Court Fiduciary Funds

October 11, 1995

OCA CIRCULAR NO. 50-95

 

The following guidelines and procedures for purposes of uniformity in the manner of collections and deposits are hereby established: cIHDaE

A. Guidelines in Making Deposits:

(1) Deposits of Fiduciary funds shall be made under a savings account. A current account may also be maintained provided that a savings account is also maintained with automatic fund transfer arrangement.

(2) Deposits shall be made in the name of the Court, with its Clerk of Court and the Executive Judge as authorized signatories.

(3) The Clerk of Court shall be the custodian of the Passbook to be issued by the depository bank and shall report to the Executive Judge for RTC, SDC, MetroTC, MTCC and the Presiding Judge for MTC, MCTC and SCC, the bank's name, branch and savings/current account number. Xerox copy of the passbook shall be submitted to the Fiscal Audit Division.

B. Guidelines in Making Withdrawals:

(1) Withdrawal slips shall be signed by the Executive/Presiding Judge and countersigned by the Clerk of Court.

(2) No withdrawals, except as specifically provided in the immediately preceding paragraph, shall be allowed unless there is a lawful order from the Court that has jurisdiction over the subject matter involved.

(3) When maintaining a current account, withdrawals shall be made by check. Signatories on the check shall likewise be the Executive/Presiding Judge and the Clerk of Court.

(4) All collections from bailbonds, rental deposits, and other fiduciary collections shall be deposited within twenty four (24) hours by the Clerk of Court concerned, upon receipt thereof, with the Land Bank of the Philippines.

(5) Interest earned on these deposits and any forfeited amounts shall accrue to the general fund of the national government. Within two (2) weeks after the end of each quarter, the Clerk of Court shall withdraw such interest and forfeited amounts and shall remit the same to the National Treasury under a separate, remittance advice, duplicate copy thereof to be furnished the Chief Accountant of the Supreme Court for record and control purposes.

(6) Only one depository bank shall be maintained and the bank must be formally informed by the Executive/Presiding Judge as to who are the authorized signatories to the withdrawal slips and that every withdrawal slips must be accompanied by a court order authorizing the withdrawal of the amount indicated thereat.

(7) Except in instances specifically mentioned in the immediately succeeding paragraph, all fiduciary collections currently deposited with the local treasurers/and other depositories shall be withdrawn therefrom and deposited with the savings/current accounts maintained by the court for these collections.

(8) In localities where there are no branches of the Land Bank of the Philippines, fiduciary collections shall be deposited by the Clerk of Court with the Provincial, City or Municipal Treasurer. EaHIDC

(9) Within two (2) weeks after the end of each quarter, all Clerks of Court are hereby required to submit to the Chief Accountant of the Supreme Court, copy furnished the Office of the Court Administrator, a quarterly report indicating the outstanding balance maintained with the depository bank or local treasurer, and the date, nature and amount of all deposits and withdrawals made within such period.

Circulars that are inconsistent herewith are considered revoked.

This Circular shall take effect on November 1, 1995.

(SGD.) ERNANI CRUZ PAÑOCourt AdministratorOffice of the Court Administrator