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) 66819REPUBLIC 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