The importance of higher education is unavoidable in the development of a modern state, as well as its progress and well-being, including: the preparation of students for active citizenry and a future career, giving support towards their personal development, creating a wide base of advanced knowledge while encouraging scientific work and innovations as one of the key factors of social and economic growth of every state, including Croatia. In The Republic of Croatia higher education is primarily financed from the state budget. By implementing three laws that make up a whole: The Law on Internal Control in The Public Sector and The Fiscal Responsibility Law, The Republic of Croatia has established the foundations for assembling The Declaration of Fiscal Responsibility with which the head of office confirms: 1) The lawful, intentional and purposeful use of funds 2) The efficient and effective functioning of a system of financial management and control within the budget, also known as the financial plan of established funds. Accounting in the function of financial management and fiscal responsibility of higher education institutes, is tasked with exploring the position and role of the accounting system of budgets in the context of establishing good financial management and the monitoring of the scope of fiscal responsibility, using The Law Faculty in Rijeka as a model. Accounting information and its quality is especially important when it comes to conducting the procedures of assembling and handover of The Fiscal Responsibility Questionnaire, The Declaration of Fiscal Responsibility, The Plan of Eliminating Weaknesses and Irregularities and The Report on Eliminated Weaknesses and Irregularities. Analysis and grade, when it comes to the question of whether The Law Faculty in Rijeka’s use of funds from the financial plan is intentional, purposeful and in accordance to the law; that is to what extent does it satisfy law-defined criteria of good financial management and fiscal responsibility, is obtained based on conducted theoretical and empirical research presented in this paper.