Project implementation under DIS PRESENTATIONby Mr. Gábor Rónaszéki CFCU Hungary 30 November 2006

The Central Finance and Contracts Unit 1. CFCU Hungary 2. Financial management 3. Project management 4. Grant schemes management 5. PAO responsibilities

1. CFCU Hungary 1.Concept of CFCU Harmonised administration + economies of scale Harmonised administration + economies of scale More effective control by EC More effective control by EC Programme Authorising Officer Programme Authorising Officer 2. Creation 1 March March 1999 IB projects IB projects 3. Legal Status Legal person Legal person Total independence in professional field Total independence in professional field Semi independence in budgetary execution Semi independence in budgetary execution

1. CFCU Hungary 3. The Mission Project and Grant schemes management Project and Grant schemes management administrative management and surveillance of tendering and contracting procedures of programmes administrative management and surveillance of tendering and contracting procedures of programmes Contracting Authority Contracting Authority Monitoring Monitoring Training Training Financial management Financial management Approval of invoices/payment requests Approval of invoices/payment requests Executing money transfers Executing money transfers Conflictual position Conflictual position Beneficiaries (SPOs): successful projects Beneficiaries (SPOs): successful projects CFCU: successful projects implemented in line with rules CFCU: successful projects implemented in line with rules

1. CFCU Hungary Segregation of duties within the Hungarian Administration SPO: SPO: Ensuring project implementation at technical level Ensuring project implementation at technical level CFCU: CFCU: Overall responsibility of tendering and administrative implementation Overall responsibility of tendering and administrative implementation

2. Financial Management PHARE finances: double functional constraint Commission’s regulation for fund flow Commission’s regulation for fund flow Fund transfers through National Fund Fund transfers through National Fund Double Fund Request procedure Double Fund Request procedure Hungarian legislation for State Budget execution Hungarian legislation for State Budget execution PHARE funds appear in National Budget PHARE funds appear in National Budget Budgetary planning Budgetary planning Payments through Ministry’s account Payments through Ministry’s account Budgetary accounting at the Ministry Budgetary accounting at the Ministry Invoices made out to Ministry Invoices made out to Ministry

2. Financial Management Segregation of duties Segregation of duties SPO: ‘services rendered’ approval SPO: ‘services rendered’ approval CFCU: financial approval CFCU: financial approval Segregation of duties within the Financial Dept. Segregation of duties within the Financial Dept. Payments administrators – checking of invoices Payments administrators – checking of invoices Accounts administrators – execution of transfers Accounts administrators – execution of transfers Twinning managers – twinning budgetary management Twinning managers – twinning budgetary management Accounting Accounting

3. Project management Large scale sectoral projects Large scale sectoral projects Actors: NAC, NAO, SPOs, PAO, ECD Actors: NAC, NAO, SPOs, PAO, ECD Segregation of Duties Segregation of Duties programming programming tender preparation tender preparation tendering tendering tender evaluation and contracting tender evaluation and contracting contract implementation contract implementation monitoring monitoring

Segregation of Duties Programming Programming SPO: project fiche preparation SPO: project fiche preparation NAC: negotiation with EC NAC: negotiation with EC Tender preparation Tender preparation SPO: preparation of technical documents (ToR, TS, eligibility/evaluation criteria) SPO: preparation of technical documents (ToR, TS, eligibility/evaluation criteria) CFCU: preparation of TD CFCU: preparation of TD quality control of technical docs (experts) Approval: PAO – ECD Approval: PAO – ECD

Segregation of Duties Tendering Phase Tendering Phase SPO:technical input during clarification SPO:technical input during clarification organising clarification meetings and site visits delegating voting members CFCU:provides non-voting chairperson and secretary CFCU:provides non-voting chairperson and secretary secretary prepares TER and draft contracts Approval: PAO – ECD Approval: PAO – ECD Contracting: Contracting: ECD - SPO (Final Beneficiary) – CFCU – Contractor ECD - SPO (Final Beneficiary) – CFCU – Contractor

Segregation of Duties Contract Implementation SPO SPO technical responsibility of contract implementation technical responsibility of contract implementation CFCU CFCU administrative responsibility of contract implementation administrative responsibility of contract implementation close monitoring of implementation in order to interact on administrative ground in time close monitoring of implementation in order to interact on administrative ground in time PM is member of Steering Committees PM is member of Steering Committees ‘mediator’ in case of problems ‘mediator’ in case of problems ECD ECD Monthly meetings Monthly meetings JMCs JMCs

4. Grant schemes management Direct payment of non-commercial nature Direct payment of non-commercial nature Actors: see sectoral projects + TAO, Beneficiaries Actors: see sectoral projects + TAO, Beneficiaries Segregation of duties: see sectoral projects except for TAO: Segregation of duties: see sectoral projects except for TAO: Secretarial tasks, contact and information point for Beneficiaries, advisory capacity both for the implementing authorities and for the Beneficiaries Secretarial tasks, contact and information point for Beneficiaries, advisory capacity both for the implementing authorities and for the Beneficiaries Assistance to the SPO and the CFCU in monitoring Assistance to the SPO and the CFCU in monitoring 100% 1st round check of financial reports 100% 1st round check of financial reports NO DECISION RIGHTS! Can only make recommendations towards the SPO and the CFCU. NO DECISION RIGHTS! Can only make recommendations towards the SPO and the CFCU. Secondary procedures: CFCU as ex-ante authority Secondary procedures: CFCU as ex-ante authority

5. PAO RESPONSIBILITIES Ex-ante control: ECD (DIS) vs internal unit (EDIS) Ex-ante control: ECD (DIS) vs internal unit (EDIS) PAO and SPOs PAO and SPOs Conceptual question: co-responsibilities or delegated responsibility with supervision? Conceptual question: co-responsibilities or delegated responsibility with supervision?  Sole and overall responsibility of PAO vis-a-vis the Commission Extended supervision on SPOs defined in OM: Extended supervision on SPOs defined in OM: Internal procedures Internal procedures On-the-spot checks On-the-spot checks Quality assurance Quality assurance Bilateral legal agreements with all SPOs Bilateral legal agreements with all SPOs Declaration on Human and material resources available Declaration on Human and material resources available

Final advice Gain the confidence of the EC Delegation hard relationship anyway can be a useful support analysis of rejections

Contacts: Mr. Gábor Rónaszéki