Republic of the Philippines
DEPARTMENT OF SCIENCE AND TECHNOLOGY
OCT 10 2011
MEMORANDUM
FOR: All Heads of DOST CO, Councils, Institutes and
Attached Agencies including Regional Offices
post.osec
FROM. MARIO G. MONTEJO Cw TF
Secretary OSecht70142
‘cafe of Scasce ad Fetrlogy
SUBJECT: DBM Circular Letter No. 2011-7: Validity of Notice of Cash
Allocation (NCA) for Regular MDS Accounts.
DATE: October 4, 2011
Attached for your information is DBM Circular Letter No, 2011-7 dated
September 28, 2011 relative to the validity of Notice of Cash Allocation (NCA)
for Regular MDS Accounts.
Please be informed that effective October 1, 2011, the quarterly validity of NCAs
under Regular MDS Accounts shall be adopted instead of the current month-end
validity.
For strict compliance
Head Office: Bicutan, Taguig, Metro Manila
Tel, Nos. 837-29-39 (DL) 837-20-71 to 82 (TL}
Fax No. $37-29-37
Postal Address: P.O. Box 3596 Manila
Cable Address: Science Manila
Telex. No. (75) 66819REPUBLIC OF THE PHILIPPINES
Department of Budget and Management
Malacaffang, Marita
No._ 2011-7
September 28 , 2011
Heads of Departments/Agencies/State Universities and Colleges and
Other Offices of the National Government; Budget Officers; Heads of
Accounting Units; Heads of Modified Disbursement System —
Government Servicing Banks (MDS-GSB), and All Others Concerned
SUBJECT : Validity of Notice of Cash Allocation (NCA) for Regular MDS Accounts
1.0
2.0
3.0
In order to further enhance the effectiveness of fund release policies, the Department
of Budget and Management (DBM) conducted an assessment of the policy on the
monthly validity of NCAs under Regular MDS Accounts of Operating Units (OUs) as.
enunciated in CL No. 2008-21.
On the basis of the results of the said assessment and to optimize the use of available
resources, effective October 01, 2011, the quarterly validity of NCAs under
Regular MDS Accounts shail be adopted instead of the current month-end validity.
2.1 For the Fourth Quarter of FY 2011, all NCAs under Regular MDS Accounts,
comprehensively released prior to October 01 but to be credited within the
fourth quarter of FY 2011 as well as additional NCA releases starting October
01, 2011 shall be valid until December 31, 2011.
2.2 Starting January 01, 2012, all NCAs under Regular MDS Accounts credited’ for
the month whether part of the comprehensive releases or constituting
additional NCA releases, shall be valid until the last working day of the
3% month of that quarter. Example: NCAs released/effective in February
and March shall lapse on March 31.
2.3 Thus, the MDS-GSB shall automatically credit any unutilized NCA corresponding
to the book balance at the end of the month to the immediately succeeding
month within the same quarter.
Disbursement of the OUs covered with Advice of Checks Issued and Cancelled (ACIC)
received by the MDS-GSB from the first working day until the last working day of the
Month shall be charged against the total available NCAs i.e., programmed/credited
NCA for the month plus any valid unutilized NCAs from the past month/s of the same
quarter.
3.1 OUs should ensure that their ACICs are promptly submitted to the MDS-GSBs
within the prescribed cut-off period in order to fully maximize the available
NCAs for the month.4.0
5.0
3.2 Outstanding checks of the Us as of the end of the month shall still be charged
against the month when these were issued. In the event that ‘outstanding
checks are cancelled, the replacement MDS checks shall be charged against.the
avallable NCA for the month when the replacement check and covering ACIC
are issued,
It is understood that all NCAs are considered lapsed after the last working hour of
December 31 of every year.
This Circular shail take effect on October 1, 2011.
FLORENCIO B. ABAD
Secretary