WALKTHROUGH – COLLECTION ASSOCIATE

Location: Pala-o Branch

Date: August 13-14, 2024
Louise Mari E. Enriquez IA Specialist
IA Participants: Lheskie Jane L. Larato IA Associate
Lovely C. Leyson IA Associate
Artemio D. Paclar Collection Associate
Annferne C. Tumang Collection Associate
Interviewees:
Francis S. Redublado Jr Collection Associate
Kent Mitchell M. Villacruz Collection Associate

Process Overview
The collection associate is responsible for collecting overdue payments, updating account
records and monitoring overdue accounts.

Aging Report/ Aging of Loans

A schedule of all active loans with outstanding balances, categorized by aging. This report
details the arrears of each specified loan account based on its amortization schedule and the
number of days since the last payment was made.

Itinerary Report
A document that contains a list of members to be collected within the day. Indicated herein
the information such as name address, contact number, payment of the member and remarks
if possible.

Collection and Remittances

Collection Reports
These are lists of collections for a specific day or period. They include the OR number,
customer information file key, account name, and a breakdown of loan payments and other
savings.

Tellers Blotter
This shows the date the transaction is made, reference number generated by the system,
account number if any, transaction mnemonic, and amount of the transaction.

Cash end
Total cash collected from members and remitted to cashier at the end of the day.
A. Aging Report

At start of the day, the collector identifies the members for collection by generating aging
report. Aging Report in Ekoopbanker System is being categorized into three types: Aging by
Amortization, Maturity and Portfolio At Risk (commonly used in operation). This report can be
generated in detailed or in summary, per collector, per alphalist, per location or per sub –
location.

Aging By PAR (Portfolio At Risk)

One (1) day non–payment of the member–borrower’s loan account based on its loan
amortization schedule; all its loan balance is already at risk. This is to evaluate and
identify any irregularities within the Cooperative’s Loan Receivables.

How to Generate Aging by Par Report (Exhibit. 1)

1. Click in aging of loans menu under

Reports in main menu bar.
1
2. Fill in data needed such as date and
choose aging by Portfolio at Risk
(PAR) and select desired details
3. Save the file in Excel format to the
disk as destination.

2
3

SAMPLE GENERATED AGING REPORT

Exhibit 1. Aging Report

 Each day, the collector evaluates, highlights and sort members' name based on the
designated letter corresponding to the last names of the member. Thereafter, the collector
compiles the accounts that need to be collected. This process should be done daily to
reduce delinquent member borrowers of the Coop and prevent an increase in uncollected
accounts.

A. Itinerary Report (Exhibit 2)

The itinerary report prepared by the collector includes members’ name, addresses, contact
numbers and payment breakdowns. This report should be verified by the account
supervisor before fieldwork. Following verification, the collector prepares the motor vehicle
trip ticket for approval by the Branch Manager. In the absence of Branch Manager, the
Account Supervisor will approve the motor vehicle ticket trip.

Exhibit 2. Itinerary Report

Collector will contact and inform the member

regarding the upcoming collection, and will manually
issue official receipt (Exhibit 3) to the member.

Exhibit 3. Vehicle Trip Ticket

B. Collections and Remittance

After fieldwork, the collector will input all collections into the CASA module.

How to Access Tellering Menu

1. Open casa module and click tellering menu.

2. For cash deposit, click DEPOSIT menu and select the Cash deposit sub – menu.

2. Enter the name the member as shown in the official receipts (Exhibit 4), then click the
GET button. Personal details of the member and blotter will be displayed.

3 SAMPLE
Exhibit 4.ACTUAL RECEIPT
Official Receipt

4. For cash payments, click PAYMENT menu and select cash payment.
In the new window,
1. Type OR number
2. Click search in the select account name bar.
3. Type the name of the member in the search account window, click get then select the
name of the member.

These transactions are deposits and loan payments in the form of cash received by collector
for posting to the depositor’s account. These are evidenced by official receipts.

After inputting all collections, the collector will generate a collection report and blotter. These
reports together with the receipts will be forwarded to accounting for checking the cash amount
against receipts and collection report to ensure that the amount in the receipts is properly
recorded. Accounting will leave tick mark and sign off. Thereafter, the collector will perform
cash end and forward to cashier the blotter, collection report and cash transfer slip together
with the cash collections for review, verification and reconciliation.
How to generate Collection Report (Exhibit 5)

1. Open Ekoop Loan Module

2. On Reports Menu, click

Collection Reports then Teller’s
Collection Reports

3. Fill in the required data such

as date covered and teller’s
username, then click okay to
generate file then save.

4. Save the file in Excel format to

the disk as destination.

5. Open the generated file, adjust

margin, if necessary, before
printing the report.

Sample Generated Collection Report

Exhibit 5. Collection Report

How to generate Blotter (Exhibit. 6)

1. Click Blotter menu from the Cashiering main menu bar.

2. Enter desired date and Teller’s User ID, then click the GENERATE button.
3. Print report or export it to excel or any other file format available

Exhibit 6. Teller’s Blotter

PROCESS RISKS OR WHAT COULD GO WRONG
CONTROLS
OVERVIEW (WCGW)
Aging Incorrect or Incomplete Aging Report Implement a double-check
Report/ Generation: The collector may generate process where a supervisor or
Aging of an incorrect aging report (e.g., incorrect another team member reviews
Loans filter settings or wrong categorization), the generated report to ensure
leading to wrong member accounts being the correct categories
identified for collection. (Amortization, Maturity, Portfolio
At Risk) and settings (per
collector, per location, etc.) are
applied. Use automated
validation tools to ensure that
only valid data is used in
generating the report.
Manual Errors in Sorting and Introduce automated sorting
Highlighting Member Names: While functions in the system to reduce
sorting members by their last names, the human error. Additionally, provide
collector might mistakenly overlook or training on accurate manual
misclassify a member, leading to delayed sorting procedures and
or missed collections. implement periodic checks for
accuracy.
Delays in Compiling Accounts for Set up a clear daily schedule and
Collection: If the collector fails to compile reminders for collectors to ensure
accounts on time, it could lead to delayed timely compilation of accounts.
collection efforts, causing an increase in Supervisors should regularly
delinquent accounts and uncollected loans. check the completion status to
ensure deadlines are met.
Overlooking Accounts Due for Implement automated systems
Collection: A collector might accidentally that flag overdue accounts and
overlook certain accounts due to improper generate reminders for any
filtering or categorization of members in member who needs attention.
the aging report. Regular audits of the collection
list can further ensure that all
members are accounted for.
Inconsistent Reporting (Detailed vs. Standardize the report generation
Summary): The collector might process by defining and
accidentally generate a summary report communicating which report type
when a detailed report is needed, or vice is needed each day. Use system
versa, causing missing or incomplete prompts or checklists to ensure
information for collection efforts. the correct report is selected and
that necessary information is
captured.
Inadequate Tracking of Delinquent Use a tracking system within the
Accounts: If there is insufficient tracking Ekoopbanker system to monitor
of which accounts have been collected or if which accounts have been
the process isn't documented properly, collected and which are still
delinquent accounts may increase. outstanding. Regular status
updates should be logged to
ensure no account is overlooked.
Loss of Important Data: Data in the aging Implement a backup system for
report could be lost or corrupted (e.g., all reports and ensure regular
system crash, or data entry error) before backups are taken. The
 the collector processes the information. Ekoopbanker system should have
an autosave feature and a
recovery protocol in place to
avoid data loss.
Failure to Reduce Delinquent Accounts: Ensure accountability by
The process may not be effective in assigning specific targets for daily
reducing delinquent accounts if the collections and requiring daily
identification and follow-up actions are not reports to track progress.
performed daily or properly. Conduct regular performance
reviews of the collection process
to ensure its effectiveness.
Itinerary Inaccurate Itinerary Report: The itinerary Implement a system for regularly
Report report may contain inaccurate or outdated updating member details, and
information, such as wrong member require the account supervisor to
addresses, contact numbers, or payment double-check and verify the
breakdowns, leading to failed collections or itinerary report for accuracy
confusion. before fieldwork. Utilize an
automated system to validate
contact details and payment
records to minimize human error.
Lack of Proper Verification of Itinerary Establish a formal checklist for
Report: The account supervisor may fail to the account supervisor to follow
thoroughly verify the itinerary report, during the verification process.
resulting in unapproved or incorrect details This checklist should include
being used for collection, which could validating member details,
affect the success of the fieldwork. payment schedules, and ensuring
that all required fields are
correctly completed. Supervisors
should sign off on each report
before it is used for fieldwork.
Motor Vehicle Trip Ticket Approval Implement a policy for the
Delays: Delays in obtaining the Branch Account Supervisor to approve
Manager’s approval for the motor vehicle the motor vehicle trip ticket in the
trip ticket (due to their absence or absence of the Branch Manager.
unavailability) could cause delays in the This delegation of authority
collector’s ability to begin fieldwork. should be formalized, and the
approval process should be
documented to ensure timely
fieldwork initiation.
Unauthorized or Improper Use of Motor Ensure that the motor vehicle trip
Vehicle for Fieldwork: The collector might ticket is only issued and used
use the motor vehicle for fieldwork without after obtaining proper approval,
the proper approval or documentation, whether from the Branch
potentially leading to accountability issues Manager or the Account
or misuse. Supervisor. Implement a system
to track and audit vehicle use for
transparency and accountability.
Failure to Contact Members Before Implement a reminder system for
Collection: The collector may fail to the collector to contact each
contact the members in advance about the member a day or two before the
upcoming collection, leading to missed scheduled collection. Set up a log
appointments or members being to track which members have
 unavailable, which can delay collections. been contacted and confirm
appointments.
Manual Issuance of Receipts Could Introduce a receipt tracking
Lead to Errors: The manual issuance of system that requires the collector
receipts could result in errors, such as to enter payment details directly
incorrect payment amounts, wrong dates, into a digital system or use pre-
or missing information, leading to potential printed receipts with built-in
disputes or reconciliation issues. checks. A supervisor should also
review the issued receipts
periodically for accuracy.
Fraudulent Receipt Issuance: A collector Implement a unique serial
could issue a fraudulent or duplicate number system for receipts, and
receipt, either intentionally or by mistake, ensure that all issued receipts are
leading to discrepancies in the collection logged in a central system.
records or potential for financial Supervisors should conduct
misconduct. random audits to verify that
receipts are being issued properly
and are reconciled with the
payment logs.
Incomplete or Missing Documentation: Establish a strict documentation
The collector might forget to properly policy, requiring the collector to
document the collection process, including submit all trip tickets, receipts,
the trip ticket or receipts, leading to and other necessary documents
untraceable collections or disputes. at the end of each fieldwork day.
Introduce a checklist for the
collector to confirm all required
documents have been properly
issued and filed.
Fieldwork Delays Due to Inadequate Use route optimization tools or
Planning: If the itinerary or trip ticket is not systems to plan efficient
planned properly, the collector might collection routes. Supervisors
encounter delays or difficulty in completing should review the itinerary to
the fieldwork (e.g., missed members or ensure it is properly planned, and
inefficient route planning). the collector should be trained in
effective time management and
route planning.
Collections Incorrect Data Entry into CASA Module: Implement a system with
and The collector may make errors when validation checks to detect
Remittance inputting collection data (such as wrong incorrect or missing data during
amounts, incorrect member accounts, or input. The collector should review
transaction details) into the CASA module, each entry before submitting, and
leading to inaccurate records and potential supervisors should periodically
discrepancies in financial reporting. audit the input process.
Additionally, set up a secondary
verification process where
another staff member cross-
checks the data entered into the
CASA module.
Inaccurate Official Receipts: The Ensure that the receipt system is
collector might issue an incorrect receipt automated with built-in checks for
(e.g., wrong amounts, member details, or accurate member details,
receipt numbers), leading to discrepancies amounts, and unique receipt
between the actual cash collected and the numbers. Supervisors should
official receipt issued. regularly review the receipts
issued for accuracy. Implement
periodic audits of the receipts to
verify consistency.
Misalignment Between Collection Implement a reconciliation
Reports and Receipts: The collector may process that ensures the total
generate the collection report and blotter, amount recorded in the collection
but the amount in the receipts may not report matches the receipts
match the collection report due to errors in issued. This should include
data entry or record keeping. automated checks for
discrepancies between reports
and receipts. Supervisors should
review both documents and sign
off to confirm consistency before
forwarding them to accounting.
Fraudulent Transactions or Conduct regular audits of the
Misappropriation of Funds: The collector collection process to ensure that
may misappropriate funds or record all transactions are legitimate.
fraudulent transactions in the system, Use segregation of duties so that
causing financial loss and discrepancies in different people are responsible
cash flow. for cash handling, transaction
recording, and reconciliation.
Implement dual controls or
require a supervisor's approval
for large or unusual transactions.
Failure to Identify Errors in Cash Implement a mandatory cash
Transfer or Blotter: The collector might count procedure before
not notice discrepancies between the submission to the cashier,
actual cash collected and the amounts ensuring the cash on hand
recorded in the blotter or transfer slip, matches the amounts listed in the
leading to errors when submitting cash for blotter. The collector should
review. conduct a self-check of the cash
and documents before forwarding
them for review. The cashier
should independently verify the
cash transfer and sign off on the
accuracy of the amounts.
Inefficient or Inaccurate Cash Require accounting to follow a
Reconciliation by Accounting: checklist or standard operating
Accounting may fail to reconcile the cash procedure (SOP) for verifying the
amounts with receipts and collection cash amounts against receipts
reports properly, potentially leading to and reports. Implement a
errors or undetected discrepancies in the reconciliation system that
financial records. automatically flags discrepancies
between the reported and actual
cash amounts, and accounting
should sign off after verification.
Missing or Incomplete Documentation: Implement a document tracking
The collection report, blotter, or receipts system that logs when reports
could be incomplete or lost during the and receipts are submitted and
submission process, causing difficulties in received. Ensure that all required
tracking or verifying the collections. documentation is completed and
signed off by both the collector
and accounting. Use digital
backups to prevent loss of
physical documents.
Delayed Submission of Cash and Set clear deadlines for the
Documentation: If the collector delays the collector to submit all
submission of the blotter, collection report, documentation and cash.
and cash transfer slip, it could result in Supervisors should enforce timely
delayed reconciliations and reports, submission by checking daily
impacting the overall cash flow and completion and verifying that the
financial reporting. reports and cash are submitted
on time. Implement automated
reminders for submission
deadlines.
Cash Shortages or Overages During Perform regular cash counts at
Transfer: There may be discrepancies the end of the day and require a
between the cash amount collected and formal cash transfer slip with
the amount transferred to the cashier, detailed amounts to accompany
which could indicate cash shortages or the cash when it is forwarded to
overages. the cashier. The cashier should
verify the amount and sign off on
the transfer slip. Conduct random
cash audits to verify accuracy.
Failure to Reconcile Collections Set up a real-time or daily
Promptly: The delay in reconciling reconciliation process where the
collections can result in inaccurate accounting team verifies
financial records and may lead to issues collections, reports, and receipts
with reporting or identifying discrepancies promptly. Implement automated
in the future. systems to track the status of
each collection and reconcile the
data without delay.