MORNBFI Vol. 1 - Planters Development Bank

§ 4190Q08.12.31allow management or employees, in thenormal course of performing their assignedfunctions, to prevent or detectmisstatements on a timely basis. Asignificant deficiency is a controldeficiency, or combination of controldeficiencies, that adversely affects theinstitution’s ability to initiate, authorize,record, process, or report financial datareliably in accordance with generallyaccepted accounting principles. The termmore than remote likelihood shall meanthat future events are likely to occur or arereasonably possible to occur.The board of directors, in a regular orspecial meeting, shall consider and act onthe FAR and the certification under oathsubmitted in lieu of the LOC and shallsubmit, within thirty (30) banking daysafter receipt of the reports, a copy of itsresolution to the appropriate departmentof the SES. The resolution shall show,among other things, the actions(s) takenon the reports and the names of thedirectors present and absent.The board shall likewise consider andact on the LOC and shall submit, withinthirty (30) banking days after receiptthereof, a copy of its resolution togetherwith said LOC to the appropriatedepartment of the SES. The resolution shallshow the action(s) taken on the findingsand recommendations and the names ofthe directors present and absent, amongother things.The LOC shall be accompanied by thecertification of the external auditor of thedate of its submission to the board ofdirectors.Government-owned or -controlledbanks, including their subsidiaries andaffiliates, as well as other FIs under BSPsupervision which are under the concurrentjurisdiction of the Commission on Audit(COA) shall be exempt from theaforementioned annual financial audit byan acceptable external auditor: Provided,That when warranted by supervisoryconcern such as material weakness/breachin internal control and/or risk managementsystems, the Monetary Board may, uponrecommendation of the appropriatedepartment of the SES, require the financialaudit to be conducted by an externalauditor acceptable to the BSP, at theexpense of the QB: Provided, further , Thatwhen circumstances such as, but notlimited to loans from multilateral FIs,privatization, or public listing warrant, thefinancial audit of the QB concerned by anacceptable external auditor may also beallowed.QBs and other FIs under the concurrentjurisdiction of the BSP and COA shall,however, submit a copy of the annual auditreport (AAR) of the COA to the appropriatedepartment of the SES of the BSP withinthirty (30) banking days after receipt ofthe report by the board of directors. TheAAR shall be accompanied by the:(1) certification by the institution concernedon the date of receipt of the AAR by theboard of directors; (2) reconciliationstatement between the AFS in the AAR andthe balance sheet and IS of the QB and trustdepartment submitted to the BSP, includingcopies of adjusting entries on thereconciling items; and (3) other informationthat may be required by the BSP.The board of directors of saidinstitutions, in a regular or special meeting,shall consider and act on the AAR, as wellas on the comments and observations andshall submit, within thirty (30) banking daysafter receipt of the report, a copy of itsresolution to the appropriate department ofthe SES. The resolution shall show theaction(s) taken on the report, including thecomments and observations and the namesof the directors present and absent, amongother things.The AFS required to be submitted shallin all respect be PFRS/PAS compliant:Provided, That FIs shall submit to the BSPManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart I - Page 55