THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 
7 
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INTRODUCED BY HON. MANUEL B. VELAR JR. 
EXPLANATORY NOTE 
Government accountants play a vital role in the operation of the National Government, its 
subdivisions, agencies, and instrumentalities, including government-owned and controlled 
corporations. They are instrumental in recording disbursement, revenues and collections as well 
as in the preparation of financial statements or reports regularly submitted to Congress, the 
Commission on Audit, the Department of Budget and Management, the National Treasury, and 
other authorities concerned. Thus, in the performance of such given tasks, they are obliged to 
render accounting service beyond office hours to complete the preparation of financial reports in 
order to analyze and determine the actual cash position and funds of the government. 
In recognition of their important functions, this bill declares all employees holding 
permanent positions in various government agencies performing accounting, budgeting, internal 
audit and other related government accounting functions as protector and vanguard of financial 
and material resources of the Government. As such, this proposed measure seeks to improve and 
promote their social and economic status, living and working conditions, terms of employment, 
professional growth and career advancement. 
Among the provisions of the proposed bill is the exemption of government accountants 
from the provisions of R.A. No. 6758, otherwise known as the "Compensation and Position 
Classification Act of 1989," particularly Section 12 thereof, by providing them additional 
compensation and incentives such as subsistence allowance, longevity pay, and compensation for 
injuries. Moreover, the proposed legislation recognizes the following rights of government 
accountants, namely: the right to self-organization, the right to attend periodic workshops, 
dialogues, conferences, seminars and conventions, the right to security of tenure, and the right to 
due process. 
In view of the necessity to compensate the daily tremendous workload of government 
accountants, the early passage of this bill is earnestly requested. 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
. A
/
 
SENATE 
S. No. 
*,*r. 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
AN ACT PROVIDING FOR A MAGNA CARTA OF GOVERNMENT ACCOUNTANTS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assern bled: 
SECTION 1. Title. - This Act shall be known as the "Magna Carta of Government Accountants." 
SECTION 2. Declaration of Policy. - The State shall maintain honesty and integrity in the public 
service and take positive and effective measures to develop and install a sound and effective 
government accounting system consistent with the requirements of public accountability and 
transparency. The State hereby declares the Government Accountants as protector and vanguard 
of financial and material resources of the Government. To this end, the State shall endeavor to 
improve and promote their social and economic status, living and working conditions, terms of 
employment, professional growth, and career advancement. 
SECTION 3. Definition of Terms. - As used in this Act, the following terms shall be construed to 
mean as follows: 
a) Government Accounting - refers to the whole system of recording, classifying and 
summarizing financial transactions, the establishment of adequate accounting and financial 
information system, the establishment of sound and integrated system of internal financial and 
administrative controls, and such other related functions aimed towards improving fiscal controls 
and management; 


b) Government Accountant - refers to any government employee holding position 
belonging to any level of the career service and performing function and/or works pertaining to 
government accounting; 
c) Government Accounting Staff - refers to a group of government accountants assigned 
in a particular organizational unit which includes, but not limited to, an office, division, section 
or equivalent, performing government accounting functions; 
d) Certified Public Accountant (CPA) - refers to one who has passed the licensure 
examination given by the Board of Accountancy of the Professional Regulations Commission, 
has taken his oath and possesses no disqualification to practice his profession; 
e) Head of Agency - refers to the chief operating officer of a department, office, agency, 
bureau, state university and/or college, local government unit, government-owned and controlled 
corporation and such other governmental instrumentalities; 
f) CSC - refers to the Civil Service Commission; 
g) COA - refers to the Commission on Audit; 
h) DBM - refers to the Department of Budget and Management; 
i) AGAP - refers to the Association of Government Accountants of the Philippines, Inc.; 
j) Geographical Reassignment - refers to the movement of official station from one 
geographical location to another; 
k) Compulsory Retirement - refers to the cessation and/or termination of service by the 
Government Accountant with the Government in accordance with law or as may be provided 
under this Act; 
1) Overloading - refers to a condition when a Government Accountant is assigned 
tasks/works above normal workload level; 


m) Understaffing - refers to a condition when a number of authorized positions in an 
organizational unit performing government accounting function is less than the required number 
of positions. 
SECTION 4. Coverage. - This Act shall cover all officials and employees holding permanent 
positions in the Government, its subdivisions, agencies, and instrumentalities, including 
government-owned and controlled corporations performing accounting, budgeting, internal audit 
and other related government accounting functions. 
SECTION 5. Recruitment and Qualification. - The selection and appointment of Government 
Accountants shall be strictly in accordance with the merit and fitness principle and the minimum 
qualification requirements as may now or thereafter be prescribed by the CSC: Provided, That 
the CSC may develop and administer specialized examination for purposes of providing 
appropriate eligibilities to positions not requiring a certified public accountant eligibility. 
SECTION 6. Performance Evaluation and Merit Promotion. - Heads of agencies shall prepare a 
uniform Career and Personnel Development Plan applicable to all Government Accountants in 
their respective agencies. Such Career and Personnel Development Plan shall include provisions 
on merit promotion, performance evaluation, in service training, grants and incentive award 
system. 
The Performance Evaluation Plan shall consider foremost the improvement of individual 
employees efficiency and organization effectiveness: Provided, That each employee shall be 
informed regularly of his performance evaluation. 
The merit promotion plan shall be in consonance with the rules of the CSC. 
SECTION 7. Transfer or Geographical Reassignment of Government Accountants. - Government 
Accountants shall not be transferred or reassigned except, when made in the interest of public 
service, in which case, the employee concerned shall be informed of the reasons therefor in 
writing. If the Government Accountant believes that there is no valid ground for the transfer or 


reassignment, he may appeal the order to the CSC; and pending appeal, such transfer or 
reassignment shall be held in abeyance: Provided, That no transfer or reassignment whatsoever 
shall be made three (3) months before any local or national elections: Provided, further, That 
Govermnent shall pay for the necessary expenses of the transfer or reassignment of the 
Government Accountant and his immediate family. 
SECTION 8. Security of Tenure. - Government accountants holding permanent positions shall 
not be terminated except for cause as may be provided by law and after due process: Provided, 
That any goveinment accountant found by the CSC to be unjustly dismissed from work shall be 
entitled to reinstatement without loss of seniority rights and to backwages with twelve (12%) 
percent interest computed from the time the compensation was withheld up to the time of 
reinstatement. 
SECTION 9. Discrimination Prohibited. - A Government Accountant shall not be discriminated 
against with regard to gender, civil status, creed, religious or political beliefs, and ethnic 
groupings in the exercise of his profession. 
SECTION 10. No Understaffing/Overloading of Government Accounting Staff. There shall be 
no understaffing or overloading of Government Accountants. A Standard Staffing Pattern for 
government accounting staff shall be established, taking into consideration the total 
appropriation, number of funds, number of agencies/units with individual sets of books of 
accounts, organization's manpower force, and such other factors as may be determined by the 
DBM, CSC and COA. 
In line with the above policy, substitute officers or employees shall be provided in place of 
officers or employees who are on leave for over three (3) months. 
SECTION 1 1. Safeguards and Disciplinary Procedures. - In every disciplinary proceeding, a 
Government Accountant shall be accorded the following rights: 
a) The right to be informed in writing of the charges against him; 


b) The right to full access to evidence; 
c) 
The right to defend by himself or by counsel of his own choice and/or his organization; 
d) 
behalf; 
The right to confront witnesses presented against him and summon witnesses in his 
e) 
The right to appeal to designated authorities; 
f) 
Such other rights as will ensure fairness and impartiality during proceedings. 
In case the Government Accountant is exonerated or the charge against him is dismissed, he shall 
be entitled to reimbursement of reasonable expenses incurred in his defense. 
SECTION 12. Overtime Work. - Where the exigencies of the service so require, any Government 
Accountant maybe required to render service beyond the normal eight (8) hours a day, including 
Saturdays, Sundays or non-working holidays. In such case, the Government Accountant shall be 
paid an additional compensation in accordance with existing laws. 
SECTION 13. Night Shift Differential. - Any Government Accountant who is required to work 
on a shift with working hours going beyond ten (10) o'clock in the evening up to six (6) o'clock 
in the morning shall be entitled to a night shift differential pay of ten percent (10%) of the regular 
wage for each hour performed during the night shift. 
SECTION 14. Salaries. - The salary scale of Government Accountants shall be in accordance 
with the provision of Joint Resolution No. 1, and shall progress whenever there is a salary 
increase or across the board adjustment granted by the National Government: Provided, That the 
salary of the highest government accountant position shall be equal to the salary of the third 
ranking official of any government agency: Provided, further, That the salary grade intervals 
down the rank shall not be more than two (2) salary grades. 


SECTION 15. Additional Compensation and Lncentives. - Notwithstanding Section 12 of 
Republic Act No. 6758, otherwise known as the "Compensation and Position Classification Act 
of 1989," Government Accountants shall receive the following allowances: 
a) Subsistence allowance which may be computed in accordance with prevailing circumstances 
as may be determined by and in consultation with AGAP; 
b) Longevity pay which shall be- equivalent to five percent (5%) of the monthly basic pay for 
every five (5) years of continuous, efficient and meritorious services rendered as certified by the 
Head of Agency commencing with the service after the approval of this Act. 
c) Laundty Allowance shall be granted to those who are required to wear uniform regularly at the 
rate of Three Hundred Pesos (P300.00) per month: Provided, That this rate shall be reviewed 
periodically and increased accordingly by the Secretary of Budget and Management in 
consultation with the appropriate government agencies concerned. 
d) Remote Assignment Allowance shall be extended to those who accept assignment in remote 
areas or isolated stations, which for reasons of far distance or hard accessibility, such positions 
had not been filled for the last two (2) years prior to the approval of this Act, equivalent to fifty 
percent (50%) of their basic pay inclusive of the reimburseable cost of reasonable transportation 
to and from such remote post or station, upon assuming or leaving such position and during 
official trips: Provided, That tour of duties in remote areas shall not exceed two (2) years for their 
transfer, or they prefer to stay in such post in excess of two (2) years. 
e) Medical Examination - shall be provided compulsorily free of charge upon entry in the 
government service and every year thereafter during his tenure of employment: Provided, That 
where medical examination shows that medical treatment and/or hospitalization is necessary, 
medicines shall also be provided free by the Agency, regardless of whether the Government 
Accountant is confined in government or private hospital: Provided, further, That the cost of such 
medical examination and treatment shall be included as automatic appropriation in the Agency's 
annual budget. 


f) Compensation for Injuries - Government Accountants shall be protected against the 
consequences of employment injuries in accordance with existing laws. Injuries incurred while 
doing overtime work shall be presumed work-connected. 
g) As withholding and collecting agent of BIR, GSIS, HMDC, a Government Accountant shall 
be allowed honorarium as remitting officer. 
SECTION 16. Automatic Salary Adjustment. - Government Accountants who are Certified 
Public Accountants and enjoying permanent status, shall be granted an automatic five percent 
(5%) increase in his basic salary upon approval of this Act: Provided, That those who passed the 
CPA Licensure Examination or who have completed post graduate studies after the approval of 
this Act, shall also be entitled to the five percent (5%) automatic adjustment in basic pay. 
SECTION 17. Highest Basic Salary Upon Retirement. - Three (3) months prior to compulsory 
retirement, a Government Accountant shall automatically be granted salary increase to the next 
higher salary grade but in no case shall the salary difference be less than Five Hundred Pesos 
(R500.00): Provided, further, That compulsory retirement shall include staff members who died 
by reason of work connected sickness or accident or declared total permanent disability prior to 
compulsory retirement age irrespective of length of services provided that the services rendered 
were satisfactory. 
SECTION 18. Right to Self-organization. - Government Accountants shall have the right to 
freely form their own organization, to affiliate with or assist other organizations or government 
workers for purposes not contrary to law, in order to defend and protect their mutual interests and 
to obtain redress of their grievances through peaceful concerted activities: Provided, That under 
no circumstances shall they be allowed to declare, stage or join any strike or cessation of 
services, 
SECTION 19. The Right to Attend Periodic Workshops, Dialogues, Conferences, Seminars and 
Conventions. - Government Accountants being instrument of management of the various 
government agencies in graphing or directing the proper course of action towards the attainment 


of their respective plans and projects have the right to be properly updated of the continuing 
plans and strategies in maximizing the resources of government to obtain the best results at 
minimum costs. Heads of Agencies shall allow Government Accountants to attend training 
workshops, dialogues-conferences or seminars and conventions on official business. They shall 
also have the right to be informed periodically of the Agency's plans, programs and strategies. 
SECTION 20. Freedom from Interference or Coercion. - Government Accountants shall be 
guaranteed from interference and coercion from authorities outside his agency. 
SECTION 2 1. Human Resource Development/Management Study. - The CSC in coordination 
with the Association of Government Accountants of the Philippines shall conduct periodic 
human resource development/management study along the following areas: 
a) Adequacy of modern and updated facilities and supplies to render quality, timely and reliable 
financial reports; 
b) 
attain a sense of' worth and dignity of their work; 
Opportunity for government accountant staff to grow and develop their potentials and to, 
c) 
requirements and 30 trends; 
Staffing patterns and standards of accounting offices or units attuned to contemporary 
d) 
educational opportunities for personal growth and development; 
Ways and means of enabling the government accountants to avail themselves of 
e) 
disparity vis-a-vis other professions. 
Upgrading of working conditions, reclassification of position and salaries to correct 
SECTION 22. Prohibition Against Elimination and/or Diminution of Benefits. Nothing in this 
Act shall be construed to eliminate or in any way diminish benefits being enjoyed by government 
accountants of the time of the effectivity of this. Act. 


SECTION 23. Prohibition Against Double Recovery of Benefits. - Whenever other laws provide 
for the same benefits covered by this Act, the Government Accountant shall have the option to 
choose which benefits will be paid to him except when such benefit is considered part of an 
incentive package extended for the extra effort and/or time devoted by the Government 
Accountant. 
SECTION 24. Appropriations. - The amount necessary to implement the provision of this Act is 
hereby authorized to be appropriated out of any funds not otherwise appropriated. Thereafter, 
such sums shall be included in the General Appropriation of the government agencies or 
instrumentalities concerned. 
SECTION 25. Rules and Regulations. - The Civil Service Commission (CSC), in consultation 
with the Association of Government Accountants of the Philippines (AGAP), Inc. and such other 
professional organizations of government accountants, shall promulgate necessary rules and 
regulations to implement the provisions of this Act. 
SECTION 26. Separability Clause. - If any provision of this Act is declared unconstitutional or 
invalid, the remainder thereof not affected thereby shall continue to be in full force and effect. 
SECTION 27. Repealing Clause. - All laws, decrees, orders, rules and regulations or' other 
issuance or parts thereof inconsistent with the provision of this Act are hereby repealed, amended 
or modified accordingly. 
SECTION 28. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at 
least two (2) newspapers of general circulation. 
Approved,