QuestionsQuestions (LETTER OF INSTRUCTIONS NO. 968)
To ensure that government contracts—especially those requiring payment from agency operating or capital funds—are signed only when there are available funds, and to properly support contract recording through fund availability verification.
All contracts for capital projects and for the supply of commodities and services, including equipment, maintenance contracts, and other agreements requiring payment chargeable to agency current operating or capital expenditure funds.
The agency head or other duly authorized official may sign, but only when there are available funds.
The Chief Accountant must sign the contract as witness, and verify that funds are available as evidenced by a programmed appropriation released by the Ministry of Budget and received by the agency.
The contract without such witness shall be considered null and void.
Funds must be evidenced by a programmed appropriation released by the Ministry of Budget and received by the agency from which the contract will ultimately be payable.
Yes. It is the Chief Accountant’s responsibility to verify fund availability, and the signature constitutes certification to that effect.
They must be reviewed and signed or initialed by the Chief Accountant in the manner provided in the LOI’s requirements for contract signing and witnessing.
Yes, if they sign under formally delegated authority and pertinent rules and regulations; in such case, the responsible accounting official of the region or district must witness under the same terms and conditions.
The Accounting Division of agencies must maintain a file of copies of contracts.
They may be subject to penalties under accounting and budget laws pertaining to such payments and certifications.
COA, during agency audits, must examine agency contracts and verify compliance with LOI No. 968, in addition to observing Section 86 of PD No. 1445.
LOI No. 968 directs COA to observe Section 86 of PD No. 1445 while also checking compliance with LOI No. 968 when examining contracts.
Because government agencies contract for projects and services routinely; fund availability ensures proper accounting, prevents unauthorized commitments, and supports proper recording and payment accountability.
No. It expressly requires that contracts be signed only when there are available funds, and certification is based on released programmed appropriation received by the agency.