201003 issue 4 - european external action serviceon the 01st of dec 2009 a new treaty for the...
TRANSCRIPT
On the 01st of Dec 2009 a new treaty for the European Union entered into force. – The Lisbon Treaty. This date marks an important step, not only in terms of European history – the EU will now be more democratic, efficient and transparent, but it also introduced changes into our daily work!
Wherever the European Communities were used in the context of external aid, you will now see the European Union. Even we, as the Delegation have changed our name to the Delegation of the European Union. Contracts are now concluded as “The European Union, represented by the European Commission” and so forth. The European Union has taken over the contractual responsibilities of the European Communities.
We therefore urge you to please ensure that you always use the latest templates available, where the changes concerning the Lisbon Treaty have already been incorporated. You will find theme here: http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm and for Programme Estimates here: http://www.cc.cec/dgintranet/europeaid/contracts_finances/guides/program_est/index_en.htm
The European Union renewed itself Inside This Issue
1 The Lisbon Treaty
1 A new Practical Guide
2 Finance & Contract matters
Retention and closure of PE
The choice of I-AO and IA
3 Next Tripartite Workshop
20-21 April 2010
3 Four of you opening…
4 Eight of you closing…
5 List of Members
6 Who is who
6 Best Practice…
7 Upcoming Events
7 Editorial
Nibiniyan• Bulletin News from Contract & Finance Section Of the European Union Delegation to Ghana
VOLUME 1 ISSUE 4 available on www.delgha.ec.europa.eu
April 2010
A new version of the Practical Guide to procedures for Programme Estimates was released in December 2009 introducing minor changes to the current way of working. The new version was mainly necessary to incorporate the new legal bases, which had been updated.
As a summary please note the following changes:
v The ceilings above which payments will be centralized will be fixed in national currency when drawing up the Programme estimate and may not be modified during the implementation of the imprest component of its budget.
v In case the PE is managed by a public entity other than the government, their staff and operating costs can be incorporated into the imprest component of the PE.
v When the amount of the initial allocation (advance/pre-financing) is more than the equivalent of EUR 250,000, interest yielded on bank account(s) is the property of the European Union.
A new practical Guide
PAGE 2 Nibiniyan• Bulletin from C&F April 2010
Still retention to pay when PE is ending?
A new Practical Guide continued… v A bank account can be opened in Euro, as long as the accounting
system allows for easy monitoring.
v The balance of own resources does not need to be transferred back to the EDF account and may remain with the project.
Finance and Contract Matters Retention to pay after the PE has ended
Some of you might have already found yourselves in a situation, where for example retention for work contracts is still to be paid, but the Programme Estimate is ending. Unfortunately there are no common rules on how to deal with such a situation, but one could think of the following solutions:
If there would be a consecutive PE, the most practical solution would be to transfer this activity including the budget to the next one. But supposing you are closing the final PE, then what should you do?
We have various scenarios:
a) request for a retention guarantee, which will allow you to pay the retention
b) in case of public direct/indirect management, calculate the retention outstanding (inducing bank charges) and maintain this balance on the bank account, until the time comes to pay the retention
c) in case of private indirect management discuss with the NAO and the EU Delegation immediately if you can foresee such a case to happen to find a practical solution on an individual basis.
The choice of the Imprest Accounting Officer and the Imprest Administrator
It has been noted, that the choice of the Imprest Accountant often falls on the Accountant of a given department/unit and the Imprest Administrator chosen happens to be the Head or Director of that specific department/unit. This might seem most natural to many of you, but actually this is not what is intended.
The guide to Procedures for Programme Estimates (p.20) states clearly, that these two positions should be able to independently execute their work. In practice these would imply that there is no direct hierarchical connection between the two posts to ensure that internal control mechanisms can be effectively applied. It should be further noted that the position of an I-AO and IA requires a lot of dedication and time, often maturing into a full time occupation. Please choose the respective positions with care.
The National Authorising Officer has a vested interest in the selection of the two roles, because ultimately the final financial obligation of each Programme Estimate lies with the Ministry of Finance and Economic Planning.
Who can versus who should be I-AO and IA?
PAGE 3 Nibiniyan• Bulletin from C&F April 2010
Since our last issue in September 2009, we have signed 4 new Programme Estimate (consecutive to previous ones).
Improvement of the Water Sector performance Framework PE3: starting 1/02/2010 to 30/04/2011 and aimed at supporting the Water Directorate in the development of an investment plan and financing strategy designed to make the consequences of the policy decision on tariffs levels visible. This will assist the sector to agree on realistic tariff levels that will ensure sustainability. (Imprest Administrator: Mr. Minta A. Aboagye with his substitute Mr. Attah Arhin and Imprest Accounting Officer Mr. Joseph Aboagye with his substitute Mr. Ekuful Albert) Development of national and river basin integrated water resources management (IWRM) PE3: starting 23/11/2009 to 14/05/2011 to promote Integrated Water Resource Management with the focus on water resources assessment activities for effective planning and development of a viable and sustainable institutional framework for decentralised IWRM initiatives at river basin level. (Imprest Administrator: Ms. Dorcas Adwoa Paintsil with her substitute Mr. Bob Alfa and Imprest Accounting Officer Mr. Stephen Acheampong Boateng with his substitute Mr. Edward A. Gyasi)
Four of you opening….
We wish you all a successful
implementation…
Many of you will remember the last Tripartite Workshop we held in May last year. Upon popular request a subsequent event is to be organized.
We are pleased to inform you that the NAO together with the EU have decided to convene the next Tripartite Workshop on 20-21 April 2010 at the Fiesta Royal Hotel. We urge you to already book these dates in advance in your calendar and not to miss this great opportunity to engage actively with us and the NAO in enhancing our collaboration and mutual understanding of issues.
The first day will be dedicated to Tenders: which procedure to choose, how to prepare and evaluate the tender and aspects of the succeeding contract.
The second day will focus on Programme Estimates e.g. Accounting Software, expenditure verifications, exemption from taxes (VAT) and how to manage/ change the PE.
We hope you will find these topics interesting and look forward to seeing you there.
Next Tripartite Workshop
PAGE 4 Nibiniyan• Bulletin from C&F April 2010
With concerted efforts we closed the following Programme Estimates. We thank all engaged parties for their collective efforts:
Closed PE 15/09/2009 PE2 Cultural Heritage and Local Economic Development
in Elmina and Old Accra 06/10/2009 26/10/2009
Start-up PE for Water Directorate PE1 Protected Area Development Project
02/11/2009 Start-up PE for Water Resource Commission 02/12/2009 PE4 Ghana Regional Appropriate Technology Institute
(GRATIS) Foundation 02/12/2009 PE5 Ghana Regional Appropriate Technology Institute
(GRATIS) Foundation 08/12/2009 26/01/2010
PE1 ECOWAS Regional Project PE1 Road Maintenance
It is our sincere hope to be able to close all Programme Estimates latest 6 months after the end of each Programme and we urge all of you to join hands in complying with this requirement.
…and eight of you closing
We thank you for your commitment
Support to the National Authorising Officer PE2: starting 15/03/2010 to 14/09/2011 strengthening the institutional capacity of the ACP-EU Unit in the Ministry of Finance and Economic Planning, for the NAO to meet his responsibilities as laid down in the Cotonou Agreement. (Imprest Administrator: Mrs Effie Simpson Ekuban with her substitute Ms. Mary-Anne Addo and Zakaria Yakubu Seini and Imprest Accounting Officer Mr Ransford Asiedu Danquah with his substitute Mr. Edward Alabie Borteye and Mr. James Adomako Addai) Cocoa Sector Support programme PE 2: starting 26/01/2010 to 30/11/2010. aiming at increasing the adoption of sustainable cocoa production practices by farmers with the main purpose of improving the sustainability of cocoa production in Ghana. (Imprest Administrator: Mr. Francis Osei-Owusu with his substitute Mr. Emmanuel Opuku and Imprest Accounting Officer Mrs. Miriam Okwabi, with her substitute Mr. Peter Osei Amoako)
Four of you opening continued….
PAGE 5 Nibiniyan• Bulletin from C&F April 2010
List of members:
Project Contact Email
FEEDER ROADS IMPROVEMENT PROJECT (FRIP)
E.B. Asafo-Adjei
Mac Numbo Boye
(Volker Kremplin)
021-662125
SMALL TOWNS WATER AND SANITATION PROJECT IN C/R & W/R
Joseph De Bats
David Otoo
CULTURAL INITIATIVES SUPPORT PROGRAMME
Kwasi Gyan-Apenteng
Joseph Zormelo
SUPPORT TO THE NAO'S OFFICE Mary Anne Addo
Ransford Danquah
COCOA SECTOR SUPPORT PROGRAMME - PHASE 2
F. Osei-Owusu
Miriam Okwabi
021-661752/661872/661757
AVIAN INFLUENZA PROJECT Dr. E.N. Barnor
DR. E. B. Mensah Koney
Improvement of Water Sector Performance Management Framework
Minta Afosa Aboagye
Joseph Aboagye
DEVELOPMENT OF NATIONAL & RIVER BASIN PLANS
Dorcas Adwoa Painstil
Steven Acheampong-Boateng
AXLE LOAD CONTROL Anthony T. Essilfie
Ebenezer Siadah
EASTERN CORRIDOR Anthony T. Essilfie
Ebenezer Siadah
Five Programme Estimates Projects have come to an end and we thank all the team members for the good work and outputs achieved. We say good-bye to the following teams:
§ 6th Micro Project Programme (30/06/2009) § MINING SECTOR SUPPORT PROGRAMME (19/08/2009) § PROTECTED AREA DEVELOPMENT PROGRAMME (PADP) PH.II
(02/10/2009) § SUPPORT TO THE GHANA AUDIT SERVICE - PHASE II(31/10/2009) § SUPPORT FOR LOCAL GOVERNANCE (31/01/2010)
As you can see the list of members is becoming smaller, as Programme Estimates end, and not as many new ones are opening. This, among others, is due to the fact the European Union is committed to the Paris Declaration and Aid Effectiveness Agenda, where Project Management Units are to be reduced/avoided and existing government channels used for aid distribution.
PAGE 6 Nibiniyan• Bulletin from C&F April 2010
Monitor outstanding commitments:
Most of the Programme Estimates will conclude one or more service or works contracts which will involve various payments over a period of time. Advances, other expenses and sometimes retention are to be paid.
It is your responsibility to scrupulously monitor the outstanding obligations and to ensure that contracts are not overpaid. In this respect it would be advisable to keep a list of all contracts, with the details of paid/recovered advance and outstanding obligations.
This will also help you indicate in your replenishment the amounts of ongoing commitments over the following months to establish your cash requirements.
Best practice
Today: Cocoa Sector Support Programme
In the past, hybrid varieties have been developed in Ghana for use in confronting the problems of low yields and susceptibility to diseases and pests. Some successes have been achieved. However, a survey conducted in all the six cocoa growing regions of Ghana revealed that the available planting materials being supplied to farmers are still low yielding and susceptible to cocoa diseases and pests. Continuous efforts are therefore, needed to develop varieties that can outperform those that are currently available, in a more sustainable manner. Among the planned activities under the Cocoa Sector Support Programme II, which has the overall objective of improving the livelihood of smallholder cocoa farmers, are:
i. Intensify the extension of education to cocoa farmers.
ii. expand the productive capacity of planting materials to improve farmers’ access to high quality hybrid planting materials.
iii. support replanting of large areas of old cocoa growing lands.
iv. support replanting of large areas of CSSV disease treated farms.
The expected results from the activities are to increase the adoption of sustainable cocoa production practices by farmers with the main purpose of improving the sustainability of cocoa production in Ghana.
PE no. 2 Budget: GH¢ 1,167,292.47 Duration: 25th Jan 2010 - 30th Nov 2010
Who is who
Do you know all your outstanding commitments at
any point in time…
A ripe cocoa pod ready to harvest the cocoa seeds…
PAGE 7 Nibiniyan• Bulletin from C&F April 2010
Upcoming: 1st semester 2010
26th March 2010: Information session on the call for proposal on Non State Actors to be launched in June
Target Group: Civil Society…. Sorry already passed 20-21 April 2010: 2nd Tripartite Workshop: Working Together The first day will focus on tender procedures and the second
day on the management of Programme Estimates Target Group: Management Units of the Programme
Estimates, the National Authorising Officer and the EC Delegation Ghana
May 2010: Training for new beneficiaries of grant contracts Target Group: Grant beneficiaries and their partners 31st May - 10th June 2010: Training on contractual procedures for the 10th EDF,
including Grants & Co financing and Programme Estimates Target Group: the National Authorising Officer and Ministries,
Department and Agencies, Project Management Units
The European Union Delegation Ghana PO.Box 9505 KIA, 81,Cantonments Road, Accra phone:+233-21-774094/ 774202 fax: +233-21-774154 www.delgha.ec.europa.eu
This newsletter has been edited by the Contract & Finance Section of the European Union Delegation Ghana.
We are grateful for any comments, contributions or suggestions you may have and welcome any small write-ups you would like to share with your “colleagues”.
For any of these matters, please contact: [email protected] or call on 021-7742/01 extension 133
Editorial
We would like to thank all those who contributed to the carrying out of this publication. This publication is only for information purposes and not legally binding.
Reproduction is authorised, provided the source is acknowledged.
Upcoming Events
Note them down in your agenda…