QuestionsQuestions (EXECUTIVE ORDER NO. 91)
EO 91 cites: (1) Article VI, Section 25(1) of the 1987 Constitution (budget form/content/manner prescribed by law); (2) EO No. 292 (Administrative Code of 1987), Book VI, Chapter 5, Section 36 (operational cash budget); (3) EO No. 292, Book VI, Chapter 2, Section 3 (policy on national budget consistent with socio-economic development plan and results); and (4) Article VII, Section 17 of the Constitution (President’s control over executive departments).
CBS is effective 01 January 2019. Its purpose is to improve fiscal planning and ensure availability of cash resources for priority projects, by setting deadlines for obligations and execution within the fiscal year to speed up delivery of goods and services.
They are available for obligation and disbursement only until the end of each fiscal year (FY).
Obligations incurred by the National Government within each FY must be implemented during the same FY, and the corresponding goods/services must be delivered or rendered, inspected and accepted by the end of each FY.
Payments for obligations incurred are made until the end of the EPP, which is three (3) months after the end of the validity of appropriations against which the obligations were obligated, unless DBM determines another period upon consultation with relevant agencies.
They are available for obligation and disbursement until the end of the succeeding FY.
They are available for obligation and disbursement until fully expended.
They are not considered disbursed under Section 1 until the transferred amounts have been actually utilized to pay for goods delivered and services rendered, inspected and accepted.
Any unreleased appropriations and unobligated allotments at the end of the FY, as well as unpaid obligations and undisbursed funds at the end of the EPP, revert to the National Treasury and cannot be used again for expenditure except through subsequent legislative enactment.
Reversion is made to the National Treasury after the end of the succeeding FY.
Departments, bureaus and offices of the National Government (including constitutional offices enjoying fiscal autonomy), state universities and colleges, GOCCs, and LGUs.
They require issuance of a Multi-Year Contractual Authority (MYCA) by DBM for NGAs and qualified GOCCs prior to procurement; the MYCA covers the full project cost and is the basis of the approved budget for the contract.
They require a DBM letter of commitment to cover the National Government funding commitment.
EPA allows agencies to undertake procurement activities short of award, consistent with RA No. 9184 and its Revised IRR. EPA covers goods to be delivered, infrastructure to be implemented, or consulting services to be rendered in the following FY pending GAA approval.
EPA commence from the posting of the procurement opportunity (if required) until recommendation to the Head of the Procuring Entity as to award of the contract.
Infrastructure capital outlays (including subsidy releases to GOCCs for infrastructure) are valid for obligation until 31 Dec 2019; completion of construction/inspection/payment by 31 Dec 2020. Maintenance/other operating expenses and other capital outlays are valid for obligation until 31 Dec 2019; delivery/inspection/payment by 30 June 2020.