Question & AnswerQ&A (LETTER OF INSTRUCTION NO. 348)
The primary purpose is to instruct the closing of the books of accounts of government agencies as of December 31, 1975, and December 31, 1976, in preparation for the implementation of a Calendar Year Budget for 1977 under Presidential Decree No. 777.
The books of accounts are to be closed as of December 31, 1975, June 30, 1976 (regular closing), and December 31, 1976.
No, the unobligated appropriations as of December 31, 1975 should not revert to unappropriated surplus.
The Commission on Audit is directed to prepare financial statements covering government operations for Fiscal Year 1976 (ending June 30, 1976) and for Calendar Year 1976 (ending December 31, 1976).
The Budget Commission is tasked to review agency financial requirements and submit a budget for CY 1976, considering the reduced expenditure programs for FY 1976, operation results of the first semester of FY 1976, and the provisions of Presidential Decree No. 777 limiting appropriations for July-December 1976 to not more than 50% of programmed operating expenditures for FY 1976.
It limits the July-December 1976 appropriations to not more than 50% of the current operating expenditures programmed for FY 1976.
The Budget Commission is to review the continuing appropriations accumulated under existing appropriation laws and submit findings and recommendations related to CY 1976.
Both the Commission on Audit and the Budget Commission are directed to issue necessary rules and regulations to implement Presidential Decree No. 777 by January 5, 1976.
The directives are issued under the authority of President Ferdinand E. Marcos and are preparatory to implementing Presidential Decree No. 777 concerning the Calendar Year Budget system.