1. EU-Regional Policy and Cohesion Structural Funds and Accession 1 ANNUAL MEETING OF ISPA PARTNERS 2003 FROM ISPA TO COHESION AND STRUCTURAL FUNDS BRUSSELS, 9-10 APRIL 2003 BUILDING INSTITUTIONAL CAPACITY Pascal Boijmans DG Regional Policy

2. EU-Regional Policy and Cohesion Structural Funds and Accession 2 QUESTIONNAIRE CHAPTER 21 Objective and Scope - Legislative framework - Institutional framework - Administrative capacity - Programming capacity - Financial and budgetary management Deadline 30 April 2003 Report to be presented by Commission in July 2003 Ministerial meeting in October 2003

3. EU-Regional Policy and Cohesion Structural Funds and Accession 3 ADMINISTRATIVE CAPACITY REPORT Management Programming Implementation Evaluation and Monitoring Financial management and control

4. EU-Regional Policy and Cohesion Structural Funds and Accession 4 ADMINISTRATIVE CAPACITY: MANAGEMENT Role of Managing Authority (MA) MAs have been nominated (requirement chapter 21) Most often Ministries of Finance or Economic Affairs have been designated Staffing is still insufficient Sub-delegation of tasks needs clarification Conclusion: bodies are designated, but structures and staffing need attention

5. EU-Regional Policy and Cohesion Structural Funds and Accession 5 ADMINISTRATIVE CAPACITY: PROGRAMMING EE, LV, LT, SL, MT: 1 programme per country PL: 1 framework + 7 programmes CZ: 1 framework + 5 programmes + 2 programmes for Prague SLK: 1 framework + 4 programmes + 2 programmes for Bratislava HUN: 1 framework + 5 programmes CY: 3 programmes TOTAL: 37 programmes will be submitted between February and May

6. EU-Regional Policy and Cohesion Structural Funds and Accession 6 ADMINISTRATIVE CAPACITY: PROGRAMMING Limited number of programmes for period 2004-06 Keep structures of programmes simple: limited priorities and measures; make clear choices: no shopping lists Partnership: strengthen inter-ministerial coordination and involvement of regions, social partners and NGOs Quantification of targets: indicators Budget allocation per programme and per Fund Coordination between SF and Cohesion Fund Conclusion: much progress booked during last year, still some work ahead

7. EU-Regional Policy and Cohesion Structural Funds and Accession 7 ADMINISTRATIVE CAPACITY: IMPLEMENTATION Role of intermediate bodies (IB): preparation and selection of projects Designation is still on-going No clear definition of tasks Staffing is still insufficient EC: possibilities to support from technical assistance EC recommendation: limit no. of IBs per programme Strong dependence on external expertise

8. EU-Regional Policy and Cohesion Structural Funds and Accession 8 ADMINISTRATIVE CAPACITY: IMPLEMENTATION Project application flow: 1. Intake 2. Assessment 3. Selection 4. Contracting 5. Payments 6. Monitoring Project pipeline Conclusion: area where still considerable work needs to be done in coming year(s). Clear definition on role of IBs is required

9. EU-Regional Policy and Cohesion Structural Funds and Accession 9 ADMINISTRATIVE CAPACITY: MONITORING AND EVALUATION Evaluation culture needs to be developed Ex-ante evaluations delayed in some countries Monitoring system: exist, but mainly project based Monitoring Committees: all relevant partners should participate Computerised exchange of information: in early stages of development Conclusion: area where still considerable work is required in the future

10. EU-Regional Policy and Cohesion Structural Funds and Accession 10 ADMINISTRATIVE CAPACITY: FINANCIAL MANAGEMENT AND CONTROL Role of Paying Authority (PA) Central role for payments: MoF or State Treasury Financial plan: Obj. 1: 75% rate; Obj. 2/3: 50% rate Internal audit capacity Procedures and payment flows need to be tested before accession Financial control system needs to be operational before accession Conclusion: area where a lot of progress has been made (requirement chapters 21 and 28)

11. EU-Regional Policy and Cohesion Structural Funds and Accession 11 BUILDING INSTITUTIONAL CAPACITY SOME CONCLUSIONS Basic structures for Management and Financial Management and Control are present Designation and role of Intermediate Bodies is in process (project application flow!) HRD plans for additional staffing and training need to be approved and implemented a.s.a.p. (explore possibilities TA!) Allocation of HR should be in line with sub- delegation of tasks Tools (written procedures, guidelines, manuals) should guarantee accumulation of know how