Some of the largest budget users failed to submit the financial management system report

The Central Harmonization Unit (CHJ) of the Ministry of Finance and Treasury of Bosnia and Herzegovina, in accordance with the Law on Financing Institutions of BiH, prepared the Consolidated Annual Report on the Financial Management and Control System in BiH Institutions for 2015, reports the Patria news agency.

Out of a total of 74 institutions that were obliged to submit their annual report on the financial management and control system for 2015 to the CHJ of the Ministry of Finance and Treasury of BiH, 63 institutions submitted the report.

- The report was not submitted by some of the largest budget users, such as the Ministry of Foreign Affairs of BiH, the Agency for Identification Documents, Registers and Data Exchange of BiH, the Presidency of BiH, the Ministry of Justice of BiH, the Parliamentary Assembly of BiH, as well as the Agency for Prevention of Corruption and Coordination of the Fight against Corruption of BiH, the Mine Action Center BH –BHMAC, and the Institute for Missing Persons of BiH – stated the CHJ.

Through the analysis of the submitted reports, the CHJ of the Ministry of Finance and Treasury of BiH determined that not all BiH institutions have fully established a planned approach to operations and that most institutions have not yet appointed a person responsible for financial management and control.

- The risk management process has been established in less than 50% of the institutions that submitted reports for 2015. Since financial management and control is based on the risk management process, this area is crucial for the development of a quality financial management and control system and its improvement is necessary, it was highlighted in the Consolidated Annual Report on Financial Management and Control, which was presented to the Council of Ministers of BiH – it is further stated.

Upon the proposal of the Central Harmonization Unit of the Ministry of Finance and Treasury of BiH, the Council of Ministers, through its Conclusion, tasked BiH institutions with accelerating the implementation of activities for establishing and developing a quality financial management and control system. Improving financial management and control, especially in key processes of the budget cycle, is necessary for efficient, effective, and economical management of public funds.