March 21, 2006
DAR ADMINISTRATIVE ORDER NO. 03-06
SUBJECT : Audit Agenda of the Internal Audit Service for CY 2006
I. PREFATORY STATEMENT
Administrative Order (AO) No. 70 of the Office of the President dated 14 April 2003 was issued to strengthen the internal control systems of the government offices, agencies, government-owned and/or controlled corporations, including government financial institutions, state universities and colleges and local government units by creating Internal Audit Service (IAS) in their respective offices. EACIaT
The Department of Budget and Management (DBM), thereafter, issued Budget Circular No. 2004-4 dated 22 March 2004 providing for the "Guidelines on the Organization and Staffing of Internal Auditing Units (IAUs)" consistent with AO 70 (2003).
During the Presidential Anti-Corruption Workshop held on 15-17 December 2004, the "22-Integrity Development Action Plan (IDAP) National Framework" was developed and presented to the President. Prevention Action No. 1 includes the 'Strengthening of Internal Control through Institutionalization of Internal Audit Unit". AcHEaS
The above issuances were reiterated in Memorandum Circular No. 89 of the Office of the President on 18 August 2005 which enjoined all Heads of Agencies to comply with AO 70 (2003); observe the guidelines set forth under DBM Budget Circular No. 2004-4; and submit report of compliance to the Office of the Executive Secretary.
In view of its implementation, the Charter of Internal Audit Service of the Department of Agrarian Reform was instituted on 09 July 2005 thru DAR Administrative Order No. 3, series of 2005. This defines the parameters, standards and operational procedures that must be adopted by the Internal Auditors in the discharge of their functions. CaATDE
II. STATEMENT OF POLICY
In pursuance to the provisions of the above directives and in consonance with the DAR-IAS Charter, the following audit activities to constitute the Audit Agenda of the Internal Audit Service are hereby approved for implementation for CY 2006:
1. Audit of Unliquidated Cash Advance (based on 2005 COA Annual Audit Report)
2. Supply and Property Systems Audit (Compliance with RA 9184)
3. Operations and Performance Audit for CY 2005 CDAcIT
4. Validation of EP/CLOAs Issued/Awarded from CY 1988-2001
5. Land Use Conversion Cases (LUC) Inventory Audit
6. Agrarian Legal Implementation (ALI) Cases Inventory Audit
7. DARAB Administrative System and Procedures Audit (CY 2005)
8. Land Survey Fund Management System Audit for CY 2004
9. Financial Management System Audit (under NGAS)
10. Special Audit Assignments as called upon by the Secretary EcDSTI
All officials and concerned employees are hereby directed to extend full support and cooperation to the Internal Auditors during the conduct of their audit. All Internal Auditors are expected to conduct the audit according to the appropriate methodologies and submit required reports on or before the set deadline.
This Administrative Order shall take effect immediately. Any circular, order and/or issuance inconsistent herewith is hereby modified and superseded accordingly.
Diliman, Quezon City, 21 March, 2006. ECSaAc
(SGD.) NASSER C. PANGANDAMAN