QuestionsQuestions (DOF Department Circular No. 001-2015)
The Circular is issued in line with the mandate of the Department of Finance under the Administrative Code of 1987 and Executive Order No. 127 (s. 1987). Its objective is the sound and efficient management of government financial resources.
It covers all NGAs, GOCCs/GFIs, GICPs/GCEs, and LGUs.
It is a bank where government agencies are allowed by law to deposit government funds and maintain depository accounts, or by exception, a bank allowed/designated by DOF and the Monetary Board to hold government deposits subject to prescribed rules.
A financial institution/corporation in which the government owns majority capital, and that is either (1) registered with or directly supervised by BSP, or (2) collecting or transacting funds/contributions from the public and placing them in financial instruments/assets such as deposits, loans, bonds, and equity (including GSIS and SSS).
Public moneys of every sort and other resources pertaining to any agency of the government.
They are instrumentalities/agencies of government that are not corporations nor integrated into the departmental framework, but are vested by law with special functions/jurisdiction, endowed with some or all corporate powers, administer special funds, and enjoy operational autonomy through a charter (examples listed in the Circular).
It defines GOCCs broadly to include GICPs/GCEs and GFIs as defined in the Circular.
They must deposit and maintain accounts with GFIs with a universal bank license and a CAMELS rating of at least “3”.
EO 55 removed revenue and expenditure floats and required adoption of the Treasury Single Account (TSA) system for better cash management and transparency.
All NGAs shall adopt the TSA system for collection of fees/charges/other revenues and remittance of the same to the National Treasury.
They may engage other banks through a transaction fee-based arrangement without prior approval from DOF (for GOCCs) or BLGF (for LGUs). For NGAs, concurrence of BTr is required for consistency with the TSA framework. The other bank may serve only as a collection bank, and collections must be transferred to any Section 5.2 GFI on the next banking day.
Accounts may be allowed when: (1) GFIs cannot provide necessary banking products/services; (2) there are no accessible GFIs within a 20-kilometer radius or collection facility exists—requiring a vicinity map; (3) security and safety reasons exist—requiring an Independent Report/Certification from the PNP provincial office.
Operating expenses may be covered up to three (3) months (after cost-benefit analysis), or up to the maximum PDIC deposit insurance coverage of ₱500,000.00—whichever is lower. Excess funds must be transferred to the GFIs in Section 5.2.
When the Requesting Agency cannot meet all conditions under Sections 5.2 to 5.4. GOCCs must request prior approval from DOF; NGAs from BTr; and LGUs from BLGF.
A letter request; a Board Resolution authorizing the GOCC to deposit funds with the proposed bank; latest audited financial statements (not more than 18 months); latest Schedule of Cash and Short-term Investment Balances; and a Summary of its Daily Collection Report for the last three months.
A letter request; a bank certification that no elective/appointive local official of the LGU is a director/officer/stockholder unless it is the only bank operating in the territorial jurisdiction; the Sanggunian resolution authorizing deposit with approval of the Local Chief Executive; and DILG certification on the Seal of Good Housekeeping (or relevant document showing compliance).
A notarized Waiver in favor of BTr and the proposed bank to allow BTr (for NGAs) to have oversight authority on the bank account and for the bank to provide any required reports/statements to BTr.
The DOF shall recommend to BSP the cancellation of authority to accept government deposits (if already granted) and/or disqualification to act as a government depository for not more than one (1) year, without prejudice to other BSP-imposed sanctions.
The Heads of NGAs/GOCCs/LGUs are responsible for compliance, without prejudice to criminal and/or administrative liability under existing laws, rules, and regulations.
It takes effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation in the Philippines.