1. LAND BANK OF THE PHILIPPINES
Innovations and Best Practices in Internal Audit
GILDA E. PICO
President & CEO
AGIA Annual National Convention
October 8, 2015
Waterfront Cebu City Hotel and Casino

2. in Internal Audit” for CY 2013
LANDBANK was awarded by AGIA as the “Government Agency with Innovations and/or Best Practices
in Internal Audit” for CY 2013

3. LANDBANK A government financial institution with a unique dual role
Profits from its commercial banking operations finance the Bank’s development programs
Financial intermediary for the Comprehensive Agrarian Reform Program

4. LANDBANK
Continues to expand loan portfolio in favor of its priority sectors, which include:
Small farmers, fishers, and their associations
Small and medium enterprises
Agribusiness and other agri- and environment-related projects
Socialized housing, schools & hospitals
Major contributor to government funds – LANDBANK remitted the highest cash dividend among GOCCs this year

5. INDUSTRY RANKING (In Billion Pesos) Particulars Assets 1,090.0 4
As of June 2015
(P B)
Rank
Assets
1,090.0 4
Deposits
954.3
Loans
414.0
Capital
75.0 5

6. NUMBER OF BRANCHES, EXTENSION OFFICES AND SERVICING UNITS
NETWORK
(as of June 2015)
NUMBER OF BRANCHES, EXTENSION OFFICES AND SERVICING UNITS
Branches
EOs
Servicing Units
Total
N-NCRBG 33 10 43
S-NCRBG 32 1
NLBG 39
CLBG 35
SWLBG 28 5
SELBG 34 2 36
WVBG 24 26
EVBG 23
WMBG 30
EMBG 40
TOTAL
311 41
353
TOTAL NUMBER OF ATMs
1404

7. NUMBER OF EMPLOYEES TOTAL 2,591 5,940 8,531 (as of June 2015) RANK`
HEAD OFFICE
FIELD UNITS
Total
Officer
492
552
1,044
Rank & File
1,529
4,907
6,436
Contractual
570
481
1,051
TOTAL
2,591
5,940
8,531

8. 3 KEY POINTS IN GOVERNMENT
IA ROLE
INTEGRITY
BUILDING EFFECTIVE RELATIONSHIPS
CONTINUOUS LEARNING

9. INTEGRITY ‘Guardians’ of the company’s integrity
Professional mandate to exhibit integrity, trust, independence, and objectivity
Report on the company objectively
Requires more than just technical and communication skills
LANDBANK’s IAG employs a
rigorous selection process
to properly assess candidates

10. HOW DO WE EMPOWER OUR AUDITORS?
Develop the Competency Development Framework
Assess the current competency level
Compare against the desired competency level
Prepare action plans (training, workshop, coaching)
Determine required resources
Set timeline
Monitor and Evaluate
In addition to the identified trainings:
Scholarship grants for graduate studies
With approved budget for the Certification Programs
Certified Internal Auditor {7}
Certified Information Systems Auditor {6}
Certified Information Security Manager {1}
Certified Fraud Examiner {1}
Certified Internal Controls Auditor {2}
Accredited Quality Assurance Validator {3}

12. To the Audit & Compliance Committee and
Senior Management

13. 3 KEY POINTS IN GOVERNMENT
IA ROLE
INTEGRITY
BUILDING EFFECTIVE RELATIONSHIPS
CONTINUOUS LEARNING

14. REPORTING ARRANGEMENT Audit & Compliance Committee
Board of Directors
Audit & Compliance Committee
President/CEO
Internal Audit Group

15. BUILDING EFFECTIVE RELATIONSHIPS
Conduct “Set Expectation Meeting” with management within the first quarter of each year
Undertake the Client Satisfaction Survey covering:
Conduct of audit engagement
Feedback on the audit team
Recognize auditees that attain “Exemplary” audit ratings by giving token cash rewards
Present to the Audit & Compliance Committee actions taken and action plans of the auditees that failed the audit

16. BUILDING EFFECTIVE RELATIONSHIPS
Initiate the preparation of:
Internal Auditors’ Rule of Conduct
Rules on Conflict of Interest for Internal Auditors
Internal Audit Group Charter and the Audit and Compliance Committee Charter
Monitor the auditee’s action plans on major lapses/findings on a quarterly basis.
Validate the Environmental Management System (EMS) Good Practices
Act as EMS Lead Auditor for the Bank’s continued ISO 14001:2004 Certification

17. 3 KEY POINTS IN GOVERNMENT
IA ROLE
INTEGRITY
BUILDING EFFECTIVE RELATIONSHIPS
CONTINUOUS LEARNING

18. CONTINUOUS LEARNING
Provide consulting services to IT System Development Projects
Ensure security and control measures are considered
Risk assessment and risk mitigation are addressed

19. This is a noble task, a higher calling that requires integrity, relationship-building, and continuous learning.

21. THANK YOU