Department of Labor and Employment Qualified Department of National Defence Qualified Department of Public Works and Highways Adverse Department of Science and Technology Qualified Department of Social Welfare and Development Qualified Department of Tourism Qualified Department of Trade and Industry Qualified Department of Transportation and Communication Adverse Metropolitan Manila Development Authority Adverse National Economic Development Authority Qualified Philippine National Police Qualified Indicator Score Meaning of PEFA score Evidence PI-20. Effectiveness of D+ internal controls for expenditure (i) Effectiveness of C Expenditure commitment control ABM and SARO DBM’s expenditure commitment procedures exist and are partially effective, mechanisms are used to controls. but they may not comprehensively cover control agency expenditures all expenditures or they may occasionally but these do not limit be violated.. commitments to actual cash availability. NCA DBM’s constrains the release of funds and is based on cash availability. (ii) Comprehensiveness, C Other internal control rules and procedures Reporting and post purchase relevance and consist of a basic set of rules for order controls are lacking as understanding of other processing and recording transactions, evidenced in COA audit internal control rules/ which are understood by those directly reports procedures. involved in their application. Some rules and procedures may be excessive, while controls may be deficient in areas of minor importance. (iii) Degree of compliance D The core set of rules are not complied with The vast majority of COA with rules for processing on a routine and widespread basis due to AAR opinions for national and recording direct breach of rules or unjustified routine government agencies are transactions. use of simplified/emergency procedures. either qualified or adverse. Scoring methodology M1 PI-21 Effectiveness of internal audit Internal control mechanisms can be improved through the effective use by management of internal audit. Internal audit capability is assessed by reviewing its coverage and quality, frequency and distribution of reports and extent of management response. Coverage and quality of the internal audit function and frequency and The establishment of the internal audit function was authorized distribution of reports: under the Internal Audit Code and under Administrative Order No. 70 of April 2003
Department of Labor and Employment Qualified Department of National Defence Qualified Department of Public Works and Highways Adverse Department of Science and Technology Qualified Department of Social Welfare and Development Qualified Department of Tourism Qualified Department of Trade and Industry Qualified Department of Transportation and Communication Adverse Metropolitan Manila Development Authority Adverse National Economic Development Authority Qualified Philippine National Police Qualified Indicator Score Meaning of PEFA score Evidence PI-20. Effectiveness of internal controls for expenditure D+ (i) Effectiveness of expenditure commitment controls. C Expenditure commitment control procedures exist and are partially effective, but they may not comprehensively cover all expenditures or they may occasionally be violated.. DBM’s ABM and SARO mechanisms are used to control agency expenditures but these do not limit commitments to actual cash availability. DBM’s NCA constrains the release of funds and is based on cash availability. (ii) Comprehensiveness, relevance and understanding of other internal control rules/ procedures. C Other internal control rules and procedures consist of a basic set of rules for processing and recording transactions, which are understood by those directly involved in their application. Some rules and procedures may be excessive, while controls may be deficient in areas of minor importance. Reporting and post purchase order controls are lacking as evidenced in COA audit reports (iii) Degree of compliance with rules for processing and recording transactions. D The core set of rules are not complied with on a routine and widespread basis due to direct breach of rules or unjustified routine use of simplified/emergency procedures. The vast majority of COA AAR opinions for national government agencies are either qualified or adverse. Scoring methodology M1 PI-21 Effectiveness of internal audit Internal control mechanisms can be improved through the effective use by management of internal audit. Internal audit capability is assessed by reviewing its coverage and quality, frequency and distribution of reports and extent of management response. Coverage and quality of the internal audit function and frequency and distribution of reports: The establishment of the internal audit function was authorized under the Internal Audit Code and under Administrative Order No. 70 of April 2003