comptrollership at your service... 1 approaches to maximize accountability, minimize risks, improve...

1Comptrollership at your service ...

Approaches to Maximize Accountability, Minimize Risks, Improve Transparency, and Reduce Fraud in the Government

Manuel Díaz SaldañaComptroller of Puerto Rico

May 2, 2005

Commonwealth of Puerto RicoOFFICE OF THE COMPTROLLER


Every entity has to develop different methods or strategies to maximize accountability, minimize risks, improve transparency and reduce fraud. This is even more important when government entities are involved. The administrators or managers in public service assume a fiduciary responsibility in administering the governments’ resources. This fiduciary responsibility entails that the administrator of the goods will hand them over at the end of his tenure with an added value, improved or augmented, in quality and in quantity.


Programs developed in the Comptroller’s Office to maximize

accountability, minimize risks, improve transparency and

reduce fraud in the Government.


Mission, Vision and Values

Mission – To oversee the transactions of public funds

and property – To promote the effective and efficient use of

government resources

Vision– To be a world-class model for public office – To serve Puerto Rico as a true agent of

change, integrating the efforts of the public and private sectors


Cont. Mission, Vision and Values

Values

Commitment We are dedicated to our work .

Integrity We work in a responsible manner.

Sensibility We respect the dignity of all human beings.

Justice We watch for the strictest compliance with the law.

Excellence We are constantly improving ourselves.


COMMONWEALTH OF PUERTO RICO CONSTITUTION

Article III, Section 221952

The Controller shall audit all the revenues, accounts and expenditures of the Commonwealth, of its agencies and instrumentalities and of its municipalities, in order to determine whether they have been made in accordance with law. He shall render annual reports and any special reports that may be required of him by the Legislative Assembly or by the Governor.


Total Quality Management

Based on principles of continuous revision of existing processes and constant measurement of the results

– We have identified 230 processes

– We have revised 151 (65 %)

– 715 recommendations have been received and 80% of these recommendations have been complied with


Cont. Total Quality Management

• First Strategic Plan (1997)

• Third Strategic Plan 2004 to 2007 - composed of five focus areasOverseeingPreventionHuman CapitalTechnologyCustomer Services


“If you have failed to plan, you are planning to fail.”


StrategiesDirected towards :

– Each of the focus areas and

– Promoting the objectives or goals of maximizing accountability, minimizing risks, improving transparency in transactions and detecting and preventing or reducing fraud in the Government

Two dimensions:– Internal –External


Internal Strategies

• Anticorruption Policy (2000)

– Ethic’s Committee - receives, investigates and decides the merits of ethics-related grievances or complaints

– Hot-line

– Internal Audit Advisory Committee (2000)


Cont. Internal Strategies

• ISO 9000 certification

• Comprehensive Annual Financial Report (beginning on 1997-98)



• Promoting the use of technology

– Virtual Office

– TeamMate Program in the audit function

– Payroll payments by electronic means, using direct deposits


“That which isn’t measured can’t be improved.”

Anonymous



• Project Management Official

– 116 active projects

“The vision must be followed by the venture. It is not enough to stare up the steps – we must step

up the stairs.” Vance Havner



• Human Capital

– A strict recruitment process

– Continous education requirements

– Reduction of employee turnover

– Assessment of working environment


External Strategies Identified six strategies geared to improve public administration and fight corruption

1. Rigorous and constant oversight2. Promoting education and training of public

employees3. Promoting an excellent administrative and

financial system with emphasis on effective internal controls

4. Fair laws5. Dissuasive punishments6. Strategic alliances between related agencies


“Leadership and learning are indispensable to each other.”

John F. Kennedy


Cont. External Strategies • Promoting education and training of

public employees

– Training of elected public officials on good management practices (Law Num. 222 of August 6, 1999)

– Orientations and training on good management practices

– Expositions in large commercial establishments


Cont. External Strategies

• Massive disclosure of the role of the Comptroller’s Office



“Education must stimulate the development of the capacity to create in human beings and their devotion to spiritual values. Education must also forge citizens with moral integrity

and a will of service to the community. Education must be inspired by a demanding

sense of excellence.”Luis A. Ferré, Former Governor of Puerto Rico



“There is nothing

permanent except change.” Heraclitus


Cont. External Strategies• Oversight function

– Traditional oversight – New oversight methodology

(periodic evaluations) • Property Registers• Internal Audit Offices• Government University• Legislator’s Offices• Municipalities


COMPARISON OF MUNICIPALITIES (78) COMPLIANCE WITH ESTABLISHED CRITERIAS

FISCAL YEARS 1997-98 AND 2003-04

Source: Special Reports M-99-4A and M-05-4G dated May 25, 1999 and April 14, 2005.

(26%)

(58%)


MUNICIPALITIES COMPLIANCEPREPARATION OF AUDITED FINANCIAL STATEMENTS WITHIN SIX MONTHS AFTER THE END OF FISCAL YEAR

74

20

10

25

50

75

100

oct. 1997 1997-98 2003-04

(95%)

(26%)

Source: Special Reports M-99-4A y M-05-4G dated May 25, 1999 and April 14, 2005.

Due date extended to Jan. 2005 to comply with GASB 34


Cont. External Strategies - oversight

• Annual evaluation of financial actions that adversely affect, from an economic point of view, government administration

– Collecting information regarding civil suits

against the government for unlawfully

removing government employees – Our

reports reflect that the loss of economic

resources amounted to $65,066,295 in a ten

year period ending on December 2004.



• Actively participated in the approval of laws – In the year 2003-2004 and until March

2005, we have received and submitted comments on 105 drafts of legislative bills


Cont. External Strategies - lawsCont. Actively participate in the approval of laws

– Continuous education and training of public servants

– Contractual and ethics requirements for those who do business with the government

– Controls and disclosure of governmental transactions

– Oversight and protection of informants (whistle-blowers)



• Recommend and promote that all government agencies use technology

– Filing copies of all government contracts and other documents by electronic means

– Use of the Internet to disseminate information of interest

• Complaint register


“Leaders challenge the status quo. Continuous

challenge produces continuous improvement.”

Paul B. Thornton


WE COUNT ON YOUR

COOPERATION TO IMPROVE

THE OVERSIGHT FUNCTION

AND ADMINISTRATION OF

PUBLIC FUNDS AND

PROPERTY

comptrollership at your service... 1 approaches to maximize accountability, minimize risks, improve...

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