In accordance with the Law on budgets, customs organization began implementing internal audit activities and in an attempt to ensure transparency, we are presenting you the first of series of evaluation reports resulting from the audit.
1. Results of the internal audit conducted on the asset records, utility and maintenance thereto at the Orkhon customs
The audit was conducted for the year 2012 and the first quarter of 2013. Orkhon customs fully completed the planned activities to ensure enforcement of customs laws and legislations and to ensure transparency of customs operations as well as to enhance the capacity of its human resource. Several errors and mistakes were detected in the investment, expenditure and internal affairs, which were reviewed in the Administrative board of the Customs General Administration that in turn decreed the customhouse to formulate plans to address the issues and amend the errors.
2. Results of the internal audit conducted on the operations of the printing unit of the customs organization
The printing unit under the Customs General Administration is responsible for printing the customs declaration forms, record books and other forms and documents used for customs purposes. During the audit, it was found that the printing unit lacked proper control and monitoring on the use of equipment and printing materials and it failed to take inventory on specified dates. Moreover discrepancies were found in terms of failure to take regular record of activities. The Administrative board of the Customs General Administration decreed the relevant official of the printing unit to formulate plans to amend such errors.
3. Results of the internal audit conducted on the procurement of parts to vehicles used at the Customs General Administration and the usage thereof
The discrepancies found from the audit included high maintenance cost due to the vehicles used in the Customs General Administration being old and requiring repairs occasionally, the number of vehicles being insufficient for all official activities, and the failure to update the regulations in force to adapt to the other relevant decisions of the Government. Recommendations included the improvement of office vehicle service, updated norms on fuel expenditure, and transparent notice of vehicle reservations to the entire officers in the customs administration. Administrative board of the Customs General Administration decreed the relevant officials to follow through with the recommendations.
4. Results of the internal audit conducted on the operations related to the commodities confiscated for state revenue
Discrepancies found during audit included misalignment of activities regarding storing, transferring and destroying of the confiscated goods with the relevant laws and regulations, chaotic procedures and the failure of the storage facilities and equipment to meet the standards required for certain specific goods. Administrative board of the Customs General Administration decreed the relevant officials to follow through with the recommendations provided as a result of the audit.
5. Results of the internal audit conducted on the operations of the Detective dog unit
The audit concluded, although the unit operates in accordance with the "Guidelines on using detective dogs for customs control purposes", the implementation of the guidelines is not satisfactory and that the unit lacks specialized customs officers. Additionally, there discrepancies with regards to records, research, and reports were not properly completed. Upon reviewing the results from the audit, the Administrative board decided to reform the operations of the unit, updating the guidelines and organizing various levels of training and to enhance the operation of the unit. The activity plan to improve the operation of the unit was developed and approved by the decree of the Director General of Customs General Administration and the implementations thereto is in progress.
6. Results of the internal audit conducted on the Customs Training Center
The audit found the activities organized by the Customs Training Center in 2012 was more leaning towards preparing and re-training customs brokers rather than the customs officers and that the training center failed to fulfil the obligation to enhance the capacity of customs officers and to improve their skills and expertise. Recommendations were provided to amend this error.
7. Results of the internal audit conducted on the utility and maintenance of the parking areas of the Customs General Administration
Some of the discrepancies found during the audit included the failure to adhere to the standards MNS 5342:2007 with regards to parking areas and the failure to enforce the parking schedule in the indoor parking and the lack of schedule for the outdoor parking. The Customs General Administration decree was passed along with the complete plan to improve the operations of the Maintenance and Service Unit.
8. Results of the internal audit conducted on the customs vacation resort "Gorkhi-melkhii Khad"
The vacation resort was founded in 2002 for the purpose of creating a place for employees of the Finance Ministry, Customs and Tax officers to spend their holidays at a comfortable environment with the investment from the state into a building that was half completed. The internal audit report included recommendations to update the terms of reference of the vacation resort, to pay off the tax debts and to develop the resort as a complex for both vacation and treatment care.
9. Results of the internal audit conducted on the allocation and use of computers and other technical appliances used in the daily work at the Customs General Administration
The audit concluded while the allocation of computers and printers for official use has been sufficient, some of the models are outdated and the capacity does not satisfy the requirements and need to be updated. Furthermore it was concluded that the three relevant units in the General Administration were more focused on the ordering, procuring and supplying of the computers and appliances and they failed to also focus on the protection, maintenance and use of the equipment. Recommendations were given to amend the errors.
10. Results of the internal audit conducted on the operation of the cafeteria
Under the audit, satisfaction surveys were taken from the employees. Some discrepancies were found in the lease agreement which include the failure to specify the utility cost of electricity and water. Additionally as of the first quarter of 2013, the lease have not been paid. The number of customers were few, the taste of the food was not satisfactory and the price was too high. Recommendations were provided to amend this error.