2022 CEF Annual Report
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<strong>2022</strong><br />
ANNUAL<br />
REPORT<br />
Supporting capacity development of<br />
public officials and their institutions<br />
in South East Europe through learning<br />
and knowledge sharing
ACRONYMS<br />
CHU<br />
CIPFA<br />
EC<br />
EU<br />
ERP<br />
ESG<br />
FISR<br />
GIZ<br />
IMF<br />
IPA<br />
IT<br />
IPSAS<br />
ODI<br />
PACT<br />
PFM<br />
SDG<br />
SEE<br />
TIAPS<br />
Central Harmonization Unit<br />
Chartered Institute of Public Finance<br />
and Accountancy<br />
European Commission<br />
European Union<br />
Economic Reform Programme<br />
Environmental, social and governance<br />
Fiscal Implications of Structural Reforms<br />
Deutsche Gesellschaft für Internationale<br />
Zusammenarbeit<br />
International Monetary Fund<br />
Instrument for Pre-accession Assistance<br />
Information Technology<br />
International Public Sector Accounting<br />
Standards<br />
Overseas Development Institute<br />
Public Accountants Certification Training<br />
Public Financial Management<br />
Sustainable Development Goal<br />
South East Europe<br />
Training of Internal Audit in the Public<br />
Sector<br />
<strong>2022</strong><br />
ANNUAL<br />
REPORT<br />
Supporting capacity development of<br />
public officials and their institutions<br />
in South East Europe through<br />
learning and knowledge sharing<br />
LJUBLJANA, JUNE 2023
CONTENTS<br />
CONTENTS<br />
ABOUT THE <strong>CEF</strong>................................................................................................. 7<br />
CHAIR OF THE <strong>CEF</strong> GOVERNING BOARD’S WELCOME.....................................8<br />
DIRECTOR’S WELCOME.....................................................................................9<br />
BUSINESS REPORT....................................................11<br />
<strong>CEF</strong>’s Focus and Value Added........................................................................ 12<br />
Learning and Knowledge Sharing Program Highlights in <strong>2022</strong>....................14<br />
Knowledge Capturing, Packaging and Sharing..............................................24<br />
List of Learning and Knowledge Sharing Activities in <strong>2022</strong>........................ 36<br />
Governance and Culture................................................................................. 40<br />
Partnerships.................................................................................................... 48<br />
Communication............................................................................................... 52<br />
Monitoring and Evaluation............................................................................. 54<br />
SUSTAINABILITY OVERVIEW............................................................................ 58<br />
FINANCIAL REPORT................................................... 61<br />
APPENDIX: IMF FAD Advisors’ <strong>Report</strong> 92...................................................... 92
6 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong> <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
7<br />
OUR VISION<br />
As leaders in learning, our vision is to inspire<br />
public officials, both individuals and teams,<br />
to shape institutional governance that drives<br />
successful economies and fair societies.<br />
OUR MISSION<br />
We support capacity development of public<br />
officials and their institutions in South East<br />
Europe through learning and knowledge<br />
sharing.<br />
OUR WORK<br />
We are a leader in applying people-centered<br />
learning approaches and holding the knowhow<br />
of becoming and being a learning organization.<br />
We combine topical expertise in the<br />
fields of public financial management, central<br />
banking, leadership for managing reforms<br />
and learning and knowledge ecosystems. We<br />
do this through innovative, participatory, and<br />
practical learning solutions. Our staff knows<br />
how to nurture and deepen learning among<br />
individuals, teams and institutions.<br />
OUR HISTORY<br />
The <strong>CEF</strong> is an international organization based<br />
in Ljubljana, Slovenia. We were established in<br />
2001 under the Stability Pact for South East<br />
Europe by the Slovenian Government, at the<br />
initiative of the Slovenian Ministry of Finance<br />
and in close cooperation with other ministries<br />
of finance of former Yugoslav countries and<br />
Albania. In 2015, following 14 successful<br />
years as a regional institution, we transitioned<br />
into an international organization.<br />
ABOUT THE <strong>CEF</strong>
8 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong> <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
9<br />
CHAIR OF THE <strong>CEF</strong> GOVERNING<br />
BOARD’S WELCOME<br />
DIRECTOR’S WELCOME<br />
Dear readers,<br />
Dear colleagues, partners and friends,<br />
It is with great pleasure and a sense of accomplishment<br />
that I present to you the <strong>CEF</strong>’s journey in <strong>2022</strong>. In the<br />
following pages, you will find a comprehensive overview<br />
of all the achievements, challenges and milestones in<br />
the past year. This report constitutes a testament to the<br />
hard work and dedication of the <strong>CEF</strong> team, as well as<br />
the continued support of all stakeholders. As we reflect<br />
on our progress, the <strong>CEF</strong> remains dedicated to share its<br />
story and demonstrate its commitment to transparency<br />
and excellence.<br />
The past year marked the end of the Covid-19 pandemic<br />
and unfortunately witnessed Russia’s brutal invasion<br />
of Ukraine. This tragic war has caused huge losses of<br />
human lives, mutilations and long-term social and economic<br />
consequences. Albania has stood side by side<br />
with the EU and other progressive forces in condemning<br />
the Russian aggression.<br />
For Albania, however, the year <strong>2022</strong> constitutes a strategic<br />
achievement in its efforts to join the European Union.<br />
The first intergovernmental conferences opening the accession<br />
negotiations with Albania and North Macedonia<br />
took place in July <strong>2022</strong>. This significant accomplishment<br />
marks a new page in our EU accession process. We are<br />
proud to state that Albania is already a confident partner<br />
of the EU in the Stabilization and Association Process for<br />
the Western Balkans. As stated by the European Council<br />
on December 14, 2021, the EU delegation welcomed<br />
Albania’s continued determination to advance the EU reform<br />
agenda, and deliver tangible and sustained results.<br />
To this end, the support and partnership of our donors<br />
have been a key factor in boosting our efforts towards<br />
the EU accession. In this view, the <strong>CEF</strong> has played an<br />
important role in the capacity building of public administration<br />
through learning and knowledge sharing. This<br />
partnership has turned to be crucial for development<br />
and integration.<br />
In <strong>2022</strong>, the <strong>CEF</strong> succeeded in delivering its objectives.<br />
The <strong>CEF</strong> supported and gave guidance to 2,366 participants<br />
from the region, turning its learning events into<br />
valuable learning experiences. Furthermore, the <strong>CEF</strong><br />
completed its project on Strengthening Line Ministries’<br />
Capacities to Assess Fiscal Implications of Structural<br />
Reforms, which included more than 90 learning initiatives<br />
and events, bringing together 1,500 people from<br />
the Western Balkans and Türkiye involved in the process<br />
of Economic Reform Programmes.<br />
These results were achieved due to the hard work and<br />
dedication of the <strong>CEF</strong> staff, donors and partners. We are<br />
privileged to be part of this community, which supports<br />
every day the countries of the region in reaching their<br />
objectives in the European integration process.<br />
Now that Albania’s mandate of chairing the <strong>CEF</strong> Governing<br />
Board comes to an end and Moldova will take over,<br />
many challenges still lie ahead. We should continue our<br />
work in promoting the values of learning in order to have<br />
stronger institutions capable of dealing with various<br />
challenges and objectives.<br />
I would like to wish Governor of the National Bank of<br />
Moldova a successful chairing, and to the <strong>CEF</strong> and all<br />
its members and partners many accomplishments in<br />
achieving our common goals in the upcoming year.<br />
Gent Sejko<br />
Governor of the Bank of Albania<br />
I am pleased to present you with the <strong>CEF</strong> <strong>Annual</strong> <strong>Report</strong><br />
for <strong>2022</strong>, highlighting our progress toward our vision to<br />
inspire public officials, both individuals and teams, in<br />
shaping institutional governance that drives successful<br />
economies and fair societies.<br />
We are proud to have successfully completed the Strengthening<br />
Line Ministries’ Capacities to Assess Fiscal Implications<br />
of Structural Reforms (FISR) project after three years<br />
and some months. The project included over 90 learning<br />
activities that connected more than 1,500 people from the<br />
Western Balkans and Türkiye, involved in the drafting of<br />
the Economic Reform Programmes (ERP). Our new Structural<br />
Reforms Better Integrated Within Fiscal Frameworks<br />
(FISR 2) project, also funded by the European Union, will<br />
continue to address the challenges around structural reforms<br />
in the region for the next four years.<br />
In line with our strategic objectives and value added, we<br />
have redefined four thematic areas of impact: Public Financial<br />
Management, Central Banking, Leadership for<br />
Managing Reforms, and Learning and Knowledge Ecosystems.<br />
The events covering the thematic area of Leadership<br />
for Managing Reforms have doubled the number<br />
of participants compared to 2021, indicating a clear<br />
need for this knowledge in the region.<br />
To efficiently address changes in our internal and external<br />
environment, we scaled up our focus on team dynamics<br />
and organizational development. We sharpened communication<br />
skills and improved as facilitators of progressive<br />
learning. This empowered us to offer high-quality learning<br />
experiences to our participants, and support them, their<br />
teams and institutions in reaching their potential. To this<br />
end, we also published our methodology on how public<br />
institutions can become learning organizations.<br />
We were able to achieve all this thanks to the outstanding<br />
support of many individuals, teams and institutions<br />
who share our vision: Governing Board and Advisory<br />
Board members, <strong>CEF</strong> Coordinators, donors and partners,<br />
and affiliated international and regional experts.<br />
Your expertise, guidance and support shaped our program<br />
into a valuable learning experience for 2,366 participants<br />
of various learning events. It also enabled us to<br />
enrich the <strong>CEF</strong> learning program by publishing 11 knowledge<br />
products. Your dedication and contribution made<br />
it possible to expand our work, providing more growth<br />
opportunities for participants. We are privileged to have<br />
such an incredible and wide community supporting us,<br />
and we look forward to working together also in the future<br />
to achieve our shared objectives.<br />
We’re pleased to see that the EU’s relationship with the<br />
region remains a top priority, despite many challenges.<br />
Europe is grappling with complex issues such as war, energy<br />
and consumer price inflation, and the need to lead<br />
the green and digital transitions. That is why it is important<br />
to attract talented individuals to public institutions<br />
to address these challenges. The goal is to create a just<br />
and inclusive society where everyone has equal opportunities<br />
to succeed. Capacity development is crucial for<br />
such progress.<br />
Through our work, we witness the vast variety of the region’s<br />
cultures as well as countless examples of shared<br />
values. We remain committed to innovating and adapting<br />
our program to meet the learning needs of the region, and<br />
to unite public officials in our journey of regional knowledge<br />
sharing and professional development, as we are<br />
convinced of our common future in united Europe.<br />
Jana Repanšek<br />
Director
BUSINESS<br />
REPORT
12 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
<strong>CEF</strong>’S FOCUS AND VALUE ADDED 13<br />
<strong>CEF</strong>’S FOCUS<br />
AND VALUE ADDED<br />
Over the years, the <strong>CEF</strong> has transformed into a learning organization and has<br />
developed its own methodology of six building blocks to foster growth and performance<br />
through: knowledge capturing, packaging and sharing; governance and<br />
culture; partnerships; communication; monitoring and evaluation; and funds for<br />
learning and knowledge sharing. We used this methodology also to present our<br />
<strong>2022</strong> accomplishments throughout this annual report.<br />
By practicing the principles of a learning organization, we have strengthened our<br />
competencies, which has helped us grow as an organization and increase the<br />
impact of our activities.<br />
We continuously monitor the strategic priorities of our focus institutions, while<br />
also examining the challenges and opportunities for South East Europe (SEE). Our<br />
focus has expanded to promoting continuous professional development through<br />
learning and knowledge sharing at the individual, team and institutional levels.<br />
With our people-centered learning approach, we empower public officials to be<br />
leaders of change and develop new approaches to engage with other institutions,<br />
civil society, academic, and business environments.<br />
FUNDS FOR<br />
LEARNING AND<br />
KNOWLEDGE<br />
SHARING<br />
COMMUNICATION<br />
ABOUT LEARNING<br />
GOVERNANCE<br />
AND CULTURE<br />
MONITORING<br />
AND<br />
EVALUATION<br />
KNOWLEDGE<br />
CAPTURING,<br />
PACKAGING AND<br />
SHARING<br />
PARTNERSHIPS
14 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN <strong>2022</strong> 15<br />
LEARNING AND<br />
KNOWLEDGE SHARING<br />
PROGRAM HIGHLIGHTS<br />
IN <strong>2022</strong><br />
105<br />
LEARNING & KNOWLEDGE<br />
SHARING ACTIVITIES<br />
61+33<br />
REGIONAL BENEFICIARY-<br />
SPECIFIC<br />
LEARNING & KNOWLEDGE<br />
SHARING EVENTS*<br />
We delivered more events than in 2021, however,<br />
the number of participants was lower.<br />
This can be attributed to a higher proportion<br />
of face-to-face events compared to the last<br />
two years. From 2020–2021, the Covid-19<br />
pandemic necessitated a shift towards more<br />
online events, resulting in generally higher<br />
levels of participation.<br />
11<br />
KNOWLEDGE PRODUCTS<br />
2,366<br />
PARTICIPANTS<br />
4,087<br />
PARTICIPANT LEARNING DAYS<br />
218<br />
LECTURING EXPERTS<br />
* The numbers do not include knowledge products
16 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN <strong>2022</strong> 17<br />
PARTICIPANTS<br />
LEARNING SPACES<br />
AND FORMATS<br />
Country Participants Learning days Participation costs (EUR)<br />
Albania 215 357.25 43,850<br />
We offer learning and knowledge sharing activities in the classroom (faceto-face),<br />
online, or combined. They are performed through a diverse set of<br />
formats: blended/hybrid learning, certification module, conference, knowledge<br />
product, meeting, online course, on-the-job training, study visit,<br />
visibility action, webinar, workshop.<br />
Bosnia and Herzegovina 253 440.25 13,350<br />
Bulgaria 53 90.50 8,800<br />
Croatia 64 115.50 17,850<br />
Kosovo 198 324.50 35,300<br />
Moldova 113 152.25 10,350<br />
Montenegro 115 192.50 13,950<br />
North Macedonia 398 878.50 31,350<br />
Romania 72 109.25 8,050<br />
47 39 8<br />
FACE-TO-FACE ONLINE BLENDED & HYBRID<br />
Serbia 191 315.00 10,650<br />
Slovenia 126 130.50 0,000<br />
Türkiye 294 424.25 4,200<br />
<strong>CEF</strong> constituency 2,092 3,530.25 197,700<br />
Other countries* 274 556.75 72,850<br />
TOTAL 2,366 4,087.00 270,550<br />
Participation costs (travel and accommodation) for in-person events were either financed through<br />
project funding or by a sponsoring institution (employer or donor). For in-kind attendance, costs<br />
are estimated at EUR 200 per participant per day plus EUR 500 for airfare. In-kind attendance<br />
from institutions situated in the country of the event location and for participants of online<br />
learning events is estimated at nil travel and accommodation cost. Numbers are rounded.<br />
OTHER COUNTRIES: Armenia, Austria, Azerbaijan, Belgium, Bolivia, Congo, Czech Republic,<br />
Egypt, Estonia, Ethiopia, France, Georgia, Ghana, Greece, Hungary, India, Israel, Italy, Jordan,<br />
Kazakhstan, Kyrgyz Republic, Latvia, Lebanon, Lesotho, Lithuania, Luxembourg, Malawi, Malta,<br />
Mauritius, Mongolia, Namibia, the Netherlands, Nigeria, Paraguay, Philippines, Poland, Russian<br />
Federation, Slovakia, South Africa, Sri Lanka, Tunisia, Uganda, Ukraine, United Arab Emirates,<br />
and the United Kingdom.
18 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN <strong>2022</strong> 19<br />
PROJECTS<br />
DONORS<br />
PROJECTS / DURATION<br />
Fiscal Implications of Structural Reforms (FISR) /<br />
2019–<strong>2022</strong><br />
Structural Reforms Better Integrated within Fiscal<br />
Frameworks (FISR 2) / <strong>2022</strong>–2026<br />
Public Accountants Certification Training at diploma<br />
level, North Macedonia (PACT MKD (L2)) / <strong>2022</strong>–2024<br />
Efficient Public Sector Asset Management (EPSAM) /<br />
<strong>2022</strong>–2024<br />
Strengthening Domestic Revenue Mobilization for<br />
Sustainable Development (DRM) / <strong>2022</strong>–2024<br />
The learning<br />
and knowledge<br />
sharing activities<br />
were part of<br />
eight capacity<br />
development<br />
projects,<br />
supported by<br />
six donors.<br />
Public Accountants Certification Training at diploma<br />
level, North Macedonia (PACT MKD, L2) / <strong>2022</strong>–2024<br />
Tax Policy and Administration (TPA) / <strong>2022</strong><br />
Public Internal Financial Control (PIFC) / <strong>2022</strong><br />
Strengthening Capacities in Providing Sound, Resilient<br />
and Developed Macroeconomic and Financial<br />
Environment (MFE) / <strong>2022</strong><br />
Ministry of Finance of Slovenia provides core funding<br />
to the <strong>CEF</strong>. This funding provides us with resources to<br />
develop our institutional capacity, new projects and<br />
complementary funding of several projects (partially)<br />
funded by donors.
20 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN <strong>2022</strong> 21<br />
THE FISR PROJECTS<br />
THE END OF ONE JOURNEY AND THE START OF A NEW ONE<br />
We successfully concluded the FISR project, which enhanced line ministries’ capacity to<br />
assess the fiscal implications of structural reforms. The three-year project included the<br />
following learning areas: costing, budgeting, enabling environments, transparency, quality of<br />
documents. We established a network of regional experts with 34 members from the region,<br />
including 20 from line ministries, and created a repository of webinars in our Online Learning<br />
Campus and our YouTube channel.<br />
150+<br />
learning days<br />
3,000+<br />
participations<br />
by 1,500+ individuals<br />
400+<br />
experts lecturing<br />
at FISR learning events<br />
FISR PROJECT OVERVIEW<br />
DURATION<br />
2019–<strong>2022</strong><br />
20+ 20+ 20+<br />
value creation stories<br />
collected<br />
knowledge products<br />
(including videos)<br />
digital stories<br />
THE FISR PROJECT STRENGTHENED<br />
FISR 2 PROJECT OVERVIEW<br />
ANALYTICAL AND COSTING<br />
CAPACITIES<br />
of line ministries to improve<br />
their ability to comprehensively<br />
assess the fiscal implications of<br />
structural reforms.<br />
INTER-INSTITUTIONAL<br />
COORDINATION<br />
within respective line ministries, as<br />
well as between the line ministries<br />
and the ministry of finance for<br />
successful reform implementation.<br />
CROSS-NATIONAL<br />
COOPERATION<br />
and exchange of good practices<br />
among public officials across<br />
the region.<br />
In June <strong>2022</strong>, we started the four-year multi-beneficiary capacity development project Structural<br />
Reforms Better Integrated Within Fiscal Frameworks (FISR 2), funded by the EU. The project<br />
aims to strengthen the integration of structural reforms within fiscal frameworks in ERPs for<br />
Western Balkans and Türkiye.<br />
DURATION<br />
<strong>2022</strong>–2026<br />
HIGHLIGHTS<br />
<strong>2022</strong> DELIVERABLES<br />
50+<br />
40+<br />
6+<br />
725 14 17 1<br />
local trainings<br />
delivered online or in classroom<br />
regional peer-to-peer trainings<br />
delivered online or in classroom<br />
regional policy dialogues +<br />
annual ERP launch meetings<br />
participants<br />
regional peer-topeer<br />
trainings<br />
local trainings<br />
knowledge product: Economic Reform<br />
Programme (ERP) at a Glance
22 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
LEARNING AND KNOWLEDGE SHARING PROGRAM HIGHLIGHTS IN <strong>2022</strong> 23<br />
VISUAL SUMMARY CREATED AT THE REGIONAL POLICY DIALOGUE NEW THINKING ON ECONOMIC GROWTH
24 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
KNOWLEDGE CAPTURING, PACKAGING AND SHARING 25<br />
KNOWLEDGE<br />
CAPTURING, PACKAGING<br />
AND SHARING<br />
To provide a highquality<br />
learning<br />
experience for<br />
public officials<br />
in SEE, we<br />
focus on four<br />
thematic areas:<br />
Public Financial<br />
Management,<br />
Central Banking,<br />
Leadership<br />
for Managing<br />
Reforms, and<br />
Learning and<br />
Knowledge<br />
Ecosystems.<br />
The first two areas address the core functions of relevant public institutions, while Leadership for<br />
Managing Reforms covers competencies for policy making and coordination. It is also embedded in<br />
our Public Financial Management and Central Banking topics or offered as stand-alone activities. Our<br />
specific know-how in Learning and Knowledge Ecosystems is integrated across our entire program to<br />
help learners become learning organizations and adopt our approaches.<br />
THE <strong>2022</strong> LEARNING AND KNOWLEDGE SHARING PROGRAM INCLUDED LEARNING EVENTS,<br />
NETWORKING ACTIVITIES AND KNOWLEDGE PRODUCTS ON THE FOLLOWING TOPICS<br />
ACCOUNTING<br />
AND FINANCIAL<br />
REPORTING<br />
AUDITING<br />
DATA AND<br />
ANALYSIS<br />
FINANCIAL<br />
STABILITY AND<br />
PRUDENTIAL<br />
SUPERVISION<br />
FISCAL POLICY<br />
MAKING<br />
LEADERSHIP<br />
FOR MANAGING<br />
REFORMS<br />
LEARNING AND<br />
KNOWLEDGE<br />
ECOSYSTEM<br />
MONETARY<br />
POLICY MAKING<br />
AND FINANCIAL<br />
MARKETS<br />
SECTORAL<br />
POLICY<br />
MAKING<br />
TAX AND<br />
REVENUE<br />
COLLECTION<br />
<strong>CEF</strong><br />
GOVERNANCE<br />
AND OUTREACH
26 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
KNOWLEDGE CAPTURING, PACKAGING AND SHARING 27<br />
THE ROLE OF ACCOUNTING AND FINANCIAL REPORTING<br />
IN PROMOTING PUBLIC SECTOR TRANSPARENCY<br />
ADOPTING NEW APPROACHES AND TOOLS IN<br />
PUBLIC SECTOR AUDITING<br />
In <strong>2022</strong>, our efforts resulted in significant progress towards strengthening<br />
the roles of public sector accountants in the preparation and delivery of the<br />
accounting reforms, their cooperation with other stakeholders in implementing<br />
public sector reforms, and better public asset management.<br />
In <strong>2022</strong>, we focused on achieving results through strengthening support for<br />
Central Harmonization Units (CHU) and promoting good governance in public<br />
sector institutions. We placed particular emphasis on the implementation of<br />
risk management, and budget reforms and their managerial implications.<br />
Under the PACT program, I had<br />
the opportunity to establish<br />
both professional and friendly<br />
relations with a large network<br />
of inspiring, creative, and dedicated<br />
professionals, with whom<br />
I hope to continue successful<br />
and profound cooperation in<br />
the future.<br />
SASHA SASHEK GOSHEVA<br />
Director of Sector for Financial<br />
Affairs at the Customs<br />
Administration,<br />
North Macedonia<br />
We started the three-year Efficient Public Sector Asset Management (EPSAM)<br />
program to improve awareness and knowledge of public asset management.<br />
We mapped out relevant stakeholders among public officials and institutions<br />
working on public sector asset management in SEE, establishing an understanding<br />
of the relationship between an asset registry and accounting for<br />
assets.<br />
We continued to partner with Chartered Institute of Public Finance and<br />
Accountancy (CIPFA), providing support for the professional development of<br />
public accountants in North Macedonia. We launched the Public Accountants<br />
Certification Training (PACT) on level two or diploma level, alongside the<br />
development of a group of local mentors to support the training. At present,<br />
we are working towards a sustainable uptake of the PACT program by local<br />
institutions.<br />
In addition, we inspired accountants from central banks to improve their financial<br />
planning and control functions. Our efforts aimed to increase financial<br />
accountability and transparency. We also facilitated the exchange of<br />
knowledge on how to comply with external financial reporting requirements.<br />
Our work with CHUs explored their role in public financial management<br />
reforms and addressed institutional and individual capacities. We inspired<br />
reflection and knowledge sharing on the position and structure of CHUs, their<br />
roles, and cooperation with stakeholders. These efforts yielded valuable new<br />
insights, and examples of good practices presented by countries will serve<br />
as a basis for updating the existing risk management guidelines. This will<br />
enable CHUs to play a more visible and effective role in PFM reforms.<br />
We also supported good governance of public sector institutions by<br />
promoting the use of risk management to manage uncertainties, including in<br />
structural reforms. The focus was on practical implementation, and tools and<br />
approaches for managing risks.<br />
We witnessed several positive developments in public sector auditing. Many<br />
auditors are adopting new approaches and tools, with IT auditing becoming<br />
one of the most important types of auditing. Our online course was designed<br />
to encourage internal auditors to be more prudent in assessing IT risks and<br />
confident in trying out (new) IT audit tools.<br />
For instance, in the IT Auditing:<br />
Practical Guidance online<br />
course we discussed recommendations<br />
on how to use IT auditing<br />
methodologies and controls,<br />
and how to select the right<br />
questions during the design of<br />
questionnaires for auditing. I am<br />
not an auditor but I have been<br />
audited many times, and this<br />
course made me better understand<br />
the importance of performing<br />
audits and how it can<br />
help an organization improve<br />
the security of information and<br />
reduce the related risks.<br />
SEDAT SHEHU<br />
Manager of the IT<br />
Infrastructure Division at the<br />
Ministry of Finance, Labor and<br />
Transfers, Kosovo
28 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
KNOWLEDGE CAPTURING, PACKAGING AND SHARING 29<br />
My learning experience was rich, challenging, and<br />
very engaging. The course was well structured and<br />
gave a comprehensive and in-depth overview of the<br />
covered topics, including also hands-on exercises<br />
and follow-up discussions. Moreover, the course<br />
provided insights into new developments in the<br />
estimation of non-linear macroeconomic models,<br />
especially taking into account the zero lower bound<br />
and occasionally binding constraints. The course<br />
helped me acquire technical skills not only to design<br />
but also solve and estimate non-linear effects<br />
in DSGE models.<br />
KNARIK AYVAZYAN<br />
Economist (Macroeconomics) at IMF, Monetary<br />
and Capital Markets Department (MCM)<br />
ENHANCING DATA AND ANALYSIS<br />
CAPACITIES TO EMPOWER DECISION<br />
MAKING<br />
In addressing the data compilation and analysis, we<br />
looked for recommendations and solutions in areas<br />
such as revenue data analysis and macroeconomic<br />
modeling. We integrated them into the program to support<br />
the learning process of practitioners from various<br />
institutions, including central banks and tax administrations.<br />
We thus helped raise awareness of the critical<br />
role of high-quality data, especially for departments<br />
dealing with analytics, modeling and forecasting.<br />
In <strong>2022</strong>, we continued to offer learning opportunities<br />
related to informed decision making, especially for the<br />
ministries of finance and line ministries. We recognized<br />
that ministries needed to develop their internal capacities<br />
in the area of impact assessment and set key performance<br />
indicators to efficiently plan and implement<br />
numerous structural reforms. To advance these objectives,<br />
we designed learning initiatives focused on developing<br />
capacities in these areas, sharing good practices<br />
and experiences, and creating knowledge products<br />
on monitoring and implementing structural reforms<br />
through data and analysis points of view.<br />
IMPROVING FISCAL POLICY MAKING<br />
A large part of our efforts related to fiscal policy making is focused on strengthening the tools and<br />
procedures that support revenue collection and government expenditure and provide insights<br />
into budget management tools.<br />
In <strong>2022</strong>, we collaborated with the IMF Fiscal Affairs Department (FAD) to improve cash and debt<br />
management functions through a regional online course. We put special emphasis on enhancing<br />
the coordination of cash and debt management units and strengthening forecasting for finance<br />
and central bank officials.<br />
We completed the FISR project. As a result, we improved beneficiaries’ ability to estimate the<br />
costs of the structural reform measures that were included in the ERPs. We also increased awareness<br />
of good practices, and created an online library that includes a wealth of learning resources.<br />
We launched a follow-up project, FISR 2, aimed at strengthening the integration of structural<br />
reforms into the fiscal frameworks of six countries of Western Balkans and Türkiye. Over the next<br />
four years, we will support those countries in tackling challenges in the ERP preparation process.<br />
We do this by promoting learning from already existing practices and facilitating discussions between<br />
ERP coordination teams and the European Commission (EC), for example about amendments<br />
to the ERP Guidance.<br />
To help the ERP working groups establish well-integrated planning and budgeting of public expenditures<br />
for the 2023–2025 ERPs, we delivered seven beneficiary-specific events, where structural<br />
reform costs and funding sources were aligned with methodological requests. We published<br />
an instructional leaflet Economic Reform Programme (ERP) at a Glance to meet the demand for<br />
inter-governmental policy coordination.
30 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
KNOWLEDGE CAPTURING, PACKAGING AND SHARING 31<br />
What proved to be a challenge<br />
was the identification of key performance<br />
indicators and the impact<br />
assessment of the reform<br />
measures. So, we think that<br />
FISR 2 is just tailor-made to answer<br />
these needs. The interactive<br />
and participatory learning<br />
activities, which include not only<br />
the design of structural reforms<br />
and monitoring their implementation<br />
but also strategic planning<br />
and budgeting systems,<br />
coordination, and collaboration<br />
among institutions, provides for<br />
expertise that helps us address<br />
the challenges that we face in<br />
the ERP process.<br />
VESNA CVETANOVA<br />
Head of the Macroeconomic<br />
Policy Department at the<br />
Ministry of Finance,<br />
North Macedonia<br />
SUPPORTING FISCAL STABILITY AND<br />
SUCCESSFUL SECTORAL POLICY MAKING<br />
With our program, we strengthened line ministries’ capacities<br />
to articulate and analyze sector-specific policies and<br />
integrate them into budgetary planning frameworks, with<br />
a particular focus on structural reforms. Our efforts also<br />
aimed to improve coordination and strengthen relationships<br />
between line ministries, ministries of finance, and<br />
other central government planning bodies.<br />
We reviewed how to manage uncertainty related to structural<br />
reforms to increase fiscal stability and the likelihood<br />
of successful implementation of sectoral policies. We promoted<br />
structured discussions on sector-specific policies<br />
and strategies to better align them with key structural<br />
reforms and improve the overall strategic planning and<br />
budgeting systems.<br />
We organized several meetings of the Network of Regional<br />
Experts for Structural Reforms to exchange ideas and<br />
practices that supported policy planning and coordination<br />
processes.<br />
STRENGTHENING KNOWLEDGE SHARING IN<br />
FINANCIAL STABILITY AND PRUDENTIAL SUPERVISION<br />
To promote our beneficiary institutions, we continued to engage their experts<br />
to present and share their knowledge. Their participation increased in almost<br />
all central banking learning activities in <strong>2022</strong>. We also delivered a Training of<br />
Trainers program at the National Bank of the Republic of North Macedonia to<br />
empower their experts in financial stability and prudential supervision as well<br />
as some other central banking areas. It was designed to provide them with<br />
the necessary skills to better prepare and deliver presentations and share<br />
knowledge. The purpose was also to identify and train experts for future<br />
knowledge sharing activities.<br />
We also helped establish a regional knowledge sharing community of senior<br />
banking regulators and supervisors. The members agreed to meet semiannually,<br />
focusing on a set of thematic fields.<br />
In the area of strengthening financial stability, we focused on stress testing,<br />
practically from scenario building to the interpretation of results. Participants<br />
investigated different types of risks that can be identified by means of stress<br />
testing, and learned to assess the capacities of banks to withstand shocks.<br />
At the On-site Banking Supervision workshop, we supplemented case studies<br />
with sessions on essential skills for better work performance, such as presenting<br />
findings, arguing results, and delivering negative news.
32 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
KNOWLEDGE CAPTURING, PACKAGING AND SHARING 33<br />
EXPLORING GOOD PRACTICES IN<br />
MONETARY POLICY MAKING AND<br />
FINANCIAL MARKETS<br />
One of our outstanding events in <strong>2022</strong> was the Government<br />
Cash Management workshop, where we invited treasurers of<br />
ministries of finance and central bankers to exchange good<br />
practices on treasury single accounts and other solutions<br />
for structuring government bank assets. It was highlighted<br />
how coordination between the two authorities contributes<br />
to good management of government bank assets’ balances<br />
and forecasting, which is important for both institutions in<br />
performing their mandates.<br />
In the area of payment and settlement systems, we explored<br />
the existing European systems (TARGET2, T2S, TIPS) and<br />
devoted special attention to the recent developments that<br />
gave a boost to payment innovations, financial technologies<br />
and other newer forms of payment services. We also learned<br />
how opportunities in innovations represent potential threats<br />
that regulators need to address. We discussed payment<br />
innovation and financial inclusion topics with ministries<br />
of finance, central banks and other agencies involved in<br />
promoting financial inclusion and literacy.<br />
INNOVATIVE METHODS IN<br />
LEADERSHIP FOR MANAGING REFORMS<br />
We implemented new approaches in the thematic area of Leadership for<br />
Managing Reforms, including successful team planning events, coaching and<br />
inspiring leadership, which was well received by the participants.<br />
We supported ERP teams in Albania, Bosnia and Herzegovina, North Macedonia<br />
and Türkiye with the Team Planning for the ERP workshop – an experiential<br />
event intended to engage the key participants in the ERP process early on,<br />
in the planning phase. These pilot events with selected ERP teams proved as<br />
very effective. For the majority of participants they had a positive impact on<br />
the quality of the ERP process in <strong>2022</strong> and increased clarity in their role in the<br />
process. They found the events motivational, action-oriented, and eye-opening.<br />
The event focusing on ERP and Instrument for Pre-accession Assistance (IPA)<br />
Coordinators supported public officials in becoming confident and networked<br />
leaders, linking policy measures of the ERP with IPA III and collaboration<br />
models to increase efficiency in coordination. Participants in the Policy Drafting<br />
and Negotiations workshop improved their skills in writing structural reform<br />
measures in the ERP document and developed negotiation skills for unified<br />
institutional positions. The webinar How to Put Your ERP into an Infographic<br />
showcased how ERPs could be made visually informative and more easily<br />
understandable by using non-technical language.
34 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
KNOWLEDGE CAPTURING, PACKAGING AND SHARING 35<br />
STRENGTHENING<br />
LEARNING AND KNOWLEDGE ECOSYSTEMS<br />
Our strategic focus is to support institutions become learning<br />
organizations, which is why we have mobilized more<br />
resources for providing learning opportunities to support<br />
these endeavors. The expressed regional interest in learning<br />
methodologies, knowledge management and the concept<br />
of learning organizations gave us the confidence to stream<br />
these efforts through a new thematic area and topic – Learning<br />
and Knowledge Ecosystems. It is embedded across our<br />
entire program, helping learners to understand and adopt<br />
the <strong>CEF</strong>’s learning and knowledge sharing approaches, and<br />
institutions to become learning organizations.<br />
In <strong>2022</strong>, we addressed how to support public institutions to<br />
deliver on their mandate at a conference for the <strong>CEF</strong> Governing<br />
Board members and Coordinators. We engaged with the<br />
<strong>CEF</strong> Coordinators also through training of trainers on knowledge<br />
management in public institutions. In addition, we published<br />
our own methodology on how public institutions can<br />
become learning organizations and facilitated several related<br />
discussions with senior officials.<br />
Learning opportunities were people-focused, knowledge-centered<br />
and innovative, dealing with learning methodologies in<br />
physical and online environments and the importance of systematic<br />
institutional capacity development.<br />
BUILDING TRUST AND SKILLS IN<br />
TAX ADMINISTRATIONS<br />
We mapped out best practices for effective knowledge<br />
sharing in tax administrations, emphasizing the mental<br />
model change necessary for positive impacts on employees.<br />
We explored how a trusting relationship between<br />
tax administrations and taxpayers can tackle the challenge<br />
of a growing tax debt in spite of improvements in<br />
tax collection. Our discussions focused on building both,<br />
external and internal trust resulting from good internal<br />
culture. One such example was the workshop on Improving<br />
Tax Debt Management in Kosovo, organized together<br />
with the Tax Administration of Kosovo and and hosted by<br />
Kosovo’s Prime Minister and Minister of Finance.<br />
Our learning program also covered learning about digital<br />
tools that contribute to more effective detection and<br />
prevention of tax fraud, as well as exploring how to plan<br />
and conduct tax audits by using indirect audit methods.<br />
With the event Needs for Quality Data Analysis in Domestic<br />
Revenue Mobilization we kicked-off a three-year<br />
project Domestic Revenue Mobilization (DRM) highlighting<br />
the importance of DRM in achieving the Sustainable<br />
Development Goals (SDGs). Participants learned about<br />
the importance of international data exchange, how to<br />
make sense of abundance of data and how to transition<br />
to evidence-based policymaking.<br />
Some countries have really good legal regulations<br />
on indirect tax methods and some of them don’t,<br />
including the Federation of Bosnia and Herzegovina.<br />
I think that the information on good practices<br />
gained at this event will contribute to a better understanding<br />
of the importance of indirect methods,<br />
which I shared also with my colleagues. Although<br />
we use some of the indirect methods in our work,<br />
as far as our legislation allows, it is necessary to<br />
expand it and the experience I gained at this event<br />
can contribute to that.<br />
IRNESA HAŠIMBEGOVIĆ<br />
Tax Administration of the Federation of Bosnia and<br />
Herzegovina<br />
ASSURING GOOD<br />
GOVERNANCE OF THE <strong>CEF</strong><br />
AND OUTREACH<br />
Through many formal and informal meetings and networking<br />
we nurtured partnerships with our network of<br />
partners and embassies of their respective countries in<br />
Slovenia.<br />
We held regular meetings of the Governing and the Advisory<br />
Boards and with the <strong>CEF</strong> Coordinators. You can find<br />
more information in the Governance and Culture chapter<br />
of this <strong>Annual</strong> <strong>Report</strong>.
36 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
LIST OF LEARNING AND KNOWLEDGE SHARING ACTIVITIES IN <strong>2022</strong> 37<br />
LIST OF LEARNING AND<br />
KNOWLEDGE SHARING<br />
ACTIVITIES IN <strong>2022</strong><br />
TITLE*<br />
An Experiential Laboratory on Sound, Learning and Change<br />
<strong>CEF</strong> Tax Coordinators’ Meeting: Developing Knowledge Sharing Culture<br />
Auditing Central Bank Governance<br />
New Year Gathering for <strong>CEF</strong> Partners and Friends<br />
Towards Integrating Structural Reforms and Fiscal Framework in Bosnia<br />
and Herzegovina - Extension<br />
Meeting with <strong>CEF</strong> Coordinators at Central Banks<br />
Integration of Structural Reforms and Fiscal Frameworks<br />
Payment Innovations and Financial Inclusion<br />
Macroeconomic Modeling for Open Economies 2<br />
Cyber Security Risk Supervision<br />
Facilitation (poster)<br />
Cash Management: Improving Planning and Use of Public Resources<br />
PACT MKD (L2): Training of Trainers on Audit and Assurance<br />
Everything You Always Wanted to Know About Structural Reforms<br />
From Feedback to Feed Forward (poster)<br />
Tax Fraud in Digital Environment<br />
Regional Networking for Structural Reforms<br />
Knowledge Sharing: National Bank of the Republic of North Macedonia<br />
and National Bank of Moldova<br />
Integrating Structural Reforms into Budgets<br />
Anti-Money Laundering<br />
PACT MKD3 (L2): Opening Ceremony<br />
PACT MKD (L2): Training of Trainers on Teaching Methodology<br />
Fiscal Implications of Structural Reforms Project in a Nutshell<br />
How Online Learning and Knowledge Sharing Work at <strong>CEF</strong><br />
Monitoring the Implementation of Structural Reforms - Theory and Practice<br />
Risk Management Beyond Theory<br />
Knowledge Sharing: National Bank of the Republic of North Macedonia<br />
and Sveriges Riksbank<br />
ReSPA Working Groups - Study Visit to <strong>CEF</strong><br />
Government Cash Management: Coordination of Treasury and Central Bank<br />
Strengthening Tax Auditors’ Capability: Indirect Audit Methods<br />
Training of Trainers for the National Bank of North Macedonia<br />
How Public Institutions Can Become Learning Organizations<br />
Online Meeting of the <strong>CEF</strong> Advisory Board<br />
Knowledge Sharing: National Bank of the Republic of North Macedonia<br />
and National Bank of Belgium<br />
LEARNING FORMAT<br />
Workshop<br />
Online meeting<br />
Webinar<br />
Partners’ meeting<br />
Blended learning<br />
Online meeting<br />
Knowledge product<br />
Webinar<br />
Online workshop<br />
Online workshop<br />
Knowledge product<br />
Online workshop<br />
Online workshop<br />
Knowledge product<br />
Knowledge product<br />
Online workshop<br />
Workshop<br />
Meeting<br />
Hybrid event in Istanbul, Türkiye<br />
Online workshop<br />
Project opening in Skopje,<br />
North Macedonia<br />
Blended learning in Skopje,<br />
North Macedonia<br />
Knowledge product<br />
Knowledge product<br />
Knowledge product<br />
Workshop<br />
Meeting<br />
Study visit<br />
Hybrid workshop<br />
Workshop<br />
Workshop in Skopje,<br />
North Macedonia<br />
Knowledge product<br />
Online meeting<br />
Online meeting<br />
* Sorted in chronological order of delivery dates.
38 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
LIST OF LEARNING AND KNOWLEDGE SHARING ACTIVITIES IN <strong>2022</strong> 39<br />
TITLE*<br />
LEARNING FORMAT<br />
TITLE*<br />
LEARNING FORMAT<br />
Training of Trainers: Learning Methodologies and Tools<br />
Banking Regulation and Supervision – Coordination Meeting<br />
Public Sector Asset Management and EU Integration<br />
How to Write a Reflective Learning Blog<br />
Update on Auditing Risk Management<br />
Tips and Tricks on Doing Risk Management<br />
Impact Assessment of Structural Reforms for Policy Experts<br />
Central Bank Liquidity Forecasting<br />
Building Trust in Tax Administrations<br />
Knowledge Sharing: Albanian School of Public Administration,<br />
Human Resources Management Authority of Montenegro and the <strong>CEF</strong><br />
Knowledge Sharing within the Network of Regional Experts<br />
<strong>Annual</strong> Meeting of the <strong>CEF</strong> Governing Board<br />
<strong>CEF</strong> Forum <strong>2022</strong>: Strong Institutions Deliver on Their Mandate<br />
<strong>CEF</strong> Forum <strong>2022</strong>: Training of Trainers: Knowledge Management<br />
in Public Institutions<br />
Launch of the ERP 2023–2025<br />
Advancing the Digitalization of the ERP Preparation Process<br />
Institutional Capacity Development for Better Reform Programs: Albania<br />
Making Government Services Work Better for Citizens<br />
Team Planning for the ERP: Bosnia and Herzegovina<br />
Team Planning for the ERP: Türkiye<br />
Team Planning for the ERP: North Macedonia<br />
Team Planning for the ERP: Albania<br />
IT Auditing: Practical Guidance<br />
PACT MKD (L2): Training of Trainers on Public Sector Financial <strong>Report</strong>ing<br />
Management of EU Funds<br />
<strong>CEF</strong> Tax Coordinators’ Meeting: Developing Knowledge Sharing Culture<br />
On-Site Banking Supervision<br />
Monetary Policy Implementation in the Eurosystem<br />
Training of Trainers: Online Learning Methodologies and Tools<br />
ERP and IPA Coordinators as Inspired Leaders<br />
Policy Drafting and Negotiation<br />
Accounting and Financial <strong>Report</strong>ing in Central Banks<br />
PACT MKD (L2): Audit and Assurance<br />
Financial Management and Control: Connectivity with Budget Systems<br />
Workshop in Skopje,<br />
North Macedonia<br />
Online meeting<br />
Webinar<br />
Webinar<br />
Webinar<br />
Knowledge product<br />
Workshop<br />
Webinar<br />
Workshop<br />
Online meeting<br />
Online meeting<br />
Meeting<br />
Conference<br />
Blended learning<br />
Online workshop<br />
Knowledge product<br />
Meetings in Tirana, Albania<br />
Hybrid event in Tirana, Albania<br />
Workshop in Sarajevo,<br />
Bosnia and Herzegovina<br />
Workshop in Ankara, Türkiye<br />
Workshop n Skopje,<br />
North Macedonia<br />
Workshop in Tirana, Albania<br />
Workshop<br />
Meetings in Skopje,<br />
North Macedonia<br />
Study visit of the Serbian<br />
delegation to Slovenia<br />
Online meeting<br />
Hybrid event<br />
Webinar<br />
Online workshop<br />
Workshop at Bled, Slovenia<br />
Hybrid event<br />
Workshop<br />
Workshop<br />
Online workshop<br />
19th Meeting of the <strong>CEF</strong> Governing Board<br />
Programming Structural Reforms for the ERP 2023–2025: Serbia<br />
Public Institutions as Learning Organizations<br />
<strong>Annual</strong> Meeting of the <strong>CEF</strong> Advisory Board<br />
Training of Trainers: Knowledge Sharing and Presentation Skills<br />
Institutional Capacity Development for Better Reform Programs:<br />
North Macedonia<br />
BRS Knowledge Sharing Session<br />
Key Performance Indicators for Structural Reforms<br />
Strategic Use of Structural Reforms<br />
How to Put Your ERP into an Infographic<br />
Programming Structural Reforms for the ERP 2023-2025: Albania<br />
Programming Structural Reforms for the ERP 2023–2025: North Macedonia<br />
Improving Tax Debt Management<br />
Programming Structural Reforms for the ERP 2023-2025: Bosnia and<br />
Herzegovina<br />
Exchange of Good Practices in KPIs<br />
The Role of Central Harmonization Units in PFM Reforms<br />
Programming Structural Reforms for the ERP 2023–2025: Kosovo*<br />
Institutional Capacity Development for Better Reform Programs: Türkiye<br />
Institutional Capacity Development for Better Reform Programs: Montenegro<br />
Data Analysis in Domestic Revenue Mobilization<br />
Payment and Settlement Systems<br />
Programming Structural Reforms for the ERP 2023–2025: Türkiye<br />
PACT MKD (L2): Training of Trainers on Financial Management<br />
Recording Fixed Assets in Registries and Capturing Them in Financial <strong>Report</strong>s<br />
Institutional Capacity Development for Better Reform Programs:<br />
Bosnia and Herzegovina<br />
Knowledge Sharing within the Network of Regional Experts<br />
PACT MKD (L2): Public Sector Financial <strong>Report</strong>ing<br />
PACT MKD (L2): Training of Trainers on Business and Change Management<br />
Financial Stability and Stress Testing<br />
Managing Uncertainty for Structural Reforms<br />
Breakfast with Embassies<br />
Institutional Capacity Development for Better Reform Programs: Kosovo*<br />
Programming Structural Reforms for the ERP 2023–2025: Montenegro<br />
Training of Trainers: Knowledge Sharing Methodologies, Tools, and Skills<br />
Study Visit of the Ministry of Finance of North Macedonia to the <strong>CEF</strong>:<br />
Supporting Localization of PACT<br />
Coaching for ERP Coordinators<br />
Economic Reform Programme at a Glance<br />
Meeting<br />
Workshop<br />
Webinar<br />
Meeting<br />
Workshop<br />
Meetings in Skopje,<br />
North Macedonia<br />
Online meeting<br />
Workshop<br />
Workshop<br />
Webinar<br />
Workshop in Tirana, Albania<br />
Workshop<br />
Workshop in Prishtina, Kosovo<br />
Workshop in Mostar,<br />
Bosnia and Herzegovina<br />
Webinar<br />
Workshop<br />
Workshop in Prishtina, Kosovo<br />
Online meeting<br />
Meeting in Podgorica, Montenegro<br />
Workshop<br />
Workshop<br />
Online workshop<br />
Workshop<br />
Online workshop<br />
Online meeting<br />
Online meeting<br />
Workshop<br />
Workshop<br />
Workshop<br />
Workshop<br />
Meeting<br />
Online meetings<br />
Workshop<br />
Workshop<br />
Study visit of delegation from<br />
North Macedonia to <strong>CEF</strong><br />
Coaching meetings<br />
Knowledge product<br />
* Sorted in chronological order of delivery dates.<br />
* Sorted in chronological order of delivery dates.
40 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
GOVERNANCE AND CULTURE 41<br />
GOVERNANCE<br />
AND CULTURE<br />
GOVERNING<br />
BOARD<br />
The <strong>CEF</strong> Governing Board is responsible for guiding the<br />
organization’s strategic direction and program activities,<br />
as well as reviewing progress and financial statements. It<br />
is an independent and autonomous decision-making body<br />
that includes also three representatives from the Advisory<br />
Board.<br />
The <strong>CEF</strong> Governing Board met at an annual meeting at the<br />
<strong>CEF</strong> headquarters in Ljubljana. Andrej Šircelj, Minister of<br />
Finance of Slovenia, and his successor in this position,<br />
Klemen Boštjančič, ended Slovenia’s one-year term of<br />
chairing the <strong>CEF</strong> Governing Board and passed the role to<br />
Gent Sejko, Governor of the Bank of Albania. In <strong>2022</strong>, the<br />
Governing Board met also by correspondence.<br />
The <strong>CEF</strong> Governing<br />
Board is composed<br />
of ministers of<br />
finance and/or<br />
governors of central<br />
banks from the<br />
following member<br />
countries: Albania,<br />
Bulgaria, Moldova,<br />
Montenegro,<br />
North Macedonia,<br />
Romania, and<br />
Slovenia.<br />
<strong>CEF</strong> GOVERNING BOARD MEMBERS (AS AT APRIL 30, 2023)<br />
Delina Ibrahimaj, Minister<br />
Gent Sejko, Governor<br />
Rositza Velkova-Jeleva, Minister<br />
Fatmir Besimi, Minister<br />
Anita Angelovska Bezhoska, Governor<br />
Veronica Sireteanu, Minister<br />
Octavian Armaşu, Governor<br />
Aleksandar Damjanović, Minister<br />
Radoje Žugić, Governor<br />
Adrian Câciu, Minister<br />
Mugur Isărescu, Governor<br />
Klemen Boštjančič, Minister<br />
Boštjan Vasle, Governor<br />
Mateja Vraničar Erman, Secretary<br />
Birger Nerré<br />
Martin Polónyi, Director General<br />
Ministry of Finance and Economy, Albania<br />
Bank of Albania<br />
Ministry of Finance, Bulgaria<br />
Ministry of Finance, North Macedonia<br />
National Bank of the Republic of North Macedonia<br />
Ministry of Finance, Moldova<br />
National Bank of Moldova<br />
Ministry of Finance, Montenegro<br />
Central Bank of Montenegro<br />
Ministry of Finance, Romania<br />
National Bank of Romania<br />
Ministry of Finance, Slovenia<br />
Banka Slovenije<br />
Ministry of Foreign and European Affairs, Slovenia<br />
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)<br />
Ministry of Finance, Slovakia
42 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
GOVERNANCE AND CULTURE 43<br />
ADVISORY<br />
BOARD<br />
Three representatives from the Advisory Board also participate in the<br />
<strong>CEF</strong> Governing Board. Members convene on an annual basis and cooperate<br />
with staff members throughout the year when needed. Mateja<br />
Vraničar Erman from the Ministry of Foreign and European Affairs of<br />
Slovenia currently serves as its chair.<br />
At their <strong>2022</strong> annual meeting, members of the Advisory Board provided<br />
their expertise to fine-tune the 2023 program. They confirmed that it is in<br />
line with the <strong>CEF</strong>’s strategic orientation and global trends, supports EU<br />
integration processes, and is responsive to the region’s needs. They also<br />
gave advice on talent management and shared experience in engaging<br />
experts in the <strong>CEF</strong> program.<br />
The <strong>CEF</strong> Advisory<br />
Board consists of<br />
experts from donors<br />
and partners.<br />
They provide<br />
valuable support<br />
to the institution<br />
by offering diverse<br />
perspectives on<br />
designing and<br />
coordinating the<br />
activities of the <strong>CEF</strong>.<br />
<strong>CEF</strong> ADVISORY BOARD MEMBERS (AS AT APRIL 30, 2023)<br />
Mateja Vraničar Erman, Chair<br />
Angelique van Haasteren<br />
Sierd Hadley<br />
Xavier Hawia<br />
Marianna Macaškova<br />
Birger Nerré<br />
Ministry of Foreign and European Affairs, Slovenia<br />
Ministry of Finance, the Netherlands<br />
ODI, United Kingdom<br />
National Bank of Belgium<br />
Ministry of Finance, Slovakia<br />
GIZ
44 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
GOVERNANCE AND CULTURE 45<br />
<strong>CEF</strong> Coordinators<br />
are the appointed<br />
representatives<br />
of the ministries<br />
of finance, central<br />
banks and tax<br />
administrations,<br />
responsible<br />
for capacity<br />
development<br />
and strategic<br />
human resources<br />
management.<br />
<strong>CEF</strong><br />
COORDINATORS<br />
<strong>CEF</strong> Coordinators are instrumental in identifying the<br />
learning needs of individuals and institutions in their<br />
region, and assist the Governing Board in setting<br />
capacity development priorities.<br />
<strong>CEF</strong> Coordinators meet regularly to discuss the latest<br />
trends and pressing issues affecting their institutions,<br />
such as the recent shift towards learning organizations<br />
and the required human resource strategies.<br />
They are essential for the <strong>CEF</strong>’s deeper understanding<br />
of the learning needs of their constituency and for<br />
developing relevant learning programs.<br />
In June <strong>2022</strong>, we organized a workshop for <strong>CEF</strong> Coordinators,<br />
focused on knowledge management in<br />
public institutions. This was part of the <strong>CEF</strong> Forum<br />
<strong>2022</strong> events. We also fostered a thriving community<br />
of <strong>CEF</strong> Coordinators in tax administrations and<br />
central banks. They met regularly and their active<br />
participation in the events proves the need for such<br />
engagement and wider regional cooperation.<br />
<strong>CEF</strong> COORDINATORS (AS AT APRIL 30, 2023)<br />
Vasilika Vjero<br />
Ministry of Finance and Economy, Albania<br />
Eralda Bici<br />
Bank of Albania<br />
Olisa Osmani<br />
General Taxation Directorate, Albania<br />
Sehija Mujkanović<br />
Ministry of Finance and Treasury, Bosnia and Herzegovina<br />
Almir Salihović<br />
Central Bank of Bosnia and Herzegovina<br />
Denisa Seho<br />
Indirect Taxation Authority of Bosnia and Herzegovina<br />
Amela Kazazić<br />
Tax Administration of the Federation of Bosnia and Herzegovina<br />
Sandra Kovačević<br />
Tax Administration of Republic of Srpska, Bosnia and Herzegovina<br />
Galina Tzekova<br />
Ministry of Finance, Bulgaria<br />
Stoyan Bozhkov<br />
Bulgarian National Bank<br />
Boryana Yankova-Sharkova National Revenue Agency, Bulgaria<br />
Andrea Kocelj<br />
Ministry of Finance, Croatia<br />
Marija Lončar<br />
Ministry of Finance, Tax Administration, Croatia<br />
Kaltrina Dauti Bytyci Ministry of Finance, Labor and Transfers, Kosovo<br />
Syzana Mahmutaj<br />
Central Bank of the Republic of Kosovo<br />
Floransa Sahiti<br />
Tax Administration of Kosovo<br />
Tatiana Onici<br />
Ministry of Finance, Moldova<br />
Natalia Zabolotnii<br />
National Bank of Moldova<br />
Iulia Nazarco<br />
State Tax Service, Moldova<br />
Lidija Šećković<br />
Revenue Administration, Montenegro<br />
Marija Radenović<br />
Central Bank of Montenegro<br />
Magdalena Simonovska Ministry of Finance, North Macedonia<br />
Aleksandra Kacarski National Bank of the Republic of North Macedonia<br />
Marjan Mihajlovski<br />
Public Revenue Office, North Macedonia<br />
Emanuel-Alex Constantin Ministry of Finance, Romania<br />
Mugur Tolici<br />
National Bank of Romania<br />
Costin Naghi<br />
National Agency for Fiscal Administration, Romania<br />
Bojana Drobnjak<br />
National Bank of Serbia<br />
Snezana Ilić<br />
Tax Administration, Serbia<br />
Sanja Pregl<br />
Banka Slovenije<br />
Klemen Babnik<br />
Ministry of Finance, Slovenia<br />
Nataša Marušič Kuhar Financial Administration of the Republic of Slovenia<br />
Taşkın Babaoğlan<br />
Presidency of the Republic of Türkiye, Presidency of Strategy and Budget<br />
Arzu Hancı Karademirci Central Bank of the Republic of Türkiye<br />
Sabire Firdes Terzi<br />
Ministry of Treasury and Finance, Türkiye
46 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
GOVERNANCE AND CULTURE 47<br />
The 34-member<br />
<strong>CEF</strong> Secretariat<br />
that carries<br />
out day-to-day<br />
activities is led by<br />
the director and<br />
supported by staff<br />
members and<br />
one expert. They<br />
came from diverse<br />
backgrounds –<br />
Albania, Georgia,<br />
Germany, North<br />
Macedonia,<br />
Serbia, Slovenia,<br />
and Türkiye – and<br />
thus offer valuable<br />
international<br />
experiences and<br />
language skills.<br />
SECRETARIAT<br />
The Secretariat collaborated with 11 affiliated experts and two IMF regional technical<br />
assistance advisors and their interpreter, as well as our growing expert community.<br />
We prioritize people-centered approach not only through the learning experience we<br />
offer but also demonstrate it internally through our organizational culture. These are<br />
examples of how we did it in <strong>2022</strong>:<br />
We nurtured our internal communication through<br />
• a three-member Staff Council that met on a monthly with staff members and<br />
the lead team to address organizational matters that arise through daily work<br />
• coaching and mentoring training for half of staff members<br />
We prioritized out team’s well-being by providing:<br />
• Hybrid and agile workplace to support flexibility and work-life balance<br />
• Office gym to support our physical and mental health<br />
• Regular monitoring of our well-being through internal and external surveys<br />
We invested in our upskilling through internal and external trainings, conferences,<br />
and other learning events:<br />
• 23 internally designed learning opportunities: 17 short internal and external<br />
knowledge-sharing sessions, 4 internal trainings and 2 retreats<br />
• 36 external trainings, coaching, conferences, and other learning events<br />
UNLOCKING POTENTIAL<br />
THROUGH <strong>CEF</strong>’S COACHING AND<br />
MENTORING APPROACH<br />
We have integrated coaching and mentoring into our organizational<br />
culture and learning, which helps us inspire<br />
public officials to shape their institutional governance. In<br />
<strong>2022</strong>, half of the staff members attended coaching and<br />
mentoring skills training. Thus, we have started to implement<br />
the principles of a coaching and mentoring culture<br />
that emphasizes the application of skills during conversations.<br />
We use those skills to improve our engagement<br />
and commitment, and contribute to individual, team and<br />
organizational performance.<br />
As a learning organization, we also integrate coaching<br />
and mentoring into our learning and knowledge sharing<br />
program. In <strong>2022</strong>, we started to provide coaching sessions<br />
to ERP Coordinators and their team members to<br />
enhance their coordination and management skills.<br />
Building positive relationships based on trust and mutual<br />
support facilitates transfer of knowledge. It helps us<br />
adapt to changing circumstances, understand diverse<br />
cultures and target audiences, and accept changes in<br />
the internal and external environment. By adopting a<br />
coaching and mentoring culture, we better equip ourselves<br />
to support our participants and enable them to<br />
achieve their goals.<br />
Coaching sessions helped me to<br />
improve my communication skills. I got much<br />
useful information about areas in which I<br />
should improve myself in order to achieve<br />
better results. Getting to know me better and<br />
realizing things that I am not doing at on optimal<br />
level will help me in my career.<br />
JOVAN BORIŠIĆ<br />
Public Policy Secretariat of the Government<br />
of Serbia, Coachee<br />
The International Coaching Federation defines<br />
coaching as a creative partnership that unlocks<br />
untapped sources of imagination, productivity<br />
and leadership, inspiring people to reach their<br />
full potential. A coach is a non-judgmental,<br />
ethical partner who demonstrates knowledge<br />
through past experiences.<br />
Coaching is a powerful tool for<br />
people’s development in business but also<br />
as a person. It supports people to grow as a<br />
whole, fulfill their potential and regain sense<br />
of purpose and meaning. It gives space to<br />
connect with their core and with others, to<br />
learn and act accordingly for the benefit of all.<br />
And that is what <strong>CEF</strong> stands for – CONNECT,<br />
LEARN, ACT!<br />
ELENA ANTONOVSKA<br />
ICF PCC, Coach
48 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
GOVERNANCE AND CULTURE 49<br />
PARTNERSHIPS<br />
Through three types of partnerships – governance, donors and<br />
knowledge sharing – we achieve our interconnected goals: good governance,<br />
sustainable financing, and promotion of regional and global<br />
expertise. <strong>CEF</strong> partners include governments, international financial<br />
institutions, academia, independent experts and NGOs, as well as<br />
<strong>CEF</strong> constituency institutions that co-fund our program, share their<br />
expertise, and are members of our institutional governance.<br />
We also facilitate communities of practice and networks, such as<br />
Network of Regional Experts for Structural Reforms to foster collaboration<br />
and inclusivity. By cooperating with a wide range of organizations<br />
and experts, we can deliver our learning and knowledge sharing<br />
program and implement international development cooperation, ultimately<br />
achieving our mandate and generating value for all involved.<br />
In particular, we collaborated closely with the IMF who uses the <strong>CEF</strong><br />
as a hub for their technical assistance in SEE. Our collaboration involves<br />
sharing knowledge and expertise to address regional capacity<br />
development needs through various learning and technical assistance<br />
activities. In <strong>2022</strong>, we hosted two FAD advisors for public financial<br />
management and revenue administration and their interpreter.<br />
The details of their work are provided in the IMF FAD Advisors’ <strong>Report</strong><br />
for <strong>2022</strong> (see appendix).<br />
Our partner<br />
relations support<br />
delivering<br />
our value<br />
added to the<br />
professionals,<br />
their teams and<br />
institutions in the<br />
<strong>CEF</strong> constituency.
50 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
GOVERNANCE AND CULTURE 51<br />
PARTNERS’ IN-KIND<br />
CONTRIBUTIONS<br />
TO OUR PROGRAM<br />
Partners’ contributions in cash are recorded and<br />
reported in the <strong>CEF</strong>’s financial statements. The<br />
in-kind contributions that are not recorded and<br />
reported in the financial statements are shown<br />
here. Several partner institutions and donors<br />
sponsor lecturers (travel expenses and lecturing<br />
fees) for their engagement in <strong>CEF</strong> learning activities.<br />
Following the Governing Board’s proposal<br />
to gradually increase the number of<br />
lecturing contributions, particularly from<br />
our own constituency, there has been a<br />
significant increase starting from 2018.<br />
Similarly, the number of in-kind engagements<br />
within our constituency surpassed<br />
the number of paid ones in 2018.<br />
A lecturing day is<br />
estimated at EUR<br />
1,000 (including the<br />
preparation time).<br />
Travel expenses<br />
are estimated to be<br />
EUR 1,500 based<br />
on historical data,<br />
whereby sending<br />
institutions cover<br />
travel expenses in<br />
50% of cases. A<br />
weighted travel lump<br />
sum of EUR 750 is<br />
hence applied to<br />
all individual expert<br />
engagements<br />
EUR<br />
Affiliated and external experts 6,500<br />
<strong>CEF</strong> constituency institutions 44,250<br />
Bank of Albania 2,750<br />
Banka Slovenije 3,000<br />
Central Bank of Bosnia and Herzegovina 1,000<br />
Directorate for Economic Planning, Bosnia and Herzegovina 1,000<br />
Financial Administration of the Republic of Slovenia, Slovenia 3,500<br />
Ministry of Finance and Economy, Albania 9,250<br />
Ministry of Finance, Montenegro 1,000<br />
Ministry of Finance, North Macedonia 3,250<br />
Ministry of Finance, Serbia 1,000<br />
Ministry of Finance (and IMAD), Slovenia 6,000<br />
Ministry of Labour, Family, Social Affairs and Equal Opportunities, Slovenia 2,500<br />
National Bank of Moldova 1,000<br />
National Bank of the Republic of North Macedonia 1,250<br />
Presidential Strategy and Budget Office, Türkiye 1,000<br />
Tax Administration of Kosovo 2,500<br />
Other* 4,250<br />
Other countries’ institutions 67,250<br />
Banque de France 12,500<br />
Chartered Institute of Public Finance and Accountancy (CIPFA), United Kingdom 6,250<br />
GIZ, GmbH 2,000<br />
Ministry of Finance, Georgia 1,000<br />
Ministry of Finance, the Netherlands 27,750<br />
National Bank of Belgium 7,750<br />
National Bank of Slovakia 2,250<br />
ODI, United Kingdom 2,000<br />
Zurich University of Applied Sciences (ZHAW), Switzerland 2,500<br />
Other* 3,250<br />
EU institutions and international organizations 79,000<br />
European Central Bank (ECB) 4,500<br />
European Union 14,250<br />
International Monetary Fund (IMF) 32,500<br />
Organisation for Economic Co-operation and Development (OECD) 14,500<br />
Regional Anti-Corruption Initiative (RAI) 2,000<br />
Other* 11,250<br />
Total 197,000<br />
* Institutions with an estimated contribution of less than EUR 1,000.
52 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
COMMUNICATION 53<br />
COMMUNICATION<br />
We strive to curate and communicate information that is relevant to<br />
our internal and external audiences. We focus on showing the benefits<br />
of the information we share, and we use various communication<br />
channels to illustrate the impact and results of our work.<br />
We are continuously developing our skills to tell stories – value creation<br />
stories – about learning and changes in the region that lead to<br />
reforms. We are successfully leveraging both social and digital media<br />
to tell our shared stories and integrate them into future learning<br />
initiatives. Our web page, social media channels, digital newsletter,<br />
learning blog, digital stories, and videos are great examples of that.<br />
Communication<br />
is an integral<br />
part of our<br />
learning and<br />
knowledge<br />
sharing.<br />
We made a new visual summary of the <strong>CEF</strong> thematic areas and updated<br />
our web page for a better user experience when navigating<br />
through our learning opportunities.<br />
We also captured and packaged knowledge and experience in knowledge<br />
products, printed and digital products – publications, reports,<br />
good practices, recommendations, infographics, posters and videos.<br />
16,000+ 4,000+ 18 12<br />
SOCIAL MEDIA<br />
CHANNELS AND<br />
WEBSITE FOLLOWERS<br />
NEWSLETTER<br />
SUBSCRIBERS<br />
(double the number from 2020)<br />
LEARNING<br />
BLOGS<br />
DIGITAL<br />
STORIES<br />
11 10 7 4<br />
KNOWLEDGE<br />
PRODUCTS<br />
VALUE CREATION<br />
STORIES<br />
PUBLICATIONS<br />
VIDEOS<br />
KNOWLEDGE PRODUCTS PUBLISHED IN <strong>2022</strong><br />
• Facilitation Poster<br />
• Feedback Poster<br />
• Economic Reform Programme (ERP) at a Glance<br />
• Everything You Always Wanted to Know About<br />
Structural Reforms<br />
• Fiscal Implications of Structural Reforms Project<br />
in a Nutshell<br />
• Integration of Structural Reforms and Fiscal<br />
Frameworks in Economic Reform Programmes<br />
• Monitoring the Implementation of Structural Reforms<br />
- Theory and Practice<br />
• Advancing the Digitalisation of the ERP Preparation<br />
Process<br />
• Tips and Tricks on Doing Risk Management<br />
• How Public Institutions Can Become Learning<br />
Organizations<br />
• How Online Learning and Knowledge Sharing Work<br />
at <strong>CEF</strong>
54 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
MONITORING AND EVALUATION 55<br />
MONITORING<br />
AND EVALUATION<br />
We collect value creation stories and integrate results from various<br />
levels to better understand how change happens and how we<br />
can contribute to it. To ensure that we are constantly improving<br />
and adapting, we seek regular feedback during the implementation<br />
of our activities and hold progress reporting and after-action<br />
review meetings with external stakeholders.<br />
At the end of each year, we evaluate our efforts and capture the<br />
lessons learned to improve our results framework and make<br />
even more progress in the year ahead. We reflect on how we can<br />
strengthen our project-specific result frameworks to better connect<br />
them with the higher-level outcomes that we wish to achieve.<br />
In <strong>2022</strong>, we established six strategic objectives to be achieved<br />
by 2026 that coincide with the six building blocks of a learning<br />
organization, and mapped out strategic targets for <strong>2022</strong>. We<br />
linked them to operational objectives and targets and our<br />
individual performance plans. At the end of the year, we reviewed<br />
the targets, which were predominantly achieved.<br />
We established two new positions – data and monitoring and<br />
evaluation manager and chief strategy officer – and adjusted the<br />
organizational structure accordingly.<br />
Monitoring<br />
and evaluation<br />
are vital to our<br />
organization’s<br />
work, as it helps<br />
us understand<br />
our impact and<br />
make necessary<br />
improvements.<br />
SIX STRATEGIC OBJECTIVES OF THE <strong>CEF</strong><br />
aligned with six building blocks of a learning organization<br />
GOVERNANCE AND CULTURE<br />
We adjust our internal and external<br />
governance and culture to the<br />
needs of the institution collaboratively,<br />
pro-actively and effectively.<br />
RESOURCES<br />
We ensure sufficient, stable and<br />
efficiently managed resources<br />
to promote staff development,<br />
institutional innovation and program<br />
delivery.<br />
KNOWLEDGE CAPTURING,<br />
PACKAGING AND SHARING<br />
<strong>CEF</strong> staff, experts and partners<br />
develop the capacities needed to<br />
serve the focus areas of our impact<br />
through our activities.<br />
PARTNERSHIPS<br />
We develop our capacity to nurture<br />
partnerships that bring out<br />
our value-added.<br />
COMMUNICATION<br />
Through our communication<br />
channels, we make our value<br />
added, impact and stakeholders<br />
globally visible.<br />
MONITORING AND EVALUATION<br />
We regularly and effectively monitor<br />
and evaluate our work, results and<br />
risks, feed-forwarding the lessons<br />
learned into future actions.
56 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
MONITORING AND EVALUATION 57<br />
RISK MANAGEMENT<br />
We have a structured and systemic risk management process<br />
integrated into other management systems to support<br />
decision making. All staff members participate in risk identification,<br />
monitoring and mitigation through regular meetings<br />
and the development of the risk register. Risks are informally<br />
reviewed as part of our daily work and formally addressed on<br />
institutional and project levels.<br />
MAJOR STRATEGIC AND OPERATIONAL RISKS<br />
1. Financial risks: risks associated with ensuring long-term<br />
financial sustainability, managing rising inflation, financial<br />
planning, and executing financial plans<br />
2. Political risks: risks stemming from political instability,<br />
changes in governments and reform agendas in constituency<br />
countries.<br />
3. Cybersecurity: vulnerability to cyber-attacks, use and safety<br />
of data<br />
4. Reputation risks: risks associated with not meeting the<br />
needs and expectations of the beneficiaries and donors,<br />
as well as ethical culture<br />
5. Human resources: risks related to attracting and mobilizing<br />
the right talents and skills, developing an organizational<br />
culture, safety and well-being<br />
We also monitor risks associated with projects as an integral<br />
part of our project management system that is conducted<br />
quarterly.<br />
FISR 2 PROJECT RISKS<br />
1. Human resources: risks related to changes in ERP coordination<br />
teams; ensuring a sufficient number of applications;<br />
identifying appropriate candidates for learning activities;<br />
high turnover of public officials at line ministries<br />
working on the ERP process<br />
2. EU accession process: risks related to interest of beneficiaries<br />
to implement further changes to the ERP process<br />
and its quality<br />
3. Learning: risks related to similar projects and activities in<br />
the ERP area; promoting retention and knowledge sharing<br />
in institutions<br />
4. Logistics: risks related to inability to effectively reach out<br />
to the beneficiaries due to cyber-attacks as well as worsened<br />
travel connections
58 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
GOVERNANCE AND CULTURE 59<br />
KEY ESG ASPECTS AND SDGs OF THE <strong>CEF</strong> IN <strong>2022</strong><br />
SUSTAINABILITY<br />
OVERVIEW<br />
ENVIRONMENTAL ASPECTS<br />
• Energy consumption and carbon<br />
footprint<br />
• Waste<br />
• Paperless operations<br />
SOCIAL ASPECTS<br />
• Health, safety and satisfaction of<br />
the staff<br />
• Diversity and equal opportunity<br />
• Investing in the local community<br />
and supporting sports, culture,<br />
education and health<br />
GOVERNANCE ASPECTS<br />
• Stable operations<br />
• High standards of governance<br />
• High stakeholder engagement<br />
• Effective risk management<br />
• Effective processes<br />
Reduced average daily paper<br />
consumption per employee from<br />
45 in 2021 to 14 paper sheets<br />
per day in <strong>2022</strong><br />
<strong>2022</strong> Learning and Networking<br />
Program (capacity development<br />
for SEE public institutions):<br />
105 activities<br />
Start of implementation of the<br />
<strong>2022</strong>–2026 Strategic Direction of<br />
the <strong>CEF</strong>, co-created and endorsed<br />
by key stakeholders<br />
Sustainability<br />
reporting is not<br />
yet a regulatory<br />
requirement for our<br />
organization but we<br />
believe this overview<br />
is an important step<br />
towards greater<br />
transparency and<br />
accountability.<br />
This sustainability overview represents our initial efforts to map out the environmental,<br />
social and governance (ESG) impact to demonstrate our commitment to<br />
sustainability and transparency for individuals, organizations, and societies we<br />
serve.<br />
In achieving the SDGs, we brought our most significant contribution to the realization<br />
of the Goal 16: Peace, Justice and Strong Institutions and Goal 17: Partnerships for<br />
the Goals through our learning and knowledge sharing activities.<br />
We will in the future closely involve our stakeholders – staff members, governance<br />
bodies, constituency and other beneficiary institutions, participants, experts, and<br />
other relevant partners – in determining and achieving our ambitions in sustainable<br />
development.<br />
Providing kitchen for employees’<br />
meals, sharing food leftovers for<br />
consumption<br />
Saving 4170 disposable coffee<br />
cups and 1612 plastic water<br />
bottles<br />
Paperless (digital) operations<br />
Reduced number of printed<br />
publications<br />
Hybrid work, reduced daily<br />
commuting<br />
Diverse staff members from eight<br />
countries<br />
Coaching and mentoring culture –<br />
more than 50 % of staff members<br />
participated in coaching trainings<br />
Personal development plans for all<br />
Short, regular internal knowledge<br />
sharing sessions (23) to promote<br />
personal and professional growth<br />
Staff Council activities and dialogue<br />
Monitoring surveys (2) on employee<br />
well-being and satisfaction<br />
Visiting the residents of a<br />
retirement home<br />
Supporting Pink October movement<br />
Blood donations by staff members<br />
Strategic institutional objectives<br />
and targets paired with operational<br />
for <strong>2022</strong><br />
Implementation regularly<br />
monitored and evaluated at the<br />
end of the year – the majority of set<br />
targets were fully achieved.<br />
More multiannual project funding<br />
acquired in <strong>2022</strong> that in addition to<br />
the core budget represent a stable<br />
medium-term outlook to funding<br />
Organizational structure of the<br />
<strong>CEF</strong> was adjusted in <strong>2022</strong> to serve<br />
the implementation of the new<br />
strategic direction<br />
<strong>CEF</strong> governance remained lean and<br />
efficient
60 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
FINANCIAL STATEMENTS 61<br />
FINANCIAL<br />
REPORT
62 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
FINANCIAL STATEMENTS 63<br />
FINANCIAL STATEMENTS<br />
RESPONSIBILITY<br />
FOR THE FINANCIAL<br />
STATEMENTS<br />
The Management is responsible for ensuring that the financial statements<br />
are prepared for each financial period in accordance with the<br />
International Financial <strong>Report</strong>ing Standards (IFRS), which give a true<br />
and fair view of the state of affairs and results of the <strong>CEF</strong>.<br />
After making enquiries, the Management has a reasonable expectation<br />
that the <strong>CEF</strong> has adequate resources to continue in operational<br />
existence for the foreseeable future. For this reason, the Management<br />
continues to adopt the going concern basis in preparing the<br />
consolidated financial statements.<br />
In preparing those financial statements, the responsibilities of<br />
Management include ensuring that:<br />
• suitable accounting policies are selected and then applied<br />
consistently;<br />
• judgments and estimates are reasonable and prudent;<br />
• applicable accounting standards are followed, subject to any<br />
material departures disclosed and explained in the consolidated<br />
financial statements; and<br />
• the financial statements are prepared on the going concern basis.<br />
Management is responsible for keeping proper accounting records,<br />
which disclose with reasonable accuracy at any time, the financial<br />
position of the <strong>CEF</strong> and its financial performance. The Management<br />
is also responsible for safeguarding the assets of the <strong>CEF</strong>, and<br />
hence, for taking reasonable steps for the prevention and detection<br />
of fraud and other irregularities.<br />
Note: Due to rounding, numbers presented throughout this Financial<br />
<strong>Report</strong> may not add up precisely to the totals provided.
64 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
FINANCIAL STATEMENTS 65<br />
1. FINANCIAL STATEMENTS<br />
1.1. STATEMENT OF FINANCIAL POSITION 1.2. STATEMENT OF PROFIT OR LOSS<br />
Items<br />
Note<br />
December<br />
31, <strong>2022</strong><br />
EUR<br />
December<br />
31, 2021<br />
Non-current assets 599,201 659,011<br />
Intangible assets 1 15,525 24,839<br />
Property, plant and equipment 2 583,676 634,171<br />
Current assets 3,520,985 2,308,449<br />
Trade receivables 3 208,345 65,744<br />
Cash and cash equivalents 4 3,312,640 2,242,706<br />
Prepayments and other assets 5 497,248 655,436<br />
TOTAL ASSETS 4,617,434 3,622,896<br />
Equity (Founder’s funds) 1,328,648 1,401,802<br />
Share capital (Founder's funds) 6 4,173 4,173<br />
Capital surplus 6 225 225<br />
Fair value reserve 6 -10,990 -80,332<br />
General reserves 6 1,335,240 1,477,736<br />
EUR<br />
Items Note <strong>2022</strong> 2021<br />
Revenue from program 11 2,672,760 2,446,709<br />
Other revenue 78,241 42,044<br />
Total revenue 2,751,001 2,488,753<br />
Cost of materials 13 69,839 77,473<br />
Cost of services 14 1,027,575 704,344<br />
Labor costs 15 1,682,867 1,580,384<br />
Depreciation and amortization costs 16 89,684 78,664<br />
Other operating expenses 17 17,871 10,142<br />
Other expenses 19 2,312 2,695<br />
Total expenses 2,890,148 2,453,701<br />
Financial income 12 89 143<br />
Financial costs 18 3,439 1,501<br />
<strong>Annual</strong> result -142,497 33,694<br />
Provisions and long-term accrued costs and deferred revenue 812,597 952,676<br />
Provisions 7 213,396 293,574<br />
Long-term accrued costs and deferred revenue 8 599,201 659,102<br />
Operating liabilities 225,327 305,359<br />
Trade payables 9 67,418 145,403<br />
Liabilities to employees 9 152,904 138,673<br />
Other short-term payables 9 5,004 21,284<br />
Advances payable and other current liabilities 10 2,250,862 963,058<br />
TOTAL EQUITY AND LIABILITIES 4,617,434 3,622,896<br />
Accounting policies and notes are an integral part of these financial statements<br />
and should be read in conjunction with them.<br />
1.3. STATEMENT OF OTHER COMPREHENSIVE INCOME<br />
Comprehensive income<br />
Generated in<br />
<strong>2022</strong><br />
EUR<br />
Generated in<br />
2021<br />
Excess of revenues over expenses -142,497 33,694<br />
Other comprehensive income<br />
Actuarial gains (losses) 69,343 41,842<br />
Other comprehensive income for the period 69,343 -41,842<br />
Total comprehensive income (loss) for the period -73,154 -8,147<br />
Accounting policies and notes are an integral part of these financial statements<br />
and should be read in conjunction with them.
66 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
FINANCIAL STATEMENTS 67<br />
1.4. CASH FLOW STATEMENT<br />
1.5. STATEMENT OF CHANGES IN EQUITY<br />
EUR<br />
Items <strong>2022</strong> 2021<br />
Cash flows from operating activities<br />
<strong>Annual</strong> result 2,751,001 2,488,753<br />
Total expenses -2,890,148 -2,453,701<br />
Adjustments for<br />
Amortization and depreciation 89,684 78,664<br />
Actuarial gains (losses) 69,343 -41,842<br />
Write-downs of property, plant and equipment 676 2,524<br />
Financial income -54 0<br />
Financial costs -3,439 -1,501<br />
Operating profit before changes in net current assets and taxes 17,063 72,898<br />
YEAR <strong>2022</strong><br />
Items<br />
Share capital<br />
(Founder's<br />
funds)<br />
Capital<br />
surplus<br />
Fair Value<br />
reserves<br />
General<br />
reserves<br />
EUR<br />
Total<br />
Equity<br />
Opening balance as of January 1, <strong>2022</strong> 4,173 225 -80,332 1,477,736 1,401,802<br />
Entry of additional capital payments 0 0 0 0 0<br />
Total comprehensive income (loss) for the<br />
period<br />
Other components of the comprehensive<br />
income for the reporting period<br />
0 0 69,342 -142,496 -73,154<br />
0 0 69,342 0 69,343<br />
<strong>Annual</strong> result 0 0 0 -142,496 -142,497<br />
Closing balance as of December 31, <strong>2022</strong> 4,173 225 -10,990 1,335,240 1,328,648<br />
Changes in net current assets and provisions<br />
Change in receivables -142,602 9,764<br />
Change in prepayments and other assets 158,188 -607,893<br />
Change in operating liabilities -80,032 158,628<br />
Change in provisions -140,080 26,504<br />
Change in advances payable and other current liabilities 1,287,804 343,907<br />
Net cash flow from operating activities 1,100,341 3,809<br />
Cash flow from investing activities<br />
Interest received 143 143<br />
Acquisitions of property plant and equipment -30,551 -43,395<br />
Net cash flow from investing activities -30,408 -43,252<br />
Cash flow from financing activities<br />
Interest paid 0 0<br />
Net cash flow from financing activities 0 0<br />
Cash and cash equivalents at the beginning of period 2,242,706 2,282,149<br />
YEAR 2021<br />
Items<br />
Share capital<br />
(Founder’s<br />
funds)<br />
Capital<br />
surplus<br />
Fair<br />
value<br />
reserves<br />
General<br />
reserves<br />
EUR<br />
Total<br />
Equity<br />
Opening balance as of January 1, 2021 4,173 225 -38,491 1,444,042 1,409,949<br />
Entry of additional capital payments 0 0 0 0 0<br />
Total comprehensive income (loss) for the<br />
period 0 0 -41,842 33,694 -8,147<br />
Other components of the comprehensive<br />
income for the reporting period 0 0 -41,842 0 -41,842<br />
<strong>Annual</strong> result 0 0 0 33,694 33,694<br />
Closing balance as of December 31, 2021 4,173 225 -80,332 1,477,736 1,401,802<br />
Accounting policies and notes are an integral part of these financial statements<br />
and should be read in conjunction with them.<br />
Net increase in cash and cash equivalents 1,069,933 -39,444<br />
Cash and cash equivalents at the end of period 3,312,639 2,242,706<br />
Accounting policies and notes are an integral part of these financial statements<br />
and should be read in conjunction with them.
68<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 69<br />
2. INTRODUCTORY NOTES<br />
AND ACCOUNTING POLICIES<br />
2.1. REPORTING ENTITY<br />
The reporting organization Center of Excellence in Finance (<strong>CEF</strong>) is based in Slovenia. Its registered<br />
office is at Cankarjeva 18, SI-1000 Ljubljana, Slovenia.<br />
The <strong>CEF</strong> supports capacity development of public officials and their institutions in South East Europe<br />
through learning and knowledge sharing. It primarily works with ministries of finance, central banks,<br />
tax administrations, and budget intensive line ministries. Thematically it focuses on the technical<br />
expertise of public financial management and central banking and combines it with non-technical<br />
areas of leadership for managing reforms and learning and knowledge ecosystems. The results on the<br />
ground show that combining technical with non-technical areas is <strong>CEF</strong>’s major value added. The <strong>CEF</strong><br />
is a leader in applying people-centered learning approaches and holding the know-how of becoming<br />
and being a learning organization.<br />
The financial statements of the <strong>CEF</strong> were prepared for the business year that ended on December<br />
31, <strong>2022</strong>.<br />
2.2. BASIS FOR PREPARATION<br />
(A) STATEMENT OF COMPLIANCE. The financial statements were prepared in accordance with the<br />
International Financial <strong>Report</strong>ing Standards (IFRS) as adopted by the EU and the provisions of the<br />
<strong>CEF</strong> Internal Rules.<br />
The financial statements were approved by the <strong>CEF</strong> Director on May 25, 2023.<br />
The financial statements were compiled in accordance with the assumption of ongoing concern. The<br />
<strong>CEF</strong>’s work is not influenced by seasons; however, the financial result depends on the number and<br />
duration of approved projects.<br />
(B) MEASUREMENT BASIS. The financial statements were compiled on a historical cost basis.<br />
(C) FUNCTIONAL AND PRESENTATION CURRENCY. The financial statements are expressed in euros,<br />
the <strong>CEF</strong>’s functional currency. All accounting data presented in euros are rounded to the nearest<br />
integer.<br />
(D) REPORTING PERIOD. The <strong>CEF</strong>’s financial year equals the calendar year.<br />
(E) USE OF ESTIMATES AND JUDGMENTS. When preparing the financial statements, the <strong>CEF</strong>’s management<br />
is required to make judgments, estimates and assumptions that affect the application of accounting<br />
policies and the reported values of assets, liabilities, revenues and expenses in accordance<br />
with the IFRS. Actual results may vary from these estimates.<br />
The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting<br />
estimates are recognized in the period in which the estimate is revised and in any future periods<br />
affected. Estimates and assumptions are mainly associated with: estimated useful lives of<br />
amortizable assets, asset impairment, employee earnings, provisions, and contingent liabilities.<br />
2.3. SIGNIFICANT ACCOUNTING POLICIES<br />
The <strong>CEF</strong> has consistently applied the accounting policies to all periods presented in its financial<br />
statements.<br />
(A) FOREIGN CURRENCY<br />
Foreign currency transactions<br />
Foreign currency transactions are converted into the functional currency of the <strong>CEF</strong> using the<br />
exchange rate applied on the day they arise. Cash, cash equivalents and liabilities denominated<br />
in foreign currencies are converted into the functional currency using the exchange rate applicable<br />
at the end of the reporting period. Positive or negative exchange differences are differences<br />
between the amortized cost in the functional currency at the beginning of the period, increased<br />
or decreased by the amount of applicable interest and payments in the period, and the amortized<br />
cost expressed in foreign currency, converted using the exchange rate at the end of the period.<br />
Exchange rate differences are recognized in the income statement.<br />
The ECB’s reference exchange rates and the Bank of Slovenia’s monthly exchange rates for currencies<br />
for which the ECB does not publish reference exchange rates are used to convert receivables<br />
denominated in foreign currencies.<br />
(B) FINANCIAL INSTRUMENTS<br />
Non-derivative financial assets<br />
Receivables and deposits are initially recognized on the day they arise. Financial assets are<br />
derecognized when the contractual rights to cash flows from these assets expire, or when the<br />
<strong>CEF</strong> transfers the rights to cash flows from financial assets based on a transaction that involves<br />
the transfer of all risks and benefits associated with the ownership of the financial asset.<br />
Depending on their maturity, they are classified as current financial assets (maturity of up to 12<br />
months from the date of the statement of financial position) or non-current financial assets (maturity<br />
of more than 12 months from the date of the statement of financial position). Deposits and<br />
receivables are recognized initially at fair value plus any directly attributable transaction costs.<br />
Subsequent to initial recognition, they are measured at amortized cost using the effective interest<br />
method, less any impairment losses.<br />
Receivables<br />
Loans and receivables are non-derivative financial assets with fixed or determinable payments<br />
not quoted on an active market. They are initially recognized at fair value and increased by any direct<br />
transaction costs. After initial recognition, loans and receivables are measured at amortized<br />
cost using the effective interest rate method, less any impairment losses. Loans and receivables<br />
include operating and other receivables.
70<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 71<br />
The <strong>CEF</strong> does not invest in non-derivative financial assets with fixed or determinable payments.<br />
The <strong>CEF</strong> checks the materiality of disclosed receivables at least once a year. Receivables, for<br />
which there exists the possibility that they will not be settled in part (or not at all) within 180 days<br />
of maturity, are generally deemed as doubtful. The <strong>CEF</strong> creates an allowance for doubtful and<br />
disputed receivables in an amount equal to 100%, which is charged to revaluation expenses. <strong>CEF</strong><br />
did not make material changes to impairment policy for undue receivables as IFRS 9 requires, as<br />
the effects are immaterial.<br />
Cash and cash equivalents<br />
Cash and cash equivalents include cash in hand and sight deposits.<br />
Financial and operating liabilities<br />
Other financial and operating liabilities are initially recognized at fair value on the day they arise,<br />
and afterwards at amortized cost, using the effective interest rate method.<br />
Liabilities are only derecognized if they have been extinguished, meaning that they have been<br />
fulfilled. The difference between the carrying amount of liabilities that have been extinguished<br />
and the consideration paid (including non-monetary assets or assumed liabilities) is recognized<br />
immediately in the profit or loss account.<br />
Share capital<br />
Share capital is the capital contributed by the founder. The <strong>CEF</strong>’s total equity comprises capital<br />
and capital surplus.<br />
General reserves<br />
As envisaged in Article 17 of the <strong>CEF</strong> Financial Rules and Regulations, general reserves are created<br />
to cover the annual running costs of the <strong>CEF</strong> and its core program and shall amount at least<br />
to the total sum of one million euro. Financial result of the year shall be transferred to the general<br />
reserves, unless otherwise decided by the Governing Board.<br />
(C) PROPERTY, PLANT AND EQUIPMENT<br />
Recognition and measurement<br />
Items of property, plant and equipment are disclosed at historical cost, less depreciation costs<br />
and impairment losses.<br />
Costs of assets produced comprise the costs of materials, direct costs of labor, other costs that<br />
can be directly attributed to enabling the use of assets for their intended purpose, costs of disposal<br />
and removal, costs of restoring the location of the asset to its original state, and capitalized<br />
borrowing costs.<br />
Any computer software that contributes significantly to the assets’ functionality should be capitalized<br />
as part of these assets.<br />
Components of items of property, plant and equipment that have different useful lives are accounted<br />
for as separate items.<br />
Subsequent costs<br />
Costs arising from the replacement of parts of fixed assets are recognized at carrying value if<br />
future economic benefits associated with a part are likely to increase and if its historical cost can<br />
be measured reliably. All other costs (such as daily maintenance) are recognized as expenses in<br />
the income statement in the period they arise.<br />
Spare parts<br />
Spare parts and maintenance equipment of lower value with useful lives of up to one year are<br />
treated as inventory and recognized as costs in the income statement. Spare parts and equipment<br />
of significant value with estimated<br />
Depreciation<br />
Depreciation is calculated using the straight-line method based on the useful life of each component<br />
of an item of property, plant and equipment. This is the most accurate method for predicting<br />
asset usage patterns.<br />
Estimated useful lives for the current and comparative period are as follows:<br />
Depreciation rates <strong>2022</strong> 2021<br />
Computer equipment, mobile phone, copy machine 2–3 years 2–3 years<br />
Investment in premises 33 years 33 years<br />
Other equipment 3–5 years 3–5 years<br />
Depreciation methods, useful lives and residual values are reviewed at the end of the reporting<br />
period and adjusted if necessary. No changes in recording depreciation were applied in <strong>2022</strong>.<br />
(D) INTANGIBLE ASSETS<br />
Other intangible assets<br />
Other intangible assets with limited useful lives are disclosed at historical cost, less amortization<br />
costs and accumulated impairment losses.<br />
Subsequent costs<br />
Subsequent costs associated with intangible assets are only capitalized if they increase future<br />
economic benefits arising from the asset to which the cost is related. All other costs are recognized<br />
as expenses in the income statement when they arise.<br />
Amortization<br />
Amortization is calculated based on an asset’s purchase value or another value that is used<br />
instead. Amortization is recognized in the income statement using the straight-line method and<br />
is based on the useful life of intangible assets, starting from the date the asset is available for<br />
use. This is the most accurate method for predicting the patterns of future economic benefits<br />
associated with the asset.
72<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 73<br />
Estimated useful lives for the current and comparative year are as follows:<br />
Amortization rates <strong>2022</strong> 2021<br />
Software 2–3 years 2–3 years<br />
Other intangible assets 2–3 years 2–3 years<br />
Amortization methods, useful lives and other values are reviewed at the end of each business<br />
year and adjusted if necessary. No changes in recording amortization were applied in <strong>2022</strong>.<br />
(E) SHORT-TERM DEFERRED COSTS AND ACCRUED REVENUE<br />
Costs that will occur in the next financial year, but were already paid in the financial year, are<br />
recorded as short-term deferred costs.<br />
Short-term accrued revenues are revenues where costs occurred in the financial period but the<br />
formal report and reimbursement request will be submitted to the donor in the next financial year.<br />
(F) EMPLOYEE EARNINGS<br />
Liabilities from short-term employee earnings are measured on an undiscounted basis and are<br />
recognized as expenses as soon as the work is performed by an employee and comprise basic<br />
gross salary, allowances, and benefits.<br />
(G) SHORT-TERM ACCRUED COSTS AND DEFERRED REVENUE<br />
The <strong>CEF</strong> records short-term deferred revenues for revenues from projects that were received in<br />
the financial year (as advance payments) for deliverables due in the next financial year.<br />
The <strong>CEF</strong> reports short-term accrued costs for materials and services that were delivered in the<br />
financial year, but for which invoices will be received in the next financial year.<br />
The <strong>CEF</strong> created non-current provisions in 2018 for long-service bonuses and severance payments<br />
at retirement as the present value of future payments required to settle liabilities arising<br />
from employees’ service in the current and future periods, taking into account the costs of severance<br />
payments at retirement and the costs of all expected long-service bonuses until retirement.<br />
A discount rate of 4.539% was set for the calculation on December 31, <strong>2022</strong> based on the yields<br />
on 15-year corporate bonds with high credit rating in the euro area. The calculation was prepared<br />
by an outsourced actuary.<br />
Labor costs and interest expenses are recognized in the income statement, while recalculated<br />
post-employment benefits and unrealized actuarial gains or losses from severance pay are recognized<br />
as an equity item in other comprehensive income.<br />
(I) REVENUE<br />
Revenue is recognized as follows:<br />
For long-term projects, the revenue from services rendered is recognized based on the stage of<br />
completion as at the balance sheet date. Under this method, the revenue is recognized in the<br />
accounting period in which the services are rendered.<br />
Grants<br />
All types of grants are recognized in the financial statements when the <strong>CEF</strong> submits a report<br />
and/or issues a reimbursement request or a payment request. In addition, they are recognized<br />
in deferred revenues when the work was done but the report was not submitted by the end of the<br />
financial year.<br />
Deferred/accrued revenues and expenses<br />
The <strong>CEF</strong> records in short-term deferred revenues advance payments received for projects with<br />
expected deliverables in the next financial year. Short-term accrued revenues comprise revenues<br />
generated from activities delivered in the financial year that will be reported and paid for in the<br />
next financial year.<br />
The <strong>CEF</strong> records in short-term deferred costs expenses that were paid in the financial year (such<br />
as advance payments) that will occur in the next financial year, and in short-term accrued costs<br />
expenses in the financial year for which invoices have not yet arrived.<br />
(H) PROVISIONS<br />
Provisions are recognized for legal or constructive obligation as a result of a past event that can<br />
be measured reliably, and it is probable that an outflow of economic benefits will be required to<br />
settle the obligation. Provisions are determined by discounting expected future cash flows at a<br />
pre-tax rate that reflects current market assessments of the time value of money, and—where<br />
appropriate—the risks specific to the liability.<br />
(J) FINANCIAL INCOME AND FINANCIAL EXPENSES<br />
Financial income includes interest from deposits and positive exchange rate differences.<br />
Financial expenses include negative exchange rate differences.<br />
Provisions for severance payments and long-service bonuses<br />
Pursuant to the internal rules, the <strong>CEF</strong> is obliged to pay long-service bonuses and severance<br />
payments to employees and has created long-term provisions for this purpose. There are no other<br />
obligations relating to pensions. Provisions are created in the amount of estimated future severance<br />
payments and long-service bonuses, discounted at the end of the reporting period.
74<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 75<br />
(K) INITIAL APPLICATION OF NEW AMENDMENTS TO THE EXISTING<br />
STANDARDS EFFECTIVE FOR THE CURRENT REPORTING PERIOD<br />
The following new standards, amendments to the existing standards and interpretation issued<br />
by the International Accounting Standards Board (IASB) are effective for the current reporting<br />
period:<br />
• Amendments to IFRS 16 “Leases” - Covid-19-Related Rent Concessions beyond 30 June 2021<br />
(effective for annual reporting periods beginning on or after 1 April 2021)<br />
• Amendments to IFRS 3 “Business Combinations” - Reference to the Conceptual Framework<br />
with amendments to IFRS 3 (effective for annual periods beginning on or after 1 January<br />
<strong>2022</strong>),<br />
• Amendments to IAS 16 “Property, Plant and Equipment” - Proceeds before Intended Use<br />
(effective for annual periods beginning on or after 1 January <strong>2022</strong>),<br />
• Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” - Onerous<br />
Contracts - Cost of Fulfilling a Contract (effective for annual periods beginning on or after 1<br />
January <strong>2022</strong>),<br />
• Amendments to IAS 12 “Income Taxes” - Deferred Tax related to Assets and Liabilities arising<br />
from a Single Transaction (effective for annual periods beginning on or after 1 January 2023),<br />
• Amendments to IFRS 16 “Leases” - Lease Liability in a Sale and Leaseback (effective for annual<br />
periods beginning on or after 1 January 2024),<br />
• Amendments to IAS 1 “Presentation of Financial Statements” - Non-current Liabilities with<br />
Covenants (effective for annual periods beginning on or after 1 January 2024),<br />
• Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in<br />
Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its<br />
Associate or Joint Venture and further amendments (effective date deferred indefinitely until<br />
the research project on the equity method has been concluded).<br />
The <strong>CEF</strong> has elected not to adopt these new standards, amendments to existing standards and<br />
new interpretation in advance of their effective dates. The <strong>CEF</strong> anticipates that the adoption of<br />
these standards, amendments to existing standards and new interpretations will have no material<br />
impact on the financial statements of the <strong>CEF</strong> in the period of initial application.<br />
• Amendments to various standards due to “Improvements to IFRSs (cycle 2018 -2020)” resulting<br />
from the annual improvement project of IFRS (IFRS 1, IFRS 9, IFRS 16 and IAS 41) primarily with a<br />
view to removing inconsistencies and clarifying wording (The amendments to IFRS 1, IFRS 9 and<br />
IAS 41 are effective for annual periods beginning on or after 1 January <strong>2022</strong>. The amendment to<br />
IFRS 16 only regards an illustrative example, so no effective date is stated.).<br />
The adoption of these new standards, amendments to the existing standards and interpretation<br />
has not led to any material changes in the <strong>CEF</strong>s financial statements.<br />
(L) STANDARDS AND INTERPRETATIONS ISSUED BY THE IASB BUT NOT YET EFFECTIVE<br />
At the date of authorisation of these financial statements, the following new standards, amendments<br />
to existing standards and new interpretation were in issue, but not yet effective:<br />
• IFRS 17 “Insurance Contracts” including amendments to IFRS 17 issued on 25 June 2020<br />
and amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9” issued on 9 December<br />
2021 (effective for annual periods beginning on or after 1 January 2023),<br />
• Amendments to IAS 1 “Presentation of Financial Statements” - Classification of Liabilities as<br />
Current or Non-Current (effective for annual periods beginning on or after 1 January 2023),<br />
• Amendments to IAS 1 “Presentation of Financial Statements” - Disclosure of Accounting<br />
Policies (effective for annual periods beginning on or after 1 January 2023),<br />
• Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” -<br />
Definition of Accounting Estimates (effective for annual periods beginning on or after 1 January<br />
2023),<br />
* Amendments to IFRS 16 “Leases” - Covid-19-Related Rent Concessions beyond 30 June 2021 are effective for annual<br />
periods beginning on or after 1 April 2021 but earlier application is permitted, including in financial statements not yet<br />
authorised for issue at the date the amendment is issued.
76<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 77<br />
3. NOTES TO THE FINANCIAL<br />
STATEMENTS<br />
NOTE 1: INTANGIBLE ASSETS<br />
Intangible assets<br />
January 1,<br />
<strong>2022</strong><br />
New<br />
investments Write-offs Amortization<br />
EUR<br />
December 31,<br />
<strong>2022</strong><br />
Purchase value 56,258 0 -2,138 0 54,120<br />
Accumulated amortization -31,418 0 2,138 -9,315 -38,595<br />
Carrying value 24,839 0 0 -9,315 15,525<br />
Intangible assets<br />
January 1,<br />
2021<br />
New<br />
investments Write-offs Amortization<br />
December 31,<br />
2021<br />
Purchase value 57,816 0 -1,558 0 56,258<br />
Accumulated amortization -23,662 0 1,558 -9,315 -31,418<br />
Carrying value 34,154 0 0 -9,315 24,839<br />
Intangible assets comprise computer software and textbooks for TIAPS program and are recorded at purchase value. A<br />
change in position results from investment and amortization. In <strong>2022</strong> <strong>CEF</strong> didn’t have investments in intangible assets.<br />
NOTE 2: PROPERTY, PLANT AND EQUIPMENT<br />
Equipment<br />
January 1,<br />
<strong>2022</strong><br />
New<br />
investments Write-offs Depreciation<br />
EUR<br />
December 31,<br />
<strong>2022</strong><br />
Purchase value 1,331,538 30,551 -44,640 1,317,449<br />
Accumulated depreciation -697,367 43,964 -80,369 -733,773<br />
Carrying value 634,171 30,551 -676 -80,369 583,676<br />
Equipment<br />
January 1,<br />
2021<br />
New<br />
investments Write-offs Depreciation<br />
December 31,<br />
2021<br />
Purchase value 1,312,627 43,395 -24,484 0 1,331,538<br />
Equipment owned by the <strong>CEF</strong> is used to carry out the <strong>CEF</strong>’s activities and comprises office, computer and other<br />
equipment, as well as investments and improvements in the business premises. A change in the position results from<br />
purchases, write-offs and accumulated depreciation. Write-offs relate to the equipment that is no longer in use.<br />
New investments in <strong>2022</strong> comprise electronic equipment (computers). The <strong>CEF</strong>’s equipment is not pledged.<br />
Liabilities for purchase of equipment as of December 31, <strong>2022</strong> amount to EUR 0 and in amount to EUR 19,383 as<br />
of December 31, 2021.<br />
NOTE 3: TRADE RECEIVABLES<br />
Trade receivables December 31, <strong>2022</strong> December 31, 2021<br />
Banka Slovenije 0 1,517<br />
IMF 144,388 0<br />
Other receivables 63,957 64,227<br />
Total 208,345 65,744<br />
Trade receivables comprise claims from projects and other receivables from original documents and without any<br />
valuation adjustment.<br />
Trade receivables are non-interest bearing. The method of impairment did not change in <strong>2022</strong>.<br />
Trade receivables change from year to year depending on the life cycle of a project run by the <strong>CEF</strong>.<br />
Other receivables comprise VAT refunds and social security refunds.<br />
Age structure and changes in impairments of receivables<br />
EUR<br />
EUR<br />
December 31, <strong>2022</strong> December 31, 2021<br />
Aging of receivables Gross amount Impairments Gross amount Impairments<br />
Not past due 208,345 0 65,744 0<br />
Past due up to 90 days 0 0 0 0<br />
Past due from 91 to 180 days 0 0 0 0<br />
Past due from 181 to 365 days 0 0 0 0<br />
More than one year 0 0 0 0<br />
Total 208,345 0 65,744 0<br />
Accumulated depreciation -649,978 0 21,960 -69,350 -697,367<br />
Carrying value 662,649 43,395 -2,524 -69,350 634,171
78<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 79<br />
NOTE 4: CASH AND CASH EQUIVALENTS<br />
Cash and cash equivalents December 31, <strong>2022</strong> December 31, 2021<br />
Cash and deposits in EUR 3,311,982 2,241,256<br />
Cash and deposits in USD 174 1,135<br />
Cash in hand 484 315<br />
Total 3,312,640 2,242,706<br />
Cash and cash equivalents comprise short-term deposits in EUR and USD with UniCredit Bank, Ljubljana.<br />
NOTE 5: PREPAYMENTS AND OTHER ASSETS<br />
Prepayments and other assets January 1, <strong>2022</strong> Disbursement Increases December 31, <strong>2022</strong><br />
Accrued revenue (not yet invoiced) 627,127 -627,126 467,158 467,158<br />
Advance payments 719 -719 5,580 5,580<br />
Deferred costs 27,590 -8,200 5,120 24,510<br />
Total 655,436 -636,045 477,858 497,248<br />
Prepayments and other assets January 1, 2021 Disbursement Increases December 31, 2021<br />
Accrued revenue (not yet invoiced) 0 0 627,126 627,127<br />
Advance payments 23,124 -23,124 719 719<br />
Deferred costs 24,419 -24,419 27,590 27,590<br />
Total 47,543 -47,543 654,716 655,436<br />
Short-term deferred costs and accrued revenue comprise accrued income and costs that were paid in <strong>2022</strong> and will<br />
occur in 2023, such as insurance premiums.<br />
NOTE 6: EQUITY<br />
Equity (Founder’s funds) December 31, <strong>2022</strong> December 31, 2021<br />
Share capital (Founder's funds) 4,173 4,173<br />
Capital surplus 225 225<br />
Fair value reserves -10,990 -80,332<br />
General reserves 1,335,239 1,477,736<br />
Total 1,328,648 1,401,802<br />
EUR<br />
EUR<br />
EUR<br />
Share capital represents start-up contribution in the amount of EUR 4,173 and capital surplus.<br />
The negative result generated in <strong>2022</strong> was covered from the general reserve fund (as envisaged in the internal rules of<br />
the <strong>CEF</strong>). Fair value reserves from actuarial calculations of severance pay were negative in the amount of EUR 10,990<br />
at the end of <strong>2022</strong>.<br />
NOTE 7: PROVISIONS<br />
Provisions January 1, <strong>2022</strong> Decreases Increases December 31, <strong>2022</strong><br />
Reserves for severance pay 257,197 -80,178 0 177,019<br />
Other provisions 36,377 0 0 36,377<br />
Total 293,574 -80,178 0 213,396<br />
Provisions January 1, 2021 Decreases Increases December 31, 2021<br />
Reserves for severance pay 192,900 -14,853 79,150 257,197<br />
Other provisions 36,377 0 0 36,377<br />
Total 229,277 -14,853 79,150 293,574<br />
The <strong>CEF</strong> created provisions for severance payments and long-service bonuses based on the current value of its liabilities<br />
to employees (see also Note 15).<br />
The reserves for textbooks were created as <strong>CEF</strong> received some funds that were specifically dedicated to prepare<br />
textbooks for TIAPS program. Textbooks for Level 1 have been finalized in 2019 (see also Note 1). Textbooks for Level<br />
2 are being prepared to be put in use in the future. The <strong>CEF</strong> will need to keep these textbooks updated, so funds will<br />
be reserved for this also in the future.<br />
NOTE 8: GOVERNMENT GRANTS<br />
Long-term accrued costs<br />
and deferred revenue<br />
January<br />
1, <strong>2022</strong><br />
New<br />
investments<br />
Write<br />
offs<br />
Amortization<br />
and<br />
depreciation<br />
EUR<br />
EUR<br />
EUR<br />
December<br />
31, <strong>2022</strong><br />
Fund to finance amortization and depreciation 659,103 30,551 -768 -89,685 599,201<br />
Carrying value 599,201<br />
Long-term accrued costs<br />
and deferred revenue<br />
January<br />
1, 2021<br />
New<br />
investments<br />
Write<br />
offs<br />
Amortization<br />
and<br />
Depreciation<br />
EUR<br />
December<br />
31, 2021<br />
Fund to finance amortization and depreciation 696,895 43,395 -2,524 -78,664 659,102<br />
Carrying value 659,102<br />
Government grants are covering the depreciation and amortization of long-term assets.
80<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 81<br />
NOTE 9: OPERATING LIABILITIES<br />
Operating liabilities December 31, <strong>2022</strong> December 31, 2021<br />
Trade payables to suppliers in Slovenia 63,860 125,801<br />
Trade payables to suppliers outside Slovenia 3,558 19,602<br />
Liabilities to employees 152,904 138,673<br />
Other short-term liabilities 5,004 21,284<br />
Total 225,327 305,359<br />
Operating liabilities comprise accounts payable (short-term trade payables to suppliers of goods and services, including<br />
maintenance services), liabilities to employees (December salary), and other short-term liabilities (other taxes and<br />
lecturers’ fees).<br />
NOTE 10: ADVANCES PAYABLE AND OTHER CURRENT LIABILITIES<br />
Advances payable and<br />
other current liabilities January 1, <strong>2022</strong> Disbursements Increases December 31, <strong>2022</strong><br />
Deferred revenues for projects 906,611 -839,805 2,129,498 2,196,304<br />
Other accrued costs 56,446 -56,146 54,258 54,558<br />
Total 963,058 -895,951 2,183,755 2,250,862<br />
Advances payable and<br />
other current liabilities January 1, 2021 Disbursements Increases December 31, 2021<br />
Deferred revenues for projects 385,241 -385,241 906,611 906,611<br />
Other accrued costs 233,909 -233,909 56,446 56,446<br />
Total 619,151 -619,150 963,057 963,058<br />
EUR<br />
EUR<br />
NOTE 11: REVENUE FROM PROGRAM<br />
Revenue from program in <strong>2022</strong> Project** Invoiced<br />
From/To<br />
accrued<br />
revenue<br />
From/To<br />
deferred<br />
revenue<br />
EUR<br />
Net<br />
amount<br />
Ministry of Finance, Slovenia Program <strong>2022</strong> 1,000,000 0 0 1,000,000<br />
Ministry of Foreign and European<br />
Affairs, Slovenia<br />
PACT MKD, L2,<br />
EPSAM, DRM<br />
315,331 0 0 315,331<br />
Ministry of Finance, the Netherlands TPA, PIFC 227,121 0 0 227,121<br />
Banka Slovenije MFE 201,616 0 0 201,616<br />
EU FISR, FISR 2 323,873 467,158 0 791,030<br />
Ministry of Finance, Slovakia PACT MKD, L2 33,194 33,194<br />
CIPFA Conference 15,877 0 0 15,877<br />
IMF Workshops 17,645 0 0 17,645<br />
GIZ Workshops 10,632 10,632<br />
Ministry of Finance, Slovenia 244 0 0 244<br />
Other 168 0 0 168<br />
Total 2,145,701 467,158 0 2,612,859<br />
To provisions to finance<br />
amortization and depreciation<br />
From provisions to finance<br />
amortization and depreciation<br />
0 0 -30,551 -30,551<br />
0 90,452 0 90,452<br />
Total 2,145,701 557,610 -30,551 2,672,760<br />
Transfer to reserves 0 0 0 142,497<br />
Contract liabilities represent revenues received in <strong>2022</strong> for costs that will occur in 2023; EUR 877,612.72 for the<br />
FISR 2 project and EUR 1,134,559.72 for the WeLead project, both financed by European Union and EUR 166,806.63<br />
for PACT MKD, L2 co-financed by Ministry of Finance, Slovakia and 17,325.23 for projects co-financed by Ministry of<br />
Foreign and European Affairs, Slovenia.<br />
Other accrued costs relate to costs that occurred in <strong>2022</strong> and invoices not received yet, auditing services and costs of<br />
unused annual leave days that were allocated to the staff for the year <strong>2022</strong> and are to be used by August 31, 2023.<br />
** Projects: Fiscal Implications of Structural Reforms (FISR); Structural Reforms Better Integrated within Fiscal Frameworks (FISR 2); Public Accountants<br />
Certification Training at diploma level, North Macedonia (PACT MKD, L2); Efficient Public Sector Asset Management (EPSAM); Strengthening Domestic<br />
Revenue Mobilization for Sustainable Development (DRM); Strengthening Capacities in Providing Sound, Resilient and Developed Macroeconomic<br />
and Financial Environment (MFE); Public Internal Financial Control (PIFC); Tax Policy and Administration (TPA).
82<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 83<br />
Revenue from program in 2021 Project Invoiced<br />
From/To<br />
accrued<br />
revenue<br />
From/To<br />
deferred<br />
revenue<br />
EUR<br />
Net<br />
amount<br />
Ministry of Finance, Slovenia Program 2021 1,000,000 0 0 1,000,000<br />
Ministry of Foreign Affairs, Slovenia PACT MKD, L2 199,952 0 0 199,952<br />
Ministry of Finance, the Netherlands TPA, PIFC 229,001 0 0 229,001<br />
Ministry of Finance, Slovakia PACT Montenegro, FISR 61,094 0 0 61,094<br />
Bank of Slovenia MFE 202,097 0 0 202,097<br />
EU FISR 627,126 0 0 627,126<br />
CIPFA Conference 15,066 0 0 15,066<br />
IMF Workshops 74,580 0 0 74,580<br />
Total 2,408,916 0 0 2,408,916<br />
To provisions to finance amortization<br />
and depreciation<br />
From provisions to finance<br />
amortization and depreciation<br />
0 0 -40,872 -40,872<br />
0 78,664 0 78,664<br />
Total 2,408,916 78,664 -40,872 2,446,709<br />
Transfer to reserves 0 0 0 -33,694<br />
In addition, the Government of Slovenia contributed to the <strong>CEF</strong> by granting free of charge premises. This is an in-kind<br />
contribution that was not recorded in the <strong>CEF</strong> books estimated at EUR 12 per square meter (in total EUR 182,184 +<br />
VAT (EUR 40,081) = EUR 222,265.<br />
NOTE 12: FINANCIAL INCOME represents interest on deposits and exchange rate changes.<br />
NOTE 13: COSTS OF MATERIALS<br />
Costs of materials <strong>2022</strong> 2021<br />
Costs of energy 35,118 33,359<br />
Materials and spare parts 12,251 11,840<br />
Office supplies 12,254 25,813<br />
Other costs of materials 10,215 6,461<br />
Total 69,839 77,473<br />
Costs of materials and spare parts comprise spare parts for equipment and materials for maintaining the <strong>CEF</strong><br />
premises.<br />
EUR<br />
NOTE 14: COSTS OF SERVICES<br />
Costs of services <strong>2022</strong> 2021<br />
Production services costs 140,537 146,751<br />
Transport services costs for events 212,128 40,255<br />
Rents 31,891 30,636<br />
Costs of employees’ business travels 40,221 7,904<br />
Payments, bank services, insurance costs 19,079 14,852<br />
Intellectual services costs for events 130,659 212,873<br />
Intellectual services costs 66,101 19,203<br />
Costs of exhibition, advertising 8,700 3,491<br />
Personal services costs for events (authors, translators, mentors) 169,217 152,817<br />
Costs of other services for events 209,043 75,561<br />
Total 1,027,575 704,344<br />
Intellectual services for events records fees for experts, authors, translators and mentors who work from their companies<br />
and issue invoices to the <strong>CEF</strong>; and personal services for events records fees for experts, authors, translators<br />
and mentors who are paid by contract. The <strong>CEF</strong> records transport services for events (e.g. travel for participants) only<br />
when sponsored by a donor. Other services for events comprise copying materials, rent of interpretation equipment<br />
and classrooms when workshops are organized outside the <strong>CEF</strong>, as well as refreshments and lunches for participants.<br />
Intellectual services are costs of experts that support the <strong>CEF</strong> with services, such as communication, legal advice<br />
and training.<br />
NOTE 15: LABOR COSTS<br />
Labor costs <strong>2022</strong> 2021<br />
Employee salaries 1,244,674 1,183,725<br />
Employee salaries compensation 45,884 16,978<br />
Reimbursement and other employee benefits 185,989 170,127<br />
Employer's salaries contributions, taxes 188,117 173,667<br />
Other labor costs 18,203 35,887<br />
Total 1,682,867 1,580,384<br />
The <strong>CEF</strong> calculates salaries and other labor-related costs (meal and travel allowance, supplement health and pension<br />
insurance, travel insurance) according to the <strong>CEF</strong> Rules of Employment, Annex I. On December 31, <strong>2022</strong>, the <strong>CEF</strong><br />
had 34 employees. In <strong>2022</strong>, there were three international employees, who do not pay social security and personal<br />
income taxes.<br />
EUR<br />
EUR<br />
In <strong>2022</strong>, the <strong>CEF</strong> calculated costs of annual leave days that were unused in <strong>2022</strong> and are to be used by the end of<br />
August, 2023. Other labor costs comprise provisions for severance payments and long-service bonuses.
84<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 85<br />
The earnings of members of the Executive Management and Governing Board<br />
EUR<br />
Data regarding groups of persons<br />
Employees under individual employment contract<br />
December 31, <strong>2022</strong> December 31, 2021<br />
Salaries 81,294 78,214<br />
Reimbursements and other employee benefits 2,287 7,300<br />
Total 83,581 85,513<br />
Members of the Governing Board are not compensated.<br />
Number of employees by formal education level<br />
Number of employees by formal education level (EQF) December 31, <strong>2022</strong> December 31, 2021<br />
Level 4 2 2<br />
Level 5 4 3<br />
Level 6 6 6<br />
Level 7 18 18<br />
Level 8 4 4<br />
Total 34 33<br />
NOTE 16: AMORTIZATION AND DEPRECIATION<br />
EUR<br />
Amortization and depreciation <strong>2022</strong> 2021<br />
Amortization of intangible assets 9,314 9,314<br />
Depreciation of equipment 61,864 50,844<br />
Depreciation of other fixed assets 18,506 18,506<br />
Total 89,684 78,664<br />
NOTE 17: OTHER OPERATING EXPENSES<br />
EUR<br />
Other operating expenses <strong>2022</strong> 2021<br />
Contributions not related to labor costs 2,918 377<br />
Students’ work 14,328 9,239<br />
Other costs 626 526<br />
Total 17,871 10,142<br />
NOTE 18: FINANCIAL COSTS record negative exchange rate changes.<br />
4. DETERMINATION<br />
OF FAIR VALUE AND RISK<br />
MANAGEMENT<br />
The <strong>CEF</strong> is exposed to the following risks: strategic, reputational, operational and financial.<br />
The <strong>CEF</strong>’s prudent approach to risk management helps the <strong>CEF</strong> maintain its high level of operational<br />
quality and is crucial for achieving its business goals. The use of standard methodologies<br />
and risk management procedures enables quality risk assessment, timely responses, and minimum<br />
exposure of the <strong>CEF</strong> to major risks, being strategic, reputational, operational and financial.<br />
Strategic risks may arise from the pursuit of an unsuccessful business plan, poor business decisions,<br />
substandard execution of decisions, inadequate resource allocation, and/or from a failure<br />
to respond well to changes in the business environment. The <strong>CEF</strong> manages these risks by close<br />
cooperation and under supervision by the Governing Board and other stakeholders.<br />
Reputational risks may result in damages to the <strong>CEF</strong>’s reputation, which may manifest either in<br />
lost revenues or increased costs and in destruction of stakeholders’ value and trust. To minimize<br />
these risks, the <strong>CEF</strong> invests in building its ethics, security, sustainability, quality and innovation to<br />
remain capable of answering to stakeholders’ needs.<br />
Operational risks are imputed in <strong>CEF</strong> business activities through inadequate or failed internal<br />
processes, people and systems, as well as from some external events. The <strong>CEF</strong> manages these<br />
risks by strict implementation of internal procedures that include, but are not limited to, strict implementation<br />
of the principle of four eyes, introduction of the internal audit function, and training<br />
managers to improve their control functions.<br />
Financial risks are associated with financing, including budgeting, managing expenses within<br />
budgets, and overspending in case a project cannot be successfully completed without additional<br />
expenses. The <strong>CEF</strong> manages these risks by budgeting for all expenses that might occur within the<br />
project, and building sufficient reserves to cover potential loss from the project.<br />
Exposure to changes in exchange rates is presented in the table below.<br />
CREDIT RISK<br />
Credit risk Note December 31, <strong>2022</strong> December 31, 2021<br />
Cash and cash equivalents 4 3,312,640 2,242,706<br />
Trade receivables 3 208,345 65,744<br />
Total 3,520,985 2,308,449<br />
EUR<br />
NOTE 19: OTHER EXPENSES represent differences from rounded amounts paid in cash.
86<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> NOTES TO THE FINANCIAL STATEMENTS 87<br />
CURRENCY RISK<br />
EUR<br />
Currency risk December 31, <strong>2022</strong> EUR USD CHF GBP<br />
Cash and cash equivalents 3,312,640 3,312,640 0 0 0<br />
Trade receivables 208,345 208,345 0 0 0<br />
Operating liabilities 225,327 224,058 0 1,269<br />
Total 3,746,312 3,745,043 0 1,269 0<br />
EUR<br />
Currency risk December 31, 2021 EUR USD CHF GBP<br />
Cash and cash equivalents 2,242,706 2,241,571 1,135 0 0<br />
Trade receivables 65,744 65,744 0 0 0<br />
Operating liabilities 305,360 304,876 0 484 0<br />
Total 2,613,809 2,612,190 1,135 484 0<br />
Change in exchange rate would not have significant effect on the financial statements.<br />
Financial liabilities<br />
Fair value is calculated for reporting purposes based on the present value of future principal and interest payments,<br />
discounted using a market interest rate at the end of the reporting period.<br />
Trade and other receivables<br />
The fair value of operating and other receivables is calculated for reporting purposes based on the present value of<br />
future principal and interest, discounted according to a market interest rate at the reporting date.<br />
Financial instruments are categorized to three levels with respect to the calculation of their fair value:<br />
Level 1 – assets and liabilities at market price (the use of published prices arising on an active market for the same<br />
assets or liabilities);<br />
Level 2 – assets and liabilities not classified as Level 1 but whose value is determined directly or indirectly on the<br />
basis of market observables;<br />
Level 3 – assets and liabilities whose value cannot be determined on the basis of market observables and thus cannot<br />
be classified to Level 1 or Level 2.<br />
The fair value of current assets and liabilities is equal to their carrying amount.<br />
INTEREST-RATE RISK<br />
Exposure to interest-rate risk, i.e. the risk of changes in interest rates on deposits, is low. By planning investment activities,<br />
current operations and deposits, the <strong>CEF</strong>’s cash flows are coordinated and do not require borrowings.<br />
Interest-rate risk December 31, <strong>2022</strong> December 31, 2021<br />
Financial instruments at fixed interest rates<br />
Financial assets (deposits) 3,152,488 2,237,471<br />
Financial liabilities 0 0<br />
Financial instruments at fixed interest rates<br />
Financial assets 0 0<br />
Financial liabilities 0 0<br />
Total 3,152,488 2,237,471<br />
EUR<br />
FAIR VALUE<br />
Fair value<br />
Carrying<br />
amount<br />
<strong>2022</strong><br />
Fair value<br />
Carrying<br />
amount<br />
EUR<br />
2021<br />
Fair value<br />
Trade receivables 208,345 208,345 65,744 65,744<br />
Cash and cash equivalents 3,312,640 3,312,640 2,242,706 2,242,706<br />
Prepayments and other assets 497,248 497,248 655,436 655,436<br />
Trade payables 67,418 67,418 145,403 145,403<br />
Other short-term payables 5,004 5,004 21,284 21,284<br />
Advances payable and other current liabilities 2,250,862 2,250,862 963,058 963,058<br />
Total 6,341,518 6,341,518 4,093,629 4,093,629<br />
FAIR VALUE OF ASSETS<br />
Determination of fair value<br />
Given the <strong>CEF</strong>’s accounting policies and classification approach, the determination of the fair value of both financial<br />
and non-financial assets and liabilities is necessary.<br />
Fair value of assets Level 1 Level 2<br />
<strong>2022</strong><br />
Level 3 Level 1 Level 2<br />
EUR<br />
2021<br />
Level 3<br />
The fair values of individual groups of assets were determined for measurement and/or reporting purposes based on<br />
the method described below.<br />
Non-current financial assets<br />
The fair value of non-current financial assets is determined based on the closing market price as at the reporting date.<br />
Trade receivables 0 0 208,345 0 0 65,744<br />
Cash and cash equivalents 3,312,640 0 0 2,242,706 0 0<br />
Prepayments and other assets 0 0 497,248 0 655,436<br />
Total 3,312,640 0 705,593 2,242,706 0 721,179
88<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong><br />
CERTIFIED AUDITOR’S REPORT 89<br />
FAIR VALUE OF LIABILITIES<br />
Fair value of liabilities Level 1 Level 2<br />
<strong>2022</strong><br />
Level 3 Level 1 Level 2<br />
EUR<br />
2021<br />
Level 3<br />
Trade payables 67,418 0 0 145,403 0 0<br />
Other short-term payables 5,004 0 0 21,284 0 0<br />
Advances payable and other<br />
current liabilities<br />
2,250,862 0 0 963,058 0 0<br />
Total 2,323,285 0 0 1,129,744 0 0<br />
5. RELATED PARTY TRANSACTIONS<br />
The <strong>CEF</strong> does not have related parties.<br />
The earnings of members of the Executive Management and Governing Board are presented in Note 15: Labor costs.<br />
6. EVENTS AFTER THE STATEMENT<br />
OF FINANCIAL POSITION DATE<br />
There were no events after the balance sheet date that would have a material effect on the financial statements for<br />
the year <strong>2022</strong>.<br />
7. CERTIFIED AUDITOR’S REPORT<br />
Deloitte revizija d.o.o.<br />
Dunajska cesta 165<br />
1000 Deloitte Ljubljana revizija d.o.o.<br />
Slovenia Dunajska cesta 165<br />
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INDEPENDENT AUDITOR’S REPORT<br />
INDEPENDENT AUDITOR’S REPORT<br />
To the founders and the Governing Board of organization Center of Excellence in Finance<br />
To the founders and the Governing Board of organization Center of Excellence in Finance<br />
Opinion<br />
Opinion<br />
We have audited the financial statements of organization Center of Excellence in Finance (hereinafter ‘the<br />
Company’), We have audited which the comprise financial the statements of of organization financial position Center as of at Excellence 31 December in Finance <strong>2022</strong>, and (hereinafter the profit ‘the or<br />
loss Company’), statement, which statement comprise of other statement comprehensive of financial income, position the statement as 31 December of changes <strong>2022</strong>, in equity and and the profit the cash or<br />
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<br />
significant flow statement accounting for the policies. year then ended, and notes to the financial statements, including a summary of<br />
significant accounting policies.<br />
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial<br />
position In our opinion, of the Company the accompanying as at 31 December financial statements <strong>2022</strong>, and present its financial fairly, performance in all material and respects, its cash flows the financial for the<br />
year position then of ended the Company in accordance as at 31 with December International <strong>2022</strong>, and Financial its financial <strong>Report</strong>ing performance Standards and as its adopted cash flows by the for the EU<br />
(hereinafter year then ended ‘IFRS’). in accordance with International Financial <strong>Report</strong>ing Standards as adopted by the EU<br />
(hereinafter ‘IFRS’).<br />
Basis for opinion<br />
Basis for opinion<br />
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities<br />
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<br />
the Financial<br />
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<br />
the Financial<br />
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<br />
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<br />
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<br />
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<br />
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<br />
obtained is sufficient and appropriate to provide a basis for our audit opinion.<br />
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Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our global network of member firms and related entities in more than 150 countries<br />
and territories (collectively, the „Deloitte organization“) serves four out of five Fortune Global 500®companies. Learn how Deloitte’s approximately 312,000 people make an impact that matters at<br />
In www.deloitte.com.<br />
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Slovenia is one of the leading professional services organizations in the country providing services in audit and assurance, consulting, financial advisory, risk advisory, tax and related services, through over 160<br />
national 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<br />
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90<br />
<strong>CEF</strong> FINANCIAL REPORT <strong>2022</strong> CERTIFIED AUDITOR’S REPORT 91<br />
Other information<br />
Management is responsible for the other information. The other information comprises the information,<br />
included In relation in to <strong>Annual</strong> this and report, based other on our than procedures the financial performed, statements we and report our that: auditor’s report thereon.<br />
Other information are, in all material respects, consistent with the financial statements;<br />
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<br />
thereon. Based on our knowledge and understanding of the Organization and its environment obtained in<br />
the audit, we did not identify any material misstatement of fact related to the other information.<br />
In connection with our audit of the financial statements, our responsibility is to read the other information<br />
and, Responsibilities in doing so, of Management assess whether and the Governing other Board information the is Financial materially Statements inconsistent with the financial<br />
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<br />
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<br />
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<br />
performed, error. we report that:<br />
In preparing the financial statements of the Organization, management is responsible for assessing its<br />
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<br />
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<br />
operations, • based or has on no our realistic knowledge alternative and but understanding to do so. of the Organization and its environment obtained<br />
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<br />
approving audited information. annual report.<br />
Responsibilities Auditor’s Responsibilities of Management for the and Audit Those of the Charged Financial with Statements Governance for the Financial Statements<br />
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<br />
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<br />
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.<br />
audit conducted in accordance with auditing rules will always detect a material misstatement when it<br />
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<br />
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<br />
basis of of accounting these financial unless statements. management either intends to liquidate the Organization or to cease operations,<br />
or has no realistic alternative but to do so.<br />
As part of an audit in accordance with auditing rules, we exercise professional judgment and maintain<br />
professional scepticism throughout the audit. We also:<br />
Governing Board is responsible for overseeing the Organization’s financial reporting process and for<br />
approving Identify audited and annual assess report. the risks of material misstatement of the financial statements, whether due to<br />
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit<br />
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<br />
detecting a misstatement resulting from fraud is higher than for one resulting from error, as fraud<br />
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<br />
free from internal material control. misstatement, whether due to fraud or error, and to issue an auditor’s report that<br />
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit<br />
Obtain an understanding of internal control relevant to the audit in order to design audit<br />
conducted<br />
procedures<br />
in accordance<br />
that are<br />
with<br />
appropriate<br />
International<br />
in the circumstances,<br />
Standards on<br />
but<br />
Auditing<br />
not for<br />
will<br />
the purpose<br />
always<br />
of<br />
detect<br />
expressing<br />
a material<br />
an<br />
misstatement<br />
opinion<br />
when<br />
on the<br />
it exists.<br />
effectiveness<br />
Misstatements<br />
of the Organization's<br />
can arise from<br />
internal<br />
fraud or<br />
controls.<br />
error and are considered material if,<br />
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of<br />
users taken Evaluate on the the basis appropriateness of these financial of accounting statements. policies used and the reasonableness of accounting<br />
estimates and related disclosures made by management.<br />
<br />
Conclude on the appropriateness of management’s use of the going concern basis of accounting<br />
and, based on the audit evidence obtained, whether a material uncertainty exists related to<br />
events or conditions that may cast significant doubt on the Organization’s ability to continue as a<br />
going concern. If we conclude that a material uncertainty exists, we are required to draw<br />
attention in our auditor’s report to the related disclosures in the financial statements or, if such<br />
As part of an audit in accordance with International Standards on Auditing, we exercise professional<br />
judgment and maintain professional scepticism throughout the audit. We also:<br />
• 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<br />
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<br />
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<br />
not detecting a material misstatement resulting from fraud is higher than for one resulting from<br />
Evaluate the overall presentation, structure and content of the financial statements, including the<br />
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the<br />
disclosures, and whether the financial statements represent the underlying transactions and<br />
override of internal control.<br />
events in a manner that achieves fair presentation.<br />
• Obtain an understanding of internal control relevant to the audit in order to design audit<br />
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<br />
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<br />
identify • during Evaluate our audit. the appropriateness of accounting policies used and the reasonableness of accounting<br />
estimates and related disclosures made by management.<br />
• Conclude on the appropriateness of management’s use of the going concern basis of<br />
accounting and, based on the audit evidence obtained, whether a material uncertainty exists<br />
DELOITTE REVIZIJA related d.o.o. to events or conditions that may cast significant doubt on the Organization’s ability to<br />
continue as a going concern. If we conclude that a material uncertainty exists, we are required<br />
Yuri Sidorovich to draw attention in our auditor’s report to the related disclosures in the financial statements<br />
Certified auditor or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the<br />
audit evidence obtained up to the date of our auditor’s report. However, future events or<br />
conditions may cause the organization to cease to continue as a going concern.<br />
Ljubljana, • 6 Evaluate May <strong>2022</strong> the overall presentation, structure and content of the financial statements, including<br />
the disclosures, and whether the financial statements represent the underlying transactions<br />
and events in a manner that achieves fair presentation.<br />
We communicate with Governing Board regarding, among other matters, the planned scope and timing of<br />
the audit and significant audit findings, including any significant deficiencies in internal control that we<br />
identify during our audit.<br />
DELOITTE REVIZIJA d.o.o.<br />
Yuri Sidorovich<br />
Certified auditor<br />
Ljubljana, 25 May 2023
92 <strong>CEF</strong> ANNUAL REPORT <strong>2022</strong><br />
APPENDIX: IMF FAD ADVISORS’ REPORT, <strong>2022</strong> 93<br />
APPENDIX:<br />
IMF FAD ADVISORS’<br />
REPORT, <strong>2022</strong><br />
The <strong>CEF</strong> hosts two IMF FAD Regional Advisors:<br />
Yasemin Hürcan, covering PFM, and Jim Sorensen,<br />
covering revenue administration (RA). Together with<br />
three other IMF colleagues, Bojan Pogačar (PFM)<br />
and Dmitri Jegorov (RA), who are based at the Joint<br />
Vienna Institute in Vienna, and the resident advisor Jan<br />
Hansen, based in Banja Luka, Bosnia and Herzegovina,<br />
they facilitate the implementation of an IMF project to<br />
support capacity development (CD) in the areas of PFM<br />
and RA in SEE. The beneficiary countries are Albania,<br />
Bosnia and Herzegovina, Kosovo, Montenegro, North<br />
Macedonia, and Serbia.<br />
This project is delivered with financial support from<br />
the EU and the Swiss State Secretariat for Economic<br />
Affairs (SECO). 1 A set of delivery milestones are agreed<br />
on for each country in terms of reform progress in the<br />
areas that are addressed by the project. The program’s<br />
delivery model involves IMF Headquarters’ (HQ) led<br />
CD missions to the beneficiary countries; regular CD<br />
visits by IMF Regional Advisors; CD support provided<br />
remotely; and a considerable number of CD visits by<br />
short-term IMF experts.<br />
In <strong>2022</strong>, IMF FAD Advisors continued to support the authorities<br />
in addressing the impact of the pandemic while<br />
also pursuing longer-term reforms. With the resumption<br />
of travel, CD requests have increased. Leveraging<br />
the experience from the previous year, the IMF maintained<br />
frequent contact with the authorities to identify<br />
relevant areas of support and quickly accommodated<br />
new CD requests that appeared due to modified country<br />
priorities. With improving health conditions, the<br />
authorities also started to resume longer-term reform<br />
efforts. Renewed efforts in improving tax compliance<br />
with the development of comprehensive Compliance<br />
Improvement Plans (CIP), based on comprehensive<br />
risk analysis and improved use of third-party data, were<br />
seen in RA, while renewed efforts to strengthen fiscal<br />
risk management and public investment management<br />
(PIM) were seen in PFM.<br />
For revenue administration, in <strong>2022</strong> capacity development<br />
focused on building capabilities in all core RA<br />
processes and providing strategic advice on each administration’s<br />
medium-term reform agenda. In addition to<br />
strengthening reform capabilities, adopting more datadriven<br />
and risk-based approaches, and better managing<br />
large taxpayers, attention was given to key administrative<br />
functions by enhancing audit methodologies, improving<br />
the arrears management function, and debt collection<br />
procedures, all contributing to sustained revenue<br />
mobilization.<br />
In PFM, fiscal risk management continued to be the<br />
main area of CD support. While the impact of the pandemic<br />
has lessened somewhat, the appearance of new<br />
shocks in the energy sector has stressed once again<br />
the importance of fiscal sustainability in developing<br />
strong frameworks for managing fiscal risks. Some<br />
State-Owned Enterprises (SOE)-related risks have materialized,<br />
requiring increased budget support and underscoring<br />
the importance for ministries of finance across<br />
the region to improve their SOE monitoring and reporting<br />
practices. Fiscal risks CD also covered fiscal risks from<br />
Public-Private Partnerships, court decisions and arrears.<br />
Regional advisors continued to play a key role in<br />
maintaining engagement with authorities to discuss the<br />
implementation of previous recommendations, identify<br />
areas for potential support, and agree on upcoming CD<br />
engagements. Workshops and webinars also played<br />
a key role to provide training in common areas, such<br />
as cash management and high-wealth individuals,<br />
introducing authorities to new topics like the new climate<br />
PIMA module, and fostering peer-to-peer learning, for<br />
example, through the establishment of the community<br />
of practice in fiscalization.<br />
The IMF advisors cooperate closely with the <strong>CEF</strong> on<br />
training needs assessments in the areas of PFM and RA<br />
in SEE countries, and the design and delivery of training<br />
and other input to some of the <strong>CEF</strong>’s learning activities.<br />
1 Phase II of the project ended in December <strong>2022</strong>. Phase III started in January 2023 and will end in December 2026.
Published by: <strong>CEF</strong><br />
Production editors: Urška Miklič & Irena Lukač<br />
Text editor: Kadri Põdra<br />
Design: Sonja Eržen<br />
Photographs: <strong>CEF</strong> Archive, Aleksander Kovačič & Urška Rahne<br />
Illustrations: Alenka Oblak & Mireille van Bremen<br />
Printing: Tiskarna Januš<br />
June 2023<br />
<strong>CEF</strong> VALUES<br />
IN OUR WORK, WE FOLLOW THE CORE VALUES THAT WE HAVE<br />
DEFINED TOGETHER.<br />
TRUST<br />
We trust ourselves and each other in our goal to deliver highquality<br />
programs, support regional cooperation, and work<br />
effectively with our partners.<br />
TEAM SPIRIT<br />
We respect, accept and support each other in combining our<br />
diverse roles and capacities.<br />
FOCUS ON RESULTS<br />
We set clear and measurable goals with specific action plans<br />
and efficient use of resources, while also considering staff<br />
interests and capabilities.<br />
ACCOUNTABILITY<br />
By aligning our integrity with clear organizational expectations,<br />
we take responsibility for what we do, how we do it and how<br />
this affects the world around us.<br />
OPPORTUNITY TO GROW<br />
We are committed to supporting an environment where we<br />
grow as individuals and team(s).<br />
<strong>CEF</strong> VALUES
ABOUT US<br />
The <strong>CEF</strong> is an international organization with the mission<br />
to support capacity development of public officials and<br />
their institutions in South East Europe through learning and<br />
knowledge sharing. We are a leader in applying people-centered<br />
learning approaches and holding the know-how of becoming<br />
and being a learning organization. As a key learning<br />
partner for public officials in the <strong>CEF</strong> constituency in SEE,<br />
we have specified four thematic priorities for our work: public<br />
financial management, central banking, leadership for<br />
managing reforms and learning and knowledge ecosystems.<br />
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