Chapter 6

DISBURSEMENTS



Sec. 1. Scope.This Chapter covers the rules and regulations to be followed in the disbursement of public funds, the monitoring of receipt and utilization of NCA/NTA, preparation and processing of DV/Payroll; preparation and issuance of checks; payment by cash; granting, utilization and liquidation/replenishment of cash advances; payment through ADA; remittance of taxes withheld through TRA; availment of foreign loansthrough suppliers credit/constructive cash; and payment of operating requirements on FSPs through CDC.

Sec. 2. Definition of Terms. For the purpose of this Manual, the terms used shall be construed to mean as follows:


a. Accounts Payable - refers to valid and legal obligations of NGAs/OUs, for which, goods/services/projects have been delivered/rendered/completed and accepted, regardless of the year when these obligations were incurred.

b. Advice to Debit Account - refers to an authorization issued by the NGA/OU appearing in the lower portion of the List of Due and Demandable Accounts Payable-Advice to Debit Account (LDDAP-ADA). It serves as instruction to the Modified Disbursement System, Government Servicing Banks (MDS-GSBs) to debit a specified amount from its available NCA balance under regular MDS sub-account for payment of creditors/payees through the ExpandedModified Disbursement Payment Scheme(ExMDPS).

c. Agency - refers to any department, bureau or office of the national government, or any of its branches and instrumentalities, or any political subdivision, as well as any GOCCs, including its subsidiaries, or other self-governing board or commission of the government.

d. Authorized Card Holder - refers to a responsible official to whom a Purchase Card is issued for purposes of making official purchases within specific categories enumerated in Annex A of Joint Memorandum No. 2014-01 dated May 15, 2014.

e. Billing Entity - refers to the accounting unit of the concerned participating agency responsible in the consolidation of the billing statement from the Credit Card Company (CCC) and payment of the said billing agency.

f. Credit Card Company - refers to Citibank as the authorized credit card service provider for the CPC System.

g. Commercial Check - refers to a check issued by government agencies chargeable against the agency's checking account with AGDBs. These are covered by income/receipts authorized to be deposited with AGDBs; and funding checks received by Operating Units from Central/Regional/Division Offices, respectively.

h. Direct Payment System - refers to the payment procedure whereby the MDS-GSB shall, upon receipt of NCA an LDDAP-ADA from DBM pay the CCC not earlier than 24 hours but not later than 48 hours, through direct credit to the CCC current account.

i. Disbursements - constitute all cash paid out during a given period in currency (cash) or by check/ADA. It may also mean the settlement of government payables/obligations by cash, check or ADA. It shall be covered by DV/Petty Cash Voucher (PCV)/Payroll.

j. ExpandedModified Disbursement Payment Scheme - refers to the payment procedures whereby the MDS-GSB shall pay the creditors/payees listed in the LDDAP-ADA not later than 48 hours but not earlier than 24 hours upon receipt of the said document from the NGA/OU:


1. Direct credit to the creditor's current/savings/ATM account (CA/SA/ATM) maintained with MDS-GSB; or

2. Bank transfer, if creditor's account is maintained outside the agency's MDS-GSB, where corresponding bank charges shall be borne/paid by the creditor/payee concerned.




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