Disbursement
regulations
➢ Constitute all payments in cash
➢ Shall be supported by Disbursement Vouchers(Petty
Cash Vouchers) or payroll
Fundamental Principles
1. All government resources shall be used only in
accordance with law and only for public purpose
2. Trust Fund shall be used for specific purpose
3. Fiscal responsibility shall be strictly shared by all
those exercising authority over a government
agency
4. These of government resources shall be approved
by proper officials
5. Claims against government funds shall be
supported with complete documentation
6. All laws and regulations applicable to financial
transactions shall be faithfully adhered to,
including generally accepted principles and
practices of accounting, management and fiscal
administration, provided they do not contravene
existing laws and regulations
Note:
1. Expenditures funded by borrowings are included
in the expenditure program of the entity.
2. The loan proceeds shall not be used without
corresponding release of funds through a Special
Budget.
Authority to Disburse/Pay
1. NCA
2. NTA
3. TRA
4. NCAA
5. CDC
○ Authority issued by the DBM to agencies
with foreign operations
Basic Requirements and Certifications for Disbursements
1. The Budget Officer(or Head of Budget Unit) shall
certify the availability of allotments
2. The Chief Accountant(or Head of Accounting Unit)
a. shall charge obligations against available
allotments to ensure that there is no
overdraft incurred.
b. Shall certify the availability of fund/cash
and the completeness of supporting
documents before the head of agency can
enter into contract. (Notes: (1)all
disbursement must be certified by the
chief accountant(2) Any certifications for
fictitious obligation is void and the
certifying official shall be dismissed from
service. Other officials involved are liable)
c. The requesting and approval officials shall
ensure that disbursements are legal and
conform to applicable rules and
d. The Head of the Requesting Officers shall
certify the necessity and legality of
disbursement. Payments shall be made
through Disbursement Vouchers and
Payroll and supported by the original copy
of supporting documents
e. The Head of Agency shall approve all DVs
and Payrolls
Mode of Disbursements
Checks
● Used when cannot be conveniently disbursed
through cash
Types:
● Modified Disbursement System Checks
○ Chargeable against the account of the
Treasury
○ Maintained in MDS-Government Servicing
Banks
● Commercial Check
○ Chargeable against Agency Checking
Account with GSBs
○ This are covered by income/receipts to be
deposited with Authorized Government
Depository Banks
Note:
1. All checks drawn , whether released or unreleased
to payees, including canceled checks are
recorded chronologically in the Checks/ADA
Disbursement Record maintained by the
Cash/Treasury Unit
Cash
● Constitute payment through cash advances,
including those out of petty cash funds
Rules of Cash Advances
1. Cash advances shall be made only for a legally
authorized specific purpose
2. Cash advances, other than travel expenses, shall
be given only to duly appointed Disbursing
Officers who must be properly bonded. The
amount of cash shall not exceed the maximum
cash accountability
3. Only designated Disbursing Officers which must
be permanently appointed officials are allowed to
perform disbursing functions
4. A cash advance must be liquidated as soon as the
purpose for which it was given has been served
(Notes: (1) Cash advances for payroll shall be
liquidated within 5 days after the end of pay
period. Unclaimed Salaries shall be refunded and
issued OR to close the account.(2) Cash
advances for travel shall be liquidated within 30
days upon return to personnel workstation(for
local travel) or within 60 days upon return to
Philippines(Foreign Travel)
5. No cash advance shall be given to any officials
unless previous cash advance has been first
liquidated
6. Transfer of cash advance from one to another is
 prohibited
7. Cash advance shall not be used to encash
cheques or liquidate a previous cash advance

Cashless Payments
➔ Advice to Debit Account(ADA)
➔ Electronic Modified Disbursement
Systems(eMDS)
➔ Cashless Purchase Card System(Credit Card)
➔ TRA