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100% found this document useful (2 votes)
8K views122 pagesBaics Doj
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Megz Sanchez FloresCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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/ 122
Republika ng Pilipinas
KAGAWARAN NG KATARUNGAN
Department of Justice
Manila
VNAII-DO-.
: Sea 03 1007
DEPARTMENT CIRCULAR NO. 0 0 4
TO Undersecretaries and Assistant Secretaries
The Prosecutor General
The Chief State Counsel
All Heads of Bureaus, Commissions and Offices
attached to the DOJ
SUBJECT BASELINE ASSESSMENT OF INTERNAL CONTROL
SYSTEM (BAICS)
In the exercise of the supervisory power of the Secretary of Justice
relative to management of internal control of systems and procedures in the
Department, for compliance is the accomplishment of the sets of questionnaire
attached hereto as “Annex A” (Baseline Assessment) and “Annex B” (Internal
Control Assessment), evaluating the agency's internal control components to
be accomplished by heads of offices/services.
Internal control, as defined In accounting and auditing policy of the
government refers to the process designed and effected to assure achievement
of an organization's objectives in operational effectiveness and efficiency and
reliable financial reporting in accordance with laws, regulations and policies.
The objective of BAICS is to come up with Department-Wide Internal
Control profile with identified opportunities to improve the efficiency of the
systems and procedures of the Department. Relative thereto, accomplished
questionnaires shall be forwarded to the Office of Undersecretary Reynante B.
Orceo which currently supervises the Internal Audit Services.
For strict compliance and guidance of all the concer
VITA! N. AGUIRRE IT
Daren
retary a cper nage
Copy furnished: ACE TU
All concerned. «Republika ng Pilipinas
KAGAWARAN NG KATARUNGAN
Department of Justice
Manila
MEMORANDUM FROM THE UNDERSECRETARY
FOR Undersecretaries and Assistant Secretaries
Ey The Prosecutor General
The Chief State Counsel
All Heads of Bureaus, Commissions and Offices
attached to the DOJ
SUBJECT INSTRUCTIONS FOR THE ACCOMPLISHMENT OF THE
BASELINE ASSESSMENT OF INTERNAL CONTROL SYSTEM
DATE 11 JANUARY 2017
Pursuant to Department Circular issued by the Secretary of Justice with the subject
Baseline Assessment of Internal Control System (BAICS) and in the interest of service,
attached herewith is the instructions for the accomplishment of the “Annex A and Annex
B" of the baseline assessment,
To expedite the development of the: Department-Wide Internal Control profile,
please submit the accomplished forms to the undersigned’s office on or before 31
January 2017. :
Should you need any clarification, your office may contact Ms. Juanita B. Chua and
Ms. Mignon T. Gonzales of the Internal Audit Service gt telephone numbers 524-74-09
and 523-84-81 local 273.
For compliance.
RI IANTE B. ORCEO
Indersecretary Republika ng Pilipinas
KAGAWARAN NG KATARUNGAN
Department of Justice
Manila
BASELINE ASSESSMENT OF INTERNAL CONTROL SYSTEM
A. Rationale:
Baseline assessment Is primarily done by the heads of services/offices from the
Department Secretary down to the regional and attached agency heads who exercise
supervision and control at their levels which can be utilized as a tool for management
improvement. This is composed of two parts, the baseline assessment proper and the
internal control assessment as follows:
a, Baseline Assessment Proper attached as Annex "A" is focus in the evaluation
of the effectiveness of the internal control system to determine the extent of
compliance and assess the adequacy of controls embedded in operating and
‘support systems/units, as well as evaluate the performance of programs,
projects and activities of the agency.
b, Internal Control Questionnaire attached as Annex "B" is focus in the
evaluation of the degree of compliance with each office mandate, policies,
government regulations, established objectives, systems and
procedures/processes and contractual obligations,
B. Purpose/ Objective:
The objective is to come-up with Department-Wide Internal Control profile with
identified opportunities to improve the efficiency of the systems and procedures of the
Department, In the long term, the assessment is viewed to provide adequate basis in
measuring the performance of different offices of the Department as well as to be
utilized to provide basis for the Performance-Based Bonus.
C. General Instruction:
For Annex A
a, The concerned head of service/office in the Department and attached Agency is
tasked to assign the completion of the matrix to the concerned officer/staff by
assessing the conditions pertaining to the questions. b. The contents of the matrix are designed to evaluate the agency's internal control
components. This has a pervasive effect on the overall system of Internal Control
because they represent the agency's nature and overall attitude towards internal
control. This matrix is divided into five interrelated components as follows:
1. Control Environment - This involves ways on how the specific office can
inform public officers and employees of their roles, responsibilities,
accountabilities, and authorities. They also include ways by which such office can
create an environment to better ensure that integrity and ethical values are not
compromised and those officers and employees receive and understand that
thrust.
2. Risk Assessment - This is used to identify and assess the external and internal
factors that could impact on the achievement of control objectives and provide a
basis for certain management controls.
3. Control Activities - This involves policies or procedures that help ensure that
the specific office's objectives are achieved and directives are completed.
4, Information and Communication - This involves how the specific office
identifies, captures, processes and reports information needed to achieve its
objectives.
5. Monitoring - This involves the specific office’s activities taken to assess the
achievement of control objectives and the quality of internal control system
performance,
The matrix consists of seven (7) columns with the following headings and defined as
follows:
1. Area is the functions/procedures/process or section relevant to internal control.
2. Criteria are standards, laws, rules or regulations on which action/decision or
process should have been based,
3. Question is a test of compliance based on criteria.
4, "Yes" or “No”, “Yes” answers to questions would require submission of
evidence by the personnel concerned.
5. Explanation is a statement that makes something clear or a reason/justification
for the answer to the question. 6. Reference Documents is the lawful foundation or support to the explanation
such as flowchart, laws and regulations, Department Order, etc.
7. Recommendation indicates suggested improvements by the concerned head of
service,
For Annex B
Preparation of Internal Control Questionnaire (ICQ) is specific for each
service/office/ program/project and attached agency of the Department by constructing
questions that will answer about each (service/office/ program/project and attached
agency) performance of the activities which is consistent with each mandate. ICQ for
Board of Claims is attached as sample for Annex B to serve as guide in the preparation
of each own matrix. ‘The matrix is composed of five (5) columns with the following
headings and defined as follows:
1. Questions in the matrix are based on the existing laws, regulations, Department
Order, etc. that govern each existence, processes, and procedures.
2. "Yes" or “No”. “Yes” answers to questions would require submission of evidence
by the personnel concerned.
wo
Explanation is a statement that makes something clear or a reason justification
for the answer to the question.
4, Reference Documents is the lawful foundation or support to the explanation
such as flowchart, laws and regulations, Department Order, etc.
5, Recommendation indicates suggested improvements by the concemed head of
service.
D. The accomplished form is expected to be filled-up and submitted on or
before January 31, 2017. Should you need any clarification, your office
may contact Ms. Juanita B. Chua and Ms. Mignon T. Gonzales of the
Internal Audit Service at telephone numbers 524-74-09 and 523-84-81
local 273. Annex "A
DEPARTMENT OF JUSTICE
BASELINE ASSESSMENT OF INTERNAL CONTROL SYSTEM
Kindly complete the matrix by performing the following:
a. Please read each statement carefully and assess the conditions pertaining to the questions.
b. Answer with "YES" or "NO" in the space provided. Answers to questions would require an explanation and submission of evidence,
Such as a flowchart and other reference documents i.e. R.A., E.O., Department Order, etc.
Thank you.
Yes Cite
Area Criteria Questions or | Explanation | Reference | Recommendation
No Documents
I. Control Environment "An organizational chart is |i) Does the agency
1. Plan of Organization | a graphic presentation of | maintain an approved
1.1 Structural the units, functions or and current operational
Configuration | positions of an agency. _| organization chart?
‘The three basic types of | 2) re the functions well
organizational charts are: | defined to _ etter
(1) Structural understand the
Organizational Chart (2) _| objectives and
Functional Chart (3) responsibilities of each
Position Char unit?
* Department of Budget and Management Circular Letter 2007-6, "Manual on Position Classification", 19 February 2007 "The three basic types of
Organizational charts are: (1) Structural Organizational Chart - This chart is graphic representation of the organizational units in boxes, This chart provides
information about the general objective and responsibilities of each unit. The duties and responsibilities of a position are better understood by analyzing
{the functions of a unit. (3) Position Chart - This chart shows the authorized positions in the organizational unit, listed by item number, Position title and
salary grade, This chart ascertains the official location ofthe position and its relation to other positions in the organizational unit, organizational unit, listed
by item number, position title and salary grade. This chart ascertains the official location of the position and its relation to other positions in the
organizational unit. Yes Cite
Area Criteria Questions ‘or | Explanation| Reference | Recommendation
No Documents
"As a general rule, the
proposed organizational
structure and staffing must
be supportive of the core
functions identified by the
agency."”
1.2 Divisionalization | "The extent and size of [3) Does the
divisionalization shall take | organizational chart.
into account the functional | clearly define lines of
distribution, workload, | authority and
span of control, type and | responsibility?
variety of skills/expertise [4) Is the number of
required, the number of | positions in the agency
personnel for each type of | does not exceed the
expertise, and the | number prescribed by
geographical location of | law?
the work station in order to | 5) Does the
ensure dear and effective | organizational chart
performance indicate the major staff
accountability." units of the agency such
as Planning, Financial
and Management,
Administrative and when
necessary Technical and
®DBM-CSC Joint Resolution No. 1, "Rationalization Program's Organization and Staffing Standards and Guidelines", 12 May 2006
*DBM-CSC Joint Resolution No. 1, "Rationalization Program's Organization and Staffing Standards and Guidelines", 12 May 2006 Criteria
Questions
Yes
Explanation
Cite
Reference
Documents
Recommendation
Legal Services?
1.3 Composition/Sub
division ofa
Department
“The organization of a
department is composed of
the Office of the Secretary
(OSec.), bureaus, services,
and field units, A
Department may have
agencies attached to it (for
policy/program
coordination) or under its
administrative supervision.
Tts bureaus, services,
and/or field units may
have divisions, In general,
field units smaller than as
regional office shall _no
longer have subdivisions."*
6) Does the
composition/subdivision
of the agency observe
the minimum standards
prescribed by DBM and
csc?
7) ‘Are the offices
grouped primarily on
the basis of major
functions to achieve
simplicity, economy and
efficiency in government
operations and minimize
duplication and
overlapping of functions
and activities?
14 Nature of,
Functions
"Department functions
should be decentralized in
order to reduce red tape,
free central officials from
administrative details
concerning field operations
and relieve them from
“DBM-CSC Joint Resolution No. 1,
8) Does the agency's
Planning Service
perform planning,
programming, and
project development,
and discharge such
other functions _as Yes Cite
Area Criteria Questions ‘or | Explanation | Reference | Recommendation
No Documents
unnecessary involvement | provided by law?
in routine and local
matters."
9) Does the agency's
Administrative Service
provide economical,
efficient and effective
services relating to
personnel, legal
assistance, information,
records, delivery and
receipt of
‘correspondence,
supplies, equipment,
collections,
disbursement, security
and custodial work and
such other functions as
provided by law?
10) Does the agency's
Financial and
Management Service
advise and assist the
Department,
Secretary/HoA on
financial and
management — matters
and perform such other
®DBM-CSC Joint Resolution No. 1, s. 2006 Yes Cite
Area Criteria ‘Questions or | Explanation | Reference | Recommendation
No Documents
functions as provided by
law?
11) Are the agencys
plans and programs
directly implemented by
the regional and field
offices as the operating
arms of the agency
concerned?
12) Are the
implemented plans and
programs in accordance
with approved policies
and standards?
13) As counterparts of
the agency in the
region, do they
undertake operations,
within their respective
jurisdictions?
1.5 Staffing Pattern
"AS a general rule, the
proposed organizational
structure and staffing must
be supportive of the core
14) Does the agency
conform with — the
required staffing pattern
guidelines issued by the Yes Cite
‘Area Criteria Questions or | Explanation | Reference | Recommendation
No Documents
functions identified by the
agengy.""
“Unless otherwise provided
by law or directed by the
President ofthe
Philippines, no
organizational units or
changes in key position in
any department or agency
shall be authorized in their
respective _ organizational
structures and — staffing
patterns and funded from
appropriations provided
under this Act."
“Every Secretary shall be
assisted by such number of
Undersecretaries as_may
be provided for by this
Code or by Law,"*
DBM and CSC and other
related laws?
‘DBM-CSC Joint Resolution No. 1 "Rationalization Program's Organization and Staffing Standards and Guidelines", 12 May 2006
"Sec. 78, RA No. 10147, GAA FY 2011
"Sec, 3(2) , EO 292 Yes Cite
Area Criteria Questions or | Explanation | Reference | Recommendation
No Documents
"Whenever necessary,
Assistant Secretary
position or positions may
be created to form part of
the Department proper’
1.6 Delegation
Authority
‘Supervision
of
and
“All transactions shall be
executed by persons acting
within the scope of their
authority."
"Top management shall
ensure that responsiblities
and authorities are defined
and communicated within
the organization."**
15) Is the authority and
responsibility for the
agency's operations, as
may be necessary to
implement the plans
and programs,
adequately delegated by
the DS/HoA to the
bureaus and_ regional
directors or ‘thelr
equivalent?
16) Is the delegation in
writing?
17) Does it indicate to
which officer or class of
officers _or employees
*sec. 3(3), FO 292
“Sec 49, Chapter 3, Volume Ill, Government Auditing Standards and Procedures and Internal Control System, Government Accounting and Auditing Manual,
2January 1992
“Clause 5.5.1, Government Quality Management Systems Standards, 21 June 2007 Area
Criteria
Questions
Yes
or
No
Explanation
Cite
Reference
Documents.
Recommendation
the delegation is to be
made?
18) Does it vest
sufficient authority to
enable the delegatee to
discharge his assigned
responsibilty?
19) 1s the
implementation of
national and —_local
programs in accordance
with policies and
standards developed by
the agency with the
participation of the
regional directors?
20) 1s the
implementation
economical, efficient
and effective?
17
Personnel
Responsibility
and Liability
“Expenditures
of
government funds or uses
of government property in
violation of law or
regulations _ shall
be_a
21) Does the agency
issue policy guidelines
‘on adherence to proper
utilization of public
funds and property? Yes Cite
Area Criteria Questions or | Explanation | Reference | Recommendation
No Documents
personal liability of the
official or employee found
to be directly responsible
therefor"
22) Are the public
officers or employees
who apply government
funds or property under
his administration or
control to any use other
than for which such
fund or property is
appropriated made
liable therefor?
23) Are the public
officers and employees
who are directly
responsible for unlawful
expenditures. of
government funds or
uses of government
property made
personally liable
‘therefor?
Sec 52, Chapter 9, Subtitle B, Title 1, Books V, EO 292, "Administrative Code of 1987 Yes: Cite
Area Criteria Questions or | Explanation | Reference | Recommendation
No Documents
24) Are the public
officers and employees
who are directly
charged inthe
processing, review and
evaluation of documents
made personally liable
for unlawful
expenditures of
government funds or
uses of government
property resulting in the
approval of said
documents?
1.8 Supervision and | Supervision and control 25) Are those having
Control includes the authority to | supervision and control
act directly whenever a|take the responsibility
specific function —_is | for the following:
entrusted by law or| a. reviewing,
regulation = toa approving,
subordinate; direct. the reversing or
performance of duty; modifying acts
restrain the commission of and decisions of
acts; review, approve, subordinate
reverse or modify acts and officials or
decisions of subordinate units?;
officials or ~—units;|_b. determining
determine priorities in the priorities in the
10 Yes Cite
Area Criteria Questions or | Explanation | Reference | Recommendation
No Documents
execution of plans and execution of
programs; and prescribe plans and
standards, guidelines, programs?;
plans and programs. c._ prescribing
standards,
guidelines, plans
and programs?
1.9 Administrative | “Administrative supervision |26) Are those having
Supervision is limited to the authority | administrative
of a department or its supervision over an
equivalent to generally | agency/organization
oversee the operations of
such agencies and ensure
that they are managed
effectively, efficiently and
economically without
interference with day-
today activities. The
department can require
the submission of reports
and cause the conduct of
‘management audit,
performance _ evaluation
and inspection to
