Receipts/Income Collection and Deposit

As a general rule, the collection of UP Manila income and receipts shall be done by the regularly appointed Collecting Officer. In UP Manila, they are the staff at the Cashier's Office whose duties/job descriptions permit them to perform the above function. However, the Chancellor may designate other collecting officers or agents as may be deemed necessary. As collecting officers, they shall be properly bonded in accordance with law (Sec. 64 & 101, PD 1445) E.1 Laws and rules pertinent to receipt/income :

E.1.1   Collectors/tellers may also be designated to assist the Collecting Officers. They shall turnover their collections daily to the collecting officer concerned (Sec. 64, PD 1445)4.

E.1.2   No payment of any nature shall be received by a Collecting Officer without immediately issuing an official receipt in acknowledgment thereof. At no instance shall temporary receipts be issued to acknowledge the receipt of public funds (Sec. 68, PD 14 45; Sec. 4, Chapter 2, GAM Vol.I)5.

E.1.3   The UP Manila Cashier shall remit/deposit intact the full amounts so received and collected by them to the UP Manila authorized depository bank within the day or the following working day from receipt thereof. At no instance should money in the hands of the collecting officer be utilized for the purpose of encashing private checks (Sec. 67, PD 1445; Sec. 4 (i), Chapter 2, GAM Vol. 1)6.

E.1.4   Accountable officials shall keep personal money separate and distinct from public funds in their custody and shall not make profit out of public money or otherwise apply the same to any use not authorized by law (Chapter 3, Art. 6, Sec.106, GAAM Vol.I)7.

E.1.5   Every officer accountable for government funds shall be liable for all losses resulting from the unlawful deposit, use or application thereof and for all losses attributable to negligence in the keeping of the same (Sec.105 (2), PD 1445); Sec.3 (e2), Chapter 2, GAM Vol. 1)8.

E.1.6   The accountable officer shall immediately notify the Commission on Audit, thru the Chancellor when a loss of government funds occurs while they are in transit or the loss is caused by fire, theft or other casualty or force majeure and, within 30 days or such longer period as the Commission on Audit may in the particular case allow, shall present his application for relief with supporting evidence. An officer who fails to comply with this requirement shall not be relieved of his liability or allowed credit for any such loss in the settlement of his accounts (Sec. 73, PD 1445; Sec.3 (c4), Chapter 2, GAM Vol.1)9.

E.1.7   Except as may otherwise be specifically provided by law or competent authority all money and property officially received by a public officer in any capacity or upon any occasion must be accounted for as government funds and government property (Sec. 63, PD 1445; Sec. 4 (b) Chapter 2, GAM Vol. 1)10.

E.2   Expenditures and Disbursements

E.2.1   Government expenditures may be classified as follows:

E.2.1.1   Current operating expenditures - refer to appropriations for the purchase of goods and services for current consumption or benefits expected to terminate within the fiscal year.

• They are classified into:
• Maintenance and Operating Expenses
• Financial Expenses
  Capital outlays - refer to appropriations for the purchase of goods and services, the benefits of which may extend beyond the fiscal year subject to the General Provisions of the Annual General Appropriations Act for government subsidy and which add to the assets of the government.

E.2.1.2   There shall be a UP Manila approved program of expenditures which shall be the basis of fund releases and obligation ceiling during the year.

Expenditures of funds or use of property in violation of law shall be a personal liability of the official or employee directly responsible therefor (Sec. 103, PD 1445)11.

E.2.1.3   The Commission on Audit promulgated auditing rules and regulations to prevent irregular, unnecessary, excessive or extravagant expenditures or uses of government funds or property. COA Circular # 2012-003, dated October 29, 201212, defines the above expenditures as follows:

E.2.1.3.1   Irregular expenditure - signifies expenditure incurred without adhering to established rules, regulations, procedural guidelines, policies, principles or practices that have gained recognition in law. Irregular expenditures are incurred without conforming with prescribed usages and rules of discipline. There is no observance of an established pattern, course, mode of action, behavior, or conduct in the incurrence of an irregular expenditure. A transaction conducted in a manner that Basic Administrative Policies and Procedures 37 deviates or departs from or which does not comply with standards set, is deemed irregular. An anomalous transaction which fails to follow or violate appropriate rules of procedures is likewise irregular. Irregular expenditures are different from illegal expenditures since the latter would pertain to expenses incurred in violation of the law whereas the former in violation of applicable rules and regulations other than law.

E.2.1.3.2   Unnecessary expenditure - pertains to expenditure which could not pass the test of prudence or the diligence of a good father of a family, thereby denoting non-responsiveness to the exigencies of service. Unnecessary expenditures are those not supportive of the implementation of the objectives and mission of the agency relative to the nature of its operations. This would include incurrence of expenditure not dictated by the demands of good government, and those the utility of which cannot be ascertained at a specific time. An expenditure that is not essential or that which can be dispensed with without loss or damage to property is considered unnecessary. The mission and thrusts of the agency, must be considered in determining whether the expenditure is necessary or not.

E.2.1.3.3   Excessive expenditures - signify unreasonable expense or expenses incurred at an immoderate quality and exorbitant price. They include expenses which exceed what is usual or proper, as well as expenses which are unreasonably high, and beyond the just measure of reasonable limits.

E.2.1.3.4   Extravagant expenditures signify those incurred without restraint, judiciousness and economy. Extravagant expenditure exceed the bounds of propriety. These expenditures are immoderate, prodigal, lavish, luxurious, wasteful, grossly excessive, and injudicious.

E.2.2   Disbursements constitute all cash paid out during a given period either in currency or by check out of the budgeted amounts.

Basic requirements applicable to all classes of disbursements: (Sec 168, GAAM Vol. I/GAM Chapter 2, Section 36)13

E.2.2.1  Certificate of Availability of Fund;

E.2.2.2  Approval of claim or expenditure by head of office or his/her authorized representative;

E.2.2.3  Documents to establish validity of claim;

E.2.2.4  Conformity of the expenditure to existing laws and regulations; and

E.2.2.5  Proper accounting treatment

E.2.3   Advance Payments on Contracts:

No advance payment, partial or final, shall be made on any contract except upon certification of concerned UP Manila officer/s to the effect that the services have been rendered or supplies and material have been delivered in accordance with the terms of the contract and have been duly inspected and accepted (Sec. 88, PD 1445)14.