pubblic accounting system

7/29/2019 Pubblic Accounting System

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ESCUELA NACIONAL DE ADMINISTRACIN YHACIENDA PBLICA.COORDINACIN DE IDIOMAS.

PUBLIC ACCOUNTING SYSTEM

The Public Accounting System comprises the set of principles, bodies,rules and technical procedures that value, process and express theeconomic-financial events that affect or may affect the property of theRepublic or of its decentralized entities.

The purpose of the Public Accounting System will be:

1. The systematic record of all transactions that affect the economic-financial situation of the Republic and its decentralized entities.

2. Produce the basic financial statements of an accounting system

that shows the assets, liabilities, capital, revenue and expenditureof the public entities subject to the system.

.3. Produce the financial information necessary for taking decisions bythose responsible for public financial management and for thirdparties interested in it.

4. Present the accounting information, financial statements andrespective supporting documentation, arranged in such a way asto facilitate the exercise of the control and internal or externalaudit.

5. Supply information necessary for the creation of the nationalaccounts.

The Public Accounting System will be single, integrated and applicable toall the bodies of the Republic and its functionally decentralized entities;it will be based on the general accounting standards issued by theComptroller General of the Republic and on the other generally acceptedaccounting principles valid for the public sector.The accounting will be kept in the books, records and ,the methodologyprescribed by the National Public Accounting Office and will be orientedto determining the costs of public production.

The Public Accounting System may be supported electronically. Theregulations of this Law will establish the requirements for integration,security and control of the system.

Electronic media may be used to generate vouchers, process andtransmission of documents and information and produce the journal andgeneral ledger and other subsidiary records. The regulations of this Lawwill establish the mechanisms of security and control that guarantee theintegrity and security of the documents and information.


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The National Public Accounting Office is set up as governing body of thePublic Accounting System, which will be in the charge of a Head ofOffice, of free appointment and removal by the Minister of Finance.

The National Public Accounting Office will:

1. Issue accounting standards and specific procedures as considerednecessary for the adequate operation of the Public AccountingSystem.

2. Prescribe the accounting systems for the Republic and itsdecentralized non-commercial entities, through instructions andmodels to be published in the Official Gazette.

3. Issue opinions on the chart of accounts and accounting systems ofstate companies, prior to their approval.

4. Advise and assist technically in the introduction of the standards,procedures and accounting systems prescribed.

5. Record in a special account the movement of the disbursementsrelated to the resources originating in public credit operations ofthe Republic and its decentralized entities.

6. Organize the accounting system to provide permanent informationon the budget, cash and capital management of the Republic andits decentralized entities.

7. Maintain the central accounting of the Republic and draft thecorresponding financial statements, carrying out the operations ofadjustment, opening and closing of the same.

8. Consolidate the financial statements of the Republic and itsdecentralized entities.

9. Draft the General Treasury (Hacienda) Accounts which theMinister of Finance will submit annually to the National Assembly,the otherfinancial statements considered necessary, as well as thoserequested by the National Assembly and the Comptroller Generalof the Republic.

10. Evaluate the application of the standards, procedures andaccounting systems prescribed and order the adjustments

considered appropriate.

11. Promote and conduct the necessary studies of the existingprovisions on accounting, for their permanent updating.

1 2. Coordinate the activity and monitor the operation of theaccounting offices of the agencies of the Republic and theirdecentralized non-commercial entities.


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13. Prepare the economic accounts of the public sector, according tothe national accounting system.

14. Issue the regulations and instructions necessary for theorganization and operation of the archive of financialdocumentation of the national administration. Said regulations will

establish the conservation of the documents by electronic means,applying the security mechanisms that guarantee their stability,durability, immutability and inalterability.

The Minister of Finance will submit to the National Assembly. before June30 each year, the General Treasury (Hacienda)Accounts, which willcontain, as minimum:

1. Statements of execution of the budget of the Republic and of itsdecentralized non-commercial entities.

2. Statements that show the movements and position of the NationalTreasury.

3. Updated statement of the internal and external, direct andindirect, Public Debt.

4. The financial statements of the Republic.

5. Areport thatpresents the consolidated financial accounts of thepublic sector during the year and shows the operating, economicand financial results and an annex thatspecifies the position of

the labor liabilities.

The General Treasury ( Hacienda) Account will also contain comments on

the degree of compliance with the objectives and targets established inthe budget law; and the performance of costs and the efficiencyindicators for public production.

pubblic accounting system

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