JAVNA INTERNA FINANSIJSKA KONTROLA U INSTITUCIJAMA BOSNE I HERCEGOVINE

Abstract

Countries in transition and future members of the European Union that have signed the Stabilisation and Association Agreement are required to implement reform measures relating to internal control of economic subjects and budget users. Development of audit methods and improvement of audit control are being characterised as priorities in accordance with International audit standards. This reform aspect represents also an obligation of Bosnia and Herzegovina defined by the Stabilisation and Association Agreement. In order to provide support to candidate countries in their association process with their reform system of public internal control, the European Commission has developed a concept of public internal financial control. The purpose of this reform is to establish a unified system set up by Entity governments and the Council of Ministers of Bosnia and Herzegovina for the purpose of control, audit and reporting on utilisation of budget funds and funds received from the European Union. The aim of this reform is to secure harmonisation of laws, transparent, economic, efficient and effective utilisation of public funds and their control. Recent experiences in Bosnia and Herzegovina with the view of problems of public spending have shown the need for improvement of existing system of internal controls. Based on the concepts of public internal financial control, it is evident how necessary it is to establish a harmonising function with the purpose of harmonising financial management and control and internal audit through experiences and recommendations of the European Commission and with the due regard to particularities related to constitutional and legal competencies of Bosnia and Herzegovina.

Keywords

• public internal financial control
• financial management and control
• internal audit
• central harmonisation unit
• management responsibility