Government agencies have been ordered to revert all accounts payable outstanding for more than two years to the general fund of the national government.
In Executive Order No. 87, President Duterte noted that existence of prior years’ accounts payable of agencies “unnecessarily immobilizes public funds, hampers efforts to determine the actual financial condition of the national government, and hinders effective resource planning and allocation.”
“All documented accounts payable for fiscal year 2016 and years prior thereto shall be reverted to the Accumulate, Surplus, or Deficit of the General Fund, or the Cumulative Result of Operations of the National Government,” Duterte said in the order.
“Henceforth, all documented accounts payable which remain outstanding for at least two years for which no actual administrative or judicial claim has been filed, shall be subject to automatic reversion,” it added.
The latest presidential order came after discovering that various agencies continued to accrue prior year’s accounts payable in their books of accounts despite existing laws on the reversion.
Republic Act No. 3526 authorizes the reversion of unliquidated balances of accounts payable that have been outstanding for two years or more to the national government fund. (Genalyn Kabiling)
