Procedural Guidelines for the Establishment of Treasury Checking Accounts for Agencies

November 18, 1976 REVENUE MEMORANDUM ORDER NO. 49-76 TO : All Revenue Officials and Others Concerned SUBJECT : Procedural Guidelines for the Establishment of Treasury Checking Accounts for Agencies (TCAA) Relative to the Implementation of the Sub-Allotment System in Regional Offices Pursuant to Letter of Instructions No. 61 dated March 5, 1973, and in connection with the implementation of a sub-allotment system in the regional offices, all disbursements in these offices (previously paid through cash advances given to the regional special disbursing officers) shall be paid by checks drawn against the Treasury Checking Accounts for Agencies (TCAA). For this purpose, the following procedural guidelines are hereby established for your guidance and compliance: 1. Revenue officials duly authorized by this Office and deputized by the Treasurer of the Philippines to sign/countersign TCAA checks to be drawn against accounts to be maintained with the Philippine National Bank or the Philippine Veterans Bank, shall accomplish properly and submit their respective TCAA specimen signature cards. For details, please refer to Treasury Memorandum Circular No. 18-74 dated August 13, 1974 and Treasury Memorandum Circular No. 10-76 dated June 22, 1976. 2. Procurement/requisition of TCAA checks from the Bureau of Treasury shall be made by the Central Office which shall in turn cause the proper delivery of these checks to the respective authorized disbursing officers in the Regional Offices. (Please refer to Treasury Memorandum Circular No. 5-74 dated June 17, 1974). For this purpose, the Chief, General Services Division, is hereby designated to act as overall custodian of requisitioned blank TCAA checks. (See Budget Circular No. 235-A, dated March 26, 1974). It shall also be his duty to requisition TCAA checks from the Bureau of Treasury. cdt 3. Upon adoption of the use of TCAA checks, the Special Disbursing Officers in the regional offices shall refund to the Central Office the balances of their respective cash advances. If the cash advances are kept in checking accounts with commercial banks, the balances to be refunded shall be the balance after considering the outstanding checks, and the return shall be effected by drawing a check to close finally the checking account in said banks. 4. The procedure of sub-allotting the Bureau's allotments to the regional offices without an established accounting unit shall be in accordance with Budget Memorandum Circular No. 147 dated May 22, 1974. 5. In lieu of the previous practice of giving cash advances to Special Disbursing Officers by means of treasury warrants or by checks, the Central Office thru the Budget Division shall issue Advices of Cash Disbursement Ceiling as provided for by Treasury Memorandum Circular No. 7-73 dated June 14, 1973. The Advices of Cash Disbursement Ceiling shall be prepared by the Chief of the Budget Division pursuant to Budget Circular No. 235 dated June 22, 1973. 6. Budget Memorandum Circular No. 135 dated June 27, 1973 and Budget Memorandum Circular No. 135-A dated May 20, 1975 prescribed a new coding structure for all disbursements of the National Government in order to facilitate mechanical processing, economic classification of expenditures and determination of disbursements for infrastructures projects, and for purposes of monitoring actual cash disbursements for fiscal analysis and policy formulation of the Development Budget Coordinating Committee, the Budget Commission; and Bureau of Treasury. These new expense codes shall be utilized in coding the TCAA checks. In this connection, all those concerned with the processing of expense vouchers and the preparation of TCAA checks must familiarize themselves with the coding structure. 7. For your further guidance and compliance, refer to Treasury Memorandum Circular No. 3-74 dated May 1, 1974 and Treasury Memorandum Circular No. 16-75 dated December 10, 1975 which provide for the revised instructions for accomplishing the TCAA checks and the daily Report of Checks Issued and Cancelled, and the submission of copies thereof to the Bureau of the Treasury. 8. With respect to the loss of any of the TCAA checks, Treasury Memorandum Circular No. 8-75 dated June 6, 1975 prescribes the procedure and format for the execution of an affidavit about the lost TCAA check. 9. The deputized disbursing officers shall make a monthly recording and reporting of TCAA checks issued. For the preparation of the Report of Checks Issued by Deputized Disbursing Officers, please refer to Budget Circular No. 235 dated June 22, 1973. The use of TCAA checks in paying expense vouchers in the regional offices shall be effective January 1, 1977. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3