Browse > Home / Cagayan de Oro / Delay in paying P30 million GSIS remittances increased liabilities of City Hall workers –COA

Delay in paying P30 million GSIS remittances increased liabilities of City Hall workers –COA

September 26, 2008

By Lizanilla J. Amarga

The City Government of Cagayan de Oro has again been found to have delayed the turning over of Government Service Insurance System (GSIS) remittances which resulted to the accumulation of more current liabilities for City Hall employees and delay in the renewal of their loans.

The Commission on Audit (COA) under State Auditor Olivia Flores said GSIS premiums remittances have been delayed for 43 to 107 days in violation of GSIS Act of 1997, R.A. No.8291, resulting to unremitted balance of P29,614,683.71.

She cited how the above provision requires that each employer, including City Hall, shall remit directly to the GSIS the employee’s and employer’s contributions within the first ten days of the calendar month following the month to which the contributions apply.

Flores said the same law provides for “penal sanctions” which shall be imposed upon employers who fail to include the payment of contributions in their annual appropriations or otherwise fail to remit the accurate/exact amount of contributions on time, or delay the remittance of premium contributions to the GSIS.

“The heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance of premium contributions to the GSIS,” she said in her recently-released Annual Audit Report 2007.

Flores and her team revealed how the preparation of the GSIS remittance list was sometimes delayed for months due to technical problems with the program used in preparing the list.

She said their further analysis disclosed that despite the updated preparation of reports needed for remittances, disbursement vouchers and it’s supporting documents remained in the City Treasurer’s Office for a period of three to 32 days until the check issued was received by the GSIS.

“This practice resulted to accumulation of current liability and delay in the renewal of employees loan from the GSIS,” she said.

Flores said the City Treasurer has informed them that the full remittance was made in January and February, 2008.

She said City Hall told them that remittances was late in the second half of the year due to how only last Sept. 2007 did GSIS informed the City Government of the revisions in the old version of electronic remittance module.

Still, Flores recommended that the City Accountant monitor premium remittances and address immediately the cause of delay of remittances.

“Also, the City Treasurer should be advised to cause the immediate remittance thereof to the GSIS to avoid payment of penalties,” she said.

Written by admin · Filed Under Cagayan de Oro 

Comments

Got something to say?





Philippine Elections 2010

LIST OF CANDIDATES

Click this link to see all lists of candidates for the entire Philippines