ILOILO City – The Commission on Audit (COA) has flagged this city government for its failure to remit P6.084 million in employees’ premiums and loan payments to the Government Service Insurance System (GSIS).
In its annual audit report, COA said the delay stemmed from ongoing verification of the amounts withheld and remitted.
However, the auditors said this process contradicts the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 8291 (overnment Service Insurance System Act of 1997) which mandates prompt remittance.
The lapse risks subjecting employees to penalties, surcharges, and interest, the auditors warned.
As of Dec. 31, 2023, the “due to GSIS” account reflected an un-remitted balance of P30.369 million, encompassing both employees’ contributions and the city government’s share.
Subsequent reviews by state auditors showed that P24.285 million was remitted by January 31, 2024, reducing the outstanding balance to P6.084 million.
The IRR outlines the obligations of government agencies regarding the timely remittance of contributions and loan amortizations to the GSIS.
Government agencies are required to remit both the employees’ and the agency’s share of GSIS contributions within the first ten days of the month following the month to which the contributions apply.
These remittances take precedence over all other financial obligations of the agency, except for the salaries and wages of its employees.
Government agencies must deduct the amounts directly from the fixed monthly compensation of employees including loan amortizations and premium payments such as optional, pre-need, and other non-life insurance.
The amounts deducted from employees’ compensation must also be remitted to the GSIS within the first ten days of the following month.
The remittances must be accompanied by supporting documentation in the form prescribed by the GSIS.
In addition, the auditors disclosed that the subsidiary ledger balances as of Dec. 31, 2023, revealed that negative balances totaling P2.446 million, indicating possible erroneous recording of amounts withheld and remitted.
Likewise, the auditors said that unreconciled amounts of P1.065 million, reflecting mispostings in the subsidiary ledgers of the member-employees.
The Government Premium Billing (GPB) and the accomplishment report were only submitted to the audit team on March 7, 2024, and March 22, 2024, respectively, beyond the prescribed timelines.
The Audit Observation Memorandum (AOM) No. 2024-014, dated March 22, 2024, was issued to the city government to formally document this audit finding and to prompt necessary action.
The COA has urged the city government to resolve the issue promptly to safeguard employees from financial repercussions and ensure compliance with legal obligations.
The auditors urged the city government to prioritize capacity-building initiatives by including comprehensive development programs in the Government Premium Billing (GPB), with a focus on training personnel to effectively identify and address gender-related issues in their plans and budgets.
Capacity development programs will empower personnel to craft and implement more effective gender-responsive plans and budgets, leading to meaningful progress in achieving gender equality, the auditors stressed./PN
