Instructions for organization of the movement of accounting documents in NRIA

I AFFIRM
IVAN ATANASOV
EXECUTIVE DIRECTOR

INSTRUCTIONS
FOR ORGANIZATION OF THE MOVEMENT OF ACCOUNTING DOCUMENTS
IN NRIA

CHAPTER I. GENERAL PROVISIONS

Art. 1 This Instruction regulates general uniform rules and uniform procedures for organization of the movement (document flow) of accounting documents in connection with infrastructure projects managed by the National Road Infrastructure Agency (NRIA) pursuant to art. 13, para 3, items 4, 6 and 10 and art. 14 of the Financial Management and Control in the Public Sector Act.

(2) The organization of the movement of the accounting documents in NRIA is part of the internal control system of the National Road Infrastructure Agency (NRIA) for giving reasonable assurance that the risks are limited within the admissible limits determined in the risk management process.

Art. 2 The document flow is the way of movement of the accounting documents from the moment of their compilation or receipt in the National Road Infrastructure Agency (NRIA) until the moment of their transfer in the permanent accounting archive for storage.

Art. 3 In NRIA, only accounting documents are used to reflect the business operations for carrying out the activities approved by the Ministry of Finance in compliance with the following general accounting principles established in regulations and internal rules approved by the Executive Director of NRIA.

(2) Each business transaction must be reflected in due time in the respective standard form by filling in all obligatory requisites with a view to drawing up a document having probative force and full grounds for its accounting.

(3) All documents shall be filled in clearly and legibly with ink or pen, on a machine or other sealing device.

(4) Corrections and additions in the primary documents shall not be allowed for the amount and the indicated person.

Art. 4 (1) When accounting for the implementation of the infrastructure projects the employees of NRIA shall observe:

1. The regulations of the European Union;
2. International agreements;
3. Laws and by-laws;
4. The operational agreements to which the NRIA is a party,
5. Framework agreements to which NRIA is a party;
6. The contracts for gratuitous financial aid, to which NRIA is a party;
7. The applicable procedures, approved by the managing authorities, the executive agencies, respectively by the international financial institutions.
8. The obligatory instructions of the competent bodies;
9. The internal rules of NRIA;

(2) In case of ascertainment of discrepancy between the documents, indicated in para 1, the employee shall immediately notify in writing through his / her direct manager the director of a directorate, who shall notify the executive director and the Legal and property management Directorate.

(3) Within three days from the notification, the Legal and Property Management Directorate shall submit to the Executive Director.

(4) The Executive Director shall give written instructions in the cases of non-compliance.

Art. 5 The accounting documents prepared in connection with the infrastructure projects managed by NRIA ensure the documentary substantiation of the business operations and facts, observing the requirements for the compilation of the documents according to the current legislation.

Art. 6 (1) The distribution of the funds from the subsidy from the state budget shall be approved as part of the budget of NRIA by a decision of the Supervisory Board upon proposal of the executive director.

(2) The receipt of extra-budgetary financing for the purposes of infrastructure projects shall be documented by:

1. Contracts for receiving gratuitous financing
2. Financial memoranda;
3. Credit agreements
4. Requests for payment to the financing institution

(3) For the spending of the funds under para 1 and 2, the directorate coordinating the infrastructure project shall prepare an annual financial estimate and quarterly and annual forecasts for the payments for the infrastructure projects coordinated by it.

(4) The financial estimates and forecasts under para 2 shall be coordinated by the Budget Department of the Budget and Road Infrastructure Development Planning Directorate and the Justice Development Foundation Department of the Justice Development Foundation Directorate, shall be verified by the Financial Control Department of Operational Control and Risk Management Directorate and shall be approved by the Director of the Justice Development Foundation, the Director of Budget and Road Infrastructure Development Planning, the Director General of Directorate General “Administrative information service and office” and the Director of the Operational Control and Risk Management Directorate.

(5) The financial estimates and forecasts under para 2 shall be approved by the executive director.

Art. 7 The economic operations on the assumption of obligations by the NRIA on the infrastructure projects shall be documented by:

1. Public procurement contracts;
2. Civil contracts;
3. Primary accounting documents in the cases of art. 2, para 3 of the Ordinance on the award of small public contracts, when the obligation is worth less than BGN 2,000;
4. Acts for determination of compensations under the expropriations;
5. Revenue documents for fees, determined by a normative act;

Art. 8 (1) The economic operations on the implementation of public procurement contracts with subject construction-assembly and construction-repair works shall be documented through:

1. A certificate certifying the type, quantity and value of the performed construction and installation works, issued by the contractor;

2. Invoice from the contractor, which determines the specific amount of the expenditure incurred within the framework of the obligation undertaken by NRIA;

3. Payment order for payment on invoice by the contractor;

(2) Business operations for the performance of service contracts, provided by a natural person shall be documented by:

1. a protocol, report, administrative act or other written document certifying the type, quantity and value of the services provided;

2. a bill for payments, which determines the specific amount of the expense, performed within the obligation undertaken by NRIA;

3. payment order / expenditure cash order for payment on the account of remuneration and compulsory contributions for social and health insurance and taxpayers, when such are withheld at the source of income;

(3) Business operations for the performance of service contracts, provided by a business enterprise shall be documented by:

1. a protocol, report, administrative act or other written document certifying the type, quantity and value of the services provided;

2. invoice determining the specific amount of the expenditure incurred in within the framework of the obligation undertaken by NRIA;

3. payment order for payment made on the contractor’s invoice;

(4) Business operations relating to the performance of procurement contracts for the supply of goods or materials shall be documented by:

1. acceptance-transfer protocol, certificate, administrative act or other written document, which certifies the type, quantity and value of the provided services;

2. invoice determining the specific amount of the expenditure incurred in within the framework of the obligation undertaken by NRIA;

3. payment order for payment made on the contractor’s invoice.

(5) Business transactions for the payment of expropriations are documented through:

1. entered into force administrative and judicial acts determining the persons to be compensated and the amount of compensation;

2. payment documents for payment under an administrative act for determining of compensation.

Art. 9 (1) The documents under art. 8, para 1, items 1 and 2, para 2, items 1 and 2, para 3, items 1 and 2, para 4, items 1 and 2 shall be submitted to the office of the central administration of NRIA with a covering letter.

(2) The clerical staff shall put an incoming number with date and time on the covering letter, copy and scan the received documents and submit the original documents of the site coordinator no later than 10 am on the next working day.

(3) In the covering letter under para 1, the following must be indicated:

1. Measure / Project / Subproject

2. Investment Program / Memorandum / Grant Agreement

3. Name of the site

4. No. The site in the investment / repair program of NRIA

5. No. and date of the contract /

Art. 10 (1) In the documents under art. 8, para 1, item 1, para 2, item 1, para 3, item 1, para 4, item 1 and the covering letters under art. 9, para 1, the following must be indicated:

1. Measure / Project / Subproject

2. Investment Program / Memorandum / Grant Agreement

3. Name of the site

4. No. The site in the investment / repair program of NRIA

5. No. and date of the contract /

6. Value of the contract (with VAT and without VAT), type of currency

7. Term of the contract

8. Term of acceptance under the contract

9. Term of payment under the contract

10. Name, UIC and address, telephone, fax, and e-mail for contact of the contractor

(2) The following information shall also be obligatorily indicated in the invoices:

1. Measure / Project / Subproject

2. Investment Program / Memorandum / Grant Agreement

3. Name of the site

4. No. The site in the investment / repair program of NRIA

5. No. and date of the contract

6. Term of payment pursuant to the contract

Art. 11. (1) The documents under art. 8, para 1, item 1, para 2, item 1, para 3, item 1, para 4, item 1 shall be adopted by the Executive Director or a Deputy Executive Director authorized by him

(2) In order to verify the cost in view of the technical and financial performance of the contract prior to acceptance under para 1, a documentary verification shall be carried out, as well as on-site verification or testing in accordance with the approved plan for on-site verifications.

(3) The documentary verification under para 2 shall be performed at the following stages:

1. first stage – technical inspection by the site coordinator;

2. second stage – budget inspection by an expert from the Budget Department of the Budget and Road Infrastructure Development Planning Directorate.

3. third stage – technical inspection by an inspector from the “Monitoring and

assessment of the Operational Control and Risk Management Directorate”;

4. fourth stage – financial inspection by an expert from the department “Payments under

projects” of the Justice Development Foundation Directorate;

5. fifth stage – financial inspection by an expert from the Financial Control Department of the

Operational Control and Risk Management Directorate;

6. sixth stage – monitoring by the infrastructure project manager;

7. seventh stage – approval by the director of the Operational Control and Risk Management Directorate.

(4) Each verifying and approving officer conducting the verification shall pass the documents to the officer conducting the verification at the next stage, noting the date and time of the presentation of the documents and of the start of the verification.

(5) In case of discrepancies in the verification process, the site coordinator informs the contractor and requests their removal.

(6) The coordinator of the site shall submit the verified and approved documents for acceptance by the Executive Director or the Deputy Executive Director authorized by him.

(7) The coordinator of the site shall inform the contractor about the acceptance of the documents issued by him.

(8) The documentary verifications shall be carried out through a checklist, approved by order from the executive director under the terms and conditions of the current instruction control over the implementation of projects and public procurement contracts of NRIA.

(9) The originals of the accepted documents under art. 8, para 1, item 1, para 2, item 1, para 3, item 1, para 4, item 1, the annexes to them and the originals of the checklists shall be kept by the coordinator of the site.

Invoice verification

Art. 12. (1) The documents under art. 8, para 1, item 2, para 2, item 2, para 3, item 2, para 4, item 2 shall be accepted by the coordinator of the site after the acceptance of the corresponding document under art. 8, para 1, item 1, para 2, item 1, para 3, item 1, para 4, item 1 by the order of art. 9 of this instruction.

(2) For the purpose of verification of the expenditure in view of the technical and financial performance of the contract before the acceptance under para 1, a documentary verification shall be performed.

(3) The documentary verification under para 2 shall be performed at the following stages:

1. first stage – accept a technical inspection by the site coordinator;

3. second stage – financial inspection by an expert from the “Project Payments” department of the Justice Development Foundation Directorate;

5. third stage – financial inspection by an expert from the Financial Control Department of the Operational Control and Risk Management Directorate;

6. fourth stage – monitoring by the infrastructure project manager;

7. fifth stage – approval of the invoice for accounting by the director of the directorate, coordinating the infrastructure project, and the director of the Operational Control and Risk Management Directorate.

(4) In case of discrepancies found in the verification process, the site coordinator informs the contractor and requests their removal.

(5) The coordinator of the site shall submit the approved primary accounting documents for accounting by the Financial and Accounting Department of the Justice Development Foundation Directorate

(6) The approved primary documents shall be accounted within the calendar month in which they have been accepted by the coordinator of the site by the order of para 1, but not later than 5 days before the expiration of the term for payment under the contract.

(7) The originals of the accounted documents under art. 8, para 1, item 2, para 2, item 2, para 3, item 2, para 4, item 2 and the originals of the checklists for their inspection shall be kept by the Financial and Accounting Department of the Justice Development Foundation Directorate.

Art. 13 (1) The list of proposals for payments shall be prepared by the department “Payments by projects” of Justice Development Foundation Directorate.

(2) The list of proposals for payment shall be coordinated with the director of the Justice Development Foundation Directorate and by the director of the Operational Control and Risk Management Directorate.

(3) The agreed list of proposals for payment shall be confirmed by a financial controller from the Financial Control Department of the Operational Control and Risk Management Directorate.

(4) The list shall be approved by a resolution of the executive director.

(5) The originals of the lists for proposed payments and the originals of the checklists for their verification shall be kept by the Justice Development Foundation Directorate.

Art. 14 (1) The payment orders shall be signed through the following system for two signatures:

(2) An expert from the Project Payments Department of the Justice Development Foundation Directorate prepares and verifies payment orders only for payments on posted invoices, which are included in the approved list of proposals under Art. 11.

(3) For the purpose of verification of the payment order for payment of incurred expense before the entry under the procedure of para 1, a documentary verification shall be performed at the following stages:

1. First stage – first inspection by the head of the sector in the “RP” department of the JDFD, who prepared the payment order;

2. Second stage – second inspection by an accountant from the “FS” department of the JDFD;

4. Third stage – supervision by the head of the “FS” department of the JDFD;

5. Fourth stage – confirmation by the financial controller from the “FS” department of the JDFD;

(4) The payment orders, confirmed by the financial controller, shall be submitted for signature by the persons pursuant to para 1 by the expert from the department “RP” of the JDFD, who has prepared the payment.

(5) The payment orders signed by the two persons under para 1, shall be submitted to the service bank for execution by the expert from the “RP” department of the JDFD, who has prepared the payment, within 2 days from their signing.

(6) The executed payment orders, certified by the servicing bank, shall be submitted to the Financial and Accounting Department of the JDFD for accounting by the expert from the “RP” Department of JDFD, who prepared the payment, no later than the next day.

(7) The originals of the accounted payment documents and the originals of the checklists for their verification shall be kept by the Financial and Accounting Department of the JDF Directorate.

Art. 15 (5) The economic operations for payment of expropriations shall be documented by:

1. 2. payment documents for payment made under an administrative act for determination of compensation.

(1) The payment documents under art. 8, para 5, item 2 shall be signed through the following system for two signatures:

(2) The “Expropriation” Department of the DPUS shall submit to the “RP” Department administrative and judicial acts with a report indicating the persons who shall be compensated, the amount of the compensation and the date of entry into force of the respective act within 5 days after the entry into force of the relevant administrative acts for NRIA.

(3) An expert from the “Projects Payment” department of the JDFD shall prepare and check the payment documents only on acts that have entered into force, which are included in the approved list of proposals under art. 11.

(4) For the purpose of verification of the payment document before the entry under the procedure of para 1, a documentary verification shall be performed at the following stages:

1. First stage – first inspection by the head of the sector in the “RP” department of the JDFD, who prepared the payment order;

2. Second stage – second inspection by an accountant from the “FS” department of the JDFD;

4. Third stage – supervision by the head of the “FS” department of the the JDFD;

5. Fourth stage – confirmation by the financial controller from the “Financial Control” department of the JDFD;

(4) The payment documents, confirmed by the financial controller, shall be submitted for signature by the persons pursuant to para 1 by the expert from the department “RP” of JDFD, who has prepared the payment.

(5) The payment orders signed by the two persons under para 1, shall be submitted to the service bank for execution by the expert from the “RP” department of the JDFD, who has prepared the payment, within 2 days from their signing.

(6) The executed payment documents, certified by the servicing bank, shall be submitted to the Financial and Accounting Department of the JDFD for accounting by the expert from the “RP” Department of the JDFD, who prepared the payment, no later than the next day.

(7) The originals of the accounted payment documents and the originals of the checklists for their verification shall be kept by the Financial and Accounting Department of the JDF Directorate.

Art. 16 (1) Requests for payment to the financing institutions and the managing bodies of the OP shall be signed by the executive director or a deputy executive director authorized by him.

(2) The requests shall be prepared by an expert from the “RP” department of the JDFD.

(3) A list of the supporting documents shall be attached to the requests for payments, which shall be drawn up by an employee of the “FS” department of the JDFD and confirmed by the head of sector in the “FS” department of the JDFD.

(4) The requests for payments shall be verified through a documentary verification, which shall be performed in the following stages:

1. First stage – inspection by the head of the sector from the “RP” department of the JDFD;

2. Second stage – inspection by the head of the “RP” department of the JDFD;

3. Third stage – inspection by the head of the “FS” department of the JDFD

4. Fourth stage – inspection by an expert from the “Financial Control” department of the Operational Control and Risk Management Directorate

5. Fifth stage – approval by the project manager.

6. Sixth stage – approval by the director of the directorate coordinating the implementation of the project;

(5) The verified and approved requests for payments shall be submitted for approval pursuant to para 1 by the expert from the department “RP” of the JDFD, who has prepared the request.

(7) The originals of the approved requests for payment and of the checklists for their inspection shall be kept by the JDF Directorate.

Art. 17 (1) The “Project Payments” Department of the JDFD is responsible for the preparation of quarterly, annual and final financial statements on cash and accrued basis for infrastructure projects implemented by NRIA according to a sample model approved by order of the Executive Director.

(2) The financial statements shall be approved by the executive director or a deputy executive director authorized by him.

(3) An updated forecast for the forthcoming payments under the project for the next 12 months shall be attached to the financial statements.

(4) Before the approval pursuant to para 2, the financial statements shall be verified by a documentary verification through a checklist, which is performed in the following stages:

1. First stage – inspection by the head of the sector from the “RP” department of the JDFD;

2. Second stage – Inspection by the head of the “RP” department of the JDFD;

3. Third stage – inspection by the head of the “FS” department of the JDFD

4. Fourth stage – inspection by an expert from the “Financial Control” department of the Operational Control and Risk Management Directorate

5. Fifth stage – approval by the project manager;

6. Sixth stage – coordination by the Budget Department of the Budget and Road Infrastructure Development Planning Directorate

7. Seventh stage – approval by the director of the directorate coordinating the implementation of the project

(6) In case of discrepancies found in the verification process, the expert, who has prepared the financial statement, shall eliminate the discrepancies.

(7) The verified and approved financial statements shall be submitted for approval pursuant to para 1 by the expert from the “RP” department of the JDFD, who has prepared the request.

(8) The originals of the approved financial statements for the implementation of the infrastructure projects and of the checklists for their inspection shall be kept by the JDF Directorate.

Art. 18. For the organization of internal documents flow in accordance with this instruction, the executive director may appoint clerical staff to perform the functions of internal couriers.

§ 1.Pursuant to this instruction:

1. “Infrastructure project” is an activity for achieving specifically defined results in the construction, overhaul, rehabilitation, current repairs, maintenance and operation of the national road infrastructure of the Republic of Bulgaria. The project has a specific start and end date, specific objectives, specific resources for the tasks and a certain level of quality. The implementation of activities for the preparation for the implementation of the project is an integral part of the project itself. The project can be implemented in project phases (project stages), which are technically and financially independent and have their own effectiveness.

2. “Costs for the implementation of an infrastructure project” are the costs related to the activities planned in the project description and are determined in the project budget, including the costs for:

1. preparation of the infrastructure project;

2. personnel for the management of the project;

3. construction and installation works

4. external services (for feasibility studies, Environmental Impact Assessment, design, author’s supervision, construction supervision, external audit, laboratory tests, fees, taxes, etc.)

5. acquisition of lands;

6. equipment;

7. delivery of materials;

8. ensuring publicity;

10. the administrative costs of the project, etc.

3. “Site Coordinator” is an expert from a unit of the NRIA administration, coordinating the infrastructure project, or another person, determined by an order of the Executive Director.

4. “Infrastructure project manager” is the head of the department from a unit of the administration of NRIA, coordinating the infrastructure project, or another person, determined by an order of the Executive Director.

§ 1. The instruction is accepted on the grounds of art. 21d, item 1 of the Roads Act (promulgated, SG, issue 26 of 2000, amended and supplemented, issue 88 of 2000, issue 111 of 2001, issue 47 and issue 118 of 2002, issue 9 and issue 112 of 2003, issue 6 and issue 14 of 2004, issue 88 and issue 104 of 2005, issue 30, 36, 64, 102, 105 and issue 108 of 2006, issue 59 of 2007 and issue 43 and 69 of 2008), Art. 13, para 3, items 4, 6 and 10 and art. 14 of the Financial Management and Control in the Public Sector Act and art. 39, para 1, items 2 and 3 of the Regulations on the structure, activity and organization of work of the National Road Infrastructure Agency and its administration in force as of 09.09.2008, adopted by Decree of the Council of Ministers No. 219 of 05.09.2008. (Promulgated, SG No. 79 of 9 September 2008).

§ 2. (1) By 15 January 2009, the responsible persons shall develop and submit to the executive director for approval drafts for the samples of checklists provided for in this instruction.

(2) By 15 January 2009, the director of the Operational Control and Risk Management Directorate shall organize initial training of the respective employees on the application of this instruction.

(3) Within 15 days from the start of work, each newly hired employee shall undergo initial training.

§ 3 The implementation of the instruction is assigned to the director of the “JDF” Directorate and to the director of the Operational Control and Risk Management Directorate.