Annex IV

Posted on Jun/26/2007 by admin

LAW

ON FINANCE DIRECTORATE OF BRCKO DISTRICT OF BOSNIA AND HERZEGOVINA

I BASIC PROVISIONS

Article 1

(Subject of the Law)

This Law shall serve to set up the Finance Directorate of Brcko District of BiH (hereinafter: the Directorate) and prescribe its establishing, organization, administering and competence.

Article 2

(Definition)

In terms of this Law the phrases used shall have the following meaning:

a) Public revenues – shall refer to tax revenues and non-tax revenues, revenues from own sources, grants and other revenues mandatorily collected and deposited into and paid from the Single Account of the Treasury (hereinafter: the SAT).

b) Investing of funds – shall denote depositing a part of funds available in the SAT, which are not required for executing budgetary commitments, with business banks.

c) Budget – shall refer to the regulation of the Assembly of Brcko District of BiH (hereinafter: the Assembly) that governs the plan of financial activities, amounts of revenues and receipts, and of determined expenditures and other payments over a period of one fiscal year.

d) General ledger of the Treasury – is a systematic record of transactions and business activities, revenues, expenditures, assets, sources of funds and liabilities of Brcko District of BiH (hereinafter: the District), which together with the SAT represents the basic system of managing public expenditures of the District.

e) The SAT is an all-inclusive account of the Treasury that consists of deposit accounts, accounts for investing and protection of funds, transaction accounts and special purposes accounts, in which all financial operations are registered and which contains all budgetary funds.

II FINANCE DIRECTORATE

Article 3

(Status)

The Directorate shall be established as a body of public administration of the District, in accordance with the District Statute (hereinafter: the Statute).

Article 4

(Seat and Seal)

(1) The seat of the Directorate shall be in the District.

(2) The Directorate shall have a round seal containing the text: «Bosnia and Herzegovina Brcko District of Bosnia and Herzegovina» written in a circular way in Latin and Cyrilic alphabets, with words «Finance Directorate» written in the middle of the seal, in both alphabets.

(3) More detailed provisions about the number, size, form, content and use of the seal shall be defined by enactment of the Directorate in accordance with the Law on Seal of Brcko District of Bosnia and Herzegovina.

Article 5

(Organization)

(1) The Directorate shall consist of the following:

Director’s Office
Treasury
Tax Administration

(2) The Director’s Office shall consist of the Head of Office and expert advisers of the Director, whose competencies shall be stipulated by the Organizational Plan of the Directorate.

(3) The Treasury shall be responsible for planning, execution, general ledger and control of the budget.

(4) The Tax Administration shall be responsible for determining, control and collecting of tax revenues.

(5) The scope of work, powers, responsibilities, as well as other issues of relevance for the functioning of the Treasury and the Tax Administration shall be regulated by separate laws.

Article 6

(Director)

(1) The Directorate shall have the Director who shall be responsible for administering the Directorate.

(2) The Director shall represent the Directorate.

(3) The Director of the Directorate shall have the status of a civil servant holding managerial position and shall have executive authorities vested in him by the District laws.

Article 7

(Duties of the Director)

(1) The Director of the Directorate shall ensure adequate imlementation of laws in the field of District finances.

(2) The Director shall be responsible for providing statistical data to competent bodies, including the Statistics Agency of Bosnia and Herzegovina.

Article 8

(Responsibilities of the Director)

(1) For his work the Director of the Directorate shall be responsible to the District Mayor (hereinafter: the Mayor) and the Assembly for proper managing and administering the Directorate.

(2) The Director of the Directorate shall particularly be responsible for:

(a) collecting of all revenues of the District,

(b) investing the District’s funds,

(d) anticipating and assessment of the District revenues as well as for submitting reports to the Assembly on availability of revenues for the annual budget of the District,

(e) financial standing of the District.

Article 9

(Selecting and Appointing the Director)

(1) The Director of the Directorate shall be appointed by the Mayor based on criteria of expertise and binding recommendation of an independent board for the selection of candidates in accordance with law.

(2) The criteria for appointing the Director shall also include a requirement that the Director is expert in respective field and that he displayed high standards of honesty and integrity in discharging his duty.

Article 10

(Dismissal of the Director)

(1) The employment of the Director of the Directorate shall be terminated in accordance with the Law on Civil Service in Administrative Bodies of Brcko District of BiH (hereinafter: the Law on Civil Service).

(2) Upon termination of employment referred to in Paragraph (1) of this Article, the Treasury Director shall discharge the duties of the Director of the Directorate.

(3) Discharging of duty referred to in Paragraph (2) of this Article shall not last more than 3 months.

Article 11

(Conflict of Interest)

The Director of the Directorate may not discharge any other function in public or private sector during the term of his appointment, neither may he be a member of a political party or in any way involved in a political activity, all in line with the Law on Civil Service.

III DIRECTORATE’S SCOPE OF WORK

Article 12

(Competence)

The competencies of the Directorate shall be the following:

a) collecting and distributing public revenues of the District,

b) implementing the policy in the field of the District finances,

c) enacting implementing regulations in the field of finance and publishing it in the Official Gazette of Brcko District of BiH,

d) implementation of laws and other regulations,

e) giving opinions about the application of regulations in the field of finance,

f) reporting to the Assembly on availability of revenues for the annual budget,

g) participating in preparing a proposal of annual budget in coordination with the Deputy Mayor District,

h) delivering reports on execution of the budget in accordance with the law, and for the needs of the Mayor,

i) confirming availability of funds for all expenditures, transfers, investments and flow of the District funds in all accounts of the District,

j) exercising other competencies in accordance with the Statute and the law.

Article 13

(Control)

(1) The Directorate shall conduct control of expending and encumbering the District funds in accordance with the budget.

(2) The Directorate may approve expenditures in accordance with the budget.

Article 14

(Budgetary Analysis)

(1) The Directorate shall submit to the District Government (hereinafter: the Government) the budgetary analysis of draft laws and proposed decisions.

(2) Budgetary analysis shall be submitted within 8 days from the day of receiving the request.

Article 15

(Amendments to the Budget)

(1) The Directorate shall supervise collecting of revenues in the course of a fiscal year.

(2) In the event that the actual revenues deviate from those planned by more than 10% in any anticipated period, the Directorate shall make a report about the causes and reasons of deviation that occurred.

(3) The report shall be submitted to the Mayor in order to initiate the procedure of amending the budget.

Article 16

(Reporting)

At the end of every calendar year the Directorate shall submit to the Assembly an annual report on work of the Directorate and the Directorate’s work program for the following year.

IV TRANSITIONAL AND FINAL PROVISIONS

Article 17

(Audit)

(1) The operation of the Directorate shall be subject to internal control and audit in accordance with law.

(2) The Directorate shall cooperate with persons designated to conduct control and audit.

Article 18

(Application)

Provisions of Articles 9, 10, Paragraph (1) and 11 of this Law shall also apply to the Treasury Director and the Tax Administration Director.

Article 19

(Organizational Plan)

The Director of the Directorate shall enact the Organizational Plan of the Directorate within 30 days from the day this Law takes effect.

Article 20