Rationale for Reversion
- Agencies continue to accrue prior years' accounts payable despite laws.
- Reversion facilitates transparent, accountable, and realistic expenditure programs.
- Prior years' payables immobilize public funds and hinder government financial planning.
Section 1: Reversion of Documented Accounts Payable
- All documented accounts payable from fiscal year 2016 and prior must be reverted to the Accumulated Surplus or Deficit of the General Fund or Cumulative Result of Operations.
- Future documented payables outstanding for two years without claims will be automatically reverted.
Section 2: Treatment of Undocumented Accounts Payable
- All undocumented accounts payable, regardless of age, are subject to automatic reversion.
- Prohibits recording undocumented payables in agency books.
Section 3: Funding for Validated Claims
- If reverted payables are later validated by competent authorities or final decisions, the Department of Budget and Management (DBM) determines funding.
- Funding subject to applicable laws, rules, and regulations.
Section 4: Prescribed and Disallowed Claims
- The reversion does not authorize revival or validation of claims barred by prescription or disallowed by final decisions.
Section 5: Scope and Exceptions
- Applies to all accounts payable of all National Government Agencies.
- Exceptions include trust or fiduciary funds (while their purpose remains unfinished) and accounts related to foreign-assisted projects during the project duration.
Section 6: Sanctions for Non-Compliance
- Failure to comply may result in sanctions or administrative actions against responsible officials/employees.
Section 7: Implementing Rules and Regulations
- DBM, in coordination with the Commission on Audit, will prepare rules and regulations for implementation.
Section 8: Effectivity
- The Order takes effect immediately upon signing.