I nade nadequacy quacy of B ond The PCF Custodian Custodian is not adequately bonded bonded with the Fidelity Fund, thus, not fully insured for the faithful performance performance of all duties imposed upon her by law.
16. Section 101 (2), Chapter 5 of P.D. No. 1445 states, “Every accountable officer shall be properly bonded in accordance accordance with law.” Likewise, 5.1 of Treasury Circular No. 02-2009 explained that t hat the amount of bond shall be based on the total accountability of the AO as determined by the head of the agency. 17. The PCF Custodian has a fidelity bond of ₱ 75,000.00 with maximum accountability of ₱10 ₱100,000.00. 0,000.00. However, her total accountability is ₱200,000.00, ₱200,000.00, thus, her bond bond should have been ₱100,000.00 with maximum accountability ranging between ₱101,000.00 ₱101,000 .00 and ₱250,000.00. ₱250,000. 00. 18. The PCF Custodian disclosed that it was the HRMO who processed the renewal of her fidelity bond with the Bureau of Treasury, thus, she is unaware that her bond is not enough to cover her accountability. 19. The HRMO Head and the staff-in-charge of fidelity bond renewal revealed that they renew the bonds of the AOs based on the previous bond and overlooked the increased amount of accountability of the AO, thus, was not able to increase the bond. However, the HRMO Head promised to process the increase of bond premium payment so that the coverage of the bond can accommodate the accountability of the PCF Custodian. 19. We recommend that Management require the HRMO to increase in accountability and to ensure that every AO is adequately bonded.
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