NDA makes payments 2.5 times faster since government change2011. szeptember 26.
The National Development Agency (NDA) has 70% more contracts to sign per week compared to the period before the change of government and the amount of payments has also risen by 150%. The organisation works with tighter deadlines than are required by relevant regulations.
The NDA managed to meet both decision and contracting deadlines under the New Széchenyi Plan in all categories of rules of procedure (simplified applications, other applications, major projects). / Figure 1/
The average processing time for New Szécheny Plan projects was 60 days for major applications, 28 days for simplified applications and 66 days for other applications.
The average administrative time before contracting for New Szécheny Plan projects was 76 days for major applications, 17 days for simplified applications and 43 days for other applications.
However, significant differences can be observed between different intermediate bodies (decisions can sometimes overstep the deadline in certain cases). Decision time is increased by the time required to conclude calls for completion, as well as the additional 30 days of scheme level extensions.
Last year the number of signed contracts increased dynamically. Between January 2007 and the end of May 2010, an average of 103 assistance contracts were signed per week, which rose to 174.2 in the past year, indicating a 70% rise.
Payments are also made much faster. The weekly average of payments made has risen from HUF 5.5 billion to HUF 14.7 billion. In other words, 2.5 times as many payments has been made since last June than in the previous period.
The distribution of the financial resources must conform to both EU assistance regulations and Hungarian legislations [Government Decree 4/2011 (28 January) on the use of assistance from the Cohesion Fund, the Regional Development Fund and the European Social Fund during the 2007-2013 programming period.] Assistance is not free from the EU. The ‘price’ of the finances is the restrictions in use and the external system of criteria to which we must conform. We do not have a free hand in it.
EU regulations prescribe:
• the amount of assistance and its deadline,
• the principles of use (e.g. equal opportunities, sustainability, development obligation)
• public procurement obligation (in addition to national legislations the Commission directive must also be respected),
• eligible activities and expenditures and often their amounts as well,
• the operation of the application system (authority tasks, applicants obligations, decision-making procedures, financial processes).
Compliance to these regulations is strictly controlled and inspected by EU bodies. Misused funds and those not used by prescribed deadlines are revoked by the EU. In 2011 alone, the NDA will undergo 400 audits.
The National Development Agency has introduced several steps to speed up procedures. Not only has regulation become unified, but implementation has also become faster, simpler and more transparent through the reform of the legal environment. In connection to this, the agency has introduced several electronic application programmes as well as tools to speed up administration.
The generalising of electronic communication has replaced time-consuming paper-based administration. The introduction of electronic processes needed to conform to four speed related criteria:
• Sending of immediate notifications to applicants with regards to decisions on support requested and the administrative tasks of the maintenance period.
• The project coordinator system has made administrator obligations and responsibility more transparent within the NDA regarding project deadlines.
• E-signatures which make digital procedures possible during the payment process.
• Introduction of the online project progress report
Figure 1
Rules of Procedure |
Administrative time required for NDA decision-making (average day) |
Set deadline (average day) |
Administrative time required for NDA to sign contract |
Set deadline (average day) |
Major | 60 | 71 | 76 | 110 |
Simplified | 38 | 50 | 17 | 53 |
Application | 66 | 83 | 43 | 110 |