To:   Regional Directors
All Others Concerned

1.   Under the DBM Modified Disbursement System (MDS) guidelines, Notices of Cash Allocation (NCA) are issued on the 15th and corresponding MDS checks are drawn on the 20th  of each month. Teachers’ salary checks are prepared in advance in advance and sent to division superintendents for distribution.

2.   Apparently, some regional offices do not immediately deposit the required MDS checks corresponding to NCAs received for continuous form checks such that teacher’s encash their salary checks and create an overdraft in the agency account. If the deposit could not be made for any reason, superintendents should have been directed not to release the continuous form salary checks to teachers.

3.   Two DECS servicing banks have complained of such overdraft and given warning that in the future, penalties and surcharges shall either be imposed or the checks shall be dishonored.

4.   In view thereof, all penalties and surcharges arising from such overdraft shall be considered personal liability of the regional director, regional accountant, and cashier. Any instance of bouncing checks shall merit corresponding administrative sanctions against the responsible persons.

5.   Please be guided accordingly.

Reference:
None

Allotment: 1—(M.O. 1-87)

To be indicated in the Perpetual Index
under the following subject:

COMPLAINTS

OFFICIALS
SUPERINTENDENTS