AN ACT REPEALING ACT NUMBERED NINETY, WITH THE CONSENT OF THE SECRETARY OF WAR FIRST HAD, AND REPEALING ACT NUMBERED ONE HUNDRED AND FORTY-FIVE, AND PROVIDING FOR A SYSTEM OF MONEY ACCOUNTABILITY FOR THE GOVERNMENT OF THE PHILIPPINE ISLANDS, AND REPEALING ALL LAWS AND PARTS OF LAWS IN CONFLICT THEREWITH.

• Number: Act No. 1402
• Sections: 112

Section 1

SECTION 1. This Act shall be known as the ."Accounting Act” and shall not be considered as amended or repealed in any part by subsequent legislation unless specifically so stated in the amending or repealing Act.

Section 2

SEC. 2. There shall be an Auditor for the Islands, who shall be Chief of the Bureau of Audits, and who shall be appointed by the Secretary of War, with the concurrence of the Governor-General and the approval of the Philippine Commission. The duty of the Auditor shall be to receive, examine, and settle all accounts pertaining to the revenues and receipts derived under the Insular Government, and all expenditures paid therefrom. He shall certify the balances and charges due on such accounts to the division of bookkeeping in his office, and preserve the accounts and vouchers after settlement.

It shall be the duty of the Auditor to bring to the attention of the proper administrative officer expenditures of funds or property which, in his opinion, are irregular, unnecessary, excessive, or extravagant.

Section 3

SEC. 3. There shall be a Deputy Auditor for the Islands, to be appointed in the same manner as the Auditor. The duty of the Deputy Auditor shall be to sign, in the name of the Auditor, such official papers as the Auditor may designate, and perform such other duties as the Auditor may prescribe. He shall have charge of the Bureau of Audits, as Acting Auditor, in case of the death, resignation, sickness, or other absence of the Auditor.

Section 4

SEC. 4. There shall be a chief clerk to the Auditor, to be appointed by the Auditor, subject to the provisions of the Philippine Civil Service Act, and the chief clerk shall perform such duties as may be prescribed by the Auditor. He shall be Acting Deputy Auditor during the absence of the Deputy Auditor and when the Deputy Auditor by virtue of his office is performing the duties of Acting Auditor. In the absence of both Auditor and. Deputy Auditor he shall take charge of the Bureau of Audits as Acting Auditor.

Section 5

SEC. 5. There shall be a Treasurer of the Islands, to be appointed in the same manner as the Auditor, who shall be Chief of the Bureau of the Treasury. The Treasurer of the Islands shall receive and keep all moneys arising from the revenues and receipts of the Islands and shall disburse the same only on warrants issued and signed by the Auditor, or otherwise in accordance with law.

Section 6

SEC. 6. There shall be an Assistant Treasurer of the Islands, to be appointed in the same manner as the Auditor. The duties of the Assistant Treasurer shall be, under the supervision of the Treasurer, to receive and disburse cash in the office of the Treasurer, to have charge of the cash room, and to perform such other duties as the Treasurer may assign to him. He shall have charge of the Bureau of the Treasury in case of the death, resignation, sickness, or other absence of the Treasurer.

Section 7

SEC. 7. Provision for such other officials, chiefs of division, clerks, and employees of the Bureau of Audits and Bureau of the Treasury as may be necessary shall be made by the Commission in general and special appropriation Acts, as the public interest may require.

Section 8

SEC. 8. The Secretary of Finance and Justice is authorized to g designate, from time to time, either the chief clerk, the paying a teller, or the receiving teller of the Bureau of the Treasury as Acting Assistant Treasurer during the absence of the Assistant Treasurer and when the Assistant Treasurer, by virtue of his office, is performing the duties of Acting Treasurer. In the absence of both the Treasurer and the Assistant Treasurer the employee so designated shall take charge of the Bureau as Acting Treasurer.

Section 9

SEC. 9. The Auditor shall issue and sign all warrants for the payments of moneys by the Treasurer, upon requisitions approved ~ by the Auditor, and no warrants shall be drawn for the advance of moneys except upon requisition therefor made by the proper officer having control of the corresponding appropriation. No warrant shall be issued for the payment of a balance found due on any . account, except upon the certificate of the Auditor, upon the settlement of such accounts, and from an appropriation in accordance with law.

Section 10

SEC. 10. Warrants drawn for making advances of money from funds in the Treasurer's hands shall be denominated "accountable warrants," and shall be numbered consecutively, a separate series being preserved.

Section 11

SEC. 11. Warrants drawn for the payment of balances due on r claims and accounts settled and certified by the Auditor shall be denominated "settlement warrants," and shall be numbered consecutively, a separate series being preserved.

Section 12

SEC. 12. All receipts issued by the Treasurer for moneys paid to o him shall be in duplicate and shall be countersigned by the Auditor, b When so countersigned, one receipt in every case shall be retained in the office of the Auditor, and the other shall be delivered or transmitted by the Auditor to the person by whom the payment was made, after the same has been duly registered by the Auditor.

Section 13

SEC. 13. The receipts retained by the Auditor will constitute the necessary check in his examination and settlement of the Treasurer's account of receipts, as the authority for charging the Treasurer with moneys received, and such receipts shall be filed in the office of the Auditor with the accounts in which credit is given.

Section 14

SEC. 14. Warrants paid by the Treasurer with the evidence of y payment, which shall be the proper indorsement of the payee thereon, shall constitute the vouchers upon which the Treasurer shall receive credit for payments made by him, in the settlement of his accounts by the Auditor, which warrants shall be filed therewith: Provided, That a warrant may be drawn to the Treasurer, for deposit of proceeds to the credit of a designated disbursing officer, or for telegraphic transfer to such disbursing officer, and the Treasurer shall receive credit for the payment of said warrant upon evidence of such deposit or transfer.

Section 15

SEC. 15. The certificates on the settlement of accounts made by the Auditor shall be numbered consecutively and filed in the office of the Auditor, who shall preserve the same.

Section 16

SEC. 16. The Auditor shall prescribe the forms for keeping and rendering all accounts subject to his examination and settlement, and issue all necessary instructions to the officers and agents rendering such accounts.

Section 17

SEC. 17. There shall be in the Bureau of Audits a division of bookkeeping, in which shall be kept proper books of entry and ledgers for recording the general accounts of the receipts, expenditures, and appropriations of the Insular Government and of the provincial governments, and the personal accounts of the officers and agents authorized to collect revenues, receive funds, and to disburse moneys advanced by the Treasurer upon warrants as herein provided, or otherwise, and of all other accounts or claims allowed and certified by the Auditor.

Section 18

SEC. 18. Accounts of appropriations shall ho kept so as to show the balances remaining undrawn and subject to withdrawal at any time. Appropriations shall not be a mimed to fiscal years, but shall be available until expended for the purposes for which appropriated, subject to such restriction as may be specifically imposed in the appropriating Act. The Auditor is authorized and directed to transfer at any time from moneys appropriated for a specific purpose to the unappropriated! general fund any balances standing to the credit of a Department, Bureau, or Office when the head of such Department, Bureau, or Office shall certify In the Auditor that the work or purpose for which the appropriation was made has been completed and that there are no outstanding obligations to be paid from such appropriation. The Auditor, for statistical purposes, shall separate disbursements by fiscal years, and the date of the payment of a claim shall determine the fiscal year to be charged.

Section 19

SEC. 19. The receipts issued by the Treasurer for moneys paid to him, before being countersigned by the Auditor, shall be entered by the division of bookkeeping hi the proper lodgers of general receipts as funds arising, respectively, from customs receipts, postal receipts, internal-revenue receipts, miscellaneous receipts, repayments, and such other designations as may be required to properly distinguish funds otherwise arising or set apart for pariticular purposes. In making such entries from the Treasurer's receipts, the number and date of receipt and the name and official designation, if any, of the person by whom the deposit was made, shall be noted. Repayments to the Treasury for any purpose shall be entered in the accounts affected be such repayment.

Section 20

SEC. 20. All warrants issued by the Auditor shall be charged against the proper appropriation, and in making such debit entries the number and date of the warrant and the name and official designation, if any, of the person to whom paid, shall be noted.

Section 21

SEC. 21. In ledgers for personal accounts all advances of money made upon requisitions and warrants to officers and agents authorized to disburse the same, in accordance with appropriations, shall be charged to such officers or agents, respectively, on account of the service and appropriation for which disbursement is to be made, at s the time of issuing the warrants for such advances of money. The numbers and dates of the respective wan-ants shall be noted in making such debit entries, and for the disbursements made by such officers or agents, which may be allowed by the Auditor in the settlement of accounts of such disbursements, proper credit shall be entered to the respective personal accounts from the certificates of settlement made by the Auditor, the number and dates of the it respective certificates being noted in making the credit entries. The '" Auditor is authorized to charge back and debit: an officer's account with the amount of any voucher or item which may not be finally allowed by him in the settlement of the officer's account.

Section 22

SEC. 22. In like manner the certificates of settlement of individual accounts of all kinds made by the Auditor shall be entered in the ledgers of personal accounts to the proper individual account, on account of the service and appropriation for which the account is rendered, the number and date of the Auditor's certificate being r-noted; and all settlement warrants issued upon certificates of settlement of accounts made by the Auditor shall be charged to the proper individual account, under the appropriate head, in the ledgers of personal accounts, the number and date of the warrant being noted.

Section 23

SEC. 23. In making the settlement of each account, and before certifying the same, the Auditor shall require a statement from the i division of bookkeeping setting forth the charges with which said officer should be debited during the period comprehended by the sell lenient. The last certified balances on the particular accounts . shall be verified by the previous certificate of settlement, if any. These balances and charges shall be used as the basis of the Auditor's , sell lenient of the account before him.

Section 25

SEC. 25. Every disbursing officer is responsible to the Insular , Government under his bond for payments made by him, whether such payments are made by direction of his superior officers or not, and the fact of such direction will not relieve him of responsibility. A disbursing officer, in determining the legality of expenditures,! must act independently of the head of his Bureau or Office, and at, his own peril, but the disbursing officer may protect himself as provided in section thirty-one.

Section 26

SEC. 26. Every bonded officer of the Government, whether collecting or disbursing officer, is authorized to communicate directly with the Auditor on any matter relating to his accounts.

Section 27

SEC. 27. Payments shall lie made only by the disbursing officers, duly designated, except in cases of disbursing officers who are un-avoidably absent or otherwise disabled, in which case payments may be made by officers or clerks specially designated for the purpose by the disbursing officer, for whose acts such disbursing officer shall he responsible, such disbursements to be made in the name of the disbursing officer.

Section 28

SEC. 28. It shall be the duty of every disbursing officer in the city of Manila having any public moneys intrusted to him for disbursement to deposit the same with the Treasurer of the Islands or' in a depository duly designated, and to draw for the same as may be required for payments made by him in pursuance of law. No payment shall be made in cash by any disbursing officer in the city of Manila where the amount to be paid exceeds the sum of twenty-five pesos. Philippine currency, except for salaries and wages. All payments to creditors other than for salaries and wages, as stated, in the city of Manila, shall be by check upon the designated depository for the disbursing officer, the number and the amount of the check so drawn being entered on the voucher covering said payment. Payments of salaries and wages may be made in cash, lint the disbursing officer shall draw his check payable to himself for an amount, not exceeding the amount of any pay roll to be paid by him for any month, and he shall state on the check so drawn that it is for funds with which to pay salaries and wages. No disbursing officer shall keep in his personal possession at any time an amount in cash exceeding his immediate requirements for disbursement, but shall deposit all surplus funds drawn from the Insular Treasury, in his designated depository until such time as he may lie required or directed by the Auditor to deposit the same in the Insular Treasury as repayments to the appropriations originally drawn upon: Provided, That each disbursing officer, under such regulations as the Auditor may prescribe, is authorized to advance, on memorandum receipt, to the head of a Bureau or Office reasonable sums, to be approved by the Auditor, for the purpose of enabling such head of a Bureau or Office to make immediate payments of minor bills presented or obligations incurred. In such cases the payee's memorandum receipts or receipted bills covering these minor payments shall be presented to the disbursing officer at convenient intervals and be included, when practicable, in one reimbursement voucher. Each head of a Bureau or Office shall be responsible to the disbursing officer, under the provisions of section forty-three of this Act, for a proper accounting, either by cash or by evidence of proper disbursement, for all sums advanced as herein provided.

When a disbursing officer becomes separated from the service ' through removal, resignation, or death, and in the settlement of his accounts it becomes necessary to transfer funds from his disbursing account to the General Treasury, it shall be the duty of the Treasurer of the Philippine Islands, or a designated depository, upon the request of the Auditor for the Philippine Islands, to charge the disbursing officer's account in the sum to be deposited in the Treasury, and to deposit the same therein as requested by the Auditor; and the written request of the Auditor for such action shall be sufficient authority for the Treasurer or the designated depository to make such deductions and deposits.

Section 29

SEC. 29. Except as hereinafter provided, accounts of disbursements shall be rendered monthly and transmitted to the Auditor within ten days after the expiration of the month to which they pertain, by the officers and agents authorized to make disbursements, in which said officers or agents shall charge themselves with all moneys advanced to them, respectively, by the Treasurer and from all other sources, and take credit for the disbursements made by them, supported by proper vouchers, consecutively numbered. An abstract of such vouchers shall be transmitted with an account when required by the Auditor.

Section 30

SEC. 30. Any officer or agent whose duty it is to collect and receive moneys arising from the revenues of the Insular Government, or moneys accruing to the same, of whatever kind, and to make disbursements of such moneys for any purpose, who shall fail to render complete accounts of such receipts and disbursements to the Auditor, or to transmit the same within ton days after the expiration of the month to which they pertain, or shall neglect to render the same when requested to do so. shall be subject to such

penalties as may be proscribed by law. and the Auditor may request the Secretary of Finance and Justice to direct prosecution here-under, and under Act Numbered Seven hundred and forty-nine, in any case which in his. judgment may seem to require such action.

Section 31

SEC. 31. A disbursing officer or the head of any Department, Bureau, or Office may apply for, and the Auditor shall render, his decision upon any question involving a payment about to bo made by them or under them, which decision, when rendered, shall govern the Auditor when passing upon the account containing said disbursement.

Section 32

SEC. 32. Except as herein provided, the officers or agents authorized to receive and collect moneys arising from the revenues of the Insular Government, and receipts, of whatever kind, shall bev required to pay the full amounts received and collected by them, respectively, to the Treasurer of the Islands, and to render to the Auditor monthly accounts therefor within ten days after the expiration of the month to which they pertain, in such form as may be required by him.

Section 33

SEC. 33. In the rendition of accounts of Insular revenues, officers or agents shall charge themselves with all revenues received and collected during the period covered by the account, and take credit, for the amounts paid to the Insular Treasurer as shown by the duplicate receipts in their possession and countersigned by the Auditor, the number and date of such receipts being noted in the entries of amounts paid to the Treasurer. These duplicate receipts will be retained by the officer or agent claiming credit therefor.

Section 34

SEC. 34. In the audit of such Insular revenue accounts the Auditor shall compare and check the Treasurer's receipts on file in his office with the corresponding entries in the account of the officer or agent, as rendered.

Section 35

SEC. 35. All revenue accounts shall be rendered and kept separately under the appropriate funds and heads of accounts to which the collections respectively pertain.

Section 36

SEC. 36. In all cases where an Insular or provincial officer or employee shall receive or have custody of money in the discharge of: his official duties, he shall give bond to the Government of the Philippine Islands, for whom it may concern, to secure the proper accounting of the same and the payment thereof in accordance with law. unless he be a Regular Army or Navy officer of the United Stales detailed for the duty, in which case no bond shall be required. It shall be the duty of the Auditor to fix the amount of such bond, to approve the same, and to retain it in his custody.

Section 37

SEC. 37. Requisitions for advances from funds in the hands of the Treasurer for paying necessary and proper expenses chargeable to the Insular Government shall be made from time to time by the respective officers or agents authorized to disburse the same, in such form as may be prescribed by the Auditor, and pursuant to appropriations made.

Section 38

SEC. 38. Such requisitions shall contain an itemized estimate of the amounts required for disbursement under the several heads of appropriation, and no accountable warrant shall be drawn for an amount exceeding the requirements for one month: Provided, That the Auditor may, in his discretion, allow a requisition for a greater amount, when, in his opinion, the convenience of the service requires such action.

Section 39

SEC. 39. Each requisition when signed by the head of a Bureau, or officer having control of the appropriation, shall be forwarded to tin' Auditor. When allowed by him, and so indorsed upon the requisition over his official signature, the proper warrant may be issued for the amount allowed.

Section 40

SEC. 40. If at any time before a warrant shall have been issued any fact shall come to the Auditor which in his judgment affords sufficient grounds for disapproving an advance of money asked for, he is authorized to withhold the issuance of the warrant. In such case the head of the Bureau, or officer having control of the appropriation, may appeal in writing to the Governor-General, whose decision shall be final, if there is an appropriation from which said warrant may be paid. If there is no appropriation, the decision of the Auditor shall be final.

Section 41

SEC. 41. Claims of officers or agents whose duty it is to collect or account for public moneys, for losses of funds in transit, by fire, burglary, or other unavoidable casualty, shall be submitted to the Auditor within one month after such loss occurs, with all the evidence in the case. If the Auditor shall find that the said funds were properly in the hands of such officer or agent, or properly remitted, and that the loss resulted through no fault of said officer or agent, he may, with the written consent of the Governor-General, credit the account of such officer or agent with the amount of the loss: Provided, That in no case shall a credit in excess of two thousand pesos be given in this manner. Claims for losses in excess of two thousand pesos shall be submitted through the Auditor and Governor-General to the Commission for relief through legislative enactment.

The officer shall be liable for all losses, resulting from any cause, except an act of God or the public enemy, unless relieved therefrom as herein provided.

Section 42

SEC. 42. The Auditor may, with the written consent of the Governor-General, mitigate, remit, remove, compromise, release, or discharge any liability, in whole or in part, to the Philippine Government, or a provincial government, in any matter before him, when, in his judgment, the interests of the Government seem to require it, except in eases provided for in the next preceding-section and subject to such further restrictions as may lie provided by law.

Section 43

SEC. 43. The Auditor shall supervise the collection of all debts found to be due the Government in connection with his settlement and adjustment of accounts, through the usual civil and judicial channels, and request the Secretary of Finance and Justice to direct the institution of any legal proceedings necessary to enforce the payment of such debts and the restitution of all amounts found to be due said Government in settlements made by him, and he may direct the proper disbursing officer to withhold From any officer, agent, or employee of the Government, who is indebted to the Government, any amount which may be due or which may become due to such officer, agent, or employee who fails in pay such indebtedness on demand. Indebtedness to the Government shall be construed to mean indebtedness to the Insular Government, to a provincial government, or to the city of Manila.

Section 44

SEC. 44. Upon the separation from the service of any officer, money due him by the Government for salary, leave, or any other reason shall first be applied to settle any indebtedness of such officer to the Insular or to any provincial or municipal government.

Section 45

SEC. 45. Whenever any person accountable for public money neglects or refuses to pay into the Treasury, when required to do so. the sum or balance certified to be due upon the adjustment of his account, the Auditor shall request the Secretary of Finance and Justice to direct the institution of suit against the officer and his sureties for the recovery of the same, with interest at six per centum per annum from the date of the Auditor's written demand until it shall be paid into the Treasury.

Section 46

SEC. 46. The Governor-General may designate banking institutions in the Philippine Islands as depositories of the Government thereof upon their filing with him satisfactory evidence of their financial responsibility and such security as he shall require and approve.

Such institutions may deposit their securities with the Bureau of Insular Affairs of the War department. Washington. District of Columbia, in the event of which, if found satisfactory by the

Secretary of War. he may approve the same, and designate such institutions as depositories of the Government of the Philippine Islands and advise the Governor-General that such banking institutions have made deposits of bonds or other securities as security for the deposit of funds of the Government of the Philippine Islands, stating the amount of such bonds or securities so deposited; and that he has approved the same.

The Secretary of War may designate banking institutions in the United States as depositories of the Government of the Philippine Islands, after they have filed in the Bureau of Insular Affairs of the War Department, Washington. District of Columbia, sufficient evidence of their sound financial condition and deposited bonds of the United States or of the Government of the Philippine Islands or other security satisfactory to the Secretary of War in such amounts as may be designated by him; and no banking institution shall In designated a depositors of the Government of the Philippine Islands until the foregoing conditions have been complied with.

Section 47

SEC. 47. Disbursing officers shall deposit funds placed in their hands for disbursement pursuant to appropriations only in such. depositories in the Philippine Islands as may be designated according to the next preceding section. When payment is made by check, its number shall be noted on the voucher to which it pertains. Such depositories shall report to the Auditor at the close of each quarter or often or if he shall require it, the balances to the credit of all disbursing officers as shown by their records. In every case where two years have elapsed since the rendition and settlement of the final account of a disbursing officer and there remains a balance in any depository to the credit of such disbursing officer, by reason of the non-presentation of checks or otherwise, the Auditor shall require the said depository to deposit the said balance with the Treasurer of the .Islands, to be carried by the Auditor to a permanent appropriation for "outstanding liabilities." No disbursing officer's check shall be paid after two years from the date of its issue.

Section 48

SEC. 48. Whenever any original check is lost, stolen, or destroyed, disbursing officers or agents of the Government are authorized a Her the expiration of three months, and within two years from the date of such check, to issue a duplicate check, and the Treasurer or designated depositories of the Government are directed to pay such duplicate checks, under such regulations in regard to their issue and payment, and upon the execution of such bonds, with surety to indemnify the Government, as the Auditor and Treasurer shall jointly prescribe: Provided, That upon satisfactory evidence that the check has been destroyed or never reached the payee, the above-mentioned period of three months may be waived.

Section 49

SEC. 49. In case the disbursing officer or agent by whom such lost, destroyed, or stolen original check was issued is dead, or no longer in the service of the Philippine Islands, it shall be the duty of the Auditor to direct the Treasurer, or proper depository, to transfer from the balance to the credit of such disbursing officer or agent to the account of "outstanding liabilities" the amount of such lost, destroyed, or stolen check and to state an account in favor of the owner of the original check for the amount thereof.

Section 50

SEC. 50. The Treasurer and designated depositories .shall, at the dose of business on every thirtieth day of June, report to the Auditor the condition of every official account standing on their books, stating the name of each depositor, with his official designation, the total amount remaining on deposit to his credit, and the dates, respectively, of the last credit and the last debit made to each account: and each disbursing officer or agent shall make a like return of all checks issued by him, and which may have been outstanding and unpaid for two years or more, stating fully in such report the name of the payee, for what purpose each check was given, the depository on which drawn, the number of the voucher received therefor, the' date, number, and amount for which it was drawn, and, when known, the residence of the payee.

Section 51

SEC. 51. Whenever a disbursing officer or agent shall cease to act in that capacity, he shall submit to the Auditor a statement of the public funds to his credit in any depository, and he shall submit a list of checks with names of the payees and amounts which he has ¦ drawn against the same which are still outstanding and unpaid.