The purpose of the consolidated annual report is to inform the Croatian government on the activities that are carried out in a past period in the development of the system of internal financial control, on the current state and future direction of the system of internal financial control.
Budget users are obliged to produce their annual reports on the performed internal audits and the activities of internal audit based on the Instruction on the Production of the Annual Public Internal Financial Control System Report.
In accordance with the Instructions annual report on internal financial control system comprising:
1. Annual Financial Management and Control System Report (AR-FMC form)
2. Annual report on the completed audits and internal audit activities (AR-IA form)
Following budget users are obliged to produce and submit annual report :
- central state administration bodies
- state budget extra-budgetary users
- county centers
- the City of Zagreb
- large towns with more then 35 000 population
These budget users are obliged to submit their annual reports in AR-FMC and AR-IA forms, to the Central Harmonisation Unit until 31 January for the previous year
In addition to the above, the report on performed audits and internal audit activities (AR-IA form) submit and those who have established internal audit (eg hospitals, universities, colleges, etc.)
Other budget users are not obligated to have an annual report on the system of financial management and control (AR-FMC form), but they report on the functioning of the system of financial management and control, making claims of fiscal responsibility in accordance with the Regulation on the preparation and delivery of the Statement of fiscal responsibility and reports on application fiscal rules.