Collection, Deposit and Remittance of Local Funds
Collection
The treasurer and duly designated collecting officers collect taxes, fees and charges and issue a COA-prescribed official receipt at the time of payment. The receipt shows date, payer, nature of payment, amount in words and figures, and the accountable form number. Collections belong to the LGU immediately.
Deposit and remittance
- Field collectors remit to the local treasurer; the treasurer deposits to the designated depository bank.
- Deposit is intact and timely - the standard is the same or next banking day. Never use collections to cash checks, pay salaries or make advances.
- Record the collection in the RCD and cash book; keep the official receipt copy.
- Report collections through the required monthly reports.
Worked example
A market collector remits P48,500 on Monday for Saturday and Sunday collections. The treasurer counts the cash, compares it with the duplicate receipts and the collector's summary, issues an acknowledgment, and deposits P48,500 on Tuesday. The treasurer does not retain P3,000 for market cleaning supplies; that is a disbursement requiring a voucher and appropriation. Any shortage is charged to the collector's accountability after due process.
Traps
- Accepting a remittance without counting or comparing to receipts.
- Borrowing from collections for a day.
- Issuing temporary or unofficial receipts.
- Depositing to a personal or non-designated account.
- Reporting net rather than gross collections.