Basic financial control is a verification that every entity managing public funds must carry out before an obligation arises and before payment. It verifies that the operation complies with the approved budget, the contract, legal regulations, and the rules of economy and purposefulness. It is carried out by the statutory body or by employees authorised by it, and its result is recorded in writing directly on the document or on a separate sheet, with dates, names, and the signatures of the responsible persons. For municipalities, schools, and other public entities, this is an obligation arising from the Act on Financial Control, independent of any projects. In checks on grant projects, its absence or merely formal performance is a common finding, with a reduction in funding as the consequence.
See also: Financial management system, On-the-spot check, Analytical Accounting Records for the Project.
