Reverting All Dormant Accounts, Unnecessary Special and Trust Funds to the General Fund and for other purposes

MALACAÑANG
Manila

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER No. 431 May 30, 2005

REVERTING ALL DORMANT ACCOUNTS, UNNECESSARY SPECIAL AND TRUST FUNDS TO THE GENERAL FUND AND FOR OTHER PURPOSES

WHEREAS, the Commission on Audit, in its Annual Audit Report, confirm the existence of huge cash balances maintained by government agencies with authorized government depository banks;

WHEREAS, there is a need to look into the status of the aforementioned cash balances and the legal basis for maintaining the same outside the control of the Bureau of Treasury;

WHEREAS, Section 29(3), Article Vl of the Constitution provides that once the purpose for which a special fund was created has been fulfilled or abandoned, the balance, it any, shall be transferred to the general funds of the government;

WHEREAS, Section 45, Chapter 5, Book Vl of EO No. 292, otherwise known as the Administrative Code of 1987, mandates the Permanent Committee composed of the Secretary of Finance, the Secretary of Budget and Management and the Chairman of the Commission on Audit to monitor...

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Summary of Executive Order No. 431

Reverting All Dormant Accounts, Unnecessary Special and Trust Funds to the General Fund

- Establishes a Permanent Committee (PC) composed of the Secretary of Finance (Chairman), Secretary of Budget and Management, and Chairman of the Commission on Audit to:
    - Examine and evaluate all existing cash deposits maintained outside the Bureau of Treasury by government agencies (Section 1)
    - Review the legal basis for maintaining such funds outside the Treasury (Section 2)
    - Prepare an inventory of cash accounts of each government agency (Section 2)
    - Recommend to the President the transfer of funds to the National Treasury where no legal impediment exists (Section 2)

- Mandates all government agencies to cooperate, open their books, and assist the PC in conducting inspections and reviews to facilitate the transfer of funds to the Bureau of Treasury (Section 3)

- Directs the PC to issue necessary rules and regulations for proper implementation (Section 4)

- Requires strict implementation by government agency heads and the PC, with violations to be dealt with according to law (Section 5)

- Repeals or modifies inconsistent orders, rules, regulations, and issuances (Section 6)

- Takes effect immediately (Section 7)