PASIG CITY, October 18, 2019 – The Department of Education (DepEd), led by the Secretary Leonor Magtolis Briones and Finance Undersecretary Annalyn Sevilla, and three government servicing banks officially signed Memorandums of Agreement (MOAs) for the opening and maintenance of bank accounts for non-implementing unit schools (non-IUs) in relation to the implementation of the COA-DBM-DepEd Joint Circular No. 2019-1 (Management of Cash Advances to DepEd Non-IUs for School Maintenance and Other Operating Expenses and Program Funds).
The joint circular allows school heads of public elementary or secondary schools operating without complete sets of books of accounts to open and maintain bank accounts under the name of the school where the cash advance for school operating budget and program funds shall be deposited.
Two state-owned banks, the Development Bank of the Philippines and the Land Bank of the Philippines, and private government-authorized depository bank Philippine Veterans Bank, represented during the signing ceremony by First Vice President George Inocencio, President Cecilia Borromeo, and President Renato Claravall, respectively, each signed a MOA with DepEd. The MOAs bear mostly uniform provisions regarding account opening, maintenance, and reporting arrangements.
“Through these Memorandums of Agreement, at least 42,000 school heads in so called non-implementing unit schools will now be given the chance to manage their cash advances more securely in financial institutions,” the Education Secretary said.
Under the MOAs, a non-IU may open a checking account with a bank accessible and located near the school as endorsed by the Schools Division Office and approved by the Bureau of Treasury. The features and terms of the accounts have been made competitive for the benefit of the schools. For instance, an account may be opened using an initial deposit of P500 only with a required minimum average daily balance of the same amount.
Secretary Briones concluded, “We hope that these agreements, once they are fully implemented, will help ensure that our financial systems are secure, that our accountable people are given the kind of environment which will allow them to practice the value of honesty, and will suit the needs of the majority of our schools.”
The MOA signing ceremony was held on October 17 at the DepEd Central Office, Pasig City. Other officials and representatives from the DepEd and the partner banks attended the event.