Bill 28.

Summary.

The bill proposes establishing a state regulatory compliance auditor in every government entity that manages a budget. The auditor would conduct and oversee audits and investigations into the entity’s operations, promote compliance with rules and efficient procedures, prevent and detect irregularities, and recommend institutional policies. The auditor would be attached to the internal audit office and have access to training, professional development, and continuing education in auditing, investigations, and related subjects.

The auditor would formulate policies to direct and coordinate administrative audits and investigations. The auditor would review regulatory procedures before and after administrative activity, investigate possible irregularities or losses of public assets, and examine operations to produce reports with conclusions and recommendations. The auditor would verify applicable requirements and laws, document facts through questionnaires administered to public officials and private individuals, and investigate breaches of the institution’s organic or special law and its regulations. During an investigation, the auditor would keep the names of persons implicated confidential. The auditor could request information and evidence from individuals and public or private entities and access the institution’s facilities, records, and documents. Failure to comply with a request could be reported to the National Authority for Transparency and Access to Information (Autoridad Nacional de Transparencia y Acceso a la Información). The auditor would also submit an annual report on investigations, findings, and actions taken.

Internal audit staff would be independent of outside influence and interference. They would document findings and report them to the appropriate bodies when they identified matters beyond the scope of internal administration; the bill exempts them from civil, criminal, or administrative liability for making such reports. At the auditor’s request, the internal audit office would undergo a special audit by the Office of the Comptroller General of the Republic every 2 years. Its staff would support investigations, assess goals, rules, and information systems, propose improvements to internal controls, and assist competent bodies in obtaining evidence. Matters under investigation could not be disclosed to third parties without the auditor’s authorization; violations would be sanctioned under the Internal Personnel Regulations.

The auditor would review the findings with the officials responsible for the activities examined, unless the findings required a different approach, and record their views. The auditor would then issue a preliminary report. The responsible officials would have no more than 30 calendar days to comment in writing on each conclusion and recommendation; if they disagreed, they would explain their reasons and, where applicable, their legal basis. The auditor would assess those comments, decide whether to revise the report, and deliver the final report to the institution’s highest authority.

The highest authority would have 180 calendar days from the final report to decide on its recommendations. Within the first 60 days of that period, the authority would inform the auditor of decisions made or planned, including a decision that no action is warranted, an action plan setting out measures, dates, and follow-up documentation, or an explanation of recommendations it considers invalid. Officials would carry out the agreed actions, and the auditor would verify that they match the plan. The office would provide a confidential telephone line or other means of receiving anonymous complaints. Anyone submitting a false or reckless complaint would be subject to sanctions under the institution’s Internal Regulations, without prejudice to possible criminal liability. The bill provides that it would take effect upon promulgation in the Official Gazette. Its provisions concern the National Authority for Transparency and Access to Information, the Office of the Comptroller General of the Republic, public entities that manage budgets, their personnel, and individuals or entities that provide information or submit complaints.