MANILA City Ordinance No. 8426 (2015)

MALAYA (28 OCT 2015)

[ MANILA CITY ORDINANCE NO. 8426, October 20, 2015 ]

REGULAR SESSION NO. 173 9th CITY COUNCIL

Begun and held in the City Council on Tuesday, the sixteenth day of June, Two Thousand Fifteen AN ORDINANCE CREATING THE INTERNAL AUDIT SERVICE IN THE CITY OF MANILAAND PROVIDING FUNDS THEREFORE ADMINISTRATION MEASURE PRINCIPAL AUTHORS:

HON. MARLON M. LACSON Majority Floor Leader HON. JOHN MARVIN "Yul Servo" NIETO and HON. ERNESTO M. DIONISIO, JR. Acting Majority Floor Leader Be it ordained by the City Council of Manila, in session assembled, THAT:

SECTION 1. Creation. – There shall be created an Internal Audit Service Department in the City of Manila.

SEC. 2. Functions. – The Internal Audit Service Department shall perform the following functions:

a) Advise the City Mayor through the Audit Committee, on all matters relating to management control and operations audits;

b) Conduct management and operations audits of all City of Manila Departments, bureaus, hospitals, schools and universities and other offices as regards their functions, programs, projects, activities with outputs, and determine the degree of compliance with their respective mandate, policies, government regulations, established objectives, systems and procedures/processes and contractual obligations;c) Review and appraise systems and procedures, organizational structures, asset management practices, financial and management records, reports and performance standards of all the City of Manila Departments, bureaus, hospitals, schools and universities and other offices;

d) Analyze and evaluate management deficiencies and assist the Local Chief Executive by recommending realistic courses of action;

e) Perform such other related duties and responsibilities as may be assigned or delegated by the Local Chief Executive or as may be required by law; and f) In the conduct of management or operations audit, the Internal Audit Service shall be guided by the Philippine Government Internal Audit Manual, which forms part of this Ordinance.

SEC. 3. Organizational Structure. – The Internal Audit Service shall be directly reporting to the Local Chief Executive. It shall be headed by a Department Head III and shall have a co-terminous position as that of the appointing authority. It shall have three divisions, namely, Management, Operations and Administrative Divisions. It shall exist independent from all the other departments in the local government unit. The organizational structure, in relation to the other offices in the City of Manila shall be as follows: See MANILA CITY ORDINANCE NO. 8426, SEC. 3. Organizational Structure ; Malaya (October 28, 2015) ; E-Library Service.

SEC. 4. The Internal Audit Department Head. – The Internal Audit Department Head shall be appointed by the City Mayor with the concurrence of the Sangguniang Panlungsod. He shall be directly reporting to the City Mayor. He shall hold the position of a Department Head III with salary grade 27 and shall have a co-terminous position as that of the appointing authority and shall have the following qualifications: Education Any of the following: Master's Degree in Accounting, Public Administration, Criminology, Information Technology/ Computer Science and other related disciplines. Bachelor's Degree in law would be an advantage. Experience 5 years of supervisory of relevant experience in one or a combination of the following: Public Administration, Internal Auditing, Administrative or Criminal Investigation, Forensics (e.g., Accounting, Information Technology), International Organization for Standardization (IOS) Management Systems and other related disciplines. Training 120 hours of managerial training in one or a combination of the following: Public Administration, Internal Auditing, Administrative or Criminal Investigation, Forensics (e.g., Accounting, Information Technology), Internal Organization for Standardization (IOS) Management Systems and other related disciplines. Eligibility Career Service (Professional) Second Level Eligibility/R.A. 1080

SEC. 5. Functions of Internal Audit Department Head. – The Internal Audit Department Head shall be responsible for:1. Ensuring the efficient and effective operation of the internal audit functions;

2. Developing strong professional relationships with the other Department Heads of the City of Manila and key stakeholders;

3. Leading the development of the internal audit strategic plan and annual work plan that outlines the objectives, priorities and proposed internal audit coverage; and 4. Liaising with other external monitoring and evaluation bodies in developing internal audit plans for the review and approval by the City Mayor.

SEC. 6. Internal Organizational Structure. –The Internal Audit Service shall have the following internal organizational structure: See MANILA CITY ORDINANCE NO. 8426, SEC. 6. Internal Organizational Structure ; Malaya (October 28, 2015) ; E-Library Service.

SEC. 7. Functions of Organizational Units. – The functions of the organizational units in the Internal Audit Service are as follows:

(a) Operations Audit Division. – The Operations Division shall perform the following:

1. Conduct operations performance audit of activities of all the departments, bureaus, offices and all other units and determine the degree of compliance with the mandate, policies, government regulations, established objectives, systems and procedures/ processes and contractual obligations (Section 2.4b, DBM Circular Letter No. 2008-5);

2. Review and appraise systems and procedures/processes, organizational structure, operations practices, operations records, reports and performance standards of the agencies/units covered (Section 2.4c, DBM Circular Letter No. 2008-5);

3. Verify and analyze operations data to ascertain if attendant management information systems generate data or reports that are complete, accurate and valid (Section 4.1.1.2, DBM Budget Circular No. 2004-4);

4. Ascertain the reliability and integrity of operational information and the means used to identify, measure, classify and report such information (Section 1.1.1, AO No. 278, S. 1992);

5. Review 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 (Section 1.1.5, AO 278, S. 1992);

6. Evaluate the quality of performance of groups/individuals in carrying out their assigned responsibilities (Section 1.1.6, AO 278, s. 1992);

7. Recommend courses of action on operational deficiencies observed (Section 1.1.7, AO 278 s. 1992); and 8. Perform functions of a protective nature, such as prevention and detection of fraud or dishonesty; review of cases involving misuse of agency property; and checking of transactions with outside parties (Section 4.1.1, DBM i. Perform miscellaneous services, including special investigations and assistance to outside contacts such as COA (Section 4.1.1.5, DBM Budget Circular No. 2004-4).(b) Management Division. – The Management Division shall have the following functions: (p. 59 of PGIAM) 1. Conduct management audit of activities and its units and determine the degree of compliance with the mandate, policies, government regulations, established objectives systems and procedures/ processes and contractual obligations (Section 2.4b, DBM Circular Letter No. 2008-5 and Section 1.1.2, AO 278, s. 1992);

2. Review and appraise systems and procedures/processes, organizational structure, assets management practices, financial and management records, reports and performance standards of the agencies/units covered (Section 2.4c, DBM Circular Letter No. 2008-5);

3. Verification and analysis of financial and management data to ascertain if attendant management information systems generate data or reports that are complete, accurate and valid (Section 4.1.1.2, DBM Budget Circular No. 2004-4);

4. Ascertain the reliability and integrity of financial and management information and means used to identify, measure, classify and report such information (Section 1.1.1, AO No. 278, s. 1992);

5. Ascertain the extent to which the assets and ojher resources of the institutions are accounted for and safeguarded from losses of all kinds (Section 1.1.3, AO 278, s. 1992);

6. Review and evaluate the soundness, adequacy and application of accounting, financial and management controls and promote the most effective control at reasonable cost (Section 1.1.4, AO 278, s. 1992);

7. Evaluate the quality of performance of groups/individuals in carrying out their assigned responsibilities (Section 1.1.6, AO 278, s. 1992);

8. Perform functions of a protective nature, such as prevention and detection of fraud or dishonesty; review of cases involving misuse of agency property; and checking of transactions with outside parties (Section 4.1.1.4, DBM Budget Circular No. 2004-4); and 9. Perform miscellaneous services, including special investigations and assistance to outside contacts such as COA (Section 4.1.1.5, DBM Budget Circular No. 2004-4).

(c) Administrative Division. – The Administrative Division shall have the following functions: Exercises supervision and control over the operation and management of the Division; Submits policy recommendations to the IAS Department Head as it relates to general administration services and functions; Implements office policies, laws, rules and regulations issued by the Civil Service Commission (CSC) and other authorities relating to general administrations services and functions; Provides advisory services to the IAS Department Head, as well as other officials and employees on general administrative services; Develops administrative systems and procedures for the IAS Department; and Performs such other functions as may be assigned by the IAS Department Head. The Administrative Division shall have the following sections:1. Human Resource Management Section 1.1 Keeps and maintains current plantilla of personnel, records and statistics; 1.2 Prepares payroll and maintains individual subsidiary ledgers of officers and employees; 1.3 Promotes employees welfare and morale and assists in developing and improving efficiency of personnel by providing the necessary information, and advises on personnel needs and problems; 1.4 Acts on all matters concerning attendance, leaves and absences, appointments, promotions, transfer and other personnel transactions; 1.5 Informs the employees of Civil Services rules and regulations and explains the consequences and impact of the reasons for the various personnel actions; 1.6 Identifies the training needs of IAS employees in preparation for the establishment of IAS' Human Resource Development Plan; 1.7 Performs liaison work in entities of the government concerned with personnel activities; and 1.8 Performs such other functions as may be assigned by the Division Chief and IAS Department Head.

2. Records and General Service Section 2.1 Implements policies and guidelines for the efficient and effective records management and archival administration; 2.2 Safeguards the official records and seal of IAS; 2.3 Establishes, implements, and maintains an organized internal records disposition program; 2.4 Authenticates official records, when necessary and represents IAS in the presentation of documents required by the courts and other administrative bodies; 2.5 Receives/ releases records created by IAS and those received from other agencies; 2.6 Provides messenger, liaison, and janitorial services; and 2.7 Performs other such functions as may be assigned by the Division Chief and the IAS Department Head.

3. Property and Supply Section 3.1 Develops and maintains an efficient and effective supply management system; 3.2 Takes custody of properties, equipment and supplies of the Department; 3.3 Procures, stores and distributes supplies and equipment, and conducts periodic inventories of the same; 3.4 Keeps and maintains Supply Ledger Card for monitoring of summary of Supplies and Material Issued (SSMI); 3.5 Prepares monthly SSMI report; 3.6 Conducts regular office equipment and supplies inventory; 3.7 Conducts studies, formulates and recommends measures for the most effective utilization and maintenance of the property, supplies and equipment and other facilities of the Department; and 3.8 Performs other such functions as may be assigned by the Division Chief and the IAS Department Head.4. Budget and Accounting Section 4.1 Assists the IAS Department Head in the preparation of Annual Budget Proposal of the Department; 4.2 Monitors financial transactions of the Department as against Advice of Allotment issued and obligated; 4.3 Prepares and processes payrolls, allowances and other monetary benefits of IAS employees and job order workers; 4.4 Processes Disbursements Voucher (DV), Journal Entries Voucher (JEV) and Allotments and Obligation Slip (ALOBS) of the Department; and 4.5 Performs other such functions as may be assigned by the Division Chief and the IAS Department Head.

SEC. 8. Staffing Pattern. – The Internal Audit Staff shall hold career positions. Each Division shall be headed by an Internal Auditor V with a Salary Grade 24. Each Division shall have two Sections to be headed by Internal Auditor IV with a Salary Grade 22. Each Section shall have two teams composed of Internal Auditors I, II, III and one Internal Auditing Assistant. Below are the number of positions and qualifications of the Internal Audit Staff: MANAGEMENT AUDIT DIVISION: IAS Positions/ Education Experience Training Eligibility Number of positions Chief Master's 4 years in a 24 hrs, of Career Service Administrative degree position relevant (Professional)/Second Officer relevant to involving training in level (Management the management management eligibity and position or and Audit Analyst supervision supervision V) (SG 24) 1 position Supervising Bachelor's 3 years of 16 hrs. of Career Service Administrative degree relevant relevant (Professional)/Second Officer relevant to experience training level (Management the eligibity Audit Analyst) position (SG 22) / 2 positions Administrative Bachelor's 2 years of 8 hrs. of Career Service Officer V degree relevant relevant (Professional)/Second (Management relevant to experience training level eligibity and the Audit Analyst position III) (SG-18) / 4 positionsAdministrative Bachelor's 1 years of 8 hrs. of Career Service Officer IV degree relevant relevant (Professional)/Second (Management relevant to experience training level eligibity an the Audit Analyst position II) (SG-15) / 4 positions Administrative Bachelor's None None Career Service Officer II degree Required Required (Professional)/Second (Management relevant to level eligibity an the Audit Analyst position I) (SG-11) / 4 positions Administrative Completion 1 year of 4 hours Career Service Officer II (SG of relevant relevant (Professional)/Second 8) 2 years of experience training level eligibity / 4 positions study in college OPERATIONS AUDIT DIVISION: IAS Positions/ Education Experience Training Eligibility Number of positions Chief Master's 4 years in a 24 hrs. of Career Service Administrative degree position relevant (Professional)/Second Officer V (SG relevant to the involving training in level 24) 1 position management management eligibity position or and supervision supervision Supervising Bachelor's 3 years of 16 hrs. of Career Service Administrative degreerelevant relevant relevant (Professional)/Second Officer Fiscal to the position experience training level Examiner IV) eligibity (SG 22) / 2 positions Fiscal Bachelor's 2 years of 8 hrs. of Career Service Examiner III degree relevant relevant (Professional)/Second (SG 18) / 4 relevant to the experience training level eligibity positions position Fiscal Bachelor's 1 years of 4 hrs. of Career Service Examiner II degree relevant relevant (Professional)/Second (SG 15) / 4 relevant to the experience training level eligibity positions position Fiscal Bachelor's None None Career Service Examiner II degree Required Required (Professional)/Second (SG 11 / 4 relevant to the level eligibity positions positionAdministrative Completion of 1 year of 4 hours First level eligibity Officer (SG 8) 2 years of relevant relevant / 4 positions study in experience training college The following are positions and qualification of other Non-Technical Staff: ADMINISTRATIVE DIVISION; Chief Master's Degree 4 years in a 24 hrs. of Career Service Administrative position training in (Professional)/Second Officer V (SG involving management level 24) 1 Management and eligibity position or supervision Supervision Supervising Bachelor's degree 3 years of 16 hrs. of Career Service Administrative relevant to the relevant relevant (Professional)/Second Officer (SG position experience training level 22) / 1 eligibity positions Administrative Bachelor's Degree 3 years of 8 hrs. of Career Service Officer V (SG relevant to the relevant relevant (Professional)/Second 18) / 4 position experience training level eligibity position Budget Officer Personnel Officer Record Officer Supply Officer Administrative Completion of 1 year of 4 hours Career Service Assistant III two years studies in relevant relevant (Sub- (SG 9) college or high school experience training Professional)/First / 4 positions graduate with relevant level eligibity vocational/trade course Administrative Completion of 1 year of 4 hours Career Service Assistant II two years studies in relevant relevant (Sub- (SG 8) college or high school experience training Professional)/First / 2 positions graduate with relevant level eligibity vocational/trade course Administrative Must be able to read 1 year of 4 hours Relevant MC 11 Aide VI (SG and write/elementary relevant relevant 1996 6) school graduate, high experience training / 2 positions school graduate or Career Service completion of (Sub-Professional) relevant first level eligibity vocational/completion of 2 years collegeAdministrative Must be able to read None None Relevant MC 11 Aide IV (SG- and write/elementary Required Required 1996 4) school graduate, high / 2 positions school graduate or Career Service completion of (Sub-Professional) relevant first level eligibity vocational/completion of 2 years college Administrative Must be able to read None None Relevant MC 11 Aide II (SG-2) and write/elementary Required Required 1996 / 2 positions school graduate, high school graduate or Career Service completion of (Sub-Professional) relevant first level eligibity vocational/completion of 2 years college Administrative Must be able to read None None Relevant MC 11 Aide I and write/elementary Required Required 1996 (SG-1)/2 school graduate, high positions school graduate or Career Service completion of (Sub-Professional) relevant first level eligibity vocational/completion of 2 years college

SEC. 9. Appropriation. – The initial appropriation for the creation and personnel complement of the Internal Audit Service shall be taken from the unfilled-up positions of the different departments and offices of the City of Manila, Upon approval of this Ordinance, the appropriation for the Internal Audit Service shall be regularly included in the Annual Budget.

SEC. 10. Transitory Provisions. – The City Mayor shall create an Ad-Hoc Committee that shall be responsible for setting up the Internal Audit Service within six-months from approval of this Ordinance. This Ad-Hoc Committee shall be composed of:

1. Secretary to the Mayor 2. City Accountant 3. City Budget Officer 4. Personnel Officer 5. Others as may be determined by the City Mayor

SEC. 11. Effectivity Clause. – This Ordinance shall take effect upon its approval. This Ordinance was finally enacted by the City Council of Manila on September 24, 2015.

PRESIDED BY: PRESIDED BY:(Sgd.) EDWARD V.P. MACEDA

President Pro-Tempore and Acting Presiding Officer City Council, Manila ATTESTED:

(Sgd.) LUCH R. GEMPIS, JR. City Government Department Head III (Secretary to the City Council) APPROVED BY HIS HONOR, THE MAYOR, ON 20 OCTOBER 2015

(Sgd.) JOSEPH EJERCITO ESTRADA Mayor City of Manila ATTESTED:

(Sgd.) EDWARD S. SERAPIO City Government Department Head III (Secretary to the Mayor)