CROATIAN GOVERNMENT TREASURY SYSTEM PROJECT (CGTS)

GOVERNMENT ACCOUNTING

Jasminka Keser, B Sc (Econ)

Assistant Minister of finance for government accounting

Project Director for the Government Treasury System Project

Abstract

1. Organic Budget Law and Realated Legislation

The Organic Budget Law 1994 contains the basic rules of Croatian Government Financial Management. It describes the powers, responsibilities, constraints, definitions and the various participants necessary for the successful conduct of the system of financial administration within Croatia.

2. Decree on the Treasury General Ledger System and Management of the Treasury Single Account

This Decree regulates the Treasury General Ledger System, the collection of public money, public expenditure management and control and operation of the Treasury Single Account.

3. Accounting issues

Cash basis of accounting, GTS system solution for introduction of commitment controls and problems with encumbrances.

4. Accounting procedures

The primary objective of the Croatian Government Treasury System Project is to provide comprehensive, timely and reliable financial information to the government decision making bodies by proposing the imeplementation of a set of accounting and management informaion systems which constitute an integrated Treasury management network.

5. Chart of accounts

The budget account code calssification system used does not translate directly to the Ecnomic Purpose or Functional Classification system specified for international reporting purposes. Each budget line is therefore also additionally classified in accordance with the GFS system (reffered to here as cross-classification) to alow reporting at various levels of aggregation in the reporting structure.

6. Financial reporting and financial reporting requirements

The Government Treasury System will need to generate reports for a variety of users on a daily, weekly, monthly and annual basis.

7. Functional Overview of the GTS

Fundamental functions

Core functional processes

Functional requirements

8. Functions of the central and local treasuries and Treasury Single Account (TSA)