INTERNAL AUDIT SERVICE OFFICE

In compliance with Administrative Order No. 278 Series of 1992, Executive Order No. 97-07 and the 2018 Annual Audit Report of the Commission on Audit, Municipal Ordinance No. 2019-02 that creates Internal Audit Service Office (IAS) under the direct administrative supervision and control of the Local Chief Executive (LCE), was unanimously approved by the Sangguniang Bayan, and affirmed by the LCE on the 15th of January 2019.

The main function of IAS is to examine records of activities of the Municipality subject to government laws and regulations.  It shall provide valuable support to the LCE in ensuring that:

  • Municipal assets and resources are safeguarded against misuse, loss or wastage;
  • revenues are collected; and
  • government funds are properly managed and spent in accordance with the laws and regulations of the State.

As an integral part of the Municipality, IAS shall assist Management in the effective discharge of its responsibilities insofar as it will not encroach on or be adversarial with the Auditors of the Commission on Audit.  It shall function in accordance with the policies provided for by RA 3456, as amended by RA 4177, and shall perform staff functions with primary responsibilities encompassing the examination and evaluation of the adequacy and effectiveness of internal control and the quality of performance.  The internal audit activities shall include the following:

  • ascertain reliability and integrity of financial and operational information, and the means used to identify, measure, classify and report such information;
  • determine extent of compliance and review systems established to ensure compliance with government policies, plans and procedures laws and regulations which have significant impact on operations;
  • establish extent to which assets and other resources of the Municipality are accounted for and safeguarded from losses;
  • review and evaluate soundness, adequacy and application of accounting, financial and other operating controls, and promote the most effective control at reasonable cost;
  • assess operations or programs to ascertain whether or not results are consistent with established objectives and goals, and whether or not such programs are being carried out as planned;
  • Evaluate the quality of performance of groups/ individuals in carrying out their assigned responsibilities; and
  • Recommend corrective actions on operational deficiencies/ lapses noted.

In addition to the above duties, the IAS may be called upon to perform special assignment by the LCE. However, it shall not be responsible for, or required to participate in procedures, which are essentially a part of a regular operating activity, or in operations that are primarily the responsibility of another unit of the Municipality. As such, it shall not perform the following functions of routine operating character:

  • Pre-audit vouchers and counter-sign of checks;
  • inspect deliveries, although the internal auditor may, as part of his examination, observe inspection;
  • prepare treasury and bank reconciliation statements;
  • develop and install systems and procedures, however, in exceptional cases, may assist by the way of giving suggestions preferably during the development stage;
  • take physical inventories, however, may review the plans in advance, observe and test-check the accuracy of counting, costing and summarizing;
  • maintain property records; and
  • perform all other activities related to operations.