Centralized vs. Decentralized Management Systems
System Features: Centralized Management
- These competing bodies extend their territory without prejudice to deconcentrated regional or provincial units but always depend on a central power. For example, the SII or the National Treasury of the Republic.
- The central body defines and makes the decisions. The local bodies may take decisions, but in the form of a delegation of authority, subject to the local bodies’ own powers granted by the law that created them. This delegation of authority is made under an administrative act, whether a decree or a resolution.
- The staff of the regional or local services are appointed by the central hierarchy on whom they depend.
- The zonal or local agencies do not develop independently of the central power but are created in the same law that provides the service.
Characteristics of the Decentralized System of Management
- A legislative act is created independently of central power.
- It is created to meet specific, more local needs.
- They are not subordinate to any agency of the central administration (administratively speaking), subject to the supervision of the President of the Republic.
- Their authorities are their own and theoretically generated by popular election. In our country, that only happens with the municipalities; in the case of other public entities, the High Civil Service operates.
- They have their own assets, independent of the assets of the Treasury. They will have the same autonomy to manage their assets and to define their investment.
- They are subject to audits, as are all the organs of government (this is also valid for centralized management), and their functions are appointed by the supreme head of the institution.
Types of Control
1. Legal
Adherence to constitutional provisions, laws, and regulations. The two organizations of this type of control are the Constitutional Court, regarding the constitutionality of the DFL, and the Comptroller General of the Republic (CGR), regarding the supreme decrees signed by the President of the Republic or acts or decisions of superiors of service. In other words, the CGR follows the law and does so by making a point.
2. Accounting and Finance
The review of the investment of public funds.
3. Preventive
Before or after the execution of the act, decree, or resolution. For example, the CGR.
4. A Posteriori
It is performed to determine whether administrative responsibilities exist once the act has been enforced and has been executed against the law. For example, special audits of the CGR.
5. Internal or Hierarchical
This one falls into the supervisor regarding the operation of the organs and the performance of its personnel. Both the LOC General Bases for the Administration of the State in Article 11 and the Administrative Statute in Article 64, letter a, extend this control to the efficiency and effectiveness in meeting the objectives set and the legality and appropriateness of performances.
6. External
The administration’s own organs other than the CGR with respect to another body of government or, on occasion, for private entities.