Croatian Experience with Management of EU Funds

Nataša Mikuš, Deputy State SecretaryCentral Office for Development Strategyand Coordination of EU Funds

EU FUNDS WITHIN THE FRAMEWORKOF EU-CROATIAN RELATIONS

Central Office for Development Strategy and Coordination of EU Funds

Stabilisation and Association Agreement

Interim Agreement

10/2001

06/2004 Council Decision on Croatia as a Candidate Country

10/2004 Pre-Accession Strategy for Croatia

04/2004 European Partnership with Croatia

10/2005 Opening of negotiations

02/2006 Pre-Accession Partnership

CARDS

(2000-2004/2006)

PHARE/ISPA/SAPARD

(2005/2006)

IPA

(2007 onwards)

+ Community

Programmes

EU MEMBERSHIP EU STRUCTURAL FUNDS & COHESION FUND

OBNOVA

(1996-2000)

FP

2000-2006F

P 2007-2013

CARDS1

FINANCIALSTATISTICS

Central Office for Development Strategy and Coordination of EU Funds

PHARE

262 million € under national component

2001 - 60 million €

2002 - 59 million €

2003 - 62 million €

2004 - 81 million €

Participation in regional projects (199 million €)

2 167 million € in total

2005 - 80 + 7 million €

2006 - 80 million €

3 ISPA 60 million € in total

2005 - 25 million €

2006 - 35 million €

4 SAPARD 2006 - 25 million €

Centralised/deconcentrated

management

Decentralisedmanagement

Extended decentralised management

CARDS

CARDS

PHARE

SAPARD

MANAGEMENTSYSTEMS

ISPA

Central Office for Development Strategy and Coordination of EU Funds

PHARE/ISPA

National Aid Coordinator

National Authorising

Officer

CFCU

PIU 1

Final Beneficiary

PIU 2

Final Beneficiary

(Sectoral coordinators for ISPA)

ProgrammingMonitoringEvaluation

Financial management

SAPARD

EX

-AN

TE

C

ON

TR

OL

BY

EC

MANAGEMENT SYSTEMS

ProgrammingMonitoringEvaluation

Financial management

Managing Authority

National Authorising

Officer

SAPARD Agency

Final Beneficiary

Final Beneficiary

EX

-PO

ST

C

ON

TR

OL

BY

EC

Monitoring Committee

National Fund National Fund

NATIONAL AID COORDINATOR

Central Office for Development Strategy and Coordination of EU Funds

Coordination of the programming process; Ensuring a close link between the general accession process and the use of Community assistance; Guarantee of the use of transparent project selection procedures;

Signature of framework and annual financing agreements; Management of monitoring and evaluation process.

FUNCTIONS

JMC

SMSCSMSC

SMSCSMSC ISPA MCSAPARD MC

NATIONAL AUTHORISING OFFICER

Central Office for Development Strategy and Coordination of EU Funds

Overall responsibility for financial management of EU funds; Ensuring respect of rules pertaining to procurement, reporting and financial management; Financial control (internal, system controls, expenditure checks); Ensuring investigation and satisfactory treatment of suspected and actual cases of fraud and irregularity; Recovering any EU pre-accession funds wrongly paid.

FUNCTIONS

NATIONAL FUND FUNCTIONS

Request for, and the receipt of, funds from the EC; Redistribution of funds to the implementing agencies; Financial reporting to the Commission.

IMPLEMENTING AGENCY (CFCU)

Central Office for Development Strategy and Coordination of EU Funds

Tendering and signature of contracts, in line with PRAG rules; Effective, timely and accountable implementation of contracts; Approval of payments (on SPOs authorisation); Regular financial and progress reporting to the NAO and NAC; Requesting the transfer of funds from the NF/NAO; Operating an accounting system under international standards.

FUNCTIONS

PROJECT IMPLEMENTATION UNIT

FUNCTIONS

Preparation of programmes and project proposals; Preparation of tender documentation; Ensuring the co-financing elements of a programme/project; Participation in tender evaluation; Technical implementation and reporting; Ensuring repayment of any funds in the case of irregularities.

BUILDING BLOCKS OF THE SYSTEM

Central Office for Development Strategy and Coordination of EU Funds

Legal authorityfor tasks

Formal establishment

of accountability

Staff planning & training

Segregation of

duties

Risk management

Appropriatecontrol ofoperations

Monitoring & evaluation

ReportingMANUALS

PROCEDURES

PROCEDURES

MANUALS

CARDS

PRE-ACCESSION PROGRAMMES

PHARE SAPARDISPA

IPA

EU COHESION POLICY

ERDF ESFERDF

Cohesion Fund

EARDF

Support in Transition and

Institution Building

Regional and Cross-Border Co-operation

Regional Development

Human Resource

Development

Rural Development

EFF

ESF

IPA

Central Office for Development Strategy and Coordination of EU Funds

IPA

Central Office for Development Strategy and Coordination of EU Funds

CHALLENGES

PROGRAMMING1

Central Office for Development Strategy and Coordination of EU Funds

INSTITUTION BUILDING

Multi-annual with clear definition of national priorities

2 Alignment of structures to the requirements for Structural Funds operations:

Managing Authority Implementing Agency Certifying Authority Audit Authority Monitoring Committee

3 LEGAL FRAMEWORK

Public procurement

State aid/Competition

Budgetary and financial provisions

Environment protection

CROATIAN EXPERIENCE

Central Office for Development Strategy and Coordination of EU Funds

SOME LESSONS LEARNT

PROGRAMMING1

Central Office for Development Strategy and Coordination of EU Funds

INSTITUTION BUILDING

Clear establishment of national priorities

Ability to select the priorities of priorities (arbitration function of NAC)

Continuous programming exercise (project pipeline)

2 Allocation of responsibilities in line with the functions in the national administration

Investment into human resources (keep people within the system and prevent staff turnover)

Continuous training on the central and regional level

Efficient cross-sectoral co-ordination

And………. The EC is your partner in the process. We all share the same goal!

Središnji državni ured za razvojnu strategiju i koordinaciju fondova EU

Thank you for

your attention!

Questions?

Comments?