Internal audit office pushed

CEBU, Philippines - To protect the city government’s assets from losing to fraud and incorrect procedures, the Internal Control Office is pushing for its departmentalization to allow them to widen its scope and have more people to watch over each government transaction.

ICO acting chief and Assistant City Administrator Veronica Morelos said that departmentalization is necessary to give them independent power to do its functions without threats of being influenced by the department it exists under.

Currently, ICO is under the office of the City Administrator headed by Jose Marie Poblete. Upon the approval of the reorganization in the council, it will already be called the Internal Audit Service Office.

Morelos said that though the ICO maintains a level of independence under the City Administrator’s Office, they must take into consideration possible pressure in the future that they need to prevent, thus, they prefer to be an independent body at the city hall.

She added that this is important because their scope of work is increasing as the city keeps on growing.

“Even other Local Government Units smaller than Cebu City have their internal control office as an independent department, why not us? Besides, this is mandated by the law long ago, we are already delayed in implementation,” Morelos said.

Having an IASO is mandated under Republic Act 4177 which amended R.A. 3456 otherwise known as the Internal Audit Act of 1962.

It orders the creation of an internal audit services which “shall assist management to achieve an efficient and effective fiscal administration and performance of agency affairs and functions.”

The IASO shall be responsible for “the promulgation and enforcement of general policies, rules and regulations on internal auditing. The auditor shall coordinate and schedule the gradual installation of internal audit services in all departments.”

Morelos said that the office shall perform all kinds of audit such as operation audit, personnel audit and management audit.

Aside from safeguarding the assets of the city, they aim to improve services, minimize delay in transactions and help them comply with the Commission on Audit.

Once the office is created, they will conduct a study and evaluation on procedural losses and gains and other data for analysis.

Currently, ICO’s functions include the review of procedures and processes, organizational structure, asset management records, reports and performance standards of the departments or offices.

They also verify and analyze financial and operations data to ascertain if attendant management information systems, data or reports are complete, accurate and valid.

ICO also prevents and detect fraud or dishonesty; review of cases involving misuse of agency property; and checking of transactions with outside parties. (FREEMAN)