Creating and Directing Composite Special Audit Team to Audit the Center in Accordance with Specified Directives

October 31, 2008 DOF DEPARTMENT ORDER NO. 029-08 ( Declared Overtaken by Events by D.O. 29-16 ) CREATING AND DIRECTING COMPOSITE SPECIAL AUDIT TEAM TO AUDIT THE CENTER IN ACCORDANCE WITH SPECIFIED DIRECTIVES In view of the recommendation of the Executive Committee of the One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center (CENTER) and in line with the policy of the government to simplify the processing of tax credits and safeguard the tax credit system from undue claims, a composite Special Audit Team is hereby created and directed to audit the CENTER in accordance with the herein directives. 1. The Special Audit Team shall be composed of the DOF-Internal Audit Office (DOF-IAO) and three (3) representatives each from the CENTER, the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR). It shall be organized once the Chairperson of the CENTER Executive Committee informs the DOF-IAO in writing of the names of the representatives of the concerned agencies. Accordingly, the CENTER, BIR and BOC must submit to the Chairperson of the CENTER Executive Committee the names of their respective representatives within fifteen (15) days from date of effectiveness of this Order. 2. The Special Audit Team shall conduct the following audit functions in accordance with the standards provided under Administrative Order No. 70 s. 2003 and other pertinent guidelines, rules and regulations: a. Conduct management and operations performance audit of the CENTER's activities and determine the degree of compliance with its mandate, policies, government regulations, established objectives, systems and procedures/processes and contractual obligations; cEaSHC b. Review and appraise systems and procedures/processes, organizational structure, assets management practices, financial and management records, reports and performance standards of the CENTER; and, c. Analyze and evaluate management deficiencies and assist the Executive Committee and top officials of the CENTER by recommending realistic courses of action. 3. The audit herein authorized shall extend to existing systems and procedures/processes which are observed in the BOC and in the BIR with respect to tax credit certificates issued jointly by the said bureaus with the CENTER. 4. The Special Audit Team must complete the audit within a period of four (4) months from date of its organization, and submit its report to the Office of the Secretary, copy furnished the CENTER Executive Committee, within thirty (30) days from the date of completion of the audit. 5. In line with paragraph 2 (c) of this Order, the report of the Special Audit Team should recommend realistic courses of action which the CENTER and/or the Department may take consistent with the mandate of the CENTER and other existing laws, rules and regulations. 6. Within sixty (60) days from the date of receipt by the CENTER Executive Committee of the report of the Special Audit Team, the Chairperson of the CENTER Executive Committee shall submit to the Office of the Secretary a report on the actions taken by the CENTER, BOC and BIR in relation to the recommendations of the Special Audit Team. This Order shall take effect immediately and all concerned should be guided accordingly. (SGD.) MARGARITO B. TEVES Secretary