About Project

The goal is to establish an up-to-date and efficient system of management of public finances at all levels of authorities. That implies transparent use and saving of public budget funds in the Republic of Serbia.

What is the project about? Why PIFC Twinning project is important for Serbia?

The partnership between two state administrations of France and Serbia will make possible the development of internal financial control in the public sector and all public institutions of the Republic of Serbia. That is of vital importance to the reform of public administrations and the reform of public finance in line with the priorities of the national PIFC Strategy 2017-2020, the requests of the European Union – Chapter 32 and international standards – INTOSAI, COSO 2013, IPPF IIA.
The very term and concept of the PIFC system has been developed by the European Commission with the goal of providing aid to candidate countries and potential candidates for the membership in the EU in understanding and applying well-developed and efficient instruments for control and managing of public finances.
PIFC, Public Internal Financial Control, presents a comprehensive and innovative approach to management in the public sector. This approach implies:

• instruments for efficient and effective management of public resources
• shaping the culture of management
• transformation of society - ``value for money``

The PIFC twinning project will make possible the advancement and strengthening of existing institutional capacities in the field of managerial accountability – the system of financial management and control and the functioning of an independent internal auditing – the IR system.

Managerial accountability

The central unit for harmonization is in charge of the development of the methodology of internal control and auditing. The PIFC twinning project will further strengthen the role of this body by the exchange of expert knowledge, experiences and examples of good practice in the public sector.
Central activity of the project is the implementation of managerial accountability. The managerial accountability is the corner stone of the Reform of public finance and implies the following:

• The system of delegating authority
• output
• the transparent roles and accountability of organizational units in charge of financial activities.

Apart from the Central unit for Harmonization of the Ministry of Finance, which is the main user of the project, a wide specter of users, among which are the ministries, governmental institutions, the units of local self-governance and other users of public funds will be included within the PIFC twinning project.