Book II - Title Five - Chapter 2

Sec. 307. Remittance of Government Monies to the Local Treasury. - Officers of the local authorized to receive and collect monies arising from taxes, revenues, or receipts of any kind shall remit the full amount received and collected to the treasury of such local government unit which shall be credited to the particular account or accounts to which the monies in question properly belong.

Sec. 308. Local Funds. - Every local government unit shall maintain a General Fund which shall be used to account for such monies and resources as may be received by and disbursed from the local treasury. The General Fund shall consist 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 to, or payable from, any other fund.

Sec. 309. Special Funds. - There shall be maintained in every provincial, city, or municipal treasury the following special funds: (a) Special Education Fund (SEF) shall consist of the respective shares of provinces, cities, and Barangays in the proceeds of the additional tax on real property to be appropriated for purposes prescribed in Section 272 of this Code; and (b) Trust Funds shall consist of private and public monies which have officially come into the possession of the local government or of a local government official as trustee, agent or administrator, or which have been received as a guaranty for the fulfillment of some obligation. A trust fund shall only be used for the specific purpose for which it was created or for which it came into the possession of the local government unit.

Sec. 310. Separation of Books and Depository Accounts. - Local accountants and treasurers shall maintain separate books and depository accounts, respectively, for each fund in their custody or under such rules and regulations as the Commission on Audit may prescribe.

Sec. 311. Depository Accounts. - Local treasurers shall maintain depository accounts in the of their respective local government units with banks, preferably government-owned, located in or nearest to their respective areas of jurisdiction. Earnings of each depository account shall accrue exclusively thereto.

Sec. 312. Separation of Personal Money from Public Funds. - Local treasurers and other accountable officers shall keep personal monies separate and distinct from local public funds in their custody and shall not make profit out of public money or otherwise apply the same to any use not authorized by law or ordinance.

Sec. 313. Special Accounts to be Maintained in the General Fund. - Local government units shall maintain special accounts in the general fund for the following:

1. Public utilities and other economic enterprises;


2. Loans, interests, bond issues, and other contributions for specific purposes; and


3. Development projects funded from the share of the local government unit concerned in the internal revenue allotment and such other special accounts which may be created by law or ordinance. Receipts, transfers, and expenditures involving the foregoing special accounts shall be properly taken up thereunder. Profits or income derived from the operation of public utilities and other economic enterprises, after deduction for the cost of improvement, repair and other related expenses of the public utility or economic enterprise concerned, shall first be applied for the return of the advances or loans made therefor. Any excess shall form part of the general fund of the local government unit concerned.