ACCOUNTING

FOR SPECIAL
EDUCATION
FUND
Group 1

Sec. 81. Special Education Fund. The Special Education Fund (SEF)
consist of the proceeds of one percent (1%) tax on the assessed value of real
property in addition to the basic real property tax, which a province or city, or
a municipality within the Metropolitan Manila Area, may levy and collect.

Sec. 82. Application of Proceeds of the Additional One Percent (1%)

Special Education Fund Tax.
a)

The proceeds of the additional one percent (1%) real property tax
accruing to special education fund shall be automatically released to the
local school boards.

b)

In case of provinces, the proceeds of the special education fund shall be

divided equally between the provincial and municipal school boards.

c)

Said proceeds shall be allocated as determined and approved by the local

school boards concerned only for the following purposes:

Operation and maintenance of public schools; Construction and repair of

school buildings, facilities and equipment; Educational research; Purchase of
books and periodicals; and Sports development.
(Article 363 of the IRR of the Local Government Code)

Sec. 83. Special Education Fund Budget. The Local School Board shall
determine in accordance with the criteria set by DECS (DepEd since Aug
2001), the annual supplementary budgetary needs for the operation and
maintenance of public schools within the province, city, or municipality as the
case maybe, and the supplementary local cost of meeting such needs, which
shall be reflected in the form of an annual school board budget corresponding
to its share of the proceeds of the special levy on real property constituting
the special education fund and such other sources of revenue as the Local
Government Code and other laws or ordinances may provide. (Article 184(b)
(1) of the IRR of the Local Government Code)

The division superintendent, city superintendent, or district supervisor, as the

case maybe, shall prepare the budget of the school board concerned. Such budget
shall be supported by programs, projects and activities of the school board for the
ensuing fiscal year. A majority of all the members shall be necessary to approve
the budget. (Article 184(f) of the IRR of the Local Government Code)
The annual school board shall give priority to the following:
Construction, repair and maintenance of school buildings and other facilities of

public elementary and secondary schools;

Establishment and maintenance of extension classes when necessary; and
Holding of sports activities at the division, district, municipal, and

levels.

barangay

Sec. 84. Basis of Recording Special Education Tax Special Education

Tax Receivables shall be established at the beginning of the year based on
Real Property Tax Account Register/Taxpayers index card. At the beginning
of the year, the Treasurer shall furnish the Chief Accountant with a duly
certified list of the name of taxpayers and the amount due and collectible for
the year. Based on the list, the Chief Accountant shall draw a Journal Entry
Voucher (JEV) to record the Special Education Tax Receivables.

Sec. 85. Delinquencies for Special Education Tax prior to CY 2002.

Payment of delinquencies for special education taxes prior to CY 2002 shall
be recognized as a direct credit to Special Education Tax Income account.

Sec. 86. Collection Procedures for the Special Education Tax. The
additional one percent (1%) tax on real property shall be collected simultaneously
with the basic real property tax. A single official receipt shall be issued for both
taxes, indicating therein the amount paid for the basic tax and the additional one
percent tax.

However, the collecting officer shall prepare separate reports of

collections for the two taxes. Further, the proceeds of the additional one per cent
tax shall be deposited in a separate depository account.
Procedures for the turn over of collections, frequency of deposit of collection with
the bank, preparation of report of collections, verification of collections and
accountable forms, preparation of report of accountability for accountable forms as
well as consolidation of reports of accountable forms shall be the same as that
prescribed for collections in the General Fund.

Sec. 87. Separate Cashbooks for Special Education Fund. The Treasurer
and/or the concerned accountable officers shall maintain separate cashbooks for
the SEF which shall be in accordance with the prescribed format.
Sec. 88. Separate Registries, Books of Accounts, and Financial Reports
for Special Education Fund. The Chief Accountant shall maintain separate
registries for appropriation, allotment and obligations and books of accounts for
SEF. He shall likewise prepare separate financial reports such as the Trial Balance,
Balance Sheet, Statement of Income and Expenses, Statement of Cash Flows and
supporting schedules, to be submitted within the prescribed timeframe.
For disbursements, separate set of JEVs shall also be prepared which shall be
numbered in accordance with the prescribed codes.

Sec. 89. Preparation and Control of ALOBS for Special Education Fund.
The Allotment and Obligation Slips (ALOBS) pertaining to the fund shall be prepared
and signed by authorized official of the requesting department or office. This shall
be forwarded to the Budget Officer who, based on the approved school board
budget, shall verify the existence of appropriation for the proposed expenditure. He
shall certify the ALOBS to that effect and number the same in accordance with the
prescribed codes. This shall then be forwarded to the Chief Accountant who shall
certify as to obligations of allotments and shall record the same in the appropriate
Registry of Appropriations, Allotments and Obligations (RAAO). The ALOBS shall form
an integral part of the disbursement voucher/payroll and the certifications of the
local budget officer and the accountant thereon shall serve as their certification of
the disbursement as required by law.

Sec. 90. Certification as to Cash Availability. The Treasurer shall certify as

to cash availability for the fund in the Disbursement Voucher and Purchase
Request. For infrastructure projects undertaken by contract, the Treasurer shall
also certify as to cash availability in the contract. This certification shall serve as
the required certification under the law.
Sec. 91. Disbursement Procedures. Disbursement procedures including the
reports to be submitted by the accountable officer concerned are the same as
those for the General Fund. However, disbursements shall be approved by the
Local Chief Executive concerned as co-chairman of the local school board. The
division/city superintendent of schools or the district supervisor concerned, as the
case maybe, shall certify vouchers or payrolls as to validity, propriety, and legality
of the claim involved.

 Sec. 92. Inventory Process. The perpetual inventory method and the

moving average method shall likewise be adopted in the accounting and

costing of inventory. The general procedures, the forms and reports for the
holding of inventory shall also be followed. However, separate perpetual
inventory records and stock cards shall be maintained by the Accounting
Unit and the General Services Officer or the Treasurer, as the case maybe.
Likewise, separate weekly Summary for Supplies and Materials Issued
pertaining to the fund shall be prepared.
Sec. 93. Pro-forma Accounting Entries. Pro-forma accounting entries for

the fund, follows: