Republic of the Philippines DEPARTMENT OF BUDGET AND MANAGEMENT MALACANANG MANILA MAY 03 2016 MEMORANDUM FOR : The Director, DBM Regional Office CAR FROM : The Undersecretary for Budget Preparation and Execution Group SUBJECT : Policy Guidelines on Accounts Payable or Obligation Reverted and Due for Reversion to the Cumulative Results of Operations — Unappropriated (CROU) 1.0 This refers to your Memo dated March 14, 2016 regarding Obligations or Accounts Payable (A/P) which was reverted to the Cumulative Results of Operations - Unappropriated (CROU), as follows: Obligations/Accounts | Amount | Fund Source | Remarks Payable on Collections of Excise Taxes P 217,218 Charged against Reverted to from Burley and Other Native FY 2011GAA, _CROU as of Tobacco (RA 8240) RA10147 Dec. 31, 2013 Per representation, the amount of P217,218 was reverted to the CROU in pursuance to DBM-COA Joint Circular No. 99-6 dated November 13, 1999 inasmuch as the obligation for the same has remained outstanding for two years as of December 31, 2013. 2.0 The above concern was forwarded to BMB-SPIS for re-appropriation in budget of Allocations to Local Government Units (ALGU) for FY 2017 in view of the policy guidelines issued by Undersecretary Janet B. Abuel addressed to DBM RO-CAR copy furnished all DBM-Regional Offices (ROs) that DBM ROs should make representation with that Bureau in cases there are A/Ps already reverted to ROU for budget preparation purposes. 3.0 As already pointed out by the LS in its Memorandum dated June 25, 2015, the LGU beneficiaries may still claim thelr prior years’ shares in the tobacco excise taxes, thus, it may be prudent not to write-off LGU shares to avoid a situation wherein the shares written off will have to be re-appropriated in the subsequent appropriations law. ae PARMENT OF BUDGET | AND MANAGEMENT JONAL COORDINATION UNIT ev: Ono S$ -3-lb __ 390 y4.0 Consistent with Circular Letter (CL) No. 2004-2 dated January 26, 2004 (copy attached), please be guided by the following citations: 4.1 Section 1.1 - A commitment/obligation of the agency shall be considered valid and legal if committed or incurred within the prescriptive period of the covering allotment. 4.2 Section 1.4 ~ Consistent with the New Government Accounting System, A/Ps shall be classified according to the date the delivery of goods/rendition of services/acceptance of projects have been made, regardless of year these were obligated, provided such obligations are within the prescriptive period of the covering allotment. 5.0 However, inasmuch as the subject A/P was already reverted to CROU, it is suggested that coordination be made by your Office with the resident auditor for possible prior year's adjustment in your book of account to restore the subject reverted accounts payable. 6.0 For information and/or appropriate action. iZ M. CANTOR cc: All DBM Regional Directors leave faner