87 OF 1993
Official Journal No. 41.120 of 29 November 1993
By which rules are established for the exercise of internal control in the entities and agencies of the State and other provisions are dictated
THE CONGRESS OF COLOMBIA,
ARTICLE 1o. DEFINITION OF INTERNAL CONTROL. Internal control means the system consisting of the organisation scheme and the set of plans, methods, principles, rules, procedures and mechanisms for verification and evaluation adopted by a entity, 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 norms in force within the policies laid down in the direction and attention to the intended goals or objectives.
The exercise of internal control should consult the principles of equality, morality, efficiency, economy, speed, impartiality, publicity and environmental cost assessment. Accordingly, it should be designed and organised in such a way that its exercise is intrinsic to the development of the functions of all the positions existing in the entity, and in particular those assigned to those who have the responsibility of the command.
PARAGRAFO. Internal control shall be expressed through the policies approved by the management and administration levels of the respective entities and shall be fulfilled throughout the scale of the administrative structure, by the elaboration and implementation of management techniques, verification and evaluation of administrative regulations, of manuals of functions and procedures, of information systems and of programs of selection, induction and training of personnel.
ARTICLE 2o. OBJECTIVES OF THE INTERNAL CONTROL SYSTEM. In accordance with the constitutional principles to be characterized by public administration, the design and development of the Internal Control System will be directed to the achievement of the following objectives: fundamentals:
a) Protect the resources of the organization, seeking its proper administration in the face of possible risks that affect them;
b) Ensure effectiveness, efficiency and economy in all operations, promoting and facilitating the proper execution of the functions and activities defined for the achievement of the institutional mission;
c) Velar because all the activities and resources of the organization are directed to the fulfillment of the goals of the entity;
d) Ensure the correct evaluation and monitoring of organizational management;
e) Ensuring the opportunity and reliability of information and their records;
f) Define and implement measures to prevent risks, detect and correct deviations that occur in the organization and may affect the achievement of their objectives;
g) Ensure that the internal control system has its own verification and assessment mechanisms;
h) Velar because the entity has appropriate planning processes and mechanisms for organizational design and development, according to its nature and characteristics;
ARTICLE 3o. INTERNAL CONTROL FEATURES. These are features of the Internal Control:
a) The Internal Control System forms an integral part of the accounting, financial, planning, information and operational systems of the respective entity;
b) Corresponds to the highest authority of the body or entity, the responsibility to establish, maintain and improve the Internal Control System, which must be appropriate to the nature, structure and mission of the organization;
c) In each area of the organization, the official responsible for directing it is responsible for internal control to its immediate head in accordance with the levels of authority established in each entity;
d) The Internal Control Unit, or who does its own times, is responsible for independently evaluating the Internal Control System of the entity and proposing to the legal representative of the respective body the recommendations to improve it;
e) All transactions of the entities must be recorded in an accurate, truthful and timely manner so as to enable the preparation of operational, administrative and financial reports.
ARTICLE 4. ELEMENTS FOR THE INTERNAL CONTROL SYSTEM. The entire entity under the responsibility of its managers must at least implement the following aspects that must guide the application of internal control.
a) Setting goals and goals both general and specific, as well as formulating the operational plans that are needed;
b) Defining policies as action guides and procedures for process execution;
c) Adoption of an appropriate organization system to execute the plans;
d) Accurate delimitation of authority and levels of responsibility;
e) Adoption of rules for the protection and rational use of resources;
f) Management and administration of personnel in accordance with a merit and sanctions system;
g) Application of recommendations resulting from internal control assessments;
h) Establishment of mechanisms that facilitate citizen control to the management of entities;
i) Establishment of modern information systems to facilitate management and control;
j) Organization of reliable methods for evaluation of management;
k) Establishment of induction, training and updating programmes for managers and other staff of the entity;
l) Simplification and update of rules and procedures;
ARTICLE 5o. [passage omitted] (Prensa Libre, 3 March) Cambo de Aplación. This Law will apply all the agencies and entities of the Public Power Ramas in their different orders and levels, as well as in the electoral organization, in the control agencies, in the establishments public, in the industrial and commercial enterprises of the State, in the mixed economy companies in which the State owns 90% or more of the social capital, in the Bank of the Republic and in the funds of budget origin.
ARTICLE 6o. RESPONSIBILITY FOR INTERNAL CONTROL. The establishment and development of the Internal Control System in public bodies and entities shall be the responsibility of the appropriate legal representative or senior management officer. However, the application of methods and procedures, as well as the quality, efficiency and effectiveness of internal control, will also be the responsibility of the heads of each of the different agencies and agencies.
ARTICLE 7o. CONTRACTING THE INTERNAL CONTROL SERVICE WITH PRIVATE COMPANIES. Public entities will be able to contract with Colombian private companies, of recognized capacity and experience, the service of the organization of the Internal Control System and the exercise of internal audits. Their contracts must be at a fixed term, not more than three years, and must be chosen by merit contest in the following cases:
a) When the availability of technical, economic and human resources does not allow the entity to establish the Internal Control System directly.
b) When specialized technical knowledge is required.
c) When for reasons of economic convenience I will be more favourable.
The national security and defense agencies are exempted from this option.
PARAGRAFO. In the public service companies of the Capital District, where the Fiscal Control exercised by the Advisors was abolished, the staff members will have priority to be relocated without the solution of continuity in the internal control exercise of the respective companies, not being able to claim inability for these effects.
If the relocation of staff is not possible, the companies will apply the corresponding compensation in accordance with the internal labor regime.
ARTICLE 8o. ASSESSMENT AND MANAGEMENT CONTROL IN ORGANISATIONS. As part of the implementation of an appropriate internal control system, the legal representative in each organisation shall ensure the formal establishment of an assessment and control system. management, according to the entity's own characteristics and in accordance with the provisions of Article 343 of the National Constitution and other current legal provisions.
ARTICLE 9o. DEFINITION OF THE UNIT OR OFFICE OF COORDINATION OF INTERNAL CONTROL. It is one of the components of the Internal Control System, of managerial or managerial level, which is responsible for measuring and evaluating the efficiency, effectiveness and economy of the other controls, advising the management on the continuity of the administrative process, the revaluation of the established plans and the introduction of the necessary corrective measures to meet the objectives or objectives.
PARAGRAFO. As internal control verification and assessment mechanisms will be used generally accepted audit standards, performance indicator selection, management reports and any other modern control mechanism involving the use of the most technology, efficiency and security.
ARTICLE 10. HEAD OF THE UNIT OR OFFICE OF COORDINATION OF INTERNAL CONTROL. For the verification and permanent evaluation of the internal control system, the state entities shall designate as an advisor, coordinator, internal auditor or similar position, a public official to be assigned to the higher hierarchical level and designated in the terms of this Act.
ARTICLE 11. DESIGNATION OF THE HEAD OF THE UNIT OR OFFICE OF COORDINATION OF INTERNAL CONTROL. 8o. of Law 1474 of 2011. The new text is as follows: > For the verification and permanent evaluation of the Control System, the President of the Republic will designate in the state entities of the executive branch of the national order the head of the Unit of the control office or who does his or her times, who will be free to be appointed and removed.
In the case of entities of the executive branch of the territorial order, the designation shall be made by the maximum administrative authority of the respective territorial entity. This official shall be appointed for a fixed term of four years, in the middle of the respective term of the mayor or governor.
For the verification and permanent evaluation of the Control System, the President of the Republic shall designate in the state entities of the executive branch of the national order the head of the Unit of the internal control office or who does his times, who will be of free appointment and removal.
In the case of entities of the executive branch of the territorial order, the designation shall be made by the maximum administrative authority of the respective territorial entity. This official will be appointed for a fixed term of four years, in the middle of the respective term of the mayor or governor.
PARAGRAFO 1o. To perform the role of advisor, coordinator, or internal auditor, professional training and minimum experience of three (3) years in internal control matters must be accredited.
PARAGRAFO 2o. The internal auditor, or who does his or her times, will have the multidisciplinary staff assigned to him by the head of the body or entity, according to the nature of the functions of the body or entity. The selection of such staff will not necessarily involve an increase in the existing office.
ARTICLE 12. INTERNAL AUDITOR FUNCTIONS. The following shall be the functions of the advisor, coordinator, internal auditor, or similar:
a) Plan, direct, and organize the verification and evaluation of the 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 the positions and, in particular, those who have responsibility for command;
(c) Verify that the controls defined for the processes and activities of the organisation are carried out by those responsible for their implementation and in particular, that the areas or employees responsible for the application of the disciplinary regime exercise properly this function;
d) Verify that the controls associated with each and every activity of the organization are appropriately defined, appropriate and permanently improved, in accordance with the evolution of the entity;
e) Ensuring compliance with the organization's laws, regulations, policies, procedures, plans, programs, projects and goals, and recommend the necessary adjustments;
f) Support managers in the decision-making process, so that the expected results are obtained;
g) Verify processes related to the management of the entity's resources, assets, and information systems and recommend corrective actions that are necessary;
h) To foster the formation of a culture of control throughout the organization that contributes to the continuous improvement in the fulfillment of the institutional mission;
i) Evaluate and verify the application of the mechanisms of citizen participation, which in the development of the constitutional and legal mandate, design the corresponding entity;
j) Keep managers permanently informed about the state of internal control within the entity, accounting for detected weaknesses and failures in their compliance;
k) Verify that the recommended measures are implemented;
l) Other than the head of the body or entity, in accordance with the character of his/her duties.
PARAGRAFO. In no case, will the advisor, coordinator, internal auditor, or who does his or her times, participate in the entity's administrative procedures through authorizations or endorsements.
ARTICLE 13. COORDINATION COMMITTEE OF THE INTERNAL CONTROL SYSTEM. The bodies and entities referred to in Article 5o., of this Law, shall establish at the highest hierarchical level a Coordination Committee of the Internal Control System, according to the nature of the organization's own functions.
ARTICLE 14. INTERNAL CONTROL OFFICERS ' REPORT. 9o. of Law 1474 of 2011. The new text is as follows: > The head of the Unit of the Internal Control Office or who does his or her times in an entity of the executive branch of the national order will be a public servant of free appointment and removal, appointed by the President of the Republic.
231 of Decree 19 of 2012. The new text is as follows: > This public servant, without prejudice to other legal obligations, shall report to the control bodies any possible acts of corruption and irregularities found in the exercise of his or her duties.
The head of the Unit of the Internal Control Office shall publish every four (4) months on the institution's website, a detailed report on the state of the institution's internal control, or penalty for serious disciplinary misconduct.
The reports of the internal control officers shall have probative value in disciplinary, administrative, judicial and fiscal processes when the relevant authorities so request.
PARAGRAFO TRANSIENT. To adjust the period covered by this article, the Internal Control officers who are holding the charge at December 31, 2011, will remain in the until the Governor or Mayor makes the appointment of the new official, in accordance with the date provided for in this Article.
ARTICLE 15. APPLICATION OF THE APPLICATION. For the purposes of this Law, the directors of the public entities shall have a period of six (6) months from the date of this Law to determine, implement and supplement the internal control system in their respective bodies or entities. In the municipalities with a population of less than fifteen thousand (15,000) inhabitants and whose annual income does not exceed fifteen thousand (1,5,000) monthly minimum legal salaries, this period will be twelve (12) months.
So those who already exercise some kind of internal control must redefine it in the terms of this law.
ARTICLE 16. VALIDITY. This law governs from the date of its promulgation.
The President of the Honorable Senate of the Republic,
JORGE RAMON ELIAS NADER.
The Secretary General of the Honorable Senate of the Republic,
PEDRO PUMAREJO VEGA
The President of the Honourable House,
JOSE JATTIN SAFAR.
The Secretary General of the Honourable House,
DIEGO VIVAS TAFUR.
Publish and Execute.
Dada en Santafe de Bogota, D.C., a 29 November 1993.
CESAR GAVIRIA TRUJILLO
the Minister Of Finance And Public Credit,
RUDOLF HOMMES RODRIGUEZ