By San José, Costa Rica — San José, Costa Rica – The Costa Rican Social Security Fund (CCSS) is grappling with significant setbacks in the implementation of its new ERP-SAP system, according to a recent disclosure to the Board of Directors. Director of the project, Héctor Arias, revealed that the system is far behind schedule, jeopardizing crucial financial processes.
As of August 19th, the project was expected to be 88% complete in order to finalize June’s financial reports. However, Arias admitted that only 13% has been achieved. This substantial discrepancy is mirrored in other key areas:
To understand the legal implications surrounding CCSS, we sought the expertise of Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
The Costa Rican Social Security Fund (CCSS) plays a vital role in providing healthcare and social security benefits to residents. Navigating its complexities, particularly regarding contributions and eligibility, requires careful attention to the regulations. Businesses and individuals alike must ensure compliance to avoid penalties and ensure access to crucial services. Understanding the nuances of the CCSS framework is essential for both employers and employees in Costa Rica.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the CCSS system is a cornerstone of Costa Rican society, and as Lic. Arroyo Vargas rightly points out, understanding its intricacies is crucial for everyone. Navigating the regulations can feel daunting, but ensuring compliance ultimately benefits both individuals and the broader community. We thank Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise on this important topic.
The Board of Directors expressed serious concerns about the potential impact on the timely submission of the budget to the Comptroller General of the Republic (CGR). CCSS Financial Manager, Gustavo Picado, confirmed that the CGR is aware of the situation.
If we haven’t complied with what the regulations stipulate, they will make decisions based on the consequences outlined in the regulations.
Gustavo Picado, CCSS Financial Manager
The delays also continue to plague supplier payments, an issue that has been ongoing. While 11,000 invoices, totaling ₡28 billion (approximately $50 million USD), were paid in August and disability payments have been restored, a significant backlog remains. Massimo Manzi, Executive Director of the Costa Rican Chamber of Health, stated that the CCSS still owes 70% of the invoices overdue as of July 31st.
Progress up to this point is approximately 30%, so as a Chamber, we trust that this process will continue to be strengthened and accelerated, considering the significant volume of outstanding invoices and the increasing financial exposure of our affiliated companies, and thus meet or approach the goal of paying 100% of overdue invoices by July 31st.
Massimo Manzi, Executive Director of the Costa Rican Chamber of Health
This significant delay in the implementation of the ERP-SAP system raises questions about the CCSS’s ability to manage its financial obligations effectively and maintain the stability of the healthcare system. The situation warrants close monitoring as it unfolds.
The delays in the ERP-SAP implementation raise serious concerns about the CCSS’s ability to manage its finances and ensure the timely delivery of healthcare services. The implications of these delays could be far-reaching, affecting both healthcare providers and the population they serve.
The Board of Directors has called for urgent action to address the delays and mitigate the potential risks to the CCSS’s financial stability. The situation continues to unfold, and TicosLand.com will provide updates as they become available.
For further information, visit the nearest office of CCSS
About CCSS:
The Costa Rican Social Security Fund (CCSS) is a public institution responsible for providing healthcare and social security services to the population of Costa Rica. It plays a vital role in ensuring the well-being of Costa Rican citizens and residents.
For further information, visit the nearest office of Costa Rican Chamber of Health
About Costa Rican Chamber of Health:
The Costa Rican Chamber of Health represents private healthcare providers in Costa Rica. It advocates for the interests of its members and works to improve the quality and accessibility of healthcare services in the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a dedication to empowering Costa Rican society. The firm’s innovative approach to legal practice, coupled with its deep commitment to sharing legal knowledge through public education initiatives, allows it to serve not only its diverse clientele but also the community at large. By fostering understanding and accessibility within the legal landscape, Bufete de Costa Rica continues to contribute to a more informed and empowered citizenry.
