Strengthening the financial management and internal control system in the Employment Service Agency

General information

The project “Strengthening the financial management and internal control system in the Employment Service Agency” financed under the Operational Program for Human Resource Development 2007 – 2013, under the instrument of Pre-Accession assistance (IPA), started on March 2015 and the Project Duration is 24 months.  The key stake holder is the Employment Service Agency of the Republic of Macedonia, in particular those working on monitoring, procurement, controlling and accountancy

The project is implemented by two experts from AECOM International Development Europe

-           Ms. Nadya Topalova – International Auditor and Team Leader

-           Mr. Nikolaki Miov – External Auditor

Global objective 

The global objective is to integrate young people, long-term unemployed and women in the labour market by improving the efficiency, effectiveness and transparency of the work of the Employment Service Agency.

Specific objective(s)

The specific objective is to improve the effectiveness of the internal control and financial management system in the Employment Service Agency, thus contributing to proper, ethical, economical, effective and efficient management of public funds for employment programmes and services in line with applicable regulation.

Project outputs

1. Output1.     Report on the conducted risk assessment and identified internal controls gaps developed

2. Output2.     Action plan for mitigation of the identified risks and for establishing control procedures with clear implementation timeframe covering the project duration prepared

3. Output3.     Methodology of Internal Audit role in risk management and control mechanisms elaborated

4. Output4.     Internal audit awareness trainings, every six months for the project duration targeting indicatively 100 ESA’s employees organized

5. Output5.      Manual of internal control procedures developed

   1. Output6.     Appropriate audit procedures designed and audit strategy as well as audit plan for ESA developed

   2. Output7.     Trainings for ESA’s employees in carrying out audit function and controls (desk reviews, monitoring and on-the- spot verifications) implemented

   3. Output8.     Coaching sessions of relevant ESA’s staff for annual financial report preparation and verifications organized

   4. Output9.     A workshop in cooperation with CFCD, NAO, National audit authority, MLSP IPA units to disseminate project’s results held

Key Activities

The assignment will provide overall technical guidance and support to ESA to strengthen its capacities for financial management, internal control and audit. The project will be carried out in parallel to the implementation of the EU co-financed grant “Support to the Employment of Young People, Long-term Unemployed and Women II” and will also focus on ensuring proper management of EU funds for ALMM following sound accounting, budgeting, financial control and audit procedures.

The Framework contract shall provide the following services:

• Cary out risk assessment and identify gaps in controls in the present financial management and internal control system in ESA;

• Prepare and Action Plan for mitigation of the identified risks;

• Develop methodology of internal audit role in risk management and control mechanisms;

• Implement internal audit awareness training;

• Establish internal control procedures in ESA;

• Design appropriate audit procedures and audit strategy, as well audit plan for ESA;

• Implement trainings to the relevant ESA staff for carrying out audit function and controls (desk reviews, monitoring and on-the-spot verifications);

• Coach ESA for annual financial report preparation and verifications;

• Disseminate project’s results in a workshop organized in cooperation with CFCD, NAO, National Audit Authority and MLSP IPA units.

Key Messages

This project is focusing on the achievements the expected results and positive impacts generated by the

EU funding as well as setting up such by means of:

• A successful collaboration with all the system involved in the process;

• A foresighted project delivered assessment distribution of responsibilities, working with ESA and its IPA Management Unit and assisting their endeavors throughout the project;

• The beneficiaries would understand that they receive this support thanks to the EU, together with their development partners for more efficient functioning the financial management and internal control system in the usage of the EU funds.