Analyzing Valdivia (2010); The International Public Sector Accounting Standards (IAS-SP) are a set of standards or laws that establish the information that must be presented in the financial statements of the non-financial public sector and the way in which that information must appear, in said statements. The International Public Sector Accounting Standards are not natural or physical laws that awaited their discovery, but rather standards that man, according to his commercial and financial experiences, continues to believe that this is true and has considered important in the presentation of financial information.
They are high-quality government accounting standards, whose objective is to reflect the economic essence of the operations of public entities, and to present a true picture of the financial situation of said entities. The International Public Sector Accounting Standards are the security to have reliable, trustworthy, reliable financial, economic, patrimonial and even budgetary information.
Analyzing Flores (2011); In the framework of modern public management, International Accounting Standards for the non-financial public sector are becoming more essential; In this regard, the strengthening of regional governments leads to greater independence in the management of their budget, since they are more empowered to obtain their income and invest them in the plans established in their government programs. But they are not isolated, they all form an interrelated structure; Hence the need to have tools to achieve greater cooperation between them, such as having information that serves as guidance on each of the economic activities of the entities involved,to facilitate decision-making and allow an efficient process of accountability that citizens demand from their authorities. New technological advances have modernized people's lives, who are more aware of their role in society, which is why they demand from the government more information about their activities. Now there is a true social demand on the publicity of government actions, requiring transparent information, faithful to economic reality to know the work of the rulers, in order to prevent irregularities, abuses and even fraud, exercising the citizenship of some he forms a type of control over the performance of his chosen ones.for which they demand from the government more information about their activities. Now there is a true social demand on the publicity of government actions, requiring transparent information, faithful to economic reality to know the work of the rulers, in order to prevent irregularities, abuses and even fraud, exercising the citizenship of some he forms a type of control over the performance of his chosen ones.for which they demand from the government more information about their activities. Now there is a true social demand on the publicity of government actions, requiring transparent information, faithful to economic reality to know the work of the rulers, in order to prevent irregularities, abuses and even fraud, exercising the citizenship of some he forms a type of control over the performance of his chosen ones.exercising citizenship in some way a type of control over the performance of their chosen.exercising citizenship in some way a type of control over the performance of their chosen.
At the national level, the process of comparability of information from different public entities is not so time consuming because we somehow have guidelines that indicate how to present it. Public accounting in our country is in charge of accounting for the operations of the government and the individuals who are in charge of the administration of public resources. Its purpose «is to provide, in a timely manner, the financial, economic and social information that comes from the use of public resources when the plans, programs, projects and activities are executed, so that correct, efficient, effective and economic decisions can be made., in accordance with the principles of the administrative function in pursuit of the aims and purposes of the State. "
Chapi (2010); points out that internationally there are two highly recognized institutions that regulate government accounting such as: the International Federation of Accountants, in charge of issuing accounting guidelines for the public sector, and the International Monetary Fund, which seeks integrated financial resource management systems. Several Latin American countries have received financial and technical support from different international organizations, through various programs that seek to collaborate in their economic development. But one of the requirements that these organizations impose to finance government projects is to render an account in a precise and timely manner, through minimum standards regarding the accounting system that the beneficiary countries must comply with.
The need for the existence of international accounting standards for the public sector is highlighted, to allow homogeneity of accounting practices and thus achieve comparability of the information issued by government entities. Due to the great diversity of accounting practices of governments and other public sector entities for the presentation of their financial information, the IFAC (Council of the International Federation of Accountants) through its Public Sector committee has considered these needs in matters financial, accounting and auditing, issuing International Accounting Standards for the Public Sector (NIC-SP).In this way, both the quality and comparability of the financial information presented by public sector entities in the various countries of the world will increase. For the preparation of the IAS-SP, the Committee not only relies on the IAS, but also takes into account the country's regulatory authorities, professional accounting institutions and other organizations interested in the presentation of financial information.
According to Argibay (2012), public entities prepare general financial statements for users who are not able to access financial information, such as citizens who require it to evaluate the performance of their governors; and specific financial statements to meet the needs of certain government sectors that require specialized information, the preparation of these financial statements is carried out by the accrual accounting method that allows the preparation of the statement of financial position, the statement of financial results, the statement of cash flows and statement of changes in net assets / equity.
The use of International Public Sector Accounting Standards (IAS-SP) is more flexible than IAS because their adoption is not imposed; In the event that there are regulations in the country that govern accounting practices and the presentation of financial statements, the IAS-SP do not overlap with these criteria, but rather promote harmonization between these and the internal regulations of each country. to contribute to greater comparability. In the event that the government does not have specific standards for the presentation of its reports, the IAS-SP are a great tool to help prepare accounting-type reports. In this case, the Committee recommends the adoption of the IAS-SP, which would lead to an improvement in the quality of financial information for the public sector,in this way they can better make decisions regarding the allocation of resources by the government; it also establishes that public companies will be governed by the IAS and not by the IAS-SP.
Álvarez (2011); He says that considering that there were a large number of accounting criteria and practices in Public Sector agencies or entities, we spoke in all instances of this, that is, the national, decentralized and local government. For the presentation of its financial information, the Council of the International Federation of Accountants - IFAC, acronym from the International Federation of Accountants (IFAC), through its Public Sector Committee, has deemed it necessary to issue the International Accounting for the Public Sector (NIC-SP) standardizing the criteria in financial, accounting and auditing matters. In this way, both the quality and comparability of the financial information presented by the Public Sector entities of the various countries of the world will increase.The International Public Sector Accounting Standards (IPSAS) are issued by IFAC through the Public Sector Committee (PSC).
The IPSAS have taken as their source the International Accounting Standards IAS issued by the International Accounting Standards Committee IASC (today IASB). For the preparation of the IAS-SP, the Committee is not only based on the International Accounting Standards, but also takes into account the country's regulatory authorities, professional accounting institutions and other organizations related to the presentation of financial information. The Public Sector Committee (PSC) is a permanent Committee of the Council of the International Federation of Accountants (IFAC) that has been constituted to analyze, through worldwide coordination, the needs of those involved in the presentation of financial information., accounting and auditing of the Public Sector.
The International Federation of Accountants (IFAC) has issued, through its Public Sector Committee, the well-known International Accounting Standards for the Public Sector - NIC-SP, in order to achieve a better and more adequate Public Administration through standardization of accounting, financial and auditing criteria applicable to said sector. Likewise, in the fourth part of this article a brief and concise description is made of each of the standards issued by the International Public Sector Accounting Standards Board - IPSASB, which range from IAS-SP 1: Presentation of Financial Statements to the IAS-SP 21: Impairment of Non-Cash-Generating Assets. Similarly, the date of their respective issuance is recorded for each of them,officialization and validity (if applicable) in the case of Peru. For the preparation of the IAS-SP, the Committee is not only based on the International Accounting Standards, but also takes into account the country's regulatory authorities, professional accounting institutions and other organizations related to the presentation of financial information. The Committee has been empowered to issue IAS-SP on behalf of the IFAC Council. Currently, governments and other entities of the Public Sector follow highly diverse accounting practices for the presentation of their financial information and in many countries there are no officially authoritative standards for this sector.The country's regulatory authorities, professional accounting institutions, and other organizations linked to the presentation of financial information are also taken into account. The Committee has been empowered to issue IAS-SP on behalf of the IFAC Council. Currently, governments and other entities of the Public Sector follow highly diverse accounting practices for the presentation of their financial information and in many countries there are no officially authoritative standards for this sector.The country's regulatory authorities, professional accounting institutions, and other organizations linked to the presentation of financial information are also taken into account. The Committee has been empowered to issue IAS-SP on behalf of the IFAC Council. Currently, governments and other entities of the Public Sector follow highly diverse accounting practices for the presentation of their financial information and in many countries there are no officially authoritative standards for this sector.Governments and other entities of the Public Sector follow highly diverse accounting practices for the presentation of their financial information and in many countries there are no officially authoritative standards for this sector.Governments and other entities of the Public Sector follow highly diverse accounting practices for the presentation of their financial information and in many countries there are no officially authoritative standards for this sector.
Public entities prepare general financial statements for users who are not able to access financial information, such as citizens who require it to evaluate the performance of their governors and specific financial statements to meet needs for certain sectors of the government that require information. specialized. The preparation of these financial statements is carried out by the accrual accounting method, which allows the preparation of the Statement of Financial Situation, the Statement of Financial Results, the Statement of Cash Flows and the Statement of Changes in Equity. The use of NIC-SP is more flexible than IAS, because its adoption is not required. In the event that there are regulations in the country that govern accounting practices and the presentation of financial statements,IAS-SP do not overlap with these criteria, but rather promote harmonization between these and the internal regulations of each country to contribute to greater comparability.
In the event that the government does not have specific standards for the presentation of its reports, the IAS-SP are a great tool to help prepare accounting reports. The Committee recommends, in this case, the adoption of IAS-SP, which would lead to an improvement in the quality of financial information for the Public Sector. In this way, decisions regarding the allocation of resources by the government can be better made. It also establishes that public companies will be governed by the IAS and not by the IAS-SP.
According to the DNCP (2012); The objective of the International Accounting Standards for the Public Sector (IAS-SP) is to establish its own regulations in order to increase the quality of the financial information of the Public Sector worldwide. The International Accounting Standards for the Public Sector are of great help for the presentation of financial statements and, in itself, all financial information related to this Sector, since it has an accounting treatment different from the private one in some aspects. On the other hand, the translations into Spanish that have currently been made of the NIC-SP are of great help for users of this information, since they facilitate their interpretation.With the implementation of these Standards for the Public Sector, the aim is to improve the quality of the information and harmonize the presentation of the information worldwide. Finally, given the importance of these International Accounting Standards for the Public Sector, in the following editions we will present an analysis and casuistry regarding each one of them.
VALUATION AND RECOGNITION OF ASSETS, LIABILITIES AND EQUITY
VALUATION OR MEASUREMENT:
According to accounting standards, the valuation or measurement is the determination of the value of an asset, liability and equity. In other words, it is the value that is going to be taken into account to take it into the accounting books. Sometimes the valuation is only based on one document, other times on multiple documents. This valuation sometimes occurs only on one date, other times it occurs on several dates, according to negotiations with customers, suppliers, creditors, etc.
According to accounting standards, measurement is the process of determining the monetary amounts for which the elements of the financial statements are recognized and kept in the accounts, for their inclusion in the balance sheet and income statement. To do it, the selection of a particular measurement base or method is necessary. Different measurement bases are used in financial statements, with different degrees and in different combinations between them. Such bases or methods are the following:
- Historical cost. Assets are recorded at the amount of cash and other items paid, or at the fair value of the consideration given in exchange at the time of acquisition. Liabilities are recorded for the value of the product received in exchange for incurring the debt or, in some circumstances (for example in the case of taxes), for the amounts of cash and other equivalent items that are expected to be paid to satisfy the corresponding debt, in the normal course of operation.Current cost. Assets are accounted for at the amount of cash and other cash-equivalent items, which would have to be paid if the same asset or an equivalent is currently acquired.Liabilities are accounted for at the undiscounted amount of cash or other cash equivalent items that would be required to settle the liability at the present time. Realizable (or settlement) value. Assets are accounted for for the amount of cash and other cash-equivalent items that could be obtained, at the present time, by their unforced sale. Liabilities are carried by their settlement values, that is, the undiscounted amounts of cash or other cash equivalents, which are expected to be able to pay off the debts, in the normal course of the operation. Present value. Assets are recorded at present value, discounting the net cash inflows that the item is expected to generate in the normal course of the operation. Liabilities are carried at present value,discounting the net cash outflows that are expected to be needed to pay the debts, in the normal course of the operation.
The basis or method of measurement most commonly used by entities, when preparing their financial statements, is the historical cost. This is generally combined with other measurement bases. For example, inventories are carried at the lower of historical cost and net realizable value, listed securities can be carried at market value, and pension obligations are carried at present value. In addition, some entities use current cost in response to the inability of the historical cost accounting model to deal with the effects of changes in the prices of non-monetary assets.
RECOGNITION
Recognition is the process of incorporation, in the balance sheet or in the income statement, of an item that meets the definition of the corresponding element, also satisfying the criteria for its recognition established in paragraph 83. This implies the description of the item with words and by means of a monetary amount, as well as the inclusion of the item in question in the totals of the balance sheet or the income statement. The lack of recognition of these items cannot be alleviated by describing the accounting policies followed, nor by means of notes or other explanatory material.
Any item that meets the definition of an element should be recognized as long as: (a) it is probable that any economic benefit associated with the item will reach or leave the company; and, (b) the item has a cost or value that can be reliably measured. When assessing whether an item meets these criteria and, therefore, is qualified for recognition in the financial statements, it is necessary to take into account the materiality conditions. The interrelation between the elements means that any item that meets the definition and recognition conditions to be a certain element, for example an asset, automatically requires the recognition of another element related to it, for example an income or a liability.
Regarding the probability of obtaining future economic benefits; This concept is used, under the conditions for its recognition, with reference to the degree of uncertainty with which the future economic benefits associated with it will reach, or leave, the company. The concept takes into account the uncertainty that characterizes the environment in which the company operates. The measurement of the degree of uncertainty, corresponding to the flow of future benefits, is made from the evidence available when the financial statements are prepared. For example, when it is probable that a receivable from another entity will be paid by it, it is justifiable, in the absence of any evidence to the contrary, to recognize such receivables as an asset. However, for a large part of accounts receivable,A certain degree of default is normally considered probable, and therefore an expense is recognized that represents the expected reduction in economic benefits for this reason.
Regarding the reliability of the measurement, the second condition for the recognition of the item is that it has a cost or value that can be measured reliably. In many cases, when cost or value must be estimated, the use of reasonable estimates is an essential part of the preparation of the financial statements, and should not impair their reliability. However, when a reasonable estimate cannot be made, the item is not recognized in the balance sheet or income statement. For example, the expected damages of a litigation before the courts, can meet the definitions of both assets and income, as well as the condition of probability to be recognized; however, if the claim cannot be reliably measured, neither the asset nor the income should be recognized. Nonetheless,the existence of the claim can be revealed by means of notes, explanatory material or supplementary tables.
An item that, at a given time, does not meet the conditions for recognition established in paragraph 83, may nevertheless qualify for recognition as a consequence of circumstances or events, produced at a later point in time. It may be justified that an item that, even having the essential characteristics to be an element, still needs to meet the conditions for recognition, be disclosed through notes, tables or other informative material within the financial statements. This is appropriate when the recognition of such item is considered relevant, for the users of the financial statements, for the evaluation of the financial situation, the results and the cash flows of a company.
ASSET RECOGNITION
An asset is recognized in the balance sheet when it is probable that the same future economic benefit will be obtained for the company, and in addition the asset has a cost or value that can be reliably measured. An asset is not recognized in the balance sheet when it is considered unlikely that, from the corresponding disbursement, economic benefits will be obtained in the future. Instead, such a transaction leads to the recognition of an expense in the income statement. This accounting treatment does not imply that management's intention in making the disbursement was other than to generate economic benefits in the future, or that management was wrong in doing so. The only implication of the above is that the degree of certainty, about the economic benefits that will reach the company, after the current accounting period,it is insufficient to justify the recognition of the asset.
RECOGNITION OF LIABILITIES
A liability is recognized in the balance sheet when it is probable that, from the payment of this present obligation, the outflow of resources that carry economic benefits will be derived, and also the amount of the disbursement to be made can be reliably evaluated. In practice, obligations derived from contracts, in the proportional part not yet fulfilled (for example, debts for inventories ordered but not yet received), are not recognized as such obligations in the financial statements. However, such debts may meet the definition of liabilities and, assuming they satisfy the conditions to be recognized in their particular circumstances, they may qualify for recognition in the financial statements. In such circumstances,The fact of recognizing liabilities also requires the recognition of the corresponding assets or expenses.
VALUATION AND RECOGNITION OF INCOME, EXPENSES AND RESULTS
VALUATION OR MEASUREMENT
According to accounting standards, measurement is the process of determining the monetary amounts for which the elements of the financial statements are recognized and kept in the accounts, for their inclusion in the balance sheet and the income statement. To do this, the selection of a particular basis or method of measurement is necessary. Different measurement bases are used in financial statements, with different degrees and in different combinations between them. Such bases or methods are the following:
The basis or method of measurement most commonly used by entities, when preparing their financial statements, is the historical cost. This is generally combined with other measurement bases. For example, the purchase and sale of inventories are carried at the lower of historical cost and net realizable value.
RECOGNITION OF INCOME
Income is recognized in the income statement when an increase in future economic benefits has arisen, related to an increase in assets or a decrease in liabilities, and furthermore the amount of income can be reliably measured. Ultimately, this means that such income recognition occurs simultaneously with the recognition of increases in assets or decreases in liabilities (for example, the net increase in assets derived from a sale of goods and services, or the decrease in liabilities resulting from the waiver of the right of collection by the creditor). Procedures normally adopted in practice to recognize revenue, for example the requirement that revenue must be accrued (or accrued),are applications of the conditions for recognition set out in this Conceptual Framework. Generally, such procedures are aimed at restricting recognition as income only to those items that, being able to be measured reliably, possess a sufficient degree of certainty.
RECOGNITION OF EXPENSES
An expense is recognized in the income statement when a decrease in future economic benefits has arisen, related to a decrease in assets or an increase in liabilities, and the expense can also be reliably measured. Ultimately, this means that such expense recognition occurs simultaneously with the recognition of increases in obligations or decreases in assets (for example, the accrual or accrual of wages, or the depreciation of equipment).
Expenses are recognized in the income statement on the basis of a direct association between the costs incurred and the obtaining of specific items of income. This process, which is commonly known as correlation of expenses with income, involves the simultaneous or combined recognition of both, if they arise directly and jointly from the same transactions or other events. For example, the various components of expense that make up the cost of goods sold are recognized at the same time as the ordinary income derived from the sale of the goods. However, the application of the correlation process, under this Conceptual Framework, does not allow the recognition of items on the balance sheet that do not meet the definition of assets or liabilities.
When economic benefits are expected to arise over several accounting periods, and the association with income can be determined only generically or indirectly, expenses are recognized in the income statement using systematic and rational distribution procedures. This is often necessary for the recognition of expenses related to the use of assets such as those that make up property, plant and equipment, as well as purchased goodwill, patents and trademarks, in these cases being called the expense corresponding depreciation or amortization. The distribution procedures are designed so that the expense is recognized in the accounting periods in which the economic benefits related to these items are consumed or expire.
Within the income statement, an expense is immediately recognized as such when the corresponding disbursement does not produce future economic benefits, or when, and to the extent that such future benefits do not meet or no longer meet the conditions for their recognition as assets in the balance. An expense is also recognized in the income statement in those cases in which a liability is incurred without recognizing a correlated asset, and also when an obligation arises derived from the guarantee of a product.
VALUATION AND RECOGNITION OF EQUITY VARIATIONS
VALUATION OR MEASUREMENT:
According to accounting standards, measurement is the process of determining the monetary amounts of changes in equity for which the elements of the statement of changes in equity are recognized and carried in the accounting. To do it, the selection of a particular measurement base or method is necessary. Different measurement bases are used in financial statements, with different degrees and in different combinations between them. Such bases or methods are the following:
- Historical cost. Equity variations are recorded for the value of the product received in exchange for incurring the debt or, in some circumstances, for the amounts of cash and other equivalent items that are expected to be paid to satisfy the corresponding debt, in the normal course of the operation. Running cost. Variations in equity are accounted for at the undiscounted amount of cash or other items equivalent to cash that would be required to settle said equity component at the present time. Realizable (or settlement) value. Equity variations are carried by their settlement values, that is, the undiscounted amounts of cash or other cash equivalents, which are expected to be able to cancel the debts, in the normal course of the operation. Present value.Equity variations are carried at present value, discounting the net cash outflows that are expected to be needed to pay debts, in the normal course of the operation.
The basis or method of measurement most commonly used by entities, when preparing their financial statements, is the historical cost. This is generally combined with other measurement bases.
RECOGNITION:
An equity variation is recognized in the balance sheet when it is probable that, from the payment of this present obligation, the outflow of resources that carry economic benefits will be derived, and also the amount of the disbursement to be made can be reliably evaluated. In practice, obligations derived from contracts, in the proportional part not yet fulfilled (for example, debts for inventories ordered but not yet received), are not recognized as such obligations in the financial statements. However, such debts may meet the definition of liabilities and, assuming they satisfy the conditions to be recognized in their particular circumstances, they may qualify for recognition in the financial statements. In such circumstances,The fact of recognizing liabilities also requires the recognition of the corresponding assets or expenses.
INTEGRATED FINANCIAL INFORMATION SYSTEM (SIAF)
According to Velásquez (2011), the Integrated Financial Administration System (SIAF) has been designed as a tool closely linked to the financial management of the Public Treasury in its relationship with the so-called Executing Units (UEs). The SIAF improves the financial management of the Public Treasury, improves the financial management of government entities; it has a database with timely, reliable information with adequate coverage; performs the monitoring by Sectors and Specifications of the Budget Execution; provides the Governing Bodies with timely and consistent information; allows to obtain consistent reports of budget, financial and accounting statements; allows monitoring of budget execution in its different phases;provides a global and permanent view of the availability of financial resources of each entity and of the State; makes available to the National Directorate of Public Accounting (DNCP) information for the preparation of the General Account of the Republic; allows obtaining the Confrontation of Self-declared Operations (COA) reports for the National Superintendency of Customs and Tax Administration (SUNAT); makes available to the Comptroller General of the Republic (CGR), detailed information, reducing reporting requirements and improving the control capacity in timeliness, coverage and selectivity; contributes to better resource allocation and decision making.makes available to the National Directorate of Public Accounting (DNCP) information for the preparation of the General Account of the Republic; allows obtaining the Confrontation of Self-declared Operations (COA) reports for the National Superintendency of Customs and Tax Administration (SUNAT); makes available to the Comptroller General of the Republic (CGR), detailed information, reducing reporting requirements and improving the control capacity in timeliness, coverage and selectivity; contributes to better resource allocation and decision making.makes available to the National Directorate of Public Accounting (DNCP) information for the preparation of the General Account of the Republic; allows obtaining the Confrontation of Self-declared Operations (COA) reports for the National Superintendency of Customs and Tax Administration (SUNAT); makes available to the Comptroller General of the Republic (CGR), detailed information, reducing reporting requirements and improving the control capacity in timeliness, coverage and selectivity; contributes to better resource allocation and decision making.detailed information, reducing reporting requirements and improving the control capacity in timeliness, coverage and selectivity; contributes to better resource allocation and decision making.detailed information, reducing reporting requirements and improving the control capacity in timeliness, coverage and selectivity; contributes to better resource allocation and decision making.
The registration in the SIAF, at the level of the UEs, is organized in 2 parts: i) Administrative Registration (Commitment, Accrued, Drawn Phases) and, ii) Accounting Register (accounting of the Phases as well as Accounting Notes). The Accounting Registry requires that, previously, the Administrative Registry has been made. It can be done immediately after each Phase, but is not required for registration of the next Phase. Unlike other systems, the posting is not fully automated. In the Trading Table, not all entries are of the ideal type (one debit account and one credit account). The structural reason is that the Chart of Accounts was not prepared jointly with the Table of Budget Classifiers. This basically happens in equity entries (Accrued and Drawn Phases).A fact that could be a disadvantage, has facilitated the implementation since the Accountant participates in the process.
The System has clearly defined scopes, namely: Single Registry. The concept of the Single Registry is related to the simplification of the registration of the UEs of all their expenses and income operations and the sending of information to the Governing Bodies: National Directorate of Public Budget (DNPP); General Directorate of Public Treasury (DGTP); National Directorate of Public Accounting (DNCP); Payment Management (only for operations financed with resources from the Public Treasury).
UEs can only register their Drafts in the SIAF when they have received the Draft Authorizations from the Public Treasury. Based on these Drafts, the DGTP issues the Payment Authorizations, which are transmitted to the Banco de la Nación (BN), whose offices at the national level pay only those checks or letter orders loaded in its System, affecting the account only at that time. principal of the Public Treasury. In truth, beyond the fact that the Public Treasury then has to intervene for the Payment Authorization, the Draft registered by the EU ends in the BN, so we could say that the SIAF equipment that operates in the EUs are like terminals of the Public Treasury to carry out the Payment process through the BN.
In the period 1997-1998, the main task of the MEF was the Implementation of the SIAF-SP in all the UEs of the Central Government and Regions, for which training, dissemination and testing programs were carried out. The level of credibility of the Users in the System has been fundamental, the same that has been consolidated during this period. In this regard, we must highlight some important elements: 1. Permanent coordination with the Governing Bodies. The System had to adapt to its procedures and Standards, as well as operational instruments (Tables). 2. Approach, since the end of 1996, with the users (UEs) through the Residents, a permanent link. 3. Parallel manual registration in 1997. It made it possible to know the scope of operations of the UEs for their proper treatment in the System.It also made possible a survey of the use of Budget Classifiers as well as accounting operations, inputs for the first version of the Operations Table. Much attention was also paid to the subject of source documents. It was possible to establish the figure of the file or operation, the registration unit of the system. In the last months of 1997, the UEs registered their operations in a first version in Fox of the SIAF-SP Registration Module. 4. In January 1998, the MEF delivered 506 pieces of equipment (Personal Computer, Modem, Printer, Stabilizer or UPS) to the same number of UEs. In addition to the general software (MSOffice97), the computer has installed the Visual Register Module SIAFSP.Much attention was also paid to the subject of source documents. It was possible to establish the figure of the file or operation, the registration unit of the system. In the last months of 1997, the UEs registered their operations in a first version in Fox of the SIAF-SP Registration Module. 4. In January 1998, the MEF delivered 506 pieces of equipment (Personal Computer, Modem, Printer, Stabilizer or UPS) to the same number of UEs. In addition to the general software (MSOffice97), the computer has installed the Visual Register Module SIAFSP.Much attention was also paid to the subject of source documents. It was possible to establish the figure of the file or operation, the registration unit of the system. In the last months of 1997, the UEs registered their operations in a first version in Fox of the SIAF-SP Registration Module. 4. In January 1998, the MEF delivered 506 pieces of equipment (Personal Computer, Modem, Printer, Stabilizer or UPS) to the same number of UEs. In addition to the general software (MSOffice97), the computer has installed the Visual Register Module SIAFSP.Stabilizer or UPS) to the same number of UEs. In addition to the general software (MSOffice97), the computer has installed the Visual Register Module SIAFSP.Stabilizer or UPS) to the same number of UEs. In addition to the general software (MSOffice97), the computer has installed the Visual Register Module SIAFSP.
The System includes an email mechanism for the transfer of information. 5. Parallel automated registration in 1998, using the equipment and systems provided. The UEs registered and transmitted more than one million operations for a value close to 50% of the total Annual Budget, the same ones that were reflected in the ORACLE Database of the MEF headquarters. This record made it possible to reinforce training, as well as to identify new operations for the Operations Table. A very important aspect of this stage was the review of the treatment of typical operations (payroll, purchases, orders, petty cash, among others). 6. Personnel trained in each EU.
At the end of 1998, before the System was launched, there was at least one suitably trained person in each UE. Progressively a greater number of officials has been incorporated, especially in those UEs that work in the Network. 7. Organization and Commissioning of the Attention Desk, as a center for receiving calls from users and their referral to the various areas (Support, Analysis, Accountants, Quality Control, Informatics). 8. Organization of the User Support Team, with 12 technicians trained in the installation of the System, connectivity, hardware. They have a stock of equipment and parts (PCs, UPS, hard drives, network cards). This team ensures that an EU restores its operational capacity in a maximum of 72 hours. 9. Work Teams at Headquarters: Analysis, to review the treatment of operations,preparation of manuals; Quality Control, to review each software version and support the UEs for proper registration; Accountants, responsible for preparing and maintaining the Operations Table); Informatics (Systems Analysis, Visual, ORACLE, Connectivity, Technical Support groups); Users (Sectoristas) to monitor the work of Residents.
One of the most important aspects of the work developed in these years has been the domain of the logistics aspect, especially in the UEs located outside of Lima (approximately 320). The User Support, Quality Control and Accountants teams have visited all the UEs several times, familiarizing themselves with access and reinforcing the link between the Headquarters and the Users. The presence of the Resident facilitated all this coordination. As of January 1999, the SIAF has become an Official System for the registration of Expenditure and Income operations of the UEs, replacing various registries and reports of the DNPP, the DGTP and the DNCP:
- Each month the UEs receive, through the SIAF, their Commitment Calendar (CALCOM) prepared by the DNPP (whose amounts constitute maximum ceilings (Classifier criteria at the Generic level, Function / Program and Funding Source) to commit); The UEs register their expenses and income operations in the SIAF, information that is then transmitted to the MEF for verification and approval; In the Spending Cycle, the UEs register their operations (files), each of which includes the Commitment, Accrued and rotated. The registration of the Commitment (for operations with third parties, in the Commitment phase the UEs must register the supplier's RUC. At Headquarters, the System verifies that the RUC exists and returns the Company Name) implies the use of an Expenditure Classifier at the of Specific,a Funding Source and the corresponding Goal associated with that expense. The system will verify if this operation is in accordance with CALCOM, applying the budget ceiling criterion. The EU can only commit within the month of validity of the Calendar. The Accrual record is associated with the verification of compliance with the obligation by the supplier, that is, the delivery of goods (for these operations with third parties, the UEs must register information for the SUNAT (COA-State) regarding the Proofs of Payment (Invoices, Credit Notes, Airline Tickets, etc.)). This phase requires a prior Commitment which in turn establishes ceilings and other criteria. The Accrual can occur in the same month or in another month after the registration of the Commitment.The registration of the Draft requires not only a prior Accrual (which in turn establishes ceilings) but the corresponding Authorization of Draft by the DGTP, (applicable only for operations with a source of financing from Ordinary Resources. For other sources, the accrual authorization It is automatic. Something similar happens for Payment Authorizations) that applies the Best Date criterion (date on which it is expected to pay the supplier or disburse the Return. Very useful for the Treasury Cash Programming). The Drawn can occur in the same month or in another month after the Accrual is recorded. The DGTP issues the Payment Authorization of the Drafts (checks, letters orders) of the UEs, being transmitted to the BN, who updates its files with each batch sent, serving the beneficiaries of the Drafts.The registration of the Paid Phase in the EU is automatically processed by the System, with the information of the checks and letters orders paid sent by the BN. In the Income Cycle, the EUs record the Determined and Collected Phases. expenses, income and others, complementary, are accounted for using the Operations Table (TO SIAF), a matrix that relates the Budget Classifiers with the Accounts of the Government Accounting Plan. These records are processed by the System, allowing the obtaining of the Financial and Budgetary Statements required by the Governing Body of the National Public Accounting Directorate (DNCP) within the framework of the preparation of the General Account of the Republic. It should be noted that 29 Specifications (109 UEs) carried out the 1999 Accounting Closing through the SIAF Accounting Module.
Public Sector entities can consult the data registered in the SIAF Central Database, this according to their area of responsibility and level of access: MEF Governing Bodies (DNPP, DGTP and CPN); Sectorial Bodies and Specifications; Other institutions that use the information (Comptroller General of the Republic and SUNAT).
Alva (2010), points out that the experience about SIAF in the country was developed based on other lessons in Latin America. For its development, one of the components of the COPRASEF Special Project was conceived, called Component for the Strengthening of Budgetary and Financial Management (CFGPF), financed with the support of the Inter-American Development Bank (IDB) and with the participation of specialists from the World Bank. The conceptual basis of the SIAF is based on a change in the philosophy of public administration management, within the framework of the State reform process. It is not about the simple implementation of computerized systems and administrative procedures to make the current administration more efficient, it is about organizing a public sector that is at the service of the interests of society,ensuring that the public services provided by the public or private sector are carried out under conditions of optimal quantity, quality and cost.
A decentralized public management is advocated, which is closer to where goods are produced and services are provided; to carry out actions leading to public administrators possessing all the elements for decision-making and rendering an account for the results achieved; likewise, that it guarantees social control by the community. In a general sense, the SIAF is conceived as an instrument to support the decentralization process, organizing the systems and procedures on the basis that the community requires public goods and services in the best conditions of quantity, quality and at the lowest cost. The public sector meets the quantity objective, insofar as it effectively meets the goals for the production of goods and services that are established in government plans,specified in the annual operating plans and in the General Budget of State Income and Expenditures and the budgets of decentralized entities.
The quality objective has to do with the efficiency of the public sector to combine resources and generate the optimal input-product relationships to meet the needs of the population; and, these relationships must be carried out at the lowest possible cost, generating the greatest economy for society. Likewise, public action must comply with the principle of equity, identifying the recipients of economic action and seeking a balance in the distribution of costs and benefits between economic and social sectors and between territorial entities, as well as prioritizing the valuation of environmental costs, quantifying the impact of the use or deterioration of natural resources and the environment and promoting the management of protection, conservation, use and exploitation of the same.
For Vallejos (2010), the main objectives of the Integrated Financial Administration and Control System are to generate capacities within the public sector that allow it to: i) Schedule, organize, execute and control the collection and effective and efficient use of public resources for timely compliance with public sector policies, programs, and projects; ii) Have useful, timely and reliable information to support decision-making at all levels of public administration with a greater number of evaluated alternatives; iii) To ensure that all public servants, without distinction of hierarchy, assume full responsibility for their actions, rendering an account not only of the destination of public resources, but also of the form and result of their application;iv) Strengthen the administrative capacity to prevent or identify and verify the incorrect management of State resources; v) Carry out the management of public resources with the greatest transparency, providing information to the community on the use of resources and the costs of public services; vi) Interrelate the operational and administrative systems with internal and external controls, facilitating the oversight of public management by the competent institutions of the State itself.vi) Interrelate the operational and administrative systems with internal and external controls, facilitating the oversight of public management by the competent institutions of the State itself.vi) Interrelate the operational and administrative systems with internal and external controls, facilitating the oversight of public management by the competent institutions of the State itself.
For Vallejos (2010), the Integrated Financial Administration System must be organized and operated based on a set of general principles, among which are: i) Regulatory centralization and operational deconcentration. At the central level of the ministry in charge of public finances, policies, rules and procedures are defined, while the administration of each of the systems and the management decision-making itself are carried out as close as possible to where they are located. they execute the processes of production of goods and services; ii) Uniqueness. Regarding the scope of application, the SIAF is mandatory for the central administration and decentralized and autonomous entities; iii) Universality. All aspects of public management related to financial systems,administrative and control are part of the SIAF. By financial systems, budget, equity accounting, treasury and public credit are understood; by administrative systems, personnel, contracting of goods and services, administration of fixed assets, raw materials, materials and supplies; by control systems, internal and external controls; iv) Unity. Once the general principles, basic norms and methodologies have been adopted, these must be applied by all the institutions of the system in the processes of programming, control, registration and evaluation of their management; v) Responsibility.of raw materials, materials and supplies; by control systems, internal and external controls; iv) Unity. Once the general principles, basic norms and methodologies have been adopted, these must be applied by all the institutions of the system in the processes of programming, control, registration and evaluation of their management; v) Responsibility.of raw materials, materials and supplies; by control systems, internal and external controls; iv) Unity. Once the general principles, basic norms and methodologies have been adopted, these must be applied by all the institutions of the system in the processes of programming, control, registration and evaluation of their management; v) Responsibility.
All officials without distinction of hierarchies are responsible for their acts in the exercise of public function and the SIAF must be organized to evaluate this obligation; vi) Accountability. The SIAF must be organized so that all public servants have the necessary instruments to exercise responsibility for their actions, and must be accountable for the destination of the administered resources and the results of their management; vii) Transparency. The SIAF, through the definition of organizational structures, functions, systems, administrative procedures, computer systems for monitoring physical and financial data, as well as internal auditing and external control,grants the necessary instruments to strengthen transparency in the use of public resources; viii) Efficacy.
The SIAF is organized to assist in the determination, programming and monitoring of the goals that guarantee the fulfillment of the objectives of the government program; ix) Efficiency. The SIAF monitors the combination of the minimum inputs necessary to ensure that the defined goals are met in the best conditions of quantity and quality; x) Economicity. The public sector produces goods and services through input-product relationships and this combination must be carried out at the lowest possible cost, in aspects related to the production of goods and services in the public sector.
In the Peruvian case, during the period 1997-1998 the Ministry of Economy and Finance (MEF) implemented the SIAF-SP in all the Executing Units (UEs) of the Central Government and the regional UEs. For this, training, dissemination and testing programs were carried out, as well as an important contest of the EU officials who participated in the implementation stage. Among other actions, to guarantee the aforementioned implementation of the system, the following were carried out: Since the end of 1996, rapprochement with users (UEs) through residents, who acted as a permanent link. In January 1998, the MEF delivered 506 pieces of equipment (personal computer, modem, printer, stabilizer or UPS) to the same number of UEs. In addition to general software (MS Office 97), the SIAF-SP Visual Registration Module was installed on the computer.The system included an electronic mail mechanism for the transfer of information. Parallel automated registration in 1998, using the equipment and systems provided.
The UEs registered and transmitted more than a million operations for a value close to 50% of the total annual budget, the same ones that were reflected in the Oracle database of the MEF headquarters. This record made it possible to reinforce training, as well as to identify new operations for the Operations Table. A very important aspect of this stage was the review of the treatment of typical operations (payroll, purchases, orders, petty cash, among others). Trained staff in each EU. At the end of 1998, before the system was launched, there was at least one adequately trained person in each UE. Progressively a greater number of officials has been incorporated, especially in those UEs that work in a network. Organization and start-up of the Service Desk,as a center for receiving calls from users and their referral to the various areas (Support, Analysis, Accountants, Quality Control, IT).
Organization of the User Support Team, with technicians trained in the installation of the system, connectivity and hardware. This working group has a stock of equipment and parts (PCs, UPS, hard drives, network cards), to ensure that an EU restores its operational capacity in a relatively short time. Work teams at headquarters to review the treatment of operations and the preparation of manuals; to review each software version and support the UEs for a proper registration. The headquarters also has accountants, responsible for preparing and maintaining the Operations Table; sectorists to monitor the work of residents; computer technical support, among others.
As of January 1999, the SIAF has become an official registration system for the spending and income operations of the EUs, replacing various records and reports of the National Directorate of Public Budget (DNPP), the General Directorate of the Treasury Public (DGTP); and the Public Accounting Office of the Nation (CPN). Each month the UEs receive, through the SIAF, their Commitment Calendar (CALCOM) prepared by the DNPP. The UEs register their expenses and income operations in the SIAF, information that is then transmitted to the MEF for verification and approval.
In the so-called Spending Cycle, the UEs register their operations (files), each of which includes the Commitment, Accrued and Drawn Phases, according to the following sequence: The registration of the Commitment implies the use of an Expense Classifier at the level of Specific, a Funding Source and the corresponding Goal associated with that expense. The system will verify if this operation is in accordance with CALCOM, applying the budget ceiling criterion. The EU can only commit within the month of validity of the Calendar. The Accrual record is associated with the verification of compliance with the obligation by the supplier, that is, the delivery of goods or the provision of the service. This phase requires a prior Commitment which in turn establishes ceilings and other criteria.The Accrual can occur in the same month or in another month after the registration of the Commitment.
In the case of funds from the Public Treasury, the registration of the Draft requires not only a prior Accrual (which in turn establishes ceilings) but the corresponding Draft Authorization by the DGTP, which applies the Best Date criterion. The Drawn can occur in the same month or in another month after the Accrual is recorded. The DGTP issues the authorization of payment of the drafts (checks, letters orders) of the UEs, transmitting the information to the Banco de la Nación, which updates its files with each lot sent, serving the beneficiaries of the drafts. The registration of the Paid Phase in the EU is processed automatically by the system, with the information of the checks and letters orders paid sent by the Banco de la Nación.
In the so-called Income Cycle, the UEs record the Determined and Collected Phases. Expenses, income and other complementary operations are accounted for using the Operations Table (TO SIAF), a matrix that relates the budget classifiers with the accounts of the Government Accounting Plan. These records are processed by the system, allowing the obtaining of financial and budgetary statements required by the Public Accounting Office of the Nation to prepare the General Account of the Republic.
Figueroa (2010), points out that SIAFs can support the improvement of the productivity of public spending, it is necessary to contextualize the environment in which the Public Sector operates today, as this allows us to organize the sense of urgency and the characteristics that are They begin to demand these systems. Indeed, the potential for using the Internet and the technological revolution in the processes of elaboration and massive dissemination of information, help but also require improving the standards of service and accountability to citizens. In particular, governments are increasingly required to interact with the public, under conditions different from those that have existed until now. The universal right to free, timely and equitable access to State information,as well as the obligation of the State to provide said access has been extended and strengthened as a consensus and whose characteristics can be summarized in the following terms:
The new network technologies tend to reduce the barriers that separate the different branches of the State and the States between them, organizing the provision of services around the needs of the end users (citizens); The new networks of government, civil society and the market will tend to redefine the nature of public services, as the limits between functions or institutions disappear, leaving the activity focused on who can best add and create value; A government centered on citizens will tend to create new functions for citizens and a more prominent role for citizen engagement, as public management systems reincorporate citizenship, moving from a “diffused” democracy to a more personal and immediate model.; For the purposes of preparing policy measures and providing services,citizens will be able to participate directly and widely in the form of decisions and the creation of value; the system of leadership imposed from above that characterizes governments will be replaced; The usual mode of operation of governments will have to be associative, which should produce a true change in the traditional concept of what is understood by responsibility and public management, allowing broad collaboration between institutions and public and private agents.which should produce a true change in the traditional concept of what is understood by responsibility and public management, allowing a broad collaboration between institutions and public and private agents.which should produce a true change in the traditional concept of what is understood by responsibility and public management, allowing a broad collaboration between institutions and public and private agents.
On the other hand, in an environment of increasing globalization and economic interdependence, it is clear that governments urgently need to increase their credibility at the national and international level to ensure macroeconomic stability, greater investment and high-quality growth, this has made good fiscal management a vitally important requirement. Fiscal achievements entail an additional requirement, that is, that good financial management of the public sector should not only be understood as the execution of an efficient administration with solid public finances, but it should also be transparent in its practices, interpreted as an openness to the public regarding the structure and functions of government, the intentions of fiscal policy,public sector accounts and fiscal projections.
The demands of the international economic environment are to level the international standards in fiscal transparency. This will not only generate a qualitative leap in international competitiveness for those who manage to catch up to that standard, but, above all, it would be a contribution to the strengthening of democratic institutions. Seen this way, transparency of government actions is not only important for reasons of justice: it is essential for the public administration to function efficiently and in accordance with the common good, to reduce the uncertainty of economic agents regarding the future and to avoid generating expectations that are counterproductive to economic policy.
However, it is not enough for the State to provide an informative offer to society, but it is necessary for citizens, institutions and especially the media to become active demanders of the information that the State generates. We can deduce from the above that the new challenges to fiscal policy have to do with: The ability to react to a complex and globalized reality, The analysis of the alternative use of resources, to improve the efficiency and effectiveness in the production of goods and services of the State, Greater participation of society; Introduce mechanisms that allow greater transparency and accountability in the administration of resources.
For Figueroa (2010), the financial management of the State is the operating base for the achievement of the goals defined in the fiscal policy, to which these demands are made. Some definitions found in the regulations of Latin American countries are:
- Set of principles, standards, agencies, resources, systems, and procedures that intervene in the programming, management and control operations necessary to attract public funds and apply them to achieve the objectives and goals of the State in the most efficient way possible (Argentina). Set of administrative processes that allow the obtaining of resources and their application to the realization of the achievements of the objectives of the State (Chile). Set of systems, organs, norms and procedures that intervene in the collection of public income and in its application for the fulfillment of the purposes of the State, and will be governed by the Constitutional principles of legality, efficiency, solvency, transparency, responsibility, fiscal balance and macroeconomic coordination.
The previous definitions realize the need to have a set of elements to obtain resources in order to apply them to purposes. Therefore, the concern arises for a management oriented towards the achievement of results, based on a more understandable and meaningful discussion of its allocation, as well as the creation of incentives and mechanisms that facilitate greater efficiency. There is a certain consensus in defining Public Financial Administration, as the set of principles, norms, organisms, resources, systems and procedures that intervene in the programming, management and control operations necessary to attract public funds and apply them for the realization of the objectives and goals of the State in the most efficient way possible.
Let us remember that financial administration always has an instrumental nature, reserving for Public Finance or Public Economy, fields such as financial policy or the study of the economic effects of public income and expenditures. With this, there have been very significant changes in the economic vision of public finances. This change has assigned increasing importance to the intertemporal dimension, to medium-term perspectives, to dynamic factors and to the effect on the public management of fiscal accounts, over short-term visions, focused on cash flows. and macroeconomics that characterized fiscal policy for many years. Therefore, it is established, on the one hand, as a key requirement of the State Financial Administration,the task of keeping up-to-date a financial projection of income and an accurate record of all medium-term fiscal commitments. The logic is fundamentally macroeconomic and does not relate to the allocation of resources to specific activities, except with regard to macro programs or large initiatives. What matters, in this case, is to have a realistic projection of medium-term commitments derived from current public policies and regulations and not a voluntary exercise to balance fiscal accounts in the future.Except for macro programs or large initiatives. What matters, in this case, is to have a realistic projection of medium-term commitments derived from current public policies and regulations and not a voluntary exercise to balance fiscal accounts in the future.Except for macro programs or large initiatives. What matters, in this case, is to have a realistic projection of medium-term commitments derived from current public policies and regulations and not a voluntary exercise to balance fiscal accounts in the future.
The detection of possible future budgetary imbalances should serve to prevent said imbalances, adopting with opportunity the necessary measures to prevent them from materializing. On the other hand, from the microeconomic point of view, there is a broad consensus that the responsibility of the financial authority of the public sector is not limited to the control of spending, but rather that it is well spent, considering that in this way it will be possible to increase the level of services or reduce the tax burden, both benefits always desirable by citizens. In this regard, it is recognized that in order to achieve greater effectiveness of spending, financial administration standards and practices can exert important support, insofar as they largely shape the management of public institutions,which are ultimately the providers of public services. In the search for this balance between macro objectives and those of a micro nature, concern has spread about some problem areas related to State management.
For Fontana (2010), an information system, mainly seeks to provide a means to the organization that allows to help coordinate management actions, collaborate with the decision-making process, timely control relevant deviations, and have a tool to give monitoring the fulfillment of the mission and vision, as well as the guidelines of the planned and decided strategic planning. An information system definition is “a formal set of processes that, operating on a collection of structured data according to the needs of the organization, collects, elaborates and distributes information for the operation, direction and control, supporting the processes of taking of decisions necessary to fulfill the functions defined in their own strategies ”.The important thing to highlight is that the information system is a means and not an end in itself of the organization, it is only a tool to support the action of governing, directing, ordering, disposing and organizing resources.
Beyond the general objective of these Financial Information Systems, defined as the maintenance of the capacity to record and publicly report the financial decisions of public authorities, and by the basic support of the Financial Administration, it is possible to find a wide range of stated objectives and demands on these systems. For example: Develop an online financial information system. For this, it must seek the formation of a dynamic and flexible database adaptable to changes in the information demands of users. Facilities for the generation of information. Have budget accounting for adequate control of commitments and measurement of the cost of capital.Information that allows improvements in the economic performance of the management of financial assets in the public sector. Information for decision-making, especially in relation to the management of public resources and the control of future expenditure commitments, such as monitoring them.
Obtaining management or financial performance indicators. Guarantee the quality and timeliness of the information addressed to the different hierarchical levels of the State administration. Information on costs by centers of responsibility, activity or products, and the determination of added value represented by the goods and services delivered to society. Provide information that allows the management to be measured based on the expected products, programs or services. Have an effective control element. Feedback on budget formulation processes, incorporating procedures to generate expected behavior scenarios. Contribution to identify possibilities for simplifying administrative procedures and reducing bureaucratic costs.Facilities to carry out the inspection and evaluation processes by public entities. Generate inputs for the creation of national accounts, fiscal statistics or other macroeconomic indicators. Establish a means of communication aimed at fully achieving international standards of fiscal transparency in the management of financial resources.
Regarding results, in general, SIAFs / SP are required to consult the obtaining of products, either by browsing the system's database, or through structured processes of consultations, statements or graphics. The current requirement is that access to these products must be possible through the web pages of the State and each of its Services. The products must be of three types: Standard: Reports of greater frequency and use in the administration, incorporating procedures to limit the demands within the set of available data and presentation criteria. Assisted:
Reports obtained through a sequence of screens, structured under a wizard option, providing facilities to users to conform their own information demands, within the available data set, including the possibility of transforming them into standard products. It should be structured as a module with managerial characteristics, aimed mainly at the executive levels of the SIAF user entities. Customized: Requires the report generator software application, intended to satisfy the demands for information in the form and content required by users of the system, not consulted in the standard and assisted options.
The design of the horizontal components of the information system should be projected on the basis of a capture of transactions at the institutional level, and a subsequent aggregation at the immediately higher levels. The typical components of SIAFs / SP are the following:
Budget: It must have instruments that support the formulation of the budget from the demanding or administrative units at the institutional level, within the framework of the budget ceilings defined by higher levels and the medium-term program, as well as serve as approval or sanction of the budget and its subsequent control of execution, particularly of expenditure commitments. It should consider the possibility of formulating, in addition to the financial budget, other types of budgets: production, marketing, by responsibility centers, etc. In this matter, it is convenient to develop actions aimed at coordinating at the international level changes in the budget classifiers in terms of their opening, structuring and treatment of their concepts, which facilitate comparisons. Likewise,that the budgetary items allow the regrouping or reclassification of the data, be it by activity, functional, project, geographic location, economic and others that may arise. Have a budget system that is projected on the basis of an expression of the possible resources and obligations to accrue, including an organic and structured control of future commitments assumed by the State. Within the budget area, we have: i) Medium-term programming: Projection of the resources to be obtained and application to the realization of the achievement of the State's objectives, for a period of time greater than the fiscal year, including the feasibility of generating different scenarios action and supported by the technical criteria defined by the competent authorities,in particular the committed base levels, ii) Budget formulation - Requirements: Projection of budget demands based on resource allocations focused on products, programs or services, in the cases where it is feasible, as well as the incorporation of income estimates for their financing.
The estimates of income and expenses must include a period of time not exceeding one fiscal year and regardless of the feasibility of collection or payment within the budget period. The financial budget is an expected projection of transactional flows, in terms of the possible resources and obligations to accrue during a certain period of time, under the objectives to be achieved and the conditions of fiscal, economic, financial and social action policy; ii) Execution scheduling: Distribution of budgetary requirements in time periods projected for their execution.
Annual cash scheduling: Projection of collections and payments that are assumed from the financial budget approved by the competent authorities, comprising the period of a fiscal year. Periodic cash scheduling: Projection of the collections and payments that are assumed for a period of time, mainly associated with the execution scheduling, floating debt, resources to be received and surplus funds availability; iii) Commitments: Registration of contracts of various kinds, or purchase orders placed on the market, of an explicit or implicit nature, with an immediate or future impact on the budget, as well as the decisions of the administrative authorities that may affect budget availability,those derived from the application of laws and carry-overs for investment expenses authorized in previous periods, those derived from contingent liabilities, even when they do not have an immediate budgetary impact and constitute only potential obligations. Physical control: Register for the control and monitoring of the physical estimates incorporated in the budget requirements. Accounting: Register the economic facts according to the principles of general acceptance, the existing technical criteria in the matter and the logic of the Public Sector accounting system. Auxiliaries: Constituted by means that allow the detailed record of transactions related to financial portfolios, physical assets, inventories and production. Administrative:Support record for the identification of people who interact with the institution and individualization of tangible assets. It should contemplate the follow-up and approval instances of the supporting documentation of the economic facts of a financial nature. Treasury: Mechanisms that facilitate the function of receiving funds, canceling obligations and other movements of availabilities, validation with the periodic cash scheduling, and information to users of the payment program. According to reality and conditions, each country manages its cash funds in a centralized (single checking account of the Public Sector) or decentralized (individual accounts for each institution).It should contemplate the follow-up and approval instances of the supporting documentation of the economic facts of a financial nature. Treasury: Mechanisms that facilitate the function of receiving funds, canceling obligations and other movements of availabilities, validation with the periodic cash scheduling, and information to users of the payment program. According to reality and conditions, each country manages its cash funds in a centralized (single checking account of the Public Sector) or decentralized (individual accounts for each institution).It should contemplate the follow-up and approval instances of the supporting documentation of the economic facts of a financial nature. Treasury: Mechanisms that facilitate the function of receiving funds, canceling obligations and other movements of availabilities, validation with the periodic cash scheduling, and information to users of the payment program. According to reality and conditions, each country manages its cash funds in a centralized (single checking account of the Public Sector) or decentralized (individual accounts for each institution).validation with the periodic cash scheduling, and information to users of the payment program. According to reality and conditions, each country manages its cash funds in a centralized (single checking account of the Public Sector) or decentralized (individual accounts for each institution).validation with the periodic cash scheduling, and information to users of the payment program. According to reality and conditions, each country manages its cash funds in a centralized (single checking account of the Public Sector) or decentralized (individual accounts for each institution).
For Figueredo (2010), the conditions that sustain a SIAF are the following: i) Unity of the State: The Public Sector is conceived as a corporation and the different entities that comprise it act with a unitary criterion in order to satisfy their client generic, society as a whole, in the context of fiscal policy and the guidelines of the legal framework; ii) Flexibility of the State: The evolution in the demands of the community over time generates new, increasingly complex requirements, a situation that forces those responsible for public management to direct their action with a vision of the future and based on a strategic programming of resources; iii) Results Orientation: Programming needs to be evaluated based on a broad management concept, linking products,programs or services expected with the physical, human, financial and technological resources assigned, and in accordance with strategic approaches of an institutional, sectoral and global nature; iv) Regulatory and operational relationship: In dynamic and flexible management, under conditions that guarantee autonomy, it is essential to maintain the principle of normative centralization and operational decentralization in the administration of resources; v) Support for knowledge: The financial information system, as mentioned above, is a necessary but not sufficient condition for good public management.under conditions that guarantee autonomy, it is essential to maintain the principle of normative centralization and operational decentralization in the administration of resources; v) Support for knowledge: The financial information system, as mentioned above, is a necessary but not sufficient condition for good public management.under conditions that guarantee autonomy, it is essential to maintain the principle of normative centralization and operational decentralization in the administration of resources; v) Support for knowledge: The financial information system, as mentioned above, is a necessary but not sufficient condition for good public management.
Greater knowledge and information does not guarantee better decisions at the level of economic and financial policies, but it makes errors of appreciation of those who have to make decisions less likely, since they have a source of information destined to increase their knowledge.
For Figueroa (2010), the pillars that must support the SIAF (the four U's): i) Unique: It must be a unique system for all entities that the State uses to obtain financial resources and their application to the achieving its objectives, contemplating detailed data capture mechanisms, as well as the aggregation and consolidation functionality thereof; ii) Uniform: The budget, the accounting and the administration of funds must be governed by common norms that ensure the coordination and unity of the financial management of the State; iii) Unifying: The SIAF must be a horizontal system of the State, which must contemplate an environment of interfaces with the other horizontal and vertical systems of the State, and with external systems, which are convenient for the management of the public sector; iv) Useful:The SIAF must be an information tool that effectively supports the decision-making process at all hierarchical levels responsible for the administration of public resources: operational, institutional, sectorial and strategic; the oversight work of the competent entities and communication to citizens and international organizations to transmit transparency in public management.
CONCEPTS RELATED TO INTERNATIONAL ACCOUNTING STANDARDS FOR THE PUBLIC SECTOR
Available assets: Includes cash and bank funds that do not have restrictions on their use, as well as those investments that were acquired in order to convert them into cash in the short term or, those that despite having been acquired to be held at maturity or to have a degree of ownership in the long term, they have been destined for sale.
Financial assets - purchase commitment: Refers to financial assets that an entity acquires and whose transfer and cash flows will take place in the future, when they are recognized on the contract date.
Fixed assets: Capital assets that are expected to be held for a period greater than one financial year, intended to be used in the main activities of the entity, or in activities that support or complement those main activities. This Element includes Financial Investments (to be held until maturity and financial instruments representing patrimonial law) whose maturity, disposal or realization is expected to occur in a period of more than one year, to Real Estate assets, machinery and equipment, acquired directly or through financial leasing operations; to real estate investments; to biological assets; and other long-term assets.
Assets for exploration and evaluation: They comprise the disbursements made in connection with the exploration and evaluation of natural resources, before the technical feasibility and commercial viability of their extraction is demonstrated.
Assets for derivative financial instruments: Those that grant at the beginning of the contract the right to exchange financial assets or liabilities under potentially favorable conditions for the company. As the market evolves, such conditions can effectively become business-friendly.
Realizable assets: Includes the assets of the company that are expected to be converted into cash or its equivalents in the normal course of operations. Includes inventories and non-current assets available for sale.
Value update: It is any change in value, which increases or decreases, the value of an asset or a liability, by reference to an external value, for example the market. A value update does not involve exchange, although sometimes it can be established under that assumption (see also the definition of fair value). Rather, a value update results from the holding (possession) of assets and claims.
Joint Venture / Joint Venture: It is a contractual agreement whereby two or more parties undertake an economic activity that is subject to joint control.
Punishment: Elimination or withdrawal from the accounting of an amount previously recognized as an asset. An example can be cited as an account receivable for which the means of collection were exhausted and that was previously recorded in a valuation account (doubtful collection estimate). In that case, both the account receivable and the valuation account are eliminated.
Compensation of accounts: For the purpose of its presentation in the financial statements, it is the accumulation of debit and credit balances, that is, its presentation in a netted or netted manner.
Harvest (harvesting): When the agricultural product is separated from the biological asset from which it comes, or when the vital processes of a consumable biological asset cease, for example when trees are cut down for transformation.
Goodwill (Goodwill): Payment in excess of the fair value of assets less liabilities acquired in a business combination, made by the acquirer, and that represents an expectation of future economic benefit.
Memorandum account: Accounts that are used for the accounting control of commitments and contingencies that do not affect the financial situation, results and cash flows until the balance sheet date they represent, but that could later do so. It is divided into debit memorandum accounts (contingencies) and creditor memorandum accounts (commitments).
Body of the financial statements: It is, for purposes of presenting financial information, the exposure of any item directly in the financial statements.
Development: It is the application of the results of research or any scientific or technological knowledge to a plan or design in particular for the production of goods, methods, processes or new systems, fundamentally improved, before their production or commercial use.
Waste: Irrecoverable loss of quality of stocks, which makes them unusable for the purposes for which they were intended.
Impairment of assets: It is the loss of value of assets, which must be recognized in the financial statements, while, in general, the expected inflows of economic benefits, associated with these assets, are less than the values that are carried forward in books. The methods for their recognition differ, depending on whether they are available, realizable or fixed assets. See the Conceptual Framework, regarding the recognition of assets.
Accrued: Fundamental Hypothesis of Accounting. On this basis, the effects of transactions and other events are recognized when they occur (and not when money or other cash equivalents are received or paid), and are reported on in the financial statements. Financial statements prepared on an accrual basis inform users not only about past transactions that involve income or outflows of cash flows, but also about future obligations and resources that represent flows of cash income to be received in the future.
Temporary differences: These are the differences that exist between the book value of an asset or liability and their tax base. Temporary differences can be taxable (taxable) or deductible.
Company, entity or economic entity: This term refers both to the accounting subject, as to any legal person, and to other business forms as well as to the managed assets; which carry out an organized economic activity for the production, transformation, circulation, administration or custody of goods, for the provision of services and others.
Related entity: Term used to refer to an entity with which there is a link of control (subsidiary), significant influence (associate), representation (branch), or joint control over another entity (joint ventures).
Deliveries to be rendered: Money given to managers, officials and employees, mainly to cover expenses on behalf of the company, such as travel, accommodation, among others, in accordance with the policy implemented by the company. By their nature, these deliveries are recorded in Accounts receivable from staff, shareholders and directors. In certain circumstances, companies also deliver funds to be rendered to third parties, in which case they will be recorded in Sundry Accounts Receivable - Third Parties.
Qualified Stock: Are those stocks that necessarily require a significant period of time to be ready for sale.
Measurement date : Date on which the value of exchanged goods or services is determined, and obligations assumed; or, the date on which the value of an asset or liability is estimated.
Fixed funds: Cash on a fixed or determined amount, also called Petty Cash. The disbursements for which they have been destined are settled periodically, in such a way that the funds are maintained over time. The company determines the form, currency and limits for its use.
Formulas, designs and prototypes: The formulas refer to the development of elements that form compounds, for the production of serial products, as in the case of pharmaceutical products. The designs and prototypes refer to the development of models specifically designed for use or sale, for example the elaboration of matrices for the plastics industry. A limited representation of the design, which allows experiments and tests of its use, is the prototype.
Financial institution: Includes banks; financial; municipal boxes; rural savings and credit banks; small and micro enterprise development companies (EDPYME); and any other entity that carries out activities similar to those mentioned.
Financial instrument: It is a contract that gives rise to both a financial asset in a company and, simultaneously, a financial liability or capital instrument in another company, among which accounts receivable, accounts payable, shares, bonds are considered. and derivatives (options, futures, forwards, among others).
Financial instruments - cash flow hedging: They refer to financial instruments that are used to reduce or extinguish the effect of exposure (hedge or hedge) to the variation in cash flows.
This exposure can be attributed to a particular risk associated with a recognized asset or liability (as in the case of future interest payments on a debt at variable rates) and that can affect the results of the period.
Equity or equity or capital instrument: it is a residual participation in the assets of the company, after the deduction of its liabilities.
Research: Refers to original and planned studies that are undertaken with the aim of obtaining new scientific or technological knowledge.
Accounting books: These are the records that systematically accumulate information on the elements of the financial statements, from which the quantitative financial information that is exposed in the body of the financial statements or in notes to them flows. Said accounting books include at least one daily transaction record (journal) and a balance accumulation record (ledger) .
Consignment merchandise: that which is sent to sellers or distributors for subsequent sale. As long as the control of the asset and the risks and benefits inherent to the asset have not been transferred, it will remain as an asset of the consignor.
Loss : deterioration or loss of a product produced by foreseen or unforeseen causes in an industrial process or by causes inherent to its nature.
Contract (negotiation) date method: In a transaction for the purchase or sale of financial assets, the recognition of the asset to be received and the liability to be paid, as well as the derecognition of the asset being sold, the recognition of the item Receivable related to the operation and the result of the sale or disposition by other means, will be made on the date of contracting (negotiation).
Settlement date method: In a transaction for the purchase or sale of financial assets, the recognition of the asset received, as well as the derecognition of the asset sold and the recognition of the result of the sale or disposal by other means, will be made in the settlement date.
Foreign business: It is any dependent company (subsidiary), associate, joint venture or branch of the company that presents financial statements (reporting company), whose activities are carried out or carried out in a country other than that of the reporting company.
Discontinued operations (discontinued activities): It is a component of the company (comprising operations and cash flows that can be distinguished from the rest of the same) that has been sold or disposed of in another way, or has been classified as held for sale.
Participation in revaluation surplus. It refers to the recognition by accumulation of the net effect of increases and decreases in the measurement at equity participation value, of investments in the equity of entities under control (subsidiaries) or significant influence (associates), when said equity participation is based on variations equity due to updating the value of the entity where it was invested.
Item: Term used to refer to an account, subaccount or division, or transactions contained therein.
Liabilities for derivative financial instruments: Those that grant, at the beginning of the contract, the obligation to exchange financial assets or financial liabilities under potentially unfavorable conditions for the company. As market performance takes place, these conditions can effectively become unfavorable for the company.
Accounting policies: They cover the principles, foundations, bases, agreements, rules and procedures adopted by a company in the preparation and presentation of its financial statements.
Presentation of financial statements: Exposure of quantitative or qualitative information, either in the body of the financial statements, or in the explanatory notes.
Goods or Real Estate Products: These are real estate acquired or built by the entity for its commercialization.
Reclassification: For purposes of the presentation of financial statements and notes, includes the accumulation of financial information, in an item other than the one that contains the account or sub-accounts in which the transaction or the balance of similar transactions is recognized in accounting books. Thus, for example, advances to suppliers are recognized in a liability account (with credit balance), but are presented according to the purpose of the advance. Therefore, if the advance corresponds to inventory purchases, its proper presentation, after reclassification, is that of inventory to be received.
Natural resources: Resources that are extracted from nature and are treated as stocks; among them we have minerals, oil, gas, fish, wood.
Reversal of temporary differences: Corresponds to the decrease in temporary differences between accounting and tax bases, which have as a consequence, the reversal of deferred tax assets and liabilities recognized in previous periods. Reversals produce effects contrary to those previously recognized. Thus, for example, if a taxable temporary difference gave rise to the recognition of an accounting expense for income tax and a tax liability for the same amount, in previous periods, its reversal will give rise to the recognition of income (savings) for income tax. income, and consequently, a lower liability, in the current period.
Item: It is a separate presentation line in the body of the financial statements.
Operating segments: Identifiable components of a company where each one of them produces a different type of product or service, or a different group of related products or services, for which it is exposed to risks and returns different from those of other segments of the company.
Geographical segments: Identifiable components of a company involved in operations in a country or in a group of countries within a particular geographic area, as determined by the company according to specific circumstances. They are exposed to risks and returns different from those of other segments that carry out their activities in different geographical areas.
Share-based payment transactions: Those in which the company receives goods or services in exchange for its own equity instruments, or acquires goods and services incurring obligations whose amounts are based on the price of its shares or other equity instruments of its own..
Transactions between related parties: Transfer of resources, services or obligations between related companies, regardless of whether or not a price associated with the object of that transfer is considered.
Account transfer (or between accounts): accounting record within the same account, through subaccounts (three-digit level) or any greater disaggregation. For example, in the case of exchange of bills with invoices, within Accounts receivable.
Fair value: It is the value at which a good or service can be exchanged at the date of the financial statements, between two or more economic agents, buyer (s) and seller (s), aware of the object of the exchange, in a transaction of free competition.
The usual way to determine fair value is by reference to a comparable market measurement. However, in some cases, other methods provide a measure of fair value, as in the case of property, plant and equipment appraisals, for the purpose of determining their revalued value.
Recoverable value (amount): It is the higher value between the net sale price of an asset (or a cash-generating unit) and its value in use.
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