2021 GUIDELINES ON ACCREDITATION RE-ACCREDITATION OF PRIVATE ENTITIES UNDER THE AUTOMATIC PAYROLL DEDUCTION SYSTEM PROGRAM

 

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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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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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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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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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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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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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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 <number> 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 the procedure on the processing of loan application and

approval as contained in Annex “B-1” (for on-site/manual processing) and

Annex “B-2” (for online processing).

3.7

The Lender shall immediately release the loan proceeds to the Borrower upon

approval.

3.8

The Lender shall ensure that every loan is fully documented with a completely filled

out Authority to Deduct (ATD), Promissory Note (PN), and Disclosure Statement

(DS). These must be accomplished following the standard forms/templates as

contained in Annexes “C-1” and “C-2”, and with consistent information. The Lender

shall furnish the Borrower copies of these documents free of charge, upon release

of the loan, including a copy of the amortization schedule, in accordance with

Annexes “D-1” to “D-3” of this TCAA.

3.9

Except for existing loans at the time of execution of this TCAA, the Lender is

authorized to grant only one (1) new loan per Borrower for inclusion in the APDS.

However, the Lender may grant additional loan to Borrowers in the event there is a

declaration of state of calamity in the particular province/s, subject to NTHP

verification.

3.10

3.9.1

Availment of this additional loan shall be available within three (3) months

after the declaration of state of calamity.

3.9.2

Additional loan due to other forms of emergency situation shall also be

allowed upon the approval of the DepEd Secretary through the

Undersecretary for Finance.

In case of loan renewal, the Lender shall deduct the outstanding principal balance

from the proceeds of the renewed loan and reflect such in the Disclosure Statement

(DS). All loan renewals, regardless whether applied for by the Borrower before its

end term, shall be treated as a new loan. Application for renewal of loan shall be

allowed only once on existing loans granted under the previous TCAA of the Lender,

as reflected in the pay slip of DepEd personnel.

3.11 The Lender may be allowed to offer one-time restructuring of current and past due

loans (Undeducted Obligations) to the Borrower, subject to the following

conditions:

i.

Application for loan restructuring by the Borrower is voluntary;

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ii.

Only loans reflected on the pay slip of the Borrower shall be restructured;

iii.

In case the Lender has granted more than one (1) loan to a Borrower as

reflected on the Borrower’s pay slip, the Lender shall consolidate these into

one (1) loan during restructuring; and

iv.

Penalties, if any, shall be waived (i.e., shall not be charged against the

Borrower directly or indirectly)

3.12

Granting of additional, renewal and restructuring of loans shall be subject DepEd’s

verification process if the corresponding loan amortization can be accommodated in

the payroll, and shall be with lower or the same loan terms based on the TCAA.

3.13

The Lender shall abide by the APDS policies on the terms and conditions of loans to

be offered to Borrowers, including but not limited to the ceilings on interest rates

and non-interest charges, and shall not impose any other charges except as

provided in Annexes “D-1” to “D-3” of this enclosure.

3.14

The Lender shall ensure that conditions on penalties and/or past due interest on

loans, if any, shall be reflected in the DS to be signed by Borrowers, with a notation

that the same shall not be collected through the APDS. The fully accomplished DS

shall be an indispensable requirement for inclusion of the loan in the APDS.

3.15

The Lender shall not compel any Borrower to take out any type of insurance contract

as a condition to the loan agreement, except credit life insurance, the premium for

which shall be included in the one-time other charges specified in Annexes “D-1” to

“D-3”.

3.16

The Lender shall fully explain the terms and conditions of the loan to the Borrower.

The Lender shall submit a Sworn Statement to this effect together with its billing.

(See Annex “E” for the sample.)

3.17

The Lender shall not require the surrender of an Automated Teller Machine (ATM)

card as collateral from Borrowers for their loans.

3.18

The Lender shall not deduct advance payments from the loan proceeds of the

Borrowers.

3.19

The Lender shall ensure that the venue of litigation in the event of legal suit against

the Borrower or the Lender shall be within the location of the Borrower’s work

station only.

4. BILLING OF LOANS

4.1

The Lender shall consolidate all the loan accounts granted within a month into one

billing.

4.2

The Lender shall be responsible for submitting monthly billings to the PSU and IU,

and checking and retrieving any returned billings (refer to Annex F for the

procedure). Any billing for new loans granted by the Lender that will reduce the

monthly minimum NTHP shall not be accommodated and shall be returned to the

Lender.

4.3

The Lender shall not bill new loans if the Borrower has existing Undeducted

Obligations as reflected in his/her pay slip.

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4.4

For loan amortizations to be incorporated in the next payroll month, the Lender shall

submit billings for all loans granted within the current month on or before the 5th

working day of the same month. Under no circumstance shall the Lender bill a

Borrower for loans not yet granted.

4.5

The Lender shall submit billing statement to DepEd in an electronic format as agreed

with the PSU and IU. The billing must be duly supported with soft copies of the

required ATD, PN, DS, proof of loan release (i.e. checks, loan vouchers, credit

memos, remittance lists, and others) duly acknowledged by Borrowers and Sworn

Statement mentioned in item 3.16 above.

4.5.1

Only billings certified by DepEd Verifier that such loan amortization could

be accommodated in the payroll and with complete supporting documents

shall be processed by the PSU. The Lender may opt to submit billing

statement via email or direct to the PSU/IU secondary school’s office.

4.5.2

Notarization of the PN is optional. Unless it is notarized, notarial fee shall

not be included under Other Charges.

4.5.3

The Lender shall be solely responsible in case of misrepresentation in the

submission of the said supporting documents.

4.6

The Lender shall provide copies of the billings to the concerned Schools Division

Offices within ten (10) days after the submission of its billing to the DepEd.

4.7

The Lender shall not charge penalties/fines/surcharges due to delays of payments as

a result of any of the following:

4.7.1

4.7.2

4.7.3

4.7.4

4.7.5

Failure on the part of the Lender to pick up remittance checks;

Non-remittance due to suspension or revocation of Accreditation;

Failure of the DepEd to remit on time due to errors, inadvertence, force

majeure, or any extreme circumstance;

Non-existence of office or affiliate company in a particular province; and

Other reasons/causes similar or analogous to the above.

4.8

In case of Borrower’s transfer of work station to other region, for purposes of

collection only, the Lender may submit the corresponding billing to the concerned

PSU/IU. Such billing shall be supported with new ATD signed by the Borrower and

other requirements specified in item 4.5 above. The Lender shall not renew the

Borrower’s loan unless the former has established office or affiliate/partner duly

acknowledged by DepEd in the region where the Borrower has transferred.

4.9

In case the Borrower was temporarily removed from the regular payroll due to

prolonged leave of absence, (or any other similar or analogous reasons), the loan

deductions on his/her pay slip shall be retained and shall appear once he/she has

reported back to office, and is integrated back to the regular payroll.

4.10

The Lender shall be responsible or collecting the outstanding loans of its Borrowers

outside APDS, in case of their retirement, resignation or termination of appointment.

5. OVER-THE-COUNTER PAYMENTS

5.1

The Lender shall not refuse to accept tender of payment made in advance by

Borrowers, whether partial or in full. In case of full payment, the Lender shall

immediately: a) inform the PSU/IU to delete the loan deductions; and b) submit the

deletion file for the said deduction.

Page 4 of 26

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5.2

In case of advance payment, the Lender shall collect only the outstanding principal

balance and shall charge interest only up to the date when the advance payment was

made.

5.3

In case of full payment of loan by the Borrower, the Lender shall automatically include

the Borrower’s name in the list of loan amortizations for stoppage in the payroll and

in the Deletion File to be effected immediately in the next payroll month.

5.4

The Lender shall request the PSU and IU the monthly list of payroll deductions that

were stopped, and the corresponding supporting documents such as the Borrower’s

request for stoppage.

6. OVER-DEDUCTION

6.1

In case of over-deductions, the Lender shall refund the corresponding amount to the

Borrower concerned within thirty (30) days from knowledge or notice thereof.

6.2

The Lender shall request DepEd for the adjustment of Service Fee in the next payroll

month, corresponding to the amount refunded on over-deductions. The said request

must be duly supported with proof of refund, duly acknowledged by the Borrower.

7. REMITTANCE

7.1 The Lender shall pay DepEd a service fee of ____ percent (___%) of the total monthly

collection, which shall be automatically deducted from their collection before

remittance. [The rate shall be based on Title V General Principles, Item 29, of the

Revised Guidelines on Accreditation/Re-Accreditation of Private Entities under the

APDS.]

7.2

The Lender shall issue an OR to DepEd within fifteen (15) days after remittance of

payments. Failure to do so will cause the suspension of the release of succeeding

remittances until the issuance of the OR. The Lender may request DepEd to remit the

payments through either of the following modes:

a. Through intra- or interbank fund transfer: The Lender shall coordinate with the

remitting DepEd office for the procedure in setting up the fund transfer. The

Lender shall shoulder the service charge, if any.

b. Through check: The Lender shall pick up the remittance check from DepEd

within the succeeding month after the deductions were effected in the payroll.

Otherwise, the preparation of succeeding checks will be suspended until the

prepared check is picked up. Any request for replacement of stale checks shall

be supported by written justification from the Lender.

7.3

Loan amortizations shall be refunded to the Borrowers in case the corresponding

remittance check became stale and not requested by the Lender for replacement

after notification by the DepEd for three (3) times.

8. DOCUMENTARY REQUIREMENTS

8.1

The Lender shall ensure the issuance of a Statement of Account (SOA) for every loan

granted to a Borrower, free of charge, annually and anytime upon request, preferably

within the day that the request was made by DepEd or by the Borrower, but in no

case after more than three (3) days from such request. The SOA shall include an upto-date payment history.

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8.2

The Lender shall submit through email or electronic medium (USB), and other digital

means, the following documents, duly certified as true copies by the concerned

government regulatory agencies (i.e. SEC/CDA/IC), to the DepEd Central Office (CO),

annually, through the APDS Secretariat, on or before September 30, except for

business permit/s, the deadline for which is March 31 of the current year.







Audited Financial Statements for the previous year, duly filed and stamped

received by the BIR

Corporate income tax return for the previous year, duly filed and stamped

received by the BIR

Business Permit/s for the current year in the provinces where the Lender has

its office/s

[Additional documents as applicable to the entity:]













8.3

SEC Certification that (i) the Lender has not been dissolved and (ii) that the

Commission has not received any derogatory information that would prevent

the entity from exercising its purpose/s as stated in its Articles of Incorporation.

The Certification shall cover a period of one year immediately preceding its

issuance.

General Information Sheet for the current year stamped received by the SEC

Certificate of Compliance issued by the CDA for the current year

Cooperative Annual Progress Report (CAPR) for the current year

PDIC Certificate of Good Standing covering the current year

IC Certificate of Authority covering the current year

The Lender shall submit to the DepEd CO, copy furnished the concerned DepEd

Regional Offices (ROs), reports on Outstanding Loan Receivables from Borrowers,

duly certified by the Lender’s Chief Accountant or his/her equivalent, on a semiannual basis (in electronic– MS Excel format and hard copies) scheduled as follows:

Cut-off Period

Deadline

As of June 30 of the year

On or before September 30 of the year

As of December 31 of the year On or before March 31 of the following year

9.

OTHER CONDITIONS

9.1

The Lender shall not enter into any contract or agreement with DepEd offices other

than the CO/RO regarding salary loans under APDS.

9.2

The Lender shall limit its operation to provinces/regions where it has office/s and

affiliate companies. The office shall employ a full-time manager or authorized

personnel, and staff who shall maintain the complete records/loan documents,

accept payments, issue SOA, OR, and CFPL, and attend to other loan transactions

and any queries/complaints of DepEd personnel. Annex “G”, which forms an integral

part of this TCAA, contains the provinces/regions, including the location of its offices

(main and branches) and affiliate companies, if any, per province/region, where the

Lender is authorized to operate.

9.3

In case of transfer of the Lender’s office/s to another location or site, the Lender shall

notify DepEd in writing regarding such transfer before the closure of the existing

office/s, and submit corresponding necessary documents, for proper validation.

9.4

In case of change in contact number/s regardless if post-paid or registered mobile in

the name of the Lender or landline telephone, the Lender shall notify/update DepEd

Central Office by submitting a Certification stating therein the changes on contact

number/s that will be officially used in transacting with DepEd employees.

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9.5

The Lender shall make available to DepEd for inspection at any reasonable time all

ATDs, PNs, DS and other related documents in the course of periodic review of the

loan portfolio.

9.6

In case of a merger or consolidation involving the Lender, the Lender shall make sure

that the surviving entity shall submit the following within three (3) months upon their

availability, in addition to the documents required for accreditation:

 Formal letter signifying their intention to maintain their APDS accreditation for

lending under the same deduction code together with a board resolution or

secretary's certificate;

 Certified true copy of the Articles of Merger or Consolidation; and

 Deed of Assignment, if any.

9.7

In case the Lender is put under Receivership/Liquidation, the DepEd shall continue

the payroll deduction from the monthly salary of the Borrower until full payment and

the corresponding remittance to the appropriate government regulatory agency

(PDIC for banks, CDA for cooperatives, Insurance Commission for insurance

companies, etc.). However, the DepEd shall automatically stop the deductions of

loan amortization in case of written request from the Borrower.

9.8

The Lender shall not use the name of DepEd or the term “public school teacher” in

its promotions or in any form of advertisement.

10. NECESSARY ATTACHMENTS

10.1 This TCAA shall include as integral parts the following attachments:

10.1.1

Annex “A” – Notarized Secretary’s Certificate supported by a Board

Resolution authorizing the Lender’s representative to execute this TCAA.

10.1.2

Annexes “B-1 and B-2” - Procedures for the Processing of Loan

Applications of DepEd Borrowers Under the Department’s APDS (onsite/manual and on-line process, respectively).

10.1.3

Annexes “C-1” and “C-2” – APDS Templates/Standard Format of

Authority to Deduct, Promissory Note, and Disclosure Statement

10.1.4

Annexes “D-1” to “D-3” – Effective Interest Rate Calculation Models for 1-,

2-, and 3-year loans using the DepEd ceilings for interest rates and other

charges.

10.1.5

Annex “E” – Sample Sworn Statement regarding the loan documents

submitted and full explanation of the terms and conditions of the loans to

the Borrowers.

10.1.6

Annex “F” – Procedures for the Online Process on the Submission of

Monthly Billing Statements by the Lender Under the Department’s Program

on APDS.

10.1.7

Annex “G” –– Provinces/Regions where the Lender has office/s as validated

by DepEd, with the main office per province/region identified, indicating

therein the address/es, official contact numbers, and the name/s of

manager/s and contact person/s.

10.1.8

Annex “H” – Grounds for Suspension or Revocation of Accreditation.

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11. GROUNDS FOR SUSPENSION OR REVOCATION

11.1

The Lender agrees that its Accreditation may be suspended or revoked by DepEd

based on grounds enumerated in Annex “H”.

11.2

Suspension, which involves the withholding of remittance for not less than one (1)

month but not more than six (6) months, and the corresponding non-acceptance of

new business or deduction billing for not less than one (1) month, shall be imposed

upon repeated commission of grounds classified as “Simple”.

11.3

The Accreditation shall be revoked upon commission of grounds classified as

“Serious”. When the Accreditation is revoked, the Lender shall no longer be allowed

to grant new business in the affected provinces/regions under the APDS. However,

collection of deductions already incorporated in the APDS as of the date of revocation

shall continue up to the termination dates reflected in the pay slip. Thereafter, the

APDS Code is automatically cancelled.

11.4

Any suspension or revocation imposed upon a particular office shall likewise be

considered as sanction against all its other offices within the same province/region.

If imposed on the Head Office, the same shall be imposed upon all its other offices

in the national level.

11.5

Any complaint for the commission of any of the grounds for suspension or revocation

should be made in writing and sufficient in form and substance. For the purposes of

a formal investigation, the complaint must:

 Contain the names and addresses of the complainant/s;

 Contain the entity or person subject of the complaint;

 Contain the acts or omissions complained of constituting the infraction, based

on the personal knowledge of the complainant;

 Be accompanied with supporting documents, as needed; and

 Be notarized.

However, DepEd shall not be precluded from conducting an investigation/factfinding on the basis of other information received or discovered.

11.6

Commission of grounds for suspension or revocation shall be validated by the

appropriate committee or task force designated by the Secretary. The APDS Task

Forces in the CO and ROs may impose the suspension or revocation as a result of its

investigation. The suspension or revocation may be appealed to the Office of the

Secretary, through the Office of the Undersecretary for Finance, within a period of

fifteen (15) days from notice. Pending the resolution by the Office of the Secretary,

the suspension or revocation shall be held in abeyance. The suspension or revocation

imposed by the APDS Task Force shall be reported to the Secretary, through the

Undersecretary for Finance, for monitoring and records purposes.

12. EFFECTIVITY OF THE TCAA

12.1

This TCAA shall be valid upon signing and notarization, and shall be effective until

December 31, 2025.

12.2

For purposes of renewal of this TCAA, the Lender shall submit its Letter of Intent

for the APDS re-accreditation at least one (1) month prior to the date of expiration.

Page 8 of 26

CORRECTED COPY

13. FINAL PROVISIONS

13.1

This TCAA, its annexes, and pertinent DepEd issuances shall be the governing

documents with reference to the inclusion of the Lender in the APDS.

13.2

The Lender shall conform to any APDS policy subsequently issued by DepEd in the

form of DepEd Order, Memorandum, or other issuance. Any provision in this TCAA

affected by such subsequent APDS policy is deemed automatically modified or

repealed as applicable.

CONFORME:

ACKNOWLEDGEMENT

Page 9 of 26

CORRECTED COPY

ANNEX “B-1”

PROCEDURES FOR THE MANUAL PROCESSING OF LOAN APPLICATIONS OF

DEPED BORROWERS UNDER THE DEPARTMENT’S PROGRAM ON

AUTOMATIC PAYROLL DEDUCTION SYSTEM (APDS)

1. The DepEd Borrower (hereinafter referred to as the “Borrower”) shall present

his/her latest available pay slip to the APDS accredited lending entity (hereinafter

referred to as the “Lender”) as part of his/her loan application.

2. The Lender shall evaluate the Borrower’s loan application using its own criteria,

including the Borrower’s capacity to pay based on the presented pay slip. The

presence of “Undeducted Obligations” in the Borrower’s pay slip indicates his/her

lack of capacity to pay the loan through the APDS, hence, such borrower is ineligible

to borrow under the APDS.

3. If the loan application passes the Lender’s evaluation, the Lender shall stamp the

following on the face of the pay slip without obscuring the pertinent details therein:

a.

b.

c.

d.

e.

f.

Corporate name of the Lender and APDS Code for lending;

Principal amount of the loan;

Term of the loan (first and final months of deduction);

Amount of monthly amortization;

Date of loan evaluation; and

Name and signature of Lender’s Loan Officer.

4. The Lender shall e-mail a scan of the stamped pay slip to the Borrower using the

e-mail subject, “Request for Confirmation of Evaluated APDS Loan- <Lender’s

APDS Code> - <Borrower’s complete name>”2 and return the stamped pay slip to

the Borrower.

5. The Borrower shall forward the e-mail received from the Lender to the

official/designated DepEd e-mail address of the concerned DepEd Verifier

(hereinafter referred to as “Verifier") using the Borrower’s official DepEd e-mail.

6. The Verifier shall record the details of the Borrower and of the loan evaluated by

the Lender that are pertinent to the assessment of the Borrower’s capacity to pay.

7. The Verifier shall determine if the stamped monthly amortization can be

accommodated in the APDS, cognizant of the Borrower’s eligibility to avail of loans

under the APDS, the NTHP rule, and the Borrower’s capacity to pay based on the

presented pay slip and the Verifier’s records. The Verifier, based on his/her

records, shall also check if the Borrower has approved obligations that are not yet

reflected in the latter’s stamped pay slip.

First-in first-served rule shall be strictly observed in the verification of loan

applications.

8. The Verifier, using the official/designated DepEd e-mail, shall e-mail the Lender,

copy furnished (“Cc”) the Borrower, either of the following messages depending

on the Verifier’s assessment:

2The

DepEd Office concerned may prescribe its own e-mail subject through official communications with the Lenders, copy

furnished the Office of the Undersecretary for Finance.

Page 10 of 26

CORRECTED COPY

a. If the monthly loan amortization can be accommodated in the APDS:

Please be informed that as validated in our records, the loan you evaluated can

be accommodated in the APDS:

Borrower’s Name

Employee No.

Station Code

Principal Amount of

Approved Loan

Amount of Monthly

Amortization

Any misrepresentation in the Borrower’s application verified by the Lender shall

not be the liability of the Verifier.

<Name of Verifier>

<Office>

b. If the monthly loan amortization cannot be accommodated in the APDS:

Please be informed that as validated in our records, the loan you evaluated

cannot be accommodated in the APDS for reasons stated below:

Borrower’s Name

Employee No.

Station Code

Principal Amount of

Approved Loan

Amount of Monthly

Amortization

Reason/s

e.g. Insufficient NTHP; With approved obligations that

are not yet reflected in the stamped pay slip

<Name of Verifier>

<Office>

9. Depending on the Verifier’s assessment, the Lender shall do either of the following

upon receipt of the former’s e-mail:

a. If the monthly loan amortization can be accommodated in the APDS: Approve

the loan and release the loan proceeds to the Borrower within thirty (30) days

from receipt of the Verifier’s confirmation and notify the Verifier of the release

of the loan proceeds through e-mail within 24 hours from the date of loan

release.

b. If the monthly loan amortization cannot be accommodated in the APDS: Inform

the Borrower that the loan cannot be granted under the APDS.

-- End --

Page 11 of 26

Encorder credit: Grasonline, aytoloya, ict-edu, fundanedu

CORRECTED COPY

PROCESS FLOW ON LOAN APPLICATIONS OF DEPED BORROWERS UNDER

THE DEPARTMENT’S PROGRAM ON AUTOMATIC PAYROLL DEDUCTION

SYSTEM (APDS) – VIA APPLICATION TO THE LENDER’S PHYSICAL OFFICE

Borrower

Lender

Verifier

1. Presents latest available pay

slip to Lender.

2. Evaluates Borrower’s loan

application, including capacity to

pay based on original pay slip

3. If the loan application passes

the evaluation, stamps loan

details on the pay slip and signs

thereon.

If not, informs the Borrower

accordingly.

4. E-mails a scan of the stamped

pay slip and returns its hard

copy to the Borrower.

5. Forwards the Lender’s e-

mail to the Verifier for

confirmation.

6. Records the details of the

Borrower and of the loan

evaluated by the Lender that

are pertinent to the

assessment of the Borrower’s

capacity to pay.

7. Determines if the stamped

monthly amortization can be

accommodated in the APDS.

8. E-mails assessment to the

Lender, copy furnished the

Borrower.

9. If the monthly loan amortization

can be accommodated in the

APDS: Approve the loan and

release the proceeds to the

Borrower within thirty (30)

days from receipt of the

Verifier’s confirmation and notify

the Verifier of the loan release

through e-mail within 24 hours

from the date of loan release.

If the monthly loan amortization

cannot be accommodated in the

APDS: Inform the Borrower that

the loan cannot be granted

under the APDS.

10. Every 3rd day of the current

month, furnish PSU & IU-SS with

list of loans verified per PLI

Page 12 of 26

CORRECTED COPY

ANNEX “B-2”

PROCEDURES FOR THE ONLINE PROCESS OF LOAN APPLICATIONS OF DEPED

BORROWERS UNDER THE DEPARTMENT’S PROGRAM ON AUTOMATIC PAYROLL

DEDUCTION SYSTEM (APDS)

1. The DepEd Borrower (hereinafter referred to as the “Borrower”), using the deped.gov.ph

email address shall:

a. Secure ONLINE Loan Application Form (LAF) from the APDS accredited lending entity

(hereinafter referred to as the “Lender”);

b. Accomplish LAF and submit the same to the Lender together with the latest available

pay slip; and

c. Wait for the response of the Lender through email, if he/she is eligible to be granted

loan or not. In case eligible, forward the Lender’s response to the official e-mail address

of designated DepEd Verifier (hereinafter referred to as “Verifier").

2. The Lender shall:

a. Perform background check on the legitimacy of the loan being applied for by the

Borrower to prevent occurrence of loans applied by fictitious borrowers;

b. Evaluate the Borrower’s loan application using the Lender’s own criteria, including the

Borrower’s capacity to pay based on the presented pay slip. The presence of

“Undeducted Obligations” in the Borrower’s pay slip indicates his/her lack of capacity to

pay the loan through the APDS, hence, such borrower is ineligible to borrow under the

APDS;

c. If the loan application passes the Lender’s evaluation, stamp the following on the face

of the pay slip without obscuring the pertinent details therein:

i.

ii.

iii.

iv.

v.

vi.

d.

Corporate name of the Lender and APDS Code for lending;

Principal amount of the loan;

Term of the loan (first and final months of deduction);

Amount of monthly amortization;

Date of loan evaluation; and

Name and signature of Lender’s Loan Officer;

E-mail a scan of the stamped pay slip to the Borrower using the e-mail subject, “Request

for Confirmation of Evaluated APDS Loan- <Lender’s APDS Code> - <Borrower’s

complete name>”3; and

e. Depending on the Verifier’s assessment, shall do either of the following upon receipt of

the former’s e-mail:

i.

If the monthly loan amortization can be accommodated in the APDS: 1) Approve the

loan and release the loan proceeds to the Borrower within thirty (30) days from

receipt of the Verifier’s confirmation; and 2) notify the Verifier of the release of the

loan proceeds through e-mail within 24 hours from the date of loan release.

ii.

If the monthly loan amortization cannot be accommodated in the APDS: Inform the

Borrower that the loan cannot be granted under the APDS.

3The

DepEd Office concerned may prescribe its own e-mail subject through official communications with the Lenders, copy

furnished the Office of the Undersecretary for Finance.

Page 13 of 26

CORRECTED COPY

3.

The Verifier shall:

a. Record the details of the Borrower and of the loan evaluated by the Lender that are

pertinent to the assessment of the Borrower’s capacity to pay;

b. Determine if the stamped monthly amortization can be accommodated in the APDS,

cognizant of the Borrower’s eligibility to avail of loans under the APDS, the NTHP rule,

and the Borrower’s capacity to pay based on the presented pay slip and the Verifier’s

records. The Verifier, based on his/her records, shall also check if the Borrower has

approved obligations that are not yet reflected in the latter’s stamped pay slip.

First-in first-served rule shall be strictly observed in the verification of loan applications;

c. Using the official/designated DepEd e-mail, shall e-mail the Lender, copy furnished (“cc”)

the Borrower, either of the following messages depending on the Verifier’s assessment:

i. If the monthly loan amortization can be accommodated in the APDS:

Please be informed that as validated in our records, the loan application you evaluated

can be accommodated in the APDS:

Borrower’s Name

Employee No.

Station Code

Principal Amount of

Approved Loan

Amount of Monthly

Amortization

Any misrepresentation in the Borrower’s application verified by the Lender shall not be

the liability of the Verifier.

<Name of Verifier>

<Office>

ii. If the monthly loan amortization cannot be accommodated in the APDS:

Please be informed that as validated in our records, the loan application you evaluated

cannot be accommodated in the APDS for reasons stated below:

Borrower’s Name

Employee No.

Station Code

Principal Amount of

Applied Loan

Amount of Monthly

Amortization

Reason/s

e.g. Insufficient NTHP; With approved obligations

that are not yet reflected in the stamped pay slip

<Name of Verifier>

<Office>

d. Every 3rd day of the current month, furnish the Payroll Services Unit (PSU) and/or

Implementing Unit-Secondary Schools (IU-SS) with list of verified loan amortizations per

PLI that can be accommodated in the payroll.

-- End --

Page 14 of 26

CORRECTED COPY

PROCESS FLOW ON LOAN APPLICATIONS OF DEPED BORROWERS UNDER THE

DEPARTMENT’S PROGRAM ON AUTOMATIC PAYROLL DEDUCTION SYSTEM

(APDS) – VIA ONLINE PROCESS

Borrower

Lender

Verifier

1. Using his/her deped.gov.ph

email address:

a. Secure ONLINE Loan

Application Form (LAF)

from the Lender; and

b. Accomplish LAF and email

the same, duly supported

with the latest available

pay slip to Lender.

2. Perform background check on legitimacy of

the loan

3. Evaluates Borrower’s loan application,

including capacity to pay based on pay slip

4. If the loan application passes the evaluation,

stamps loan details on the pay slip and signs

thereon.

If not, informs the Borrower accordingly.

5. E-mails a scan of the stamped pay slip to

the Borrower.

6. Forwards the Lender’s e-mail to

the Verifier for confirmation.

7. Records the details of the Borrower and of

the loan evaluated by the Lender that are

pertinent to the assessment of the

Borrower’s capacity to pay.

8. Determines if the stamped monthly

amortization can be accommodated in the

APDS.

9. E-mails assessment to the Lender, copy

furnished the Borrower.

10. If the monthly loan amortization can be

accommodated in the APDS: Approve the

loan and release the proceeds to the

Borrower within thirty (30) days from

receipt of the Verifier’s confirmation and

notify the Verifier of the loan release of

through e-mail within 24 hours from the

date of loan release.

If the monthly loan amortization cannot be

accommodated in the APDS: Inform the

Borrower that the loan cannot be granted

under the APDS.

11. Every 3rd day of the current month,

furnish PSU & IU-SS with list of loans

verified per PLI

Page 15 of 26

CORRECTED COPY

ANNEX “C-1”

PRESCRIBED TEMPLATES FOR AUTHORITY TO DEDUCT AND PROMISSORY NOTE

AUTHORITY TO DEDUCT

THROUGH THE DEPED AUTOMATIC PAYROLL DEDUCTION SYSTEM (APDS)

I hereby authorize DepEd to deduct monthly from my salary, through the DepEd APDS, the sum of

PESOS:_______________________________________________ (P___________), inclusive of principal and

interest, beginning on _______________ and ending on _______________, and to remit the same to N A M E

O F L E N D E R in consideration of the loan which was granted to me on ______________________. In case

my loan amortization is not deducted in the payroll, regardless of the reason, I also authorize

DepEd to automatically adjust the termination period in my pay slip by one (1) month for every

month of delay of its deduction.

The authorization is VALID AND BINDING within the aforementioned loan period, unless the loan is

pre-terminated, or the authorization is otherwise revoked. Moreover, I agree that deductions that will reduce

my monthly net take-home pay to lower than what is allowed under the law shall not be accommodated in the

APDS.

__________________________________________

Signature over Printed Name of DepEd Borrower

Employee Number:

Station Code:

Division Code:

Region:

Date: ___________________

PROMISSORY NOTE

For value received, the undersigned promises to pay through APDS to the NAME OF LENDER the sum of

PESOS:__________________________________ (P________) with interest rate of _____________ percent

(_____%) per annum, TO BE PAID IN EQUAL MONTHLY INSTALLMENTS, INCLUSIVE OF PRINCIPAL

AND INTEREST, IN THE AMOUNT OF P______________, BEGINNING ON _______________ AND

ENDING ON _______________, or until full payment.

Default in the payment for six (6) consecutive installments shall render the entire unpaid balance due and

demandable.

IN WITNESS WHEREOF, I have hereunto set my hand this ______ day of ______________ at

___________________.

______________________________________

(Signature over Printed Name of Borrower)

ID No. ___________________________

Employee No. _________

Division No._______

Station No._____

Date Issued _______________

School or Station Address: __________________________________ Place Issued

________________________

Telephone Number: ___________________

Home Address: ____________________________________________

Subscribed and sworn to before me, this _____ day of _____________ 20___, the affiant identified

as such person after presenting the following:

NAME

ID NO.

DATE AND PLACE ISSUED

NOTARY PUBLIC

Doc. No __________

Page No __________

Book No _________

Series of __________

Page 16 of 26

CORRECTED COPY

ANNEX “C-2”

PRESCRIBED TEMPLATE FOR DISCLOSURE STATEMENT

Page 17 of 26

Republic of the Philippines

Department of Education

ANNEX “D-1”

CORRECTED COPY

AUTOMATIC PAYROLL DEDUCTION SYSTEM (APDS) PROGRAM

EFFECTIVE INTEREST CALCULATION MODEL FOR A ONE (1)-YEAR LOAN

DECLINING/DIMINISHING BALANCE METHOD

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

A

B

Principal Amount (in PhP)

Loan Term (in years)

No. of installments (in months)

Grace period (in months)

No. of periods (in months)

Other Charges

Monthly Installment

C

100,000.00

1

12

12

6.000%

PhP 8,675.75

Installment

Period

0

1

2

3

4

5

6

7

8

9

10

11

12

Total

Principal

Gross Loan

D

Interest

100,000.00

8,050.75

8,101.07

8,151.70

8,202.65

8,253.91

8,305.50

8,357.41

8,409.64

8,462.20

8,515.09

8,568.31

8,621.77

100,000.00

625.00

574.68

524.05

473.10

421.84

370.25

318.34

266.11

213.55

160.66

107.44

53.89

4,108.91

Page 18 of 26

E

F

Contractual Interest Rate

Per Annum

Per Month

Nominal Interest Rate

Effective Interest Rate (EIR)

Per Annum

Per Month

Other

NET PROCEEDS

Charges

Cash Flows

6,000.00

94,000.00

(8,675.75)

(8,675.75)

(8,675.75)

(8,675.75)

(8,675.75)

(8,675.75)

(8,675.75)

(8,675.75)

(8,675.75)

(8,675.75)

(8,675.75)

(8,675.66)

6,000.00

G

= 7.500%

= 0.625%

= 4.109%

= 21.091%

= 1.608%

Outstanding

Balance

100,000.00

91,949.25

83,848.18

75,696.48

67,493.83

59,239.92

50,934.42

42,577.01

34,167.37

25,705.17

17,190.08

8,621.77

-

CORRECTED COPY

Republic of the Philippines

Department of Education

ANNEX ”D-2”

AUTOMATIC PAYROLL DEDUCTION SYSTEM (APDS) PROGRAM

EFFECTIVE INTEREST CALCULATION MODEL FOR A TWO (2)-YEAR LOAN

DECLINING/DIMINISHING BALANCE METHOD

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

A

B

Principal Amount (in PhP)

Loan Term (in years)

No. of installments (in months)

Grace period (in months)

No. of periods (in months)

Other Charges

Monthly Installment

C

100,000.00

2

24

24

6.000%

PhP 4,568.48

Installment

Period

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

Total

Principal

Gross Loan

D

Interest

100,000.00

3,818.48

3,847.12

3,875.97

3,905.04

3,934.33

3,963.84

3,993.57

4,023.52

4,053.69

4,084.10

4,114.73

4,145.59

4,176.68

4,208.00

4,239.56

4,271.36

4,303.40

4,335.67

4,368.19

4,400.95

4,433.96

4,467.21

4,500.72

4,534.32

100,000.00

750.00

721.36

692.51

663.44

634.15

604.64

574.91

544.96

514.79

484.38

453.75

422.89

391.80

360.48

328.92

297.12

265.08

232.81

200.29

167.53

134.52

101.27

67.76

34.01

9,643.37

Page 19 of 26

E

F

Contractual Interest Rate

Per Annum

Per Month

Nominal Interest Rate

Effective Interest Rate (EIR)

Per Annum

Per Month

Other

NET PROCEEDS

Charges

Cash Flows

6,000.00

94,000.00

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.48)

(4,568.33)

6,000.00

G

= 9.000%

= 0.750%

= 4.822%

= 16.351%

= 1.270%

Outstanding

Balance

100,000.00

96,181.52

92,334.40

88,458.43

84,553.39

80,619.06

76,655.22

72,661.65

68,638.13

64,584.44

60,500.34

56,385.61

52,240.02

48,063.34

43,855.34

39,615.78

35,344.42

31,041.02

26,705.35

22,337.16

17,936.21

13,502.25

9,035.04

4,534.32

-

CORRECTED COPY

ANNEX “D-3”

Republic of the Philippines

Department of Education

AUTOMATIC PAYROLL DEDUCTION SYSTEM (APDS) PROGRAM

EFFECTIVE INTEREST CALCULATION MODEL FOR A THREE (3)-YEAR LOAN

DECLINING/DIMINISHING BALANCE METHOD

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

A

B

Principal Amount (in PhP)

Loan Term (in years)

No. of installments (in months)

Grace period (in months)

No. of periods (in months)

Other Charges

Monthly Installment

C

100,000.00

3

36

36

6.000%

PhP 3,210.78

Installment

Period

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

Total

Principal

Gross Loan

D

Interest

100,000.00

2,405.78

2,425.15

2,444.67

2,464.35

2,484.19

2,504.18

2,524.34

2,544.66

2,565.15

2,585.80

2,606.61

2,627.60

2,648.75

2,670.07

2,691.57

2,713.23

2,735.07

2,757.09

2,779.29

2,801.66

2,824.21

2,846.95

2,869.87

2,892.97

2,916.26

2,939.73

2,963.40

2,987.25

3,011.30

3,035.54

3,059.98

3,084.61

3,109.44

3,134.47

3,159.70

3,185.11

100,000.00

805.00

785.63

766.11

746.43

726.59

706.60

686.44

666.12

645.63

624.98

604.17

583.18

562.03

540.71

519.21

497.55

475.71

453.69

431.49

409.12

386.57

363.83

340.91

317.81

294.52

271.05

247.38

223.53

199.48

175.24

150.80

126.17

101.34

76.31

51.08

25.64

15,588.05

Page 20 of 26

E

F

Contractual Interest Rate

Per Annum

Per Month

Nominal Interest Rate

Effective Interest Rate (EIR)

Per Annum

Per Month

Other

Charges

6,000.00

6,000.00

NET PROCEEDS

Cash Flows

94,000.00

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.78)

(3,210.75)

G

= 9.660%

= 0.805%

= 5.196%

= 14.886%

= 1.163%

Outstanding

Balance

100,000.00

97,594.22

95,169.07

92,724.40

90,260.05

87,775.86

85,271.68

82,747.34

80,202.68

77,637.53

75,051.73

72,445.12

69,817.52

67,168.77

64,498.70

61,807.13

59,093.90

56,358.83

53,601.74

50,822.45

48,020.79

45,196.58

42,349.63

39,479.76

36,586.79

33,670.53

30,730.80

27,767.40

24,780.15

21,768.85

18,733.31

15,673.33

12,588.72

9,479.28

6,344.81

3,185.11

-

CORRECTED COPY

ANNEX “E”

SAMPLE SWORN STATEMENT REGARDING THE LOAN DOCUMENTS SUBMITTED

AND FULL EXPLANATION OF THE TERMS AND CONDITIONS OF THE LOANS TO THE

BORROWERS.

[Date]

DR. ________________________

Regional Director

DepEd –Region ____________

____________________________

____________________________

SWORN CERTIFICATION

Sir/Madam:

As a/an <type of private entity> accredited under the Automatic Payroll Deduction System

(APDS) Program of the Department of Education, may we request for automatic payroll

deduction of the obligations obtained by the following DepEd personnel for the month of

_____________, 2021.

Name of Employee

1. __________________

2. __________________

Work Station

_______________________

_______________________

Date of Loan Release

___________________

___________________

In this regard, the Company hereby certifies the following:

1. Name of Entity and the DepEd borrowers have executed Authorities to Deduct, Promissory

Notes, and Disclosure Statements, and copies of the said documents were furnished to

the concerned DepEd borrowers;

2. The terms and conditions of the loan were properly discussed with the DepEd borrowers

and they have understood the same;

3. The loans granted herein were duly verified by the designated DepEd Verifier; and

4. That the proceeds of the loan, as appearing in the documents signed by the DepEd

borrowers, were actually released to and received by them in full as of the date of loan

release.

The company agrees that any falsity of the certification herein is a ground for the revocation

of the company’s accreditation in the DepEd APDS.

Very truly yours,

___________NAME___________

[Position/Official Designation]

SUBSCRIBED AND SWORN to this ____ day of ________________ by the affiant who is

personally known to me/identified by me as such persons after presenting his or her

<government issued ID>.

Doc No.

Page No.

Book No.

Series of 2021

Page 21 of 26

CORRECTED COPY

ANNEX “F”

PROCEDURES FOR THE ONLINE PROCESS ON THE SUBMISSION OF MONTHLY

BILLING STATEMENTS BY THE LENDER UNDER THE DEPARTMENT’S PROGRAM ON

APDS

A.

The Lender shall:

1. Consolidate all loan accounts granted to DepEd borrowers within a month, and prepare

monthly billing statement in accordance with the prescribed template provided by the

Payroll Services Units (PSU) and/or Implementing Unit-Secondary Schools (IU-SS). The

billing statement must be duly supported with pertinent documents, as shown below.

a.

For each loan applied by concerned DepEd borrowers:

i.

ii.

iii.

iv.

v.

vi.

b.

Processed Loan Application Form;

Authorization to Deduct (ATD);

Promissory Note (PN);

Disclosure Statement;

Amortization Schedule; and

Proof of loan release such as checks, loan vouchers (duly acknowledged by the

DepEd borrowers), credit memos, remittance lists and other proof of fund

transfer issued by the Lender.

Subscribed Sworn Certification stating that:

i.

The Lender and the DepEd borrowers have executed ATDs, PNs, and DS, and

copies of the said documents were furnished to the concerned DepEd borrowers;

ii.

The Lender properly discussed the terms and conditions of the loans with the

DepEd borrowers and they have understood the same;

iii. The loans granted herein were duly verified by the designated DepEd Verifier;

iv. The proceeds of the loan, as appearing in the documents signed by the DepEd

borrowers, were actually released to and received by them in full as of the date

of loan release; and

v.

The Lender agrees that any falsity of the certification herein is a ground for the

revocation of the company’s accreditation in the DepEd APDS.

2. Every 5th day of the month, submit through email the monthly billing statement/s for all

loans of DepEd borrowers granted within the previous month, together with the scanned

copies of the pertinent documents listed in Items 1 (a to b) above, to the official email

addresses of PSUs and/or IU-SSs (___@deped.gov.ph). Under no circumstance shall the

Lender bill a Borrower for loans not yet granted.

3.

Check and retrieve any returned billings through email from PSUs and/or IU-SSs, and resubmit the same as rectified, on or before the 10th day of the current month. Any billing

for new loans granted by the Lender that will reduce the minimum monthly

NTHP to an amount lower than what is allowed under the law shall not be

accommodated and shall be returned to the Lender.

4.

Provide copies of the billing statement to the concerned Schools Division Offices,

Attention: DepEd Verifiers, within ten (10) days after the submission of its final billing

statement to the PSUs and/or IU-SSs.

5.

Submit hard copies of signed billing statement (original copy) and the supporting

documents to the PSU and/or IU-SS.

Page 22 of 26

CORRECTED COPY

ANNEX “G”

PROVINCES/REGIONS WHERE THE LENDER HAS OFFICE/S AS VALIDATED BY DEPED

(Including affiliate offices, if any)

NAME OF ENTITY:

APDS CODE:

NAME OF

OFFICIAL

PROVINCIAL

CITY/

AUTHORIZED CONTACT

EMAIL

REGION LOCATION

MUNICIPALITY PERSONNEL NUMBER ADDRESS

I hereby certify that the said offices/branches can sufficiently render services such as, but not

limited to: maintaining complete records, accepting payments, issuance of statements of

accounts, official receipts, certificates of full payment, and contracts and membership

documents, all within specified timeframes, and attending to other transactions, queries, and

complaints of DepEd personnel.

(Signature)

Name of Authorized Representative

Designation

Page 23 of 26

CORRECTED COPY

ANNEX “H”

GROUNDS FOR SUSPENSION OR REVOCATION OF ACCREDITATION

(For Lending, Insurance Premia, or Membership Dues/Contributions, as Applicable)

Simple Grounds

Suspension, which involves the withholding of remittance for not less than one (1) month

but not more than six (6) months, and the corresponding non-acceptance of new business or

deduction billing for not less than one (1) month, shall be imposed upon repeated commission

of grounds classified as “Simple”.

“Simple grounds” are acts or omissions of an accredited entity in violation of the

guidelines on accreditation/re-accreditation or TCAA that can cause minor damage to DepEd

employees who are borrowers, policy holders or members of accredited entities.

Simple grounds include, but are not limited to, the following:

a. Billing more than one (1) loan per DepEd borrower.

b. Not furnishing the DepEd employee, or charging the borrower/DepEd fees for, copies

of the ATD, PN, DS, and/or amortization schedule in accordance with Annexes D-1 to

D-3, or copies of the Certificate of Membership, Policy Contract, and/or other

documents evidencing membership for insurance/mutual benefits/association duly

acknowledged by Employees.

c. Billing the co-maker, through APDS, for the loan balance of the principal borrower.

d. Computation of interest and non-interest charges on Loan not in accordance with the

guidelines, but the Effective Interest Rate is still within the specified ceiling.

e. Not reflecting the conditions on penalties and/or past due interest on loans, if any, in

the DS signed by DepEd borrowers.

f.

Refusal to accept tender payment of loan in advance, whether partially or in full,

during or after the term of the loan, from DepEd borrower/s or from other lending

institutions, in case of loan take-out/buy-out by the latter.

g. Non- or delayed issuance of the Official Receipt in case of partial or full payment.

h. Failure or delay in the issuance of a dated Certificate of Full Payment of Loan to the

DepEd borrower and/or failure to send a written request to the concerned payroll

servicing unit concerned for the immediate stoppage of deduction, in case of advance

payment of loan in full.

i.

Unrefunded over-deductions for the first time/payroll month.

j.

Failure to provide duly certified Statement of Account/Status of Premium Payments for

every loan/transaction granted to a DepEd borrower/member, free of charge, annually

and anytime upon request, within the day that the request was made by DepEd or the

DepEd borrower/member, duly supported by an up-to-date payment history.

k. Extending the termination date of loan amortization beyond what is stipulated in the

Authority to Deduct signed by DepEd borrowers, or beyond the period allowed by the

guidelines.

Page 24 of 26

CORRECTED COPY

l.

Charging fee for and/or delay or non-issuance of a Certificate of Full Payment of Loan

(CFPL).

m. Failure to inform DepEd Regional/Central Office of any transfer of office location for

purposes of updating Annex G of the TCAA.

n. Using the terms “DepEd” or “public school teacher” in promotions or in any form of

advertisement.

o. Submission of billing not in accordance with the prescribed timelines.

p. Charging and collecting interest for the remainder of the term of the loan in case of

advance payment in full of the loan.

q. Operating lending/insurance premia/mutual benefits business in a province without

prior authority from DepEd.

r. Maintaining an office that is not compliant with the requirements of the

guidelines/TCAA.

s. Non- or delayed submission of annual and semi-annual documentary requirements.

t. Accepting Automated Teller Machine (ATM) card as collateral from DepEd employees

for their loans under APDS.

u. Inclusion in the billing statement for lending business of mutual

aid

system/

insurance premia deductions, or compelling any DepEd borrower to take out any type

of insurance contract other than credit life insurance, as a condition to the loan

agreement.

v. Failure to submit the required documents within the period specified by the guidelines.

w. Deduction of advance payments from the loan proceeds of DepEd borrowers.

x. Other acts or omissions similar or analogous to the above.

Serious Grounds

The Accreditation shall be revoked upon commission of grounds classified as “Serious”.

When the Accreditation is revoked, the Accredited Entity shall no longer be allowed to grant

new business in the affected province/s under the APDS. However, collection of deductions

already incorporated in the APDS as of the date of revocation shall continue up to the

termination dates reflected in the pay slip. Thereafter, the APDS Code is automatically

cancelled.

“Serious grounds” are acts or omissions of an accredited entity in violation of the

guidelines on accreditation/re-accreditation or TCAA, which manifest fraud, bad faith, or willful

misrepresentation intended to obtain undue financial gain at the expense of a DepEd employee

who is a borrower, policy holder or member of accredited entities, or to undermine the

effectiveness of the APDS.

Serious grounds include, but are not limited to, the following:

a. Approval/release/billing of loans/insurance premium/membership

contributions without requisite approval by DepEd Verifier.

dues

or

b. Making false representation to the DepEd employee regarding the terms and

conditions of the loan/insurance premium/membership dues or contributions.

Page 25 of 26

CORRECTED COPY

c. Acceptance of blank Authority to Deduct (ATD), Promissory Note (PN), Disclosure

Statement, signed by the concerned DepEd borrowers.

d. Submission of false/fraudulent documents.

e. Inclusion of deductions not indicated in Annexes D1 – D3 (sample loan

computation)

f.

Computation of interest and non-interest rates on Loan not in accordance with the

guidelines and the Effective interest Rate exceeds the specified ceiling.

g. Billing of loans not yet granted, renewed or released to DepEd borrowers.

h. Entering into automatic payroll deduction agreements with fiscally autonomous

DepEd schools.

i.

Transfer, reassignment, and sale of deduction code.

j.

“Piggy-backing” (Accredited entities allowing the use of the APDS Code by nonaccredited entities).

k. Making malicious or defamatory imputation, threat and physical injury against

DepEd officials and/or personnel in relation to the implementation of the APDS.

l.

The Certificate of Registration/Authority of the entity is cancelled or terminated by

the IC, SEC, BSP or CDA.

m. Non-disclosure of the revocation or suspension of the Certificate

Registration/Authority by the concerned government regulatory bodies.

of

n. Repeated suspensions based on simple grounds, indicating refusal to comply with,

or wanton disregard for, APDS guidelines.

o. Other acts or omissions constituting fraud, bad faith, or willful misrepresentation

intended to obtain undue financial gain at the expense of a DepEd employee who

is a borrower, policy holder or member of accredited entities, or to undermine the

effectiveness of the APDS.

Page 26 of 26

CORRECTED COPY

TABLE OF CONTENTS FOR ENCLOSURE 3

Terms and Conditions of the APDS Accreditation (TCAA) for Insurance Premia and Membership

Dues/Contributions

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

Particulars

Page No.

Statement of Principles

Accreditation and Assignment of APDS Code

Processing of Applications for Insurance

Policy/Membership/Other Allowed Obligation

Billing of Insurance Premia and/or Membership

Dues/Contributions

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

2

3

4

4

4

5

5

6

7

8

8

ANNEXES FOR ENCLOSURE 3

Annex

Particulars

Page No.

A

Notarized Secretary’s Certificate supported by a Board Resolution authorizing the

Accredited Entity’s representative to execute this TCAA

c/o Entity

B

List of Sub-Codes, if any, and the corresponding products and/or services under

each Sub-Code, with proof of approval from their respective government

regulatory agencies

9

C-1

Procedures for the Manual Processing of Deped Employees’ Applications for

Insurance Premia and/or Membership Dues/Contributions with the Accredited

Entities under the Department’s Program on Automatic Payroll Deduction System

(APDS)

10

C-2

Procedures for the Online Process of DepEd Employees’ Applications for

Insurance Premia and/or Membership Dues/Contributions with the Accredited

Entities under the Department’s Program on Automatic Payroll Deduction System

(APDS) – (NEW ANNEX)

13

D

APDS Template/Standard Format of Authority to Deduct

16

E

Sworn Statement regarding the documents submitted and full explanation of the terms

and conditions to the Employees

17

F

Procedures for the Online Process on the Submission of Monthly Billing Statements

by the Accredited Entity Under the Department’s Program on APDS (NEW ANNEX)

18

G

Provinces/Regions where the Accredited has office/s as validated by DepEd

19

H

Grounds for Suspension or Revocation of Accreditation (For Lending, Insurance

Premia, or Membership Dues/Contributions, as Applicable)

20

CORRECTED COPY

(ENCLOSURE 3 TO DEPED ORDER NO. 20, S. 2021)

TERMS AND CONDITIONS OF THE APDS ACCREDITATION (TCAA)

FOR INSURANCE PREMIA AND MEMBERSHIP DUES/CONTRIBUTIONS

1.

2.

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

Full transparency in reporting operations and financial status as

evidenced by audited financial statements and appropriate disclosure

statements; and

1.2.2

Integrity of operations through proper and complete documentation

of insurance policies and/or memberships of 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 <number>, and the Sub-Codes1 listed in Annex “B”, if any, for

insurance premia and/or membership dues/contributions shall strictly be used for

the collection of such payments only2.

2.3

In case of issuance of a sub-code for policy loan, the rates of interest and other

charges shall not be higher than the prescribed ceiling set under paragraph 26,

Enclosure 1 of DepEd Order No. 20, s. 2021.

2.4

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 Accredited Entity changes its corporate name or effects other corporate

changes, the Accredited Entity shall furnish DepEd with duly certified copies of the

amended Articles of Incorporation/Cooperation [as applicable to the entity] and bylaws approved by the SEC/CDA [as applicable to the entity] to enable the DepEd to

update its records accordingly.

1

In case of multiple products and services, the Accredited Entity shall be issued a maximum of three (3) APDS Sub-Codes and

shall cease using the APDS Code (main code). Annex C contains the list of Sub-Codes issued.

2

The APDS Code and Sub-Codes (if any) issued in this TCAA shall not be used for deductions for any type of loan.

Page 1 of 22

CORRECTED COPY

3.

PROCESSING OF APPLICATIONS FOR INSURANCE POLICY/MEMBERSHIP/

OTHER ALLOWED OBLIGATION

3.1

For payment of insurance premia and/or membership dues/contributions intended

to be serviced through the APDS, the Accredited Entity shall process applications for

insurance policy/membership/other allowed obligation (hereinafter referred to as

“Application”) in accordance with the terms and conditions herein.

3.2

Processing of online digital applications may be allowed under APDS, provided

that DepEd is notified by the Accredited Entity in writing, duly supported with

information on its detailed procedures/mechanics and online process flow presented

to the DepEd Central Office APDS Task Force, and acknowledged/authorized by

DepEd prior to its implementation.

3.3

The Accredited Entity 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 application of DepEd personnel.

3.4

The Accredited Entity may approve an Application only upon issuance of a

certification by the DepEd Verifier, secured by the Accredited Entity through the

DepEd Employee (hereinafter referred to as “Employee”), stating that the monthly

payments can be accommodated within the threshold of the monthly NTHP as

required by the General Appropriations Act (GAA) at the time of approval of the

Application. Succeeding deductions shall conform to the monthly NTHP as provided

for by the GAA or other applicable laws at the time of the deduction.

3.5

The Accredited Entity shall follow the procedure on the approval of Applications as

contained in Annex “C-1 and C-2”.

3.6

The Accredited Entity shall accept 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].

3.7

The Accredited Entity shall ensure that every Application and/or transaction is fully

documented with a completely filled out Authority to Deduct (ATD), Certificate of

Membership, Policy Contract, and/or other documents evidencing insurance

coverage/membership. The ATD must be accomplished following the standard

form/template as contained in Annex “D”, and with consistent information. The

Accredited Entity shall furnish the Employee copies of these documents free of

charge, upon approval of the Application.

3.8

The Accredited Entity shall immediately notify the Employee upon approval of

his/her Application.

3.9

The Accredited Entity shall fully explain the terms and conditions of the insurance

policy/membership/other allowed obligation to the Employee. The Accredited Entity

shall submit a Sworn Statement to this effect together with its billing. (See Annex

“E”)

3.10 The Accredited Entity shall ensure that the venue of litigation in the event of legal

suit against the Employee or the Accredited Entity shall be within the location of the

Employee’s work station only.

Page 2 of 22

CORRECTED COPY

4.

BILLING OF INSURANCE PREMIA AND/OR MEMBERSHIP DUES/

CONTRIBUTIONS

4.1

The Accredited Entity shall consolidate all the insurance policies and/or memberships

approved within a month into one billing.

4.2

The Accredited Entity shall be responsible for submitting monthly billings to the PSU

and IU, and checking and retrieving any returned billings (refer to Annex F for the

procedure). Any billing for new insurance premia and/or membership

dues/contributions approved by the Accredited Entity that will reduce the monthly

minimum NTHP shall not be accommodated and shall be returned to the Accredited

Entity.

4.3

The Accredited Entity shall not bill new insurance premia and/or membership

dues/contributions if the Employee has existing Undeducted Obligations as reflected

in his/her pay slip.

4.4

For payments to be incorporated in the next payroll month, the Accredited Entity shall

submit billings for all Applications approved within the current month on or before

the 5th working day of the same month. Under no circumstance shall the Accredited

Entity bill an Employee for Applications and/or transactions not yet approved.

4.5

The Accredited Entity shall submit billing statement to DepEd in an electronic format

as agreed with the PSU and IU. The billing must be duly supported with soft copies

of the required ATD, Certificate of Membership, Policy Contract, and/or other

documents evidencing membership duly acknowledged by Employees, and Sworn

Statement mentioned in item 3.9 above. Only billings certified by DepEd Verifier that

such insurance premia or membership dues/contributions could be accommodated in

the payroll and with complete supporting documents shall be processed by the PSU.

The Accredited Entity may opt to submit billing statement via email (refer to Annex F

for the procedure) or direct to the PSU/IU secondary school’s office.

The APDS Accredited entity shall be solely responsible in case of misrepresentation

in the submission of the said supporting documents.

4.6

The Accredited Entity shall provide copies of the billings to the concerned Schools

Division Offices within ten (10) days after the submission of its billing to the DepEd.

4.7

The Accredited Entity shall not charge penalties/fines/surcharges due to delays of

payments as a result of any of the following:

4.7.1

4.7.2

4.7.3

4.7.4

4.7.5

Failure on the part of the Accredited Entity to pick up remittance checks;

Non-remittance due to suspension or revocation of Accreditation;

Failure of the DepEd to remit on time due to errors, inadvertence, force

majeure, or any extreme circumstance;

Non-existence of office or affiliate company in a particular province; and

Other reasons/causes similar or analogous to the above.

4.8

The Accredited Entity shall be responsible for collecting the outstanding balances of

its members outside APDS, in case of their retirement, resignation, or termination

of appointment.

4.9

In case of Employee’s transfer of work station to other region but the Accredited

Entity has no office/branch within the said region, for purposes of collection

only, the Accredited Entity may submit the corresponding billing to the concerned

PSU/IU. Such billing shall be supported with ATD signed by the Employee and other

requirements specified in item 4.5 above.

Page 3 of 22

CORRECTED COPY

5.

6.

OVER-THE-COUNTER PAYMENTS

5.1

The Accredited Entity shall not refuse to accept tender of payment made in advance

by Employees, whether partial or in full. Official receipt (OR) shall be issued on the

date of payment.

5.2

In case of full payment of dues by the Employee, the Accredited Entity shall

automatically include the Employee’s name in the list of insurance

premia/membership deductions for stoppage in the payroll and in the Deletion File

to be effected immediately in the next payroll month.

5.2

The Accredited Entity shall request the PSU and IU the monthly list of payroll

deductions that were stopped, and the corresponding supporting documents such

as the Employee’s request for stoppage.

OVER-DEDUCTION

6.1 In case of over-deductions, the Accredited Entity shall refund the corresponding

amount to the Employee concerned within thirty (30) days from knowledge or notice

thereof.

6.2 The Accredited Entity shall request DepEd for the adjustment of Service Fee in the

next payroll month, corresponding to the amount refunded on over-deductions. The

said request must be duly supported with proof of refund, duly acknowledged by the

Employee.

7.

REMITTANCE

7.1 The Accredited Entity shall pay DepEd a service fee of ____ percent (___%) of the

total monthly collection, which shall be automatically deducted from their collection

before remittance. [The rate shall be based on Title IV General Principles, Item 29,

of the Revised Guidelines on Accreditation/Re-Accreditation of Private Entities under

the APDS.]

7.2 The Accredited Entity shall issue an OR to DepEd within fifteen (15) days after

remittance of payments. Failure to do so will cause the suspension of the release of

succeeding remittances until the issuance of the OR. The Accredited Entity may

request DepEd to remit the payments through either of the following modes:

a. Through intra- or interbank fund transfer: The Accredited Entity shall coordinate

with the remitting DepEd office for the procedure in setting up the fund transfer.

The Accredited Entity shall shoulder the service charge, if any.

b. Through check: The Accredited Entity shall pick up the remittance check from

DepEd within the succeeding month after the deductions were effected in the

payroll. Otherwise, the preparation of succeeding checks will be suspended until

the prepared check is picked up. Any request for replacement of stale checks

shall be supported by written justification from the Accredited Entity.

7.3

Payments for insurance premia and/or membership dues/contributions shall be

refunded to the concerned Employees in case the corresponding remittance checks

become stale and not requested by the Accredited Entity for replacement after

notification by DepEd for three (3) times.

Page 4 of 22

CORRECTED COPY

8.

DOCUMENTARY REQUIREMENTS

8.1

The Accredited Entity shall ensure the issuance of a Statement of Account (SOA) to

an Employee, free of charge, annually and anytime upon request, preferably within

the day that the request was made by DepEd or by the Employee, but in no case

after more than three (3) days from such request. The SOA shall include an up-todate payment history.

8.2

The Accredited Entity shall submit through email or electronic medium (USB) and

other digital means the following documents, duly certified as true copies by the

concerned government regulatory agencies (i.e. SEC/CDA/IC) to the DepEd Central

Office (CO) annually, through the APDS Secretariat, on or before September 30,

except for business permit/s, the deadline for which is March 31 of the current year:

●

●

●

Audited Financial Statements for the previous year, duly filed and stamped

received by the BIR

Corporate income tax return for the previous year, duly filed and stamped

received by the BIR

Business Permit/s for the current year in the provinces where the Accredited

Entity has its office/s

[Additional documents as applicable to the entity:]

●

●

●

●

●

●

9.

SEC Certification that (i) the Accredited Entity has not been dissolved and (ii)

that the Commission has not received any derogatory information that would

prevent the entity from exercising its purpose/s as stated in its Articles of

Incorporation. The Certification shall cover a period of one year immediately

preceding its issuance.

General Information Sheet for the current year stamped received by the SEC

Certificate of Compliance issued by the CDA for the current year

Cooperative Annual Progress Report (CAPR) for the current year

PDIC Certificate of Good Standing covering the current year

IC Certificate of Authority covering the current year

OTHER CONDITIONS

9.1

The Accredited Entity shall not enter into any contract or agreement with DepEd

offices other than the CO/Regional Office (RO) regarding insurance premia and/or

membership dues/contributions under APDS.

9.2

The Accredited Entity shall limit its operation to provinces/regions where it has

office/s or affiliates companies. The office shall employ a full-time manager or

authorized personnel, and staff who shall maintain the complete records/documents,

accept payments, issue SOA, OR, and CFP, and attend to other transactions and any

queries/complaints of DepEd personnel. Annex “G”, which forms an integral part of

this TCAA, contains the provinces/region/s, including the location of its offices (main

and branches) and affiliate companies, if any, where the Accredited Entity is

authorized to operate.

9.3

In case of transfer of the Accredited Entity’s office/s to another location or site, the

Accredited Entity shall notify DepEd in writing regarding such transfer before the

closure of the existing office/s, and submit corresponding necessary documents, for

proper validation.

9.4

In case of change in contact number/s regardless if post-paid or registered mobile

number or landline telephone, the Accredited Entity shall notify/update DepEd

Page 5 of 22

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Central Office by submitting a Certification stating therein the changes on contact

number/s that will be officially used in transacting with DepEd employees.

9.5

The Accredited Entity shall make available to DepEd for inspection at any reasonable

time all ATDs, Certificates of Membership, Policy Contracts, and other related

documents in the course of periodic review.

9.6

In case of a merger or consolidation involving the Accredited Entity, the Accredited

Entity shall make sure that the surviving entity shall submit the following within three

(3) months upon their availability, in addition to the documents required for

accreditation:

●

●

●

Formal letter signifying their intention to maintain their APDS accreditation for

insurance premia and/or membership dues/contributions under the same

deduction code/s together with a board resolution or secretary's certificate;

Certified true copy of the Articles of Merger or Consolidation; and

Deed of Assignment, if any.

9.7

In case the Accredited Entity is put under Liquidation by the Insurance Commission

(IC), the DepEd shall coordinate with the IC as to how the deductions for insurance

premia and/or membership dues/contributions will be stopped in the payroll.

9.8

The Accredited Entity shall not use the name of DepEd or the term “public school

teacher” in its promotions or in any form of advertisement.

10. NECESSARY ATTACHMENTS

10.1 This TCAA shall include as integral parts the following attachments:

10.1.1 Annex “A” – Notarized Secretary’s Certificate supported by a Board

Resolution authorizing the Accredited Entity’s representative to execute this

TCAA.

10.1.2 Annex “B” – List of Sub-Codes, if any, and the corresponding products

and/or services under each Sub-Code, with proof of approval from their

respective government regulatory agencies to offer such products and/or

services as required in paragraph 31.1.5.e of the Revised Guidelines on

Accreditation/Re-Accreditation of Private Entities under the APDS.

10.1.3 Annex “C-1 and C-2” - Procedures for the Processing of DepEd Employees’

Applications for Insurance Premia and/or Membership Dues/Contributions

with the Accredited Entities Under the Department’s APDS (on-site/manual

and on-line process, respectively).

10.1.4 Annex “D” – APDS Template/Standard Format of Authority to Deduct.

10.1.5 Annex “E” – Sworn Statement regarding the documents submitted and full

explanation of the terms and conditions to the Employees.

10.1.6 Annex “F” – Procedures for the Online Process on the Submission of

Monthly Billing Statements by the Accredited Entity Under the Department’s

Program on APDS

10.1.7 Annex “G” – Provinces/Regions where the Accredited has office/s as

validated by DepEd, with the main office per region identified, indicating

Page 6 of 22

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therein the address/es, official contact numbers, and the name/s of

manager/s and contact person/s

10.1.8 Annex “H” – Grounds for Suspension or Revocation of Accreditation

11. GROUNDS FOR SUSPENSION OR REVOCATION

11.1 The Accredited Entity agrees that its Accreditation may be suspended or revoked by

DepEd based on grounds enumerated in Annex “H”.

11.2 Suspension, which involves the withholding of remittance for not less than one (1)

month but not more than six (6) months, and the corresponding non-acceptance of

new business or deduction billing for not less than one (1) month, shall be imposed

upon repeated commission of grounds classified as “Simple”.

11.3 The Accreditation shall be revoked upon commission of grounds classified as

“Serious”. When the Accreditation is revoked, the Accredited Entity shall no longer

be allowed to grant new business in the affected provinces/regions under the APDS.

However, collection of deductions already incorporated in the APDS as of the date

of revocation shall continue for the next three (3) months or until requested for

stoppage by the concerned Employees, whichever comes earlier. Within sixty (60)

calendar days from the said revocation, DepEd shall notify the concerned Employees

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.

11.4 Any suspension or revocation imposed upon a particular office shall likewise be

considered as sanction against all its other offices within the same region. If imposed

on the Head Office, the same shall be imposed upon all its other offices in the

national level.

11.5 Any complaint for the commission of any of the grounds for suspension or revocation

should be made in writing. For the purposes of a formal investigation, the complaint

must:

● Contain the names and addresses of the complainant/s;

● Contain the entity or person subject of the complaint;

● Contain the acts or omissions complained of constituting the infraction, based on

the personal knowledge of the complainant;

● Be accompanied with supporting documents, as needed; and

● Be notarized.

However, DepEd shall not be precluded from conducting an investigation/fact-finding

on the basis of other information received or discovered.

11.6 Any complaint for the commission of any of the grounds for suspension or revocation

should be made in writing and sufficient in form and substance. For the purposes of

a formal investigation, the complaint must:

● Contain the names and addresses of the complainant/s;

● Contain the entity or person subject of the complaint;

● Contain the acts or omissions complained of constituting the infraction, based on

the personal knowledge of the complainant;

● Be accompanied with supporting documents, as needed; and

● Be notarized.

Page 7 of 22

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However, DepEd shall not be precluded from conducting an investigation/fact-finding

on the basis of other information received or discovered.

11.7 Commission of grounds for suspension or revocation shall be validated by the

appropriate committee or task force designated by the Secretary. The APDS Task

Forces in the CO and ROs may impose the suspension or revocation as a result of

its investigation. The suspension or revocation may be appealed to the Office of the

Secretary, through the Office of the Undersecretary for Finance, within a period of

fifteen (15) days from notice. Pending the resolution by the Office of the Secretary,

the suspension or revocation shall be held in abeyance. The suspension or revocation

imposed by the APDS Task Force shall be reported to the Secretary, through the

Undersecretary for Finance, for monitoring and records purposes.

12. EFFECTIVITY OF THE TCAA

12.1 This TCAA shall be valid upon signing and notarization, and shall be effective until

December 31, 2025.

12.2 For purposes of renewal of this 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.

13. FINAL PROVISIONS

13.1 This TCAA, its annexes, and pertinent DepEd issuances shall be the governing

documents with reference to the inclusion of the Accredited Entity in the APDS.

13.2 The Accredited Entity shall conform to any APDS policy subsequently issued by

DepEd in the form of DepEd Order, Memorandum, or other issuance. Any provision

in this TCAA affected by such subsequent APDS policy is deemed automatically

modified or repealed as applicable.

CONFORME:

ACKNOWLEDGEMENT

Page 8 of 22

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ANNEX “B”

LIST OF SUB-CODES WITH CORRESPONDING PRODUCTS AND/OR SERVICES

UNDER EACH SUB-CODE

NAME OF ENTITY: ____________________________

APDS CODE

: __________

APDS SUB-CODE

PRODUCTS AND/OR

SERVICES

____- A

____- B

____- C

CERTIFIED CORRECT:

______________________

Authorized Representative

Page 9 of 22

DATE APPROVED BY

IC/CDA/SEC

CORRECTED COPY

ANNEX “C-1”

PROCEDURES FOR THE MANUAL PROCESSING OF DEPED EMPLOYEES’

APPLICATIONS

FOR

INSURANCE

PREMIA

AND/OR

MEMBERSHIP

DUES/CONTRIBUTIONS WITH THE ACCREDITED ENTITIES UNDER THE

DEPARTMENT’S PROGRAM ON AUTOMATIC PAYROLL DEDUCTION SYSTEM

(APDS)

1. The DepEd Employee (hereinafter referred to as the “Employee”) accomplishes

application for insurance policy/membership/ other allowed obligation (hereinafter

referred to as “Application”) provided by the APDS accredited entity (hereinafter

referred to as the “Accredited Entity”.

2. The Employee submits the Application together with his/her latest available pay slip

to the Accredited Entity as part of his/her Application.

3. The Accredited Entity shall evaluate the Employee’s Application using its own criteria,

including the Employee’s capacity to pay based on the presented pay slip. The presence

of “Undeducted Obligations” in the Employee’s pay slip indicates his/her lack of capacity

to pay through the APDS, hence, the Application of such employee shall not be

approved by the Accredited Entity under the APDS.

4. If the Application passes the Accredited Entity’s evaluation, the Accredited Entity

shall stamp the following on the face of the pay slip without obscuring the pertinent

details therein:

a. Corporate name of the Accredited Entity and APDS Code/Sub-Code for insurance premia

and/or membership dues/contributions;

b. Amount of monthly salary deduction;

c. Date of evaluation; and

d. Name of Accredited Entity’s Officer, who shall sign on the stamp to signify evaluation.

5. The Accredited Entity shall e-mail a scan of the stamped pay slip to the Employee

using the e-mail subject, “Request for Confirmation of Evaluated APDS Application<Accredited Entity’s APDS Code> - <Employee’s complete name>”3 and return the

stamped pay slip to the Employee.

6. The Employee shall forward the e-mail received from the Accredited Entity to the

official/designated DepEd e-mail address of the concerned DepEd Verifier (hereinafter

referred to as “Verifier") using the Employee’s official DepEd e-mail.

7. The Verifier shall record the details of the Employee and of the Application evaluated

by the Accredited Entity that are pertinent to the assessment of the Employee’s capacity

to pay.

8. The Verifier shall determine if the stamped monthly deduction can be accommodated

in the APDS, cognizant of the Employee’s eligibility to avail of insurance

policy/membership/other allowed obligation under the APDS, the NTHP rule, and the

Employee’s capacity to pay based on the presented pay slip and the Verifier’s records.

The Verifier, based on his/her records, shall also check if the Employee has approved

obligations that are not yet reflected in the latter’s stamped pay slip.

3

The DepEd Office concerned may prescribe its own e-mail subject through official communications with the Accredited Entities,

copy furnished the Office of the Undersecretary for Finance.

Page 10 of 22

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First-in first-served rule shall be strictly observed in the verification of Applications.

9. The Verifier, using the official/designated DepEd e-mail, shall e-mail the Accredited

Entity, copy furnished (“cc”) the Employee, either of the following messages depending

on the Verifier’s assessment:

a. If the monthly deduction can be accommodated in the APDS:

Please be informed that as validated in our records, the application of DepEd employee you

evaluated can be accommodated in the APDS, as follows:

Employee’s Name

Employee No.

Station Code

Amount of Monthly

Membership

Dues/Contribution

Any misrepresentation in the Employee’s Application verified by the Accredited Entity shall not be

the liability of the Verifier.

<Name of Verifier>

<Office>

b. If the monthly deduction cannot be accommodated in the APDS:

Please be informed that as validated in our records, the application of DepEd employee you

evaluated cannot be accommodated in the APDS for reasons stated below.

Employee’s Name

Employee No.

Station Code

Amount of Monthly

Membership

Dues/Contribution

Reason/s

e.g. Insufficient NTHP; With approved obligations

that are not yet reflected in the stamped pay slip

<Name of Verifier>

<Office>

10. Depending on the Verifier’s assessment, the Accredited Entity shall do either of

the following upon receipt of the former’s e-mail:

a. If the monthly deduction can be accommodated in the APDS: Approve the

Application and execute the next steps necessary to complete the

transaction/contract within thirty (30) days from receipt of the Verifier’s

confirmation and notify the Verifier of such action/s through e-mail within 24 hours.

b. If the monthly deduction cannot be accommodated in the APDS: Inform the

Employee that the Application cannot be granted under the APDS.

11. Every 3rd day of the current month, furnish the Payroll Services Unit (PSU) and/or

Implementing Unit-Secondary Schools (IU-SS) with list of verified insurance

premia/membership dues/contributions per Accredited Entity that can be

accommodated in the payroll.

-- End -Page 11 of 22

CORRECTED COPY

PROCESS FLOW FOR THE PROCEDURES ON MANUAL PROCESSING OF DEPED EMPLOYEES’

APPLICATIONS FOR INSURANCE PREMIA AND/OR MEMBERSHIP DUES/CONTRIBUTIONS

WITH THE ACCREDITED ENTITIES UNDER THE DEPARTMENT’S PROGRAM ON APDS

Employee

Accredited Entity

Verifier

1. Accomplishes Application for

Membership

2. Submits the Application for

Membership, duly supported

with the latest available pay

slip to Accredited Entity.

3. Evaluates Employee’s Application,

including capacity to pay based on pay

slip

4. If the Application passes the evaluation,

stamps details on the pay slip and signs

thereon.

If

not,

informs

accordingly.

the

Employee

5. E-mails a scan of the stamped pay slip

and returns its hard copy to the

Employee.

6. Forwards the Accredited

Entity’s e-mail to the Verifier

for confirmation.

7. Records the details of the

Employee and of the Application

evaluated by the Accredited Entity

that are pertinent to the

assessment of the Employee’s

capacity to pay.

8. Determines if the stamped monthly

amortization can be accommodated

in the APDS.

9. E-mails assessment to the

Accredited Entity, copy furnished

the Employee.

10. If the monthly deduction can be

accommodated in the APDS:

Approves the Application and

execute the next steps necessary to

complete the transaction/contract

within thirty (30) days from receipt

of the Verifier’s confirmation and

notify the Verifier of such action/s

through e-mail within 24 hours.

If the monthly deduction cannot be

accommodated in the APDS: Inform the

Employee that the Application cannot

be granted under the APDS.

11. Every 3rd day of the current month,

furnish the PSU and/or IU-SS with

list of verified applications per

Accredited Entity that can be

accommodated in the payroll.

Page 12 of 22

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ANNEX “C-2”

PROCEDURES FOR THE ONLINE PROCESS OF DEPED EMPLOYEES’ APPLICATIONS FOR

INSURANCE PREMIA AND/OR MEMBERSHIP DUES/CONTRIBUTIONS WITH THE

ACCREDITED ENTITIES UNDER THE DEPARTMENT’S PROGRAM ON AUTOMATIC

PAYROLL DEDUCTION SYSTEM (APDS)

1. The DepEd Employee (hereinafter referred to as the “Employee”), using the deped.gov.ph

email address shall:

a. Secure an ONLINE Application Form from the APDS accredited entity (hereinafter referred

to as the “Accredited Entity”);

b. Accomplish the Application Form and submit the same to the Accredited Entity together

with the latest available pay slip; and

c. Wait for the response of the Accredited Entity through email, if he/she is eligible or not. In

case eligible, forward the Accredited Entity’s response to the official e-mail address of

designated DepEd Verifier (hereinafter referred to as “Verifier").

2. The Accredited Entity shall:

a. Perform background checks on the legitimacy of the membership being applied for by the

Employee to prevent occurrence of application for membership by fictitious Employees;

b. Evaluate the Employee’s application for membership using the Accredited Entity’s own

criteria, including the Employee’s capacity to pay based on the presented pay slip. The

presence of “Undeducted Obligations” in the Employee’s pay slip indicates his/her lack of

capacity to pay the insurance premia and/or membership dues/contributions through the

APDS, hence, such employee is ineligible to become the Accredited Entity’s member under

the APDS;

c. If the membership application passes the Accredited Entity’s evaluation, stamp the

following on the face of the pay slip without obscuring the pertinent details therein:

i.

ii.

iii.

iv.

d.

Corporate name of the Accredited Entity and APDS Code/Sub-Code for insurance

premia and/or membership dues/contributions;

Amount of monthly salary deduction;

Date of application for membership; and

Name of Accredited Entity’s Officer who shall sign on the stamp to signify evaluation;

E-mail a scan of the stamped pay slip to the Employee using the e-mail subject, “Request

for Confirmation of Evaluated APDS Application- <Accredited Entity’s APDS Code> <Employee’s complete name>”; and

e. Depending on the Verifier’s assessment, do either of the following upon receipt of the

former’s e-mail:

i.

If the monthly deduction can be accommodated in the APDS: 1) Approve the

Application and execute the next steps necessary to complete the transaction/contract

within thirty (30) days from receipt of the Verifier’s confirmation and notify the Verifier

of such action/s through e-mail within 24 hours.

ii.

If the monthly deduction cannot be accommodated in the APDS: Inform the Employee

that the application cannot be granted under the APDS.

Page 13 of 22

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3.

The Verifier shall:

a. Record the details of the Employee and of the application evaluated by the Accredited Entity

that are pertinent to the assessment of the Employee’s capacity to pay;

b. Determine if the stamped monthly amortization can be accommodated in the APDS,

cognizant of the Employee’s eligibility to avail of insurance policy/membership/other

allowed obligation under the APDS, the NTHP rule, and the Employee’s capacity to pay

based on the presented pay slip and the Verifier’s records. The Verifier, based on his/her

records, shall also check if the Employee has approved obligations that are not yet reflected

in the latter’s stamped pay slip.

First-in first-served rule shall be strictly observed in the verification of applications;

c.

E-mail the Accredited Entity using the official/designated DepEd e-mail, copy furnished

(“cc”) the Employee, either of the following messages depending on the Verifier’s

assessment:

i.

If the monthly deduction can be accommodated in the APDS:

Please be informed that as validated in our records, the application of DepEd

Employee you evaluated can be accommodated in the APDS, as follows:

Employee’s Name

Employee No.

Station Code

Amount of Monthly Membership

Dues/Contribution

Any misrepresentation in the Employee’s application verified by the Accredited Entity

shall not be the liability of the Verifier.

<Name of Verifier>

<Office>

ii.

If the monthly deduction cannot be accommodated in the APDS:

Please be informed that as validated in our records, the application of DepEd Employee

you evaluated cannot be accommodated in the APDS for reasons stated below:

Employee’s Name

Employee No.

Station Code

Amount of Monthly Membership

Dues/Contribution

Reason/s

e.g. Insufficient NTHP; With approved

obligations that are not yet reflected in

the stamped pay slip

<Name of Verifier>

<Office>

d. Every 3rd day of the current month, furnish the Payroll Services Unit (PSU) and/or

Implementing Unit-Secondary Schools (IU-SS) with list of verified insurance

premia/membership contributions per Accredited Entity that can be accommodated in the

payroll every 3rd day of the current month

-- End -Page 14 of 22

CORRECTED COPY

PROCESS FLOW FOR THE ONLINE PROCEDURES ON DEPED EMPLOYEES’ APPLICATIONS

FOR INSURANCE PREMIA AND/OR MEMBERSHIP DUES/CONTRIBUTIONS WITH THE

ACCREDITED ENTITIES UNDER THE DEPARTMENT’S PROGRAM ON AUTOMATIC PAYROLL

DEDUCTION SYSTEM (APDS)

Employee

1.

Accomplishes Online Application

for Membership

2.

Submits the Application for

Membership, duly supported

with the latest available pay slip

to Accredited Entity.

Accredited Entity

Verifier

3. Evaluates Employee’s Application,

including capacity to pay based on pay

slip

4. If the Application passes the

evaluation, stamps details on the pay

slip and signs thereon.

If not, informs the Employee

accordingly.

5. E-mails a scan of the stamped pay slip

to the Employee.

6. Forwards the Accredited Entity’s

e-mail to the Verifier for

confirmation.

7. Records the details of the

Employee and of the Application

evaluated by the Accredited Entity

that are pertinent to the

assessment of the Employee’s

capacity to pay.

8. Determines if the stamped

monthly amortization can be

accommodated in the APDS.

9. E-mails assessment to the

Accredited Entity, copy furnished

the Employee.

10. If the monthly deduction can be

accommodated in the APDS:

Approves the Application and

execute the next steps necessary to

complete the transaction/contract

within thirty (30) days from receipt

of the Verifier’s confirmation and

notify the Verifier of such action/s

through e-mail within 24 hours.

If the monthly deduction cannot be

accommodated in the APDS: Inform

the Employee that the Application

cannot be granted under the APDS.

11. Every 3rd day of the current month,

furnish the PSU and/or IU-SS with

list of verified applications per

Accredited Entity that can be

accommodated in the payroll.

Page 15 of 22

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ANNEX “D”

APDS Template/Standard Format of Authority to Deduct

AUTHORITY TO DEDUCT

THROUGH THE DEPED AUTOMATIC PAYROLL DEDUCTION SYSTEM (APDS)

I hereby authorize DepEd to deduct monthly from my salary, through the DepEd

APDS, the sum of PESOS:_______________________________________________

(P___________) beginning on _______________ and ending on _______________, as

premium/contribution/due, and to remit the same to NAME OF ACCREDITED ENTITY in

consideration of the insurance policy/membership/other allowed obligation, more

specifically described as _______________________________. In case my premium

contribution is not deducted from the payroll, regardless of the reason, I also authorize

DepEd to automatically adjust the termination period in my pay slip by one (1) month for

every month of delay of its deduction. I fully understand that no lapses of payment shall

be made by the Accredited Entity for this purpose, thus, the corresponding benefit as

contracted shall be available in case of need.

The authorization is VALID AND BINDING within the aforementioned period,

unless the authorization is otherwise revoked. Moreover, I agree that deductions that will

reduce my monthly net take-home pay to lower than what is allowed under the law shall

not be accommodated in the APDS.

___________________________________________

Signature over Printed Name of DepEd Employee

Employee Number:

Station Code:

Division Code:

Region:

Date: ___________________

Page 16 of 22

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ANNEX “E”

Sworn Statement regarding the documents submitted and full explanation of the

terms and conditions to the Employees.

[Date]

DR. ________________________

Regional Director

DepEd –Region ____________

____________________________

____________________________

SWORN CERTIFICATION

Sir/Madam:

As a/an <type of private entity> accredited under the Automatic Payroll Deduction System (APDS) Program

of the Department of Education, may we request for automatic payroll deduction of the obligations

obtained by the following DepEd personnel for the month of _____________, 2021.

Name of Employee

1. ___________________

2. ___________________

Work Station

_______________________

_______________________

Date of Application

_______________________

_______________________

In this regard, the Company hereby certifies the following:

1. Name of Entity and the DepEd personnel have executed Authorities to Deduct and Policy Contracts and/or

Certificates of Membership, and copies of the said documents were furnished to the concerned DepEd

personnel;

2. The insurance premia and/or membership dues/contributions of new DepEd members were duly verified

by the designated DepEd Verifier; and

3. The terms and conditions were properly discussed with the DepEd personnel and they have understood

the same.

The company agrees that any falsity of the certification herein is a ground for the revocation of the

company’s accreditation in the DepEd APDS.

Very truly yours,

___________NAME___________

[Position/Official Designation]

SUBSCRIBED AND SWORN to this ____ day of ________________ by the affiant who is personally

known to me/identified by me as such persons after presenting his or her <government issued ID>.

Doc No.

Page No.

Book No.

Series of 2021

Page 17 of 22

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ANNEX “F”

Procedures for the Online Process on the Submission of Monthly Billing

Statements by the Accredited Entity Under the Department’s Program on APDS

A.

The Accredited Entity shall:

1. Consolidate all Applications for Membership of DepEd Employees within a month, and

prepare monthly billing statement in accordance with the prescribed template provided by

the Payroll Services Units (PSU) and/or Implementing Unit-Secondary Schools (IU-SS). The

billing statement must be duly supported with pertinent documents of DepEd Employees,

as shown below.

a.

As provided by DepEd Employees:

i.

ii.

iii.

iv.

b.

Accomplished Application for Membership Form

Authorization to Deduct (ATD);

Government Issued ID; and

Latest available pay slip.

Subscribed Sworn Certification stating that:

i.

Name of Entity and the DepEd personnel have executed Authorities to Deduct

and Policy Contracts and/or Certificates of Membership, and copies of the said

documents were furnished to the concerned DepEd personnel;

ii.

The insurance premia and/or membership dues/contributions of new DepEd

members were duly verified by the designated DepEd Verifier; and

iii.

The terms and conditions were properly discussed with the DepEd personnel

and they have understood the same.

2. Every 5th day of the month, submit through email the monthly billing statement/s for

all applications for membership of DepEd Employees granted within the previous month,

together with the scanned copies of the pertinent documents listed in Items 1 (a to b)

above, to the official email addresses of PSUs and/or IU-SSs (___@deped.gov.ph). Under

no circumstance shall the Accredited Entity bill a DepEd Employee for applications not

verified by the DepEd Verifier.

3.

Check and retrieve any returned billings through email from PSUs and/or IU-SSs, and resubmit the same as rectified, on or before the 10th day of the current month. Any

billing for new Applications for Membership approved by the Accredited Entity,

but has not been approved by the Verifier shall not be accommodated, and shall be

returned to the Accredited Entity.

4.

Provide copies of the billing statement to the concerned Schools Division Offices,

Attention: DepEd Verifiers, within ten (10) days after the submission of its final billing

statement to the PSUs and/or IU-SSs.

5. Submit hard copies of signed billing statement (original copy) and the supporting

documents to the PSU and/or IU-SS.

Page 18 of 22

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ANNEX “G”

PROVINCES/REGIONS WHERE THE ACCREDITED ENTITY HAS OFFICE/S AS

VALIDATED BY DEPED (Including affiliate offices, if any)

NAME OF ENTITY:

APDS CODE:

REGION

PROVINCIAL

LOCATION

CITY/

MUNICIPALITY

COMPLETE

ADDRESS

NAME OF

AUTHORIZED

PERSONNEL

CONTACT

NUMBER

EMAIL

ADDRESS

I hereby certify that the said offices/branches can sufficiently render services such as, but not

limited to: maintaining complete records, accepting payments, issuance of statements of accounts,

official receipts, certificates of full payment, and contracts and membership documents, all within

specified timeframes, and attending to other transactions, queries, and complaints of DepEd

personnel

(Signature)

Name of Authorized Representative

Designation

Page 19 of 22

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ANNEX “H”

GROUNDS FOR SUSPENSION OR REVOCATION OF ACCREDITATION

(For Lending, Insurance Premia, or Membership Dues/Contributions, as Applicable)

Simple Grounds

Suspension, which involves the withholding of remittance for not less than one (1) month

but not more than six (6) months, and the corresponding non-acceptance of new business or

deduction billing for not less than one (1) month, shall be imposed upon repeated commission of

grounds classified as “Simple”.

“Simple grounds” are acts or omissions of an accredited entity in violation of the guidelines

on accreditation/re-accreditation or TCAA that can cause minor damage to DepEd employees who

are borrowers, policy holders or members of accredited entities.

Simple grounds include, but are not limited to, the following:

a. Billing more than one (1) loan per DepEd borrower.

b. Not furnishing the DepEd employee, or charging the borrower/DepEd fees for, copies of

the ATD, PN, DS, and/or amortization schedule in accordance with Annexes D-1 to D-3, or

copies of the Certificate of Membership, Policy Contract, and/or other documents

evidencing membership for insurance/mutual benefits/association duly acknowledged by

Employees.

c. Billing the co-maker, through APDS, for the loan balance of the principal borrower.

d. Computation of interest and non-interest charges on Loan not in accordance with the

guidelines, but the Effective Interest Rate is still within the specified ceiling.

e. Not reflecting the conditions on penalties and/or past due interest on loans, if any, in the

DS signed by DepEd borrowers.

f.

Refusal to accept tender payment of loan in advance, whether partially or in full, during

or after the term of the loan, from DepEd borrower/s or from other lending institutions, in

case of loan take-out/buy-out by the latter.

g. Non- or delayed issuance of the Official Receipt in case of partial or full

payment.

h. Failure or delay in the issuance of a dated Certificate of Full Payment of Loan to the DepEd

borrower and/or failure to send a written request to the concerned payroll servicing unit

concerned for the immediate stoppage of deduction, in case of advance payment of loan

in full.

i.Unrefunded over-deductions for the first time/payroll month.

j.Failure to provide duly certified Statement of Account/Status of Premium Payments for

every loan/transaction granted to a DepEd borrower/member, free of charge, annually and

anytime upon request, within the day that the request was made by DepEd or the DepEd

borrower/member, duly supported by an up-to-date payment history.

k. Extending the termination date of loan amortization beyond what is stipulated in the

Authority to Deduct signed by DepEd borrowers, or beyond the period allowed by the

guidelines.

l.

Charging fee for and/or delay or non-issuance of a Certificate of Full Payment of Loan

(CFPL).

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m. Failure to inform DepEd Regional/Central Office of any transfer of office location for

purposes of updating Annex G of the TCAA.

n. Using the terms “DepEd” or “public school teacher” in promotions or in any form of

advertisement.

o. Submission of billing not in accordance with the prescribed timelines.

p. Charging and collecting interest for the remainder of the term of the loan in case of advance

payment in full of the loan.

q. Operating lending/insurance premia/mutual benefits business in a province without prior

authority from DepEd.

r. Maintaining an office that is not compliant with the requirements of the guidelines/TCAA.

s. Non- or delayed submission of annual and semi-annual documentary requirements.

t. Accepting Automated Teller Machine (ATM) card as collateral from DepEd employees for

their loans under APDS.

u. Inclusion in the billing statement for lending business of mutual aid system/ insurance

premia deductions, or compelling any DepEd borrower to take out any type of insurance

contract other than credit life insurance, as a condition to the loan agreement.

v. Failure to submit the required documents within the period specified by the guidelines.

w. Deduction of advance payments from the loan proceeds of DepEd borrowers.

x. Other acts or omissions similar or analogous to the above.

Serious Grounds

The Accreditation shall be revoked upon commission of grounds classified as “Serious”.

When the Accreditation is revoked, the Accredited Entity shall no longer be allowed to grant new

business in the affected province/s under the APDS. However, collection of deductions already

incorporated in the APDS as of the date of revocation shall continue up to the termination dates

reflected in the pay slip. Thereafter, the APDS Code is automatically cancelled.

“Serious grounds” are acts or omissions of an accredited entity in violation of the guidelines

on accreditation/re-accreditation or TCAA, which manifest fraud, bad faith, or willful

misrepresentation intended to obtain undue financial gain at the expense of a DepEd employee

who is a borrower, policy holder or member of accredited entities, or to undermine the

effectiveness of the APDS.

Serious grounds include, but are not limited to, the following:

a. Approval/release/billing of loans/insurance premium/membership dues or contributions

without requisite approval by DepEd Verifier.

b. Making false representation to the DepEd employee regarding the terms and conditions

of the loan/insurance premium/membership dues or contributions.

c. Acceptance of blank Authority to Deduct (ATD), Promissory Note (PN), Disclosure

Statement, signed by the concerned DepEd borrowers.

d. Submission of false/fraudulent documents.

e. Inclusion of deductions not indicated in Annexes D1 – D3 (sample loan computation)

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f.

Computation of interest and non-interest rates on Loan not in accordance with the

guidelines and the Effective interest Rate exceeds the specified ceiling.

g. Billing of loans not yet granted, renewed or released to DepEd borrowers.

h. Entering into automatic payroll deduction agreements with fiscally autonomous DepEd

schools.

i.

Transfer, reassignment, and sale of deduction code.

j.“Piggy-backing” (Accredited entities allowing the use of the APDS Code by nonaccredited entities).

k. Making malicious or defamatory imputation, threat and physical injury against DepEd

officials and/or personnel in relation to the implementation of the APDS.

l.The Certificate of Registration/Authority of the entity is cancelled or terminated by the

IC, SEC, BSP or CDA,

m. Non-disclosure of the revocation or suspension of the Certificate

Registration/Authority by the concerned government regulatory bodies.

of

n. Repeated suspensions based on simple grounds, indicating refusal to comply with, or

wanton disregard for, APDS guidelines.

o. Other acts or omissions constituting fraud, bad faith, or willful misrepresentation

intended to obtain undue financial gain at the expense of a DepEd employee who is a

borrower, policyholder or member of accredited entities, or to undermine the

effectiveness of the APDS.

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