appropriations. The use of said funds withheld by the government
agencies other than for the purpose of remitting Program contributions
will hold the erring government employers liable under the pertinent
provisions of the Revised Penal Code.”
5.4. As of December 31, 2024, the Statement of Financial Position showed that the
accounts Due to GSIS, Due to Pag-IBIG, and Due to PhilHealth had balances of
₱1,361,027.86, ₱119,624.96, and ₱354,102.68, respectively. The Notes to Financial
Statements disclosed that in January 2025 remittance was made to the
aforementioned agencies. The audit team noted that despite the remittance made in
January 2025, certain contributions still remained unremitted to GSIS, Pag-IBIG,
and PhilHealth, detailed as follows:
Balance as of Remittance Unremitted
Payee
December 31, 2024 January 2025 Amount
GSIS ₱1,361,027.86 ₱881,773.14 ₱479,254.72
Pag-IBIG 119,624.96 0.00 119,624.96
PhilHealth 354,102.68 157,830.05 196,272.63
Total ₱1,834,755.50 ₱1,039,603.19 ₱795,152.31
5.5. Non-remittance of mandatory contributions payable to GSIS, Pag-IBIG, and
PhilHealth may result in the imposition of interests and penalties and may deprive
the employees of the benefits due them.
5.6. This observation was communicated to Management through Audit Observation
Memorandum (AOM) No. 2025-04(2024)-Bindoy dated February 12, 2025.
5.7. We reiterated our recommendation and Management agreed:
5.7.1. That the Municipal Accountant, coordinate with GSIS, Pag-IBIG, and
PhilHealth to determine the outstanding premium contributions of each
employee in their records;
5.7.2. To ensure that mandatory contributions are remitted in accordance
with the provisions of R.A. No. 8291, R.A. No. 9679, and R.A. No. 7875
as amended by R.A. No. 9241 and R.A. No. 10606 and its IRRs to avoid
the incurrence of interest and penalties; and
5.7.3. To provide justification for the non-remittance. Any additional interest
charges and penalties that may be imposed for late remittances shall be
shouldered by the responsible officers.
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