Analysis of the system of internal financial control of the public sector of countries of the Western Balkans

Abstract

In order to manage public funds more efficiently and reliably, with the active participation of managers at all levels, a system of internal financial control will be established in the public sector. The paper will present the state of the system in the selected countries, Serbia, Croatia, Bosnia and Herzegovina, the Republic of Srpska and Montenegro in 2015. The basis for the analysis is publicly disclosed consolidated financial statements of the Central Harmonization Unit of the Ministry of Finance of the observed countries. The results of self-assessment questionnaire showed that the lowest score was given to risk management, while information and communication were the best rated elements of the system in most countries in 2015. Also, it was concluded that the observed countries had much smaller number of filled in jobs of internal auditor in relation to number of systematized ones. The final part of the paper points to the status of current system and proposes future activities of budget users, and control of the financial effects of the business towards providing quality services of general public interest.

Keywords

• internal financial control
• public sector
• the countries of the western balkans