Venezuelan Fiscal Control: Account Demise and Management
Article 55
The Comptroller General of the Republic, via resolution in the Official Gazette of the Bolivarian Republic of Venezuela, issues instructions and establishes policies, standards, criteria, and systems for examining, qualifying, and declaring the demise of revenue accounts, expenditures, and assets of entities or bodies listed in paragraphs 1 to 11 of Article 9 of this Act. This also includes funds managed by private sector entities or persons from these authorities and agencies to meet public interest objectives.
Article 56
For national fiscal control, within their powers and according to the resolution in the preceding article, screening (comprehensive or otherwise), classification, and declaration of the demise of accounts are conducted.
Article 57
Accounts must be examined by national fiscal control within five (5) years from the surrender date. If the test proves the account, it will be granted under the demise of the bill.
In cases of account irregularities, national fiscal control exercises its jurisdiction to investigate and enforce responsibilities under this Act.
Article 58
Following account reviews, fiscal control bodies, within their powers, formulate objections to those who have caused damage to the Republic’s heritage or the entities in paragraphs 1-11 of Article 9. This addresses negligent conduct in resource management and violations of organizational plans, policies, standards, methods, and internal control procedures.
Article 59
The demise of accounts operates as a right within the period specified in Article 57. Unless specifically provided by law, punitive actions and remedies in this Act won’t apply to transactions covered by the account. This is without prejudice to legal actions punishing crimes against public property.
If punitive actions or remedies are exercised within five (5) years as per Article 57, the demise is granted to the entity’s assets for the repair amount, or if actions are dismissed finally.
Article 60
Where defects don’t cause pecuniary damage, the competent inspection body makes relevant comments for adjustments, without prejudice to possible demise grant.
Title II: National Fiscal Control System
Chapter V: Management Control
Article 61
Fiscal control bodies, within their competence, may conduct audits, studies, analyses, and research on activities of entities and agencies under their control to evaluate plans and programs involving these authorities or agencies. They may also conduct studies and investigations to assess compliance and results of government policies and decisions.
Article 62
Fiscal control bodies may, as per the preceding Article, conduct organizational, statistical, economic, and financial analyses and research to determine public service costs, administrative action results, and the efficiency of entities under their supervision, monitoring, and control.
Title II: National Fiscal Control System
Chapter VI: Other Provisions of Control
Article 63
Results and conclusions of fiscal control activities are notified to entities subject to such actions and other legal authorities responsible for corrective measures.
Article 64
Fiscal control bodies may use perceptual control methods to verify the legality, accuracy, truthfulness, and correctness of operations, administrative actions, and contract execution for entities in paragraphs 1 to 11 of Article 9.
Verification aims to check the truthfulness of facts, their existence, and implementation, and to examine if accounting records and systems comply with laws and required techniques.
Article 65
Judges, notaries, registrars, and other officials must send certified copies of documents presented to them to external fiscal control bodies if these documents discard any right in favor of the Republic, states, districts, metropolitan districts, or municipalities. This excludes cases where a fiscal officer is responsible for the referral.
Article 66
In exercising their powers, fiscal control bodies may conduct external audits as deemed necessary in places, establishments, vehicles, books, and documents of taxpayers and responsible parties as defined by the Tax Code, or those who contract, negotiate, or conclude deals with entities under their control, or administer, manage, or keep property or funds of such entities.
Article 67
External fiscal control bodies are empowered to monitor contributions, grants, and transfers made by entities under their control to other public or private entities to ensure they are invested for their intended purposes. They may conduct inspections and establish control systems.
Article 68
Expenditures on state security and defense are limited to intelligence operations by state security agencies (domestic and foreign), border protection activities, and military unit movements during internal or external conflicts or serious disturbances threatening the republic’s peace.
Article 69
Resources of organizations and companies in trust or under supervision of authorities and bodies in paragraphs 1 to 11 of Article 9 are subject to supervision and monitoring by the Comptroller General of the Republic regarding financial administration.
Article 70
The National Treasury’s banking subsidiary is subject to monitoring and control by the Comptroller General’s Office for transactions conducted on behalf of the Treasury.
Article 71
The National Executive body of the Ministry of Finance establishes accounting systems in accordance with this Act and the Organic Law of Public Sector Financial Management.