B.

STATUS OF IMPLEMENTATION OF PRIOR YEARS RECOMMENDATIONS

2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
Part II.A of
Comment &
Observation
No. 1
The accuracy and existence of
the Cash in Banks account
cannot be ascertained in vie
of the discre!ancy beteen
the book and bank ba"ances of
P#1$.%& mi""ion.
'e(iona" Accountants shou"d
exert extra efforts to trace) verify
and reconci"e the variances
beteen the book and bank
ba"ances and to effect
a!!ro!riate ad*ustments to arrive
at the correct ba"ance of the
Cash in Banks account as at
year+end.
A task force as created under PPC
Office Order No. 11+,1 dated
November #1) #$11 and PPC Office
Order No. 1#+$% dated -anuary .)
#$1#) to reconci"e the discre!ancies
beteen the books of accounts and
bank ba"ances.
/ikeise) a 0emorandum +instruction
dated -une 11) #$1. re1uirin( a"" Area
Accountants to exert a"" efforts at their
end to reconci"e the Cash in Bank
accounts in their Books as issued by
PPC.
As re(ards the cash see!in(s from
the area accounts to the centra" office
main accounts 2for B3O) /BP and
PP4B5) here some transfers ere
not taken u! in their Books due to
difficu"ty in securin( the Bank
4tatements and6or see!in(
transactions) the Bookkee!in(
3ivision i"" be !rovidin( the Area
Offices ith the see!in( transactions
2year by year) startin( ith the most
recent year don to !rior years5 to aid
them in the reconci"iation of their
Cash in Banks accounts.
Reiterated in Comments and
120
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
Observations No. 21 of Part II.A of
the Report.
Part II.A of
Comment &
Observation
No. #
Cash Advances (ranted at the
Centra" Office and 'e(iona"
Offices of PPC tota"in( P1&.78
mi""ion remained un"i1uidated
contrary to 4ection 98 of
Presidentia" 3ecree 177% and
4ections 7.1.# and %.9 of COA
Circu"ar No. 8,+$$#.
There shou"d be strict monitorin(
of outstandin( cash advances.
Ca"" the attention of the officers
and em!"oyees ith cash
advances hich are sti""
outstandin( beyond the
!rescribed !eriod. Co""ection bi""
or demand "etters shou"d be sent
to concerned officia"s and
em!"oyees) otherise) their
sa"aries sha"" be ithhe"d unti"
their un"i1uidated cash advances
are fu""y sett"ed.
PPC shou"d strict"y enforce the
!rovision of 4ection 98 of
Presidentia" 3ecree No. 177%
and 4ections 7.1.# and %.9 of
COA Circu"ar No. 8,+$$#.
At the PPC+Centra" Office) a
0emorandum to a"" concerned officers
and em!"oyees dated October $1)
#$1# as issued re1uirin( them to
sett"e a"" accountabi"ities thru
submission of !ertinent su!!ortin(
documents to the Accountin( 3ivision.
Continuous efforts ere exerted
durin( C: #$1# to re1uire the
accountab"e officers and em!"oyees
to sett"e their cash advances) such as)
deductin( from their sa"ary the
unex!ended ba"ances of their cash
advances) and issuin( a second
demand "etters to active accountab"e
officers.
In the Area Offices) a 0emorandum
dated -une 17) #$1. as issued for
the Area Offices to !re!are and serve
fina" demand "etters to the
accountab"e officers and effect sa"ary
deductions) if !ossib"e.
Reiterated in Comments and
Observations No. 22 of Part II.A of
the Report.
Part II.A of No e"imination of reci!roca" Constitute a committee In addition to the created task force
121
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
Comment &
Observation
No. .
accounts cou"d be effected in
the conso"idation of the
financia" statements of the
PPC Centra" Office and
'e(iona" Offices due to
unreconci"ed discre!ancies of
these accounts existin( since
#$$$) hich reached
P7)7,8.71 mi""ion as of
3ecember .1) #$11.
com!osed of re!resentatives
from ;enera" Accountin(
3e!artment 2;A35) 0oney Order
4ervice 20O45) Cash
0ana(ement 3ivision) Posta(e
3ivision and 'e(iona" Offices
ho i"" be tasked to conduct the
re(u"ar reconci"iation of (enera"
"ed(er and subsidiary "ed(ers of
both Centra" Office and 'e(iona"
Offices) to ensure that
discre!ancies hich have "on(
been unreconci"ed be identified)
reconci"ed and ad*usted
accordin("y.
Create reci!roca" sub+account
codes for the use of both ;A3
and 'e(iona" Offices< Accountin(
4ection to record transactions
affectin( the 3ue to Centra"
Office and 3ue from the 'e(iona"
Offices accounts) such that)
transactions affectin( fund
transfers) see!in( in of
remittances) issuances 6 returns
of stam!s) transfers of fixed
assets6centra""y !rocured
su!!"ies and other inter+office
transactions i"" be assi(ned a
sub+account each !er 'e(iona"
Office for easy reconci"iation.
The use of sub+account code i""
faci"itate) easy identify and
under PPC Office Order No. 11+,1
dated November #1) #$11 and PPC
Office Order No. 1#+$% dated -anuary
.) #$1#) PPC issued 0emorandum
Circu"ar No. 1#+$7 dated -anuary 1&)
#$1# for the va"idation of accountin(
entries of the 3ue to6from Accounts.
The !ro!er accountin( of 3ue from6to
2reci!roca" accounts5 as addressed
throu(h the issuance of PPC Circu"ar
No. 1.+1$ dated 0arch 1%) #$1.. This
circu"ar aims to estab"ish uniformity in
the accountin( of the inter+office
transactions.
The Bookkee!in( 3ivision (rou! i""
be c"ose"y coordinatin( ith the Area
Offices in the reconstruction and
reconci"iation of the accounts.
Reiterated in Comments and
Observations No. 27 of Part II.A of
the Report.
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2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
dissect unreconci"ed com!onents
of 3ue to Centra" Office63ue from
'e(iona" Offices accounts.
Im!rove the interna" contro"
!rocedures re(ardin( the fund
transfers from the Centra" Office
to 'e(iona" Offices and
see!in( in of cash from the
'e(iona" Offices to the Centra"
Office bank accounts) 3omestic
0oney Order c"earin( and other
interoffice transactions to ensure
com!"ete) accurate and time"y
recordin( in both books of the
Centra" Office and the 'e(iona"
Offices.
'e1uire the Centra" Office and
the 'e(iona" Offices to
coordinate ith their de!ository
banks to ensure that these banks
furnish them ith month"y bank
statements at the end of each
month in order to accurate"y and
time"y record fund transfers and
cash see!in( in from6to the
Centra" Office.
'e1uire the ;A3 to com!"ete"y
record in the subsidiary "ed(ers
of 3ue from 'e(iona" Offices
account the transactions
affectin( the account and cause
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2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
the !ostin(s on the PPC ebsite
for viein( and reference by the
different 'e(iona" Offices for
easy identification of variances.
Part II.A of
Comment &
Observation
No. 7
The settin(+u! of the so+ca""ed
=bad accounts> as not
deemed va"id as these
accounts ere used to =dum!>
accounts hich cou"d not be
reconci"ed) or those hich
cannot be substantiated
coverin( the !eriod from 188#
to #$11. These accounts
consisted of asset accounts
ith tota" ba"ances of
P1)#7$.,$ mi""ion) and
"iabi"ities and ca!ita" accounts
ith tota" ba"ances of P,%8.87
mi""ion) ith the difference of
P79$.,, mi""ion char(ed to
'etained ?arnin(s.

The PPC 0ana(ement shou"d
!rovide a cut+off !eriod for
transactions hich can be
rec"assified to Bad Accounts)
both in the Centra" Office and
'e(iona" Offices. ?nsure that
the ba"ances of Bad Accounts
are accurate"y and va"id"y
determined and ade1uate"y
su!!orted ith documentary
evidences to effect necessary
and va"id ad*ustments.
'e1uest for authority to rite+off
from the Commission on Audit for
account ba"ances) the va"idity)
accuracy and existence of hich
cannot be determined) due to
"ack of su!!ortin( documents or
any other va"id evidences.
In -une 1%) #$$, Circu"ar No. $,+$.
as issued to a"" 'e(iona" 3irectors
and 'e(iona" Chief Accountants
(uide"ines to c"ean u! certain
accounts in the ba"ance sheet hich
inc"udes !resentation of Bad Accounts
in the (enera" "ed(er) thus !rovidin(
C: #$$& as the cutoff !eriod for the
transactions hich can be rec"assified
as bad accounts.

Bad Accounts are account
transactions6ba"ances hich ere not
!ro!er"y accounted and not
ade1uate"y su!!orted ith va"id
documents. These accounts i"" be
!ro!er"y c"assified to their
corres!ondin( account and
accordin("y make necessary
ad*ustments in the Books to ref"ect its
correct ba"ances.
A re1uest for rite+off i"" be !re!ared
for account ba"ances u!on
estab"ishin( its va"idity for rite+off.
Reiterated in Comments and
Observations No. 20 of Part II.A of
the Report.
Part II.A of The correctness of the book Conduct re(u"ar reconci"iation of A task force as created under PPC
124
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
Comment &
Observation
No. %
ba"ance of Accounts
'eceivab"e + Internationa"
0oney Order 2Account No.
1#1+$.5 as at 3ecember .1)
#$11 in the amount of P9%..$
mi""ion cannot be ascertained
and remained unreconci"ed
over the years.
the (enera" "ed(er ba"ances of
the Accounts 'eceivab"e @
Internationa" 0oney Order)
Incomin( and Payab"es Others @
Internationa" 0oney Order.
Incomin( ith the summary
re!orts submitted by the 0O4 to
ensure that discre!ancies are
immediate"y identified and
ad*usted accordin("y.
'e(u"ar and c"ose coordination
beteen the !ersons invo"ved in
the recordin() reconci"iation and
monitorin( of the internationa"
money order transactions shou"d
a"ays be observed. A"so)
subsidiary "ed(ers for each
Aorei(n Posta" Administration
2APA5 account shou"d be
!re!ared re(u"ar"y to ensure that
the individua" ba"ance are
accurate"y stated and reconci"ed
ith the (enera" "ed(er.
Office Order No. 11+,1 dated
November #1) #$11 to reconci"e
discre!ancies in the books of
accounts.
Part II.A of
Comment &
Observation
No. &
The Payab"es Other+3omestic
0oney Order account)
amountin( to P#)8$...$ mi""ion
remained unreconci"ed over
the years.
'econci"e the Payab"es Others+
3omestic 0oney Order account
ith the tota" Cash+Co""ectin(
Officers and Cash in Bank
ba"ances for 0oney Order Aund)
net of Phi"hea"th !remium
co""ections) in accordance ith
the (uide"ines set forth under
Artic"e BCII) 4ection 1 of the PPC
A task force as created under PPC
Office Order No. 11+,1 dated
November #1) #$11 to reconci"e
discre!ancies in the books of
accounts.
125
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
3omestic 0oney Order 4ystem
0anua".
Pre!are schedu"e of outstandin(
money orders issued as of
3ecember .1) #$11 as basis for
the !re!aration of Bank
'econci"iation 4tatements to
arrive at the correct ba"ance of
the account) Payab"es Others+
3omestic 0oney Order ith the
fo""oin( detai"sD
E 4eria" Number
E Amount
E 3ate Issued
E 3ate C"eared
E 'emarks
Part II.A of
Comment &
Observation
No. ,
The va"idity of the ba"ances of
Accounts 'eceivab"e
Internationa" Accounts and
Accounts Payab"e+
Internationa" Accounts as at
year+end as doubtfu" due to
the "on( unreconci"ed
discre!ancies in the amount of
P&.&.91 mi""ion and P,1..8#
mi""ion) res!ective"y) beteen
the ba"ances of the (enera"
"ed(ers and subsidiary
"ed(ers.
'e1uire ;A3 and the
Internationa" Accounts 3ivision
2IA35 !ersonne" to coordinate
efforts to ana"yFe) trace and
reconci"e variances beteen the
;/ and 4/ ba"ances of the A6')
Internationa" Accounts and A6P)
Internationa" Accounts. 0onth"y
reconci"iation must be done in
accordance ith Para(ra!h #2a5
4ection 799 of the ;AA0)
Co"ume II.
?nsure that "iabi"ities for
internationa" are conveyance ith
air"ine com!anies are correct"y
3ue to the vo"ume of transactions for
internationa" mai"s) the Bookkee!in(
3ivision) Accountin( 3e!t. is formin(
a reconci"iation (rou! com!osed of
the Officia" Person 'es!onsib"e
2OP'5 + Int<" Accounts 3ivision and
Bookkee!in( 3ivision to determine
the extent of the reconci"iation
!rocess and effect the corres!ondin(
ad*ustments in the Book entries.
The Bookkee!in( OP' i"" !rovide
the reconstruction of the accountin(
entries made.
The Int<" Accounts OP' i"" !rovide
126
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
accrued as A6P) Internationa"
Accounts to !revent the
existence of abnorma" or
ne(ative ba"ances and ensure
correctness of ba"ances for the
affected accounts.
Aormu"ate ritten !o"icies6
!rocedures6(uide"ines to be
observed by ;A3 and IA3 in the
recordin( and accountin( for A6')
Internationa" Accounts and A6P)
Internationa" in order to achieve
uniformity and synchroniFation in
the recordin( of transactions and
!revent further discre!ancies
beteen the records of both
3ivision.
the necessary identification of the
transactions and su!!ortin(
schedu"es to ad*ust the ori(ina"
accountin( entries made.
Reiterated in Comments and
Observations No. 24 of Part II.A of
the Report.
Part II.A of
Comment &
Observation
No. 9
Continued "ack of "e(a" action
by PPC toards sett"ement of
the COA disa""oance on the
refund made in November
#$$. to PPC G4A of H1.$.#
mi""ion or P7%..% mi""ion
com!romised the restitution of
the same in favor of PPC.
?nforce sett"ement of N3 No.
#$$%+$$12#$$.5 throu(h the fi"in(
of civi" and crimina" cases a(ainst
PPC G4A and the !ersons "iab"e
for authoriFin( the disa""oed
refund to PPC G4A.
127
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
Part II.A of
Comment &
Observation
No. 8
Confirmation of the year+end
ba"ances of six 2&5 Aorei(n
Posta" Administration APA
accounts yie"ded variances of
43' 17.#& mi""ion or P8&&.8&
mi""ion for A6') Internationa"
Accounts and 43' %.%$9
mi""ion or P.,...8 mi""ion for
A6P) Internationa" Accounts
hen com!ared to their
res!ective ba"ances in PPC<s
books of accounts.
Ie recommend that the amounts
!er books be reconci"ed ith the
ba"ances confirmed by APAs to
ensure correctness and va"idity
of recorded ba"ances of A6'+
Internationa" Accounts and A6P+
Internationa" Accounts.
?xert extra efforts to verify the
unidentified net !ayments from
the APAs hose remittances are
fu""y credited to A6'+ Internationa"
Accounts and ad*ust A6P+
Internationa" Accounts for the
error in the offsettin( made on
the corres!ondin( !ayab"es by
the sett"ements made by the
APAs.
A task force as created under
Phi"!ost Office Order No. 11+,1 dated
November #1) #$11 to reconci"e
discre!ancies in the books of
accounts. Continuous reconci"iation is
bein( done at the Accountin( Office
and Internationa" Accounts.
3irect"y re"ated to the Int<" 0ai"
Accounts reconci"iation.
(Reiterated in Comments and
Observations No. 9 of Part II.A of
the Report
Part II.A of
Comment &
Observation
No. 1$
The accuracy) va"idity and
existence of Accounts
'eceivab"e+Posta(e Char(e
Account 2PCA5 cannot be
re"ied u!on due to existence of
discre!ancy beteen the
(enera" "ed(er and subsidiary
"ed(er ba"ances tota"in( to
P,.8$ mi""ion) dormant6inactive
and bad accounts amountin(
to P.1.97 mi""ion) and the
inade1uacy in the !rovision for
A""oance for 3oubtfu"
Accounts 2.$1+$.5.
4trict"y maintain u!dated and
!ro!er"y !re!ared subsidiary
"ed(ers of a"" the individua" PCA
accounts to faci"itate (eneration
of re"iab"e information on
Accounts 'eceivab"e Trade @
PCA inc"udin( the immediate
identification) reconci"iation and
ad*ustments of discre!ancies in
the books.
Continuous"y revie and eva"uate
the ba"ances of its Accounts
'eceivab"e Trade @ PCA throu(h
re(u"ar a(in( of the account and
Partia""y Im!"emented.
PPC a"so re!orted im!rovements in
its co""ections herein the outstandin(
ba"ance over 1#$ days as reduced
from &&J to %&J and the tota"
outstandin( ba"ances from C: #$11
amountin( to P#8#)$,&)997.&% as
reduced to P171),%9)%8&.$$
e1uiva"ent to %J im!rovement on
co""ections for C: #$11.
4tudy on the settin( u! of A""oance
for 3oubtfu" Accounts is on(oin(.
4tatistics on the !ercenta(e of
128
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
affect the necessary ad*ustments
to be ab"e to fair"y !resent this
account at its net rea"iFab"e
va"ue.
Aor the accounts hich have
been verified as bad debts or bad
accounts) the PPC shou"d
consider ritin(+off these
accounts in accordance ith
4ection .7 of Presidentia" 3ecree
177%) COA Circu"ar No. 8#+.,%
and COA 'eso"ution No. 9$+1##
dated A!ri" #.) 189$.
Issue accountin( !o"icies and
(uide"ines in the settin(+u! and
!eriodic assessment of the
ade1uacy of A""oance for
3oubtfu" Accounts of Accounts
'eceivab"e Trade @ PCA and
other receivab"es takin( into
consideration re"evant factors
such as the a(in( of accounts
receivab"es) co""ection
ex!eriences or co""ectabi"ity)
ex!ected "oss ex!eriences) etc.
to determine the ade1uate "eve"
of A""oance for 3oubtfu"
Accounts to be reco(niFed.
co""ectabi"ity and recovery of these
'eceivab"es are taken into
consideration. A"so considered is the
existin( !o"icy on the PCA in
estab"ishin( the terms and a(in( of
the receivab"es.
(Reiterated in Comments and
Observations No. 2! of Part II.A of
the Report
Part II.A of
Comment &
Observation
The ba"ance of the account
0erchandise Inventory+
Phi"ate"ic items amountin( to
'evie the fixed accountabi"ities
of custodians6te""ers and reduce
it to reasonab"e amounts to
Aor Com!"iance.
129
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
No. 11 P.9.%$ mi""ion as overstated
by P.%.11 mi""ion re!resentin(
the difference beteen the
face va"ue and cost of the
Phi"ate"ic Items Inventory.
easi"y determine and account for
their res!ective accountabi"ities.
The te""ers6custodians shou"d
indicate the cost of the !hi"ate"ic
stam!s as indicated on the
'e1uisition and 4a"es6Issue 4"i!s
u!on remittance of sa"es to the
cashier hich i"" be the basis for
recordin( the amount of sa"es)
reduction of the Inventory and
re"ated costs.
0ake the necessary ad*ustments
to record the reversion of
!hi"ate"ic stam!s to re(u"ar
!osta(e stam!s) herever
necessary) to effect the reduction
in the amounts and 1uantities of
stam!s inventory.
Phi"ate"ic items hich are
s!oi"ed6dama(ed and can no
"on(er be so"d shou"d be
dis!osed and make the
necessary ad*ustments
accordin("y to reduce their
amounts and 1uantities.
Phi"ate"ic items that are ke!t in
the stam! vau"t and sti"" in the
custody of the custodians6te""ers
ho ere refrained from se""in(
shou"d be !ro!er"y accounted for
and turned+over to the stam!
4tream"inin( of the functions of the
custodians is underay.
(Reiterated in Comments and
Observations No. 2" of Part II.A of
the Report
130
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
vau"t custodian for distribution
and transfer to the 'e(iona"
Offices.
Part II.A of
Comment &
Observation
No.1#
Te""ers mannin( the 1,
extension !ost offices in NC'
not bonded. A"so) the
assi(ned drivers to the
Postmaster or staffs thou(h
not bonded nor officia""y
desi(nated as co""ector)
co""ected sa"es co""ections
from the te""ers of seven
extension !ost offices ithout
!ro!er ackno"ed(ement.
Aurther) te""ers in the ?POs
ere a""oed to brin( home
cash co""ections at ni(ht) after
the cut+off time of !ick+u! or
remittance) for safe+kee!in()
hence) ex!osin( cash
co""ections to risks of theft)
robbery or ho"du!.
4a"es6issuance of Posta"
identification Cards 2PI3s5 in
certain ?POs ere not fu""y
covered by the
corres!ondin("y issued Officia"
'ecei!ts) ith the unrecei!ted
!ortion of the co""ection
ran(in( from P,$.$$ to
P#$$.$$ ere a""e(ed"y
a""otted for notaria" fees)
Adhere to the !rovisions of
4ections 1$1 of Presidentia"
3ecree No. 177% hich re1uires
that every accountab"e officer
sha"" be !ro!er"y bonded in
accordance ith "a. Aurther)
on"y te""ers occu!yin( !ermanent
!ositions shou"d be a""oed to
man ?POs.
Consider o!enin( bank accounts
in ma""s here ?POs are housed
to avoid the risky !ractices of
hand"in( cash co""ections.
Co""ectin( officers shou"d issue
officia" recei!t e1uiva"ent to the
fu"" amount so received by them
in accordance ith 4ection &9 of
Presidentia" 3ecree No. 177%.
Cashiers of the !rinci!a" !ost
office shou"d re1uire the
submission of !eriodic statement
of accountabi"ity for accountab"e
forms and the use of an officia"
cashbook to serve as record
book of financia" transactions of
?POs under his6her su!ervision.
0oreover) he6she shou"d at a""
times va"idate the correctness of
Partia""y Im!"emented.
PPC issued a 0emorandum dated
November ,) #$1# to a"" !ostmasters
re1uirin( them to submit immediate"y
name of em!"oyees desi(nated as
accountab"e officers for confirmation
by this Office and in order for them to
be !ro!er"y bonded.
PPC reiterated the issuance of
0emorandum ith re(ards to the
issuance of Officia" 'ecei!ts for a""
co""ection of sa"es on Posta"
Identification Cards.
PPC is no fina"iFin( the re!ort
format for 3ai"y Posta" Te""er 4a"es6
Co""ection 'e!ort here indicated
therein are the cate(ory6kind of
services) the 1uantity of mai"s
received) the amount) the inventory
of accountab"e forms6items and the
ackno"ed(ement recei!t !ortion by
the Cashiers6 Postmasters for
im!"ementation.
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2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
documentary stam!s)
"amination fees) !hoto
services) etc.
The Cashier fai"ed to va"idate
the re!orted sa"es of the
te""ers6accountab"e officers in
the extension !ost offices.
A"so) te""ers in ?POs ere not
maintainin( cash recei!ts book
nor submittin( !eriodic
statement of accountabi"ity for
accountab"e forms.
the re!orted sa"es of te""ers !rior
to acce!tance of co""ections or
re!"enishment for !ro!er
accountin( and monitorin( of
cash co""ections.
Part II.A of
Comment &
Observation
No.1.
Aor Ca"endar :ear #$11)
officia"s of the Phi"i!!ine
Posta" Cor!oration ho ere
!rovided com!any service
vehic"es sti"" received the fu""
amount of their 'e!resentation
and Trans!ortation
A""oances hich is not in
accordance ith COA Circu"ar
No. 88+$$# dated -une 1%)
1888 1uotin( 4u!reme Court
ru"in( in the case of =Aida
3omin(o vs. Commission on
Audit> under ;.'. No. 11#.,1
dated October ,) 1889.
?n*oined a"" PPC Officia"s to
either use com!any service
vehic"e and sto! co""ectin( the
trans!ortation a""oance or (ive
u! the com!any issued service
vehic"e to co""ect the fu"" amount
of their 'ATA) thereby)
subscribin( to the ru"e of
4u!reme Court as cited in COA
Circu"ar No. 88+$$# dated -une
1%) 1888. Aurther) enforce
com!"iance to 4ection ..1.1.9 of
CO00I44ION ON AG3IT
CI'CG/A' No. 8&+$$7 dated
A!ri" 18) "88& hich states that
under no circumstances shou"d
fue" be issued to !rivate"y oned
motor vehic"es.

PPC to revie and im!"ement COA<s
recommendation.
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2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
Part II.A of
Comment &
Observation
No.17
Tenty+to 2##5 disbursement
vouchers for the !ayment of
the first sa"aries of the ne"y
hired6transferred em!"oyees
and the initia" !ayment for
services rendered by
consu"tants and contractua"
em!"oyees did not inc"ude or
contain Box A hich re1uires
the certification of the Chief
Accountant as to the
com!"eteness and !ro!riety of
su!!ortin( documents.
Inc"ude in the standard
(overnment form for
3isbursement Coucher Box A)
hich re1uires a certification of
the Chief Accountant that
su!!ortin( documents attached
to 3Cs are com!"ete and !ro!er.
Not yet Im!"emented
Part II.A of
Comment &
Observation
No.1%
The Cor!oration has not
im!"emented in fu"" the
com!ensation ad*ustments to
im!"ement the modified 4a"ary
4chedu"e for civi"ian !ersonne"
in the nationa" (overnment
covered by 'e!ub"ic Act No.
&,%9) as amended) !articu"ar"y
the 4a"ary 4tandardiFation
/a . 244/ .5) hich sha"" be
im!"emented in four 275 year"y
tranches startin( -u"y 1) #$$8.
Accrue the sa"ary differentia"s for
the !eriod -u"y 1) #$$8 to
3ecember .1) #$$8 in
accordance ith ?xecutive Order
No. 911) Nationa" Bud(et Circu"ar
No. %#1 and PPC Board
'eso"ution No. #$1$+$7.
PrioritiFe bud(etary tar(ets and
formu"ate sa"ary schedu"es to
fu""y im!"ement the !ayment of
the first to fourth tranches as
!rovided for in the various
?xecutive Orders and Nationa"
Bud(et Circu"ars issued for the
four+year im!"ementation of 44/
..
Coordinate ith the 3B0 on the
im!"ementation of the !ro!osed
sa"ary increase schedu"es from
Not yet im!"emented.
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2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
the first to fourth tranches of 44/
. and to be ab"e to source the
re1uired fundin( for the !ayment
of the sa"ary increases for the
PPC em!"oyees.
Part II.A of
Comment &
Observation
No.1&
0ana(ement continuous"y
fai"ed to !rovide reasonab"e
!ercenta(e of its #$11 bud(et
for the ;ender and
3eve"o!ment 2;A35
!ro(rams) thus) de!rivin( the
Cor!oration and its em!"oyees
of the intended benefits had
sufficient amount been
a""ocated for the !ur!ose.
Ie recommend that PPC
formu"ates a 2;A35 P"an
desi(ned to em!oer omen
and address (ender issues in the
Cor!oration and inte(rate the
same in the re(u"ar activities of
the A(ency uti"iFin( at "east a
substantia" !ortion) if not five
!ercent 2%J5 of the A(ency<s
year"y a!!roved COB.
Not yet im!"emented.
(Reiterated in Comments and
Observations No. !0 of Part II.A of
the Report
Part II.A of
Comment &
Observation
No.1,
The ;overnment<s revenue
(eneration !ro(ram had been
re"i(ious"y im!"emented by
PPC) in consonance ith
?xecutive Order No. &%1) as
im!"emented under BI'+3OA+
3B0 -oint 'e(u"ation 1+#$$1.
Continuous"y exert efforts in the
im!"ementation of the revenue
(eneration !ro(ram of the
;overnment) com!"yin(
re"i(ious"y ith the time"y
co""ection and remittance of
income due to the Nationa"
;overnment in com!"iance ith
?xecutive Order No. &%1 and
BI'+3OA+3B0 -oint 'e(u"ation
1+#$$1.
None.
Part II.A of
Comment &
Observation
No.19
Audit disa""oance and
sus!ensions amountin( to
P1$.87 mi""ion and P1.1.
mi""ion) res!ective"y) remained
unsett"ed and uncom!"ied as
?xhaust extra efforts to enforce
co""ections of the disa""oed
amounts. 3etermine the officers
and em!"oyees ho a!!roved
and !rocessed the disa""oed
A committee on COA Audit
3isa""oances) 4us!ensions and
Observation 0emoranda as created
under PPC Office Order No. 1#+#7
dated 0arch 1) #$1# to ex!edite the
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2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
of 3ecember .1) #$11. c"aims) inc"udin( those ho
a""oed and disa""oed amounts
not to be deducted from the
re(u"ar !ayro"" and make them
accountab"e therefore.
reso"utions of the 3isa""oances and
COA AO0s.
#$1$ AA')
Part II.A of
Comment &
Observation
No.19
3e"ayed remittances of ;4I4)
Pa(+IBI; and Phi"Kea"th
contribution is in vio"ation of
existin( "as) ru"es and
re(u"ations and has resu"ted to
the accumu"ation of
outstandin( substantia"
ba"ances of P1&,..& mi""ion
3ue to ;4I4) P#%.%. mi""ion
3ue to Pa(+IBI; and P#9
mi""ion 3ue to Phi"Kea"th as of
3ecember .1) #$1$.
The PPC must observe time"y
remittance of (overnment shares
and !ersona" deductions to the
;4I4) Pa(+IBI;) and the
Phi"Kea"th to avoid incurrence of
!ena"ties6surchar(es and to
assure that PPC em!"oyees
en*oy the corres!ondin( benefits
due them.
'evie ) ana"yFe and ad*ust the
books of accounts to avoid the
existence of abnorma" as e"" as
unreconci"ed ba"ances.
Partia""y im!"emented.
(Reiterated in Comments and
Observations No. 29 of Part II.A of
the Report
#$1$ AA')
Part II.A of
Comment &
Observation
No.19
The ba"ance !er (enera"
"ed(er of the account
Phi"ate"ic 4tam!s Inventory as
of 3ecember .1) #$1$ va"ued
at cost amountin( to P...7.
mi""ion is overstated as
com!ared to the inventory on
hand !er accountab"e officers
amountin( to P...#, mi""ion
va"ued at face va"ue !er
resu"ts of the !hysica" count
conducted by the Accountin(
3ivision durin( the year.
'e1uire the accountab"e officers
to submit 0onth"y 'e!orts of
Phi"ate"ic 4tam!s Accountabi"ity
20'P4A5 and im!ose
disci!"inary measures for fai"ure
to com!"y ith this re1uirement.
The te""ers6custodians shou"d
indicate the cost of Phi"ate"ic
4tam!s 4a"es 4"i!s u!on
remittance of sa"es to the
Cashier hich i"" be the basis
for recordin( the amount of
(Reiterated in Comments and
Observations No. 2" of Part II.A of
the Report
135
2011 AAR Comment and Obe!"at#on Re$ommendat#on Stat%&A$t#on Ta'en
sa"es) reduction) of the Inventory
and re"ated costs.
0ake the necessary ad*ustments
to record the reversion of
unso"d6undis!osed !hi"ate"ic
stam!s to re(u"ar !osta(e
stam!s) herever necessary.

136