Public Administration Terminology

Public administration
All departments, offices, organizations and other bodies that are organs or instruments of central public
authorities. State and local, whether financed with funds from the regular or extraordinary budget or with
extrabudgetary funds.

public income
Public income is called all those amounts of money that the State and other public entities
receive and whose objective is to finance public expenses.

VAT
It refers to a tribute or tax that consumers must pay to the State for the use of a certain
service or the acquisition of a good.

Collection
Action to collect and also as an amount collected, collection, collection, precaution, care,
document supporting an account or credit, expense, surety, guarantee or bond. It applies
especially to the collection of taxes, contributions, fees, fines, carried out by agents
dependent on the State, the governorates or the Municipalities.

LACAP Law
The purpose of the Law is to establish the basic rules that will regulate actions related to
the planning, awarding, contracting, monitoring and settlement of the acquisition of
works, goods and services of any kind.

Accountability
It is the administrative act through which those responsible for the management of public
funds or accountants inform, justify and take responsibility for the application of the
resources made available to them in a financial year.

Budget allocation
It is an amount intended to cover the Expenses foreseen in programs, subprograms,
projects and budget units, necessary to achieve the programmed objectives and goals.

Budget policy
Set of guidelines that guide the formulation of the Public Budget, through the analysis and
projection process to determine the priorities and ranges of public spending and the
estimation of income from each source of financing, maintaining the budget balance
between income and expenses

Budget units
They constitute the levels of the budget structure, in which the allocation of resources is
carried out, the responsibility in budget management is determined and the monitoring
and evaluation of budgetary results is carried out.

Funding Source
They designate the set of internal and external capital to the organization used to finance
applications and investments.

General budget law

Preliminary budget draft

They designate the set of internal and external capital to the organization used to finance
applications and investments.

AFI Law
Organic law of financial administration of the state
Its objective is to regulate and harmonize the financial management of the public sector
and establish the integrated financial administration system that includes the budget,
treasury, public credit and government accounting subsystems.

Purchase order
It is a document issued by the buyer to order goods from the seller; indicates quantity,
detail, price and payment conditions, among other things.

Acceptance Certificate
That by which the delivery of a finished work is formalized, especially those contracted by
the public Administration. That by which the delivery of a finished work is formalized,
especially those contracted by the public Administration.

Court of Accounts Law

Regulates the organization and operation of the institution in charge of the supervision of
public finances in general and the execution of the budget in particular and the entities
indicated in arts. 195 and 207 of the constitution of the republic.

Escrow funds
These are amounts deposited by a buyer or seller into an escrow account with a neutral
third party where funds are held until a deposit is completed. Funds held in an escrow
account are considered trust funds. They can only be disbursed with written authorization
from all parties to a guarantee.

Refund
Pay. Return.
The return of money that had been disbursed for some purpose. A tax regime may
require payment of an advance amount to the taxpayer; At the end of a certain period,
according to the fulfillment of certain conditions, the State can return part of said money
to whoever had paid.
PEP
Approval of the Budget Execution Programming
The term PEP 'Politically Exposed Persons' or 'Politically Exposed Persons' applies to
people who hold or have held prominent public functions in a country. PEPs, according to
international money laundering laws, are people who, due to their position and influence,
could be the subject of illicit operations by organized crime, both for corruption and
money laundering operations.

POA
Annual operating plan (AOP)
The annual operating plan is a formal document in which those responsible for a billing
entity (company, department, branch or office) list the objectives to be achieved during
the current year.

Strain
Autonomous Port Executive Commission
It is a Salvadoran institution of Public Law with autonomous character and legal
personality, 1 which is in charge of the development of the infrastructure of ports ,
airports and railways of this country.

ISSS
The Salvadoran Social Security Institute (ISSS) is an autonomous government entity in
charge of providing health care and economic benefits to its beneficiaries.

National lottery
It is a public institution attached to the Ministry of Finance. Its origin dates back to 1870,
when it was created by the administration of the Rosales Hospital Charity Board,
beginning its operations with the name “Hospital Lottery.” The objective is to help
institutions that need resources, which are obtained by the sale of lottery tickets.

Request for quotes

It is a request made by a company or an individual, addressed to a manufacturer, business
or service provider, about the costs of a product or service, to evaluate possible
purchases, although it can also be used to compare prices with other suppliers.

Free management
It is the procedure by which institutions acquire goods or services related to their ordinary
needs, available to the public in warehouses, factories or shopping centers, national or
international. / Procedure that also applies to the contracting of works and individual
consultants whose value does not exceed eighty (80) urban minimum wages (Art. 68
Public Administration Acquisitions and Contracting Law).

Technical analysis
It is the study of market action, primarily through the use of charts, for the purpose of
predicting future price trends.
(financial analysis) Procedure used to evaluate the structure of the sources and uses of
financial resources. It is applied to establish the modalities under which monetary flows
move and explain the problems and circumstances that influence them.

Technical specifications
They are the documents in which the standards, requirements and procedures to be used
and applied in all construction work, preparation of studies, and manufacturing of
equipment are defined.

Extension
Granting a longer period, before the originally agreed period expires. Postponement of an
act or fact. Extension of a term. Continuation of a state of affairs for a given time

Holiday
Temporary suspension of work obligations, study or other daily activities to dedicate time
to rest or leisure.

I will pay
It is a title that records a payment obligation. The person who issues it, known as the
subscriber, agrees to pay a second individual (the beneficiary or policyholder) a certain
amount of money within a stipulated period.

Professional services
They are an industry that provides technical or unique functions performed by
independent workers or companies specialized in doing this type of work.

circulating fund
The part of current assets that is financed with permanent resources. It is a measure of
the capacity of a company to continue with the normal development of its activities in the
short term.

Funds requirement

Public spending
The expenses incurred by the State to fulfill its purposes. In reality, those who make the
expenses are the taxpayers. It is the transfer of purchasing power from the hands of
taxpayers. In favor of the servants and producers of the State.
Government budget
PUBLIC BUDGET: It is the management instrument to project public income and expenses,
which allows the provision of goods and services essential to satisfy the needs of the
population, in accordance with the role of the State.

Rent
Regular income produced by a job, property or other right, an investment of capital,
money or privilege. Public debt.

Public funds
They are the income derived from the application of laws, regulations and provisions
relating to taxes, fees, duties, compensations and other contributions, as well as those
resulting from commercial operations, donations or any other title and that belong to the
Central government or the autonomous state institutions or companies

AFI Law
Organic Law of Financial Administration of the stateobjective: Regulate and harmonize the
financial management of the public sector; Establish the Integrated Financial
Administration System that includes the Budget, Treasury, Investment and Public Credit
and Government Accounting Subsystems. DO No. 193, VOLUME No. 393 dated October
17, 2011.

LIQUIDATION OF FUNDS

BUDGET COMMITMENT
It will include any preventive affectation of the budget credit caused by a duly
documented administrative act, through which the competent authority decides to carry
out a budget expenditure and identifies the natural or legal person with whom the
relationship that gives rise to the commitment is established, as well as the goods or
services to be received or, where applicable, the expenses without consideration

INCENTIVE
It is a stimulus that aims to motivate workers, increase production and improve
performance. They are those that are granted depending on the effort of a person and not
on the time that person has remained in the company.

WORK LINE

ADVANCE
ADVANCE, ADVANCE OR PAYMENT ON ACCOUNT: The execution of an obligation or, more
specifically, the delivery of an amount of money when the debtor or obligor complies
before the agreed or set deadline expires. Partial payment on account of another major or
as a deposit, and prior to receipt or use of what is acquired. Advance payment. The
payment made by the debtor when the obligation is concluded as a payment of money or
partial fulfillment of another type, subject to the settlement that the parties or third
parties will carry out.

PUBLIC POLITICS
They are the projects and activities that a State designs and manages through a
government and a public administration in order to satisfy the needs of a society . 1 It can
also be understood as the actions, regulatory measures, laws, and spending priorities on
an issue enacted by a government entity.

NTCIE Specific Internal Control Technical Standards

The set of processes
Continuous and interrelated carried out by the highest authority, officials and
Employees, designed to provide reasonable assurance in the achievement
Of your objectives

UACI
It is responsible for operational decentralization and for carrying out all activities related
to the management of acquisitions and contracting of works, goods and services of all the
units that make up the structure of the National Records Center, giving due compliance to
the Law on Acquisitions and Public Administration Contracting (LACAP) to which it is
subject

START ORDER

UFI
Institutional Financial Unit
Institutional Financial Unit, administratively responsible to the central SAFI for the management of the
institutions and entities included in Art. 2 of the Organic Law of State Financial Administration.

EXPENDITURE MANUAL

CASH REPORT///cash accounting is the analysis of cash transactions, at a given time, in

order to verify if all the cash received has been accounted for and if the balance shown in
this account corresponds to what is found physically at the cash register in cash, checks or
vouchers.

PUBLIC TRANSPARENCY
It is the act that consists of opening government information to the public, to the scrutiny
of society. Transparency does not imply an act of being accountable to a specific person,
but rather the democratic practice of placing government information in the public
display, so that people can review it, analyze it and, where appropriate, use it as a
sanction mechanism.

SIHR
It is the HR information system, whose purpose is the computerization of processes to
support human resources management, is owned by the Ministry of Health (MINSAL) and
is present throughout the national territory.

CIVIL SERVICE LAW

Its objective is to regulate the relations of the state and the municipality with its public
servants, to guarantee protection and stability.

WALK
National Administration of Aqueducts and Sewers

Inpep
National Pension Institute for Public Employees
Official autonomous entity of public law, with legal status and its own assets, whose
purpose will be the management and investment of its economic resources intended for
the payment of benefits, to cover the risks of disability, old age and death, of public
employees; effective November 2, 1975; incorporating public teaching employees as of
January 1, 1978.

Eligible expenses
Eligible expenses are those necessary for the execution of the project, stipulated in the
approved budget and responding to the principles of good financial management and
cost-benefit ratio. All project expenses must be accompanied by the corresponding
original invoice or legalized copy.

Price
It is the appraisal or valuation of a share or economic security with the purpose of
determining its value in the market for the purposes of considering it for purchase or sale.

Public tender
Public Bidding is the procedure through which competition is promoted, publicly inviting
all natural or legal persons interested in providing works, goods and services other than
consulting services.

Economic analysis

Expressions of interest

Arbitration

Restricted endorsement
This type of endorsement nullifies the future negotiability of an instrument. It is
frequently seen in endorsements, such as: Pay to the order of so-and-so Bank "TO BE
DEPOSIT ONLY." The Bank receiving the Endorsement can collect it if it is in charge of
another Bank , and it is the only way in which the title can be transferred for collection
purposes.

Budget encryption

Execution period
Bank reconciliation
It is a fundamental part of internal control, its purpose is to compare the movements
recorded by the bank and the accounting records made in the Institution, in order to
reconcile the balances and reveal any error or transaction not recorded by the bank or the
institution.

Judicial seizures