Contraloría Fiscaliza

Editorial

2024-10-10T18:24:18+00:00

Social audit and its interaction with the comptroller's office

2024-10-15T19:26:17+00:00

The Office of the Comptroller General of the Republic has implemented institutional mechanisms to improve transparency and accountability in public management, in line with the 2020-2024 strategic objectives. Social auditing in local governments plays a crucial role in the evaluation of public management and accountability to society. Through social auditing, the results and findings arising from the interaction between the Comptroller's Office and local governments can be identified and analyzed. In this sense, social auditing in local governments seeks to strengthen citizen participation in the monitoring and evaluation of policies and programs. Social auditing in local governments offers benefits such as the prevention of corruption, creating a culture of propriety and improving the equitable remuneration of public resources. These social auditors are trained in technical, legal, and ethical aspects, and are taught how to perform audits.

Internal control and its impact on the efficiency of the public sector

2024-10-15T19:44:48+00:00

Internal control corresponds to the comprehensive process that an entity implements, with the purpose of guaranteeing that its operations are carried out efficiently and that they are oriented towards its objectives. Internal control prevents fraud by establishing procedures that prevent the misuse of public resorbes, ensuring compliance with legal regulations, optimizing the management and administration of resources, promoting transparency and accountability. In Panama, the Comptroller General of the Republic, as principal director of control matters and being responsible for supervising the use of public resources, issued the Government Internal Control Standards in 1999, integrating into them the five components of internal control: environment control, risk assessment, control activities, information and communication and monitoring, ensuring an adequate internal control structure in the public sector. Solid internal control contributes to the effective and transparent functioning of the public sector. In that sense, the implementation of adequate controls guarantees compliance with the mission of each institution, which is a crucial measure to Foster trust in government entities. With this essay we describe the concept of internal control, its legal basis and how it is important in the management carried out within the public sector.

Results based budgeting as a new approach in public management

2024-10-15T19:52:14+00:00

This essay is focused on the impact of the new Results-Based Budget (RBB) approach, which marks the significant change in budget management in the government sector of Panama, adapting it to modern and proven methodologies, unlike program budgeting. which is based on historical allocations and recurring expenses. With the RBB tool, it is expected to achieve specific objectives regarding the achievements achieved by government actions in favor of the community and increase efficiency in the allocation of resources; It also seeks to improve the quality of public spending, increase transparency, and promote accountability. The implementation of the RBB in Panama, initiated in 2021 by the Ministerio de Economía y Finanzas, is currently in its third phase with a total of 50 government entities, in the process of training and “pilot” exercises in the methodology, to improve institutional capacities to respond to citizen demands, as part of the process of modernizing public management.

Extensions from the perspective of the organic law of the Caja of Seguro Social, Panama

2024-10-15T20:01:00+00:00

The management of extensions by the Caja of Seguro Social is based on the provisions established in both current Law 22 of June 27, 2006, which regulates Public Procurement, and Law 51 of December 27, 2005, of the Caja of Seguro Social, which establish the legal framework to regulate the extension of contracts within the institution. In this context, we will focus on extensions authorized under Law 51, which grants the Caja of Seguro Social the exorbitant power to extend contracts through extension documents, legally equating them to an addendum to the contract. This prerogative allows adjusting the term of the contracts; however, there are differences in the processing of extensions, especially in cases where fines are not imposed. In accordance with Law 51, in cases of force majeure or unforeseeable circumstances, suppliers can request extensions without penalty. Furthermore, when the cause of the delay is attributable to the entity, extensions will also be granted without fine. This work describes the most relevant aspects of the processing of extensions without fines in the Caja of Seguro Social, detailing the criteria, authority and authorizations in which these extensions can be requested without incurring penalties.

The impact of forensic audits in the government sector

2024-10-16T11:35:27+00:00

Forensic auditing emerges as a discipline that combines techniques to prevent and detect possible fraud, it is a fundamental tool to ensure transparency and accountability in the government sector, for this reason, in January 2015, la Contraloría General de la República de Panamá, in its role to monitor, regulate and control public funds, created the Directorate of Investigations and Forensic Auditing (DIAF) by Decree Number 072-15 Leg of 12, to address high-profile cases and provide more expeditious response to the public, in order to provide specialized technical services in forensic auditing, This said, our essay aims to provide the necessary information on the impact that forensic auditing has on the government sector and indicate the specific skills and qualifications necessary for them to carry out their functions effectively, where positions of responsibility must be exercised with integrity and for the benefit of the citizenry. Ultimately, this essay aims to shed light on the vital contributions of forensic auditing as an essential instrument of justice, maintaining public trust, transparency and fostering good governance

Financial autonomy as an efficient public management mechanism: advantages, limitations and its impact on public administration

2024-10-16T15:45:54+00:00

Within this essay we seek to understand in depth how financial autonomy impacts public administration, identifying some benefits of being able to put it into practice, and together identifying the possible obstacles and limitations faced by entities with financial autonomy. As a result of reinforcing knowledge about this tool with various authors, we can mention that financial autonomy is a mechanism that is based on the ability to manage one's own financial resources independently. Including this tool in public management brings various advantages such as: greater efficiency in resource allocation, a more transparent approach, among others. However, public administration and budget management of the public sector present limitations based on the fact that the needs of the population are unlimited and resources are finite, thus we must take into account that the path towards a new, effective and public management efficient recognizes the need to evaluate the possibility of implementing financial autonomy as a mechanism to increase the efficiency of public management. We can conclude with the main idea that, by adopting this interesting mechanism, government entities can adapt their policies and budgets in a more agile way, responding quickly to the changing needs and demands of society, and with adequate controls they would reflect transparent and effective management.

Accounting purification and reconciliation process in Panama, the door to the implementation of the International Public Sector Accounting Standards

2024-10-16T15:52:39+00:00

The accounting purification and reconciliation process (PDCC) is generated, as a consequence of the change in the government accounting system supported by the Government Accounting Standards adopted by Decree No. 234 of December 22, 1997, the Government Accounting System based on IPSAS, on an accrual basis, approved by Decree No. 01-2017-DNMySC of January 3, 2017. (Contraloria General de la República de Panamá, 2018). The accounting purification and reconciliation is composed of administrative, accounting and legal actions that must be carried out by the Public Sector entities, which are responsible for carrying out the processes, which must be programmed to be carried out in the long term, to order the situation of Movable Property, surpluses, shortages, adjustments, reclassifications and incorporations of accounting information, in order to establish the real existence of the rights and obligations that affect the institutional assets. This process will allow financial statements to be reflected without errors. Giving the entities that apply these processes a better presentation of the accountability required by transparency laws. The tool to carry out this work is the Accounting Purification and Reconciliation Process Manual that will provide support to entities from the: (i) legal, (ii) administrative and (iii) accounting points of view.

Modifications to the contract: Adaptation and flexibility in commercial relationships

2024-10-16T18:23:25+00:00

The topic of contract modifications: adaptation and flexibility in commercial relationships focuses on the importance of adjusting contractual agreements to adapt to unforeseen changes or changing situations or force majeure in the business environment or a State entity. The primary objective is to preserve the effectiveness and equity of the original agreement, thus ensuring the continuity of commercial relations in a fair and efficient manner. The results of this study are framed in contributing to the effective management of Business and/or State risks, in order to identify, estimate and value them to prevent the public interest of the State and the Contractor's Assets from being lacerated by these events. In conclusion, addendums or modifications to contracts with clients are vital to maintain flexibility and adaptability in business relationships. By ensuring ongoing compliance and adapting to changing needs, the State can build strong and effective relationships with its customers. The ability to modify a contract reflects the flexibility and adaptability needed in a dynamic business environment. It is essential that the contractual modification process is clear, transparent and collaborative to ensure that all parties are informed and committed to the proposed changes.

A general look at compliance audits and their influence on institutional transparency

2024-10-16T18:37:14+00:00

Compliance audits provide the Comptroller General of the Republic with vital information on the execution of programs and activities in public institutions, ensuring compliance with current regulations and preventing deviations in public management, especially in periods of change and lack of stability in the staff. Solid planning is essential to ensure that audits determine regulatory compliance and meet user expectations. The evaluation of internal control is crucial to evaluate the integrity and effectiveness of management, and the follow-up of previous recommendations verifies the implementation of necessary corrections. With the collaboration of management officials, transparency in the management of activities and programs is strengthened through the implementation of improvements suggested by auditors.The compliance audit requires prior investigation and evaluation of the criteria that regulate the activities and procedures of the audited entity. Promotes transparency and accountability in the public sector. Transparency in this process contributes to good governance and helps identify potential fraud risks. It is important to clearly define the scope of the audit and determine the parties involved. Furthermore, managing detection risks plays a vital role, during the planning stage to avoid inaccurate conclusions.

Management by results: its evolution towards the implementation of performance-based budgeting in Panama

2024-10-16T18:57:41+00:00

An analysis is presented on the evolution of Management by Results (MbR), focusing on Performance-Based Budgeting (PBB). It addresses how this management style prioritizes the achievement of concrete and measurable results, surpassing traditional administrative methods such as incremental budgeting, characterized by increasing previous budgets, where performance and its effects are not the incidental basis for adjustments and modifications. In contrast, performance-based budgeting directs the allocation of public resources towards clear objectives, through a well-structured results chain, promoting more strategic and efficient administration. This chain includes the identification of inputs, activities, products, and final outcomes, supported by specific indicators to assess the progress and impact of public policies. The case of Panama illustrates this transition towards a more transparent and responsible administration, in the quest to improve resource allocation and efficiency in public management, with its implementation led by the Ministerio de Economía y Finanzas, supported by the United Nations Development Programme (UNDP). Hence, performance-based budgeting is projected as a model to boost socioeconomic development and improve the quality of life for citizens.