Introduction
The implementation of internal control implies that each of its components are applied to each essential category of the company, becoming a permanently integrated and dynamic process, as a preliminary step, each entity must establish the objectives, policies and strategies related to each other in order to to guarantee the organizational development and the fulfillment of the goals.
Although the internal control system must be intrinsic to the administration of the entity and seeks to make it more flexible and competitive in the market, there are certain inherent limitations that prevent the system as such to be 100% reliable and where a small percentage fits 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 wrong decision making, simple mistakes or conspiracies 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 assignment of well-defined responsibilities where they interrelate with each other so that the chain of control is not broken, strengthening the environment. of its application, each person is a link that guarantees the efficiency and effectiveness of the chain to a certain extent.
It should be noted that the main responsibility in the application of internal control in the organization must always be in the head of the administration or senior management so that there is a real commitment at all levels of the company with the adequate evaluation or independent supervision of the system in order to guarantee the update, efficiency and existence over time. These evaluations can be continuous or punctual, without having a predetermined or fixed frequency. Likewise, it is 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 They can affect the development or application of policies depending on the achievement of the objectives for their correct evaluation.
The understanding of internal control can thus help any entity to obtain significant achievements in its performance with efficiency, effectiveness and economy, indispensable indicators for the analysis, decision making and fulfillment of goals, that is why it is necessary to adapt the design of the system of internal control to the particularity of each organization.
Development
It would be complex to think about how to carry out the evaluation of the internal control system (ICS) of an entity that allows to enhance the process of improving it, in order to achieve the efficiency of the operations that are generated and the discipline of its workers. To structure the ICS, it is necessary to integrate the concept of Internal Control from its five components into the functional structure of the entity.
The conception of internal control is based on its systemic nature, where the functional logic of its components is followed, which are dynamized in the relationships established between them and compliance with the standards that support it, establishing themselves as regularities:
The relationship between the components of internal control determines its functional structure in correspondence with the operation of the different processes that are developed in the entity. Compliance with the standards of each of the components allows determining the deficiencies that arise in the operation of the internal processes of the entity and the commitment of the management and the rest of the personnel in the development of their activity. In this complex process, the conditions presented by the entity play a decisive role. The characteristics that identify it and make it different from its counterparts. The operational, functional and organizational structure of each of its processes and activities that are combined with the results and their quality. The institutional values and the social and moral commitment of the human resources that are developed in it. The relevance of its processes, the social impact and the optimization of the resources with which it operates. All this determines that the entity acquires a unique personality and therefore its structuring, organization, functionality and evaluation of each of the processes that it develops, acquire particular qualities, which require from the work mechanisms, meaning and specific meaning that differentiate it from the rest.
Objective and scope of the internal control system
The Internal Control System in the INPUD company is aimed at knowing how the entity is doing and how to improve its management, to minimize or eliminate the Risks determined in each area, considering the threats to meet the Objectives in:
- Functional Operations In the Safety and Health of the Company's workers, also taking into account the risk analysis and the indications of safe operation in the services that are performed Environmental of the Company's operations Disaster reduction due to the occurrence of natural events or accidents, elimination of crime, illegalities and manifestations of corruption.
In the company, the processes and their interrelation are identified, seeking effectiveness and efficiency in the entity.
To achieve the implementation and maintenance of the internal control system in our company, we drew up a work schedule by components which was complied with and allowed us to maintain constant work in the search for continuous improvement of the system.
Component evaluation
1. Control environment
In the company there is an adequate control environment where an effective organizational structure prevails, healthy administration policies and laws and policies are generally consistent and compromised in its Management Systems.
The requirements of the clients are kept identified, seeking their growing satisfaction and providing safety and protection to the environment, in the scope of our work activity and the Services, within the framework of the Laws, Rules and regulations.
The Strategic Projection of the Company is evidenced in its Vision, in its decision to increase its competence to facilitate and assimilate New Technologies, which improve its efficiency and enable a clean and sustainable operation, ensuring a superior future.
We have a Legal File of the Entity where the Resolutions of Appointment of the leaders and officials, of the Collective Bodies of Management, the Internal Disciplinary Regulation, the Collective Labor Agreement and the Licenses that authorize us to carry out the sales, that of operate in currencies and banking in both CUC and MN.
The entity has designed a group of procedures and regulations that allow a better organization when executing its management activities and at the same time allow monitoring of compliance with the provisions.
2. Risk Assessment
The objectives, the threats, the risks that may affect, the risk rating, the preventive measures, the person responsible for checking these measures and the periodicity with which they should be controlled are defined.
There is a Risk Prevention Plan by areas, which includes measures to control, supervise and evaluate the effectiveness and whose main objectives are the following:
Objectives of the Prevention Plan
- Involve administrative directors and labor groups in the identification of vulnerable points, negative manifestations and actions to prevent them Make the prevention plan a working tool to achieve compliance with the objectives and goals set Consolidate the levels achieved National and International Certification of the Quality Management System in all the Services provided by the Company Guarantee the development of the Company's operations by complying with Maximum Security measures Continue with the purposes of continuous improvement of processes, the professional performance of the workers and the Integrated Management System of the Company.
3. Control Activities
The Control Activities are carried out based on the actions aimed at fulfilling the strategic projections, the objectives of the year, the main tasks of each quarter, and the efficiency indicators of each worker.
The strategic projections include their analysis and compliance with the issues of the Company's Board of Directors, involving them in such a way that it is analyzed in each Board and the provisions are fulfilled.
The main activities to be carried out by the Company in the year are defined in the Work Objectives, these are taken into consideration and discussed in the Boards of Directors. In addition, control activities are planned on a monthly basis that allow evaluating the real status of each activity, there are others that due to their characteristics are carried out in a surprising way to verify compliance with current legislation and administrative responsibilities as well as compliance with the measures internal control implemented in the entity.
There is the planning of the self-control day that is oriented at the ministerial level, deciding the activity to be controlled and the entity issues within a term of 72 hours the results and the action plan to resolve the deficiencies detected.
4. Information and Communication
The Information and Communication in the Company are designed so that there is feedback of the information from the managers to the workers and vice versa, with Collective Management Bodies that allow the exchange in the following ways:
The Board of Directors meets once a month and members participate, which also includes some workers and factors.
The Meeting with the factors is held once a week, it acts as a feedback from the management to the factors and vice versa. All meetings are chaired by the Director General, who transmits his ideas and decisions to the members of these Bodies.
The information, debates, analyzes, agreements, projections that come out of them are transmitted by the managers to the workers in each of their areas through the morning sessions and the affiliate assemblies.
The Administration renders an account of the operations of the Company before the workers in the Union Assemblies and the morning assemblies where the information is transmitted for the debate.
The Murals allow communication with the workers, both internal and external news are developed, appointments are made to meetings, etc. These are found in each area and are visible to all.
The Extended Board of Directors is held quarterly and the members of the board of directors, the general secretaries of the union sections, the general secretaries of the PCC nuclei, the secretary of the base committees of the UJC and other guests that are necessary participate, analyzing the Economic Balance to give a vision to the workers of the management of the Company.
The workers can exchange with the management in the tours that it makes through the areas and in the offices that are conceived once a week so that the Director meets with the workers and in the Assemblies that opinions, ideas etc. can be given.
All the areas of the Company are in constant interrelation in these work meetings and from the place of each one of them, existing constant and effective exchange through the means explained above and others that are related to the performance of their own job.
5. Supervision and Monitoring
Supervision and Monitoring is carried out through the performance of an Internal Audit Program that is carried out annually, which defines the objectives and the Audit Program for the different Management Systems and with specified dates.
The actions of supervising and monitoring always bring with them a Plan of measures that help the Company to comply with all the observations detected that mention corrections during the audit, the check being carried out through a Continuous Improvement Plan.
The Audit Program planned in the year is executed by the Group of own Auditors and the System Supervisors.
In the Company there is a Control Committee that has the following functions:
Ensure the proper functioning of the Internal Control System and its continuous improvement.
Organize and participate in the preparation and updating of the Plan of measures for the Prevention, Detection, and Confrontation of Indisciplines, Illegalities and manifestations of Corruption. "Prevention Plan" of the entity and its subsequent monitoring and control.
Know and examine common criminal acts, indisciplinary manifestations of corruption that arise, relating to the actions contained in the Prevention Plans and disseminating the results of the analysis, determining the causes and conditions and transmitting the lesson and the alert to the entire system.
Know and analyze the results of Government Controls, Fiscal Verifications, Audits and other control actions carried out to the entity.
Carry out internal control actions, such as inspections of the different areas of the entity, physical counts, etc., and other actions to strengthen socialist legality.
Conclusions
- Internal Control is an extremely important tool to safeguard and protect aspects of a financial, economic nature, etc. Because its proper use brings with it that a due order remains in the entities in accordance with what is established by the pertinent resolutions in each national territory for the entities.The use of Internal Control in the entities allows the illegalities and corruption within the entities to be greatly reduced. of the labor framework, since it forces each element of the organization to be controlled by the relevant person.
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