Institutional Internal Control Policies 2013

This policy requires the Finance Ministry to implement an internal control system across all its departments to ensure transparent use of public funds and fight corruption. A committee will oversee the process, establish timelines, and report progress to authorities, helping improve efficiency in public management.

That Article 245 of the Constitution of the Republic establishes that the President of the Republic is in charge of the General Administration of the State, with its attributions.

That in accordance with Article 246 of the Constitution of the Republic, the State Secretaries are Organs of General Administration of the Country, and depend directly on the President of the Republic.

That Article 36, numeral 8 of the General Law of Public Administration, includes among the attributions of the State Secretaries: To issue agreements and resolutions in matters of their competence and those delegated to them by the President of the Republic.

That Article 222, as reformed, of the Constitution of the Republic establishes that the Superior Court of Accounts is the governing entity of the public resources system.

That through Executive Decree Number PCM-26-2007 dated September 6, 2007, in its Article 1 the Creation, Nature and Purpose of the National Office for Comprehensive Development of Internal Control of Public Institutions (ONADICI) is declared, as a specialized Organ of the Executive Power.

That the State Secretary in the Ministry of Finance, as responsible for the Administration of the Finance Secretariat, is obligated to establish as institutional policy the implementation of the internal control process in all Directorates, Divisions, Units, Areas and Departments, recognizing that said process is indispensable to reasonably ensure the achievement of institutional objectives and transparency, promoting accountability for public management; therefore, extends its support for the continuous improvement of internal controls and commits hierarchical personnel and Internal Control liaisons of each department to act accordingly, promoting the implementation of mandatory practices included in the Technical Guides of Internal Control and complementary provisions that ONADICI issues for such purposes, within the framework of the national system of control of public resources.

That given the situation of fiscal precariousness that currently impacts public finances, there is a risk that the State may not be able to meet financial, economic and social obligations, it is in the national interest to adopt appropriate measures to guarantee the balance of public finances.

That the Law of the Central Bank of Honduras (BCH), Article 40 third paragraph, as an exception, empowers said institution to grant loans to the Government of the Republic of Honduras in order to cover seasonal variations in income or expenses, for a period not exceeding six (6) months, which must be paid in the same fiscal year in which they are requested, at a market interest rate, with the loan limit being ten percent (10.0%) of the total tax collections of the previous fiscal year which amounted to L49,524.1 million.

That the State Secretary in the Ministry of Finance through Office DGCP-DI-931/2012 dated November 21, 2012, requested from the Central Bank of Honduras (BCH) financing in the amount of TWO BILLION EXACT LEMPIRAS (L2,000,000,000.00), in view of the fact that the projected income to finance the General Budget of Income and Expenses for 2012 has been significantly reduced.

That the Board of Directors of the Central Bank of Honduras (BCH), through extraordinary session No. 3442, issued Resolution No. 482/11-2012 dated November 26, 2012, in which it approved granting a Loan to the Government of the Republic of Honduras, through the State Secretary in the Ministry of Finance for an amount of TWO BILLION EXACT LEMPIRAS (L2,000,000,000.00), under the following financial conditions: amount: TWO BILLION EXACT LEMPIRAS (L2,000,000,000.00); Term: until December 31, 2012; Form of disbursement: a single credit to the Single Account of the General Treasury of the Republic; Guarantee: Letter issued by the Central Government for the total amount of the Loan with maturity on December 31, 2012; Form of payment: a single payment upon maturity of principal plus interest; Interest rate: 9.89% annual; Purpose: to cover seasonal variations in tax income of Fiscal Year 2012.