What is a Disbursement Authority?

A disbursement authority is a document issued to an agency authorizing the liquidation/payment of obligations incurred.

There are several types of disbursement authority issued by the Department of Budget and Management (DBM) to government agencies. These documents include the following:

1. Cash Disbursement Ceiling (CDC). An authority issued by the DBM to departments with overseas operations e.g., Department of Foreign Affairs (DFA) and Department of Labor and Employment (DOLE) to utilize their income collected/retained by their foreign service posts (FSPs) to cover their operating requirements but not to exceed the allotment released to the said post.

2. Notice of Cash Allocation (NCA). The NCA is the most common type of disbursement authority. It is a cash authority issued by the DBM to central, regional and provincial offices and operating units through the authorized MDS-GSBs such as the Landbank of the Philippines, Development Bank of the Philippines, and Philippine Veterans Bank, to cover the cash requirements of the agencies.

3. Non-Cash Availment Authority (NCAA). Authority granted by DBM to government agencies to account for the cash equivalent loan proceeds availed of through supplier’s credit/constructive cash.

4. Tax Remittance Advice (TRA). Document which agencies issue/file with the Bureau of Internal Revenue (BIR) to report and record remittances (constructive payment) of all taxes withheld from transactions. This serves as basis for BIR and BTr to record as income, the tax collection and deposit in their books of accounts.

Source: Glossary of Terms, Department of Budget and Management