CEF Annual report 2021

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<strong>2021</strong><br />

<strong>CEF</strong> <strong>Annual</strong> Report<br />

Supporting capacity development of public<br />

officials and their institutions in South East Europe<br />

through learning and knowledge sharing

LEGEND<br />


Blended learning is<br />

a combination of online<br />

learning activity and<br />

face-to-face workshop /<br />

Hybrid event<br />

Round-table discussion<br />

Webinar / Online course /<br />

Online meeting<br />

CIPFA<br />

EU<br />

ERP<br />

FISR<br />

Chartered Institute<br />

of Public Finance and<br />

Accountancy<br />

European Union<br />

Economic Reform<br />

Programme<br />

Fiscal Implications<br />

of Structural Reforms<br />

<strong>CEF</strong><br />

<strong>Annual</strong> Report<br />

<strong>2021</strong><br />

Conference<br />

GIZ<br />

Deutsche Gesellschaft<br />

für Internationale<br />

Zusammenarbeit<br />

Workshop<br />

IMF<br />

International Monetary<br />

Fund<br />

Seminar<br />

High-level meeting<br />

IT<br />

IPSAS<br />

ODI<br />

Information Technology<br />

International Public Sector<br />

Accounting Standards<br />

Overseas Development<br />

Institute<br />

In-country certification<br />

program<br />

PACT<br />

Public Accountants<br />

Certification Training<br />

Country visit / Study visit<br />

PFM<br />

Public Financial<br />

Management<br />

Lecturing experts<br />

SDG<br />

Sustainable Development<br />

Goal<br />

Meeting<br />

SEE<br />

South East Europe<br />

TIAPS<br />

Training of Internal Audit<br />

in the Public Sector


CHAIR OF THE <strong>CEF</strong> GOVERNING BOARD’S WELCOME................................... 6<br />

DIRECTOR’S WELCOME..................................................................................... 7<br />

BUSINESS REPORT..................................................11<br />

OUR APPROACH TO LEARNING .....................................................................13<br />

People at the Center of Learning ..................................................................15<br />

<strong>CEF</strong> Methodology of Becoming and Being a Learning Organization .........16<br />

Monitoring, Evaluation and Learning.............................................................18<br />

LEARNING AND KNOWLEDGE SHARING PROGRAM....................................21<br />

Learning and Knowledge Sharing Program Highlights................................22<br />

Leadership for Managing Reforms ...............................................................24<br />

Public Financial Management........................................................................28<br />

Budget Preparation and Execution ............................................................................28<br />

Accounting ...................................................................................................................31<br />

Auditing ........................................................................................................................32<br />

Tax Policy and Administration .......................................................................34<br />

Central Banking ..............................................................................................37<br />

Data and Analysis for Designing Policies .....................................................38<br />

<strong>CEF</strong> – 20 years of capacity development in SEE .......................................40<br />

GOVERNANCE...................................................................................................43<br />

Governing Board .............................................................................................44<br />

Strategic Direction 2022–2026 .................................................................................46<br />

Advisory Board ................................................................................................48<br />

Coordinators ....................................................................................................52<br />

Secretariat .......................................................................................................54<br />

FINANCIAL REPORT.................................................59<br />

APPENDIX: IMF Advisors’ Report ..................................................................90

6 <strong>CEF</strong> ANNUAL REPORT <strong>2021</strong> <strong>CEF</strong> ANNUAL REPORT <strong>2021</strong> 7<br />

CHAIR OF THE <strong>CEF</strong> GOVERNING<br />



Dear colleagues,<br />

Dear friends,<br />

The year <strong>2021</strong> was an important<br />

milestone for Slovenia and for the<br />

<strong>CEF</strong>. Slovenia’s presidency of the <strong>CEF</strong><br />

Governing Board coincided with Slovenia’s<br />

presidency of the Council of the European<br />

Union (EU) and the 30 th anniversary of<br />

national independence. It was also a<br />

jubilee year for the <strong>CEF</strong>, that celebrated<br />

its 20 th anniversary.<br />

It is my pleasure to present you with<br />

the <strong>CEF</strong> <strong>Annual</strong> Report, highlighting the<br />

results that we together achieved in<br />

<strong>2021</strong>. With each annual <strong>report</strong> comes<br />

an opportunity to reflect on how we<br />

have been progressing in our vision to<br />

inspire public officials, both individuals<br />

and teams, to shape institutional<br />

governance that drives successful<br />

economies and fair societies.<br />

In 2001, the <strong>CEF</strong> started out as a small Slovenian institution;<br />

today, it is an international organization based in<br />

Slovenia. It was the Slovenian Ministry of Finance that,<br />

in consultation with the International Monetary Fund<br />

(IMF), decided to establish an institution with a mission<br />

to share knowledge and experience in institution building<br />

and capacity development in the area of public finance<br />

in the Western Balkans. From its modest beginning<br />

with only a handful of staff, the <strong>CEF</strong> has evolved<br />

into a world-renowned center of knowledge in Southeast<br />

Europe (SEE).<br />

The Slovenian Ministry of Finance has been the largest<br />

consistent donor to the <strong>CEF</strong> program right from the start.<br />

Our close partnership in these twenty years has been an<br />

opportunity to exchange best practices and knowledge<br />

between the two institutions. Experience has shown that<br />

strong and resilient partnerships are crucial for development<br />

and growth. This goes also for the close cooperation<br />

of the <strong>CEF</strong> with its regional members.<br />

The strength of every partnership demonstrates itself<br />

in challenging times. We have witnessed this in the last<br />

two years: the <strong>CEF</strong> has proved to be a resilient and flexi-<br />

ble partner, while ensuring knowledge to its partners. In<br />

<strong>2021</strong>, the <strong>CEF</strong> outstandingly implemented its planned<br />

program and delivered almost one hundred events over<br />

the year. The efforts of the whole <strong>CEF</strong> team and its partners<br />

towards a common goal in the changing global and<br />

regional circumstances have been comprehensive.<br />

Many challenges in SEE and beyond remain, and new<br />

challenges and difficulties are arising every day. It is important<br />

to make sure that the institutions in the region<br />

and its people remain strong, resilient to change, and<br />

adaptive to new circumstances. The mission of the <strong>CEF</strong><br />

is just that – to actively build through knowledge and<br />

partnership.<br />

Now that Slovenia’s mandate for the presidency of the<br />

<strong>CEF</strong> Governing Board is coming to an end and Albania<br />

will take over, allow me to thank the whole <strong>CEF</strong> community.<br />

I wish Albania a successful presidency and many<br />

accomplishments in achieving our mutual objectives in<br />

the coming year.<br />

Andrej Šircelj<br />

Minister of Finance, Slovenia<br />

In <strong>2021</strong>, an important achievement was the confirmation<br />

of our strategic direction until 2026. It reflects the <strong>CEF</strong>’s<br />

20 years of experience and is based on our thorough understanding<br />

of the opportunities and challenges of this<br />

region. For the first time, we made the <strong>CEF</strong>’s value-added<br />

explicit by developing our own methodology to support<br />

public institutions in becoming and being learning organizations.<br />

Our primary target audiences continue to be ministries<br />

of finance, central banks and tax administrations.<br />

Together, we collaborate with other public institutions, especially<br />

line ministries. As experts in learning and knowledge<br />

sharing on finance, we put people at the center of<br />

our activities.<br />

When it comes to the program implementation in <strong>2021</strong>,<br />

we continued to face similar challenges as the year before.<br />

Nevertheless, we were able to successfully carry out our<br />

plans and in total developed, designed and delivered 98<br />

events, most of them still online. To remain agile and adapt<br />

to circumstances, we invested in technologies to support<br />

events in a hybrid format. We facilitated four hybrid events,<br />

providing access to learning also to those unable to attend<br />

events in person. Agility was also reflected in the way we<br />

worked as a team: we continued to combine work from our<br />

headquarters and telework. Accordingly, we adapted our<br />

physical space that the team shares at our headquarters<br />

in Ljubljana to be a role model for other institutions.<br />

An annual overview is an opportunity to celebrate the<br />

achievements of all who contributed to our continuous<br />

progress. Our team joined forces with important stakeholders<br />

of the <strong>CEF</strong> community: Governing Board and<br />

Advisory Board members, <strong>CEF</strong> Coordinators, numerous<br />

donors and partners, and affiliated international and regional<br />

experts. Together we engaged 2,938 participants<br />

to learn and share knowledge. In collaboration, we published<br />

seven knowledge products to accentuate our learning<br />

offer. My sincere appreciation goes to each member<br />

of the <strong>CEF</strong> community. You again showcased your undermined<br />

commitment to our mission and the belief in the<br />

potential of people in SEE.<br />

Looking ahead, we continue to have ambitious plans to<br />

further develop in our role as a globally recognized knowledge<br />

hub. As we implement our strategy, we will continue<br />

to broaden our community and connect people to learn.<br />

Our region is rich with vibrant cultures and people that<br />

have amazing talents. It is on all of us to leverage from<br />

this, seize the opportunities, and create ones ourselves.<br />

Rather than remaining idle or even despairing, let’s all<br />

keep in mind that we have a choice, as well as a commitment,<br />

to the generations behind us to act.<br />

Jana Repanšek<br />


8 <strong>CEF</strong> ANNUAL REPORT <strong>2021</strong> <strong>CEF</strong> ANNUAL REPORT <strong>2021</strong> 9<br />


We support capacity development of public officials<br />

and their institutions in SEE through learning<br />

and knowledge sharing.<br />

OUR WORK<br />

We combine topical expertise in the fields of public<br />

financial management (PFM), tax policy and<br />

administration, central banking and data and<br />

analysis for designing policies (DAP) in the region<br />

with a good grasp of leadership skills required to<br />

manage reforms. We do this through innovative,<br />

participatory, and practical learning solutions.<br />

Our staff knows how to nurture and deepen<br />

learning among individuals and institutions.<br />


Today, we are a leader in applying people-centered<br />

learning approaches and holding the knowhow<br />

of becoming and being a learning organization.<br />

In 2015, the <strong>CEF</strong> became an international<br />

organization after 14 very successful years as a<br />

regional institution. We were established in 2001<br />

under the Stability Pact for South East Europe by<br />

the Slovenian Government, at the initiative of the<br />

Slovenian Ministry of Finance and in close cooperation<br />

with other ministries of finance of former<br />

Yugoslav countries and Albania.<br />


We primarily serve ministries of finance, tax administrations,<br />

and central banks in Albania, Bosnia<br />

and Herzegovina, Bulgaria, Croatia, Kosovo,<br />

Moldova, Montenegro, North Macedonia, Romania,<br />

Serbia, Slovenia, and Turkey. We also address<br />

capacity development needs of line ministries<br />

and other key stakeholders and are present<br />

in some other countries.



OUR<br />



We are a leader in applying peoplecentered<br />

learning approaches. They are<br />

associated with effective learning as<br />

they induce (critical) thinking, analysis<br />

and problem solving.<br />

Learning<br />

needs of our<br />

learners<br />

Creative<br />

learning<br />

environment<br />

Acquired<br />

skills and<br />

knowledge of<br />

learners<br />

<strong>CEF</strong>’s<br />

participatory<br />

learning<br />

approach<br />

Learner at<br />

the heart of<br />

the learning<br />

process<br />

A range of<br />

learning<br />

methods and<br />

tools<br />

Learners’<br />


14 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


People at the Center of Learning<br />

Putting the learner at the center of our activities is essential<br />

in our work. We cultivate a human-centered approach<br />

internally and externally, to better understand the needs of<br />

those we serve in our mission.<br />

We demonstrate our learning approach in practice by adapting flexibly and<br />

innovatively to the changes we notice in our environment, the learning needs we<br />

capture, and the feedback we receive.<br />

Our learning approach addresses different learning needs. For this purpose, we<br />

have selected and implemented a set of learning formats. They show our diversity<br />

and expertise in what we can organize and carry out. They can be organized<br />

in classrooms, online, or as combined (blended/hybrid) events, and they are of<br />

different duration. Microlearning activities, such as video lectures or webinars,<br />

are short; macrolearning activities are of longer duration, e.g. 2.5-day workshops<br />

and online courses, or certification programs for public sector accountants and<br />

auditors (PACT and TIAPS) that take one year or more.<br />







SPACES*<br />





(LEARNING)<br />


* Online Learning Campus, Line Ministries Portal, other online (meeting and social media) platforms

16 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


<strong>CEF</strong><br />

Methodology<br />

of Becoming<br />

and Being<br />

a Learning<br />

Organization<br />








In the past decade, we transformed into<br />

a learning organization and knowledge<br />

hub. This led us to deeper thinking and<br />

research on the topic and to develop<br />

our own methodology of how an institution<br />

can become a learning organization.<br />

We understand that a successful<br />

knowledge-sharing culture favors the<br />

continuous exchange of information,<br />

knowledge and experience between<br />

individuals, teams and institutions.<br />

Consequently, it fosters organizational<br />

growth and performance.<br />








AND<br />



This methodology consists of six building<br />

blocks and reflects our value-added in<br />

promoting lifelong learning and knowledge<br />

sharing within and across public<br />

institutions. With our learning activities,<br />

we actively support all public officials,<br />

regardless of their roles, to be leaders of<br />

change, who operate flexibly and find new<br />

ways to function and engage with other<br />

public institutions, and above all civil, academic<br />

and business environments.<br />

One of the cornerstones of the <strong>CEF</strong>’s strategic direction is our<br />

people-centered learning approach and know-how of becoming<br />

and being a learning organization. This approach focuses on<br />

public officials, teams and institutional governance in their respective<br />

countries. By applying it, we are striving to ultimately<br />

contribute to improving their economies and societies.<br />

We further defined this in our Strategic<br />

Direction 2022–2026, where we also<br />

pinpointed the strategic priorities of our<br />

member institutions and how we can<br />

advance (some of) them. We also examined<br />

the challenges and opportunities<br />

that we have envisaged for SEE. For further<br />

details see Chapter “Strategic Direction<br />

2022–2026”.<br />

We also promote a flexible and agile work environment. We<br />

have adjusted our office space and online collaboration tools to<br />

stimulate focus, inspire collaboration, and support our evolving<br />

organizational culture.<br />

Through practicing the principles of a learning organization, we<br />

have strengthened our competencies. This has led to the organizational<br />

growth of the <strong>CEF</strong> and an increase in the overall<br />

scope, quality, and impact of our activities.

18 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


Monitoring, Evaluation and Learning<br />

We frame the scope of activities and set priorities in our annual<br />

learning and knowledge-sharing program. We develop project-related<br />

results frameworks, internal change initiatives as well as specific<br />

objectives for each activity.<br />

To demonstrate the value we create, we use a wide<br />

range of quantitative indicators, such as participation<br />

statistics and surveys from our events, complemented<br />

by qualitative information gathered in exchange with the<br />

key stakeholders.<br />

In promoting a learning culture, we value open and direct<br />

feedback, and develop processes to loop the lessons<br />

learned back into improving our daily work and reviewing<br />

our strategic direction. We pay special attention<br />

to unaddressed learning needs, opportunities for knowledge<br />

sharing, and how new knowledge is applied.<br />

We link our annual performance plans to the above<br />

mentioned priorities at the institutional, team and personal<br />

levels. As part of monitoring the risks, we regularly<br />

reassess these targets and decide whether any mitigation<br />

is needed. We do that also by nurturing the co-ownership<br />

of the targets that we set.<br />

To collect feedback, we use a range of tools and opportunities<br />

through carrying out evaluation surveys after the<br />

events, gathering experts’ <strong>report</strong>s on their <strong>CEF</strong> missions,<br />

capturing value creation stories about behavioral changes,<br />

and promoting structured evaluation conversations.<br />

In <strong>2021</strong>, we continued with frequent consultations with<br />

key officials from our constituency and governing bodies<br />

as well as other partner institutions. This helped us gain<br />

a deeper understanding of individual learners’ motivation.<br />

They also proved to be of great support when developing<br />

our strategic document.<br />

It is also important to note that the highest value lies in<br />

our staff who are highly result-oriented. By implementing<br />

a continuous performance management system, we aim<br />

to get better alignment with our mission, increase transparency,<br />

ownership and effectiveness, and reduce the<br />

duplication of efforts.<br />


Our risk management process supports decision-making<br />

and planning, increases managerial<br />

accountability, and ultimately leads to<br />

greater efficiency and effectiveness. It also<br />

improves service quality and supports the<br />

ongoing change management efforts that the<br />

<strong>CEF</strong> needs to undergo to thrive as a learning<br />

organization. The protracted pandemic further<br />

increased the importance of risk management.<br />

We have additionally considered the challenges<br />

related to staff well-being and engagement,<br />

and the operational risks stemming from extended<br />

periods of teleworking.<br />

Other preventive measures to foresee and mitigate<br />

the consequences of Covid-19 related<br />

risks addressed:<br />

• policies and procedures<br />

• facilities, supplies and finances<br />

• learning and training<br />

• communication and messaging<br />

All of them were evaluated in the context of our<br />

working environment and external factors.





We base our partnership with public<br />

officials in SEE on delivering wellbalanced<br />

learning and knowledgesharing<br />

initiatives, spanning across<br />

five thematic areas, as well as<br />

governance and outreach activities.<br />

Public<br />

Financial<br />

Management<br />

Budget Preparation<br />

and Execution<br />

Accounting<br />

Auditing<br />

Leadership<br />

for Managing<br />

Reforms<br />

Tax Policy and<br />

Administration<br />

Data and<br />

Analysis for<br />

Designing<br />

Policies<br />

Central Banking

22 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


<strong>2021</strong><br />

Learning and Knowledge<br />

Sharing Program Highlights<br />

The 2,938 participants, who attended 98 learning and<br />

knowledge sharing activities with 228 lecturing experts<br />

in <strong>2021</strong>, accumulated a total of 4,744 participant<br />

learning days.<br />

In <strong>2021</strong>, the Covid-19 pandemic contributed once more<br />

to the majority of events being delivered either online, hybrid<br />

or face-to-face at the <strong>CEF</strong> headquarters and in the<br />

region.<br />

98 4,744 228<br />

LEARNING &<br />




7<br />





2,938<br />




Our work includes also capturing and packaging knowledge<br />

and experience through different types of printed<br />

and digital knowledge products. In <strong>2021</strong>, we produced<br />

seven of them. They include various categories: recommendations,<br />

findings, insights, good practices, and the<br />

lessons learned. We repackage knowledge in a format<br />

(videos, printed and online publications, <strong>report</strong>s and<br />

other materials) that enables further sharing.<br />





(non-financed)<br />

Participation costs (travel and accommodation) for in-person<br />

events were either financed through project funding<br />

or by a sponsoring institution, i.e., an employer or a donor.<br />

For in-kind attendance, costs are estimated at EUR 200<br />

per participant per day plus EUR 500 for airfare. In-kind<br />

attendance from institutions situated in the country of<br />

the event location and for participants of online learning<br />

events is estimated at nil travel and accommodation cost.<br />

ALL<br />

DAYS<br />


DAYS<br />

(non-financed)<br />

COSTS<br />

EUR<br />

Albania 255 7 448.00 15.00 6,500<br />

Bosnia and Herzegovina 272 0 424.75 0.00 0<br />


Bulgaria 86 1 99.25 2.00 900<br />

Croatia 59 0 101.00 0.00 0<br />

GOVERNANCE (129)<br />

4 %<br />

OUTREACH (43)<br />

1 %<br />



12 %<br />

ACCOUNTING (483)<br />

16 %<br />

AUDITING (354)<br />

12 %<br />


AND EXECUTION (541)<br />

18 %<br />



17 %<br />


9 %<br />



9 %<br />

Kosovo 142 3 233.75 7.00 2,900<br />

Moldova 268 1 315.00 0.75 650<br />

Montenegro 172 7 288.75 14.00 6,300<br />

North Macedonia 440 39 1,066.25 78.00 35,100<br />

Romania 114 0 182.00 0.00 0.00<br />

Serbia 318 3 336.75 6.00 2,700<br />

Slovenia 146 0 142.00 0.00 0.00<br />

Turkey 342 2 517.25 5.00 2,000<br />

TOTAL (<strong>CEF</strong> constituency) 2614 63 4,154.75 127.75 57,050<br />

OTHER COUNTRIES 324 16 589.25 24.30 12,850<br />

TOTAL 2938 79 4744.00 152.00 69,900<br />


Armenia, Austria, Azerbaijan, Belgium, Egypt, Estonia, France, Georgia, Germany, Greece, Hungary, Indonesia, Ireland,<br />

Jordan, Latvia, Lithuania, Malta, Mongolia, Morocco, Pakistan, Poland, Slovakia, Switzerland, Tajikistan, Ukraine, the<br />

Netherlands, the United Kingdom, United States of America

24 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


EVENTS<br />

Leadership for<br />

Managing Reforms<br />

In <strong>2021</strong>, we evolved our vision of this<br />

thematic area. With it, we aim to support<br />

people, teams, and institutions to envision,<br />

design and implement policy reforms.<br />

We see public officials as confident and<br />

networked leaders of ideas, people, and reforms.<br />

That is why we offer learning events<br />

that stimulate institutional and personal capacities and<br />

growth. We do so by focusing on communication, problem-solving,<br />

networking, digital skills, policy cycles, and<br />

management.<br />

We also aim to support the teams in institutions in organizing<br />

work based on trust and values, through exploring modalities<br />

for joint problem-solving that work best for them,<br />

bringing in innovation and spirit of joint achievements.<br />

We firmly believe public institutions can advance as<br />

knowledge-centered, resilient, and innovative organizations.<br />

To support this, we offer our own institutional<br />

experience in knowledge sharing, leadership, and nurturing<br />

organizational culture. We provide learning on<br />

inter-governmental policy coordination and collaboration,<br />

foresight and strategic planning, and resilience.<br />

In <strong>2021</strong>, we saw numerous examples of leadership at all<br />

levels and corners of our constituency and partners. Living<br />

and working with the pandemic, handling the multifaceted<br />

agendas of economic recovery intertwined with digital and<br />

green transformations. All this made the public officials<br />

braver, innovative, with improved digital and face-to-face<br />

communication skills, inclusive and caring of many different<br />

interests and people. The public institutions, their<br />

teams, and individuals continued to go forward.<br />

Natasha Ilijeva Acevska<br />

Senior Program Officer and thematic area lead<br />

<strong>CEF</strong><br />

New Thinking on Economic Growth<br />

Stakeholder Mobilization for Successful<br />

Structural Reforms*<br />

Role of Communications in Reform Processes<br />

Innovation in Public Finance:<br />

Listen-Share-Connect-Cocreate<br />

Network of Regional Experts in Structural<br />

Reforms<br />

Effective Participation in Virtual Meetings**<br />

Strategic Human Resource Management and<br />

Employee Performance Management in Public<br />

Institutions<br />

The Role of International Relations Department<br />

in Support of Institutional Partnerships<br />

Exploring the Future Through the Lens of<br />

Public Finance Institutions<br />

2022–2024 ERP Launch<br />

Revenue Administration and PFM Reform in<br />

SEE - <strong>Annual</strong> Coordination Meeting<br />

Interinstitutional Knowledge Sharing on HRM’s<br />

Strategic Role in Public Finance Institutions,<br />

study visit for Moldovan public institutions<br />

* Seven events organized for Albania, Bosnia and Herzegovina,<br />

Kosovo, Montenegro, North Macedonia, Serbia and Turkey<br />

** Online course for the Ministry of Foreign Affairs (Diplomatic<br />

Academy), Slovenia<br />


• Posters on Listening and Communication<br />

Skills<br />

• Mind Maps and Conversational Poster<br />


• EU<br />

• IMF<br />

• Ministry of Finance, Slovakia<br />

• Ministry of Finance, Slovenia<br />

• State Secretariat for Economic Reforms<br />


26 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


VOICES<br />


Participation in this workshop helped me understand the new approach<br />

for costing of structural reforms, and how these reforms will<br />

gain value after costing them according to this approach.<br />


At present, I am trying to apply all the acquired knowledge in preparing<br />

the ERP in the Republic of Srpska. It is crucial to work on<br />

yourself and to improve yourself through constant learning. The<br />

<strong>CEF</strong> is a perfect place for gaining new knowledge, practices and<br />

ideas that are applicable in my everyday duties.<br />



The learning initiatives of the FISR project, organized by the <strong>CEF</strong>,<br />

have improved several aspects of my work and have made a great<br />

contribution to the overall ERP process as well as my personal<br />

achievements.<br />


Being new to this area of work, it was very useful to get an overview<br />

of how things work in practice. The course also gave me ideas how<br />

to apply some of the discussed subject matters in my line of work.<br />


I would like to thank the <strong>CEF</strong> team for their FISR learning and knowledge<br />

sharing activities in the past two years that have improved<br />

our capacities for streamlining the ERP coordination process, better<br />

identification of structural challenges and easier, smoother<br />

drafting of reform measures, which has ultimately increased the<br />

quality of the Economic Reform Programme of North Macedonia.<br />


The structure of webinars was in line with the defined goals and<br />

my personal needs in the area of programing and budgeting of the<br />

ERPs. I learned a lot from the experts and I will use their recommendations<br />

in my further work in the area of the ERP.<br />


The <strong>CEF</strong> online training course highlighted the key challenges of<br />

our structural reform agenda on the ERP. It encouraged me to improve<br />

the process and share relevant information to the authorized<br />

officials in Turkey. Me and my colleagues are eager to improve the<br />

policy-making process in the best way.<br />





FISR is a multi-beneficiary project<br />

implemented by the <strong>CEF</strong> and funded<br />

by the EU. The project is targeted<br />

to the EU candidate countries and<br />

potential candidates in the Western<br />

Balkans and Turkey. It aims to<br />

strengthen the analytical capacities<br />

needed for a comprehensive assessment<br />

of fiscal implications of the<br />

structural reforms, promote greater<br />

fiscal policy coordination among relevant<br />

authorities, and stimulate the<br />

exchange of good practices in the<br />

region. It was launched in 2019 and<br />

will end in April 2022.<br />

In <strong>2021</strong>, the project continued to<br />

support the ERP process through<br />

numerous learning activities, policy<br />

dialogues, and knowledge products.<br />

We facilitated regional inputs into<br />

amending the European Commission’s<br />

(EC) ERP Guidance Note, thus<br />

securing the bottom-up approach,<br />

and organized the launch of the<br />

ERP process each year.<br />


In the autumn of <strong>2021</strong>, we returned physically to the<br />

beneficiary countries and delivered five face-to-face<br />

events. The positive feelings of reconnection and<br />

sense of community were reinforcing for both the<br />

country teams and the <strong>CEF</strong> colleagues and experts.<br />

We delivered 20 in-country customized learning initiatives<br />

in the local languages of participants from<br />

the seven project countries. The focus was maintained<br />

on the costing and budgeting of structural<br />

reforms, while in <strong>2021</strong>, it was complemented with<br />

strengthening the capacities for engaging the external<br />

stakeholders in the ERP and estimating the<br />

impact assessment of reforms.<br />

At these events, we provided the combined teams of<br />

line ministries and finance ministries with an online<br />

environment and a platform for connecting, exchanging<br />

knowledge, and solving problems together.<br />


We invite you to experience our enriched learning offer by visiting:<br />

• Everything you wanted to know about structural reforms:<br />

https://www.cef-see.org/fisr-everything-about-sr<br />


https://centerofexcellenceinfinance.exposure.co/<br />


www.lineministries.org<br />



www.cef-see.org/publications<br />

12 regional events we organized in various formats:<br />

online, face-to-face and hybrid, including<br />

workshops, online courses, webinars, a high-level<br />

policy dialogue, and meetings for launching the<br />

ERP cycle.<br />

We tackled topics that are in direct support of the<br />

ERP process, especially exploring a post-Covid-19<br />

vision for the ERP process, performance-based<br />

budgeting, monitoring structural reforms, as well<br />

as topics around the accounting related to structural<br />

reforms. We also worked on increasing the<br />

capacity for policy drafting and negotiation, exploring<br />

how communication can support reforms,<br />

and integrity in the implementation of reforms.

28 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


EVENTS<br />

Managing Education System Reforms<br />

Public Financial<br />

Management<br />



This year’s program was<br />

again predominantly carried<br />

out online. This pushed us to<br />

explore and introduce new<br />

approaches and tools.<br />

Assessing the Fiscal Risks of State-Owned<br />

Enterprises<br />

Performance-Based Budgeting: High<br />

Expectations and Modest Achievements<br />

Towards Integrating Structural Reforms and<br />

Fiscal Framework in Bosnia and Herzegovina<br />

Costing and Budget Integration of Structural<br />

Reforms (Moldova-specific webinar)<br />

Integration of Structural Reforms into the<br />

National Budget (Moldova-specific webinar)<br />

Management of Public Investments (Moldovaspecific<br />

webinar)<br />

Consultative Meeting on ERP Guidance Note<br />

Knowledge Sharing on the Costing of<br />

Structural Reforms*<br />

Monitoring Implementation of Structural<br />

Reforms<br />

In <strong>2021</strong>, we have enriched the Budget Preparation and Execution (BPE) learning program with a rewarding<br />

experience in the delivery of hybrid events. Using modern equipment and facilitation tools,<br />

we simultaneously gathered audiences in the physical and online spaces to jointly exchange knowledge<br />

on monitoring the implementation of structural reforms. Nevertheless, online courses and webinars were<br />

still predominant in the BPE program this year.<br />

We have continued close collaboration with the IMF Fiscal Affairs Department (FAD) through the delivery of a<br />

joint regional online course on Assessing the Fiscal Risks of State-Owned Enterprises, that complemented their<br />

technical assistance activities in SEE.<br />

We also continued with our multiannual program structured to assess fiscal implications of structural reforms<br />

in the ERPs. It aims to strengthen the capacities of line ministries. We achieved this through the delivery of 7<br />

learning activities on Knowledge Sharing on the Costing of Structural Reforms. They were customized to country-specific<br />

learning needs and capacities of officials from line and ministries of finance in Western Balkans<br />

and Turkey.<br />

One of the biggest novelties in the <strong>2021</strong> BPE program was the introduction of a targeted learning opportunity<br />

for officials from the ministries of finance of Bosnia and Herzegovina. It consisted of two phases, which included<br />

numerous online meetings organized throughout the year. The focus was on joint group work on strengthening<br />

team spirit and coordination, building trust, designing internal guidelines on integration of structural reforms<br />

and fiscal frameworks, and their practical implementation in preparation of the ERP for 2022–2024.<br />

* Seven events organized for Albania, Bosnia and<br />

Herzegovina, Kosovo, Montenegro, North Macedonia,<br />

Serbia and Turkey.<br />


• Comparative Analysis of the ERP <strong>2021</strong>–2023<br />

Assessment Reports<br />


• EU<br />

• IMF<br />

• Ministry of Finance, Slovakia<br />

• Ministry of Finance, Slovenia<br />


• EC (DG EMPL, DG ECFIN)<br />

• Institute of Economic Research, Slovenia<br />

• OECD<br />

• UNI<strong>CEF</strong><br />

Tara Vasiljević<br />

Program Officer and thematic area lead<br />


30 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />



We successfully concluded the two-year<br />

certification training for the third generation<br />

of public sector accountants in North<br />

Macedonia (PACT). Due to the Covid-19 circumstances,<br />

we transformed and delivered all modules in an online<br />

format for the first time. We prepared the project<br />

and secured financial support to continue the training<br />

on the diploma level in the following two years.<br />

The program promotes regional cooperation in<br />

overcoming common challenges in the PFM reform<br />

through accounting. It supports the development<br />

and recognition of the accounting profession through<br />

certification trainings, and strengthens inter-institutional<br />

cooperation across countries.<br />

One of the highlights of the year was the first joint<br />

international conference organized as a hybrid event<br />

in North Macedonia, in partnership between the <strong>CEF</strong><br />

and Chartered Institute of Public Finance and Accountancy<br />

(CIPFA). It brought together almost 200<br />

participants from 30 countries and 90 institutions to<br />

discuss trends, lessons learned, challenges and techniques<br />

on how to overcome them in four relevant areas:<br />

asset management, anti-corruption, leadership,<br />

and the training needs of accountants and auditors.<br />

We continued our support to public officials by<br />

raising awareness, deepening knowledge and exchanging<br />

international experience on the topic of<br />

public sector asset management. To ensure further<br />

support, we developed a new project and secured<br />

funding for its implementation through a three-year<br />

project “Efficient Public Sector Asset Management”<br />

(EPSAM), starting on January 1, 2022.<br />

Jasmina Popovič<br />

Program Officer and thematic area lead<br />

<strong>CEF</strong><br />

EVENTS<br />

Building a Public Sector Asset Register: Challenges and<br />

Recommendations<br />

PACT North Macedonia: Management Accounting<br />

PACT North Macedonia: Training of Trainers for Management<br />

Accounting Module<br />

PACT North Macedonia: National Module<br />

Implementation of FMIS<br />

The Role of Accounting and Data in Costing of Structural Reforms<br />

Accounting and Reporting of IPA Projects<br />

PACT North Macedonia: Graduation Ceremony<br />

Supporting Accounting and Auditing Developments and Synergies<br />

International Public Sector Accounting Standards – IPSAS<br />


• Public Sector Asset Management in the Republic of North Macedonia<br />

• Application of Selected Public Sector Accounting Standards in North<br />

Macedonia – Overview of International Practices<br />

• Public Accountants Certification Training in North Macedonia<br />

• The Role of Accounting in Costing of Structural Reforms - Case Study<br />

on the Slovak Republic<br />


• Ministry of Finance, Slovenia<br />

• Ministry of Foreign Affairs, Slovenia<br />


• CIPFA<br />

We are very proud<br />

to have expanded<br />

our partnership<br />

with the <strong>CEF</strong> in recent years.<br />

The conference highlighted<br />

the strong track record, personal<br />

connections and regional<br />

expertise that our <strong>CEF</strong><br />

colleagues have in SEE. We’re<br />

confident that working with<br />

<strong>CEF</strong> will make CIPFA’s training<br />

programmes that much more<br />

impactful, and deliver real benefits<br />

in the region. The joint<br />

<strong>CEF</strong>-CIPFA conference also<br />

highlighted the shared challenges<br />

and issues that we, as<br />

public finance professionals,<br />

experience in our field of work<br />

– regardless of location. More<br />

than 25 accounting and audit<br />

experts that participated in the<br />

conference programme underlined<br />

just how integrated many<br />

of the topics, such as asset<br />

management and anti-corruption,<br />

are across the sector.<br />

Khalid Hamid<br />

International Director<br />


32 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />



In <strong>2021</strong>, we introduced new<br />

topics in the audit program:<br />

applying insights of behavioral<br />

science in auditing and data<br />

visualization in audit <strong>report</strong>ing.<br />

Both webinars drew a large<br />

number of applicants and were<br />

well received by our colleagues<br />

in the region.<br />

EVENTS<br />

Applying Insights from Behavioral<br />

Science to Internal Audit<br />

We are also constantly expanding our collaboration<br />

with regional experts, like Ms. Aleksandra Vugrin<br />

from the Court of Audit, Slovenia, who shared<br />

her expertise and insights at the webinar Data Visualization<br />

in Audit Reporting. Her presentation provided participants<br />

with differing viewpoints on data visualization techniques<br />

and tools, as well as practical examples from Slovenia.<br />

The event Integrity in the Implementation of Structural Reforms<br />

was an innovation in the auditing program. We simulated<br />

an EU-awarded interactive game exercise that encouraged<br />

and motivated participants to enhance their ability to<br />

recognize the red flags of fraud. The concept of the game<br />

exercise ensured that everyone gained a deeper understanding<br />

of open source, intelligence and research database<br />

tools, data analytics and, most importantly, lifelike exercises<br />

and cases.<br />

Another particularly notable event was the hybrid workshop<br />

Audit Sampling. It was a combination of intensive theory,<br />

numerous practical cases, and interaction between lecturers<br />

and participants, both in the classroom and online.<br />

Participants were excited to jointly contribute to this new<br />

format, co-creating it with the experts and us.<br />

Arjonela Dedja<br />

Program Facilitator and thematic area lead<br />

<strong>CEF</strong><br />

Data Visualization in Audit<br />

Reporting<br />

Risk-Based <strong>Annual</strong> Planning<br />

Performance-Based Auditing<br />

Integrity in the Implementation<br />

of Structural Reforms<br />

Auditing Governance<br />

Audit Sampling<br />


• EU<br />

• Ministry of Finance, the Netherlands<br />

• Ministry of Finance, Slovenia<br />


• European Court of Auditors<br />

We have strong ties with<br />

the countries that share our<br />

constituencies at the IMF,<br />

World Bank and European Bank for Reconstruction<br />

and Development (EBRD).<br />

That’s why our ministry established the<br />

Constituency Program. This program enables<br />

us to support PFM reform in the<br />

countries, in particular in areas where<br />

our experts can provide genuine added<br />

value. In our program with the <strong>CEF</strong>, we<br />

focus on auditing and taxation. We make<br />

sure that our work with the <strong>CEF</strong> is aligned<br />

with our bilateral efforts in the countries.<br />

What I like most about the Constituency<br />

Program of the Dutch Ministry of Finance<br />

is the peer-to-peer angle. Our colleagues<br />

are more than willing to work with their<br />

constituency counterparts. Once I talked<br />

with an IMF resident representative in<br />

one of our countries, who thought that<br />

colleagues working together could add<br />

a lot to the work of international institutions.<br />

I think he is right.<br />

Angelique van Haasteren<br />

Technical Assistance Coordinator<br />

Ministry of Finance, the Netherlands

34 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


In <strong>2021</strong>, all learning activities were delivered in a<br />

virtual environment. Despite being connected with<br />

the participants and experts online only, we introduced<br />

a promising new initiative: we successfully launched a<br />

series of online meetings for developing a knowledge-sharing<br />

culture in tax administrations with <strong>CEF</strong> Tax Coordinators.<br />

Knowledge sharing is an important aspect of knowledge management<br />

that enhances organizational learning and employee<br />

performance and improves cooperation between organizations<br />

and individuals. Therefore, we decided to offer representatives<br />

of tax administrations the opportunity to recognize how such<br />

sources of value creation can be built in an institution.<br />

We took a step-by-step approach and identified the most<br />

crucial topics for bridging the gap in achieving institutional<br />

knowledge sharing. Then we addressed each topic separately.<br />

We put our participants in the center of the learning<br />

process. They co-created the agenda and we addressed their<br />

challenges during the meetings. Experts co-facilitated learning<br />

process and helped participants develop their ideas.<br />

Based on participant feedback, this methodology makes<br />

them think broader and opens new horizons. Due to its complex<br />

nature and the time needed for change, the initiative will<br />

continue also in 2022.<br />

Tax Policy and<br />

Administration<br />

Our tax policy and<br />

administration learning<br />

program continues to<br />

support public officials in<br />

strengthening capacities<br />

for increasing the<br />

efficiency and fairness of<br />

revenue administrations.<br />

Corresponding to the Covid-19<br />

pandemic, technology, and<br />

transparency developments<br />

that drive the modern age of<br />

tax, the program focuses also<br />

on digital security, e-services,<br />

communication, and<br />

performance management.<br />

EVENTS<br />

Tax Coordinators’ Meeting –<br />

Developing Knowledge Sharing<br />

Culture (two events)<br />

Managing Compliance Risks after<br />

the Covid-19 Pandemic<br />

Delivering Quality Services<br />

Remotely<br />

Measuring Tax Administrations’<br />

Functional Performance<br />

Strengthening Tax Auditors’<br />

Capability – Basic Skills<br />

Implementation of a High-Wealth<br />

Individual Tax Compliance Program<br />

Improving Communication Skills in<br />

Tax Auditing Process<br />

Strategy-Setting for Domestic<br />

Revenue Mobilization (DRM)<br />


• EU<br />

• IMF<br />

• Ministry of Finance,<br />

the Netherlands<br />

• Ministry of Finance, Slovenia<br />

• SECO<br />


• Ministry of Finance and<br />

Economy, Albania<br />

• National Bank of Moldova<br />

• OECD<br />

• Overseas Development Institute<br />

(ODI)<br />

• Tax Administration of Kosovo<br />

Maja Tomšič Pavlič<br />

Program Specialist and thematic area lead<br />


36 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


Central Banking<br />

In our program for central banks and<br />

financial supervisory authorities,<br />

we especially focused on prudential<br />

regulation and supervision connected<br />

to actual and future challenges.<br />

EVENTS<br />

Cyber Security Risk Supervision<br />

<strong>CEF</strong> Coordinators Meeting on Learning at<br />

Central Banks<br />

Innovation in Payments<br />

Governance and Supervision in Banks and<br />

Financial Market Institutions<br />

Unwinding Covid-19 Policy Interventions<br />

for Banking Systems<br />

Interest Rate Benchmark Reforms<br />

Bank Business Model Analysis<br />

Financial Stability and Stress Testing<br />


• Banka Slovenije<br />

• Ministry of Finance, Slovenia<br />


• Central Bank of the Republic of Turkey<br />

• De Nederlandsche Bank<br />

• European Central Bank<br />

• IMF<br />

• Magyar Nemzeti Bank<br />

• National Bank of Belgium<br />

• National Bank of Moldova<br />

• National Bank of the Republic of North Macedonia<br />

• The Block<br />

At the events organized in <strong>2021</strong>, we<br />

discussed the topics of climate and<br />

environmental risks as well as other<br />

trends, like digitalization, low-interest-rate environment<br />

and their implications on bank business models.<br />

At the event on financial stability and stress<br />

testing, we provided insights into the impacts of the<br />

Covid-19 pandemic. For prudential supervisors and<br />

financial market infrastructure experts, we organized<br />

an extensive online course on cyber security.<br />

We also held a webinar to examine and share<br />

countries’ prospects of unwinding policy measures<br />

taken due to Covid-19. Another webinar was dedicated<br />

to the reforms and updates on benchmark<br />

interest rates. We also reviewed the fast-changing<br />

infrastructure of financial markets by discussing<br />

payment innovations, fintech, and crypto assets as<br />

well as the current projects of central banks on the<br />

introduction of digital currencies.<br />

Matija Čarman<br />

Program Specialist and thematic area lead<br />


38 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


In <strong>2021</strong>, we designed and implemented a series of<br />

learning activities in the area of assessment of countries’<br />

economic impact of structural reforms. It was<br />

targeted at line ministries and ministries of finance, with participants<br />

coming also from other institutions in the EU candidate<br />

countries and potential candidates. We started with a regional<br />

workshop, focusing more on real-life approach examples that<br />

can be taken in light of the various type of reforms, policy areas<br />

and data availability. For this, we implemented country-specific<br />

workshops where participants were encouraged to make qualitative<br />

and quantitative impact estimations of structural reforms<br />

introduced in their countries’ ERPs, supported by a discussion<br />

with an expert.<br />

A very important aspect of DAP is also integrating social learning<br />

principles into our activities. At the event Macroeconomic<br />

Modeling For Open Economies 1, we complemented the training<br />

focused on building the technical skills, required to develop a dynamic<br />

stochastic general equilibrium (DSGE) model of an economy,<br />

with a knowledge-sharing consultations session. Participants<br />

presented their ongoing work in DSGE modeling and consulted<br />

with the expert and other participants on a concrete challenge.<br />

This way, we acknowledge participants as experts and provide<br />

them with the platform to learn from each other’s experiences.”<br />

Data and<br />

Analysis<br />

for Designing<br />

Policies<br />

One of the objectives of the<br />

Data and Analysis for Designing<br />

Policies (DAP) learning program<br />

is to promote the importance<br />

of an evidence-informed<br />

approach to policymaking.<br />

It is a cross-cutting thematic<br />

area, addressing finance<br />

officials across all public<br />

institutions dealing with the<br />

compilation and dissemination<br />

of macroeconomic statistics,<br />

or carrying out macro/<br />

microeconomic analysis and<br />

forecasting.<br />

EVENTS<br />

Macroeconomic Modeling for<br />

Open Economies 1<br />

Structural Reforms and<br />

Assessment of Their Economic<br />

Impact<br />

Beyond Fiscal Implications of<br />

Structural Reforms*<br />

Translation of Financial<br />

Statements into Statistics<br />

Economic Analysis and<br />

Forecasting with Micro-Data<br />

* Six events organized for Albania, Bosnia<br />

and Herzegovina, Kosovo, Montenegro and<br />

Serbia, North Macedonia and Turkey<br />


• Banka Slovenije<br />

• EU<br />

• Ministry of Finance, Slovenia<br />



• Banque de France<br />

• European Central Bank<br />

• Eurostat<br />

• IMF<br />

• Institute of Macroeconomic<br />

Analysis and Development,<br />

Slovenia<br />

• National Bank of Moldova<br />

Nina Agić<br />

Senior Program Officer and thematic area lead<br />


40 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


<strong>CEF</strong> – 20 YEARS OF CAPACITY DEVELOPMENT IN SEE<br />

In 20 years, the <strong>CEF</strong>, together with our extended<br />

community of members, learners, Coordinators,<br />

experts, donors, partners, and other friends<br />

accomplished quite a journey.<br />


98 EVENTS<br />


3<br />

Today, the <strong>CEF</strong> is a learning organization and a regional knowledge hub.<br />

We deliver value to our constituency through practices that have evolved<br />

over the 20 years.<br />

Our 33 staff members are experts in learning that collaborate with over<br />

200 experts, half of them coming from SEE. These leading professionals<br />

in their fields are crucial in providing lectures and practitioners’ expertise<br />

to our learning and knowledge sharing program.<br />

In 2001, the <strong>CEF</strong> had three staff members and 46 experts working with<br />

us. Initially, we were an organizer of training courses for six constituency<br />

members from SEE. By 2016 the <strong>CEF</strong>’s constituency grew already to 12<br />

countries in the region.<br />

To meet the changing needs of our learners, we have recognized the value<br />

of a stimulating learning environment, be it physical or online. Having<br />

our own platform developed for online learning became crucial in 2020.<br />

The Covid-19 pandemic required us to shift all our program delivery to<br />

an online format.<br />

We have always worked on these basic principles: adapt to the ever-changing<br />

environment and its challenges, and nurture networking and<br />

ownership through partnerships and participation of the entire <strong>CEF</strong> community.<br />

All of this will be even more observed in the future, as demonstrated<br />

in our Strategic Direction 2022–2026.<br />

EVENTS<br />

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 <strong>2021</strong>

42 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />



Our governance structure consists of the<br />

Governing Board, the Advisory Board,<br />

the Coordinators, and the Secretariat<br />

with distinct and complementary goals<br />

and responsibilities.<br />

Governing Board<br />

Ministers, Governors and<br />

heads of other relevant<br />

institutions, or their nominated<br />

representatives and up to<br />

three representatives of the<br />

Advisory Board<br />

Decision Making<br />

Body<br />

Advisory Board<br />

Advisory group of experts<br />

from donor and partner<br />

institutions<br />

Advisory<br />

Consultative<br />

Bodies<br />

Coordinators<br />

Representatives of<br />

constituency institutions<br />

responsible for human<br />

capacity development

44 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


Governing Board<br />

The Governing Board is the <strong>CEF</strong>’s<br />

principal decision-making and governing<br />

body. It is entrusted with the guidance of<br />

our strategic direction and our activities,<br />

as well as reviewing progress, annual<br />

<strong>report</strong>s and financial statements.<br />

MEMBERS OF THE <strong>CEF</strong> GOVERNING BOARD (APRIL 30, 2022)<br />

Delina Ibrahimaj, Minister<br />

Ministry of Finance and Economy, Albania<br />

Gent Sejko, Governor<br />

Bank of Albania<br />

Assen Vassilev, Minister<br />

Ministry of Finance, Bulgaria<br />

Fatmir Besimi, Minister<br />

Ministry of Finance, North Macedonia<br />

Anita Angelovska Bezhoska, Governor National Bank of the Republic of North Macedonia<br />

Dumitru Budianschi<br />

Ministry of Finance, Moldova<br />

Octavian Armaşu, Governor<br />

National Bank of Moldova<br />

It is independent and autonomous in its decisions and<br />

brings together ministers of finance and/or governors of<br />

central banks from the <strong>CEF</strong> member countries: Albania,<br />

Bulgaria, Moldova, Montenegro, North Macedonia,<br />

Romania, and Slovenia. Additionally, it includes up to<br />

three representatives of the Advisory Board.<br />

Following the meeting on June 8, <strong>2021</strong>, the Chairing of<br />

the <strong>CEF</strong> Governing Board was passed to the Slovenian<br />

Minister of Finance, Mr. Andrej Šircelj. As in 2020,<br />

the meeting was virtual due to the ongoing Covid-19<br />

pandemic. Two other meetings were held in <strong>2021</strong>.<br />

Aleksandar Damjanović, Minister<br />

Radoje Žugić, Governor<br />

Dan Vîlceanu, Minister<br />

Mugur Isărescu, Governor<br />

Andrej Šircelj, Minister<br />

Boštjan Vasle, Governor<br />

Mateja Vraničar Erman, Senior Adviser<br />

Birger Nerré<br />

Martin Polónyi, Director General<br />

Ministry of Finance and Social Welfare, Montenegro<br />

Central Bank of Montenegro<br />

Ministry of Finance, Romania<br />

National Bank of Romania<br />

Ministry of Finance, Slovenia<br />

Banka Slovenije<br />

Ministry of Foreign Affairs, Slovenia<br />

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)<br />

Ministry of Finance, Slovakia<br />

<strong>CEF</strong>’s governance structure is unique<br />

and reflects how we approach our work<br />

and who we involve in delivering our<br />

mandate. Ministers of finance, governors of central<br />

bank, their representatives involved in human resources<br />

and partners may be ever changing, nevertheless,<br />

they - together with the Secretariat - jointly<br />

assure transparency, accountability, inclusiveness<br />

and responsiveness, which are the cornerstones of<br />

<strong>CEF</strong>’s good governance.<br />

I am particularly proud of our collaborative and iterative<br />

approach to developing our new strategic direction<br />

with interested members of our governing and<br />

advisory boards, coordinators and partners throughout<br />

last years. They brought valuable perspectives<br />

and input that will guide the <strong>CEF</strong> in the next years.<br />

Irena Lukač<br />

Chief Partnership Officer<br />


46 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />



The <strong>CEF</strong> Strategic Direction 2022–2026 was confirmed<br />

by the Governing Board on June 8, <strong>2021</strong>.<br />

The initial planning phase to elaborate our strategic<br />

objectives started already in 2020. We discussed<br />

the background and draft outline in bilateral<br />

consultations with the Governing Board, the<br />

Advisory Board and the <strong>CEF</strong> Coordinators. They<br />

gave us very valuable input and a solid foundation<br />

for mapping our strategic priorities and ways<br />

to assist our member institutions in reaching their<br />

goals.<br />

Our vision is to inspire public officials, both individuals<br />

and teams, to shape institutional governance<br />

that drives successful economies and fair societies.<br />

This vision puts forward inspiration – for learning,<br />

governing, and advancement. It also maintains<br />

our work in serving as leaders in learning<br />

for public officials. Both of these two aspirations<br />

rest on trust in people and their ability to shape<br />

governance. Our target audience remains central<br />

banks, ministries of finance, tax administrations,<br />

line ministries, and also other public institutions.<br />

With this strategic document, we address:<br />

• the narrative for the region in 2026<br />

• vision and mission<br />

• value-added: know-how on becoming and being<br />

a learning organization<br />

• focus areas of impact<br />

• partnerships<br />

• internal environment<br />

• resources and risks<br />

• monitoring, evaluation and learning<br />

• the results framework and theory of change<br />

We also consulted with several institutions that<br />

contributed to the <strong>CEF</strong>’s understanding of priorities<br />

for the next years: the Energy Community,<br />

the European Centre for Development Policy Management<br />

(ECDPM), the European Commission,<br />

the IMF, the ODI, OECD, the Regional Cooperation<br />

Council, Regional School of Public Administration<br />

(ReSPA), the Joint Vienna Institute, and the Transport<br />


48 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


Advisory Board<br />


ODI really values the partnership<br />

with <strong>CEF</strong> and there is a lot<br />

of potential to deepen our cooperation<br />

in the future. It offers an opportunity<br />

to bridge international and national<br />

debates on economic and fiscal management<br />

in some new and exciting ways.<br />

ODI’s research can offer a fresh perspective<br />

on what constitutes “best practice” in<br />

different countries. For example, we have<br />

particular expertise on the capabilities<br />

that support an effective finance ministry,<br />

a strong budget office or ministry finance<br />

function, and a good tax policy making process.<br />

These may be useful for <strong>CEF</strong>’s members<br />

as they try to make sense of international<br />

experiences and implement reforms.<br />

On the other hand, I believe <strong>CEF</strong> and its<br />

partners have lessons that many other in<br />

Africa, Asia, and other regions would like to<br />

hear about.<br />

Sierd Hadley<br />

Research Fellow<br />

ODI<br />

The <strong>CEF</strong> Secretariat has strong<br />

support from an advisory group of<br />

experts, consisting of our donors and<br />

partners. They provide knowledge,<br />

critical thinking, analysis, and their<br />

understanding of the relevant<br />

topics in the region and broader.<br />

By advising on the relevance of the<br />

<strong>CEF</strong> program for our beneficiary<br />

institutions, they increase the impact<br />

of the <strong>CEF</strong>’s learning and knowledgesharing<br />

program.<br />

The Advisory Board has currently three representatives<br />

in the Governing Board from the<br />

GIZ, the Ministry of Finance, Slovakia, and the<br />

Ministry of Foreign Affairs, Slovenia. The chair<br />

of the Advisory Board is Ms. Mateja Vraničar<br />

Erman from the Slovenian Ministry of Foreign<br />

Affairs*. The annual meeting of the Advisory<br />

Board was organized as a hybrid event on October<br />

6, <strong>2021</strong>. At the <strong>2021</strong> meeting, we welcomed<br />

a new member to the board, Mr. Sierd<br />

Hadley, Research Fellow at the ODI.<br />

*Former Chair, Ms. Andreja Jerina, retired in early 2022.<br />


AT THE <strong>2021</strong> ADVISORY BOARD MEETING<br />

• GIZ<br />

• Ministry of Finance, the Netherlands<br />

• Ministry of Finance, Slovakia<br />

• Ministry of Foreign Affairs, Slovenia<br />

• National Bank of Belgium<br />

In the past 20 years, our partnerships significantly<br />

contributed to achieving more than we could on<br />

our own. We partner with multilateral and bilateral<br />

organizations, knowledge institutions, and peer organizations.<br />

They are invaluable in the implementation<br />

of our learning and knowledge-sharing program by<br />

providing resources and expertise. Together we foster<br />

collaboration, synergize on each other’s strengths<br />

and as such, set a good example for the region. Our<br />

exchange of expertise and widening the networks<br />

also mutually amplify our efforts for improving structural<br />

reforms in the region.<br />

We keep regular contact with our partners. In <strong>2021</strong>,<br />

we had to again meet online for our annual after-<br />

New-Year gathering, organized as a series of virtual<br />

meetings with selected institutions. This year, <strong>CEF</strong><br />

also signed a Memorandum of Understanding with<br />

the Regional Cooperation Council (RCC).<br />



Since signing a Memorandum of Understanding<br />

in 2017, the IMF and the <strong>CEF</strong> have further<br />

strengthened the partnership. We complement<br />

each other’s work by exchanging our knowledge<br />

of the regional needs and addressing them by<br />

joining our institutional expertise and experience.<br />

We combine our learning and knowledge-sharing<br />

program with the IMF’s country-specific<br />

capacity development programs<br />

and projects, thus supporting institutions and<br />

countries in developing mechanisms for growth.<br />

Many of the <strong>CEF</strong> courses are co-delivered with<br />

the IMF regional advisors for SEE or colleagues<br />

from the IMF headquarters. In <strong>2021</strong> <strong>CEF</strong> hosted<br />

two IMF Fiscal Affairs Department (FAD) Regional<br />

Advisors for PFM and revenue administration.<br />

Their work is presented in the Appendix.<br />

The IMF’s Fiscal Affairs Department (FAD)<br />

and the <strong>CEF</strong> have continued to collaborate<br />

in addressing the Southeast Europe<br />

(SEE) region’s capacity development (CD) challenges.<br />

The overarching goal is to help the SEE countries to<br />

strengthen their fiscal institutions, aligned with international<br />

good practices. This is critical for these countries<br />

to achieve macroeconomic stability and sustainable<br />

growth, mobilize revenue to finance expenditure<br />

policies, and implement essential structural reforms<br />

across government areas. In <strong>2021</strong>, we worked together<br />

to provide responsive and agile CD to address the<br />

specific challenges arising from the COVID-19 pandemic<br />

and to prepare for the recovery phase.<br />

The FAD-<strong>CEF</strong> cooperation leverages longstanding<br />

relations between FAD and the respective SEE countries<br />

in modernizing their public financial management<br />

(PFM) and revenue administration (RA) institutions<br />

and <strong>CEF</strong>’s work with the countries that focuses<br />

on regional learning. We therefore look forward to the<br />

continued collaboration including by further increasing<br />

synergies across the region.<br />

Vitor Gaspar<br />

Director<br />

Fiscal Affairs Department, IMF

50 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />




Partners’ contributions in cash are recorded and <strong>report</strong>ed in the<br />

<strong>CEF</strong>’s financial statements. The in-kind contributions that are not<br />

recorded and <strong>report</strong>ed in the financial statements are shown in the<br />

table below. Several partner institutions and donors sponsor lecturers<br />

(travel expenses and lecturing fees) for their engagement in<br />

<strong>CEF</strong> learning activities.<br />

For this <strong>report</strong>, a lecturing day is estimated at EUR 1,000 (including<br />

the preparation time). Travel expenses are estimated to be EUR<br />

1,500 based on historical data, whereby sending institutions cover<br />

travel expenses in 50% of cases. A weighted travel lump sum of<br />

EUR 750 is hence applied to all individual expert engagements.<br />

Not listed in the table below is an additional in-kind contribution<br />

of the Ministry of Finance of North Macedonia estimated at EUR<br />

20,736 (total for 2020 and <strong>2021</strong> together), i.e. for the additional<br />

time allocated by a local coordinator and provision of local learning<br />

and meeting space to implement the PACT project.<br />

Institution<br />

TOTAL<br />

days<br />


EUR<br />


Development Bank of Latin America 2.00 2,000<br />

European Central Bank 3.50 3,500<br />

European Commission and Delegations of the EU in SEE 14.75 14,750<br />

European Court of Auditors 2.75 2,750<br />

Eurostat 2.50 2,500<br />

IMF 32.00 32,000<br />

Joint Vienna Institute 2.00 2,000<br />

OECD 8.00 8,000<br />

Regional Anti-Corruption Initiative 1.00 1,000<br />

The World Bank Group 1.25 1,250<br />

UNI<strong>CEF</strong> 0.75 750<br />


Institution<br />

TOTAL<br />

days<br />


EUR<br />

<strong>CEF</strong> CONSTITUENCY INSTITUTIONS 29.75 29,750<br />

Ministry of Finance and Economy, Albania 2.25 2,250<br />

Directorate for Economic Planning, Bosnia and Herzegovina 0.75 750<br />

Ministry of Physical Planning, Construction and State Assets, Croatia 2.75 2,750<br />

State Audit Office, Croatia 1.00 1,000<br />

Tax Administration of Kosovo (and other government institutions) 0.75 750<br />

National Bank of Moldova 3.75 3,750<br />

Ministry of Finance and Social Welfare, Montenegro 0.75 750<br />

Faculty of Economics Skopje, North Macedonia 0.75 750<br />

Ministry of Finance, North Macedonia 1.25 1,250<br />

State Audit Office, North Macedonia 1.50 1,500<br />

Ministry of Finance, Serbia (and other government institutions) 0.75 750<br />

Banka Slovenije 0.75 750<br />

Financial Administration of the Republic of Slovenia 0.50 500<br />

Institute of Macroeconomic Analysis and Development, Slovenia 1.00 1,000<br />

Ministry of Foreign Affairs, Slovenia 2.00 2,000<br />

Ministry of Public Administration, Slovenia 2.00 2,000<br />

Central Bank of Turkey 3.25 3,250<br />

Presidential Strategy and Budget Office, Turkey 2.00 2,000<br />

Others* 2.00 2,000<br />


AFROSAI-E, South Africa 2.00 2,000<br />

Banque de France 9.50 9,500<br />

CIPFA, United Kingdom 5.00 5,000<br />

De Nederlandsche Bank 0.50 500<br />

Magyar Nemzeti Bank 0.50 500<br />

Ministry of Finance, Netherlands 14.75 14,750<br />

Ministry of Finance, Saudi Arabia 1.00 1,000<br />

Ministry of Finance, Slovakia 0.50 500<br />

National Bank of Belgium 2.00 2,000<br />

ODI, United Kingdom 2.50 2,500<br />

The Block, United States of America 1.00 1,000<br />

The Vienna Institute for international Economic Studies, Austria 2.00 2,000<br />

Università Cattolica del Sacro Cuore, Italy 4.50 4,500<br />

Others** 0.75 750<br />

TOTAL 155.5 155,500<br />

* National Bank of North Macedonia; National Bank of Romania; Court of Audit, Slovenia; Eko Sklad, Slovenia; Faculty of Social Sciences, Slovenia;<br />

Institute for Economic Research, Slovenia; Office of the Government of Slovenia for Digital Transformation; Statistical Office, Slovenia<br />

** Foresight Centre, Estonia; Hungarian State Treasury; Ministry of Interior and Administration, Poland

52 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


Coordinators<br />

Coordinators are appointed<br />

representatives of our constituency’s<br />

ministries of finance, central<br />

banks and tax administrations,<br />

responsible for capacity development<br />

and strategic human resources<br />

management in their institutions.<br />

They are the cornerstone of our close collaboration<br />

with the region and a crucial link to our deeper<br />

understanding of the learning needs of individuals,<br />

teams and institutions within our constituency.<br />

Together with the Governing Board, the Coordinators<br />

help us identify the capacity development<br />

priorities. This way we can develop the learning<br />

program relevant to our constituency as well as to<br />

the processes and developments within a broader<br />

geographical context.<br />

The <strong>CEF</strong> and its Coordinators meet every two years<br />

to exchange ideas and good practices in learning,<br />

and to discuss how they could be part of the <strong>CEF</strong><br />

learning and knowledge sharing program.<br />

In <strong>2021</strong>, as part of the <strong>CEF</strong> 20th anniversary celebration, we met<br />

with the Coordinators to celebrate our journey so far and share ideas<br />

and the vision for the future. At the meeting, once more held online,<br />

we highlighted our joint achievements and key milestones. We discussed<br />

the plans and Coordinator’s roles in planned activities, especially<br />

in light of the new Strategic Direction 2022–2026. We also<br />

highlighted the importance of institutional knowledge management<br />

and strategic human resource function.<br />

By introducing the <strong>CEF</strong> model of a learning organization to public<br />

institutions, we are convinced that we can jointly empower public<br />

officials as confident leaders to support and enforce the needed reforms<br />

in their teams and institutions.<br />

<strong>CEF</strong> COORDINATORS (APRIL 30, 2022)<br />

Vasilika Vjero<br />

Ministry of Finance and Economy, Albania<br />

Gramoz Kolasi<br />

Bank of Albania<br />

Olisa Osmani<br />

General Taxation Directorate, Albania<br />

Sehija Mujkanović<br />

Ministry of Finance and Treasury, Bosnia and Herzegovina<br />

Almir Salihović<br />

Central Bank of Bosnia and Herzegovina<br />

Denisa Seho<br />

Indirect Taxation Authority of Bosnia and Herzegovina<br />

Amela Kazazić<br />

Tax Administration of the Federation of Bosnia and Herzegovina<br />

Sandra Kovačević<br />

Tax Administration of Republic of Srpska, Bosnia and Herzegovina<br />

Galina Tzekova<br />

Ministry of Finance, Bulgaria<br />

Stoyan Bozhkov<br />

Bulgarian National Bank<br />

Boryana Yankova-Sharkova National Revenue Agency, Bulgaria<br />

Andrea Kocelj<br />

Ministry of Finance, Croatia<br />

Marija Lončar<br />

Ministry of Finance, Tax Administration, Croatia<br />

Orhan Devaja<br />

Ministry of Finance, Labor and Transfers, Kosovo<br />

Syzana Mahmutaj<br />

Central Bank of the Republic of Kosovo<br />

Floransa Sahiti<br />

Tax Administration of Kosovo<br />

Tatiana Onici<br />

Ministry of Finance, Moldova<br />

Natalia Zabolotnii<br />

National Bank of Moldova<br />

Silvia Caitaz<br />

State Tax Service, Moldova<br />

Šućo Orahovac<br />

Ministry of Finance and Social Welfare, Montenegro<br />

Ana Šćepanović<br />

Central Bank of Montenegro<br />

Lidija Šećković<br />

Revenue Administration, Montenegro<br />

Magdalena Simonovska Ministry of Finance, North Macedonia<br />

Aleksandra Kacarski National Bank of the Republic of North Macedonia<br />

Aleksandra Kacarski Public Revenue Office, North Macedonia<br />

Emanuel-Alex Constantin Ministry of Public Finance, Romania<br />

Mugur Tolici<br />

National Bank of Romania<br />

Costin Naghi<br />

National Agency for Fiscal Administration, Romania<br />

Bojana Drobnjak<br />

National Bank of Serbia<br />

Snezana Ilić<br />

Tax Administration, Serbia<br />

Sanja Pregl<br />

Banka Slovenije<br />

Nataša Marušič Kuhar Financial Administration of the Republic of Slovenia<br />

Taşkın Babaoğlan<br />

Presidency of The Republic of Turkey, Presidency of Strategy and Budget<br />

Arzu Hancı Karademirci Central Bank of the Republic of Turkey

54 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


Secretariat<br />

The <strong>CEF</strong> Secretariat, comprised<br />

of the director, staff and experts,<br />

ensures that the responsibilities<br />

are met and our day-to-day<br />

activities are carried out.<br />

<strong>CEF</strong> CORE VALUES<br />

In our work we follow core values that we have defined together. We are developing coaching<br />

and mentoring culture by seeing the value and taking responsibility for developing ourselves<br />

and supporting capacity development of others.<br />

The 33 <strong>CEF</strong> team members come from<br />

Albania, Georgia, Germany, North Macedonia,<br />

Serbia, Slovenia and Turkey. Such an<br />

international and diverse team brings invaluable<br />

experiences to our programming<br />

and work. This also enables us to communicate<br />

with most of the region in their native<br />

languages. In addition, we have nine affiliated<br />

experts and two IMF regional capacity<br />

development advisors and their interpreter,<br />

the latter three working at the <strong>CEF</strong>.<br />

TRUST<br />

We trust ourselves<br />

and each other<br />

in our goal to<br />

deliver highquality<br />

programs,<br />

support regional<br />

cooperation, and<br />

work effectively with<br />

our partners.<br />


We respect, accept<br />

and support each<br />

other in combining<br />

our diverse roles<br />

and capacities.<br />


We set clear and<br />

measurable goals<br />

with specific<br />

action plans and<br />

efficient use of<br />

resources, while<br />

also considering<br />

staff interests and<br />

capabilities.<br />


TO GROW<br />

We are committed<br />

to support an<br />

environment<br />

where we grow as<br />

individuals and<br />

team(s).<br />


By aligning<br />

our personal<br />

integrity with clear<br />

organizational<br />

expectations, we<br />

take responsibility<br />

for what we do,<br />

how we do it and<br />

how this affects the<br />

world around us.<br />

As this <strong>report</strong> shows, we design<br />

and deliver increasingly<br />

complex learning and knowledge<br />

sharing activities that are impactful<br />

not only at the individual but also teams<br />

and institutional level. Our capacity in this<br />

regard has been growing with our readiness<br />

to embrace each other’s unique<br />

strengths and learn from each other, and<br />

from closer engaging a growing number<br />

of experts and knowledge partners in<br />

co-creating our program. Jointly, we assure<br />

better quality, monitor and evaluate<br />

our work, and feed lessons learned into<br />

our future program.<br />

Robert Bauchmüller,<br />

Chief Program Officer<br />


56 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />



At the <strong>CEF</strong>, we aim to balance environmental, social and governance aspects – for our institution,<br />

our partners, donors and beneficiaries, and society at large.<br />

We understand that corporate social responsibility directly impacts trust, identification, well-being,<br />

and green behavior. Consequently, organizational trust and identification directly influence<br />

employee well-being and behavior. With this in mind, we remain highly committed to pursuing<br />

environmental and social sustainability, as well as enhancing the well-being of our team. While<br />

we try to set a good example in the environment and the social landscapes where we operate, we<br />

also learn from the best practices of others.<br />

Despite the Covid-19 pandemic still having a great effect on our work, in <strong>2021</strong> we organized<br />

many activities to improve the well-being of others and our team members. Here are some of the<br />

highlights.<br />

Broader impact initiatives:<br />

• Blood donation<br />

• Supporting Pink October movement<br />

• December holiday activities: donations and presents to children in need, and writing greeting<br />

cards to the residents of the elderly and retirement homes<br />

• Furniture donation to Tabor Primary School in Logatec and to Ljubljana Pride Association<br />

Internal initiatives:<br />

• <strong>CEF</strong> commuter challenge (cycling to the office)<br />

• Taking part in the Ljubljana Marathon<br />

• Easter day cookie baking for the team<br />

• Hike to Polhograjska Grmada<br />

• Delivering appreciation packages to staff members infected by Covid-19<br />

We also put great emphasis on evolving our work culture in a way that enables and motivates the<br />

team members to create, systemize, transfer, use, and leverage knowledge. To achieve this, we<br />

develop and nurture standards, values and skills that build trust, confidence and engagement.<br />

We regularly attend external trainings, conferences and other learning events. Every two weeks,<br />

we exchange experiences internally or invite guests from other organizations to expand our horizons<br />

and challenge our perspectives. In <strong>2021</strong>, we organized 25 such events: 10 external knowledge-sharing<br />

sessions, 12 internal knowledge-sharing sessions, and 3 team retreats.<br />

We also advocate and endorse healthy work-life balance by offering several health-promoting<br />

opportunities. Due to the health measures taken because of Covid-19 in <strong>2021</strong>, many activities<br />

were put on hold or carried out in a limited capacity. We look forward to fully resuming them once<br />

the circumstances allow.<br />

In addition, we stimulate positive organizational culture by regularly monitoring the quality of the<br />

relationship between the employees and their organization. We take part in external and internal<br />

surveys measuring the satisfaction of team members on different levels. In <strong>2021</strong>, we also upgraded<br />

our work environment to support our innovative learning approaches, meet the growing need<br />

for hybrid events, and accommodate our agile work style.<br />


Our activities support the realization of Sustainable Development Goals (SDGs) that are part<br />

of the Agenda 2030 for Sustainable Development. The <strong>CEF</strong> activities support particularly the<br />

following two goals: SDG 16 and SDG 17.<br />

We are supporting all three dimensions and most of the thirteen priority areas laid out by the<br />

SEE 2030 Strategy, a joint call for action by all 13 SEE economies agreed in Antalya in June<br />

<strong>2021</strong>. By contributing to strengthened economic and financial governance of our constituency,<br />

taking a people-centered approach to adult learning, and developing and delivering<br />

our program in close cooperation with many partners, we support sustainable development<br />

in line with the dimensions of prosperity, people, and peace and partnerships respectively.<br />


All <strong>CEF</strong> learning and knowledge-sharing activities are intended to improve the capacities of public<br />

officials to facilitate their work performance. The final goal is to support the officials, their<br />

public financial management, tax policy and administration, and central banking reform efforts<br />

and, as a consequence, build effective, accountable and inclusive institutions at all levels.<br />


On the way towards the realization of the SDGs, the <strong>CEF</strong> is partnering with multilateral and<br />

bilateral organizations, knowledge institutions, peer organizations, finance ministries, line<br />

ministries, central banks and other institutions from our constituency. The partners share<br />

our commitment to the region’s reform efforts. This strong and reliable partner network creates<br />

valuable synergies in implementing international development cooperation and thus<br />

accelerates progress in the realization of the SDGs.

58 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />




60 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


Responsibility<br />

for the financial<br />

statements<br />

The Management is responsible for ensuring that<br />

the financial statements are prepared for each financial<br />

period in accordance with the International<br />

Financial Reporting Standards (IFRS), which give a<br />

true and fair view of the state of affairs and results<br />

of the <strong>CEF</strong>.<br />

After making enquiries, the Management has a reasonable<br />

expectation that the <strong>CEF</strong> has adequate resources<br />

to continue in operational existence for the<br />

foreseeable future. For this reason, the Management<br />

continues to adopt the going concern basis<br />

in preparing the consolidated financial statements.<br />

In preparing those financial statements, the responsibilities<br />

of Management include ensuring that:<br />

• suitable accounting policies are selected and<br />

then applied consistently<br />

• judgments and estimates are reasonable and<br />

prudent<br />

• applicable accounting standards are followed,<br />

subject to any material departures disclosed and<br />

explained in the consolidated financial statements<br />

and<br />

• the financial statements are prepared on the going<br />

concern basis.<br />

Management is responsible for keeping proper accounting<br />

records, which disclose with reasonable<br />

accuracy at any time, the financial position of the<br />

<strong>CEF</strong> and its financial performance. The Management<br />

is also responsible for safeguarding the assets<br />

of the <strong>CEF</strong>, and hence, for taking reasonable<br />

steps for the prevention and detection of fraud and<br />

other irregularities.<br />

The conclusion of a year is always an opportunity to look back and<br />

reflect.<br />

We are very pleased with our performance in yet another challenging year. Despite<br />

the ongoing uncertainties caused by Covid-19, we successfully secured the<br />

financial stability of our essential operations and maintained reserves. This was<br />

largely possible due to the good relationships we have built with our partners in<br />

the past 20 years. We are grateful for the trust they have in us and our competencies<br />

to deliver the program even in less favorable circumstances, as well as in our<br />

prudent use of funds.<br />

Embracing the new realities, we equipped our classrooms to offer a hybrid experience<br />

for our participants. The technology enables online and face-to-face participants<br />

and experts to experience both environments and interact with each other.<br />

It is an investment that will benefit many future participants unable to participate<br />

in our events in person due to their institutions’ budgets and other limitations.<br />

<strong>CEF</strong>’s dynamic pace of work also required the adaptation of our office space. We<br />

reduced the number of offices and increased the number of common areas to<br />

improve our work agility, performance and well-being.<br />

I’m grateful for all the accomplishments we achieved together with our extended<br />

<strong>CEF</strong> community in <strong>2021</strong> and look to the coming periods with optimism and excitement.<br />

Ivana Nedižavec Korada<br />

Deputy Director<br />


62 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />


1. Financial statements<br />


Items<br />

Note<br />

December<br />

31, <strong>2021</strong><br />

EUR<br />

December<br />

31, 2020<br />

Non-current assets 659,011 696,803<br />

Intangible assets 1 24,839 34,154<br />

Property, plant and equipment 2 634,171 662,649<br />

Current assets 2,308,449 2,357,657<br />

Trade receivables 3 65,744 75,508<br />

Cash and cash equivalents 4 2,242,706 2,282,149<br />

Prepayments and other assets 5 655,436 47,543<br />

TOTAL ASSETS 3,622,896 3,102,004<br />

Equity 1,401,802 1,409,949<br />

Share capital (Founder's funds) 6 4,173 4,173<br />

Capital surplus 6 225 225<br />

Fair value reserve 6 -80,332 -38,491<br />

General reserves 6 1,477,736 1,444,042<br />

EUR<br />

Items Note <strong>2021</strong> 2020<br />

Revenue from program 11 2,446,709 2,338,116<br />

Other revenue 42,044 679<br />

Total revenue 2,488,753 2,338,795<br />

Cost of materials 13 77,473 57,957<br />

Cost of services 14 704,344 636,754<br />

Labor costs 15 1,580,384 1,438,499<br />

Depreciation and amortization costs 16 78,664 69,846<br />

Other operating expenses 17 10,142 13,219<br />

Other expenses 19 2,695 0<br />

Total expenses 2,453,701 2,216,275<br />

Financial income 12 143 5,479<br />

Financial costs 18 1,501 2,924<br />

<strong>Annual</strong> result 33,694 125,075<br />

Provisions and long-term accrued costs and deferred revenue 952,676 926,171<br />

Provisions 7 293,574 229,277<br />

Long-term accrued costs and deferred revenue 8 659,102 696,895<br />

Operating liabilities 305,359 146,732<br />

Trade payables 9 145,403 16,847<br />

Liabilities to employees 9 138,673 125,661<br />

Other short-term payables 9 21,284 4,223<br />

Advances payable and other current liabilities 10 963,058 619,151<br />

TOTAL EQUITY AND LIABILITIES 3,622,896 3,102,004<br />

Accounting policies and notes are an integral part of these financial statements<br />

and should be read in conjunction with them.<br />


Comprehensive income<br />

Generated in<br />

<strong>2021</strong><br />

EUR<br />

Generated in<br />

2020<br />

Excess of revenues over expenses 33,694 125,075<br />

Other comprehensive income<br />

Actuarial gains (losses) 41,842 -15,920<br />

Other comprehensive income for the period -41,842 -15,920<br />

Total comprehensive income (loss) for the period -8,147 -109,155<br />

Accounting policies and notes are an integral part of these financial statements<br />

and should be read in conjunction with them.

64 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />




EUR<br />

Items <strong>2021</strong> 2020<br />

Cash flows from operating activities<br />

<strong>Annual</strong> result 2,488,753 2,338,795<br />

Total expenses -2,453,701 -2,216,275<br />

Adjustments for<br />

Amortization and depreciation 78,664 69,846<br />

Actuarial gains (losses) -41,842 -15,920<br />

Write-downs of property, plant and equipment 2,524 0<br />

Financial income 0 2,560<br />

Financial costs -1,501 -2,924<br />

Operating profit before changes in net current assets and taxes 72,898 176,082<br />

YEAR <strong>2021</strong><br />

Items<br />

Share capital<br />

(Founder's<br />

funds)<br />

Capital<br />

surplus<br />

Fair Value<br />

reserves<br />

General<br />

reserves<br />

EUR<br />

Total<br />

Equity<br />

Opening balance as of January 1, <strong>2021</strong> 4,173 225 -38,491 1,444,042 1,409,949<br />

Entry of additional capital payments 0 0 0 0 0<br />

Total comprehensive income (loss) for the<br />

period<br />

Other components of the comprehensive<br />

income for the <strong>report</strong>ing period<br />

0 0 -41,842 33,694 -8,147<br />

0 0 -41,842 0 -41,842<br />

<strong>Annual</strong> result 0 0 0 33,694 33,694<br />

Closing balance as of December 31, <strong>2021</strong> 4,173 225 -80,332 1,477,736 1,401,802<br />

Changes in net current assets and provisions<br />

Change in receivables 9,764 17,513<br />

Change in prepayments and other assets -607,893 71,570<br />

Change in operating liabilities 158,628 -66,306<br />

Change in provisions 26,504 140,940<br />

Change in advances payable and other current liabilities 343,907 265,321<br />

Net cash flow from operating activities 3,809 605,120<br />

Cash flow from investing activities<br />

Interest received 143 2,919<br />

Acquisitions of property plant and equipment -43,395 -175,695<br />

Net cash flow from investing activities -43,252 -172,776<br />

Cash flow from financing activities<br />

Interest paid 0 0<br />

Net cash flow from financing activities 0 0<br />

Cash and cash equivalents at the beginning of period 2,282,149 1,849,806<br />

YEAR 2020<br />

Items<br />

Share capital<br />

(Founder’s<br />

funds)<br />

Capital<br />

surplus<br />

Fair<br />

value<br />

reserves<br />

General<br />

reserves<br />

EUR<br />

Total<br />

Equity<br />

Opening balance as of January 1, 2020 4,173 225 -22,570 1,318,967 1,300,795<br />

Entry of additional capital payments 0 0 0 0 0<br />

Total comprehensive income (loss) for the<br />

period 0 0 -15,920 125,075 109,155<br />

Other components of the comprehensive<br />

income for the <strong>report</strong>ing period 0 0 -15,920 0 -15,920<br />

<strong>Annual</strong> result 0 0 0 125,075 125,075<br />

Closing balance as of December 31, 2020 4,173 225 -38,491 1,444,042 1,409,949<br />

Accounting policies and notes are an integral part of these financial statements<br />

and should be read in conjunction with them.<br />

Net increase in cash and cash equivalents -39,444 432,343<br />

Cash and cash equivalents at the end of period 2,242,706 2,282,149<br />

Accounting policies and notes are an integral part of these financial statements<br />

and should be read in conjunction with them.

66 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />


2. Introductory notes and accounting<br />

policies<br />


The <strong>report</strong>ing organization Center of Excellence in Finance (<strong>CEF</strong>) is based in Slovenia. Its registered<br />

office is at Cankarjeva 18, SI-1000 Ljubljana, Slovenia.<br />

The <strong>CEF</strong> supports capacity development for finance officials in South East Europe through learning<br />

and knowledge sharing. Its core activities include developing, designing and implementing learning<br />

events and knowledge products in the areas of public financial management, tax policy and administration,<br />

central banking, data analysis for designing policies and leadership for managing reforms.<br />

The financial statements of the <strong>CEF</strong> were prepared for the business year that ended on December<br />

31, <strong>2021</strong>.<br />


(A) STATEMENT OF COMPLIANCE. The financial statements were prepared in accordance with<br />

the International Financial Reporting Standards (IFRS) as adopted by the EU and the provisions<br />

of the <strong>CEF</strong> Internal Rules.<br />

The financial statements were approved by the <strong>CEF</strong> Director on May 6, 2022.<br />

The financial statements were compiled in accordance with the assumption of ongoing concern.<br />

The <strong>CEF</strong>’s work is not influenced by seasons; however, the financial result depends on the number<br />

and duration of approved projects. Covid-19 did not affect implementation of the program in<br />

quantity. Program that was planned to be delivered in classrooms was and is delivered online.<br />

(B) MEASUREMENT BASIS. The financial statements were compiled on a historical cost basis.<br />

(C) FUNCTIONAL AND PRESENTATION CURRENCY. The financial statements are expressed in<br />

euros, the <strong>CEF</strong>’s functional currency. All accounting data presented in euros are rounded to the<br />

nearest integer.<br />

(D) REPORTING PERIOD. The <strong>CEF</strong>’s financial year equals the calendar year.<br />

(E) USE OF ESTIMATES AND JUDGMENTS. When preparing the financial statements, the <strong>CEF</strong>’s<br />

management is required to make judgments, estimates and assumptions that affect the application<br />

of accounting policies and the <strong>report</strong>ed values of assets, liabilities, revenues and expenses<br />

in accordance with the IFRS. Actual results may vary from these estimates.<br />

The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting<br />

estimates are recognized in the period in which the estimate is revised and in any future periods<br />

affected. Estimates and assumptions are mainly associated with: estimated useful lives of<br />

amortizable assets, asset impairment, employee earnings, provisions, and contingent liabilities.<br />


The <strong>CEF</strong> has consistently applied the accounting policies to all periods presented in its financial<br />

statements.<br />


Foreign currency transactions<br />

Foreign currency transactions are converted into the functional currency of the <strong>CEF</strong> using the<br />

exchange rate applied on the day they arise. Cash, cash equivalents and liabilities denominated<br />

in foreign currencies are converted into the functional currency using the exchange rate applicable<br />

at the end of the <strong>report</strong>ing period. Positive or negative exchange differences are differences<br />

between the amortized cost in the functional currency at the beginning of the period, increased<br />

or decreased by the amount of applicable interest and payments in the period, and the amortized<br />

cost expressed in foreign currency, converted using the exchange rate at the end of the period.<br />

Exchange rate differences are recognized in the income statement.<br />

The ECB’s reference exchange rates and the Bank of Slovenia’s monthly exchange rates for currencies<br />

for which the ECB does not publish reference exchange rates are used to convert receivables<br />

denominated in foreign currencies<br />


Non-derivative financial assets<br />

Receivables and deposits are initially recognized on the day they arise. Financial assets are<br />

derecognized when the contractual rights to cash flows from these assets expire, or when the<br />

<strong>CEF</strong> transfers the rights to cash flows from financial assets based on a transaction that involves<br />

the transfer of all risks and benefits associated with the ownership of the financial asset.<br />

Depending on their maturity, they are classified as current financial assets (maturity of up to 12<br />

months from the date of the statement of financial position) or non-current financial assets (maturity<br />

of more than 12 months from the date of the statement of financial position). Deposits and<br />

receivables are recognized initially at fair value plus any directly attributable transaction costs.<br />

Subsequent to initial recognition, they are measured at amortized cost using the effective interest<br />

method, less any impairment losses.<br />

Receivables<br />

Loans and receivables are non-derivative financial assets with fixed or determinable payments<br />

not quoted on an active market. They are initially recognized at fair value and increased by any direct<br />

transaction costs. After initial recognition, loans and receivables are measured at amortized<br />

cost using the effective interest rate method, less any impairment losses. Loans and receivables<br />

include operating and other receivables.<br />

The <strong>CEF</strong> does not invest in non-derivative financial assets with fixed or determinable payments.<br />

The <strong>CEF</strong> checks the materiality of disclosed receivables at least once a year. Receivables, for<br />

which there exists the possibility that they will not be settled in part (or not at all) within 180 days<br />

of maturity, are generally deemed as doubtful. The <strong>CEF</strong> creates an allowance for doubtful and<br />

disputed receivables in an amount equal to 100%, which is charged to revaluation expenses. <strong>CEF</strong><br />

did not make material changes to impairment policy for undue receivables as IFRS 9 requires, as<br />

the effects are immaterial.

68 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />


Cash and cash equivalents<br />

Cash and cash equivalents include cash in hand and sight deposits.<br />

Financial and operating liabilities<br />

Other financial and operating liabilities are initially recognized at fair value on the day they arise,<br />

and afterwards at amortized cost, using the effective interest rate method.<br />

Liabilities are only derecognized if they have been extinguished, meaning that they have been<br />

fulfilled. The difference between the carrying amount of liabilities that have been extinguished<br />

and the consideration paid (including non-monetary assets or assumed liabilities) is recognized<br />

immediately in the profit or loss account.<br />

Share capital<br />

Share capital is the capital contributed by the founder. The <strong>CEF</strong>’s total equity comprises capital<br />

and capital surplus.<br />

General reserves<br />

As envisaged in Article 17 of the <strong>CEF</strong> Financial Rules and Regulations, general reserves are created<br />

to cover the annual running costs of the <strong>CEF</strong> and its core program and shall amount at least<br />

to the total sum of one million euro. Financial result of the year shall be transferred to the general<br />

reserves, unless otherwise decided by the Governing Board.<br />


Recognition and measurement<br />

Items of property, plant and equipment are disclosed at historical cost, less depreciation costs<br />

and impairment losses.<br />

Costs of assets produced comprise the costs of materials, direct costs of labor, other costs that<br />

can be directly attributed to enabling the use of assets for their intended purpose, costs of disposal<br />

and removal, costs of restoring the location of the asset to its original state, and capitalized<br />

borrowing costs.<br />

Any computer software that contributes significantly to the assets’ functionality should be capitalized<br />

as part of these assets.<br />

Components of items of property, plant and equipment that have different useful lives are accounted<br />

for as separate items.<br />

Subsequent costs<br />

Costs arising from the replacement of parts of fixed assets are recognized at carrying value if<br />

future economic benefits associated with a part are likely to increase and if its historical cost can<br />

be measured reliably. All other costs (such as daily maintenance) are recognized as expenses in<br />

the income statement in the period they arise.<br />

Spare parts<br />

Spare parts and maintenance equipment of lower value with useful lives of up to one year are<br />

treated as inventory and recognized as costs in the income statement. Spare parts and equipment<br />

of significant value with estimated useful lives exceeding one year are recognized as items<br />

of property, plant and equipment.<br />

Depreciation<br />

Depreciation is calculated using the straight-line method based on the useful life of each component<br />

of an item of property, plant and equipment. This is the most accurate method for predicting<br />

asset usage patterns.<br />

Estimated useful lives for the current and comparative period are as follows:<br />

Depreciation rates <strong>2021</strong> 2020<br />

Computer equipment, mobile phone, copy machine 2–3 years 2–3 years<br />

Investment in premises 33 years 33 years<br />

Other equipment 3–5 years 3–5 years<br />

Depreciation methods, useful lives and residual values are reviewed at the end of the <strong>report</strong>ing<br />

period and adjusted if necessary. No changes in recording depreciation were applied in <strong>2021</strong>.<br />


Other intangible assets<br />

Other intangible assets with limited useful lives are disclosed at historical cost, less amortization<br />

costs and accumulated impairment losses.<br />

Subsequent costs<br />

Subsequent costs associated with intangible assets are only capitalized if they increase future<br />

economic benefits arising from the asset to which the cost is related. All other costs are recognized<br />

as expenses in the income statement when they arise.<br />

Amortization<br />

Amortization is calculated based on an asset’s purchase value or another value that is used<br />

instead. Amortization is recognized in the income statement using the straight-line method and<br />

is based on the useful life of intangible assets, starting from the date the asset is available for<br />

use. This is the most accurate method for predicting the patterns of future economic benefits<br />

associated with the asset.<br />

Estimated useful lives for the current and comparative year are as follows:<br />

Amortization rates <strong>2021</strong> 2020<br />

Software 2–3 years 2–3 years<br />

Other intangible assets 2–3 years 2–3 years<br />

Amortization methods, useful lives and other values are reviewed at the end of each business<br />

year and adjusted if necessary. No changes in recording amortization were applied in <strong>2021</strong>.

70 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />



Costs that will occur in the next financial year, but were already paid in the financial year, are<br />

recorded as short-term deferred costs.<br />

Short-term accrued revenues are revenues where costs occurred in the financial period but the<br />

formal <strong>report</strong> and reimbursement request will be submitted to the donor in the next financial year.<br />


Liabilities from short-term employee earnings are measured on an undiscounted basis and are<br />

recognized as expenses as soon as the work is performed by an employee and comprise basic<br />

gross salary, allowances, and benefits.<br />


The <strong>CEF</strong> records short-term deferred revenues for revenues from projects that were received in<br />

the financial year (as advance payments) for deliverables due in the next financial year.<br />

The <strong>CEF</strong> <strong>report</strong>s short-term accrued costs for materials and services that were delivered in the<br />

financial year, but for which invoices will be received in the next financial year.<br />

(I) REVENUE<br />

Revenue is recognized as follows:<br />

For long-term projects, the revenue from services rendered is recognized based on the stage of<br />

completion as at the balance sheet date. Under this method, the revenue is recognized in the<br />

accounting period in which the services are rendered.<br />

Grants<br />

All types of grants are recognized in the financial statements when the <strong>CEF</strong> submits a <strong>report</strong><br />

and/or issues a reimbursement request or a payment request. In addition, they are recognized in<br />

deferred revenues when the work was done but the <strong>report</strong> was not submitted by the end of the<br />

financial year.<br />

Deferred/accrued revenues and expenses<br />

The <strong>CEF</strong> records in short-term deferred revenues advance payments received for projects with<br />

expected deliverables in the next financial year. Short-term accrued revenues comprise revenues<br />

generated from activities delivered in the financial year that will be <strong>report</strong>ed and paid for in the<br />

next financial year.<br />

The <strong>CEF</strong> records in short-term deferred costs expenses that were paid in the financial year (such<br />

as advance payments) that will occur in the next financial year, and in short-term accrued costs<br />

expenses in the financial year for which invoices have not yet arrived.<br />


Provisions are recognized for legal or constructive obligation as a result of a past event that can<br />

be measured reliably, and it is probable that an outflow of economic benefits will be required to<br />

settle the obligation. Provisions are determined by discounting expected future cash flows at a<br />

pre-tax rate that reflects current market assessments of the time value of money, and—where<br />

appropriate—the risks specific to the liability.<br />

Provisions for severance payments and long-service bonuses<br />

Pursuant to the internal rules, the <strong>CEF</strong> is obliged to pay long-service bonuses and severance<br />

payments to employees and has created long-term provisions for this purpose. There are no other<br />

obligations relating to pensions. Provisions are created in the amount of estimated future severance<br />

payments and long-service bonuses, discounted at the end of the <strong>report</strong>ing period.<br />

The <strong>CEF</strong> created non-current provisions in 2018 for long-service bonuses and severance payments<br />

at retirement as the present value of future payments required to settle liabilities arising<br />

from employees’ service in the current and future periods, taking into account the costs of severance<br />

payments at retirement and the costs of all expected long-service bonuses until retirement.<br />

A discount rate of 1.169% was set for the calculation on December 31, <strong>2021</strong> based on the yields<br />

on 15-year corporate bonds with high credit rating in the euro area. The calculation was prepared<br />

by an outsourced actuary.<br />

Labor costs and interest expenses are recognized in the income statement, while recalculated<br />

post-employment benefits and unrealized actuarial gains or losses from severance pay are recognized<br />

as an equity item in other comprehensive income.<br />


Financial income includes interest from deposits and positive exchange rate differences.<br />

Financial expenses include negative exchange rate differences.<br />



The following new standards, amendments to the existing standards and interpretation issued by<br />

the International Accounting Standards Board (IASB) are effective for the current <strong>report</strong>ing period:<br />

• Amendments to IFRS 9 “Financial Instruments”, IAS 39 “Financial Instruments: Recognition<br />

and Measurement”, IFRS 7 “Financial Instruments: Disclosures”, IFRS 4 “Insurance Contracts”<br />

and IFRS 16 “Leases” – Interest Rate Benchmark Reform – Phase 2 (effective for<br />

annual periods beginning on or after 1 January <strong>2021</strong>),<br />

• Amendments to IFRS 16 “Leases” – Covid-19-Related Rent Concessions (effective for annual<br />

periods beginning on or after 1 June 2020. Earlier application is permitted),*<br />

• Amendments to IFRS 4 “Insurance Contracts” – Extension of the Temporary Exemption from<br />

Applying IFRS 9 (the expiry date for the temporary exemption from IFRS 9 was extended to<br />

annual periods beginning on or after 1 January 2023).<br />

The adoption of these new standards, amendments to the existing standards and interpretation<br />

has not led to any material changes in the <strong>CEF</strong>s financial statements.

72 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />



At the date of authorisation of these financial statements, the following new standards, amendments<br />

to existing standards and new interpretation were in issue, but not yet effective:<br />

• IFRS 17 “Insurance Contracts” including amendments to IFRS 17 (effective for annual periods<br />

beginning on or after 1 January 2023),<br />

• Amendments to IFRS 3 “Business Combinations” - Reference to the Conceptual Framework with<br />

amendments to IFRS 3 (effective for annual periods beginning on or after 1 January 2022),<br />

• Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in<br />

Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its<br />

Associate or Joint Venture and further amendments (effective date deferred indefinitely until<br />

the research project on the equity method has been concluded),<br />

• Amendments to IFRS 16 “Leases” - Covid-19-Related Rent Concessions beyond 30 June <strong>2021</strong><br />

(effective for annual <strong>report</strong>ing periods beginning on or after 1 April <strong>2021</strong>. Earlier application<br />

permitted, including in financial statements not yet authorised for issue at the date the amendment<br />

is issued.)*<br />

• Amendments to IFRS 17 “Insurance contracts” - Initial Application of IFRS 17 and IFRS 9 –<br />

Comparative Information (effective for annual periods beginning on or after 1 January 2023).<br />

• Amendments to IAS 1 “Presentation of Financial Statements” - Classification of Liabilities as<br />

Current or Non-Current (effective for annual periods beginning on or after 1 January 2023),<br />

• Amendments to IAS 1 “Presentation of Financial Statements” - Disclosure of Accounting Policies<br />

(effective for annual periods beginning on or after 1 January 2023),<br />

• Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” -<br />

Definition of Accounting Estimates (effective for annual periods beginning on or after 1 January<br />

2023),<br />

• Amendments to IAS 12 “Income Taxes” - Deferred Tax related to Assets and Liabilities arising<br />

from a Single Transaction (effective for annual periods beginning on or after 1 January 2023),<br />

• Amendments to IAS 16 “Property, Plant and Equipment” - Proceeds before Intended Use (effective<br />

for annual periods beginning on or after 1 January 2022),<br />

• Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” - Onerous<br />

Contracts - Cost of Fulfilling a Contract (effective for annual periods beginning on or after 1<br />

January 2022),<br />

• Amendments to various standards due to “Improvements to IFRSs (cycle 2018 -2020)” resulting<br />

from the annual improvement project of IFRS (IFRS 1, IFRS 9, IFRS 16 and IAS 41) primarily<br />

with a view to removing inconsistencies and clarifying wording (The amendments to IFRS<br />

1, IFRS 9 and IAS 41 are effective for annual periods beginning on or after 1 January 2022. The<br />

amendment to IFRS 16 only regards an illustrative example, so no effective date is stated.).<br />

The <strong>CEF</strong> has elected not to adopt these new standards, amendments to existing standards and<br />

new interpretation in advance of their effective dates. The <strong>CEF</strong> anticipates that the adoption of<br />

these standards, amendments to existing standards and new interpretations will have no material<br />

impact on the financial statements of the <strong>CEF</strong> in the period of initial application.<br />

3. Notes to the financial statements<br />


Intangible assets<br />

January 1,<br />

<strong>2021</strong><br />

New<br />

investments Write-offs Amortization<br />

EUR<br />

December 31,<br />

<strong>2021</strong><br />

Purchase value 57,816 0 -1,558 0 56,258<br />

Accumulated amortization -23,662 0 1,558 -9,315 -31,418<br />

Carrying value 34,154 0 0 -9,315 24,839<br />

Intangible assets<br />

January 1,<br />

2020<br />

New<br />

investments Write-offs Amortization<br />

December 31,<br />

2020<br />

Purchase value 57,816 0 0 0 57,816<br />

Accumulated amortization -14,347 0 0 -9,315 -23,662<br />

Carrying value 43,469 0 0 -9,315 34,154<br />

Intangible assets comprise computer software and textbooks for TIAPS program and are recorded at purchase value. A<br />

change in position results from investment and amortization. In <strong>2021</strong> <strong>CEF</strong> didn’t have investments in intangible assets.<br />


Equipment<br />

January 1,<br />

<strong>2021</strong><br />

New<br />

investments Write-offs Depreciation<br />

EUR<br />

December 31,<br />

<strong>2021</strong><br />

Purchase value 1,312,627 43,395 -24,484 0 1,331,538<br />

Accumulated depreciation -649,977 0 21,960 -69,350 -697.367<br />

Carrying value 662,649 43,395 -2,524 -69,350 634,171<br />

Equipment<br />

January 1,<br />

2020<br />

New<br />

investments Write-offs Depreciation<br />

December 31,<br />

2020<br />

Purchase value 1,136,931 175,695 0 0 1,312,627<br />

Accumulated depreciation -589,446 0 0 -60,532 -649,977<br />

Carrying value 547,486 175,695 0 -60,532 662,649<br />

Equipment owned by the <strong>CEF</strong> is used to carry out the <strong>CEF</strong>’s activities and comprises office, computer and other<br />

equipment, as well as investments and improvements in the business premises. A change in the position results<br />

from purchases, write-offs and accumulated depreciation. Write-offs relate to the equipment that is no longer in use.

74 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />


New investments in <strong>2021</strong> comprise electronic equipment (computers, printers, projectors). The <strong>CEF</strong>’s equipment is<br />

not pledged. Liabilities for purchase of equipment as of December 31, <strong>2021</strong> amount to EUR 19,383 and in amount<br />

to EUR 6,405 as of December 31, 2020.<br />


EUR<br />

Cash and cash equivalents December 31, <strong>2021</strong> December 31, 2020<br />


Trade receivables December 31, <strong>2021</strong> December 31, 2020<br />

Banka Slovenije 1,517 0<br />

IMF 0 38,766<br />

Other receivables 64,227 36,742<br />

Total 65,744 75,508<br />

Trade receivables comprise claims from projects and other receivables from original documents and without any<br />

valuation adjustment.<br />

Trade receivables are non-interest bearing. The method of impairment did not change in <strong>2021</strong>.<br />

Trade receivables change from year to year depending on the life cycle of a project run by the <strong>CEF</strong>.<br />

Other receivables comprise VAT refunds and social security refunds.<br />

EUR<br />

Cash and deposits in EUR 2,241.256 2,279,963<br />

Cash and deposits in USD 1,135 1,862<br />

Cash in hand 315 324<br />

Total 2,242,706 2,282,149<br />

Cash and cash equivalents comprise short-term deposits in EUR and USD with UniCredit Bank, Ljubljana.<br />


EUR<br />

Prepayments and other assets January 1, <strong>2021</strong> Disbursement Increases December 31, <strong>2021</strong><br />

Accrued revenue (not yet invoiced) 0 0 627,127 627,127<br />

Advance payments 23,124 -23,124 719 719<br />

Deferred costs 24,419 -24,419 27,590 27,590<br />

Total 47,543 -47,543 655,436 655,436<br />

Age structure and changes in impairments of receivables<br />

EUR<br />

December 31, <strong>2021</strong> December 31, 2020<br />

Aging of receivables Gross amount Impairments Gross amount Impairments<br />

Not past due 65,744 0 75,508 0<br />

Past due up to 90 days 0 0 0 0<br />

Past due from 91 to 180 days 0 0 0 0<br />

Past due from 181 to 365 days 0 0 0 0<br />

Prepayments and other assets January 1, 2020 Disbursement Increases December 31, 2020<br />

Accrued revenue (not yet invoiced) 93,078 -93,078 0 0<br />

Advance payments 4,339 -4,339 23,124 23,124<br />

Deferred costs 21,696 -1,356 4,079 24,419<br />

Total 119,113 -98,773 27,203 47,543<br />

Short-term deferred costs and accrued revenue comprise accrued income and costs that were paid in <strong>2021</strong> and will<br />

occur in 2022, such as insurance premiums.<br />

More than one year 0 0 0 0<br />

Total 65,744 0 75,508 0

76 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />


NOTE 6: EQUITY<br />

Equity (Founder’s funds) December 31, <strong>2021</strong> December 31, 2020<br />

Share capital (Founder's funds) 4,173 4,173<br />

Capital surplus 225 225<br />

Fair value reserves -80,332 -38,491<br />

General reserves 1,477,736 1,444,042<br />

Total 1,401,802 1.409.949<br />

Share capital represents start-up contribution in the amount of EUR 4,173 and capital surplus.<br />

The surplus generated in <strong>2021</strong> was allocated to the general reserve fund (as envisaged in the internal rules of the<br />

<strong>CEF</strong>).<br />

Fair value reserves from actuarial calculations of severance pay were negative in the amount of EUR 80,332 at the<br />

end of <strong>2021</strong>.<br />


Provisions January 1, <strong>2021</strong> Disbursement Increases December 31, <strong>2021</strong><br />

Reserves for severance pay 192,900 -14,853 79,150 257,197<br />

Other provisions 36,377 0 0 36,377<br />

Total 229,277 -14,853 79,150 293,574<br />

Provisions January 1, 2020 Disbursement Increases December 31, 2020<br />

Reserves for severance pay 157,808 0 35,092 192,900<br />

Other provisions 36,377 0 0 36,377<br />

Total 194,185 0 35,092 229,277<br />

The <strong>CEF</strong> created provisions for severance payments and long-service bonuses based on the current value of its liabilities<br />

to employees (see also Note 15).<br />

The reserves for textbooks were created as <strong>CEF</strong> received some funds that were specifically dedicated to prepare textbooks<br />

for TIAPS program. Textbooks for Level 1 have been finalized in 2019 (see also Note 1). Textbooks for Level 2<br />

are being prepared to be put in use in the future. The <strong>CEF</strong> will need to keep these textbooks updated, so funds will be<br />

reserved for this also in the future.<br />

EUR<br />

EUR<br />

EUR<br />


Long-term accrued costs<br />

and deferred revenue<br />

January<br />

1, <strong>2021</strong><br />

New<br />

investments<br />

Write<br />

offs<br />

Amortization<br />

and<br />

depreciation<br />

EUR<br />

December<br />

31, <strong>2021</strong><br />

Fund to finance amortization and depreciation 696,895 43,395 -2,524 -78,664 659,102<br />

Carrying value 659,102<br />

Long-term accrued costs<br />

and deferred revenue<br />

January<br />

1, 2020<br />

New<br />

investments<br />

Write<br />

offs<br />

Amortization<br />

and<br />

Depreciation<br />

EUR<br />

December<br />

31, 2020<br />

Fund to finance amortization and depreciation 591,046 175,695 0 -69,846 696,895<br />

Carrying value 696,895<br />

Government grants are covering the depreciation and amortization of long-term assets.<br />


Operating liabilities December 31, <strong>2021</strong> December 31, 2020<br />

Trade payables to suppliers in Slovenia 125,801 15,435<br />

Trade payables to suppliers outside Slovenia 19,602 1,412<br />

Liabilities to employees 138,673 125,661<br />

Other short-term liabilities 21,284 4,223<br />

Total 305,359 146,732<br />

Operating liabilities comprise accounts payable (short-term trade payables to suppliers of goods and services, including<br />

maintenance services), liabilities to employees (December salary), and other short-term liabilities (other taxes and<br />

lecturers’ fees).<br />


Advances payable and<br />

other current liabilities January 1, <strong>2021</strong> Disbursements Increases December 31, <strong>2021</strong><br />

Deferred revenues for projects 385,241 -385,241 906,611 906,611<br />

Other accrued costs 233,909 -233,909 56,446 56,446<br />

Total 619,151 -619,150 963,057 963,058<br />

EUR<br />


78 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />


Advances payable and<br />

other current liabilities January 1, 2020 Disbursements Increases December 31, 2020<br />

Deferred revenues for projects 302,731 -302,731 385,241 385,241<br />

Other accrued costs 51,098 -51,098 233,910 233,910<br />

Total 353,829 -353,829 619,151 619,151<br />

Contract liabilities represent revenues received in <strong>2021</strong> for costs that will occur in 2022; EUR 806,611 for the FISR<br />

project, financed by European Union and EUR 100,000 for PACT L2 North Macedonia co-financed by Ministry of Finance<br />

Slovakia.<br />

Other accrued costs relate to costs that occurred in <strong>2021</strong> and invoices we not received yet, auditing services and<br />

costs of unused annual leave days that were allocated to the staff for the year <strong>2021</strong> and are to be used by August<br />

31, 2022.<br />


Revenue from program in <strong>2021</strong> Project Invoiced From/To<br />

From/To<br />

deferred<br />

revenue<br />

EUR<br />

Net<br />

amount<br />

Ministry of Finance, Slovenia Program <strong>2021</strong> 1,000,000 0 0 1,000,000<br />

Ministry of Foreign Affairs, Slovenia PACT N. Macedonia 199,952 0 0 199,952<br />

Ministry of Finance, the Netherlands<br />

Tax Administration,<br />

PIFC<br />

229,001 0 0 229,001<br />

Ministry of Finance, Slovakia FISR Moldova 61,094 0 0 61,094<br />

Banka Slovenije CB workshops (MFE)* 202,097 0 0 202,097<br />

EU FISR 627,126 0 0 627,126<br />

CIPFA Conference 15,066 0 0 15,066<br />

IMF Workshops 74,580 0 0 74,580<br />

Total 2,408,916 0 0 2,408,916<br />

To provisions to finance<br />

amortization and depreciation<br />

From provisions to finance<br />

amortization and depreciation<br />

0 0 -40,872 -40,872<br />

0 78,664 0 78,664<br />

Total 2,408,916 78,664 -40,872 2,446,709<br />

Transfer to reserves 0 0 0 -33,694<br />

*Macroeconomic and Financial Environment<br />

Revenue from program in 2020 Project Invoiced<br />

From/To<br />

accrued<br />

revenue<br />

From/To<br />

deferred<br />

revenue<br />

EUR<br />

Net<br />

amount<br />

Ministry of Finance, Slovenia Program 2020 1,000,000 0 0 1,000,000<br />

Ministry of Foreign Affairs, Slovenia PACT N. Macedonia 199,910 0 0 199,910<br />

Ministry of Foreign Affairs, Slovenia TIAPS Montenegro 48,277 0 0 48,277<br />

Ministry of Foreign Affairs, Slovenia PACT Montenegro 34,744 0 0 34,744<br />

Ministry of Finance, the Netherlands Tax Administration, PIFC 103,182 0 0 103,182<br />

Ministry of Finance, Slovakia<br />

PACT Montenegro, FISR<br />

Moldova<br />

130,110 0 0 130,110<br />

Banka Slovenije CB workshops (MFE)* 213,450 0 0 213,450<br />

EU FISR 566,811 0 0 566,811<br />

GIZ TIAPS Georgia 72,293 0 0 72,293<br />

IMF Workshops 42,464 0 0 42,464<br />

World Bank Workshops 32,724 0 0 32,724<br />

Total 2,443,965 0 0 2,443,965<br />

To provisions to finance<br />

amortization and depreciation<br />

From provisions to finance<br />

amortization and depreciation<br />

0 0 -175,695 -175,695<br />

0 69,846 0 69,846<br />

Total 2,443,965 69,846 -175,695 2,338,116<br />

Transfer to reserves 0 0 0 -125,075<br />

*Macroeconomic and Financial Environment<br />

In addition, the Government of Slovenia contributed to the <strong>CEF</strong> by granting free of charge premises. This is an in-kind<br />

contribution that was not recorded in the <strong>CEF</strong> books estimated at EUR 12 per square meter (in total EUR 182,184 +<br />

VAT (EUR 40,081) = EUR 222,265.<br />

NOTE 12: Financial income represents interest on deposits and exchange rate changes.<br />


Costs of materials <strong>2021</strong> 2020<br />

Costs of energy 33,359 33,765<br />

Materials and spare parts 11,840 15,909<br />

Office supplies 25,813 2,359<br />

Other costs of materials 6,461 5,924<br />

Total 77,473 57,957<br />

EUR<br />

Costs of materials and spare parts comprise spare parts for equipment and materials for renovating and maintaining<br />

the <strong>CEF</strong> premises.

80 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />



Costs of services <strong>2021</strong> 2020<br />

Production services costs 146,751 139,049<br />

Transport services costs for events 40,255 39,029<br />

Rents 30,636 26,531<br />

Costs of employees’ business travels 7,904 5,744<br />

Payments, bank services, insurance costs 14,852 10,467<br />

Intellectual services costs for events 212,873 188,033<br />

Intellectual services costs 19,203 20,668<br />

Costs of exhibition, advertising 3,491 2,918<br />

Personal services costs for events (authors, translators, mentors) 152,817 117,814<br />

Costs of other services for events 75,561 86,501<br />

Total 704,344 636,754<br />

Intellectual services for events records fees for experts, authors, translators and mentors who work from their companies<br />

and issue invoices to the <strong>CEF</strong>; and personal services for events records fees for experts, authors, translators<br />

and mentors who are paid by contract. The <strong>CEF</strong> records transport services for events (e.g. travel for participants) only<br />

when sponsored by a donor. Other services for events comprise copying materials, rent of interpretation equipment<br />

and classrooms when workshops are organized outside the <strong>CEF</strong>, as well as refreshments and lunches for participants.<br />

Intellectual services are costs of experts that support the <strong>CEF</strong> with services, such as communication, legal advice<br />

and training.<br />


Labor costs <strong>2021</strong> 2020<br />

Employee salaries 1,183,725 1,090,379<br />

Employee salaries compensation 16,978 10,374<br />

Reimbursement and other employee benefits 170,127 159,037<br />

Employer's salaries contributions, taxes 173,667 161,774<br />

Other labor costs 35,887 16,936<br />

Total 1,580,384 1,438,499<br />

EUR<br />

EUR<br />

In <strong>2021</strong>, the <strong>CEF</strong> calculated costs of annual leave days that were unused in <strong>2021</strong> and are to be used by the end of<br />

August, 2022.<br />

Other labor costs comprise provisions for severance payments and long-service bonuses.<br />

The earnings of members of the Executive Management and Governing Board<br />

Data regarding groups of persons<br />

EUR<br />

Employees under individual employment contract<br />

December 31, <strong>2021</strong> December 31, 2020<br />

Salaries 78,214 68,442<br />

Reimbursements and other employee benefits 7,300 2,127<br />

Total 85,513 70,569<br />

Members of the Governing Board are not compensated.<br />

The director received anniversary award for 30 years of service as per Annex I to the Rules of Employment, Article 15.<br />

Number of employees by formal education level<br />

Number of employees by formal education level (EQF) December 31, <strong>2021</strong> December 31, 2020<br />

Level 4 2 2<br />

Level 5 3 3<br />

Level 6 6 6<br />

Level 7 18 18<br />

Level 8 4 4<br />

Total 33 33<br />


Amortization and depreciation <strong>2021</strong> 2020<br />

Amortization of intangible assets 9,315 9,315<br />

Depreciation of equipment 50,844 42,043<br />

Depreciation of other fixed assets 18,506 18,489<br />

Total 78,664 69,846<br />

EUR<br />

The <strong>CEF</strong> calculates salaries and other labor-related costs (meal and travel allowance, supplement health and pension<br />

insurance, travel insurance) according to the <strong>CEF</strong> Rules of Employment, Annex I. On December 31, <strong>2021</strong>, the <strong>CEF</strong> had<br />

33 employees, same as on December 31, 2020. In <strong>2021</strong>, there were four international employees, who do not pay<br />

social security and personal income taxes.

82 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />



EUR<br />

Other operating expenses <strong>2021</strong> 2020<br />

Contributions not related to labor costs 377 1,510<br />

Students’ work 9,239 9,343<br />

Other costs 526 2,366<br />

Total 10,142 13,219<br />

NOTE 18: Financial expenses record negative exchange rate changes.<br />

NOTE 19: Other expenses represent differences from rounded amounts paid in cash.<br />

4. Determination of fair value<br />

and risk management<br />

The <strong>CEF</strong> is exposed to the following risks: strategic, reputational, operational and financial.<br />

The <strong>CEF</strong>’s prudent approach to risk management helps the <strong>CEF</strong> maintain its high level of operational<br />

quality and is crucial for achieving its business goals. The use of standard methodologies<br />

and risk management procedures enables quality risk assessment, timely responses, and minimum<br />

exposure of the <strong>CEF</strong> to major risks, being strategic, reputational, operational and financial.<br />

Strategic risks may arise from the pursuit of an unsuccessful business plan, poor business decisions,<br />

substandard execution of decisions, inadequate resource allocation, and/or from a failure<br />

to respond well to changes in the business environment. The <strong>CEF</strong> manages these risks by close<br />

cooperation and under supervision by the Governing Board and other stakeholders.<br />

Reputational risks may result in damages to the <strong>CEF</strong>’s reputation, which may manifest either in<br />

lost revenues or increased costs and in destruction of stakeholders’ value and trust. To minimize<br />

these risks, the <strong>CEF</strong> invests in building its ethics, security, sustainability, quality and innovation to<br />

remain capable of answering to stakeholders’ needs.<br />

Operational risks are imputed in <strong>CEF</strong> business activities through inadequate or failed internal<br />

processes, people and systems, as well as from some external events. The <strong>CEF</strong> manages these<br />

risks by strict implementation of internal procedures that include, but are not limited to, strict implementation<br />

of the principle of four eyes, introduction of the internal audit function, and training<br />

managers to improve their control functions.<br />

Financial risks are associated with financing, including budgeting, managing expenses within<br />

budgets, and overspending in case a project cannot be successfully completed without additional<br />

expenses. The <strong>CEF</strong> manages these risks by budgeting for all expenses that might occur within the<br />

project, and building sufficient reserves to cover potential loss from the project.<br />


EUR<br />

Credit risk Note December 31, <strong>2021</strong> December 31, 2020<br />

Cash and cash equivalents 4 2,242,706 2,282,149<br />

Trade receivables 3 65,744 75,508<br />

Total 2,308,449 2,357,657

84 <strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />



Exposure to changes in exchange rates is presented in the table below.<br />

Currency risk December 31, <strong>2021</strong> EUR USD CHF GBP<br />

Cash and cash equivalents 2,242,706 2,241,571 1,135 0 0<br />

Trade receivables 65,744 65,744 0 0 0<br />

Operating liabilities 305,359 304,876 0 484 0<br />

Total 2,613,809 2,612,190 1,135 484 0<br />

Currency risk December 31, 2020 EUR USD CHF GBP<br />

Cash and cash equivalents 2,282,149 2,280,967 1,182 0 0<br />

Trade receivables 75,508 75,508 0 0 0<br />

Operating liabilities 146,732 145,320 0 1,412 0<br />

Total 2,504,389 2,501,795 1,182 1,412 0<br />

EUR<br />

EUR<br />

Financial liabilities<br />

Fair value is calculated for <strong>report</strong>ing purposes based on the present value of future principal and interest payments,<br />

discounted using a market interest rate at the end of the <strong>report</strong>ing period.<br />

Trade and other receivables<br />

The fair value of operating and other receivables is calculated for <strong>report</strong>ing purposes based on the present value of<br />

future principal and interest, discounted according to a market interest rate at the <strong>report</strong>ing date.<br />

Financial instruments are categorized to three levels with respect to the calculation of their fair value:<br />

Level 1 – assets and liabilities at market price (the use of published prices arising on an active market for the same<br />

assets or liabilities);<br />

Level 2 – assets and liabilities not classified as Level 1 but whose value is determined directly or indirectly on the<br />

basis of market observables;<br />

Level 3 – assets and liabilities whose value cannot be determined on the basis of market observables and thus cannot<br />

be classified to Level 1 or Level 2.<br />

The fair value of current assets and liabilities is equal to their carrying amount.<br />

Change in exchange rate would not have significant effect on the financial statements.<br />


EUR<br />


Exposure to interest-rate risk, i.e. the risk of changes in interest rates on deposits, is low. By planning investment activities,<br />

current operations and deposits, the <strong>CEF</strong>’s cash flows are coordinated and do not require borrowings.<br />

Interest-rate risk December 31, <strong>2021</strong> December 31, 2020<br />

Financial instruments at fixed interest rates<br />

Financial assets (deposits) 2,237,471 2,261,450<br />

Financial liabilities 0 0<br />

Financial instruments at fixed interest rates<br />

Financial assets 0 0<br />

Financial liabilities 0 0<br />

Total 2,237,471 2,261,450<br />

Determination of fair value<br />

Given the <strong>CEF</strong>’s accounting policies and classification approach, the determination of the fair value of both financial<br />

and non-financial assets and liabilities is necessary.<br />

The fair values of individual groups of assets were determined for measurement and/or <strong>report</strong>ing purposes based on<br />

the method described below.<br />

EUR<br />

Fair value<br />

Carrying<br />

amount<br />

<strong>2021</strong><br />

Fair value<br />

Carrying<br />

amount<br />

2020<br />

Fair value<br />

Trade receivables 65,744 65,744 75,508 75,508<br />

Cash and cash equivalents 2,242,706 2,242,706 2,282,149 2,282,149<br />

Prepayments and other assets 655,436 655,436 47,543 47,543<br />

Trade payables 145,403 145,403 16,847 16,847<br />

Other short-term payables 21,284 21,284 4,223 4,223<br />

Advances payable and other current liabilities 963,058 963,058 619,151 619,151<br />

Total 4,093,629 4,093,629 3,045,421 3,045,421<br />


Fair value of assets Level 1 Level 2<br />

<strong>2021</strong><br />

Level 3 Level 1 Level 2<br />

EUR<br />

2020<br />

Level 3<br />

Trade receivables 0 0 65,744 0 0 75,508<br />

Cash and cash equivalents 2,242,706 0 0 2,282,149 0 0<br />

Prepayments and other assets 0 0 655,436 0 0 47,543<br />

Total 2,242,706 0 721,170 2,282,149 0 123,051<br />

Non-current financial assets<br />

The fair value of non-current financial assets is determined on the closing market price as at the <strong>report</strong>ing date.

86<br />

<strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />



1.<br />

Deloitte revizija d.o.o.<br />

Dunajska cesta 165<br />

1000 Ljubljana<br />

Slovenia<br />

Fair value of liabilities Level 1 Level 2<br />

<strong>2021</strong><br />

Level 3 Level 1 Level 2<br />

EUR<br />

2020<br />

Level 3<br />

Trade payables 145,403 0 0 16,847 0 0<br />

Other short-term payables 21,284 0 0 4,223 0 0<br />

Advances payable and other<br />

current liabilities<br />

963,058 0 0 619,151 0 0<br />

Total 1,129,744 0 0 640,221 0 0<br />

5. Related party transactions<br />

The <strong>CEF</strong> does not have related parties.<br />

The earnings of members of the Executive Management and Governing Board are presented in Note 15: Labor costs.<br />

6. Events after the statement of financial<br />

position date<br />

There were no events after the balance sheet date that would have a material effect on the financial statements<br />

for the year <strong>2021</strong>. The ongoing military conflict in Ukraine and the related sanctions targeted against the Russian<br />

Federation may have an impact on the European and global economy. The entity does not have any significant direct<br />

exposure to Ukraine, Russia or Belarus. However, the impact on the general economic situation may require revisions<br />

of certain assumptions and estimates. This may lead to material adjustments to the carrying value of certain assets<br />

and liabilities within the next financial year. At this stage, management is not able to reliably estimate the impact as<br />

events are unfolding day by day. The long-term impact may also affect trading volumes, cash flows, and profitability.<br />

Nevertheless, at the date of these financial statements, the Organization continues to meet its obligations as they fall<br />

due and therefore continues to apply the going concern basis of preparation.<br />

Tel: +386 (0) 1 3072 800<br />

Fax: +386 (0) 1 3072 900<br />

www.deloitte.si<br />


to the founders and the Governing Board of Center of Excellence in Finance<br />

Opinion<br />

We have audited the financial statements of the organization Center of Excellence in Finance (hereinafter<br />

‘the Organization’), which comprise the statement of financial position as at 31 December <strong>2021</strong>, and the<br />

statement of profit or loss, statement of other comprehensive income, statement of changes in equity and<br />

cash flow statement for the year then ended, and notes to the financial statements, including a summary<br />

of significant accounting policies.<br />

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial<br />

position of the Organization as at 31 December <strong>2021</strong>, and its financial performance and cash flows for the<br />

year then ended in accordance with International Financial Reporting Standards as adopted by the EU<br />

(hereinafter ‘IFRS’).<br />

Basis for Opinion<br />

We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under<br />

those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial<br />

Statements section of our <strong>report</strong>. We are independent of the Organization in accordance with the<br />

International Code of Ethics for Professional Accountants (including International Independence Standards)<br />

of the International Ethics Standards Board for Accountants (IESBA Code) and other ethical requirements<br />

that are relevant to our audit of the financial statements in Slovenia, and we have fulfilled our other ethical<br />

responsibilities in accordance with these requirements. We believe that the audit evidence we have<br />

obtained is sufficient and appropriate to provide a basis for our audit opinion.<br />

Other information<br />

Management is responsible for the other information. The other information comprises the information,<br />

included in <strong>Annual</strong> <strong>report</strong>, other than the financial statements and our auditor’s <strong>report</strong> thereon.<br />

Our opinion on the financial statements does not cover the other information and we express no assurance<br />

thereon.<br />

In connection with our audit of the financial statements, our responsibility is to read the other information<br />

and, in doing so, assess whether the other information is materially inconsistent with the financial<br />

statements, legal requirements or our knowledge obtained in the audit, or otherwise appears to be<br />

materially misstated. If based on our work performed we conclude that other information include material<br />

misstatement we need to <strong>report</strong> such circumstances.<br />

7. Certified auditor’s <strong>report</strong><br />

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as<br />

“Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member<br />

firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/si/about to learn more.<br />

Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our global network of member firms and related entities in more than 150 countries<br />

and territories (collectively, the „Deloitte organization“) serves four out of five Fortune Global 500®companies. Learn how Deloitte’s approximately 312,000 people make an impact that matters at<br />

www.deloitte.com.<br />

In Slovenia the services are provided by Deloitte revizija d.o.o. and Deloitte svetovanje d.o.o. (jointly referred to as “Deloitte Slovenia”) which are affiliates of Deloitte Central Europe Holdings Limited. Deloitte<br />

Slovenia is one of the leading professional services organizations in the country providing services in audit and assurance, consulting, financial advisory, risk advisory, tax and related services, through over 160<br />

national and foreign professionals.<br />

Deloitte revizija d.o.o. - The company is registered with the Ljubljana District Court, registration no. 1647105 - VAT ID SI62560085 - Nominal capital EUR 74,214.30.<br />

© 2022. For information, contact Deloitte Slovenia.

88<br />

<strong>CEF</strong> FINANCIAL REPORT <strong>2021</strong><br />


In relation to this and based on our procedures performed, we <strong>report</strong> that:<br />

Other information are, in all material respects, consistent with the financial statements;<br />

Other information are prepared in compliance with applicable law or regulation; and<br />

In relation Based<br />

to this<br />

on<br />

and<br />

our knowledge<br />

based on our<br />

and<br />

procedures<br />

understanding<br />

performed,<br />

of the Organization<br />

we <strong>report</strong> that:<br />

and its environment obtained in<br />

<br />

the<br />

Other<br />

audit,<br />

information<br />

we did not<br />

are,<br />

identify<br />

in all material<br />

any material<br />

respects,<br />

misstatement<br />

consistent<br />

of<br />

with<br />

fact<br />

the<br />

related<br />

financial<br />

to the<br />

statements;<br />

other information.<br />

Other information are prepared in compliance with applicable law or regulation; and<br />

Responsibilities Based on of our Management knowledge and and Governing understanding Board of for the the Organization Financial Statements and its environment obtained in<br />

Management the audit, is responsible we did not for identify the preparation any material and misstatement fair presentation of fact of related the financial to the statements other information.<br />

accordance with IFRS, and for such internal control as management determines is necessary to enable the<br />

preparation Responsibilities of financial of Management statements and that Governing are free Board from for material the Financial misstatement, Statements whether due to fraud or<br />

Management error. is responsible for the preparation and fair presentation of the financial statements in<br />

accordance In preparing with the financial IFRS, and statements for such internal of the control Organization, as management management determines is responsible is necessary for assessing to enable its the<br />

preparation ability to continue of financial as a going statements concern, that disclosing are free matters from material related misstatement, to going concern whether and using due to the fraud going or<br />

error. concern basis of accounting unless management either intends to liquidate the Organization or to cease<br />

In operations, preparing or the has financial no realistic statements alternative of the but Organization, to do so. management is responsible for assessing its<br />

ability Governing to continue Board is as responsible a going concern, for overseeing disclosing the matters Organization’s related to financial going concern <strong>report</strong>ing and process using the and going for<br />

concern approving basis audited of accounting annual <strong>report</strong>. unless management either intends to liquidate the Organization or to cease<br />

operations, or has no realistic alternative but to do so.<br />

Auditor’s Governing Responsibilities Board is responsible for the for Audit overseeing of the Financial the Organization’s Statements financial <strong>report</strong>ing process and for<br />

approving audited annual <strong>report</strong>.<br />

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are<br />

Auditor’s free from Responsibilities material misstatement, for the Audit whether of the due Financial to fraud Statements or error, and to issue an auditor’s <strong>report</strong> that<br />

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an<br />

Our audit objectives conducted are in to accordance obtain reasonable with auditing assurance rules will about always whether detect the a financial material statements misstatement as a when whole it are<br />

free exists. from Misstatements material misstatement, can arise from whether fraud due or error to fraud and are or error, considered and to material issue an if, auditor’s individually <strong>report</strong> that in the<br />

includes aggregate, our they opinion. could Reasonable reasonably assurance be expected is a to high influence level of the assurance, economic but decisions not a of guarantee users taken that on an the<br />

audit basis of conducted these financial accordance statements. with auditing rules will always detect a material misstatement when it<br />

exists. Misstatements can arise from fraud or error and are considered material if, individually or in the<br />

aggregate, As part of an they audit could in accordance reasonably with be expected auditing to rules, influence we exercise the economic professional decisions judgment of users and taken maintain on the<br />

basis professional these scepticism financial statements. throughout the audit. We also:<br />

As part of Identify an audit and in assess accordance the risks with of auditing material rules, misstatement we exercise of the professional financial statements, judgment and whether maintain due to<br />

professional fraud scepticism or error, design throughout and perform the audit. audit We procedures also: responsive to those risks, and obtain audit<br />

evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not<br />

detecting Identify and a misstatement assess the risks resulting of material from misstatement fraud higher of than the financial for one resulting statements, from whether error, as due fraud to<br />

may fraud involve or error, collusion, design and forgery, perform intentional audit procedures omissions, responsive misrepresentations, to those risks, or the and override obtain of audit<br />

internal evidence control. that is sufficient and appropriate to provide a basis for our opinion. The risk of not<br />

detecting a misstatement resulting from fraud is higher than for one resulting from error, as fraud<br />

Obtain may involve an understanding collusion, forgery, of internal intentional control omissions, relevant to misrepresentations, the audit in order to or design the override audit of<br />

procedures internal control. that are appropriate in the circumstances, but not for the purpose of expressing an<br />

opinion on the effectiveness of the Organization's internal controls.<br />

Obtain an understanding of internal control relevant to the audit in order to design audit<br />

Evaluate procedures the that appropriateness are appropriate of accounting the circumstances, policies used but and not the for reasonableness the purpose of expressing of accounting an<br />

estimates opinion on and the related effectiveness disclosures of the made Organization's by management. internal controls.<br />

Conclude Evaluate the on appropriateness the appropriateness of accounting of management’s policies used of and the the going reasonableness concern basis of of accounting accounting<br />

and, estimates based and on related the audit disclosures evidence obtained, made by management.<br />

whether a material uncertainty exists related to<br />

events or conditions that may cast significant doubt on the Organization’s ability to continue as a<br />

going Conclude concern. the If appropriateness we conclude that of a management’s material uncertainty use of exists, the going we are concern required basis to of draw accounting<br />

attention and, based in on our the auditor’s evidence <strong>report</strong> to obtained, the related whether disclosures a material in the uncertainty financial statements exists related or, if to such<br />

events or conditions that may cast significant doubt on the Organization’s ability to continue as a<br />

going concern. If we conclude that a material uncertainty exists, we are required to draw<br />

attention in our auditor’s <strong>report</strong> to the related disclosures in the financial statements or, if such<br />

disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit<br />

evidence obtained up to the date of our auditor’s <strong>report</strong>. However, future events or conditions<br />

may cause the organization to cease to continue as a going concern.<br />

disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit<br />

Evaluate evidence the obtained overall up presentation, to the date of structure our auditor’s and content <strong>report</strong>. of However, the financial future statements, events or conditions including the<br />

disclosures, may cause the and organization whether the to financial cease to statements continue as represent a going concern. the underlying transactions and<br />

events in a manner that achieves fair presentation.<br />

Evaluate the overall presentation, structure and content of the financial statements, including the<br />

We communicate disclosures, with and Governing whether the Board financial regarding, statements among represent other matters, the underlying the planned transactions scope and and timing of<br />

the audit events and significant in a manner audit that findings, achieves including fair presentation. any significant deficiencies in internal control that we<br />

identify during our audit.<br />

We communicate with Governing Board regarding, among other matters, the planned scope and timing of<br />

the audit and significant audit findings, including any significant deficiencies in internal control that we<br />

identify during our audit.<br />


Yuri Sidorovich<br />

Certified DELOITTE auditor REVIZIJA d.o.o.<br />

Yuri Sidorovich<br />

Ljubljana, Certified auditor 6 May 2022<br />

Ljubljana, 6 May 2022

90 <strong>CEF</strong> BUSINESS REPORT <strong>2021</strong><br />

91<br />

In <strong>2021</strong>, the <strong>CEF</strong> hosted two IMF FAD Regional Advisors: Ms. Suzanne Flynn,<br />

covering public financial management (PFM), and Mr. Allan Jensen, covering<br />

revenue administration (RA). Together with two other IMF colleagues, Mr. Bojan<br />

Pogačar (PFM) and Mr. Dmitri Jegorov (RA), based at the Joint Vienna Institute<br />

in Vienna, 1 they facilitate the implementation of an IMF project to support<br />

capacity development (CD) in the areas of PFM and RA in Southeast Europe<br />

(SEE). The recipient countries are Albania, Bosnia and Herzegovina, Kosovo,<br />

Montenegro, North Macedonia, and Serbia.<br />

This project is delivered with financial support from the European Union and<br />

the Swiss State Secretariat for Economic Affairs (SECO). 2 A set of delivery milestones<br />

are agreed on for each country in terms of reform progress in the areas<br />

that are addressed by the project. The program’s delivery model involves IMF<br />

Headquarters’ (HQ) led CD missions to the beneficiary countries; regular CD<br />

visits by IMF Regional Advisors; CD support provided remotely; and a considerable<br />

number of CD visits by short-term IMF experts. 3 The table below gives<br />

a broad overview of the program focus areas, key activities, and preliminary<br />

outcomes in <strong>2021</strong>.<br />

Despite the Covid-19 travel restrictions, the CD program progressed through<br />

remote online missions, conducted successfully with the cooperation of the<br />

authorities of each country. In addition, short regional webinars were held to<br />

disseminate good practice in light of the pandemic and enable countries to<br />

share their respective experiences. The annual project Steering Committee<br />

meeting was held online in collaboration with the <strong>CEF</strong>.<br />

The IMF advisors cooperate closely with the <strong>CEF</strong> on training needs assessments<br />

in the areas of PFM and RA in SEE countries, and the design and delivery<br />

of training and other input to some of the <strong>CEF</strong>’s learning activities. Coordination<br />

meetings are held with <strong>CEF</strong> staff every quarter, involving HQ-based<br />

IMF staff.<br />


IMF Advisors’ Report<br />

1 Due to the COVID-19 situation, the two Vienna based advisers delivered remote CD support<br />

from their home countries.<br />

2 In 2020, SECO provided financial support to RA only; however, from January <strong>2021</strong> PFM was<br />

also supported.<br />

3 Most of the CD activities were delivered remotely using web-based communication tools and<br />


92 <strong>CEF</strong> ANNUAL REPORT <strong>2021</strong><br />

APPENDIX 93<br />



CD Focus Areas CD Activities Examples of Outcomes<br />


CD Focus Areas CD Activities Examples of Outcomes<br />

Stronger PFM laws and<br />

Institutions, including<br />

PFM reform strategies<br />

Budget execution<br />

and controls are<br />

strengthened.<br />

Appraisal, selection<br />

and implementation of<br />

public investment are<br />

improved<br />

Cash and debt<br />

management are<br />

strengthened and better<br />

integrated<br />

Strengthened<br />

management of fiscal<br />

risk, particularly in<br />

light of the Covid-19<br />

pandemic.<br />

HQ missions (3)<br />

Short-term experts (10)<br />

Regional online training<br />

course (1)<br />

Ongoing remote support<br />

from two Regional Advisors<br />

and HQ staff<br />

Covid-19Most of these<br />

activities were delivered<br />

remotely using web-based<br />

communication tools<br />

(Webex, Zoom)<br />

The Covid-19 situation impacted reforms and day-today<br />

operations across all ministries of finance in the<br />

region. Despite this, various results where achieved<br />

as highlighted below.<br />

• New PFM reform strategies (<strong>2021</strong>–2025) have<br />

been developed by the state institutions, the<br />

Federation, Republika Srpska, Brčko District and<br />

State level in Bosnia and Herzegovina. A first draft<br />

of the comprehensive PFM Reform Strategy has<br />

been completed and submitted for adoption to the<br />

entities’ leadership.<br />

• All countries are in the process of developing new<br />

PFM strategies and have continued to hold PFM<br />

dialogues remotely.<br />

• All countries in the region had completed Public<br />

Investment Management Assessments by the<br />

end of <strong>2021</strong> and have started to implement the<br />

recommendations.<br />

• Albania is actively working to reduce the risk and<br />

management of arrears and other fiscal risks.<br />

• Serbia and Albania have set up and staffed<br />

dedicated public investment management units<br />

and capacity is being developed to enhance<br />

investment outcomes.<br />

• Other countries in the region (Albania, Kosovo,<br />

Montenegro, North Macedonia, Serbia) have<br />

improved or are improving their legal and<br />

regulatory frameworks for public investment<br />

management.<br />

• Countries are incrementally improving the<br />

disclosure of fiscal risks in fiscal strategy<br />

documents and budget documents.<br />

• Fiscal Risk units have been institutionalized<br />

in Albania and Serbia, and capacity is further<br />

enhanced in Kosovo.<br />

• Analytical models and data flows to the ministries<br />

of finance or economy are improving to enable<br />

the monitoring of fiscal risks emanating from<br />

public corporations across the region (e.g. Albania,<br />

Bosnia and Herzegovina, Kosovo, Montenegro, and<br />

Serbia).<br />

Improving<br />

governance,<br />

organization<br />

structures, and<br />

Human Resource<br />

Management (HRM).<br />

Developing Medium-<br />

Term Revenue<br />

Strategies (MTRS).<br />

Implementing<br />

modern Compliance<br />

Risk Management<br />

(CRM) methodology,<br />

including industrybased<br />

compliance<br />

strategies.<br />

Strengthening tax<br />

auditing<br />

Consolidating core<br />

tax functions in fewer<br />

offices.<br />

Strengthening tax<br />

debt collection.<br />

Strengthening<br />

compliance<br />

efforts for large<br />

corporations.<br />

Improving IT systems.<br />

HQ missions (4)<br />

Short-term<br />

experts (37)<br />

Regional<br />

workshops (2)<br />

Substantial<br />

ongoing remote<br />

support from<br />

two Regional<br />

Advisors.<br />

Due to the<br />

Covid-19<br />

situation, all<br />

activities were<br />

delivered<br />

remotely using<br />

web-based<br />

communication<br />

tools (e.g.,<br />

WebEx and<br />

Zoom).<br />

The Covid-19 situation has continued to impact significantly on reforms and<br />

day-to-day operations across all tax administrations in the region. Despite<br />

this, they were able to consolidate achievements in earlier years and<br />

progress further. These are some highlights:<br />

• Multiyear reform programs are in place in all tax administrations, and<br />

governance and management approaches continue to improve. Both<br />

Kosovo and Serbia have developed new corporate strategies.<br />

• Major IT development projects are being implemented in Albania,<br />

Kosovo, North Macedonia, Montenegro, and Serbia to replace or<br />

upgrade outdated IT systems. In most places, these efforts include<br />

putting in place “fiscalization systems” (real-time electronic <strong>report</strong>ing of<br />

invoice and cash register data to the tax administrations).<br />

• In many places it is now obligatory for taxpayers to file their tax<br />

declarations electronically – and tax administrations deliver most of<br />

their services to taxpayers electronically.<br />

• Some tax administrations have consolidated their tax debt collection<br />

functions in fewer offices, for example Albania – three Collection<br />

Centers and the Large Taxpayer Office (down from 14 offices); Kosovo<br />

– one Collection Center (down from 10 offices). Kosovo has also<br />

consolidated the VAT refund function in one office. In Albania, the VAT<br />

refund process is conducted through e-services.<br />

• Modern compliance risk management methodology continues to be<br />

phased in across all tax administrations. In addition to industry projects<br />

(e.g. tourism, restaurants, and construction) some tax administrations are<br />

also focusing on major risk clusters related to tax types (e.g. Albania and<br />

Serbia – personal income tax for high-wealth individuals; Kosovo – VAT).<br />

In Bosnia and Herzegovina, the Indirect Taxation Authority’s CRM system<br />

now also covers customs, and a Customs Compliance Strategy is in place.<br />

• Some tax administrations continue to invest in the development of<br />

capacity in data analytics to enable better identification of major<br />

compliance risk clusters (Albania and Serbia). This will enable them<br />

to allocate resources where they are most useful in terms of tax gap<br />

reduction chances.<br />

• The Albanian tax administration is now operating the automatic<br />

exchange system (OECD standards) for financial account information<br />

to/from 72 foreign jurisdictions.<br />

• In Bosnia and Herzegovina, a Rulebook on Indirect Audit Methods and<br />

a Law on Origin of Assets (RSTA) have been adopted; an IT system<br />

solution is in place for collecting invoice data for CRM purposes and<br />

to improve the VAT revenue sharing mechanism; and the MoU on data<br />

exchange between the four tax administrations has been revised.<br />

• The tax audit and debt collection functions are gradually improving across<br />

most administrations. In the BiH ITA, new audit manuals and a quality<br />

assurance system is in place. In Kosovo, an Audit Improvement Strategy is<br />

in place and several audit techniques guides have been developed.<br />

• The use of key performance indicators as a management tool to<br />

achieve higher organizational performance in key areas has begun<br />

to take root in some administrations (e.g. Albania, Kosovo, North<br />

Macedonia, and Montenegro).


<strong>CEF</strong> ANNUAL REPORT<br />





FOR 2020<br />




Published by: <strong>CEF</strong><br />

Production editor: Urška Miklič<br />

Text editor: Kadri Põdra<br />

Design: Sonja Eržen<br />

Photographs: <strong>CEF</strong> Archive, Aleksander Kovačič & Urška Rahne<br />

Illustrations: Alenka Oblak & Mireille van Bremen<br />

Printing: Tiskarna Januš<br />

May 2022

About us<br />

The <strong>CEF</strong> is an international organization with the mission<br />

to support capacity development for finance officials in<br />

SEE through learning. We work with our constituency to<br />

support their public financial management, tax policy and<br />

administration, and central banking reform efforts. We do<br />

this through innovative, participatory, and practical learning<br />

solutions. The <strong>CEF</strong> serves as a knowledge hub for the region.<br />

We combine topical expertise and in-depth knowledge of<br />

countries in the region with a good comprehension of how<br />

reforms take place. We know how to nourish and expedite<br />

learning among individuals and institutions.<br />

<strong>CEF</strong><br />

Cankarjeva 18<br />

SI-1000 Ljubljana<br />

Slovenia<br />

T.: +386 1 369 6190<br />

info@cef-see.org<br />

www.cef-see.org<br />

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