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Training on “Planning and implementing the budget – system of internal financial control”

obuka bpOn the basis of Plan for training realization for the period from February to April 2015, the Union of Municipalities in cooperation with the Human Resources Authority Management organized a training on “Planning and implementing the budget – system of internal financial control.”

Three regional training on this issue were organized in Podgorica on 25 March, in Bar on 1 April and in Bijelo Polje on 6 April 2015. The target group were municipal secretaries and serevants of the Secretariats of Finance, as well as employees in other municipal secretariats and municipal budget funds beneficiaries participating in the planning and execution of the budget. The trainings were attended by 43 participants in total.

Lecturers at the training were representatives of the Ministry of Finance Ms.Nina Blecic from the Department for Harmonization of Financial Management and Control and Ms. Snezana Mugosa, from the Directorate for Budget.
The concept of internal financial controls in the public sector, which was developed by the European Commission to help countries preparing to join the European Union to improve their management systems to public funds (national and EU funds) in accordance with international standards and best practices was introduced Ms. Nina Blecic. The aim of the concept is to ensure good management of public funds, the exercise of cost control, to provide value for taxpayers’ money. Participants have thoroughly familiarized with all aspects of the system of internal financial control (PIFC) – Financial management and control (FMC), a functionally independent and decentralized internal audit (IA) and Central Harmonization Unit (CHU). The obligation for the local government units to designate a coordinator for the implementation of FMC was emphasized as well as an overview of the area of risk management.

In the second part of the training Ms. Snezana Mugosa has presented the entire process of preparation and execution of the state budget, which is networked with the process of preparation and adoption of the municipal budget. She spoke about the legislative framework relating to this process, as well as a number of other documents and guidelines necessary for the adoption of the budget. She pointed out the need for respect the fiscal policy criteria in the planning and execution of the budget, then the structure, content and process of budget planning, with particular emphasis on fiscal policy guidelines, basic macroeconomic indicators, spending limits and other issues of the particular importance for the budget preparation process. Commenting on the process of capital budget planning, as well as a large set of issues relating to the budget execution she explained the preparation of final accounts. Special attention was given to the adoption of the municipal budget, sources of financing, problems planning rules of the municipal budget in the budgeting, problems in in planning revenue and expenditure, borrowing, as well as the content of the final account of the municipal budget.