RMC No. 24-2014: Publishes the full text of DBM Circular Letter No. 2013-16B entitled “Addendum to DBM Circular Letter No. 2013-16 Re: Expanded Modified Direct Payment Scheme (Expanded MDPS) for Accounts Payable (A/Ps) of National Government Agencies/Operating Units (NGAs/OUs)”

Key points

1. Continued use of MDS checks. NGAs/OUs continue to issue Modified Disbursement System (MDS) checks to pay A/Ps to the subject creditors. After advice from the MDS-Government Servicing Banks, DBM will issue another Circular on when the Advice to Debit Account (ADA) per List of Due and Demandable A/Ps is used for government corporations and utility companies.
2. Small or hard-to-pay creditors. Creditors with small transactions, such as claims lower than the amount needed to open or keep a bank account, or creditors who cannot conveniently be paid through ADA as the Agency Head determines, may be paid from the agency’s Petty Cash Fund or Cash Advance. This follows the Commission of Audit guidelines on using and liquidating cash advances.

Who is affected

• National Government Agencies and Operating Units
• Creditors with small transactions

Deadlines and effectivity

• Issued April 14, 2014