Submitted by:

Mr. Malinao, Jeson S.

Submitted to:

Prof. Myra T. Miraflores

Let’s Analyze

Activity 1. Getting to know the basic terms in government accounting is not sufficient. What
additionally matters is you ought to have the option to clarify the flow of transactions. Now, I will
expect you to explain completely your answers.

1. What happens when there is a notice of allocation?

The NCA shall be the authority of an agency to pay operating expenses, purchases of
supplies and materials, acquisition of PPE, accounts payable, and other authorized
disbursements through the issue of MDS checks, ADA or other modes of disbursements.

Notice of Cash Allocation (NCA) releases to be made by the DBM based on the Agency
Work and Financial Plan and the cash available in the Bureau of the Treasury. The NCA
provides the authority for the maximum amount of withdrawals that an agency can make
from government servicing banks for the month indicated.

2. Explain the different modes of disbursements.

(a) checks (MDS or commercial checks), refers to a check issued by government agencies
chargeable against the agency's checking account with AGDBs. These are covered by
income/receipts authorized to be deposited with AGDBs; and funding checks received by
Operating Units from Central/Regional/Division Offices, respectively.
(b) cash (out of cash advance granted to authorized Disbursing Officer), based on general
payroll and pay salaries, allowances and other benefits of NSC Officials and Employees.
(c) advice to debit the account, refers to an authorization issued by the NGA/OU appearing in
the lower portion of the List of Due and Demandable Accounts Payable-Advice to Debit
Account (LDDAP-ADA),
(d) tax remittance advice, a serially-numbered document that should be used by the
NGAs in the remittance of withheld taxes on funds coming from DBM. This form is being
attached to every withholding tax return filed as payment for taxes withheld.
(e) working Fund/CDC, authority issued by DBM to the Department of Foreign Affairs (DFA)
and Department of Labor and Employment (DOLE) to utilize their income collected/retained
by their Foreign Service Posts (FSPs) to cover their operating requirements, but not to exceed
the released allotment to the said post;
 (f) direct payment method, This type of disbursement should be covered by an NCAA.
This mode of disbursement is made through the JEV issued by the BTr to the
availing/implementing agency to record payment of goods and services made directly by
the lending institution to the supplier or contractor. The JEV shall be recorded in the GJ.

3. In your own words, what is Disbursement for Inter-Agency Transferred Funds

(IATF)?
The cash or money transferred or sub-allotted by the agency to which the allotment was
originally released in favor of another agency which will implement the project.