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

• 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

• f

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

• ther

persons involved in coordination

• f

development of the internal control system and for internal auditors.

• 1. Introduction – Central Harmonization Unit

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
• n

Internal Control System for state-owned and local/regional government-owned companies (2017).

• 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.

2.Training in the area of financial management and internal control system - regulatory framework

• Professional training programme:

+

• additional workshops or workshops per request

2 Basic modules:

• 1. Internal control system
• targeted state of play
• 2. Internal control system
• practical implementation

STATE LEVEL LOCAL LEVEL

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

• wned 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 – basic modules

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 – additional workshops

ICS related education coordinated by the CHU: Participation in training is free of charge for the participants!

Year 2013 2014 2015 2016 2017 Number of participants 258 397 225 259 285

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.

3.Training in the area of financial management and internal control system

• 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

• f 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…).

• 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

• 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:

• analyzing the Statement of fiscal responsibility,
• analyzing internal audit opinion,
• analyzing the State Audit Reports,
• 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.

• 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

• rders a workshop cover all costs from its budget.
• 4. Catalogue of professional training - Selection of

additional workshops

• 5. State School for Public Administration
• All trainings in the area of financial management and internal

controls in accordance with our Catalogue are performed at the State School for Public Administration.

• The School is a public institution and is independent in carrying out

its activities and business (in accordance with the law), and for it’s work answers to the Ministry of Public Administration.

• The State School's function is providing professional training and

improvement to public servants from state level as well as elected

• fficials and public servants from local and regional self-government

bodies, employed in legal entities with public authority and for adult education, with the aim of continuously raising the level and quality

• f their knowledge, skills and ability to form a professional, efficient

and effective public sector.

• With the aim of raising the level of the quality of professional training in

the field of internal control system, as well as with the goal of intensifying training activities, the Ministry of Finance (CHU) and the State School for Public Administration signed the Agreement on cooperation (2014): The MoF is obliged to: 1) deliver all teaching materials 2) suggest trainers, and forms: 3) propose dynamics of

• presentations;

training - Catalogue,

• exercises;

4) in specific situations

• programme for participants;

make selection of participants

• training plan;.
• training programme;
• 5. State School for Public Administration

The School is obliged to: 1) align with the proposed dynamics of training with School resources, 2)

• rganize and implement training programme,

3) report to the Ministry of Finance (CHU) on implementation of each training:

• Report
• n

performed activities (number

• f

participants, attendance lists, analysis of evaluation by participants etc..).

• The participants of trainings apply for the workshop by themselves by

registering on the website of the School and selecting the desired workshop (https://dsju.hr/dsju/home).

• The

school on it’s webpage announces the schedule of workshops according to the Catalogue, and opens applications for the participants.

• 5. State School for Public Administration

• 6. Training for certified internal auditors in the

public sector – regulatory framework

Programme of professional training for acquiring the Minister

• f Finance’s

Certificate for the performance of internal audit in the public sector Rulebook on training…

Instruction on implementing practical training…

Instruction on continuous professional improvement … Decision on the amount

• f training

costs… BASIC TRAINING CONTINUOUS TRAINING Instruction for implementing mentorship

6 -12 months

Written exam Oral exam - on performed practical internal audits in front the Oral exam commission 1.module

• 2. module
• 3. module
• 4. module
• 5. module

Minister of Finance’s Certificate

• 7. Training for certified internal auditors in the

public sector – Basic training

Practical experience 2 audits

• All trainings (basic and continuous) are conducted at the premises of

the Ministry of Finance.

• The Decision on the amount of training costs, the manner and the

exemption from the training costs for the profession of certified internal auditor in the public sector proscribes costs for the participants for attending the basic module.

• 7. Training for certified internal auditors in the

public sector – Basic training

• After acquiring the Minister of Finance’s certification for the

performance of internal audit in the public sector, auditors are obliged to continuously improve their acquired knowledge, skills and competences for the purpose of:

– maintaining conditions for independently performing internal audit

work,

– to improve internal audit work.

• Continuous training is proscribed in accordance with the Instruction
• n continuous professional improvement of internal auditors for the

public sector (Official Gazette 24/2016) which regulates:

• areas of continuous professional improvement,
• activities of continuous professional improvement,
• criteria for recognizing continuous professional improvement,
• reporting on continuous professional improvement.
• 7. Training for certified internal auditors in the

public sector – Continuous training

Examples of internal audit workshops from the Catalogue:

• Applying analytical procedures in internal audit,
• Reporting on results of internal audit engagement,
• Introduction to internal audit of EU funds,
• Performing audits of efficiency of asset management,
• Advisory engagement of internal audit,
• Lessons learned: defining risks and structuring the findings,
• Development of information systems in public sector institutions.
• 7. Training for certified internal auditors in the

public sector – Continuous training

Year Number of workshops Number of terms Number of participants 2013 12 15 254 2014 11 17 384 2015 5 7 213 2016 7 11 493 2017 5 13 484 Total 40 77 2.195

• 7. Training for certified internal auditors in the

public sector

• 8. Programme Council for professional training of

internal auditors in the public sector

• The Programme Council was established by a Decision from the

Minister of Finance in 2010, as an advisory body to the CHU which gives and considers proposals for improvement of professional training of internal auditors: – approves regulations concerning professional training of internal auditors, – proposes trainers for conducting trainings, – evaluates the materials for trainings, – comments and give recommendations for improvement

• f

professional training.

• Members of the Program Council are persons with great experience

and knowledge in the field of training of internal auditors in the public sector, who at the proposal of the CHU are appointed by the Minister of Finance. The president of the Council is the Head of the CHU.

…and for the last

• In addition to above mentioned, the Ministry of Finance organizes meetings

with finance directors when: – the new guidelines for producing budget are being drafted, – changes in financial reporting.

• Regular meetings are held with internal auditors, especially when new

regulations and methodology are being adopted.

• We have 15 years of annual seminar practice for all internal auditors in the

public sector.

• EU funded project - round tables, workshops, conferences and meetings are

performed with targeted groups (internal auditors, financial directors, persons responsible for development of ICS etc..) depending of project activities ( of EU project whose BC is the CHU). Plan for the future:

• To introduce an annual seminar for financial directors on current topics.

Thank you for listening!

mirna.jurcic@mfin.hr