BTr to oversee bank accounts of government agencies, state-run schools

MANILA, Philippines - All national government agencies and state-owned universities and colleges (SUCs) will soon be required to authorize the Bureau of Treasury (BTr) to have oversight functions over their respective bank accounts.

The move would essentially allow the BTr to siphon off an estimated P30 billion to P60 billion “cash on hand” of these state agencies and SUCs.

In a joint administrative over issued on Jan. 6, and made public Friday, the Departments of Finance, Budget and Management and the Commission on Audit has instructed all heads of departments, bureaus and offices of the National Government,including SUCs, to report their bank accounts to the BTr.

Furthermore, the order has mandated them to issue a waiver that would effectively allow the bureau to “check, verify, and undertake reconciliation procedures with the banks regarding the bank accounts.”

The DBM, DOF and COA said the move is part of government efforts to facilitate the planning and management of the cash resources of the National Government.

“Failure to comply on the part of the instrumentalities of the Executive Department shall merit the usual administrative sanctions provided by law. Non-compliance may also result in the exclusion of the department or agency from the Government Integrated Financial Management Information System under Public Financial Management Reforms Roadmap for the country,” the DBM, DOF and COA said in the joint administration order.

Treasury officials said the aim is to put the funds back to the BTr, which would be more capable of managing and monitoring the funds.

The objective is to determine how much idle funds are available and put this back to the BTr so that the government does not have to borrow as it does now and put the funds to better use and management.