MANILA, Philippines — The Division of Training (DepEd) has but to remit its obligatory contributions to the Philippine Well being Insurance coverage Corp. (PhilHealth) and Dwelling Growth Mutual Fund (Pag-Ibig) totaling P685.9 million final yr to the detriment of its staff, in line with a report by the Fee on Audit (COA).
The determine represents greater than P503.4 million in PhilHealth premiums whereas Pag-Ibig contributions and mortgage amortizations that have been deducted from the payroll of DepEd personnel amounted to P183 million.
The unpaid stability, the COA famous, was an mixture “from prior years” as much as Dec. 31 final yr.
In its 2023 audit report on DepEd, state auditors identified that administration’s failure to well timed remit the contributions “disadvantaged the members of the availment of the privileges and advantages due them.”
The affected DepEd personnel may additionally face doable penalties and surcharges for the delay or nonremittance of contributions, they added.
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In calling out DepEd, the COA cited the Nationwide Well being Insurance coverage Act, which requires employers to remit a member beneficiary’s month-to-month contribution on or earlier than the prescribed date. Failure to take action would maintain the employer chargeable for reimbursement when staff avail themselves of PhilHealth advantages.
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Danger of penalties
A breakdown of the unpaid PhilHealth premiums confirmed that DepEd’s regional workplace in Zamboanga Peninsula had the best stability at P143.4 million, adopted by the regional places of work in Jap Visayas and Bicol area at P68.7 million and P64.2 million, respectively.
On the company’s Metro Manila workplace, P23.8 million has but to be turned over to the state well being insurer.
For the Pag-Ibig contributions, the COA warned that the nonremittance of employees’ contributions would topic the employer to a “penalty of three p.c monthly payable from the date the contribution (was) due till paid,” as stipulated within the Dwelling Growth Mutual Fund Legislation of 2009.
DepEd’s Jap Visayas regional workplace had the largest chunk of the unpaid Pag-Ibig deductions at P40.2 million, adopted by the Cagayan Valley and the Bicol regional places of work at P26.7 million and P22.04 million, respectively.
Corrective motion
The COA mentioned it beneficial, to which the DepEd administration agreed, to “remit instantly” the withheld contributions as of end-2023 to stick to pertinent legal guidelines and “keep away from the chance of penal sanctions.”
It additionally requested the company to “instantly coordinate” with accountants and anxious personnel for identification of the affected staff.
The unremitted premiums to PhilHealth and Pag-Ibig are a part of the audit findings on DepEd for the yr 2023, the final full yr of Vice President Sara Duterte as secretary.
The identical report had referred to as out DepEd by means of the issuance of a discover of suspension, or a “momentary disallowance,” for the P10.1 billion value of disbursements from its 2023 finances that gave the impression to be unlawful or improper.
Except the transactions are justified by the accountable authorities places of work or businesses, the COA will ultimately direct DepEd to return the suspended quantity by means of a discover of disallowance (ND).
The COA already issued NDs on a complete of P2.2 billion in bills that DepEd was compelled to remit to the federal government as of finish of final yr.