What is the project about? Why PIFC Twinning project is important for Serbia?
The
partnership between two state administrations of France and Serbia will make
possible the development of internal financial control in the public sector and
all public institutions of the Republic of Serbia. That is of vital importance
to the reform of public administrations and the reform of public finance in
line with the priorities of the national PIFC Strategy 2017-2020, the requests
of the European Union – Chapter 32 and international standards – INTOSAI, COSO
2013, IPPF IIA.
The
very term and concept of the PIFC system has been developed by the European
Commission with the goal of providing aid to candidate countries and potential
candidates for the membership in the EU in understanding and applying
well-developed and efficient instruments for control and managing of public
finances.
PIFC,
Public Internal Financial Control, presents a comprehensive and innovative
approach to management in the public sector. This approach implies:
- instruments for efficient and effective management of public resources
- shaping the culture of management
- transformation of society - ``value for money``
The PIFC twinning project will make possible the advancement and strengthening of existing institutional capacities in the field of managerial accountability – the system of financial management and control and the functioning of an independent internal auditing – the IR system.
Managerial accountability
The central unit for harmonization is in charge of the development of the methodology of internal control and auditing. The PIFC twinning project will further strengthen the role of this body by the exchange of expert knowledge, experiences and examples of good practice in the public sector.Central activity of the project is the implementation of managerial accountability. The managerial accountability is the corner stone of the Reform of public finance and implies the following:
- The system of delegating authority
- output
- the transparent roles and accountability of organizational units in charge of financial activities.
Apart from the Central unit for Harmonization of the
Ministry of Finance, which is the main user of the project, a wide specter of
users, among which are the ministries, governmental institutions, the units of
local self-governance and other users of public funds will be included within
the PIFC twinning project.