QuestionsQuestions (DBM JOINT CIRCULAR NO. 1-90)
It prescribes guidelines for implementing the MDS to facilitate effective management of National Government cash resources and to enable reconciliation between agency disbursements and the Bureau of the Treasury (BTR) accounts with Government Servicing Banks (GSBs).
They must withdraw the balances immediately from their servicing banks and deposit them to the account of the Treasurer of the Philippines (TOP) either through authorized government depository banks or directly to the Cash Division, BTR, supported by a remittance advice, subject to stated exemptions.
Deposits authorized by law creating trust receipts or revolving funds to be deposited with a government depository bank, and deposit accounts of GOCCs and LGUs.
Once all outstanding checks are negotiated and the bank balance is reconciled with the agency books, or six (6) months after MDS implementation—whichever comes first.
The BTR opens MDS deposit accounts at the Head Office of each GSB, deposits funds needed for bank operations, designs the MDS check, authorizes GSB Heads to charge negotiated MDS checks against the MDS account, and replenishes the MDS account daily based on negotiated checks.
Through a specially designed commercial check (MDS check) drawn by government agencies against the MDS account maintained by the BTR with the GSBs, using separate series of checks per fund code.
Agencies shall no longer use Treasury Warrants Type A and B, except DECS with prior arrangement to continue using Type A warrants for certain DECS salaries up to June 1990.
They must inventory unused blank commercial checks (under NDS)/Treasury Warrants A and B (except those with special arrangement) and dispose of them according to COA/MOF/MOB Joint Circular No. 7-81 (Aug. 31, 1981) and Treasury Memorandum Circular No. 8-73 (June 27, 1973).
They issue funding checks (MDS checks) covering two (2) weeks requirements for the POs/OUs, deposited with a GSB; separate checks are issued for each allotment class.
Agencies using continuous form checks for salaries may draw an MDS check corresponding to bi-monthly/monthly salary requirements and deposit it to a separate checking account with a GSB; accounting follows COA-approved procedures.
They are withdrawn at year-end and remitted to the BTR in accordance with the remittance requirement referenced in paragraph 2.1.
They must submit to DBM within ten (10) days a Statement of Monthly Allocation and Utilization (Annex A) and submit a copy of the Bank Reconciliation Statement within fifteen (15) days after the end of the month.
Agencies must submit bank reconciliation statements on or before the 15th day of the following month, furnished to the COA Resident Auditor copy along with copies to the GSB, BTR, and DBM-AFB concerned.
Disbursement shall never exceed the NCA. Any officer who allowed withdrawals in excess of the NCA is personally liable pursuant to Section 47 of PD 1177.
GSBs maintain MDS accounts/sub-accounts, issue blank checks based on a signed PO, honor only MDS checks listed in the ACIC, dishonor checks that exceed available sub-account balances, submit monthly statements of account within five (5) days for reconciliation, and furnish BTR daily MDS account statements with supporting reports and adjustments.
ACIC (Advice of Checks Issued and Cancelled) must be prepared daily in five copies (original/duplicate to GSB, triplicate to COA Auditor, quadruplicate to Chief Accountant, quintuplicate to agency file), certified/approved as specified, and submitted promptly to enable payees to encash/negotiate issued checks.