The local boards are budget beneficiaries of the local self-government units in which territories they are established and can only fulfil their obligations from the municipal or city budget. The financial, accounting and bookkeeping operations of local self-government are carried out in accordance with the Budget Law and executive regulations, as well as, decisions and conclusions passed by the City Council, or instructions and directions given by the mayor and instructions given by the Finance Department and the Department of Local Self-Government and Administration. The funding of local board activities is regulated by the Decision on the funding methods of the activities of the local boards operating in territory of the city of Rijeka.
According to the Fiscal Responsibility Act and the Decision on budget execution of the City of Rijeka, city administration departmental heads and the heads of the legal entities, budget beneficiaries (in this case the presidents of local board councils) are responsible for legal, correct, efficient and economic use of earmarked budgetary funds.
The funding of local board activities is regulated by the Decision on the funding methods of the activities of the local boards operating in the territory of the city of Rijeka. The local boards cannot generate income from their activities or set up other legal entities (associations, companies, crafts, etc.). The City of Rijeka ensures funding to local boards from budgetary funds that form an integral part of the Financial plan of the local boards and those that are not an integral part of the Financial plan of the local boards.
Income and expenses of the local boards
All local board income is realised from the Budget of the City of Rijeka as well as general income, inflows and donations, while local board expenses are all expenses necessary for realising programme activities established by the financial plan and the annual activity plan.
- funds set aside in the budget of the City of Rijeka for each local board for programme activities through the Department of local self-government and administration, pursuant to programmes presented by the local board councils and the opinion given by the Programme Evaluation Committee (maximum amount HRK 20,000.00 annually for each local board)
- funds that the local boards realise from the city budget on the basis of adopted programmes from various fields (programmes in the field of culture, sports, ecology and the best garden, balcony, window) up to the amount determined by the competent city administration department in agreement with the Department of local self-government and administration for the budget year
- funds that the local boards realise through donations and incentives for donations (in the amount of donations made, but up to a maximum of HRK 5,000.00 annual incentive)
- funds for entertainment costs and other operating expenses not mentioned by the local board councils, in the amount up to HRK 300.00 annually for each council member
The expenses of local boards are all expenses necessary for realising programme activities established by the financial plan and annual activity programmes. The expenses are projected in the amount of funds approved by the Department of local self-government and administration (total and by individual programmes), and in the amount of funds approved by the competent city department, that is, in the amount of budgeted income from donations. The expenses that are financed from incentives for donations are budgeted in the amount of the income plan from donations or up to a maximum of HRK 5,000.00 for each local board. Expenses relating to entertainment costs and other operating expenses not mentioned by the local board councils are budgeted in the amount up to HRK 300.00 annually for each council member. The type of expenditure (heading in the budget plan) is determined in the financial plan of the local board depending on the source of income and depending on the type of approved expenditure necessary for realising programme activities.
Total budgeted and realised expenses cannot exceed the total budgeted and realised income.
Expenses not subject to the financial plan of the local board councils
The City of Rijeka, directly through competent departments, i.e. professional services, ensures financial means for refurbishment, equipment, investment maintenance, overheads of local self-government buildings, IT equipment, office supplies, occupational safety means, postal and telephone services, small inventories, etc. and the salaries of local board secretaries and compensation to local board councillors, programmes implemented at local self-government level (Rijeka local partnership programme, best online LB, best day of LB, local boards’ sports competitions on the occasion of St. Vitus’ Day’, publishing public calls for utility priority proposals etc.), realising utility priorities, (small utility interventions, current maintenance activities of utility structures and devices, purchasing land for utility interventions, drafting project documentation, drafting territorial planning documents, etc.