PIFC

PIFC is a concept developed by the European Commission in order to help candidate countries in their internal financial control system reform. The concept is based on international standards of internal control and practice of European countries.
The PIFC represents the new culture of management, i.e. the proceeding from the traditional, Business-as-usual type of administration to active management...

PIFC elements

1. Financial management and control

Control environment
Risk management
Control activities
Information and communication
Monitoring and asessment

2. Functionally independent internal audit

financial management internal and control system assessment
testing and system evaluation
providing advices and recommendations for business improvement

3. Central Harmonization Unit is organizational unit in the Ministry of Finance in charge for PIFC coordination in the public sector of Republic of Croatia

PIFC introduces the system approach to management through:

Strategic planning
Programme planning
Risk management
Authorities and responsibilities for objective implementation and budget funds management
Records system and reporting
Self-assessment of financial management and control system (Fiscal responsibility Statement, the Self-assessment questionnair of financial management and control system)
Internal audit