QuestionsQuestions (Republic Act No. 11550)
Before a contract, agreement, or other obligation entailing expenditure of Insular funds amounting to two thousand pesos or more for construction, equipment, or supplies is entered into by the Philippine Islands’ government.
That there are sufficient funds duly appropriated to be expended for the object set forth in the proposed contract, in the Treasury, in excess of all outstanding contracts and obligations connected with or affecting the appropriation.
A written statement of all obligations incurred against the appropriation not yet presented for audit.
Upon receipt, the Insular Auditor must immediately make a written certificate indicating whether there are funds duly appropriated for carrying into execution the proposed contract in excess of all obligations and indebtedness chargeable to the appropriation.
No. The contract is unlawful; any such contract entered into contrary to Section 2 provisions is void and no claim or demand may be made against the government.
To the bureau/board/committee/officer who proposes to enter into the contract.
That the money required for the contract (or to pay the appropriation/expenditure) is in the Treasury to the credit of the fund from which it is to be drawn and is not appropriated for any other purpose.
The certified sum shall not thereafter be available for expenditure for any other purpose until the government (or province/municipality, as applicable) is discharged from the contract, agreement, or obligation.
The contract is void; no person may have any claim or demand thereunder against the government; and the law disqualifies the person who violated it from holding any office of trust or profit and makes him liable for damages resulting from the violation (with dismissal if in office).
No. Section 2 provides that no bureau/board/committee/officer has power to waive or qualify the limits of the Act or to fasten liability on the government or release a person from strict compliance, except as authorized under the Act.
For the purpose of entering into such contracts, ninety percent (90%) of the estimated revenues and receipts of the government for any fiscal year covered by the contract shall be deemed to be in the Treasury.
The requirements apply to contracts extending for more than one year, and before expenditures may be made in any year during the contract’s continuance, a certificate must first be obtained showing funds for carrying on the contract for that year are in the Treasury as required.
When an existing contract for works of construction and repair is altered or amended and the alteration/amendment involves expenditure of funds in excess of the original contract price.
Contracts must be executed in duplicate: one copy filed in the division of archives, patents, copyrights, and trademarks of the Executive Bureau; one copy furnished to the contractor; and a certified copy furnished by the Executive Secretary to the Insular Auditor and to the bureau/board/committee/officer that entered into the contract.
They must be accompanied by the Auditor’s certificate as required in the Act.
No. Section 5 states that no further certificate shall be required to be secured by the Purchasing Agent before entering into the contract for the purchase of the articles requisitioned.