Duterte directs agencies to revert accounts payable to state coffers

PRESIDENT Rodrigo R. Duterte has issued an executive order directing all national government agencies to revert all accounts payable which “remain outstanding for at least two years and for which no actual claim has been filed” to the national coffers.

Executive Secretary Salvador C. Medialdea, by authority of Mr. Duterte, signed on Aug. 13 Executive Order (EO) No. 87 titled: “Directing that all accounts payable which remain outstanding for two years or more in the books of national government agencies be reverted to the accumulated surplus or deficit of the general fund, or the cumulative result of operations of the national government.”

The President’s EO noted that various agencies continue to accrue prior years’ accounts payable in their respective books of accounts.

“The existence of prior years’ accounts payable in the books of accounts 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,” the EO said.

Accounts payable from prior years need to be reexamined and kept at manageable levels to facilitate the preparation of transparent, accountable and realistic disbursement and annual expenditure programs, it noted.

The directive covers all documented accounts payable for fiscal year 2016 and years prior.

“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.

As for the undocumented accounts payable, the EO said they shall automatically be reverted regardless of the year they were incurred.

“The recording of undocumented accounts payable in the books of accounts of agencies shall be strictly prohibited,” it added.

The order applies to all accounts payable of all national government agencies, except trust or fiduciary funds, for as long as the purposes for their creation have not been accomplished; and accounts payable corresponding to foreign-assisted projects.

Failure to comply with the EO, which takes effect immediately, shall be grounds for appropriate sanctions and/or administrative action, it said. — ALB