Abstract
The study “Employees' Understanding of Institutional Planning by Implementing the Internal Control System in the Municipality” provides a brief summary of the implementation of the internal control system in public administration, highlighting the differences that distinguish the assessment of public administration performance compared to business. The paper analyzes the element of the internal control system “Institutional activity planning” referred to the regulations of the Cabinet of Ministers “Regulations on the internal control system in a direct administration institution” and analyzes the situation in Priekuli Municipality, evaluating compliance with this element. Questionnaires of municipal employees have been conducted with the aim to find out the understanding of the implementation of the ICS element “Institutional activity planning” and compliance with this element, identifying areas where improvement is needed.
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