REPORT FROM THE COMMISSION - European Training Foundation: Annual Report 2002

TABLE OF CONTENTS

1. Introduction

1.1. Role of the European Training Foundation (ETF)

1.2. Structure of the ETF

1.3. The ETF 's evaluation and quality assurance

1.4. ETF development

2. ETF activities in 2002

2.1. The Mediterranean region

2.1.1. Support to the Commission

2.1.2. Information gathering and analysis

2.1.3. Development activities

2.2. Western Balkans

2.2.1. Support to the Commission

2.2.2. Information gathering and analysis

2.2.3. Development activities

2.3. Eastern Europe & Central Asia

2.3.1. Support to the Commission

2.3.2. Information gathering and analysis

2.3.3. Development activities

2.4. Candidate countries

2.4.1. Support to the Commission

2.4.2. Information gathering and analysis

2.4.3. Development activities

2.5. Technical assistance to the Tempus programme

2.5.1. Selection of Tempus CARDS, Tacis and MEDA Joint European Projects

2.5.2. Selection of Tempus CARDS and Tacis Individual Mobility Grants (IMG)

2.5.3. Monitoring

2.5.4. Computer development

2.5.5. Information and publications

2.5.6. Special events

3. Co-operation with other EU agencies

4. Financial report

4.1. Funding sources

4.2. Budget execution

4.3. Procurement

4.4. Financial and management systems

5. Personnel

5.1. Staffing and organisation chart

5.1.1. Temporary agents

5.1.2. Table A: The number of temporary agents in post on 31 December 2002 (by category and nationality)

5.1.3. Table B: Change in temporary agent staffing profile during 2002

5.1.4. Table C: The number and type of other staff employed in the ETF at the end of 2002

5.2. Personnel initiatives

6. Governing Board and Advisory Forum

6.1. Governing Board

6.2. Advisory Forum

6.2.1. Eastern Europe and Central Asia (EECA) Regional Group-13-15 June -Kyrgyzstan;

6.2.2. South Eastern Europe Regional Group - 20-21 June -Montenegro;

6.2.3. Candidate countries Regional Group - 6-8 October, Bulgaria

ANNEX 1: Table of operational achievements

ANNEX 2: Table of budgetary and non budgetary resources 2002

ANNEX 3: Table of Phare and Tacis conventions 2002

ANNEX 4: Table of Technical Assistance to the Tempus Programme 2002

ANNEX 4A: Table of Tempus Grants 2002

ANNEX 5: ETF Organigramme - 31 December 2002

ANNEX 6: Members of the ETF Governing Board 2002

ANNEX 7: Table of ETF events during 2002

ANNEX 8: Table of ETF publications during 2002

ANNEX 9: Glossary of country codes

1. INTRODUCTION

1.1. Role of the European Training Foundation (ETF)

In line with EC policy and operational priorities, the ETF supports the reform of vocational education and training and management training in over forty partner countries and territories. In doing so it provides services to five Directorates General within the European Commission (DGs External Relations; Enlargement; Employment and Social Affairs; the EuropeAid Co-operation Office and DG Education and Culture, the ETF DG de tutelle). Services are also provided to EC Delegations in the partner countries and to the European Agency for Reconstruction.

Services are delivered in four main geographical blocks across three continents: the Mediterranean partners [1]; the countries of the Western Balkans [2]; Eastern Europe and Central Asia [3]; and the Candidate countries / future Member States [4].

[1] Morocco, Algeria, Tunisia, Egypt, Jordan, Israel, the Palestinian Authority, Lebanon, Syria, Turkey, Cyprus and Malta. The latter 3 countries are candidates for membership of the European Union and as such are covered by ETF activities for Candidate countries/future Member States (see 4 below).

[2] Albania, Bosnia and Herzegovina, Croatia, Kosovo, Former Yugoslav Republic of Macedonia, Montenegro, Serbia.

[3] Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russian Federation, Tajikistan, Turkmenistan, Ukraine, Uzbekistan and Mongolia.

[4] Bulgaria, Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovak Republic, Slovenia, Turkey.

The ETF is a centre of expertise which integrates detailed knowledge of specific regional / country political and economic dimensions; in-depth knowledge and experience in labour market related vocational training issues; and effective management of major European projects. It is fully involved in the project cycle of the European Phare, CARDS, Tacis and MEDA programmes. As a centre of expertise, the role of the ETF is to:

- provide expertise, advice and information on labour market related training issues;

- provide in depth analysis of the situation in the fields of vocational education & training and employment related issues;

- spread information from Member States on best practice in the European Union; and,

- facilitate contacts amongst key actors and co-operate with other donors.

Since there are significant differences between the four regions and the partner countries, there are naturally a wide diversity of needs and demands articulated. For this reason the ETF does not offer standard products or processes but takes a "tailor-made" approach to the individual partners.

Wherever possible the ETF works at the systemic level to secure the commitment of Ministries and social partners in partner countries to effect changes in national legislation, systems and arrangements. In this way it tries to maximise leverage and achieve the best returns on its investment.

The ETF also provides technical assistance to the Commission for the Tempus programme.

1.2. Structure of the ETF

The ETF Governing Board (see Chapter 6) is chaired by the Director General of DG Education and Culture and is comprised of representatives from Member States and the European Commission. The Governing Board meets to discuss and approve the ETF annual work programme and budget and is also consulted on issues relevant to the strategic direction and management of the ETF.

The Governing Board is supported by the Advisory Forum, a body of over 100 vocational training specialists drawn from Member States, the partner countries, social partner and other international organisations. The main role of the Forum is to provide advice to the ETF and its Governing Board on the preparation of the ETF annual Work Programme. The Forum also serves also as an exchange network enabling good practices on vocational training policies and reform to be shared between and with countries in transition. Brief details of the work of the Advisory Forum can be found in Chapter 6.

The Director of the ETF reports to the Governing Board and chairs the Advisory Forum. In 2002 he was supported by around 100 Temporary Agent staff in the implementation of the Work Programme which was based on the ETF budget of EUR 16.8 million for that year.

The ETF is organised on a geographic basis with three departments which cover the future Member States and the Western Balkans; Eastern Europe and Central Asia; and the Mediterranean region. A separate department manages the technical assistance to the Tempus programme which the ETF provides for the Commission. In the field of management training, activities were co-ordinated by the Management Training Unit, which works in co-operation with the geographical departments. Underpinning all ETF operations is the Administrative and Central Services Department which provides technical and administrative support to the organisation as a whole.

1.3. The ETF 's evaluation and quality assurance

During 2002 the ETF benefited from a number of internal and external analyses of its strengths, weaknesses and development needs.

As required by the ETF Regulation (EC) 1572/98 and with help from external experts, the European Commission undertook a tri-annual evaluation of the effectiveness & efficiency of the ETF. In May 2003 the Commission presented the results of this procedure in a Communication to the European Parliament, the Council and the Economic and Social Affairs Committee.

With external professional advice the ETF launched its own process to plan and manage the continuing transition from an organisation dealing predominantly with project management to an expertise organisation providing advisory services to the European Commission and partner country administrations. This "change management" initiative produced a number of recommendations (see 1.4 below) which have been incorporated into a series of action plans. These issues will be taken forward in an ETF action plan which will also include recommendations from the external evaluation exercise described above. Subsequent actions will last until end 2003.

In 2002 as an integral part of the "change management" process the ETF published its 'Strategy 2002-2004' around which structured discussions with all departments and units on the strategy document took place. In the move towards improving quality and effectiveness the main steps envisaged by the "change management" group on "Quality of Services" have been implemented.

1.4. ETF development

The contexts in which the ETF operates are subject to rapid change, both in terms of the nature of the services requested by the European Commission and the needs and aspirations of partner countries. Furthermore, key issues which relate to the vocational and management training, labour market conditions and cultural factors all continue to evolve quickly, particularly in economies in transition.

The ETF is well aware of the need to stay ahead of these developments and in 2002 made considerable progress on the change process which started in 2001. The outcomes of this initiative will ensure that the ETF operations as a centre of expertise are based on the latest understanding of the implications of the changes which shape education and training system reform, both in Europe and in partner countries.

This intense ETF-wide exercise which was supported by external consultants produced a number of significant results:

- an ETF strategy - the role of ETF and its priorities 2003-2005;

- a complete Human Resources strategy to support the ETF strategy;

- a "route map" for developing customer oriented quality services;

- a blueprint for a new external communications strategy together with an action plan to raise the visibility of the ETF; and,

- a strategy and action plan for the development, management and sharing of knowledge within the ETF .

The outcomes from this exercise indicate the way ahead in responding to the growing number requests for support from Commission services, in particular EuropeAid; the European Agency for Reconstruction (EAR); the Delegations in partner countries; and the partner countries themselves.

Furthermore, in order to ensure that it remains at the forefront of service to the above partners the ETF nominated three major areas of lifelong learning for particular development:

- vocational training in the context of lifelong learning - in particular the further definition of the concept and implications for the implementation of action plans in relevant countries/regions;

- assessment and evaluation of progress in the reform of vocational training systems - designing an assessment methodology and tools, including benchmarking; and,

- development of training and skills at the enterprise level, particularly in relation to SMEs.

In addition to these measures, the ETF continued to consolidate its expertise in other important and core areas including: teacher and trainer training, qualifications and standards, and labour market assessment.

2. ETF ACTIVITIES IN 2002

This section outlines briefly the ETF activities carried out during 2002. In order to be consistent with Work Programme 2002 these activities are categorised under three headings: support to the Commission; information gathering and analysis; and development activities. A tabular summary of these activities by region is at Annex I.

2.1. The Mediterranean region

2.1.1. Support to the Commission

ETF has continued to develop a range of services to support the European Commission on the lines started in 2001. EuropeAid has been the main 'customer' of ETF services both for its short term operational needs and importantly, to feed medium term reflections on future EC orientations in the field of vocational training and labour market interventions in the Med countries.

DG External Relations is also requesting some services from ETF especially in support for the dialogue between associated Med partner countries and the EC. In addition, DG Education & Culture has asked for ETF help in developing an initiative to promote EU best practices in vocational training (based in particular on the Leonardo da Vinci programme) to Med partners.

Highlights of achievements in 2002 are:

- preparation of an analytical overview of the situation of vocational training and labour market system has been completed in Morocco and started in Tunisia and Egypt. Specific attention has been given to the role of vocational training as part of active labour market policies;

- building further the capacity of partner countries to design and implement responsive vocational training reforms, in particular through continued technical support to the development of a pilot apprenticeship scheme in Syria in line with the strategy of the EC Delegation;

- ETF provided the European Commission with inception and feasibility reports to help the Commission to design a vocational training reform project in Morocco and Egypt. The respective EC Delegations have subsequently asked ETF to provide support to the launch phase of these projects.

- ETF was called to assist the European Commission in developing the political dialogue between the EU and the partner counties by contributing to the design of a framework for dialogue on employment policy and provide technical back-up to the dialogue between the EC and Tunisia on training issues.

As a commitment to increased dialogue between the EU and the Med partners and at the request of DG Education & Culture, ETF has included examples of best practices from the Leonardo da Vinci programme, when relevant, in the activities mentioned above.

2.1.2. Information gathering and analysis

The overall objective in the development of the Observatory function is to increase the different Med partner capacities, in particular through networking of existing national structures. This approach has been validated by a stocktaking exercise on the existing capacities carried out throughout the region, completed during 2002 by the Maghreb region and piloted capacity building actions targeting Algeria.

Similar capacity building actions, adapted to the institutional setting of each country, have been started in Jordan and Syria with an observer status for the West Bank/Gaza and Lebanon. This first phase, awareness raising and establishing national task forces, will lead in 2003 to the operation of a co-ordinated network of national actors able to serve better the information needs of national policy makers and the international community.

2.1.3. Development activities

While most activities carried out by ETF contribute in a number of ways to building ETF intelligence on the various dimensions of the vocational training reform processes, a number of initiatives which took place during 2002 are worth mentioning:

- the completion of a regional study on teacher and trainer supply in the Maghreb and Mashrek region. Teachers and trainers are essential elements for the efficient implementation of vocational training system reform. In the Med environment, where demographic pressure and limited financial resources are immediate concerns, an integrated approach for the management of teachers and trainers was absent. This published study aims to improve the available intelligence on these issues and provide a basis for policy making and planning.

- in a similar way, 'in service' training is the response to the issues of continuing vocational education and training (CVET) in the Maghreb region. These countries, often at a more advanced stage of vocational training / labour market system reform, would benefit from a more comprehensive view of the different dimension CVET can bring to their systems as evidenced in the European Union over the past decades. To facilitate this process, a specific study has been made on the situation and potential for development of vocational training and labour market situations in Morocco, Tunisia and Algeria.

- to increase the effective collaboration between countries of the Med region, special attention has been given to building on regional best practice: for example providing opportunities for dialogue between Maghreb countries on continuing vocational training policies; and Tunisia has hosted a study visit of Syrian officials to learn about apprenticeship systems in Med environments. A similar arrangement is in place for the development of the "Observatory" capacity in the Mashreq region where Jordan is a focal point for Syria, West Bank and Gaza and Lebanon.

During the second half of 2002 ETF discussed a proposed series of thematic studies with the World Bank which would contribute to discussions on the reform of vocational training in the countries of the region. Three issues of particular importance, often neglected, were identified:

- governance and financing of training institutions; in particular the promotion of flexible and decentralised management;

- enhancing the participation of social partners in the design, financing and provision of training; and,

- the role of the informal sector in the acquisition and development of skills.

During late 2002 a concept was elaborated and the contractual tools developed for the preparation in 2003 of country reports covering five countries in the Med region. This work was approved by the ETF Governing Board in the Work Programme 2003.

2.2. Western Balkans

2.2.1. Support to the Commission

The European Commission increased substantially its investment in human resource development in the Western Balkans during 2002. As a result the ETF has now increased its involvement from 4 to 15 CARDS projects, generating a substantial increase in workload. In each of the entities of the Western Balkans there is at least one CARDS project in which ETF participates in the preparation phase. The ETF has provided the Commission with project fiches and/or terms of reference for these projects and has participated in several tender evaluations. In countries where the implementation of CARDS projects has started, such as Bosnia and Herzegovina and FYROM, ETF has provided Commission task managers with advice on the development of the content of the project.

On 30 January 2002 ETF organised a training session for colleagues in EuropeAid on human resource development in relation to the project cycle. Progress reviews on vocational training and labour market reform have also been sent to counterparts in the Commission.

2.2.2. Information gathering and analysis

Using the outcomes of the external evaluation of the Phare Observatories, the ETF has moved towards financing the Observatories on an output/product basis; one of the products prepared in 2002 was the national report on vocational training. After discussions with the Observatories it was decided to move towards a system of three-yearly comprehensive national reports; during the other two years the focus will be on progress and developments during the year. The collection of key indicators on vocational training in the Western Balkans has made substantial progress and led in October to the publication "Key indicators on vocational education and training". In addition, an agreement was made with the Observatories to improve the set of key indicators to be collected and analysed in 2003.

The Serbian Observatory, launched in the first half of 2002, is now in full operation. It has produced several reports, including an extensive report on vocational training in Serbia.

2.2.3. Development activities

In February 2002 the peer review project, a lighter version of the OECD reviews on education, was launched in Ljubljana. In close co-operation with ministries of education and labour, the agreed focus is on the processes of policy implementation, decentralisation and employability. Five peer review teams of EU, Future Member State and Western Balkans experts visited Albania, Croatia, Kosovo, Montenegro and Serbia and prepared reports on the assessment of vocational training reform policy initiatives and recommendations to national policy makers. Early in 2003 these recommendations will be discussed in national workshops, which will lead to the final reports. The project also aims to build capacity and exchange experience and co-operation among vocational training experts, policy makers and other stakeholders; recommendations can provide a valuable contribution to the CARDS programming cycle.

In March 2002 a first meeting of the Teacher and Trainer training (TTT) network in South East Europe was held in Sofia. Representatives from education ministries, teacher training institutes and schools from ten countries agreed on a prominent role for TTT reform in the region in order to build up the TTT network and to exchange experience and ideas on TTT. A Compendium of Good TTT Practice has been published on the ETF web-site. The second meeting of the network will be held in February 2003 in Dubrovnik.

In Bosnia and Herzegovina a project on skills development for SMEs was launched based on the close co-operation already established with the existing CARDS Economic Revitalisation project. Within the companies which participated in the CARDS project, enterprise-based management development and consulting services are addressed. Another SME project has been carried out in Albania with support from the Italian government.

A project on social partnership was implemented on behalf of the Economic and Social Affairs Committee. During several workshops and conferences the role of social partners was strengthened through training in dialogue and negotiation skills at the different levels. In addition a national report on the state of social dialogue across nine countries provides the basis of a cross-country analysis to be published early in 2003.

2.3. Eastern Europe & Central Asia

2.3.1. Support to the Commission

During the course of 2002, at the request of the EuropeAid Co-operation Office, DG External Relations and the delegations, ETF provided support to various stages of the Commission's programming cycle across the Tacis Programme region. The support included: contributions to National Indicative Programmes and Action Programmes (in the Russian Federation, Ukraine and Central Asia); participation in project appraisal missions (in Armenia); drawing up project fiches and terms of reference (in Armenia, the Russian Federation, Ukraine and all Central Asian countries); and participation in tender evaluation (in the Russian Federation).

In addition, the European Commission Delegation in Moscow asked the ETF to contribute to content monitoring of the Delphi II project. The increase in these requests in 2002, also as a result of agreement on a regional framework which outlines the ETF support to the Commission in the region, is expected to have a substantial impact on the Department's workload in 2003.

2.3.2. Information gathering and analysis

The network of National Observatories, established in each of the countries of the Eastern Europe & Central Asia region, acts as the main source of up-to-date information of ETF and provides key indicators and analyses of trends and developments while at the same time disseminating international best practice in the region. Following the external evaluation completed at the end of 2001, the ETF has worked during the past year to develop an overall strategy for the network, with a view to further enhance its impact in the partner countries, bring its activities more in line with Commission policies and priorities and increase sustainability of results.

The strategy development exercise in 2002 has produced a number of important outcomes. The focus and scope of the National Observatory work has been clarified under the form of Country Frameworks for the period 2003-2005, with direct links between Tacis priorities, ETF regional framework and yearly activities of ETF and the Observatories. More attention has been paid to Observatory Steering Committees and to services that the Observatories can offer to a wider range of clients and stakeholders, in support to vocational training and labour market modernisation efforts. Short-term ad-hoc task forces comprised of team leaders from different Observatories and ETF staff were asked to address key strategic issues and make recommendations: on the network's vision and mission; its modus operandi, core products, corporate image of the network; strategies for the dissemination of outputs including the development of a new network website; and a new approach to the collection and analysis of key indicators etc.

2.3.3. Development activities

The final phase of the 3-year bilateral donor-funded Vocational Training Reform project in Ukraine was implemented in 2002. The project has resulted in the development of new curricula ready for implementation in schools, the completion of teacher training courses; and the start of a study on teacher training aimed at producing an updated teacher training handbook. Since the Steering Committee meeting in November 2002 which was also attended by a number of representatives of the Ministry of Education and Science, it has become clear that project has contributed to putting vocational education and training on the political agenda in Ukraine.

The main results of the North West Russia Vocational Training reform project were discussed and validated by the Board of the Ministry of Education. The Board, chaired by Minister of Education Mr Filippov, concluded that the project has been the most significant contribution to the process of modernisation of vocational training during the last 10 years. Through a number of pilot innovations this has fed into the development of comprehensive regional and federal VET policies. The meeting resulted in a decision which commits the Ministry of Education to consolidate and disseminate the project results to all regions of the Russian Federation with a view to strengthening its sustainability and make them available to non-participating actors of the Russian vocational training community.

The on-line course "Consolidating knowledge in the field of project evaluation through eLearning - the EU approach" was delivered by the ETF to a group of 21 Russian, Armenian and Kazakh participants - adult training and education professionals, experienced in project management and implementation at national and international level. Expert trainers shared with participants a range of learning materials which are accessible on the web thanks to dedicated software.

The 'Training for Enterprise Development' cross-country project involved a survey of around 400 SMEs in Kazakhstan, Kyrgyzstan and Uzbekistan including an unprecedented skills audit of over 200 companies in Kyrgyzstan. The findings of these studies laid the ground for a series of practical business training workshops for hundreds of senior managers in the three countries. The final conference of the project took place in Kyrgyzstan in June 2002, in parallel with the regional Advisory Forum and National Observatory network meeting. Participants included representatives of employers organisations, key stakeholders and international donors working in the region. The conference addressed the links between vocational education and training and enterprise development which the ETF has identified as a priority for vocational education reform in the Eastern Europe and Central Asia.

2.4. Candidate countries

2.4.1. Support to the Commission

ETF activities with the Candidate countries during 2002 concentrated mainly on familiarising the countries with EU discussions and policy developments on vocational training and employment. The ETF provided regular updated information to the countries and organised meetings on the state of play of the "Bruges/Copenhagen process" on increased EU co-operation in vocational training. During the second half of 2002 the Candidate countries became full participants in this process.

Examples of meetings in 2002 for the Candidate countries include:

- Conference in January on "Recognition and validation of skills acquired through work experience" in co-operation with the French authorities;

- Seminar on "Mobility and transparency of qualifications" in February;

- Seminar on "Vocational training reform in the context of Lifelong Learning" in February;

- Briefing meeting for FMS on the Bruges/Copenhagen process in September.

In addition the ETF also conducted surveys on the validation of non-formal and informal learning, e-learning and vocational guidance and counselling. Discussions have been held with DG Education & Culture and Cedefop on the development of a knowledge management system and the establishment of a Lifelong Learning Database to contain examples of good practice.

At the request of DG Employment & Social Affairs, monographs on vocational training and employment services were prepared for nine Candidate countries and a preliminary cross-country synthesis report has been published and presented at several conferences. The monographs are used to contribute to monitoring the follow-up of the Joint Assessment Papers for employment policy and for the identification of priorities to be supported by the Social Fund. For Bulgaria, Latvia and Romania, the three remaining countries, monographs are expected to be completed in Spring 2003.

Specific attention has been paid by the ETF to Bulgaria, Romania and Turkey where the ETF supported the implementation of Phare or Meda or pre-accession projects. In Turkey three major projects have been prepared in the field of vocational training and employment and an employment background study has been prepared; this will be discussed in a high level workshop in February 2003. In Romania the ETF carried out an evaluation of a number of human resource development projects under the Phare 1998 "Regional Policy and Cohesion Programme"; the general conclusion is that the projects have had a positive impact on the development of local capacity to implement human resource initiatives. In Bulgaria the Phare Management Training Programme ended with a final conference held on 11 October in Borovets.

An institution building project across the three countries aimed at key stakeholders who are involved in preparing for receipt of European structural funds. The activity provided the opportunity to see how policy and organisation of structural funds operates in an EU Member State; through national workshops these experiences have been shared with other key players.

In Turkey, the preconditions for the start of the Leonardo da Vinci programme have been fulfilled only recently and therefore preparatory measures will start only in 2003.

2.4.2. Information gathering and analysis

The National Observatories in the Candidate countries have participated actively in many of the activities described above and are key intermediaries between ETF and local policy makers. Through an agreement with Cedefop the ETF has arranged for Observatories to participate in Cedefop activities.

2.4.3. Development activities

The ETF, Cedefop and the Danish Ministry of Education organised a conference on "Teachers and trainers in vocational training in the future Member States" in November in Aalborg. The core of the event was the issue of future challenges and priorities including the association of future Member States with the Cedefop Teacher/Trainer network in 2003. In April the ETF-Danish project on Teacher and Trainer Training in Latvia and Lithuania ended with a final conference which was attended by the President of Lithuania.

The project on the development of lifelong learning (LLL) policies at regional level was cancelled due to the lack of co-financing. ETF funds were diverted to the ETF LLL Thematic Group to develop and publish the monographs; for the dissemination of the Slovene Phare VET reform experience to the countries in the Western Balkans; and for a comparative study on vocational training reform in Lithuania and Latvia.

2.5. Technical assistance to the Tempus programme

The ETF continued to provide technical assistance to DG Education and Culture for the Tempus Programme. In 2002, the range of countries eligible to participate in the programme was extended to the following Mediterranean partners: Algeria, Egypt, Jordan, Lebanon, Morocco, the Palestinian Authority, Syria and Tunisia. Israel's participation in the Tempus Programme is possible on a self-funding basis only.

Under the present phase of the Programme, Tempus contributes to the reform and management of higher education institutions through targeted Joint European Projects (JEPs) in clearly specified areas. These include Curriculum Development, University Management, Institution Building and Multiplier projects. In addition, Individual Mobility Grants (IMGs) are available to all partner countries eligible under Tempus III.

2.5.1. Selection of Tempus CARDS, Tacis and MEDA Joint European Projects

In 2002 the deadline for Joint European Projects applications was 15 December 507 JEP applications were received. Of these, 264 involved the Tacis partner countries, 123 the MEDA Partners and 120 the CARDS partner countries.

2.5.2. Selection of Tempus CARDS and Tacis Individual Mobility Grants (IMG)

In 2002 Individual Mobility Grants were amended to include new types of activities such as the preparation of JEPs, attendance at a specific event, or participation in retraining. A new IMG timetable was also established which permits up to three calls per year. For the June 2002 deadline, applicants had the opportunity for the first time to submit application forms on-line.

For the June and October 2002 deadlines a total of 220 applications was submitted of which 86 were for CARDS and 134 for Tacis. 47 CARDS IMGs received financial support totalling 63,042.00 Euro. For Tacis 70 IMGs received financial support totalling 126,241.00 Euro.

Applications from the MEDA Partners will be eligible from the February 2003 call onwards.

2.5.3. Monitoring

Monitoring activities in both Tempus CARDS and Tempus Tacis covered the standard functions of contract management, desk monitoring, preventive monitoring and overall support to running projects.

Annual grants (a total of 825 payments) were issued for current Tempus projects following the assessment of progress reports. Progress reports were assessed by the monitoring desks (a total of 136 reports). Several hundred CARDS and Tacis projects received support and advice.

The ETF provided logistic support and training for a total of 297 project representatives of newly selected CARDS and Tacis projects at two meetings held in Brussels in February and October 2002. Training materials were developed and made available on the web and Tempus contract management documentation developed in co-operation with the Commission.

Monitoring activities also included financial assessment of projects, in particular the financial assessment of Statement of Expenditures (of both Annual and Final Reports - a total of 335 reports); the preparation of files for litigation; and co-ordination of external auditing of projects. During 2002, a major "cleaning up" exercise took place and most of the open and outstanding reports were followed up and closed. This activity concerned all types of projects, including JEPs, IMGs, CMEs CPs and pre- JEPs and all countries in the Phare, CARDS and Tacis regions.

2.5.4. Computer development

Following a thorough analysis, a new Tempus website was developed and launched in May 2002.

Further computer developments were put in place including the development of the Tempus Database (TDB) in order to ensure a structured repository of all key monitoring and payment information for JEP monitoring procedures. Furthermore, security functions were developed in order to control access to the database and ensure the integrity of data.

Business Objects- (BO) was implemented as a reporting and decision support system to allow the retrieval and comparison of project related information on a large scale.

On-line application forms for IMG applicants and an "Expert Call for Applications" were successfully introduced and integrated into the TDB and the Tempus website.

At the end of 2002, initial feasibility studies and actions were launched with DG Education & Culture on the use of the Symmetry system, an IT system developed by the Commission for project and information management.

2.5.5. Information and publications

A new "Guide for Applicants" covering the period 2002-2006 was produced and is available both in hard copy and electronically.

Following the extension of the Tempus Programme to the Mediterranean, a "Tempus MEDA Supplement" was published in the eleven official languages of the EU Member States as well as in Russian and Arabic.

A "Tempus @ 10" study was published to capitalise on and advertise the achievements of the Tempus programme in the 10 Candidate Countries. It demonstrates that, in some cases for more than a decade, the Tempus programme has achieved sound results in assisting these countries in the reform of higher education and in preparing for integration into the European Union.

A "Tempus in the Western Balkans" publication aiming to disseminate the outcomes of three regional Tempus seminars held during late 2000 and 2001 in Sarajevo, Skopje and Tirana was prepared and published during 2002.

Another study was launched in 2002 and addresses university reforms in university management and teaching as well as support for institution building projects in Hungary, Poland, Bulgaria and Romania.

2.5.6. Special events

The Tempus Department of the ETF supported DG Education & Culture in the organisation of Tempus Information Point (TIP) and National Contact Point (NCP) meetings in Brussels in April and October 2002.

The Tempus Department of the ETF was represented at the Tempus Committee meeting organised by the Commission in June 2002. Tempus Department staff were present at several information days and also participated in information campaigns organised by the Commission and partner countries.

3. CO-OPERATION WITH OTHER EU AGENCIES

The ETF continues to work closely with other EU agencies on issues of common interest. The Director attended the two meetings of heads of agencies in 2002 during which items of mutual concern such as governance, funding, personnel and administrative issues were discussed.

For several years there has been close co-operation between the ETF and Cedefop, particularly in the context of work with the Candidate countries. The ETF aligns its activities in these countries with the requirements of the overall accession process, which includes assisting the countries in their preparations for participation in Community Agencies such as Cedefop. During 2002, ETF and Cedefop Governing Boards agreed a list of joint activities for the year 2003 and several joint meetings between the two agencies took place throughout the year.

In 2002 Eurydice, Cedefop and ETF agreed a joint co-operation framework which appears in the annual work programme for 2003 of each organisation. Closer co-operation is necessary not only because the widening of Community activities in the fields of education and vocational training to cover the Candidate countries, but more especially because within Europe these areas are rapidly becoming more integrated.

The ETF co-operates closely with the European Agency for Reconstruction in the Former Yugoslav Republic of Macedonia, Serbia, Montenegro and Kosovo on CARDS projects concerning Human Resource Development. The co-operation involves preparation of project fiches and Terms of Reference, participation in tender evaluations and contributions to project monitoring.

The ETF also co-operates closely with other agencies on a wide number of issues, such as administrative and central services, information & communication strategies, site management & security, recruitment and computer and information technologies. The ETF participates in the Common Support Service Steering Committee consisting of 12 member agencies and institutions which collaborate on the development of the SI2 budgetary and financial management system.

4. FINANCIAL REPORT

4.1. Funding sources

The ETF receives an annual subvention from the European Community budget to cover its administrative costs as well as the cost of operations in the annual work programme. In 2002 the subvention amounted to EUR 16.8 million.

The ETF also continued to manage funding from the European Union's different external assistance programmes. These funds were transferred via conventions signed with the Commission for the management of Phare/CARDS and Tacis programmes on behalf of the Commission. In 2002, the ETF handled around EUR 2.1 million in Phare and Tacis convention funds for vocational education and training projects. The ETF also provides technical assistance to the European Commission for the Tempus programme and managed around EUR 152 million in Tempus Phare funds and EUR 91 million in Tempus Tacis funds.

4.2. Budget execution

Automatic and obligatory increases in personnel costs impacted negatively on the number of staff employed by ETF during 2002 compared to initial plans (-4%) and will also affect staff numbers during 2003. Despite these issues the budget as a whole was executed according to plans.

Some savings were made in meeting expenses and translation costs and were reallocated through an amending budget agreed by the Governing Board in October. The savings came from the cancellation of one meeting of the Governing Board and the proposed meeting of the Advisory Forum Meda Regional Group. An outstanding credit position with the European Translation Centre also released funds.

The details of transfers during 2002 are as follows:

- EUR 20,000 from Chapter 25 (Governing Board meetings) was transferred to Chapter 31 (Work Programme activities) to cover new requests for support from the European Commission in the Meda and Tacis regions;

- EUR 75,000 was transferred from Chapter 30 (item 3040 "Translation Costs") to Chapter 31 (Work Programme activities) for the same purposes as above;

- EUR 60,000 from Chapter 30 (item 3050 Meetings of the Advisory Forum) was transferred to Chapter 31 (Work Programme activities) for the same purposes as above.

The table below shows the state of execution of the budget (in Euro) at 31 December 2002. Note that the figures do not include de-commitments and "regularisations" carried out in 2003 for the preparation of the annual accounts 2002.

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4.3. Procurement

Procurement in the ETF is managed centrally by its Legal Service. In 2002 a total of 73 calls for tender were launched and 113 contracts processed. The number of grants issued was reduced significantly from 68 in 2001 to 20 in 2002. This reduction was mainly due to the fact that the ETF National Observatories were contracted through framework contracts.

The ETF Advisory Committee on Procurement and Contracts (ACPC) met on three occasions in 2002. A total of 7 reports and 10 information sheets were discussed.

4.4. Financial and management systems

The ETF completed the integration between budgetary and general accounting software and launched an automated electronic payment system.

In addition a new application was developed in-house for the management of ETF fixed and non-fixed assets of a non-financial nature. This inventory system is now operational and enables presentation of, and accounting for depreciation of fixed assets, in accordance with Commission Regulation 2909/2000 and in response to recent recommendations from the Court of Auditors.

The budgetary accounting system was further developed in order to allow ETF staff to attach in an electronic format and to every single budget transaction in SI2, all the related supporting documentation. This allows even greater financial discipline, transparency and effectiveness since every financial actor can view on line and in real time, every budget transaction and have access to the underlying supporting documentation.

5. PERSONNEL

At the end of 2002 the ETF employed 94 Temporary Agents. Details of the grading and nationality of staff can be found below.

5.1. Staffing and organisation chart

5.1.1. Temporary agents

5.1.2. Table A: The number of temporary agents in post on 31 December 2002 (by category and nationality)

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Explanatory note:

(1) The ETF "Mid-term perspective on staff resources 2002-2004" (ETF-GB00-043) indicates 105 Temporary Agent (TA) staff for 2002, falling to 99 TA staff from 1 January 2003 onwards.

(2) In mid 2002, 5 additional posts were agreed for 2003 to provide technical assistance to the Tempus Meda programme from 2003 onwards. This raised the total numbers of TA staff to 104 with effect from 1 January 2003. This figure is also in line with the TA staff number for 2003 (104) in the ETF Establishment Plan.

(3) During 2002, 11 Auxiliary Agent contracts covered the shortfall between the 94 TA staff in post and the 105 posts indicated in the "Mid-term perspective on staff resources 2002-2004" pending the appointment of new staff.

5.1.3. Table B: Change in temporary agent staffing profile during 2002

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5.1.4. Table C: The number and type of other staff employed in the ETF at the end of 2002

Local agents // 11

National Experts on secondment // 7

5.2. Personnel initiatives

In 2002 the ETF :

- adopted its Human Resources strategy;

- implemented the new Performance Appraisal System for the ETF staff which is based on individual objectives agreed between the jobholder and the reporting officer, and includes individual competences and training needs;

- adopted a competence map which includes core competence areas for all staff and specific technical competence areas for all functional roles within the ETF ;

- carried out an assessment of individual competences of all staff based on the competence map;

- implemented the annual promotion exercise for the ETF staff;

- implemented the annual training plan for ETF staff.

6. GOVERNING BOARD AND ADVISORY FORUM

6.1. Governing Board

The ETF Governing Board met on 26 November 2002. The meeting was also attended by observers from all Candidate countries.

The Governing Board:

- approved the ETF draft Work Programme for 2003 and the "Rolling Frameworks for Foundation action" in the Western Balkans and the New Independent States 2003-2005;

- approved the proposed Draft Budget 2003 subject to subsequent approval by the Budgetary Authority;

- approved the implementation of Article 21 of the Financial Regulation;

- granted discharge to the Director of the ETF for Budget 2001;

- granted discharge to the Accounting Officer and the Assistant Accounting Officer ETF for operations relating to the revenue and expenditure account for 2001;

- noted forthcoming changes to the ETF Financial Regulation;

- discussed the results of the ETF external evaluation 2002;

- took note of the ETF Human Resource Policy and Development Follow-up;

- noted the ETF financial management reform; and,

- noted the synthesis report of the Candidate Country Monographs.

6.2. Advisory Forum

The principal function of the Advisory Forum is to deliver an opinion to the Governing Board on the ETF draft Work Programme for the following year.

Advisory Forum members are assigned to four Regional Groups which represent Candidate countries; South Eastern Europe; Eastern Europe and Central Asia; and the Mediterranean partners. For the first two years of the Forum's three year life-span each of these Regional Groups meet once each year. In 2003 there will be a plenary meeting in Turin which will bring together all four groups.

During 2002 three Regional Groups met to review progress of ETF strategy and activities in the particular region and to start the development of Work Programme 2003 by offering advice on regional needs. Regional Groups meetings during 2002 took place as follows:

6.2.1. Eastern Europe and Central Asia (EECA) Regional Group-13-15 June -Kyrgyzstan;

The meeting was combined with the annual meeting of the ETF National Observatory network and the final conference of the ETF-funded project "Training for Enterprise Development". Around 100 participants from all EECA countries and the EU attended, making this the largest international event organised by ETF in EECA. The mixture of employers, employer organisations, education and employment policy makers, representatives from international projects, international organisations and experts from the EU and the EECA countries worked well, resulting in a very rich conference.

6.2.2. South Eastern Europe Regional Group - 20-21 June -Montenegro;

The proposed ETF Work Programme 2003 priorities, in particular the emphasis on regional co-operation and the process of cascading of experience from Candidate countries to the Western Balkans gained the support of the Regional Group. Training of teachers and trainers, lifelong learning and proposed initiatives on the structure of national qualification were considered to be most relevant for the region. The combined meeting with the National Observatories was useful for developing links between the Advisory Forum and National Observatories.

6.2.3. Candidate countries Regional Group - 6-8 October, Bulgaria

The Group supported the proposed priorities for the ETF Work Programme 2003, in particular the co-operation arrangements with Cedefop and the proposed cascading of experience from Candidate countries to the Western Balkans.

Participants discussed the possible integration of national Observatories in Candidate countries into the Cedefop REFER network and welcomed the report on the latest EU developments on the vocational training/education and the presentation of key findings of ETF work on Monographs.

ANNEX 1: Table of operational achievements

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ANNEX 2: Table of budgetary and non budgetary resources 2002

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ANNEX 3: Table of Phare and Tacis conventions 2002

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ANNEX 4: Table of Technical Assistance to the Tempus Programme 2002

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Annex 4 (continued) Table of Technical Assistance to the Tempus Programme 2002

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ANNEX 4A: Table of Tempus Grants 2002

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Annex 4A (continued) Table of Tempus Grants 2002

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ANNEX 5: ETF Organigramme - 31 December 2002

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ANNEX 6: Members of the ETF Governing Board 2002

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ANNEX 7: Table of ETF events during 2002

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ANNEX 8: Table of ETF publications during 2002

Annual report 2001

Report on ETF activities and achievements in 2001.

Work programme 2002

Information and full details of ETF future actions as well as priorities for 2002. It reflects the evolutionary process that is currently influencing the scope and content of ETF work.

General information leaflet

Concise information on ETF mission, expertise and services.

Central and Eastern Europe Key Indicators - Summary report

Executive summary of statistical information and indicators on the vocational education and training system and the labour market in the future member states and the western Balkans.

Central and Eastern Europe Key Indicators

Statistical information and indicators on the vocational education and training system and the labour market in the future member states and the western Balkans.

Candidate countries monographs - Summary report

Summary report on the synthesis of the monographs exercise prepared by ETF at the request of the DG Employment and Social Affairs as a contribution to the monitoring of the Joint Assessment Paper on employment priorities. It provides up-to-date information on the development of vocational education and training systems and structures as well as of the public and private employment services in the Candidate countries. The analysis is carried out with reference to the priorities for lifelong learning set out by the European Union.

The challenges of lifelong learning - Report of a seminar involving Eastern Europe and Central Asia

Outcomes of an international seminar held in Nyköping (Sweden) in February 2002 where the conceptual aspects of lifelong learning in Eastern Europe and Central Asia were discussed. The report aims to present and explain the concept of lifelong learning to experts from the education, training and labour market sectors as well as to explain the current state of play and relevance of this topics in these countries.

Innovative practices in trainer and teacher training - Maghreb (printed in French)

Strategic recommendations for trainer and teacher training in the Maghreb region.

Overview of vocational education and training and its relevance to the labour market - Mediterranean region

Series of reports produced by the ETF at the request of the European Commission that describe the state of vocational education and training systems in the countries of the Mediterranean region. These reports not only aims to give a full survey of the national vocational education and training system, but also indicates the key challenges the systems face in a wider socio-economic development strategy. They also analyse the links of the vocational education and training systems with the labour market and the development of workforce skills.

Vocational education and training against social exclusion

This series of studies conducted in central and eastern European countries attempts to alert national authorities to vocational education and training as a way of combating social exclusion. The studies gather and analyse the qualitative and quantitative characteristics of the groups affected by social exclusion with the aim to: i) evaluate the impact of macroeconomic development on social exclusion and poverty; ii) identify groups with long-term and newly emerging risks of social exclusion and poverty; iii) evaluate existing policies, social assistance and labour market programmes for support of these risk groups; and iv) elaborate pilot project proposals for reintegration of the target groups.

Human resources in the context of regional development - company skills survey

The aim of the project discussed in this series of reports has been to: assist national observatories and regional representatives in central and eastern European countries undertake an in-depth demand-side qualitative assessment of emerging regional small and medium-sized enterprises skill needs; examine demand-side perspectives in the context of local supply-side infrastructure; and prepare the context for development of intervention strategies. The exercise has covered companies in a variety of sectors across five different regions of Czech Republic, Estonia, Hungary, Lithuania and Poland within economies that are at a different stage of the transition process.

A management tool kit on training needs assessment and programme design

An integrated resource for management development in transition countries, this tool kit on training needs assessment and programme design is the result of a project that the ETF has conducted in Ukraine, Kazakhstan and Kyrgyzstan, which has brought training providers and companies together. The management tool kit is intended as a planning resource for corporate managers, trainers and consultants to support the design and implementation of in-company management development and wider strategic human resources management programmes. The tool kit has been developed for use in transition or developing economies, and, specifically, for companies operating in the new independent states.

VET management report - NIS (modules 1 and 2)

Manual on the management of vocational education and training schools aimed at VET administrators, ministry officials, regional authorities and experts involved in the planning and management of vocational education and training systems in Eastern Europe and Central Asia. The first volume aims to describe the main features of vocational education and training as an object of management. It looks into issues such as the production of services in VET; VET as a field of state governance; VET as a field of market economy; and modernisation of management methods and organisational structures in VET. The second volume presents the major planning steps in VET starting from organisational preparation and prognostic analysis to monitoring and assessment and how this leads to a new planning cycle. The learning elements cover issues such as how to organise the planning process, assessment of the situation and forecasting. The two volumes are in Russian, a summary is provided in English.

Factsheets central and eastern Europe

A series of factsheets providing key information on vocational education and training in central and eastern Europe.

National observatory country reports (Candidate countries, Western Balkans, Eastern Europe and Central Asia)

A series of reports produced by the National Observatories. The reports are written according to a structure established by the ETF and contained detailed information on the vocational education and training systems in the country concerned.

ANNEX 9: Glossary of country codes

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