2022 CEF Annual Report

2022
ANNUAL
REPORT
Supporting capacity development of
public officials and their institutions
in South East Europe through learning
and knowledge sharing

ACRONYMS
CHU
CIPFA
EC
EU
ERP
ESG
FISR
GIZ
IMF
IPA
IT
IPSAS
ODI
PACT
PFM
SDG
SEE
TIAPS
Central Harmonization Unit
Chartered Institute of Public Finance
and Accountancy
European Commission
European Union
Economic Reform Programme
Environmental, social and governance
Fiscal Implications of Structural Reforms
Deutsche Gesellschaft für Internationale
Zusammenarbeit
International Monetary Fund
Instrument for Pre-accession Assistance
Information Technology
International Public Sector Accounting
Standards
Overseas Development Institute
Public Accountants Certification Training
Public Financial Management
Sustainable Development Goal
South East Europe
Training of Internal Audit in the Public
Sector
2022
ANNUAL
REPORT
Supporting capacity development of
public officials and their institutions
in South East Europe through
learning and knowledge sharing
LJUBLJANA, JUNE 2023

CONTENTS
CONTENTS
ABOUT THE CEF................................................................................................. 7
CHAIR OF THE CEF GOVERNING BOARD’S WELCOME.....................................8
DIRECTOR’S WELCOME.....................................................................................9
BUSINESS REPORT....................................................11
CEF’s Focus and Value Added........................................................................ 12
Learning and Knowledge Sharing Program Highlights in 2022....................14
Knowledge Capturing, Packaging and Sharing..............................................24
List of Learning and Knowledge Sharing Activities in 2022........................ 36
Governance and Culture................................................................................. 40
Partnerships.................................................................................................... 48
Communication............................................................................................... 52
Monitoring and Evaluation............................................................................. 54
SUSTAINABILITY OVERVIEW............................................................................ 58
FINANCIAL REPORT................................................... 61
APPENDIX: IMF FAD Advisors’ Report 92...................................................... 92

6 CEF ANNUAL REPORT 2022 CEF ANNUAL REPORT 2022
7
OUR VISION
As leaders in learning, our vision is to inspire
public officials, both individuals and teams,
to shape institutional governance that drives
successful economies and fair societies.
OUR MISSION
We support capacity development of public
officials and their institutions in South East
Europe through learning and knowledge
sharing.
OUR WORK
We are a leader in applying people-centered
learning approaches and holding the knowhow
of becoming and being a learning organization.
We combine topical expertise in the
fields of public financial management, central
banking, leadership for managing reforms
and learning and knowledge ecosystems. We
do this through innovative, participatory, and
practical learning solutions. Our staff knows
how to nurture and deepen learning among
individuals, teams and institutions.
OUR HISTORY
The CEF is an international organization based
in Ljubljana, Slovenia. 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. In 2015, following 14 successful
years as a regional institution, we transitioned
into an international organization.
ABOUT THE CEF

8 CEF ANNUAL REPORT 2022 CEF ANNUAL REPORT 2022
9
CHAIR OF THE CEF GOVERNING
BOARD’S WELCOME
DIRECTOR’S WELCOME
Dear readers,
Dear colleagues, partners and friends,
It is with great pleasure and a sense of accomplishment
that I present to you the CEF’s journey in 2022. In the
following pages, you will find a comprehensive overview
of all the achievements, challenges and milestones in
the past year. This report constitutes a testament to the
hard work and dedication of the CEF team, as well as
the continued support of all stakeholders. As we reflect
on our progress, the CEF remains dedicated to share its
story and demonstrate its commitment to transparency
and excellence.
The past year marked the end of the Covid-19 pandemic
and unfortunately witnessed Russia’s brutal invasion
of Ukraine. This tragic war has caused huge losses of
human lives, mutilations and long-term social and economic
consequences. Albania has stood side by side
with the EU and other progressive forces in condemning
the Russian aggression.
For Albania, however, the year 2022 constitutes a strategic
achievement in its efforts to join the European Union.
The first intergovernmental conferences opening the accession
negotiations with Albania and North Macedonia
took place in July 2022. This significant accomplishment
marks a new page in our EU accession process. We are
proud to state that Albania is already a confident partner
of the EU in the Stabilization and Association Process for
the Western Balkans. As stated by the European Council
on December 14, 2021, the EU delegation welcomed
Albania’s continued determination to advance the EU reform
agenda, and deliver tangible and sustained results.
To this end, the support and partnership of our donors
have been a key factor in boosting our efforts towards
the EU accession. In this view, the CEF has played an
important role in the capacity building of public administration
through learning and knowledge sharing. This
partnership has turned to be crucial for development
and integration.
In 2022, the CEF succeeded in delivering its objectives.
The CEF supported and gave guidance to 2,366 participants
from the region, turning its learning events into
valuable learning experiences. Furthermore, the CEF
completed its project on Strengthening Line Ministries’
Capacities to Assess Fiscal Implications of Structural
Reforms, which included more than 90 learning initiatives
and events, bringing together 1,500 people from
the Western Balkans and Türkiye involved in the process
of Economic Reform Programmes.
These results were achieved due to the hard work and
dedication of the CEF staff, donors and partners. We are
privileged to be part of this community, which supports
every day the countries of the region in reaching their
objectives in the European integration process.
Now that Albania’s mandate of chairing the CEF Governing
Board comes to an end and Moldova will take over,
many challenges still lie ahead. We should continue our
work in promoting the values of learning in order to have
stronger institutions capable of dealing with various
challenges and objectives.
I would like to wish Governor of the National Bank of
Moldova a successful chairing, and to the CEF and all
its members and partners many accomplishments in
achieving our common goals in the upcoming year.
Gent Sejko
Governor of the Bank of Albania
I am pleased to present you with the CEF Annual Report
for 2022, highlighting our progress toward our vision to
inspire public officials, both individuals and teams, in
shaping institutional governance that drives successful
economies and fair societies.
We are proud to have successfully completed the Strengthening
Line Ministries’ Capacities to Assess Fiscal Implications
of Structural Reforms (FISR) project after three years
and some months. The project included over 90 learning
activities that connected more than 1,500 people from the
Western Balkans and Türkiye, involved in the drafting of
the Economic Reform Programmes (ERP). Our new Structural
Reforms Better Integrated Within Fiscal Frameworks
(FISR 2) project, also funded by the European Union, will
continue to address the challenges around structural reforms
in the region for the next four years.
In line with our strategic objectives and value added, we
have redefined four thematic areas of impact: Public Financial
Management, Central Banking, Leadership for
Managing Reforms, and Learning and Knowledge Ecosystems.
The events covering the thematic area of Leadership
for Managing Reforms have doubled the number
of participants compared to 2021, indicating a clear
need for this knowledge in the region.
To efficiently address changes in our internal and external
environment, we scaled up our focus on team dynamics
and organizational development. We sharpened communication
skills and improved as facilitators of progressive
learning. This empowered us to offer high-quality learning
experiences to our participants, and support them, their
teams and institutions in reaching their potential. To this
end, we also published our methodology on how public
institutions can become learning organizations.
We were able to achieve all this thanks to the outstanding
support of many individuals, teams and institutions
who share our vision: Governing Board and Advisory
Board members, CEF Coordinators, donors and partners,
and affiliated international and regional experts.
Your expertise, guidance and support shaped our program
into a valuable learning experience for 2,366 participants
of various learning events. It also enabled us to
enrich the CEF learning program by publishing 11 knowledge
products. Your dedication and contribution made
it possible to expand our work, providing more growth
opportunities for participants. We are privileged to have
such an incredible and wide community supporting us,
and we look forward to working together also in the future
to achieve our shared objectives.
We’re pleased to see that the EU’s relationship with the
region remains a top priority, despite many challenges.
Europe is grappling with complex issues such as war, energy
and consumer price inflation, and the need to lead
the green and digital transitions. That is why it is important
to attract talented individuals to public institutions
to address these challenges. The goal is to create a just
and inclusive society where everyone has equal opportunities
to succeed. Capacity development is crucial for
such progress.
Through our work, we witness the vast variety of the region’s
cultures as well as countless examples of shared
values. We remain committed to innovating and adapting
our program to meet the learning needs of the region, and
to unite public officials in our journey of regional knowledge
sharing and professional development, as we are
convinced of our common future in united Europe.
Jana Repanšek
Director

BUSINESS
REPORT

12 CEF ANNUAL REPORT 2022
CEF’S FOCUS AND VALUE ADDED 13
CEF’S FOCUS
AND VALUE ADDED
Over the years, the CEF has transformed into a learning organization and has
developed its own methodology of six building blocks to foster growth and performance
through: knowledge capturing, packaging and sharing; governance and
culture; partnerships; communication; monitoring and evaluation; and funds for
learning and knowledge sharing. We used this methodology also to present our
2022 accomplishments throughout this annual report.
By practicing the principles of a learning organization, we have strengthened our
competencies, which has helped us grow as an organization and increase the
impact of our activities.
We continuously monitor the strategic priorities of our focus institutions, while
also examining the challenges and opportunities for South East Europe (SEE). Our
focus has expanded to promoting continuous professional development through
learning and knowledge sharing at the individual, team and institutional levels.
With our people-centered learning approach, we empower public officials to be
leaders of change and develop new approaches to engage with other institutions,
civil society, academic, and business environments.
FUNDS FOR
LEARNING AND
KNOWLEDGE
SHARING
COMMUNICATION
ABOUT LEARNING
GOVERNANCE
AND CULTURE
MONITORING
AND
EVALUATION
KNOWLEDGE
CAPTURING,
PACKAGING AND
SHARING
PARTNERSHIPS

14 CEF ANNUAL REPORT 2022
LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN 2022 15
LEARNING AND
KNOWLEDGE SHARING
PROGRAM HIGHLIGHTS
IN 2022
105
LEARNING & KNOWLEDGE
SHARING ACTIVITIES
61+33
REGIONAL BENEFICIARY-
SPECIFIC
LEARNING & KNOWLEDGE
SHARING EVENTS*
We delivered more events than in 2021, however,
the number of participants was lower.
This can be attributed to a higher proportion
of face-to-face events compared to the last
two years. From 2020–2021, the Covid-19
pandemic necessitated a shift towards more
online events, resulting in generally higher
levels of participation.
11
KNOWLEDGE PRODUCTS
2,366
PARTICIPANTS
4,087
PARTICIPANT LEARNING DAYS
218
LECTURING EXPERTS
* The numbers do not include knowledge products

16 CEF ANNUAL REPORT 2022
LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN 2022 17
PARTICIPANTS
LEARNING SPACES
AND FORMATS
Country Participants Learning days Participation costs (EUR)
Albania 215 357.25 43,850
We offer learning and knowledge sharing activities in the classroom (faceto-face),
online, or combined. They are performed through a diverse set of
formats: blended/hybrid learning, certification module, conference, knowledge
product, meeting, online course, on-the-job training, study visit,
visibility action, webinar, workshop.
Bosnia and Herzegovina 253 440.25 13,350
Bulgaria 53 90.50 8,800
Croatia 64 115.50 17,850
Kosovo 198 324.50 35,300
Moldova 113 152.25 10,350
Montenegro 115 192.50 13,950
North Macedonia 398 878.50 31,350
Romania 72 109.25 8,050
47 39 8
FACE-TO-FACE ONLINE BLENDED & HYBRID
Serbia 191 315.00 10,650
Slovenia 126 130.50 0,000
Türkiye 294 424.25 4,200
CEF constituency 2,092 3,530.25 197,700
Other countries* 274 556.75 72,850
TOTAL 2,366 4,087.00 270,550
Participation costs (travel and accommodation) for in-person events were either financed through
project funding or by a sponsoring institution (employer or 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. Numbers are rounded.
OTHER COUNTRIES: Armenia, Austria, Azerbaijan, Belgium, Bolivia, Congo, Czech Republic,
Egypt, Estonia, Ethiopia, France, Georgia, Ghana, Greece, Hungary, India, Israel, Italy, Jordan,
Kazakhstan, Kyrgyz Republic, Latvia, Lebanon, Lesotho, Lithuania, Luxembourg, Malawi, Malta,
Mauritius, Mongolia, Namibia, the Netherlands, Nigeria, Paraguay, Philippines, Poland, Russian
Federation, Slovakia, South Africa, Sri Lanka, Tunisia, Uganda, Ukraine, United Arab Emirates,
and the United Kingdom.

18 CEF ANNUAL REPORT 2022
LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN 2022 19
PROJECTS
DONORS
PROJECTS / DURATION
Fiscal Implications of Structural Reforms (FISR) /
2019–2022
Structural Reforms Better Integrated within Fiscal
Frameworks (FISR 2) / 2022–2026
Public Accountants Certification Training at diploma
level, North Macedonia (PACT MKD (L2)) / 2022–2024
Efficient Public Sector Asset Management (EPSAM) /
2022–2024
Strengthening Domestic Revenue Mobilization for
Sustainable Development (DRM) / 2022–2024
The learning
and knowledge
sharing activities
were part of
eight capacity
development
projects,
supported by
six donors.
Public Accountants Certification Training at diploma
level, North Macedonia (PACT MKD, L2) / 2022–2024
Tax Policy and Administration (TPA) / 2022
Public Internal Financial Control (PIFC) / 2022
Strengthening Capacities in Providing Sound, Resilient
and Developed Macroeconomic and Financial
Environment (MFE) / 2022
Ministry of Finance of Slovenia provides core funding
to the CEF. This funding provides us with resources to
develop our institutional capacity, new projects and
complementary funding of several projects (partially)
funded by donors.

20 CEF ANNUAL REPORT 2022
LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN 2022 21
THE FISR PROJECTS
THE END OF ONE JOURNEY AND THE START OF A NEW ONE
We successfully concluded the FISR project, which enhanced line ministries’ capacity to
assess the fiscal implications of structural reforms. The three-year project included the
following learning areas: costing, budgeting, enabling environments, transparency, quality of
documents. We established a network of regional experts with 34 members from the region,
including 20 from line ministries, and created a repository of webinars in our Online Learning
Campus and our YouTube channel.
150+
learning days
3,000+
participations
by 1,500+ individuals
400+
experts lecturing
at FISR learning events
FISR PROJECT OVERVIEW
DURATION
2019–2022
20+ 20+ 20+
value creation stories
collected
knowledge products
(including videos)
digital stories
THE FISR PROJECT STRENGTHENED
FISR 2 PROJECT OVERVIEW
ANALYTICAL AND COSTING
CAPACITIES
of line ministries to improve
their ability to comprehensively
assess the fiscal implications of
structural reforms.
INTER-INSTITUTIONAL
COORDINATION
within respective line ministries, as
well as between the line ministries
and the ministry of finance for
successful reform implementation.
CROSS-NATIONAL
COOPERATION
and exchange of good practices
among public officials across
the region.
In June 2022, we started the four-year multi-beneficiary capacity development project Structural
Reforms Better Integrated Within Fiscal Frameworks (FISR 2), funded by the EU. The project
aims to strengthen the integration of structural reforms within fiscal frameworks in ERPs for
Western Balkans and Türkiye.
DURATION
2022–2026
HIGHLIGHTS
2022 DELIVERABLES
50+
40+
6+
725 14 17 1
local trainings
delivered online or in classroom
regional peer-to-peer trainings
delivered online or in classroom
regional policy dialogues +
annual ERP launch meetings
participants
regional peer-topeer
trainings
local trainings
knowledge product: Economic Reform
Programme (ERP) at a Glance

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LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN 2022 23
VISUAL SUMMARY CREATED AT THE REGIONAL POLICY DIALOGUE NEW THINKING ON ECONOMIC GROWTH

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KNOWLEDGE CAPTURING, PACKAGING AND SHARING 25
KNOWLEDGE
CAPTURING, PACKAGING
AND SHARING
To provide a highquality
learning
experience for
public officials
in SEE, we
focus on four
thematic areas:
Public Financial
Management,
Central Banking,
Leadership
for Managing
Reforms, and
Learning and
Knowledge
Ecosystems.
The first two areas address the core functions of relevant public institutions, while Leadership for
Managing Reforms covers competencies for policy making and coordination. It is also embedded in
our Public Financial Management and Central Banking topics or offered as stand-alone activities. Our
specific know-how in Learning and Knowledge Ecosystems is integrated across our entire program to
help learners become learning organizations and adopt our approaches.
THE 2022 LEARNING AND KNOWLEDGE SHARING PROGRAM INCLUDED LEARNING EVENTS,
NETWORKING ACTIVITIES AND KNOWLEDGE PRODUCTS ON THE FOLLOWING TOPICS
ACCOUNTING
AND FINANCIAL
REPORTING
AUDITING
DATA AND
ANALYSIS
FINANCIAL
STABILITY AND
PRUDENTIAL
SUPERVISION
FISCAL POLICY
MAKING
LEADERSHIP
FOR MANAGING
REFORMS
LEARNING AND
KNOWLEDGE
ECOSYSTEM
MONETARY
POLICY MAKING
AND FINANCIAL
MARKETS
SECTORAL
POLICY
MAKING
TAX AND
REVENUE
COLLECTION
CEF
GOVERNANCE
AND OUTREACH

26 CEF ANNUAL REPORT 2022
KNOWLEDGE CAPTURING, PACKAGING AND SHARING 27
THE ROLE OF ACCOUNTING AND FINANCIAL REPORTING
IN PROMOTING PUBLIC SECTOR TRANSPARENCY
ADOPTING NEW APPROACHES AND TOOLS IN
PUBLIC SECTOR AUDITING
In 2022, our efforts resulted in significant progress towards strengthening
the roles of public sector accountants in the preparation and delivery of the
accounting reforms, their cooperation with other stakeholders in implementing
public sector reforms, and better public asset management.
In 2022, we focused on achieving results through strengthening support for
Central Harmonization Units (CHU) and promoting good governance in public
sector institutions. We placed particular emphasis on the implementation of
risk management, and budget reforms and their managerial implications.
Under the PACT program, I had
the opportunity to establish
both professional and friendly
relations with a large network
of inspiring, creative, and dedicated
professionals, with whom
I hope to continue successful
and profound cooperation in
the future.
SASHA SASHEK GOSHEVA
Director of Sector for Financial
Affairs at the Customs
Administration,
North Macedonia
We started the three-year Efficient Public Sector Asset Management (EPSAM)
program to improve awareness and knowledge of public asset management.
We mapped out relevant stakeholders among public officials and institutions
working on public sector asset management in SEE, establishing an understanding
of the relationship between an asset registry and accounting for
assets.
We continued to partner with Chartered Institute of Public Finance and
Accountancy (CIPFA), providing support for the professional development of
public accountants in North Macedonia. We launched the Public Accountants
Certification Training (PACT) on level two or diploma level, alongside the
development of a group of local mentors to support the training. At present,
we are working towards a sustainable uptake of the PACT program by local
institutions.
In addition, we inspired accountants from central banks to improve their financial
planning and control functions. Our efforts aimed to increase financial
accountability and transparency. We also facilitated the exchange of
knowledge on how to comply with external financial reporting requirements.
Our work with CHUs explored their role in public financial management
reforms and addressed institutional and individual capacities. We inspired
reflection and knowledge sharing on the position and structure of CHUs, their
roles, and cooperation with stakeholders. These efforts yielded valuable new
insights, and examples of good practices presented by countries will serve
as a basis for updating the existing risk management guidelines. This will
enable CHUs to play a more visible and effective role in PFM reforms.
We also supported good governance of public sector institutions by
promoting the use of risk management to manage uncertainties, including in
structural reforms. The focus was on practical implementation, and tools and
approaches for managing risks.
We witnessed several positive developments in public sector auditing. Many
auditors are adopting new approaches and tools, with IT auditing becoming
one of the most important types of auditing. Our online course was designed
to encourage internal auditors to be more prudent in assessing IT risks and
confident in trying out (new) IT audit tools.
For instance, in the IT Auditing:
Practical Guidance online
course we discussed recommendations
on how to use IT auditing
methodologies and controls,
and how to select the right
questions during the design of
questionnaires for auditing. I am
not an auditor but I have been
audited many times, and this
course made me better understand
the importance of performing
audits and how it can
help an organization improve
the security of information and
reduce the related risks.
SEDAT SHEHU
Manager of the IT
Infrastructure Division at the
Ministry of Finance, Labor and
Transfers, Kosovo

28 CEF ANNUAL REPORT 2022
KNOWLEDGE CAPTURING, PACKAGING AND SHARING 29
My learning experience was rich, challenging, and
very engaging. The course was well structured and
gave a comprehensive and in-depth overview of the
covered topics, including also hands-on exercises
and follow-up discussions. Moreover, the course
provided insights into new developments in the
estimation of non-linear macroeconomic models,
especially taking into account the zero lower bound
and occasionally binding constraints. The course
helped me acquire technical skills not only to design
but also solve and estimate non-linear effects
in DSGE models.
KNARIK AYVAZYAN
Economist (Macroeconomics) at IMF, Monetary
and Capital Markets Department (MCM)
ENHANCING DATA AND ANALYSIS
CAPACITIES TO EMPOWER DECISION
MAKING
In addressing the data compilation and analysis, we
looked for recommendations and solutions in areas
such as revenue data analysis and macroeconomic
modeling. We integrated them into the program to support
the learning process of practitioners from various
institutions, including central banks and tax administrations.
We thus helped raise awareness of the critical
role of high-quality data, especially for departments
dealing with analytics, modeling and forecasting.
In 2022, we continued to offer learning opportunities
related to informed decision making, especially for the
ministries of finance and line ministries. We recognized
that ministries needed to develop their internal capacities
in the area of impact assessment and set key performance
indicators to efficiently plan and implement
numerous structural reforms. To advance these objectives,
we designed learning initiatives focused on developing
capacities in these areas, sharing good practices
and experiences, and creating knowledge products
on monitoring and implementing structural reforms
through data and analysis points of view.
IMPROVING FISCAL POLICY MAKING
A large part of our efforts related to fiscal policy making is focused on strengthening the tools and
procedures that support revenue collection and government expenditure and provide insights
into budget management tools.
In 2022, we collaborated with the IMF Fiscal Affairs Department (FAD) to improve cash and debt
management functions through a regional online course. We put special emphasis on enhancing
the coordination of cash and debt management units and strengthening forecasting for finance
and central bank officials.
We completed the FISR project. As a result, we improved beneficiaries’ ability to estimate the
costs of the structural reform measures that were included in the ERPs. We also increased awareness
of good practices, and created an online library that includes a wealth of learning resources.
We launched a follow-up project, FISR 2, aimed at strengthening the integration of structural
reforms into the fiscal frameworks of six countries of Western Balkans and Türkiye. Over the next
four years, we will support those countries in tackling challenges in the ERP preparation process.
We do this by promoting learning from already existing practices and facilitating discussions between
ERP coordination teams and the European Commission (EC), for example about amendments
to the ERP Guidance.
To help the ERP working groups establish well-integrated planning and budgeting of public expenditures
for the 2023–2025 ERPs, we delivered seven beneficiary-specific events, where structural
reform costs and funding sources were aligned with methodological requests. We published
an instructional leaflet Economic Reform Programme (ERP) at a Glance to meet the demand for
inter-governmental policy coordination.

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KNOWLEDGE CAPTURING, PACKAGING AND SHARING 31
What proved to be a challenge
was the identification of key performance
indicators and the impact
assessment of the reform
measures. So, we think that
FISR 2 is just tailor-made to answer
these needs. The interactive
and participatory learning
activities, which include not only
the design of structural reforms
and monitoring their implementation
but also strategic planning
and budgeting systems,
coordination, and collaboration
among institutions, provides for
expertise that helps us address
the challenges that we face in
the ERP process.
VESNA CVETANOVA
Head of the Macroeconomic
Policy Department at the
Ministry of Finance,
North Macedonia
SUPPORTING FISCAL STABILITY AND
SUCCESSFUL SECTORAL POLICY MAKING
With our program, we strengthened line ministries’ capacities
to articulate and analyze sector-specific policies and
integrate them into budgetary planning frameworks, with
a particular focus on structural reforms. Our efforts also
aimed to improve coordination and strengthen relationships
between line ministries, ministries of finance, and
other central government planning bodies.
We reviewed how to manage uncertainty related to structural
reforms to increase fiscal stability and the likelihood
of successful implementation of sectoral policies. We promoted
structured discussions on sector-specific policies
and strategies to better align them with key structural
reforms and improve the overall strategic planning and
budgeting systems.
We organized several meetings of the Network of Regional
Experts for Structural Reforms to exchange ideas and
practices that supported policy planning and coordination
processes.
STRENGTHENING KNOWLEDGE SHARING IN
FINANCIAL STABILITY AND PRUDENTIAL SUPERVISION
To promote our beneficiary institutions, we continued to engage their experts
to present and share their knowledge. Their participation increased in almost
all central banking learning activities in 2022. We also delivered a Training of
Trainers program at the National Bank of the Republic of North Macedonia to
empower their experts in financial stability and prudential supervision as well
as some other central banking areas. It was designed to provide them with
the necessary skills to better prepare and deliver presentations and share
knowledge. The purpose was also to identify and train experts for future
knowledge sharing activities.
We also helped establish a regional knowledge sharing community of senior
banking regulators and supervisors. The members agreed to meet semiannually,
focusing on a set of thematic fields.
In the area of strengthening financial stability, we focused on stress testing,
practically from scenario building to the interpretation of results. Participants
investigated different types of risks that can be identified by means of stress
testing, and learned to assess the capacities of banks to withstand shocks.
At the On-site Banking Supervision workshop, we supplemented case studies
with sessions on essential skills for better work performance, such as presenting
findings, arguing results, and delivering negative news.

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KNOWLEDGE CAPTURING, PACKAGING AND SHARING 33
EXPLORING GOOD PRACTICES IN
MONETARY POLICY MAKING AND
FINANCIAL MARKETS
One of our outstanding events in 2022 was the Government
Cash Management workshop, where we invited treasurers of
ministries of finance and central bankers to exchange good
practices on treasury single accounts and other solutions
for structuring government bank assets. It was highlighted
how coordination between the two authorities contributes
to good management of government bank assets’ balances
and forecasting, which is important for both institutions in
performing their mandates.
In the area of payment and settlement systems, we explored
the existing European systems (TARGET2, T2S, TIPS) and
devoted special attention to the recent developments that
gave a boost to payment innovations, financial technologies
and other newer forms of payment services. We also learned
how opportunities in innovations represent potential threats
that regulators need to address. We discussed payment
innovation and financial inclusion topics with ministries
of finance, central banks and other agencies involved in
promoting financial inclusion and literacy.
INNOVATIVE METHODS IN
LEADERSHIP FOR MANAGING REFORMS
We implemented new approaches in the thematic area of Leadership for
Managing Reforms, including successful team planning events, coaching and
inspiring leadership, which was well received by the participants.
We supported ERP teams in Albania, Bosnia and Herzegovina, North Macedonia
and Türkiye with the Team Planning for the ERP workshop – an experiential
event intended to engage the key participants in the ERP process early on,
in the planning phase. These pilot events with selected ERP teams proved as
very effective. For the majority of participants they had a positive impact on
the quality of the ERP process in 2022 and increased clarity in their role in the
process. They found the events motivational, action-oriented, and eye-opening.
The event focusing on ERP and Instrument for Pre-accession Assistance (IPA)
Coordinators supported public officials in becoming confident and networked
leaders, linking policy measures of the ERP with IPA III and collaboration
models to increase efficiency in coordination. Participants in the Policy Drafting
and Negotiations workshop improved their skills in writing structural reform
measures in the ERP document and developed negotiation skills for unified
institutional positions. The webinar How to Put Your ERP into an Infographic
showcased how ERPs could be made visually informative and more easily
understandable by using non-technical language.

34 CEF ANNUAL REPORT 2022
KNOWLEDGE CAPTURING, PACKAGING AND SHARING 35
STRENGTHENING
LEARNING AND KNOWLEDGE ECOSYSTEMS
Our strategic focus is to support institutions become learning
organizations, which is why we have mobilized more
resources for providing learning opportunities to support
these endeavors. The expressed regional interest in learning
methodologies, knowledge management and the concept
of learning organizations gave us the confidence to stream
these efforts through a new thematic area and topic – Learning
and Knowledge Ecosystems. It is embedded across our
entire program, helping learners to understand and adopt
the CEF’s learning and knowledge sharing approaches, and
institutions to become learning organizations.
In 2022, we addressed how to support public institutions to
deliver on their mandate at a conference for the CEF Governing
Board members and Coordinators. We engaged with the
CEF Coordinators also through training of trainers on knowledge
management in public institutions. In addition, we published
our own methodology on how public institutions can
become learning organizations and facilitated several related
discussions with senior officials.
Learning opportunities were people-focused, knowledge-centered
and innovative, dealing with learning methodologies in
physical and online environments and the importance of systematic
institutional capacity development.
BUILDING TRUST AND SKILLS IN
TAX ADMINISTRATIONS
We mapped out best practices for effective knowledge
sharing in tax administrations, emphasizing the mental
model change necessary for positive impacts on employees.
We explored how a trusting relationship between
tax administrations and taxpayers can tackle the challenge
of a growing tax debt in spite of improvements in
tax collection. Our discussions focused on building both,
external and internal trust resulting from good internal
culture. One such example was the workshop on Improving
Tax Debt Management in Kosovo, organized together
with the Tax Administration of Kosovo and and hosted by
Kosovo’s Prime Minister and Minister of Finance.
Our learning program also covered learning about digital
tools that contribute to more effective detection and
prevention of tax fraud, as well as exploring how to plan
and conduct tax audits by using indirect audit methods.
With the event Needs for Quality Data Analysis in Domestic
Revenue Mobilization we kicked-off a three-year
project Domestic Revenue Mobilization (DRM) highlighting
the importance of DRM in achieving the Sustainable
Development Goals (SDGs). Participants learned about
the importance of international data exchange, how to
make sense of abundance of data and how to transition
to evidence-based policymaking.
Some countries have really good legal regulations
on indirect tax methods and some of them don’t,
including the Federation of Bosnia and Herzegovina.
I think that the information on good practices
gained at this event will contribute to a better understanding
of the importance of indirect methods,
which I shared also with my colleagues. Although
we use some of the indirect methods in our work,
as far as our legislation allows, it is necessary to
expand it and the experience I gained at this event
can contribute to that.
IRNESA HAŠIMBEGOVIĆ
Tax Administration of the Federation of Bosnia and
Herzegovina
ASSURING GOOD
GOVERNANCE OF THE CEF
AND OUTREACH
Through many formal and informal meetings and networking
we nurtured partnerships with our network of
partners and embassies of their respective countries in
Slovenia.
We held regular meetings of the Governing and the Advisory
Boards and with the CEF Coordinators. You can find
more information in the Governance and Culture chapter
of this Annual Report.

36 CEF ANNUAL REPORT 2022
LIST OF LEARNING AND KNOWLEDGE SHARING ACTIVITIES IN 2022 37
LIST OF LEARNING AND
KNOWLEDGE SHARING
ACTIVITIES IN 2022
TITLE*
An Experiential Laboratory on Sound, Learning and Change
CEF Tax Coordinators’ Meeting: Developing Knowledge Sharing Culture
Auditing Central Bank Governance
New Year Gathering for CEF Partners and Friends
Towards Integrating Structural Reforms and Fiscal Framework in Bosnia
and Herzegovina - Extension
Meeting with CEF Coordinators at Central Banks
Integration of Structural Reforms and Fiscal Frameworks
Payment Innovations and Financial Inclusion
Macroeconomic Modeling for Open Economies 2
Cyber Security Risk Supervision
Facilitation (poster)
Cash Management: Improving Planning and Use of Public Resources
PACT MKD (L2): Training of Trainers on Audit and Assurance
Everything You Always Wanted to Know About Structural Reforms
From Feedback to Feed Forward (poster)
Tax Fraud in Digital Environment
Regional Networking for Structural Reforms
Knowledge Sharing: National Bank of the Republic of North Macedonia
and National Bank of Moldova
Integrating Structural Reforms into Budgets
Anti-Money Laundering
PACT MKD3 (L2): Opening Ceremony
PACT MKD (L2): Training of Trainers on Teaching Methodology
Fiscal Implications of Structural Reforms Project in a Nutshell
How Online Learning and Knowledge Sharing Work at CEF
Monitoring the Implementation of Structural Reforms - Theory and Practice
Risk Management Beyond Theory
Knowledge Sharing: National Bank of the Republic of North Macedonia
and Sveriges Riksbank
ReSPA Working Groups - Study Visit to CEF
Government Cash Management: Coordination of Treasury and Central Bank
Strengthening Tax Auditors’ Capability: Indirect Audit Methods
Training of Trainers for the National Bank of North Macedonia
How Public Institutions Can Become Learning Organizations
Online Meeting of the CEF Advisory Board
Knowledge Sharing: National Bank of the Republic of North Macedonia
and National Bank of Belgium
LEARNING FORMAT
Workshop
Online meeting
Webinar
Partners’ meeting
Blended learning
Online meeting
Knowledge product
Webinar
Online workshop
Online workshop
Knowledge product
Online workshop
Online workshop
Knowledge product
Knowledge product
Online workshop
Workshop
Meeting
Hybrid event in Istanbul, Türkiye
Online workshop
Project opening in Skopje,
North Macedonia
Blended learning in Skopje,
North Macedonia
Knowledge product
Knowledge product
Knowledge product
Workshop
Meeting
Study visit
Hybrid workshop
Workshop
Workshop in Skopje,
North Macedonia
Knowledge product
Online meeting
Online meeting
* Sorted in chronological order of delivery dates.

38 CEF ANNUAL REPORT 2022
LIST OF LEARNING AND KNOWLEDGE SHARING ACTIVITIES IN 2022 39
TITLE*
LEARNING FORMAT
TITLE*
LEARNING FORMAT
Training of Trainers: Learning Methodologies and Tools
Banking Regulation and Supervision – Coordination Meeting
Public Sector Asset Management and EU Integration
How to Write a Reflective Learning Blog
Update on Auditing Risk Management
Tips and Tricks on Doing Risk Management
Impact Assessment of Structural Reforms for Policy Experts
Central Bank Liquidity Forecasting
Building Trust in Tax Administrations
Knowledge Sharing: Albanian School of Public Administration,
Human Resources Management Authority of Montenegro and the CEF
Knowledge Sharing within the Network of Regional Experts
Annual Meeting of the CEF Governing Board
CEF Forum 2022: Strong Institutions Deliver on Their Mandate
CEF Forum 2022: Training of Trainers: Knowledge Management
in Public Institutions
Launch of the ERP 2023–2025
Advancing the Digitalization of the ERP Preparation Process
Institutional Capacity Development for Better Reform Programs: Albania
Making Government Services Work Better for Citizens
Team Planning for the ERP: Bosnia and Herzegovina
Team Planning for the ERP: Türkiye
Team Planning for the ERP: North Macedonia
Team Planning for the ERP: Albania
IT Auditing: Practical Guidance
PACT MKD (L2): Training of Trainers on Public Sector Financial Reporting
Management of EU Funds
CEF Tax Coordinators’ Meeting: Developing Knowledge Sharing Culture
On-Site Banking Supervision
Monetary Policy Implementation in the Eurosystem
Training of Trainers: Online Learning Methodologies and Tools
ERP and IPA Coordinators as Inspired Leaders
Policy Drafting and Negotiation
Accounting and Financial Reporting in Central Banks
PACT MKD (L2): Audit and Assurance
Financial Management and Control: Connectivity with Budget Systems
Workshop in Skopje,
North Macedonia
Online meeting
Webinar
Webinar
Webinar
Knowledge product
Workshop
Webinar
Workshop
Online meeting
Online meeting
Meeting
Conference
Blended learning
Online workshop
Knowledge product
Meetings in Tirana, Albania
Hybrid event in Tirana, Albania
Workshop in Sarajevo,
Bosnia and Herzegovina
Workshop in Ankara, Türkiye
Workshop n Skopje,
North Macedonia
Workshop in Tirana, Albania
Workshop
Meetings in Skopje,
North Macedonia
Study visit of the Serbian
delegation to Slovenia
Online meeting
Hybrid event
Webinar
Online workshop
Workshop at Bled, Slovenia
Hybrid event
Workshop
Workshop
Online workshop
19th Meeting of the CEF Governing Board
Programming Structural Reforms for the ERP 2023–2025: Serbia
Public Institutions as Learning Organizations
Annual Meeting of the CEF Advisory Board
Training of Trainers: Knowledge Sharing and Presentation Skills
Institutional Capacity Development for Better Reform Programs:
North Macedonia
BRS Knowledge Sharing Session
Key Performance Indicators for Structural Reforms
Strategic Use of Structural Reforms
How to Put Your ERP into an Infographic
Programming Structural Reforms for the ERP 2023-2025: Albania
Programming Structural Reforms for the ERP 2023–2025: North Macedonia
Improving Tax Debt Management
Programming Structural Reforms for the ERP 2023-2025: Bosnia and
Herzegovina
Exchange of Good Practices in KPIs
The Role of Central Harmonization Units in PFM Reforms
Programming Structural Reforms for the ERP 2023–2025: Kosovo*
Institutional Capacity Development for Better Reform Programs: Türkiye
Institutional Capacity Development for Better Reform Programs: Montenegro
Data Analysis in Domestic Revenue Mobilization
Payment and Settlement Systems
Programming Structural Reforms for the ERP 2023–2025: Türkiye
PACT MKD (L2): Training of Trainers on Financial Management
Recording Fixed Assets in Registries and Capturing Them in Financial Reports
Institutional Capacity Development for Better Reform Programs:
Bosnia and Herzegovina
Knowledge Sharing within the Network of Regional Experts
PACT MKD (L2): Public Sector Financial Reporting
PACT MKD (L2): Training of Trainers on Business and Change Management
Financial Stability and Stress Testing
Managing Uncertainty for Structural Reforms
Breakfast with Embassies
Institutional Capacity Development for Better Reform Programs: Kosovo*
Programming Structural Reforms for the ERP 2023–2025: Montenegro
Training of Trainers: Knowledge Sharing Methodologies, Tools, and Skills
Study Visit of the Ministry of Finance of North Macedonia to the CEF:
Supporting Localization of PACT
Coaching for ERP Coordinators
Economic Reform Programme at a Glance
Meeting
Workshop
Webinar
Meeting
Workshop
Meetings in Skopje,
North Macedonia
Online meeting
Workshop
Workshop
Webinar
Workshop in Tirana, Albania
Workshop
Workshop in Prishtina, Kosovo
Workshop in Mostar,
Bosnia and Herzegovina
Webinar
Workshop
Workshop in Prishtina, Kosovo
Online meeting
Meeting in Podgorica, Montenegro
Workshop
Workshop
Online workshop
Workshop
Online workshop
Online meeting
Online meeting
Workshop
Workshop
Workshop
Workshop
Meeting
Online meetings
Workshop
Workshop
Study visit of delegation from
North Macedonia to CEF
Coaching meetings
Knowledge product
* Sorted in chronological order of delivery dates.
* Sorted in chronological order of delivery dates.

40 CEF ANNUAL REPORT 2022
GOVERNANCE AND CULTURE 41
GOVERNANCE
AND CULTURE
GOVERNING
BOARD
The CEF Governing Board is responsible for guiding the
organization’s strategic direction and program activities,
as well as reviewing progress and financial statements. It
is an independent and autonomous decision-making body
that includes also three representatives from the Advisory
Board.
The CEF Governing Board met at an annual meeting at the
CEF headquarters in Ljubljana. Andrej Šircelj, Minister of
Finance of Slovenia, and his successor in this position,
Klemen Boštjančič, ended Slovenia’s one-year term of
chairing the CEF Governing Board and passed the role to
Gent Sejko, Governor of the Bank of Albania. In 2022, the
Governing Board met also by correspondence.
The CEF Governing
Board is composed
of ministers of
finance and/or
governors of central
banks from the
following member
countries: Albania,
Bulgaria, Moldova,
Montenegro,
North Macedonia,
Romania, and
Slovenia.
CEF GOVERNING BOARD MEMBERS (AS AT APRIL 30, 2023)
Delina Ibrahimaj, Minister
Gent Sejko, Governor
Rositza Velkova-Jeleva, Minister
Fatmir Besimi, Minister
Anita Angelovska Bezhoska, Governor
Veronica Sireteanu, Minister
Octavian Armaşu, Governor
Aleksandar Damjanović, Minister
Radoje Žugić, Governor
Adrian Câciu, Minister
Mugur Isărescu, Governor
Klemen Boštjančič, Minister
Boštjan Vasle, Governor
Mateja Vraničar Erman, Secretary
Birger Nerré
Martin Polónyi, Director General
Ministry of Finance and Economy, Albania
Bank of Albania
Ministry of Finance, Bulgaria
Ministry of Finance, North Macedonia
National Bank of the Republic of North Macedonia
Ministry of Finance, Moldova
National Bank of Moldova
Ministry of Finance, Montenegro
Central Bank of Montenegro
Ministry of Finance, Romania
National Bank of Romania
Ministry of Finance, Slovenia
Banka Slovenije
Ministry of Foreign and European Affairs, Slovenia
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Ministry of Finance, Slovakia

42 CEF ANNUAL REPORT 2022
GOVERNANCE AND CULTURE 43
ADVISORY
BOARD
Three representatives from the Advisory Board also participate in the
CEF Governing Board. Members convene on an annual basis and cooperate
with staff members throughout the year when needed. Mateja
Vraničar Erman from the Ministry of Foreign and European Affairs of
Slovenia currently serves as its chair.
At their 2022 annual meeting, members of the Advisory Board provided
their expertise to fine-tune the 2023 program. They confirmed that it is in
line with the CEF’s strategic orientation and global trends, supports EU
integration processes, and is responsive to the region’s needs. They also
gave advice on talent management and shared experience in engaging
experts in the CEF program.
The CEF Advisory
Board consists of
experts from donors
and partners.
They provide
valuable support
to the institution
by offering diverse
perspectives on
designing and
coordinating the
activities of the CEF.
CEF ADVISORY BOARD MEMBERS (AS AT APRIL 30, 2023)
Mateja Vraničar Erman, Chair
Angelique van Haasteren
Sierd Hadley
Xavier Hawia
Marianna Macaškova
Birger Nerré
Ministry of Foreign and European Affairs, Slovenia
Ministry of Finance, the Netherlands
ODI, United Kingdom
National Bank of Belgium
Ministry of Finance, Slovakia
GIZ

44 CEF ANNUAL REPORT 2022
GOVERNANCE AND CULTURE 45
CEF Coordinators
are the appointed
representatives
of the ministries
of finance, central
banks and tax
administrations,
responsible
for capacity
development
and strategic
human resources
management.
CEF
COORDINATORS
CEF Coordinators are instrumental in identifying the
learning needs of individuals and institutions in their
region, and assist the Governing Board in setting
capacity development priorities.
CEF Coordinators meet regularly to discuss the latest
trends and pressing issues affecting their institutions,
such as the recent shift towards learning organizations
and the required human resource strategies.
They are essential for the CEF’s deeper understanding
of the learning needs of their constituency and for
developing relevant learning programs.
In June 2022, we organized a workshop for CEF Coordinators,
focused on knowledge management in
public institutions. This was part of the CEF Forum
2022 events. We also fostered a thriving community
of CEF Coordinators in tax administrations and
central banks. They met regularly and their active
participation in the events proves the need for such
engagement and wider regional cooperation.
CEF COORDINATORS (AS AT APRIL 30, 2023)
Vasilika Vjero
Ministry of Finance and Economy, Albania
Eralda Bici
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
Kaltrina Dauti Bytyci 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
Iulia Nazarco
State Tax Service, Moldova
Lidija Šećković
Revenue Administration, Montenegro
Marija Radenović
Central Bank of Montenegro
Magdalena Simonovska Ministry of Finance, North Macedonia
Aleksandra Kacarski National Bank of the Republic of North Macedonia
Marjan Mihajlovski
Public Revenue Office, North Macedonia
Emanuel-Alex Constantin Ministry of 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
Klemen Babnik
Ministry of Finance, Slovenia
Nataša Marušič Kuhar Financial Administration of the Republic of Slovenia
Taşkın Babaoğlan
Presidency of the Republic of Türkiye, Presidency of Strategy and Budget
Arzu Hancı Karademirci Central Bank of the Republic of Türkiye
Sabire Firdes Terzi
Ministry of Treasury and Finance, Türkiye

46 CEF ANNUAL REPORT 2022
GOVERNANCE AND CULTURE 47
The 34-member
CEF Secretariat
that carries
out day-to-day
activities is led by
the director and
supported by staff
members and
one expert. They
came from diverse
backgrounds –
Albania, Georgia,
Germany, North
Macedonia,
Serbia, Slovenia,
and Türkiye – and
thus offer valuable
international
experiences and
language skills.
SECRETARIAT
The Secretariat collaborated with 11 affiliated experts and two IMF regional technical
assistance advisors and their interpreter, as well as our growing expert community.
We prioritize people-centered approach not only through the learning experience we
offer but also demonstrate it internally through our organizational culture. These are
examples of how we did it in 2022:
We nurtured our internal communication through
• a three-member Staff Council that met on a monthly with staff members and
the lead team to address organizational matters that arise through daily work
• coaching and mentoring training for half of staff members
We prioritized out team’s well-being by providing:
• Hybrid and agile workplace to support flexibility and work-life balance
• Office gym to support our physical and mental health
• Regular monitoring of our well-being through internal and external surveys
We invested in our upskilling through internal and external trainings, conferences,
and other learning events:
• 23 internally designed learning opportunities: 17 short internal and external
knowledge-sharing sessions, 4 internal trainings and 2 retreats
• 36 external trainings, coaching, conferences, and other learning events
UNLOCKING POTENTIAL
THROUGH CEF’S COACHING AND
MENTORING APPROACH
We have integrated coaching and mentoring into our organizational
culture and learning, which helps us inspire
public officials to shape their institutional governance. In
2022, half of the staff members attended coaching and
mentoring skills training. Thus, we have started to implement
the principles of a coaching and mentoring culture
that emphasizes the application of skills during conversations.
We use those skills to improve our engagement
and commitment, and contribute to individual, team and
organizational performance.
As a learning organization, we also integrate coaching
and mentoring into our learning and knowledge sharing
program. In 2022, we started to provide coaching sessions
to ERP Coordinators and their team members to
enhance their coordination and management skills.
Building positive relationships based on trust and mutual
support facilitates transfer of knowledge. It helps us
adapt to changing circumstances, understand diverse
cultures and target audiences, and accept changes in
the internal and external environment. By adopting a
coaching and mentoring culture, we better equip ourselves
to support our participants and enable them to
achieve their goals.
Coaching sessions helped me to
improve my communication skills. I got much
useful information about areas in which I
should improve myself in order to achieve
better results. Getting to know me better and
realizing things that I am not doing at on optimal
level will help me in my career.
JOVAN BORIŠIĆ
Public Policy Secretariat of the Government
of Serbia, Coachee
The International Coaching Federation defines
coaching as a creative partnership that unlocks
untapped sources of imagination, productivity
and leadership, inspiring people to reach their
full potential. A coach is a non-judgmental,
ethical partner who demonstrates knowledge
through past experiences.
Coaching is a powerful tool for
people’s development in business but also
as a person. It supports people to grow as a
whole, fulfill their potential and regain sense
of purpose and meaning. It gives space to
connect with their core and with others, to
learn and act accordingly for the benefit of all.
And that is what CEF stands for – CONNECT,
LEARN, ACT!
ELENA ANTONOVSKA
ICF PCC, Coach

48 CEF ANNUAL REPORT 2022
GOVERNANCE AND CULTURE 49
PARTNERSHIPS
Through three types of partnerships – governance, donors and
knowledge sharing – we achieve our interconnected goals: good governance,
sustainable financing, and promotion of regional and global
expertise. CEF partners include governments, international financial
institutions, academia, independent experts and NGOs, as well as
CEF constituency institutions that co-fund our program, share their
expertise, and are members of our institutional governance.
We also facilitate communities of practice and networks, such as
Network of Regional Experts for Structural Reforms to foster collaboration
and inclusivity. By cooperating with a wide range of organizations
and experts, we can deliver our learning and knowledge sharing
program and implement international development cooperation, ultimately
achieving our mandate and generating value for all involved.
In particular, we collaborated closely with the IMF who uses the CEF
as a hub for their technical assistance in SEE. Our collaboration involves
sharing knowledge and expertise to address regional capacity
development needs through various learning and technical assistance
activities. In 2022, we hosted two FAD advisors for public financial
management and revenue administration and their interpreter.
The details of their work are provided in the IMF FAD Advisors’ Report
for 2022 (see appendix).
Our partner
relations support
delivering
our value
added to the
professionals,
their teams and
institutions in the
CEF constituency.

50 CEF ANNUAL REPORT 2022
GOVERNANCE AND CULTURE 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
here. Several partner institutions and donors
sponsor lecturers (travel expenses and lecturing
fees) for their engagement in CEF learning activities.
Following the Governing Board’s proposal
to gradually increase the number of
lecturing contributions, particularly from
our own constituency, there has been a
significant increase starting from 2018.
Similarly, the number of in-kind engagements
within our constituency surpassed
the number of paid ones in 2018.
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
EUR
Affiliated and external experts 6,500
CEF constituency institutions 44,250
Bank of Albania 2,750
Banka Slovenije 3,000
Central Bank of Bosnia and Herzegovina 1,000
Directorate for Economic Planning, Bosnia and Herzegovina 1,000
Financial Administration of the Republic of Slovenia, Slovenia 3,500
Ministry of Finance and Economy, Albania 9,250
Ministry of Finance, Montenegro 1,000
Ministry of Finance, North Macedonia 3,250
Ministry of Finance, Serbia 1,000
Ministry of Finance (and IMAD), Slovenia 6,000
Ministry of Labour, Family, Social Affairs and Equal Opportunities, Slovenia 2,500
National Bank of Moldova 1,000
National Bank of the Republic of North Macedonia 1,250
Presidential Strategy and Budget Office, Türkiye 1,000
Tax Administration of Kosovo 2,500
Other* 4,250
Other countries’ institutions 67,250
Banque de France 12,500
Chartered Institute of Public Finance and Accountancy (CIPFA), United Kingdom 6,250
GIZ, GmbH 2,000
Ministry of Finance, Georgia 1,000
Ministry of Finance, the Netherlands 27,750
National Bank of Belgium 7,750
National Bank of Slovakia 2,250
ODI, United Kingdom 2,000
Zurich University of Applied Sciences (ZHAW), Switzerland 2,500
Other* 3,250
EU institutions and international organizations 79,000
European Central Bank (ECB) 4,500
European Union 14,250
International Monetary Fund (IMF) 32,500
Organisation for Economic Co-operation and Development (OECD) 14,500
Regional Anti-Corruption Initiative (RAI) 2,000
Other* 11,250
Total 197,000
* Institutions with an estimated contribution of less than EUR 1,000.

52 CEF ANNUAL REPORT 2022
COMMUNICATION 53
COMMUNICATION
We strive to curate and communicate information that is relevant to
our internal and external audiences. We focus on showing the benefits
of the information we share, and we use various communication
channels to illustrate the impact and results of our work.
We are continuously developing our skills to tell stories – value creation
stories – about learning and changes in the region that lead to
reforms. We are successfully leveraging both social and digital media
to tell our shared stories and integrate them into future learning
initiatives. Our web page, social media channels, digital newsletter,
learning blog, digital stories, and videos are great examples of that.
Communication
is an integral
part of our
learning and
knowledge
sharing.
We made a new visual summary of the CEF thematic areas and updated
our web page for a better user experience when navigating
through our learning opportunities.
We also captured and packaged knowledge and experience in knowledge
products, printed and digital products – publications, reports,
good practices, recommendations, infographics, posters and videos.
16,000+ 4,000+ 18 12
SOCIAL MEDIA
CHANNELS AND
WEBSITE FOLLOWERS
NEWSLETTER
SUBSCRIBERS
(double the number from 2020)
LEARNING
BLOGS
DIGITAL
STORIES
11 10 7 4
KNOWLEDGE
PRODUCTS
VALUE CREATION
STORIES
PUBLICATIONS
VIDEOS
KNOWLEDGE PRODUCTS PUBLISHED IN 2022
• Facilitation Poster
• Feedback Poster
• Economic Reform Programme (ERP) at a Glance
• Everything You Always Wanted to Know About
Structural Reforms
• Fiscal Implications of Structural Reforms Project
in a Nutshell
• Integration of Structural Reforms and Fiscal
Frameworks in Economic Reform Programmes
• Monitoring the Implementation of Structural Reforms
- Theory and Practice
• Advancing the Digitalisation of the ERP Preparation
Process
• Tips and Tricks on Doing Risk Management
• How Public Institutions Can Become Learning
Organizations
• How Online Learning and Knowledge Sharing Work
at CEF

54 CEF ANNUAL REPORT 2022
MONITORING AND EVALUATION 55
MONITORING
AND EVALUATION
We collect value creation stories and integrate results from various
levels to better understand how change happens and how we
can contribute to it. To ensure that we are constantly improving
and adapting, we seek regular feedback during the implementation
of our activities and hold progress reporting and after-action
review meetings with external stakeholders.
At the end of each year, we evaluate our efforts and capture the
lessons learned to improve our results framework and make
even more progress in the year ahead. We reflect on how we can
strengthen our project-specific result frameworks to better connect
them with the higher-level outcomes that we wish to achieve.
In 2022, we established six strategic objectives to be achieved
by 2026 that coincide with the six building blocks of a learning
organization, and mapped out strategic targets for 2022. We
linked them to operational objectives and targets and our
individual performance plans. At the end of the year, we reviewed
the targets, which were predominantly achieved.
We established two new positions – data and monitoring and
evaluation manager and chief strategy officer – and adjusted the
organizational structure accordingly.
Monitoring
and evaluation
are vital to our
organization’s
work, as it helps
us understand
our impact and
make necessary
improvements.
SIX STRATEGIC OBJECTIVES OF THE CEF
aligned with six building blocks of a learning organization
GOVERNANCE AND CULTURE
We adjust our internal and external
governance and culture to the
needs of the institution collaboratively,
pro-actively and effectively.
RESOURCES
We ensure sufficient, stable and
efficiently managed resources
to promote staff development,
institutional innovation and program
delivery.
KNOWLEDGE CAPTURING,
PACKAGING AND SHARING
CEF staff, experts and partners
develop the capacities needed to
serve the focus areas of our impact
through our activities.
PARTNERSHIPS
We develop our capacity to nurture
partnerships that bring out
our value-added.
COMMUNICATION
Through our communication
channels, we make our value
added, impact and stakeholders
globally visible.
MONITORING AND EVALUATION
We regularly and effectively monitor
and evaluate our work, results and
risks, feed-forwarding the lessons
learned into future actions.

56 CEF ANNUAL REPORT 2022
MONITORING AND EVALUATION 57
RISK MANAGEMENT
We have a structured and systemic risk management process
integrated into other management systems to support
decision making. All staff members participate in risk identification,
monitoring and mitigation through regular meetings
and the development of the risk register. Risks are informally
reviewed as part of our daily work and formally addressed on
institutional and project levels.
MAJOR STRATEGIC AND OPERATIONAL RISKS
1. Financial risks: risks associated with ensuring long-term
financial sustainability, managing rising inflation, financial
planning, and executing financial plans
2. Political risks: risks stemming from political instability,
changes in governments and reform agendas in constituency
countries.
3. Cybersecurity: vulnerability to cyber-attacks, use and safety
of data
4. Reputation risks: risks associated with not meeting the
needs and expectations of the beneficiaries and donors,
as well as ethical culture
5. Human resources: risks related to attracting and mobilizing
the right talents and skills, developing an organizational
culture, safety and well-being
We also monitor risks associated with projects as an integral
part of our project management system that is conducted
quarterly.
FISR 2 PROJECT RISKS
1. Human resources: risks related to changes in ERP coordination
teams; ensuring a sufficient number of applications;
identifying appropriate candidates for learning activities;
high turnover of public officials at line ministries
working on the ERP process
2. EU accession process: risks related to interest of beneficiaries
to implement further changes to the ERP process
and its quality
3. Learning: risks related to similar projects and activities in
the ERP area; promoting retention and knowledge sharing
in institutions
4. Logistics: risks related to inability to effectively reach out
to the beneficiaries due to cyber-attacks as well as worsened
travel connections

58 CEF ANNUAL REPORT 2022
GOVERNANCE AND CULTURE 59
KEY ESG ASPECTS AND SDGs OF THE CEF IN 2022
SUSTAINABILITY
OVERVIEW
ENVIRONMENTAL ASPECTS
• Energy consumption and carbon
footprint
• Waste
• Paperless operations
SOCIAL ASPECTS
• Health, safety and satisfaction of
the staff
• Diversity and equal opportunity
• Investing in the local community
and supporting sports, culture,
education and health
GOVERNANCE ASPECTS
• Stable operations
• High standards of governance
• High stakeholder engagement
• Effective risk management
• Effective processes
Reduced average daily paper
consumption per employee from
45 in 2021 to 14 paper sheets
per day in 2022
2022 Learning and Networking
Program (capacity development
for SEE public institutions):
105 activities
Start of implementation of the
2022–2026 Strategic Direction of
the CEF, co-created and endorsed
by key stakeholders
Sustainability
reporting is not
yet a regulatory
requirement for our
organization but we
believe this overview
is an important step
towards greater
transparency and
accountability.
This sustainability overview represents our initial efforts to map out the environmental,
social and governance (ESG) impact to demonstrate our commitment to
sustainability and transparency for individuals, organizations, and societies we
serve.
In achieving the SDGs, we brought our most significant contribution to the realization
of the Goal 16: Peace, Justice and Strong Institutions and Goal 17: Partnerships for
the Goals through our learning and knowledge sharing activities.
We will in the future closely involve our stakeholders – staff members, governance
bodies, constituency and other beneficiary institutions, participants, experts, and
other relevant partners – in determining and achieving our ambitions in sustainable
development.
Providing kitchen for employees’
meals, sharing food leftovers for
consumption
Saving 4170 disposable coffee
cups and 1612 plastic water
bottles
Paperless (digital) operations
Reduced number of printed
publications
Hybrid work, reduced daily
commuting
Diverse staff members from eight
countries
Coaching and mentoring culture –
more than 50 % of staff members
participated in coaching trainings
Personal development plans for all
Short, regular internal knowledge
sharing sessions (23) to promote
personal and professional growth
Staff Council activities and dialogue
Monitoring surveys (2) on employee
well-being and satisfaction
Visiting the residents of a
retirement home
Supporting Pink October movement
Blood donations by staff members
Strategic institutional objectives
and targets paired with operational
for 2022
Implementation regularly
monitored and evaluated at the
end of the year – the majority of set
targets were fully achieved.
More multiannual project funding
acquired in 2022 that in addition to
the core budget represent a stable
medium-term outlook to funding
Organizational structure of the
CEF was adjusted in 2022 to serve
the implementation of the new
strategic direction
CEF governance remained lean and
efficient

60 CEF ANNUAL REPORT 2022
FINANCIAL STATEMENTS 61
FINANCIAL
REPORT

62 CEF ANNUAL REPORT 2022
FINANCIAL STATEMENTS 63
FINANCIAL STATEMENTS
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.
Note: Due to rounding, numbers presented throughout this Financial
Report may not add up precisely to the totals provided.

64 CEF ANNUAL REPORT 2022
FINANCIAL STATEMENTS 65
1. FINANCIAL STATEMENTS
1.1. STATEMENT OF FINANCIAL POSITION 1.2. STATEMENT OF PROFIT OR LOSS
Items
Note
December
31, 2022
EUR
December
31, 2021
Non-current assets 599,201 659,011
Intangible assets 1 15,525 24,839
Property, plant and equipment 2 583,676 634,171
Current assets 3,520,985 2,308,449
Trade receivables 3 208,345 65,744
Cash and cash equivalents 4 3,312,640 2,242,706
Prepayments and other assets 5 497,248 655,436
TOTAL ASSETS 4,617,434 3,622,896
Equity (Founder’s funds) 1,328,648 1,401,802
Share capital (Founder's funds) 6 4,173 4,173
Capital surplus 6 225 225
Fair value reserve 6 -10,990 -80,332
General reserves 6 1,335,240 1,477,736
EUR
Items Note 2022 2021
Revenue from program 11 2,672,760 2,446,709
Other revenue 78,241 42,044
Total revenue 2,751,001 2,488,753
Cost of materials 13 69,839 77,473
Cost of services 14 1,027,575 704,344
Labor costs 15 1,682,867 1,580,384
Depreciation and amortization costs 16 89,684 78,664
Other operating expenses 17 17,871 10,142
Other expenses 19 2,312 2,695
Total expenses 2,890,148 2,453,701
Financial income 12 89 143
Financial costs 18 3,439 1,501
Annual result -142,497 33,694
Provisions and long-term accrued costs and deferred revenue 812,597 952,676
Provisions 7 213,396 293,574
Long-term accrued costs and deferred revenue 8 599,201 659,102
Operating liabilities 225,327 305,359
Trade payables 9 67,418 145,403
Liabilities to employees 9 152,904 138,673
Other short-term payables 9 5,004 21,284
Advances payable and other current liabilities 10 2,250,862 963,058
TOTAL EQUITY AND LIABILITIES 4,617,434 3,622,896
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
2022
EUR
Generated in
2021
Excess of revenues over expenses -142,497 33,694
Other comprehensive income
Actuarial gains (losses) 69,343 41,842
Other comprehensive income for the period 69,343 -41,842
Total comprehensive income (loss) for the period -73,154 -8,147
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.

66 CEF ANNUAL REPORT 2022
FINANCIAL STATEMENTS 67
1.4. CASH FLOW STATEMENT
1.5. STATEMENT OF CHANGES IN EQUITY
EUR
Items 2022 2021
Cash flows from operating activities
Annual result 2,751,001 2,488,753
Total expenses -2,890,148 -2,453,701
Adjustments for
Amortization and depreciation 89,684 78,664
Actuarial gains (losses) 69,343 -41,842
Write-downs of property, plant and equipment 676 2,524
Financial income -54 0
Financial costs -3,439 -1,501
Operating profit before changes in net current assets and taxes 17,063 72,898
YEAR 2022
Items
Share capital
(Founder's
funds)
Capital
surplus
Fair Value
reserves
General
reserves
EUR
Total
Equity
Opening balance as of January 1, 2022 4,173 225 -80,332 1,477,736 1,401,802
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 69,342 -142,496 -73,154
0 0 69,342 0 69,343
Annual result 0 0 0 -142,496 -142,497
Closing balance as of December 31, 2022 4,173 225 -10,990 1,335,240 1,328,648
Changes in net current assets and provisions
Change in receivables -142,602 9,764
Change in prepayments and other assets 158,188 -607,893
Change in operating liabilities -80,032 158,628
Change in provisions -140,080 26,504
Change in advances payable and other current liabilities 1,287,804 343,907
Net cash flow from operating activities 1,100,341 3,809
Cash flow from investing activities
Interest received 143 143
Acquisitions of property plant and equipment -30,551 -43,395
Net cash flow from investing activities -30,408 -43,252
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 2,242,706 2,282,149
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 0 0 -41,842 33,694 -8,147
Other components of the comprehensive
income for the reporting period 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
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 1,069,933 -39,444
Cash and cash equivalents at the end of period 3,312,639 2,242,706
Accounting policies and notes are an integral part of these financial statements
and should be read in conjunction with them.

68
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 69
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 of public officials and their institutions in South East Europe
through learning and knowledge sharing. It primarily works with ministries of finance, central banks,
tax administrations, and budget intensive line ministries. Thematically it focuses on the technical
expertise of public financial management and central banking and combines it with non-technical
areas of leadership for managing reforms and learning and knowledge ecosystems. The results on the
ground show that combining technical with non-technical areas is CEF’s major value added. The CEF
is a leader in applying people-centered learning approaches and holding the know-how of becoming
and being a learning organization.
The financial statements of the CEF were prepared for the business year that ended on December
31, 2022.
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 25, 2023.
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.
(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.

70
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 71
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.
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
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 2022 2021
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 2022.
(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.

72
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 73
Estimated useful lives for the current and comparative year are as follows:
Amortization rates 2022 2021
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 2022.
(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.
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 4.539% was set for the calculation on December 31, 2022 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.
(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.
(J) FINANCIAL INCOME AND FINANCIAL EXPENSES
Financial income includes interest from deposits and positive exchange rate differences.
Financial expenses include negative exchange rate differences.
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.

74
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 75
(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 16 “Leases” - Covid-19-Related Rent Concessions beyond 30 June 2021
(effective for annual reporting periods beginning on or after 1 April 2021)
• 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 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 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 IFRS 16 “Leases” - Lease Liability in a Sale and Leaseback (effective for annual
periods beginning on or after 1 January 2024),
• Amendments to IAS 1 “Presentation of Financial Statements” - Non-current Liabilities with
Covenants (effective for annual periods beginning on or after 1 January 2024),
• 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).
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.
• 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 adoption of these new standards, amendments to the existing standards and interpretation
has not led to any material changes in the CEFs financial statements.
(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 issued on 25 June 2020
and amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9” issued on 9 December
2021 (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 IFRS 16 “Leases” - Covid-19-Related Rent Concessions beyond 30 June 2021 are effective for annual
periods beginning on or after 1 April 2021 but earlier application is permitted, including in financial statements not yet
authorised for issue at the date the amendment is issued.

76
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 77
3. NOTES TO THE FINANCIAL
STATEMENTS
NOTE 1: INTANGIBLE ASSETS
Intangible assets
January 1,
2022
New
investments Write-offs Amortization
EUR
December 31,
2022
Purchase value 56,258 0 -2,138 0 54,120
Accumulated amortization -31,418 0 2,138 -9,315 -38,595
Carrying value 24,839 0 0 -9,315 15,525
Intangible assets
January 1,
2021
New
investments Write-offs Amortization
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 comprise computer software and textbooks for TIAPS program and are recorded at purchase value. A
change in position results from investment and amortization. In 2022 CEF didn’t have investments in intangible assets.
NOTE 2: PROPERTY, PLANT AND EQUIPMENT
Equipment
January 1,
2022
New
investments Write-offs Depreciation
EUR
December 31,
2022
Purchase value 1,331,538 30,551 -44,640 1,317,449
Accumulated depreciation -697,367 43,964 -80,369 -733,773
Carrying value 634,171 30,551 -676 -80,369 583,676
Equipment
January 1,
2021
New
investments Write-offs Depreciation
December 31,
2021
Purchase value 1,312,627 43,395 -24,484 0 1,331,538
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.
New investments in 2022 comprise electronic equipment (computers). The CEF’s equipment is not pledged.
Liabilities for purchase of equipment as of December 31, 2022 amount to EUR 0 and in amount to EUR 19,383 as
of December 31, 2021.
NOTE 3: TRADE RECEIVABLES
Trade receivables December 31, 2022 December 31, 2021
Banka Slovenije 0 1,517
IMF 144,388 0
Other receivables 63,957 64,227
Total 208,345 65,744
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 2022.
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.
Age structure and changes in impairments of receivables
EUR
EUR
December 31, 2022 December 31, 2021
Aging of receivables Gross amount Impairments Gross amount Impairments
Not past due 208,345 0 65,744 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
More than one year 0 0 0 0
Total 208,345 0 65,744 0
Accumulated depreciation -649,978 0 21,960 -69,350 -697,367
Carrying value 662,649 43,395 -2,524 -69,350 634,171

78
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 79
NOTE 4: CASH AND CASH EQUIVALENTS
Cash and cash equivalents December 31, 2022 December 31, 2021
Cash and deposits in EUR 3,311,982 2,241,256
Cash and deposits in USD 174 1,135
Cash in hand 484 315
Total 3,312,640 2,242,706
Cash and cash equivalents comprise short-term deposits in EUR and USD with UniCredit Bank, Ljubljana.
NOTE 5: PREPAYMENTS AND OTHER ASSETS
Prepayments and other assets January 1, 2022 Disbursement Increases December 31, 2022
Accrued revenue (not yet invoiced) 627,127 -627,126 467,158 467,158
Advance payments 719 -719 5,580 5,580
Deferred costs 27,590 -8,200 5,120 24,510
Total 655,436 -636,045 477,858 497,248
Prepayments and other assets January 1, 2021 Disbursement Increases December 31, 2021
Accrued revenue (not yet invoiced) 0 0 627,126 627,127
Advance payments 23,124 -23,124 719 719
Deferred costs 24,419 -24,419 27,590 27,590
Total 47,543 -47,543 654,716 655,436
Short-term deferred costs and accrued revenue comprise accrued income and costs that were paid in 2022 and will
occur in 2023, such as insurance premiums.
NOTE 6: EQUITY
Equity (Founder’s funds) December 31, 2022 December 31, 2021
Share capital (Founder's funds) 4,173 4,173
Capital surplus 225 225
Fair value reserves -10,990 -80,332
General reserves 1,335,239 1,477,736
Total 1,328,648 1,401,802
EUR
EUR
EUR
Share capital represents start-up contribution in the amount of EUR 4,173 and capital surplus.
The negative result generated in 2022 was covered from 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 10,990
at the end of 2022.
NOTE 7: PROVISIONS
Provisions January 1, 2022 Decreases Increases December 31, 2022
Reserves for severance pay 257,197 -80,178 0 177,019
Other provisions 36,377 0 0 36,377
Total 293,574 -80,178 0 213,396
Provisions January 1, 2021 Decreases 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
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.
NOTE 8: GOVERNMENT GRANTS
Long-term accrued costs
and deferred revenue
January
1, 2022
New
investments
Write
offs
Amortization
and
depreciation
EUR
EUR
EUR
December
31, 2022
Fund to finance amortization and depreciation 659,103 30,551 -768 -89,685 599,201
Carrying value 599,201
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
Government grants are covering the depreciation and amortization of long-term assets.

80
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 81
NOTE 9: OPERATING LIABILITIES
Operating liabilities December 31, 2022 December 31, 2021
Trade payables to suppliers in Slovenia 63,860 125,801
Trade payables to suppliers outside Slovenia 3,558 19,602
Liabilities to employees 152,904 138,673
Other short-term liabilities 5,004 21,284
Total 225,327 305,359
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, 2022 Disbursements Increases December 31, 2022
Deferred revenues for projects 906,611 -839,805 2,129,498 2,196,304
Other accrued costs 56,446 -56,146 54,258 54,558
Total 963,058 -895,951 2,183,755 2,250,862
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
NOTE 11: REVENUE FROM PROGRAM
Revenue from program in 2022 Project** Invoiced
From/To
accrued
revenue
From/To
deferred
revenue
EUR
Net
amount
Ministry of Finance, Slovenia Program 2022 1,000,000 0 0 1,000,000
Ministry of Foreign and European
Affairs, Slovenia
PACT MKD, L2,
EPSAM, DRM
315,331 0 0 315,331
Ministry of Finance, the Netherlands TPA, PIFC 227,121 0 0 227,121
Banka Slovenije MFE 201,616 0 0 201,616
EU FISR, FISR 2 323,873 467,158 0 791,030
Ministry of Finance, Slovakia PACT MKD, L2 33,194 33,194
CIPFA Conference 15,877 0 0 15,877
IMF Workshops 17,645 0 0 17,645
GIZ Workshops 10,632 10,632
Ministry of Finance, Slovenia 244 0 0 244
Other 168 0 0 168
Total 2,145,701 467,158 0 2,612,859
To provisions to finance
amortization and depreciation
From provisions to finance
amortization and depreciation
0 0 -30,551 -30,551
0 90,452 0 90,452
Total 2,145,701 557,610 -30,551 2,672,760
Transfer to reserves 0 0 0 142,497
Contract liabilities represent revenues received in 2022 for costs that will occur in 2023; EUR 877,612.72 for the
FISR 2 project and EUR 1,134,559.72 for the WeLead project, both financed by European Union and EUR 166,806.63
for PACT MKD, L2 co-financed by Ministry of Finance, Slovakia and 17,325.23 for projects co-financed by Ministry of
Foreign and European Affairs, Slovenia.
Other accrued costs relate to costs that occurred in 2022 and invoices not received yet, auditing services and costs of
unused annual leave days that were allocated to the staff for the year 2022 and are to be used by August 31, 2023.
** Projects: Fiscal Implications of Structural Reforms (FISR); Structural Reforms Better Integrated within Fiscal Frameworks (FISR 2); Public Accountants
Certification Training at diploma level, North Macedonia (PACT MKD, L2); Efficient Public Sector Asset Management (EPSAM); Strengthening Domestic
Revenue Mobilization for Sustainable Development (DRM); Strengthening Capacities in Providing Sound, Resilient and Developed Macroeconomic
and Financial Environment (MFE); Public Internal Financial Control (PIFC); Tax Policy and Administration (TPA).

82
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 83
Revenue from program in 2021 Project Invoiced
From/To
accrued
revenue
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 MKD, L2 199,952 0 0 199,952
Ministry of Finance, the Netherlands TPA, PIFC 229,001 0 0 229,001
Ministry of Finance, Slovakia PACT Montenegro, FISR 61,094 0 0 61,094
Bank of Slovenia 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
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 2022 2021
Costs of energy 35,118 33,359
Materials and spare parts 12,251 11,840
Office supplies 12,254 25,813
Other costs of materials 10,215 6,461
Total 69,839 77,473
Costs of materials and spare parts comprise spare parts for equipment and materials for maintaining the CEF
premises.
EUR
NOTE 14: COSTS OF SERVICES
Costs of services 2022 2021
Production services costs 140,537 146,751
Transport services costs for events 212,128 40,255
Rents 31,891 30,636
Costs of employees’ business travels 40,221 7,904
Payments, bank services, insurance costs 19,079 14,852
Intellectual services costs for events 130,659 212,873
Intellectual services costs 66,101 19,203
Costs of exhibition, advertising 8,700 3,491
Personal services costs for events (authors, translators, mentors) 169,217 152,817
Costs of other services for events 209,043 75,561
Total 1,027,575 704,344
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 2022 2021
Employee salaries 1,244,674 1,183,725
Employee salaries compensation 45,884 16,978
Reimbursement and other employee benefits 185,989 170,127
Employer's salaries contributions, taxes 188,117 173,667
Other labor costs 18,203 35,887
Total 1,682,867 1,580,384
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, 2022, the CEF
had 34 employees. In 2022, there were three international employees, who do not pay social security and personal
income taxes.
EUR
EUR
In 2022, the CEF calculated costs of annual leave days that were unused in 2022 and are to be used by the end of
August, 2023. Other labor costs comprise provisions for severance payments and long-service bonuses.

84
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 85
The earnings of members of the Executive Management and Governing Board
EUR
Data regarding groups of persons
Employees under individual employment contract
December 31, 2022 December 31, 2021
Salaries 81,294 78,214
Reimbursements and other employee benefits 2,287 7,300
Total 83,581 85,513
Members of the Governing Board are not compensated.
Number of employees by formal education level
Number of employees by formal education level (EQF) December 31, 2022 December 31, 2021
Level 4 2 2
Level 5 4 3
Level 6 6 6
Level 7 18 18
Level 8 4 4
Total 34 33
NOTE 16: AMORTIZATION AND DEPRECIATION
EUR
Amortization and depreciation 2022 2021
Amortization of intangible assets 9,314 9,314
Depreciation of equipment 61,864 50,844
Depreciation of other fixed assets 18,506 18,506
Total 89,684 78,664
NOTE 17: OTHER OPERATING EXPENSES
EUR
Other operating expenses 2022 2021
Contributions not related to labor costs 2,918 377
Students’ work 14,328 9,239
Other costs 626 526
Total 17,871 10,142
NOTE 18: FINANCIAL COSTS record negative exchange rate changes.
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.
Exposure to changes in exchange rates is presented in the table below.
CREDIT RISK
Credit risk Note December 31, 2022 December 31, 2021
Cash and cash equivalents 4 3,312,640 2,242,706
Trade receivables 3 208,345 65,744
Total 3,520,985 2,308,449
EUR
NOTE 19: OTHER EXPENSES represent differences from rounded amounts paid in cash.

86
CEF FINANCIAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 87
CURRENCY RISK
EUR
Currency risk December 31, 2022 EUR USD CHF GBP
Cash and cash equivalents 3,312,640 3,312,640 0 0 0
Trade receivables 208,345 208,345 0 0 0
Operating liabilities 225,327 224,058 0 1,269
Total 3,746,312 3,745,043 0 1,269 0
EUR
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 305,360 304,876 0 484 0
Total 2,613,809 2,612,190 1,135 484 0
Change in exchange rate would not have significant effect on the financial statements.
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.
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, 2022 December 31, 2021
Financial instruments at fixed interest rates
Financial assets (deposits) 3,152,488 2,237,471
Financial liabilities 0 0
Financial instruments at fixed interest rates
Financial assets 0 0
Financial liabilities 0 0
Total 3,152,488 2,237,471
EUR
FAIR VALUE
Fair value
Carrying
amount
2022
Fair value
Carrying
amount
EUR
2021
Fair value
Trade receivables 208,345 208,345 65,744 65,744
Cash and cash equivalents 3,312,640 3,312,640 2,242,706 2,242,706
Prepayments and other assets 497,248 497,248 655,436 655,436
Trade payables 67,418 67,418 145,403 145,403
Other short-term payables 5,004 5,004 21,284 21,284
Advances payable and other current liabilities 2,250,862 2,250,862 963,058 963,058
Total 6,341,518 6,341,518 4,093,629 4,093,629
FAIR VALUE OF ASSETS
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.
Fair value of assets Level 1 Level 2
2022
Level 3 Level 1 Level 2
EUR
2021
Level 3
The fair values of individual groups of assets were determined for measurement and/or reporting purposes based on
the method described below.
Non-current financial assets
The fair value of non-current financial assets is determined based on the closing market price as at the reporting date.
Trade receivables 0 0 208,345 0 0 65,744
Cash and cash equivalents 3,312,640 0 0 2,242,706 0 0
Prepayments and other assets 0 0 497,248 0 655,436
Total 3,312,640 0 705,593 2,242,706 0 721,179

88
CEF FINANCIAL REPORT 2022
CERTIFIED AUDITOR’S REPORT 89
FAIR VALUE OF LIABILITIES
Fair value of liabilities Level 1 Level 2
2022
Level 3 Level 1 Level 2
EUR
2021
Level 3
Trade payables 67,418 0 0 145,403 0 0
Other short-term payables 5,004 0 0 21,284 0 0
Advances payable and other
current liabilities
2,250,862 0 0 963,058 0 0
Total 2,323,285 0 0 1,129,744 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 2022.
7. CERTIFIED AUDITOR’S REPORT
Deloitte revizija d.o.o.
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INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT
To the founders and the Governing Board of organization Center of Excellence in Finance
To the founders and the Governing Board of organization Center of Excellence in Finance
Opinion
Opinion
We have audited the financial statements of organization Center of Excellence in Finance (hereinafter ‘the
Company’), We have audited which the comprise financial the statements of of organization financial position Center as of at Excellence 31 December in Finance 2022, and (hereinafter the profit ‘the or
loss Company’), statement, which statement comprise of other statement comprehensive of financial income, position the statement as 31 December of changes 2022, in equity and and the profit the cash or
flow loss statement, statement for the year of other then ended, comprehensive and notes income, to the the financial statement statements, of changes including equity a and summary the cash of
significant flow statement accounting for the policies. 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 In our opinion, of the Company the accompanying as at 31 December financial statements 2022, and present its financial fairly, performance in all material and respects, its cash flows the financial for the
year position then of ended the Company in accordance as at 31 with December International 2022, and Financial its financial Reporting performance Standards and as its adopted cash flows by the for the EU
(hereinafter year then ended ‘IFRS’). in accordance with International Financial Reporting Standards as adopted by the EU
(hereinafter ‘IFRS’).
Basis for opinion
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under We conducted those standards our audit are in accordance further described with International in the Auditor’s Standards Responsibilities Auditing for (ISAs). the Audit Our of responsibilities
the Financial
Statements under those section standards of our are report. further We described are independent the Auditor’s of the Company Responsibilities in accordance for the with Audit the of International
the Financial
Code Statements of Ethics section for of Professional our report. We Accountants are independent (including of the International Company in Independence accordance with Standards) the International of the
International Code of Ethics Ethics for Standards Professional Board Accountants for Accountants (including (IESBA International Code) and other Independence ethical requirements Standards) that of the are
relevant International to our Ethics audit Standards of the Board financial for statements Accountants in (IESBA Slovenia, Code) and and we other have ethical fulfilled requirements our other that ethical are
responsibilities relevant to our in audit accordance of the financial with these statements requirements. in Slovenia, We believe and we that have the fulfilled audit evidence our other we ethical have
obtained responsibilities is sufficient in accordance and appropriate with these to provide requirements. a basis for We our believe audit opinion. that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as
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Deloitte firm and is related a leading entity global is liable provider only of for audit its own and acts assurance, and omissions, consulting, and financial not those advisory, of each risk other. advisory, DTTL does tax and not related provide services. to Our clients. global Please network see of www.deloitte.com/si/about member firms and related entities to learn in more. more than 150 countries
and territories (collectively, the „Deloitte organization“) serves four out of five Fortune Global 500®companies. Learn how Deloitte’s approximately 312,000 people make an impact that matters at
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and territories (collectively, the „Deloitte organization“) serves four out of five Fortune Global 500®companies. Learn how Deloitte’s approximately 312,000 people make an impact that matters at
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Slovenia the services are provided by Deloitte revizija d.o.o. and Deloitte svetovanje d.o.o. (jointly referred to as “Deloitte Slovenia”) which are affiliates of Deloitte Central Europe Holdings Limited. Deloitte
Slovenia is one of the leading professional services organizations in the country providing services in audit and assurance, consulting, financial advisory, risk advisory, tax and related services, through over 160
national In Slovenia and the foreign services professionals. are provided by Deloitte revizija d.o.o. and Deloitte svetovanje d.o.o. (jointly referred to as “Deloitte Slovenia”) which are affiliates of Deloitte Central Europe Holdings Limited. Deloitte
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Deloitte national revizija and foreign d.o.o. professionals.
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90
CEF FINANCIAL REPORT 2022 CERTIFIED AUDITOR’S REPORT 91
Other information
Management is responsible for the other information. The other information comprises the information,
included In relation in to Annual this and report, based other on our than procedures the financial performed, statements we and report our that: auditor’s report thereon.
Other information are, in all material respects, consistent with the financial statements;
Our opinion Other on information the financial are statements prepared does in compliance not cover the with other applicable information law and regulation; we express and no assurance
thereon. Based on our knowledge and understanding of the Organization and its environment obtained in
the audit, we did not identify any material misstatement of fact related to the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, Responsibilities in doing so, of Management assess whether and the Governing other Board information the is Financial materially Statements inconsistent with the financial
statements, Management legal is responsible requirements for the or preparation our knowledge and fair obtained presentation in the of audit, the financial or otherwise statements appears in to be
materially accordance misstated. with IFRS, If and based for on such our internal work performed control as we management conclude that determines other information is necessary include to enable material the
misstatement preparation of we financial need statements to report such that circumstances. are free from material In relation misstatement, to this and whether based on due our to fraud procedures or
performed, error. we report that:
In preparing the financial statements of the Organization, management is responsible for assessing its
ability to • continue other information as a going concern, is, in all material disclosing respects, matters consistent related to going with the concern audited and financial using the statements; going
concern • basis other of accounting information unless is prepared management in compliance either intends with applicable to liquidate law the or regulation; Organization and or to cease
operations, • based or has on no our realistic knowledge alternative and but understanding to do so. of the Organization and its environment obtained
Governing Board in the is audit, responsible we did for not overseeing identify the any Organization’s material misstatement financial reporting of fact process related and to the for other
approving audited information. annual report.
Responsibilities Auditor’s Responsibilities of Management for the and Audit Those of the Charged Financial with Statements Governance for the Financial Statements
Management Our objectives is are responsible to obtain reasonable for the preparation assurance about and fair whether presentation the financial of the statements financial as statements a whole are in
accordance free from material with IFRS, misstatement, and for such whether internal due control to fraud as management or error, and determines to issue an is auditor’s necessary report to enable that the
preparation includes our of opinion. financial Reasonable statements assurance that are free is a from high material level of assurance, misstatement, but is whether not a guarantee due to fraud that or an error.
audit conducted in accordance with auditing rules will always detect a material misstatement when it
In exists. preparing Misstatements the financial can statements arise from of fraud the Organization, or error and are management considered is material responsible if, individually for assessing or in its the ability
to aggregate, continue they as a could going reasonably concern, disclosing be expected matters to influence related the to going economic concern decisions and using of users the taken going on concern the
basis of of accounting these financial unless statements. management either intends to liquidate the Organization or to cease operations,
or has no realistic alternative but to do so.
As part of an audit in accordance with auditing rules, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
Governing Board is responsible for overseeing the Organization’s financial reporting process and for
approving Identify audited and annual assess report. the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
Auditor’s evidence Responsibilities that is sufficient for the Audit and appropriate of the Financial to provide Statements 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
Our objectives may involve are to collusion, obtain reasonable forgery, intentional assurance omissions, about whether misrepresentations, the financial statements or the override as a whole of are
free from internal material control. misstatement, whether due to fraud 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 audit
Obtain an understanding of internal control relevant to the audit in order to design audit
conducted
procedures
in accordance
that are
with
appropriate
International
in the circumstances,
Standards on
but
Auditing
not for
will
the purpose
always
of
detect
expressing
a material
an
misstatement
opinion
when
on the
it exists.
effectiveness
Misstatements
of the Organization's
can arise from
internal
fraud or
controls.
error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken Evaluate on the the basis appropriateness of these financial of accounting statements. policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, 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 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
As part of an audit in accordance with International Standards on Auditing, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
• disclosures Identify are and inadequate, assess the risks to modify of material our opinion. misstatement Our conclusions of the financial are based statements, on the audit whether due
evidence to fraud obtained or error, up design to the date and perform of our auditor’s procedures report. However, responsive future to events those risks, or conditions and obtain
may audit cause evidence the organization that is sufficient to cease and to continue appropriate as a to going provide concern. a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
Evaluate the overall presentation, structure and content of the financial statements, including the
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
disclosures, and whether the financial statements represent the underlying transactions and
override of internal control.
events in a manner that achieves fair presentation.
• Obtain an understanding of internal control relevant to the audit in order to design audit
We communicate procedures with Governing that are appropriate Board regarding, the circumstances, among other matters, but not for the the planned purpose scope of expressing and timing an of
the audit and opinion significant on the audit effectiveness findings, of including the Organization any significant 's internal deficiencies controls. in internal control that we
identify • during Evaluate our audit. the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
DELOITTE REVIZIJA related d.o.o. to 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
Yuri Sidorovich to draw attention in our auditor’s report to the related disclosures in the financial statements
Certified auditor 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.
Ljubljana, • 6 Evaluate May 2022 the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
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 auditor
Ljubljana, 25 May 2023

92 CEF ANNUAL REPORT 2022
APPENDIX: IMF FAD ADVISORS’ REPORT, 2022 93
APPENDIX:
IMF FAD ADVISORS’
REPORT, 2022
The CEF hosts two IMF FAD Regional Advisors:
Yasemin Hürcan, covering PFM, and Jim Sorensen,
covering revenue administration (RA). Together with
three other IMF colleagues, Bojan Pogačar (PFM)
and Dmitri Jegorov (RA), who are based at the Joint
Vienna Institute in Vienna, and the resident advisor Jan
Hansen, based in Banja Luka, Bosnia and Herzegovina,
they facilitate the implementation of an IMF project to
support capacity development (CD) in the areas of PFM
and RA in SEE. The beneficiary countries are Albania,
Bosnia and Herzegovina, Kosovo, Montenegro, North
Macedonia, and Serbia.
This project is delivered with financial support from
the EU and the Swiss State Secretariat for Economic
Affairs (SECO). 1 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.
In 2022, IMF FAD Advisors continued to support the authorities
in addressing the impact of the pandemic while
also pursuing longer-term reforms. With the resumption
of travel, CD requests have increased. Leveraging
the experience from the previous year, the IMF maintained
frequent contact with the authorities to identify
relevant areas of support and quickly accommodated
new CD requests that appeared due to modified country
priorities. With improving health conditions, the
authorities also started to resume longer-term reform
efforts. Renewed efforts in improving tax compliance
with the development of comprehensive Compliance
Improvement Plans (CIP), based on comprehensive
risk analysis and improved use of third-party data, were
seen in RA, while renewed efforts to strengthen fiscal
risk management and public investment management
(PIM) were seen in PFM.
For revenue administration, in 2022 capacity development
focused on building capabilities in all core RA
processes and providing strategic advice on each administration’s
medium-term reform agenda. In addition to
strengthening reform capabilities, adopting more datadriven
and risk-based approaches, and better managing
large taxpayers, attention was given to key administrative
functions by enhancing audit methodologies, improving
the arrears management function, and debt collection
procedures, all contributing to sustained revenue
mobilization.
In PFM, fiscal risk management continued to be the
main area of CD support. While the impact of the pandemic
has lessened somewhat, the appearance of new
shocks in the energy sector has stressed once again
the importance of fiscal sustainability in developing
strong frameworks for managing fiscal risks. Some
State-Owned Enterprises (SOE)-related risks have materialized,
requiring increased budget support and underscoring
the importance for ministries of finance across
the region to improve their SOE monitoring and reporting
practices. Fiscal risks CD also covered fiscal risks from
Public-Private Partnerships, court decisions and arrears.
Regional advisors continued to play a key role in
maintaining engagement with authorities to discuss the
implementation of previous recommendations, identify
areas for potential support, and agree on upcoming CD
engagements. Workshops and webinars also played
a key role to provide training in common areas, such
as cash management and high-wealth individuals,
introducing authorities to new topics like the new climate
PIMA module, and fostering peer-to-peer learning, for
example, through the establishment of the community
of practice in fiscalization.
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.
1 Phase II of the project ended in December 2022. Phase III started in January 2023 and will end in December 2026.

Published by: CEF
Production editors: Urška Miklič & Irena Lukač
Text editor: Kadri Põdra
Design: Sonja Eržen
Photographs: CEF Archive, Aleksander Kovačič & Urška Rahne
Illustrations: Alenka Oblak & Mireille van Bremen
Printing: Tiskarna Januš
June 2023
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