FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

1646

House Bill No.
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 Accountants (CPAs) 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 (IIAP).

The bill introduced reforms 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:
1. 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 contro! systems as a primary responsibility of
heads of agencies, government corporations and local government
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 such that reliance is placed
mainly on the Commission on Audit for the control on expenses and on use of
the government's resources. The internal contro! 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.

The management tools that the system established in this bill are made
available for the sincere and competent administrators to reduce graft and
corruption in government offices.

In view of the foregoing considerations, early passage of this bill is
earnestly sought.

.

RUFUS B. ROPRIGUEZ

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRES: )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No_ 1646

AN ACT
PROFESSIONALIZING THE GOVERNMENT ACCOUNTING SERVICE TO
SERVE AS A TOOL FOR EFFECTIVE MANAGEMENT AND CONTROL OF
GOVERNMENT RESOURCES, CREATING FOR THE PURPOSE THE
GOVERNMENT ACCOUNTANCY OFFICE UNDER THE DEPARTMENT OF
BUDGET AND MANAGEMENT AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

GENERAL PROVISIONS

SECTION 1. Title. This Act shall be known and cited as the
“Government Accounting Act of 2010."

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 of ensuring efficiency, economy and effectiveness in
government operations. The responsibility to uphold that such policy is faithfully
adhered to rests directly with the chief or head of the government agency
concerned,

For this purpose, all government transactions shall be properly
documented, recorded, classified 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:

1. "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

2. "Budgetary accounts” refer 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.

3. “General accounts" refer to the unappropriated surplus or
uncommitted resource of the Government, the utilization of which shall require
an enabling act of Congress.

4. “Resources” refer to the actual assets of any agency of the
Government such as cash, instruments convertible to money, receivables,
lands, buildings, as well as contingent assets such as estimated revenues
applying to the current fiscal period not accrued or collected, and bonds
authorized and unissued.

5. “Receipts” refer to all collections received by any collecting officer
irrespective of source and for whatever purpose.

6. “Revenues” refer 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.

8."Accrued income” represents revenues eamed during and pertaining
to the current fiscal year not yet collected as of the end of the year.

9. “Obligation” represents goods and services ordered, without regard to
when ordered, delivered or paid.

10.*Cost” represents value of goods and services consumed, without
regard when ordered, delivered or paid

11. “Disbursement” represents bills paid without regard to when the
goods and services were ordered, delivered or paid.

12. “Expense” means any item or class of cost of (or loss from) carrying
on an activity, a present operating cost, or representing an irrevocable cost or
loss.

13. “Expenditure” means the incurring of a liability, the payment of cash,
or the transfer of property for the purpose of acquiring an asset or service or
setting a loss; when unqualified, the accrual basis of accounting is assumed.

14. “Surplus” is the excess of revenues over expenditures in a given
fiscal year.

15. “Deficit” is the excess of expenditures over revenues in a given fiscal
year.

SEC. 4. Fundamental Principle. — Financial transactions and
operations of any government agency shall be governed by the fundamental
principles set forth hereunder, to wit

(1) No money shall be paid out of any public treasury or depository
except in pursuance of an appropriation law or other specific
statutory authority;


(2) Government funds or property shall be spent or used solely for

legitimate public purposes;

Trust funds may be spent only for the purpose for which that trust

was created or for which the funds were received.

Fiscal responsibility or accountability shall, to the greatest extent, be

shared by all those exercising authority over the financial affairs,

transactions, and operations of the agency;

Disbursement or disposition of government funds or property shall

bear the approval of the proper officials;

(6) Claims against government funds shall be supported with complete
documentation;

(7) All laws and regulations applicable to financial transactions shall be
faithfully adhered to;

(8) Generally accepted principles and practices of accounting as well as
of sound management and fiscal administration shall be observed,
provided that they do not contravene existing laws and regulations.

(3)

(4)

()

SEC. 5. Organizational and Functional Framework and Delineation
of Accounting Responsibilities. — The organizational and functional
framework and accounting responsibilities shall be delineated as follows:

(1) Pursuant to the primary fiscal responsibility 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 accordance with its mandate;

(2) At the top level, 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

(3) 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.

(4) The Bureau of Treasury in close coordination with the Government
‘Accountancy Office shall be responsible for cash accounting and debt
management.

(6) 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 from
submission of pertinent reports. It shall promulgate general accounting
principles and keep the general or unappropriated surplus accounts.

CHAPTER |
BASIC POLICIES AND STANDARDS OF GOVERNMENT ACCOUNTING

SEC. 6. Concept and Basic Features of Government Accounting. -
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.

2. 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.

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;

4, 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;

5. The accounting system shall permit effective administrative control of
funds and operations, program management and internal audit and appraisal;

6. 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;

7. 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

8. The accounts shall provide financial data useful for economic analysis,
and classification of governmental transactions, and assist in the development
of national accounts,

SEC. 8. General Standards of Government Accounting and
Reporting. - Government accounting shall adopt the following general
standard:

1. Except as may otherwise be specifically provided by law, all moneys
and properties officially received by a public officer in any capacity or upon any
‘occasion must be accounted for as government funds and properties.

2. The accounting system shall basically serve the broad purpose of
accountability and management needs;

3. 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 accounting;

4. 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;

5. A complete set of books of 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;



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;

7. Reports must present factual data useful for evaluation, monitoring
and control of operations at different levels of management;

8. 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;

9. The accounting function shall be performed by persons with adequate
knowledge of government accounting; and

10. An agency accounting manual shall be developed and maintained by
each agency upon installation of its accounting system

In accordance therewith, Sections 63 to 124 of Presidential Decree No.
1445 and Sections 40 to 53, Book V, Title |, Sub-title B, of Executive Order No.
292 are hereby repealed.

CHAPTER II
CENTRAL GOVERNMENT ACCOUNTING AUTHORITY

SEC, 9, Establishment of Central Government Accounting
Authority. - There shall be created and established a Central Government
Accounting Authority, herein referred to as the Government 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. 10 . Statement of Objectives. - The following are the specific
objectives of the Government Accountancy Office:

1. To initiate government accounting reforms needed in achieving
effective control of funds in-flow and outflow 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 Government Accountancy Office; Deputies;
Qualifications; and Salary. —

1. The GAO shall be headed by an Accountant General whose rank
shall be equivalent to a Department Undersecretary. He shall be assisted by
two (2) deputies, whose ranks shall be equivalent to Department Assistant
Secretaries.

2. The Accountant General shall 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.

3. The Accountant General and each deputy shall receive an annual
salary as may be provided by law.

SEC. 12. The Office of the Accountant General. -

4, 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. 13, The Central Offices and Regional Accounting Services. -
The GAO shall organize offices to handle the following areas of accounting}
(1) technical accounting services;
(2) administration of chart of accounts and maintenance of budgetary
control accounts;
(3) systems and training;
(4) national government accounting;
(6) local government accounting;
(6) government corporation accounting;
(7) financial management information; and
(8) decentralized accounting services.

These offices 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 III
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:

(1) The design and prescription of accounting and financial reporting

systems,

(2) The administration of the Government Chart of Accounts;

(3) The keeping of the central books of accounts of the Government; and

(4) The preparation of government-wide management accounting

SEC. 15. Keeping the Books of Appropriated Funds of the National
Government. - The Department of Budget and Management through the
Government Accountancy Office shall keep and maintain the central books of
accounts of the appropriated funds of the National 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 (5) working
days after the prescribed deadline for its submission.

SEC. 18. Power to Exact Compliance with Financial Reporting
Requirements. - The GAO shall have the power to exact strict compliance with
timely financial reporting requirements from all agencies of the Government.

SEC. 19. Adjustment of Accounts between 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 Indebtedness 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. Submission of the Annual Consolidated Financial Report.
= The GAO, through 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 audited
annual consolidated financial report reflecting the results of government
‘operations,

CHAPTER IV
AGENCY ACCOUNTING FUNCTIONS

SEC. 22. Organization and Functions. - There shall be created in
every government agency an accounting 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:

(1) Maintain the agency books of accounts;

(2) Analyze, record, classify and summarize all transactions involving the

Teceipt and disposition of government funds and properties;

(3) Prepare financial statements and interpret the results of financial

operations for agency management decision-making purposes;

(4) Prepare regular financial reports for the budgetary control purposes

for guidance of agency management and for reporting to the DBM

through the GAO;


(8) Prepare and submit accounting reports required by the Commission
‘on Audit; and
(6) Certify to availability of funds.

SEC. 23. Keeping of Accounts. ~

(1) 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;

(2) The highest standards of honesty, objectivity and consistency shall
be observed in the keeping of accounts to safeguard against erroneous,
inaccurate or misleading information.

SEC. 24. Recording of Financial Transaction. - 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 Physical Reports and Statements. -

(1) 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 national security
purposes.

(2) 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.

(3) The physical reports shall include the identification of the approved
units or work measurements, work targets, work accomplished and manpower
utilized for each budgeting function, program or project.

SEC. 26. Submission of Reports. -

(1) All heads of accounting 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.

(2) 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 responsible officials of the various agencies to
submit trial balances, physical inventory reports, current plantilla of personnel,
and such other reports as may be necessary for the exercise of its functions,
including physical performance indicators report.

(3) 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.

(4) 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 that may be instituted against such concerned official or
employee

CHAPTER V
INTERNAL CONTROL SYSTEM

SEC. 27. Concept of Internal Control - 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 managerial policies

SEC. 28, Installation of Internal Control System. - 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 Control System. - 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:

1. 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. Organization. - 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
conduct 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 equipment before replacement
and disposal

6. 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.

Subsections 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 Responsibilities. - 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 the Internal Control Unit. - All
management reports required by central fiscal agencies shall be certified
correct by the head of the internal control unit and the agency head who shall
be liable solidarily with each other for any malfeasance and misrepresentation
which may later on be discovered by appropriate authorities.

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 Supervision. - The Government Accountancy
Office 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 shall conduct management audit
of government agencies to check on management adherence to prescribed
intemal control standard and effect immediate remedial measures if existing
internal control system is found weak and inadequate.

FINAL PROVISIONS

SEC. 37. Reorganization of the Department 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. Administrative Disciplinary Action. - Subject to such rules
and regulations as may be 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 for 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 rules and regulations issued pursuant thereto, shall be punishable by a fine
not exceeding Five Hundred Thousand Pesos (P500,000.00) 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 office 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 violation 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, allowances 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 Regulations. - The GAO shall
formulate and issue the necessary implementing rules and regulations, except
as otherwise specifically provided in this Act.

SEC. 42. Separability 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 two (2) newspapers of
general circulation.

Approved.