International Journal of Auditing – Oct 2008
Puerto Rico
Annual Initiative to Improve Public Administration and Prevent Corruption
The Office of the Comptroller of Puerto Rico carries out an annual program to improve public administration and prevent corruption. The program encourages government officials to strengthen internal controls in their offices and promote higher administrative standards. Under the program, circular letters are sent to the three branches of government and identify certain criteria or evaluation elements with which the entity must demonstrate compliance. Each criterion or evaluation element is based on a law, regulation, or norm of sound public administration, and the values assigned to the criteria or evaluation elements total 100 points. Once a year, auditors from the Puerto Rican SAI visit the entities to evaluate their compliance and recognize those entities that score 80 points or more. As part of the strategy, the auditors also assist government entities by explaining the criteria or evaluation elements and providing practical means to achieve them. The strategy is designed to reward compliance rather than to penalize the failure to comply.
The criteria or evaluation elements include maintaining up-to-date accounting registries and banking reconciliations; preparing financial information according to applicable laws; maintaining a balanced budget without overdrafts; preparing a strategic plan; complying in a timely manner with corrective action plans to address recommendations of internal and external auditors; establishing and promoting an ethical culture and ethical values; carrying out an effective internal audit activity; and performing annual risk assessments of the entity.
For the year ended June 30, 2007, entities in the legislative, judicial, and executive branches, including the offices of legislators in the Senate and House of Representatives, were evaluated. Of the 317 identified government entities, 263 (83 percent) participated voluntarily and 213 (67 percent) received certificates of recognition. All 27 senators and 49 of the 51 representatives participated in the project and obtained certificates of recognition. In May 2008, the results of this audit strategy were disclosed through the publication of 11 special reports. These reports and the circular letters describing the criteria and evaluation elements are available on the Web site of the Puerto Rican SAI.
For additional information, contact the Office of the Comptroller of Puerto
Rico:
E-mail: ocpr@ocpr.gov.pr
Web site: www.ocpr.gov.pr