Declaring the Accrued Income From AFP Operations and Exercise of Regulatory Functions as Trust Receipts and Granting the Chief of Staff, AFP the Authority in the Use Thereof as an Exemption From Section 50 or Presidential Decree 1177

EXECUTIVE ORDER NO. 1002 January 25, 1985

DECLARING THE ACCRUED INCOME FROM AFP OPERATIONS AND EXERCISE OF REGULATORY FUNCTIONS AS TRUST RECEIPTS AND GRANTING THE CHIEF OF STAFF, AFP THE AUTHORITY IN THE USE THEREOF AS AN EXEMPTION FROM SECTION 50 OR PRESIDENTIAL DECREE 1177

WHEREAS, Section 50 of 1177 provides that all income from government instrumentalities shall accrue to the unappropriated surplus of the General Fund unless specifically provided by law;

WHEREAS, Section 50 of PD 1177 regulates the recording and application of special, fiduciary and trust funds;

WHEREAS, Section 40 of PD 1177 defines the use of special budgets for lump sum appropriations;

WHEREAS, Section 2 of the General Provisions, Batas Pambansa Blg. 866 further reiterates the provisions of Section 40 and Section 51 of PD 1177;

WHEREAS, the AFP realizes revenue from certain operations and in the implementation of statutory and regulatory functions;

WHEREAS, the AFP appropriations must be augmented with additional funds from and within the AFP sources to meet the pressing demands...

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Summary of Executive Order No. 1002

Authority to Use Income
- The accrued income of the AFP from its operations and exercise of regulatory functions is declared as AFP Trust Receipts, exempting it from Section 50 of PD 1177. (Section 1)
- The full amount of the cited income shall be deposited in an authorized depository bank. (Section 1)
- The Chief of Staff, AFP can use the income to augment AFP Appropriations without complying with the requirements of a special budget per Section 5 of PD 1177. (Section 1)

Authority to Collect Fees
- The AFP is authorized to collect payment for the direct cost of operation from various government agencies requesting the use of AFP equipment and facilities. (Section 2)
- The utilization of the income from fees shall be in accordance with Section 1. (Section 2)

Rules and Regulations
- The Minister of the Budget and the Minister of Defense shall issue rules and regulations to effectively carry out the provisions of the Executive Order, subject to the concurrence of the Chairman, Commission on Audit. (Section 3)