Transparency of NGO Projects Financed from Public Resources (HR0046)

Which public issue does the measure address? With the entry into force of the Regulation on the criteria, standards and procedures of financing and contracting programmes and projects of interest to the public good implemented by associations (OG 26/2015 and 37/21), uniform standards have been established for financing programmes and projects implemented by NGOs from public sources, keeping in mind that this system has been being improved for years in the sense of greater transparency and the standardisation of criteria, standards and procedures for distributing funds. However, there is still a wider public perception that funds are distributed and spent non-transparently, and it is therefore necessary to invest more efforts to increase transparency and make all information available to the public. Understanding Public Procurement Act is one of the topics that NGOs, as beneficiaries of public resources in the implementation of their projects and programmes, continuously encounter, together with financial providers. In order to ensure the unequivocal application of the Public Procurement Act, it is necessary to ensure trainings for non-obliged entities of public procurement with the aim of increasing the transparency of the use of public funds.

What does the measure include? The measure includes the establishment of a new IT system to monitor and valorise the distribution of funds for programmes and/or projects of interest to the public good implemented by associations in accordance with Article 56. of the Regulation on the criteria, standards and procedures of financing and contracting programmes and projects of interest to the public good implemented by associations, updating and building up the public database on projects and programmes implemented by NGOs financed from public resources, and delivering a training programme on the criteria, standards and procedures for financing and contracting programmes and projects of interest to the public good implemented by NGOs, all with the aim of achieving greater transparency in financing NGO programmes and projects and greater public access to information about them. In addition, the measure includes conducting trainings for leaders and employees of commercial companies owned by the Republic of Croatia, that is, one or more units of local and regional self-government, as well as leaders and employees of these units and bodies of state administrations about the criteria, standards, and procedures for financing and contracting programmes and projects of interest to the public good implemented by associations.

How does the measure contribute to resolving the public issue? The establishment of the new IT system to monitor and valorise awards of financial resources to NGOs which carry out programmes and/or projects of interest to the public good will guarantee a better platform for all bodies which award funding to NGOs, with the aim of monitoring and valorising their programmes and projects, and preventing duplication in financing the same programmes and projects. By updating and building up the public database on NGO projects and programmes financed from public resources, public and up-to-date access will be guaranteed to information about financed programmes and projects, while the implementation of a training programme on the criteria, standards and procedures for financing and contracting NGO programmes and projects of interest to the public good will assure standardisation of the application of the Regulation on criteria, standards and procedures for financing and contracting programmes and projects of interest to the public good implemented by NGOs, at the level of all bodies which finance NGO programmes and projects, and will guarantee the transparency of the entire process, that is, the use of the IT system and public database which will be set up, updated and built up through the implementation of this measure. Reducing the administrative burden is emphasised throughout the whole system, as well as further strengthening the existing capacities for the effective management of the tender cycle. As part of the improvement of transparency, quality and standards in the processes of distribution of funds to programmes and projects of interest to the public good, training programmes are conducted on the criteria and standards for the distribution of donations and sponsorships to NGOs in accordance with the Regulation on the criteria, standards and procedures for financing and contracting programmes and projects of interest to the public good implemented by associations for public commercial companies. In addition, training on procurement procedures for non-obliged entities of public procurement is envisaged with the aim of increasing transparency of the use of public funds.

Why is this measure relevant to the values of the Open Government Partnership? The measure is relevant to transparency since it guarantees the transparency of the procedure of awarding funds to NGOs, and access to information on the programmes and projects financed. In addition, it is relevant to public accountability, since guaranteeing transparency and access to information in this area also affects the accountability of civil servants and officials who make decisions and implement activities in the field of distributing funds to NGOs.

Activities: Implementation start date: Implementation end date:

6.1. Creating a new IT system to monitor and valorise the distribution of funds for programmes and/or projects of interest to the public good implemented by associations January 2022 December 2023

6.2. Conduct a training programme on the criteria, standards and procedures for financing and contracting programmes and projects of interest to the public good implemented by associations for civil and local servants as well as other providers of public funds. January 2022 December 2023

6.3. Improve the implementation of the Regulation on the criteria, standards and procedures for financing and contracting programmes and projects of interest to the public good implemented by associations January 2022 December 2023

6.4. Conducting trainings on procurement procedures for non- obliged entities of public procurement with the aim of increasing transparency of the use of public funds January 2022 December 2023

Number and title of activities: 6.1. Creating a new IT system to monitor and valorise the distribution of funds for programmes and/or projects of interest to the public good implemented by associations Implementation indicators: - New IT system on financed projects set up - Public database of contracted and financed projects set up - Annual reports on the financed projects of NGOs published - Number of system users The baseline value of result indicators: The Government Office for Cooperation with NGOs has been publishing annual reports on financing projects and programmes of NGOs since 2006. The establishment of the new IT system will speed up reporting of financial providers for projects and programmes of associations from public sources. Moreover, the Government Office for Cooperation with NGOs has been running a base of financed projects from public sources since 2004, however, the base is updated only on the basis of the development of annual reports, and the establishment of the information system will enable a real-time overview of the contracted projects. Source of data and frequency of data collection: Annual reports on the financing of projects and programmes of NGOs Financial resources required (Source of funding and planned resources): Resources are planned from the State Budget, section 02010, Government Office for Cooperation with NGOs of the Croatian Government, activity A509042, Implementation of the National Anti-Corruption Programme, in the amount of HRK 6,937,375.00 in the year 2023. Implementation start date and January 2022 – December 2023 41 implementation deadline:

Number and title of activities: 6.2. Conduct a training programme on the criteria, standards and procedures for financing and contracting programmes and projects of interest to the public good implemented by associations for civil and local servants as well as other providers of public funds. Co-leaders: State School for Public Administration Implementation indicators: - Six educational seminars conducted for state and local level annually - Number of seminar participants The baseline value of result indicators: Number of workshops held and number of trained officials and other participants at the State School for Public Administration and directly with providers of public funds Source of data and frequency of data collection: Report on the work of the Government Office for Cooperation with NGOs Financial resources required (Source of funding and planned resources): Resources are assured from the State Budget, section 10995 State School for Public Administration, activity A677028, Implementation of the programme of professional training in the amount of HRK 30,960.00 annually. Implementation start date and implementation deadline: January 2022 – December 2023

Number and title of activities: 6.3. Improve the implementation of the Regulation on the criteria, standards and procedures for financing and contracting programmes and projects of interest to the public good implemented by associations Co-leaders: State School for Public Administration, state administration bodies, units of local and regional self-government Implementation indicators: - Number of trainings held and number of officials providers of financial and non-financial resources trained for the application of the Regulation. - Number of prepared sectoral analyses on financing needs. - Annual plans and calendars for the issuing of public tenders on awards of non-returnable resources to projects and programmes and institutional activities of NGOs published on the websites of the Government Office for Cooperation with NGOs and of the providers of non-returnable resources. - Number of tenders and other funding programmes implemented in accordance with the deadlines set out in the Annual Plan of Issuing Public Tenders. 42 - The annual presentation of public tenders, invitations and other cooperation programmes with associations and other NGOs held, financed from the State Budget, part of gambling revenues, EU funds and other funds at the national level. - Number of public tenders whose documents has been delivered to the Office for Cooperation with NGOs for compliance with the Regulation. - The evaluation of the implementation and impact of the Regulation on the criteria, standards and procedures of financing and contracting programmes and projects of interest to the public good implemented by associations in cooperation with all stakeholders to whom this Regulation applies carried out. - The Regulation amended or supplemented in accordance with the results of the carried out evaluation. The baseline value of result indicators: State administration bodies draw up annual plans for competitions on the basis of sectoral analyses, and during Info days, civil society organisations have participated in the consultation on the planned competitions. Source of data and frequency of data collection: Report on the work of the Government Office for Cooperation with NGOs Financial resources required (Source of funding and planned resources): Resources are assured from the State Budget, section 02010 Government Office for Cooperation with NGOs, activity A509000 Administration and management, and they relate to resources for the ordinary activities of the Office. Implementation start date and implementation deadline: January 2022 – December 2023

Number and title of activities: 6.4. Conduct trainings of NGOs on procedures of public procurement for non-obliged entities of public procurement with the aim of increasing transparency of the use of public resources. Participants in implementation: Ministry of the Economy and Sustainable Development Implementation indicators: - One training per year on procedures of procurement for non-obliged entities of public procurement conducted in an online format The baseline value of result indicators: 0, because no such trainings have been conducted Source of data and frequency of data collection: Report on the work of the Government Office for Cooperation with NGOs Financial resources required (Source of funding and planned resources): Resources are assured from the State Budget, section 02010 Government Office for Cooperation with NGOs, activity A509000 Administration and management, and they relate to resources for the ordinary activities of the Office. 43 Implementation start date and implementation deadline: January 2022 – December 2023

Action Plan Review

Commitment 6. Transparency in Public Funding of CSO Programs/Projects

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Modest