1. VAPRO www.vapro-international.com Bucuresti 30 Octombrie 2009 Theo Seip Contact Romania: Irina Zugravu E-mail: i.zugravu@vapro.ro

2. 30-10-2009 2 Key Facts and Figures VAPRO Services Consultancy HRD Learning materials Exams Training Subsidy consultancy Key Facts  Number of employees: 120  Annual turnover: € 15 million  Cooperation in international projects and consultancy jobs in South America, Africa, Middle East, Asia and all over Europe  Recognized by the Ministry of Education/the Ministry of Social Affairs & Employment and social partners

3. 3 Subsidy consultancy Netherlands Involvement in ESF management and consultancy since beginning of the `90-s Approx 150 projects developed for 1500 companies Total project value: 300 mil euros Total value financed by the ESF 165 mil euros 30-10-2009

4. 4 Subsidy consultancy Romania Involvement in ESF management and consultancy since 2008, the opening of the ESF program Approx 50 projects developed for clients such as: companies, NGO-s, public institutions, universities, social partners Total project value approved: 63 mil lei/15 mil euro Total value financed by the ESF: 50,4 mil lei/ 12 mil euro

5. Project scheme Preparation phase Final payment Feasibility Project preparation Application Contract Implemen- tation Reimburse- ment claims Implementation phase Final report claim 30-10-2009

6. 6 Problems in feasibility phase, project preparation and application phase Overload of key areas, guides and regulations Companies have problems to relate the key activities in the guidelines to their own activities and make a match Consultation with IB/MA in this phase is nearly impossible, so no feedback on quality of projects in this stage Formats and rules are being changed during the project plan Very detailed project plan is required but cannot be very realistic and causes problems in implementation There is no calendar for the Opening/closing of calls for proposals so that beneficiaries cannot make a strategy in advance 30-10-2009

7. Problems in project contracting/implementation phase Romanian ESF legislation is not in line with EU legislation, which causes problems during these phases No clear set of rules, or changing set of rules => moving target for beneficiaries Lack of knowledge and communication at IB/MA: no guidance for Beneficiaries. Romanian rules are very difficult to interpret and follow for international partners. Assessment of reimbursements by IB/MA takes a lot of time => cash flow problems The authorities creates rules that cannot be put into practice =>delays The procurement procedures are stricter than EU requires =>delays 30-10-2009

8. General observations and conclusions Low absorption in the first years is common for every new member state, however, there are some specific threats in Romania: ESF- structure still is week compared to other member states: – cooperation between public and private parties within the framework of ESF still has to be developed – cooperation between employment and employees organizations in sectoral committees is fragile Fear for fraud and tendency to over regulate in Romania, which causes: – excessive bureaucracy – double control systems (audit by auditor and double check by MA) – Too strict procurement procedures Focus is mainly on allocating the available funds, but should now be on actually spending the money (utilization rate) 30-10-2009

9. 9 Prevention of problems The beneficiary should anticipate! Before starting project: Get informed about administrative requirements Set-up internal management and control procedures During project: Monitoring of project is essential to be able to identify and fix administrative flaws in time Involvement of an independent project auditor 30-10-2009

10. 10 Lessons learnt Administrative requirements and interpretations are very strict, but also multi interpretable Requirements and interpretations can change over time Therefore: discussions and issues on e.g. eligibility of costs Good contacts with MA/IB necessary Involvement of independent project auditor is advised Monitoring of project progress by MA/IB or project auditor is vital Good management and control procedures administrative organisation and internal control structure is vital 30-10-2009

11.  Questions?