Mandatory Certification Before Entering Contracts
- No government entity (Bureau, Board, committee, or officer) of the Philippine Islands or its provinces/municipalities may enter contracts or obligations over ₱2,000 without prior certification by the Insular Auditor.
- Certification confirms funds are available in the Treasury and properly appropriated for the contract's intended purpose.
- The certification must be attached to the contract and becomes a part thereof.
- Certified funds are reserved exclusively for the contract and cannot be diverted for other uses until the contract is fulfilled.
- Contracts entered without this certification are null and void, and no claims may be made thereunder against the government or political subdivisions.
- Government officers cannot waive the requirements or impose liabilities beyond what the law permits.
- Violation results in disqualification from office, liability for damages, and mandatory dismissal if already in office.
- Ninety percent of estimated revenues for the fiscal year are presumed to be in the Treasury for contract purposes.
- Certification rules also apply annually to contracts extending beyond one year.
Alterations or Amendments to Existing Contracts
- Any changes to existing construction or repair contracts that increase expenditures beyond the original price must follow the same certification procedure.
Contract Execution and Filing Requirements
- Construction and repair contracts must be executed in duplicate.
- One copy goes to the Executive Bureau's archives, one is furnished to the contractor.
- Certified copies must be provided to the Insular Auditor and the contracting government body by the Executive Secretary.
Requisitions for Supplies and Purchases
- Requisitions for ₱2,000 or more from government bureaus or local government units require the Auditor's certification.
- Once certified, the Purchasing Agent does not need to secure additional certification before procurement.