Brief Background

• With its mandate to implement the fiscal policies of the police organization, the PNP Finance Service
(PNPFS) had endeavored the transfer of administration of the PNP Salary System from the Information
Technology Management Service (ITMS) in CY 2014. The PNPFS developed a new salary system for the
purpose and is covered by PNP NHQ MC No. 2014-030 in which the Directorate for Personnel and
Records Management (DPRM) through its Personnel Accounting Information System (PAIS) shall be the
source of list of personnel who are qualified to receive the financial benefits. This system was enhanced
in CY 2017 and is now known as the Payroll Management System (PMS) that incorporates the Salary
Deduction and Loan Information System (SDLIS). The Salary System shall only provide the computations
based on set parameters and generate the payroll and funding warrant for the final payment of the
salaries and other benefits to be credited to the individual ATM accounts of PNP members enrolled in the
PNP ATM Payroll Account.
• With the fiscal reforms implemented by the national government on the disbursement of funds through
the Expanded Modified Direct Payment Scheme (eMDPS) limiting the use of commercial checks in the
payment of financial benefits and obligations, the PNP has shifted to the direct crediting of funds from
the PNP Account to the individual ATM account of entitled personnel for the payment of collateral
allowances such as CDP, CIP, CHP and RS.
 Basis for Pay & Allowances
• PNP MEMORANDUM CIRCULAR NO. 2014 – 030

• PNP MEMORANDUM CIRCULAR NUMBER 2014-004

• AMENDED MOA BETWEEN THE PHILIPPINE NATIONAL POLICE AND T

HE LAND BANK OF THE PHILIPPINES
“All Disbursement of Funds must be in
accordance with Accounting rules and
regulations”
Pay & Allowances Section (PAS) is responsible in the processing and preparation of reports
pertaining to the inclusion of the PNP personnel in the ATM Payroll System; stoppage and
implementation of penalties (suspension and forfeiture of pay) updating of the individual ATM
payroll account expediting the payment of salaries and allowances of active PNP personnel.
 
PAS is tasked to prepare and issue Certificate of Last Payment (CLP) for retirement claims purposes
in order to expedite and ensure the timely release of retirement benefits of retiring PNP personnel.

 This section also responsible in the preparation of Letter Request of Instruction (LRI) to Landbank
of the Philippines due to the following reasons:
 
1. Closure of ATM Payroll accounts due to attrition;
2. Rectification of ATM Payroll accounts;
3. Payment of rejected pay and allowances/bonuses due to closed, dormant and
erroneous ATM Payroll account;
4. Reactivation of ATM payroll accounts; and
5. Withholding/“Tag and Hold” ATM payroll accounts.
 Definition of terms
Active Personnel – PNP members who are on-duty status and are entitled to receive their monthly salaries. For the
purpose of generating the monthly Alpha List, personnel with suspension are included in the list of active
personnel.
 
Attrition – The reduction in the number of PNP personnel due to the following: retirement, resignation, death,
dropped from rolls, dismissal, termination of appointment, or separation from the service for cause.
 
Inactive Personnel – PNP members who are not on-duty status and thereby not entitled to receive a monthly salary.
These include those who are reported as AWOL, detained, and those enumerated in the definition of “Attrition”.

Funding Warrant – A document showing the total gross amount of salaries for the month that shall be the basis for
the issuance of Notice of Fund Allotment and Notice of Cash Allocation to support the funding and payment of
salaries for the month.

Advice to Debit Account – issued by national government agencies which serves as notice to the bank
to debit the agency’s MDS account for payments made for accounts payable and retirement gratuity/terminal
leave benefits.
 
• Journal Entry Voucher (JEV) – form use to record all transactions of the NGAs, whether cash
receipts, cash disbursement, or non-cash transactions. Accounting Journal Entries shall be
reflected therein and it shall serve as the basis for recording in the books of accounts.

• Modified Disbursement /system (MDS) – The MDS is one of the modes of payment of
transactions that covers all funds appropriated in the General Appropriations Act (GAA), Public
Works Act and other supplemental appropriations for the different departments including their
bureaus, offices, and agencies/hospitals. It covers all other funds deposited with the National
Treasury whether or not requiring special budgets, including Special Accounts maintained by
national government agencies, and those maintained by government corporations. Payment of
transactions is either through checks or by cash, through cash advance granted to Accountable
Officers.

• Notice of Cash Allocation (NCA) – authority issued by the DBM to Central, Police Regional Offices
(PROs) to cover the cash requirements of the agency/units.

• Notice of Fund Availability (NFA) – A form issued by the Directorate for Comptrollership to the
different units to inform them on the funds ready for release.
• Personnel Accounting and Information System (PAIS) – It is the PNP personnel database. It is a
primary database of the Records Management Division (RMD) of the Directorate for Personnel
and Records Management (DPRM). It keeps the electronic records of PNP personnel (active or
inactive), and is the basis for the payment of personnel claims and other transactions.

• PAIS Alpha List – The list containing the active PNP personnel entitled to receive salary for a
specific pay period, including those with suspension and/or forfeiture of pay

• PNP Salary File - A file showing pertinent data of personnel PNP-wide and salary received for the
month. The data includes the following name of PNP personnel, PNP Account Number, current
rank, longevity pay, unit code, region/unit/office, mode of payment (ATM), gross earnings, gross
deductions, and net-take-home-pay.
 
• Salary Forfeiture (SLR Forfeiture) - Personnel with forfeiture of pay, penalty, suspension or non-
entitlement to receive the salaries and allowances.
 A. Generation of Gross Earnings

START
(NLT: 20TH OF THE MONTH)

E-TRANSFER OF LEGEND:
DATA
PAIS PERSONNEL
(START: 21ST OF THE MONTH NLT: 22ND OF THE MONTH) PAIS - Personnel Accounting
Information System
FS - Finance Service
UPLOAD PAIS DATA ROC - Report of Changes
TO FS SERVER RCD - Revenue & Collection
Division
DCS - Data Control Section
WTAX - Withholding Tax Section
(START: CROSS-MATCH
21ST OF THE MONTH CURRENT & PREVIOUS FS EXCEPTION REPORT SAS - Salary Assignment Section
NLT: 25TH OF THE MONTH) DATA PAS - Pay & Allowances Section
NTHP – Net-Take-Home-Pay
NLT – Not Later Than
PROCESSING FORWARD TO
GROSS EARNINGS DATA PAIS, DPRM

A
B. Generation of Gross Deductions START

CONSOLIDATIO CONSOLIDATIO COMPUTATION UPLOADING OF UPLOADING OF ENCODING/ UPDATE

N OF BILLING N OF BILLING OF ACTIVE PERS W/ SALARY OF
(IN SOFT COPIES) (SDLIS) WITHHOLDING SALARY FORFEITURES OVERPAYMENT SALARY ASSIGNEES
(RCD) (RCD) TAX (WTAX) (FIMD) (PAS) (SAS)

UPLOADING OF DATA TO DATABASE SERVER

PROCESSING OF GROSS DEDUCTIONS DATA

B
A. Generation of Gross Earnings
A (START: 24 OF THE
TH
MONTH
NLT: 25TH OF THE MONTH)
B. Generation of Gross Deductions C. Updating of ATM Account
(START: 24TH OF THE
(START: 18TH OF THE
B C
MONTH MONTH
NLT: 25TH OF THE MONTH) NLT: 20TH OF THE MONTH)

GENERATED GROSS GENERATED GROSS INCLUSION / RECTIFICATION

EARNINGS FILE DEDUCTIONS FILE OF ATM ACCOUNTS
(START: 24TH OF THE
MONTH
NLT: 25TH OF THE MONTH) (START: 21ST OF THE MONTH
COMPUTE NLT: 24th OF THE MONTH)
NHTP + SA = G.E. – G.D.
G.E. = Gross Earnings
G.D. = Gross Deductions

NO IS THE DATA
DATA VALIDATION
CONCERNED OFFICES
IMPLEMENTED?
SAS, PAS, RCD, WTAX
FIMD

YES

(START: 1ST OF THE MONTH GENERATE

NLT: 3RD OF THE MONTH) SALARY FILE

(START: 3RD OF THE MONTH VERIFY/ VALIDATE FUNDING WARRANT

NLT: 5TH OF THE MONTH) FUNDING WARRANT VALIDATION
DC, ACCOUNTING

D
 FIMD 1. Breakdown of ATM Payroll Accounts

FS (PAS)
2. Preparation and Processing of Voucher
Mgmt Div, DC
3. Pre-Audit of Voucher

Budget Div, DC
4. Issuance of NCA

Acctg Div, DC 5. Journalization

FS (CAS) 6. Issuance of Check/Indexing/LDDAP ADA

DC 7. Signature of Check/LDDAP-ADA

FS (D, FS) 8. Counter-Signature of Check/LDDAP-ADA

LBP
9. Deposit of Check
FS (PAS) 10. Signature of Authority to Debit/Credit
11. Approved Authority to Debit/Credit with copy of registry of PNP Pers w/
LBP
ATM Payroll Accounts (in hard and soft copy)
12. Availability of Fund : 1-15 every 13 th of the month
CLAIMANT
16-30 every 28th of the month