PHARE EDIS APPLICATION

1. PHARE EDIS APPLICATION

2. CONTENTS • INSTITUTIONAL SETUP • ORGANIGRAMS OF THE INSTITUTIONS INVOLVED • CONTRACTING PROCEDURES • PAYMENT AND ACCOUNTING PROCEDURES • MONITORING AND EVALUATION • INTERNAL AUDIT • PUBLIC INTERNAL FINANCIAL CONTROL • IMPLEMENTATION OF THE ROADMAP STAGES • PROCUREMENT-TRANSITION FROM PRAG TO EU DIRECTIVES 2

3. 1. INSTITUTIONAL SETUP 3

4. European Commission DG Enlargement National Aid Coordinator – NAC Aid Coordination Unit Office of the Government of the SR Planning, Programming Monitoring, Evaluation National Authorising Officer- NAO National Fund Ministry of Finance Overall responsibility for financial management of PHARE funds Programme Authorising Officer - PAO CFCU Implementing Agency Tendering, Contracting and Payments Programme Authorising Officer - PAO Regional Development Support Agency Implementing Agency Tendering, Contracting, Payments, Technical implementation Programme Authorising Officer - PAO National Agency for Development of Small and Medium Size Enterprises Implementing Agency Tendering, Contracting, Payments,Technical Implementation Senior Programme Officers - SPOs Technical implementation Senior Programme Officers - SPOs Technical implementation Senior Programme Officers - SPOs Technical implementation 4

5. MAIN ACTORS (1) • The National Aid Coordinator is responsible for coordination (especially in programming phase) and monitoring of the PHARE Programme • National Authorizing Officer is responsible for financial management of PHARE Programme • The Implementing Agencies are in charge of implementing of signed PHARE Financial Memoranda • Supreme Audit Office (SAO) is an independent governmental agency bound only by the Act No.559/2001 Coll. For the purposes of this Act, funds of the EC shall also be regarded as state budgetary funds. The Office shall audit the management in accordance with the Act. Office is Certification body for SAPARD and will be responsible for winding -up in case of Structural Funds. 5

6. MAIN ACTORS (2) • Responsibilities of relevant bodies are specified more in detail in The Memorandum of Understanding on Establishment of the National Fund between the Government of the Slovak Republic and Commission of European Communities (signed in December 1998) 6

7. Regulatory Framework System for the Supreme Audit Office Audit Activities Constitution of the Slovak Republic SAO SR Act No. 39/1993 Coll. As amended Rules for Auditing Activities within the Supreme Audit Office of the Slovak Republic SAO SR Auditing Standards based on internationally accepted audit. standards INTOSAI and IFAC ManualXY ManualXY Manual XY Manual XY etc. 7

8. P r e s i d e n t Secretariat V i c e - P r e s i d e n t V i c e - P r e s i d e n t Internal control Secretary Secretary Spokesman Financial Section EU Funds Audit Department Personal and Salaries Department Section of Economic Sectors and Environment Secretary IT Department Secretary Department of Non-Tax Revenues Department of Economy Financial Department Financial Department Department of State Budget Department of Transport, Postal Services and Telecommunication Economic Department Analytical Department Department of Agriculture Training Centre in Bojnice Section of Defence and Interior Department of Environment Department of Foreign Relations Section of Transformation and Administration Secretary Legal and Methodical Department Secretary Department of Interior Department of State PropertyTransformation Regional Office in Banska Bystrica Defence Department Department of State Property Administration in Selected Sectors Department of State Offices Secretary Department of Foreign Affaires Department of Social Affairs State Revenue department Section of Tax and Customs Section of Public Consumption Department of State Expenditure Department of State Property Administration Secretary Secretary Department of Direct Taxes Regional Office in Kosice Department of Healthcare Department of Indirect Taxes Department of Education and Science Secretary Department of Custom Duties Department of Culture and Mass Media State Revenue Department Department of State Expenditure Department of State Property Administration Organisational Chart of the Supreme Audit Office of the Slovak Republic 8

9. 2. ORGANIGRAMS OF THE INSTITUTIONS INVOLVED 9

10. 2.1. ORGANIGRAM OF THE NATIONAL AID CO-ORDINATOR (NAC) 10

11. National Aid Co-ordinator Mr. Pál Csáky Deputy Prime Minister for European Integration, Human Rights and Minorities Section for European Affairs Mr. Ladislav Setnický - Director General Communication Strategy Department Aid Co-ordination Unit Department Mr. Ivan Fecenko -Director Regional Policy and Structural Actions Department European Affairs Department Secretary Pre-accession instrument PHARE and Transition Facility Division Monitoring and Evaluation Cell (Division) Bilateral and Multilateral Programmes Division ISPA and SAPARD Division Mr. M. Petro Ms. K. Čajková Ms. I. Fáberová Ms. D Kútyová Ms. M. Molnárová Ms. M. Svitková Ms. J Minarovičová Mr. M. Orth Mr. R. Ondrejkovič Ms. M. Šteliarová Ms. M. Berová 11

12. 2.2. ORGANIGRAM OF THE NATIONAL AUTHORISING OFFICER (NAO) 12

13. MINISTER Financ. Control & Internal Audit Methodology Unit Ministerial Office Financial Policy Institute Head of the Office Personnel & Org. Aministr. Dpt State Secretary NAO International Financial & Economic Org. Dpt State Treasury Project Dpt Internal Audit Unit State Secretary CFCU General Administration Section Budget Policy Section Public Expenditure Section European Affairs Section Control Section Financial Market Section Taxes and Customs Section Legislation & Ownership Rights Section State Closing Acc., Debt & Accounting Section Economic Department State Budget Department Non-profit Sector Financing Department Coordination of Relations with EU Dpt. Internal Control Dpt Capital Market & Insur. Dpt. Legislation & Methodology of Tax Administr. Legislation Department State Closing Account Dpt. IT Department Public Budgets Department National Fund Department Financial Control Dpt Bank & Exchange Relations Dpt. Income Taxes Department Regional Offices Chapters Budgeting & Financing Dpt Property & Restitutions Department Accounting Methodology Dpt Economic Administr. Department Public Administr. Employment Financing Dpt. Paying Authority for Struct. Funds Department Tax & Customs Administration Supervision Dpt Indirect Taxes Department Supervision on Special. Fin. Market Institut. Dpt International Legal Relations Dpt State Debt Management Dpt Financing of Regional Self-govern. Department Separate Sub-Dpt for Procurement Property, Road Taxes & Fees Department Department of Total Financial Relations to the EC Budget Property Administration Dpt State Supervision Dpt. Entrepreneurs Financing Dpt International Tax Relations Department Financial control of EC funds dept. Customs Department Price Department 13

14. Internal Audit Unit Financial Control and Internal Audit Methodology Unit CONTROL SECTION Internal Control Department Financial Control of EC Funds Department NATIONAL FUND BUDGET POLICY SECTION STATE CLOSING ACCOUNT, DEBT AND ACCOUNTING CONTROL SECTION GENERAL ADMINISTRATION SECTION IT Department HEAD OF THE OFFICE Personnel and Organizational Department 14

15. National Authorizing Officer (NAO) Mr. Vladimír Tvaroška Deputy NAO Ms. Mária Kompišová National Fund Director Ms. Ľubica Slimáková Quality Assurance Manager Mr. Milan Gajdoš Certifier of Expenditure for ISPA/CF Head of PHARE Unit Ms. Petra Pazerini ISPA and Cohesion Fund Unit SAPARD Unit Head of Accounting Unit Ms. Lýdia Mrvová Ms. Anna Fričová Mr. Peter Bagin Ms. Silvia Vyrvová Mr. Martin Mojžiš Mr. Juraj Okál Mr. Ján Podhorský 15

16. 2.3. ORGANIGRAM OF THE CENTRAL FINANCE AND CONTRACTING UNIT (CFCU) 16

17. EUROPEAN AFFAIRS SECTION National Fund Internal Audit Unit Financial Control and Internal Audit Methodology Unit CONTROL SECTION Internal Control Department Financial Control of EC Funds Department CFCU BUDGET POLICY SECTION STATE CLOSING ACCOUNT, DEBT AND ACCOUNTING CONTROL SECTION GENERAL ADMINISTRATION SECTION IT Department HEAD OF THE OFFICE Personnel and Organizational Department 17

18. Tendering and Contracting Unit Financial Unit PM1 PM2 PM3 PM4 PM5 PM6 PM7 PM8 PM9 SFM FMA FM1 FM2 Project Managers (9) Senior Financial Officer • 1. Ms. Daniela Migrová • 2. Ms. Anna Oszlányiová3. Ms. Veronika Konická4. Ms. Martina Galabová5. Ms. Zuzana Olšová • 6. Mr. Miroslav Papuščák • 7. Ms. Tatiana Christovová • 8. Mr. Boris Bujalka (external expert) • 9. (position not yet filled) Ms. Zora Pauliková Financial Manager Accountant Ms. Marta Horváthová Financial Managers (2) 1. Ms. Denisa Horváthová 2. Ms. Petra Balcová Director & Programme Authorising Officer (PAO) Secretaries (2) Ex-Ante Approval Unit 1. Ms. Sylvia Szabóová2. (position not yet filled) Ms. Silvia Czuczorová 18

19. 2.4. ORGANIGRAM OF THE REGIONAL DEVELOPMENT SUPPORT AGENCY (RDSA) 19

20. Minister State Secretary I Head of service office State Secretary II Crisis managem. Personal office Minister´s office department Indipen. division of Control department Budget and financing informatics department Science and technology Indepen. division of Legislative-legal department department transformation Economic administration Internal audit unit department Civil construction Regional policy section Regional Development Housing policy section EU assistance management Support Agency section section Housing policy concept European integration Civil construction Implementation department department department Management department for department CSF 720 Region. develop. Housing economy Financial. management strategy department department department Management department for Constr. products 730 SPD conformity Region. develop. Agency control department attestation programmes Cohesion Fund management department and co-ordination department Department for management Region. develop. of the OP BI management department INTERREG A management Public works department department Organisational structure of the Ministry of Construction and Regional Development 20

21. Implementation Department Director of the Department Mrs. Alena Šoltysová Mrs. Anna Polnišerová Head of CBC Division Financial Management Department Agency Control Department (also ex-ante approval) Mr. Juraj Krecháč Project Manager for CBC Department for Management of the OP BI INTERREG A Management Department Director of the Department Mrs. Dagmar Skačková, MBA, SAO Director of the Department Mrs. Zuzana Andrássy Deputy PAO Mr. Valentín Magdolen Project Manager for CBC Director of the Department Mrs. Eva Hrčková Director of the Department Mr. Pavel Holík Mr. Marián Méry Project Manager for CBC Mrs. Vladimíra Olléová Mr. Milan Gál Not occupied Mr. Peter Šucha Control Manager for ECOSOC Mr. Tomáš Štálnik Mrs. Eva Ďurišová Mrs. Melinda Jančaričová Head of JSPF Division Mrs. Andrea Rajčáková Mr. Ján Bicko Mrs. Dana Dragulová Account Administrator Mrs. Vladimíra Višacká Control Manager, JSPF+grants grants Mrs. Silvia Fehérová Mrs. Beatrix Bárányová Project Manager for JSPF Mr. Peter Polyak Mrs. Zuzana Nedbalová Mrs. Annamária Mačurová Legal Control Manager Mrs. Janka Piliarová Payment Administrator Mr. Radoslav Behul Mrs. Lucia Gallová Project Manager for JSPF Mr. František Bilčík Control Manager for CBC Mr. Juraj Juhász Ex-ante Controlor Mrs. Georgína Pódová Project Manager for JSPF Mrs. Karin Susková - Secretary Mrs. Lucia Kozlová - Secretary Mr. Jozef Kelbel Head of ECOSOC Division Mr. Drahomír Rešeta Project Manager for ECOSOC Mr. Ján Jambrich IT Manager Not occupied Mrs. Mária Idelbeková - Secretary Organisational structure of the RDSA Regional Development Support Agency General Director - PAO Mr. Július Slovák Mrs. Alžbeta Voleková - Secretary 21

22. Regional Development Support Agency General Director Secretary Financial Management Implementation Agency Control Department (ACD) (also ex-ante approval) Department for INTERREG A Department Department Management of the Management (FMD) (ID) OP BI Department Regional Grant Scheme Legal Development Division Division Division PHARE Control Delivery ECOSOC Division Division Division Environmental PHARE CBC Division Division Organisation frame structure of the RDSA 22

23. 2.5. ORGANIGRAM OF THE NATIONAL AGENCY FOR DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISES 23

24. Assembly of Representatives of Association Members Supervisory Board 3 members Board of Trustees 5 members Internal Auditor IAu Ministry of Economy Director General PAO Control Unit Financial Secretariat (MPR) Organisational Unit Programme Co-ordination Unit Financial Unit Co-ordination Department Financial Support Programmes Department Regions and Education Department Information and Foreign Activities Department Euro Info Centre Economy and Administration Department Assistant to SAcO IDGS Project Team Project Officer Support Loan Programme Project Officer Business Incubators IT Manager Accounting Officer Project Officer Micro-loans Programme Project Officer First Contact Point for SME Perseus Administration Project Officer Seed Capital Fund INTEG Project Team TDGS Project Team Other involved intermediaries Regional Advisory and Information Centres Business Innovation Centres First Contact Point Centres Seed Capital Company participating banks NADSME Organisational Structure 24

25. Employees of NADSME (1) 25

26. Employees of NADSME (2) 26

27. Employees of NADSME (3) 27

28. 3. CONTRACTING PROCEDURES 28

29. 3.1. GENERAL CONTRACTING PROCEDURES FOR SERVICES, SUPPLIES, WORKS 29

30. CONTRACTING PROCEDURES DIVISION OF TASKS BETWEEN THE ACTORS OF PROCUREMENTS AFTER EDIS - ACCORDING TO PRAG EX-POST • Actors: • Implementing Agencies (IA): Central Finance and Contracting Unit (CFCU); Regional Development and Support Agency (RDSA); National Agency for Development of Small and Medium Enterprises • National PHARE Co-ordinator (NAC): Office of the Government • National Authorising Officer (NAO): Ministry of Finance • National Fund (NF): Ministry of Finance • Programme Authorising Officer (PAO) - CFCU, NADSME, RDSA • European Commission’s Delegation to the Slovak Republic (ECD) until Accreditation 30

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32. Procedure PHARE Activity 4. Publication of Global and individual Contract Forecast IAs/CFCU The global and individual contract forecasts and procurement notices will be electronically announced to the ECunder conditions of the Practical Guide to procedures financed from the General Budget of the European Communities in the context of external actions under decentralised ex-post management (Practical Guide ex-post) and published on the website of the Ministry of Finance of the SR and on IAs own website. 5. Preparation of Tender Dossier (TD) IA/CFCU According to the Practical Guide ex-post rules. 6. Quality control of TD IA/CFCU The quality control is in full responsibility of IAs and PAOs supported by experts from Ex-ante units and on the spot review will be performed by the experts from Unit for Public Procurement Supervision 7. Approval of TD and Procurement Notice (PN) IACFCU The procedures will be applied in accordance with the Practical Guide ex-post. No approval of the EC is required in ex-post management. IAs and CFCU will send a letter of invitation to tender accompanied by the tender dossier which has the content proposed in Practical Guide ex-post (type of contract, tender evaluation criteria, etc.)only to shortlisted candidates. 8. Publication of PN See point 4. See point 4. 9. Appointment of members of the Tender Evaluation Committee (TEC) Contracting Authority (usually PAO) The Evaluation Committee (ie, the Chairman, the Secretary and the voting members) must be nominated on a personal basis by the PAO (Contracting Authority). The participation of any observers must be authorised individually by the Contracting Authority. 32

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35. 3.2. CONTRACTING PROCEDURES FOR GRANTS 35

36. DIVISION OF TASKS BETWEEN THE ACTORS OF GRANT PROCEDURES IN EDIS Actors: • Recipient of the project-line ministry • Senior Programme Officer (SPO) • Implementing Agency (IA) • Programme Authorising Officer (PAO) • Monitoring Committee (MC) • National Authorising Officer (NAO) • European Commission (EC) • Evaluation Committee (EvC) • Applicants (APP) • Beneficiaries (BEN) 36

37. Procedure Responsible for Implementation Publication of Annual Work Programme IA, EC Preparation of documentation for Call for Proposals IA, (TA), SPO Endorsement of documentation for Call for Proposals MC Launching of the Call for Proposals IA Creation of EvC, Selection of Assessors IA Answering the enquiries from APP IA Endorsement of EvC composition MC Nomination of EvC assessors PAO Opening of applications EvC Assessment of administrative compliance and eligibility EvC Assessment of technical and financial quality EvC Conclusion of the evaluation EvC Approval of the EvC recommendations IA, PAO Information on the list of grants awarded MC, EC 37

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39. Procedure Responsible for Implementation Evaluation of grant scheme IA, SPO Preparation of the Final Report of the grant scheme IA, SPO Signature of the Final Report of the grant scheme PAO Endorsement of the Final Report of the grant scheme MC 39

40. 3.3. CONTRACTING PROCEDURES FOR TWINNING 40

41. GUIDANCE ON TWINNING IN RELATION TO EDIS IN SR (1) • National Aid Coordinator (NAC): • The new twinning manual for EDIS will be presented to EU member states and accession countries on 4.-5. 12. 2003 in Brussels • Organisation of twinning projects programming, preparation, selection, monitoring and internal project evaluation; • Assistance in Twinning project fiches circulation in the Member States (MS) via the EC/MS National Contact Points (NCPs); • Approval of compliance with jointly agreed objectives of the Twinning projects; • Organising the process of selecting MS partners; 41

42. GUIDANCE ON TWINNING IN RELATION TO EDIS IN SR (2) • The entirely duty and responsibility of both Twinning Partners (MS and AC) is to draw up the detailed work and time schedule, with corresponding budget, the NAC is in the role of observer and assessor in this process; • Final approval of financing and assessment of work plan presentation to Commission’s Steering Committee; • Notification of financing decision to Twinning partners (MS and AC) taking into account the European Commission's binding opinion on the work plan; • Monitoring of Twinning projects; • Final approval / endorsement of addenda to the valid TWC in compliance with valid “Manual on Twinning Projects”; • Approval of final report via SPOs. 42

43. GUIDANCE ON TWINNING IN RELATION TO EDIS IN SR (3) • National Contact point for twinning in SR (NCP): • Receipt of MS proposals transmitted by European Commission; • Registration and transmission of the MS proposals to the AC institution; • Organization and management of selection meeting and selection of partners (oral presentations); • Elaboration of annual evaluation of implemented Twinning projects for Slovak Government session; 43

44. GUIDANCE ON TWINNING IN RELATION TO EDIS IN SR (4) • Dispatch of the Call for proposals for CARDS and TACIS projects, transmitted by European Commission to relevant Slovak ministries; • Assistance to Slovak ministries in drafting proposals for CARDS and TACIS project proposals and its annexes; • Dispatch of the Slovak proposals for CARDS and TACIS projects to the European Commission. 44

45. GUIDANCE ON TWINNING IN RELATION TO EDIS IN SR (5) • National Authorizing Officer - NAO • Full financial responsibility and liability for the management of aid funds on a decentralised basis as per Council regulation 1266/99 • Central Finance and Contracting Unit – CFCU (represented by PAO) • In compliance with valid “Manual on Twinning Projects” CFCU is responsible for making payments for Twinning projects; • Endorsement of the proposed budgetary part of the Twinning Covenant (conditional if budgetary rules are not followed); • Endorsement of the budgetary part of the addenda to the valid Twinning Covenant; • Tendering and contracting of private sector inputs for services and supplies under the Twinning Covenant in accordance with the valid “Manual on Twinning Projects”; • Tendering and Contracting of Twinning light projects. 45

46. PREPARATION PHASE • Call for proposals • Twinning project fiches are circulated in the MS via the EC/MS NCPs; • The deadline for submission of offers is set by the EC – in EDIS by the NAC (approximately 6 – 8 months); • Offers • The offers are received at the NAC and are expected to show a certain degree of preparation; • Generally, the MS twin has to be headed by a competent public administration; • The proposal of non-administrative bodies may be accepted (mandated bodies). 46

47. SELECTION • Registration and transmission of the MS proposals to the AC beneficiary institution is organised by NAC office; • NAC organises the meetings between the proposing MS administrations and the AC beneficiary institution (oral presentation); • NAC submits minutes of selection meeting with AC beneficiaries choice evaluation to the Commission; • Commission communicates the final choice of the AC of the MS partners, the MS National Contact Point and to the DG Enlargement. 47

48. PREPARATION OF THE COVENANT (1) • Drafting the Twinning Covenant • entirely the duty and responsibility of both Twinning partners (MS and AC) • the work schedule has to reflect a clear strategy (measurable benchmarks,targeted results) • the CFCU verifieswhether the Covenant’s budget is in line with the rules set by the Twinning Manual • Assessment and financial approval • the draft Covenant has to be submitted to the NAC within 3 months of the notification of selection for commenting • final approval of financing and assessment of work plan presentation to Commission’s Steering Committee by NAC 48

49. PREPARATION OF THE COVENANT (2) • Endorsement of the Covenant by SC • conditional if budgetary changes are required or unconditional • Preparation of TWC final version • Signature of the TWC by AC and MS partners • Endorsement of the TWC by CFCU • Endorsement and notification by NAC 49

50. PAYMENT PROCEDURE OF THE TWINNING PROJECTS All payment requests of the Twinning project have to arrive to the CFCU via the SPO. The SPO has to verify that the services have been rendered. 50