1 Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey This project is co-financed by the European Union and the Republic of Turkey Sensitive posts management Irregularities Todor Yankulov,

2 This project is co-financed by the European Union and the Republic of Turkey Regulation 718/2007, Annex 1 Sensitive functions and conflicts of interest ensuring that staff in 'sensitive posts' are identified (i.e. those where the staff may become vulnerable to undue influence by the nature of their contacts with third parties or the information they have); ensuring that appropriate controls (including, where appropriate, rotation policies) are applied to sensitive posts; Sensitive posts

3 This project is co-financed by the European Union and the Republic of Turkey Sensitive posts management is a kind of risk management Identification of sensitive posts = identification of risks related with position because of its authority (decision making, access to information), its contacts (external factors), its nature (high level of expertise. Controls = mitigation measures Sensitive posts

4 This project is co-financed by the European Union and the Republic of Turkey Identifying areas / fields of activity which may be sensitive Financial management - Accounting (Bookkeeping of revenues), Execution of payments, Analysing financial reports Contract management - Participation to the tender evaluation meeting, Contracting, Monitoring the implementation Sensitive posts identification

5 This project is co-financed by the European Union and the Republic of Turkey Identifying areas / fields of activity which may be sensitive Human Resource Management - Recruitment’s decision, Appraisal IT Management, Application systems and controls, Systems security, Disaster recovery, System Development Sensitive posts identification

6 This project is co-financed by the European Union and the Republic of Turkey Identifying areas / fields of activity which may be sensitive Administration - Maintenance of a registration and filing system, Archiving, Registration of tender offers an issuance of tender receipts Sensitive posts identification

7 This project is co-financed by the European Union and the Republic of Turkey For each of the identified areas risk factors should be assessed Factors contributing to the sensitivity of a function: Decision-making capacity Capacity to influence decisions Relations with third parties outside the (Contractors, Beneficiaries, grantees, CFCU, EC Delegation etc.) Regular access to confidential information. High-level of specialised expertise Sensitive posts assessment

8 This project is co-financed by the European Union and the Republic of Turkey For each factor criteria for evaluation of the degree of sensitivity should be set Decision-making capacity High level - takes final decisions on issues for substantive function (payment/contracting) Middle level – has decision making functions at sub- function level / the decision have to be approved Low level – no decision making functions Sensitive posts assessment

9 This project is co-financed by the European Union and the Republic of Turkey For each factor criteria for evaluation of the degree of sensitivity should be set Capacity to influence decisions High level - has capacity to influence because of his authority Medium level – has capacity to influence because of his expertise, qualification Low level – low influence capacity because of cascade of decision layers over him/her Sensitive posts assessment

10 This project is co-financed by the European Union and the Republic of Turkey For each factor criteria for evaluation of the degree of sensitivity should be set Relations with third parties outside the (Contractors, Beneficiaries, grantees, CFCU, EC Delegation etc.) High level - Direct contacts allowing to abuse with information Medium level – Direct contacts but now opportunity to abuse with information Low level – No direct contacts Sensitive posts assessment

11 This project is co-financed by the European Union and the Republic of Turkey For each factor criteria for evaluation of the degree of sensitivity should be set Regular access to confidential information. High level - Direct access, has the opportunity to change it Medium level – Direct access, but only to read Low level – No direct access Sensitive posts assessment

12 This project is co-financed by the European Union and the Republic of Turkey For each factor criteria for evaluation of the degree of sensitivity should be set High-level of specialised expertise High level - Has expertise that makes him/her “irreplaceable” Medium level – expert in his area but could be replaced / checked by other officials Low level – Not highly specialized Sensitive posts assessment

13 This project is co-financed by the European Union and the Republic of Turkey An “interpretation” of the results is needed – what results mean “sensitive” All posts in the predefined areas / fields of activities have to be assessed based on these factors and criteria After the sensitive posts are identified the existing measures have to be identified also and assessed Sensitive posts assessment

14 This project is co-financed by the European Union and the Republic of Turkey Based the existing measures assessment the residual “sensitivity” is assessed If at this stage some posts are still sensitive new measures could be designed The process have to be performed annually Sensitive posts assessment

15 This project is co-financed by the European Union and the Republic of Turkey Possible mitigation measures Rotation plan “Four eye” principle Double checks Ex-post check Channels for whistle-blowing Audits Sensitive posts assessment

16 This project is co-financed by the European Union and the Republic of Turkey IRREGULARITIES IRREGULARITIES

17 This project is co-financed by the European Union and the Republic of Turkey ‘Irregularity’ any infringement of a provision of EC or national legislation and contracts resulting from an act or an omission by any natural or legal person which has, or would have, the effect of prejudicing the general budget of the European Union by charging an unjustified item of expenditure to the general budget Irregularities

18 This project is co-financed by the European Union and the Republic of Turkey ‘Irregularity’ any intentional act or omission relating to: the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on behalf of, the European Communities, Irregularities

19 This project is co-financed by the European Union and the Republic of Turkey Type of irregularities "Systemic" irregularities – They occur because of anomalies in the management and control systems and could be spread over a number of projects "Individual" irregularity - These are irregularities that arise from the behavior of an individual in a single project Irregularities

20 This project is co-financed by the European Union and the Republic of Turkey ‘Systemic irregularities’ There is no adequate system to carry out on-the-spot checks Systems for recording and archiving are not enough effective or are not in compliance with EU or national legislation Irregularities

21 This project is co-financed by the European Union and the Republic of Turkey ‘Individual irregularities’ Violations of procurement rules Violation of the eligibility criteria Costs outside the scope of the project Non compliance with the budget Irregularities

22 This project is co-financed by the European Union and the Republic of Turkey ‘Individual irregularities’ Incorrect accounting Non implementation of control Double funding Conflict of interest Irregularities

23 This project is co-financed by the European Union and the Republic of Turkey ‘Individual irregularities’ Fake documents Overpayment The financed assets are missing Using an investment not as intend to be Irregularities

24 This project is co-financed by the European Union and the Republic of Turkey ‘Individual irregularities’ Failure to comply with publicity requirements Pressures on administrative staff in connection with the receipt of proposals "on time“ Pressure / manipulation of a member of Evaluation committee (via a conflict of interest, fraud, corruption) - affect the evaluation of proposals, decisions, etc. Irregularities

25 This project is co-financed by the European Union and the Republic of Turkey ‘Individual irregularities’ Corruption of officials of the OS Manipulating project proposals (replacement of documents after the receipt and registration) Manipulating of registers Irregularities

26 This project is co-financed by the European Union and the Republic of Turkey ‘Individual irregularities’ Falsification / modification of accounts and / or other accounting documents Making supplies, services and works with lower than the agreed quality Irregularities

27 This project is co-financed by the European Union and the Republic of Turkey ‘Individual irregularities’ Invoicing of services or works non-delivered Invoicing of funds from fictitious companies Duplicate invoices Irregularities

28 This project is co-financed by the European Union and the Republic of Turkey ‘Individual irregularities’ Manipulating findings of documentary checks Manipulation of the findings of site inspections Irregularities

29 This project is co-financed by the European Union and the Republic of Turkey ‘Individual irregularities’ Manipulating findings of documentary checks Manipulation of the findings of site inspections Irregularities

30 This project is co-financed by the European Union and the Republic of Turkey Preventive controls Establish written procedures covering all key aspects of management and control systems Ensure separation of duties and responsibilities Establishment of adequate ex-ante control before approval, payment Establish an adequate monitoring system Establishing an adequate audit trail Irregularities

31 This project is co-financed by the European Union and the Republic of Turkey Detective controls Documentary checks - for example, in the absence of documents proving the expenditures On-the-spot checks – in case of declared but undelivered goods / services Internal or external audits On signals - from internal or external control bodies, media or individuals. Irregularities

32 This project is co-financed by the European Union and the Republic of Turkey Thank you for your attention! Questions/Discussions