Article 119p. 119

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

determined by the Permanent Committee created under

this Act.

SECTION 45. Special, Fiduciary and Trust Funds . —

Receipts shall be recorded as income of Special, Fiduciary

or Trust Funds or Funds other than the General Fund,

only when authorized by law and following such rules

and regulations as may be issued by a Permanent

Committee consisting of the Secretary of Finance as

Chairman, and the Secretary of the Budget and the

Chairman, Commission on Audit, as members. The same

Committee

shall

likewise

monitor

and

evaluate

the

activities

and balances of all Funds of the national

government

other

than

the General fund and may

recommend for the consideration and approval of the

President, the reversion to the General fund of such

amounts as are (1) no longer necessary for the attainment

of the purposes for which said Funds were established, (2)

needed by the General fund in times of emergency, or (3)

violative of the rules and regulations adopted by the

Committee:

Provided ,

that

the

conditions

originally

agreed upon at the time the funds were received shall be

observed in case of gifts or donations or other payments

made by private parties for specific purposes.

SECTION 46. Service Fees and Honoraria . — Agencies

are authorized to charge fees, including honoraria and

other

reasonable

allowances

as

compensation

for

consultation, seminars or training programs, or technical

services

rendered

to

other

government agencies or

private parties. Such fees or honoraria shall be recorded

as income of the government and subject to the usual

accounting, auditing and other pertinent requirements.

SECTION 47. Administration of Lump-Sum Funds . —

The

Department

of

Budget

shall

administer

the

Lump-Sum

Funds

appropriated

in

the

General

Appropriations Act, except as otherwise specified therein,

including the issuance of Treasury Warrants covering

payments to implementing agencies or other creditors,

as may be authorized by the President.

SECTION 48. Cost Reduction . — Each head of a

department, bureau, office or agency shall implement a

cost reduction program for his department, bureau, office

or agency for the purpose of reducing cost of operations

and shall submit to the President reports on the results of

the implementation thereof. The Department of Budget

shall provide technical and other necessary assistance in

the

design

and

implementation

of

cost

reduction

activities. An incentive award not exceeding one month's

salary may be granted to any official or employee whose

suggestion for cost reduction has been adopted and shall

have actually resulted in cost reduction, payable from the

savings resulting therefrom.

SECTION 49. Authority to Use Savings for Certain

Purposes . — Savings in the appropriations provided in

the General Appropriations Act may be used for the

settlement of the following obligations incurred during a

current fiscal year or previous fiscal years as may be

approved by the Secretary in accordance with rules and

procedures as may be approved by the President:

(1) Claims of officials, employees and laborers who died

or were injured in line of duty, including burial expenses

as authorized under existing law;

(2) Commutation of terminal leaves of employees due

to retirement, resignation or separation from the service

through no fault of their own in accordance with the

provisions of existing law, including unpaid claims for

commutation of maternity leave of absence;

(3) Payment of retirement gratuities or separation pay

of

employees

separated

from

the

service

due

to

government reorganization;

(4) Payment of salaries of employees who have been

suspended or dismissed as a result of administrative or

disciplinary action, or separated from the service through

no fault of their own and who have been subsequently

exonerated

and

reinstated

by virtue of decisions of

competent authority;

(5) Cash awards to deserving officials and employees

in accordance with civil service law;

(6) Salary adjustments of officials and employees as a

result of classification action under, and implementation

of, the provisions of the Compensation and Position

Classification Act, including positions embraced under

the Career Executive Service;

(7) Peso support to any undertaking that may be

entered

into

by

the

government

with

international

organizations,

including

administrative

and

other

incidental expenses;

(8) Covering any deficiency in peso counterpart fund

commitments for foreign-assisted projects, as may be

approved by the President;

(9) Priority activities that will promote the economic

well-being

of

the nation, including food production,

agrarian reform, energy development, disaster relief, and

rehabilitation.

(10)

Repair,

improvement

and

renovation

of

government

buildings

and

infrastructure

and

other

capital assets damaged by natural calamities;

(11) Expenses in connection with official participation

in

trade

fairs,

civic

parades,

celebrations,

athletic

competitions and cultural activities, and payment of

expenses for the celebration of regular or special official

holidays;

(12) Payment of obligations of the government or any

of

its

departments or agencies as a result of final

judgment of the Courts; and

(13)

Payment

of

valid

prior

year's

obligations

of

government agencies with any other government office

or agency, including government-owned or controlled

corporations.

SECTION 50. Appointment of Budget Officers . — No

person shall be appointed as budget officer in any

department, bureau, office or agency unless he meets

the qualification and training requirements established

by

the

Budget

Commission

as

prerequisite

to

appointment,

in

addition

to

other

qualification

requirements prescribed by the Civil Service Commission

for the position.

CHAPTER 6 Budget Accountability

SECTION 51. Evaluation of Agency Performance . —

The President, through the Secretary shall evaluate on a

continuing

basis

the

quantitative

and

qualitative

measures of agency performance as reflected in the units

of work measurement and other indicators of agency

performance, including the standard and actual costs per

unit of work.

SECTION 52. Budget Monitoring and Information

System . — The Secretary of Budget shall determine

accounting and other items of information, financial or

otherwise, needed to monitor budget performance and

to assess effectiveness of agencies' operations and shall

prescribe the forms, schedule of submission, and other

components

of

reporting

systems,

including

the

maintenance of subsidiary and other records which will

enable

agencies

to

accomplish

and

submit

said

information requirements: Provided , that the Commission

on Audit shall, in coordination with the Secretary of

Budget,

issue

rules

and

regulations

that

may

be

applicable

when

the

reporting

requirements

affect

accounting functions of agencies: Provided, further , that

the applicable rules and regulations shall be issued by the

Commission on Audit within a period of thirty (30) days

after

the

Department

of

Budget

and

Management

prescribes the reporting requirements.

SECTION

53.

Monitoring

of

Expenditures .

—

Expenditures of national government agencies shall be

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