Overview/Background

Presently, the National Government uses two (2) schemes for payment of Accounts Payables: 1) the Common Fund Scheme where payment is made through issuance of MDS checks, and 2) the Direct Payment Scheme (DPS) via bank debit system, through issuance of Advice to Debit Account (ADA).

The second scheme has two variants: 1) the DPS whereby direct payment to the creditors’ accounts is effected by MDS-GSB, upon receipt from the agency of the ADA based on the Advice of Notice of Cash Allocation Issued (ANCAI) from DBM; and 2) the Modified Disbursement Payment System (MDPS) whereby direct payment to the creditors’ account is effected by the MDS-GSB, upon receipt from the DBM of the agency’s ADA integrated in the List of Due and Demandable (LDDAP).

The MDPS has contributed to the substantial reduction of agencies’ due and demandable A/Ps and has minimized the volume of outstanding checks. In addition, said scheme has addressed cash programming concerns relative to resource predictability requirements by providing specific schedule of payments.

Legal Bases:

• Circular Letter No. 2013-16: Implementation of the Expanded Modified Direct Payment Scheme (ExMDPS) for Accounts Payable Due Creditors/Payees of All National Government Agencies (NGAs)
• COA Circular No. 2012-001: Prescribing the Revised Guidelines and Documentary Requirements for Common Government Transactions

Reports:

• 2019 Repair and Preventive Maintenance of PPE Reports