SC agrees to close 7 inactive bank accounts with P268-M deposits – COA – Manila Bulletin


The Audit Commission (COA) said the Supreme Court (SC) had agreed to close seven bank accounts with 268.3 million pesos in deposits, but they had been inactive since 2015.

He said inactive or dormant bank accounts were flagged by the COA in its 2021 audit report.

The COA said it sent a letter to Chief Justice Alexander G. Gesmundo about the status of the seven dormant Continuous Form Control (CFC) accounts that were previously used for payroll.

When the Automated Payroll System (APS) was introduced in May 2014, the SC stopped accessing funds from CFC accounts.

“As of June 30, 2022, we found that these accounts were no longer in use and that no transactions had been recorded in the bank by bank statement since 2015,” the COA letter said. He added that the only transactions recorded were the interest earned from January 2007 to March 2021 and the cash deposit made on January 17, 2013.

The COA said the SC CFC accounts consisted of: P48,106,111.56 for the Regional Magistrate’s Court; P5,625,853.69 for the Metropolitan Court of First Instance; P83,689,486.03 for the Municipal Circuit Magistrates Court; P39,486,258.48 for the Municipal Court of First Instance in cities; P81,320,810.40 for the Municipal Court of First Instance; P95,090.20 for Sharia District Court and P10,071,424.75 for Sharia Circuit Court.

In its letter, the COA also recommended to the SC the disbursement of the total amount of P268,395,035.11 to the Office of the Treasury (BTr) in accordance with the Joint Circular No. 4-2012 of the Standing Committee dated September 11, 2012 and the Section 10 of the General Provisions of the General Appropriations Act (GAA) for the 2021 financial year.

He said the Joint Standing Committee Circular directs the reversion of all dormant accounts and unnecessary Special and Trust Funds to the General Fund (GF), while Section 10 of the General Provisions of the GAA FY 2021 required Special Accounts , trustees or trustees, and The Revolving Fund be closed and returned to the Global Fund “when there is no legal basis for its establishment, when their terms have expired or when they are no longer necessary for the achievement of the purposes for which said funds have been created”.

“Since there have been no disbursements or withdrawals made from CY 2007 to 2021 to the fund…, the account is no longer needed as the purpose for which it was created no longer exists, so it should be returned to GF and for disbursement to BTr in accordance with the aforementioned regulations,” the COA said.

“We have recommended and Management has agreed to request the Department of Accounting (AD), Office of the Administrator of the Court (OCA), to facilitate the closing of the current accounts of the CFC and the Retirement and Retirement Gratuity Fund. remit the full balance to the BTr,” he added.