Institutional Internal Control Government Policy

To Approve the "Governmental Policy of Institutional Internal Control," which is transcribed literally below, for all corresponding legal purposes: "GOVERNMENTAL POLICY OF INSTITUTIONAL INTERNAL CONTROL- Considering the following legal provisions: That Article 245 of the Constitution of the Republic of Honduras establishes that the President of the Republic has the general administration of the State and his powers include the Administration of Public Finance.- That Article 222, as amended, of the Constitution of the Republic of Honduras determines that the Superior Court of Accounts is the governing body of the system of control of public resources.- That by means of Article 1 of Executive Decree Number PCM-26-2007, the National Office for Comprehensive Development of Internal Control of Public Institutions, ONADICI, was created as a specialized agency of the Executive Power responsible for the comprehensive development of the internal control function.- The President of the Republic, as responsible for the Administration of Public Finance, determines to establish as governmental policy the implementation of the institutional internal control process in all entities of the Executive Power, recognizing that such process is indispensable to reasonably ensure the achievement of institutional objectives and transparency, promoting accountability for public management; therefore, extends his support for continuous improvement of internal controls and commits the highest authorities of the Executive Power entities to act accordingly seeking the implementation of mandatory practices included in the Guides that ONADICI issues for such purposes, within the framework of the national system of control of public resources.- For its part, ONADICI in fulfillment of its functions and contributing to the fulfillment of said policy: -Shall advise the superior authorities of the entities of the Centralized Public Administration, of the decentralized institutions and of the decentralized autonomous institutions to coordinate the necessary actions that facilitate the implementation of internal controls.- Shall establish the stages of implementation that will allow obtaining the schedule for the execution of the mandatory practices to be developed.- Shall carry out the monitoring and effective and timely development of the schedules prepared to order the actions that configure the corresponding mandatory practices.- Shall periodically inform the President of the Republic about the progress of the implementation process including the corresponding recommendations in pursuit of the fulfillment of the support and commitment established in this policy. The effectiveness of the internal controls implemented shall contribute to the use, management and investment of public resources and to the achievement of the objectives of the management of Public Finance with efficiency, efficacy, economy, equity, truthfulness, legality, responsibility, transparency, environmental management, integrity, public ethics and priority, thus contributing to -The fulfillment of goal No. 4.5 of the "National Plan" approved by Decree No. 286/2009 which seeks to "Place Honduras in the 90-100 percentile range of the World Bank perception index scale".- The achievement of the objectives of the "Law of Transparency and Access to Public Information": -The fulfillment of the preventive purposes and goals agreed upon in the "Inter-American Convention Against Corruption," of which Honduras is a signatory country. Based on the foregoing, all public administration officials are instructed to apply all the specific technical regulations issued by ONADICI, which are based on the Governing Frameworks issued by the Superior Court of Accounts, to facilitate the implementation and seek the strengthening of institutional internal control.- Given in the city of Tegucigalpa, M. D. C., on the dates of the month of December of the year two thousand ten.- Let it be complied with: (Signed and Sealed) Porfirio Lobo Sosa, Constitutional President of the Republic. As Honorary Witnesses: (Signed and Sealed) María Antonieta Guillén, Presidential Designee.- (Signed and Sealed) Moisés López, Director ONADICI.- (Signed and Sealed) Jorge Bográn Rivera, Magistrate President of the Superior Court of Accounts (TSC).- (Signed and Sealed) Deysi de Anchecta, Magistrate of the Superior Court of Accounts (TSC).- (Signed and Sealed) Miguel Angel Mejía, Magistrate of the Superior Court of Accounts (TSC)".-

This Agreement shall be executed immediately and shall be published in "La Gaceta," Official Gazette of the Republic. Given at the Presidential House, Tegucigalpa, municipality of the Central District, on the sixteenth (17) day of the month of December of two thousand ten (2010). LET IT BE COMMUNICATED AND PUBLISHED. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC MARÍA ANTONIETA GUILLÉN VÁSQUEZ DESIGNEE TO THE PRESIDENCY OF THE REPUBLIC IN CHARGE OF THE SECRETARY OF STATE OF THE PRESIDENTIAL OFFICE