Agencies told to revert accounts payable to national fund

PRESIDENT Rodrigo Duterte has directed all government agencies to revert all their accounts payable that remain outstanding from 2016 or the previous years to the national government fund.

Duterte issued the order through Executive Order (EO) 87, which he signed on August 13 but was released by the Palace just on Friday, August 30.

"All documented accounts payable for fiscal year 2016 and years prior thereto shall be reverted to the Accumulated Surplus or Deficit of the General Fund, or the Cumulative Result of Operations of the National Goveenment," EO 87 stressed.

"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 President's order was in compliance with Republic Act 3526, which allows the reversion of government agencies's unliquidated balances of accounts payable thar have been outstanding for teo years or more to the general fund of the national government.

Duterte signed EO 87, as he acknowledged that the prior years' accounts payable of government agencies "immobilizes public funds, hampers efforts to determine the actual financial condition of the government, and hinders resource planning and allocation."

"Despite the laws and issuances on the reversion of accounts payable, various agencies continue to accrue prior years' accounts payable in their respective books of account," the order read.

EO 87 also noted that all accounts payable that are "undocumented or not covered" by perfected contracts on record, regardless of the year in which they were incurred, should likewise be "automatically" reverted.

The recording of undocumented accounts payable would be "strictly prohibited," the order said.

"In the event that reverted accounts payable are subsequently validated by competent authorities or by final and executory decisions, the funding therefore shall be determined by the Department of Budget and Management (DBM) subject to the applicable laws, rules and regulations," EO 87 said.

The order covers all accounts payable of national government agencies, except "(i) trust or fiduciary funds, for as long as the purposes for their crration habe not been accomplished; and (ii) accounts payable corresponding to foreign-assisted projects for the duration of the said projects."

Failure to comply with EO 87 would be a ground for appropriation sanctions or administrative sanction against responsible government officials and employees, as may be warranted under the circumstances.

The DBM, in consultation and coordination with the Commission on Audit, is tasked to prepare rules and regulations for the implementation of the order.

EO 87 takes effect immediately. (SunStar Philippines)


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