Contract Fund Certification Requirements

The certification rule applies to contracts involving an expenditure by the Insular Government of three thousand pesos or more.
The certification rule applies to contracts involving an expenditure by a province, municipality, chartered city, or municipal district of two thousand pesos or more.
The certification rule governs contracts that are to be entered into or authorized by the government.

For an Insular Government contract of PHP 3,000 or more, the Insular Auditor must certify before the contract is entered into or authorized.
The Insular Auditor’s certification must state that funds have been duly appropriated for the purpose of the contract.
The certification must also state that the amount necessary to cover the proposed contract is available for expenditure on account of that appropriation.
When applying for the certificate, the officer applying must submit:
- a copy of the proposed contract or agreement, and
- a written statement showing all obligations not yet presented for audit that have been incurred against the appropriation chargeable to the proposed contract.
Once signed, the certificate must be attached to and become a part of the proposed contract.
The certified sum must not thereafter be available for expenditure for any other purpose until the Government is discharged from the contract.

For a contract of PHP 2,000 or more involving a province, municipality, chartered city, or municipal district, the treasurer of the concerned political division must certify before the contract is entered into or authorized.
The treasurer’s certification must state that funds have been duly appropriated for the contract’s purpose.
The treasurer’s certification must also state that the amount necessary to cover the proposed contract is available for expenditure on account of that appropriation.
Once signed, the certificate must be attached to and become a part of the proposed contract.
The certified sum must not thereafter be available for expenditure for any other purpose until the contract is lawfully abrogated or discharged.

The Insular Auditor certification requirement does not apply to a contract for personal service.
The Insular Auditor certification requirement does not apply to a contract for supplies to be carried in stock.
The local treasurer certification requirement is likewise framed with an exception for contracts for supplies to be carried in stock.

For purposes of the required certificate, 90% of the estimated revenues and receipts that should accrue during the current fiscal year but are yet uncollected are deemed to be in the treasury of the relevant branch of government.
This deemed availability applies against the branch of government to which the obligation would create a charge.