FAQ for Financial Management and Control

Financial management and control is a system of policies, procedures and activities established by the head of the subject to provide reasonable assurance that the objectives of the entity are achieved.

Sound financial management and control is transparent, regular, economical, efficient and effective use of available resources

Financial management and control process covers financial planning, execution, monitoring and reporting for collection of revenues defined in the budget, management and control of execution of the expenditure approved by the budget and protection of assets and liabilities whose value is recorded in the balance sheet.

Financial management and control should be implemented in all organizational units and at all levels of the subject and it covers all assets of the entity including funds from European Union and other sources.

Objective of financial management and control is to improve financial management to achieve the following goals:

• Performing correct, ethical, economical, effective and efficient manner
• Compliance of operations with laws, other regulations, established policies, plans and procedures
• Protection of property and other resources from losses caused by mismanagement, unjustified spending and utilization, as well as irregularities and abuses
• Strengthening accountability for the successful accomplishment of tasks
• Proper recording of financial transactions and
• Timely financial reporting and monitoring the results of operations .

The head of the entity is responsible and accountable for:

• Preparation, execution and reporting on the budget of the entity that he manages.
• Continuous assessment for the system of financial management and control
• Setting and achieving goals of the entity, drafting and implementation of strategic and other plans also including programs to achieve general and specific objectives of the entity
• Establishment of organizational structure and work procedures that will ensure operation, monitoring and development of sustainable financial management and control
• Risk management and implementation of appropriate and effective internal controls.

Internal audit checks how is established and how is functioning the system of financial management and control and makes recommendations for its improvement. Recommendations of internal audit are incorporated in the system of financial management and control so that system is constantly improving, That means they have the same goal – providing legal and proper or effective, economical and efficient use of all public funds.