883 Total administrative expenditure ( 2 )
8.41. See reply to 8.46.
8.42. The Commission has focused its support on a limited number of intervention areas. The intervention areas were aligned with the needs assessment of each individual bene ficiary country. In addition, the Commission took care to continue the support of specific areas or even maintain sector programmes under the new ENP instrument. The Commission also supported a number of high priority areas common to most of the beneficiary countries.
8.43. The Commission worked in accordance with the provisions established by the ENPI Regulation, which improved the transparency of EU funding through inter national trust funds. Recently, two comprehensive evaluation reports have also been produced on the Commission’s aid delivery through development banks and the European Investment Bank, and through the organisations of the United Nations family. The Evaluation Unit ( 5 ) commissioned external consultants to produce the reports with the aim of assessing the added value of these modes of channelling aid.
_____________
( 5 ) Evaluation Unit common to EuropeAid, DG Development and DG
External Relations. EN
8.44. In 2008, the Commission prepared a communication and visibility manual. Specific agreements on communication, visibility and reporting were also signed with the UN and the World Bank in 2006.
8.45. The Commission took measures to implement most of the recommendations of the mid-term evaluation report on MEDA II. However, the final evaluation report expected by mid 2008 will not be finalised until later in 2009.
8.45. See reply to 8.46.
Conclusion and recommendations
8.46. The Commission has taken steps which are largely in
line with the recommendations of the report. The Commission: 8.46. — took the necessary measures to ensure a smooth and quick
transition to the new country programmes;
— did not establish, however, strategic objectives and indicators of satisfactory quality in all strategy programming documents. The Court therefore continues to recommend that the Commission should define strategic objectives and adequate performance indicators that would allow an efficient impact assessment of the EU actions for the period as a whole;
— According to the ENPI regulation, the baseline and performance indicators are specified at a later stage, when setting up the Annual Action Programmes. It is indeed at the moment of formulation of a programme, when they tend to become more relevant and better defined, that those indicators are established. The Country Strategy Papers have as their objectives the provision of an overall outline of the situation in the country and the presentation of the priority strategic areas of intervention in order to meet the major challenges identified in the country. — focused its support on a limited number of intervention
areas, in line with the Action Plans and the needs assessment of each individual beneficiary country;
— continued to seek to apply best practices in planning and managing programmes and projects. However, the Commission is late with the final MEDA evaluation report, which could have added valuable recommendations for the implementation of the initial phase of ENPI.
— The mid-term evaluation report was finalised only in July 2005. Due to the fact that new MEDA financing decisions were still being adopted during 2006 and that, as a consequence, many of the actions relating to these decisions were still being imple
mented in 2008 and 2009; it was decided to postpone the final evaluation report by 1 year. This report is now scheduled for the close of 2009.
ANNEX 8.1
RESULTS OF TESTING PART 1: MAIN FEATURES OF SAMPLE BASED TRANSACTION TESTING
1.1 — Size of the sample
Year Number of transactions tested
2008 180 2007 145
1.2 — Structure of the sample
Percentage of transactions tested which were
2008 2007 External Relations Development and Relations
with ACP States Enlargement
Humanitarian
Aid Total
Final/interim payments 30 % 7 % 20 % 3 % 61 % 68 %
Advances 18 % 9 % 1 % 11 % 39 % 32 %
Total 48 % 16 % 21 % 14 % 100 % 100 %
1.3 — Relative frequency and estimated impact of errors
Errors 2008 2007 External Relations Development and Relations
with ACP States Enlargement
Humanitarian
Aid Total
Frequency of transactions tested which
were affected by errors 29 % {25} 38 % {11} 24 % {9} 12 % {3} 27 % {48} 26 % {37} Frequency of errors which are quantifiable 31 % {10} 45 % {5} 23 % {3} 67 % {2} 34 % {20} 27 % {10} Impact of quantifiable errors:
Most likely error rate falls in the range (*) 2 %—5 % 2 %—5 %
(*) The Court distinguished three ranges for most likely error rate: below 2 %, between 2 % and 5 %, above 5 %. The figures in the { } brackets are the absolute numbers of transactions.
1.4 — Types of errors
Percentage of errors in transactions tested which concern 2008 2007 External Relations Development and Relations
with ACP States Enlargement
Humanitarian Aid Total Eligibility 9 % 45 % 23 % 67 % 22 % 46 % Occurrence 6 % 0 % 0 % 0 % 3 % Accuracy 19 % 9 % 15 % 33 % 17 % Other 66 % 46 % 62 % 0 % 58 % 54 % Total 100 100 100 100 100 100 % EN
2.1 — Assessment of selected supervisory and control systems
System concerned
Key internal controls (Commission) Key internal
controls in national adminis trations Overall assessment Ex-ante checks on contracts and payments Management and
supervision External audits/ closure audits Internal audits
EuropeAid ( 1 ) HQ N/A DEL DG RELEX N/A ( 2 ) DG ELARG DG ECHO N/A Overall assessment 2008 2007 Legend: Effective Partially effective Not effective
N/A Not applicable: does not apply or not assessed ( 1 ) This assessment corresponds to the one published in the EDF Report.
ANNEX 8.2
FOLLOW-UP OF PREVIOUS DAS OBSERVATIONS
Court observation Action taken Court analysis Commission reply
External relations and development Budget support payments
Budget support can be granted if the partner country’s management of public spending is sufficiently transparent, reliable and effective, and where it has put in place properly formulated sectoral or macroeconomic policies approved by its principal donors, including where relevant the international financial institutions. On that basis the Commission developed specific guidelines establishing the conditions for disbursement of funds, the payment of successive tranches being conditional on satisfactory progress towards achieving the objectives. However, the performance indicators used to measure the progress achieved were not in all the cases examined time-bound, clear and unambiguous, and achievable.
(Annual Report concerning the financial year 2007, paragraph 8.14)
Introduction of performance indicators which are
more oriented towards output and outcome. It is already possible to verify the results of the actions taken in this respect. The Commission recognises the need to inject further precision into the design and measurement of indicators
in the budget support operations. General Budget Support Guidelines are currently being revised to improve the design and assessment of eligibility conditions and specific results oriented indicators in order to achieve a more rigorous results orientated approach, making use of process and output indicators, in addition to outcome indicators.
System of external audits
EuropeAid commissions additional project audits, selected on a risk-analysis basis, in order to provide a further layer of assurance. However complete procedures have not yet been developed so as to draw full benefit from these audits. (Annual Report concerning the financial year 2007, paragraph 8.25)
Closer monitoring of the implementation of the
AAP and better use of the results of the audits. The measures adopted have not yet been fully effective and further efforts are still required in
this respect.
The Commission is planning improvements to CRIS to allow improved analysis of audit data.
EN 172 Off icial Jour nal of the European Union 10.11.2009
Extended Decentralised Implementation System (EDIS)
In Bulgaria it was found that in spite of EDIS accreditation having been given (thus waiving the Delegation’s ex-ante control) the systems in question contain significant weaknesses.
(Annual Report concerning the financial year 2007, paragraph 8.12)
An action plan has been set up to ensure that
improvements are made, payments to two Imple
menting Agencies having been suspended in February 2008 and their accreditation withdrawn in July 2008.
In spite of the actions taken the fundamental weaknesses which led to the suspension of
payments and withdrawal of the EDIS accredi
tation still remain.
The situation is improving. However, even if any system weaknesses were to remain, there is no longer the potential for entering into irregular contracts, since the contracting of Phare funds was terminated.
Ex-post controls (closure audits)
Following a change of methodology, the number of audit reports was exceptionally high in 2007, and some have not received timely follow-up. (Annual Report concerning the financial year 2007, paragraph 8.26)
Serious efforts were made by the Commission to
monitor and process the audit reports. There has been significant improvement in processing the files. In 2008, 133 reports where processed among which 89 could be closed, whereas for the 5 first months of 2009,
71, among which the 44 not closed in 2008, were processed and 38 closed.
Humanitarian aid External audits
In 2007 DG ECHO significantly increased the number of field audits, although, as in 2006, the
majority of audits were done at partner’s head
quarters where the reality of expenditure cannot be completely checked.
(Annual Report concerning the financial year 2007, paragraph 8.27)
The Commission already increased the number of
field audits in 2007. The Court notes the efforts made to increase the proportion of field audits of projects. The reality of expenditure is continually checked through monitoring of projects by Technical assistants, the use of
field audits, the on-the-spot missions carried out by Commission staff and by the progress and financial reports submitted by the partner. Following the Courts recommendation DG ECHO has rebalanced the numbers of Headquarter and field audits so as to achieve an optimum and cost-effective balance.
EN icial Jour nal of the European Union 173
Education and Citizenship TABLE OF CONTENTS
Paragraph Introduction 9.1-9.7 Specific characteristics of Education and Citizenship 9.1-9.4
Audit Scope 9.5-9.7
The audit of advances 9.6-9.7
Regularity of transactions 9.8-9.11
Effectiveness of systems 9.12-9.30
Systems related to the regularity of transactions 9.12-9.30
Systems for the Lifelong Learning Programme 9.13-9.25
Ex-post controls at DG EAC 9.26
External Borders Fund 9.27-9.29
DG Communication 9.30
THE COURT’S OBSERVATIONS THE COMMISSION’S REPLIES INTRODUCTION
Specific characteristics of Education and Citizenship
9.1. This chapter presents the Court’s specific assessment of policy group Education and Citizenship which comprises policy areas 15-Education and Culture, 16-Communication; and 18-Freedom, Security and Justice. Detailed information is provided on the activities covered, the spending for the year and management type involved in Table 9.1.
Table 9.1 — Education and Citizenship, 2008 payments by policy area
(million euro) Budget
Title Policy area Description Payments 2008 Budget Management Mode
15 Education and
Culture Administrative expenditure (Lifelong learning, including multilingualism 1 1 ) 111 Centralised 060 Centralised direct indirect Developing cultural cooperation in Europe 48 Centralised indirect Encouraging and promoting cooperation in the field of youth and
sports 134 Centralised indirect
Fostering European Citizenship 24 Centralised indirect 1 378
16 Communication Administrative expenditure ( 1 ) 104 Centralised direct
Communication and the media 25 Centralised direct ‘Going Local’ communication 35 Centralised direct Analysis and communication tools 23 Centralised direct
186