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Description
The aim of the project is to strengthen the public financial management and control system in the Czech republic and to implement preparatory activities related to the proposal for a new legal regulation of this system.
The public financial management and control system in the Czech Republic can be considered obsolete. The efforts made so far to reform the current system have been unsuccessful. The failure was mainly due to the lack of consensus among stakeholders on assessing the current system.
The following key activities will be implemented within the project:
• independent expert assessment of the current system set-up, including recommendations to address the identified deficiencies;
• acquiring know-how and collecting best practices from other European countries in the field of financial management and control legislation;
• public consultations including establishment of an expert commission to assess outputs from public consultations and prepare inputs for regulation impact assessment in various scenarios of regulation solutions;
• targeted discussion with main stakeholders focused on key elements of newly proposed public finance management and control system,
• proposal of new public finance management and control system.
Target groups of the projects are Ministries and other state organizations, Municipalities, Regions and their organizations and Health insurance companies. Target groups will be subject of detailed analysis of public financial and control management processes. They will also be addressed to participate on public consultations.
The project will be implemented in partnership with Law Faculty of Charles University, Law Faculty of Masaryk University and Faculty of Economics and Administration of Masaryk University. The project partners will carry out analyses of the current financial management and control system and propose recommendations to address the identified shortcomings in the system.
Summary of project results
The Project Promoter did not identify any fundamental problems, on the contrary, it is possible to highlight the smooth cooperation with the Czech partners (universities), involved institutions and the Professor Padovani''s international team.
The project partners (Charles University, Masaryk University) carried out an independent professional evaluation of the public finance management and control system (Analysis of internal audit regulation, Analysis of internal control systems, Analysis of constitutional limits of regulation of public finance management and control, Analysis of procedures for violation of budgetary discipline and Analysis of foreign partner in cooperation with foreign experts from Germany, Italy and France). 5 foreign trips were made (Portugal, Latvia, Austria, Great Britain, Poland) and an independent expert commission was involved in order to obtain supporting arguments for the enforcement of the legislative change. Public consultations were held with representatives of subjects of regulation (over 700) in order to substantively discuss planned legislative changes and improve cooperation. Based on this, a draft of the substantive intent of the Public financial management and control Act was prepared and submitted to the Governement.
5 analyzes and 5 foreign trips were made in order to gain good practice.
The public consultations brought greater insight into practice and a higher level of understanding among the amended law proponent and the subjects of regulation. The unintended effect was the acquisition of inputs (analyses, documents obtained from foreign trips, minutes from public consultations, cooperation with subjects of regulation and universities) for further methodological activities of the Ministry of Finance.