This work was carried out in the Financial Economic Directorate of the AA Branch, which proposes an organization manual and Internal Control procedures for said organization that allows evaluating the degree of economy, efficiency and effectiveness in the use and control of the resources put into disposition of the entity. For better development, the work is divided into two chapters.
In the first, a theoretical foundation is made that addresses different topics related to management control, internal control, and organization and procedure manuals, among other aspects.
In the second chapter the characterization of the company is enunciated and the organization manual and internal control procedures are proposed. At the end, the conclusions reached are presented and a series of recommendations are presented to the entity to contribute to the solution of the problems detected. Bibliographic references are also listed. This material will allow the company to have an important tool in terms of resource control, where the activities to be controlled in the different components are established, key aspects that will help the organization in the control of tasks. in the different areas of the entity.
Introduction
The evolution of the competitive environment highlights the growing need for companies to adapt their information and control systems, in order to respond to new management challenges from both an operational and strategic perspective. The creation of new increasingly flexible and decentralized management structures, the call for greater efficiency and new forms of organization, reinforce control as a management activity. The mastery by managers of all the functions and processes of the entities has become a vital necessity that requires knowledge and mastery of the most sophisticated techniques and control tools.
On the other hand, it is necessary to point out that currently a group of events that deteriorate the internal control systems of organizations in Cuba have been revealed, such as: the intensification of the blockade, the loss in some subjects of values, the lack of of professional ethics, relaxation of conduct, disloyalty in the performance of functions and the lack of adequate controls, among others. Confronting these indisciplines and the manifestations of corruption is one of the objectives of our highest Party leadership, due to the economic connotations that it brings.
It is necessary to point out the incalculable losses that occur in the different entities, with the theft of their assets and other illegalities, which also causes vices incompatible with the Cuban social system such as: administrative corruption, fraud, bribery and various forms Covert irregularities that also affect us.
Our country, which is immersed in the development of the economy, has made multiple efforts in order to restore discipline and control of economic resources. To achieve this, it has worked on the improvement of the methods for the treatment of these crimes through the guidelines of the Attorney General of the Republic, which have achieved satisfactory results, with the creation of the Ministry of Audit and Control, according to Decree Law 219 / 2001, and very specific Resolutions on the Internal Control System such as 13 and 297 of 2003.
The latter enforces the definitions of Internal Control, the content of its Components and its Standards, which are in full correspondence with the postulates of management control and it is proposed that the indicators required by each level of management for the analysis and assessment of your area, as well as the information system.
The current and future conditions of the Cuban economy demand from companies an urgent need to obtain ever-increasing productions and services with relevant efficiency. For this they need a correct organization of their operations, as a way to fulfill their goals, which can be achieved with the insertion of an Organization Manual and Internal Control Procedure.
For all of the above, the problem of this investigation is the following:
The Financial Economic Directorate of SUCURSAL AA does not have an Internal Control Organization and Procedures Manual that contributes to the effectiveness of Management Control.
Branch AA presents a highly risky area due to the high concentration of resources it has. This means that it is not exempt from the fight against different illegal activities, which affect the formative essence of values in the new generations of professionals today. That is why the top management, the Financial Economic Directorate and with the support of the full workforce, launched with force and rigor a growing fight against indiscipline and illegalities.
The elements that have been explained previously support this work. That is why the result of the same is the proposal of a Manual of Organization and Procedures of Internal Control, which constitutes a tool in safeguarding human, financial and material resources.
The following hypothesis is proposed from what was previously stated:
The effectiveness of Management Control in the Financial Economic Directorate of BRANCH AA will be contributed with the proposal of the Manual of Organization and Procedures of Internal Control.
The research object of this work as well as its general objective are listed below.
Research Object: Management Control.
General objective:
Design a Manual of Organization and Procedures of Internal Control for the Financial Economic Directorate of BRANCH AA that contributes to the efficiency and effectiveness of operations; control of resources, of all kinds, available to the entity; the reliability of the information and compliance with the laws, regulations and established policies.
This general objective is based on the following Field of action:
Internal Control in the Financial Economic Directorate at Branch AA; for which the following Scientific Tasks were developed:
- Evaluate the fundamental theoretical considerations regarding the current trends in Management Control and Internal Control. Design the Manual of Organization and Procedures of Internal Control for the Financial Economic Directorate of SUCUCURSAL AA.
For the development of these tasks will be used as Research Methods:
- At the theoretical level: Historical - Logical; Hypothetical - Deductive; Analysis and synthesis of information; Systemic - Structural. On the empirical level: Observation, Interview, Document Analysis, Group Dynamics (Workshop).
Chapter I: Fundamental theoretical considerations on Management Control and the Internal Control System.
Management control
Management Control Definitions
Management Control emerged at the end of the 19th century under the conditions of industrial development, and since then it has been approached by various authors in a more or less simple way:
- According to Henry Fayol: "It consists of verifying if everything happens according to the program adopted by the orders given and defined principles." According to Blanco Illescas: "It constitutes a process by which a Company ensures that the execution agrees with the planning or in everything case, discover possible deviations to take appropriate corrective measures. This approach responds to a rule that is not necessarily optimal and that we could formulate like this: the closer the better. ”
Very few authors see Management Control as a way to promote coordination between the different managers and integrate them strongly into the organization, the most widespread practice being the evaluation of the organization's global objectives and strategies.
Management Control in Cuban companies.
Studies carried out between 1997 and 2001 by Machado Noa show that under the conditions of the Cuban economy, the management control that is carried out is highly based on the classic conception of Management Control, that is, the most important thing is the achievement of benefits, being the analysis of financial information the main instrument used, specifically the budget; This situation, caused by the way in which the internal market in the country operated, which was not exposed to demanding international comparisons and the Management Control process was part of the material planning system where the companies' plans responded to the guidelines. drawn up by the Central Planning Board, a reflection of the system of leadership and planning of the socialist countries of Europe.
In September 2003, Resolution 297 of the Ministry of Finance and Price was approved, expressing the need to introduce changes in the concept of internal control:
Traditional Management Control tools.
The tools of Management Control are all those that aim to provide key information for the management of the organization, so that it allows the organization to compare itself with the plans outlined previously in the strategic planning.
Among them we can mention the following: a) Budgetary Control, b) Cost Accounting, c) Management Accounting, d) Balanced Scorecard, f) Internal Audit, h) Financial Analysis, e) Internal Control
Management Audit as part of Management Control.
Management Concept
Management is a process of coordinating available resources that is carried out to establish and achieve precise objectives and goals. Management includes all the organizational activities that involve: The establishment of goals and objectives, The analysis of available resources, The economic appropriation of them. The evaluation of its compliance and institutional performance. An adequate operation that guarantees the functioning of the organization.
Management is the activity of an organization where the objectives and goals are set, and also the performance and the operational strategy that guarantees its survival are evaluated.
The Internal Control System as a tool of Management Control
Definition of Internal Control
After consulting different authors on the definition of internal control, a certain lack of uniformity is notable, although in most cases the definition of internal control issued by the bodies with recognized authority in the matter, among which is finds, the International Association of Public Accountants and Auditors (hereinafter, AICPA). The definition of internal control offered by the AICPA has gone through various reviews, evolving and gaining depth in each one, until reaching the current definition.
Below we will see different definitions of internal control before arriving at the one that prevails today:
Fowler Newton defines internal control as "… the set of elements, rules and procedures intended to achieve through effective planning, execution and control the efficient exercise of management to achieve the ends of the organization"
In Cuba, the Ministry of Finance and Prices defines it as: the set of measures aimed at: Protecting resources against waste, fraud, and improper and inefficient use. Promote the accuracy and reliability of accounting records. Encourage and measure compliance and the provisions of state agencies that concern the policy, norms and instructions of their branch organizations, united, and the entity itself. Evaluate the efficiency of operations. Contribute that the information provided to the administration is correct and you will see.
Components of Internal Control.
Next we will refer to the five functional components of Internal Control: 1-. Control Environment, 2-. Risk Management.3-. Control Activities. 4-. Information and communication. 5-. Supervision and monitoring.
Definition of Internal Control according to the COSO Model
Internal control underwent a rigorous study by the Treedway Commission (COSO) Commission of Sponsoring Organizations. The so-called "COSO Report" on internal control, published in the USA in 1992, arose as a response to the concerns raised by the diversity of concepts, definitions and interpretations existing around the referred subject.
After the study carried out by the COSO commission, and at its proposal, the focus of the definition of internal control changed its traditional focus, achieving wide acceptance not only in the United States, but also in other countries.
This study of internal control defined it as: A process carried out by the board of directors, the management and the other members of an entity in order to provide a reasonable degree of confidence in achieving the objectives in the following areas o categories: Effectiveness and efficiency of operations. Reliability of financial information. Compliance with applicable laws and regulations
Regardless of the one used at the International Level for any analysis on Internal Control, the COSO Report (in addition, the investigation will be entirely based on this model), we want to refer to other Internal Control models to expand this work.
Definition of Internal Control according to the COCO Model
The Canadian Institute of Certified Accountants (CICA), through a council in charge of designing and issuing general criteria or guidelines on Internal Control, released the COCO Model (Control Criteria Commission for its acronym in English), hereinafter COCO). Canada's COCO framework, published three years later than COSO, simplifies concepts and language, to enable discussion of the full scope of control; It also arises as a product of an in-depth review of the Committee of Control Criteria of Canada on the COSO Report and whose purpose was to make the approach of a Model easier and more understandable.
The model foresees twenty criteria grouped into four groups, regarding Purpose, Commitment, Aptitude, and Evaluation and learning. The criteria defined for each group are as follows: Purpose. Commitment. Aptitude. Assessment and learning.
Definition of Internal Control according to the SAC Model
The Audit and Control System (hereinafter SAC), created in 1991 and revised in 1994, provides assistance to internal auditors on the control and audit of computer systems and technology.
The SAC report defines the internal control system, describes its components, provides various classifications of controls, describes control objectives and risks, and defines the role of the internal auditor. The report provides guidance on the use, management, and protection of technology resources.
- Definition: The SAC report defines an internal control system as: a set of processes, functions, activities, subsystems, and people that are grouped or consciously segregated to ensure the effective achievement of the objectives and goals. Components: The control system The internal system consists of three components: the control environment, the manual and automated systems, and the control procedures. Classifications: SAC provides five classification schemes for the internal controls in the computer systems: (1) preventive, detective, and corrective, (2) discretionary and non-discretionary, (3) voluntary and mandatory, (4) manual and automated, and (5) application and general controls. Control and Risk Objectives: Risks include fraud, errors, business interruption,and the inefficient and ineffective use of resources. Internal Auditor's Role: The responsibilities of the internal auditors include ensuring the adequacy of the internal control system, the reliability of the data and the efficient use of the organization's resources. Link of the COSO and COCO models with Resolution 297/03 of the Ministry of Finance and Prices and 13 of the Ministry of Audit and Control.
Resolution 297/03 regulates the way in which the general concepts of internal control will be applied from the detailed and meticulous study of the concepts, rules and principles established in the COSO report, applied to the specific conditions of our country.
In this regard, Resolution 13/2003 of the Ministry of Audit and Control states "… It is important for everyone to understand that the first battle and the constant battle is against disorder, indiscipline and illegalities, which are ultimately the conditions and circumstances that foster and create possibilities for manifestations of corruption to emerge and prosper. ”
Resolution 297 defines internal control as… "the process integrated into the operations carried out by the management and the rest of the staff of an entity".
This document establishes the principles, objectives, components and standards that must be present in the internal control system adopted by each organization, in correspondence with its mission and social mandate.
Key features for organization manuals and procedures
It is necessary to take into account the importance of the implementation of Resolution 297, which in the Control Environment component legislates that every organization must have different types of manuals, in order to establish the context, atmosphere, climate and environment. internal control in each entity.
Organization Manual.
The organization manual is a document that reflects detailed information on the historical background, attributions, the legal framework of the organizational unit, the structure, objectives, functions, and the lines of communication and coordination that must be given in a unit. organizational, dependency or administrative unit. The creation of organization manuals groups five fundamental objectives: Outline the positions, relationships and functions to present an overview of the organization through organization charts. Specify the functions entrusted to each organic unit to define responsibilities, avoid duplication and detect omissions. Support the correct execution of the tasks entrusted to the staff and promote uniformity in the work.Serve as guidance to new staff to facilitate their incorporation into the different organic units. Provide the best use of human and material resources to help reduce the organization's operating costs.
Therefore an Organization Manual becomes a useful guide for administration, mainly because it is the final and tangible product of organizational planning; therefore, the importance of this type of manual lies in the fact that it contributes to carrying out the main task of a manager: organizing, delegating, supervising and motivating staff.
The Structure of an organization manual is conventional and the most common aspects are: Cover of the manual, Signature identification sheets, Index, Introduction or presentation, Historical background, Legal framework of the organizational unit, Organizational structure, General organization chart and Functional structure.
These manuals should be prepared starting a work design or activity program, ordered to serve as a guide, contemplating the following activities: design of instruments to collect information, collection of information, this should implicitly carry out documentary research and field research, analysis information, duration of manual development, technical review and validation, first validation, modifications and final validation, manual registration and printing and distribution.
Procedures manual.
It is the set of documents that describe in detail each step of a certain activity, process, operation or function that is carried out in the organizational unit, these can be associated with different variants that cover all the procedures of the organizational unit, even those that describe a specific area, process, or procedure.
The organization can develop and use the manuals for the following purposes: Specify the activities assigned to each of the organizational units involved in a procedure. Serve as a means of orientation and integration for new staff. Provide basic information for the development of administrative modernization actions.
The Structure of this manual must accurately, concretely and concisely reflect the policy for the development of each process or activity, the objectives and the current procedures of the Economic Financial Directorate.
The procedure manual can: Be a direct compilation of the documented procedures of the quality management system; Be a series of documented procedures for specific facilities or uses; Have a common structure with tight appendages; Exist on its own or in combination with other documents; Present other possible and numerous referrals based on organizational needs.
This manual should normally contain: Main cover page, Signature identification sheet, Table of contents or index, Introductory pages on the organization of issues and the manual itself, Content.
These manuals should be prepared by collecting information, either through documentary research or from field research and information analysis; development and structuring of the manual; and validation and final presentation. In addition, this must be governed by a work plan or activity program.
The first thing that is recommended before starting each process is to make sure that the participation of the personnel responsible for the areas has been considered, since these will facilitate access to the necessary information, in addition to being able to inform higher levels of possible existing problems in the elaboration of the same.
The types of information required for the development of the manual would be, among others: General data on the area in which its procedures will be defined: Financial Economic Area. Organic structure: it is necessary to know in a general way all the areas that make up the Financial Economic Directorate. Current and / or previous regulations: knowledge of the set of rules and policies applicable to each of the activities carried out in the area is required. The information on general, specific procedures or, where appropriate, must detect which ones will be developed: Refers to the need to compile those procedures that have already been identified in each of the work areas; or to investigate to which work process or functions their procedures were elaborated. The forms and annexes of use during the process (original),which are basically documents or work papers to support activities, such as: requisitions or requests.
Mind Manager Software
Tools to facilitate the organization and implementation of the Organization Manual and Internal Control Procedure (Mind Manager).
Concept maps are tools for representing knowledge. They serve to express graphically, with brief written texts and lines, the significant relationships between certain concepts that, when combined, form propositions. The conceptual map is, therefore, a schematic resource used to represent a set of conceptual meanings included in a propositional structure. Concept maps provide a synthetic summary, arranged in a hierarchical manner.
As the studies done so far demonstrate, concept maps are very useful. They can be used as a resource to organize and visualize the work plan, to show the relationships between different contents, or as a hierarchical and structuring instrument for key concepts.
The use of the conceptual map as a prior organizer can be an ideal means for planning and greatly facilitates the exposition of the contents, at the same time, it presents a schematic and global vision of what is going to be shown. Below we present the general procedure to follow to construct concept maps. 1. Classify the concepts by levels of abstraction and inclusivity: this will allow you to establish levels of coordination and subordination between the concepts. 2. Identify the nuclear concept: if it is more abstract than the others, locate it at the top of the map, if it is not, highlight it with a different color. 3. Build a first concept map:do not forget that the map must be organized hierarchically and that all the links used in the map must be labeled with the most appropriate linking words. 4. Rework the map at least once: this allows identifying new, unforeseen relationships between the concepts involved.
Mind Manager software is a visual tool that offers business professionals a more efficient way to electronically capture, organize, and communicate information and ideas.
This software has templates, maps and blank tables that allow entities to better integrate all their information while maintaining corporate knowledge.
Chapter II: Characterization of Branch AA and Proposal of the Organization and Procedures Manual of the Internal Control System.
Characterization of the AA Branch.
The branch AA municipality X, Y, is located in Z, the G of F of the 200X was constituted.
Corporate Purpose of the AA Branch
The AA Branch has as its fundamental activity to control and direct the Administrative Units and any other type of organization to carry out the activities of all the approved corporate objects.
This entity also provides the following services:
Retail and wholesale marketing of merchandise in freely convertible currency, photo video services, gastronomic sales, fuel sales.
The Branch has X Business Units
Accounting is centralized in Branch AA and all operations are carried out automatically. The SI Inventory 6.0.6 and SAGEF programs are used.
The Mission, Vision, and Values are characterized, a diagnosis is made using the SWOT matrix, the strategic problem and the strategic solution are detailed. Suppliers, customers are detailed in the report.
Procedure for preparing the Organization Manual and Internal Control Procedures for the Financial Economic Management of Branch AA
- Approval
For its approval, the AA Branch issues a Resolution that endorses said Manual of Organization and Procedures of Internal Control:
To: Directors, Specialists, Managers of AA BRANCH.
- Sections and Groups
Features of the Manual
The Internal Control Organization and Procedures Manual, hereinafter the Manual, is made up of one or more folders, made up of interchangeable sheets, each identified numerically according to the groups and subgroups established according to the different matters related to the lines of Businesses and activities that are executed in the System of the Corporation YY hereinafter AA.
The Manual is in digital form in the Systems and Organization Standards Directorate and will be gradually incorporated into the FTP site on the AA Branch Intranet.
Its content is mandatory for the instances to which it is addressed as long as it is not expressly substituted or repealed by the authority that issued it.
goals
Sections
In order to group the different matters related to the functions and activities carried out in the AA Branch, the Manual has been divided into the following sections
- Section 000 Guide to the Manual and Use; includes an extensive explanation of the structure, use and content of the Manual. Section 100 Structure and Functions; It includes the structure, functions and powers of the different levels of management of Cubalse and those matters that are applicable and concern all areas, or provide basic services to them.150 Of the Organization and that of Management; It includes the organization of the different levels of management of Cubalse and those matters that are applicable and concern all areas, or provide basic services to them. Section 200 On the Organization of Production and Services and Technological Management; It basically comprises the operations related to the rules, instructions and procedures, which are carried out in the commercial activity and services such as:Recruitment Committee, Legal regulations related to commercial activity, Purchases, Imports and Sales among others. Section 300 Of the Economy; It includes the control system for compliance with economic and financial indicators, with Cubalse's economic and financial policy, and with the norms and procedures related to the activities of the Treasury, Accounting, Planning, Economic Analysis, Prices and Statistics. Section 400 On Internal Services and Investments; It includes those matters related to the development programs and the investment process in Cubalse, among others: Committee on Investments and Contracting of Technical Works and Services, Legal Regulations related to the activity of investments and development, Technological Processes, Maintenance and Technical Services, among others..Section 500 of the Human Resources Management System; includes those matters related to the workforce such as: Tables, Disciplinary Regulations, Training of cadres and officials, Employment and Stimulation. Section 600 On Oversight and Control; It includes those matters related to the provisions of the different organizations of the Central State Administration and by Cubalse in matters of Internal Control, including: Audit, Control, Price Inspection, Labor Inspection and Safety and Protection. Section 605 Internal Control System; It includes everything related to Internal Control, its components and its regulations.Training of cadres and officials, Employment and Stimulation. Section 600 On Oversight and Control; It includes those matters related to the provisions of the different organizations of the Central State Administration and by Cubalse in matters of Internal Control, including: Audit, Control, Price Inspection, Labor Inspection and Safety and Protection. Section 605 Internal Control System; It includes everything related to Internal Control, its components and its regulations.Training of cadres and officials, Employment and Stimulation. Section 600 On Oversight and Control; It includes those matters related to the provisions of the different organizations of the Central State Administration and by Cubalse in matters of Internal Control, including: Audit, Control, Price Inspection, Labor Inspection and Safety and Protection. Section 605 Internal Control System; It includes everything related to Internal Control, its components and its regulations.Section 605 Internal Control System; It includes everything related to Internal Control, its components and its regulations.Section 605 Internal Control System; It includes everything related to Internal Control, its components and its regulations.
Title I Of Risk Management; refers to the structured process of the entire organization to identify, evaluate, measure and report threats and opportunities that affect the entity.
Title II Of Information and Communication; It refers to the process of capturing, processing and transmitting all the information in such a way that it reaches all sectors of the entity in a timely manner.
Title III Of the Supervision or Monitoring; it refers to the process of continuous evaluation of internal control by the different management structures.
Title IV Management Audit; refers to the process that diagnoses the current state of the entity's operations and the failures that may arise
Title V Annexes
- Section 700 CDI; includes those matters related to the Department of Informatics and Communications.
Groups
To treat separately the different subjects that comprise each of the previous Sections, they have been divided into groups.
Subgroups
In the necessary cases, each group is divided, in turn, into subgroups, in which the procedures relating to the different peculiarities of the matter that are regulated in the group are collected.
Titles
In those cases where the procedures (topics or aspects) collected in a subgroup refer to different information or works, the exposition of which should be done separately to facilitate their quick location or better understanding, the subgroups may be divided into "Titles", consigning to continuation of the digits that identify the subgroup of that word and if it is necessary to create more than one, they will be identified with Roman numbers (I, II, III, IV…)
- Format
Aspects to consider when preparing the manual sheets: All documents will be written in the WORD text editor
Paper size: letter (8 ½ x 11). Orientation: Vertical. (In the case of preforms or tables that require it, horizontal orientation can be used).
Typeface: Times New Roman, 12 points. Presentation style: Justify en bloc. All the sheets, according to the type of document, will have the heading according to the formats that appear below:
• Top left corner: Logo of Branch AA.
• Central upper part:
- In the first line, the type of Legal Norm or document that gives rise to the issuance of the instruction that is regulated will be recorded. (Example: Resolution, Instruction, Procedure, Circular, etc.) Under the above in the table, the name of the group will be indicated with capital letters. Under the above and also with capital letter, the name of the subgroup.
• Top right corner:
- At the level of the name of the source document, the initials of the Vice Presidency shall be recorded that at the time of issuing the normative document is attending to the activity and separated by a hyphen, the acronyms that identify the Executive Directorate, Functional Directorate or level of the Branch responsible for its issuance. Below the above, the number of the subgroup shall be recorded, which consists of two groups of digits separated by a hyphen, which indicate the following:
Section Group Subgroup
X XX XX
- Next, the order number of the Manual Service by which the procedure, rule or instruction is put into effect will be reflected. Next, the month and year in which the normative document will be issued will be recorded. The pages that make up the minor division that is adopted when exposing the norms and procedures as well as the number of pages that comprise it.
In the last space called version, Proposal will be recorded, when the proposed version is the object of its publication. When it comes to different versions that are circulated to know criteria, suggestions, etc. it will be recorded: first, second, third, as appropriate.
Example of Circular transcribing a Law, Decree Law, Resolution, etc.
| Logo
Organization and Internal Control Procedures Manual |
RESOLUTION |
VPFC - DNSO |
|
GROUP NAME SUBGROUP NAME |
MIP XXX - XX | |
| Circular No X | ||
| Date: June XX / 200X | ||
| PAGE 15 of X | ||
| Version: Proposal |
To: Vice Presidents, Directors, Heads of Independent Groups, Provincial Representatives, ……… (And other recipients of the Resolution
Subject: Resolution No. XX / 07 of the President of the YY Corporation. Approving the Procedure for the Preparation ……………..
Companions:
For your knowledge and strict compliance, we transcribe below the Resolution of the matter.
Resolution No. XX - 07
Because ………….
Example of a manual sheet establishing a procedure:
|
Organization and Internal Control Procedures Manual |
PROCESS |
VPFC - DNSO |
|
GROUP NAME SUBGROUP NAME |
MIP xxx - xx | |
| Service No. X | ||
| Date: June XX / 200X | ||
| PAGE 15 of x | ||
| Version: Proposal |
Organization and Internal Control Procedures Manual VPFC Procedure - DNSO
|
Organization and Internal Control Procedures Manual |
VPFC - DNSO | |
|
LETTER REMESA |
MIP - xxx - xx | |
| Service No. X | ||
| PAGE 16 of x | ||
| Version: Proposal |
Procedure for the Preparation, Execution and Control of the Plan of …………..
Example of the Remittance Letter to be used to send the services and circulars:
VPFC Internal Control Organization and Procedures Manual - DNSO
| To: Vice Presidents, Directors, Heads of Independent Groups, and (other recipients of the manual service) | Date: September 13, 200X |
Companions:
1. The pages of the Manual that are listed below will be given the disposition indicated for them.
Group Subgroup Sheet No. Disposition Observations
2. At the bottom of the page it will be recorded on each sheet and with the Times New Roman font 8 points:
YY Branch Organization Manual and Internal Control Procedures
3. The main titles will be written in capital letters and the intermediate ones in lowercase, both in bold.
Aspects to take into account when preparing the manual procedures In general, the procedures that are elaborated in the Directorate, and if possible the projects received from other directorates, should in their structure, contain the following aspects: Introduction: Brief explanation of the causes or antecedents that originate the need for the procedure.
Objectives: Those that the procedure must achieve. Scope or subjects included: Cubalse levels, areas or entities that must apply the procedure. Terms and definitions:
Brief explanation of some of the concepts, nomenclatures etc. used in the procedure.
a) Procedure: Chronological succession of operations linked together, to carry out a specific activity or task within a predetermined scope of application.
b) Annexes: Format of the Preforms or models, which must be used in the development of the task as well as the instructions to complete them, number of copies, file form, etc.
Implementation and Modification
Normative Faculty
- The power to issue legal regulations for the operation of Corporación YY and establish related procedures.The legal regulations that must be followed indefinitely will be circulated through sheets of the Instructions and Procedures Manual through the FTP site of Corporación YY When the above regulations refer to situations of transit or work that will be carried out at a certain time, without its systematic repetition being foreseen, will be circulated by means of Transitional Instructions that will be automatically canceled at the end of their validity, unless the matter included in them requires their subsequent inclusion in the Manual. Legal regulations contained in the Manual and in the Transitional Instructions will be complied with without modification or deviation by all levels of Corporación YY. In case of emergency,The President, Vice Presidents or Directors of Corporación YY, according to the level of approval of the legal norm, may make modifications or cancellations to the instructions in the Manual by Fax, Email, floppy disks or Memorandum, which will later be confirmed by the established substitution channels. of leaves.
Application
The legal norms established in the Manual will be applied to the letter, even in those cases where those forced to comply disagree on any aspect or have devised procedures or methods that they consider more effective than those established.
This is based on the need to maintain operational and informative uniformity at all levels of Corporación YY.
Other provisions
- Every Corporación YY worker has the right and the obligation to express to his immediate superior, the discrepancies or suggestions that he considers to improve the operating procedures and the quality of the information. In no case will a suggested procedure be applied, even if it has been considered acceptable For the higher level, before receiving the corresponding update of the Manual or Transitional Instruction. The provisions of the previous section pursue that in addition to maintaining the essential uniformity in the work of all instances, the improvements provided by any worker or group, are taken advantage of in Corporación YY and not only in the entity in which the idea arises.
Conservation and Update
- The update of the Manual for the first time will be carried out by sending the AA Corporation entities, by email, fax or floppy disk the rules and instructions. The future incorporation of groups or subgroups or modifications of the legal regulations in force, will be made Through the FTP site Access to the documents containing the legal regulations issued by the Corporation will be read only, so that they cannot be modified by persons not authorized to do so.When downloading from the FTP site or upon receipt of diskettes or files Containing instructions or procedures, the holders of the manuals will proceed as follows: They will print them in the required copies. They will carefully read the legal regulations, to study the content of the sheets that are instructed to add or replace,with a view to specifying the implication that they have on the work of their entity: They will discuss and instruct the workers who are subordinate to them about the new legal regulations received. They will file the sheets in the folder enabled for the Manual in the place, group and subgroup indicated.
Distribution and Utilization
- The Manual or certain parts of it are assigned to the workers by reason of the position they carry out, in order for them to be used for the better development of their functions. The distribution of copies of the Manual sheets by the receiving entity and its use, will comply with what is established below: Each worker is obliged to study the instructions contained in the Manual related to the functions of their job and to ask their superior for the clarifications and explanations they need for their job. interpretation.
The foregoing does not prevent any worker who happens to occupy a position that has not been performed to explain to him verbally the way in which the tasks to be carried out are carried out. Newly recruited workers will be instructed on how to locate the subject they wish to consult in the Manual and will be provided with a reading of the “Guide and Use of the Manual” group so that they have a general idea of its content. The worker will be asked about the need to consult the instructions on a certain subject, reasoning with him as to the location
YY Corporation FTP site
- A folder enabled for the Standards, Systems and Organization Directorate called "Methods and Systems for Internal Control" is located on the Corporación YY FTP site, where the Instructions and Procedures Manual of Cubalse is located. According to their classification, all the Procedures and Regulations that are issued from the creation of this Directorate and, on the other hand, will gradually update the Regulations approved in previous years that are still in force, this work that will require greater amount of time for the review involved.
How will update the folder "Methods and Systems".
- Within the "Methods and Systems" folder are two subfolders called the first "Manual" and the second "Updates". In the "Manual" subfolder will be located the services of the Manual that include all the Resolutions, Circular Letters and Instructions that they put Regulations, Manuals, Norms and Procedures are in force, among other indications, which due to their importance, it is necessary to locate in the Manual, whether they are transitory or not. Taking into account the above, each time a new regulation is issued it will be placed on the site FTP and for the only time, it will be sent by email to all Cubalse dependencies that need it. Within the sub-folder "Updates" will be reflected the changes made to any service located in the Manual found on the FTP site,so the revision of this folder becomes mandatory every time a regulation is consulted, since the updates will not be sent by email but will be placed on the FTP site whenever they are made.
In this way, it is a matter of establishing a constant update of the FTP site, for which the Standards, Systems and Organization Directorate is solely responsible.
Organization and Procedures Manual of the Internal Control System.
Taking into account the procedure previously explained below, the proposal for the Organization and Internal Control Procedures Manual for the AA Branch is ready.
Conclusions
1. The criteria of the different consulted authors are shared, which confirm the perception that Internal Control should be a Comprehensive System that provides information in a systematic way for decision-making in the management process.
2. The design of an Internal Control Procedures and Organization Manual constitutes a high-value tool in Management Control as an instrument for applying the Comprehensive Internal Control System at the AA branch
3. The Internal Control Organization and Procedures Manual It constitutes a strength for the Internal Control System since it facilitates the carrying out of the fundamental activities that allow the fulfillment of the goals and objectives set by the entity.
4. It is necessary to train workers on the general elements of control in order to achieve the scope required by the Internal Control System.
Bibliography
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4. Authors Collective: Business Improvement in Cuba, Editorial Félix Varela, Havana, 1999.
5. Authors Collective: Integrated Framework of Internal Control for Latin America, Latin American Federation of Internal Auditors-FLAI, September, 2004.
6. Committee Executive of the Council of Ministers (1998): Bases for Business Improvement, Cuba.
7. Manual of General Internal Control Standards for the Comptroller General of the Republic and the entities and Bodies subject to its control. June 2002. Costa Rica. Viewed at: http://www.mag.go.cr.
8. Ministry of Audit and Control. 2001. Auditor's Manual. Volume 1. Chapter 2. Document 6 "Principles and Regulations of Internal Control". Havana. Cuba
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