DIS Project for Component I

Overall Objective

The overall objective of the project is to adequately prepare the Albanian Authorities for absorbing EU financial assistance, putting into place efficient structures and strengthening the
capacities of key institutions for technical management of decentralized programmes in order to ensure sound management of DIS

Project Purpose

The purpose of the project is to:

Assist the Albanian institutions in preparing for EU's DIS for the IPA instrument (Component I - Transition Assistance and Institution Building).
Develop administrative capacities within the Albanian administration to effectively coordinate, manage and implement EU assistance, specifically in order to move to DIS in the future.
Support the establishment of sound financial management and internal control systems for implementation of EU funds.
Support the Albanian Authorities in their preparations towards EU's Decentralised Implementation System (DIS) Management and requirements for DIS Application and DIS Compliance Assessment Audit.

Results

The expected results are as follows:

The NAO and the CAO have reasonable assurance for making the accreditation decisions as regulated by the Articles 11-14 of Commission Regulation (EC) No 718/2007 of 12 June 2007 implementing Council Regulation (EC) No1085/2006 establishing an instrument for pre-accession assistance (IPA) and Article 56(2) of Regulation (EC, Euratom) No 1605/2002.
Re-organisation of the target institutions (review of organisational structure, roles and responsibilities, job descriptions, internal rules, workload analysis, and risk analysis) have been carried out;
Roles, tasks, responsibilities and procedures between different management lines are developed and elaborated in written for all the key functions;
The structures implementing the programmes under component f of IPA (the NIPAC office, the National Fund, the CFCU, the SPO offices in the line-ministries, the Audit Authority etc) have all the relevant procedures' manuals and other material tools for successful implementation of the IPA programmes. These procedures meet the minimum requirements established within the abovementioned Commission Regulation;
Principles, instructions and manuals of procedures for the NF and the CFCU in the MoF have been developed;
Relevant legislative and institutional framework amendments have been prepared.
The staff of the administration implementing the IPA component I programmes (the National Fund, the CFCU, the NIPAC office, SPO offices in the line ministries, the Audit Authority) is skilled and trained for carrying out the upcoming activities and following the procedures related to the management of the IPA programmes.
Comprehensive practical knowledge of the EU fund management system, procurement- and irregularity procedures in similar institutions in other countries have been passed to relevant officials;
Sound financial management and internal control systems have been established in the Albanian administration, as well as the relevant structure and capacities are in place to effectively coordinate, manage and implement EU assistance;
All the issues, gaps and shortcomings that have been raised by an independent auditor's referring the Stage 3 of D1S (the compliance assessment audit) have been resolved;

The ToR also states that within the scope and duration of the project, the Consultant should identify the gaps and help to meet all minimum requirement set for the DIS. All the requested tasks should be carried out in close co-operation and communication with the heads and assigned persons in the relevant bodies for the DIS. It also states that there will be an additional contract for an independent assessment of the management and control systems (compliance assessment audit) that also contributes to providing the NAO and the CAO with the relevant bases for making the accreditation decisions. Only if the compliance assessment audit is delivered during the contract implementation, can the Consultant help to resolve the remaining gaps and findings.

Project Activities

COMPONENT 1: SUPPORT TO SETTING UP OF RELEVANT BODIES IN REGARD TO DIS IPA COMPONENT I

Activity 1.1.2 Elaborate detailed divisions of tasks between procurement and contracting, payment and accounting, monitoring and reporting in the CFCU; define internal rules, workload analysis and risk analysis
Activity 1.1.3 Define an adequate scheme of organisation of the NF in the Ministry of Finance, elaborate detailed divisions of tasks within the NF; the defined structure should be simple, with clear distinction of functions, clearly introduced responsibilities and management structure, effective control mechanisms supported by checklists and several controls; simple and effective accounting system for the evidence of funds
Activity 1.1.4 to assist the NF and the CFCU in meeting the gaps regarding internal audit and control system to eradicate recurring errors (following the Compliance Assessment)
Activity 1.1.5 Define an adequate scheme of organisation of the new unit (AA-Audit Authority) within general Internal Audit Directorate dealing with auditing of EU funds under DIS
Activity 1.1.6 Review and elaborate job descriptions for key positions within the NF and CFCU
Activity 1.1.7 Elaborate detailed division of tasks between the PAO, NAO, director of NF, director of CFCU and SPO in Line Ministries, draft procedures for all key functions
Activity 1.1.8 Define the structure within the MEI in respect to DIS and develop job descriptions for key positions, define line of communication with the MoF (CFCU and NF)
Activity 1.2.1 develop written procedures and manual of operation for the NF (internal operation) and lines of communication with the CFCU and EU Commission and other relevant bodies
Activity 1.2.2 Develop or adapt procedures for all key functions (principles, instructions, audit trails, templates of internal audit charters, job descriptions); develop operational implementation and procedural manuals and standards of checklists for the CFCU related to procurement and contract management, payments, accounting, requests for funds to the NF, procedures for the prevention, detection and treatment of irregularities, monitoring, filing and archiving procedures
Activity 1.2.3 review the procedural manual for the functioning of the European Integration Units (EIUs) within line ministries and adopt any changes regards the SPO (the bulk of the new work is most likely in the areas of programme implementation). develop a manual on programming and monitoring for the MEI and SPOs in Line Ministries, develop a template for monitoring report (semi annual reports) to be prepared by the MEI for the purposes of joint monitoring committee (JMC) and Sectorial Monitoring Sub-Committee (SMSC) and IPA monitoring committee meetings
Activity 1.2.4 The manuals for each of the SPOs should include reporting relationships with the CFCU as well as for the agreements between the IAs and the final beneficiaries
Activity 1.3.1 Consultants should review existing status of legal framework in Albania in regards to the EUâ€™s DIS and support to development of any relevant legal acts that could include development of implementing agreement between the NAO and PAO for implementation of IPA projects through the CFCU, Operational Agreement between the PAO and the SPO
Activity 1.3.2 Provide assistance in drafting legislation on the adoption of rules of procedure for coordinating the preparation and implementation of the IPA programme
Activity 1.3.3 Any amendment of internal control and auditing acts; instructions for general department for internal audit in regards to their amended role for the EUs DIS; instructions on the procedure for payment of value added tax, withholding tax and any other duties given the country national relevant legislation and the framework agreement between the European Communities and the republic of Albania under IPA
Activity 1.4.1 Support to the establishment and improvement of the internal procedures, working modalities and functioning of the targeted bodies (NF, CFCU, MEI and SPO) in accordance and compliance with the structural organisation defined under activity 1; the procedures and manuals prepared under activity 2; the legislation prepared under activity 3
Activity 1.5.1 (i) demonstrate that the relevant structures and capacities set up are able to effectively coordinate, manage and implement EU assistance funds and (ii) testing of the structure developed to verify that sound financial management and internal control systems have been established within the Albanian administration

COMPONENT 2 â€“ DELIVERY OF TRAINING NEEDS ANALYSIS AND ELABORATION OF TRAINING PROGRAMME FOR ALL PROJECT TARGET INSTITUTIONS

Activity 2.1 Carry out an assessment of existing capacities in all relevant target institutions for the DIS, carry out a general training needs analysis and the preparation of a detailed training plan
Activity 2.2 Training and workshops on procedural manuals and checklists developed for the NF, the CFCU, the Audit Authority, the MEI and the SPOs in Line Ministries
Activity 2.3 Organise a study visit abroad and / or internships

KEY CONTACTS

NAO:

Deputy Minister of Finance
Mr. Nezir Haldeda
Bul. Deshmoret e Kombit 4
Tirana, Albania
nhaldeda@minfin.gov.al

PAO & GENERAL DIRECTOR OF CFCU:
Ms Anila Tanku
Bul. Deshmoret e Kombit 4
Tirana, Albania
atanku@minfin.gov.al

PROGRAMME MANAGER EC DELEGATION

Ms Malgorzata Skocinska
Programme Manager
Public Finance
Customs & Taxation
Delegation of the European Commission
ABA Business Center
Rr. Papa Gjon Pali II, 17th floor
Tirana, Albania
Malgorzata.SKOCINSKA@ec.europa.eu

TEAM LEADER

Mr. George Dimos
Bul. Deshmoret e Kombit 4
Tirana, Albania
gpdimos@yahoo.com