2. DEPARTMENT OF EDUCATION 2
1
Deposit, Withdrawal,
and Expense
Restrictions
2
Replenishment
of Cash Advance
3
Automatic Transfer of
Balances to the Bureau
of Treasury (BTr)
4
Recording in the Books
of Accounts
5
Processing of School
Head’s Clearance
6
Quarterly Reporting of
Bank Accounts Opened
3. DEPARTMENT OF EDUCATION
Deposit, Withdrawal, and Expense
Restrictions
3
1
LDDAP-ADA thru
GSBs
xxxx-xxxx-xx
January 12, 2020
MDS Checks
xxxx-xxxx-xx
January 12, 2020
MDS Checks
CO
RO
SDO
School
or
P 500
1
2
Interest
Income
6. DEPARTMENT OF EDUCATION
Replenishment of Cash Advance
(CA)
6
2
Cash Disbursement Register
(CDR)
• One for School
MOOE
• One for each
Program Fund
School
Head
7. DEPARTMENT OF EDUCATION 7
2
CDRs shall be:
1
Circular 97-002
dated February
10, 1997
5
Circular 2011-
002 dated July
22, 2011
2
Circular 2003-
006 dated
December 2,
2003
3
Circular 2004-
003 dated June
24, 2004
4
Circular
2006-005
dated July
13, 2006
• Supported with transaction and bank documents, such as a copy of the bank
statement or the passbook, in accordance with the “Manual on Simplified
Accounting Procedures for Non-Implementing Units” (DepEd Order No. 72,
s. 2008)
• Submitted consistent with the frequency and timeliness of the submission of
reports, following the applicable COA rules and regulations:
• Submitted as one of the bases for the release of the next cash advance:
o If CDR ≥ 75% of CA Succeeding CA may be allowed
o If CDR < 75% of CA Only to reduce the outstanding CA
Replenishment of Cash Advance
(CA)
8. DEPARTMENT OF EDUCATION 8
2
Bases for the
release of the next
cash advance:
CDR/
Liquidation
Replenishment of Cash Advance
(CA)
SDO
Accounting
Unit
First week
of the
month or
quarter
School
School
Head
Monthly
Disbursement
Program
Availability
of cash
allocation
xxxx-xxxx-xx
January 12, 2020
Checks
MOOE
9. DEPARTMENT OF EDUCATION 9
2
Monthly bank
reconciliation
statement
Replenishment of Cash Advance
(CA)
Clustered
Schools
Bookkeeper
School
Head
or
Accounting
Unit
SDO
If there is no
Clustered
Schools
Bookkeeper
For validation
and review
10. DEPARTMENT OF EDUCATION
Automatic Transfer of Balances
to the BTr
10
3
Particulars
Timelines for
Depositing to BTr
Submission of
Authority to
Debit/Credit Account
Interest Income For GSB accounts:
Quarterly – On the first
banking day following
the previous quarter
For Non-GSB accounts:
Annually – On the first
banking day of the
succeeding year
Upon account opening
Unexpended Cash
Advance (Net of main-
taining balance, funding
for outstanding checks
issued, and net interest
income, if any) as of
December 31 of every
year
For GSB and Non-GSB
accounts:
Annually – On the first
banking day of the
succeeding year
On or before December
20 of the current year
13. DEPARTMENT OF EDUCATION
Automatic Transfer of Balances
to the BTr
13
3
Ensure that the correct amount to be
transferred to the BTr is indicated in
the Authority to Debit/Credit:
Maintain an updated and complete
record of checks issued
Coordinate with the bank and obtain a
bank statement to determine
outstanding checks as of December 20
Account balance
Total Outstanding Checks
P 500 maintaining balance
Amount for transfer to BTr
Non-submission of the Authority to Debit or Credit Account shall subject the
account to automatic sweeping, net of maintaining balance. The School Head is
expected to practice utmost diligence in preparing and submitting the Authority to
Debit or Credit Account to the bank on or before the 20th of December to avoid
bounced checks, for which service charges will be imposed by the bank.
14. DEPARTMENT OF EDUCATION
Recording in the Books of Accounts
14
4
Particulars Debit Credit
Release of Cash
Advance thru the
School Bank Account
Advances for Operating Expenses –
PhP xxx
Cash – MDS – PhP xxx
Liquidation of Cash
Advance
Expenses – PhP xxx
Advances for Operating Expenses –
PhP xxx
End of the Year Cash
Balance (excluding
Maintaining Balance,
Outstanding Checks
and Interest Income)
Cash – Treasury Agency Deposit
– PhP xxx
Advances for Operating Expenses –
PhP xxx
Recording of Interest
Income and
Remittance to BTr
Cash – Treasury Agency Deposit
– PhP xxx
Interest Income/Misc. Income –
PhP xxx
Maintaining Balance To be fully disclosed in the Notes to Financial Statements
16. DEPARTMENT OF EDUCATION
Processing of School Head’s
Clearance
16
5
School
Head
CDR
With supporting docs
Bank
Statement
Checkbook
Complete?
Correct?
SDO
Accounting
Unit
22. DEPARTMENT OF EDUCATION
Quarterly Reporting
of Bank Accounts Opened
22
6
Office
1st, 2nd, 3rd Quarters 4th Quarter
Annex Deadline Annex Deadline
SDO
RO
Annex J-1
10th day of
following
month
Annex J-2
January 15
of the
following
year
RO
CO
Annex K-1
15th day of
following
month
Annex K-2
January 25
of the
following
year
For the Management of Cash Advances and Reporting Requirements, the guidelines may be categorized into six:
[Read 6 items]
Only funds from the DepEd Central Office, Regional Office or RO, and Schools Division Office or SDO, shall be deposited by the SDO to the school’s bank account through either of the following:
- The Modified Direct Payment Scheme, or the MDPS, using the List of Due and Demandable Accounts Payable-Advice to Debit Accounts, or the LDDAP-ADA, or
- Checks under the Modified Disbursement Scheme, or MDS, in case the MDPS is not applicable or practicable.
On the other hand, the School Head may withdraw only the amounts deposited, excluding the required maintaining balance of five hundred pesos.
In no case may the School Head withdraw amounts that will make the account balance lower than five hundred pesos.
Bank charges and fees resulting from the account falling below this amount shall be paid by the School Head from his or her personal account.
Interest income earned by the account, if any, also cannot be withdrawn. These shall be transferred by the bank to the BTr quarterly, as required in the COA-DBM-DepEd joint circular.
What are the uses of School MOOE?
[Either read/discuss slide, or just mention that these are all in DepEd Order No. 8, s. 2019, which they should read.]
MOOE should NOT be used for the procurement of:
[Either read/discuss slide, or just mention that these are all in DepEd Order No. 8, s. 2019, which they should read.]
The School Head shall maintain Cash Disbursements Registers, or CDRs. One CDR should be maintained for the School MOOE, and one for each Program Fund.
[Read/Discuss slide]
There are 3 bases for the release of the next cash advance. The first two, CDR or Liquidation and Availability of Cash Allocation, are conditions which should be met, while the third, the monthly disbursement program or the MDP, will determine how much cash advance will be released to the school.
When a school becomes eligible for the next cash advance, the SDO Accounting Unit will process and release the MOOE within the first week of the month or quarter.
The monthly bank reconciliation statement shall be prepared by either the clustered schools bookkeeper or the School Head, if the former is absent. It shall be submitted to the Accounting Unit of the SDO for validation and review.
As required in the COA-DBM-DepEd Joint Circular Number 2019-1, only the maintaining balance should remain in bank accounts of non-implementing unit schools or non-IUs by the end of the year. Hence, the guidelines instituted a system for automatic transfer of balances to the BTr.
Every first banking day after each quarter, the government servicing bank will automatically transfer to the BTr’s account the net interest income earned for the quarter.
If the bank is not a government servicing bank, the automatic transfer will be done every first banking day of the following year.
For this reason, the School Head is required to submit a signed Authority to Debit or Credit Account, or Annex G, during account opening. The “Automatic transfer of Quarterly Net Interest Income” under item number 2 should be checked.
Every first banking day of the following year, the bank will automatically transfer to the BTr’s account the balance, net of maintaining and funding for outstanding checks, as of December 31 of the year.
For this reason, the School Head is required to submit the signed Authority to Debit or Credit Account on or before December 20 of the current year, indicating therein the amount to be transferred to the BTr.
The following are key actions to ensure that the correct amount is indicated in the form:
- Maintain an updated and complete record of checks issued, and
- Coordinate with the bank and obtain a bank statement to determine which among the checks issued have not yet been negotiated as of December 20. Also known as “outstanding checks.”
When the necessary information is obtained, follow this formula: [read the formula in the slide]
Non-submission of the Authority to Debit or Credit Account shall subject the account to automatic sweeping, net of maintaining balance. The School Head is expected to practice utmost diligence in preparing and submitting the Authority to Debit or Credit Account to the bank on or before the 20th of December to avoid bounced checks, for which service charges will be imposed by the bank.
The Accounting Unit of the SDO shall Record in the SDO books of accounts the transactions on MOOE releases to schools, including the amounts deposited to the BTr. The transactions shall have the following journal entries: [You may read/discuss the slide.]
In case of reassignment or separation from the service of a School Head due to retirement, resignation, or suspension, the cash advance released to him/her must be liquidated and accounted for, and the accountability for the funds and the unused checks should be transferred from the outgoing School Head to the incoming School Head, before a clearance may be issued.
The following are the steps for the processing of the School Head’s Clearance:
First, the School Head shall complete the following set of documents to liquidate and account for the unexpended cash:
- The CDR, including all supporting documents, to account for the expended cash advance,
- The bank statement, to account for the unexpended cash advance, and
- The checkbook containing the unused checks.
Once completed, the School Head shall submit these to the Accounting Unit of the SDO for audit and approval.
The Accounting Unit shall check the completeness and appropriateness of the documents submitted by the School Head.
Next, it shall prepare and facilitate the signing of the Authority to Transfer Accountability for School Funds or Annex C, and the Indorsement Letter for the Incoming School Head or Annex I, by the Schools Division Superintendent or the SDS. The Accounting Unit shall likewise obtain the signatures of both the incoming and outgoing school heads.
[You may zoom in slowly from top to bottom.]
[You may zoom in slowly from top to bottom.]
Then, the School Head shall facilitate the transmission of documents to and from the bank for the updating of the authorized signatory for the school’s bank account in coordination with the Cash Unit of the SDO.
Upon receipt of Annex I filled out by the bank, the Accounting Unit shall then sign the clearance of the outgoing School Head.
For the first, second, and third quarters of the year, the Accounting Unit shall prepare and submit the “Summary of Bank Accounts Opened,” following the template in Annex J-1, certified correct by the SDS, to the Finance Division in the RO, on or before the tenth day of the month following the end of every quarter, until all non-IUs that are required to open an bank account have done so.
The current report should reflect all bank accounts opened “as of” the end of that quarter.
The Finance Division in the RO, through its Accounting Unit, shall consolidate these submissions into one file, following the template in Annex K-1, have it certified by the Regional Director, and submit the report to the DepEd Central Office Accounting Division and the BTr Regional Office, on or before the 15th day of every month following the end of the quarter.
For the fourth quarter, the Accounting Unit of the SDO shall prepare and submit the “Summary of Bank Account Opened,” following the template in Annex J-2. The annex is almost the same as Annex J-1, except for the additional column, “Account Balance as of December 31”. This shall be submitted on or before January 15 of the following year.
Accordingly, the Accounting Unit under the Finance Division in the RO shall consolidate these submissions into one file, following the template in Annex K-2, have it certified by the Regional Director, and submit the report to the DepEd Central Office Accounting Division and the BTr Regional Office, on or before January 25 of the following year.
[You may read the columns in this template.]
[You may read the columns in this template.]
[You may read the columns in this template, and also mention that it is almost the same as Annex J-1. The only difference is that there is an additional column: “Initial Amount Deposited by the SDO”.]
[You may read the columns in this template, and also mention that it is almost the same as Annex J-2. The only difference is that there is an additional column: “Initial Amount Deposited by the SDO”.]
