I.

INTRODUCTION

A. The Water Code of the Philippines

In the Philippines, all waters are declared to belong to the State, by virtue of
Presidential Decree (PD) 1067, also known as “The Water Code of the
Philippines” (the Water Code). The Water Code set forth the provisions to
govern the ownership, appropriation, utilization, control and administration of
waters as well as the conservation and protection of waters and watersheds and
related land resources and was signed into law in 1976 by then-President
Ferdinand E. Marcos.

In summary, the key principles in the Water Code include the following:
1. “All waters belong to the State”;
2. All waters cannot be subject to acquisitive prescription or the method of
acquiring property by continuous possession [ CITATION USL13 \l 1033 ]
3. Administrative concession may be allowed to govern the use or development
of waters;
Concession, in the context of trade and commerce, is defined as the
“grant of exclusive privileges (such as to be the only seller of a good or
service) by a government authority or by the owner of a singular
property… to a grantee” [ CITATION concession \l 1033 ]
4. The National Water Resources Council or NWRC, now the National Water
Resources Board or NWRB, is tasked to control and regulate the use,
exploitation, development, conservation and protection of water resources
5. “Preference in the use and development of waters shall consider current
usage and be responsive to the changing needs of the country” [ CITATION
PD1067 \l 1033 ]

B. History of Water Distribution in the Philippines

Water sanitation and distribution activities in the Philippines started almost a

century prior to the enactment of the Water Code in 1976.

1. Metro Manila
According to the history of the Metropolitan Waterworks and Sewerage
Systems, such activities in Metro Manila started in 1878 and underwent
transformations under the following entities:

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 1

 Figure 1: History of Water Distribution in Metro Manila

1878-1954 1955–1970 1971–1997 1997-

1878–1918: National Metropolitan present:
Carriedo Waterworks and Waterworks and Manila Water
Waterworks Sewerage Sewerage Company, Inc.
1919-1954: Authority Systems for East Zone
Metropolitan (NAWASA) (MWSS) Maynilad Water
Water District created through created through Services, Inc. for
Republic Act RA 6234 West Zone
(RA) 1383 By virtue of RA
8041 or The
Water Crisis Act

[ CITATION MWSShistory \l 1033 ]

2. Provinces

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 2

 Meanwhile, below is the history of the water sanitation and distribution activities in the provinces:

Figure 2: History of Water Distribution in the Provinces (Post WWII - 1986)

Decentralized among
1955-1971
Centralized through NAWASA was
1973
PD 198: Provincial PD 424: National Water
local authorities NAWASA dissolved Water Utilities Act of Resources Council
With technical RA 1383 Decentralized through 1973 (NWRC)
assistance from Bureau LGUs LWUA was created
of Public Works (BPW) RA 6234 First water districts
were created

1946-1955 1971 1974

 1946 – 1955: LGUs with assistance from the BPW

The water supply systems were operated by the local authorities (now known as local government
units or LGUs), assisted technically by the Bureau of Public Works (BPW), now known as Department of
Public Works and Highways (DPWH); [ CITATION WSP \l 1033 ]

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 3

  1955 – 1971: RA 1383 - Centralized through NAWASA
NAWASA was granted “jurisdiction, supervision and control over all
territory… [of] the Metropolitan Water District as well as areas… served by
existing government-owned waterworks and sewerage and drainage
systems within the boundaries of cities, municipalities, and municipal
districts in the Philippines, including those served by the Waterworks and
Wells and Drills Sections of the Bureau of Public Works” by virtue of RA
1383 enacted in June 18, 1955. [ CITATION RA1383 \l 1033 ]

However, the centralized system was not able to manage and

respond to the needs of water systems in far-flung provinces and
municipalities [ CITATION WSP \l 1033 ]

 1971: RA 6234 – Dissolved NAWASA; Decentralized back to LGUs

For Metro Manila, responsibility for water systems was passed on
to the MWSS while for provincial areas, such responsibility was given
back to the local government units or LGUs. [ CITATION RA6234 \l 1033 ]

 1973: PD 198 - Creation of the water districts

Upon turnover of the water systems’ management to the LGUs, the
problems associated with the deteriorated physical infrastructure of the
water systems surfaced. [ CITATION WSP \l 1033 ]

At about the same time, the Provincial Water Feasibility Studies

Project, a study authorized by the government of the Philippines and
conducted by Wilson-Montgomery, a joint venture of Adrian Wilson
International Associates, Inc. and James Montgomery, Consulting
Engineers, Inc., was completed in 1973. Based on the results of the
Wilson-Montgomery Study, Presidential Decree No. 198 (PD 198) or the
Provincial Water Utilities Act of 1973 was signed into law. [ CITATION
PAWD08212008 \l 1033 ]

Title II of PD 198, also called the Local Water District Law, set forth
the rules to govern the formation and respective authorities of parties
involved in the formation and operation of water districts. It enumerated
the following purposes of the water districts:

- Acquiring, installing, improving, maintaining and operating water supply

and distribution systems for domestic, industrial, municipal and

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 4

 agricultural uses for residents and lands within the boundaries of such
districts;

- Providing, maintaining and operating wastewater collection, treatment

and disposal facilities, and;

- Conducting such other functions and operations incidental to water

resources development, utilization and disposal within such districts,
as are necessary or incidental to said purpose

Title III of PD 198, also called the Local Water Utilities

Administration (LWUA) Law, charters the formation of the LWUA and
states the attachment of the LWUA to the Office of the President.
[ CITATION PD198 \l 1033 ]

 1974: PD 424 - National Water Resources Council (NWRC)

The National Water Resources Council (NWRC) was created by
virtue of PD 424 issued March 28, 1974. It stated that the NWRC was
attached to the Department of Public Works, Transportation and
Communication (DPWTC) and shall have regulatory & executory as well
as advisory & recommendatory functions as follows:

- Regulatory & executory functions:

a. Coordinate and integrate water resources development activities of
the country;
b. Determine, adjudicate, and grant water rights;
c. Formulate and promulgate criteria, methods, and standards for
feasibility studies, as well as rules and regulation for water resource
exploitation and utilization;
d. Review and approve water resources development plans and
programs of any agency
e. Undertake river basin survey & other methods to maximize the
conservation and multi-purpose use of water in the basin
f. Undertake hydrologic surveys and other methods to provide
scientific survey and appraisal of surface and ground water
potentials of the country; and
g. Conduct and/or promote special studies and researches with other
government or private agencies on all related aspects of water
resources development.

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 5

 - Advisory & recommendatory functions
a. Appraise and/or advise the National Economic and Development
Authority (NEDA) on matters pertaining to water resources
development projects and programs;
b. Recommend to NEDA the adoption of general policies and
guidelines and short/long range plans and programs for water
resources development
[ CITATION Pre74 \l 1033 ]

Figure 3: History of Water Distribution in the Provinces (1987-present)

1987

EO 124:
Rural Waterworks Dev't Corp. abolished; transferred to LWUA
NWRC replaced by NWRB; transferred to MPWH
LWUA, MWSS & NIA still under MPWH

1991

GR Nos. 95237-38: Water districts are GOCCs

2002

EO 123: NWRB transferred to Office of the President during reorganization

2004

EO 279: LWUA transferred from DPWH to Office of the President

EO 387: LWUA was transferred from OP to DPWH

2008

EO 738: LWUA transferred from DPWH to DOH

2010

EO 860: NWRB transferred to DENR

2011

EO 62: LWUA transferred from DOH to DPWH

 1987: EO 124 - Reorganized the Ministry of Public Works & Highways

(MPWH)
Rural Waterworks Development Corporation was abolished and its
functions and assets were transferred to LWUA by virtue of Sec. 28. In
addition, NWRC was abolished and all technical functions were

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 6

 transferred to the Bureau of Research and Standard and other MPWH
offices. The National Water Resources Board (NWRB) will be created by
a separate EO. The NWRB, LWUA, MWSS and the National Irrigation
Administration (NIA) were to continue to be attached to the MPWH.
[ CITATION EO124s1987 \l 1033 ]

 1991: Recognition of water districts as GOCCs

Previously, water districts were considered quasi-public
corporations or privately-owned entities under regulation by the
government [ CITATION quasipublic \l 1033 ]. Today, water districts are
classified as government-owned and –controlled corporations or GOCCs,
by virtue of a Supreme Court en banc decision G.R. nos. 95237 – 38
issued on September 13, 1991. This decision was based on the premise
that water districts were created in pursuant to PD 198, a special charter,
and not out of the Corporate Code. [ CITATION GR95237to38 \l 1033 ]

As a GOCC, the water districts are subject to audit by the

Commission on Audit and regulation by the appropriate government
agencies.

 2002: EO 123 – Reconstituting the NWRB

NWRB was transferred from the Department of Public Works and
Highways (DPWH) to the Office of the President while reorganization was
being done. Such revision was made to exclude those with direct claims
on water resource. NWRB will be transferred to the Department of
Environment and Natural Resources (DENR) upon approval of the
reorganization.

Aside from this, NWRB was tasked to review the Implementing

Rules and Regulations (IRR) of the Water Code. Moreover, NWRB will
take over the regulation of water tariffs, a responsibility previously held by
LWUA, without prejudice to LWUA’s authority to review water tariffs for the
purpose of evaluating the financial viability of water districts
[ CITATION EO123s2002 \l 1033 ]

 2004: EO 279 s. 2004

LWUA was transferred from DPWH to the Office of the President.
[ CITATION EO279s2004 \l 1033 ]

 2004: EO 387 s. 2004

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 7

 LWUA was transferred from Office of the President to DPWH;
MWSS remains with DPWH. [ CITATION EO387s2004 \l 1033 ]

 2008: EO 738 s. 2008

LWUA was transferred from DPWH to the Department of Health
(DOH). [ CITATION EO738 \l 1033 ]

 2010: EO 860 – Redefining the Composition and Powers of the

NWRB
The Executive Order set forth the following provisions:
- NWRB Secretariat was transferred to the Department of Environment
and Natural Resources (DENR);
- Primary function of NWRB is to control and regulate the utilization,
exploitation, development, conservation and protection of water
resources in accordance with the Water Code.
- NWRB was no longer authorized to regulate the water tariffs of water
districts; such function was transferred to LWUA (as per amendment to
PD 198, EO 124 s. 1987).
[ CITATION EO860 \l 1033 ]

Today, the NWRB’s functions, in response to its objectives of

ensuring water resources are allocated effectively and ensuring the
availability and access of safe and affordable water supply is increased,
include:
- Policy formulation and coordination
- Regularization on water utilization
- Regulation of water service providers
[ CITATION OPIFNWRB \l 1033 ]

 2011: EO 62 s. 2011
LWUA was transferred from DOH to DPWH. [ CITATION EO62s2011 \l
1033 ]

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 8

 C. Tanauan Water District - Creation and Purpose

Tanauan Water District (TWD) is a Category “B” water district which was
granted its Conditional Certificate of Conformance (CCC#333) by the LWUA on
March 8, 1988.

By virtue of Sangguniang Bayan Board Resolution No. 52 series of 1987

signed by the Sangguniang Bayan of Tanauan, Batangas on September 2, 1987,
the following were affirmed that:
1. TWD is to be organized to cover the entire area of Tanauan, Batangas;
2. All existing water facilities of Tanauan Waterworks System are to be
transferred to TWD upon execution of Deed of Transfer;
3. A Board of Directors (BOD) is to be created as per PD 198;
4. The appointment of BOD members and their initial terms of office (September
21, 1987 to December 31, 1988, 1990 or 1992) are specified;
5. The TWD can only be dissolved through the act of its own BOD;
6. The TWD shall have the power to raise revenues and promulgate rules and
regulations to operate the water utility, as per PD 198;
7. TWD’s operations shall be in accordance with Title II of PD 198;
8. A certified copy of the Resolution will be filed with the LWUA within 30 days of
its approval;
9. The Municipality of Tanauan shall provide a monthly subsidy of Php4,000 for
the first six (6) months of operation of TWD until it has reached self-
sufficiency according to LWUA;
[ CITATION SBRes52 \l 1033 ]

Upon the start of its operations in May 1, 1988 with only 432
concessionaires located mostly in the Poblacion area covering seven (7)
barangays, TWD’s service area has now grown to 16,083 concessionaires from
30 barangays and 13 sitios of the City of Tanauan as of January 31, 2013, just
three (3) months shy of its 25th founding anniversary. In fact, TWD has won the
Best in Marketing Effort award from the LWUA for three (3) consecutive years
from 1989 to 1991.

TWD’s vision and mission, which are recited during the weekly Flag
Ceremonies and are conspicuously displayed at the TWD Office entrance, are
stated as follows:

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 9

 Vision & Mission
Statements
The Tanauan Water District is an active
partner towards the development of Tanauan
City and the nation, as it commits to provide
an adequate supply of clean and affordable
ONE COMMUNITY IN SERVICE water through:
where everyone A dedicated board of directors that formulates
enjoys an adequate supply of clean and policies addressing the needs of the public;
affordable water A competent management that sets direction
conserves and protects its sources and the to attain corporate growth and reliable
environment operations;
and ensures that future generations will benefit A motivated workforce that delivers efficient
from our legacy services to ensure total concessionaire
satisfaction;
A sustainable program that enjoins all sectors
to protect the water sources and the
environment.

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 10

 To achieve these, TWD management has devised a roadmap or strategy map which will serve as guide for
the whole organization, as shown on the next page.

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 11

 D. Tanauan Water District - Major Stakeholders

As defined in www.businessdictionary.com, a stakeholder is “a person,

group or organization that has interest or concern in an organization… [and] can
affect or be affected by the organization’s actions, objectives and policies.”
[ CITATION Web13 \l 1033 ]

TWD has identified its major stakeholders in its mission statement, and
are shown in the following illustration:

Figure 4: TWD's Major Stakeholders

1. Concessionaires
Each meter connection is considered as one (1) concessionaire. As of
January 31, 2013, there were a total of 16,083 concessionaires being served
by TWD in the city of Tanauan. Of this number, 2,159 are inactive (or
disconnected permanently). As the recipient of the TWD’s services, they are
concerned with the reliability, cleanliness and affordability of the water supply.

2. City of Tanauan (through the Board of Directors)

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 12

 By virtue of the PD 198 provisions, the BOD shall be composed of five (5)
members who are:
 citizens of the Philippines
 of voting age
 residents within the district
Each member must represent the following sectors (1 for each sector):
 Civic-oriented service clubs
 Professional associations
 Business, commercial or financial organizations
 Educational institutions
 Women’s organizations

The function of the BOD is limited to policy-making, and not on the

“detailed management of the district”.
[ CITATION PD198 \l 1033 ]

3. Government
As a government-owned and –controlled corporation, TWD is still subject
to government rules and regulations. Examples of government agencies to
which TWD is accountable to include, but are not limited to, the following:

 Local Water Utilities Administration (LWUA)

Section 2, Title III of the Amended PD198 is about the creation of
the LWUA, a government corporation attached to the Office of the
President mandated specifically to act as a “specialized lending institution
for the promotion, development and financing of local water utilities… [it is
tasked to]:
- prescribe minimum standards and regulations in order to ensure
acceptable standards of construction materials and supplies,
maintenance, operation, personnel training, accounting and fiscal
practices for local water utilities;
- furnish technical assistance and personnel training programs for local
water utilities;
- monitor and evaluate local water standards; and
- effect systems integration, joint investment and operations, district
annexation and deannexation whenever economically warranted”
[ CITATION PD198 \l 1033 ]

As a stakeholder in TWD, it is concerned with the organization’s

development, success and financial viability.

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 13

  Bureau of Internal Revenue (BIR)
The bureau is concerned with TWD’s compliance with
applicable tax laws. As per Revenue Memorandum Circular No. 28-2010,
the local water districts were exempted from payment of income taxes.
[ CITATION BIR \l 1033 ] Still, the TWD is still a withholding agent and is
expected to remit the right amounts of taxes withheld on income payments
made to its suppliers and other payees. It is also concerned with TWD’s
compliance with other applicable rules and regulations of the bureau.

 Other Government Agencies

The following government entities are concerned with TWD’s
compliance with their respective guidelines, rules and regulations:
- Department of Environment and Natural Resources (DENR) through
the National Water Resources Board (NWRB)
- Department of Public Works and Highways (DPWH)
- Department of Labor and Employment (DOLE)
- Civil Service Commission (CSC)
- Commission on Audit (COA)
- Government Service Insurance System (GSIS)
- Philippine Health Insurance Corporation (PHIC)
- Home Development Mutual Fund (Pag-IBIG)

4. Suppliers and service providers

In order to carry out effectively its services and respond quickly to
customers’ needs, TWD needs reliable suppliers and service providers who
can provide the right product / service of the right quality at the right quantity
at the right time at the lowest cost. It is therefore important that TWD
maintains a mutually beneficial relationship with its suppliers and service
providers.

Still, it is not enough for suppliers and service providers to process orders.
As a stakeholder, it is important that suppliers know how they fit in the
strategic plans of the organization. [ CITATION ISM \l 1033 ]

5. Employees
Employees are not just workers who perform their duties in the
organization. As stakeholders, they are concerned not only with their salaries,

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 14

 but also with their job security, job satisfaction and career development. To
enable TWD to meet employees’ expectations, it has to achieve financial
viability and operational success and implement employee engagement
measures.

Moreover, employees represent the organization. A disgruntled employee

can spread negative information / publicity even by his / her small actions
and/or remarks. On the other hand, a highly-engaged employee can promote
positive branding by fulfilling a customer’s service needs and, in the process,
help shape a favourable perception of the organization among the public.
[ CITATION Mar13 \l 1033 ]

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 15

 E. Tanauan Water District - Organizational Structure
TWD now has 73 regular employees. Please refer to the following organizational charts:
1. Condensed view

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 16

 2. Complete

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 17

 General
General Manager
Manager B
B

Sr.
Sr. Internal
Internal Control
Control Sr.
Sr. MIS
MIS Analyst
Analyst
Officer
Officer A
A

Administrative
Administrative &
& Engineering
Engineering &
&
Commercial
Commercial Dept.
Dept.
Finance Dept.
Finance Dept. Operations Dept.
Operations Dept.
Manager
Manager BB
Manager B
Manager B Manager
Manager C C

Operation
Operation &
& Production
Production &&
Administrative
Administrative Finance
Finance Division
Division Customer
Customer Service
Service Construction
Construction Quality
Quality Division
Division
Division
Division Manager
Manager BB Manager
Manager BB Division
Division Manager
Manager B
B Division
Division Manager B
Manager B Manager
Manager B B

Sr.
Sr. Industrial
Industrial Water
Water // Sewerage
Sewerage
Sr.
Sr. Property/Supply
Property/Supply Admin
Admin // General
General Financial
Financial Planning
Planning Sr.
Sr. Customer
Customer Supervising
Supervising Supervising
Supervising Quality
Quality Control
Control //
Relations Mgt
Relations Mgt Maint.
Maint. Gen.
Gen.
Officer
Officer A
A Services Chief
Services Chief C
C Specialist
Specialist B
B Service Officer
Service Officer Engineer
Engineer AA Engineer
Engineer AA Assurance Officer
Assurance Officer
Officer
Officer A
A Foreman
Foreman

Sr.
Sr. Water
Water //
Sr.
Sr. Industrial
Industrial Materials
Materials Corporate
Corporate Budget
Budget Sr.
Sr. Corporate
Corporate Utilities
Utilities // Customer
Customer Utilities
Utilities // Customer
Customer Water
Water Maintenance
Maintenance Water
Water Maint.
Maint. Sewerage
Sewerage Sr.
Sr. Water
Water Resource
Resource
Supply
Supply Officer
Officer A
A Relations
Relations Dev't
Dev't Procurement
Procurement Cashier
Cashier A
A Sr.
Sr. Engineer
Engineer A
A
Specialist
Specialist B
B Planning
Planning Analyst
Analyst Svc
Svc Officer
Officer A
A Svc
Svc Officer
Officer A
A Foremen
Foremen (2)
(2) Foreman
Foreman Maintenance
Maintenance Men
Men Facilities
Facilities Tech
Tech
Officer
Officer B
B Officer
Officer A
A A
A

Sr.
Sr. Water
Water // Sr.
Sr. Water
Water // Water
Water Resources
Resources
Industrial
Industrial Relations
Relations Admin
Admin // Gen
Gen Corporate
Corporate Accounts
Accounts Utilities
Utilities // Customer
Customer Utilities
Utilities // Customer
Customer Sr.
Sr. Plant
Plant Electrician
Electrician Water
Water Maintenance
Maintenance
Storekeeper
Storekeeper C
C Mgt Collection
Collection Assistant
Assistant Sewerage Maint.
Sewerage Maint. Sewerage Maint.
Sewerage Maint. Facilities Operator
Facilities Operator
Mgt Officer
Officer A
A Services Officer
Services Officer B
B Analyst
Analyst Svc Assistant
Svc Assistant BB (9)
(9) Svc Assistant
Svc Assistant AA (4)
(4) Men
// Mechanic
Mechanic Foreman
Foreman
Men AA (4)
(4) Man
Man AA A
A

Sr.
Sr. Water
Water // Supervising
Supervising Supervising
Supervising Water
Water Resources
Resources Water
Water Resources
Resources
Industrial
Industrial Relations
Relations Admin
Admin Svcs
Svcs Sr.
Sr. Acctg
Acctg Processor
Processor Sr.
Sr. Acctg
Acctg Processor
Processor Sr.
Sr. Data
Data Encoder-
Encoder- Water
Water // Sewerage
Sewerage
Sr.
Sr. Auto
Auto Mechanic
Mechanic Sewerage
Sewerage Maint.
Maint. Instrument
Instrument Instrument
Instrument Facilities
Facilities Operator
Operator Facilities
Facilities Operator
Operator
Mgt
Mgt Officer
Officer C
C Assistant
Assistant B
B A
A A
A Controller
Controller Maint.
Maint. Men
Men B
B (3)
(3)
Men
Men BB (4)
(4) Technician
Technician Technician
Technician B
B B
B

Industrial
Industrial Relations
Relations Admin
Admin Svcs
Svcs Light
Light Equipment
Equipment Sr.
Sr. Acctg
Acctg Processor
Processor Plant
Plant Substation
Substation Instrument
Instrument Plant
Plant Electrician
Electrician Plant
Plant Electrician
Electrician Materials
Materials // Supplies
Supplies
Mgt
Mgt Assistant
Assistant AA Assistant
Assistant C
C Operator
Operator B
B Helpers
Helpers B
B (4)
(4) Technicians B
Technicians B (3)
(3) Mechanic
Mechanic A A Mechanic
Mechanic B B Inspector
Inspector

Housekeeping
Housekeeping Svcs
Svcs Water
Water // Sewerage
Sewerage Plant
Plant Electrician
Electrician
Utility
Utility Foreman
Foreman Sr.
Sr. Instrument Tech
Instrument Tech Welder
Welder A
A Plumber
Plumber B
B
Assistant
Assistant Maint.
Maint. Men
Men B
B (4)
(4) Mechanic
Mechanic C C

Instrument
Instrument Instrument
Instrument
Utility
Utility Worker
Worker B
B Welder
Welder B
B
Technician
Technician Technician B
Technician B (2)
(2)

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 18

 3. Administrative Department
Administrative &
Finance Dept.
Manager B

Administrative
Finance Division
Division
Manager B
Manager B

Sr. Sr. Industrial Admin / General Financial

Property/Supply Relations Mgt Services Chief Planning
Officer A Officer A C Specialist B

Sr. Industrial Materials Corporate Sr. Corporate

Supply Officer A Relations Dev't Procurement Cashier A Budget Planning
Officer B Officer A Specialist B Analyst

Industrial Admin / Gen Corporate

Collection
Storekeeper C Relations Mgt Services Officer Accounts
Assistant
Officer A B Analyst

Industrial
Admin Svcs Sr. Auto Sr. Acctg Sr. Acctg
Relations Mgt Assistant B
Officer C Mechanic Processor A Processor A

Industrial
Admin Svcs Light Equipment Sr. Acctg
Relations Mgt Assistant C Operator
Assistant A Processor B

Housekeeping
Utility Foreman
Svcs Assistant

Utility Worker B

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 19

 4. Commercial Department

Commercial
Dept. Manager
B

Customer
Service Division
Manager B

Sr. Customer
Service Officer

Utilities / Utilities /
Customer Svc Customer Svc
Officer A Officer A

Utilities / Utilities /
Customer Svc Customer Svc
Assistant B (9) Assistant A (4)

Sr. Data
Encoder-
Controller

5. Engineering & Operations Department

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 20

 Engineering
Engineering &&
Operations Dept.
Operations Dept.
Manager
Manager C C

Operation & Production

Production &&
Construction
Construction
Division Manager Quality Division
Manager
Manager B B
B

Water
Water // Sewerage
Sewerage
Supervising Supervising Quality Control /
Maint. Gen.
Engineer A Engineer A Assurance Officer
Foreman
Foreman

Sr. Water /
Water Sr. Water
Water Maint. Sewerage
Maintenance Sr. Engineer A Resource
Foreman
Foreman Maintenance
Maintenance Men
Men
Foremen (2) Facilities Tech
A
A

Sr. Water / Sr. Water / Sr. Plant Water Water Resources

Sewerage Maint. Sewerage Maint. Electrician / Maintenance Facilities Operator
Men A (4) Man A Mechanic Foreman A

Sr. Water //
Sr. Water Supervising
Supervising Supervising
Supervising Water
Water Resources
Resources Water Resources
Water Resources
Water / Sewerage
Sewerage Maint.
Sewerage Maint. Instrument
Instrument Instrument
Instrument Facilities Operator
Facilities Operator Facilities Operator
Facilities Operator
Maint. Men B (3)
Men
Men BB (4)
(4) Technician
Technician Technician
Technician B
B B
B

Plant Substation Instrument Plant Electrician Plant Electrician Materials /

Helpers
Helpers B
B (4)
(4) Technicians B
Technicians B (3)
(3) Mechanic
Mechanic A A Mechanic
Mechanic B B Supplies Inspector
Supplies Inspector

Water
Water // Sewerage
Sewerage Sr.
Sr. Instrument
Instrument Plant Electrician
Plant Electrician
Welder A Plumber B
Maint. Men B
Maint. Men B (4)
(4) Tech
Tech Mechanic
Mechanic C C

Instrument
Instrument Instrument
Instrument
Welder B
Technician
Technician Technician B
Technician B (2)
(2)

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 21

 6. Office of the General Manager

General
Manager B

Sr. Internal
Sr. MIS
Control
Analyst
Officer A

Based on this structure, it is clear where the Internal Control Officer

reports to and from whom authority comes. Please see Part III for the Internal
Controls Charter for more details on the roles and responsibility as well as the
authority of the Internal Control Officer.

F. References

Bureau of Internal Revenue. (2010, March 22). Revenue Memorandum Circular No. 28-2010.
Retrieved February 22, 2013, from Bureau of Internal Revenue:
ftp://ftp.bir.gov.ph/webadmin1/pdf/13_ra_10026_under_rmc28_2010.pdf

Executive Order. (2002, September 12). Executive Order No. 123 s. 2002. Retrieved March 05, 2013,
from Official Gazette: http://www.gov.ph/2002/09/12/executive-order-no-123-s-2002/

Executive Order. (1987, January 30). Executive Order No. 124 s. 1987. Retrieved March 05, 2013,
from Chan Robles Virtual Law Library:
http://www.chanrobles.com/executiveorders/1987/executiveorderno124-1987.html#.UTWDH_JYXTo

Executive Order. (2004, February 02). Executive Order No. 279 s. 2004. Retrieved March 05, 2013,
from The Lawphil Project - Arellano Law Foundation:
http://www.lawphil.net/executive/execord/eo2004/eo_279_2004.html

Executive Order. (2004, November 18). Executive Order No. 387 s. 2004. Retrieved March 05, 2013,
from Official Gazette: http://www.gov.ph/2004/11/18/executive-order-no-387-s-2004/

Executive Order. (2011, October 26). Executive Order No. 62 s. 2011. Retrieved March 04, 2013,
from Official Gazette: http://www.gov.ph/downloads/2011/10oct/20111026-EO-0062-BSA.pdf

Executive Order. (2008, July 14). Executive Order No. 738. Retrieved March 05, 2013, from Official
Gazette: http://www.gov.ph/downloads/2008/07jul/20080714-EO-0738-GMA.pdf

Executive Order. (2010, February 08). Executive Order No. 860 s. 2010. Retrieved March 05, 2013,
from National Economic Development Agency: http://www.neda.gov.ph/ntoday/images_/EO%20No.
%20860-2010.pdf

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 22

 Jane, M. (2013). Importance of Employees. Retrieved February 23, 2013, from eHow money:
http://www.ehow.com/info_7871649_importance-employees.html

Local Water Utilities Administration. (2010). PD 198 (Revised 2010). Retrieved February 21, 2013,
from Local Water Utilities Administration: http://www.lwua.gov.ph/downloads_10/PD
%20198%20%28Revised%202010%29.pdf

Metropolitan Waterworks and Sewerage System. (2013). Our History. Retrieved March 04, 2013,
from Metropolitan Waterworks and Sewerage System: http://www.mwss.gov.ph/about/our-history/

National Water Resources Board. (2012, June 13). Organizational Performance Indicators
Framework (OPIF) - National Water Resources Board. Retrieved March 05, 2013, from Department
of Budget Management: www.dbm.gov.ph/wp-content/OPCCB/OPIF2012/DENR/nwrb.pdf

Philippine Association of Water Districts. (2008, August 21). PAWD Position Paper on the Proposed
Amendment to P.D. 198. Retrieved March 05, 2013, from Cagayan de Oro City Water District:
http://www.cowd.gov.ph/news_detail.php?news_no=31

Presidential Decree. (1976). Presidential Decree 1067 (The Water Code of the Philippines). Retrieved
March 04, 2013, from Department of Environment and Natural Resources - Environmental
Management Board: http://www.emb.gov.ph/portal/Portals/0/Cache/PD%201067.pdf

Presidential Decree. (1974, March 28). Presidential Decree No. 424. Retrieved March 05, 2013, from
The Lawphil Project - Arellano Law Foundation:
http://www.lawphil.net/statutes/presdecs/pd1974/pd_424_1974.html

Republic Act. (1955, June 18). Republic Act No. 1383. Retrieved March 04, 2013, from The Lawphil
Project - Arellano Law Foundation: http://www.lawphil.net/statutes/repacts/ra1955/ra_1383_1955.html

Republic Act. (1971, June 19). Republic Act No. 6234. Retrieved March 04, 2013, from The Lawphil
Project - Arellano Law Foundation: http://www.lawphil.net/statutes/repacts/ra1971/ra_6234_1971.html

Sangguniang Bayan of Tanauan, Batangas. (1987, September 21). Resolution No. 52 - Affirming the
Organization of the Tanauan Water District. Tanauan, Batangas, Philippines.

Scheuing, E., & O'Reilly, P. (2007, May). Making Suppliers Greater Strategic Stakeholders within
Purchasing Organizations. Retrieved February 22, 2013, from Institute for Supply Management:
https://www.ism.ws/files/Pubs/Proceedings/BAScheuingOReilly.pdf

Supreme Court. (1991, September 13). En Banc Decision (G.R. Nos. 95237-38). Retrieved March 05,
2013, from Supreme Court E-Library:
http://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/40176

USLegal, Inc. (2013). Acquisitive Prescription Law & Legal Definition. Retrieved March 04, 2013, from
USLegal.com: http://definitions.uslegal.com/a/acquisitive-prescription/

WebFinance, Inc. (2013). concession. Retrieved March 04, 2013, from BusinessDictionary.com:
http://www.businessdictionary.com/definition/concession.html

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 23

 WebFinance, Inc. (2013). Quasi-public Corporation. Retrieved March 05, 2013, from
BusinessDictionary.com: http://www.businessdictionary.com/definition/quasi-public-corporation.html

WebFinance, Inc. (2013). Stakeholder. Retrieved February 21, 2013, from Business Dictionary:
http://www.businessdictionary.com/definition/stakeholder.html

World Bank Water and Sanitation Program - East Asia and the Pacific. (2003, June). Management
Models for Small Towns Water Supply - Lessons learned from case studies in the Philippines.
Retrieved March 04, 2013, from Water and Sanitation Program:
http://www.wsp.org/sites/wsp.org/files/publications/329200711101_East_asia_small_town_water_sup
ply.pdf

TWD-OGM-ICS Internal Controls Manual (Part 1) Page | 24