Internal Control Practices of Selected Income Generating Projects (IGPs) of Jose Rizal Memorial State University – Katipunan Campus
This study assessed the internal control practices of selected Income-Generating Projects (IGPs) at Jose Rizal Memorial State University–Katipunan Campus, using the Philippine Government Internal Audit Manual (PGIAM) as the benchmark. The research aimed to: profile the selected IGPs in terms of type, operational duration, capital structure, and financial performance from 2015–2017; evaluate internal control practices across the five COSO-aligned components—Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring; validate practices through third-party confirmations; and identify gaps relative to PGIAM standards. A descriptive research design was employed, targeting purposively selected respondents directly involved in project operations. Data were collected through surveys, direct observations, confirmatory inquiries, and document analysis, and analyzed using weighted means, frequencies, and percentages. Findings indicated that the Rice Production and Food Processing Projects largely complied with PGIAM, with most practices rated as “Extensively Practiced,” particularly in control activities and monitoring. Nevertheless, several risk assessment controls were “Never Practiced,” including undefined risk management responsibilities and the absence of risk identification procedures. Other notable gaps included inadequate staffing, weak monitoring mechanisms, and limited transparency, evidenced by the absence of a Citizen’s Charter, formalized procedures, and visible process flows. The study concluded that, although current practices broadly align with the PGIAM framework, significant gaps persist. Recommendations include establishing a formalized internal control system with clear, documented policies, robust risk management processes, adequate staffing, comprehensive monitoring, and enhanced transparency measures to strengthen accountability and operational effectiveness of IGPs.
