EMCOR, Inc.

RER Building, Nat'l Highway, Kalawag I,

Isulan, Sultan Kudarat, Philippines

POST AUDIT ENGAGEMENT CONFERENCE

December 09, 2021

Post audit engagement conference was called last December 09, 2021 held at EMCOR Isulan
branch furniture showroom via Zoom. This is to discuss all about audit report, what was found
during their audit in different aspects.

The meeting starts at exactly 5:00pm and was opened with an opening prayer lead by the store
supervisor Danny M. Cortez. The first reporter Joemar Hidalgo-Monterde who’s scope was
focus on cash (collection) and personnel. Before proceeding to his scope, he first discussed
about the mission of Internal Audit Department. Explained that they we're not here to just find
flaws and to punish employee but instead they were here to help us. To improve and correct
our practice if we’re doing it the wrong way not base on the policies systems and procedures of
the company. To help improve the operation of the store and to find ways and best practices.
Best practices that was not on the guidelines but can help improve the operation. Furthermore,
explains the flow or process of the audit, that happen after audit is that we have 15-day period
after we have receive the hard copy of audit findings to submit a REPLY to the audit report.
After the store submits their reply, the audit will verify and confirmed the said reply if it is really
taken action. After that some of the unresolved issue will be summarized and put on the PAMR
post audit monitoring report.

After discussing the mission of the Internal Audit Department, Sir Joemar proceeds to his topic
which was all about cash (collection) & personnel. For our daily advance deposit collection, we
have an average of 93% against last 2019 audit of 79%. Regarding with huge collection retained
in the vault dated August 10, 2021 (Muslim Holiday) of P34,774.00, August 28, 2021 of P63,617
and September 18, 2021 of P25,192.00, this was collection after USSC deposit cut-off 4:30pm.
There were also some DCCR variances due to cancelled official receipt & cash invoices.
Reflected also some incorrect booking of collection deposit to intended depository banks. Some
computerized official receipts with hand written but with attached memo. There was also one
manual field or that has no signature conformed by the payor portion. Altered or without
countersignature of customer & store officer. Collection remitted to the cashier nec=xt day.
Collection amount discrepancy in words & in figures. 19 errorneous encoding of series. Already
corrected before forwarding to ho – accounting. HC credit receipts signed by cashier in the
conformed by payor section, all manual issuance in the office are with memo, check
encashments are supported with encashment report duly approved by aurthorized officer.
Logbook on collection deposits have signatures acknowledge of the employee who handcarried
the amount to the bank or USSC. Delayed forwarding of DCCR for emcor & CTFSI dated August
28, 2021 since cashier reliever was not familiar in closing the transaction for the day.
PERSONNEL: store official time 8:00AM – 5:00PM. Attendance is done thru biometric scanning
system. Mr Carl Mark G. Untal resigned last November 2021, yet reflected on HR Roster. A total
of 96 minutes the total of man-hour lost during audit coverage 8/1/2021-10/6/2021. Last audit
of 2019 reflected 1 minute tardy involving 1 staff. 1 employee not reflected on HR roster
marlon ganal hired last 11/16/2021. That ends his report.

Next reporter was wensor gallego – plaza. Scopes was receivables, sold pre-owned units,
accountable forms. As of November 23, 2021 we have a total open accounts of P3,374,478.00
of the total open accounts with 90% or P3,021,246.1 representing Ctfsi . the total past due is
p348,485.9 or 10% AGAINST TOTAL OPEN ACCOUnts. CITP department contributes the biggest
in terms of amount of p309,484.00 ot 54.08 % against total past due. There were two (2)
Accounts with credit balances.

DOWN BALANCE IS P185,890.00 AS OF NOVEMBER 24, 2021. P70,523.00 OR 127 ACCOUNTS OF

WHICH were supplier’s Subsidy for the year 2021. Down balance w/ crdit balance for memo to
close miscellaneous income. Cust dep p11,500.00 as of November 24, 2021 including only
service department. Only 1 out of 9 pre owned unit sold below foreclosure price was not
presented w/ approval sheet. 1 Pre owned units foreclosed beyond 30days from vds date. 3 pre
owned unit foreclosed within 30 days from deposit date.

All class b & c preowned units were sold on installment were w/ approval from fso-ho. No pre-
owned units sold to fso-am/member of the appraising team or ex owner.

Accountable forms custodian Danny M. Cortez

Recon as of October 31, 2021 dr 1251-1300 fully used on 11/21/2021 & or carbonless 73651-
73700 fully used on 12/2/2021. Invoice documents w/ different address motorcycle chare sales
invoice manual. No missing series, no skipped issuance of receipts & invoices. No erroneous
encoding of receipts & invoices. End.

Last speaker was sir neal francis l. doronila. His scope was inventory & store facility. Work with
store inventory in charged joelmar a. nabatilan. Brandnew inventory as of December 1, 2021
was p8,028,183.23.

91 days & up aging ws p619,573.38 or 8% of the total inventories which was 2% below the
company’s standard of 10%. Bajaj re had the highest amount of p316,964.28 or 17% of it’s total
cost. Inventory interest as of 12/01/2021 was p6,195.73 summary of virtual inventory count
was 145 units or 26% of total inventory. 1 errorneously released unit released to marichel
bautista last 11/10/2021. Unit was confirmed by joelmar a. nabatilan. The actual unit invoice to
customer was reno 6z 5g with serial number 868311050367038 per si223000004040. Resulting
to short/over variance in the actual inventory count last 12/2/21. No defective inventory. No
variances due to incorrect serial number encoded. There were no deposited & pre-owned
inventories as of 12/01/21 during audit. Sales return for period covered 11/01/2020-
10/31/2021. 65 or 72% of the total credit invoices issued were due to human error. Credit
invoices due to human error are 15 or 0.28% against total invoices issued of (5,284) . last 2019
audit’s record on credited accounts due to human error were 15 or 0.30% of the total invoices
issued of 5,054. OUT OF 15 CREDIT INVOICES ISSUED DUE TO HUMAN ERROR, 6 OR 40% WERE
DUE TO ERRONEOUS AMOUNT/PRICE ENCODED.store staff who commited error was maribeth
v. clerigo. Store facilities transportation equipment a total of 8 actual vehicle as of 12/1/2021.
No unbooked unit. No missing, no expired vehicle registration, all units were covered w/
comprehensive insurance. All users of te units were w/ valid drivers license. Security & safety –
53/54 or 98% previous audit rate 39/48 or 81.25%. store vault is located in a place clearly
visible to the customers.