RELIABILITY OF FINANCIAL STATEMENTS OF OTHER PUBLIC FUND USERS IN SERBIA
RELIABILITY OF FINANCIAL STATEMENTS OF OTHER PUBLIC FUND USERS IN SERBIA

Summary/Abstract: The paper analyzes the reliability of financial reporting in one part of the public sector in Serbia, which consists of other users of public funds, included in the consolidated treasury account. It is a special group of various institutions, which are neither budget users nor public companies. It also includes sectoral, non-profit, regulatory bodies and agencies, which manage a large part of public funds. Due to insufficient harmonization of sectoral regulations with changes in financial regulations for the public sector, the reliability of their financial reporting is questioned, especially in the case of the ordered rapid change in the chart of accounts. In parallel with this issue, the reform of public financial management is underway, which is based on a gradual transition from cash to the accounting basis of all users of public funds and accounting standards for the public sector. These two processes currently run independently of each other, although they should be unique. The change of the chart of accounts must not be reduced only to the technical transfer of positions in the business books of users, because it has a deeper meaning and consequences. The paper, on the example of one of the regulatory agencies, tests the hypothesis that rapid changes in the chart of accounts due to the transition from cash to the accrual basis do not increase, but undermine the reliability of financial statements. At the same time, the circumstances under which this can be avoided and the reform implemented in a more efficient manner are

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