Audit Guidelines for Cargo Handling Operators

To ensure rational and practical auditing of cargo handling services
Encourages collaboration among the Internal Control Department (ICD), Port District Offices (PDOs), and Port Management Offices (PMOs)

Establishes clear guidelines for determining the responsible office to conduct performance audits of cargo handlers

Applies to all cargo handling (CH) operators and contractors with both existing and expired contracts or permits for cargo handling services

ICD is responsible for auditing cargo handlers with contract terms of five years or more
PDO Internal Control Staff (ICS) conduct audits for handlers with contracts or permits less than five years
PDO-ICS can be assisted by PMO staff trained in internal audit seminars/workshops conducted by PPATC and ICD
PMO trained staff may form a Special Audit Task Force (SATF), headed by a PDO-ICS staff, for urgent audits
SATF audits are temporary and limited to operators with one-year permits to expedite permit renewal processing
Performance audits must be scheduled at least 6 months before expiry for 5-year+ contracts, 4 months before expiry for less than 5-year contracts, and 2 months for 1-year permits
Audits cover operations, finance, management, and investigation of specific complaints filed by port users or concerned parties
ICD and ICS retain authority to conduct regular audits beyond scheduled timelines to ensure compliance and service improvement

Section 15 of PPA Administrative Order No. 03-90 and other inconsistent provisions from previous PPA issuances are amended or modified