The overall objective of the project is to support the Croatian Government to build an efficient and sustainable budget management system designed and operating according to European standards, through the modernization of budget processes and increasing capacity for budget management. The purpose of this contract is to design MTBF format and procedures, to set up performance indicators, to improve the budget execution process, financial planning and cash management, and to deliver training in budget management areas.
The results will be achieved through 4 components:
Component 1: Multi-year Budget Framework
• Designing the MTBF format;
• Defining the MTBF preparation procedures and revising the budget preparation procedures taking into account the MTBF procedures;
• Establishing new budgeting procedures by taking into account existing capacities;
• Amending and reviewing the legal framework;
• Preparing the manuals for MTBF and budget preparation.
Component 2: Performance indicators and modifications of Treasury information system
• Improving the current programme classification shifting focus from the types of expenditures and amounts to achieved results;
• Setting up performance indicators and procedures to monitor and report;
• Drafting of operational guidelines monitoring and reporting procedures of performance indicators;
• Modifying the existing Treasury information system in line with proposed improvements done.
Component 3: Streamlined budget execution process
• Extending the TSA coverage (design a solution for foreign currency transactions in the framework of TSA; steps to ensure that all payments are made directly from the TSA taken);
• Improving cash planning (design procedures for following up future payment obligations and preparing cash plans and borrowing plans);
• Defining procedures to centralize the data on commitments;
• Improving accounting and reporting reviewed, while streamlining commitment control;
• Reviewing appropriation management rules to provide line ministries with a modicum of flexibility.
Component 4: Training of relevant staff of the MoF and line ministries in budget management areas carried out
• Preparing and implementing capacity assessment of MoF staff;
• Establishing training programme/curricula and implementation schedules;
• Elaborating training materials;
• Delivering training (for the staff from both the MoF and line ministries);
• Undertaking 2 study tours, minimum one course and minimum one internship in an EU country;
• Implementing public awareness actions.