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The defence of country is demanded, but as far as monetary resources are concerned (the effectiveness of which is mostly not transparent), the civilian public takes them as a mistake, as superfluous expenditures. The military economy is an interdisciplinary branch of knowledge, it is a broad subject that can?t be reduced for mere controlling expenses. Still, it is very difficult to assess its recoverability, in comparison with its importance for state defence.

Defence system is effective as far as economy is concerned only when target function is met with the minimal overall costs. It is the opening motto to the study by university economy teacher Mr. Krč, Defence University Brno. He concentrates on the so-called outsourcing, both its strong points and drawbacks, audited account, managerial transaction costs, controlling. The outsourcing is a combination of economic, technological, organizational and humane aspects.

The very modern trends in the forces of advanced countries are hiring private civilian companies, private enterprises, in everyday performance of armed forces. As this phenomenon is very frequent, the authors decided to go into its roots, to find a common cause of this fact. In the past, armies were closed societies, self-sufficient, independent from states. Today, gradually, soldiers became more concentrated on key military tasks and supporting functions are transferred to private companies. The German Armed Forces (Bundeswehr) takes over mechanics used in private sector: it integrates economy dimension. Above all, it is transparency of bookkeeping, which ought to give evidence on savings in everyday life of forces. The Bundeswehr uses the so-called Market Testing, as a means of practical cooperation for engaging private capital. All those fact are cited as thoughprovoking.

In recent history, German armed forces have been transformed into a modern, international recognized force, so has its logistics. Readiness became a major issue and soldiers suddenly had to be prepared for a broad variety of international missions, predictably supported by military logistics that newly cooperates with a private sector. The main logistics control and management centre is situated in the port city Wilhelmshaven. The Centre is responsible for planning logistics operations, their coordination both home and abroad. The newly created department for supply chain management is going to streamline supplies, to increase efficiency of the whole supply process. By means of several schemes the authors explain flows of materiel and supply routes tied with civilian companies (e.g. HIL GmbH).

The administrative culture is something like "mind set" of "software" of organization, its philosophy, a part of which is the so-called economization. The process of economization of defence sphere will lead to further decrease in numbers, cutting down redundant materiel, supplies. Such economy measures should produce savings in terms of hundred millions Czech crowns, side by side with the increased potential of the whole military organization. The authors introduce Activities in Defence Sector the CAF model (Common Assessment Framework), based upon the Model Excellence of the European Foundation for Quality Management, expressed by the following formula: factors involved equals personnel times activities (education) times facilities (investments). There are some similarities between army management and business administration, so the economy instructions ought to be part of overall military education and training.

Mentioned Balanced Scoredcard-BSC is an ef f icient tool that helps to the of f icial management to transform vision and strategy into reality, by means of monitoring key efficiency indicators and their transformation into action plans: BSC covers the package of strategy maps enabling to consider mutual connections. Owning to the transparency cause-consequence relation, we can implement cohesive strategy into all level of the organization.

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization to accomplish its objectives by bringing a systematic, disciplined approach, so that we are able to evaluate and improve the effectiveness of risk management, command and control, or other processes. Internal auditing is a tool of Ministry of Defence management that is used for increasing effectiveness both in departmental and public sector administration. The article is supplemented by two schemes of the position of audition authorities within the Slovak MoD.

Economy of production, economies to scale, in civilian sector are quite different than economy pattern in defence sphere, as specifying the allocation of sources for the Army of the Czech Republic is not based on exact calculation of costing, payments as we could not observe the substantial terms of comparable partial and overall expenses. At present, we are not fully able to compare defence outputs, nor effecitivity of spent sources.

Using the example of medium-term planning of development and activities of defence department, the article demonstrates one of possible ways of using the so-called 3E methods. The Czech def inition of 3E is based upon the Act on Financial Control, Control of Public Expenditures, Regulation ISO 9001-2001, and Methodical Instruction MF CR (CHJ- 10). The author compares them with e.g. Financial Management Policy Manual JSP 462, MoD, London, UK.