LETTER OF INSTRUCTIONS NO. 968

: Contracts must be signed by agency heads or other duly authorized officials only when there are available funds.
: The Chief Accountant must sign contracts as a witness, verifying the availability of funds from the agency's programmed appropriation, and his signature certifies such availability.
: Contracts without the signature of the Chief Accountant as witness shall be considered null and void.
: The Chief Accountant is responsible for verifying the availability of funds, as evidenced by programmed appropriations released by the Ministry of the Budget and received by the agency.
: Yes, contracts signed by Regional or District officials under formally delegated authority must also be witnessed by the responsible accounting official under the same terms and conditions.
: The Accounting Division must maintain a file of copies of all contracts.
: Accountants who sign contracts without available funds are subject to penalties under accounting and budget laws related to improper payments and certifications.
: The Commission on Audit examines agency contracts and verifies compliance with this Letter in addition to observing provisions of Section 86 of P.D. No. 1445 (Auditing Code of the Philippines).
: All contracts for capital projects, supply of commodities, services, equipment, maintenance contracts, and other agreements requiring payment charged to current operating or capital expenditure funds are covered.