The Board is processing the venia for the Court of Auditors to analyze the viability of the twelfth requested by the Executive
The Departmental Board processes the application for a new twelfth: Maximiliano Abraham explains the process and highlights its importance.
The Departmental Board of Cerro Largo has been working in the last hours in a key issue for the financial functioning of the Intendencia: the application for the use of a new twelfth, an instrument that allows the departmental government to access resources of free availability through a Afisa trust.
The mayor of the Maximiliano Abraham National Party, who currently coordinates the Blanca bench at the Board, explained in detail the administrative situation and the steps that are being followed. First, it made it clear that it is not a definitive approval, but an initial authorization that enables the analysis by the Court of Accounts.
“The other day we received from the Executive the application to grant the vene for the twelf Abraham explained.
Although this previous procedure is still pending, from the Board it was considered that there is no legal impediment to begin processing the new twelfth, which is why the request was high and the report of the Court of Accounts is now awaited.
“We communicated with the mayor and informed him that also, beyond that the payment was not yet, the departmental board could be asked for. The Board is sending these days to the Court of Auditors, although it was not yet sent because the accountant’s report was missing, so that they are issued, and with that report later to vote, grant or not come to it.”
Abraham stressed that the procedures are independent of each other, which means that, although the Board grants the venia, that does not automatically enable the use of the funds. In order for the Executive to access that money, it will be necessary for the banking system to consider it a credit subject, which implies that the previous twelfth should be settled.
“They are separate procedures. One was the payment of the previous debt and now the new twelfth is sent to the Court of Audit procedures with them. “
The nationalist mayor also referred to the previous situation, when the relocation of the trust was discussed, and considered that it did not correspond to send that resolution to the Court of Accounts, since it did not imply a modification in the available funds.
“Actually, when the relocation of the trust were made, funds were not being touched, they were the same funds that were being redistributed. Then we understand that at that time it would not have been necessary Accounts. “
Despite administrative complexities, Abraham believes that the process is advancing normally and that the different steps are being fulfilled in accordance with institutional requirements. In turn, he highlighted the relevance he has for the Executive to have this type of financial tools.
“When we assumed this year, that we had the coordination of the bench, on the day of the assumption we said precisely that we seemed important to give the governance tools to the government, that is, to the Executive. The twelfth is very important, more knowing the financial situation in which the commune is located.”
The twelfth, Abraham recalled, is an instrument that allows access to resources of free availability, that is, money that the intention can use for different needs without being conditioned to a specific purpose. Its use is planned to distribute during the entire period of government, and is especially useful to face specific commitments such as paying wages or covering advances in works, while future income is expected.
“It is a free availability money that they can be using for five years. And well, that often allows the salaries difference, sometimes completing some work and then, when the funds come to the opposite, recovering that money. But it is a free money of availability that is undoubtedly very important in operation.”
In summary, the process of the new twelfth is in an intermediate stage. The Departmental Board is waiting for the accounting report to send all the documentation to the Court of Accounts. Once this agency is issued, the Finance Commission will evaluate the terms and prepare the report that will be submitted to the plenary for its vote. If the VENIA is approved, the Intendencia may initiate negotiations with the financial institutions, although the effective access to the credit will be conditioned to the cancellation of the previous one.
Meanwhile, from the departmental ruling, it is committed to maintaining the institutionality of the process and guaranteeing the transparency of each of the stages. For Abraham, support for these tools is not only a technical issue, but also political:
“Giving governance means allowing the government to work, and these are decisions that have real impact on people’s day to day. It is about accompanying from our role, while controlling, but also without putting unnecessary obstacles.”
Infographic
* Bureaucratic process: the payment of the previous twelfth has not yet been completed due to bureaucratic issues related to the readjustment of the Afisa trust.
* Independence of procedures: The Board can send the application to the Court of Accounts regardless of whether the previous payment has been made.
* Conditions for the use of funds: The Intendance can only use the twelfth once the bank considers it a subject of credit and the previous twelfth is paid.
* Importance of the twelfth: The importance of the twelfth is highlighted as a governance tool for the Executive, allowing to cover salaries differences and complete works.
