Modification or Suppression of Organizational and Administrative Public Institutions Included in the Budget

The rationalization of the institutional structure and public spending of the Public Administration has the following objectives: 1. To ensure the adequate design of its plans, establish objectives and goals, efficient and effective execution of allocated resources, ensure coordination among state bodies and activities. 2. The planning, administration, execution and settlement of current spending, programs and projects. 3. To monitor, control and evaluate the results achieved. 4. To achieve greater integration and coordination of institutions and programs in the Social sectors, in order to contribute to an efficient provision of public services to the population. 5. To promote and supervise fiscal sustainability and efficient use of budget transfers to municipal governments and other Non-Governmental Organizations. REORGANIZATION OF THE SOCIAL SECTOR

To reform Executive Decree PCM-012-2011, in its Article 87-B, so that it reads as follows: "for the exercise of its functions, the State Secretariat in the Office of Development and Social Inclusion in accordance with what is established in Article 29 of the Law to Optimize Public Administration, Improve Citizen Services and Strengthen Transparency in Government, shall have the Sub-secretariat of Social Inclusion Policies, the Sub-secretariat of Social Integration and the Sub-secretariat of Better Life Program Management, which shall act under the coordination of the State Secretary, who shall be responsible for planning, budget allocation, execution and accountability of current spending that leads to the effective and efficient performance of its general and specific functions, as well as administrative and operational activities within the competence of this State Secretariat. To ensure the formulation, coordination, execution, and evaluation of social programs, the necessary Directorates shall be established to do so in an efficient and effective manner within the Law to Optimize Public Administration, Improve Citizen Services and Strengthen Transparency in Government. To ensure coordinated execution, monitoring and evaluation of programs, projects and components financed with national funds and/or external funds executed by this State Secretariat, on the basis of the commitments established in the respective agreements signed with international cooperation organizations, national legislation and the framework of actions derived from the Paris and Rome Declarations and the Accra Action Plan, regarding the processes of alignment and harmonization of International Cooperation in relation to International priorities, a Project and Program Administration Unit (UAPP) shall be created under the leadership of the State Secretariat in the Office of Development and Social Inclusion, placing under this unit all the administration units that currently operate in the institutions that are merged into this State Secretariat, whose functions and structure shall be developed in the Internal Organization and Functions Regulations of this State Secretariat. The State Secretariat in the Office of Development and Social Inclusion shall be responsible for the Administrative and Financial Management of programs and projects financed with national and external funds that are assigned to it by the President of the Republic, as well as compliance with the conditions established in external cooperation agreements. The Community Development Units Programs (UDECO) and the Healthy Schools Programs (PES) are part of the State Secretariat in the Office of Development and Social Inclusion.

The following Institutions, Programs and Directorates are merged under the State Secretariat in the Office of Development and Social Inclusion: the General Directorates of the Elderly and Persons with Disabilities, both dependent on the former State Secretariat of Interior and Population (SEIP), the National Youth Institute (INJ), State Secretariat in the Offices of Indigenous and Afro-Honduran Peoples (SEDINAFROIH), the Family Assignment Program (PRAF), all functions assigned to these entities shall be performed by this State Secretariat, which shall absorb their assets, budgets, movable and immovable property, tangible and intangible (bank accounts, accounts receivable, concessions, commercial credits in general) and other charges within the stated category. The State Secretariat of Finance is urged to ensure that tangible and intangible liabilities and labor benefits, as applicable, are paid through the General Budget of the Republic. Likewise, the Executive Decrees of Creation of the Institutions, Programs and Directorates previously listed are hereby repealed. SPECIAL AND GENERAL PROVISIONS

The Institutions of the Central Administration, Deconcentrated, Decentralized Institutions, Directorates, Programs and Projects that are under merger processes in charge of the respective State Secretaries, shall act under the approval of the Coordinator of the respective Sectorial Cabinet, these mergers and institutional integrations must include in coordination with the State Secretariat of Finance all those budget modifications, which must be aligned with annual operational plans and Government results. The State Secretariat of Finance is authorized to make the corresponding budget ceiling adjustments and budget modifications in accordance with what is established in this Article.

Personnel transferred to the State Secretariats as a consequence of the merger made through the application of Article 29 of the Law to Optimize Public Administration, Improve Citizen Services and Strengthen Transparency in Government in the different State Secretariats, shall be evaluated by the corresponding State Secretariat for the purpose of determining their suitability for the new position. Personnel who are found to be redundant, supernumerary or unfit for carrying out activities as a consequence of the institutional merger, shall have their appointment cancelled while respecting their acquired rights and benefits in accordance with applicable legislation, for which purpose the State Secretariat in the Office of Finance is instructed to make the budget provision for the corresponding payment taking into account any means of payment permitted by Law.

All restructurings and institutional transformations established in Article 29 of the Law to Optimize Public Administration, Improve Citizen Services and Strengthen Transparency in Government and the present Decree shall be carried out no later than ninety (90) days following the entry into force of this decree.

All normative provisions of the same rank as this Executive Decree that are contrary to it are hereby repealed.

This Decree is of immediate execution and shall be published in the Official Gazette "La Gaceta". Done in Tegucigalpa, municipality of the Central District, on the third day of the month of February of two thousand fourteen. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC JORGE RAMON HERNÁNDEZ ALCERRO STATE SECRETARIAT OF GENERAL GOVERNMENT COORDINATION REINALDO SANCHEZ STATE SECRETARIAT OF THE PRESIDENCY RIGOBERTO CHANG CASTILLO STATE SECRETARIAT OF HUMAN RIGHTS, JUSTICE, GOVERNANCE AND DECENTRALIZATION MIREFA AGÜERO STATE SECRETARIAT OF FOREIGN AFFAIRS AND INTERNATIONAL COOPERATION LISANDRO ROSALES STATE SECRETARIAT OF DEVELOPMENT AND SOCIAL INCLUSION ALDEN RIVERA MONTES STATE SECRETARIAT OF ECONOMIC DEVELOPMENT ROBERTO ORDOÑEZ W. STATE SECRETARIAT OF INFRASTRUCTURE AND PUBLIC SERVICES ARTURO CORRALES STATE SECRETARIAT OF SECURITY SAMUEL REYES STATE SECRETARIAT OF DEFENSE EDNAYOLANY BATRES STATE SECRETARIAT OF HEALTH MARLON ONIEL ESCOTO VALERIO STATE SECRETARIAT OF EDUCATION CARLOS MADERO STATE SECRETARIAT OF LABOR AND SOCIAL SECURITY JORGE LOBO STATE SECRETARIAT OF AGRICULTURE AND LIVESTOCK JOSE GALDAMEZ STATE SECRETARIAT OF NATURAL RESOURCES, ENVIRONMENT AND MINES WILFREDO CERRATO RODRIGUEZ STATE SECRETARIAT OF FINANCE