FINANCIAL MANAGEMENT AND CONTROL AND FISCAL RESPONSIBILITY OF BUDGET USERS IN THE FIELD OF PUBLIC PROCUREMENT

The Fiscal Responsibility Act introduced accountability, transparency and stability at all levels of business monitoring. The emphasis is placed on the introduction to control in the budget execution process. Well-established system of financial management and control, which had a long-term effect of good financial management, is also one of the elements of its connectivity with fiscal responsibility. Internal procedures in the field of planning, budget execution, public procurement area, accounting and reporting area represent an efficient coordination of financial management and control in order to ensure fiscal responsibility. Business processes that occur within the institutions / facilities of budget users in the health system, education system and social contributions and benefits are an integral part of the financial management and control. The same is required successful to define and incorporate and describe as internal controls in order to improve the activity of a specific business process. For the needs of undisturbed operation of almost all business processes an important role has public procurement process as a component that provides a more efficient realization of the financial savings. Statement of fiscal responsibility for the budget year or the period in which headmasters or principals of institutions / facilities have performed the duties in the health system, education system and social contributions and benefits system confirm that they were in an institution provided legal, functional and purposeful utilization of budgetary resources as well as effective functioning of the financial management and control system within the budgetary resources apropos planned resources defined by financial plan. In addition to statement is attached the completed questionnaire on fiscal responsibility for the budget year that includes questions in the field of planning financial plan, executing the same, the field of public procurement, and the field of accounting and reporting. Acquiring information required to process topic of this paper was carried out by studying the literature and searching the Internet. Based on the collected data it is necessary to develop a model for the evaluation for introducing fiscal responsibility that should be adjusted to budget users in the Republic of Croatia in the context of further improving the business. The aim of this paper is to emphasize the importance of implementing a system of internal financial controls as well as the contribution and efficiency of fiscal responsibility law, with an emphasis by increasing the efficiency in terms of controlling future consumption of resources, strengthening the monitoring system and controlling in the execution of a financial plan and in the field of public procurement as well as transparency and predictability of fiscal policy.