Special Report No 1/2011 ‘Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?’
Date: 2011-04-01
Institutions: European Court of Auditors
Subjects: Commission Delegation, European Commission, administration of the Institutions, aid policy, cooperation policy, devolution, division of powers, interinstitutional relations

EUROPEAN
COURT OF AUDITORS

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HAS THE DEVOLUTION OF THE COMMISSION'S 
MANAGEMENT OF EXTERNAL ASSISTANCE 
FROM ITS HEADQUARTERS TO ITS DELEGATIONS 
LED TO IMPROVED AID DELIVERY?

EN

 
 
 
 
Special Report No 1 

 2011

HAS THE DEVOLUTION 
OF THE COMMISSION‘S 
MANAGEMENT OF 
EXTERNAL ASSISTANCE 
FROM ITS HEADQUARTERS 
TO ITS DELEGATIONS 
LED TO IMPROVED AID 
DELIVERY?

(pursuant to Article 287(4), second subparagraph, TFEU)

EUROPEAN COURT OF AUDITORS

EUROPEAN COURT OF AUDITORS
12, rue Alcide De Gasperi
1615 Luxembourg
LUXEMBOURG

Tel. +352 4398-1
Fax +352 4398-46410
E-mail: euraud@eca.europa.eu
Internet: http://www.eca.europa.eu

Special Report No 1 

 2011

A great deal of additional information on the European Union is available on the Internet. 

It can be accessed through the Europa server (http://europa.eu).

Cataloguing data can be found at the end of this publication

Luxembourg: Publications Office of the European Union, 2011

ISBN 978-92-9237-050-3

doi:10.2865/16300

© European Union, 2011

Reproduction is authorised provided the source is acknowledged.

Printed in Luxembourg

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

CONTENTS

3

Paragraph

I–V	

1–5	

6–9	

ACRONYMS	AND	ABBREVIATIONS

EXECUTIVE	SUMMARY

INTRODUCTION

AUDIT	SCOPE	AND	APPROACH

10–60	

OBSERVATIONS

10–38	

	DEVOLUTION	HAS	CONTRIBUTED	TO	AN	OVERALL	IMPROVEMENT	IN	AID	DELIVERY	

10–19 

20–31 

 DEVOLUTION HAS CONTRIBUTED TO IMPROVING THE SPEED OF DELIVERY, THE COMMISSION BEING ABLE TO 
BOTH COMMIT AND ALSO DISBURSE INCREASING VOLUMES OF FUNDING

 ALTHOUGH SOME INDICATORS POINT TO IMPROVEMENTS IN THE QUALITY OF AID, THE COMMISSION‘S 
SYSTEMS FOR ASSESSING QUALITY DO NOT ALLOW FIRM CONCLUSIONS TO BE DRAWN

32–38 

THE FINANCIAL MANAGEMENT PROCEDURES IMPLEMENTED SINCE DEVOLUTION ARE INCREASINGLY ROBUST

39–60	

40–49 

50–53 

54–60 

	WHILE	DEVOLUTION	HAS	CONTRIBUTED	TO	IMPROVING	THE	AID	DELIVERY,	IT	IS	NOT	BRINGING	
ALL	THE	BENEFITS	IT	COULD,	ESPECIALLY	IN	RELATION	TO	IMPROVING	QUALITY

 THERE IS STILL SCOPE FOR THE COMMISSION TO IMPROVE ITS ALLOCATION AND USE OF HUMAN 
RESOURCES IN DELEGATIONS

 THE COMMISSION‘S HEADQUARTERS HAVE ONLY A LIMITED CAPACITY TO SUPPORT DELEGATIONS IN 
IMPROVING QUALITY DESPITE THE SIGNIFICANT EFFORTS MADE BY EUROPEAID

 MONITORING, REPORTING AND EVALUATION ARE NOT YET SUFFICIENTLY DEVELOPED IN RELATION TO AID 
QUALITY AND FINANCIAL MANAGEMENT

61–69	

CONCLUSIONS	AND	RECOMMENDATIONS

61–63	

	OVERALL	CONCLUSIONS

64–69	

	SPECIFIC	CONCLUSIONS	AND	RECOMMENDATIONS

ANNEX	 —	

	RECENT	PERFORMANCE	AUDITS	(2007-10)	OF	DEVELOPMENT	ASSISTANCE	BY	THE		
EUROPEAN	COURT	OF	AUDITORS

REPLY	OF	THE	COMMISSION

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

	
	
Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

ACRONYMS AND ABBREVIATIONS

5

ACP	countries: African, Caribbean, Pacific countries

CRIS: Common RELEX Information System

CSP: Country strategy paper

EAMR: External Assistance Management Report

EDF: European Development Fund

EEAS: European External Action Service

ENPI: European Neighbourhood and Partnership Instrument

EuropeAid: EuropeAid Cooperation Office

FLEX: EDF support for fluctuation in export earnings

ROM: Results oriented monitoring

SPSP: Sector policy support programme

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

6

EXECUTIVE  
SUMMARY

I.
T h e   E u r o p e a n   C o u r t   o f   A u d i t o r s   c a r r i e d 
o u t   a n   a u d i t   t o   a s s e s s   w h e t h e r   t h e   m a j o r 
d e vo l u t i o n   o f   re s p o n s i b i l i t i e s   fo r   t h e   m a n -
a g e m e nt   o f   ex te r n a l   a s s i s t a n ce   f ro m   Eu ro -
p e a n   Co m m i s s i o n   h e a d q u a r te r s   to   i t s   d e l -
e g at i o n s   a ro u n d   t h e   wo r l d   h a d   re s u l te d   i n 
i m p r o v e d   a i d   d e l i v e r y.   T h e   a u d i t   f o c u s e d 
o n   t h re e   c e n t r a l   o b j e c t i ve s   o f   d e vo l u t i o n : 
t o   i n c r e a s e   t h e   s p e e d   o f   a i d   d e l i v e r y,   t o 
i m p r o v e   t h e   q u a l i t y   o f   a i d ,   a n d   t o   m a k e 
f i n a n c i a l   m a n a g e m e n t   p r o c e d u r e s   m o r e 
robust.

II.
T h e   a u d i t   c o v e r e d   t h e   p e r i o d   s i n c e   t h e 
c o m p l e t i o n   o f   t h e   d e v o l u t i o n   p r o c e s s   i n 
2 0 0 4   u n t i l   2 0 0 9 .   T h e   t i m i n g   o f   t h e   a u d i t 
i s   p a r t i c u l a r l y   a p p r o p r i a t e   a s   t h e   E u r o -
p e a n   U n i o n   i s   c u r r e n t l y   i n   t h e   p r o c e s s   o f 
an ot he r maj or refor m  wh ich  has  im por ta nt 
implications for the Commission‘s manage -
m e n t   o f   E u r o p e a n   U n i o n   e x t e r n a l   a s s i s t -
a n c e,   t h e   c r e a t i o n   o f   t h e   E u r o p e a n   E x t e r -
n a l   A c t i o n   S e r v i c e   ( E E A S )   i n   a c c o r d a n c e 
with  th e Treat y of Lisbon .

III.
T h e   Co u r t   fo u n d   t h a t   d e vo l u t i o n   h a s   c o n-
tr ibuted to an improvement in aid deliver y. 
I n relation to the three specific objec tives:

( a)  

T h e   C o m m i s s i o n   h a s   s p e e d e d   u p   i t s 
d e l i v e r y   o f   a i d ,   b o t h   c o m m i t t i n g   a n 
i n c r e a s e d   a m o u n t   o f   f u n d s   t o   n e w   a i d 
i n t e r v e n t i o n s   a n d   s p e n d i n g   t h i s   a d d i -
t i o n a l   f u n d i n g   s u f f i c i e n t l y   q u i c k l y   t o 
a v o i d   t h e   b u i l d - u p   o f   a   b a c k l o g   o f   u n -
spent f un ds.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

77

EXECUTIVE 
SUMMARY

( b)  

Th e   ro l e   o f   t h e   Eu ro p e Ai d   Co o p e rat i o n 
O f f i c e   ( E u r o p e A i d )   i n   p r o v i d i n g   s u p -
por t to de leg ation s is  h ampe red  by  th e 
h i g h   t u r n ove r   a m o n g   i t s   c o n t r a c t   s t a f f 
w h i c h   m a k e s   u p   4 0  %   o f   i t s   w o r k fo r c e. 
T h i s   m a k e s   i t   d i f f i c u l t   t o   b u i l d   u p   t h e 
re q u i re d   e x p e r t i s e,   c a u s e s   a   l o s s   o f   i n-
st itutional me mor y and redu ces  t he  ef -
ficien c y  of ope ration s.

( c)  

D e l e g a t i o n s   h a v e   n o t   c a r r i e d   o u t   s u f -
ficient on-the -spot technical and finan-
c i a l   m o n i t o r i n g   o f   a i d   i n t e r v e n t i o n s , 
a l t h o u g h   t h e   g r e a t e r   o p p o r t u n i t y   f o r 
such  monitor in g  was  one  of   th e  pote n-
t i a l   b e n e f i t s   o f   d e v o l u t i o n .   R e p o r t i n g 
b y   d e l e g a t i o n s   t o   E u r o p e A i d   d o e s   n o t 
adequately provide feedback on results 
o r   o n   t h e   s o u n d n e s s   o f   f i n a n c i a l   m a n -
age ment systems.

V.
The repor t concludes with a series of recom -
mendations, which are designed to improve 
t h e   b e n e f i t s   t h e   C o m m i s s i o n   c a n   d e r i v e 
from devolution.

( b) 

There are some indications that devolu-
t i o n   h a s   c o n t r i b u t e d   t o   i m p r o v i n g   t h e 
qualit y of aid in ter ms of better results. 
I n   p a r t i c u l a r,   Co m m i s s i o n   a s s e s s m e n t s 
s u g g e s t   t h a t   t h e   n u m b e r   o f   p o o r l y 
 p e r fo r m i n g   p ro j e c t s   h a s   f a l l e n   a n d   t h e 
r e l e v a n c e   o f   p r o j e c t s   h a s   i n c r e a s e d . 
Howeve r, asses sing th e qu al it y of  aid  i s 
a difficult process and the Commission’s 
cur rent  systems are no t yet su ff i c ie nt ly 
develo ped  fo r t his p u r p o se.

( c) 

The Commission has steadily introduced 
impor tant improvements to its financial 
m a n a g e m e n t   s i n c e   d e vo l u t i o n ,   e v e n   i f 
some weak nesses  remain .

IV.
D e s p i t e   t h e s e   i m p r o v e m e n t s   t h e   a u d i t 
h i g h l i g hte d   a   n u m b e r   o f   i s s u e s   w h i c h   p re -
v e n t   t h e   C o m m i s s i o n   f r o m   r e a l i s i n g   t h e 
full ben efit s o f devo l u tion.

( a) 

Th e re   i s   s t i l l   s co p e   fo r   t h e   Co m m i s s i o n 
to improve its allocation and use of hu -
m a n   r e s o u r c e s   i n   d e l e g a t i o n s .   I n   t h i s 
respec t, key issues identified by the au -
dit  inc lu ded  t he r ight  b al ance b et we e n 
s t a f f   wo r k i n g   o n   a i d   a n d   s t a f f   wo r k i n g 
on political and trade matters, the sk ills 
profile of st af f, an d the high num be r  of 
v a c a n c i e s   a m o n g   c o n t r a c t   s t a f f .   T h e 
number of sec tors in which delegations 
continued to be involved, despite steps 
t o   s t r e n g t h e n   d o n o r   c o o r d i n a t i o n ,   i n -
crea se s th e wo r k l o ad of del egatio ns.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

INTRODUCTION

8

1.	

2.	

The Eu ro pe an Unio n is the l arges t aid  d on or  i n th e  wor ld  an d 
t h e   Eu ro p e a n   Co m m i s s i o n   m a n a g e s   a   s i gn i f i c a n t   p a r t   o f   t h i s 
aid, its  s pe nding  on g lob al  aid operat ion s  in  2 0 0 9  amounti ng 
to 8 440  mil lio n eu ro 1.  Ap p roximately 8 0 % of its  aid is imple -
mented through a devolved management system. ‘Devolution’ 
i nvo l ve s   t h e   d e l e g a t i o n   o f   t a s k s   a n d   re s p o n s i b i l i t i e s   fo r   t h e 
m a n a g e m e nt   o f   Eu ro p e a n   Co m m i s s i o n   f i n a n ce d   co o p e rat i o n 
a c t i v i t i e s   f r o m   t h e   E u r o p e a n   C o m m i s s i o n’s   h e a d q u a r t e r s   t o 
111 offices (‘delegations’) in par tner countries. Devolution was 
i n t ro d u c e d   o ve r   t h e   p e r i o d   2 0 0 2   t o   2 0 0 4   t o   s u p p o r t   a   w i d e r 
reform launched in 2000 to improve the Commission’s manage-
ment of ex ter nal assistance. The objec tives of devolution and 
the overall reform process were principally to speed up imple -
mentatio n, inc re ase qu alit y  and  e ns ure  robust  proce dure s.

1  5 371 million euro was spent 
from the EU general budget 

and 3 069 million euro from the 

European Development Funds 

(EDFs). 

2  Special Report No 10/2004 on 
the devolution of EC external aid 

management to the Commission 

delegations (OJ C 72, 22.3.2005).

I n   2 0 0 4   t h e   C o u r t   i s s u e d   a   S p e c i a l   R e p o r t   o n  ‘ T h e   d e v o l u -
tio n o f EC  ex ter n al  aid manageme nt to th e  Com mi ss ion’s de l -
eg at ion s’ 2.  The rep o r t  focu sed on  t wo mai n  i ss ues :  fi r s tl y,  th e 
Commission’s management of the devolution process and, sec -
o n d l y,   w h e t h e r   t h e   d e vo l u t i o n   o f   m a n a g e m e nt   h a d   a c h i e ve d 
i t s   o b j e c t i ve s.  Th e   re p o r t   m a d e   a   p o s i t i ve   a s s e s s m e n t   o f   t h e 
Commission’s management of the devolution process but con-
cluded that in 2004 it was still too early to assess whether the 
inte nded  re su lt s o f devo l u tion  h ad be en  a chi eve d.

3.	

The main features of devolution, which has now been in opera-
t i o n   fo r   m o re   t h a n   f i ve   ye a r s,   a re   a s   fo l l ows   ( s e e   a l s o   Fi g u r e 
1).

( a) 

D e l e g at i o n s   a re   re s p o n s i b l e   fo r   t h e   i d e nt i f i c at i o n ,   fo r m u -
l at io n  and  im plementat ion   of   aid  inter ve nt ion s,   in cl ud in g 
the contrac ting and payment stages. Heads of delegations 
h ave   b e e n   m a d e   s u b - a u t h o r i s i n g   o f f i ce r s   a n d   d e l e g at i o n s 
have  b ot h o p eratio ns  and fin an ce  s ec t ion s.

( b) 

E u r o p e A i d   r e m a i n s   r e s p o n s i b l e   f o r   t h e   f i n a l i s a t i o n   a n d 
m o d i f i c a t i o n   o f   f i n a n c i n g   d e c i s i o n s   a n d   f i n a n c i n g   a g re e -
ments while the preparator y work is carried out by delega-
t ion s.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

9

( c) 

EuropeAid suppor ts delegations by carr ying out reviews of 
the qualit y of proposed aid inter ventions at the end of the 
identification and formulation stages and provides ongoing 
s u p p o r t   at   t h e   re q u e s t   o f   t h e   d e l e g at i o n s   t h ro u g h o u t   t h e 
l ife time  of e ach aid inter vention .

( d) 

W h i l e   d e l e g a t i o n s   a r e   r e s p o n s i b l e   f o r   t h e   t e c h n i c a l   a n d 
f i n a n c i a l   m o n i t o r i n g   a n d   e v a l u a t i o n   o f   i n d i v i d u a l   a i d   i n -
ter ventions, EuropeAid is responsible for the overall moni -
to r i n g   a n d   e v a l u a t i o n   o f   t h e   i m p l e m e n t a t i o n   o f   t h e   Co m -
mis sio n’s  devel o p ment  as sis tan ce.

( e) 

T h e   p r o g r a m m i n g   o f   a s s i s t a n c e   —   t h e   e s t a b l i s h m e n t   o f 
multiannual cooperation strategies with par tner countr ies 
and the allocation of resources to suppor t them — has not 
been devolved. The Commission headquar ters have contin -
ued to be responsible for this 3 although delegations play a 
gre ate r par t  in th e p rocess  th an be fore  d evol uti on .

3  The Development DG 
has been responsible for 

programming of assistance in 

ACP countries and the External 

Relations DG for programming 

of assistance in other countries.

4  The Accra Agenda for Action 
was drawn up at a meeting of 

partner countries and donors 

in Accra in September 2008 as 

part of the review of progress in 

implementing the commitments 

of the 2005 Paris Declaration on 

Aid Effectiveness.

5  Article 27(3) of the Treaty on 
European Union as amended by 

the Treaty of Lisbon.

4.	

5.	

S i n ce   t h e   m a j o r   d e vo l u t i o n   o f   re s p o n s i b i l i t i e s   f ro m   Co m m i s -
s i o n   h e a d q u a r t e r s   t o   d e l e g a t i o n s   f r o m   2 0 0 2   t o   2 0 0 4 ,   t h e r e 
h a v e   o n l y   b e e n   m i n o r   f u r t h e r   t r a n s f e r s   o f   r e s p o n s i b i l i t i e s . 
N e ve r t h e l e s s   i n   l i n e   w i t h   t h e   2 0 0 8   Ac c r a   Ag e n d a   fo r   Ac t i o n 4 
the Commission, along with other donors has committed itself 
to t he  p r incip l e of  fur th er devol ut ion  of  re spon s ibi lit ie s f rom 
headquar ters to their offices in par tner countr ies to make aid 
mo re  res po nsive to t he need s of  t h e l atte r.

I n the most significant refor m to the management of ex ter nal 
a s s i s t a n c e   s i n c e   d e vo l u t i o n ,   u n d e r   t h e  Tre a t y   o f   L i s b o n ,   t h e 
E u ro p e a n   U n i o n   i s   c r e a t i n g   a   n e w   E u r o p e a n   E x t e r n a l   Ac t i o n 
S e r v i c e   ( E E A S ) 5.   Pr e p a r a t i o n s   fo r   t h e   s e t t i n g   u p   o f   t h e   E E A S 
w e r e   c o n t i n u i n g   a t   t h e   t i m e   o f   t h e   a u d i t .   D e l e g a t i o n s   w i l l 
rep or t  to the EE A S an d w il l  have a s tron g e r  poli ti cal an d di p -
lomatic role than in the past, while remaining responsible for 
t h e   i m p l e m e n t a t i o n   o f   d e v e l o p m e n t   a s s i s t a n c e   f r o m   t h e   E U 
budg et.  Fo r t he devel o p ment as si st an ce  par t of  t he ir  re spon -
sib ilit ies, heads  o f del egat io n s wil l conti nue  a s s ubd ele g ate d 
authorising officers to repor t to EuropeAid while repor ting to 
the  EEA S fo r the ir o ther  func tions.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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F I G U R E 	 1

D I V I S I O N 	 O F 	 R E S P O N S I B I L I T I E S 	 B E T W E E N 	 H E A D Q UA R T E R S	 	
A N D 	 D E L E G AT I O N S 	 I N 	T H E 	 CO M M I S S I O N ' S 	 D E V O LV E D	
M A N AG E M E N T 	 S YS T E M

Commission  
headquarters

Programming

Country strategy  
paper 

HQ support

EU delegations

Input to  
the programming 
exercise

Project/programme identification

Quality support group 

Identification fiche 

HQ support

Project/programme formulation

Quality support group

Project/programme 
proposals

Fin. decision
Fin. agreement

Project/programme implementation

HQ support

Overall monitoring of aid 
implementation

Contracting

Disbursement

Monitoring

Reporting

Geographical, thematic/sectorial 
evaluation

Project/programme evaluation

 Compulsory activity 

 Ad-hoc activity

Source: European Court of Auditors’ analysis based on Commission’s strategic documents.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

 
AUDIT SCOPE AND APPROACH

11

6.	

The  aud it  set  o u t to ans wer  t he  overall  ques ti on :

‘ H a s   t h e   d e vo l u t i o n   o f   t h e   Co m m i s s i o n ‘s   m a n a g e m e n t   o f   e x-
ter nal  ass is t ance fro m its h eadquar te r s  to  its  d ele g ati ons  le d 
to  imp rove d aid del iver y ?’

This overall question was addressed by examining three more 
sp ecif ic qu est io n s.

( a) 

H a s   d e v o l u t i o n   l e d   t o   i m p r o v e m e n t s   i n   t h e   s p e e d   o f   a i d 
de liver y ?

6  The Enlargement DG was not 
included within the scope of this 

audit.

( b) 
( c) 

H as d evo lu tio n l ed to  improvem e nt s  in  t he  quali t y  of  ai d?

H a v e   r o b u s t   f i n a n c i a l   m a n a g e m e n t   p r o c e d u r e s   b e e n   i m -
p l eme nted?

7.	

8.	

9.	

The audit focused on the per iod since 2004, the year in which 
the process of introducing devolution was completed and the 
ye a r   o f   t h e   Co u r t ’s   p re v i o u s   re p o r t   o n   d e vo l u t i o n .  T h e   a u d i t 
was car r ied out from mid-2009 to mid-2010. I t focused on the 
ro l e   o f   Eu ro p e Ai d   a n d   t h e   d e l e g at i o n s   a n d   d i d   n o t   cove r   t h e 
programming phase and the roles of the Development DG and  
External Relations DG 6. I t examined the Commission’s devolved 
manag e ment   system  t hro ug h  doc ume ntar y   re vi ew   a nd  i nte r -
views with key staff in EuropeAid. To assess the func tioning of 
the system at delegation level, the audit also involved visits to 
five par tner countries (Colombia, Ecuador, Ethiopia, Indonesia, 
Tunis ia). I n ad ditio n,  t he au dit d re w on  obs er vati ons  re lat in g 
to the devolved management system contained in the Cour t ’s 
own Annual Repor ts and Special Repor ts produced since 2004.

T h e   f i r s t   p a r t   o f   t h e   r e p o r t   e x a m i n e s   w h e t h e r   a n d   t o   w h a t 
e x t e n t   a i d   d e l i v e r y   h a s   i m p r o v e d .  W h i l e   i t   i s   n o t   fe a s i b l e   t o 
a s s e s s   e x a c t l y   h ow   f a r   a ny   i m p rove m e n t s   c a n   b e   s p e c i f i c a l l y 
attr ibuted to devolution, the audit sought to identify aspec ts 
o f   t h e   d e vo l ve d   m a n a g e m e n t   s y s t e m   w h i c h   h a d   p a r t i c u l a r l y 
contr ib uted to imp rovements.

The second par t of the repor t addresses aspec ts of the devolu-
tion which the audit identified as areas where the Commission 
manag e ment  need ed to  b e stren g th e ne d. Th e f in al s ec ti on  of 
the   rep o r t   p resents  recomm endat ion s   on   h ow  to  do  th i s.  Th e 
planned reorganisation of EuropeAid following the establish-
m e n t   o f   t h e   E E A S   p rov i d e s   a n   o p p o r t u n i t y   fo r   i m p l e m e nt i n g 
the se  re co mmendations.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

 
 
OBSERVATIONS

12

D E V O LU T I O N 	 H A S 	 CO N T R I B U T E D 	TO 	 A N	
O V E R A L L 	 I M P R O V E M E N T 	 I N 	 A I D 	 D E L I V E R Y

D E V O LU T I O N 	 H A S 	 CO N T R I B U T E D 	TO 	 I M P R O V I N G 	T H E	
S P E E D 	 O F 	 D E L I V E R Y,	T H E 	 CO M M I S S I O N 	 B E I N G 	 A B L E	
TO 	 B OT H 	 CO M M I T 	 A N D 	 A L S O 	 D I S B U R S E 	 I N C R E A S I N G	
V O LU M E S 	 O F 	 F U N D I N G

10.   D u r i n g   t h e   1 9 9 0 s   t h e   Co m m i s s i o n   s t r u g g l e d   to   s p e n d   i t s   d e -
ve l o p m e nt   a s s i s t a n ce   b u d g e t   w h i c h   m o re   t h a n   d o u b l e d   ove r 
the per iod. This led to a substantial back log of unspent fund -
i n g.   I m p rov i n g   t h e   s p e e d   o f   a i d   d e l i ve r y   wa s   t h e re fo re   a   k e y 
ob jec tive  o f de vo l u tion.

11.  

To assess whether the speed of aid deliver y had increased, the 
audit   examined   the  Commis sion’s   pe r for m an ce   us in g   th e   k e y 
financial indicators established by EuropeAid (see Box 1). The 
audit ’s assessment included whether the indicators were based 
o n   re l i a b l e   d a t a   a n d   to g e t h e r   g ave   a   co m p re h e n s i ve   p i c t u re 
of  t he sp ee d of aid del iver y.  The  a ud it  al so soug ht to ide nti fy 
fac to rs  which had  in fl uenced th e  spe e d of  ai d d el iver y.

B O X 	 1

K E Y 	 F I N A N C I A L 	 D ATA 	 I N D I C ATO R S 	 U S E D 	 BY 	 E U R O P E A I D

The following speed-related indicators form part of the EuropeAid Indicators Report which is pre -
sented three times a year to the External Relations Commissioners’ group:

(a)

(b)

the annual amount of aid funding committed, contracted and paid;

level of ‘old’ and ‘dormant’ commitments. This indicator measures how far interventions have 
significant delays. ‘Old’ commitments are those commitments which have been open for more 
than six years. ‘Dormant’ commitments are those commitments which are less than five years old 
which have had no financial transactions over the last 24 months;

(c)

contracting on financing agreements subject to the so-called ‘D + 3’ rule. This indicator also relates 
to the speed with which aid interventions are implemented, focusing on the risk that interventions 
will lose funds if they are not contracted within three years of the financing agreement signature.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

 
 
 
13

12.  

13.  

T h e   a u d i t   c o n c l u d e d   t h a t   t h e   f i n a n c i a l   i n fo r m a t i o n   u s e d   fo r 
t h e   i n d i c a to r s   w a s   re l i a b l e   a n d   t h a t ,   ove r a l l,   t h e re   h a d   b e e n 
a n   i n c r e a s e   i n   t h e   s p e e d   o f   a i d   d e l i v e r y.  T h e   a u d i t ’s   c o n c l u -
s i o n   o n   t h e   re l i a b i l i t y   o f   t h e   f i n a n c i a l   i n fo r m a t i o n   i s   l a r g e l y 
based on the work carried out in the framework of the Cour t ’s 
financ ial   aud it s. Th e  fo l l ow ing  paragraph s   se t  out  th e   a ud it ’s 
as s essm ent  co ncer nin g the in cre as e  in  s pee d.

T h e   v o l u m e   o f   a i d   u n d e r   i m p l e m e n t a t i o n   w a s   s i g n i f i c a n t l y 
hi gh er  in  2009  than  in   2 00 4. Th e   amount  of   de vel opment  ai d 
com mit te d in 20 09  was 42 % hig her  t han  in  2 004 , t he amou nt 
contrac ted in 2009 increased by 45 % compared with 2004 and 
payments rose by 30 % over the same period. While there have 
been some fluc tuations in amounts of commitments, contrac ts 
an d  p ayments  b et ween  th e  year s  ( se e  Fi gu re  2 ) ,  th e  under ly-
in g t rend has  be en c l ear l y u pwa rds.

F I G U R E 	 2

A M O U N T 	 O F 	 E X T E R N A L 	 A S S I S TA N C E 	 CO M M I T T E D,	 CO N T R AC T E D 	 A N D 	 PA I D	
20 04 – 09

)
o
r
u
e
n
o

i
l
l
i

m

(
t
n
u
o
m
A

10 000

8 000

6 000

4 000

2 000

0

2004

2005

2006

2007

2008

2009

Commitments

Source: EuropeAid Indicators Reports.

Year

Contracts

Payments

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

 
 
14

14.   Despite the increasing volume of aid, the Commission was able 
in  20 09 to b r ing  d ow n t he volume  of old  commi tm ents  to th e 
l e ve l   o f   2 0 0 4 .  Wh i l e   t h e   f i g u re   h a d   b e e n   a p p rox i m ate l y   5 0  % 
h i g h e r   i n   t h e   ye a r s   2 0 0 6   t o   2 0 0 8   t h a n   i n   2 0 0 4 ,   t h i s   b u i l d - u p 
of uncompleted aid inter ventions was eliminated in 2009. The 
volume of dormant commitments fell over the same period by 
alm os t   25  %  (s ee   Figu r e  3 ).  Th is  indic ates  th at  fewer   new  a id 
inte r ve nt io ns co mmitted are expe r i en c in g  s ign i fi cant de lays.

15.  

T h e re   h a s   n e ve r t h e l e s s   b e e n   a   s m a l l   d e c l i n e   i n   t h e   s p e e d   a t 
which commitments have been contrac ted since 2004 (see key 
indicator, Box 1 (c)). Whereas approximately 4 % of the amount 
o f  2 00 4   co mm i t m e nt s   were   u n cont rac ted   by   2 0 0 7   a nd   t h e re -
fore could no longer be used, the corresponding figure in 2009 
for 2006  com mitments was 6  %.

F I G U R E 	 3

A M O U N T 	 O F 	 O L D 	 A N D 	 D O R M A N T 	 CO M M I T M E N T S 	2004 – 09

)
o
r
u
e
n
o

i
l
l
i

m

(
t
n
u
o
m
A

3 500

3 000

2 500

2 000

1 500

1 000

500

0

2004

2005

2006

2007

2008

2009

Year

Old commitments

Dormant commitments

Source: EuropeAid Indicators Reports.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

 
 
16.  

17.  

15

The Cour t ’s recent Annual R epor ts largely confir m the overall 
im p rovement  in  the  sp eed  of   aid   d el ive r y   compa red   wit h  t he 
sit uatio n  b efo re  d evo lut io n   whe re   t he   Cour t  was   pa r ti c ul ar l y 
critical of the build-up in unspent funding, notably in relation 
to  the  EDF.

7  See Special Report No 
10/2008: EC development 

assistance to health services  

in Sub-Saharan Africa 

(paragraphs 26 and 27).

8 

In 2008 approximately 16 % 

(300 million euro) of the EDF 

was contracted to be disbursed 

through this mechanism (see 

AIDCO Annual Activity Report  

for 2008, Annex 5).

T h e   C o u r t ’s   m a i n   c o n c e r n   w i t h   t h e   c o m p r e h e n s i v e n e s s   o f 
the   in dicato rs  u sed  is  th at  th ey  l arg ely   focus  on   t he   spe ed   of 
budget execution. However, budget execution indicators over-
state the speed of ac tual aid implementation and insufficient 
u s e   i s   m a d e   o f   o t h e r   i n d i c ato r s   to   m o n i to r   t h e   t i m e   re q u i re d 
for  aid  impl eme nt atio n.  This  is  a   par ti c ula r ly   impor tant  is sue 
f o r   s o m e   o f   t h e   C o m m i s s i o n’s   a i d   m o d a l i t i e s   w h i c h   i n v o l v e 
fun ds be in g p aid into  inter medi ate account s be fore  fi n al uti-
lis at io n. For examp l e:

( a) 

A s   m u c h   a s   4 5  %   o f   t h e   d e ve l o p m e n t   a s s i s t a n c e   f ro m   t h e 
E D F   a n d   2 5  %   f ro m   t h e   g e n e r a l   b u d g e t   i s   p r o g r a m m e d   i n 
c o u n t r y   s t r a t e g y   p a p e r s   t o   b e   d i s b u r s e d   a s   b u d g e t   s u p -
por t over the period 2007–13. Although for the Commission 
i t s   t r a n s fe r   o f   t h i s   f u n d i n g   to   t h e   t re a s u r y   a c c o u n t   o f   t h e 
par tner countr y is the final payment, some time may elapse 
b efore  it is ac t u al l y  f ull y  spent  by  th e  nati ona l auth or it ie s 
as par t of their budget. I n addition, there may be delays in 
t h e   co u n t r y   i m p l e m e n t i n g   i t s   a n n u a l   re c u r re n t   b u d g e t   o r 
i n   i t   i m p l e m e n t i n g   f u n d s   i t   h a s   e a r m a r k e d   fo r   t h e   c a p i t a l 
b ud ge t  to  f in ance inves tment  proj e c t s.

( b) 

I n c re a s i n g l y,   f u n d s   a re   b e i n g   t r a n s fe r re d   b y   t h e   Co m m i s -
sion under joint management arrangements to internation-
a l   o rg a n i s a t i o n s   o r   fo r   i n te r n a t i o n a l   i n i t i a t i ve s   to   f i n a n ce 
p ro gra m m e s   w h i c h   t h e s e   o rg a n i s at i o n s   t h e n   o f te n   i m p l e -
m e n t   t h r o u g h   i n t e r m e d i a r i e s   s u c h   a s   N G O s .   C o m m i s s i o n 
f u n d i n g   i s   g e n e r a l l y   m a d e   i n   t h e   fo r m   o f   l a r g e   a d v a n c e s, 
and   it  c an  t ake   s ome  t ime  before  th es e  ad vances   a re   f ully 
u t i l i s e d .   T h e   C o u r t ’s   S p e c i a l   R e p o r t   o n   h e a l t h   a s s i s t a n c e 
to  Sub -S aharan Afr ica high lighted  proble m s in  th i s area i n 
rel atio n  to   t he  Gl o b al  Fund  agai ns t  Ai ds,  Tu berculos is   and 
M ala r ia 7.

( c) 

For many projects, par ticularly in African, Caribbean, Pacific 
countries (ACP) 8, the Commission makes advance payments 
t o   f i n a n c e   t h e   a n n u a l   wo r k   p ro g r a m m e s   o f   p a r t n e r   c o u n -
tries under decentralised management. The implementation 
a n d   t h e re fo re   d i s b u r s e m e n t   o f   t h e s e   p ro g r a m m e s   c a n   b e 
su b jec t  to  del ays.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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18.   D e vo l u t i o n   h a s   f a c i l i t ate d   t h e   s p e e d i n g   u p   o f   a i d   i m p l e m e n -
t a t i o n   i n   s e ve r a l   w ay s.   H av i n g   Co m m i s s i o n   f i n a n c e   a n d   c o n -
t ra c t   s t a f f   i n   t h e   d e l e g at i o n s   m e a n s   t h a t   t h e y,   a s   we l l   a s   t h e 
increased numbers of operational staff, are able to wor k more 
c l o s e l y   w i t h   n a t i o n a l   a d m i n i s t r a t i o n s   t o   p r e v e n t   a n d   s o l v e 
p ro c e d u r a l   p ro b l e m s   m o re   q u i c k l y.  T h e   e x i s t e n c e   o f   f i n a n c e 
and  co nt rac ts sec tio ns  al ongside  operat io ns  s ec t ion s also  in -
c r e a s e s   t h e   s p e e d   w i t h   w h i c h   f i n a n c i a l   m a n a g e m e n t   i s s u e s 
a r i s i n g   w i t h i n   t h e   Co m m i s s i o n   s e r v i ce s   c a n   b e   re s o l ve d.  Th e 
s i g n i f i c a n t   m e a s u r e s   t a k e n   b y   E u r o p e A i d   t o   s t r e a m l i n e   a n d 
standardise procedures have also facilitated financial manage -
me nt  in de leg at ion s.

19.   N e ve r t h e l e s s,   o t h e r   f a c t o r s   a p a r t   f ro m   d e vo l u t i o n   h a ve   a l s o 
b e e n   i m p o r t a n t   i n   s p e e d i n g   u p   a i d   d e l i v e r y.   T h e   C o m m i s -
s i o n’s   i n c r e a s i n g   u s e   o f   b u d g e t   s u p p o r t ,   a   g e n e r a l l y   f a s t e r 
dis b ursing   ins tr ument  than  t he  trad i ti on al  pro jec t  approa c h, 
has   be en  o ne   asp ec t  of   t his.  Th e  Commi s sio n’s   greate r   u se   of 
i n t e r n a t i o n a l   o r g a n i s a t i o n s   h a s   s i m i l a r l y   b e e n   a   f a c t o r.   T h e 
stric ter requirements of the 2002 financial regulation concern-
i n g   d e a d l i n e s   fo r   t h e   co nt ra c t i n g   o f   a i d   a s s i s t a n ce   h ave   a l s o 
provid ed fu r t her in centives  for  ai d  to be  de livered  q uic k ly  to 
avo i d   s i gn i f i c a nt   a m o u nt s   b e i n g   c a n ce l l e d.   I t   i s   n o t   p o s s i b l e 
to quantify the degree to which devolution and the degree to 
w h i c h   t h e s e   o t h e r   f a c t o r s   h a v e   c o n t r i b u t e d   t o   s p e e d i n g   u p 
de live r y.

A LT H O U G H 	 S O M E 	 I N D I C ATO R S 	 P O I N T 	TO 	 I M P R O V E M E N T S	
I N 	T H E 	 Q UA L I T Y 	 O F 	 A I D 	T H E 	 CO M M I S S I O N ’S 	 S YS T E M S	
F O R 	 A S S E S S I N G 	 Q UA L I T Y 	 D O 	 N OT 	 A L LO W 	 F I R M	
CO N C LU S I O N S 	TO 	 B E 	 D R AW N

20.  

Th e   ove ra rc h i n g   o b j e c t i ve   o f   t h e   Co m m i s s i o n’s   d e ve l o p m e nt 
a s s i s t a n ce   i s   p ove r t y   re d u c t i o n .  Th e   co nt r i b u t i o n   i t   m a k e s   i n 
th is re sp ec t  in ter ms o f o utcom es  a n d i mpac t  a n d th ei r  lo ng -
term sustainabilit y are the ultimate deter minants of the qual-
it y  o f it s aid.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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21.  

22.  

To assess whether devolution had improved the qualit y of aid, 
the   aud it   examined  t he  Co mmiss ion’s   pe r for man ce   usi n g  t he 
k e y   q u a l i t y   i n d i c a to r s   e s t a b l i s h e d   by   Eu ro p e A i d   ( s e e   B ox   2 ) . 
The  aud it ’s asses s ment  inc l uded  wh e th er   th e  in di c ator s were 
r e l i a b l e   a n d   t o g e t h e r   g a v e   a   c o m p r e h e n s i v e   p i c t u r e   o f   t h e 
quality of aid. The audit also sought to identify factors relating 
to devolution which had influenced the quality of aid deliver y.

Th e  au dit  fo und  t hat  so me  Commi s sio n  in di c ator s   po inte d  to 
i m p rove m e n t s   i n   t h e   q u a l i t y   o f   a i d   i n   te r m s   o f   re s u l t s.   H ow -
e ve r,   t h e   a s s e s s m e n t   o f   q u a l i t y   i s   a n   i n h e r e n t l y   d i f f i c u l t   e x -
ercis e  and  t he  Co u r t   co nsider s  th ere  are   s h or tcomi n gs   i n   t he 
Co mm issio n’s  as s essm ent  s ys tem   both   in   re lat ion   to  th e   us e -
f u l n e s s   o f   t h e   d a t a   a s   we l l   a s   t h e   c ove r a g e   a n d   re l e v a n c e   o f 
the  indic ators.

B O X 	 2

K E Y 	 Q UA L I T Y 	 D ATA 	 I N D I C ATO R S 	 U S E D 	 BY 	 E U R O P E A I D

EuropeAid uses four indicators for assessing the quality of aid interventions:

(a)

quality measuring during implementation: overall assessment of project performance based on 
scores for five standard evaluation criteria (relevance, efficiency, effectiveness, impact, sustain-
ability)9;

(b)

quality measuring during implementation: detailed assessment of projects according to five 
standard evaluation criteria. The indicator represents the percentage of projects, which are rated 
as ‘very good’ or ‘good’ for each criterion;

(c)

quality measuring during project preparation: percentage of project proposals assessed as re-
quiring redesign;

(d)

amount of funds committed to general budget support and sector policy support programmes.

9 

 These five criteria are standard evaluation criteria for development as recommended by the OECD Development Assistance 

Committee (DAC). 

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

 
 
 
 
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23.  

The main tool used by the Commission for assessing the overall 
q u a l i t y   o f   i t s   i n t e r ve n t i o n s   i s   t h e   R e s u l t s   O r i e n t e d   M o n i t o r -
ing System (ROM). The ROM system involves ex ternal monitors 
und er  co nt rac t  wit h  the  Commis si on   v is it in g   proj ec ts  on   on e 
o r   m o r e   o c c a s i o n s   d u r i n g   a   p r o j e c t ’s   l i f e t i m e .  T h e   m o n i t o r s 
as s ess the  overall  p er for m ance of th e  proj e c ts  an d  als o s core 
the ir  p er for mance  in  rel atio n  to  th e   fi ve  s tan d ard  e valuati on 
c r i t e r i a   ( s e e   f i r s t   t w o   i n d i c a t o r s   i n   B o x   2 ) .   T h e   R O M   r e s u l t s 
i n d i c a t e   t h a t   t h e r e   h a s   b e e n   a n   i m p r o v e m e n t   i n   t h e   o v e r a l l 
pe r fo r mance o f p ro jec t s  since 2 0 0 4  on  th e  basi s t hat th e  per-
ce n t a g e   o f   n o n - p e r fo r m i n g   p ro j e c t s   h a s   f a l l e n   s t e a d i l y   f ro m 
11  %  in  2004 to  6 %  in  2009 (see Fi gu re  4) .

F I G U R E 	 4

P E R C E N TAG E 	 O F 	 N O N - P E R F O R M I N G 	 P R O J E C T S 	 ACCO R D I N G	 	
TO 	 R O M 	 A S S E S S M E N T S 	2004 – 09

e
g
a
t
n
e
c
r
e
P

20 %
18 %
16 %
14 %
12 %
10 %
8 %
6 %
4 %
2 %
0 %

2004

2005

2006

2007

2008

2009

Year

Not performing, major problems

Source: EuropeAid Indicators Reports.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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24.  

T h e   R O M   a s s e s s m e n t s   a l s o   p o i n t   t o   a   g e n e r a l   i m p r o v e m e n t 
i n   r e l a t i o n   t o   s o m e   o f   t h e   s t a n d a r d   e v a l u a t i o n   c r i t e r i a   ( s e e 
Fig u r e  5) 10.

10  It should be noted that 
there was a change in the ROM 

methodology in 2009 (see 

paragraph 24 (d)).

( a) 

R e l e v a n c e ,   t h e   c r i t e r i o n   w h e r e   p r o j e c t s   s c o r e d   t h e   h i g h -
e s t ,   i n c r e a s e d   f r o m   6 8  %   t o   8 2  %   b e t w e e n   2 0 0 5   a n d   2 0 0 9 
a l t h o u g h   m o s t   o f   t h i s   i n c r e a s e   t o o k   p l a c e   f r o m   2 0 0 8   t o 
2009. I mpac t also increased significantly from 69 % in 2005 
to  78 %  in 200 9.

( b) 

Ef ficie nc y  and sus tainab ilit y  rem ain ed  at or  s l ig htly  above 
t heir 20 05  level s.

( c) 

Ef fe c tive ne ss  wa s   rated   in  2 009   bel ow  th e  20 0 5   le ve l,   f all -
ing from 65 % to 61 %, reversing a trend of steady improve -
m e n t   u p   t o   2 0 0 8 .   I t   i s   d i f f i c u l t   t o   r e c o n c i l e   t h i s   d e c r e a s e 
in effec tiveness with the assessment that there has been a 
s i gn i f i c a nt   r i s e   i n   i m p a c t   fo r   t h e   s a m e   p ro j e c t s   ( s e e   p a ra -
grap h 24 (a)).

( d) 

The  significant c hang es in  th e score s for  rele vance  an d e f-
fec t ivenes s  f rom   2008  to  2 009   are   du e  in   par t   at   le as t  to  a 
c h a n g e   i n   t h e   m e t h o d o l o g y   fo r   c a r r y i n g   o u t   t h e   R O M   a s -
s e s s m e n t s.  T h i s   h i g h l i g h t s   t h a t   t h e   a s s e s s m e n t   o f   q u a l i t y 
w i t h i n   t h e   R O M   s y s t e m   i s   n e c e s s a r i l y   d e p e n d e n t   o n   t h e 
sp ec ific  meth odol o gy us ed.

F I G U R E 	 5	

R O M 	 A S S E S S M E N T 	 O F 	 P R O J E C T 	 R E L E VA N C E ,	 E F F I C I E N C Y,	 E F F E C T I V E N E S S ,	
I M PAC T 	 A N D 	 S U S TA I N A B I L I T Y 	2005 – 09

e
g
a
t
n
e
c
r
e
P

100 %

90 %

80 %

70 %

60 %

50 %

2005

2006

2007
Year

2008

2009

Relevance

Efficiency

Effectiveness

Impact

Sustainability

Source: EuropeAid Indicators Reports.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

v Compulsory activity

v Ad hoc activity

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25.   H o w e v e r,   t h e r e   a r e   s e v e r a l   g e n e r a l   f a c t o r s   w h i c h   l i m i t   t h e 
u s e   t o   w h i c h   t h e   R O M   s y s t e m   c a n   b e   p u t   fo r   m e a s u r i n g   i m -
provement s in  the overal l  effec ti ven e ss  of aid  de live r y. Th es e 
 l a r g e l y   s t e m   f r o m   t h e   f a c t   t h a t   R O M   w a s   n o t   o r i g i n a l l y   d e -
signe d for the  p ur p ose o f measur i n g  t he  ove rall per for man ce 
o f   t h e   Co m m i s s i o n’s   a i d   p o r t fo l i o.   R a t h e r   i t   w a s   i n t e n d e d   t o 
monitor individual projec ts during their implementation with 
a view  to id ent ifyin g t im ely cor re c t ive  ac t ion s  to h e lp e n sure 
the y achie ve d th eir p l an ned result s.  K ey  l imi tation s  re ducin g 
R OM’s   us eful ne ss  as   an   indicator   for   t he   overall   a id  por t foli o 
are as  fo ll ows.

( a) 

S i n c e   R O M   v e r y   l a r g e l y   i n v o l v e s   m o n i t o r i n g   v i s i t s   t o   o n -
g o i n g   p r o j e c t s ,   i t s   r e l i a b i l i t y   v a r i e s   a c c o r d i n g   t o   t h e   c r i -
te r io n  a sse ssed.  I ts  ass es sment  of   re leva nce   i s   li k e ly   to  be 
reliable since this criterion can be assessed before and dur-
ing projec t implementation. Efficienc y too can be assessed 
d u r i n g   i m p l e m e n t a t i o n .   H owe ve r,   fo r   t h e   m o s t   i m p o r t a n t 
area  o f  resu lt s  t he  R O M  s ystem   c an   on ly  as se ss   th e   poten -
tial effec tiveness, impac t and sustainability of projec ts, not 
t heir a c tu al pe r fo r mance  in  t he se  areas  wh ic h  c an  o nl y  be 
ju dg ed af ter th e end o f th e  proj ec t.

( b) 

I t   is  no t  a  rel iab l e  in strument  fo r   m ak in g  compa r i son s  be -
tween years. This is because the sample of projects selected 
for  m on itor ing  in  a  given   year  is   not  e st abli s he d  on   a  s ta -
t ist ical  b ut  rat her on  a ju dgemental bas i s.

( c) 

R O M ’s   c o v e r a g e   o f   a i d   i n t e r v e n t i o n s   i s   l i m i t e d .   T h e   R O M 
m e t h o d o l o g y   w a s   d e s i gn e d   fo r   p ro j e c t s   a n d   re m a i n s   ve r y 
largely focused on this t ype of inter vention. However, only 
a p p rox i m a t e l y   h a l f   t h e   Co m m i s s i o n’s   a i d   i s   s t i l l   d e l i ve re d 
t h r o u g h   p r o j e c t s   b e c a u s e   o f   t h e   g r o w t h   i n   n e w   f o r m s   o f 
a i d,   i n   p a r t i c u l a r   b u d g e t   s u p p o r t   w h i c h   i s   n o t   cove re d   by 
t h e   R O M .   T h e   C o m m i s s i o n   i s   i n   t h e   p r o c e s s   o f   t e s t i n g   a 
R O M   m e t h o d o l o g y   fo r   s e c t o r   p o l i c y   s u p p o r t   p ro g r a m m e s 
(SP SP),  inc ludin g s ec to r budget s uppor t,  but  as ye t h as n o 
R O M me tho do l og y for asse ssing  g en eral  budg e t s uppor t.

26.  

To   a d d re s s   t h e   p r o b l e m   t h a t   t h e   R O M   a s s e s s m e n t s,   b e c a u s e 
they are under taken during implementation, only address po -
te nt i a l   e f fe c t i ve n e s s,   i m p a c t   a n d   s u s t a i n a b i l i t y,   t h e   Co m m i s-
s i o n   a i m s   to   c a r r y   o u t   a p p rox i m ate l y   1 0  %   o f   i t s   R O M   a s s e s s -
m e n t s   a f t e r   p r o j e c t   o p e r a t i o n s   h a v e   c l o s e d .   H o w e v e r,   t h e s e 
as s essm ent s   are   not   us ed   to   provi de   a  f ur th e r   quali t y  in di ca-
tor.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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11  The 2005 Paris Declaration 
on Aid Effectiveness identified 

country ownership, alignment, 

harmonisation, managing 

for results and mutual 

accountability as five key 

principles for making aid more 

effective. The Declaration was 

signed by more than a hundred 

donors and partner countries, 

including the European 

Commission. 

12  See the Court’s Special Report 
No 11/2010 on the Commission's 

management of general 

budget support in ACP, Latin 

American and Asian countries, 

paragraph 83.

27.  

28.  

29.  

The limitations of the ROM system as a tool for assessing qual-
i t y   h ave   n o t   b e e n   a d e q u ate l y   co m p e n s ate d   fo r   by   t h e   u s e   o f 
o t h e r   t o o l s .   T h e   C o m m i s s i o n’s   h e a d q u a r t e r s’  a i d   e v a l u a t i o n 
u n i t   c a r r i e s   o u t   t h r o u g h   i n d e p e n d e n t   c o n s u l t a n t s   a   l a r g e 
n u m b e r   o f   g e o g r a p h i c a l ,   s e c t o r a l ,   t h e m a t i c   a n d   i n s t r u m e n t 
evaluations. The delegations also contract consultants to carr y 
out detailed evaluations of individual aid inter ventions. How -
e ve r,   n e i t h e r   t h e   a s s e s s m e n t s   i n   t h e   e v a l u a t i o n s   c a r r i e d   o u t 
by t he Co mmission’s  headqu ar ter s’ a id  evaluati on  un it  n or  by 
del eg atio ns are q uantified wh ich  m ean s  t he y  c an n ot be  us ed 
a s   p a r t   o f   t h e   q u a l i t y   m e a s u r i n g   s y s t e m .   I n   a d d i t i o n ,   t h e r e 
i s   n o   s ys te m at i c   a s s e s s m e nt   a n d   s co r i n g   o f   p ro gra m m e s   a n d 
p r o j e c t s   b y   d e l e g a t i o n   s t a f f   a t   t h e   e n d   o f   t h e   p r o g r a m m e /
pro jec t (s ee al so  p aragrap h 56 ).

T h e   E u r o p e A i d   q u a l i t y   i n d i c a t o r   fo r   t h e   p r o j e c t   p r e p a r a t i o n 
sta ge   (third  indic ato r  in  B ox   2)   sh ows  that  t he   percent age  of 
p r o j e c t   p r o p o s a l s   s u b m i t t e d   b y   d e l e g a t i o n s   w h i c h   w e r e   a s -
ses sed  by  Eu ro p eAid  as   requir in g  re de si gn  before  th ey   could 
be financed by the Commission fell from 20 % in 2005 to 15 % 
in  2009.

T h e   C o m m i s s i o n   a l s o   u s e s   t h e   p e r c e n t a g e   o f   c o m m i t m e n t s 
a l l o c a t e d   t o   g e n e r a l   b u d g e t   s u p p o r t   a n d   s e c t o r   p o l i c y   s u p -
p o r t   p r o g r a m m e s ,   w h i c h   a r e   m a i n l y   i m p l e m e n t e d   t h r o u g h 
s e c to r   b u d g e t   s u p p o r t ,   a s   a   q u a l i t y   i n d i c a t o r   ( fo u r t h   i n d i c a-
tor in B ox 2). This is because they are the aid deliver y mecha -
nisms which the 2005 Paris Declaration 11 considers to be most 
s u i t a b l e   f o r   p r o m o t i n g   t h e   k e y   p r i n c i p l e s   l i k e l y   t o   i m p r o v e 
aid   e ffec tiveness.  The  ind icator  s hows   a   s trong   upward   t re nd 
since 2004 in the propor tion of aid being channelled through 
budget suppor t. However, this indicator does not demonstrate 
t h e   u l t i m ate   q u a l i t y   o f   a i d   i n   te r m s   o f   i t s   re s u l t s   a n d   i m p a c t 
on  pover t y red uc tio n 12.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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30.  

T h e   C o u r t ’s   a u d i t   fo u n d   t h a t   d e v o l u t i o n   h a d   c o n t r i b u t e d   t o 
im p roved qu al it y in t he fol l owin g  ways.

( a) 

I t has enabled the Commission to develop through the del -
e g at i o n s   a   gre ate r   k n ow l e d g e   a n d   u n d e r s t a n d i n g   o f   p a r t-
ner countr y circumstances and has increased oppor tunities 
fo r   d i a l o g u e   w i t h   t h e   n at i o n a l   a u t h o r i t i e s   a n d   o t h e r   l o c a l 
stakeholders, including donors represented in the countr y. 
This has contributed to improving the relevance of Commis-
sio n  inter ventio ns,   inc l ud in g  bui l din g   up  m ore   own er s h ip 
o f t he inter ve nt ions by th e par tn e r  count r i e s,  and  a lso i m-
p rov i n g   t h e i r   e f f i c i e n c y   t h ro u g h   b e t te r   co o rd i n at i o n   w i t h 
o th er do no rs.

( b) 

T h e   C o m m i s s i o n’s   s t r e n g t h e n e d   i n - c o u n t r y   p r e s e n c e   h a s 
made it easier to monitor its projec ts, enabling better iden-
t i f i c a t i o n   o f   u n d e r p e r fo r m i n g   p ro j e c t s   a n d   t h e   n e c e s s a r y 
co r re c tive  a c t ions.

( c) 

EuropeAid’s quality suppor t group mechanism and thematic 
su p p or t  u nits   have  b een   an   impor tant   com ple ment  to  th e 
d e vo l ve d   m a n a g e m e nt   o f   a s s i s t a n ce   by   d e l e g a t i o n s.  Th e y 
reflec t the impor tance paid by EuropeAid to qualit y issues 
a n d   h a v e   p r o v i d e d   s u p p o r t   t o,   a n d   c o n t r o l   o v e r,   d e l e g a -
tions during the crucial preparator y phases of projec ts and 
programmes as well as assistance during subsequent imple -
mentation. Since devolution, screening of project proposals 
h a s   s te a d i l y   i n c re a s e d   to   cove r   a l l   p ro p o s e d   a i d   i nte r ve n -
t ion s el igib le  fo r s uch s cre en in g.

31.   N e v e r t h e l e s s ,   a s   o b s e r v e d   i n   t h e   s e c o n d   p a r t   o f   t h e   r e p o r t , 
there remains a need for the Commission to improve quality by 
strengthening its delegations’ capacit y and fur ther improving 
their dialogue and monitoring as well as the suppor t provided 
by   Eu ro p e Ai d.  Th i s   i s   co n f i r m e d   by   t h e   Co u r t ’s   ow n   p e r fo r m -
a n c e   a u d i t s   o f   d e ve l o p m e n t   a s s i s t a n c e   c a r r i e d   o u t   i n   re c e n t 
years (see Annex) which also show that despite some improve -
ments there is still considerable scope for mak ing Commission 
aid  inter ventio ns  more effec tive.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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T H E 	 F I N A N C I A L 	 M A N AG E M E N T 	 P R O C E D U R E S	
I M P L E M E N T E D 	 S I N C E 	 D E V O LU T I O N 	 A R E	 	
I N C R E A S I N G LY 	 R O B U S T

32.   One  o f the m ajo r initiatives  of de vo lut io n was th e t rans fer  of 
much of the financial management of aid from the Commission 
headquar ters to delegations. Heads of delegations were made 
subdelegated authorising officers and a ‘Finance and contracts 
sec t io n’ wa s es tab l ished w it hin  de le gati ons. 

33.  

34.  

To   a s s e s s   h o w   f a r   t h e   C o m m i s s i o n   h a d   e s t a b l i s h e d   a n d   i m -
p l e m e n t e d   ro b u s t   f i n a n c i a l   m a n a g e m e n t   p ro c e d u re s   fo r   t h e 
d e vo l ve d   m a n a g e m e nt   o f   a i d,   t h e   a u d i t   u s e d   t h e   Co u r t ’s   An-
n u a l   R e p o r t s   s i n c e   2 0 0 4 .   A   k e y   o b j e c t i v e   o f   t h e s e   r e p o r t s   i s 
to a ss ess the  s ou ndness  o f t he Com mis s ion’s supe r v is or y  a nd 
contro l  systems, inc l u ding th e le ve l of  l eg ali t y  a nd  reg ul ar i t y 
e r r o r s   i n   c o m m i t m e n t s   a n d   p a y m e n t s   m a d e   b y   t h e   Co m m i s-
sio n.

EuropeAid has made significant progress in improving the su-
per visor y and control systems in relation to its devolved man-
a g e m e nt   s i n ce   2 0 0 4 ,   e ve n   i f   t h e   Co u r t   co n s i d e r s   t h at   ove ra l l 
t h e s e   s y s t e m s   a r e   s t i l l   o n l y  ‘p a r t i a l l y   e f f e c t i v e’.   I n   2 0 0 8   t h e 
Commission established a comprehensive control strategy and 
it ha s co nt inue d to  introduce im prove me nt s a s i t i mple me nt s 
the  st rategy.

B O X 	 3

C R I T E R I A 	 F O R 	 A S S E S S I N G 	T H E 	 R O B U S T N E S S 	 O F 	 F I N A N C I A L	
M A N AG E M E N T 	 P R O C E D U R E S

Each year the Court assesses the supervisory and control systems of EuropeAid and all other Com-
mission Directorates-General. Systems are classified as being ‘effective’ in mitigating the risk of error 
in transactions, ‘partially effective’ (when there are some weaknesses affecting operational effective-
ness) or ‘not effective’ (when weaknesses are pervasive and thereby completely undermine operating 
effectiveness).

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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13  External audits are principally 
contracted by delegations at the 

end of projects before the final 

payment is made to ensure that 

project expenditure has been 

legal and regular.

14  Common RELEX Information 
System.

35.  

T h e   C o u r t ’s   A n n u a l   R e p o r t s   s i n c e   2 0 0 4   h a v e   f o u n d   t h a t   t h e 
Co m m i s s i o n   h a s   m a d e   p a r t i c u l a r   p r o g r e s s   i n   r e l a t i o n   t o   t h e 
fol low ing  asp ec ts o f the s up er vis or y  an d cont rol s ys te ms.

( a) 

The Commission has made significant effor ts in establishing 
c l e a r,   h a r m o n i s e d   f i n a n c i a l   p ro c e d u re s   a n d   i n   o r g a n i s i n g 
g u i d a n ce   m a n u a l s   a n d   t ra i n i n g   fo r   b o t h   f i n a n c i a l   a n d   o p -
erat io nal se c tio n s of  d ele gations.

( b) 

A  key  feat ure  of  the Co mmission’s co nt rol s ys tem  is it s  us e 
of ex ter nal audits for projec ts 13. The Cour t found that both 
t h e   q u a n t i t y   a n d   q u a l i t y   o f   t h e s e   a u d i t s   h a d   s i gn i f i c a n t l y 
increased since 2004. Moreover, the Commission has devel-
oped a special module within its computerised information 
s y s t e m   fo r   e x t e r n a l   a s s i s t a n c e   ( C R I S 1 4)   fo r   d e l e g a t i o n s   t o 
c o m m u n i c a t e   t h e   r e s u l t s   o f   a u d i t s   t o   C o m m i s s i o n   h e a d -
qu ar ters  fo r infor matio n and  subs e que nt  a n alys is.

( c) 

The   Co mmiss io n’s   r is k  as s es sme nt   fram e wor k   h as  progres-
sivel y imp roved,  p ar tl y  th anks  to a greate r  i nvolveme nt of 
d e l e g a t i o n s   i n   t h i s   e xe r c i s e   a n d   t o   b e t t e r   a n a l y s i s   o f   r e -
p o r t s   i s s u e d   by   Eu ro p e A i d ’s   I nte r n a l   Au d i t   Ca p a b i l i t y,   t h e 
Commission’s overall I nternal Audit Ser vice and contrac ted 
ex te r nal au ditors.

( d) 

The Cour t ’s repor ts have tended to be critical of the way the 
Commission has assessed the eligibility of par tner countries 
fo r   b u d g e t   s u p p o r t   p ro gra m m e s   a n d   d i s b u r s e m e nt s.   N e v-
er t hel es s,  the  rep or ts al so recogni s e th at th ere  h as be e n a 
steady   imp rovement  b oth  in  the   c l ar i t y   of   th e  f ra me wor k s 
used by the Commission for assessing the eligibility criteria 
a n d   i n   t h e   q u a l i t y   o f   t h e   a c t u a l   a s s e s s m e n t s   o f   e l i g i b i l i t y 
mad e by t he del eg at ion s.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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36.   D e s p i t e   t h e   p ro g re s s   m a d e,   t h e   Co u r t   h a s   c o n t i n u e d   t o   f i n d 
w e a k n e s s e s   i n   s u p e r v i s o r y   a n d   c o n t r o l   s y s t e m s ,   n o t a b l y   a t 
t h e   l e v e l   o f   d e l e g a t i o n s .   T h e s e   p r i m a r i l y   c o n c e r n   h o w   t h e 
d e l e g a t i o n s   a d d r e s s   s h o r t c o m i n g s   i n   t h e   f i n a n c i a l   m a n a g e -
ment  a nd  contro l s  of  k ey  ac tors,  invol ve d  i n  E U  d eve lopment 
a s s i s t a n c e ,   i n   p a r t n e r   c o u n t r i e s .  T h e s e   i n c l u d e   t h e   n a t i o n a l 
organisations that implement the aid, the super visors of infra -
s t r u c t u re   p ro j e c t s,   a n d,   fo r   t h e   E D F,   t h e   n at i o n a l   a u t h o r i s i n g 
of ficers’ se r vices  (see al so  p aragraph  5 7 ) .

37.   We a k n e s s e s   i n   t h e s e   a re a s   h ave   b e e n   t h e   m a i n   s o u rc e   o f   e r-
r o r s   i d e n t i f i e d   b y   t h e   C o u r t   i n   i t s   a u d i t   o f   t h e   l e g a l i t y   a n d 
reg ul ar it y  o f  th e  Comm is s ion’s   fi na nci al  t ran sac t ion s.  For   t h e 
Co m m i s s i o n   p o l i c y   a re a   w h i c h   i n c l u d e s   d e ve l o p m e n t   a s s i s t -
ance financed from the EU general budget, the Cour t has con-
s i s te nt l y   h a d   to   re p o r t   a   m ate r i a l   l e ve l   o f   e r ro r   fo r   p ay m e nt s 
estimated at between 2 % and 5 %. This has generally been the 
c a s e   f o r   t h e   E D F   t o o   a l t h o u g h   i n   2 0 0 9   t h e   C o u r t   c o n c l u d e d 
that  paym ent s were free fro m mate r i al e r ror.

38.   A   k e y   a s p e c t   o f   t h e   Co m m i s s i o n’s   wo r k   o n   f u r t h e r   i m p rov i n g 
i t s   c o n t r o l   s t r a t e g y   a n d   t a c k l i n g   t h e s e   w e a k n e s s e s   i s   a n   a s-
sessment of the strategy ’s costs and benefits. This has proved 
a   s i g n i f i c a n t   c h a l l e n g e   fo r   s e ve r a l   re a s o n s.  T h e   e s t i m a t e s   o f 
c o s t s   t h u s   f a r   p ro d u c e d   b y   t h e   Co m m i s s i o n   h ave   b e e n   h a m -
p e r e d   b y   t h e   i n h e r e n t   d i f f i c u l t i e s   i n   d e f i n i n g   w h a t   a c t u a l l y 
con stit utes  a  co ntro l  and  th en  a ss es si n g  th e  s ta ff   ti me   spe nt 
on  im p l ement ing  t ho se co nt rols. 

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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W H I L E 	 D E V O LU T I O N 	 H A S 	 CO N T R I B U T E D 	TO	
I M P R O V I N G 	T H E 	 A I D 	 D E L I V E R Y,	 I T 	 I S 	 N OT	
B R I N G I N G 	 A L L 	T H E 	 B E N E F I T S 	 I T 	 CO U L D,	
E S P E C I A L LY 	 I N 	 R E L AT I O N 	TO 	 I M P R O V I N G	
Q UA L I T Y

39.  

The first par t of the repor t concluded that devolution has con-
t r i b u te d   to   i m p rov i n g   a i d   d e l i ve r y   b u t   a l s o   fo u n d   t h a t   t h e re 
was still a need to strengthen aid deliver y, par ticularly in rela -
tion to the qualit y of aid. This second par t of the repor t high -
lights areas identified by the audit which need to be addressed 
in order to better realise the potential benefits of devolution.

15  In 2001, delegation staff 
amounted to approximately 

900, while staff in EuropeAid 

amounted to approximately 

1 350.

T H E R E 	 I S 	 S T I L L 	 S CO P E 	 F O R 	T H E 	 CO M M I S S I O N 	TO	
I M P R O V E 	 I T S 	 A L LO C AT I O N 	 A N D 	 U S E 	 O F 	 H U M A N	
R E S O U R C E S 	 I N 	 D E L E G AT I O N S

40.  

T h e   t r a n s fe r   u n d e r   d e vo l u t i o n   o f   m a j o r   n e w   re s p o n s i b i l i t i e s 
from the Commission headquar ters required that delegations 
be granted adequate resources, par ticular ly staff, to car r y out 
these responsibilities. The Commission recognised the need to 
s i gn i f i c a nt l y   i n c re a s e   s t a f f i n g   l e ve l s   i n   d e l e g at i o n s   a n d   ove r 
t h e   p e r i o d   2 0 0 1   t o   2 0 0 5   a s s i g n e d   a p p r o x i m a t e l y   1   5 0 0   a d -
d i t i o n a l   s t a f f   t o   d e l e g a t i o n s .   T h i s   w a s   d o n e   b y   t r a n s f e r r i n g 
a r o u n d   4 5 0   s t a f f   f r o m   E u r o p e A i d   a n d   r e c r u i t i n g   m o r e   t h a n 
1 0 00 co nt rac t  staff 15.  Howe ver, in 2 0 07 t he Commissi on  com-
m i t t e d   i t s e l f   t o   a   z e r o   g r o w t h   p o l i c y   f o r   i t s   s t a f f   u n t i l   2 0 1 3 
w h i c h   h a s   i n c r e a s e d   t h e   i m p o r t a n c e   o f   m a k i n g   t h e   b e s t   a l -
l o c a t i o n   a n d   u s e   o f   e x i s t i n g   r e s o u r c e s   i f   t h e   f u l l   b e n e f i t s   o f 
devo l u tio n are  to b e real ised.

41.  

Eu ro p e A i d   h a s   h i g h l i g h te d   t h e   r i s k s   p re s e n t e d   by   i t s   h u m a n 
resources situation to the effec tive deliver y of aid in its recent 
an nu al ac t ivit y  rep or ts. The Cour t h as  a lso rai se d t he  is sue of 
the  ade quac y o f staff  res ou rces  an d i ts  im pac t  on  th e q ua lit y 
and financial management of aid on several occasions, notably 
in  its  Annual  R ep o r t s.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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42.   O ve r   t h e   p e r i o d   2 0 0 5   to   2 0 0 8   t h e   co m p o s i t i o n   o f   d e l e g at i o n 
sta ffin g  c hanged   as   a  res ul t  of  a  gre ater   pr i or i t y   bei ng   gi ven 
t o   s t r e n g t h e n i n g   d e l e g a t i o n’s   p o l i t i c a l   a n d   t r a d e   f u n c t i o n s . 
Heads of delegation themselves are increasingly preoccupied 
w i t h   p o l i t i c a l   a n d   t r a d e   i s s u e s   a n d   t h i s   t e n d e n c y   i s   l i k e l y   t o 
grow with the establishment of the EEAS. I n a major redeploy-
m e n t   e xe rc i s e   i n   2 0 0 8 ,   5 6   p o s t s   o f   o f f i c i a l s   we re   t r a n s fe r re d 
from operations sec tions to political and trade sec tions, which 
reduced the aid management capacit y of delegations. Follow-
in g  t he  2008  redep l oym ent   exerc i se,  pos ts   for   of f ici als  i n  t he 
aid operations sec tions were replaced by less senior posts for 
contrac t  a nd lo cal  staff.

43.   A t   t h e   e n d   o f   2 0 0 9 ,   a p p r o x i m a t e l y   2 0  %   o f   d e l e g a t i o n   s t a f f 
work ing on aid management were officials, 30 % were contrac t 
staff, and approaching 50 % were local staff. Contract and local 
staff have a valuable role to play in supplying specialist and lo -
cal k nowledge although both staff groups tended to have less 
access to training oppor tunities which reduced their potential 
co nt r i b u t i o n .   At   t h e   e n d   o f   2 0 0 9   t h e   ove ra l l   va c a n c y   rate   fo r 
c o n t r a c t   a g e n t s   i n   d e l e g a t i o n s   w a s   1 4  %   a n d   w a s   r e c o r d e d 
i n   Eu ro p e A i d ’s   ce nt ra l   r i s k   re gi s te r   a s   a   c r i t i c a l   r i s k   fo r   2 0 1 0 .  
Th e   h i g h   va c a n c y   rate   w a s   m a i n l y   d u e   to   d i f f i c u l t i e s   re c r u i t -
in g  co nt rac t  staff  w ith  ap p ropr iate   ex per ti se,   par ti cular ly   for 
wo r k ing  in  hards hip  cou ntr ies. 

44.  

Th e sk il l  co mpo s it ion  of  staff  is a f ur th er  i ssu e fa ci ng de leg a-
tions. Delegations are still adjusting to the new sk ills require -
ments entailed by the Commission’s shif t from the traditional 
p r o j e c t   a p p r o a c h   t o   a i d   d e l i v e r y   t o   t h e   u s e   o f   b u d g e t   s u p -
por t  whic h  requ ires  exp er t ise  in   macroe con omi cs  an d  public 
f i n a n c e   m a n a g e m e n t .  Th e   n e c e s s a r y   s k i l l s   to   co n d u c t   p o l i c y 
d i a l o g u e   a re   a l s o   a n   i n c re a s i n g l y   i m p o r t a n t   re q u i re m e n t   fo r 
a l l   a i d   m o d a l i t i e s   b u t   p a r t i c u l a r l y   f o r   b u d g e t   s u p p o r t   p r o -
gram mes. While   the  Commis sion   has   mad e  s ign i fi c ant  e ffor ts 
t o   d e v e l o p   t r a i n i n g   c o u r s e s   f o r   i t s   s t a f f   o n   n e w   a i d   m e c h a -
ni sms,  t hese   co urs es  are  onl y  of  a   sh or t  d urat ion .   I n   prac ti ce 
t h e y   m a i n l y   s e r ve   to   ra i s e   t h e   awa re n e s s   o f   s t a f f   o n   k e y   to p -
i c s   b u t   d o   n o t   g i ve   t h e m   t h e   i n - d e p t h   e x p e r t i s e   re q u i r e d   t o 
bring a significant value added. Recent per formance audits by 
t h e   Co u r t   o n   h e a l t h   a n d   e d u c at i o n   h ave   a l s o   p o i nte d   to   l i m -
ited exper tise in these more traditional aid areas despite their 
ce nt ra l i t y   to   t h e   m i l l e n n i u m   d e ve l o p m e nt   g o a l s   a n d   p ove r t y 
redu c tio n.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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45.   While EuropeAid has under taken var ious quite detailed wor k-
l o a d   a n a l y s e s ,   t h e s e   h a v e   l a r g e l y   b e e n   u s e d   t o   a s s e s s   i n d i -
vidual requests of heads of delegation for additional staff and 
have not concluded on the overall adequac y of staffing levels 
b e t we e n   d e l e g at i o n s.  Th e re   h a s   a l s o   b e e n   n o   a s s e s s m e n t ,   i n 
t h e   b u i l d - u p   to   t h e   e s t a b l i s h m e nt   o f   t h e   E E A S ,   to   d e te r m i n e 
t h e   o p t i m a l   b a l a n c e   b e t we e n   p o l i t i c a l / t r a d e   s t a f f   p o s t s   a n d 
aid   manag em ent   p os ts  in  delegat ion s.  S imi lar ly   th e  Com mis-
s i o n   h a s   a l s o   n o t   m a p p e d   t h e   av a i l a b l e   e x i s t i n g   e x p e r t i s e   i n 
delegations in order to make sure that staff with specific train -
ing and experience are assigned to the delegations where they 
can b e  put  to  b est u se.

46.  

Th e  Co mmissio n  h as   taken   a  n um ber   of   ste ps  i nten de d  to   al -
low aid to be managed more efficiently through existing staff 
re s o u rc e s.   Fo r   e x a m p l e,   i t   h a s   s o u g h t   t o   i n c re a s e   t h e   s i z e   o f 
t h e   i n d i v i d u a l   p ro j e c t s / p ro g r a m m e s   i t   f u n d s,   i n   o rd e r   t o   re -
duce the administrative burden of managing a large number of 
smal l   p ro je c ts.  I n creas ed  u se  of   budg e t  suppor t   program me s 
has facilitated large disbursements although the main benefit 
o f   b u d g e t   s u p p o r t   i s   o f t e n   t h e   o p p o r t u n i t i e s   i t   p ro v i d e s   fo r 
d i a l o g u e   i n   r e l a t i o n   t o   t h e   p r o g r a m m e   o b j e c t i v e s .   E f fe c t i v e 
d i a l o g u e   re q u i re s   i n t e n s i ve   s t a f f   i n p u t s.   Fo r   g e n e r a l   b u d g e t 
sup p o r t   pro grammes,  the  o bjec t ive s  of  wh ich   t y pi cally   cover 
macro eco no mic   s tab ilit y,  pu blic   f in an ce   an d  he alt h   an d  e du -
cat io n,  de le g atio ns   of ten  do  n ot  have   th e   re sources   to  be   in-
vol ve d in dial og ue in  all  these areas.

47.  

Th e  Co mmiss ion’s  ap p roac h  of  req uir in g  t h e  f undi n g  f rom   it s 
countr y strategy papers (CSPs) to be concentrated on no more 
t h a n   t wo  ‘ fo c a l ’  s e c to r s   i n   o rd e r   to   a c h i e ve   gre ate r   i m p a c t   i n 
principle has also the benefit of reducing the need for diverse 
e x p e r t i s e   i n   t h e   d e l e g a t i o n s.   O n   t h e   o t h e r   h a n d,   i n   a d d i t i o n 
to t hese  t wo  fo cal  s ec to rs,  delegat ion s  t y pica lly  a lso man ag e 
aid inter ventions in a number of additional areas which place 
a s ign ificant  a ddit ion al  wo r k loa d on  t he m  (s ee  Fi gu re  6) .

( a) 

D el eg atio ns in AC P cou nt r ies also  h ave to m ana g e g en e ra l 
b u d g e t   s u p p o r t   p r o g r a m m e s   w h e n   c o u n t r i e s   a r e   e l i g i b l e 
for t hem .

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( b) 

C S Ps   g e n e r a l l y   a l s o   i n c l u d e  ‘n o n - fo c a l ’  s e c t o r s   t o   f i n a n c e 
sm al le r inter ve nt io ns  ou ts ide  th e t wo  ma in  focal  s ec tor s.

16  There are five thematic 
programmes under the 

( c) 

D e l e g a t i o n s   a re   f re q u e n t l y   i nvo l ve d   i n   t h e   s u p e r v i s i o n   o f 
regional  p ro je c t s.

( d) 

D e l e g a t i o n s   a l s o   h a v e   t o   i m p l e m e n t   a   s e r i e s   o f   s m a l l e r 
projects funded from the horizontal thematic programmes 16. 

( e) 

D el eg atio ns are of ten al s o involved  i n th e  man a ge me nt  of 
o th er  inter ventio ns   fun ded  from   ot he r   spe c if ic   ai d   i ns tr u -
me nt s  (s ee  Figu r e  6). 

Development and Cooperation 

Instrument: non-state actors 

and local authorities, investing 

in people, food security, 

environment and sustainable 

management of natural 

resources, and migration and 

asylum.

F I G U R E 	 6

A R E A S 	 O F 	 A I D 	 I N T E R V E N T I O N 	 O F 	 A 	T Y P I C A L 	 D E L E G AT I O N

Country strategy paper

Regional 
strategy 
paper

Projects funded  
from thematic  
programmes

Other instruments

Focal  
sector 1 
( e.g. 
health)

General 
budget 
support 
pro-
gramme         
(eligible 
ACP states)

Non-focal  
sectors

Regional 
projects 
in the 
country

-  Non-state actors and 

local authorities
-  Investing in people
- Food security
-  Environment and 

sustainable  
management of 
natural resources

-  Migration and 

asylum

Examples: 
-  European instrument 
for democracy and 
human rights
-  Instrument for 

stability

-  Restructuring of 
sugar production

- EU food facility
- FLEX instrument

Focal  
sector 2 
(e.g.  
education)

Source: European Court of Auditors’ analysis based on Commission’s documents.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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17  EU Code of Conduct on 
Complementarity and Division of 

Labour in Development Policy. 

Conclusions of the Council 

and Representatives of the 

Governments of the Member 

States 9558/07, Brussels, 

15.5.2007.

18  The three sectors do not 
include general budget support 

programmes.

19  Communication from the 
Commission to the Council 

and European Parliament: ‘EU 

Code of Conduct on Division of 

Labour in Development Policy’, 

COM(2007) 72 final, Brussels, 

28.2.2007.

48.  

T h e   c o n t i n u e d   i n v o l v e m e n t   i n   a   l a r g e   n u m b e r   o f   s e c t o r s   o f 
inter vention runs contrar y to the 2007 EU Code of Conduc t on 
Co mp l eme nt ar it y and  the Division  of  L abour  in  D eve lopme nt 
Po l i c y 1 7.  Th i s   c a l l s   o n   E U   d o n o r s   to   l i m i t   t h e i r   a c t i ve   i nvo l ve -
ment in a par tner countr y to a maximum of three sec tors 18 and 
to redeploy their other ac tivities, possibly through delegated 
co o p e rat i o n / p a r t n e r s h i p   a r ra n g e m e nt s   w i t h   o t h e r   d o n o r s.   I t 
a l s o   p r o v i d e s   a   f r a m e w o r k   f o r   d r a w i n g   o n   t h e   e x p e r t i s e   o f 
d e s i gn ate d  ‘ l e a d   d o n o r s’  fo r   i n d i v i d u a l   s e c to r s.  Th e   Co m m i s -
s i o n   d re w   u p   t h e   p o l i c y   d o c u m e n t 1 9  w h i c h   fo r m e d   t h e   b a s i s 
for t he Co de  o f Condu c t and has bee n  se e k in g  to promo te  i ts 
implementation. Never theless, considerable progress remains 
to be made in this respec t including through greater joint pro-
gram ming. I t is c l ear that  red ucin g  th e  n umbe r  of s ec tor s t he 
Co mm issio n is ac tivel y invo l ved  i n  a nd  fur t h er  s tre n gt he n in g 
coordination with other donors, in par ticular other EU Member 
States, can help make the best use of existing staff resources. 

49.   G i v e n   t h e   c h a l l e n g e s   f a c e d   b y   d e l e g a t i o n s   i n   m e e t i n g   t h e i r 
c u r re n t   l e ve l s   o f   re s p o n s i b i l i t i e s   a n d   t h e   i n c re a s e d   vo l u m e s 
o f   a i d   b e i n g   m a n a g e d,   t h e re   a p p e a r s   l i t t l e   s c o p e   fo r   f u r t h e r 
d e v o l u t i o n   o f   r e s p o n s i b i l i t i e s ,   e v e n   i f   t h e   C o m m i s s i o n   i s   i n 
p r i n c i p l e   f a v o u r a b l e   t o w a r d s   t h i s   o n   t h e   b a s i s   o f   t h e   A c c r a 
Agen da for Ac t ion.

T H E 	 CO M M I S S I O N ’S 	 H E A D Q UA R T E R S 	 H AV E 	 O N LY 	 A	
L I M I T E D 	 C A PAC I T Y 	TO 	 S U P P O R T 	 D E L E G AT I O N S 	 I N	
I M P R O V I N G 	 Q UA L I T Y 	 D E S P I T E 	T H E 	 S I G N I F I C A N T	
E F F O R T S 	 M A D E 	 BY 	 E U R O P E A I D

50.   A ce nt ral fe atu re of the devolve d ma nag em e nt  s ys tem  i s th at 
EuropeAid should provide the exper tise to enable the delega-
t i o n s   to   c a r r y   o u t   t h e i r   re s p o n s i b i l i t i e s.   Eu ro p e Ai d   h a s   t a k e n 
impor tant measures to fulfil this role. These include establish-
in g a d ire c torate  sp ecifical l y for  ‘Q ua lit y  of  Ope rati ons’ wh i le 
its geographical direc torates also provide suppor t. The quality 
sup p o r t   gro u p  mech anism   wh ich   s c re en s  propose d  i nte r ve n-
tions at the end of the identification and formulation stages is 
chaire d  by  ea ch  geo grap hic al  di re c tor   an d  i ncl ud es   bot h   t h e 
ge ograp hical   ser vices  and  th e  Q uali t y   of   Ope rati ons   Di re c to -
rate.

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51.   H owe ve r,   Eu ro p e A i d   f a ce s   s i gn i f i c a n t   d i f f i c u l t i e s   i n   b u i l d i n g 
up the necessar y exper tise to properly play its central suppor t 
role because of the high turnover rate amongst its staff. This is 
be cau se  ap p roximatel y  40  %  of  it s  staff   are  contrac t  agents 20 
all  o f   w ho m  have  a  maximum   th re e -ye ar   n on -re n ewa bl e  con-
t ra c t   a s   re q u i re d   by   t h e   S t a f f   R e g u l a t i o n s.   I n   f a c t   m a ny   s t a f f 
leave before the three years have expired because of the need 
to find new employment. The high turnover rate does not pro -
vide a sound foundation for a strong central suppor t func tion 
an d weak ens  b oth in stitu tio nal mem or y  an d t h e ef f icie n c y  of 
op erat ion s.

20  In some geographical 
directorates the proportion is 

as high as 50 %, in the Quality 

of Operations Directorate the 

level is 35 %. This compares with 

an average of 15 % across the 

Commission as a whole.

F I G U R E 	 7

E U R O P E A I D 	 Q UA L I T Y 	 O F 	 O P E R AT I O N S 	 D I R E C TO R AT E	
T H E M AT I C 	 S U P P O R T 	 U N I T S

Macro-
economic 
support

Business, 
trade and 
regional  
integration

Social and 
human  
development 
and  
migration

Governance, 
security,  
human rights 
and gender

Natural  
resources, rural 
development, 
food security, 
environment

Infra- 
structures

•  Macro- 

economic 
advice
•  Budget  
support
•  Public  

financial  
management

•  Economic 

governance

•  Private  
sector  
development
•  Micro finance
•  Trade- 

related  
assistance/ 
aid for trade

•  Regional 

integration

•  Health and 
population
•  Education
•  Employment,  

social  
inclusion and  
protection

•  Culture
•  Migration

•  Agriculture 
and rural  
development
•  Food security
•  Environment
•  Climate 
change

•  Transport
•  Water and 
sanitation

•  Energy and ICT
•  Urban  

development

•  Rule of law, 

human rights 
and democrati-
sation

•  Civil society
•  Public adminis-
tration reform, 
decentralisa-
tion and fight 
against  
corruption

•  Gender  
equality
•  Peace and  
security, in-
cluding conflict 
prevention and 
security sector 
reform

Total support 
staff:  9

Total support 
staff:  9

Total support 
staff:  24

Total support 
staff:  16

Total support 
staff:  19

Total support 
staff:  15

Source: European Court of Auditors’ analysis based on Commission’s documents.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

32

52.  

53.  

T h e   Q u a l i t y   o f   O p e r a t i o n s   D i r e c t o r a t e   i n c l u d e s   s i x   t h e m a t i c 
u n i t s   w h i c h   b e t we e n   t h e m   cove r   m o re   t h a n   2 0   d i f fe re nt   s e c -
tors (see Figure 7). The wide range of sectors covered does not 
reflect the European Consensus on Development that the Com-
mission should focus on fewer sec tors based on an analysis of 
i t s   co m p a rat i ve   a d va nt a g e.  Th e re   a re   o n l y   n o r m a l l y   b e t we e n 
two and six staff work ing on each sec tor to provide suppor t to 
the 111 EU delegations wor ldwide. This means that the direc -
torate   has   on ly  l imited  c ap acit y   both   for   pa r ti c ipati ng   in   t he 
fo r m a l   q u a l i t y   s u p p o r t   re v i e w   m e c h a n i s m   a n d   fo r   a d d i t i o n a l 
ad-hoc suppor t to delegations at the latter ’s specific requests. 
The low budget available for travelling to delegations to pro -
vide suppor t represents a fur ther constraint on the direc torate 
in  fu lf il l ing  it s  role.

21  See Court’s Special Report No 
13/2010:  ’Is the new European 

Neighbourhood and Partnership 

Instrument successfully 

launched and achieving results 

in the Southern Caucasus 

(Armenia, Azerbaijan and 

Georgia)?’.

E u r o p e A i d   h a s   m a d e   s i g n i f i c a n t   e f f o r t s   t o   d e v e l o p   a   r a n g e 
of   us ef ul  g uidel ines,  man uals  an d  oth e r   mater ia ls  as   an ot h er 
way  to   su p po r t  del egat ion s. The   mai n   are a  wh i c h  ha s  n ot  re -
ce i ve d   s u f f i c i e nt   at te nt i o n   wa s   g u i d a n ce   o n   p o l i c y   d i a l o g u e. 
T h i s   i s   d e s p i t e   t h e   f a c t   t h a t   p o l i c y   d i a l o g u e   i s   a   k e y   m e a n s 
to  imp rove  aid  resu lt s and th at  a ma jor  a dvantag e  of d evolu-
tio n is the  increas ed p os sib ilities  i t give s th e Com mis si on  for 
polic y dialogue. This was especially the case in relation to the 
Co m m i s s i o n’s   g u i d e l i n e s   o n   g e n e r a l   b u d g e t   s u p p o r t   d e s p i te 
the par ticular oppor tunities presented by budget suppor t for 
polic y dialogue. The Commission’s projec t c ycle management 
guidelines, which date back to 2004, scarcely address the role 
whic h  p ol ic y  dial og ue  can  also  pl ay   in   t h e  contex t   of  proje c t 
inte r ve nt io ns. The  Cour t ’s  audit   on   th e  n ew  Europea n  N ei gh -
bourhood and Par tnership I nstrument (ENPI) also pointed out 
the lack of specific guidance for struc tured dialogue with the 
par t ner co u nt r y 21.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

33

M O N I TO R I N G ,	 R E P O R T I N G 	 A N D 	 E VA LUAT I O N 	 A R E 	 N OT	
Y E T 	 S U F F I C I E N T LY 	 D E V E LO P E D 	 I N 	 R E L AT I O N 	TO 	 A I D	
Q UA L I T Y 	 A N D 	 F I N A N C I A L 	 M A N AG E M E N T

54.   Devolution led to delegations being made responsible for the 
techn ical an d finan cial  mo nitor i n g  of  in di vi dual  progra mme s 
an d p roj ec t s.  As already  o b ser ved  ( se e paragraph  2 9 ),   h avin g 
o p e r a t i o n a l   a n d   f i n a n c i a l   s e c t i o n s   i n   c o u n t r y   h a s   g i v e n   t h e 
Commission considerably increased oppor tunities for monitor-
in g,  p ar t ic ul ar l y  fo r  on-t he -s pot   proj ec t   vi si ts,   wit h   a  vi e w  to 
im p roving   t he  qual it y   and   fin an c i al  man ag e ment   of   i ts   i nte r-
ventions. As the Commission headquar ters remain responsible 
fo r   t h e   ove ra l l   m o n i to r i n g   o f   a i d   d e l i ve r y,   i t   i s   e s s e nt i a l   t h at 
an   e ffec t ive   rep or ting   system  from   de le gat ion s   to  Europe Aid 
is in operation. Evaluations under taken af ter aid inter ventions 
h ave   b e e n   c o m p l e t e d   a l s o   h ave   a n   i m p o r t a n t   ro l e   t o   p l ay   i n 
generating information for both headquar ters and delegations 
on  the  qu alit y o f aid inter vention s.

55.  

I n   p rac t ice,  de leg ations  have  n ot   t aken   full  advant age   o f  t h e 
greater oppor tunities provided by devolution for on-the -spot 
m o n i to r i n g   o f   t h e   te c h n i c a l   a n d   f i n a n c i a l   i m p l e m e nt at i o n   o f 
p ro j e c t s   a n d   p ro gra m m e s.  Th e   Co u r t ’s   a u d i t   v i s i t s   to   d e l e g a -
t i o n s   i n d i c ate d   t h at   m o n i to r i n g   v i s i t s   a re   n o t   s ys te m at i c   b u t 
t e n d   t o   b e   m o re   o n   a n   a d - h o c   b a s i s,   d e p e n d i n g   o n   t h e   t i m e 
and budget available. Frequently the processing of documen -
t a t i o n   r e l a t i n g   t o   c o n t r a c t s   a n d   p a y m e n t s   t a k e s   p r i o r i t y   fo r 
b o t h   o p e r a t i o n a l   a n d   f i n a n c i a l   s t a f f   a n d   f i e l d   v i s i t s   a re   t h u s 
ne g l ec ted. This  tendenc y  is   exace r bate d  by   th e   f ac t   th at  d el-
e g a t i o n s   h a v e   n o t   d e v e l o p e d   s t r a t e g i c   m o n i t o r i n g   p l a n s   t o 
ensu re t hat  pro jec t s are vis ited reg ular ly.

56.   As far as on-the -spot monitoring of the qualit y of aid in terms 
o f   r e s u l t s   i s   c o n c e r n e d ,   t h e   R O M   s y s t e m   i s   t h e   m a i n   m e a n s 
u s e d   b y   t h e   C o m m i s s i o n .   T h e   R O M   s y s t e m   i s   b a s e d   o n   e x -
ter nal   co nsul t ants  car r ying   out  s hor t  mi s si ons   to  t h e  par t n er 
countries to make on-the -spot visits to projec ts and repor ting 
b a c k   t o   t h e   d e l e g a t i o n   s t a f f   re s p o n s i b l e   fo r   t h e   p ro j e c t .  Th e 
Co mm issio n  has   no t  estab l ish ed  a  s ys te m  for   it s  ow n  st af f  to 
visit projec ts during and af ter implementation and to draw up 
str uc t ure d, qua ntified res ul t s foc use d re por t s.  Th is  is de spi te 
the Commission stressing the impor tance of its staff having a 
results oriented approach and despite delegation staff having 
the   b es t  k nowl edg e  o f  the   aid  inte r ve nt ion s   an d  th e   countr y 
circu ms tance s.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

34

57.   As   f a r   a s   o n - t h e - s p o t   m o n i to r i n g   o f   f i n a n c i a l   m a n a g e m e nt   i s 
con ce r ne d,  t he  Co u r t ’s   Ann ual  R e por t s  reg ular ly   poi nt   to  th e 
f i n a n c i a l   m a n a g e m e n t   w e a k n e s s e s   o f   i m p l e m e n t i n g   o r g a n i -
s a t i o n s   a n d   t h e   r e s u l t a n t   l e g a l i t y   a n d   r e g u l a r i t y   e r r o r s   t h e y 
m a k e.  T h e   re p o r t s   a l s o   re fe r   t o   we a k n e s s e s   i n   t h e   c o n t ro l   o f 
i n f r a s t r u c t u r e   p r o j e c t s   b y   w o r k s   s u p e r v i s o r s .   I n   b o t h   c a s e s 
the  lim ited o n-th e -sp o t mo nitor in g  vi si ts  by  de le g ation  s ta ff, 
par ticularly financial staff, mean that financial management is 
not  su ffic ient l y mo nitored and t he  rem ed ial  ac t ion  ne ce ss ar y 
to address weak nesses or er rors is delayed or not taken at all.

22  See Special Report No 
18/2009 on the effectiveness 

of EDF support for regional 

economic integration in East 

Africa and West Africa, in 

particular Box 2.

58.  

59.  

T h i s   a u d i t   a n d   t h e   re c e n t   Co u r t   a u d i t   o f   E D F   r e g i o n a l   c o o p -
e r a t i o n   h ave   i d e n t i f i e d   p a r t i c u l a r   we a k n e s s e s   i n   t h e   t e c h n i -
c a l   a n d   f i n a n c i a l   o n - t h e - s p o t   m o n i t o r i n g   b y   d e l e g a t i o n s   o f 
the matic   p roj ec ts   ( see  p aragraph  4 6 )  a nd   re gion al  proj e c ts 22. 
This  ref le c t s  t he  difficul ties  that   de le gati ons   f ace   i n  mee t in g 
all priorities given the staff constraints. In the case of regional 
co o p e rat i o n   i t   a l s o   re f l e c t s   t h e   l a c k   o f   c l e a r   d e f i n i t i o n   o f   re -
sp on sib ilit ies b et ween d eleg ation s.

T h e   m a i n   r e p o r t i n g   t o o l   u s e d   b y   t h e   C o m m i s s i o n   b e t w e e n 
delegations and EuropeAid is the Ex ternal Assistance Monitor-
in g R ep or t (EAMR ) w hich delegati ons  are  re quired  to prepare 
ever y  six  mont hs.  The  draw in g  up  of   t he se   repor ts   re quires   a 
considerable time input from the delegations. However, these 
repor ts largely describe activities carried out and implementa-
t i o n   p ro b l e m s   e n co u nte re d.   M o re ove r,   i n fo r m at i o n   p rov i d e d 
to a cer tain ex tent overlaps with information available in CRIS. 
They p rovide lit tl e indic atio n on  th e ac t ua l res ults  of  t h e aid, 
e i t h e r   i n   te r m s   o f   a s s e s s m e nt s   m a d e   by   t h e   d e l e g at i o n   i t s e l f 
o r   b y   re p o r t i n g   o n   t h e   re s u l t s   o f   e v a l u a t i o n s   m a d e   a f t e r   a i d 
i nte r ve nt i o n s   h ave   c l o s e d.   At   t h e   s a m e   t i m e   t h e y   d o   n o t   a d-
e q u ate l y   a d d re s s   f i n a n c i a l   m a n a g e m e nt   i s s u e s   fo r   w h i c h   t h e 
he ad  o f  del eg at ion  as   s ub delegate d  auth or i si n g  of f ice r   i s  re -
sp on sib l e.

60.  

T h e   e v a l u a t i o n s   c a r r i e d   o u t   b y   t h e   C o m m i s s i o n’s   h e a d q u a r-
t e r s’  a i d   e v a l u a t i o n   u n i t   ( s e e   p a r a g r a p h   2 7 )   a r e   a v a i l a b l e   t o 
d e l e g a t i o n s   t h r o u g h   E u r o p e A i d ’s   p u b l i c   w e b s i t e .   H o w e v e r, 
the findings of the evaluations contrac ted by delegations are 
n o t   s ys te m at i c a l l y   m a d e   u s e   o f   by   Co m m i s s i o n   h e a d q u a r te r s 
 because there is no central database for holding and analysing 
suc h e val uatio ns.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

CONCLUSIONS AND 
RECOMMENDATIONS

35

O V E R A L L 	 CO N C LU S I O N S

61.   Devolution has contributed to improving aid deliver y as a key 
p a r t   o f   t h e   Co m m i s s i o n’s   w i d e r   re fo r m   o f   i t s   m a n a g e m e nt   o f 
e x t e r n a l   a s s i s t a n c e   o ve r   t h e   l a s t   d e c a d e.  T h e   i m p r o ve m e n t s 
a r e   m o s t   e v i d e n t   i n   t h e   a r e a s   o f   t h e   s p e e d   o f   d e l i v e r y   a n d 
the robustness of the financial management procedures. Some 
i n d i c a t o r s   a l s o   p o i n t   t o   i m p r o v e m e n t s   i n   t h e   q u a l i t y   o f   a i d , 
although the Commission system for measuring the qualit y of 
aid is not yet sufficiently developed to allow fir m conclusions 
to  be  draw n.

62.  

The audit, never theless, also found that several shor tcomings 
i n   t h e   wo r k i n g   o f   t h e   d e vo l ve d   m a n a g e m e nt   s ys te m   p re ve nt 
the   fu ll   p o te nt ial   ben efits  o f  devol ut ion   f rom  bei ng   re ali se d. 
D e l e g a t i o n s   f a c e   a   n u m b e r   o f   c h a l l e n g e s   t o   m a k e   t h e   b e s t 
a l l o c a t i o n   a n d   u s e   o f   e x i s t i n g   r e s o u r c e s .   A t   t h e   s a m e   t i m e 
E u r o p e A i d   h a s   d i f f i c u l t y   i n   p r o v i d i n g   a d e q u a t e   s u p p o r t   t o 
del eg atio ns  to  en su re  aid  inter ve nti ons   are   of   a  h ig h   quali t y, 
despite the significant effor ts it has made in this respec t. The 
Co mm issio n  has  no t  ful l y  taken  ad vant ag e  of   t h e  gre ater   op -
por tunities arising from devolution for improving aid through 
in - cou ntr y dial og ue an d on -th e - spot  mon i tor in g.

63.  

Th e re o rg anisatio n of  Euro p eAid fol lowi n g t he  e st ablish me nt 
o f   t h e   E E A S   p r o v i d e s   a n   o p p o r t u n i t y   f o r   t h e   C o m m i s s i o n   t o 
tac k l e  t he iss ues h ighl ighted in  th i s repor t.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

36

S P E C I F I C 	 CO N C LU S I O N S 	 A N D	
R E CO M M E N D AT I O N S

64.  

Th e   Co m m i s s i o n   h a s   b e e n   a b l e   to   b o t h   co m m i t   a n d   d i s b u r s e 
mo re  aid since  t he ad vent o f devoluti on . As  a re sult  th e Com-
m i s s i o n   h a s   a v o i d e d   t h e   r i s k   t h a t   l a r g e r   a l l o c a t i o n s   o f   a i d 
m i g h t   l e a d   t o   a   b a c k l o g   o f   u n s p e n t   f u n d i n g.   H owe ve r,   s o m e 
t i m e   c a n   e l a p s e   b e t w e e n   t h e   C o m m i s s i o n   p a y m e n t   a n d   t h e 
a c t u a l   i m p l e m e n t a t i o n   o f   t h e   a i d,   a n d   t h i s   i s   s o m e t h i n g   n o t 
sufficiently addressed by the Commission’s current indicators.

R E C O M M E N D AT I O N 	 1

T h e   Co m m issi o n   s h o u l d   co m p l e m e nt   b u d g e t   e xe c u t i o n   as 
a n   i n d i c a t o r   o f   s p e e d   w i t h   o t h e r   i n d i c a t o r s   t o   a l l o w   i t   t o 
b e t te r ass e ss th e sp e e d o f a c tua l ai d imp l e m e nt ati o n . 

65.  

 T h e   Co m m i s s i o n   h a s   a l r e a d y   m a d e   s i g n i f i c a n t   e f fo r t s   t o   i m -
p rove   t h e   q u a l i t y   o f   i t s   a i d   a n d   s o m e   i n d i c ato r s   p o i nt   to   t h e 
achievement of better results. Never theless, the Commission’s 
s y s t e m s   f o r   m e a s u r i n g   q u a l i t y   a r e   n o t   v e r y   r o b u s t   a n d   t h e 
Commission places too much reliance on its ex ternal monitor -
i n g   s y s t e m   ( R O M )   f o r   t h i s   p u r p o s e .   D e l e g a t i o n s   t h e m s e l v e s 
do no t  car r y o u t asses s ments of t he  ef fe c ti ve n es s  of  th e ir  ai d 
i nte r ve nt i o n s   a n d   t h e   e va l u at i o n s   co nt ra c te d   by   d e l e g at i o n s 
are no t a dequatel y  exp l oited  for  t h is  pur pos e.

R E C O M M E N D AT I O N 	 2

The Commission should take steps to improve its system for 
m e asu r in g  th e quali t y o f i t s  e x te r n al ai d as  f o ll ow s:

( a) 

 de le gat ions  sh oul d  c ar r y   ou t  asse ss me nt s  of   th e   ef fec -
t ivene ss  o f all  co mp l eted aid inte r ve nti on s ;

( b) 

 t h e    i nd ep en de nt     eva l u at io ns   contra c te d   by   t h e   Com -
mission should include quantitative assessments to en -
a b l e   t h e   e f fe c t i ve n e s s   o f   a i d   i nte r ve n t i o n s   to   b e   m o re 
cl ea r l y as ses sed.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

37

66.  

E u r o p e A i d   h a s   m a d e   s i g n i f i c a n t   p r o g r e s s   i n   i m p r o v i n g   t h e 
r o b u s t n e s s   o f   i t s   f i n a n c i a l   m a n a g e m e n t   p r o c e d u r e s   e v e n   i f 
so me  we ak nes se s  remain.   S ince   2 0 0 8   i t  h as   be en   i mple ment-
i n g   a   co m p re h e n s i ve   co nt ro l   s t r ate g y   a n d   i s   f u r t h e r   re f i n i n g 
it through an ongoing analysis of the costs and benefits of its 
contro l s.

R E C O M M E N D AT I O N 	 3

The Commission should monitor closely the implementation 
o f  i t s  n ew  co nt ro l  s t r ate g y,  b oth   at  th e   l eve l   o f   Euro p e Ai d 
a n d   t h e   d e l e g a t i o n s ,   i n   o r d e r   to   o b t a i n   r e l i a b l e   a n d   co m -
p l e te inf o r m ati o n to ass e ss i t s  cos t s  an d b e n e f i t s .

67.  

T h e   C o m m i s s i o n   f a c e s   a   n u m b e r   o f   c h a l l e n g e s   t o   e n s u r e 
t h e   b e s t   a l l o c a t i o n   a n d   u s e   o f   e x i s t i n g   s t a f f   r e s o u r c e s   i n   i t s 
 d e l e g a t i o n s   i n   a   c o n t e x t   o f   a   z e r o   g r o w t h   p o l i c y   f o r   h u m a n 
r e s o u r c e s .  T h e s e   c h a l l e n g e s   i n c l u d e   t h e   b a l a n c e   o f   s t a f f i n g 
b e t we e n   a i d   m a n a g e m e n t   a n d   o t h e r   f u n c t i o n s,   t h e   h i g h   v a -
c a n c y   r a t e   a m o n g s t   c o n t r a c t   s t a f f,   a n d   t h e   n e e d   fo r   i t s   s t a f f 
t o   d e v e l o p   s k i l l s   f o r   m a n a g i n g   n e w   a i d   m o d a l i t i e s .   T h e   a i d 
managed by individual delegations continues to cover a wide 
range of areas, despite the effor ts the Commission has made to 
improve coordination with other donors, and this puts fur ther 
pre ssu re on  d el egatio ns’ resources.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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R E C O M M E N D AT I O N 	 4

In order to help tack le the human resources challenge faced 
by  EU d e l e g ati o ns , th e Co mm issi o n  sh o u l d:

ca r r y o ut  a n anal ysis  o f :

( a) 

( i) 

 the work load within delegations to conclude on the 
ade qu ac y o f st a ffing  levels bet we e n  del eg at ion s;

( ii)

 t h e   b a l a n c e   o f   d e l e g a t i o n s ’  s t a f f i n g   b e t w e e n   a i d 
ma nag ement an d ot her fun c t ion s;

( iii

 t h e   ex p e r t i s e   o f   d e l e g at i o n   s t a f f   i n   o rd e r   to   a s s i gn 
staff to delegations where their sk ills are most need-
ed  and  id ent ify s k il l gaps  to be  fi l led ;

)

( b) 

m a k e   f u r t h e r   e f fo r t s   t o   re d u c e   t h e   n u m b e r   o f   a re a s   o f 
inter vent ion  in w hic h it is ac tive ly  i nvolve d, i n  par t ic u -
lar through closer coordination with EU M ember States;

( c) 

make greater use of Member States’ exper tise in par tner 
co unt r ies.

68.  

EuropeAid has made significant effor ts to suppor t delegations 
i n   i m p ro v i n g   t h e   q u a l i t y   o f   a i d   i n t e r v e n t i o n s.   H o we ve r,   i t   i s 
h i n d e re d   i n   t h i s   by   a   h i g h   t u r n ove r   r a te   d u e   to   t h e   f a c t   t h a t 
4 0   %   o f   i t s   s t a f f   a re   o n   t h re e - ye a r   n o n - re n e w a b l e   c o n t r a c t s. 
This makes it difficult to build up and retain a solid foundation 
of exper tise and is inefficient. EuropeAid has developed a wide 
ra n g e   o f   g u i d a n ce   fo r   d e l e g a t i o n s   a l t h o u g h   m o re   s u p p o r t   i s 
stil l  required  in  the k ey area of  pol ic y  d i alog ue.

R E C O M M E N D AT I O N 	 5

I n  o rd e r to  s t re n g th e n su p p o r t   to d e l e g ati o ns:

( a) 

t h e   C o m m i s s i o n   s h o u l d   t a k e   s t e p s   t o   r e d u c e   t h e   h i g h 
rate  of  tu r n ove r amo ng s taf f in  Euro peAi d;

( b) 

EuropeAid should develop improved guidance for polic y 
dial o g ue.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

 
 
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69.   Delegations have not made sufficient use of the oppor tunities 
p ro v i d e d   b y   d e vo l u t i o n   fo r   o n - t h e - s p o t   m o n i t o r i n g   v i s i t s   t o 
a i d   i n te r ve n t i o n s   w i t h   a   v i e w   to   i m p rov i n g   t h e i r   q u a l i t y   a n d 
f i n a n c i a l   m a n a g e m e n t   a n d   r e p o r t i n g   o n   r e s u l t s .   I n   g e n e r a l , 
d e l e g at i o n   re p o r t i n g   to   Eu ro p e A i d   h a s   fo c u s e d   to o   m u c h   o n 
ac tivities and duplicates repor ting in CRIS. Commission head-
quar ters do not make sufficient use of the ex ternal, independ-
ent  e val uatio ns  contrac ted by d ele g ati on s.

R E C O M M E N D AT I O N 	 6

T he Commission should s trengthen the monitoring, rep or t-
i n g   a n d   e v a l u a t i o n   w i t h i n   t h e   d e vo l ve d   m a n a g e m e nt   s y s -
te m  by :

( a) 

 requiring delegations to systematically carr y out techni-
cal and financial monitoring visits to projec ts within the 
framework of a monitoring strategy for each delegation;

( b) 

 foc us ing  the inter n al repor t in g sys tem m ore  on  th e  re -
su l ts  ac hieved by  the aid inter ve nti on s;

( c) 

 in  t he  co ntex t   of   s ettin g  up  t he   E E AS,   e nsu r i ng   t h e  e f -
fec tive implementation of the new legal provisions pro -
p os ed  for ho ld ing h eads of d ele gat ion s accounta ble a s 
su b del e gated au th or is ing office r s.

This Repor t was adopted by Chamber III, headed by Jan KINŠT, 
Member of the Cour t of Auditors, in Luxembourg at its meeting 
of  1 Febr uar y 2 01 1.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA
President

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

  
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A N N E X

R E C E N T 	 P E R F O R M A N C E 	 AU D I T S 	 ( 2 0 07 – 10 ) 	 O F 	 D E V E LO P M E N T	
A S S I S TA N C E 	 BY 	T H E 	 E U R O P E A N 	 CO U R T 	 O F 	 AU D I TO R S

S p e c i a l   R e p o r t   N o   6 / 2 0 0 7   o n   t h e   e f fe c t i ve n e s s   o f   te c h n i c a l   a s s i s t a n ce   i n   t h e   co ntex t   o f 
cap acit y de ve lo p ment.

Spe cial  R ep or t  No 6 /2008 on  Europea n Commi ss i on reh abi li tat ion a id followin g t h e Tsu-
na mi and H u r r ic ane M itch .

Spe cial   R ep o r t   No   9 /2008  o n  th e  ef fe c ti ve n es s  of   E U   s uppor t   i n   t h e  a rea  of   f reed om,  s e -
cur it y an d ju st ice fo r B el aru s, M oldova a nd  Uk rai ne.

Spe cial   R ep o r t  N o  10 /2008  on   th e   E C  de ve lopm ent  as si st an ce   to  h ealt h  ser v ices   i n  Sub -
S ah ara n Afr ica.

Special R epor t No 4/2009 on the Commission’s management of non-state ac tors’ involve -
ment in  EC  de vel o p ment coo perat ion .

S p e c i a l   R e p o r t   N o   1 5 / 2 0 0 9   o n   t h e   E U   a s s i s t a n c e   i m p l e m e n t e d   t h ro u g h   U n i t e d   N a t i o n s 
org anis at io ns : decis ion -mak ing  an d  mon itor i n g.

S p e c i a l   R e p o r t   N o   1 8 / 2 0 0 9   o n   t h e   e f fe c t i v e n e s s   o f   E D F   s u p p o r t   fo r   r e g i o n a l   e c o n o m i c 
integratio n in Eas t Afr ica an d We s t Af r i ca.

Spe cial  R e po r t  No  11/2010  on  th e Commi s si on’s  man a ge me nt of  gen era l b ud get  su ppor t 
in ACP,  Latin Am er ican  and Asian  count r i es.

Special R epor t No 12/2010 on the EU development assistance for basic education in Sub -
S ah ara n Afr ica and S o ut h Asia.

S p e c i a l   R e p o r t   N o   1 3 / 2 0 1 0   o n   t h e   a u d i t  ‘ I s   t h e   n e w   Eu ro p e a n   N e i g h b o u r h o o d   a n d   Pa r t -
nership I nstrument successfully launched and achieving results in the Southern Caucasus 
(Ar m enia, A zer baij an and G eorgi a) ?’.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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REPLY OF THE 
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EXECUTIVE	SUMMARY

III.
T h e   C o m m i s s i o n   w e l c o m e s   t h e   C o u r t ‘ s 
f i n d i n g s   t h at   d e vo l u t i o n   h a s   i n c re a s e d   t h e 
s p e e d   o f   a i d   d e l i ve r y,   s t re n g t h e n e d   f i n a n -
c i a l   m a n a g e m e n t   a n d   t h a t   i n d i c a t o r s   a l s o 
p o i n t   t o   i m p r o v e m e n t s   i n   t h e   q u a l i t y   o f 
aid. 

III.	(b)	
W h i l e   t h e   C o m m i s s i o n   i s   a l w a y s   s t r i v i n g 
t o   i m p r o v e   t h e   q u a l i t y   o f   i t s   e x t e r n a l   a i d 
por tfolio and would like to offer more sup -
p o r t   t o   d e l e g a t i o n s ,   i t   b e l i e v e s   t h a t   t h e 
q u a l i t y   s u p p o r t   a r c h i t e c t u r e   e s t a b l i s h e d 
s i n ce   d e vo l u t i o n   i s   ve r y   ro b u s t   a n d   i s   c u r-
re n t l y   p rov i d i n g   a i d   i n te r ve n t i o n s   o f   h i g h 
qualit y. 

A s   r e g a r d s  ‘q u a l i t y   i n d i c a t o r s ‘,   t h e   C o m -
m i s s i o n   s h a r e s   t h e   C o u r t ‘s   a n a l y s i s   t h a t 
—   a f t e r   t h e   s i g n i f i c a n t   e m p h a s i s   o n   s u p -
p o r t i n g   a n d   i m p rov i n g   q u a l i t y   s i n ce   d e vo -
l u t i o n   —   m o re   e m p h a s i s   m ay   n ow   n e e d   to 
be placed o n meas ur in g qu al it y.

IV.	(a)	
R e g a r d i n g   t h e   a l l o c a t i o n   o f   h u m a n 
r e s o u r c e s   i n   d e l e g a t i o n s ,   t h e   c r e a t i o n 
o f   t h e   E E A S   w i l l   b r i n g   a   c l e a r   s e p a r a t i o n 
b e t w e e n   t h e   E E A S ‘s   p o l i t i c a l   a n d   a d m i n -
i s t r a t i v e   t a s k s   a n d   t h e   C o m m i s s i o n ‘s   a i d 
mana geme nt  task s. 

R e c r u i t m e n t   p r o c e d u r e s   f o r   c o n t r a c t 
a g e n t s   i n   d e l e g a t i o n s   h a v e   b e e n   s i m p l i -
fied and speeded up by giving delegations 
d i r e c t   a c c e s s   t o   r e s e r v e   l i s t s   o f   p o t e n t i a l 
c a n d i d a t e s   s i n c e   l a t e   2 0 0 9 .   T h e   o v e r a l l 
l e v e l   o f   v a c a n c y   r a t e s   o f   c o n t r a c t   a g e n t s 
i n   d e l e g at i o n s   wa s   re d u ce d   f ro m   1 4 , 5 %   at 
t h e   e n d   o f   D e c e m b e r   2 0 0 9   t o   9 , 3  %   a t   t h e 
en d of S e ptember  2 0 10. 

C o n c e r n i n g   t h e   n u m b e r   o f   s e c t o r s   i n 
which delegations and other EU donors are 
i nvo l ve d,   c o n c re t e   s t e p s   h a ve   b e e n   t a k e n 
i n   s e v e r a l   c o u n t r i e s   t o   l i m i t   t h e   n u m b e r 
o f   i nte r ve nt i o n   s e c to r s   b u t   t h e  ‘d i v i s i o n   o f 
labour ‘ proces s re main s slow.

I V.	(b)
T h e   s i t u a t i o n   d e s c r i b e d   b y   t h e   C o u r t 
r e g a r d i n g   t h e   h i g h   t u r n o v e r   o f   c o n t r a c t 
s t a f f   i n   h e a d q u a r t e r s   a n d   t h e   r e l a t e d   d i f -
f i c u l t y   i n   p r o v i d i n g   s u f f i c i e n t   s u p p o r t 
t o   d e l e g a t i o n s   r e f l e c t s   t h e   c h a l l e n g e s 
E u r o p e A i d   i s   f a c i n g   i n   t e r m s   o f   h u m a n 
resources with  the con straint of  th e th re e -
ye a r   n o n - re n e wa b l e   co nt ra c t s   fo r   co nt ra c t 
age nt s. 

I n   o r d e r   t o   m i t i g a t e   t h e   l o s s   o f   i n s t i t u -
t i o n a l   m e m o r y,   a   s t r i c t   h a n d o v e r   p r o c e s s 
h as been  implemente d. 

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

IV.	(c)	
A l t h o u g h   o n - t h e - s p o t   m o n i t o r i n g   o f   a i d 
a c t i v i t i e s   i s   a n   i m p o r t a n t   c o m p o n e n t   o f 
m o n i t o r i n g ,   t h e   m o n i t o r i n g   t a s k s   o f   t h e 
p ro j e c t   m a n a g e r   a l s o   ex te n d   to   co l l e c t i n g 
i n f o r m a t i o n   f r o m   t h e   p r o j e c t ,   r e v i e w i n g 
inter im repor ts, conduc ting discussions on 
i n d i c a t o r s   a n d   o t h e r   t y p e s   o f   d i r e c t   c o n -
t a c t .   D e l e g a t i o n s   h a v e   d e v e l o p e d   t h e i r 
o w n   m o n i t o r i n g   s y s t e m s   w i t h   d i f f e r e n t 
d e g r e e s   o f   s o p h i s t i c a t i o n   u s i n g   g u i d a n c e 
and  training p rovided by  headq ua r te r s. 

S ee a lso re pl y to p aragrap h 56.

INTRODUCTION

4.
I n   l i n e   w i t h   R e c o m m e n d a t i o n   2 3 . d   o f   t h e 
A c c r a   A g e n d a   f o r   A c t i o n   ( A A A ) ,   t h e   C o m -
m i s s i o n   h a s   e n s u re d   co n t i n u o u s   c a p a c i t y-
b u i l d i n g   o f   d e l e g a t i o n s   b y   r e g u l a r   t r a i n -
i n g   a n d   a w a r e n e s s - r a i s i n g   p r o g r a m m e s . 
D e d i c a t e d   a i d   e f fe c t i v e n e s s   t r a i n i n g   p r o -
g r a m m e s   w e r e   r e g u l a r l y   h e l d   a n d   s e v e r a l 
r e g i o n a l   w o r k s h o p s   w e r e   a l s o   o r g a n i s e d . 
D u e   t o   t h e   s t e a d y   d e m a n d,   t h e   d e d i c a t e d 
t ra i n i n g   p ro gra m m e   w a s   l e n g t h e n e d   f ro m 
1 , 5   to   3   d ays   i n   2 0 0 9 .  To   p ro m o te   d i v i s i o n 
o f   l a b o u r   ( D o L )   b e t w e e n   t h e   C o m m i s s i o n 
a n d   E U   M e m b e r   S t a t e s ,   E U   d e l e g a t i o n s 
h a v e   b e c o m e   l e a d   f a c i l i t a t o r   i n   f o u r   D o L 
f a s t- t ra c k   co u nt r i e s   a n d   s u p p o r t i n g   f a c i l i-
tator in 12 o th ers.

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AUDIT	SCOPE	AND	APPROACH

9 .	
T h e   i m p l e m e n t a t i o n   o f   e x t e r n a l   a i d 
r e m a i n s   t h e   r e s p o n s i b i l i t y   o f   E u r o p e A i d 
a n d   t h e   E n l a r g e m e n t   D G ,   e v e n   a f t e r   t h e 
est ablishment of th e EEAS .

OBSERVATIONS

1 5.
T h e   C o u r t ‘s   f i g u r e s   r e g a r d i n g   t h e   s p e e d 
w i t h   w h i c h   c o m m i t m e n t s   h a v e   b e e n   c o n -
t ra c te d   s i n ce   2 0 0 4 ,   t h o u g h   co r re c t,   d o   n o t 
c o n c e r n   a l l   c o m m i t m e n t s .   T h e y   c o n c e r n 
t h o s e   c o m m i t m e n t s   s u b j e c t   t o   t h e   D   +   3 
r u l e   —   5 6  %   o f   c o m m i t m e n t s   b y   v a l u e   o n 
a v e r a g e   o v e r   t h e   l a s t   t h r e e   y e a r s :   2 0 0 7 , 
2 0 0 8   a n d   2 0 0 9 ,   w h e r e   a   f i n a n c i n g   a g r e e -
m e n t   w i t h   a   b e n e f i c i a r y   c o u n t r y   h a s   b e e n 
s i g n e d   a n d   3 6   m o n t h s   i s   a l l o w e d   fo r   c o n -
t r a c t i n g .   T h e   c o m m i t m e n t s   s u b j e c t   t o 
o t h e r   r u l e s   —   4 4  %   o f   c o m m i t m e n t s   b y 
va l u e   o n   ave ra g e   ove r   t h e   l a s t   t h re e   ye a r s 
( w h e re   t h e re   i s   n o t   a   f i n a n c i n g   a gre e m e nt 
w i t h   a   b e n e f i c i a r y   c o u n t r y   a n d   t h e   C o m -
m i s s i o n   i s   d i r e c t l y   r e s p o n s i b l e   f o r   c o n -
t r a c t i n g )   w h e r e   c o n t r a c t s   m u s t   b e   c o m -
p l e t e d   by   t h e   e n d   o f   t h e   c a l e n d a r   ye a r,   o r 
t h e   fo l l ow i n g   ye a r   —   s h ow   a n   e ve n   h i g h e r 
r a t e   o f   c o n t r a c t i n g   ( o f   9 9  % )   i n   r e c e n t 
year s.

1 7.
B u d g e t   e x e c u t i o n   i n d i c a t o r s   a r e   a   u s e -
f u l   a n d   v a l u a b l e   t o o l   fo r   t h e   Co m m i s s i o n . 
U s e d   i n   c o n j u n c t i o n   w i t h   r e g u l a r   m o n i -
t o r i n g   a n d   r e p o r t i n g   t h e y   p r o v i d e   g o o d 
information on time required for aid imple -
mentation. Final payments cannot be made 
u n t i l   t h e   a c t i v i t i e s   h a v e   b e e n   c o m p l e t e d 
and final beneficiar ies have benefited from 
th e projec t.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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1 7.	(c )	
I n   g e n e ra l   t h e   Co m m i s s i o n ‘s   ex p e r i e n ce   i s 
t h a t   E D F   p ro gr a m m e   e s t i m a te s   a re   i m p l e -
mented on sc he dule.

2 1.
T h e   e x t e r n a l   R e s u l t s   O r i e n t e d   M o n i t o r i n g  
S y s t e m   ( R O M )   i s   u s e d   a s   t h e   k e y   q u a n t i -
t a t i v e   i n d i c a t o r   f o r   a n   o v e r v i e w   o f   t h e 
q u a l i t y   o f   t h e   d e v e l o p m e n t   a s s i s t a n c e 
p o r t fo l i o   o ve r a l l.   I n   a d d i t i o n ,   e v a l u a t i o n s 
car r ied out by the Commission‘s headquar-
t e r s ’  a i d   e v a l u a t i o n   u n i t   o n   t h e   c o u n t r y, 
s e c t o r   o r   s t r a t e g i c   l e ve l   p ro v i d e   i n - d e p t h 
a n a l ys i s   o f   t h e   E U   d e ve l o p m e nt   a s s i s t a n ce 
per for man ce, results and impac t. 

T h e   C o m m i s s i o n   c o n s i d e r s   t h a t   t h e   e l e -
m e n t s   c i t e d   i n   p a r a g r a p h   3 0   a l s o   p r o -
v i d e   e s s e n t i a l   q u a l i t a t i v e   i n fo r m a t i o n   fo r 
ass essin g qualit y  improvement. 

2 4.
W h i l e   t h e   t r e n d s   i d e n t i f i e d   i n   R O M   d a t a 
f r o m   2 0 0 5   t o   2 0 0 8   a r e   e n t i r e l y   v a l i d ,   t h e 
c h a n g e   i n   t h e   R O M   m e t h o d o l o g y   i n   2 0 0 9 
m e a n s   t h a t   s u c h   c o m p a r i s o n s   c a n n o t   b e 
made  in relation  to 20 0 9 data.

2 4.	(a)
G o o d   a n d   v e r y   g o o d   g r a d e s   o n   r e l e v a n c e 
a n d   d e s i g n   h a v e   i n c r e a s e d   s t e a d i l y   f r o m 
68 % in 2005 to 72 % in 2008, and those for 
i m p a c t   h a v e   i n c r e a s e d   f r o m   6 9  %   t o   7 4  % 
over t he  sa me per iod. 

Th e   n e w   b a s e l i n e   s co re s   fo r   re l e va n ce   a n d 
i m p a c t   i n   2 0 0 9   a re   8 2  %   a n d   7 8  %   re s p e c -
tively.

17.	(a)
The Commission does not share the Cour t ‘s 
a n a l ys i s   a n d   b e l i e ve s   t h at   b u d g e t   s u p p o r t 
payment rates are indeed meaning ful indi -
c a t o r s   o f   t h e   t i m e   r e q u i r e d   f o r   a i d   t o   b e 
disbursed  to  f inal  b enef ic iar ies fo r  th e fol -
lowing reaso ns.

F i r s t l y ,   b u d g e t   s u p p o r t   f u n d s   a r e   d i s -
b u r s e d   i n t o   t h e   C e n t r a l  Tr e a s u r y   Ac c o u n t 
w h e r e   t h e y   a r e   m i x e d   u p   w i t h   d o m e s t i c 
budget re so urces. They are  no t  tracea bl e.

S econdly, they suppor t gover nments‘ poli-
c i e s   a n d   a r e   p a i d   a g a i n s t   p r o g r e s s ,   i . e . 
o n c e   t h e   a g r e e d   r e f o r m s   o r   r e s u l t s   h a v e 
been achieved by the par tner gover nment. 
T h e r e f o r e ,   w h e n   t h e   p a y m e n t   i s   t r a n s -
f e r r e d ,   t h e s e   a c h i e v e m e n t s   h a v e   a l r e a d y 
been  made.

T h i r d l y,   t o   e n s u r e   p r e d i c t a b i l i t y,   t h e y   a r e 
d i s b u r s e d   w i t h i n   a   f i s c a l   ye a r   i n d i c ate d   i n 
t h e   f i n a n c i n g   a g r e e m e n t   ( p r o v i d e d   c o n -
d i t i o n s   a r e   m e t )   a n d   s u p p o r t   t h e   w h o l e 
b u d g e t   u n d e r   i m p l e m e nt at i o n   d u r i n g   t h at 
year.

17.	(b)	
U n d e r   j o i n t   m a n a g e m e n t   w i t h   i n t e r n a -
t i o n a l   o rg a n i s a t i o n s   o r   w i t h   i n t e r n a t i o n a l 
i n i t i a t i v e s ,   t h e   C o m m i s s i o n   p r o v i d e s 
p r e - f i n a n c i n g   o f   t h e   f o r e c a s t   b u d g e t   f o r 
t h e   f i r s t   1 2   m o n t h s   o f   t h e   a c t i o n   t o   t h e 
i n t e r n a t i o n a l   o r g a n i s a t i o n .   T h e s e   f u n d s 
a r e   t h e n   u s e d   i n   a c c o r d a n c e   w i t h   t h e 
approved wor k plan submitted by the inter-
n a t i o n a l   o r g a n i s a t i o n .   R e g u l a r   p r o g r e s s 
r e p o r t i n g   b y   t h e   o r g a n i s a t i o n   a n d   m o n i -
t o r i n g   i n d i c a t e   w h e t h e r   t h e   w o r k p l a n 
re m a i n s   o n   t r a c k ,   t h e   e x t e n t   t o   w h i c h   t h e 
r e s u l t s   o f   t h e   p r o j e c t   a r e   b e i n g   a c h i e v e d 
a n d   t h e   i m p a c t   o n   t h e   f i n a l   b e n e f i c i a r -
i e s .   Fi n a l   p a y m e n t s   a r e   m a d e   o n l y   w h e n 
p r o j e c t s   h a v e   b e e n   f u l l y   c o m p l e t e d   a n d 
final repor ts received.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

24.	(b)
I ndicator scores for efficienc y and sustain-
a b i l i t y   h a v e   i n c r e a s e d   f r o m   6 0  %   t o   6 2  % 
a n d   f ro m   6 9  %   t o   7 4  %   re s p e c t i ve l y   i n   t h e 
per iod 2005 to 2008. 

Th e   n e w   b a s e l i n e   s co re s   fo r   e f f i c i e n c y   a n d 
s u s t a i n a b i l i t y   i n   2 0 0 9   a r e   6 3  %   a n d   6 9  % 
res pec tivel y. 

24.	(c)
E f f e c t i v e n e s s   h a s   i m p r o v e d   f r o m   6 5  %   t o 
7 0  %   i n   t h e   p e r i o d   2 0 0 5   t o   2 0 0 8 .  T h e   n e w 
b a s e l i n e   s co re   fo r   e f fe c t i ve n e s s   i n   2 0 0 9   i s 
61 %.

24.	(d)
D u e   t o   t h e   c h a n g e   i n   t h e   R O M   m e t h o d -
o l o g y   i n   2 0 0 9 ,   t h e r e   i s   n o   e v i d e n c e   t h a t 
t h e r e   h a s   b e e n   a n   i n c r e a s e   o r   a   d e c r e a s e 
i n   e f fe c t i ve n e s s   o r   re l e va n ce   ( o r   a ny   o t h e r 
individual  cr iter ion) fo r p ro jec ts  i n  2 0 0 9 . 

T h e   n e w   m e t h o d o l o g y   p r o v i d e s   a   n e w 
b a s e l i n e   fo r   c o m p a r a t i ve   d a t a   o n   s p e c i f i c 
cr iter ia  from  20 09  onwards.

25.
T h e   R O M   s y s t e m   w a s   d e v e l o p e d   t o   m o n i -
t o r   a n d   i m p r o v e   t h e   i m p l e m e n t a t i o n   o f 
p ro j e c t s.   S u b s e q u e nt l y   t h e   a g gre g at i o n   o f 
R O M   d a t a   o n   t h e   p o r t fo l i o   a s   a   w h o l e   w a s 
added as a prox y indicator for an over view 
o f   t h e   p o r t f o l i o ‘s   p e r f o r m a n c e ;   h o w e v e r, 
th is  is  no t R OM‘s  p r imar y  p u r p o s e. 

44

REPLY OF THE 
COMMISSION

2 5.	(c )
S u p p o r t   p r o g r a m m e s   f o r   s e c t o r   p o l i c i e s 
—   e s p e c i a l l y   u s i n g   b u d g e t   s u p p o r t   — 
i n c l u d e   a n   i nte r n a l   m o n i to r i n g   m e c h a n i s m 
( b u i l d i n g   o n   t h e   p e r fo r m a n c e   a s s e s s m e n t 
f r a m e w o r k )   w h i c h   r e s p e c t s   t h e   p r i n c i p l e s 
o f   p a r t n e r   g o v e r n m e n t   o w n e r s h i p   a n d 
d o n o r   c o o r d i n a t i o n .   T h e   C o m m i s s i o n   w i l l 
engage in an analysis of the existing inter-
n a l   m o n i t o r i n g   a n d   r e p o r t i n g   s y s t e m s   fo r 
b u d g e t   s u p p o r t   t o   i d e n t i f y   t h e   p o t e n t i a l 
f o r   i m p r o v e m e n t s   a n d   t h e   n e e d   f o r   a d d i -
tion al tools.

2 6.
R O M   u n d e r t a k e n   a f t e r   p r o j e c t   o p e r a t i o n s 
have closed (k nown as ex-post ROM) mainly 
ser ves to contr ibute to lessons lear ned and 
t h e   d e s i g n   o f   n e w   p r o j e c t s .   E v e n   t h o u g h 
t h e   c u r r e n t   r e s o u r c e s   f o r   R O M   o n l y   a l l o w 
for 10 % of ex-p ost R OM, this tool has accu -
mulated a great amount of k nowledge over 
th e year s. 

U n d e r   c u r r e n t   p r a c t i c e   t h e   s a m p l e   o f   e x -
p o s t   R O M   i s   to o   l i m i te d   to   p rov i d e   i n d i c a -
t o r s   o n   t h e   p o r t f o l i o   a s   a   w h o l e   t h r o u g h 
aggreg ated dat a.

2 9.
Th e   i n d i c ato r   re fe r re d   to   by   t h e   Co u r t   ( i . e. 
p e r c e n t a g e   o f   c o m m i t m e n t s   a l l o c a t e d 
t o   b u d g e t   s u p p o r t   p r o g r a m m e s )   w a s   n o t 
d e s i g n e d   t o   m e a s u r e   t h e  ‘u l t i m a t e   q u a l -
it y ‘ of aid in ter ms of its results and impac t 
o n   p o v e r t y   r e d u c t i o n .   T h e   o b j e c t i v e   w a s 
t o   i n fo r m   t h e   p o l i t i c a l   l e v e l   o n   t h e   q u a n -
t i t a t i v e   e v o l u t i o n   o f   a   r e l a t i v e l y   n e w   a i d 
m o d a l i t y   c o n s i d e r e d   a s   t h e   p r e f e r r e d 
m e c h a n i s m   i n   t h e   Eu ro p e a n   Co n s e n s u s   o n 
D evelopment.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

4545

REPLY OF THE 
COMMISSION

4 0.
M a k i n g   t h e   b e s t   a l l o c a t i o n   a n d   u s e   o f 
e x i s t i n g   r e s o u r c e s   f o r   e n s u r i n g   t h e   f u l l 
b e n e f i t s   o f   d e v o l u t i o n   h a s   a l w a y s   b e e n   a 
Commission  pr ior it y. 

H o w e v e r,   d e v o l u t i o n   h a s   a n   u n d e n i a b l e 
c o s t   i n   t e r m s   o f   h u m a n   r e s o u r c e s   a s   i t 
increases the need for staff reinforcements 
a c r o s s   d e l e g a t i o n s .   T h i s   i s   w h y   t h e   C o m -
m i s s i o n ‘s   c o m m i t m e n t   t o   s e r ve   E U   p r i o r i -
t i e s   u p   to   2 0 1 3   u n d e r   c u r re nt   s t a f f i n g   ( t h e 
‘ z e r o   g r o w t h ‘   c o m m i t m e n t   m a d e   i n   t h e 
2 0 0 7   S c r e e n i n g   R e p o r t )   w a s   m a d e   w i t h   a 
c l e a r   re s e r v a t i o n   fo r   n o n - p e r m a n e n t   s t a f f 
i n   d e l e g a t i o n s,   p a r t i c u l a r l y   i n   v i e w   o f   t h e 
C o m m i s s i o n ‘ s   i n c r e a s i n g   a i d   p o r t f o l i o . 
Never theless the zero growth polic y means 
that the best allocation and use of existing 
resources is of paramount  im por tan ce.

S e e   a l s o   r e p l i e s   t o   R e c o m m e n d a t i o n s   4 
and 5.

4 2.
P o l i t i c a l   a n d   t r a d e   f u n c t i o n s   h a v e 
i n c re a s e d   w i t h   t h e   e n t r y   i n t o   fo rc e   o f   t h e 
L i s b o n   Tr e a t y,   w i t h   a d d i t i o n a l   t a s k s   a n d 
r e s p o n s i b i l i t i e s   f o r   E U   d e l e g a t i o n s .   A t 
t h e   s a m e   t i m e   t h e   w o r k l o a d   f o r   m a n a g -
i n g   e x t e r n a l   a i d   p r o g r a m m e s   c o n s t a n t l y 
in creas es and  e volves.

Co n t r a c t u a l   a n d   l o c a l   a g e n t s   a re   s e l e c t e d 
a n d   re c r u i t e d   o n   t h e   b a s i s   o f   t h e i r   e x p e r -
t i s e.  Th e y   u s u a l l y   h ave   a   m o re   s p e c i a l i s e d 
p ro f i l e   t h a n   o f f i c i a l s,   w h o   a re   ex p e c te d   to 
p e r fo r m   m o re   s u p e r v i s o r y   a n d   p o l y v a l e n t 
tas ks.

30.
I n   a d d i t i o n   t o   t h e   R O M ,   a   n u m b e r   o f   f a c -
to r s   co n t r i b u te   to   t h e   q u a l i t y   o f   t h e   Co m -
m i s s i o n ‘ s   a i d   i n t e r v e n t i o n s .   E x a m p l e s 
include training in EU delegation and Com-
m i s s i o n   h e a d q u a r te r s,   t h e   q u a l i t y   o f   o p e r-
ational guidance, the increasing number of 
‘o n   d e m a n d ‘   s u p p o r t   m i s s i o n s   t o   d e l e g a -
t i o n s   ( 2 3 4   i n   2 0 1 0 ,   a   d o u b l i n g   i n   r e l a t i o n 
to   2 0 0 8 ) ,   t h e   cove ra g e   a n d   co n te n t   o f   t h e 
e a r l y   p e e r   re v i e w   p ro ce s s   (e x - a n te   Q u a l i t y 
S u p p o r t   G r o u p )   a n d   r e f o r m   o f   t e c h n i c a l 
cooperatio n.

31.
S e e   r e p l i e s   t o   R e c o m m e n d a t i o n s   2 ,   4 ,   5 
and  6.

35.	(d)
T h e   C o m m i s s i o n   w e l c o m e s   a c k n o w l e d g e -
ment   of  pro gress   in   as sess ing  el i gi bi lit y  of 
p a r t n e r   co u nt r i e s   fo r   b u d g e t   s u p p o r t   p ro -
gra m m e s   a n d   d i s b u r s e m e nt s   a n d   i s   p u r s u -
i n g   e f f o r t s   t o   b e t t e r   s t r u c t u r e ,   f o r m a l i s e 
and  docu ment its  as s essme nt s.

36.
T h e   C o m m i s s i o n   i s   c o m m i t t e d   t o   f u r t h e r 
improving the super visor y and control sys -
tems  for  all ex ter nal  aid.

37.
T h e   C o m m i s s i o n   w e l c o m e s   t h e   C o u r t ‘ s 
o p i n i o n   t h a t   a l l   t r a n s a c t i o n s   u n d e r l y -
i n g   t h e   E u r o p e a n   D e v e l o p m e n t   F u n d s , 
a p p rox i m ate l y   h a l f   o f   t h e   Eu ro p e Ai d   p o r t-
fo l i o,   we re   l e g a l   a n d   re g u l a r   i n   2 0 0 9   i n   a l l 
mater ial respec ts, and is committed to fur -
t h e r   f i n a n c i a l   m a n a g e m e nt   i m p rove m e nt s 
th rougho ut  the  aid p or t fol io.

38.
T h e   C o m m i s s i o n   h a s   u n d e r t a k e n   a   s u b -
stantial review of the costs and benefits of 
its control strategies for ex ternal aid which 
will result in a Commission communication 
in 2011 .

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

46

REPLY OF THE 
COMMISSION

4 5.
T h e   m e t h o d o l o g y   u s e d   t o   c o n d u c t   t h e 
w o r k l o a d   a s s e s s m e n t   e x e r c i s e   i n   d e l e g a -
t i o n s   i s   b e i n g   f u r t h e r   d e v e l o p e d   f o r   t h e 
n e x t   e x e r c i s e .   T h e   w o r k l o a d   a s s e s s m e n t 
w i l l   p r o v i d e   a   b e t t e r   b a s i s   f o r   e n s u r -
i n g   i n   t e r m s   o f   b o t h   h u m a n   a n d   f i n a n c i a l 
re s o u rce s   t h e   a d e q u a c y   o f   s t a f f   i n   re l at i o n 
t o   t h e   d e l e g a t i o n s ‘   r e s p e c t i v e   p o r t f o l i o s 
an d development realities. 

A   re f l e c t i o n   o n   h ow   to   i m p rove   d e l i ve r y   o f 
ex p e r t i s e   s u p p o r t   w h e re ve r   a n d   w h e n e ve r 
n eeded is on going.

4 6.
T h e   C o m m i s s i o n   i s   a w a r e   o f   t h e   i m p o r -
t a n ce   o f   t h e   ava i l a b i l i t y   o f   re l e va nt   ex p e r -
t i s e   a n d   a d d r e s s e s   t h i s   i s s u e   i n   t h e   c o n -
tex t   o f   t h e   ro t at i o n   o f   s t a f f,   re c r u i t m e nt   o f 
c o n t r a c t   a g e n t s   a n d   t h e   d e v e l o p m e n t   o f 
a d d i t i o n a l   t r a i n i n g   c o u r s e s.  T h e   p r e s e n c e 
o f   q u a l i f i e d   s t a f f   o n   t h e   g r o u n d   i s   e s s e n -
tial to pursuing the regular polic y dialogue 
t h at   i s   f u n d a m e nt a l   to   t h e   g e n e ra l   b u d g e t 
suppor t instrument. However, each delega-
t i o n   c a n n o t   b e   s t a f f e d   w i t h   a l l   n e c e s s a r y 
e x p e r t i s e   a t   a ny   m o m e n t .   Ad d i t i o n a l   s u p -
p o r t   i s   p r o v i d e d   b y   E u r o p e A i d   ( i n   p a r t i c -
u l a r   i t s   Q u a l i t y   D i r e c t o r a t e )   a n d   b y   o t h e r 
deleg ation s.

43.
T h e   o v e r a l l   l e v e l   o f   v a c a n c y   r a t e s   o f   c o n -
t r a c t   a g e n t s   i n   d e l e g a t i o n s   w a s   r e d u c e d 
f ro m   1 4 , 5  %   a t   t h e   e n d   o f   D e c e m b e r   2 0 0 9 
t o   9 , 3  %   a t   t h e   e n d   o f   S e p t e m b e r   2 0 1 0 . 
D u r i n g   t h e   s a m e   p e r i o d,   t h e   v a c a n c y   r a t e 
o f   c o n t r a c t   a g e n t s   i n   d e l e g a t i o n s   w i t h 
h i g h e r   l i v i n g   c o n d i t i o n s ’  a l l o w a n c e   r a t e s 
(i.e. delegations in ‘difficult ‘ countries) was 
also reduced from 20,4  % to 14,8 %. M oreo -
ver, based on the consumption of available 
re s o u rce s,   b u d g e t a r y   f u n d s   e a r m a r k e d   fo r 
c o n t r a c t   a g e n t s   h a v e   b e e n   a l m o s t   f u l l y 
e x h a u s t e d   a t   t h e   g l o b a l   l e ve l   ( 9 6  %   s p e n t 
at t he end o f 20 09).

R e g a rd i n g   t h e   q u e s t i o n   o f   a cce s s   to   t ra i n-
ing courses by contrac t and local staff, sig -
n i f i c a n t   e f fo r t s   a r e   b e i n g   m a d e   t o   o r g a n -
i s e   t ra i n i n g   s e s s i o n s   ove r s e a s   a s   we l l   a s   to 
develop e -le ar ning  modul es.

44.
A   re f l e c t i o n   o n   h o w   t o   i m p ro ve   t h e   d e l i v-
e r y   o f   e x p e r t i s e   i s   o n g o i n g ,   g i v e n   t h e 
c o n s t r a i n t s   i n   b o t h   h u m a n   a n d   f i n a n c i a l 
r e s o u r c e s   t h a t   C o m m i s s i o n   h e a d q u a r t e r s 
a n d   d e l e g a t i o n s   f a c e .   I n d e e d ,   i t   i s   c u r -
r e n t l y   n e i t h e r   p o s s i b l e   n o r   d e s i r a b l e   t o 
h a v e   e x p e r t s   i n   a l l   d e l e g a t i o n s   g i v e n   t h e 
c h a n g i n g   e nv i r o n m e n t .   I n   a d d i t i o n ,   Co m -
mission officials should be able to conduc t 
polic y dialo g ue  w ith the b enefi c i ar y  co un -
t r y   a n d   o t h e r   d o n o r s   b a s e d   o n   t h e   p r o v i -
s i o n   o f   e x p e r t   a d v i c e   ( f r o m   o t h e r   p a r t -
ners, headquar ters and other suppor t from 
inside/ou tside t he del egat ion).

R egarding training course duration, a wide 
v a r i e t y   a n d   p r o g r e s s i o n   o f   s h o r t   c o u r s e s 
a n d   g u i d a n c e   i s   a v a i l a b l e .   A l t h o u g h 
t h i s   p r o v i s i o n   i s   n o t   d e s i g n e d   t o   c r e a t e 
e x p e r t s ,   i t   d o e s   p r o v i d e   a   s o l i d   i n t r o d u c -
t i o n   t o   c u r r e n t   c o n c e p t s   a n d   e m e r g i n g 
t h i n k i n g   i n   t h e s e   f i e l d s,   a s   we l l   a s   p rov i d-
ing space for the exchange of exper iences.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

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REPLY OF THE 
COMMISSION

5 2.
R e g a r d i n g   t h e   a i d   e f fe c t i v e n e s s   p r i n c i p l e 
a c c o r d i n g   t o   w h i c h   e a c h   d o n o r   s h o u l d 
c o n c e n t r a t e   o n   a   f e w   t h e m a t i c   s e c t o r s 
b a s e d   o n   a n   a n a l y s i s   o f   t h e   d o n o r s ‘   c o m -
p a r a t i v e   a d v a n t a g e ,   i t   s h o u l d   b e   n o t e d 
t h a t   t h i s   p r i n c i p l e   a p p l i e s   t o   d o n o r s  ‘ b y 
count r y ‘  a nd not ‘ wor ldwide ‘. 

5 3.
Please s ee reply  to R ecommen d ati on  5  (b) .

5 5.
Please s ee reply  to R ecommen d ati on  4  (c ) .

5 6.
As a complement to the projec t c ycle man-
a g e m e n t   g u i d a n c e   ( 2 0 0 4 ) ,   t h e   C o m m i s -
sion developed a comprehensive reference 
d o c u m e n t   o n   i n t e r n a l   m o n i t o r i n g   i n   2 0 0 7 
w h i c h   i n c l u d e s   g u i d a n c e   o n   t h e   p l a n n i n g 
a n d   c a r r y i n g   o u t   o f   f i e l d   v i s i t s .   Tr a i n i n g 
courses on inter nal monitor ing for delega-
tions are also provided by EuropeAid‘s and 
th e E nlargem ent  DG ‘s Q ualit y  Di re c torate.

P l e a s e   a l s o   s e e   r e p l y   t o   R e c o m m e n d a -
tion s 2 (a)  and 4 (c).

5 7.
Th e   d e vo l u t i o n   p ro ce s s   h a s   i nvo l ve d   p l a c-
i n g   e x p e r t   f i n a n c e   a n d   c o n t r a c t s   s t a f f 
i n   t h e   f i e l d   w h e r e   n o n e   w e r e   p r e v i o u s l y 
p re s e n t .  T h e   a b i l i t y   o f   t h e   Co m m i s s i o n   t o 
per for m on-the -spot monitor ing and guid-
a n c e   o f   p r o j e c t s   —   p a r t i c u l a r l y   fo r   f i n a n -
c i a l   m a n a g e m e n t   p u r p o s e s   —   h a s   a s   a 
r e s u l t   i n c r e a s e d   s u b s t a n t i a l l y.   A d d i t i o n a l 
g u i d a n c e   fo r   o n - t h e - s p o t   m i s s i o n   ( c o v e r -
i n g   f i n a n c i a l   a s p e c t s   fo r   o p e rat i o n a l   s t a f f ) 
was published in  20 09 .

48.
T h e   C o m m i s s i o n   r e c o g n i s e s   t h a t ,   i n   s p i t e 
o f   t h e   s u b s t a n t i a l   p r o g r e s s   a l r e a d y   m a d e 
t o   r e d u c e   a i d   f r a g m e n t a t i o n   a m o n g   E U 
donors through a limitation of the number 
o f   i n t e r v e n t i o n   s e c t o r s ,   t h e   p r o c e s s   o f 
d i v i s i o n   o f   l a b o u r   i s   s t i l l   s l o w   d u e   t o   i t s 
p o l i t i c a l   n a t u r e .   A   c o n s e n s u s   r e c e n t l y 
e m e r g e d   t h a t   t h e   C o m m i s s i o n   n e e d s   t o 
p l a y   a   s t r o n g e r   r o l e   i n   l e a d i n g   t h e   p r o c -
e s s   at   co u nt r y   l e ve l.  Th e   c u r re nt   at te nt i o n 
g i v e n   a t   E U   l e v e l   t o   i n c r e a s i n g   s p e c i f i c 
c o u n t r y   c a s e s   s e r v e s   t h i s   p u r p o s e .   T h e 
Co m m i s s i o n   a gre e s   t h at,   i n   t h e   l o n g   te r m , 
j o i n t   p r o g r a m m i n g   s h o u l d   p r o v i d e   t h e 
m o s t   e f f i c i e n t   c o n t e x t   f o r   i m p l e m e n t i n g 
d i v i s i o n   o f   l a b o u r   o n   a   w i d e r   s c a l e .   H o w -
ever, in the medium ter m the cur rent proc-
e s s   s h o u l d   b e   c o n t i n u e d   i n   o r d e r   t o   k e e p 
E U   d o n o r s   f o c u s e d   o n   i m m e d i a t e   a c t i o n s 
with concrete deliverables expec ted by the 
H i g h   Le v e l   Fo r u m   o n   A i d   E f fe c t i v e n e s s   t o 
be held in  S o ut h Ko rea in 2011.

51.
T h e   r i s k s   d e s c r i b e d   b y   t h e   C o u r t   t o   a 
s t r o n g   c e n t r a l   s u p p o r t   f u n c t i o n ,   i n s t i t u -
tional memor y and the efficienc y of opera-
t i o n s   re f l e c t s   t h e   c h a l l e n g e s   Eu ro p e A i d   i s 
f a c i n g   i n   t e r m s   o f   h u m a n   r e s o u r c e s   w i t h 
t h e   c o n s t r a i n t   o f   t h e   t h r e e - y e a r   n o n -
renewable  contrac ts  fo r co ntrac t  a ge nt s. 

To   m i t i g a te   t h e   l o s s   o f   i n s t i t u t i o n a l   m e m -
o r y,   a   s t r i c t   h a n d o v e r   p r o c e s s   h a s   b e e n 
implem ented. 

T h e   r e v i s e d   S t a f f   R e g u l a t i o n s ,   i n   t h e 
f r a m e w o r k   o f   t h e   c r e a t i o n   o f   t h e   E E A S , 
provide for the rotation of contrac t agents 
h av i n g   b e e n   f i r s t l y   e m p l oye d   i n   a   d e l e g a-
tion. Through this new system, they will be 
a b l e   to   s e r ve   at   Co m m i s s i o n   h e a d q u a r te r s 
and delegations without losing their r ights 
( e. g.   p o t e n t i a l l y   i n d e f i n i t e   c o n t r a c t   d u r a -
t i o n ) .  T h i s   s h o u l d   f a c i l i t a t e   b e t t e r   k n o w l -
edge management bet ween EuropeAid and 
th e EU del eg at ions.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

58.
T h e   Co m m i s s i o n   a g re e s   t h a t   t h e   m a n a g e -
m e n t   o f   t h e m a t i c   b u d g e t   l i n e s   re p re s e n t s 
a   c h a l l e n g e.   H owe ve r,   t h e   m a n a g e m e nt   o f 
thematic programmes in delegations are as 
m u c h   c o r e   r e s p o n s i b i l i t i e s   o f   t h e   d e l e g a-
t i o n s   a s   t h e   a i d   i n i t i at i ve s   a n c h o re d   i n   t h e 
countr y st rate g y p ap ers.

W i t h   r e g a r d s   t o   t h e   m a n a g e m e n t   o f 
r e g i o n a l   p r o g r a m m e s ,   t h e   C o m m i s s i o n 
a g r e e s   t h a t   a t t e n t i o n   n e e d s   t o   b e   p a i d 
t o   t h e   b e t t e r   c l a r i f i c a t i o n   o f   r o l e s   a n d 
improvement of coordination mechanisms. 
Guidance was issued to this effec t in O c to -
ber 2010. 

59.
A   m a j o r   r e f o r m   o f   d e l e g a t i o n s ‘   r e p o r t -
i n g   i s   u n d e r   w ay.  T h i s   re fo r m   i s   b a s e d   o n : 
(a) exper ience built up in using the cur rent 
EAMR since 2003; (b) a comprehensive sur-
v e y   o f   d e l e g a t i o n s   i n   2 0 0 9 ;   ( c )   a   w o r k i n g 
gro u p   w i t h i n   Eu ro p e Ai d   w h i c h   re p o r te d   i n 
t h e   f i r s t   h a l f   o f   2 0 1 0 .   T h e   n e w   E A M R   w i l l 
d raw   m u c h   m o re   o n   i n fo r m at i o n   ava i l a b l e 
i n   t h e   m a n a g e m e n t   i n f o r m a t i o n   s y s t e m 
(C R I S ) ,   a n d   w i l l   p rov i d e   fo r   a s s e s s m e nt s   o f 
projec ts by the delegation as well as finan-
cial management issues. Last but not least, 
t h e   n e w   E A M R   s h o u l d   b e   l e s s   t i m e - c o n -
s u m i n g   t o   p re p a r e,   a s   i t   w i l l   b e   a n   o n l i n e 
system .

Please see reply to Recommendations 2 (a), 
6 (b)  and (c) .

48

REPLY OF THE 
COMMISSION

6 0.
A   d a t a b a s e   f o r   p r o j e c t   e v a l u a t i o n s   a n d 
R O M   i s   u n d e r   d e v e l o p m e n t   a s   p a r t   o f   t h e 
projec t and programme c ycle management 
( P P C M )   p l a t fo r m .  Th i s   d a t a b a s e   w i l l   f a c i l i -
t ate   t h e   p l a n n i n g,   m a n a g e m e nt,   co n s u l t a -
tion   and   an alysis  of  ex te r nal  proje c t  mon i-
tor ing,  evaluation s an d th eir  results.

CONCLUSIONS	AND		
RECOMMENDATIONS

6 1.
T h e   C o m m i s s i o n   w e l c o m e s   t h e   C o u r t ‘ s 
f i n d i n g s   t h at   d e vo l u t i o n   h a s   i n c re a s e d   t h e 
s p e e d   o f   a i d   d e l i ve r y,   s t re n g t h e n e d   f i n a n-
cial  manag ement  and  th at  some  ind i c ator s 
a l s o   p o i n t   t o   i m p rove m e n t s   i n   t h e   q u a l i t y 
of aid. 

6 2.
Never theless the Commission fully accepts 
t h e   n e e d   t o   f u r t h e r   i m p r o v e   E u r o p e -
A i d ‘s   s y s t e m s,   p a r t i c u l a r l y   i n   re l a t i o n   t o   a 
c l e a re r   re s u l t s’  fo c u s   fo r   i t s   q u a l i t y   i n d i c a -
to r s   a n d   o p t i m i s at i o n   o f   i t s   re s o u rce   m a n-
a g e m e n t .   W i t h   t h i s   i n   m i n d   a   n u m b e r   o f 
r e f o r m s   a r e   u n d e r   w a y   ( i n c l u d i n g   a   c o m -
p r e h e n s i v e   r e a s s e s s m e n t   o f   p l a n n i n g , 
re p o r t i n g,   c o n t ro l,   m o n i t o r i n g   a n d   e v a l u -
ation strategies) to ensure a more focused, 
e f f i c i e nt   a n d   e f fe c t i ve   m a n a g e m e nt   o f   a i d 
deliver y.

6 3.
I n   a d d i t i o n ,   t h e   Co m m i s s i o n   h a s   t a k e n   t h e 
o p p o r t u n i t y   p r o v i d e d   b y   t h e   e s t a b l i s h -
m e n t   o f   t h e   E E A S   t o   r e v i e w   a n d   o p t i m i s e 
i t s   o r g a n i s a t i o n a l   s t r u c t u r e   f o r   t h e   d e l i v -
e r y   o f   e x t e r n a l   a i d ,   i n c l u d i n g   t h e   m e r g e r 
o f   E u r o p e A i d   w i t h   t h e   D e v e l o p m e n t   D G 
t o   f o r m   t h e   E u r o p e A i d   D e v e l o p m e n t   a n d 
Coope ration Direc torate - G en eral.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

4949

REPLY OF THE 
COMMISSION

64.
The Commission welcomes the Cour t ‘s con-
c l u s i o n   t h a t   a i d   h a s   s i gn i f i c a n t l y   s p e e d e d 
u p   u n d e r   d e v o l u t i o n ,   t h a t   i n d i c a t o r s   a r e 
r e l i a b l e   a n d   t h a t   a i d   i n t e r v e n t i o n s   a r e 
e x p e r i e n c i n g   s i g n i f i c a n t l y   f e w e r   d e l a y s 
o v e r   t i m e .   T h e   C o m m i s s i o n   c o m p r e h e n -
s i ve l y   m o n i t o r s   t h e   t i m e   t h a t   a i d   t a k e s   t o 
r e a c h   r e c i p i e n t s   a n d   t h e   i m p a c t   o f   t h i s 
a i d   o n   f i n a l   b e n e f i c i a r i e s   t h ro u g h   a   r a n g e 
o f   q u a n t i t a t i v e   i n d i c a t o r s   o n   b u d g e t a r y 
e xe c u t i o n   a n d   t h ro u g h   q u a l i t at i ve   m e a n s, 
such as monitor ing and contac ts with con-
t r a c t e d   o rg a n i s a t i o n s   i n   t h e   f i e l d   ( i n c l u d -
i n g   s t r i c t   re q u i re m e nt s   fo r   co m p re h e n s i ve 
and  regul ar pro gress rep o r ting) .

Recomme ndat ion	1
Th e   Co m m i s s i o n   co n s i d e r s   i t   i m p o r t a nt   to 
m a i nt a i n   i t s   c u r re nt   c l e a r   s e t   o f   i n d i c ato r s 
f o r   b u d g e t   e x e c u t i o n .   W i t h   r e g a r d   t o   a i d 
i m p l e m e n t a t i o n   t h e   C o m m i s s i o n   a g r e e s 
t h a t   f u r t h e r   m e a s u r e s   c o u l d   b e   t a k e n   a s 
set  ou t in it s rep l y to R eco mmen d ati on  2 .

65.
A s   r e g a r d s  ‘q u a l i t y ‘   i n d i c a t o r s ,   t h e   C o m -
m i s s i o n   s h a r e s   t h e   C o u r t ‘s   a n a l y s i s   t h a t 
—   a f t e r   t h e   s i g n i f i c a n t   e m p h a s i s   o n   s u p -
p o r t i n g   a n d   i m p r o v i n g   q u a l i t y   s i n c e   d e v -
o l u t i o n   —   m o r e   e m p h a s i s   m a y   n o w   n e e d 
t o   b e   p l a c e d   o n   ‘ m e a s u r i n g ‘   q u a l i t y .   A 
n u m b e r   o f   s t e p s   h a ve   a l re a d y   b e e n   t a k e n 
in this respec t which includes the on going 
d e v e l o p m e n t   o f   a   m o r e   r e s u l t s   f o c u s e d 
and ‘operational‘ management infor mation 
system .

Recommendatio n	2
Wi t h   t h i s   i n   m i n d,   t h e   Co m m i s s i o n   i s   c u r -
re n t l y   a n a l y s i n g   o p t i o n s   fo r   t h e   re fo r m   o f 
its  monitor ing  and evaluation  approac h.

Recommendatio n	2 	(a)	
T h e s e   i n c l u d e   t o o l s   f o r   t h e   ‘ i n t e r n a l ‘ 
a s s e s s m e n t   o f   t h e   i m p l e m e n t a t i o n   o f   a l l 
p r o j e c t s   —   i n c l u d i n g   a t   c l o s u r e   —   b y   i t s 
o p e r a t i o n a l   s t a f f   ( m a i n l y   i n   d e l e g a t i o n s ) , 
for example through a ‘ traffic light ‘ system 
to highlight the progress and effec tiveness 
of proje c ts.

Recommendatio n	2 	(b)	
A n o t h e r   t o o l   u n d e r   d i s c u s s i o n   i s   a   f i n a l 
i n d e p e n d e n t   a s s e s s m e n t   o f   p r o j e c t s   p r o -
v i d i n g   q u a l i t a t i v e   a n d   q u a n t i t a t i v e   d a t a 
w h i c h   c a n   b e   a c c e s s e d   a n d   a g g r e g a t e d 
t h r o u g h   a   m a n a g e m e n t   i n f o r m a t i o n   s y s -
t e m   a n d   w o u l d   p r o v i d e   a   r e l i a b l e   q u a l i t y 
indicator for the per for mance of the devel-
o p m e n t   a s s i s t a n c e   p o r t f o l i o   a s   a   w h o l e . 
A s   r e g a r d s   t h e   h o r i z o n t a l / s t r a t e g i c   l e v e l 
e va l u at i o n s,   q u a nt i t at i ve   a s s e s s m e nt s   a n d 
i n d i c ato r s   a re   a l re a d y   u s e d   w h e re ve r   p o s -
s i b l e.   I n   t h e   s p i r i t   o f   t h e   Pa r i s   D e c l a rat i o n 
a n d   Acc ra   Ag e n d a   fo r   Ac t i o n ,   n at i o n a l   s t a -
t i s t i c a l   s y s t e m s   a n d   j o i n t   m o n i t o r i n g   a r e 
used as a first priorit y ; however, these data 
are of te n incomplete  or  n ot fully  re liabl e. 

6 6.
R e g a r d i n g   f i n a n c i a l   m a n a g e m e n t ,   t h e 
Commission welcomes the Cour t ‘s recogni -
tion of EuropeAid‘s comprehensive control 
strateg y.

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

50

REPLY OF THE 
COMMISSION

Recommendatio n	4 	(a)	 (ii)	
N e v e r t h e l e s s   t h e r e   a r e   n e w   l i m i t s   t o   t h e 
C o m m i s s i o n ‘s   m a n d a t e   i n   E U   d e l e g a t i o n s 
i n   t h e   i n s t i t u t i o n a l   c o n t e x t   o f   t h e   L i s b o n 
Tr e a t y.   T h e   c r e a t i o n   o f   t h e   E E A S   b r i n g s   a 
clear separation bet ween the Commission‘s 
a i d   m a n a g e m e nt   t a s k s   a n d   t h e   E E A S‘s   d i p -
lomatic and other tasks. Thus, the Commis-
s i o n   i s   n o t   a b l e   t o   a c c e p t   t h e   Co u r t ‘s   re c -
o m m e n d a t i o n   o n   i m p r o v i n g   t h e  ‘ b a l a n c e ‘ 
b e t w e e n   a i d   a n d  ‘o t h e r ‘   s t a f f   i n   t h e   f i e l d , 
a s   o n l y   t h e   a i d   m a n a g e m e n t   p o r t f o l i o   o f 
t h e   d e l e g a t i o n s   r e m a i n s   u n d e r   t h e   C o m -
miss ion ‘s respons ibilit y.

Recommendatio n	4 	(a)	 (iii)	
T h e   C o m m i s s i o n   a c c e p t s ,   h o w e v e r,   t h a t 
f u r t h e r   w o r k   n e e d s   t o   b e   d o n e   t o   m a t c h 
s k i l l s   a n d   e x p e r t i s e   t o   t h e   n e e d s   i d e n t i -
f i e d   i n   d e l e g a t i o n s .   A   r e f l e c t i o n   o n   h o w 
to   i m p rove   d e l i ve r y   o f   e x p e r t i s e   w h e re ve r 
a n d   w h e n e v e r   n e e d e d   i s   o n g o i n g ,   a n d   i s 
f o c u s e d   o n   d e v e l o p i n g   t o o l s   t o   i d e n t i f y 
r e q u i r e d   a n d   a v a i l a b l e   e x p e r t i s e ,   a n d   o n 
prac tical ways of  d eliver ing  it.

Recommendatio n	4 	(b)	
T h e   c o n c e p t   o f  ‘d i v i s i o n   o f   l a b o u r ‘   —   i . e . 
r e d u c i n g   t h e   n u m b e r   o f   s e c t o r s   o f   i n t e r -
ve nt i o n   at   co u nt r y   l e ve l   fo r   e a c h   E U   d o n o r 
—   i s   a n   i m p o r t a nt   co nt r i b u t i o n   to    m a k i n g 
a i d   d e l i ve r y   m o re   e f fe c t i ve   a n d   m o re   e f f i-
c i e nt   fo r   a l l   s t a k e h o l d e r s.  Th e   Co m m i s s i o n 
r e c o g n i s e s   t h a t   ( i n   s p i t e   o f   t h e   s u b s t a n -
t i a l   p ro g re s s   a l re a d y   m a d e )   t h e   p ro c e s s   i s 
s t i l l   t o o   s l o w,   a c c e p t s   t h a t   i t   s h o u l d   p l a y 
a   s t r o n g e r   r o l e   i n   l e a d i n g   t h e   p r o c e s s   a t 
c o u n t r y   l e v e l ,   a n d   t h a t   j o i n t   p r o g r a m -
ming with EU M ember States should be the 
longer ter m goal. The H igh Level Forum on 
Aid Effec tiveness to be held in S outh Korea 
i n   2 0 1 1   s h o u l d   p rov i d e   co n c re te   e v i d e n ce 
of th ese fur ther  effor ts.

Recomme ndat ion	3
N e v e r t h e l e s s ,   t h e   i m p r o v e m e n t   o f   t h e 
C o m m i s s i o n ‘s   f i n a n c i a l   m a n a g e m e n t   f o r 
e x t e r n a l   a i d   c o n t i n u e s   t o   b e   a   c l e a r   p r i -
o r i t y .   T h e   C o m m i s s i o n   i s   e n g a g e d   i n   a 
c o m p r e h e n s i v e   r e v i e w   o f   t h e   p l a n n i n g , 
m o n i t o r i n g   a n d   re p o r t i n g   p ro c e s s   fo r   t h e 
e x t e r n a l   a i d   p o r t f o l i o ,   w i t h   a   p a r t i c u l a r 
e m p h a s i s   o n   i t s   f i n a n c i a l   m a n a g e m e n t .   I n 
a d d i t i o n   i t   h a s   e n g a g e d   i n   a   s u b s t a n t i a l 
a n a l y s i s   o n   t h e   c o s t / b e n e f i t   o f   i t s   c o n t ro l 
strategy.

67.
A n o t h e r   a s p e c t   o f   i m p r o v i n g   t h e   o p t i m i -
s a t i o n   o f   re s o u rce s   co n ce r n s   t h e   m a n a g e -
ment  of st affing in EU del e gat io ns. 

T h e   C o m m i s s i o n   h a s   m a d e   s i g n i f i c a n t 
e f f o r t s   i n   2 0 0 9   a n d   2 0 1 0   t o   m i t i g a t e   t h e 
r i s k s   p o s e d   b y   t h e   h i g h   v a c a n c y   r a t e   f o r 
c o n t r a c t   a g e n t s   i n   d e l e g a t i o n s   i n c l u d -
i n g   t h e   s i m p l i f i c a t i o n   o f   re c r u i t m e n t   p ro -
c e d u r e s   a n d   t h e   r e c e n t   p r o p o s a l s   ( i n   t h e 
re v i s i o n   o f   t h e   St a f f   R e g u l at i o n s )   to   i nt ro -
d u c e   t h e   c o n c e p t   o f  ‘ro t a t i o n ‘   o f   c o n t r a c t 
a g e n t s   i n   d e l e g a t i o n s   ( o n   u n l i m i te d   d u ra -
tion contrac t s). 

Recomme ndat ion	4	(a )	(i)	
A n o t h e r   k e y   t o o l   i n   t h e   m a n a g e m e n t   o f 
s t a f f   r e s o u r c e s   i n   d e l e g a t i o n s   i s   r e g u l a r 
w o r k l o a d   a s s e s s m e n t .   T h e   C o m m i s s i o n   i s 
c u r r e n t l y   r e f i n i n g   i t s   m e t h o d o l o g y   a n d 
w i l l   l a u n c h   a   wo r k l o a d   a n a l ys i s   o f   d e l e g a -
t i o n s   i n   2 0 1 1   to   p rov i d e   a   b e t te r   b a s i s   fo r 
m a t c h i n g   s t a f f   r e s o u r c e s   t o   t h e   d e l e g a -
t i o n s ‘   r e s p e c t i v e   p o r t f o l i o s   a n d   d e v e l o p -
ment  real ities. 

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

5151

REPLY OF THE 
COMMISSION

 Ū t h e   e m p l o y m e n t   o f   c o n t r a c t   a g e n t s 
having already been employed in a del-
e g at i o n ;   t h ro u g h   t h i s   n e w   s ys te m ,   d e l-
eg ation   cont rac t  agents   will  be  able   to 
ser ve in HQ an d in  delegat ions  wi th out 
l o s i n g   t h e i r   r i g h t s   t o   a   p o t e n t i a l l y   i n -
defin ite cont ra c t ;

 Ū c o nve r t i n g   a   l i m i te d   n u m b e r   o f   ( f i xe d - 
c o n t r a c t )   c o n t r a c t   a g e n t   p o s t s   i n t o 
 e s t a b l i s h m e n t   p l a n   p o s t s   f o r   o f f i c i a l s 
in  EuropeAid.

Recommendatio n	5 	(b)
I n   a d d i t i o n   t h e   C o m m i s s i o n   a c c e p t s   t h a t 
m o r e   c a n   b e   d o n e   t o   e x p a n d   t h e   r a n g e 
o f   g u i d a n c e   o f f e r e d   t o   d e l e g a t i o n s .   T h e 
i m p l e m e nt at i o n   o f   t h e   Co u r t ‘s   re co m m e n-
d a t i o n   o n   f u r t h e r   g u i d a n c e   h a s   a l r e a d y 
s t a r t e d ,   a n d   t h e   n e w   p r o j e c t   a n d   p r o -
g r a m m e   c y c l e   m a n a g e m e n t   r e f e r e n c e 
d o c u m e nt   d u e   fo r   co m p l e t i o n   i n   2 0 1 1   w i l l 
in clude a chapter on polic y d ialog ue.

Recommendatio n	6
A   r e s u l t s   a n d   r e s o u r c e   m a n a g e m e n t 
fo c u s e d   p l a n n i n g,   m o n i to r i n g   a n d   re p o r t -
i n g   s y s t e m   i s   a t   t h e   h e a r t   o f   a n   e f f i c i e n t , 
e f f e c t i v e   a n d   f u l l y   a c c o u n t a b l e   d e v o l v e d 
m a n a g e m e n t   s t r u c t u r e .  Wi t h   t h i s   i n   m i n d 
t h e   C o m m i s s i o n   h a s   r e c e n t l y   l a u n c h e d   a 
f u l l   r e v i e w   o f   p l a n n i n g ,   m o n i t o r i n g   a n d 
repor t ing tools in  EuropeAid.

Recomme ndat ion	4	(c)	
N e v e r t h e l e s s   t h e   C o m m i s s i o n   h a s   m a d e 
c o n s i d e r a b l e   p r o g r e s s   i n   t h i s   f i e l d   a n d 
w i l l   co n t i n u e   i t s   e f fo r t s   to   d e l e g a te   i n te r-
v e n t i o n s   i n   ‘ n o n - f o c a l ‘   s e c t o r s   t o   o t h e r 
E U   M e m b e r   S t a t e s   w h o   a re   l e a d i n g   d o n o r 
c o o r d i n a t i o n   i n   t h a t   s e c t o r   i n   a   p a r t n e r 
countr y.

68.
At   h e a d q u a r te r s   t h e   h u m a n   re s o u rce   co n -
s t r a i n t s   a r e   o f   a   d i f f e r e n t   n a t u r e   t o   t h e 
challenges encountered in delegations but 
c a n   h a v e   a   s i g n i f i c a n t   e f f e c t   o n   t h e   s u p -
por t which Brussels is able to offer. For HQ 
th e Commissio n‘s co mmitment to  s e r ve E U 
p r i o r i t i e s   u p   t o   2 0 1 3   u n d e r   c u r r e n t   s t a f f -
i n g   ( t h e  ‘ z e r o   g r o w t h ‘   c o m m i t m e n t   m a d e 
i n   t h e   2 0 0 7   S c re e n i n g   R e p o r t )   m e a n s   t h a t 
Eu ro p e Ai d ‘s   e s t a b l i s h m e nt   p l a n   p o s t s   c a n -
n o t   b e   i n c re a s e d,   a n d   t h e   b u d g e t   fo r   n o n - 
per manent staff financed from operational 
p r o g r a m m e s   i s   f r o z e n .   T h e   C o u r t   u n d e r -
l i n e s   i n   p a r t i c u l a r   t h e   c h a l l e n g e s   E u ro p e -
Aid is cu r re nt ly fac ing in ter ms  o f  t he  h igh 
p ro p o r t i o n   o f   i t s   s t a f f   o n   t h re e - ye a r   n o n -
renewable  contrac ts. 

Recomme ndat ion	5	(a )	
T h e   C o m m i s s i o n   i s   c u r r e n t l y   p l a n n i n g   t o 
i m p r o v e   t h e   s t a f f   t u r n o v e r   s i t u a t i o n   b y 
i n c re a s i n g   t h e   rat i o   o f   e s t a b l i s h m e nt   p l a n 
p o s t s   t o   c o n t r a c t   a g e n t s   o n   f i x e d - t e r m 
c o n t r a c t s   t h r o u g h   t h e   f o l l o w i n g   m e c h a -
nisms:

 Ū o p t i m i s i n g   c u r r e n t   r e s o u r c e s   t h r o u g h 
t h e   m e rg e r   o f   t h e   p a r t   o f   t h e   D e ve l o p -
m e n t   D G   w h i c h   w i l l   n o t   b e   t r a n s fe r re d 
to th e E EAS wit h Eu ropeAid;

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

52

REPLY OF THE 
COMMISSION

Recomme ndat ion	6	(a )	
T h i s   p r o c e s s   i n c l u d e s   t h e   r e v i s i o n   o f 
Europe Aid‘s 2007 inter nal projec t monitor-
i n g   g u i d a n ce   ( i n c l u d i n g   b u t   n o t   l i m i te d   to 
o n - t h e - s p o t   v i s i t s )   a n d   t h e   i n t e g r a t i o n   o f 
i t   i n t o   n e w   p r o j e c t   a n d   p r o g r a m m e   c y c l e 
m a n a g e m e n t   g u i d a n c e .   D e l e g a t i o n s   w i l l 
b e   r e q u i r e d   t o   e s t a b l i s h   a   m u l t i a n n u a l 
p r o j e c t s ‘   p o r t fo l i o   m a n a g e m e n t   p l a n   a n d 
o v e r v i e w   a d a p t e d   t o   t h e i r   s p e c i f i c   c o n -
t e x t   a n d   n e e d s ,   a n d   a n   I T- b a s e d   p r o j e c t 
 m a n a g e m e n t   m o d u l e   w i l l   b e   d e v e l o p e d 
to   f u r t h e r   s u p p o r t   p ro j e c t   m o n i to r i n g   a n d 
mana gement. 

I m p o r t a nt l y,   d e l e g at i o n s   w i l l   i n   t h e   f u t u re 
a l s o   b e   re q u i re d   t o   re p o r t   o n   t h e   n u m b e r 
a n d   n a t u r e   o f   o n - t h e - s p o t   m o n i t o r i n g 
v i s i t s   i n   t h e i r   r e g u l a r   e x t e r n a l   a s s i s t a n c e 
mana gement rep o r ts.

Recomme ndat ion	6	(b)	
T h e   C o m m i s s i o n   a l s o   s h a r e s   t h e   C o u r t ‘s 
v i e w   t h a t   E u r o p e A i d   n e e d s   a   s t r o n g e r 
‘r e s u l t s ‘   fo c u s ,   a n d   w i l l   r e o r i e n t   i t s   i n t e r-
nal repor ting (ex ter nal assistance manage -
m e n t   r e p o r t s )   t o w a r d s   k e y   p e r f o r m a n c e 
d a t a ,   i n c l u d i n g   b e t t e r   i n fo r m a t i o n   o n   t h e 
results of p roj ec t s.

Recomme ndat ion	6	(c)	
Fi n a l l y,   t h e   C o m m i s s i o n   i s   t a k i n g   a l l   t h e 
n e c e s s a r y   m e a s u r e s   t o   e n s u r e   a   s m o o t h 
t r a n s i t i o n   t o   t h e   n e w   i n s t i t u t i o n a l   c o n -
t e x t   fo r   d e l e g a t i o n s,   p a r t i c u l a r l y   i n   t e r m s 
o f   s o u n d   f i n a n c i a l   m a n a g e m e n t .  Wi t h   t h i s 
i n   m i n d ,   t h e   C o m m i s s i o n   w i l l   i m p l e m e n t 
p ro p o s e d   n e w   l e g a l   p rov i s i o n s   fo r   h o l d i n g 
h e a d s   o f   d e l e g a t i o n s   a c c o u n t a b l e   a s   s u b -
delegated author ising officers by requir ing 
them to provide a ‘statement of assurance‘ 
t o   a c c o m p a n y   t h e i r   r e g u l a r   r e p o r t i n g   t o 
th e Commis sion .

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

Special Report No 1/2011 – Has the devolution of the Commission's management of external assistance from its headquarters to its delegations led to improved aid delivery?

European Court of Auditors

Special	Report	No	1/2011

Has	the	devolution	of	the	Commission‘s	management	of	external	assistance	from	its	headquarters	to	its	

delegations	led	to	improved	aid	delivery?	

Luxembourg: Publications Office of the European Union

2011 — 52 pp. — 21 × 29.7 cm

ISBN 978-92-9237-050-3

doi:10.2865/16300

How	to	obtain	EU	publications

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Q
J
-
A
B
-
1
0
-
0
1
5
-
E
N

-
C

'THE COURT CONCLUDES THAT THE DEVOLUTION OF THE COMMISSION‘S 

MANAGEMENT OF EXTERNAL ASSISTANCE FROM ITS HEADQUARTERS TO ITS 

DELEGATIONS HAS CONTRIBUTED TO AN IMPROVEMENT IN AID DELIVERY. 

AT THE SAME TIME THE COURT IDENTIFIES A NUMBER OF AREAS WHERE THE 

COMMISSION HAS NOT ACHIEVED THE FULL BENEFITS OF DEVOLUTION'. 

EUROPEAN COURT OF AUDITORS