Distribution of Net Profits

Section 1. Distribution of the Net Profits Of the MIC

The MIC shall be exempt from Republic Act No. 7656, “Dividends Law of 1994.”

The Board can decide the profits to be distributed for each Of the GFls and how much thereof shall be carried to its surplus.

ARTICLE 9

Financial Reporting Framework and Audit of Records

Section 30. Financial Reporting

The financial statements and reports shall be prepared, upon the advice of the Advisory Body, in accordance with pertinent provisions of this Act and its IRR, and international financial reporting standards and principles.

Section 31. Auditor

The Board shall appoint an auditor, who shall provide written interim financial and management reports as requested by the Advisory Body.

Section 32. External Auditor

The Board shall engage, for each accounting period or as soon as practicable after the commencement of the relevant accounting period, an internationally recognized auditing firm to be the External Auditor Of the Fund and to audit its financial statements.

The Extemal Auditor shall:

• a. Work for 3 years
• b. Be eligible for re-engagement
• c. Hold office as determined by the Board

Section 33. Commission on Audit

The books and accounts Of the MIC shall be subject to the examination and audit of the Commission on Audit pursuant to Article 9 of the 1987 Philippine Constitution. All financial transactions shall be governed by the applicable government laws, rules, and regulations.

ARTICLE 10: Reports and Records

Section 34. Reporting to the President Of the Philippines

The MIF investmeutzichvitiesshallbe reported to the President not later than seven (7) days after each quarter. The MIC shall prepare its financial statements and submit copies thereof to the President, for information, not later than 7 days after each month.

Section35. Provision for Access Rights and Retention Period Of Records

The records on MIC investment activities shall be secured and maintained pursuant to the rules of the National Archives of the Philippines. Access to the records shall be upon approval Of the Board of Directors or by express provision of the law.

ARTICLE 11: Miscellaneous Provisions

Section 36. Appropriations

25 Billion pesos is appropriated to cover the initial contribution Of the National Government to the MIF, to be sourced from funds actually available as certified by the National Treasurer.

Thereafter, such sums as may be necessary for the additional contributions of the National Government to the MIF shall be included in the annual General Appropriations Act or supplemental appropriations, as the case may be, subject to the budget preparation process, and authorization by Congress.