20.5 As shown in the tabulation above, the remittances were either less than or in
excess of the amounts withheld in the previous month, but never equal. This
inconsistency is not in line with the obligations of the Provincial Government
under the aforementioned provisions governing the remittance of funds
withheld for GSIS, PhilHealth, and Pag-ibig.
20.6 Upon verification of the remittances of the aforementioned mandatory
deductions for the period January to July 2024, the Audit Team observed that
while the Provincial Government had remitted certain contributions withheld
within the prescribed timeframe, others were not remitted on time. The details
of these delays are presented in Appendix G1-3.
20.7 In our assessment, this condition could have been avoided if Management had
implemented and maintained a review process before the remittance of
premiums and loan payments. This process should have included verifying that
the remittance matched the actual amounts withheld as recorded in the
subsidiary ledgers, ensuring that the prepared remittance equals the actual
amounts withheld, and performing reconciliations whenever discrepancies
arise.
20.8 The non-observance of the timely remittance of all withheld mandatory
deductions may result in penalties and interest charges. Furthermore, this
situation may affect the enjoyment of the benefits that the employee members
and the Provincial Government could access, including loans, hospitalization
subsidies, and other relevant benefits available to members of GSIS, HDMF,
and PHIC.
20.9 We recommended and Management agreed to implement a review process
that would ensure that the monthly remittance matches the total funds
withheld, including the performance of reconciliation procedures to
address any discrepancies between the withheld amounts and the prepared
remittances, and thereafter ensure the timely remittance of all withheld
funds in compliance with the applicable laws, rules, and regulations
governing the remittances to GSIS, PhilHealth, and Pag-ibig.
SUMMARY OF SUSPENSIONS, DISALLOWANCES AND CHARGES
The reported audit suspensions, disallowances and charges of the Provincial Government
as of December 31, 2024, were as follows:
NS/ND/NC NS/ND/NC
Ending
Ending Balance Issued from Settled from
Particulars Balance
(As of 12/31/23) 01/01/24 to 01/01/24 to
(As of 12/31/24)
12/31/24 12/31/24
Suspensions ₱ 29,021,895.75 ₱ 0.00 ₱772,476.43 ₱28,249,419.32
Disallowances 536,052,230.48 (16,625.00) 0.00 536,035,605.48
Charges 0.00 0.00 0.00 0.00
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