Republic of Croatia Ministry of Finance Control of Expenditures in Budget Execution and Public Procurement Processes Budapest, Hungary 5 June 2019

BUDGET CLASSIFICATION AND REALLOCATIONS   Plan 2019 on 1 January 2019 (DP1 G) Execution January 2019 - December 2019 (PLI G) Chapter (01) – subprogram attribute HRK Total amount 1,240,967,283 457,350,434.52 - 055 MINISTRY OF CULTURE - 05505 Ministry of Culture 639 828716 224,149,273.43 - A564015 CROATIAN COMMISSION FOR UNESCO 500,000 55948.78 - 11 General revenues and receipts 200,000 3211 Business travel 25000 12,503.00 3221 Office supplies and other material costs 2,000 3225 Small inventory and car tires 3,000 3233 Promotion and information services 52,000 12,187.50 3235 Lease and rent 7,000 3237 Intellectual and personal services 25,000 4,971.40 3239 Other services 45,000 16,975.38 3293 Entertainment expenses 35,000 8,661.50 3299 Other operating expenses not mentioned 6,000 650.00 - 53 Foreign grants 300,000 10,000 85,000 23,000 27,000 50,000 - A565003 CORE BUSINESS OF CULTURE ASSOCIATIONS 7,258,831 2,637,499.84 - 41 Revenue from games of chance 3811 Current donations in cash - A565011 AWARDS FOR CULTURAL ACHIEVEMENTS 1,600,000 455,933.48 -11 15,084.00 15 000 12,603.42 230,000 115,977.50 3291 Remuneration for representative and executive bodies, commissions, etc. 180,000 38,768.52 33 000 10,000.00 Chart Filter Information ORGANISATIONAL PROGRAMME SOURCE OF FUNDS 323 ECONOMIC REALLOCATIONS: At level 4 economic classification up to level 3 Reallocation up to 5% at level 3 economic classification Budget revision 5%

FLEXIBILITY OF FINANCIAL RESOURCES Code Title Execution 2017 Plan 2018 Budget for 2019 Budget forecast for 2020 Budget forecast for 2021   381 Current donations 2,454,922 2,729,704 2,830,653 A618163 NATIONAL TRANSPLANTATION PROGRAMME 1,462,594 1,510,000 1,988,000 1,660,000 11 General revenues and income 1,421,649 1,500,000 1,600,000 1 600,000 32 Material costs 323 Service expenditure 1,126,647 1,210,000 1,240,000 324 Reimbursement of unemployed persons 37,762 40,000 60,000 329 Other operating expenses not mentioned 257,240 250,000 300,000 51 EU aid 18,065 10,000 321 Remuneration of employees 5,120 12,946 50,000 52 Other aid 22,880 559 Other refunds from EU funds 328,000 100,000 150,000 28,000 A618211 TREATMENT PER SPECIAL REGULATIONS - PSYCHIATRIC HOSPITALS 20,425,059 20,000,000 21,000,000 General revenues and receipts 20 000,000 37 Reimbursement of citizens and households based on insurance and other fees 372 Other reimbursements to citizens and households from the budget A618552 MOUNTAIN RESCUE SERVICE 470,000 2,500,129 2,574,097 2,636,124 2,698,325 500,000 38 Other expenditures 41 Revenue from games of chance 2,000,129 2,074,097 2,136,124 2,198,325 A734201 CROATIAN INSTITUTE FOR TOXICOLOGY AND ANTIDOPING 5 350 642 4,758,248 2,500,000 1,700,000 2,500 000

UNDERTAKING COMMITMENTS FINANCED FROM THE STATE BUDGET COMMITMENTS PER MULTIANNUAL CONTRACTS Up to HRK 10 mil. MINISTER OF FINANCE > HRK 10 mil CROATIAN GOVERNMENT AT THE SUGGESTION OF THE MINISTRY OF FINANCE COMMITMENTS FINANCED FROM THE BUDGET FOR THE CURRENT YEAR LIMITS DETERMINED BY THE FINANCIAL PLAN AND AMOUNT OF RECEIVED INCOME

PUBLIC PROCUREMENT AND RECORDS IN THE TREASURY SYSTEM COMMITMENT ANNOUNCEMENT Decision to start the public procurement process– includes the estimated amount of expenditures per budget address (source of funding, activity and fourth level of economic classification without data on the supplier who is still unknown) CONTRACT Concrete commitment – forms after the review and assessment of tenders by selecting the best tender pursuant to which a Contract shall be concluded ORDER FORM Document used by the budget user to order goods and services from the supplier who was selected in the public procurement process INVOICE Basic document in bookkeeping used to prove the occurrence of the commitment for the delivered goods or performed services RESERVATION By entering or transferring documents into the state treasury system they become a reservation, thereby marking budget costs in their earliest phase, up to the level established by the government budget for the current year and forecasts for the next two years, based on the actual and expected maturity date

CONTROL AND ANALYSIS OF BUDGET EXPENDITURE EXECUTION FISCAL IMPACT ASSESSMENT The Ministry of Finance states its opinion on the assessment of impact that a newly adopted regulation can have on government budget costs, before the regulation gets sent to the Government of RC THE FISCAL RESPONSIBILIT ACT Controls of the Ministry of Finance regarding the legal and earmarked use of budget funds, as well as the effectiveness and justification of program, activity or project implementation (ex post; on the spot) BUDGET LIMITS SPENDING REVIEWS - monthly - ex post; on the spot – 2014 – spending review – 2019 – ex post evaluation of the impact of chosen activities in healthcare, water economy and environmental protection ANNUAL GROWTH OF GENERAL BUDGET EXPENDITURES CANNOT EXCEED THE REFERRENTIAL POTENTIAL GDP GROWTH RATE ESTABLISHED BY EU REGULATIONS!!!

PUBLIC PROCUREMENT SYSTEM Tax Administration Court register Register of crafts Criminal records Financial Agency

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