THE ROLE OF CONTROLING IN THE PUBLIC SECTOR

Abstract

Controlling is a modern management concept and decision-support system encompassing planning, reporting, control, analysis, and information provision within an organization. It coordinates information flows and activities to ensure long-term efficiency and the achievement of organizational goals. Unlike traditional control—which is past-oriented, focuses on financial discipline, and reports on the fulfillment of planned targets—controlling is future-oriented; it focuses on cost optimization and the preventive correction of deviations, thereby assisting management in making sound decisions. In the context of public administration and public finance, controlling within the public sector can be viewed as an institutional component of the sector itself. This approach allows for the identification of factors influencing the organization of public-sector controlling, the definition of its goals and characteristics regarding the strategic planning of various sector organizations, and the delineation of controlling areas within the scope of internal and external oversight of state bodies that manage budget funds. The aim is to determine the feasibility of utilizing financial controlling mechanisms within budgetary organizations as an innovative method of financial management. A controlling mechanism can be developed and implemented to encompass goals and objectives, functions, subjects and objects, regulatory and methodological frameworks, information support, and specific instruments. The essence of the elements of the financial controlling mechanism is defined, outlining the key stages of implementing a financial controlling system within public sector organizations