Pifc in Albania

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Pifc in Albania

By | Feb. 2013
Page 1 of 17
Development of PIFC in Albania- a step on the road to European Integration Dr.Hysen Muceku1, MPA, Albana Gjinopulli2 CPA

1 Director, General Department of Audit, Ministry of Finance, Tirana, Albania, h.muceku@yahoo.com, hmuceku@minfin.gov.al

2Head of unit, Methodology and Training, General Department of Audit, Ministry of Finance, Tirana, Albania, agjinopulli@yahoo.com, agjinopulli@minfin.gov.al

Conference topic: regional development

Abstract
The concept of Public Internal Financial Control (PIFC) has been developed by the European Commission in order to provide a structured and operational model to assist national governments in re-engineering their internal control environment and in particular to upgrade their public sector control systems in line with international standards and EU best practice. The democratic changes affecting all areas of life in the last years, have led to reforms in the management of public finances of the public sector in the Republic of Albania. On the road to our accession to the European Union we are in the process of important conceptual, legislative and structural reform of the Public Internal Financial Control framework with the aim of strengthening the managerial accountability of the managers of public sector organizations and further develop independent internal audit. Actually the Ministry of Finance is completing the legal framework for FMC and IA in compliance with the EU requirements. Now, we have prepared and approved “The Law on Financial Management and Control”, Law “On Public Financial Inspection” and amendments in the existing Law “On Internal Audit in Public Sector”. Such laws and other by laws, professional guidance and regulations create the legal frame where PIFC System is based for implementation. In order to ensure the transparency of public resources’ management and spending, the legislator has introduced the requirement to the Council of Ministers (through the Minister of Finance) to report on an...