Public Account 2018

These Public Accounts have been prepared according to the requirements of Law # 24,156 of Financial Administration and Control Systems of the National Public Sector and its modifications and supplementary regulations, and the contents of Law # 27,431 of the General Budget of the National Administration for Fiscal Year 2018.

During this fiscal year, in relation to the budget, it is noted that the Ministry of Finance was split from the Ministry of Economy and Public Finance under Decree 2/2017, which modifies the Ministries Law (ordered by Decree 438/92). To this respect, the following bodies are now under the Ministry of Finance: OD 602 – National Stock Committee – National Department of Insurance, and 670 – Financial Information Unit.

Also, the following has been modified:

• The mission and scope of the Ministry of Communications have been taken by the Ministry of Modernization. Thus, the OD 207 – National Communications Entity is now under the latter.
• The sports area, which was under the Ministry of Education, is now under the General Secretariat of the Presidency.
• The duties of the former Financial Administrative Service of Support to the OD 342 were given to the Ministry of Environment and Sustainability.

Decree 698/2017 created two decentralized bodies (OD) within the National Public Administration:

• OD 918 – National Institute of Women, under the Ministry of Social Welfare. The charges, credit and resources assigned came from the National Council of Women, which was under the President´s Office and was eliminated by said Decree.
• OD 917 – National Agency of Disabled People, under the orbit of the President´s Office. The charges, credit and resources assigned came from the National Advising Committee for the Integration of Disabled People (CONADIS) and from the National Committee of Welfare Pensions. Both Committees were dissolved by said Decree.

Also, Decree 95/2018 dissolves OD 912 – National Rehabilitation Service under the Ministry of Health, and the basic actions and budget credit were transferred to OD 917 – National Agency of Disabled People. Thus, for fiscal year 2018 OD 912 only discloses budget execution during the first quarter of the fiscal year.

On the other hand, the OD 915 – National Institute against Cancer, created by Decree 1286/2010 and decentralized by Law 27,285, whose budget came from the Ministry of Health, mainly from Program 43 “Research for cancer prevention, diagnosis and treatment”.

Also, Law 27.275 creates the Public Information Access Agency, which as from budget 2018 is included as a decentralized body under the Chief of Ministers Office.

Decree 801/2018 modifies the Law of Ministries (text ordered by Decree 438/92), in order to make a strategic reordering which allows political aims in relation to a budget reduction. To that respect, some Ministries were merged to centralize the current competences in fewer Jurisdictions. Nevertheless, said measure will be reflected in the budget for fiscal year 2019.

In the Business Public Sector we should mention the incorporation of Aerolíneas Argentinas S.A. y Contenidos Públicos S.E.

On the other hand, under the regulations of article 56 of Law 27.431, the Guarantee Fund for the Small and Medium Sized Companies (FOGAPYME) and the National Development Fund for the Small and Medium Sized Companies (FONAPYME) are excluded; and the Trust Fund for Social Housing, the National Fund of Productive Development (FONDEP), the Trust Fund for the Entrepreneurs Capital (FONDCE), the National Trust Fund of Agro Industry, the Infrastructure Fund of Airports Security, the Fund for the Development of Renewable Energy, the Fund for Integral Medical Assistance to the Community – Decree 34/15 and the Trust Fund for Universal Health Insurance have been incorporated.

Under Article 4 of Resolution 10/06 SGN, the Financial Administrative Services continued presenting to the National Accounting Office the accounting certifications of their respective Internal Audit Units and those related to the information at closing of fiscal year 2018.

The National Accounting Office continued actively working in the project of the e-SIDIF, which allowed for the technological update and operational improvement of the same, based on the idea of a unique product capable of satisfying the information management needs of the Ruling Bodies and the Financial Administrative Services, and the use of the technology of Internet and free software tools to reduce development and deployment costs. The documents connected with the operational definitions, activities diagrams and users interface prototypes was used as a resource for the construction of said informatics system.

During fiscal year 2018, the following modules were deployed: Expenses, Revolving Funds, Collection and Bank Reconciliation in 9 Bodies; Accounting in 6 Decentralized Bodies and e-Recauda Module in 3 Financial Administrative Services.

In relation to the Accounting System, a greater detail of the Accounts List for the FASs resulted in an improvement of the matrixes connected with the Budget to improve the automatic registration of transactions of the National Administration.

In relation to multi monetary accounting, it is noted that the management receipts backing up and giving origin to the accounting registrations have the information related to the transaction exchange of origin and if the same is different from the official exchange, the original amount is shown together with the exchange rate of said transaction. In this way, it is possible to obtain multi monetary information.

On the other hand, automatized bank reconciliation facilitated the information contrast tasks between bank extracts and accounting registrations made, thus having an adequate registration of cash and cash equivalents as well as the adjustments needed at a certain moment.

It is important to mention that the accounting module has modern data warehousing tools for the use of information, Business Intelligence (BI). This tool provides the accounting majors, Balance Sheets and other data output either for the elaboration of the equity statements disclosed in the Financial Statements, or the Statement of the Treasury, as well as any other output helping the data analysis tasks within the e-SIDIF. From the production data base, datamart is generated, on which the said tool is used.

During Fiscal Year 2018, BI deployments have been undertaken in the following Financial Administrative Services: 203 – National Agency of Roads Security; 917 – National Agency of Disabled People and 918 – National Institute of Women (INAM).

Supplementary, there was a development and enhancement of the applications used by this National Accounting Office for the elaboration and consistency control of the Financial Statements, Balance Sheet and Tables.

Also, with the purpose of anticipating to problems and inconsistencies for the fiscal year as a whole, Disposition 07/18 NAO set the guidelines connected to the information to be disclosed to this Accounting Office, as of June 30, 2018, by National Universities, Public Business Companies, Public Entities and Trust Funds.

This requirement resulted in timely information affecting the accounts of the National Public Sector for the first semester, and also helped in the elaboration of the Public Accounts, as it helped in the analysis and adjustments to be made to the accounting and financial registration.

Also, it is noted that in relation to the closing of the fiscal year, Disposition 9/18 NAO approved the “Guidelines for disclosure Closing 2018” with the purpose of helping the Bodies with the presentation of the documents. In the case of National Administration bodies, different procedures have been set for disclosure taking into account if the body has the Electronic Files module in the Management system of Electronic Documents (GDE).

As for fiscal year 2017, said regulation sets the use of SIFEP (Financial Information System for Public Business Enterprises, Trust Funds and Entities excluded from the National Administration Budget) as a disclosure tool for the information of the entities included in points b), c) and d) of article 8 of Law 24.156 and incorporates the National Universities which as from this fiscal year presented their information through the SIFEP.

It is noted that the SIFEP developed by the Secretariat of Finance is a platform of input and consult of information of the fiscal year closing of said entities. Also, the information entered to the SIFEP can be used with tools of Business Intelligence, thus helping the consolidation of the information disclosed with the registries of the e-SIDIF and the analysis of the tables and financial statements disclosed under the closing regulations.

During fiscal year 2018, tasks were continued in order to adequate the normal management of the General Filing Office of Financial Documents of the National Administration to the requirements of IRAM-ISO 9001:2015 standards; and significant improvement was achieved in the productive systems and thus an increase in the operator productivity.

This has been achieved through the systematization of pilot tests from the constant data analysis on the operative performance of said File. Also, the system has been given a more preventive character as a whole, which allows for an advance detection of products which are not up to the established requirements and thus the operative costs and detention processes have been reduced.

It is also noted that during September 2018 a recertification audit of the Quality Management System was undertaken by the Certifying Body, for the services of “Documents Digitalization, description and storage, received under Disposition 46/98 NAO. Service to the System users” under IRAM-ISO 9001:2015 Standards. This process was initiated in 2006 and it is aimed at the satisfaction of users and a constant improvement of our processes.

Also in the same month, the National Accounting Office and the National Treasury Office have successfully undergone the recertification audit for the process “Cancellation of Payment Orders by bank transfers Treasury Payer”, under IRAM Standard ISO9001:2015, which was certified for the first time in October 2009.

On the other hand, during the fiscal year, there was a reassignment of resources and priorities in the management area, incorporating new tasks to optimize the preservation and storage services.

The National Accounting Office functionally interacts with the Government Real Estate Administration Agency (AABE) under the competences attributed by the Financial Administration Law and the Control Systems of the National Public Sector 24.156 and article 91 of its Regulatory Decree 1344/07.

Supplementary, there is a constant process of analysis, implementation and update of the conceptual guidelines of the Accounting Registration Module of the SIENA, which is administered by the AABE. Said module generates closing tables of the FASs of the Central Administration and supplementary reports which provide the necessary information for the accounting registry in the Financial Statements.

In relation to property under article 78 of Law 27.431, the AABE shall be the Ruling Body, centralizing all the administration of property and real estate of the National Government, and having the exclusive administration of real estate of the National Government as long as this is not the task of other governmental bodies.

It is noted that each jurisdiction shall be in charge of the administration, custody and possible disposition of the property and cattle given to the services under their rule.

Also, article 2 of Decree 895/18 creates within the AABE the National Inventory of Property and Cattle of the Government (IBYS), which shall be the unified registry contributing to a correct follow-up and control over said assets which are part of the equity of the National Government and which shall comply with the principles of transparency and integrity.

To this respect, the National Accounting Office continued working with the former Ministry of Modernization and the AABE in the development and implementation of the Property and Cattle Administration System. There will be future integration of the e-SIDIF.

The National Accounting Office continued with the coordination of the Deployment Project of the e-SIDIF in Provinces, as already done in La Rioja. In 2018 several meetings, control and advance reports were made with the provinces of Santa Cruz and Catamarca.

It is important to mention the “V Meeting of Jurisdictional Accounting Offices” which took place on November 23, 2018 at the premises of the Air Force Circle, in the city of Buenos Aires. Officers from the accounting areas under the FASs took part in it.

During said event, the following issues were addressed: “Public Private Involvement”, “Accounting aspects of the Public Private Involvement”, “Resources Module of the e-SIDIF”, “Innovation in the Registration of Property and Real Estate”. There was also a Workshop “Ideas for the improvement of management in the jurisdictional accounting offices”, in order to enhance the management skills of the FASs.

The V Forum of Governmental Accounting Offices of Latin America (FOCAL), which was organized by the National Accounting Office, was held at the Salon Dorado of the Legislative Offices of the City of Buenos Aires on September 12, 13 and 14, 2018. The following took part in the event: the National Accountants and/or Accounting Directors of Argentina, Brasil, Bolivia, Chile, Colombia, Costa Rica, República Dominicana, Ecuador, El Salvador, Guatemala, Honduras, México, Panamá, Paraguay, Perú and Uruguay. Also, delegations of the IMF, World Bank and IDB and the IFAC. Said Forum was a meeting point which allows for analysis, exchange of experiences, knowledge and practices for the professional and technical development of governmental accounting. The agenda developed was oriented to “Challenge of Accounting of Private Public Associations”, “Lessons learnt on the process of IPSAS adoption” as well as “Proposed Strategy and Work Plan IPSASB 2019 2023”, among others.

From November 14 to November 17, 2018 the National Accounting Office took part in the “XXXIII Congress of Accounting Offices of the Argentine Republic”, in the city of Ushuaia, Tierra del Fuego. The issues addresses were: “Accounting matters between the Public and the Private Sector”, “Public Management by result”, “Contracts with Public-Private participation: acknowledgement, control and presentation of economic facts”, “The NIIF in Governmental Companies” and “Elaboration of Financial Statements of Public Entities”, among others.

As the additional Registration Authority of the Ministry of the Treasury under the regulation issued by the National Bureau of Administration and Digital Signature, this Ruling Body continued with the tasks connected with the Digital Signature, validating the identity of those applicants of digital certificates to be used in the e-SIDIF applications, which jurisdictions have not become a Registration Authority.

In relation to Active Transparency, the National Accounting Office is complying with the commitments assumed by the Under secretariat of Budget in the III National Plan of Open Government, elaborating executive briefs of the Financial Statements of free access. One of the same, adapted to the citizens named “Report of Citizens Management” and the other one addressed to the academy “Report of Management Procedures”. These reports have a double use. They promote the accountability for the fiscal year and also explain the concepts that different groups of users need to generate the necessary skills to understand and analyze the public accounts.

Also, the NAO daily updates the Open Budget Site and takes part with the DGSIAF in the elaboration of tutorials to help the citizen in the navigation of the site and the handling of open data.

Finally, the NAO, the DGSIAF and the ONP have a close and collaborative relationship with the Civil Organizations, promoting the involvement of citizenship.

In relation to the Budget System, we should mention that the National Budget Office, under the control of the Under secretariat of Budget, made its best to set the proper procedures for the elaboration of the National Budget 2018, under the terms of Law 27.341 and its distribution by Administrative Decision 6 dated January 12, 2018.

To such end, the budget formulation process was made together with the specialized areas of the former Ministry of the Treasury, which are traditionally part of the Budget Formulation Support Group (GAEP). The creation of the GAEP is based on Article 24 of Law 24.156 of Financial Administration and its regulations, and thus, its formation is annual by Resolution of the Ministry of Treasury, and also includes the budget formulation chronogram and the determination of tasks to be performed by each member of the GAEP and the jurisdictions and entities of the National Administration.

The formulation of the National Budget for year 2018 was made under Resolution 251 of the Ministry of the Treasury, dated June 8, 2017.

The National Budget Office enforced Disposition ONP 56/2016 which approved the “Manual for the Budget Formulation of the National Administration, which was made known by Internet so that the jurisdictions and entities could program their budget for said period. Through Disposition ONP 123 of April 21, 2014 the forms which are part firstly of the Preliminary Budget and secondly of the Budget Drafts of the Jurisdictions and Entities, as well as the supplementary information documents, are digitally signed and communicated to the National Budget Office using the “e-SIDIF-FOP” application.

This process was successful and helped with the elimination of paperwork for a great amount of information generated in the complete process of budget formulation, as well as being a tool for the electronic file of back up documents.

Based on the chronogram aforementioned, the budget formulation for fiscal year 2018 related to the Capital Expenses was centralized by the National Department of Public Investment (DNIP) and coordinated by the Chief of Ministers Office, according to the load of information the bodies of the National Public Sector made in the BAPIN III, and according to the priorities of Public Investment determined by the National Government.

On the other hand, the “Manual for the Budget Formulation of Public Companies”, approved by Disposition 158/2011 of the National Budget Office, was still in force for the Budget Formulation for 2018 of said bodies.

Also, tasks were continued for the incorporation of results indicators to the Physical and Financial Follow-up System of the National Budget, adding a special annex to such ends, with its methodological aspects.

Tasks were continued on the Physical and Financial Follow-up System of the physical aims of several programs part of the National Public Administration and which follow policies of public works, art and culture, health, science and technology, penitentiary, agriculture, among others.

Said results aims and indicators are disclosed in the reports of Annex II of the Financial Accounts of Budget Management in the Jurisdictions and Entities of the NPA. Also, they are shown in the corresponding Physical and Financial Execution Table of the programs part of the National Budget.

In relation to the coordination of the budget execution for fiscal year 2018, the tasks related to budget modifications, execution programming of the budget and its evaluation, were performed under the regulations of Law 27.341 of the General Budget of the National Administration for year 2018 and its distribution through Administrative Decision 6/2018, as mentioned before.

It is to be mentioned that the budget execution of resources and expenses of the National Budget 2018 was made under the budget classifications for the National Public Sector approved by the Resolution 179 of the Secretariat of Finance, dated September 22, 2016, published in the 6 ^th edition of the “Budget Classifications Manual for the National Public Sector” and made public by Internet, updated by the modifications in the institutional structure of the same.

In relation to the Treasury System, during fiscal year 2018, with the purpose of enhancing the management of Revolving Funds, Internal Revolving Funds and Cash, a new payment system was implemented called Tarjeta de Compra Corporativa (Corporate Purchase Card) and the training was completed for a total of 118 FASs within the implementation chronogram.

Also, tasks were undertaken for the implementation of the internal regulations model for revolving funds, internal revolving funds and cash for the jurisdictional treasury offices under the National Executive Branch, set by Resolution 225/2018 of the Secretariat of the Treasury and dated October 29, 2018. Under the same, the Bodies shall adequate their Internal operating regulations, regardless of the registration system in use, to adjust to the specific characteristics of the institution.

In relation to the Non Tax resources collection e-Recauda, the implementation of the same was continued in new bodies, and at closing of fiscal year it was operative in 28 entities of the National Public Administration. On the other hand, tasks continue to achieve new implementations under the Strategic Plan of the National Treasury Office.

Within the fiscal year and in relation to the Quality Management Certification, the update of the same has been undertaken in the two processes that were granted the ISO 9001:2015 certification in the following:

1. The Process of payment orders cancellation by bank transfer Treasury payer.
2. The Automatic Bank Reconciliation Process under e-Sidif of the Single Treasury Account 3855/19, with resources coming from the Federal Co participation of Tax Revenue – Law 23,548.

As for the operation of the Treasury Single Account System, the list of Financial Institutions operating as Payment Agents of the System was enlarged, with new Banks, being now a total of 40 bank entities.

On the other hand, the “IX Latin American Seminar of Public Treasuries Management” of the Forum of Governmental Treasuries of Latin America (FOTEGAL) was organized, which was attended by the heads of the treasury offices of the member countries, delegates of the World Bank, the IDB, the IMF, international lecturers, members of the National Government, of the General Treasury Offices and Provincial Governments and authorities of the City of Buenos Aires.

In relation to Salaries and Work of the Public Sector, during 2018 the Budget-Salaries Evaluation Department, former National Bureau, has taken part in interjurisdictional bodies such as the Technical Advising Committee of Salaries Policies of the Public Sector and conventional such as the CoPAR, the CIOT, the CyMATand the CoPIC of all the homologated Collective Labour Agreements by areas and their corresponding jurisdictional delegations.

In relation to the Collective Labour Agreement for the A.P.N. - Decree 214/06, the following measures have been implemented:

• The result of the Fourth Clause of the Agreement homologated by Decree 445/17, as of 12/31/17, under the IPC made by the INDEC, result of the variation between December 2017 and December 2016 was instrumented. (Decree 266/18).
• The retributive updates were implemented to the permanent and temporary staff. Also, the possibility of calling a Salaries Negotiation Committee was agreed on in March 2019 and in relation to the fiscal conditions in force, in order to evaluate potential mechanisms to adequate the salaries pyramid, in case there were an increase of IPC (INDEC) higher to the agreed one for the economic fiscal year.
• The amounts were updated in relation to the Monthly reimbursement for Preschool Expenses, Tickets, Food Expenses, Transfer Expenses and Additional for Services in Antártida.
• As a consequence of the salaries measures adopted, it was necessary to modify the ceiling of regular, common, permanent, monthly gross payment of the agents performing extraordinary services, except for those services required by third parties, setting an amount of $ 20.246, $ 21.425 and $ 22.604 as from July 1, August 1 and September 1, respectively (Decree 584/18).
• Within the same area, the Extra payment for attendance was prorogated by Decree 446/17, for another year, from 6/1/18 to 5/31/19, and the amounts were risen, as from 6/1/17 to 5/31/18. (Decree 961/18 Annex I).
• Later, two amounts not included in the salary were paid, the first one was $2000 to be paid with the salary of October 2018, and the second one $4000 to be paid with the salary of November 2018. (Decree 961/18 Annex II).
• After that, a fixed amount of $5000 was paid on December 2018, which was also paid to staff outside the CCTG for the APN.
• Lastly, within the CCTG for the APN, homologated by Decree 214/06, two Leaves were incorporated, Leave for Genre Violence and Leave of Birth (Decree 1086/18 Annex II).
• Under the Collective Labour Agreement for Civil Staff and Teachers of the Armed and Security Forces, a new amount of Index I is agreed at $ 9,50 as from July 1, 2018.

On the other hand, other measures to update payments were implemented as follows:

• Payments to members of the Directory of the National Arts Fund, under Article 4 of Decree 1750/05 and its amendments.
• Value of additional payments applicable to Teachers and Helpers of the ISER (Instituto Superior de Enseñanza Radiofónica).
• Value of class hour for the teachers of the jurisdictions within the Central Administration and bodies included in Annex I, Decree 1536/08.
• Monthly payment for the position of Head of the ISER.
• Payments for the positions of rector, Controller and Helper of Special Assignments of the National School of Librarians of the National Library under Decree 1530/09.
• Payment to the General Secretary and Provincial and Regional Representatives and the Theatre Issues of the Instituto Nacional del Teatro.
• Value of the Basic Module under article 2 of Annex III to Decree 2314709 of the Payment Regime for the staff of the National Administration of Civil Aviation and monthly payment of the Administrator.
• Value of the additional payment for services in the Antarctica for military staff, under Law 23.547, for the military staff under article 1 of Decree 690/11 and its amendments.
• Value for the assignment of scholarships for the Ministry of Health for National Resident Professionals being trained in Public Institutions of Provincial Jurisdictions.
• Payment of intelligence civil staff of the AFI (Federal Intelligence Agency).
• Payment of National Resident Professionals working at Hospitals and Bodies under the Ministry of Health and the Hospital de Pediatría S.A.M.I.C. "Profesor Dr. Juan P. Garrahan".
• Salaries of the members of the Directory of the Consejo Nacional de Investigaciones Científicas y Técnicas (CONICET).
• Payment to the staff of Navy Departments.
• Payment to members of the Military Priests Area.
• Payment of the Services Hiring Regime under Decree 2345/08.
• New amount per hour for Custody Services for the staff of the Federal Police, under article 409 of the regulations of Law 21.965, passed by Decree 1866/83 and its amendments, for $ 118.00.-
• Rise of the Monthly Payment for the Military Staff of the Armed Forces, according to their level, their skills, responsibility and dedication for their activity, under the regulation of Chapter IV – Salaries – Title II of the Military Staff Law 19.101, passed by Decree 1081/73 and its amendments.

Under Law 14,250 salary agreements were agreed upon for the staff of Lotería Nacional S.E, Dirección Nacional de Vialidad, Ente Nacional de Obras Hídricas y Saneamiento, Administración General de Puertos (AGP), Empresas de la Actividad Ferroviaria administradas por el Estado.

In relation to the Higher Authorities of the National Executive Branch and the Authorities of Bodies, Companies, Public Business, Liquidators and Sub liquidators of Residual Entities, Regulatory Entities and Control Entities, their payment were updated with the same percentage of the criteria used for the rest of the staff of the National Public Administration.

The monthly data flow of work at the National Budget Office was kept for the specific purposes of the same, as well as through the Budget Elaboration System of Staff Expenses – e-PROA.

The tasks necessary for the elaboration of chapter “Work and Salaries of the Public Sector” were undertaken for the quarterly publication of the Fiscal Bulletin of the Secretariat of Finance.

The Agreement of joint work was kept with the National Department of National Accounts (DNCN), under the INDEC of the Ministry of Finance, for the input to the National Accounts System (SCN) and the Product Requirement Matrix (MIP) of estimations about work within the National Public Sector, as from the information of the data basis of the SIRHU, under the Program System of National Accounts Argentina 2004.

To that respect, during 2018 and according to the foreseen schedule, there were estimations for employment, staff expenses and average expenses for staff on a monthly, quarterly and annual basis for 2017.

Additionally, estimations were continued of the payment given to workers and staff according to their economic activity and geographical area, for every province, for year 2016.

Under the framework of the activities developed by the INDEC for the elaboration of the Salaries Variation Index (CVS) – Decree 762/02 -, the information for the National Public Sector was provided on a monthly basis during 2018 for the Department of Salaries Budget Assessment. Information was given as required for the Statistics Annual Book 2017, which is published by the INDEC under article 36, point a) of Decree 3110/1970, regulatory of Law 17.622.-

The deployment of Local Module of Management Information of the SIRHU was continued, training 228 people in 20 courses given in Jurisdictions / Entities and Public Companies. The deployment of the MLIG to new jurisdictions and entities has provided a higher quality of information to the SIRHU, eliminating the physical support of documents, reducing the timing and processing of data and introducing several improvements in the services of the SIRHU. There were tasks of follow-up, control and advice for the charge, payment orders and management modules, in the 26 Jurisdictions and Entities that already have the Local Module.

During 2018, activities continued in relation to the study and analysis of Expenses on Staff. Under the same, there was an analysis of the inter annual evolution of Point 1, Expenses in Staff, separated by point and partial point, of Employment, for all the Jurisdictions and Entities of the National Executive Power and Other Entities of the Non Financial National Public Sector, as well as the elaboration of quarter projections with data from the SIRHU.