Commonwealth of Puerto Rico
OFFICE OF THE COMPTROLLER
Approaches to Maximize
Accountability,
Minimize Risks,
Improve Transparency, and
Reduce Fraud in the
Government
Manuel Díaz Saldaña
Comptroller of Puerto Rico
at your service ...
MayComptrollership
2, 2005
1
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.
Comptrollership at your service ...
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Programs developed in the
Comptroller’s Office to maximize
accountability, minimize risks,
improve transparency and
reduce fraud in the Government.
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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
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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.
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COMMONWEALTH OF PUERTO RICO
CONSTITUTION
Article III, Section 22
1952
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.
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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
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Cont. Total Quality Management
• First Strategic Plan (1997)
• Third Strategic Plan 2004 to 2007 composed of five focus areas
Overseeing
Prevention
Human Capital
Technology
Customer Services
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“If you have failed to plan,
you are planning to fail.”
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Strategies
Directed 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
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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)
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Cont. Internal Strategies
• ISO 9000 certification
• Comprehensive Annual Financial
Report (beginning on 1997-98)
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Cont. Internal Strategies
• Promoting the use of technology
– Virtual Office
– TeamMate Program in the audit
function
– Payroll payments by electronic means,
using direct deposits
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“That which isn’t measured
can’t be improved.”
Anonymous
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Cont. Internal Strategies
• 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
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Cont. Internal Strategies
• Human Capital
– A strict recruitment process
– Continous education requirements
– Reduction of employee turnover
– Assessment of working environment
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External Strategies
Identified six strategies geared to improve
public administration and fight corruption
1. Rigorous and constant oversight
2. Promoting education and training of public
employees
3. Promoting an excellent administrative and
financial system with emphasis on effective
internal controls
4. Fair laws
5. Dissuasive punishments
6. Strategic alliances between related agencies
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“Leadership and learning are
indispensable to each other.”
John F. Kennedy
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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
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Cont. External Strategies
• Massive disclosure of the role of the
Comptroller’s Office
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Cont. External Strategies
“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
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Cont. External Strategies
“There is nothing
permanent except change.”
Heraclitus
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Cont. External Strategies
• Oversight function
– Traditional oversight
– New oversight methodology
(periodic evaluations)
•
•
•
•
•
Property Registers
Internal Audit Offices
Government University
Legislator’s Offices
Municipalities
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COMPARISON OF MUNICIPALITIES (78) COMPLIANCE
WITH ESTABLISHED CRITERIAS
FISCAL YEARS 1997-98 AND 2003-04
72
1997-98 (10 criterias)
60
2003-04 (18 criterias)
48
36
(58%)
27
21 21
24
12
46
10
4
20
(26%)
7
0
0-69
70-79
80-89
90-100
Source: Special Reports M-99-4A and M-05-4G
dated May 25, 1999 and April 14, 2005.
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MUNICIPALITIES COMPLIANCE
PREPARATION OF AUDITED FINANCIAL STATEMENTS
WITHIN SIX MONTHS AFTER THE END OF FISCAL YEAR
100
74
75
(95%)
50
25
20
1
(26%)
Due date
extended to Jan.
2005 to comply
with GASB 34
oct. 1997
1997-98
2003-04
0
Source: Special Reports M-99-4A y M-05-4G
dated May 25, 1999 and April 14, 2005.
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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.
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Cont. External Strategies
• 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
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Cont. External Strategies - laws
Cont. 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 (whistleblowers)
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Cont. External Strategies
• 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
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“Leaders challenge the
status quo. Continuous
challenge produces
continuous improvement.”
Paul B. Thornton
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WE COUNT ON YOUR
COOPERATION TO IMPROVE
THE OVERSIGHT FUNCTION
AND ADMINISTRATION OF
PUBLIC FUNDS AND
PROPERTY
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