Reversion of A/P to National Gov't Operations

Applies to all National Government Agencies (NGAs) and Government-Owned or Controlled Corporations (GOCCs) maintaining General Fund and Special Account in the General Fund.
Covers accounts payable (A/Ps) of all funds except Fiduciary Funds and Foreign Assisted Projects (FAPs), which are maintained for their intended duration.

All documented A/Ps outstanding for two (2) years are to be reverted to the Cumulative Result of Operations — Unappropriated (CROU), except ongoing capital outlay projects.
Reversion of reverting A/Ps as of the Circular date must be completed by year-end 1999.
All undocumented A/Ps must be immediately reverted to CROU.
Payables related to unliquidated cash advances, prepayments, and deposits to be reviewed with proper accounting adjustments.
FAPs with outstanding A/Ps over two years after project completion must be reverted to CROU.
FAPs under the direct payment scheme require review and possible issuance of Non-Cash Availment Authority.
Legitimate claims among reverted A/Ps will be charged against an appropriate lump-sum allotment.
Special Allotment Release Order (SARO) issuance conditions:
- Valid only during the year issued.
- Treated as specific transaction release documents and cannot be reissued.
- Cannot be realigned for other purposes.
Use of subsidiary ledger accounts to track allotments, obligations, and liquidations of reverted claims.

Agencies must review all recorded payables accounts (codes 8-81-100 to 8-81-900).
Documented A/Ps for capital outlays older than two years may be exempted from immediate reversion if:
- On-going projects have at least 15% accomplishment by September 30, 1999.
- Projects slated for completion by December 31, 2000.
Agencies must prepare Journal Vouchers (JV) to revert A/Ps outside exemptions and submit certified copies with supporting documents to DBM and COA.
Procedures for validating and paying legitimate reverted claims include:
- Claimants must file requests with substantiating documents.
- Agency heads request SARO issuance from DBM supported by certified JV copies and justifications.
- DBM releases SARO and Notice of Cash Allocation from appropriate lump-sum funds.
- Agencies process claim payments accordingly.

Relevant accounting entries for reversion and related processes are set forth in Annex A of the Circular.

The Circular applies continuously.
Agencies shall only pay A/Ps outstanding less than two years, except as exempted.

Non-compliance by officials or employees will lead to penalties under Section 43, Chapter 5, Book VI of E.O. No. 292 (Revised Administrative Code).

All existing circulars and issuances inconsistent with this Circular are repealed or modified accordingly.

Issues not covered shall be referred to the Department of Budget and Management (DBM) for joint resolution with the Commission on Audit (COA).