51 GIVING BACK TO PARTNER AGENCIES FIELD SERVICE OPERATIONS
52 2022 Annual Report Behind the milestones and achievements of PSMBFI are its employees who go above and beyond their regular duties to extend service. Those on the frontlines interact with members and non-members alike to ensure that their inquiries, requests, and transactions will be promptly addressed. One success story of an employee is that of Robert Tolentino who has been with the PSMBFI for two decades. He recalls his early years with the company. “Nagstart ako sa PSMBFI bilang contractual hanggang sa maging regular. Almost 13 years na utility at nagenjoy naman ako. Nag aasist din ako sa trabaho ng ibang mga Departments. Dahil sa tyaga ay nakitaan siguro ako ng potential ni (then) President Mario Avenido at binigyan ako ng chance na ma-assisgn sa information counter.” “Sinabi ko sa sarili ko na hindi habang buhay ay utility ako. May plano ako sa buhay at ito na yun. From utility, naging customer assistant, to customer care specialist ako.” As a frontliner, Robert explains how he is able to handle a large volume of member requests. “Maraming challenges sa customer service kung paano ihahandle ang mga members. Kaya inilalagay ko ang sarili ko sa kanilang katayuan para mas maintindihan at matulungan ko sila.” “May mga pagkakataon na ikinukumpara nila ang PSMBFI sa iba nilang private insurance providers. Kaya pinapaalala ko sa kanila na kung sakaling may mangyayari sa isang member ay iisipin agad ng hepe niya kung member siya ng PSMBFI. Hindi naman agad maiisip na baka may ibang insurance siya kundi PSMBFI. At mayroon ding iba’t ibang benepisyo ang mga members.” “At sila na rin ang nagsasabi na mas maganda sa PSMBFI. May nakuha silang cash benefit mula sa ‘Pantawid COVID-19 Program’ at kamakailan sa ‘Salamat Kabalikat Program’. PSMBFI lang daw ang may mga ganitong pagtulong sa members.” Robert shares how he handles the concerns of members. “Mahalaga sa empleyado ang mayroong good attitude para walang maging problema. Kapag may walk-in member ay dapat silang ma-assist agad at hindi sila dapat umalis nang hindi natulungan. Yung mga inquiries through phone call at sa Facebook messenger ay ako din ang naghahandle. At kung may hindi magandang comment ay kinakausap ko ang member para maintindihan ko ang kanyang concern. Dapat maganda ang pakikitungo sa mga PSMBFI members para laging maayos ang pag uusap.” PSMBFI has always valued its employees. “The best para sa akin ang PSMBFI kasi nakapagpaaral ako ng kapatid at mga pamangkin. Napaayos ko ang bahay namin. Mahal ko ang pamilya ko. Dahil sa PSMBFI ay may kwento at nagka-kwenta ang buhay ko.” Just as members are the lifeblood of the Association, its employees are the workforce who ensure that quality service befitting them as public safety practitioners are rendered. Afterall, the welfare of members will always be PSMBFI’s top priority. “Dahil sa PSMBFI, nagka-kwento ang buhay ko”
53 The Metropolitan Manila Development Authority (MMDA) is a partner agency of PSMBFI. Most prone to accidents and health hazards are the traffic constables and street sweepers being exposed to the searing heat and battering rain. Other MMDA employees manage office operations to ensure the proper delivery of their metro-wide services. As MMDA manpower increases, PSMBFI finds compelling reasons to encourage them to enroll for membership through offline and online information drives and a regular help desk set-up at the lobby of their head office. This is to ensure that employees have life insurance and living benefits. Amongst many, an MMDA Kabalikat who understands the value of her PSMBFI membership is Ms. Mary Ann S. Tanbio, Assistant FOI Receiving Officer. “Regarding sa membership ng PSMBFI, actually malaking bagay kasi insurance ito. Kung anuman ang mangyari sa atin pagdating ng panahon ay mayroong makukuha na benefits ang ating mga maiiwanang mahal sa buhay. So, doon ko tinitingnan ang PSMBFI”, says Mary Ann. Having experienced the loss of a loved one over a virus that has killed thousands of infected cases, Mary Ann recalls the importance having PSMBFI insurance. “Based on experience ay iyong nangyari sa partner ko na nagwowork din dito sa MMDA. Namayapa siya noong March 20, 2021 dahil sa COVID-19. Since PSMBFI member siya, may mga inasikaso din ako na mga requirements para ma-avail yung death claim sa tulong ni Ma’am Lynette Vale at ng boss ko na si Director Sharon Gentalian. May benefits kaming nakuha at malaki rin yung halaga. Ang ginawa ko ay naka save ito sa bangko, may bank account yung anak ko.” “Medyo tiyaga lang talaga kasi bilang member, kailangan mo rin magcomply sa mga requirements, ipasa ang mga ito, at magfollow-up. Thankful ako kay John Jamasali ng PSMBFI dahil siya yung nag assist sa akin. Accommodating siya sa mga inquiries ko.” The need to be protected by life insurance has never been more urgent than today due to the risk of the public safety profession. “Hinihikayat ko ang mga empleyado na affiliated sa public safety na magpa-miyembro dahil para rin ito sa ating pamilya. Kung mahal natin ang ating family, sila yung i-prioritize natin. Kasi number one, insurance ito. Secondary na lang yung puwede tayo makapag-loan sa mababang interest rate.” With MMDA as partner agency of PSMBFI, the unparalleled protection and benefits of the members within will be the safeguard of their treasured families. THE VALUE OF PSMBFI MEMBERSHIP
54 2022 Annual Report Public Safety Mutual Benefit Fund (PSMBFI) Incorporated (A Non-stock, Not-for-profit organization) Financial Statements As at and for the years ended December 31, 2022 and 2021
55 Independent Auditor’s Report To the Board of Trustees and Members of Public Safety Mutual Benefit Fund (PSMBFI) Incorporated No. 318-320 Boni Serrano Avenue Corner 1st and 2nd West Streets San Juan City, Philippines Report on the Audits of the Financial Statements Our Opinion In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Public Safety Mutual Benefit Fund (PSMBFI) Incorporated (the “Association”) as at December 31, 2022 and 2021, and its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards (PFRS). What we have audited The financial statements of the Association comprise: • the statements of financial position as at December 31, 2022 and 2021; • the statements of total comprehensive income for the years ended December 31, 2022 and 2021; • the statements of changes in fund balance for the years ended December 31, 2022 and 2021; • the statements of cash flows for the years ended December 31, 2022 and 2021; and • the notes to the financial statements, which include a summary of significant accounting policies. We conducted our audits in accordance with Philippine Standards on Auditing (PSA). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Association in accordance with the Code of Ethics for Professional Accountants in the Philippines (Code of Ethics), together with the ethical requirements that are relevant to our audit of the financial statements in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with these requirements and Code of Ethics.
56 2022 Annual Report Independent Auditor’s Report To the Board of Trustees and Members of Public Safety Mutual Benefit Fund (PSMBFI) Incorporated Page 2 Other Information Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon. The Annual Report is expected to be made available to us after the date of this auditor's report. Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with PFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Association or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Association’s financial reporting process.
57 Independent Auditor’s Report To the Board of Trustees and Members of Public Safety Mutual Benefit Fund (PSMBFI) Incorporated Page 3 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with PSA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with PSA, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Association’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Association to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
58 2022 Annual Report Independent Auditor’s Report To the Board of Trustees and Members of Public Safety Mutual Benefit Fund (PSMBFI) Incorporated Page 4 Report on the Bureau of Internal Revenue Requirements Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information under Bureau of Internal Revenue (BIR) Revenue Regulations Nos. 15-2010 and 34-2020 in Note 18 to the financial statements is presented for the purposes of filing with the BIR and is not a required part of the basic financial statements. Such information is the responsibility of management of the Association. The information has been subjected to the auditing procedures applied in our audits of the basic financial statements. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Isla Lipana & Co. Imelda Dela Vega-Mangundaya Partner CPA Cert. No. 0090670 PTR No. 0024586, issued on January 9, 2023, Makati City SEC A.N. (individual) as general auditors 90670-SEC, Category A; valid to audit 2019 to 2023 financial statements SEC A.N. (firm) as general auditors 0142-SEC, Category A; valid to audit 2020 to 2024 financial statements TIN 152-015-124 BIR A.N. 08-000745-047-2021, issued on November 23, 2021; effective until November 22, 2024 BOA/PRC Reg. No. 0142, effective until November 14, 2025 Makati City April 5, 2023
59 Statement Required by Section 8-A, Revenue Regulations No. V-1 To the Board of Trustees and Members of Public Safety Mutual Benefit Fund (PSMBFI) Incorporated No. 318 - 320 Boni Serrano Avenue Corner 1st and 2nd West Streets San Juan City, Philippines None of the partners of the firm has any financial interest in Public Safety Mutual Benefit Fund (PSMBFI) Incorporated or any family relationship with its president, managers or principal members. The supplementary information on taxes and licenses is presented in Note 18 to the financial statements. Isla Lipana & Co. Imelda Dela Vega-Mangundaya Partner CPA Cert. No. 0090670 PTR No. 0024586, issued on January 9, 2023, Makati City SEC A.N. (individual) as general auditors 90670-SEC, Category A; valid to audit 2019 to 2023 financial statements SEC A.N. (firm) as general auditors 0142-SEC, Category A; valid to audit 2020 to 2024 financial statements TIN 152-015-124 BIR A.N. 08-000745-047-2021, issued on November 23, 2021; effective until November 22, 2024 BOA/PRC Reg. No. 0142, effective until November 14, 2025 Makati City April 5, 2023
60 2022 Annual Report Public Safety Mutual Benefit Fund (PSMBFI) Incorporated Statements of Financial Position December 31, 2022 and 2021 (All amounts in Philippine Peso) 2022 2021 A S S E T S Cash and cash equivalents 2,087,045,364 2,183,023,369 Financial assets at amortized cost, net 18,345,252,609 17,964,019,527 Financial assets at fair value through profit or loss 310,458,177 229,265,271 Investment property, net 2,814,000 2,814,000 Property and equipment, net 312,291,554 264,708,178 Retirement plan asset 27,526,514 35,625,103 Other assets, net 108,538,871 85,903,688 Total assets 21,193,927,089 20,765,359,136 LIABILITIES AND FUND BALANCE Accounts payable and accrued expenses 1,305,372,989 2,665,696,541 Claims payable 176,254,206 321,455,334 Legal policy reserves 592,881,810 522,226,756 Premium deposits 99,990,244 117,825,206 Members’ contributions 5,179,785,721 4,729,413,882 Total liabilities 7,354,284,970 8,356,617,719 Retained surplus Appropriated 7,531,000,945 9,105,535,237 Unappropriated 6,329,849,984 3,324,410,749 Accumulated other comprehensive loss (21,208,810) (21,204,569) Total fund balance 13,839,642,119 12,408,741,417 Total liabilities and fund balance 21,193,927,089 20,765,359,136
61 Public Safety Mutual Benefit Fund (PSMBFI) Incorporated Statements of Total Comprehensive Income For the years ended December 31, 2022 and 2021 (All amounts in Philippine Peso) 2022 2021 UNDERWRITING INCOME Insurance premiums 1,503,842,237 1,477,585,695 UNDERWRITING EXPENSE Claims expense (352,584,360) (418,661,167) Experience refund (7,561,899) (490,532,697) Increase in legal policy reserves (70,655,054) (39,947,463) NET UNDERWRITING INCOME 1,073,040,924 528,444,368 INTEREST INCOME 1,521,228,730 1,537,438,671 INTEREST EXPENSE (425,141,824) (470,568,083) NET INTEREST INCOME 1,096,086,906 1,066,870,588 PROVISION FOR CREDIT LOSSES (152,635,911) (121,467,080) NET INTEREST INCOME AFTER CREDIT LOSSES 943,450,995 945,403,508 OTHER INCOME Rental income 6,539,717 6,291,484 Fair value changes on financial assets at fair value through profit or loss (10,008,660) (6,067,683) Others 8,089,111 4,597,589 4,620,168 4,821,390 INCOME BEFORE OPERATING EXPENSES 2,021,112,087 1,478,669,266 GENERAL AND ADMINISTRATIVE EXPENSES (589,929,233) (571,873,001) INCOME BEFORE INCOME TAX 1,431,182,854 906,796,265 INCOME TAX EXPENSE (277,911) (579,331) NET INCOME FOR THE YEAR 1,430,904,943 906,216,934 OTHER COMPREHENSIVE INCOME (LOSS) Item that will not be subsequently reclassified to profit or loss Remeasurement (loss) gain on retirement benefit obligation (4,241) 20,070,072 TOTAL OTHER COMPREHENSIVE (LOSS) INCOME (4,241) 20,070,072 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,430,900,702 926,287,006
62 2022 Annual Report PRO 1 Camp BG Oscar Florendo, Parian, San Fernando City, La Union (072) 607-1840 0968-851-4970 0968-851-4971 0968-851-4972 0917-125-9798 0968-587-3474 PRO 2 Camp Gen Marcelo A Adduru, Alimanao, Tuguegarao, Cagayan 0919-098-1942 0919-098-1943 0919-098-1944 0917-194-0728 0917-180-9800 0917-183-1014 PRO 3 Camp Capt Julian Olivas, San Fernando,Pampanga (045) 435-1978 0908-814-9362 0915-952-9453 PRO 4A (CALABARZON) Camp Gen Vicente Lim, Calamba City, Laguna 0919-098-9126 0917-133-2686 0917-143-6683 0917-145-0465 0917-150-0021 0917-126-3603 PRO 4B (MIMAROPA) Camp Gen Efigenio Navarro, Calapan City, Oriental Mindoro 0919-098-9701 0919-098-9702 PRO 5 Camp Gen Simeon A. Ola, Legaspi City, Albay (052) 820-6027 0916-560-5717 0917-417-4578 0917-309-0247 0917-103-4695 0917-308-7360 PRO 6 Camp Gen Martin Delgado, Fort San Pedro, Iloilo City (033) 335-0137 0927-995-4544 0928-300-7594 0917-917-3516 0916-794-1777 0939-753-7757 0907-397-0616 PRO 7 Camp President Sergio Osmena Sr., Osmena Boulevard, Cebu City (032) 415-5530 (032) 256-1140 0922-287-3198 0917-304-7221 0917-147-8949 0945-809-0084 0926-072-8231 PRO 8 Camp Sec Ruperto Kangleon, Palo, Leyte (053) 832-4443 0968-851-9036 0977-013-2055 0917-102-4835 0963-029-0021 PRO 9 Camp Col Romeo Abendan, Mercedes, Zamboanga City +63 977-315 0424 +63 917-100 1068 +63 917-132 1761 PRO 10 Camp 1lt Vicente G. Alagar, Cagayan de Oro City (088) 850-3204 0917-132-8658 0917-132-0257 0917-132-2252 0917-123-1613 0955-886-4370 0927-511-7710 PRO 11 NEKZS Bldg II, FIL-AM Friendship Highway Catitipan, Brgy. Communal, Davao City (082) 234-9311 0917-119-8023 0917-116-7192 PSMBFI REGIONAL SERVICE OFFICES PRO 12 Regional Headquarters, Tambler, General Santos City 0968-851-2413 0968-851-2415 0917-124-8017 0917-102-2221 0919-099-6462 0968-851-2417 PRO CARAGA Camp Rafael C Rodriguez, Libertad, Butuan City (085) 226-0129 0917-571-7722 0929-389-3127 PRO BAR Camp BGen Salipada Pendatun, Parang, Maguindanao 0968-883-9903 0919-005-4874 0919-066-1278 0917-117-4035 0917-188-7629 0917-124-5170 PRO COR Camp Gov Bado Dangwa, La Trinidad, Benguet (074) 422-8154 0927-585-1344 0918-912-3857 0997-386-8490 0965-533-4577 0965-247-7851 0906-272-2906 NCRPO Camp Bagong Diwa, Bicutan, Taguig, Metro Manila (02) 8-838-4891 0968-851-0643 0968-851-0644 0968-851-0646
63 LESSONS WE CAN LEARN FROM THE GEESE • As each goose flaps its wings, it creates an “UPLIFT” for the geese following. By flying in a “V” formation, the whole flock adds 71% more range than if each goose flew alone. LESSON: People who share a common direction and a sense of community can get to their destination quicker and with less difficulty because they are traveling on the thrust of one another. • When the lead goose gets tired, it rotates back in formation, and another goose flies at the point position. LESSON: It pays to take turns doing hard tasks and sharing leadership with people interdependent with each other. • The geese honk from behind to encourage those in front to keep up their speed. LESSON: We need to make sure our honking from behind is an encouragement that will strengthen a diminishing resolve, not something less helpful. • When a goose gets sick, or wounded or shot down, two geese drop out of formation and follow the member which went down to provide protection. They stay with this member of the flock until it is able to fly again or dies. Then they catch up with the original flock and rejoin the formation. LESSON: If we have as much sense as the geese, we’ll stand by each other.
64 2022 Annual Report PSMBFI Main Office 318-320 Santolan Road cor. 1st and 2nd West Streets, Brgy. West Crame, San Juan City, Metro Manila