Set the Minimum Wage from August First to August Thirty-First, Two Thousand Ten

To set the minimum wage from January first to August thirty-first of two thousand ten, at Five Thousand Five Hundred Lempiras monthly (L.5,500.00) in the urban area and at Four Thousand Fifty-Five Lempiras monthly (L.4,055.00) in the rural area, for all economic activities, except for companies adhered to the ZOI and ZIP regimes.

To set the minimum wage that will govern for all fields of economic activity in the country, as of September first of two thousand ten, as follows:

• a)

  The productive units determined as micro and small enterprises that have from one (01) to twenty (20) workers, shall maintain the same minimum wage set for the period from January 01 to August 31, 2010, that is, if they carry out their activities in the urban area, it shall be Five Thousand Five Hundred Lempiras monthly (L.5,500.00) equivalent to One Hundred Eighty-Three Lempiras with Thirty-Three Cents (L.183.33) per ordinary daily working day, and if they carry out their activities in the rural area, it shall be Four Thousand Fifty-Five Lempiras Monthly (L.4,055.00), which equals One Hundred Thirty-Five Lempiras with Seventeen Cents (L.135.17) per ordinary daily working day.

• b)

  For companies or productive units that have from twenty (20) to fifty (50) workers and that carry out their activities in the urban area, it shall be Five Thousand Six Hundred Fifty-Five Lempiras Monthly (L.5,665.00), which equals a daily wage per ordinary working day of One Hundred Eighty-Eight Lempiras with Eighty-Three Cents (L.188.83).

• c)

  For companies or productive units that have from twenty (20) to fifty (50) workers and that carry out their activities in the rural area, it shall be Four Thousand One Hundred Seventy-Six Lempiras with Sixty-Five Cents Monthly (L.4,176.65), which equals a daily wage per ordinary working day of One Hundred Thirty-Nine Lempiras with Twenty-Two Cents (L.139.22).

• d)

  For companies or productive units that have more than fifty (50) workers and that carry out their activities in the urban area, it shall be Five Thousand Eight Hundred Eighty-Six Lempiras Monthly (L.5,886.00), which equals a daily wage, per ordinary working day of One Hundred Ninety-Six Lempiras with Twenty Cents (L.196.20).

• e)

  For companies or productive units that have more than fifty (50) workers and that carry out their activities in the rural area, it shall be Four Thousand One Hundred Seventy-Six Lempiras with Sixty-Five Cents Monthly (L.4,176.65), which equals a daily wage per ordinary working day of One Hundred Thirty-Nine Lempiras with Twenty-Two Cents (L.139.22).

• f)

  For companies operating under the ZOLI-ZIP regimes, regardless of the area in which they carry out their activities, the minimum wage shall be Three Thousand Eight Hundred Ninety-Four Lempiras with Sixty Cents Monthly (L.3,894.60), which equals a daily wage per ordinary working day of One Hundred Twenty-Nine Lempiras with Eighty-Two Cents (L.129.82).

• g)

  For companies or productive units that apply the differentiated or regionalized minimum wages referred to in Executive Agreement No. 001-STSS-07 dated January 31, 2007, regardless of the area in which they carry out their activities, the minimum wage shall be Two Thousand Nine Hundred Eighty-Two Lempiras Monthly (L.2,982.00), which equals a daily wage per ordinary working day of Ninety-Nine Lempiras with Forty Cents (L.99.40).

Notwithstanding the provisions in subsections a), b), and c) of the preceding article, companies or productive units that have from one (01) to fifty (50) workers, a level of productivity that allows them to accumulate surplus margins, greater investment in fixed assets, an adequate ratio in terms of their working capital, a clear division of labor and formality in their accounting and administrative records, if they carry out their economic activity in the urban area shall pay a monthly minimum wage of Five Thousand Eight Hundred Eighty-Six Lempiras (L.5,886.00), which equals a daily wage per ordinary working day of One Hundred Ninety-Six Lempiras with Twenty Cents (L.196.20), and if they carry out their economic activity in the rural area shall pay Four Thousand One Hundred Seventy-Six Lempiras with Sixty-Five Cents Monthly (L.4,176.65), which equals a daily wage per ordinary working day of One Hundred Thirty-Nine Lempiras with Twenty-Two Cents (L.139.22).

It is understood that within the urban area; those companies or productive units that operate within urbanized areas that are outside the urban center are included, in accordance with the definitions made by the Honduran Institute of Property.

The Secretariat of Labor and Social Security, through the General Directorate of Salaries and the General Labor Inspection, shall be responsible for ensuring strict compliance with the payment of the minimum wage in accordance with established legal standards.

This Agreement shall be published in the Official Gazette. Done in the city of Tegucigalpa, municipality of the Central District, on the twenty-ninth day of the month of October of the year two thousand ten. BE IT KNOWN, PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC FELÍCITO ÁVILA ORDÓÑEZ SECRETARY OF STATE IN THE OFFICES OF LABOR AND SOCIAL SECURITY Secretariat of Governance and Justice MINISTERIAL AGREEMENT No. 705-2010 Tegucigalpa, M.D.C., August 11, 2010 THE SECRETARY OF STATE IN THE OFFICES OF GOVERNANCE AND JUSTICE CONSIDERING: That the Honorable Fire Department Corps of Honduras is a Decentralized Institution of this Secretariat of State, of public service, technical, professional and permanent character. CONSIDERING: That the Law of the Fire Department Corps of the Republic establishes that the Executive Power through the Secretariat of State in the Offices of Governance and Justice shall issue the respective regulations for its correct operation. CONSIDERING: That through Executive Agreement dated October twenty-sixth of the year two thousand eight (2008), the President of the Republic in exercise of the powers granted, approved the Regulation of Travel Allowances and other travel expenses for officials and employees of the Executive Power, leaving it subject to approval through Executive Agreement No. 0030-2003 dated February tenth of the year two thousand three (2003). CONSIDERING: That the budget of the Fire Department Corps is very limited, therefore it is necessary to implement measures to optimize the economic resources available to the Institution. CONSIDERING: That it is not feasible for the Fire Department Corps to pay travel allowances and other expenses established in the current table; since the Institution's finances must be managed within a framework of rationalization to achieve efficiency in the management of allocated resources. THEREFORE: The Secretary of State in the Offices of Governance and Justice, in use of the powers vested in him and in application of Article 118 of the General Law of Public Administration. AGREES: To approve the following: REGULATION OF TRAVEL ALLOWANCES AND OTHER TRAVEL EXPENSES FOR ALL PERSONNEL OF THE FIRE DEPARTMENT CORPS OF HONDURAS CHAPTER I GENERAL CONCEPTS Article 1.- This Regulation establishes the norms and procedures to determine and delimit the payment of travel allowances and other travel expenses within and outside the Republic, for all personnel comprising the Honorable Fire Department Corps of Honduras. Article 2.- All members of the Fire Department Corps shall have the right to be reimbursed for travel allowances and other travel expenses, when authorized to be absent from their residence and remain in places within or outside the country for the performance of an official function. Article 3.- The use of first-class tickets within and outside the country is prohibited, with the exception of those cases where the trip does not imply any cost to the Fire Department Corps. Article 4.- Trips shall be made by the most direct and most economical means and routes, taking into account the circumstances, time and urgency of the mission to be performed.- If due to personal preferences the traveler chooses a more costly alternative, the excess costs shall be borne by the traveler. Article 5.- The Fire Department Corps shall reduce its trips abroad to what is strictly necessary. Article 6.- In trips abroad, an effort shall be made to select a hotel that is as close as possible to the place where work meetings are held, as long as it is economically favorable considering the cost of local transportation. CHAPTER II DEFINITIONS Article 7.- For the purposes of this Regulation, the following shall be understood as: a) Traveler: Any member of the Fire Department Corps, whether Senior Officer, subordinate or lower rank and Administrative Personnel. b) Travel Allowances: The amount recognized to the traveler to cover subsistence expenses when having to travel on an official mission, away from the residence where the traveler permanently works.- Subsistence expenses are understood as: Food, lodging expenses, personal laundry, private phone calls. e) Other travel expenses: The allocation of money to the traveler to cover expenses directly related to the authorized trip, such as: 1) transportation expenses to and from the airport, when using air transportation and to and from the transportation terminal, when by land transportation; 2) payment of airport taxes, 3) expenses for fuel and lubricants, spare parts, accessories and minor repairs, when using a vehicle owned by the Fire Department Corps; 4) fuel expenses, when using a vehicle owned by the traveler, with prior authorization from a superior, and 5) expenses for internet, phone calls (landline or mobile) and similar matters related to the trip. CHAPTER III DETERMINATION OF CATEGORIES, ZONES, MISSION PERIODS AND LIMITS FOR TRAVEL ALLOWANCES Article 8.- For the purposes of this Regulation, travel allowances shall be assigned based on the hierarchical scale of Fire Department Corps members, geographical zones and mission periods, according to the following: a) Categories Category Occupational Group Comprises II Management Commander and Sub Commander General. III Executive Senior Officers, and other members with monthly salary equal to or greater than Lps. 22,000.00. IV Technical Senior Officers, subordinates and other members with monthly salary between Lps. 10,000.00 to Lps. 21,999.00. V Technical and Support Personnel All Institution members with salary less than Lps. 10,000.00. b) Geographical Zones 1) Within the Country Definition of Geographical Zones La Ceiba, Tela, Trujillo, Comayagua, Santa Rosa de Copán, Copán Ruinas, San Pedro Sula Puerto Cortés, Choluteca, Danlí, Tegucigalpa, Puerto Lempira, La Esperanza, Montán, La Paz, Gracias, Nueva Ocotepeque, Jutipalpa, Catacamas, Santa Bárbara, San Lorenzo, Ampala, Choluteca, Siguatepeque, Guanaja, Tocoa and El Progreso. ZONE 1 The departmental capitals not included in Zone 1 and the following places: El Paraíso, Marcala, La Lima, Choloma, Potrerrillos (Cortés) and Villanueva. ZONE 2 ZONE 3 Remainder of the Republic. ZONE 4 Central America, Panama and Belize. 2) Outside the Country Definition of Geographical Zones ZONE 1 Central America, Panama and Belize. ZONE 2 South America (excepting Argentina, Brazil, Chile and Venezuela, which are classified in Zone 3). ZONE 3 Canada, United States of North America, Mexico, The Antilles, Argentina, Brazil, Chile and Venezuela. ZONE 4 Europe and rest of the world. c) Mission Period a) Short: From one to thirty days b) Long: From thirty-one days to sixty-three days. c) For periods longer than this, monthly payments shall be made in accordance with Article 17 of this Regulation. d) Travel Allowances a) Within the Country Values in Honduran Lempiras Category Zone 1 Zone 2 Zone 3 Short Period Long Period Short Period Long Period Short Period Long Period II Food: Lps. 350.00 Food: Lps. 350.00 Food Lps. 350.00 Food: Lps. 350.00 Food Lps. 300.00 Food: Lps. 300.00 Lodging Lodging Lodging Lodging Lodging Lodging Lps. 1,300.00 Lps. 1,230.00 Lps. 1,050.00 Lps. 880.00 Lps. 850.00 Lps. 850.00 Total: Lps. Total: Lps. Total: Lps. Total: Lps. Total: Lps. Total: Lps. 1,650.00 1,150.00 1,400.00 1,230.00 1,150.00 1,150.00 III Food: Lps. 350.00 Food: Lps. 350.00 Food Lps. 300.00 Food: Lps. 300.00 Food Lps. 300.00 Food: Lps. 300.00 Lodging Lodging Lodging Lodging Lodging Lodging Lps. 1,050.00 Lps. 990.00 Lps. 850.00 Lps. 800.00 Lps. 600.00 Lps. 600.00 Total: Lps. Total: Lps. Total: Lps. Total: Lps. Total: Lps. Total: Lps. 1,400.00 1,340.00 1,150.00 1,100.00 900.00 900.00 IV Food: Lps. 350.00 Food: Lps. 350.00 Food Lps. 350.00 Food: Lps. 350.00 Food Lps. 250.00 Food: Lps. 250.00 Lodging Lodging Lodging Lodging Lodging Lodging Lps. 800.00 Lps. 650.00 Lps. 600.00 Lps. 700.00 Lps. 450.00 Lps. 400.00 Total: Lps. Total: Lps. Total: Lps. Total: Lps. Total: Lps. Total: Lps. 1,150.00 1,000.00 950.00 1,050.00 700.00 650.00 V Food: Lps. 300.00 Food: Lps. 300.00 Food Lps. 250.00 Food: Lps. 240.00 Food Lps. 250.00 Food: Lps. 240.00 Lodging Lodging Lodging Lodging Lodging Lodging Lps. 700.00 Lps. 600.00 Lps. 500.00 Lps. 450.00 Lps. 400.00 Lps. 400.00 Total: Lps. Total: Lps. Total: Lps. Total: Lps. Total: Lps. Total: Lps. 1,000.00 900.00 750.00 690.00 650.00 640.00 2) Outside the Country Values in dollars for Zones 1, 2 and 3 and value in Euros for Zone 4 (or equivalent in dollars at official exchange rate). Category Zone 1 Zone 2 Zone 3 Zone 4 Short Period Long Period Short Period Long Period Short Period Long Period Short Period Long Period II 230.00 184.00 243.80 225.40 317.40 294.40 317.40 294.40 III 174.80 161.00 216.20 197.80 285.20 226.80 285.20 266.80 IV 147.20 133.40 188.60 174.80 253.00 234.60 253.00 234.60 V 128.80 119.60 165.60 151.80 220.80 202.40 220.80 202.40 CHAPTER IV GENERAL PROCEDURES Article 9.- All trips within the country must be previously authorized by the Commander General and in cases of absence of the latter outside the country, the Sub Commander General who assumes by law the leadership of the Institution, by signing the Form called "AUTHORIZATION OF TRAVEL ALLOWANCES" or its equivalent, in which the official mission and duration of the trip must be indicated. Article 10.- Trips outside the country by any member of the Fire Department Corps must be approved by Agreement issued in the Secretariat of State in the Offices of Governance and Justice.- In the agreements the nature of the mission and the duration of the trip shall be indicated. Article 11.- Settlement of travel allowances and other travel expenses shall be made obligatorily in accordance with the following guidelines: a) Daily travel allowances in accordance with the amounts indicated in this Regulation: - For trips abroad it is mandatory to present proof of departure and entry of the country of origin and destination, as well as the corresponding codes of the boarding passes of the means of transportation: airplane, bus, train, etc. - For trips within the country it is mandatory to present the original hotel invoice, duly paid. b) Transportation to and from the airport. c) Airport taxes, presenting the payment receipt. d) Local transportation in the place visited, indicating the details of expenses incurred. e) Expenses for official phone calls, landline or mobile, presenting receipts with justifications as applicable. f) Mobilization expenses for trips within the country: fare, fuel, etc., presenting the corresponding invoices. g) Other unforeseen expenses related to the official mission, presenting the corresponding receipts. Article 12.- The Officials who authorize trips in accordance with Articles 9 and 10 of this Regulation shall also authorize the extensions of time that may be necessary, for which the traveler must present the corresponding justifications.- Once the extension is authorized, additional travel allowances and other travel expenses may be granted. Article 13.- Travel allowances and other travel expenses shall be paid in advance for the entire time that the mission lasts, except for the stipend established in Article 17 of this regulation. The Business Management shall ensure that such payment is received in a timely manner by the traveler in the place where the work is being performed. Article 14.- The daily allocation of travel allowances shall be counted for each night that the traveler remains away from his usual residence.- To compute the days, an amount equivalent to twenty-five percent (25%) of the daily travel allowance rate shall be recognized for the day the traveler returns to headquarters.- When the traveler returns on the same day he left his usual residence, he shall be recognized twenty-five percent (25%) of the daily travel allowance rate, provided that he has been away from his residence for a minimum period of four hours. Article 15.- Once the mission is completed, the traveler shall have a maximum period of five business days to present to the Business Management the settlement of travel allowances received.- All invoices or receipts presented to justify an expense not made or failure to perform work must return the unduly received amounts, without prejudice to the application of sanctions established by law. Article 16.- Cash refunds of travel allowance surpluses and other travel expenses shall be registered with the General Treasury of the Republic through Form PA-11 "CASH RECOVERIES", or If a traveler is dismissed, the traveler shall return the travel allowance check through form PA-03 "CHECK CANCELLATION" or through the cash refund established above, within a period not to exceed five (5) business days after receipt.- Under no circumstances may members of the Fire Department Corps use these funds for other purposes. Article 17.- When the mission assigned requires that the traveler perform the task for a period of between sixty-one (61) days and two hundred seventy (270) days, in the same or different place, the following procedure shall be followed: a) Daily travel allowances shall not be recognized, but rather a monthly stipend, which shall be equivalent to twenty percent (20%) of the long period travel allowance rate in the corresponding geographical zone. b) The Business Management of the respective department shall make arrangements to find lodging facilities under extended arrangements, in such a way as to reduce the cost compared to what would be received by application of the short period rate of the corresponding geographical zone. CHAPTER V RESTRICTIONS AND PROHIBITIONS Article 18.- The splitting of mission periods for the purpose of evading the correct application of the travel allowance table in order to benefit travelers is prohibited.- When a case of splitting is proven, the Business Management shall file an objection indicating the corresponding adjustments. Article 19.- The payment of travel allowances and other travel expenses to persons who, taking advantage of non-working days, move to other places to attend personal matters or for recreation purposes is prohibited. Article 20.- Under no circumstance shall travel allowances or travel expenses be used to recognize overtime or compensation for ordinary or extraordinary work, both the Official who allows and the one who receives payment shall be jointly liable for the commission of such acts, and must return the unduly received amounts, without prejudice to the application of sanctions established by law. Article 21.- When a traveler attends or participates in an activity where travel allowances and travel expenses are recognized, they should not charge these from the government, unless the amount recognized is less than those stipulated in this Regulation, in which case a settlement must be presented for the difference: Article 22.- Only twenty percent (20%) of the daily travel allowance shall be recognized when food and hotel expenses are included as part of the mission, seventy-five percent (75%) when hotel payment is not recognized. Article 23.- Under no circumstance shall travel allowances be assigned for a greater number of days than those actually required for the performance of the mission. The violation of this article shall incur both the traveler and the official authorizing the trip in corresponding administrative and criminal liabilities, without prejudice to returning the amounts received unduly. Article 24.- All reports and documentation presented by any member of the Fire Department Corps who has traveled on an official mission, with which it is intended to justify an expense not made or failure to perform work, shall give rise to the corresponding objection and to the sanctions established by law. CHAPTER VI MISCELLANEOUS PROVISIONS Article 25.- Without prejudice to the criminal or administrative responsibility that may be incurred, every traveler is obligated to return to the General Treasury of the Republic the travel allowances and travel expenses that have been received in the following cases: a) When it is proven that the trip was not made. b) When the trip was dedicated entirely to activities different from those assigned. Article 26.- When any government agency requires the services of a member of the Fire Department Corps for the performance of a mission outside their headquarters, all travel expenses shall be borne by the office requesting the services. Article 27.- The traveler who uses a Fire Department Corps vehicle to make a trip shall be responsible for its proper use and must return it in the same condition in which it was received.- The traveler shall also be responsible for any anomalous situation that arises during the trip if it originates from misuse or intentional misconduct by the traveler.- It shall not be permitted for persons not related to the mission to travel. If the traveler uses his own vehicle to perform an official mission, the only responsibility of the Fire Department Corps shall be the reimbursement of fuel properly authorized and documented, which was incurred due to the mission. Article 28.- The travel allowance rates specified in this regulation are the maximum amounts that can be recognized to Fire Department Corps personnel traveling on official missions outside their headquarters. The amounts of travel allowances for trips abroad shall be calculated by multiplying the applicable daily rate in American dollars and Euros by the exchange rate in lempiras prevailing in the national financial system on the day the respective payment order is prepared.- The same exchange rate shall be used to present the corresponding settlements. Article 29.- This Regulation may be modified at any time to adapt it to the economic reality of the Fire Department Corps, using as a basis the Executive Power's Travel Allowance Regulation. This Regulation shall enter into force as of this date and shall be published in the Official Gazette. In witness thereof, this Ministerial Agreement is signed, in the city of Tegucigalpa, municipality of the Central District, on the eleventh (11) day of the month of August of the year two thousand ten. CARLOS ÁFRICO MADRID HART SECRETARY OF STATE IN THE OFFICES OF GOVERNANCE AND JUSTICE PASTOR AGUILAR MALDONADO GENERAL SECRETARY Secretariat of Governance and Justice MINISTERIAL AGREEMENT No. 706-2010 Tegucigalpa, M.D.C., August 11, 2010 THE SECRETARY OF STATE IN THE OFFICES OF GOVERNANCE AND JUSTICE CONSIDERING: That the Honorable Fire Department Corps of Honduras is a Decentralized Institution of this Secretariat of State, of public service, technical, professional and permanent character. CONSIDERING: That the Law of the Fire Department Corps of the Republic establishes that the Executive Power through the Secretariat of State in the Offices of Governance and Justice shall issue the respective regulations, which shall be prepared by the Fire Department Corps of Honduras for its correct operation. CONSIDERING: That in accordance with the State Contracting Law, it is important to implement regulatory provisions that regulate purchases and supplies of the Institution. CONSIDERING: That it corresponds to the Fire Department Corps of Honduras to issue the internal regulatory norms of administration that it deems pertinent for the proper performance of its functions. THEREFORE: In exercise of the powers granted by Law: AGREES: To approve the following: REGULATION OF PURCHASES AND SUPPLIES OF THE HONORABLE FIRE DEPARTMENT CORPS OF HONDURAS CHAPTER I OBJECTIVES AND SCOPE Article 1.- This Regulation has as its specific objective to establish the necessary procedures for the rational, effective and efficient functioning of resources allocated for the purposes for which it was created. Article 2.- The application of this Regulation is mandatory for the Offices and Regional Commands that are authorized to use petty cash. Article 3.- For the correct understanding of this regulation, the following shall be understood as: a) Reconciliation: Verification of the Petty Cash Fund through its application in expenses, invoices, receipts, vouchers and available balance. b) Objectives of the Internal Petty Cash Regulation: To define the norms, procedures and responsibility for the approval, assignment, administration, discharge and control of petty cash funds in the departments authorized by the General Command of the Fire Department Corps. c) Petty Cash: Fixed funds of current resources in national currency, which form part of the budget of the Fire Department Corps of Honduras, and in the case of Regional Commands of funds transferred by municipalities in the concept of fire service fees; and whose unforeseen emergencies from its operational functioning and which correspond to cash payments for minor and miscellaneous expenses exclusively. CHAPTER II ADMINISTRATION OF PETTY CASH FUND Article 4.- The Petty Cash Fund shall be used solely to cover minor expenses whose amount does not exceed the following values:

• 1)

  For the Fire Department Headquarters in Tegucigalpa: SIX THOUSAND HONDURAN LEMPIRAS EXACT (Lps. 6,000.00);

• 2)

  ZONE 1: FIVE THOUSAND HONDURAN LEMPIRAS EXACT (Lps. 5,000.00);

• 3)

  ZONE II: FOUR THOUSAND HONDURAN LEMPIRAS EXACT (Lps. 4,000.00);

• 4)

  ZONE III: THREE THOUSAND HONDURAN LEMPIRAS EXACT (Lps. 3,000.00). Article 5.- The following are understood as minor expenses: a) Transportation and food expenses for personnel on service missions, likewise when the work to be performed is justified by its urgency. b) For the purchase of small materials for the repair of furniture and equipment. c) Purchase of spare parts for the correct functioning of the Fire Department Corps units. d) For the purchase of office equipment of frequent and extraordinary use. e) Communication services, email, faxes and photocopies. f) For provisions for official work meetings. Each purchase to be made from petty cash shall not exceed ten percent (10%) of the assigned amount. Article 6.- The following departments are authorized to use and administer petty cash: a) General Command of the Fire Department Corps of Honduras. b) Business Management of the Fire Department Corps of Honduras. c) Regional Commands, with prior written authorization from the Commander General of the Fire Department Corps. The Regional Commands are obligated to settle the petty cash funds assigned within the parameters established in this Regulation, having to report monthly on its management to the General Command with a copy to the Business Management and Internal Audit of the Fire Department Corps. Article 7.- The employee designated in each department authorized to handle petty cash shall serve as Petty Cash Administrator, who shall have that responsibility assigned. The Petty Cash Fund Administrator is responsible for the actions that directly pertain to him, for the management and safekeeping of the assigned fund. Article 8.- The Petty Cash Administrator shall have the following functions: 1) To administer the Petty Cash Fund assigned, strictly attending to the limit and concept of expenses, authorizations and other norms established in this regulation. 2) To keep the assigned fund in custody with appropriate security and within the facilities of the Fire Department Corps General Headquarters or Regional Commands as applicable. 3) To require that each supporting document shows the purpose and reason for the expense incurred. 4) To provide the necessary facilities for the execution of reconciliations by the pertinent areas. 5) To verify the consistency of supporting vouchers presented for the discharge of petty cash funds. Article 9.- The management of petty cash fund is conditioned on the observance of the following procedures:

  • 1)

    Personnel requesting a good or service from petty cash shall request it from the person responsible for managing the fund through a written request, except for departments that manage their petty cash authorized by the Department Head.

  • 2)

    Once the fund request is authorized, the requesting personnel must account for it within a period not to exceed the next business day after receiving the fund.

  • 3)

    In case the requesting party exceeds the period set in the previous numeral, must account for it, the Petty Cash Fund Administrator shall inform directly the Personnel Chief, so that the amount is deducted from the salary of the Fire Department Corps employee, without prejudice to any sanctions that may be applied.

  • 4)

    The person responsible for the fund, once the receipts presented by the requesting party are received, shall proceed to stamp the "paid" seal on the documents or receipts, which must contain the following information: a) Receipt or invoice number b) Date c) Business Name or name of the establishment or person who provided the service. d) Expense concept e) Amount 5) For purchases made with sellers who do not issue invoices or receipts, a form shall be prepared in which the general data indicated in the previous numeral must be recorded. 6) When invoices and other vouchers contain defects of nullity, such as erasures, corrections, alterations, suspicious additions in the date, amount or stamps, they shall not be recognized for settlement purposes, therefore the holders of these funds shall have the obligation to return the amounts disbursed not subject to reimbursement within a maximum period of three business days from the date the reimbursement rejection occurred. Article 10.- To carry out the settlement of petty cash fund, the manager shall attach the final supporting documents that substantiate the expense, to make the corresponding accounting operation, documents that shall be previously verified by the corresponding Superior, who must sign each of the documents or receipts.- The remaining money from the accounting operation performed shall be deposited in the General Account maintained by the Institution in the Central Bank of Honduras. Article 11.- For the replenishment of fixed petty cash funds, the following procedure must be followed: a) The person responsible for managing the fund, in order to meet requirements in a timely manner, may request reimbursement when its execution has reached a maximum level equivalent to 50% of the assigned fund. b) For the corresponding reimbursement, the responsible party must make the reimbursement request of the account equivalent to the amount spent. c) It is the obligation of the Petty Cash Fund Administrator to guarantee the truthfulness and legality of the documents supporting the reimbursement under his responsibility. CHAPTER III BOND AND CLOSURE OF PETTY CASH Article 12.- For Petty Cash Administrators, it is mandatory to provide a bond as established by the Law and Regulation of the Superior Court of Accounts. Article 13.- The following shall be grounds for closure or suspension of petty cash: a) When in its management the objectives of its creation have been distorted. b) By order of the General Command of the Fire Department Corps of Honduras. CHAPTER IV INTERNAL CONTROL Article 14.- The Internal Audit Department shall have the obligation and responsibility to conduct monthly ordinary reconciliations and extraordinary reconciliations of a surprise and selective nature, preparing the report in which their approval or disapproval shall be recorded, reports that shall be sent to the General Command and Superior Court of Accounts for their information and decision-making. CHAPTER V PROHIBITIONS Article 15.- The following is strictly prohibited: a) The use of petty cash funds for expenses unrelated to their specific purpose, loans to employees or other persons outside the Institution, exchange of checks with advanced dates. b) That no petty cash fund requestor may authorize new travel allowances if there is pending settlement from the previous trip that has been made. Article 1.- GENERAL OBJECTIVE. 1.- The objective of this regulation is to promote: transparency, competition, equality, agility and greater flexibility in the process of acquiring goods and services, which allows requesting agencies to obtain these at reasonable prices, with the required quality and at the opportune time. 2.- To regulate commercial and contractual relations between the Fire Department Corps and its suppliers, whether these are national or foreign companies or natural or legal persons in accordance with the State Contracting Law and other applicable provisions. 3.- This regulation establishes general and specific provisions to which the operations for the acquisition and supply of goods and services to the Fire Department Corps shall be subject, without prejudice to what is established in the State Contracting Law.

DEFINITIONS. Goods: They are the supplies, equipment, furniture, machinery and other assets essential for the normal functioning of the Fire Department. Quality: It is satisfying the needs of users, creating the necessary conditions to consistently and timely provide products or services that meet or exceed their expectations. Purchasing Committee: It is the body responsible for ensuring strict compliance with the standards and policies for the acquisition of goods and services. Purchases: The process through which goods or services required are managed and obtained from the supplier. Direct Contracting: A procedure applicable in emergency situations or in other exceptional situations provided for in article 63 of the State Contracting Law, excluding the formal requirements of bidding or competition. Quotation: It is the process used by the Fire Department to obtain market prices for goods and services demanded by the Institution, through the established format. Authorized Signatures: It is the official record of the names and signatures of officials delegated to obtain goods and services. Petty Cash Fund: These are resources with immediate availability for the acquisition of goods and services of lesser amount. Private Bidding: A procedure for selecting public works contractors or suppliers of goods or services consisting of an express and direct invitation to certain qualified bidders, in sufficient number to ensure competitive prices and in no case fewer than three, so that they present offers for the contracting of public works or supply of goods or services subject to the terms and conditions, submit their offers in writing, among which the Fire Department of Honduras will decide on the awarding of the contract, in accordance with the criteria provided in the State Contracting Law and other applicable laws. Public Bidding: A procedure for selecting public works contractors or suppliers of goods or services, consisting of a public invitation to interested parties that meet the requirements provided in the Law and its Regulations so that, subject to the terms and conditions, they submit their offers in writing; among which the Fire Department of Honduras will decide on the awarding of the contract, in accordance with the criteria provided in the State Contracting Law and other applicable laws. Purchase Order: It is the official document of the Fire Department of Honduras, by means of which it commits and orders the acquisition of goods and services detailing quantities, description and prices. Payment Order: It is the official document by means of which the Fire Department of Honduras authorizes the issuance of the check to pay previously incurred commitments. Service Order: It is the official document of the Fire Department of Honduras, by means of which it commits to the acquisition of services detailing units, quantity, values and description of the service. Sole Supplier: The natural or legal person who enjoys exclusive representation or distribution of a product or service. Supplier Registry: It is the list of suppliers of goods and services registered and properly accredited and classified by commercial activity, prior to qualification criteria. Requisition: It is the format for requesting goods and services from the different departments of the Fire Department. Summary of Quotations: It is the form that describes the conditions of the offers received, specifying in the first place the supplier that presents the best offer in price and place to the supplier that presents the best quality (repairs, spare parts, maintenance, warranty, delivery time and others). Services: Activity to be developed by a supplier to satisfy the needs demanded by the Fire Department. Supplies: Section through which goods and services requested are provided to the different departments. Terms of Reference or Bidding Bases: It is the document that specifies to the supplier the basic characteristics, rules and conditions of the goods and services to be supplied and that will be used to present their offer.

SCOPE. Prior to initiating the purchasing and supply process, budget availability must be verified; this process will be carried out and finalized when purchasing the good or service requested by the interested department; purchases of furniture, equipment as well as non-routine expenses prior to initiating the purchasing process will be approved by the General Commander. The phases of the process regulated in this Regulation are the following: a) Requisitions b) Qualification of the requisition c) Processing: c.1 Supply dispatch c.2 Minor purchase c.3 Major purchase c.3.1 Quotation c.3.2 Public and Private Bidding d) Adjudication e) Reception f) Settlement and Payment

GENERAL PROVISIONS 1. The Administration Department is the only one authorized to carry out purchasing procedures for goods and services for negotiations with suppliers and when circumstances warrant, it may request specialized technical support from other departments of the Institution. 2. No other official or employee is authorized to acquire on behalf of the Fire Department of Honduras, articles for use in their department. 3. All bidders of products and/or services demanded by the Fire Department of Honduras will have equal opportunities; however, it will be a requirement to be registered as a supplier in the public records maintained by the Administration Department for this purpose. 4. Regarding the contracting of services for repair and maintenance, the Administration Department, prior to quotation or bidding according to the State Contracting Law, will select and contract specialized individuals or companies to sign contracts that guarantee preventive and corrective maintenance. 5. In case of purchases of goods and services for technological reasons, exclusive representation or sole manufacturer, direct purchase may be made, after it is qualified as a sole supplier, and this is approved by the General Commander taking into consideration what is established in the State Contracting Law. 6. For officials and employees who participate in the process of acquiring goods and services, it is prohibited to receive commissions, invitations, gifts or any other type of compensation for negotiations and purchases from any current or potential supplier, in order not to compromise the credibility and transparency of the process. 7. The Director of the Administration Department, prior to resolution by the General Command, will make capital investments related to the acquisition of office equipment, computer equipment, software, furniture and others. 8. Fixed assets will be purchased when really necessary and when not available in stock; in special circumstances office equipment may be rented. 9. The different Departments of the Fire Department will request the acquisition of assets in accordance with budget availability and real needs, promoting standardization.

SPECIFIC PROVISIONS. 1. Every acquisition of goods and services shall be requested by means of the pre-numbered Requisition Form, which shall be duly completed and signed by the person in charge of the requesting Department, indicating in detail the requirements of the good or service requested and, if applicable, the identification code of the Article. 2. It shall be the responsibility of the requesting Department, prior to the submission of the requisition, to verify the identification code of the article before requesting a good or service, in order to maintain adequate expense management and inventory control. a) Classification of Purchases 1. Purchases are classified as major and minor. Minor purchases have a maximum amount of up to Three Thousand Lempiras (L. 3,000.00) including sales tax and require one quotation, excluding purchases of accessories and spare parts for which, if a quotation is required even when they are minor purchases. 2. Purchases made by check whose amount is greater than one thousand Lempiras (L.1,000.00) shall be made through purchase orders and service orders for which quotations or public or private bids shall be made. 3. For the terms of reference or bidding documents, compliance with the provisions of the State Contracting Law shall be required. 4. Invitation to Bid. The invitation to submit offers shall be made through notices that shall be published in the Official Journal La Gaceta and in at least one newspaper of national circulation, with the frequency and advance notice as determined in accordance with the nature and importance of the services subject to the bid; in public works bids, in any case, the period between the invitation and the date of submission of offers shall not be less than fifteen (15) calendar days. If the bid is international, the pre-qualification notice and the invitation to submit offers shall also be published abroad. 5. Offers shall be submitted in a sealed envelope, on the date indicated in the official form and duly signed by the supplier, and the opening of the offer shall be carried out in a single act. 6. The opening and analysis of the offers shall be done in accordance with what is established in the bidding documents and the State Contracting Law. e) Contest. For the award of Technical Services Contracts (consulting), a contest procedure shall be carried out, which may be private or public depending on the estimated amount of the contract in accordance with what is indicated for this purpose in the General Provisions of the General Budget of Income and Expenditures of the Republic, considering technical and professional suitability and other requirements provided for in the Regulation of the State Contracting Law. f) Purchase Order. 1. The Fire Department may only commit with suppliers through purchase orders. 2. The purchase order shall contain a description of the goods or services to be acquired, with the corresponding values, expense application and duly signed by authorized officials, attaching the corresponding supporting documents. 3. The values and quantities entered in the purchase order must match the values and quantities entered in the supplier's invoice.

AUTHORIZATION, CLASSIFICATION AND MEANS OF PAYMENT FOR PURCHASES. 1. Authorization of Purchases. The acquisition of goods and services shall be authorized according to the following amounts: AMOUNTS AUTHORIZES MEANS OF PAYMENT PROCEDURE From Lps.0.01 Cash Manager Cash Without quotation Up to L. 1,000.00 Petty Cash From Lps. 1,000.01 General Cheque One quotation Up to L.3,000.00 Command From Lps. 3,000.01 General Cheque Two quotations Up to L. 30,000.00 Command From Lps. 30,000.01 General Cheque Three quotations Up to L. 100,000.00 Command Private Bid From Lps. 100,000.01 General Cheque Private Bid Up to L.250,000.00 Command From Lps. 250,000.00 General Cheque Public Bid onwards Command The amounts for Public Bid and Private Bid may vary in accordance with what is established in the General Provisions of the General Budget of Income and Expenditures of the Republic. Exceptions are the purchase of accessories and spare parts for vehicles, for which quotations shall be required. Based on the State Contracting Law and its Regulation and General Provisions of the General Budget of Income and Expenditures of the Republic. 2. Means of Payment. 1. The means of payment for the settlement of obligations incurred by the acquisition of goods and services shall be through: *Cash or *Check 2. In cases where the Fire Department commits to grant advances on purchase orders or contracts, the supplier shall present a bank guarantee or bond issued by a duly recognized financial institution. 3. For the processing of payments by check, the following documents shall be required: a) Quotations b) Invoices c) Payment Orders

PURCHASING COMMITTEE 1. The Purchasing Committee has the purpose of ensuring strict compliance with the norms, policies and internal regulations established by the Fire Department for the acquisition of goods and services, in accordance with the State Contracting Law and its Regulation and the General Provisions of the General Budget of Income and Expenditures of the Republic. 2. The Purchasing Committee shall be composed of the Executive Director who shall preside over it, the General Administration Director, the Head of the Projects Department, the Head of the Supplies and Provisions Department and the Head of the National Assets Department. 3. In the acquisition of goods and services, the offers shall be analyzed in the presence of the Purchasing Committee in full and with the Internal Audit representative as an observer. 4. The Purchasing Committee shall analyze the offers and recommend the acquisition of the good or service, for which it shall prepare the corresponding minutes, which must be signed by the parties. 5. The Head of the Supplies and Provisions Department shall act as Secretary, shall convene and shall keep the minutes and all pertinent documentation. 6. The Purchasing Committee shall review offers for goods and services whose amount exceeds Thirty Thousand Lempiras (L.30,000.00).

AUTHORIZED SIGNATURES 1. Every requisition must be duly authorized by the head of the requesting Department or an authorized official; in case of absence, authorization shall be delegated to the official temporarily in charge. Under no circumstances shall requisitions signed by unauthorized officials or employees be accepted; for this purpose, authorized signatures shall be notified. 2. Subject to the resolutions of the Purchasing Committee as applicable, the Director of General Administration must sign the authorizations for purchase orders. 3. The Department of Supplies and Materials shall maintain custody of the updated catalog of signatures authorized by each Department.

FORMS The requisition forms, quotations, quotation summary, and purchase order are the official documents that support the process of acquisition of goods and services.

SUPPLIES AND MATERIALS 1. Through a computerized inventory system, the Department of Supplies and Materials is responsible for the custody, dispatch, control, and preservation of articles in continuous use in the operations of the Fire Department and which have been entrusted to it for storage and delivery to the other various Departments. 2. Supplies and Materials shall keep materials properly classified according to the article code and in appropriate locations for easy location within the warehouse. 3. Materials shall be controlled by means of special computerized records for each one of them, which shall be operated daily by the person in charge of their handling, recording therein the movements registered. 4. To every new material that enters the Department of Supplies and Materials, a special control number shall be assigned, classified according to its type. 5. Supplies and Materials shall prepare a general catalog of goods, which shall contain the necessary information for their request by the different Departments of the Institution. This catalog must be kept updated. 6. All materials that enter and exit Supplies and Materials must be matched with the entry and exit documents of the operations which must be duly numbered in consecutive form.

REVIEWS AND AUDIT 1. The Manager of Supplies and Materials shall conduct continuous physical verification of the inventories under his responsibility, in such a way that all items have been verified within a maximum period of four months. In addition to the above, he shall conduct a general inventory of all existing materials on December 31st of each year. 2. The consumption of goods shall be continuously reviewed to determine the minimum and maximum that should be in stock. 3. The Internal Audit of the Fire Department shall conduct selective reviews of the items, in a surprise manner and at least once every three months. Likewise, it shall participate in the inventory indicated in the last paragraph of numeral one above.

REQUEST FOR MATERIAL REPLACEMENT 1. At the moment when the inventory of any material reaches its "reorder point," the Manager of Supplies and Materials shall request the acquisition of the same from the head of the Administration Department. 2. The request indicated in the preceding rule shall be made on a specific form, which shall be numbered in consecutive order; a copy of the same shall be filed in a "pending" file. 3. The request for material replacement shall be reviewed by the Administration Department to verify that it complies with the predetermined maximum levels.

REQUESTS FOR EXISTING MATERIALS 1. Materials shall be requested by the departments, using the requisition form for this purpose. 2. These requisitions shall be approved by the head of the Department and sent to the Department of Supplies and Materials for processing. 3. Each Department shall have a special classification number, in which it shall be recorded in the requisition. 4. The Manager of the Department of Supplies and Materials shall number in consecutive order all the requisitions that are dispatched by said department and shall file them in a special control file.

MONTHLY CONSUMPTION OF MATERIAL Daily Supplies and Materials shall submit to the Administration Department, for its registration, a summary of all input and output components with their respective requisition, operated consecutively and that were dispatched and classified in numerical order, this must be integrated into the computer system.

MATERIAL COST SYSTEM Material entries shall be operated at the price indicated by the supplier's invoice, outputs shall be calculated at average cost.

SHORTAGE OF INVENTORY The Manager of the Supplies and Materials Department is responsible for the existence of materials. Any shortage that is detected in any of them shall be required by said manager in physical form or must pay the value thereof, using average cost as the basis. This Regulation shall enter into force as of the date hereof and shall be published in the Official Gazette La Gaceta. In witness whereof, this Agreement is signed, in the city of Tegucigalpa, municipality of the Central District, on the eleventh day of the month of August of the year two thousand ten. CARLOS ÁFRICO MADRID HART SECRETARY OF STATE IN THE OFFICES OF GOVERNANCE AND JUSTICE PASTOR AGUILAR MALDONADO GENERAL SECRETARY Secretariat of Governance and Justice MINISTERIAL AGREEMENT No. 707-2010 Tegucigalpa, M.D.C., August 11, 2010 THE SECRETARY OF STATE IN THE OFFICES OF GOVERNANCE AND JUSTICE WHEREAS: The Honorable Fire Department of Honduras is a Decentralized Institution of this Secretariat of State, of public service, technical, professional and permanent in character. WHEREAS: The Law of the Fire Department of the Republic establishes that the Executive Power through the Secretariat of State in the Offices of Governance and Justice shall issue the respective regulations, which shall be elaborated by the Fire Department of Honduras, for its proper operation. WHEREAS: It is necessary to have cash values, in the proper amount and timeliness, to satisfy the needs and urgent payments of reduced value. WHEREAS: The resources allocated to this class of expenses require regulations that, subject to current laws, allow for agile, timely, effective, efficient and efficient attention to needs, as well as adequate control. WHEREAS: It is necessary to establish the procedures and regulations for the application of the Petty Cash Fund, in order to rationalize, safeguard and ensure efficient management of disbursements from this payment mechanism. THEREFORE: The Secretary of State in the Offices of Governance and Justice, in exercise of the powers vested in him and in application of Article 118 of the General Law of Public Administration. AGREES: To approve the following: REGULATION FOR THE PURCHASE OF GOODS AND SERVICES BY PETTY CASH OF THE HONORABLE FIRE DEPARTMENT OF HONDURAS CHAPTER I OBJECTIVES AND SCOPE Article 1.- This Regulation has as its specific objective to establish the necessary procedures for the rational, effective and efficient functioning of the resources allocated for the purposes for which it was created. Article 2.- The application of this Regulation is mandatory for the Offices and Regional Commands that are authorized to use petty cash. Article 3.- For the correct understanding of this regulation, the following shall be understood as: a) Audit: Verification of the Petty Cash Fund, through its application in expenses, invoices, receipts, vouchers and available balance. b) Objectives of the Internal Petty Cash Regulation: To define the norms, procedures and responsibility for the approval, allocation, administration, discharge and control of petty cash funds in the offices authorized by the General Command of the Fire Department. c) Petty Cash: Fixed funds of current resources in national currency, which form part of the budget of the Fire Department of Honduras, and in the case of the Regional Commands of the funds transferred by the municipalities in concept of the fee for fire department services; and whose unforeseen expenses arising from its operational functioning and which correspond to cash payments for minor and miscellaneous expenses exclusively. CHAPTER II ADMINISTRATION OF THE PETTY CASH FUND Article 4.- The Petty Cash Fund shall be used solely to cover minor expenses whose amount does not exceed the following values:

• 1)

  For the Fire Department Central in Tegucigalpa: SIX THOUSAND LEMPIRAS EXACTLY (Lps. 6,000.00);

• 2)

  ZONE 1: FIVE THOUSAND LEMPIRAS EXACTLY (Lps. 5,000.00);

• 3)

  ZONE II: FOUR THOUSAND LEMPIRAS EXACTLY (Lps. 4,000.00);

• 4)

  ZONE III: THREE THOUSAND LEMPIRAS EXACTLY (Lps. 3,000.00). Article

• 5)

  Minor expenses shall be understood as the following: a) Transportation and food expenses for personnel on service duty, as well as work to be performed due to its urgency. b) For the purchase of small material for the repair of furniture and equipment. c) Purchase of spare parts for the correct functioning of the Fire Department units. d) For the purchase of office equipment for frequent and extraordinary use. e) Communication services, electronic mail, faxes and photocopies. f) For services related to official work meetings. Each purchase to be made by petty cash shall not exceed ten percent (10%) of the allocated amount. Article

• 6)

  The following offices are authorized for the use and administration of petty cash: a) General Command of the Fire Department of Honduras. b) Business Management of the Fire Department of Honduras. c) Regional Commands, with prior written authorization from the General Commander of the Fire Department. The Regional Commands are obligated to liquidate the petty cash funds allocated, within the parameters established in this Regulation, having to report monthly on its management to the General Command with a copy to the Business Management and Internal Audit of the Fire Department. Article

• 7)

  The employee designated in each office authorized for the handling of petty cash shall serve as Petty Cash Administrator, who shall have this responsibility assigned to him. The Administrator of the Petty Cash Fund is responsible for the actions that directly pertain to him, for the management and safeguarding of the assigned fund. Article

• 8)

  The functions of the Petty Cash Administrator are: 1) Administer the assigned Petty Cash Fund, strictly adhering to the limit and concept of the expense, to the authorizations and other norms established in this regulation. 2) Keep the assigned fund in custody, with appropriate security and within the facilities of the General Headquarters of the Fire Department of Honduras or Regional Commands as appropriate. 3) Require that in each supporting document, the destination and reason for the expense incurred be stated. 4) Grant the necessary facilities for the execution of audits by the pertinent areas. 5) Verify the consistency of the supporting vouchers presented for the discharge of petty cash funds. Article 9.- The management of the petty cash fund is conditioned to the observance of the following procedures:

  • 1)

    The personnel requesting a good or service from petty cash shall request it from the person responsible for the management of the fund, through a written request, the following are excepted from this provision: the areas that manage their authorized petty cash boxes by the Department Head.

  • 2)

    Once the fund request is authorized, the requesting personnel shall account for it within a period not exceeding the next business day after receiving the fund.

  • 3)

    In the event that the fund requester exceeds the deadline set in the previous number, the Petty Cash Fund Administrator shall report directly to the Personnel Manager so that the amount may be deducted from the salary of the Fire Department employee, without prejudice to any sanctions that may be applied.

  • 4)

    The fund manager, once the vouchers have been presented by the requester, shall proceed to stamp the "paid" seal on the documents or receipts, which shall contain the following information: a) Receipt or invoice number b) Date c) Business name or name of the establishment or person who provided the service d) Concept of the expense e) Amount 5) For purchases made with vendors who do not issue invoices or receipts, a form shall be prepared, where the general data indicated in the previous number shall be recorded. 6) When invoices and other vouchers contain vices of nullity, such as erasures, amendments, alterations, questionable additions in the date, amount or seals, they shall not be recognized for liquidation purposes, therefore the holders of these funds shall have the obligation to reimburse the amounts expended not subject to reimbursement, within a maximum period of three business days, from the date on which the reimbursement was rejected. Article 10.- To effect the liquidation of the petty cash fund, the manager shall accompany the final vouchers that support the expense, to make the respective accounting entry, vouchers that shall be previously verified by the corresponding Hierarchical Superior, who shall sign each one of the vouchers or receipts. The money remaining from the accounting operation performed shall be deposited in the General Account maintained by the Institution in the Central Bank of Honduras. Article 11.- For the replacement of fixed petty cash funds, the following procedure shall be followed: a) The person responsible for the management of the fund, in order to cover requirements in a timely manner, may request reimbursement when its execution has reached a maximum level equivalent to 50% of the allocated fund. b) For the corresponding reimbursement, the manager shall request the reimbursement of the account equivalent to the amount spent. c) It is the obligation of the Petty Cash Fund Administrator to guarantee the veracity and legality of the documents that support the reimbursement under his responsibility. CHAPTER III OF BOND AND CLOSURE OF PETTY CASH Article 12.- For Petty Cash Administrators, it is obligatory to post a bond, as established by the Law and Regulations of the Superior Court of Accounts. Article 13.- The following shall be grounds for closure or suspension of petty cash: a) When in its management the objectives of its creation have been perverted. b) By order of the General Command of the Fire Department of Honduras. CHAPTER IV INTERNAL CONTROL Article 14.- The Internal Audit Department shall have the obligation and responsibility to conduct ordinary monthly audits and extraordinary audits of a surprise and selective nature, preparing the report in which its conformity or non-conformity shall be noted, reports that shall be submitted to the General Command and Superior Court of Accounts, for their information and decision-making. CHAPTER V PROHIBITIONS Article 15.- It is strictly prohibited: a) The use of petty cash funds for expenses unrelated to its specific purpose, loans to employees or other persons outside the Institution, exchange of checks with postdated dates.