ICT-enabled Investment Climate Reform: Leveraging Technology to Improve Regulatory Governance in the ECA region A Peer-to-Peer Workshop for Reform Practitioners June 4-6, 2013 Tbilisi, Georgia Bosnia and Herzegovina - Republic of Srpska REPUBLIC OF SRPSKA INSPECTORATE THE CENTRAL INSPECTORATE MODEL – DRIVING INSPECTION REFORM WITH SUPPORT OF THE ICT GORAN VRANIC Head of IT and Project Management Department

INSPECTION REFORM MODELS 1 1 INVESTMENT CLIMATE ADVISORY SERVICES OF THE WORLD BANK GROUP (2010). INSPECTIONS REFORMS: DO MODELS EXIST? Reforming selected inspections Common legal framework for inspections Coordinating body at central level to overview key inspection activities Merging and Consolidating related inspections Centralised supervision/control model

THE INSPECTION SYSTEM REFORM IN REPUBLIKA SRPSKA WORLD BANK BAC PROJECT – (Business Environment Adjustment) –Law on Inspections in Republika Srpska in 2005 – New central inspection authority in Republika Srpska established in according to the centralized inspection organization model – Defined competences of inspections and possibility of conflicts of jurisdictions eliminated – The licensing function separated from the inspection function – Inspections’ synergy enabled by-design

REPUBLIC OF SRPSKA INSPECTION SYSTEM 2 REPUBLIC OF SRPSKA INSPECTORATE (240 inspectors) INSPECTIONS (13) MARKET SURVEILLANCE AGRICULTURAL AND PHYTO FORESTRY VETERINARY WATER TECHNICAL TRAFFIC URBAN-CONSTRUCTION AND ECOLOGY LABOUR SANITARY FIRE SAFETY EDUCATION FOOD SAFETY REGIONAL DEPARTMENTS (6) AND BORDER INSPECTORATE OFFICES REPUBLIC OF SRPSKA MUNICIPAL/CIVIC INSPECTION DEPARTMENTS (330 inspectors) INSPECTION SECTORS (13) INSPECTORS (FOOD SAFETY, MARKET SURVEILLANCE,AGRICULTURAL, VETERINARY, WATER, TRAFFIC, URBAN- CONSTRUCTION AND ECOLOGY, SANITARY I LABOR) 2 VERTICAL AND HORIZONTAL ORGANIZATION AND COORDINATION DEFINED BY THE LAW ON INSPECTIONS IN REPUBLIKA SRPSKA ADOPTED IN 2010

POSITION AND FUNCTIONS

STRATEGIC GOALS OF INSPECTIONS 2. RAISE AWARENESS OF BUSINESSES on need to respect regulations, rules and procedures, technical regulations, standards DEVELOP CULTURE OF DIALOGUE between social partners 1. INCREASE DISCIPLINE in application of regulations

OBJECTIVES AND TASKS BUSINESSES LEVEL – apply self assessment to increase level of knowledge and awareness on need of regulation implementation INSPECTOR LEVEL – systematic application of inspection experience, organization of work and implementation of a risk- based inspection principles to achieve efficiency and quality of inspection surveillance INSPECTION LEVEL – optimal inspection resources management using risk-based planning and real time tracking of inspections INSPECTION SYSTEM LEVEL – efficient coordination of inspections applying synergetic effects of the inspection system by profiling and authorizing inspectors for more competences and by introducing joint inspections planning, and providing continuous inspectors training and capacity building STATE LEVEL – application of feedback in terms of improving regulations and reducing administrative barriers in connection with the inspection activities using the inspection knowledge base

FORMING THE INSPECTORATE Regulatory reform 3. Development of organizational and HR capacities 4. Redesign of procedures 5. Implementation of the Inspection information system - IMS 1. Strategy, mission, vision, functions

INSPECTION INFORMATION MANAGEMENT SYSTEM (IMS) Expert information management system Realized with the support of three integrated international projects – USAIDs and WORLD BANK within 3-year period ( ), the IMS in use from beginning of 2010 New inspection system model and software application – risk assessment, planning, cases and document management, statistics Full inspectors mobility by utilizing noteboks and portable printers WAN computer network and Computer hardware – 6 Inspectorate regional departments and Inspectorate headquarters, Inspectorate border crossing and customs branch offices, Municipal/Civic Inspection Departments – 11 servers, 256 notebook computers and mobile printers, desktop computers and other peripherals ECDL (European Computer Driving License training for 300 employees) Automated Complaints System - CTI – Computer-Telephony Integration System – integrated with the Inspectorate web site and the IMS The Inspection Checks Registry web site

IMS – 10 STEPS IMPLEMENTATION Driving regulatory reform “Regulatory Guillotine” Inspection checklists development teams with a total of 40 inspectors worked on inventory of inspection related measures and development of procedures 3 3 Inspection processes redesign ICT capacity building ICT infrastructure establishment Proof of Concept implementation basic ICT infrastructure implemented to support basic ICT services and inspection reporting software as a proof of concept 6 6 ECDL computer literacy training Application software implementation Application software development Application software deployment final design of the software prepared and rolled out with support of 17 inspector trainers. Internet site and inspection checklists published. 9 9 Proof of sustainability 10 Transparency improvements

REGULATORY REFORM The “Regulatory Guillotine” project has been conducted by the Inspectorate in 2006 for all regulations requirements – legal basis for inspections – Suggestions given for 125 laws and over 1000 bylaws („eliminated“, „simplified“, „harmonized“) – Substantive regulation is improved and the level of knowledge about inspection system is increased – Inspectors started to think in a structural way and they become aware of the mission of inspection surveillance and they supported the new inspection system The inspection checklists for all inspections have been defined in period – Over 300 defined checklists enabled significant level of standardization and transparency of inspection surveillance From 2010 all inspection checklist are available to the public through the internet presentation of the Register of Inspection Checks

PROCEDURES REDESIGN - STRUCTURAL ENTITIES FRAMEWORK OF SUBSTANTIVE REGULATIONS KNOWLEDGE DATABASE ORGANIZATIONAL AND PROCESS FRAMEWORK INSPECTION SYSTEM INSPECTIONS AND INSPECTORS SURVEILLANCE AREAS INSPECTION CHECKLISTS INSPECTION CHECKS IRREGULARITIES SURVEILLANCE OBJECTS TYPES INSPECTION MEASURES

APPLICATION SOFTWARE MODULE M1. FUNCTIONS AND ORGANIZATION Inspection surveillance areas Organizational structure and competences Organization of record keeping and DMS procedures MODULE M9. INSPECTION CHECKLISTS Records on inspection checks and measures Grouping according to checklists Connection with surveillance areas MODULE M6. CMS Inspection preparation Management of cases Workflow management Document management MODULE M6A. KNOWLEDGE DATABASE Results of inspection checks State of controlled entities in terms of compliance and risks MODULE 7. INSPECTION STATISTIC Reports on plans execution Reports on inspections and taken measures Reports on inspection checks and indicators MODULE M2. INSPECTORS Inspectors and their competences Administrative staff MODULE M5. REGULATIONS Regulations structures Records on amendments MODULE M10. RISK ASSESSMENT Risk assessment algorithm Analysis on the level of inspection checks results Aggregation up to the level of areas and objects MODULE M3. PLANNING Inspection resource management – inspector- time Annual and operational plans Planning according to areas and objects MODULE M4. REGISTER OF BUSINESSES AND OBJECTS Records on businesses and objects of inspection Tracking history of inspected objects Results of inspections MODULE M8. OFFENCES MODULE MODULE M11. OFFICE RECORD MANAGEMENT MODULE M12. INTERFACES FOR DATA EXCHANGE

INSPECTION CHECKS RESULTS

FROM THE KNOWLEDGE DATABASE … KNOWLEDGE DATABASE RESULTS OF INSPECTION CHECKS NUMERIC INDICATORS DETECTED IRREGULARITIES IMPOSED INSPECTION MEASURES STATISTICS REPORTS REPORTS ON VIOLATION OF REGULATION PREPARATION FOR INSPECTION INSPECTION SURVEILLANCE PLANS

: THE FIRST THREE YEARS All inspectors in the Republic of Srpska Inspectorate use the IMS in the new way of work of inspections About 70,000 inspection cases and about 150,000 inspection documents created The annual inspection reports for 2010 and 2011 for the Government are created on a basis of statistics generated using the IMS Priorities for the annual inspection plans for 2011 and 2012 are determined using risk assessment and inspection history Efficiency is better in 2011 than what it was in 2010 – about 5% more inspection cases

BUSINESSES’ PERSPECTIVE Inspection procedures were unknown and requirements unclear All inspection checklists and regulations are available over the Internet Time spent on inspections were measured in days during a year Average duration of on-site inspections is around 6 hours during a year Connection with the Inspectorates was weak and based on written complaints Complaints could be reported through the online complaints system Inspection documents were unreadable, unstandardized and unclear All inspection documents are prepared in an electronic way by using standardized templates Inspectors were issuing penalties each time when they found significant irregularities Based on available inspection history, “inspection measures pyramid” was applied in choosing right measures BEFORETODAY

EFFECTS – LEVEL OF IRREGULARITY

Q&A