DEPARTMENT OF HEALTH Office of the Secretary

1. DEPARTMENT OF HEALTHOffice of the Secretary INTERNAL AUDITING UNIT • VISION • Graft-Free DOH by year 2020 • MISSION • Responsive to the needs for a strong internal audit service in the DOH • Committed to the utmost ideals of public service. • GOAL • Assist all members of management from top to the lowest level of authority including • the rank-in-file in the effective discharge of their functions.

2. Cont. • VALUES • Honesty • Objectivity • Diligence • What is an Internal Auditing? • Independent objective assurance and consulting activity • Designed to add value and improve an organization’s operations. • Helps an organization accomplished its objectives • Brings systematic, disciplined approaches • Evaluate and improve the effectiveness of risks management, control & governance • processes.

3. OBJECTIVES OF INTERNAL AUDITING • Assist members of the organization in the effective discharge of their responsibilities. • Furnishes them with analysis, appraisals, recommendations, counsel, and information concerning the activities reviewed. • Promote effective control at reasonable cost. • Examples: a) policies, plans, regulations & etc. are being complies with. • b) revenues & expenditures properly accounted for. • c) others

4. SCOPE OF INTERNAL AUDITING • Encompasses the examination and evaluation of the adequacy and effectiveness of the organization’s system of internal control • Covers the quality of performance in carrying out assigned responsibilities. • DUTIES, FUNCTIONS AND RESPONSIBILITIES OF IAU as mandated • by Malacanang Administrative Order No. 278 s. 0f 1992. • Ascertain the reliability and integrity of financial & operational • information . • Means used to identify measures, classify & report such information

5. Cont. • Ascertain the extend of compliance with established policies and • applicable laws and regulations. • Review the system established to ensure compliance with government policies, • plans and procedures, laws and regulations which could have a significant • impact on operations; • Ascertain the extent to which the assets and resources of the institutions are • accounted for and safeguarded from losses of all kinds; • Review and evaluate the soundness, adequacy and application of accounting, • financial and other operating controls, • Promote the most effective control at reasonable cost.

6. Cont. • Review operations or programs to ascertain whether or not results • are consistent with established objective and goals and whether or • not such programs are being carried out as planned; • Evaluate the quality of performance of groups/individual in • carrying out their performance assigned responsibilities; and, • Recommend corrective actions on operational deficiencies observed.

7. Annual Accomplishment ReportCY 2006 % of Compliance Previous Audit Agencies AuditedFindings/RecommendationsFindings 1. CHD-Western Visayas Irregular payment of honorarium, forwarded to legal service for appropriate action SA* 2. CHD-Central Luzon Procedural lapses & strengthen Internal Control 90% 3. Jose Lingad Memo. -do- 80% 4. Dr. Paulino Garcia -do- 50% 5. Bataan Gen. Hosp. -do- 85% 6. Mariveles Mental Hosp. -do- 70% 7. Talavera Ext. Hosp. -do- 80% *Special Assignment

8. Cont. 8. Amang Rodriguez Med. Allegations w/out basis/Orientation of BAC RA 9184 SA 9. Nat’l. Children Hosp. Procedural lapses & strengthen internal control 61% 10. Batanes Gen. Hosp. -do- 58% 11. Luis Hora Memo. -do- 45% 12. CHD-Eastern Visayas -do- 62% 13. Eastern Visayas Reg’l. -do- 79% 14. Schistosomiasis Control -do- 78% 15. CHD-Caraga -do- 82% 16. Caraga Regional Hosp. -do- 95% 17. Adela Serra Ty -do- 89% 18. East Ave. Med. Center -so- 75% 19. CURDD* W/out MOA bet. DOH & PNP-strictly adhered provisions of EO 273 re-RA 9184 New *Center for Ultimate Rehabilitation of Drug Dependent

9. Cont. 20. CHD-Northern Min. Procedural lapses & strengthen internal control 75% 21. Northern Min. Med. -do- 81% 22. Mayor Hilarion Ramiro -do- 57% 23. DTRC* Unaccounted missing items. Official directed to account items New 24. Basilan Gen. Hosp. Splitting of POs & overpricing. Official directed to explain procurement infraction New 25. Sulu Sanitarium Procedural lapses & strengthen internal control New 26. CHD-Davao Region -do- 77% 27. Davao Med. Cntr. -do- 69% 28. Davao Reg’l. Hosp. -do- 71% 29. Davao Herbal Processing -do- New 30. CHD-Central Visayas -do- 59% *Drug Treatment & Rehabilitation Center (Bukidnon)

10. Cont. 31. St. Anthony Mother Procedural lapses & strengthen internal control 59% 32. NHTRC* -do- New 33. Eversley Child’s Sanitarium -do- 75% 34. Talisay District Hosp. -do- 45% 35. Don Emilio Del Valle -do- 75% 36. Gov. Celestino Gallares -do- 75% 37. PITAHC** -do- New 38. CHD-Central Luzon Procedural lapses, orientation of BAC RA 9184 SA Filed case w/ the supplier –RTC –Pampanga * New Horizon Treatment & Rehabilitation Center (Cebu) ** Philippine Institute of Traditional & Alternative Health Care

11. IAU CURRENT THRUSTS • Active Point Person for Prevention - DOH Integrity Development Committee. • Member as Assessor of the Integrity Development Review of Key Public Sector Agencies • (EC-OMB Corruption Prevention Project –DAP, OMB, PAGC & COA) • Schedule – DOH CO – February 7-8, 2007 • BFAD - February 20-22, 2007 • CHD-Iloilo - February 27 to March 3, 2007 • EAMC - March 6-8, 2007 • Group Compositions: • 1 - Namfrel • 1 - COA • 2 - DOH • 3 - Ombudsman • 2 - DAP

12. Cont. • Proposals included in the DOH Rationalization Plan • a. An Internal Audit Service with two (2) divisions of 57 personnel. • (31 or 54% of the proposed personnel compliment were recom- • mended to DBM for approval.) • - Field Office Audit Division • - Special & Policy/Standards Development Division • b. Local & Foreign Trainings • c. Audit Rating System – mechanic to be formulated