RMC No. 25-2014: Publishes the full text of DBM Circular Letter No. 2013-16 entitled “Implementation of the Expanded Modified Direct Payment Scheme (ExMDPS) For Accounts Payable Due Creditors/Payees of All National Government Agencies (NGAs)”

Key points

1. Coverage. The Circular covers due and demandable A/Ps of NGAs/OUs, including pension benefits but excluding Terminal Leave and Retirement Gratuity (TL/RG) benefits. Only valid and legal A/Ps for goods, services or projects delivered or completed and accepted are considered for payment.
2. Recording of obligations. Obligations for goods, services or projects not yet delivered or accepted are not recorded as A/Ps at year end. They are recognized as A/Ps on the date of delivery, rendition or completion and acceptance.
3. Payment through ExMDPS. Starting January 1, 2014, A/Ps are settled through the ExMDPS, charged against Notice of Cash Allocations (NCAs) in the regular MDS sub-account (Common Fund). Under Circular Letter No. 2013-12 (dated November 21, 2013), NCAs for any month of a quarter are valid until the last working day of the 3rd month of that quarter.
4. LDDAP-ADA. All NGAs/OUs use the List of Due and Demandable Accounts Payable-Advice to Debit Account (LDDAP-ADA), an accountable form, under the Commission on Audit’s rules on accountable forms.
5. Creditor bank accounts. NGAs/OUs encourage creditors to open a Current or Savings Account with any branch of their MDS-GSB, or with a bank in the List of Participating Banks in the Electronic Peso Clearing System if that is not feasible. Creditors without an account with the agency’s MDS-GSB are paid by bank transfer, and payment by Manager’s Check from the MDS-GSB is discontinued.
6. NCAs and TL/RG benefits. DBM releases NCAs directly to operating units, and issuing Notices of Transfer of Allocation is discouraged. For TL/RG benefits, NCAs continue to be credited to the special MDS sub-account kept for that purpose.

Who is affected

• National Government Agencies and Operating Units
• Creditors and payees of NGAs

Deadlines and effectivity

• Starting January 1, 2014
• NCAs valid until the last working day of the 3rd month of the quarter
• Issued April 14, 2014