Single Project

Improvement of Budgeting System, multi-annual budget framework and Public Internal Financial Control System

Improvement of Budgeting System, multi-annual budget framework and Public Internal Financial Control System

project details

  • author: EuropeAid/138389/IH/SER/ME – Montenegro
  • Contracting authority: The Ministry of Finance, the Directorate for Finance and Contracting of the EU Assistance Funds (CFCU)
  • Consortium: Ecorys Nederland B.V. (lead), Societe Francaise de Realisation d ' Etudes et de Conseil (Sofreco), Evropska konsalting grupa LLC Belgrade
  • date: July 26, 2019
  • category: Ongoing,
  • client: 2/2019 – 02/2022

Overall objective
The overall objective of the project is to contribute to increased fiscal sustainability and sound management of public finances in line with EU requirements.

Purpose
The purpose of the project is to fully implement a multi-annual budgeting framework and programme-based budgeting as well as to further improve public internal financial control and transparency in public finance management.

Results to be achieved by the Contractor
Component I

  • Medium-term Budgetary Framework, including capital budgeting, is in place;
  • Strategic government policies and, more in general, sectoral strategies better connected with multi-annual budgeting framework;
  • Programme-based budgeting is in place;
  • Institutional capacities for multi-annual budgetary planning, programme budgeting and capital budget strengthened;
  • Transparency and accountability of decision making as regards PFM improved;
  • Transition from cash basis public sector accounting to accrual accounting supported.

Component II

  • Risk Management System within Ministry of Finance and wider public sector improved;
  • Managerial accountability strengthened;
  • Internal audit within Ministry of Finance and wider public sector organizations improved;
  • Quality assurance for internal audit and financial management control established;
  • Internal reporting on FMC in public sector organizations improved.

Component III

  • System of prevention and recovery from potential threats to business continuity fully in place