engleski

The reform of financial management and accounting of non-profit organizations in the Republic of Croatia

Coordination of the Croatian normative framework with acquis communautaire covers all basic areas of law systematized in 32 chapters. There is no special emphasis on or requirements for harmonization and convergence of financial transactions and the transparency of the civil society operations. Regardless of this fact, in the context of general improvement of the Croatian financial system with the purpose of increasing the degree of transparency and systematic fight against corruption, the information bases of financial management and accounting of non-profit organizations have been formed and legalized. The accounting and reporting model represents an avant-garde step towards the application of advanced accounting systems based on the specific application of international accounting standards for business and public sectors. Accounting information system of non-governmental non-profit organizations perfectly meets the requirements of the publicity and transparency principle, particularly in financial reporting, since it provides transparent insight into the spending of public funds allocated to civil society organizations as non-profit organizations. In addition, the system fulfills the requirements for statistical monitoring of civil society organizations in compliance with the Eurostat standards. This paper systematically elaborates on the reformed accounting information system of non- profit organizations. It analyzes some key elements of the accounting system giving explanation for information consequences of the implemented accrual concept on the elements and performance indicators of non-profit entities. The paper explains the hypothesis that for all groups of non-profit organizations it is legitimate to apply the same rules of measurement and evaluation, recognition of revenues and expenses and internationally comparable and acceptable economic classification of revenues and expenditures. The paper emphasizes and proves that the optimum level of harmonization is achieved between the reporting systems of “private” and “governmental” non-profit organizations. Professional and scientific basis of the Croatian accounting system, financial management and non- profit organization control is partially compared to European as well as direct international environment.

Financial management ; NGO ; accounting ; control

nije evidentirano