WHEREAS, Book VI, Chapter 5, Section 44, of the 1987 Administrative Code provides that all income from government instrumentalities shall accrue to the unappropriated surplus of the General Fund, unless specifically provided by law;

WHEREAS, Book VI, Chapter 5, Section 45, of the 1987 Administrative Code regulates the recording and application of the special, fiduciary and trust funds;

WHEREAS, Book VI, Chapter 5, Section 35, of the 1987 Administrative Code defines the use of special budgets for lump-sum appropriations;

WHEREAS, Section 2 of the General Provisions of the Annual General Appropriations Act further reiterates the provisions of Book VI, Chapter 5, Sections 35 and 45, of the 1987 Administrative Code;

WHEREAS, Executive Order No. 1002 dated January 25, 1985 authorizes the Armed Forces of the Philippines (AFP) to treat as trust receipts the fees collected from certain operations and in the exercise of its regulatory functions and grants the AFP Chief of Staff authority to utilize the same;

WHEREAS, by virtue of the absorption of the Philippine Constabulary (PC) and the functions of the Philippine Soast Guard (PCG) and the Philippine Air Force Security Command (PAFSECOM) into the Philippine National Police (PNP) pursuant to Republic Act No. 6975, statutory and regulatory functions must be continued by the PNP and revenues derived therefrom must accrue to the PNP;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Authority to Collect Fees. - Fees authorized to be collected by the Philippine Constabulary, the Integrated National Police and the AFP Units absorbed by the Philippine National Police in the implementation of its statutory functions and the direct cost of operations from the various government agencies requesting for the use of PNP equipment and facilities shall henceforth be collected by the Philippine National Police.

SEC. 2. Authority to Use Income. - Fees collected in Section 1 hereof shall be classified as trust receipts and shall be deposited in an authorized government depository bank or in the National Treasury. Increments or the whole amount thereof shall be made available to the Chief of the PNP to augment the PNP appropriations, subject to the approval of the Secretary of the Interior and Local Government. Payments out of such fund shall be made in accordance with the purpose for which the fund is created and subject to accounting and auditing regulations.

SEC. 3. Rules and Regulations. - The Secretary of the Budget and Management and the Secretary of the Interior and Local Government shall issue such rules and regulations that will effectively carry out the provisions of this Administrative Order, subject to the concurrence of the Chairman, Commission on Audit.

SEC. 4. This Administrative Order shall take effect immediately.

DONE in the City of Manila, this 27th day of December, in the year of Our Lord, nineteen hundred and ninety-one.


By the President:
(Sgd.) FRANKLIN M. DRILON
Executive Secretary