Title
Guidelines on PCSO-STL Fund Utilization in PNP
Law
Pnp Memorandum Circular No. 2011-002
Decision Date
Jan 17, 2011
Guidelines established for the Philippine National Police on the accounting and utilization of funds from the Small Town Lottery (STL) to ensure transparency, accountability, and compliance with government regulations.
pcso fund
small town
lottery

References, legal basis, and related issuances

  • The circular anchors its coverage and implementation on Republic Act 1169, which is listed as a reference.
  • The circular also cites PCSO Resolution No. 464, PCSO Resolution No. 312 dated July 18, 2007, and PCSO Resolution No. 323 dated May 14, 2008.
  • The circular cites NAPOLCOM Resolution No. 2006-116.
  • The circular cites COA Circular No. 94-116 and ties disbursement rules to COA Circular No. 94-013.

Policy purpose and guiding objectives

  • The circular prescribes uniform rules and procedures for the proper accounting and utilization of funds remitted to the PNP from PCSO-STL.
  • The circular aims to promote transparency, accountability, and equity in using the funds through approved government accounting procedures.

Definitions: key terms used

  • STL Fund means cash or money remitted to the PNP as part of the percentage share from the PCSO-STL Project.
  • Unit means a territorial office of the PNP from National Headquarters down to the smallest police offices.
  • PNP Official Receipt means an official form issued by an authorized PNP Collection Officer upon receipt of any funds remitted/transferred in favor of the PNP.
  • Program of Expenditure (POE) means an itemized list of authorized projects prepared by a requesting unit for funding purposes.

Coverage and fund source

  • The circular covers the accounting and utilization of funds remitted to the Philippine National Police by the PCSO-STL.
  • STL funds come from Small Town Lottery (STL) operation under the PCSO remittance framework referenced in PCSO Memo Circular 464.
  • STL funds are disbursed in accordance with COA Circular No. 94-013 rules and regulations on disbursement.
  • STL funds are treated as a distinct PNP-STL Fund generated from the PCSO-STL remittance.

Remittance, banking, and fund availability

  • For funds received from PCSO, an official receipt shall be issued by the Collection Officer to PCSO for the checks received.
  • A checking account shall be opened in the name of PNP-STL Fund of the respective Police Regional Office.
  • Initial deposits incurred in opening the account shall be charged to the STL Fund of the Regional Office.
  • Income from PNP-STL remittances constitutes the PNP-STL Fund.
  • The PNP-STL Fund is available for use by the PNP subject to approval of the CPNP/RD/PD.

Limits on use of the PNP-STL Fund

  • The PNP-STL Fund shall not be utilized for additional compensation to employees in the form of allowances, incentive pay, bonuses, or other forms of additional compensation, except when authorized pursuant to PD 985 of PD 1597.
  • The PNP-STL Fund shall also not be used to create new positions.
  • The PNP-STL Fund shall also not be used to augment salaries of regular personnel.
  • Disbursement increments or the total net programmable amount of the PNP-STL Fund in the National Headquarters shall be made available to the Chief, Philippine National Police to fund PNP programs and projects.

POE requirement and approval authority

  • Utilization of the PNP-STL Fund shall be based on a Program of Expenditure (POE).
  • The POE shall be approved by the CPNP/RD/PD subject to existing accounting and auditing rules and regulations.
  • Approval for all obligating instruments and DVs chargeable against the PNP-STL Fund is governed by the following approving authorities:
    • Over 1 Million: Chief, PNP
    • Below P1 Million: DC/RD
    • Below P500,000: DDC
  • Check authority for checks chargeable against the PNP-STL Fund is governed by signatory/counter-signatory rules:
    • Over 1 Million: D, PNPFS signs, countersigned by Chief, PNP
    • Below P1 Million: CO, RFSO signs, countersigned by RD
    • Below P500,000: CO, RFSO signs, countersigned by C, RCD
  • Corresponding POE submissions for the PNP-STL Fund shall be made on a monthly basis, subject to approval by CPNP/RD/PD.
  • Realignment from within the POE during fund execution shall be allowed only subject to approval by the Chief, PNP, RD or PD.

Collections: deposit procedures and monthly reporting

  • The PNP Finance Service shall designate Collection Officers/Fund Custodians in Regional and Provincial Offices.
  • Designated Collection Officers/Fund Custodians in NHQ/PROs/PPOs shall deposit all collections into their respective PNP-STL Fund Account in an authorized Government Depository Bank.
  • Deposit slips shall be accomplished by designated Collection Officers/Fund Custodians in three (3) copies.
  • A List of Collections (LC) shall be attached to the deposit slip copy.
  • Validated deposit slip distribution shall be:
    • Original Copy: AGDB Branch
    • Second Copy: Collecting Officer
    • Third Copy (with attached LC): TFE
  • Designated Collection Officers/Fund Custodians in NHQ/PROs/PPOs shall submit a monthly Report of Collections and Disbursements together with a duly authenticated copy of the deposit slip to DC (Attn: Accounting Division and Management Division) not later than 15th day of the following month.
  • Collections pertaining to dishonored checks shall be footnoted, making reference to the date the subject check was deposited.

Disbursements, vouchers, audit coverage, and boards

  • Disbursement Vouchers/claims shall be processed in accordance with the approved POE, subject to existing accounting and auditing rules and regulations.
  • Transactions covered by COA pre-audit shall be implemented for procurements of supplies amounting to P2,0000,00.00 above.
  • Disbursement Vouchers (DVs) shall be prepared, processed, and certified as to availability of funds by the Accounting Division before checks are issued.
  • A Report of Disbursement shall be submitted to NHQ, certified by the Regional Accountant and verified by the Regional Auditor on a quarterly basis.
  • Because STL funds are government funds, paid vouchers are subject to post audit by COA.
  • The circular establishes STL boards at multiple levels with POE preparation approval authority:
    • An NHQ STL Board prepares the POE for NHQ STL fund allocation and the POE is approved by the Chief, PNP.
    • A Regional STL Board prepares the POE for the PRO STL fund allocation and the POE is approved by the Regional Director.
    • A Provincial STL Board prepares the POE for the PPO STL fund allocation for PPOs and their Police Stations and the POE is approved by the Provincial Director.

Implementation responsibilities by office

  • The Director, PNP Finance Service shall designate a responsible officer for custody and accounting of deposit slips.
  • The designated responsible officer must be properly bonded.
  • The Director, PNP Finance Service shall designate Collection Officers in NHQ, PROs, and Provincial Offices responsible for:
    • collecting remittances from franchise holders operating the PCSO-STL Project, and
    • preparing disbursement vouchers and disbursing funds to the respective unit/office concerned.
  • The Directorate for Comptrollership (DC) shall conduct regular audit and accounting on collections and utilization.
  • The DC (C, Accounting Division) shall reconcile Bank Statements with Credit Advice, Abstracts of regular collections, and Consolidated Order of Payment Forms on timing rules tied to deposit periods:
    • for deposits received from the 1st day to the 15th day of the month, reconciliation is not later than the last day of the month; and
    • for deposits received from the 16th to the last day of the month, reconciliation is not later than the 15th day of the following month.
  • Regional Directors (thru Regional STL Board) shall:
    • prepare the POE for Regional-level utilization and disbursement of PNP-STL fund subject to accounting and auditing rules, with supporting documents bearing the required sub-responsibility code;
    • study and approve POE at Provincial/District level subject to accounting and auditing rules, with supporting documents bearing the required sub-responsibility code;
    • implement programs and projects in accordance with the approved POE and ensure liquidating instruments are prepared according to accounting and auditing rules; and
    • identify and compile data on operations of PCSO-STL franchise holders operating in their AOR.
  • Provincial/District Directors (thru Provincial STL Board) shall:
    • prepare the POE for Provincial/District-level utilization and disbursement subject to accounting and auditing rules, with supporting documents bearing the required sub-responsibility code;
    • study and approve POE at the City/Municipal Station level subject to accounting and auditing rules, with supporting documents prepared and submitted;
    • implement programs and projects in accordance with the approved POE and ensure liquidating instruments are prepared according to accounting and auditing rules; and
    • identify and compile data on operations of PCSO-STL franchise holders operating in their AOR.

Administrative liability for guideline violations

  • Any personnel who violates the prescribed guidelines and procedures is administratively liable.
  • The violator shall be meted with appropriate sanctions.

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