STRICT COMPLIANCE TO GUIDELINES FOR THE APPLICATION OF THE CHECKLESS PAYROLL SYSTEM AND AMENDMENTS

a.      All DepEd
teachers and employees located within 1st and 2nd Class municipalities
are required to avail of the direct (ATM) payroll system.

b.      Exemption
to ATM payroll system will be upon the recommendation of the Regional
Director for reason of impracticability or absence of banks in the area.

c.       In areas where ATM services are not available, banks may be chosen to provide direct payroll thru passbook.  Private banks chosen for this purpose may serve as conduits of the depository bank of the region.  This must be coordinated with the Office of the Undersecretary for Administration and Finance.

d.      The following is an updated list of banks that have an existing MOA with DepEd to provide ATM payroll.

– Land Bank of the Philippines

– Development Bank of the Philippines

– Philippine Veterans Bank

– 1st e-Bank (as conduit of LBP)

2.         Reports are being received regarding the loose compliance of the guidelines in DepEd
Memorandum No. 27, s. 2002 particularly on the deadlines related to the
processing of payroll (Section III) and funding (Section IV).

These guidelines must strictly be followed to avoid unnecessary delays in the implementation of direct (ATM) payroll.

3.         To
enable the IBM-Accounting Unit to effectively and accurately audit the
ATM preliminary payroll, submission of the updated Monthly Report of
Service (F-7) to the Payroll Services Division and to IBM Accounting
Unit must be on or before the 5th of the following month is hereby
reiterated.  This is also in consonance with DepEd Memorandum No. 27, s. 2002.

No submission of the required F-7 may result in:

– the delay of the processing of payroll

– the delay of the eventual release of salaries of teachers who are on leave without pay

– the delay of salaries of those who may have resigned/retired

– non-deduction of overpayments and absences

To ensure strict compliance
thereof, salaries of Division Superintendents, Assistant
Superintendents, Administrative Officers and other accountable Officials who fail to comply shall be withheld pending the updated submission of the Monthly Report of Service.

4.         For strict compliance.

Adopted: 24 June 2002

(SGD.) ERNESTO S. PANGAN
Undersecretary