CEF Annual report 2020

CEF
Annual Report
2020
Supporting capacity development
for finance officials in South East Europe
through learning

LEGEND
ACRONYMS
Blended learning is
a combination of online
learning activity and
face-to-face workshop
Round-table discussion
Webinar / Online course /
Online meeting
CIPFA
ECB
EU
ERP
Chartered Institute
of Public Finance and
Accountancy
European Central Bank
European Union
Economic Reform
Programme
CEF
Annual Report
2020
Conference
Workshop
FISR
GIZ
Fiscal Implications
of Structural Reforms
Deutsche Gesellschaft
für Internationale
Zusammenarbeit
Seminar
IMF
IT
International Monetary
Fund
Information Technology
High-level meeting
IPSAS
International Public Sector
Accounting Standards
In-country certification
program
Country visit / Study visit
Lecturing experts
Meeting
PACT
PEFA
PFM
SDG
SEE
Public Accountants
Certification Training
Public Expenditure and
Financial Accountability
Public Financial
Management
Sustainable Development
Goals
South East Europe
Broadcasting event
TIAPS
Training of Internal Audit
in the Public Sector

CONTENTS
6
8
10
13
15
17
18
20
22
27
28
32
36
36
38
41
42
44
47
49
50
52
56
61
65
94
CEF 2020 IN PICTURE
CHAIR OF THE CEF GOVERNING BOARD’S WELCOME
DIRECTOR’S WELCOME
BUSINESS REPORT
OUR APPROACH TO LEARNING
Learning Formats
CEF as a Learning Organization
Monitoring and Evaluation
The Art of Change in the Year of Covid-19
LEARNING AND KNOWLEDGE SHARING PROGRAM
2020 Learning and Knowledge Sharing Program
highlights
Leadership for Managing Reforms
Public Financial Management
Budget Preparation and Execution
Accounting
Auditing
Tax Policy and Administration
Central Banking
Data and Analysis for Designing Policies
GOVERNANCE
Governing Board
Advisory Board
Coordinators
Secretariat
FINANCIAL REPORT
APPENDIX: IMF Technical Advisors’ Report

2020 IN A PICTURE

8 CEF ANNUAL REPORT 2020 CEF ANNUAL REPORT 2020 9
CHAIR OF THE CEF GOVERNIN
ME
Dear colleagues, CEF staff and friends,
It has been more than a year since
humanity faced the pandemic shock
of Covid-19 and authorities across the
world stepped in with decisive actions
to address the risks to health and to
the economy.
The year 2020 has been challenging and determined
people to adapt and change the way of thinking, of doing
and of enhancing their activities. In such complex
context, Romania took over the rotating presidency of
the Governing Board of the Center of Excellence in Finance
(CEF) on June 11, 2020 and I am honoured to
have been designated to lead the Governing Board of
CEF in my capacity of Governor of The National Bank
of Romania.
Today, it is my great pleasure to praise CEF for becoming
a representative knowledge hub in the region,
whose efforts and endeavours are widely recognized,
in the field of training and capacity building for Ministries
and Central Banks alike. During my time serving
as Chair of CEF Governing Board, The National Bank of
Romania actively participated to ensure continuity and
development for the CEF mission. Please, allow me to
express my utmost admiration for the remarkable work
of Ms. Jana Repanšek, Director of CEF and its entire
team and I commend on the outstanding cooperation
within the framework of the CEF, for endeavours that
stand proof for deepening our binding commitments.
The CEF Annual Report for 2020 indicates a more than
50 percent increase in participation at the CEF’s learning
activities. CEF exceeded all expectations, might I
At the same time, in 2020, the usual Annual Meeting
of CEF Coordinators has been transformed to a series
of four virtual events that approached the most pressing
topics for debate, on how to better cooperate and
contribute to the professional training development caadd
against all odds in a time marked by some strict
lockdown measures, reaching out to more than 2.500
participants from 40 countries, and the staff deserves
the recognition and appreciation for such excellent
work.
During these unprecedented times, we have been able
to carry on the work under the best, comprehensive
and coordinated ways that have pushed our skills and
creativity to improve the knowledge of finance officials
through learning in alternative ways.
The fruitful cooperation between the National Bank of
Romania, the Ministry of Public Finance in Romania
and the CEF has found expression in mitigating regional
challenges while focusing on country specifics in implementation.
The human capital in the region of South
East Europe (SEE) will always be a key objective for any
institution, to progress and contribute to social upscaling
through knowledge sharing and professional learning.
As a regional hub for learning and development,
CEF’s ability to respond to regional challenges by focusing
on a tailored-to-needs implementation, is a success
factor in approaching the challenges and responding to
them adequately, as a core value of CEF and of the NBR,
at the same time.
Keeping in mind and at heart these core values, CEF
swiftly acted to switch the in-class activities to online
virtual meetings, adapting the content of the learning
materials and the communication channels to ensure
the same high quality training sessions and knowledge
dissemination in the region. I remain confident that
where challenges emerge, opportunities arise as well
and 2020 has been a serious test for our countries and
for the financial system, worldwide.
During Romanian Presidency to CEF Governing Board,
we have conceived and implemented an agenda of
events to raise the awareness regarding the CEF mission
and scope, focused on developing the international
cooperation and the exchange of knowledge and best
practices, as well as on underlining the recognition of
relentless work. In 2020, we celebrated 140 years since
the establishment of the National Bank of Romania and
the 20 years of CEF, in a partnership that continues to
evolve and expand in the future.
pacities, with a view on resilience, communication, leadership
and learning process.
In our leadership role to strengthen CEF capacities, we
have contributed to the development of a comprehensive
strategy for 2022–2026 in close consultation with
all the governance stakeholders. The priorities bring
forward the fostering of international cooperation and
progress for the benefit of CEF members and non-members,
and are drafted with a view for strategic areas in
the learning program of CEF, such as the Public Financial
Management, Tax Policy and Administration, Central
Banking, Leadership for Managing Reforms and Data
Analysis for Designing Policies.
As Romania’s mandate comes to completion on June 8,
2021, we express our deepest appreciation for the outstanding
work of CEF and our belief that only together we
are stronger. The excellent cooperation and the planning
will always smooth the path to the future. Slovenia takes
over the CEF Governing Board Presidency, along with the
strategic goals of CEF to advance and promote the learning
objectives, ensuring the continuity of CEF mission in the
region. We wish to CEF, to Slovenia and to all CEF members
and partners, every future success and re-affirm our strong
commitments to accomplishing our mutual objectives.
Mugur Isărescu
Governor of the National Bank of Romania

10 CEF ANNUAL REPORT 2020 CEF ANNUAL REPORT 2020 11
DIRECTOR’S WELCOME
Dear friends,
I am delighted to present to you the CEF’s
Annual Report 2020, sharing with you our
journey through this unprecedented year.
Like for most of the world, the CEF’s year took a stark turn
on Friday, March 13, when we packed our computers and
prepared for an undefined period of working from home.
While the switch was seamless technology-wise, it was far
more complex in other areas. That is why we established
early on three priorities – strategic, operational, personal
– and framed our work and lives around them.
Starting with the strategic focus, we continued drafting
our strategy for 2022–2026 and consultations with our
governance stakeholders. We will present the new CEF
strategy at the annual meeting of the Governing Board
in 2021.
On the operational side, one of the main challenges
was how to execute the learning program for 2020 in
the online environment. With the entire team dedicated
to this goal, we anticipated the first learning event with
some level of anxiety. Much to our relief, all the hard
work invested in building a strong connection with our
constituency paid off, and our first webinar during the
lockdown had excellent participation. This gave us additional
motivation to transform the remaining activities
into an online format. We made sure that the learning
activities were relevant to the demands of the region
and the prospects brought by the Covid-19 pandemic.
We also applied many innovative approaches to make
the online learning environment engaging.
In the end, 2020 proved to be quite a remarkable year.
We carried out 74 learning and knowledge sharing activities,
attended by 2,526 participants – a 51% increase
compared to 2019. Only 11 of them were delivered as
face-to-face workshops or meetings. In addition, we designed
a number of knowledge products that enriched
our learning offer.
Although from the outside, it might seem that our team
managed these extreme circumstances with relative
ease, great efforts were needed to make the CEF 2020
story a success. This is why in our adopted approach, the
personal focus was in fact the first and most important
one. Many of our staff members took on additional roles
as part-time teachers and facilitators, while others were
isolated from their loved ones living in another country.
I feel immensely grateful to the entire team for going
many extra miles in their dedication to the CEF, and to
the people of the region that we all serve.
I am equally deeply thankful for the steadfast support
that we received from our partners, donors, affiliated
and external experts, Coordinators, the Governing Board
and the Advisory Board, and countless public officials
working in institutions throughout the region. You made
our journey through this year a lot easier. We look forward
to continuing this very productive dialogue with
you. We are confident that together we will carry on promoting
innovative ways in which knowledge is communicated,
absorbed and shared.
The learnings we gathered in this extraordinary year
should not be just a moment in time. This common experience
needs to become a movement towards a better
prospect. When planning our next steps, we should all
keep in mind that the history has its eyes on us, with the
future already standing at our doorstep.
Jana Repanšek
Director
OUR MISSION
We support capacity development for finance
officials in SEE through learning.
OUR WORK
We work with our constituency by directly
contributing to the design and implementation
of their public financial management,
tax policy and administration,
data and analysis for designing policies
and central banking reform efforts. We
do this through innovative, participatory,
and practical learning solutions. The CEF
serves as a knowledge hub for the region:
we combine topical expertise and
in-depth knowledge of countries with a
good grasp of leadership skills required
to manage reforms. We know how to nurture
and deepen learning among individuals
and institutions.
OUR HISTORY
We were established in 2001 under the
Stability Pact for SEE by the Slovenian
Government, at the initiative of the Slovenian
Ministry of Finance and in close
cooperation with other ministries of finance
of former Yugoslav countries and
Albania. In 2015, the CEF became an
international organization.
OUR CONSTITUENCY
We primarily serve ministries of finance,
tax administrations, and central banks in
Albania, Bosnia and Herzegovina, Bulgaria,
Croatia, Kosovo, Moldova, Montenegro,
North Macedonia, Romania, Serbia,
Slovenia, and Turkey. We also address capacity
development needs of line ministries
and other key stakeholders and are
present in some other countries.

BUSINESS
REPORT

OUR
APPROACH
TO LEARNING
We are a leader in applying peoplecentered
learning approaches. They are
associated with effective learning as
they induce (critical) thinking, analysis
and problem solving.
Learning
needs of our
learners
Creative
learning
environment
Acquired
skills and
knowledge of
learners
CEF’s
participatory
learning
approach
Learner at
the heart of
the learning
process
A range of
learning
methods and
tools
Learners’
feedback

16 CEF BUSINESS REPORT 2020
OUR APPROACH TO LEARNING 17
Learning Formats
For our learning and knowledge sharing activities, we choose learning formats
that fit their purpose, learning objectives, and location:
• certification programs
• online courses
• workshops
• webinars
• meetings
• conferences
• study visits
• knowledge products: video lectures, papers, case studies, blog posts,
Line Ministries Portal feeds
They can be organized in classrooms, online, or as combined (blended/hybrid),
and they are of different duration. Microlearning activities, such as video lectures
or webinars, are short; macrolearning activities are of longer duration, e.g. 2.5-
day workshops and online courses, or certification programs for public sector
accountants and auditors (PACT and TIAPS) that take one year or more.
CREATIVE LEARNING ENVIRONMENT
OUR LEARNING ENVIRONMENT THAT AFFECTS LEARNERS’ CREATIVITY INCLUDES:
PHYSICAL
ENVIRONMENT
VIRTUAL
LEARNING
SPACES*
LEARNER AND
KNOWLEDGE PROVIDERS’
ENGAGEMENT
CLASSROOM
(LEARNING)
ATMOSPHERE
* Online Learning Campus, Line Ministries Portal, other online (meeting and social media) platforms
We take great care of constantly upgrading these elements. Our learning experts
are always on the lookout for new learning techniques and learner engagement
methods, as well as the latest online delivery technologies. We also continually
invest in our premises, creating a pleasant and motivating physical environment
for the participants of our events.

18 CEF BUSINESS REPORT 2020
OUR APPROACH TO LEARNING 19
CEF as a
Learning
Organization
We hold the know-how
of becoming a learning
organization (knowledge hub).
Knowledge hub is a learning
organization that is dedicated
to capturing, packaging and
sharing experiences and
knowledge with partners to
accelerate development.
Having a mission to share our know-how
about becoming and being a learning organization,
we function as a knowledge
hub for other institutions that would like
to become learning organizations and
serve as knowledge hubs for others.
OUR FRAMEWORK INCLUDES SIX BUILDING BLOCKS:
Governance
and Culture
Partnerships
Funds for
Learning and
Knowledge
Sharing
Knowledge
Capturing,
Packaging,
and Sharing
Synergy of governance and culture involves developing new attitudes and
behaviors, such as a coaching and mentoring culture, thoughtful listening,
open-minded questioning, and acceptance of opposing points of view.
Well-planned resources for learning and strategic partnerships are crucial
elements of a learning organization.
Knowledge capturing, packaging and sharing is a meeting point between our
internal learning and being knowledge providers for others. We often merge
and combine how we learn internally and how we deliver learning as a service.
We communicate about learning through our website, social media channels,
monthly newsletter, knowledge products and publications, and integrate
them into our future learning activities. Our Blog on Learning is a go-to place
for learning about learning.
Communication
about Learning
Monitoring and
Evaluation
We:
• put emphasis on learning environment,
how learning happens and how
it influences individuals and their institutions
• recognize the existing knowledge in
public institutions and understand
their learning needs
• organize knowledge sharing in different
formats, using a range of learning
tools and methods
• nurture networking among all learners
and knowledge providers
• encourage ownership through partnerships
and participation of all learners
and knowledge providers
• adapt as we go
Many institutions, teams and officials from our constituency are expressing
the readiness to invest in capturing, packaging and sharing knowledge. In
2020, we continued to support public officials in sharing their knowledge and
expertise, for example through:
• on-the-job training and mentoring of the Montenegrin Human Resource
Management Authority that took over running independently certification
programs for internal auditors and accountants (TIAPS and PACT) in the
public sector of Montenegro
• training of trainers for tutors of the certification program for public accountants
implemented in North Macedonia
• establishing a Network of Regional Experts (NRE) promoting learning and
knowledge sharing about the fiscal implications of structural reforms
• online peer learning sessions for CEF Coordinators, CEF team and others,
designed to enhance knowledge and experience exchange on the transformation
galvanized by the pandemic

20 CEF BUSINESS REPORT 2020
OUR APPROACH TO LEARNING 21
Monitoring and Evaluation
We set targets for our work in our annual learning and knowledge
sharing program, project-related results frameworks, internal change
initiatives as well as specific objectives for each activity. We link our
annual performance plans to these targets at the institutional, team
and personal level. As part of monitoring risks, we regularly reassess
these targets and decide whether any mitigating work is needed.
RISK MANAGEMENT
Our risk management process supports decision-making
and planning, increases managerial
accountability, and ultimately leads to
greater efficiency and effectiveness. It also
improves service quality and supports the
ongoing change management efforts that the
CEF needs to undergo to thrive as a learning
organization.
To demonstrate the value that we create, we use a wide
range of quantitative indicators, such as participation
statistics and surveys from our events, complemented
by qualitative information gathered in exchange with the
key stakeholders of our work.
As a regional knowledge hub and learning organization,
we value open and direct feedback, and develop processes
to loop the lessons learned back into improving
our daily work and reviewing our strategic direction. In
gathering feedback, we pay special attention to unaddressed
learning needs, opportunities for further knowledge
sharing, and how new knowledge is applied.
To collect feedback, we use a range of tools and
opportunities from carrying out evaluation surveys after
the events and capturing value creation stories about
behavioral changes to promoting structured evaluation
conversations.
In 2020, we invested into more consultations with
key officials from our constituency, and thus gained a
deeper understanding of individual learners’ motivation.
Furthermore, as part of preparing our next strategy,
we reviewed how we performed on the different
objectives set out for our respective thematic priorities
and projects.
With the Covid-19 pandemic, we had to factor
in new aspects and considerations. We have
taken many preventive measures to foresee
and, if necessary, mitigate the consequences
of related risks. These measures addressed:
• policies and procedures
• facilities, supplies and finances
• learning and training
• communication and messaging
All of them were evaluated in the context of our
working environment and on external factors.
REALIZATION OF SUSTAINABLE DEVELOPMENT GOALS
Our activities support the realization of Sustainable Development Goals (SDG) that are part
of the Agenda 2030 for Sustainable Development. The CEF activities support particularly the
following two sustainable development goals.
SDG 16: PROMOTE PEACE, JUSTICE AND STRONG INSTITUTIONS
All CEF learning and knowledge sharing activities are intended to improve the capacities of public
officials in order to facilitate their work performance. The final goal is to support the officials,
their public financial management, tax policy and administration, and central banking reform efforts
and, as a consequence, build effective, accountable and inclusive institutions at all levels.
SDG 17: REVITALIZE THE GLOBAL PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT
On the way towards realization of the SDGs, the CEF is partnering with multilateral and bilateral
organizations, knowledge institutions, peer organizations, finance ministries, line ministries,
central banks and other institutions from our constituency. The partners share our
commitment to the region’s reform efforts. This strong and reliable partner network creates
valuable synergies in implementing international development cooperation and thus accelerates
progress in the realization of the SDGs.

22 CEF BUSINESS REPORT 2020
OUR APPROACH TO LEARNING 23
The Art of Change
in the Year of Covid-19
Leveraging from extensive in-house expertise,
we swiftly and without major obstacles
upgraded our work to meet the new imperatives
of the online-only world.
Our team’s great enthusiasm and desire to continue innovating
far exceeded the wish to simply weather the imposed situation.
With this approach, we were able to, among many other activities,
carry out all the envisioned country specific events, organize
the Governing and Advisory Board meetings, conduct our biennial
Coordinators meeting through several virtual learning sessions,
hold the first hybrid event in the form of an internal art workshop,
and re-launch the CEF’s Instagram account. Last but certainly not
least, we organized our first live broadcasting event Navigating
Towards the New Normal Economy.
A CLOSER LOOK:
ADAPTATION, INNOVATION, PROGRESS
More specifically, we:
• re-designed face-to-face workshops into online courses
• selected online platforms that correspond to our
needs
• optimized the work-flow processes for online events to
reflect the online-only environment
• started issuing a digital certificate of attendance
• further utilized the functionalities of the existing tools
and tested new innovative tools
• enhanced internal and external information and
knowledge sharing through different channels
• boosted the visibility of our work with increased online
presence and promotion (CEF’s website, social media
channels, blog section, Line Ministries Portal, e-news)
• enhanced capacities for facilitation and participants’
engagement (virtual coffee breaks, story creation,
quiz time, breakout sessions)
• established new solutions for live online translation,
including using a speech translation software
TAKE A BREAK WITH US
As one of the responses to the
reality of 2020, we added the
“Take a break with us” e-news
to the list of communications
with our audience. In it, we
share interesting trivia and feelgood
hints for improving ones’
work and life, inviting people to
pause for a moment.

PLAN

REALITY

LEARNING AND
KNOWLEDGE
SHARING
PROGRAM
We base our partnership with public
officials in SEE on delivering wellbalanced
learning and knowledge
sharing initiatives, spanning across
five thematic areas, as well as
governance and outreach activities.
Public
Financial
Management
Budget Preparation
and Execution
Accounting
Auditing
Leadership
for Managing
Reforms
Tax Policy and
Administration
Data and
Analysis for
Designing
Policies
Central Banking

28 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 29
2020 PARTICIPANTS BY THEMATIC AREA
Learning and Knowledge
Sharing Program highlights
74 3,390 213
LEARNING
INITIATIVES*
8
KNOWLEDGE
PRODUCTS
* The number does not include participants at governance and outreach events.
PARTICIPANT
LEARNING DAYS
2,526
PARTICIPANTS*
LECTURING
EXPERTS
CENTRAL BANKING
12 %
TAX POLICY AND
ADMINISTRATION
10 %
BUDGET
PREPARATION
AND EXECUTION
27 %
ACCOUNTING
10 %
LEADERSHIP FOR
MANAGING REFORMS
28 %
AUDITING
10 %
DATA AND ANALYSIS
FOR DESIGNING POLICIES
3 %

30 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 31
The 2,526 participants, who attended 74 learning and
knowledge sharing initiatives with 213 lecturing experts
in 2020, accumulated a total of 3,390 participant learning
days.
In addition, we designed 8 knowledge products. Knowledge
products capture the knowledge generated at a
learning and knowledge sharing activity, such as recommendations,
findings, insights, good practices, and the
lessons learned. We repackage knowledge in a format
(videos, printed and online publications, reports and other
materials) that enables further sharing.
Most of the activities were delivered online; only 11
events were organized in person at the CEF headquarters
or other locations in Georgia, Montenegro, North
Macedonia and Slovenia.
Participation costs (travel and accommodation) for
in-person events were either financed through project
funding or by a sponsoring institution, i.e., their employer
or a donor. For in-kind attendance, costs are estimated
at EUR 200 per participant per day plus EUR 500 for
airfare. In-kind attendance from institutions situated in
the country of the event location and for participants of
online learning events is estimated at nil travel and accommodation
cost.
COUNTRY
ALL
PARTICIPANTS
ONLINE
PARTICIPANTS
FACE-TO-FACE
PARTICIPANTS
(non-financed)
ALL
DAYS*
ONLINE
DAYS*
FACE-TO-FACE
DAYS*
(non-financed)
COSTS
EUR
Albania 242 228 2 322 289 8 2,500
Bosnia and Herzegovina 208 193 1 260 227 4 1,400
Bulgaria 64 56 6 79 57 16 6,300
Croatia 48 36 10 67 33 28 10,700
Kosovo 169 156 4 214 186 11 4,200
North Macedonia 360 335 5 551 484 18 6,000
Moldova 110 101 1 94 72 2 900
Montenegro 215 174 1 350 227 4 1,400
Romania 116 115 0 116 113 0 0
Serbia 236 223 1 489 459 4 1,400
Slovenia 81 66 15 90 45 46 0
Turkey 324 308 0 400 367 0 0
Total (CEF constituency) 34,800
Other countries 353 337 6 357 317 16 6,100
Total 2526 2328 52 3390 2878 158 40,900
OTHER COUNTRIES:
Armenia, Austria, Azerbaijan, Belgium, Egypt, Estonia, France, Georgia, Germany, Greece, Hungary, Indonesia, Ireland,
Jordan, Latvia, Lithuania, Malta, Mongolia, Morocco, the Netherlands, Pakistan, Poland, Slovakia, Switzerland, Tajikistan,
Ukraine, the United Kingdom, USA.
* Numbers are rounded

32 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 33
Leadership for
Managing Reforms
2020 was an excellent year to
practice the true meaning of
leadership for managing reforms.
The pandemic has made it clear that
rapid changes are possible when
everybody is part of the change.
KNOWLEDGE PRODUCTS
• How Learning and Knowledge Sharing Can Work for
You (printed and online publication)
https://www.cef-see.org/publications
• Importance of Workplace Environment and Culture
(video)
www.youtube.com/user/communicationsCEF
• CEF Coordinators – Stories from Their Surroundings
(digital story)
https://centerofexcellenceinfinance.exposure.co/
The vision of what is leadership is inevitably
changing. We reflected a lot on
this at the workshop Coordinators of
Economic Reform Programs as Inspired Leaders.
Participants reflected on their roles in guiding,
challenging, and training others, and learned how
teams improve performance through assigning the
right roles to the right people.
As our last face-to-face event of the year, we organized
Networking for Structural Reforms – an annual
event that brings together public officials and
experts from the Western Balkans and Turkey. We
also put attention to the coordination processes of
costing and budgeting the ERPs in these countries,
and supported their learning for better policy drafting
and negotiations.
One of the highlights was the broadcasting event
Navigating Towards the New Normal Economy. The
event explored the leadership styles needed for navigating
in the post Covid-19 economies, the importance
of data analysis as support in decision-making
processes, and the options for cross-sectoral
collaboration in policy design. Through webinars,
we addressed also other Covid-19 related leadership
challenges.
Natasha Ilijeva Acevska
Senior Program Officer and thematic area lead
EVENTS
Foresight and Scenario Planning
Methodologies
On the Way to Become a Knowledge Hub
Regional Networking for Structural
Reforms (Bled, Slovenia)
Exploring Ways Forward for the ERP
Process
Coordinators of Economic Reform
Programs as Inspired Leaders
Covid-19 Crisis: Leadership Challenges
in Public Institutions
Online Meetings to Launch the 2021–
2023 Economic Reform Program
Coordination Schemes in Costing
Structural Reforms*
NRE in Structural Reforms
Policy Drafting and Negotiation
in Line Ministries
Navigating Towards the New Normal
Economy
* Six events organized for Albania, Bosnia and
Herzegovina, Kosovo, North Macedonia, Montenegro,
Serbia and Turkey.
PROGRAM DONORS
• EU
• Ministry of Finance, Slovenia
OTHER PROGRAM PARTNERS
• Bled School of Management (IEDC), Slovenia
• Ministry of Foreign Affairs, Slovenia

34 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 35
THE FISR EVENT
I ATTENDED*:
… taught me how to translate policies and measures into
simple, comprehensive and understandable messages.
— DESANTILA MUJA
… offered a chance to work together with the CEF and try
to improve the links between the fiscal framework and
structural reforms in the specific Bosnian and Herzegovinian
environment of fiscal federalism.
— ZORAN ZELJKO
… contributed to a more precise estimation of measures
and activities to be integrated into the state budget. The
learning initiatives had a good impact on communication
between the Ministry of Finance and line ministries in the
sense of collaboration regarding structural reforms.
— ZANA RADONIQI
… gave me new knowledge that is applicable in my everyday
duties and has encouraged me to create and share
new ideas as a way to improve resolving tasks and challenges.
I also consider gaining many new friends and colleagues
from all over the region as a personal success.
— GORDANA STANIŠIĆ
… gave me insights into how CEF events are the place
where theory meets practice, which is the best-fitted approach
to organizing workshops of this format. Also the
Line Ministries Portal is certainly an effective tool for easily
sharing information, ideas and opinions in the region.
— NIKOLINA TOMEVSKA
… was in line with the defined goals and my personal
needs in the area of programing and budgeting of ERPs.
I heard and learned a lot of important facts and useful
things from experts, which I will use in my further work
in the area of ERP.
— SLOBODANKA MARJANOVIĆ
… brought the realization that increasing communication
channels to meet colleagues online can be an effective
tool for improving the integration of structural reforms
into all public documents.
— FUNDA BOZKURT
FISCAL IMPLICATIONS OF
STRUCTURAL REFORMS (FISR)
FISR is a multi-beneficiary project implemented
by the CEF and funded by the EU.
The project is targeted to the EU candidate
and potential candidates in the Western
Balkans and Turkey. It aims to strengthen
analytical capacities needed for comprehensive
assessment of fiscal implications
of the structural reforms, promote greater
fiscal policy coordination among relevant
authorities, and stimulate exchange of good
practices in the region. It was launched in
2019 and will continue until early 2022.
PROJECT DELIVERABLES IN 2020
A comprehensive learning portfolio: 31 learning initiatives
and two regional meetings – over five knowledge sections:
costing, budgeting, enabling environment, transparency, and
preparing high-quality documents.
GOING LOCAL
We delivered 20 in-country customized learning
initiatives online in the local languages of
participants from the seven project countries.
They were attended by 706 participants: 67%
from line ministries and 23% from ministries of
finance and other institutions.
GOING REGIONAL
We organized 11 regional events: four workshops,
four online courses, a webinar, a
high-level broadcasting event and online ERP
Coordinators meeting. The events gathered
464 participants: 27% from line ministries
and 63% from ministries of finance and other
institutions.
We re-established the network of regional
experts in structural reforms to function as
a community of practice. It has 34 members
from all project countries, including 20 from
line ministries.
We have also increased the usage of our Line
Ministries Portal, bringing forward the updates
about CEF’s work as well as news from
the region and wider.
FISR KNOWLEDGE
PRODUCTS
• Methodological Guidance for Costing
of Structural Reforms (video lecture,
available at www.youtube.com/user/
communicationsCEF
• How Learning and Knowledge Sharing
Can Work for You (printed and online
publication, the latter available at
www.cef-see.org/publications)
• Importance of Workplace Environment
and Culture (video interview,
available at www.youtube.com/user/
communicationsCEF
In addition, a study “Enabling Environments
for Improved Costing and Budgeting
of Structural Reforms in Western
Balkans and Turkey” and a position paper
with consolidated recommendations
for revisions of the ERP Guidance Note
of the EC in view of the Covid-19 crisis,
with a special reference to the fiscal
implications of structural reforms, were
prepared.
At the Line Ministries Portal, we published
throughout the year the la test information,
learning resources and learning
opportunities relevant to carrying
out structural reforms in the beneficiary
institutions and countries.
www.lineministries.org
* The statements present the condensed and for content purposes
slightly edited essence of longer value creation stories.

36 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 37
Public Financial
Management
BUDGET PREPARATION
AND EXECUTION
We deliver the program in
collaboration with the IMF
PFM advisor for SEE , based at
the CEF, who contributed the
contents informed by her capacity
development missions in the region.
KNOWLEDGE PRODUCTS
• How to Institutionalize Spending Reviews –
Case Study on the Slovak Republic (online
publication)
https://www.cef-see.org/publications
• Investment Planning and Evaluation –
Case Study on the Slovak Republic (online
publication)
https://www.cef-see.org/publications
• Methodological Guidance for Costing of
Structural Reforms in Short (video)
www.youtube.com/user/communicationsCEF
PROGRAM DONORS
• EU
• Ministry of Finance, Slovakia
• Ministry of Finance, Slovenia
• PEFA Secretariat
OTHER PROGRAM PARTNERS
• Brussels Region, Belgium
• EC (DG EMPL, DG ECFIN)
• International Monetary Fund
• Ministry of Labour, Family, Social Affairs and Equality, Slovenia
• Parliament of Austria
• Parliament of Montenegro
• State Supreme Audit, Albania
• The World Bank Group
One of the biggest achievements in
the program were 14 country-specific
online courses on the costing and
budgeting of structural reforms that were adjusted
to the particular learning needs of line and finance
ministries from seven countries of Western
Balkans and Turkey. Online delivery enabled us to
reach a wider audience and promote more interaction
and knowledge sharing among countries.
2020 was marked also by close cooperation with
the PEFA Secretariat. Together, we delivered four
joint webinars to cover some of the most current
and relevant topics, such as gender budgeting,
utilization of PEFA for PFM improvements, PFM
at a subnational level, and the role of parliament
in budgeting.
We are also proud that our last face-to-face event
delivered before the pandemic, Managing Pension
System Reforms, was awarded second place
in the category of the best business-to-business
events at the Conventa annual competition for
the best event in the region.
Tara Vasiljević
Program Specialist and thematic area lead
EVENTS
Managing Financing and Costing of
Pension System Reforms (CEF, Slovenia)
Are Public Finances Gender Aware?
PEFA Deep Dive into Global Trends
Fiscal Programming of Structural
Reforms
Integration of Structural Reforms into
Budgets*
Knowledge Sharing on Costing of
Structural Reforms*
Using PEFA to Support PFM
Improvement
Reinforcing the Role of Parliament in
the Budgeting Process
Carrying Out PEFA Assessments at
Subnational Levels
* Seven events organized for Albania, Bosnia
and Herzegovina, Kosovo, North Macedonia,
Montenegro, Serbia and Turkey.

38 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 39
ACCOUNTING
KNOWLEDGE PRODUCTS
CERTIFICATION PROGRAMS
The program supports the transition
to accrual accounting through
closer alignment with international
standards and best practices. It
fosters public institutions’ cooperation
to ensure accountability, transparency
and decision-making based on
reliable and complete information.
We delivered the program in collaboration with
the IMF PFM advisor for SEE.
• Perspectives of Implementation of International Public
Sector Accounting Standards (IPSAS) and Transition
to Accrual Accounting (printed and online publication
in English)
https://www.cef-see.org/publications
• Perspectives of Implementation of International Public
Sector Accounting Standards (IPSAS) and Transition
to Accrual Accounting – Montenegro (printed and
online publication in Montenegrin, with an appendix
on expert findings based on standards and public institutional
aspect)
https://www.cef-see.org/publications
PACT, the certification training program for
public accountants, is internationally recognized
and offers a certificate and a diploma
level. It consists of various structured learning
modules and transfers knowledge to ensure
the program’s local sustainability.
We concluded PACT for the third generation
of students in Montenegro and handed over
the program to the local Ministry of Finance
and Social Welfare and the Human Resources
Management Authority, which will be running
it on its own. We also started PACT at the certificate
level for the third generation of public
sector accountants in North Macedonia.
EVENTS
We concluded the certification training
for the third generation of public
sector accountants and coordinated
the process of drafting by-laws to the new Law on
Public Sector Accounting in Montenegro. We also
initiated a successful transformation of PACT
(program for public sector accountants) in-class
training to an online format in North Macedonia.
We are also proud of driving the localization as
a support to local institutions in taking over the
PACT in Montenegro. Thus, they developed their
human resources management and organizational
knowledge sharing capacity.
One of the highlights of the year was our program
development on the topic of management
of non-financial public sector assets through an
extensive online course. The course motivated
participants and experts to scan knowledge gaps
and needs, and encouraged us to develop related
learning initiatives in the coming years.
Jasmina Popović
Program Officer and thematic area lead
International Public Sector Accounting
Standards (IPSAS) Training
(Budva, Montenegro)
PACT North Macedonia:
Methodological Training of Tutors (ToT)
(Skopje, North Macedonia)
PACT Montenegro: Sharing and
Reflecting on Lessons Learned in PACT
Program Implementation
PACT North Macedonia: Introduction to
Public Accounting Certification Training
in North Macedonia
PACT North Macedonia: Training of
Tutors (ToT) for the Financial Accounting
Module
Financial Accounting
Managing Public Sector Assets
PACT North Macedonia: Financial
Accounting and Covid-19: Using
Financial Information for Better
Decision Making in Times of Crisis
PACT North Macedonia: Management
Accounting and Covid-19: Using
Financial Information for Better
Decision Making in Times of Crisis
Cost Accounting Techniques
PROGRAM DONORS
• EU
• Ministry of Finance, Slovakia
• Ministry of Finance, Slovenia
• Ministry of Foreign Affairs, Slovenia
OTHER PROGRAM PARTNERS
• CIPFA
• Faculty of Economics, Ss. Cyril and Methodius
University, North Macedonia
• Faculty of Economics, University of Banja Luka,
Bosnia and Herzegovina
• Faculty of Public Administration, University of
Ljubljana, Slovenia
• International Monetary Fund
• Massey University School of Accountancy, New
Zealand
• Ministry of Finance and Social Welfare, Montenegro
• Ministry of Finance, North Macedonia
• Ministry of Physical Planning, Construction and State
Assets, Croatia
• Parliamentary Budget Office, Austria
• Zurich University of Applied Sciences, Switzerland
PACT Montenegro
Third generation: started in September 2018,
concluded in December 2020
Number of certificates awarded: 38
PACT North Macedonia
Third generation: started in January 2020
Number of students enrolled: 35

40 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 41
AUDITING
Throughout 2020, we have adjusted the content of our
learning initiatives to reflect the immediate and upcoming
consequences of Covid-19. We have also broadened our
cooperation with the experts from the region. Mr. Victor Lipet from the
National Bank of Moldova shared his insights and expertise at our Developing
Internal Auditor’s Communication Skills online course. Ms. Zorica
Bozhinovska Lazarevska from the Faculty of Economics, Ss. Cyril and
Methodius University in Skopje, contributed her knowledge and experience
at the webinar Code of Ethics in the Profession of Internal Auditing.
With this webinar, we introduced a new topic in the thematic area of
auditing. The aspect of the code of ethics generates high interest and
is highly relevant to public sector internal auditors. They are requested
to undertake training related to ethics in the internal audit profession
to keep their Certified Internal Auditor license from the Institute of
Internal Auditors valid. As the subject is still not given sufficient focus
and there are very limited learning opportunities available, we plan to
explore it further in our future learning program.
We added another milestone in the past year by successfully completing
the preparatory project for introducing TIAPS certification training
in Georgia.
Kaja Jurtela
Program Specialist and thematic area lead
Arjonela Dedja
Program Facilitator
Our program in internal auditing is
designed to support strengthening of
public internal control arrangements,
and is strongly rooted in the Public
Internal Control framework for the EU
Member States and the Public Internal
Financial Control framework for EU
enlargement countries.
EVENTS
TIAPS Georgia: Localization Working
Group Meeting #2 (Borjomi, Georgia)
Code of Ethics in the Profession of
Internal Auditing
Ways to Optimize Internal Control of EU
Funds (CEF, Slovenia)
Key Steps to Effective Planning of an
Internal Audit Engagement
Implementing Financial Management
and Control
Developing Internal Auditor’s
Communication Skills
IT Auditing
PROGRAM DONORS
• Gesellschaft für Internationale
Zusammenarbeit (GIZ)
• Ministry of Finance, the Netherlands
• Ministry of Finance, Slovakia
• Ministry of Finance, Slovenia
OTHER PROGRAM PARTNERS
• Court of Audit, Slovenia
• Faculty of Economics, Ss. Cyril and
Methodius University, North Macedonia
• Ministry of Finance, Georgia
• National Bank of Moldova
CERTIFICATION PROGRAMS
TIAPS, training certification program for
public sectors auditors, is an internationally
recognized program developed in cooperation
with CIPFA. It has a certificate and
a diploma level, and consists of various
structured learning modules and transfers
knowledge to ensure local sustainability of
the program.
In 2020, we concluded a preparatory project
for TIAPS in Georgia. The CEF assisted the
Public Internal Control Unit of the Georgian
Ministry of Finance with the initial steps in
establishing the basis for implementing a
Georgian TIAPS program at the certificate
level. Three international modules were
translated into the Georgian language and
relevant local context was added. We supported
setting up the localization working
group that provides guidance and support
in the takeover of the project by the Georgian
authorities.

42 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 43
Tax Policy and
Administration
Our tax policy and administration
learning program addresses
organizational effectiveness of tax
administrations and management
of core tax administration
procedures.
We delivered the program in collaboration with
the IMF revenue administration advisor for SEE,
based at the CEF, who contributed the contents
and gave advice informed by his capacity development
missions in the region.
The lockdown happened only days before
our first tax workshop of the year
was scheduled. Consequently, we had
to promptly adapt its topic and format. Managing
Tax Administrations Through the Covid-19 Pandemic
and Change was carried out as an online course
where we promoted the exchange of experiences on
how tax administrations managed their responses
to the evolving Covid-19 pandemic.
We connected senior tax administration officials and
supported them in adopting, learning and relearning
new skills to manage and lead their teams and institutional
responses to Covid-19 realities. In times of
big uncertainty, managers considered this event as
a rare opportunity to talk and help each other.
We continued working with a strong and reliable
network of international and regional experts
that created valuable synergies in bridging regional
knowledge gaps. We are proud that there were
more regional experts involved in active contribution
during the learning processes than ever before. The
online environment also enabled us to host more
participants from different countries.
EVENTS
Developing Tax Administration
Change Management Capability
Tax Audit in the Context of Behavioral
Compliance Risk Management (CEF,
Slovenia)
Managing Tax Administrations
Through the Covid-19 Pandemic and
Change
Increasing Taxpayer Compliance and
Reducing Compliance Costs
Identifying Tax Fraud, including
Online Trade
Fostering Domestic Revenue
Mobilization (DRM) through
Cooperation
Estimating the Tax Gap
Auditing Value-Added Tax
PROGRAM DONORS
• International Monetary Fund
• Ministry of Finance, the Netherlands
• Ministry of Finance, Slovenia
OTHER PROGRAM PARTNERS
• Customs and Tax Administration, Denmark
• Financial Administration of the Republic of
Slovenia
• Institute of Social Sciences and Humanities,
North Macedonia
• International Monetary Fund
• Ministry of Finance and Economy, Albania
• Organization for Economic Co-operation and
Development
• Public Revenue Office, North Macedonia
• Tax Administration of Kosovo
Maja Tomšič Pavlič
Program Specialist and thematic area lead

44 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 45
Central Banking
With the learning program
for central banks, we aim to
strengthen institutional capacities
in their efforts to contribute
towards financial stability and
growth, through maintaining a
sound and stable macro-economic
and financial sector environment,
and supporting financial services
and infrastructure, as well as good
governance and their effective
operations.
Given the circumstances, I am happy
that we were able to hold at least one
face-to-face event in 2020, all others
were online. We introduced new topics in our program,
such as financial reporting in central banks,
the reforms of benchmark interest rates, insurance
market supervision, bank recovery and resolution,
and supervisory approach to capital and liquidity
adequacy assessment processes. As a continuation
from the previous year, we delved further into the
practices of integrating climate risks in stress tests.
On top of the planned program, we organized a
webinar on cyber risks as a response to increased
remote work. The webinar was a combination of
guidance and exchange of practical experience by
IT professionals at central banks from the region.
We further developed the scope of banking regulation
and supervision capacity development project
proposal, which we are preparing jointly with
the IMF. We conducted a survey that identified the
needs and narrowed down their scope.
EVENTS
Monetary Policy Implementation in
the Eurosystem (CEF, Slovenia)
Review of Capital and Liquidity
Adequacy Processes
Interest Rate Benchmark Reforms
Financial Reporting to the
Management
Financial Inclusion and Literacy
Oversight of Payment and
Settlement Systems
Cyber-risks of Remote Work During
the Covid-19 Pandemic
Insurance Supervision and Risk
Management
Bank Recovery and Resolution
Integrating Climate Risks in Stress
Testing
PROGRAM DONORS
• Banka Slovenije
• Ministry of Finance, Slovenia
OTHER PROGRAM PARTNERS
• Bank of Albania
• Banque de France
• Central Bank of Armenia
• Central Bank of Montenegro
• CIPFA
• Council on Economic Policies, Switzerland
• De Nederlandsche Bank
• ECB
• Insurance Supervision Agency, Slovenia
• Institute of Macroeconomic Analysis and
Development, Slovenia
• International Monetary Fund
• National Bank of Moldova
• National Bank of the Republic of North Macedonia
• National Bank of Romania
Matija Čarman
Program Specialist and thematic area lead

46 CEF BUSINESS REPORT 2020
LEARNING PROGRAM 47
Data and Analysis
for Designing Policies
One of the objectives of the data
and analysis for designing policies
(DAP) learning program is to promote
the importance of evidence-based
approach to policymaking. Topics
of this cross-cutting thematic area
were tackled also at the events of
Leadership for Managing Reforms
and Budget Preparation and
Execution programs.
EVENTS
Statistics on International Trade in
Goods and Services (CEF, Slovenia)
Tips for Better Economic Policy
Analysis Reporting
Conducting Financial and Expenditure
Analysis in the Public Sector
KNOWLEDGE PRODUCTS
Conducting Financial and Expenditure Analysis
in the Public Sector– Case Study on the Slovak
Republic (online publication)
https://www.cef-see.org/publications
PROGRAM DONORS
• Banka Slovenije
• Ministry of Finance, Slovakia
• Ministry of Finance, Slovenia
OTHER PROGRAM PARTNERS
• Ministry of Finance, the Netherlands
• Institute of Macroeconomic Analysis and
Development, Slovenia
• International Monetary Fund
We support this objective by including experts,
specialized in different analytical
work, at events where different policy measures
are discussed, such as the Managing Financing
and Costing of Pension System Reforms workshop. We
added the perspective of analytical support as one of
the important elements in decision making processes.
We additionally engaged participants in a negotiation
process, while offering them a different level of understanding
of the effects, caused by various pension reform
measures. We also showcased the weight of data
and other aspects in reaching decisions.
Another occasion where we added the DAP perspective
is the broadcasting event Navigating Towards the
New Normal Economy. We brought together representatives
of the private and public sector. This way
we were able to bring forward answers to how they
managed with limited information and data to make
decisions or design policies in pandemic times when
clear information became scarce.
Another very important aspect of DAP is integrating
social learning principles in our activities. At the event
Conducting Financial and Expenditure Analysis in the
Public Sector, we dedicated a whole unit to recognizing
participants as experts and learning from each
other’s experiences.
Nina Agić
Program Officer and thematic area lead

48 CEF BUSINESS REPORT 2020
GOVERNANCE 49
GOVERNANCE
Our governance structure consists of the
Governing Board, the Advisory Board, the
Coordinators, and the Secretariat with
distinct and complementary goals and
responsibilities.
Governing Board
Ministers, Governors and
heads of other relevant
institutions, or their nominated
representatives and up to
three representatives of the
Advisory Board
Decision Making
Body
Advisory Board
Advisory group of experts
from donor and partner
institutions
Advisory
Consultative
Bodies
Coordinators
Representatives of
constituency institutions
responsible for human
capacity development

50 CEF BUSINESS REPORT 2020
GOVERNANCE 51
Governing Board
The Governing Board is the key decision-making body of the
CEF. It steers our work by guiding the strategic directions and
activities of the CEF, reviews progress, annual reports and
financial statements, and deliberates on other relevant issues.
MUGUR ISĂRESCU,
CHAIR OF THE CEF’S GOVERNING BOARD
(JUNE 11, 2020 UNTIL JUNE 8, 2021)
Members of the Governing Board are ministers of finance and/or governors of central
banks from CEF member countries: Albania, Bulgaria, Moldova, Montenegro,
North Macedonia, Romania, and Slovenia. The Governing Board also includes up to
three representatives of the Advisory Board.
2019 CEF GOVERNING BOARD MEETING,
CHIȘ INĂU, MOLDOVA
The Governing Board is currently chaired by Mugur Isârescu, Governor of the National
Bank of Romania. Due to the Covid-19 pandemics, the annual meeting of the CEF
Governing Board was for the first time carried out as a virtual meeting on June 6,
2020, chaired by Radoje Žugić, Governor of the Central Bank of Montenegro. Another
meeting was held through correspondence during September 11–25, 2020.
MEMBERS OF THE CEF GOVERNING BOARD (APRIL 30, 2021)
Anila Denaj, Minister
Gent Sejko, Governor
Kiril Ananiev, Minister
Ministry of Finance, Albania
Bank of Albania
Ministry of Finance, Bulgaria
/ Ministry of Finance, Moldova
Octavian Armaşu, Governor
Milojko Spajić, Minister
Radoje Žugić, Governor
Fatmir Besimi, Minister
Anita Angelovska Bezhoska, Governor
Alexandru Nazare, Minister
Mugur Isărescu, Governor
Andrej Šircelj, Minister
Boštjan Vasle, Governor
Andreja Jerina*
Birger Nerré*
Martin Polónyi*
National Bank of Moldova
Ministry of Finance and Social Welfare, Montenegro
Central Bank of Montenegro
Ministry of Finance, North Macedonia
National Bank of the Republic of North Macedonia
Ministry of Public Finance, Romania
National Bank of Romania
Ministry of Finance, Slovenia
Banka Slovenije
Ministry of Foreign Affairs, Slovenia
Deutsche Gesellschaft fur Internationale
Zusammenarbeit (GIZ)
Ministry of Finance, Slovakia
2020
2020
CEF
CEF
GOVERNING
GOVERNING
BOARD
BOARD
VIRTUAL
VIRTUAL
MEETING
MEETING
* Representatives of the Advisory Board

52 CEF BUSINESS REPORT 2020
GOVERNANCE 53
Advisory Board
OUR PARTNERS
INTERNATIONAL
MONETARY FUND
The CEF is an important
implementor of the Official
Development Aid policy orientation
in Slovenia. It often tops up Slovenian
bilateral efforts. For the future,
we appreciate the CEF’s openness to enhance
their activities in potential new CEF
members, rounding up a multi-country
approach which often proves to be more
efficient than single country efforts. Focusing
on an enabling environment that
is ready for changes and reforms is meaningful
contribution in the Western Balkan
region and its neighbourhood, as it brings
stability and progress. Relevance and mutual
respect create trust – the foundation
for sustainable change.
Andreja Jerina
Chair of the CEF Advisory Board
National Coordinator for EU macroregional
strategies
Ministry of Foreign Affairs, Slovenia
An advisory group of experts from
our donors and partners assists
the CEF Secretariat in designing
and coordinating the delivery of
activities. It provides support by
giving advice on the relevance of the
CEF program for the region.
The Advisory Board has currently three representatives
in the Governing Board from GIZ,
Ministry of Finance, Slovakia and Ministry of
Foreign Affairs, Slovenia. Chair of the Advisory
Board is Andreja Jerina from the Ministry of
Foreign Affairs, Slovenia.
The annual meeting of the Advisory Board was
organized as a virtual meeting on November 5,
2020.
PARTICIPATING INSTITUTIONS
AT THE 2020 ADVISORY BOARD MEETING
• Banka Slovenije
• GIZ
• Ministry of Finance, the Netherlands
• Ministry of Finance, Slovakia
• Ministry of Foreign Affairs, Slovenia
• National Bank of Belgium
The CEF partners with multilateral and
bilateral organizations, knowledge institutions,
and peer organizations. Partners play
a crucial role in the implementation of our
learning program by providing resources,
expertise, learning methodologies or other
relevant tools. Together we create a strong
network and meaningful synergies in supporting
the region in its reform efforts.
We are in touch with our partners regularly.
In 2020, we also managed to informally
meet our partners and service providers
based in Slovenia in person at our traditional
after-New-Year gathering.
For years, we have partnered closely with the IMF. The institutions
signed a Memorandum of Understanding in 2017.
The partnership is complementary. While the CEF provides
a peer-to-peer learning and knowledge sharing program, the
IMF offers country-specific capacity development support to
the countries of SEE. Many of the CEF courses are co-delivered
with the IMF regional advisors for SEE or colleagues
from the IMF headquarters. These joint activities are proof
that learning and technical cooperation can work hand in
hand and promote sustainability of capacity development in
our constituency.
The CEF currently hosts two IMF Fiscal Affairs Department capacity
development advisors for PFM and revenue administration.
Their work in 2020 is highlighted in the Appendix.

54 CEF BUSINESS REPORT 2020
GOVERNANCE 55
The IMF’s Fiscal Affairs Department
(FAD) and the CEF
share a history of close cooperation
that already spans two decades.
This has helped countries in SEE in their
efforts to improve fiscal institutions. In
2020, despite the Covid-19 pandemic,
we continued to work together and deliver
for the benefit of SEE countries. This was
only possible because FAD and CEF activities
quickly shifted to a virtual delivery.
The FAD-CEF cooperation leverages complementarities
between FAD capacity
development which is tailored to specific
countries’ circumstances and the
regionally-based learning opportunities
offered by the CEF. We look forward to
continuing our excellent cooperation in a
fast-changing world that will even more
demanding for public finances.
Vitor Gaspar
Director
Fiscal Affairs Department
International Monetary Fund
PARTNERS’ IN KIND CONTRIBUTIONS
TO OUR PROGRAM
Partners’ contributions in cash are recorded and reported
in the CEF’s financial statements. The in-kind contributions
that are not recorded and reported in the financial
statements are reported in the table below. Several
partner institutions and donors sponsor lecturers (travel
expenses and lecturing fees) for their engagement in
CEF learning activities. For the purpose of this report, a
lecturing day is estimated at EUR 1,000 (including the
preparation time). Travel expenses are estimated to be
EUR 1,500 based on historical data, whereby sending
institutions covered travel expenses in 50% of cases. A
weighted travel lump sum of EUR 750 is hence applied
to all individual expert engagements.
Institution
CEF CONSTITUENCY INSTITUTIONS
TOTAL
days
TOTAL COSTS
EUR
Bank of Albania 32.75 32,7500
Banka Slovenije 10.75 10,750
Bled School of Management (IEDC), Slovenia 0.5 500
Court of Audit, Slovenia 2 2,000
Directorate for Economic Planning, Bosnia and Herzegovina 0.75 750
Institute for Economic Research, Slovenia 1.25 1,250
Institute of Macroeconomic Analysis and Development
(and other government institutions), Slovenia
3.25 3,250
Institute of Social Sciences and Humanities, North Macedonia 0.5 500
Ministry of Finance and Economy, Albania 1.25 1,250
Ministry of Finance and Social Welfare (and other government institutions), Montenegro 0.5 500
Ministry of Finance (and other government institutions), North Macedonia 2.75 2,750
Presidential and Budget Strategy Office (and other government institutions), Turkey 0.75 750
National Bank of Moldova 1.5 1,500
National Bank of Romania 0.75 750
Tax Administration of Kosovo (and other government institutions) 3.75 3,750
Others* 1.75 1,750
OTHER COUNTRIES’ INSTITUTIONS 4.35 4,3500
Banque de France 5 5,000
CIPFA 0.5 500
Massey University School of Accountancy, New Zealand 0.5 500
Ministry of Finance (and other government offices), Georgia 3 3,000
Ministry of Finance (and other government offices), the Netherlands 29.25 29,250
Customs and Tax Administration, Denmark 3.5 3,500
Others** 1.75 1,750
AFFILIATED AND EXTERNAL EXPERTS 8.75 8,750
EU INSTITUTIONS AND INTERNATIONAL ORGANIZATIONS 34.25 34.250
European Commission and Delegations of the EU in SEE 7.75 7,750
IMF 21.25 21,250
OECD 0.5 500
ECB 2 2,000
The World Bank Group and PEFA 2.25 2,250
UNESCO-IIEP 0.5 500
TOTAL ALL 119.25 119,250
* State Supreme Audit, Albania; Central Bank of Montenegro; Ss. Cyril and Methodius University, North Macedonia; National Bank of the Republic of
North Macedonia; Ministry of Finance, Serbia; Tax Administration, Bulgaria.
** Central Bank of Armenia, Council of Economic Policy, Switzerland, Parliamentary Budget Office Austria, National Bank of Belgium, Government of
the Brussels Region, Belgium; De Nederlandsche Bank, the Netherlands; Financial Administration Academy, Slovakia; NIRAS, Ukraine; Kennedy
School, Harvard University, USA.

56 CEF BUSINESS REPORT 2020
GOVERNANCE 57
CEF COORDINATORS
IN CORONA TIMES
At the beginning, it was all very strange…
I started to work from home. At the same
time, I had to take care of my kids, all under
one roof. Thanks to our committed
HR team, we successfully responded to
the increased and extended activities in
our department.
However, there was more time for family
discussions and joint activities, and
making plans for the future. I also noticed
that in these strange times, humor
helps people cope with stress and
achieve inner peace.
Aleksandra Kacarski
National Bank of the Republic
of North Macedonia
CEF Coordinator
Read more about the “corona
impressions” from our Coordinators and
their institutions
https://centerofexcellenceinfinance.
exposure.co/cef-coordinator-interviews
Coordinators
Coordinators are appointed
representatives of our
constituency’s ministries
of finance, central banks
and tax administrations
that are responsible for
capacity development and
strategic human resources
management in their
institutions. They help us
identify learning needs and
trends in the region.
The Coordinators meet biennially. In
2020, we were scheduled to convene in
Romania, however, Covid-19 forced us to
instead organize a series of virtual meetings
that addressed pressing issues.
EVENTS
Personal and Institutional
Resilience in Times of Crisis
Communication in Times of
Crisis
Leadership in Times of Crisis
Organizational Learning in
Times of Crisis
CEF COORDINATORS (AS AT APRIL 30, 2021)
Vasilika Vjero
Ministry of Finance and Economy, Albania
Gramoz Kolasi
Bank of Albania
Eriola Sada
General Taxation Directorate, Albania
Sehija Mujkanović
Ministry of Finance and Treasury, Bosnia and Herzegovina
Enes Kurtović
Central Bank of Bosnia and Herzegovina
Denisa Seho
Indirect Taxation Authority of Bosnia and Herzegovina
Amela Kazazić
Tax Administration of the Federation of Bosnia and Herzegovina
Sandra Kovačević
Tax Administration of Republic of Srpska, Bosnia and Herzegovina
Galina Tzekova
Ministry of Finance, Bulgaria
Stoyan Bozhkov
Bulgarian National Bank
Boryana Yankova-Sharkova National Revenue Agency, Bulgaria
Andrea Kocelj
Ministry of Finance, Croatia
Marija Lončar
Ministry of Finance, Tax Administration, Croatia
Orhan Devaja
Ministry of Finance, Kosovo
Syzana Mahmutaj
Central Bank of the Republic of Kosovo
Floransa Sahiti
Tax Administration of Kosovo
Tatiana Onici
Ministry of Finance, Moldova
Natalia Zabolotnii
National Bank of Moldova
Silvia Caitaz
State Tax Service, Moldova
Aleksandra Marković
Ministry of Finance and Social Welfare, Montenegro
Ana Šćepanović
Central Bank of Montenegro
Lidija Šećković
Tax Administration of Montenegro
Jordan Trajkovski
Ministry of Finance, North Macedonia
Aleksandra Kacarski
National Bank of the Republic of North Macedonia
Marjan Mihajlovski
Public Revenue Office, North Macedonia
Mugur Tolici
National Bank of Romania
Iulia-Mihaela Barbieru National Agency for Fiscal Administration, Romania
Bojana Drobnjak
National Bank of Serbia
Snezana Ilić
Tax Administration, Serbia
Sanja Pregl
Banka Slovenije
Nataša Marušič Kuhar Financial Administration of the Republic of Slovenia
Taşkın Babaoğlan
Presidency of Strategy and Budget, Turkey
Süleyman Kutalmış Özcan Central Bank of the Republic of Turkey
Ministries of finance of Romania, Slovenia and Serbia had no coordinators appointed at the time of printing this Annual Report.

58 CEF BUSINESS REPORT 2020
GOVERNANCE 59
The CEF and its Coordinators meet every two years to exchange
ideas and good practices in learning, and to discuss how they
could be part of the CEF learning and networking program.
In 2020, we could not meet in Bucharest due to the pandemic.
Instead, we transformed our meeting into a series
of virtual sessions, delivered in cooperation with the Coordinators
as co-designers, working closely also with other
experts. We also offered other participants from the CEF
constituency to attend these virtual sessions. Additionally,
we invited another group closely related to the CEF to
join the sessions - the Coordinators of the ERPs, our main
partners in the implementation of the EU project FISR.
Here is the journey of four virtual sessions replacing the
CEF Coordinators meeting:
• Personal and Institutional Resilience in Times of Crisis
• Communication in Times of Crisis
• Leadership in Times of Crisis
• Organizational Learning in Times of Crisis
Coordinators’ Meeting 2020
A SERIES OF FOUR ONLINE SESSIONS

60 CEF BUSINESS REPORT 2020
GOVERNANCE 61
Secretariat
Our day-to-day activities are carried out by the
director, experts and staff that comprise the CEF
Secretariat.
At the end of 2020, there were 33 members of the CEF Secretariat.
The CEF team is international in character and diverse, with members
from Albania, Georgia, Germany, North Macedonia, Serbia, Slovenia
and Turkey. We speak most of the languages of our region.
We have also included nine affiliated experts in the delivery of
the learning and knowledge sharing program. In addition, two IMF
regional capacity development advisors and their interpreter work
at the CEF.
CEF CORE VALUES
In our work we follow core values that we have defined together.
TRUST: We trust ourselves and each other in our
goal to deliver high-quality programs, support regional
cooperation, and work effectively with our
partners.
TEAM SPIRIT: We respect, accept and support
each other in combining our diverse roles and
capacities.
FOCUS ON RESULTS: We set clear and measurable
goals with specific action plans and efficient
use of resources, while also considering
staff interests and capabilities.
ACCOUNTABILITY: By aligning our personal integrity
with clear organizational expectations,
we take responsibility for what we do, how we
do it and how this affects the world around us.
OPPORTUNITY TO GROW: We are committed
to support an environment where we grow as
individuals and team(s).

62 CEF BUSINESS REPORT 2020
GOVERNANCE 63
SUSTAINABILITY, CORPORATE RESPONSIBILITY
AND WELL-BEING
The CEF’s team is highly commitment to apply environmental and social sustainability
and to be good stewards of the environment and the social landscapes in
which we operate. We see all these practices as value creators in our work.
Although the Covid-19 pandemic has brought many challenges to work and life, it
also presented an opportunity for improving sustainable practices. As a result of
all our business being conducted online, we became fully digitalized.
Despite the difficult circumstances, we still found a way to put social responsibility
to practice. We organized many activities to improve the well-being of others as
well as our team members. Here are some of the highlights.
Local initiatives:
• blood donation
• two donations to a safe house for women and children (clothes, toys)
• participating in the Donate a Notebook project (gathering school supplies for
children whose parents can’t afford to buy them)
• supporting the Movember and Pink October movements
• computer donation to a pupil
Internal initiatives:
• gift certificate for books as the CEF’s 2020 New Year’s gift to staff
• delivering appreciation packages to staff members’ homes (protection masks,
feel-good gifts)
• establishing a group for stress release (one hour a week)
• travel the distance from Ljubljana to Tirana (and back) by counting the
kilometers of walking, running, cycling, hiking and swimming by staff during
the lockdown
We also cultivate a learning and knowledge sharing culture promoted by all staff
members. We regularly attend external trainings, conferences and other learning
opportunities. Every two weeks, we exchange experience internally or invite
guests from other organizations to explore new horizons. In 2020, we organized
17 such events, delivered as internal knowledge sharing sessions, external knowledge
sharing sessions or team retreats.
We also promote healthy work-life balance by offering several health-promoting
opportunities. Due to the health measures taken because of Covid-19, many of
them were put on hold in 2020, but we will resume with these activities as soon
as circumstances allow it.
We promote positive organizational culture. Besides nurturing general well-being
and personal development, we also regularly as an organization take part in
surveys that measure the quality of the relationship between the employees and
their organization.

64 CEF FINANCIAL REPORT 2020
FINANCIAL STATEMENTS 65
FINANCIAL
REPORT
Responsibility
for the financial statements
The Management is responsible for ensuring that the financial statements
are prepared for each financial period in accordance with the International
Financial Reporting Standards (IFRS), which give a true and fair view of the
state of affairs and results of the CEF.
After making enquiries, the Management has a reasonable expectation that
the CEF has adequate resources to continue in operational existence for the
foreseeable future. For this reason, the Management continues to adopt the
going concern basis in preparing the consolidated financial statements.
In preparing those financial statements, the responsibilities of Management
include ensuring that:
• suitable accounting policies are selected and then applied consistently
• judgments and estimates are reasonable and prudent
• applicable accounting standards are followed, subject to any material departures
disclosed and explained in the consolidated financial statements
and
• the financial statements are prepared on the going concern basis.
Management is responsible for keeping proper accounting records, which
disclose with reasonable accuracy at any time, the financial position of the
CEF and its financial performance. The Management is also responsible for
safeguarding the assets of the CEF, and hence, for taking reasonable steps
for the prevention and detection of fraud and other irregularities.

66 CEF FINANCIAL REPORT 2020
FINANCIAL STATEMENTS 67
1. Financial Statements
1.1. STATEMENT OF FINANCIAL POSITION 1.2. STATEMENT OF PROFIT OR LOSS
Items
Note
December
31, 2020
EUR
December
31, 2019
Non-current assets 696,803 590,954
Intangible assets 1 34,154 43,469
Property, plant and equipment 2 662,649 547,486
Current assets 2,357,657 1,942,827
Trade receivables 3 75,508 93,020
Cash and cash equivalents 4 2,282,149 1,849,806
Prepayments and other assets 5 47,543 119,113
TOTAL ASSETS 3,102,004 2,652,894
Equity 1,409,949 1,300,795
Share capital (Founder's funds) 6 4,173 4,173
Capital surplus 6 225 225
Fair value reserve 6 -38,491 -22,570
General reserves 6 1,444,042 1,318,967
EUR
EUR
Items Note 2020 2019
Revenue from program 11 2,338,116 2,737,684
Other revenue 679 2,308
Total revenue 2,338,795 2,739,992
Cost of materials 13 57,957 85,369
Cost of services 14 636,754 1,135,161
Labor costs 15 1,438,499 1,305,563
Depreciation and amortization costs 16 69,846 62,603
Other operating costs 17 13,219 17,677
Other expenses 19 0 1,724
Total expenses 2,216,275 2,608,098
Financial income 12 5,479 299
Financial costs 18 2,924 3,398
Annual result 125,075 128,794
Provisions and long-term accrued costs and deferred revenue 926,171 785,231
Provisions 7 229,277 194,185
Long-term accrued costs and deferred revenue 8 696,895 591,046
Operating liabilities 146,732 213,038
Trade payables 9 16,847 64,490
Liabilities to employees 9 125,661 121,588
Other short-term payables 9 4,223 26,960
Advances payable and other current liabilities 10 619,151 353,829
TOTAL EQUITY AND LIABILITIES 3,102,004 2,652,894
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.
1.3. STATEMENT OF OTHER COMPREHENSIVE INCOME
Comprehensive income 2020 2019
Excess of revenues over expenses 125,075 128,794
Other comprehensive income
Actuarial gains (losses) -15,920 -22,570
Other comprehensive income for the period -15,920 -22,570
Total comprehensive income (loss) for the period 109,155 106,224
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.
EUR
EUR

68 CEF FINANCIAL REPORT 2020
FINANCIAL STATEMENTS 69
1.4. CASH FLOW STATEMENT
1.5. STATEMENT OF CHANGES IN EQUITY
EUR
Items 2020 2019
Cash flows from operating activities
Annual result 2,338,795 2,739,992
Total expenses -2,216,275 -2,608,098
Adjustments for
Amortization and depreciation 69,846 62,603
Actuarial gains (losses) -15,920 -22,570
Write-downs of property, plant and equipment 0 92
Financial income 2,560 96
Financial costs -2,924 -3,398
Operating profit before changes in net current assets and taxes 176,082 168,716
YEAR 2020
Items
Share capital
(Founder’s
funds)
Capital
surplus
Fair
value
reserves
General
reserves
EUR
Total
equity
Opening balance as of January 1, 2020 4,173 225 -22,570 1,318,967 1,300,795
Entry of additional capital payments 0 0 0 0 0
Total comprehensive income (loss)
for the period
Other components of the comprehensive
income for the reporting period
0 0 -15,920 125,075 109,155
0 0 -15,920 0 -15,920
Annual result 0 0 0 125,075 125,075
Closing balance as of December 31, 2020 4,173 225 -38,491 1,444,042 1,409,949
Changes in net current assets and provisions
Change in receivables 17,513 44,062
Change in prepayments and other assets 71,570 -44,211
Change in operating liabilities -66,306 73,553
Change in provisions 140,940 168,192
Change in advances payable and other current liabilities 265,321 -961,114
Net cash flow from operating activities 605,120 -550,801
Cash flow from investing activities
Interest received 2,919 203
Acquisitions of property plant and equipment -175,695 -176,304
Net cash flow from investing activities -172,776 -176,101
Cash flow from financing activities
Interest paid 0 0
Net cash flow from financing activities 0 0
Cash and cash equivalents at the beginning of period 1,849,806 2,576,709
YEAR 2019
Items
Share capital
(Founder’s
funds)
Capital
surplus
Fair
value
reserves
General
reserves
EUR
Total
equity
Opening balance as of January 1, 2019 4,173 225 0 1,190,172 1,194,570
Entry of additional capital payments 0 0 0 0 0
Total comprehensive income (loss)
for the period 0 0 -22,570 128,794 106,224
Other components of the comprehensive
income for the reporting period 0 0 -22,570 0 -22,570
Annual result 0 0 0 128,794 128,794
Closing balance as of December 31, 2019 4,173 225 -22,570 1,318,966 1,300,794
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.
Net increase in cash and cash equivalents 432,343 -726,902
Cash and cash equivalents at the end of period 2,282,149 1,849,806
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.

70 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 71
2. Introductory notes and accounting policies
2.1. REPORTING ENTITY
The reporting organization Center of Excellence in Finance (CEF) is based in Slovenia. Its registered
office is at Cankarjeva 18, SI-1000 Ljubljana, Slovenia.
The CEF supports capacity development for finance officials in SEE through learning. Its core activities
include developing, designing and implementing learning events and knowledge products
in the areas of public financial management, tax policy and administration, central banking, data
analysis for designing policies and leadership for managing reforms.
The financial statements of the CEF were prepared for the business year that ended on December
31, 2020.
2.2. BASIS FOR PREPARATION
(A) STATEMENT OF COMPLIANCE. The financial statements were prepared in accordance with
the International Financial Reporting Standards (IFRS) as adopted by the EU and the provisions
of the CEF Internal Rules.
The financial statements were approved by the CEF Director on May 5, 2021.
The financial statements were compiled in accordance with the assumption of ongoing concern.
The CEF’s work is not influenced by seasons; however, the financial result depends on the number
and duration of approved projects. COVID-19 did not affect implementation of the program in
quantity. Program that was planned to be delivered in classrooms was delivered online.
(B) MEASUREMENT BASIS. The financial statements were compiled on a historical cost basis.
(C) FUNCTIONAL AND PRESENTATION CURRENCY. The financial statements are expressed in
euros, the CEF’s functional currency. All accounting data presented in euros are rounded to the
nearest integer.
(D) REPORTING PERIOD. The CEF’s financial year equals the calendar year.
(E) USE OF ESTIMATES AND JUDGMENTS. When preparing the financial statements, the CEF’s
management is required to make judgments, estimates and assumptions that affect the application
of accounting policies and the reported values of assets, liabilities, revenues and expenses
in accordance with the IFRS. Actual results may vary from these estimates.
The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised and in any future periods
affected. Estimates and assumptions are mainly associated with: estimated useful lives of
amortizable assets, asset impairment, employee earnings, provisions, and contingent liabilities.
2.3. SIGNIFICANT ACCOUNTING POLICIES
The CEF has consistently applied the accounting policies to all periods presented in its financial
statements.
(A) FOREIGN CURRENCY
Foreign currency transactions
Foreign currency transactions are converted into the functional currency of the CEF using the
exchange rate applied on the day they arise. Cash, cash equivalents and liabilities denominated
in foreign currencies are converted into the functional currency using the exchange rate applicable
at the end of the reporting period. Positive or negative exchange differences are differences
between the amortized cost in the functional currency at the beginning of the period, increased
or decreased by the amount of applicable interest and payments in the period, and the amortized
cost expressed in foreign currency, converted using the exchange rate at the end of the period.
Exchange rate differences are recognized in the income statement.
The ECB’s reference exchange rates and the monthly exchange rates of Banka Slovenije for currencies
for which the ECB does not publish reference exchange rates are used to convert receivables
denominated in foreign currencies.
(B) FINANCIAL INSTRUMENTS
Non-derivative financial assets
Receivables and deposits are initially recognized on the day they arise. Financial assets are
derecognized when the contractual rights to cash flows from these assets expire, or when the
CEF transfers the rights to cash flows from financial assets based on a transaction that involves
the transfer of all risks and benefits associated with the ownership of the financial asset.
Depending on their maturity, they are classified as current financial assets (maturity of up to 12
months from the date of the statement of financial position) or non-current financial assets (maturity
of more than 12 months from the date of the statement of financial position). Deposits and
receivables are recognized initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, they are measured at amortized cost using the effective interest
method, less any impairment losses.
Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
not quoted on an active market. They are initially recognized at fair value and increased by any direct
transaction costs. After initial recognition, loans and receivables are measured at amortized
cost using the effective interest rate method, less any impairment losses. Loans and receivables
include operating and other receivables.
The CEF does not invest in non-derivative financial assets with fixed or determinable payments.
The CEF checks the materiality of disclosed receivables at least once a year. Receivables, for
which there exists the possibility that they will not be settled in part (or not at all) within 180 days
of maturity, are generally deemed as doubtful. The CEF creates an allowance for doubtful and
disputed receivables in an amount equal to 100%, which is charged to revaluation expenses. CEF
did not make material changes to impairment policy for undue receivables as IFRS 9 requires, as
the effects are immaterial.

72 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 73
Cash and cash equivalents
Cash and cash equivalents include cash in hand and sight deposits.
Financial and operating liabilities
Other financial and operating liabilities are initially recognized at fair value on the day they arise,
and afterwards at amortized cost, using the effective interest rate method.
Liabilities are only derecognized if they have been extinguished, meaning that they have been
fulfilled. The difference between the carrying amount of liabilities that have been extinguished
and the consideration paid (including non-monetary assets or assumed liabilities) is recognized
immediately in the profit or loss account.
Share capital (Founder’s funds)
Share capital is the capital contributed by the founder. The CEF’s total equity comprises capital
and capital surplus.
General reserves
As envisaged in Article 17 of the CEF Financial Rules and Regulations, general reserves are created
to cover the annual running costs of the CEF and its core program and shall amount at least
to the total sum of one million euro. Financial result of the year shall be transferred to the general
reserves, unless otherwise decided by the Governing Board.
(C) PROPERTY, PLANT AND EQUIPMENT
Recognition and measurement
Items of property, plant and equipment are disclosed at historical cost, less depreciation costs
and impairment losses.
Costs of assets produced comprise the costs of materials, direct costs of labor, other costs that
can be directly attributed to enabling the use of assets for their intended purpose, costs of disposal
and removal, costs of restoring the location of the asset to its original state, and capitalized
borrowing costs.
Any computer software that contributes significantly to the assets’ functionality should be capitalized
as part of these assets.
Components of items of property, plant and equipment that have different useful lives are accounted
for as separate items.
Subsequent costs
Costs arising from the replacement of parts of fixed assets are recognized at carrying value if
future economic benefits associated with a part are likely to increase and if its historical cost can
be measured reliably. All other costs (such as daily maintenance) are recognized as expenses in
the income statement in the period they arise.
Spare parts
Spare parts and maintenance equipment of lower value with useful lives of up to one year are
treated as inventory and recognized as costs in the income statement. Spare parts and equipment
of significant value with estimated useful lives exceeding one year are recognized as items
of property, plant and equipment.
Depreciation
Depreciation is calculated using the straight-line method based on the useful life of each component
of an item of property, plant and equipment. This is the most accurate method for predicting
asset usage patterns.
Estimated useful lives for the current and comparative period are as follows:
Depreciation rates 2020 2019
Computer equipment, mobile phone, copy machine 2–3 years 2–3 years
Investment in premises 33 years 33 years
Other equipment 3–5 years 3–5 years
Depreciation methods, useful lives and residual values are reviewed at the end of the reporting
period and adjusted if necessary. No changes in recording depreciation were applied in 2020.
(D) INTANGIBLE ASSETS
Other intangible assets
Other intangible assets with limited useful lives are disclosed at historical cost, less amortization
costs and accumulated impairment losses.
Subsequent costs
Subsequent costs associated with intangible assets are only capitalized if they increase future
economic benefits arising from the asset to which the cost is related. All other costs are recognized
as expenses in the income statement when they arise.
Amortization
Amortization is calculated based on an asset’s purchase value or another value that is used
instead. Amortization is recognized in the income statement using the straight-line method and
is based on the useful life of intangible assets, starting from the date the asset is available for
use. This is the most accurate method for predicting the patterns of future economic benefits
associated with the asset.
Estimated useful lives for the current and comparative year are as follows:
Amortization rates 2020 2019
Software 2–3 years 2–3 years
Other intangible assets 2–3 years 2–3 years
Amortization methods, useful lives and other values are reviewed at the end of each business
year and adjusted if necessary. No changes in recording amortization were applied in 2020.

74 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 75
(E) SHORT-TERM DEFERRED COSTS AND ACCRUED REVENUE
Costs that will occur in the next financial year, but were already paid in the financial year, are
recorded as short-term deferred costs.
Short-term accrued revenues are revenues where costs occurred in the financial period but the
formal report and reimbursement request will be submitted to the donor in the next financial year.
(F) EMPLOYEE EARNINGS
Liabilities from short-term employee earnings are measured on an undiscounted basis and are
recognized as expenses as soon as the work is performed by an employee and comprise basic
gross salary, allowances, and benefits.
(G) SHORT-TERM ACCRUED COSTS AND DEFERRED REVENUE
The CEF records short-term deferred revenues for revenues from projects that were received in
the financial year (as advance payments) for deliverables due in the next financial year.
The CEF reports short-term accrued costs for materials and services that were delivered in the
financial year, but for which invoices will be received in the next financial year.
(I) REVENUE
Revenue is recognized as follows:
For long-term projects, the revenue from services rendered is recognized based on the stage of
completion as at the balance sheet date. Under this method, the revenue is recognized in the
accounting period in which the services are rendered.
Grants
All types of grants are recognized in the financial statements when the CEF submits a report
and/or issues a reimbursement request or a payment request. In addition, they are recognized in
deferred revenues when the work was done but the report was not submitted by the end of the
financial year.
Deferred/accrued revenues and expenses
The CEF records in short-term deferred revenues advance payments received for projects with
expected deliverables in the next financial year. Short-term accrued revenues comprise revenues
generated from activities delivered in the financial year that will be reported and paid for in the
next financial year.
The CEF records in short-term deferred costs expenses that were paid in the financial year (such
as advance payments) that will occur in the next financial year, and in short-term accrued costs
expenses in the financial year for which invoices have not yet arrived.
(H) PROVISIONS
Provisions are recognized for legal or constructive obligation as a result of a past event that can
be measured reliably, and it is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by discounting expected future cash flows at a
pre-tax rate that reflects current market assessments of the time value of money, and—where
appropriate—the risks specific to the liability.
Provisions for severance payments and long-service bonuses
Pursuant to the internal rules, the CEF is obliged to pay long-service bonuses and severance
payments to employees and has created long-term provisions for this purpose. There are no other
obligations relating to pensions. Provisions are created in the amount of estimated future severance
payments and long-service bonuses, discounted at the end of the reporting period.
The CEF created non-current provisions in 2018 for long-service bonuses and severance payments
at retirement as the present value of future payments required to settle liabilities arising
from employees’ service in the current and future periods, taking into account the costs of severance
payments at retirement and the costs of all expected long-service bonuses until retirement.
A discount rate of 0,724% was set for the calculation on December 31, 2020 based on the yields
on 15-year corporate bonds with high credit rating in the euro area. The calculation was prepared
by an outsourced actuary.
Labor costs and interest expenses are recognized in the income statement, while recalculated
post-employment benefits and unrealized actuarial gains or losses from severance pay are recognized
as an equity item in other comprehensive income.
(J) FINANCIAL INCOME AND FINANCIAL EXPENSES
Financial income includes interest from deposits and positive exchange rate differences.
Financial expenses include negative exchange rate differences.
(K) INITIAL APPLICATION OF NEW AMENDMENTS TO THE EXISTING STANDARDS
EFFECTIVE FOR THE CURRENT REPORTING PERIOD
The following new standards, amendments to the existing standards and interpretation issued by
the International Accounting Standards Board (IASB) are effective for the current reporting period:
• Amendments to IFRS 3 “Business Combinations” - Definition of a Business (effective for business
combinations for which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after January 1, 2020 and to asset acquisitions that occur on
or after the beginning of that period).
• Amendments to IFRS 9 “Financial Instruments”, IAS 39 “Financial Instruments: Recognition
and Measurement” and IFRS 7 “Financial Instruments: Disclosures” - Interest Rate Benchmark
Reform (effective for annual periods beginning on or after January 1, 2020),
• Amendments to IAS 1 “Presentation of Financial Statements” and IAS 8 “Accounting Policies,
Changes in Accounting Estimates and Errors” - Definition of Material (effective for annual periods
beginning on or after January 1, 2020),
• Amendments to References to the Conceptual Framework in IFRS Standards (effective for
annual periods beginning on or after January 1, 2020).

76 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 77
The adoption of these new standards, amendments to the existing standards and interpretation
has not led to any material changes in the CEF’s financial statements.
3. Notes to the financial statements
(L) STANDARDS AND INTERPRETATIONS ISSUED BY THE IASB BUT NOT YET EFFECTIVE
At the date of authorization of these financial statements, the following new standards, amendments
to existing standards and new interpretation were in issue, but not yet effective:
• IFRS 17 “Insurance Contracts” including amendments to IFRS 17 (effective for annual periods
beginning on or after January 1, 2023),
• Amendments to IFRS 3 “Business Combinations” - Reference to the Conceptual Framework
with amendments to IFRS 3 (effective for annual periods beginning on or after January 1,
2022),
• Amendments to IFRS 4 “Insurance Contracts” – Extension of the Temporary Exemption from
Applying IFRS 9 (the expiry date for the temporary exemption from IFRS 9 was extended to
annual periods beginning on or after January 1, 2023),
• Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in
Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture and further amendments (effective date deferred indefinitely until
the research project on the equity method has been concluded),
• Amendments to IFRS 16 “Leases” - Covid-19-Related Rent Concessions (effective for annual
periods beginning on or after June 1, 2020. Earlier application is permitted, including in financial
statements not yet authorized for issue at May 28, 2020. The amendment is also available
for interim reports.),*
• Amendments to IAS 1 “Presentation of Financial Statements” - Classification of Liabilities as
Current or Non-Current (effective for annual periods beginning on or after January 1, 2023),
• Amendments to IAS 16 “Property, Plant and Equipment” - Proceeds before Intended Use (effective
for annual periods beginning on or after January 1, 2022),
• Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” - Onerous
Contracts — Cost of Fulfilling a Contract (effective for annual periods beginning on or after January
1, 2022).
The CEF has elected not to adopt these new standards, amendments to existing standards and
new interpretation in advance of their effective dates. The CEF anticipates that the adoption of
these standards, amendments to existing standards and new interpretations will have no material
impact on the financial statements of the CEF in the period of initial application.
NOTE 1: INTANGIBLE ASSETS
Intangible assets
January 1,
2020
New
investments Write-offs Amortization
EUR
December 31,
2020
Purchase value 57,816 0 0 0 57,816
Accumulated amortization -14,347 0 0 -9,315 -23,662
Carrying value 43,469 0 0 -9,315 34,154
Intangible assets
January 1,
2019
New
investments Write-offs Amortization
December 31,
2019
Purchase value 17,282 46,574 -6,040 0 57,816
Accumulated amortization -17,276 0 6,040 -3,110 -14,347
Carrying value 5 46,574 0 -3,110 43,469
Intangible assets comprise computer software and textbooks for TIAPS program and are recorded at purchase value. A
change in position results from investment and amortization. In 2020 CEF didn’t have investments in intangible assets.
NOTE 2: EQUIPMENT
Equipment
January 1,
2020
New
investments Write-offs Amortization
EUR
December 31,
2020
Purchase value 1,136,931 175,695 0 0 1,312,627
Accumulated depreciation -589,446 0 0 -60,532 -649,977
Carrying value 547,486 175,695 0 -60,532 662,649
Equipment
January 1,
2019
New
investments Write-offs Amortization
December 31,
2019
Purchase value 1,068,826 129,730 -61,625 0 1,136,931
Accumulated depreciation -591,486 0 61,533 -59,493 -589,446
Carrying value 477,340 129,730 -92 -59,493 547,486
Equipment owned by the CEF is used to carry out the CEF’s activities and comprises office, computer and other
equipment, as well as investments and improvements in the business premises. A change in the position results
from purchases, write-offs and accumulated depreciation. Write-offs relate to the equipment that is no longer in use.

78 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 79
New investments in 2020 comprise electronic equipment (computers, printers, projectors), renovation of lobby, and
some offices on the ground floor and in the 4th floor. The CEF’s equipment is not pledged. Liabilities for purchase of
equipment as of December 31, 2020 amount to EUR 6,405 and in amount to EUR 4,321 as of December 31, 2019.
NOTE 4: CASH AND CASH EQUIVALENTS
EUR
Cash and cash equivalents December 31, 2020 December 31, 2019
NOTE 3: TRADE RECEIVABLES
Trade receivables December 31, 2020 December 31, 2019
Banka Slovenije 0 1,368
IMF 38,766 53,665
Other receivables 36,742 37,988
Total 75,508 93,020
Trade receivables comprise claims from projects and other receivables from original documents and without any
valuation adjustment.
Trade receivables are non-interest bearing. The method of impairment did not change in 2020.
Trade receivables change from year to year depending on the life cycle of a project run by the CEF.
Other receivables comprise VAT refunds and social security refunds.
EUR
Cash and deposits in EUR 2,279,963 1,849,283
Cash and deposits in USD 1,862 168
Cash in hand 324 356
Total 2,282,149 1,849,806
Cash and cash equivalents comprise short-term deposits in EUR and USD with UniCredit Bank, Ljubljana.
NOTE 5: PREPAYMENTS AND OTHER ASSETS
EUR
Prepayments and other assets January 1, 2020 Disbursement Increases December 31, 2020
Accrued revenue (not yet invoiced) 93,078 -93,078 0 0
Advance payments 4,339 -4,339 23,124 23,124
Deferred costs 21,696 -1,356 4,079 24,419
Total 119,113 -98,773 27,203 47,543
Age structure and changes in impairments of receivables
EUR
December 31, 2020 December 31, 2019
Aging of receivables Gross amount Impairments Gross amount Impairments
Not past due 75,508 0 93,020 0
Past due up to 90 days 0 0 0 0
Past due from 91 to 180 days 0 0 0 0
Past due from 181 to 365 days 0 0 0 0
Prepayments and other assets January 1, 2019 Disbursement Increases December 31, 2019
Accrued revenue (not yet invoiced) 7,876 -7,876 93,079 93,078
Advance payments 360 -360 4,339 4,339
Deferred costs 66,667 -44,971 0 21,696
Total 74,902 -53,207 97,417 119,113
Short-term deferred costs and accrued revenue comprise accrued income and costs that were paid in 2020 and will
occur in 2021, such as insurance premiums.
More than one year 0 0 0 0
Total 75,508 0 93,020 0

80 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 81
NOTE 6: EQUITY
Equity (Founder’s funds) December 31, 2020 December 31, 2019
Share capital (Founder's funds) 4,173 4,173
Capital surplus 225 225
Fair value reserves -38,491 -22,570
General reserves 1,444,042 1,318,967
Total 1,409,949 1,300,795
Share capital represents start-up contribution in the amount of EUR 4,173 and capital surplus.
The surplus generated in 2020 was allocated to the general reserve fund (as envisaged in the internal rules of the CEF).
Fair value reserves from actuarial calculations of severance pay were negative in the amount of EUR 38,491 at the
end of 2020.
EUR
NOTE 8: GOVERNMENT GRANTS
Long-term accrued costs
and deferred revenue
January
1, 2020
New
investments
Write
offs
Amortization
and
depreciation
EUR
December
31, 2020
Fund to finance amortization and depreciation 591,046 175,695 0 -69,846 696,895
Carrying value 696,895
Long-term accrued costs
and deferred revenue
January
1, 2019
New
investments
Write
offs
Amortization
and
depreciation
EUR
December
31, 2019
Fund to finance amortization and depreciation 477,345 176,304 0 -62,603 591,046
Carrying value 591,046
Government grants are covering the depreciation and amortization of long-term assets.
NOTE 7: PROVISIONS
Provisions January 1, 2020 Disbursement Increase December 31, 2020
Reserves for severance pay 157,808 0 35,092 192,900
Other provisions 36,377 0 0 36,377
Total 194,185 0 35,092 229,277
Provisions January 1, 2019 Disbursement Increase December 31, 2019
Reserves for severance pay 109,693 -9,003 57,118 157,808
Other provisions 30,000 -38,623 45,000 36,377
Total 139,693 -47,626 102,118 194,185
The CEF created provisions for severance payments and long-service bonuses based on the current value of its liabilities
to employees (see also Note 16).
The reserves for textbooks were created as CEF received some funds that were specifically dedicated to prepare
textbooks for TIAPS program. Textbooks for Level 1 were finalized in 2019 (see also Note 1). Textbooks for Level 2 are
being prepared to be put in use in the future. The CEF will need to keep these textbooks updated, so funds will be
reserved for this also in the future.
EUR
EUR
NOTE 9: OPERATING LIABILITIES
Operating liabilities December 31, 2020 December 31, 2019
Trade payables to suppliers in Slovenia 15,435 51,337
Trade payables to suppliers outside Slovenia 1,412 13,153
Liabilities to employees 125,661 121,588
Other short-term liabilities 4,223 26,960
Total 146,732 213,038
Operating liabilities comprise accounts payable (short-term trade payables to suppliers of goods and services, including
maintenance services), liabilities to employees (December salary), and other short-term liabilities (other taxes and
lecturers’ fees).
NOTE 10: ADVANCES PAYABLE AND OTHER CURRENT LIABILITIES
Advances payable and
other current liabilities January 1, 2020 Disbursement Increases December 31, 2020
Deferred revenues for projects 302,731 -302,731 385,241 385,241
Other accrued costs 51,098 -51,098 233,910 233,910
Total 353,829 -353,829 619,151 619,151
EUR
EUR

82 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 83
Advances payable and
other current liabilities January 1, 2019 Disbursement Increases December 31, 2019
Deferred revenues for projects 1,254,560 -1,265,494 313,665 302,731
Other accrued costs 60,382 -60,382 51,098 51,098
Total 1,314,942 -1,325,876 364,763 353,829
Contract liabilities represent revenues received in 2020 for costs that will occur in 2021; EUR 385,241 for the FISR
project, financed by EU.
Other accrued costs relate to auditing services, cost of renovation of premises and costs of unused annual leave days
that were allocated to the staff for the year 2020 and are to be used by August 31, 2021.
NOTE 11: REVENUE FROM PROGRAM
Revenue from program in 2020 Project Invoiced
From/To
accrued
revenue
From/To
deferred
revenue
EUR
Net
amount
Ministry of Finance, Slovenia Program 2020 1,000,000 0 0 1,000,000
Ministry of Foreign Affairs, Slovenia PACT N. Macedonia 199,910 0 0 199,910
Ministry of Foreign Affairs, Slovenia TIAPS Montenegro 48,277 0 0 48,277
Ministry of Foreign Affairs, Slovenia PACT Montenegro 34,744 0 0 34,744
Ministry of Finance, the Netherlands
Ministry of Finance, Slovakia
Tax Administration,
PIFC
PACT Montenegro,
FISR Moldova
103,182 0 0 103,182
130,110 0 0 130,110
Banka Slovenije CB workshops (MFE*) 213,450 0 0 213,450
EU FISR 566,811 0 0 566,811
GIZ TIAPS Georgia 72,293 0 0 72,293
IMF Workshops 42,464 0 0 42,464
World Bank Workshops 32,724 0 0 32,724
Total 2,443,965 0 0 2,443,965
To provisions to finance
amortization and depreciation
From provisions to finance
amortization and depreciation
0 0 -175,695 -175,695
0 69,846 0 69,846
Total 2,443,965 69,846 -175,695 2,338,116
Transfer to reserves 0 0 -125,075 -125,075
*Macroeconomic and Financial Environment
Revenue from program in 2019 Project Invoiced
From/To
accrued
revenue
From/To
deferred
revenue
EUR
Net
amount
Ministry of Finance, Slovenia Program 2019 1,000,000 0 0 1,000,000
Ministry of Foreign Affairs, Slovenia TIAPS Montenegro 46,959 0 0 46,959
Ministry of Foreign Affairs, Slovenia PACT Montenegro 84,024 13,622 0 97,645
GIZ TIAPS Georgia 122,785 0 0 122,785
EU FISR 764,243 0 0 764,243
Ministry of Finance, Slovakia PACT Montenegro 153,549 0 0 153,549
Ministry of Finance, the Netherlands Tax Administration, PIFC 179,457 0 0 179,457
Federal Ministry of Foreign Affairs,
Germany
TIAPS Montenegro 0 38,674 0 38,674
Banka Slovenije CB workshops (MFE*) 255,310 0 0 255,310
IMF Workshops 139,840 40,783 0 180,622
Other Small events 18,518 0 0 18,518
Total 2,764,684 93,079 0 2,857,762
To provisions to finance
amortization and depreciation
From provisions to finance
amortization and depreciation
0 0 -221,304 -221,304
0 0 101,226 101,226
Total 2,764,684 93,079 -120,078 2,737,684
Transfer to reserves 0 0 -128,794 -128,794
*Macroeconomic and Financial Environment
In addition, the Government of Slovenia contributed to the CEF by granting free of charge premises. This is an in-kind
contribution that was not recorded in the CEF books, estimated at EUR 12 per square meter (in total EUR 182,184 +
VAT EUR 40,081 = EUR 222,265).
NOTE 12: Financial income represents interest on deposits and exchange rate changes.
NOTE 13: COSTS OF MATERIALS
Costs of materials 2020 2019
Costs of energy 33,765 36,673
Materials and spare parts 15,909 10,656
Office supplies 2,359 15,244
Other costs of materials 5,924 22,796
Total 57,957 85,369
EUR
Costs of materials and spare parts comprise spare parts for equipment and materials for renovating and maintaining
the CEF premises.

84 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 85
NOTE 14: COSTS OF SERVICES
Costs of services 2020 2019
Production services costs 139,049 119,438
Transport services costs for events 39,029 266,880
Rents 26,531 23,047
Costs of employees’ business travels 5,744 53,782
Payments, bank services, insurance costs 10,467 11,269
Intellectual services costs for events 188,033 152,103
Intellectual services costs 20,668 17,746
Costs of exhibition, advertising 2,918 6,313
Personal services costs for events (authors, translators, mentors) 117,814 168,302
Costs of other services for events 86,501 316,281
Total 636,754 1,135,161
Intellectual services for events records fees for experts, authors, translators and mentors who work from their companies
and issue invoices to the CEF; and personal services for events records fees for experts, authors, translators
and mentors who are paid by contract. The CEF records transport services for events (e.g. travel for participants) only
when sponsored by a donor. Other services for events comprise copying materials, rent of interpretation equipment
and classrooms when workshops are organized outside the CEF, as well as refreshments and lunches for participants.
Intellectual services are costs of experts that support the CEF with services, such as communication, legal advice
and training.
Due to COVID-19, after March 13, 2020 there were no face-to-face events and no traveling. This resulted in lower
costs of events.
NOTE 15: LABOR COSTS
Labor costs 2020 2019
Employee salaries 1,090,379 955,037
Employee salaries compensation 10,374 17,007
Reimbursement and other employee benefits 159,037 156,402
Employer's salaries contributions, taxes 161,774 145,269
Other labor costs 16,936 31,848
Total 1,438,499 1,305,563
EUR
EUR
In 2020, the CEF calculated costs of annual leave days that were unused in 2020 and are to be used by the end of
August, 2021.
Other labor costs comprise provisions for severance payments and long-service bonuses.
The earnings of members of the Executive Management and Governing Board
Data regarding groups of persons
EUR
Employees under individual employment contract
December 31, 2020 December 31, 2019
Salaries 68,442 71,000
Reimbursements and other employee benefits 2,127 2,217
Total 70,569 73,217
Members of the Governing Board are not compensated.
Number of employees by formal education level
Number of employees by formal education level (EQF) December 31, 2020 December 31, 2019
Level 4 2 2
Level 5 3 3
Level 6 6 6
Level 7 18 17
Level 8 4 4
Total 33 32
NOTE 16: AMORTIZATION AND DEPRECIATION
Amortization and depreciation 2020 2019
Amortization of intangible assets 9,315 3,110
Depreciation of equipment 42,043 41,388
Depreciation of other fixed assets 18,489 18,105
Total 69,846 62,603
EUR
The CEF calculates salaries and other labor-related costs (meal and travel allowance, supplement health and pension
insurance, travel insurance) according to the CEF Rules of Employment, Annex I. On December 31, 2020, the CEF had
33 employees and 32 employees on December 31, 2019. In 2020, there were four international employees, who do
not pay social security and personal income taxes in Slovenia.

86 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 87
NOTE 17: OTHER OPERATING EXPENSES
EUR
Other operating expenses 2020 2019
Contributions not related to labor costs 1,510 6,328
Students’ work 9,343 10,709
Other costs 2,366 640
Total 13,219 17,677
NOTE 18: Financial expenses record negative exchange rate changes.
NOTE 19: Other expenses represent differences from rounded amounts paid in cash.
4. Determination of fair value
and risk management
The CEF is exposed to the following risks: strategic, reputational, operational and financial.
The CEF’s prudent approach to risk management helps the CEF maintain its high level of operational
quality and is crucial for achieving its business goals. The use of standard methodologies
and risk management procedures enables quality risk assessment, timely responses, and minimum
exposure of the CEF to major risks, as stated above.
Strategic risks may arise from the pursuit of an unsuccessful business plan, poor business decisions,
substandard execution of decisions, inadequate resource allocation, and/or from a failure
to respond well to changes in the business environment. The CEF manages these risks by close
cooperation and under supervision by the Governing Board and other stakeholders.
Reputational risks may result in damages to the CEF’s reputation, which may manifest either in
lost revenues or increased costs and in destruction of stakeholders’ value and trust. To minimize
these risks, the CEF invests in building its ethics, security, sustainability, quality and innovation to
remain capable of answering to stakeholders’ needs.
Operational risks are imputed in CEF business activities through inadequate or failed internal
processes, people and systems, as well as from some external events. The CEF manages these
risks by strict implementation of internal procedures that include, but are not limited to, strict implementation
of the principle of four eyes, introduction of the internal audit function, and training
managers to improve their control functions.
Financial risks are associated with financing, including budgeting, managing expenses within
budgets, and overspending in case a project cannot be successfully completed without additional
expenses. The CEF manages these risks by budgeting for all expenses that might occur within the
project, and building sufficient reserves to cover potential loss from the project.
CREDIT RISK
EUR
Credit risk Note December 31, 2020 December 31, 2019
Cash and cash equivalents 4 2,282,149 1,849,806
Trade receivables 3 75,508 93,020
Total 2,357,657 1,942,827

88 CEF FINANCIAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 89
CURRENCY RISK
Exposure to changes in exchange rates is presented in the table below.
EUR
Currency risk December 31, 2020 EUR USD CHF RSD
Cash and cash equivalents 2,282,149 2,280,967 1,182 0 0
Trade receivables 75,508 75,508 0 0 0
Operating liabilities 146,732 145,320 0 1,412 0
Total 2,504,389 2,501,795 1,182 1,412 0
Currency risk December 31, 2019 EUR USD CHF GBP
Cash and cash equivalents 1,849,806 1,848,831 975 0 0
Trade receivables 93,020 93,020 0 0 0
Operating liabilities 213,038 207,444 0 921 171
Total 2,155,865 2,149,296 975 921 171
EUR
Financial liabilities
Fair value is calculated for reporting purposes based on the present value of future principal and interest payments,
discounted using a market interest rate at the end of the reporting period.
Trade and other receivables
The fair value of operating and other receivables is calculated for reporting purposes based on the present value of
future principal and interest, discounted according to a market interest rate at the reporting date.
Financial instruments are categorized to three levels with respect to the calculation of their fair value:
Level 1 – assets and liabilities at market price (the use of published prices arising on an active market for the same
assets or liabilities)
Level 2 – assets and liabilities not classified as Level 1 but whose value is determined directly or indirectly on the
basis of market observables
Level 3 – assets and liabilities whose value cannot be determined on the basis of market observables and thus cannot
be classified to Level 1 or Level 2.
The fair value of current assets and liabilities is equal to their carrying amount.
Change in exchange rate would not have significantly effect on the financial statements.
FAIR VALUE
INTEREST-RATE RISK
Exposure to interest-rate risk, i.e. the risk of changes in interest rates on deposits, is low. By planning investment activities,
current operations and deposits, the CEF’s cash flows are coordinated and do not require borrowings.
Interest-rate risk December 31, 2020 December 31, 2019
Financial instruments at fixed interest rates
Financial assets (deposits) 2,261,450 1,848,308
Financial liabilities 0 0
Financial instruments at fixed interest rates
Financial assets 0 0
Financial liabilities 0 0
Total 2,261,450 1,848,308
Determination of fair value
Given the CEF’s accounting policies and classification approach, the determination of the fair value of both financial
and non-financial assets and liabilities is necessary.
The fair values of individual groups of assets were determined for measurement and/or reporting purposes based on
the method described below.
Non-current financial assets
The fair value of non-current financial assets is determined on the closing market price as at the reporting date.
EUR
Fair value
Carrying
amount
2020
Fair value
Carrying
amount
EUR
2019
Fair value
Trade receivables 75,508 75,508 93,020 93,020
Cash and cash equivalents 2,282,149 2,282,149 1,849,806 1,849,806
Prepayments and other assets 47,543 47,543 119,113 119,113
Trade payables 16,847 16,847 64,490 64,490
Other short-term payables 4,223 4,223 26,960 26,960
Advances payable and other current liabilities 619,151 619,151 353,830 353,829
Total 3,742,225 3,742,225 3,098,174 3,098,174
FAIR VALUE OF ASSETS
Fair value of assets Level 1 Level 2
2020
Level 3 Level 1 Level 2
EUR
2019
Level 3
Trade receivables 0 0 75,508 0 0 93,020
Cash and cash equivalents 2,282,149 0 0 1,849,806 0 0
Prepayments and other assets 0 0 47,543 0 0 119,113
Total 2,282,149 0 819,855 1,849,806 0 803,088

90
CEF FINANCIAL REPORT 2020
CERTIFIED AUDITOR’S REPORT 91
FAIR VALUE OF LIABILITIES
Fair value of liabilities Level 1 Level 2
2020
Level 3 Level 1 Level 2
EUR
2019
Level 3
Trade payables 16,847 0 0 64,490 0 0
Other short-term payables 4,223 0 0 26,960 0 0
Advances payable and other
current liabilities
619,151 0 0 353,829 0 0
Total 640,221 0 0 445,279 0 0
5. Related party transactions
The CEF does not have related parties.
The earnings of members of the Executive Management and Governing Board are presented in Note 15: Labor costs.
6. Events after the statement of financial
position date
There were no events after the balance sheet date that would have a material effect on the financial statements for
the year 2020.
7. Certified auditor’s report

92
CEF FINANCIAL REPORT 2020
FINANCIAL STATEMENTS 93

94
CEF FINANCIAL REPORT 2020
95
The CEF hosts two IMF Fiscal Affairs Department (FAD) regional advisors: Ms.
Suzanne Flynn, covering public financial management (PFM), and Mr. Allan
Jensen, covering revenue administration (RA). Together with two other IMF
colleagues, Mr. Bojan Pogačar (PFM) and Mr. Dmitri Jegorov (RA) 1 who joined
in 2020 and are both based at the Joint Vienna Institute, they facilitate the
implementation of an IMF project to support capacity development in the
areas of public financial management and revenue administration in SEE.
The recipient countries are Albania, Bosnia and Herzegovina, Kosovo, Montenegro,
North Macedonia, and Serbia.
This project is delivered with financial support from the EU and the Swiss
State Secretariat for Economic Affairs (SECO). 2 A set of very clear delivery
milestones are established for each country in terms of reform progress in
the areas that are addressed by the project. The program’s delivery model
involves IMF Headquarters’ (HQ) led missions to the beneficiary countries;
regular visits by IMF Regional Advisors; capacity development support provided
remotely; and a considerable number of visits by short-term IMF experts. 3
The table below gives a broad overview of the program’s focus areas in 2020,
key activities and preliminary outcomes.
Despite the Covid-19 travel restrictions, the capacity development program
progressed through remote online missions, conducted successfully with the
cooperation of the authorities of each country. In addition, short regional webinars
were organized to disseminate good practice in light of the pandemic
and enable countries to share their respective experiences. The annual steering
committee was held online in collaboration with the CEF in May 2020.
APPENDIX
IMF Advisors’ Report
The IMF advisors cooperate closely with the CEF on training needs assessments
in the areas of public financial management and revenue administration
in SEE countries, and the design and delivery of training and other input
to some of the CEF’s learning activities. Coordination meetings are held with
the CEF staff on a quarterly basis, involving HQ based IMF staff.
1 The two IMF advisors that are not based at the CEF are hosted by the Joint Vienna Institute in
Vienna; however, due to the Covid-19 situation they are currently delivering remote capacity
development support from their home countries.
2 In 2020, SECO provided financial support to revenue administration only; however, from January
2021 public financial management is also supported.
3 Most of the capacity development activities were delivered remotely, using web-based
communication tools and e-mails.

96 CEF ANNUAL REPORT 2020
APPENDIX 97
IMF CAPACITY DEVELOPMENT SUPPORT TO SEE COUNTRIES IN 2020 4
PUBLIC FINANCIAL MANAGEMENT
Focus Areas Activities * Examples of Outcomes
Stronger PFM laws and
institutions, including
PFM reform strategies.
Strengthening of budget
execution and controls.
Improving appraisal,
selection and
implementation of
public investments.
Strengthening and
better integration
of cash and debt
management.
Strengthening fiscal
risk management,
particularly in light of
the Covid-19 pandemic.
HQ missions (7)
HQ staff visit (1)
Regional advisor visits (5)
Short-term experts (8)
Regional on-line webinars (4)
Ongoing remote support
from two Regional Advisors
and HQ staff.
The Covid-19 situation has impacted on reforms and
day-to-day operations across all ministries of finance
in the region. Despite this, they were able to achieve
reform results, some of which are highlighted below.
• New PFM reform strategies (2021–2025) have
been developed by the state institutions, the
Federation, Republika Srpska, Brčko District and
state level in Bosnia and Herzegovina.
• All countries are in process of developing new PFM
strategies and most have continued to hold PFM
dialogues remotely.
• Five countries in the region had completed Public
Investment Management Assessments by the
end of 2020 and have started to implement the
recommendations.
• Albania is actively working to reduce the risk
and management of arrears through its Arrears
Working Group.
• Serbia and Albania have set up and staffed
dedicated public investment management
units and are developing capacity to enhance
investment outcomes.
• Other countries in the region have improved or are
improving their legal and regulatory frameworks for
public investment management (Albania, Kosovo,
Montenegro, North Macedonia, Serbia).
• Countries in the region are incrementally improving
the disclosure of fiscal risks in fiscal strategy
documents and budget documents.
• Fiscal Risk Units have been institutionalized
in Albania and Serbia and capacity is further
enhanced in Kosovo.
• Models and data flows to the ministries of finance
or economy are improving to enable the monitoring
of fiscal risks emanating from public corporations
across the region (e.g., Albania, Bosnia and
Herzegovina, Kosovo and Serbia).
• In the time of the Covid-19 crisis, countries in
the region have tools to enable them to assess
potential budgetary impact of standardized
credit guarantee schemes (e.g., Albania, North
Macedonia, Serbia).
4 Some IMF tax administration activities in Bosnia and Herzegovina were financed by the government of the Netherlands and are not included in
this table.
* Due to the Covid-19 situation, most of the activities were delivered remotely, using web-based communication tools (e.g., WebEx and Zoom).
REVENUE ADMINISTRATION
Focus Areas Activities * Examples of Outcomes
Improving
governance,
organization
structures and
human resource
management.
Developing mediumterm
revenue
strategies.
Implementing
modern compliance
risk management
methodology,
including industrybased
compliance
strategies.
Strengthening tax
audit.
Consolidating core
tax functions in fewer
offices.
Strengthening tax
debt collection.
Strengthening
compliance
efforts for large
corporations.
Improving IT systems.
HQ missions (5)
Short-term
experts (28)
Regional
workshops (2)
Substantial
ongoing remote
support from two
regional advisors
The Covid-19 situation has impacted significantly on reforms and day-to-day
operations across all tax administrations in the region. Despite this, they
were able to achieve reform results, some of which are listed below.
• Most tax administrations in the region have played a key role
in implementing various Covid-19 related government financed
assistance packages to businesses and citizens.
• Multiyear reform programs are in place in all tax administrations, and
governance and management approaches are also gradually being
modernized: e.g., during 2020, Kosovo, North Macedonia and Serbia
developed new modernization programs. A major component of the
reform in Serbia includes acquiring a COTS solution for IT systems’
overhaul and business process reengineering.
• Major IT development projects are being implemented in several
countries. In Albania and Montenegro, this includes putting in
place systems for electronic reporting of invoice data to the tax
administrations. In Kosovo, Montenegro, and North Macedonia efforts
are underway to replace the current tax administration systems.
• Some tax administrations have consolidated their tax debt collection
functions in fewer offices (e.g., Albania: Three Collection Centers and
the Large Taxpayer Office, and Kosovo: one Collection Center). Kosovo
has also consolidated the VAT refund function into one office.
• Modern compliance risk management (CRM) methodology continues
to be phased in across all tax administrations in the region. In addition
to industry projects, some tax administrations are also focusing on
major risk clusters related to certain tax types (e.g., Albania and Serbia
– personal income tax for high-wealth individuals). In Bosnia and
Herzegovina, the Indirect Taxation Authority’s (ITA) CRM system now also
covers customs and an improvement to the CRM governance model.
• Some tax administrations have commenced investing in the
development of capacity in data analytics to enable better
identification of major compliance risk clusters (Albania and Serbia).
• The Albanian tax administration has implemented the automatic
exchange system (OECD standards) for financial account information
to/from 72 foreign jurisdictions.
• In Bosnia and Herzegovina, an IT system solution has been developed
and put in place for collecting invoice data for CRM purposes and
to improve the VAT revenue sharing mechanism, which depends on
accurate registration of the final consumption of goods and services.
• The Albanian Central Tax Administration Office has come far in
implementing a fiscalization system (real-time monitoring) of
mandatory electronic invoices.
• The tax audit and debt collection functions are gradually improving
across most administrations. In Bosnian-Herzegovinian ITA, new audit
manuals and a quality assurance system were put in place.
• The use of key performance indicators as a management tool to
achieve higher organizational performance in key areas has begun
to take roots in some administrations (e.g., Albania, Kosovo, North
Macedonia, Montenegro).
* Due to the Covid-19 situation, most of the activities were delivered remotely, using web-based communication tools (e.g., WebEx and Zoom).

PARTNERS
CEF ANNUAL REPORT
WAS THE WINNER OF
BEST ANNUAL REPORT
IN THE CATEGORY
»OTHER ORGANIZATIONS«
FOR 2019
IN PREPARATION AND IMPLEMENTATION OF OUR LEARNING PROGRAM WE
COOPERATE WITH A NUMBER OF LONG-STANDING PARTNER AND KNOWLEDGE
INSTITUTIONS, PEER ORGANIZATIONS AND NETWORKS
Published by: Center of Excellence in Finance
Production editor: Urška Miklič
Text editor: Kadri Põdra
Design: Sonja Eržen
Photographs: CEF Archive, Miha Fras & Urška Rahne
Illustrations: Sonja Eržen, Iztok Ambrož, Alenka Oblak & Ana Frangež Kerševan
Printing: Tiskarna Januš
May 2021
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this Annual Report do not imply any judgment on the legal status of any territory, or any
endorsement or the acceptance of such boundaries.

About us
CEF is international organization with the mission to support
capacity development for finance officials in SEE through
learning. We work with our constituency to support their
public financial management, tax policy and administration,
and central banking reform efforts. We do this through
innovative, participatory, and practical learning solutions.
The CEF serves as a knowledge hub for the region. We
combine topical expertise and in-depth knowledge of
countries in the region with a good comprehension of how
reforms take place. We know how to nourish and expedite
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