Circular Letter No. 2026-14

~VOGET 4N ~° ~3~ ~JOGE l 4'r0 OE w~ OFFICIAL ~o Y~ RELEASE 1 9 3 6 Cet REPUBLIC OF THE PHILIPPINES ~+r DEPARTMENT OF BUDGET AND MANAGEMENT GENERAL SOLANO STREET, SAN MIGUEL, MANILA CIRCULAR LETTER No. 2026 -14 October 26 , 2026 TO . Heads of Departments/Agencies/State Universities and Colleges and Other Offices of the National Government, Budget Officers; Heads of Accounting Units; Heads of Authorized Government Servicing Banks (AGSBs); and All Others Concerned SUBJECT : MODIFICATION OF THE PERIOD FOR THE ENCASHMENT OF MODIFIED DISBURSEMENT SYSTEM (MDS) CHECKS AND PAYMENT THROUGH ADVICE TO DEBIT ACCOUNT (ADA) FOR THE REST OF FISCAL YEAR (FY) 2026 1.0 In order to facilitate the settlement of valid government payables within the current year and avoid spill-over pressure of outstanding payables to the incoming year's cash disbursement program, the immediate payment to government creditors/payees through ADA or encashment of MDS checks shall be made. Hence, this Circular is issued to prescribe the disbursement procedures to be observed for the rest of the current year, FY 2026. 2.0 In the disbursement of government funds, the following procedures are prescribed under pertinent existing Circular Letters (CLs): 2.1 MDS Checks' 2.1.1 MDS checks issued by agencies/operating units (OUs) shall be covered by Advice of Checks Issued and Cancelled (ACIC); 2.1.2 Agencies shall release MDS checks to the creditors/payees the day after the covering ACIC has been submitted to the AGSBs concerned; 2.1.3 MDS checks shall be presented by creditors/payees to the AGSBs not earlier than 24 hours after the date of issue; and 4 1 Department of Budget and Management (DBM) Circular Letter (CL) No. 91-3 dated March 14, 1991: Encashment of Checks under the Modified Disbursement System (MDS)