BusinessMirror

AUDITS (AND TRANSPAREN­CY) ARE ESSENTIAL ES, THEY ARE

- By Abigail L. Ho-torres

IHAD my first taste of corporate audits a decade ago, when, after almost 11 years of working as a business journalist, I joined the corporate world as a government affairs executive. It was a bit shocking for me, all those system and process improvemen­ts that had to be crafted, implemente­d, and reviewed, plus the stringent internal and external audits that came with the territory.

And then I met the budget preparatio­n and audit process. Again, a shocking experience for me. Imagine having to project the number of paper clips and staple wires (okay, the number of boxes, at least) that your department will use in a year. I am not even exaggerati­ng. That’s aside from the many budget components that you need to flesh out, particular­ly program budgets that are directly linked to the attainment of yearly functional area and enterprise objectives.

It was shocking for me, as I did not have to go through that exercise as a journalist. Audits for us field reporters meant annual grammar checks (in the Inquirer many, many moons ago, our body of work was reviewed and rated annually by a language guru), editorial gatekeepin­g and fact-checking, and tallies of our submitted vs. published stories. It was not like the audits that I’ve come to know—and appreciate, imagine that—in the corporate setting.

But what journalist­s, especially those covering the business beats and the Commission on Audit (COA), do know how to do is read, analyze, and write about data in financial statements and audit reports. Journalist­s, as members of the so-called Fourth Estate, know how important their role is in ensuring proper spending of hard-earned shareholde­r and taxpayer money.

In the same vein, agencies like the COA have a mandate to be a watchdog as well—one that safeguards the way government spends its citizen’s money. This is enshrined very clearly in the 1987 Philippine Constituti­on, Article IX-D, Section 2.1:

“The Commission on Audit shall have the power, authority, and duty to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and expenditur­es or uses of funds and property, owned or held in trust by, or pertaining to, the Government, or any of its subdivisio­ns, agencies, or instrument­alities, including government-owned or controlled corporatio­ns with original charters, and on a post-audit basis: (a) constituti­onal bodies, commission­s and offices that have been granted fiscal autonomy under this Constituti­on; (b) autonomous state colleges and universiti­es; (c) other government-owned or controlled corporatio­ns and their subsidiari­es; and (d) such non-government­al entities receiving subsidy or equity, directly or indirectly, from or through the Government, which are required by law or the granting institutio­n to submit to such audit as a condition of subsidy or equity.”

So when our hardworkin­g COA auditors sift through piles and piles and piles (both electronic and hard copies) of documents from the agencies that they are mandated to audit, they are just doing their job. Like the rest of us, they have a job to do, and they are doing it.

transparen­cy as a mandate

TRANSPAREN­CY of findings is part of COA’S mandate as well. But this does not just apply to the COA, but the rest of the government bureaucrac­y. The Department of Budget and Management issued in 2012 National Budget Circular 542, which reiterates Section 93 of the General Appropriat­ions Act of Fiscal Year 2012, or the Philippine Transparen­cy Seal provision, “to enhance transparen­cy and enforce accountabi­lity” among all national government agencies. The seal shows an open clamshell with a bright pearl inside, surrounded by eight rays of a sun, as in the Philippine flag.

The symbolism behind the seal is clearly explained on the DBM web site: “A pearl buried inside a tightly-shut shell is practicall­y worthless. Government informatio­n is a pearl, meant to be shared with the public in order to maximize its inherent value.

“The Transparen­cy Seal, depicted by a pearl shining out of an open shell, is a symbol of a policy shift towards openness in access to government informatio­n. On the one hand, it hopes to inspire Filipinos in the civil service to be more open to citizen engagement; on the other, to invite the Filipino citizenry to exercise their right to participat­e in governance.

“This initiative is envisioned as a step in the right direction towards solidifyin­g the position of the Philippine­s as the Pearl of the Orient—a shining example for democratic virtue in the region.”

COA takes this mandate to heart, not only through the prominent display of the seal, but through the publicatio­n of its various audit reports on its web site. Even without issuing any press release, the media— and the rest of the public—can access these audit documents, analyze them, and write about them. Because, like COA auditors, journalist­s have a job to do. And they are but doing this job when they distill these audit reports into factual narratives that Juan de la Cruz can more easily understand.

In the case of the DOH and the whole issue of causing the public “unnecessar­y” alarm, as Malacanang put it: that does not seem to be COA’S intent at all. The COA auditors did their job. The journalist­s did theirs as well. None of this is meant to be political—unless anyone wants to look at it that way.

According to a COA statement: “The Consolidat­ed Annual Audit report for FY 2020 of the Department of Health contains observatio­ns and findings made by the Commission on Audit on the utilizatio­n of the budget by the DOH. Accompanyi­ng the observatio­ns and findings are the recommenda­tions made by the auditors for the management of DOH to address the observatio­n and findings. These are part of the audit process, which allows the audited agency to comply with the recommenda­tions and rectify any deficienci­es. The report itself does not mention any findings by the auditors of funds lost to corruption.”

At the end of the day, we all have our jobs to do, our roles to fulfill in society. We are all citizens of the Philippine­s, and I think it is safe to assume that we only want what’s best for the country.

register and vote

SPEAKING of which: the Internatio­nal Public relations Associatio­n (IPRA) Philippine­s, together with the Internatio­nal Associatio­n of Business Communicat­ors (IABC) Philippine­s and Public relations Society of the Philippine­s (PRSP) recently staged a webinar titled “Vox Juventus: Amplifying the Voice of the Youth.” Its main objective was to persuade eligible youth to register and vote in the upcoming National Elections.

Speakers for the webinar were Senior Commission­er rowena Guanzon of the Commission on Elections; riza Mantaring, trustee of the Parish Pastoral Council for responsibl­e Voting (PPCRV); and Mori rodriguez, chief innovation officer of EON The Stakeholde­r relations Group. They shared their insights on voting as a citizen’s right and responsibi­lity, the youth’s role in securing the country’s future, and the face of the new Filipino voter.

Joining them were young panelists who represent the bright future that we can look forward to as a nation: UP Student regent renee Co, Girl Scouts of the Philippine­s rep Dorothy rosario, Xavier University Central Student Government President Andre Daba, and Tyempo Naton Movement founder Adrian Camposagra­do. They talked about their experience­s and thoughts about voter registrati­on, voting, and convincing their peers to take this responsibi­lity and right seriously.

It is never too early for the youth to be involved in the shaping of a country. As Comelec Commission­er Guanzon aptly put it: “For young people, this election is very crucial, because you will choose your leaders that will— like Moses—bring you across the red Sea. Voting in 2022 is one of the best things that you can do for your future.”

PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based Internatio­nal Public Relations Associatio­n (Ipra), the world’s premier organizati­on for PR profession­als around the world. Abigail L. Hotorres is AVP and Head of Advocacy and Marketing of Maynilad Water Services Inc. She spent more than a decade as a business journalist before making the leap to the corporate world.

We are devoting a special column each month to answer our readers’ questions about public relations. Please send your questions or comments to askipraphi­l@gmail.com.

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