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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