m 1.3 ipa implementing structures

7/26/2019 M 1.3 IPA Implementing Structures

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M 1.3 IPA Implementing Structures

Module

Training material M1.3

Client: Agentschap NL

Rotterdam, 15thNovember


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M 1.3 IPA Implementing Structures

Module

Training material M1.3.

Client: Agentschap NL

15thNovember


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2 II23881

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Table of contents

M 1.3 IPA Implementing Structures Module 3

The IPA instrument Brief overview 5

1.1 IPA Implementation structures and modalities 10

Examples of IPA Implementing Structures 17

Exercise: 59


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5

The IPA instrument Brief overview 1

Since 1 January 2007, the EU pre-accession funding has been delivered through a single, unified

instrument, the Instrument for Pre-accession Assistance(IPA), designed to deliver focused and

targtetted supportto both candidate and potential candidates countries. It is the successor to the

former pre accession instruments PHARE, ISPA, SAPARD, the Turkish pre-accession instrument

as well as the financial instrument for the Western Balkans, i.e. CARDS.

IPA offers streamlined pre-accession assistancethrough the creation of a single frameworkfor

both Candidate and potential Candidate Countries (same Regulations apply for both group of

countries).

Figure 1 Eligible countries for assistance

Candidate Countries Status

Croatia Applied for membership in February 2003. Confirmed as candidate country in June 2004. The

negotiations started in October 2005 and were closed in June 2011. This year the EC presented

its favourable opinion on Croatia's readiness accession to the EU. Following the completion of the

ratification process, Croatia should become a member state on 1 July 2013

Turkey Applied for membership in 1987. Accession negotiations were opened in October 2005. 13

chapters are opened and 1 provisionally closed. Full implementation of the obligations under the

Customs Union and progress towards normalisation of relations with Cyprus are needed before

the country can advance more vigorously in its accession negotiations.

Iceland Applied for membership in July 2009, the negotiations started in July 2010. By now 4 chapters

opened of 2 of which have been provisionally closed. As Iceland is already a member of the EEAand the Schengen area, a large part of its legislation is already aligned with that of the EU.

Macedonia Applied for membership in 2004. Candidate country since 2005. The Commission recommended

in Oct 2009 to open accession negotiations. The country continues to sufficiently fulfil the political

criteria and the Commission renewed its 2009 recommendation for opening accession

negotiations. As a unanimous decision of Member States is required for the negotiations to start,

a solution to the name issue is essential

Montenegro Applied for full membership in December 2008. In 2010, the EU awarded candidate status and set

out seven key priorities which the country needs to fulfil in order to achieve the opening of

accession negotiations. This year the Commission recommended opening of accession

negotiations.

Potential C Status

Albania Applied for membership in 2009. In 2010 the EU set out twelve key priorities which the country

needs to fulfil to achieve the opening of accession negotiations. Although progress was made in

some of these areas the Commission was not in a position to recommend further steps for

Albania this year.

1

* Sources: http://ec.europa.eu/enlargement/how-does-it-work/financial-assistance/instrument-pre-accession_en.htm* Council Regulation 1085/2006, adopted on 17 July 2006 (establishing the instrument)* Commission Regulation 718/2007 of 12 June 2007 (IPA Implementing Regulation)* Commission Regulation 80/2010 of 28 January 2010 amending Regulation 718/2007 and Regulation 1085/2006* Commission staff working document, Background document to the report from the Commission to the Parliament, the

Council and the European economic and social committee 2009 Annual Report on the implementation of the Instrumentfor Pre-accession Assistance (IPA) COM(2010) 687, Nov 2010


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Serbia Applied for EU membership in Dec 2009.This year the Commission recommended that the

Council grants Candidate Status. Further steps to normalise relations with Kosovo are set as key

priority which the country needs to fulfil in order to achieve the opening of accession negotiations.

Kosovo Potential candidate country since 2003, not applied for membership but taking preliminary steps.

Differences over the status of Kosovo remain an obstacle to the development of contractual

relations between the EU and Kosovo. The EU supports Kosovo's efforts to fulfil its European

perspective

Bosnia and Herzegovina Signed a Stabilisation and Association Agreement (SAA) with the EU in June 2008 but hasnt

applied for membership yet. Preliminary steps are taking place.

IPA aims to support (potential)candidate countri es in:

fulfilment of the membership criteria (approximation (for potential candidates) and full

implementation (for candidates) of the Acquis Communautaire) through transitional

assistance and institutional building

strengthening the democratic institutions and the rule of law, promoting respect for human

as well as minority rights and gender equality supporting the development of civil society

reforming the public administration

carrying out economic reforms

advancing regional co-operation

sustainable development and poverty reduction

policy development in the cohesion policy areas preparing countries to effectively

implement and manage the future Communitys Policies

preparing for the programming, implementation and management of EU Cohesion

Instruments(Structural Funds and Cohesion Fund)

In this respect IPA follows the same logic as the EU Cohesion Policy Instruments (especially in

terms of programming and implementing structures), but still takes into account the specifics of

each beneficiary country (candidate or potential candidate).

Assistance th rough IPA can take the fo llowing forms:

Investment (works), supplies, servicesor subsidies (grants)

Administrative cooperation, involving experts sent from Member States (e.g. twinning) or

cross-border cooperation

Budget support(granted exceptionally and subject to supervision)

IPA legal basis

Council Regulation 1085/2006, adopted on 17 July 2006 (establishing the instrument) Commission Regulation718/2007of 12 June 2007 (IPA Implementing Regulation)

Commission Regulation80/2010 of 28 January 2010 amendingRegulation 718/2007 and

Regulation 1085/2006

Framework Agreements signed between the Commission and the beneficiary countries

aiming at setting and agreeing the rules for co-operation concerning EC financial assistance to

the beneficiary country. Assistance under the IPA Regulation can only be granted to the

beneficiary country after the framework agreement has been concluded and has entered into

force.(article 7 of the IPA IR 718/2007)

Sectoral Agreements relating to a specific IPA components drawn up, where appropriate,

between the Commission and the beneficiary country, and setting out the relevant provisions to

be respected which are not contained in the country specific framework agreement or financing

agreements. Where a sectoral agreement has been concluded with the beneficiary country,

assistance under the IPA Regulation can only be granted, under the IPA component concerned

by the sectoral agreement, after the entry into force of the framework agreement and the

sectoral agreement.(article 7 of the IPA IR 718/2007)


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Financing Agreements signed between the Commission and the beneficiary countries,

following a Commission financing decision approving the Community contribution to a

programme or an operation (for each programme). It completes the technical, legal and

administrative framework and includes detailed and specific provisions for the management,

monitoring, evaluation and control of each Operational Programme, annual or multiannual

agreement.

In order to achieve each country's objectives in the most efficient way, IPA is structured in five

different components:

I. Component I: Transition Assistance and Institution Building aiming at financing

institution building measures (for all countries) and associated investments (for potential

candidates only)

II. Component II: Cross-border cooperation to support cross-border cooperation between

candidate countries/potential candidates and with EU Member States. It may also fund relevant

participation in trans-national co operation programmes (Structural Funds) and Sea Basin

programmes (European Neighbourhood and Partnership Instrument - ENPI);

III. Components III, IV and V: fund-oriented / Mini Structural Funds

Regional development(ERDF and CF) which finances investments and associatedtechnical assistance in areas such as transport, environment and economic

cohesion/competitiveness;

Human resource development(ESF) to strengthen human capital and help combat social

exclusion;

Rural Development(Rural Development Funds) which finances rural development-type

measures and contributes to the sustainable development of rural areas. It also provides

assistance to the restructuring of agriculture and its adaptation to EU standards in the areas

of environmental protection, public health, animal and plant health, animal welfare.

Components III, IV and V are open to candidate countries only, and are designed to mirror

Structural, Cohesion and Rural Development Funds in order to prepare the candidate countries for

the management of such EU funds upon accession. This requires the beneficiary countries to have

adequate administrative capacities and structures to assume the responsibility for the management

of assistance (DIS structures).

Figure 2 Main steps to implementation of IPA III and IV


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Figure 3 General Policy and programing framework

As Figure 3 shows, the policy and programming fr amework for delivering pre-accession

assistance under IPA cons ists of:2

Figure 4 MIFF 2007-2013

Political and Financial Framework: Multi- annual Indicative Financial Framework (MIFF)

which translates in financial terms overall priorities identified within the pre- accession political

framework and gives a breakdown of the financial envelope by horizontal programmes, country and

component, and by administrative expenditure. Normally it is presented as part of the pre-

accession strategy package presented annually by the Commission to Council and Parliament. It is

established for a 3 year period on a rolling forward basis.

2Source: http://ec.europa.eu/enlargement/how-does-it-work/financial-assistance/planning-ipa_en.htm

http://ec.europa.eu/enlargement/how-does-it-work/financial-assistance/instrument-pre-accession_en.htm- Commission staff working document, Background document to the report from the Commission to the Parliament, the Counciland the European economic and social committee 2009 Annual Report on the implementation of the Instrument for Pre-accession Assistance (IPA) COM(2010) 687, Nov 2010


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Strategic planning: Multi-Annual Indicative Planning Documents (MIPD),per country or per

groups of countries (regional and horizontal programmes), following the logic of the MIFF. It is

strategic planning document which, for candidate countries, covers all 5 IPA components and for

the Potential candidates only Components 1 and 2, prepared by the Commission, in close

consultation with the beneficiary country. It translates the orientations established in Accession

Partnership and Regular Reports into specific priorities in line with the National Development Plan

and similar documents. It contains main priorities and related broad indicative financial allocations

and ensures coherence and co-ordination between components.3

Specific programming by country and by component The MIPD is supplemented by

detailed annual or multi-annual programming documents, depending on the component, i.e

Operational programmes.They are developed per component, by the beneficiary country and

submitted to the Commission for approval. The strategic programing document for IPA

Components 3 and 4 is the Strategic Coherence Framework, on the basis of which individual

Operational Programs per components and subcomponents are developed. The Operational

Programmes identify and define appropriate measures and actions to be taken for attaining the

objectives and priorities set out in the MIPD. For each area targeted for intervention, they provide

objectives, expected results, domains of intervention and measurable indicators of achievement.

They are subdivided into priority axes, each of which defines a global objective to attain, andwhich, depending on the IPA component considered, is implemented through measures, which

may be subdivided into operations, or directly through operations. Operations comprise a project

or a group of projects implemented by the Commission, or initiated or initiated and implemented by

one or more final beneficiaries, allowing achievement of the goals of the measure and/or the

priority axis to which it relates.4

Under IPA Component Ithe assistance is programmed by the Commission in the form of

Annual National and Multi -beneficiary programmes, managed either by the

Commission, directly or indirectly, or by the beneficiary, or jointly with other donors, as

appropriate. Annual/national programmes consist of Financing Proposals prepared by the

Commission on the basis of Project Fiches submitted by the IPA beneficiaries, or prepared

by the Commission in the case of regional and horizontal Multi-beneficiary programmes,

following consultation with stakeholders and donors and after the positive opinion of the IPA

Management Committee.5

IPA Component II- Crossborder cooperation - encompasses two strands: crossborder

cooperation between candidate countries/potential candidates and crossborder

cooperation between them and neighbouring EU Member States. Additionally, it may

also support the participation of candidate countries and potential candidates in Structural

Funds' transnational cooperation programmes(financed by ERDF, in the context of the

European Territorial Cooperation objective) and in the European Neighbourhood Policy

Instrument (ENPI) SeaBasin cooperation programmes. Assistance to crossborder

cooperation under Component II is delivered on the basis of MultiAnnual CrossBorder-Cooperation Joint Programmes currently covering the period 2007-2011, jointly drawn up

by the participating countries, and is granted through annual financing decisions which are

also subject to the positive opinion of the IPA Management Committee. Concerning

participation in the ERDF transnational programmes or the ENPI SeaBasin programmes,

IPA assistance is granted through annual Financing Decisions on a countryby country

basis.

Similarly to Structural Funds, programming of Components III and IV is made through

Multiannual Operational Programmes, prepared initially for three years, but which can be

extended to cover additional years. On the basis of the Strategic Coherence Frameworks

3Commission staff working document, Background document to the report from the Commission to the Parliament, the Council

and the European economic and social committee 2009 Annual Report on the implementation of the Instrument for Pre-accession Assistance (IPA) COM(2010) 687, Nov 2010 (p. 5, 6, 7)4Ibid

5Ibid


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and in consultation with relevant stakeholders, candidate countries draft multi-annual

operational programmes per component (Component IV) or per theme/sub-component

(Component III / transport, environment, regional competitiveness) which are then agreed

with the Commission for formal adoption, following consultation of the relevant Member

States Committee: Coordination Committee for the funds (COCOF) for Component III and

COCOF and European Social Fund (ESF) Committee for Component IV.

Based on the approach used for preparing the rural development programmes for the

Member States, Component V assistance is programmed on a multi-annual basis

covering the period 2007-2013. However, in line with the MIPD, the financial envelope was

initially specified for the years 2007-2009 only and is subject to a yearly update in order to

include financial allocations for the subsequent years. After consultations with stakeholders,

the programmes as well as the modifications are adopted by the Commission following

consultation of the EU Member States in the Rural Development Committee (RDC). In view

of the time necessary to set up the fully decentralised implementation system on the basis

of which assistance under component V can be delivered, and based on related SAPARD

experience, financial allocations for Component V follow normally a phasing-in approach

with a back loading of IPA Rural Development funds. Funding for the first four years of the

implementation period (2007, 2008, 2009 and 2010) therefore represents a lowerpercentage of the full Component V allocation, which is due to increase considerably in the

following years. Croatia represents the only exception to this rule as it was the only

candidate country which set up the SAPARD system to profit from SAPARD funds prior to

the implementation of the IPA Rural Development component.

1.1 IPA Implementation structures and modalities

IPA Implementing modalities6

The Pre-accession assistance is implemented through a variety of management modes which take

into account the different levels of preparedness of the beneficiary countries for independent

management of the assistance.

DG Enlargement defines the overall Enlargement strategy (the Enlargement Strategy Paper and

the annual Progress Reports both part of the so called `Enlargement package', published every

autum) and thus coordinates the instrument as a whole.

For individual IPA components, within the Commission:

DG Enlargement (ELARG) manages component I and part of component II

DG Regional Policy (REGIO) manages the part of component II under shared management with

Member States and is responsible for component III

DG Employment, Social Affairs and Equal Opportunities (EMPL) is responsible for component IV

DG Agriculture and Rural Development (AGRI) has responsibility for component V.

In practice, seven different kinds of management modes exist:

Centraliseddirect: funds are managed by the Commission services in Brussels (e.g.

horizontal and multi-beneficiary programmes such as Nuclear Safety and Tempus)

Centralised direct de-concentrated: funds are managed by the EU Delegations under the

supervision of Commission services in Brussels (e.g. most of Component I and Component II

for Albania; Component I for Serbia, Components I and II for Montenegro, Component I for

Kosovo, Components I and II of IPA 2007 and 2008 for Bosnia and Herzegovina);

Centralised indirect: management of funds is delegated to thi rd partiessuch as specialised

EU bodies or national or international public sector bodies (some projects under IPA 2008

6* Commission staff working document, Background document to the report from the Commission to the Parliament, the

Council and the European economic and social committee 2009 Annual Report on the implementation of the Instrument for Pre-accession Assistance (IPA) COM(2010) 687, Nov 2010 (p. 7 &8)* Commission Regulation 718/2007 of 12 June 2007 (IPA Implementing Regulation) (Chapter II)


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Component I for Albania (eg to UNDP) and under IPA 2009 Component I for Bosnia and

Herzegovina (under CARDS EAR);

Decentralised with ex-ante control:funds are managed by accredited national authorities

of the beneficiary, but procurement is subject to ex-ante control by the EU Delegation

(Components I to IV in Croatia and Turkey and Components I, III and IV in the Republic of

Macedonia);

Decentralised w ithout ex-ante control :funds are managed by accredited national

authoritiesof the beneficiary and are not subject to ex-ante controls by the EU Delegation

(component V in Croatia, Turkey and in the Republic of Macedonia (for specific measures only);

Shared: funds are managed by a managing authority located in participating Member

States(Component II CBCs with Member States);

Joint: funds are join tly managed with International Organisations, such as the EBRD,

Sigma, UN agencies (e.g. part of the Multi-beneficiary-programme, infrastructure support projects

in Albania and in Bosnia and Herzegovina under Component I of IPA 2009, parts of Component I

for Kosovo).

Decentralisation without ex ante controls by the Commission is the objective for the implementation

of all IPA components where assistance is implemented on a decentralized basis in accordance

with Article 10 of the IPA IR. The timing for attainment of this objective may vary depending on theIPA Component concerned.

IPA Implementing Bodies/Structures

The above mentioned modalities of implementation function under specific institutional set-ups

which are required by the European Commission. These requirements are linked to specific

system that has to be defined and established, and to specific set ofrules and procedures for

sound financial management of the IPA funds are developed. In order to be operational this

systems need approval/accreditation by the European Commission itself (the procedure of

conferral of management of the powersby the European Commission to the national authorities

of a given country).

According to Article 21 of the IPA IR7, each beneficiary country should designate the following

different bodies and authorities within its IPA Implementing Structure:

Figure 5 IPA Implementing Bod ies

IPA Implementing Bodies

National IPA coordinator (NIPAC)

a high ranking official responsible for

overall coordination of assistance under the

IPA Regulations, and in particular in charge

of:

partnership between the EC and the beneficiary country/

between the accession process and the use IPA overall

responsibility for IPA programming, monitoring and

implementation / coherence and coordination of the

programmes under the respective components annual

programming for TAIB component at national level and forcoordination of CBC programmes (may delegate the task

monitoring and reporting on implementation

Strategic coordinator (SC)

- high-ranking official in the Government of

the beneficiary country

under the responsibility of the national IPA coordinator no

direct involvement in the implementation coordinates the

assistance under the regional development- and the human

resources development components drafts the Strategic

Coherence Framework ensures coordination between sectoral

strategies and programmes

Competent Accrediting Officer (CAO)

- high-ranking official in the Government of

the beneficiary country

responsible for issuing, monitoring and suspending or

withdrawing the accreditation of the National Authorising

Officer and theNational Fund

7Commission Regulation 718/2007 of 12 June 2007 (IPA Implementing Regulation) (Chapter II, subsection 2)


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National Authorising Officer (NAO)

- high-ranking official in the government of

the beneficiary country,

Head of the National Fund

overall responsibility for financial management of EU funds

for the legality and regularity of the transactions

for effective functioning of management and control systems

for issuing, monitoring and suspending or withdrawing the

accreditation of the Operating Structures.

National fund (NF)

- body located in a state level Ministry of the

beneficiary country with central budgetary

competence

Central treasury in charge of financial management of IPA,

under the responsibility of the NAO.

In particular in charge of:

organising the bank accounts

requesting funds from the EC

authorising the transfer of funds from the EC to the operating

structures or to the final beneficiaries

financial reporting to the EC.

Operating Structure (OS)

- body or a collection of bodies within the

administration of the beneficiary country ,

established for each IPA component

management and implementation of assistance under specific

IPA component or operational programme

Caries out a number of functions that include:

drafting the annual or multi-annual programmes

monitoring programme implementation and guiding the work of

the sectoral monitoring committee

drawing up the sectoral annual and final implementation

reports, after their examination by the sectoral monitoring

committee, submitting them to the EC, NIPAC and NAO

ensuring that operations are selected for funding and approved

in accordance with the criteria and mechanisms applicable to

the programmes, and that they comply with the relevant rules

setting up procedures for an adequate audit trail

tendering-, grant award procedures, contracting, making

payments and recovery from the final beneficiaries

ensuring that all bodies involved in the implementation of

operations maintain a separate accounting system

ensuring that the NF and the NAO receive all necessary

information on the procedures and verifications carried out in

relation to expenditure

setting up, maintaining and updating the reporting and

information system

Carrying out verifications to ensure that the expenditure

declared has actually been incurred in accordance with

applicable rules, the products or services have been delivered

in accordance with the approval decision, and the payment

requests by the final beneficiary are correct.

ensuring internal audit of its different constituting bodies

ensuring irregularity reporting

ensuring compliance with information and publicity

requirements.

Programme Authorising Officer (PAO) -

designated as the head of each

Implementing Agency, assisted by a Senior

Programme Officer (SPO). In case of CFCU

as IA, the PAO is the head of the CFCU.

The PAOs, under the overall accountability of the NAO, take

the responsibility for the overall tendering, contracting,

payments, accounting and financial reporting aspects of all

procurement in the context of the IPA component I

programmes

Senior Programme Officers (SPOs)

official usually working with the final

responsible for the technical aspects of the IPA projects

endorse commitments and disbursement documents prior to


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beneficiary, normally head of Project

Implementation Unit

their transmission by the CFCU

technical implementation and reporting / provide input into the

preparation of financial and reporting documents

prepare ToRs/Technical Specifications

submit requests to launch tenders, request to negotiate and

conclude contracts

endorse payments against invoices

may delegate responsibility to a maximum of two officials

within the same Ministry or Agency (the names and signatures

of the delegates have to be communicated to the Commission)

Under IPA II CBC Specific Joint

Structures:

Joint Monitoring Committee (JMC)

\

Joint Technical Secretariat (JTS)


Oversees the programming and implementation of the

programme. Considers and approves selection criteria.

Responsible for selecting projects, but may delegate this task

to a Steering Committee. Examines annual reports. Approves

any proposal to amend the programme

In charge of day-to-day management of the programme.

Assists the JMC and OS in carrying out their duties. Organises

calls for proposals, monitors project implementation.

Responsible for preparing, managing and implementing the

part of the programme relating to the country concerned (with

exclusion of awarding grants, tendering and contracting). OS is

represented in the JMC. Includes an Implementing Agency

responsible for awarding grants, tendering, contracting and

payments.

Under IPA III and IV the OS consists of:

Body Responsible for Operational

Programme (BROP)

Body Responsible for Priority/Measure

(BRP/M)

Coordination of the Operational Programme preparation and

amendmentsand submission to NIPAC for adoption

preparation of proposals for amendments of the financing

agreement of the programme

Evaluation of OPs (ex-ante and interim)

Considers and approves the general criteria for selecting the

operations

Identifies, for each measure, the final beneficiaries, the

expected selection modalities and criteria

Coordination of programme monitoring

Establishment of the sectoral monitoring committee, draw up

rules of procedures; preparing documents on progress made

towards achieving the specific targets of the OP

Coordination and preparation of sectoral annual and final

reports on implementation of the OP

Setting up procedures for an adequate audit trail

Ensuring that all bodies involved in the implementation of

operations maintain a separate accounting system

Ensuring that the NF and the NAO receive all necessary


relation to expenditure

Setting up, maintaining and updating the reporting and

information system

Ensuring internal audit of its different constituting bodies

Ensuring irregularity reporting

Ensuring compliance with the information and publicity

requirements.


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Preparation of the sections of the OPs within its sectoral area

of responsibility, drafting priorities and measures

Support the BROP in identification for each measure, of the

intended final beneficiaries, the expected selection modalities

and possible related specific selection criteria

Preparation of monitoring data/reports

Preparation of documents for SMC on progress made

Contribution to the sectoral annual and final reports on

implementation of the priorities and measures

Approval of the selection modalities/criteria for projects

Preparation of TS/ToRs in cases when BRM/P performs the

role of the beneficiary institution

Sample check of the Tender and Contract dossiers elaborated

by the Implementing Agency

Preparation of Guidelines for Call of proposals and advertising

the call for proposals

Propose members/evaluators to evaluation committees

Participate at the Project Steering Committees

Verification and approval of request for payment

Preparation and submitting to NF necessary information on the

procedures and verifications carried out in relation to

expenditure

Submission to the NF a request for payment

Transfer of national co-financing funds from treasury account

to Implementing Bodys sub-account

Performing on spot checks on a sample basis

Monitoring technical implementation of the projects

Setting up irregularity reporting

Setting up internal audit

Organising the publication of the award list of the final

beneficiaries, the names of the operations and Community

funding allocated to operations

Implementing Agencies (IAs) one (or more)

Implementing Agencie(s) (IAs) established

within the national administration

Most common Implementing Agency under

IPA is a "Central Contracting and Financing

Unit" (CFCU). Implementing Regulation.

responsible for the implementation and management of the

programmes

financial implementation of the programme (procurement,

contracting and payment), in charge of:

the technical aspect of the operations within ministries

assisting the PAO in the good and timely preparation andimplementation of operations at technical level

coordination within each priority axis set down in the

beneficiary country's project proposal

Provide inputs in drafting priorities and measures for annual or

multi annual programmes to the BRM/P

Provision of information in preparation of documents for the

sectoral monitoring committees

Contribute to the preparation of the sectoral annual and final

implementation reports

Directly responsible for procurement, contract implementation

and payments on the project level

Ultimate responsibility for the Tendering process from tender

announcement to contract signature (announcement of

tenders, calls, launch of tenders, evaluation,preparation and


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signature of contract and addenda dossiers)

Preparation of tender documents; verification of TS/ToRs

(procurement) received from Beneficiaries

Verification of the Guidelines for Calls for proposals, prepared

by the BRM/Pand preparation of complete Application package

Provision of clarifications to tenderers, grants applicants

Approval of the composition of the Evaluation Committee/s;

Chairing tender evaluations sessions

Preparation of Evaluation Reports;

Signing contracts;

Supervision of the technical implementation of the project;

Ultimate responsibility for the project financial and accounting

issues

Participation in the Project Steering Committees;

Carrying out verification checks

Preparation of requests for payment and submission to the

BRM/P

Making payments to Contractors/Grant beneficiaries and

recovery of funds to the NF and recovery of funds from, the

final beneficiary/contractor/grant beneficiary;

Maintain a separate accounting system or a separate

accounting codification;

Set up Internal audit;

Ensuring that the BRM/Pand receives all necessary


relation to projects implementation and payments

ensuring an adequate audit trail

Irregularity reporting

Audit Authority (AA)

- is a functionally independent body

Body functionally independent from all actors in the

management and control systems and complying with

internationally accepted audit standards responsible for

auditing the organisational set-up and the functionality of the

structures for management of pre-accession funds and for

verifying the effective and sound functioning of the

management and control systems.

During the course of each year establishes and fulfills an

annual audit work plan which encompasses audits aimed at

verifying the effective functioning of the management andcontrol systems, and the reliability of accounting information

provided to the Commission

Final Beneficiaries of the assistance beneficiaries of the projects financed by IPA operations - line

ministries and other public authorities; water, rail or

roadcompanies; regional waste operators; RDAs,

municipalities; SMEs; farmers, NGOs

preparation of project documentation (e.g. project fiches or

draft ToRs);

application for IPA funds

organization for project implementation (personnel, technical

assistance, internal control mechanisms, etc.);

informing the public

implementation and completion of projects

Monitoring Committees makes proposals to the EC, the NIPAC and the NAO for any


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The IPA monitoring committee - - members:

representatives of the EC, the NIPAC, the

NAO, OS, and the SC (co-chaired by EC and

NIPAC).

Sectoral Monitoring Committees - set up

under the IPA components, attached to

programmes or components

actions to ensure the coherence and coordination between the

programmes and operations implemented under the different

components, as well as for any crosscomponent corrective

measures needed to ensure the achievement of the global

objectives of the assistance provided, and to enhance its

overall efficiency.

may also make proposals to the relevant sectoral monitoring

committee(s) for decisions on any corrective measures to

ensure the achievements of programme objectives and

enhance the efficiency of assistance provided under the

programmes or IPA component(s) concerned.

may make proposals to the EC, the NIPAC and NAO for

decisions on any corrective measures to ensure the

achievements of programme objectives and enhance the

efficiency of the assistance provided.

reports to the IPA monitoring committee and provides it in

particular with information relating to:

the progress made in implementing the programmes, by

priority axis and, where relevant, by measures or operations;

including the results achieved, financial implementation

indicators, and other factors and a view for improving the

implementation of the programmes;

any aspects of the functioning of the management and control

systems raised by the audit authority, the national authorising

officer or the competent accrediting officer.


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Figure 6 IPA Implementing Structures in Croatia

Source: The official web-site of the CODEF (NIPACs office): http://www.strategija.hr/en/funds/ipa-programme/about-ipa-programme


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Figure 7 IPA Implementing Structures i n Turkey

Source: PPT CFCU-1st SENIOR PROGRAMME OFFICERS PERIODICAL ROUND TABLE MEETING, Ankara, April 2009


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Figure 8 IPA Implementing Structures in Macedonia

Source: Government of the Republic of Macedonia, Secretariat for European Affairs


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Figure 9 IPA Implementing Structures component 1 in Macedonia . Source: Government of the Republi c of Macedonia, Secretariat for European Affa


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Figure 10 IPA Implementing Structures Component 1 Serbia

Source: PPT Operating Structures under IPA III & IV: relationship to NIPAC, SCO, NAO & National Fund, by Iain Mackie, 10 July 2009, An EU-funded project i


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Figure 11 IPA Implementing Structu res Compinent 1 Montenegro

Source: The official web page of the CFCU: http://www.mf.gov.me/en/organization/sector-for-contracting-eu-assistance-funds?pagerIndex=2

Internal Audit Department

Internal Audit Departments*

Programme impl

launching tender

planning and re

Commission rela

provision of the

technical imple

IPA funds;

assistance in p

preparation of t

tender dossiers; submission of t

proposal for ne

authorizing pay

(confirmed/read

role

role

roleP

Central Financing and Contracting Unit

Responsible Person: CFCU - PAO Coordinator

Operational Structure for IPA Component 1

Internal Audit Department

MoF

Secretariat for European Integration

Responsible Person: SEI Secretary General

SPO Units in Line Ministries

Responsible person: Senior Programming Officer (SPO)

- Ministry of Transport, Maritime Affairs and

Telecommunications,

- Ministry of Tourism and Environmental Protection,

- Ministry of Finance,

- Ministry of Foreign Affairs,

- Ministry of Culture, Sports and Media,

- Ministry of Agriculture, Forestry and Water Management,- Ministry of Justice,

- Ministry of Education and Science,

- Ministry of Internal Affairs and Public Administration,

- Ministry for Economic Development,

- Ministry for Human and Minority Rights Protection,

- Ministry of Health, Labor and Social Welfare.


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Figure 13 IPA Implementing Struc tures CBC Romania - SerbiaSource: CBC Program Romania Serbia 2007-2013 /DESCRIPTION OF MANAGEMENT AND CONTROL SYSTEMS FOR ROMANIA-REPUBLIC OF SERBPROGRAMME pursuant to Article 115 of Regulation (EC) 718/2007)


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Figure 14: IPA Implementing Structu res CBC Bulgaria Macedonia

Source: CBC Program Bulgaria Macedonia 2007-2013: http://www.ipa-cbc-007.eu/upload/docs/3_IPA_CBC_P_BG_fYRoM_September_18


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27

IPA Implementing Structures CBC Montenegro Serbia

Source: http://www.cbcsrb-mne.org/index.php?option=com_content&view=category&id=41&Itemid=67&lang=en

The IPA Cross Border Cooperation Programme Serbia - Montenegro is implemented under Centralized

Implementation System. In both countries the European Commission is the Contracting Authority,

approving calls for proposals documentation; composition of joint steering committees; the evaluation reports;

Sitting in the joint monitoring committee in an advisory capacity; Signing contracts with grant beneficiaries,

including budget revisions (with support provided as appropriate by OSs and JTS).

A Joint Technical Secretariat (JTS) was established by joint agreement between the two countries. It is

responsible for the day-to-day implementation of the CBC Programme. Also, the JTS ensures the liaison

between the Operating Structures. It is jointly managed by both Operating Structures, and it is based in

Prijepolje, Republic of Serbia. An antenna in Montenegro is in Bijelo Polje. The JTS is managed by the Head of

the Secretariat and has international staff, including both Montenegrin and Serbian nationals, appointed by both

Operating Structures.

The overall monitoring of the programme implementation lies within the competencies of the Joint Monitoring

Committee (JMC). The composition of the JMC includes representatives of the two beneficiary countries,

Serbia and Montenegro, who have an equal status in the JMC. A representative of the Operating Structure of

one of the participating countries chairs the JMC. The JMC is responsible for the joint selection of the projects incompliance with the selection procedure and criteria, which is based, to a large extent, on PRAG. The JMC

have the main tasks of selecting individual project applications on the basis of the assessment of projects done

by joint Steering Committees (which fulfil the role of the Evaluation Committee), and in coordination with other

Community and national programmes and policies taking into consideration the project's relevance for the

objectives and priority axes of the Programme.The JMC reviews and formally approves the evaluation report

and the award proposals prepared by the joint Steering Committee and transmits them, with recommendations

as appropriate, to the EC Delegations (contracting authorities) through the Oss.

Operating Structures: The bodies and designated heads (IPA-Component II co-ordinators) are appointed by

the National IPA Co-ordinators for overseeing their country's participation in IPA-Component II programmes

(Operating structures). The operating structures (Ministry of European Affairs of Montenegro and the EU

Integration Office of Serbia) are responsible for programming and technical implementation of the programme

and are designated and put in place by the beneficiary countries. They are preparing the cross-border

programme in accordance with Art 91 IPA Implementing Regulation; Nominating their representative(s) to the

joint monitoring committee; Establishing the Joint Technical Secretariat (JTS) and recruiting its staff; Preparing

and implementing the strategic decisions of the JMC, where necessary with the support of the JTS; Establish a

system, with support from the JTS, for gathering reliable information on the programme's implementation and

provide relevant information to the JMC, IPA-Component II co-ordinators and EU Commission; Ensuring

implementation quality of the cross-border programme, together with the JMC, inter alia by monitoring with

reference to indicators as per Art 94 (1) (d) IPA Implementing Regulation;Timely submission of the annual and

final reports as per Art 144 IPA Implementing Regulation to the national IPA co-ordinators and the Commission,

following examination by the JMC; Ensuring the monitoring of commitments and payments at programme level;Ensuring that grant beneficiaries make adequate provisions for project progress and financial reporting

(monitoring) as well as sound financial management (control); supporting the Contracting Authorities, as

appropriate (e.g. by providing models for tender documentation, reviewing grant project budgets, drafting

contracts and related documentation to acquire consultancies, goods and services required for the pursuit of the

activities of grant beneficiaries or under the TA priority axis for approval and further handling by Delegation of

European union in Belgrade and Podgorica). This task may be delegated to the Joint technical secretariat;

ensuring grant beneficiaries are supported in carrying out procurement procedures. This task may be delegated

to the JTS; Organising information and publicity-actions with a view to awareness raising of the opportunities

provided by the Cross-border Programme, or mandating the JTS to support these or to carry them out (including

drafting an information and publicity plan for adoption by the JMC); If so mandated by the JMC, preparing

revisions or examinations of the Cross-border programme likely to make possible the attainment of the

objectives referred to in art 86(2) IPA Implementing Regulation or to improve its management.


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Figure 15: IPA Implementing Structures Component 3 and 4 General FrameworkSource: PPT made jointly by DGs AGRI, EMPL and REGIO on IPA Components III, IV and V: Conditions for successful preparation and absorption of assistan

Contractors, Grant Beneficiaries

National Authorising Officer

National Fund

MonitoringCommittee

IPA

Monitoring

Committee

European CommissionCompetent

Accrediting

OfficerNational IPA

Co-ordinator

BROP (MA)

Head of OS

IA

Head of BRPM

IA BRPM IAIB

Head of IB

IA

Strategic Co-ordinator


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Figure 16: IPA Implementing Structur es Component 3 and 4 Serbia

Source: PPT Operating Structures under IPA III & IV: relationship to NIPAC, SCO, NAO & National Fund, by Iain Mackie, 10 July 2009, An EU-funded project i


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Figure 17: IPA Implementing Structur es Component 3 and 4 Macedonia

Source: HRD OP 2007-2013 and Regional Development OP 2007-2009


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Figure 18: IPA Implementing Structures Component 3, subcomponent Regional Competitiveness CroatiaSource: PPTOperating Structures under IPA III & IV: relationship to NIPAC, SCO, NAO & National Fund, by Iain Mackie, 10 July 2009, An EU-funded project i


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Figure 19: IPA Implementing Structures Component 3, subcomponent Regional Competitiveness Turkey (Ministry of Industry and Trade)

Source: ECORYS, Inception Report for the RCOP TA project

MinisterUndersecretary

DeputyInternalAudi t

REGIONAL COMPETITIVENESS PROGRAMME

COORDINATION AND IMPLEMENTATION

Programming

Department

Monitoring

and

Evaluation

Technical

Implement.

Departmen

Quality

Assurance

Finance

and Contracts

Programming

Division

Publicity

Division

TA&HR

Monitoring

Division

Evaluation

Division

Planning

Division

Implementation

Division

Control

Division

Risk

Management

Staff dissemination

of the Centre

Contract

Division

Finance

Division


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Figure 20: IPA Implementing Structures Component 3, subcomponent Transport Turkey

Source: Transport Operational Program Turkey 2007-2009


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Figure 21: IPA Implementing Structures Component 3, subcomponent Environment Croatia

Source: Environmental Operational Program Croatia 2007-20098

8All Operational programs of all IPA countries, and for all components are available on: http://ec.europa.eu/enlargement/how-does-it-work/financial-assistance/planning-ipa_en.htm

PRIORITY AXIS MEASURE OPERATING STRUCTURE

Body responsible for OP (=Head of Operating Structure):

The Ministry of Environment Protection, Physical Planning & Construction (MEP

Directorate for Strategic and Integration Processes in Environmental Protection

Measure Line Ministry

Body responsibl e for priori ty/measure

Implementing Body

1. Development of w aste

management

infrastructure for

establishing an

integrated waste

management system in

Croatia

1. Establish ment of new waste

management centres at

county/regional levels

MEPPPC, Directorate for Strategic and

Integration Processes in Environment

Protection

Environmental Protection and Energy

Efficiency Fund

2. Remediation of sites highly

polluted by w aste (hot spots)



Protection

Environmental Protection and Energy

Efficiency Fund

2. Protecting Croatias

water resources

through impro ved water

supply and integrated

wastewater

management

1. Establishment of modern water

supply systems and networks

Ministry of Regional development,

Forestry and Water Management,

Directorate for Water Policy and

International projects

Croatian Water

2. Construction of waste water

treatment plants and building /

upgrading of sewerage network

Ministry of Regional development,

Forestry and Water Management,

Directorate for Water Policy and

International projects

Croatian Water

3. Technical Assistance 1. Operational Programme

management and capacity building



Protection


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Figure 22: IPA Implementing Structur es Component 3 Serbia

Source: Government of Republic of Serbia, Office for EU Intergration


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Figure 23: IPA Implementing Structures Component 3 AlbaniaSource: PPT from a workshop on DIS roadmap for III and IV, Tirana, Sept 2010


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Figure 24: IPA Implementing Structures Component 4 Turkey

Source: HRD OP Turkey 2007-2013


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Figure 25: IPA Implementing Structur es Component 4 Serbia

Source: Government of Republic of Serbia, Office for EU Intergration


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Figure 26: IPA Implementing Structures Component 4 AlbaniaSource: PPT from a workshop on DIS roadmap for III and IV, Tirana, Sept 2010


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Figure 27: IPA Implementing Structur es Component 5 - Overal FrameworkSource: PPT Pre-accession support for the agricultural sector IPARD, by Werner Schiessl, Zagreb, 12 June 2009


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Figure 28: IPA Implementing Structures Component 5 Turkey

Source: IPARD Program Turkey 2007-2013


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Figure 29: IPA Implementing Structures Component 5 - Serbia

Source: IPA Instrument za pretpristupnu pomoEU 2007-2013, Grupa autora, (IPA Instrument for pre-accession assistance EU 2007-2013, Gropu of Author


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M 1.3 IPA Implementing Structures Module

43

Implementing structures differences between IPA and the Structural Funds

IPA Structural Funds Roles

Programing and Implementation

NIPAC

Strategic Coordinator for III and

IV

Competent Acredinting Officer


BROP

BRP/M

Implementing Agency (CFCU)

Beneficiaries

Central Coordination Unit

Coordinating Body for

NSRF

/

Managing Authority (MA)

Intermediary Body (IB)

Beneficiaries

Overall coordination of the programing and

monitoring of the implementation &

Coordination of IPA I and II

Coordination of IPA III and IV

National Accreditation of the OS

OP preparation and Implementation

Priorities/measures Implementation

Procurement, contracting, payment

Project preparation and implementation

Financial Management

National Authorising Officer/NF

Audit Authority

Certifying Authority

Audit Authority

Payments and verifications

Auditing

Monitoring Committees

IPA MC

Sectoral MC

Monitoring Committees

For NSRF

For individual OPs

Overal Monitoring (for all V components)

Sectoral Monitoring per Component

III. DIS - Accreditation Process and Conferral of Management of powers

The system of management of EU funds includes the whole programe cycle (programming,

launching of tenders, contracting, payments to the end-users and contractors, implementation,

monitoring and evaluation of the overall process). The objective of the decentralized management

is to establish the ownership over the proograme cycle and to enable the candidate and potential

candidate countries to independently implement European Union financed projects and hence to

prove their ability of assuming all responsibilities and obligations related to the full membership of

the European Union. As shown in section B, the countries are expected to establish operational

structures and procedures for independent management and implementation of the assistance.

Once the European Commission is assured that those structures and procedures are ready to take

over the responsibilities from the EU delegations, it will confer to them the management powers,

i.e will issue them with accreditation for decentralized management of EU funds. There are

two phases in the decentralisation process: In the first phase the decentralization process is based on the principle of ex-ante controls

(DIS).Before making the decision on conferral of management powers, the EC must ensure the

effective functioning of the management and control system concerned as stated in art.11 of the

Commission Regulation (EC) No.718/2007. Furthermore, the Commission Decision on the

conferral of management powers, willl lay down a list of activities performed by the beneficiary

country regarding the tendering of contracts, launch of calls for proposals and the award of

contracts and grants, for which there will be an ex- ante control performed by the Commission.

This list may vary with the component or the programme. The ex-ante controls apply, depending

on the component or programme, until the Commission allows for decentralised management

without ex-ante controls (EDIS) as referred to in Article 18 of the Commission Regulation (EC)

No.718/2007.


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44 M 1.3 IPA Implementing Structures Module

In the second phase the decentralization process the assistance under IPA is implemented

through fully decentralised management according to the Article 18 of the Commission

Regulation (EC) No.718/2007 without ex-ante control by the Commission (Extended

Decentralised Implementation System - EDIS). The implementation of the IPA component 5

is only possible under EDIS.

Before deciding to confer management powers relating to a component, a programme or a

measure to the beneficiary country, the Commission shall satisfy itself that the country concerned

meets the conditions of Regulation (EC, Euratom) No 1605/2002, in particular as regards the

management and control systems established, and that the accreditations as laid down in Articles

12 and 13 are in force.

In the process of decentralized management of pre-accession funds (DIS) the accreditation

represents the process of assessing the readiness of certain structures for the initiation of

management and use of EU funds in accordance with clearly defined criteria. It represents a

confirmation by the European Commission (EC) that the established structures are eligible to

manage and use European funds, in such a way that the programming and programme

implementation can be carried out independently by the country itself in accordance with defined

procedures and manuals, etc.

As part of the accreditation process the country needs to define so called DIS Road Map

document that clearly defines timeframe for the steps and actions to be taken as well as

indicatorsfor measuring the conditions for a country to be conferred management powers under

decentralized implementation system for EU funds.

Basic accreditation preconditionsthat need to be fulfilled are as follows:

Established structures

Staffing and procedures approved

Conducted self assessment

National accreditation obtained

In addition, the established the system should function in a way that it aims at the following

objectives:

Effectiveness, efficiency and economy of activities

Reporting reliability

Protection of assets and information

Protection from and identification of frauds and irregularities

Adequate risk management related to the regularity of important transactions, taking into

consideration multi annual programme characteristics as well as the payment nature.

There are several phases in accreditation procedure, which characteristics are given bellow:

Stage Zero Establishing the framework for the management and control systemIn this phase CAO, usually represented by the Finance Minister establishes the general

framework for the management and control system for IPA in accordance with the objectives,

principles ad rules defined by the IPA IR. In that way, CAO defines criteria for the appointment of

NAO and appoints a person meeting criteria for NAO, and NAO in consultation with the NIPAC

appoints PAO. It is necessary to define institutional and organizational structure which is important

to fulfill minimum criteria set forth in the Annex of the IPA IR, and moreover to establish the

management system with the defined procedures and internal controls.

Stage One - Gap Assessment

The objective of this phase is to asses the state of the established instit utions in the system,

i.e whether the pre-conditions for the establishment of DIS are fulfilled, as well as to identify the

necessary activities and further steps to be takenin order the system to be fully functioning, i.e


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45

ready for conferral of the powers. The specific.activities to be taken in this phase are as follows:

definition of existing operational structures and procedures, including procedures for public internal

and financial control, procurement procedures, performed audits and moreover it is necessary to

establish to which extent the public internal financial control is harmonized with the European Union

requirements. The assessment results and appropriate evaluations are given in a Gap

Assessment Report (GAR) based on auditors report. The document elaborates the current state

of play in all institutions, identifying all unconformity elements, i.e. procedures that proved to be

inappropriate, as well as recommendations improvement accompanied with a suitable timeframe for

the fulfillment of the activities. The report includes a table with all the requirements and defines

responsible persons.

Stage Two - Gap plugging

This phase is used to fill-in the gaps / correct the weaknesses and implement the

recommendations set forth in the GAR with the overall objective to fully fulfill the

requirements for DIS. In this phase the necessary changes and improvements in the specific

institutions, in accordance with the recommendations of the GAR are made. The activities to be

undertaken are as follows:

- Development of detail Action Plan, with clearly defined responsibilities and final deadlines tocomplete the activities,

- Development of manuals for the financial management and control procedures, as well as

manuals for the audit operations.

Stage Three - Compliance Assessment

This phase represents the most important phase in the process, because it determines the

obtaining of a positive accreditation. Prior to submitting the accreditation package (formal request

for accreditation) to the EC, in order to asses the readiness for the accreditation, the national

authorities must implement the compliance assessment (sometimes called the national

assessment or self - assessment) procedure. The EC is requiring national authorities to asses

themselves if they are ready to submit the accreditation request. This phase enables competent

structures responsible for the financial management of the EU funds to determine whether all

preconditions for the formal application o f the country for the DIS are fulfilled in accordance

with the Annex of the IPA IR (defining accreditation criteria), and in accordance with the Article 12

(2), of the IPA IR, i.e. whether structures have reached the level which is necessary for the

fulfillment of the EU requirements. This requirement is checked by engaging independent

auditing firm by the national authorities. Hence, the process starts when the Competent

Authorizing Officer (CAO) contacts the auditing firm to implement the compliance assessment. In

principle, CAO is accrediting the National Fund, i.e. NAO, and NAO is accrediting the

Operational structure, i.e. PAO. At the end of this phase a Compliance Assesment Report is

prepared.

Stage Four - National Accreditation and the submission of application for the conferral of

management powers (accreditation package)

In this phase the national accreditation is formally issued as defined in the IPA IR and the

request/application for the conferral of management powers is submit tedto the EC (so called

accreditation package). This means that NAO and CAO, on the basis of the results of the

Compliance Assessment Report and the independently conducted audit, submit to the EC the

request for the conferral of management powers. The request is submitted independently for

each IPA componentor programme, in order to enable the management over all IPA components

on decentralized basis. Along with the request the Accreditation Package must be submitted. The

accreditation package relates to the documents that are necessary to submit to the EC in order to

support the requirement for the conferral of management powers on decentralized basis within IPA.


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NAO collects all the necessary documents (including all the manuals and rules of procedures for

functioning of the Operating structure) and sumbitts them to the EC.

Stage Five Preparation for the EC decision and Conferal of the Management Powers

While the first four phases in the process are the exclusive responsibility of the beneficiary country

of the pre accession assistance, this last phase represents the obligation of the EC. Following the

official submission of accreditation package, the EC is checking by performed audits (performed by

the Commission) twice reviewing all set of documents submitted in the form of accreditation

package, as well as on-the-spot verifications meaning conducting meetings with the key

players in the DIS process in the country. The process of adopting the decision whether to accredit

the country or not may last for several months. In many cases the EC issues recommendations in

its audit report aimed at improving the overall system before the conferral has been granted. In

case of absence of recommendations that may suspend the accreditation, the EC makes the

decision of conferral of management, i.e. accreditation of DIS in accordance with the Article 14 of

the IPA IR (DIS by retaining ex-ante control by the Commission).

IV (E)DIS Structu res and Accreditation State of play per country 9

Candidate countries

Croatia

Croatia has been accredited fo r DIS for implementationof CARDS and Phare in 2006 (with the

CFCU as, the only implementig body/contracting authority) and for IPA I, II, III and IV at the end of

2008 (when new implementing bodies were established, along with the CFCU). As far as IPA V is

concerned, the IPARD agency was accredited in 2006 (EDIS on the basis of individual measures).

In the last year the national institutions of IPA I-IV are intensively preparing for EDIS as

preparatory work for implementation of the Structural Funds upon accession (in July 2013).

The management system for IPA Component I,TAIB, is made up of the following bodies:

National IPA Co-ordinator (NIPAC)- this role is carried out by the State Secretary in the

Central Office for Development Strategy and Coordination of EU Funds (CODEF).

Competent Accrediting Officer (CAO)- performed by the Minister of Finance.

National Authorising Officer (NAO)- performed by the State Secretary of the Ministry of

Finance being the Head of the National Fund at the same time.

National Fund (NF)- a body within the Ministry of Finance. It acts as the State Treasury.

Programme Authorising Officer (PAO)- performed by the Director of the Central Financing

and Contracting Agency (CFCA)and is responsible for the operations of the CFCA.

Contracting Authority- the Central Financing and Contracting Agency(CFCA)

Audit Authori ty - theAgency for the Audit of European Union Programmes (independent fromall other stakeholders within the management and control system).

Senior Programming Officer(SPO) - a state official/highly ranked civil servant within the

beneficiary institutionsunder the framework of the IPA Component I programs, in charge of the

efficient and timely technical implementation of projects on the part of the Programme

Authorising Officer.

9source: Commission staff working document, Background document to the report from the Commission to the Parliament, the

Council and the European economic and social committee 2009 Annual Report on the implementation of the Instrument for Pre-accession, Assistance (IPA) from 25 November 2010)http://www.strategija.hr/en/funds/ipa-programme/about-ipa-programme


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47

Project Implementation Uni t (PIU) - an organizational unit or project team with the beneficiary

institutionwhich is developing project proposals and implementing projects within the framework

of the available programs and is responsible for the following tasks:

Final Beneficiaries- entities benefitting from the projects, responsible for preparation of project

documentation, application for funds, organization for project implementation, informing the

public, implementation and completion of projects.

The management system for IPA Component II Cross-Border Cooperation is made up of the

following bodies:

The Ministry for Regional Development, Forestry and Water Management(MRDFWG) has been

entrusted with the management of IPA Component II (Managing Authority), whereby the

Agency for Regional Development (ARD) is responsible for financial management of EU

programs and projects as the Implementing body responsible for contracting and

implementation of three cross-border cooperation programs for non-Member States (Croatia-

Bosnia and Herzegovina, Croatia-Montenegro, Croatia-Serbia) as well as two transnational

programs, South East Europe (SEE) and Mediterranean (MED). (After the accreditation in 2010,

it took over this role from the CFCA). The ARD and MRDFWF make up the Operating Structure.

The management system for IPA Component III Regional Developmentis made up of the

following bodies:

Strategic Co-ordinator- The Deputy State Secretary of the Central State Office for

Development Strategy and Co-ordination of EU Funds(CODEF)

Operating Structure- Each Operational Program (Transport, Environment and

Competitiveness) has its own Operating structure with CODEF as overall strategic coordinator

responsible for the co-ordination of the Regional Development Component.

IIIA Regional Competiti veness OP

Body responsible for the OP(Head of Operating Structure): The Ministry of Economy, Labour

and Entrepreneurship (Division for Preparation and Implementation of EU Programmes and

projects)

Head of the Operating Structure: the State Secretary of the Ministry of Economy, Labour and

Entrepreneurship

Bodies within the OS responsible for individual pr iorities and measureswithin the OP:

Various Line ministries:

Ministry Regional Development, Forestry and Water Management (Directorate for

Integrated Regional Development)

Ministry of Economy, Labour and Entrepreneurship (Directorate for SMEs and

cooperatives, Directorate for Investment and Export promotion and the Division for

Preparation and Implementation of EU projects)

Ministry of Science, Education and Sports (Directorate for Science)

ImplementingAgency:

The Central Financing and Contracting Agency is the Implementing Agency for all the

priorities/measures under the program.

The Sectoral Monitoring Committee (SMC) is co-chaired by the State Secretary of the

Ministry of Economy, Labour and Entrepreneurship (MELE) and a representative of the

Commission.

IIIB OP Transport

Body responsible for the OP and for the implementation of the individual prioriti es and

measureswithin the OP: The Ministry of Sea, Transport and Infrastructure (Directorate for

Strategic Infrastructure projects)


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Head of Operating Structure: The State Secretary of the Ministry of Sea, Transport and

Infrastructure.

ImplementingAgencies :

The Croatian Railways Infrastructurefor the Priorities/measures related to the rail transport

system

The Central Financing and Contracting Agency for the priorities/measures related to the

Upgrading Croatias inland waterway system and the measures under Technical

Assistance.

TheSectoral Monitoring Committee(SMC) is co-chaired by the State Secretary of the Ministry

of Transport and a representative of the Commission.

IIIC OP Environment

Body responsible for the OP:The Ministry of Environment Protection, Physical Planning and

Construction(Directorate for Strategic and Integration Processes in Environmental Protection).

Head of Operating Structure: The State Secretary of the Ministry.

Bodies within the OS responsible for individual pr iorities and measureswithin the OP:

The Ministry of Environment Protection, Physical Planning and Construction(Directorate

for Strategic and Integration Processes in Environment Protection) The Ministry of Regional development, Forestry and Water Management(Directorate for

Water Policy and International projects)

Implementing Agency/Bodies:

The Environmental Protection and Energy Efficiency Fundand

The Croatian Watersare Implementing Bodies for specific priorities/measures under the

program.

The Central Financing and Contracting Agency is the Implementing Agency for the

Technical Assistance Measures.

TheSectoral Monitoring Committee(SMC) is co-chaired by the State Secretary of the Ministry

of Environement and a representative of the Commission.

The management system for IPA Component IV Human Resources Developmentis made up of

the following bodies:

Strategic Co-ordinator- The Deputy State Secretary of the Central State Office for

Development Strategy and Co-ordination of EU Funds(CODEF)

Operating Structure:

Body responsible for the OP: The Ministry of Economy, Labour and Entrepreneurship

(Directorate for Labour and Labour Market, Department for European Integration and

Project Management)

Head of Operating Structure: The State Secretary for labour.

Bodies within the OS responsible for individual priorities and measures within the

OP:

The Ministry of Economy, Labour and Entrepreneurship (Directorate for Labour and

Labour Market, Department for European Integration and Project Management)

TheMinistry of Health and Social Welfare(Directorate of Social Welfare Department for

Humanitarian Aid and Cooperation with Civil Society Organizations)

TheMinistry of Science, Education and Sports (Directorate for Secondary Education)

Implementing Bodies:

The Croatian Employment Service(Department for Contracting and Financing) and

The Agency for Vocational Education and Training (Department for Financing and

Contracting of IPA)


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49

The Sectoral Monitoring Committee (SMC) is co-chaired by the State Secretary of the

Ministry of Economy, Labour and Entrepreneurship and a representative of the

Commission.

The management system for IPA Component V Rural Developmentis made up of the following

bodies:

Managing Authori ty/ Body responsible for the OP: the Ministry of Agriculture, Fisheries and

Rural Development(Directorate for Rural Development)

Implementing Body(IPARD Paying Agency): The Paying Agency for Agriculture, Fisheries

and Rural Development

The Republic of Macedonia

In Macedonia, the institutional framework for Decentralised Implementation Structures (DIS) is

already established for all five IPA components and it is operating under the rules for

decentralized management of EU Funds (with exeption for Component II where the EU

delegation acts as contracting authority). The European Union granted conferral of

management powers to the national authorities for decentralised implementation of IPA assistancewith ex-ante control, under Components III and IV in 2009. The conferral of management powers

without ex-ante control (EDIS) for Component V (for three measures) was granted also in 2009,

while the conferral of management powers for Component I was awarded in December 2010. The

Accreditation package for IPA Component II is planned to be submitted to EC towards the end of

2011/beginning of 2012. The operating structures under components I, III and IV are preparing for

EDIS.

Key authorities and bodies operational andmandated to manage the IPA assistance under DIS in

the country are:

National IPA Coordinator (NIPAC): Secretariat for European Affairs, responsible of ensuring

overall coordination of IPA assistance and bears the overall responsibility for the coherence and

the coordination of the programs provided under the IPA Regulation, including overall

coordination of the programming for all IPA Components and the annual programming for the

transition assistance and institution building component at national level, as well as for the

coordination of the participation of the beneficiary country in the relevant cross-border

programs.

National Authorising Officer (NAO) the Head of the National fund in the Ministry of Finance

manages the operations of the National Fund and has the overall responsibility for financial

management of EU funds.

National Fund (NF)- is a central treasury body in the Ministry of Financethrough which the

pre-accession funds from the European Communities are transferred to the national level andwhich implements and ensures efficient and effective functioning of the management and

control systems.

Competent Accrediting Officer (CAO) the Minister of Finance, responsible for issuing,

monitoring and suspending or withdrawing the accreditation of the NAO and the NF.

Strategic Coordinator the Deputy Prime Minister for Economic Affairs, Responsible for

ensuring co-ordination of the assistance under Regional Development Component and Human

Resources Development Component.

Central Financing and Contracting Department (CFCD)in the Ministry of Finance - is the lead

body within the Operating structures for Components I, II, III and IV, solely responsible for

carrying out tendering, contracting, recording the transactions in the accounting system and

executing payments upon concluded contracts for projects financed within the IPA Components


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I, III and IV, in line with the IPA decentralised implementation system. (Functions as Body

responsible for management of the OPs and as Implementing Agency )

Head of Operating Structure (HOS)/ Programme Authorising Officer (PAO) The Director

of CFCD manages the Operating Structures for implementation of IPA Components I, II, III and

IV for DIS with ex-ante control. The Programme Authorising Officer/ Head of Operating

Structure is responsible for management and implementation of the National Programme for

IPA Component I and the respective Operational Programmes by IPA Component, in line with

the principles of sound financial management and supervision over the implementation and the

execution of projects financed under IPA, according to the signed Operational Agreements.

Senior Programme Officers (SPOs) and IPA Coordinators, responsible for the technical

aspects of the projects to be implemented within the Line Ministry or the Beneficiary Institution,

helping the Programme Authorising Officer/Head of Operating Structure in adequate and timely

project preparation and implementation.

- TheSenior Programme Officeris an authority appointed within the Line Ministry or the

Beneficiary Institution under IPA Component I.

- The IPA Coordinatorsrelate to implementation of Operational Programmes under IPA

Components II, III and IV.

IPA II Ministry of Local Self Government IPA III Ministry of Transport and Ministry of Environment and Physical Planning

IPA IV Ministry of Labor and Social Policy

Beneficiary Institutions (BI) The Line Ministries/Beneficiary Institutions are part of the

respective Operating Structures are responsible for programming, technical implementation and

monitoring. The CFCD operates in close liaison with the Line Ministries/ Beneficiary Institutions,

while the Head of OS bears the overall responsibility and exercise supervision for

projects/programmes implementation.

Managing Authority for IPARD: Ministry of Agriculture and IPARD Paying Agency as an

Implementing Agency. IPARD PA is an autonomous state administration body and as part of

the Operating Structure for the fifth IPA Component, is responsible for implementation and

efficient management, i.e. tendering, contracting, payments and accounting of all projects under

the fifth IPA Component, except for the technical assistance measure, for which the final

beneficiary and implementing agency are the Managing Authority of IPA Rural Development

Programme.

Audit Authori ty (AA) -as a functionally independent body from all actors in the management

and control systems is designated by the Beneficiary country and complies with internationally

accepted audit standards. AA is responsible for the verification of the effective and sound

functioning of the management and control systems.

Montenegro

IPA assistance to Montenegro (Components I and II) is still managed by the EU Delegation onbehalf of the Montenegrin authorities (centralised management). Since December 2010, as

candidate country, Montenegro is also eligible for IPA Components III, IV and V but the

implementation of these two components is preconditioned by the accreditation of the (E)DIS.

In 2008, the Government of Montenegro initiated the activities towards the establishment of a

Decentralized Implementation System (DIS) for the management of the IPA funds. The

Government of Montenegro has adopted the Decree on the organization of decentralized

management of IPA of the European Union (Official Gazette of Montenegro, No. 33/11),

complementing the provisions of the Law on Ratification of the Framework Agreement signed

between the Government of Montenegro and the Commission of European Communities on the

rules for cooperation concerning the EC financial assistance to Montenegro in the implementation

of the IPA, with the objective of precisely defining the functions and responsibilities of persons and

bodies, as well as the holders of tasks of the process for the management of the EU assistance


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have been precisely defined for the first four IPA components, in accordance with the requirements

of the European Commission. DIS roadmaps have been adopted together with action plans for the

conferral of management of IPA funds.

For the component I and II a `gap assessment' mission was conducted at the end of 2009, and in

2010 and 2011 gap plugging activities have taken place. By the end of this year the compliance

assesment is expected to start and the conferal of management of powers is foreseen for mid next

year. In April 2011 the national Roadmaps for IPA III and IV with the relating Actions plans for

implementation of the national Roadmaps were adopted by the Government. Further on, the

Government adopted a decision regarding the Operating Structures (OS) for IPA Component III and

IV and appointed responsible Head of OS. At the moment a gap assesment is taking place.

The key actorsin the overall IPA Management Structure in Montenegro include:

Component I

National IPA Co-o