Amendments to Submission of Annual Audit Report and Annual Report of Government Financial Institutions (GFIs)

BnNoxo SENTnRL Nc PrurprNes OFFICE OF THE GOVERNOR CIRCULAR NO. e11 Series of 2016 Subject: Amendments to Submission of Annual Audit Report and Annual Report of Government Financial Institutions (GFls) Pursuant to Monetary Board Resolution No. 587 dated L4 April 2OL6, the regulations on government financial institutions submission of (a) annual audit report as provided under Subsection X190.1 and Appendix 61 of the Manual of Regulations for Banks (MORB) and Section 4L9OQ/4L72N/4L725 and Appendix Q-33 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI); and (b) annual report as provided under Subsection xL9o.6/4r90Q.6 of the MoRB/MoRNBFl, are hereby amended: Section 1. Subsection X190.1 of the MORB and Section 4L9OOJ4L72N/4L72S of the MORNBFI shall be amended to read as follows: 'S X190.1 (2008 - X766.7) Financial Audit. Banks shall cause an annual financial audit by an external auditor acceptable to the Bangko Sentral not later than thirty (30) calendar days after the close of the calendar year or the fiscal year adopted by the bank. Report of such audit shall be submitted to the board of directors or country head, in the case of foreign bank branches, and the appropriate department of the SES not later than 120 calendar days after the close of the calendar year or the fiscal year adopted bythe bank. xxx XXX Government-owned or-controlled banks, including their subsidiaries and affiliates under Bangko Sentral supervision, which are under the concurrent jurisdiction of the Commission on Audit (COA) shall be exempt from the aforementioned annual financial audit by an acceptable external auditor: xxx Banks under the concurrent jurisdiction of the Bangko Sentral and COA shall, however, submit a copyof the annualaudit report (AAR)of the COAtothe appropriate department of the SES within forty (a0) calendar days after receipt of the AAR by the board of directors. xxx XXX,, "Sec. 4190Qe008 - 4172Q) Audited Finonciol Statements of Quasi-Bonks; Financiol Audit. The following rules shall govern the utilization and submission of audited financial statements (AFS) of QBs. xxx XXX A. Mabini St., Malate 1004 Manila, Philippines o (63217O8-77O1 . www.bsp.gov.ph . [email protected]

Government-owned or-controlled QBs, including their subsidiaries and affiliates under Bangko Sentral supervision, which are under the concurrent jurisdiction of the Commission on Audit (COA) shall be exempt from the aforementioned annualfinancial audit by an acceptable external auditor: xxx QBs under the concurrent jurisdiction of the Bangko Sentral and COA shall, however, submit a copy of the annual audit report (AAR) of the COAto the appropriate department of the SES of the BSP within forty (a0) calendar days after receipt of the AAR by the board of directors. xxx XXX,, "Sec.4L72N Financial Audit. Fts shall cause an annual financial audit by an external auditor acceptable to the Bangko Sentral not later than thirty (30) calendar days after the close of the calendar year or the fiscal year adopted by the Fl. xxx xxx Government-owned or -controlled Fls, including their subsidiaries and affiliates under Bangko Sentral supervision, which are under the concurrent jurisdiction of the COA shall be exempt from the aforementioned annual financial audit by an acceptable external auditor: xxx Fls under the concurrent jurisdiction of the Bangko Sentral and COA shall, however, submit a copy of the AAR of the COA to the appropriate department of the SES within forty (40) calendar days after receipt of the MR by the board of directors. xxx xxx" "Sec. 4t72S Financial Audit. NSSLAs shall cause an annual financial audit by an external auditor acceptable to the Bangko Sentral not later than thirty (30) calendar days after the close of the calendar year or the fiscal year adopted by the NSSLA. xxx xxx NSSLAs under the concurrent jurisdiction of the Bangko Sentral and COA shall, however, submit a copy of the AAR of the COA to the appropriate department of the SES within forty (40) calendar days after receipt of the AAR by the board of directors. xxx XXX,,

Section 2. Subsection X190.6/4190Q.6 of the MORB/MORNBFI shall be amended to read as follows: '5 X190.6 (2008 - X166.6) Posting and submission of annual report. A copy of the latest annual report shall be posted by the bank in a conspicuous place in its head office, all its branches and other offices. xxx XXX The deadline for the submission of the annual report and ARAC to the appropriate department of the SES is 180 calendar days afterthe close of the calendar or fiscal year adopted bythe bank. Banks under the concurrent jurisdiction of the Bangko Sentral and COA, however, shall submit the annual report and ARAC to the appropriate department of the SES within 100 calendar days after receipt of the AAR by the board of directors." "S 4190Q.6 (2008 - 4172Q.5) Posting and submission of onnual report. A copy of the latest annual report shall be posted by the QB in a conspicuous place in its head office, all its branches and other offices. The deadline for the submission of the annual report to the appropriate department of the SES is 180 calendar days after the close of the calendar or fiscal year adopted by the QB. QBs under the concurrent jurisdiction of the Bangko Sentral and COA, however, shall submit the annual report to the appropriate department of the SES within 100 calendar days after receipt of the AAR by the board of directors." section 3. Appendix 61 of the MoRB and Appendix Q-33 of the MoRNBFI shall be amended to read as follows: "App.61 CHECKLIST OF BANGKO SENTRAL REQUIREMENTS IN THE SUBMISSION OF FINANCIAL AUDIT REPORT, ANNUAL AUDIT REPORT AND REPORTS REQUIRED UNDER APPENDIX 43 [Appendix to Subsec. X190.1 (2008 - X166.1)] The external auditor (lncluded in the List of BSP Selected External Auditors) shall start the audit not later than thirty (30) calendar days after the close of the calendarfiscal year adopted by the bank. AFS of banks with subsidiaries shall be presented side by side on a solo basis and on a consolidated basis (banks and

subsidiaries). The FAR shall be submitted by the bank to the appropriate department of the SES not later than 120 calendar days after the close of the calendar year or fiscal year adopted by the bank, together with the following: Information/Data requi red Deadline for submission A. Financial Audit Report xxx B. AAR - For banks under the concurrent jurisdiction of the Bangko Sentral and coA 1. Copy of the AAR accompanied Within forty (a0) calendar days after by the: receipt of the AAR by the board of directors. xxx xxx" "App.Q-33 CHECKLIST OF BANGKO SENTRAL REQUIREMENTS IN THE SUBMISSION OF FINANCIAL AUDIT REPORT, ANNUAL AUDIT REPORT AND REPORTS REQUIRED UNDER APPENDIX Q.3O [Appendix to Secs. 4190Q (2008 - 4L72Ql,4L725 and 4172N] The external auditor (lncluded in the List of BSP Selected External Auditors) shall start the audit not later than thirty (30) calendar days after the close of the calendarfiscal year adopted by the Fl. AFS of Fls with subsidiaries shall be presented side by side on a solo basis and on a consolidated basis (Fls and subsidiaries). The FAR shall be submitted by the Fl to the appropriate department of the SES not later than 120 calendar days after the close of the calendar year or fiscal year adopted by the Fl, together with the following: I nformation/Data required Deadline for submission A. FAR XXX B. AAR - For Fls under the concurrent jurisdiction of the Bangko Sentral and COA.

1. Copy of the AAR accompanied Within forty (40) calendar days after by the: receipt of the AAR by the board of directors. XXX XXX,, Effectivity. This Circular shall take effect fifteen {15) calendar days following publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: . AQUINO OYMay 2016