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feb28.2013Solon seeks creation of legislative-executive body to reconcile GSIS accounts

feb28.2013Solon seeks creation of legislative-executive body to reconcile GSIS accounts

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Solon seeks creation of legislative-executive
body to reconcile GSIS accounts
Solon seeks creation of legislative-executive
body to reconcile GSIS accounts

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Published by: pribhor2 on Feb 28, 2013
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02/28/2013

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FEB.

28, 2013

NR # 3029

Solon seeks creation of legislative-executive body to reconcile GSIS accounts
A lawmaker has urged the House of Representatives to fast track the passage of a measure that seeks to reconcile some P11-billion unreconciled accounts of the Government Service Insurance System (GSIS). Rep. Winston Castelo (2nd District, Quezon City) said House Bill 6820 moves to enhance the GSIS account system through the creation of a legislative-executive audit body and pool of forensic accountants and auditors. Castelo’s proposal came in the wake of a report conducted by the Commission on Audit (COA) in 2011 showing that GSIS has unreconciled accounts amounting to P11.158 billion, which could greatly affect members’ retirement/life claims, loan proceeds and other benefits. COA explained that accounts for clearing is a systems, application, products (SAP) temporary lodging account for unmatched details of billing and collection, for later posting to the individual GSIS members’ ledger accounts. “It is hereby proposed that a form of legislative-executive audit body be formed or so created to work in reconcilement, in-depth study of the capabilities and weaknesses of the computer programs, identification of system errors and toward recommending if not developing enhancements of the system,” Castelo said. Citing the COA report, Castelo said for several years now, GSIS has been trying to address the issue on accounts for clearing by implementing measures such as massive posting by the Internal Reconciliation Department (IRD), regular extraction analysis; and creation of teams to review the present capabilities and weaknesses of the computer programs.

“Theoretically, a policy failure of this scope and magnitude translates in possible negative effects unto the retirement/life claims, loan proceeds and other benefits of every bonafide member of the GSIS,” Castelo said. Apparently, with GSIS’ 1.3 million active members as of December 2012, its ability and capacity to account for every peso in member’s contribution is deemed to have crashed as not to be able to account with scientific and technical validity on all its monetary and financial affairs as the only legitimate insurance system for public employees, Castelo added. Under the measure to be known as the “GSIS Accounts Reconcilement Act of 2013,” the Legislative-Executive Reconcilement Body shall be composed of representatives from COA and Congress to perform reconcilement of accounts of GSIS. The said audit body shall be authorized to commission a private organization to help its work. When the technical framework shall have been tested, validated and evaluated, GSIS shall adopt it in

its measures, systems and programs. (30) lvc

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