Question & AnswerQ&A (DOF Department Circular No. 001-2015)
The Circular covers all National Government Agencies (NGAs), Government-Owned or -Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), Government Instrumentalities with Corporate Powers (GICPs), Government Corporate Entities (GCEs), and Local Government Units (LGUs).
An Authorized Government Depository Bank is a bank where government agencies are allowed by law to deposit government funds and maintain depository accounts, or by exception, a bank designated by the DOF and Monetary Board to hold government deposits subject to prescribed rules and regulations.
The TSA system is a cash management framework implemented by the DOF and Bureau of the Treasury for better transparency in public financial management. All NGAs must adopt the TSA system for collection and remittance of fees, charges, and revenues to the National Treasury.
They must deposit and maintain accounts with GFIs that have a universal bank license and a CAMELS rating of at least '3'. These GFIs must be authorized under Section 5.2 of the Circular, especially if the entity is allowed to retain income or maintain working balances by law.
Yes, they may engage banks other than those under Section 5.2 through a transaction fee-based arrangement without prior DOF, BTr, or BLGF approval, provided the bank only serves as a collection bank and all collections are transferred to authorized GFIs by the next banking day.
Only under exceptional circumstances such as when authorized GFIs cannot provide necessary banking services, no accessible GFIs are within a 20-km radius, or for security reasons supported by certification from the Philippine National Police Provincial Office.
They must submit a letter from the head of the agency; GOCCs must submit board resolutions, audited financial statements, cash schedules, and collection summaries; LGUs must provide bank certifications about officials' interests, Sanggunian resolutions, and seals of good housekeeping; PNP security certification if applicable; proposed bank's CAMELS rating; vicinity map; notarized waiver for BTr oversight; and other info required by DOF/BTr/BLGF.
The DOF may recommend to the Bangko Sentral ng Pilipinas (BSP) to cancel the bank's authority to accept government deposits or disqualify it from acting as a government depository for up to one year, without prejudice to other BSP sanctions.
They are responsible for compliance and may face criminal and/or administrative liabilities according to existing laws, rules, and regulations.