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FISCAL OPERATIONSThis chapter presents the multiple fiscal operations that are being carried out atFinance Service. Claims and Examination, Checking Accounts, Pay and Allowances, SalaryAssignment, and Pension and Gratuity are sections that fall under the Disbursement Division ofFinance Service. These section offices are discussed here in detail with accompanying flowchartof the transactions that they deal with so that the PNP personnel knows immediatelywhere to go and what to do in his financial dealings with these offices.Section 3-1 Disbursement Divisiona. Claims Examination Section. This Section receives vouchers/payrollsrepresenting payment of claims chargeable against PNP obligations, examinesthe legality, validity and the completeness of all supporting papers/documentsattached to the claims which are in line with the existing and auditingrequirements; and verifies claims to their individual index to determine whetheralready paid or not to avoid double payment.1) Kinds of Claims presented to Claims Exam Sec for settlement ofpayment.(a)Retirement Benefits:(1) Compulsory Retirement;(2) Optional Retirement(b)(c)(d)(e)Death BenefitsSeparation BenefitsMiscellaneous and Other Operating ExpensesReimbursement of Hospitalization Expense2) Who are considered Retired PNP Personnel?(a) Compulsory Retirement. Pursuant to Sec 39 & 74 of RA 6975in relation to Sec 34 of RA 8551: Officers/PNCO’s, who uponattaining fifty six (56) years of age with at least ten (10) yearsof active service prior to retirement are compulsory retiredform the PNP service. However, NAPOLCOM may allow theretention in the service of any officer with the rank of CSUPT,DIRECTOR, AND DEP DIR GEN for un extendable period ofone (1) year.(b)Optional Retirement. Pursuant to Sec 40 & 74 of RA 6975: Upon accumulation of atleast twenty (20) years of satisfactory active service, an officer or non officer at his ownrequest and with the approval of the Commission, shall be retired from the service andentitled to receive benefits provided by law.

SP 05 - 100(1) Benefits due for Compulsory and Optional Retirement:• 36 Months Lump sum/ Outright Pension (Ref: Letter Directive # 2000-1dtd 17 Nov 2000)• Commutation of Leave(2) Requirements for Compulsory and Optional Retirement:• Retirement Order• Updated service record• Latest Promotion Order• Latest Attested Appointment• Certificate of Last Payment• OMBUDSMAN Clearance• IAS clearance• DC Clearance• DL Clearance• NAPOLCOM clearance• Latest Assets and Liabilities(c)Total Permanent Physical Disability pur Sec 35 of RA 8551. An officer or nonofficer who is permanently and totally disabled as a result of injuries sufferedor sickness contracted in the performance of his duty as duly certified by theNAPOLCOM, upon finding and certification by the appropriate medical officer,that the extent of the disability or sickness renders such member unfit orunable to further perform the duties of his position, shall be entitled to one (1)year’s salary and to lifetime pension equivalent to eighty percent (80%) of hislast salary, in addition to other benefits as provided under existinglaws.“;should such member who has been retired under permanent totaldisability under this section die within five (5) years from his retirement, hissurviving legal spouse or if there be none, the surviving dependent legitimatechildren shall be entitled to the pension for the remainder of the five (5) yearsguaranteed period.”(1) Benefits due for TPPD:• Retirement Gratuity• Commutation of Accrued Leave(2) Requirements for TPPD: (Same requirements as Compulsory andOptional Retirement)• Retirement Order• Updated service record• Latest Promotion Order• Latest Attested Appointment

• Certificate of Last Payment• OMBUDSMAN Clearance• IAS clearance• DC Clearance• DL Clearance• NAPOLCOM clearance• Latest Assets and Liabilities(d)Death Benefits of the PNP Personnel in the Active Service:(1) Death Benefits under Sec 10 & 15 of NAPOLCOM Res No. 8. Thesurvivors of an Officer and PNCO retired /separated under this Sectionshall be entitled to a monthly annuity or pension equivalent to fifty percent (50%) of his B/P and L/P based on the grade next higher than hisseparation grade.• Death Benefits due:• Monthly Pension• Commutation of Accrued Leave• Requirements for Death Benefits:• Posthumous order• Decree of entitlement and distribution from Legal Service• Death Certificate• Updated Service record• Marriage contract if married, if single parent’s marriage contract• Birth certificate of all minor legitimate and illegitimate children• Affidavit of guardianship if there’s any• LOD Board Proceedings/Approved LOD report• Investigation Report from Unit re death of Personnel• Certificate of Beneficiaries from RMD, DPRM• Latest promotion order• Certificate of Last Payment• DC/DL clearance• Latest Statement of assets and Liabilities(2) Payable by NAPOLCOM under PD 1184. If the member of the PNP is killed ordied from injuries suffered or sickness contracted in line of duty, the survivingspouse or in the absence the surviving dependents/ legitimate children shallbe entitled the following:• Gratuity equivalent to one (1) year salary in no case less than OneThousand (P 1,000.00) Pesos.

SP 05 - 100• Burial Expenses equivalent to three (3) months salary but in no case less than P 1,000.00• Eighty (80%) percent of the monthly salary of the deceased is given to thesurviving dependent/ legitimate children for five (5) years.(3) Payable by GSIS under PD 1146. If a member is qualified under old age pensionat the time of death – Sixty year (60) of age with Fifteen (15) years service, abasic monthly pension guaranteed for five (5) years maybe collected in lumpsum. After the guaranteed period, the survivor shall receive the survivorshippension so long as they qualify:• Formula:Basic Survivorship Pension= Fifty Percent (50%) of the basicmonthly pensionDependent Pension= Ten Percent (10%) of the basic monthly pension for everydependent child not exceeding 5, counting from the youngest andwithout substitution.(4) Payable MBAI. Upon the death of the PCO or PNCO, the survivor shall receive anamount corresponding to the age and permanent rank of the deceased pursuant toSOP no 1 HPC dated February 10, 1982 Subject: Policies and ProceduresRelative to the upgrading of MBAI Basic Insurance Coverage of members of thePNP. Likewise, the survivor shall receive additional benefits if the deceased hadbeen covered by optional Insurance.(e) Resignation or separation from the service. Under Sec 1 of EO 1077 dtd 9Jan 86, any officer or employee of the government who retired voluntarily,resigns or was separated from the service through no fault of his own,shall be entitled to the commutation of all accumulated vacation and sickleaves on his credit exclusives of Saturdays, Sundays and Holidayswithout limitations as to the number of days of vacation and sick leavesthat have may be accumulated.

UNIT/CLAIMANTCESBudget and Fiscal,DPRMFISCAL DIV, DC1. Preparation of Voucher with Certificationby Chief of Office and Indorsement2. Receipt of DV/PR for processing/indexing/request for fund support3. Programming/reprocessing andvalidation of claim4. Issuance of NFABFS5. Release of NFA/ALOBS preparationACCTG DIV, DCMGMT DIV, DC6. Issuance of Obligation number/signatureof ALOBS7. Pre-AuditBUDGET DIV, DC8. Issuance of NCAACCTG DIV, DCCAS9. Journalization/Signature ofChief Accounting Service10. Issuance of ChecksDC11. Signature of CheckCAS12. Counter signature of check/ReleasingCLAIMANT13. Release of CheckFigure 3. The flow of PS claims

E N D U S E RSP 05 - 1001 . P re p a ra tio n o f P O /W O fo r a p p ro va lF S2 . P ro ce ssingE N D U S E R3 . F und ingAC C T G D IV , D C4 . O b lig a tio n o f A llo tm e ntM G M T D IV , D C5 . P re -A ud itB U D G E T D IV , D C6 . Issua nce o f NC AAC C T G D IV , D C7 . Jo urna liza tio nF S8 . C he ck issua nceD C9 . C o unte r sig ningF S1 0 . C he ck sig ning is a s fo llo ws:? P 3 0 0 ,0 0 0 .0 0 - F S O /RF S O> P 3 0 0 ,0 0 0 .0 0F S NHQA ll TR C la im sFigure 3. The flow of MOOE claims