Financial Control

 Welcome to the world of PIFC

“The concept of Public Internal Financial Control (PIFC) has been developed by the European Commission in order to provide a structured and operational model to assist national government in re-engineering their internal control environment and in particular to upgrade their public sector control systems in line with international standards and EU best practice.

The PIFC model has been widely welcomed and is used extensively by many countries, including some outside the EU. It has a track record of success and I strongly recommend embarking on the exiting journey of getting acquainted with the state –of-the-art internal control environment.”

Luis ROMERO REQUENA
Director General DG Budget
 

When the process of strengthening of financial control has been started in Republic of Macedonia?
 

The process of strengthening of the Public Internal Financial Control (PIFC) system has been started in 2000 and it is conducting throw development and applying of the principles of decentralized responsibility of the management and establishing functionally independent internal audit. The aim of this process is establishing system which will guarantee reasonable spending of the public funds.
 

Legal framework of the PIFC
 

Public Internal Financial Control system in the Republic of Macedonia has been regulated with:
        - Law on Public Internal Financial Control (“Official Gazette of Republic of Macedonia”, no. 09/09),
        - Bylaws (see part legal framework)
 

What is the Public Internal Financial Control?
 

Public Internal Financial Control is term used by the European Commission in the Chapter 32 Financial Control. Public Internal Financial Control (PIFC) represents fully consolidated management, monitoring, control and audit system for the national public funds and EU funds established by the Government. The Public Internal Financial Control system is composed of the following:
        (1) Financial Management and Control system;
        (2) Internal Audit; and
        (3) Harmonization of internal control and internal audit.
 

What are the competences of the Public Internal Financial Control Department in the Ministry of Finance?
 

The Public Internal Financial Control Department within the Ministry of Finance Central Harmonization Unit within the Ministry of Finance is competent to:

  • preparation of laws and by-laws for the area of the financial management and control and the internal audit;
  • preparation of methodology and working standards for the financial management and control and the internal audit;
  • organizing trainings for the persons responsible and involved in the financial management and control and the internal audit;
  • coordination of the establishment and the development of the public internal financial control system;
  • maintaining and updating the evidence of internal audit units, evidence of charters for internal audit, evidence of certified internal auditors that have certificates for authorized internal auditor and evidence of persons involved in the financial management and control;
  • cooperation with institutions responsible for public internal control affairs in the country and abroad and exchanges of information for the development of the public internal financial control;
  • supervision of the quality of the financial management and control system;
  • supervision of the quality of the operations of the Internal Audit Units; and
  • preparation of an Annual report for the functioning of the public internal financial control system based on the Annual financial report that is submitted to the Government by the end of June in the current year for the previous year;

 

 

Projects for strengthening of the Public Internal Financial Control system

 

 

“Project for Reforming of Public Administration“

 Financed by PHARE program, 2000,

- Internal Audit Manual prepared, published March 2000

 

 

 

 

 

Project “ Developing Policies in the Internal Audit Field in the Republic of Macedonia and trainings", 2004

Financed by Holland grant and managed by the World Bank

- Internal Audit Manual prepared,

- Training Materials for Internal Audit,

- law on Internal Audit in the Public Sector prepared (September 2004),

 

 

 

Project “Techical Asisstance to the Ministry of Finance for Development of the Internal Audit" (Fevruary 2005 - Fevruary 2006)

Financed by the Europeam Commission, managed by European Agency for Reconstructioin ,

- Internal Audit Manual - Guidelines for Methods and Techniques of the Internal Audit prepared 

- Practical Advisories for Internal Audit

Brochures:

- Development of the Internal Audit and Public Internal Financial Control,

- Development of the Internal Audit,

- 4 Key Questions about Internal Audit in the Local Self-government Units

  

Project “System Audit Training for the Internal Auditors in to thePublic Sector in the Republic of Macedonia“

Financed by holland grant , managed by the World Bank , 2005

- 10 pilot system audits performed

 

 

 

 

 

 

 

 

Twining Project “ Strenghtening of Public Internal Financial Control System"

Financed by the EU (April 2007 - December 2008 )

- Presentation fot advantages of an Twining Project  (Hague, 4 June 2008)

- Presentation for Delopment of the Public Internal Financial Control in the Republic of Macedonia   (Brussels, 17 March 2009)

 

 


 

 

 

Twining Project “Supporting the Process of Fiscal Decentralisation through Strengthening the Capacities for Sound Financial Management and Internal Financial Control on Local and Central LevelType the text here“

  - Newsletter Twining Macedonia Fevruary 2011