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THIRTEENTH CONGRESS OF THE 
1 
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REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
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9 
S.B. No. 
Introduced by Senator Jinggoy Ejercito Estrada 
'I 
EXPLANATORY NOTE 
This bill restructures and redesigns the existing outmoded government 
accounting system. While studies have been made in the past, including one 
commissioned to a US consulting firm in the early 1950s by the Budget Commission, 
the system essentially dates back to the colonial period. This will be the first time the 
country will have a law to govern Government Accounting. 
The draft of this bill was prepared by the Technical Working Group consisted of 
seasoned Certified Public Accountant (CPA) practitioners representing professional 
accounting associations, a representative from the Department of Justice advising on 
legal aspects, and CPAs from the Economic Affairs staff. Advise was also kindly 
provided by former Budget Secretaries. The professional accounting associations 
represented in the Technical Working Group were the Philippine Institute of CPAs 
(PICPA), Association of CPAs in Commerce and industry (ACPACI), Association of 
CPAs in Public Practice (ACPAPP), Government Association of CPAs (GACPA), and 
Institute'of Internal Auditors Philippines (HA). 
The bill introduced reform? in the accounting service so that accounting may 
serve as an effective tool for ,managing government offices, as it does in private 
business. Accurate, relevant and timely financial information from the accounting 
system is essential for monitoring of programs and projects, budget control, economic 
analysis, policy formulation, decision-making, and spotting possible areas for 
anomalies. 
Salient features of the bill include the following: 
I. Reorganization of the Department of Budget and Management. 
2. 
Identification of the purposes to be served by the government accounting 
system. 
3. Institution of internal control systems as a primary responsibility of heads of 
agencies, government corporations and local gdvernment units. 
4. Vesting responsibility in the Executive Branch for the accounting function as 
an essential element in management of the financial and fiscal affairs of 
Government. 


5. Delimitation of the accounting jurisdiction of the Commission on Audit to: 
a. Promulgation of general government accounting principles; 
b. Keeping of the general accounts or unappropriated surplus accounts. 
6. Creation of a Central Government Accounting Authority to be solely 
responsible for administration of the government accounting service and 
preparation of government wide financial reports. 
7. Adoption of the “accrual basis” of accounting in addition to the “obligation” 
and “cash accounting, so as to generate more useful financial information. 
8. Delineation of accounting responsibilities of different agencies involved in the 
various functional accounting areas. 
The bill will streamline and improve effectiveness of the financial and internal 
control system at different levels of the bureaucracy. At present such control is not 
available to managers in government so that relianbe is placed mainly on the 
Commission on Audit for the control on expenses and on use of the Government’s 
resources. The internal control system set up in this bill will provide government 
managers with the information and tools for more efficient, economical and effective 
management of government operations and resources. This should contribute to 
reducing red tape and, by providing timely and accurate information on transactions, 
help minimize the causes and incidence of graft and corruption in government offices. 
For these reasons, particularly the management tools that the system 
established in this bill makes available for sincere and competent administrators to 
reduce graft and corruption in government offices, urgent passage of this bill is 
earnestly requested. 
u 
Senator 


THIRTEENTH CONGRESS OF THE 1 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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S. B. No. 
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Introduced by Senator JINGGOY EJERClTO ESTRADA 
AN ACT 
PROFESSIONALIZING THE GOVERNMENT ACCOUNTING SERVICE TO SERVE 
AS A TOOL FOR EFFECTIVE MANAGEMENT AND CONTROL OF GOVERNMENT 
RESOURCES, CREATINF FOR THE PURPOSE THE GOVERNMENT 
ACCOUNTANCY OFFICE UNDER THE DEPARTMENT OF BUDGET AND 
MANAGEMENT AND FOR OTHER PURPOSES 
Be if enacted by fhe Senafe and House of Represenfafives of fhe Philippines in 
Congress assembled: 
GENERAL PROVISIONS 
SECTION I. 
Title. This Act shall be known ahd cited as the "Government 
Accounting Act of 2004." 
SEC. 2. Declaration of Policy. All resources of Government shall be managed, 
expanded or utilized in accordance with law and regulations, and safeguarded against 
loss or wastage through illegal and/or improper disposition, with a view to ensuring 
efficiency, economy and effectiveness in government operations. The responsibility to 
uphold that such policy is faithfully adhered to rest directly with the chief or head of the 
Government agency concerned. 
For this purpose, all government transactions shall be properly documented, 
recorded, clas$ified and interpreted into meaningful data; and communicated on a 
timely basis to fiscal authorities concerned so that the information generated therefrom 
can be made useful for economic analysis, policy formulation and decision-making 
purposes. The responsibility to document and record faithfully said transaction shall 
rest with government accountants. 


SEC. 3. Definition of Terms. - Wherever used in this Act, the following terms 
shall be taken and understood in the sense indicated hereunder, unless the context 
otherwise requires: 
I. “Government accounting” is the proper recording of all receipts and 
expenditures and other financial transactions of Government or any of its subdivisions, 
agencies or instrumentalities, the maintenance of records that reflect the propriety of 
transactions and give evidence of accountability for assets and other resources 
available for use, and the classification of data in a way that provides useful information 
for control and for effective and efficient management of government operations, in 
accordance with generally-accepted accounting principles where applicable. 
“Budgetary accounts” refers to the funds, resources, or surplus already 
appropriated and made available for government expenditure during a given fiscal year, 
consisting of appropriation, expenditure, revenue and borrowing accounts. 
2. 
3. 
“General accounts” refers to the unappropriate surplus or uncommitted 
resource of the Government, the utilization of which shail require an enabling act of 
Congress. 
“Resources” refers to the actual assets of any agency of the Government 
such as cash, instruments representing of convertible to money, receivables, lands, 
buildings, as well as contingent asset such as estimated revenues applying to the 
current fiscal period not accrued or collected, and bonds duthorized and unissued. 
irrespective of source and for whatever purpose. 
“Revenues” refers to earnings of the Government arising out of tax levies, 
regulatory and investment transactions, including those in exchange for direct services 
rendered by government agencies to the public. 
7. 
“Income” refers to revenues earned during and accruing to the 
Government for a particular fiscal year. 
the current fiscal year not yet collected as of the end of the year. 
when ordered, without regard to when ordered, delivered, or paid. 
4. 
5. 
“Receipts” refers to all collections received by any collecting officer 
6. 
a. 
“Accrued income” represents revenues earned during and pertaining to 
“Obligation” represents goods and services ordered, without regard to 
‘Cost I‘ represents value of goods and services consumed, without regard 
“Disbursement” represents bills paid without regard to when the goods 
9. 
IO. 
ordered, delivered, or paid 
11. 
and services were ordered, delivered, or paid. 
activity, a present operating cost, or representing an irrevocable cost or loss. 
12. 
“Expense” means any item or class of cost of (or loss from) carrying on an 


year. 
was created or for 
(I) Pursuant to the primary fiscal responsibitity of the agency head, 
management decisions and prerogatives of such agency head shall be respected by 
other government agencies, and the commission on Audit shall be authorized only to 
review these decisions in aCCQ~danGe 
with its mandate; 
which the funds were received. 


(2) 
At the top Jevel, the Government Accountancy Office (GAO) created under 
Section 9, shall be responsible for accounting of all resources of the Government. It 
shall provide overall technical supervision and direction of the agency accounting 
function and keep the budgetary accounts. It shall be responsible for the submission of 
the consolidated financial results of operation of the government. 
At the agency level, agency accountants shall be responsible for agency 
accounting functions, They shall be responsible for the preparation and submission of 
financial reports required by the agency head and higher fiscal authorities. 
(3) 
(4) 
The Bureau of Treasury in close coordination with the Government 
Accountancy Office shall be responsible for cash accounting and debt management. 
(5) 
The Commission shall conduct audits of and prepare audit reports 
covering the overall financial operation of the Government. These audits shall be 
performed on a post-audit basis within a reasonable period of time frdm submission of 
pertinent reports. It shall promulgate general accounting principles and keep the general 
or unappropriated surplus accounts. 
CHAPTER 1. 
BASIC POLICIES AND STANDARDS OF GOVERNMENT ACCOUNTING 
SEC. 6. 
Concept and Basic Features of Governmenf Accounfing. - 
Government accounting is a process in which the transactions of an operating agency 
are documented, classified, and recorded for the purpose of accumulating and providing 
financial information essential to the conduct of designated activities. It includes the 
design of accounting systems which involves: (1 the development of recording 
methods, (2) the documentation and review of financial transactions, (3) the 
maintenance of records and books of accounts, and (4) the preparation of financial and 
other reports, 
SEC. 7. 
Purposes of Government Accounting. - The range of purposes 
to be served by government accounting is: 
1. 
The accounting system shall be so designed to comply with the 
constitutional, statutory and other legal requirements and generally accepted accounting 
principles, when applicable. 
The accounting system shall be related to the budget classifications 
since budgetary and accounting functions are complementary elements of financial 
management and therefore must be closely integrated. 
2. 


3. 
The accounts shall clearly identify the objects and purposes for which 
funds have been received and expended, and the agency responsible for custody and 
use of funds in the program implementation; 
The accounting system shall be maintained in a way to facilitate audit by 
external review authorities, and to readily furnish the information needed for an effective 
audit; 
The accounting system shall permit effective administrative control of 
funds and operations, program management and internal audit and appraisal; 
The accounts shall effectively disclose the economic and financial results 
of programs operations, including the measurement of revenues, identification of costs 
and determination of the operating results (the surplus or deficit position) of the 
government and its programs and organizations; 
The accounting system shall be capable of serving the basic financial 
information needs of development of planning and programming, and the review and 
appraisal of performance in physical and financial terms; and 
The accounts shall provide financial data useful for economic analysis and 
classification of governmental transactions, and assist in the development of national 
accounts , 
4. 
5. 
6. 
7. 
8. 
SEC. 8. 
General Standards of Governmenf Accounting and Reporfing. 
- Government accounting shall adopt the following general standards. 
1. 
Except as may otherwise be specifically provided by law, all moneys and 
property officially received by a public officer in any capacity or upon any occasion must 
be accounted for as government funds and property. 
2. 
The accounting system shall basically serve the broad purpose of 
accountability and management neyds; 
The accrual basis of accounting shall be employed as a basic component 
of management of government resources in addition to the existing cash and obligation 
accou n t i ng ; 
All financial transactions shall be property documented as the different 
phases of the transactions take place and shall be recorded on a double-entry basis; 
A complete set of books f accounts shall be maintained by agencies to 
whom allotments or sub-allotments advices have been released; agencies without 
allotments or ,sub-allotments but have financial accountabilities shall keep appropriate 
books of accounts as required by the GAO; 
3. 
4. 
5. 


6. 
The financial statements and accounting reports shall satisfy the 
information needs essential for purposes of : (a) budget accountability; (b) economic 
analysis, (c) policy formulation, (d) executive decision -making \, and (e) external audit; 
Reports must present factual data useful for evaluation, monitoring and 
7. 
control of operations at different levels of management; 
The basic accounting reports shall include the statement of fiscal 
operations, the balance sheet, costs of a given program or project, and statements of 
appropriation, allotment, obligation, expenditure and payable accounts and balances; 
The accounting function shall be performed by persons with adequate 
knowledge of government accounting; and 
An agency accounting manual shall be developed and maintained by each 
agency upon installation of its accounting system. 
In accordance therewith, Section 63 to 124 of Presidential Decree No. 1445 and 
Sections 40 to 53, book V, Title I, Sub-title B, of Executive Order No. 292 are hereby 
repealed. 
8. 
9. 
IO. 
CHAPTER ll 
CENTRAL GOVERNMENT ACCOUNTING AUTHORITY 
SEC. 9. 
Esfabiiskmenf of Central Government Accounting Aufhorify. - 
There shall be created and established a Central Government Accounting Authority, 
herein referred to as the Governvent Accountancy Office (GAO), under the Department 
of Budget and Management (DBM) which shall be solely responsible for the technical 
supervision of accounting functions in all government agencies. 
SEC. I O .  
Stafernenf of objectives. - The following are the specific 
objectives of the Government Accountancy Office: 
1. 
To initiate government accounting refoms needed in achieving effective 
control of funds in-flow and out-flow without necessarily constricting agency 
management thus allowing them to assume greater fiscal responsibility as provided by 
law; 
2. 
To improve accounting efficiency and capability at the agency operating 
level; and 
3. 
To facilitate preparation and submission of accounting and other financial 
reports for budget accountability, management decisions, and external audit purposes. 


SEC. 11. 
Head of the Go>ve~nment 
Accountancy Offices; Deputies; 
Qualifications; and Salary. - 
I .  
The GAO be headed by an Accountant General whose rank shall be 
equivalent to a Department Undersecretary. He shall be assisted by two deputies, 
whose ranks shall be equivalent to Department Assistant Secretaries. 
The Accountant General shail be appointed by the President for a term of 
seven (7) years. The Deputies shall be chosen by the President from among the Career 
Executive Services (CES) eligibles. In no case shall any one of them be appointed or 
designated in a temporary or acting capacity. 
2. 
3. 
The Accountant General and each deputy shall receive an annual salary 
as my be provided by law. 
SEC. 12. 
The Office of the Accountant General. - 
1. 
The Office of the Accountant General shall determine policies, promulgate 
government accounting rules and regulations and prescribe accounting systems, 
procedures and techniques and standards governing the performance by the agency of 
its duties and functions. 
2. 
It shall also formulate measures on internal control to ensure accuracy, 
integrity and reliability of accounting records and reports. 
SEC. 93. 
The Central Offices and Regional Accounting Services. - The 
GAO shall organize ofices to handle the following areas of accounting: 
technical accounting services; 
administration of chart of accounts and maintenance of budgetary control 
accounts; 
systems and training; 
national government accounting; 
local government accounting; 
government corporation accounting; 
financial management information; and 
decentralized accounting services. 


These off ices shall perform primarily staff functions, exercise technical 
supervision over the agency accounting services, and perform such other functions as 
may be assigned by the Accountant General. 
CHAPTER 111 
JURISDICTION, POWERS AND LINKAGES 
SEC. 14. 
General Jurisdiction. - The following powers and duties shall be 
within the functional jurisdiction of the Government Accountancy Office, to wit: 
procedures and techniques; 
(1 ) 
(2) 
(3) 
(4) 
financial reports. 
The design and prescription of accounting and financial reporting systems, 
The administration of the Government Chart of Accounts; 
The keeping of the central books of accounts of the Government; and 
The preparations of government-wide management accounting and 
SEC. 15. 
Keeping the Books of Appropriated Funds of fhe National 
Government. - The Department of Budget and Management thru the Government 
Accountancy Office shall keep and maintain the central books of accounts of the 
appropriated funds of the Nationd Government. 
SEC. 16. 
Examining Authority. - The GAO shall have the authority to 
examine the agency books of accounts for the purpose of ascertaining whether financial 
transactions are properly recorded and to determine compliance with budgetary and 
accounting rules and regulations. 
SEC. 17. 
Power to Withhold Release of Funds. - The GAO shall have the 
authority to withhold the release of notice cash allocation to agencies which have not 
complied with the financial reporting requirement fifteen (I 
5) working days after the 
prescribed deadline for its submission. 
SEC. 18. 
Power to Exact Gompdiance with Financial Reparting 
Requirernenfs. - The GAO shall haye the power to exact strict compliance with timely 
financial reporting requirements from ail agencies of the Government. 
SEC. 19. 
Adjustment ofAccaunts befween Agencies. - The GAO shall 
have the power, under such regulations as it may prescribe, to authorize and enforce 
the adjustment of accounts subsisting between various agencies of the Government. 


SEC. 20. 
Collection of lndebfedness due the Government. - The GAO 
shall, through proper channels, assist in the collection and enforcement of all debts and 
claims, and the restitution of all funds or the replacement or payment at a reasonable 
price of property, found to be due the Government, or any of its agencies, in the 
settlement and adjustment of its accounts. If any legal proceeding is necessary to that 
end, the GAO shall refer the case to the Solicitor General, the Government Corporate 
Counsel, or the legal staff of the creditor government office or agency concerned to 
institute such legal proceeding. The GAO shall extend full support in the litigation. All 
such moneys due and payable shall bear interest at the legal rate from the date of 
written demand by the GAO. 
SEC. 21. 
Submissian of the Annual Consolidated Financial Report. - 
The GAO, thru the Secretary of the Department of Budget and Management, shall 
submit within four (4) months after the end of the fiscal year, to the President, Congress 
and the Commission on Audit, an unaudited annual consolidated financial report 
reflecting the results of government operations. 
CHAPTER IV 
AGENCY AC~OUNTING FUNCTIONS 
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SEC. 22. 
Organization an& Functions. - There shall be created in every 
government agency an accaunting group to be headed by an accountant 
administratively under the head of the agency or under the financial management 
service, but technically under the GAO who shall perform the following functions: 
(I 
) Maintain the agency books of accounts; 
(2) Analyze, record, classify and summarize all transactions involving the 
receipt and disposition of government funds and property; 
for agency management decision-rnaking purposes; 
(3) Prepare financial statements and interpret the results of financial operations 
. 
(4) Prepare regular financial reports for the budgetary control purposes for 
guidance of agency management and for reporting to the DBM through the GAO; 
(5) Prepare and submit accounting reports required by the Commission on 
Audit; and 
(6) Certify to availability of funds. 


SEC. 23. 
Keeping of Accounfs. - 
( I )  The' accounts of an agency shall be kept in such detail as is necessary to 
meet the needs of the agency and at the same time be adequate to provide the 
information needed by fiscal or control agencies of the Government; 
The highest standards of honesty, objectivity and consistency shall be 
observed in the keeping of accounts to safeguard against erroneous, inaccurate or 
misleading information. 
(2) 
SEC. 24. 
Recording of Financial Transacfion. - Each government agency 
shall record its financial transactions and operations conformably with generally 
accepted accounting principles and in accordance with pertinent laws and regulations, 
and by using the standard chart of accounts as prescribed by the GAO. 
SEC. 25. 
Financial and Physicar Reports and Sfafernenfs. - 
(I) The financial reports prepared by the agencies shall comply with the 
specific requirements of applicable laws and regulations as to nature, accounting basis, 
content, frequency, and distribution as well as with all applicable restrictions pertaining 
to information classified for natioqal security purposes. 
The financial statements shall be based on official accounting records kept 
in accordance with law and the generally accepted accounting principles and standards 
and should be signed by agency heads and the Chief accountants who must be 
Certified Public Accountants indicating his CPA certificate number. 
The physical reports shall include the identification of the approved units 
or work measurements, work targets, work accomplished and manpower utilized for 
each budgeting functions, program or project. 
(2) 
(3) 
SEC. 26. 
Submission of Reports. - 
(I) All heads of accouhting units shall submit within two (2) months after the 
end of the fiscal year, to the GAO and the Commission on Audit, an annual financial 
report reflecting the results of the agency or program operations. 
Whenever deemed necessary in the exigencies of the service, the GAO 
may under regulations issued by it require the agency heads, chief accountants, budget 
officers, cashiers, disbursing officers, administrative or personnel officers, and other 
responsibie officials of the various agencies to submit trial balances, physical inventory 
(2) 


reports, current plantilla of personnel, and such other reports as may be necessary for 
the exercise of its functions, including physical performance indicators report. 
Failure on the part of the officials concerned to submit the required 
documents and reports at the time mentioned herein shall automatically cause the 
suspension of payment of their salaries until they shall have complied with the 
requirements of the GAO. 
Any other violation of the provisions of this Section shall likewise cause 
the suspension of payment of salaries, without prejudice to any other disciplinary action 
(3) 
(4) 
that may be instituted against such concerned official or employee. 
CHAPTER V 
INTERNAL CONTROL SYSTEM 
SEC. 27. 
Concept of Infernal ConfroL - Internal control is the plan of 
organization and all the coordinate methods and measures adopted within an 
organization or agency to safeguard its assets, check the accuracy and reliability of its 
accounting data, promote administrative and operational efficiency and encourage 
adherence to prescribed manageria4 policies. 
SEC. 28. 
Installafion of Internal Confrol Sysfeem. - The installation and 
implementation of a sound system of internal control shall be the direct responsibility of 
the agency head. For this purpose, such agency head shall ensure that all actions of the 
officials concerned are properly monitored and coordinated. 
SEC. 29. 
Internal Confrol §ysfem. - Subject to the provisions of existing 
laws, rules and regulations and this Act, each Agency shall set up internal control 
systems for the following areas: 
I. 
Cash receipt and disbursement 
2. Property, supplies and other inventory items; 
3. Accounting and bookkeeping; 
. 4. Personnel recruitment, promotion and separation; and 
5. Procurement, purchases, storage, requisitions, issuance and disposal. 
SEC. 30. 
Organizafion. - There shall be created in every government 
agency an internal control unit which shall be responsible for assuring that steps are 
taken to safeguard the assets of the agency, checking the accuracy and reliability of the 
accounting data, promoting administrative and operational efficiency, encouraging 


adherence to prescribed managerial policies, and may conduGt such other activities to 
achieve these ends. 
For this purpose, the agency head may absorb as member/s of the staff of the 
internal control unit the resident COA personnel at the time of the effectivity of this Act. 
SEC. 31. 
Functions. - The internal control unit shall have the following 
functions: 
1. 
Conduct spot cash audit of regular/special collecting disbursing officers of 
the agency. 
2. 
Pre-Audit agency transactions. 
3. 
Review contracts before awarding. 
4. 
Inspect properties delivered. 
5. 
Certify unserviceable and condemned equipments before replacement 
and disposal. 
Keep custody, and be responsible for the safekeeping and preservation of 
paid expense vouchers, journal vouchers, stubs of treasury warrant or checks, reports 
of collections and disbursements and similar documents together with their respective 
supporting papers. 
6. 
Subsection 1 to 4 may be performed by the internal control unit on test basis or 
sampling method, in accordance with the implementing rules and regulations to be 
issued by GAO. 
SEC. 32. 
Reporting Responsibilifies. - The head of the internal control unit 
shall submit reports directly to the head of the agency, copy furnished the DBM and the 
Commission on Audit, of his findings, observations and recommendations to maintain a 
sound financial management of the agency resources. 
SEC. 33 
Liability of the Head of fhe Infernal Control Unit. - All 
management reports required by central fiscal agencies shall be certified correct by the 
central fiscal agencies shall be certified correct by the head of the internal control unit 
and the agency head who will shall be liable soljdariiy with each other for any 
malfeasance, and misrepresentation which may later on the discovered by appropriate 
authorities. 


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SEC. 34. 
Implementing Rules and Regulations. - As part of its functions, 
the GAO in coordination with the Commission on Audit shall develop and promulgate 
internal control standards and procedures to be adopted by all government agencies. 
SEC. 35. 
Technical Sqpervision. - The Government Accountancy Off ice 
shall provide technical supervision and support in the development, installation and 
implementation of the agency internal control system. 
SEC. 36. 
Management Audit. - As the exigency of the service requires, the 
Department of Budget and Management shaU conduct management audit of 
government agencies to check on management adherence to prescribed internal control 
standard and effect immediate remedial measures if existing internal control system is 
found weak and inadequate. 
FINAL PROVISION 
SEC. 37. 
Reorganization of fhe Depadmenf of Budget and Management. 
- Within sixty (60) days after the approval of this Act, the Department of Budget and 
Management shall reorganized its functions and structure in accordance with the 
provisions herein. 
SEC. 38. 
Adminisfrafive Disciplinary Action. - Subject to such rules and 
regulations as may formulated by GAO and approved by the President, any unjustified 
failure by the public officer concerned to comply with any requirement imposed in this 
Act shall constitute neglect of duty and shall be a ground fro administrative disciplinary 
action against the said public officer who, upon being found guilty thereof after hearing, 
shall be meted out such penalty as is commensurate with the agree of his guilt in 
accordance with the Civil Service Law. Repeated unjustified failure to comply with the 
requirements imposed in this Act shall be conclusive proof that the public officer 
concerned is notoriously undesirable and corresponding penalties shall be imposed 
accordingly. 
SEC. 39. 
Penal Provisions. - Any violation of the provisions of this Act or 
any rules and regulations issued pursuant thereto, shall be punishable by a fine not 
exceeding Five hundred thousand pesos (P500, 
00.00) or by imprisonment for a period 
not exceeding twelve (12) years or both, in the discretion of the court, without prejudice 
to the provisions of the Anti-Graft and Corrupt Practices Act and other applicable laws. 
In addition thereto, the penalty of perpetual disqualification from holding any public 


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off ice and/or temporary disqualification from exercising any calling or profession shall be 
imposed when the court deemed it appropriate. 
Any proceeds obtained by reason of any vioiation of this Act or any rules and 
regulations issued pursuant thereto shall be forfeited in favor of the Government. 
SEC. 40. 
Appropriation. - The necessary appropriations to implement the 
provisions of this Act consisting of the annual operating expenses of the Offices, 
including the salaries, allowance and other emoluments of all the its officials and 
employees shall be included in the annual General Appropriations Law. The usage of 
these funds shall be governed by the general appropriations and other budget laws. 
SEC. 41. 
Implementing Rules and Regulafbns. - The GAO shall formulate 
and issue the necessary implementing rules and regulations, except as otherwise 
specifically provided in this Act. 
SEC. 42. 
Separabilify Clause. - Should any provision of this Act or any part 
thereof be declared invalid, the other provisions, so far as they are separable from the 
invalid one, shall remain in force and effect. 
SEC. 43. 
Repealing Clause. - All laws, executive orders, proclamations, 
decrees, instructions, rules and regulations, or part thereof, which are inconsistent or in 
conflict with any provision of this Act shall be deemed repealed or modified accordingly. 
SEC. 44. 
Effectivity Clause. - This Act shall take effect thirty (30) days after 
its complete publication in the Official Gazette or in complete publication in the 
newspaper of general circulation, 
Approved,