I. TITLE OF THE INVESTIGATION STUDY
"Control in the framework of the public management process: Analysis and conversion of weaknesses into strengths"
II. AUTHOR'S NAME
III. PLACE WHERE THE THESIS WILL BE DEVELOPED
Lima Peru
IV. PROJECT DESCRIPTION
4.1. BIBLIOGRAPHIC BACKGROUND
The existence of the following antecedents has been determined:
a) Thesis: “ The internal control processes in the budget execution department of a state institution ”, presented by Campos Guevara, Cesar Enrique to obtain the Master's Degree in Administration at the National University of San Marcos in 2006. In In this work, the author identifies the internal control system processes that are applied in the execution departments of state institutions. Within these, it indicates the rules, procedures and practices applicable in said departments.
b) Thesis: “ Proposal for an internal control system for hotel companies in the department of Tumbes”. Presented Br. Ana Isabel Bautista Tang and Sonia Quispe Infante to apply for the Professional Title of Public Accountant at the National University of Tumbes, in 2006. The general objective of this research was to propose an Internal Control System for hotel companies in the Department from Tumbes.
c) Thesis: " Approach to an Internal Control system for Savings and Credit Cooperatives", presented to opt for the Bachelor of Administration Degree by Br. Percy Alejandro Salazar Luna, at the National University of Tumbes, in 2006. This work was developed taking the San Nicolás Tumbes Savings and Credit Cooperative as a model; The main objective was to deeply study the principle and basic elements of a good internal control system in the cooperative under study, mainly due to the problems it is experiencing. It is concluded that cooperativism, due to the principles it supports and the purposes it pursues, is one of the most adequate means to promote and achieve structural changes in the economic and social development of the country. Cooperatives have been operating with deficiencies in their organizational, administrative and accounting aspects,reason why internal control is vital for the good progress in the administration and organization of this institution. In addition, there is a lack of training and education for members of the management.
d) Thesis: “ The administrative process of internal control in municipal management”, prepared by Gilberto E. León Flores and José María Zevallos Cardich to choose the Master's Degree in Administration at the Universidad Nacional Federico Villarreal, in 2001. In this This work describes the stages of internal control and how it affects the management of the municipalities of our country, because of the approach it has will be useful for this work.
e) Thesis: " Quality control in industrial development ", prepared by Lorgio Heraclio Trinidad Rivera and Milciades Roberto Esparza Silva to support the Master's Degree in Industrial Engineering at the Federico Villarreal National University in 2002. In this thesis the authors study all the criteria that must be met to produce quality goods. These criteria could be adapted to urban transport service companies, to provide the quality services required by the community.
f) Thesis: “ The management audit in the modern company”, prepared by Juan Héctor Bendezú Iriarte to choose the degree of Master in Administration at the Federico Villarreal National University in 2000. The author in this thesis develops the audit process management, treating first the study and evaluation of the internal control system, which will be extremely useful for this research work
g) Tesis: “Control eficaz de la gestión de una empresa cooperativa de servicios múltiples”, elaborado por Domingo Hernández Celis, para optar el Grado de Maestro en Auditoria Contable y financiera en la Universidad Nacional Federico Villarreal el año 2003. En este trabajo el autor describe la forma como implementar un sistema de control interno eficaz, el mismo que es un verdadero facilitador de la gestión óptima de las empresas cooperativas. Este trabajo puede ser tomado como referencia, para el control en el marco del proceso de gestión pública.
h) Thesis: “Control of Non-Governmental Development Organizations for the effectiveness of International Technical Cooperation”, prepared by Domingo Hernández Celis, to opt for the Doctor of Accounting Degree, at the Universidad Nacional Federico Villarreal in 2005. In this The author's work deals with the study of control applied in Non-Governmental Development Organizations. This work will be taken as a reference because it seeks to convert control problems into viable solutions and facilitators of institutional management.
4.2. DELIMITATION OF THE INVESTIGATION
SPACE DELIMITATION:
This research includes National Universities, because these entities need to convert the weaknesses of their control system into strengths and thus facilitate administrative and academic management.
TEMPORARY DELIMITATION:
This research is current, although information from the past will be taken to analyze, synthesize and interpret it and on that basis be able to project it in a beneficial way to turn weaknesses into strengths and facilitate institutional management.
SOCIAL DELIMITATION:
As part of the investigation, relations will be established with the authorities, officials, teachers, workers and students of the National Universities.
4.3. PROBLEM STATEMENT
4.3.1. PROBLEM FORMULATION
The National Universities are in charge of managing the educational services. For the development of these activities, they have human, material and financial resources that are obtained, applied and informed in accordance with the applicable regulations of the sector. The evaluation of the control system has determined that it is not a facilitator of the efficiency, effectiveness and economy of resources; since it does not fulfill the conditions of being a process carried out by all the personnel nor does it contribute to the achievement of the specific objectives. Thus, control does not provide the reasonable degree of security that authorities need.
The disarticulation of control and management is manifested in the lack of efficiency and effectiveness of operations, lack of reliability of administrative, financial and economic information and even in the lack of compliance with laws and regulations applicable to the sector.
It has been determined that control, working in isolation, does not constitute a series of actions that should extend to all the activities of the entity.
Institutions have incorporated controls; however, they do not influence the entity's ability to achieve its intended objectives. The incorporation of controls has not had a significant impact on cost containment and response times.
The application of the control evaluation has determined problems in the planning, organization, direction and execution of activities and especially in the control system. Said problems have been reported first as findings and then as observations in the respective reports formulated by the Control area; however, these have not been taken into account by the authorities, due to various reasons, but mainly due to their extemporaneousness.
Traditional control has been applied on the basis of accomplished and accomplished (historical) events; This does not make it easier for management to apply adjustments, regularizations, conversion of weaknesses into strengths and specify the timely feedback of institutional activities.
As a result of this presented panorama, we can conclude that the concepts, criteria, guidelines and control practices applied have not facilitated the solution of the problem. In addition to the lack of opportunity, control suffers from deficiencies in the application of technical standards, which diminishes its relevance and transcendence in management, determining the lack of reliability of those who make use of institutional information. Another similar situation is the non-incorporation of the new philosophy and doctrine, given by the treatment of the control environment, risk assessment, control activities, information and communication and the punctual and / or permanent monitoring that have been applied throughout the world., as a way of converting weaknesses into strengths and contributing effectively to management optimization.
4.3.2. SYSTEMATIZATION OF THE PROBLEM
GENERAL PROBLEM:
How can control convert weaknesses into strengths and contribute effectively to continuous improvement and institutional competitiveness?
SPECIFIC PROBLEMS:
1. How is it possible that control facilitates the efficiency and effectiveness of public management?
2. What components of the control system should be defined to facilitate continuous improvement and competitiveness in the framework of the public management process?
4.4. THEORETICAL AND CONCEPTUAL FRAMEWORK
4.4.1. THEORETICAL FRAMEWORK
4.4.1.1. CONTROL WITHIN THE FRAMEWORK OF PUBLIC MANAGEMENT
Analyzing Uceda (2007), public management is the set of actions through which entities tend to achieve their ends, objectives and goals, which are framed by government policies established by the Executive Branch.
According to UNA and IDG (2005), sustainable and equitable growth also depends on the quality and efficiency of policies and public management. As the experience of the region shows, without fiscally responsible and sustained public policies, macroeconomic stability ends up affected, rendering the remaining efforts for the development of production and poverty reduction of little use. Strengthening accountability frameworks that encourage the efficiency and effectiveness of public policies and management are not only the best preventive measure against fiscal imbalances, but the only way to satisfy essential social and economic needs to promote sustainable growth and equitable. In particular,It is a priority to adapt the resource allocation systems to respond to the needs of the most disadvantaged and adapt the delivery systems to their specific circumstances, enabling their participation and direct involvement. To achieve all this, it is essential to overcome the politicization of public administrations and their "capture" by private interests, which translate into phenomena of clientelism and cronyism that are the cause of inefficiency, corruption and distortion of state interventions and policies. Public administrations must constitute the institutional platform for the elaboration and implementation of public policies that respond to the general interests of society, with full subordination to legality. The administrative institutions of the countries must be strengthened,not only because of their importance in themselves, but also because their solidity is a necessary condition to make investments in any sector profitable.
Interpreting Pérez-Carballo (2007), the economic, financial, accounting and other integration has created the need to integrate methodologies and concepts at all levels of the various administrative and operational areas in order to be competitive and respond to the With new institutional requirements, the treatment of internal control in the framework of public management arises. Control is understood as the process that the administration executes in order to evaluate specific operations with reasonable security in three main categories: i) Effectiveness and operational efficiency; ii) Reliability of financial information; and, iii) Compliance with policies, laws and regulations.
According to UNA & EL IDG (2005), the control has five components that can be implemented in all companies according to administrative, operational and size characteristics; The components are: a control environment, a risk assessment, control activities (policies and procedures), information and communication, and finally monitoring or supervision.
Analyzing Coopers & Lybrand (2004), the implementation of control implies that each one of its components is applied to each essential category of the entity, becoming a permanently integrated and dynamic process. As a previous step, each entity must establish the objectives, policies and strategies related to each other in order to guarantee organizational development and compliance with corporate goals; Although the internal control system must be intrinsic to the entity's management and seeks to make it more flexible and competitive in the market, certain inherent limitations occur that prevent the system as such from being 100% reliable and where a small percentage of uncertainty,For this reason, an adequate study of internal and external risks is necessary in order for the control to provide reasonable security for the category for which it was designed, these risks can be attributed to human failures such as erroneous decision making, simple mistakes or collusions of several people, that is why it is very important to hire personnel with great professional capacity, integrity and ethical values as well as the correct allocation of well-defined responsibilities where they are interrelated with each other in order that they are not break the control chain by strengthening its application environment, each person is a link that guarantees to a certain extent the efficiency and effectiveness of the chain,It should be noted that the main responsibility for the application of internal control in the organization must always be at the head of the administration or senior management in order for there to be a real commitment at all levels of the company, being the function of the internal audit department. or whoever takes his place, the appropriate evaluation or independent supervision of the system in order to guarantee updating, efficiency and existence over time, these evaluations can be continuous or punctual without having a predetermined or fixed frequency, it is also convenient to maintain correct documentation in order to analyze the scope of the evaluation, authorization levels, performance indicators and impacts of the deficiencies found,These analyzes must detect at an opportune moment how internal or external changes in the business context may affect the development or application of policies based on the achievement of the objectives for their correct evaluation.
According to INTOSAI (1994), the understanding of control can help any entity obtain significant achievements in its performance with efficiency, effectiveness and economy, indispensable indicators for analysis, decision-making and goal fulfillment.
According to Aldave & Meniz (2005), coinciding with the Office of the Comptroller General of the Republic (2004), they explain that Control is the system made up of the organizational structure and the set of plans, methods, principles, rules, procedures, and mechanisms for verification and evaluation adopted by public sanitation companies, in order to ensure that all activities, operations and actions, as well as the administration of information and resources, are carried out in accordance with current constitutional and legal regulations, within the policies drawn up by the management and in attention to the planned goals or objectives. The exercise of Control must consult the principles of equality, efficiency, economy, speed, morality, publicity and valuation of environmental costs. In consecuense,It must be conceived and organized in such a way that its exercise is intrinsic to the development of the functions of all the existing positions in the entity, and in particular those assigned to those who have responsibility for command. Control will be expressed through the policies approved by the levels of management and administration of the respective entities and will be complied with at all levels of the administrative structure, through the development and application of management techniques, verification and evaluation of administrative regulations, of functions and procedures manuals, information systems and personnel selection, induction and training programs.and in particular those assigned to those who have command responsibility. Control will be expressed through the policies approved by the levels of management and administration of the respective entities and will be complied with at all levels of the administrative structure, through the development and application of management techniques, verification and evaluation of administrative regulations, of functions and procedures manuals, information systems and personnel selection, induction and training programs.and in particular those assigned to those who have command responsibility. Control will be expressed through the policies approved by the levels of management and administration of the respective entities and will be complied with at all levels of the administrative structure, through the development and application of management techniques, verification and evaluation of administrative regulations, of functions and procedures manuals, information systems and personnel selection, induction and training programs.verification and evaluation of administrative regulations, function and procedure manuals, information systems, and personnel selection, induction, and training programs.verification and evaluation of administrative regulations, function and procedure manuals, information systems, and personnel selection, induction, and training programs.
Uceda Arcas (2007), agrees with Pérez-Carballo (2007), when they indicate that Internal Control is an organization plan for all the coordinated methods in order to: a) Protect the organization's resources, seeking their proper administration before possible risks that affect them; b) Guarantee the effectiveness, efficiency and economy in all operations, promoting and facilitating the execution of the functions and activities defined for the achievement of the institutional mission; c) To ensure that all the activities and resources of the organization are directed to the fulfillment of the objectives of the entity; d) Guarantee the correct evaluation and monitoring of organizational management; e) Ensure the timeliness and reliability of the information and its records; f) Define and apply measures to prevent risks,detect and correct deviations that occur in the organization and that may affect the achievement of its objectives; g) Guarantee that the Internal Control System has its own verification and evaluation mechanisms; h) Ensure that the entity has adequate planning processes and mechanisms for organizational design and development.
INTOSAI (1994), CGR (2006) And Aldave & Meniz (2005), agree that every entity under the responsibility of its managers, must at least implement the following aspects that should guide the application of Control: a) Establishment of objectives and both general and specific goals, as well as the formulation of necessary operating plans; b) Definition of policies as action guides and procedures for the execution of processes; c) Adoption of an adequate organization system to execute the plans; d) Precise delimitation of authority and levels of responsibility; e) Adoption of norms for the protection and rational use of resources; f) Personnel management and administration according to a system of merits and sanctions;g) Application of the recommendations resulting from the Internal Control evaluations; h) Establishment of mechanisms that facilitate citizen control over the management of entities; i) Establishment of modern information systems that facilitate management and control; j) Organization of reliable methods for management evaluation; k) Establishment of induction programs, training and updating of managers and other personnel of the entity; l) Simplification and updating of rules and procedures.k) Establishment of induction programs, training and updating of managers and other personnel of the entity; l) Simplification and updating of rules and procedures.k) Establishment of induction programs, training and updating of managers and other personnel of the entity; l) Simplification and updating of rules and procedures.
Interpreting the CGR (2006-A), government control consists of the supervision, surveillance and verification of the acts and results of public administration, in attention to the degree of efficiency, effectiveness, transparency and economy in the use and destination of the State resources and assets, as well as compliance with legal regulations and policy guidelines and action plans, evaluating the administration, management and control systems, with the aim of improving them through the adoption of preventive and corrective actions relevant. Government control is internal and external and its development constitutes a comprehensive and permanent process
According to the CGR (2006-C), internal control includes precautionary, simultaneous and subsequent verification actions carried out by the entity subject to control, in order for the management of its resources, assets and operations to be carried out correctly and efficiently.. Its exercise is prior, simultaneous and subsequent.
According to the CGR (2006-C), external control is understood as the set of technical policies, standards, methods, and procedures that are applicable to the Office of the Comptroller General or another organ of the System on behalf of or appointed by it, in order to supervise, monitor and verify the management, acquisition and use of state resources and assets. It is fundamentally carried out by means of selective and subsequent control actions. In accordance with its supervisory and surveillance roles, external control may be preventive or simultaneous, when it is specifically determined by the Law of the National Control System or by express regulations, without in any case entailing interference in the management and management processes. in charge of the administration of the entity, or interference in the corresponding subsequent control. For your exercise,systems of control of legality, management, financial, results, evaluation of internal control or others that are useful depending on the characteristics of the entity and the matter of control will be applied, and may be carried out individually or in combination. Likewise, inspections and verifications may be carried out, as well as the procedures, studies and investigations necessary for control purposes.
According to the CGR (2006-C), the Internal Control Standards have the following international regulations and documents as their legal and documentary basis: Law No. 28716, Law of Internal Control of State entities; Law No. 27785, Organic Law of the National Control System and the General Comptroller of the Republic; Government Audit Manual, approved by RC N ° 152-98-CG; Internal Control - Integrated Framework, Committee of Sponsoring Organizations of the Treadway Commission, 1990; Guide for the internal control standards of the public sector, INTOSAI, 1994. The Internal Control Standards constitute guidelines, criteria, methods and provisions for the application and regulation of internal control in the main areas of administrative or operational activity of the entities., including those related to financial management, logistics,personnel, works, information systems and ethical values, among others. They are issued with the purpose of promoting an adequate administration of public resources in State entities. The owners, officers and servers of each entity, according to their competence, are responsible for establishing, maintaining, reviewing and updating the internal control structure depending on the nature of their activities and volume of operations. Likewise, it is the obligation of the holders to issue the specific rules applicable to their entity, according to their nature, structure, functions and processes, in harmony with the provisions of this document. The Internal Control Standards are based on generally accepted criteria and practices, as well as those guidelines and control standards.of information systems and ethical values, among others. They are issued with the purpose of promoting an adequate administration of public resources in State entities. The owners, officers and servers of each entity, according to their competence, are responsible for establishing, maintaining, reviewing and updating the internal control structure depending on the nature of their activities and volume of operations. Likewise, it is the obligation of the holders to issue the specific rules applicable to their entity, according to their nature, structure, functions and processes, in harmony with the provisions of this document. The Internal Control Standards are based on generally accepted criteria and practices, as well as those guidelines and control standards.of information systems and ethical values, among others. They are issued with the purpose of promoting an adequate administration of public resources in State entities. The owners, officers and servers of each entity, according to their competence, are responsible for establishing, maintaining, reviewing and updating the internal control structure depending on the nature of their activities and volume of operations. Likewise, it is the obligation of the holders to issue the specific rules applicable to their entity, according to their nature, structure, functions and processes, in harmony with the provisions of this document. The Internal Control Standards are based on generally accepted criteria and practices, as well as those guidelines and control standards.They are issued with the purpose of promoting an adequate administration of public resources in State entities. The owners, officers and servers of each entity, according to their competence, are responsible for establishing, maintaining, reviewing and updating the internal control structure depending on the nature of their activities and volume of operations. Likewise, it is the obligation of the holders to issue the specific rules applicable to their entity, according to their nature, structure, functions and processes, in harmony with the provisions of this document. The Internal Control Standards are based on generally accepted criteria and practices, as well as those guidelines and control standards.They are issued with the purpose of promoting an adequate administration of public resources in State entities. The owners, officers and servers of each entity, according to their competence, are responsible for establishing, maintaining, reviewing and updating the internal control structure depending on the nature of their activities and volume of operations. Likewise, it is the obligation of the holders to issue the specific rules applicable to their entity, according to their nature, structure, functions and processes, in harmony with the provisions of this document. The Internal Control Standards are based on generally accepted criteria and practices, as well as those guidelines and control standards.
The Internal Control Standards aim to promote the strengthening of internal control systems and improve public management, in relation to the protection of public heritage and the achievement of institutional objectives and goals.
In this context, the objectives of the Internal Control Standards are:
a) Serve as a frame of reference in terms of internal control for the issuance of the respective institutional regulations, as well as for the regulation of administrative and operational procedures derived from it;
b) Guide the formulation of specific standards for the operation of management processes and management information in entities;
c) Guide and unify the application of internal control in entities.
According to the CGR (2006-C), the Internal Control Standards apply to all entities within the scope of the National Control System (SNC), under the supervision of the heads of the entities and the heads responsible for government administration or officials who take their place. In the event that the Internal Control Standards are not applicable in certain situations, the scope of each standard should be specifically mentioned in the limitations section. The Comptroller General of the Republic (CGR) will establish the procedures to determine the exceptions that may arise. The aforementioned norms do not interfere with the provisions established by the legislation, nor do they limit the norms dictated by the administrative systems, as well as other norms that are in force.The application of these standards contributes to the strengthening of the internal control structure established in the entities.
The CGR, in its capacity as the governing body of the SNC, is competent for the issuance or modification of internal control standards applicable to public sector entities subject to its scope, in order to guide the effective implementation, operation and evaluation. of internal control in state entities.
Law No. 28716, Law of Internal Control of State Entities, defines internal control system as the set of actions, activities, plans, policies, regulations, records, organization, procedures and methods, including the attitude of the authorities. and the staff, organized and instituted in each state entity, to achieve the institutional objectives it seeks. Likewise, the Law states that its components are made up of:
a) The control environment, understood as the organizational environment favorable to the exercise of practices, values, behaviors and appropriate rules for the operation of internal control and scrupulous management
b) The risk assessment, which must identify, analyze and manage the factors or events that may adversely affect the fulfillment of the institutional purposes, goals, objectives, activities and operations.
c) The activities of managerial control, which are the control policies and procedures imparted by the owner or designated officer, management and the competent executive levels, in relation to the functions assigned to the staff, in order to ensure compliance with the entity's objectives
d) Prevention and monitoring activities, referring to the actions that must be taken in the performance of the assigned functions, in order to care for and ensure, respectively, their suitability and quality for achieving the objectives of internal control
e) The information and communication systems, through which the registration, processing, integration and dissemination of information, with databases and accessible and modern computer solutions, effectively serve to provide reliability, transparency and efficiency to processes institutional management and internal control
f) The monitoring of results, consisting of the updated review and verification of the attention and achievements of the internal control measures implemented, including the implementation of the recommendations formulated in their reports by the SNC bodies
g) Improvement commitments, on whose merit the organs and personnel of the institutional administration carry out self-evaluations for the better development of internal control and report on any deviation deficiency that can be corrected, forcing them to comply with the provisions or recommendations that are formulated to improving or optimizing their work. The Administration and the Institutional Control Body are part
According to Aldave & Meniz (2005), the adequate implantation and systemic functioning of internal control in State entities requires that the institutional administration appropriately foresees and designs a proper organization for this purpose, and promotes levels of order, rationality and the application of uniform criteria that contribute to better implementation and comprehensive evaluation.
In this sense, they are considered to be principles applicable to the internal control system:
a) Self-control, by virtue of which all officials and servants of the State must control their work, detect deficiencies or deviations and carry out corrections to improve their work and achieve the expected results;
b) Self-regulation, such as the institutional capacity to develop the provisions, methods and procedures that allow it to safeguard, carry out and ensure the effectiveness, efficiency, transparency and legality in the results of its processes, activities or operations; and, c) Self-management, by which each entity is responsible for conducting, planning, executing, coordinating and evaluating the functions under its charge, subject to the applicable regulations and objectives set for its fulfillment.
Aldave & Meniz (2005), coincide with the CGR (2006-C), when they establish that the systemic organization of control is institutionally designed and established taking into account the responsibilities of direction, administration and supervision of its functional components, for which in Its structure will include levels of strategic, operational and evaluation control. The modern approach established by COSO, the INTOSAI Guide and Law No. 28716, indicates that the components of the internal control structure are interrelated and include various elements that are integrated into the management process. Therefore, in this document, for the purposes of the proper formalization and implementation of the internal control structure in all State entities, it is conceived that it be organized based on the following fivecomponents:
a) Control environment
b) Risk assessment
c) Management control activities
d) Information and communication
e) Supervision, which groups prevention and monitoring activities, follow-up of results and improvement commitments.
These components are internationally recognized by the main world organizations specialized in internal control matters and, although their name and constituent elements may admit variations, their use facilitates the standardized implementation of the internal control structure in State entities, also contributing to its orderly, uniform and comprehensive evaluation by the competent control bodies.
According to the CGR (2006-C), internal control is carried out by various hierarchical levels. Lower-level officials, internal auditors and staff contribute to making the internal control system function effectively, efficiently and economically. The head, officials and all the entity's personnel are responsible for the application and supervision of internal control, as well as for maintaining a solid internal control structure that promotes the achievement of its objectives, as well as the efficiency, effectiveness and economy of operations. In order to contribute to the strengthening of the internal control in the entities, the owner or designated official must assume the commitment to implement the criteria described below:
a) Institutional support for internal controls: The head, the officials and all the entity's personnel must show and maintain a positive attitude and support for the proper functioning of internal controls. Attitude is a characteristic of each entity and is reflected in all aspects related to its performance. Your participation and support encourages the existence of a positive attitude.
b) Management responsibility: Every public official has a duty to be accountable to a higher authority and to the public for the public funds or assets in his charge or for a mission or objective entrusted and accepted.
c) Climate of trust at work: The incumbent and the officials must foster an appropriate climate of trust that ensures the adequate flow of information among the entity's employees. Trust allows promoting a work atmosphere conducive to the operation of internal controls, based on mutual security and cooperation between people as well as their integrity and competence, whose environment provides feedback on the fulfillment of duties and aspects of responsibility.
d) Transparency in government management: Transparency in the management of state resources and assets, in accordance with the respective regulations in force, encompasses both the obligation of the public entity to disclose information on the activities carried out related to compliance with its purposes as well as the power of the public to access such information, to know and evaluate in its entirety, the performance and way of conducting government management.
e) Reasonable assurance about achieving the objectives of internal control. The effective internal control structure provides reasonable assurance about achieving the stated objectives. The owner or designated official of each entity must identify the risks involved in the operations and estimate their acceptable margins in quantitative and qualitative terms, according to the circumstances.
According to the CGR (2006-C), aspects have been established for each general rule of institutional control.
GENERAL STANDARD FOR THE CONTROL ENVIRONMENT
Public management is very complex, therefore this affects the control environment, in this sense, the following aspects will be considered:
v Management Philosophy
v Integrity and ethical values
v Strategic management
v Organizational structure
v Human resource management
v Professional competence
v Assignment of authority and responsibility
v Institutional Control Body
GENERAL STANDARD FOR RISK ASSESSMENT
The risks of public management will be evaluated taking into account the following aspects:
v Risk management planning
v Identification of risks
v Risk assessment
v Risk response
GENERAL STANDARD FOR MANAGEMENT CONTROL ACTIVITIES:
The following aspects will be considered as part of this standard:
v Authorization and approval procedures
v Segregation of duties
v Cost-benefit evaluation
v Controls over access to resources or files
v Verifications and reconciliations
v Performance evaluation
v Accountability
v Documentation of processes, activities and tasks
v Review of processes, activities and tasks
v Controls for Information and Communication Technologies
GENERAL STANDARD FOR INFORMATION AND COMMUNICATION
As part of this standard, the following aspects will be defined:
v Functions and characteristics of the information
v Information and responsibility
v Quality and sufficiency of information
v Information systems
v Flexibility to change
v Institutional file
v Internal communication
v External communication
v Communication channels
GENERAL STANDARD FOR SUPERVISION
This standard will define the following:
v Basic rules for prevention and monitoring activities
v Basic rules for monitoring results
v Basic rules for improvement commitments
According to the CGR (2006-C), for proper control in the framework of public management, the following guidelines must be taken into account:
Guidelines for the exercise of Preventive Control.
1. Preventive control is exercised under the following modalities:
a) Oversight.
b) Absolution of Queries.
c) Office orientation.
d) Promotion of compliance with the entity's Commitment Agenda.
e) Promotion of Internal Control
f) Promotion of training programs.
g) OCI Commitment Agenda.
2. Preventive control is ex officio, by order of the Comptroller General or by written request of the Head of the entity or whoever substitutes for it; running before or during the performance of the corresponding activities or operations by the administration. For proper compliance, the principles that govern government control apply.
3. Preventive control does not interfere with the entity's management acts, in any form or modality, nor does it have a mandatory connotation that affects the discretionary exercise of the officials in the acts of their decision. Likewise, it does not imply the issuance of pronouncements, and even less on issues of competence of other public entities.
4. The orientation that is carried out within the framework of the preventive control, must not restrict and / or subordinate the decision taken by the administration of the entity on the subject matter of the same.
5. The exercise of preventive control should not be understood as a prejudgment or advance of opinion, therefore, it does not affect the exercise of the subsequent control function that corresponds to the System.
Criteria to consider for the exercise of preventive control.
The OCI, to exercise preventive control, must apply the following criteria:
v It is your obligation to exercise preventive control in its different modalities, for which purpose you should consider this control activity in the formulation of your Annual Control Plan, according to your operational capacity and available resources.
v The cases in which the Headquarters of the OCI considers not to exercise preventive control will be informed in writing and in a timely manner, to the Head of the entity or whoever takes his place, and to the Office of the Comptroller General of the Republic, justifying the causes.
Simultaneous internal control:
The prior and simultaneous internal control is the exclusive responsibility of the authorities, officials and public servants of the entities as their own responsibility for the functions that are inherent to it, based on the rules that govern the activities of the organization and the procedures established in their plans., regulations, manuals and institutional provisions, which contain the policies and methods of authorization, registration, verification, evaluation, security and protection.
Rear internal control:
Subsequent control is exercised by the senior managers of the server or executing official, depending on compliance with the established provisions, as well as by the institutional control body according to their annual plans and programs, evaluating and verifying the administrative aspects of the use of resources. and State assets, as well as the management and execution carried out, in relation to the goals set and the results obtained. It is the responsibility of the Head of the entity to promote and supervise the operation and reliability of internal control for the evaluation of management and the effective exercise of accountability, aiming for it to contribute to the achievement of the entity's mission and objectives. office.The Head of the entity is obliged to define the institutional policies in the annual plans and / or programs that are formulated, which will be subject to the verifications.
4.4.1.2. CONVERSION OF WEAKNESSES TO STRENGTHS
According to Johnson & Sholes (2004) and Stoner (2000), in order to make efficient and effective decisions, the problem must be identified, as well as evaluating the favorable and adverse conditions the entity is going through, it is there that the need to use SWOT ANALYSIS.
The SWOT Analysis allows identifying and evaluating the favorable or adverse factors of the environment and the internal environment. The SWOT analysis allows analyzing the changes in the external environment in terms of Threats and Opportunities as well as the internal environment in terms of Strengths and Weaknesses. Once the identification of weaknesses and strengths has been achieved, together with the opportunities and threats presented by the environment, the combined analysis of both, expressed in a Matrix, can provide an adequate panorama within which to determine the most convenient decisions to achieve the objectives. of the company. The Matrix must contain:
The Opportunities are situations or factors socioeconomic, political or cultural factors that are out of control of the company, whose particularity is that they are feasible to be exploited if certain conditions are met.
| SWOT MATRIX | ||
| OPPORTUNITIES | THREATS | |
| STRENGTHS | Potentialities | Risks |
| WEAKNESSES | Challenges | Limitations |
The Threats are those external factors that are beyond the control of the company and could hurt and / or limit their development. Threats are events that occur in the environment that represent risks.
The strengths are human capacities and materials with which it has to adapt and take advantage of the full benefits offered by the social environment and cope with greater chance of success possible threats.
The weaknesses are the limitations or deficiencies of skills, knowledge, information and technology that are suffered and prevent the taking advantage of the opportunities that the social environment offers and that do not allow to defend against threats.
ANALYSIS OF THE CURRENT SITUATION-SWOT MATRIX- OF NATIONAL UNIVERSITIES
Internal Analysis Strengths:
a) Public entity with legal capacity and exclusively authorized to provide educational services and promote scientific research.
b) Leadership in the university educational service.
c) Experienced staff committed to the provision of university educational services. Leadership and direction by mandate of University Law, its Statute and its General Regulations.
Weaknesses
a) Little diffusion of the institutional task, generating ignorance and confusion on the part of the population.
b) A meager budget from the source of financing, ordinary resources, to provide educational services and scientific research.
c) Restricted human, logistical and budgetary resources to support the monitoring of educational and administrative activities.
d) There is a large part of the computer equipment that is not suitable for the operation of administrative systems.
e) The institutional infrastructure does not provide the safety and comfort conditions for the teaching and non-teaching workers.
f) Inadequate use of the physical spaces of the offices due to the use of old furniture.
g) The work-CAFAE incentive received by workers is one of the lowest in the public administration.
h) Low budget for the Institutional Training Program.
According to Terry (2004), efficiency is the positive result after adequate rationalization of resources, in accordance with the purpose sought by those responsible for management. According to the MAGU, efficiency refers to the relationship between the goods or services produced or delivered and the resources used for that purpose (productivity), compared to an established performance standard. Entities can guarantee their permanence in the market if they strive to carry out efficient business management, customer-oriented and with a sustained level of quality in the products and / or services it provides. Efficiency can be measured in terms of results divided by total costs and it is possible to say that efficiency has grown a certain percentage (%) per year.This measure of cost efficiency can also be inverted (total cost relative to the number of products) to obtain the unit cost of production. This ratio shows the production cost of each product. In the same way, the time (calculated, for example, in terms of man hours) that it takes to produce a product (the inverse of work efficiency) is a common measure of efficiency. Efficiency is the relationship between results in terms of goods, services and other results and the resources used to produce them. Empirically, there are two important measures: i) Cost efficiency, where results are related to costs, and, ii) work efficiency, where achievements refer to a key production factor: the number of workers.
According to Cashin, Neuwirth and Levy (2002), the effectiveness, refers to the degree to which the entity achieves its objectives and goals or other benefits that it intended to achieve, provided for in legislation or set by the Board of Directors. According to Hernández (2004), effective management is related to the fulfillment of the company's actions, policies, goals, objectives, mission and vision; as established by modern business management. According to the Informativo Caballero Bustamante (2005), effective management is the process undertaken by one or more people to coordinate the work activities of other people in order to achieve high-quality results that a person could not achieve on their own. Competitiveness comes into play in this framework, which is defined as the extent to which a company,Under free market conditions, it is capable of producing goods and services that pass the test of the markets, while maintaining or expanding the real incomes of its employees and partners. Also in this framework, quality is conceived, which is the totality of the features and characteristics of a product or service that refer to its capacity to satisfy expressed or implicit needs.When a management reaches the standard below, it can be considered "effective". According to Koontz & O`Donnell (2004), management can be considered effective if: i) The entity's operational objectives are being achieved; ii) They have adequate information to the point of achieving the entity's operational objectives; iii) If the administrative, financial, economic, labor, patrimonial and other information of the entity is reliably prepared; and, iv) If the applicable laws and regulations are complied with. While institutional management is a process, its effectiveness is a state or condition of the process at a given moment, the same as when exceeding the established standards it facilitates achieving effectiveness.
Terry (2004) and Stoner (2000), indicate that the determination of whether a management is effective or not and its influence on effectiveness, constitutes a subjective stance that results from the analysis of whether the five components of Internal Control of the Report: control environment, risk assessment, control activities, information and communication and supervision. The effective operation of management and control provides a reasonable degree of assurance that one or more of the stated goal categories will be met.
Efficiency is the normative measure of achieving results. The entities have indicators to measure the achievements of the services. When these results or standards are achieved, the objective of good governance applied by this type of entity will have been achieved.
According to Koontz & O´Donnell (2004), the managers of the institutions have a variety of techniques to ensure that the results conform to the plans. The basis of good governance and control of the entity is that the result depends on the people. Among the important considerations to ensure the results and therefore the effectiveness of the managers we have: the will to learn, the acceleration in the preparation of the management team, importance of planning for innovation, evaluation and remuneration of the management team, adjustments of the information, need for managerial research and development, need for intellectual leadership, etc. The results obtained by effective management should not only occur for the entity itself, but especially should be reflected in better services and in the citizen's content,especially in the participatory context of modern management.
According to Johnson & Scholes (2004), excellence must be achieved through a process of continuous improvement. Improvement, in all fields, of staff capacities, machinery efficiency, relations with the public, among members of the organization, with society. And as long as they come to mind, it can be improved in a company, and results in an improvement in the quality of the product. That is equivalent to the satisfaction that the consumer gets from their product or service. Technically, there can be two kinds of quality improvement. Through a technological advance, or through the improvement of the entire production process. When it comes to improving, it is better to focus on some aspects, without dispersing efforts.
It can and should be considered as one more type of process. And it is possible to apply several different quality enhancement procedures in the same time period. As long as the processes are independent. We can achieve this through department and segmentation. Coordinated by the same superior controls and supervision. In this way, the entire organization can be improved faster. But moderately and with caution, and without losing sight of the conditions foreseen for obtaining data. If it cannot be improved technologically, or does not have a reasonable cost, the only way to improve the product is through a continuous improvement system. Always try to improve results. Which brings with it a continuous dynamic of study, analysis, experiences and solutions,whose own dynamism results in a process of continuous improvement in customer satisfaction. Modernization and renovation processes. They must be taken within the system in a strategic way. Consider them in the longest foreseeable term that can be planned, according to the forecasts obtained from the analysis of the data. Continuous improvement, I understand as "improve tomorrow what you can improve today, but improve every day." Achieving the best results is not a day's work. It is a progressive process in which there can be no setbacks. The objectives of the organization have to be met, and prepare for the next higher requirements. So we will need to obtain a superior performance in our task and results of the organization as a whole. It is better to improve a little day by day, and take it as a habit,than leaving things as they are, having ups and downs. The worst is uneven performance. With these latter situations, the results of the organization cannot be predicted, because the data and information are not reliable or homogeneous. In conclusion, without continuous improvement a quality level cannot be guaranteed. Make sound decisions or meet goals and objectives.
Stoner (2000) and Terry (2004), are convinced that competitiveness is the ability of a public or private organization, profit or not, to systematically maintain comparative advantages that allow it to reach, sustain and improve a certain position in the socio-economic environment. The term competitiveness is widely used in business, political and socioeconomic circles in general. This is due to the broadening of the frame of reference of our economic agents who have gone from a self-protective attitude to a more open, expansive and proactive approach. Competitiveness has an impact on the way of planning and developing any business initiative, which is obviously causing an evolution in the company and businessman model. The comparative advantage of a company would be in its ability, resources,knowledge and attributes, etc., that the company has, the same that its competitors lack or that they have to a lesser extent that makes it possible to obtain higher returns than those. The use of these concepts supposes a continuous orientation towards the environment and a strategic attitude on the part of large companies as well as small, recently created or mature companies and in general in any kind of organization. On the other hand, the concept of competitiveness makes us think of the idea "excellence", that is, with characteristics of efficiency and effectiveness of the organization. Competitiveness is not the product of chance nor does it arise spontaneously;It is created and achieved through a long process of learning and negotiation by representative collective groups that configure the dynamics of organizational behavior, such as shareholders, managers, employees, creditors, clients, by competition and the market, and finally, the government and society in general. An organization, whatever its activity, if it wishes to maintain an adequate level of competitiveness in the long term, must use formal analysis and decision procedures sooner or later, within the framework of the "strategic planning" process. The function of this process is to systematize and coordinate all the efforts of the units that make up the organization aimed at maximizing overall efficiency. To better explain such efficiency, consider the levels of competitiveness,internal competitiveness and external competitiveness. Internal competitiveness refers to the organizational capacity to achieve the maximum performance from the available resources, such as personnel, capital, materials, ideas, etc., and the transformation processes. When talking about internal competitiveness comes the idea that the company must compete against itself, expressing its continuous effort to improve. External competitiveness is oriented to the elaboration of the achievements of the organization in the context of the market, or the sector to which it belongs. As the reference system or model is foreign to the company, it must consider exogenous variables, such as the degree of innovation, the dynamism of the industry, economic stability, to estimate its long-term competitiveness. The company,once it has reached a level of external competitiveness, it must prepare to maintain its future competitiveness, based on generating new ideas and products and seeking new market opportunities.
4.4.2. CONCEPTUAL FRAMEWORK
SWOT ANALYSIS:
The SWOT analysis is a tool that allows to form a picture of the current situation of the organization, allowing in this way to obtain an accurate diagnosis that allows to make decisions based on the objectives and policies formulated. The term SWOT is an acronym made up of the first letters of the words Strengths, Opportunities, Weaknesses and Threats (in English SWOT: Strenghts, Weaknesses, Oportunities, Threats). Among these four variables, both strengths and weaknesses are internal to the organization, making it possible to act directly on them. On the other hand, the opportunities and threats are external, making it generally very difficult to modify them.
Strengths: these are the special capabilities that the company has, and for which it has a privileged position against the competition. Resources that are controlled, capacities and abilities that are possessed, activities that are developed positively, etc.
Opportunities: are those factors that are positive, favorable, exploitable, that must be discovered in the environment in which the company operates, and that allow obtaining competitive advantages.
Weaknesses: are those factors that cause an unfavorable position against the competition. Resources that are lacking, skills that are not possessed, activities that are not developed positively, etc.
Threats: are those situations that come from the environment and that can even threaten the permanence of the organization.
ANALYSIS OF WEAKNESSES:
The Institutional Diagnosis (DI) is one of the first stages in achieving a modernization plan for public structures; as well as for the establishment of a Dashboard System. Its greatest contribution is that of being a supplier of inputs for the formulation of the consequent plan that seeks to alleviate the main weaknesses found, as well as exploiting the potential and synergies that can be traced throughout an institutional reengineering process.
MANAGEMENT OPTIMIZATION:
Optimization is a process. To be optimal, you must first be efficient, then effective, do things economically and work with transparency. When those responsible for management are concerned with doing things correctly, they are going through EFFICIENCY (adequate use of available resources) and when they use instruments to evaluate the achievement of results, to verify things well done, they are the ones that actually they had to be carried out, then it is directed towards EFFECTIVENESS (achievement of the objectives through the available resources) and when it seeks the best costs and greatest benefits it is within the framework of ECONOMY. Efficiency, effectiveness and economy do not always go hand in hand, since an entity can be efficient in its operations, but not effective, or vice versa;it can be inefficient in its operations and yet be effective, although it would be much more advantageous if efficiency were accompanied by efficiency. It can also happen that it is neither efficient nor effective
ECONOMY:
According to Johnson & Scholes (2004), the economy in the use of resources is related to the terms and conditions under which the entity acquires resources, be they financial, human, physical or technological (computerized), obtaining the required amount, at the reasonable level of quality, at the appropriate time and place and at the lowest possible cost. The economic treatment of operations provide useful guidance for profit planning, cost control, and administrative decision-making should not be considered as a precision instrument since the data is based on certain assumed conditions that limit the results. The economical nature of operations is developed under the assumption that the concept of cost variability (fixed and variable) is valid, and these components can be identified,including semi-variable costs; The latter through technical procedures that require a special analysis of historical income and cost data for various successive periods, in order to determine fixed and variable costs.
TRANSPARENCY:
Osorio (2005), Tuesta (2004) and the CGR (2006-B), agree that transparency means the duty of the authorities to carry out their actions publicly, as a mechanism for controlling power and democratic legitimacy of institutions public. Transparency means letting light easily pass, in government terms, transparency is a quality that allows the adequate and sufficient flow of information and could be considered an antidote to curb corruption, to counteract any type of suspicion or suspicion of a certain dependency. or public body. Transparency is an environment of trust, security and openness between the government and society, in such a way that responsibilities, procedures and rules are established,they perform and report clearly and are open to public participation and scrutiny. Transparency is also a sensible, responsible and participatory citizenry, that in the knowledge of its rights and obligations, collaborates in promoting integrity and fighting corruption.
Attention and Services Capacity.
This includes all aspects related to the production process of public goods and services, as well as the necessary infrastructure for the development of the key processes of the organization related to the attention of the user public. Consideration must be given to the capacity for handling procedures, and the provision of public services, as well as the capacity to improve processes.
Capacity to Develop Institutionality.
Abilities to compromise the will and action of the people and organizations of the Society in the territorial area, to work together for their integral development, promoting consensus and cohesion. The constitution and development of regional institutions, and of organizational and interaction systems and social cooperation are important, helping to strengthen and even create social capital. Capacities to establish a leadership capable of processing conflicts, identify and articulate interests and establish alliances with elements of organizations and civil society.
Ability to formulate plans, projects and secure their financing.
Capabilities to project into the future and execute in the present. It includes the formulation of plans, projects, budget management, project financing, spending capacity, obtaining external resources that can be mobilized, capacity to generate own resources, etc.
Government and Management Capacity.
Everything that has to do with the levels, experience and potential of political authorities and regional public management. Management skills, decision making, coordination, communications, control, etc. The aspects related to the capacities for the fulfillment of the government purposes, the supervision and regulation in the assigned political scopes, the strategic implementation oriented to the fulfillment of the institutional faculties, etc.
Ability to incorporate modern technologies.
It includes the technological platform, the technology of the production processes of goods and services, systems and applications, access to support services, physical facilities, intensity in the use of technology, level of innovations, applications and availability of Software, administrative procedures, technical procedures, etc. Efforts and capacities to implement Electronic Government processes.
Position.
It is the basic element of an organization. It is derived from the classification foreseen in the CAP according to the nature of the functions and level of responsibility that merit the fulfillment of requirements and qualifications for its coverage. The Basic Cell of an Organization is called a Charge, characterized by a set of Tasks aimed at achieving an objective. The performance of the position requires the employment of a person who must have a minimum of qualifications according to the type of functions and attributions of the Position.
Staff Assignment Chart (CAP).
Management document containing the positions classified based on the organic structure provided in its Organization and Functions Regulation (ROF) and the objectives and goals established in its Strategic Plan.
Weaknesses.
They are the limitations or deficiencies of skills, knowledge, information and technology that the Regional Government presents and that prevent the taking advantage of the opportunities offered by the social environment.
Territorial development.
The concept is a unifying category that allows defining a "territory-project" and that includes an integrated development strategy adopted by a specific population based on:
i) a shared productive vocation (comparative advantages)
ii) a common cultural identity
iii) a prospective potential that generates synergies, cohesions and linked links.
Situational diagnostic.
It is a structured, reflective and critical knowledge construction process that aims to understand, analyze, interpret and transform the facts of a certain process or situation of the social. Consultancy stage in which the current situation of an organization, group or person is described. Refers to the analysis of past, present and future projection data for the strategic planning process.
Competency Approach.
It is one that studies the observable behaviors of people and practices of institutional groups that carry out their work effectively and efficiently. The focus on competencies, by focusing on observable behaviors and not on the person's underlying traits, facilitates the use of more objective, operational and shared concepts in the organization. Consequently, it becomes more feasible to establish the profiles of requirements and objectively define the observable behaviors and required results.
Coverage expansion strategy.
In terms of activity, the expansion of regional government capacities will be sought to cover undeveloped territorial or functional areas, establish the presence of the State, the development of service networks, economies of scale, and basically enter a phase that I guarantee them a certain dynamic stability. Expanding coverage does not necessarily require expanding the number of personnel. The greatest coverage can come from concentrating your activities on priority activities or on expansion through networks of public and non-public partners.
Drag strategies:
a) Islands of excellence, refers to starting the process of change from focused areas where all the effort of modernization and excellence must be concentrated so that they serve as examples and later expand their results to other areas. b) Locomotives of change, refers to an area of the organization that drives modernization and change and serves as a reference to the others. c) Citizen oversight, refers to the systematic incorporation of the presence of citizens in the oversight of public administration.
Concentration strategy.
The consequences of this strategy translate into the need for the regional government to focus on its substantive functions, strengthening itself for everything that is not substantive in alliances with public, social or private partners. The consequence will be the reduction of its structures and the targeting of the use of its resources. This strategy is perfectly compatible with the previous one, since concentration allows you to expand your attention in priority activities. It is likely that they will seek to operate in networks by outsourcing or outsourcing part of their activities and concentrating on basic and essential skills and services.
Innovation and quality strategy.
The innovation strategy can be used by the regional government to develop new and quality services or substantially improve existing ones. The objective is to offer new and different solutions to the traditional, solving problems through new ways and methods. In principle, flexibility in its structures, as well as the integration of its resources, will be two basic aspects that will enable the formulation of this strategy. Generally in these cases the technology and the implementation of what is called electronic government is important.
Cost reduction strategy.
The cost reduction strategy is normally based on the use of strong controls, the minimization of general expenses and the search for economies of scale, all with the goal of expanding services, improving the quality of spending and implementing of austerity mechanisms. Cost reduction seeks to eliminate everything that is unnecessary and can use savings to expand service coverage or investments in its technological modernization.
Strengths.
They are the capacities we have, the resources we have. They are the aspects in which we are strong. Strengths are the human and material capacities that the regional government has to adapt and take full advantage of the advantages offered by the social environment and meet its objectives.
The analysis of our strengths leads us to determine objectives for taking advantage of our potential.
Function.
Set of related and coordinated actions that correspond to the entity, its organs and organic units to achieve its objectives.
Personnel management.
It is a process that consists of carrying out activities aimed at the development of people within the framework of the aims and objectives of an organization. It comprises a set of technical processes that seek to generate value for users through the appropriate work of people.
Methodological guide.
Document that contains guidelines on the basic procedures and concepts related to the PLAN. Set the sequences, tools, and matrices to use.
Indicators.
They are qualitative and quantitative parameters that detail the extent to which a given objective has been appropriately met.
Human development Index.
The Human Development Index (HDI) is a measurement by country, prepared for the United Nations Development Program (UNDP). It is based on a statistical social indicator made up of three parameters:
§ Long and healthy life (measured according to life expectancy at birth)
§ Education (measured by the adult literacy rate and the combined gross enrollment rate in primary, secondary and tertiary education)
§ Decent standard of living (measured by GDP per capita in USD)
Organization and Functions Manual (MOF).
Normative document that describes the specific functions at the position or job level, developing them based on the organic structure and general functions established in the Organization and Functions Regulations, as well as based on the requirements of positions considered in the Assignment Table of Personal.
Goals.
It is a quantifiable result that we want to achieve in a period of time. Understand: What we want to do. How much should we do. In what time should we do it. If possible, of what quality we expect the result.
Goals.
A goal refers to a generally qualitative result that is desired or needed to be achieved within a specified period of time. It is a value aspired within an organization. Represents, an unfolding, a specific part of a fundamental purpose (in our case the vision) and defines in a concrete way this or a part of it. The objectives are expressed in qualitative terms. Goals must be clear, realistic, challenging, measurable, and consistent with each other.
Prioritization of Goals.
It is the process of selection of the Goals through criteria, which allow us to identify those that are more critical or of greater importance.
Institutional and Management Capacity Development Plan.
Document that aims to ensure that the Regional Government plans actions to strengthen institutional and management capacities related to sectoral functions that will be the subject of transfer from the National Government. It must be fundamentally oriented to improve the institutional and management capacity of the sectoral competences and functions that will be transferred to the regional governments.
It must be prepared by the Regional Government seeking consensus with the sectoral agencies involved in its corresponding territorial area.
Square.
It is the budget allocation that is considered for the remuneration of permanent or eventual personnel. The place duly foreseen in the institutional budget allows the positions contemplated in the CAP to be enabled. The positions are considered in the analytical personnel budget.
Procedure.
Sequence of actions and activities concatenated with each other, which ordered in a logical way allow to fulfill a specific predetermined purpose or objective. The procedure has a beginning, develops a set of activities, and has a term or result. In a procedure, each action or activity is justified to the extent that it contributes "added value" to the service or final product that must be delivered to customers or users.
Administrative procedure.
Set of acts and procedures processed in entities, leading to the issuance of an administrative act that produces individual or individualizable legal effects on interests, obligations or rights of the managed.
Sectoral Functions Transfer Process.
It refers to the decentralization process that must be carried out in stages, in a progressive and orderly manner, in accordance with criteria that allow an adequate and clear allocation of powers from the National Government to regional and local governments, whose regulations require the preparation of transfer plans..
The transfer process requires accreditation of management capacities by regional and local governments to take over the transferred competencies and functions. For this, the regional governments must sign cooperation agreements with the sectors in order to design and commit training programs as well as technical assistance that make it possible to acquire and strengthen management capacities, in order to successfully pass the accreditation process.
Analytical Personnel Budget.
Management document that considers the positions and the budget for the specific services of permanent and temporary staff depending on budget availability.
Organization and Functions Regulation (ROF).
Institutional management normative technical document that establishes:
· The organic structure of the entity.
· The general and specific functions of the entity and each of its organs and organic units.
· The coordination and control relationships between organs, organic units and entities when appropriate.
4.5. JUSTIFICATION AND IMPORTANCE OF WORK
4.5.1. JUSTIFICATION
4.5.1.1. THEORETICAL JUSTIFICATION
Today more than ever, the relevance of the case is being given to the control of institutions, because it is essential that it work well to facilitate the effectiveness of institutional governance. Controls are implemented in order to detect, within the desired period, any deviation from the objectives established by the entity and to limit surprises.
Controls promote the efficiency, effectiveness and economy of resources, reduce the risk of loss of value of assets and help to ensure the reliability of financial statements and compliance with current laws and legal regulations, therefore they must be supported at the highest institutional level.
Control encompasses the factors of the control environment, which includes the integrity of the staff, ethical values, the capacity of the entity's workers, the philosophy of management, the style of management, the way in which management assigns authority and responsibilities and professionally organizes and develops its workers and the care and guidance provided by the institutional decision-making body.
Entities face various external and internal risks that have to be evaluated. A precondition to risk assessment is the identification of objectives at different levels, linked to each other and internally consistent. Internal control evaluates and determines the internal and external risks of the entity, therefore its observations, observations and recommendations must be taken into account because they are facilitators of good institutional governance.
Resource management needs control activities, that is, policies and procedures that help ensure that the instructions of the institutional decision-making body are carried out. They help to ensure that the necessary measures are taken to control the risks related to the achievement of institutional objectives. There must be control activities, at all levels and in all functions. It should include a range of activities as diverse as approvals, authorizations, verifications, reconciliations, reviews, safeguarding of assets, segregation of duties and others.
In the framework of institutional management, it is essential to plan and apply control actions in the permanent and continuous process in order to determine, measure and / or check if the resources have been executed in accordance with the plan and achieved the programmed objectives; if the necessary corrective measures were not taken.
This vital function of checking plans and compliance with laws and regulations, must be carried out through prior, simultaneous control actions and subsequent verification, so that it allows with efficiency, effectiveness, economy and in accordance with reality, a transparent evaluation in benefit of the entity and the community it serves.
The modern control perspective will ensure that the current policies and procedures are adapted to the needs of modern institutional management. It will also enable the fidelity and timeliness of the reports submitted, so that the most accurate decisions can be made. It also ensures adequate monitoring to verify if the management and control policies are obeyed.
The modern perspective of control will be carried out without interfering or suspending the exercise of the functions and activities of the entity's dependencies. Consequently, its function will be to analyze the fulfillment of goals, objectives, mission and vision; as well as informing or recommending the establishment of standards that can improve control.
In this way, the modern perspective of control will be carried out to detect, within the desired period, any deviation from the objectives of, efficiency, effectiveness and economy in the use of institutional resources established by the State and to limit surprises. Such a control system will allow to face the rapid evolution of the economic, social and competitive environment, as well as the changing demands and priorities of citizens and adapt its structure to ensure future growth.
Control fosters efficiency, effectiveness and economy; reduces the risk of loss of asset value and helps ensure proper management of resources, the reliability of financial information and compliance with current regulations.
Because internal control is useful for achieving many important objectives, there is an increasing demand for a better control system.
4.5.1.2. METHODOLOGICAL JUSTIFICATION
The investigation starts from the existing problem in the control. On this situation, he presents theoretical approaches and experiences on the subject, with the purpose of solving said problem.
This work will describe the weaknesses of the control; Then it will explain how to turn them into strengths to have an efficient, effective and facilitating control of public management.
4.5.1.3. PRACTICAL JUSTIFICATION
The conversion of control weaknesses into strengths will have positive consequences for public management that needs efficient and effective control.
4.5.2. IMPORTANCE OF WORK
The importance of the work is given by the side that allows to collect theoretical pronouncements of all levels to be able to apply it to the conversion of the weaknesses of internal control into strengths and to have an efficient and effective control, facilitating public management.
Likewise, due to the fact that it allows collecting the experiences of the entities and giving our professional contributions, as a way of collaborating with good public management.
V. OBJECTIVES
5.1. MAIN GOAL
Define how control can be able to analyze and convert weaknesses into strengths and contribute effectively to continuous improvement and institutional competitiveness.
5.2. SPECIFIC OBJECTIVES:
1. Determine the optimal environment for the institutional control system so that it can facilitate the efficiency and effectiveness of public management
2. Determine the components of the control system to facilitate continuous improvement and competitiveness in the framework of the public management process.
SAW. HYPOTHESIS FORMULATION
6.1. MAIN HYPOTHESIS
If control is capable of converting weaknesses into strengths; Then it will effectively contribute to continuous improvement and institutional competitiveness.
6.2. SPECIFIC HYPOTHESES
- If the institutional control system has an adequate environment; Then it will facilitate the efficiency and effectiveness of public management.
- If the components of the control system establish adequate synergy; Then continuous improvement and competitiveness will be facilitated within the framework of the public management process.
6.3. VARIABLES AND INDICATORS
1) Independent Variable:
X. Control in the framework of the public management process
Indicators:
X.1. Public Management
X.2. Institutional control
2) Dependent Variable:
Y. Analysis and conversion of weaknesses into strengths.
Indicators:
Y.1. Efficiency and effectiveness
Y.2. Continuous improvement and competitiveness
VII. METHODOLOGY
7.1. KIND OF INVESTIGATION
This research will be of the applied type, since all aspects are theorized, although its scope will be practical to the extent that they are taken into account by public management.
7.2. INVESTIGATION LEVEL
The research to be carried out will be at the descriptive-explanatory level, since internal control will be described in all its aspects; highlighting the weaknesses and will explain how to turn them into strengths to make control an efficient, effective and facilitating activity of continuous improvement and institutional competitiveness.
7.3. INVESTIGATION METHODS
The following methods will be used in this investigation:
1) Descriptive.- Because all aspects of control will be described within the framework of public management; emphasizing the conversion of weaknesses into strengths.
2) Inductive.- To infer the information of the sample in the research population.
7.4. DESIGN OF THE INVESTIGATION
This work includes the methodological approach and theoretical approach of the investigation.
The methodological approach highlights the formulation of research problems, objectives and hypotheses.
In the theoretical approach, the development of the variables and indicators of the research in relation to the problems, objectives and hypotheses formulated stands out.
At the end of the research work, first the specific objectives will be contrasted with the general objective of the research.
The contrasted specific objectives will be the basis for issuing the partial conclusions of the investigation.
The partial conclusions will be the basis for issuing the general conclusion of the work.
Finally, an interrelation will be established between the general objective and the general conclusion until the general hypothesis of the investigation is contrasted.
7.5. POPULATION OF THE INVESTIGATION
The research population is made up of the authorities, officials, teachers, workers and students of national universities.
7.6. INVESTIGATION SAMPLE
The sample for this work will be made up of the authorities, officials, teachers, non-teachers and students of the Federico Villarreal and San Marcos Universities. To define the sample size, the probabilistic method has been used and the statistical formula for populations less than 100,000 has been applied.
Where:
| n | It is the size of the sample to be taken into account for the field work. It is the variable that you want to determine. |
| P and q | They represent the probability of the population to be included or not in the sample. According to the doctrine, when this probability is not known from statistical studies, it is assumed that p and q have a value of 0.5 each. |
| Z | Represents the standard deviation units that in the normal curve define an error probability = 0.05, which is equivalent to a 95% confidence interval in the sample estimate, therefore the Z value = 1.96 |
| N | The total population. This case 620 people considering those people who have elements to answer for the research topics to be carried out. |
| EE | Represents the standard error of the estimate, according to the doctrine, it must be 0.09 or less. In this case 0.09 has been taken |
Substituting:
n = (0.5 x 0.5 x (1.96) 2 x 620) / (((0.09) 2 x 619) + (0.5 x 0.5 x (1.96) 2))
n = 100
STRATIFICATION OF THE SAMPLE OF THE INVESTIGATION:
| Institutions | AUT. | FUN | DOC | TRA | ITS T. | TOT. |
| UNFV | 3 | 10 | 10 | twenty | 7 | fifty |
| UNMSM | 3 | 10 | 10 | twenty | 7 | fifty |
| TOTAL | 06 | twenty | twenty | 40 | 14 | 100 |
NOTE:
AUT: Authorities; FUN: Officials; DOC: Teachers; TRA: Non-teaching workers; EST: Students.
7.7. DATA COLLECTION TECHNIQUES
The techniques that will be used in the investigation will be the following:
1) Surveys.- It will be applied to obtain information on the research topics.
2) Documentary analysis.- It will be used to analyze the norms, bibliographic information and other aspects related to the investigation.
7.8 DATA COLLECTION INSTRUMENTS.
The instruments that will be used in the investigation are the following: questionnaire and document analysis guide. The questionnaire will be used to carry out the survey. The documentary analysis guide is applied to organize and define the theories that will be taken into account for the theoretical framework of the research.
7.8. ANALYSIS TECHNIQUES
The following techniques will be applied:
- Documentary analysis Inquiry Data reconciliation
· Tabulation of tables with quantities and percentages
- Graphics understanding
7.9. DATA PROCESSING TECHNIQUES
The following data processing techniques will be applied:
- Sorting and classification Manual registration Computerized process with Excel Computerized process with SPSS
VIII. SCHEDULE
| ACTIVITIES | FEB | SEA | APR | MAY | JUN | JUL | AUG |
| THESIS PLAN: | |||||||
| Data collection | X | ||||||
| Formulation | X | ||||||
| Presentation | X | ||||||
| Approval | X | ||||||
| THESIS: | |||||||
| Data collection | X | X | X | X | |||
| Organization of info. | X | X | X | ||||
| Information processing | X | X | |||||
| Thesis writing | X | ||||||
| Presentation | X | ||||||
| Lift | X | ||||||
| Approval | X |
IX. BUDGET
| EXPENSE BUDGET | |||||
| ITEMS | QUANTITY | UNIT | UNIT PRICE | SUBTOTAL | TOTAL ITEM |
| I. ASSETS: | 770.00 | ||||
| Goods | 4 | THOUSAND | 25 | 100.00 | |
| Pencils | 5 | DOZENS | 10 | 50.00 | |
| Computer ink | 10 | UNITS | 30 | 300.00 | |
| Floppy | 3 | DOZEN | twenty | 60.00 | |
| CD | one | DOZEN | 60 | 60.00 | |
| Other assets | 200.00 | ||||
| II. SERVICES | 3,480.00 | ||||
| I support statistical work | 1,000.00 | ||||
| Secretarial support | 1,000.00 | ||||
| Mobility | 300.00 | ||||
| Viaticals | 500.00 | ||||
| Telephone | 200.00 | ||||
| Prints | 180.00 | ||||
| Photocopies | 100.00 | ||||
| Various | 200.00 | ||||
| TOTAL | 4,250.00 | ||||
| INCOME BUDGETS | ||
| Own resources | 4,250.00 | |
| Donations | 0000.00 | |
| Other sources | 0000.00 | |
| Total | 4,250.00 |
X. BIBLIOGRAPHY
1. Aldave U., Juan H. & Meniz Roque, Julio (2005) Audit and government control. Lime. Bernilla Graphic Editor.
2. Cashin, JA, Neuwirth PD and Levy JF (2002) Audit Manual. Madrid: Mc. Graw-Hill Inc.
3. Comptroller General of the Republic. (2006) Government Audit Manual. Lime. www.contraloria.gob.pe
4. Comptroller General of the Republic. (2006) Government Auditing Standards. Lime. www.contraloria.gob.pe
5. Comptroller General of the Republic. (2006) Internal control standards for state entities. Lima.www.contraloria.gob.pe
6. Elorreaga Montenegro, Gorostiaga. (2002). Internal Audit Course. Chiclayo- Peru. Editing by the author.
7. International Federation of Accountants- IFAC - (2005) International Auditing Standards. Lime. Edited by the Federation of Colleges of Accountants of Peru.
8. Hernández R, Fernando. (2004) The operational audit. Lima: Editorial San Marcos SA.
9. Informative Caballero Bustamante (Informative Audit). (2005). Internal control. Lime. Editorial Tinco SA.
10. Institute of Internal Auditors of Spain- Coopers & Lybrand, SA. (2004). The new concepts of internal control- COSO Report- Madrid. Ediciones Díaz de Santos SA.
11. Institute of Internal Auditors of Peru. (2005). The new framework for the professional practice of internal audit and code of ethics. Lime. Edition by The Institute of Internal Auditors.
12. INTOSAI (1990) Code of Ethics and Auditing Standards. Stockholm. Auditing Standards Committee
13. INTOSAI (1994) Guide for internal control standards in the public sector. Budapest. Standards Committee.
14. Johnson Gerry and Scholes, Kevan. (2004) Strategic Management. Madrid: Prentice May International Ltd.
15. Koontz / O'Donnell (2004) Modern Administration Course- An analysis of systems and contingencies of administrative functions. Mexico. Lithographic Ingramex SA
16. Leturia Podestá, Carlos (2004) Cost-Volume-Profitability. Lime. Editing by the author.
17. Osorio Sánchez Israel (2005) Audit 1: Fundamentals of Auditing of Financial Statements. Lime. ECAFSA.
18. Panéz Meza Julio. (2004) Contemporary Audit. Lima: Iberoamericana de Editores SA.
19. Pérez-Carballo Veiga, Juan F (2007) Control of Business Management - Texts and Cases. Madrid. Higher School of Commercial Management and Marketing.
20. Stoner Freeman, Gilbert (2000) Administration. Mexico. Prentice Hall.
21. Terry George (2004) Principles of Management. Mexico. Continental publishing company. SA-
22. Tuesta Riquelme, Yolanda. (2004). "The ABC of Government Auditing". Volume I. Lima. Iberoamericana de Editores SA.
23. Uceda Arcas, José Luis (2007) Business management-Analysis and control. Madrid. Editorial Diaz de Santos.
24. Ancash National University and Institute of Management Development. (2005). Management and quality in control systems. Lime. Edition by the two entities.
WEBSITES
1. www.mef.gob.pe
2. www.minjus.gob.pe
3. www.cgr.gob.pe
4. www.ccpl.org.pe
5. www.caballerobustamante.org.pe
6. www.actualidadempresarial.org.pe
7. www.unfv.edu.pe
8. www.usmp.edu.pe
9. www.snmsm.edu.pe
10. www.uigv.edu.pe
11. www.ulima.edu.pe
12. www.ucatolica.edu.pe
13. www.upacifico.edu.pe
Ancash National University (UNA); Management Development Institute (IDG)
Government Audit Manual. Published by the Comptroller General of the Republic.
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