2006 Ord No 11 - creating the city internal auditing unit

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON MARCH 01, 2006, AT THE CITY HALL.

PRESENT:

Hon. Rolen C. Paulino- - - - - - - - - - - - - - City Vice Mayor & Presiding Officer
Hon. Noel Y. Atienza- - - - - - - - - - - - - - - - City Councilor
Hon. Cynthia G. Cajudo - - - - - - - - - - - - - - “ “
Hon. Bella P. Asuncion - - - - - - - - - - - - - - “ “
Hon. Marey Beth D. Marzan- - - - - - - - - - - “ “
Hon. Angelina B. Andrada - - - - - - - - - - - - “ “
Hon. Brian Patrick H. Gordon - - - - - - - - - - “ “
Hon. Anselmo A. Aquino - - - - - - - - - - - - - “ “
Hon. Edwin J. Piano- - - - - - - - - - - - - - - - - “ “
Hon. Gina G. Perez - - - - - - - - - - - - - - - - - “ “
Hon. Robine Rose C. Buenafe - - - - - - - - - - SK Federation President
Hon. Napoleon F. Capistrano- - - - - - - - - - - President, Liga ng mga Barangay

ABSENT:

None.


WHEREAS, under Republic Act (RA) No. 3456 (Internal Auditing Act of 1962), as amended by RA No. 4177, there shall be created, organized and operated in all government agencies an Internal Audit Service (IAS) which shall assist the management to achieve efficient and effective fiscal administration and performance of agency affairs and functions;

WHEREAS, on March 29, 1989, Administrative Order (AO) No. 119 was issued, mandating government entities to strengthen its internal control systems and/or organize systems and procedures to that effect in coordination with the Department of Budget and Management (DBM);

WHEREAS, on April 14, 2003, AO No. 70 was issued mandating all heads of government agencies, GOCCs, GFIs, SUCs and LGUs to immediately organize an IAS in their respective offices, which shall function in accordance with the policies established by the provisions of RA No. 3456, as amended by RA No. 4177;

WHEREAS, on March 22, 2004, DBM Budget Circular No. 2004-4 was issued providing the guidelines on the organization and staffing of Internal Auditing Units (IAUs);

WHEREAS, the City Government deems that it is in the best interest of the City that a separate Internal Auditing Unit be created to maintain its independence, objectivity and integrity;

NOW, THEREFORE, on motion of Councilor Edwin J. Piano, with the unanimous accord of the Members of the Sangguniang Panlungsod present,




Con’t. of Ordinance No. 11, Series of 2006.

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RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod in session assembled, to enact the following Ordinance:


ORDINANCE NO. 11
(Series of 2006)

AN ORDINANCE CREATING THE CITY INTERNAL AUDITING UNIT


BE IT ORDAINED BY THE SANGGUNIANG PANLUNGSOD IN SESSION ASSEMBLED, THAT:

SECTION 1. The City Internal Auditing Unit is hereby created whose functions shall be as follows:

1. Appraisal of procedures and related matters, including expressing an opinion as to the efficiency or adequacy of existing procedures and appraising personnel efficiency;
2. Verification and analysis of financial and operations data to ascertain if attendant management information systems generate data or reports that are complete, accurate and valid;
3. Perform activities to verify the extent of compliance to laws, rules, regulations and standard procedures, such as but not limited to: (a) determining that accounting procedures or other policies are being followed, (b) operating procedures are being properly implemented, (c) governmental regulations are being complied with, (d) performance targets are being achieved, and (e) other contractual obligations are being met;
4. Conduct audits of a protective nature, such as prevention and detection of fraud or dishonesty, review of cases involving misuse of the city government’s properties, and checking of transactions with outside parties; and
5. Carry out other related services, including special investigations and assistance to outside contacts such as the COA.


SECTION 2. The Chief Internal Auditor (CIA), being the head of this office, shall be under and report directly to the City Mayor. The organizational structure of this unit is hereby created as follows:







Con’t. of Ordinance No. 11, Series of 2006.

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Chief Internal Auditor
[SG-__]
Internal Audit Analyst III
(Operations Audit)
[SG-__]

Internal Audit Analyst IV
(Financial Audit)
[SG- ]

Internal Audit Analyst II
(Special Audit)
[SG- ]
2 Internal Audit Assistants
(Financial Audit)
[SG - ]
2 Internal Audit Assistants
(Operations Audit)
[SG - ]
1 Internal Audit
Assistant
(Special Audit)
[SG – ]


The Personnel Office shall be responsible in the formulation of the job descriptions of each item in the organizational structure. Their salary grades shall also be determined after further consultations had been finalized.

SECTION 3. For the effective implementation of this ordinance, an amount to be later determined by the City Budget Office shall be appropriated under a Supplemental Budget from the Office of the City Mayor for the calendar year 2006.

SECTION 4. This Ordinance shall take effect upon its approval subject to existing government accounting and auditing rules and procedures.

APPROVED UNANIMOUSLY, March 01, 2006.


ROLEN C. PAULINO
City Vice Mayor & Presiding Officer


NOEL Y. ATIENZA CYNTHIA G. CAJUDO
City Councilor City Councilor


BELLA P. ASUNCION MAREY BETH D. MARZAN
City Councilor City Councilor





Con’t. of Ordinance No. 11, Series of 2006.

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ANGELINA B. ANDRADA BRIAN PATRICK H. GORDON
City Councilor City Councilor
ANSELMO A. AQUINO EDWIN J. PIANO
City Councilor City Councilor


GINA G. PEREZ NAPOLEON F. CAPISTRANO
City Councilor President, Liga ng mga Barangay


ROBINE ROSE C. BUENAFE
SK Federation President


ATTEST:

JOCELYN P. NIÑONUEVO
Temporary Council Secretary

APPROVED BY HIS HONOR, THE CITY MAYOR ON______________________.


JAMES GORDON, JR.
City Mayor
ATTEST:

DELFIN A. JUICO, JR.
Secretary to the City Mayor