DepEd told: Return P246 million kept in unauthorized bank accounts

MANILA, Philippines — The Commission on Audit (COA) has directed the Department of Education (DepEd) to remit to the national treasury a total of P246 million found to have been maintained in “unauthorized, unnecessary and dormant” bank accounts as of end of 2023, the last full term of Vice President Sara Duterte as the agency’s secretary.

“A total of P246,132,581.02 cash in bank balance in CO (Central Office) and ROs (Regional Offices) I, IV-B, V, VI, IX and XIII was not reverted to the national treasury contrary to existing laws, rules and regulations,” the COA said in its 2023 annual audit report on the DepEd.

The commission said the audit team’s review and validation of DepEd’s books revealed that “some bank accounts were maintained without specific authority or legal basis.”

“Furthermore, these bank accounts include collections/receipts from various sources still retained in the said unauthorized current accounts as standby funds and are kept available at their disposal,” the COA said.

The audit body said such practice exposes the funds to “risk of misuse or misappropriation” as they “could possibly be used to augment the financial requirements of unprogrammed activities and/or settlement of valid obligations.”

The COA said the practice also contravened the General Provisions of the 2023 General Appropriations Act (GAA), specifically Section 4, which mandates all government offices to deposit to the national treasury all charges, assessments and other receipts or revenues collected that form part of the government’s general fund; and Sections 6 and 7 which both mandate the turnover to the national treasury all trust receipts, performance bonds and other deposits.

The audit body also cited Section 65 (a) of Presidential Decree 1445 or the Government Auditing Code, which states that all income accruing to the government agencies “shall be deposited in the national treasury or in any duly authorized government depository, and shall accrue to the unappropriated surplus of the General Fund of the government.”

The audit breakdown showed the DepEd’s CO has been maintaining two trust accounts with Land Bank of the Philippines with a combined balance of P39.47 million, “without authority from the Permanent Committee as required under Section 66 of PD No. 1445.”

One of the trust accounts was under the “OSEC” or Office of the Secretary with a balance of P38.66 million, representing “collection of sales of bid docs, protest fee, performance security/bond, donation and other miscellaneous income.”

The CO’s other trust account was under the name “UNICEF Fund” with a balance of P805,340.47. The amount came from the fund donated by the United Nations Children’s Fund for the DepEd’s Kindergarten Education Program.

Furthermore, the DepEd CO was also found maintaining in various trust accounts a total of P15.09 million in “unauthorized retention of collections.”

In a reply incorporated in the audit report, the DepEd CO said that a total of P11.14 million from four trust fund accounts was already remitted to the Bureau of the Treasury as of March 2024.