Urgency Decree No. 067-2009

Urgency Decree modifying Art. 10 of Law No. 28716 URGENT DECREE No. 067-2009 THE PRESIDENT OF THE REPUBLIC CONSIDERING: That, Law No. 28716 - Internal Control Law of State Entities - establishes in its article 4 the obligation of state entities to implement, among others, processes, activities, resources, operations, and institutional acts oriented towards the promotion and encouragement of the practice of institutional values; That, through Law No. 27815 - Public Service Ethics Code Law - a set of provisions is developed oriented towards establishing principles, duties, and prohibitions of an ethical nature that govern all public servants of the entities of the Public Administration; That, by article 10 of Law No. 28716, it has been established that the Comptroller General of the Republic, in accordance with what is established in article 14 of Law No. 27785, shall issue the technical control regulations that guide the effective implementation and functioning of internal control in state entities, as well as its respective evaluation; That, under the auspices of Law No. 28716, the Comptroller General of the Republic has issued Comptroller Resolution No. 458-2008-CG, approving the "Guide for the Implementation of the Internal Control System of State Entities" which, among other things, provides for simultaneous implementation actions in public entities, which involve criteria of discretion inherent to each entity, so considering that such regulation is applicable to the 3,980 Entities Subject to Control, this implies having the same number of entities carrying out the same actions without any guarantee of affinity in the criteria, which does not align with the objectives of homogeneity and uniformity indicated in said Guide; That, the entities of the public administration have Organization and Functions Manuals where the specific functions that each public employee must develop are established, which in many cases, due to the nature of the functions they perform, do not have the appropriate personnel to develop the functions as a member of a Control Committee, which has caused that a large number of entities begin the contracting of advisory services from Audit Societies or first-level consultancies; however, many public entities lack sufficient budgetary and financial availability to meet the expense generated by the immediate application of Law No. 28716; That, in order to avoid the situation indicated in the preceding consideration and taking into account that the new Organic Laws of Functions of most Sectors have not yet been issued, nor their respective management documents that clearly establish the functions of said public entities, nor has the implementation been completed in the three levels of government of the Integrated Public Financial Administration System - SIAF SP version II, it is necessary that Law No. 28716 and the technical control regulations issued by the Comptroller General of the Republic be applied progressively taking into account the nature of the functions of the entities; That, likewise, due to the international financial crisis situation facing the country, it is essential to adopt extraordinary and urgent measures in economic and financial matters that allow achieving the objective indicated in the previous consideration, so that the application of Law No. 28716 and the technical control regulations issued by the Comptroller General of the Republic are applied to entities based on their budgetary resource availability, which, being scarce, must be dedicated, in the first place, to the execution of investment projects in public infrastructure works and public services for the economic development of the country;

In accordance with what is established by subsection 19) of article 118 of the Political Constitution of Peru; With the approving vote of the Council of Ministers; and, With the obligation to report to the Congress of the Republic; DECREES: Article 1.- Modification of article 10 of Law No. 28716 Incorporate as the fourth paragraph of article 10 of Law No. 28716 - Internal Control Law of State Entities - the following: "(...) The regulatory framework and the technical control regulations issued by the Comptroller General of the Republic referred to in the previous paragraph shall be applied progressively taking into account the nature of the functions of the entities as well as the availability of budgetary resources, and must enter into force when the approval of all Organization and Functions Laws of the various Sectors of the National Government and their respective management documents is completed, as well as when the Integrated Public Financial Administration System - SIAF SP version II, which will include the Internal Control evaluation module, is implemented in the three levels of government." Article 2.- Regulatory Adaptation The technical control regulations referred to in the first paragraph of the First Transitional, Complementary, and Final Provision of Law No. 28716, shall be issued by the Comptroller General of the Republic, in concordance with the new text of article 10 of Law No. 28716 approved by this Urgency Decree. Article 3.- Complementary Norms The Presidency of the Council of Ministers and the Ministry of Economy and Finance are authorized to issue the complementary regulations that may be necessary within the scope of their respective competencies. Article 4.- Counter-Signature This Urgency Decree shall be counter-signed by the President of the Council of Ministers and by the Minister of Economy and Finance. Given in the Government House, in Lima, on the twenty-second day of the month of June of the year two thousand nine. ALAN GARCÍA PÉREZ Constitutional President of the Republic YEHUDE SIMON MUNARO President of the Council of Ministers LUIS CARRANZA UGARTE Minister of Economy and Finance