Organization of financial capacities training - Croatian experience - PowerPoint PPT Presentation

Organization of financial capacities training - Croatian experience Mirna Jurčić Central Harmonization Unit Ministry of Finance of the Republic of Croatia the Hague, 6 & 7 November 2018

Topics 1. Introduction – State Treasury (Central Harmonization Unit) 2. Training in the area of financial management and internal control system - regulatory framework 3. Training in the area of financial management and internal control system - basic modules - additional workshops 4. Catalogue of professional training 5. State School for Public Administration 6. Training for certified internal auditors in the public sector - regulatory framework 7. Training for certified internal auditors in the public sector - basic training - continuous training 8. Programme Council for professional training of internal auditors in the public sector

1. Introduction – Central Harmonization Unit • the CHU was established in 2004, • 14 years of experience in the area of PIC development, • since 2017 the CHU is organizationally under the State Treasury of the Ministry of Finance, • the CHU consists of 3 Services and 16 employees, • implemented 6 EU funded projects (CARDS, IPA, Tranisiton Facillity..) related to development of ICS.

1. Introduction – Central Harmonization Unit • In accordance with our Act on Public Internal Control System, Article 41, The Ministry of Finance is competent for coordination of the development of internal control system in the public sector. The organizational unit within the Ministry of Finance is responsible for implementation of coordination and is competent for harmonization of activities related to the development of internal control system. Among other, this coordination includes organizing trainings for managers and other persons involved in coordination of development of the internal control system and for internal auditors.

2.Training in the area of financial management and internal control system - regulatory framework • Act on Public Internal Control System (Official Gazette 78/15), • Rulebook on internal control system in the public sector (Official Gazette 58/16), • Professional training programme for financial management and control (2013), • Manual on Internal Control System for public administration bodies (2017), • Manual on Internal Control System for state-owned and local/regional government-owned companies (2017).

2.Training in the area of financial management and internal control system - regulatory framework - Act on Public Internal Control System Article 19 - Professional training of persons responsible for internal control system: Managers and persons involved in coordination of the development of the internal control system shall be obliged to undergo professional training in the area of implementation of internal control system, according to the Programme issued by the Minister of Finance.

3.Training in the area of financial management and internal control system – basic modules - Professional training programme: 2 Basic modules: STATE LEVEL 1. Internal control system - targeted state of play 2. Internal control system - practical implementation LOCAL LEVEL + • additional workshops or workshops per request

3.Training in the area of financial management and internal control system – basic modules BASIC MODULE 1: Internal control system – targeted state of play 1. Introduction to internal control system and link with financial management, 2. Framework for development of internal control system, 3. Analysis of state of play of internal control system based on the statement of fiscal responsibility, performed internal and external audits and other sources of information,

3.Training in the area of financial management and internal control system – basic modules 4. Analysis of development of financial management in institutions trough 8 steps: 1) Adequacy of the organizational structure in a manner that supports the realization of objectives from the strategic plans and programs defined by the budget; 2) How to link strategic documents and operational plans; 3) How to identify risks and their correlation with objectives contained in the planning documents; 4) How to produce a financial plan / budget with an emphasis on the involvement of a manager, identifying needs and deciding on priorities; 5) Realization of the budget and responsibility of the manager in controlling expenses and revenues, creating liabilities etc.; 6) Internal reporting system on achievement of objectives and spent resources; 7) Relation and manner of cooperation with budget users and state owned companies and other legal entities within competence; 8) Contribution of internal audit to development of the internal control system.

3.Training in the area of financial management and internal control system – basic modules BASIC MODULE 2: Internal control system – practical implementation 1. Setting up framework for development of internal controls in practice, 2. Strategic planning and implementation of strategy, 3. Linking strategic plan and budget, 4. Producing procurement and work plans, 5. Managerial accountability on all levels, 6. Risk management. Target group for basic module:  heads of organizational units responsible for finance,  heads of other internal organizational units,  persons responsible for coordination of development of internal control system,  internal auditors.

3.Training in the area of financial management and internal control system – additional workshops Additional workshops examples: • Managerial and cost accounting for state level, • Local treasury in the function of financial management and control, • Risk management at budget users, • Fiscal responsibility and internal control system, • Conducting on-the-spot checks, • Managerial accountability - internal control system for managers. Workshops by request: • Linking strategic plan with financial plan and organizational structure, • Managerial accountability - internal control system for managers, • Risk management.

3.Training in the area of financial management and internal control system ICS related education coordinated by the CHU: Year 2013 2014 2015 2016 2017 Number of participants 258 397 225 259 285 Participation in training is free of charge for the participants!

3.Training in the area of financial management and internal control system • Trainers for each module and workshop are selected by CHU, which have notable knowledge and experience in the area of ICS and who are licensed trainers for the public sector. Trainers may be from:  state administration,  local government,  other persons possessing specific knowledge of the area. • Regulation on the form, manner and conditions of training of civil servants (Official Gazette 10/07) and Decision of the Government on the compensation for working on trainings for civil servants (2007) proscribe rights, obligations and compensation of trainers. • The Ministry of Finance is obliged to annually plan and ensure funds in the State Budget for organization and implementation of training programme.

4. Catalogue of professional training • The CHU annually produces and publishes on the official website of the ministry - the Catalogue of professional training. • The Catalogue consists of two parts: 1) Training for heads and other persons responsible for development of internal control system, 2) Training for certified internal auditors in the public sector. • Applications for trainings are accepted by notice and instruction from the CHU or the State School for Public Administration (online registration etc … ).

4. Catalogue of professional training • The Catalogue of professional training provides the following information:  dates of trainings,  duration and time,  detailed syllabus of each training (topics covered),  scope and purpose of each training,  target groups,  names of trainers,  place of training. Catalogue of training 2018

4. Catalogue of professional training - Selection of additional workshops • The Ministry of Finance analyses weakness in the system of financial management and internal controls by: o analyzing the Statement of fiscal responsibility, o analyzing internal audit opinion, o analyzing the State Audit Reports, o performing meetings with budget users in period of budget preparation. • Based on these analysis and areas identified as weaknesses we can have an overview of possible and necessary workshops. Also, annually a questionnaire is sent to all Units for finance to identify their need for training.

4. Catalogue of professional training - Selection of additional workshops • The CHU sends by a e-mail an online LimeSurvey Questionnaire to target groups at the end of a year:  proposed topic of workshops - by the CHU (grading system),  users can propose topic or area of workshop - need of users,  comment and evaluate previously held workshops,  provide suggestions and recommendations for improvement. • Workshops per request are performed when a institutions sends a request for performing a certain workshop in the area of internal control system for their employees. In this case the institution which orders a workshop cover all costs from its budget.