R E P U B L I C O F B U L G A R I A ANNUAL REPORT MINISTER OF STATE ADMINISTRATION FOR THE PUBLIC ADMINISTRATION

22000044

ANNUAL REPORT

FOR THE PUBLIC ADMINISTRATION

C O N T E N T S

I. Organization and efficiency of the activities of the administration ...... 2 I.1. Planning and implementation of the strategic goals in the activities of the administration 3 I.2. Management of the financial and human resources for the realization of the strategic framework 9 I.3. Mechanisms for interdepartamentall coordination and agreement 13

II. Administrative service delivery ...... 18 II.1. Level of development of the organization of administrative service delivery 18 II.2. Administrative regulation 24 II.3. Fees and prices of the administrative services 31 II.3.A. Types of fees and specified prices for services delivered by administrations at central level...... 32 II.3.B. Types of fees and established prices for services delivered by the territorial administration...... 33 II.3.C. Fees and prices the collection of which has been transferred to other organizations, empowered to deliver the specified services ...... 34 II.3.D. Free of charge services delivered by the administration ...... 35 II.4. Knowledge management 35

III. Register of the administrative structures and the acts of the executive http://www1.government.bg/ras ...... 39

IV. Civil service ...... 45 IV.1. Number of employees 46 IV.2. Age and educational structure 54 IV.3. Attestation of the employees through performance appraisal 57 IV.4. Additional remuneration for the employees 59 IV.5. Additional remuneration for the employees 59 IV.6. Training 63

V. Administrative capacity for the application of the EU legislation...... 67 V.1. Basic activities related to the institution building and strengthening of the administrative capacity for the enforcement of the EU legislation 67 V.1. A. Establishing New Structures in Compliance with the acquis communautaire transposition ...... 67 V.1.B Establishment of new units in existing administrative structures ...... 67 V.1.C. Establishment of new structures for application of acquis outside the public administration ...... 73

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V.2. Strengthening of the administrative capacity for application of the harmonized legislation through training 73

VI. Access to public information...... 75

VII. Anticorruption measures ...... 79

VIII. Information technologies ...... 85 VIII.1. National Public Administration Network 85 VIII.2. Institutionalized units for the development of the information and communication technologies 86 VIII.3. Availability of computers 86 VIII.4. Local Area Networks 87 VIII.5. Electronic information exchange 87 VIII.6. Access to INTERNET 88 VIII.7. Internet web-sites of the administration and access to Intranet 89

IX. E-Government ...... 90 IX.1. Commitment to building e-Government 90 IX.2. Normative documents related to ICT development and e-Government 92 IX.3. Management of the e-Government implementation process 93 IX.4. Roles, Rights and Obligations in E-government Projects Implementation 94 IX.5. Strategic investments and infrastructure development 96 IX.6. Modern Internet Solutions and Partnerships 96 IX.7. Electronic signature 97

X. Projects supporting the modernization of the state administration ...... 98

XI. Best practices in the public administration (benchmarking)...... 102

XII. Conclusions and Recommendations...... 106 XII.1. Organization and efficiency of the activities of the administration 106 XII.2. Administrative service delivery 107 XII.3. Register of the administrative structures and the acts of the executive authorities 108 XII.4. Civil service 109 XII.5. Administrative capacity for the application of the EU legislation 110 XII.6. Access to public information 111 XII.7. Anticorruption measures 112 XII.8. Information technologies 112 XII.9. e-Government 113 XII.10. Projects supporting the modernization of the state administration 113

ii D I A G R A M S

I. Organization and efficiency of the activities of the administration...... 2 diagram I-1. Strategic framework in the administrations of the executive...... 3 diagram I-2. Knowledge for the strategic framework in the administration at central level...... 4 diagram I-3. Knowledge for the strategic framework by the administrations at territorial level...... 5 diagram I-4.Achievement of the strategic goals in the administrations at central level in 2004 ...... 5 diagram I-5. Achievement of the strategic goals in the regional administrations in 2004...... 6 diagram I-6. Achievement of the strategic goals in the municipal administrations in 2004 ...... 6 diagram I-7.Transfer of functions to other administrative structures ...... 9 diagram I-8.Human and financial resources in the territorial administration ...... 10 diagram I-9. Availability of the needed financial resources in the administration ...... 10 diagram I-10. Financial provision with budget funds in the administration at central level...... 11 diagram I-11. Comparative data for the financial provision with budget resources in the central administration for the different years...... 11 diagram I-12. Financial provision with budget funds for the regional administrations ...... 12 diagram I-13. Comparative data for the financial provision with budget funds in the regional administrations for different years...... 12 diagram I-14. Financial provision with budget funds for the municipal administrations...... 12 diagram I-15. Comparative data for the financial provision with budget funds in the municipal administration for different years...... 12 diagram I-16. Scheme for financial provision of the predetermined goals with shortage of the specifically planned budget funds ...... 13 diagram I-17. Financial provision of the predetermined goals with shortage of the specifically planned budget funds ...... 13 II. Administrative service delivery ...... 18 diagram II-1. Comparative data for the administrative structures providing for one point of access in administrative service delivery ...... 19 diagram II-2. Stages of development of the administrative service delivery system in the administration in the year 2004...... 19 diagram II-3. License regimes brought by the central administrations into line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities in the year 2004...... 27 diagram II-4. Administrations at central level that have brought the registration regimes in line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities in the year 2004...... 29 III. Register of the administrative structures and the acts of the executive http://www1.government.bg/ras ...... 39 diagram III-1. Access to the Register of the administrative structures and the acts of the executive...... 39 diagram III-2. Number of visits in the sites for the different information categories in the Register of the administrative structures and the acts of the executive ...... 39 diagram III-3. Reflection in the job descriptions of the obligations of the employees who make entries of data into the Register ...... 44 IV. Civil service ...... 45 diagram IV-1. Ratio of the job positions for civil servants to job positions on the Labour Code within the total number of...... 46 diagram IV-2. Ratio of the job positions for civil servants to job positions on the Labour Code within the total number of...... 46 diagram IV-3. Comparative data for the introduction of the status of civil servants in the administrations of the executive...... 49 diagram IV-4. Filled in positions and vacant positions in the administration ...... 50 diagram IV-5. Ratio between women and men civil servants ...... 51 diagram IV-6. Ration of man and women working under the Labour Code ...... 51 diagram IV-7. Preferred method for the competition in terms of number of announcements for civil servants ...... 51 diagram IV-8. Methods chosen in combination in announcing the competitions for the civil servants (according to data from the Register of the administrative structures)...... 52

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diagram IV-9. The most preferred areas of university education in announcing competitions for positions to be occupied by applicants to be employed for a first time in the civil service ...... 52 diagram IV-10. Ratio of the employees in the public administration by age groups...... 54 diagram IV-11. Ratio of the employees at managerial positions in the administration by age groups versus the total number of employees ...... 55 diagram IV-12. Educational background of the employees in the public administration ...... 56 diagram IV-13. Educational degree of the employees in the public administration...... 56 diagram IV-14. University education of the employees in the different specialty areas for 2004 ...... 57 diagram IV-15. Percentage ratio of the employees with evaluations versus the total number of appraised employees in the administration...... 58 diagramIV-16. Allocation of the additional remuneration in the administration (including additional financial incentives, allowances, benefits, etc.)...... 60 diagramIV-17.Allocation of the additional remuneration in the administration ...... 61 diagram IV-18. Percentage ratio of the total amount of the additional remuneration paid (including additional financial incentives, allowances, benefits, etc.) versus the total annual amount of the gross salary in the administration at central level ...... 62 diagram IV-19. Percentage ratio of the total amount of the additional remuneration paid (including additional financial incentives, allowances, benefits, etc.) versus the total annual amount of the gross salary in the regional administrations...... 63 diagram IV-20. Ratio of the employees who have passed compulsory and specialized training ...... 64 diagram IV-21. Number of employees who have passed specialized training in 2004 ...... 65 diagram IV-22. Percentage of the employees who have passed training and continue to work for the administration...... 65 VI. Access to public information...... 75 diagram VI-1. Number of the structures in which applications for access to public information have been filed...... 75 diagram VI-2. Applications filed for access to public information ...... 76 diagram VI-3. Number of decisions concerning the applications for access to public information ...... 76 diagram VI-4. Number of refusals for access to public information...... 77 diagram VI-5. Reasons for refusal of access to public information ...... 77 diagram VI-6. Брой на жалбите срещу отказ за предоставяне на обществена информация...... 78 VII. Anticorruption measures...... 79 diagram VII-1. Number of staff of the inspectorates ...... 80 diagram VII-2. Percentage of the inspectorate where the results of the activities are publicly announced...... 80 diagram VII-3. Total number of obtained signals for corruption ...... 80 diagram VII-4. Distribution of the signals for corruptions by types of administrations ...... 81 diagram VII-5. Availability of means for submission of signals for corruption ...... 81 diagram VII-6. Distribution of the various means for submission of signals in the respective number of administrations ...... 81 diagram VII-7. Number of disciplinary sanctions imposed because of violation of the ethical rules and norms established with the Code of conduct of the employees in the public administration...... 82 diagram VII-8. Disciplinary sanctions imposed to civil servants in 2004 ...... 82 diagram VII-9. Disciplinary sanctions imposed to employees on a Labour Code in 2004...... 82 diagram VII-10. Disciplinary sanctions imposed in 2004 as compared to 2003 ...... 82 diagram VII-11. Total number of civil servants who failed to fulfill their obligation for disclosure of their property status under the provisions of Art. 29 of the Civil Servant’s Act ...... 83 diagram VII-12. Number of civil servants who failed in 2004 to fulfill their obligation under Art. 29a of the Civil Servant’s Act to declare commercial, financial or other business interests which they or related persons have in respect of the functions of the administration in which they work ...... 84 diagram VII-13.Number of challenges to participate during the discussion, preparation and decision making under the provisions of Article 29a paragraph 2 of the Civil Servant’s Act where the civil servant or related persons is interested in the respective decision or when he/she has with the interested persons relationships raising well-founded doubts in his/her impartiality in 2004 ...... 84 VIII. Information technologies ...... 85 diagram VIII-1. Institutionalized units for the development of the information and communication technologies\...... 86 diagram VIII-2. Employees working in the ICT field in the administration ...... 86

iv diagram VIII-3. Level of computer availability in the administration ...... 87 diagram VIII-4. Processor frequency of the computers in the administration...... 87 diagram VIII-5. Necessity for legal regulation for the electronic information exchange in the administration...... 88 diagram VIII-6. Access to Internet in the administration...... 88 diagram VIII-7. Internet web page of the administrations...... 89 diagramVIII-8. Use of Intranet in the administration...... 89 IX. E-Government ...... 90 diagram IX-1. Readiness of the administration for the introduction of e-Government...... 92 diagram IX-2. Development of normative documents related to the Development of ITC and the e-Government...... 93 diagram IX-3. Management of the process for application of the e-Government...... 94 diagram IX-4. Personnel for implementation of the e-Government projects ...... 95

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The main role of the modern state in the democratic, market-oriented economy is in the creation of fair and equal conditions and standards as a basis for the everyday life of the citizens and for the economic activities of the people and the enterprises. Good management is the establishment of a legal framework and institutional arrangements for the acquisition of socially valuable goals, acceptable for society with absolute transparency on the part of the administration and accountability for the public money invested. The basic instrument used to achieve good management is the law. The approval and the enforcement of the normative acts, their impact analysis and the availability of adequate mechanisms for their improvement as well as procedures for compensations for damages are among the important tasks of the modern state. Governed by the strategic government goal for successful completion of the negotiations for membership in the European Union and integration in the Community structures, the Government had approved a Strategy for modernization of the public administration – from accession to integration. It has set the basic strategic goals for the administrative reform for the Bulgarian public administration to become a modern, politically neutral, professional and accountable administration, facing the needs of society. The Strategy is based on the good management principles, namely rule of law, reliability and predictability, openness and transparency, accountability, efficiency and effectiveness, partnership and coordination. In compliance with the principles of openness, accountability and transparency and in enforcement of the Law for the Administration, Article 61, point 3, the chief executives of the administrative structures every year report to the Minister of State Administration for their administrations. The present 2004 report is the fifth report for the functioning of the public administration. The information contained in it is based on data presented by all administrative structures of the executive. Further to these data, the data from a sociological survey of the public opinion for the satisfaction of the citizens from the activities of the administration and of the attitude of the employees in the public administration towards the reforms implemented is considered in a comparative perspective. The sociological survey has been made by the National Centre for the Public Opinion Studies (NZIOM) in March 2005 upon the request of the Minister of State Administration. The report is structured into 10 sections, reflecting the individual strategic directions, outlined in the Strategy for modernization of the public administration – from accession to integration, 2003-2006. The report includes information for the organization and the efficiency of the administration, the administrative service delivery, the Register of the administrative structures, the civil service, the administrative capacity for the enforcement of the acquis communautaire, access to public ainformation, anticorruption measures, information technologies, e-Government, the projects supporting the modernization of the public administration. Respective conclusions are made and recommendations are proposed. In the year 2004 a review was made of the implementation of the Action Plan to the Strategy for the period September 2003 – September 2004. Implementation of the planned activities in its two parts has been reported. The Action Plan was corrected and some measures and terms have been updated in response to the need for extension of the terms for the measures depending on the approval of drafts of laws by the National Assembly, as well as the introduction of new measures in the Plan stemming from decisions of the Council for modernization of the public administration or from the requirements related to our future membership in the EU. With its Decision Nr. 924 dated 26th November 2004 the Council of Ministers has approved the report for the implementation of the updated Action Plan for the reported period and an Action Plan for the implementation of the Strategy for the period 2004 – 2006.

2004 Annual Report for the Public Administration 1

I. Organization and efficiency of the activities of the administration

The total number of the administrative structures at central level to 31st December 2004 is 193. Sixteen of them are ministries, 19 are structures under the Council of Ministers, 152 are structures under ministers and 5 are governmental institutions created with a law which have functions related to the execution of the executive power. Seven state agencies, 3 state commissions and 9 administrative structures created with a law or CoM decree are functioning under the Council of Ministers. Thirty six executive agencies, 2 commissions and 114 administrative structures created with a law or CoM decree are functioning under the ministers. The regional administrations are 28, the municipal ones – 264, and the regional administrations of municipalities – 35. In 2004, 2 structures created with a law under the CoM have been transformed into executive agencies – The Agency for Small and Medium Enterprises and the Foreign Investment Agency. In 2004, 3 new executive agencies have been created under ministers (the Registration Agency, the Public Procurement Agency and the Executive Agency for Transplantation) and with a law or with CoM decree 2 new structures have been created (“Migration” Directorate under the Minister of Interior and the Center “Children Medication Fund” under the Minister of Health). In the year 2004, four of the existing administrative structures (Agency for Small and Medium Enterprises, Executive Agency for Promotion of Commerce, Foreign Investment Agency and National Film Centre) have been transformed into executive agencies as follows: Executive Agency for Promotion of the Small and Medium Enterprises, Bulgarian Investment Agency and Executive Agency “National Film Centre”. The Directorate General “Execution of Punishments” under the Minister of Justice has been closed down as an independent legal entity and has been transformed into an unit within the structure of the Ministry of Justice. From this year the administrations of the executive branch are presenting the reports for their administrations through an Internet-based system. It is for a first time that information was gathered from the municipal administrations of the regions in Sofia, Plovdiv and Varna. Three structures at central level have not presented their reports for the year 2004 – the Diplomatic Institute under the Minister of Foreign Affairs (the Institute had not confirmed its report in the system), the National institute for research on wine and alcoholic drinks, Executive agency “Bulgarian Accreditation Office” (no registration in the system has been made). No information has been requested from the Editor’s Office “Normative Acts”, “Military Information” Service and “Security-military police and military counter intelligence” service, and the Centre “Children Medication Fund” has been created at the end if 2004. No report for the year 2004 has been presented by 43 municipal administrations. Out of them municipal administrations Avren, Bansko, Berkovitza, Borino, Borovo, Vetovo, Glavinitza, Dolna Mitropolija, Dulovo, Kaolinovo Kaspichan, Medkovetz, Opaka, pernik, Rodopi, Rudozem, Sadovo, Sitovo, Strumjani, Suvorovo, Harmanli and Tzarevo have not confirmed their reports in the system; municipal administrations Belovo, Nessevbar, Pleven and Trjavna have not entered any data, and municicpal administrations Bregovo, velingrad, Dupnitza, Elin Pelin, Levski, Makresh, Mineralni bani, Pirdop, Popovo, Primorsko, Rila, Samuil, Sapareva banja, Simitli, Stambolovo, Tervel and Haskovo have not been registered in the system. Seven municipal administrations of regions have not presented their 2004 reports. Out of them Mladost region of Varna municipality and regions Izgrev, Iskar, Ljulin and Pancharevo of Sofia

2 2004 Annual Report for the Public Administration municipality have not confirmed their reports in the system, and region Primorski of Varna municipality and region Centralen of Plovdiv municipality have not been registered.

I.1. Planning and implementation of the strategic goals in the activities of the administration1 The efficient performance of the administration is impossible without strategic framework wherein every administrative structure has defined its goals and expected results. Efficiency consists mainly in the successful results of the public administration in its efforts to achieve the goals and solve the social problems imposed to it. It is most often referred to the analysis and evaluation of the social policies and the appraisal as how well they have been implemented by the administration and the employees. The presence of mission, vision and strategic goals, presented to the society in a plain manner is of substantial importance for the administration to achieve greater efficiency. Mission is expressed in the purport for an administration to exist. Vision presents the desired achievement, to which the administration aspires in order to reach to socially valuable results. The strategic goals should reflect the ways, the terms and the means with which the vision will be achieved. The presence of clearly defined strategic goals assists that the planned results be achieved and facilitates the accountability and the control of the performance. In order to make an assessment for the achievement of the desired results, they have to be compared against the predetermined goals and indicators. The evaluation indicators have to be clearly described and transparently applied. The chief executives should have the capacity to trace the costs for the respective activity and the final results as an integral part of the management activity. The analysis of the information, presented by all administrations of the executive branch showed the following. Hundred percent of the administrative structures at central level point to the presence of clear strategic framework of the goals and the results, which is a proof for the importance recognized by their executives of the strategic planning as an effective management tool. At territorial level all regional and 98% of the municipal administrations point that they have a clear strategic framework of the goals and the results. Two municipal administrations (Nikolaevo and Tutrakan) do not have a strategic framework and at the moment are on the way to develop a strategy and a development plan. Vazrazhdane region of the Sofia municipality is governed by the strategic framework and the goals of Sofia municipality.

presence of a strategic framework lack of a strategic framework 100% 100% 98% 100%

90%

80%

70%

60%

50%

40%

30%

20%

10% 0% 0% 2% 0% central administration regional administrations municipal administrations

diagram I-1. Strategic framework in the administrations of the executive

1 The information presented in the first part of the report is based on data presented by 185 structures at central level, 28 regional administrations and 219 municipal administrations. It should be noted that some structures have left some of the questions unanswered. 2004 Annual Report for the Public Administration 3

The quality of the formulated goals however is still not at a very high level. Goals are prevailing being formulated rather as tasks or operative goals related and directed to the internal organization of work and structuring, for example “filling the vacancies in accordance with the approved staff sheets”, “improvement of employees’ qualification” (Public Procurement Agency, the Cadastre Agency, regional administration Lovech, Koprivshtitza municipality, Gramada municipality, Hitrino municipality, etc.). The strategic goals should be directed towards society and should correspond to its needs and expectations. An example here is the Ministry of Economy where with an order of the minister a model of annual planning has been introduced, related to the three strategic goals of the ministry directed towards accelerated economic growth, improvement of the business climate and effective protection of the consumers interests. Other examples for well formulated strategic goals are construction of road infrastructure and open-air kindergartens (Pomorie municipality, Alphatar municipality), building of an “one-stop shop” servicing center for the citizens (Regional inspection for the environment and waters – Blagoevgrad, Lom municipality, Radomir municipality, etc.), building of an overall integrated information system for better coordination between the units within the medical help units (Ministry of Health), development of ecotourism – Cultural Complex “Varbitza” (Varbitza municipality), planned monitoring of the cultural monuments (National Institute for Cultural Monuments). The participation of the employees in the formulation of the goals and the results is an important condition for raising the administration performance efficiency. Knowledge for the strategic goals on the part of the employees leads to the relation between the organization goals and the individual goals of every employee and helps to direct their attention to the final result. All employees know the goals and the results in 90% of the administrative structures at central level. In 10% of the administrative structures, the strategic framework has been communicated only to the managerial staff. Lack of knowledge for the strategic framework on the part of the remaining employees is an obstacle to the effective organization of the work and the achievement of better results. Furthermore, the communication of the goals and the results of the administration to the society as well is a prerequisite for raising its trust for the administration and for the creation of opportunities for control. The planned results and the actually achieved ones for the performance of the administration have to be accessible to the public and to be published.

81% 86% 90% Strategic framework communicated to all 90% employees 80% 70% Strategic framework communicated only to the managerial staff 60% 50% Lack of strategic framework 40% 30% 16% 13% 20% 10% 10% 3% 1% 0% 2002 2003 2004

diagram I-2. Knowledge for the strategic framework in the administration at central level

Concerning the territorial administration, in 26 (93%) regional and 170 (77%) municipal administrations all employees have been familiarized with the goals and results of the respective structure. In 2 (7%) regional and 51 (23%) municipal administrations the strategic framework has been communicated only to the managerial staff.

4 2004 Annual Report for the Public Administration 200 170 regional administrations 143 municipal administrations 150

100 52 51 50 24 26 2 0 All employees 2003 All employees 2004 Managerial staff 2003 Managerial staff 2004

diagram I-3. Knowledge for the strategic framework by the administrations at territorial level

From the data above one can conclude that there is 9% increase of the number of structures at central level in which all employees know the goals and the expected results compared to the year 2003. With 27 more are the structures at municipal level where all employees know the goals and the results compared with the year 2003. In the sociological survey of NZIOM, made among the employees in the administration, 98.6% of the inquired employees say that they are acquainted with all priorities (73.3%) or some priorities (25.3%) of the administration they are employed in. The implementation of the strategic goals in the administrative structures at central level is shown in the diagram below.

all strategic goals have been achieved 40% the majority of the goals have been achieved

60%

diagram I-4.Achievement of the strategic goals in the administrations at central level in 2004

Compared to the year 2003 the results-oriented performance of the administrative structures is considerably improved, because there is an increase with 29% of the structures that have achieved all strategic goals. Concerning the territorial administration, 11 (39%) regional and 48 (22%) municipal administrations have achieved all their strategic goals in 2004 (for the administration at central level - 60%). Compared to the data for the year 2003 the percentage of the regional administrations that have achieved all prescribed goals has increased by 17%, and of the municipal administrations by 16%. This gives grounds for the conclusion that the performance and the functioning of the structures at territorial level has improved which has its effect on the achievement of their goals. High remains also the number of administrations that have achieved the majority of their goals - 17 (61%) regional and 162 (74%) municipal. A small portion of the goals have been achieved in 7 municipal administrations and regions (Dolni chiflik, Kuklen, Lesichovo, Lom, Nikopol, Pershtitza, Saedinenie, region Kremikovtzi and region Triaditza). 2 municipal administrations – Belogradchik and Tutrakan have not achieved their goals. Municipal administrations Kubrat and Nikolaeva do not have prescribed goals. Among the reasons for the failure to achieve a part of their goals, the administrative structures point to the shortage of financial resources, insufficient technological resources (to introduce electronic signature and to offer electronic services) as well as lack of normative basis or the delay in the approval of different normative acts.

2004 Annual Report for the Public Administration 5

all strategic goals are achieved 39%

the majority of the goals are achieved 61%

diagram I-5. Achievement of the strategic goals in the regional administrations in 2004

all strategic goals are achieved the majority of goals are achieved 3% 1%1% a small portion of the goals is achieved no predefined goals 22% the goals are not achieved

74%

diagram I-6. Achievement of the strategic goals in the municipal administrations in 2004

Priority goals for the year 2005 are developed in 74% of the structures at central level, and in 22% they are in process of development. 4% of the structures at central level have not developed their priority goals for the year 2005 and these are: the Ministry of Culture, The National Students’ Centre, the Regional health Care Centres in Dobrich, Kardjali and Russe. At territorial level the percentage of these structures is considerably lower - 57% (16 regional) and 44% (98 municipal structures) have completed the process of development of priority goals. Compared to the year 2003 there is an increase with 8% for the regional administrations, and for the municipal administrations the increase is 4%. 12 regional (43%) and 115 municipal administrations (53%) are in a process of development of priority goals. Eight municipal administrations have not developed their priority goals – Zemen, Zlatitza, Kirkovo, Krivodol, Krushari, Lesichovo, Nikopol and Slivo pole. The following could be pointed out as examples for well formulated goals for 2005: improved environmental awareness and culture of the public in the field of environmental protection, including the organizing of 4 national campaigns, training of teachers to use the teaching material “Green package” and “Floopy”, etc. of the Ministry of Environment and Waters, introduction and enforcement of the new EU legislation related to food safety of the Ministry of Agriculture and Forests, reduction of the effect of the activities in the energy sector on the environment of the Ministry of Energy and Energy Resources, undertaking of specific steps for the realization of the basic infrastructure projects within the South-East Europe of the Ministry of Foreign Affairs, optimization of the organizational and functional model of the administration based on an analysis and evaluation of the efficiency and functionality of the operative structures of the Ministry of Defence. The organizational structure has a great importance for the organizational strategy. The stability of the organizational structure requires clear formulated goals and results, as well as clarity related to the financial and human resources needed for their realization and this is a prerequisite for the effective implementation of the activities. The years 2002 and 2003 marked frequent amendment in the Rules of procedure of the administrative structures in one year. The tendency for frequent amendments of the Rules of procedure continues in 2004 too, where 56 (30%) structures at central level, all regional administrations and 119 (54%) structures at municipal level have made amendment once. More than twice have been amended the Rules of

6 2004 Annual Report for the Public Administration procedure of the Commission for Protection of the Competition, the Ministry of the Foreign Affairs, the Ministry of Economy, the Ministry of Justice, the National Statistics Institute and the municipal administrations Antonovo, Beloslav, Varna, Dolni chflik, Novi Pazar, Polski Trambesh and Pravetz. The Rules of procedure of 111 structures (60%) at central level and 71 (32%) at municipal level remained unchanged in 2004. The frequent amendments in the Rules of procedure are as a result of lack of clearly defined strategic goals, transfer or closing of functions in accordance with commitments undertaken with respect to the EU, necessity for the implementation of additional functions, necessity for additional human resources, etc. In most cases the amendments of the Rules of procedure is provoked by the necessity for increasing the number of staff (27 structures at central level and 87 at territorial level) or because of change in the structure (40 administrations at central level and 129 at territorial level). Among the most frequent causes for amendments of the Rules of procedure is also the application of the new legislation (29 administrations at central level and 30 at territorial level), reduction of the number of staff (7 a central level and 22 at territorial level), implementation of recommendations following the functional analysis carried out (12 at central level, among which the Ministry of Finance, the Ministry of Defence, Executive agency “Certification and Testing”, Directorate General "Civil air traffic administration”, etc. and 5 at territorial level – the municipal administrations Gorna Oriahovitza, Guliantzi, Dzebel, Lukovit and Maritza). Because of the necessity to create a structural unit in realization of commitments undertaken in relation to the EU, amendments in 8 structures at central level have been effected (State Agency "State and и military reserves", the Ministry of Education and Science, the Ministry of Environment and Waters, the Ministry of Transport and Communications, Executive Agency “Maritime administration”, and the Regional Inspections for environment and waters in Burgas, Haskovo and Shumen) and 7 structures at territorial level (municipal administrations Ardino, Guliantzi, Dospat, Pazardjik, Septemvri, Silistra, Sozopol). Among the reasons for the amendment of the Rules of procedure pointed out in the reports of the administrative structures one can find also: enforcement of the requirements of the directives for operational compatibility of EU in the field of railway transport (Executive Agency “Railway administration”), optimization of the functions and the competences in view of the development of the National plan for development of the Republic of Bulgaria (Executive Agency for economic analyses and forecasts), undertaking the functions related to the collection of the local taxes and fees for municipal waste from the Tax administration (municipal administration Veliki Preslav), application and grant of ISO 9001-2000 certificate for quality of the administrative services (the municipal administrations Ihtiman and Novi Pazar), optimization of the organizational connections in the administration (municipal administration Tvarditza). There are activities and functions that have been outsourced from 35 administrative structures through the establishment of public state-owned or municipal enterprises (the Ministry of Education and Science, the Ministry of Justice, the Ministry of Labour and Social Policy, the municipal administrations batak, Vratza, Kostenetz, Teteven, etc.). Functions and activities have been outsourced through the establishment of state owned enterprises in compliance with Artcle 62, paragraph 3 of the Trade Law from the Ministry of Energy and Energy Resources, the National Forest Service, the municipal administration Jakoruda, the Regional Inspection for the Environment and Waters in Pleven. Functions from 9 administrative structures have been outsourced through the granting of their administration to persons from the private sector, branch or other non-governmental organizations. The Tax administration has assigned the administration of the local taxes and fees to the municipal administrations. The State Agency “State and military reserve” has assigned the safeguarding of part of its warehouses by signing a service contract. The Directorate “National Park” - Gabrovo, the Commission for regulation of communications and the municipal administrations Bozhurishte, Silistra and Shabla have transferred activities related to regulatory

2004 Annual Report for the Public Administration 7 regimes and administrative service delivery. Seven municipal administrations have pointed out that they have assigned functions related to administration through concessions. Some of the service functions of the Ministry of Economy have been transferred to executive agencies. Existing administrations have been transformed in view of improvement of their efficiency – Tourism Agency, Bulgarian Investment Agency, Agency for Promotion of Small and Medium Enterprises. Specific measures have been undertaken in the year 2004 in different administrative structures for the realization of the Governmental policy for taking activities, functions and services out of the direct budget support. The aim is that the financial means thus saved be directed for the strengthening of the capacity required for the efficient enforcement of the common legal norms of the European law and achievement of economic efficiency and effectiveness in all spheres of governmental activities. To the end of the year 2004 the following activities, formerly executed by the administration have been taken out of the direct budget support: ■ The management and exploitation of the sport facilities, equipment and recreation and tourism places for students and pupils through the closing down of the Executive Agency “Academica”. ■ The organization of the recreation of the workers and employees within the system of the Ministry of Labour and Social Policy and the Ministry of Justice through the closing down of the Executive Agency “Recreation activities and qualification” under the Minister of Justice and Recreation base “Russalka” under the Minister of Labour and Social Policy and their transformation into trade companies. ■ Execution of private safeguarding activities (safeguarding of buildings, selection and training of the employees of the self-safeguarding units) with the amendments in the Law for the Ministry of Interior. ■ Management of the property and the organization of the work in the ports for public transport of national importance; the building, reconstruction and maintenance of the ports for public transport through the closing down of the Executive Agency “Port administration” and the transfer of these activities in the National Company “Ports”, established with a statute of a state enterprise. ■ The activities related to the selection and reproduction in cattle breeding are transferred to the specialized associations that have been authorized for this by the Law for cattle breeding. At the moment this activity is done jointly with the Executive Agency for Selection and Reproduction in Cattle Breeding. These functions of the Agency will be completely suspended at the start of 2007. ■ Functions have been taken out of the direct budget support related to the budget financing of road projects within programs, co-financed with donor funds by the Executive Agency “Roads” and have been transferred to the National Fund created within the Ministry of Finance. Activities related to the organizing of musical and other cultural events have also been outsourced and the community centres have been registered as secondary authorities disposing of budget credits under the municipal administration Valchidol. ■ The regional inspections for environment and waters have outsourced the activity related to financing from the Enterprise for management of the activities in environmental protection of plans for activities in protected territories which are exclusive state property. In the year 2004 structures that execute activities and functions which are not characteristic for the administration have been taken out of the administration. The Institute for hydro- and aerodynamics which was under the Minister of Economy had been transferred to the Bulgarian Academy of Sciences, the Architectural-park complex “the Balchik Palace” which was under the Minister of Culture has been transformed into a state cultural institute. In 90% of the administrative structures at central level, 100% of the regional and 81% of the municipal administrations there are no functions and activities taken out of the direct budget support.

8 2004 Annual Report for the Public Administration from a ministry to an agency 100% from central to territorial units from territorial to central units

8% 4% 4% 2% 7% 3% 4% 3% 4% 3%1%

central administration central administration regional regional municipal municipal 2003 2004 administration 2003 administration 2004 administration 2003 administration 2004

diagram I-7.Transfer of functions to other administrative structures

Compared to the year 2003 when the social services have been transferred to be managed by the mayors of municipalities, in the year 2004 the number of structures that have transferred functions to other administrative structures has decreased considerably.

I.2. Management of the financial and human resources for the realization of the strategic framework The human resource management policy is closely related to the strategic framework of the goals and the results and to the changing priorities and needs. The data for 2004 show that the human resource management policy is related to the strategic framework of the goals and the results and to the changing priorities and needs through internal rules in 99 structures at central level and 184 structures at territorial level. The policy is related through an organizational strategy in 64 structures at central level and 61 at territorial level. This shows that the chief executives in the administration have realized the necessity to implement a policy for the management of human resources in compliance with the predetermined goals and the expected results for the achievement of good and high quality performance and the ever growing attention that they pay to the most valuable resource – the human one. Among the other ways pointed out for achieving compliance between the strategic framework of the goals and the results and the policy for human resource management are: job performance assessment (municipal administrations Septemvri and Plovdiv, Regional health centre – Jambol), directions for filling the plans of the directorates and the individual plans of the employees (Ministry of Labour and Social Policy), the programme budgeting (Ministry of Environment and Waters), developed standard for work in the field of human resources for selection of personnel, for settlement of conflicts, for raising the qualification of the employees (Ministry of Health), the Law for the Ministry of Interior, the Rules for the application of the Law for the Ministry of Interior and the Strategy for the police carrier and for optimization of the human resources within the Ministry of Interior, developed standardized obligations and responsibilities of the personnel in the accredited structural units of the Centre for testing of agricultural, forest equipment and spare parts – Russe, provision of staff depending on the new functions entrusted by new laws and secondary normative acts every year (Regional inspection for environment and waters – Smoljan), long-term programme for the development of the national standards of Bulgaria for the period 2004 - 2010 approved by the CoM (the State Agency for Metrology and Technical Surveillance), quality management system - ISO 9001:2000 (municipal administration Veliko Tarnovo). There is no relation between the strategic framework and the human resources in 7 administrative strictures at central level and 22 structures at territorial level.

2004 Annual Report for the Public Administration 9

The chief executives of 91 structures at central level and 179 structures at territorial level state that they have at their disposal the necessary human resources, which is with 46 more than in 2003 for the territorial administration. In 93 structures at central level and 98 at territorial level the number of personnel and the capacity of human resources are insufficient.

territorial administration 2003

179 territorial administration 2004 160 149 133 117 98 88 75

sufficient HR insufficient HR sufficient FR insufficient FR

diagram I-8.Human and financial resources in the territorial administration

The survey of NZIOM concerning the human resources for efficient functioning of the administration has been made both among executives and among employees. According to the survey 50,1% think that the number of employees is less than needed, 41% think that they are as many as needed, and 4,8% think that this number is more than needed. In the administration at central level, the majority of the executives - 114 (62%) state that their administration is availed with the financial resources needed for the effective functioning of the structure. For the territorial administrations this number is 117.

46% 100% 38% 80% Administrations lacking the needed 60% FR 54% 62% 40% 24% 20% Administrations that have the needed FR 0% 2002 2003 2004

diagram I-9. Availability of the needed financial resources in the administration

Unsatisfactory level of the needed financial resources is pointed out by 70 (38%) of the structures at central level, and compared to the year 2003 this percentage is with 8% lower. For the administrations at territorial level 160 structures report for insufficient financial resources which compared to the data for 2003 shows an increase of the number of these structures with 11. The indicator “spent financial resources for the achievement of the goals of the administration” is based on monitoring and analysis of the quality of management in the sphere of financial provision of the predetermined goals of the administration, including: ■ the preliminary and specific planning of funds in the budgets of the respective administrations; ■ monitoring of the financial provision, which is a prerequisite for achievement of the goals themselves; ■ management in the conditions of insufficient planned budget resources; ■ benchmarking and making the good practices public through the annual report.

10 2004 Annual Report for the Public Administration Concerning the spent financial resources for achievement of the goals in the year 2004 the respective administrations have used different schemes for financial provision, dominated by the financial provision within the planned funds in the budget of the respective administrative structure. The data from the reports of the administrative structures point to the following:

Financial provision with budget funds

Number of % administrations Within the planned funds in the budget 364 78.96

Within the budget, with significant savings 30 6.51

In excess of the budget 67 14.53

table I.2-1.Financial provision of budget funds in the administration

From a total of 184 reports of administration at central level: ■ 165 administrations, i.e. 89,6 % state that they have provided the financial resources for the predetermined goals in the year 2004 within the planned budget; ■ 6 administrations, i.e. 3,3% - the Ministry of Energy and Energy Resources, the Executive Agency for Economic Analysis and Forecasts, the Executive Agency for Medicines, the Industrial Centre of the Republic of Bulgaria in Moscow, the Regional Education Inspectorate – Silistra and the Regional inspection for Environment and Waters – Plovdiv – state, that they are within the limits of the planned financial resources and even have considerable savings, while ■ 13 administrations, i.e. 7,1% – the Ministry of Environment and Waters, the State Agency for Metrology and Technical Surveillance, the State Agency for the Bulgarians Abroad, the Executive Agency “Certification and Testing”, the National statistics Institute, the National Institute for Cultural Monuments, the Directorate “National Park” – Gabrovo, Central Balkan, the Regional Education Inspectorates – Sofia, Targovishte and Haskovo, the Regional helath Centre – Sliven and the Regional inspection for environment and Waters – Varna report that the planned budget funds were insufficient and they have exceeded them.

7,1% 3,3% The spent FR are within the planned funds in the budget

There are considerable savings of the planned budget resources

89,6% The FR spent exceed the ones planned in the budget

diagram I-10. Financial provision with budget funds in the administration at central level

2002 2003 90% 92% 89,6% 2004

6% 7% 3,3% 4% 1% 7,1%

within the budget there are savings exceed the resources planned in the budget

diagram I-11. Comparative data for the financial provision with budget resources in the central administration for the different years

2004 Annual Report for the Public Administration 11

From the 28 regional administrations 26 i.e. 92,8% state that they are within the limits of the planned budget funds; the regional administration Vidin has achieved savings of budget funds, while the regional administration Sofia has exceeded the specifically planned budget funds in its budget while realizing its goals in the year 2004.

3,6% 3,6% The spent financial resources are within the limits of the ones planned in the budget There are significant savings of the planned budget funds

The spent financial resources have exceeded the ones 92,8% planned in the budget

diagram I-12. Financial provision with budget funds for the regional administrations

2002 2003 92,8%

2004 71% 61%

32% 14% 7% 4% 3,6% 3,6%

within the budget there are savings exceed the funds planned in the budget

diagram I-13. Comparative data for the financial provision with budget funds in the regional administrations for different years

Of 221 reporting municipal administrations (without the administrations of municipal regions) 147 municipalities, i.e. 66,6 % are within the limits of the planned budget funds; 22 municipalities, i.e. 9,9 % have achieved their goals in 2004 and at the same time have made savings of budget funds and 52 municipalities, i.e. 23,5 % have exceeded the planned budget funds.

23,5% The spent financial resources are within the limits of the ones planned in the budget There are significant savings of the planned budget funds 9,9% 66,6% The spent financial resources have exceeded the ones planned in the budget diagram I-14. Financial provision with budget funds for the municipal administrations

2002 2003

71% 66,6% 2004 61%

32% 23,5% 14% 9,9% 7% 4%

within the budget there are savings exceed the funds planned in the budget

diagram I-15. Comparative data for the financial provision with budget funds in the municipal administration for different years

12 2004 Annual Report for the Public Administration The administrations that have reported shortage of specifically planned budget funds state that they have used different schemes for financial provision in order to achieve the goals determined for the year 2004: ■ Internal compensated changes within the budget framework - 51,1 %; ■ Funds from international programmes and agreements - 13,6%; ■ Donations and aids - 11,1%; ■ Transfer of other budget credits under Article 34(1) of the Law for the State Budget - 7,2 %; ■ Interest free loans under Article 33 of the Law for the State Budget - 1, 6 %; ■ Others - 7,0 %. Only 7 administrations at central level, 4 regional administrations and 29 municipalities report that the shortage has not been financially compensated which makes 8,4 %.

internal compensated changes within the budget framework 51,1% funds from international programmes and agreements 13,6% donations and aids 11,1% transfer of other budget credits under Art. 34(1) of the Law for the 7,2% State Budget interest free loans 1,6% others 7,0%

diagram I-16. Scheme for financial provision of the predetermined goals with shortage of the specifically planned budget funds

8,4% The shortage of the specifically planned funds is financially compensated

The shortage of the specifically planned funds is not 91,6% compensated

diagram I-17. Financial provision of the predetermined goals with shortage of the specifically planned budget funds

From the analysis of the information presented in relation to the financial resources for the efficient functioning of the administrations, the following conclusions could be made: ■ The administrative structures have specifically planned in advance funds in their budgets for the financial provision of the predetermined goals in the year 2004. ■ Generally, a successful management in the sphere of the financial provision of the predetermined goals of the administration is reported for the year 2004: – In the cases of shortage of the specifically planned budget funds in 91,4% of the administrations the necessary financial resources have been provided. The schemes applied for this are the ones stipulated in the Law for the State Budget, funds from international programmes and agreements, donations and aids and other mechanisms; – From the reported other means for financial provision of the goals the following mechanisms could be pointed out as examples for good practices: analysis and solutions for savings, better control, participation of the private business for co-financing of projects, etc.

I.3. Mechanisms for interdepartamentall coordination and agreement The consultation process is an integral part of the general political and administrative cycle for formulation of decisions, their realization and the assessment of the results achieved.

2004 Annual Report for the Public Administration 13

In 2004 the “State Administration” Directorate of the CoM jointly with KPMG has implemented a project “Improvement of the consultation mechanisms”, financed by the World Bank. The project has outlined the basic tendencies for improvement of the consultation process in the public administration, developed as a result of the meetings held with representatives of the social partners and the good international practices. The conclusion was that the consultation process depends on the organizational culture, the attitudes for consultation, the behaviour and the skills of the managerial staff of the state institutions. The social partners had the impression that in the majority of cases the consultation is formal and that there is low efficiency and lack of feedback for accepted or rejected proposals. The strengthening of the relations with the citizens is a good investment for better development of policies and is a basic element of good governance. The stronger relations between the administration and the external organizations encourage the organizations to devote a part of their time and efforts to social problems. The contribution of the external organizations as a resource has to be used and valued. The information, the consultations and the active participation ensure a better basis for the administration for policy development permitting it to become a studying organization. At the same time a more effective realization is ensured, because the external organizations are better informed for the policies and have participated in their development. This participation results in a better anticipation of the political results. What do the data show in relation to the coordination and agreement mechanisms? In 121 administrative structures at central and territorial level there are no mechanisms created for the interdepartamental coordination and agreement with other interested parties. In the structures at central level, where there are mechanisms for interdepartamental coordination and agreement, the forms that predominate are the provisions in the Rules of procedure of the Council of Ministers and its administration, correspondence, written opinions, meetings and discussions with the interested parties. Among the other mechanisms pointed out are: the meetings of the National Council for Tripartite Cooperation, where all issues concerning the labour and insurance legal relations as well as the issues for the living standard are discussed with the social partners – trade unions and employers organizations. The National Council of Employment Promotion and the National Council for Labour Conditions and the working groups (Ministry of Labour and Social Policy), the technical standards committees (Bulgarian Standards Institute), agreements for exchange of data and protocols for cooperation (National statistics Institute), internal working groups with the presence of artists’ unions and other non-profit organizations (Ministry of Culture), bi-lateral and multilateral agreements (National Service for Plants Protection), contracts and memoranda for cooperation between different administrations (Patent Office), methods and procedures for joint inspections of public health institutions by the Regional health Centre – Kardjali and Regional Health Insurance Fund, instructions for interaction with the authorities of the executive branch and the judiciary, as well as with professional organizations (the “Customs” Agency, Ministry of Interior), visa systems (Ministry of Foreign Affairs), the publishing of drafts of strategies, programmes and normative acts on the Internet website aimed at offering a possibility for expressing of opinions and forwarding proposals by the interested parties (Ministry of Agriculture and Forests). The regional administrations state that they have mechanisms for coordination and agreement in the form of commissions, regional councils, and working meetings. In regional administration Sliven there has been created Regional Council for protection of the security and the public order, Regional Council for ethnic and demographic issues, Regional expert council for territory planning and Regional Epizootic Commission. In regional administration Montana there has been created an Interdepartamental Commission for consideration of proposals for changes in the transport schemes, a Regional council for energy efficiency, a Regional public council for fight against corruption and a Regional Development Council. The forms for coordination and agreement pointed out by municipal administrations are the membership in the Association of the Bulgarian Towns and Regions (municipal administration Russe), interaction and coordination with business organizations in cases of public-private partnerships (municipal administration Dobrich), establishment of temporary commissions (municipal administration Panagurishte), entrepreneurs desk (municipal administration Razgrad).

14 2004 Annual Report for the Public Administration An interdepartamental communication system has been created in municipal administration Varna jointly with the state-owned company “Information Services”, which regulates the access to the data base between the municipality of Varna, the Regional Office of Interior – Varna and the Regional investigation service. According to the sociological survey of NZIOM made among the employees in the administration, the lack of coordination between the units in the administration and interaction with the other institutions have been pointed out by 26.2% as a major deficiency in the organization of the work of the administration. 8.7% of the employees have pointed out the lack of internal coordination between the units as an obstacle to the implementation of the obligations. The form in which the consultation process can be carried out in the administration at central level is regulated in Article 21 and Article 45 of the Law for the Administration. The advisory councils are bodies for operating coordination between the public administration and the social partners. The aim is that when decisions on specific issues are made as well as when new normative acts are drafted the opinion and the proposals of these partners to be taken into account. The advisory councils are also used as fora for decision making on a specific current problem with the possibility to plan specific measures which the representatives agree to undertake to solve the problem. In the year 2004 the councils established under the CoM in connection with the coordination and implementation of interdepartamental polices (Article 21 of the Law for the Administration) are 27 and this number remains unchanged as compared to that for the year 2003. With the approval by the National Assembly (Decision of the National Assembly dated 25.03.2004 г.) of the Political framework of the Strategic review of the defence, the Interdepartamental council for management of the activities, related to the realization of the strategic review of the defence has successfully ended its activity, and in relation with the development and enforcement of the national policy for the gender equality a National council on gender equality has been established (CoM Decree № 313 dated 17.11.2004). In the year 2004 the chairmen of the councils with exhausted functions had made no attempts for closing the councils and this is a tendency that is kept from previous years. As in previous years, no actions have been undertaken in 2004 for updating the functions and the membership of three of the Councils (Council for limiting and preventing smoking in the Republic of Bulgaria, Council on state internal financial control and the Advisory council for foreign investments and financing) despite the recommendations for this made in the previous Annual Report. In 2004 the Coordination Council for the Information Society established with a CoM Decree Nr. 73/2000 has been closed down and its updated functions have been assigned to the Coordination Council for Information Society (established with CoM Decree Nr. 299 dated 8.11.2004). The development of a working programme for the activities of the councils guarantees for the clear binding of its activity to the specific interdepartamental policy which is the object for coordination. Still, the majority of the councils (15) have no developed programmes for their activities which also leads to lack of accountability for the achievement of the predetermined goals and results from the activities. The Coordination Council for Information Society, the Interdepartamental council on the issues of the military industrial complex and the mobilization readiness of the country, the National council for food safety, the National council for gender equality, the Council for economic policy, the Council for economic growth, the Interdepartamental council for export insurance and the Council for restricting and preventing smoking in the Republic of Bulgaria have no programmes developed and have not reported their activities for the year 2004 to anybody. Indicators for the efficiency in the work of the councils are also the proposals realized in 2004 related to the council activities. It is an interesting fact that despite the lack of approved programmes and activities that has not been reported the majority of the councils have succeeded to realize the proposals made by them for optimization and improvement of their activities.

2004 Annual Report for the Public Administration 15

Irrespective of the fact that the advisory councils are created for efficient current coordination between the public administration and the social partners, they do not always have as members representatives of the private sector and the non-governmental organizations. In 13 councils no participation is planned of the social partners or external experts (the Commission for the coordination of the work on the fight against corruption, the Interdepartamental council for management of the implementation of the National plan for actions related to the environment – health, the Interdepartamental council on the issues of the military industrial complex and the mobilization readiness of the country, Interdepartamental council for export insurance, National council for the narcotic substances, Council for the economic policy, Council for coordination in the fight against the torts, infringing financial interests of the European Communities, Council for Modernization of the Public administration, Council for restricting and preventing smoking in the Republic of Bulgaria, the National Council for Rehabilitation and Social Integration, Council for State Internal financial Control, Council for the National Radiofrequency Spectrum and Security Council). Only for three of the councils (the National Council for Tripartite Cooperation, the National Council for gender Equality and the National Council for Rehabilitation and Social Integration) the criteria for participation of external experts are explicitly described. The other councils, which invite external experts to participate in their activity, point that they do not have approved criteria and that the participation of external experts depends on the specific nature of the problem, the competency of the experts and the experience in the respective area or upon invitation of the chairman of the council. In the year 2004 the composition of 5 of the effectively functioning councils was not updated (the Interdepartamental council on the issues of the military industrial complex and the mobilization readiness of the country, the National council for Cooperation on Ethnic and Demographic Issues, Council for Economic Policy, Council for Economic Growth, Council for European Communication). The reasons pointed out are related to the structural and personal changes in the Council of Ministers. The proposals made by the councils in view of the improvement of the efficiency of their work are as follows: ■ To reduce the composition of the Interdepartamental council on the issues of the military industrial complex and the mobilization readiness of the country in view of ensuring efficiency in the decision-making process. ■ To make changes in the Rules of Procedure of the Council of Ministers and its administration, in ordre to regulate the procedure for the coordination of the normative acts in accordance with Article of the Labour Code in the National Council for Tripartite Cooperation in view of the better organization of the council’ activities. ■ To establish a tripartite secretariat, in accordance with article 5(1) of the Rules for the organization and the activities of the councils for tripartite cooperation because of the increased volume of work in the Secretariat of the National Council for Tripartite Cooperation and on the insistence of the social partners. ■ To create 28 regional councils for food safety with members: the director of the Regional inspectorate for protection and control of the public health, the head of the department for the state veterinary and sanitary control, representative of the Commission for Trade and Consumer Protection and two representatives of the Bulgarian association for the food and beverage industries. ■ The presence of the full members (titular members) of the Council for the narcotic substances to be ensured at the meetings of the council. ■ Rules for Internal Organization of the Council for Economic Growth to be approved by the Council of Ministers. ■ Representatives of 2 new directorates in the Ministry of Finance to be included as members in the Council for coordination in the fight against the torts, infringing financial interests of the European Communities.

16 2004 Annual Report for the Public Administration ■ New Decree of the CoM to be adopted in order to regulate the activities of the Council for European Communication, in view of the new phase of the relations between Bulgaria and the EU after the completion of the negotiations and the start of a new phase of the Communication strategy. In accordance with Article 45 of the Law for the Administration, working groups under ministers could be created to serve specific purpose – the drafting of a specific normative act or searching for a solution in relation with the enforcement of a specific normative act. The determination of the interested parties is not bound to special rules and depends on the subject treated by the group. The working groups created under the ministers are 37. Seven of them have been created in the year 2004, 21 have actually had supportive activities and one – the Expert commission for drafting the law for amendment and supplement of the law for the the physical training and sport under the Minister of Youth and Sport has completed its activities. In 2004 five ministers have been assisted by working groups, established under Article 45 of the Law for the Administration. A Coordination council for information and scientific activity has been functioning under the Minister of Interior, which has assisted the Minister to define the priorities and formulation of policies concerning the information and scientific research activities in the ministry, their financial, material and technical provision, as well as for proposals for different managerial decisions for priorities and strategies for development of the activities, annual plans for the scientific research and scientific applied institutes, the draft budget for the development of the information technologies, drafts of normative acts in the field of the information and scientific activities, etc. The Minister of Agriculture and Forests has been assisted by 3 working groups – “Corn and cereals”, “Milk” and “Poultry and poultry processing”, which has been dealing with problems in the respective sector and have interacted and coordinated their work with the professional organizations in the respective field. The National council for scientific research under the Minister of Education and Science has been created with view to participation in the drafting of a national strategy for scientific research and the report for the scientific research and the research activities in the scientific organizations and the high schools. The Minister of the Youth and Sport has been assisted by many working groups. Under the Minister have been created 8 working groups and only one of these has been established in 2004 – Experts medical commission, created to make medical examinations of elite sportsmen, to prepare statements, analysis and proposals for treatment abroad, for financial assistance from the Ministry of youth and sport. Seven working groups have been functioning in 2004 under the Minister of Defence, 5 of them being created the same year – Education council, Council for defence acquisition, Expert technical-and-economic council for armament and equipment, Experts technical-and-economic council for R&D activities and an Advisory council on R&D activities. It is only the working group “Corn and cereals” under the Minister of Agriculture and Forests, the Central licensing commission and the Expert medical commission under the Minister of Youth and Sport that have not reported their activities in the year 2004.

2004 Annual Report for the Public Administration 17

II. Administrative service delivery

The improvement of the administrative service delivery as a strategic goal of the administrative reform acquires more and more clear dimensions in the actions undertaken by the different administrations and structures to improve the quality of the services provided. The initiatives are activated and the quality indicators for the administrative service delivery are raised, even though as a whole the public does not think there is a serious leap in this direction. Considering the development processes of this policy on an European scale it could be stated that this is natural reaction because the change in attitudes on the part both of the administration and the service users is slow to be realized in the course of tens of years. The legal and organizational changes in the administrative service delivery are also accompanied by changes in the minds and perceptions, for which persistency and patience are required. The understanding for the administrative service delivery as a policy of complex character is of key importance for achieving efficient results. For most chief executives the introduction of service delivery on the “one-stop shop” principle is a basic common strategic goal, but not the only goal. High quality services cannot be provided using imperfect procedures. The main reason for the hard to understand procedures for the consumers in many cases is in the imperfect normative framework. That is why the improvement of the legislation in force has to be considered as a measure which will have an indirect effect on the service users. In line with this, the integration and the information flows, the improvement of the business environment and the e-Government are parallel policies, which in accordance with the Concept for improvement of the administrative services in the context of the “one-stop shop” principle (CoM Decision № 878/2002), should be developed in order that the administrative services to be improved. In view of the necessity to deepen the changes in the administrative service delivery, the information presented by the administrations for the past year 2004 is considered both in its traditional aspect – establishing the level of development of the different administrations in view of improvement of the administrative services, as well as with an emphasis on the application of some new policies, for example the application of the Law for restriction of the administrative regulation and of the administrative control on the economic activities, the use of mechanisms for assessment of the impact of the normative acts, the introduction of innovative approaches in the organization of the administrative service delivery, the culture of policy planning, improvement of administrative service delivery, processing claims, etc.

II.1. Level of development of the organization of administrative service delivery Through the Internet-based system for self-assessment of the administrative service delivery for the year 2004 complete information has been presented by a number of administrative structures. In 2004, 304 administrative structures have entered information in the self-assessment system for the administrative service delivery (88 administrations at central level, 25 regional administrations, 191 municipal administrations and administrations of municipal regions). Compared to 2003 the percentage of the administrative structures at central level that have presented their report through the self-assessment system had been reduced considerably. It is for a first time that for the year 2004 the municipal region administrations have presented information. In accordance with the data presented, 71% of the structures at central level provide administrative services through one point of access. The majority of the regional and municipal administrations also have made available one point of access to the services, including the provision of active consultations and direction of the consumers and there is a constant tendency for this practice to be improved. The organizational principle for the delivery of administrative services at one point of access has been adopted by 100% of the regional administrations.

18 2004 Annual Report for the Public Administration In a number of municipalities there is a practice for facilitating and optimization of the services they provide through the “Centres for information and services” built on the “one-stop shop” principle. Of similar character, but business-oriented are the established “Entrepreneurs information desks”. The reports of 52% of the municipal administrations point to the existence of organization on the “one-stop shop” principle, but in many cases this refers rather to the physical structuring of the administrative service units while the other activities – processes, human resources and technologies are at a different level.

Administrative structures providing for one point of access to administrative service

Administrative structures that do not provide for one point of access to administrative services

Central administration 2004 71% 29%

Central administration 2003 73% 27%

Regional administrations 2004 100% 0% 22% Regional administrations 2003 78%

Municipal administrations 2004 52% 48% 48% Municipal administrations 2003 52%

0% 20% 40% 60% 80% 100%

diagram II-1. Comparative data for the administrative structures providing for one point of access in administrative service delivery

In the year 2004 the greatest number of administrations is at the “developing” stage - 37%. 34% of the administrative structures are at “operational” stage, 27% are at the lowest development stage, 2% at the highest “excellent”.

basic developing 2% operational 27% 34% excellent

37%

diagram II-2. Stages of development of the administrative service delivery system in the administration in the year 2004

In the year 2004, 88 administrations at central level have entered information into the self- assessment system for the administrative service delivery. Greatest is the number of the administrations at the “operational” stage – 40 (General Tax Directorate, State Agency for Child Protection, Ministry of Energy and Energy resources, Ministry of Youth and Sport, Ministry of Foreign Affairs, Ministry of Interior, Ministry of Education and Science, Ministry of Finance, Ministry of Environment and Waters, Ministry of Economy, the Employment Agency, etc.) – about 45% of the administrations that have presented reports. Quite high is also of the percentage of the administrations at the “developing” stage – about 32% (Ministry of Transport and Communications, Ministry of Labour and Social Policy, Ministry of Health, Ministry of Agriculture and Forests, Ministry of Culture, Ministry of Defence, Directorate for National Construction Control, State Agency “Civil Protection”, Agency for Social Support, etc.). 18 administrations (about 20%) are at the lowest development stage - “basic” – the Institute for Tobacco and Tobacco products, the Cadastre Agency, the Executive Agency “Railway administration”, etc. Two administrations have self- assessed themselves at the “excellent” stage – the National Agency for Vocational Education and

2004 Annual Report for the Public Administration 19

Training and Agency “Development of the communications and of the information and communication technologies”. 25 regional administrations have presented information using the system for self- assessment in 2004. The greatest number of them – 17 have assessed themselves at the “operational” stage (Sofia, Varna, Plovdiv, Pleven, Russe, etc.), 7 administrations have pointed to be at the “developing” stage (Vidin, Dobrich, Jambol, etc.) and 1 regional administration (Smoljan) – at the “excellent stage. No regional administration has assessed its administrative service delivery at the “basic” stage. In 2004, 173 municipal administrations have entered information in the self-assessment system for the administrative service delivery. 68 of them have assessed themselves at the “developing” stage - about 39% of all that have presented reports (Kjustendil, Targovishte, Smolajn, Jambol, etc.). Quite high is also the percentage of the municipalities at the ‘operational” stage - 27% (Vidin, Gorna Orjkahovitza, Shumen, Burgas, Russe, Lovech, etc.). 56 administrations (about 32%) have pointed out to be at the lowest development stage “basic” (Sandanski, Velingrad, Geogi Damjanovo, Kotel, Aitos, Pomorie, Hissarja, etc.), 3 municipal administrations have assessed themselves at the highest development stage “excellent”(Sliven, Valchedram and Dobrich). 18 administrations of municipal regions have entered information using the system in 2004. Out of them 8 declare to be at the “basic” stage, 9 – at the “developing” stage and one (region Mladost, Sofia municipality) – at the “excellent” stage. The old buildings are pointed out as the basic problem in creating the physical space as well as the fact that some administrations have been located temporarily in a given building or have rented a building which limits their freedom to make the necessary reconstructions. The quality of the administrative service delivery depends to a large extent on the information, which is made available for the services and the means for access to the services. The information for the administrative service delivery, intended for the customers in a clear and understandable language is maintained and updated in all administrations. 87% of the administrations at central level, 87% of the regional administrations and 47% of the municipal administrations that have reported using the self-assessment system declare that they have an Internet web-site. Information using brochures and leaflets is provided by 63 % of the administrations at central level, 80% of the regional administrations and 70% of the municipal administrations. The traditional information means – the information board, is used in almost all regional administrations. The information and communication provision is one of the important prerequisites for the delivery of services of high quality and speed. In the survey of NZIOM, the employees of the ministries, the regional administrations and the agencies report that the material and technological equipment in their working environment has been improved. The number of employees who do not use Internet has been reduced from 16% during the spring of 2004 to 9% in March 2005. The improvement of the information-communication provision in the administrations has an effect on their capacity to provide electronic services. 98% of the central, 94% of the municipal and 100% of the regional administrations report that they provide for different channels for access to services and information (telephone, mail, e-mail, Internet, portal, etc.). The traditional channels for access are the personal contact and the mail. 88% of the structures at central level, 77% of the regional and 40% of the municipal administrations state that they provide information through Internet for the services they deliver. 79%, 75% 55% of them respectively offer possibilities for downloading of forms from Internet. Still, a small number of the Internet web-sites permit that questions be asked electronically. A part of the process of organization of the administrative service delivery is the fixing of the working time of the administrative service delivery units. In this respect, 71% of the central, 50 % of the regional and 52% of the municipal administrations state that they use a flexible working time. This means that they are making efforts to provide a continuous working process and to satisfy the needs of the customers of services taking into account the hours most convenient for them for being admitted.

20 2004 Annual Report for the Public Administration An indicator for the commitment of the administrations on the problems of the administrative service delivery is the presence of strategies and plans for the satisfaction of the customers of services. About 90% of the administrations state that they have developed the above mentioned strategic documents. As a positive fact it deserves mentioning that 85% of the central administrations, 92% of the regional and 78% of the municipal administrations have announced the availability of client charters with internal organizational standards and goals of service delivery. Taking into account the total percentage of administrations that have client charters (81) and the character of the charters as documents, we can conclude that they are a part of the measures which predetermine the policy of development of the administrative service delivery in the different structures. In line with this 21% of the central, 28% of the regional and 14% of the municipal administrations are already applying a system for the management of the quality of the administrative services delivered. An important tool for analysis of the practices in administrative service delivery is the analysis of the claims and complaints. It is also an element of the system for feedback from the clients. According to data of NZIOM a large number of the interviewed citizens - 40% express their negative opinion for their contact with the employees in a direct form and without formal procedure. Only 5% use written form, although the majority of administrations have developed internal procedures for the processing of claims for maladministration. Only 5% of the structures have stated that they do not have such internal procedures (for example the Agency for state internal financial control, the Institute for Public Administration and European Integration, The Commission for Communications Regulation, the regional administrations Lovech and Silistra, municipal administration Razgrad) and 6% present answers not compatible with the question – they refer only to laws, to the Code of Conduct of the Employees in the Public Administration, of the “one-stop shop principle”, to job descriptions, or to the fact that they do not have any claims filed and that is why there is no necessity to develop procedures (the municipal administration Silistra and Regional Health Centre - Pazardjik – there are no claims for maladministration), etc.

2004 Annual Report for the Public Administration 21

What acts regulate the procedure for processing claims for maladministration in your administration?

number of % administrations With Rules of procedure 125 22.48

With Internal rules for organization of the administrative service 291 53.34 delivery

With an order of the chief executive 30 5.4

Other 110 19.78

table II.1-1. Regulation of the procedure for processing claims for maladministration

The most widespread document for formulating the procedures for processing the claims for maladministration is the Internal rules for organization of the administrative service delivery. About 23% of the administrations state that this activity has been regulated in the Rules of procedure of the respective structure. In view of the fact that in most of the Rules of procedure of the structures at central level and the regional administrations such regulation is lacking, it is obvious that this approach is mostly used by the municipal administrations. In a small number of administrations there is an explicit order of the chief executive for the regulation of this activity. The client’s charters are enlisted among the other tools for regulation of the above mentioned procedure although the charter is a tool for publication of procedures and standards, and not a document for regulation of the claiming procedure. Also enlisted are instructions/rules/regulations for the document flow/records keeping activities. Nine administrations have introduced quality management systems – the Bulgarian-German Centres for Vocational Training – Pazardjik, Pleven and Stara Zagora, the Centre for Testing of Agricultural, Forest Equipment and Spare Parts – Plovdiv, Executive Agency “Tests and verification of armament, equipment and possessions”, the regional administrations Razgrad and Stara Zagora, the municipal administrations Veliko Tarnovo and Ihtiman, which requires individually developed procedures for every activity, including the processing of claims for maladministration. In regional administration Stara Zagora there is a “Procedure for registration, analysis and undertaking of actions related to claims and signals for maladministration”, approved by the Governor. The tax administration is working in the direction of improvement of the procedure developed for the filing of opinions, proposals and claims by the tax payers concerning the tax legislation as well as against actions of tax employees. As a result, an increased level of service delivery for the tax payers is observed and the number of filed claims has been reduced. Every tax subject can forward a signal related to the work of the tax employees on a telephone for fight against corruption within the Ministry of Finance, as well as on a special telephone number in the General Tax Directorate. Despite the good practices, the low percentage of citizens, who use the above mentioned tools for filing claims speaks about lack of knowledge for the procedure a claim is to be filed. The diversity of the ways of regulation of process of filing and processing of claims for maladministration is confusing to the citizens and is a prerequisite for their lack of interest. As additional means for feedback from the clients we can point to the personal contact, the gathering and analysis of opinions and proposals through Internet, boxes for proposals and claims, inquiries, etc. According to the survey of NZIOM, a great number of the employees (77%) state that they know the requirements of the citizens and the business. The direct contacts of the employees with the citizens are pointed out as the feedback most often met both in the year 2003 and in 2004. There is a growth in two of the feedback channels – inquiries and on-line contact, but nevertheless the methods remain not very popular. There is no change as compared to the year 2003 in the

22 2004 Annual Report for the Public Administration belief of the Bulgarian citizens that an opinion expressed in respect of the performance of the administration will have minimum effect for improvement of the quality of the administrative services. The feedback is the way for recording not only the negative reactions of the customers, but also a means for collecting proposals. 14% of the citizens, in their direct contact with the administration recommend that the quality of the administrative service should be improved. The most unpopular methods used by the citizens for proposals for improvement of the quality of administrative services are the proposals box and on-line contact. However, the collection of proposals could be qualified as aimless if it is not followed by an analysis, undertaking of measures and communicating the measures undertaken. Until this moment there is no practice created for the employees to analyze the proposals forwarded by the citizens. 39% of the citizens who have given proposals for improvement of the quality of the administrative service delivery do not have a response and action on the part of the administration. There is a reduction to 31% in 2004 as compared with the 33% for the year 2003 in the cases when the citizens have received an answer but without any measures being undertaken on the part of the administration. The percentage of the cases of response on the part of the administration and processing of the proposals made by the citizens has increased from 20% for 2003 into 22% in the spring of 2004, and at the moment this percentage has fallen to 19%. In order that high quality of the services to be reached, the administrative services have to work in coordination. A sign for the latter is the existence of a practice for interdepartamental coordination of correspondence. The practice for interdepartamental official coordination emerges either based on special provisions in the normative acts or on agreements between the organizations. As a good practice in this area we can point to the performance of the Executive Agency on Hydromelioration, Ministry of Health and Ministry of the Environment and Waters, Regional administration Gabrovo and some municipalities on the territory of Gabrovo region. Through the regular representative survey of NZIOM for 2004 carried out in respect of the state-of-the-art and the organization of the administrative service delivery the following additional most important conclusions have been made. The executives and the employees give equally excellent ratings for the organization of the work of their units. Unlike previous years, the employees of different length of service also give similar ratings for the organization of work in the specific units. The percentage of employees who find some deficiencies in the organization of the activity of the unit had been reduced with 13%. From 27% to 21% for one year has been reduced the percentage of the critics on the part of the employees towards the weak coordination between the administrative units. For the delivery of more efficient services to the citizens and the business, 25% of the employees think that the internal and external coordination between the administrations has to be improved. From the data pointed out, we can conclude that the organization of the administrative service delivery becomes better and better, but further efforts are still needed for the optimization of the process. Obviously, this could be achieved also through the improvement of the internal information flows in the administration, because 69% of the employees state, that the establishment of functional mechanisms for dissemination of information in horizontal and vertical directions is an effective means for improvement of their performance. The percentage of the “reluctance to work” as a probable cause for slow and low quality services, according to the customers has risen from 43% for 2003 into 48% for 2004. The citizens define that the employees in the administrations at central and municipal levels possess high professional qualification and culture. From 36% for 2003 to 33% for 2004 falls the percentage of the citizens who define the culture of the employees as not satisfying the requirements of the administrative service delivery. Despite the fact that the citizens are still having a critical attitude, the image of the employees of the administration in view of professionalism and ethics is becoming better and better. The lack of adequate motivation for the employees for the delivery of high quality administrative services can be outlined as a problem of the society.

2004 Annual Report for the Public Administration 23

II.2. Administrative regulation The basic normative act for the realization of the policy for facilitating the business climate is the Law for restriction of the administrative regulation and of the administrative control on the economic activities that has entered into force at the start of 2004. The results from the application of the law during the previous year are indicative for the will and the commitment of the executive authorities to undertake measures for reducing the administrative control on the business activities and for restriction of the administrative regulation related to the business. The aim of the law is to facilitate and stimulate the performance of business activities by restricting to such limits the administrative regulation and the administrative control carried out by the central and the local executive authorities that are justifiable from the point of view of the society. Under administrative regulation the law understands the establishment of normative requirements, the satisfaction of which is provided through the execution of administrative control. I.e. the aim of the law is to restrict the requirements to the business at the beginning of starting some activity and subsequently the control on this activity to be restricted. Naturally, there are activities – national security, public order, personal and property rights of the citizens and activities related to the environment, which require the exercise of full administrative control on the part of the central and local executive authorities. From the Law for restriction of the administrative regulation and of the administrative control on the economic activities one can derive the following requirements to the normative acts, regulating the regulatory regimes: ■ The authorities could not impose burdens, which do not correspond to the aims of the law and which restrict competition; ■ All requirements for starting and operating a business are to be regulated in a law or in a secondary piece of legislation, stipulated by a law; ■ The authorities are obliged to provide access to all documents and forms, to provide information for the administrative services, related to regulatory regimes and to assist for the filling of the forms; ■ The authorities are obliged to make public the methods and procedures for the fixing of the fees; ■ Organization of the activities on administrative service delivery in one point of access; ■ Provision of suitable working time of the administrative service delivery units; ■ No documents should be required which are present in the public registers and are certified by other authorities. Only a written statement is required in these cases; ■ Publicizing of the policy followed and the practice created for the enforcement of the normative acts in relation to the regulatory regimes. The policy includes the means an authority has chosen and applies when executing its operational independency for achieving the aims of the law; ■ The administrative authority can ask only once for elimination of irregularities or provision of additional information in relation to the granting of a license or permission, as well as for making registration. The term for elimination cannot be longer than the term for decision, fixed by a law or a secondary piece of legislation. ■ Specific manner of regulation of the licensing and the permission regimes. One of the important requirements of the law to the administrative authorities is to publicize the policy followed and the practice created for the enforcement of the normative acts in relation to the regulatory regime The data presented by 462 administrations on the matter show the following results related to the publicized policy:

24 2004 Annual Report for the Public Administration number of % administrations We do not implement activities related to administrative 125 27 regulation and administrative control in the context of the Law for restriction of the administrative regulation and of the administrative control on the economic activities

Yes 317 69

No 20 4

table II.2-1.The policy and the established practice for the application of the of the normative acts related to the regulatory regimes made public

Quite serious is the percentage of the structures declaring that they have publicized the policy followed - 69 %. This is done through the mass media (radio, TV, press) - about 33%; information boards or through communications - about 28%; Internet - about 22%; the Register of the administrative structures and of the acts of the executive – about 3%; client’s charters - about 2%. More than one channel for publicizing is pointed out by 162 administrative structures (about 36%), of which 36 at central level, 7 at regional and 112 at municipal level. Quite small is the percentage of structures (4%) which do not publicize the policy followed and the practices established in the enforcement of the normative acts related to the regulatory regimes. The basic reasons for this are coming amendments of the normative framework (Privatization Agency, the National Veterinary Medical Service, the municipal administrations Kostenetz and Zlatograd), lack of practices and organization in this field. More worrying is the percentage of the structures that point out that they do not execute activities related to administrative regulation and administrative control and consequently they do not publicize the policy followed. These make 27% of all structures that have presented their reports. Out of them 21 are municipal administrations, 15 are regional administrations and 10 are central administrations or deconcentrated units of the central administration (the Directorate for National Construction Control, the Tax Administration, the National Agency for Evaluation and accreditation, the Agency for Social Assistance, the Executive Agency for sort testing and seed control, the Directorates National Park Bankso and Gabrovo – 2, Regional Inspections for environment and waters – Shumen and Burgas – 2), for which the fact that they administrate regimes or exercise administrative control is an indisputable fact. Most of the structures pointed out make the entries for the regulatory regimes in the Register for the administrative structures and the acts of the executive authorities themselves. In line with this, the territorial administrations also report for the administration of different number of regimes: ■ The regional administrations - between 1 and 4, and 17 regional administrations point that they do not administer regulatory regimes (regional administrations Blagoevgrad, Burgas, Veliko Tarnovo, Vidin, Vratza, Gabrovo, Kjustendil, Lovech, Montana, Razgrad, Russe, Silistra, Sofia region, Stara Zagora, Targovishte, Haslovo and Shumen). ■ The municipal administrations – from 1 to 79. 137 municipal administrations administer from 1 to 10 regulatory regimes; 47 municipal administrations administer up to 20 regulatory regimes and 16 municipal administrations point that they administer more than 20 regulatory regimes (municipal administration Sliven - 79, municipal administration Chelopech - 58, municipal administration Belogradchik - 53, municipal administration Smoljan - 38, municipal administration Shumen - 37, municipal administration Boboshevo - 34, municipal administration Kavarna– 33). It is quite logical to make the conclusion that a large percentage of the structures which report not to exercise administrative control and administrative regulation, but in fact do it, do not understand the Law for restriction of the administrative regulation and of the administrative control on the economic activities and consequently do not present information to the public concerning the

2004 Annual Report for the Public Administration 25 policy for the administrative regulation and the administrative control. The real percentage of these structures is about 13%. The final result is that 69% make the policy public, 15% do not have an activity related to administrative regulation and control and 17% do not publicize the policy because they do not understand the law, because of lack of organization or because of expected changes in the normative framework. In order to satisfy the above mentioned requirements of the Law for restriction of the administrative regulation and of the administrative control on the economic activities, the respective executive authority within the scope of its powers, should make or initiate amendments in the secondary pieces of legislation for the respective regimes. The amendments could refer both to the regimes and the organization of work related to the services for them. In this context, the amendments could refer both to normative acts and internal-organizational acts. In the year 2004, 103 structures (22%) of the 460 structures that have presented reports point that they have made or have initiated amendments in the secondary pieces of legislation in view of the application of the Law for restriction of the administrative regulation and of the administrative control on the economic activities. These amendments are made in regulations and Rules of procedure. 37 of the administrations have reported that they have made amendments in more than one secondary normative act. The percentage is not low because a part of the structures do not have the power to make such amendments or they cannot directly initiate such changes. Other part of the structures does not have activities related to this law. Quite hopeful is the percentage of the municipal administrations that have made such amendments – 52% of all the 219 municipalities that have presented reports. It is approximately equal to the percentage of municipal structures that have introduced the “one-stop shop” principle of service delivery. It is logical to conclude that structures where the administrative service delivery is in the focus of the actions undertaken by the managerial team of the administration have better application of the Law for restriction of the administrative regulation and of the administrative control on the economic activities, and the facilitation of the regulation regimes is a part of the overall policy for improving service dekivery. An important part of the regulatory regimes are the licensing regimes. 354 administrative structures (about 77% of the 460 structures that have presented reports) have indicated that they do not administrate any licensing regimes. 96 administrations (21%) indicate that they have brought in line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities their licensing regimes in 2004 and 2% have given answers that do not comply to the question. 17 out of them have reported that they have brought in line with the law more than one regime – Ministry of Economy, 4 other structures at central level – Agency for Nuclear regulation, the State Commission for Energy Regulation, the Commission for Regulation of the Communications and the Executive agency “Railway administration” and 11 municipal administrations. Three administrations – the Ministry of Finance, the Commission for Financial Surveillance, and the State Agency for Metrology and Technical Surveillance claim that they have brought their licensing regimes in line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities yet in the year 2003. The National Veterinary Medical Service have indicated that they administer licensing regimes but they are not still brought into line with the law. The administration at central level have administered 59 licensing regimes in 2004 which have been brought in line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities. 8 our of them are in ministries (the Ministry of Economy, Ministry of Health, Ministry of Youth and Sport, the Ministry of Interior, and the Ministry of the Regional Development and Public Works), and the greatest number (4 regimes) has been administered by the Ministry of Economy (later on one of them becomes a registration regime) 51 of the administrative structures established with a law or by executive agencies or state commissions – the Agency for Nuclear Regulation, the Directorate General “Civil Air Transport Administration” (2), the State Commission for Energy Regulation (9), the State Agency for Child Protection, the Commission for Regulation of the Communications, the National Agency for Assessment and Accreditation, the National Agency for Vocational Training and Education, and the National Service

26 2004 Annual Report for the Public Administration for the Corn and the Fodder, the executive agencies “Railway administration” (2), “Automobile administration” (1) and “Maritime administration” (1). The highest number of licensing regimes are administered by the Commission for Regulation of the Communications (26) and by the State Commission for Energy Regulation (9). This distribution of the administered regimes mainly in administrations having regulatory functions – state commissions and structures, established by a law is quite natural and shows the positive tendency for licenses to be granted only for activities provided for in the Law for restriction of the administrative regulation and of the administrative control on the economic activities.

structures created with a law and performing regulatory functions state commissions 7% ministries 14% executive agencies

15% 64%

diagram II-3. License regimes brought by the central administrations into line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities in the year 2004.

It is interesting to see how the municipalities perceive their role in the administering of the licensing regimes. The fact that 48 municipalities and one municipality region (South Region – Plovdiv municipality) think that they administer granting of licenses for trade with wine and alcoholic drinks is quite indicative. Among these are such municipalities as: Burgas, Vratza, Dimitrovgrad, Dobrich, Kotel, Pavlikeni, Sandanski, Sevlievo, Jambol, etc. In line with this 22 municipal administrations have pointed out that they administer the granting of licenses for the trade with tobacco and tobacco products (for example Belogradchik, Varna, Knezha, Kotel, Chirpan and Jakoruda). Seven municipal administrations think that they administer the granting of licenses for the categorization of tourist and commercial objects (for example Belogradchik, Kotel, Smoljan and Trojan). The municipal administration Borovan claims that it is granting licenses for services and trade, while the municipal administration Targovishte – for trading with non-ferrous metals. Sofia municipality has pointed out the administration of the granting of licenses for the evaluation of real estates in cases of appropriation. The facts mentioned above for the municipal administrations are disturbing. The Law for restriction of the administrative regulation and of the administrative control on the economic activities explicitly stipulates that licenses are granted only by central authorities of the executive. At the same time the special laws as well, which until the Law for restriction of the administrative regulation and of the administrative control on the economic activities entered into force have provided for the grant of licenses by the municipal authorities, do not contain such provisions any more. The presence of license regimes in the municipal administrations could be explained with lack of understanding of the Law for restriction of the administrative regulation and of the administrative control on the economic activities and of the use of the concept “license” by tradition and for activities which have permission or registration character. Another type of regulatory regimes are the permission regimes. At central level 58 administrative structures out of 185 (about 31%) have reported that they have brought the permission regimes administered by them in line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities in 2004, among which are 15 structures created with a law, 12 regional health centres, 23 regional inspections for environment and waters and 6 ministries (Ministry of Interior, Ministry of Health, Ministry of Economy, Ministry of the Education and Science, Ministry of Environment and Waters

2004 Annual Report for the Public Administration 27 and Ministry of Regional Development and Public Works). The largest number of permission regimes at central level are administered by the Agency for Nuclear Regulation (19) and the Ministry of Regional Development and Public Works (14). Interesting is the fact that the structures with identical functions give different answers related to the permission regimes. The basin directorates Pleven, Danube region have pointed out that they administer permission regimes while the basin directorate Varna, Black sea region states that it dies not administer such. Similarly, the Directorate National Parks - Blagoevgrad, Rila and Gaborovo, Central Balkan enlist the permission regimes they have brought in line with the law, while this in Bansko, Pirin thinks that it dies not administer permission regimes. Similar is the system of answers given by the Regional Inspections for Environment and Waters - 23 of them point to different regimes brought into line with the Law for restriction of the administrative regulationthe Regional Inspections for Environment and Waters - Burgas, Sofia, Stara Zagora, and Haskovo) think that they do not perform activities on administration of such regimes and it was only the Inspection in Plovdiv that has pointed out that it has no powers to bring in line the regimes it administers in line with the law. :ost problematic is the situation with the Regional health centres - 16 of them think that they do not administer permission regimes, while the remaining 12 point a number of regimes that have been brought in line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities, mainly permissions for the sale of medicines by doctors, фелдшери or nurses in places населени места where there is no pharmacie. A misbalance of the opinions are also noticed for the regional administrations - 5 regional administrations (Varna, Veliko Tarnovo, Pazardjik, Russe and Smoljan indicate that they have brought a number of permission regimes related to the Law for the structure of the territories and the Public Procurement Law into line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities while the remaining 22 regional administrations state that they do not perform activities for administration of the permission regimes. 35 of the municipal administrations (about 16%, among which Vidin, Gotze Delchev, Dobrich, Kazanlak, Panagjurishte, Radomir, Svishtov) of the 219 municipalities that have presented information think that they do not administer permission regimes. 183 municipal administrations (about 83%) have pointed out that in 2004 they have brought in line to the Law for restriction of the administrative regulation and of the administrative control on the economic activities a number of permission regimesq and 132 of them have pointed out that they have brought into line with the law more than one regime. The most frequently mentioned regimes are related to the Law for the Structure of the Territories, The Law for the Tobacco and the Tobacco Products, the Law for the Automobile превози, the Public Procurement Law, the Law for the Protection of the Agricultural Lands, The Consumers Protection Law and for the trade rules. One percent of the municipalities have presented answers which do not correspond to the question. 10 administrations of regions of municipalities think that they do not administer permission regimes while the other 18 regions that have presented information for the report, point out that in the year 2004 they have brought in line with the law a number of permission regimes administered by them - most often regimes related to the Law for the Structure of the Territory and for амбулантна търговия. In view of the limited powers of the municipal regions in relation to amendments of the procedures it is most probably that the issue related to the approval of internal rules which are optimizing the process of service delivery related to the regulatory regimes. As a whole, by the concept of “permission” regime the administrations do not mean the same as it is meant by the Law for restriction of the administrative regulation and of the administrative control on the economic activities, they rather refer it to a permission for a long-term performed activity. The registration regimes are very often confused with the licensing regimes. The basic difference between the two regimes is the type of the evaluation made by the administrative body. While for the licensing regimes the evaluation is based on the appropriateness, in the registration regimes the evaluation is related to the conformity with thee law. This difference is difficult to be established by the administrative structures, which is obvious from the data that follow. This problem also is a result from the special laws where it is equally not well regulated.

28 2004 Annual Report for the Public Administration In the year 2004, the administered registration regimes have been brought into line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities in 63 structures at central level. Out of them 4 are ministries (the Ministry of economy, the Ministry of Culture, the Ministry of Environment and waters, the Ministry of Regional Development and Public Works), 9 are executive agencies - the Agency for Energy Efficiency, the Cadastre Agency, the Tourism Agency, the executive agencies “Railway administration” and “National Film Centre”, the Executive Agency for the Vine and the Wine, the Executive Agency for the fishery and aquacultures, the Executive Agency for Hydromeliaration, the Executive Agency for Selection and Reproduction in Cattle Breeding, one is with a statute of state agency - the National Statistics Institute and 49 are the structures established with a law (the Agency for Financial Intelligence, the Commission for the Regulation of the Communications, the National Service for Plants Protection, the National Service for the Crop and the Fodder, the Central Register for the особените залози, 21 Regional Health Centres and 22 Regional Centres for Environment and Waters). The greatest number of registration regimes havs been brought in line with the law by the Ministry of Culture and the National Film Centre - 5 regimes each and by the Commission for Regulation of the Communications and the National Service for the Crop and the Fodder - 3 regimes each.

structures aestablished with a law executive agencies 6% 2% 14% ministries state agencies

78%

diagram II-4. Administrations at central level that have brought the registration regimes in line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities in the year 2004

Furthermore, it is noted again, that structures with identical functions are giving different answers in relation to the registration regimes. For example, 5 Regional Health Centres think that they do not administer registration regimes while the remaining 23 point to the registration of the лечебните заведения за извънболнична помощ and/or registration of doctors, operating with expensive medicines. The majority of the Regional Inspections for Environment and Waters consider that they administer registration regimes - mostly in relation with some specific laws, which have been brought in line with the law in the year 2004. 4 Regional inspections for environment and waters (Burgas, Sofia, Stara Zagora and Haskovo) state that they do not administer registration regimes. It is only the Inspection in Plovdiv that points to administer registration regimes but has no powers to bring them in line with the law. From the regional administrations it is only region Smoljan that reports to perform activity related to administration of registration regimes and point out that in the year 2004 it has brought 6 registration regimes into line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities. Obviously, there is some confusion because among the registration regimes pointed out is even the registration of incoming information and of the individual administration acts. From the municipal administrations 44 (about 20% of the ones that have presented information) consider that they do not perform activities for administration of registration regimes (for example Vidin, Kazanlak, Kardjali, Momchilgrad, Razlog, Svishtov, etc.). 167 municipal administrations (about 76%) have pointed out that they have brought in line with the law a number of registration regimes - the most frequently pointed out are the registration of bee-keepers beehives, address registrations, registrations for civil status, registration of commercial objects, registration of agricultural and forest equipment, etc. 12 administrations of municipal regions think that they do not administer registration regimes, while the remaining 16 that have presented information for the report, point to a number of

2004 Annual Report for the Public Administration 29 registration regimes that have been brought into line with the law in 2004, in most cases tax registration of vehicles, of agricultural and forest equipment, of domestic animals, of beehives, etc. From the examples pointed out for the municipal administrations and the municipal region administrations it is obvious that under registration regimes according to the Law for restriction of the administrative regulation and of the administrative control on the economic activities the administrations understand also services which have the designation “registration” but they do not relate to any economic activity. The coordination regimes are not explicitly regulated in the Law for restriction of the administrative regulation and of the administrative control on the economic activities. In the special laws they are referred to as coordination, approvals, authentications, etc. In order that they be brought in line with the above mentioned law they should be made public and should give information explaining the process of their realization. In most cases they are part of “complex“ regulatory regimes, which are related to the participation of several administrative bodies before the final grant of the final document irrespective whether a license, certificate or permission. 152 (about 82%) of the administrations that have presented reports at central level have stated that they do not administer coordination regimes. The structures established with a law and having a defined limited scope of activities (regional health centres, regional inspections for environment and waters) again give different answers for whether they administer coordination regimes or not. From the regional administrations 22 think that they do not administer coordination regimes while the remaining 6 (Varna, Kardjali, Russe, Silistra and Smoljan) point to such regimes brought in line with the law such as coordination of transport schedules, investment projects for objects of technical infrastructure with a scope and importance for more than one municipality, coordination of layout scheme for movable objects for commercial and other service activities on state property, etc. Half of the municipal administrations, among which Blagoevgrad, Burgas, Varna, Veliko Tarnovo, Vidin, Gabrovo, Gorna Orjahovitza, Kazanlak, Kardjali, Panagjurishte, Razgrad, Russe, state they they do not administrate coordination regimes while the remaining ones point to the a number of coordination regimes brought into line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities - mostly in relation with the Law for the Structure of the Territories (coordination of investment projects, coordination of construction documents, etc.), transport schedules, trading objects, etc. Similar is the situation also for the municipal regions - only about 25% of the regions state that they have coordination regimes brought into line with the law. From the overall analysis of the answers of the administrations the following general conclusions can be made: ■ The administrations in general do not understand the Law for restriction of the administrative regulation and of the administrative control on the economic activities. The arguments for this are: – the presence of administrations which have systematically given answers that do not correspond to the questions (the executive agencies “General Labour Inspection” and the “automobile administration”, the municipal administrations Aitos, Dimitrovgrad, Ivalovgrad, Ljaskovetz, Montana, Sandanski, Jambol, etc.); – confusion concerning the character of the administered regimes; – the statements for lack of administered regimes by administrations for which there is explicit normative regulation (almost all regional and 12% of the municipal administrations); ■ The administration at central level with the exception of the structures established with a law and having limited territorial scope of activity (Regional inspections for environment and waters, Regional health centres, basin directorates), apply the law much better than the territorial administration;

30 2004 Annual Report for the Public Administration ■ Different levels of understanding of the law in structures with identical or similar functions the structures established with a law and having limited territorial scope of activity (Regional inspections for environment and waters, Regional health centres, basin directorates) and the municipal administrations); ■ Low level of understanding of the Law for restriction of the administrative regulation and of the administrative control on the economic activities among the municipal administrations. Again, the reason for this conclusion is the following: – the confusion in respect of the type of the regulatory regimes. Most frequently, there is confusion with the regimes concerning the tobacco and the tobacco products (regulatory), trade with wine and alcoholic drinks (abrogated), categorization of the tourist objects (registration), which are defined by the different municipalities as licensing, permission, coordination and registration. Frequently confused regimes are also those for extending the working time of the trade and tourist objects, the transport lines and the trade activities. – the statements of some administrative structures that they do not administrate regulatory regimes. – the large relative share of the administrations that have given answers not corresponding to the questions. ■ Availability of many regimes which do not have the names of the regulatory regimes according to the Law for restriction of the administrative regulation and of the administrative control on the economic activities - coordination, categorizations, authentications, approvals, etc., which renders the process for bringing them in line with the Law for restriction of the administrative regulation and of the administrative control on the economic activities quite difficult. It is natural that in the presence of a similar situation the cause for its appearance to be sought. The Law for restriction of the administrative regulation and of the administrative control on the economic activities is in force from the start of 2004. Before that the law itself has specified a period of 6 months in which the administrative authorities within the framework of their competences had to introduce changes in the secondary legislation regulating the regulatory regimes. It is obvious that even after this period, one year later, the process of enforcement of the Law for restriction of the administrative regulation and of the administrative control on the economic activities is not active. The different interpretations of the law, the different methods of action, lead to the conclusion that there is no methodological guidance both within one ministry and for the overall application of the law. Similar is the case of another law - the Law for Access to Public Information. In both cases there is lack of regulation in respect of which executive authority is responsible for the enforcement of the law and there is also legal delegation for the establishment of organization for the application of the laws, which is an obstacle for the establishment of unified practice. When such regulations are lacking it is difficult to create appropriate administrative capacity to develop the policy and to impose unified predictable practices in the actions of the administration.

II.3. Fees and prices of the administrative services The fees and the prices are monitored and analyzed with view to: ƒ their importance as revenue item for the respective budgets; ■ greater transparency and publicity about the legal grounds, the types and the size of the fees and prices established; ■ constant monitoring of the way of making public of the fees and the prices in the administrative structures, empowered to collect them; ■ transfer of the activity for the collection of the fees and prices to other organizations, empowered to deliver the specified services (when this is acceptable) with effective control of the quality and the quantity. In cases specified by the law the actions and/or the granting of the respective documents by the administrative structures is made against payment of fees. In their nature the due receipts in

2004 Annual Report for the Public Administration 31 these cases are state or municipal respectively (public or private). They are subject to being deposited in the respective budget and their collection has a considerable share for the realization of the planned budget for the respective financial year. Specifically for the state budget during the fiscal year 2004 it is adopted that the revenues from state fees amount to 393 576, 8 thousand BGL (p.2.2. of Article 1(1) of the Law for the state budget of the Republic of Bulgaria for the year 2004). This makes 25,15% of the total amount of the planned (expected) non-tax revenues for the state budget for the year 2004. The above amount does not include the collections from prices as well as the municipal receipts, which are planned and are subject to being deposited in the respective municipal budgets. From the above mentioned, It is obvious that the collections from fees and prices have, if not a leading, a considerable contribution for the budget for the respective fiscal year. The reports of the administrative structures for the previous year 2004 contain a report for the way of payment for activities performed and/or the documents granted by the central and the territorial administrations. It is for a first time that information was requested and presented for the way of making public of the specified fees and prices in the different administrations (in terms of type and amount). From the data presented we can state that the specified fees and prices are made public as follows:

Ways of making public the established fees and prices (in terms of types and amount) num % ber In forms 146 17.68 In Internet 152 18.40 At an accessible place in the building of the 336 40.68 administrative structure In another way 192 23.24

II.3.A. Types of fees and specified prices for services delivered by administrations at central level In the reports from the administrative structures at central level there are 613 types of fees pointed out which are collected by them. The types of fees are different in the respective administrative structures and are related to its scope of activities. The legal grounds for the collection of fees are contained in the Law for the state fees and in the laws regulating the activities of the respective administrative structures. In their nature these receipts are public state receipts. In principle their amount is fixed in the respective legal provision or through legal delegation - with tariffs, approved by the Council of Ministers. In the reports of the administrations at central level there are also data for the specified prices. It is pointed out that price is collected for 267 types of services, and from a total of 184 structures at central level 102 point that they do not deliver services against payment of a price. 49 administrations at central level report that the price is being established with a price list and the remaining administrations point to other way - Order Nr. 10/2001 of the Minister of Finance for determining the norms for the costs for providing public information according to the Law for access to public information, order of the respective minister, with contracts, agreements, etc. 104 administrative structures at central level point that they make public the specified fees and prices in another way (publiching in the State gazette, bulletins, newspapers, etc.), 88 - in an accessible place in the building of the administration, 67 - in Internet and 30 use the different forms to indicate the specific fee or price.

32 2004 Annual Report for the Public Administration II.3.B. Types of fees and established prices for services delivered by the territorial administration The service delivery by the regional administrations against payment of fees is also regulated in the normative acts. In Tariff Nr. 14 for the fees to be collected within the system of the Ministry for Regional Development and Public Works and by the regional governors (CoM Decree Nr. 175/1998) the amount of the fees which are also collected by the regional governors is fixed. Unlike the administrations at central level, where the different administrative structures have specific activities (which determines the difference in the fees and the prices) the activity of the regional administrations is related to the performance of the same functions. In analyzing the reports of the regional administrations for 2004 difference in the collected fees is again noticed. For example, the regional administrations Vidin, Lovech, Kjustendil, Pazardjik, Pernik, Plovdiv, Razgrad, Silistra, Sofia and Shumen do not indicate services for which they collect fees, while in the reports of other regional administrations collection of fees is indicated, i.e.: Varna and Burgas more tha 10 types; Targovishte, Haskovo and Sliven – 4 types; Vratza, Dobrich, Russe, Stara Zagora – 3 types; Gabrovo, Kardjali, Montana, Pleven and Sofia region – 2 types and in regional administrations Blagoevgrad, Burgas, Veliko Tarnovo, Jambol one type. This forces us to conclude that the different regional administrations apply the legal framework in a different way. There is difference also in the established prices in the respective regional administrations. 18 indicate that they do not have services against prices, and 6 indicate only one type of price. At the same time, the regional administration Pleven reports that price is due for two of the services, which are delivered by it; regional administration Dobrich indicates 3 types of established prices; regional administration Kjustendil – 4; and regional administration Stara Zagora – 12 types of established prices. The data above again force us to conclude that the legal framework is not applied in a single way for the types of prices as well (for example the provision of p. 2 of Article 20 of the Law for Access to Public Information explicitly regulates that the costs for provision of information are paid in accordance with norms defined by the Minister of Finance and the regional administrations are not exempt from the scope of application of this norm, i.e. for this service a price is due in all cases). It is obvious from the reports that in the different regional administrations the prices are fixed in a different manner. Thus 5 of them (Vidin, Pazardjik, Pleven, Smoljan and Shumen) report that the prices are fixed with a price list; 3 (Veliko Tarnovo, Kjustendil and Haskovo) point that the prices have been fixed in accordance with the Order Nr. 10/10.01.2001 of the Minister of Finance, and regional administration Gabrovo points to the order of the regional governor. Regional administrations Kardjali and Stara Zagora have not presented information for the way of fixing the prices for the services at their territory. The legal grounds for collection of local fees by the municipalities can be found in the Law for the local taxes and fees (Article 6, p. 1), which also defines the types of fees, to be collected by the municipal administrations. These fees have the character pf public municipal receipts, they are planned and are included in the municipal budgets. All municipal administrations, like the regional ones, perform identical activities and are the addressees of identical legal norms. Irrespective of this, the reported data for the municipal administrations also indicate different types of fees. From the data of the reports of the municipal administrations a suggestion could be made that where the types of taxes specified by secondary legislation are collected in some places, prices for services have been introduced for which the payment of a fee is legally provided. For example, the administrative and technical services for the delivery of which a fee is provided in the Law for the local taxes and fees are indicated as services for which fee is due. This will not have only formal consequences, having in mind that the fees are not bound with tax, while the prices for services are bound to payment of VAT. The introduction of prices instead of fees does not correspond to the Law for local taxes and fees and unjustifiably bounds the services paid with VAT, which increases their amount. Cases are noted where price is collected for services regulated to be free of charge. For example the filling of Form UP-2 and Form 30 has been pointed out as services for which a price is due.

2004 Annual Report for the Public Administration 33

Difference is noted also in respect of the way the prices are being established in the different municipal administrations. 85 of the municipalities report that the prices have been established with a price list, 139 indicate them to be determined in another way – through calculation, decision of the municipal council for every service, regulation of the municipal council, etc. The data from the reports of the municipal administrations force us to conclude that there is different application of the Law for the local taxes and fees and other laws with which the respective fees have been established and there is a necessity for the development of an unified nomenclature for the types of local fees. From the reports of the territorial administration it becomes obvious that 248 of the administrative structures have announced the fees and prices at an accessible place in the respective building, 116 – in forms, 88 – in another way (bulletin, newspapers, etc.) and 85 in Internet.

II.3.C. Fees and prices the collection of which has been transferred to other organizations, empowered to deliver the specified services In this respect the reports for the year 2004 of a total of 507 administrative structures have been analyzed. Almost in all reports of the administrations at central level it is indicated that in the year 2004 activities related to the collection of fees and prices have not been transferred to other organizations. It is only the Executive Agency “Maritime administration” that has indicated the activities related to the measuring of the weight of the sea ships and the survey of the ships and the legalization of the ships documents have been transferred to the company “Bulgarian Ship Register”. In analyzing the reports presented by the municipal administrations it is noted that the collection of fees and prices has been transferred mainly at territorial level. In the reports of the municipal administrations Balchik, Teteven, radomir, Chuprene, Pazardjik, Batak, Ivalovgrad, Dobrich, Ivanovo, Lovech and Targovishte it is pointed out that the collection of a total of 34 types of fees for services and the related activities and the number of the separated activities and services is largest in municipality Balchik (15). The transfer related to the fee for wastes, fee for use of crèches, kindergartens; for the use of places where fairs, meetings, fests, etc. are organized. In analyzing the reports in this part, it is noted that the collection of the foreseen fee is mainly left to the lower in rank administrations (the small municipalities) – 10 types of fees and of the respective territorial tax administration – 5 fees, i.e. the collection of fees and the performance of the activities has not been done outside the system of the territorial administration which is predetermined by the nature of the collections. There are cases in which the collection of fees and prices however together with the respective activity or service have been transferred to persons outside the territorial administrations. This mainly refers to the fee for the use of places for organizing fairs, meetings and fests; for the use of places for panorama, shooting grounds, carousels, etc., for the use of markets with the aim of trading with agricultural products, as well as for the fees for the use of sidewalks, squares, roadways and other terrains for trade activities outdoors; the fee for the wastes, the fee for crèches, kindergartens, etc. Examples here are the municipal enterprise in Balchuk, the respective kindergartens, schools and the territorial directorate “Social assistance”, traders and trading companies that are managing the sites. The reports do not present information for the way the activity related to the collection of the respective fee is being transferred (rent, concession, etc.), as well as the duration of the transfer. There is a positive tendency which is related to the reduction of the number of staff in the respective municipal administration and reduction of the costs including those for salaries. This tendency should be supported with the recommendation to secure the necessary control in respect of the quality of the performance.

34 2004 Annual Report for the Public Administration II.3.D. Free of charge services delivered by the administration A report for the free of charge services delivered in 2004 has been also presented. The administrations both at central and at territorial level report for services delivered free of charge. Some central administrations report for different types of free of charges services that they provide every day. They are different because of the different activity they provide. The largest number of the different types of services provided free of charge by the central administration are reported by the Ministry of Economy, the Ministry of Youth and Sport, the Ministry of Foreign Affairs, the State Agency for the Bulgarians Abroad, the State Agency for the Refugees, etc, Unlike the central administration, in the different territorial administrative structures (regional and municipal administrations) there is similarity of the activities performed. Regardless of this, when analyzing the reports one could find difference in the number of types of services provided free of charge in the different territorial administrations. For example, for the regional administrations the following is found: the regional administration Blagoevgrad is reporting for 45 types of free of charge service; regional administrations Vratza and Gabrovo – 46; regional administration Kardjali – 41; regional administration Varna – 20; regional administration Burgas – 15; regional administration Dobrich - 9; regional administration Haskovo - 2, and regional administration Vidin indicates that it has had no free of charge service for the year 2004. Similar differences are observed also for the municipal administrations. The majority of them indicate that they provide different types of free of charge services. The reports of 28 of the municipalities however state that they do not have services provided free of charge. These are the municipal administrations Valchi Dram, Pordim, Gorna Malina, Gotze Delchev, Dimovo, Novo Selo, Omurtag, Zlatiza, Kubrat, Krichim, Krumovgrad, Kalojanovo, Iskar, Dospat, Zavet, Mirkovo, Mizia, Nikopol, Nedelino, Nevestino, Rakovski, ruen, Smjadovo, Topolovgrad, Trekljano, Ugarchin, Hadjidimovo and Jakoruda. One could suggest that the grounds for the decision taken by the respective municipal councils for payment of a price is the provision of Article 6, p.2 of the Law for the local taxes and fees. In accordance with this provision for all services and rights granted by the municipality with the exception of those under p.1 (the waste fees, for the sue of markets, market places, fairs, sidewalks, squares and roadways, for the use of crèches, children kitchens, kindergartens, homes for social care, camps, hostels, and other public social services, for the yield of gravel materials; for technical services; for administrative services; for the buying off of tomb places; the tourist fee and other local fees, fixed with a law) the municipal council is specifying a price. We are forced to make the conclusion here that the provision mentioned above is not applied equally by all municipal administrations and the majority of them are providing different types of services free of charge.

II.4. Knowledge management Knowledge management is one of the basic processes accompanying administrative service delivery. The importance of the knowledge management is directly related to efficiency, where the managed knowledge permits people from the organization to cope with the day-to-day situations and effectively plans and generates their future. Knowledge management is dynamically evolving combination of methods, means, technologies and values, through which the organizations collect, develop measure, disseminate and provide return of their intellectual capital. The knowledge is principally different from the information and the data. Most of the employees in their work rely on the information, some employees rely on the information technologies, but all employees rely on knowledge. The knowledge is a capacity for effective action. It is usually in an unregistered form, cannot be found on the carriers standard for the information such as documents, forms, hard discs, etc., but instead it is stored in people’s minds. The knowledge is difficult to be revealed, can easily be lost, but it is always in some context. Quite a specific feature of the knowledge is that it “occurs”. Knowledge management consists of three elements:

2004 Annual Report for the Public Administration 35

■ accumulation of knowledge, ■ organization and storing of the knowledge gained and ■ sharing and efficient use of the knowledge gained. Knowledge management is such a means for helping the communication inside the organization and sharing of the specific information which is useful just fir these people and just at this moment. Most often in an organization of average size the tasks are solved by teams and quite often there is no communication between the teams. When a need for knowledge emerges the respective team is looking for the necessary information somewhere outside the organization or expects to find it on some type of carriers – documents, books, etc. The sought knowledge very often occurs to be nearby, in the other team that had already faced similar problem and had solved it. The issue is how to understand what do we know in fact? To know in any moment the people, to know their knowledge, their experiences, being enriched ever and ever again. The advantages of the introduction of a system for knowledge management are expressed in: ■ Finding the needed information. The technologies for knowledge management give a quick answer to the information searched. ■ Finding the people – the organization which uses a system for knowledge management can easily trace the people competent on the specific issue and find them. ■ Collecting in one point is the third stage of knowledge transfer. After it is known what is available on a specific issue and who can explain it, the problem for where the knowledge can be discussed and transferred is solved. The advantages of the managed knowledge are: ■ Speed of reaction. We are living in dynamic times and everything is developing incredibly fast and the timely decision making is one of the features that increase the competitiveness of the organization. ■ Adequacy to the environment. If an organization could be in pace with or if it could outpace the rate with which the environment is developing, then it would react adequately and could be a desired partner. ■ The effective use of the intellectual capacity. It is an undoubted advantage for an organization to know at any time what it has at its disposal and to have the capacity to use this recourse to the full. An organization could incorporate financial and material capitals, but the real capital is the people working for it. ■ Qualification and training – the problem with the fluidity of employees. Quite of small number are the organizations that could say that they do not have problems with the fluidity of personnel; that they have shortened at the most the time for training and introduction of the newcomers into the working process and have succeeded to minimize the costs for this. ■ Openness to external information sources. Not only the organization to use what it knows but to be in a position to use external information sources. Knowledge management is important only to the extent to which it improves the capabilities and the capacity of the organizations to cope with and to develop their: ■ mission, ■ competitiveness, ■ performance and ■ change. The present report is attempting for a first time to make an analysis of the knowledge management in the public administration through the data received in the system for self-

36 2004 Annual Report for the Public Administration assessment of the administrative service delivery. Through the system information was gathered for stage of introduction of the electronic system for knowledge management in the administrations. The answers received from the administrations show that the essence of the knowledge management is still a new practice in the work of the administration and it is not aware how this system can improve the efficiency of the performance of the employees. Out of 295 administrative structures that have presented information through the system, 204 report that they still have not started to introduce an electronic system for knowledge management. Among the reasons for this they point to the lack of technical, financial and human resources. Among the frequently made mistakes consists in the fact that knowledge management is confused with information management and the knowledge management being attributed to the area of the information technology. This mistake is obvious in the answers presented by the majority of the administrations. From 80 administrations that have responded that they have started to work on the electronic system for knowledge management to some extent, 30 indicate as a specific identical system the provision of access of the employees to various legal information systems and access to Internet (the National agency for vocational education and training, the Public Procurement Agency, the Executive agency for transplantations, the regional administrations Kjustendil and Pazardjik, the municipal administrations Lom, Madan, Mezdra, Panagjurishte, etc.). The essence and the advantages of the introduction of a system for knowledge management are not very clear mainly for the territorial administrations (municipal administrations Kazanlik, Kocherinovo, Mirkovo, Provadia, Ruzhinzi, Suhindol and Poduene Region in Sofia municipality). The municipal administrations Bozhurishte and Chirpan report that they do not need such a system to be developed, the Basin directorate region and the municipal administration Veliki Preslav have not set such a task and that is why do not work in the direction of creating such a system. In the year 2004 the advantages of the system for knowledge management have been used predominantly by the structures at central level. Ten structures of the central administration (Privatization Agency, General Tax Directorate, State Commission for Energy Regulation, Executive Agency “Certification and Testing”, Executive Agency for Environment, the Ministry of Foreign Affairs, the National Agency for assessment and accreditation and the Executive agency for the soil resources, the Ministry of the Interior, the Ministry of Transport and Communications) and 10 territorial administrations (regional administrations Blagoevgrad, Razgrad and Veliko Tarnovo, municipal administrations Assenovgrad, Beloslav, Varna, Vratza, Maglizh and Svishtov, region Trakia of Plovdiv municipality) have built and are using Intranet through which they exchange “best practices”, there have published “Questions and answers” in the field of competency of the respective structure, procedures for solving different cases, arising in the process of work, as well as normative documents, related to the activities of the specific organization. Real electronic systems for knowledge management are in existence in the Basin Directorates – Black sea region, the Ministry of Finance, the municipal administrations Sliven, Haskovo, Dobrich and Kubrat. A good example for a system for knowledge management is the municipal administration Sliven, where there is an open and flexible information system, created to satisfy the needs of all units and to be used from the municipal employees to improve their knowledge. Every employee from the municipal administration can use the system not only in a passive mode bust also to actively add materials useful for his/her colleagues. In the information system there is a catalogue of all administrative services provided by the municipality. There are also information bulletins related to the public administration and the local self-government, as well as information for financing of programmes, projects and innovative practices. Steps for building a system for knowledge management have been undertaken in the National statistics Institute, the Ministry of Justice, the State agency for Child Protection, and the

2004 Annual Report for the Public Administration 37

Executive Agency “Maritime administration”, the Directorate for National and Construction Control and the National centre for information and documentation, in which the answers to the most often asked questions are systematized, specific activities have been improved, which to some extent could be standardized and projects for their description are under development. From the analysis of the answers of the administrations we can make the general statement that knowledge management is not a process as an end in itself. It is a tool enabling the organizations to work effectively and has to be related to their goals.

38 2004 Annual Report for the Public Administration III. Register of the administrative structures and the acts of the executive http://www1.government.bg/ras

In implementing its mission to serve the public interest in an effective and transparent way, the public administration provides full and updated information for its activities through the Register of the administrative structures and the acts of the executive. The keeping of the Register facilitates the interaction between the structures in the system of the executive. The access of 45 603 customers of Internet to the information provided in the Register has been recorded for the year 2004.

2001 2002 45 603 60 967 2003 2004

72 091 37 623

diagram III-1. Access to the Register of the administrative structures and the acts of the executive

The results from the survey of NZIOM show that Internet is the communication tool with the administration most seldom used by the citizens. Just about 2% are looking for communication with the administration through Internet, and predominantly the people aged between 18 and 39 years, the university graduates, the people living in Sofia, and the people with high living standard are benefiting from the information capabilities of the Network. The survey presents information for what the Bulgarian citizens would like to know about the administration. 40% all interviewed would like to know more about the work of the administration. One third would like to know more about the way the decisions are made, another third – about the types of administrative services, and 12% would like to know the structure of the administration. The data of the survey is supported by the access recorded for the different information categories, kept in the register.

70 000

60 000 60 621 2003 2004

50 000

40 000

30 000 23 138 20 000 18 171

10 000 9 536 4 294 0 1 934 searches in the information for the searches in the information for the searches in the information of the administrative structures regulatory regimes announcements for competitions for civil servants (entries are made from mid November 2003)

diagram III-2. Number of visits in the sites for the different information categories in the Register of the administrative structures and the acts of the executive

In the past year, enlarging the scope of information introduced into the Register all administrative structures at central level have published full information for their territorial units which are in the deconcentrated administration. The information introduced has provided full presentation of the structures at central level with all territorial units, the number of their personnel, their functions and vacancies.

2004 Annual Report for the Public Administration 39

In the year 2004 training was organized for more than 150 employees which have to make entries and to exercise control in the 28 Regional health centres, 28 Regional education inspectorates, the Directorates National Parks, the Basin directorates, the Regional inspections for environment and waters and the 24 regional administrations of Sofia municipality. In February 2004 training was organized also in relation to the use of the possibility realized in the year 2003 for centralized provision of legal information for the Register. The participants were employees from all ministries, administrative structures under the Council of Ministers and the 28 regional administrations. The basic aim of the training carried out for employees making entries and executing control on the information in the Register is the provision of methodical assistance and improvement of the efficiency of keeping it. The problems faced in the year 2003 in relation with the requirements for entry of information for the regulatory regimes and the published acts for their application in the Register are not yet overcome. All territorial administrations have difficulties in determining the number and the type of regulatory regimes, which are administered by the regional governors and the mayors of municipalities, and of the issued individual administrative acts subject to entry. The diversity of the information entered into the Register by the territorial administrations is in support to this problem. In the year 2004 information for the regulatory regimes administered by the administrative structures of the executive has been entered into the Register by 11 ministries, 67 structures at central level, 8 regional administrations (Varna, Dobrich, Pazardjik, Pleven, Plovdiv, Russe, Sofia and Jambol) and 129 municipal administration. The information entered for 580 regulatory regimes administered by the central administration, from 1 to 4 regulatory regimes administered by the regional administrations and from 1 to 40 regulatory regimes administered by the municipal administrations. Out of them: ■ 54 licensing regimes are administered by the central administration and up to 8 regimes by the municipal administrations (municipal administration Rakovski); ■ 236 permission regimes are administered by the central administration, 1 to 4 by the regional administrations and from 1 to 24 by the municipal administrations. ■ 170 registration regimes are administered by the central administration, 1 registration regime is administered by the regional administration and between 1 and 40 regimes by the municipal administrations; ■ 120 coordination regimes are administered by the central administration and between 1 and 9 regimes by the municipal administration. After the restructuring of the Agency for small and medium enterprises there is no efficient methodical assistance and control for the correctness, completeness and actuality of the information for the regulatory regimes because of the lack of a specific unit to carry out these functions and which is concerned with the economic sector policy. The lack of methodical instructions and assistance by experts competent in the field renders more difficult the work of the employees who are obliged to make entries of information for the regulatory regimes. In the year 2004, 382 894 individual acts are entered into the Register, out of which 270 903 are entered by the central administration and 111 991 by the territorial administrations (342 by the regional ones, 55 634 by the municipal administrations and 56 015 by the administrations of municipal regions). From the acts entered: ■ 36 468 are entries for licenses for economic activities (30122 licenses by the central administration, 6 053 by the municipal administrations and 293 licenses by the administrations of the municipal regions); ■ 209 967 are the entered permissions for economic activities (143 757 permissions from the central administration, 88 permissions by the regional administrations, 36 546 permissions by the municipal administrations and 29 576 permissions by the municipal regions);

40 2004 Annual Report for the Public Administration ■ 86 897 are the entered registration acts for economic activities (56 877 registration acts by the central administration, 254 registration acts by the regional ones, 11 994 registration acts by the municipal administrations and 17 772 registration acts by the municipal regions); ■ 49 562 are the entered coordination acts for economic activities (40 147 permission acts by the central administration, 1 041 permission acts by the municipal administrations and 8 374 coordination acts by the municipal regions). The largest number of acts for regulatory regimes are entered into Register by the Ministry of Environment and Waters (91 104), Executive Agency "Automobile administration" (42 856), Ministry of Economy (28784), the State Agency for Metrology and Technical Surveillance (20864), Zapaden region (35 766) and Trakia region (5 112) of Plovdiv municipality, the municipal administrations Russe (9 407) and Dobrich (5914). From the 8 regional administrations that have entered individual acts fo regulatory regimes regional administration has entered the greatest number of them - 254. The information entered into the Register for the individually issued administrative acts for the regulatory regimes (licenses, permissions, registrations and coordination) often duplicates the obligation of the administrative structures to keep registers for the individual acts they are issuing, which permit a specific type of social and economic activities. In October 2004 in relation with the entry of correct information concerning the number and type of regulatory regimes administered by mayors of regional administrations a good initiative was realized by the employees of Triaditza region of Sofia municipality. Supported by the National association “Legal initiative for local self-government” the legal experts working in the region administrations and the employees who enter information into the Register have clarified and specified the regulatory regimes and the issued individual administrative acts subject to entry into the Register. This will contribute to standardize the practice in all regional administration on one side and on the other - will guarantee the keeping of correct information for the regulatory regimes administered by the mayors of regions. Entry of the general information for the regulatory regimes administered by the mayors of regions into the Register is under way. The control is a part of the whole organization, inside every administrative structure and should be related to the mechanism for timely provision of the information to be entered, survey, permanent checks and the liability on the part of the employees which пренебрегват their obligations for keeping the Register. In view of the creating internal organization for keeping the Register in the Regulation for keeping the Register there the explicit obligation for an employee to be nominated in every structure who will realize direct control in the entry. Orders for the nomination of the employees who exercise direct control on the entries in the Register have not been issued (respectively sent to the State Administration Directorate of the CoM) by the Ministry of Interior, the National Statistics Institute, the Agency for the State Collections and Customs Agency, the regional administration Veliko Tarnovo, the municipal administrations Nessebar, Sungurlare, Dalgopol, Elena, Svishtov, Suhindol, Belogradchik, Boinitza, Ardino, Trekljano, Lukovit, Kovachevtzi, Sopot, Vetovo, Kainardza, Tutrakan, Borino, Etropole, Koprivshtitza, Pravetz, Pirdop, Pavel banja, Nikola Kozlevo, region Vladislav Varnenchik, region Asparuhovo of Varna municipality, region Vazrazhdane of Sofia municipality. The municipal administration Sandanski has not sent the order of the mayor for nomination of the employees making the entries into the Register. The chief executives of the Executive agency “Military clubs and information”, the state Commission for hazard, the municipal administrations Karnobat, Malko Tarnovo, Vetrino, Suvotovo, Provadia, Veliko Tarnovo, Gorna Orjahovitza, Chuprene, Mizia, Orjahovo, Shabla, Nevestino, Berkovotza, Geogi Damjanovo, Montana, Cherven briag, Knezha, Brezovo, Isperih, Tzar Kalojan, Dospat, Madan, Mirkovo, Ivalovgrad, Svilengrad, Straldza and region Mladost of Varna municipality have to ipdate the orders in view of the change of the employees responsible for the control and making entries into the Register. In 2004 after established violations of the Regulation for the conditions and the order for keeping the Register written notices were sent to the executives of 158 administrative structures. Most of these violations have been established for the territorial administrations (120). The common

2004 Annual Report for the Public Administration 41 problem related to the keeping of the Register is that the employees who make entries in it do not update the data and do not enter the information correctly. The most often sent notices to the executives of structures at central level are related to the violation of the terms for reflecting the changes in the information in accordance with the requirements of the Regulation for keeping the Register, During the last year there were established two or more violations in the Ministry of Regional Development and Public Works, the Ministry of Transport and Communications, and the Ministry of Labour and Social Policy. Concerning the territorial administrations, the notices most often sent to the executives have been related to the violation of the terms for updating the information, while in the municipal administrations – failure to update the names of mayors, deputy mayors and secretaries, the total number of staff and the vacancies, as well as incorrect entries of job position and reflection of the hierarchical subordination of the administrative units. In 2004, two or more violations have been established for 4 regional administrations (Varna, Veliko Tarnovo, Pleven and Smoljan), 20 municipal administrations and 4 administrations of municipal regions (regions Vazrazhdane, Krasno selo, Nadezda and Novi Iskar of Sofia municipality). More than twice have been sent notices to the employees from the municipal administrations Avren, Banite, Godech, Garmen, Dospat, Ihtiman, Kainardza, Pordim, Pravetz, Rila, sadovo, Svoge and Ugarchin, they still have not entered the complete information they are obliged to enter into the Register. For the five years from the creation of the Register, it is only municipal administration Ihtiman that has never made any entry of information into it. Actions on the part of the officials executing control on the entries into the Register and the executives of administrative structures have been undertaken only in 6 structures at central level. The measures undertaken by them for eliminating the deficiencies vary between remark and discussions with the persons responsible to make entries, nomination of another employee to notice and dismissal of the officials (the State Commission for the Hazard). At territorial level it is only in 23 structures (2 regional administrations and 21 municipal ones) that measures have been undertaken by the persons executing control on the entries. Concerning the municipal administrations in which system violations of the Regulation have been established it was only the mayor of municipality Tutrakan who had undertaken actions for imposing disciplinary sanction. No measures have been undertaken by the persons exercising control or the executives of the regional administrations and the administrations of the municipal regions where the employees failed to fulfill their obligations related to the entries into the Register. In general, at territorial level the measures undertaken are remark, discussions and replacement of the officials responsible for the entries. Problems of technical nature, unstable Internet connection (municipalities Banite, Godech) and insufficient capacity of human resources (municipality Apriltzi) are the motives of the executives not to undertake actions for sanctioning the employees. In March 2004 the solving of the problem for the computer provision of the territorial administrations for keeping the Register has been assisted through the centralized supply of computers, bought with the financial support of the a Phare 2001 project for all municipal administrations and administrations of municipal regions. With the contract signed between the Minister of State Administration and the mayors the latter have undertaken to provide the computers to the employees keeping the Register. However there are cases of computers that are not used for the purpose. The officials or employees who exercise control on the entries into the Register from 179 structures of the administration at central level and 252 structures at territorial level have noted no violations and this is contributing to the improvement of the transparency in the work of the administration. The basic difficulties faced by the employees in the central administration when dealing with the Register are most frequently related to the use of the possibility for centralized provision of legal information.

42 2004 Annual Report for the Public Administration The difficulties faced by the employees in the territorial administration are of technical and organizational nature – lack of reliable Internet connection and insufficient human resource capacity. The nomination of employees with expert knowledge of the information to be entered into the Register (particularly in relation with the regulatory regimes and the organization of the administration) has a decisive role in order that the Register be correctly kept. The nomination of employees having pure technical knowledge for operating a computer and in Internet medium is the cause for the difficulties related to the correct data entries. It is a good practice to separate the activity on the entry of information in the Register from that for its presentation on the part of the employees who have expert knowledge in relation to the information subject to entry into the Register. In general there is no practice in the administration for the creation of internal organization for provision of information to the persons entitled to make entries into the Register. Actions in this respect are undertaken by executives of some structures. The executives of 167 structures in the territorial administration have not introduced mechanisms for internal organization for keeping the Register. Even in the municipal administrations which do not make the entries themselves because of technical incapacity to do so (municipalities Nevestino, Trekljano, Zemen, Kovachevtzi, Kainardja, Isperih, Dospat and Mirkovo) still there are no internal procedures for providing the information to the respective regional administrations. There is a positive tendency in 2004 as compared to the year 2003 for increase of the number of structures which have established internal rules and procedures for keeping the Rgister. This tendency is most clearly expressed in the territorial administrations, in 110 of which (12 regional, 86 municipal and 12 municipal regions) there is organization for provision of information of the employees making entries. The approaches used by the different structures in relation to the establishment of internal organization for the correct keeping of the Register are different. The order of the employment authority contains in detail the responsibilities of the employees in charge of making entries in the register, the terms for the entry of information and the mechanisms for its provision between the different units and the employees in the Ministry of Health, municipal administrations Smoljan, Sredetz, and Shumen, region Studentski of Sofia municipality. The internal rules specify the ways and the terms for provision of the information necessary to be entered to the employees making the entries and exercising control in the Register in the Ministry of Labour and Social Policy and regional administration stara Zagora. The rules for the document flow specify the ways and the terms for the provision of the necessary information to be entered in the Register in the Ministry of Education and Science, the Executive Agency for fishery and aquaculture, the Regional health centres in Kardjali and Sliven, the regional administration Jambol, and the municipal administrations Bjala and Ivanovo. The Rules of Procedure of the Ministry of Economy, the Ministry of Transport and Communications, the State Agency for child protection, the State Agency for the refugees, the regional inspections for environment and waters regulate the obligation for keeping the Register. Good practices have been established in the Executive agency “Testing and verification measurements of armament, equipment and properties”, where the organization of the keeping of the data in the Register has been regulated in the Quality Manual. Besides through the creation of internal organization for provision of the information subject to be entered in the Register, the reflection of the obligation of the employees for keeping this information in their job descriptions undoubtedly results in improvement of their work. In a large number of the structures at central and territorial level the responsibilities of the persons entitled to make entries and exercise control on the information have been reflected in the job descriptions of the respective employees.

2004 Annual Report for the Public Administration 43

2004 2003 59% administration at central level 53%

75% regional administrations 54%

55% municipal administrations 36%

0% 20% 40% 60% 80% 100%

diagram III-3. Reflection in the job descriptions of the obligations of the employees who make entries of data into the Register

The practice established in the previous year for informing the executives of administrative structures for the employees that had performed their obligations related to the keeping of the Register in an efficient, high quality and timely manner has continued in 2004. The professional and responsible performance of these obligations has been evaluated during the performance appraisal of more and more employees. It is for a second year that the responsible bahiavour of the employees working on the Register in the Ministry of Economy, the Ministry of Education and Science and the Ministry of Finance has been highly appraised. Furthermore, a positive appraisal for the timely and high quality execution of the obligations for keeping the register has been received by the employees in 14 structures at central level (Ministry of Energy and Energy resources, Ministry of Justice, the State Agency for Child Protection, the Tourism Agency, the executive agencies “Roads” and “Certification and Testing” , the Executive agency for economic analysis and forecasts, the Agency for the entries, the National film centre, the Basin directorates – Plovdiv and Blagoevgrad, the Tax administration, the National forests service, the Regional inspection for environment and waters – Blagoevgrad), 5 regional administrations (Dobrich, Vratza, Razgrad, Russe, Sliven) and 5 municipal administrations (Asenovgrad, Aitos, Pazardjik, Plovdiv and Jambol)

44 2004 Annual Report for the Public Administration IV. Civil service2

The strategic goal in human resource management is the establishment of a professional, politically neutral and accountable public administration. To this end, the Civil servant’s Act has regulated the compulsory competition procedure for “entry” into the administration, career promotion has been based on merits, payment has been related to the performance appraisal, rules for ethical conduct of the employees have been established, mechanisms have been regulated for preventing conflicts of interest, the term “civil servant” has been better defined. In the year 2004 normative acts have been developed that permitted these principal amendments to be applied into practice. A Regulation for competitions for civil servants has been approved with CoM Decree Nr. 8/16.01.2004. It has regulated a transparent competition procedure built on the competition principle based on professional qualities and skills of the applicants, ensuring equal access of the citizens to the civil service. The Regulation has established unified rules for the competitions, and their detailed regulation reduces the possibilities for arbitrary interpretation during its application. With CoM Decree Nr. 8/16.01.2004 the procedure of the competitive selection in promotion to a higher position in the administration has been regulated. The regulation of this procedure contributes to the realization of the principle for each position in the administration to be occupied through competition on one hand, and on the other this ensures the career growth of the employees with best performance results. With Decree Nr. 47/01.03.2004 the Council of Ministers has approved an Unified classifier of the positions in the administration. It clearly defines the positions specified for civil servants. The positions are grouped into position levels having equal requirements for their occupation. The CoM Decree Nr. 48/01.03.2004 for the salary has specified the mechanism for the increase of the salary related to performance results. In this way the best performers receive the highest percentage of salary rise, and the salary of the worst performers does not change. This normative act also regulated the salaries for all positions in the administration through the specification of minimum and maximum levels. With Decree Nr. 126/11.06.2004 the Council of Ministers has approved a Code of Conduct for the employees in the public administration. The Code outlines the basic principles and norms of behavior of the employees in their relations with the citizens, in their professional activity, relations with the colleagues, and in their personal lives. The Code is aimed to raise public trust in the professionalism and morale of the employees and the prestige of the civil service. It should be noted that the new Code covers not only the civil servants but its scope of application is extended to also cover the employees on a Labour Code in the public administration. With an Order Nr. Р-9/20.02.2004 the Minister of State Administration has approved a model declaration for the prevention of conflicts of interest to be filled in by the civil servants until 31 March every year. In order to improve the dialogues between chief executives and employees, the achievement of coordinated and significant goals and high professional results the practice of application of the performance appraisal of the employees has been kept. The present report for the administration is a good instrument to render an account of the efficiency of the amendments made and the results achieved in the year 2004.

2 In this section no information is reported about the employees working in the Ministry of Interior. 2004 Annual Report for the Public Administration 45

IV.1. Number of employees Section І of the Report gives an exhaustive list of the administrative structures that have not presented their reports for the administration for 2004. That is why in order to report the real number of employees in the public administration we have used additional information from the Register of the administrative structures and the acts of the authorities of the executive. The total number of employees in the public administration for 2004 is 85 340 out of which 36 943 are positions for civil servants, 48 237 are positions for employees on the Labour Code and 160 positions are specified for interns. Proceeding from these added data, the number of employees in the public administration for 2004 as compared with their number for 2003 has been increased with 5,3% (at 81 062 reported for 2003), while the positions for civil servants have increased with 42,3% (at 25959 reported for 2003).

100% civil servants 80% 68% employees on the Labour Code 60% 57% 43% 40% 32%

20%

0% 2003 2004

diagram IV-1. Ratio of the job positions for civil servants to job positions on the Labour Code within the total number of

employees , 2003 -2004 Of the total 62 480 employees in the administration at central level, 31 854 are for civil servants, аnd 30 608 – on the Labour Code. 18 positions have been specified for interns. In the regional administrations there is a total of 1 092 employees. The civil servants positions out of them are 752, and on the Labour Code – 339. There is one position for interns. The total number of employees in the municipal administrations, including the municipal regions, is 21 768, out of which 4 337 are for civil servants, and 17 290 – on the Labour Code. 141 positions are specified for interns.

job positions for civil servants job positions on the Labour Code central administration 2004 51% 49%

central administration 2003 37% 63%

territorial administration 2004 22% 78%

territorial administration 2003 16% 84%

0% 20% 40% 60% 80% 100%

diagram IV-2. Ratio of the job positions for civil servants to job positions on the Labour Code within the total number of

employees by types of administration It was obvious from the data received that the civil servants positions in the administrations at central and at regional levels exceed those on the Labour Code. Only 19,9% are the positions for civil servants in the municipal administrations, while the positions on the Labour Code are 80,1% which shows that they have not yet fully introduced the civil servants status.

46 2004 Annual Report for the Public Administration The information referred to hereinafter includes data only from the reports of 462 administrative structures. In accordance with the data presented by the administrative structures, the total number of employees in the public administration for 2004 is 82 025 (with 1.2% more than this in 2003), out of which 36 311 positions for civil servants, 45 554 positions for employees on the Labour Code and 160 positions are specified for interns. Of the total 62 400 employees in the administration at central level, 31 806 are for civil servants, аnd 30 576 – on the Labour Code. Only 18 positions are for interns. It is quite satisfactory that all regional administrations have presented their reports for the administration, in which the positions approved with their Rules of procedure amount to 1 092, including 752 for civil servants and 339 for employees on the Labour Code. In the budgets of the municipal administrations, including the municipal regions, a total of 18 533 employees are specified, out of which 3 753 are for civil servants, and 14 639 – on the Labour Code. 141 positions are provided for interns. It is obvious from the data presented above that notwithstanding the fact that for the whole public administration the positions for civil servants are less that the positions on the Labour Code (36 311 for civil servants and 45 554 on the Labour Code), at central and regional level the number of civil servants exceeds the number of employees on the Labour Code. At the central level they represent 51% of the positions and in the regional administrations – 68,9%. In the municipal administrations only just 21% are the civil servants positions and 79% are for employees on the Labour Code. This fact is quite indicative for the mass application of the civil servants status after the new Unified Classifier of the positions in the administration and the Regulation for its application have entered into force in the year 2004. From the comparative table for the number of employees in the public administration for the period from the year 2000 to 2004 the gradual increase of the positions for civil servants is evident. 2001 г. 2002 г. 2003 г. 2004 г. 3 2004г. 4

% % % % % compared Number of compared Number of compared Number of compared Number of compared Number of to the civil to the civil to the civil to the civil to the civil year servants year servants year servants year servants year servants 2000 2001 2002 2003 2003

Central administration +12,9 14 850 +35,7 20 154 +12,7 22 711 +40,0 31 806 +40,3 31 854

Regional administration -4,00 460 - 462 -1,3 456 +64,9 752 +64,9 752

Municipal administration +32,1 3 001 -2,4 2 928 -4,8 2 792 +34,4 3 753 +55,3 4 337

Total job positions for civil servants +15 18 311 +28,6 23 544 +10,3 25 959 +39,9 36 311 +42,3 36 943

Total number (civil servants + employees on +80,9 67 228 +7,9 67 408 +20,2 81 062 +1,2 82 025 +5,3 85 340 Labour Code) Incl. Incl. positions for positions for interns interns

table IV.1-1. Total number of employees in the public administration5

3 According to information presented by the administrations 4 According to information presented by the administrations and data from the Register of the administrative structures for the administrations that have not presented their reports 5 No information is included in the table for the number of employees working in the Ministry of Interior 2004 Annual Report for the Public Administration 47

The growth in the number of the employees in the administration at central level in 2004 is due mainly to two factors: the creation of new administrative structures during the year, (the Agency for the entries, the Public procurement agency, the Executive agency for transplantation, “Migration’ Directorate, the Fund for medical treatment of children) as well the increase in the number of personnel of existing administrative structures in relation with additional functions, optimization of structures, etc. (“Customs” agency, State commission for information security, the Cadastre agency, the Executive agency “General Labour Inspection”, Ministry of Labour and Social Policy, etc.). The number of employees in the regional administrations has been increased with 56 in 2004 in relation with the entitlement of additional powers of the regional governors and new functions of the regional administrations. In accordance with the Methodics for determination of the number of personnel in the activity “Municipal administration” delegated by the state approved with CoM decision Nr. 544/2004 the number of employees of some municipal administration was increased in 2004 with a total of 1 040. In the administration of the executive there are deconcentrated structures (for example the regional customs directorates, the specialized territorial units of the National forests service, the regional directorates for social assistance, the regional health centres, the directorates National Parks, the regional inspections for environment and waters, the regional inspectorate for education, the regional inspections for protection and control of the public health, etc.) with a total of 56 096 employees. The Civil Servant’s Act is in force from the year 1999 and still there are administrations with no civil servants. There are different reasons for this – failure to enforce the legal provisions by the chief executives, incorrect interpretation of the Law for the administration in respect to the municipal administration, which in a number of cases is considered not to be part of the public administration. The scope of application of the civil service is clearly defined with the amendments of the Civil Servant’s Act and with the approval of the New Unified Classifier of the positions in the administration and this problem has to be overcome. It is to be noted again that the status of civil servants at central administration level is not yet introduced in the Tax administration. The structures created under Article 60 of the Law for the administration such as the National students house, the Institute for the tobacco and the tobacco products, the Bulgarian- German centres for vocational training Pazardjik, Pleven and Stara Zagora, the National centre for professional development do not have the obligation to introduce the civil servants status. With the adoption of the Law for the telecommunications in 2003 and of the Law for the Commission for financial surveillance, all civil servants respectively from the Commission for regulation of the communications and the Commission for the financial surveillance have been transferred to employees under the Labour Code. This fact is quite worrying because the employees having control functions are outside the scope of application of the Civil Servant’s Act. The argument for the status of an independent body is unacceptable because the question is for employees in the public administration and not for intervention in the powers of the authority being supported by these employees. The municipalities that have not introduced the civil servants status are Sofia, Kjustendil, Vratza, Bjala (Russe region), Gramada, Sapareva banja, Nessebar which makes 2,6% of all municipal administrations.

48 2004 Annual Report for the Public Administration administrative structures w ith civil servants status introduced administrative structures w hich have not introduced the civil servants status 2004 98,3% 1,7%

2003 96% 4%

2002 96% 4%

2001 93% 7%

2000 74% 26%

0% 20% 40% 60% 80% 100%

diagram IV-3. Comparative data for the introduction of the status of civil servants in the administrations of the executive

A total of 12 882 are the managerial positions in the public administration, out of which 8 511 for civil servants and 4 371 on the Labour Code. The managerial positions for civil servants are divided as follows: 6 496 at central level, 156 in the regional administrations and 1 859 in the municipal administrations. Out of them the positions for directors are 1 320 at central level, 55 at regional level and 626 at municipal level. The managerial positions on the labour code are distributed as follows: 1 087 at central level, 83 at regional level and 3 201 at municipal level. Out of them the positions for directors on the Labour Code are 216 at central level, 108 at municipal level and at regional level there are no positions for directors on the Labour Code. A tendency is observed for reduction of the number of managerial positions on the Labour Code at territorial level. In 2004 this number is with 27% less than in 2003 (the number of 4 173 reported in 2003 are reduced to 3 284 in 2004). The number of the managerial positions as civil servants at central level is almost unchanged as compared to 2003. The managerial positions occupied under the Labour Code are in conflict with the general principle that the managerial positions are to be occupied only by civil servants (Article 13 of the Law for the administration). The exemption of these employees from the scope of application of the Civil Servant’s Act is regulated in special laws, but this again leads to the conclusion that in order to have an unified civil service the general principles have to be steadily followed. The total number of the expert positions in the public administration is 57 735, of which 27 800 are for experts with analytical and/or control functions, and 29 775 – for experts with auxiliary functions. 11408 are the supporting positions under the Labour Code. From the reports of the administrations it has to be notes that the number of the experts with supporting functions is three times higher than the number of experts with analytical and/or control functions (7 586 expert positions are under the Labour Code and 2 490 expert positions are for civil servants). This fact shows again that the municipal administrations are still benefiting from the right granted to them by the normative acts that some experts with analytical and/or control functions be temporarily employed under the Labour Code. In the year 2004 the vacant positions in the public administration have been 4 017, which represents 4,9% of the total number of employees in the administration and is with 272 positions more as compared to 2003. The occupied positions represent 95,1% of all the positions in the administration. Their number is 77 848 and other 160 positions are occupied by interns.

2004 Annual Report for the Public Administration 49

4,9% filled in positions vacant positions

95,1%

diagram IV-4. Filled in positions and vacant positions in the administration

To 31.12.2004 the reported vacant positions for civil servants are 2 672, most of which are at central level (2 239) and 1 345 vacant positions under the Labour Code, 952 of which are again in the central administration. A large portion of the vacant positions for civil servants are those in the Agency for state internal financial control (136), the Agency for social assistance (199), The state commission for security of information (23), The Employment agency (105), the Cadastre agency (100), the Ministry of Regional Development and Public Works (56), the Ministry of Agriculture and Forests (204), Ministry of Economy (45, Ministry of Health (30), etc. A large number of the vacant positions under Labour Code are reported by the “Customs” agency (80), the Tax administration (271), the National revenue agency (80), the Commission for regulation of the communications (20), etc. A total of 1 514 positions in the administration have been vacant for more than 6 months, which is with 53 more compared to 2003. 1 066 positions for civil servants have been vacant for more than 6 months, out of them 824 in the central administration. 448 are the positions under Labour Code that have been vacant for more than 6 months, 226 out of which at central level, mostly in administrative structures established by a law such as the Tax administration, etc. From the total of 463 administrations that have presented their annual reports, 254 have reported increased number of employees in 2004, 136 have no change, and 72 structures have reduced the number of employees. Considerable increase in the number of personnel is reported by the Ministry of Justice (344), the National service for plant protection (115), the Executive agency for environment (194), the Executive agencies ”Social activities within the Ministry of Defence” (180) and “Fight with the hailstorms” (20), “Customs” agency (75), the Cadastre agency (50), municipal administrations: Dobrich (69), Pazardjik (30), Madan (25), Petrich (38), etc. Reduction of the number of personnel in 2004 is reported by the Employment agency (-259), the Tax administration (-96), the Directorate for national construction control (-31), the Executive agency “State property of the Ministry of defence” (-100), the municipal administrations Smoljan (- 16), Sozopol (-18), etc. From all the really occupied positions for civil servants (33 639), 53,7% are women and 46,3% are men. The managerial positions in the public administration are mainly occupied by women – 55,9%, and the men occupy just 44,1% of these positions.

50 2004 Annual Report for the Public Administration

really occupied positions for civil 55,9% servants 44,1% civil servants at managerial positions 53,7% 46,3%

women men diagram IV-5. Ratio between women and men civil servants

642 civil servants work by substitution (Article 15 of the Civil Servant’s Act), 518 of them being in the central administration, and 124 in the territorial administration. From all the really occupied positions under the Labour Code (44 209) prevailing are again the women – 61,6%, and the men are 38,4%. This ratio turns to be in favour of the men for the managerial positions under the Labour Code. Just 32,5% of them are occupied by women, and 67,5% - by men.

67,5% really occupied positions under the Labour Code

employees on managerial 32,5% positions under the Labour Code

38,4% 61,6%

women men

diagram IV-6. Ration of man and women working under the Labour Code

538 young people are working in the public administration along a programme for youth’s employment, 337 of which are at central level, 40 at regional level and 161 at municipal level. 2 521 competitions for civil servants have been announced in 2004 in the Register for the administrative structures - 1789 at central level and 732 at territorial level. 768 out of them for managerial positions, and 1699 for expert positions. The terminated competitions in the Register are 341 – 209 competitions at central level and 132 at territorial level.

concept for strategic written essay on a management political, economic, 204 cultural, social or managerial topic 390 test 1 514 practical exam 628

diagram IV-7. Preferred method for the competition in terms of number of announcements for civil servants

2004 Annual Report for the Public Administration 51

1143 competitions for expert positions competitions for managerial positions

506 358 221 164 121 123 45

Test Written essay on political, Concept for strategic management Practical exam economic, cultural, social and managerial topic.

diagram IV-8. Methods chosen in combination in announcing the competitions for the civil servants (according to data from the Register of the administrative structures)

In 2004, in 52 announcements for expert positions and 61 announcements for managerial positions only one method for the competitions was specified.

Law 141

Economy 111

Plant growing 50

Cattle breeding 36

Veterinary medicine/architecture, construction and geodesy 34

Chemical sciences 25

Informatics and computer science/ecology 24

Chemical technologies/administration and management 18

diagram IV-9. The most preferred areas of university education in announcing competitions for positions to be occupied by applicants to be employed for a first time in the civil service

In 2004, a total of 2 147 positions have been occupied by the competition procedure, of which 1 922 for civil servants and 225 under the Labour Code. The employed 1 922 civil servants are 11 more than the civil servants employed by a competition procedure in the year 2003. This fact confirms the successful start of the compulsory competition for entry into the public administration. The claims related to the competition procedure or the classification are 107, out of which 16 claims have been remedied by the respective employment authorities and the competition procedure has been terminated. The reports show that 231 competition procedures have ended without classification (Article 38 of the Regulation for the competitions for the civil servants). Quite impressive is the result reported by the municipal administrations for competitions that have ended without classification. They represent 84% of the competitions that did not come to an end at territorial level and 25% of the total number of competitions that did not come to an end. This fact is quite worrying in relation with the professionalism and the performance of the applicants for positions in the municipal administrations. A total of 752 employees have been promoted to higher positions in the administration through the realization of the procedure for competitive selection and through adherence to Articles 34 – 36 of the Regulation for the conditions and the order for performance appraisal of the employees in the public administration. This procedure has been applied more frequently at central level (for 75% of all employments at higher position). At territorial level this percentage is 25%. One

52 2004 Annual Report for the Public Administration should also take into account the circumstance that after the realization of the competitive selection another vacant position is left which has to be filled in again by a competition. The application of the competition procedure for positions under the Labour Code is unsatisfactory. The number of the competitions held in 2004 is only 225 which is with 144 competitions less than in 2003. 25% of the positions under the Labour Code have been occupied not with a competition but by other procedures – according to documents, interview, discussions, etc. The requirement regulated in the Unified classifier for the positions in the administration for recruitment as civil servants of experts with analytical and/or control functions is yet not fully applied. This is indicated by the number of 9 279 employees of the administration occupying such expert positions but still working under the Labour Code. 7 453 employees or 80% work at central level (the Tax administration, the Ministry of Education and Science, the Ministry of the Regional Development and Public works, etc.) and 1 826 employees or 20% at territorial level. From those working in the administration only 3,5% have the normative grounds (§2, p.1 of the transitional and final provisions of the CoM Decree Nr. 47/2004) for a definite period to continue to work under the Labour Code, while for the employees at territorial level this percentage is 6,5%. It is mainly the municipal administrations that still benefit from the right regulated in article 3(5) of the Regulation for the application of the Unified classifier of the positions in the administration some experts with analytical and/or control functions to continue to work under the Labour Code - 66,76% of the expert positions under the Labour Code at territorial level. In the year 2004, 1 623 employees have acquired the right to retirement. 987 employees out of them have retired, which is with 45 employees more than in 2003. 636 employes have continued to work in the administration which is with 320 less than in 2003. It is reported that the right to retirement in the year 2005 will be acquired by a total number of 1 195 employees, 510 of which on civil servants positions and 685 under the Labour Code. In the year 2004, 2 767 employees from the public administration have been on a sick-leave for more than one month without interruption, in order to restore their capabilities to work. This makes 3,33% of the total number of the really employed in the administration. 87% of the employees who have been on a sick leave have been on expert and supporting positions and 13% at managerial positions. From the managers that have been on a sick leave 43% have been women, while among the experts and supporting staff who have been on a sick leave the women are 71%. In accordance with the reported data the average monthly gross salary (the basic monthly salary plus a percentage for years of service) of the employees in the public administration amounts to 454 BGL. For the civil servants it amounts to 536 BGL, while for the employees under the Labour Code – 363 BGL. The low salaries of the employees in the public administration do not correspond to the functions they perform and the responsibilities they have. A total of 2 477 service official legal relationships have been terminated in the previous year. 1 119 official legal relationships have been terminated on general grounds (Article 103(1) of the Civil Servant’s Act), out of which 927 in the central administration and 192 in the territorial administration. 1 083 official service relationships have been terminated upon mutual consent, and because of elapse of the period for employment of the civil servant – 36 service relationships. On the part of the civil servant 244 service relationships have been unilaterally terminated, 203 of which in the central administration and 41 in the territorial administration (Article 105 of the Civil Servant’s Act). The service relationships terminated on these grounds represent 10% of all terminated service relationships in the previous year, the reason for which most often is the that the civil servants are not satisfied with the low remuneration which does not correspond to the their functions and responsibilities. In the year 2004, a total of 927 service relationships have been terminated unilaterally by the employment body with notification (Article 106 of the Civil Servant’s Act), out of which 36 with directors, 66 with heads of departments and 36 with heads of sectors. Because of the closing down of the respective administration 17 service relationships have been terminated, because of cutting down of the position 525, because of retirement 385.

2004 Annual Report for the Public Administration 53

A total of 89 service relationships are terminated unilaterally by the employment body without notification (Article 107 of the Civil Servant’s Act), out of which 15 with directors, 15 with heads of departments, and 3 with heads of sectors. 56 civil servants have been disciplinary dismissed, with 3 civil servants the service relationship has been terminated because of failure to keep to the obligation for notification under Article 27 of the Civil Servant’s Act (“When during the implementation of the official legal relation for the civil servant occur some of the grounds for inadmissibility of art. 7, para 2 of this law he shall be obliged in 7 days term after the occurrence of this ground to notify the body of appointment about the incompatibility with the implemented service”). 15 service relationships have been terminated because of non-observance of the absolute bans and the requirements for employment (Article 7 of the Civil Servant’s Act) and the violation exists also to the moment of termination of the service relationship. The service relationships with 15 civil servants have been terminated because of lowest possible performance appraisal. In 2004, it was reported that 98 service relationships have been terminated by the initiative of the employment body against a prearranged compensation (Article 107a of the Civil Servant’s Act), which represents 3,96% of the total number of terminated service relationships during the year. The above mentioned provision is most often used by the municipal administrations, where 53 service relationships have been terminated under this provision, in the regional administrations their number is 11, and in the central administration it is only just 34. The number of the labour relationships terminated on the part of the employer is 1 896, being with 334 more than in 2003. The service relationships terminated in 2004 are with 581more than the terminated labour relationships.

IV.2. Age and educational structure6 The employees aged between 40 and 50 represent the highest percentage of employees in the public administration (31%), followed by the employees aged between 30 and 40 (29,5%). Lowest is the percentage of the employees aged up to 30 in the municipal administration (11%), followed by the central administration (14%), and the highest percentage of employees of this age group are working in the regional administration (23%). Least is the percentage of the employees over the age of 60 (2,5%).

central administration regional administrations municipal administrations 32,5% 32,0%

25,0% 22,7% 23,0% 23,4% 19,0% 16,5% 17,0% 14,0% 9,5% 11,0%

up to 30 years of age in up to 30 years of age in over 50 years of age in over 50 years of age in 2003 2004 2003 2004

diagram IV-10. Ratio of the employees in the public administration by age groups

6 All percentage ratios are calculated versus the total number of personnel in the central and territorial administration

54 2004 Annual Report for the Public Administration In the administrative structures at central level the number of employees at managerial positions is 6 872. Highest is the number of managers aged from 40 to 50 – 2 458 (36%), followed by the managers aged from 50 to 60 - 2054 (30%), 25,5% are the managers aged from 30 to 40. The young managers aged up to 30 are 4,5%, which is almost equal to the percentage of the managers aged over 60 - 4%. In the regional administration as well highest is the percentage of the managers aged between 40 and 50 (43%), followed by the managers aged between 30 and 40 (27%). The lowest is the percentage of managers over 60 - 4%. The total number of the employees at managerial positions in the municipal administrations is 4 878. 35% out of them are aged from 50 to 60, 33% are aged between 40 and 50, 21% are aged between 30 and 40 години, 7% are aged over 60 and 4% are aged up to 30.

up to 30 years of age 16,0% 12,5% over 50 years of age 12,0% 11,0%

8,3% 7,0% 5,7% 4,5% 3,9% 3,4% 2,7% 1,2% 1,6% 1,3% 0,8% 1,0% 0,4% 0,5%

central central central regional regional regional municipal municipal municipal administration administration administration administrations administrations administrations administrations administrations administrations 2002 2003 2004 2002 2003 2004 2002 2003 2004 diagram IV-11. Ratio of the employees at managerial positions in the administration by age groups versus the total number of employees

Among the employees on expert positions in the administration at central level, highest is the percentage of the employees aged between 30 and 40 (32%), followed by the employees aged between 40 and 50 - 29%. The lowest is the percentage of the employees at expert positions aged over 60 (1,7 %). The employees at expert positions aged up to 30 are 16%. The highest number of employees aged up to 30 is in the Ministry of Environment and Waters (34% of the total number of employees in the Ministry). The highest is the percentage of employees aged over 60 in the Institute for the tobacco and the tobacco products (13% of the total number of personnel in the Institute). Of the employees at expert positions in the regional administrations, highest is the percentage of the employees aged between 30 and 40 – 33%. The lowest percentage is for the employees at expert positions over 60 (1%). The highest percentage of employees aged up to 30 is in the regional administration Haskovo (40% of the total number of employees in the regional administration). The highest percentage of employees aged over 60 is in the regional administration Sliven (9% of the total number of employees in the regional administration). In the municipal administrations the highest percentage of employees at expert positions are aged between 40 and 50 (33 %), and the lowest for the experts aged over 60 (2%). The highest percentage of employees aged up to 30 is in municipal administration Ruen (26% of the total number of employees). The highest percentage of employees aged over 60 is in the municipal administration Nevestino (31% of the total number of its staff). In the year 2004, the number of employees in the public administration with university education in general has been increased (63,3%) compared to 2003 (61,3%). The highest percentage of employees with university education is in the regional administrations (83,5%), followed by the employees in the central administration (65,4%) and the lowest percentage is in the municipal administrations (47,4%). The highest percentage of the employees with secondary education is in the municipal administrations (50,3%), followed by the central administration (30,7%), and the lowest percentage of the employees is in the regional administration (16,4%). Compared to the year 2003 there is a 2004 Annual Report for the Public Administration 55 reduction of the percentage of the employees with secondary education at all levels of the administration.

university secondary primary

year 2004 63,3% 35,0% 1,7%

year 2003 61,3% 36,8% 1,9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

diagram IV-12. Educational background of the employees in the public administration

The employees with master degree are 52% of all the employees with university education in the public administration. Compared to 2003 the number of employees with bachelor degree has increased from 5.9% to 7,7% in 2004, and with specialist degree from 3.0% to 3.7%. This makes us to conclude that a large number of the employees have advanced in their educational degree.

central administration regional administrations municipal administrations

master 2004 56,3% 75,4% 36,2% master 2003 56,8% 74,6% 34,5% master 2002 60,4% 72,7% 34,5% bachelor 2004 8,4% 6,0% 5,6% bachelor 2003 6,0% 4,7% 4,6% bachelor 2002 3,4% 6,3% 3,9% specialist 2004 3,1% 2,1% 5,6% specialist 2003 2,6% 3,3% 4,5% specialist 2002 2,5% 1,9% 3,8%

0% 20% 40% 60% 80% 100%

diagram IV-13. Educational degree of the employees in the public administration

Highest is the percentage of the employees with university education in the field of the social, economic and law sciences (48,7%), out of them the highest number is of employees at central level who have graduated in economy (42,3%), followed by the municipal administrations (33,9%) and the regional administrations (30,1%). It has to be noted that the highest number of graduates in law is in the regional administrations (19,1%), followed by the central administration (7,1%) and the local administrations (5,5%). High is the percentage of the university graduates in technical sciences (21,2%), and the lowest is of the university graduates in arts (0,3%). The university graduates in pedagogic sciences are 5,1% of the employees in the public administration and the highest number of them is in the municipal administrations (10,6%). The university graduates in the area of the humanitarian sciences are 7,2% of all employees, and 5,7% in the field of natural sciences, mathematics and physics.

56 2004 Annual Report for the Public Administration central administration regional administrations municipal administrations

safety and defence 1,3% 1,6% 1,1%

arts 0,2% 0,5% 0,6%

health care and sport 1,5% 1,1% 2,3%

agrarian sciences and veterinary medicine 9,7% 2,1% 4,9%

technical sciences 19,6% 30,6% 27,8%

natural sciences, mathematics and informatics 5,8% 3,5% 5,3%

social, economic and law sciences 50,3% 49,0% 41,1%

humanitarian sciences 7,5% 5,8% 6,2%

pedagogic sciences 4,0% 5,8% 10,6%

diagram IV-14. University education of the employees in the different specialty areas for 2004

IV.3. Attestation of the employees through performance appraisal The system for attestation is an effective tool for the evaluation of the professional level and the competency of the employees in the public administration. The application of the Regulation for the conditions and the order for attestation of the employees in the public administrations started on 1 January 2003. The system for performance appraisal aims to stimulate the employees to be more accountable, to contribute for specifying and clarifying of the tasks, for more predictable results, for objectivity of the criteria for appraisal. The system helps to identify the training needs of the employees, to identify the employees with potential for future development and to relate the performance to the remuneration of the employees. The reports announce that the system of performance appraisal in general is performing better and better. The period of appraisal is one year and passes through three basic stages – coordination of a work plan with the individual goals of every employee, an interim meeting held in the middle of the year and a final meeting held at the end of the appraisal period, at which the executive gives his/her appraisal for the employee. In accordance with the Regulation for the conditions and the order for the attestation of the employees in the public administration, the final meeting is held in the period between 1 and 30 November each year. Of a total of 462 administrative structures that have presented reports, 420 state to have held the three stages of the appraisal – the coordination of the working plans, the interim and the final meetings. In 42 structures only some of the stages have been held. In practice 91% of the administrative structures have applied the Regulation. From the 184 structures at central level that have sent reports, 180 structures has held the three stages of the appraisal process, which makes 97% and this is quite a satisfactory result. The remaining 3% of them have pointed out the fact of being newly created at the end of 2004, or restructured as the reason for not having held the three stages (The Agency for the entries, the Executive agency for transplantations). At territorial level 89% of the structures have held the three stages of the appraisal process. It should be noted that the municipal administrations point to the fact that there are no civil servants working there as a reason for not having held the three stages which speaks for lack of knowledge about the law (Sofia municipality, municipality Kjustendil, etc.).

2004 Annual Report for the Public Administration 57

Of a total of 462 administrative structures that have presented reports, 404 have held interim meetings between the appraised employees and the appraising executive, and 406 have held the final meetings at the end of 2004. This shows that 87,7% of the structures, that have presented their annual reports, have held both the interim and the final meetings. Structural, organizational changes, change of the appraising executives, an appraisal process that has not started yet are among the reasons pointed out by the administrations which have not held both stages of the appraisal process. 59 854 are the employees who have received the annual evaluation at the end of 2004, and this makes 77% of the total number of employees in the public administration. At central level 86% of the employees have received annual evaluation, while at territorial level – 63%. As a positive example for the application of the appraisal system we could point to the administrations wherein 100% of the employees have been appraised – the Agency for foreign assistance, the State commission for the commodity exchange and the market-places, the Executive agency for the environment, the Executive agency for the soil resources, the National service for the crop and the fodder, the regional administration Vidin, the municipal administrations Slivnitza, Stara Zagora, Ljaskovetz, Slivo pole, etc.

evaluation 1 "exceptional performance"

0,4% evaluation 2 "the performance is above the requirements' 3,0% 4,1% 27,7% evaluation 3 "the performance staisfies the requirements"

evaluation 4 "the performance does not satisfy fully the requirements - imprvement is required" evaluation 5 "unacceptable performance" 48,0%

diagram IV-15. Percentage ratio of the employees with evaluations versus the total number of appraised employees in the administration

At central level the percentage distribution of the evaluations is as follows: evaluation 1 – 4,3%, evaluation 2 – 35,4%, evaluation 3 – 50,7%, evaluation 4 – 2,5% and evaluation 5 – 0,3%. At territorial level the percentage distribution of the evaluations is as follows: evaluation 1 – 4%, evaluation 2 – 22,6%, evaluation 3 – 46,3%, evaluation 4 – 3,3% and evaluation 5 – 0,4%. From a total of 462 structures that have presented reports, 376 point out that the system for appraisal has helped to identify the employees with a potential for future development. Most of them (210) are administrations at territorial level, where most obviously serious attention has been paid to this appraisal result. In 276 structures, 111 of which at central level and 165 territorial, the system has assisted to identify shortcomings in their organizational structure. This confirms again the usefulness of the application of the Regulation for the conditions and the order for attestation of the employees in the public administration. According to the reported data there were 497 appeals filed before the reviewing executives against the annual performance appraisal. 398 of them are at central level and 99 at territorial level. From the appeals filed 43,7% or 217 have been accepted and the reviewing executives have corrected the appraisal with one unit upwards. The accepted appeals and the corrected appraisals at central level are 46,5% of all appeals filed, and in the territorial - 32,3%. The percentages indicated are pointing to the importance of the reviewing executives in the administration at central level compared to that at territorial level in their role as an arbitrator and corrector in cases of lack of objectivity on the part of the appraising executives. Unfortunately, the reported data contain information for the violation of the normative provisions, related to the attestation of the employees in the administration. 54 appraisals have

58 2004 Annual Report for the Public Administration been corrected by the reviewing executives from high to lower ones, for which there is no legal possibility in the Regulation. This violation exists both at central level (26 lowered appraisals), at regional level (2 lowered appraisals) and at municipal level (26 lowered appraisals). Only 32 employees in the public administration have not signed the forms and their appraisals from the final meetings in 2004. 16 of them are at central level and 16 at territorial level. This is illustrative for the lack of knowledge for the normative framework by the appraised persons according to which the signature on the form is not an expression of agreement for the appraisal, it only ascertains that the meeting has been held. The probable disagreement is to be expressed in an order specified in the Regulation for written appeals filed before the reviewing executives.

IV.4. Additional remuneration for the employees The indicator “Allocation of additional remuneration in the administration in 2004” is based on the necessity of monitoring and analysis of: ■ the ways of allocation of the additional remuneration in the individual administrations throughout the country; ■ the level of additional remuneration reached in the individual administrations - additional financial incentives, allowances, benefits, etc. ■ establishment of the ratio between the basic and the additional remuneration with the aim to balance the additional remuneration through the limitation of the individual pay and increase of the basic pay. From the reports presented by the administrations at central and at territorial level we can conclude that the additional remuneration in the administration are allocated in compliance with approved internal rules for the salary. In this rules among the indicators used during the allocation of the additional remuneration is the time worked, the quality of performance, the contribution for raising the image of the administration, collected additional revenues for the implementation of the state budget, or other indicators related to the specific nature of the individual administrations. For some administrations the functions and tasks of which are regulated in special laws (the Tax Procedural Law, The Law for the state internal financial control, the Law for the energy sector, the Law for environmental protection, etc.) the additional remuneration is explicitly regulated in these laws and the rules for its application are further developed in respective regulations and/or internal rules for the salary.

IV.5. Additional remuneration for the employees The indicator “Allocation of additional remuneration in the administration in 2004” is based on the necessity of monitoring and analysis of: ■ the ways of allocation of the additional remuneration in the individual administrations throughout the country; ■ analysis of the level of additional remuneration reached in the individual administrations - additional financial incentives, allowances, benefits, etc. ■ establishment of the ratio between the basic and the additional remuneration with the aim to balance the additional remuneration through the limitation of the individual pay and increase of the basic pay. From the reports presented by the administrations at central and at territorial level we can conclude that the additional remuneration in the administration is allocated in compliance with approved internal rules for the salary. In this rules among the indicators used during the allocation of the additional remuneration is the time worked, the quality of performance, the contribution for raising the image of the administration, collected additional revenues for the implementation of the state budget, or other indicators related to the specific nature of the individual administrations. For some administrations the functions and tasks of which are regulated in special laws (the Tax Procedural Law, The Law for the state internal financial control, the Law for the energy sector, the Law for environmental protection, etc.) the additional remuneration is explicitly regulated in these

2004 Annual Report for the Public Administration 59 laws and the rules for its application are further developed in respective regulations and/or internal rules for the salary. The analysis of the data reported showed that the additional remuneration is allocated in compliance with the performance results in 30,59% of the administrations, equally to all employees - in 5,42%, according to the individual monthly remuneration – in 42,95 % and in another way – in 21,04%.

21,04% 30,59% According to the performance results Equally to all employees In accordance with the individual monthly remuneration 5,42% In another way 42,95%

diagramIV-16. Allocation of the additional remuneration in the administration ( including additional financial incentives, allowances, benefits, etc.)

According to the approach of allocation of the additional remuneration in the different types of administration the situation is as follows: Approach of allocation Type of administration Number According to the performance results 141 Administration at central level 79 Administrative structures established with a law 30 Administrations of state commissions 2 State agencies 4 Executive agencies 27 Ministries 10 Territorial administration 62 Regional administrations 10 Municipal administrations 41 Regions of municipalities 11

Equally to all employees 25

Administration at central level 0 Administrative structures established with a law 0 Administrations of state commissions 0 State agencies 0 Executive agencies 0 Ministries 0 Territorial administration 25 Regional administrations 0

Municipal administrations 25 Regions of municipalities 0

According to the individual monthly remuneration 198 Administration at central level 62 Administrative structures established with CoM Decree 6 Administrative structures established with a law 47 Administrations of state commissions 1 State agencies 1

60 2004 Annual Report for the Public Administration Executive agencies 5 Ministries 2 Territorial administration 136 Regional administrations 13

Municipal administrations 114 Regions of municipalities 9

In another way 97 Administration at central level 43

Administrative structures established with CoM Decree 2 Administrative structures established with a law 31 Administrations of state commissions 1 State agencies 2 Executive agencies 3 Ministries 4 Territorial administration 54 Regional administrations 5

Municipal administrations 41 Regions of municipalities 8

tableIV.5-1. Allocation of the additional remuneration in the administration

The analysis of the approach of allocation of the additional remuneration in the different types of administration gives the following picture:

administration at central level regional administrations municipal administrations 100% 0,0% 33,7% 80% 42,9% 23,4%

60% 46,4% 17,9% 11,4% 40% 35,7%

20% 51,6% 18,5% 18,5% 0% according to the according to the in another way equally to all employees performance results individual monthly salary

diagramIV-17.Allocation of the additional remuneration in the administration

The reports show that the most widely distributed way for allocation of the additional remuneration in the municipal administrations is according to the individual salary. This gives grounds for concluding that at municipal level again this approach is considered relatively objective and preferred. The approach of allocation equally among all employees indicates that some structures keep to the established traditional approaches, and is also related to its lower rate in the municipal administrations. For a first time this year a report was made for the percentage ratio of the total amount of the additional remuneration paid (including the additional financial incentives, allowances, benefits, etc.) versus the total annual amount of the gross salary in the respective administrative structures. An investigation related to the amount of the additional remuneration in an absolute amount has not

2004 Annual Report for the Public Administration 61 been carried out. For the country in general, the percentage ratio of the total amount of the additional remuneration paid versus the total annual amount of the gross salary amounts to 16.23%. The average percentage ratio in the administration at central level is 20.99 % on the basis of 184 reports. The ratio for the different types of administrative structures is as follows: ■ ministries - an average of 21.93%; ■ state agencies - an average of 9.69%; ■ executive agencies - an average of 15.47%; ■ administrative structures established with a law – an average of 24.30%; ■ administrative structures established with CoM decree – an average of 14.25%; ■ state commissions - an average of 9.48%. In the different structures at central there is a serious difference in the reported ratio of the total amount of additional remuneration versus the total annual amount of the gross salary: 76 (i.e. 41.3%) of the structures at central level point between 0% and 10% ratio of the total amount of additional remuneration versus the total annual amount of the gross salary; ■ 45 (i.e. 24,5%) structures have a ratio between 10 and 21%; ■ 36 (19,6%) structures at central level report for a percentage ration between 21 and 50%; ■ 16 (i.e. 8,7%) have a ratio of 50%; ■ 5 (i.e. 2,6%) structures at central level report a percentage ratio of 50 to 70%; ■ 2 (i.e. 1,1%) structures point to a percentage ratio of 70 to 100% and ■ 4 (i.e. 2,2%) structures at central level report 100% and over 100% of the total amount of additional remuneration paid versus the total annual gross salary. These are the National agency for evaluation and accreditation, the Regional education inspectorate - Burgas, Ministry of Finance and the Agency for nuclear regulation, and the highest percentage ratio - 168% has been reported in the Agency for nuclear regulation.

100 and over 100% 2,2%

from 70 to 100% 1,1%

from 50 to 70% 2,6%

50% 8,7%

from 21 to 50% 19,6%

from 10 to 21% 24,5%

from 0 to 10% 41,3%

diagram IV-18. Percentage ratio of the total amount of the additional remuneration paid (including additional financial incentives, allowances, benefits, etc.) versus the total annual amount of the gross salary in the administration at central level

In the regional administrations the percentage ratio of the total amount of the additional remuneration paid (including additional financial incentives, allowances, benefits, etc.) versus the total annual amount of the gross salary amounts to an average of 17.93%. 18 (i.e. 64.3%) regional administrations, report that the ratio is up to 10%; 4 (i.e. 14.3%) regional administration report a ratio between 10 and 20%; in other 4 (i.e. 14.3%) administrations it is 50% and in two regional administrations (i.e.7.1%) it is over 50 %.

62 2004 Annual Report for the Public Administration over 50% 7,1%

50% 14,3%

from 10 to 20% 14,3% 64,3%

up to 10%

diagram IV-19. Percentage ratio of the total amount of the additional remuneration paid (including additional financial incentives, allowances, benefits, etc.) versus the total annual amount of the gross salary in the regional administrations

An average ratio of 11,89% is pointed out for the municipal administrations, and for regions of municipalities - it is 17,47%. There are differences between the regional administrations as well and the majority of them report that they are within the range of up to 10%, and only 28 municipalities point to a percentage ratio of 50% and over 50%. From the analysis made on the percentage ratio of the total amount of additional remuneration versus the total annual amount of the gross salary the following conclusions can be made: ■ Because of the low gross salaries in the administration in general the scheme for the additional remuneration (additional financial incentives, allowances, benefits, etc.) is being applied in order to keep the staff remain in the administration. ■ The averaged ratio between the total amount of the additional remuneration paid (including the additional financial incentives, allowances, benefits, etc.) versus the annual amount of the gross salary for the administration at central level is 20.99%, for the regional administration - 17,93 %, for the municipal administration - 11.89%, and for the regions of municipalities - 17,47%. ■ In the individual administrative structures there is a serious difference in the ratio of the total amount of the additional remuneration paid versus the total annual amount of gross salary. In general, for 65 out of 463 administrative structures (i.e. more than 1/7 of the administrations) the additional financial incentive is 50% and more than 50% of the basic remuneration. ■ For the administration at central level the ratio of the total amount of the additional remuneration paid versus the total annual amount of gross salary is in the range of 0% and 168%. ■ Taking into account that the reports are presenting averaged values, we can imagine that a serious difference exists in the administrative structures themselves. ■ There is a misbalance between the basic and additional remuneration in the administration throughout the country, and there are structures where the additional remuneration exceeds the basic one. ■ The tendency has been established continuously and it refers to key structures as well, and that is why in order not to allow for negative consequences – flow of personnel, lack of sufficient motivation, etc., the limiting of the individual annual amount of the additional remunerations must be accompanied with an increase of the individual salary in the administration throughout the country.

IV.6. Training In 2004 the realization of the strategic goal for the continuous improvement of the professional qualification of the employees continued. 48% of the administrative structures have absorbed 100% of the financial resources allocated to them for the specialized training of the employees out of which 109 structures at central level (the Ministry of Health, the Ministry of Culture, the Agency for foreign assistance, the National service for agricultural advice, the regional health centres, etc.), 22 regional administrations and 90 municipal administrations (Boljarovo, Mizia,

2004 Annual Report for the Public Administration 63

Ruzhinzi, Targavoshte, Chepelare, etc.). Compared to the year 2003 this percentage has been increased with 23%. Further to the training funds specially allocated, 44% of the structures have absorbed also the funds for training planned in their budgets. The number of administrations that have absorbed less than 30% of the funds is 26, of which 5 structures at central level (Ministry of Environment and Waters – 20%, the Executive agency for the vine and the wine – 13%, the Bulgarian-German centre for vocational training – Stara Zagora – 0%, the Basin directorate Blagoevgrad – 3%, the Regional education inspectorate Haskovo - 25%) and 21 municipal administrations (Zlataritza – 7%, Kresna – 5%, Simeonovgrad – 20%, etc.). The total number of employees who have undergone training in 2004 is 29 797, out of which 25 307 (37%)7 in the central administration and 4 490 (23%) in the territorial administration. As compared to 2003, this number has increased with 8% for the central administration and with 11% for the territorial administration.

compulsory training 14 624 specialized training

16 323

10 683 2529 1 842 1961 1 444 549 central administration central administration territorial administration territorial administration 2003 2004 2003 2004

diagram IV-20. Ratio of the employees who have passed compulsory and specialized training

10 683 employees of the central administration and 1 961 employees of the territorial administration underwent compulsory training in 2004. Of these, 1 074 at managerial positions and 9 609 at expert positions for the central administration, and 560 at managerial positions and 1 401 at expert positions in the territorial administration. 2 547 employees of the employees that have undergone specialized training have been trained in the Institute for Public Administration and European Integration along the programs for newcomers, newly appointed managers, integration of Bulgaria to the EU, and prevention of corruption. The largest number of employees have undergone narrowly specialized training – 14 353 (13 107 at central level and 1 246 at territorial level). In the central administration the second place is occupied by training in information technology – 3 068 employees, and at territorial level – the training in legal regulations and the organization of administrative activities – 975 employees. The lowest number of employees in the central administration have undergone training in financial management – 1 102, while for territorial administrations the bottom position is occupied by foreign language training – 107 employees, as it was established in 2003 as well. According to a survey of the National Center for Public Opinion Studies (NZIOM) 44,6% of the employees consider that the training opportunities they were given match their desires. 46,7% state that the possibility for improvement of their qualification presented by the administration matches their desires partially. In 2004, 35 676 employees underwent courses for specialized training at the Institute for Public Administration and European Integration which is with 35% more than in 2003. 227 employees have visited courses organized by TAIEX (the Ministry of Environment and Waters – 22, the Executive agency “Railway administration – 15, the National veterinary-medical service – 45 and other structures mainly at central level). The largest number is the number of employees who have undergone training at other training institutions - 9,986. The training institutions most often mentioned are: Bulgarian universities (New Bulgarian University, the Sofia University “Kliment 64 2004 Annual Report for the Public Administration Ohrodski”), the Foundation for Local Government Reform, Open Society Foundation, foreign universities, Higher Academy “G. Rakovski”, non-governmental organizations, private companies, training centres, internal training courses, etc.

narrow specialized training 14353 foreign languages 1683

information technology 3568

European integration 2466

financial management 1770

management skills and human resource management 2260

legal regulations and organization of the 3627 administrative activities

diagram IV-21. Number of employees who have passed specialized training in 2004

1 037 employees have undergone training that continued for more than 1 month, 998 of which at central level and 39 at territorial level. 553 contracts have been concluded with employees who have improved their professional qualification with funds of the administration, of which 382 contracts at central level and 171 at territorial level. 3 450 employees were awarded certificates by the Institute of Public Administration and European Integration. 306 employees were awarded certificates by Bulgarian universities, and 59 – by foreign universities. 1 898 employees were granted certificates by other training institutions (the European centre for science, education and culture, the Institute of the internal auditors of Bulgaria, Centre for training in foreign economy, the British Council, etc.). 356 employees at central level who have been trained have left the administration (the “Customs” Agency - 82, the State agency for metrology and technical surveillance - 16, the Agency for social assistance – 70, the Tax administration – 14, etc.), and 47 employees at territorial level (regional administration Jambol – 6, municipal administration Varna – 2, Ilinden region of Sofia municipality – 8, etc.). This represents only 1% of all the employees, who have undergone training in 2004, which compared to 2002 and 2003 is considerably less with 7% for the territorial administration and with 12% for the central administration, respectively.

central administration

territorial administration 100% 99% 99% 99%

95% 92% 90% 87% 87% 85%

80% 2002 2003 2004

diagram IV-22. Percentage of the employees who have passed training and continue to work for the administration

2004 Annual Report for the Public Administration 65

There are only four cases in 2004 where upon leaving the administration the employees have reimbursed the amount of money spent by the organization for their training (the Agency for state internal financial control, the Patent Office, the Executive agency for medicines, and the Executive agency “Maritime administration”.

66 2004 Annual Report for the Public Administration V. Administrative capacity for the application of the EU legislation

In its 2003 Regular Report on Bulgaria’s Progress towards European Union Accession, the European Commission has concluded the following: “Progress was made with the adoption of a programme and an action plan for the implementation of the Strategy for Modernization of the State Administration, which aim at consolidating the legal framework in this area. Sustained efforts will be necessary to further implement the public administration reform and to fulfill Bulgaria’s aim to have a qualified and efficient civil service in place in the medium term, to ensure the effective application and enforcement of the acquis when Bulgaria joins the Union. Bulgaria needs to continue to make efforts to develop sufficient administrative capacity to implement and enforce the acquis. As well as continuing horizontal reform of the public administration, it needs to focus in particular on developing the capacity to be part of the internal market and to apply the acquis in areas such as agriculture, environment and regional policy. Continued efforts are required to establish the necessary administrative capacity to ensure the sound and efficient management of EU funds.” With a view to implementing the recommendations from the 2003 Regular Report and the Roadmap for Bulgaria for creating a highly qualified and efficient state administration for the competent implementation of the acquis communautaire not only in the pre-accession period, but also as a full member of the European Union, in accordance with the information received from the working groups of the coordination mechanism in European integration the following major changes have been made in 2004 in the structures enforcing the harmonized legislation:

V.1. Basic activities related to the institution building and strengthening of the administrative capacity for the enforcement of the EU legislation

V.1.A. Establishing New Structures in Compliance with the acquis communautaire transposition In relation with the recommendation of the EC in the 2003 Regular Report and the Roadmap on Chapter 1 “Free movement of goods” concerning the necessity for strengthening the control of the public procurement through the establishment of an independent public procurement agency, based on the new Public Procurement Law the Public Procurement Agency has been established, the Rules of Procedure of which has been approved with CoM decree No. 56/2004 (State gazette, Nr. 24/2004). The emphasis in 2004 was on the recruitment of personnel and strengthening of the administrative capacity of the agency through training of the experts on issues related to rules, policies and practices of the European public procurement, process of granting of public procurement and programme budgeting. A Phare twinning light project BG02 IB-FI-04 TL “Strengthening of the administrative capacity of the Public Procurement Agency and improvement of the legislative framework in the field of public procurement” with which the measures for the strengthening of this structure will continue in compliance with the best EU practices.

V.1.B. Establishment of new units in existing administrative structures In relation to the application of a number of EU regulations and directives in the field of the food safety as well as in relation with a recommendation from the EC Regular Report in 2004 the Directorate “Food control and safety” has been established in the Ministry for Agriculture and Forests. The Directorate will develop and update the strategy of the Ministry for food safety and will develop programmes for its realization, will coordinate the implementation of the state policy in the

2004 Annual Report for the Public Administration 67 field of food safety by preparing the proposals forwarded by the Ministry to be discussed by the National council for food safety. The recruitment of experts in the Directorate is in progress. For the implementation of Regulations 2081/1992 and 2082/1992 and in accordance with a commitment undertaken with the document CONF-BG 56/02 in Chapter 7 “Agriculture” for the establishment of an authority for registration and control of geographic designations and foods with traditionally specific character under the Directorate “Integration policy” of the Ministry for Agriculture and Forests a special unit has been established for registration and control of agricultural products and foods with appellations of origin and traditionally specific character. A competition procedure has been organized for the selection of the personnel and the respective experts have been employed from the 1st August 2004. In relation with the implementation of Regulation 1788/2003 and with a commitment undertaken in the additional information to the negotiation position (CONF-BG 56/02) in Chapter 7 “Agriculture” until the end of 2004 to be established a register for the buyers of cow milk (stations for milk processing and collection) to Directorate “Cattle breeding” of the Ministry of Agriculture and Forests a new department has been established “Monitoring of the production of cow milk and realization of the milk quotas” in which a register is kept for the milk processors and milk collectors. In relation with the realization of a commitment undertaken with the document CONF-BG 56/02 in the same directorate there is established another new department “Qualification and classification of meat” which controls the respecting of the rules for qualification and classification of clinic carcasses of swine, cattle and small farm animals and participates in arbitration procedures for the settlement of disputes for qualification and classification of clinic carcasses, etc. In view of the application of Framework Directive 70/156 and 56 component directives and Framework Directive 2002/24 and 13 component directives amendments were made in the Rules of procedure of the Executive agency “Automobile administration” (State gazette, Nr. 53/2004) according to which a new Directorate “Road vehicles” is established with staff of 16 employees, which will work on issues, related to type approval of vehicles and trailers for them. For the application of Framework Directive 74/150/EEC and 23 specific directives to it from 1st May 2004 a new department “Type approval, market control and information services” within Directorate “Legal, information, administrative and financial service” has been established by amendments made in the Rules of procedure of the Control-Technical Inspection. Work is carried out for the strengthening of the administrative capacity through training of the employees in relation to the basic principles for the type approval of the new wheel tractors, systems and components for them and the launching of a Phare project BG020502.11 “Strengthening of the administrative capacity of the Control-Technical Inspection - Introduction of a system for market control for type approval of new wheel tractors”. In implementation of the requirements of Directive 94/56 for the establishment of an independent investigation authority for analysis of the incidents and accidents in the field of the air transport, which have been transposed in the Law for the amendment and supplement of the Law for the civil navigation (State gazette, Nr. 52/2004) within the Ministry of Transport and Communications a specialized unit “Investigation of the aviation accidents and serious incidents “ is already functioning. Within General Directorate “Civil air transport aviation” two new directorates have been established through restructuring, i.e. “Aviation safety” which will perform the actions necessary for the grant of licenses, permissions, certificates, testimonials and approvals and will execute control on the civil navigation and the navigation facilities and Directorate “Airport airnavigation provision, international and economic regulation” which will control the persons and the legal entities in relation with the safety and the economic aspects of the safety in the civil navigation, and will control the civil airports and the flying grounds, air navigation and other facilities related to the civil navigation and will organize and realize the activities of the Directorate General “Civil air transport aviation” related to the realization of the obligations stemming from the international contracts, to which is the Republic of Bulgaria is a party, and its membership in the organizations in the field of the civil navigation.

68 2004 Annual Report for the Public Administration With CoM decree Nr. 331/2004 the Executive agency “Port administration” has been closed down and its activity in relation to the port infrastructure is undertaken by the National Company “Ports“, established under Article 62, p. 3 of the Trade Law. With an order RD – 15 Nr.1189/21.06.2004 of the Minister of Health a sector “Qualification of the employees in the health sector and mutual recognition of diplomas, certificates and other documents for professional qualification in medical specialties issued in other countries” has been established within the department “European integration” of the Ministry of Health, which will keep a register of the persons who have acquired a specialty in the healthcare system, will plan and coordinate the activities for the postgraduate training within the healthcare system, will check the documents for medical education, issued by the Bulgarian medical schools and will issue the respective documents for their authenticity and will study and acknowledge documents for medical education and acquired capacity in medical specialties abroad and will prepare the respective documents for approval. In accordance with the Law for encouragement of the scientific research there is established a National Council for scientific research as an advisory body under the Minister of Education and Science and a Fund “Scientific Research” – a legal entity to encourage the scientific research and to act as a coordination mechanism for the national, regional and international programmes and projects. In compliance with a commitment under Chapter 17 “Science and scientific research” (document CONF-BG 8/00) for participation in the framework programmes of the European Communities in the field and in view of the new priorities and instruments for the realization of the Sixth framework programme and the preparation of the Seventh Framework programme enlargement was made in the year 2004 of the national contact network and the network of the national representatives in the programme committees for dissemination of information and consultations with the Bulgarian scientific society. The network covers more than 125 members and is a subject to additional distribution through the second level networks, built-up by every contact person. It covers all scientific organizations, universities, companies registered through the Bulgarian Trade and Industry Chamber, as well as small and medium enterprises. In relation with the necessity for strengthening the administrative capacity for efficient absorption of the EU funds, a new directorate “Coordination of educational international projects and programmes” with 10 experts has been created within the Ministry of Education and Science with CoM Decree No. 322/1.12.2004. The directorate will provide advisory and methodological assistance of schools and supporting units in the process of development of projects and will keep an information reference system and data base for programmes and projects financed by the EU, the World Bank and other donors. The Directorate will start functioning in 2005. The process of reforms in the Tax administration and the institution building of the National revenue agency continued in 2004. The basic aim targeted with the restructuring is the optimization of the structure of the Tax administration through the separation of the administering of the local and the state taxes as well as its preparation for the integration with the National insurance institute for the collection. In line with the process for restructuring of the tax administration, there goes the process for the setting up of a function “Collection” of the National insurance institute. A process of restructuring of all the territorial tax directorates and their subunits has started in 2004 taking into account the results and the experience from the development of the pilot project in Burgas, that has started in July 2003. With an Order ZMF-631/28.06.2004 the changes in the model functional structure of the tax administration have been approved and they will be effected step-by-step for each tax administration. This process has been successfully realized in accordance with the approved timetable and in 2005 the restructuring of the last two Territorial tax directorates will be done. With CoM Decision Nr. 409/20.06.2002 the General tax directorate has been entitled to develop, implement and apply the Intrastat system in Bulgaria. For the implementation of this activity, on the basis of Order Nr. ZMF-1454/27.12.2004 of the Minister of Finance a new department “Intrastat” has been created in the General tax directorate, which has to provide for the realization and the application in the period 2005 – 2006 of the necessary achievements of legal, methodological, operational and technologic character for the future operation of the Intrastat

2004 Annual Report for the Public Administration 69 system. The functions of the department will gradually change and it will turn from a development unit into an exploitation unit, i.e. in an operational department of the future National revenue agency. A National council for gender equality under the Council of Ministers has been created with CoM Decree Nr. 313/17.11.2004 with the participation of representatives of the social partners and the non-governmental organizations in the field of development and coordination of the policy for gender equality in all spheres of the economic, political and public life of the country. A department “Gender equality” within the Directorate “Labour market policy” has been created in the Ministry of Labour and Social Policy with Order No. 145 of the Minister in implementation of Article 3 of the Amsterdam Treaty and the European Employment Strategy. The department will perform coordination and cooperation with international organizations in the field of gender equality, will coordinate the participation of Bulgaria in the Framework Programme of the EC for gender equality (2001-2005) and will develop guidance and methodological framework for gender equality and a strategy for the integration of the gender equality approach in decision making. This department will provide administrative and technical support and will organize the work of the National council for gender equality under the Council of Ministers and the Advisory commission for gender equality under the Minister of Labour and Social Policy. The head of the department and the experts Based on the recommendation in the EC 2003 Regular Report for strengthening of the administrative capacity for the effective application of acquis of the respective authorities, including the General labour inspection, a new directorate “Human resource management” has been created in 2004 within the Executive agency “General labour inspection” which has control functions. The staff of inspectors has been increased with 40 positions. Specialized training was organized for the 35 newly appointed state inspectors in the “Legal” directorate in the agency. For the implementation of the Law for protection against discrimination and assistance for the functioning of the Commission for protection against discrimination a new directorate “Ethnical and demographic issues” has been created within the administration of the Council of Ministers. In relation with the transposition of Directive 68/414/ЕЕС in the Law for the obligatory reserves of petroleum and petroleum products the State agency “State reserve and war-time stock” is entitled to execute general surveillance on the stored obligatory reserves of petroleum and petroleum products and on the licensed depositaries of petroleum and petroleum products. With the newly adopted Rules of procedure of the State agency “State reserve and war-time stock” (State gazette, Nr. 8/2004) a new directorate “Management of the obligatory reserves of petroleum and petroleum products” has been created which will have the functions related to the maintenance of the 30-day state reserves of petroleum and petroleum products, management of the obligatory reserves of petroleum and petroleum products through control on their storage and use, development and keeping of the registers of the warehouses for petroleum and petroleum products, of the produces and importers, development and approval of the technical requirements and the requirements for safety and exploitation of the warehouses, definition and calculation of the daily and annual average consumption of petroleum products in the country and the respective level of the reserves. In relation with the application of Directive 93/7 for reversion of cultural objects that have illegally left the territory of an EU member state an Inspectorate for the cultural heritage started functioning from April 2004 within the National centre for museums, galleries and arts. The Inspectorate works successfully and holds permanent contacts with the National directorate “Police” – economic division. Two joint operations have been carried out related to the protection of the cultural heritage. Regular working meetings are also held. On the basis of signals received six individual inspections have been carried out in 5 museums all over the country. Other 11 signals for violations have been processed, the respective instruction letters have been sent to responsible officials. Representatives of the Inspectorate have participated in the drafting of the final version of the Regulation for importation and temporary exportation of monuments of culture, drafted by the Working group of the Ministry of Culture and “Customs” Agency. Preparation is under way for the setting up of an electronic archive to serve the temporary exportation of movable monuments of culture.

70 2004 Annual Report for the Public Administration In 2004 the “Black sea border coordination information centre” has been established as a permanent body for provision of the interaction with the National border coordination centres of the Black sea region countries for multilateral and bilateral exchange on the problems of the fight with the smuggling, illegal migration, illegal trafficking of weapons, drugs, etc. The decision for the establishment of the Centre has been made with the signing of an agreement at the Annual conference of the executives of the services for coast guard in the countries of the Black sea region, held in October 2003. The exchange of information is made in accordance with the Rules of procedure for the activities of the international coordination and communication centre approved by the Conference. The centre has been set-up with the consultancy assistance of German experts under the running twinning Phare project BG 02- IB/JH/06, and use is made of the experience of the Baltic region countries. In relation with the application of the aquis for the protection of the euro from counterfeiting a National operational and coordination centre for preventing counterfeiting of currency has been established in the Ministry of Interior in February 2004 with an order of the Minister of Interior. In compliance with commitments under Chapter 24 “Justice and home affairs” and with the Law for amendments and supplement to the Law for the Ministry of Interior approved on 11 November 2003 (State gazette, Nr, 103/2003) a new specialized directorate “Migration” has been created within the Ministry of Interior and it started to function on 26 February 2004. The functions and the activities of the directorate are regulated in detail in Article 121a of the Law for the Ministry of the Interior and correspond to the practice of the EU member states. The directorate is responsible to assist and control the activities of the regional units “Migration” of the regional directorates of interior and the Sofia directorate of interior. The number of staff of the Ministry has been increased with a CoM Decree dated 23 January 2004 and the funds necessary for this are planned in the budget of the Ministry of Interior. In realization of commitments undertaken during the process of negotiations a National information analytical unit for the narcotic substances has been created. The legal basis for the establishment of the unit is an Instruction of the Minister of Interior and the Minister of Finance dated 04.09.2003. The team consists of 10 employees from the National service for prevention of organized crime, the National service “Border police”, National service “Police”, the National investigation service, “Customs” Agency, the Agency for financial investigation, by way of secondment. The unit is functioning from 1.10.2004 and regular exchange of information is provided with the services and agencies represented in it. The employees have been trained in operational and strategic analysis and analytical techniques. A sector “Drugs” has been set-up in August 2004 in the Directorate of the National Police Service to organize and coordinate the activities of the police services for prevention of the distribution of drugs. An unit for coordination and strategic analysis in the Directorate “Coordination and information analytical activities” of the Ministry of Interior has been set up with an order of the minister of Interior with the main task to realize the interdepartamental coordination at an expert level as well as monitoring of the implementation of the Action Plan to the National Strategy for preventing drug use. The unit executes functions related to the collection and processing of materials from all state authorities related with the implementation of the Strategy and prepares 6- month and annual reports for the implementation of the Action Plan. For improvement of the mechanism for disclosing and preventing cases of corruption in the system of the Ministry of Interior, the composition of the Internal coordination council for preventing corruption in the Ministry of Interior has been enlarged with an order of the Minister from October 2004 which determines the strategy and the organization of work in this field. A specific, optimum model representing an unified system for preventing corruption in the Ministry of Interior has been established. An active approach has been introduced for receiving signals for corruptive behaviour which are investigated by experts and by employees nominated in the national and the territorial services of the ministry, the total number of whom is 126. They are more independent in their work and the methodological control and assistance as well as the organization of their activities is realized by the directorate “Inspectorate” of the ministry of Interior.

2004 Annual Report for the Public Administration 71

In 2004 the total number of the mobile customs groups grew to 15. And also in compliance with the commitments under Chapter 25 “Customs Union” the development of the Bulgarian customs integrated information system BIMIS continued. Modules “Decisions of the customs authorities” and “Customs obligation” and the subsystem “Risk analysis” of the module “Customs investigation” have been developed and on the 14.01.2005 the version BIMIS 2.2.3.1 has been implemented. In respect of the development of the customs laboratories a System for quality management in compliance with the requirements of the international standards ISO 9001:2000 (certificate Nr. 12614/29.11.2004) has been developed, approved and implemented. To strengthen the administrative capacity for the preparation for management of the EU funds with CoM Decree Nr. 206/2004 (State gazette, Nr.72/2004) changes were approved in the Rules of procedure of the Ministry of Regional Development and Public Works - increase in the number of staff of “Executive Agency Phare Programme”, “Executive Agency ISPA Programme - public works and sewerage systems, Directorate General “Regional development programming” and “Strategic planning of the regional policy”. Besides that a new deputy minister of the regional development with responsibilities for European integration has been appointed and a new directorate “European integration and coordination of the international programmes” has been established with a staff of 10 experts which will coordinate and observe the implementation of the commitments undertaken and will realize the coordination for the preparation and implementation of projects financed by the EU pre-accession funds. With an order of the Minister of the Regional Development and Public Works from February 2004 the Directorate “Programming and regional development” in the Ministry of the Regional Development and Public Works is made up of 3 departments - “Cross-Border Cooperation Programming”, “Economic and Social Cohesion Programming” and “Coordination and Monitoring” and an unit for the implementation of infrastructure projects consisting of 3 experts. With changes in the Rues of procedure of the Ministry of Finance (CoM Decree No. 18/2004 and CoM Decree No. 318/2004) new functions have been entrusted to the Directorate “Management of the EU Funds” which after accession will become Managing body of the Framework for Community Support and a Managing body of the Cohesion Fund. In this connection reorganization is made of departments “Phare funds management” and “ISPA funds management” within the directorate. In the first one a sector “Monitoring and evaluation” has been set up, while the latter has been renamed into “Strategic investments” with sectors “ISPA Funds Management”, “Public Private Partnerships” and “National Investments”. The new functions of the directorate are related to the development of an investment strategy and coordination of the implementation of the national investment policy in the budget supported sector, development and maintenance of a data base for the public investment of national importance, as well as for all local and foreign institutions and organizations engaged in the development, implementation and financing of such investment programmes, development of a strategy for the use of PPP in the country, etc. In June 2004 the Council of Ministers approved amendments in the Rules of Procedure of the Ministry of Economy in accordance with which the directorate “Pre-accession programmes and projects” is nominated to be the future Management body of Operational programme “Development of the competitiveness of the Bulgarian economy”. The total staff number of the directorate has been increased with 27 positions. The existing regional coordinators of the Ministry of Economy were employed at these positions. Among their functions is the realization of tasks related to the preparation for the management of the Operational programme and absorption of the EU Structural funds. With the approval of new Rules of procedure of the Agency for state internal financial control (State gazette, Nr.8/2004) the administrative structure of the Agency was changed. The changes have been made in compliance with the recommendations of the European Commission and SIGMA programme as well as in compliance with the priorities and the measures defined in the strategic documents of the Agency. A specialized directorate “Harmonization and methodology of the audit activities” has been created, the functions of which are directed towards development of standard methodologies and assistance in the harmonization of the audit activities. The existing three audit directorates have been merged into a single one, which has the functions for the organization and coordination of the audit activities, as well as functions for quality control. The department for control of the EU funds has been transferred into a directorate “Audit and

72 2004 Annual Report for the Public Administration certification of the EU funds” aimed at the strengthening of the capacity of the Agency for making audit of the EU funds and certification of the accounts of the functional structures disposing of the EU money under funds and programmes. In accordance with the Rules of procedure of the Agency the total number of employees in the directorate is 28. A transformation has been made of the territorial directorates of the Agency which from 28 have been reduced to 9 with the aim at optimizing their activities. With Decision Nr. 317/19.04.2004 the CoM has approved a draft of a Law for the setting up of a National agency for fiscal investigations and the project is presented to the National Assembly for discussions. For adequate realization of a commitment undertaken in the negotiation process under Chapter 27 “Common foreign and security policy” the position “political director” has been introduced in the administration of the Ministry of Foreign affairs with an order of the Minister of Foreign Affairs Nr. 95-00-256/11.08.2004. In 2004, aiming to achieve the criteria of EU there was made reorganization and enlargement/improvement of the functions of some structures within the Ministry of Justice, the Ministry of Labour and Social Policy, the Ministry of Economy, the Ministry of Regional development and Public works, the Ministry of Finance, the Ministry of Education and Science, the Employment Agency, etc.

V.1.C. Establishment of new structures for application of acquis outside the public administration Under the Law for the guaranteed claims a specialized fund “Guaranteed claims of the workers and employees” has been created in the National insurance institute (State gazette, Nr. 37/4.05.2004). The Law has been adopted in compliance with the commitments for transposing of Council Directive 80/987/EEC. The Fund is aimed to guarantee the payment of the claims of the workers and the employees in cases of insolvency of their employer. The managerial functions of the new structure are executed by a Supervisory board and by a Director employed by the Manager of the National insurance institute. The services related to the payments made by the fund to the persons entitled are provided by the territorial units of the Institute. The existing capacity of the Institute is used for realizing the activities of the fund. In implementation of Council directive Nr. 1338/28 June 2001 for specifying measures for the protection of the euro from counterfeit a National centre for analysis of the bank-notes and the coins has been set up in the Bulgarian national bank. In January 2004 the organizational structure of the National Audit Office has been improved by creating three sections for performance audit in compliance with the EC recommendations for strengthening this type of audit and sector VІІІ “Specific audits” has been transformed into a sector for performance audits. The basic functions of Sector VІІІ “Performance audit” are audits of the financial management and the implementation of programmes and projects financed by EU funds. Measures have been undertaken for strengthening the administrative capacity of the sectors and the territorial units of the National Audit Office through increasing the total number of their staff, raising the criteria for recruitment and continuous training of the personnel. The improved organizational structure of the National audit Office and the increased number of staff of the sectors and the territorial units have been approved with a decision of the National Audit Office, made at a meeting on 16.01.2004 with Protocol 1. The personnel of the National Audit Office has been increased with 20 employees as compared to 2003. 20 new auditors (10 in the sectors and 10 in the territorial units) and 14 interns auditors (four in the sectors and ten in the territorial units) are recruited. The new recruitments are made mainly for strengthening the capacity of the National Audit Office to audit the whole process of absorption of the EU funds, including the final users of the funds, and to make audits of programme and result-oriented budgets.

V.2. Strengthening of the administrative capacity for application of the harmonized legislation through training In 2004 more than 2 500 experts applying the harmonized legislation have passed specialized training. Most intensive has been the training on the different sector policies, as follows:

2004 Annual Report for the Public Administration 73

For the application of the legislation in the environmental protection – more than 800 employees trained, including not only experts from the Ministry of Environment and Waters but of other administrations as well the functions of which are related to this policy and representatives of private companies too. In the system of the Ministry of Agriculture and Forests – training has been organized for 5 employees for the directorate “Cattle breeding”, 28 employees of the regional directorates “Agriculture and forests” and 317 employees of the Councils for the agriculture and forests for the creation of the registers related to the introduction of the milk quotas. 270 experts in phytosanitary control have been trained, and 206 – in products for plant protection. Specialized training was carried out for 27 employees of the regional services for plant protection on the sampling methods for control of fertilizers and on the requirements of the Regulation for the packaging and labeling of the fertilizers. About 230 experts from the Hygiene-epidemiologic institute have been trained on the Law for the Foods. 257 experts at regional and municipal level, 59 representatives of the Agency for state internal financial control, the General Tax Directorate, the Agency for state receipts, Customs agency, and the Ministry of Finance, 96 judges and law experts from the public administration and the business have been trained for the application of the legislation on the state aids. There have been held 25 seminars along a Phare project for employees of the Ministry of Finance, the Commission of Protection of the Competition, and other competent institutions with a varying number of participants. Two 20day seminars have been held related to the activities of the Commission for the Protection of the Competition on subjects related to the checks on the spot and the improvement of the national legislation in compliance with the newly adopted acquis. More than 500 employees have been trained within the system of the Ministry of Interior on different sector policies. In the customs area – a total of 43 specialized training courses have been held on activities related to the customs investigation – prevention of smuggling and the illegal trafficking of narcotic substances and precursors, weapons for mass destruction and technologies with possible double use, intellectual and industrial property rights, etc. Within the system of the Agency for state internal financial control – training was organized on internal audit and pilot audits in the territorial units of the Agency in North and South Bulgaria, along two Phare twinning light projects. A total of 100 experts from the territorial units of the Agency on North and South Bulgaria have been trained in the internal audit seminars along the Phare project, while in the final seminar for summarizing the experience acquired – 180 auditors of the territorial units of the Agency. Four seminars have been held in the National Audit Office with the support of SIGMA programme for evaluation of the results from the pilot audits of the financial management, performance audits, audits of EU funds and audits of the municipal budgets, with the participation of 100 auditors, including auditors from the territorial units. Training for 12 auditors has been organized within the framework of a pilot audit made of the formation and the management of the national debt along Phare 2001 programme and 2 seminars under a twinning project that has started in November for the further development of the independent institution for external audit of the public sector along Phare 2003 project with the participation of 50 auditors.

74 2004 Annual Report for the Public Administration VI. Access to public information

The strategic goal in providing access to public information stipulated in the Law for access to public information, the Strategy for modernization of the public administration and the National Anti-Corruption Strategy is to strengthen to the maximum the guarantees for transparency and accountability of the public administration to the citizens and ensuring of their right to access to public information. This Section contains a report for the progress in achieving this goal. It gives a generalized analysis of the data submitted by the administrative structures with respect to the measures undertaken and the results achieved in connection with the organization of the provision of access to public information. Applications for access to public information have been filed in 268 of the administrative structures during 2004.

268 244 198

84

2001 2002 2003 2004

diagram VI-1. Number of the structures in which applications for access to public information have been filed

The total number of the registered applications that have been filed for access to public information for 2004 is 49 653. A large number of them have been oral requests – 38 356. A considerable part of the applications for access to public information have been registered in the National insurance institute (33 927), the Commission for financial surveillance (3 771), the National veterinary and medical service (2 719), the Executive agency for hydromeliorations (1 741), Executive agency “Roads” (996), Sofia municipality (452), the Executive agency for the soil resources (470), the Agency for financial investigation (335).

67 712

49 653 21 649 15 556

2001 2002 2003 2004

2004 Annual Report for the Public Administration 75

written applications

oral requests 11 297

38 356

34 668

5 641 6 687 2 657

from citizens from journalists from companies from NGOs

46603

613 2437

central administration regional administrations municipal administrations

diagram VI-2. Applications filed for access to public information

It is obvious from the number of decisions on the applications for access to public information for 2004 as compared to 2003 that the decisions have increased almost twice. Irrespective of the fact that the total number of filed applications for access to public information has been reduced with 27% this is an indication for a considerable improvement of the work of the administration in respect of the more effective application of the Law for access to public information and the satisfaction to the maximum of the requests for access.

50 000 44 869 40 000

30 000 21 286 20 000

10 000

0 2003 2004

42 584

467 1 818

central administration regional administrations municipal administrations

diagram VI-3. Number of decisions concerning the applications for access to public information

76 2004 Annual Report for the Public Administration There is an increase with 48% in 2004 as compared to 2003 of the refusals for access to public information.

469 395 315

2002 2003 2004

diagram VI-4. Number of refusals for access to public information

The largest number of refusals again (as in 2003) has been based on Article 37, paragraph 1, item 2 of the Law on Access to Public Information, i.e. where a third party's interests are affected and the third party has not granted its explicit written consent for the disclosure of the requested public information.

Art.37(1)1 of the Law Art.37(1)2 of the Law

224 Art.37(1)3 of the Law Art.13(2)1 of the Law Art.13(2)2 of the Law Other reasons

73 72 55 28 17

diagram VI-5. Reasons for refusal of access to public information7

A considerable part of the refusals to grant access to public information in 2004 is also in the municipality of Sofia 150 (3 times more than in 2003). Other administrative structures with a considerable number of refusals of access to public information are: Razgrad municipality – 25, the Financial Intelligence Agency – 22, the Ministry of Justice – 13. The total number of applications for access to public information which were left unheeded is 190. It is highest in regional administration Burgas – 103, Sofia munnicipality – 8, Regiona Lozenetz of Sofia municipality – 9, regional administration Sofia – 7, regional administration of Sofia region – 4, municipality Burgas - 4, regional administration Varna – 3, municipality Kocherinovo –3, municipality Montana - 3. The total number of appeals against the refusal to grant access to public information has increased twice as compared to 2003 - 72. Of these, the greatest number were filed in municipality

7 Art.37(1)1 of the Law – the requested information is classified information, representing service secret. Art.37(1)2 of the Law – the access is affecting a third party's interests and the third party has not granted its explicit written consent for the disclosure of the requested public information. Art.37(1)3 of the Law – the requested information has been submitted to the applicant during the previous 6 months. Art.13(2)1 of the Law – the access to service public information can be limited when it is related to the operational preparation of the acts of the authorities and has no individual meaning (opinions and recommendations prepared by or for the authority, comments and consultations). Art.13(2)2 of the Law – the access to service public information can be limited when it contains opinions and positions in relation to current or future negotiations, lead by the authority or on its behalf, as well as data related to them and the information has been prepared by the administrations of the respective authorities. 2004 Annual Report for the Public Administration 77

Razgrad – 24, municipality Cherven brjag – 6, Sofia municipality – 5, Ministry of Interior – 4, administration of the Council of Ministries – 4, regional administration Sofia – 4, Ministry of Economy – 3, region Lozenetz of Sofia municipality – 3.

72

38

2003 2004

diagram VI-6. Брой на жалбите срещу отказ за предоставяне на обществена информация

Training has been organized during the year for the employees of 258 administrative structures for the purpose of introducing and explaining the Law on Access to Public Information; (an increase with 100% as compared to 2003) with a total number of 866 employees trained (a reduction with 26% as compared to 2003). The public information most often requested is related to the following: ■ Specific information and copies of documents on the administration’s activities and management; ■ Issues related to legal acts and predominantly to secondary legislation; ■ Issues related to exercising administrative control, monitoring certain activities and results of inspections held; ■ Information from registers; ■ Information for acts of the municipal council, acts of the major and minutes of proceedings; ■ Information about territorial organization plans, issuance of acts for state and municipal property, institution of the right to build; ■ Statistical and demographic data; ■ Information about concluded contracts, tender procedures, competitions and other events; ■ Information regarding strategies, programmes, projects, development plans, etc.

78 2004 Annual Report for the Public Administration VII. Anticorruption measures

The strategic goals stipulated in the National Anti-Corruption Strategy approved with Decision Nr. 671/1.10.2001 are the creation of conditions for transparency and accountability of the public administration, regulation of clear and effective rules for interaction between the citizens and the employees in the public administration, establishment of civil control, increasing the transparency of the decision making at managerial level, establishment of such values as integrity and morale in the public relations, disclosure and prevention of corruptive practices, raising the public trust in the institutions. This Section presents a report on the progress for achieving these goals. It contains a generalized analysis of the data submitted by the administrative structures with respect to the measures undertaken, the organization established and the results achieved in connection with the anti-corruption efforts. A total of 32 structures have reported to have internal inspectorates created inside the structures. Besides in all ministries and state agencies such inspectorates are created in the Customs Agency, the Social Assistance Agency, the General Archive Division, the Tax administration, Executive agency “Roads”, Executive agency “Social activities of the Ministry of Defence”, the National revenues agency, the regional administration Vidin, the municipality Targovishte. This classification does not include the regional education inspectorates and the regional inspections for environment and waters, which have the statute of stand alone administrative structures. The total number of the employees in all inspectorates is 382, with 16% higher than that in 2003. The structures with the highest number of employees in their inspectorates are: the Tax administration – 91, the Social Assistance Agency – 48, the Ministry of Defence – 43, Customs Agency – 26, Ministry of Agriculture and Forests – 22, Ministry of Energy and Energy Resources – 14, Executive agency “Social activities of the Ministry of Defence” – 13, the Ministry of Regional Development and Public Works -10, the Ministry of Education and Science – 10, the Ministry of Health – 10. The inspectorates of the two territorial administrations that have indicated to have created such a structure are: regional administration Vidin with 5 employees, and municipal administration Targovishte with 9 employees. An accountability system for reporting to the executive of the administration is reported to exist in all inspectorates (against 92% for 2003). This is fully in line with one of the goals of the Strategy for modernization of the state administration for the improvement of the accountability of the inspectorates. In 38% of the inspectorates the results of their activities is publicly announced and this percentage is less compared to 2003.

2004 Annual Report for the Public Administration 79

382 329 222

2002 2003 2004

diagram VII-1. Number of staff of the inspectorates

50%

38%

24%

2002 2003 2004

diagram VII-2. Percentage of the inspectorate where the results of the activities are publicly announced

Out of the entire number of corruption signals received at the administrations (387) the highest number of signals have been received respectively at: the Ministry of Interior – 160, the Ministry of Finance – 31, the Ministry of Labour and Social Policy – 18, Sofia municipality – 17, the Ministry of Energy and Energy Resources – 16, the Ministry of Regional Development and Public Works – 13, Customs Agency – 12, the Ministry of Agriculture and Forests – 12, the Ministry of Transport and Communications – 11, the Ministry of Education and Science – 10, the Tax administration – 10, the regional administration Silistra – 9, the regional health centre Pleven – 7, the Ministry of Justice – 7, the Ministry of health – 7. Compared to 2002 (630) and 2003 (503) the permanent tendency for decrease in the total number of corruption signals continues. And this is an indication for the positive development in respect to the achievement of one of the basic goals stipulated in the government documents for decreasing the corruption events as a whole.

630 503 387

2002 2003 2004

diagram VII-3. Total number of obtained signals for corruption

80 2004 Annual Report for the Public Administration 330

22 35

central administrationregional administrations municipal administrations

diagram VII-4. Distribution of the signals for corruptions by types of administrations

In 67% of the structures at central level, 89% of the regional administrations and 78% of the municipal administrations there is a telephone number announced or another means for submission of signals for corruption. These data are close to the ones reported in 2003, though to some extent less, and they show lack of any considerable development on the matter during the reported period.

100% 2002 100% 89% 76% 80% 80% 67% 71% 78% 2003 64% 60% 2004

40% 35%

20%

0% central administration regional administrations municipal administrations

diagram VII-5. Availability of means for submission of signals for corruption

telephone mail e-mail

189 280

280

diagram VII-6. Distribution of the various means for submission of signals in the respective number of administrations

The total number of disciplinary sanctions registered for the whole administration is 82 imposed because of violation of the ethical rules and norms, established with the Code of conduct of the employees in the public administration. The greatest number of them (46) has been in the administration at central level. The administrative structures having more than 2 employees with sanctions of that type are: the Customs agency – 11, the Tax administration – 7, municipal administration Karlovo – 7, regional administration Silistra – 6, the Control-technical inspection – 4, the Regional inspection for environment and waters Stara Zagora – 3, Ministry of Youth and sport – 3, municipal administration Mirkovo – 3, the Automobile administration – 2, the municipal administrations Pazardjik, Sandanski, Gotze Delchev, Aitos, Vidin – 2.

central administration regional administrations municipal administrations 26

46

10

2004 Annual Report for the Public Administration 81

diagram VII-7. Number of disciplinary sanctions imposed because of violation of the ethical rules and norms established with the Code of conduct of the employees in the public administration

remark reprimand suspension of promotion in rank up to 1 year reduction to lower rank for a term of 6 months to 1 year dismissal 50

31 135

22

74 diagram VII-8. Disciplinary sanctions imposed to civil servants in 2004

remark warning for dismissal

dismissal 83

279 167

diagram VII-9. Disciplinary sanctions imposed to employees on a Labour Code in 2004

2003 2004

718 529 399

of civil servants of employees on the Labour Code

diagram VII-10. Disciplinary sanctions imposed in 2004 as compared to 2003

A considerable drop is observed of the total number of imposed disciplinary sanctions (928) as compared to 2003 (1928) – both for the civil servants and for the employees on the Labour Code. The most frequently imposed sanction both for civil servants and for employees on the Labour Code is the lowest level – “Remark”, 135 for the former and 279 for the latter, respectively. It is to be noticed that in 2003 the number of civil servants with sanctions is higher; while in 2004 the tendency is reversed, having in mind the total drop in the number of sanctions. The greatest number of disciplinary sanctions of civil servants are in: the Ministry of Interior (officers – 32, sergeants – 49 and civil servants – civilians – 6) – 87, the Customs Agency – 21, the Ministry of Agriculture and Forests – 19, the Directorate for National Construction Control – 18, State agency for metrology and technical surveillance – 12, the Social assistance agency – 17, Executive agency “Automobile administration”– 9, the Cadastre agency – 8, the National service for plant protection – 8, the State agency for the refugees – 7, Basin directorate Varna – 7, National veterinary-medical service – 7, the National service for advice in agriculture – 6, the Executive agency for the vine and the wine – 6, the Ministry of Economy – 6, the National office for the forests

82 2004 Annual Report for the Public Administration – 6, Ministry of health – 5, the General Archive Division – 5, Ministry of Defence – 4, the Regional inspection for environment and waters Montana – 4, the administration of the Commission for trade and consumer protection – 4, the Agency for state receipts – 4, the Control-technical inspection - 4, the Financial intelligence agency– 3, the regional administrations Silistra – 7 and Sofia – 4, municipal administrations Dobrich, Sliven, region Lozenetz of Sofia municipality - 3. The largest number of disciplinary sanctions of the employees on the Labour Code is in: the Tax administration – 106, the Customs agency – 78, the Social assistance agency – 32, the National veterinary medical service, Ministry of Agriculture and Forests – 9, the Commission for regulation of the communications – 9, the Directorate National Park Rila Blagoevgrad – 9, Bulgarian-German centre for vocational training Pazardjik – 8, Executive agency “Automobile administration” – 8, municipality Smjadovo – 8, Ministry of Economy – 7, the State agency for metrology and technical surveillance – 7, municipalities Nedelino, Orjahovo – 7, municipality Antonovo, Strelcha – 6, regions Vrabnitza and Nadezhda of Sofia municipality – 5, Ovcha kupel – 4, municipality Saedinenie – 5, municipalities Gramada, Dobrich, Pavlikeni, Jambol – 4, the Ministry of defence – 3, Ministry of Transport and Communications – 3, municipality Pazardjik – 3. 38 civil servants have not disclosed their property status under the provisions of Article 29 of the Civil Servant’s Act (25 for the central administration and 13 for the municipal administrations respectively). This shows a considerable reduction if compared to the figure of 124 for 2003. The greatest number is in: the Ministry of Finance – 10, the Commission for protection of competition – 9, the municipality Jakoruda – 8, the Ministry of Agriculture and Forests – 3, the State commission for the commodity exchanges and the market-places – 3, the municipality Parvomai – 2.

124

45 38

2002 2003 2004

diagram VII-11. Total number of civil servants who failed to fulfill their obligation for disclosure of their property status under the provisions of Art. 29 of the Civil Servant’s Act

The total number of civil servants who have failed in 2004 to fulfill their obligation under Art. 29a of the Civil Servant’s Act to declare commercial, financial or other business interests which they or related persons have in respect of the functions of the administration in which they work is 62. Such cases are observed mainly in the administration at central level (52). The greater number of them are in: the Ministry of Youth and Sport – 25, the Ministry of Finance – 10, the Commission for the protection of competition – 8, the municipality of Jakoruda – 8, the Ministry of Agriculture and Forests – 6, the State commission for the commodity exchanges and the market-places – 3, municipality Burgas - 2.

52

10 0

central administrationregional administrations municipal administrations

2004 Annual Report for the Public Administration 83

diagram VII-12. Number of civil servants who failed in 2004 to fulfill their obligation under Art. 29a of the Civil Servant’s Act to declare commercial, financial or other business interests which they or related persons have in respect of the functions of the administration in which they work

The total number of challenges to participate during the discussion, preparation and decision-making under the provisions of Article 29a paragraph 2 of the Civil Servant’s Act where the civil servant or related persons is interested in the respective decision or when he/she has with the interested persons relationships raising well-founded doubts in his/her impartiality during the reported period is 12.

7

3 2

central administrationregional administrations municipal administrations diagram VII-13.Number of challenges to participate during the discussion, preparation and decision making under the provisions of Article 29a paragraph 2 of the Civil Servant’s Act where the civil servant or related persons is interested in the respective decision or when he/she has with the interested persons relationships raising well-founded doubts in his/her impartiality in 2004

84 2004 Annual Report for the Public Administration VIII. Information technologies

The globalization process and the dynamics of development of the contemporary information society impose the ever increasing use of electronic technologies for the optimization of the performance of the administration and the services delivered to the citizens and the business. The good information and communication provision is a prerequisite for the establishment of a modern administrative system in the Republic of Bulgaria. The information and communication technologies are among the major instruments through which Bulgaria will improve the management organization, will raise the transparency and accountability and will introduce the European standards in the work of the administrative structures following the e-government mode. In 2004 Bulgaria continued to participate in the IDA (data exchange between the administrations) programme as a tool of the European Union directed twards the creation of common information space for exchange of data between the administrations of the EU member states and the applicant counries. Network connection with the TESTA network was realized. The participation in the IDA programme in 2004 was directed towards the standardization of the technocal and programme requirements of the national network for exchange of data between the administrations with those of EC.

VIII.1. National Public Administration Network Progress has been achieved in building the National Public Administration Network (NAMDA). A new line of the administration network has been build in Sofia in 2004, which supports the Commission for protection of competition, the Institute of Public Administration and European Integration, the Triaditza region, the Supreme administrative court and the National service for the crop and the fodder. The communication connection to Varna was prepared for the needs of the National Public Administration Network. It will be commissioned with the assistance of the Ministry of Defense. For all cities to which communication channels have been established (Sofia, Pazardzhik, Plovdiv and Blagoevgrad) the following services are available: ■ Access to Internet – only for Sofia, Pazardjik and Plovdiv; ■ WEB hosting ; ■ Protection from unauthorized access through Internet; ■ Maintenance of DNS server; ■ Provision of e-mail; ■ Collocation of technical equipment; ■ Service quality – QoS. The most important element in the approach for modernization of the governance is the provision of better services by the administration at all levels.

2004 Annual Report for the Public Administration 85

VIII.2. Institutionalized units for the development of the information and communication technologies

yes yes, some yes, specialized yes, specilized IT yes, maintenance no experts in another IT department directorate upon subscription structure by external company

diagram VIII-1. Institutionalized units for the development of the information and communication technologies\

It is seen from the above diagram that the number of the administrations where the IT maintenance is performed by another structure or by an external company is still large. Notwithstanding its drastic drop in 2003 (16% at central level, 23% at regional level and 45% at municipal level) the number of administrations which do not have a maintenance unit at all is still quite disturbing – 96 (20,78%).

Employees responsible for ICT 2004 г. 1 815 523 454 maintenance Employees responsible for ICT planning Employees responsible for ICT development 2003 г. 1 593 458 449

diagram VIII-2. Employees working in the ICT field in the administration

The data show that the employees in the administrations are mainly concerned with ICT maintenance (1 815 or 77,14%). The number of employees responsible for ICT maintenance has been increased with 221. The percentage is almost equal of this for the last year. The lowest number of employees are working in the field of ICT development (454 or 19,29%). In the administration as a whole 2 792 employees are working in the It area. They represent 4,4% of the total number of employees. The highest percentage ratio of IT employees versus the total number os employees is found in the executive agencies (7,91%).The lowest number of employees responsible for ICT maintenance, planning and development is in the municipal administrations, but their number has been increased with 231 as compared to the previous year.

VIII.3. Availability of computers 54 689 employees in the whole administration work on a computer. They represent 69,78% of the total number of employees. The highest is the percentage ratio of the employees in the regional administrations (96,43%), and the lowest in the municipal ones (55,43%).

86 2004 Annual Report for the Public Administration 2% 10% 21% bad average good 31% very good excellent 36%

diagram VIII-3. Level of computer availability in the administration

An important criterion for the development of the ICT in the public administration is the saturation with computers in the administrative structures. The saturation with computers in the administration is at a high level – 64% of the administrations assess it as “good” or “very good”, while it is assessed with “bad” only by 11 administrative structures (2%). There is no administration to report that it has no computers.

486 and less 13% 8% 11% from 75 to 300

from 300 to 600

from 600 to 1 000 25% 27% from 1 000 to 2 400 16% over 2 400

diagram VIII-4. Processor frequency of the computers in the administration

Compared to 2003 the number of computers has increased with 11 302 (23%). The distribution of computers in the administration is quite equal but unfortunately almost the half (46%) of the total number of computers in the administration is still with a frequency below 600 MHz which means that they are obsolete and do not fit the needs of the e-government. Their distribution among the administrations shows that the largest part of the old computers is in the central administration (13 236) and in the administrative structures established with a law (8 030), while in the regional administration they are only just 394. It should be noted as well that 38,62% of the computers in the municipal administrations (3 657 out of 9 469) are also in this category.

VIII.4. Local Area Networks According to the data received only 50 of the administrations (10,82%) have reported not to have local area network. The remaining 412 (89,18%) administrative structures report to have such. Only 95 (or 20,56%) of the administrative structures are connected to the public administration network (NAMDA), while the remaining 367 (79,44%) are not connected. 22 regional administrations and 205 municipal ones indicate that they are not connected to the public administration network.

VIII.5. Electronic information exchange The use of an electronic signature and electronic documents in the administration has grown considerably as compared to the previous year. Only one month after the compulsory introduction

2004 Annual Report for the Public Administration 87 of electronic signatures in the administration (01.01.2005) 14 994 documents have been processed. The highest number of electronically signed documents has been processed in the Commission for financial surveillance – 12 984. Concerning the issued electronically signed documents during the first month of 2005, 6 424 documents have been issued, and their number has increased with 11 635 to the moment of filling the inquiry form. The highest number of electronically signed documents has been issued by the Ministry of Energy and Energy resources – 14 325. By analyzing the answers presented by the administrative structures no clear picture could be obtained where to define one or several centres suitable for the building of systems for electronic information exchange. This gives two directions for the development of such systems in the future – either an unified system which from its start will cover all the administrations, or an open system wherein every administration could be incorporated in the moment it gets ready for this. The majority of administrations think that there is a need for legislation to regulate the electronic information exchange in the administration. This has been indicated by 69% of the structures.

yes 31% no

69%

diagram VIII-5. Necessity for legal regulation for the electronic information exchange in the administration

VIII.6. Access to INTERNET

yes, modem connection 8% yes, hired line or ADSL 25% 11% yes, cable Internet

27% yes, through NAMDA 16% no

diagram VIII-6. Access to Internet in the administration

The accessible, cheap and effective Internet acquires ever greater importance for the competitiveness both of Europe and of Bulgaria. It is for a second year, that the data from the sociological survey of NZIOM show that the more frequently the citizens have to communicate with the different administrative services, the more attractive Internet is as a means for gathering of information. At the same time every year there is an increase in the share of employees using the Internet. In 2003, 18 administrations have indicated that they do not have access to Internet. In 2004 this number has been reduced to 5 administrations, which have indicated that they have no access to Internet (1%). The most widely used is the cable Internet (54%), followed by the centrally provided Internet through the public administration network (21%). 10% of the administration use dial-up, wide band technologies such as ADSL or hired lines are used by 14% of the administration.

88 2004 Annual Report for the Public Administration The total number of employees in the administration having access to Internet is 32 593. The highest percentage ratio of employees having access to Internet are in the regional administration - 90,37%. The lowest is the number of these employees in the municipal administrations - 32,27%. The total number of employees in the administration having an e-mail is 23 626.

VIII.7. Internet web-sites of the administration and access to Intranet

8% yes

planned for 2005

11% no 27%

diagram VIII-7. Internet web page of the administrations

A total of 279 administrations have indicated that they have created their Internet site, 121 administrations are planning to create such in 2005, and 62 structures do not have Internet site. The existing sites of the administrations are with different design; they have terminology differences, including the names of the electronic services, which creates difficulties for the users of these services. Practical steps are necessary for integration of the electronic services of the administrations to the central portal of the e-government.

yes 27% yes, partially 36% planned for 2005

no 8%

29%

diagramVIII-8. Use of Intranet in the administration

Concerning the Intranet (internal access to sites, file servers, internal Web applications, and common resources) 299 are the structures using Intranet. 136 of them are those using partially this possibility and 39 plan to use Intranet in 2005. 124 are the administrative structures which do not use Intranet.

2004 Annual Report for the Public Administration 89

IX. E-Government

The e-government represents use of the information technologies by the public administration for delivery of public services in a more convenient, client-oriented and costs effective way. The e-government aims at the improvement of the internal coordination in the public administration for the effective interaction with the business as well as provision of better possibilities to the citizens for achieving modern and effective state governance. The e-government is perceived as an important part of the process of modernization of the public administration in Bulgaria and its preparation for operation in the conditions of full membership in the EU. In 2004 the work for the implementation of the E-Government Strategy in Bulgaria continued, the Strategy being the basic document which defines the goals and principles of development of the information systems related both to the services delivered by the public administration and with the general environment for the development of the information technologies in the administration of Bulgaria. Through the E-Government Strategy approved by the CoM with Decision Nr. 866/December 2002 the Government of the Republic of Bulgaria undertakes to realize modern and efficient management with the means of the modern information technologies in order to meet the real needs of the citizens and of the business at any time and any place. The Strategy sets three basic goals: ■ Delivery in an electronic form of high quality, economically effective and easy to access administrative services for the citizens and the business; ■ Enlarging the technological capabilities of the citizens and the business for participation in the state governance; ■ Development of an organizational, communication and information environment for the effective and transparent functioning of the public administration in compliance with the principles, norms and the best practices of the European union. The Strategy accepts the European indicators for the realization of the e-government, specified in the electronic Europe (eEurope) plan, i.e. the realization of 20 basic administrative services – 12 for the citizens and 8 for the business. The progress of the Bulgarian government in the delivery of 20 indicative administrative services electronically could be pre-estimated to 51.05 %. It is represented through summarized information for their percentage delivery, methods and procedures being used for the calculations that was developed by the Dutch Government and published on the site of the initiative of the EC - eEurope in its part e-Government.

IX.1. Commitment to building e-Government A crucial factor for the success of the e-Government is the understanding that it does not mean only automation of the existing processes. Through the e-Government the aim is to create new processes and systems as well as new relations between those who are governed and those who are governing. High level of commitment of the administrative management at central and local level is required for this. What is the situation at the moment? Almost half of the administrative structures (45,12%) feel committed to the introduction of modern forms of management of their activities. A large number of the central administration is engaged with the building and development of the e-Government. All ministries participate actively in this process. The Ministry of Energy and Energy resources and the Ministry of Interior carry out real document flow and have created organizational and technological capacity for the receiving/transmission of electronically signed documents from/to other structures. The Ministry of Economy and the Ministry of Finance provide for the full cycle of movement of the electronic documents – receiving, processing, drafting of new electronic documents and their sending. The Ministry of economy has introduced the use of the electronic signature by all employees. In 2004, the Coordination centre for information, communication and management technologies continues to

90 2004 Annual Report for the Public Administration carry out the activity for analysis, coordination and dissemination of the practical experience for the introduction of electronic services by the administration. 15 executive agencies have confirmed their commitment to the building of electronic governance in the Republic of Bulgaria. The Employment agency has introduced 5 interactive services for search and offering of labour force and vacant job positions. The executives of the Tax administration are also highly committed to this process. The administration was awarded two first awards for electronic services by the Minister of State Administration. In the competition for the web-site of the year in the category “Government and law” the web-site of the Tax administration has received the first award. In the second half of 2004, all companies with VAT registration received access to the service “VAT through Internet”. It enables the companies to submit the declarations and the buy-sell registers every month through Internet. The Agency for development of the communications and the information and communication technologies” under the Ministry of Transport and Communications is having an important role in the process of modernization of the state governance. In February 2004 the programme i-Bulgaria has been launched. It includes five initiative: i-Class is related to computerization and Internet access of the schools, i-University is building a development infrastructure in the Bulgarian universities and creates conditions for the development of distant training, while i-Net includes all universities and scientific institutes in a high speed communication network, i-Centre and Esi@Centre are respectively for supporting the access to Internet, computers and electronic services in poorly developed settlements and for facilitating the transfer of high software technologies among the Bulgarian IT companies. 20 executive agencies are not yet feeling committed to the process of modernization of the governance. The majority of the regional administrations work on initiatives for the creation of e- Government. Regional administration Varna implemented a system “open administration – Varna” and offers 66 services on-line. The system enables public monitoring of the delivery of electronic services and provides for free access in real time of the wide public to the administrative procedures that have started. In 2004, the regional administrations of Stara Zagora and Gabrovo have created portals for provision of administrative services at regional and local level. Regional administration Jambol offers 7 on-line services. This is the first stage of realization of an electronic region at the territory of the Yambol region. Only seven are the regional administrations that do not feel committed to this process – Burgas, Pleven, Russe, Sofia district, Targovishte and Shumen. Almost half of the municipal administrations indicate that they already work on the modernization of their working processes and introduction of e-Government. The municipal administration Gabrovo is working actively jointly with the regional administration for the implementation of e-Government. A project “Mechanism for interinstitutional communication in the delivery of municipal administrative services” has been launched. The managerial team of municipality Dobrich is among the most active participants in the initiatives for the introduction of e-governance. The municipality has received an award on an European competition for the best sites for cities, districts and regions EuroCrest 2005 and with first award from IPAEI in the national competition “On-line services for the citizens and the business” for 2004. A large number of the municipalities have introduced “one-stop shop” service delivery and indicate that they are just starting the wok on the modernization of the processes through the use of modern information technologies. Still high is the percentage of the municipalities which are not committed to this process (52%), but as compared to the data from last year, it can be concluded that there is considerable progress in the commitment of the municipal administrations.

2004 Annual Report for the Public Administration 91

central administration 100% regional administrations 80% 75% municipal administrations 69% 66% 66% 60% 59% 48% 52% 41% 40% 33% 25% 19% 22% 20% 12% 12% 1% 0% yes 2003 yes 2004 no 2003 no 2004 there are no data 2003

diagram IX-1. Readiness of the administration for the introduction of e-Government

IX.2. Normative documents related to ICT development and e-Government An important element of e-Government development is the adoption of the normative documents regulating the introduction, implementation, use and development of ICT (strategies, plans, design plans, process descriptions, procedures, and regulations). They ensure the gradual development of the initiatives and the sequence of the actions in the administration. Approximately equal is the number of the administrative structures that have developed long term and operational action plans with that of the structures which are developing such at the moment or will develop such during the present year (127/144). The Tax administration is again the leader in this respect. Besides the Tax administration the administrations at central level that have developed strategic documents are: 12 ministries, the National revenues agency, the “Customs” agency, the Commission for protection of competition, the Commission for regulation of the communications, the Commission for financial surveillance, etc. It was only the Ministry of Culture that has indicated to have no normative documents developed in relation with the development of the e-Government. The total number of the structures that have developed normative documents for the development of the e-Government is 33. 38 structures will develop such until the end of 2005. Among them are: the executive agency for medicines, the Employment agency, the Executive agency for environment, etc. Nine structures of the regional administration have developed such documents at an operational level, 4 – at a strategic level (Gabrovo, Stara Zagora, Kjustendil and Vrana), 6 are planning to develop such next year, and 5 are developing such at the moment. Regions Blagoevgrad, Russe, Shumen and Pleven have not yet undertaken actions for development of normative documents in this sphere. 44 structures of the municipal administration have developed such documents at an operational level (Jambol, Trojan, etc.), 12 – at strategic level (Varna, Burgas, Montana, Sliven, Valchedram, Dragoman, etc.), 52 plan to develop such in the next year, and 36 are developing such at the moment. Still high is the number of the administrative structures in the public administration (190) which have indicated that they do not have developed strategic or operational plans for the introduction of e-governance.

92 2004 Annual Report for the Public Administration central Operational level 18% 11% 10% 11% 50% administration Strategic level regional 32% 11% 21% 18% 18% administrations To be developed next year

municipal Under development 20% 5% 24% 16% 35% administrations No 0% 20% 40% 60% 80% 100%

diagram IX-2. Development of normative documents related to the Development of ITC and the e-Government

IX.3. Management of the e-Government implementation process In order to achieve the goals of the present government and the next governments in the field of e-governance a clearly pronounced leadership potential is needed in each administrative structure. The managers of the e-Government building process have to make transformation of the working processes, in order that good governance is achieved. The executives in the administration have to make an analysis of the working processes, to close down the inefficient activities and to optimize the work process. The IT will play a basic role for the optimization of the activities of the administration. It is important that the executives understand the role of the IT as a factor for the improvement of the efficiency and effectiveness for the achievement of the organizational goals and to give impetus to the reform. There will be a need for undertaking personal responsibility at the highest level in each structure, so that Bulgaria can meet the challenge of e-Europe. What is the situation of the management of the process of e-Government introduction at the moment? The tendency in the previous year has been positive in respect of undertaking the responsibility at the highest level. Clear increase is observed in the share of secretaries general who manage the introduction of modern and rational governance (with 13 % at central level and with as high as 20% at municipal level). The political cabinets also started to more actively participate in this process. The share of political cabinets managing the е-governance in the regional administrations has increased with 9% for one year. There is a reduction in the share of the directors who manage the building of e-Government. The municipal administrations are an exception where this share had been increased with 2%. It should be noted that at central level in 41% of the cases the task has been entitled to employees at lower levels but we can expect that the tendency for responsibility undertaken at the higher levels will be kept during this year.

2003 central administration regional administrations municipal administrations 42%

35% 35% 31% 25% 22% 18% 18% 13% 11% 10% 11%11% 8% 6% 3% 0% 0%

political cabinet secretary director of head of other no data general directorate department available

2004 Annual Report for the Public Administration 93

2004

51% 45% 41% 36% 35%

28%

15% 11% 10% 11% 4% 4% 4% 3% 2%

political cabinet secretary general director of head of department other directorate

diagram IX-3. Management of the process for application of the e-Government

IX.4. Roles, Rights and Obligations in E-government Projects Implementation The qualified personnel have a basic role in the implementation of e-Government. A number of projects on e-Government have been realized in the past year. An important moment in the implementation of the projects is the creation of public-private partnerships. It is expected that the PPP will have a basic role in the future as well. In many European states, leaders in e-governance (for example Estonia) the PPP takes basic position in the quick development of modern methods for management and development of civil culture. A number of projects on e-Government have been realized in the past year. In municipality Kardjali (http://kardjali.foss.bg) in 2004 there started a project for building an “e-municipality”, developed on the basis of open standards and free software with open code, for which no licensing fees are applied. The project had started in February this year and enables the citizens and the business to get into contact with the municipal administration through Internet and to get electronic services without using electronic signature. In municipality Varna there was built a system for electronic exchange of data between the institutions at the territory of Varna region. During the summer of 2004 in the region Stara Zagora a pilot project for “e-region-e-municipality” has been realized (http://egateway.sz.government.bg). A working group has been established for the realization of the project and it consisted of teams of the local administrations, the Ministry of Interior and three companies specialized in the high tech field. Compared to 2003 there is a clear tendency for the increase in the share of administrations which have defined the roles, rights and obligations for the realization of e-Government projects. With 17% have been increased the administrations at central level which have wholly or partially provided personnel for the development of e-Government (46%). The same is the percentage of the administrations which think that they do not have the capacity necessary for the successful introduction of the e-Government.

94 2004 Annual Report for the Public Administration central administration 2003. regional administrations municipal administrations

36% 33% 30% 25% 24% 20%21% 18% 18% 18%

12% 11% 7% 7% 6% 4% 5% 5%

yes yes, partially no we plan to provide rather no no data available qualified personnel

2004

50%

32% 33% 31% 31% 23% 19% 20%

15% 11% 13% 8% 7% 7% 0%

yes yes, partially no we plan to provide rather no qualified personnel

diagram IX-4. Personnel for implementation of the e-Government projects

The municipal administrations have a higher human capacity for e-Government development – 82% think that they have the necessary human resources wholly or partially. Only 7% of them do not have personnel which would successfully implement the e-Government projects. With 15% has been increased the share of the municipalities having the qualified personnel required for the implementation of the e-governance projects (38%). The same is the percentage of the municipalities which do not have the human capacity for successful management of the e- Government in Bulgaria. Approximately one fourth of the municipalities are planning to provide qualified personnel during this year. Half of the structures of the central administration think that the roles, the rights and the obligations of the team concerned with the initiatives of the e-Government are clearly or partially defined. For the whole public administration the percentage of the structures that have clearly defined the roles, the rights and the obligations is 51%. For the regional administrations the highest

2004 Annual Report for the Public Administration 95 percentage is again observed for this indicator as well – 82% indicate that the team knows its rights and obligations. Half of the municipalities think that they have clearly defined the role of the personnel.

IX.5. Strategic investments and infrastructure development The administrative structures generally have limited financial resources at their disposal. In order to achieve the results of the e-Government it is necessary that the priority tasks along the way for achieving of the goals in each structure be clearly defined. The investments in the infrastructure is an important stage in the e-Government development but the projects have also to be directed towards the improvement of the transparency, encouraging the active civil participation in the management process, as well as reducing the administrative and financial burden. The mere provision of a computer and access to Internet is not enough. The aim is to create optimum organization of management. The investment in the i-centers project could be given as an example. The investment definitely is a technological one, but it is also directed towards the content, because through it the people are attracted to participate in the development of the information society. The present and the planned investments in the field of the information technologies in the public administration amount to BGL 200 999 557. BGL 13 224 629 of them are investments in the territorial administration. The basic investments are directed towards equipment of the infrastructure and the building of computerized systems. In the municipalities the investments are directed mainly towards: purchase of software, electronic systems for data exchange with other administrations and the development of new Internet sites. Another large part of the investments are oriented towards the creation of Information and service centres. In order that the efficiency be guaranteed a coordination and accountability mechanism has to be developed.

IX.6. Modern Internet Solutions and Partnerships In the last years the executives in the administration started to establish partnerships with other governmental structures, the private sector and the NGOs to provide quality and access to the services they deliver. The joint work between the different administrative structures, the NGOs and the business helps the executives in implementing meaningful and important reforms in the e- Government field. A basic moment in the development of the e-administration is the effort to give a new meaning and to overcome the traditional unwillingness with which the administrative structures are doing joint work. The partnerships with other structures are in the basis of the creation of e- governance in Bulgaria. The effective communication results in the exchange of different ideas and best practices which have been implemented already by the majority of the structures. What do we observe? 49% of the structures at central level have close relations with administrative structures that develop Internet-based services. For the regions this percentage is 64%, and for the municipalities – 56%. In planning the future expansion of the e-Government it is also important to foresee expansion or change in the Internet solutions of the different structures. 73% of the structures at central level think that their Internet solutions are adapted to expansion. For the regions this percentage is 82%, and 59% of the municipalities believe that their Internet solutions are wholly or partially adapted to expansion and change. The data for the municipalities show increase with 15% as compared to the previous year. Of course, the development of Internet- based services is important also from the point of view of the development of the information society in the Republic of Bulgaria. The data from the study made by NZIOM show that the more frequent the citizens have to communicate with the different administrative services the more attractive is Internet to them as a means for gathering of information. The study of the public opinion shows another important fact. Near 11% of the citizens would use Internet as a means to receive information and services from the administration if they are availed with this possibility. The comparatively large share of the people who would like to use Internet services provided by the administration shows that similar way of contact would be successful if it were developed. This fact is very important for the administration during the planning of the initiatives for expansion of the e- Government.

96 2004 Annual Report for the Public Administration IX.7. Electronic signature The existence and the functioning of the e-Government depend on the timely and wide application of the electronic document and the electronic signature. On 5th July 2004 the CoM has adopted Decree nr. 153 appointing the Ministry of Transport and Communications as the authority that will start to receive and issue documents signed with an electronic signature from 1st September 2004. According the same Decree other ministries have also introduced the receipt and the issue of documents signed with an electronic signature. Only the Ministry of Africulture and Forests, the Ministry of Youth and Sport and the Ministry of Environment and Waters wiil introduce the electronic signature until the end of this year. On the 10th September 2004 the governot of Gabrovo region has sent a letter signed with an universal electronic signature, with which he informa the Prime-Minister that the regional administration receives and issues documents signed with electronic signature. Eight regiona will introduce the electronic signature this year, while regional administration Vidin and regional administration Sofia region indicate that they have not introduced the electroninc signature. Twenty are the municipal administrations that have introduced the electronic signature, and 62 municipalities plan to introduce it in 2005. The total number of structures for the whole administration that have introduced the electronic signature are 183. In line with the increase in the use of the electronic signature in the administration it is observed that the public is more and more informed about the possibilities for its use. The survey carried out by NZIOM on the public opinion for the public administration reform and the administrative service delivery for the citizens and the business shows that the percentage of people informed for the use of the electronic signature has grown from 16% to 24% just in one year. Every fifth Bulgarian citizen now expresses wish to show his identity in an electronic way.

2004 Annual Report for the Public Administration 97

X. Projects supporting the modernization of the state administration

A number of projects supporting the administrative reform are implemented in the state administration, the emphasis being mainly on improvement of administrative service delivery, e- government, application of present practices in human resource management, anticorruption. The projects are in support to the implementation goals outlined in the Strategy for modernization of the state administration – from accession to integration 2003-2006 and the measures of its Action Plan. Projects in the field of strengthening of the administrative capacity, financed by the European Commission or other foreign donors 8 have been under implementation in 209 administrative structures in 2004. Qualified experts, with fluent command of foreign languages and experience in the field of programming and project management are required in order that the funds of the projects be efficiently managed and absorbed. More than 77% of all the administrative structures consider that they have experts with the required knowledge and skills for programming and project management. Compared to the year 2003 when this percentage has been lower (about 50%), in 2004 there is considerably higher self estimate in view of the capacity available. It is also noted that contrary to the opinion expressed in the year 2003 now all ministries assess as sufficient their administrative capacity. High is the estimate in the respect made by almost all state agencies and executive agencies as well. The remaining 23% consider that the employees in their administration do not have the required professional experience because of the lack of appropriate training. Some municipal administrations point to the fluidity of labour force and the lack of interest on the part of narrow specialists because of the low salaries and the limited possibilities for development to be the cause for the lack of qualified employees. Because of the small staff and the insufficient number of employees to work in the field of programming and project management in the smaller municipal administrations the employees have to deal with projects in line with the other obligations which creates some difficulties. Other administrative structures think that sufficient funds for training are lacking or that the training proposed is not sufficient to give the employees the practical knowledge and skills needed. The total number of the employees working in the field of programming and project management, financed by foreign donors is 958. 522 of them work in the municipal administrations, 338 work at central level and 79 at regional level. Out of these 958 employees 372 (39%) employees have participated in the year 2004 in specialized courses for programming and project management organized by the Institute for Public Administration and European Integration. However, almost all administrative structures deem it necessary for their employees to continue to be trained and pass additional practically oriented training courses. In the year 2004 several projects related to the administrative reform have been successfully implemented: ■ A PHARE project BG 0103.02 “Strengthening the public administration – implementing public administration reform”. The project aimed at the strengthening of the capacity of the public administration at central and local level for the enforcement of the Law for the Administration and the Civil Servant’s Act, strengthening of the control and accountability mechanisms, improvement of

8 No information has been gathered for the projects financed by the state budget.

98 2004 Annual Report for the Public Administration the business environment through the introduction of the “one-stop shop” principle in the administrative service delivery. Among the more important project results are: – Functional analysis made in 7 pilot ministries and 6 pilot regional administrations; – Draft of a methodology for analysis and assessment of the functionality and effectiveness of the administration; – Supply of computers and printers for 264 municipalities, 24 regions in Sofia, 6 regions in Plovdiv and 5 regions in Varna and 5 pilot administrative structures at central level. – 6 training centres in regional administrations have been created and equipped. – 300 employees from the regional and municipal administrations trained on civil service, the functional analysis of the administrative structures, the administrative service delivery, the access to information and the accountability mechanisms in June – July 2004 in the newly created centres. ■ A project funded by the UK Department for International Development “Performance Appraisal, Pay and Career Progression in the Public Administration” The following most important project results were achieved: – Drafted a Regulation for the conditions and the order for attestation of the employees in the public administration (approved with CoM decree Nr. 105/21.05.2002); – Drafted Regulation for the competitions for civil servants (approved with CoM decree Nr. 8/16.01.2004 г.); – Drafted Unified Classifier of the positions in the administration and the Regulation for its application (approved with CoM decree Nr. 47/1.03.2004); – Developed and approved draft CoM Decree Nr. 48/1.03.2004 for the salaries in the budget organizations and activities and developed mechanism for performance-related pay ; – Developed Guidelines for the application of the Regulation for the competitions for the civil servants and of the procedures for promotion in the civil service in April 2004. ■ A project funded by the UK Department for International Development (DFID) “Improving Administrative Service Delivery Through the introduction of the “One-Stop Shop” Concept" The following most important project results were achieved: – Developed concept for improving administrative service delivery in the context of the “one-stop shop” and a Generic model for service delivery at “one-stop shop” (approved with CoM Decision Nr. 878/29.12.2002); – Introduced in June 2004 Internet-based system for self-assessment of the administrative service delivery; – 300 civil servants trained on the system for “one-stop shop” service delivery and the principles of service delivery to clients; – Developed concept for amendments of the Law for the administrative service delivery to physical and legal persons and the Law for the signals, claims and requests of the citizens; – Developed common standards for high quality administrative service delivery and Guidelines for the development of a citizens charter approved by the Minister of State Administration in May 2004. In 2004 projects have also been realized under the Agreement with the World Bank for the absorption of a grant from the Japanese government directed towards the reform of the public administration. ■ Under the project “Improvement of the consultation mechanisms” a survey was made of the consultation process in the context of the public administration reform; a concept was developed for the improvement of the consultation process in the context of the public

2004 Annual Report for the Public Administration 99 administration reform, including proposals for actions in accordance with the Plan for the implementation of the Strategy for modernization of the public administration. ■ Under the project “Preparation for reform of the civil service” a survey and a technical assessment was made of the existing system for HRM in the public administration, technical specification was drafted, several versions for new unified HRM system were developed, which can be implemented in the Bulgarian central administration in order to improve its effectiveness and efficiency. ■ As a result of the project “Development of indicators for performance standards and strengthening the capacity of selected administrative units for performance monitoring” a programme has been provided for training on the structural approach of the monitoring and assessment of the performance of the employees from the selected line ministries and a pilot programme for training on a structural approach for monitoring and performance appraisal, which contains a list of the respective subjects and target groups. ■ Under the project “Development of target indicators for monitoring of the implementation of the Strategy for modernization of the administration and the plan for its implementation” the system of indicators has been presented for monitoring and assessment of the Strategy for modernization of the administration and the plan for its implementation and proposals concerning the possibilities for incorporation of the purposed indicators system into the existing management information system for monitoring and strategic management of the introduction of e-Government in Bulgaria. At the end of 2004 a Phare project BG0203.07 “Strengthening the capacity for HRM in the Bulgarian public administration” has started. The project is directed mainly to the creation and application of an unified system for HRM at central, regional and municipal level by aiming to create also administrative capacity for policy formulation and creation of practices for HRM in compliance with the polices and practices of the EU member states. The expected project results are: – Comparative critical analysis of the HRM practices existing in Bulgaria including the existing pension schemes, – A model of a system for HRM and an common software developed. – Methodology for assessment of the labour force needed in the public administration. – Guidelines for personnel planning, organizational model and model for operational procedures, rights and responsibilities for the development of the employees and the personnel. – Measures for strengthening the HRM units in the administration at all levels. – Pilot implementation of the system in the administration at central, regional and municipal level (3 administrations at each level). Along the multi-annual programming Phare 2004-2006 the following projects have been developed and approved in support of the modernization of the public administration: ■ BG2004/016-711.10.04 “Increasing the capacity of the Commission for coordination of the anticorruption activities in the public administration and the judiciary” with a budget of EUR 2 400 000. ■ BG2004/016-711.10.02 “Support for the development of training programmes and training of representatives of minority and vulnerable groups” with a budget of EUR 1 500 000. ■ BG2004/016-711.10.01 “Strengthening the capacity of the Bulgarian public administration for the implementation of the e-Government strategy” with a budget of EUR 4 625 000, consisting of two subprojects: – Subproject 1: “Strengthening the capacity for management and coordination of the Directorate “Information technologies and communications” in the CoM for the application of the e- Government Strategy”.

100 2004 Annual Report for the Public Administration – Subproject 2: “Strengthening the capacity of the key ministries (the Ministry o Interior, the Ministry of Finance, the Ministry of regional Development and Public Works, the National statistics institute) for provision of electronic services”. ■ Project “Creation of a network of training centres for the application of the EU acquis” with a budget of EUR 4 425 000. ■ Project “Assistance for the creation and realization of a programme for appraisal and development of senior civil servants” with a budget of EUR 2 000 000.

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XI. Best practices in the public administration (benchmarking)

There are a number of good achievements and practices in the Bulgarian administration. Their identification and description enable the introduction of benchmarking as an instrument for sharing and dissemination of the good experience in the administrative organization and management. This permits that a comparison be made of the good practices with the European administrations. In 2004 the efforts for the creation of a new administrative culture in the work of the administration through the dissemination of the best practices and the realization of effective public- private partnerships have continued. There was a start of the creation of organization for the collection, analysis and popularizing of the best experience in the administrative organization and management. The Council for modernization of the public administration has assessed the importance of this начинание and has възложи to the Institute of Public Administration and European Integration to organize annual competitions for best achievements in the administrative activities9. At the end of 2004, the Institute of Public Administration and European Integration has връчи the awards in the competitions announced in the spring of 2004 for accessible and high quality administrative service delivery, for on-line services for the citizens and the buisness and for effective human resource management. 1. The competition for accessible and high quality administrative service delivery has been held with the support of the international company for professional services KPMG. Participants in the competition were 28 administrations (11 central, 5 regional and 12 municipal, administrations). The criteria used for the assessment of the presented proposals include: ■ correspondence with the strategic principles for administrative service delivery, specified in the concept for the improvement of the administrative service delivery; ■ size and character of the benefits for the consumers of services; ■ degree of communication ability and interaction between the organization and the consumers; ■ effectiveness and efficiency of the services offered, i.e. at what costs the specific result is obtained and whether the service offered well satisfies the needs of the client; ■ contribution for strengthening the team approach; ■ degree at which the corruptive practices in the actions of the employees are reduced and limited; ■ impact for improvement of the image of the administration, which offer the specific service; ■ possibility for application of the specific best practices to the activities of other administrations. On the basis of the criteria announced the nine best practices were defined. The Employment agency and the municipal administration Razgrad are ranked first. The teams of the Executive agency for the vine and the wine and the municipal administration Dobrich were ranked second. The teams of the Ministry of Health and of the municipal administration Razlog have been ranked third. The regional administration Varna and municipal administrations Knezha and Valchedram have received encouraging awards for original solutions in the administrative service delivery.

9 Detailed information for the competitions is published in the Internet site of the IPAEI at the address: http://www.ipaei.government.bg/awards_good_practice.phtml 102 2004 Annual Report for the Public Administration 2. Competition for effective human resource management The proposals received in this category have been assessed by a special commission of the IPAEI with representatives of external professional organizations. In 2004, 6 teams have declared their participation in the competition for best practices in the human resource management (5 of the central and 1 of the municipal administrations). The solutions proposed by the teams have carried original and innovative solutions and have disclosed large possibilities for the establishment of a modern system for the management of the employees and the organization of their work in the administration. The criteria used for the assessment of the proposals offered include: ■ the best practices presented should have been realized in the period November 2004 - April 2005; ■ compliance with the strategic goals of the institution and the normative framework in the field of human resource management in the administration; ■ creativity and team work in the realization of the proposed practices; ■ effectiveness and efficiency - achieved maximum effect with minimum costs; ■ compliance with the principles of equal access, transparency, impartiality and fairness in human resource management; ■ sustainability of the results obtained and possibility for application of the practices in other administrations. On the basis of the criteria announced the teams of the Ministry of Economy and the Ministry of Health have been ranked first. In the Ministry of Economy they have created an overall system for human resource management and organizational development, which includes Information system for human resource management, internal rules for the activities and the organization in the administration of the ministry, a system for planning of the activities and a system for preservation of the knowledge in the ministry. In relation with the human resource management and development in the Ministry of Health they have improved the efficiency of the personnel selection through the introduction of issues related to the motivation and the interests of the applicants for job, who have the aim to assess how quick the applicant will be integrated in the team and to what degree his/her personal views will contribute to the realization of the goals of the ministry; improvement of the performance of the employees by relating it to the possibilities for training and development; the newly appointed employees are introduced efficiently in the work of the administration въвеждат, settle conflicts in the administration effectively through the introduction of investigations among the employees for their opinion about the working medium and payment and the establishment of a model for the “emotional intelligence” among the employees; they have optimized the attestation of the employees in the ministry, perceiving it as a continuous process, which does not cover only the meetings twice per year and introducing the approach “solving a problem”. The second award in the competition has been granted to the team of the Ministry of Transport and Communications. 3. Competition for Internet services for the citizens and the business For a second year, under the patronage of the Minister of State Administration, the IPAEI has organized a National competition “On-line services for the citizens and the business”. In 2004, 13 administrative structures (5 central, 6 regional and 2 municipal) have participated in the competition. The criteria used for assessment of the proposed offers include: ■ easy communications in the use of the service; ■ the circle of consumers; ■ time for delivery compared to the off-line technology; ■ economic efficiency for the client and the administration; ■ innovative character.

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The Tax Directorate General has received the first award in the e-Government category for provision of on-line services for the business (filing of declarations and registers under the Law for the VAT and payment of VAT on Internet with debit cards). The service offered is one of the services in the group of 20 on-line services which the Bulgarian government has undertaken to provide until 2006 for the citizens and the business. The second award has been granted to the National insurance institute for its achievements in the development of electronic services for the citizens and the business. In 2004 The National insurance institute has proposed 3 new on-line services (personal access to information regarding the insurance status of every citizen at active age; establishment and effective functioning of the register of the labour contracts and on-line entry of data in the personal register). The first award in the e-region category has been granted to regional administration Stara Zagora for the realized pilot project jointly with the municipality Stara Zagora for the building of a portal for electronic services for the citizens of the region. The second award has been granted to the regional administrations Gabrovo for overall achievements in the building of e-region, related to the provision of on-line services for the citizens and the business and with the building of on-line exchange of documents between the regional and the municipal administrations. The regional administration Gabrovo is the first administration in the country which started the use of electronically signed documents. The first award in the e-municipality category has been granted to municipality Dobrich for te systematic and consecutive efforts for the delivery of more services for the citizens and the business. The on-line solutions of the municipality are characterized with their efficiency, good quality and the access for groups which have difficulties in their direct contacts with the municipality. The Sofia municipality has received second award for the successful start of the delivery of on-line services to the citizens and the business through the site of the municipality. Third award in the competition has been granted to the regional administration Varna for successful integration of the regional institutions in the provision of complex administrative services to the citizens and the business, Directorate General Citizens registration and administrative services for integrated solutions in the building of e-Government in Bulgaria in cooperation with other state institutions and Regional Directorate of the Interior for overall and systematic approach for widening the scope of services for the citizens and the business on the one-stop shop principle by achieving a high degree of automation of the document flow in the back office. 4. Competition for the best PR practices in the public administration In 2004 the first awards for the best PR practices have also been announced. 4 proposals have been presented for participation in the competition (2 from the central and 2 from the regional administrations). The criteria used for assessment of the proposals include: ■ compliance of the PR activities to the tendencies for modernization of the administration; ■ efficiency of the event; ■ originality of the messages; ■ public and media effect; ■ feed back from the public. The first award has been granted to the team of the Ministry of Labour and Social Policy for the proposed innovative PR solution: “Centre for social contacts”. The PR team of the municipal administration Russe has been granted second award for its project “For clean and beautiful town Russe”, and the project “Celebration of 100 years from the birth of John Atanassov” of the PR team of the regional administration Jambol has been granted the third award. In 2004, the portal for the public administration10 has established to be an instrument for management of the knowledge and the information for the public administration and the employees working in the administration through the provision of updated information. In September 2004 a new category has been created in the portal entitled “Best practices in the work of the administration”, wherein for four different subjects related to the work of all administrations there

10 http://sadocs.government.bg/sa 104 2004 Annual Report for the Public Administration has started the publishing of the best practices proposed and presented by the administrations themselves.

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XII. Conclusions and Recommendations

XII.1. Organization and efficiency of the activities of the administration ■ There is prevalence of strategic goals formulated as tasks or operational objectives related and directed to the internal organization of work and the structuring rather and not to the society and its requirements and expectations. ■ There is a 9% increase, in comparison to 2002, of the structures at central level, in which the goals and the expected results have been communicated to all the employees. ■ There is improvement of the activity and the functioning of the structures at central level and territorial level which is reflected in the realization of their goals. Compared to 2003 there is an increase with 29% of the structures at central level which have realized all predefined strategic goals, with 17% in the regional administrations and with 16% in the municipal administrations. ■ Among the reasons for the failure to realize part of the strategic goals the administrative structures most frequently indicate lack of financial resources and lack of technological resources. ■ The tendency for frequent changes in the Rules for procedure continues in 2004, too. In most cases the change in the Rules of procedure is provoked by needs for increase in the number of personnel or because of change in the structure, which makes the respective administration unstable. ■ The administrative structures have planned funds in their budgets in advance and for the purpose of the financial provision of the defined goals in 2004. ■ As a whole in 2004 a successful management in the sphere of the financial provision of the predefined goals in the administration is reported: – In the cases of lack of budget funds in 91.40% the necessary funds have been provided. The applied schemes are the mechanisms provided for in the Law for the state budget, funds from international programmes and agreements, donations and assistance and other means. – From the other methods reported to be used for financial provision of goals as an example for best practices we can indicate the following mechanisms: analysis and decisions taken for savings, improved control, attraction of the private buisness for cofinancing of projects and others. ■ The consultation process depends on the organizational culture, the attitute towards consultations, the behaviour and the skills of the managers of the state institutions. The impressions of the social partners are that in a large number of cases the consultations are formal and there is low efficiency and lack of a feedback for accepted or rejected proposals. ■ Weakness in the work of the councils under Article 21 of the Law for the administration continues to be the lack of clearly defined goals and developed programme for their realization as well as of a mechanism for reporting of their activities.

Recommendations: ■ To improve the quality of the specific formulation of the strategic goals through training, consultations and the publication of well formulated goals which are directed towards the society and towards the meeting of their needs. ■ To strengthen the personal commitment and participation of top executives in the process of formulation and realization of the strategic goals.

106 2004 Annual Report for the Public Administration ■ To ensure in the process of defining the goals that they are realistic, high quality and time bound and bound with the financial and technological resources available.

XII.2. Administrative service delivery ■ The charter is established as a reliable means for communicating the way for administrative service delivery in the administrations. ■ The satisfaction of the consumers from the administrative services provided raises slowly with the improvement of the opinion for the professionalism and the ethics in service delivery. ■ The lack of motivation for the employees, the imperfect internal organization and the lack of systems for exchange of information internally and between the administrations continue to be for the citizens a reason for the lower level of service quality. ■ The various interpretations of the Law for restriction of the administrative regulation and of the administrative control of the economic activities, the different methods for action show that there is no single methodological guidance both within the system of one ministry and for the overall application of the Law. In this case, there is lack of regulation in respect of the authority responsible for the implementation of the Law, respectively there is no legal delegation for the creation of the organization for the implementation of the Law, which impedes the establishment of an unified practice. Given the lack of such regulations it is difficult to establish appropriate administrative capacity for the development of policies and the imposing of a single practice in the activities of the administration. ■ The strategic planning of the policy for the improvement of the administrative service delivery is improved but there is still lack of clear commitment at central level, supported by special funds from the state budget for the realization of some initiatives. ■ The establishment of systems for feedback from the consumers and the employees continues to be a problem for the administrations. ■ An unified practice and clear procedures for dealing with claims is lacking. ■ The Law for the local taxes and fees and the other laws which regulate the respective fees is not applied uniformly in the municipal administrations and there is need for the development of a single list of types of local fees. ■ The publicity is a principle in the work of the administration and serious efforts are made for announcing the fees and prices established. However there is still much to be done in this direction, as from a total of 462 administrative structures only 152 report that the grounds for and the amount of the fees and prices are made public through the Internet. ■ The publicizing of the fees and the prices through Internet should be recommended as a priority form including also in respect to its financial provision. ■ There is a positive tendency which is connected with the reduction in the number of personnel in the respective municipal administrations and reduction of the costs including the costs for salaries. This tendency should be supported with a recommendation for provision of the necessary control in respect of the quality of the activities. ■ Knowledge management is such means contributing to the communication inside the organization and sharing of the specific information which is useful just for these people just in this moment. ■ Knowledge management is a business philosophy. It is a totality of principles, processes, organizational structure and technological applications, which help people to share and enrich their knowledge in order to achieve their business goals. ■ The establishment of a successful and functioning system for communication, sharing and analysis of knowledge takes time, resources and efforts. The success could be guaranteed when there is enough time for the development of the internal web-site and the participation of the required technical experts. Another important thing concerns the perosns behind the web-site - the

2004 Annual Report for the Public Administration 107 participation of the appropriate persons who will balance the needs of the employees with those of the business is the basis for the permanent use and life of the organizational Intranet. Recommendations: ■ To strengthen the training for the improvement of the administrative service delivery with emphasis on the dissemination of knowledge about the systems for quality management and the systems for knowledge management, the system for feedback, preparation of standards for administrative service delivery. ■ A purposeful centralized allocation of budget funds to be created which shall be directed towards stimulating different projects in the sphere of the administrative service delivery in view of equalizing the level of development of the individual administrations in respect to the administrative service delivery. ■ To relate the financing of the administrations for realizing the administrative service delivery policy with their work on the electronic system for self assessment of the administrative service delivery. ■ Common regulation to be established for dealing with the claims and signals for maladministration. ■ The implementation of the Law for restriction of the administrative regulation and of the administrative control of the economic activities to be entrusted to a specific minister and the possibility for the development of common rules or an instruction for the application of the Law to be regulated. ■ Individual modules in the programmes for training in administrative service delivery to be developed which should be related to the common application of the Law for restriction of the administrative regulation and of the administrative control of the economic activities. ■ An unit to be created in the administration at central level, which should develop the policy for facilitating the business environment and should coordinate the common practices for the application of the Law for restriction of the administrative regulation and of the administrative control of the economic activities. ■ Legal, financial and operational mechanisms to be developed for the realization of public- private partnership in the sphere of the services as well as for the integrated administrative service delivery.

XII.3. Register of the administrative structures and the acts of the executive authorities ■ The information entered for the territorial units of the central administration provides for the overall and full presentation of the structure of the central administration. ■ The Register of the administrative structures is the only place in Internet through which the administration is presenting publicly at one place unified information about its activity. ■ The efficient control on the entered information for the regulatory regimes could assist the executing of control on the implementation of the proposals of the Interdepartamental group in respect of improvement of the business environment through the facilitation of the licensing, permission and the registration regimes as well as control on the application of the Law for restriction of the administrative regulation and of the administrative control of the economic activities. ■ The incorrect entries of information for the regulatory regimes in the Register and the non-efficient control make meaningless the goals of the changes made in it in 2003 and do not help for transparency and predictability in the work of the administration through the presentation of clear and up to date information related to the regulation of the economic activities on the part of the executive authorities. ■ The lack of appropriate nominated unit/administration with direct functions on regulatory regimes, administered by the executive power does not allow for effective methodological

108 2004 Annual Report for the Public Administration assistance and control to be carried out on the information entered for the regulatory regimes and represent additional difficulty for the employees who are responsible for entry of this information. ■ The lack of internal organization and coordination in the administrations for submitting information of the employees who are making the entry of the information in the Register affects the efficiency of the maintenance of up to date and reliable information and embarrasses and demotivates the employees.

Recommendations: ■ The scope of the information for the activities of the administration in respect of the administrative services delivered by it, their price and the terms for their delivery should be enlarged. ■ The provisions of the Regulation for the conditions and the order for keeping the Regiter to be brought in line with the changes in the normative acts. ■ Effective control to be carried out on the information for the regulatory regimes by an administrative unit/administration with direct functions on regulatory regimes, administered by the executive power. ■ The obligations for maintaining the information in the Register to be reflected in the job descriptions of the employees and this to be entered in the personal plans in view of being taken into account in the performance appraisal. ■ The executives of the administrations to introduce a procedure for internal organization in relation with the entry of information in the Register.

XII.4. Civil service ■ In 2004, there was a considerable increase of the number of positions defined for civil servants as compared the positions on the Labour Code. The number of civil servants in the central and the regional administrations is higher, but in the municipal administrations the number of employees on Labour Code is still prevailing. ■ The increased share of the civil servants employed by a competition procedure (11 times higher) confirms the successful start of the process of application of the compulsory competition for entry into the public administration and is an indicator for the wide application of open and transparent employment procedures. ■ Quite warring is the fact that a considerable part of the managerial positions in the administration are occupied under the Labour Code which shows violation of the general principles for all managerial positions to be occupied by civil servants. ■ Most of the reported vacancies are in the central administration, which speaks about their ineffective absorption. ■ The managerial positions for civil servants in the public administration are occupied mainly by women, while the managerial positions under the Labour Code - by men. The reported data show that the high (political) managerial level is occupied mainly by men, while the middle (professional) one - by women. ■ In 2004, mainly employees on expert and supporting positions have been on sickness leave (87%) and only a small portion (13%) - employees on managerial positions in the administration. ■ It is still reported that the system for performance appraisal is not introduced in all administrations, especially in the municipal administrations in which the employees have not received their annual assessment. ■ The increase in the number of the unilaterally terminated service relationships by the employment body is indicative for the yet insufficient stability of the civil servants as well as for instability in the organizational structure of the administrations. The considerable share of the terminated service relationships on the part of the civil servant is because of lack of satisfaction for the pay level.

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■ The percentage of the employees in the administration aged up to 30 is growing, and it keeps highest in the regional administrations. ■ The percentage of the employees with university education in the public administration has grown from 61,3 % in 2003 to 63,3 % in 2004. ■ A large number of the employees have increased their educational level in 2004. ■ Highest is the percentage of the employees having secondary education in the municipal administrations (50,3%), where the percentage of the employees with university education respectively is the lowest (47,4%). ■ Additional remuneration (additional material incentives, allowances, awards, etc.) is paid to the employees in the administration with the aim to motivate and keep the personnel. ■ There is a misbalance between basic and additional payment in the administration, and there are structures where the additional pay exceeds the basic one, while there are structures where no payments of additional incentives for the employees are made. ■ In 2004, 48% of the structures have absorbed 100% of the funds provided to them for specialized training of the employees, and additionally to the training funds 44% of the structures have absorbed the funds for training planned in their own budgets. ■ The tendency for weak participation in the foreign language courses of employees in the territorial administration continues. ■ Contracts with employees who have increased their professional qualification with funds from the administration have been signed with 50% of the employees trained for more than 1 month, and this mechanism is mainly used by structures at central level. Recommendations: ■ The training of the appraising and the controlling executives should continue for the full and effective application of the system for attestation. ■ The training on the application of the competition procedure for selection of civil servants should be encouraged with emphasis on the choice of a method for execution of the competition. ■ The vacant positions in the central administration should duelly and effectively be filled in. ■ The common principle for the managerial positions to be filled only by civil servants should be applied across the whole administration. ■ The remuneration of the employees should be made to become competitive in respect to the private sector and be provided within the overall fiscal framework. ■ A transparent and effectively functioning unified system for financial stimuli based on the results achieved should be introduced in all administrative structures. ■ Conditions to be created in the administrative structures at territorial and central level for optimum use of the funds allocated for the purpose of training of the employees by planning the costs for the DSA in their own budgets. ■ The foreign language training of the employees to be encouraged in view of the future membership of Bulgarian in the EU and the necessity for development and management of projects financed by foreign donors.

XII.5. Administrative capacity for the application of the EU legislation ■ The new administrative units foreseen at the end of 2003 for the enforcement of the harmonized legislation are set upt in 2004 in the term recommended by the EC. The most important transformations are in the field of public procurement policy (Public Procurement Agency), food safety policy (within the system of the Ministry of Agriculture and Forests), antidiscrimination policy and gender equality policy (within the system of the Ministry for Labour and Social Policy), the policy on the prevention of the illegal trafficking of narcotics and people (the Ministry of the Interior). Changes have been made for the coordination of the efforts and the improvement of the mechanisms in prevention of corruption (the Ministry of Interior) and against the counterfeiting of 110 2004 Annual Report for the Public Administration currency (the Ministry of Interior). The strengthening of the administrative capacity for the preparation for the management of the EU funds planned for 2004 has been carried out in the respective ministries (the Ministry of Finance, the Ministry of the Regional development and Public works, the Ministry of Economy, the Ministry of Environment and Waters, the Employment Agency, the Ministry of Labour and Social Policy) in accordance with the commitments undertaken under Chapter 21 “Regional policy and Coordination of the Structural Instruments”. At the end of 2004, the legal regulation has been approved for executing changes in view of the application of the European legislation in the foeld of transport policy, and the actual setting-up of the new units will be done in 2005. In 2005 the restructuring of the Tax administration shall continue in view of the effective application of the tax policy. ■ The basic administrative structures for the application of the European legislation in the field of the free delivery of services, the competition, the state aids, the energy sector and the nuclear regulation, the statistics, the education and science, the monetary union, the financial control, consumers protection have been set-up. There is compliance of the structure of the Bulgarian customs administration with the requirements of the acquis communautaire. The Customs administration has established both central and regional, and local structures and all additional units required for executing control and training of personnel – Inspectorate, Cntral chemical laboratory, National training centre, an unit for information confidence. Within the position for negotiation under Chapter 1 “Free movement of goods” – CONF-BG 53/00 and the additional information to it, Bulgaria has pointed out that in almost all the sectors it has set-up the necessary administrative structures for the application of the harmonized legislation. In 2004, within the framework of State Fund “Agriculture” – SAPARD Agency there are created 15 product and functional working groups which are doing the preparatory work for the establishment of a Paying and intervention agency. ■ More than 900 employees have been employed in the newly created structures and in view of strengthening of the existing ones at central and territorial level, and more than 200 positions of them have been provided through internal restructuring. ■ In 2004, considerable actions have been undertaken for strengthening the administrative capacity through training of the employees applying the harmonized legislation. We can say that the necessity for urgent measures for the provision of specialized training which was declared in 2002 and 2003 has been overcome in 2004. The training needs are analysed in advance in the respective administrative structures and efforts are made for its provision not only by the Institute for Publci Administration and European Integration but also throygh requests addressed to TAIEX of the EC, through financing along the Phare and MATRA prohgrammes, and other donor programmwrs.

XII.6. Access to public information ■ There is no regulation for the executive authority responsible for the enfiorcement of the Law for Access to Public Information; there is respectively no legal delegation for the creation of organization for the enforcement of the law, which hinders the establishment of a standardized practice. The administrations rely only on the court practices and the assistance of the NGOs. ■ There is a reduction with 27% of the total number of the applications filed for access to public information in 2004 as compared to 2003. ■ There is a relative increase with 35% of the number of administrations in which requests for access to public information have been submitted as compared to 2003. ■ There is almost a double increase in the number of the decisions on the requests for access to public information for 2004 as compared to 2003. And this is givent the situation that the total number of submitted requests for access to public information have been reduced with 27%. ■ The total number of the refusals for access to public information marks a slight increase as compared to 2002 and 2003. ■ The number of appeals against the refusals has been doubled as compared to 2003 but it is rather low taking into account the total number of requests for access.

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Recommendations: ■ The enforcement of the Law for Access to Public Information should be entrusted to a minister and the possibility for for the issuing of unified rules or instructions for the application of the law to be regulated. ■ The Minister of State Administration to develop and approve detailed instructions for the application of the Law for Access to Public Information. ■ To continue the process of training of the employees in the administration to make them familiar with and to explain the Law for Access to Publci Information, with particular attention being paid on the different specific practical cases.

XII.7. Anticorruption measures ■ The total number of the employees in the inspectorates has been increased. ■ All inspectorate report for their activities to the chief axecutive of the administration, but the number of inspectorates that announce their activities publicly is not sufficient. ■ The permanent tendency for reduction in the signals for corruption continues. ■ There is a considerable reduction in the sanctions imposed on the civil servants and the employees under the Labour Code. The highest number of sanctions imposed is of the “remark” type. ■ Quite insignificant is the number of civil servants who have not declared their property status. Recommendations: ■ To develop uniform rules for the work of the inspectorates in relation with the proposed amendments in the Law for the Administration concerning the regulation of the activities of the inspectorates in the administrations. ■ To continue the established practice for intensive training and familiarizing the employees of the administrative structures with the different types of conflict of interests, situations that represent or could lead to corruption and for the behaviour in view of their avoidance or prevention. ■ To strengthen the control related to the execution of the obligation of the civil servants to declare their property status and probable conflict of interests.

XII.8. Information technologies Recommendations: ■ To change the statute and the functions of the units responsible for the IT from operational maintenance of software and hardware towards strategic management of the information resources and assigning the supporting functions to outside contractors. ■ To built-up the LAN networks in the administrations where such are lacking. ■ To complete the process of building the NAMDA network and a centralized Internet supply to be offered. ■ To make the basic information systems and technologies existing and operating in Bulgaria compliant with those used by the EU. ■ To create standards for exchange of information between the information systems in the public administration. Electronic document flow to be developed. ■ To organize training for the heads of IT units for high quality realization of the defined priorities – the administrations requesting the centralized building of a WEB portal most obviously are not aware that at present there are two portals in the administration – http://portal.government.bg and http://egateway.government.bg.

112 2004 Annual Report for the Public Administration ■ Top organize systematic training of representatives of all administrations for the use and application of IT – the answers to the inquiry show that many people from the administration are not aware of what the e-Government ot an electronic service is. ■ To introduce a compulsory test for computer skills for the employees in the administration and on the basis of the test results to develop a training programme for improvements of the computer skills of the employees. ■ To plan the gradual replacement of all computers with processors of less than 600 MHz frequency aimed to facilitate the transition to the e-Government. ■ To increase the bughets for It in the administration.

XII.9. e-Government ■ The percentage of the municipalities not committed to the process of building the e- Government is still high (52%), but compared to the data from the last year it could be concluded that there is wuite a progress in the commitment of the municipal administrations. ■ Still high is the number of the administrative structures in the public administration (190), which have indicated that they have not developed strategic or operational plans for the introduction of e-governance. ■ In 41% of the structures at central level and in 28% at municipal level the task for the management of the process for the introduction of the e-Government has been entitled to “other” employees but in this year we could expect that the tendency for the higher levels to undertake the responsibilities will be preserved. ■ Compared to 2003 there is a clear tendency for the increase of the share of administrations which have determined the role, the rights and the obligations for the implementation of the e-Government projects. ■ Every fifth Bulgarian citizent expresses wirh to identify himself in an electronic way. Recommendations: ■ The managers of the process for building the e-Government have to make a transformation of the working processes in order to achieve good governance. ■ To make an analysis of the working processes in the administration in order to close down the inefficient functions and to optimize the process of work through introduction of standards. ■ To build-up an integrated Internet-based system for delivery of administrative services by providing the normative and organizational prerequisited for this. ■ To use the public-private partnership for attraction of the civil society in the governance. ■ To direct the projects related to the e-Government towards improvement of the transparency, encouragement of the active civil participation in the governance process and reduction of the administrative and financial burden. ■ To make efforts for overcoming of the traditional unwillingness for joint work of the administrative structures. ■ To make use of the best practices. ■ To develop the courses and the training programmes in the field of e-Government. ■ To create a programme structure and organization of horizontal communication between the heads of the IT units in the public administration.

XII.10. Projects supporting the modernization of the state administration ■ In 2004 Phare projects supporting the public administration reform were approved at an amount of EUR 15 950 000.

2004 Annual Report for the Public Administration 113

■ 39 % of the employees working in the field of planning and management of projects financed by foreign donors have passed training in specialized cources on project programming and management organized by the IPAEI. ■ Compared to 2003 the administrative capacity for project programming and management has been increased and in 2004 77 % of all the administrations think that they have the employees with the required knowledge and skills. Recommendations: ■ The executives of the administrative structures have to plan training on project programming and management for all employees working in this area. ■ The employees who have passed courses on project programming and management to continue their training by participating in more practically oriented courses.

114 2004 Annual Report for the Public Administration

R E P U B L I C O F B U L G A R I A C O U N C I L O F M I N I S T E R S Copy

D E C I S I O N Nr. 548

dated 15 June 2005

For the approval of 2004 Annual Report for the Public Administration

On the grounds of Article 61, paragraph 3 of the Law for the Administration in relation with Article 13, paragraph 3, point 6 of the Rules of Procedure of the Council of Ministers and its administration

THE COUNCIL OF MINISTERS

HAS DECIDED:

1. Approves the 2004 Annual Report for the Public Administration.

2. Assigns to the Minister of State Administration the coordination and management of the implementation of the recommendations made in the Report.

PRIME MINISTER: /signed/ Simeon SaxCoburgGotta SECRETARY GENERAL OF THE COUNCIL OF MINISTERS: /signed/ Sevdalin Mavrov