Question & AnswerQ&A (Act No. 2119)
The main purpose of Act No. 2119 is to require a certificate from the Insular Auditor showing that funds duly appropriated are available in the Treasury for the purpose indicated in a proposed government contract entailing the expenditure of money amounting to two thousand pesos or more.
The Bureau, Board, committee, or officer proposing to enter into the contract must submit a copy of the proposed contract to the Insular Auditor along with a written statement of all outstanding obligations incurred against the appropriation.
Any proposed contract or obligation entailing the expenditure of two thousand pesos or more from Insular funds triggers this requirement.
The Insular Auditor must certify in writing that there are sufficient funds duly appropriated to cover the contract amount, which are available in the Treasury in excess of all outstanding contracts and obligations related to the appropriation.
Such contract, agreement, or obligation is void, and no claim or demand arising therefrom can be made against the government or its political subdivisions. Also, responsible persons may be disqualified from public office and held liable for damages.
Persons violating the law are disqualified from holding any office of trust or profit in the Philippine Government or its subdivisions, liable for damages to the government or locality, and dismissed from office if already holding one.
No, no Bureau, Board, committee, or officer has the power to waive or qualify the limits or to fasten any liability on the government beyond the limits set by this Act.
Yes, for contracts extending for more than one year, before expenditures are made for any subsequent year, the Insular Auditor's certificate must again confirm that funds for that year are in the Treasury.
The same procedure of securing the Insular Auditor's certificate showing funds available must be followed if the alteration or amendment involves an expenditure exceeding the original contract price.
All such contracts must be executed in duplicate, with one copy filed in the division of archives of the Executive Bureau, another copy given to the contractor, and certified copies furnished to the Insular Auditor and the agency that entered into the contract.
Yes, requisitions must be accompanied by the Auditor's certificate showing funds are available, and no additional certificate is required before the Purchasing Agent enters into the contract for the purchase.