DBM-DENR JOINT CIRCULAR

NO, 2014-1
On R.A. NO. 10629
Dated September 26, 2014

RATIONALE
RA N0. 10629 amending

Section 16 of RA 7586
providing for the retention by
Protected Area Management
Board (PAMB), 75% of the
revenues accruing to
Integrated Protected Areas
Fund (IPAF)

RA No. 10633 or the 2014 General

Appropriation Act (GAA), recognized that

the 75% of the income authorized to be
retained by the Board is in addition to
DENRs existing use of income authority.
The President in his VETO message
subjected the implementation of RA 10629
to the policies, rules and regulations on the
use of income by agencies and creation of
trust accounts. These policies, rules and
regulations are consolidated in this Joint
Circular.

PURPOSE
To prescribe the guidelines on

the implementation of RA No.

10629 amending section 16 of
RA N0. 7586

COVERAGE
To all revenues generated by all

protected areas except to those

established by specific laws
providing for funding mechanism
different from IPAF and covered by
other specific guidelines

USE OF FUNDS
Shall be used SOLELY for the:
P- protection;
A- administration;
M- maintenance; and
M management of the system and duly approved
projects endorsed by respective PAMBs of PAs which
are contained in the approved management plan for the
PA in the amount authorized by the DENR.
PROVIDED that the fund shall not be used to cover
personnel services expenditures

COMPOSITION OF IPAF
1. Income from Operations all incomes from the operation of the
system or management of flora and fauna. These income shall be
derived from: Taxes, proceeds from lease, contributions from
industries benefiting from the PA and other fees.
a. Protected Area Retention Income Account-(PA RIA)
-75% of the income from operations
b. IPAF Special Account in the General Fund (IPAF-SAGF)
-25% of the income from operations
2. Revenues from other Sources all endowments, donations and
grants from various sources and other contributions received.
a. Protected Area Trust Fund (PA TR)

Protected Area Retention

Income Account (PA RIA)
The account that each Protected Area shall
establish and maintain for the 75% of income
from operations generated by the PA
authorized to be retained under RA No.
10629. An account in the name of the specific
PA IPAF shall be opened and maintained for
this purpose with an Authorized Government
Depository Bank (AGDB) (e.g. TSPS PA-IPAF).
The opening of accounts shall be in
accordance with Treasury Circular No. 2014-2
dated June 16, 2014 or such other guidelines
as may be issued by the Bureau of Treasury.

IPAF Special Account in the General

Fund (IPAF SAGF)
Is the existing account with the National

Treasury which shall consist of :

a. the accumulated remitted income of the
PA prior to the effectivity of this
guidelines;
b. 25% of the income from operations
generated by PAs

Protected Area Trust Receipts (PA

TR)
The account that each Protected Area (PA)

shall establish and maintain for all revenues

from other sources received by the PA for
the fulfillment or particular obligations or
implementation of specific projects or
activities. Trust receipts shall be deposited
to the National Treasury pursuant to the
Annual General Appropriation Act.

Two (2) types of Trust Receipts

1. Trust Receipts (Trust Liability)
Receipts from Non-tax sources, including insurance proceeds, and
donations for a term not exceeding one (1) year authorized by law
or contract for specific purposes:
a. which are collected or received by the offices of the
National Government, such as the PA or PAMB, acting
as trustee, agent or administrator;
b. which have been received as guaranty for the fulfillment
of an obligation; or
c. classified by law or regulations as trust receipts , shall be
deposited with the National Treasury.
This fund can be utilized by requesting from DBM the release of
Cash corresponding to the amount deposited. The release shall
be in a form of NCA which shall be credited to the MDS Special
Account of the PA. No Allotment shall be requested because
these are trust receipts

2.Trust Receipts Deposited with National

Treasury as Special Account in the
General Fund

Receipts from Donations/grants

for specific purpose with a term

exceeding one (1) year shall be
deposited with the National
Treasury and Recorded as Special
Account in the General Fund

Collections and Deposits

All collecting units shall ensure
that
Revenues from different sources
are recorded under the
appropriate IPAF accounts using
the UACS funding source codes;
Deposited to appropriate IPAF
Bank Accounts

Funding Source Code under the

UACS

DENR shall request from DBM

for the assignment of specific

funding source codes for each of
the IPAF Accounts of individual
Protected Areas (PA) identified and
defined in this Joint Circular

Fund Custodian/Function
1. CUSTODIAN:
DENR Regional Office or
Provincial Office nearest or most accessible
to the PA
2.FUNCTION:
provide necessary accounting and
administrative support in the
management of the Fund (Open the
required bank accounts in the name of PA.

Guidelines
The Regional Director shall designate

Special Collecting Officers for the PA who

shall be responsible for the collection,
recording, deposit and reporting of all
revenues generated and/or received by the
PA in accordance with accounting and
auditing rules and regulations;
The Fund custodian (Regional Office or
PENR office) shall open the required bank
accounts in the name of the PA collecting
the revenues

All collections for IPAF accounts shall be

acknowledged through the issuance of

Official Receipts. All deposits shall be
acknowledged by deposit slips and
remittance advice or other similar forms in
accordance with pertinent rules and
regulations;
All collections shall be deposited on a daily
basis or in consistent with existing COA
rules and regulations on deposits of cash
receipts.

Designation of Disbursing Officers (DOs)

and signatories to the financial documents

and checks of IPAF accounts shall follow
the DENR Manual of Authority applicable
to Regional or Provincial Office which has
the custodial responsibility for the PA-IPAF
accounts;
Disbursements of IPAF shall be supported
by documents prescribed by existing COA
rules and regulations

Deposits
Types of Income IPAF Accounts
1. 75% of Income from operations -PA Retention
Income Account
(PA RIA)
2. 25% of Income from operations -IPAF Special
Account in the General Account(IPAF SAGF)
3. Receipts from donations, grants
endowments exceeding one year -PA Trust
Receipts Special
Account in
the General Fund
4. Receipts from donations, grants, -PA TrustLiability
(1) year

Utilization

IPAF Accounts Process

1. PA RIA -Shall be directly utilized
2. IPAF SAGF -as to accumulated remittances
before the effectivity of this - subject to
request for special budget
(old Procedure)
3. PA Trust in SAGF - subject to request for
Special Budget
4. PA Trust-Trust Liability - subject only for
release of NCA
and not for Special budget

Disbursements
PA Retained Income Account (PA RIA) 75% of income
generated
- In accordance with COA-DBM-CSC Rules and
Regulations, PAMB resolution should be within the
provisions thereof;
- Direct Utilization;
- Disbursement of funds is based on PAMB approved Work
and Financial Plan;
- Use of collections shall be limited to income earned on
accrual basis. Only earned or realized income shall be
made available for utilization. Advance collections or
payments received shall be treated as deferred revenue
or
unearned Income. This is to provide for any contingent
liability that may arise from such advance collection.

 Payment of development fees for 25 years

generated from income from operations

shall be assessed and programmed in WFP
based on computed annual payments;
- 25% of the balance of IPAF SAGF prior to
the effectivity of this circular and all other
deposits shall be used by any PA or DENRBMB.

Disbursements
PAMB shall submit to the DBM through DENR-

BMB, a Special Budget in accordance with the

purpose and intent of the Donation or grant the
period of the activities exceeds one year as
reflected in the Deed of Donation which shall
also be submitted as supporting documents.
DBM after evaluation of the documents
submitted shall issue release documents to the
Donee in a form of SARO and the
corresponding NCA.
Usual accounting procedure is observed in
recording the allotment and NCA received and
so with the disbursement of funds

Disbursements
Receipts of donations/grants with a

term of one (1) year or less shall be

treated as Trust Liability account of
DENR.
NCA shall be requested from the DBM
for the amount of the donation or grant
Disbursement shall be in accordance
with existing rules and regulations.

Reporting
WHAT to submit (printed or electronic from)
- Quarterly Financial and Physical Accomplishments
on the Utilization of Funds
- Quarterly Reports of Donations in case of IPAF
Trust
- List of Projects and activities and their
corresponding amounts.
WHERE to submit:
- House Committee on Appropriations;
- Senate Committee on Finance;
- DBM
COA
PROVIDED Quarterly reports are posted in the
Transparency Seal of DENR

Penalty Clause
Non Compliance with this guidelines
Failure to submit all the required Reports

Shall render the disbursement from IPAF

> VOID
and shall subject the erring OFFICIALS
and EMPLOYEES
>DISCIPLINARY
ACTION per Admin
Code of the Phils. or EO
292
> CRIMINAL ACTION
per Penal Laws