The improvement of the financial management and control in the Ministry of Defence of the Republic of Serbia

Abstract

The system of the financial management and control (hereinafter referred to as: FMC) in the public sector and the Ministry of Defence of the RS (hereinafter referred to as: MoD) should focus on the principles of economy, efficiency, effectiveness and publicity, with the legal use of public funds, aimed at supporting the management in business improvement. Hence, it is necessary to continuously improve the FMC, not to allow problems to arise, but to detect potential risks through controls and take preventive actions, in order to improve business. The objective of the paper is to emphasize the importance of the financial management and control in the public sector, and also in the Ministry of Defence as one of its ministries. Methodologically, analyses and syntheses, comparisons, inductions and deductions of business and FMC for the last five years in the public sector of the RS are included. On the basis of this research and the considered functioning of the FMC, good and bad experiences in normative regulation and in practice, problems have been identified with proposals for its improvement in the public sector and in the MoD of the RS. The improvement proposal has been made by analysing the reports of the Ministry of Finance and the State Audit Institution (hereinafter referred to as: SAI), by researching the operations and functioning of the FMC in the MoD.

Keywords

• financial management
• control
• risks
• preventive action
• improvement
• public sector of rs