EXECUTIVE SUMMARY OF THE
The Land Bank of the Philippines (LBP), Imus Branch was established by virtue of LBP Board Resolution No. 91-318 on December 21, 1991 and by the Central Bank on May 21, 1992. It underwent a series of changes in the operational set-up over the years. After the dissolution of the Loans and Discount Division on March 1, 1996 in favor of the creation of Provincial Lending Center (now called Area Lending Center) housed in Silang Branch, the branch was converted into Unified System Project (USP) on July 1, 1996 establishing the Cooperative Loans and Services Division which was finally transferred to Tagaytay City Branch sometime in May 1999. The branch to date served as a Cash Center of all LBP branches in the province pursuant to Unnumbered Memorandum of the AVP - Cash Operations Department servicing their cash requirements beginning June 17, 1997.
The latest innovations in the banking operations was the issuance of Executive Order No. 20 creating the Accounting Processing Centers (APC), APC I and APC II, under the direct supervision of Regional Head, Region IV D. It became operational on May 17, 1999. APC I is housed at Imus Branch. Clustered under APC I include Imus, Cavite, Dasmariñas and Rosario (CEZ) Branches. This concept will enable frontline personnel to focus on marketing and client servicing while the backroom staff concentrated on bookkeeping and accounting functions.
Total resources grew slightly by 4.25%, from
SCOPE OF AUDIT
The audit covered the accounts and operations of the branch in 1999. It included verification of accounts and financial reports, to a limited extent. A review of disbursements made in terms of compliance with existing bank’s and government rules and regulations was likewise undertaken. The results of the value-for-money audit conducted are covered by a separate report.
OPINION IN STATE AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS
The Auditor rendered an unqualified opinion on the fairness of the presentation of the financial statements of the Land Bank of Philippines, Imus Branch.
SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS AND FAVORABLE OBSERVATION
This year’s significant audit findings and observations are the following:
Stop the practice of assigning or fixing all properties owned by the branch to Property Officer in conformity with Section 102 of PD 1445. As much as possible, bank’s properties should be assigned to personnel actually using it or in charge for its custody.
Apply for an increase in the amount of bond enough to
cover the present cash accountability of
Closely coordinate with the respective clustered branches in-charge of the interbranch transactions to resolve the issue on float items so that proper classification of these accounts into specific asset/liability accounts in the Statement of Condition can be made. Observe strictly the required period within which to respond as provided under LBP-Primer on Inter-Office Accounting System.
Notable favorable audit observation is discussed below:
A substantial increase in government deposit was registered
in 1999 amounting to
The above together with other findings and recommendations contained in the report were discussed with concerned officials of the bank. Management’s views and reactions were considered in the report, where appropriate.
STATUS OF IMPLEMENTATION BY THE BANK OF PRIOR YEAR’S AUDIT RECOMMENDATIONS
Of the three recommendations contained in the 1998 Annual Audit Report, one or 33% was fully implemented. Compliance with regulations cited in the said report relative to the deficiencies in post-audit noted in post-audit is now being observed. The two remaining audit recommendations are still for compliance and reiterated in Part III of this report.