QuestionsQuestions (EXECUTIVE ORDER NO. 87)
It directs the reversion to the General Fund’s accumulated surplus/deficit or the National Government’s cumulative result of operations all accounts payable that remain outstanding for two years or more, and it also mandates the automatic reversion of undocumented accounts payable, to improve transparency and prevent immobilization of public funds.
It cites Republic Act No. 3526 (reversion of unliquidated balances of accounts payable outstanding for two years or more) and Presidential Decree No. 1445 (Government Auditing Code of the Philippines, 1978).
All documented accounts payable for FY 2016 and earlier are to be reverted to the Accumulated Surplus or Deficit of the General Fund, or the Cumulative Result of Operations of the National Government. Additionally, any documented accounts payable that remain outstanding for at least two years, with no actual administrative or judicial claim filed, are subject to automatic reversion.
The documented accounts payable must remain outstanding for at least two years and for which no actual administrative or judicial claim has been filed.
All such accounts payable are automatically reverted regardless of when they were incurred, and recording them in the books of accounts is strictly prohibited.
It applies regardless of the year in which the accounts payable were incurred.
If reverted accounts payable are later validated by competent authorities or by final and executory decisions, DBM will determine the funding source, subject to applicable laws, rules, and regulations.
No. Section 4 expressly states that EO No. 87 does not authorize revival or validation of claims and accounts payable already barred by prescription or disallowed by final judicial or administrative determination.
DBM is tasked to determine the funding for validated claims (Section 3) and, with consultation/coordination with COA, to prepare the implementing rules and regulations for the implementation of EO No. 87 (Section 7).
COA participates with DBM in preparing the implementing rules and regulations through consultation and/or coordination (Section 7).
It does not apply to (i) trust or fiduciary funds for as long as the purposes for their creation have not been accomplished, and (ii) accounts payable corresponding to foreign-assisted projects for the duration of the said projects.
Noncompliance is a ground for appropriate sanctions and/or administrative action against responsible government officials and employees, as warranted by the circumstances.
It takes effect immediately.
Reverted accounts payable are to be transferred to the Accumulated Surplus or Deficit of the General Fund, or to the Cumulative Result of Operations of the National Government.
It seeks to reexamine prior years’ accounts payable, keep them at manageable levels, and ascertain actual cash requirements by removing outdated or undocumented obligations from agency books through reversion.
Whether the account payable is supported by proper documentation and/or is covered by a perfected contract on record—because undocumented or not covered by perfected contracts must not be recorded and will be automatically reverted.