POLICY AND PROCEDURAL GUIDELINES NO. _273-14__
FUNCTIONAL AREA:
Loans
DISTRIBUTION:
All Senior Vice Presidents
All Vice Presidents
Department/Branch Managers
Operations Groups
Financial Management Group
Information Technology Services Group
Legal Services Group
Controller Group
Corporate Services Group and Corporate Planning
Office
Internal Audit Services Office
SUBJECT MATTER:
REVISED POLICIES ON THE ACCEPTANCE OF
SECONDARY EVIDENCE AS BASIS FOR POSTING
LOAN REPAYMENTS
I. BACKGROUND/RATIONALE
On 09 September 2004, the GSIS issued Policy and Procedural Guidelines (PPG)
No. 179-04 allowing the acceptance of secondary evidence for the posting of loan
repayments covering loans due and payable prior to July 1997. The said PPG
covered Salary Loan, Policy Loan, Emergency Loan, Stock Purchase Loan and
Housing Loan accounts and identified office payroll, salary pay slip, agency salary
index card and GSIS manual loan ledger card as acceptable secondary evidence.
However, there are instances when records of remittance get lost or destroyed due
to artificial or natural calamities leaving both the GSIS and the remitting agency with
incomplete records. In view of such situations where documentary evidence
becomes unavailable both from the GSIS and the agency concerned, the possibility
of extending the acceptance of secondary evidence beyond July 1997 was explored.
It is worth noting that when the GSIS implemented electronic remittance in October
2007, the Electronic Remittance File (ERF) transmitted by agencies was already
used as basis for posting loan repayments without need of other bases for posting.
Hence, secondary evidence will only be accepted as basis for posting repayments
up to 30 September 2007 when the GSIS has not yet employed electronic
remittance.
In view thereof, this PPG is being issued to revise existing policies and make these
responsive to current situations.
II. OBJECTIVES
The admission of secondary evidence as proofs of payments is intended as a means
to:
A. Improve the level of updatedness of individual loan accounts of members;
B. Address the problem of incomplete, lost or destroyed records of remittance due
to artificial or natural calamities; and
C. Provide uniform policies and procedures on the acceptance of secondary
evidence as basis for posting repayments.
III. POLICIES
A. Coverage
1. Admission of secondary evidence as basis for posting of repayments to the
loan account of members shall only apply to monthly loan repayments that
were due and payable up to 30 September 2007.
2. This policy shall cover:
a. Salary Loan;
b. Policy Loan;
c. Emergency Loan;
d. Housing Loan; and
e. Stock Purchase Loan.
B. Conditions for Acceptance of Secondary Evidence
The GSIS shall accept secondary evidence as proof of payment for the
aforementioned period provided that:
1. The GSIS has no copy of the remittance list supporting the member’s request
for posting; and
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2. There is valid reason for the non-availability of remittance list from the agency
concerned, in which case a certification from the Head of Agency or Local
Government shall be required confirming the same.
The said certification shall be supported by news clippings, certification from
the Arson Division concerned of the Bureau of Fire Protection, situational
report from the National Disaster Risk Reduction and Management Council or
such other documents which may prove that the area, where the agency or
local government is located, had indeed been affected by an artificial or
natural calamity.
For this purpose, “valid reasons” shall only include artificial disasters such as
fire or armed attacks and natural calamities such as floods, earthquakes,
landslides, volcanic eruptions, tornadoes, and tsunamis, among others.
C. Secondary Evidence of Loan Repayments
Acceptable secondary evidence of payments duly certified shall be as follows:
1. Office Payroll;
2. Salary Payslip; or
3. Agency Salary Index Card.
D. Validation of Secondary Evidence
1. The documentary evidence presented shall be considered valid only if duly
certified as correct and authentic by the Human Resources and/or Accounting
Department of the agency concerned and noted by the Agency Authorized
Officer.
In case a secondary evidence is submitted for the purpose of posting
repayments, and, after verification, there are remittance lists lodged with the
Records Management Department or kept by the Records Custodian or
division concerned (in the case of Branch Offices) pertaining to the same
period, the repayments to be posted shall be based on the remittance lists.
2. The duly certified secondary evidence shall be endorsed by the Head of
Agency or Local Government.
3. Prior to posting of payment, the GSIS shall contact the office of the Head of
Agency or Local Government concerned to verify endorsement. If the latter
denies endorsing the documents, the GSIS shall reject the evidence
presented and notify the member of its invalidity.
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E. Approval for Posting
1. After due verification and validation of the secondary evidence, the
repayments covered by the secondary evidence shall be recommended for
posting only upon the approval of the Department or Branch Manager
concerned.
2. Payments recognized on the basis of the secondary evidence shall be
forwarded for posting through a Certified Notice to Post (CNP) duly signed or
certified by the Department or Branch Manager concerned.
F. Posting of Payments
1. The Posters of service and housing loans from the Operating Units
Concerned (OUCs) shall post the payments to the individual loan account of
the member as certified in the CNP.
2. It shall be the responsibility of the Poster concerned to ensure that only duly
accomplished and certified CNPs are accepted as basis for posting.
Accordingly, all CNPs posted shall be properly recorded and filed for future
reference.
G. Refund of Loan Overpayments
Excess payments that may result from the posting of payments on the basis of
secondary evidence shall be refunded to the member in accordance with existing
policies on refund of loan overpayments.
H. Required Revisions in the Posting Program
Upon approval hereof, the Information Technology Services Group shall develop
a program that will allow posting in the database of payments based on
secondary evidence. For this purpose, such entries shall be marked as SE to
distinguish these from postings based on ERFs, remittance lists and direct
payments.
I. Internal Audit Review
The Internal Audit Services Office (IASO) shall regularly conduct an audit of all
Secondary Evidence postings to ensure compliance with procedures and
improve internal control. The corresponding audit report shall be submitted to
the President and General Manager, copy furnished the Audit Committee.
J. Reportorial Requirements
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A Monthly Report on Posted Payments based on Secondary Evidence shall be
submitted to the Senior Vice Presidents (SVPs) of the OUCs, copy furnished the
Vice President (VP) of IASO, for monitoring purposes.
K. Information Dissemination
The Corporate Communications Office shall prepare information materials for the
dissemination of this PPG.
IV. PROCEDURES
The Manual of Operations of the units concerned shall adhere to the following
general guidelines:
A. Determination of the Need for Secondary Evidence
ACTIVITY
1. Receive Member’s Request Form (MRF)
for reconciliation of account due to
unposted loan payments from the
member-borrower.
RESPONSIBLE UNIT/PERSON
CO
BO
Frontline
Frontline
Personnel
Personnel
2. Check completeness of documents.
2.1 If complete, receive documents and
log into the Transaction Monitoring
System (TMS). Forward TMS and
documents
to
the
Accounts
Management Division (AMD) or
Billing, Collection and Reconciliation
Division (BCRD) for reconciliation of
account. Proceed to Activity 3.
2.2 If incomplete, advise memberborrower of deficiency and return
documents. Revert to Activity 1.
3. Reconcile account and verify if with
unposted loan payments.
3.1 If with unposted loan payments,
request
from
RMD,
Records
Custodian or division concerned
copies of remittance lists.
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AMD
BCRD
ACTIVITY
RESPONSIBLE UNIT/PERSON
CO
BO
a. If with remittance lists pertaining
to the period without posted
payment, prepare CNP. Forward
CNP to Manager concerned for
approval.
b. If
without
remittance
lists
pertaining to the period without
posted payment, prepare letter
informing the member of the
need to submit secondary
evidence as proof of payment.
Forward draft letter to the
Manager concerned for approval.
3.2 If without unposted loan payments,
prepare letter informing the member
of the same. Forward letter to
Manager concerned for approval.
4. Review and approve CNP or letter to
member. Forward approved CNP to
Poster concerned for posting of payment
or letter to RMD or Administrative Unit for
mailing.
Department
Manager
concerned
Branch
Manager
concerned
End of Process
B. Processing of Secondary Evidence as Proof of Payment
ACTIVITY
1. Receive
secondary
evidence
with
supporting documents from the memberborrower.
2. Check completeness of documents.
2.1 If complete, receive documents and
log into the TMS. Proceed to Activity
3.
2.2 If
incomplete,
advise
memberPage 6 of 8
RESPONSIBLE UNIT/PERSON
CO
BO
Frontline
Frontline
Personnel
Personnel
ACTIVITY
RESPONSIBLE UNIT/PERSON
CO
BO
borrower of deficiency and return
documents. Revert to Activity 1.
3. Forward TMS and documents to the
processor concerned of the AMD or
Housing
Accounts
Reconciliation
Department (HARD) in the Central Office
or BCRD of the Branch Office for
processing.
4. Evaluate secondary evidence submitted.
Validate if the required certification,
notation and endorsement are in
accordance with Section III.D, items 1
and 2.
AMD/HARD
Processor
concerned
BCRD
Processor
concerned
Department
Manager
concerned
Loan Poster
concerned
Branch
Manager
concerned
Loan Poster
concerned
4.1 If in order, proceed to Activity 5.
4.2 If not in order, inform memberborrower of deficiency. Revert to
Activity 1.
5. Contact the office of the Head of Agency
or
Local
Government
to
verify
endorsement.
5.1 If confirmed, prepare CNP. Forward
CNP to Manager concerned for
approval. Proceed to Activity 6.
5.2 If not confirmed, inform the memberborrower of the invalidity of
submitted evidence through a
disapproval letter signed by the
Manager concerned. Update TMS.
6. Review and approve CNP. Forward
approved CNP to Poster concerned.
7. Post payment based on approved CNP.
Inform Processor that payment has
already been posted. Update TMS and
forward to Manager concerned for closure
of TMS.
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ACTIVITY
RESPONSIBLE UNIT/PERSON
CO
BO
8. Close TMS.
9. Submit to SVPs concerned, copy
furnished the VP of IASO, the Monthly
Report on Posted Payments based on
Secondary Evidence.
Department
Manager
concerned
Branch
Manager
concerned
End of Process
This PPG shall supersede PPG No. 179-04 on the Acceptance of Secondary Evidence
as Basis for the Posting of Loan Repayments.
This PPG shall take effect immediately.
ORIGINAL SIGNED
ROBERT G. VERGARA
President and General Manager
Date Signed: ___Dec. 1, 2014__
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