MODES OF DISBURSEMENT

ORACLE MODES OF DISBURSEMENT

A. Checks

  • Types of Checks

    1. Modified Disbursement System Checks

      • Issued by government agencies.

      • Chargeable against the account of the Treasurer of the Philippines.

      • Maintained with different MDS-GSBs.

    2. Commercial Checks

      • Issued by National Government Agencies (NGAs).

      • Chargeable against Agency Checking Account with Government Servicing Banks (GSBs).

      • Covered by authorized income/receipts deposited with Authorized Government Deposit Banks (AGDBs).

  • Usage

    • Used for regular expenses not conveniently paid via ADA (Advice to Debit Account) or PCF (Petty Cash Fund).

  • Reporting and Recording

    • Transaction records must include both released and unreleased checks.

B. Cash

  • Purpose of Cash

    • Constitutes payments from cash advances granted to authorized disbursement officers.

    • Covers personal services, petty expenses, and Maintenance and Other Operating Expenses (MOOE) required for field operations.

  • Accountability Protocols

    • Cash advances must be covered by approved disbursement vouchers/payrolls/petty cash vouchers.

    • Governed by COA (Commission on Audit) rules:

      • Cash advances must serve a legally authorized specific purpose.

      • Liquidation of cash advances is required as soon as the purpose is served.

      • Previous advances must be settled before granting new ones.

    • Disbursing officers must be properly bonded; cash advance limits capped by this bond.

C. Advice to Debit Account (ADA)

  • Authorization Document

    • An instruction from a government agency to debit a specified amount from available NCA (National Cash Allocation) for payment.

  • Requirements

    • Only applicable for entities listed in the LDDAP-ADA.

D. Tax Remittance Advice

  • Document Nature

    • Serially-numbered document for remittance of withheld taxes by NGAs.

  • Regulatory Basis

    • Basis for tax collections recorded by the BIR and BTr (Bureau of the Treasury).

E. Cash Disbursement Ceiling (CDC)

  • Scope

    • Authorization allowing agencies with foreign posts to utilize collections for operational needs.

    • All disbursements must be backed by duly approved disbursement vouchers/payrolls.

F. Direct Payment Method (Issuance of NCAA)

  • Process Overview

    • Transactions covered by NCAA (Notice of Cash Allocation) for payments of goods/services directly from lending institution to suppliers/contractors.

  • Documentation Required

    • Requires inspection reports, shipping documents, and certified billing copies.

    • Prepare journal entries (JEVs) in accordance with records concerning goods and payments.

Additional Notes on Cash Advances

  • Cash Advances for Payroll

    • Granted for paying salaries, wages, benefits, and must not be used for encashments of checks or for settling prior advances.

    • Liquidation should occur within 5 days post pay period.

  • Petty Operating Expenses

    • Aimed at covering small recurring expenses for a month using an imprest system, with specific transaction limits and restrictions.