Question & AnswerQ&A (DBM JOINT CIRCULAR NO. 99-6)
The purpose is to prescribe guidelines and procedures for the reversion of accounts payable (A/Ps) pursuant to Executive Order No. 109, and to provide guidelines for the release of funds for legitimate obligations that arise after the reversion of A/Ps.
This circular applies to all National Government Agencies and Government Owned or Controlled Corporations maintaining a General Fund and Special Account in the General Fund, except Fiduciary Funds and Foreign Assisted Projects (FAPs) for the project's duration.
All documented A/Ps outstanding for two years shall be reverted to the Cumulative Result of Operations – Unappropriated (CROU), except ongoing capital outlay projects. Undocumented A/Ps shall be immediately reverted. Special provisions apply for FAPs and adjustments for unliquidated cash advances, prepayments, and deposits.
Yes, on-going construction projects with at least 15% overall accomplishment as of September 30, 1999, and which will be completed by December 31, 2000, may not be reverted immediately.
Agencies must prepare a Journal Voucher reverting all A/Ps outstanding for two years that do not fall under exceptions, certify it by the Chief Accountant, and submit it with a list of reverted A/Ps including corresponding Request for Obligation of Allotments Numbers to DBM and COA.
Legitimate claims determined through administrative processes must be charged against the appropriate lump sum provided. A Special Allotment Release Order (SARO) with specific non-reissuable and non-realignable conditions must be requested and issued for payment.
SAROs shall be effective only during the year issued, are treated as specific transaction release documents that cannot be re-issued, and cannot be realigned for other purposes.
If the SARO is not obligated during the year it was released, it cannot be re-issued for the same purpose.
The circular includes specific accounting entries attached as Annex A, including the use of subsidiary ledger accounts to identify allotments, obligations, and liquidations pertaining to reverted claims presented in the Trial Balance as short extensions of respective general ledger accounts.
Failure to comply with the circular's provisions will subject officials and employees to penalties under Section 43, Chapter 5, Book VI of E.O. No. 292, the Revised Administrative Code of the Philippines.
Fiduciary Funds, which are maintained as long as the purpose for their creation is not accomplished, and Foreign Assisted Projects (FAPs) during the project duration are exempt from the circular except as otherwise provided.
Agencies should review these payables, and make appropriate adjustments in the books of accounts in accordance with accounting and auditing rules and regulations.
Outstanding accounts payable for FAPs that remain unpaid two years after the project completion date per loan/grant documents shall be reverted to CROU.
The request must be supported by a certified copy of the specific Journal Voucher showing the A/P was reverted to CROU and justification for the non-payment in past years.
The circular takes effect immediately upon adoption and has continuing application. Agencies are required to pay only A/Ps outstanding for less than two years, except for the exemptions provided.