ocp192_en

European CommissionThe Second Economic Adjustment Programme for Greece. Fourth ReviewΡar /ΡageMoU2.4.2.4MEFP(21)MoU2.4.2.5MEFP(21)MEFP(21)MoU2.4.2.6.iMoU2.4.2.6.iiMoU2.4.2.6.iiiMoU2.4.2.6.ivMEFP(19)Action Deadline Comments Statusprogress.The Government will prepare a medium-term action planfor meeting the requirement of the Late Payment Directivethat will include:i) an analysis of the IT systems to ensure that such a moveis feasible by the January 2014 deadline.ii) a review the legal framework on payment processeswith a view to simplify it considerablyiii) standardized thresholds above which different levels ofapproval are required across all line ministries.The Government will produce a joint note by the HellenicCourt of Auditors (HCA) and GAO on the role and scopefor streamlining of the HCA’s ex ante audits in financialcontrol following the review of the effectiveness of theHCA’s ex-post audit pilot scheme expected to becompleted in November with the assistance of the DutchCourt of Audit.We will conduct focused audits of the commitmentregisters of SSFs comprising EOPYY, starting with IKA,OPAD, OAEE, TAYTEKO, and ETAA.The Government will ensure that commitment registers arein operation in 94% of general government entities basedon 2013 entity coverage.The Government will monitor the effectiveness of thecommitment registers by conducting regular targetedinspections in the public entities covered by the system.The Government will enforce the obligation of accountingofficers to report commitments by enacting sanctions toentities not submitting needed data, though disciplinaryaction for accounting officers, and by strengthening therole of GAO in providing support and guidance toAccounting Officers.The Government will take actions as soon as significantdeviations from yearly targets of EOPYY become evident.The Government will pass legislation to establishpermanent procedures for the appointment of accountingofficers. In the meantime, vacant accounting officers’positions will be filled with temporary actingappointments.October 2013December2013August 2013September2013The action plan was submitted to EC/ECB/IMF.IMF remarks that it needs to be revised andreprioritized based on the February 2014 relevantTA report.In the updated version of MoU, the action wasrephased for April 2014 and its wording has beenchanged.Audit groups have been appointed with no.2/63044/ΓΓΔΕ - 01/07/2013 decision (ΑΔΑ:ΒΛ4ΩΗ-ΩΤΩ).For September 2013, 95% of the entities sent data.Observed.NotObserved.Pending.Observed.Observed.Continuous 25 audits were carried out. Observed.ContinuousContinuousJuly 2013As to the second part of the action, a relevantdepartment in the General Government BudgetDivision is incorporated in the new organizationalchart of GAO.Provisions will be included in the bill "Organizationfor Public Administration and other provisions" ofMAREG for general managers, SGs etc (topmanagement Law). It is expected to be voted in May2014.Observed.Observed.Pending.MEFP(19)Reorganization of the ministries (including accountingofficers).September2013Expecting from the troika to define the deliverableof the obligation.Pending.MoU2.4.2.7.iMoU2.4.2.7.iiMoU2.4.2.7.iiiMoU2.4.2.8.iMoU2.4.2.8.iiMoU2.4.2.8.iiiThe Government will complete procedures for identifyingfully qualified senior financial managers for theAccounting Office positions in all line ministries.The Government will appoint the Accounting Officersbased on these new procedures.The MoF/GAO and MAREG, in consultation with theAccounting Officers of the Ministries, ensure adequatestaffing for the financial functions in line ministries anddevelop training material and a training scheme for GDFSstaff.The Government will ensure the administrative capacity tomake the clearance of arrears effective by staffing thenecessary unitsThe Government will prioritize repayments by LocalGovernments and their legal entities to public companiesfor provisions of public services (namely water supplies)also through direct transfers from the special budgetallocation for clearance of arrears recorded in the Statebudget.The Government will identify and implement actions toensure clearance of all outstanding lump-sum pensions(accounted for as arrears until Dec-2011) by December2013.September2013September2013ContinuousSeptember2013September2013September2013Procedures for the selection of GDFS are already inplace and placements have occurred.Further provisions will be included in the bill"Organization for Public Administration and otherprovisions" of MAREG for general managers, SGsetc (top management Law). Expected to be voted inMay 2014.The action is ongoing and connected to theMinistries approved staffing plans. The staffing ofthe General Directorates of Financial Services is anobligation of each Ministry. A JMD was published(competent Ministry Mareg) regarding theestablishment of General Directorates of FinancialServices in every Ministry.Four more employees were allocated to TPDY.Moreover, leave requests have been suspended until31/12/2013 and staff is required to work twoSaturdays a month. In this way, 1.1 billion Euro of2011 outstanding arrears will be cleared within2013. MoHealth submitted a list with the actionstaken in order to strengthen the arrears paymentprocedure.MD FEK GG 1669/B/5-7-2013 provides for thepriority payment of arrears to companies of WaterSupply and Sewage, Gas etc. All the GeneralGovernment entities were funded for the payment ofarrears to Water companies. Legislation (Article 52of Law. 4186, GG 193/A/17-9-2013) provided forthe payment of LGs' arrears to the two water andsewage companies from the state budget throughtransfer of funds to the Ministry of the Interior,which paid all arrears.Until 2/12, € 1,139 billion Euros have been absorbedby the Public Employees Welfare Fund, which is thewhole amount expected to be absorbed until endDecember 2013.Observed.Observed.NotObserved.Observed.Observed.Observed.88