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Disbursement of Local Government Funds in General.
SEC. 41. Disbursement of Local Government Funds in General.—Revenue funds shall not be paid out of any-local treasury except in pursuance of lawful appropriation or other specific statutory authority. Trust funds shall not be paid out of any local treasury except in fulfillment of the purpose for which the trust was created or fund received.
Prohibition against expenditures for religious or private purposes.
SEC. 42. Prohibition against expenditures for religious or private purposes.—No public money or property shall be appropriated or applied for the benefit of any religious sect or activity nor any other undertaking or purpose of a private character.
Use of appropriated funds.
SEC. 43. Use of appropriated funds.—Funds shall be available exclusively for the specific purposes for which they have been appropriated. No transfers or reversions of appropriations from one item to another shall be made except by the local legislative body.
Restriction upon limit of disbursements.
SEC. 44. Restriction upon limit of disbursements.—Disbursements in accordance with appropriations in the approved local budget may be made from any local funds in the custody of the treasurer but the total disbursements from any local fund shall in no case exceed the actual collections plus fifty per cent in the case of provinces and cities and twenty-five per cent in the case of municipalities, of the uncollected estimated revenue accruing to such fund: Provided, however, That no cash overdraft in any local fund shall be incurred at the end of fiscal year. In case of emergency caused by typhoon, earthquake, or any other public calamity, the Secretary of Finance in the case of provinces and cities and the provincial treasurer in the case of municipalities, may authorize the treasurer to continue making disbursements from any local fund in his possession in excess of the limitation herein provided, but only for such purposes and amounts included in the approved local budgets as the said officials shall determine, after consultation with the local board or council. Any overdraft which may incurred at the end of the year in any local fund by virtue of the provisions hereof shall be covered with the first collections of the following fiscal year accruing to such local fund.
Prohibition against advance payments.
SEC. 45. Prohibition against advance payments.—No money shall be paid on account of any contract for which no services have as yet been rendered or no deliveries have as yet been made except with the prior approval of the President upon recommendation of the Secretary of Finance and the Commission on Audit.
Cash Advances.
SEC. 46. Cash Advances.—No cash advance shall be granted to any local official or employee, appointive or elective, unless in accordance with the rules and regulations as the Commission on Audit may prescribe.
Persons accountable for government funds property.
SEC. 47. Persons accountable for government funds property.—Every officer of the local government whose duties permit or require the possession or custody of the government funds shall be accountable and responsible therefor and for the safekeeping thereof in conformity with the provisions of this law. Other officers who, though not accountable by the nature of their duties, may likewise be similarly held accountable and responsible for the government funds through their participation in the use or application thereof.
Prohibition against pecuniary interest.
SEC. 48. Prohibition against pecuniary interest.—It shall be unlawful for any local treasurer or other accountable officer to have any pecuniary interest, direct or indirect, in any contract, work or other business of the local government unit of which he is the treasurer or accountable officer.
SEC. 49. Liability for acts done upon direction of superior officer, or upon participation of other department heads or officers of equivalent rank.—The local treasurer or other accountable officer shall not be relieved of liability for illegal or improper use or application or deposit of government funds or property by reason of his having acted upon the direction of a superior officer, elective or appointive, or upon participation of other department heads or officers of equivalent, rank. The superior officer directing, or the other department head participating in such illegal or improper use or application or deposit of government funds or property, shall be jointly and severally liable with the local treasurer or other accountable officer for the sum or property so improperly used, applied or deposited.
Prohibition against expenses for receptions and entertainment.
SEC. 50. Prohibition against expenses for receptions and entertainment.—No money shall be appropriated, used or supplied for entertainment or receptions except to the extent of representation allowances authorized by law or executive order or for the reception of visiting dignitaries of foreign governments or foreign missions, or when expressly authorized by the President in specific cases.
Certification on, and approval of, vouchers.
SEC. 51. Certification on, and approval of, vouchers.— Monies shall not be disbursed unless the treasurer concerned certifies that appropriations and funds are available for the purpose. Vouchers and payrolls shall be certified to and approved by the head of the department or office who has administrative control of the fund concerned, as to validity, propriety and legality of the claim involved. In the case of municipalities, the approval of the local chief executive shall be required when local funds are involved. In case of temporary absence or incapacity of the department head or chief of office, the officer next-in-rank shall automatically perform this function and he shall be fully responsible therefor.
Officials authorized to draw checks in settlement of obligations.
SEC. 52. Officials authorized to draw checks in settlement of obligations.—Checks in settlement of obligations shall be drawn by the Provincial and City Treasurer, as the case may be, and shall be countersigned by the Provincial or City Auditor. In case of temporary absence or incapacity of the above-named officials, these duties shall devolve upon the immediate assistant.
SEC. 53. Disbursement of local funds and statement of accounts.—Disbursements shall be made in accordance with the appropriations provided by the local legislative body without the necessity of further approval by said body. Within forty days after the close of each month, the local treasurer shall furnish the local legislative body with such financial statements as may be prescribed by the Commission on Audit. In case of the-year-end statement of accounts, the period shall be sixty days.
Rendition of accounts.
SEC. 54. Rendition of accounts.—Local treasurers and other local accountable officers shall render their accounts within such time, in such form, style and contents and under such regulations as the Commission on Audit may prescribe. Provincial and city auditors shall certify the balances arising in the accounts settled by them to the Chairman of the Commission on Audit and to the proper local treasurer and accountable officer. Similar certifications shall be prepared for other local officers who may be held jointly and severally liable for any loss or improper or unauthorized use or misappropriation of government funds or property.
Auditorial visitation.
SEC. 55. Auditorial visitation.—The books, accounts, papers and cash of any local treasurer or other accountable officer shall at all times be open to the inspection of the Commission on Audit or its duly authorized representative. In case an examination of the accounts of a local treasurer discloses a shortage in cash which should be on hand, it shall be the duty of the examining officer to seize the office and its contents, notify the Commission on Audit and the local chief executive, and thereupon immediately take full possession of the office and its contents, close and render his accounts to the date of taking possession, and temporarily continue the public business of such office. The Auditor who takes possession of the office of the local treasurer under this Section shall ipso facto supersede the local treasurer until the officer involved is restored or other provision has been lawfully made for filling the office. SEC. 56. Accounting for revenues.—Estimated revenues which remain unrealized at the close of the fiscal year shall not be booked nor credited to the unappropriated surplus or any other account.
Accounting for obligations.
SEC. 57. Accounting for obligations.—All lawful expenditures and obligations incurred during a year shall be taken up in the accounts of that year.
General liability for unlawful expenditures.
SEC. 58. General liability for unlawful expenditures.— Expenditures of funds or use of property in violation of law shall be a personal liability of the official or employee responsible therefor.
The official fiscal year.
SEC. 59. The official fiscal year.—The official fiscal year of local governments shall be the period beginning with the first day of July and ending with the thirtieth day of June of the following year.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).