THE Department of Education (DepEd) sealed a partnership with three government banks for the opening and maintenance of bank accounts for non-implementing unit schools (NIUs) to manage cash advances more securely.
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 by First Vice President George Inocencio, President Cecilia Borromeo, and President Renato Claravall, respectively, signed the MOA with Education Secretary Leonor Briones.
The MOA was in relation to the implementation of the COA-DBM-DepEd Joint Circular No. 2019-1 (Management of Cash Advances to DepEd non –implementing unit schools (NIUs) for School Maintenance and Other Operating Expenses and Program Funds).
The circular authorizes school heads of non-IUs to open a bank account under the name of the school where the cash advance for school operating budget and program funds shall be deposited.
Under the existing set up, cash requirements of DepEd non-IUs were released to the respective school heads through cash advance.
Briones said at least 42,000 school heads will now be given the chance to manage their cash advances more securely in financial institutions.
“This is a very important financial reform that will create the environment which will encourage our accountable officials to maintain the standards of honesty,” the Education chief said.
Under the MOA, 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.
“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,” Briones said.