The management of health care institutions as beneficiaries of budget funds and budgetary accounting differs from companies whose main goal is to make profit and who are liable to the Accounting Law. Health institutions are obliged to maintain business books and prepare financial statements according to financial reporting regulations in the budget accounting. They need to respect the Budget Law (Official Gazette 87/08, 136/12 and 15/15), the Rulebook on Budgetary Accounting and the Accounting Plan (Official Gazette 124/14, 115/15, 87/16 and 3/18) and The Rulebook on Financial Reporting in Budgetary Accounting (Official Gazette 3/15, 93/15, 135/15, 2/17 and 28/17). The following financial statements are required to be compiled: Statement of Income and Expenditures, Receipts and Expenditures, Statement of Expenditures by Function Classification, Balance Sheet, Statement of Changes in Value and Amount of Assets and Liabilities, Statement of Obligations and Notes. The financial statements are submitted to the Data Processing Authority and to the State Audit Office by the end of January of the current year for the previous year. The specifics of the financial reporting of health institutions are presented in the example of the Special Medical Hospital for Rehabilitation Lipik.