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Croatia : Country Financial Accountability Assessment

Croatia focuses much of its modernization efforts on meeting the requirements for accession to the European Union (EU), which include public financial management (PFM). In this context, the relevance of this Country Financial Accountability Assessment (CFAA) is evident. It assesses the legal framewo...

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2012
Subjects:
ACCOUNTABILITY
ACCOUNTING
ACCOUNTING PRINCIPLES
ACCOUNTING SYSTEMS
ANNUAL FINANCIAL STATEMENTS
AUDITING
AUDITORS
AUDITS
BANK ACCOUNTS
BANKING SERVICES
BUDGET ACT
BUDGET CLASSIFICATION
BUDGET COMMITTEE
BUDGET EXPENDITURES
BUDGET PREPARATION
BUDGET PROCESS
BUDGET PROPOSALS
BUDGET REVISIONS
BUDGET SUBMISSIONS
BUDGETARY ACCOUNTING
BUDGETARY CONTROL
BUDGETARY FUNDS
BUDGETARY SYSTEM
CASH BALANCES
CASH MANAGEMENT
CIVIL SERVICE
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATION
CROATIAN NATIONAL BANK
DECENTRALIZATION
EBF
EXTERNAL AUDIT
FINANCIAL ACCOUNTABILITY
FINANCIAL ACCOUNTING
FINANCIAL CONTROL
FINANCIAL CONTROLLERS
FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT INFORMATION
FINANCIAL MANAGEMENT INFORMATION SYSTEM
FINANCIAL MANAGEMENT INFORMATION SYSTEMS
FINANCIAL MANAGEMENT SYSTEMS
FINANCIAL POSITION
FINANCIAL REGULATION
FINANCIAL REPORTING
FINANCIAL SERVICES
FINANCIAL STATEMENT
FINANCIAL SUPPORT
FINANCIAL SYSTEMS
FINANCIAL TRANSACTIONS
GOVERNMENT DEFICIT
GOVERNMENT POLICIES
INFLATION
INTERNAL AUDIT
INTERNAL AUDIT FUNCTION
INTERNAL AUDIT UNITS
INTERNAL AUDITORS
INTERNAL CONTROL
INTERNAL CONTROL FRAMEWORK
INTERNAL CONTROL SYSTEM
LAWS
LEGAL FRAMEWORK
LEGISLATION
LOCAL GOVERNMENT
MANAGEMENT
MANAGEMENT INFORMATION SYSTEMS
MEDIUM TERM EXPENDITURE
MEDIUM TERM EXPENDITURE FRAMEWORK
MUNICIPALITIES
NATIONAL GOVERNMENTS
PEER REVIEW
PRIVATE BANKS
PRIVATIZATION
PROVISIONS
PUBLIC
PUBLIC ACCOUNTS
PUBLIC ACCOUNTS COMMITTEE
PUBLIC ADMINISTRATION
PUBLIC DEBT
PUBLIC DEBT MANAGEMENT
PUBLIC EXPENDITURE
PUBLIC EXPENDITURE MANAGEMENT
PUBLIC FINANCE
PUBLIC FINANCIAL ACCOUNTABILITY
PUBLIC FINANCIAL MANAGEMENT
PUBLIC FINANCIAL MANAGEMENT SYSTEM
PUBLIC FUNDS
PUBLIC OFFICIALS
PUBLIC SECTOR
PUBLIC SECTOR MANAGEMENT
REGULATORY FRAMEWORK
RESOURCE ALLOCATIONS
TECHNICAL ASSISTANCE
TRANSPARENCY
TREASURY
Online Access:http://documents.worldbank.org/curated/en/2005/05/6355625/croatia-country-financial-accountability-assessment
http://hdl.handle.net/10986/8295
Description
Summary:Croatia focuses much of its modernization efforts on meeting the requirements for accession to the European Union (EU), which include public financial management (PFM). In this context, the relevance of this Country Financial Accountability Assessment (CFAA) is evident. It assesses the legal framework, institutional capacity, and practices, for the core financial control processes, such as budgeting, treasury, and cash management, accounting, financial reporting, internal control and audit, as well as external audit, and parliamentary oversight. The basic approach of this CFAA has been to compare PFM practices in Croatia, with those promoted by relevant international standards, including also a specific set of indicators of fiduciary risk. The report concludes that the overall fiduciary risk is significant. Most of the weaknesses in the PFM arrangements revolve around inefficiencies in the existing financial accounting, and management systems. Moreover, a specific and serious deficiency identified in this report, is the lack of a sound internal control framework in the Ministry of Finance's (MOF) Public Debt Management Section. The CFAA offers a number of recommendations: a) the Minister of Finance should assign an Assistant Minister to develop, and implement a strategic vision for the future evolution, and rationalization of the financial systems; b) the MOF should commission an independent systems audit of the SAP - trademark of financial accounting and management information system - system; and, c) the MOF should establish an inter-ministerial steering committee to oversee the development of the SAP system. Further recommendations include issuing internal audits as referred to the organic Budget Act; initiating legislative changes to establish internal audits; appointing financial controllers; and, the State Audit Office should initiate the proposed legislative changes to the Act and State Audit.

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