The municipality withheld PhilHealth contributions from employees but the amounts paid to PhilHealth did not match the amounts withheld during the year. The records were not updated, and the final payment was about ₱1,900 more than the amount owed because PhilHealth wasn't told about a salary increase. These errors could cause problems when employees claim PhilHealth benefits.

Why It Matters

Recommended Actions

• Instruct the (a) Human Resource Management Officer to check the employee list uploaded in the EPRS to ensure that the list is correct and up to date
• And (ii) counter check the amounts of premiums due per employee on the generated SPA vis-à-vis the withheld per payroll to trace discrepancies
• And (b) the Municipal Accountant (i) to prepare the necessary detailed records at year end for proper monitoring
• And (ii) recognize unremitted contributions and loan amortization as payables using the Due to PhilHealth account.

Original Audit Finding Excerpt

"From the above data, the agency has been remitting its payables monthly to Philhealth within due dates. However, as in previous years, the amount withheld and remitted did not tally throughout the year. It is to be noted that monthly remittances were based on the generated Statement of Premium Account (SPA) as required by PhilHealth Circular No. 2016 -0008. It can be said that the discrepancies were due to un -updated employee information in the Electronic Premium Remittance System (EPRS)."

Source Document