City officials undergo internal audit training

CEBU, Philippines — The Cebu City government is strengthening its internal audit systems through a five-day capacity building program as Mayor Nestor Archival seeks to ensure accountability, transparency, and efficiency in public service delivery.

Organized by the Internal Audit Service Office (IASO), the seminar dubbed “Strengthening Internal Control Systems and Internal Audit” convened department heads and division chiefs alongside councilors Alvin Arcilla, Winston Pepito, and Harry Eran.

Director John Aries Macaspac of the Department of Budget and Management’s Systems and Productivity Improvement Bureau (DBM SPIB) served as the resource speaker. He stressed national standards for internal control and audit.

Archival explained why the effort is crucial.

“If you don’t have the right auditing process, ma-problema gyud ta. Auditing, for me, is very important because this is how we gauge ourselves in order for us to do better. I hope that right after this, naa tay produkto nga makita so that we have something to go forward with,” the mayor said.

The program’s first three days focused on the Baseline Assessment of Internal Control Systems (BAICS), a diagnostic tool developed by DBM.

BAICS is part of the National Guidelines on Internal Control Systems (NGICS), which provide the overarching framework for internal controls in government.

BAICS works by mapping an agency’s internal control environment, identifying weaknesses, and assessing risks.

It produces a baseline profile of how well controls are functioning, which then guides risk-based audit planning.

In practice, this means Cebu City can prioritize audits on stalled infrastructure projects, procurement processes, or departments flagged by the Commission on Audit, rather than spreading audit efforts too thin.

This move aligns with DBM’s broader reform agenda.

The agency has issued the Revised Philippine Government Internal Audit Manual (RPGIAM) for national agencies and the Internal Audit Manual for Local Government Units (IAM for LGUs, 2023 edition), which sets standards for cities, municipalities, and provinces.

Through its Systems and Productivity Improvement Bureau, DBM has been rolling out training programs nationwide, including regional workshops on BAICS, compliance audits, and risk-based planning.

These efforts aim to professionalize internal audit, embed risk management into government operations, and ensure that public resources are safeguarded.

Archival’s push comes in the wake of the COA’s 2025 report, which found that Cebu City had spent only 7.98 percent of its P4.32 billion Development Fund, leaving 41 priority infrastructure projects worth P2.11 billion delayed or stalled, among other matters flagged by COA.

COA cited procurement bottlenecks, weak project execution, and manpower shortages in the Department of Engineering and Public Works.

To address these gaps, Archival pledged to hire more engineers and explore outsourcing technical work.

For the mayor, auditing is not just about compliance but about producing “something to go forward with”—a way to measure progress, safeguard resources, and demonstrate that government can deliver results. (FREEMAN)