STATE TREASORY DEVELOPMENT STRATEGY

Ministry of Finance

Republic of Croatia

Ministarstvo financija

MINISTRY OF FINANCE

Uprava za makroekonomske analize, gospodarstvo, financijski sustav, EU i

međunarodne financijske odnose

Uprava za financijsko upravljanje, unutarnju reviziju i nadzor

Glavno tajništvo

Državna riznica

Carinska uprava Porezna uprava

General Secretariat

State Treasury

Tax Administration

Departments for Macroeconomics Analysis and Planning, Economy,

Financial System, European Integration and International

Financial Relations

Department for Financial Management, Internal Audit and

Supervision

Customs Administration

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STATE TREASURY

Sektor za izvršavanje državnog proračuna

Sektor za podršku Državnoj riznici

Sektor za poslove Nacionalnog fonda

Sektor za pripremu proračuna države i financiranje jedinica

lokalne i područne (regionalne) samouprave

Sektor za upravljanje javnim dugom

Department for State Budget Preparation and Financing of Local Self-governments and

Regional Units

Department for State Budget Execution

Public Debt Management Department

State Treasury Support Department

Department for National Fund Administration

Ministarstvo financija

Strategy for the Development and Modernization of the State Treasury Processes within State Treasury System, 2007 −

2011 for more efficient utilization of public resources and elimination of

production of unnecessary expenses from the state budget funds, a continuous improvements of the State Treasury functions are being made

therefore, in 2007, the Government of the Republic of Croatia has adopted Strategy for the Development and Modernization of the State Treasury Processes within State Treasury System, 2007-2011.

the goal was to improve and enhance public finances management system

the improvements were conducted at several levels:

1. at state level

2. at interdepartmental level (Ministerial level)

3. at programmatic/managerial level

Ministarstvo financija

Strategy for the Development and Modernization of the State Treasury Processes within State Treasury

System, 2007 − 2011 1. at state level

the goal was to ensure overall fiscal discipline, which is foundation of the macroeconomic stability

Fiscal Responsibility Law was passed, and entered into force on January 1, 2011

introduction of

Fiscal rules Rules for straightening of fiscal responsibilities

introduction of multi-year budgetary framework (t+2), in order to produce a longer view on budget, and better fiscal risks control

Ministarstvo financija

Strategy for the Development and Modernization of the State Treasury Processes within State Treasury

System, 2007 − 2011 2. at interdepartmental level (Ministerial level)

the goal was to secure efficient interdepartmental funds allocation aligned with strategic priorities of the State

budget planning is using „top-bottom approach“ obligation on production of strategic plans and three-year Strategy of

Government Programs was introduced in 2009 performance indicators were introduced as a basis for establishment of

monitoring and reporting system budgetary classifications were improved: organizational, programmatic,

and sources of financing reclassification of income

Ministarstvo financija

Strategy for the Development and Modernization of the State Treasury Processes within State Treasury

System, 2007 − 2011

3. at programmatic/managerial level

the goal was to harmonize budgetary allocations and implementation efficiency

a greater flexibility in budget execution was introduced (budget is adopted at a lower level of detail) in order to stimulate orientation towards qualitative providing of public goods and services

the possibility to carry forward projects from one to another budget year was provided

the possibility to transfer generated, but unspent special purpose revenues from one to another budget year was enabled

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such reform steps in public finances management have requested amendments in the legal framework

thus, in mid 2008, a new Budget Law was adopted Rulebook on Budgetary Classifications and new Chart of Accounts were

enacted financial reporting was amended

Amendments in the Legal Framework

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IT System Improvements

Before mentioned reforms towards improvement and modernization of budgetary processes were not possible without the support of IT system

Strategy for the Development and Modernization of the State Treasury Processes within State Treasury System, 2007 − 2011, envisages State Treasury IT system integration with IT financial management systems of regional State Treasury Offices

anticipation and control of future spending – liquidity management instrument, and maintenance, i.e., reduction of public spending levels

introduction of system control and transparency in creation of budgetary obligations via IT system become imperative

direct insight into budget users’ business operations, without interfering in its business independence

Ministarstvo financija

I

Projekti Ministarstva financija i buduće stanje sustavaProračunski korisnici

Proračunski korisnik s usklađenim ISJF #1

ISJF #1

Proračunski korisnik s usklađenim ISJF #2

ISJF #2

Proračunski korisnik s usklađenim ISJF #n

ISJF #n

Državna riznica

Sustav za razmjenu podataka

Gateway Ministarstva(dostupan na Internetu

putem sigurnih protokola)Elektroničkidokumenti

Matični podaci

Rezervacija

Elektronički račun

Prijedlog financijskog plana

Projekt referentnog modela

Sustav za Proračunske klasifikacije

Proračunske klasifikacije

Sustav za upravljanjematičnim podacima

(šifre dobavljača i sl.)

ISJF(SAP-R3)

SAP SEM-BWPoslovno skladište

Postojeća infrastruktura

Projekt Proračunskih klasifikacija

Ministry of Finance Projects and Future System StatusBudget Users State Treasury

Project Reference Model

Budgetary Classification Project

Budget User with aligned ISJF#1

Budget User with aligned ISJF#2

Budget User with aligned ISJF#n

Draft Financial Plan

Reservation

E-Bill

Ministry Gateway(available online

(Internet) via secure protocol)

Data Exchange System

Master Data

Budgetary Classificati

ons

Budgetary Classifications

System

E-Documents

Master Data Management

System (Suppliers codes, etc.)

Existing Infrastructure

SAP SEM-BWWarehouse

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Public Finances Management Strategy 2012 - 2016

Ministry of Finance began to develop Public Finances Management Strategy 2012-2016, with which it continues to work on improvement of State Treasury system processes, aimed at:

Budget preparation

stipulation of evaluation methodology and public investments planning

improvement of strategic plans’ quality performance indicators review continued work on risk identification

improvement of link between strategic plans, operative programs and budget

optimization of budget funds usage, with emphasize on usage of Structural and Cohesion funds instead of special-purpose revenues

Ministarstvo financija

Public Finances Management Strategy 2012 - 2016

Budget execution

setting up of a single foreign currency account in the Croatian National Bank

development of the system for monitoring of execution of received funding from Cohesion and Structural funds

improvement of managerial accountability

Accounting and Reporting

extending information coverage in annual State Budget Execution Report

increased availability and intelligibility of the key budgetary documents content for the citizens (production of guidebooks/brochures)

definition of state property valuation methodology and related record keeping

Ministarstvo financija

Public Finances Management Strategy 2012 – 2016

Accounting and Reporting (Cont.)

improvement of consolidation process at the level of central and general government

introduction of program evaluation

Integrated IT system for public finance management

continued integrations of the State Treasury IT system with IT financial management systems of regional State Treasury Offices

setting up of publicly accessible search data base on payments made

Ministarstvo financija

THANK YOU FOR YOUR ATTENTION