MORNBFI Vol. 1 - Planters Development Bank

APP. Q-5611.31.128. Conduct physical inventory and instituteappropriate control and custody of all assets,liabilities, records, books of accounts andaccountable forms of the institution;9. Notify in writing the employees ofthe institution concerning the suspension oftheir employment contracts. Determine thenumber of employees to be retained in thereceivership operation of the institution, andissue a notice of indefinite leave of absencefor those who may not be retained and aconfirmation of employment for those to beretained;10. Deposit all checks and other cashitems that were inventoried and subsequentcollections to the savings account/currentaccount mentioned in Item 7 above; and11. Reconcile the inventoriedproperties/assets with the books/records andaccount for missing items. Demand from theresponsible/ accountable officials theturnover of unaccounted items or writtenexplanation under oath for each of themissing items.The tasks and the procedures listedabove need not be followed in the order theywere listed. The entire receivership team isexpected to exercise sound discretion ingiving priorities to more urgent matters.Moreover, the receiver/deputy receiver mayadopt other measures/ appropriate steps hemay deem necessary under givencircumstances. Finally, he shall endeavor toeffect an orderly and seamless takeover andminimize inconvenience to the institution’smanagement and personnel.Item Nos. (1) to (9) above should be, asmuch as practicable, undertaken on the firstday of takeover.C. Post TakeoverWithin fifteen (15) days after the completionof the takeover, the receiver shall submit tothe MB, through the Deputy Governor ofthe Supervision and Examination Sector, areport containing the following information:1. Brief history of the institution;2. Basis of its placement underreceivership;3. Comparative balances of its accountas reflected in the books as of takeover dateagainst the balances obtained per inventoryand turnover from the institution’smanagement to the receiver;4. Inventories mentioned in Item B. 8above; and5. Such other information that shouldbe brought to the attention of the MB.D. Accounting and ReportorialRequirements AccountingOnce takeover is in place, the receivershipteam shall immediately undertake to:1. Adopt an effective accountingsystem.a) Carry in the receiver’s books a chartof accounts of the institution, withadditional accounts such as ReceivershipCosts and Fees (for recording of the salariesof the receivership team and those of theinstitution’s employees to be retained, andother authorized expenses incurred by thereceiver) and the Receivership Income(which may include rental income, andinterest income);b) Supervise the closing of the books asof takeover date and transfer the balancesof all real accounts from the institution’sbooks to the new set of books opened bythe receiver’s team; andc)Record receiver’s transactionsinvolving receipt and disbursement of cashin accordance with generally acceptedaccounting principles.2.Attend to all requirements of variousagencies of the government, such as filingof tax returns and notices or otherreportorial requirements of theDepartment of Labor and Employment,Securities and Exchange Commission andSocial Security System/GovernmentService Insurance System.Appendix Q-56 - Page 12Manual of Regulations for Non-Banks Financial Institutions