DBM, gov’t banks sign deal for digital release of notice of cash allocation

The Department of Budget and Management (DBM) on Wednesday inked an accord with three government-owned banks to implement the digital or online release of notice of cash allocation (NCA).

In a statement, the DBM said it signed a memorandum of agreement (MOA) with authorized government servicing banks Land Bank of the Philippines (LandBank), Development Bank of the Philippines (DBP), and Philippine Veterans Bank.

Under the agreement, the online release of the NCAs will be carried out through the DBM’s Action Document Releasing System (ADRS).

The ADRS is a web-based application that facilitates the release of approved DBM action documents in digital format directly to the authorized users of recipient agencies.

On the other hand, NCA is a cash authority issued quarterly by the DBM to central, regional and provincial offices and operating units to cover the cash requirements of the agencies.

Budget Secretary Amenah Pangandaman said the agreement “is proof of the government’s continued thrust toward achieving bureaucratic efficiency.”

“Releasing these documents in digital format may seem like a small step but this is a crucial digitalization initiative as it will not only improve ease of doing business; it will also bring us an estimated cost savings of around P2.8 million per month or around P33 million per year with the reduced costs for security paper, printing, supplies, and transportation expenses for physical claiming of documents by agency representatives,” said Pangandaman.

For her part, DBM Information and Technology Group Undersecretary Maria Francesca del Rosario said the institutionalization of the online release of the NCAs fosters greater transparency and efficiency as it eliminates unnecessary steps and paper wastage in physically signing, routing, and photocopying of Action Documents.

“We are committed to playing our role in ensuring a more streamlined and efficient process for releasing NCA to provide immediate, transparent, and efficient public service. Together, we will further help enhance the expenditure performance of national government agencies to implement key programs, activities, and projects in the most immediate time,” said LandBank first vice president Reynaldo Capa.

Philippine Veterans Bank Branch Banking Group head Edwin Amahan said, “This is an example of how youthful administrators can do wonders in public governance. Philippine Veterans Bank stands with you in this very noble journey. And we will walk with you, run with you, in whatever way we can.”

“Truly, it is our pride and honor to join hands with the DBM, along with our fellow government financial institutions, as we aim to facilitate a more efficient release of funds to government agencies,” said Development Bank of the Philippines executive vice president George Inocencio.

According to the agreement, upon digital release of the NCAs from the DBM, the LandBank, DBP, and Philippine Veterans’ Bank shall credit the respective Modified Disbursement Scheme (MDS) sub-accounts and make funds available to concerned agencies.

MDS refers to the disbursement facility utilized by the Internal Audit Service and Operating Units to settle payables through issuance of checks and/or direct credit to bank accounts, chargeable against the account of the Treasurer of the Philippines maintained with government servicing banks. — BM, GMA Integrated News