CoA flags DAR for P24.5-M unpaid contributions

CoA flags DAR for P24.5-M unpaid contributions | Daily Tribune

The Commission on Audit (CoA) has flagged the Department of Agrarian Reform (DAR) for failing to remit a total of P24.5 million in mandatory monthly employee contributions to the Government Service Insurance System (GSIS), a portion of which has been withheld since 2011.

In its latest audit report, the CoA found that 16 DAR offices had outstanding remittance balances totaling P24,451,417.83 as of 2023, in violation of Sections 6 and 7 of Republic Act 8291, also known as the GSIS Law.

Audit findings revealed that in the DAR Provincial Office in Northern Samar, which accounted for P445,000, remittances did not match the exact amounts withheld due to increases in employee salaries. These salary adjustments were not immediately reflected in the amount billed to the agency by GSIS.

Meanwhile, in the DAR Regional Office of Eastern Visayas, auditors found a balance of P381,680.23 that had been on record since 2011.

According to RA 8291, contributions should be directly remitted by the employer to the GSIS within the first 10 days of the calendar month following the month to which the contributions apply.

“The non-remittance of amounts withheld from salaries for GSIS premiums and loan payments may deprive employee-members of benefits and other claims upon loan availment or retirement,” the CoA emphasized.

In addition to the GSIS issue, the CoA also noted that 11 DAR offices were non-compliant with the Pag-IBIG Fund Law, failing to remit P1.6 million in employee contributions and loan payments as of 2023.

DAR officials, however, assured auditors that they would review the GSIS dues to make the necessary adjustments.

Furthermore, the audit found that 12 DAR offices had failed to remit P1.085 million in contributions to the Philippine Health Insurance Corporation (PhilHealth), in violation of the National Health Insurance Law.

The report also highlighted that eight DAR offices had unremitted balances totaling P2.365 million that were withheld from compensation income and government purchases. Additionally, three offices failed to withhold taxes on honoraria paid to Provincial Agrarian Reform Coordinating Committee officers, violating various tax regulations.

“This non-compliance is primarily due to the lack of proper turnover of records and responsibilities between incoming and outgoing accountants, as well as the absence of regular reconciliation of reports and records,” the audit team stated.