LAW 87 OF 1993
Official Gazette No. 41120 of 29 November 1993
By establishing rules for the exercise of internal control are set in the entities and state agencies and Summary dictate other provisions
CONGRESS OF COLOMBIA DECREES
ARTICLE 1o. DEFINITION OF INTERNAL CONTROL. It is understood by internal control integrated the organizational scheme and all the plans, methods, principles, standards, procedures and mechanisms of verification and evaluation adopted by an entity in order to ensure system that all activities, operations and performances, as well as information management and resources, are conducted in accordance with the constitutional and legal regulations in force within the policies set by management and attention to the goals or objectives.
The exercise of internal control should consult the principles of equality, morality, efficiency, economy, speed, impartiality, publicity and valuation of environmental costs. Consequently, it must be designed and arranged so that their exercise is intrinsic to the development of the functions of all existing positions in the state, and in particular those assigned to those with command responsibility.
PARÁGRAFO. Internal control is expressed through policies approved by the levels of management and administration of the respective entities and will be fulfilled in full scale of the administrative structure, through the development and application of management techniques, monitoring and evaluation of administrative regulations of operating manuals and procedures, information systems and program selection, induction and training of personnel. Effective Notes
. OBJECTIVES OF INTERNAL CONTROL SYSTEM. Heeding the constitutional principles that should characterize public administration, design and development of internal control system will be geared to achieving the following objectives:
a) Protect the resources of the organization, seeking its proper administration against possible risks that affect them;
B) To ensure the effectiveness, efficiency and economy in all operations, promoting and facilitating the correct execution of the functions and activities defined to achieve the institutional mission;
C) Ensure that all activities and resources of the organization are aimed at meeting the objectives of the entity;
D) Ensure proper evaluation and monitoring of organizational management;
E) Ensuring the timeliness and reliability of information and its records;
F) To define and implement measures to prevent risks, detect and correct deviations that occur in the organization and that may affect the achievement of its objectives;
G) Ensure that the internal control system have its own mechanisms of verification and evaluation;
H) To ensure that the entity has planning processes and mechanisms for the design and organizational development, according to its nature and characteristics;
ARTICLE 3. FEATURES OF INTERNAL CONTROL. They are characteristic of the following Internal Control:
a) The Internal Control System is an integral part of the accounting, financial systems, planning, and operational information of the respective entity;
B) Corresponds to the highest authority of the agency or entity responsible for establishing, maintaining and improving the internal control system, which should be appropriate to the nature, structure and mission of the organization;
C) In every area of the organization, the official in charge of directing is responsible for internal control to his immediate supervisor according to the levels of authority established in each entity;
D) The Internal Control Unit, or his substitute, is responsible for independently assessing the internal control system of the entity and propose the legal representative of the agency in the recommendations for improvement;
E) All transactions of entities must register with accurate, truthful and timely manner, so as to allow preparing operational, administrative and financial reports.
ARTICLE 4. ELEMENTS FOR INTERNAL CONTROL SYSTEM. All entity under the responsibility of its management should at least implement the following aspects that should guide the implementation of internal control.
A) Setting objectives and targets both general and specific, and the formulation of operational plans as necessary;
B) Definition of policies and action guidelines and procedures for the execution of processes;
C) Adoption of a system suitable organization to implement plans;
D) precise delineation of authority and responsibility levels;
E) Adoption of standards for the protection and rational use of resources;
F) Management and administration of staff under a merit system and sanctions;
G) Implementation of the recommendations resulting from the evaluation of internal control;
H) Establishing mechanisms to facilitate citizen entities management controls;
I) Establishment of modern information systems that facilitate the management and control;
J) Organization of reliable methods for management evaluation;
K) Establishment of induction programs, training and retraining of managers and other staff of the entity;
L) Simplification and updating of standards and procedures;
The 5th ITEM. SCOPE. This Law all agencies and entities of the branches of government in different orders and levels as well as the electoral organization in control agencies, public establishments, industrial and commercial state enterprises, shall apply the mixed economy in which the state holds 90% or more of capital in the Bank of the Republic and budgetary funds origin.
ARTICLE 6o. LIABILITY OF INTERNAL CONTROL. The establishment and development of the Internal Control System in organizations and public bodies, will be the responsibility of the legal representative or manager corresponding maximum. However, the application of methods and procedures as well as the quality, efficiency and effectiveness of internal control, also will be the responsibility of the heads of each of the various offices of the entities and agencies.
ARTICLE 7. RECRUITMENT OF INTERNAL CONTROL SERVICE WITH PRIVATE COMPANIES. Public entities may contract with private Colombian enterprises, of recognized ability and experience, the service organization internal control system and the performance of internal audits. Their contracts will be for a fixed term, not exceeding three years and shall be chosen on merit in the following cases:
a) When the availability of technical, financial and human resources do not permit the entity to establish Internal Control System directly.
B) Where technical expertise required.
C) If for reasons of economic convenience finds the most favorable.
Excepted from this power security agencies and national defense.
PARÁGRAFO. In companies of public services in the Capital District, where the Fiscal Control exercised by the Revisorías was abolished, the staff of the same will have priority to be relocated without interruption in the exercise of internal control of the respective companies and can not be inability to claim these effects.
Not possible relocation of staff, companies apply in accordance with the internal labor regulations, the corresponding compensation.
Article 8. EVALUATION AND MANAGEMENT CONTROL IN ORGANIZATIONS. As part of the implementation of an appropriate system of internal control the legal representative in each organization should ensure the formal establishment of an evaluation system and management control, according to the characteristics of the entity and in accordance with the provisions of Article 343 of the National and other applicable legal provisions Constitution.
Article 9. DEFINITION OF THE UNIT OR OFFICE COORDINATION OF INTERNAL CONTROL. It is one of the components of Internal Control System, managerial or executive level, responsible for measuring and evaluating the efficiency, effectiveness and economy of other controls, advising management on the continuity of the administrative process, the revaluation of the plans established and the introduction of necessary corrections to the fulfillment of the goals or objectives.
PARÁGRAFO. As mechanisms of verification and evaluation of internal control standards generally accepted auditing, selection of performance indicators, management reports and any other modern control mechanism involving the use of the best technology, efficiency and safety are used.
ARTICLE 10. HEAD OF THE UNIT OR OFFICE COORDINATION OF INTERNAL CONTROL. For verification and ongoing evaluation of internal control system, state entities designated as advisor, coordinator, internal auditor or similar charge, to a public official to be assigned to senior positions and designated under the terms of this Act. || |
ARTICLE 11. APPOINTMENT OF CHIEF OF UNIT OR OFFICE COORDINATION OF INTERNAL CONTROL. For verification and ongoing evaluation of the control system, the President of the Republic shall appoint in state agencies of the executive branch of the national order the head of the Unit office internal control or his substitute, who shall be freely appointed and removal.
In the case of entities of the executive branch of territorial order, the appointment will be made by the highest administrative authority of the respective territorial entity. This official will be appointed for a fixed term of four years, half of his term of mayor or governor.
For verification and ongoing evaluation of the Control System, the President of the Republic shall appoint in state agencies of the executive branch of the national order the head of the Unit office internal control or his substitute, who will free appointment and removal.
In the case of entities of the executive branch of territorial order, the appointment will be made by the highest administrative authority of the respective territorial entity. This official will be appointed for a fixed term of four years, half of his term of mayor or governor. Effective Jurisprudence
. For the post of advisor, coordinator or internal auditor must demonstrate professional training and experience of at least three (3) years in matters of internal control. PARAGRAPH 2.
. The internal auditor, or his substitute, will have multidisciplinary staff assigned by the head of the agency or entity, according to the nature of the functions. The selection of such personnel do not necessarily involve an increase in the existing plant charges. Effective Notes
ARTICLE 12. FUNCTIONS OF INTERNAL AUDITORS. The functions of the advisor, coordinator, internal, or the like auditor, the following:
a) Plan, direct and organize the verification and evaluation of internal control system;
B) Verify that the Internal Control System is formally established within the organization and that its exercise is intrinsic to the development of the functions of all charges and in particular those with command responsibility;
C) Verify that the controls defined for processes and activities of the organization are met by those responsible for their implementation and in particular that the areas or employees responsible for implementing the disciplinary system adequately perform this function;
D) Verify that the controls associated with each and every one of the activities of the organization are adequately defined, are appropriate and permanently improve, according to the evolution of the entity;
E) To ensure compliance with laws, regulations, policies, procedures, plans, programs, projects and goals of the organization and recommend the necessary adjustments;
F) Provide support to managers in the decision-making process, so that the expected results are achieved;
G) Check the processes related to the management of resources, goods and information systems of the entity and recommend necessary corrections;
H) To promote organization-wide training of a culture of control that contribute to continuous improvement in fulfilling the institutional mission;
I) evaluate and verify the implementation of mechanisms for citizen participation in development of constitutional and legal mandate, design the corresponding entity;
J) Provide ongoing information to managers about the state of internal control within the entity, realizing the weaknesses and failures of compliance;
K) Verify that the respective measures recommended are implemented;
L) other duties assigned by the head of the agency or entity, according to the nature of their duties.
PARÁGRAFO. In no case may the advisor, coordinator, internal auditor or his substitute, participate in administrative proceedings of the institution through authorizations or for endorsements.
ITEM 13. COORDINATING COMMITTEE INTERNAL CONTROL SYSTEM. Agencies and entities that the 5th article refers to., Of this Law shall establish at the highest hierarchical level a Coordination Committee of Internal Control System, according to the nature of the organization's own functions.
ITEM 14. REPORT OF OFFICIALS OF INTERNAL CONTROL. The head of the Unit of the Office of Internal Control or the person acting in an agency of the executive branch of the national order will be a public servant appointed and removed, appointed by the President of the Republic.
This public servant, without prejudice to other legal obligations, shall report to the control bodies possible acts of corruption and irregularities have encountered in carrying out their duties. Effective Notes
The head of the Unit of the Office of Internal Control shall publish every four (4) months on the website of the entity, a detailed report on the state of internal control of the entity, under penalty of incurring serious disciplinary offense .
Reports of internal control officials have probative value in disciplinary, administrative, judicial and prosecutorial processes when the relevant authorities so request.
PARÁGRAFO TRANSIENT. To adjust the period covered by this article, responsible for internal control that shall be holding the position as of December 31, 2011, will remain the same until the Governor or Mayor make the appointment of a new official, according to the schedule in this article. Effective Notes
ARTICLE 15. TERM OF APPLICATION. For the purposes of the provisions of this Act the directors of public entities have a period of six (6) months from the effective date of this Act, to determine, implement and supplement the internal control system in their respective agencies or entities. In municipalities with less than fifteen thousand (15,000) inhabitants and whose annual income does not exceed fifteen thousand (1,5.000) minimum monthly wages, this period shall be twelve (12) months.
Also those who already exercise some form of internal control should be redefined in terms of this law.
ARTICLE 16. EFFECTIVE DATE. This law applies from the date of its enactment.
The President of the Senate of the Republic, JORGE RAMON ELIAS
The Secretary General of the Senate of the Republic, PUMAREJO VEGA PEDRO
The President of the Chamber Representatives, FRANCISCO JOSÉ
The Secretary General of the Chamber Representatives, DIEGO VIVAS
Published and executed.
Given in Bogota, DC, on 29 November 1993.
César Gaviria Trujillo Minister of Finance and Public Credit, RUDOLF HOMMES