Manila Bulletin
Revert all accounts payable outstanding for over two years to gov't general fund, Palace orders
Revert all accounts payable outstanding for over two years to gov't general fund, Palace orders
Revert all accounts payable outstanding for over two years to gov't general fund, Palace orders
Published Aug 30, 2019 06:00 pm
By Genalyn Kabiling
Government agencies have been ordered to revert all accounts payable outstanding for more than two years to the general fund of the national government.
Malacañang Palace. (Photo by Richard V. Viñas / MANILA BULLETIN FILE PHOTO)
In Executive Order No. 87, President Duterte noted that the existence of prior years' accounts payable of agencies “unnecessarily immobilizes public funds, hampers efforts to determine the actual financial condition of the national government, and hinders effective resource planning and allocation.”
“All documented accounts payable for fiscal year 2016 and years prior thereto shall be reverted to the Accumulate, Surplus or Deficit of the General Fund, or the Cumulative Result of Operations of the National Government,” the order read.
“Henceforth, all documented accounts payable which remain outstanding for at least two years for which no actual administrative or judicial claim has been filed, shall be subject to automatic reversion,” it added.
The latest presidential order came after it was discovered that various agencies continue to accrue prior year's accounts payable in their books of accounts despite existing laws on the reversion.
Republic Act No. 3526 authorizes the reversion of unliquidated balances of accounts payable, which have been outstanding for two years or more, to the national government fund.
“To facilitate the preparation of transparent, accountable, realistic disbursement and annual expenditure programs, the accounts payable from prior years need to be reexamined and kept at manageable levels, and the actual cash requirements therefore need to be ascertained,” the President's order read.
In EO 87, all accounts payable that are “undocumented or not covered” by perfected contracts on record, should likewise be automatically reverted. The recording of undocumented accounts payable shall be strictly prohibited.
The President's order covers all accounts payable of national government agencies, “except trust or fiduciary funds for as long as the purposes for their creation have not been accomplished and accounts payable corresponding to foreign-assisted projects for the duration of the projects.”
The order warned that failure to comply will be a ground for appropriate sanctions and/or administrative action against responsible government officials and employees.
The EO, signed last August 13, took effect immediately.
Malacañang Palace. (Photo by Richard V. Viñas / MANILA BULLETIN FILE PHOTO)
In Executive Order No. 87, President Duterte noted that the existence of prior years' accounts payable of agencies “unnecessarily immobilizes public funds, hampers efforts to determine the actual financial condition of the national government, and hinders effective resource planning and allocation.”
“All documented accounts payable for fiscal year 2016 and years prior thereto shall be reverted to the Accumulate, Surplus or Deficit of the General Fund, or the Cumulative Result of Operations of the National Government,” the order read.
“Henceforth, all documented accounts payable which remain outstanding for at least two years for which no actual administrative or judicial claim has been filed, shall be subject to automatic reversion,” it added.
The latest presidential order came after it was discovered that various agencies continue to accrue prior year's accounts payable in their books of accounts despite existing laws on the reversion.
Republic Act No. 3526 authorizes the reversion of unliquidated balances of accounts payable, which have been outstanding for two years or more, to the national government fund.
“To facilitate the preparation of transparent, accountable, realistic disbursement and annual expenditure programs, the accounts payable from prior years need to be reexamined and kept at manageable levels, and the actual cash requirements therefore need to be ascertained,” the President's order read.
In EO 87, all accounts payable that are “undocumented or not covered” by perfected contracts on record, should likewise be automatically reverted. The recording of undocumented accounts payable shall be strictly prohibited.
The President's order covers all accounts payable of national government agencies, “except trust or fiduciary funds for as long as the purposes for their creation have not been accomplished and accounts payable corresponding to foreign-assisted projects for the duration of the projects.”
The order warned that failure to comply will be a ground for appropriate sanctions and/or administrative action against responsible government officials and employees.
The EO, signed last August 13, took effect immediately.