Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 767)
The addressees are the Minister of the Budget, the Minister of Finance, the Acting Chairman of the Commission on Audit, and the National Treasurer.
The Minister of the Budget is tasked to evaluate fiscal procedures in various agencies, design a uniform system for budget execution and accountability, review the organization and staffing of budget and accounting offices, and conduct studies for improvement at central and regional levels.
The Minister of Finance and the National Treasurer are instructed to reassess the system for preparing and controlling Treasury Warrants and TCAA to ensure prompt reconciliation of cash records and control of Treasury Warrants within approved cash disbursement ceilings.
The Acting Chairman must ensure funds are used according to their approved purposes without diversion, prevent unauthorized reserves on released funds, and ensure contracts are not entered into without available obligational authority and approved cash disbursement ceilings.
They must ensure the availability of funds for the contract, certified by the Chief Accountant as being from allotments actually released by the Ministry of the Budget.
No, private contractors are not allowed to undertake government work at their own risk, as contracts are only valid when funds availability is certified.
The Minister of the Budget is to study and recommend a system of direct releases of funds—both obligational authority and cash disbursement ceilings—to regional offices of national government agencies, including schools and hospitals.
The Advisory Board of the Budget Improvement Project (BIP) coordinates the studies and work assigned.
Contracts are considered invalid or non-binding without certification of fund availability, and no Treasury Warrants may be issued without an approved Cash Disbursement Ceiling.