CEF Annual report 2021

2021
CEF Annual Report
Supporting capacity development of public
officials and their institutions in South East Europe
through learning and knowledge sharing

LEGEND
ACRONYMS
Blended learning is
a combination of online
learning activity and
face-to-face workshop /
Hybrid event
Round-table discussion
Webinar / Online course /
Online meeting
CIPFA
EU
ERP
FISR
Chartered Institute
of Public Finance and
Accountancy
European Union
Economic Reform
Programme
Fiscal Implications
of Structural Reforms
CEF
Annual Report
2021
Conference
GIZ
Deutsche Gesellschaft
für Internationale
Zusammenarbeit
Workshop
IMF
International Monetary
Fund
Seminar
High-level meeting
IT
IPSAS
ODI
Information Technology
International Public Sector
Accounting Standards
Overseas Development
Institute
In-country certification
program
PACT
Public Accountants
Certification Training
Country visit / Study visit
PFM
Public Financial
Management
Lecturing experts
SDG
Sustainable Development
Goal
Meeting
SEE
South East Europe
TIAPS
Training of Internal Audit
in the Public Sector

CONTENTS
CHAIR OF THE CEF GOVERNING BOARD’S WELCOME................................... 6
DIRECTOR’S WELCOME..................................................................................... 7
BUSINESS REPORT..................................................11
OUR APPROACH TO LEARNING .....................................................................13
People at the Center of Learning ..................................................................15
CEF Methodology of Becoming and Being a Learning Organization .........16
Monitoring, Evaluation and Learning.............................................................18
LEARNING AND KNOWLEDGE SHARING PROGRAM....................................21
Learning and Knowledge Sharing Program Highlights................................22
Leadership for Managing Reforms ...............................................................24
Public Financial Management........................................................................28
Budget Preparation and Execution ............................................................................28
Accounting ...................................................................................................................31
Auditing ........................................................................................................................32
Tax Policy and Administration .......................................................................34
Central Banking ..............................................................................................37
Data and Analysis for Designing Policies .....................................................38
CEF – 20 years of capacity development in SEE .......................................40
GOVERNANCE...................................................................................................43
Governing Board .............................................................................................44
Strategic Direction 2022–2026 .................................................................................46
Advisory Board ................................................................................................48
Coordinators ....................................................................................................52
Secretariat .......................................................................................................54
FINANCIAL REPORT.................................................59
APPENDIX: IMF Advisors’ Report ..................................................................90

6 CEF ANNUAL REPORT 2021 CEF ANNUAL REPORT 2021 7
CHAIR OF THE CEF GOVERNING
BOARD’S WELCOME
DIRECTOR’S WELCOME
Dear colleagues,
Dear friends,
The year 2021 was an important
milestone for Slovenia and for the
CEF. Slovenia’s presidency of the CEF
Governing Board coincided with Slovenia’s
presidency of the Council of the European
Union (EU) and the 30 th anniversary of
national independence. It was also a
jubilee year for the CEF, that celebrated
its 20 th anniversary.
It is my pleasure to present you with
the CEF Annual Report, highlighting the
results that we together achieved in
2021. With each annual report comes
an opportunity to reflect on how we
have been progressing in our vision to
inspire public officials, both individuals
and teams, to shape institutional
governance that drives successful
economies and fair societies.
In 2001, the CEF started out as a small Slovenian institution;
today, it is an international organization based in
Slovenia. It was the Slovenian Ministry of Finance that,
in consultation with the International Monetary Fund
(IMF), decided to establish an institution with a mission
to share knowledge and experience in institution building
and capacity development in the area of public finance
in the Western Balkans. From its modest beginning
with only a handful of staff, the CEF has evolved
into a world-renowned center of knowledge in Southeast
Europe (SEE).
The Slovenian Ministry of Finance has been the largest
consistent donor to the CEF program right from the start.
Our close partnership in these twenty years has been an
opportunity to exchange best practices and knowledge
between the two institutions. Experience has shown that
strong and resilient partnerships are crucial for development
and growth. This goes also for the close cooperation
of the CEF with its regional members.
The strength of every partnership demonstrates itself
in challenging times. We have witnessed this in the last
two years: the CEF has proved to be a resilient and flexi-
ble partner, while ensuring knowledge to its partners. In
2021, the CEF outstandingly implemented its planned
program and delivered almost one hundred events over
the year. The efforts of the whole CEF team and its partners
towards a common goal in the changing global and
regional circumstances have been comprehensive.
Many challenges in SEE and beyond remain, and new
challenges and difficulties are arising every day. It is important
to make sure that the institutions in the region
and its people remain strong, resilient to change, and
adaptive to new circumstances. The mission of the CEF
is just that – to actively build through knowledge and
partnership.
Now that Slovenia’s mandate for the presidency of the
CEF Governing Board is coming to an end and Albania
will take over, allow me to thank the whole CEF community.
I wish Albania a successful presidency and many
accomplishments in achieving our mutual objectives in
the coming year.
Andrej Šircelj
Minister of Finance, Slovenia
In 2021, an important achievement was the confirmation
of our strategic direction until 2026. It reflects the CEF’s
20 years of experience and is based on our thorough understanding
of the opportunities and challenges of this
region. For the first time, we made the CEF’s value-added
explicit by developing our own methodology to support
public institutions in becoming and being learning organizations.
Our primary target audiences continue to be ministries
of finance, central banks and tax administrations.
Together, we collaborate with other public institutions, especially
line ministries. As experts in learning and knowledge
sharing on finance, we put people at the center of
our activities.
When it comes to the program implementation in 2021,
we continued to face similar challenges as the year before.
Nevertheless, we were able to successfully carry out our
plans and in total developed, designed and delivered 98
events, most of them still online. To remain agile and adapt
to circumstances, we invested in technologies to support
events in a hybrid format. We facilitated four hybrid events,
providing access to learning also to those unable to attend
events in person. Agility was also reflected in the way we
worked as a team: we continued to combine work from our
headquarters and telework. Accordingly, we adapted our
physical space that the team shares at our headquarters
in Ljubljana to be a role model for other institutions.
An annual overview is an opportunity to celebrate the
achievements of all who contributed to our continuous
progress. Our team joined forces with important stakeholders
of the CEF community: Governing Board and
Advisory Board members, CEF Coordinators, numerous
donors and partners, and affiliated international and regional
experts. Together we engaged 2,938 participants
to learn and share knowledge. In collaboration, we published
seven knowledge products to accentuate our learning
offer. My sincere appreciation goes to each member
of the CEF community. You again showcased your undermined
commitment to our mission and the belief in the
potential of people in SEE.
Looking ahead, we continue to have ambitious plans to
further develop in our role as a globally recognized knowledge
hub. As we implement our strategy, we will continue
to broaden our community and connect people to learn.
Our region is rich with vibrant cultures and people that
have amazing talents. It is on all of us to leverage from
this, seize the opportunities, and create ones ourselves.
Rather than remaining idle or even despairing, let’s all
keep in mind that we have a choice, as well as a commitment,
to the generations behind us to act.
Jana Repanšek
Director

8 CEF ANNUAL REPORT 2021 CEF ANNUAL REPORT 2021 9
OUR MISSION
We support capacity development of public officials
and their institutions in SEE through learning
and knowledge sharing.
OUR WORK
We combine topical expertise in the fields of public
financial management (PFM), tax policy and
administration, central banking and data and
analysis for designing policies (DAP) in the region
with a good grasp of leadership skills required to
manage reforms. We do this through innovative,
participatory, and practical learning solutions.
Our staff knows how to nurture and deepen
learning among individuals and institutions.
OUR HISTORY
Today, we are a leader in applying people-centered
learning approaches and holding the knowhow
of becoming and being a learning organization.
In 2015, the CEF became an international
organization after 14 very successful years as a
regional institution. We were established in 2001
under the Stability Pact for South East Europe by
the Slovenian Government, at the initiative of the
Slovenian Ministry of Finance and in close cooperation
with other ministries of finance of former
Yugoslav countries and Albania.
OUR CONSTITUENCY
We primarily serve ministries of finance, tax administrations,
and central banks in Albania, Bosnia
and Herzegovina, Bulgaria, Croatia, Kosovo,
Moldova, Montenegro, North Macedonia, Romania,
Serbia, Slovenia, and Turkey. We also address
capacity development needs of line ministries
and other key stakeholders and are present
in some other countries.

BUSINESS
REPORT

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

14 CEF BUSINESS REPORT 2021
OUR APPROACH TO LEARNING 15
People at the Center of Learning
Putting the learner at the center of our activities is essential
in our work. We cultivate a human-centered approach
internally and externally, to better understand the needs of
those we serve in our mission.
We demonstrate our learning approach in practice by adapting flexibly and
innovatively to the changes we notice in our environment, the learning needs we
capture, and the feedback we receive.
Our learning approach addresses different learning needs. For this purpose, we
have selected and implemented a set of learning formats. They show our diversity
and expertise in what we can organize and carry out. They can be organized
in classrooms, online, or as combined (blended/hybrid) events, and they are of
different duration. Microlearning activities, such as video lectures or webinars,
are short; macrolearning activities are of longer duration, e.g. 2.5-day workshops
and online courses, or certification programs for public sector accountants and
auditors (PACT and TIAPS) that take one year or more.
CREATIVE LEARNING ENVIRONMENT
OUR LEARNING ENVIRONMENT THAT AFFECTS LEARNERS’ CREATIVITY INCLUDES:
PHYSICAL
ENVIRONMENT
VIRTUAL
LEARNING
SPACES*
LEARNER AND
KNOWLEDGE PROVIDERS’
ENGAGEMENT
CLASSROOM
(LEARNING)
ATMOSPHERE
* Online Learning Campus, Line Ministries Portal, other online (meeting and social media) platforms

16 CEF BUSINESS REPORT 2021
OUR APPROACH TO LEARNING 17
CEF
Methodology
of Becoming
and Being
a Learning
Organization
FUNDS FOR
LEARNING AND
KNOWLEDGE
SHARING
CEF METHODOLOGY - SIX BUILDING BLOCKS
COMMUNICATION
ABOUT LEARNING
In the past decade, we transformed into
a learning organization and knowledge
hub. This led us to deeper thinking and
research on the topic and to develop
our own methodology of how an institution
can become a learning organization.
We understand that a successful
knowledge-sharing culture favors the
continuous exchange of information,
knowledge and experience between
individuals, teams and institutions.
Consequently, it fosters organizational
growth and performance.
GOVERNANCE
AND CULTURE
KNOWLEDGE
CAPTURING,
PACKAGING AND
SHARING
MONITORING
AND
EVALUATION
PARTNERSHIPS
This methodology consists of six building
blocks and reflects our value-added in
promoting lifelong learning and knowledge
sharing within and across public
institutions. With our learning activities,
we actively support all public officials,
regardless of their roles, to be leaders of
change, who operate flexibly and find new
ways to function and engage with other
public institutions, and above all civil, academic
and business environments.
One of the cornerstones of the CEF’s strategic direction is our
people-centered learning approach and know-how of becoming
and being a learning organization. This approach focuses on
public officials, teams and institutional governance in their respective
countries. By applying it, we are striving to ultimately
contribute to improving their economies and societies.
We further defined this in our Strategic
Direction 2022–2026, where we also
pinpointed the strategic priorities of our
member institutions and how we can
advance (some of) them. We also examined
the challenges and opportunities
that we have envisaged for SEE. For further
details see Chapter “Strategic Direction
2022–2026”.
We also promote a flexible and agile work environment. We
have adjusted our office space and online collaboration tools to
stimulate focus, inspire collaboration, and support our evolving
organizational culture.
Through practicing the principles of a learning organization, we
have strengthened our competencies. This has led to the organizational
growth of the CEF and an increase in the overall
scope, quality, and impact of our activities.

18 CEF BUSINESS REPORT 2021
OUR APPROACH TO LEARNING 19
Monitoring, Evaluation and Learning
We frame the scope of activities and set priorities in our annual
learning and knowledge-sharing program. We develop project-related
results frameworks, internal change initiatives as well as specific
objectives for each activity.
To demonstrate the value we create, we use a wide
range of quantitative indicators, such as participation
statistics and surveys from our events, complemented
by qualitative information gathered in exchange with the
key stakeholders.
In promoting a learning culture, we value open and direct
feedback, and develop processes to loop the lessons
learned back into improving our daily work and reviewing
our strategic direction. We pay special attention
to unaddressed learning needs, opportunities for knowledge
sharing, and how new knowledge is applied.
We link our annual performance plans to the above
mentioned priorities at the institutional, team and personal
levels. As part of monitoring the risks, we regularly
reassess these targets and decide whether any mitigation
is needed. We do that also by nurturing the co-ownership
of the targets that we set.
To collect feedback, we use a range of tools and opportunities
through carrying out evaluation surveys after the
events, gathering experts’ reports on their CEF missions,
capturing value creation stories about behavioral changes,
and promoting structured evaluation conversations.
In 2021, we continued with frequent consultations with
key officials from our constituency and governing bodies
as well as other partner institutions. This helped us gain
a deeper understanding of individual learners’ motivation.
They also proved to be of great support when developing
our strategic document.
It is also important to note that the highest value lies in
our staff who are highly result-oriented. By implementing
a continuous performance management system, we aim
to get better alignment with our mission, increase transparency,
ownership and effectiveness, and reduce the
duplication of efforts.
RISK MANAGEMENT
Our risk management process supports decision-making
and planning, increases managerial
accountability, and ultimately leads to
greater efficiency and effectiveness. It also
improves service quality and supports the
ongoing change management efforts that the
CEF needs to undergo to thrive as a learning
organization. The protracted pandemic further
increased the importance of risk management.
We have additionally considered the challenges
related to staff well-being and engagement,
and the operational risks stemming from extended
periods of teleworking.
Other preventive measures to foresee and mitigate
the consequences of Covid-19 related
risks addressed:
• policies and procedures
• facilities, supplies and finances
• learning and training
• communication and messaging
All of them were evaluated in the context of our
working environment and external factors.

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

22 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 23
2021
Learning and Knowledge
Sharing Program Highlights
The 2,938 participants, who attended 98 learning and
knowledge sharing activities with 228 lecturing experts
in 2021, accumulated a total of 4,744 participant
learning days.
In 2021, the Covid-19 pandemic contributed once more
to the majority of events being delivered either online, hybrid
or face-to-face at the CEF headquarters and in the
region.
98 4,744 228
LEARNING &
KNOWLEDGE
SHARING
ACTIVITIES
7
KNOWLEDGE
PRODUCTS
PARTICIPANT
LEARNING DAYS
2,938
PARTICIPANTS
LECTURING
EXPERTS
Our work includes also capturing and packaging knowledge
and experience through different types of printed
and digital knowledge products. In 2021, we produced
seven of them. They include various categories: recommendations,
findings, insights, good practices, and the
lessons learned. We repackage knowledge in a format
(videos, printed and online publications, reports and
other materials) that enables further sharing.
COUNTRY
ALL PARTICIPANTS
FACE-TO-FACE
PARTICIPANTS
(non-financed)
Participation costs (travel and accommodation) for in-person
events were either financed through project funding
or by a sponsoring institution, i.e., an employer or a donor.
For in-kind attendance, costs are estimated at EUR 200
per participant per day plus EUR 500 for airfare. In-kind
attendance from institutions situated in the country of
the event location and for participants of online learning
events is estimated at nil travel and accommodation cost.
ALL
DAYS
FACE-TO-FACE
DAYS
(non-financed)
COSTS
EUR
Albania 255 7 448.00 15.00 6,500
Bosnia and Herzegovina 272 0 424.75 0.00 0
PARTICIPANTS BY THEMATIC AREA
Bulgaria 86 1 99.25 2.00 900
Croatia 59 0 101.00 0.00 0
GOVERNANCE (129)
4 %
OUTREACH (43)
1 %
DATA AND ANALYSIS FOR
DESIGNING POLICIES (339)
12 %
ACCOUNTING (483)
16 %
AUDITING (354)
12 %
BUDGET PREPARATION
AND EXECUTION (541)
18 %
LEADERSHIP FOR
MANAGING REFORMS (511)
17 %
CENTRAL BANKING (267)
9 %
TAX POLICY AND
ADMINISTRATION (271)
9 %
Kosovo 142 3 233.75 7.00 2,900
Moldova 268 1 315.00 0.75 650
Montenegro 172 7 288.75 14.00 6,300
North Macedonia 440 39 1,066.25 78.00 35,100
Romania 114 0 182.00 0.00 0.00
Serbia 318 3 336.75 6.00 2,700
Slovenia 146 0 142.00 0.00 0.00
Turkey 342 2 517.25 5.00 2,000
TOTAL (CEF constituency) 2614 63 4,154.75 127.75 57,050
OTHER COUNTRIES 324 16 589.25 24.30 12,850
TOTAL 2938 79 4744.00 152.00 69,900
OTHER COUNTRIES:
Armenia, Austria, Azerbaijan, Belgium, Egypt, Estonia, France, Georgia, Germany, Greece, Hungary, Indonesia, Ireland,
Jordan, Latvia, Lithuania, Malta, Mongolia, Morocco, Pakistan, Poland, Slovakia, Switzerland, Tajikistan, Ukraine, the
Netherlands, the United Kingdom, United States of America

24 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 25
EVENTS
Leadership for
Managing Reforms
In 2021, we evolved our vision of this
thematic area. With it, we aim to support
people, teams, and institutions to envision,
design and implement policy reforms.
We see public officials as confident and
networked leaders of ideas, people, and reforms.
That is why we offer learning events
that stimulate institutional and personal capacities and
growth. We do so by focusing on communication, problem-solving,
networking, digital skills, policy cycles, and
management.
We also aim to support the teams in institutions in organizing
work based on trust and values, through exploring modalities
for joint problem-solving that work best for them,
bringing in innovation and spirit of joint achievements.
We firmly believe public institutions can advance as
knowledge-centered, resilient, and innovative organizations.
To support this, we offer our own institutional
experience in knowledge sharing, leadership, and nurturing
organizational culture. We provide learning on
inter-governmental policy coordination and collaboration,
foresight and strategic planning, and resilience.
In 2021, we saw numerous examples of leadership at all
levels and corners of our constituency and partners. Living
and working with the pandemic, handling the multifaceted
agendas of economic recovery intertwined with digital and
green transformations. All this made the public officials
braver, innovative, with improved digital and face-to-face
communication skills, inclusive and caring of many different
interests and people. The public institutions, their
teams, and individuals continued to go forward.
Natasha Ilijeva Acevska
Senior Program Officer and thematic area lead
CEF
New Thinking on Economic Growth
Stakeholder Mobilization for Successful
Structural Reforms*
Role of Communications in Reform Processes
Innovation in Public Finance:
Listen-Share-Connect-Cocreate
Network of Regional Experts in Structural
Reforms
Effective Participation in Virtual Meetings**
Strategic Human Resource Management and
Employee Performance Management in Public
Institutions
The Role of International Relations Department
in Support of Institutional Partnerships
Exploring the Future Through the Lens of
Public Finance Institutions
2022–2024 ERP Launch
Revenue Administration and PFM Reform in
SEE - Annual Coordination Meeting
Interinstitutional Knowledge Sharing on HRM’s
Strategic Role in Public Finance Institutions,
study visit for Moldovan public institutions
* Seven events organized for Albania, Bosnia and Herzegovina,
Kosovo, Montenegro, North Macedonia, Serbia and Turkey
** Online course for the Ministry of Foreign Affairs (Diplomatic
Academy), Slovenia
KNOWLEDGE PRODUCTS
• Posters on Listening and Communication
Skills
• Mind Maps and Conversational Poster
PROGRAM DONORS
• EU
• IMF
• Ministry of Finance, Slovakia
• Ministry of Finance, Slovenia
• State Secretariat for Economic Reforms
(SECO)

26 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 27
VOICES
FROM THE REGION
Participation in this workshop helped me understand the new approach
for costing of structural reforms, and how these reforms will
gain value after costing them according to this approach.
— VALION CENALIA, MINISTRY OF FINANCE AND ECONOMY, ALBANIA
At present, I am trying to apply all the acquired knowledge in preparing
the ERP in the Republic of Srpska. It is crucial to work on
yourself and to improve yourself through constant learning. The
CEF is a perfect place for gaining new knowledge, practices and
ideas that are applicable in my everyday duties.
— JELENA POPOVIĆ, MINISTRY OF FINANCE OF REPUBLIC OF SRPSKA,
BOSNIA AND HERZEGOVINA
The learning initiatives of the FISR project, organized by the CEF,
have improved several aspects of my work and have made a great
contribution to the overall ERP process as well as my personal
achievements.
— ZANA RADONIQI, MINISTRY OF FINANCE, LABOR AND TRANSFERS, KOSOVO
Being new to this area of work, it was very useful to get an overview
of how things work in practice. The course also gave me ideas how
to apply some of the discussed subject matters in my line of work.
— MARKO BJELICA, MINISTRY OF ECONOMIC DEVELOPMENT, MONTENEGRO
I would like to thank the CEF team for their FISR learning and knowledge
sharing activities in the past two years that have improved
our capacities for streamlining the ERP coordination process, better
identification of structural challenges and easier, smoother
drafting of reform measures, which has ultimately increased the
quality of the Economic Reform Programme of North Macedonia.
— ANDRIJA ALEKSOSKI, MINISTRY OF FINANCE, REPUBLIC OF NORTH MACEDONIA
The structure of webinars was in line with the defined goals and
my personal needs in the area of programing and budgeting of the
ERPs. I learned a lot from the experts and I will use their recommendations
in my further work in the area of the ERP.
— SLOBODANKA MARJANOVIĆ, MINISTRY OF ECONOMY, SERBIA
The CEF online training course highlighted the key challenges of
our structural reform agenda on the ERP. It encouraged me to improve
the process and share relevant information to the authorized
officials in Turkey. Me and my colleagues are eager to improve the
policy-making process in the best way.
— FUNDA BOZKURT, PRESIDENCY OF THE REPUBLIC OF TURKEY
FISCAL IMPLICATIONS
OF STRUCTURAL
REFORMS (FISR)
FISR is a multi-beneficiary project
implemented by the CEF and funded
by the EU. The project is targeted
to the EU candidate countries and
potential candidates in the Western
Balkans and Turkey. It aims to
strengthen the analytical capacities
needed for a comprehensive assessment
of fiscal implications of the
structural reforms, promote greater
fiscal policy coordination among relevant
authorities, and stimulate the
exchange of good practices in the
region. It was launched in 2019 and
will end in April 2022.
In 2021, the project continued to
support the ERP process through
numerous learning activities, policy
dialogues, and knowledge products.
We facilitated regional inputs into
amending the European Commission’s
(EC) ERP Guidance Note, thus
securing the bottom-up approach,
and organized the launch of the
ERP process each year.
GOING LOCAL
In the autumn of 2021, we returned physically to the
beneficiary countries and delivered five face-to-face
events. The positive feelings of reconnection and
sense of community were reinforcing for both the
country teams and the CEF colleagues and experts.
We delivered 20 in-country customized learning initiatives
in the local languages of participants from
the seven project countries. The focus was maintained
on the costing and budgeting of structural
reforms, while in 2021, it was complemented with
strengthening the capacities for engaging the external
stakeholders in the ERP and estimating the
impact assessment of reforms.
At these events, we provided the combined teams of
line ministries and finance ministries with an online
environment and a platform for connecting, exchanging
knowledge, and solving problems together.
DISCOVER MORE
We invite you to experience our enriched learning offer by visiting:
• Everything you wanted to know about structural reforms:
https://www.cef-see.org/fisr-everything-about-sr
• DIGITAL STORY TELLING:
https://centerofexcellenceinfinance.exposure.co/
• LINE MINISTRIES PORTAL:
www.lineministries.org
GOING REGIONAL
• PUBLICATIONS:
www.cef-see.org/publications
12 regional events we organized in various formats:
online, face-to-face and hybrid, including
workshops, online courses, webinars, a high-level
policy dialogue, and meetings for launching the
ERP cycle.
We tackled topics that are in direct support of the
ERP process, especially exploring a post-Covid-19
vision for the ERP process, performance-based
budgeting, monitoring structural reforms, as well
as topics around the accounting related to structural
reforms. We also worked on increasing the
capacity for policy drafting and negotiation, exploring
how communication can support reforms,
and integrity in the implementation of reforms.

28 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 29
EVENTS
Managing Education System Reforms
Public Financial
Management
BUDGET PREPARATION
AND EXECUTION
This year’s program was
again predominantly carried
out online. This pushed us to
explore and introduce new
approaches and tools.
Assessing the Fiscal Risks of State-Owned
Enterprises
Performance-Based Budgeting: High
Expectations and Modest Achievements
Towards Integrating Structural Reforms and
Fiscal Framework in Bosnia and Herzegovina
Costing and Budget Integration of Structural
Reforms (Moldova-specific webinar)
Integration of Structural Reforms into the
National Budget (Moldova-specific webinar)
Management of Public Investments (Moldovaspecific
webinar)
Consultative Meeting on ERP Guidance Note
Knowledge Sharing on the Costing of
Structural Reforms*
Monitoring Implementation of Structural
Reforms
In 2021, we have enriched the Budget Preparation and Execution (BPE) learning program with a rewarding
experience in the delivery of hybrid events. Using modern equipment and facilitation tools,
we simultaneously gathered audiences in the physical and online spaces to jointly exchange knowledge
on monitoring the implementation of structural reforms. Nevertheless, online courses and webinars were
still predominant in the BPE program this year.
We have continued close collaboration with the IMF Fiscal Affairs Department (FAD) through the delivery of a
joint regional online course on Assessing the Fiscal Risks of State-Owned Enterprises, that complemented their
technical assistance activities in SEE.
We also continued with our multiannual program structured to assess fiscal implications of structural reforms
in the ERPs. It aims to strengthen the capacities of line ministries. We achieved this through the delivery of 7
learning activities on Knowledge Sharing on the Costing of Structural Reforms. They were customized to country-specific
learning needs and capacities of officials from line and ministries of finance in Western Balkans
and Turkey.
One of the biggest novelties in the 2021 BPE program was the introduction of a targeted learning opportunity
for officials from the ministries of finance of Bosnia and Herzegovina. It consisted of two phases, which included
numerous online meetings organized throughout the year. The focus was on joint group work on strengthening
team spirit and coordination, building trust, designing internal guidelines on integration of structural reforms
and fiscal frameworks, and their practical implementation in preparation of the ERP for 2022–2024.
* Seven events organized for Albania, Bosnia and
Herzegovina, Kosovo, Montenegro, North Macedonia,
Serbia and Turkey.
KNOWLEDGE PRODUCT
• Comparative Analysis of the ERP 2021–2023
Assessment Reports
PROGRAM DONORS
• EU
• IMF
• Ministry of Finance, Slovakia
• Ministry of Finance, Slovenia
OTHER PROGRAM PARTNERS
• EC (DG EMPL, DG ECFIN)
• Institute of Economic Research, Slovenia
• OECD
• UNICEF
Tara Vasiljević
Program Officer and thematic area lead
CEF

30 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 31
ACCOUNTING
We successfully concluded the two-year
certification training for the third generation
of public sector accountants in North
Macedonia (PACT). Due to the Covid-19 circumstances,
we transformed and delivered all modules in an online
format for the first time. We prepared the project
and secured financial support to continue the training
on the diploma level in the following two years.
The program promotes regional cooperation in
overcoming common challenges in the PFM reform
through accounting. It supports the development
and recognition of the accounting profession through
certification trainings, and strengthens inter-institutional
cooperation across countries.
One of the highlights of the year was the first joint
international conference organized as a hybrid event
in North Macedonia, in partnership between the CEF
and Chartered Institute of Public Finance and Accountancy
(CIPFA). It brought together almost 200
participants from 30 countries and 90 institutions to
discuss trends, lessons learned, challenges and techniques
on how to overcome them in four relevant areas:
asset management, anti-corruption, leadership,
and the training needs of accountants and auditors.
We continued our support to public officials by
raising awareness, deepening knowledge and exchanging
international experience on the topic of
public sector asset management. To ensure further
support, we developed a new project and secured
funding for its implementation through a three-year
project “Efficient Public Sector Asset Management”
(EPSAM), starting on January 1, 2022.
Jasmina Popovič
Program Officer and thematic area lead
CEF
EVENTS
Building a Public Sector Asset Register: Challenges and
Recommendations
PACT North Macedonia: Management Accounting
PACT North Macedonia: Training of Trainers for Management
Accounting Module
PACT North Macedonia: National Module
Implementation of FMIS
The Role of Accounting and Data in Costing of Structural Reforms
Accounting and Reporting of IPA Projects
PACT North Macedonia: Graduation Ceremony
Supporting Accounting and Auditing Developments and Synergies
International Public Sector Accounting Standards – IPSAS
KNOWLEDGE PRODUCTS
• Public Sector Asset Management in the Republic of North Macedonia
• Application of Selected Public Sector Accounting Standards in North
Macedonia – Overview of International Practices
• Public Accountants Certification Training in North Macedonia
• The Role of Accounting in Costing of Structural Reforms - Case Study
on the Slovak Republic
PROGRAM DONORS
• Ministry of Finance, Slovenia
• Ministry of Foreign Affairs, Slovenia
OTHER PROGRAM PARTNERS
• CIPFA
We are very proud
to have expanded
our partnership
with the CEF in recent years.
The conference highlighted
the strong track record, personal
connections and regional
expertise that our CEF
colleagues have in SEE. We’re
confident that working with
CEF will make CIPFA’s training
programmes that much more
impactful, and deliver real benefits
in the region. The joint
CEF-CIPFA conference also
highlighted the shared challenges
and issues that we, as
public finance professionals,
experience in our field of work
– regardless of location. More
than 25 accounting and audit
experts that participated in the
conference programme underlined
just how integrated many
of the topics, such as asset
management and anti-corruption,
are across the sector.
Khalid Hamid
International Director
CIPFA

32 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 33
AUDITING
In 2021, we introduced new
topics in the audit program:
applying insights of behavioral
science in auditing and data
visualization in audit reporting.
Both webinars drew a large
number of applicants and were
well received by our colleagues
in the region.
EVENTS
Applying Insights from Behavioral
Science to Internal Audit
We are also constantly expanding our collaboration
with regional experts, like Ms. Aleksandra Vugrin
from the Court of Audit, Slovenia, who shared
her expertise and insights at the webinar Data Visualization
in Audit Reporting. Her presentation provided participants
with differing viewpoints on data visualization techniques
and tools, as well as practical examples from Slovenia.
The event Integrity in the Implementation of Structural Reforms
was an innovation in the auditing program. We simulated
an EU-awarded interactive game exercise that encouraged
and motivated participants to enhance their ability to
recognize the red flags of fraud. The concept of the game
exercise ensured that everyone gained a deeper understanding
of open source, intelligence and research database
tools, data analytics and, most importantly, lifelike exercises
and cases.
Another particularly notable event was the hybrid workshop
Audit Sampling. It was a combination of intensive theory,
numerous practical cases, and interaction between lecturers
and participants, both in the classroom and online.
Participants were excited to jointly contribute to this new
format, co-creating it with the experts and us.
Arjonela Dedja
Program Facilitator and thematic area lead
CEF
Data Visualization in Audit
Reporting
Risk-Based Annual Planning
Performance-Based Auditing
Integrity in the Implementation
of Structural Reforms
Auditing Governance
Audit Sampling
PROGRAM DONORS
• EU
• Ministry of Finance, the Netherlands
• Ministry of Finance, Slovenia
OTHER PROGRAM PARTNERS
• European Court of Auditors
We have strong ties with
the countries that share our
constituencies at the IMF,
World Bank and European Bank for Reconstruction
and Development (EBRD).
That’s why our ministry established the
Constituency Program. This program enables
us to support PFM reform in the
countries, in particular in areas where
our experts can provide genuine added
value. In our program with the CEF, we
focus on auditing and taxation. We make
sure that our work with the CEF is aligned
with our bilateral efforts in the countries.
What I like most about the Constituency
Program of the Dutch Ministry of Finance
is the peer-to-peer angle. Our colleagues
are more than willing to work with their
constituency counterparts. Once I talked
with an IMF resident representative in
one of our countries, who thought that
colleagues working together could add
a lot to the work of international institutions.
I think he is right.
Angelique van Haasteren
Technical Assistance Coordinator
Ministry of Finance, the Netherlands

34 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 35
In 2021, all learning activities were delivered in a
virtual environment. Despite being connected with
the participants and experts online only, we introduced
a promising new initiative: we successfully launched a
series of online meetings for developing a knowledge-sharing
culture in tax administrations with CEF Tax Coordinators.
Knowledge sharing is an important aspect of knowledge management
that enhances organizational learning and employee
performance and improves cooperation between organizations
and individuals. Therefore, we decided to offer representatives
of tax administrations the opportunity to recognize how such
sources of value creation can be built in an institution.
We took a step-by-step approach and identified the most
crucial topics for bridging the gap in achieving institutional
knowledge sharing. Then we addressed each topic separately.
We put our participants in the center of the learning
process. They co-created the agenda and we addressed their
challenges during the meetings. Experts co-facilitated learning
process and helped participants develop their ideas.
Based on participant feedback, this methodology makes
them think broader and opens new horizons. Due to its complex
nature and the time needed for change, the initiative will
continue also in 2022.
Tax Policy and
Administration
Our tax policy and
administration learning
program continues to
support public officials in
strengthening capacities
for increasing the
efficiency and fairness of
revenue administrations.
Corresponding to the Covid-19
pandemic, technology, and
transparency developments
that drive the modern age of
tax, the program focuses also
on digital security, e-services,
communication, and
performance management.
EVENTS
Tax Coordinators’ Meeting –
Developing Knowledge Sharing
Culture (two events)
Managing Compliance Risks after
the Covid-19 Pandemic
Delivering Quality Services
Remotely
Measuring Tax Administrations’
Functional Performance
Strengthening Tax Auditors’
Capability – Basic Skills
Implementation of a High-Wealth
Individual Tax Compliance Program
Improving Communication Skills in
Tax Auditing Process
Strategy-Setting for Domestic
Revenue Mobilization (DRM)
PROGRAM DONORS
• EU
• IMF
• Ministry of Finance,
the Netherlands
• Ministry of Finance, Slovenia
• SECO
OTHER PROGRAM PARTNERS
• Ministry of Finance and
Economy, Albania
• National Bank of Moldova
• OECD
• Overseas Development Institute
(ODI)
• Tax Administration of Kosovo
Maja Tomšič Pavlič
Program Specialist and thematic area lead
CEF

36 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 37
Central Banking
In our program for central banks and
financial supervisory authorities,
we especially focused on prudential
regulation and supervision connected
to actual and future challenges.
EVENTS
Cyber Security Risk Supervision
CEF Coordinators Meeting on Learning at
Central Banks
Innovation in Payments
Governance and Supervision in Banks and
Financial Market Institutions
Unwinding Covid-19 Policy Interventions
for Banking Systems
Interest Rate Benchmark Reforms
Bank Business Model Analysis
Financial Stability and Stress Testing
PROGRAM DONORS
• Banka Slovenije
• Ministry of Finance, Slovenia
OTHER PROGRAM PARTNERS
• Central Bank of the Republic of Turkey
• De Nederlandsche Bank
• European Central Bank
• IMF
• Magyar Nemzeti Bank
• National Bank of Belgium
• National Bank of Moldova
• National Bank of the Republic of North Macedonia
• The Block
At the events organized in 2021, we
discussed the topics of climate and
environmental risks as well as other
trends, like digitalization, low-interest-rate environment
and their implications on bank business models.
At the event on financial stability and stress
testing, we provided insights into the impacts of the
Covid-19 pandemic. For prudential supervisors and
financial market infrastructure experts, we organized
an extensive online course on cyber security.
We also held a webinar to examine and share
countries’ prospects of unwinding policy measures
taken due to Covid-19. Another webinar was dedicated
to the reforms and updates on benchmark
interest rates. We also reviewed the fast-changing
infrastructure of financial markets by discussing
payment innovations, fintech, and crypto assets as
well as the current projects of central banks on the
introduction of digital currencies.
Matija Čarman
Program Specialist and thematic area lead
CEF

38 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 39
In 2021, we designed and implemented a series of
learning activities in the area of assessment of countries’
economic impact of structural reforms. It was
targeted at line ministries and ministries of finance, with participants
coming also from other institutions in the EU candidate
countries and potential candidates. We started with a regional
workshop, focusing more on real-life approach examples that
can be taken in light of the various type of reforms, policy areas
and data availability. For this, we implemented country-specific
workshops where participants were encouraged to make qualitative
and quantitative impact estimations of structural reforms
introduced in their countries’ ERPs, supported by a discussion
with an expert.
A very important aspect of DAP is also integrating social learning
principles into our activities. At the event Macroeconomic
Modeling For Open Economies 1, we complemented the training
focused on building the technical skills, required to develop a dynamic
stochastic general equilibrium (DSGE) model of an economy,
with a knowledge-sharing consultations session. Participants
presented their ongoing work in DSGE modeling and consulted
with the expert and other participants on a concrete challenge.
This way, we acknowledge participants as experts and provide
them with the platform to learn from each other’s experiences.”
Data and
Analysis
for Designing
Policies
One of the objectives of the
Data and Analysis for Designing
Policies (DAP) learning program
is to promote the importance
of an evidence-informed
approach to policymaking.
It is a cross-cutting thematic
area, addressing finance
officials across all public
institutions dealing with the
compilation and dissemination
of macroeconomic statistics,
or carrying out macro/
microeconomic analysis and
forecasting.
EVENTS
Macroeconomic Modeling for
Open Economies 1
Structural Reforms and
Assessment of Their Economic
Impact
Beyond Fiscal Implications of
Structural Reforms*
Translation of Financial
Statements into Statistics
Economic Analysis and
Forecasting with Micro-Data
* Six events organized for Albania, Bosnia
and Herzegovina, Kosovo, Montenegro and
Serbia, North Macedonia and Turkey
PROGRAM DONORS
• Banka Slovenije
• EU
• Ministry of Finance, Slovenia
OTHER PROGRAM
PARTNERS
• Banque de France
• European Central Bank
• Eurostat
• IMF
• Institute of Macroeconomic
Analysis and Development,
Slovenia
• National Bank of Moldova
Nina Agić
Senior Program Officer and thematic area lead
CEF

40 CEF BUSINESS REPORT 2021
LEARNING PROGRAM 41
CEF – 20 YEARS OF CAPACITY DEVELOPMENT IN SEE
In 20 years, the CEF, together with our extended
community of members, learners, Coordinators,
experts, donors, partners, and other friends
accomplished quite a journey.
2938 PARTICIPANTS
98 EVENTS
89 PARTICIPANTS
3
Today, the CEF is a learning organization and a regional knowledge hub.
We deliver value to our constituency through practices that have evolved
over the 20 years.
Our 33 staff members are experts in learning that collaborate with over
200 experts, half of them coming from SEE. These leading professionals
in their fields are crucial in providing lectures and practitioners’ expertise
to our learning and knowledge sharing program.
In 2001, the CEF had three staff members and 46 experts working with
us. Initially, we were an organizer of training courses for six constituency
members from SEE. By 2016 the CEF’s constituency grew already to 12
countries in the region.
To meet the changing needs of our learners, we have recognized the value
of a stimulating learning environment, be it physical or online. Having
our own platform developed for online learning became crucial in 2020.
The Covid-19 pandemic required us to shift all our program delivery to
an online format.
We have always worked on these basic principles: adapt to the ever-changing
environment and its challenges, and nurture networking and
ownership through partnerships and participation of the entire CEF community.
All of this will be even more observed in the future, as demonstrated
in our Strategic Direction 2022–2026.
EVENTS
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

42 CEF BUSINESS REPORT 2021
GOVERNANCE 43
GOVERNANCE
Our governance structure consists of the
Governing Board, the Advisory Board,
the Coordinators, and the Secretariat
with distinct and complementary goals
and responsibilities.
Governing Board
Ministers, Governors and
heads of other relevant
institutions, or their nominated
representatives and up to
three representatives of the
Advisory Board
Decision Making
Body
Advisory Board
Advisory group of experts
from donor and partner
institutions
Advisory
Consultative
Bodies
Coordinators
Representatives of
constituency institutions
responsible for human
capacity development

44 CEF BUSINESS REPORT 2021
GOVERNANCE 45
Governing Board
The Governing Board is the CEF’s
principal decision-making and governing
body. It is entrusted with the guidance of
our strategic direction and our activities,
as well as reviewing progress, annual
reports and financial statements.
MEMBERS OF THE CEF GOVERNING BOARD (APRIL 30, 2022)
Delina Ibrahimaj, Minister
Ministry of Finance and Economy, Albania
Gent Sejko, Governor
Bank of Albania
Assen Vassilev, Minister
Ministry of Finance, Bulgaria
Fatmir Besimi, Minister
Ministry of Finance, North Macedonia
Anita Angelovska Bezhoska, Governor National Bank of the Republic of North Macedonia
Dumitru Budianschi
Ministry of Finance, Moldova
Octavian Armaşu, Governor
National Bank of Moldova
It is independent and autonomous in its decisions and
brings together ministers of finance and/or governors of
central banks from the CEF member countries: Albania,
Bulgaria, Moldova, Montenegro, North Macedonia,
Romania, and Slovenia. Additionally, it includes up to
three representatives of the Advisory Board.
Following the meeting on June 8, 2021, the Chairing of
the CEF Governing Board was passed to the Slovenian
Minister of Finance, Mr. Andrej Šircelj. As in 2020,
the meeting was virtual due to the ongoing Covid-19
pandemic. Two other meetings were held in 2021.
Aleksandar Damjanović, Minister
Radoje Žugić, Governor
Dan Vîlceanu, Minister
Mugur Isărescu, Governor
Andrej Šircelj, Minister
Boštjan Vasle, Governor
Mateja Vraničar Erman, Senior Adviser
Birger Nerré
Martin Polónyi, Director General
Ministry of Finance and Social Welfare, Montenegro
Central Bank of Montenegro
Ministry of Finance, Romania
National Bank of Romania
Ministry of Finance, Slovenia
Banka Slovenije
Ministry of Foreign Affairs, Slovenia
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Ministry of Finance, Slovakia
CEF’s governance structure is unique
and reflects how we approach our work
and who we involve in delivering our
mandate. Ministers of finance, governors of central
bank, their representatives involved in human resources
and partners may be ever changing, nevertheless,
they - together with the Secretariat - jointly
assure transparency, accountability, inclusiveness
and responsiveness, which are the cornerstones of
CEF’s good governance.
I am particularly proud of our collaborative and iterative
approach to developing our new strategic direction
with interested members of our governing and
advisory boards, coordinators and partners throughout
last years. They brought valuable perspectives
and input that will guide the CEF in the next years.
Irena Lukač
Chief Partnership Officer
CEF

46 CEF BUSINESS REPORT 2021
GOVERNANCE 47
STRATEGIC DIRECTION 2022–2026
The CEF Strategic Direction 2022–2026 was confirmed
by the Governing Board on June 8, 2021.
The initial planning phase to elaborate our strategic
objectives started already in 2020. We discussed
the background and draft outline in bilateral
consultations with the Governing Board, the
Advisory Board and the CEF Coordinators. They
gave us very valuable input and a solid foundation
for mapping our strategic priorities and ways
to assist our member institutions in reaching their
goals.
Our vision is to inspire public officials, both individuals
and teams, to shape institutional governance
that drives successful economies and fair societies.
This vision puts forward inspiration – for learning,
governing, and advancement. It also maintains
our work in serving as leaders in learning
for public officials. Both of these two aspirations
rest on trust in people and their ability to shape
governance. Our target audience remains central
banks, ministries of finance, tax administrations,
line ministries, and also other public institutions.
With this strategic document, we address:
• the narrative for the region in 2026
• vision and mission
• value-added: know-how on becoming and being
a learning organization
• focus areas of impact
• partnerships
• internal environment
• resources and risks
• monitoring, evaluation and learning
• the results framework and theory of change
We also consulted with several institutions that
contributed to the CEF’s understanding of priorities
for the next years: the Energy Community,
the European Centre for Development Policy Management
(ECDPM), the European Commission,
the IMF, the ODI, OECD, the Regional Cooperation
Council, Regional School of Public Administration
(ReSPA), the Joint Vienna Institute, and the Transport
Community.

48 CEF BUSINESS REPORT 2021
GOVERNANCE 49
Advisory Board
OUR PARTNERS
ODI really values the partnership
with CEF and there is a lot
of potential to deepen our cooperation
in the future. It offers an opportunity
to bridge international and national
debates on economic and fiscal management
in some new and exciting ways.
ODI’s research can offer a fresh perspective
on what constitutes “best practice” in
different countries. For example, we have
particular expertise on the capabilities
that support an effective finance ministry,
a strong budget office or ministry finance
function, and a good tax policy making process.
These may be useful for CEF’s members
as they try to make sense of international
experiences and implement reforms.
On the other hand, I believe CEF and its
partners have lessons that many other in
Africa, Asia, and other regions would like to
hear about.
Sierd Hadley
Research Fellow
ODI
The CEF Secretariat has strong
support from an advisory group of
experts, consisting of our donors and
partners. They provide knowledge,
critical thinking, analysis, and their
understanding of the relevant
topics in the region and broader.
By advising on the relevance of the
CEF program for our beneficiary
institutions, they increase the impact
of the CEF’s learning and knowledgesharing
program.
The Advisory Board has currently three representatives
in the Governing Board from the
GIZ, the Ministry of Finance, Slovakia, and the
Ministry of Foreign Affairs, Slovenia. The chair
of the Advisory Board is Ms. Mateja Vraničar
Erman from the Slovenian Ministry of Foreign
Affairs*. The annual meeting of the Advisory
Board was organized as a hybrid event on October
6, 2021. At the 2021 meeting, we welcomed
a new member to the board, Mr. Sierd
Hadley, Research Fellow at the ODI.
*Former Chair, Ms. Andreja Jerina, retired in early 2022.
PARTICIPATING INSTITUTIONS
AT THE 2021 ADVISORY BOARD MEETING
• GIZ
• Ministry of Finance, the Netherlands
• Ministry of Finance, Slovakia
• Ministry of Foreign Affairs, Slovenia
• National Bank of Belgium
In the past 20 years, our partnerships significantly
contributed to achieving more than we could on
our own. We partner with multilateral and bilateral
organizations, knowledge institutions, and peer organizations.
They are invaluable in the implementation
of our learning and knowledge-sharing program by
providing resources and expertise. Together we foster
collaboration, synergize on each other’s strengths
and as such, set a good example for the region. Our
exchange of expertise and widening the networks
also mutually amplify our efforts for improving structural
reforms in the region.
We keep regular contact with our partners. In 2021,
we had to again meet online for our annual after-
New-Year gathering, organized as a series of virtual
meetings with selected institutions. This year, CEF
also signed a Memorandum of Understanding with
the Regional Cooperation Council (RCC).
INTERNATIONAL
MONETARY FUND
Since signing a Memorandum of Understanding
in 2017, the IMF and the CEF have further
strengthened the partnership. We complement
each other’s work by exchanging our knowledge
of the regional needs and addressing them by
joining our institutional expertise and experience.
We combine our learning and knowledge-sharing
program with the IMF’s country-specific
capacity development programs
and projects, thus supporting institutions and
countries in developing mechanisms for growth.
Many of the CEF courses are co-delivered with
the IMF regional advisors for SEE or colleagues
from the IMF headquarters. In 2021 CEF hosted
two IMF Fiscal Affairs Department (FAD) Regional
Advisors for PFM and revenue administration.
Their work is presented in the Appendix.
The IMF’s Fiscal Affairs Department (FAD)
and the CEF have continued to collaborate
in addressing the Southeast Europe
(SEE) region’s capacity development (CD) challenges.
The overarching goal is to help the SEE countries to
strengthen their fiscal institutions, aligned with international
good practices. This is critical for these countries
to achieve macroeconomic stability and sustainable
growth, mobilize revenue to finance expenditure
policies, and implement essential structural reforms
across government areas. In 2021, we worked together
to provide responsive and agile CD to address the
specific challenges arising from the COVID-19 pandemic
and to prepare for the recovery phase.
The FAD-CEF cooperation leverages longstanding
relations between FAD and the respective SEE countries
in modernizing their public financial management
(PFM) and revenue administration (RA) institutions
and CEF’s work with the countries that focuses
on regional learning. We therefore look forward to the
continued collaboration including by further increasing
synergies across the region.
Vitor Gaspar
Director
Fiscal Affairs Department, IMF

50 CEF BUSINESS REPORT 2021
GOVERNANCE 51
PARTNERS’ IN KIND CONTRIBUTIONS
TO OUR PROGRAM
Partners’ contributions in cash are recorded and reported in the
CEF’s financial statements. The in-kind contributions that are not
recorded and reported in the financial statements are shown in the
table below. Several partner institutions and donors sponsor lecturers
(travel expenses and lecturing fees) for their engagement in
CEF learning activities.
For this report, a lecturing day is estimated at EUR 1,000 (including
the preparation time). Travel expenses are estimated to be EUR
1,500 based on historical data, whereby sending institutions cover
travel expenses in 50% of cases. A weighted travel lump sum of
EUR 750 is hence applied to all individual expert engagements.
Not listed in the table below is an additional in-kind contribution
of the Ministry of Finance of North Macedonia estimated at EUR
20,736 (total for 2020 and 2021 together), i.e. for the additional
time allocated by a local coordinator and provision of local learning
and meeting space to implement the PACT project.
Institution
TOTAL
days
TOTAL COSTS
EUR
EU INSTITUTIONS AND INTERNATIONAL ORGANIZATIONS 70.50 70,500
Development Bank of Latin America 2.00 2,000
European Central Bank 3.50 3,500
European Commission and Delegations of the EU in SEE 14.75 14,750
European Court of Auditors 2.75 2,750
Eurostat 2.50 2,500
IMF 32.00 32,000
Joint Vienna Institute 2.00 2,000
OECD 8.00 8,000
Regional Anti-Corruption Initiative 1.00 1,000
The World Bank Group 1.25 1,250
UNICEF 0.75 750
AFFILIATED AND EXTERNAL EXPERTS 8.75 8,750
Institution
TOTAL
days
TOTAL COSTS
EUR
CEF CONSTITUENCY INSTITUTIONS 29.75 29,750
Ministry of Finance and Economy, Albania 2.25 2,250
Directorate for Economic Planning, Bosnia and Herzegovina 0.75 750
Ministry of Physical Planning, Construction and State Assets, Croatia 2.75 2,750
State Audit Office, Croatia 1.00 1,000
Tax Administration of Kosovo (and other government institutions) 0.75 750
National Bank of Moldova 3.75 3,750
Ministry of Finance and Social Welfare, Montenegro 0.75 750
Faculty of Economics Skopje, North Macedonia 0.75 750
Ministry of Finance, North Macedonia 1.25 1,250
State Audit Office, North Macedonia 1.50 1,500
Ministry of Finance, Serbia (and other government institutions) 0.75 750
Banka Slovenije 0.75 750
Financial Administration of the Republic of Slovenia 0.50 500
Institute of Macroeconomic Analysis and Development, Slovenia 1.00 1,000
Ministry of Foreign Affairs, Slovenia 2.00 2,000
Ministry of Public Administration, Slovenia 2.00 2,000
Central Bank of Turkey 3.25 3,250
Presidential Strategy and Budget Office, Turkey 2.00 2,000
Others* 2.00 2,000
OTHER COUNTRIES’ INSTITUTIONS 46.50 46,500
AFROSAI-E, South Africa 2.00 2,000
Banque de France 9.50 9,500
CIPFA, United Kingdom 5.00 5,000
De Nederlandsche Bank 0.50 500
Magyar Nemzeti Bank 0.50 500
Ministry of Finance, Netherlands 14.75 14,750
Ministry of Finance, Saudi Arabia 1.00 1,000
Ministry of Finance, Slovakia 0.50 500
National Bank of Belgium 2.00 2,000
ODI, United Kingdom 2.50 2,500
The Block, United States of America 1.00 1,000
The Vienna Institute for international Economic Studies, Austria 2.00 2,000
Università Cattolica del Sacro Cuore, Italy 4.50 4,500
Others** 0.75 750
TOTAL 155.5 155,500
* National Bank of North Macedonia; National Bank of Romania; Court of Audit, Slovenia; Eko Sklad, Slovenia; Faculty of Social Sciences, Slovenia;
Institute for Economic Research, Slovenia; Office of the Government of Slovenia for Digital Transformation; Statistical Office, Slovenia
** Foresight Centre, Estonia; Hungarian State Treasury; Ministry of Interior and Administration, Poland

52 CEF BUSINESS REPORT 2021
GOVERNANCE 53
Coordinators
Coordinators are appointed
representatives of our constituency’s
ministries of finance, central
banks and tax administrations,
responsible for capacity development
and strategic human resources
management in their institutions.
They are the cornerstone of our close collaboration
with the region and a crucial link to our deeper
understanding of the learning needs of individuals,
teams and institutions within our constituency.
Together with the Governing Board, the Coordinators
help us identify the capacity development
priorities. This way we can develop the learning
program relevant to our constituency as well as to
the processes and developments within a broader
geographical context.
The CEF and its Coordinators meet every two years
to exchange ideas and good practices in learning,
and to discuss how they could be part of the CEF
learning and knowledge sharing program.
In 2021, as part of the CEF 20th anniversary celebration, we met
with the Coordinators to celebrate our journey so far and share ideas
and the vision for the future. At the meeting, once more held online,
we highlighted our joint achievements and key milestones. We discussed
the plans and Coordinator’s roles in planned activities, especially
in light of the new Strategic Direction 2022–2026. We also
highlighted the importance of institutional knowledge management
and strategic human resource function.
By introducing the CEF model of a learning organization to public
institutions, we are convinced that we can jointly empower public
officials as confident leaders to support and enforce the needed reforms
in their teams and institutions.
CEF COORDINATORS (APRIL 30, 2022)
Vasilika Vjero
Ministry of Finance and Economy, Albania
Gramoz Kolasi
Bank of Albania
Olisa Osmani
General Taxation Directorate, Albania
Sehija Mujkanović
Ministry of Finance and Treasury, Bosnia and Herzegovina
Almir Salihović
Central Bank of Bosnia and Herzegovina
Denisa Seho
Indirect Taxation Authority of Bosnia and Herzegovina
Amela Kazazić
Tax Administration of the Federation of Bosnia and Herzegovina
Sandra Kovačević
Tax Administration of Republic of Srpska, Bosnia and Herzegovina
Galina Tzekova
Ministry of Finance, Bulgaria
Stoyan Bozhkov
Bulgarian National Bank
Boryana Yankova-Sharkova National Revenue Agency, Bulgaria
Andrea Kocelj
Ministry of Finance, Croatia
Marija Lončar
Ministry of Finance, Tax Administration, Croatia
Orhan Devaja
Ministry of Finance, Labor and Transfers, Kosovo
Syzana Mahmutaj
Central Bank of the Republic of Kosovo
Floransa Sahiti
Tax Administration of Kosovo
Tatiana Onici
Ministry of Finance, Moldova
Natalia Zabolotnii
National Bank of Moldova
Silvia Caitaz
State Tax Service, Moldova
Šućo Orahovac
Ministry of Finance and Social Welfare, Montenegro
Ana Šćepanović
Central Bank of Montenegro
Lidija Šećković
Revenue Administration, Montenegro
Magdalena Simonovska Ministry of Finance, North Macedonia
Aleksandra Kacarski National Bank of the Republic of North Macedonia
Aleksandra Kacarski Public Revenue Office, North Macedonia
Emanuel-Alex Constantin Ministry of Public Finance, Romania
Mugur Tolici
National Bank of Romania
Costin Naghi
National Agency for Fiscal Administration, Romania
Bojana Drobnjak
National Bank of Serbia
Snezana Ilić
Tax Administration, Serbia
Sanja Pregl
Banka Slovenije
Nataša Marušič Kuhar Financial Administration of the Republic of Slovenia
Taşkın Babaoğlan
Presidency of The Republic of Turkey, Presidency of Strategy and Budget
Arzu Hancı Karademirci Central Bank of the Republic of Turkey

54 CEF BUSINESS REPORT 2021
GOVERNANCE 55
Secretariat
The CEF Secretariat, comprised
of the director, staff and experts,
ensures that the responsibilities
are met and our day-to-day
activities are carried out.
CEF CORE VALUES
In our work we follow core values that we have defined together. We are developing coaching
and mentoring culture by seeing the value and taking responsibility for developing ourselves
and supporting capacity development of others.
The 33 CEF team members come from
Albania, Georgia, Germany, North Macedonia,
Serbia, Slovenia and Turkey. Such an
international and diverse team brings invaluable
experiences to our programming
and work. This also enables us to communicate
with most of the region in their native
languages. In addition, we have nine affiliated
experts and two IMF regional capacity
development advisors and their interpreter,
the latter three working at the CEF.
TRUST
We trust ourselves
and each other
in our goal to
deliver highquality
programs,
support regional
cooperation, and
work effectively with
our partners.
TEAM SPIRIT
We respect, accept
and support each
other in combining
our diverse roles
and capacities.
FOCUS ON RESULTS
We set clear and
measurable goals
with specific
action plans and
efficient use of
resources, while
also considering
staff interests and
capabilities.
OPPORTUNITY
TO GROW
We are committed
to support an
environment
where we grow as
individuals and
team(s).
ACCOUNTABILITY
By aligning
our personal
integrity with clear
organizational
expectations, we
take responsibility
for what we do,
how we do it and
how this affects the
world around us.
As this report shows, we design
and deliver increasingly
complex learning and knowledge
sharing activities that are impactful
not only at the individual but also teams
and institutional level. Our capacity in this
regard has been growing with our readiness
to embrace each other’s unique
strengths and learn from each other, and
from closer engaging a growing number
of experts and knowledge partners in
co-creating our program. Jointly, we assure
better quality, monitor and evaluate
our work, and feed lessons learned into
our future program.
Robert Bauchmüller,
Chief Program Officer
CEF

56 CEF BUSINESS REPORT 2021
GOVERNANCE 57
SUSTAINABILITY, CORPORATE RESPONSIBILITY AND WELL-BEING
At the CEF, we aim to balance environmental, social and governance aspects – for our institution,
our partners, donors and beneficiaries, and society at large.
We understand that corporate social responsibility directly impacts trust, identification, well-being,
and green behavior. Consequently, organizational trust and identification directly influence
employee well-being and behavior. With this in mind, we remain highly committed to pursuing
environmental and social sustainability, as well as enhancing the well-being of our team. While
we try to set a good example in the environment and the social landscapes where we operate, we
also learn from the best practices of others.
Despite the Covid-19 pandemic still having a great effect on our work, in 2021 we organized
many activities to improve the well-being of others and our team members. Here are some of the
highlights.
Broader impact initiatives:
• Blood donation
• Supporting Pink October movement
• December holiday activities: donations and presents to children in need, and writing greeting
cards to the residents of the elderly and retirement homes
• Furniture donation to Tabor Primary School in Logatec and to Ljubljana Pride Association
Internal initiatives:
• CEF commuter challenge (cycling to the office)
• Taking part in the Ljubljana Marathon
• Easter day cookie baking for the team
• Hike to Polhograjska Grmada
• Delivering appreciation packages to staff members infected by Covid-19
We also put great emphasis on evolving our work culture in a way that enables and motivates the
team members to create, systemize, transfer, use, and leverage knowledge. To achieve this, we
develop and nurture standards, values and skills that build trust, confidence and engagement.
We regularly attend external trainings, conferences and other learning events. Every two weeks,
we exchange experiences internally or invite guests from other organizations to expand our horizons
and challenge our perspectives. In 2021, we organized 25 such events: 10 external knowledge-sharing
sessions, 12 internal knowledge-sharing sessions, and 3 team retreats.
We also advocate and endorse healthy work-life balance by offering several health-promoting
opportunities. Due to the health measures taken because of Covid-19 in 2021, many activities
were put on hold or carried out in a limited capacity. We look forward to fully resuming them once
the circumstances allow.
In addition, we stimulate positive organizational culture by regularly monitoring the quality of the
relationship between the employees and their organization. We take part in external and internal
surveys measuring the satisfaction of team members on different levels. In 2021, we also upgraded
our work environment to support our innovative learning approaches, meet the growing need
for hybrid events, and accommodate our agile work style.
REALIZATION OF SUSTAINABLE DEVELOPMENT GOALS
Our activities support the realization of Sustainable Development Goals (SDGs) that are part
of the Agenda 2030 for Sustainable Development. The CEF activities support particularly the
following two goals: SDG 16 and SDG 17.
We are supporting all three dimensions and most of the thirteen priority areas laid out by the
SEE 2030 Strategy, a joint call for action by all 13 SEE economies agreed in Antalya in June
2021. By contributing to strengthened economic and financial governance of our constituency,
taking a people-centered approach to adult learning, and developing and delivering
our program in close cooperation with many partners, we support sustainable development
in line with the dimensions of prosperity, people, and peace and partnerships respectively.
SDG 16: PROMOTE PEACE, JUSTICE AND STRONG INSTITUTIONS
All CEF learning and knowledge-sharing activities are intended to improve the capacities of public
officials to facilitate their work performance. The final goal is to support the officials, their
public financial management, tax policy and administration, and central banking reform efforts
and, as a consequence, build effective, accountable and inclusive institutions at all levels.
SDG 17: REVITALIZE THE GLOBAL PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT
On the way towards the realization of the SDGs, the CEF is partnering with multilateral and
bilateral organizations, knowledge institutions, peer organizations, finance ministries, line
ministries, central banks and other institutions from our constituency. The partners share
our commitment to the region’s reform efforts. This strong and reliable partner network creates
valuable synergies in implementing international development cooperation and thus
accelerates progress in the realization of the SDGs.

58 CEF BUSINESS REPORT 2021
FINANCIAL STATEMENTS 59
FINANCIAL
REPORT

60 CEF BUSINESS REPORT 2021
FINANCIAL STATEMENTS 61
Responsibility
for the financial
statements
The Management is responsible for ensuring that
the financial statements are prepared for each financial
period in accordance with the International
Financial Reporting Standards (IFRS), which give a
true and fair view of the state of affairs and results
of the CEF.
After making enquiries, the Management has a reasonable
expectation that the CEF has adequate resources
to continue in operational existence for the
foreseeable future. For this reason, the Management
continues to adopt the going concern basis
in preparing the consolidated financial statements.
In preparing those financial statements, the responsibilities
of Management include ensuring that:
• suitable accounting policies are selected and
then applied consistently
• judgments and estimates are reasonable and
prudent
• applicable accounting standards are followed,
subject to any material departures disclosed and
explained in the consolidated financial statements
and
• the financial statements are prepared on the going
concern basis.
Management is responsible for keeping proper accounting
records, which disclose with reasonable
accuracy at any time, the financial position of the
CEF and its financial performance. The Management
is also responsible for safeguarding the assets
of the CEF, and hence, for taking reasonable
steps for the prevention and detection of fraud and
other irregularities.
The conclusion of a year is always an opportunity to look back and
reflect.
We are very pleased with our performance in yet another challenging year. Despite
the ongoing uncertainties caused by Covid-19, we successfully secured the
financial stability of our essential operations and maintained reserves. This was
largely possible due to the good relationships we have built with our partners in
the past 20 years. We are grateful for the trust they have in us and our competencies
to deliver the program even in less favorable circumstances, as well as in our
prudent use of funds.
Embracing the new realities, we equipped our classrooms to offer a hybrid experience
for our participants. The technology enables online and face-to-face participants
and experts to experience both environments and interact with each other.
It is an investment that will benefit many future participants unable to participate
in our events in person due to their institutions’ budgets and other limitations.
CEF’s dynamic pace of work also required the adaptation of our office space. We
reduced the number of offices and increased the number of common areas to
improve our work agility, performance and well-being.
I’m grateful for all the accomplishments we achieved together with our extended
CEF community in 2021 and look to the coming periods with optimism and excitement.
Ivana Nedižavec Korada
Deputy Director
CEF

62 CEF BUSINESS REPORT 2021
FINANCIAL STATEMENTS 63
1. Financial statements
1.1. STATEMENT OF FINANCIAL POSITION 1.2. STATEMENT OF PROFIT OR LOSS
Items
Note
December
31, 2021
EUR
December
31, 2020
Non-current assets 659,011 696,803
Intangible assets 1 24,839 34,154
Property, plant and equipment 2 634,171 662,649
Current assets 2,308,449 2,357,657
Trade receivables 3 65,744 75,508
Cash and cash equivalents 4 2,242,706 2,282,149
Prepayments and other assets 5 655,436 47,543
TOTAL ASSETS 3,622,896 3,102,004
Equity 1,401,802 1,409,949
Share capital (Founder's funds) 6 4,173 4,173
Capital surplus 6 225 225
Fair value reserve 6 -80,332 -38,491
General reserves 6 1,477,736 1,444,042
EUR
Items Note 2021 2020
Revenue from program 11 2,446,709 2,338,116
Other revenue 42,044 679
Total revenue 2,488,753 2,338,795
Cost of materials 13 77,473 57,957
Cost of services 14 704,344 636,754
Labor costs 15 1,580,384 1,438,499
Depreciation and amortization costs 16 78,664 69,846
Other operating expenses 17 10,142 13,219
Other expenses 19 2,695 0
Total expenses 2,453,701 2,216,275
Financial income 12 143 5,479
Financial costs 18 1,501 2,924
Annual result 33,694 125,075
Provisions and long-term accrued costs and deferred revenue 952,676 926,171
Provisions 7 293,574 229,277
Long-term accrued costs and deferred revenue 8 659,102 696,895
Operating liabilities 305,359 146,732
Trade payables 9 145,403 16,847
Liabilities to employees 9 138,673 125,661
Other short-term payables 9 21,284 4,223
Advances payable and other current liabilities 10 963,058 619,151
TOTAL EQUITY AND LIABILITIES 3,622,896 3,102,004
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.
1.3. STATEMENT OF OTHER COMPREHENSIVE INCOME
Comprehensive income
Generated in
2021
EUR
Generated in
2020
Excess of revenues over expenses 33,694 125,075
Other comprehensive income
Actuarial gains (losses) 41,842 -15,920
Other comprehensive income for the period -41,842 -15,920
Total comprehensive income (loss) for the period -8,147 -109,155
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.

64 CEF BUSINESS REPORT 2021
FINANCIAL STATEMENTS 65
1.4. CASH FLOW STATEMENT
1.5. STATEMENT OF CHANGES IN EQUITY
EUR
Items 2021 2020
Cash flows from operating activities
Annual result 2,488,753 2,338,795
Total expenses -2,453,701 -2,216,275
Adjustments for
Amortization and depreciation 78,664 69,846
Actuarial gains (losses) -41,842 -15,920
Write-downs of property, plant and equipment 2,524 0
Financial income 0 2,560
Financial costs -1,501 -2,924
Operating profit before changes in net current assets and taxes 72,898 176,082
YEAR 2021
Items
Share capital
(Founder's
funds)
Capital
surplus
Fair Value
reserves
General
reserves
EUR
Total
Equity
Opening balance as of January 1, 2021 4,173 225 -38,491 1,444,042 1,409,949
Entry of additional capital payments 0 0 0 0 0
Total comprehensive income (loss) for the
period
Other components of the comprehensive
income for the reporting period
0 0 -41,842 33,694 -8,147
0 0 -41,842 0 -41,842
Annual result 0 0 0 33,694 33,694
Closing balance as of December 31, 2021 4,173 225 -80,332 1,477,736 1,401,802
Changes in net current assets and provisions
Change in receivables 9,764 17,513
Change in prepayments and other assets -607,893 71,570
Change in operating liabilities 158,628 -66,306
Change in provisions 26,504 140,940
Change in advances payable and other current liabilities 343,907 265,321
Net cash flow from operating activities 3,809 605,120
Cash flow from investing activities
Interest received 143 2,919
Acquisitions of property plant and equipment -43,395 -175,695
Net cash flow from investing activities -43,252 -172,776
Cash flow from financing activities
Interest paid 0 0
Net cash flow from financing activities 0 0
Cash and cash equivalents at the beginning of period 2,282,149 1,849,806
YEAR 2020
Items
Share capital
(Founder’s
funds)
Capital
surplus
Fair
value
reserves
General
reserves
EUR
Total
Equity
Opening balance as of January 1, 2020 4,173 225 -22,570 1,318,967 1,300,795
Entry of additional capital payments 0 0 0 0 0
Total comprehensive income (loss) for the
period 0 0 -15,920 125,075 109,155
Other components of the comprehensive
income for the reporting period 0 0 -15,920 0 -15,920
Annual result 0 0 0 125,075 125,075
Closing balance as of December 31, 2020 4,173 225 -38,491 1,444,042 1,409,949
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.
Net increase in cash and cash equivalents -39,444 432,343
Cash and cash equivalents at the end of period 2,242,706 2,282,149
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.

66 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 67
2. Introductory notes and accounting
policies
2.1. REPORTING ENTITY
The reporting organization Center of Excellence in Finance (CEF) is based in Slovenia. Its registered
office is at Cankarjeva 18, SI-1000 Ljubljana, Slovenia.
The CEF supports capacity development for finance officials in South East Europe through learning
and knowledge sharing. Its core activities include developing, designing and implementing learning
events and knowledge products in the areas of public financial management, tax policy and administration,
central banking, data analysis for designing policies and leadership for managing reforms.
The financial statements of the CEF were prepared for the business year that ended on December
31, 2021.
2.2. BASIS FOR PREPARATION
(A) STATEMENT OF COMPLIANCE. The financial statements were prepared in accordance with
the International Financial Reporting Standards (IFRS) as adopted by the EU and the provisions
of the CEF Internal Rules.
The financial statements were approved by the CEF Director on May 6, 2022.
The financial statements were compiled in accordance with the assumption of ongoing concern.
The CEF’s work is not influenced by seasons; however, the financial result depends on the number
and duration of approved projects. Covid-19 did not affect implementation of the program in
quantity. Program that was planned to be delivered in classrooms was and is delivered online.
(B) MEASUREMENT BASIS. The financial statements were compiled on a historical cost basis.
(C) FUNCTIONAL AND PRESENTATION CURRENCY. The financial statements are expressed in
euros, the CEF’s functional currency. All accounting data presented in euros are rounded to the
nearest integer.
(D) REPORTING PERIOD. The CEF’s financial year equals the calendar year.
(E) USE OF ESTIMATES AND JUDGMENTS. When preparing the financial statements, the CEF’s
management is required to make judgments, estimates and assumptions that affect the application
of accounting policies and the reported values of assets, liabilities, revenues and expenses
in accordance with the IFRS. Actual results may vary from these estimates.
The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised and in any future periods
affected. Estimates and assumptions are mainly associated with: estimated useful lives of
amortizable assets, asset impairment, employee earnings, provisions, and contingent liabilities.
2.3. SIGNIFICANT ACCOUNTING POLICIES
The CEF has consistently applied the accounting policies to all periods presented in its financial
statements.
(A) FOREIGN CURRENCY
Foreign currency transactions
Foreign currency transactions are converted into the functional currency of the CEF using the
exchange rate applied on the day they arise. Cash, cash equivalents and liabilities denominated
in foreign currencies are converted into the functional currency using the exchange rate applicable
at the end of the reporting period. Positive or negative exchange differences are differences
between the amortized cost in the functional currency at the beginning of the period, increased
or decreased by the amount of applicable interest and payments in the period, and the amortized
cost expressed in foreign currency, converted using the exchange rate at the end of the period.
Exchange rate differences are recognized in the income statement.
The ECB’s reference exchange rates and the Bank of Slovenia’s monthly exchange rates for currencies
for which the ECB does not publish reference exchange rates are used to convert receivables
denominated in foreign currencies
(B) FINANCIAL INSTRUMENTS
Non-derivative financial assets
Receivables and deposits are initially recognized on the day they arise. Financial assets are
derecognized when the contractual rights to cash flows from these assets expire, or when the
CEF transfers the rights to cash flows from financial assets based on a transaction that involves
the transfer of all risks and benefits associated with the ownership of the financial asset.
Depending on their maturity, they are classified as current financial assets (maturity of up to 12
months from the date of the statement of financial position) or non-current financial assets (maturity
of more than 12 months from the date of the statement of financial position). Deposits and
receivables are recognized initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, they are measured at amortized cost using the effective interest
method, less any impairment losses.
Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
not quoted on an active market. They are initially recognized at fair value and increased by any direct
transaction costs. After initial recognition, loans and receivables are measured at amortized
cost using the effective interest rate method, less any impairment losses. Loans and receivables
include operating and other receivables.
The CEF does not invest in non-derivative financial assets with fixed or determinable payments.
The CEF checks the materiality of disclosed receivables at least once a year. Receivables, for
which there exists the possibility that they will not be settled in part (or not at all) within 180 days
of maturity, are generally deemed as doubtful. The CEF creates an allowance for doubtful and
disputed receivables in an amount equal to 100%, which is charged to revaluation expenses. CEF
did not make material changes to impairment policy for undue receivables as IFRS 9 requires, as
the effects are immaterial.

68 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 69
Cash and cash equivalents
Cash and cash equivalents include cash in hand and sight deposits.
Financial and operating liabilities
Other financial and operating liabilities are initially recognized at fair value on the day they arise,
and afterwards at amortized cost, using the effective interest rate method.
Liabilities are only derecognized if they have been extinguished, meaning that they have been
fulfilled. The difference between the carrying amount of liabilities that have been extinguished
and the consideration paid (including non-monetary assets or assumed liabilities) is recognized
immediately in the profit or loss account.
Share capital
Share capital is the capital contributed by the founder. The CEF’s total equity comprises capital
and capital surplus.
General reserves
As envisaged in Article 17 of the CEF Financial Rules and Regulations, general reserves are created
to cover the annual running costs of the CEF and its core program and shall amount at least
to the total sum of one million euro. Financial result of the year shall be transferred to the general
reserves, unless otherwise decided by the Governing Board.
(C) PROPERTY, PLANT AND EQUIPMENT
Recognition and measurement
Items of property, plant and equipment are disclosed at historical cost, less depreciation costs
and impairment losses.
Costs of assets produced comprise the costs of materials, direct costs of labor, other costs that
can be directly attributed to enabling the use of assets for their intended purpose, costs of disposal
and removal, costs of restoring the location of the asset to its original state, and capitalized
borrowing costs.
Any computer software that contributes significantly to the assets’ functionality should be capitalized
as part of these assets.
Components of items of property, plant and equipment that have different useful lives are accounted
for as separate items.
Subsequent costs
Costs arising from the replacement of parts of fixed assets are recognized at carrying value if
future economic benefits associated with a part are likely to increase and if its historical cost can
be measured reliably. All other costs (such as daily maintenance) are recognized as expenses in
the income statement in the period they arise.
Spare parts
Spare parts and maintenance equipment of lower value with useful lives of up to one year are
treated as inventory and recognized as costs in the income statement. Spare parts and equipment
of significant value with estimated useful lives exceeding one year are recognized as items
of property, plant and equipment.
Depreciation
Depreciation is calculated using the straight-line method based on the useful life of each component
of an item of property, plant and equipment. This is the most accurate method for predicting
asset usage patterns.
Estimated useful lives for the current and comparative period are as follows:
Depreciation rates 2021 2020
Computer equipment, mobile phone, copy machine 2–3 years 2–3 years
Investment in premises 33 years 33 years
Other equipment 3–5 years 3–5 years
Depreciation methods, useful lives and residual values are reviewed at the end of the reporting
period and adjusted if necessary. No changes in recording depreciation were applied in 2021.
(D) INTANGIBLE ASSETS
Other intangible assets
Other intangible assets with limited useful lives are disclosed at historical cost, less amortization
costs and accumulated impairment losses.
Subsequent costs
Subsequent costs associated with intangible assets are only capitalized if they increase future
economic benefits arising from the asset to which the cost is related. All other costs are recognized
as expenses in the income statement when they arise.
Amortization
Amortization is calculated based on an asset’s purchase value or another value that is used
instead. Amortization is recognized in the income statement using the straight-line method and
is based on the useful life of intangible assets, starting from the date the asset is available for
use. This is the most accurate method for predicting the patterns of future economic benefits
associated with the asset.
Estimated useful lives for the current and comparative year are as follows:
Amortization rates 2021 2020
Software 2–3 years 2–3 years
Other intangible assets 2–3 years 2–3 years
Amortization methods, useful lives and other values are reviewed at the end of each business
year and adjusted if necessary. No changes in recording amortization were applied in 2021.

70 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 71
(E) SHORT-TERM DEFERRED COSTS AND ACCRUED REVENUE
Costs that will occur in the next financial year, but were already paid in the financial year, are
recorded as short-term deferred costs.
Short-term accrued revenues are revenues where costs occurred in the financial period but the
formal report and reimbursement request will be submitted to the donor in the next financial year.
(F) EMPLOYEE EARNINGS
Liabilities from short-term employee earnings are measured on an undiscounted basis and are
recognized as expenses as soon as the work is performed by an employee and comprise basic
gross salary, allowances, and benefits.
(G) SHORT-TERM ACCRUED COSTS AND DEFERRED REVENUE
The CEF records short-term deferred revenues for revenues from projects that were received in
the financial year (as advance payments) for deliverables due in the next financial year.
The CEF reports short-term accrued costs for materials and services that were delivered in the
financial year, but for which invoices will be received in the next financial year.
(I) REVENUE
Revenue is recognized as follows:
For long-term projects, the revenue from services rendered is recognized based on the stage of
completion as at the balance sheet date. Under this method, the revenue is recognized in the
accounting period in which the services are rendered.
Grants
All types of grants are recognized in the financial statements when the CEF submits a report
and/or issues a reimbursement request or a payment request. In addition, they are recognized in
deferred revenues when the work was done but the report was not submitted by the end of the
financial year.
Deferred/accrued revenues and expenses
The CEF records in short-term deferred revenues advance payments received for projects with
expected deliverables in the next financial year. Short-term accrued revenues comprise revenues
generated from activities delivered in the financial year that will be reported and paid for in the
next financial year.
The CEF records in short-term deferred costs expenses that were paid in the financial year (such
as advance payments) that will occur in the next financial year, and in short-term accrued costs
expenses in the financial year for which invoices have not yet arrived.
(H) PROVISIONS
Provisions are recognized for legal or constructive obligation as a result of a past event that can
be measured reliably, and it is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by discounting expected future cash flows at a
pre-tax rate that reflects current market assessments of the time value of money, and—where
appropriate—the risks specific to the liability.
Provisions for severance payments and long-service bonuses
Pursuant to the internal rules, the CEF is obliged to pay long-service bonuses and severance
payments to employees and has created long-term provisions for this purpose. There are no other
obligations relating to pensions. Provisions are created in the amount of estimated future severance
payments and long-service bonuses, discounted at the end of the reporting period.
The CEF created non-current provisions in 2018 for long-service bonuses and severance payments
at retirement as the present value of future payments required to settle liabilities arising
from employees’ service in the current and future periods, taking into account the costs of severance
payments at retirement and the costs of all expected long-service bonuses until retirement.
A discount rate of 1.169% was set for the calculation on December 31, 2021 based on the yields
on 15-year corporate bonds with high credit rating in the euro area. The calculation was prepared
by an outsourced actuary.
Labor costs and interest expenses are recognized in the income statement, while recalculated
post-employment benefits and unrealized actuarial gains or losses from severance pay are recognized
as an equity item in other comprehensive income.
(J) FINANCIAL INCOME AND FINANCIAL EXPENSES
Financial income includes interest from deposits and positive exchange rate differences.
Financial expenses include negative exchange rate differences.
(K) INITIAL APPLICATION OF NEW AMENDMENTS TO THE EXISTING STANDARDS
EFFECTIVE FOR THE CURRENT REPORTING PERIOD
The following new standards, amendments to the existing standards and interpretation issued by
the International Accounting Standards Board (IASB) are effective for the current reporting period:
• Amendments to IFRS 9 “Financial Instruments”, IAS 39 “Financial Instruments: Recognition
and Measurement”, IFRS 7 “Financial Instruments: Disclosures”, IFRS 4 “Insurance Contracts”
and IFRS 16 “Leases” – Interest Rate Benchmark Reform – Phase 2 (effective for
annual periods beginning on or after 1 January 2021),
• Amendments to IFRS 16 “Leases” – Covid-19-Related Rent Concessions (effective for annual
periods beginning on or after 1 June 2020. Earlier application is permitted),*
• Amendments to IFRS 4 “Insurance Contracts” – Extension of the Temporary Exemption from
Applying IFRS 9 (the expiry date for the temporary exemption from IFRS 9 was extended to
annual periods beginning on or after 1 January 2023).
The adoption of these new standards, amendments to the existing standards and interpretation
has not led to any material changes in the CEFs financial statements.

72 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 73
(L) STANDARDS AND INTERPRETATIONS ISSUED BY THE IASB BUT NOT YET EFFECTIVE
At the date of authorisation of these financial statements, the following new standards, amendments
to existing standards and new interpretation were in issue, but not yet effective:
• IFRS 17 “Insurance Contracts” including amendments to IFRS 17 (effective for annual periods
beginning on or after 1 January 2023),
• Amendments to IFRS 3 “Business Combinations” - Reference to the Conceptual Framework with
amendments to IFRS 3 (effective for annual periods beginning on or after 1 January 2022),
• Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in
Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture and further amendments (effective date deferred indefinitely until
the research project on the equity method has been concluded),
• Amendments to IFRS 16 “Leases” - Covid-19-Related Rent Concessions beyond 30 June 2021
(effective for annual reporting periods beginning on or after 1 April 2021. Earlier application
permitted, including in financial statements not yet authorised for issue at the date the amendment
is issued.)*
• Amendments to IFRS 17 “Insurance contracts” - Initial Application of IFRS 17 and IFRS 9 –
Comparative Information (effective for annual periods beginning on or after 1 January 2023).
• Amendments to IAS 1 “Presentation of Financial Statements” - Classification of Liabilities as
Current or Non-Current (effective for annual periods beginning on or after 1 January 2023),
• Amendments to IAS 1 “Presentation of Financial Statements” - Disclosure of Accounting Policies
(effective for annual periods beginning on or after 1 January 2023),
• Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” -
Definition of Accounting Estimates (effective for annual periods beginning on or after 1 January
2023),
• Amendments to IAS 12 “Income Taxes” - Deferred Tax related to Assets and Liabilities arising
from a Single Transaction (effective for annual periods beginning on or after 1 January 2023),
• Amendments to IAS 16 “Property, Plant and Equipment” - Proceeds before Intended Use (effective
for annual periods beginning on or after 1 January 2022),
• Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” - Onerous
Contracts - Cost of Fulfilling a Contract (effective for annual periods beginning on or after 1
January 2022),
• Amendments to various standards due to “Improvements to IFRSs (cycle 2018 -2020)” resulting
from the annual improvement project of IFRS (IFRS 1, IFRS 9, IFRS 16 and IAS 41) primarily
with a view to removing inconsistencies and clarifying wording (The amendments to IFRS
1, IFRS 9 and IAS 41 are effective for annual periods beginning on or after 1 January 2022. The
amendment to IFRS 16 only regards an illustrative example, so no effective date is stated.).
The CEF has elected not to adopt these new standards, amendments to existing standards and
new interpretation in advance of their effective dates. The CEF anticipates that the adoption of
these standards, amendments to existing standards and new interpretations will have no material
impact on the financial statements of the CEF in the period of initial application.
3. Notes to the financial statements
NOTE 1: INTANGIBLE ASSETS
Intangible assets
January 1,
2021
New
investments Write-offs Amortization
EUR
December 31,
2021
Purchase value 57,816 0 -1,558 0 56,258
Accumulated amortization -23,662 0 1,558 -9,315 -31,418
Carrying value 34,154 0 0 -9,315 24,839
Intangible assets
January 1,
2020
New
investments Write-offs Amortization
December 31,
2020
Purchase value 57,816 0 0 0 57,816
Accumulated amortization -14,347 0 0 -9,315 -23,662
Carrying value 43,469 0 0 -9,315 34,154
Intangible assets comprise computer software and textbooks for TIAPS program and are recorded at purchase value. A
change in position results from investment and amortization. In 2021 CEF didn’t have investments in intangible assets.
NOTE 2: EQUIPMENT
Equipment
January 1,
2021
New
investments Write-offs Depreciation
EUR
December 31,
2021
Purchase value 1,312,627 43,395 -24,484 0 1,331,538
Accumulated depreciation -649,977 0 21,960 -69,350 -697.367
Carrying value 662,649 43,395 -2,524 -69,350 634,171
Equipment
January 1,
2020
New
investments Write-offs Depreciation
December 31,
2020
Purchase value 1,136,931 175,695 0 0 1,312,627
Accumulated depreciation -589,446 0 0 -60,532 -649,977
Carrying value 547,486 175,695 0 -60,532 662,649
Equipment owned by the CEF is used to carry out the CEF’s activities and comprises office, computer and other
equipment, as well as investments and improvements in the business premises. A change in the position results
from purchases, write-offs and accumulated depreciation. Write-offs relate to the equipment that is no longer in use.

74 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 75
New investments in 2021 comprise electronic equipment (computers, printers, projectors). The CEF’s equipment is
not pledged. Liabilities for purchase of equipment as of December 31, 2021 amount to EUR 19,383 and in amount
to EUR 6,405 as of December 31, 2020.
NOTE 4: CASH AND CASH EQUIVALENTS
EUR
Cash and cash equivalents December 31, 2021 December 31, 2020
NOTE 3: TRADE RECEIVABLES
Trade receivables December 31, 2021 December 31, 2020
Banka Slovenije 1,517 0
IMF 0 38,766
Other receivables 64,227 36,742
Total 65,744 75,508
Trade receivables comprise claims from projects and other receivables from original documents and without any
valuation adjustment.
Trade receivables are non-interest bearing. The method of impairment did not change in 2021.
Trade receivables change from year to year depending on the life cycle of a project run by the CEF.
Other receivables comprise VAT refunds and social security refunds.
EUR
Cash and deposits in EUR 2,241.256 2,279,963
Cash and deposits in USD 1,135 1,862
Cash in hand 315 324
Total 2,242,706 2,282,149
Cash and cash equivalents comprise short-term deposits in EUR and USD with UniCredit Bank, Ljubljana.
NOTE 5: PREPAYMENTS AND OTHER ASSETS
EUR
Prepayments and other assets January 1, 2021 Disbursement Increases December 31, 2021
Accrued revenue (not yet invoiced) 0 0 627,127 627,127
Advance payments 23,124 -23,124 719 719
Deferred costs 24,419 -24,419 27,590 27,590
Total 47,543 -47,543 655,436 655,436
Age structure and changes in impairments of receivables
EUR
December 31, 2021 December 31, 2020
Aging of receivables Gross amount Impairments Gross amount Impairments
Not past due 65,744 0 75,508 0
Past due up to 90 days 0 0 0 0
Past due from 91 to 180 days 0 0 0 0
Past due from 181 to 365 days 0 0 0 0
Prepayments and other assets January 1, 2020 Disbursement Increases December 31, 2020
Accrued revenue (not yet invoiced) 93,078 -93,078 0 0
Advance payments 4,339 -4,339 23,124 23,124
Deferred costs 21,696 -1,356 4,079 24,419
Total 119,113 -98,773 27,203 47,543
Short-term deferred costs and accrued revenue comprise accrued income and costs that were paid in 2021 and will
occur in 2022, such as insurance premiums.
More than one year 0 0 0 0
Total 65,744 0 75,508 0

76 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 77
NOTE 6: EQUITY
Equity (Founder’s funds) December 31, 2021 December 31, 2020
Share capital (Founder's funds) 4,173 4,173
Capital surplus 225 225
Fair value reserves -80,332 -38,491
General reserves 1,477,736 1,444,042
Total 1,401,802 1.409.949
Share capital represents start-up contribution in the amount of EUR 4,173 and capital surplus.
The surplus generated in 2021 was allocated to the general reserve fund (as envisaged in the internal rules of the
CEF).
Fair value reserves from actuarial calculations of severance pay were negative in the amount of EUR 80,332 at the
end of 2021.
NOTE 7: PROVISIONS
Provisions January 1, 2021 Disbursement Increases December 31, 2021
Reserves for severance pay 192,900 -14,853 79,150 257,197
Other provisions 36,377 0 0 36,377
Total 229,277 -14,853 79,150 293,574
Provisions January 1, 2020 Disbursement Increases December 31, 2020
Reserves for severance pay 157,808 0 35,092 192,900
Other provisions 36,377 0 0 36,377
Total 194,185 0 35,092 229,277
The CEF created provisions for severance payments and long-service bonuses based on the current value of its liabilities
to employees (see also Note 15).
The reserves for textbooks were created as CEF received some funds that were specifically dedicated to prepare textbooks
for TIAPS program. Textbooks for Level 1 have been finalized in 2019 (see also Note 1). Textbooks for Level 2
are being prepared to be put in use in the future. The CEF will need to keep these textbooks updated, so funds will be
reserved for this also in the future.
EUR
EUR
EUR
NOTE 8: GOVERNMENT GRANTS
Long-term accrued costs
and deferred revenue
January
1, 2021
New
investments
Write
offs
Amortization
and
depreciation
EUR
December
31, 2021
Fund to finance amortization and depreciation 696,895 43,395 -2,524 -78,664 659,102
Carrying value 659,102
Long-term accrued costs
and deferred revenue
January
1, 2020
New
investments
Write
offs
Amortization
and
Depreciation
EUR
December
31, 2020
Fund to finance amortization and depreciation 591,046 175,695 0 -69,846 696,895
Carrying value 696,895
Government grants are covering the depreciation and amortization of long-term assets.
NOTE 9: OPERATING LIABILITIES
Operating liabilities December 31, 2021 December 31, 2020
Trade payables to suppliers in Slovenia 125,801 15,435
Trade payables to suppliers outside Slovenia 19,602 1,412
Liabilities to employees 138,673 125,661
Other short-term liabilities 21,284 4,223
Total 305,359 146,732
Operating liabilities comprise accounts payable (short-term trade payables to suppliers of goods and services, including
maintenance services), liabilities to employees (December salary), and other short-term liabilities (other taxes and
lecturers’ fees).
NOTE 10: ADVANCES PAYABLE AND OTHER CURRENT LIABILITIES
Advances payable and
other current liabilities January 1, 2021 Disbursements Increases December 31, 2021
Deferred revenues for projects 385,241 -385,241 906,611 906,611
Other accrued costs 233,909 -233,909 56,446 56,446
Total 619,151 -619,150 963,057 963,058
EUR
EUR

78 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 79
Advances payable and
other current liabilities January 1, 2020 Disbursements Increases December 31, 2020
Deferred revenues for projects 302,731 -302,731 385,241 385,241
Other accrued costs 51,098 -51,098 233,910 233,910
Total 353,829 -353,829 619,151 619,151
Contract liabilities represent revenues received in 2021 for costs that will occur in 2022; EUR 806,611 for the FISR
project, financed by European Union and EUR 100,000 for PACT L2 North Macedonia co-financed by Ministry of Finance
Slovakia.
Other accrued costs relate to costs that occurred in 2021 and invoices we not received yet, auditing services and
costs of unused annual leave days that were allocated to the staff for the year 2021 and are to be used by August
31, 2022.
NOTE 11: REVENUE FROM PROGRAM
Revenue from program in 2021 Project Invoiced From/To
From/To
deferred
revenue
EUR
Net
amount
Ministry of Finance, Slovenia Program 2021 1,000,000 0 0 1,000,000
Ministry of Foreign Affairs, Slovenia PACT N. Macedonia 199,952 0 0 199,952
Ministry of Finance, the Netherlands
Tax Administration,
PIFC
229,001 0 0 229,001
Ministry of Finance, Slovakia FISR Moldova 61,094 0 0 61,094
Banka Slovenije CB workshops (MFE)* 202,097 0 0 202,097
EU FISR 627,126 0 0 627,126
CIPFA Conference 15,066 0 0 15,066
IMF Workshops 74,580 0 0 74,580
Total 2,408,916 0 0 2,408,916
To provisions to finance
amortization and depreciation
From provisions to finance
amortization and depreciation
0 0 -40,872 -40,872
0 78,664 0 78,664
Total 2,408,916 78,664 -40,872 2,446,709
Transfer to reserves 0 0 0 -33,694
*Macroeconomic and Financial Environment
Revenue from program in 2020 Project Invoiced
From/To
accrued
revenue
From/To
deferred
revenue
EUR
Net
amount
Ministry of Finance, Slovenia Program 2020 1,000,000 0 0 1,000,000
Ministry of Foreign Affairs, Slovenia PACT N. Macedonia 199,910 0 0 199,910
Ministry of Foreign Affairs, Slovenia TIAPS Montenegro 48,277 0 0 48,277
Ministry of Foreign Affairs, Slovenia PACT Montenegro 34,744 0 0 34,744
Ministry of Finance, the Netherlands Tax Administration, PIFC 103,182 0 0 103,182
Ministry of Finance, Slovakia
PACT Montenegro, FISR
Moldova
130,110 0 0 130,110
Banka Slovenije CB workshops (MFE)* 213,450 0 0 213,450
EU FISR 566,811 0 0 566,811
GIZ TIAPS Georgia 72,293 0 0 72,293
IMF Workshops 42,464 0 0 42,464
World Bank Workshops 32,724 0 0 32,724
Total 2,443,965 0 0 2,443,965
To provisions to finance
amortization and depreciation
From provisions to finance
amortization and depreciation
0 0 -175,695 -175,695
0 69,846 0 69,846
Total 2,443,965 69,846 -175,695 2,338,116
Transfer to reserves 0 0 0 -125,075
*Macroeconomic and Financial Environment
In addition, the Government of Slovenia contributed to the CEF by granting free of charge premises. This is an in-kind
contribution that was not recorded in the CEF books estimated at EUR 12 per square meter (in total EUR 182,184 +
VAT (EUR 40,081) = EUR 222,265.
NOTE 12: Financial income represents interest on deposits and exchange rate changes.
NOTE 13: COSTS OF MATERIALS
Costs of materials 2021 2020
Costs of energy 33,359 33,765
Materials and spare parts 11,840 15,909
Office supplies 25,813 2,359
Other costs of materials 6,461 5,924
Total 77,473 57,957
EUR
Costs of materials and spare parts comprise spare parts for equipment and materials for renovating and maintaining
the CEF premises.

80 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 81
NOTE 14: COSTS OF SERVICES
Costs of services 2021 2020
Production services costs 146,751 139,049
Transport services costs for events 40,255 39,029
Rents 30,636 26,531
Costs of employees’ business travels 7,904 5,744
Payments, bank services, insurance costs 14,852 10,467
Intellectual services costs for events 212,873 188,033
Intellectual services costs 19,203 20,668
Costs of exhibition, advertising 3,491 2,918
Personal services costs for events (authors, translators, mentors) 152,817 117,814
Costs of other services for events 75,561 86,501
Total 704,344 636,754
Intellectual services for events records fees for experts, authors, translators and mentors who work from their companies
and issue invoices to the CEF; and personal services for events records fees for experts, authors, translators
and mentors who are paid by contract. The CEF records transport services for events (e.g. travel for participants) only
when sponsored by a donor. Other services for events comprise copying materials, rent of interpretation equipment
and classrooms when workshops are organized outside the CEF, as well as refreshments and lunches for participants.
Intellectual services are costs of experts that support the CEF with services, such as communication, legal advice
and training.
NOTE 15: LABOR COSTS
Labor costs 2021 2020
Employee salaries 1,183,725 1,090,379
Employee salaries compensation 16,978 10,374
Reimbursement and other employee benefits 170,127 159,037
Employer's salaries contributions, taxes 173,667 161,774
Other labor costs 35,887 16,936
Total 1,580,384 1,438,499
EUR
EUR
In 2021, the CEF calculated costs of annual leave days that were unused in 2021 and are to be used by the end of
August, 2022.
Other labor costs comprise provisions for severance payments and long-service bonuses.
The earnings of members of the Executive Management and Governing Board
Data regarding groups of persons
EUR
Employees under individual employment contract
December 31, 2021 December 31, 2020
Salaries 78,214 68,442
Reimbursements and other employee benefits 7,300 2,127
Total 85,513 70,569
Members of the Governing Board are not compensated.
The director received anniversary award for 30 years of service as per Annex I to the Rules of Employment, Article 15.
Number of employees by formal education level
Number of employees by formal education level (EQF) December 31, 2021 December 31, 2020
Level 4 2 2
Level 5 3 3
Level 6 6 6
Level 7 18 18
Level 8 4 4
Total 33 33
NOTE 16: AMORTIZATION AND DEPRECIATION
Amortization and depreciation 2021 2020
Amortization of intangible assets 9,315 9,315
Depreciation of equipment 50,844 42,043
Depreciation of other fixed assets 18,506 18,489
Total 78,664 69,846
EUR
The CEF calculates salaries and other labor-related costs (meal and travel allowance, supplement health and pension
insurance, travel insurance) according to the CEF Rules of Employment, Annex I. On December 31, 2021, the CEF had
33 employees, same as on December 31, 2020. In 2021, there were four international employees, who do not pay
social security and personal income taxes.

82 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 83
NOTE 17: OTHER OPERATING EXPENSES
EUR
Other operating expenses 2021 2020
Contributions not related to labor costs 377 1,510
Students’ work 9,239 9,343
Other costs 526 2,366
Total 10,142 13,219
NOTE 18: Financial expenses record negative exchange rate changes.
NOTE 19: Other expenses represent differences from rounded amounts paid in cash.
4. Determination of fair value
and risk management
The CEF is exposed to the following risks: strategic, reputational, operational and financial.
The CEF’s prudent approach to risk management helps the CEF maintain its high level of operational
quality and is crucial for achieving its business goals. The use of standard methodologies
and risk management procedures enables quality risk assessment, timely responses, and minimum
exposure of the CEF to major risks, being strategic, reputational, operational and financial.
Strategic risks may arise from the pursuit of an unsuccessful business plan, poor business decisions,
substandard execution of decisions, inadequate resource allocation, and/or from a failure
to respond well to changes in the business environment. The CEF manages these risks by close
cooperation and under supervision by the Governing Board and other stakeholders.
Reputational risks may result in damages to the CEF’s reputation, which may manifest either in
lost revenues or increased costs and in destruction of stakeholders’ value and trust. To minimize
these risks, the CEF invests in building its ethics, security, sustainability, quality and innovation to
remain capable of answering to stakeholders’ needs.
Operational risks are imputed in CEF business activities through inadequate or failed internal
processes, people and systems, as well as from some external events. The CEF manages these
risks by strict implementation of internal procedures that include, but are not limited to, strict implementation
of the principle of four eyes, introduction of the internal audit function, and training
managers to improve their control functions.
Financial risks are associated with financing, including budgeting, managing expenses within
budgets, and overspending in case a project cannot be successfully completed without additional
expenses. The CEF manages these risks by budgeting for all expenses that might occur within the
project, and building sufficient reserves to cover potential loss from the project.
CREDIT RISK
EUR
Credit risk Note December 31, 2021 December 31, 2020
Cash and cash equivalents 4 2,242,706 2,282,149
Trade receivables 3 65,744 75,508
Total 2,308,449 2,357,657

84 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 85
CURRENCY RISK
Exposure to changes in exchange rates is presented in the table below.
Currency risk December 31, 2021 EUR USD CHF GBP
Cash and cash equivalents 2,242,706 2,241,571 1,135 0 0
Trade receivables 65,744 65,744 0 0 0
Operating liabilities 305,359 304,876 0 484 0
Total 2,613,809 2,612,190 1,135 484 0
Currency risk December 31, 2020 EUR USD CHF GBP
Cash and cash equivalents 2,282,149 2,280,967 1,182 0 0
Trade receivables 75,508 75,508 0 0 0
Operating liabilities 146,732 145,320 0 1,412 0
Total 2,504,389 2,501,795 1,182 1,412 0
EUR
EUR
Financial liabilities
Fair value is calculated for reporting purposes based on the present value of future principal and interest payments,
discounted using a market interest rate at the end of the reporting period.
Trade and other receivables
The fair value of operating and other receivables is calculated for reporting purposes based on the present value of
future principal and interest, discounted according to a market interest rate at the reporting date.
Financial instruments are categorized to three levels with respect to the calculation of their fair value:
Level 1 – assets and liabilities at market price (the use of published prices arising on an active market for the same
assets or liabilities);
Level 2 – assets and liabilities not classified as Level 1 but whose value is determined directly or indirectly on the
basis of market observables;
Level 3 – assets and liabilities whose value cannot be determined on the basis of market observables and thus cannot
be classified to Level 1 or Level 2.
The fair value of current assets and liabilities is equal to their carrying amount.
Change in exchange rate would not have significant effect on the financial statements.
FAIR VALUE
EUR
INTEREST-RATE RISK
Exposure to interest-rate risk, i.e. the risk of changes in interest rates on deposits, is low. By planning investment activities,
current operations and deposits, the CEF’s cash flows are coordinated and do not require borrowings.
Interest-rate risk December 31, 2021 December 31, 2020
Financial instruments at fixed interest rates
Financial assets (deposits) 2,237,471 2,261,450
Financial liabilities 0 0
Financial instruments at fixed interest rates
Financial assets 0 0
Financial liabilities 0 0
Total 2,237,471 2,261,450
Determination of fair value
Given the CEF’s accounting policies and classification approach, the determination of the fair value of both financial
and non-financial assets and liabilities is necessary.
The fair values of individual groups of assets were determined for measurement and/or reporting purposes based on
the method described below.
EUR
Fair value
Carrying
amount
2021
Fair value
Carrying
amount
2020
Fair value
Trade receivables 65,744 65,744 75,508 75,508
Cash and cash equivalents 2,242,706 2,242,706 2,282,149 2,282,149
Prepayments and other assets 655,436 655,436 47,543 47,543
Trade payables 145,403 145,403 16,847 16,847
Other short-term payables 21,284 21,284 4,223 4,223
Advances payable and other current liabilities 963,058 963,058 619,151 619,151
Total 4,093,629 4,093,629 3,045,421 3,045,421
FAIR VALUE OF ASSETS
Fair value of assets Level 1 Level 2
2021
Level 3 Level 1 Level 2
EUR
2020
Level 3
Trade receivables 0 0 65,744 0 0 75,508
Cash and cash equivalents 2,242,706 0 0 2,282,149 0 0
Prepayments and other assets 0 0 655,436 0 0 47,543
Total 2,242,706 0 721,170 2,282,149 0 123,051
Non-current financial assets
The fair value of non-current financial assets is determined on the closing market price as at the reporting date.

86
CEF FINANCIAL REPORT 2021
CERTIFIED AUDITOR’S REPORT 87
FAIR VALUE OF LIABILITIES
1.
Deloitte revizija d.o.o.
Dunajska cesta 165
1000 Ljubljana
Slovenia
Fair value of liabilities Level 1 Level 2
2021
Level 3 Level 1 Level 2
EUR
2020
Level 3
Trade payables 145,403 0 0 16,847 0 0
Other short-term payables 21,284 0 0 4,223 0 0
Advances payable and other
current liabilities
963,058 0 0 619,151 0 0
Total 1,129,744 0 0 640,221 0 0
5. Related party transactions
The CEF does not have related parties.
The earnings of members of the Executive Management and Governing Board are presented in Note 15: Labor costs.
6. Events after the statement of financial
position date
There were no events after the balance sheet date that would have a material effect on the financial statements
for the year 2021. The ongoing military conflict in Ukraine and the related sanctions targeted against the Russian
Federation may have an impact on the European and global economy. The entity does not have any significant direct
exposure to Ukraine, Russia or Belarus. However, the impact on the general economic situation may require revisions
of certain assumptions and estimates. This may lead to material adjustments to the carrying value of certain assets
and liabilities within the next financial year. At this stage, management is not able to reliably estimate the impact as
events are unfolding day by day. The long-term impact may also affect trading volumes, cash flows, and profitability.
Nevertheless, at the date of these financial statements, the Organization continues to meet its obligations as they fall
due and therefore continues to apply the going concern basis of preparation.
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INDEPENDENT AUDITOR’S REPORT
to the founders and the Governing Board of Center of Excellence in Finance
Opinion
We have audited the financial statements of the organization Center of Excellence in Finance (hereinafter
‘the Organization’), which comprise the statement of financial position as at 31 December 2021, and the
statement of profit or loss, statement of other comprehensive income, statement of changes in equity and
cash flow statement for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Organization as at 31 December 2021, and its financial performance and cash flows for the
year then ended in accordance with International Financial Reporting Standards as adopted by the EU
(hereinafter ‘IFRS’).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Organization in accordance with the
International Code of Ethics for Professional Accountants (including International Independence Standards)
of the International Ethics Standards Board for Accountants (IESBA Code) and other ethical requirements
that are relevant to our audit of the financial statements in Slovenia, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Other information
Management is responsible for the other information. The other information comprises the information,
included in Annual report, other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we express no assurance
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, assess whether the other information is materially inconsistent with the financial
statements, legal requirements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If based on our work performed we conclude that other information include material
misstatement we need to report such circumstances.
7. Certified auditor’s report
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88
CEF FINANCIAL REPORT 2021
FINANCIAL STATEMENTS 89
In relation to this and based on our procedures performed, we report that:
Other information are, in all material respects, consistent with the financial statements;
Other information are prepared in compliance with applicable law or regulation; and
In relation Based
to this
on
and
our knowledge
based on our
and
procedures
understanding
performed,
of the Organization
we report that:
and its environment obtained in
the
Other
audit,
information
we did not
are,
identify
in all material
any material
respects,
misstatement
consistent
of
with
fact
the
related
financial
to the
statements;
other information.
Other information are prepared in compliance with applicable law or regulation; and
Responsibilities Based on of our Management knowledge and and Governing understanding Board of for the the Organization Financial Statements and its environment obtained in
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.
accordance with IFRS, and for such internal control as management determines is necessary to enable the
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
Management error. is responsible for the preparation and fair presentation of the financial statements in
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
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
error. concern basis of accounting unless management either intends to liquidate the Organization or to cease
In operations, preparing or the has financial no realistic statements alternative of the but Organization, to do so. management is responsible for assessing its
ability Governing to continue Board is as responsible a going concern, for overseeing disclosing the matters Organization’s related to financial going concern reporting and process using the and going for
concern approving basis audited of accounting annual report. unless management either intends to liquidate the Organization or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Governing Responsibilities Board is responsible for the for Audit overseeing of the Financial the Organization’s Statements financial reporting process and for
approving audited annual report.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
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 report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
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
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 report that in the
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
audit basis of conducted these financial accordance statements. with auditing rules will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
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
basis professional these scepticism financial statements. throughout the audit. We also:
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
professional fraud scepticism or error, design throughout and perform the audit. audit We procedures also: responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
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
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
internal evidence control. that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a misstatement resulting from fraud is higher than for one resulting from error, as fraud
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
procedures internal control. that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Organization's internal controls.
Obtain an understanding of internal control relevant to the audit in order to design audit
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
estimates opinion on and the related effectiveness disclosures of the made Organization's by management. internal controls.
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
and, estimates based and on related the audit disclosures evidence obtained, made by management.
whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Organization’s ability to continue as a
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
attention and, based in on our the auditor’s evidence report to obtained, the related whether disclosures a material in the uncertainty financial statements exists related or, if to such
events or conditions that may cast significant doubt on the Organization’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the organization to cease to continue as a going concern.
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
Evaluate evidence the obtained overall up presentation, to the date of structure our auditor’s and content report. of However, the financial future statements, events or conditions including the
disclosures, may cause the and organization whether the to financial cease to statements continue as represent a going concern. the underlying transactions and
events in a manner that achieves fair presentation.
Evaluate the overall presentation, structure and content of the financial statements, including the
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
the audit events and significant in a manner audit that findings, achieves including fair presentation. any significant deficiencies in internal control that we
identify during our audit.
We communicate with Governing Board regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
DELOITTE REVIZIJA d.o.o.
Yuri Sidorovich
Certified DELOITTE auditor REVIZIJA d.o.o.
Yuri Sidorovich
Ljubljana, Certified auditor 6 May 2022
Ljubljana, 6 May 2022

90 CEF BUSINESS REPORT 2021
91
In 2021, the CEF hosted two IMF FAD Regional Advisors: Ms. Suzanne Flynn,
covering public financial management (PFM), and Mr. Allan Jensen, covering
revenue administration (RA). Together with two other IMF colleagues, Mr. Bojan
Pogačar (PFM) and Mr. Dmitri Jegorov (RA), based at the Joint Vienna Institute
in Vienna, 1 they facilitate the implementation of an IMF project to support
capacity development (CD) in the areas of PFM and RA in Southeast Europe
(SEE). The recipient countries are Albania, Bosnia and Herzegovina, Kosovo,
Montenegro, North Macedonia, and Serbia.
This project is delivered with financial support from the European Union and
the Swiss State Secretariat for Economic Affairs (SECO). 2 A set of delivery milestones
are agreed on for each country in terms of reform progress in the areas
that are addressed by the project. The program’s delivery model involves IMF
Headquarters’ (HQ) led CD missions to the beneficiary countries; regular CD
visits by IMF Regional Advisors; CD support provided remotely; and a considerable
number of CD visits by short-term IMF experts. 3 The table below gives
a broad overview of the program focus areas, key activities, and preliminary
outcomes in 2021.
Despite the Covid-19 travel restrictions, the CD program progressed through
remote online missions, conducted successfully with the cooperation of the
authorities of each country. In addition, short regional webinars were held to
disseminate good practice in light of the pandemic and enable countries to
share their respective experiences. The annual project Steering Committee
meeting was held online in collaboration with the CEF.
The IMF advisors cooperate closely with the CEF on training needs assessments
in the areas of PFM and RA in SEE countries, and the design and delivery
of training and other input to some of the CEF’s learning activities. Coordination
meetings are held with CEF staff every quarter, involving HQ-based
IMF staff.
APPENDIX
IMF Advisors’ Report
1 Due to the COVID-19 situation, the two Vienna based advisers delivered remote CD support
from their home countries.
2 In 2020, SECO provided financial support to RA only; however, from January 2021 PFM was
also supported.
3 Most of the CD activities were delivered remotely using web-based communication tools and
e-mails.

92 CEF ANNUAL REPORT 2021
APPENDIX 93
IMF CAPACITY DEVELOPMENT SUPPORT TO SEE COUNTRIES IN 2021
PUBLIC FINANCIAL MANAGEMENT
CD Focus Areas CD Activities Examples of Outcomes
REVENUE ADMINISTRATION
CD Focus Areas CD Activities Examples of Outcomes
Stronger PFM laws and
Institutions, including
PFM reform strategies
Budget execution
and controls are
strengthened.
Appraisal, selection
and implementation of
public investment are
improved
Cash and debt
management are
strengthened and better
integrated
Strengthened
management of fiscal
risk, particularly in
light of the Covid-19
pandemic.
HQ missions (3)
Short-term experts (10)
Regional online training
course (1)
Ongoing remote support
from two Regional Advisors
and HQ staff
Covid-19Most of these
activities were delivered
remotely using web-based
communication tools
(Webex, Zoom)
The Covid-19 situation impacted reforms and day-today
operations across all ministries of finance in the
region. Despite this, various results where achieved
as highlighted below.
• New PFM reform strategies (2021–2025) have
been developed by the state institutions, the
Federation, Republika Srpska, Brčko District and
State level in Bosnia and Herzegovina. A first draft
of the comprehensive PFM Reform Strategy has
been completed and submitted for adoption to the
entities’ leadership.
• All countries are in the process of developing new
PFM strategies and have continued to hold PFM
dialogues remotely.
• All countries in the region had completed Public
Investment Management Assessments by the
end of 2021 and have started to implement the
recommendations.
• Albania is actively working to reduce the risk and
management of arrears and other fiscal risks.
• Serbia and Albania have set up and staffed
dedicated public investment management units
and capacity is being developed to enhance
investment outcomes.
• Other countries in the region (Albania, Kosovo,
Montenegro, North Macedonia, Serbia) have
improved or are improving their legal and
regulatory frameworks for public investment
management.
• Countries are incrementally improving the
disclosure of fiscal risks in fiscal strategy
documents and budget documents.
• Fiscal Risk units have been institutionalized
in Albania and Serbia, and capacity is further
enhanced in Kosovo.
• Analytical models and data flows to the ministries
of finance or economy are improving to enable
the monitoring of fiscal risks emanating from
public corporations across the region (e.g. Albania,
Bosnia and Herzegovina, Kosovo, Montenegro, and
Serbia).
Improving
governance,
organization
structures, and
Human Resource
Management (HRM).
Developing Medium-
Term Revenue
Strategies (MTRS).
Implementing
modern Compliance
Risk Management
(CRM) methodology,
including industrybased
compliance
strategies.
Strengthening tax
auditing
Consolidating core
tax functions in fewer
offices.
Strengthening tax
debt collection.
Strengthening
compliance
efforts for large
corporations.
Improving IT systems.
HQ missions (4)
Short-term
experts (37)
Regional
workshops (2)
Substantial
ongoing remote
support from
two Regional
Advisors.
Due to the
Covid-19
situation, all
activities were
delivered
remotely using
web-based
communication
tools (e.g.,
WebEx and
Zoom).
The Covid-19 situation has continued to impact significantly on reforms and
day-to-day operations across all tax administrations in the region. Despite
this, they were able to consolidate achievements in earlier years and
progress further. These are some highlights:
• Multiyear reform programs are in place in all tax administrations, and
governance and management approaches continue to improve. Both
Kosovo and Serbia have developed new corporate strategies.
• Major IT development projects are being implemented in Albania,
Kosovo, North Macedonia, Montenegro, and Serbia to replace or
upgrade outdated IT systems. In most places, these efforts include
putting in place “fiscalization systems” (real-time electronic reporting of
invoice and cash register data to the tax administrations).
• In many places it is now obligatory for taxpayers to file their tax
declarations electronically – and tax administrations deliver most of
their services to taxpayers electronically.
• Some tax administrations have consolidated their tax debt collection
functions in fewer offices, for example Albania – three Collection
Centers and the Large Taxpayer Office (down from 14 offices); Kosovo
– one Collection Center (down from 10 offices). Kosovo has also
consolidated the VAT refund function in one office. In Albania, the VAT
refund process is conducted through e-services.
• Modern compliance risk management methodology continues to be
phased in across all tax administrations. In addition to industry projects
(e.g. tourism, restaurants, and construction) some tax administrations are
also focusing on major risk clusters related to tax types (e.g. Albania and
Serbia – personal income tax for high-wealth individuals; Kosovo – VAT).
In Bosnia and Herzegovina, the Indirect Taxation Authority’s CRM system
now also covers customs, and a Customs Compliance Strategy is in place.
• Some tax administrations continue to invest in the development of
capacity in data analytics to enable better identification of major
compliance risk clusters (Albania and Serbia). This will enable them
to allocate resources where they are most useful in terms of tax gap
reduction chances.
• The Albanian tax administration is now operating the automatic
exchange system (OECD standards) for financial account information
to/from 72 foreign jurisdictions.
• In Bosnia and Herzegovina, a Rulebook on Indirect Audit Methods and
a Law on Origin of Assets (RSTA) have been adopted; an IT system
solution is in place for collecting invoice data for CRM purposes and
to improve the VAT revenue sharing mechanism; and the MoU on data
exchange between the four tax administrations has been revised.
• The tax audit and debt collection functions are gradually improving across
most administrations. In the BiH ITA, new audit manuals and a quality
assurance system is in place. In Kosovo, an Audit Improvement Strategy is
in place and several audit techniques guides have been developed.
• The use of key performance indicators as a management tool to
achieve higher organizational performance in key areas has begun
to take root in some administrations (e.g. Albania, Kosovo, North
Macedonia, and Montenegro).

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