INTERNAL CONTROL AND ITS INCIDENCE IN THE ADMINISTRATIVE

MANAGEMENT OF LOCAL GOVERNMENTS OF THE PUNO REGION,

PERIODS 2017-2018

YANET YULISA CALLATA ENRIQUEZ

yanet_22_ce@hotmail.com

ABSTRACT

The objective of the research is to determine the incidence of internal control in administrative
management in the Local Governments of the Puno Region according to staff. The study was
made up of 13 provinces of the Puno Region, the sample considered 07 Municipalities of the total
population involved in the Administrative Management process, the variables used: Internal
Control and Administrative Management. The research is of a basic nature and its substantive
purpose, for its determination, information was collected from two defined periods, which were
developed when applying the surveys through the internal control and administrative
management questionnaire on the Likert scale (poor, efficient, very efficient, bad, regular and
good), which gave information about internal control and administrative management with their
respective dimensions, presenting their results graphically and textually. For the elaboration of
this research the deductive, descriptive method was used, likewise the analytical and synthetic
method was used, all this leads us to the conclusions that, improving the Administrative
Management of the state, the internal control mechanisms that implement the Administrative
Management will reinforce the administrative systems linked to the cycle of public spending,
which will improve the deadlines for the formulation, approvals, execution and accountability of
the public resources of the state assigned or generated, when talking about critical processes of
the entity they will only link to the units that intervene in everything that has to do directly with
the use of resources, such as purchasing processes, logistics, storage, among others. The analysis
carried out in the investigation showed a moderate negative incidence between internal control
and Administrative Management according to the Personnel of the Provincial Municipalities of
the Puno Region.

KEY WORDS: Internal Control, administrative management, Internal Control Standards,

budget and management.
INTRODUCTION

Internal control is an effective tool for actions, activities, plans, policies, standards, records,
procedures and methods, including attitudes developed by the authorities and their staff in charge
of preventing risks that affect a public entity and the Administrative management is the process of
designing and maintaining an environment in which working as some team individuals efficiently
meet specific objectives. That is why the importance of this research is focused on determining
the incidence between internal control and administrative management in the Provincial
Municipalities of the Puno Region. Its purpose is to identify if this affects its employees of the
Provincial Municipalities of the Puno Region. The public servants of the Provincial
Municipalities have more and more challenges and demand that is considered a key in the
operation of the same. This importance lies in the fact that public servants are the projected image
of the different Municipalities of Peru. public institutions have to offer quality services, but this
always starts with the staff that works as part of itself; Otherwise it is one of the main
weaknesses.

In this sense, there is an administrative management that must guarantee the offer of many
alternative solutions, also taking into account the leadership of their own officials given their
contribution to organizational success. Finally, the main objective is met: to determine the
incidence between Internal Control and Administrative Management of the Provincial
Municipalities of the Puno Region, 2017-2018.

METHODS AND MATERIALS

Research Methods

Analytical method: It allowed analyzing and evaluating the structure of internal control according
to components in the Administrative Management of the 07 Provincial Municipalities of the Puno
Region.

Synthetic method: It was used to formulate the conceptual framework, formulate conclusions,
reference the background, theoretical framework.

Deductive method: It allowed formulating the hypothesis, obtaining results as well as formulating
the conclusions of the work.
Descriptive method: This method has allowed to delimit the problem; study the bibliographic
material; formulate the hypotheses; collect data, process the data. The type of research is basic
substantive of non-experimental design: cross-sectional and correlational cutting.

Materials

For the data collection, two questionnaires were applied to measure the internal control and
administrative management variables, two pilot tests were initially carried out to measure the
reliability of the questionnaires on a sample of 07 Provincial Municipalities surveyed.

In addition, it was used as data collection techniques: documentary analysis, questionnaire,

checklist and Internal Control standards. The data obtained were classified, tabulated and
processed for analysis and presentation of the results illustrated by tables and graphs.

Population and sample

Population: In the present research work it was carried out taking as a universe 13 Provincial
Municipalities of the Puno Region.

Sample: The workers of the 07 provincial municipalities of a total of 13 provincial municipalities

of the Puno Region were taken as a sample.

RESULTS

In this part of the research work, the results obtained are exposed, analyzed and discussed, which
were facilitated through the elaboration and presentation of the Internal Control application
questionnaires. Closed option questions were asked to the 07 Provincial Municipalities of the
Puno Region that work in the Municipalities. The information expressed in the result of these
questionnaires is based on: Interviews made to the staff that works. A questionnaire was applied
concerning two components of Internal Control, and Administrative Management. This is
because the Risk Control and Evaluation Environment Component are the very important ones if
those already mentioned are not implemented unless the components will be implemented later.

Table N° 1
Internal control and Administrative Management according to the staff of the 07 Provincial
Municipalities of the Puno Region, periods 2017-2018.
 Source: Internal Control and Administrative Management Questionnaire
Elaborated: Executor
It was found that the intersection between the Deficient category of Internal Control and the
Bad category of the variable Administrative Management had the highest frequency with 43%
of the 07 Provincial Municipalities evaluated. The intersection between the efficient category of
Internal Control and the Regular of Administrative Management was the consecutive one with a
big difference, since it only had 29%.

Table N° 2
The Control Environment of Internal Control and Administrative Management according to the
staff of the 07 Provincial Municipalities of the Puno Region, periods 2017-2019.
ADMINISTRATIVE MANAGEMENT
D1. CONTROL TOTAL
BAD REGULAR GOOD
ENVIRONMENT
N° % N° % N° % N %
DEFICIENT 200 57% 49 14% 0 0% 249 71%
EFFICIENT 53 15% 49 14% 0 0% 102 29%
VERY EFFICIENT 0 0% 0 0% 0 0% 0 0%
TOTAL 253 72% 98 28% 0 0% 350 100%
Source: Environmental Control and Management Questionnaire
Elaborated: Executor

It was found that at the intersection between the Deficient category of the Internal Control
Environment dimension and the Bad category of the Administrative Management variable had
the highest frequency with 57% of the 07 Provincial Municipalities of the Puno Region. And also
between the intersection between the Efficient category of the Internal Control Environment
dimension and the Regular category of the Administrative Management variable, it was the
consecutive one with a great difference because it only obtained 14%, but at the same time the
intersection between the Very efficient category of the Control Environment dimension and the
Good category of the Administrative Management variable obtained 0%. This result is
something that was not expected and worries.
Table N° 3
 The Risk Assessment of Internal Control and Administrative Management according to the staff
of the 07 Provincial Municipalities of the Puno Region, periods 2017-2019.
ADMINISTRATIVE MANAGEMENT
TOTAL
D2. RISK EVALUATION BAD REGULAR GOOD
N° % N° % N° % N %
DEFICIENT 221 63% 49 14% 0 0% 270 77%
EFICIENTE 35 10% 46 13% 0 0% 80 23%
VERY EFFICIENT 0 0% 0 0% 0 0% 0 0%
TOTAL 255 73% 95 27% 0 0% 350 100%
Source: Risk Assessment and Administrative Management Questionnaire
Elaborated: Executor
Risk assessment, it was again noted that the intersection between the Deficient category of that
dimension and the Bad category of the variable Administrative Management had the highest
frequency with 57% of the 07 Provincial Municipalities evaluated.
DISCUSSION
Standards and technical documents have been issued that facilitate the establishment of internal
control as a management tool that contributes to efficiency, effectiveness, transparency and
economics in administrative management. Nevertheless; At present, the situation becomes
different since most of the public entities have not established or adapted the internal control
standards in the process of their activities, since there are several studies that demonstrate the
absence of internal controls in the process of its activities and that internal control is a very
effective tool for the fulfillment of goals and objectives in the different municipalities of Peru.
Thus we can mention the research carried out by:
Avendaño (2015), in his research work, the following general objective was raised: to know if the
application of internal control constitutes an effective instrument in the budget execution process
in the executing units of the health sector of the Puno Regional Government. It also concludes:
from the analysis and interpretation of the results obtained, it has been determined that the
inadequate control environment and evaluation of internal control risks affect the level of
effectiveness of the budget execution process in the Government Health Sector Executing Units
Regional of Puno.
Campos (2003), in his research work, it was proposed as a general objective to know if the
application of Internal Control constitutes an effective instrument in Budget Execution in order to
establish the way in which it affects the Procurement Administration. As main conclusions it
indicates: With regard to the Budget Execution the policies used in the Internal Control are
coherent, observing the norms and procedures in all the activities of the supply process,
influencing favorably in the work that is carried out; however, a manual is warranted for its
execution. The objectives established for the Internal Control are satisfactorily achieved, which
allows the management in the Department of Budget Execution to be adequate as expected. The
approach that is developed in the Office of Budget Execution, has been helping management in
this organization, having great influence in obtaining results, since it has full knowledge of the
body and prevents distortions in the system; therefore, it is the most important stage of the control
process.
I agree with Limache (2016) who points out that the implementation of the internal control has
positive effects allowing the formulation to be timely and adequate in the programming phase and
preparatory acts, having to be influenced mainly at the time of formulating and presenting the
requirements of the user areas because from this point will be directed the other procedures
within public procurement.
I agree with Barbarán (2013) who points out that the Internal Control environment helps in the
establishment of institutional goals and objectives; by generating the pattern of the operation of
the CGBVP and the influence on the awareness of all personnel regarding control. Factors in the
control environment include integrity, ethical values, the capacity of the entity's personnel, the
management philosophy and the management style aimed at optimizing the entity. In addition, it
indicates that the risk assessment influences the institutional policies of the CGBVP; as it is a
continuous interactive process and constitutes a fundamental component of an effective internal
control system. Management must examine in detail the existing risks at all levels of the entity
and take effective and timely measures.
CONCLUSIONS
In accordance with the general objective, in this study it confirms that internal control has a direct
impact on administrative management according to the survey of workers from the 07 provincial
municipalities of the Puno Region. Likewise, it is confirmed that the Internal Control has a
significant relationship with the Administrative Management:
First: According to the result of Table N° 1, the existence of deficiencies in the internal control
system in the administrative management process has been determined, which negatively affect
the achievement of the institutional objectives of the Provincial Municipalities of the Puno
Region.
Second: According to the results obtained, the control environment component and the
administrative management, there is no direct relationship, the rules governing the Internal
Control System are not being applied and that is why the administrative management of the
different municipalities of the Puno region is due This does not comply with the goals they have
in each fiscal year.
Third: The different Municipalities of the Puno Region do not have identified the risks that each
of them have and at the same time does not have their risk map drawn up which does not allow
them to meet the objectives that each of the municipalities has.
Quarter: After determining the deficiencies of internal control and its impact on administrative
management this through analysis and evaluation, it is possible to provide solutions through
guidelines, policies to optimize the application of the rules governing the Internal Control System
so that resources of the state be used effectively and efficiently.

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