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