MANILA, Philippines — The national government is set to release in advance the cash requirement of schools and universities for maintenance and other operating expenses (MOOE) within the first week of every month or quarter, subject to the availability of funds.
This is pursuant to Joint Circular 1 released by the Department of Budget and Management (DBM), Commission on Audit (COA) and Department of Education (DepEd), which provides the guidelines for the management of cash advances to DepEd non-implemeting units for MOOE and program funds.
“The cash requirement for MOOE of the schools shall be released within the first week of every month or quarter, subject to availability of cash allocations as released by the DBM,” the circular read.
“The amounts to be released for each month or quarter should correspond to expenditures needed for the month or quarter, taking into consideration actual historical utilization to minimize the amount of funds released as cash advance,” it added.
To properly manage these cash advances, the joint circular authorized heads of public schools to open and maintain a checking or savings account under the name of their school with government servicing banks (GSBs).
Opening accounts with non-GSBs will also be allowed, provided that there is no existing GSBs within the 20-kilometer radius from the school.
The account opened will be used to deposit the cash advance of the principal for the operating budget and program funds of the school.
However, the authority to open a bank account for the school will only be approved by the Bureau of the Treasury upon the submission of a request by DepEd, as well as other information.
To liquidate the cash advance, school heads should submit to the concerned Schools Division Offices (SDOs) or DepEd Regional Offices (ROs) the cash in bank register, together with the supporting documents and a copy of bank statement or passbook.
“Liquidation reports for disbursements of up to 75 percent of the amount given as cash advance shall be submitted as basis for the release of the MOOE budget for the subsequent month or quarter,” the circular stated.
By the end of the year, the bank account should only have the maintaining balance required by banks. The balance of the school bank account in excess of the required maintaining balance should be directly remitted to the BTr by the GSB or non-GSBs at the end of the year.
The interest income of the account opened should also be transferred automatically to the BTr by the GSBs every quarter, and by non-GSBs every end of the year. These will be recognized in the BTr’s books of accounts as remittances of income of the government.
DepEd SDOs or ROs will be tasked to reconcile the amount withdrawn based on the bank statement or passbook with the reported disbursement and the supporting documents submitted for liquidation of the cash advance.