technical support for measuring the administrative costs and identifying the administrative burden

141 Pages·2013·3.87 MB·English

by  Alexandru Suciu

TECHNICAL SUPPORT FOR MEASURING THE
ADMINISTRATIVE COSTS AND IDENTIFYING THE
ADMINISTRATIVE BURDEN CAUSED BY
LEGISLATION

Batch 2 Measurement of administrative costs and identification of the administrative
burden caused by the legislation in the field regulated by the Ministry of
Administration and Interior and the Ministry of the Ministry of Regional
Development and Tourism
SMIS code 22752

FINAL REPORT

October 2012
Technical support for measuring the administrative costs and identifying the administrative burden caused by legislation –
Code SMIS 22752
Contents:
1.  ABBREVIATIONS...........................................................................................................................................4 
2.  DICTIONARY OF TERMS.................................................................................................................................5 
3.  OBJECTIVES OF THE FINAL REPORT................................................................................................................8 
4.  STUDY BACKGROUND...................................................................................................................................9 
5.  STUDY DESIGN............................................................................................................................................10 
5.1  SELECTION OF THE INFORMATION OBLIGATIONS.......................................................................................10 
5.2  IDENTIFICATION OF THE REQUESTED DATA................................................................................................13 
5.3  IDENTIFICATION OF ADMINISTRATIVE ACTIVITIES.......................................................................................13 
5.4  IDENTIFICATION OF POPULATION AND FREQUENCY...................................................................................14 
5.5  IDENTIFICATION OF INTERNAL FEES AND EXTERNAL FEES.........................................................................15 
5.6  SEGMENTATION OF INFORMATION OBLIGATIONS.......................................................................................17 
5.7  SELECTION OF DATA SOURCES.................................................................................................................18 
5.8  THE SURVEY - THE TOOL INTENDED FOR THE ASSESSMENT OF ADMINISTRATIVE COSTS..........................21 
5.9  THE SUMMARY DATA SHEET - TOOL FOR STANDARDIZATION OF INFORMATION AND FOR MEASUREMENT OF
ADMINISTRATIVE COSTS........................................................................................................................................26 
5.10  METHODOLOGICAL LIMITS.....................................................................................................................32 
6.  OVERALL FINDINGS OF THE STUDY..............................................................................................................34 
6.1  RESULTING QUANTITATIVE DATA...............................................................................................................34 
6.1.1  Overall amount of administrative costs and the percent of administrative duties..............................34 
6.1.2  The ranking of administrative costs of information obligations depending on the standard type of 
obligation..............................................................................................................................................................
  37 
6.1.3  The perception of the responders over the pertinence of information requested in relation to the 
purpose of the information obligation...............................................................................................................38 
6.1.4  The additional procedures performed by companies and the additional sets of data supplied...........39 
6.1.5  The quality and accessibility of electronic services..............................................................................40 
6.2  PROBLEMS / DIFFICULTIES AND GENERAL RECOMMENDATIONS FOR THE DECREASE OF ADMINISTRATIVE
COSTS 41 
6.3  OTHER ASPECTS IDENTIFIED DURING THE STUDY......................................................................................50 
6.4  LESSONS LEARNED...................................................................................................................................50 
7.  THE SPECIFIC CONCLUSIONS OF THE STUDY FOR BATCH 2 / MINISTRY OF ADMINISTRATION AND INTERIOR52 
7.1  RESULTING QUANTITATIVE DATA...............................................................................................................52 
7.1.1  General figures...................................................................................................................................52 
7.1.2  The ranking of the fields regulated depending on the administrative costs........................................53 
7.1.3  The ranking of information obligations depending on the administrative costs..................................62 
7.2  PROBLEMS / DIFFICULTIES AND RECOMMENDATIONS FOR THE DECREASE OF ADMINISTRATIVE COSTS...90 
8.  THE SPECIFIC CONCLUSIONS OF THE STUDY FOR BATCH 2 / MINISTRY OF REGIONAL DEVELOPMENT AND 
TOURISM.........................................................................................................................................................104 
8.1  RESULTING QUANTITATIVE DATA.............................................................................................................104 
8.1.1  General figures.................................................................................................................................104 
FINAL REPORT CODE SMIS 22752 – October 2012 Page 2 of 141
Technical support for measuring the administrative costs and identifying the administrative burden caused by legislation –
Code SMIS 22752
8.1.2  The ranking of the fields regulated depending on the administrative costs......................................105 
8.1.3  The ranking of information obligations depending on the administrative costs................................110 
8.2  PROBLEMS / DIFFICULTIES AND RECOMMENDATIONS FOR THE DECREASE OF ADMINISTRATIVE COSTS.122 
9.  APPENDICES.............................................................................................................................................130 
9.1  APPENDIX 1 - LIST OF NORMS INDICATED BY THE MINISTRY OF ADMINISTRATION AND INTERIOR..........131 
9.2  APPENDIX 2 - LIST OF NORMS INDICATED BY THE MINISTRY OF REGIONAL DEVELOPMENT AND TOURISM
  135 
9.3  APPENDIX 3 – SUMMARY DATA SHEETS AND MAI SURVEYS...................................................................140 
9.4  APPENDIX 4 – SUMMARY DATA SHEETS AND MDRT SURVEYS...............................................................141 
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1. Abbreviations
AA Administrative activities
ANA National Anti-Drug Agency
ANCEX Department for Export Controls - Ministry of Foreign Affairs
ANCPI National Agency for Cadastre and Land Registration
ANRSC National Regulatory Authority for Public Municipal Services
ANRSPS National Administration of State Reserves and Special Issues
CNP National Forecast Commission
CTPC The Permanent Technical Council for Constructions
DRPCIV Driving Licence and Vehicle Registration Service
IGPR The General Inspectorate of Romanian Police
IGSU The General Inspectorate for Emergency Situations
INCD The National Institute for Research and Development in Construction,
Urban Planning and Sustainable Spatial Development „URBAN-
INCERC”
INS The National Institute of Statistics
ISC The State Inspectorate in Constructions
MAI Ministry of Administration and Interior
SCM Standard Cost Model
MDRT Ministry of Regional Development and Tourism
IO Information obligation
ONRC The National Trade Register Office
ORI The Romanian Immigration Office
PFR Romanian Border Police
RUR Romanian Register of Urban Planners
SCM Standard Cost Model
SGG General Secretariat of Government
SRI Romanian Intelligence Service
EU European Union
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2. Dictionary of terms
Meaning of terms used in the study
Term Explanation
Direct costs incurred by the economic operator while meeting the
information obligation, other than the general expenses related to
Procurement
procurement required in the compliance process (travel, copying,
authorization, post costs, respectively)
The stages covered by an operator for meeting an information
Administrative activities
obligation, as derived from the legislation requirements.
Costs related to those administrative activities the company would
Good practice perform even if they are not enforced by law as they are intended for
their own good (e.g., related to their efficiency)
A 20% margin added to the internal fees and consisting of general
General expenses costs in relation to the use of office materials, equipment repayment,
costs of utilities etc.
Tool intended for the assessment of administrative costs, used during
Survey
interviews.
National generalization of administrative costs identified according to
the interview samples and the calculation of overall administrative
Extrapolation of data costs, respectively, within every company incorporated in Romania that
has met the information obligation during the most recent calendar
year for which statistic data are available.
The Excel tool used to summarize the answers identified according to
Summary data sheet
the interview samples and extrapolation of data at national level.
The figure indicating how many times a specific national information
Frequency obligation has been meet during the most recent calendar year for
which statistic data are available.
One of the main classification methods designed by the International
Labour Organization, belonging to an international family of economic
ISCO - International
and social classifications (www.ilo.org). The ISCO International
Standard Classification of
Standard Classification of Occupations is a tool used to organize
Occupations
occupations by clear groups/categories, depending on the potential
tasks and responsibilities.
Methodology intended to measure the administrative costs in Romania,
MCS Manual - Standard designed by the consulting companies Berenschot in the Netherlands
Cost Model and Business Development Group (BDG) in Romania, in close co-
operation with the General Secretariat of Government (SGG).
Legal obligations resulting from the legislation reviewed in our study
and resting with the private economic operators. An information
obligation involves:
Information obligation
• transfer of information by any means, to any kind of subjects (public
authority, citizens, other companies, any other type of third party);
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Code SMIS 22752
Term Explanation
and/or
• releasing information by any means, to any kind of subjects (public
authority, citizens, other companies, any other type of third party);
This situation does not include the stage of transfer of information
as the companies are obliged to maintain various types of data at
their registered office and/or at their units for various audits,
inspections or any other kind of reports that may be requested by
the administration or other authorized third parties.
Within the meaning or our study, the private legal entity registered with
Economic operator the National Trade Register Office of Romania. Non-governmental
organizations or the partially private organizations are excluded.
All the economic operators (within the meaning of our study) that have
Population met effectively the information obligation reviewed during the most
recent calendar day for which statistic data are available.
The costs related to those activities the companies would not carry out
Administrative task
voluntarily unless they are mandatory according to the law.
Differentiated review of administrative costs for an information
obligation depending on criteria such as: company size, company
location, insourcing and outsourcing of administrative activities, online
or written fulfilment of the information obligation, etc.
The segmentation of an information obligation becomes necessary
Segmentation when the size of the economic operator or the occurrence of new
elements in the way of meeting the information obligation stimulates
significant differences in the overall administrative costs. Under these
circumstances, the perception on the bureaucratic burden faced by the
companies while meeting the information obligation is significantly
different between segments.
Action taken by the regulatory authority in a certain field in order to
reduce the administrative costs generated by the information
obligations in the business environment. The administrative
Administrative
simplification actions may focus on introducing online systems for the
simplification
processing of various information obligations, the reduction of
complexity of forms, the removal of certain documents from the
requirements, the clarification of procedures/legislation etc.
Fourteen general activities used to rank the specific administrative
Standards for administrative
activities in every field, determined according to the Standard Cost
activities
Model.
Twelve general activities used to rank the specific information
Standards for information
obligations in every field, determined according to the Standard Cost
obligations
Model.
Costs incurred by the economic operator while meeting the information
obligation due to contracting of external experts/specialists. The
External fee
external fees are determined depending on the ISCO wage criteria and
are expressed as “X” RON/hour.
Costs incurred by the economic operator in relation to payment of
Internal fee salaries to the employees involved in meeting the information
obligations. The internal fees are determined depending on the ISCO
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Term Explanation
wage criteria and are expressed as “X” RON/hour.
The term “requested data” means the documents included in the
requests regarding the fulfilment of the legal information obligation. For
example, the requested data may include: the tax clearance certificate,
Requested data the receipt received upon payment of a tax, a technical memorandum.
The requested data listed in the legislation have been used to develop
administrative activities to form the basis for the measurement of
administrative costs, according to MCS provisions.

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3. The objectives of the final report
This report is the final and the most important outcome of the technical support project for the
measurement of administrative costs and identification of the administrative burden caused by the
legislation, implemented by the Deloitte consortium and Archidata in cooperation with our partner, the
General Secretariat of Government (SGG) and benefiting from the valuable involvement of the ministries
targeted by the project and of their subordinated structures.
Considering the division of the technical support contract in two batches and in order to observe the rules
on the monitoring and reporting differentiated by batches, this final report is mainly intended for the
progress and the results of the research in Batch 2 and for the information obligations under the regulatory
competence of the Ministry of Administration and Interior (MAI) and the Ministry of the Ministry of Regional
Development and Tourism (MDRT), respectively. As already mentioned in the interim methodological
report, the methodological approach used in the project is the same for the same batches of the contract.
The difficulties faced and a part of the technical conclusions drawn by batches are overlapping.
Within this report, we summarize the activity and the data found during one year of research (November
2011 - October 2012). At the overall level of Batch 2, the document is the result of the discussions held
with more than 180 companies and experts in Romania as well as of the reference to specialized
structures within the ministries in relation to about 350 information obligations. We wish for this report and
the databases transferred to the General Secretariat of Government to represent the reference point for
the Romanian administration in carrying out future national measurements both in terms of monitoring the
progress in reducing bureaucracy and in terms of lessons learned during the first national exercise of
measurement of administrative costs.
The final report observes the following structure:
• The description of the public policy circumstances that have caused the need for this study;
• Detailed presentation of methodological steps covered by the research team;
• Overall technical conclusions at the level of the entire batch (quantitative and qualitative data);
• Technical findings specific to Batch 2, grouped by ministries (quantitative and qualitative data);
• Attachments consisting of databases used within the project for Batch 2.
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4. Study background
The current obligations of Romania as EU Member State in relation to a better regulation include the
support of the European Commission efforts to reduce administrative costs at UE level (the Action Plan of
the EC on reducing administrative burdens in the European Union by 25% by 2012).
The Plan of Action of EC transposed in Romania by means of the Governmental strategy on a better
regulation at the level of central public administration 2008-2013, promotes the actions related to the
administrative reform and observes the EC requirements regarding the improvement of the regulatory
process. Thus, the EU member states must carry out ex-post measurements (on the legislation already in
force) regarding the administrative costs must define simplification objectives and take the necessary
measures to reduce bureaucracy. These actions are intended to support the development of a more
effective business environment putting less pressure on the businesses and facilitating thus the activity of
companies and promoting the economic growth.
The General Secretariat of Government has launched this project aiming at involving a specialized partner
in the effort of assessing bureaucracy, having the resources required for a research of such magnitude
and depth (more than 240 regulations assessed in terms of administrative costs generated for the
business environment).
The General Secretariat of Government shall further organize regular similar exercises for the assessment
of administrative costs caused by legislation in order to be able to monitor in a systematic manner the
progress of the financial burden of information obligations. We also consider that the previous assessment
of every information obligation newly introduced or amended through a regulation in terms of
administrative costs to be incurred by the companies based on the standard cost model used in this study
is convenient for every sound public policy.
The project assigned to Deloitte and Archidata consortium is financed through the Operational Programme
Administrative Capacity Development.
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5. Study design
5.1 Selection of the information obligations
The information obligations of private economic operators are those legal obligations deriving from the
specific legislation of the fields and ministries in our research. Thus, their selection was based on
regulations with the observance of the following criteria/stages:
1. The General Secretariat of Government has sent the list of regulations reviewed during 2009 to the
consulting team;
2. The two lists have been reviewed by our team in December 2011 - January 2012 in order to remove
from the scope of the review the regulations that were not in force anymore or to include the new
regulations in force in the measurement range.
3. The lists have included regulations from all three legal authority classes, i.e. primary legislation,
secondary legislation and tertiary legislation, covering the entire set of regulations starting
from the highest level and going down to the level of orders, guidelines, technical specifications;
4. Both ministries have approved the lists of national regulations they considered to be covered by
their regulation and control.
5. Subsequently, they proceeded to the thorough review of the regulations within the final lists in order
to select all legal obligations binding the below provisions on the private business environment and
consisting of, without being considered an exclusive list:
a. transfer of information by any means, to any kind of subjects (public authority,
citizens, other companies, any other type of third party);
b. releasing information by any means, to any kind of subjects (public authority, citizens,
other companies, any other type of third party); This situation does not include the stage of
transfer of information as the companies are obliged to maintain various types of data at
their registered office and/or at their units for various audits, inspections or any other kind
of reports that may be requested by the administration or other authorized third parties.
This category also included the obligations related to labelling, fitting of data plates etc.
6. In terms of the legislation mapping process, we confined to the versions valid at the end of
September 2011 and this final date is notified by SGG. A review of the legislation is a practical
and necessary approach as the research is carried out during about one year and, during this
time, the regulations might be amended or subject to amendment - virtually, the analysis and the
assessment of information obligations (the project plan directly) could not keep up with the reviews
in progress. Moreover, according to the project design, the interviews for the measurement of
administrative costs should have been performed by companies running the procedures and thus,
the possibility for consultants to identify companies that had already carried on the new process in
the amended legislation is unlikely.
7. The information obligations (IO) have been transposed in an Excel document for every ministry from
which we have obtained the following data: designation of the procedure, the target group of
economic operators for which it is intended, the title of the regulation regulating the subject
and indications regarding the article/articles within the legislation containing references to
that obligation. Every IO has also received a unique identification code to correctly delimitate
them and to remove the risk of double measurement of some IO. The use of this code is also a
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