Public Finance, Budgeting and Public Procurement Rules
Public finance and budgeting
Candidates must understand the budget process: preparation, adoption, execution, accounting and reporting, and control. Key concepts: the consolidated fiscal programme, medium-term budget forecast, programme budgeting, commitment accounting, cash limits, and the distinction between budget appropriations and actual expenditure. The Public Financial Management Act governs budget planning, execution and control, and the accountability of spending officers. Internal auditors assess compliance, value for money and the reliability of financial reporting.
Public procurement
Public procurement follows the Public Procurement Act (Закон за обществените поръчки), aligned with EU directives. Candidates must know the thresholds, the distinction between open, restricted, negotiated and competitive dialogue procedures, framework agreements, the rules on dividing contracts to avoid thresholds (unlawful splitting), grounds for exclusion, evaluation criteria (lowest price or most economically advantageous tender), contract award, and the standstill and appeal rules. Internal auditors test compliance with procedure, transparency, equal treatment and proportionality.
Traps
A frequent trap is confusing the national thresholds with EU thresholds, or assuming that below-threshold purchases are unregulated - they still require internal rules and transparency. Another trap: treating the lowest price as always required - the most economically advantageous tender is permitted where criteria are objective and linked to the subject matter.
Rule of thumb
For procurement questions, check four things: correct procedure for the value, published notice, objective award criteria, and no unlawful splitting of the contract.
Worked example
A municipality divides a €200,000 supply contract into three €65,000 contracts to stay below a threshold. This is unlawful splitting; the auditor reports a compliance finding and a value-for-money risk.