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Circular Letter No. 2026-14
Circular Letter No. 2026-14 · 2026 · 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)
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2.1.4 Creditors/suppliers who cannot be conveniently nor practicably be
paid using the ADA as determined by the Agency Head, may
continue to be paid through issuance of MDS checks or cash.2
These accounts G:nclude:
2.1.4.1 Small value creditors/payees with claims during the year
costing P10,000 and below, e.g., government scholars,
recipients of DOLE'S Special Program for the
Employment of Students (SPES);
2.1.4.2 Creditor/payee of the agency with non-regular
transaction or one-time transaction during the year,
e.g., Right-of-Way claimants, relocation expenses for
informal settlers and others; and
2.1.4.3 Companies which are not authorized, per their internal
policy, to open current accounts in addition to their
existing accounts.
2.2 ADA
2.2.1 List of Due and Demandable Accounts Payable (LDDAP)-ADAs
submitted by agencies/OUs to the AGSB shall be covered by a
Summary of LDDAP-ADAs Issued and Invalidated ADA Entries
(SLIIE), the document equivalent to ACIC;3 and
2.2.2 AGSBs shall effect direct payment by crediting the
creditors/payees' bank account, not earlier than 24 hours but
not later than 48 hours after receipt of the LDDAP-ADA,4
chargeable against the agency's MDS sub-account.
In the case of far-flung location of certain AGSB branches
specifically identified by the AGSB Head Office (where electronic
transmission/fax/wire/cable cannot be used), the reckoning time
for the crediting will be the actual receipt by the said specific AGSB
branch, of the copy of the LDDAP-ADA sent via pouch, from either
its AGSB Head Office for DBM Central Office releases or for the
AGSB Regional Office branch for DBM Regional Office releases.5
2 Item 3.4 of DBM CL No. 2018-14 dated December 28, 2018: Updated Guidelines in the Implementation of the
Modified Direct Payment Scheme (MDPS) Due Creditors/Payees of All National Government Agencies (NGAs)
3 Item 3.3 of DBM CL No. 2018-14
4 Item 7.3.2 of DBM CL No. 2013-16 dated December 23, 2013: Implementation of the Expanded Modified Direct
Payment Scheme (ExMDPS) for Accounts Payable Due Creditors/Payees of all National Government Agencies (NGAs)
5 Item 7.3.3 of DBM CL No. 2013-16
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