1. Publicity and Transparency in Local Government – the Role of NAMRB Guinka Tchavdarova Executive Director of the National Association of Municipalities in the Republic of Bulgara 19 November 2015, Sofia Hotel Balkan

2. Conceptual (non)Compliances  legality  good financial management  transparency  independence and objectivity  competence and professionalism  Integrity and confidentiality  legality  objectivity  official principles  confidentiality  independence, objectivity and good faith  professionalism, integrity and impartiality  consistency and predictability  publicity and transparency  trust, cooperation and constructiveness National Audit Office The Public Financial Inspection Agency Systems for financial management and control Internal audit Municipal Budgets Act (repealed) To the interest of the local community legality expediency effectiveness efficiency publicity Act on the Public Finances comprehensiveness accountability and responsibility adequacy economizing efficiency effectiveness transparency sustainability legality Instead of an introduction

3. Specifics of the Municipalities as Audit Subject 265 municipalities– basic (and only) level of self-government with independent budget Citizens Main driving force of local government Participate in the management of the municipality – both through the bodies of local self-government elected by them and through referendum and general meeting of the population Have legal rights to participate in public discussions of the municipal budget, to be informed and to control Municipal council – collective elective body responsible for development policies adopts the municipal budget, carries out control and adopts the report on the fulfilment of the budget principal of municipal property determines the amount of local taxes and fees and prices of services Mayor of municipality - individual elective body of executive power organizes the development of the draft budget and its public discussion fulfills the municipal budget – first level budgetary spending unit responsible for implementation the internal financial management and control public procurement assignor

4. Audit and Control in Municipalities  Internal  Internal audit unit  Obligatory in all municipalities after 2006  Decreased scope in 2010 – only 46% of the municipalities (mostly with budgets exceeding 10 million leva) ! Formally transferred experts with «controller’s» mentality from the old central structures  Financial control – preventive and ex post  Systems for financial management and control – transition from formal rules and procedures to sound working mechanisms  Developed administrative capacity for ex post preventive control  Improved coordination in the municipalities  A working system for monitoring the process of managing the public funds  External  National Audit Office – useful recommendations and conclusions  PFIA – „barrier“ against illegal actions  PPA, MA of OP, AEUF – “financial corrections” – the hardest problem for the beneficiaries necessary or “unwanted” part of our lives

5. Results from Audits of Municipalities Certification of annual financial statements of 247 municipalities Audit opinion for certification unqualified (unmodified opinion)– 19 % Audit opinion for certification unqualified with remarks (unmodified opinion)– 57% Audit opinion for certification unqualified (qualified opinion)– 22% Refusal of certification – 2 % The most frequent weaknesses identified by compliance audits in the following areas - systems for financial management and control(SFMC), budget, assigning public procurement and property management Ineffective functioning of SFMC and ex-ante control Weak risk management Weak control over the trade companies and municipal revenue units Untimely update of internal regulations Wrong planned fee income without prepared analyses

6. Good Practices on Publicity and Transparency in the Management Widespread (in 80 to 100% from the municipalities) Active participation of the citizens in the meetings of the Municipal council Public discussions of the budget, report, debt, etc. Publishing on the municipality internet site, in local media and social networks Civil initiatives, fora and meetings of the population Public registries – municipal property, public procurement, conflict of interests Good municipal practices: Strategies for transparency and effectiveness – 30-40% from the municipalities Internal rules for transparency and publicity, Code of ethics – 50 - 70% Public and advisory committees – 60 - 80% Evaluation of consumer satisfaction – above 50% Budget focused on results– above 20% Youth parliaments – above 14% Ombudsman – above 13 %

7. The Role of the National Association of Municipalities „The voice” of the municipalities in Bulgaria – representative and defender of the interests of local authorities Annual negotiations with the Ministry of Finance Improvement of budget and fiscal legislation Consolidate public support on the decentralization reform Centre for services and municipal support : Creating a local legal framework Developing an expert and technical capacity Dissemination of good practices and innovative solutions For 20 years the National association of Municipalities is:

8. Annual fora Budget trainings (January) and National meeting of the financiers (June) The consultative elaboration of municipal budget which includes the most frequent omissions identified in audit reports by the control authorities and undertaking concrete practical measures Working with the elective authorities for improving the transparency, publicity and effectiveness of the local government – information, consultative materials, recommendations, financial benchmark Working with the lapses and weaknesses of the municipalities Trainings for financial experts (2013-2014) In the country for financial experts – 740 municipal employees National meetings and fora – over 1 000 participants in the European Institute of Public Administration Cost-benefit analysis – 205 participants Public procurement – 135 participants Administrative management- 170 participants Participation of audit and control authorities in municipal fora – 3-4 fora per year Contribution of the NAMRB – Measures and Impact

9. Consolidation of positions of the control authorities related to: Accountability and control, planning, spending and reporting issues Applying the Public Procurement Act EU funds management Reducing the workload of control teams by developing adequate software and electronic environment for exchange of public accessible information Evaluation of the draft-regulation’s impact, in order to safe public funds Identified Problems for future Solutions

10. Instead of conclusion… It is important to: be open for criticism and control accept the audit as tool for improving our activity require responsibility and react against corruption Thus: we can provide more effective management of the public funds and better life of our citizens

11. Thank you for your attention! http://www.namrb.org