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Serbia’s local governments honored for progress in public finance management

At the National Conference in Aranđelovac, Ana Jolović, director of the RELOF3 project, highlighted the visible progress made by Serbian cities and municipalities in managing local public finances. However, she emphasized that there is still significant work ahead to further strengthen management responsibility, improve efficiency, and provide better services to citizens. Jolović added that local governments would continue to have the support of relevant ministries and the RELOF3 project, which is funded by the Swiss government.

The conference, organized by RELOF3, gathered representatives from local governments, ministries, domestic and international experts. During the event, the results of an analysis on management responsibility, conducted using the RELOF index, were presented. This analysis covered ten local governments, 45 public companies, and 88 indirect budget beneficiaries. Jolović stressed that the primary concern is no longer just ensuring that citizens’ funds are legally used, but focusing on the effects of the money spent.

She outlined plans to strengthen internal audits as independent services and to analyze all companies founded by cities and municipalities. A model for monitoring subsidies and grants from local budgets will also be developed this year, from decision-making to assessing the impact of allocated funds.

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Spomenka Wirzburger, Assistant Minister of Finance, emphasized the continued support for internal audits through certification of auditors in the public sector and the use of digital tools for planning audits. She confirmed that by the end of the year, all cities and municipalities should have a functional internal audit system in accordance with the Law on the Budget System.

Katrin Oxenbein, Deputy Head of Cooperation at the Swiss Embassy, highlighted the significance of public finance management reforms at the local level. These reforms are vital not only for Serbia’s European integration but also for enhancing citizen satisfaction. Oxenbein stated that implementing management responsibility will improve local governance, motivate employees, and lead to better services for citizens.

Marija Pilipović from the Ministry of State Administration and Local Self-Government shared plans to propose changes to the regulatory framework, aiming to introduce a competency and performance-based evaluation system. This change is expected to improve organizational results and motivate employees to develop their skills.

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Bratislava Ćirić, director of the Pirot Public Enterprise “Gradska toplana,” discussed how participation in the RELOF3 project helped improve management responsibility, corporate governance, and business relationships. She emphasized the focus on better communication with service users to promptly address inquiries and collect feedback.

Several municipalities and organizations received awards for their achievements in improving management responsibility within local self-government systems. The cities of Kragujevac and Pirot, the municipality of Raška, and the Preschool “Veselo detinjstvo” in Raška were recognized for their top ratings in their respective categories according to the RELOF index. Awards were also presented to individuals such as Marija Krstić and Marija Panić from Pirot, Svetlana Crnjanski from Zrenjanin, Stevan Despotov from Žablje, and Marija Leković from Kragujevac.

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