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Statement related to the announced creation of a new Accounting Act of nonprofit organizations


TIC welcomes the initiative of the Ministry of Finance and the proposal will be to draw up a new law on nonprofit organizations, which will be to the general public, especially taxpayers strengthen the transparency of financial operations of non-profit organizations. 

We draw attention to existing legislation are not used enough in the area of ​​supervision of non-profit organizations, which means that it does not necessarily start with a new legislative proposals to control operating-profit sector effectively implemented today. 

Certain non-profit organizations are already covered, or would definitely should be some rigorous provisions of the Fiscal Responsibility Act, with regard to the amount of their funding sources, and involvement with which the public finances participate in the financing of their business. 

Existing Fiscal Responsibility Act could be amended so that the non-profit organizations are obliged to act on it. This applies especially to those that are largely financed from the state budget and the budgets of local governments. In this way, non-profit organizations were in the legal obligation to demonstrate a higher level of fiscal responsibility to the public money that would enable them work and survival.
The problem in applying this law is a non-profit organizacijana Automne effect, because the state and public donors can not influence the dismissal of heads of these bodies if you do not operate in accordance with the legal provisions of the fiscal and financial discipline, and this is one of the key determinants of sanctions Fiscal Responsibility Act . This would be the autonomy with regard to the percentage of funding from public finances, had to be limit.

TIC recommends that simultaneously with the amendments to the law on fiscal responsibility, on the part of nonprofit organizations to effectively enforce the law on the system of internal financial control in the public sector. 

The Fiscal Responsibility Act defines that to him a duty to treat all budgetary and design load users (Article 3 of the Act: "The provisions of this Act relating to the state budget and the budgets of local and territorial (regional) budgetary and extra-budgetary users of the state budget and budget local and territorial (regional) self-government established in the Register of budgetary and extra-budgetary users in accordance with the Ordinance on establishing budgetary and extra-budgetary users of the state budget and the budgetary and extra-budgetary users budgets of local and territorial (regional) government and the manner of keeping the Register of budgetary and extra-budgetary users ") . 

We suggest that non-profit organizations that donate significant funds from public money to be registered in the Register of budgetary and extra-budgetary users. This would reduce the possibility of profit oriented financing from the state budget, and that means that over them existed fiscal accountability and financial control. 

TIC believes it is necessary to create a mechanism by which the financial statements will not be transparent only in terms of numbers, but it is clear to you and to associations and non-profit organizations are spending public money.


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