New Budgetary Reporting Requirements: What Changes in 2025 and 2026?

In mid-October, a public consultation was launched on the proposed amendments to the Ordinance on Financial Reporting in Budgetary Accounting. The draft introduces several important changes that will directly affect budgetary and extra-budgetary users, particularly those involved in EU-funded projects, starting in 2025 and 2026.

The proposed amendments aim to improve transparency, standardisation, and oversight of public finances—especially when it comes to tracking EU funds and national co-financing.

Below is an overview of the key changes you should be aware of.

Introduction of a New “EU Report” Form

The most significant novelty is the introduction of a new mandatory reporting form – the “EU Report”.

This form provides an analytical overview of financial data related to EU-funded projects, including:

• revenues and receipts from EU funds and national co-financing,
• expenditures, outlays, and collected amounts related to those funds,
• the status of receivables and liabilities at the beginning and end of each reporting period.

The goal of the new EU Report is to ensure clear, structured, and comparable data on how EU funds are used within the budgetary system.

Mandatory Part of Financial Reporting from 2025

Once introduced, the EU Report will become an integral part of regular financial reporting.

Key obligations include:

• the report must be prepared for each accounting period,
• the first submission will apply to the period from 1 January to 31 December 2025.

This means that institutions involved in EU-funded projects should begin adjusting their internal accounting and reporting processes well in advance.

Extended Deadlines for Submitting Financial Reports

The draft amendments also propose extended deadlines for submitting certain financial reports, providing additional time for preparation and verification:

• quarterly, semi-annual, and nine-month reports: deadline extended from 10 to 15 days,
• consolidated financial reports: deadline extended from 20 to 25 days, depending on the competent authority.

These changes aim to improve reporting quality while reducing administrative pressure on reporting entities.

New Balance Sheet and Reference Page

Further structural changes are planned for financial reporting formats:

• a new balance sheet form will apply as of 31 December 2026,
• the reference page of financial reports will also be amended accordingly.

Although these changes take effect later, early awareness is crucial for long-term planning and system alignment.

Electronic Submission and Audit Compliance

Another important clarification relates to report submission and audit obligations.

Financial reports will continue to be submitted electronically to the Ministry of Finance.
Importantly, this electronic submission will also be considered official submission to the State Audit Office, eliminating the need for separate delivery.

This step further simplifies procedures and strengthens coordination between institutions.

How to Prepare?

Given the scope of the proposed changes—especially the new EU Report—timely preparation will be key. Budgetary users involved in EU-funded projects should:

• review internal accounting procedures,
• align data tracking with the new analytical requirements,
• ensure staff are informed and trained ahead of the first reporting period in 2025.

Need Support?

For professional support in preparing, adapting, and submitting financial reports, including EU-funded project reporting, feel free to contact the brandom team: office@brandom.hr

We help organisations stay compliant, accurate, and ready for upcoming regulatory changes.