15th December 2020, Skopje – New system for managerial accountability in financial management and control of public sector institutions will be introduced with the new Law on Public Internal Financial Control System, Minister of Finance, Fatmir Besimi, pointed out at the public discussions on the new draft Law.
In the coming period, the Ministry of Finance will work together with the institutions on preparation of internal acts for the key financial management and control processes, which provide for strengthening of the internal control.
“Establishment of new system on managerial accountability in financial management and control is a novelty in the Law. Under the system, role of the manager of the parent budget user is strengthened, while as regards the managers of internal organizational units, their accountability before the entity’s manager is strengthened”, Minister of Finance, Fatmir Besimi, said. Purpose of the Law, as Besimi pointed out, is to enhance the internal financial control, by strengthening managers’ responsibility and accountability.
It is important that the Law will be applied by public sector entities, including the publicly-owned enterprises, while the internal financial controls will be carried out only on the basis of internal acts under which each public sector entity will devise the procedures for implementation of the key financial management and control processes.
The draft Law also provides for organizational and functional independence of the internal audit, as well as requirements to be met by both the managers of internal audit units and the internal auditors.
At the same time, to the end of enhancing the financial management and control system and internal audit in the public sector, Public Internal Financial Control Council will be established in the Ministry of Finance, as an advisory body without any management authority. Council members will be appointed and dismissed by the Government of the Republic of North Macedonia upon proposal by the Minister of Finance.
The Law was prepared within the IPA Twinning Light Project “Further Improvement of the Internal Control System” and the IPA Twining Project “Strengthening the Budget Planning, Execution and Internal Control Functions”, with experts from Croatia being engaged in their implementation.