Law Summary
Creation and Functions of the Emergency Board
- Establishes an emergency board composed of key legislative and government officials including department chairmen and the Secretary of Finance (chairman).
- The board reviews applications for expenditures exceeding appropriated amounts submitted by government officers or bureau directors.
- Conducts investigations, hearing evidence, and evaluates if additional funds are necessary and whether preventive measures were taken.
- Can recommend additional funding up to one million pesos, subject to approval by presiding officers of both Houses of Congress and the Governor-General.
- The board's authority begins at the close of the legislative session when the Act is approved and lasts until October 16, 1917.
- The Secretary of Finance must report to the legislature on additional expenditures authorized by the emergency board at the next regular session.
Salary Limitations and Vacancy Filling Procedures
- Positions not covered by Act No. 2668 but with salaries of 3,000 pesos or more to be filled at a salary not exceeding 3,000 pesos per annum.
- Exceptions allowed only if Department Secretaries jointly determine higher salaries based on service needs, but never exceeding appropriated amounts.
Financial Prudence and Expenditure Control
- The Secretary of Finance must report to the Governor-General if anticipated revenues may not suffice to cover appropriations.
- The Governor-General may direct the emergency board to review fund conditions, expenditures, and projected revenues.
- The board advises on measures to reduce expenditures to remain within available funds.
- The Secretary of Finance may propose suspension (temporary or definitive) of expenses up to 30% of appropriations for any Bureau or Office, subject to legislative and Governor-General approval, and such suspension has the force of law.
Strict Adherence to Appropriation Purpose
- Funds appropriated must be used solely for the purposes specified; salary funds cannot be used for contingent expenses and vice versa.
- An unexpended balance of up to 10% of contingent expenses may be transferred within contingent expense items with Governor-General or department secretary approval.
- Appropriations are available for expenses arising from specific sections of the Administrative Code and laws including Public Bonding and Civil Service laws.
Reversion of Income and Surplus to General Fund
- All income accruing to government bureaus and offices must revert to the unappropriated surplus of the Insular Government unless otherwise stated.
- Net surplus of appropriations as of December 31, 1917, shall revert to the general fund and cannot be spent without new legislative enactment.
Limitations on Transportation Allowances and Equipment Purchases
- Employee allowances for use of personal transportation for official business limited to 20 pesos/month for horses and 30 pesos/month for motor vehicles or vessels.
- Contingent expenses and equipment funds cannot be used to purchase automobiles unless expressly authorized.
Effectivity of the Act
- The Act takes effect on January 1, 1917.