1. Enhancing the Effectiveness, Efficiency, Transparency, and Accountability of Operations of the Philippine Information Agency through Improvement of Internal Controls
by: Kristel Claudine B. Dauigoy-Aslanbaigi
PA – Research Methods in PA
Prof. Maria Faina Diola

2. INTRODUCTION: Statement of the Problem
How should the internal control system of the PIA be managed to produce effective, efficient, transparent, and accountable agency operations?
Does the existing internal control system of the PIA translate to effective, efficient, transparent, and accountable operations?
What internal control mechanisms will optimize the effective, efficient, transparent, and accountable operations of the PIA?
What are the policy, process, people, physical space, paraphernalia requirements should be adopted in PIA’s internal control system to enhance effectiveness, efficiency, transparency, and accountability of agency operations?
Let me start with my main research problem:
How should the internal control system of the PIA be managed to produce effective, efficient, transparent, and accountable agency operations?
My sub questions basically focus on the following themes: IN TERMS OF MANAGING ITS INTERNAL CONTROL SYSTEM
1) Where is PIA is right now? Does the existing internal control system of the PIA translate to effective, efficient, transparent, and accountable operations? If it does, how can it be further enhanced? If it does not, what adjustments or changes, given its strengths and weaknesses are necessary?
2) Where does PIA want to be? Does the existing internal control system of the PIA translate to effective, efficient, transparent, and accountable operations? If it does, how can it be further enhanced? If it does not, what adjustments or changes, given its strengths and weaknesses are necessary?
3) What are the gaps between these two? What are the policy, process, people, physical space, paraphernalia requirements should be adopted in PIA’s internal control system to enhance effectiveness, efficiency, transparency, and accountability of agency operations?

3. INTRODUCTION: Goals
Beyond this study, I intend to contribute to the following PA theories/concepts/practices:
Administrative Theory
Public Sector Reengineering
Program Effectiveness
Productivity/Performance Measurement
Total Quality Management
To contribute to Administrative Theory particularly in describing administrative situations. As you may recall in PA 208, the theory of administration is concerned with how an organization should be constructed and operated in order to accomplish its work efficiently. Administrative Theory’s first task is to develop operational definition of concepts in order for them to be empirically observable, hence, scientifically useful.
To contribute to the theory of Public Sector Reengineering specifically in providing an opportunity to make policymakers take another look at the logic and rationale of the existing rules and safeguards, opening possibilities of discarding/rewriting them.
Program Effectiveness: Maximizing allocation of limited resources for attaining maximum benefit

4. INTRODUCTION: Objectives
This study aims to improve the existing internal control system of the PIA that will enhance the effectiveness, efficiency, transparency, and accountability of agency operations.
Assess the existing internal control system of the PIA in the context of effectiveness, efficiency, transparency, and accountability of agency operations.
Identify the strengths and weaknesses of the existing internal control system of PIA and determine in what aspects it can be enhanced or improved.
Determine the policy, process, people, physical space, paraphernalia requirements that should be adopted in PIA’s internal control system to enhance effectiveness, efficiency, transparency, and accountability of agency operations

5. INTRODUCTION: Significance of the Study
The purpose of the study is to identify the key enablers that will help enhance the existing internal control system of PIA that will lead to its effective, efficient, transparent, and accountable agency operations.
It is seen as a significant undertaking for it outlines the current standards and conditions of the PIA internal control system, which provides baseline documentation for future improvement plans.

6. INTRODUCTION: Scope and Limitations
PIA Major Final Outputs
(MFOs)
Internal Control System Components
Operations
Production of Developmental Information;
Dissemination of Developmental Information;
Institutional Networking and Capability Building;
Communication Research
Control Environment
Risk Assessment
Control Activities
Monitoring
Information and Communication
General Administration and Support
- Admin, Finance, HR, MISD, Planning work systems
The study looks into the existing internal control system of PIA for the following activities:
Production of Developmental Information
Institutional Networking and Capability Building
Acquisition/Inventory Management
Planning
Specifically, the internal control aspects that were looked in to are the following:
1) Control Environment
2) Control Activities
3) Monitoring

7. INTRODUCTION: Assumption
This study will show that the improvement of the existing internal control system of PIA will translate to the effective, efficient, transparent and accountable agency operations.
INDEPENDENT VARIABLE: Internal Control System
DEPENDENT VARIABLES: Effective, Efficient, Transparent and Accountable PIA Operations
- Effectiveness
- Efficiency
- Transparency
- Accountability
- PIA Operations

8. Review of Related Literature: Theoretical Framework
Since my research accounts for the assessment of PIA’s internal control system it is necessary to contextualize this focus in a much general context of PIA’s effectiveness as a public organization.
The Systems Theory shall be used in this study in assessing the current effectiveness of PIA as an organization. “From the perspective of the systems theory, the successful organization is one that achieves both internal integration and external adaptation; it is one that maintains an optimal fit between its mission and strategies, its internal systems and structures, and the forces in the external environment that create both opportunities and threats. (Tompkins 2005:6)”
Since the study will specifically look at internal controls in the context of PIA’s overall management system, the study shall also employ Luther Gullick’s Administrative Management Theory where the POSDCORB elements are considered as the whole “management” function which is necessary for the realization of organizational goals and objectives.
As to developing the design of internal control mechanisms that will optimize the effective, efficient, transparent, and accountable operations of the PIA, this study shall employ the principles of the New Public Management (NPM) Theory that posits that the center of public management are the following:
a) citizens as customers; and
b) accountability of public organizations/servants as results.

9. Review of Related Literature: Theoretical Framework
The integration of the aforecited theories are depicted in this illustration.

10. Review of Related Literature: Operational Framework
Policy, Process, People, Physical Space, Paraphernalia Analysis
Production of Developmental Information
Institutional Networking and Capability Building
Acquisition/ Inventory Management
Planning
INTERNAL CONTROL SYSTEM
Control Environment
Control Activities
Monitoring
INPUT
PROCESS
Determination of gaps and deficiencies in internal control
Policy, Process, People, Physical Space, Paraphernalia Requirements in Improving Internal Control System
OUTPUT
Effective, Efficient, Transparent, and Accountable PIA Operations
OUTCOME

11. Review of Related Literature: Operational Definitions
INTERNAL CONTROL
US Government Accounting Office (US GAO): An integral component of an organization’s management that provides reasonable assurance that the following objectives are being achieved:
Effectiveness and efficiency of operations;
Reliability of financial reporting, and
Compliance with applicable laws and regulations.
International Organization of Supreme Audit Institutions (INTOSAI): An integral process that is effected by an entity’s management and personnel and is designed to address risks and to provide reasonable assurance that in pursuit of the entity’s mission, the following general objective are being achieved:
Executing orderly, ethical, economical, efficient, and effective operations;
Fulfilling accountability obligations;
Complying with applicable laws and regulations; and
Safeguarding resources against loss, misuse, and damage.

12. Review of Related Literature: Operational Definitions
INTERNAL CONTROL
Presidential Decree 1445 (Gov’t Auditing Code): Internal control is the plan of organization and all the coordinate methods and measures adopted within an organization or agency to safeguard its assets, check the accuracy and reliability of its accounting data, and encourage adherence to prescribed managerial policies.
Philippine Government Internal Audit Manual (PGIAM): The internal control system consists of control features built into and made an integral part of an organization’s processes to regulate and guide its operations to ensure that the following objectives are attained:
Safeguard assets;
Check the accuracy and reliability of accounting data;
Adhere to managerial policies;
Comply with laws and regulations; and
Ensure effective, efficient, ethical, and economical operations.

13. Review of Related Literature: Operational Definitions
INTERNAL CONTROL
COA Government Auditing and Accounting Manual (GAAM): Internal control comprises the plan of organization and all the methods and measures adopted within an agency to ensure that resources are used consistent with laws, regulations and policies, resources are safeguarded against loss, wastage and misuse; financial and non-financial information are reliable, accurate and timely, and operations are economical, efficient and effective.
WHAT IS PIA? PIA Primer

14. Methodology: Unit of Analysis
Variable
Unit of Analysis
Internal Control System
Control Environment
PIA’s organizational structure and methods of assigning authority and responsibility;
Managerial policies, rules and regulations and processes that underlie the proper functioning of operating units; and
HR policies
Control Activities
PIA’s reviews of operating performance (performance reviews);
PIA’s reviews of operations and processes; and
PIA’s authorization and approval procedures.
Monitoring
Baseline evaluation of Internal Control System; and
Ongoing monitoring of daily operations.

15. Methodology: Unit of Analysis
Variable
Unit of Analysis
PIA Operations
Production of Developmental Information
Institutional Networking and Capability Building
Acquisition/Inventory Management
Planning

16. Methodology: Sampling Procedure: Purposive Sampling
Research Design: Descriptive
Data Gathering Procedure: Document Inventory and Analysis and Survey of Key Informants, and Key Informant Interviews.