ocp192_en

3. Programme implementationwithin the scope of a wider reform of PFM already planned. Implementation of this Directive requiresthe payment of invoices within 30 days in principle, or 60 days in exceptional cases. Existing paymentprocesses are still encumbered by excessive layers of control, hampered by a lack of automation and areextremely slow. The structural solution (so called ERP project) is likely to take a number of years to becompleted whereas there is a need for an interim solution to meet the 30-day target in the short run. Acircular has been issued to all Fiscal Audit Offices (FAOs) by GAO instructing them that all paymentrequests must be processed within 20 days. Another crucial measure to shorten the payment processwas the shift of responsibility for payment execution from the tax offices (DOYs) to the FAOs. Thisaction eliminated one of the four pre-existing steps from the release of the budget appropriations to thecash payment through electronic transactions. Changes to existing IT systems and work processes arestill needed to ensure that the deadlines provided in the LPD are feasible or achievable. Further shortterm actions are going to be taken to streamline the internal processes from the moment the invoice issent to a public administration until the payment is made. The government committed to reduce thethreshold for pre-contractual audit carried out by the Hellenic Court of Audit (HCA). At the same time,the Plenary of the HCA is expected to give the consent for increasing the threshold of ex ante auditfrom the current EUR 15,000 up to EUR 45,000. This would reduce significantly the volume ofinvoices which are currently required to be audited ex ante by the HCA and will eliminate in manycases another step in the payment operations. GAO will also extend the use of the Fiscal ManagementInformation System now available for GAO only (FMIS) to the General Directorates for FinancialServices (GDFS) of the line ministries and the HCA, so that the payment process and transfer ofdocuments could be started in an electronic manner by GDFS and the HCA as of 1 January 2015. Thisimprovement should reduce the flow of papers allowing for HCA to carry out ex-ante audit in parallelrather than sequentially. Finally, it is urgent to enhance and adapt the current reporting framework ofarrears (outstanding obligation after 90 days) to monitor the compliance with the LPD and theformation of arrears after 30 days (60 days for healthcare spending), setting up statistical reports toenable follow-up on progress. For this purpose, information available in the e-portal will be used tomonitor areas of delays in all sub-sectors.56. While steps are already being taken, it has become urgent for Greece to transpose the FiscalCompact and have its Fiscal Council fully operational, following the entry into force of the TwoPack 6 , and to reform the Organic Budget Law. A working group has been established in 2013 toprepare the planned amendments to the organic budget law (OBL) and technical assistance has beenprovided to explore the scope for further strengthening the budget process. Given the delay accumulatedso far to transpose the fiscal compact and the other MoU requirements to safeguard fiscal commitments,a two-stage approach has been agreed to reforming the OBL. In the first stage, to be completed byApril, the OBL will be amended to transpose the Fiscal Compact. This will include the requirement thatthe MTFS set binding multi-year expenditure ceilings for line ministries and the health sector, introducea binding balanced-budget target for local governments and performance targets for SOEs, adoptprovisions to freeze 10 percent of discretionary appropriations in the first half of the year, and imposepenalties for government entities that fail to provide timely reporting. The Parliamentary Budget Office(PBO) is cooperating with this working group in order to ensure the participation of the Parliament inthe upcoming legislative changes of the organic budget law. In the second stage, following an upcomingTechnical Assistance mission, the Government will complete a full review of the budget processlegislation including ensuring budgetary independence of regulatory and other independent bodies.Moreover the second stage will be focussed on reviewing budget execution and Treasury management.The OBL will be subsequently amended to ensure that it is fully in line with the ongoing PFM reformprogramme and good international practice. Concerning the establishment of an independent authorityacting as monitoring institutions which support the credibility and transparency of the correctionmechanism provided in the fiscal Compact, the original plan to strengthen the reputation of the existingParliamentary Budget Office has been changed to move towards a standalone Fiscal Council. Changesto the OBL will also include the legal provisions to establish the new entity ensuring that its Board isindependent. It is crucial that the new entity will be soon fully operational in order to catch up the delayaccumulated so far.57. Progress has been made in the field of public procurement, but implementation is now crucial.Comprehensive new legislation on public procurement is expected to be presented to Parliament in May6 The Two-Pack comprises two Regulations designed to further enhance economic integration and convergence amongst euro area MemberStates. The Regulations were adopted on 13 th May 2013.37