P.R. Laws tit. 23, § 103
(a) The Office of Management and Budget shall advise the Chief Executive, the Legislative Assembly and the government bodies, under the rules, regulations, instructions and orders prescribed by the Governor, on those matters related to the budget, programs and administrative management, as well as on matters of a fiscal nature related to his/her functions; it shall perform the necessary functions to allow the Governor to submit to the Legislative Assembly the Annual Budget of Capital Improvements and Operating Expenses of the Government, including the Public Corporations; it shall ensure that the execution and administration of the budget by the public bodies is conducted according to the laws and resolutions governing appropriations, with the soundest and most adequate fiscal and management standards, consistently with the provisions of the Fiscal and Economic Growth Plan approved in accordance with the Puerto Rico Fiscal Responsibility and Economic Revitalization Act (“the Fiscal and Economic Growth Plan”) and the programmatic objectives for which public funds are appropriated or provided. It shall evaluate the programs and activities of the public bodies in terms of their economy, efficiency and effectiveness and shall submit reports to the Governor with recommendations for their implementation. It shall prepare and maintain control of all those fiscal and budgetary documents needed for the administration of the budget and shall carry out the pertinent changes, amendments or adjustments subject to the legal provisions and the guidelines established by the Legislative Assembly and the Governor. It shall remain up to date with the new currents and trends in the budgetary and managerial aspects of public administration, in order to evaluate and adapt those techniques, methods and viewpoints that apply to the local administrative field, in the process of formulating and executing the budget, as well as in program evaluation, administrative analysis and operational and administrative auditing. It shall also propose any legislation deemed necessary and convenient to include said currents and trends to our budgetary and administrative processes.
(b) The Office shall have the following powers:
(1) Functions connected with the drafting of the budget:
(A) To require from the various public agencies, corporations and political subdivisions of the Government of the Commonwealth of Puerto Rico, on the date it shall determine, the budgetary petitions with the operating plans and corresponding justifications, and all information of a programmatic, fiscal and administrative nature, proposed expenditures, financial and operational statements, and any other necessary information.
(B) To bring together, correlate, review, reduce or increase the budgetary petitions of the various Commonwealth agencies, except as provided in § 104(a)(7) of this title.
(C) To have access, with the prerogative of examining any books, financial statements, documents, reports, studies, papers or files of the government agencies or public corporations.
(D) To hold meetings with the directors of the agencies.
(E) To prepare financial, program, administrative and operational analyses of all public agencies, including those that operate with their own funds, or United States Government grants.
(F) To take into account and include the indications and recommendations contained in the studies and operational audits and management analyses carried out in the agencies during the analysis of the budgetary petitions thereof.
(G) To obtain from the Electric Power Authority an annual energy consumption statement for the various government bodies, itemized by entity, and to report such data to the Governor as part of the budget process.
(2) Powers related to the administration, execution, and control of the budget:
(A) To prepare and recommend for the Governor’s approval, the budgetary items or Executive Budgets, pursuant to § 104(e)(1) of this title.
(B) To approve the creation or elimination of regular or fixed-term positions and offices during the fiscal year covered by the budget.
(C) To eliminate all vacant positions, or those that become vacant as a result of reorganizations, elimination of duties, reductions in the volume of work, consolidation of programs or functions, or when deemed necessary for fiscal or budgetary control reasons.
(D) To approve authorizations for public officials to travel abroad. Should the needs of the services so require it, the Director may delegate this power to the Secretaries and the Heads of Agencies.
(E) To execute the control of the appropriations for investments and capital improvements, and require progress reports as frequently as needed to follow up on the execution and development of the programs, and to authorize the reprogramming of resources when the different government agencies request it, and the necessity and convenience thereof is determined. Provided, That it shall also follow up on the capital improvement programs of public corporations, and those financed by United States Government grants. In the performance of this function, it shall establish and maintain the needed coordination with the Government Development Bank regarding capital improvements and their financing, in connection with public corporations. Provided, That any reprogramming of resources that must be made, and the following up of the capital improvement programs, shall be attuned to the provisions of the Investment Program and the spirit of the statute that authorizes the use of the funds.
(F) To verify the availability of funds to cover the reassignment of personnel, in-grade raises in salary, and any other personnel action which would have an effect on the budget, prior to the final authorization by the Central Personnel Administration Office, or by the Individual Administrators whose operating expenses depend on legislative appropriations.
(G) To review and approve together with the Central Personnel Administration Office, the compensation plans of the agencies that are Individual Administrators under the Personnel Act, for the purpose of evaluating the fiscal effect. Said agencies shall establish the necessary procedures to comply with the purposes of this provision.
(H) To verify the availability of funds for the employment of provisional personnel in those agencies that depend on legislative appropriations for their operating expenses.
(I) To require Government agencies to render periodic reports on the status of the appropriations, which reflect the disbursements, obligations, available balances and projected expenditures.
(J) The administration, execution and control of the Judicial Branch’s budget shall rest on the Chief Justice of the Supreme Court of Puerto Rico, or by delegation, on the Administrative Director of the Courts.
(K) The administration, execution and control of the Legislative Branch’s budget shall rest on the President of the Senate and the Speaker of the House, respectively.
(L) To coordinate and require information through a circular letter to an official in the Executive Branch bodies, who shall be designated to serve as liaison between the dependencies of said Branch and the Office, in budget administration matters. This official shall be the Budget Director, the Finance Director, or the Administration Director—or their equivalent—and who is holding the office or position.
(M) Based on the data collected under clause (1)(G) de of this subsection, the Office shall prepare the projection of energy consumption expenses for each government body whose budget is under the jurisdiction of the Office, and whose payment for such service is covered in whole or in part by the General Fund budget; it shall identify the amount of the projected monthly payment for the following fiscal year; and shall coordinate with the Department of the Treasury so that the total amount of such items for each fiscal year is earmarked exclusively for the payment thereof and the corresponding monthly payment for such service is remitted directly and entirely to the Electric Power Authority at the beginning of each month.
(3) Powers related to the evaluation and analysis of management programs:
(A) To perform those management studies, examinations and evaluations deemed necessary to measure, improve and increase the effectiveness, efficiency and economy in the operation of the regular agencies of the Government of the Commonwealth of Puerto Rico and its Public Corporations, and, in the case of the municipalities, when requested by them. To such effects, it shall, among other things:
(i) Keep under continuous scrutiny the organization of the Executive Branch, to advise the Governor and the Legislature on matters such as the creation or elimination of agencies; fusing of agencies; transfer of functions and programs; creation of mechanisms for coordination, planning and counsel, and other measures deemed necessary to improve the direction, coordination and operation of the Executive Branch.
(ii) Examine and study internally any of the government agencies, public corporations or the municipalities, either totally or partially, regarding the organization, administrative and auxiliary systems and procedures for the planning, central and operational organization, internal and interagency coordination, information systems, auxiliary purchasing and supply services, among others.
(iii) Indicate and make recommendations to the heads of agencies and the Governor, based on the studies, evaluations and examinations it performs.
(iv) Keep the Governor informed as to the findings and indications made as a part of the studies performed, and the corrective steps taken in each case.
(v) Help and counsel the agencies in developing administrative studies, evaluations, and in implementing the corrective measures adopted jointly.
(vi) Participate as advisor or collaborator in structuring and implementing new government programs and agencies, and follow up on their development in order to make indications and recommendations to the Governor and the head of the agency concerned.
(vii) Provide follow-up to the reorganizations implemented by the agencies for the purpose of evaluating the results and achievements obtained through such reorganizations, and present the pertinent indications and recommendations to the head of the agency and to the Governor.
(viii) Promote and help to coordinate efforts to deal with matters or situations that require the participation or intervention of several government agencies.
(B) To require government entities to provide reports, materials, data and any other information regarding the organization; the objectives, functions, activities, legal basis, regulations, resources, strategies, priorities, plans of action and any other managerial or administrative matters deemed relevant to the studies, evaluations or audits performed by the Office. The agencies, departments and other instrumentalities of the Government of the Commonwealth shall be bound to furnish whatever information the Office may require from them to comply with the functions and duties imposed by this chapter.
(C) To make the visits, examinations of documents, observations, investigations, inspections or verifications deemed necessary to perform said management studies, audits or evaluations.
(D) To encourage and promote the exchange of information on administrative matters and affairs.
(E) To see to it that the programmatic evaluating programs performed, in addition to those aspects of particular interest to the Office, take into account the manner in which the objectives, goals, policies and strategies of each program harmonize with those established in the Internal Development Plan and the Four-Year Investment Program.
(4) Powers relative to the Government’s electronic processing and interconnection systems:
(A) Adopt criteria for the purchase and lease of equipment and predesigned programs or software, and approve contracts related to the design of electronic data processing and interconnection systems of the Government prior to their being granted, pursuant to the guidelines issued to that effect by the Governor’s Commission on Information Systems created by this chapter.
(B) Evaluate or advise the bodies of the Executive Branch regarding the advantages of the equipment and the administrative procedures, and their capacity to provide for the present and future needs of the Government of Puerto Rico in matters related to electronic data processing and interconnection systems, as well as to require such information from them.
(C) Evaluate the existing facilities in terms of the convenience of the equipment, procedures, personnel and present and future needs of the Government of Puerto Rico in this area, and to require corrective action.
(5) General powers inherent to the powers and duties of the Office:
(A) Establish and maintain an information system which propitiates, advances and expedites the processes of Executive Branch agencies in their relationship and interaction with other agencies and with the Office, except for the system used by the Department of the Treasury in the exclusive performance of its operations, and the system used by all those other government agencies and bodies which the law provides and guarantees that the confidentiality of the information obtained be maintained in the exercise of their functions imposed by the body of laws or by the particular nature of the functions delegated upon them.
(B) Coordinate and require information by means of circular letters or memorandums to an official in the Executive Branch’s entities, who shall be designated by the head of each dependency, Provided, That said information may imply the presentation of a sworn statement before a notary and reports from certified public accountants indicating compliance, or some other type of certification thereof, should meritorious special or extraordinary circumstances or needs arise. This official, who shall be the Budget Director, the Finance Director or the Director of Administration, or his/her equivalent, and who must be holding said office at the time, shall act as liaison between the dependencies of said Branch and the Office in matters regarding the administration of the budget.
(C) Require the participation of the agencies in multiagency projects geared to achieve economy, efficiency and effectiveness.
(D) Adopt general criteria whose effect shall be to achieve economy, efficiency and effectiveness in government. It may establish certain measures, among others, directed towards the conservation of resources in the Executive Branch entities and impose maximum limits on the fees to be paid on account of specific transactions or services in those cases that the Management and Budget Director deems necessary to achieve the best use of resources and a sound fiscal administration.
History —June 18, 1980, No. 147, p. 645, § 3; Aug. 18, 1994, No. 89, § 2; Aug. 3, 1995, No. 110, § 5; Apr. 16, 2010, No. 42, § 15; Dec. 11, 2011, No. 239, § 1; Dec. 8, 2015, No. 208, § 301a.