Chapter 4: Expenditures, Disbursements, Accounting, and Accountability PDF

CHAPTER 4: EXPENDITURES, DISBURSEMENTS, ACCOUNTING AND ACCOUNTABILITY  SECTION 335. Prohibitions Against Expenditures for Religious or Private Purposes. No public money or property shall be appropriated or applied for religious or private purposes.  SECTIO...

CHAPTER 4: EXPENDITURES, DISBURSEMENTS, ACCOUNTING AND ACCOUNTABILITY  SECTION 335. Prohibitions Against Expenditures for Religious or Private Purposes. No public money or property shall be appropriated or applied for religious or private purposes.  SECTION 336. Use of Appropriated Funds and Savings Funds shall be available exclusively for the specific purpose for which they have been appropriated. No ordinance shall be passed authorizing any transfer of appropriations from one item to another. However, the local chief executive or the presiding officer of the Sanggunian concerned may, by ordinance, be authorized to augment any item in the approved annual budget for their respective offices from savings in other items within the same expense class of their respective appropriations. SECTION 337. Restriction Upon Limit of Disbursements - Disbursements in accordance with appropriations in the approved annual budget may be made from any local fund in the custody of the treasurer, but the total disbursements from any local fund shall in no case exceed fifty percent (50%) of the uncollected estimated revenue accruing to such local fund in addition to the actual collections: Provided, however, That no cash overdraft in any local fund shall be incurred at the end of the fiscal year SECTION 337. Restriction Upon Limit of Disbursements In case of emergency arising from a typhoon, earthquake, or any other calamity, the Sanggunian concerned may authorize the local treasurer to continue making disbursements from any local fund in his possession in excess of the limitations herein provided, but only for such purposes and amounts included in the approved annual budgets. Any overdraft which may be incurred at the end of the year in any local fund by virtue of the provisions hereof shall be covered with the first collections of the immediately succeeding fiscal year accruing to such local fund. SECTION 338. Prohibitions Against Advance Payments No money shall be paid on account of any contract under which no services have been rendered or goods delivered SECTION 339. Cash Advances - No cash advance shall be granted to any local official or employee, elective or appointive, unless made in accordance with the rules and regulations as the Commission on Audit may prescribe. SECTION 340. Persons Accountable for Local Government Funds Any officer of the local government unit whose duty permits or requires the possession or custody of local government funds shall be accountable and responsible for the safekeeping thereof in conformity with the provisions of this Title. Other local officers who, though not accountable by the nature of their duties, may likewise be similarly held accountable and responsible for local government funds through their participation in the use or application thereof. SECTION 341. Prohibitions Against Pecuniary Interest Without prejudice to criminal prosecution under applicable laws, any local treasurer, accountant, budget officer, or other accountable local officer having any pecuniary interest, direct or indirect, in any contract, work or other business of the local government unit of which he is an accountable officer shall be administratively liable therefor. SECTION 342. Liability for Acts Done Upon Direction of Superior Officer, or Upon Participation of Other Department Heads or Officers of Equivalent Rank Unless he registers his objection in writing, the local treasurer, accountant, budget officer, or other accountable officer shall not be relieved of liability for illegal or improper use or application or deposit of government funds or property by reason of his having acted upon the direction of a superior officer, elective or appointive, or upon participation of other department heads or officers of equivalent rank. The superior officer directing, or the department head participating in such illegal or improper use or application or deposit of government funds or property, shall be jointly and severally liable with the local treasurer, accountant, budget officer, or other accountable officer for the sum or property so illegally or improperly used, applied or deposited. SECTION 343. Prohibition Against Expenses for Reception and Entertainment - No money shall be appropriated, used, or paid for entertainment or reception except to the extent of the representation allowances authorized by law or for the reception of visiting dignitaries of foreign governments or foreign missions, or when expressly authorized by the President in specific cases. SECTION 344. Certification on, and Approval of, Vouchers No money shall be disbursed unless the local budget officer certifies to the existence of appropriation that has been legally made for the purpose, the local accountant has obligated said appropriation, and the local treasurer certifies to the availability of funds for the purpose. Vouchers and payrolls shall be certified to and approved by the head of the department or office who has administrative control of the fund concerned, as to validity, propriety, and legality of the claim involved. SECTION 344. Certification on, and Approval of, Vouchers Except in cases of disbursements involving regularly recurring administrative expenses such as payrolls for regular or permanent employees, expenses for light, water, telephone and telegraph services, remittances to government creditor agencies such as the GSIS, SSS, LBP, DBP, National Printing Office, Procurement Service of the DBM and others, approval of the disbursement voucher by the local chief executive himself shall be required whenever local funds are disbursed. In cases of special or trust funds, disbursements shall be approved by the administrator of the fund. In case of temporary absence or incapacity of the department head or chief of office, the officer next-in-rank shall automatically perform his function and he shall be fully responsible therefor. SECTION 345. Officials Authorized to Draw Checks in Settlement of Obligations - Checks in settlement of obligations shall be drawn by the local treasurer and countersigned by the local administrator. In case of temporary absence or incapacity of the foregoing officials, these duties shall devolve upon their immediate assistants. SECTION 346. Disbursements of Loca Funds and Statement of Accounts Disbursements shall be made in accordance with the ordinance authorizing the annual or supplemental appropriations without the prior approval of the Sanggunian concerned. Within thirty (30) days after the close of each month, the local accountant shall furnish the Sanggunian with such financial statements as may be prescribed by the Commission on Audit. In the case of the year-end statement of accounts, the period shall be sixty (60) days after the thirty-first (31st) of December.  SECTION 347. Rendition of Accounts Local treasurers, accountants and other local accountable officers shall render their accounts within such time, in such form, style, and content and under such as the Commission on Audit may prescribe. Provincial, city, and municipal auditors shall certify the balances arising in the accounts settled by them to the Chairman of the Commission on Audit and to the local treasurer, accountant, and other accountable officers. Copies of the certification shall be prepared and furnished other local officers who may be held jointly and severally liable for any loss or illegal, improper or unauthorized use or misappropriation of local funds or property. SECTION 348. Auditorial Visitation. The books, accounts, papers, and cash of local treasurer, accountant, budget officer, or other accountable officers shall at all times be open for inspection of the Commission on Audit or its duly authorized representative. In case an examination of the accounts of a local treasurer discloses a shortage in cash which should be on hand, it shall be the duty of the examining officer to seize the office and its contents, notify the Commission on Audit, the local chief executive concerned, and the local accountant. Thereupon, the examining officer shall immediately turn over to the accountableofficer next-inrank in the local treasury service, unless the said officer is likewise under investigation, the office of the treasurer and its contents, and close and render his accounts on the date of turnover. SECTION 348. Auditorial Visitation. In case the accountable officer next in rank is under investigation, the auditor shall take full possession of the office and its contents, close and render his accounts on the date of taking possession, and temporarily continue the public business of such office until such time that the local treasurer is restored or a successor has been duly designated. The local treasurer or accountable officer found with such shortage shall be automatically suspended from office. SECTION 349. Accounting for Revenues - Estimated revenues which remain unrealized at the close of the fiscal year shall not be booked or credited to the unappropriated surplus or any other account. SECTION 350. Accounting for Obligations All lawful expenditures and obligations incurred during a fiscal year shall be taken up in the accounts of that year. SECTION 351. General Liability for Unlawful Expenditures Expenditures of funds or use of property in violation of this Title and other laws shall be a personal liability of the official or employee responsible therefor. SECTION 353. The Official Fiscal Year The official fiscal year of local government units shall be the period beginning with the first day of January and ending with the thirty-first day of December of the same year.  SECTION 354. Administrative Issuances; Budget Operations Manual The Secretary of Budget and Management jointly with the Chairman of the Commission on Audit shall, within one (1) year from the effectivity of this Code, promulgate a Budget Operations Manual for local government units to improve and systematize methods, techniques, and procedures employed in budget preparation, authorization, execution, and accountability Thank you very much