Directing the deposit of cash balances to the National treasury

EXECUTIVE ORDER NO. 338 May 17, 1996

DIRECTING THE DEPOSIT OF CASH BALANCES TO THE NATIONAL TREASURY

WHEREAS, huge amounts of cash have built up under the "Cash-in-banks" account of various offices and agencies of the government as shown in their final trial balances as of the end of CY 1995;

WHEREAS, the National Government continues to borrow when there are huge cash immobilized in various accounts of agencies deposited in authorized government depository banks;

WHEREAS, Section 5 of the General Provisions of RA No. 8174, the CY 1996 General Appropriations Act (GAA), provides that "Receipts from non-tax sources authorized by law for specific purpose which are collected/received by a government office or agency acting as a trustee, agent or administrator, or which have been received as guaranty for the fulfillment of an obligation, and all other collections classified by law or regulations as trust receipt shall be treated as trust liability of the agency concerned and deposited with the National Treasury . . . ";

WHEREAS, the same provision further mandates that...

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Summary of Executive Order No. 338

Deposit of Cash Balances to the National Treasury
- All offices and agencies of the National Government, including State Universities and Colleges, Schools and Hospitals, Self-governing Boards and Commissions, and authorized government depository banks are covered. (Section 1)
- All public moneys deposited with depository banks and other institutions must be immediately transferred to the Bureau of the Treasury, regardless of income source. (Section 2)
- Disbursements shall be made by separate MDS check series, subject to the issuance of a Notice of Cash Allocation (NCA) and in accordance with existing accounting and auditing rules and regulations. (Section 3)
- Operating units are allowed to maintain current accounts for funding checks in authorized government depository banks. (Section 4)
- National government offices and agencies are allowed to maintain revolving fund deposits when expressly created and authorized by law. (Section 4)
- The Department of Budget and Management, the Department of Finance, and the Commission on Audit shall jointly issue the necessary guidelines for implementation. (Section 5)
- Failure to comply shall subject responsible officials and employees to appropriate criminal and/or administrative action. (Section 6)
- All inconsistent executive rules, regulations, and issuances are revoked or modified accordingly. (Section 7)
- The Executive Order takes effect immediately. (Section 8)