site.btaNational Audit Office Finds Inefficient Control on Absorption of EU Funding for Competitiveness

National Audit Office Finds Inefficient Control on Absorption of EU Funding for Competitiveness

Sofia, June 22 (BTA) - The National Audit Office (NAO) has found
 the control on the absorption of EU funding for projects for
improving the competitiveness and the business environment in
Bulgaria, to be inefficient. The NAO conclusions are based on an
 audit at the Economy Ministry department in charge of EU
funding on competitiveness.

Such projects are funded by Operational Programme for
Development of the Competitiveness of the Bulgarian Economy in
2007-2013. The audit covered the period from the start of the
programming period to December 31, 2012.


The priority axis that was in the focus of the audit, is aimed
to encourage investments in modern technologies and improving
managerial skills. Beneficiaries are micro-, small and mid-sized
 companies and sole traders headquartered in Bulgaria.

The said priority axis of the operational programme for
competitiveness during the audited period had a budget of 1.2
billion leva.  5,616 projects applied for funding and 1,875
projects were approved and signed funding agreements. They
received 980,704,747 leva which was 70.44 per cent of the
adjusted budget for this priority axis.

Having checked the OP procedures and the approved projects, the
NAO auditors found that the criteria for assessing the
candidates did not give the decision-making authorities exact
instructions and were not conducive to objective assessment of
the projects.

They also found that the assessment of project proposals were
largely unjustified.

NAO concluded that no rules had been set down for designating a
chairman and members of the evaluating commissions, to make sure
 that their background and experience matches the specifics of
the procedures for selection of projects.

Internal control at the Executive Agency for Small and Mid-sized
 Companies was found to be inadequate; protocols and evaluation
reports were frequently revised.

The report from the NAO audit is available on the NAO website,
at www.bulnao.government.bg.