On June 22, 2011, the Committee on European Affairs and Oversight of the European Funds held a Hearing of the President of the Bulgarian National Audit Office Mr. Valeriy Dimitrov and the Executive Director of the “Audit of the European Union Funds” Executive Agency Ms. Dobrinka Mihaylova on the effectiveness of the Management and Control Systems for the European funds functioning in the country.
The following key messages can be highlighted in the information presented by the President of the Bulgarian National Audit Office Mr. Valeriy Dimitrov:
• 18 audit tasks concerning the management of the EU funds in the country being a part of the Audit Activity Program of the Bulgarian National Audit Office for 2010 have been accomplished. At present there are other 8 audit tasks in the area still to be accomplished and also another 5 thematic audit tasks have been included in the Audit Activity Program of the Bulgarian National Audit Office for 2011;

• The audits show progress in all reviewed Programs for the period 2007 – 2013, incl. the: “Regional Development” Operational Program, “Transport” Operational Program, “Environment” Operational Program, “Administrative Capacity” Operational Program, “Development of the Competitiveness of the Bulgarian Economy” Operational Program, “Human Resources Development” Operational Program, “Fisheries Sector Development” Operational Program and Rural Development Program. Nevertheless, the implementation rate still remains unsatisfactory that is predetermined by the time lost in the first several years of the programming period;

• Series of optimization measures have been undertaken but still the administrative capacity issue remains (the often change of employees at management level, etc.). Difficulties arise also from the lack of own funds in the beneficiaries at the project preparation stage (municipalities mainly). The most serious gaps for filling have been identified in the Rural Development Program 2007 – 2013.
The following messages can be highlighted in the information presented by the Executive Director of the “Audit of the European Union Funds” Executive Agency Ms. Dobrinka Mihaylova on the effectiveness of the Management and Control Systems functioning in the country:
• The Audit Authority carries out planned audit tasks in the reporting period (January - June 2011) related to: Compliance Assessment, system audits, audits of operations, winding-up audits under the ex-ISPA Program and Final Audit Report for the Schengen Facility;

• The audited units take timely and adequate corrective measures for the implementation of the recommendations given in the accomplished audits;

• The Final Report on the implementation of the Schengen Facility has been elaborated and will be submitted to the European Commission within the stipulated deadline (June 30, 2011);

• The administrative capacity of the Audit Authority has been strengthened. Audit software is currently being integrated that has been provided under the “Technical Assistance” Operational Program 2007 – 2013.

Mr. Valeriy Dimitrov and Ms. Dobrinka Mihaylova marked before the Committee the audit tasks in the area of European funds management in the country planned for 2011.

The presentation and discussion of the information during the Meeting is a part of the series of hearings before the Committee on European Affairs and Oversight of the European Funds aimed at exerting political control over the activity of the state administration structures engaged in the management of the European funds in the country. The materials and the debates of the meetings will be used in the elaboration of the Interim and Annual Reports of the Committee on the absorption of the EU funds in the Republic of Bulgaria.