Q&A: Is it correct to use LDDAP-ADA to pay Cash Advances?

The correct answer is NO.

As the name implies, a List of Due and Demandable Accounts Payable or LLDAP is a list containing Accounts Payable (A/Ps) that are already due for payment. An Accounts Payable is said to be due and demandable when goods purchased have already been delivered or services have already been rendered. These A/Ps are certified by the Accountant and approved by the Head of the Agency or his/her authorized representative as due and demandable, meaning, due for payment.

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On the other hand, the ADA or Authority to Debit Account is a form (attached to the LDDAP, or usually they are in one form) given by the Agency to the Bank concerned authorizing the same to pay the creditors listed in the LLDAP through direct transfer to the creditor’s account.

Hence, it is not correct to use LDDAP-ADA to pay or release cash to cover Cash Advances as the same are not Accounts Payable but rather Accounts Receivable subject to liquidation by the employee concerned.

The appropriate form that should be used to pay Cash Advances is LAD-ADA or List of Advances/Deposits – Authority to Debit Account as stated in Section 4.1 of DBM Circular Letter No. 2013-16B, as shown below:

However, it is stated in the said Circular that the use of the LAD-ADA is prescribed by DBM in a separate issuance. As of date, as far as we know, the DBM has not issued the said Circular since 2013.

Thus, not until the LAD-ADA is prescribed, the most appropriate mode of payment for Cash Advances is through MDS-Checks as prescribed under existing rules and regulations.