Professional Documents
Culture Documents
Concept of Funds –
Funds – is the sum of money or other resources set aside for the purpose of carrying out specific
activities or attaining certain objectives in accordance with specific regulations, restrictions or limitations
and constitutes an independent fiscal and accounting entity.
Government funds -public money in every sort and other resources pertaining to any agency of the
government.
1. Local Funds- every LGU shall maintain a General Fund which shall be used to account for each monies
and resources as may be received by and disbursed from the local treasury.
General Fund- conist of monies and resources of the local government which are available for the
payment of expenditures, obligations or purposes not specifically declared by law as accruing and
chargeable or payable from any other fund.
Trust Funds – consist of public and private monies which have officially come to the possession of the
local government or local government official as trustee, agent or administrator which have been
received as guaranty for the fulfillment of some obligations.
Fundamental Principles Governing Utilization of Funds:
a. No money shall be paid out of the local treasury except in pursuance of an appropriations
ordinance or law.
b. Local government funds and monies shall be spent solely for public purposes.
c. Trust funds in the local treasury shall not be paid out except in fulfillment of the purpose for
which the trust fund was created or the funds received.
d. Fiscal responsibility shall be share by all those exercising authority over the financial affairs,
transactions and operations of the local government units
e. Claims against government funds shall be supported with complete documentation
f. No contract involving the expenditure of public funds shall be entered into unless there is an
appropriation, unexpended balance of which free of other obligations shall be sufficient to cover
the proposed expenditure.
g. Expenditures of government funds or government property in violation of law or regulation shall
be personal liability, employees are found to be directly responsible.
h. Disbursements or disposition of government funds shall invariably bare the approval of the
proper officials.
i. All laws and regulations applicable to financial transactions shall be faithfully adhered.