consolidated expenditures for all levels of government included in the Budget Framework Paper (BFP) Strengthen the capacity for public revenue projections for BFP and budgets in the Federation of BiH The ability of the FMF to independently apply the econometric model when making projections has been set up Q2 2018 Budget. World Bank Sector for Tax Policy and Public Revenue Expand the coverage of projections by adding projections of consolidated expenditures of all levels of government in BFP BFP which also includes projections of consolidated expenditures of all levels of government in the Federation of BiH has been adopted Q2 2018 Budget Sector for Budget and Public Expenditure Strengthen the capacity for macroeconomic analysis and fiscal projections, improve presentation and explanation of macroeconomic parameters Economic and fiscal policy guidelines are regularly adopted and published on the website of the Federal Ministry of Finance Q2 2018 Budget Sector for Budget and Public Expenditure
Measure 3: Strengthening the capacity for action in relation to fiscal performance and fiscal risk Result Activity Indicator Deadline Source of funding Institution/Sector Stronger fiscal coordination in connection with fiscal performance and fiscal risk Implement regulations on fiscal performance having an impact on the budgets of all levels of government Q4 2017 Sector for Budget and Public Expenditure Establishing FIA application at cantonal level Establish an additional FIA module within the BPMIS application for fiscal impact assessment applied by budget users at cantonal level FIA application is fully applied at cantonal level Q4 2018 Sector for Budget and Public Expenditure Cantonal ministries of finance
Pillar II – Revenue mobilization Measure 1: Restructuring the tax burden Result Activity Indicator Deadline Source of funding Institution/Sector Redistribution of tax burden Prepare and adopt new laws: Law on Personal Income Tax FBiH and Law on Contributions FBiH Law on Personal Income Tax and Law on Contributions are adopted and entered into force Q2 2017 Budget Sector for Tax Policy and Public Revenue and Sector for Economic Finance Analyze the process of property taxation A document of the analysis of the property taxation process Q4 2019 Budget, Donors, IPA Sector for Tax Policy and Public Revenue Prepare and adopt new laws: Law on Property Ownership and Transactions in FBIH Law on Property Ownership and Transactions in FBIH is adopted and entered into force Q4 2020 Budget Sector for Tax Policy and Public Revenue
Measure 2: Other tax policy issues Result Activity Indicator Deadline Source of funding Institution/Sector Laws harmonized with EU practice and improvement of business climate Identify and harmonize tax laws in accordance with the guidelines of the Stabilization and Association Agreement (SAA) Tax laws are harmonized with the SAA guidelines Q2 2020 Donors, Budget Sector for Tax Policy and Public Revenue Establish a register of taxes and fees The register of taxes and fees has been established Q1 2018 Budget, USAID FAR Devise and implement activities for more efficient control over organizers of games of chance Analyzing organizers of games of chance from the aspect of influence on the business environment, public revenues, employment and socially useful activities Q4 2019 Budget Sector for Tax Policy and Public Revenue Tax Administration Introduction of electronic management of administrative cases in tax matters Second-instance database has been established Q4 2020 Budget, Donors, IPA Develop and draw up a legal framework for the settlement of outstanding tax liabilities Legislation regulating tax debts has been adopted Q4 2017 Budget Sector for Tax Policy and Public Revenue Develop and implement activities that will facilitate the payment of public revenues A technical solution for simplified payment has been made Q4 2020 Budget, Donors, IPA Sector for Tax Policy and Public Revenue Tax Administration
Pillar III – Budget planning and development Measure 1: Expanding the coverage of the budget and BFP Result Activity Indicator Deadline Source of funding Institution/Sector Expanding the coverage of the budget and Budget Framework Paper Capacity building for macro projections and projections of revenues and expenditures A Framework Budget Paper with projections of consolidated public spending has been prepared. Q1 2018 Donor or budget Sector for Budget FMF Linking budget users’ strategic plans to the Budget Framework Document Budget users’ programs are aligned with the Budget Framework Paper Q2 2018 No funds needed Sector for Budget FMF Improving BPMIS for budgeting in n+2 format Budget form is in accordance with the Law on Budgets in the Federation of BiH Q2 2018 Donor or budget Sector for Budget FMF Preparing budget proposal in n+2 format Budget proposals are prepared in accordance with the Law on Budgets in the Federation of BiH Q4 2018 No funds needed Sector for Budget FMF
Measure 2: Accounting and reporting Result Activity Indicator Deadline Source of funding Institution/Sector and timely reporting by all level of government and extrabudgetary funds on a quarterly and annual basis Revise rulebooks on fiscal reporting of lower levels of government and other reporting entities to rationalize the reporting framework and to ensure the reliability and timeliness of consolidated reporting in FBiH Amendments to legislation and secondary legislation for a new method of reporting (included extrabudgetary funds, monthly reporting) have been adopted Q2 2017 No additional funds are needed FMF Provide training for all levels of government and other reporting entities on changes to rulebooks Training conducted Q2 2018 No additional funds are needed FMF FMF shall publish monthly revised budgets, comparing actual results every month with monthly projections made at the beginning Regular practice of monthly revision of monthly budget projections according to actual results has been introduced Q1 2018 No additional funds are needed FMF Each budget user shall introduce a practice to publish quarterly and annual reports. Reports should be published by the Federation, local and cantonal authorities and extrabudgetary funds All levels of government and extrabudgetary funds regularly publish monthly, quarterly and annual reports Q2 2018 No additional funds are needed FMF, cantonal ministries of finance and municipal finance authorities
Update the chart of accounts which enables reporting according to Government Finance Statistics (GFS 2014 and ESA 2010) The chart of accounts is updated Q4 2018 No additional funds are needed FMF Training for implementing ESA 95 and ESA 2010 at all levels of government Instructions for consolidation and reporting to the EU Q4 2019 Donor funds and IPA FMF Adopt and implement IAS PS IAS PS implemented Q1 2019 Donor funds and IPA FMF Prepare and apply appropriate standards for fiscal reporting Fiscal reporting according to GFS 2014 and ESA 2010 is implemented Q1 2019 Donor funds and IPA FMF
Measure 3: Cash management Result Activity Indicator Deadline Source of funding Institution/Sector Adopt and implement procedures for preparing projections of cashflows in BMIS or ORACLE BMIS/ORACLE upgraded, cashflow projections are regularly prepared at all levels of government 2017 Budget FMF Strengthen the capacity of the cash management unit Employees in cash management units are trained to apply procedures of preparing projections 2017 Budget FMF
Measure 4: Settling arrears Result Activity Indicator Deadline Source of funding Institution/Sector Establish a and transparent method of monitoring and publication of the status of arrears Document the status of arrears at all levels of government, publish reports on arrears Reports on the status of arrears adopted for all levels of government Q2 2017 Donor FMF and cantonal ministries of finance Establish a system of reporting on arrears of lower levels of government and the health sector All levels of government and the health sector regularly report on arrears Q4 2017 Donor FMF and cantonal ministries of finance Establish and implement a program for resolving outstanding liabilities Program implemented Q4 2017 Donor FMF and cantonal ministries of finance Identify and implement measures for preventing the accumulation of new arrears The legislative framework and methodology for preventing the accumulation of new arrears have been adopted. It is evident that new arrears do not accumulate Q4 2017 Donor FMF and cantonal ministries of finance
Managers and employees are trained / acquainted with the requirements and responsibilities in terms of financial control Capacity building of FMF and cantonal MoFs (budget/treasury), training and support to the development of ex-ante and ex-post controls (PIFC Strategy, measure 2.1) Number of trained staff in FMF / cantonal MoFs % of systematized jobs in sectors/departments of finance filled Continuously 2017-2020 Budget Potential technical assistance projects FMF, CHU FMF, Sector for Budget and Public Expenditure FMF, Treasury Sector Workshops and seminars for employees in finance units of budget users (PIFC Strategy, measure 2.3) Number of workshops/seminars concluded Number of certifications issued to employees in finance departments Continuously 2017-2020 Budget Potential technical assistance projects FMF, CHU, Civil Service Agency FBiH Organization of workshops and seminars for managers on implementation of managerial accountability in processes of fiscal responsibility (PIFC Strategy, the measure 2.5) Number of workshops/seminars concluded Managers are actively involved in drafting the Declaration of Fiscal Responsibility Number of pilot activities held at users, e.g. training in the workplace Continuously 2017-2020 Budget Potential technical assistance projects FMF, CHU, Pilot institutions, Civil Service Agency FBiH Strengthened capacities and developed coordination role of the Central Harmonization Unit Capacity building of CHUs (PIFC Strategy, measure 8.1) Degree of occupancy of systematized jobs in CHUs 2017-2020 Budget FMF Strengthening the cooperation with carriers of reform processes on the development of laws and bylaws and measures for improving the Number of laws and bylaws issued in cooperation (Budget Sector, Treasury Sector, cantonal MoFs, FZZPR) 2017-2020 Budget FMF, CHU
system (PIFC Strategy, measure 8.2) Strengthening cooperation with budget users (PIFC Strategy, measure 8.3) Number of meetings held (with heads of budget users, heads of finance departments, coordinators for financial management and control, heads of internal audit units and internal auditors) Information collected to improve the methodology 2017-2020 Budget FMF, CHU Strengthening cooperation with the SAI in order to exchange information and establish control systems (PIFC Strategy, measure 8.4) Number of quarterly meetings held 2017-2020 Budget FMF, CHU Monitoring and verification of the quality of systems (FMC and IA) (PIFC Strategy, measure 8.5) Reports of CHU on FMC and IA adopted by the Government of FBIH 2018-2020 Budget FMF, CHU Development of cooperation in the field of training for IA and FMC (PIFC Strategy, measure 8.6) The catalog of trainings of ADS with trainings in the area of FMC and IA has been agreed Curriculum of training of professional associations has been agreed 2017-2020 Budget Potential technical assistance projects FMF, CHU Civil Service Agency FBiH Professional associations
Cooperation with other CHUs and international cooperation (PIFC Strategy, measure 8.7) Harmonized framework documents in collaboration with other CHUs have been adopted Positive opinions of the EC Directorate General for Budget New technical assistance projects approved, bilateral cooperation, etc. Continuously (2017-2020) Budget Potential technical assistance projects FMF, CHU Measure 2: Strengthening capacities and improving the performance of internal audit Result Activity Indicator Source of funding Institution/Sector Recruited/ redeployed additional internal auditors Capacity building in IA units at the level of FMF, large federal ministries, cantonal MoFs (PIFC Strategy, measure 6.1) Increased number of internal audit units with more than two internal auditors 12/2020 Budget Budget users obliged to established internal audit Analysis of the situation and initiative for adequate organizational positioning of internal audit and positioning of internal audit profession (categorization, job description, salary) - Federal level (PIFC strategy, measure 6.2) The internal audit function and tasks of the internal audit incorporated into the Law on the Organization of Administrative Bodies in FBiH, Law on Civil Servants and Law on Salaries for the Federal level Uniformly classified jobs and coefficients for salaries in IA 12/2017 Budget Potential technical assistance projects FMF, CHU Civil Service Agency FBiH Federal Ministry of Justice
Improved expertise of internal auditors through continuous professional education Developing training programs and organizing seminars and workshops for internal auditors (PIFC Strategy, measure 6.3) Number of conducted trainings, seminars, workshops, number of trained internal auditors Budget Potential technical assistance projects FMF, CHU in cooperation with training providers (professional associations, Civil Service Agency FBiH) Guidelines and procedures for directing internal audit activities into more complex / risky business areas have been prepared Supplements to the Methodology/ adoption of a new Internal Audit Methodology (PIFC Strategy, measure 5.3) New Internal Audit Methodology adopted and published in accordance with the new legislative amendments and new internal audit standards New Internal Audit Methodology adopted and published in accordance with the new legislative amendments and new internal audit standards 12/2018 Budget Potential technical assistance projects FMF, CHU Directing internal audit activities to more complex/risky areas (budget planning/execution, grants, subsidies) (PIFC Strategy, measure 7.1) Increasing the number of audits performed in the area of planning, budget execution, grants, subsidies Budget Heads of internal audit units / heads of budget users Performing horizontal and vertical audits (PIFC Strategy, measure 7.2) Number of performed horizontal/vertical audits Budget IPA and other possible technical assistance projects FMF, CHU (coordination of planning, methodological orientation) Internal auditors in relevant institutions
Measure 3: Strengthening the budget inspection function Result Activity Indicator Source of funding Institution/Sector Strengthened budget supervision function Building and strengthening the capacity of the Budget Supervision Unit Number of employees in the Budget Supervision Unit at the federal Ministry of Finance Number of trainings conducted for employees in the Budget Supervision Unit Budget FMF, legal Sector, CHU Developing methodology for conducting ex-post controls for grants, subsidies, transfers (PIFC Strategy, measure 3.5) Guidelines for the implementation of control on the site have been adopted % of costs covered by ex-post controls in relation to the total expenses for grants, subsidies, transfers, etc. Number and value of identified irregularities on the basis of conducted ex-post reviews Budget Potential technical assistance projects FMF, CHU, Treasury Sector, Budget Sector Drafting guidelines on detection, treatment and reporting on irregularities (PIFC Strategy, measure 3.6) Guidelines on detection, treatment and reporting on irregularities have been published Amounts returned to the budget 12/2018 Budget Potential technical assistance projects FMF, CHU, Sector for Budget, Budget Supervision Unit
Pillar VI – External audit Measure 1: Ensuring functional, operational and financial independence of the Audit Office. Result Activity Indicator Deadline Source of funding Institution/Sector Include the Audit Office of the Institutions in FBiH in the Constitution of FBiH, to be outside the influence of the executive branch and thus ensure the functional, operational and financial independence Present the initiative to the competent authorities in the Federation of BiH to include the Audit Office of the Institutions in FBiH in the Constitution of the Federation of BiH The initiative and procedure started 2017 No additional funds are needed Audit Office of the FBiH Institutions Through media channels raise awareness and emphasize the importance of including the Audit Office of the Institutions in the Federation of BiH in the Constitution of the Federation of BiH Video clips, educational material, etc. 2017 No additional funds are needed Audit Office of the FBiH Institutions Through the Coordinating Committee continue strategic efforts to influence the legislative and executive authorities and other stakeholders to ensure the functional, operational and financial independence Functional, operational and financial independence of the Office is ensured. 2017 No additional funds are needed Audit Office of the FBiH Institutions Strengthen the financial independence of the Audit Office Continue activities through the Parliamentary Committee responsible for auditing to ensure full financial independence of the Audit Office in accordance with the legislation 2017 No additional funds are needed Audit Office of the FBiH Institutions
process process Ensure timely translation and availability of ISSAI standards and guidelines ISSAI Standards and Guidelines is translated 2018 No additional funds are needed Audit Office of the FBiH Institutions Harmonize the methodology for financial audits and performance audits with changes to ISSAI standards Harmonized methodology for carrying out financial audit 2018 No additional funds are needed Audit Office of the FBiH Institutions Systemic monitoring of procedures according to in order to increase accountability in the public sector Establish a register of recommendations given to auditees for financial audit and performance audit The registry is put into operation 4th quarter 2017 No additional funds are needed Audit Office of the FBiH Institutions Adopt procedures for monitoring activities according to recommendations (especially for performance audit) Procedures passed 4th quarter 2017 No additional funds are needed Audit Office of the FBiH Institutions Strengthen the role of quality control and quality assurance in auditing Fill with qualified staff the Sector for Methodology and Quality Control and ensure that it is operational 2018 Budget Audit Office of the FBiH Institutions Harmonize the methodology for performing quality control and quality assurance with changes to ISSAI The methodology is in line with the amendments to the ISSAI 2018 No additional funds are needed Audit Office of the FBiH Institutions
standards standards Strengthen the capacity of auditing Prepare a strategic plan to increase the number of professional audit staff in the Audit Office of the Institutions in the Federation of BiH to ensure quality performance of the tasks set out in the Audit Law and the Annual Plan and work program Strategic plan for increasing the professional auditing staff is implemented 1st quarter 2017 Budget Audit Office of the FBiH Institutions Implement a strategic plan to increase the number of professional audit staff 2020 Budget Audit Office of the FBiH Institutions Improve communication with key stakeholders such as Parliament of FBiH, Government of FBiH, legislative bodies, the media and citizens to increase the impact of audit In addition to the continued development and professionalization of the entire auditing process, improve the structure of audit reports, by introducing executive summaries and graphical methods and clearer language to present the main findings Improved structure of audit reports, adopted procedures for consideration by competent authorities at all levels of government. 2018 No additional funds are needed Audit Office of the FBiH Institutions Establish formal procedures for communication and cooperation with legislative bodies and the Central Harmonization Unit 2018 No additional funds are needed Audit Office of the FBiH Institutions Define clear procedures for reviewing audit reports, with clear deadlines set by competent authorities 2018 No additional funds are needed Audit Office of the FBiH Institutions
adopted and being applied is adopted adopted and entered into force Tax laws are harmonized with EU practice and business climate is improved Tax laws harmonized with SAA guidelines Second-instance body database is established. Efficient, effective and transparent management of the Tax Administration Organization scheme of Headquarters is established on the basis of the functional principle Large Taxpayer Center established according to business sectors Taxpayers communicate electronically with the TA FBiH A methodology is set up to monitor the movement of settling outstanding tax liabilities Pillar III – Budget planning and development Indicators 2017 2018 2019 2020 Budget Framework Papers and budgets are prepared in the BPMIS system Budgets of FBiH and all cantons are prepared in the BPMIS application. Program budgeting is implemented The budget of the Federation of BiH for 2020 is adopted and published in program format Budgets of all cantons for 2021 are adopted and published in program format Pillar IV – Budget execution
Indicators 2017 2018 2019 2020 BMIS which monitors budget planning and execution implemented at all levels of government of FBiH At the level of FBiH and 5 cantons At the level of FBiH and all 10 cantons All levels of government and extrabudgetary funds regularly publish monthly, quarterly and annual reports New legislation for reporting adopted All levels of government and extrabudgetary funds regularly publish monthly, quarterly and annual reports IAS PS implemented IAS PS adopted IAS PS implemented Updated chart of accounts which allows reporting according to GFS and ESA standards Analysis of non-conformance of the chart of accounts with GFS and ESA adopted New chart of accounts updated and adopted Instructions for consolidation and reporting to GFS and ESA adopted and implemented. Reporting according to GFS and ESA standards implemented at all levels of government Cash flow projections are regularly prepared at all levels of government BMIS/ORACLE upgraded Projections are regularly prepared Comprehensive and transparent method of monitoring and publishing of the status of arrears is established Reports on the status of arrears for all levels of government are adopted All levels of government and the health sector regularly report on arrears Efficient debt management Public enterprises, extrabudgetary funds, agencies and other institutions report on IT system for debt management is implemented at the Federal and cantonal
auditors Number of conducted trainings, seminars, workshops for internal auditors 3 conducted trainings, seminars, workshops 5 conducted trainings, seminars, workshops 7 conducted trainings, seminars, workshops 9 conducted trainings, seminars, workshops New Internal Audit Methodology adopted and published (in accordance with the legislative amendments and new internal audit standards) New Internal Audit Methodology adopted and published in the official Gazette of the Federation of BiH Increasing the number of audits performed in the area of planning, budget execution, grants, subsidies Increased number of internal audits performed by 5% Increased number of internal audits performed by 10% Increased number of internal audits performed by 15% Increased number of internal audits performed by 20% Increased number of horizontal/vertical audits performed 2 horizontal/vertical audits performed 4 horizontal/vertical audits performed 6 horizontal/vertical audits performed Number of employees in the Budget Supervision Unit at the Federal Ministry of Finance 1 employee in the Unit 2 employees in the Unit 3 employees in the Unit
Number of trainings conducted for employees in the Budget Supervision Unit 2 trainings conducted 4 trainings conducted 6 trainings conducted Guidelines for performing on-site controls adopted Guidelines for performing controls adopted and published % expenditures covered by ex-post controls in relation to total expenditures for grants, subsidies, transfers, etc. 5 % expenditures covered by ex-post controls 10 % expenditures covered by ex-post controls 15 % expenditures covered by ex-post controls Guidelines on detection, treatment and reporting on irregularities are published Guidelines on detection, treatment and reporting on irregularities are published Pillar VI – External audit Indicators 2017 2018 2019 2020 Functional, operational and financial independence of the Audit Office is ensured The Audit Office of the Institutions has been included in the Constitution of the federation of BiH. Amendments to the legislation shall ensure the financial, operational and functional independence of
the Office. ISSAI standards are applied throughout the audit process Ensure timely translation and availability of ISSAI standards and guidelines The methodology for financial audits and performance audits are harmonized with changes to ISSAI standards Strengthened the capacity of auditing A strategic plan to increase the number of professional auditing staff in the Audit Office is prepared Sector for methodology and quality control filled with expert staff