1. SENIOR PROGRAMME OFFICERS 3 rd PERIODICAL ROUND TABLE MEETING JUNE- 2010

2. CFCU-3rd SPOs Round Table Meeting-June 2010 2 CONTENT  Regulatory framework  Introduction of the “Programme Management Guidelines” (particularly PIM, Turkish version, SPO webpage etc.)  Better understanding of the “Sensitive Post” concept in DIS institutions  Information on the Irregularity and Irregularity Reports  Workflow on how to follow the procedure for the preparation of Progress & Monitoring Reports

3. CFCU-3rd SPOs Round Table Meeting-June 2010 3 WHAT HAVE BEEN DONE CONCERNING TO SPO SUPERVISION UNTIL NOW? (1)  1 st Round Table Meeting held on 28 th and 30 th April 2009  “The Self Assessment Sheet Briefing” held on 21 st May 2009.  “The SPOs Self Assessment Analysis Report” for 2007 NP was prepared in June 2009  This report was approved by the PAO and published at the CFCU website as a summary, on 10 th July 2009  Accordingly, the NAO and NIPAC were informed on the report by the PAO.

4. CFCU-3rd SPOs Round Table Meeting-June 2010 4 WHAT HAVE BEEN DONE CONCERNING TO SPO SUPERVISION UNTIL NOW? (2)  At the same time, the relevant SPOs were informed by the PAO on the results/scores of assessment, they obtained, via official letter dated 11 th August 2009.  “The spot check visits” to the SPO offices were realized between June and December 2009 by the CFCU.  Among the 33 offices, 26 offices have been visited personally by the CFCU  “Aide Memoire” was prepared by the CFCU.  Revised/updated versions of the Self Assessment Sheets and Workload Analysis were received from the 2007 SPOs on May 2010.

5. CFCU-3rd SPOs Round Table Meeting-June 2010 5 WHY WE ARE DOING THESE? WHAT IS THE LEGISLATIVE BACKGROUND? A. The requirements [selected indicative] of the IPA Regulation – 1085/2006 and its Implementing Regulation – 718/2007 for management and control B. IPA IR Article 11.3, Operational Agreement between PAO and SPOs. Where specific persons have been given responsibility for an activity in relation to the management, implementation and control of programmes, the beneficiary country shall enable such persons to exercise the duties associated with that responsibility, including in cases where there is no hierarchical link between them and the bodies participating in that activity.

6. CFCU-3rd SPOs Round Table Meeting-June 2010 6 WHY WE ARE DOING THESE? WHAT IS THE LEGISLATIVE BACKGROUND? C. Template for Self-Assessment Sheets D. PAO Analytical Report of SPO Self Assessment and Follow-Up on-the-spot Assessment by PAO services under Article 11.3. and as input to Article 27 Statement of Assurance by NAO.  In accordance with Article 25(5), the national authorising officer shall make an annual management declaration, which shall take the form of a statement of assurance to be presented to the Commission by 28 February each year. He shall forward a copy of the statement of assurance to the competent accrediting officer.  The statement of assurance shall be based on the national authorising officer's actual supervision of the management and control systems throughout the financial year.

7. CFCU-3rd SPOs Round Table Meeting-June 2010 7 WHY WE ARE DOING THESE? WHAT IS THE LEGISLATIVE BACKGROUND? E. Senior Programme Officer (SPO) – Clarity of function Pursuant to article 75(3) of the IPA IR, PAO shall designate officials within the national administration as SPOs. Under the overall responsibility of the PAO concerned, SPOs shall carry out the following tasks:  be responsible for the technical aspect of the operations within line ministries,  assist the PAO in the good and timely preparation and implementation of operations at technical level,  be in charge of the coordination within each priority axis set down in the beneficiary country’s project proposal.

8. CFCU-3rd SPOs Round Table Meeting-June 2010 8 PROGRAMME MANAGEMENT GUIDELINES  SPO Webpage  Unofficial Turkish translations of PIM&POG  PIM - Programme Implementation Manual  POG - Programme Operational Guide

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11. CFCU-3rd SPOs Round Table Meeting-June 2010 11 Programme Management Guidelines Part 1 - Programme Implementation Manual (PIM) “Program Uygulama El Kitabı” Part 2 - Project Operational Guide (POG) “Program Yürütme Rehberi”  PIM & POG were translated into Turkish.  Unofficial Turkish translations have been sent to the 2007 and 2008 SPOs on 19.04.2010.

12. CFCU-3rd SPOs Round Table Meeting-June 2010 12 Programme Implementation Manual (PIM) – Key Issues (1)  Strategic level overview and key skills. WHO and WHAT  To reflect the current Instrument for Pre-Accession Assistance (IPA) framework  To describe clearly and accessibly the complete DIS structure and the role/contribution of all stakeholders  To incorporate the Operational Agreement into the PMG  To stress the importance of avoiding Last minute Contracting

13. CFCU-3rd SPOs Round Table Meeting-June 2010 13 Programme Implementation Manual (PIM) - Key Issues (2) Accession Partnership (AP) 9 th Development Plan Negotiation Framework Annual Enlargement Strategy Regular Report and Negotiations Programming Phase -Commission Services - NIPAC - Line Ministries and Agencies Working Document (Programme Document 1) Quarter 4 in Year N-1 Commission Decision Marking the budgetary commitment Quarter 3 in Year N Financing Agreement Country’s agreement with the Commission Qr. 3-4 in Year N Financing Agreement National Fund delegation agreement with Implementing Agency Quarter 1 in Year N+1 Implementation – Tenders, Contracts and Management Derived directly from Project fiches Years N+1 and N+2 Monitoring and Assessment Reports On clusters of Financing Agreement in years N+2 and N+3 Expiry and closing Audit of Financing Agreement After N+3 generally Ex-post Evaluation of Financing Agreement N+3 and beyond Implementation Phase -Commission Services -CFCU -Line Ministries and Agencies

14. CFCU-3rd SPOs Round Table Meeting-June 2010 14 Programme Implementation Manual (PIM) - Key Issues (3) EvaluationIdentification Implementation Financing Formulation Programming

15. CFCU-3rd SPOs Round Table Meeting-June 2010 15 Programme Implementation Manual (PIM) –Key Issues (4) Programming The purpose of the programming phase is to identify and agree the main objectives and priorities for financial cooperation. Identification In this phase, the line ministries and agencies are required to formulate project ideas through Project Identification Sheets. Formulation In this phase, the line ministries and agencies are required to formulate PFs related to the approved project proposals. Financing This phase ends with the signature of the FA.

16. CFCU-3rd SPOs Round Table Meeting-June 2010 16 Programme Implementation Manual (PIM) – Key Issues (5) Implementation  Preparation of project documents which describe define inputs and describe actions to be financed: o ToR for technical assistance (TA) o Technical Specification (TS) for supply of goods o Guidelines for applicants for grant scheme (GS) o Contracts for twinning programmes o Detailed design for works  Tendering and contracting to select the service provider applying open and fair competition methods  Project implementation and contract administration which is the phase where project activities are implemented and disbursements accordingly executed  Monitoring to assess implementation performances and achievements in order to take corrective actions

17. CFCU-3rd SPOs Round Table Meeting-June 2010 17 Programme Implementation Manual (PIM) – Key Issues (6) Evaluation  The aim of evaluation is to assess the impact of the project, if the objectives have been achieved, and to learn lessons by identifying shortcomings and mistakes that occurred during the implementation, in order to improve the execution of future projects.

18. CFCU-3rd SPOs Round Table Meeting-June 2010 18 Programme Implementation Manual (PIM) - Key Issues (7) Decentralised Implementation System  The purpose of the DIS is to provide the appropriate legal and administrative framework for the transfer of responsibilities for the implementation of the EU funded programmes from the EC to the partner countries.

19. CFCU-3rd SPOs Round Table Meeting-June 2010 19 Programme Implementation Manual (PIM) - Key Issues (8) DIS Actors/Institutions  Competent Acrediting Officer (CAO)  National IPA Coordinator (NIPAC)  Financial Co-operation Committee (FCC)  National Fund (NF)  National Authorising Officer (NAO)  Central Finance and Contracts Unit (CFCU)  Programme Authorising Officer (PAO)  Senior Programme Officers (SPO)  Transition Assistance and Institution Building Committee (TAIB Committee)

20. CFCU-3rd SPOs Round Table Meeting-June 2010 20 Programme Implementation Manual (PIM) – Key Issues (9) Human Resources Requirements Ethics Policy The SPO shall be responsible for ensuring that an adequate organisation, with sound internal procedures, is established within his/her line Ministry or Agency staffed by an appropriate number of qualified personnel to enable him/her to carry out the implementation of EU- funded projects in a timely, effective and efficient manner.

21. CFCU-3rd SPOs Round Table Meeting-June 2010 21 Conflict of Interest The SPO and SPO Team should be careful about conflict of interest As CONFLICT OF INTEREST;  During preparation of TS/Market Survey,  Evaluation Committee members.

22. CFCU-3rd SPOs Round Table Meeting-June 2010 22 ETHICS PIM Section 9.3 Ethics Policy The SPO and SPO Team should be careful about ethic clauses As ETHICS;  Appointment policy towards potential tenderers in the market  Same ethic rules applicable with the CFCU

23. CFCU-3rd SPOs Round Table Meeting-June 2010 23 Project Operational Guide (POG) – Key Issues POG supports the PIM. It is comprised of a detailed set of guidelines on how to carry out all of the activities; including instructions, checklists, standard formats, etc. Basic Principles  Common Advertising Rules  Common Tendering Rules  Common Technical Evaluation Rules  Common Contract Participation, Evaluation and Award Rules

24. CFCU-3rd SPOs Round Table Meeting-June 2010 24 Project Operational Guide (POG) - Procurement Procedures (1) Basic Procedures  Contract Types  Contract Values  Checklist for a procurement procedure  Timescale for a procurement procedure

25. CFCU-3rd SPOs Round Table Meeting-June 2010 25 Project Operational Guide (POG) - Procurement Procedures (2) Table-1: Which Procedure to Use according to PRAG SERVICES≥ €200,000 International restricted tender procedure 1. € 10,000 FWCs 2. Competitive negotiated procedure ≤ €10,000 Single tender SUPPLIES≥ €150,000 International open tender procedure <€150,000 but ≥60,000 Local open tender procedure <€60,000 but > €10,000 Competitive negotiated procedure ≤ €10,000 Single tender WORKS1.≥€5,000,000 International open tender procedure 2.International restricted tender procedure <€ 5,000,000 but ≥ €300,000 Local open tender procedure < € 300,000 but > € 10,000 Competitive negotiated procedure ≤ €10,000 Single tender

26. CFCU-3rd SPOs Round Table Meeting-June 2010 26 SENSITIVE POSTS (1) At the level of SPO office,  inventory of sensitive post and  the corresponding policy to mitigate the risk involved in the positions identifying as sensitive must be in line with “Sensitive Post Policy Paper”

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28. CFCU-3rd SPOs Round Table Meeting-June 2010 28 SENSITIVE POSTS (2) A sensitive function is; any post within the SPO office whose occupant could cause adverse effect to the integrity and functioning of the institution by virtue of the nature of his/her responsibility.

29. CFCU-3rd SPOs Round Table Meeting-June 2010 29 SENSITIVE POSTS (3)  Sensitive functions forms an important part of internal control system.  Identification of a function as sensitive does not question the integrity of the jobholder.  Concentrate on the functions where the risk of fraud or misuse of funds or highly sensitive information for personal gain is significant.

30. CFCU-3rd SPOs Round Table Meeting-June 2010 30 SENSITIVE POSTS (4)  It aims, o to develop a sound management system and internal control system to establish a list of functions where there is a risk that a failure to perform them correctly for each post could seriously harm the interests of the SPOs’ functions. o protect EU/TR financial interests against fraud and misuse and raises the awareness among the staff when performing their mission.

31. CFCU-3rd SPOs Round Table Meeting-June 2010 31 SENSITIVE POSTS (5) A post can be characterised as being sensitive: a) by the nature of the activity itself. This could be the case for all activities where a high degree of personal judgement is involved when taking decisions, e.g. experts taking decisions in the area of procurement or contracts, with regard to policy-making and negotiation or in areas where there is a relatively high degree of freedom to act and/or where supervision levels might be low; or sometimes the private assumptions on the personal capacity of the experts in the system. b) by the context in which the activity is carried out. This could apply to functions dealing with policy-making where officials might be subject to pressure to disclose sensitive information and where disclosure might harm the interests of the ministry.

32. CFCU-3rd SPOs Round Table Meeting-June 2010 32 MANAGING SENSITIVE POSTS (1) In the Ministry, the responsibility for identifying and managing sensitive functions rests with Senior Programme Officer who is responsible for ensuring that adequate internal control systems are in place.

33. CFCU-3rd SPOs Round Table Meeting-June 2010 33 MANAGING SENSITIVE POSTS (2) Step 1: Define whether a post should be considered sensitive by nature or context taking into account of the risks involved Step 2: Assess the extent to which controls and checks are in place to mitigate the risks identified for the posts considered as sensitive Step 3: Take appropriate measures to strengthen controls Step 5: Decide whether to accept this remaining level of risk or, if necessary, to enhance the control mechanisms already in place. Step 6: Evaluate the remaining risk level again. Step 4: Assess the remaining risk levels Accept the risk Go to Step 3

34. CFCU-3rd SPOs Round Table Meeting-June 2010 34 Criteria for defining SENSITIVE POSTS (1) Factors contributing to the sensitivity of a function:  Decision-making capacity  Capacity to influence decisions  Relations with third parties outside the Ministry (Contractors, Beneficiaries, grantees, CFCU, EU Delegation etc.)  Regular access to confidential information.  High-level of specialised expertise

35. CFCU-3rd SPOs Round Table Meeting-June 2010 35 Criteria for defining SENSITIVE POSTS (2) Fields of activity which may be sensitive:  Financial management  Contract management  Human Resource Management  IT Management  Administration

36. CFCU-3rd SPOs Round Table Meeting-June 2010 36 Criteria for defining SENSITIVE POSTS (3) The SPO shall designate which of its positions are sensitive. In designating sensitive positions, SPO shall include positions whose duties require, provide for, or encompass:  Director General  Assistant to a Director General  Head of Unit  Head of Human and/or Financial Resources Unit  Authorising Officer  IT Expert(s)  Security Officer  Administrative Assistant  Others

37. CFCU-3rd SPOs Round Table Meeting-June 2010 37 SENSITIVE POSTS: MITIGATING CONTROLS Control chain by internal controls such as, Segregation of duties “Four-eyes” control principle Supervisory activities IT control mechanisms Checklists for administrative controls (included in the PMG) Or any control or position that makes it nearly possible to committ fraud.

38. CFCU-3rd SPOs Round Table Meeting-June 2010 38 Irregularity and Fraud The SPO, as the Irregularity Officer: Irregularity Irregularity means any infringement of a provision of Community or Turkish law (including, FAs, Operational Agreements) resulting from an act or omission by an economic operator (employee, natural or legal persons or other bodies recognised by national law), which has, or would have, the effect of prejudicing the general budget of the Communities or the state budget of Turkey by charging an unjustified item of expenditure to the budget. Fraud Fraud means any intentional act or omission relating to:  The use or presentation of false, incorrect or incomplete statements or documents, which has as effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or from the state budget of Turkey,  Non-disclosure of information in violation of a specific obligation, with the same effect,  The misapplication of funds for purposes other than those for which they are originally granted ReactionReportingReactionReporting

39. CFCU-3rd SPOs Round Table Meeting-June 2010 39 Irregularity Reports/Procedures  Definitions  Why do we report?  When do we report?  How do we report?  Other responsibilities

40. CFCU-3rd SPOs Round Table Meeting-June 2010 40 Definitions of Irregularity  PIF Regulation Article 1(2) of Council Regulation 2988/95 on the protection of the European Communities financial interests  IPA Implementing Regulation Article 2 (6) of Commission Regulation 718/2007  IPA Framework Agreement Article 28(4)(a)

41. CFCU-3rd SPOs Round Table Meeting-June 2010 41 Irregularities IPA Implementing Regulation- Article 7(3) (h): “the definitions of irregularity …shall be laid down in the framework agreement.” IPA Framework Agreement- Article 28(4)(a): Irregularity shall mean any infringement of a provision of applicable rules and contracts resulting from an act or an omission by an economic operator which has, or would have, the effect of prejudicing the general budget of the European Union by charging an unjustified item of expenditure to the general budget.

42. CFCU-3rd SPOs Round Table Meeting-June 2010 42 Elements of Irregularity  an economic operator  an act or an omission  infringement of applicable rules and contracts  charging an unjustified item of expenditure to the general budget  actual or possible effect of prejudicing the general budget of the European Union

43. CFCU-3rd SPOs Round Table Meeting-June 2010 43 Irregularities  In practice, Irregularity is something not regular and many events, regardless of its effects on the EU/TR financial interests, may be asked to be reported!...

44. CFCU-3rd SPOs Round Table Meeting-June 2010 44 Source of Irregularities  Disclosure of information that affect the principle of open and fair competition  Hidden a conflict of interest  Collusion with a tenderer  Inappropriate use of equipment/material supplied  Submission of provisional/final acceptance of goods report false or incorrect information in relation quantities and TS

45. CFCU-3rd SPOs Round Table Meeting-June 2010 45 Fraud  IPA Framework Agreement- Article 28(4)(b):  Fraud shall mean any intentional act or omission relating to: o the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on behalf of, the European Communities; o non disclosure of information in violation of a specific obligation with the same effect; o the misapplication of such funds for purposes other than those for which they are originally granted.

46. CFCU-3rd SPOs Round Table Meeting-June 2010 46 Why do we report? IPA Implementing Regulation (718/2007) Article 19, IPA Framework Agreement Article 28: (1) The Beneficiary shall ensure investigation and effective treatment of suspected cases of fraud and irregularities and shall ensure the functioning of a control and reporting mechanism …In the case of suspected fraud or irregularity, the Commission shall be informed without delay. (2) Furthermore, the Beneficiary (country) shall take any appropriate measure to prevent and counter any active or passive corruption practices at any stage of the procurement procedure or grant award procedure or during the implementation of corresponding contracts.

47. CFCU-3rd SPOs Round Table Meeting-June 2010 47 Why do you report? Operational Agreement  Article 6- Responsibilities of the Senior Programme Officers monthly The immediate reporting of any determined/suspicious irregularity to the CFCU and, where non detected, the preparation and submission of a monthly “Zero” Irregularity Report to the CFCU,  Article 16 (2) Reporting SPO shall submit to the CFCU the information, on a monthly basis by the 5 th working day of the following month, on any determined/suspicious irregularities that may have occurred or, if none then, the submission of a “Zero” Irregularity Report  Annex 1- Declaration of the Senior Programme Officer monthly to submit monthly irregularity reports to the CFCU in accordance with the forms forwarded by the CFCU

48. CFCU-3rd SPOs Round Table Meeting-June 2010 48 When do we report? (1) Immediate Reporting: As the Irregularity Officer, SPO should report all the irregularities detected within the SPO office or by the SPO and reported irregularities by the line ministry immediately to the PAO (CFCU) by using the standard form. All the documents certifying that irregularity was committed should be annexed to the irregularity report.

49. CFCU-3rd SPOs Round Table Meeting-June 2010 49 When Do We Report? (2) Monthly Reports  Monthly Reports: The information and documents gathered about the irregularity after immediate report will continue to be reported by SPO to CFCU and NAO (NF) via monthly reports until the irregularity is resolved by using the standard form together with the Progress Report.  Zero Irregularity Report: If there is not a specific irregularity reported in a quarter, not only from the SPOs but also from own activities and LMs activities regarding the projects in the FAs, the Zero Irregularity Report, prepared by SPO should be submitted to the PAO by the tenth day of the month following the end of each quarter by using the standard form.

50. CFCU-3rd SPOs Round Table Meeting-June 2010 50 How do we report? (1)  Programme Management Guidelines- Programme Implementation Manual (PIM) 8.6.Reporting Irregularities  Operational Agreement- Annex 3- Template Irregularity Reports

51. CFCU-3rd SPOs Round Table Meeting-June 2010 51 How do we report? (2) SPOCFCU OLAF NAO/NF EUD AFCOS FLOW

52. CFCU-3rd SPOs Round Table Meeting-June 2010 52 How do we report? (3) TEMPLATE IRREGULARITY REPORT* *Extracted from the Operational Agreements- Annex 3

53. CFCU-3rd SPOs Round Table Meeting-June 2010 53 Other Responsibilities  PIM 8.4.1 The SPO, as the Irregularity Officer at the SPO Office level, will inform staff and final beneficiaries about: o Irregularities classification o Preventive actions o Reaction to irregularities and to omissions  PIM 8.6.3 The Irregularity Officer should ensure that the irregularities reported by the staff is registered to irregularity register and is submitted to the PAO together with the measures taken by SPO. 53

54. CFCU-3rd SPOs Round Table Meeting-June 2010 54 PROGRESS & MONITORING REPORTS (PMRs)  Decision of Joint Monitoring Committee Meeting (Jan. 2009)  Reports submitted quarterly basis  Q1-2010: January, February, March 2010  Q2-2010: April, May, June 2010  ….  Template of monthly “Progress Reports” submitted to the CFCU and the bi-annual “Monitoring Reports” submitted to the EUSG by the Beneficiary Institutions were merged  New Progress and Monitoring Report formed

55. CFCU-3rd SPOs Round Table Meeting-June 2010 55 Which Projects?  Disbursement deadline (DD) of the programme did not expire  The projects under;  2005 NP (DD: 30.11.2010 with exceptions)  2006 NP (DD: 30.11.2010 with exceptions)  IPA (DD: n+2+2+1 with exceptions)

56. CFCU-3rd SPOs Round Table Meeting-June 2010 56 New PMRs via Electronic Media (1)  No more hardcopies/signatures  Preparation / circulation via electronic media  The developed system will send e-mails to parties in accordance with the workflow

57. CFCU-3rd SPOs Round Table Meeting-June 2010 57 New PMRs via Electronic Media (2)  Basic Project data and other information on the PMRs automatically filled  Reference number /Title of project  Budget / contracted / disbursed amounts  Expiry dates, beneficiary institution/SPO details  Beneficiaries will only fill the essay part of the report  Indicators  Activities  Current Problems & Risks  Anticipated Problems & Risks  Planned Activities  The PMRs for the 2 nd quarter of 2010 will be submitted electronically by the Beneficiaries which the electronic media will be operational in July.

58. CFCU-3rd SPOs Round Table Meeting-June 2010 58 Workflow INSTITUTIONSACTIONS The Beneficiary Institutions Prepare / Revise / Approve EUSGApprove / Reject / comments CFCUApprove / Reject / comments National FundPreview / Comment via e-mail EU DelegationPreview / Comment via e-mail

59. CFCU-3rd SPOs Round Table Meeting-June 2010 59 Role of SPO  Main responsibility to prepare/revise PMRs  Approve the report in the system not later than the 5 th working day of the following month of each quarter period (i.e. the reports for 1st Quarter 2010 - January-February-March 2010- shall be filled till )  “Irregularity Report” and/or “Zero Irregularity Report” should be prepared and signed hard copies submitted to the CFCU

60. CFCU-3rd SPOs Round Table Meeting-June 2010 60 How to use new electronic system?  User Name and Password given to  Each SPO & one contact person  EUSG, NF, EU Delegation  Reports status can be seen at any time by each party  At the Beneficiary/ at the EUSG/ at the CFCU/ completed  Only the party who is in the queue to revise/comment the report will have the authority to make revisions to the report

61. CFCU-3rd SPOs Round Table Meeting-June 2010 61 Project under the 2005 NP (General - III)

62. CFCU-3rd SPOs Round Table Meeting-June 2010 62 SPO Screen (1) To get into the project details, click on the reference number (as in the left column) To see the history of each project (rejections, comments, approvals) click the lens icon at right.

63. CFCU-3rd SPOs Round Table Meeting-June 2010 63 SPO Screen (2)

64. CFCU-3rd SPOs Round Table Meeting-June 2010 64 SPO Screen (3)

65. CFCU-3rd SPOs Round Table Meeting-June 2010 65 PMR Cycle History

66. CFCU-3rd SPOs Round Table Meeting-June 2010 66 Next Step?  Letters will be sent for asking the contact details of the new users  Usernames and passwords will be given  Training will be organised in June  Then the system will be functional

67. CFCU-3rd SPOs Round Table Meeting-June 2010 67 THANK YOU FOR YOUR ATTENTION