Department of Budget and Management(DBM-)

March 8, 2023 Dear Anjo Ellis Padilla, Greetings! Thank you for your request dated Feb 27, 2023 02:24:22 PM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch. Your Request You asked on whether you “can pay Accounts Payable (A/P) sourced from Fiscal Year (FY) 2021 General Appropriations Act (GAA) Continuing Appropriation which lapsed last December 31, 2022, using the FY 2023 GAA Current Appropriation”. Response to Request Accounts Payables (A/Ps) as defined by the Commission on Audit (COA) refers to valid and legal obligations of National Government Agencies (NGAs)/ Operating Units (OUs), for which, goods/services/projects have been delivered/rendered/completed and accepted, regardless of the year when these obligations were incurred . As defined, it is reiterated that Prior Year’s A/Ps are payables, which have been delivered/completed and accepted, but remained unpaid as of the end of the preceding year. Therefore, such A/Ps accommodated within the budget year’s Monthly Disbursement Program, which are already obligated within the validity period of the allotment issued, and covered by valid contracts, can be paid through the issuance of Notice of Cash Allocation (NCA). It must be noted, however, that all valid A/Ps which remain unpaid for more than two years shall be reverted to the unappropriated surplus of the General Fund, pursuant to Executive Order (EO) No. 87 , s. 2019 as implemented by COA-DBM Joint Circular (JC) No. 1 , s. 2021. Thank you. Respectfully, Budget Technical Bureau FOI Receiving Officer