Guidelines in the Re-Order/Purchase of MDS Check

May 20, 2014 TREASURY CIRCULAR NO. 01-2014 TO : All Heads of Departments/Agencies/State Universities and Colleges and Other Offices of the National Government, NGA/OUs Disbursing Officer, Chief Accountants, Treasury Regional Directors/Provincial Heads, Head of MDS Government Servicing Banks and All Other Concerned SUBJECT : Guidelines in the Re-Order/Purchase of MDS Check 1.0 Purpose 1.1 To promote the use of Authority to Debit Account (ADA) as mode of disbursement for all National Government Agencies (NGA) in support of DBM Circular Letter Nos. 2013-16, 2013-16A, and 2013-16B dated December 23, 2013, February 6, 2014 and February 25, 2014, respectively. 1.2 To minimize the volume of outstanding checks resulting in a more predictable cash outflows in the Bureau of the Treasury. 2.0 Guidelines 2.1 All NGA Officers who will re-order MDS check from any of the Authorized Government Servicing Banks shall: 2.1.1 Get prior clearance from the nearest Office of the Bureau of the Treasury Regional Director/Provincial Head. 2.1.2 Submit to the BTr-Regional Director/Provincial Head through electronic means or manual, the following requirements for clearance to re-order MDS check: 2.1.2.1 Request for MDS check re-order (Form 1). 2.1.2.2 Latest Report of Accountability for Accountable Forms (RAAFs) for MDS Checks. 2.1.2.3 Monthly Estimates for the number of transaction/Accounts Payable that cannot be practically nor conveniently paid through ADA as enumerated under Sections 5.4.1.3, 5.4.1.5 of DBM CL 2013-16 and Sections 1.2 and 4.0 of DBM CL No. 2013-16B dated December 23, 2013 and February 25, 2014, respectively. (Form 2) 2.2 Treasury Regional Director/Provincial Head shall: 2.2.1 Assess the NGA inventory of MDS check from the latest RAAFs. 2.2.2 Consider in the volume of check re-order, the following: 2.2.2.1 Estimate number of transactions that can not be paid through ADA. 2.2.2.2 Volume and frequency of check usage. 2.2.3 Issue clearance to the NGA as to the number of check booklet that can be re-ordered. (Form 3) 2.2.4 Furnish the Branch Manager of the Agency's Servicing Bank with a copy of the clearance for the re-ordering of MDS check. This Order shall take effect immediately. (SGD.) ROSALIA V. DE LEON Treasurer of the Philippines FORM 1 Agency Letterhead Date: _____________________ The Regional Director/Provincial Head Bureau of the Treasury _______________________ _______________________ (Address) Sir/Madam: In compliance with Treasury Circular No. _____ dated May ___ 2014, we would like to place a re-order of ________ booklet(s) of MDS check for payment of accounts payable that cannot be paid through ADA. Attached are the following reports for your reference: 1. Report of Accountability for Accountable Forms (RAAFs) for MDS checks 2. Monthly Estimate of number of transaction/Accounts Payable that cannot be paid thru ADA (Form 2) Truly yours, __________________________ __________________________ Name/Signature of NGA Official Position Title FORM 2 Name of Agency _________________ Address _________________ Monthly Estimate of Transactions/Accounts Payable that cannot be paid through ADA Frequency of No. of Payment Transactions a) Remittance to GOCC like GSIS, Philhealth, etc. b) Payment to utility companies c) Transactions enumerated in Sec. 4.0 of DBM CL 2013-16B ____________________________ Name/Signature of Agency Officer FORM 3 Republic of the Philippines Department of Finance BUREAU OF THE TREASURY Intramuros, 1002 Manila Funding the Republic Mr./Ms. _______________ Position/Title ___________ Requesting NGA ________ Address _______________ Sir/Madam: This is to authorize ________________________ (Name of NGA), to place a re-order of _______ booklet(s) of MDS check for payments of accounts payable that cannot be paid through ADA. Truly yours, ___________________________________ Name/Signature of Authorized BTr Official