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OFFICE OF THE BUDGET AND MANAGEMENT

COMMISSION ON AUDIT
MINISTRY OF FINANCE

JOINT CIRCULAR NO. 1-83


October 29, 1982

TO : Heads of Ministries, Agencies and Offices; the President of the University of the
Philippines System; the Treasurer of the Philippines; Chief Accountants/Heads of
Accounting Units; Collecting Officers; COA Unit Auditors; and Others concerned.

SUBJECT : Guidelines on the Implementation of Letter of Instructions No. 1182, pertaining to


Collection and Remittance of Legal Research Fees as Imposed by Republic Act
No. 3870, dated June 12, 1964, as amended by Presidential Decree No. 200
dated May 27, 1973.

1.0 PURPOSE

This Circular is issued to provide guidelines, rules and procedures in the


collection and deposit/remittance by collecting agency of Legal Research Fee, as
imposed by Presidential Decree No. 200 as well as the maintenance of a separate
account in any authorized government depository bank to ensure proper and effective
implementation of Letter of Instructions No. 1182, dated December 16, 1981 of the
President of the Philippines.

2.0 COVERAGE

This Circular is applicable to agencies enumerated under LOI No. 1182, all other
agencies which exercise quasi- judicial functions, and other agencies involved in the
implementation thereof.

3.0 GENERAL GUIDELINES

3.1 Legal Research Fee, in an equivalent amount, shall be computed and collected as
follows:

a. For Appellate Courts - one percent (1%) of the filing fee imposed but not lower
than five pesos.

b. For Other Courts including Administrative or Special Courts, Agencies or


Tribunals exercising quasi-judicial functions one percent (1%) of the filing fee
imposed but not lower than two pesos.

3.2 Legal Research Fee collected shall be treated as trust liability and automatically be
released to the University of the Philippines System, without the need of a special
budget or the issuance of a cash disbursement ceiling.
3.3 Joint Circular No. 1-81, dated January 1, 1981 of the Commission on Audit and
Ministry of Finance, prescribing the frequency of depositing collections; and Joint
Circular No. 9-81 of the Commission on Audit, Ministry of Finance and Ministry of
the Budget, dated October 19, 1981, prescribing guidelines in the proper handling,
operation and accounting treatment for trust receipts shall be observed.

4.0 PROCEDURAL GUIDELINES

4.1 The collecting agency shall:

a. Collect the legal research fee and issue the corresponding official receipt for
the collection received as part of the Legal Research Fund (LRF).

b. Remit collection for LRF under a separate remittance advice with the Bureau of
the Treasury (BTR) to the credit of collecting agency.

c. Prepare monthly Reports of Collection pursuant to existing rules and


regulations.

d. Draw a journal voucher monthly transferring the Trust Liability account to the
University of the Philippines System (UPS). A copy of the journal voucher shall
be forwarded to the UPS and to the National Cash Accounting Division (NCAD)
of the BTR.

4.2 The Bureau of the Treasury (BTR) shall:

a. Prepare a journal vouchers charging the account of the collecting agency and
crediting the account of the UPS.

b. A copy of the journal voucher shall be forwarded to the UPS.

4.3 The University of the Philippines System shall:

a. Prepare a journal voucher taking up the deposit with the BTR under a Trust
Liability account Legal Research Fund (Fund Code 163), on the basis of the
journal voucher received from the NCAD, BTR.

b. Pay maintenance and operating expenses (MOE) and capital outlay


expenditures through Treasury Warrants (TWs), subject to the provisions of
COA Circular 82-185, dated May 18, 1982.

c. Transfer from the Legal Research Fund (163) to the Special Account in the
General Fund (151), the corresponding amount of collection that will back up
the expenditures for personal services.

d. Maintain separate set of books for the LRF and prepare separate trial balances
and financial statements. In addition, maintain subsidiary records for each
collecting agency to effectively monitor remittances and transfers from collecting
agency thru BTR to UPS.
5.0 ACCOUNTING ENTRIES

5.1 Illustrative accounting entries are shown in Annex A and B hereof.

6.0 EFFECTIVITY

This Circular shall take effect immediately.

(SGD.) FRANCISCO S. TANTUICO, JR.


Chairman
Commission on Audit

(SGD.) MANUEL S. ALBA (SGD.) CESAR A. VIRATA


Minister of the Budget Prime Minister
&
Minister of Finance