05-PPC08 Status of PY's Recommendations

8/11/2019 05-PPC08 Status of PY's Recommendations

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STATUS OF IMPLEMENTATION OF PRIOR YEAR’SRECOMMENDATION

Audit Observation RecoendationE!tent o"

I#$eentation

Cash in Bank Accounts inthe PPC Central Ofce andRegional Ofces disclosed adiscrepancy o P915,4419!9 as co"pared#ith actual $ank $alances

Re%uire Central Ofce andRegional Accountants toprepare pro"ptly the"onthly BankReconciliation State"entsand to i""ediately e&ectthe ad'ust"ents o longoutstanding reconcilingite"s

(end periodic re"inders todepository $anks to ensurethat the $ank urnishes thePPC )ead Ofce andRegional Ofces #ith there%uired $ank state"ents#ithin the prescri$edperiod o$ser*ed in the$anking industry

Partiallyi"ple"ented

+ro" P915 illion thediscrepancy ro"-../ #as reduced tP!0. illion in -..!

Reiterated in +indino 0

on2closure o 0! dor"ant

$ank accounts #ith totaldeposits o P104,.-9,93.

anage"ent should

i""ediately take thenecessary "easures orthe closure andor transero these dor"ant $ankaccounts to a*oiddor"ancy charges and"ai"i6e the use o theseunds

Partially

7"ple"ented

anage"entsu$"itted list oclosed accounts as o13 8ece"$er -..!8or"ant accountare continuousl$eing re*ie#ed anclosed

(u$sidiary edgers o $ankaccounts are not updated"aintained

aintain and updatesu$sidiary ledgers or all$ank accounts to acilitatethe early detection o errors, epeditead'ust"ents and todeter"ine i total


Reg 7 : 5! $anaccts noupdated

Reg 777 : no (

34




I#$eentationindi*idual accountsreconcile #ith the total inthe ;eneral edger

Reg 7< : noupdated

Cash Collecting Ofcer 2Post Ofces account per$ooks, ;eneral and oneyOrder +und sho#s ano*erstate"ent o P5/,4-0,3/5 co"pared tothe $alances in thePost"asters= Report

Reconcile cash collectingofcers account #ith theactual undepositedcollectionscash on handas reported in thepost"aster=s reportsRe%uire thereclassi>cations to

recei*a$le accounts o cash shortages and losseso Post"aster=sCashiers


+ro" P5/ illion thediscrepancy ro"-../ #as reduced tP50 illion A"e"orandu" date

19 August -..! #aissued instructing aaccountants tsu$"it the analysio >nanciatransactions #itdepository $ank, thpurpose o #hich ito "onitor the casaccount transactionsAccountants ar

instructed to re*ie#the PO collection"onthly


?nreconciled (u$sidiaryand ;eneral edger$alances o Cash CollectingOfcers Account sho#ed a

net discrepancy o P43,-15,3.9

Reconcile the (u$sidiaryand ;eneral edger$alances o the CashCollecting Ofcers 2

;eneral +und @ oneyOrder +und Accounts andprepare the necessaryad'usting entries i #arranted, and updatesu$sidiary ledgers

Partially7"ple"ented

ith2on2going

i"ple"entation

Collections are not anage"ent should Partially

35




I#$eentationdeposited in line #ith thepro*isions o (ections 111@ 104 o the ;o*ern"ent

Accounting @ Auditinganual ;AA <olu"e 7and (ection 39 o P8 1445resulting in theaccu"ulation o undeposited collectionsthus, eposing the sa"e tothe risk o loss, "isuse or"al*ersation o pu$licunds

enorce strictly thepro*isions o (ection 39 o P8 1445 and (ections 111

and 104, ;AA <ol 7 andother PPC regulations onthe prescri$ed re%uencyo deposit o collections toa*oid eposure o go*ern"ent unds topossi$le risks o loss or"al*ersation"isappropriation7 #arranted, anage"entshould relie*e non2

co"pliant cashiers ro"holding any position #ith"oney and propertyaccounta$ilities

7"ple"ented

Processes or $an

pick2up o depositro" P8=s CR#ith on2going re*ie#

Cash ad*ances a"ountingto P3.,113,.44 re"ainedunli%uidated contrary to(ec !9 o P8 1445

(trictly adhere #itheisting la#s, rules, andregulations in the granting,utili6ation and li%uidationo cash ad*ances pursuantto (ection !, COA Circularo 9/ : ..-


ith prepared"e"os to AO=de"anding uli%uidation o CA=s

Reiterated in +indino 1-

Cash Ad*ances #eregranted to ofcers ande"ployees #ithout there%uired $ond andadditional cash ad*ances#ere granted despite non2li%uidation o pre*ious

ones

Cash ad*ances oroperating epenses should$e granted only to thedis$ursing ofcers #ho areproperly $onded

Dnsure that theaccounta$le ofcersshould secure $onds ro"the Bureau o Ereasurypursuant to (ection 1.1 o P8 1445 7n addition,su$se%uent cash ad*ancesshould only $e granted

+ully i"ple"ented

o CA issued tthose un$ondede"ployees

36




I#$eentationP-,-13,033,44! as o 8ece"$er 01, -../representing --K o the

total assets o PPC is o dou$tul *alidity due to theollo#ing o$ser*ationsG

PPC2Central Ofce andse*eral regional ofces didnot conduct physicalin*entory o property, plantand e%uip"ent, su$"it anin*entory report thereonandor reconcile the sa"e

#ith the accountingrecords

report thereon duly*eri>ed $y the )ead o Ofce to deter"ine their

actual eistence,#herea$outs andcondition

Reconcile property records#ith the accountingrecords so as to deter"inethe accurate $alances o the PPD accounts

aintainupdate su$sidiary

ledgers and e%uip"entledger cards to support theaccuracy o the $alancesin the general ledger

Co"ply #ith theprescri$ed or"at onin*entory reportre%uire"ents per COACircular o !.21-4 andthe ;A( anual

A "e"o dated - Jan -..9 or thcon>r"ation o PP

report #as issued

OAP;2Ad"in Ehrough propert"anage"ent di*isiore%uired the regionto su$"it report oPPD in*entory las June 0., -..!)o#e*er, uco"pliance ha*e no

yet attained

Reiterated in +indino -

and and and7"pro*e"ents account$alance o P-3,!-4,/.. aso 8ece"$er 01, -../ isnot relia$le due to thea$sence o EranserCerti>cates o Eitle ECE o donated lots or legaldocu"ents to support

o#nership

e reiterate our pre*iousreco""endation or PPCto secure ECEs o thedonated real estateproperties+or properties that #erealready returned to thedonors, prepare ad'ustingentries to drop the" ro"

the $ooks


anage"ent ha$een trying to >n#ays on ho# to ha*e ECE o donated lotto PPC


Ehe $alances o and,Building and otor <ehicleaccounts in the $ooks o the )ead Ofce and Region7< #ere not reconciled as o

e reiterate last yearLsreco""endation toreconcile the a$o*e2"entioned accounts andprepare the necessary

ot ye7"ple"ented

Ehe regionaaccountant #a

39




I#$eentation8ece"$er 01, -../resulting in ana$nor"alnegati*e $alance

o P1-,545,040

ad'usting entries instructed treconcile records

Ehe (tructure and $uildingaccount is o*erstated $yP5,00!,430 due to theinclusion o $urned PPC$uildings and inrastructurepro'ect #hich is not yeti"ple"ented

ake the necessaryad'usting entries to dropro" the $ooks o accountsthe cost o the $urned PPC$uildings and thecorrespondingAccu"ulated 8epreciation

Re%uire the Regional

Accountant to recordassets only upon deli*eryo the sa"e and not at theti"e the o$ligation o allot"ents #as "ade

ot ye7"ple"ented

7n CR, stigathering dat$eore they #ill "akthe necessarad'usting entries

Ehe accuracy and *alidityo the net $ook *alue o PPD2(tructures and Buildingaccount is not relia$le dueto o*erstate"ent o useul

lie, non2pro*ision o 1.Ksal*age *alue, and thediscrepancy o ;eneraledger ; $alancesagainst the apsing(chedule a"ounting toP1,!41,!.1

anage"ent shouldstrictly i"ple"ent COACircular o -..02../ ande&ect all ad'ustingentries, i necessary

Reconcile the $alances o ; as against the apsing(chedule to ascertain thecorrectaccurate a"ount o PPD


anage"ent is stianaly6ing @

reconciling th$alances

O*erstate"ent o Property,Plant and D%uip"entaccount in the a"ount o

P-3,!33,.33 due to theina$ility o PPC toreclassiy theunser*icea$le propertiesto Other Assets accountand *arious de>ciencies

?nser*icea$le assetspending disposal should$e reclassi>ed to HOther

AssetsI account inaccordance #ith theguidelines and proceduresprescri$ed in the ;A(anual

Appropriate action should$e taken $y the


?nser*isea$le assetare still noreclassi>ed to OtheAssets account

Ehey still *alue thasset at P1.. peunit

40




I#$eentationCo""ittee on 8isposalrelati*e to theunser*icea$le properties

pursuant to (ec /9 o P81445

Ater the conduct o actualin*entory, reconcilein*entory schedule #iththe accounting records toascertain the accuracy o the a"ount o theProperty, Plant andD%uip"ent account

7ndicate the appraisal costo the >ed assets i theac%uisition costs are notkno#n, instead o *aluingthe asset at P1.. per unitor air presentation o theassets in the >nancialstate"ents

+or the propertysupplyofcer and the accountant,

they should eert e&ort tolocate the unkno#nunidenti>ed assets

Re"o*e ro" the lapsingschedule all the tangi$leassets, deecti*e anddisposed assets and "akethe necessary ad'ustingentries

Drroneousrecordingtreat"ent o construction "aterialsissued in the constructiono >ed assets resulted inthe understate"ent o t#odi&erent accounts, theProperty, Plant and

PPC should consistentlyapply and strictly conor"#ith the pro*isions o ;A( and Par 05, PA( - inrecording )ead Ofce andRegional Ofcetransactions relati*e to theconstruction o the

+ully i"ple"ented

ith "onthly reporo pro'ecconstructionco"pleted

41




I#$eentationD%uip"ent PPD account inthe $ooks o PPC )eadOfce in the a"ount o

P1,.13,//4 and theConstruction 7n Progress2Agency Assets account inthe $ooks o the PPCRegion <77 in the a"ount o P1-3,/!0

agency=s >ed assets

7ssuances o "aterials or

construction should $erecorded as they occurand that the (upply Ofcershould prepare the Reporto (upplies and aterials7ssued or construction"aterials already issued orconsu"ed and su$"itsa"e to the Accounting8i*ision or thepreparation o the Journal

Dntry <oucher

At the PPC )ead Ofce, apolicy on recognition o PPD $ased on thepro'ect'o$ orderco"pleted should $eadopted and the presentpractice o charging theused "aterials related topro'ect to the epense

account $e re*ised inorder to pro*ideprocedures"easure"ents conditionsthat #ould ensure theproper charging o cost o the pro'ect and the ti"elyrecognition or transerringo asset ro" construction"aterials in*entoryaccount

+urther"ore, theAccounting 8epart"entshould seek assistancero" the aintenance8epart"ent to acilitateactual costing o theco"pleted pro'ect

42




I#$eentation

Ehe accuracy, *alidity andeistence o Accounts

Recei*a$le :Erade accountcannot $e relied upon dueto the ollo#ingo$ser*ationsG

?nreconciled discrepancy$et#een general ledgerand schedule osu$sidiaryledgercon>r"ation o Postage Charge AccountPCA

Re%uire post"asters tosu$"it certi>cate o

"ailingother supportingdocu"ents Re%uire accounting toreconcile the discrepancies$et#een ; and(schedule o PCA

7n Region l<, re%uireaccounting to update the( or PCA


Reg 7< : ( noupdated

8iscrepancy $et#ee; @ ( not yereconcile

7n the CR,a$nor"alnegati*e account$alances o se*eral PCAholders a"ounting to P-,3.3,!50 a&ected the real$alance o PCA recei*a$les

Reclassiynegati*ea$nor"al$alances to the Other7nco"e Account

7"ple"ented

Already reclassi>eto iscellaneou7nco"e Prior yr ad'per JD< o.!.9.4!5 date9-..!

Collection o CR PCAaccounts alling under thea$o*e 9. days categorya"ounting to P-3,/5!,-!0or -9K o the total PCArecei*a$les is alreadyre"ote

e reco""end that PPCinitiate the re%uest or#rite o&


As o 90..9 totaPrior yr Recei*a$la"ounted tP-19,!-.,1./ #pay"ent oP1.3,/4/,!0-lea*ing outstandin$alance o

P110,./-,-/4 #discounts or re*ersaa"ounting tP05,-43,.9- upoull pay"ent

43




I#$eentation7nternational Accountspertaining to prior yearsa"ounting to

P1,!99,515,/44 is dou$tul

$alances Eake upad'ust"ents or si"ple"iscalculations or

erroneous entries +or allother *eri>edoutstanding $alances,consider pro*iding orAllo#ance or 8ou$tulAccounts andori"ple"entingappropriate legal action Eake also intoconsideration the allo#edo&setting o de$it and

credit $alances $et#een+oreign PostalAd"inistrations

D*aluate and analy6eun*eri>ed $alances orthe possi$le #rite2o&transer o accounts

Adopt and i"ple"ente&ecti*e coordinating

procedures $et#een theAccounting 8i*ision, the7nternational Accounts8i*ision and otherconcerned Ofcesregarding reconciliationand updating o the AR$alances

ad'ust"entrestate"ent as pe JD< nos ...1-1.

and ...1-1.- adated 8ec 01,-..!

An a"ount o P-3,!.-,.15or -!4K o the

P94,41!,130 $alance o 8ue ro" Ofcers andD"ployees accountre"ained outstanding orlong periods, thus itsclassi>cation as current isinappropriate

anage"ent shouldehaust all ad"inistrati*e

and cri"inal sanctions toreco*er the a$o*eaccounts ro" theaccounta$le ofcersconcerned

(u$"it re%uest or #rite2o& or the accounts o the


45




I#$eentationdeceased, resigned,retired, dis"issed and outo the ser*ice e"ployees

8eter"ine the reason ornon2settle"ent o theseaccounts #hile theconcerned e"ployees#ere still in the ser*ice

Ehe *alidity and ade%uacyo the allo#ance ordou$tul accounts in thea"ount o P1.5,.!1,40.cannot $e ascertained due

to the a$sence o appro*ed#ritten policy o thecorporation in setting upAllo#ance or 8ou$tulAccounts

e reiterate our pre*iousreco""endation to adopta policy on the pro*isionsor dou$tul accounts#hich shall take into

consideration such actorsas aging o accounts,collection eperience o the co"pany in relation tothe particular recei*a$les,past and epected losseperiences, and identi>eddou$tul accountspursuant to the ;A(anual

Co"ply #ith the pro*isionso the ;A( anual in thedeter"ination o theallo#ance or dou$tulaccounts to gi*eassurance that recei*a$lesare presented in the>nancial state"ents attheir net reali6a$le *alue


Ehe allo#ance odou$tul account

#as esti"ated at "ini"u" o -K tcope up o thpre*ious esti"ate a1.K

Cleared "oney order

a"ounting to P5/,3!0,353Regions 1 and CAR only#ere not recorded in theregional $ooks o accountsthus an o*erstate"ent o the 8ue to Central OfceAccount $y the sa"ea"ount

Ehere should $e close

coordination $et#eenCentral and RegionalOfces to ensure that listso cleared "oney order isregularly or#arded toregional ofces

Partially

7"ple"ented

All accountants arad*ised to record thsaid transactions otheir respecti*$ooks o accountsAn ad'ust"ent o th

46




I#$eentation8O+ account #a"ade in -..! $asedon esti"ation o

outstanding accounconsidering the 9.day *alidity period)enceorth, reconciliation o thaccount shall $undertaken

Contingent (uspenseAccount in the a"ount o P1,1//,5/1,!14 pertaining

to the unreconcileddi&erences $et#een the;eneral edger and(chedules(u$sididaryedger Balances

anage"ent should eerte&ort to reconcile andreduce the P1/! $illion

$alance o the saidcontingent suspenseaccount


A guideline to ollo#or certain accountto clean up th$alance sheet #aissued througCircular o ./2.dated June -../Continuousreconciliation an#ork $ack otransaction Mo# ha

$een done $y thregions As o thidate there arregions #ho haalready segregatethe goodsu$stantiatedaccounts ro" th$ad accounts ounsu$stantiatedaccounts Onl

Region 4 and Regio1. has not yeco"plied #ith thsaid circular 78ece"$er -..Balance (heet, thHBad AccountsI #erall lodged in HOthe

47




I#$eentationia$ilitiesI accounor ease o"onitoring and t

reMect the *alues othe other accounts

Property, Plant andD%uip"ent account #ith anet $ook *alue o P-,-13,033,44! as o 8ece"$er 01 -../representing --K o thetotal assets o PPC isdou$tul due to no taking o

physical in*entory

Ehe agency shouldconduct physical in*entoryo all PPD and reconcile#ith eisting accountingrecords


Regions -, 3, / and1- ha*e their ;$alances o PPtallied #ith the actuaphysical in*entoryOther regions and CO

ha*e partiallupdated thschedule o PPin*entory

Balances o the ollo#ingin*entory accounts per$ooks and per "onthlyaccounta$ility reports o regional custodianssupplyofcers as o 8ece"$er 01,

-../ at the )ead Ofce,CR, CAR and Regions 7, 777and N77 sho# a totaldiscrepancy o P!.,343,5/-

Conduct regularreconciliation o accounting records against"onthly report o accounta$ilities o in*entory custodians Eake

appropriate actions tocorrect any discrepancies

Re%uire PPC Central Ofceto sendtrans"it co"pletedata including unit costs o transerred supplies,in*entories andaccounta$le or"s


(e*eral Philatelic 7te"s inRegion 7 #hich are notre*erti$le to Postage(ta"ps costing P91,09/#ith a ace *alue o P005,349 #ere either slo#or non2"o*ing due toli"ited or lack o sales

Coordinate #ith the Chie o the Philatelic (er*ice o PPC at the Central Ofceregarding the return o slo#non2"o*ing Philatelic7te"s non re*erti$lecosting P91,09/ to lightenthe #orkload o the oneyOrder and (ta"p

ot ye7"ple"ented

48




I#$eentationCustodian as #ell as theAccountant

Also co""unicate theregion=s re%uest or li"itedstock issuances to theChie o the Philatelic(er*ice to ensure thatstocks o such ite"s inRegion 7 are 'ust sufcientstocks or three 0 "onthsconsu"ption only there$ypre*enting the occurrenceo idle or ecessi*e

in*entories

7n*entories per $ooks #itha total *alue o P4,53!,1/9in Region 7< #ere notreconciled #ith the physicalin*entory report, hence,the $alance reMected in the>nancial state"ent isunrelia$le ike#ise,$alance o supplies and

"aterials in the a"ount o P/!0,499 is not relia$ledue to the ailure to updatethe stock cards

e reiterate prior year=sreco""endation tore%uire the respecti*ecustodian accounta$leofcer to conduct physicalin*entory o all stocks andreconcile the sa"e #ithaccounting records on a"onthly $asis Re%uire

the Accounting (ection toeert ut"ost e&ort tolocate the discrepanciesand prepare the necessaryad'usting entries

Ehe Property Custodianshould update the postingin the (upplies edgerCard to reMect the correcta"ount o the (uppliesand aterials account

ot ye7"ple"ented

Relia$ility and *alidity o the Accounts Paya$le27nternational Accounts inthe a"ount o P-19-B isdou$tul

e reiterate our prioryear=s reco""endationthat the PPC shouldprepare su$sidiaryledgers andcorresponding schedulesto support its AP


Reconciliation orecords $et#een th7nternationalAccounts an

49




I#$eentation7nternational Accounts7n relation, it is alsoreco""ended that a

co""itted, thorough,and ehausti*e re*ie#and e*aluation o theAccounts Paya$le :7nternational Account=sprior years= $alances $eundertaken to $e a$le tosettle and ad'ust thedou$tul $alances

O$ser*e proper

i"ple"entation o therules and regulations o the ?P? ?ni*ersal Postal?nion regarding theo&setting o credits andde$its $et#een +PAs+oreign PostalAd"inistrations topre*ent urtheraccu"ulation o additional unad'usted

$alances

Accounting 8i*isiois on2process

Analysis o7nternationalAccounts Recei*a$lis continuouslconducted ancoordinated #ith 7A8#hich pro*ided thlist o outstandinaccounts recei*a$las o 8ece"$er 01-../, the sa"e sha

$e con>r"ed #itthe +oreign PostaAd"inistrations

Ater con>r"ationAccounting 8i*isioshall ad'ust th$ooks accordinglupon deter"inatioo dou$tul accounts

Ehe Accounts Paya$le inthe CordilleraAd"inistrati*e RegionCAR and Region Nreported understate"ent o P1,..!,/90 and P4,91/,9-9respecti*ely or a total o P5,9-3,/--, thus a&ectingthe propriety o the

account $alances

D&ect the necessarycorrecting entries on theerroneous charges "adeon the accounts a&ected


7n Region N JD< i-../ and -..! #erstill traced to check ad'ust"ents ha*$een "ade

Accounts Paya$le :?nli%uidated O$ligations o prior years totalingP/.,103,1-0 is unrelia$ledue to the discrepancy$et#een the general ledger

aintain su$sidiaryledgers or each clai"antor "onitoring purposes

Dert ut"ost e&ort to


50




I#$eentation$alance and the scheduleo unli%uidated o$ligationsin the a"ount o

P5-,/90,391

locate discrepancies and

Prepare the necessary

ad'usting entries

<arious Other Paya$lesAccounts #ith a$nor"al$alances o P1,140,-55 and?naccounted unds held intrust in Region <77a"ounted to P159,0/1,thus rendering the *alidityand accuracy o the

accounts dou$tul

7n*estigate and analy6ethe causes o the negati*e$alances and the nature o the a"ount held in trustand e&ect the necessaryad'ust"ents


P11 illion o the recordedaccounts paya$le o P!9illion representedclai"s #ithout supportingdocu"ents

Prepare ad'usting entriesto correct the paya$lesresulting ro" erroneousentries


Auditreco""endation #ai"ple"ented,ho#e*er, paya$le#hich #as not *alidin CF -..! #as sti

included in the $ooks

Accounts 8ue to(u$sidiaries Afliates P+Oand PP(B7 (alary loan ha*enegati*e $alancesa"ounting to P1-! illionand P041, respecti*ely or atotal o P439 illion

Dert e&orts to re*ie# theaccounts #ith negati*e$alances and identiy thecauses or their eistencein the a&ected accounts

Re*ie# "isclassi>cationsand errors in postings in8ue to PP(B7 Dducationaloan and e&ect the

necessary ad'ustingentries


CAR and Region <777 ha*e atotal understate"ent o P0,/99,11- in the 8ue toB7R Account

Coordinate and coner #iththe Regions on theresolution o pendingre%uest or ta su$sidy to$e a$le to e&ect the

ot yet i"ple"ented

51




I#$eentationnecessary ad'ust"ents orentries in the $ooks o accounts

Ehe inter and intra2agencypaya$les #ereunderstated $y P0/0,3-/

e reco""end thei""ediate correction o errors upon disco*ery toa*oid rush #ork at yearend

ot yet i"ple"ented

Erust lia$ilities in Region 7<pertaining to B7R, ;(7(,Pag2i$ig and Philhealth inthe total a"ount o

P04,/01,5!-

e reiterate our prioryearLs reco""endation toreconcile the recordedtaes, pre"iu"s and loan

a"orti6ations #ithheldro" e"ployeesL salariesin the $ooks and e&ect thenecessary ad'ust"ents inthe $ooks Also, updatedsu$sidiary ledgers o these accounts "ust $e"aintained or "onitoringpurposes and to a*oidpenalty or delayedre"ittance to the ofces

concerned


;o*ern"ent D%uityAccount #as understated$y P9,!9-,30.

e reiterate our lastyear=s reco""endationthat RegionalAccountants shouldreclassiy Capital (tock,Appraisal Capital and8onated Capitalaccounts to ;o*ern"entD%uity

ot yei"ple"ented

Corresponding "e"shall $e issued to theRegional Accountantto e&ect the 'ournaentries

7nco"e accounts #ereo*erstated $y P0,!-5,44!due to the non2recognitiono <alue Added Ea onPostal (er*ices in CAR#hile Region <777 reportedan understate"ent o

Coordinate #ith the+inance anager on theproper treat"ent o the<alue Added EaCredita$le Eaesithheld to ha*e a properpresentation o the inco"e

+ully i"ple"ented

52




I#$eentationthat cost o issued ite"sand ending $alance o supplies and "aterials

shall $e co"puted usingthe o*ing A*erageethod

?npaid ter"inal lea*e$ene>ts totaling P-5illion due to e"ployees#ho retired in CF -../#ere not recogni6ed ascurrent year=s epenses inRegion <777 there$y

understating the epenseaccount2ter"inal lea*e$ene>ts

ake the necessaryad'ust"entscorrections onthe transaction

Dnsure that the generallyaccepted accountingprinciples are o$ser*ed in

the recording o transaction andpresentation o +inancial(tate"ent and disclosure

ake the ollo#ingad'usting entry torecogni6e the appropriatepaya$les in the $ooks, to#itG Prior Fears Ad'ust"entP-,54/,0!3 Accounts

Paya$le

Assign a responsi$lepersonnel or the"aintenance o ledgercard and depreciationschedules to ensureco"plete and accuraterecording

ake the necessary

correctnessad'ust"ents tothe accounts a&ected

Cause the reund o thepay"ents o RAEA andDD #ithout supportingdocu"ents $y thepersonsofcials


CF -../ Eer"inaea*e Bene>ts #arecorded $ut CF-..! #as no

recorded due to Philpost e"o issuein Jan -..! ro"AP; +inance not trecord optionaretire"ents

54




I#$eentationconcerned

7"proper treat"ent o

e%uip"ent purchased inCAR to the aintenanceand Other OperatingDpenses account resultedin the non2recognition o assets #orth P15!,-94

O$ser*e the proper

charging o ependituresand re%uest additional$udget #hen #arranted

Record the e%uip"entpurchased to theappropriate account

ot yet 7"ple"ented

Personal (er*ices DpenseAccount is understated $yP1,94/,... #hile

aintenance and OtherOperating Dpenses iso*erstated $y P9-9,!54

ake the necessaryad'usting correcting entry

ot yet i"ple"ented

O*erpay"ent o P1..,351or salaries and o*erre"ittance o P54,.1/ orpre"iu" contri$ution to;(7(, Philhealth and Pag2i$ig +und due to the delayin inor"ing the Accounting

(ection o Region <777regarding e"ployees onlea*e #ithout pay andthose #ho retired orresigned ro" the ser*ice

7ssue "e"orandu" to alle"ployees re%uiring those#ho intend to resign ora*ail o optional retire"entto notiy in #riting thePersonnel (ection at least0 "onths prior to the date

o theirresignationretire"entro" the ser*ice

onitor e"ployees #ithrespect to ter"ination o ser*ices such as death,transer, resign, AO,etc and to i""ediatelyinor" the Accounting(ection to a*oido*ererroneous pay"ent

Re%uest ;(7( to reund thepre"iu"s paid or thosee"ployees #ho arealready retired or resigned

ot yet i"ple"ented

55




I#$eentationper die" to the "e"$erso the PPC Board o 8irectors or the year -../

in the aggregate a"ount o P05.,..., P-,.4.,... andP-,144,44! respecti*elyhas no legal $asis

regulations on the $ene>tsaccorded to the go*erning$oard o the corporation

PPC did not appropriatesufcient unds or the;ender and 8e*elop"entProgra" o the go*ern"entcontrary to the pro*ision o the ;eneral Appropriations

Act

Allocate unds or ;enderand 8e*elop"ent pro'ectsand acti*ities inaccordance #ith thepro*isions o the ;eneralAppropriations Act

Co"ply #ith the guidelineso D8ACR+ JointCircular o -..421 in thepreparation o annual ;A8plan and $udget and thesu$"ission o acco"plish"ents report


8ue to tight >nanciaconstraints, #cannot co"ply #it

the 5K re%uire"eno the Persona(er*ices annua$udget allocation o;A8, ho#e*er, ;A8 a#arenesprogra" iincorporated in ou$udget or training

Reiterated in +indin

o 14

8elayedprocure"entprinting o ofcial receipts caused thenon2issuance o ORs inse*eral CR post ofcesand regional post ofces in*iolation o (ection 3! o P8 1445 and B7R rules andregulations

anage"ent shoulde*aluate the agency=sprocure"ent syste"deter"ine the "ost idealre2order point or theprintingpurchase o OR topre*ent shortage


Ehe Ofce o thAsst Post"aste;eneral oAd"inistration haalready ans#erethis concern in th

last COA -../ AudiO$ser*ation

57

05-PPC08 Status of PY's Recommendations

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Transcript of 05-PPC08 Status of PY's Recommendations