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In the next period, the directors of public companies will have to present to the Government detailed bills on expenses, business trips, sponsorships, employment … Every dinar that public companies receive from the budget will be under scrutiny, as well as the rest of income and expenses. In addition, the directors must show how they spent the earnings for 2014, 2015, 2016, 2017, 2018 and 2019, but also explain each dinar of the loan taken.
The Serbian Government has passed a Decree asking the directors of public companies to accurately present their activities for the coming year, that is, for the three-year period 2021-2023. years. According to the official document, they will have to explain their business in detail to the Government and indicate precisely how they will spend the money, both in investments and in representation.
They will also have to determine precise objectives for the next period, the channels through which they will make profits, but also the ways to verify their fulfillment.
The application list also includes information on job openings, gender and age structure of employees, applications for new jobs and plans to hire new people.
This regulation refers to, among others, “Serbian Railways”, “Serbian Roads”, “Srbijagas”, “Serbian Post”, “Srbijasume” and other public companies.
Rational with business trips and sponsorships
In addition to the regular and customary requirements on the status of finances, income, goals, and anticipated cash flows, directors should explain in detail anticipated public acquisitions, sponsorship or gift funds, and various contracted payments .
While the coronavirus pandemic has significantly reduced business travel, it is important that the Regulation stipulates that funds for this purpose, as well as for various fees, professional training, etc., public companies can plan up to the level of funds for 2020 with, as said, “prior consideration of possibilities for its rationalization”.
The situation is similar with funds for special purposes: sponsorships, donations, humanitarian activities, sports activities, representation, publicity and propaganda. And its directors have to plan at the level for 2020.
In addition, the Regulation establishes that public companies that use budget funds to finance current operations (salaries, material costs, etc.), as well as public companies that have operated at a loss according to the last published financial report, cannot plan funds for sponsorship. and donations “.
Under scrutiny and acquisitions
It is especially emphasized that the acquisition of official vehicles must be rationally planned, indicating the type, the basic characteristics of the vehicle, the estimated value of the acquisition, as well as the explanation of why the acquisition is necessary.
Administrators of public companies will have to carefully plan investments, because they will be obliged to show the government the dynamics of investments, but also to justify the delays so far. It is necessary to present both the business risks and the risk management plan, and the activities that the public company plans to carry out to improve corporate governance are also mandatory.
Within the objectives and activities planned for 2021, that is, the period 2021-2023. year, the directors should present the objectives of the public company for this period, the key activities to achieve them, but also the market and competition analysis, the sales plan and the improvement of the marketing strategy.
Profit
Public companies must also show the planned method of profit distribution, that is, the method planned to cover losses, when necessary. The decree stipulates that the distribution of the estimated profit for 2020 is planned according to the budget law of the Republic of Serbia, the autonomous province or the local self-government unit for 2021.
Recruitment
Within the salary and employment plan, it is necessary to show the number of employees by sectors, qualification, age structure and gender of employees, and public companies must present credit indebtedness, as well as the acquisitions of goods, works and services planned for 2021 and 2021-2023. . with a detailed explanation.
Minister Siniša Mali revealed his position in the new government this morning.
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