REVENUE MEMORANDUM CIRCULAR NO. 24-2014 issued on April 14, 2014 publishes the full text of Circular Letter No. 2013-16 B issued by the Secretary of the  Department of Budget and Management (DBM) entitled “Addendum to DBM Circular Letter No. 2013-16 Re: Expanded Modified Direct Payment Scheme (Expanded MDPS) for Accounts Payable (A/Ps) of National Government Agencies/Operating Units (NGAs/OUs)”.

         All NGAs/OUs are directed to continue to issue Modified Disbursement System (MDS) checks to cover payment of A/Ps to subject creditors. Upon advice from the MDS-Government Servicing Banks, DBM will issue another Circular on when NGAs/OUs shall use the Advice to Debit Account (ADA) per List of Due and Demandable A/Ps for payment of A/Ps to government corporations and utility companies.

           In the case of creditors of NGAs/OUs with small transactions (e.g., claims lower than the required amount for opening or maintaining an account with the bank) and/or creditors which cannot be conveniently paid through ADA, as determined by the Agency Head, the payment of their claims may be made via the Petty Cash Fund/Cash Advance of the agency, subject to the rules and regulations on the utilization and liquidation of cash advance prescribed under the Commission of Audit guidelines.