PART IV - STATUS OF IMPLEMENTATION BY THE CORPORATION OF PRIOR

YEARS AUDIT RECOMMENDATIONS

Out of the fourteen recommendations embodied in the 1997 Annual Audit
Report, two (2) or 14% were implemented, three () or 21% were partiall!
implemented and nine (9) or "4% were not implemented# $wo unimplemented
recommendations are reiterated in this report#
$he followin% are the si%nificant findin%s which were partiall! implemented
b! the corporation&
1# 'mpro(e efficienc! of the Accountin%
)epartment b! appointin% competent
accountin% mana%ers and trainin%
and*or recruitin% +ualified personnel
to do and*or update monthl! ban,
reconciliations and to ta,e up the
reconciled items in the boo,s#
-ot implemented# Additional
.ertified /ublic Accountants will be
hired for 1999 due to the re0
en%ineerin%*re0or%ani1ation bein%
underta,en b! mana%ement#
$a,e the necessar! action re%ardin%
the reconciliation, ad2ustment and*or
proper disposition*closure of these
dormant accounts in accordance with
.OA .ircular -o# 970331# 4ailure of
the officials*emplo!ees concerned to
compl! with this circular shall sub2ect
them to administrati(e disciplinar!
action in accordance with pertinent
pro(isions of /) 1445 and 6O 292,
series of 1977, of the Re(ised
Administrati(e .ode of the
/hilippines#
.oordinate with the )epartment of
$ransportation and .ommunications
()O$.), the 8ureau of the $reasur!
and the .ommission on Audit on the
con(ersion of the account balances of
the then /9O to the corporate boo,s
under the followin%&
a) :eneral 4und (131) 0 Re%ional
offices
b) Rehabilitation 4und (139)
c) )epositor! 4und (53)
d) 'nfrastructure 4und (137) /artiall! ad2usted under ;<
43
=373553 dated ;une 3, 1997#
e) 4orei%n Assisted >oan (132) /artiall! ad2usted under ;<
=373533 and =9"21" dated
4ebruar! 27, 1997 and )ecember
1, 1997, respecti(el!#
2# Reconcile records of indi(idual
canteen owners to those appearin% in
the //. boo,s of accounts#
-ot implemented#
?nderta,e reconciliation of the @one!
Order 4und accounts and ensure that
the same are fairl! presented in the
financial statements# 4urthermore,
)omestic and 'nternational @one!
Orders should be accounted for
separatel!#
/artiall! implemented# 'n the
mone! order reconciliation s!stem,
re%ional offices underta,e the
encodin% of mone! order issued
while @one! Order 9er(ice
encodes paid*ne%otiated @O
cards# 9ince the confi%uration of
the computers in the Re%ional
Offices lac,s the re+uired
specification of the reconciliation
s!stem, the computers cannot
cope with the (oluminous data,
hence inputted mone! orders
issued were not updated#
'ncomin% international mone!
orders and domestic mone! orders
are accounted for separatel!#
Aowe(er, collections from out%oin%
international mone! orders and
domestic mone! orders were
combined when deposited
considerin% that postmasters
maintains onl! one cash boo,#
# )eposit %o(ernment funds onl! in
%o(ernment financial institutions in
compliance with 9ection 11 of
:AA@, <olume ' and 9ection 1506 of
Republic Act -o# 7253, unless and
until the /hilippine .ommercial
'nternational 8an, is accredited b! the
-ational $reasurer as depositor! of
%o(ernment funds#
'mplemented# /.'8 was %i(en
authorit! b! the 89/ to accept and
maintain deposits from //. under
letter dated -o(ember , 1997
which will eBpire on -o(ember 29,
1997#
4# ?pdate recordin% of billin%s to 4/As /artiall! implemented# Recorded
44
up to )ecember 1, 1997, furnishin%
this office of the cop! of ;< ta,in% up
the transaction with complete
supportin% documents# @a,e
necessar! correction in the boo,s of
accounts to reflect the amount of A*R
as presented to or accepted b! 4/As#
)iscontinue the practice of recordin%
income and A*R based on estimates#
under ;< =39"15 dated
-o(ember 1, 1997#
)raw 2ournal (oucher to record
pa!ments made b! 4/As as shown in
AppendiB 4 and henceforth monitor
pa!ments made b! 4/As to ensure
proper recordin% thereof on a timel!
basis#
Ad2usted under ;< =39"944 dated
)ecember 1, 1997#
)raw 2ournal (oucher to ad2ust
erroneous recordin% of collections
shown in AppendiB : hereof# 'ndicate
details of accounts in the 9*> and
their e+ui(alent in 9)R, dollars and
pesos to facilitate reconciliation#
6nsure that a particular account is
closed upon full settlement#
Ad2usted under ;< =39"323 dated
)ecember 1, 1997#
Aenceforth, determine the details of
pa!ment before preparin% the
collection order co(erin% pa!ments
b! 4/As#
5. 'n(o,e 9ection 122 of /) 1445 re&
withholdin% of salaries until the! ha(e
complied with the re+uirements of the
.ommission#
-ot implemented
"# Re+uire the concerned officials to
refrain from recei(in% additional,
double or indirect compensation in
pursuance to 9ection 7 of Article 'C08
of the /hilippine .onstitution#
>i,ewise, re+uire the refund of the
allowances* frin%e benefits recei(ed
b! the concerned //. 8oard of
)irectors*Officers from the
aforementioned //. subsidiaries#
-ot implemented
45
7. 6nforce immediate settlement of the
audit suspensions and disallowances
totallin% /93,5"7,929 and
/2",15,375, respecti(el! in
accordance with 9ection 9#1 of the
Re(ised @anual on .98# Aenceforth,
ensure that %o(ernment auditin% rules
and re%ulations are strictl! complied
with before processin% claims and
effectin% pa!ments to minimi1e
suspensions and disallowance in
audit#
-ot implemented# $he /ostmaster
:eneral issued a memorandum to
the Office of the .orporate
9ecretar! dated ;anuar! 21, 1999
for their appropriate action#
7# Re+uire />4. to show the ori%inal
copies of deli(er! receipts*bills of
ladin% for the deli(ered items# 'n their
absence, ma,e representation with
/>4. officials to ma,e the necessar!
corrections to ad2ust the accounts of
//. pertainin% to the undeli(ered
items#
-ot implemented
.ause in(esti%ation into the
unaccounted deli(eries of /#1 million
includin% the recipients of the assets
who confirmed that the same were
not on hand or incomplete#
/artiall! implemented#
.losel! coordinate with />4. with
re%ard to the deli(er!*shipment of
(arious e+uipment and spare parts to
a(oid pa!ment of leasin% costs on
items not recei(ed b! the different
//. re%ional offices#
9# 6Bert all efforts to secure the
necessar! appro(al from the )8@ of
the /lantilla of /ositions of //.
emplo!ees#
-ot implemented# //. is now in
the process of Re0en%ineerin% of
its staffin% pattern
13# .ause the dissolution of the abo(e
subsidiaries# 'mpro(e the s!stem and
administration of the //.
departments*offices whose functions
are mere duplication of those of the
subsidiaries#
-ot implemented
46
11# 9ecure authorit! to purchase motor
(ehicles from the )epartment of
8ud%et and @ana%ement ()8@) in
order that //. can sa(e from pa!in%
taBes, customs and tariff duties and
other fees pursuant to 9ection 14 of
Republic Act -o# 754, also ,nown as
the D/ostal 9er(ice Act of 1992#E
>i,ewise, the .orporation would be
freed from incurrin% additional interest
eBpenses of 25% from leasin% these
motor (ehicles with />4.#
-ot implemented
@a,e representation with the />4. to
ma,e necessar! ad2ustments in the
billin% representin% the /17#2 million
ad (alorem taB alle%edl! paid to 8O.#
.ause in(esti%ation into the alle%ed
pa!ment of /17#2 million of ad
(alorem taB to 8O.#
$he case was alread! filed with the
Ombudsman#
12# 6Bert all effort to reali1e the
implementation of the /ostal
@echani1ation /ro2ect# 6nsure that
the loan shall be used solel! for the
mechani1ation and moderni1ation
pro%ram# /repare a report on what
acti(ities ha(e transpired toward the
full implementation of the pro%ram
based on tar%et and plan#
/artiall! implemented# //. is now
in the process of implementation of
the /ostal @echani1ation /ro%ram#
47