G/Cash and Treasury Management: What’s the legal basis in reverting unutilized cash/funds to the Bureau of the Treasury?

Query:

Hi. Ano po ang legal basis sa Reverting of unutilized fund to BTr? Thank you.

Response:

NBC No. 573, which you can download a copy here, provides the validity of cash allocation. For instance, cash allocations under the Agency’s Regular MDS account shall be valid only up to the end of each quarter. Meaning, any unutilized cash at the end of each quarter shall revert back to the National Treasury. However, the Agency may still request the release of the reverted cash from the DBM, subject to compliance with certain conditions.

On the other hand, any unutilized portion of the funds released by the national government agencies (NGAs) to the local government units (LGUs) for the implementation of programs and projects after final completion, shall likewise be returned to the BTr, inasmuch as the LGU cannot use the unutilized portion of the fund (i.e., savings) other than the intended purpose.

Read more responses to this query, here.

Featured Image by | SaveOnSend | edited by GABOTAF