Collecting the Holy Gardens Plot funds, ME, PC, VAT, and entrusting the same at Majorem Lending

TO                         Accounting:

                                   AP

                                   TA

                            Sales Admin

                            Majorem Lending

                                  AA

SUBJECT:     IMPLEMENTATION OF THE ROUTINE PROCEDURE  OF COLLECTING THE FUNDS CONNECTED WITH PLOT SALES AND ENTRUSTING THE SAME TO MAJOREM LENDING

Date:   Joly 21, 2017

We had used the business model of separating our funds entrusting the same at MLII, and using the same as standby source of funds for construction. We also aid and provide CS to our customers. It has been a successful model, and needs to be benchmarked by other MP companies

All the funds that need to be separated:  PC, VAT, ME CAPF are removed from the SBU accounts are deposited with MLII

A.  Objectives:

    1. To separate funds that belong to the SBU and those that are set aside from some other purpose such as PC, ME, VAT and CAPF (lately we added Collection fee)

    2. To insulate the  said funds from improper use in operations

   3.  To divvy up funds among depository banks and various investmetns

   4.  To insulate the funds from court cases and claims.  (Our PC were sequestered summarily by Unishire and we had to borrow funds/float a PN to fund that deficiency which is running  into millions We do not want a repeat

B.  Reality

1.  Ever since the MLII lost staff, the funds have been in disarray;

2. There were several new hires but the funds were not fixed

3.  There are now new hires but are still unable to collect the funds

The bank balances of SBU are ballooning but the funds do not belong to them.  In case of  an accident, the unremitted  premium to the insurer leave us at great risk.  In case of claim, for CAPF, we do not have enough funds to pay the claim

4. As with regards to ME, the ME at Calamba since 2015 has not been properly collected while we continue to pay the commission of agents from our funds.  With 2000 accounts and at an average of P50,000 SP per account, that is about 100,000,000 total sales.   

For a say 60% NLP at that time, 60,000,000,we have paid only 10% or 6,000,000 as com to the agents;  we have not collected the other 10% or 6,000,000 quite a huge amount.   This post also notices that in the sharing, we have not deducted ME from the sharing

However, GDC is collecting  the share  of the amount of what was stolen

For two years of sharing, say 2,000,000 a month x 24  =  48,000,0000 that is about 10% (conservative) 4,800,000 of uncollected ME

       We have discussed lately that we do not earn much from the plot especially with the huge  CGS we shoulder for the entire sale, from our share alone;  we earn more from say insurance and other services.

      We spend a lot, and earn a little and do not collect nor claim what is due us.This is not the way to run business

WTDN:

1. Hire additional accounting staff for MLII

2.  MLII must collect the funds from SBU 

              1. Send SoA to AP of Holy Gardens

              2. AP must make CV

              3. TA must make check and remit to MLII;  MLII accepts and records

              4.  MLII must lend and wisely invest as in Hataw plots

                       1. Sell the plots it own at a profit

                       2.  Buy forfeited plots at cost from HGMP esp those

                            in arrears)

                      3. Funds acctg assistant must compute for interest of funds 

                          max rate

3.  Somebody from accounting must back track the uncollected ME from HGGMP and send SoA to the JV;  the Accounting back tracking must be reliable and we should defend it vs their comptroller 

This is a serious matter that needs every ones serious attention and immediate action

For immediate compliance

cc.  Board of Directors   HGMP, MLII

--

Jorge U. Saguinsin

To "be the best, do your best, expect the best" always

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