Cash advances for travel shall be liquidated as


Cash advances for travel shall be liquidated as follows:
i. Local travel - within 30 days upon return to the personnel's workstation.
ii. Foreign travel - within 60 days upon return to the Philippines. No official
or employee is allowed to go on an official foreign travel if he is due to
retire within 1 year after the foreign travel.
e. No additional cash advance shall be given to any official or employee
unless the previous cash advance given to him is first liquidated.
f. Transfer of cash advance from one officer to another is prohibited.
g. A cash advance shall not be used to en cash checks or to liquidate a
previous cash advance.

Illustration:
Entity A disburses P10,000 for certain expenses through
cash advance. The entries are as follows

Disbursements through Advice to Debit Account (ADA)
The ADA, or more specifically the List of Due and Demandable Accounts
Payable - Advice to Debit Account (LDDAP-ADA) , is an accountable form used as
an authorization issued by a government agency to the MDS-GSB instructing the
bank to debit a specified amount from its available NCA to pay the
creditors/payees listed in the LDDAP-ADA.
The ADA works like a check, except that one ADA can be drawn to pay various
payees, as long as they all maintain accounts in the same bank where the ADA is
drawn. Separate ADAS shall be prepared for payees using other MDS-GSBs. ADA
payments are directly credited to the payees' accounts.

Simply stated, an ADA is an authorization for a fund transfer (between
accounts in same bank) or a bank transfer (between accounts with different
banks) from the issuing agency's NCA bank account to the bank accounts of
specified payees.
The following expenditures shall not be paid through ADA:
a. Payment of Terminal Leave and Retirement Gratuity benefits;
b. Remittance of GSIS, PhilHealth, and Pag-IBIG contributions,
c. Payments to utility companies (eg. electricity, water, telephone, internet,
petroleum, and the like).
d. Other payables which cannot be conveniently nor practicably paid using
the ADA.

Illustration:
Entity A pays P100,000 accounts payable through ADA.

Disbursement through electronic Modified Disbursement System
The MDS is like the ADA except that disbursements are made from the accounts of the BTT that are
maintained with the Land Bank of the Philippines (LBP). Agencies subscribed under LBP's eMDS can
make online disbursements for selected transactions.
Disbursements through Cashless Purchase Card (CPC) System
Disbursements under the CPC System are made through the use of an electronic card (ie , credit card ).
The authorized credit card company is the Citibank . Guidelines in the use of CPC System are as follows:
a. CPC purchases shall be only for specific eligible items and only with specific merchants.
• Merchants - refer to the sellers or suppliers authorized by Citibank.
b. Only authorized individuals shall be allowed to use the CPC, subject to monthly credit limits.