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Revenue Allocation
In accordance to its Charter, the PCSO generates its revenues
from the sale of sweepstakes and lotto tickets. To arrive at the amount of net receipts,
the printing cost which shall not exceed two percent (2%) of the gross receipts,
is deducted from the gross receipts generated from the sales of sweepstakes and
lotto tickets. Section 6 of RA 1169, as amended, specifically allocates the resulting
net receipts or revenues of the PCSO.
In other words, out of every one peso (Php1.00) revenue,
approximately 0.55, 0.30, 0.15 centavos go to the Prize, Charity and Operating Funds,
respectively. Each allocation has its own specific purpose and usage, so that diversion
or inter-fund transfers are illegal and in violation of the PCSO Charter.
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The Prize
Fund is used for the payment of prizes, including those for owners and jockeys
of running horses and sellers of winning tickets. This is a trust liability account.
Unclaimed prizes or balances in Prize Fund reverts and forms part of the Charity
Fund after one (1) year.
The Charity
Fund is also a trust and liability account and is used exclusively to finance
and support health programs, medical assistance and services and/or charities of
national character. Presently, any disbursements from the Charity Fund must not
only be authorized by the PCSO Board of Directors but must also be approved by the
Office of the President, regardless of the amount thereof.
The PCSO is also extending financial assistance and contributions
to certain national programs created as a result of various legislative enactments.
The Operating
Fund forms 15% of the revenue allocation, which is used to support the day-to-day
operating/maintenance and capital expenditures of the PCSO. If there is a balance
on the Operating Fund at the end of the fiscal year, it reverts and forms part of
the Charity Fund.
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