PHARE EDIS APPLICATION CONTENTS 1.INSTITUTIONAL SETUPINSTITUTIONAL SETUP 2.ORGANIGRAMS OF THE INSTITUTIONS INVOLVEDORGANIGRAMS OF THE INSTITUTIONS INVOLVED

PHARE EDIS APPLICATIONPHARE EDIS APPLICATION

CONTENTS

1. INSTITUTIONAL SETUP

2. ORGANIGRAMS OF THE INSTITUTIONS INVOLVED

3. CONTRACTING PROCEDURES

4. PAYMENT AND ACCOUNTING PROCEDURES

5. MONITORING AND EVALUATION

6. INTERNAL AUDIT

7. PUBLIC INTERNAL FINANCIAL CONTROL

8. IMPLEMENTATION OF THE ROADMAP STAGES

9. PROCUREMENT-TRANSITION FROM PRAG TO EU DIRECTIVES 2

1. INSTITUTIONAL SETUP

3

Programme Authorising Officer - PAO

CFCU

Implementing Agency

Tendering, Contracting and Payments

Senior Programme Officers - SPOs

Technical implementation

European Commission

DG Enlargement

National Aid Coordinator – NAC

Aid Coordination Unit

Office of the Government of the SR

Planning, Programming

Monitoring, Evaluation

National Authorising Officer- NAO

National Fund

Ministry of Finance

Overall responsibility for financial management of PHARE funds


Regional Development Support Agency

Implementing Agency

Tendering, Contracting, Payments, Technical implementation


National Agency for Development of Small and Medium Size Enterprises

Implementing Agency

Tendering, Contracting, Payments, Technical

Implementation

4





MAIN ACTORS (1)

• The National Aid Coordinator is responsible for coordination (especially in programming phase) and monitoring of the PHARE Programme

• National Authorizing Officer is responsible for financial management of PHARE Programme

• The Implementing Agencies are in charge of implementing of signed PHARE Financial Memoranda

• Supreme Audit Office (SAO) is an independent governmental agency bound only by the Act No.559/2001 Coll. For the purposes of this Act, funds of the EC shall also be regarded as state budgetary funds. The Office shall audit the management in accordance with the Act. Office is Certification body for SAPARD and will be responsible for winding -up in case of Structural Funds.

5

MAIN ACTORS (2)

• Responsibilities of relevant bodies are specified more in detail in The Memorandum of Understanding on Establishment of the National Fund between the Government of the Slovak Republic and Commission of European Communities (signed in December 1998)

6

Regulatory Framework System for the Supreme Audit Office Audit

Activities

7

Constitution of the Slovak Republic

SAO SR ActNo. 39/1993 Coll.

As amended

Rules for Auditing Activities within the

Supreme Audit Office of the Slovak Republic

SAO SR Auditing Standards based on internationally

accepted audit. standardsINTOSAI and IFAC

Manual XY Manual XY Manual XY Manual XY etc.

Organisational Chart of the Supreme Audit Office of the Slovak Republic

Secretariat

Internal control

Spokesman

Personal and Salaries Department

IT Department

Financial Department

Training Centre in Bojnice

Economic Department

Department of Foreign Relations

Legal and Methodical Department

Secretary

State Revenue department

Department of State Expenditure

Department of State Property Administration

Secretary

State Revenue Department

Department of State Expenditure

Department of State Property Administration

Regional Office in Kosice

Secretary

Secretary

Department of Non-Tax Revenues

Financial Department

Department of State Budget

Analytical Department

Financial Section

Secretary

Department of Interior

Defence Department

Department of State Offices

Department of Foreign Affaires

Section of Defence and Interior

Secretary

Department of Direct Taxes

Department of Indirect Taxes

Department of Custom Duties

Section of Tax and Customs

V i c e - P r e s i d e n t

Secretary

EU Funds Audit Department

Secretary

Department of Economy

Department of Transport, Postal Services and Telecommunication

Department of Agriculture

Department of Environment

Section of Economic Sectors and Environment

Secretary

Department of State Property Transformation

Department of State Property Administration in Selected Sectors

Department of Social Affairs

Section of Transformation and Administration

Secretary

Department of Healthcare

Department of Education and Science

Department of Culture and Mass Media

Section of Public Consumption

V i c e - P r e s i d e n t

P r e s i d e n t

Regional Office in Banska Bystrica

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2. ORGANIGRAMS OF THE INSTITUTIONS

INVOLVED

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2.1. ORGANIGRAM OF THE NATIONAL AID CO-ORDINATOR

(NAC)

10

11

Pre-accession instrument PHARE

and Transition Facility Division

Pre-accession instrument PHARE

and Transition Facility Division

Section for European AffairsMr. Ladislav Setnický - Director General

Section for European AffairsMr. Ladislav Setnický - Director General

Communication Strategy Department

Communication Strategy Department

Aid Co-ordination Unit Department

Mr. Ivan Fecenko -Director

Aid Co-ordination Unit Department

Mr. Ivan Fecenko -Director

European Affairs Department

European Affairs Department

Regional Policy and Structural Actions

Department

Regional Policy and Structural Actions

Department

National Aid Co-ordinatorMr. Pál Csáky

Deputy Prime Minister for European Integration, Human Rights and Minorities

National Aid Co-ordinatorMr. Pál Csáky

Deputy Prime Minister for European Integration, Human Rights and Minorities

Monitoring and Evaluation Cell

(Division)

Monitoring and Evaluation Cell

(Division)

ISPA and SAPARD

Division

ISPA and SAPARD

Division

Bilateraland Multilateral

Programmes Division

Bilateraland Multilateral

Programmes Division

SecretarySecretary

Mr. M. PetroMs. K. ČajkováMs. I. FáberováMs. D KútyováMs. M. MolnárováMs. M. SvitkováMs. J Minarovičová

Mr. M. PetroMs. K. ČajkováMs. I. FáberováMs. D KútyováMs. M. MolnárováMs. M. SvitkováMs. J Minarovičová

Mr. M. OrthMr. R. OndrejkovičMr. M. OrthMr. R. Ondrejkovič

Ms. M. ŠteliarováMs. M. BerováMs. M. ŠteliarováMs. M. Berová

2.2. ORGANIGRAM OF THE NATIONAL AUTHORISING OFFICER (NAO)

12

13

MINISTER

General Administration Section

Head of the Office

State SecretaryNAO

State Treasury Project Dpt

Internal Audit Unit

State Secretary

CFCU

Financ. Control & Internal Audit Methodology Unit

Ministerial Office

Financial Policy Institute

International Financial & Economic Org. Dpt

Personnel & Org. Aministr. Dpt

Taxes and Customs Section

Budget Policy Section

Public Expenditure Section

European Affairs Section

Financial Market Section

Legislation & Ownership Rights Section

Economic Department

IT Department

Economic Administr. Department

Separate Sub-Dpt for Procurement

State BudgetDepartment

Public BudgetsDepartment

Public Administr.Employment Financing Dpt.

Non-profit Sector Financing Department

Regional Offices Chapters Budgeting & Financing Dpt

Financing of Regional Self-govern.Department

Entrepreneurs Financing Dpt

Coordination of Relations with EU Dpt.

National Fund Department

Paying Authority for Struct. Funds Department

Department of Total Financial Relations to the EC Budget

Internal ControlDpt

Financial Control Dpt

Tax & Customs Administration Supervision Dpt

State Supervision Dpt.

Capital Market & Insur. Dpt.

Bank & Exchange Relations Dpt.

Supervision on Special. Fin. Market Institut. Dpt

Legislation & Methodology of Tax Administr.

Income Taxes Department

Indirect Taxes Department

Property, Road Taxes & Fees Department

International Tax Relations Department

Customs Department

Legislation Department

Property & Restitutions Department

International Legal Relations Dpt

Property Administration Dpt

State Closing Account Dpt.

Accounting Methodology Dpt

State Debt Management Dpt

State Closing Acc., Debt & Accounting Section

Price Department

Control Section

Financial control of EC funds dept.

NATIONAL FUND

Financial Control and Internal Audit Methodology Unit

BUDGET POLICY SECTION

STATE CLOSING ACCOUNT, DEBT AND ACCOUNTING CONTROL SECTION

CONTROL SECTION

Internal Control Department

Financial Control of EC Funds Department

GENERAL ADMINISTRATION SECTION

IT Department

Internal Audit Unit

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HEAD OF THE OFFICE

Personnel and Organizational Department

National Fund Director Ms. Ľubica Slimáková

Head of PHARE Unit Ms. Petra Pazerini

ISPA and Cohesion Fund

Unit

SAPARD Unit Head of Accounting Unit Ms. Lýdia Mrvová

Quality Assurance Manager

Mr. Milan Gajdoš

Deputy NAOMs. Mária Kompišová

Ms. Anna Fričová Mr. Peter Bagin Ms. Silvia Vyrvová Mr. Martin Mojžiš Mr. Juraj Okál Mr. Ján Podhorský

Certifier of Expenditure for

ISPA/CF

National Authorizing Officer (NAO)

Mr. Vladimír Tvaroška

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2.3. ORGANIGRAM OF THE CENTRAL FINANCE AND CONTRACTING UNIT

(CFCU)

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CFCU

EUROPEAN AFFAIRS SECTION

National Fund

Financial Control and Internal Audit Methodology Unit

BUDGET POLICY SECTION

STATE CLOSING ACCOUNT, DEBT AND ACCOUNTING CONTROL SECTION

CONTROL SECTION

Internal Control Department

Financial Control of EC Funds Department

Internal Audit Unit

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GENERAL ADMINISTRATION SECTION

IT Department

HEAD OF THE OFFICE

Personnel and Organizational Department

Director&

Programme Authorising Officer (PAO)

Secretaries (2)

Ms. Silvia Czuczorová

1. Ms. Sylvia Szabóová2. (position not yet filled)

Project Managers (9)

1. Ms. Daniela Migrová2. Ms. Anna Oszlányiová3. Ms. Veronika Konická4. Ms. Martina Galabová5. Ms. Zuzana Olšová6. Mr. Miroslav Papuščák7. Ms. Tatiana Christovová8. Mr. Boris Bujalka (external expert)9. (position not yet filled)

PM1 PM2 PM3 PM4 PM5 PM6 PM7 PM9PM8

Financial Manager Accountant

Ms. Zora Pauliková

1. Ms. Denisa Horváthová2. Ms. Petra Balcová

SFM FMA FM1 FM2

Senior Financial Officer

Financial Managers (2)

Ms. Marta Horváthová

Tendering and Contracting Unit Financial Unit

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Ex-Ante Approval Unit

2.4. ORGANIGRAM OF THE REGIONAL DEVELOPMENT SUPPORT AGENCY

(RDSA)

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20

Organisational structure of the Ministry of Construction and Regional Development

720

730

Minister

State Secretary I Head of service office State Secretary II

Minister´s office

Control department

Personal office

Budget and financingdepartment

Science and technologydepartment

Internal audit unit

Housing policy section

Housing policy conceptdepartment

Housing economydepartment

Civil constructionsection

Civil constructiondepartment

Legislative-legal department

Economic administrationdepartment

EU assistance managementsection

Management department forCSF

Management department forSPD

Cohesion Fund managementand co-ordination department

Crisis managem.department

Indipen. division ofinformatics

Indepen. division oftransformation

European integrationdepartment

Region. develop.strategy department

Region. develop.programmes

Region. develop.managementdepartment

Public worksdepartment

Regional DevelopmentSupport Agency

Implementation department

Financial. managementdepartment

Agency control department

Department for managementof the OP BI

INTERREG A managementdepartment

Constr. productsconformityattestationdepartment

Regional policysection

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General Director - PAO Mr. Július Slovák

Mrs. Alžbeta Voleková - Secretary

Organisational structure of the RDSA

Department for Management of the OP BI

Director of the DepartmentMrs. Eva Hrčková

Mrs. Vladimíra Olléová

Mr. Tomáš Štálnik

Mrs. Andrea Rajčáková

Mrs. Silvia Fehérová

Mrs. Zuzana Nedbalová

Mr. Radoslav Behul

INTERREG A Management Department

Director of the DepartmentMr. Pavel Holík

Mr. Milan Gál

Mrs. Eva Ďurišová

Mr. Ján Bicko

Mr. Peter Polyak

Financial Management Department Agency Control Department (also ex-ante approval)

Director of the DepartmentMrs. Dagmar Skačková, MBA,

SAO

Not occupied

Mrs. Dana DragulováAccount Administrator

Mrs. Janka PiliarováPayment Administrator

Mr. Juraj JuhászEx-ante Controlor

Mrs. Lucia Kozlová - Secretary

Director of the DepartmentMrs. Zuzana Andrássy

Deputy PAO

Mr. Peter ŠuchaControl Manager for ECOSOC

Mrs. Vladimíra VišackáControl Manager, JSPF+grants

grantsMrs. Annamária Mačurová

Legal Control Manager

Mr. František BilčíkControl Manager for CBC

Mrs. Karin Susková - Secretary

Implementation Department

Director of the DepartmentMrs. Alena Šoltysová

Mrs. Anna PolnišerováHead of CBC Division

Mr. Ján JambrichIT Manager

Mr. Jozef KelbelHead of ECOSOC Division

Mrs. Melinda JančaričováHead of JSPF Division

Mr. Juraj KrecháčProject Manager for CBC

Mrs. Georgína PódováProject Manager for JSPF

Mrs. Beatrix BárányováProject Manager for JSPF

Mr. Valentín MagdolenProject Manager for CBC

Mr. Drahomír RešetaProject Manager for ECOSOC

Mrs. Lucia GallováProject Manager for JSPF

Mr. Marián MéryProject Manager for CBC

Not occupied

Mrs. Mária Idelbeková - Secretary

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Organisation frame structure of the RDSA


General Director

Secretary

Financial ManagementDepartment(FMD)

INTERREG A ManagementDepartment

ImplementationDepartment

(ID)

Grant SchemeDivision

PHAREECOSOCDivision

PHARE CBCDivision

Agency Control Department (ACD)

(also ex-ante approval)

LegalDivision

ControlDivision

Department forManagement of the

OP BI

RegionalDevelopment

Division

DeliveryDivision

EnvironmentalDivision

2.5. ORGANIGRAM OF THE NATIONAL AGENCY FOR DEVELOPMENT OF

SMALL AND MEDIUM ENTERPRISES

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Co-ordination Department

IDGS Project Team

Financial Support Programmes Department

Regions and Education Department

Project OfficerSupport Loan Programme

Information and Foreign Activities

Department

Euro Info Centre

IT Manager

Economy and Administration

Department

Assistant to SAcO

Accounting Officer

Perseus Administration

Project OfficerMicro-loans Programme

Project OfficerSeed Capital Fund

TDGS Project Team

Project OfficerBusiness

Incubators

Project OfficerFirst Contact Point for SME

INTEG Project Team

Supervisory Board

3 members

Director GeneralPAO

Internal Auditor IAu

Ministry of Economy

Assembly of Representatives of

Association Members

Board of Trustees5 members

Secretariat (MPR)

Control UnitFinancial

Organisational Unit

Financial Unit

Programme Co-ordination

Unit

Other involved intermediaries

Regional Advisory and Information Centres

Business Innovation Centres

First Contact Point Centres

Seed Capital Company

participating banks

NADSME Organisational Structure

Employees of NADSME (1)

Job TitleJob Title EEmployeemployee’s Name’s Name

Program Authorising Program Authorising OfficerOfficer

Majtán JurajMajtán Juraj

Program Coordinating Program Coordinating OfficerOfficer

Pitoňák DanielPitoňák Daniel

Monitoring & Evaluation Monitoring & Evaluation OfficerOfficer

Burianová SlávkaBurianová Slávka

Project DirectorsProject Directors Kalužníková Darina – Tourism Development Grant Kalužníková Darina – Tourism Development Grant Scheme (TDGS)Scheme (TDGS)

Kellenbergerová Katarína – Innovation and Kellenbergerová Katarína – Innovation and Technology Development Grant Scheme (INTEG)Technology Development Grant Scheme (INTEG)

Stráňai Karol – Industry Development Grant Scheme Stráňai Karol – Industry Development Grant Scheme (IDGS)(IDGS)

Department DirectorDepartment Director Poledna Juraj – Information and Foreign ActivitiesPoledna Juraj – Information and Foreign Activities

Team LeadersTeam Leaders Madara Marián – TDGSMadara Marián – TDGS

Zachar Ľudovít – IDGS Zachar Ľudovít – IDGS

Project ManagersProject Managers Gériková Blanka – IDGSGériková Blanka – IDGS

Kedroňová Romana – INTEG Kedroňová Romana – INTEG

Laušová Adela – TDGSLaušová Adela – TDGS 25



Project ManagersProject Managers Masárová Ľubica – INTEG Masárová Ľubica – INTEG

Olha Ľubomír – IDGS Olha Ľubomír – IDGS

Pristašová Elena – TDGSPristašová Elena – TDGS

Žuffa Michal – INTEG Žuffa Michal – INTEG

Manager of Euro Info CentreManager of Euro Info Centre Hipča HenrichHipča Henrich

Executive AdministratorsExecutive Administrators Draškovič Martin – IDGS Draškovič Martin – IDGS

Malatincová Martina – TDGSMalatincová Martina – TDGS

Martanovičová Veronika – INTEG Martanovičová Veronika – INTEG

Project OfficersProject Officers Dragúň Peter – Support Loan ProgrammeDragúň Peter – Support Loan Programme

Masárová Ľubica – Seed Capital FundMasárová Ľubica – Seed Capital Fund

Opálek Maroš – Micro Loan ProgrammeOpálek Maroš – Micro Loan Programme

Strešňáková Slávka – FCP network Strešňáková Slávka – FCP network

Žuffa Michal – Business IncubatorsŽuffa Michal – Business Incubators

26



Financial ManagerFinancial Manager Krasnohorská VlastaKrasnohorská Vlasta

Account AdministratorAccount Administrator Hečková ZuzanaHečková Zuzana

Senior Accounting OfficerSenior Accounting Officer Cigánková ZuzanaCigánková Zuzana

Accounting OfficerAccounting Officer Hanusová EvaHanusová Eva

Perseus AdministratorPerseus Administrator Burzová EvaBurzová Eva

Assistant to Senior Assistant to Senior Accounting OfficerAccounting Officer

Hochelová LuciaHochelová Lucia

Personal ManagerPersonal Manager Vargová BarboraVargová Barbora

Manager for Public RelationsManager for Public Relations Paštéková BeátaPaštéková Beáta

IT ManagerIT Manager Rabatin RadoslavRabatin Radoslav

Marketing ManagerMarketing Manager To be recruitedTo be recruited

Financial ControllerFinancial Controller To be recruitedTo be recruited

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3. CONTRACTING PROCEDURES

28

3.1. GENERAL CONTRACTING PROCEDURES FOR SERVICES,

SUPPLIES, WORKS

29

CONTRACTING PROCEDURESDIVISION OF TASKS BETWEEN THE ACTORS OF

PROCUREMENTS AFTER EDIS - ACCORDING TO PRAG EX-POST

Actors:

• Implementing Agencies (IA): Central Finance and Contracting Unit (CFCU); Regional Development and Support Agency (RDSA); National Agency for Development of Small and Medium Enterprises

• National PHARE Co-ordinator (NAC): Office of the Government

• National Authorising Officer (NAO): Ministry of Finance

• National Fund (NF): Ministry of Finance

• Programme Authorising Officer (PAO) - CFCU, NADSME, RDSA

• European Commission’s Delegation to the Slovak Republic (ECD) until Accreditation

30

ProcedureProcedure PHAREPHARE ActivityActivity

1. Preparation of 1. Preparation of technical technical Specification (TS), Specification (TS), Terms of Terms of Reference (TOR)Reference (TOR)

Beneficiary under the supervision Beneficiary under the supervision of the IAof the IA

Findings and//or necessary Findings and//or necessary measures:measures:

Ensure sufficient resources for well Ensure sufficient resources for well prepared documentation – prepared documentation – allocation of necessary funding by allocation of necessary funding by the Government and/or other the Government and/or other donors. donors.

ACU is involved in procedure 2 and 3 ACU is involved in procedure 2 and 3 to to ensure of quality control and approval of ToR ensure of quality control and approval of ToR (Twinning light)(Twinning light)

2. Quality control 2. Quality control of TS and TORof TS and TOR

IA/CFCUIA/CFCU The co-ordination and quality review of procurement activities will be strengthened The co-ordination and quality review of procurement activities will be strengthened through establishment of the Unit for Public Procurement Supervision at the National through establishment of the Unit for Public Procurement Supervision at the National Fund for ex-ante issue. The expert assistance for well prepared tendering documentation Fund for ex-ante issue. The expert assistance for well prepared tendering documentation will be covered from the financial sources of final beneficiary. will be covered from the financial sources of final beneficiary.

3. Approval of TS, 3. Approval of TS, TORTOR

After EDIS responsibility of PAOAfter EDIS responsibility of PAO The checklist/ independent expert report has to be attached to the TS/TOR and then sent The checklist/ independent expert report has to be attached to the TS/TOR and then sent to the PAO for approval, the PAO has the full responsibility in all cases. to the PAO for approval, the PAO has the full responsibility in all cases.

31

See point 4.See point 4. See point 4.See point 4.8. Publication 8. Publication of PNof PN

The global and individual contract forecasts and procurement notices will be The global and individual contract forecasts and procurement notices will be electronically announced to the ECelectronically announced to the EC under conditions of the Practical Guide to under conditions of the Practical Guide to procedures financed from the General Budget of the European Communities in procedures financed from the General Budget of the European Communities in the context of external actions under decentralised ex-post management the context of external actions under decentralised ex-post management (Practical Guide ex-post) and published on the website of the Ministry of Finance (Practical Guide ex-post) and published on the website of the Ministry of Finance of the SR and on IAs own website. of the SR and on IAs own website.

IAs/CFCUIAs/CFCU4. Publication 4. Publication of Global and of Global and individual individual Contract Contract Forecast Forecast

The procedures will be applied in accordance with the Practical Guide ex-The procedures will be applied in accordance with the Practical Guide ex-post. No approval of the EC is required in ex-post management. IApost. No approval of the EC is required in ex-post management. IAs ands and CFCU will send CFCU will send aa letter of invitation to tender accompanied by the tender letter of invitation to tender accompanied by the tender dossier which has the content proposed in Practical Guide ex-post (type of dossier which has the content proposed in Practical Guide ex-post (type of contract, tender evaluation criteria, etc.)contract, tender evaluation criteria, etc.) only to only to shortlisted candidates.shortlisted candidates.

IACFCU IACFCU 7. Approval of 7. Approval of TD and TD and Procurement Procurement Notice (PN)Notice (PN)

The Evaluation Committee (ie, the Chairman, the Secretary and the The Evaluation Committee (ie, the Chairman, the Secretary and the voting members) must be nominated on a personal basis by the PAO voting members) must be nominated on a personal basis by the PAO (Contracting Authority). The participation of any observers must be (Contracting Authority). The participation of any observers must be authorised individually by the Contracting Authority.authorised individually by the Contracting Authority.

Contracting Authority Contracting Authority (usually PAO)(usually PAO)

9. Appointment 9. Appointment of members of of members of the Tender the Tender Evaluation Evaluation Committee Committee (TEC) (TEC)

The quality control is in full responsibility of IAs and PAOs supported The quality control is in full responsibility of IAs and PAOs supported by experts from Ex-ante units and on the spot review will be by experts from Ex-ante units and on the spot review will be performed by the experts from Unit for Public Procurement performed by the experts from Unit for Public Procurement SupervisionSupervision

IA/CFCUIA/CFCU6. Quality 6. Quality control of TD control of TD

According to the Practical Guide ex-post rules.According to the Practical Guide ex-post rules.IA/CFCU IA/CFCU 5. Preparation 5. Preparation of Tender of Tender Dossier (TD)Dossier (TD)

ActivityActivityPHAREPHARE ProcedureProcedure

32

ProcedureProcedure PHAREPHARE ActivityActivity

10. 10. Nomination Nomination of the of the Chairman and Chairman and secretary of secretary of the TECthe TEC

Responsibility of Responsibility of Contracting Authority Contracting Authority normally by the PAO.normally by the PAO.

This procedure shall secure that the procurement rules are fully This procedure shall secure that the procurement rules are fully respected and the evaluation is done professionally. The decision in respected and the evaluation is done professionally. The decision in this respect is with the PAOs. The PAO can not be the chairman – in this respect is with the PAOs. The PAO can not be the chairman – in order not to violate the rules of segregation of duties.order not to violate the rules of segregation of duties.

11. Approval 11. Approval of the TEof the TEC C and TERand TER

PAOPAO The non-voting NF observer (taking over to certain extent the tasks of The non-voting NF observer (taking over to certain extent the tasks of the EC Delegation observer) is invited to every EU public the EC Delegation observer) is invited to every EU public procurement evaluation session. When the non-voting NF observer procurement evaluation session. When the non-voting NF observer detects any error in the evaluation procedure he/she tries to solve on detects any error in the evaluation procedure he/she tries to solve on the spot – the spot – includes every observation in the report to the PAO.includes every observation in the report to the PAO. Whatever decision will be takenWhatever decision will be taken, , it is reported to the PAO and the it is reported to the PAO and the NAO/NAC by the NF observer. NAO/NAC by the NF observer.

The PAO after careful consideration –according to the “four eyeThe PAO after careful consideration –according to the “four eyess principle” – of the TER will decide upon the approval of the TER. If an principle” – of the TER will decide upon the approval of the TER. If an irregularity is detected by the NF observerirregularity is detected by the NF observer,, the report will ask the the report will ask the PAO to respect the relevant procedures for this eventuality.PAO to respect the relevant procedures for this eventuality.

12. 12. Preparation Preparation and and submission of submission of the draft the draft contract contract (together (together with the TER) with the TER)

Prepared by the Prepared by the Beneficiary, controlled by Beneficiary, controlled by the IA, forwarded to the the IA, forwarded to the PAO for approval.PAO for approval.

If the procurement procedure was held according to the PRAG rules, If the procurement procedure was held according to the PRAG rules, Contracting Authority (usually the PAO) should sign the contract. Contracting Authority (usually the PAO) should sign the contract.

33

ProcedureProcedure PPHAREHARE ActivityActivity

13. Contract 13. Contract signaturesignature

PAO/Beneficiary/ContractorPAO/Beneficiary/Contractor

Signed by all partiesSigned by all parties

14. 14. Publication of Publication of the Contract the Contract award notice award notice and and Notification Notification of of unsuccessful unsuccessful tendererstenderers

See point 4.See point 4. IAs/CFCUIAs/CFCU

34

3.2. CONTRACTING PROCEDURES FOR GRANTS

35

DIVISION OF TASKS BETWEEN THE ACTORS OF GRANT PROCEDURES IN

EDIS

Actors:• Recipient of the project-line ministry

• Senior Programme Officer (SPO)

• Implementing Agency (IA)

• Programme Authorising Officer (PAO)

• Monitoring Committee (MC)

• National Authorising Officer (NAO)

• European Commission (EC)

• Evaluation Committee (EvC)

• Applicants (APP)

• Beneficiaries (BEN)36

EvCEvCConclusion of the evaluation Conclusion of the evaluation

IA, PAOIA, PAOApproval of the EvC recommendationsApproval of the EvC recommendations

PAOPAONomination of EvC assessorsNomination of EvC assessors

EvCEvCOpening of applicationsOpening of applications

EvCEvCAssessment of administrative compliance and eligibility Assessment of administrative compliance and eligibility

EvCEvCAssessment of technical and financial quality Assessment of technical and financial quality

MCMCEndorsement of EvC composition Endorsement of EvC composition

IAIAAnswering the enquiries from APPAnswering the enquiries from APP

MC, ECMC, ECInformation on the list of grants awardedInformation on the list of grants awarded

IAIACreation of EvC, Selection of Assessors Creation of EvC, Selection of Assessors

IAIALaunching of the Call for ProposalsLaunching of the Call for Proposals

MCMCEndorsement of documentation for Call for Proposals Endorsement of documentation for Call for Proposals

IA, (TA), SPOIA, (TA), SPOPreparation of documentation for Call for Proposals Preparation of documentation for Call for Proposals

IA, ECIA, ECPublication of Annual Work ProgrammePublication of Annual Work Programme

Responsible for Responsible for ImplementationImplementation ProcedureProcedure

37

ProcedureProcedure

Responsible Responsible for for

ImplementatiImplementationon

Check level of financial commitmentCheck level of financial commitment IAIA

Approval/or rejection letters to APPApproval/or rejection letters to APP

(After reception of the letter of approval the applicant will (After reception of the letter of approval the applicant will automatically become BEN) automatically become BEN)

IAIA

Contract preparationContract preparation IAIA

Contract signatureContract signature PAO, BENPAO, BEN

Publicising the award of grantsPublicising the award of grants IA, ECIA, EC

Training of BEN on financial matters Training of BEN on financial matters IAIA

Training of BEN on procedures of implementationTraining of BEN on procedures of implementation IAIA

Establishing direct contact with BEN by e-mail, fax, tel.Establishing direct contact with BEN by e-mail, fax, tel. IA, BENIA, BEN

Managing monitoring activitiesManaging monitoring activities IAIA

Managing contract amendments Managing contract amendments IAIA

Processing of the requests for paymentProcessing of the requests for payment IAIA

Archiving of filesArchiving of files IAIA

38

MCMCEndorsement of the Final Report of the grant schemeEndorsement of the Final Report of the grant scheme

PAOPAOSignature of the Final Report of the grant schemeSignature of the Final Report of the grant scheme

IA, SPOIA, SPOPreparation of the Final Report of the grant scheme Preparation of the Final Report of the grant scheme

IA, SPOIA, SPOEvaluation of grant schemeEvaluation of grant scheme

Responsible for Responsible for ImplementationImplementation ProcedureProcedure

39

3.3. CONTRACTING PROCEDURES FOR TWINNING

40

National Aid Coordinator (NAC):

• The new twinning manual for EDIS will be presented to EU member states and accession countries on 4.-5. 12. 2003 in Brussels

• Organisation of twinning projects programming, preparation, selection, monitoring and internal project evaluation;

• Assistance in Twinning project fiches circulation in the Member States (MS) via the EC/MS National Contact Points (NCPs);

• Approval of compliance with jointly agreed objectives of the Twinning projects;

• Organising the process of selecting MS partners; 41

GUIDANCE ON TWINNING IN RELATION TO EDIS IN SR (1)

• The entirely duty and responsibility of both Twinning Partners (MS and AC) is to draw up the detailed work and time schedule, with corresponding budget, the NAC is in the role of observer and assessor in this process;

• Final approval of financing and assessment of work plan presentation to Commission’s Steering Committee;

• Notification of financing decision to Twinning partners (MS and AC) taking into account the European Commission's binding opinion on the work plan;

• Monitoring of Twinning projects;

• Final approval / endorsement of addenda to the valid TWC in compliance with valid “Manual on Twinning Projects”;

• Approval of final report via SPOs. 42


National Contact point for twinning in SR (NCP):

• Receipt of MS proposals transmitted by European Commission;

• Registration and transmission of the MS proposals to the AC institution;

• Organization and management of selection meeting and selection of partners (oral presentations);

• Elaboration of annual evaluation of implemented Twinning projects for Slovak Government session;

43


• Dispatch of the Call for proposals for CARDS and TACIS projects, transmitted by European Commission to relevant Slovak ministries;

• Assistance to Slovak ministries in drafting proposals for CARDS and TACIS project proposals and its annexes;

• Dispatch of the Slovak proposals for CARDS and TACIS projects to the European Commission.

44


National Authorizing Officer - NAO

• Full financial responsibility and liability for the management of aid funds on a decentralised basis as per Council regulation 1266/99

Central Finance and Contracting Unit – CFCU (represented by PAO)

• In compliance with valid “Manual on Twinning Projects” CFCU is responsible for making payments for Twinning projects;

• Endorsement of the proposed budgetary part of the Twinning Covenant (conditional if budgetary rules are not followed);

• Endorsement of the budgetary part of the addenda to the valid Twinning Covenant;

• Tendering and contracting of private sector inputs for services and supplies under the Twinning Covenant in accordance with the valid “Manual on Twinning Projects”;

• Tendering and Contracting of Twinning light projects. 45


PREPARATION PHASE

Call for proposals

• Twinning project fiches are circulated in the MS via the EC/MS NCPs;

• The deadline for submission of offers is set by the EC – in EDIS by the NAC (approximately 6 – 8 months);

Offers

• The offers are received at the NAC and are expected to show a certain degree of preparation;

• Generally, the MS twin has to be headed by a competent public administration;

• The proposal of non-administrative bodies may be accepted (mandated bodies). 46

• Registration and transmission of the MS proposals to the AC beneficiary institution is organised by NAC office;

• NAC organises the meetings between the proposing MS administrations and the AC beneficiary institution (oral presentation);

• NAC submits minutes of selection meeting with AC beneficiaries choice evaluation to the Commission;

• Commission communicates the final choice of the AC of the MS partners, the MS National Contact Point and to the DG Enlargement.

SELECTION

47

Drafting the Twinning Covenant

• entirely the duty and responsibility of both Twinning partners (MS and AC)

• the work schedule has to reflect a clear strategy (measurable benchmarks, targeted results)

• the CFCU verifies whether the Covenant’s budget is in line with the rules set by the Twinning Manual

Assessment and financial approval

• the draft Covenant has to be submitted to the NAC within 3 months of the notification of selection for commenting

• final approval of financing and assessment of work plan presentation to Commission’s Steering Committee by NAC

PREPARATION OF THE COVENANT (1)

48

Endorsement of the Covenant by SC

• conditional if budgetary changes are required or unconditional

Preparation of TWC final version

Signature of the TWC by AC and MS partners

Endorsement of the TWC by CFCU

Endorsement and notification by NAC

PREPARATION OF THE COVENANT (2)

49

All payment requests of the Twinning project have to arrive to the CFCU via the SPO. The SPO has to verify that the services have been rendered.

PAYMENT PROCEDURE OF THE TWINNING PROJECTS

50

Advance payment

• disbursed upon the endorsement of the Covenant

• in compliance with the valid “Manual on Twinning Projects”

Interim payments


Final payment


• after the approval of the final report by the AC beneficiary institution and NAC

PAYMENT PROCEDURE OF THE TWINNING PROJECTS

51

• the CFCU's duty is to check whether all occurred costs are eligible and do not exceed the funds allocated to the budget lines

• no background documentation is needed (audit certificate)

• the Quarterly Progress Reports have to be submitted to the CFCU

REPORTING

The twinning partners are obliged to submit Quarterly Financial Reports to the CFCU, signed by both Project Leaders

52

• the Twinning partners have to notify, in certain cases ask for approval, the NAC and/or CFCU on any change that they are willing to make to the Covenant

• the CFCU is required to check whether:

- the proposed modifications are eligible

- the format of the modification is in line with the requirements of the valid “Manual on Twinning Projects”

- the budgetary consequences are in line with the proposed changes in the implementation of the project

- the modifications to be done are not retroactive

MODIFICATIONS OF THE COVENANT

53

PRIVATE SECTOR INPUT

54

Directly contracted by the CFCU in compliance with valid “Manual on Twinning Projects”

• Amounts for private sector inputs with unit cost above the ceiling of 10.000 EUR for supply of services

• Amounts for private sector inputs with unit cost above the ceiling of 5.000 EUR for supply of goods

• Selection process of the PAA Assistant is organized directly by PAA or Project Leader, contracted via CFCU

National Aid Coordinator (NAC)

• Organisation of twinning light projects programming, preparation and monitoring;

• Assistance in Twinning light Terms of Reference circulation in the Member States (MS) via the National Contact Points;

• Approval of compliance with jointly agreed objectives of the Twinning light projects;

• Observer role in approval of financing and assessment of work plan presentation to Evaluation Committee at the CFCU;

• Monitoring of Twinning light projects;

• Approval of final report via SPOs.

GUIDANCE ON TWINNING LIGHT IN RELATION TO EDIS IN SR (1)

55

National Contact point for twinning in SR (NCP)

• Twinning light Terms of Reference circulation to MS inviting them to submit the proposals;

• Receipt of MS proposals transmitted by European Commission or MS NCP's;

• Registration and transmission of the MS proposals to the beneficiary institution and to CFCU.


56

National Authorizing Officer (NAO)

• Full financial responsibility and liability for the management of aid funds on a decentralised basis as per Council regulation 1266/99;

Central Finance and Contracting Unit (CFCU) - represented by PAO

• Organization and management of selection meeting and selection of partners – organization of evaluation process;

• Contracting of Twinning light projects;

• Payment procedures including all addenda preparation;


57

4. PAYMENT AND ACCOUNTING PROCEDURES

58

4.1. PAYMENT PROCEDURES

59

STRUCTURE OF PAYMENT PROCEDURES FOR PHARE PROGRAMMES (1)

• The National Fund owns PHARE EUR accounts for each Financing Memorandum, opened in the National Bank of Slovakia (NBS) under Framework agreement concluded under Slovak Commercial Code. These accounts were opened by the Ministry of Finance SR for the National Fund (together 115 EUR accounts for FMs and subprograms)

• The Ministry of Finance SR/NF opened the EUR subaccounts for the IAs/CFCU for each program (or in case of a National Program: for subprograms)

• The account users acknowledge that the foreign exchange account serves exclusively the performance of payment circulation related to the PHARE Programme, no payment may be effected from it for any other purpose (according to the Agreement on conduct of accounting for PHARE Programme signed with NAO, Director of NF and relevant IAs/CFCU)

60


• The Slovak contribution (co-financing) is provided from the General Treasury Administration Chapter and on the basis of request of relevant chapters, the requested amount is after being endorsed by the NF transferred to the budgetary chapter (budgetary measure).

• After the 1st January 2004, the new amendment of the Act No. 303/1995 on budgetary rules will be in force, which will allow to transfer the relevant co-financing amount from the NF SKK account to IAs/CFCU account in EUR.

61


• Disposal right over the PHARE EUR account is according to the bank mandate:

NAO and PAOs are always notified use of the ‘double signature’ system

• Modification of persons authorised to dispose with the PHARE EUR account – modification of the bank mandate – is according to the Framework Agreement;

62

INTEREST RATES

• All accounts for PHARE Programme are kept in the NBS

• Interest rates - under normal commercial conditions (deposit facility of the ECB minus 0,5 %)

• Tax on interest is repaid from the State budget to the EC on the basis of Debit note

63

REQUESTING FUNDS FROM THE EUROPEAN COMMISSION (1)

• General Conditions to submit Request for Payment to the Commission (FM):

pre-2002 programmes: trigger point 10%, 30%,50%,70%;

from 2002 programmes: trigger point is 5%, 35, 70%;

instalments: pre-2002 programmes: 5 times 20%from 2002 programmes: 20%-30%-30%-20%

64

REQUESTING FUNDS FROM THE EUROPEAN COMMISSION (2)

• The NF monitors the actual and forecast disbursement figures with regular quarterly Request for Funds (Financial Report), all data are checked via Check Lists

• If the actual disbursement for the given programmes reaches the trigger point, the NF requests the IAs/CFCU to submit the necessary data in order to that the NF can compile the Request for Funds, all data are checked via Check Lists

• The NF compiles (respecting the ‘four eyes’ principle) the Request for Payment and submits it to the Commission

65

REQUESTING FUNDS FROM THE NATIONAL FUND BY THE IAs/CFCU

• The IAs/CFCU compile and submit to the NF Quarterly Request for Funds with all necessary documents (similar to Request for Payment submitting to EC), including identification of monthly needs

• NF checks the Request (Check Lists, respecting the ‘four eyes’ principle), and in case of error the IAs/CFCU is asked for correction

• If the NF accepts the Request, it transfers the amount requested monthly to the account with disposal right of the IAs/CFCU, the payment order must be signed, using the ‘double signature’ system (Check List) according to the bank mandate and the account contract 66

FINAL FINANCIAL DECLARATION

• According to the provisions of the Memorandum of Understanding (Article(4) 4§) a final written declaration (Declaration concerning the financial data of Programme XY after expiry date) with supporting documentation shall be issued by the NAO within two months after the end of the disbursement period of the Financing Memorandum, showing the total amount contracted and disbursed (concerning the PHARE as well as the national co-financing part).

• The NF requests the IAs/CFCU to compile and submit the required data to it, certified by the PAO, within one month after the disbursement deadline passed requests the IAs/CFCU to transfer back the amount left in their EUR account to the NF EUR account

• The NF checks the documents, and subsequently it compiles and submits the Declaration, signed by the NAO to the EC

67

REPAYMENTS TO THE EUROPEAN COMMISSION

• After submitting the Declaration, the NF receives the Debit Note from the Commission

• After crediting all the amounts from the IAs/CFCU, the National Fund transfers the total required amount to the account specified in the Debit Note by the Commission

68

REALLOCATION AND FICHE MODIFICATION (1)

• According to the Memorandum of Understanding (Article 5), the NAO may request a reallocation of funds from one sub-programme to another, within the same Financing Memorandum (FM) following a recommendation from the Joint Monitoring Committee (JMC).

• Reallocation documentation is prepared by the NAC, and is submitted to the NAO

• Reallocation related to amount under the 15% of the total budget allocation of the FM is checked by the NF and approved by the NAO, and then the NAO informs the EC about the reallocation with a standardised letter

69

REALLOCATION AND FICHE MODIFICATION (2)

• Reallocation related to amount over the 15% of the total budget allocation, or if existing projects are cancelled or new projects are created, involving a change of objectives from those in the relevant Financing Memorandum, is checked by the NF, and certified by the NAO, and submitted to the Commission for approval. If the information about the approval has arrived only to the NAO or the NAC, the both institutions inform each other and the relevant IAs/CFCU.

• The fiche modification is made by the NAC, who informs all the relevant bodies about the new project fiche.

70

RECORDING

The NF/IAs/CFCU records all the main and relevant data of all activities, the most important are the follows:

• The NF/IAs/CFCU records the account turnovers and relevant contract data into PERSEUS and into PERSEUS own datasheets

• The NF records the data of the reallocation and informs the relevant bodies

• The NAC records the data of the Fiche modification and informs the relevant bodies

• The NF records the payment claims received from the IAs/CFCU, and the transfers made by the NF

• The NF records the changes of the PAOs and Deputy PAOs

71

FINANCIAL REPORTING SYSTEM

• According to the Government Decree 856/1998 and the Financing Agreements and the Agreement on conduct of accounting for PHARE Programme, the NF has the right to request all the data related to PHARE from the IAs/CFCU

• Regular monthly Financial Report on the actual and forecast disbursement figures

• PERSEUS reports of the IAs/CFCU are sent to the NF and the EC regularly on bi-weekly basis, the last actual PERSEUS Report is enclosed to the Request for Funds

• Ad-hoc reports, if required from the EC or involved institution

72

OTHER

• All the documents submitted to the EC are signed by the NAO, and all the documents submitted to the NF are signed by the PAO

• In all the relevant procedures the participants are respecting the ‘four eyes’ principle

• All the information is collected and recorded for all relevant activities of the NF

73

4.2. ACCOUNTING PROCEDURES

74

ACCOUNTING PROCEDURES AND REPORTING

Recording- EU commitments by FMs - Contracted amounts and spending of PHARE funds

- Requests for Funds (NF from the EU, IAs from the NF)

- PHARE funds received from the EU and those transferred to the IAs

- Bank interests and bank costs- Overpayments/irregularities(Recording is made by programmes in SKK and EUR)

Reporting- On spent and available PHARE funds to the EU

(Contains summarized data of the NF and the IAs)

- Requests for funds (IA from the NF, beneficiaries from the IA)

- PHARE funds received from the NF and transferred to the beneficiaries

- National co-financing (line Chapter)

- Beneficiaries’ own sources- Balance Sheet to the NF(Recording is made both in SKK and EUR)

- Notices on every transaction (contracts, spending of funds, repaid amounts, bank interests and costs etc.) continuously to NF

- Yearly summarized amounts by programmes and by sources to NF

National Fund

Implementing Agencies

reco

nci

liati

on

report

ing

reco

nci

liati

on

report

ing

reco

nci

liati

on

report

ing

75

PERIODICAL RECONCILIATIONS BETWEEN THE NATIONAL FUND AND THE PHARE

IMPLEMENTING AGENCIES

76

data from Perseus registered at the NF data from Perseus registered at the NF PHARE Unit with accounting data PHARE Unit with accounting data registered at the NF Accounting Unit registered at the NF Accounting Unit

ccontracted amounts from EU ontracted amounts from EU commitments declared in Financial commitments declared in Financial Memoranda by programmesMemoranda by programmes

commitments resulted from commitments resulted from irregularitiesirregularities

using of PHARE funds transferred from using of PHARE funds transferred from NF to IAs/CFCU according to FM NF to IAs/CFCU according to FM

quarterlyquarterlymonthlymonthly

FrequencyFrequencyReconciliation ofReconciliation of

Implementation Agencymonthly analytical balance sheetsdata on debtsirregularities reportsmethodological regulations

outlines on drawing for reconciliation

Flow of Accounting Documents

Inputs

Outputs

77

PHARE Unit applicationspayment ordersbank statementsdata on debtsirregularities reports

outlines on drawing for reconciliation

Accounting Unitcomplex processing of accounting agenda

Department of State Closing Account, Debt and Accounting, MF SRquarterly balance sheetsannual outlines on drawing

Ministry of Finance of the SR

National fund

ACCOUNTING PROCEDURE

Accountant (1)

book-keeping

Accountant (2)

deputation

Head of AU

forwarding

Head of AU

control

source document from PHARE

Unit

Accountants (1) (2)

filing

78

79

STRUCTURE OF ACCOUNTING SOFTWARE

General ledger

sub-system

gen

era

l le

dg

er

leve

lan

aly

tica

l re

gis

try

leve

l

documents on claims

documents on

commitments

documents on banking

„Claims”analytical registry „Commitments

”analytical registry

„Bank”analytical registry

5. MONITORING AND EVALUATION

80

5.1. MONITORING AND EVALUATION -

CHANGES IN THE LIGHT OF THE PHARE EDIS AND THE ACCESSION TO

THE EUROPEAN UNION

81

The monitoring function has been fully decentralised to the responsibility of Slovak authorities.

Legal Background• Chapter 21 and 28 of acquis• EDIS Road Map, Working Document• General Directive on PHARE Programme, Government Decree 55/2002• PHARE Financing Memoranda• Guidelines for PHARE Programme Implementation

Responsibility• NAC is responsible for overall co-ordination and quality assurance of monitoring.• All recipients of PHARE assistance (beneficiaries) are responsible for preparation of the project monitoring reports. • NAC represented by the ACU is responsible for the preparation of sectoral monitoring reports for the Sectoral Monitoring Sub-Committees (SMSC) and Joint Monitoring Committee (JMC) meetings.

MONITORING (1)

82

Procedures:

• Joint Monitoring Committee (JMC)

• Sectoral Monitoring Sub-Committees (SMSC)

• Steering Committee/Monthly Meeting (SC/MM)

• Contracting Meeting for monitoring of tender documentation preparation and contracting performance

83

MONITORING (2)

PHARE MONITORING COMMITTEES

84

Joint Monitoring Committee

SMSC

Civil Society

SMSCJustice and

Home Affairs

SMSCInternal Market

Development

SMSCEconomic and Social Cohesion

SAPARDMonitori

ngCommitt

ee

ISPAMonitori

ng Committe

e

SM/ MM

SM/ MM

SM/ MM

SM/ MM

SM/ MM

SM/ MM

SM/ MM

SM/ MM SM/ MM

SM/ MM

SM/ MM

SM/ MM

SM/ MM

SM/ MM

SM/ MM

The Interim Evaluation (IE) function was fully decentralized to the responsibility of Slovak Authorities on 31 July 2003. The ex-post evaluation function of PHARE funds remains Commission´s responsibility. There are following major changes due to the EDIS implementation:

• Slovak Republic is responsible for overall management of IE (for contracting of external evaluators, TOR preparation and provision of funds)• NAC is responsible for IE quality checking and authorization of final IE Report

Current Status of taking over the IE responsibility from the EC

• Know-how transfer from EMS local evaluator (August-November 2003) according to the Work Plan

• Action Plan for Monitoring and Evaluation prepared by NAC (including distribution of responsibilities)

EVALUATION (1)

85

EVALUATION (2)

• Procurement Notice for PHARE IE in 2004 published on 7 November 2003 with the envisaged start of the IE early 2004

• Funds for IE reserved in 2002 UIBF. Further funds include 2003 UIBF, Transition Facility 2004-2006 and State Budget. Co-financing for 2004 covered by the SR bearing certain logistic and operational costs

• Monitoring and Evaluation Cell (Division) established at the ACU

Challenges in Monitoring and Evaluation

• On-line monitoring PRIMA to be operational

• Measurability of indicators of project objective achievements

• National evaluation strategy for all EU-funded projects

• Quality assurance of monitoring and IE reports (closely linked to absorption capacity)

86

6. INTERNAL AUDIT

87

INTERNAL AUDIT ACTIVITY RELATED TO THE PHARE PROGRAMMES

• Act No.502/2001 Coll. on Financial Control and Internal Audit on amendments and complements to some Acts, established the main base for the development in this area. By the Government Decrees No.702/2001 and 947/2002 the limit for the administrative capacities for the internal auditors was raised by 35 posts altogether ( 34 positions of internal auditors are filled till now).

• The forming of the internal audit activity in the Slovak Republic was supported via PHARE Twinning projects, focused on audit trail, risk assessments and the preparation of the internal audit charters and manuals.

• According to the Slovak Republic Government Decree No. 1154/2001 dated 12th December, 2001 - "Priority Tasks of Government of SR arising from the European Union Regular Report in preparation of SR for EU Membership dated 13th November, 2001” - it is necessary to safeguard a creation of Internal Audit Units in ministries, the other Central State Administration Bodies and selected budgetary chapters and their staffing;

88

In accordance with Act No.502/2001 on Financial Control and Internal Audit the relevant ministries responsible for the IAs and CFCU have established the positions of internal auditors:

• Ministry of Finance of SR (NF and CFCU) 6 internal auditors (8 positions)

- the Internal Audit Department is subordinated directly to the Minister (auditors report directly to the Minister, the issues connected with the EU Funds also to the NAO)

• Ministry of Construction and Regional Development 2 (3 positions)

• Ministry of Economy 3 (4 positions)

INTERNAL AUDIT UNITS (1)

89

• In performing their activities, they follow the Act, Decree No. 286/2002, Charter Code, Manuals and other methodological guidance provided by the Financial Control and Internal Audit Methodology Unit (CHU).

• The Internal auditors elaborated the Annual Audit Plans and Three Years Strategic Plans which are based on risk assessment and the Audit Needs Assessments.

• During the preparation for EDIS all internal auditors were the members of working group for internal audit and financial control and participated in regular Steering Committees.

• Internal auditors executed the system audit and financial audit combined with compliance audit in majority of entities involved in EDIS exercise.

INTERNAL AUDIT UNITS (2)

90

The scope of work of the Internal auditors is to determine whether the organization’s network of risk management, control, and governance processes, as designed and represented by management, is adequate and functioning in a manner to ensure that:

• Risks are appropriately identified and managed.• Management and control system is adequate.• Financial interests of the EU and the Slovak Republic

are protected. • Financial, managerial, and operating information is

accurate, reliable, and timely.• Employees’ actions are in compliance with policies,

standards, procedures, laws and regulations.• Resources are acquired economically, used efficiently,

and adequately protected.• Programmes, plans, and objectives are achieved.

RESPONSIBILITIES OF THE INTERNAL AUDITORS

91

Mr. Ľubomír Šidelský - Director of the UnitMr. Ivan Zoborský - assistant to the DirectorMr. Peter Pado - internal auditorMs. Helena Viková - internal auditor Ms. Lýdia Oulehlová - internal auditor Ms. Marta Bullová - internal auditorMr. Jozef Laclavík - internal auditor Ms. Darina Velická - internal auditor

INTERNAL AUDIT UNIT OF THE MoFSR

92

7. PUBLIC INTERNAL FINANCIAL CONTROL

93

RECENT DEVELOPMENTS IN THE FIELD OF PUBLIC INTERNAL FINANCIAL CONTROL

• Ministry of Finance of the Slovak Republic, being the central authority of the state administration for the financial control and internal audit, established Internal Audit Unit subordinated to Minister, Financial Control and Internal Audit Methodology Unit (Central Harmonisation Unit - CHU) and Department for Financial Control of EU sources executing the 5% control and 15% control of various funds.

• Department for Financial Control of EU sources was established in September 2003 and will be responsible mainly for ex-post control of EU and State sources.

• Financial Control and Internal Audit Methodology Unit was established in October 2001 and drafts the legislation and provides the methodological guidance, supervision, reporting and training.

• Simultaneously with creation of CHU, the Unit of Internal Audit has been established.

94

THE MEASURES ADOPTED BY CHUTHE MEASURES ADOPTED BY CHU

In the field of public internal financial control the following measures have been adopted:

• Act No. 502/2001 Coll. on Financial Control and Internal Audit and on Amendments and Complements to Some Acts creates the basic legislative framework for public internal financial control (hereinafter referred to as ”Act”).

Secondary legislation related to Act No. 502/2001 Coll.:

• Decree No. 517/2001 Coll. on the Contents of the Annual Report Concerning the Financial Control Results related to all public administration bodies.

• Decree No. 286/2002 Coll. on Details of Contents of the Internal Auditor’s Annual Report and Internal Audit Performance. 95

• Financial Control and Internal Audit Methodology Unit is a beneficiary of the PHARE Twinning project SR0109 (1st January 2003 until 10 April 2004).

• Model Internal Audit Charter has been elaborated by the MoF and published in Financial Reporter of MoF SR.

• Methodological guide for 5-15% checks is under preparation.

96

RECENT DEVELOPMENTS IN THE FIELD OF PUBLIC INTERNAL FINANCIAL CONTROL

RECENT DEVELOPMENTS IN THE FIELD OF PUBLIC INTERNAL FINANCIAL CONTROL -

TRAINING

• In the framework of the Twinning project SK01/F1/02: trainings, workshops, study tours and on-the-job trainings in Member States;

• Training activities organised by the Control Section of the MoF SR and Financial Control and Internal Audit Methodology Unit of the MoF SR and experts working in the IAs and ministries from the environment of financial control and internal audit. Many representatives of the National Fund passed the exams and obtained the financial control certificate.

97

FINANCIAL CONTROL AND INTERNAL AUDIT METHODOLOGY UNIT (CHU)

Dana Dyčková, Director of the Unit

98

Oľga RadováOľga Radová

Jozef KotrýJozef Kotrý

Gabriela IzákováGabriela Izáková

Ivan PorubskýIvan Porubský

Andrea HuťkováAndrea Huťková

Marian VagovičMarian Vagovič

Monika Monika ŠimoničováŠimoničová

Soňa TykováSoňa Tyková

Štefan ForgáčŠtefan Forgáč

Janka BielikováJanka Bieliková

Zlatica DittrichováZlatica Dittrichová

Mária PotočanováMária Potočanová

Viera RumankováSylvia GlovackáKatarína JančálkováDaniela JovanovičováMartina LatkováEduard SzittayDaniel ChudinaVladimír GuľaMargita Bohumelová

FINANCIAL CONTROL OF EU FUNDS DEPARTMENT

Dáša VálováBarbora KmecováFrantišek MolnárJaroslav PápayJán RepkaVladimír LetenayPavol SchneiderAlena FeketíkováMiroslav Danek

Helena Oswaldová, Director of the Department

99

8. IMPLEMENTATION OF THE ROADMAP STAGES

100

• Gap assessment was carried out by the External Auditor Company – Deloitte & Touche for the following entities:- NF, CFCU, RDSA, NADSME, SARIO and PHARE Department of the

Ministry of Labour, Social Affairs and Family (November 2002)- and for the Office of the Government (ACU) June 2003 (NAC/ACU

prepared before the Self Assessment Report for the National Fund)

• EDIS Steering Committee and 4 working groups (accounting, internal audit and financial control,procurement) were set up by the NAO to coordinate the EDIS preparation

• Based on identified gaps and recommendations from the final report of Deloitte & Touche, the EDIS was compiled Action plan

• The costs of the external audit were covered from the SR State budget

STAGE I. – GAP ASSESSMENT

101

• The gap plugging TA was covered from the Financing Memorandum 2002/000-585 “Horizontal Programme preparing candidate countries for EDIS in the management of pre-accession funds in Slovakia”

• The gap plugging was carried out for the following bodies: NF, NAC/ACU, CFCU, RDSA, NADSME and internal audit representatives from related ministries

• Technical assistance for the gap plugging was organized horizontally for the human resources development, management and procedures and IT development, and was implemented during June – August 2003

• The coordination was performed by the National Fund

STAGE II. – GAP PLUGGING

102

• Recommendations, proposed structure, materials were incorporated into the manuals of NF, NAC/ACU, CFCU, NADSME, RDSA

• EDIS Manuals are submitted to the NAO by the following bodies involved in the PHARE implementation process in August 2003:

NAC/ACU, National Fund, CFCU, RDSA, NADSME

STAGE II. – GAP PLUGGING

103

Activities started: 22 September 2003

• The same company – Deloitte & Touche made the compliance assessment

• Main activities were planned for 7 weeks, pre-accreditation and final report (Auditors opinion and recommendations) was finalised by 27 October 2003

• EDIS package including the Request of the NAO for Stage IV. together with the Auditors opinion will be forwarded the EU Commission in the second half of November 2003

STAGE III. – COMPLIANCE ASSESSMENT

104

9. PROCUREMENT-TRANSITION FROM PRAG TO EU DIRECTIVES

105

• Procurement procedures awarded by a Contracting Authority of the Slovak Republic are governed by the following legislation:

- Council Regulation (EC, Euroatom) No.1605/2002 on the Financial Regulation applicable to the general budget of the European Communities

- Commission Regulation (EC,Euratom)No.2342/2002 laying down detailed rules for the implementation of above mentioned Council Regulation

GENERAL LEGISLATION FOR PHARE

106

APPLICATION OF THE EC PROCUREMENT RULES IN THE SR (1)

• The rules governing the way in which service, supply and works contracts are awarded and procedures (also a standard documents and templates) established by the European Commission for procurement under the relevant EC programmes are consolidated in the Slovak Republic Guide to contract procedures financed from the General Budget of the European Communities in the context of external actions under decentralised ex-post management. This Guide respected rules established in Practical Guide to contract procedures financed from the General Budget of the European Communities in the context of external actions (May 2003).

107

APPLICATION OF THE EC PROCUREMENT RULES IN THE SR (2)

• The ex-ante procedures for procurement under the Practical Guide to contract procedures financed from the General Budget of the European communities in the context of external actions were elaborated by the National Fund for clear separation of basic procurement rules under decentralised ex-ante conditions. The ex-ante SR Guide and the ex-post SR Guide were distributed to all the IAs and the CFCU.

108

TRANSITION TO THE PROCUREMENT PROCEDURES AFTER ACCESSION (1)

• National Procurement legislation in the Slovak Republic is the responsibility of the Office for Public Procurement

• The new Act No. on procurement and on amendment of the Act No. 575/2001 Coll. on the organisation of activities of the government and on the organisation of central state administration, was approved by the Parliament on 24 October 2003 and enters in force on 1 January 2004

• The Working group for procurement established in 2002 under the Steering Committee for EDIS preparation started to compare the procedures in EC Guide and new proposal of the new Act

• The Office for Public Procurement draws up programmes of professional training and additional training and supervises execution thereof, provides examination of candidates and runs a list of professionally qualified persons in public procurement

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TRANSITION TO THE PROCUREMENT PROCEDURES AFTER ACCESSION (2)

• The Office for Public Procurement executes state administration and surveillance of public procurement which consists of - decisions on claims filled by the participants of public procurement- execution of audit prior and after contract conclusion - any other activities pursuant to the Act No. , Title Two, „Review Procedures“

• National Fund will continue in cooperation with the Office for Public Procurement experts on the preparation of standard procedures, documents and templates which simplify harmonisation of transition process after accession in the field of procurement.

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THANK YOU FOR YOUR THANK YOU FOR YOUR ATTENTIONATTENTION