Question & AnswerQ&A (EXECUTIVE ORDER NO. 109)
The practice of booking undocumented accounts payable is strictly prohibited, and all undocumented accounts payable, regardless of the year they were incurred, must be reverted to the Cumulative Result of Operations.
The 'Cumulative Result of Operations' refers to the account formerly called the Unappropriated Surplus of the General Fund, which is used to revert unliquidated balances of accounts payable that are dormant or outstanding for a certain period.
Yes, fiduciary funds (trust funds) where the purposes for which the funds were created have not been accomplished and accounts payable under foreign-assisted projects for the duration of the said projects are exempted from this order.
Failure to comply with the provisions of the Order shall subject the responsible officials and employees to appropriate sanctions as circumstances may warrant.
The Department of Budget and Management (DBM) and the Commission on Audit (COA) shall jointly prepare the implementing rules and regulations.
The reversion is intended to address the proliferation of dormant and outstanding accounts payable, help establish a more realistic national government cash program, and determine actual cash requirements for accounts payable which are due and demandable.
The Department of Budget and Management shall provide a lump-sum fund in the Annual General Appropriations Act to cover legitimate obligations that may arise after the reversion. However, this does not revive claims barred by prescription or disallowed by final determinations.
No, the Order explicitly states that providing funds for legitimate obligations shall not be construed as an authority to revive claims already barred by prescription or disallowed by a final administrative or judicial determination.