Macedonia Gets a Grip on Forensic Accounting Techniques
Improving Public Sector Accounting, Auditing, and Control Mechanisms
The Former Yugoslav Republic of Macedonia (officially renamed the Republic of North Macedonia in February 2019) is undergoing significant reforms to strengthen its financial management and oversight capabilities. As the country prepares for EU accession, it is crucial that public sector accounting, auditing, and control mechanisms are overhauled.
Transitioning to Accrual-Based Accounting
According to recent research, Macedonia has made significant progress in transitioning to accrual-based accounting. This has been achieved through the implementation of International Public Sector Accounting Standards (IPSAS). The transition to accrual accounting is a complex process, but it is essential for transparency and accountability.
Key Benefits of Accrual-Based Accounting
- Improved financial management and oversight capabilities
- Enhanced transparency and accountability
- Better informed decision-making by government officials
- Increased efficiency and effectiveness in using taxpayer money
Budget Formulation and Execution
Macedonia has two separate laws for central government and local government budgets. Each year, a new law is adopted using the same title, with the year of issuance added.
Key Features of Budget Laws
- Separate laws for central government and local government budgets
- Annual adoption of budget laws with the same title and year of issuance
Capacity Building at the State Audit Office
The State Audit Office has been working to strengthen its capacity building through strategies such as “Strategy for Development of the State Audit Office 2013-2017”. The World Bank has also provided an overview of country context for FYR Macedonia, highlighting the importance of improving public financial management and oversight.
Key Initiatives at the State Audit Office
- Strategy for Development of the State Audit Office 2013-2017
- Capacity building initiatives to strengthen audit capabilities
Positive Impacts on Economic Development
The reforms are expected to have positive impacts on Macedonia’s overall economic development and stability. With improved financial management and oversight capabilities, the government will be better equipped to make informed decisions and prioritize investments that drive growth and job creation.
Key Benefits of Reforms on Economic Development
- Improved financial management and oversight capabilities
- Better informed decision-making by government officials
- Increased efficiency and effectiveness in using taxpayer money
- Positive impacts on economic development and stability