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The implementation of primary functions of local development management, especially its planning, organizing and controlling, cannot leave aside the financial aspects of these processes1. This can be attributed to the fact that every decision taken in the commune concerning strategic or operational management is related to the necessity of making specific financial contributions or to the conscious resignation from an opportunity to obtain income (via tax reliefs or exemptions). Moreover, the model of financial management adopted in a particular commune determines whether its financial methods and instruments perform development or stagnation functions. The implementation of primary functions of local development management, its planning, organizing and controlling in particular, cannot disregard the financial aspects of these processes.

The decentralization process started in 2001 by broadening the responsibilities of local self-government units and changing the sources of financing public functions. In spite of these steps toward decentralization, today Croatia exhibits low level of fiscal decentralization compared to EU and SEE countries. In the paper we show that large differences in fiscal capacity between local government units and their large reliance on received grants represent one of the main barriers for further decentralization process. Based on the analysis of the results of conducted interviews with representatives of local and regional units, we present recommendations for further process of decentralization.

The main goal of the paper is to determine opportunities for the application of analytical tools to improve the management of state and local finances and increase the accountability and trust of citizens in state and local self-government units. PEFA is a useful tool for meeting such goals. PEFA is used on a global scale, primarily in countries that are beneficiaries of international aid, but also increasingly in countries that seek to increase their international credibility as well as their credibility regarding financial management in the eyes of their citizens. In the case of Croatia, PEFA was used in four cities in 2014. The implementation experience shows that PEFA allowed local government units to detect key weaknesses and technical shortcomings in their financial management, as well as to recognize the shortcomings of the provisions of certain regulations implemented at central government level. PEFA is an analytical tool that can be applied both at the national (central government) level and at the level of local self-government units. PEFA is certainly a demanding analytical tool which makes previous knowledge on financial management, budget accounting, and auditing more than desirable. For all European countries likely to join the European Union and finance part of their capital investments through EU funds, PEFA can be a very useful tool not only for the early recognition of weaknesses, but also strengths in financial management. Despite the fact that PEFA does not offer direct instructions on how to solve potential problems in financial management, the findings of the analysis with the accompanying rankings are more than sufficient to serve as recommendations for addressing weaknesses in financial management. The implementation of PEFA requires strong support of the heads of local units and the state. These are also the people expected to initiate reforms and improve financial management. As an analytical tool, PEFA can help these improvements happen much faster and more effectively., Glavni je cilj rada utvrdit˝i mogućnosti primjene analitičkih oruđa za poboljšanje upravljanja državnim i lokalnim financijama te povećanja odgovornosti i povjerenja građana u državu i jedinice lokalne samouprave. PEFA je korisno oruđe za ispunjavanja takvih ciljeva. PEFA ima raširenu primjenu u svijetu, primarno u državama koje su korisnice međunarodnih pomoći, ali sve više i u državama koje nastoje povećati svoj međunarodni kredibilitet kao i kredibilitet za financijsko upravljanje prema svojim građanima. PEFA se u slučaju Republike Hrvatske koristila na primjeru četiriju gradova u 2014. godini. Iskustva primjene pokazuju da su primjenom PEFA-e lokalne jedinice uspjele detektirati ključne slabosti i tehničke nedostatke u financijskom upravljanju, ali i prepoznati nedostatke odredbi pojedinih zakona i propisa koji su doneseni na razini središnje države. PEFA je analitičko oruđe koje se podjednako uspješno može primijeniti na razini država kao i na razini jedinica lokalne samouprave. Istina, PEFA je zahtjevno analitičko oruđe za čiju je primjenu potrebno imati prethodna znanja o financijskom upravljanju, računovodstvu proračuna i trgovačkih društva te reviziji. Za sve države u Europi koje teže pristupiti Europskoj uniji te dio svojih kapitalnih investicija financirati iz fondova EU-a, PEFA može biti dobro sredstvo i oruđe za rano prepoznavanja slabosti, ali i snaga u njihovu financijskom upravljanju. Unatoč tome što PEFA ne nudi izravne prijedloge za rješavanja potencijalnih problema u financijskom upravljanju, nalazi iz provedene analize sa dodijeljenim rangovima i više su nego dovoljni da posluže kao preporuke za otklanjanja slabosti u financijskom upravljanju. Za provedbu analiza PEFA potrebno je imati čvrstu potporu čelnika lokalnih jedinica i države. To su ujedno i osobe od kojih se očekuje iniciranje reformi i poboljšanja financijskog upravljanja. PEFA kao analitičko oruđe može pomoći da se ta poboljšanja ostvaruju znatno brže i kvalitetnije.

The structured dialogue is a powerful form of communication between citizens and decision makers in the local government units (LGUs). Present state analysis shows that the leaders of municipalities and cities are generally not open to the implementation of a structured dialogue, and that citizens are also not too interested for that process, because they do not believe they can make a difference. However, a literature review and analysis of the implementation of projects structured dialogue through the Youth in Action and Erasmus + programs indicates that there are success stories and examples of good practice in this area. These examples come also from the "neighbourhood", from small LGUs, not necessarily from highly developed countries or just from the big cities ; but the number of those examples is low. This paper proposes a methodology for increasing the level of structured dialogue in fields of different social issues in small local government units in Croatia (or other LGU with similar characteristics outside Croatia). The methodology is based on the Deming cycle and Balanced scorecard (BSC). The methodology defines what actions need to be taken in order to come up with a solution to social problems in a LGU. To evaluate proposed methodology, it was applied to 5 LGUs. A prerequisite for the application of the methodology is the existence of the will and motivation of both parties (LGU and citizens) to work together on social issues. The paper proposes a brief question mark that can be used to quickly identify the readiness of local government to implement such a methodology.

Crowdsourcing definiowany jest jako akt w działalności organizacji, polegający na wydzieleniu pewnych funkcji, wykonywanych tradycyjnie przez pracowników, i ich outsourcing do bliżej niezdefiniowanej, dużej grupy osób, w formie otwartego zaproszenia. Crowdsourcing przyczynia się do rozwiązywania problemów, zarządzania kryzysowego, poszerzania oferty organizacji, kreowania wizerunku organizacji, usprawniania komunikacji z otoczeniem, optymalizacji kosztów działalności organizacji. Umożliwia także dostęp do zasobów wiedzy i kreatywności. Najczęściej wykorzystywany jest przez organizacje komercyjne, jednak od kilku lat dostrzega się, że jednostki samorządu terytorialnego sięgają po pomysły i wiedzę społeczności wirtualnych. Celem artykułu jest identyfikacja możliwości i ograniczeń wykorzystywania crowdsourcingu przez jednostki samorządu terytorialnego, ze szczególnym uwzględnieniem obszarów zastosowania w działaniach tych jednostek. Crowdsourcing is defined as an act of an institution taking a function once performed by employees and outsourcing it to an undefined, large group of people in the form of an open call. Crowdsourcing contributes to problem solving, crisis management, expanding an organisation's offer, creating the organisation's image, improving communication with the environment, optimising costs of the organisation’s activity. It also enables access to knowledge and creativity sources. It is most often used by commercial organisations; however, for the last few years it has been observed that local government units reach for ideas and knowledge of virtual communities. The aim of the article is to identify the possibilities and limitations of making use of crowdsourcing by local government units, with a particular inclusion of the areas of application in these units' actions.

In the analysis on a sample of 1166 respondents from a population of six European countries (seven regions), the subsample of 729 respondents employed in enterprises and subsample of 437 respondents employed in local administrative units were analysed. Analysis also covers subsamples of employees who are on the top, middle and lower level in management of an enterprise/local administrative unit. Each subsample is divided into six subsamples by region. In accordance with previously established objectives, methodological approach and given statistical hypothesis, differences were analysed in three chapters: among respondents from enterprises, local administrative unit and by level in management, compared to respondents' answers on individual values. With presented research and analysis, two statistical hypotheses were accepted: 1. There is a difference between companies, between local administrative units and between positions in management in relation to responses on individual values" and 2. There is a significant difference between companies, between local administrative units and between positions in management, with respect to certain characteristics (conformity, tradition, benevolence, universalism, self- direction, stimulation, hedonism, achievement, power, security), i.e. the individual responses of employees on individual values. The paper concludes that there are value profiles of employees in enterprises and local administrative units from different countries/regions, formed in relation to responses on individual values, that can be used for determining condition of human resources at the regional level and thus have potential impact on investments in human capital.

Coraz częściej od organizacji publicznych oczekuje się, że będą otwarte na otoczenie oraz innowacyjne. Wymusza to na nich konieczność zmian, co sprawia, że sięgają coraz częściej po rozwiązania dotychczas zarezerwowane tylko dla organizacji komercyjnych. W artykule podjęto próbę odpowiedzi na pytanie: jaki jest poziom orientacji strategicznej na otwarte innowacje jednostek samorządu terytorialnego? Na rzecz realizacji tak postawionego celu przeprowadzono studia literaturowe oraz badania empiryczne w wybranych w sposób celowy jednostkach samorządu terytorialnego. Wyniki przeprowadzonych badań wskazują na przeciętny poziom orientacji. It is more and more expected of public organisations that they will be open to their surroundings and innovative. This imposes on them the need for changes, which makes them reach more and more for solutions reserved so far only for commercial organisations. In the article an attempt was made to answer the following question: what is the level of strategic orientation on open innovations of local government units? In order to realise the goal set in this way literature studies and empirical research were conducted in purposefully chosen local government units. The results of the conducted research indicate a mediocre level of orientation.

Managing local government units in the 21st century faces new challenged connected to the conditions of knowledge-based economy. Currently the greatest approval is gained by the view which states that the ability to manage knowledge becomes a truly deciding factor for the efficiency of economic processes. In the conditions of globalisation, free capital flow and dynamic development of the capital market and new financial instruments, the LGUs are forced to seek new paradigms for finance management, such as will focus – to a greatest extent than before – on diffusing information and knowledge, developing competences of key significance for the LGUs, developing financial knowledge among LGU employees and supporting organisational learning

The study aims to examine the role that local government plays in ensuring the economic freedom. It briefly examines the status of local authorities, deliberative and executive, and also the powers that they have to create the conditions for the exercise of economic freedom. The study also examines the constitutional regime of this fundamental freedom which is part of the rights and freedoms of the first generation. The purpose of the research aimed both identifying the role of local government in ensuring this basic freedom but also to determine possible means of action to be considered by the government within the territory.

Systemic management of a local government unit lacks viewing the LGU as an economic entity which should actively use modern financial knowledge in its activity in order to stimulate active construction of an economic and social potential. It need’s to stimulate processes of building in local government structures a financial knowledge based on a modern understanding of LGU finance while considering the new challenges in finance which have been revealed after the subprime crisis, complemented with practical concepts based on New Public Management. Considering the progressing reforms of the national public finance system and the resulting consequences for shaping the financial management of the LGUs, and also globalization processes and the dynamic development of the financial services’ market, it is natural to require managers of the local government subsector of public finance to have thorough financial knowledge – current and interdisciplinary knowledge that would most importantly be reliable and practice-based.

The article is regarding the issue of the knowledge management at local government. It’s contents are focusing on the diagnosis in theoretical as well as practical perspective possibilities of managing decks of the knowledge in local government units. The subject brought up in this article is appealing for the experiment to transfer tools of both the attempt at the identification and the knowledge management in the private sector to the level of activities of the local government. This article constitutes this way the attempt to draw the improvements in the sphere of functioning of local government structures using layers like open and hidden knowledge for gain this goal and also putting appropriate approach at the management. Presented in this text approach, constitutes about the possibilities of improving the effectiveness of activities local government units by appealing to decks of knowledge local governments have.

The aim of the Bachelor thesis is to describe the specifics of the employment relationships of the officers of local governments units and state employees within the Czech republic. Apart from describing the current position of given workers, definition of the basic terms and legislation related to this issue, this thesis is concerned about the chronological changes of given issue since the formation of The Czech Republic as an independent state, i.e. since the 90's of 20. century. An important part of the thesis is apart from other the analysis of four chosen legal normatives, which relate closely to the issue. The most extensive part of the thesis is dedicated to these normatives and the changes they caused within the position of the officers of local governments units and state employees.

Decision making process is an everyday activity. However, special attention has to be payed when making decisions in public sector since those decisions result in long-term and costly consequences. Thus, ICT could improve the decision-making in public sector. The examples of ICT-supported decision making process in Croatian public sector are rare. The paper gives an overview of the successfully implemented ICT-supported decision making process in the Croatian local government units. The process was related to the project Ivanscica for better tomorrow which was supported by the European Commission. The aim of the project was to build the dialogue between the two local government units, City of Zlatar and City of Ivanec, in order to define strategic development activities for the mountain Ivanscica. Considering that the mountain is a part of two different local government units, when deciding about strategic directions and activities, it was decided to use ICT-supported AHP method. Calculations were made in both Excel and Expert Choice Trial. This application of ICT tools with multi criteria decision making method can also be a good starting point for new similar applications and possibly for the development of the methodology for decision making processes in government units.

The main objective of this paper is to examine the effectiveness of fiscal equalisation instruments in Croatia. Fiscal equalisation policy in Croatia is conducted through the personal income tax revenue sharing and the distribution of current grants from the central government budget to regional and local government units. However, the application of these instruments often relies on criteria that are not economic in nature. Therefore, this paper tests the hypothesis of the ineffectiveness of fiscal equalisation system in Croatia. The Gini coefficients are used to measure inequalities in fiscal capacities of local government units before and after the application of fiscal equalisation instruments. If the value of the Gini coefficient after the application of certain equalisation instrument is lower than before, that instrument is effective in alleviating fiscal inequalities and vice versa. It is found that the Croatian fiscal equalisation system mitigates local fiscal inequalities, but with the negligible effect.

In the thesis Analysis of economic non-profit organization is the main objective characterize the structure of financial resources and appropriate financial analysis to evaluate the level of economic development and selected non-profit organizations during the monitored period.Selected non-profit organization has become municipality Volyně and evaluation was made in the years 2009 - 2013. The first part of the thesis is based on a review of the literature on territorial self-governing units. How the local government units developed, how they arise and how the management system they have. The main financial instrument is the budget. The relatively sophisticated financial management components include financial analysis, which is also included in this part. Furthermore, in the literature review we find legislative adjustment municipalities. Those are the most important rules that territorial authorities act and make decisions. In conclusion literature review provides an overview of accounting and tax specifics, especially about the differences in the accounts of municipalities and the business community. The practical part is focused on the brief characteristics of the municipality and its history. Further description of the accounting system the municipality Volyně, and how municipality processes income and expenses on cash accounts. It also characterized municipal property, and an overview of grants processed as received and granted. Other part is focused on the economic analysis of the municipality. Approach to specific analyzes such as cost-benefit analysis, horizontal and vertical analysis and then financial analysis of selected indicators.

The study aims at showing the organizational and task-oriented aspects of competency in local government units. Within the theoretical part the authors deal with issues related to the organization of promotional activities and the impact of marketing communication on local development. In the research part the results of the analysis of organizational rules of county authorities and municipal authorities with county rights of the Lodz region were presented, displaying some practical ways to organize promotional activities. Common types of organizational units appointed in order to conduct promotions, their place in the structure of offices and the scope of their assigned competence were investigated. Among the units covered by the study there were in particular those responsible for marketing communication. Units of local government assign promotional competencies to organizational units resulting from the regulations of the law or the specifics of marketing communications. For all those activities that are not mandatory, significant differences which stem from having more discretionary powers of local governments can be observed, as well as the possibility of impact related to the level of development of a given unit. These possibilities are related to the type of unit (rural district, a town with a county status) population size and the level of income per capita. Only such units that achieve a high level of development can use a relatively broad and versatile range of tasks and promotional competencies.

Piotr Siuda

The aim of this paper is to propose a model of fiscal equalization in Croatia. This paper tests the hypothesis of a lack of effectiveness of the existing fiscal equalization model compared to a model that would be based on alleviating the difference in the potential to collect revenue from the personal income tax and surtax. Fiscal inequalities of local government units are determined first under the current equalization system by calculating the Gini coefficients and graphically presented with Lorenz curves. Thereafter, a distribution of equalization grants is simulated based on the new (proposed) model. The effectiveness of the proposed model in alleviating the fiscal inequalities is determined in relation to the effectiveness of the current equalization system. It was found that the model based on equalizing the difference in the capacity to collect revenue from the personal income tax and surtax alleviates inequalities in fiscal capacities of local government units much better than the existing system at the same cost. The main conclusion is that the fiscal equalization in Croatia should urgently be redesigned in order to improve efficiency and fairness, but also the transparency and credibility of the equalization system., Cilj rada je predložiti model fiskalnog izravnanja u Hrvatskoj. U radu se testira hipoteza o nedovoljnoj učinkovitosti postojećeg modela fiskalnog izravnanja u odnosu na model koji bi se temeljio na ublažavanju razlika u potencijalu prikupljanja prihoda od prireza i poreza na dohodak. Izračunom Ginijevih koeficijenata najprije se utvrđuju nejednakosti u raspodjeli fiskalnih kapaciteta po stanovniku jedinica lokalne samouprave u postojećem sustavu izravnanja koje se prikazuju i grafički Lorenzovim krivuljama. Potom se provodi simulacija raspodjele pomoći za fiskalno izravnanje na temelju novog (predloženog) modela te se testira njegova učinkovitost u ublažavanju fiskalnih nejednakosti. Utvrđeno je kako model utemeljen na ublažavanju razlika u kapacitetu prikupljanja prihoda od prireza i poreza na dohodak u znatno većoj mjeri od postojećeg sustava ublažava razlike u fiskalnim kapacitetima jedinica lokalne samouprave uz isti trošak. Zaključak je da fiskalno izravnanje u Hrvatskoj hitno treba restrukturirati kako bi se poboljšala učinkovitost i pravednost, ali i transparentnost i vjerodostojnost sustava izravnanja.

The State Audit Office's Report on Audit of Efficiency of Revenue Collection in Units of Local and Regional Self-government for 2010 and 2011 is currently in parliamentary procedure. The figure of HRK 8.6 billion in uncollected receivables suggests that local government units (LGUs) are inefficient in collecting their revenues. The cities of Bakar, Čakovec and Kutina, as well as municipalities Blato, Drnje, Đelekovec and Hlebine proved to be the most efficient in collecting revenues (receivables).

Local government units (LGU) are nowadays facing the very difficult and complicated task of making reasonable decisions regarding the transforming of SPZOZs into capital companies. First, it seems necessary to carry out a simulation of costs and advantages of the assumed models and solutions together with an analysis of advantages and disadvantages of the new legal and organisational forms. The aim of this paper is to assess whether the process of transforming SPZOZs into capital companies is purposeful and reasonable, and to define a way to prepare hospitals for functioning in an altered legislative environment. The paper draws attention to the fact that transformation itself does not guarantee that the results achieved by the given entity will automatically improve. The transformation can bring financial advantages for the newly created company and the local government, from the subsidies and remissions in accordance with art. 197 of the act on medical activity. Yet the conditions for getting such help are quite restrictive and not in every situation can financial help from the central budget be counted on. Such aid could help improve the financial standing of a hospital considerably. Also, it must be remembered that a hospital transformed into a capital company acquires the capacity to go bankrupt. If the new entity generates a loss, it may result in the owner having to raise the initial capital in order to avoid filing a bankruptcy petition by the company. In practice, the financial consequences for the local government are the same as in the case of having to cover losses. The difference lies in the continuity of the provided medical services.

Aktualne warunki funkcjonowania JST wymagają poszukiwania rozwiązań racjonalizujących koszty ich działalności. Prowadzone w nich działania usprawniające winny zatem być skierowane na poszukiwanie, adaptację i wykorzystanie instrumentów zapewniających sukces w tym obszarze. Jednym z takich rozwiązań są rachunki kosztów sprawdzone dotychczas w działalności organizacji komercyjnych - rachunek kosztów działań i rachunek kosztów docelowych. Szczególnie ten ostatni zapewnia sprawność JST, co realizowane jest poprzez ukierunkowanie na potrzeby interesariuszy tych organizacji. The current environment of LGU functioning requires seeking new solutions to rationalize the costs of their operations. Facilitation activities implemented in these organizations should therefore be targeted at seeking, adapting and utilizing the instruments which guarantee success in this area of their activity. Among such solutions, there are costing schemes which have already proved successful in the activities of commercial organizations − activity-based costing and target costing. The latter, in particular, will ensure the operating efficiency of LGUs through targeting the needs of these organizations’ stakeholders

Systemic management of a local government unit lacks viewing the LGU as an economic entity which should actively use modern financial knowledge in its activity in order to stimulate active construction of an economic and social potential. It needs to stimulate processes of building in local government structures a financial knowledge based on a modernunderstanding of LGU finance while considering the new challenges in finance which have been revealed after the subprime crisis, complemented with practical concepts based on New Public Management. Considering the progressing reforms of the national public finance system and the resulting consequences for shaping the financial management of the LGUs, and also globalisation processes and the dynamic development of the financial services' market, it is natural to require managers of the local government subsector of public finance to have thorough financial knowledge current and interdisciplinary knowledge that would most importantly be reliable and practice-based.

The article is regarding the issue of the knowledge management at local government. It's contents are focusing on the diagnosis in theoretical as well as practical perspective possibilities of managing decks of the knowledge in local government units. The subject brought up in this article is appealing for the experiment to transfer tools of both the attempt at the identification and the knowledge management in the private sector to the level of activities of the local government. This article constitutes this way the attempt to draw the improvements in the sphere of functioning of local government structures using layers like open and hidden knowledge for gain this goal and also putting appropriate approach at the management. Presented in this text approach, constitutes about the possibilities of improving the effectiveness of activities local government units by appealing to decks of knowledge local governments have.

The objective of this paper is to determine possible indicators that affect local unit credit risk and investigate their effect on default (credit risk) of local government units in Croatia. No system for the estimation of local unit credit risk has been established in Croatia so far causing many practical problems in local unit borrowing. Because of the specifi c nature of the operations of local government units and legislation that does not allow local government units to go into bankruptcy, conventional methods for estimating credit risk are not applicable, and the set of standard potential determinants of credit risk has to be expanded with new indicators. Thus in the paper, in addition to the usual determinants of credit risk, the hypothesis of the infl uence of political factors on local unit credit risk in Croatia is also tested out, with the use of a Tobit model. Results of econometric analysis show that credit risk of local government units in Croatia is affected by the political structure of local government, the proportion of income tax and surtax in operating revenue, the ratio of net operating balance, net fi nancial liabilities and direct debt to operating revenue, as well as the ratio of debt repayment and cash, and direct debt and operating revenue.

The activity of local government units requires them to constantly deepen the financial knowledge and competence of their employees. This article presents review of current trends in shaping financial knowledge of local government units in Poland. The first part of this paper shows trends concerning sources of gaining financial knowledge. The second part shows the most interesting areas of financial knowledge. The third part contains the review of the most popular financial knowledge sharing methods.

Monopoly ownership decentralization as a brake current direction of development of local governments not only here but also in the world. Decentralization is possible only with the deconstruction of ownership of monopolies, in a way that basically provides for the Bill on public property, property and other property rights of Serbia, autonomous provinces and local self-government, which is 31 12th The 2009th The came to the Parliament with the request that such acts discussed urgently. In domestic law is not resolved the issue of property of local governments. The forthcoming legislation stipulates that municipalities, public enterprises and autonomous province and get the property that is now state property for free use, lease, collect all revenues, taxes and borrow. Local governments will gain economic independence, their own sources of funds, their right to property constituted property that is now used. Taking and managing its property, local governments will be able to become important players in the economic market.

The objective of this paper is to present the financial operations of the local government- owned utility firms in Croatia and to draw attention to the problems of liquidity and high liabilities in some counties, problems that are capable of bringing about a rise in the prices of local public services. This preliminary analysis is based on data from the financial reports (profit and loss accounts and balance sheets) of the utility firms that in 2008 and 2009 were published by the Financial Agency. Population estimates were drawn from figures of the Croatian Bureau of Statistics. It has been assumed that the utility firms have presented the data in the financial reports truthfully.

Local Government Units (LGU) play a critical role in the management of resources within their jurisdiction. Our collaborative work with SANREM/seeks to understand better the methodological, institutional and policy hurdles impinging the success of local natural resource management. The experience started in Lantapan in phase 1 of SANREM, with the aim to better integrate environmental knowledge in planning and decision-making at the watershed level. SANREM supported an LGU-led planning process for the development of a five-year Municipal Natural Resource Management and Development Plan (NRMDP). The NRMDP was recognized as a national model for locally led and research-based NRM planning by the Philippines' National Strategy for Watershed Management. Inspired by the Lantapan experience, a scaling-up process was pursued in four municipalities in northern Bukidnon. We concluded that there are socio-political and technical factors affecting the sustainability of local NRM. Four sustainability factors to successful NRM emerged from our study. These are: clear local financial investment, enhanced local technical capacity, sound political culture conducive to NRM, and a supporting National Mandate. To ensure that these conditions are met will require pressures for a virtual overhaul of programmatic areas of effective governance, as well as, setting a national level policy direction, and local level enforcement of such policies. We aim to translate these factors into policy statements communicated at the national level for wider impacts.

The "Water Resource Management and Education" work plan of the SANREM/Southeast Asia program was designed to facilitate the development of community-based water monitoring teams who could collect credible data on a regular basis and thus understand watershed trends. The community now has multi-year trend data on such things as bacteriological concentrations in rivers and drinking water supplies, stream discharge and sediment yield estimates. Thousands of samples collected by volunteers have provided a large amount of water information that would not otherwise be available because of limited assessments made by governmental or private agencies. The monitors are aware of what their information implies and they are influencing policy and community action in the Manupali River watershed and beyond. This paper will focus on the cost-effectiveness, reliability and value of community-based monitoring programs when they are implemented in technically sound and participatory ways.

Metadata only record Three factors are increasingly fundamental to successful natural resource management in the uplands. First, there is a need for improved land husbandry practices that enable farmers to sustain food production on sloping lands. Such practices would help farmers change gradually from a monoculture system to mixed tree, crop and/or livestock-based systems that provide increased income and environmental protection. Second, there must be real and effective participation by the rural population, through their own local institutions, in the decisions that impinge upon their livelihoods. Third, there must be an effective partnership among service providers and stakeholders. This paper describes the evolution of Landcare, a farmer-led movement in the Philippines that has emerged as an approach to successful natural resource management in the uplands.

The main goal of the paper is to determine opportunities for the application of analytical tools to improve the management of state and local finances and increase the accountability and trust of citizens in state and local self-government units. PEFA is a useful tool for meeting such goals. PEFA is used on a global scale, primarily in countries that are beneficiaries of international aid, but also increasingly in countries that seek to increase their international credibility as well as their credibility regarding financial management in the eyes of their citizens. In the case of Croatia, PEFA was used in four cities in 2014. The implementation experience shows that PEFA allowed local government units to detect key weaknesses and technical shortcomings in their financial management, as well as to recognize the shortcomings of the provisions of certain regulations implemented at central government level. PEFA is an analytical tool that can be applied both at the national (central government) level and at the level of local self-government units. PEFA is certainly a demanding analytical tool which makes previous knowledge on financial management, budget accounting, and auditing more than desirable. For all European countries likely to join the European Union and finance part of their capital investments through EU funds, PEFA can be a very useful tool not only for the early recognition of weaknesses, but also strengths in financial management. Despite the fact that PEFA does not offer direct instructions on how to solve potential problems in financial management, the findings of the analysis with the accompanying rankings are more than sufficient to serve as recommendations for addressing weaknesses in financial management. The implementation of PEFA requires strong support of the heads of local units and the state. These are also the people expected to initiate reforms and improve financial management. As an analytical tool, PEFA can help these improvements happen much faster and more effectively.