DOA Says $6 Million in Child Support Transferred By Bank to Offset Overdrafts

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According to DOA Director Christine Baleto the child support funds were transferred out of the child support account to offset overdrafts from GovGuam payroll accounts and income tax accounts in the Bank of Guam.

Guam – The Department of Administration says that the $6 million dollar transfer of funds out of the child support fund was done by their bank.

 

 

According to DOA Director Christine Baleto the child support funds were transferred out of the child support account to offset overdrafts from GovGuam payroll accounts and income tax accounts in the Bank of Guam. Baleto says that this was done as part of an agreement between the Bank of Guam and the Department of Administration that allows the bank to transfer funds out of accounts to make up for overdrafts in other accounts. “What happened during that week is that our department as we mentioned previously, became used to scheduling payments throughout a weekly basis and they would schedule those payments based on their anticipated receipts. During that particular week what they expected did not come through and so therefore there was a six million dollar shortage in the account which the bank through their right of offset transferred into the general account,” explained Baleto adding, “So the organization agrees that whenever you sign up for an account and you authorize or you indicate who the signatories are on that agreement it says the organization agrees that all sums at any time in this account shall be subject to the right of offset for any obligations of this organization to the bank and it agrees to further pay the bank on demand of any and all overdrafts on said accounts. We only have two signatories on our accounts and that is Rosita Fejeran who is our Treasurer of Guam and Maryann San Nicolas who is the backup so the only one who has access to transfer funds within the department is the Treasurer of Guam and she did not do the transfer.”

 

Baleto said she was not notified of the transfer either. The DOA Director said she would create a standard operating procedure and make the child support account a restricted account to prevent this from happening again in the future.