Project implementationProject implementationunder DISunder DIS

PRESENTATION PRESENTATION

byby

Mr. Gábor RónaszékiMr. Gábor Rónaszéki

CFCU HungaryCFCU Hungary

30 November 200630 November 2006

The Central Finance and The Central Finance and Contracts UnitContracts Unit

1. CFCU Hungary1. CFCU Hungary2. Financial management2. Financial management3. Project management3. Project management4. Grant schemes management4. Grant schemes management5. PAO responsibilities5. PAO responsibilities

1. 1. CFCU HungaryCFCU Hungary

1.Concept of CFCU1.Concept of CFCU Harmonised administration + economies of scaleHarmonised administration + economies of scale More effective control by ECMore effective control by EC Programme Authorising OfficerProgramme Authorising Officer

2. Creation2. Creation 1 March 19991 March 1999 IB projectsIB projects

3. 3. Legal StatusLegal Status Legal personLegal person Total independence in professional fieldTotal independence in professional field Semi independence in budgetary executionSemi independence in budgetary execution

1. 1. CFCU HungaryCFCU Hungary3. 3. The MissionThe Mission Project and Grant schemes managementProject and Grant schemes management

administrative management and surveillance of administrative management and surveillance of tendering and contracting procedures of tendering and contracting procedures of programmesprogrammes

Contracting AuthorityContracting Authority MonitoringMonitoring TrainingTraining

Financial managementFinancial management Approval of invoices/payment requestsApproval of invoices/payment requests Executing money transfersExecuting money transfers

Conflictual positionConflictual position Beneficiaries (SPOs): successful projectsBeneficiaries (SPOs): successful projects CFCU: successful projects implemented in line CFCU: successful projects implemented in line

with ruleswith rules

1. 1. CFCU HungaryCFCU Hungary

Segregation of duties within the Segregation of duties within the Hungarian AdministrationHungarian Administration

SPO:SPO: Ensuring project implementation at Ensuring project implementation at

technical leveltechnical level CFCU:CFCU:

Overall responsibility of tendering and Overall responsibility of tendering and administrative implementationadministrative implementation

FM TotalMEUR

CFCUMEUR

%

1998 67,8 54,5 80%

1999 104,8 49,3 47%

2000 89,6 69,5 78%

2001 109,9 51,4 47%

2002 132,8 70,5 53%

2003 101,7 35,8 35%

Total 538,8 276,5 51%

National Programmes

1. CFCU Hungary

2. Financial Management2. Financial ManagementPHARE financesPHARE finances: double functional : double functional

constraintconstraint Commission’s regulation for fund flowCommission’s regulation for fund flow

Fund transfers through National FundFund transfers through National Fund Double Fund Request procedureDouble Fund Request procedure

Hungarian legislation for State Budget Hungarian legislation for State Budget executionexecution

PHARE funds appear in National BudgetPHARE funds appear in National Budget Budgetary planningBudgetary planning Payments through Ministry’s accountPayments through Ministry’s account Budgetary accounting at the MinistryBudgetary accounting at the Ministry Invoices made out to MinistryInvoices made out to Ministry

Supplier/Beneficiary

Budgetary SPO/

Department Phare office

HungarianNational

Bank

document flow accompanying paymentsfund flow

National Fund(Ministry of Finance)

Hungarian State Treasury

Foreign Currency Transactions Dept.

FLOW OF PHARE FUNDS

Implementing

Hungarian State Treasury

Task Financing Dept.

Line Ministry

CFCUState Treasury

European Commission

Transfer EUR

Transfer EUR

Transfer HUF

Invoice

Invoice + supp. docs

Invoice + supp. docs

Fund controlRegistering

Advance

EUR Transfer Order

Transfer EUR

Advance

2. Financial Management2. Financial Management Segregation of dutiesSegregation of duties

SPO: ‘services rendered’ approvalSPO: ‘services rendered’ approval CFCU: financial approvalCFCU: financial approval

Segregation of dutiesSegregation of duties within the Financial within the Financial Dept.Dept. PaPayments administrators – checking of invoicesyments administrators – checking of invoices Accounts administrators – execution of Accounts administrators – execution of

transferstransfers Twinning managers – twinning budgetary Twinning managers – twinning budgetary

managementmanagement AccountingAccounting

3. 3. Project managementProject management

Large scale sectoral projectsLarge scale sectoral projects Actors: NAC, NAO, SPOs, PAO, ECDActors: NAC, NAO, SPOs, PAO, ECD Segregation of DutiesSegregation of Duties

programmingprogramming tender preparationtender preparation tenderingtendering tender evaluation and contractingtender evaluation and contracting contract implementationcontract implementation monitoringmonitoring

Segregation of DutiesSegregation of Duties

ProgrammingProgramming SPO: project fiche preparationSPO: project fiche preparation NAC: negotiation with ECNAC: negotiation with EC

Tender preparationTender preparation SPOSPO: : preparation of technical documents preparation of technical documents

((ToR, TS, eligibility/evaluation criteriaToR, TS, eligibility/evaluation criteria)) CFCU: CFCU: preparation of preparation of TDTD

quality controlquality control of of technical technical docsdocs (experts)(experts)

Approval: PAO – ECDApproval: PAO – ECD

Segregation of DutiesSegregation of Duties Tendering PhaseTendering Phase

SPOSPO:: technical input during clarification technical input during clarification organiorganissing clarification meetings ing clarification meetings

and site and site visitsvisitsdelegating voting membersdelegating voting members

CFCUCFCU:: provides non-voting chairperson provides non-voting chairperson and and secretarysecretary

secretary prepares TER and secretary prepares TER and draft contractsdraft contracts

Approval: PAO – ECD Approval: PAO – ECD Contracting:Contracting:

ECD - SPO (Final Beneficiary) – CFCU – ECD - SPO (Final Beneficiary) – CFCU – ContractorContractor

Segregation of DutiesSegregation of DutiesContract ImplementationContract Implementation SPO SPO

technical responsibility of contract technical responsibility of contract implementationimplementation

CFCUCFCU administrative responsibility of contract administrative responsibility of contract

implementationimplementation close monitoring of implementation in order to close monitoring of implementation in order to

interact on administrative ground in timeinteract on administrative ground in time PM is member of Steering CommitteesPM is member of Steering Committees

‘‘mediator’ in case of problemsmediator’ in case of problems ECDECD

Monthly meetingsMonthly meetings JMCsJMCs

4. Grant schemes 4. Grant schemes managementmanagement

Direct payment of non-commercial natureDirect payment of non-commercial nature Actors: see sectoral projects + TAO, Actors: see sectoral projects + TAO,

BeneficiariesBeneficiaries Segregation of duties: see sectoral projects Segregation of duties: see sectoral projects

except for TAO:except for TAO: Secretarial tasks, contact and information point for Secretarial tasks, contact and information point for

Beneficiaries, advisory capacity both for the Beneficiaries, advisory capacity both for the implementing authorities and for the Beneficiariesimplementing authorities and for the Beneficiaries

Assistance to the SPO and the CFCU in monitoringAssistance to the SPO and the CFCU in monitoring 100% 1st round check of financial reports100% 1st round check of financial reports NO DECISION RIGHTSNO DECISION RIGHTS! Can only make ! Can only make

recommendations towards the SPO and the CFCU.recommendations towards the SPO and the CFCU. Secondary procedures: CFCU as ex-ante Secondary procedures: CFCU as ex-ante

authorityauthority

5. PAO 5. PAO RESPONSIBILITIESRESPONSIBILITIES

Ex-ante control: ECD (DIS) vs internal unit Ex-ante control: ECD (DIS) vs internal unit (EDIS)(EDIS)

PAO and SPOsPAO and SPOs Conceptual Conceptual questionquestion: co-responsibilities : co-responsibilities oror

delegated responsibility with supervisiondelegated responsibility with supervision? ?

Sole and overall responsibility of PAO vis-a-vis Sole and overall responsibility of PAO vis-a-vis the Commissionthe Commission

Extended supervision on SPOs defined in OM:Extended supervision on SPOs defined in OM: Internal proceduresInternal procedures On-the-spot checksOn-the-spot checks Quality assuranceQuality assurance Bilateral legal agreements with all SPOsBilateral legal agreements with all SPOs Declaration on Human and material resources Declaration on Human and material resources

availableavailable

Final adviceFinal advice

Gain the confidence of the EC Gain the confidence of the EC DelegationDelegation

hard relationship anywayhard relationship anyway

can be a useful supportcan be a useful support

analysis of rejectionsanalysis of rejections

Contacts:Contacts:

Mr. Gábor RónaszékiMr. Gábor Rónaszéki

+36 1 327 2800+36 1 327 2800

ronaszeki.gabor@cfcu.gov.huronaszeki.gabor@cfcu.gov.hu