PARFUND 2nd phase PAR FUND 2nd phase Support the implementation of the National Public Administration      Reform (PAR) Strategy, with technical assistance through the          establishment of the Public Administration Reform Fund- second phase. Support the implementation of the National Public Administration      Reform (PAR) Strategy, with technical assistance through the          establishment of the Public Administration Reform Fund- second phase. The Public Administration Reform Coordinators Office (PARCO) was established by
the Decision on establishment of a PARCO with the Office of the Chairman of the
Council of Ministers of Bosnia and Herzegovina in 2004. The function of the Public
Administration Reform Coordinator was established in order to implement common
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policies and procedures of competent authorities in Bosnia and Herzegovina in the area
of public administration reform as well as to ensure effective coordination of activities set
forth in applicable laws in Bosnia and Herzegovina, for which different institutions in the
country are responsible. The core responsibilities of the Office defined by the Decision
are: coordination of activities related to the preparation, adoption and implementation of
the Public Administration Reform Strategy. 
The Public Administration Reform Fund (PARF) is a joint financial initiative that brings
together financial resources of the donors and contributions of the state, the entities and
Brko District of BiH (BD). 
The Public Administration Reform Fund was established in 2007 by signing the
Memorandum of Understanding (MoU) for Establishment of the Public Administration
Reform Fund between the United Kingdom Department for International Development,
the Swedish International Development Cooperation Agency, the Netherlands Ministry
of Development Cooperation, the Delegation of the European Union to Bosnia and
Herzegovina and the Council of Ministers of Bosnia and Herzegovina, Government of
the Federation of Bosnia and Herzegovina, Government of the Republika Srpska,
Government of Brko District of Bosnia and Herzegovina and the Ministry of Finance
and Treasury of Bosnia and Herzegovina. The Fund has been joined by the Norway
Ministry of Foreign Affairs (Annex III to the Memorandum) and the Denmark Ministry
of Foreign Affairs (Annex IV to the Memorandum). Annex III defined the obligation of
the national authorities at all levels of government to finance the PAR Fund. The budget
of the Coordinators Office is treated as a contribution of Bosnia and Herzegovina to
PAR implementation. Amendments to the Memorandum have been effected by signing
annexes to the Memorandum (a total of five annexes have been signed), following a prior
procedure conducted in accordance with the Law on the Conclusion and
Implementation of International Agreements. The general goal of the Memorandum is
to provide a harmonised approach to supporting the implementation of projects across
Bosnia and Herzegovina that are within the framework defined by the PAR Strategy.
Apart from the section concerning the terms of duration that were renewed by annexes,
the Memorandum has proven to be a good framework for the operation of the PAR
Fund during the previous period, and its provisions have for the most part provided for a
smooth decision-making process. The Memorandum has established a Management
Board of the PAR Fund to organise coordination among MoU signatories. The
Management Board supervises the use of donor funds. The method of operation of the
Management Board is defined by the MoU and the Rules of Procedure of the PAR
Fund. 
In accordance with the MoU, PARCO is responsible for preparing and chairing sessions;
for identifying, considering, developing and drafting project specifications; and for
monitoring and evaluation of projects. In addition, PARCO is in charge of the
implementation of procurement procedure in accordance with the Law on Public
Procurement of Bosnia and Herzegovina; preparation and submission of materials for
approval to the Management Board; preparation of reports and provision to the PAR
Fund Management Board of information relevant for PAR Strategy implementation and
projects funded as part of the Strategy; as well as for informing the Management Board
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regarding all circumstances that may interfere with or threaten successful
implementation of the PAR Strategy.
The PAR Fund has been a key driver of the public administration reform processes and
it is owing to the PAR Fund, despite the lengthy procedures dictated by the complex
political environment, that a significant progress has been made in the process of public
administration reform. Despite the gaps identified through various independent audits of
the PAR Fund operation, this single instrument in Bosnia and Herzegovina for the
implementation of common policies of the governments in Bosnia and Herzegovina was
an indispensable instrument for the financing of public administration reform processes
and the meeting of accession requirements in this area.