DBM issues updated guidelines on the payment of creditors/payees thru LDDAP-ADA, MDS Checks

The Department of Budget and Management (DBM) issued Circular Letter No. 2018-14 to provide updated guidelines on the use of List of Due and Demandable Accounts Payable – Authority to Debit Account (LDDAP-ADA) and MDS Checks to pay the creditors/payees of the government.

The Circular aims to update existing policies on the use of LDDAP-ADA and MDS Checks which were previously prescribed through Circular Letter Nos. 2013-16, 16A, 16B.

Among others, the following are new policies being prescribed in the updated guidelines:

✅ All utility companies and government corporations such as PHIC and Pag-IBIG, except GSIS, are now required to be paid thru LDDAP-ADA. In previous years, agencies were allowed to use MDS checks to pay their obligations to these offices;

✅ Companies which are not authorized per their existing internal policy to open accounts with the Bank of the agency, as determined by the Head of Office or his/her representative, may be paid thru MDS Check; and

✅ Payment for payroll and professional services of Job order and contract of service personnel are now exempted from the 48-hour crediting of the LDDAP-ADA. The same is true to cash advances.

[Download printable copy of the Circular]

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