According to the research model, the problem manifests itself in the management of the National Port Authority. It has been determined that the entity has sufficient budgetary resources to develop its activities for the fulfillment of its goals and objectives, established in its Strategic Plan.
internal-control-system-effective-management-national-port-authority-peru4.1. BIBLIOGRAPHIC BACKGROUND
The existence of the following bibliographic antecedents has been determined:
Escalante Castro Eleuterio (2008) in his thesis entitled: "The control process in institutional management", presented to opt for the Master's Degree in Accounting at the Universidad Nacional Mayor de San Marcos; concludes that the control process is composed of planning, execution and reporting. In planning, the objective, scope, procedures and techniques are designed, among other activities. In execution, control procedures and techniques are applied to obtain sufficient, competent and relevant evidence. The report expresses the situation of the system.
Medina Piedra Roberto (2008) in his thesis called: "Evaluation of the internal control system for the effective development of the audit", presented to opt for the Master's Degree in Accounting at the Universidad Nacional Mayor de San Marcos. The author concludes that it is basic and fundamental to evaluate the internal control system to carry out an audit, because it allows us to dimension the nature, opportunity and scope of the procedures.
Vega Sepúlveda Edilberto (2008) in his thesis called: "The internal control system in modern companies", presented to opt for the Master's degree in Administration at the San Martín de Porres University, concludes that the internal control system is not the The disruptive element of management, if not the opposite, is the facilitating element of optimal management in modern companies.
Hernández Celis Domingo (2009) in the teaching research work called: "Internal control system for the effectiveness of International Technical Cooperation", presented at the Federico Villarreal National University, concludes that the internal control system carried out previously, simultaneous and subsequent is a facilitating instrument of the effectiveness of international technical cooperation that allows to help certain sectors that need resources.
Flores González Julián (2009), in the educational research work called: “Control as a tool for the effectiveness of companies”, presented at the National University of Callao; concludes that to achieve business goals and objectives it is necessary to have internal and external control that is not only on paper but also in the infrastructure of the companies.
Hernández Celis Domingo (2008) in the research work published on the Internet and called: Effective Control and Corporate Management applied to Local Governments; mentions the lack of efficiency, economy and effectiveness of local governments in the fulfillment of their institutional mission for which she proposes a control model that facilitates the corporate management of local governments, which will finally allow having the services that the community demands.
Campos Guevara Cesar Enrique (2003), in his thesis called: Internal control processes in the budget execution department of a state institution, presented at the Autonomous University of Mexico to opt for the Master's Degree in Accounting with a mention in Auditing Higher; concludes that it is relevant to implement, evaluate and provide feedback on the control so that it adequately facilitates the budget execution of state institutions. Control actions are the control tools to evaluate budget execution and then recommend the best guidelines.
Liñán Salinas, Elcida Herlinda (2004) in the thesis called: Control actions for the development of a comprehensive audit of a Public University, presented at the National University Federico Villareal to opt for the Master's degree in accounting and financial auditing; concludes that the actions, programs, procedures and control techniques to determine the efficiency, economy and effectiveness in the use of human, material and financial resources will facilitate the performance of a comprehensive audit in a Public University.
Espinoza Cano, Roberto (2004) in the thesis called: Control of business areas to optimize administration; presented to opt for the Master's Degree in Finance and Accounting at the San Martín de Porres University; concludes that the control acts in all areas and at all levels of the entity. Virtually all activities are under some form of control or monitoring. The main areas of control in the company are: Production areas: If the company is industrial, the production area is the one where the products are manufactured; If the company were a service provider, the production area is the one where the services are provided; The main controls in the production area are the following: Production control: The main objective of this control is to program,coordinate and implement all measures to achieve optimal performance in the units produced, and indicate the most suitable way, time and place to achieve production goals, thus meeting all the needs of the sales department.
Romero García, Adrián (2004), in the thesis called: Internal control deficiencies in the institutional management process, presented to opt for the Master's Degree in Administration at the National University Federico Villarreal; concludes that the problems of internal control prior, concurrent and subsequent; not that it facilitates the institutions management process.
Hernández Celis, Domingo (2005), in his research work called: The institutional control body of the regional education directorates and the effective support to the comptroller's office in the fight against corruption. Presented at the Regional Office of Metropolitan Lima; concludes that the work carried out by the institutional control body in achieving the goals, objectives and mission of the entity is relevant and especially because it is an element to prevent, detect and carry out the frontal fight against corruption of authorities, officials and workers.
Padilla Vento, Patricia (2009), in the thesis called: Internal control in the effectiveness of the budget execution process of the Hogar de la Madre Clinic. Presented at the Federico Villarreal National University to opt for the Master's Degree in Accounting and Financial Auditing; concludes that the internal control system through control actions can determine whether the execution process is being carried out as appropriate and on that basis recommends the corresponding feedback.
4.2. PROBLEM STATEMENT
4.2.1. PROBLEM FORMULATION
According to the research model, the problem manifests itself in the management of the National Port Authority.
It has been determined that the entity has sufficient budgetary resources to develop its activities for the fulfillment of its goals and objectives, established in its Strategic Plan; However, it is necessary to adequately define the roles in the structure of the organization, which include the management, support and operational levels, where, for example, the activities carried out at this last level, such as the Reception and Dispatch of Ships (REDENAVES), has been carried out by another entity other than the National Port Authority, such as the General Directorate of Captaincies and Coast Guard of the Peruvian Navy (DICAPI), based on a current Cooperation Agreement, which makes it difficult to comply with the actions that correspond to the National Port Authority, according to its Organization and Functions Regulation (ROF).
The National Port Authority is in a position to assume all the activities currently carried out by DICAPI, which has not been carried out due to the lack of coordination (lack of solid support to define a new organizational structure that defines the new responsibilities of the entity in accordance with current requirements); In this way, the entity would have greater predominance (it would assume its own responsibilities that by law correspond to it) and what is more it would be incurring lower costs and greater benefits, as to date there are no deficiencies in the payments made to the Management General of Captaincies of the Peruvian Navy, who performs the functions of the National Port Authority in several maritime and river ports of Peru.
Some deficiencies in human resource management have also been determined, which derives from the current organizational structure itself, such as the entity's staff recruitment process, which on average has only twenty percent of staff on the payroll. and the rest, although it is true that they are qualified personnel, are under the Administrative Services Contract (CAS) regime. Likewise, there are a good number of personnel in the condition of interns, who assume functions of a permanent nature and who, of course, do not have the expertise of the case; and therefore they do not facilitate the entity to reach higher levels of institutional efficiency and effectiveness.
Within the framework of the institutional organization, there are certain deficiencies in the corresponding functional segregation. No person or department should handle all aspects or phases of the same transaction, from start to finish. Every transaction must be carried out in four stages: approval, authorization, execution and registration, the control of which must be carried out by relatively independent employees or departments. This segregation of duties is done in order to be able to detect involuntary errors, and so that no person is in a position to commit embezzlement and hide their action by means of falsifying documents, without colluding with other members of the organization..
In the framework of financial management, high balance sheets have been determined, which denotes the deficiency of a portfolio of programs, plans, and projects to provide the country's ports with the logistics infrastructure to facilitate their development; and, in this way, it is not oriented towards concessions to the private sector, which are currently being questioned.
On the other hand, critics of the National Port Authority, such as the politicians of the Peruvian Left (Manuel Dammert case), indicate that there would be some incompatibility between the National Port Development Plan designed by the National Port Authority and the objectives and strategies of sustainable development of the Port of Callao and other ports. It also indicates that public investment plans and calls for private investment in port development do not have a sense of correspondence. Likewise, the contractual commitments authorized by the Law have not been entered into with the private sector, with which institutional goals and objectives could be achieved. In this context, there is no aggressive promotion for the establishment of commercial and logistical activities in the port areas,which would contribute to give a competitive level to the Port of Callao.
Due to the lack of decision, commissions have not been installed to establish technical-operational standards for the development and provision of port activities and services in accordance with the principles of transparency and free competition.
The National Port Authority is only one part of the Port System and despite the support of its staff, it has not been able to get out of the trap in concessions to the private sector in port development areas. A lot is being done, but what is being done needs to be resized.
Given the complexity of the System and the lack of coordination between the component elements, it has not been possible to establish standards to improve the total quality of the National Port System and industrial security in ports, by promoting investment and general training in port techniques. port operations and health and safety at work; and monitoring compliance with national and international standards in this matter. Managers are surely determined to do all of this and move the institution forward, but they need a facilitating element for this, such as the internal control system.
4.2.2. SYSTEMATIZATION OF THE PROBLEM
MAIN PROBLEM:
How to structure the internal control system so that it is the facilitating instrument for the effective management of the National Port Authority?
SECONDARY PROBLEMS:
- How can the synergy of the components of the internal control system facilitate the efficiency and economy of the National Port Authority? How can prior, simultaneous and subsequent control facilitate the continuous improvement of the National Port authority? How can the evaluation and feedback of the internal control system facilitate the optimization of the National Port authority?
4.3. THEORETICAL AND CONCEPTUAL FRAMEWORK
4.3.1. INTERNAL CONTROL SYSTEM
According to Cepeda (1996), the National Control System is the set of control bodies, standards, methods and procedures, structured and functionally integrated, destined to conduct and develop the exercise of government control in a decentralized manner. Its performance includes all the activities and actions in the administrative, budgetary, operational and financial fields of the entities and reaches the personnel who provide services in them, regardless of the regime that regulates them. The System is made up of the following bodies: The Comptroller General of the Republic, as the technical governing body; All organic units responsible for the governmental control function; The independent external audit companies, when they are appointed by the General Comptroller's Office and hired, for a specified period,to perform audit services in entities: economic, financial, computer systems, environment and others.
According to the CGR (2006), government control consists of the supervision, surveillance and verification of the acts and results of public management, in attention to the degree of efficiency, effectiveness, transparency and economy in the use and destination of resources and goods of the State, as well as compliance with legal regulations and policy guidelines and action plans, evaluating the administration, management and control systems, in order to improve them through the adoption of pertinent preventive and corrective actions. Government control is internal and external and its development constitutes an integral and permanent process
Interpreting the CGR (2006), internal control comprises the preliminary and simultaneous precautionary actions and subsequent verification carried out by the entity subject to control, in order that the management of its resources, assets and operations is carried out correctly and efficiently. Its exercise is prior, simultaneous and subsequent. The prior and simultaneous internal control is the exclusive responsibility of the authorities, officials and public servants of the entities as their own responsibility for the functions that are inherent to them, based on the rules that govern the activities of the organization and the procedures established in their plans., regulations, manuals and institutional provisions, which contain the policies and methods of authorization, registration, verification, evaluation, security and protection.Subsequent control is exercised by the senior managers of the server or executing officer, based on compliance with the established provisions, as well as by the institutional control body according to its annual plans and programs, evaluating and verifying the administrative aspects of the use of resources. and State assets, as well as the management and execution carried out, in relation to the goals set and the results obtained. It is the responsibility of the Head of the entity to promote and supervise the operation and reliability of internal control for the evaluation of the management and the effective exercise of accountability, tending that it contributes to the achievement of the mission and objectives of the entity to office.The Head of the entity is obliged to define the institutional policies in the annual plans and / or programs that are formulated, which will be subject to the verifications.
Analyzing the CGR (2006), external control is understood as the set of policies, standards, methods, and technical procedures, which are applicable to the General Comptroller's Office or another organ of the System commissioned or appointed by it, in order to supervise, monitor and verify the management, capture and use of resources and State assets. It is carried out mainly through selective and subsequent control actions. In accordance with its supervision and surveillance roles, external control may be preventive or simultaneous, when it is specifically determined by the Law of the National Control System or by express regulations, without in any case involving interference in the direction and management processes. in charge of the entity's administration, or interference in the corresponding subsequent control.For its exercise, systems of control of legality, management, financial, results, evaluation of internal control or others that are useful depending on the characteristics of the entity and the matter of control will be applied, and may be carried out individually or combined. Likewise, inspections and verifications may be carried out, as well as the procedures, studies and investigations necessary for control purposes.studies and research necessary for control purposes.studies and research necessary for control purposes.
According to Aldave & Meniz (2005), coinciding with the Office of the Comptroller General of the Republic (2004), they explain that Internal Control is the system made up of the organizational structure and the set of plans, methods, principles, rules, procedures and verification mechanisms and evaluation adopted, in order to ensure that all activities, operations and actions, as well as the administration of information and resources, are carried out in accordance with the constitutional and legal regulations in force, within the policies outlined by the management and in attention to the goals or objectives. The exercise of Internal Control must consult the principles of equality, efficiency, economy, speed, morality, publicity and valuation of environmental costs. In consecuense,It must be conceived and organized in such a way that its exercise is intrinsic to the development of the functions of all the existing positions in the entity, and in particular of those assigned to those who have command responsibility. Internal Control will be expressed through the policies approved by the management and administration levels of the respective entities and will be fulfilled in the entire scale of the administrative structure, through the development and application of management techniques, verification and evaluation of administrative regulations., manuals of functions and procedures, information systems and programs for the selection, induction and training of personnel. Any entity under the responsibility of its directors,must at least implement the following aspects that should guide the application of Internal Control:
- Establishment of general and specific objectives and goals, as well as the formulation of operational plans that are necessary; Definition of policies as action guides and procedures for the execution of the processes; Adoption of an adequate organizational system to execute the plans; Delimitation specifies the authority and levels of responsibility; Adoption of standards for the protection and rational use of resources; Direction and administration of personnel in accordance with a system of merits and sanctions; Application of the recommendations resulting from Internal Control evaluations; Establishment of mechanisms that facilitate citizen control of the management of entities; Establishment of modern information systems that facilitate management and control;Organization of reliable methods for the evaluation of management; Establishment of induction, training and updating programs for managers and other personnel of the entity; Simplification and updating of standards and procedures.
According to the COSO Report (1992), Internal Control is a process integrated into the processes, and not a set of heavy bureaucratic mechanisms added to them, carried out by the board of directors, management and the rest of the staff of the an entity, designed with the purpose of providing a reasonable guarantee for the achievement of objectives included in the following categories: Effectiveness and efficiency of operations; Reliability of the financial information; Compliance with laws, regulations and policies. Some fundamental concepts complete the definition: Internal control is a process, that is, a means to an end and not an end in itself. It is carried out by people who act at all levels, it is not just about organization manuals and procedures.It can only bring a reasonable degree of safety, not total safety, to driving. It is designed to facilitate the achievement of objectives in one or more of the indicated categories, which, at the same time, tend to have points in common. When speaking of internal control as a process, reference is made to a chain of actions extended to all activities, inherent to management and integrated into its other basic processes: planning, execution and supervision. Such actions are incorporated (not added) to the entity's infrastructure, to influence the fulfillment of its objectives and support its quality initiatives.they usually have points in common. When speaking of internal control as a process, reference is made to a chain of actions extended to all activities, inherent to management and integrated into its other basic processes: planning, execution and supervision. Such actions are incorporated (not added) to the entity's infrastructure, to influence the fulfillment of its objectives and support its quality initiatives.they usually have points in common. When speaking of internal control as a process, reference is made to a chain of actions extended to all activities, inherent to management and integrated into its other basic processes: planning, execution and supervision. Such actions are incorporated (not added) to the entity's infrastructure, to influence the fulfillment of its objectives and support its quality initiatives.to influence the achievement of your objectives and support your quality initiatives.to influence the achievement of your objectives and support your quality initiatives.
According to the Internal Control Standards Commission of the International Organization of Supreme Audit Institutions (INTOSAI), internal control can be defined as the organizational plan, and the set of plans, methods, procedures and other measures of an institution, aimed at offer a reasonable guarantee that the following main objectives are met: Promote methodical, economic, efficient and effective operations, as well as products and services of the expected quality; Preserve assets from losses due to waste, abuse, mismanagement, mistakes, fraud or irregularities; Respect the laws and regulations, as well as the directives and at the same time stimulate the adherence of the members of the organization to the policies and objectives of the same;Obtain complete and reliable financial and management data presented through timely reports. For senior management it is essential to achieve the best results with economy of efforts and resources, that is, at the lowest possible cost. To do this, it must be controlled that their decisions are adequately carried out, in the sense that the actions carried out correspond to those, within a basic scheme that allows the initiative and considers the current circumstances at all times. Therefore, following INTOSAI guidelines, the higher authority is responsible for the establishment of a suitable and efficient internal control structure, as well as its periodic review and update.For senior management it is essential to achieve the best results with economy of efforts and resources, that is, at the lowest possible cost. To do this, it must be controlled that their decisions are adequately carried out, in the sense that the actions carried out correspond to those, within a basic scheme that allows the initiative and considers the current circumstances at all times. Therefore, following INTOSAI guidelines, the higher authority is responsible for the establishment of a suitable and efficient internal control structure, as well as its periodic review and update.For senior management it is essential to achieve the best results with economy of efforts and resources, that is, at the lowest possible cost. To do this, it must be controlled that their decisions are adequately carried out, in the sense that the actions carried out correspond to those, within a basic scheme that allows the initiative and considers the current circumstances at all times. Therefore, following INTOSAI guidelines, the higher authority is responsible for the establishment of a suitable and efficient internal control structure, as well as its periodic review and update.within a basic scheme that allows initiative and considers the current circumstances at all times. Therefore, following INTOSAI guidelines, the higher authority is responsible for the establishment of a suitable and efficient internal control structure, as well as its periodic review and update.within a basic scheme that allows initiative and considers the current circumstances at all times. Therefore, following INTOSAI guidelines, the higher authority is responsible for the establishment of a suitable and efficient internal control structure, as well as its periodic review and update.
Both definitions (COSO and INTOSAI) complement each other and make up a broad version of internal control: the first emphasizing its character as a process made up of a chain of actions integrated into management, and the second fundamentally addressing its objectives.
Interpreting Osorio (2005), effective control is a comprehensive process carried out by the owner, officials and servants of an entity, designed to face risks and to provide reasonable assurance that, in achieving the entity's mission, the following management objectives will be achieved:
- Promote efficiency, effectiveness, transparency and economy in the operations of the entity, as well as the quality of the public services it provides
- Caring for and safeguarding State resources and assets against any form of loss, deterioration, misuse and illegal acts, as well as, in general, against any irregular event or detrimental situation that could affect them
- Comply with the regulations applicable to the entity and its operations
- Guarantee the reliability and timeliness of the information
- Encourage and promote the practice of institutional values
- Promote the compliance of officials or public servants to be accountable for the funds and public goods in their charge or for a mission or objective commissioned and accepted.
Interpreting the IAI-Spain (2004), effective control is the set of actions, activities, plans, policies, standards, records, organization, procedures and methods, including the attitudes of the authorities and staff, organized and instituted in each entity of the State, for the achievement of the institutional objectives that it seeks. The components are made up of:
- The control environment, understood as the organizational environment favorable to the exercise of practices, values, behaviors and appropriate rules for the operation of internal control and scrupulous management
- The risk assessment, which must identify, analyze and manage the factors or events that may adversely affect the fulfillment of the institutional purposes, goals, objectives, activities and operations
- The management control activities, which are the control policies and procedures imparted by the head or designated official, management and competent executive levels, in relation to the functions assigned to staff, in order to ensure compliance with the entity's objectives
- Prevention and monitoring activities, referring to the Actions that must be adopted in the performance of the assigned functions, in order to take care of and ensure, respectively, their suitability and quality for the achievement of the internal control objectives
- The information and communication systems, through which the registration, processing, integration and dissemination of information, with databases and accessible and modern computer solutions, effectively serve to provide reliability, transparency and efficiency to the processes of Institutional internal control and management
- The monitoring of results, consisting of the updated review and verification of the attention and achievements of the internal control measures implemented, including the implementation of the recommendations made in their reports by the bodies of the National Control System (CNS).
- The improvement commitments, on the basis of which the bodies and personnel of the institutional administration carry out self-evaluations for the better development of internal control and report on any deviation, deficiency susceptible to correction, forcing themselves to comply with the provisions or recommendations made for the improvement or optimization of their work.
CONTROL ENVIRONMENT
According to the COSO Report, the control environment component defines the establishment of an organizational environment favorable to the exercise of good practices, values, behaviors and appropriate rules, to sensitize the members of the entity and generate a culture of internal control. These appropriate practices, values, behaviors and rules contribute to the establishment and strengthening of internal control policies and procedures that lead to the achievement of institutional objectives and the institutional culture of control. The owner, officers and other members of the entity must consider the attitude assumed regarding internal control as fundamental. The nature of this attitude sets the organizational climate and, above all, provides discipline through the influence it exerts on the behavior of the staff as a whole.This component includes: Philosophy of Management, Integrity and ethical values, Strategic management, Organizational structure, Human resources management, Professional competence, Assignment of authority and responsibilities, Institutional Control Body. The quality of the control environment is the result of the combination of the factors that determine it. The greater or lesser degree of their development will strengthen or weaken the control environment and culture, also influencing the quality of the entity's performance.The quality of the control environment is the result of the combination of the factors that determine it. The greater or lesser degree of their development will strengthen or weaken the control environment and culture, also influencing the quality of the entity's performance.The quality of the control environment is the result of the combination of the factors that determine it. The greater or lesser degree of their development will strengthen or weaken the control environment and culture, also influencing the quality of the entity's performance.
RISKS EVALUATION
According to the COSO Report, the risk assessment component encompasses the process of identifying and analyzing the risks to which the entity is exposed in order to achieve its objectives and the preparation of an appropriate response to them. Risk assessment is part of the risk management process, and includes: planning, identification, assessment or analysis, management or response, and monitoring of the entity's risks. Risk management is a process that must be executed in all entities. The owner or designated official must assign responsibility for its execution to an organic area or unit of the entity. Likewise, the owner or designated official and the designated organic area or unit must define the methodology, strategies,tactics and procedures for the risk management process. Additionally, this does not exempt the other organic areas or units, in accordance with the defined methodology, strategies, tactics and procedures, to identify potential events that could affect the proper execution of their processes, as well as the achievement of their objectives and those of the entity, in order to keep them within a tolerance margin that allows providing reasonable assurance about their compliance. Through the identification and assessment of risks, the vulnerability of the system can be evaluated, identifying the degree to which the current control manages the risks. To achieve this, knowledge of the entity must be acquired, so that it is possible to identify the processes and critical points,as well as the events that may affect the activities of the entity. Since governmental, economic, technological, regulatory and operational conditions are constantly changing, risk management must be an ongoing process. Setting institutional objectives is a precondition for risk assessment. The objectives must be defined before the head or designated official begins to identify the risks that may affect the achievement of the goals and before executing the actions to manage them. These are set at the strategic, tactical and operational level of the entity, which are associated with long, medium and short-term decisions respectively.A risk assessment process must be put in place where the entity's goals are previously adequately defined, as well as the methods, techniques and tools that will be used for the risk management process and the type of reports, documents and communications that must be generated and exchanged. Roles, responsibilities and the work environment must also be established for effective risk management. This means that competent personnel must be in place to identify and assess potential risks. Internal control can only give reasonable assurance that an entity's objectives are met. Risk assessment is a component of internal control and plays an essential role in selecting the appropriate control activities to be carried out.Risk management should be part of the culture of an entity. It should be incorporated into the entity's philosophy, practices and business processes, rather than being viewed or practiced as a separate activity. When this is accomplished, everyone in the entity becomes involved in risk management. This component includes: Risk management planning, Risk identification, Risk assessment Risk response.Risk identification, Risk assessment Risk response.Risk identification, Risk assessment Risk response.
MANAGEMENT CONTROL ACTIVITIES
According to the COSO Report, the management control activities component comprises policies and procedures established to ensure that the necessary actions are being carried out in the management of risks that may affect the entity's objectives, helping to ensure compliance with these. The owner or designated official must establish a control policy that translates into a set of documented procedures that allow control activities to be carried out. The procedures are the set of specifications, relationships and systemic ordering of the tasks required to comply with the entity's activities and processes. The procedures establish the methods to carry out the tasks and the assignment of responsibility and authority in the execution of the activities.Management control activities are intended to enable an adequate response to risks in accordance with the plans established to avoid, reduce, share and accept the identified risks that may affect the achievement of the entity's objectives. For this purpose, control activities should focus on the management of those risks that may cause harm to the entity. Management control activities occur in all processes, operations, levels and functions of the entity. They include a range of detection and prevention control activities as diverse as: approval and authorization procedures, verifications, controls over access to resources and files, reconciliations, performance review of operations, segregation of responsibilities,review of processes and supervision. To be effective, management control activities must be adequate, operate consistently according to a plan, and have a cost-benefit analysis. Likewise, they must be reasonable, understandable and directly related to the entity's objectives. This component includes: Authorization and approval procedures; Segregation of functions; Cost-benefit evaluation; Controls over access to resources or files; Verifications and reconciliations; Performance evaluation; Accountability; Review of processes, activities and tasks; Controls for Information and Communication Technologies (ICT).operate consistently according to a plan and have a cost-benefit analysis. Likewise, they must be reasonable, understandable and directly related to the entity's objectives. This component includes: Authorization and approval procedures; Segregation of functions; Cost-benefit evaluation; Controls over access to resources or files; Verifications and reconciliations; Performance evaluation; Accountability; Review of processes, activities and tasks; Controls for Information and Communication Technologies (ICT).operate consistently according to a plan and have a cost-benefit analysis. Likewise, they must be reasonable, understandable and directly related to the entity's objectives. This component includes: Authorization and approval procedures; Segregation of functions; Cost-benefit evaluation; Controls over access to resources or files; Verifications and reconciliations; Performance evaluation; Accountability; Review of processes, activities and tasks; Controls for Information and Communication Technologies (ICT).Controls over access to resources or files; Verifications and reconciliations; Performance evaluation; Accountability; Review of processes, activities and tasks; Controls for Information and Communication Technologies (ICT).Controls over access to resources or files; Verifications and reconciliations; Performance evaluation; Accountability; Review of processes, activities and tasks; Controls for Information and Communication Technologies (ICT).
INFORMATION AND COMMUNICATION
According to the COSO Report, the information and communication component is understood to be the methods, processes, channels, means and actions that, with a systematic and regular approach, ensure the flow of information in all directions with quality and timeliness. This allows fulfilling individual and group responsibilities. Information is not only related to internally generated data, but also to external events, activities and conditions that must be translated into data or information for decision making. Likewise, there must be effective communication in a broad sense through the processes and hierarchical levels of the entity. Communication is inherent in information systems, and its adequate transmission to personnel is essential so that it can fulfill its responsibilities.This component includes: Functions and characteristics of the information; Information and responsibility; Quality and sufficiency of information; Information systems; Flexibility to change; Institutional archive; Internal communication; External communication; Communication channels.
SUPERVISION
According to the COSO Report, the internal control system must be subject to supervision to assess the effectiveness and quality of its operation over time and allow feedback. For this, supervision, also identified as follow-up, includes a set of self-control activities incorporated into the entity's processes and operations, for the purpose of improvement and evaluation. These activities are carried out through prevention and monitoring, follow-up of results and improvement commitments. Internal control being a system that promotes a proactive attitude and self-control at the organizational levels in order to ensure the proper execution of processes, procedures and operations;The supervision or monitoring component allows establishing and evaluating if the system works properly or if changes are necessary. In this sense, the supervision process involves monitoring and evaluating, at the appropriate levels, the design, operation, and manner in which internal control measures are adopted for their corresponding updating and improvement. Supervision activities are carried out with respect to all institutional processes and operations, making it possible to identify opportunities for improvement and the adoption of preventive or corrective actions. This requires an organizational culture that fosters self-control and transparency of management, oriented towards caution and the achievement of internal control objectives.Supervision is carried out continuously and should be modified once conditions change, forming part of the entity's operations gear. This component includes: Prevention and monitoring; Timely monitoring of internal control; Report of deficiencies; Monitoring and implementation of corrective measures; Self appraisal; Independent evaluations.
4.3.2. EFFECTIVENESS OF THE NATIONAL PORT AUTHORITY
INSTITUTIONAL EFFICIENCY:
Interpreting Beas (2006), efficiency refers to the relationship between the services provided or delivered and the resources used for that purpose, compared to an established performance standard. Efficiency can also be conceptualized as virtue to achieve a specific effect; just as it happens with the entity when facilitating the solution of the problems faced by users and the community in general. Efficiency is the relationship between costs and benefits focused on finding the best way to do or execute tasks (methods), so that resources (people, vehicles, various supplies and others) are used in the most efficient way. rational possible. Rationality implies adapting the means used to the ends and objectives that are desired to be achieved, this means efficiency,which leads to the conclusion that the entity will be rational if it chooses the most efficient means to achieve the desired objectives, taking into account that the objectives considered are organizational and not individual. Rationality is achieved through rules and regulations that govern the behavior of the components in search of efficiency.
Efficiency seeks to use the most appropriate means, methods and procedures that are properly planned and organized to ensure optimal use of available resources. Efficiency is not concerned with the ends, as it does with efficiency, if not with the means. Efficiency can be measured by the amount of resources used in the provision of the service provided by the sector. Efficiency increases as costs and resources used decrease. It is related to the use of resources to obtain a good or objective.
INSTITUTIONAL ECONOMY:
Analyzing Stoner (2000), the economy is related to the terms and conditions under which the entity acquires resources, be they financial, human, physical or technological, obtaining the required quantity, at a reasonable level of quality, in the opportunity and appropriate place and, at the lowest possible cost. Obtaining human resources has a cost called labor cost, to the extent that this cost is the most optimal for the entity, resources are being saved. But the economy also occurs through the adequate rationalization of resources. Where the resources in adequate quantity and quality exist, the economy of the entity is being wagered. The acquisition of material resources, must be done at the lowest costs, for this must be worked with tables of quotes,institutional relations to obtain the quantity and quality of the material resources that the entity needs. Officials must practice spending austerity, acquiring the exact resources that the entity needs. When resources are acquired in larger quantities and outside the quality standards required by the entity, the institutional economy is being affected. The decision-making of the authorities and officials has a lot to do with the institutional economy, the new public management demands the best decisions so that the entity has an economy in the scarce resources it administers.When resources are acquired in larger quantities and outside the quality standards required by the entity, the institutional economy is being affected. The decision-making of the authorities and officials has a lot to do with the institutional economy, the new public management demands the best decisions so that the entity has an economy in the scarce resources it administers.When resources are acquired in larger quantities and outside the quality standards required by the entity, the institutional economy is being affected. The decision-making of the authorities and officials has a lot to do with the institutional economy, the new public management demands the best decisions so that the entity has an economy in the scarce resources it administers.
INSTITUTIONAL EFFECTIVENESS:
Investigating Terry (1990), effectiveness refers to the degree to which the entity achieves its objectives and goals or other benefits that they intended to achieve, set by managers or required by society. Efficiency is the virtue, strength and power to manage. Effectiveness is the degree to which institutional objectives are achieved. In other words, the way in which a set of results is obtained reflects effectiveness, while the way in which resources are used to achieve them refers to efficiency. Effectiveness is the normative measure of achievement of results. The entity has indicators for measuring the achievements of the services it provides. When these results or standards are achieved, the objective will have been achieved. To be effective, some variables must be present, such as:
- Qualities of the human organization; Level of trust and interest; Motivation; Performance; Organizational capacity; Information and communication; Effective interaction; Effective decision making.
If the entity has these variables, it reflects the internal state and health of said entity. The entity depends on the financial or economic strength; but they must take into account some measures of administrative efficiency, such as:
- High levels of employee morale and job satisfaction; Low levels of turnover; Good interpersonal relationships; Perception of the entity's objectives; Good use of qualified workforce.
Efficiency and effectiveness do not go hand in hand, since the entity may be efficient in its operations, but not effective, or vice versa; it can be inefficient in its operations and yet be effective, although it would be much more advantageous if effectiveness were accompanied by efficiency. It can also happen that it is neither efficient nor effective.
CONTINUOUS INSTITUTIONAL IMPROVEMENT:
Analyzing Ruiz and Díaz (2006), in the management groups of Japanese companies, the most successful secret in the world lies in having high quality standards for both their products and their employees; Therefore, total quality control is a philosophy that must be applied to all hierarchical levels in an organization, and this implies a process of continuous improvement that has no end. This process allows a broader horizon to be visualized, where excellence and innovation will always be sought, which will lead entrepreneurs to increase their competitiveness, reduce costs, and direct efforts to satisfy the needs and expectations of customers. The basis for the success of the continuous improvement process is the proper establishment of a good quality policy,that you can define precisely what is expected by employees; as well as the products or services that are provided to customers. This policy requires the commitment of all the components of the organization. In order to carry out the continuous improvement process both in a specific department and in the entire institution, it must be taken into consideration that said process must be: economic, that is, it must require less effort than the benefit it provides; and cumulative, that the improvement that is made allows to open the possibilities of successive improvements while guaranteeing the full use of the new level of performance achieved.In order to carry out the continuous improvement process both in a specific department and in the entire institution, it must be taken into consideration that said process must be: economic, that is, it must require less effort than the benefit it provides; and cumulative, that the improvement that is made allows to open the possibilities of successive improvements while guaranteeing the full use of the new level of performance achieved.In order to carry out the continuous improvement process both in a specific department and in the entire institution, it must be taken into consideration that said process must be: economic, that is, it must require less effort than the benefit it provides; and cumulative, that the improvement that is made allows to open the possibilities of successive improvements while guaranteeing the full use of the new level of performance achieved.
Reviewing Gómez (2006), some theoretical insights on improvement or continuous improvement are the following: James Harrington (1993), for him improving a process means changing it to make it more effective, efficient and adaptable, what to change and how to change depends on the specific approach of the entrepreneur and the process. Fadi Kabboul (1994), defines Continuous Improvement as a conversion into a viable and accessible mechanism for companies from developing countries to close the technological gap they maintain with respect to the developed world. Abell, D. (1994), gives as a concept of Continuous Improvement a mere historical extension of one of the principles of scientific management, established by Frederick Taylor,that affirms that every working method is susceptible to being improved (taken from the Continuous Improvement Course dictated by Fadi Kbbaul). LP Sullivan (1994) defines Continuous Improvement as an effort to apply improvements in each area of the organization to what is delivered to customers. Eduardo Deming (1996), according to this author's point of view, total quality management requires a constant process, which will be called Continuous Improvement, where perfection is never achieved but always sought.which will be called Continuous Improvement, where perfection is never achieved but is always sought.which will be called Continuous Improvement, where perfection is never achieved but is always sought.
Interpreting Gómez (2006), continuous improvement is a process that describes very well what the essence of quality is and reflects what companies need to do if they want to be competitive over time. It is something that as such is relatively new since we can see it in the dates of the concepts issued, but despite its recent birth, it is currently highly developed. The importance of this management technique is that with its application it can contribute to improve the weaknesses and strengthen the strengths of the organization, through this it is possible to be more productive and competitive in the market to which the organization belongs, on the other hand Organizations must analyze the processes used, so that if there are any problems they can be improved or corrected;As a result of applying this technique, organizations may grow within the market and even become leaders. We have to improve because, "In today's buyers' market, the customer is king", that is, that customers are the most important people in the business and therefore employees must work to satisfy the needs and their wishes. They are a fundamental part of the business, that is, it is the reason why it exists, therefore they deserve the best treatment and all the necessary attention. The reason why clients prefer products from abroad is the attitude of the business leaders towards the claims for errors that are discussed: they accept their errors as something very normal and apologize to the client, for them the client always has the reason.The basis of the success of the improvement process is the adequate establishment of a good quality policy, which can precisely define what is expected by employees; as well as the products or services that are provided to customers. This policy requires the commitment of all the components of the organization, which must be written so that it can be applied to the activities of any employee, it can also be applied to the quality of the products or services that the company offers, as well it is necessary to clearly establish quality standards, and thus be able to cover all aspects related to the quality system. To give effect to the implementation of this policy, it is necessary that the employees have the required knowledge to know the demands of the clients,and in this way to be able to offer excellent products or services that can meet or exceed expectations. Total quality does not only refer to the product or service itself, but it is the permanent improvement of the organizational, managerial aspect; taking a company as a gigantic machine, where each worker, from the manager, to the lowest-ranking official, is committed to business objectives.Even the lowest-ranking official is committed to business goals.Even the lowest-ranking official is committed to business goals.
4.3.3. NATIONAL PORT AUTHORITY
CREATION :
On March 1, 2003, Law No. 27943, Law of the National Port System, was enacted, the purpose of which is to promote the development and competitiveness of ports, facilitate multimodal transport, modernize ports and develop the logistics chains that exist in the ports. port terminals.
The Law of the National Port System (LSPN) contemplates the creation of the National Port Authority (APN) as a decentralized public body in charge of the National Port System, attached to the Ministry of Transport and Communications, dependent on the Minister, with legal status of internal public law, own patrimony, and with administrative, functional, technical, economic and financial autonomy; normative power by delegation of the Minister of Transport and Communications.
The APN is responsible for the development of the National Port System, the promotion of private investment in the ports and the coordination of the different public or private actors that participate in port activities and services, its objective is to establish and consolidate a solid maritime community- port that links all agents of maritime-port development, state and private with a common objective: the strengthening of the competitiveness of national ports to face the phenomenon of globalization and the challenges posed by the need to fully develop their export sector.
APN FUNCTIONS
The National Port Authority has exclusive technical regulatory powers, and other executive powers delegable to the Regional Port Authorities, in accordance with the provisions of the National Port Development Plan. The attributions are:
- Prepare and propose to the Ministry of Transport and Communications the National Port Development Plan, compatible with self-sustainable development objectives and strategies. Prepare and propose public investment plans and calls for private investment in port development. Approve and supervise the Technical files of port infrastructure works and technical specifications of machinery and equipment, which must include effective measures for the protection of the environment and the community where they are developed Celebrate the contractual commitments authorized by this Law with the private sector, as a result of a public tender, in accordance with the law. Promote the establishment of commercial and logistical activities in the port areas.Regulate the Logistics Activity Zones and authorize those corresponding to national ports Coordinate the integration of the private initiative terminals, infrastructure and port facilities within the National Port System and promote its development Promote port activity and its permanent modernization. the universal provision of port services through publicly owned ports and within the scope of their competence Establish technical-operational standards for the development and provision of port activities and services in accordance with the principles of transparency and freedom competence Regulate technical, operational and administrative access to port infrastructure as well as income,permanence and departure of ships and cargo in ports subject to the scope of its competence; permits for commercial navigation of ships; and in the pertinent the opening and closing of the ports, towing, reception and dispatch, security of the port and of the ships, as well as any other existing activity or to be created. Promote and facilitate the concessions to the private sector in port development areas. Ensure respect for the rights of intermediate and end users in the ports within its jurisdiction Promote port employment, its quality and the achievement of greater stability as a result of training towards greater specialization and polyfunctionality of workers ports.Establish standards to improve the total quality of the National Port System and industrial security in ports, by promoting investment and general training in port operations techniques and hygiene and safety at work; and the monitoring of compliance with national and international standards in this matter Coordinate with the other national authorities the pertinent actions to guarantee general security and the fight against smuggling and illegal traffic Establish alternative dispute resolution systems between operators and users by subjects freely available to the parties.and the monitoring of compliance with national and international standards in this matter Coordinate with the other national authorities the pertinent actions to guarantee general security and the fight against smuggling and illegal traffic Establish alternative dispute resolution systems between operators and users by subjects freely available to the parties.and the monitoring of compliance with national and international standards in this matter Coordinate with the other national authorities the pertinent actions to guarantee general security and the fight against smuggling and illegal traffic Establish alternative dispute resolution systems between operators and users by subjects freely available to the parties.
MISSION
The APN plans, conducts, regulates, supervises and promotes the development of the National Port System, to achieve its competitiveness.
VISION
Have a National Port System consolidated as a leader on the South American west coast.
VALUES
- Leadership and authorityEthics and transparencyVocation to serviceProactive attitudeCommunicationEfficiency and qualitySecurityCreativity and innovationSocial responsibilityTeamwork
LAWS
- Law of the National Port System Regulation of the Law of the National Port System and its Amendments Regulation of Organization and Functions of the National Port Authority Law that creates the Budget Sheet National Port Authority (APN) Approves the Remunerative Scale of the Sheet National Port Authority
4.3.4. CONCEPTUAL FRAMEWORK
CONTROL:
Control is the punctual and continuous process that aims to check if the development of operations has been carried out in accordance with what was planned and achieved the programmed objectives.
The control is punctual, when it is eventually applied to certain areas, functions, activities or people.
Control is continuous when applied permanently. It includes prior, concurrent and subsequent control.
EFFECTIVE CONTROL:
Control is effective when it does not hinder administrative functions, when the suggestions and recommendations of the bodies responsible for it are taken into account, when the necessary corrective measures are applied to optimize business management.
Effective control consists of evaluating a set of financial, economic and social propositions, in order to determine if the goals, objectives, policies, strategies, budgets, programs and investment projects emanating from the management are being fulfilled according to plan.
Effective control is the verification process aimed at determining whether or not the plans are being followed, whether or not progress is being made towards the achievement of the proposed objectives and the action process, if necessary, to correct any deviation.
CONTROL TECHNIQUES
They are the forms, styles, skills and expertise that are applied in the execution of the control procedures.
The audit gives great importance to control, so the specialists have established evaluation techniques, recommendations and reports to make their conclusions and recommendations arrive.
The audit techniques that contribute to effective control are the following:
- Ocular verification techniques.- Includes comparison, observation, selective review and tracking Verbal verification techniques.- Includes inquiry Written verification techniques.- Includes analysis, conciliation and confirmation Documentary verification techniques: Covers the verification and computing Physical verification techniques.- Includes inspection.
INTERNAL CONTROL:
Starting in the second half of the last century, internal control has become essential to carry out effective management of companies, and as a consequence it has become an optimal instrument for auditing. The deepening of internal control as a management tool has been possible thanks to the achievements of administrators, information and communication specialists, systems experts and computer and cybernetics technicians.
In SAS 1 (Statement Auditing Sandard: Statement of Auditing Standards), the following is stated: “Internal Control includes the organization plan and all the methods and coordination measures adopted within a company to safeguard its assets, verify the correctness and reliability of its accounting data, promote operational efficiency and adherence to established management policies… An internal control system extends beyond those matters that relate to the functions of the accounting and finance departments "
According to the American Institute of Accountants, internal control integrates the organization's plans of the entity and all the methods, procedures and systems that are functionally followed in an organization for the knowledge and protection of its assets, the obtaining of correct and reliable financial information and the incentive to the effectiveness of the management and the implementation of the policies that emerged in the management.
More concisely, E. Gironella Masgrau calls "Internal control to the organization plan and the set of methods and procedures that serve to help the management in the best performance of its functions"
The Caballero Bustamante Law Firm, based on the above definitions, highlights three types of internal control according to its objectives: 1) Internal operational control: 2) Internal accounting control; and 3) internal verification.
Likewise, the fundamental principles of internal control are established: 1) Establishment of responsibilities; 2) Separation of duties; 3) Use of verification tests; 4) Operations should not be carried out by a single person; 5) The functions and procedures must be in writing; 6) Appropriate selection of personnel; 7) Rotation of functions; 8) Vacation rest periods are necessary; 9) Proper location of personnel; 10) Accounting is not a substitute for internal control; 11) Use of control accounts; 12) Creation of a filing and correspondence system.
The most important elements of an internal control system can be stated as follows: a) Definition of objectives; b) Adequate organization; c) Agile internal communications; d) Effective procedures and e) Qualified personnel.
EFFECTIVENESS
Internal control systems operate at different levels of effectiveness. In the same way, a given system may function differently at different times.
When an internal control system meets the standard described below, it can be considered an “effective” system.
Internal control can be considered effective if:
• The entity's operational objectives are being achieved.
• They have adequate information to the point of achieving the entity's operational objectives.
• If the financial, economic and patrimonial information of the entity is reliably prepared.
• If the applicable laws and regulations are complied with.
While internal control is a process, its effectiveness is a state or condition of the process at a given time.
Determining whether an internal control system is "effective" or not constitutes a subjective stance that results from the analysis of whether the five components are present and effectively functioned (control environment, risk assessment, control activities, information and communication and supervision). Its effective operation provides a reasonable degree of assurance that one or more of the categories of established objectives (efficiency and effectiveness of operations, reliability of financial information and compliance with applicable laws and regulations) will be met. Therefore, these components are also criteria for determining whether internal control is effective.
AUDIT OF THE INTERNAL CONTROL SYSTEM.
Internal control systems can be examined by both an independent auditor and the internal auditor. The auditor should bear in mind that the a priori assumption of the adequacy of internal control may be wrong. The discovery of a deficiency in internal control can invalidate all the work that the auditor has previously performed. Therefore, before establishing the phases of carrying out their work program, the accounting professional must thoroughly analyze internal control.
To do this, and taking as an example the basic elements of control over accounting, it must:
a) Validate, that is, make sure of the validity of the accounting data, contrasting them with other elements that verify them;
b) Verify the sufficiency, that is, make sure that all the data that should be available are available;
c) Repeat operations, in order to be sure that the calculations are correct.
The procedures used to determine validity are as follows:
- Verification of authorizations; Verification of comparisons; Verification; Verification of documents; Confirmation; Physical review; Repetition of operations; Investigation of accounts; Relationship between internal control and auditors' checks; Verification of operations Controls of operations.
EVALUATION OF INTERNAL CONTROL
In general terms, the evaluation consists of analyzing, studying, comparing and giving an estimate weight to what has been examined. However, for something to be examined, it must exist, that is, there must be systems, competent personnel and documentation.
The classic procedure for an evaluation of this type consists of preparing the pertinent questionnaires for the areas and later, once the appropriate answers have been obtained and put them in conjunction with the information obtained from the different systems of the entity, carry out the definitive evaluation applying standards and known auditing techniques. Of course, the questionnaire should not eliminate the interview, but rather complement it.
Ultimately, the questionnaire is a way to get information. Your goal is to discover facts, opinions and gather quantitative data. The information obtained through questionnaires must be tabulated, refined and serve, together with that from other sources, for the evaluation of internal control systems.
The most significant aspects to consider in the internal control evaluation process, from the planning of the questionnaire to the issuance of the report, are the following:
- Drafting the questionnaire; Scope of coverage; Differences between the general questionnaire and by areas; Tabulation and analysis of the information obtained; Assessment of internal control; and, Internal control audit report. "
EFFECTIVE MANAGEMENT:
Effective management is related to the fulfillment of the actions, policies, goals, objectives, mission and vision of the company; as established by modern business management.
Effective management is the process undertaken by one or more people to coordinate the work activities of other people in order to achieve high quality results that one person could not achieve alone. In this framework, competitiveness comes into play, which is defined as the extent to which a company, under free market conditions, is capable of producing goods and services that pass the market test, while maintaining or expanding the real income of its employees and partners. Also in this framework, quality is conceived, which is the totality of the features and characteristics of a product or service that refer to its ability to satisfy expressed or implicit needs.
Optimal management is the set of actions that allow the maximum performance of the activities carried out by the company. ”
Effective management is to make the members of a company work together more effectively, enjoy their work, develop their skills and skills and that they are good representatives of the company, presents a great challenge for the managers of the same.
CONTROL SYSTEM.
Set of elements, principles, processes, procedures and control techniques linked to each other, in order to evaluate institutional management and contribute to its efficiency and effectiveness.
INTERNAL CONTROL
Process carried out by the governing bodies and the rest of the entity's personnel, designed with the aim of providing a reasonable degree of security regarding the achievement of objectives.
CONTROL PRINCIPLES
Bases, foundations of the control system. They are organizational, administrative, legal, accounting, financial, IT, etc.
CONTROL ENVIRONMENT
Conditions or circumstances in which the control actions of an entity take place.
SCOPE OF CONTROL
It is the space, activity, process, function or other aspect covered by internal control
INTERNAL OPERATIONAL CONTROL
Its purpose is operational and is exercised by operational departments rather than financial and accounting, although they use the latter as a source of information.
INTERNAL ACCOUNTING CONTROL
They are intended to verify the correctness and reliability of accounting.
INTERNAL VERIFICATION
It is made up of specific procedures such as physical measures, income control and expense control, etc. The Board of Directors is responsible for the implementation and maintenance of internal verification systems that can be achieved through accounting procedures.
CONTROL ELEMENTS
to. ORGANIZATION
It is made up of the organic structure; the lines of authority, responsibility and coordination; the division of labor, assignment of responsibility and other aspects.
b. DEFINITION OF OBJECTIVES
They are the reference means used by the control to evaluate institutional management.
c. PROCESSES AND PROCEDURES
Processes are the various stages that control comprises. Instead, the procedures are the actions, the steps that are applied to the institution, activities or functions that are evaluated.
d. PERSONNEL PERFORMANCE
It comprises the recruitment, training, execution of activities, remuneration for work and the results of their activities (efficiency or deficiency), as well as the morality and ethics that apply.
and. PERMANENT SUPERVISION.
It comprises the set of actions to observe, examine, inspect the activities of the personnel.
CONTROL COMPONENTS
The COSO report (Committee of Sponsoring Organizations of the Treadway Commission) considers the following components:
to. CONTROL ENVIRONMENT It is
the basis of all other components of internal control, providing discipline and structure. Control environment factors include the integrity, ethical values and capabilities of the entity's employees, management philosophy and management style, how management assigns authority and responsibility, and organizes and develops professionally to its employees and the care and guidance provided by the Board of Directors
b. RISK ASSESSMENT
State entities as well as all companies face various external and internal risks that have to be assessed. A precondition for risk assessment is the identification of objectives at different levels, linked to each other and internally consistent. The risk assessment consists of the identification and analysis of the risks relevant to the achievement of the objectives, and serves as the basis for determining how the risks should be managed.
c. CONTROL ACTIVITIES Control
activities are the policies and procedures that help ensure that management's instructions are carried out. They help to ensure that the necessary measures are taken to control the risks related to the achievement of the entity's objectives. There are control activities throughout the institutional organization, at all levels and in all its functions include a range of activities as diverse as approvals, authorizations, verifications, reconciliations, reviews of operating profitability, safeguarding of assets and segregation of duties.
d. INFORMATION AND COMMUNICATION
In the entities, it is necessary to identify, compile and communicate pertinent information in a form and term that allows each manager, official and worker to fulfill their responsibilities. Computer systems produce reports containing operational, financial, and compliance data that allow the company to be properly managed and controlled.
and. SUPERVISION
The internal control system of an entity requires supervision, that is, a process that verifies that the proper functioning of the system is maintained over time. This is achieved through ongoing monitoring activities, periodic evaluations of a combination of both. Ongoing supervision occurs in the course of operations. It includes both normal management and supervision activities, as well as other activities carried out by staff in the performance of their duties.
The scope and frequency of the periodic evaluations will essentially depend on an assessment of the risks and the effectiveness of the ongoing monitoring processes. Deficiencies detected in internal control must be reported to higher levels, while senior management and the board of directors should be informed of the significant aspects observed.
These components, linked to each other, generate a synergy and form an integrated system that responds in a dynamic way to the changing circumstances of the environment. The internal control system is intertwined with the entity's operating activities and exists for fundamental business reasons. The internal control system is most effective when controls are incorporated into the entity's infrastructure and are part of the essence of the entity. Through “built-in” controls, quality and empowerment initiatives are fostered, unnecessary expense is avoided, and rapid response is allowed to changing circumstances.
CONTROL BODIES These
are the agencies directly responsible for institutional control.
CONTROL DEPENDENCES
They are made up of the departments, sections and / or divisions that make up the highest control body.
OBJECTIVES OF INTERNAL CONTROL
a. Efficiency and effectiveness of the entity's operations.
b. Reliability of financial information.
c. Compliance with applicable laws and regulations
CONTROL STANDARDS
If plans are the basis against which controls must be established, it logically follows that the first step in the process would be to establish plans. However, since these vary in level of detail and complexity, and since administrators do not usually observe everything, special rules are established. Standards are, by definition, simple evaluation criteria. They are the points selected in a total planning program where evaluation measures are carried out, in such a way that they can guide administrators regarding how things are going without them having to observe each step in the execution of the plans.
CONTROL PROCESS
These are the stages that control comprises. Each stage has its own methodology, its techniques, actions and procedures. It includes planning, organization, direction, coordination and integration, execution and reports.
INTERNAL CONTROL POLICIES
These are the measures, guidelines, parameters that the personnel who carry out control activities must follow.
CONTROL STRATEGIES
It is the art of planning, organizing, directing and coordinating control activities in the medium and long term, in order to contribute to the optimization of institutional management.
CONTROL TACTICS
Art of planning, organizing, arranging, moving and using control procedures in the present and in the short term.
CONTROL GUIDELINES
Delineation of the control activities of an entity.
CONTROL METHODS
These are the processes and procedures that are followed in control activities until positive or negative results are determined
CONTROL PROCEDURES
These are the steps or actions that are applied in the control activities carried out by the control bodies of an entity.
CONTROL INSTRUMENTS They
constitute control instruments, the organization charts, work schedules, worksheets, schedules, etc.
CONTROL TOOLS
They are constituted by the general and specific regulations of the entity.
CONTROL MECHANISMS
These are the ways to control; for example the evaluation of the strategic plan, the evaluation of the budget and the analysis and interpretation of the financial statements.
CONTROL TECHNIQUES
It is the expertise, domain or skill in the use of tools, mechanisms and instruments in institutional control activities.
CONTROL ACTIONS
Effect of applying the procedures in the control activities of an entity.
They are the procedures used in the control activities of an entity.
CONTROL RISKS
The identification and analysis of risks is a continuous interactive process and constitutes a fundamental component of an effective internal control system. Management must carefully examine existing risks at all levels of the company and take appropriate action and manage them
CONTROL AS A FEEDBACK SYSTEM
The position of considering control only as the establishment of standards, evaluation measures and correction of deviations, has changed in recent times. Managers surely measure actual work, compare it against norms, and identify and analyze deviations. But then, to make the necessary corrections, you must implement and improve corrective action programs in order to achieve the desired objectives.
WHAT CAN BE ACHIEVED WITH INTERNAL CONTROL
Internal control can help an entity achieve its objectives, organization, administration, profitability and performance and prevent the loss of resources. It can help you obtain reliable financial information. It can also reinforce confidence that the entity complies with applicable laws and regulations, avoiding damaging effects on its reputation and other consequences. In short, it can help an entity get where it wants to go and avoid dangers and surprises along the way.
WHAT CANNOT ACHIEVE WITH INTERNAL CONTROL
Expectations can be higher and unrealistic. Internal control does not guarantee the success of an entity. Even effective internal control can only "help" the achievement of objectives. It can provide information to management about the entity's progress, or lack of such progress, towards the achievement of those objectives. However, internal control cannot turn an inherently bad manager into a good manager.
4.4. JUSTIFICATION AND IMPORTANCE OF WORK
4.4.1. METHODOLOGICAL JUSTIFICATION
This work uses generally accepted scientific research methodology. Part of the identification of the problem, on this basis it formulates solution proposals and instruments through which said solution will be feasible. The generally accepted methodology has also allowed the definition of the type of research, level of research, applied methods, research design, use of the population and sample for purposes of testing the hypothesis; the application of generally accepted techniques and instruments. All these elements will make it possible to obtain a final product in the best conditions.
4.4.2. THEORETICAL JUSTIFICATION
The work seeks that the internal control system facilitate the effective management of the National Port Authority.
Undoubtedly, such effectiveness can be achieved from several fronts. This work seeks to achieve this by structuring an effective internal control system.
Control is part of management and as such has to be framed to achieve the same goals and objectives of the institution; therefore, the entire process of the system must be aimed at achieving said effectiveness.
The governmental control system applicable to the entity consists of the supervision, surveillance and verification of the acts and results of public management, in attention to the degree of efficiency, effectiveness, transparency and economy in the use and destination of the resources and assets of the Status, as well as compliance with legal regulations and policy guidelines and action plans, evaluating the administration, management and control systems, in order to improve them through the adoption of pertinent preventive and corrective actions.
The internal control system includes the preliminary, simultaneous and subsequent verification actions carried out by the entity, in order that the management of its resources, assets and operations is carried out correctly, efficiently and contributes to institutional effectiveness.
The control action is the essential tool of the internal control system, by which the technical staff of its constituent bodies, through the application of the standards, procedures and principles that regulate government control, carry out objective and systematic verification and evaluation, of the acts and results produced by the entity in the management and execution of the resources, assets and institutional operations, seeking that the institution tends to have the effectiveness that the residents of its jurisdiction demand. As a result of the control actions, the corresponding reports will be issued, which will be formulated to improve the effectiveness of the entity, including the identification of responsibilities that, where appropriate, have been identified. Its results are exposed to the Head of the entity,Unless it is understood as a presumed civil and / or criminal responsible.
Internal Control is a process integrated into the processes, and not a set of heavy bureaucratic mechanisms added to them, carried out by the management of the entity and the rest of the personnel, designed with the aim of providing a reasonable guarantee for the achievement of objectives. institutional (effectiveness). Internal control is a process, that is, a means to an end and not an end in itself. It is carried out by people who act at all levels, it is not just about organization manuals and procedures. It can only bring a reasonable degree of safety, not total safety, to driving and achieving effectiveness. It is designed to facilitate the achievement of objectives (effectiveness).
When speaking of internal control as a process, reference is made to a chain of actions extended to all activities, inherent to management and integrated into its other basic processes: planning, execution and supervision. Such actions are incorporated (not added) to the entity's infrastructure, to influence the fulfillment of its objectives (effectiveness) and support its quality initiatives.
Internal control is the organizational plan, and the set of plans, methods, procedures and other measures of an institution, aimed at offering a reasonable guarantee that the following main objectives are met: i) Promote methodical, economic, efficient and effective, as well as products and services of the expected quality; ii) Preserve the assets from losses due to waste, abuse, mismanagement, errors, fraud or irregularities; iii) Respect the laws and regulations, as well as the directives and at the same time stimulate the adherence of the members of the organization to the policies and objectives of the same; iv) Obtain complete and reliable financial and management data presented through timely reports.
For the National Port Authority it is essential to achieve the best results with economy of efforts and resources, that is, at the lowest possible cost. For this, it must be controlled that its decisions are properly carried out, in the sense that the actions carried out correspond to those, within a basic scheme that allows the initiative and considers the circumstances in force at all times. The higher authority is responsible for the establishment of a suitable and efficient internal control structure, as well as its periodic review and update.
4.4.3. PRACTICAL JUSTIFICATION
In fact, everything that contributes to the achievement of goals and objectives can be applied to get the most out of it.
This work will contain the guidelines on how the internal control system can be the instrument that the entity needs to facilitate effective management.
This work can be taken into account so that management and control do not go along separate routes, but rather as a whole and rather control is the true facilitator of institutional effectiveness.
4.4.4. IMPORTANCE OF WORK
This work is important because it allows the use of different theories so that the entity can have effective management and thus achieve the goals and objectives it pursues.
I. OBJECTIVES
5.1. OVERALL OBJECTIVE
Establish the guidelines to structure the internal control system that facilitates the effective management of the National Port Authority.
5.2. SPECIFIC OBJECTIVES
1. Determine the synergy mode of the components of the internal control system to facilitate the efficiency and economy of the National Port Authority.
2. Establish in which way the prior, simultaneous and subsequent control can facilitate the continuous improvement of the National Port Authority.
3. Define the guidelines for the evaluation and feedback of the internal control system in such a way as to facilitate the optimization of the National Port Authority.
II. HYPOTHESIS FORMULATION
6.1. MAIN HYPOTHESIS
The internal control system is the facilitating instrument for the effective management of the National Port Authority.
6.2. SPECIFIC HYPOTHESES
1. The synergy of components of the internal control system facilitates the efficiency and economy of the National Port Authority.
2. Prior, simultaneous and subsequent control are facilitators of the continuous improvement of the National Port Authority.
3. The evaluation and feedback of the internal control system facilitates the optimization of the National Port Authority
6.3. VARIABLES AND INDICATORS
INDEPENDENT VARIABLE
X. INTERNAL CONTROL SYSTEM
INDICATORS:
X.1. Synergy of internal control components
X.2. Pre, simultaneous and post control
X.3. System evaluation and feedback
DEPENDENT VARIABLE AND. EFFECTIVE MANAGEMENT OF THE NATIONAL PORT AUTHORITY
INDICATORS:
Y.1. Efficiency and institutional economics
Y.2. Continuous institutional improvement
Y.3. Institutional optimization
III. METHODOLOGY
7.1. KIND OF INVESTIGATION
This work will be of the application type, insofar as it is considered by the National Port Authority to strengthen the internal control system and give way to the achievement of goals and objectives.
7.2. INVESTIGATION LEVEL
The research to be carried out will be of the descriptive-explanatory level, since the internal control system will be described and then it will be explained how it facilitates effective management of the National Port Authority.
7.3. INVESTIGATION METHODS
In this investigation the following methods will be used:
1) Descriptive.- To specify all aspects of the internal control system and effective management of the National Port Authority.
2) Inductive.- To infer the information of the sample in the population and determine the conclusions that the investigation merits. The information of the internal control system will be inferred in the effective management of the National Port Authority.
7.4. DESIGN OF THE INVESTIGATION
The design is the plan or strategy that will be developed to obtain the information that is required in the investigation. The design that will be applied will be Non-Experimental, Transectional or transversal, Descriptive, Correlational-causal.
Non-Experimental design is defined as research that will be conducted without deliberately manipulating the variables. In this design, phenomena are observed as they occur in their natural context, and then analyzed.
The transverse or cross-sectional research design to be applied consists of data collection. Its purpose is to describe the variables and analyze their incidence and interrelation at a given moment.
The descriptive transectional design that will be applied in the work, aims to investigate the incidence and the values in which the research variables are manifested.
The correlative-causal Transectional research design to be applied will serve to relate two or more categories, concepts or variables at a given time. It will also be descriptions, but not of categories, concepts, objects or individual variables, but of their relationships, be these purely correlational or causal relationships. Through this type of design the elements of the investigation are associated.
7.5. POPULATION OF THE INVESTIGATION
The population will be made up of officials, workers and users of the National Port Authority; as well as by personnel of the Comptroller General of the Republic.
7.6. INVESTIGATION SAMPLE
7.6.1. TYPE OF SAMPLING APPLIED
The type of sampling applied is STRATIFIED SAMPLING. Sampling in which the population is previously divided into a number of sub-populations or strata, predetermined in advance. Then within each stratum a simple random sampling is carried out to determine the corresponding sample.
STRATIFICATION OF THE POPULATION
7.6.2. APPLICATION OF SIMPLE RANDOM SAMPLING TO THE STRATUS OF THE POPULATION.
Formula to determine the size of the sample corresponding to managers:
To define the size of the sample of managers, the methodological formula for finite populations has been applied:
Formula to determine the size of the sample corresponding to the Consultants:
To define the sample size of the Consultants, the methodological formula for finite populations has been applied:
7.7. DATA COLLECTION TECHNIQUES
The techniques that will be used in the investigation will be the following:
- Surveys.- It will be applied to gather information about the research. Documentary analysis.- It will be used to analyze the norms, bibliographic information and other aspects related to the investigation.
7.8. DATA COLLECTION INSTRUMENTS
The instruments that will be used in the investigation are the following:
- Survey questionnaire.- This instrument will be applied to carry out the survey. Document analysis guide.- This instrument will be useful to record information from standards, books, magazines, the Internet and other sources.
7.9. ANALYSIS TECHNIQUES
The following techniques will be applied:
- Documentary analysis.- This technique will allow to know, understand, analyze and interpret each one of the standards, magazines, texts, books, Internet articles and other documentary sources.Inquiry.- This technique will facilitate the availability of qualitative and quantitative data of a certain level of reasonableness Data reconciliation.- The data of some authors will be reconciled with other sources, so that they are taken into account.Tabulation of tables with quantities and percentages.- The quantitative information will be arranged in tables that indicate concepts, quantities, percentages and others useful details for the investigation Understanding of graphs.- Graphs will be used to present information and to understand the evolution of information between periods, between elements and other aspects.Others.- The use of instruments, techniques,methods and other elements is not limiting, it is merely referential; therefore, as necessary, other types will be used.
7.10. DATA PROCESSING TECHNIQUES
The following data processing techniques will be applied:
- Ordering and classification.- This technique will be applied to treat qualitative and quantitative information in an orderly way, in order to interpret it and get the most out of it. Manual registration.- This technique will be applied to enter the information from different sources. Computerized process with Excel.- To determine various mathematical and statistical calculations useful for research. Computerized process with SPSS.- To enter, process and analyze company data and determine average, association and other indicators.
IV. SCHEDULE
V. BUDGETS
SAW. BIBLIOGRAPHIC REFERENCES
- Aldave & Meniz (2005) Audit and government control. Lime. Graphic Editor Bernilla Beas Aranda José Luis (2006) Efficiency Vs Efficacy. Bogotá. Editorial Norma.Cepeda Alonso, Gustavo (1996) Audit and internal control. Bogotá. Editorial Mc Graw Hill. Comptroller General of the Republic (2004) Government Audit Manual. Lime. Editora Perú.Contraoría General de la República (2004) Government Audit Manual. Lime. Editora Perú.Contraoría general de la República (2006) Internal Control Standards for State entities. Lime. Editora PerúChiavenato Idalberto (1998) Introduction to the General Theory of Administration. Mexico. Mc Graw Hill.Drucker Peter F. (2004) Management in the Future Society. Bogotá. Grupo Editorial Norma.Gómez Bravo, Luis (2006) Continuous Improvement. Havana. University of Havana -Cuba.Johnson,Gerry & Scholes, Kevan (1999) Strategic Direction: Analysis of the Strategy of Organizations. Barcelona. Closas Orcoyen SL Koontz, Harold & O´Donnell, Cyril (1990) Modern Administration Course-An Analysis of Systems and Contingencies of Administrative Functions. Mexico. Litográfica Ingramex SA.Ruiz Villar María Cristina and Díaz Cerón Ana María (2006) Continuous improvement and productivity. Mexico. National Autonomous University of Mexico.Stoner, Freeman Gilbert (2000) Administration. Mexico. Compañía Editorial Continental SA. From CV Terry George (1990) Principles of Management. Mexico. Compañía Editorial Continental SA. From CV.Cyril (1990) Modern Administration Course-An Analysis of Systems and Contingencies of Administrative Functions. Mexico. Litográfica Ingramex SA.Ruiz Villar María Cristina and Díaz Cerón Ana María (2006) Continuous improvement and productivity. Mexico. National Autonomous University of Mexico.Stoner, Freeman Gilbert (2000) Administration. Mexico. Compañía Editorial Continental SA. From CV Terry George (1990) Principles of Management. Mexico. Compañía Editorial Continental SA. From CV.Cyril (1990) Modern Administration Course-An Analysis of Systems and Contingencies of Administrative Functions. Mexico. Litográfica Ingramex SA.Ruiz Villar María Cristina and Díaz Cerón Ana María (2006) Continuous improvement and productivity. Mexico. National Autonomous University of Mexico.Stoner, Freeman Gilbert (2000) Administration. Mexico. Compañía Editorial Continental SA. From CV Terry George (1990) Principles of Management. Mexico. Compañía Editorial Continental SA. From CV.Terry George (1990) Principles of Management. Mexico. Compañía Editorial Continental SA. From CV.Terry George (1990) Principles of Management. Mexico. Compañía Editorial Continental SA. From CV.
THESIS:
Campos Guevara Cesar Enrique (2003) thesis: Internal control processes in the budget execution department of a state institution, presented at the Autonomous University of Mexico to opt for the Master's Degree in Accounting with a mention in Superior Auditing.
Escalante Castro Eleuterio (2008) thesis: "The control process in institutional management", presented to opt for the Master's Degree in Accounting at the Universidad Nacional Mayor de San Marcos.
Espinoza Cano, Roberto (2004) thesis: Control of business areas to optimize administration; presented to opt for the Master's Degree in Finance and Accounting at the San Martín de Porres University.
Flores González Julián (2009) teaching research work: “Control as a tool for the effectiveness of companies”, presented at the National University of Callao.
Hernández Celis Domingo (2008) research work published on the Internet: Effective control and corporate management applied to local governments.
Hernández Celis, Domingo (2005) research work: The institutional control body of the regional education directorates and the effective support to the comptroller in the fight against corruption. Presented at the Regional Office of Metropolitan Lima.
Hernández Celis Domingo (2009) teaching research work: “Internal control system for the effectiveness of International Technical Cooperation”, presented at the Federico Villarreal National University.
Liñán Salinas, Elcida Herlinda (2004) thesis: The control actions for the development of a comprehensive audit of a Public University, presented at the Federico Villareal National University to opt for the Master's degree in accounting and financial auditing.
Medina Piedra Roberto (2008) thesis: “Evaluation of the internal control system for the effective development of the audit”, presented to opt for the Master's Degree in Accounting at the Universidad Nacional Mayor de San Marcos.
Romero García, Adrián (2004) thesis: Internal control deficiencies in the institutional management process, presented to obtain the Master's Degree in Administration at the Federico Villarreal National University.
Padilla Vento, Patricia (2009) thesis: Internal control in the effectiveness of the budget execution process of the Hogar de la Madre Clinic. Presented at the Federico Villarreal National University to opt for the Master's Degree in Accounting and Financial Auditing.
Vega Sepúlveda Edilberto (2008) thesis: “The internal control system in modern companies”, presented to obtain the Master's degree in Administration at the San Martín de Porres University.
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