Government Accounting Programs and Guide
Government Accounting Programs and Guide
Government Accounting Programs and Guide
GOVERNMENT ACCOUNTING
ESQUERLIS MORENO CLASSROOM GROUP
PROGRAMMATIC CONTENT
1. Unit I GOVERNMENT ACCOUNTING
The Administrative Organization of the State.
1.1 Introduction.
1.2 Basic Fundamentals of Public Administration:
— I.2.1 Concepts;
— 1.2.2 Political-Territorial Division;
— 1.2.3 Organic Separation of Powers;
— I.2.4 The Legal Personality of the State.
1.3 The Administrative Organization of the Public Sector:
— I.3.1 Fundamental Elements of the Administrative Organization of the Sector
Public;
— I.3.2.Legal Principles;
— I.3.3 Characteristics of the Administrative Organization of the Public Sector;
— I.3.4 Functions of the Administrative Organization.
1.4 Forms and Classification of Public Administration;
1.5 Watchdogs; 1.6. Legal Regulations.
2
1.2 Basic Fundamentals of Public Administration:
□ I.2.1 Concepts.
Government Accounting
Government accounting systematically investigates the operations carried out by public
administration agencies and entities, and also provides financial, budgetary, programmatic and
economic accounting information, complete and in a timely manner to support the decisions of
officials of public entities, in their different areas and phases of the production process. In its
broadest meaning, government accounting constitutes the set of principles and procedures that
allow the systematic recording of operations, situations and financial consequences of the
administration, to provide the adequate governance of organizations.
GOVERNMENT ACCOUNTING: It is the Discipline that deals with the economic and
financial study of public finances that allows evaluating the administrative management of the
state. It covers a set of principles, rules and procedures that are used to apply the transactions of
public entities in monetary terms to prepare their financial statements to see their economic and
financial situation.
IMPORTANCE: When dealing with government management, it acquires relevant importance
because based on the economic and financial information provided through its statements,
knowledge of the result of budget execution is achieved. The information provided by
government accounting is of primary importance for officials and executives of public sector
entities of both the central and regional administration and for the oversight of citizens and
legislators.
GOVERNMENT ACCOUNTING SYSTEM:
Set of principles and standards that includes operational levels, accounting areas, source
documents, movement reports by areas, chart of accounts, main books and auxiliary accounting
records, financial and budgetary statements, transaction files.
FIELD OF APPLICATION: It is applied in all public sector organizations in charge of training
financial resources and in those that assume the execution of public services and investments.
Accounting is the language of business, but there are various types of businesses and specific
accounting must be adapted for each of these. I will also mention some of the various types of
Accounting: Industrial Accounting. Commercial Accounting, Service Accounting, and
Government Accounting.
SPECIFIC OBJECTIVES:
1. Show accountability to make citizens in general aware of the patrimonial and budgetary
situation of the State through the General Account of the Bolivarian Republic of Venezuela.
3
2. Analyze the efficiency of management and the effectiveness of the entity's programs.
3. Ensure compliance with the Law in Budget execution and in general of the different
transactions carried out by the government entity.
4. Guide administrative management to ensure the efficient use of State resources.
5. Measure the progress and fulfillment of the Government's goals, as well as the distribution
and social impact of the origin and application of public resources.
Government accounting within our country is governed by laws, regulations and standards
that dictate and establish the steps for the management of this accounting, which pursues
transparency in the information required by some entities.
The main institutions that regulate government accounting are:
1. Comptroller General of the Republic.
2. National Public Accounting Office.
3. National Budget Office.
4. Federation of Colleges of Public Accountants.
5. Integrated Management and Control System of Public Finances.
STRUCTURE OF PUBLIC ADMINISTRATION: CENTRAL,
DECENTRALIZED AND AUTONOMOUS INSTITUTES:
Levels of Public Administration:
- National Public Administration: It is governed by the provisions of the Organic Law of
Public Administration, this Law created with the purpose of expanding and organizing the
administration of the State taking into account the organization and competence of public
powers, established in the Constitution in a decentralized manner. , regulating administrative
policies and establishing basic standards on public files and records.
The Public Administration is an organization that is made up of state legal entities
(entities) and their bodies, as specified in the Organic Law of Public Administration Art
15.
- Central Public Administration: According to Article 45 of the Organic Law of Public
Administration. The highest management bodies of the Central public administration are: The
President of the Republic, the Executive Vice President, the Council of Ministers, the ministers
and the vice ministers. They are superior consultative bodies of the Central Public
Administration, the Attorney General's Office, the Council of State, the Defense Council of the
Nation, the sectoral cabinets and the ministerial cabinets.
- The President of the Republic: The executive power resides in the president who has,
among his administrative functions, the management of the National Public Treasury: Decree
additional credits, prior authorization from the national assembly, negotiate national loans,
celebrate contracts of national interest, appoint the attorney, set the number of ministers among
4
others.
- The Executive Vice President: (Administrative Powers) Within his administrative
functions, he has the coordination of the national public administration in accordance with the
instructions of the president. Preside over the Council of Ministers with prior authorization from
the President, coordinate relations with the National Assembly, among others.
- Ministers and Vice Ministers: According to Art. 242 of the CNRBV, the Ministers are
direct organs of the President, meeting together with the Vice President they form the Council
of Ministers, they are responsible for their own resolutions jointly, that is, no minister can hide
behind others, their actions are governed by the Law Organic of the Central Administration,
currently the formation of the ministries is as follows:
Ministry of Interior and Justice, Ministry of Foreign Affairs, Ministry of Finance,
Ministry of Defense, Ministry of Education, Culture and Sports, Ministry of Higher
Education, Ministry of Health and Social Development, Ministry of Labor , pp Ministry
of Infrastructure, pp Ministry of Energy and Mines, pp Ministry of the Environment and
Natural Resources, pp Ministry of Planning and Development, pp Ministry of Science
and Technology, pp Ministry of the Secretary of the Presidency.
The management of resources in the ministries comes from the quota assigned to them from
the total national Budget, it consists of two stages, the first is a formulation and the second is
execution. Which they distribute to their departments through Payment Orders, which are
deposited in a State financial entity. Since 2006, the formulation and execution of the budget in
the ministries is being carried out through the preparation of projects; only approved projects
are those that will receive resources.
- Decentralized Public Administration: The decentralization of Public Administration is
developed based on the principle of simplicity in administrative procedures, for this purpose the
Law of Simplification of Administrative Procedures was created, it was specifically intended to
develop, in detail, the principle of simplification in order to rationalize the procedures carried
out by individuals before the Public Administration, to improve their efficiency, usefulness and
speed, as well as reduce operating expenses.
Article 30 LOAP "With the principle of deepening democracy and increasing the efficiency
and effectiveness of the management of the Public Administration, public powers and services
may be decentralized from the Republic to the states and municipalities, and from the states and
municipalities, of in accordance with the Constitution of the Bolivarian Republic of Venezuela
and the Law.
Entities of Functional Decentralization: It is classified into autonomous Institutes, State
Companies, Parent Companies, State Foundations and associations and civil societies of the
State.
Autonomous institutes: They are official organizations with legal personality, financed by the
State, this figure is created with the purpose of making their performance more agile when
providing solutions, without having to resort to a central level. (They do not depend on the
5
decisions of Ministers or Council of Ministers)
For example, INCE and INVIC, that is, they constitute a model of administrative
decentralization. Because they also enjoy autonomy in the management of resources, they are
subject to reporting to the Comptroller General of the Republic. Its creation is by law since the
1961 Constitution and is in charge of the Legislative Branch.
State Companies: Art. 100 of the LOAP. "State companies are commercial companies in
which the Republic, the states, the metropolitan districts and the municipalities, or any of the
functionally decentralized entities referred to in this Law, alone or jointly, have a participation
greater than fifty percent." percent of the share capital
Parent Companies: According to Art. 105 of LOAP, the operation refers to the existing
linkage of several State companies in the same sector and these can be created by the President,
Governors and Mayors.
State Foundations: According to Art. 108 of the LOAP, Foundations are organizations that
operate with State assets (greater than 50%), which are considered of public utility, due to their
artistic, scientific or literary nature, for example the Simón Bolívar Center.
Associations and Civil Societies of the State: According to the LOAP, in this case the
participation of the State is in the capacity of Partner or member with a contribution of fifty
percent or more of the capital, they must be authorized by the President of the Republic, by
decree. or through a resolution issued by the highest functionally decentralized leader.
State Public Administration: The States are autonomous entities, with full legal personality,
obliged to maintain independence, sovereignty and national integrity and to comply with the
Constitution of the Republic. This political, administrative, legal and tax autonomy has its limits
in the Constitution. , regarding the exercise of powers.
According to Art. 160 of CRBV, the administration of the States corresponds to the
governors, their management will be supervised by the State Comptroller, the legislative
functions will be in charge of the Legislative Council, the Planning and Coordination Councils
of Public Policies will act to coordinate decentralization policies.
Public Administration of Metropolitan Districts: Metropolitan districts arise when two or
more municipalities wish to unite either to share the same economic, social or physical activity.
They may be from the same federal entity or a different one, which will be evaluated by the
National Assembly. For example, the Metropolitan District of Caracas (formed by the State of
Miranda and the Capital District). The administration of the Metropolitan Districts will be
carried out taking into account population conditions, economic and social development,
according to Art. 172 CNRBV, metropolitan powers will be assumed by the governing bodies
of the respective metropolitan district.
Public Administration of the Municipalities: The administration of the municipalities
corresponds to the Mayor, the control and surveillance of income and expenses corresponds to
the municipal Comptroller, which enjoys organic autonomy according to the Organic Law of
Municipal Regime, the legislative power corresponds to the council. made up of councilors.
6
CENTRAL AND DECENTRALIZED ADMINISTRATION REGIME
According to article 1 and 2 it tells us: Organic Law of Municipal Regime
Article 1: The Central Public Administration is made up of the Presidency of the
Republic, the Vice Presidency of the Republic, the Ministries and other bodies created
or that will be created in accordance with the law.
Article 2: The bodies that make up the Central Public Administration will be internally
regulated by an Organic Regulation, which must be decreed by the President of the
Republic in the Council of Ministers.
CENTRAL PUBLIC ADMINISTRATION
The Central Public Administration is the set of bodies hierarchically dependent on the
President of the Republic, in his capacity as Head of the National Executive, whose acts
are attributed to the Republic, considered as the personification of the State.
7
GOVERNMENT ACCOUNTING GUIDE 2
8
3. Produce financial information necessary for decision-making by those responsible for public
financial management and for third parties interested in it.
4. Present the accounting information, the financial statements and the respective supporting
documentation, organized in such a way as to facilitate the exercise of control and internal or
external audit.
5. Provide information necessary for the formation of national accounts
CHARACTERISTICS: Which are established in Article 123, 124 and 125 of the Organic Law
of the Financial Administration of the Public Sector, which are specified below:
The Public Accounting System:
* It will be unique, integrated and applicable to all organs of the Republic and its functionally
decentralized entities;
* It will be based on the general accounting standards issued by the Comptroller General of the
Republic and on other generally accepted accounting principles valid for the public sector.
* Accounting will be kept in books, records and with the methodology prescribed by the
National Public Accounting Office and will be aimed at determining the costs of public
production.
* The Public Accounting System may be supported by computer media. The regulations of this
Law will establish the integration, security and control requirements of the system.
* By computer means, receipts can be generated, documents and information processed and
transmitted, and the Journal and Ledger books and other auxiliary books produced. The
regulations of this Law will establish the security and control mechanisms that guarantee the
integrity and security of documents and information.
IMPORTANCE: Its importance is based on the fact that it systematically and structurally
produces quantitative information, expressed in monetary units, truthful, useful and timely
about the transactions carried out by an economic entity and certain identifiable and
quantifiable economic events that affect it, all with the aim of facilitate the decision-making
process in relation to said economic entity.
2) Entities involved in the execution of the Public Accounting System.
* The Republic
The states
* The Metropolitan District of Caracas
* The districts
The municipalities
*
The autonomous institutes
* State legal entities of public law
* * The commercial companies in which the Republic or the other persons to whom
referred to in this article have participation equal to or greater than fifty to fifty percent of the
share capital
* Foundations, civil associations and other institutions established with funds
9
public or directed by some of the people referred to in this article
3) Legal, Regulatory and Sublegal Standards applicable to the Public Accounting
System:
Constitutional Norms:
* Organic Law of the Financial Administration of the Public Sector (public credit system,
public accounting system, treasury system).
* Organic Law of the Comptroller General of the Republic and the National Fiscal Control
System.
* Regulations of the Organic Law of the Comptroller General of the Republic.
* Reform of the Regulation of the Organic Law of the Comptroller General of the Republic.
* The Magna Carta and all organic, state laws and municipal ordinances
* Law against Corruption.
* Organic Law of National Public Finance.
* Partial Regulation No. 1, 2, 3 and 4 of the Organic Law of the Financial Administration of the
Public Sector.
* LOAFSP Partial Reform Law of 09/05/2000 of GO 37029
* Partial Reform Law of the LOAFSP of 05/31/2005 published in GO 38.198
*LOAFSP Regulations
* Accounting System for National Public Power Agencies. Instructions Applicable to the 2001
Expenditure Budget. g. EITHER. 37228 of 06/27/2001
* General Accounting Standards of the Comptroller General of the Republic and the National
Superintendency of Internal Control and Public Accounting.
4) Systems related and connected to the Public Accounting System.
* SIGECOF (Comprehensive System of Management and Control of Public Finances)
applicable to the organizations of the National Public Power,
* The Fiscal Accounting System for States and Municipalities (Publications 20 and 21 of the
Comptroller General of the Republic,
* The OCEPRE Single Account Plan, for decentralized entities, etc.
* Treasury System and Public Credit System.
5) Differences and similarities between government accounting and that of the private
sector.
PRIVATE SECTOR : composed of families and companies and with their determined
economic behavior.
PUBLIC SECTOR: made up of all legal forms that the government organizes with the aim of
satisfying public needs.
Regarding accounting principles, the following similarities occur:
1. The Entity as a principle is the same for both types of Accounting, there is no type of
difference since it pursues the same purpose.
1
0
2. Continuity for private accounting is called going concern, which also follows the same
meaning.
3. The Registry is the accounting realization that quantifies in monetary terms the
operations carried out by the entity, which in both accounts is carried out or recorded at the time
the transaction occurs.
4. The Accounting Period has the same meaning for both accounts, the information
presented about your activities during periods of time.
5. Sufficient Disclosure continues to have the same purpose for both accounts, both must
have sufficient information necessary for decision making, with respect to the results obtained
and reflected in the financial statements.
6. Relative Importance, financial information concerning what is significantly sufficient to
affect economic evaluations and decisions, will be included in the accounting.
7. Prudence is needed for this principle in both accountings since there are uncertainties
that surround accounting transactions, where the recognition of what could be the best
alternative that provides the most conservative result must be adopted.
8. Uniformity, all financial or accounting information regarding transactions and financial
statements presented by the two types of accounting must comply with the same application of
accounting policies, so that they can be compared.
9. Economic Duality in both accounts requires the accounting representation of the
resources available and the purpose of those resources and how they were obtained. It is also
known as Double Entry.
10. The Acquisition Price called Historical Value or Cost Value in private accounting,
everything must be recorded at its original value.
6) ACCOUNTING AS AN INFORMATION INSTRUMENT.
Accounting, as a science, constitutes an information system that emits structured and
relevant data from the different entities that make up the economic reality, such as families,
companies, the public sector and the nation. These data, after being analyzed and interpreted,
are used by economic subjects to control the resources they have and take the appropriate
measures to make them more fruitful and, in any case, to avoid a deficit situation that would
endanger their survival.
What does it report?
In principle, these data indicate the economic and financial resources available to the
economic unit under analysis.
For this information to be useful to those who use it, it must satisfy a series of
requirements, although sometimes in practice it is not easy to meet them; these are:
* Objective. Given the same data, any user must interpret the same thing.
* Credible. The information must be reliable.
* Timely. A piece of information that arrives at the wrong time is worth nothing, or little.
Therefore,
1
1
The information must be issued on time.
* Clear and affordable. If the accounting information is only directed to experts in this
matter,
Its purpose is very restricted.
* Complete. It should not hide parts of the economic reality.
* Some economic facts cannot be measured exactly, so it will be necessary to
settle for an approximation.
The accounting information is prepared following a specific method, which collects,
classifies and synthesizes the events that may be important to its users. The consequences of
these events will generally be expressed in monetary units.
The data thus obtained are reflected in summary tables that are the financial or
accounting statements.
To whom?
The information that is disseminated outside the economic unit must be useful for the
different economic agents to increase their possibilities of accumulating resources. Among
them could be creditors, workers, the State Public Administration (especially in matters of
taxes), financial entities that collaborate with the entity, etc.
7) Accountant Ethics
The Public Accountant is bound by the following ethical principles: Integrity,
Objectivity, Independence, Responsibility, Confidentiality, Observance of regulatory
provisions, Competence and professional updating, Dissemination and Collaboration, Respect
among colleagues, and Ethical conduct.
x Integrity is complying with all ethical principles that follow below and including
comply beyond what the law requires. Integrity is being upright, sincere and fair. It is being
honest with the environment.
X Objectivity is using reason and logic to make decisions and not the heart, much less the
feelings. It is being honest with yourself and others. Objectivity is being equitable, it is that of
God for God, that of men for men and that of Caesar for Caesar.
X Independence is to be sincere with others, implying them that there are no family ties, neither
friendly, much less particular interests that incline opinions for or against. Independence is
having criteria free of social ties, it is the ESSENCE OF THE AUDIT. This is what prohibits us
from acting as judge and party. It is the only one of all the principles that PUBLIC ACTIVITY
implies, since the rest of the principles cover more about PRIVATE ACTIVITY. Public activity
is when the positions of Statutory Auditor, External Auditor and Certificate of Financial
Statements are held. Private activity is when positions of accounting, tax or administrative
advisor are held.
1
2
8) Ethics and criticism for the decision-making process in the accounting area of the
nation's public entities.
The topic of ETHICS and TRANSPARENCY in public management includes the
modalities to regulate the conduct of representatives or agents of public power, confronting it
with the fundamental values that make up society.
The topic of ethics, whether in public management or in the private sector, is invariably
linked to that of transparency since this synthesizes the true remedy to implement probity in
interpersonal relationships and especially the relationships between the State and citizens as
well as also between officials and those who offer or demand their services.
9) Requirements of the Public Accounting System:
Within the requirements established in Chapter III Partial Regulation No. 4 of the Organic
Law of the Financial Administration of the Public Sector, on the Public Accounting System, we
have:
* All economic and financial transactions that affect the assets of the Republic must be
recorded.
* Economic transactions must be registered only once.
* The classifiers used by SIGECOF must allow adjustment, ensuring the unification of the
information.
* The opening of the financial year will contain the previous balances and information from the
current Budget Law.
* Only the accounting income of the accrued and the collected will be recorded
1
3
GUIDE 3 TO GOVERNMENT ACCOUNTING
Unit III:
Planning in the Public Sector.
The Budget in the Public Sector.
Budget: The National Budget Office (ONAPRE) defines the budget as the system through
which the public production (good or service) of an institution, sector, region is prepared,
approved, coordinated, based on the development policies provided for in the plans. It must
expressly include all the elements of the programming (objectives, goals, volumes of work, real
and financial resources) that justify and guarantee the achievement of the planned objectives.
Importance of the Budget: According to the guidelines of the ABC Professional Training
Center in relation to Budget Administration as a Management Instrument, the following points
out:
1. It is a planning instrument
❖ It allows you to specify the objectives and goals set out in the annual operating plan.
❖ It allows the formal allocation of the resources necessary for the execution of the
goals and objectives set out in the Plan.
2. It is an instrument of Government
> It allows deciding in advance the application of scarce resources to achieve the
priority purposes for the economic and social development of the country.
> Facilitates decision making for the highest authorities of the organization.
3. It is an instrument of administration and control.
❖ Point out the goals of each program.
❖ Indicates the volumes of work for each activity.
❖ Point out the works of each project.
The General Lines of Economic and Social Development of the Nation
Likewise, the General Guidelines of the Nation's Economic and Social Development Plan
establishes as one of its objectives the design and implementation of the National Planning
System.
Such implementation requires aligning and reconciling planning processes with budgeting
processes. It is necessary to link a vision that guides the design and formulation of public
policies with the process of direction and institutional channeling of public policies, with the
physical and financial execution and with the monitoring, evaluation and control, in order to
1
4
improve government action. (Previously: Ministry of Planning and Development, 2001.)
Regulation No. 1 of the Organic Law of the Financial Administration of the Public Sector, on
the Budget System.
Chapter I General Provisions
Purpose and subjects of this Regulation
Article 1. The purpose of this Regulation is to establish the complementary rules for the
development of the budget process that will be complied with by the bodies and entities subject
to the Organic Law of the Financial Administration of the Public Sector.
Budgeting technique
Article 2. The bodies and entities subject to the Organic Law of the Financial Administration
of the Public Sector will formulate and apply the technique of preparing the budget by
programs and the categories equivalent to programs, subprograms, projects, activities and
works, and will apply it in the remaining stages. or phases of the budget process, in accordance
with the instructions issued for this purpose by the National Budget Office.
In those cases of creation or modification of the definition, name and classification of
programs, categories equivalent to programs, subprograms and projects proposed by the
respective organizations, they must be sent to the National Budget Office before April 30 of
each year for your approval.
Budget programming areas
Article 3. The budgets of the bodies and entities subject to the Organic Law of the Financial
Administration of the Public Sector will express the scope of institutional programming, and
when applicable, the scope of sectoral and regional budget programming, in accordance with
the standards and technical instructions issued by the National Budget Office, in coordination
with the Ministry of Planning and Development.
Actors of the National Fiscal Control System
1
5
Unit IV
The Integrated System for Management and Control of Public Finances (SIGECOF). IV.
THE SIGECOF
The integrated system of management and control of public finances, as a central system of
financial administration, includes all the processes involved in the formulation, obtaining,
allocation, use, registration and evaluation of the financial resources of the State, integrated into
the same base. of data, as a single and logical computer system, which defines standards and
procedures, incorporating relevant self-control validations, all of which allows the registration
and processing of budgetary, accounting and financial operations of the public sector, regulated
by the LOAF and other laws. applicable.
The acronym SIGE.CO.F. They mean:
Integrated system
- Model developed according to the “systems” theory, as an open system.
- The systems and subsystems that make it up are interrelated with each other.
- The Principles and Conventions guarantee their integration.
- It assumes a modular and level structure (Central – Local).
Management
- It is linked to all administrative, budgetary, accounting and financial activities.
- Generates timely, simplified, relevant and fast information.
- It is an efficient support for the decision-making process.
- Those responsible for administrative management can perform with transparency,
effectiveness, efficiency and be held accountable appropriately.
CONTROL
- Facilitates the control process of the administration of public resources.
- Makes the process of evaluating compliance with objectives and goals viable.
- Incorporates “validations” in the workflow and “routes” as support for internal control and
auditing.
- It allows the application of management indicators for monitoring, self-evaluation and
external control of public management.
1
6
resources in the sector. public, whose central purpose is the efficient management of the same
for the fulfillment of the supreme purposes of the State."
The SIGECOF will be administered by the National Public Accounting Office (ONCOP):
maintenance; integrity; training and training of officials; make modifications, adjustments or
improvements to the SIGECOF, in coordination with the other governing bodies of the AFSP
(R-4: Chapter VI: articles 31 and 32).
The integrated public sector financial administration system (SIAF).
There are multiple administrative, budgetary, accounting and financial operations, of
small or large volume that require a single, integrated, transparent, fast, reliable computer
system, that is, a government financial administration system, which allows determining and
evaluating the timely and properly, the correct investment of resources and the adequate
occurrence of public expenses; all of this within the framework of the basic legal scope
applicable in the administrative, social, economic and financial area of the public sector, taking
into account the hierarchical and functional structure of the State.
The government financial administration system integrates the initial processes of the
national planning and budgeting system, supported by the “project budget” modality (even
though in some institutions the program budget is still managed), continuing with the
subsequent processes of the Administrative Distribution, Programming and Execution, through
budgetary and financial records (including those that do not have a budgetary impact), coupled
with the process of fiscal control and management evaluation.
In this order of ideas, the following concept is presented in the SIGECOF Manuals:
“An integrated financial administration system is understood to be the set of laws,
regulations and procedures aimed at obtaining, assigning, using, registering and evaluating the
financial resources of the State, whose purpose is the efficiency of their management to satisfy
collective needs.”
And adds:
“...to guarantee “integration” in the system it is essential to assume: the entities and
organizational units act absolutely interrelated; a single coordinating body (MF);
coherence in the principles, rules and procedures in force in the system; a single
database with all information on public finance management; “logical system that
defines rules and incorporates validations that facilitates control.”
GOVERNMENT ACCOUNTING GUIDE 5
Unit V:
1
7
Fiscal Control is the set of activities carried out by competent institutions to achieve, through
various systems and procedures, the regularity and correctness of the administration of Public
Assets (CRBV).
History of Fiscal Control in Venezuela
Fiscal Control in Venezuela.
“It fundamentally falls on the acts of administration, custody or management of public funds
and assets and has traditionally been the responsibility of the Supreme Audit Institutions of the
respective countries.” Thus, it is common to conceptualize Fiscal Control as that which is
carried out on income, expenses and public assets by a public body specialized in this type of
control.
Fiscal Control in Venezuela can be said to begin with the creation of the Royal Treasury in
the city of Coro in 1529, when three royal officials had the delicate function of controlling the
Treasury of the Spanish Crown.
Colonial period
– The Ark of the three keys: Royal Decree of 2-17-1531
– The Courts of Accounts: Royal Decree of 8-24-1605
– The Army and Royal Treasury Administration, Court of Accounts: Royal Decree of 8-12
1776.
•War of Independence
– Constitutional changes: Constitution of 1811.
– The General Treasury Accounting Office: decree of 10-6-1821
– The organization of the Public Treasury in Gran Colombia: Decree of 3-8-1827
•Republican Stage
– The General Treasury and the Court of Accounts: Law of 10-14-1830
– The General Treasury Accounting Office and the Court of Accounts: Decrees of 10-17-1856
and 6-24-1858; Treasury Code of 20-2-1873; Organic Law of the National Treasury of 06-4-
1918.
– Comptroller General of the Nation:
• Creation: Organic Law of the National Treasury of 1938
• Constitutional rank: Constitution of the year 1947
• Constitution of the Bolivarian Republic of Venezuela 1999.
1
8
to the achievement of the general objectives of the different entities and organizations of the
public sector, as well as the proper functioning of the Public Administration.
Legal base
Constitution of the Bolivarian Republic of Venezuela. Article 290 (Official Gazette No.
5,908 Extraordinary of 02/19/09).
Organic Law of the Comptroller General of the Republic and the National Fiscal Control
System. Article 4 and Chapter I of Title II (Official Gazette No. 37,347 of 12/17/01)
Regulation of the Organic Law of the Comptroller General of the Republic and the
National Fiscal Control System, Chapter II (Official Gazette No. 39,240 of 08/12/09)
Standards for the Coordinated Operation of the External and Internal Control Systems
(Official Gazette No. 36,229 of 06/17/97)
Organic Law of the Comptroller General of the Republic and the National Fiscal Control
System
For the purposes of this Law, the National Fiscal Control System is understood to be the set
of bodies, structures, resources and processes that, integrated under the leadership of the
Comptroller General of the Republic, interact in coordination in order to achieve unity of
direction. of the control systems and procedures that contribute to the achievement of the
general objectives of the different entities and organizations subject to this Law, as well as the
proper functioning of the Public Administration. Art. 4 LOCGRSNCF.
Goals
• Strengthen the capacity of the State to effectively execute its government function.
• Achieve transparency and efficiency in the management of public sector resources and,
• Establish responsibility for the commission of irregularities related to the
administration, management or custody of public assets or funds, by the public bodies
and entities and the legal or natural persons indicated by the Law.
•
Beginning
• The financial capacity and budgetary independence of the bodies in charge of fiscal
control, which allow them to efficiently carry out their functions.
• The partisan apoliticism of supervisory management at all strata and levels of fiscal
control.
• The technical nature in the exercise of fiscal control.
• The opportunity in the exercise of fiscal control and in the presentation of results.
• The economy in the exercise of fiscal control, so that its cost does not exceed the
expected benefits.
• Speed in fiscal control actions without hindering the management of the Public
Administration.
1
9
• Citizen participation in comptroller management.
2
0