REGIONAL COMPETITIVENESS REGIONAL COMPETITIVENESS OPERATIONAL PROGRAMMEOPERATIONAL PROGRAMME

1010THTH SECTORAL MONITORING COMMITTEE SECTORAL MONITORING COMMITTEE MEETINGMEETING

27 June 2012 – Ankara

1.Opening statements – by the Head of the Operating Structure, and by the Commission (HoS + EC)2.Approval of the Minutes of the last meeting and the agenda of the Meeting (HoS + EC)3.Information on the Annual Audit Activity Report for the RCOP (Audit Authority)4.Information on programming (OS)- 1st project package- 2nd project package- 3rd project package (OS+EIF)- 4th project package5.Information on implementation (OS)- Tendering and contracting- Implementation-Absorption (n+3), procurement plans and disbursement forecasts-Updated payment forecast and payment cycle for 2012 (OS+NAO)6. Information on technical assistance and communication activities (OS)7. Monitoring activities (OS)-Discussion and Endorsement of 2011 Sectoral Annual Implementation Report-Information on Monitoring Report and Monitoring Sheets 8. Information on Accreditation of Finance and Contracts Unit in RCP CID and follow-up of conferral of management audit findings of the DG REGIO (OS+EC)9.Information on the revision and extension of the Operational Program for years 2012/2013 (OS +EC+ Strategic Coordinator)10. Indicative date for the next Sectoral Monitoring Committee (HoS + EC) 11. AOB

AgendaFor the 10th Sectoral Monitoring Committee Meeting

For the Regional Competitiveness Operational Programme in Turkey(27 June 2012, 13:30)

PROGRAMMINGPROGRAMMING-1st project package1st project package-2nd project package2nd project package-3rd project package3rd project package-4th project package4th project package

SSTATE OF PLAY OF TATE OF PLAY OF THE 1st PACKAGE THE 1st PACKAGE of of PROJECTSPROJECTS UNDER THE RCOP UNDER THE RCOP

1st Package of Project

TOTAL BUDGET: 98.100.205 €

1st Package of Project

First Submission of the Documents – 26.02.2010 Admissibility Letter – 23.04.2010 Comments from the EC – 11.10.2010 Second Submission of the Documents – 29.07.2011 Comments from the EC – 22.03.2012 Third Submission of the Documents – July 2012

SSTATE OF PLAY TATE OF PLAY IIN SECOND N SECOND PROJECT PACKAGE PROJECT PACKAGE

SECOND PROJECT PACKAGE - STATE OF PLAY

1- Business Development Center2- Big partnership of small enterprises 3- Hazelnut Licensed Warehouse and Spot Exchange4- Strengthening the Infrastructure for Furniture Production5- Tea Research and Application Centre6- My Bee, My Honey, My Honeycomb

Name of Proposal Submission Date Approval Date

26 . 10. 2010 23.11.2010

7- Sustainable Tourism Development 7- Sustainable Tourism Development

Location

VanTokat

Giresun

Kayseri

RizeOrdu

MardinMardin 08.02.201108.02.2011 03.03.201103.03.2011

8- Establishment of Cereals Exchange and Licensed Warehouse 9-Hand-“Made in Hatay” 10-Establishment of a “CuF” for Industrial Forestry Products 11- Impr. of the Shared Industrial Infr. of the Pistachio Pros.Sector 12- Increasing Competitiveness of Middle Black Sea Region (TR83) 13- Establishment of a CuF for Furniture and Mechanics

Ş.Urfa

HatayKastamonu

Siirt

Samsun

Amasya

01.03.2011

04.05.2011

13.06.201118.04.2011

18.06.2011

03.11.2011

03.11.2011

SECOND PROJECT PACKAGE - STATE OF PLAY

Name of Proposal Submission Date

Approval DateLocation

16- Natural Stone Manufacturing and Marketing Support Centre

Gaziantep 13.05.2011 17.01.2012

Budget Total : 163.600.231 €

14- Regional Industrial Collaboration in Cotton Fibre Manufacturing Laboratory

Diyarbakır 13.05.2011 18.07.2011

15- Samsun Metals Metrology and Calibration Laboratory

Samsun 08.06.2011 03.11.2011

17- Regional Industrial Design and Modeling Centre

Bayburt 20.04.2011 04.11.2011

18- Osmaniye Enterprise Development Center (İŞGEM) Osmaniye 05.01.2012

23.03.2012-by e-mail

19- Maraş Pepper Cluster

20- Activation of “Specialty Foods Cluster” in “GAP Region”

K.Maraş 24.04.2012 14.05.2012-by e-mail

15.06.2012-by e-mail

Ş.Urfa-İzmir 19.01.2012

21- Sorgun Enterprise Development Center (İŞGEM)

22.06.2012-by e-mail

Sorgun/Yozgat

18.05.2012

22- Yeniçam Shipyard CuF21.06.2012-by e-mail

Trabzon 04.05.2012

SECOND PROJECT PACKAGE – PLANNING

Name of Proposal Location

ÇankırıÇankırı

Indicative Budget : ~ 34.837.566 €

23- Karatekin University – SETEM23- Karatekin University – SETEM

24- Marble Production Common Use Facility 24- Marble Production Common Use Facility

25- Enterprise Development Center25- Enterprise Development Center

26- Whey Powder Production Facility26- Whey Powder Production Facility

AmasyaAmasya

ElazığElazığ

TrabzonTrabzon

Status

Waiting ERA’s

response

Waiting ERA’s

response

Waiting ERA’s

response

Waiting ERA’s

response

Waiting EC’s comments

Waiting EC’s comments

Waiting EC’s

comments

Waiting EC’s

comments

Submission Date

26.11.201126.11.2011

18.05.201218.05.2012

28.05.201228.05.2012

02.05.201202.05.2012

SECOND PROJECT PACKAGE – PLANNING

27- Aydınlar Tourism Promotion Project28- FIKAP29- Investment Promotion Center30- Atatürk University – Technology Oriented Supp. Cen.31- Apricot Valley and Green Energy Storage Facility32- Winter Tourism Center33- Enterprise Development Center34- Milk Processing CuF35- Olive oil CuF36- Mount Pamuk Highland Tourism37- Kommagene – Nemrut Tourism Development38- İshakpaşa Palace Tourism Promotion Project 39- Enterpreneurship Consultancy Center40-Increasing the Regional Competitiveness in Kars, Ağrı, Ardahan and Iğdır41- Bafra Business Dev. Cent.

27- Aydınlar Tourism Promotion Project28- FIKAP29- Investment Promotion Center30- Atatürk University – Technology Oriented Supp. Cen.31- Apricot Valley and Green Energy Storage Facility32- Winter Tourism Center33- Enterprise Development Center34- Milk Processing CuF35- Olive oil CuF36- Mount Pamuk Highland Tourism37- Kommagene – Nemrut Tourism Development38- İshakpaşa Palace Tourism Promotion Project 39- Enterpreneurship Consultancy Center40-Increasing the Regional Competitiveness in Kars, Ağrı, Ardahan and Iğdır41- Bafra Business Dev. Cent.

Name of Proposal Estimated Submission Date

3rd Quarter of 2012

3rd Quarter of 2012

Location

Indicative Budget : ~ 47.965.288 €

SiirtGiresunYozgat

Erzurum

Malatya

Ardahan

K.MaraşKars

G.AntepIğdır

AdıyamanAğrıBitlis

Kars, Ağrı, Ardahan, IğdırSamsun-Bafra

SiirtGiresunYozgat

Erzurum

Malatya

Ardahan

K.MaraşKars

G.AntepIğdır

AdıyamanAğrıBitlis

Kars, Ağrı, Ardahan, IğdırSamsun-Bafra

SSTATE OF PLAY TATE OF PLAY IIN N THIRDTHIRDPROJECT PACKAGE PROJECT PACKAGE

THIRD PROJECT PACKAGE - STATE OF PLAY

Results as of May 2012

• Total Volume: ~ EUR 310 million

• Total Number of Loans: >3,500

• Total Number of SMEs: >3,500

Results vs Objectives

• Portfolio of EUR 310m• 62% of the target EUR 500m

• Number of SMEs reached surpassed the target of 2,500 by 50%

Regional Breakdown of Loans*

* As of end of 2011

PROGRESS PROGRESS IN 1ST 2ND AND 3RD PACKAGEIN 1ST 2ND AND 3RD PACKAGE

PROGRESS PROGRESS BY PRIORITY AXES IN 1ST 2ND AND 3RD PACKAGEBY PRIORITY AXES IN 1ST 2ND AND 3RD PACKAGE

Priority 1: Improvement of Business Environment (349.794.316 €)

Priority 2: Strengthening of Enterprise Capacity and Foster Entrepreneurship (32.846.459€)

PROGRESS PROGRESS BY PRIORITY AXES IN 1ST 2ND AND BY PRIORITY AXES IN 1ST 2ND AND 3RD PACKAGE3RD PACKAGE

SSTATE OF PLAY TATE OF PLAY IIN N THE FOURTHTHE FOURTHPROJECT PACKAGE PROJECT PACKAGE

OVERVIEW of FOURTH OVERVIEW of FOURTH PROJECT PACKAGEPROJECT PACKAGE

CRITERIA APPLIED FOR IDENTIFICATION OF PROJECT Alignment with objectives of the RCOPPotential regional impact of the project idea on competitivenessOriginality of the project ideaMaturity of the ideaProvince not previously covered by 1st and 2nd package projectsNew project idea; ie not overlapping in concept or region with 1st or second package

Received Project Ideas : 107Long Listed Project Ideas: 23

Shortlisted Projects: 12 (including 1 major project)

PRIORITIZED LIST OF PROJECTS IN 4TH PACKAGE (IND. 90.000.000 € )PRIORITIZED LIST OF PROJECTS IN 4TH PACKAGE (IND. 90.000.000 € )

# Project Title Place of Implementation Applicant Measure Budgets

1 Processing and Storing of Sea Food SinopKUZKA

1.1 8.500.000

2 Şanlıurfa Cotton Licensed Warehouse Project

ŞanlıurfaTOBB

1.1 7.147.000

3 Samsun Logistics Center SamsunTOBB

1.1 25.000.000

4 Turkish Cluster Academy N/ABSTB-OSBGM

2.2 4.500.000

5 The Common Use Workshop Project Bitlis, Hakkâri, Muş, Van DAKA 1.1 4.668.645

6 Shoe-making Training and Design Centre and Shared-use Workshop

Hatay DOĞAKA 1.3 5.471.000

7Establishment of a Business Development Center in Gümüşhane

Gümüşhane DOKA 1.1 6.000.000

8 Establishment of Business Incubator (İŞGEM) in Bingöl

Bingöl FKA 1.1 2.158.044

9 Carpet Incubator Centre Gaziantep İKA 1.3 5.000.000

10 Establishment of Nanotechnology and Nonwoven R&D Centre

Gaziantep İKA 1.3 5.000.000

11 Sivas Industry Incubator Center Project (ISGEM)

Sivas ORAN 1.1 6.137.800

12 “Kars City with its historical identity” project

Kars SERKA 1.4 9.500.000

TIMELINE FOR the 4TH PACKAGE

IIMPLEMENTATMPLEMENTATIIONON-Tendering and contractingTendering and contracting-ImplementationImplementation-Absorption (n+3), procurement plans and disbursement Absorption (n+3), procurement plans and disbursement forecastsforecasts-Updated payment forecast and payment cycle for 2012Updated payment forecast and payment cycle for 2012

Tendering and ContractingTendering and Contracting

RealisedRealised and Foreseen Number and Foreseen Number of Signedof Signed ContractsContracts, , component component

basedbased

*Until the end of 2014 foreseen budget that will contracted is 246m €

Realised and Realised and ForeseenForeseen Contracted BudgetContracted Budget

FinalizedFinalized ContractsContracts

  Totally 7 contracts

 Type of Contracts

Works SupervisionTechnical assistance

/ FW Supply

Total(euros)

Number of Contracts

0 0 2 5 7

Budget(euros) 0 0 187.968 865.470 1.053.438

Contracts under Implementation Contracts under Implementation

  Totally 15 contracts

 Type of Contracts

Works SupervisionTechnical

assistance Supply DirectGrant Total

(euros)

Number of Contracts

6 4 3 0 2 15

Budget(euros) 18.162.683 1.947.225 15.989.195 0 48.300.000 84.399.103

Projects coming to Implementation Projects coming to Implementation   Totally 28 projects / 83 components

 Type of Components

Works SupervisionTechnical

assistance Supply

Budget(euros)

2012 0 0 3 0 4.432.036

1st Q / 2013 2 3 3 2 26.822.545

2nd Q / 2013 12 15 5 3 50.592.372

3rd Q / 2013 4 0 2 7 36.717.659

4th Q / 2013 0 0 4 3 14.020.403

2014 0 0 6 9 27.975.263

Total no of components

18 18 23 24

160.560.278Budget

(euros) 61.178.075 7.405.160 41.597.087 50.379.956

DISBURSEMENT FORECAST AND N+3 GAP FOR RCOP 2007-2011 PROGRAMMING PERIOD

* 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 TOTAL PRIORITY I 27,200,000 13,855,000 6,718,252 51,982,388 67,065,309 11,153,999 2,676,148 0 180,651,096

Measure 1.1. 0 0 2,644,052 27,477,556 46,988,479 7,834,146 1,828,646 86,772,879Measure 1.2. 27,200,000 13,855,000 0 0 0 0 0 41,055,000Measure 1.3. 0 0 4,074,200 18,207,035 13,024,924 1,726,136 700,520 37,732,815Measure 1.4. 0 0 0 6,297,797 7,051,906 1,593,717 146,982 15,090,402PRIORITY II 0 1,219,338 2,366,813 5,079,181 5,592,532 473,317 96,465 0 14,827,646

Measure 2.1. 0 380,537 1,147,500 2,837,093 1,792,228 0 0 6,157,358Measure 2.2. 0 838,801 1,219,313 2,242,088 3,800,304 473,317 96,465 8,670,288

PRIORITY III 59,577 1,636,302 1,522,757 3,781,209 1,579,535 428,400 0 9,007,780

Measure3.1. 59,577 1,636,302 1,165,757 3,281,409 1,079,735 0 0 7,222,780Measure 3.2. 0 0 357,000 499,800 499,800 428,400 0 1,785,000TOTAL (per year)

TOTAL (cumulative) 27,259,577 43,970,217 54,578,039 115,420,817 189,658,193 201,713,909 204,486,522 204,486,522 204,486,522

Allocated fund for RCOP 41,900,000 43,500,000 54,800,000 71,430,000 88,020,000 299,650,000

N+3 Expenditure Requirements (per year)

41,900,000 43,500,000 54,800,000 71,430,000 88,020,000 299,650,000

Pre-finance* 42,060,000 22,215,000 64,275,000

Expenditure paid and declared cumulative*

-160,000 21,125,000 75,925,000 147,355,000 235,375,000 235,375,000 235,375,000 299,650,000 299,650,000

N+3 Gap (differences in line 18-22) 27,419,577 22,845,217 -21,346,961 -31,934,183 -45,716,807 -33,661,091 -30,888,478 -95,163,478 -95,163,478

Disbursement Forecast (EU Contribution) - June

27,259,577 16,710,640 10,607,822 60,842,778 74,237,376 12,055,716 2,772,613 204,486,522

DISBURSEMENT FORECAST AND N+3 GAP FOR RCOP 2007-2013 PROGRAMMING PERIOD

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 TOTAL PRIORITY I 27,200,000 13,855,000 6,718,252 51,982,388 67,065,309 11,153,999 2,676,148 0 180,651,096

Measure 1.1. 0 0 2,644,052 27,477,556 46,988,479 7,834,146 1,828,646 86,772,879Measure 1.2. 27,200,000 13,855,000 0 0 0 0 0 41,055,000Measure 1.3. 0 0 4,074,200 18,207,035 13,024,924 1,726,136 700,520 37,732,815Measure 1.4. 0 0 0 6,297,797 7,051,906 1,593,717 146,982 15,090,402PRIORITY II 0 1,219,338 2,366,813 5,079,181 5,592,532 473,317 96,465 0 14,827,646

Measure 2.1. 0 380,537 1,147,500 2,837,093 1,792,228 0 0 6,157,358Measure 2.2. 0 838,801 1,219,313 2,242,088 3,800,304 473,317 96,465 8,670,288

PRIORITY III 59,577 1,636,302 1,522,757 3,781,209 1,579,535 428,400 0 9,007,780

Measure3.1. 59,577 1,636,302 1,165,757 3,281,409 1,079,735 0 0 7,222,780Measure 3.2. 0 0 357,000 499,800 499,800 428,400 0 1,785,000OHTER (non approved project)

0 0 17,000,000 0 30,000,000 70,000,000 55,404,165 172,404,165

1st PP 0 0 0 0 10,000,000 10,000,000 5,404,165 25,404,165

2nd PP 0 0 0 0 20,000,000 60,000,000 50,000,000 130,000,000

3rd PP 17,000,000 17,000,000TOTAL (per year)

TOTAL (cumulative) 27,259,577 43,970,217 71,578,039 132,420,817 236,658,193 318,713,909 376,890,687 376,890,687 376,890,687

Allocated fund for RCOP 41,900,000 43,500,000 54,800,000 71,430,000 88,020,000 89,016,597 91,720,588 480,387,185

N+3 Expenditure Requirements (per year)

41,900,000 43,500,000 54,800,000 71,430,000 88,020,000 89,016,597 91,720,588 0 480,387,185

Pre-finance* 42,060,000 22,215,000 64,275,000

Expenditure paid and declared cumulative

-160,000 21,125,000 75,925,000 147,355,000 235,375,000 324,391,597 416,112,185 480,387,185 480,387,185

N+3 Gap (differences in line 18-22) 27,419,577 22,845,217 -4,346,961 -14,934,183 1,283,193 -5,677,688 -39,221,498 -103,496,498 -103,496,498

Disbursement Forecast (EU Contribution) -June

27,259,577 16,710,640 27,607,822 60,842,778 104,237,376 82,055,716 58,176,778 376,890,687

MONTHLY EXPENDITURE FORECAST FOR 2012

EU Contr. TR Contr. TOTALJanuary 0 0 0February 0 0 0March 0 0 0April 51,311 10,674 61,985May 981,840 177,640 1,159,480June 1,297,328 271,153 1,568,481July 822,723 157,596 980,319August 595,000 105,000 700,000September 17,947,566 3,167,218 21,114,784October 2,385,050 468,251 2,853,301November 1,884,076 377,071 2,261,147December 1,642,928 337,484 1,980,412TOTAL 27,607,822 5,072,087 32,679,909

TECHNICAL ASSISTANCE ACTIVITIESTECHNICAL ASSISTANCE ACTIVITIES

-TeTechnical Assistance Plan (2012 – 2017)chnical Assistance Plan (2012 – 2017)-Technical Technical AAssistance on ssistance on IInstitutional nstitutional BBuilding for the uilding for the IImplementation of mplementation of RCOPRCOP

Technical Assistance Plan (TAP) Technical Assistance Plan (TAP) 2012-20172012-2017

Preparation of TAP was started in December 2011.

Taking into account comprehensive needs identification carried out in the RCP-CID, where all the departments identified their needs for TA

Taking into account training need analysis of ERA

Approved by the Commision in 10 May 2012.

CONTRACTS UNDER 2012 - 2017 TECHNICAL ASSISTANCE PLAN

No MEASURE 

CONTRACTS 

TYPE OF CONTRACT

Expected starting date

Expected completion

date

INDICATIVE BUDGET(Euro)

Total Ind. Budget

EU NATIONAL

1 3.1.

TA to RCP-CID (Technical Assistance and Capacity Building for Further Strengthening of RCP CID in its Operations)

Service  Q2 2013 Q4 2015 3.800.000 3.230.000 570.000

2 3.1. TA to RCP-CID II Service  

Q4 2015 Q2 2017 1.100.000 935.000 165.000

3 3.1.Project Preparation Facility

Service  Q1 2014 Q4 2016 3.200.000 2.720.000 480.000

4 3.1. TA for MIS Service  Q2 2015 Q2 2017 900.000 765.000 135.000

5 3.1. MIS Supply Project Supply  Q1 2016 Q2 2016 250.000 212.500 37.500

6 3.1.Supply of Equipment for RCP-CID

Supply  Q3 2013 Q4 2013 250.000 212.500 37.500

7 3.1.TA to RCP-CID (FWC, Direct Financing of expenditures, etc.)

Service  Q3 2012 Q4 2013 1.195.438 1.016.122 179.316

8 3.2.TA for Publicity and Visibility

Service  Q3 2015 Q1 2017 1.832.353 1.557.500 274.853

TOTAL 12.527.791 10.648.622 1.879.169

Main activities January - June 2012Main activities January - June 2012

Support to the hand-over process from CFCU to RCP-CID after succesfull Accreditation Process (February 2012)

Support to preperation of TA Plan (2012-2017)

Support to pipeline development (4th Package)

Preparation of Tender Dossiers

Training and capacity building

Study tours to Poland and Spain

Technical Technical AAssistance on ssistance on IInstitutional nstitutional BBuilding uilding for the for the IImplementation of mplementation of RCOPRCOP

Training and capacity buildingTraining and capacity building

Capacity building to RCP-CID:

Quality Assurance and Risk management training for new staff

Project Development Training course (16-18 January 2012)Project Pipeline Management (20-25 February 2012)Publicity and Visibility (13 April 2012)FIDIC Training workshop (29-30 March 2012) Training of trainers (13-14 June, 20-21 June 2012)Internal workshops on budgeting, contracting, payment

procedures and financial reporting

Training and capacity buildingTraining and capacity building Capacity building to end-recipients:

− Guidelines for ERAS (End-Recipients) designed and under revision− First training for national ERAs (first package) delivered: 28 May to 01 June

2012

Study tour to Study tour to Poland and Spain Poland and Spain Study Tour for FCD to Polandprepared and delivered 14 – 18 May 2012

Study Tour for ProgrammingDepartment to Spain preparedand delivered 21 – 25 May 2012

Main activities planned for July to Main activities planned for July to December 2012December 2012Revision of RCP-CID manual, systems and tools

Support to preparation of Technical Documents within the new TA Plan (2012-2017)

Preparation of Tender DossiersOrganization of one Study tour and internships

Support to pipeline development to Programming Department

Support to FCD

Training and capacity building for RCP-CID staff and ERAs

FOLLOW-UP OF CONFERRAL OF FOLLOW-UP OF CONFERRAL OF MANAGEMENT AUDMANAGEMENT AUDIIT T FINDINGS OF FINDINGS OF

THE DG REGIOTHE DG REGIO

Conferral of Management Audit Findings of the DG REGIO AREA:AREA: Formal establishment of accountability, responsibility,

delegated responsibility and any necessary related authority for all tasks and positions throughout the organisation.

SUMMARY FINDING RECOMMENDATI

ON/FOLLOW UP

ACTIONS

CURRENT STATUS

A smooth hand-over of all tenderingand contracting files should besafeguarded between the Ministry ofScience, Industry and Technology and Central Finance and ContractsUnit upon the conferral of thetendering, contracting and financial management functions.According to the first addendum(December 2010) of the initialCooperation Agreement, there were specific provisions arranging indetail the handover of the publicprocurement documents according to the status of the tenders/contractsmanaged by CFCU. However, in asecond addendum (May 2011), it isstated that following the accreditation and conferral ofmanagement powers, all the contractual responsibilities should be undertaken by the Ministry ofScience, Industry and Technology.This uncertainty put into questionthe effective functioning of themanagement and control system concerning tendering, contracting and financial management.

Specific provisions arranging in detail the transition of the tendering, contracting and financial management files should be laid down in an agreement between the two institutions.

Regarding the transfer of tendering and contracting files, a meeting was held on 8th of March 2012 between CFCU and MoSIT. It is concluded in the meeting that all tender or contract files at different phases will be transferred to the MoSIT.

It has been agreed on that files at the tendering phase will be transferred to the MoSIT at the end of the relevant stage (shortlisting, evaluation, contracting or signature), and files at implementation phase will be directly transferred to the MoSIT after realization of payment requests if any made at the end of the meeting. Before transfer of files, CFCU will send an addendum to EUD for tenders under evaluation or contracts under implementation.

To conclude, the procedure agreed by the both sides regarding transition of the tendering, contracting and financial management files sent by the CFCU with an official letter with the date of 12th of March 2012. In addition, to maintain smooth transition, close cooperation was achieved and workshops were carried out with CFCU and EUD during the transition period which enabled the experience sharing and know-how transfer between institutions.

Conferral of Management Audit Findings of the DG REGIO AREA:AREA: Internal audit including handling of audit reports and

recommendations

SUMMARY FINDING RECOMMENDATION

/FOLLOW UPACTIONS

CURRENT STATUS

The set up and functioning of theinternal audit function in theMinistry of Science, Industry andTechnology has weakened since theinitial conferral of managementdecision and is considered as animportant weakness in the currentmanagement and control system.No IPA related, internal auditactivity was carried out, norplanned, in 2011.The requirement of CommissionRegulation (EC) No 718/2007Article 28(2)(k): The operatingstructure shall be responsible formanaging and implementing theprogramme or programmesconcerned in accordance with theprinciple of sound financialmanagement. For those purposes, itshall carry out a number offunctions that include: ensuringinternal audit of its differentconstituting bodies; in the currentsituation it is not fulfilled.

Recruitment and retainment of qualified internal auditors should be given the highest priority.

Internal audit training programmes, in accordance with international internal audit standards should be implemented and further intensified.

IPA related internal audit work should be regularly performed. Relevant follow-up information should be provided to the Commission concerning- recruitment- training- audit workcarried out.

A detailed audit plan for 2012 including the follow-up of previous internal audit findings should be submitted to the Commission.

It will be subject to recruit at least 2 internal auditors until the end of 2012. In addition 1 of Internal Auditors of the Ministry has been nominated for the purpose of dealing with the operations of the RCP-CID.

Training strategy document for EU funded projects will be prepared and submitted to the RCP-CID to ensure that the trainings proposed within the scope of this strategy would be provided with sources of the TA Project. “The Tendering Documents Preparation Activities” of the Regional Competitiveness Operational Program and Implementation Department was audited in terms of system and compliance between 17/08/2011-08/02/2012. The 2012 Internal Audit Program was sent to the Commission.

It is planned in the 2012 Internal Audit Plan to carry out an audit on “Reporting Irregularities” and to implement follow up.

Conferral of Management Audit Findings of the DG REGIO AREA:AREA: Security procedures (IT) and Evaluation

SUMMARY FINDING RECOMMENDATION

/FOLLOW UPACTIONS

CURRENT STATUS

At Strategic Coordinator level the horizontal Integrated Management Information System (IMIS) is still not functioning and the Commission has been made aware of technical problems. In parallel, the Ministry of Science, Industry and Technology plans to develop an individual Management Information System addressing specific implementation and financial reporting needs at a measure, project and contract level. The integration between the IMIS, the MIS and the accounting system should be given a priority and proper procedures should be added in the manual of procedures. The finalisation of the MIS is foreseen for the end of 2013, in the meantime an alternative information system will be used. The requirement of Commission Regulation (EC) No 718/2007 Article 28(2)(i): The operating structure shall be responsible for managing and implementing the programme or programmes concerned in accordance with the principle of sound financial management. For those purposes, it shall carry out a number of functions that include: setting up, maintaining and updating the reporting and information system; in the current situation only partly fulfilled.

The technical problems with the IMIS system should be solved with the highest priority.

Possible interfaces should be developed between the different systems in order to prevent double entry of data and similar entry mistakes. Priority should be given to the finalisation of the MIS. Relevant follow-up information should be provided to the Commission concerning

- The functioning of the IMIS System

- the planning and progress concerning the interfaces

- progress of the MIS

- Training provided.

The integrated structure between the different IT systems will be ensured by the Management Information System which is at the PN publishing phase at the moment. The ToR of MIS is prepared by taking into consideration of that integration matters.

Estimated date of contract Signature for MIS:2nd quarter of 2013.

On the other side, the user trainings for MIS will be given after the completion of the system. Furthermore, System Admin Trainings will be given to RCP-CID staff in order to ensure sustainability

Till MIS will be fully operational; interim IT solutions (the File server for archiving and hierarchical electronical document sharing, the excel worksheets developed by each department according to their own needs ) and other  systems  (IMIS, PRESTO) will be on use.

Moreover, training programme for PRESTO was organized for the relevant staff in the third quarter of 2011.

Conferral of Management Audit Findings of the DG REGIO AREA:AREA: Security procedures (IT) and Evaluation (Continued)

SUMMARY FINDING RECOMMENDATION

/FOLLOW UPACTIONS

CURRENT STATUS

The technical problems with the IMIS system should be solved with the highest priority. Possible interfaces should be developed between the different systems in order to prevent double entry of data and similar entry mistakes. Priority should be given to the finalisation of the MIS. Relevant follow-up information should be provided to the Commission concerning

- The functioning of the IMISSystem

- the planning and progressconcerning the interfaces

- progress of the MIS

- Training provided.

Within this scope, training programmes were organized regarding IMIS for the staff of Operating Structures and their end recipients in 2010.

Training of trainers programme was organized by the Ministry of Development (MoD) for the staff of the Operating Structures in 1-5 March 2010.

Training programme was organised for the first and third project package end recipients of the RCOP and staff of RCP-CID between 29th of April and 2nd of May 2010.

IMIS has become operational as of September 2010 and was accessible at the web page of the Ministry.

2nd half of 2011- January 2012: Period of Technical problems and efforts for solutions.

Remindful training was delivered on 13th of January 2012 by RCP-CID to the first and third project package end recipients.

In this context, IMIS opened to active usage of the first and third project package end recipients on 16th of January 2012.

In the forthcoming period, it is planned to organise trainings and open the system to the end recipients of second project package.

THANK YOU FOR YOUR ATTENTION

Ministry of Science, Industry and TechnologyRegional Competitiveness Programme

Coordination and Implementation Directorate

e-mail: ipa@sanayi.gov.tr Web adress: ipa.sanayi.gov.tr