Law Summary

SECTION 1: Authorization for Reversion of Unliquidated Balances

• Legal Principle/Provision: This section empowers the Auditor General to revert unliquidated balances of accounts payable, outstanding for two years or more, to the unappropriated surplus of the General Fund of the National Government.
• Key Definitions Introduced:
  • Unliquidated Balances: Amounts that have not been settled or accounted for in the financial records.
  • Accounts Payable: Obligations of the government to pay for goods or services received.
• Important Requirements/Procedures:
  • The Auditor General must notify the Head of the concerned Office or agency before reversion.
  • The balances must have been outstanding for two years or more.
  • No actual claims (administrative or judicial) should have been filed against these balances.
  • The balances must not be covered by perfected contracts on record.
• Relevant Timeframes/Deadlines:
  • Balances must be outstanding for a minimum of two years.
• Penalties/Liabilities: Not applicable in this section.
• Exceptions:
  • The provision does not apply to unliquidated balances in trust funds until the purposes of such funds have been fulfilled.

SECTION 2: Appropriation for Legitimate Obligations

• Legal Principle/Provision: This section provides for the appropriation of necessary funds from the National Treasury to settle legitimate obligations that may remain unpaid due to the reversion of funds as stated in Section 1.
• Key Definitions Introduced:
  • Legitimate Obligations: Valid debts or dues that the government is responsible for paying.
• Important Requirements/Procedures:
  • Funds must be appropriated from any unallocated resources in the National Treasury.
• Relevant Timeframes/Deadlines: Not specified in this section.
• Penalties/Liabilities:
  • The appropriation does not authorize the revival of claims that are already barred by prescription or disallowed by final administrative or judicial determination.

SECTION 3: Effectivity

• Legal Principle/Provision: This section states that the Act shall take effect immediately upon its approval.
• Key Definitions Introduced: Not applicable.
• Important Requirements/Procedures: The Act is effective from the date of approval.
• Relevant Timeframes/Deadlines: Immediate effectivity upon approval on June 20, 1963.
• Penalties/Liabilities: Not applicable.

Key Takeaways

• The Auditor General is authorized to revert unliquidated balances older than two years to the General Fund, provided no claims exist and the balances are not tied to trust funds.
• Necessary funds can be appropriated from the National Treasury to settle valid obligations affected by the reversion.
• This Act takes effect immediately upon approval, with no provisions for reviving barred claims.