Certification Requirement and Invalidity of Unauthorized Contracts
- No contract entailing ₱2,000 or more can be entered without the Insular Auditor's certification that funds are available and not otherwise appropriated.
- Certification must be attached to and become part of the contract.
- Certified funds cannot be reallocated until the contract is fully discharged.
- Contracts made without such certification are void; no claims can be made against the Government or its subdivisions based on unauthorized contracts.
- No authority is granted to waive or circumvent these limits or release contractual obligations without proper compliance.
- Violations result in disqualification from holding public office and personal liability for damages to the Government, including dismissal if in office.
- For contracts spanning multiple years, 90% of estimated government revenues for the fiscal year is deemed available, but annual certification for funds is still required before expenditures each year.
Procedures for Amendments to Existing Contracts
- Alterations or amendments increasing the expenditure beyond the original contract price require the same certification procedure as initial contracts.
Execution and Filing of Construction and Repair Contracts
- Contracts must be executed in duplicate.
- One copy to be filed with the Executive Bureau’s division of archives, patents, copyrights, and trademarks.
- One copy given to the contractor.
- Certified copies provided to the Insular Auditor and the contracting Bureau, Board, committee, or officer.
Requisition Procedures and Certification for Purchases
- Requisitions for purchases amounting to ₱2,000 or more must be accompanied by the Auditor’s certification.
- Once certified for requisitions, the Purchasing Agent need not obtain another certificate before entering into the purchase contract.