1.

PURPOSE

This Order is issued to prescribe the rules and regulations covering the collection, remittance and utilization of proceeds from the sale of government lands and other properties transferred to the Bases Conversion Development Authority pursuant to RA No. 7227 as amended by RA No. 7917.

2.

COVERAGE

This Order covers the Bases Conversion Development Authority (BCDA) and all agencies, national, local or government corporation, designated as beneficiaries, implementors or conduits, hereafter referred to as agencies, of the proceeds of the sale of government lands and other properties in accordance with the provisions of RA No. 7227 as amended by RA No. 7917.

3.

GENERAL GUIDELINES

3.1 Pursuant to the "one fund" concept in government budgeting and accounting, consistent with the provisions of Section 29 (1) of Article VI and Section 22 of Article VII of the Constitution, as implemented by Sections 44 and 45, Book VI of EO No. 292 and Sections 65 and 66 of the Government Auditing Code, all income, fees, charges, assessments, and other receipts or revenues collected by government offices and agencies shall be deposited in the National Treasury and shall accrue to the General Fund of the National Government.

3.2 Section 1 of RA 7917 provides that "The proceeds from any sale, after deducting all expenses related to the sale, of portions of Metro Manila military camps as authorized under this Act, shall be deemed appropriated for the purposes herein provided. . .". This means that the funds are automatically appropriated and their utilization shall be in accordance with the purposes enumerated therein, subject however, to budget programming based on the approved government fiscal program for the year.

4.

SPECIFIC GUIDELINES

4.1 The proceeds from the sale of government lands and other properties pursuant to Section 8 of RA 7227 as amended by RA 7917 are hereby declared government funds and shall be remitted to the National Treasury and shall accrue to the General Fund of the Government.

4.2 BCDA shall remit to the National Treasury, the proceeds from the sale, net of the expenses directly incurred in the sale of the land or property, within two weeks after receipt of actual payment form the buyer. The direct expenses incurred shall pertain to those expenses that are directly attributable to the sale of the land or property such as the appraisal/valuation of the properties, marketing expenses and relocation/replication costs or those which would not have been incurred by BCDA and AFP if the decision to sell were not made, with the latter to be determined jointly by a Committee herein created composed of representatives from the Bases Conversion Development Authority (BCDA), Department of National Defense (DND) and Department of Finance (DOF).
4.3 In accordance with Section 1 of RA 7917, 2.5% of the sales proceeds of Fort Bonifacio, net of the direct expenses defined in the preceding section, shall be deducted to cover the share to be divided equally among the City of Makati and the Municipalities of Taguig and Pateros. The Bureau of the Treasury shall establish a separate Special Account for the Department of Budget and Management which shall act as conduit and administrator of the fund intended for the City of Makati and the Municipalities of Taguig and Pateros.

4.4 The Purposes enumerated in RA 7917 shall be interpreted as follows:


4.5 The Bureau of the Treasury shall record the net proceeds, i.e., after deducting the expenses and shares stipulated in Section 4.2 and Section 4.3, respectively, separately as a Special Account in the General Fund. For this purpose, a separate Special Account shall be established for each of the individual agencies, as follows.


4.6 The individual Special Accounts shall be utilized exclusively for the purposes for which they have been established as prescribed under Section 8 of RA 7227 as amended by RA 7917. The DBM shall program the annual utilization of the proceeds of sales consistent with the approved fiscal program of the government and shall release the share of each of the beneficiary agencies in accordance with specific budget execution guidelines.


4.7 The Special Accounts herein established shall be considered as sources of funding for the purposes enumerated in RA 7917 and not as additional appropriations to other appropriation sources intended for purposes similar to those enumerated in the same Act. However, for CY 1995, in cases where an appropriation for the purposes enumerated in RA 7917 has been provided under the General Appropriations Act, said appropriation shall first be obligated prior to the release of funds against the special account except if the appropriation in the GAA refers to a regular program of the department/agency.

4.8 All expenditures chargeable against the individual Special Accounts shall be included in the program of expenditures of the national government and the local government units concerned. However, the appropriations will not be reflected in the General Appropriations Act. For this purpose, all agencies shall prepare and submit to the Department of Budget and Management, a request and such other documents as may be required detailing the items of expenditures. This request shall include both the quarterly obligation and cash program requirements of the beneficiary agency.

4.9 Beginning 1996, all expenditures shall be included in the over-all expenditure program of the agency concerned following the regular budgetary process. Proposed programs and projects to be funded under RA 7917 shall be evaluated against the overall requirements of the agency.

4.10 All agencies shall submit periodic reports to the Office of the President, copy furnished the Department of Budget and Management and the Department of Finance on the status of funds utilization in accordance with the provisions of DBM Circular Letter No. 92-6 June 27, 1992.

5.

EFFECTIVITY

This Order shall take effect fifteen (15) days following publication in two (2) newspapers of general circulation.

Adopted: 08 Jan. 1996


By the President: