introducing sigma's principles of public administration, belgrade, 14 december 2016

© OECD

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Workshop for Civil Society in Serbia on the Principles of

Public Administration

Erika Bozzay, Brian Finn, Klas Klaas, Primoz VeharSIGMA

Belgrade, 14-15 December 2016

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What is SIGMA?

• Support for Improvement in Governance and Management - a joint initiative of the EU and OECD

• Experts from EU public administrations• Working with countries to strengthen public

governance systems and public administration capacities for over 20 years to support socio-economic development through public administration reform (PAR)

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Principles for two groups of countries

• Principles designed for the EU Enlargement countries

• Principles tailored for the European Neighbourhood Partners

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Cross-sectoral framework

The Principles apply to everything that government does. They:

• Apply to all sectors and policies (health, education, security, finance…)

• Describe what is needed for effective implementation of policies

• Provide the building blocks for good public administration from policies and institutions to government outputs

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Use of the Principles so far in the EU Enlargement countries

Evaluation of current state and progress over time

• Baseline measurement and assessments for Albania, BiH, Kosovo*, Macedonia, Montenegro, Serbia and Turkey

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence

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Design and implementation of reforms• Guidance for public administration reform (PAR)

strategies in Albania, Kosovo*, Montenegro, Serbia

• Input to public financial management (PFM) reform strategies in Kosovo*, Macedonia, Montenegro, Serbia

• Guidelines for strengthening legal frameworks, e.g. civil service laws

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence

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Dialogue with EU and other partners, e.g.• Input to PAR Special Group meetings• Formulation of sector budget support

indicators

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Six core areas of a comprehensive framework

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Policy development

and co ordination‑

Public service and human

resource management Accountability

Service delivery

Public financial

management

Strategic framework of public administration reform

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The Six Core Areas are about..

• An administration focused on constantly improving its own functioning

• Helping governments to make good decisions• People with the skills and knowledge to get

things done• An administration that allows citizens to get

things done, for their benefit• Good, accessible public services for citizens• Public administration using money wisely

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Accountability

An administration that allows citizens to get things done, for their benefit

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Service delivery

Good, accessible public services for citizens

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Structure of the Principles

• Six core areas as defined by the EC• Key requirements• Principles• Subprinciples• Methodological Annex:

• Quantitative indicators• Qualitative indicators• Information sources

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Purpose of the Methodological Annex to the Principles

• Without knowing the starting point it is hard to decide what needs to be changed

• Without analysing progress over time it is impossible to say what has been achieved

• Therefore, the purpose is to provide a methodological tool which allows countries to evaluate their current state of affairs and progress over time

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© OECD

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PAR strategic framework&

Policy development and co-ordination

Klas Klaas

14 December 2016, Belgrade

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Policy development

and co‑ordination

Public service and human

resource management

AccountabilityService delivery

Public financial

management


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PAR reform planning

Principle 1: The government has developed and enacted an effective public administration reform agenda which addresses key challenges.

• Relevance• Credibility

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Implementation, monitoring and reporting

Principle 2: Public administration reform is purposefully implemented; reform outcome targets are set and regularly monitored.

• Ability to track progress• Knowing when and how to revise plans

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Affordability of reforms

Principle 3: The financial sustainability of public administration reform is ensured.

• Is it implementable?• What about the long term cost?

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Accountability and co-ordination

Principle 4: Public administration reform has robust and functioning management and co ordination ‑structures at both the political and administrative levels to steer the reform design and implementation process.

• Accountability at all levels• Capacity to co-ordinate content

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Policy development

and co‑ordination

Public service and

HRM

Accounta-bility

Service delivery

Public financial

management


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12 Principles structured under two wider topics

1. Policy planning and co ordination‑• Operational Centre-of-Government• Government-wide policy planning• Government decision-making

2. Policy development• Policy development and drafting of legislation is

evidence based and inclusive• Easy access and understanding of legislation

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What is the Centre-of-Government?

• In the narrow definition it is the General Secretariat or the Prime-Minister’s Office or equivalent.

• For the Principles of Public Administration it includes all the key Government policy co-ordination and quality control functions.

• In Serbia: General Secretariat of the Government Public Policy Secretariat Ministry of Finance Serbia European Integration Office

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Centre-of-Government

Principle 1: Centre of government institutions ‑ ‑fulfil all functions critical to a well organised, ‑consistent and competent policy making system.‑

• 9 core functions expected • but one single machinery of the

Government

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Co-ordination of EU affairs

Principle 2: Clear horizontal procedures for governing the national European integration process are established and enforced under the co ordination of the responsible body.‑

• Ability to steer both the process and content

• Being integrated to normal Government apparatus

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Government-wide planning

Principle 3: Harmonised medium term policy ‑planning is in place, with clear government objectives, and is aligned with the financial circumstances of the government; sector policies meet the government objectives and are consistent with the medium term budget.‑

• Alignment between the agendas of politicians and administration

• Breaking the silos between ministries25

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Planning for EU accession

Principle 4: A harmonised medium term planning ‑system is in place for all processes relevant to European integration and is integrated into domestic policy planning.

• Do we know what are the priorities?• Is EU accession planning feasible and in line

with other national plans?

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Monitoring and analysing progress

Principle 5: Regular monitoring of the government’s performance enables public scrutiny and ensures that the government is able to achieve its objectives.

• Central monitoring and analysis of content of Government policy

• Accountability shift to performance

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Government decision-making

Principle 6: Government decisions are prepared in a transparent manner and based on the administration’s professional judgement; legal conformity of the decisions is ensured.

• Can state institutions fulfil their roles?• Transparency once again – public nature

of Government decisions and communication

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Parliament as an institution

Principle 7: The parliament scrutinises government policy making.

• Parliament’s role in overseeing and deciding on legislation

• Co-operation between the Parliament and the Government

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Ministries are focussed on policies

Principle 8: The organisational structure, procedures and staff allocation of the ministries ensure that developed policies and legislation are implementable and meet government objectives.

• How much ministry staff are actual policy experts?

• Co-ordination and responsibility inside ministries

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European integration is not different from policy making

Principle 9: The European integration procedures and institutional set up form an integral part of ‑the policy development process and ensure ‑systematic and timely transposition of the acquis.

• Fine balance between smooth co-ordination and dedicated EI structures

• Acquis transposition is an integral part of Government’s policy making

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Thinking when preparing new policies

Principle 10: The policy-making and legal-drafting process is evidence based, and impact assessment ‑is consistently used across ministries.

• Is it always clear which problems are addressed with a change in a law?

• What does it cost for the state or for the citizen?

• Gatekeeping function crucial32

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Informing and consulting in advance

Principle 11: Policies and legislation are designed in an inclusive manner that enables the active participation of society and allows for co ordinating perspectives within the ‑government.

• Is inter-ministerial consultation adding value?

• Stakeholder engagement and opportunity to give input both important

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Legislation is well drafted and accessible

Principle 12: Legislation is consistent in structure, style and language; legal drafting requirements are applied consistently across ministries; legislation is made publicly available.

• Are complete packages of legislative amendments prepared together?

• Are consolidated texts easily available?

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Please ask questions!

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© OECD

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SIGMA The Principles of Public Administration

Serbia (Public Service & HRM, Accountability,

Service Delivery)

Primož Vehar14 December 2016, Belgrade

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Public service and HRM

1. The scope of PS is adequate, clearly defined and applied in practice

- Clear legal basis with horizontal and vertical scope!

- All general provisions included and applied in practice?

- Serbia: Fragmented application of CSL still exist (recruitment), lack of practical distinction between political and senior CS posts

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Public service and HRM 2. The policy and legal framework for professional civil service established and applied in practice; consistent and effective HRM practices across the public service- Defined policies and strategies for PS

development, primary and secondary legislation in line with key principles? A central coordination unit in place? HRMIS? HRM services? Oversight?

- Serbia: Implementation challenges as: HRMS lacks the authority, HRMIS not updated and interlinked. Weak role of the Administrative inspection

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Public service and HRM 3. Recruitment of public servants is based on merit and equal treatment in all its phases; the criteria for demotion and termination of public servants are explicit- Recruitment based on merit, equal opportunities and

open competition, clear criteria in legislation, key are selection committees, appeal right

- criteria for demotion and termination in the law, appeal right, practical application

- Serbia: Legislation not enough to safeguard the merit principle, certain parts own recruitment rules, discretion of the Head to select candidates from the closed list, temporary personnel around 10% !

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Public service and HRM 4. Direct or indirect political influence on senior management positions in the PS is prevented. - Key positions in every public service. Criteria clear and

disclosed. Selection based on merit, equal opportunities and open competition.

- Termination procedures clearly provided in the law. Practical application?

- Serbia: Political influence not prevented in practice. High number of recruitment competitions did not resulted in high number of appointments. Many acting seniors officials. Termination for senior officials jeopardised by the legal provision of “serious disturbance” – without formal definition. To be monitored!

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Public service and HRM 5. The remuneration system based on job classification; it is fair and transparent. - Legal framework plus practical application needed.

Key relation between fixed and variable salary. Allowances and benefits established by law and applied in practice.

- Managerial discretion is limited to ensure fairness, transparency and consistency.

- Serbia: Issue with discretionary performance payment up to 20%, banned in 2015. Transparent salary structure based on a job classification system.

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Public service and HRM 6. The professional development of public servants is ensured through regular trainings, fair performance appraisal and mobility and promotion based on objective and transparent criteria and merit. - Professional training is a right and duty in law and in

practice. TNA and training plans conducted, coordinated and supported, resources are allocated

- Performance appraisal established in law and performed in practice regularly. Right to appeal.

- Mobility is encouraged, as well as promotion, based on merit, and transparent and clear criteria.

- Serbia: Good training methodology by HRMS, but insufficient funding. Training not part of the appraisal system. Performance appraisal exists as a paper exercise.

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Public service and HRM 7. Measures for promoting integrity, and preventing corruption and ensuring discipline in the public sector are in place. - Legal framework to prevent corruption is in place and

applied. - Disciplinary procedures regulated in the legislation

and applied. Appeals procedure established. - Serbia: Ethnical codex in place, ACA implements

monitoring, but no force to implement sanctions. Pretty high corruption perception index of Transparency International.

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• The policy and legal framework are defined and in line with most administrative law principles

• Main challenges re implementation the scope of the public service is narrow; The boundaries between senior public servants and political appointees does

not safeguard the principle of merit; the central co-ordination unit is not accountable to the minister responsible for

public administration and has limited authority to ensure the implementation of the legislation in a coherent manner across the public service;

the central Civil Service Registry is not fully operational to support the strategic workforce planning, management and monitoring of HRM practices in the public service.

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Public service and HRM• The salary structure for public servants is transparent, fair (with minor

inconsistencies) and based on a job classification system• The ethical legal framework is largely in place and disciplinary

procedures are adequately regulated, without major problems of implementation

• Main challenges Despite new procedures to end the ongoing use of acting officials as a form of

politicisation, recruitment regulations weaken the commitment to merit-based recruitment and selection of public servants in practice

the salary system, which is based on a job classification structure, is transparent but lacks some fairness;

training strategies and plans exist but training does not reach all public servants;

performance appraisal needs to realise its potential by converting a formal exercise into a real process that is implemented in accordance with good practice standards;

Despite many anti-corruption measures being in place, the perception of corruption is still high in the country

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Accountability1. Overall organisation of the central government is rational, follows adequate policies and regulations and provides for appropriate internal, political, judicial, social and independent accountability. - Clear rules governing the organisation of the executive,

clear rules regarding rationality, scrutiny, managerial accountability.

- Agencies are steered and controlled, and responsible to executive.

- Serbia: Legal framework in place, but proliferation of agencies – problem with coherent HRM. Rationalisation needed. Too much reporting to the parliament besides those reporting to government and ministries.

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Accountability2. The right to access public information is enacted in legislation and applied in practice. - The right for public info is enshrined in the law - Public info defined broadly, exemptions set precisely,

normally without or low charge. No reasons for their request.

- Supervisory authority to control implementation and can impose sanctions.

- Serbia: Legal framework in place, but too broad scope for exemptions. No responses from many institutions remains a challenge. Insufficient capacities of the Commissioner

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Accountability3. Functioning mechanisms are in place to protect the rights of the individuals to good administration and the public interest.

- State institutions are subject of scrutiny by oversight institutions (as Ombudsman, SAI,..), courts, public,.. all based on legislation

- The powers and independence of this institutions are regulated- Parliament exercises scrutiny role over the Government,

Constitution has a clear rule also regarding Ombudsman- Ombudsman is regulated by law, meets international standards

and administration implements its recommendations

- Serbia: Ombudsman has wide remit and authority by law. Majority of implementations are implemented. But, surveys show that awareness about Ombudsman is low and its independency threatened.

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Accountability

4. Fair treatment in administrative disputes is guaranteed by internal administrative appeals and judicial review.

- Administrative appeal regulated in law together with the procedure - Specialised judges which workload is systematically analysed- Costs of court proceeding does not prevent access

- Serbia: One instance administrative court with 4 branches, mostly annulments of the administrative acts not the final judgements. Clearance rate around 92%, backlogs slowly reducing. Lack of training and insufficient legal aid. Only 16% of court cases reversed or annulled by a Supreme Court.

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Accountability5. The public authorities assume liability in cases of wrongdoing and guarantee redress and /or adequate compensation

- Legislation in place for individuals to redress or compensate the wrongdoing of the state

- Regulation of public liability is coherent and accesiblle - Rules regarding time limits and burden of proof do not

jeopardise effective exercise - Serbia: The legal framework is in place in several laws. Adm

Court and Civil Court competency. Costly and long procedure. Limited/no information on the number of cases.

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Accountability

• Organisation of public administration is regulated by law but the proliferation of agencies (many reporting directly to the Government or the Parliament) makes the system difficult to manage

• Legal framework for provision of public information is in place but, in practice, Commissioner unable to monitor implementation

• Administrative courts slowly reducing their backlog but, often, a “ping-pong” process goes on between them and the public administration.

• There is an institution of the Ombudsman, the majority of whose recommendations are implemented, but it encounters problems functioning in practice and challenges to its merit.

• A system of public liability is in place but, in practice, owing to a lack of data, it is impossible to comment on its effectiveness.

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Service Delivery

1. Policy for citizen-oriented state administration is in place and applied

- Strategies and their implementation, simplification - Regulation of public liability is coherent and accessible- Legal framework, applied in practice plus institutional set up - Cost of public services kept under transparent review - Serbia: A policy on improving public services included in

Strategies. Activities on reducing administrative burdens for business and citizens are present, especially in the last period.

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Service Delivery

2. Good administration is a key policy objective underpinning the delivery of public service, enacted in legislation and applied in practice

- Legal framework exists (LGAP), implemented in practice, good administration is among the governmental priorities

- Key principles included in LGAP, included the right of hearing- Reasons for the decisions are stated and rights of appeal guaranteed- Consultations with Civil society when general impact

- Serbia: A new LGAP adopted in 2016. Key principles included. Currently too many specialised procedures. High level of complaints. Silence of the administration one of the issues.

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Service Delivery3. Mechanism for ensuring the quality of public service are in place- Service delivery promotes one or several quality

assurance tools, regular monitoring in place, service modernisation efforts on going, trained officials…

- Standards of service delivery by PA are set out

- Serbia: PAR Action Plan contains activities aiming at improving the quality of public service. Improvements for citizens and business are in place and are currently in progress (examples: passport, ID, new-borns, …)

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Service Delivery

4. The accessibility of public services is ensured

- Equal access to services in whole territory- One stop shops available for wide range of services- Electronic communication possible for many services- Official websites and leaflets provide information on access to services

as well as rights and obligations- Groups of special needs taken into account

- Serbia: Efforts in progress. E-services are increasing, its number as well as number of users. The possibility to conduct transactions via e-service remains limited. Standards for accessibility of disabled persons have been set and monitored.

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Service Delivery

• No coherent policy has been implemented in relation to service quality (which is also reflected by the lack of data for indicators), but some actions have been taken to increase the accessibility of public services.

Activities aimed at reducing administrative burdens are oriented mainly towards businesses, with some success

A high number of citizen complaints about administrative procedures but new Law in motion

User satisfaction of public services not measured though some activities to improve service delivery included in PAR Action Plan

A policy on service delivery, including e-services, exists; the Government is developing e-services, and citizens and companies are using them though there are some legal barriers preventing public administration from offering more services with transactions online. 57

© OECD

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The Principles of Public Administration

Serbia (PFM)

Brian Finn15 December 2016, Belgrade

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PFM Principles in Public Administration

• The PFM Principles are about the financial framework within which public services are delivered Cannot have what cannot be afforded Weighing benefits against the likely costs Ensuring sufficient funds are available for

activity Prioritising activities

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PFM Principles in Public Administration

• The PFM Principles aim to promote: macro-economic and fiscal stability though the

MTBF and other budgetary provisions in the Principles

Budget transparency by requiring publicly available budget information

Stronger links between sector strategies and resource planning

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Partners for PFM Principles

• In the countries Ministries of finance Treasury administrations Public procurement administrations Public procurement review bodies Supreme audit institutions Parliamentary budget and finance committees

• SIGMA also has worked with PEFA to ensure consistency

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Differences with PEFA

• No contradictions but some differences• Compared to PEFA the SIGMA Principles do not cover:

Tax administration• Public revenue estimations and planning are included

Detailed attention to local government finances• Local government finances are included as part of general

government monitoring and transparency• SIGMA PFM Principles place more emphasis on

EU matters (Chapter 32, IPA funded programmes, acquis) Procurement is more detailed

• SIGMA PFM Principles linked to other PAR areas

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Key areas within PFM

Principles (16) Indicators (55)

Budget planning and execution

5 14

Public Internal Financial Control

4 9

Public procurement 5 23

External audit 2 9

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PFM Principle 1

1. The Government publishes a medium-term budgetary framework on a general government basis that is founded on credible forecasts and covers a minimum time horizon of three years; all budget organisations operate within it.• Credible forecasting underpins expenditure framework within which

Budget is formulated to ensure public finances are on sustainable path• For Serbia

there is a medium-term budgetary framework, but with such variations in expenditure forecasts, there is no evidence to suggest that all budget organisations operate within the framework.

An examination of projections in the most recent Fiscal Strategies supports concerns that the current Fiscal Strategy, which sets ambitious targets for fiscal stabilisation, is founded on overly optimistic assumptions.

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PFM Principle 2

2. The Budget is formulated in line with the national legal framework, with comprehensive spending appropriations that are consistent with the medium-term budgetary framework and are observed.• Appropriate formulation of a transparent Budget necessary to ensure

public finances are on a sustainable path• For Serbia

The wide differences between Budget forecasts and actual revenues and expenditures is not based on accurate, realistic projections.

There is no rigorous analysis of the users’ Budget requests, and it contains minimal explanatory detail.

Failure to respect the deadline for submitting the Budget to the Parliament suggests that the Parliament’s role is not strong.

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PFM Principles 1 and 2

• Budget formulated within a multi-annual framework and in accordance with legal provisions

• Main issues: Not based on realistic assumptions, with revenue undershooting target and

expenditures varying from original projections No clearly defined monitoring and enforcement procedures Large deficits, rising debt ratio although corrective action is being taken Parliament role not strong Weak linkage between ministerial strategies and MTBF

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PFM Principle 3

3. The Ministry of Finance, or authorised central treasury authority, centrally controls disbursement of funds from the treasury single account and ensures cash liquidity.• Cash management is central to the successful monitoring and control

of expenditure during the year. Without this, it would be difficult to ensure that cash flow is aligned with the spending allocations and to allow for timely remedial action where necessary.

• For Serbia Cash liquidity is ensured through the Treasury Administration using the treasury

single account. However, cash planning is on a month-to-month basis. Until the announcement of the IMF Stand-By Arrangement, there was no

systematic monitoring of accumulated arrears and, although the MoF publishes details of outstanding payments on its website, an accumulated figure is not published.

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PFM Principle 4

4. There is a clear debt management strategy in place and implemented so that the country’s overall debt target is respected and debt servicing costs are kept under control.The country’s debt ratio has got to be kept on a sustainable path or else investors will lose confidence in the country’s ability to repay loans and sharp remedial action affecting public services will have to be taken• For Serbia

Until recently, the debt target was not respected and although the Government has announced steps to stabilise the debt, it is too early to judge how effective this will be.

There is a debt management strategy, and debt is monitored and reported monthly, but the debt ratio had risen quickly up to 2015.

Debt servicing is now costing the equivalent of 2.9% of GDP and is exposed to exchange-rate movements and interest-rate rises.

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PFM Principle 5

5. Budget transparency and scrutiny are ensured.

Information on public finances should be published on a regular basis so that the Parliament and citizens can see clearly the progress of spending and revenue collection during the course of the budget year

For Serbia The Budget System Law provides for transparency and scrutiny, and at the most

basic level the requirements of the Law are implemented. Profiles against which Budget execution can be analysed are not published,

however. Furthermore, the annual financial statement provides only the most basic details.

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PFM Principles 3, 4 and 5

• Both cash and debt are managed centrally in Serbia, in line with legal provisions and Budget system law provides transparency and scrutiny

• Main issues: Monthly profile data are not published, so transparency and scrutiny an

issue Cash planning on a month-to-month basis (15th of preceding month) Significant variations between projections and actual spending Spending below profile Jan-Oct but way above profile Nov-Dec Unable to provide data of accumulated arrears but at least they are

acknowledged Public Debt Law, Budget System Law do not prevent SOEs from

borrowing Annual financial statement presents most basic information

(transparency)70

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6. The operational framework for financial management and control defines responsibilities and powers, and its application by the budget organisations is consistent with the legislation governing public financial management and public administration in general.

7. Each public organisation implements financial management and control in line with the overall financial management and control policy documents.

• Well established arrangements for the financial management and internal control of public resources are essential to ensure that those resources are utilised to deliver services efficiently, effectively and economically. Those arrangements should facilitate the delegation of authority to different levels of management with appropriate accountability reporting

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• Legal framework exists for functional financial management and control system (FMC), including managerial accountability. But objectives and benefits of a fully operational FMC system are

poorly understood throughout the administration No data available for two of three quantitative Wastefulness of government spending, Serbia ranked 132 out of

144 countries. CHU annual survey suggests poor implementation of FMC

• Needs to be greater awareness at a managerial level of the importance of FMC

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8. The operational framework for internal audit reflects international standards and its application by the budget organisations is consistent with the legislation governing public administration and public financial management in general.

9. Each public organisation implements internal audit in line with the overall internal audit policy documents as appropriate to the organisation.

• Internal audit is the means by which the top manager and management team of an entity receive assurance from an internal source that internal controls are appropriately designed and operate effectively to ensure the organisation achieves its objectives.

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• Legal framework and all key functions for IA are established and annual MoF report shows further progress in the development of internal audit

• MoF provides training in IA• MoF does not compile data about annual IA plans conforming to national

legal requirements• MoF does not provide guidelines for applying the requirements for IA

independence• Only 57% of public institutions have established the IA function • Only 72% of IA staff had national certificates for IA in 2013 (63% in 2012)• Quality of IA reports cannot be assessed owing to insufficient data but in

examples seen IA units are providing useful recommendations to help management improve its control systems

• There is a risk of overlap and duplication in the work of IA and of budget inspection although MoF wants to address this

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15. The independence, mandate and organisation of the Supreme Audit Institution are established and protected by the constitutional and legal framework and are respected in practice.

16. The Supreme Audit Institution applies standards in a neutral and objective manner to ensure high quality audits, which positively impact on the functioning of the public sector.

• A public financial accountability system requires independent and professional scrutiny of the Government’s management of public funds in accordance with international standards. This is the role of the Supreme Audit Institution, which should carry out its mandate autonomously and report its findings annually to the Parliament.

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• The independence, mandate and organisation of the SAI are established and protected by the constitution and legislation

• The SAI cannot audit all institutions within its mandate every year but SAI management mitigates the impact by applying a risk-based approach for the audit planning decisions taken each year

• Of the recommendations in its 2013 reports, only 63% out of 1,044 had been implemented by end the following year

• The time that the SAI takes to initiate “offence procedures” reduces the time available to undertake financial and performance audits.

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Thank you for your attention!

More information can be found at:

www.sigmaweb.org

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The Principles of Public Administration

Serbia (Public Procurement)

Erika Bozzay15 December 2016, Belgrade

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Principles for public procurement (including concessions and PPPs)

• Part of PFM area

• Provide a guide for countries in their reform process: How a well-functioning public procurement system should look like?

• Framework: 3 key requirements for the general characteristics of a

well-functioning public procurement system 5 principles (Principles 10 – 14) grouped under the key

requirements Sub-principles under the principles

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Compatibility with other frameworks

• Legal instruments developed within the framework of the European Union: EU Directives on public procurement European Commission’s communications Court of Justice of the EU case law

• the OECD Recommendation of the Council on Public Procurement (2015)

• WTO/Government Procurement Agreement (GPA)• UNCITRAL model law• Multilateral development bank rules

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Common core principles• Transparency:

Publication of contract opportunities and contract awards Rules clear in advance

• Economy: Competitive procedures – also need for competitive supply market!

• Efficiency: Variety of procedures, proportionate to the situation

• Non-discrimination: Rules on qualification and evaluation criteria, specifications

• Accountability: Review and remedies, internal control, external audit

• Sustainability: Most economically advantageous tender

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EUPublic Procurement:

Key Requirements (3)1. Public procurement is regulated by duly enforced policies and

procedures that reflect the principles of the treaty on the functioning of the EU and the EU acquis, and are supported by suitably competent and adequately resourced institutions. (Principle 10 and 11)

2. In case of alleged breaches of procurement rules, aggrieved parties have access to justice through an independent, transparent, effective and efficient remedies system. (Principle 12)

3. Contracting authorities are adequately staffed and resourced and carry out their work in accordance with applicable regulations and recognised good practice, interacting with an open and competitive supply market. (Principle 13 and 14)

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Public Procurement Principle 1Policy, legal and regulatory framework

Principle 10: • Public procurement regulations (including PPPs and concessions) are

aligned with the acquis, include additional areas not covered by the acquis, are harmonised with corresponding regulations in other fields, and are duly enforced. (+8 sub-principles)

Serbia BM 2015: • The legal framework for public procurement (including defence procurement)

is largely harmonised with the EU acquis. ensures proper conditions for increasing transparency in public

procurement and for tackling corruption. However, the system suffers from very detailed and prescriptive regulations, which place a heavy administrative burden on the contracting authorities.

Links to the civil society:• legislation is prepared in consultation with the whole procurement

community… 83

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Public Procurement Principle 2Institutional framework and administrative capacity

Principle 11:• There is central institutional and administrative capacity to develop,

implement and monitor procurement policy effectively and efficiently. (+10 sub-principles)

Serbia BM 2015: • The institutional framework provides the necessary elements for a

functional system, but the excessive number of functions allocated to central institutions (especially to the PPO) negatively influences performance. In 2014, the PPO had to prioritise its tasks and focussed mainly on the preparation of the missing implementing tools and thus put less effort into its monitoring and oversight functions.

Links to the civil society:• An oversight and monitoring system … is in place, … access to data on

public procurement operations…84

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EUPublic Procurement Principle 3

Remedies system

Principle 12: • The remedies system is aligned with the acquis standards of

independence, probity and transparency and provides for rapid and competent handling of complaints and sanctions. (+7 sub-principles)

Serbia BM 2015: • Proper regulatory framework and institutional set-up for

handling complaints is in place and access to review system not restricted by excessive costs. PRB is facing a constantly growing number of complaints.

Links to the civil society:• …comprehensive publication of judgements…• …data on the functioning of the remedies system is published without

delay… 85

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EUPublic Procurement Principle 4

Procurement operations

Principle 13: • Public procurement operations comply with basic principles of equal

treatment, non-discrimination, proportionality and transparency, while ensuring the most efficient use of public funds and making best use of modern procurement techniques and methods. (+13 sub-principles)

Serbia BM 2015: • Most contracts are awarded through open procedure, framework

agreements widely used, but degree of e-procurement penetration still low as only notices are published on the Internet. In 2014, the share of negotiated procedures without publication decreased significantly.

Links to the civil society:• A risk indicator system signals potential integrity problems in the

procurement process. 86

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Public Procurement Principle 5Market functionality + professionalisation in public procurement

Principle 14: • Contracting authorities and entities have the appropriate capacities

and practical guidelines and tools to ensure professional management of the full procurement cycle. (+ 7 sub-principles)

Serbia BM 2015:• Key materials for helping contracting entities comply with procedural

regulations are available. Both the contracting authority and the bidder tend to lack professional skills, in particular with regard to introducing new working methods, such as greater centralised procurement, framework agreements, dynamic purchasing systems and e-auctions.

Links to the civil society:• … monitoring public procurement…

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EU2015 Baseline measurement report – main

findings (overview)• Legal framework for public procurement largely harmonised with EU

acquis but implementation hindered by excessive duties on the PPO and contracting authorities.

In 2014, PPO had to prioritise tasks and focus mainly on preparation of the missing implementing tools at expense of its monitoring and oversight functions.

• Proper regulatory framework and institutional set-up for handling complaints is in place and access to review system not restricted by excessive costs.

• Most contracts are awarded through open procedure, framework agreements widely used, but degree of e-procurement penetration still low as only notices are published on the Internet.

• Key materials for helping contracting entities to comply with procedural regulations are available but both contracting authorities and the bidders can lack professional skills.

• PPO needs to monitor more re spending exempt from PPL and re training for public procurement officials.

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EUPublic procurement

(including concessions and PPPs)

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Thank you for your attention!

More information can be found at:

www.sigmaweb.org

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introducing sigma's principles of public administration, belgrade, 14 december 2016

Government & Nonprofit