CORRECTED COPY
ENHANCED GUIDELINES ON ACCREDITATION/
RE-ACCREDITATION OF PRIVATE ENTITIES UNDER THE
AUTOMATIC Payroll Deduction SYSTEM (APDS) PROGRAM
(ENCLOSURE 1 TO Deped ORDER NO. 20, S. 2021)
I. RATIONALE
1. The Department of Education, as a government agency, is authorized by various
laws, rules and regulations to deduct from salaries of its employees such amounts intended for
the payment of contributions and other obligations due to specified to private entities.
2. Such authorization, however, is concurrently limited by other laws, particularly
Section 211 of RA 4670 or the Magna Carta for Public School Teachers, and Section 662, Title I(A),
Book V of the Administrative Code of 1987.
3. In addition, Congress has imposed limitations on the extent of the amount that
may be deducted, as well as on the order of preference of the deductions, through the General
Provisions of the General Appropriations Act (GAA) on authorized deductions from salaries and
other benefits accruing to any government employee, chargeable against the appropriations for
Personnel Services.
4.
In the implementation of authorized deductions, the DepEd is also under
responsibility to consider the welfare of the teachers and employees. Among the powers, duties
and functions of the Secretary of the Department of Education, as provided in Section 7 (A) of
RA 9155 or the Governance of Basic Education Act of 2001, is “enhancing the employment
status, professional competence, welfare, and working conditions of all personnel of the
Department”.
5. As part of DepEd’s implementation of the authorized deduction from salaries, it
has been implementing a centralized Accreditation for the inclusion of private entities in its
Automatic Payroll Deduction System (APDS). The Accreditation provides standards and
procedures that private entities must comply with to be included in the APDS. The Accreditation
also facilitates the orderly implementation of the limitations on authorized deductions, including
the observance of the minimum monthly net take home pay (NTHP) as well as the order of
preference of deductions.
6. This Revised Guidelines on Accreditation/Re-Accreditation of Private Entities under
the APDS is issued to enhance the existing rules and criteria for Accreditation/Re-accreditation,
for continuous systems improvement, such as the automation on granting loans to DepEd
personnel and submission of billing statements by the accredited entities, in view of the current
technology advances and modernization thrust of the government, and to cover issues and
concerns raised by both DepEd personnel and accredited entities with the implementation of the
existing APDS policy which need to be addressed by the Department. Further guidelines relative
to deduction from salaries of government employees may be issued by the Department as
deemed necessary.
Section 21, RA 4670 - Deductions Prohibited. No person shall make any deduction whatsoever from the salaries of teachers except under the specific authority of law authorizing
such deductions: Provided, however, That upon written authority executed by the teacher concerned, (1) lawful dues and fees owing to the Philippine Public School Teachers
Association, and (2) premiums properly due on insurance policies, shall be considered deductible.
1 Section 66, Title I(A), Book V of the Administrative Code of 1987 - “Except as may otherwise be provided by law, it shall be unlawful for a treasurer or other fiscal officer to
draw or retain from the salary due an officer or employee, any amount for contribution or payment of obligations other than those due the government or its instrumentalities”.
2
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Enhanced Guidelines on Accreditation/Re-accreditation of Private Entities
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II.
SCOPE
7. The revised guidelines apply to private entities authorized under existing laws to
be paid through salary deductions and applying to participate in the APDS at the national,
regional, school division, and school levels.
8.
Accreditation/Re-accreditation shall be valid for a period of five (5) years from
the date of the signing of the Terms and Conditions of the APDS Accreditation (TCAA) by the
representative of the accredited entity, unless the Accreditation is earlier revoked by DepEd for
grounds as provided in the TCAA. Moreover, performance of accredited entities shall be evaluated
to assure compliance with the TCAA six (6) months before the third year of their TCAA.
9.
Services offered under these guidelines shall be extended to DepEd officials and
employees who are in actual service at the Central, Regional and Schools Division Offices,
including schools. Officials and employees who avail of these services shall be bound by the terms
and conditions specified in the relevant provisions of this policy.
III. DEFINITION OF TERMS
10. The following terms are defined, as used in these guidelines:
a. Affiliate company refers to an entity which shall act as the accredited entity’s partner
in catering loans and insurance/mutual aid or benefit systems membership to DepEd
personnel. It must be duly registered with the appropriate government regulatory body
(SEC, CDA, IC, and BSP), and which office must meet the requirements in paragraph
22 of these guidelines. Pawnshops and money exchangers (and other similar entities)
are prohibited to act affiliates of APDS accredited entities under these guidelines.
b. Agency Authorized Officer refers to a designated DepEd employee who is
responsible for approving GSIS loans applied by DepEd employees, among others.
He/she shall coordinate with the DepEd Verifier to ensure that repayment of said loan
can be accommodated in the payroll.
c. Automatic Payroll Deduction System (APDS) refers to a mechanism of collecting
payments, through salary deduction, for mandatory and non-mandatory financial
obligations of DepEd employees, and remittance thereof to government and accredited
private entities.
d. Automatic Payroll Deduction System Program refers to a DepEd program
officially recognizing and authorizing private entities to utilize the APDS facility for nonmandatory deductions in the Central, Regional, Schools Divisions, and implementing
unit secondary schools. Entails the execution of Terms and Conditions of the APDS
Accreditation (TCAA, for brevity) which assigns an APDS code and sets the roles and
responsibilities of the accredited entity with regard to the APDS.
e. DepEd Verifier refers to a designated DepEd employee who is responsible for
checking if the loan or any financial obligation being applied for by a certain DepEd
employee can be accommodated in his/her pay slip. He/she shall verify the resulting
net take home pay of a DepEd employee after obtaining a loan or any financial
obligation being applied for.
f. Effective Interest Rate refers to the rate that exactly discounts estimated future
cash flows through the life of a loan to the net amount of loan proceeds. It is also the
rate paid due to the result of compounding over a given time period.
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Automatic Payroll Deduction System Program
Enhanced Guidelines on Accreditation/Re-accreditation of Private Entities
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g. General Appropriations Act refers to the law enacted every fiscal year that defines
the annual expenditure program of the national government and all its
instrumentalities.
h. Interest Rate refers to the proportion of a loan that is charged as interest to the
borrower, usually expressed as an annual percentage of the outstanding loan. It is the
amount to be paid by the Borrower for the use of money for a period of time and is
expressed as a percentage of the total outstanding balance of time on loan.
i. Net Take Home Pay refers to the total amount disbursed to a DepEd Employee in a
payroll month after all the mandatory and non-mandatory deductions have been
deducted.
j. Pay slip refers to the document issued monthly by a payroll services unit to each
DepEd employee showing the employee’s gross receipts, deductions, and net take
home pay for that payroll month.
k. Principal Amount of Loan refers to the gross amount of a loan, based on which,
the interest and loan payments are computed.
l.
IV.
Terms and Conditions of the APDS Accreditation (TCAA) refers to the document
signed by the representative of the APDS accredited entity as proof of its enrollment
to the DepEd APDS Program, duly notarized by a Notary Public and acknowledged by
DepEd. It includes the APDS Code to be used by the accredited entity including its
roles and responsibilities to be followed in the utilization of the APDS facility.
POLICY STATEMENT
11. The DepEd shall regulate the use of its APDS to facilitate and ensure orderly
implementation of salary deductions authorized by law, adherence to legal limitations on salary
deductions, and protection and promotion of the welfare of all teachers and employees, by
addressing the issues and concerns both from internal and external stakeholders and limiting the
disputes regarding issues related to salary deductions.
12.Only entities specifically authorized by law to be paid through salary deductions of
teaching and non-teaching employees’ contributions and obligations may apply for
Accreditation/Re-Accreditation.
13.The DepEd shall impose a ceiling on interest rates, service charges, and other fees
charged by lending institutions participating in the APDS.
14.The DepEd shall endeavor to prevent and eliminate illegal and unauthorized
deductions from the salaries of DepEd officials and employees.
15.Except as otherwise provided by law, any deduction shall be allowed only upon
written authorization by the DepEd official or employee concerned.
16.In the implementation of authorized deductions, the DepEd is also under
responsibility to consider the welfare of the teachers and employees. Among the powers, duties
and functions of the Secretary of the Department of Education, as provided in Section 7 (A) of
RA 9155 or the Governance of Basic Education Act of 2001, is “Enhancing the employment
status, professional competence, welfare and working conditions of all personnel of the
Department”.
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Enhanced Guidelines on Accreditation/Re-accreditation of Private Entities
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V. GENERAL PRINCIPLES
17. A centralized Accreditation/Re-accreditation shall be implemented by the DepEd
Central Office as a requirement to participate in the DepEd’s APDS. The Accredited/ReAccredited entity shall be assigned an APDS Code, and Sub-Codes as applicable, by the DepEd
Central Office (CO) through the Employee Account Management Division (EAMD), which shall act
as the APDS Secretariat. However, for cooperatives whose membership is exclusive to DepEd
teaching, non-teaching, and teaching-related personnel, current or retired (hereinafter referred
to as “DepEd personnel cooperatives”), and whose operations are limited to one Region,
accreditation is delegated to the DepEd Regional Office.
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18.e Accredited/Re-accredited entity shall sign the TCAA of the APDS Accreditation
and acknowledge the same before a notary public.
19. accreditation/Re-accreditation shall be granted to entities that agree to abide by
these specific guidelines, with reference to the following:
19.1Specific authorization by law for payment of contributions or obligations through
salary deductions;
19.2Legal existence and license to operate as granted by the government through its
different regulators;
19.3Full transparency in reporting operations and financial status;
19.4Grounds for suspensions and revocation of Accreditation; and
19.5Other conditions set forth in the TCAA.
20. Entities, including affiliates/associates/partners with contested ownership or
chairmanship are not allowed to participate in the APDS.
21. Entities participating in the APDS as well as all DepEd offices and personnel
concerned shall follow the procedures for the verification of the NTHP, as contained in Annex B
and C of Enclosures 2 and 3, respectively, of this DepEd Order.
22. Entities shall be allowed to participate in the APDS facility in the province3 where
they have an office established in accordance with law. The office shall have a fully equipped
physical site of transaction, inside a building or commercial structure, with a local business permit,
proper sign board, official contact details (landline, post-paid mobile or registered number,
including e-mail address), and full-time manager/authorized personnel and staff who shall
maintain complete records, accept payments, issue statements of accounts, official receipts,
certificates of full payment, and contracts and membership documents, all within specified
timeframes, and attend to other transactions, queries, and complaints of DepEd personnel.
23.
Entities may also be allowed to transact business within a region even without the
existence of an office in a certain province, provided the Entity concerned has its fully equipped
facility/system that enables lending business transactions via online process, from acceptance of
loan applications filed by DepEd borrowers, granting of loans, responding to queries, and others,
as reviewed by the DepEd Central Office APDS Task Force and approved by the Undersecretary
for Finance.
24.
Entities that do not have an office in a province may offer loans and
insurance/mutual aid memberships under APDS to DepEd personnel in that province by
making arrangements and entering into legal agreements with affiliate companies, except for
3
For this purpose, Metro Manila will be considered as one province.
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Automatic Payroll Deduction System Program
Enhanced Guidelines on Accreditation/Re-accreditation of Private Entities
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pawnshops and money exchangers, which shall act as the former’s agent. The said affiliate
company must be duly registered with the appropriate government regulatory body, and must
have an office in the province that meets the requirements in paragraph 22 hereof.
25. For purposes of renewal of the TCAA, the Accredited Entity shall submit its Letter
of Intent for the APDS re-accreditation at least one (1) month prior to the date of
expiration.
26. Entities participating in the APDS for lending business shall conform with the
ceilings on interest and non-interest rates on loans as shown below. Only loans with a term not
exceeding three (3) years will be accommodated under the APDS. Illustrations for the loan
computations from one (1) to three (3) years are in Annexes D-1 to D-3 of Enclosure 2 of this
DepEd Order.
Particular
Ceilings
Contractual Interest Rates (based on
diminishing/declining principal
balance)
1 year – 7.500% per annum (p.a.) or 0.625%
per month
2 years – 9.000% p.a. or 0.750% per month
3 years – 9.660% p.a. or 0.805% per month
One-time Other Charges (Must be
itemized in the Disclosure Statement)
6.000%, deducted upfront from the principal
amount of loan
Effective Interest Rates (EIR) p.a.
1 year – 21.091%
2 years – 16.351%
3 years – 14.886%
27. The Department shall conduct a review of and adjust these rates as often as may
be needed by the prevailing circumstances, in consultation with the relevant government
agencies, and on other policy considerations.
28. The Department shall also post in the DepEd website or any online platforms, or
in any conspicuous places of the DepEd offices, the rates of interest and other charges on loans
to be offered to DepEd officials and personnel by lending institutions participating in the APDS.
29. Entities participating in the APDS shall pay the following service fees, which shall
be collected by the DepEd implementing units (Central, Regional and Schools Division
Offices, as well as Implementing Unit Secondary Schools) through automatic deduction
from the remittance due to the Accredited/Re-accredited Entity, in favor of the DepEd Provident
Fund:
29.1
For loans granted by banks, insurance companies, financing companies: One
percent (1%) of amount to be remitted.
29.2 For loans granted by non-stock savings and loans associations, mutual benefit
associations, and DepEd personnel cooperatives and other associations: One-half
of one percent (0.5%) of the amount to be remitted.
29.3 For insurance premia due to insurance companies: Three percent (3%) of amount
to be remitted.
29.4 For mutual benefit membership dues/contributions due to associations/
cooperatives, non-stock savings and loan associations, and mutual benefit
associations: One percent (1%) of the amount to be remitted.
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VI.
A. ACCREDITATION/RE-ACCREDITATION CRITERIA
MINIMUM REQUIREMENTS
30. o be eligible for consideration for accreditation/re-accreditation, applicants must
satisfy the following criteria:
30.1 Legally organized and duly registered with government regulatory agencies such
as the Securities and Exchange Commission (SEC), BSP, Insurance Commission
(IC), and Cooperative Development Authority (CDA);
30.2 For lending business, the applicant must be authorized to engage in lending based
on the primary or secondary purpose stated in the Articles of
Incorporation/Cooperation;
30.3 For insurance business and mutual benefit and association memberships, the
applicant must be authorized to offer insurance policies and mutual benefit and
association memberships based on the primary or secondary purpose stated in the
Articles of Incorporation/Cooperation;
30.4
Operating and in good standing for the current year as certified by SEC, BSP, PDIC,
IC, or CDA;
30.5
Must have authorized personnel and staff in each of entities’
offices/branches who shall maintain complete records, accept payments, issue
statements of accounts, official receipts, certificates of full payment, and contracts
and membership documents, all within specified timeframes, and attend to other
transactions, queries, and complaints of DepEd personnel;
30.6 For new applicants, must have a track record of at least five (5) years of
operations for the type of accreditation being applied for, except for DepEd
personnel cooperatives which must have a track record of at least two
(2) years;
30.7 Must have sufficient capitalization as provided for by law or regulations, but in no
the case shall the equity as reflected in the two (2) succeeding year’s Audited
Financial Statements (AFS) be less than PhP5 million, except for DepEd
personnel cooperatives whose operations are limited to one (1) region
and the memberships include retired, resigned, and active/current DepEd officials
and employees within their respective coverages. The applicant shall have equity
as follows:
a. At least PhP 2 million for region-wide DepEd personnel cooperatives. The
the applicant once accredited/re-accredited shall utilize the APDS facility only in the
provinces within the region where it has offices as defined in paragraph 22 of
these guidelines.
b. At least PhP 1 million for division-wide DepEd personnel cooperatives. The
the applicant once accredited/re-accredited shall limit the utilization of the APDS
facility within the school's division where it is operating.
c. At least PhP 300,000.00 for DepEd personnel-cooperatives exclusive for
Implementing Unit Schools that prepare its own payrolls (i.e. with direct release
of fund from the Department of Budget and Management). The applicant once
accredited/re-accredited shall limit the utilization of the APDS facility within the
the school where it is operating.
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B. DOCUMENTS FOR SUBMISSION BY APPLICANTS
31. For Accreditation of new applicants:
31.1 The applicant must submit the following original or certified true copies of the
documents issued by the appropriate government regulatory agency:
31.1.1
a.
b.
c.
d.
For SEC-registered entities:
Certificate of Incorporation/Registration
Articles of Incorporation and By-Laws, and Amendments, if any
Updated General Information Sheet
Certification from SEC that the entity has not been dissolved nor has the
The commission received any derogatory information that would prevent it
from exercising its primary purpose or business
31.1.2 For BSP registered entities (in addition to the required documents
from SEC):
a. Certificate of Authority
b. Certification of Good Standing issued by the Philippine Deposit Insurance
Corporation (PDIC)
31.1.3 For IC registered entities (in addition to the required documents from
SEC):
a. Certificate of Registration
b. Certificate of Authority
31.1.4
a.
b.
c.
d.
For CDA registered entities:
Certificate of Registration
Articles of Cooperation and By-Laws, and Amendments, if any
Updated Cooperative Annual Progress Report (CAPR)
CDA Certificate of Good Standing intended for DepEd APDS Accreditation
purposes (original to be presented for validation purposes)
31.1.5
a.
b.
c.
Additional documents required from all new applicants:
Letter of Intent signed by the President/Chairman/Chief Executive Officer
Latest organization profile
Ownership structure, including, among others, the percentage of share
ownership of the stockholders/members
Curriculum vitae/bio-data of corporate directors and officers with
photocopy of ID with picture and signature. For government employees,
the accomplished and filed Civil Service Commission Form 212 (Personal
Data Sheet) must be submitted
List of all products and/or services offered to DepEd personnel. For
applications for insurance business and mutual benefit and association
memberships: approval from their respective government regulatory
agencies to offer such products and/or services
In case of mutual benefit associations, DepEd personnel cooperatives, and
associations, a Certification from its President/Chairman that the
organization is duly operating under existing laws which are managed by
and/or for the benefit of government employees
AFS for the two (2) immediately preceding years, stamped received by the
BIR
Copy of Income Tax Return (ITR) for the two (2) immediately preceding
years, with proof of payment
BIR Certificate of Registration (Form 2303) of Tax
Identification Number (TIN)
List of main and all field offices/branches, including the names of its
Authorized Personnel/Head of Office/Branch Manager per region, with
complete addresses, any official contact number, and official e-mail
d.
e.
f.
g.
h.
i.
j.
k.
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Enhanced Guidelines on Accreditation/Re-accreditation of Private Entities
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addresses, with a corresponding Certification that the said offices/branches
can sufficiently render all the services mentioned in paragraph 22
l. For entities applying for accreditation for lending business: sample
amortization schedules for each type and term of loan, showing the rates
of interest, non-interest, and other charges (itemized), following the
Effective Interest Calculation Model in Annexes “D-1” to “D-5” of Enclosure
2 . For entities applying for accreditation for lending business: subscribed
a statement attesting to the Truth in Lending Act with attached expanded
Disclosure Statement on Loan/Credit Transaction (as required under R.A.
3765, Truth in Lending Act)
n. Business Permits of all offices/branches intended for lending purposes
o. Contract of Lease (effective during the term of the TCAA) or proof of
ownership of offices/branches
p. For affiliate companies: Certification executed by both the private entity
and the affiliate companies stating that the latter can sufficiently render all
the services mentioned in paragraph 22
32.
For Re-Accreditation of private entities with existing APDS Codes:
32.1
To be qualified for re-accreditation process, the applicant entity must comply with
the submission of the reportorial requirements specified in paragraph 8.2 of the
previous TCAA. In addition, the following documents must also be submitted:
a. Letter of Intent signed by the President/Chairman/Chief Executive Officer;
b. Updated Curriculum vitae/bio-data of corporate directors and officers with
photocopy of ID with picture and signature. For government employees, the
accomplished and filed Civil Service Commission Form 212 (Personal Data
Sheet) must be submitted; and
c. Updated List of all products and/or services offered to DepEd personnel. In
the case of insurance companies/MAS organizations, it is required that they
should secure certification from the Insurance Commission on their approved
products and/or services offered.
33.
The Department may, from time to time, require accredited entities to submit hard
copies of Promissory Notes, Authorities to Deduct, Disclosure Statements, Subsidiary Ledgers,
Insurance Policy Contracts, Certificates of Membership, and other APDS-related membership and
transaction documents of DepEd personnel.
VII.
ACCREDITATION/RE-ACCREDITATION PROCESS
34.
Accreditation/Re-accreditation shall be continued in cycles of five (5) years. For
this cycle, the accreditation/re-accreditation of private entities under APDS shall run from the date
of the notarization of the new TCAA until December 31, 2025. Subsequent cycles shall still run
for a full cycle of five (5) years starting January 1, 2026.
35.
Entities aspiring to participate in the APDS must submit the complete set of
documentary requirements to the following:
35.1 DepEd Central Office (CO) –
a. Non-stock savings and loans associations and mutual benefit
associations duly operating under existing laws and cooperatives which
are managed by and/or for the benefit of government employees. For
cooperatives, the operations/offices must be in more than one (1)
region;
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Automatic Payroll Deduction System Program
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b. Associations or Provident Funds organized and managed by
government employees for their benefit and welfare;
c. Licensed insurance companies; and
d. Thrift banks or rural banks accredited by the BSP.
35.2
DepEd Regional Office (RO) - DepEd personnel cooperatives whose composition
of incorporators and members include retired, resigned and
active/current DepEd officials and employees, and whose operations are
limited to one (1) region.
35.3
Cooperatives whose operations are limited only in 1 region with previous
accreditation at the DepEd CO may still submit the complete documents for reaccreditation to the said office for evaluation.
36.
Acceptance of applications shall be as follows:
36.1
For accreditation, the required documents must be submitted on or before July
31, 2021. Evaluation and processing of applications with complete submission of
the said required documents shall reckon on August 1, 2021, and is expected to
be concluded up to the issuance of the TCAA on or before August 31, 2021.
36.2
For re-accreditation, the required documents must be submitted on or before June
30, 201). Evaluation and processing of applications with complete submission of
the said required documents shall reckon on July 1, 2021, and is expected to be
concluded up to the issuance of the TCAA on or before July 31, 2021.
37.
DepEd APDS Task Forces comprising of seven (7) to nine (9) members shall
be formed at the RO and CO. Each Task Force shall be composed of the following personnel
holding plantilla positions:
Designation
Chairperson
RO
a. Regional Director or
Assistant Regional Director
Vice Chairperson
Members
b. Chief Administrative Officer,
Administrative Division
c. Chief Administrative Officer,
Finance Division
d. Supervising Administrative
Officer, Finance Division
e. Head of Accounting Unit,
Finance Division
f. Head, Personnel Section or
Payroll Services Unit,
Administrative Division
g. One (1) representative from
the Legal Unit, preferably
holding an Attorney position
CO
a. Assistant Secretary for
Finance Service
b. Assistant Secretary for Legal
Service
c. Assistant Secretary for Field
Operations
d. Director, ICTS or his
representative
e. Director for Finance Service
f. Chief Administrative Officer,
Employee Account
Management Division
(EAMD)
g. Chief Administrative Officer,
Personnel Division
h. Supervising Administrative
Officer, EAMD
i.
One (1) Representative
from Accounting Division
38.
The designated Chairpersons of the respective Task Forces shall issue an Office
Order designating the Task Force members and furnish the Office of the Undersecretary for
Finance and the APDS Secretariat, a copy of the same. A similar process shall be followed in case
of changes in the composition of a Task Force.
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39.
The members of the Task Force may recommend a permanent alternate within the
same office, holding a plantilla position, to attend meetings in his/her absence. The Chairperson
may designate an officer from the members of the Task Force to officiate a meeting in the
Chairperson’s absence.
40.
The following procedure shall be followed for entities applying at DepEd CO:
40.1
The complete set of documentary requirements must be submitted on or before
the deadlines specified, with the letter of intent addressed to the Office of the
Secretary, through the Undersecretary for Finance.
40.2
The Office of the Undersecretary for Finance, with the assistance of the APDS
Secretariat and Regional APDS Task Forces, shall review and evaluate the
submitted documents as well as validate compliance with all the necessary
requirements by the applicants.
40.3
The Office of the Undersecretary for Finance on the basis of the review, may
approve or disapprove the application. For applications for Re-Accreditation,
records of the concerned entities’ compliance with the previous TCAA will be
considered in making the decision on whether to approve or disapprove. A letter
of notification of the action taken thereon shall be served by the aforesaid Office
to the applicants.
40.4
If approved, a corresponding TCAA shall be executed by the accredited entity,
through its authorized representatives, and acknowledge the same before a notary
public.
40.5
The responsibilities of the accredited entity are contained in the enhanced TCAA
(Enclosures 2 and 3), subject to modification whenever necessary.
40.6
Accreditation is considered complete only upon the notarization of the TCAA.
41.
The following procedures shall be followed for entities applying at the DepEd RO:
41.1
The complete set of documentary requirements must be submitted to the
concerned DepEd Regional Office on or before the deadlines specified, with the
letter of intent addressed to the Regional Director.
41.2
The Regional APDS Task Force shall review and evaluate the submitted documents
as well as validate the compliance of the cooperative with all the necessary
requirements under these guidelines.
41.3
On the basis of the evaluation made by the Regional APDS Task Force, the Regional
Director shall approve or disapprove the application for Accreditation/Reaccreditation. For applications for Re-Accreditation, records of the concerned
cooperative’s compliance with the previous TCAA will be considered in making the
decision. A letter of notification on the action taken shall be served by the aforesaid
Office to the applicants.
41.4
For approved applications, the Regional Director shall send a written request for
the assignment of the APDS Code (and Sub-Codes, if applicable) to the
Undersecretary for Finance, through the APDS Secretariat.
41.5
Upon receipt of the APDS Code (and Sub-Codes, if applicable), the corresponding
TCAA shall be executed by the accredited entity through its authorized
representative.
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41.6
The roles and responsibilities of both parties, as well as the other terms and
conditions of the TCAA, are enumerated in Enclosures 2 and 3, subject to further
modification whenever necessary.
41.7
Accreditation is considered complete only upon the notarization of the TCAA.
42. Non-accreditation or disapproval of the application for Accreditation or ReAccreditation shall result in the denial of the entity’s privilege to transact new business under
APDS. However, for entities failing to get approval for Re-Accreditation, the DepEd shall:
42.1 For lending business: Continue servicing the collection of existing deductions already
included in the APDS, up to the deduction termination dates reflected in the pay slip,
and remit the same to the entity. Thereafter, the APDS Code is automatically
cancelled.
42.2 For insurance premia or membership dues/contributions: Continue servicing
the collection of deductions already incorporated in the payroll system, as of the
date of the disapproval, for the next three (3) months or until requested for stoppage
by the DepEd policy holder/member/depositor, whichever comes earlier, and remit
the same to the entity. Within sixty (60) calendar days from the said disapproval,
DepEd shall notify the concerned DepEd personnel of the stoppage of deductions,
and the latter may transact and/or pay directly to the formerly accredited entity, or
terminate their memberships therewith. Thereafter, the APDS Code and Sub-Codes,
if any, are automatically cancelled.
VIII. SUSPENSION OR REVOCATION OF ACCREDITATION
43.
Entities applying for Accreditation agree that such Accreditation may be suspended
or revoked by DepEd as may be provided in the TCAA.
IX.
MONITORING AND EVALUATION
44.
Monitoring the compliance of APDS accredited entities with these guidelines and
the TCAA, including addressing issues that arise in implementation, shall be undertaken by DepEd
through the APDS Task Forces and the APDS Secretariat.
45.
The APDS Task Forces shall have the following responsibilities within their
respective jurisdictions:
45.1
Validate the existence of offices of entities during the application stage and as the
need arises. To expedite the validation, the services of the Schools Division Office
located near the entity’s office or branch is located, may be tapped, provided, the
Validation Report shall be supported with proof of existence of office like pictures
of the office and its staff and the report is signed by the members of the Regional
APDS Task Force.
45.2
Conduct spot-checking or monitoring activities of the compliance of entities;
45.3
Submit annual reports to the Undersecretary for Finance on the compliance of the
entity of the TCAA on or before the end of February of each year;
45.4
Monitor the submission of annual documentary requirements of school-based
cooperatives;
45.5
Monitor compliance of the designated DepEd Verifiers, Authorized Agency Officers
for GSIS loans and the Pag-Ibig Loan Endorsers, with regard to the requirements
Department of Education
Automatic Payroll Deduction System Program
Enhanced Guidelines on Accreditation/Re-accreditation of Private Entities
Page 11 of 13
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stipulated in the General Provision of the annual GAA on the resulting Net Take
Home Pay of DepEd borrowers when applying for loans under the APDS.
45.6
Conduct investigations, fact-finding activities, meetings, and/or mediation activities
as necessary to address issues raised by various stakeholders, and submit a
corresponding report and/or recommendations to the Undersecretary for Finance
for centrally accredited entities and to the Regional Director for school-based
cooperatives; and
45.7
Other tasks as may be assigned by the Secretary or the Undersecretary for Finance.
46.
When conducting monitoring activities such as validation of existence of offices
and spot-checking, at least three (3) members of the Task Force should be present. The
Validation Report on the existence of the Entity’s office/s shall be submitted in advance to DepEd
Central Office via email. Thus, the corresponding letter of approval may be issued and released
to the Lender prior to the receipt of the original copy thereof.
47.
The APDS Secretariat shall have the following responsibilities:
47.1
Monitor the submission of annual documentary requirements of centrally
accredited entities;
47.2
Validate, consolidate and analyze/review all reports submitted by the APDS Task
Forces;
47.3
Seek opinion from the Office of the Undersecretary for Legal Affairs as needed;
47.4
Collect, analyze, and report data on contributions and obligations covered by APDS;
47.5
Prepare complete staff work on matters needing policy and implementation
decisions;
47.6
Recommend to the Secretary, through the Undersecretary for Finance, appropriate
action, including creation of ad hoc bodies to resolve issues when needed; and
47.7
Other related tasks that may be assigned.
48.
A periodic review of this guidelines to further enhance its provisions and
effectiveness shall be conducted by DepEd.
X.
FINAL PROVISIONS
A.
REPEALING CLAUSE
49. The following DepEd issuances are hereby repealed:
49.1
DO No. 19, s. 2019 entitled “Implementation of the P5,000 Net Take Home Pay
for the Department of Education Personnel for Fiscal Year 2019;”
49.2
DO No. 18, s. 2018 entitled, “Revised Guidelines on Accreditation/Reaccreditation of Private Entities under the Automatic Payroll Deduction System
(APDS) Program;
49.3 DO 49, s. 2017 entitled, “Revised Guidelines on Accreditation/Re-Accreditation of
Private Lending Institutions (PLIs) under the Automatic Payroll Deduction System
(APDS) Program;”
Department of Education
Automatic Payroll Deduction System Program
Enhanced Guidelines on Accreditation/Re-accreditation of Private Entities
Page 12 of 13
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49.4
DepEd Memorandum (DM) No. 489, s. 2009 entitled, “Revised Automatic Payroll
Deduction System (APDS) Guidelines on Accreditation/Re-Accreditation of
Insurance Companies, Mutual Benefits Associations, Cooperatives/Associations
and Other Organizations Authorized by Law;” and
49.5
All earlier DepEd issuances on the same subject.
50.
Unless otherwise repealed or amended, the pertinent provisions of DO 14, s. 2019
entitled, “Implementation of the P5,000 Net Take Home Pay for the Department of Education
Personnel for Fiscal Year 2019” are deemed integral parts and adopted in these guidelines.
51.
Any information to be requested to DepEd by the private entity accredited under
the APDS shall be subject to its availability and compliance with the provisions of Republic Act
10173 entitled “Data Privacy Act of 2012.”
52.
All other rules, regulations and issuances, which are inconsistent with these
guidelines are hereby repealed or modified accordingly.
B. EFFECTIVITY
53.
These guidelines shall take effect upon posting on the DepEd website.
Department of Education
Automatic Payroll Deduction System Program
Enhanced Guidelines on Accreditation/Re-accreditation of Private Entities
Page 13 of 13
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TABLE OF CONTENTS FOR ENCLOSURE 2
Terms and Conditions of the APDS Accreditation (TCAA) for Loans
Particulars
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Page No.
Statement of Principles
Accreditation and Assignment of APDS Code
Granting of Loans
Billing of Loans
Over-the-Counter Payments
Over-deduction
Remittance
Documentary Requirements
Other Conditions
Necessary Attachments
Grounds for Suspension or Revocation
Effectivity of the TCAA
Final Provisions
1
1
1
3
4
5
5
5
6
7
8
8
9
AANNEXES FOR ENCLOSURE 2
Annex
Particulars
Page No.
A
Notarized Secretary’s Certificate supported by a Board Resolution authorizing the
Lender’s representative to execute this TCAA
c/o Lender
B-1
Procedures for the Manual Processing of Loan Applications of DepEd Borrowers
Under the Department’s Program on Automatic Payroll Deduction System (APDS)
10
B-2
Procedures for the Online Process of Loan Applications of Deped Borrowers Under
the Department’s Program on Automatic Payroll Deduction System (APDS) – (NEW
ANNEX)
13
C-1
Prescribed Templates for Authority to Deduct and Promissory Note
16
C-2
Prescribed Template for Disclosure Statement
17
D-1
D-2
D-3
Effective Interest Rate Calculation Models for Loans Using the DepEd Ceilings for
Interest Rates and Other Charges
1-year term
2-year term
3-year term
18
19
20
E
Sample Sworn Statement Regarding the Loan Documents Submitted and Full
Explanation of the Terms and Conditions of the Loans to the Borrowers
21
F
Procedures for the Online Process on the Submission of Monthly Billing Statements
by the Lender Under the Department’s Program on APDS (NEW ANNEX)
22
G
Provinces/Regions Where the Lender has Office/s as Validated By DepEd
23
H
Grounds for Suspension or Revocation of Accreditation (For Lending, Insurance
Premia, or Membership Dues/Contributions, as Applicable)
24
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(ENCLOSURE 2 TO DEPED ORDER NO. 20, S. 2021)
TERMS AND CONDITIONS OF THE APDS ACCREDITATION (TCAA)
FOR LOANS
1.
STATEMENT OF PRINCIPLES
1.1
Participation in the DepEd Automatic Payroll Deduction System (APDS) at the
national, regional and school levels may be granted to private institutions authorized
under specific law to be paid through salary deductions, and accredited by DepEd
after fulfillment of requirements as provided in DepEd Order No. 20, s. 2021.
1.2
The accredited private institution shall subscribe to the following principles:
1.2.1
1.2.2
2.
3.
Full transparency in reporting operations and financial status as evidenced
by audited financial statements and appropriate disclosure statements; and
Integrity of operations through proper and complete documentation of
loans to DepEd personnel.
1.3
The DepEd shall ensure that the objectives and purposes of APDS are achieved
through proper regulation, periodic review, and accreditation/re-accreditation.
1.4
The APDS shall be implemented in accordance with the limitations imposed by
existing and new laws, such as on monthly net take-home pay (NTHP) and order of
preference of deductions.
ACCREDITATION AND ASSIGNMENT OF APDS CODE
2.1
Accredited entities shall be assigned APDS codes for their exclusive use.
2.2
APDS Code for lending business shall strictly be used for the collection
of loan payments only1.
2.3
The APDS Code is not transferable, for sale, or for assignment to any other entity,
except in cases of acquisition, merger, and consolidation of entities. In the event
that the Lender changes its corporate name or effects other corporate changes, the
Lender shall furnish DepEd with duly certified copies of the amended Articles of
Incorporation/Cooperation [as applicable to the entity] and by-laws approved by the
SEC/CDA [as applicable to the entity] to enable the DepEd to update its records
accordingly.
GRANTING OF LOANS
3.1
For loans intended to be serviced through the APDS, the Lender shall process loan
applications and release loan proceeds in accordance with the terms and conditions
herein.
3.2
Processing of online/digital applications may be allowed under APDS, provided
DepEd is notified by the Lender in writing, duly supported with information on its
detailed procedures/mechanics and online process flow in granting loans presented
to the DepEd Central Office APDS Task Force, and acknowledged/authorized by
DepEd.
1
The APDS Code issued in this TCAA shall not be used for deductions for insurance premia and/or membersip dues/contributions.
Page 1 of 26
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3.3
The Lender shall exert all efforts to examine the authenticity of documents
submitted online by the applicant. In case of fraud, and/ or misrepresentation
thereof, it shall be solely responsible for the process of approving the membership
applications of DepEd personnel.
3.4
The Lender may approve a loan only upon certification by the DepEd Verifier,
secured by the Lender through the DepEd Borrower (hereinafter referred to as
“Borrower”), stating that the monthly payments can be accommodated within the
threshold of the monthly NTHP as required in the General Appropriations Act (GAA)
at the time of approval of loan. Succeeding deductions shall conform to the monthly
NTHP as provided by the GAA or other applicable laws at the time of the deduction.
3.5
The Lender shall accept loan applications only from DepEd officials and personnel
who have served at least six (6) months in DepEd and are incorporated in the
regular payroll with issued employee number, whether assigned at the national,
regional, schools division, or school level [implementing unit (IU) or non-IU].
3.6
The Lender shall follow
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