Development of organizational and conceptual sustainability strategy of Public Internal Financial Control (PIFC), improvement of relations between the top management and employees, as well as among different institutions, along with joint efforts by small municipalities and mutual use of staff.

These are just some of the recommendations for further successful implementation of twinning project "Supporting the Process of Fiscal Decentralization Through Strengthening the Capacities for Sound Financial Management and Internal Financial Control on Local and Central Level", which is to be completed in February 2013, encompassing 25 institutions and 40 municipalities.

"In general, PIFC is properly administered. However, there is room for further enhancement. Sectors and units have been established, but the way in which they should operate must be improved. The degree of information exchange between the internal audit sectors for financial affairs, the two crucial unites that require proper cooperation, is low", stressed Arjan Vos, Deputy Head of Central Accounting Department within the Dutch Ministry of Finance, at Tuesday's mid-term conference of the twinning project.

Robbert Liddell, Chargé d'Affairs of the EU Delegation to Macedonia, said the Union invested efforts to help the Government in the implementation of a stable financial management system, increase of efficiency and effectiveness.

The needs for PIFC proper management have been identified. We note there is progress in this field, but believe that reforms need to continue, not only in legislation, but also through full implementation in practice", he added.

Vice Premier and Finance Minister Zoran Stavreski stressed the project has yielded the expected results thus far, adding there is room for further progress. According to him, this is not a process implemented overnight, but if one makes a comparison with the situation of few years ago, progress is evident.

"Establishment of PIFC increases the efficiency in use of public funds. Its functioning is very significant in such difficult times, especially when economy, responsibility, transparency and accountability are required. Strengthening of financial control means enforcement of principles of decentralized responsibility of leaderships and establishment of independent internal audit through development of financial management and control", emphasized Stavreski.

Eleven trainings for financial management and control have been held over the course of the project's implementation, including the participation of 840 individuals, along with six training courses for internal audit, attended by 140 people.

Twinning partners of the project are the Ministry of Finance as beneficiary and the Ministry of Local Self-Government as co-beneficiary, as well as the Ministry of Finance of the Netherlands and VNG International. The project budget is EUR 1,4 million.