News Archive
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AGIA Position Paper on the Institutionalization of Internal Audit in the Government Agencies
May 13, 2011POSITION PAPER
ON THE INSTITUTIONALIZATION OF INTERNAL AUDIT SERVICE
IN THE NATIONAL GOVERNMENT AGENCIES (NGAs), GOVERNMENT- OWNED
AND/OR CONTROLLED CORPORATIONS/GOVERNMENT FINANCIAL INSTITUTIONS (GOCCs/GFIs),
STATE UNIVERSITIES AND COLLEGES (SUCs) AND LOCAL GOVERNMENT UNITS (LGUs)The institutionalization of Internal Audit Service (IAS) in all agencies of the national government is mandated under Republic Act No. 3456, otherwise known as the Internal Auditing Act of 1962. This law was later amended by Republic Act No. 4177 in 1965, which provided for the creation of Internal Audit Service in government-owned and/or controlled corporations. Subsequently, Administrative Order No. 278 was issued by then President Corazon C. Aquino directing all heads of government offices, agencies, government-owned and/or controlled corporations, including government financial institutions and local government units to organize Internal Audit Service in their respective offices, as an integral part of the organization.
To further ensure that IAS is institutionalized, Administrative Order No. 70 dated April 14, 2003 and Memorandum Circular No. 89 dated August 2005 were issued. These latest issuances provided for the strengthening of internal control systems in government offices, agencies, government-owned and/or controlled corporations, government financial institutions, state universities and colleges and local government units through the institutionalization of Internal Audit.
The guidelines for the institutionalization of IAS was initially laid down in the Department of Budget and Management (DBM) Budget Circular No. 2004-4 dated March 22, 2004. The most recent issuance on the guidelines in the organization and staffing of the IAS is DBM Circular Letter No. 2008-5 dated April 14, 2008.
Under AO Nos. 278 and 70, the Association of Government Internal Auditors (AGIA), Inc. is mandated to “ensure that internal audit practices, methods and procedures are improved and updated through continuing education and that all audit works for each government agency are conducted in conformity with the standards of the internal audit profession” and “to best serve the interests of their Offices, in particular, and of the government service, in general, all Heads and Staff of the Internal Audit Service shall cooperate and actively participate in the activities of the AGIA.”
The recently concluded Annual Convention of the Association of Government Internal Auditors (AGIA), Inc. held in Cagayan de Oro was attended by five hundred eighty six (586) government employees, representing the following agencies:
Sectors Represented
No. of Agencies/Sectors
No. of Participants
National Government Agencies
60
320
Local Government Units
27
73
Government-Owned and/or Controlled Corporations/Government Financial Institutions
26
121
State Universities and Colleges
18
72
TOTAL
131
586
In the said convention, the AGIA Board of Directors was again confronted with some of the most basic, but serious problems of public sector workers which were identified during the workshop conducted, the highlights of which are:
1. Absence/Lack of Internal Audit Service/Unit in their respective agencies
2. Absence/Lack of Plantilla Positions
The 68 agencies with IAS and those without IAS have indicated that there are no available plantilla positions for the staff of the IAS. This means that they carry their original plantilla items while they perform IAS functions. In some cases, those designated in the IAS are performing dual functions, that of IAS and the functions of their original positions.
3. Unclear Functions of IAS
It was disclosed that majority of the agencies, both those with IAS and without IAS are encountering problems on the functions of IAS. Though the DBM circulars and memoranda clearly state the functions of IAS in promoting efficiency and effectiveness in all government agencies, it seems that the functions of IAS are perceived in so many different ways and there is no clear delineation of functions.
In the light of the above, the AGIA strongly recommends the implementation of the provisions of RA 3456 as amended by RA 4177. Hence, the AGIA being the organization composed of different government internal auditors, shall take active participation in revisiting the related issuances on internal control and internal auditing to address the above issues and concerns.
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The Board Unanimously Approved the Awards and Incentives Program (Resolution No. 2011-005; June 14, 2011)
April 25, 2011ASSOCIATION OF GOVERNMENT INTERNAL AUDITORS
GUIDELINES FOR THE AWARDS AND INCENTIVES PROGRAMI. BASIC POLICY
The AGIA aims to promote competence, integrity, professionalism and commitment in internal auditing and provide monetary and non-monetary awards and incentives to recognize the exceptional performance, innovative ideas, ethical behavior, superior accomplishments and other personal efforts that contribute to transparency, accountability, good governance and responsiveness in public service.II. OBJECTIVE
To encourage, recognize and reward AGIA members, individually and in groups, for outstanding contributions, innovations, exemplary behavior, extraordinary services, and dedication to government internal auditing that promote improvements in operations.III. SCOPE
The Program covers all AGIA members in National Government Agencies (NGAs), Government Owned and Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), Local Government Units (LGUs), State Universities and Colleges (SUCs), Constitutional Bodies, including the Legislative and Judicial Branches of the government, and the Uniformed Personnel.IV. TYPES OF AWARDS
A. Individual Awards Category
1. Outstanding AGIA Member per Sector – eight (8) Awardees
2. Outstanding Internal Auditor – one (1) AwardeeB. Group Award Category for the Outstanding Internal Audit Group – one (1) Awardee
V. TYPES OF INCENTIVES
A. Loyalty Incentive – this shall be granted to an officer or member of the Association who has rendered continuous service as follows:
1. 5 years – AGIA pin
2. Above 5 -10 years – AGIA pin and Certificate of Loyalty
3. Above 10 years – AGIA pin, Certificate of Loyalty and AGIA ballpenB. Biggest Delegation – a monetary reward of P3,000.00 shall be given to the agency with the biggest delegation including Regional Offices with a minimum number of 20 participants, during the AGIA Annual Convention.
VI. RULES
A. Individual Awards Category - Outstanding AGIA Member per Sector
1. Selection shall be done with one (1) each for the Outstanding AGIA Member from NGAs, LGUs, GOCCs/GFIs, SUCs, Constitutional Bodies, including the Legislative and Judicial Branches of the government, and the Uniformed Personnel, for a total of eight (8) awardees.
2. The Member shall submit the Application Form for the Outstanding AGIA Member accompanied by the member’s profile and all pertinent documents for the last five years during which time the applicant is a member in good standing.
3. All documents shall be submitted to the AGIA Secretariat and shall be evaluated by the Committee created for the purpose for approval by the Board.B. Individual Awards Category - Outstanding Internal Auditor
1. There shall be one (1) awardee from among the Internal Auditors from NGAs, LGUs, GOCCs/GFIs, SUCs, Constitutional Bodies, including the Legislative and Judicial Branches of the government, and the Uniformed Personnel.
2. The Internal Auditor shall submit the Official Nomination Form from his/her immediate supervisor and shall be accompanied by the internal auditor’s profile and pertinent documents for the last five years, including justification for exemplary performance of the nominee.
3. All documents shall be submitted to the AGIA Secretariat and shall be evaluated by the Committee created for the purpose for approval by the Board.C. Group Awards Category – Outstanding Internal Audit Group
1. There shall be one (1) group awardee from among Internal Audit Service/Division/Section/Unit from NGAs, LGUs, GOCCs/GFIs, SUCs, Constitutional Bodies, including the Legislative and Judicial Branches of the government, and the Uniformed Personnel.
2. The Internal Audit Group shall submit the Official Nomination Form from their immediate supervisor and shall be accompanied by the internal audit group’s profile and pertinent documents for the last five years, including justification for exemplary performance of the group nominee.
3. All documents shall be submitted to the AGIA Secretariat and shall be evaluated by the Committee created for the purpose for approval by the Board.VII. CRITERIA FOR SELECTION AND EVALUATION
CRITERIA FOR SELECTION
A. Individual Awards Category – Outstanding AGIA Member
1. S/he must be a member in good standing as certified by the AGIA Board.
2. S/he must be performing any internal audit related functions or occupying allied positions.
3. S/he must not have been charged or found guilty of any administrative or criminal offense and has no pending administrative or criminal case at the time of nomination. A Certification from the Agency must be submitted to this effect.
4. S/he must have a performance rating of at least Very Satisfactory for the last three years.B. Individual Awards Category – Outstanding Internal Auditor
1. S/he must be a member in good standing as certified by the AGIA Board.
2. S/he must be performing internal auditing functions and must be appointed and/or designated to an internal audit position.
3. S/he must not have been charged or found guilty of any administrative or criminal offense and has no pending administrative or criminal case at the time of nomination. A Certification from the Agency must be submitted to this effect.
4. S/he must have a performance rating of at least Very Satisfactory for the last three years.C. Group Awards Category – Outstanding Internal Audit Group
1. The group must be composed of members in good standing as certified by the AGIA Board.
2. The Agency/Office of the group must have an organized and fully operational Internal Audit Service (IAS), with approved plantilla positions, that conforms to DBM guidelines and other pertinent rules and regulations.
3. Any member of the group should not have been charged or found guilty of any administrative or criminal offense and has no pending administrative or criminal case at the time of nomination. A Certification from the Agency must be submitted to this effect.
4. All members of the group must have a performance rating of at least Very Satisfactory for the last three years.CRITERIA FOR EVALUATION
All nominees for the Individual and Group Awards Categories shall be evaluated based on publication, research, innovation, awards received, membership in professional organizations, expert services rendered and participation in training programs for the last five years.A. Individual Awards Category – Outstanding AGIA Member
1. Impact of Individual Achievement
a. Published work(book related to internal auditing) – original, edited, compiled or copyrighted/published
a.1 As single author = 7
a.2 As co-author = 5
a.3 As reviewer = 2
a.4 As translator = 2
a.5 As editor = 2
a.6 As compiler = 1b. Creative work, Innovations or Paper Presentation
b.1 Originality = 5
b.2 Relevance and Value = 3
b.3 Acceptability/Adaptability = 2c. Research/technical articles in a professional/technical journal
c.1 International =7
c.2 National = 5
c.3 Regional = 4
c.4 Local = 32. Expert services and participation in professional activities
a. Training programs
a.1 Participation in conferences, seminars and workshops attended
a.1.1 International = 5
a.1.2 National = 4
a.1.3 Regional = 3
a.1.4 Local = 2
Additional 2 points for seminars attended in AGIA
a.2 Training course
a.2.1 International = 5
a.2.2 National = 3
a.2.3 Regional = 2
a.2.4 Local = 1b. Expert services rendered
b.1 For services rendered as resource person, lecturer, guest speaker, trainer or coordinator in conferences, workshops or training courses
b.1.1 International = 10
b.1.2 National = 5
b.1.3 Regional = 4
b.1.4 Local = 2
Additional 2 points for seminars attended in AGIA3. Membership in Professional Organizations
a. Active Membership in any professional organization
a.1 International organization = 10
a.2 National organization = 5
a.3 Regional organization = 3
Additional point score of (2) if an officer of any organizationb. Scholarship/Fellowship
b.1 International = 5
b.2 National = 4
b.3 Regional = 3
b.4 Local = 24. Years of Government Service
a. One (1) point for every year of government service5. Awards of distinction received
a. International = 10
b. National = 7
c. Regional = 5
d. Local = 36. Professional Examinations – for every relevant licensure and other professional examinations passed
a. Board Examinations = 5
b. CESO Examination/CSEE = 4
c. Other Eligibility = 3
Additional point score of (2) if a Certified Internal AuditorB. Individual Awards Category – Outstanding Internal Auditor
1.Impact of Individual Achievement
a. Published work(book related to internal auditing) – original, edited, compiled or copyrighted/published
a.1 As single author = 5
a.2 As co-author = 3
a.3 As reviewer = 2
a.4 As translator = 2
a.5 As editor = 2
a.6 As compiler = 1b. Creative work, Innovations or Paper Presentation
b.1 Originality = 5
b.2 Relevance and Value = 3
b.3 Acceptability/Adaptability = 2c. Research/technical articles in a professional/technical journal
c.1 International =7
c.2 National = 5
c.3 Regional = 4
c.4 Local = 32. Expert services and participation in professional activities
a. Training programs
a.1 Participation in conferences, seminars and workshops attended
a.1.1 International = 5
a.1.2 National = 3
a.1.3 Regional = 2
a.1.4 Local = 1
Additional 2 points for seminars attended in AGIAa.2 Training course
a.2.1 International = 5
a.2.2 National = 3
a.2.3 Regional = 2
a.2.4 Local = 1b. Expert services rendered
b.1 For services rendered as resource person, lecturer, guest speaker, trainer or coordinator in conferences, workshops or training courses
b.1.1 International = 10
b.1.2 National = 5
b.1.3 Regional = 4
b.1.4 Local = 2
Additional 2 points for seminars attended in AGIA3. Membership in Professional Organizations
a. Active Membership in any professional organization
a.1 International organization = 10
a.2 National organization = 5
a.3 Regional organization = 3
Additional point score of (2) if an officer of any organizationb. Scholarship/Fellowship
b.1 International = 5
b.2 National = 3
b.3 Regional = 2
b.4 Local = 14. Years of Government Service
a. One (1) point for every year of government service5. Awards of distinction received
a. International = 10
b. National = 7
c. Regional = 5
d. Local = 36. Professional Examinations – for every relevant licensure and other professional examinations passed
a. Board Examination = 5
b. CESO Examination/CSEE = 4
c. Other Eligibility = 3
Additional point score of (5) if a Certified Internal AuditorC. Group Awards Category – Outstanding Internal Audit Group
1. Commitment to Quality Improvement = 50
a. Contribution to Agency’s operations
b. Sustainability
c. Demonstrated Teamwork and Cooperation2. Best Practice in Government Internal Auditing = 50
a. Relevance
b. Originality and Uniqueness
c. FeasibilityVIII. ELIGIBILITY FOR APPLICATION OR NOMINATION
All AGIA members are eligible to submit applications and/or nominations for the Award. However, incumbent members of the AGIA Board, the Awards Committee and AGIA employees are not eligible to apply, be nominated or nominate any member for any of the Awards.IX. AWARDING
The Awards shall be given during the AGIA Annual Convention.X. ANNEXES (Click here to download forms)
The following forms shall be used for the nomination and selection of the awardees:
A – Application Form for Outstanding AGIA Member for CY 2011
B – Nomination Form for Outstanding Internal Auditor for CY 2011
B-1 – Nominator’s Justification for the Outstanding Internal Auditor for CY 2011
C – Nomination Form for Outstanding Internal Audit Group for CY 2011
C-1 – Nominator’s Justification for the Outstanding Internal Audit Group for CY 2011