Page 120 - Proceeding 2015

FAMP NICOLAE Ciprian
CCASP QUALITATIVE ANALYSIS OF THE RISKS IDENTIFIED IN THE MANAGEMENT OF THE NON-
REIMBURSABLE FUNDS IN ROMANIA IN 2007-2013

1. INTRODUCTION

Unlike private organizations, which are characterized by profit orientation and access to resources in a

competitive system, public sector organizations have more resources and more varied ways to achieve
their mission and objectives.

Such a resource that public sector organizations can use to meet the public interest is represented by the

non-reimbursable funds. In Romania, which became EU member state in 2007, the non-reimbursable
funds are mainly external, i.e. additional to state budget funding.

Thus, for 2007-2013 financial period, the main such non-reimbursable funds were represented by

structural and cohesion funds and rural development funds (over 90% of the total non-reimbursable funds
available). In conjunction with funds from the national level (i.e. state aid for SMEs), as well as other funds
from international donors (e.g. World Bank, United States Agency for Development, the Soros Foundation

etc.) from 2007 to 2013 it represented an average of about 4 bln. Euro annually, nearly 3% of 2013 GDP
(estimated to 631,130.1 million lei current prices). Compared to the state budget for the 2013 (98,182.5
million lei revenues) the non-reimbursable funds accounted for about 18%. For the 2014-2020 financial

period Romania may use an average annual allocation of about 5 bln. Euro (according to European PROCEEDINGS OF THE 11 TH ADMINISTRATION AND PUBLIC MANAGEMENT INTERNATIONAL CONFERENCE ”Strategic Management for Local Communities” 30 th – 31 st October 2015 Bucharest
Commission press release “Summary of the Partnership Agreement with Romania, 2014-2020”, dated

august 2014, Romania will have a total allocation of Euro 30,725,192,684 from the EU budget, plus
national co-financing).

For the use of the non-reimbursable funds was put in place a huge mechanism consisting of more than

100 public authorities and institutions, respectively more than 5,000 employees (civil servants and
contractual employees). By the level of October 2015 these were accountable for managing 197,913
submitted projects and 100,162 financing contracts only on structural and cohesion funds (convergence

objective) and rural development funds.

In this very complex field risk management represents a key element for the efficient and effective use of
the non-reimbursable funds. Making more efficient the risk management system should be a priority for

the state authorities and institutions.

2. THE LEVEL OF KNOWLEDGE IN THE FIELD AND RESEARCH METHODOLOGY

This study aims to analyze qualitatively the risks identified in the management of the non-reimbursable
funds in Romania in the 2007-2013 financial period. It starts from the economic theory of risks and
concentrates on the Risk management methodologies used by the Romanian state authorities and

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