Special Report No 3/2011 ‘The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries’
Date: 2011-05-27
Institutions: European Court of Auditors
Subjects: Member States' contribution, UNO, settlement of disputes

EUROPEAN
COURT OF AUDITORS

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THE EFFICIENCY AND EFFECTIVENESS  
OF EU CONTRIBUTIONS CHANNELLED 
THROUGH UNITED NATIONS ORGANISATIONS 
IN CONFLICT-AFFECTED COUNTRIES

EN

 
 
 
 
 
Special Report No 3 

 2011

THE EFFICIENCY AND 
EFFECTIVENESS OF 
EU CONTRIBUTIONS 
CHANNELLED THROUGH
UNITED NATIONS 
ORGANISATIONS IN 
CONFLICT-AFFECTED 
COUNTRIES

(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 3 

 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 978-92-9237-072-5

doi:10.2865/41651

© European Union, 2011

Reproduction is authorised provided the source is acknowledged.

Printed in Luxembourg

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

CONTENTS

3

Paragraph

ABBREVIATIONS	AND	GLOSSARY

I–V	

EXECUTIVE	SUMMARY

1–6	

1–3	

4–6	

INTRODUCTION

AUDIT	AREA

POLICY	FRAMEWORK

7–16	

AUDIT	SCOPE	AND	APPROACH

17–45	

OBSERVATIONS

17–24	

	MONITORING	SYSTEMS	AND	PROJECT	DESIGN	AS	KEY	FACTORS	FOR	EFFECTIVENESS	
AND	EFFICIENCY

19–22 

 THE MONITORING OF PROJECTS NEEDS IMPROVEMENT

23–24 

WEAKNESSES IN PROJECT DESIGN IMPAIR EFFECTIVENESS, EFFICIENCY AND THEIR ASSESSMENT

25–37	

EFFECTIVENESS	AND	SUSTAINABILITY	OF	THE	ACTIVITIES	FUNDED

25–29 

 THE COMMISSION-FUNDED ACTIVITIES ACHIEVED SOME GOOD RESULTS IN DIFFICULT CIRCUMSTANCES

30–33 

RESULTS ARE OFTEN NOT ACHIEVED WITHIN THE PLANNED IMPLEMENTATION PERIOD

34–37 

MOST RESULTS ARE LIKELY TO BE SUSTAINED

38–45	

EFFICIENCY	OF	THE	ACTIVITIES	FUNDED

41–43 

INADEQUATE ASSESSMENT OF PROJECT COSTS 

44–45 

SHORTCOMINGS HAVE BEEN IDENTIFIED IN THE SAMPLED PROJECTS

46–52	

CONCLUSIONS	AND	RECOMMENDATIONS

48	

	PROJECT	DESIGN

49–50	

EFFECTIVENESS	AND	SUSTAINABILITY

51–52	

EFFICIENCY

ANNEX

REPLY	OF	THE	COMMISSION

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

	
	
Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

ABBREVIATIONS AND GLOSSARY

5

EC: European Commission

EU: European Union

EuropeAid: Cooperation Office of the European Commission

FAFA: Financial and Administrative Framework Agreement between the European Commission and the 
United Nations

SMART: Specific, measurable, attainable, realistic and time-based

TFEU: Treaty on the Functioning of the European Union

UN: United Nations

UNDP: United Nations Development Programme

UNRWA: United Nations Relief and Works Agency for Palestine Refugees in the Near East

Effectiveness: Attaining the specific objectives set and achieving the intended results

Efficiency: The best relationship between resources employed and results achieved

Sustainability: Results are maintained after the EU funding has ended

Input: Resources needed to carry out an activity e.g. implementing a project

Output: The products, capital goods and services which result from a development intervention; may 
also include changes resulting from the intervention which are relevant to the achievement of outcomes

Outcome: The longer-term impact usually expressed in terms of broad socioeconomic consequences

Direct	costs: Costs directly attributable to an activity

Indirect	costs: Costs which are not directly attributable to an activity, like overheads

Trust	fund: Funding instruments through which donors pool resources

Joint	management: The implementation of activities through international organisations

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

I.
Th e   Eu ro p e a n   Co m m i s s i o n   h a s   i n te n s i f i e d 
i t s   c o o p e r a t i o n   w i t h   t h e   U n i t e d   N a t i o n s 
a s   p a r t   o f   i t s   c o m m i t m e n t   t o   t h e   b e t t e r 
c o o r d   i n a t i o n   o f   a i d .   T h e   a m o u n t   o f   E u r o -
p e A i d   f u n d s   c h a n n e l l e d   t h r o u g h   U n i t e d 
N at i o n s   O rg a n i s at i o n s   i n c re a s e d   f ro m   1 4 4 
m i l l i o n   e u ro   i n   2 0 0 1   to   9 3 5   m i l l i o n   e u ro   i n 
2 0 0 9 ,   r e a c h i n g   a   p e a k   o f   o v e r   1   b i l l i o n   i n 
2006.

II.
T h i s   i s   t h e   s e c o n d   p h a s e   o f   a   t w o - p a r t 
a u d i t .   T h e   o v e r a l l   a u d i t   q u e s t i o n   w a s 
w h e t h e r   t h e   C o m m i s s i o n   a c h i e v e s   v a l u e 
f o r   m o n e y   w h e n   c h a n n e l l i n g   f u n d s 
t h r o u g h   t h e   U n i t e d   N a t i o n s .   P a r t   o n e 
looked at decision-mak ing and monitoring. 
I t   co n c l u d e d   t h at   t h e   p ro ce s s   fo r   d e c i d i n g 
t o   i m p l e m e n t   a i d   t h ro u g h   t h e   U N   d i d   n o t 
demonstrate that that is the most effec tive 
a n d   e f f i c i e nt   o p t i o n   a n d   t h at   t h e   m o n i to r-
i n g   s y s t e m s   s h o u l d   b e   f u r t h e r   i m p r o v e d . 
Special R epor t No 15/2009 for phase 1 was 
published in  J an uar y 2010. 

III.
T h e   s e c o n d   p h a s e   e v a l u a t e s   t h e   a c h i e v e -
m e n t   o f   o b j e c t i v e s .   I t   c o m p l e m e n t s   t h e 
f i r s t   p h a s e   b y   a s s e s s i n g   w h e t h e r   E U   c o n -
t r i b u t i o n s   c h a n n e l l e d   t h r o u g h   U n i t e d 
N a t i o n s   o r g a n i s a t i o n s   a r e   a n   e f f e c t i v e , 
e f f i c i e n t   a n d   s u s t a i n a b l e   w a y   o f   d e l i v e r -
i n g   a i d   i n   c o n f l i c t - a f fe c t e d   c o u n t r i e s.  T h e 
a u d i t   e x a m i n e d   a   s a m p l e   o f   p r o j e c t s   i n 
A fg h a n i s t a n ,   I r a q   a n d   S u d a n   c o ve r i n g   t h e 
per iod 2006–08 .

6

EXECUTIVE  
SUMMARY

IV.
The  Cour t con cludes th at: 

( a)  T h e   a u d i t   o f   a   s a m p l e   o f   p r o j e c t s   c o n -
f i r m e d   a   k e y   o b s e r v a t i o n   o f   p h a s e   1 , 
t h a t   t h e   C o m m i s s i o n   d o e s   n o t   r e c e i v e 
s u f f i c i e n t   t i m e l y   i n f o r m a t i o n   f r o m   U N 
r e p o r t s .   A   l a r g e   p r o p o r t i o n   o f   r e p o r t s 
a r e   s t i l l   d e l a y e d ,   n o t   d e t a i l e d   e n o u g h 
a n d   fo c u s   o n   a c t i v i t i e s   r a t h e r   t h a n   r e -
sults. 

( b)  Fre q u e nt   we a k n e s s e s   i n   p ro j e c t   d e s i gn 
we re   n o te d   w h i c h   h a d   n e g a t i ve   co n s e -
quences for the implementation and as-
ses sment of proj ec ts.

( c)   B y   c h a n n e l l i n g   f u n d s   t h r o u g h   t h e   U N 
t h e   C o m m i s s i o n   h a s   d e l i v e r e d   a i d   i n  
areas which would other wise have been 
ve r y   d i f f i c u l t   t o   t a rg e t .   G i ve n   t h e   h i g h 
i n h e re nt   r i s k   i n   co n f l i c t- a f fe c te d   co u n -
tr ies, the ac tivities funded had an over-
a l l   p o s i t i v e   i m p a c t ,   w i t h   1 0   o u t   o f   1 9 
p ro j e c t s   i n   t h e   s a m p l e   a c h i e v i n g   a l l   o r 
at  le ast t he main  obj ec tive s. 

( d)  For   th e  major it y   of  inte r ve nt ions   i n  Af -
g h a n i s t a n ,   I ra q   a n d   S u d a n   t h e   p l a n n e d 
i m p l e m e n t a t i o n   p e r i o d   w a s   e xc e e d e d , 
i n   g e n e r a l   d u e   t o   t h e   u n re a l i s t i c   t i m e -
frame set out in the contribution agree -
ments,  wh ich  un derestimate d  t he   d i ffi-
c u l t   s i t u a t i o n   i n   t h e s e   c o u n t r i e s .   Fo u r 
o u t   o f   1 9   p r o j e c t s   w e r e   i m p l e m e n t e d 
within the initial timeframe, and for sev-
e r a l   p ro j e c t s   t h e   o r i g i n a l   d u r a t i o n   w a s 
more t han  doubled. 

( e)  Given  t he  ch allen gin g circums tan ces  in 
w h i c h   t h e   p ro j e c t s   we re   i m p l e m e n t e d, 
s u s t a i n a b i l i t y   o f   r e s u l t s   i s   i n   g e n e r a l 
d i f f i c u l t   t o   g u a r a n t e e .   H o w e v e r,   t h e   
majority of the results achieved were as-
sessed as having reasonable chances of 
susta in abilit y.

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

77

EXECUTIVE 
SUMMARY

( b)  T h e   r e p o r t i n g   o f   t h e   f u n d e d   a c t i v i t i e s 
s h o u l d   b e   f u r t h e r   i m p r o v e d   i n   o r d e r 
t o   e n a b l e   t h e   C o m m i s s i o n   t o   a s s e s s 
t h e   e f fe c t i ve n e s s   a n d   e f f i c i e n c y   o f   t h e 
p r o j e c t s   f i n a n c e d   o n   a   t i m e l y   b a s i s . 
T h e   C o m m i s s i o n   s h o u l d   f o l l o w   u p   a l l 
i n s t a n ce s   w h e re   re p o r t i n g   i s   j u d g e d   to 
be uns atisfac tor y.

( c)   A   s y s t e m a t i c   a s s e s s m e n t   o f   t h e   e f f i -
c i e n c y   o f   f u n d e d   p r o j e c t s   s h o u l d   b e 
c a r r i e d   o u t   a n d   b e n c h m a r k s   s h o u l d   b e 
developed for standard costs where fea-
sible. 

(f )   The Commission has not sufficiently fo -
c u s e d   o n   e f f i c i e n c y   a s p e c t s   g i ve n   t h a t 
t h e   c o s t   a s s e s s m e n t s   c a r r i e d   o u t   w e r e 
l i m i t e d   a n d   n o t   s y s t e m a t i c a l l y   d o c u -
m e n t e d .   I n   a d d i t i o n ,   t h e   C o u r t   i d e n t i -
fied shor tcomings in this area in almost 
h a l f   ( n i n e   o u t   o f   1 9 )   o f   t h e   s a m p l e d 
p ro j e c t s   w h i l e   fo r   s e ve n   p ro j e c t s   s u f f i -
cient  info r mat ion  was not  availa ble. 

V.
O n   t h e   b a s i s   o f   i t s   o b s e r vat i o n s,   t h e   Co u r t 
m a k e s   t h e   fo l l o w i n g   re c o m m e n d a t i o n s   t o 
fur ther improve the effec tiveness and effi-
cien c y of  the  inter vent io ns :

(a)  The contribution agreements should in-
clude objec tives which are well adapted 
t o   t h e   s p e c i f i c   c i r c u m s t a n c e s ,   q u a n t i -
fied in dicato rs to meas ure the ac h i eve -
m e nt   o f   t h e s e   o b j e c t i ve s,   w h e re   p o s s i -
ble,  and a real istic  timeframe.

M A P 	 S H O W I N G 	T H E 	 CO U N T R I E S 	 CO V E R E D 	 BY 	T H I S 	 AU D I T

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Source: Eurostat.

INTRODUCTION

8

1.	

2.	

3.	

AU D I T 	 A R E A

O ve r   t h e   l a s t   t wo   d e c a d e s   e f fo r t s   h ave   b e e n   m a d e   to   co o rd -
i n a t e   a n d   h a r m o n i s e   d e ve l o p m e n t   c o o p e r a t i o n   w i t h   t h e   o b -
j e c t i ve   o f   f u r t h e r   i n c re a s i n g   a i d   e f fe c t i ve n e s s.  T h i s   fo c u s   o n 
r e s u l t s   w a s   m o s t   n o t a b l y   r e f l e c t e d   i n   t h e   2 0 0 0   m i l l e n n i u m 
deve lo p ment g oal s.

T h e   C o m m i s s i o n   c o n t i n u e d   t h i s   p o l i c y   w i t h   i t s   c o m m i t m e n t 
i n   2 0 0 5   i n   t h e   Pa r i s   D e c l a r a t i o n   o n   A i d   E f fe c t i ve n e s s   a s   we l l 
as  in t he Eu ro pean  Consen sus on  D e ve lopm ent  to coordi nate 
aid  in cl ose  coo p eratio n w ith  inter n ati on al org an is ati ons  li k e 
the  United Natio ns.

A s   a   re s u l t   o f   t h e   d e c i s i o n   t o   i n t e n s i f y   c o o p e r a t i o n   w i t h   t h e 
UN,   b ut   al so   due  to  t he  maj or   cr i se s  i n   Afg ha ni st an ,  I raq   an d 
S u d a n ,   C o m m i s s i o n   a i d   i m p l e m e n t e d   t h r o u g h   U N   o r g a n i s a -
tions increased considerably. For the Commission’s EuropeAid 
C o o p e r a t i o n   O f f i c e   ( E u r o p e A i d )   a l o n e   t h e   f u n d s   c h a n n e l l e d 
through the UN rose from 144 million euro in 2001 to 935 mil-
lion euro in 2009, reaching a peak of over 1 billion euro in 2006 
(see  Figu r e  1).

F I G U R E 	 1	

E U R O P E A I D 	 CO N T R I B U T I O N S 	TO 	 U N 	 O R G A N I S AT I O N S 	2001 – 09	 	
( M I L L I O N 	 E U R O )

1 200

1 000

800

600

400

200

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

Source: European Commission. 

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

P O L I C Y 	 F R A M E W O R K

4.	

The method of implementing the EU budget through inter na-
t i o n a l   o rg a n i s at i o n s   l i k e   t h e   U N   i s   c a l l e d   j o i n t   m a n a g e m e n t 1. 
The basic principle of joint management is to delegate cer tain 
implementation tasks to international organisations by relying 
o n   t h e i r   co nt ro l   s ys te m s.   H owe ve r,   t h e   ove ra l l   re s p o n s i b i l i t y 
for t he manag em ent  of t he budge t an d for  en s ur in g  value  for 
mo ney  remains  w it h the Commis s ion 2. 

5.	

EU funds channelled through United Nations organisations can 
be  imp le mented in t he fol l owin g  ways : 

(a )  contr ibutions to specific projec ts either as the only donor 

o r to ge t he r wit h o ther donors; 

(b)  contributions to Multi-Donor Trust Funds 3, typically used in 
crisis (either post- conflic t or post- disaster) situations. The 
b a s i c   i d e a   o f   t r u s t   f u n d s   i s   t h at   d o n o r s   co n t r i b u te   to   t h e 
fund without allocating the money to specific ac tivities or 
o b j e c t i ve s   ( n o  ‘e a r m a r k i n g’ ) .   G e n e r a l   o b j e c t i ve s   a re   t h e n 
se t fo r th e fun d as  a who le,  wh ic h mig ht be f ur th er  s pec i-
fied in objec tives for the under lying projec ts or ac tivities. 
A b o u t   2 6   %   o f   t h e   c o n t r i b u t i o n s   t o   U N   o rg a n i s a t i o n s   a re 
t h r o u g h   M u l t i - D o n o r   Tr u s t   Fu n d s 4.   E x a m p l e s   a r e   t h e   i n -
t e r v e n t i o n s   i n   A fg h a n i s t a n   a n d   i n   p a r t i c u l a r   I r a q ,   w h e r e 
Commission funding has, until recently, almost exclusively 
b een  channel l ed th rou gh  M ulti-D on or  Tr us t  Fund s ;

(c)  contr ibutions to the general budget of a UN organisation. 
This specific approach is used for the United Nations Relief 
and  Wo r k s Ag enc y for Palestin e R efu ge e s i n th e  N ea r  E as t 
( U N R WA )   i n   t h e   o c c u p i e d   Pa l e s t i n i a n   t e r r i t o r y.  T h e   Co m -
mission’s annual contribution of 66 million euro represents 
ab o ut  a qu ar ter of th e UNR WA ge ne ral  bud g et.

9

1  Council Regulation 
(EC, Euratom) No 1605/2002  

of 25 June 2002 on the Financial 

Regulation applicable to  

the general budget of the 

European Communities  

(OJ L 248, 16.9.2002, p. 1). 

Article 163 of Title IV relating 

to external actions states that 

actions may be implemented 

either on a centralised basis 

by the Commission or on a 

decentralised basis by the 

beneficiary third country 

or countries, or jointly with 

international organisations.

2  Article 317 TFEU states 
that the Commission shall 

implement the budget on its 

own responsibility and having 

regard to the principles of sound 

financial management. 

3  Multi-Donor Trust Funds as 
defined by UNDP are  ‘a funding 

instrument through which 

donors pool resources to 

support national priorities and 

facilitate UN agencies to work 

and deliver in close coordination 

and collaboration’ (see http://

www.undp.org/mdtf/trustfunds.

shtml).

4  European Commission: 
Information Note for the 

Committee on Budgetary 

Control of the European 

Parliament on Multi-Donor 

Trust Funds supported by the 

European Community General 

Budget since 2003 (10.2.2009).

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

10

6.	

T h e   E U   c o n t r i b u t i o n s   a re   g o ve r n e d   b y   t h e   fo l l o w i n g   re g u l a -
tio ns a nd agreements: 

(a )  the Financial Regulation of the European Communities sets 
o ut  the  b asic p r inc ip l es for  c h an ne llin g f un d s t hro ug h  in -
t e r n a t i o n a l   o rg a n i s a t i o n s.   I t   s p e c i f i e s   t h e   c a s e s   i n   w h i c h 
j o i n t   m a n a g e m e n t   c a n   b e   u s e d   a n d   s t a te s   a s   a   c o n d i t i o n 
for  jo int   ma nagement  that   th e  i nter n ati on a l  org ani s ation 
shall apply internationally accepted standards for account-
ing,  au diting,  inter nal  co nt rol a nd  procure ment;

(b)  t h e   2 0 0 3 	 Fi n a n c i a l   a n d   Ad m i n i s t ra t i ve   Fr a m e wo r k   Agre e -
ment (FAFA) bet ween the EU and the UN together with the 
o t h e r   r e l a t e d   a g r e e m e n t s ,   a i m   t o   t r a n s l a t e   t h e   r e q u i r e -
me nt s  o f  t he  Fin anc ial   R egulat ion   into   contrac t ual   ter ms. 
Th e   FA FA   a p p l i e s   to   a l l   f u n d i n g   a gre e m e n t s   b e t we e n   t h e 
Commission and the UN and sets out a framework intended 
t o   e n h a n c e   c o o p e r a t i o n   by   a l l ow i n g   U N   o rg a n i s a t i o n s   to 
m a n a g e   co n t r i b u t i o n s   i n   a c c o rd a n c e   w i t h   t h e i r   ow n   p ro -
ced ures ; 

(c)  a   c o n t r i b u t i o n   a g r e e m e n t   i s   s i g n e d   f o r   e a c h   U N   a c t i o n 
funded by the Commission, stating the amount of funding, 
t h e   o b j e c t i v e s   o f   t h e   a c t i o n ,   t h e   a c t i v i t i e s   t o   b e   c a r r i e d 
o ut,  t heir timing  and the  repor ti ng  re qui re ments.

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

AUDIT SCOPE AND APPROACH

11

The subject of this audit is Commission aid channelled through 
United Nations organisations. I t is the second par t of an audit 
divide d into  t wo  p has es 5.

5  The first phase has been 
completed with the Special 

Report published in January 

2010 (European Court of 

Auditors, Special Report 

No 15/2009  ‘EU assistance 

The overall audit question for phase 1 and phase 2 was  whether 
t h e   Co m m i s s i o n   a c h i e ve s   va l u e   fo r   m o n e y   w h e n   c h a n n e l l i n g 
fun ds t hro ug h t he Un ited Nations. 

implemented through United 

Nations organisations: decision-

making and monitoring’). 

6  The Financial Regulation 
states in Article 27 that  ‘Budget 

appropriations should be used 

in accordance with the principle 

of sound financial management, 

namely in accordance with the 

principles of economy, efficiency 

and effectiveness.’.

T h e   f i r s t   p h a s e   a d d r e s s e d   d e c i s i o n - m a k i n g   a n d   m o n i t o r i n g 
syste ms.  The m ain findings were: 

(a )  the process for deciding to implement aid through the UN 
d i d   n o t   d e m o n s t r a t e   t h a t   t h a t   i s   t h e   m o s t   e f f i c i e n t   a n d 
ef fec tive o p tio n;

(b)  monitor ing ar rangements did not provide adequate infor -
m at i o n   o n   t h e   ro b u s t n e s s   o f   f i n a n c i a l   p ro ce d u re s   a n d   o n 
t he ac hieveme nt o f ob jec tive s.

The second phase evaluates the achievement of objec tives. I t 
com pl em ent s  the first  p hase by a ss es si n g w he th e r  E U cont r i-
butions channelled through United Nations organisations are 
a n   e f fe c t i v e,   e f f i c i e n t   a n d   s u s t a i n a b l e   w a y   o f   d e l i v e r i n g   a i d 
i n   co n f l i c t - a f fe c te d   co u n t r i e s 6.   I t   d o e s   n o t   re v i e w   t h e   a c t i o n 
t a k e n   by   t h e   Co m m i s s i o n   t o   a d d re s s   t h e   i s s u e s   r a i s e d   i n   t h e 
first  p hase.

T h e   a u d i t   f o c u s e d   o n   c o n f l i c t - a f f e c t e d   c o u n t r i e s   m a i n l y   f o r 
r e a s o n s   o f   m a t e r i a l i t y.   S e v e n   o f   t h e   1 0   c o u n t r i e s   w h i c h   r e -
ceived most funding channelled through the UN in the  period 
2 0 0 6 – 0 8   we re   co n f l i c t- a f fe c te d :   I ra q,   Pa l e s t i n e,   Afg h a n i s t a n , 
Sudan, Côte d’Ivoire, Somalia and Sri Lank a. These seven coun-
t r i e s   r e c e i v e d   3 9   %   o f   t o t a l   E u r o p e A i d   f u n d i n g   c h a n n e l l e d 
thro u gh t he UN,  w h ils t the rema in in g  6 1  %  was  s pre ad acros s 
mo re  t han 80  countr ies  (see Fi gu re  2) .

7.	

8.	

9.	

10.  

11.  

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12.	 Th e   a u d i t   q u e s t i o n   w a s   a d d re s s e d   by   e x a m i n i n g   a   s a m p l e   o f 
p r o j e c t s   i n   A f g h a n i s t a n ,   I r a q   a n d   S u d a n   d u r i n g   t h e   p e r i o d 
2006–08. These three countries roughly represent one quar ter 
o f   a l l   E U   f u n d s   c h a n n e l l e d   t h ro u g h   U N   o rg a n i s a t i o n s   d u r i n g 
this   p er io d.  Th e  p ro jec t s  were  se le c ted   on   th e   bas is   of   mate -
rialit y. They represented about 80 % of the total contributions 
to   t h e   t h re e   c o u n t r i e s   c o n ce r n e d   d u r i n g   t h e   p e r i o d   2 0 0 6 - 0 8 
(see  Fig ur e  3).

13.  

The most common ac tivities of the projects in the sample were 
de -m ining, su ppo r t  to refu gees,  t h e pre parati on  of  ele c ti on s, 
rehab il itat ion and  cap ac it y build in g.

F I G U R E 	 2

CO U N T R I E S 	 R E C E I V I N G 	 E U 	 F U N D S 	 C H A N N E L L E D 	T H R O U G H 	T H E 	 U N	
2006 – 08	 ( M I L L I O N 	 E U R O 	 A N D 	% )

Iraq: 248 mio
10%

Palestine: 236 mio
9%

Afghanistan: 190 mio
8%

Sudan: 163 mio
6%

Other: 1 269 mio
50%

Sri Lanka: 41 mio
2%

Thailand: 41 mio
2%

Source: European Commission.

Bangladesh: 154 mio
6%

Ukraine: 80 mio
3%

Côte d´Ivoire: 48 mio
2%
Somalia: 48 mio
2%

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14.  

Th e au dit res ul ts  are b ased  on: 

(a )  a n   a n a l y s i s   o f   g e n e r a l   d o c u m e n t a t i o n   c o n c e r n i n g   f u n d s 
c h a n n e l l e d   t h r o u g h   t h e   U N   i n c l u d i n g   t h e   C o m m i s s i o n’s 
eval uat io n o f its co operation  wit h  t he  UN ; 

(b)  a   d o c u m e nt a r y   re v i e w   o f   a   s a m p l e   o f   2 3   co nt r i b u t i o n s   to 
1 9   p r o j e c t s   ( i n c l u d i n g   t h r e e   t r u s t   f u n d s )   o n   t h e   b a s i s   o f 
contribution agreements and financial, progress and audit 
rep o r ts  (see  A n nex);

(c)  inter views w ith  Comm is s ion  and  UN   st af f ; 

(d )  an o n-t he - sp ot  audit  in Sudan ; 

(e)  m e e t i n g s   a t   t h e   U N D P ’s   M u l t i - D o n o r  Tr u s t   Fu n d   O f f i c e   i n 

Ne w Yor k .

F I G U R E 	 3

TOTA L 	 F U N D I N G 	2006 – 08	 A N D 	 S A M P L E 	 S I Z E S	

248

190

204

156

163

130

300

250

200

150

100

50

0

Afghanistan

Iraq

Sudan

Total amount of  sampled projects (million euro)
Total contributions 2006–08 (million euro)

Source: European Commission.

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15.	 T h e   d e c i s i o n   t o   f u n d   p r o j e c t s   i n   c o n f l i c t - a f fe c t e d   c o u n t r i e s 
entails a substantial level of r isks, which can only to a cer tain 
ex tent   b e  mitigated.  The  qu esti on   of   wh et he r   th e se   in he re nt 
r i s k s   a re   a cce p t a b l e   i s   a   p o l i t i c a l   d e c i s i o n   a n d   t h e re fo re   n o t 
the  su bj ec t  of t his au dit. 

16.	 N o   o n - t h e - s p o t   v i s i t s   co u l d   b e   c a r r i e d   o u t   fo r   t wo   o u t   o f   t h e 
t h r e e   c o u n t r i e s   ( I r a q   a n d   A f g h a n i s t a n ) ,   d u e   t o   t h e   f a c t   t h a t 
t h e s e   c o u n t r i e s   w e r e   i n   a   p o s t - c o n f l i c t   i f   n o t   c o n f l i c t   s i t u a -
t i o n   a t   t h e   t i m e   o f   t h e   a u d i t .  T h i s   l i m i t e d   t h e   a s s e s s m e n t   o f 
effec t iveness, eff ic ienc y  and in  par t icular   sus tai na bili t y.

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

OBSERVATIONS

15

M O N I TO R I N G 	 S YS T E M S 	 A N D 	 P R O J E C T 	 D E S I G N	
A S 	 K E Y 	 FAC TO R S 	 F O R 	 E F F E C T I V E N E S S 	 A N D	
E F F I C I E N C Y

17.	 T h i s   p a r t   o f   t h e   r e p o r t   o u t l i n e s   t h e   a u d i t   f i n d i n g s   r e l a t i n g 
t o   t h e   k e y   a s p e c t s   o f   e f f i c i e n c y,   e f f e c t i v e n e s s   a n d   s u s t a i n-
a b i l i t y.  To   e n s u r e   t h a t   t h e s e   a r e   a t t a i n a b l e   i t   i s   e s s e n t i a l   t o 
p u t   i n   p l a c e   t h e   n e c e s s a r y   b u i l d i n g   b l o c k s,   t w o   o f   t h e   m o s t 
impor tant being solid project design and adequate monitoring 
an d  rep o r ting.  Thes e  infl uen ce  all   s tag e s  of  th e  proce ss   f rom 
commencement to ensur ing that the funded ac tions continue 
into  t he fo rese eab l e f utu re.

18.	 The subjec t of monitor ing was treated in phase 1 of the audit 
from the point of view of assessing the strength of the systems 
in place. This, phase 2 of the audit, complements the previous 
one,  as indicated  in  paragraph  1 0 .

T H E 	 M O N I TO R I N G 	 O F 	 P R O J E C T S 	 N E E D S	
I M P R O V E M E N T

19.	 T h e   d e c i s i o n   o f   t h e   C o m m i s s i o n   t o   d i r e c t   a i d   t o w a r d s   c o n -
flic t-affec ted countries implies the acceptance of a substantial 
level of inherent risks in terms of the results. Fur thermore the 
d e c i s i o n   t o   i n t e r v e n e   i n   t h e s e   c o u n t r i e s   o f t e n   r e q u i r e s   t h e 
use  of  inter me diar ies,  l ike th e UN ,  an d res ults  i n l im ited  pos -
sibilities to monitor the inter ventions funded on-the -spot. To 
a   l a r g e r   e x t e n t   t h a n   fo r   o t h e r   a c t i v i t i e s   f i n a n c e d   b y   t h e   E U, 
the   Co mmiss io n   therefo re  depen ds   on  i nfor mat ion   produce d 
by third  p ar t ies, w ith  hardl y  any pos s ibi lit y  to cor roborate  i t.

20.	

I n these circumstances, the Commission has, to a large ex tent, 
to   re l y   o n   U N   re p o r t s.   I n   l i n e   w i t h   t h e   FA FA ,   re p o r t s   fo r   e a c h 
co n t r i b u t i o n   a gre e m e n t   a re   re q u i re d   a t   l e a s t   a n n u a l l y   a n d   a 
f i n a l   r e p o r t   s h o u l d   b e   p r o v i d e d   w i t h i n   s i x   m o n t h s   a f t e r   t h e 
end o f t he imp l ement ation per iod. 

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21.	 T h e   i n f o r m a t i o n   t o   b e   p r o v i d e d   i n   r e p o r t s   i s   s e t   o u t   i n   t h e 
co n t r i b u t i o n   a gre e m e n t   fo r   e a c h   a c t i v i t y   f i n a n c e d 7.   I n   o rd e r 
t o   i m p r o v e   t h e   q u a l i t y   o f   U N   r e p o r t s ,   g u i d e l i n e s   o n   r e p o r t -
i n g   w e r e   i n t r o d u c e d   i n   2 0 0 7 8.   I n   l i n e   w i t h   t h e s e   g u i d e l i n e s 
p ro j e c t   re p o r t s   s h o u l d   fo c u s   o n   re s u l t s   rat h e r   t h a n   a c t i v i t i e s 
a n d   t h e re fo re   a l l ow   a   co m p a r i s o n   b e t we e n   t h e   o b j e c t i ve s   i n 
the  contr ibu tio n agreement  an d  ac tual  ac h ie ve me nts.

22.	 The sample of projec ts assessed during the second phase con-
f i r m e d   t h e   m a i n   f i n d i n g s   o f   p h a s e   1   o f   t h e   a u d i t   b e c a u s e   a 
la rg e  pro po r t io n o f rep or ts were: 

(a )  co nsid era bly  del ayed; 

(b)  focusing on ac tivities rather than interim and final results; 

(c)  not detailed enough to assess effec tiveness and efficienc y.

7  FAFA Article 2.1 states that 
‘the contribution-specific 

agreement sets out the 

information to be provided in 

reports by the United Nations to 

the Commission.’.

8  See  ‘Joint Guidelines on 
reporting obligations under 

the FAFA’. The purpose of the 

guideline is to provide practical 

guidance in addition to the 

relevant articles in the FAFA.

Photo 1 —	Building	works	in	the	contex t	of	the	projec t	‘Enhancing	
th e 	c ap ac it y	of	Kh ar toum 	State	in	the	formulation	and	implemen-
tation	of	urban	pla nning 	p olic ies’	(Sudan)	

Source: European Court of Auditors.

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B O X 	 1

R E P O R T I N G 	W E A K N E S S E S 	 I N 	T H E 	 S A M P L E D 	 P R O J E C T S

Delayed	reports

Support to the fifth Sudan population census: 

The implementation period for a census project in Sudan was April 2006 to June 2009. At the time of the 
audit the only available report was from 2007, which means that neither the 2008 report nor the final 
report, which was due in December 2009, had been provided. 

Emergency infrastructural support to the Ministry of Legal Affairs and Constitutional Development and 
the Judiciary of Southern Sudan:

The final report, although due in September 2009, was not yet available at the time of the audit. 

Insufficient	information

Interim disarmament, demobilisation and reintegration programme (IDDRP):

Although the final report shows substantial alterations in terms of the scope of work (expenditure re-
duced by more than 70 % and several activities not carried out) there was no indication of these modi-
fications in previous reports or any other evidence that the Commission had been informed. 

Capacity building for the new administration of Southern Sudan:

65 % of the expenditure in the final report was declared as ‘previous expenditure’ without providing any 
further explanations on the nature or content of the costs involved.

Further support to elections in Afghanistan:

There was no specific report related to this project, although all payments had been made. The only 
available documents were in fact general reports on the election.

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W E A K N E S S E S 	 I N 	 P R O J E C T 	 D E S I G N 	 I M PA I R	
E F F E C T I V E N E S S ,	 E F F I C I E N C Y 	 A N D 	T H E I R	
A S S E S S M E N T

23.   An adequate projec t design is the basis not only for effec tive -

ne ss  b ut  also  fo r effic ienc y. Th e  Cour t  exam in ed  wh et h er :

9  The FAFA states in Article 1.1: 
‘UN submissions of proposals 

will include objectives and 

 — t he o b jec t ives set ou t in  th e cont r ibuti on agreem e nt  were 

indicators of achievement to be 

cl e ar and real istic ;

 — indic ato rs were defin ed where poss i ble ;

 — t h e   t i m e   f r a m e   w a s   w e l l   a d a p t e d   t o   t h e   s p e c i f i c   c i r c u m-
s t a n c e s   a n d   t h e   b u d g e t   s u f f i c i e n t l y   d e t a i l e d   t o   a s s e s s   i n 
p ar tic ul ar t he e fficienc y 9.

agreed in contribution specific 

agreements. Performance 

measures will be based on 

objectives that are specific, 

measurable, attainable, realistic 

and time based.’

24.  

Th e  l arge   ma jo r it y  o f  co ntr ib ut ion   agree m ent s  in   t h e  sam ple 
(1 8 o ut  o f 19) h ad one or more of  th e  follow in g  we ak n es se s : 

(a )  U n s p e c i f i c   o b j e c t i v e s :   h a v e   t h e   e f f e c t   t h a t   p e r f o r m a n c e 
cannot be measured as it is unclear what should have been 
achieved. This also applies for objec tives that are so vague 
t hat   t hey  w il l  always  b e  ach ieved  (t ypi ca lly  ch arac ter is e d 
by formulations like ‘to suppor t…’). I n addition the results 
a n d   i n   p a r t i c u l a r   t h e   i m p a c t   o f   a   p r o j e c t   a r e   m o r e   l i k e l y 
to be limited if the objec tives to be achieved are not clear 
fro m  the  b eginn ing.

(b)  M i s s i n g   i n d i c a t o r s :   i n   t h e   a b s e n c e   o f   i n d i c a t o r s   n e i t h e r 
the Commission nor the UN can measure per for mance and 
t r a c k   re s u l t s,   m o n i t o r   a c t i v i t i e s   a n d   b ro a d e r   o u t p u t s   a d-
eq uatel y and th us  take cor rec tive   ac t io ns  in  t im e.

(c)  N o   b a s e l i n e   c r i t e r i a :   w i t h o u t   b a s e l i n e   c r i t e r i a   i m p r o v e -
m e n t s   c a n n o t   b e   m e a s u re d   b e c a u s e   t h e re   i s   n o   i n fo r m a -
tion on what the situation was like before the inter vention 
star ted and therefore what the results should be measured 
ag ains t. 

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(d )  We a k   l o g i c a l   l i n k   b e t w e e n   a c t i v i t i e s   a n d   o b j e c t i v e s :   t h e 
funds used to finance the projec t ’s ac tivities should result 
i n   t h e   a c h i e ve m e n t   o f   t h e   p ro j e c t ’s   o b j e c t i ve s.   H o we ve r, 
t he l ogical l in k bet ween the  ac ti vi ti es  an d  t h e overall  ob -
j e c t i v e s ,   i n   p a r t i c u l a r   t h o s e   t h a t   a r e   l o n g e r   t e r m ,   i s   n o t 
a l ways   c l e a r.   Co n s e q u e nt l y,   a l t h o u g h   a c t i v i t i e s   m ay   h ave 
been successfully completed, the projects’ intended impact 
may  no t b e achieved.

(e)  A n   u n r e a l i s t i c   t i m e f r a m e :   r e s u l t s   i n   a n   e x t e n s i o n   o f   t h e 
projec t at a later stage, which requires additional work and 
therefore resources from both, the Commission and the UN.

(f )  Und eres timate d r is ks:  al th oug h r isks are  par tic ular ly h i gh 
and difficult to assess in conflic t-affec ted countries it is of 
i m p o r t a n c e   t h a t   t h e y   a re   g i ve n   d u e   c o n s i d e r a t i o n   a t   t h e 
p l anning  st ag e. 

E F F E C T I V E N E S S 	 A N D 	 S U S TA I N A B I L I T Y 	 O F 	T H E	
AC T I V I T I E S 	 F U N D E D

T H E 	 CO M M I S S I O N - F U N D E D 	 AC T I V I T I E S	
AC H I E V E D 	 S O M E 	 G O O D 	 R E S U LT S 	 I N 	 D I F F I C U LT	
C I R C U M S TA N C E S	

25.  

E f fe c t i ve n e s s   i n   t h e   c o n t e x t   o f   t h i s   a u d i t   i s,   i n   l i n e   w i t h   t h e 
Fin ancial  R egu l atio n,  defin ed as  t h e att ai nm ent of  obj ec ti ve s 
and the achievement of results. The Cour t assessed the effec -
tive ness   o f  a  samp l e  of  1 9  p roj ec t s  by   compar in g   th e  inten d-
e d   o b j e c t i ve s   i n   t h e   co n t r i b u t i o n   a gre e m e n t   w i t h   t h e   a c t u a l 
achie ve me nt s.  Th e effec t iven ess was  rate d a s:

Good

If all objectives in terms of output as well as outcome have been 
achieved or are likely to be achieved

Minor weaknesses

If only the main objective(s) are likely to be achieved

Serious weaknesses

If the project will only partially achieve the main objective(s)

Unsatisfactory

If the main objectives were not or will not be achieved

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26.  

T h e   c o o p e r a t i o n   w i t h   o r g a n i s a t i o n s   o f   t h e   U N   h a s   m a d e   a i d 
poss ibl e in a ve r y diffic ult  o perat ion al e nvi ron me nt.  Wh e rea s 
t wo  p ro je c ts  ach ieved th eir obje c ti ves  in  f ull  an d we re  t h ere -
f o r e   r a t e d   a s  ‘g o o d ’,   e i g h t   s h o w e d  ‘ m i n o r   w e a k n e s s e s ’  a n d 
f i ve  ‘s e r i o u s   we a k n e s s e s’.  Two   p ro j e c t s   we re   n o t   f u l l y   i m p l e -
mented  du e  to   sp ec ific  circ ums tan ce s   a nd   t h erefore   th ey   di d 
not achieve their main objec tive and are thus considered ‘un -
satisfac tor y ’. Examples of the weak nesses noted can be found 
in Box 2 and for the overall result see Figure 4 and the A nnex.

27.   D u e   t o   i n s u f f i c i e n t   i n fo r m a t i o n ,   t h e   re s u l t s   c o u l d   n o t   b e   a s -

ses sed  in  t he fo l l ow ing c ases: 

(a )  f o r   o n e   p r o j e c t ,   a l t h o u g h   a l l   p a y m e n t s   h a d   b e e n   m a d e , 

t here wa s no s p ecif ic  repor t for t he  f unde d  proje c t; 

(b)  one major project was a trust fund for which the objec tives 
st ated  in t he co ntr ib u tion agree me nt  con ce r n e d th e  f un d 
a s   a   w h o l e   a n d   we re   t h e re fo re   o f   a   m o re   g e n e r a l   n a t u re. 
A l t h o u g h   m o r e   s p e c i f i c   o b j e c t i v e s   w e r e   d e f i n e d   f o r   t h e 
u n d e r l y i n g   p r o j e c t s ,   t h e r e   c a n   b e   n o   c l e a r   l i n k   b e t w e e n 
the achievement of the projec t objec tives and the general 
o b j e c t i v e s   i n   t h e   c o n t r i b u t i o n   a g r e e m e n t .   Co n s e q u e n t l y 
the effectiveness can only be assessed when the fund itself 
w i l l   b e   c l o s e d,   w h i c h   w a s   n o t   ye t   t h e   c a s e   a t   t h e   t i m e   o f 
t he au dit. 

F I G U R E 	 4

T H E 	 E F F E C T I V E N E S S 	 O F 	 S A M P L E D 	 P R O J E C T S 	 ( BY 	 N U M B E R	 	
O F 	 P R O J E C T S 	 A N D 	 A M O U N T S 	 R E P R E S E N T E D )

Number of projects

2

8

5

2

2

Amount (million euro)

10

133

122

19

207

Source: European Court of Auditors.

Good

Minor weaknesses

Serious weaknesses

Unsatisfactory

Insufficient evidence

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B O X 	 2

E F F E C T I V E N E S S 	 E X A M P L E S

Project	likely	to	achieve	the	intended	results

Support to the return and reintegration of returnees and internally displaced people inside Iraq:

The project was still ongoing at the time of the audit. However, according to the September 2009 report 
the programme was progressing according to plan with several activities already achieved, like provision 
of shelters and safe drinking water, and others even exceeding the expected results.

Projects	which	have	not	achieved	the	intended	results

Mine clearance in Afghanistan:

The project has not achieved its intended results as only 1,6 km 2 out of the 26,6 km 2 as stated in the 
contribution agreement were actually de-mined. 

Emergency infrastructural support to the Ministry of Legal Affairs and Constitutional Development and 
the Judiciary of Southern Sudan:

The project ended in March 2009 without providing the main output, to construct buildings for the 
Ministry of Legal Affairs and for the Judiciary of Southern Sudan. After several delays and extensions of 
the contract, the sub-contracted building company became insolvent and the bank guarantees turned 
out to be falsified. The amount to be recovered was still under discussion at the time of the audit.

Project	for	which	the	impact	is	unclear

International Reconstruction Fund Facility for Iraq: 

Apart from the objective to halve the infant mortality rate, where targets were set and the information 
available suggests that it has not been achieved, there was no means of assessing the extent to which 
the other long-term objectives were achieved as no indicators or baselines were defined and no reliable 
statistics were available.

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28.  

29.  

For the sample audited, no connection has been noted  between 
the size of the projec t or the t ype of the ac tivit y financed and 
its  effec t ivene ss. 

T h e   s e r i o u s   w e a k n e s s e s   n o t e d   i n   s e v e r a l   p r o j e c t s   w e r e   i n 
 ge neral  a resul t  of defic ienc ies in  proje c t d es ign  an d th e  l ac k 
of  mo nitor ing  at a later  s tage.

P h o t o   2   — 	 Co n s t r u c t i o n 	 o f 	 o f f i c e s 	 f o r 	 t h e 	‘ E m e r g e n c y 	 i n f r a s t r u c -
t u r a l 	 s u p p o r t 	 t o 	 t h e 	 M i n i s t r y 	 o f 	 L e g a l 	 Af f a i r s 	 a n d 	 Co n s t i t u t i o n a l	
D evelopment	an d	t he	Judic iar y	of	S outhern	Sudan’

Source: European Court of Auditors.

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R E S U LT S 	 A R E 	 O F T E N 	 N OT 	 AC H I E V E D 	W I T H I N 	T H E	
P L A N N E D 	 I M P L E M E N TAT I O N 	 P E R I O D

30.  

Th e t im e frame  fo r eac h p roj ec t  i s  de fi n e d  i n  i ts  cont r ibut io n 
a g re e m e n t .  Th e   re s p e c t   o f   t h i s   t i m e f r a m e   i m p a c t s   e f fe c t i ve -
ne ss  as  wel l  as efficienc y du e to th e  fa c t t h at: 

(a )  d e l ays   re s u l t   i n   ex te n s i o n s   o f   t h e   p ro j e c t s,   w h i c h   re q u i re 

add itio nal  wo r k  for  the Commiss ion  s ta ff ;

(b)  time ex tensions result in the increase of cer tain costs cat-
egor ies, like staff costs, which have to be funded from the 
Commission’s fixed contribution. Less funding will then be 
avail ab le   to   f in ance  th e  core   ac ti v it ie s  of   th e   proje c t.   Un-
l ess  o the r fundin g is available, pro jec t ac ti vit ie s  wil l t hus 
have  to b e c ur tail ed;

(c)  de lays in th e imp l ementat ion lead  to  a la ck  of  con f i den ce 
a m o n g   t h e   c o n c e r n e d   p a r t i e s   a n d   c a n   a f fe c t   t h e   r e p u t a -
t i o n   o f   t h e   C o m m i s s i o n ,   a s   w a s   c l e a r l y   o b s e r v e d   fo r   t w o 
p ro jec t s in S udan.

31.  

32.  

For  t he  vast   major it y  o f  p ro j ec ts   in   th e  sam ple   th e   in iti al  im-
plem entatio n  per iod  was   con sid erably   exce ed ed. Thi s  was   to 
a large ex tent due to the fac t that the time needed to achieve 
ce r t a i n   re s u l t s   h a d   b e e n   u n d e re s t i m ate d   i n   t h e   co nt r i b u t i o n 
a g r e e m e n t s ,   a s   n o t   e n o u g h   c o n s i d e r a t i o n   w a s   g i v e n   t o   t h e 
diff icul t  circum s tances  in  t he countr i e s. 

Four out of the 19 projec ts were implemented within the time -
f r a m e   i n i t i a l l y   f o r e s e e n .   I n   1 2   c a s e s   t h e   t i m e f r a m e   w a s   e x -
ce e d e d   a n d   fo r   f i ve   o f   t h e s e   t h e   i m p l e m e n t a t i o n   p e r i o d   w a s 
d o u b l e d   o r   m o re   t h a n   d o u b l e d.   N o t a b l y   t wo   o u t   o f   t h e   fo u r 
projec ts which were implemented within the initial timeframe 
we re  d e -mining   p ro jec t s.   For   det ail s  on  th e  de lays   n ote d  se e 
A nn ex and  Fig ur e  5.

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33.  

Fo r   t h e   r e m a i n i n g   t h r e e   p r o j e c t s   t h e   a s s e s s m e n t   o f   t i m e l y 
i m p l e m e n t a t i o n   i s   o f   l i m i t e d   s i g n i f i c a n c e   f o r   t h e   f o l l o w i n g 
reaso ns: 

(a )  f o r   t w o   o f   t h e   t h r e e   t r u s t   f u n d s   ( i n   S u d a n   a n d   I r a q )   t h e 
implementation periods set out in the contribution agree -
m e n t s   h a d ,   a l t h o u g h   l e g a l l y   b i n d i n g,   n o   p r a c t i c a l   e f fe c t 
a s   t h e   r e l e v a n t   t i m e   s c h e d u l e s   w e r e   t h o s e   f o r   t h e   f u n d s 
as  su ch;

(b)  fo r   o n e   o t h e r   p ro j e c t   t h e   a s s e s s m e n t   o f   t h e   t i m e f r a m e   i s 
s t i l l   p r e l i m i n a r y   a s   t h e   p r o j e c t   w a s   a t   a n   e a r l y   s t a g e   o f 
imp l em ent atio n.

F I G U R E 	 5

E X T E N S I O N 	 O F 	T H E 	 I N I T I A L 	 I M P L E M E N TAT I O N	 	
P E R I O D 	 BY 	 P R O J E C T	

Afg 1
Afg 2
Afg 3
Afg 4 –6
Afg 7
Afg 8
Afg 9

Iraq 1– 3

Iraq 4
Sudan 1
Sudan 2
Sudan 3
Sudan 4
Sudan 5
Sudan 6
Sudan 7
Sudan 8
Sudan 9
Sudan10

(1)

(²)

(¹)

0

12

24

36

48

(³)

60

72

Initial duration (months)

Extension (months)

(1) For these two trust funds, although implementation periods were set in legally binding documents, they hardly had any practical 
effects. 
(2) At the time of the audit, the implementation of this project was still at an early stage. 
(3) At the time of the audit, a 12-month extension was under discussion but not yet approved.
Source: European Court of Auditors.

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M O S T 	 R E S U LT S 	 A R E 	 L I K E LY 	TO 	 B E 	 S U S TA I N E D

34.  

S u s t a i n a b i l i t y   i n   t h e   c o n t e x t   o f   t h i s   a u d i t   i s   d e f i n e d   a s   t h e 
ex tent   to   whic h  resu l ts  have  been   mai ntai ne d  af te r   t he   Com-
miss ion fu nding has  ended. 

35.   A s   t h e   m a j o r i t y   o f   p r o j e c t s   i n   t h e   s a m p l e   h a d   n o t   y e t   b e e n 
closed, the audit examined the likely sustainabilit y of projec t 
resu l ts. The b asis fo r th is  assess me nt  was  th e ex te nt to w hi ch 
the   neces sar y  con dit ions  for   sust ain abi li t y,   i. e.   own er s h ip  by 
the   b e neficiar y,   fur ther  fu ndin g,  t he   n eces sa r y   expe r ti se   an d 
the political situation in the countr y or region, were fulfilled. 
The  sus tainab il it y was  rated as follows:

Good

If the results were or will most likely be sustained as all conditions 
for sustainability are fulfilled

Minor weaknesses

If not all conditions for sustainability are fulfilled but nevertheless 
the main results are likely to be sustained

Serious weaknesses

If several or very important conditions for sustainability are not 
fulfilled and therefore there are reasonable doubts about the 
sustainability of the main project results

Unsatisfactory

In case there was evidence that the results will not be maintained

36.  

Fo u r   p ro j e c t s   i n   t h e   s a m p l e   we r e   r a t e d   a s  ‘g o o d ’  i n   t e r m s   o f 
sus t ainabil it y.   Five  p roj ec ts  had  ‘m in or   we ak n e ss es’,   t wo ‘s er-
ious weak nesses’ and one was considered ‘unsatisfac tor y ’. For 
s e v e n   p r o j e c t s   n o   a s s e s s m e n t   c o u l d   b e   m a d e   a s   t h e y   w e r e 
eith er st ill  in an ear l y p hase of  im ple me nt ati on  ( th re e ca se s) , 
the  in fo r mat ion  avail ab l e was in suf fi c ie nt ( t wo c as e s)  or  t h ey 
h a d   n o t   a c h i e v e d   t h e i r   m a i n   o b j e c t i v e s   a n d   t h e r e fo r e   t h e r e 
we re   n o   re s u l t s   to   b e   s u s t a i n e d   ( t wo   c a s e s ) .   Fo r   a n   ove r v i e w 
o f   t h e   r e s u l t s   s e e   A n n e x   a n d   Fi g u r e   6   a n d   e x a m p l e s   c a n   b e 
foun d in  B ox  3.

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37.  

T h e   s a m p l e   o f   p r o j e c t s   a u d i t e d   s h o w e d   t h a t   t h e   c o n d i t i o n s 
f o r   s u s t a i n a b i l i t y   v a r y   i n   i m p o r t a n c e .   T h o s e   p r o j e c t s   w h i c h 
were charac terised by a strong ownership in combination with 
pol itic al   st ab il it y  were  in  f ac t  th e   on es   mos t   li k el y  to  be  sus-
tainab l e.

F I G U R E 	 6

S U S TA I N A B I L I T Y 	 O F 	 R E S U LT S 	 ( BY 	 N U M B E R 	 O F 	 P R O J E C T S 	 A N D 	 A M O U N T S	
R E P R E S E N T E D )

Number of projects

4

5

2

1

2

5

Amount (million euro)

30

219

17

100

11

114

Source: European Court of Auditors.

Good

Minor weaknesses

Serious weaknesses

Unsatisfactory

Insufficient evidence

N/A

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B O X 	 3

S U S TA I N A B I L I T Y 	 E X A M P L E S	

Projects	which	are	likely	to	be	sustained

Support to the fifth population census, Sudan:

Although there was no exit strategy, there is adequate ownership from the beneficiary and future fund-
ing foreseen in the budget. Therefore the results had been sustained at least until the time of the audit 
which was one year after the implementation period had ended.

Enhancing the capacity of Khartoum State in the delivery of vocational training services, Sudan:

The training centres financed under this project are not yet operational. However, it is likely that the 
main results will be sustained, in particular due to the strong ownership by the beneficiary. 

Projects	with	weaknesses	in	terms	of	sustainability

Law and Order Trust Fund, Afghanistan:

The main objective of the Law and Order Trust Fund is to pay salaries of police officers in Afghanistan. 
Due to the limited financial capacity of Afghanistan the fund will, in the medium to longer term, remain 
dependent on further donor funding to continue its activities. 

P h o t o   3   — 	 E q u i p m e n t 	 f o r 	 a 	 t r a i n i n g 	 c e n t r e 	 f i n a n c e d 	 u n d e r 	 t h e	
	p rojec t	‘E nh anc ing	 t he	 c apa cit y	 of	 Khar toum	 State	 in	 the	 deliver y	
of 	vo c at ional	t ra ining	se r vices,	Sudan’	

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Source: European Court of Auditors.

28

10  The Financial Regulation 
states in Article 27 that  ‘Budget 

appropriations should be used 

in accordance with the principle 

of sound financial management, 

namely in accordance with the 

principles of economy, efficiency 

and effectiveness.’.

11  ‘The European Consensus 
on Development’ (OJ C 46, 

24.2.2006) states in paragraph 

25 that  ‘As well as more aid, 

the EU will provide better aid. 

Transaction costs of aid will be 

reduced and its global impact 

will improve.’.

E F F I C I E N C Y 	 O F 	T H E 	 AC T I V I T I E S 	 F U N D E D

38.   One of the principles of sound financial management, as speci-
f i e d   i n   t h e   Fi n a n c i a l   R e g u l a t i o n ,   i s   e f f i c i e n c y 1 0.   E f f i c i e n c y   i s 
als o o ne  o f the o b jec t ives agree d upon in  th e ‘ European  Con-
sens us  on  D eve lop ment ’ 11.

39.  

40.  

41.  

42.  

I n line with the Financial Regulation, efficienc y in the contex t 
o f   t h i s   a u d i t   i s   d e f i n e d   a s   t h e   b e s t   re l a t i o n s h i p   b e t we e n   re -
so urces  emp loyed an d resu l ts ach ie ved.

The Cour t aimed to establish to what ex tent the Commission’s 
c o s t   a s s e s s m e n t s   a n d   m o n i t o r i n g   e n s u r e d   t h a t   t h e   c o s t s   i n -
c l u d e d   i n   b u d g e t s   a n d   f i n a n c i a l   r e p o r t s   w e r e   r e a s o n a b l e   i n 
r e l a t i o n   t o   t h e   s e r v i c e s   p r o v i d e d .   I n   t h i s   c o n t e x t   t h e   C o u r t 
obser ved examples of projec ts which show indications of sub -
op t imal  co st / res ul t  rel ation s, in  pa r ti cular  i n st an ces  of  h ig h 
ad minis t rative  co st s.

I N A D E Q UAT E 	 A S S E S S M E N T 	 O F 	 P R O J E C T 	 CO S T S	

T h e   l e v e l   o f   d e t a i l   i n   b u d g e t s,   s p e c i f i e d   i n   t h e   c o n t r i b u t i o n 
agreements, is of ten not adequate to proper ly assess the rea -
s o n a b l e n e s s   o f   c o s t s   a n d   t o   f a c i l i t a t e   t h e   a s s e s s m e n t   o f   e f -
ficien c y.

Th e   Co m m i s s i o n’s   c o s t   a s s e s s m e n t s,   d u r i n g   t h e   l i fe s p a n   o f   a 
projec t, focus on the eligibilit y of costs with considerably less 
attention being devoted to aspects of efficienc y. They are gen-
eral l y ne it her s ys tematic  no r ade quatel y  doc ume nte d.

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43.   N o   s y s t e m a t i c   u s e   i s   m a d e   o f   a v a i l a b l e   c o s t   c o m p a r i s o n 

mec han ism s s uc h as: 

(a )  co m p a r i n g   t h e   s a m e   co s t   c ate g o r i e s   o f   d i f fe re nt   p ro j e c t s 

(e.g.  st aff co st s for simil ar f unc t ion s) ;

(b)  calculation and compar ison of cost ratios (e.g. propor tion 
of international staff costs to total staff costs, maintenance 
in re latio n to  equ ip ment ) ;

(c)  c o m p a r i s o n   w i t h   b e n c h m a r k s   ( e . g .   a v e r a g e   c o s t s   o f   d e -
m i n i n g   a   c e r t a i n   a r e a   a n d   a v e r a g e   c o s t   p e r   c a p i t a   f o r   a 
cen su s).

S H O R TCO M I N G S 	 H AV E 	 B E E N 	 I D E N T I F I E D 	 I N 	T H E	
S A M P L E D 	 P R O J E C T S

44.  

I n   n i n e   o u t   o f   t h e   1 9   p ro j e c t s   e x a m i n e d,   h i g h   l e ve l s   o f   co s t s 
w e r e   i d e n t i f i e d   w i t h o u t   e v i d e n c e   t h a t   t h e s e   r e s u l t e d   i n   t h e 
i m p r o v e m e n t   o f   t h e   s e r v i c e s   p r o v i d e d   ( e x a m p l e s   a r e   g i v e n 
i n   B o x   4 ) .   N o   a s s e s s m e n t   c o u l d   b e   m a d e   f o r   s e v e n   p r o j e c t s 
a s   t h e   i n fo r m at i o n   ava il a b l e   i n   f i n a n c i a l   re p or t s   wa s   n o t   s u f-
f i c i e n t .   A   s u m m a r y   o f   t h e   re s u l t s   c a n   b e   fo u n d   i n   t h e   A n n e x 
an d  Figu r e  7. 

F I G U R E 	 7

T H E 	 E F F I C I E N C Y 	 O F 	 S A M P L E D 	 P R O J E C T S 	 ( BY 	 N U M B E R 	 O F 	 P R O J E C T S 	 A N D	
A M O U N T S 	 R E P R E S E N T E D )

Number of projects

3

9

7

No shortcomings identified

Shortcomings identified

Insufficient evidence

Amount (million euro)  

15

135

340

Source: European Court of Auditors.

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45.  

I ncidences of high costs were par ticularly noted in the follow-
in g are as:

(a )  I n direc t   cos ts :   in   line   with   the   FAFA  t he  Comm is sio n  con -
t r ib u tes  up   to   7  %  of  direc t  cost s  in   re spe c t   of   th e   UN   or-
ganisation’s indirec t costs. The FAFA also requires in Ar ticle 
5 . 1   t h a t   s u b c o n t r a c t i n g   s h o u l d   n o t   l e a d   t o   h i g h e r   c o s t s . 
However, the audit identified projec ts in which implement-
ing   p ar tner s,  o f ten  ot her   UN  org an is at ion s,   c harg ed   i nd i-
re c t   c o s t s   t h a t   we re   a d d i t i o n a l   to   t h e   7   %   o f   d i re c t   c o s t s 
p ro v i d e d   fo r   i n   t h e   FA FA   a g r e e m e n t ,   a n d   s u b c o n t r a c t o r s 
we re   e n g a g e d   w i t h o u t   e v i d e n ce   t h at   t h i s   d i d   n o t   l e a d   to 
hig her cos ts. 

(b)  R e d u c t i o n   o f   t h e   s c o p e   o f   a c t i v i t i e s   n o t   r e f l e c t e d   i n   t h e 
c o s t s :   t h e   f o l l o w - u p   o f   i n s t a n c e s   w h e r e   p r o b l e m s   a r i s e 
du e  to   t he  cu r t ailm ent  o f  th e  le ve l  of  ac ti vit ie s,   or   wh ere 
t h e r e   i s   i n s u f f i c i e n t   i n f o r m a t i o n   i n   t h e   U N   r e p o r t s ,   w a s 
i n a d e q u a t e .   I n   t w o   p r o j e c t s   a   r e d u c t i o n   o f   t h e   s c o p e   o f 
t he wor k has no t l ed to an e quivale nt re duc t ion  of  th e  E U 
co nt r ibu tio n.

Photo 4 —	Offices	construc ted	under	the	‘Sudan	produc tive	capacity	
re cover y	pro gramm e’

Source: European Court of Auditors.

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B O X 	 4

E X A M P L E S 	 O F 	 S H O R TCO M I N G S 	 I N 	 R E L AT I O N 	TO 	 P R O J E C T 	 CO S T S	

Indirect	costs	

Capacity building for the new administration of Southern Sudan:

This trust fund, to which the EU contributed 1,9 million euro, was implemented by a UN organisation, 
which received a 3 % contribution for indirect costs. However the actual (financial) management of the 
project was subcontracted to a private company which charged another 10 % of the total costs, result-
ing in total administrative costs of more than 13 %.

Sudan productive capacity recovery programme (SPCRP):

In addition to the 7% indirect costs, a management fee (187 338 USD) was paid to another UN organisa-
tion for services provided in the context of this project (e.g. building of offices). 

Reduction	of	the	scope

Mine clearance in Afghanistan:

Although the implementation period was reduced from 12 to three months and the project has in fact 
only partly achieved its objectives, the amount charged to the Commission was not reduced.

Interim disarmament demobilisation and reintegration programme (IDDRP): 

The final report states a reduction of the scope of work and with it a decrease of the total costs by 70 %. 
However, this has not resulted in an equivalent reduction of the Commission’s contribution, which has 
only decreased by 12 % and now represents 65 % of the total costs instead of the planned 20 %.  

P h o to   5   — 	 A 	 co m m u n i c at i o n 	 a n d 	 i n fo r m at i o n 	 ce nt re 	 fo r	
the	‘Sudan	community-based	recover y	and	rehabilitation	
pro gramme	(RRP)’

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Source: European Court of Auditors.

CONCLUSIONS AND 
RECOMMENDATIONS

32

46.  

47.  

T h e   p r e s e n c e   a n d   a c t i v i t i e s   o f   t h e   U N ,   i n   c o n f l i c t - a f f e c t e d 
 areas,  p rovide t he Co mmission wi th  th e  oppor tun it y  to ch an -
nel its aid in difficult circumstances. However, providing aid in 
conflic t-affec ted areas presents special difficulties, only some 
of which can be overcome. As the amount of check ing that can 
be done by the Commission on the spot, is severely cur tailed, 
m o re   re l i a n c e   m u s t   b e   p l a c e d   o n   t h e   i m p l e m e n t i n g   b o d y   t o 
com pe nsate fo r the l ack  o f direc t mon itor i n g by  t h e Comm is-
sio n.

T h e   C o u r t   c o n c l u d e s   t h a t   i n   t h e   c i r c u m s t a n c e s   s o m e   g o o d 
r e s u l t s   w e r e   a c h i e v e d   a n d   t h e   m a j o r i t y   o f   t h e   r e s u l t s   o f 
t h e   p r o j e c t s   c o n c e r n e d   h a v e   r e a s o n a b l e   p r o s p e c t s   o f   b e i n g 
s u s t a i n a b l e .   I n a d e q u a t e   p r o j e c t   d e s i g n   a n d   d e f i c i e n c i e s   i n 
m o n i to r i n g   a n d   re p o r t i n g   h ave   co n t r i b u te d,   h owe ve r,   to   t h e 
we a k n e s s e s   i d e n t i f i e d   i n   p r o j e c t s.   R e g a r d i n g   e f f i c i e n c y,   t h e 
Co m m i s s i o n   d o e s   n o t   fo c u s   s u f f i c i e n t l y   o n   t h i s   e l e m e n t   a n d 
on  en su r ing   th at  it   receives  t he   n ece s sar y   fe ed ba ck   from  t he 
UN rep o r t s. 

P R O J E C T 	 D E S I G N

48.  

T h e   p ro j e c t   d e s i g n   i s   g e n e r a l l y   i n a d e q u a t e,   a s   1 8   o u t   o f   t h e 
1 9   p r o j e c t s   e x a m i n e d   w e r e   a f f e c t e d   b y   d e f i c i e n c i e s   i n   t h i s 
plann ing p ro cess.  As a resu l t, t he re  was  a la c k of cl ar i t y  as to 
what was to b e ac hieved and h ow th e  succe s s of  th e  proj e c ts’ 
a c t i v i t i e s   c o u l d   b e   a s s e s s e d .   Po o r   p r o j e c t   d e s i g n   w a s   a l s o   a 
f a c t o r   c o n t r i b u t i n g   t o   t h e   we a k n e s s e s   n o t e d   i n   t h e   p ro j e c t s 
exam ined.

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

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

T h e   Co m m is s i o n   s h o u l d   e ns u r e   t h a t   c l e a r   p r a c t i c a l   o b j e c-
t i v e s   a r e   s e t   f o r   t h e   p r o j e c t s   t o   w h i c h   i t s   f u n d s   a r e   c o m -
m i t te d . O bj e c ti ve s  sh o ul d b e quanti f i e d  w h e re p ossib l e to 
f acilit ate the e xe cution and monitoring of th e proje c t s and 
t o   p r o v i d e   u s e f u l   f e e d b a c k   f o r   t h e   C o m m i s s i o n .   T h e   l i n k 
b e t w e e n   t h e   p r o j e c t s ’   a c t i v i t i e s ,   t h e   p r o j e c t s ’   o b j e c t i v e s 
an d  th e w i d e r o bj e c ti ve s  sh o ul d  b e   cl e ar l y  sp e ci f i e d .

I n   a d d i t i o n ,   t h e   t i m e   f r a m e   s e t   o u t   i n   t h e   c o n t r i b u t i o n 
a g re e m e nt   sh o u l d   b e   b e t te r   a d ap te d   to   t h e   p r oj e c t   e nv i r-
onm ent to avoid tim ely and cos tly e x tensions of th e imp le -
m e nt ati o n p e r i o d at a l ate r  s t a g e. 

A s the leve l of det ail in the b udge t for ms th e b asis for sub -
s e q u e n t   r e p o r t s ,   i t   s h o u l d   i n c l u d e   a l l   i n f o r m a t i o n   n e c e s -
s a r y   to   a s s e s s   i n   p a r t i c u l a r   t h e   e f f i c i e n c y   o f   t h e   a c t i v i t i e s 
f un d e d . 

E F F E C T I V E N E S S 	 A N D 	 S U S TA I N A B I L I T Y

49.  

Th e  A n nex  il lu st rates  t hat   approximate ly  h a lf   of   th e   proj e c t s 
achieved at least their main objec tives and that there is a rea -
s o n a b l e   l i k e l i h o o d   t h a t   t h e   m a j o r i t y   o f   t h e   re s u l t s   o b t a i n e d 
w i l l   b e   s u s t a i n e d,   p rov i d e d   t h e re   i s   n o   f u r t h e r   d e t e r i o r a t i o n 
in   t he  s ecu r it y   an d  p o l itic al  situat ion .  The   A nn ex  also  s hows, 
however,   t hat   maj or  weak nes ses   we re   note d  i n  cer tai n  of  t h e 
p r o j e c t s .   T h e   r e s u l t s   a r e   b e s t   f o r   S u d a n ,   w h e r e   d u e   t o   t h e 
im p roved  s ecu r it y   situ atio n  th e  Com mi ss ion   is   able   to  t ak e   a 
more active role in the monitoring of its funded projects. How-
e ve r,   fo r   t h e   m a j o r i t y   o f   p ro j e c t s   i n   t h e   s a m p l e   t h e   p l a n n e d 
im p le me nt at io n p er iod was  con s id erably   excee de d.

50.   A s   t h e   Co m m i s s i o n   i s   g e n e r a l l y   d e p e n d e n t   o n   t h e   U N   fo r   i t s 
information on the progress and achievements of the projec ts 
it needs repor ts that are on time and that give sufficient infor-
m at i o n ,   p a r t i c u l a r l y   o n   t h e   a c h i e ve m e nt   o f   re s u l t s.   H owe ve r, 
fo r   t h e   p r o j e c t s   e x a m i n e d ,   m a ny   r e p o r t s   w e r e   e i t h e r   l a t e   o r 
we re no t  com prehens ive.

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

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

T h e   Co m m i s s i o n   s h o u l d   i n s i s t   o n   r e c e i v i n g   t h e   n e c e s s a r y 
repor ts on time and continue its ef for ts to ensure that these 
rep or t s give the information that it ne e ds for ass essing th e 
p ro g re ss an d  su cce ss o f th e p roj e c t s . 

T h e   f o l l o w - u p   b y   t h e   Co m m i s s i o n   s h o u l d   b e   p r o m p t ,   s y s -
te m ati c , cl e ar l y ev i d e n ce d an d co m p re h e nsi ve thro u g h o u t 
th e p roj e c t dur ati o n .

Following each proje c t the Commission should identif y the 
lessons learnt for future inter ventions having special regard 
to  th e asp e c t  o f  sus t ainab ili t y.

E F F I C I E N C Y

51.  

Th e   l a c k   o f   i n fo r m at i o n   fo r   s e ve n   o u t   o f   t h e   1 9   p ro j e c t s   co n-
side rab ly   hamp ered  th e  Cou r t ’s  as se s sm ent  of   ef fi cie n c y.  For 
m o s t   o f   t h e   p r o j e c t s   i t   w a s   n o t   p o s s i b l e   t o   a s c e r t a i n   w h a t 
wo r k t he Comm issio n d id  to  asse ss  ef f ici en c y  as th is  exe rc i se 
wa s   ne it he r  s ys tem atic   nor  adequately   do c um ented. The   em -
phasis was more on the eligibility of costs rather than the need 
t o   i n c u r   c e r t a i n   o f   t h e s e.  Th e   l a c k   o f   d e t a i l   i n   t h e   i n d i v i d u a l 
budgets relating to the contr ibution agreements reduced the 
ex tent to which the reasonableness of costs could be assessed 
and monitored. Ver y little use was made of comparative infor-
mat io n in the  cos t asses sment proce ss.

52.  

I n   n ine  ou t  o f  th e  19  p ro jec ts  in  th e   sam ple   t he   Cour t   id enti-
fied  inc idence s  o f  high   co sts   wit h out   e v ide n ce   t hat  th es e  re -
sulted in an increase or improvement of the ser vices provided.

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

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

A  s y s te m ati c  ass e ssm e nt o f  th e cos t s  sh o ul d  b e  p e r f o r m e d 
a n d   t h e   r e s u l t s   s h o u l d   b e   a d e q u a t e l y   d o c u m e n t e d .   M o r e 
f o c u s   s h o u l d   b e   p u t   o n   e f f i c i e n c y   a n d   t h e   a s s e s s m e n t   o f 
cos t s  sh o ul d n ot b e lim i te d to  qu e s ti o ns  o f   e li g ib ili t y.

W h e re f easib l e, b e n chmar k s sh o ul d b e d eve l o p e d f o r co m -
mon cost items in order to facilitate the assessment of costs 
in p roj e c t  p ro p os als an d f inan cial  re p o r t s .

This report was adopted by Chamber III, headed by Mr Jan KINŠT, 
Member of the Court of Auditors, in Luxembourg at its meeting of 
8 March 2011.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA
President

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

36

A N N E X

Number

Title

Effectiveness

Likely 
sustainability

Respect  
of the  
timeframe

Anti-personnel mine and 
ammunition stockpile destruction

Serious 
weaknesses

Minor 
weaknesses

N/A (main 
objectives not 
achieved)

Insufficient 
evidence

Unsatisfactory

Good

Good

Good

No

No

No

Yes

Yes

Yes

Yes

Minor 
weaknesses

N/A (fund)

Uunsatisfactory

Insufficient 
evidence

Serious 
weaknesses

Serious 
weaknesses

Minor 
weaknesses

Minor 
weaknesses

Insufficient 
evidence

Afgh 1

Afgh 2

Afgh 3

Support to governance in the 
Islamic Republic of Afghanistan — 
Census 

Further support to elections in 
Afghanistan

Afgh 4-6

Law and Order Trust Fund for 
Afghanistan (LOTFA)

Afgh 7

Mine clearance in Afghanistan

Afgh 8

Afgh 9

Iraq 1-3

Iraq 4

Sudan 1

Regional programme in support 
of Afghan refugees in Iran and 
Pakistan, and of returnees in 
Afghanistan

Support to the mine action sector in 
Afghanistan

International Reconstruction Fund 
Facility for Iraq (IRRFI)

Support to the return and 
reintegration of returnees and 
internally displaced people inside Iraq

Interim disarmament, 
demobilisation and reintegration 
programme (IDDRP)

Good

N/A (project still 
at an early stage)

N/A (project still 
at an early stage)

Insufficient 
evidence

Serious 
weaknesses

Serious 
weaknesses

Sudan 2

Capacity development for aid 
management and coordination

Minor 
weaknesses

Minor 
weaknesses

Sudan 3

Support to the fifth population 
census Sudan 

Sudan 4

Enhancing the capacity of Khartoum 
State in the formulation and 
implementation of urban planning 
policies 

Good

Good

Minor 
weaknesses

Minor 
weaknesses

Sudan 5

Capacity-building for the new 
administration of Southern Sudan

Serious 
weaknesses

Insufficient 
evidence

N/A (fund)

No

No

No

No

Efficiency

Shortcomings 
identified

Shortcomings 
identified

Insufficient 
evidence

Insufficient 
evidence

Shortcomings 
identified

Insufficient 
evidence

Insufficient 
evidence

Insufficient 
evidence

Shortcomings 
identified

No 
shortcomings 
identified

Insufficient 
evidence

No 
shortcomings 
identified

Shortcomings 
identified

Amount  
(million 
euro)

6

15

9

100

2

4

20

198

6

12

2

4

2

2

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

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No

No

No

No

No

No 
shortcomings 
identified

Shortcomings 
identified

Shortcomings 
identified

Shortcomings 
identified

Shortcomings 
identified

11

4

5

39

51

Sudan 6

Sudan 7

Enhancing the capacity of Khartoum 
State in the delivery of vocational 
training services

Emergency infrastructural support 
to the Ministry of Legal Affairs and 
Constitutional Development and the 
Judiciary of Southern Sudan

Sudan 8

De-mining in Southern Sudan

Minor 
weaknesses

Minor 
weaknesses

Unsatisfactory

Minor 
weaknesses

N/A (main 
objectives not 
achieved)

Serious 
weaknesses

N/A (project 
still at an early 
stage)

Sudan 9

Sudan productive capacity recovery 
programme (SPCRP)

Minor 
weaknesses

Sudan 10

Community-based recovery and 
rehabilitation programme (RRP)

Minor 
weaknesses

N/A (project still 
at an early stage)

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38

REPLY OF THE 
COMMISSION

EXECUTIVE	SUMMARY

I .
T h e   U n i t e d   N a t i o n s   ( U N )   i s   a   k e y   p a r t n e r 
fo r   t h e   Co m m i s s i o n .  Wo r k i n g   w i t h   t h e   U N 
a l l o w s   t h e   C o m m i s s i o n   t o   i n t e r v e n e   i n 
s i t u at i o n s   f ro m   w h i c h   t h e   E U   m i g ht   o t h e r -
wise be absent — such as situations where 
co o p e rat i o n   h a s   b e e n   i nte r r u p te d,   co n f l i c t 
a f fe c te d   s i t u at i o n s,   p o s t   co n f l i c t- re cove r y 
o r   w h e r e   t h e   l e g i t i m a c y,   s p e c i a l i s t   m a n -
d ate   o r   n e u t ra l i t y   o f   t h e   U N   a re   n e e d e d.   I t 
a l s o   m e a n s   t h a t   t h e   Co m m i s s i o n   c a n   c o n -
t r i b u t e   t o   l a r g e r   i n i t i a t i v e s ,   b o t h   f i n a n -
c i a l l y   a n d   t h r o u g h   t h e   g o v e r n a n c e   s t r u c -
tures  in   place,   e nsur ing   th at  th e  E U  al ways 
h a s   a   s ay,   b o t h   at   a   p o l i c y   a n d   p ro gra m m e 
m a n a g e m e n t   l e v e l .   T h e   d e c i s i o n   t o   w o r k 
w i t h   t h e   U N   i s   t a k e n   fo l l o w i n g   c o n s i d e r a -
tion  of th e available alter native s. 

I I.
T h e   C o m m i s s i o n   h a s   i s s u e d   i n s t r u c t i o n s 
t h at   i t s   d e c i s i o n s   to   wo r k   w i t h   a n   i nte r n a -
t i o n a l   o r g a n i s a t i o n   s h o u l d   b e   t a k e n   w i t h 
d u e   c o n c e r n   f o r   v a l u e   f o r   m o n e y   a n d     b e 
f u l l y   d o c u m e n t e d   a n d   t h a t   a l t e r n a t i v e s 
s h o u l d   b e   s y s t e m a t i c a l l y   c o n s i d e r e d   t o 
e n s u re   t h at   t h e   m o s t   e f fe c t i ve   c h a n n e l   fo r 
a i d   d e l i v e r y   i s   s e l e c t e d .   T h e   C o m m i s s i o n 
i s   a l s o   ex p l o r i n g   t h e   d e ve l o p m e nt   o f   j o i nt 
mon itor in g meth ods with  th e U N .

T h e   s e c o n d   p h a s e   o f   t h i s   t w o - p a r t   a u d i t 
f o c u s e s   o n   E U   a s s i s t a n c e   t o   c o n f l i c t -
a f f e c t e d   c o u n t r i e s ,   m a n a g e d   b y   t h e 
D i re c t o r a t e - G e n e r a l   fo r   D e ve l o p m e n t   a n d 
Co operation — EuropeAid. However, this is 
o n l y   p a r t   o f   t h e   to t a l   d e ve l o p m e n t   a s s i s t -
ance and humanitar ian aid provided by the 
Commission  t hrough th e UN.

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

3939

REPLY OF THE 
COMMISSION

I V.	(e)
T h e   C o m m i s s i o n   a g r e e s   w i t h   t h e   C o u r t ’s 
c o n c l u s i o n   o n   t h e   s u s t a i n a b i l i t y   o f 
projec ts.

I V.	(f )
Co m m i s s i o n   s t a f f   a re   a s k e d   to   e n s u re   t h at 
t h e y   u n d e r s t a n d   t h e   h e a d i n g s   a n d   i t e m s 
o f   t h e   b u d g e t ,   t h e i r   co nte nt   a n d   p u r p o s e. 
W h e r e   t h e   l e v e l   o f   d e t a i l   i s   i n s u f f i c i e n t , 
staff are expec ted to seek fur ther infor ma-
tion and document the results of their dis-
cussions in  th e  file. 

S t a f f   re ce i ve d   f u r t h e r   i n s t r u c t i o n s   i n   J u n e 
2 0 0 9   r e q u i r i n g   t h e m   t o   t a k e   a c c o u n t   o f 
alter n atives and cost  e ffec t iven e ss  is s ue s.

I t   s h o u l d   n e v e r t h e l e s s   b e   n o t e d   t h a t   t h e 
S t a n d a r d   C o n t r i b u t i o n   A g r e e m e n t   d o e s 
n o t   i m p o s e   a   b u d g e t   t e m p l a t e   a n d   h e n c e 
i nte r n at i o n a l   o rg a n i s at i o n s   a re   f re e   to   u s e 
their own for mat, save for calls for propos -
als.

I n   f a c t ,   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   a r e 
encouraged to use their own budget struc-
tures in line with their accounting systems, 
w h i c h   a l l o w s   f o r   m o r e   r o b u s t   f i n a n c i a l 
repor t ing an d a cle arer  aud it  trai l. 

V.	 (a)
T h e   C o m m i s s i o n   h a s   t h e   t o o l s   a t   i t s   d i s -
p o s a l   t o   e n s u r e   t h a t   p r o j e c t s   i n c l u d e   a l l 
n e c e s s a r y   o b j e c t i v e s   a n d   i n d i c a t o r s .   T h e 
q u e s t i o n   o f   t i m e f ra m e   i n   co n f l i c t- a f fe c te d 
co u nt r i e s   i s   d e p e n d e nt   o n   t h e   s i t u at i o n   i n 
a   p a r t i c u l a r   p o l i t i c a l   c o n t e x t   a n d   c a n   b e 
modifie d wit hout necessar ily affe c ti n g  t he 
overall outcome.

V.	 (b)
Th e   Co m m i s s i o n   re co gn i s e s   t h at   i m p rove -
m e n t s   c a n   b e   m a d e   t o   r e p o r t i n g   a n d 
r e v i s e d   g u i d e l i n e s   h a v e   r e c e n t l y   ( D e c e m -
b e r   2 0 1 0 )   b e e n   a g r e e d   w i t h   t h e   U N   f o r 
impleme nt ation on a tr ial bas is. 

III.
Th e   a u d i t   o f   t h e   Co u r t   h i g h l i g ht s   t h e   d i f f i -
culties of implementation met by the Com -
mission and the United Nations in conflic t-
affec ted situ at io ns. 

IV.	(a)
Th e   Co m m i s s i o n   re co gn i s e s   t h at   i m p rove -
m e n t s   c a n   b e   m a d e   t o   r e p o r t i n g ,   b o t h   i n 
t e r m s   o f   q u a l i t y   a n d   t i m i n g ,   a n d   r e v i s e d 
g u i d e l i n e s   h ave   re ce nt l y   ( D e ce m b e r   2 0 1 0 ) 
b e e n   a gre e d   w i t h   t h e   U N   fo r   i m p l e m e n t a -
tion on  a t r ial ba s is. 

IV.	(b)
I n   c o n f l i c t - a f f e c t e d   c o u n t r i e s   t h e   s i t u a -
t i o n   i s   u n s t a b l e   a n d   d i f f i c u l t i e s   i n   p ro j e c t 
d e s i g n   a r e   f r e q u e n t .   T h e   C o m m i s s i o n 
s e e k s ,   a s   f a r   a s   p o s s i b l e ,   t o   e n s u r e   t h a t 
a c t i o n s   c a n   b e   i m p l e m e nte d   f l ex i b l y   s o   a s 
to ach ieve  a  s atis fac to r y imp ac t.

IV.	(c)
T h e   Co u r t ’s   c o n c l u s i o n s   t h a t ,   b y   c h a n n e l -
l i n g   f u n d s   t h r o u g h   t h e   U N ,   t h e   C o m m i s -
s i o n   h a s   b e e n   a b l e   t o   d e l i v e r   a i d   i n   a r e a s 
w h i c h   w o u l d   o t h e r w i s e   h a v e   b e e n   v e r y 
d i f f i c u l t   to   t a rg e t ,   co n f i r m   t h e   f i n d i n g s   o f 
a n   i n d e p e n d e nt   e va l u at i o n   re p o r t   e nt i t l e d 
E v a l u a t i o n   o f   t h e   C o m m i s s i o n ’s   e x t e r n a l 
co o p e ra t i o n   w i t h   p a r t n e r   co u n t r i e s   t h ro ug h 
t h e   o r g a n i s a t i o n s   o f   t h e   U N   f a m i l y ,   w h i c h 
wa s publis he d in  M ay 2008. 

IV.	(d)
T h e   C o u r t   b a s e d   i t s   a u d i t   w o r k   o n   t h r e e 
m a j o r   c o n f l i c t   s i t u a t i o n s   a n d   t h e   d i f f i c u l -
t i e s   o f   i m p l e m e n t a t i o n   i n   s u c h   s i t u a t i o n s 
a re   to   b e   ex p e c te d.   I n   s u c h   c i rc u m s t a n ce s, 
th e time frame w il l  neces sar il y b e  a ffe c ted 
b y   e v e n t s   a s   t h e y   u n f o l d   a n d   i t   m a y   b e 
n e c e s s a r y   t o   r e v i s e   p l a n s   a n d   e x t e n d   t h e 
t i m e f r a m e   t o   e n s u r e   s a t i s f a c t o r y   i m p l e -
ment ation.

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

C a s e s   o f   u n s a t i s f a c t o r y   r e p o r t i n g   a r e   fo l -
l o w e d   u p   w i t h   t h e   U N   b y   p r o j e c t   m a n a g -
e r s   a n d   a n y   p a y m e n t   o f   a m o u n t s   d u e   o n 
a   p ro j e c t   a re   d e p e n d e nt   o n   a cce p t a n ce   by 
th e  au tho r is in g  o fficer  of  inter im   an d  f in al 
repor ts. 

V.	(c)
T h e   C o m m i s s i o n   c o n t i n u a l l y   s e e k s   t o 
e n s u re   s o u n d   f i n a n c i a l   m a n a g e m e nt,   e ve n 
i n   d i f f i c u l t   e nv i ro n m e n t s,   i n   l i n e   w i t h   t h e 
Fi n a n c i a l   R e g u l at i o n .   N e ve r t h e l e s s,   i t   i s   to 
b e   e x p e c t e d   t h a t   c o s t s   m a y   b e   h i g h e r   i n 
s u c h   e n v i r o n m e n t s .   T h i s   w i l l   b e   t h e   c a s e 
for all  dono rs.

C o s t   c o m p a r i s o n s   a r e   d i f f i c u l t   i n   v a r i o u s 
c o u n t r i e s,   a n d   a re   e ve n   m o re   c h a l l e n g i n g 
i n   a   c o n f l i c t - a f f e c t e d   e n v i r o n m e n t .   C o s t 
c ate g o r i e s   m ay   va r y   s i gn i f i c a nt l y   b e t we e n 
the regions of one single countr y and over 
time.

40

REPLY OF THE 
COMMISSION

AUDIT	SCOPE	AND	APPROACH

9 .	 (a)
Th e   Co m m i s s i o n   to o k   m e a s u re s   i n   2 0 0 9   to 
i m p r o v e   t h e   m a n a g e m e n t   o f   f u n d s   c h a n -
n e l l e d   t h r o u g h   t h e   U N .   T h e   p r o c e s s   f o r 
d e c i d i n g   t o   w o r k   w i t h   a n   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   h a s   b e e n   i m p r o v e d .   I n   a d d i -
tion, the need for better documentation of 
d e c i s i o n s   t a k e n   a n d   gre ate r   co n s i d e rat i o n 
of th e alter n atives is fully  recogn i se d.

I t   s h o u l d   a l s o   b e   n o t e d   t h a t   C o u n c i l   h a s 
a l s o   a d o p te d   co n c l u s i o n s   o n   t h e   re p o r t   at 
t h e   e n d   o f   M a r c h   2 0 1 0 ,   w h i c h   r e c o g n i s e 
the steps already taken by the Commission 
to m eet t hese recommen dation s. 

9 .	 (b)
The Commission has indicated that robust -
n e s s   o f   f i n a n c i a l   p r o c e d u r e s   i s   a s s e s s e d 
b y   t h e   f o u r - p i l l a r   r e v i e w   o f   t h e   o r g a n i s a -
t i o n s   a n d   a t   p r o j e c t   l e v e l   b y   t h e   v e r i f i c a -
t i o n   m i s s i o n s   f o r   w h i c h   t h e   C o m m i s s i o n 
a n d   t h e   U N   a g re e d   o n   t e r m s   o f   re fe re n c e. 
T h e   C o m m i s s i o n   r e c o g n i s e d   t h e   i m p o r -
t a n ce   o f   i m p rov i n g   t h e   q u a l i t y   a n d   t i m i n g 
o f   r e p o r t i n g   a n d   r e v i s e d   g u i d e l i n e s   h a v e 
r e c e n t l y   ( D e c e m b e r   2 0 1 0 )   b e e n   a g r e e d 
w i t h   t h e   U N   fo r   i m p l e m e n t a t i o n   o n   a   t r i a l 
b a s i s.   I t   i s   a l s o   ex p l o r i n g   t h e   d e ve l o p m e nt 
o f   j o i nt   m o n i to r i n g   m e t h o d s   w i t h   i t s   p a r t-
n ers. 

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

4141

REPLY OF THE 
COMMISSION

T h e   u p d a t e d   g u i d e l i n e s   w i l l   a d d r e s s   t h e 
t h r e e   i s s u e s   r a i s e d   b y   t h e   C o u r t .   I n   p a r -
t i c u l a r,   t h e y   w i l l   s t re s s   t h e   n e e d   fo r   t i m e l y 
re p o r t i n g   a n d   fo c u s i n g   o n   re s u l t s   a n d   w i l l 
p r o v i d e   g u i d a n c e   o n   t h e   l e v e l   o f   d e t a i l s 
ex p e c te d.   Fu r t h e r m o re,   t h e y   w i l l   h i g h l i g ht 
t h e   s a n c t i o n s   a t   t h e   d i s p o s a l   o f   t h e   E U   i n 
th e case of late or in complete  repor t s.

B ox	 1 :	
D el aye d  rep o r ts
Supp or t to th e  fif t h  Suda n  p opulation 
ce ns us
Th e   U N   o rg a n i s at i o n   m a n a gi n g   t h e   ce n s u s 
p ro j e c t   i n   S u d a n   re ce i ve d   s e ve ra l   re m i n d -
ers but was unable to submit a final repor t 
b e fo re   t h e   a c t i v i t i e s   o f   o t h e r   d o n o r s   we re 
c o m p l e t e d .   T h e   f i n a l   r e p o r t   w a s   r e c e i v e d 
in  ear ly  D ecember  2 0 10.

E me rgen c y  inf rastruc t ural s upp or t   
to  th e  M in istr y  of  Legal  Affairs  an d 
Con stit utiona l D evelopme n t an d t he 
Judiciar y  of  S outh e rn   Sudan
Fo l l o w i n g   r e m i n d e r s   b y   t h e   C o m m i s s i o n 
a n d   a   t h r e a t   t o   r e c o v e r   f u n d s ,   t h e   f i n a l 
repor t  was received in S epte mb er   2 0 1 0 .

Ins uff ic i ent  inf orma ti on
In teri m  disarmam en t, de mobilis ation  an d 
re integratio n  pro gram me  ( ID DRP)
The Commission was in constant communi -
c at i o n   w i t h   t h e   U N   o n   t h e   i m p l e m e nt at i o n 
o f   t h e  ‘ I n t e r i m   d i s a r m a m e n t ,   d e m o b i l i s a -
t i o n   a n d   r e i n t e g r a t i o n   p r o g r a m m e '.   T h i s 
p r o j e c t   w a s   c o n s i d e r e d   t o   b e   o f   c r u c i a l 
i m p o r t a n c e   fo r   t h e   c o m p r e h e n s i v e   p e a c e 
a g r e e m e n t   i m p l e m e n t a t i o n   a n d   o v e r a l l 
sec ur it y  an d peace in  S udan. 

OBSERVATIONS

19. –20.
T h e   C o u r t ’s   i n a b i l i t y   t o   v i s i t   t w o   o f   t h e 
s e l e c te d   co u nt r i e s   re f l e c t s   t h e   d i f f i c u l t i e s 
inherent  in wor k ing in s uc h envi ro nme nts. 

The Commission considers that it is able to 
m o n i t o r   p r o g r a m m e s   i n   c o n f l i c t - a f f l i c t e d 
c o u n t r i e s   b y   r e l y i n g   o n   r e p o r t s   p r o d u c e d 
b y   t h e   i m p l e m e n t i n g   p a r t n e r s .   R e p o r t i n g 
b y   i m p l e m e n t i n g   p a r t n e r s   i s   a   k e y   s o u rc e 
o f   i n f o r m a t i o n   a n d   m o n i t o r i n g   f o r   a l l 
d o n o r s   i n   s u c h   c i rc u m s t a n c e s   a n d,   i n   l i n e 
with the principles of aid effec tiveness and 
g o o d   d o n o r s h i p,   t h e   Co m m i s s i o n   i s   co n f i -
d e n t   t h a t   i t   c a n   r e l y   o n   c o m m o n   r e p o r t s 
produce d fo r do nor s as a who le.

Th e   Co m m i s s i o n   re co gn i s e d   t h at   t h e re   a re 
improvements to be made to repor ting and 
r e v i s e d   g u i d e l i n e s   h a v e   r e c e n t l y   ( D e c e m -
b e r   2 0 1 0 )   b e e n   a g r e e d   w i t h   t h e   U N   f o r 
implem entatio n on a tr ial  bas is.

21.
R e p o r t i n g   i s   o n e   e l e m e n t   o f   t h e   s y s t e m s 
d e ve l o p e d   b y   t h e   Co m m i s s i o n   t o   m o n i t o r 
a n d   c h e c k   t h e   m a n a g e m e n t   o f   E U   f u n d s 
a p p l y   e q u a l l y   t o   p r o g r a m m e s   i n   c o n f l i c t -
a f fe c t e d   c o u n t r i e s.  T h e   Co m m i s s i o n   h a s   a 
co m p re h e n s i ve   co nt ro l   f ra m e wo r k ,   i n c l u d -
i n g   c o m p l i a n c e   a s s e s s m e n t   o f   a n   o r g a n i -
sation's financial control systems, the pos-
s i b i l i t y   t o   p e r f o r m   o n - t h e - s p o t   c h e c k s   o f 
systems and procedures, field missions and 
res ult s- or iente d  m onito r ing.

22.
T h e   C o m m i s s i o n   h a s   a l r e a d y   r a i s e d   i t s 
c o n c e r n s   a b o u t   t h e   q u a l i t y   a n d   d e l a y s   i n 
re p o r t i n g   w i t h   t h e   U N .   Pro b l e m s   h ave   a l s o 
b e e n   f l a g g e d   t h r o u g h   t h e   t w i c e   y e a r l y 
e x t e r n a l   a s s i s t a n c e   m a n a g e m e n t   r e p o r t s . 
R e v i s e d   g u i d e l i n e s   h ave   re ce n t l y   ( D e ce m -
b e r   2 0 1 0 )   b e e n   a g r e e d   w i t h   t h e   U N   f o r 
implem entatio n on a tr ial  bas is.

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

42

REPLY OF THE 
COMMISSION

Capacit y  buil di ng for  t he new 
admin istra tio n  of S outher n  Su dan
I n the case of the capacit y building for the 
n e w   a d m i n i s t r a t i o n   o f   S o u t h e r n   S u d a n , 
t h e   C o m m i s s i o n   c o n t r i b u t e d   t o   a   t r u s t 
f u n d   t h a t   p re - d a t e d   t h e   p e a c e   a g re e m e n t 
a n d   t h e   m o m e n t   o f   t h e   C o m m i s s i o n   c o n -
t r i b u t i o n   ( 2 0 0 7 )   by   s e ve ra l   ye a r s   fo r   w h i c h 
p r o j e c t   e x p e n d i t u r e   h a d   p r e v i o u s l y   b e e n 
a cce p te d   by   t h e   s te e r i n g   co m m i t te e.   H ow -
e ve r,   t h e   Co m m i s s i o n   a gre e s   t h at   t h e  ‘p re -
vious expenditure’ refer red to by the Cour t 
n e e d s   t o   b e   c l a r i f i e d ,   a n d   i s   t a k i n g   t h e 
n e ce s s a r y   s te p s   to   d o   s o.  Th e   Co m m i s s i o n 
c h o s e   t h i s   m e c h a n i s m   to   co o rd i n ate   te c h-
n i c a l   a s s i s t a n c e   p ro v i d e d   b y   d o n o r s   m o re 
effec tively.

Fur ther supp or t to elec t ions in  Af g han is tan
G i v e n   t h e   h i g h   p o l i t i c a l   i m p o r t a n c e   a n d 
i n   a n   e f fo r t   t o   c o n t r i b u t e   t o   f r e e   a n d   f a i r 
e l e c t i o n s ,   t h e   C o m m i s s i o n   a c c e p t e d   t o 
wo r k   w i t h   a n   e x p e r i e n ce d   U N   p a r t n e r   a n d 
to   re l y   o n   g e n e ra l   re p o r t s   ava i l a b l e   to   t h e 
i n t e r n a t i o n a l   d o n o r   c o m m u n i t y   t o   a s s e s s 
t h e   o u t c o m e   o f   t h e   e l e c t i o n s   i n   A f g h a n i -
s t a n .   I t   d i d   n o t   t h e re fo re   re c e i ve   d e t a i l e d 
f i n a n c i a l   i n fo r m a t i o n .   H o w e v e r,   t h e   C o m -
m i s s i o n   i s   s a t i s f i e d   t h a t   i t   r e c e i v e d   v a l u e 
f o r   m o n e y.   T h e   f i n a l   r e p o r t   c o v e r i n g   t h e 
n a t i o n a l   a s s e m b l y   a n d   p r o v i n c i a l   c o u n -
c i l   e l e c t i o n s   f o r   2 0 0 5   c o n t a i n e d   f i n a n c i a l 
i n fo r m at i o n   s h ow i n g   t h e   co s t   o f   e l e c t i o n s 
per registered voter at 14 USD, which com-
p a r e s   p o s i t i v e l y   w i t h   o t h e r   p o s t - c o n f l i c t 
countr ies.

24.
Th e   Co m m i s s i o n   a c k n ow l e d g e s   t h e   i m p o r -
t a n ce   o f   p ro j e c t   d e s i gn   b u t   co n s i d e r s   t h at 
o n l y   t w o   o f   t h e   1 8   c a s e s   h a d   w e a k n e s s e s 
t h a t   c o u l d   d i r e c t l y   i n f l u e n c e   t h e   p r o j e c t 
res ult s.

T h e   C o m m i s s i o n   h a s   t a k e n   m e a s u r e s , 
through the update of the repor ting guide -
l i n e s ,   t o   i m p r o v e   p r o j e c t   d e s i g n ,   w h i c h   i t 
considers meets the concer ns of the Cour t.

T h e   q u e s t i o n   o f   t i m e   f r a m e   i n   c o n  f l i c t -
affec ted countr ies is dependent on the sit -
u at i o n   i n   a   p a r t i c u l a r   p o l i t i c a l   co ntex t   a n d 
c a n   b e   m o d i f i e d   t h r o u g h   a m e n d m e n t s   t o 
t h e   co nt ra c t,   w i t h o u t   n e ce s s a r i l y   a f fe c t i n g 
t h e   o v e r a l l   o u t c o m e .   Q u e s t i o n s   o f   e s t a b -
l i s h m e n t   o f   r e l i a b l e   b a s e l i n e   i n f o r m a t i o n 
and assessment of r isk in conflic t- affec ted 
co u n t r i e s   a re   n e ce s s a r i l y   p ro b l e m a t i c   a n d 
b o t h   t h e   C o m m i s s i o n   a n d   i t s   p a r t n e r s 
en deavour  to e nsure that  in for m at io n  is  as 
reliable as possible.

2 6.
O n e   o f   t h e   p r o j e c t s   i d e n t i f i e d   b y   t h e 
Co u r t   a s   h av i n g   s e r i o u s   we a k n e s s e s   i s   t h e 
LOT FA   p ro j e c t.  Th e   Co m m i s s i o n   wo u l d   l i k e 
t o   h i g h l i g h t   t h a t   p o l i c e   r e f o r m   i s   b o t h 
h i g h l y   c o m p l e x   a n d   p o l i t i c a l l y   i m p o r t a n t 
i n   re b u i l d i n g   a   s t a b l e   a n d   s e c u re   e nv i ro n-
m e n t   i n   A f g h a n i s t a n .   P o l i c e   o f f i c e r s   a r e 
r e c e i v i n g   t h e i r   s a l a r i e s   r e g u l a r l y   a n d   o n 
t i m e   w h i c h   i s   o n e   o f   t h e   m a i n   o u t p u t s   o f 
t h e   p r o j e c t .   I n   a d d i t i o n ,   t h e   e l e c t r o n i c 
p a y m e n t   s y s t e m   i s   a p p l i e d   c o u n t r y w i d e , 
t h e r e b y   i m p r o v i n g   t h e   r e l i a b i l i t y   o f   t h e 
s ys te m .  Th e   Co m m i s s i o n   wo u l d   a l s o   l i k e   to 
h i g h l i g h t   t h a t   i n d e p e n d e n t   r e p o r t s   h a v e 
s h o w n   g o o d   p r o g r e s s .   I n   p a r t i c u l a r   p e r -
c e p t i o n s   o f,   a n d   r e s p e c t   f o r,   t h e   A f g h a n 
national police have improved and Afghans 
a r e   m o r e   c o n f i d e n t   a b o u t   t h e i r   p e r s o n a l 
s e c u r i t y.  T h e   Co m m i s s i o n   d o e s   n o t   t h e re -
fo re   c o n s i d e r   t h a t   LOT FA   p re s e n t s   s e r i o u s 
w e a k n e s s e s ;   i t   i s   i n   f a c t   a   m a j o r   c o n t r i b -
u t i n g   f a c t o r   t o   a   m o r e   e f f e c t i v e   p o l i c e 
 system.

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

4343

REPLY OF THE 
COMMISSION

E me rgen c y  inf rastruc t ural s upp or t  to th e 
M i nis tr y o f  Legal  Affairs  an d Cons ti tu tion al 
D evel opme nt  and  th e  Judiciar y  of  S ou the rn 
Sudan
A s   r e g a r d s   t h e   p r o j e c t  ‘ E m e r g e n c y   i n f r a -
s t r u c t u ra l   s u p p o r t   to   t h e   M i n i s t r y   o f   Le g a l 
A f f a i r s   a n d   C o n s t i t u t i o n a l   D e v e l o p m e n t 
a n d   t h e   J u d i c i a r y   o f   S o u t h e r n   S u d a n’,   t h e 
p a r t n e r   s u b m i t t e d   a n   e x t e n s i o n   r e q u e s t 
t o w a r d s   t h e   e n d   o f   t h e   i m p l e m e n t a -
t i o n   p e r i o d.  T h e   re l a t e d   c o s t s   a n d   o ve r a l l 
a c h i e ve m e nt   o f   t h e   o b j e c t i ve s   we re   u n j u s -
t i f i a b l e   a n d   t h e   re q u e s t   w a s   n o t   a cce p te d 
b y   t h e   Co m m i s s i o n .   A l t h o u g h   t h e   p r o j e c t 
e n d e d   w i t h o u t   t h e   m a i n   o b j e c t i ve s   b e i n g 
r e a l i s e d ,   t h e   p a r t n e r   d i d   m a n a g e   t o   p r o -
c u re   t h e   p l a n n e d   e q u i p m e nt   a n d   f u r n i t u re 
f o r   t h e   o f f i c e s   a n d   r e s i d e n c e s   w h i c h   a r e 
n o w   s a f e l y   s t o r e d   i n   a n t i c i p a t i o n   o f   t h e 
c o m p l e t i o n   o f   t h e   w o r k s   i n   p h a s e   I I   ( c u r -
rently  under  procurement).

Proje c t  for  whic h th e im pac t  i s  u ncl ea r
In tern ation al  Reconstruc tion  Fund  Fa cilit y 
f or Iraq
S e t t i n g   s p e c i f i c   a n d   q u a n t i f i a b l e   i n d i c a -
t o r s   a n d   b a s e l i n e s   i n   g e n e r a l   c o n t r i b u -
t i o n s   t o   M u l t i - D o n o r   Tr u s t   Fu n d s   c a n   b e 
u n f e a s i b l e   a n d   c o u n t e r p r o d u c t i v e ,   a s 
c o n t r i b u t i o n s   c a n n o t   b e   e a r m a r k e d   f o r 
s p e c i f i c   p r o j e c t s .   I n   t h e   c a s e   o f   t h e   I r a q 
Tr u s t   Fu n d ,   E U   c o n t r i b u t i o n s   h a d   g e n e r i c 
o b j e c t i v e s ,   s i n c e   t h e i r   u l t i m a t e   p u r p o s e 
w a s   t h e   o v e r a l l   i m p r o v e m e n t   o f   t h e   l i v -
i n g   c o n d i t i o n s   o f   t h e   p o p u l a t i o n .   I n d i c a -
tors and baselines can and should be set at 
projec t level, once the projec ts are submit-
ted for approval. The Commission, through 
i t s   p a r t i c i p a t i o n   i n   t h e   I T F   S t e e r i n g   C o m -
m i t t e e   w h e r e   p r o j e c t s   a r e   a p p r o v e d ,   h a s 
been check ing the inclusion of measurable 
objec tives  at proj ec t level.

T h e   A f g h a n   N a t i o n a l   Po l i c e   u n d o u b t e d l y 
f a c e s   s e r i o u s   o n g o i n g   p ro b l e m s   w i t h   c o r-
r u p t i o n   a n d   l a c k   o f   c a p a c i t y .   H o w e v e r, 
t h e s e   p r o b l e m s   a r e   b e i n g   c o u n t e r e d 
t h r o u g h   a   c o m p r e h e n s i v e   a p p r o a c h   t o 
p o l i c e   r e f o r m ,   w h i c h   n e e d s   t o   f o c u s   o n 
i n s t i t u t i o n a l   r e f o r m   a n d   p r o p e r   c i v i l i a n 
p o l i ce   t ra i n i n g.   LOT FA   i s   j u s t   o n e   ( a l b e i t   a 
ver y impor tant) of the many facets in over-
all police refo r m.

29.
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 e   n e e d   t o 
improve projec t design, but considers that 
m o n i t o r i n g   i s   a d e q u a t e   i n   g e n e r a l   i n   t h e 
contex t of co nfl ic t-affec ted  co u nt r i es.

B ox 	2
Proje c ts which  ha ve n ot a c hieve d   the 
intende d  r e sults
M ine cl ea rance in  Afgha ni sta n
R e g a r d i n g   t h e   p r o j e c t  ‘ M i n e   c l e a r a n c e   i n 
A f g h a n i s t a n ’,   i t   i s   t r u e   t h a t   t h e   p r o j e c t 
p ro p o s a l   e r ro n e o u s l y   s t a t e d   t h a t   2 5   m a n -
u a l   c l e a r a n c e   t e a m s   c o u l d   c l e a r   a   t o t a l 
o f   2 7   m i l l i o n   m 2  o f   c o n t a m i n a t e d   l a n d , 
i n c l u d i n g   1 , 4   m i l l i o n   m 2  o f   m i n e f i e l d   a n d 
25,7 million m 2 of battlefield, over a three -
m o nt h   p e r i o d.  Th e   f i n a l   re p o r t   s t ate d   t h at 
t h e   c o n t r i b u t i o n   a g r e e m e n t   s h o u l d   h a v e 
read that 25 manual clearance teams could 
h ave   c l e a re d   e i t h e r   1 , 4   m i l l i o n   m 2  o f   m i n e -
field or 25,7 million m 2 of battlefield based 
o n   a v e r a g e   p r o d u c t i v i t y   r a t e s .   B e s i d e s , 
t h e   n u m b e r   o f   d e v i ce s   re m ove d   wa s   m u c h 
h i g h e r   t h a n   o r i g i n a l l y   p l a n n e d   ( 7 4   8 9 3 
d e v i c e s   r e m o v e d   r a t h e r   t h a n   6 4   8 0 0   i n i -
tially planned) .

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

30.
R e s p e c t   o f   p ro j e c t s’  i n i t i a l   t i m e   f r a m e s   i n 
c o n f l i c t - a f f e c t e d   c o u n t r i e s   i s   d e p e n d e n t 
o n   t h e   s i t u a t i o n   i n   a   f r a g i l e   p o l i t i c a l   c o n -
t e x t .   I n   m o s t   o f   t h e   c o n t r i b u t i o n   a g r e e -
m e n t s   w h e r e   i m p l e m e n t a t i o n   p e r i o d s 
w e r e   e x t e n d e d ,   t h e   C o m m i s s i o n   a n d   t h e 
U N   p a r t n e r s   w e r e   c o n s t r a i n e d   b y   o u t s i d e 
e l e m e n t s   l i k e   g o v e r n m e n t   d e c i s i o n s   o r 
t h e   d e t e r i o r a t i o n   o f   t h e   s e c u r i t y   s i t u a -
t i o n .   F l e x i b i l i t y   i n   t h e s e   e n v i r o n m e n t s   i s 
t h e r e fo r e   n e e d e d   a n d   i s   s e c u r e d   t h r o u g h 
no cost ex tension amendments to the con -
t r a c t ,   w i t h o u t   n e c e s s a r i l y   a f f e c t i n g   t h e 
overall outco me.

30.	(b)
N o   c o s t   e x t e n s i o n   o f   c o n t r i b u t i o n   a g r e e -
ments may result in a redistr ibution of cer -
t a i n   c o s t s   t o   t h e   d e t r i m e n t   o f   o t h e r s   b u t 
s u c h   a s p e c t s   a r e   p a r t   o f   t h e   r i s k s   a s s o c i -
ated with operating in these environments. 
H o w e v e r,   d u r i n g   n e g o t i a t i o n s   o f   n o   c o s t 
ex tension requests, the Commission makes 
e ve r y   e f fo r t   t o   e n s u re   t h a t   a ny   a d d i t i o n a l 
s t a f f   co s t s   re s u l t i n g   f ro m   s u c h   e x te n s i o n s 
a r e   k e p t   t o   a   m i n i m u m   s o   a s   n o t   t o   j e o p -
ardise t he su cces s  of  t he p rojec t. 

44

REPLY OF THE 
COMMISSION

3 0.	(c )
The lack of confidence of the par ties arose 
a s   a   r e s u l t   o f   t h e   f a i l u r e   o f   t h e   p r o j e c t   a s 
w e l l   a s   b e c a u s e   o f   d e l a y s   i n   i m p l e m e n t a -
t i o n .  Th e   Co m m i s s i o n   h a s   n ow   re ce i ve d   a l l 
repor ts and is in discussion with the UN to 
establish the amount of funds to be recov-
e r e d .   W h i l e   i t   i s   r e g r e t t a b l e   t h a t   t h e r e 
w e r e   f a i l u r e s ,   t h e   l e s s o n s   l e a r n t   a r e   v e r y 
useful for future wor k  in  S udan.

3 1.
D u e   c o n s i d e r a t i o n   w a s   g i v e n   t o   d i f f i c u l t 
c i r c u m s t a n c e s   b u t   p r o j e c t s   w e r e   c o n -
s t r a i n e d   b y   o u t s i d e   e l e m e n t s   b e y o n d   t h e 
co nt ro l   o f   t h e   p a r t n e r s   t h at   i m p l i e d   a d a p -
t at i o n   a n d   t h e re fo re   t h e   i n i t i a l   i m p l e m e n-
t at i o n   p e r i o d   h a d   to   b e   ex te n d e d   t h ro u g h 
a   n o   c o s t   e x t e n s i o n   a m e n d m e n t   t o   t h e 
contrac t (s ee reply to paragraph  3 0 ).

3 2.
Wh e re   ex te n s i o n s   h ave   o cc u r re d   t h e re   a re 
v a l i d   r e a s o n s .   F o r   e x a m p l e ,   e x t e n s i o n s 
have taken place to continue a programme 
or for  secur it y or politic al reas on s.

B ox	 3	
Proje c ts whi ch  a re l i kel y to b e  s usta i ne d
Supp or t to th e  fif t h  p o pula tion  ce n s us, 
Sudan
Th e   Co m m i s s i o n   a gre e s   w i t h   t h e   o b s e r v a -
t i o n   o f   t h e   Co u r t   a n d   c a n   c o n f i r m   t h a t   t o 
d ate,   t h e   re s u l t s   o f   t h e   p ro j e c t  ‘ S u p p o r t   to 
t h e   f i f t h   p o p u l at i o n   ce n s u s’,   S u d a n   c a n   b e 
cons idered as sust ain able.

E nh an cing  the  capacit y of  K h ar toum  State 
in  th e  deli ve r y of  vo cation al  train i ng 
se r vices, Sudan
Four training centres are operational since 
S e p t e m b e r   2 0 1 0   a n d   t h e   s t r o n g   c o m m i t -
ment of  the ben eficiar y  prevails.

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Proje c ts with weak n esses  in  ter m s   of 
susta inab ilit y
Law an d O rder  Trust  Fun d,  Afg ha ni s ta n
O n e   o f   t h e   o u t p u t s   f o r   t h e   n e x t   p h a s e 
f o r   LOT FA   c o v e r i n g   t h e   p e r i o d   1   J a n u a r y 
2011  to  31  M arc h  20 13   is  ‘G over nm ent  and 
s t a t e   i n s t i t u t i o n s   re s p o n s i b l e   fo r   s e c u r i t y 
and the maintenance of the rule of law are 
b e t t e r   e m p o w e r e d ,   e n s u r i n g   l o n g - t e r m 
s u s t a i n a b i l i t y ’.   D i s c u s s i o n   a n d   d i a l o g u e 
w i t h   g ove r n m e nt   o n   t h e   f i s c a l   s u s t a i n a b i l -
i t y   n e e d s   t o   i m p r o v e .   A t   t h e   s a m e   t i m e , 
t h e re   i s   a l s o   a n   u n d e r s t a n d i n g   t h a t   d o n o r 
f u n d i n g   w i l l   c o n t i n u e   t o   b e   r e q u i r e d   a t 
l e a s t   i n   t h e   m e d i u m   t e r m ,   i n   v i e w   o f   t h e 
g r o w i n g   p o l i c e   fo r c e   o v e r   t h e   n e x t   y e a r s , 
a n d   fo r   s e c u r i t y   to   b e   m a i nt a i n e d   t h ro u g h 
p r o f e s s i o n a l   a n d   p r o g r e s s i v e   f i n a n c i a l l y 
sustainab le  secu r it y ins titu tions.

41.
Co m m i s s i o n   s t a f f   a re   a s k e d   to   e n s u re   t h at 
t h e y   u n d e r s t a n d   t h e   h e a d i n g s   a n d   i t e m s 
o f   t h e   b u d g e t ,   t h e i r   co nte nt   a n d   p u r p o s e. 
W h e r e   t h e   l e v e l   o f   d e t a i l   i s   i n s u f f i c i e n t , 
staff are expec ted to seek fur ther infor ma-
tion and document the results of their dis-
cussions in t he fil e. 

S t a f f   re ce i ve d   f u r t h e r   i n s t r u c t i o n s   i n   J u n e 
2 0 0 9   r e q u i r i n g   t h e m   t o   t a k e   a c c o u n t   o f 
alter native s and cos t- effec tiven e s s   iss ues.

I t   s h o u l d   n e v e r t h e l e s s   b e   n o t e d   t h a t   t h e 
S t a n d a r d   C o n t r i b u t i o n   A g r e e m e n t   d o e s 
n o t   i m p o s e   a   b u d g e t   t e m p l a t e   a n d   h e n c e 
i nte r n at i o n a l   o rg a n i s at i o n s   a re   f re e   to   u s e 
t h e i r   ow n   fo r m at,   s ave   fo r   c a l l   fo r   p ro p o s -
als.

4545

REPLY OF THE 
COMMISSION

I n   f a c t ,   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   a r e 
encouraged to use their own budget struc-
tures in line with their accounting systems, 
w h i c h   a l l o w s   f o r   m o r e   r o b u s t   f i n a n c i a l 
repor t ing an d a cle arer  aud it  trai l.

4 2.
T h e   i n s t r u c t i o n s   r e fe r r e d   t o   i n   p a r a g r a p h 
4 1   a b o ve   re q u i re   s t a f f   t o   g a i n   a   c o m p l e t e 
u n d e r s t a n d i n g   o f   t h e   b u d g e t ,   t o   t a k e 
a cco u nt   o f   a l te r n at i ve s   a n d   co s t   e f fe c t i ve -
n e s s   i s s u e s   a n d   t o   d o c u m e n t   t h e i r   d e l i b -
erat ion s.

4 3.
C o s t   c o m p a r i s o n s   a r e   d i f f i c u l t   i n   v a r i o u s 
c o u n t r i e s,   a n d   a re   e ve n   m o re   c h a l l e n g i n g 
i n   a   c o n f l i c t - a f f e c t e d   e n v i r o n m e n t .   C o s t 
c ate g o r i e s   m ay   va r y   s i gn i f i c a nt l y   b e t we e n 
the regions of one single countr y and over 
time. 

T h e   C o m m i s s i o n   c o n t i n u a l l y   s e e k s   t o 
e n s u re   s o u n d   f i n a n c i a l   m a n a g e m e n t   e ve n 
i n   d i f f i c u l t   e nv i ro n m e n t s,   i n   l i n e   w i t h   t h e 
Fi n a n c i a l   R e g u l at i o n .   N e ve r t h e l e s s,   i t   i s   to 
b e   e x p e c t e d   t h a t   c o s t s   m a y   b e   h i g h e r   i n 
s u c h   e n v i r o n m e n t s .   T h i s   w i l l   b e   t h e   c a s e 
for all don or s.

4 4.
T h e   C o m m i s s i o n   d o e s   n o t   c o n s i d e r   t h a t 
t h e   c o s t s   a r e   n e c e s s a r i l y   h i g h   i n   r e l a t i o n 
t o   w h a t   c a n   r e a s o n a b l y   b e   e x p e c t e d   i n 
conf lic t- affec ted  countr ies.

4 5.	(a)
I t  is  impor t ant  to  dist inguish   be t wee n   t wo 
p o s s i b l e   s c e n a r i o s   w h i c h   a r e   s u b j e c t   t o 
t w o   d i f f e r e n t   r e g i m e s ,   a s   p r o v i d e d   f o r   i n 
Ar t icles   1 ,  1 0 an d 1 4  of th e G ene ral  Co nd i -
t i o n s   o f   t h e   St a n d a rd   Co nt r i b u t i o n   Agre e -
ment, whic h applie s Comm ission -wid e. 

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

46

REPLY OF THE 
COMMISSION

Re duc ti on  of  the  scop e
M i ne  cle arance  i n  Afgh an ista n
T h e   r e d u c t i o n   o f   t h e   i m p l e m e n t a t i o n 
p e r i o d   o f   t h e   p r o j e c t  ‘ M i n e   c l e a r a n c e   i n 
A f g h a n i s t a n’  d i d   n o t   n e c e s s a r i l y   l e a d   t o 
a   d e c r e a s e   i n   c o s t s   fo r   t h e   fo l l o w i n g   r e a -
son s:

T h e   p o l i c y   d i a l o g u e   a n d   w o r k   c a r r i e d   o u t 
by   t h e   U N   i n   m e e t i n g   i t s   o b j e c t i ve s,   w h i c h 
are by far  the  m os t impor tant  is s ue s;

The  fa c t  th at  t he  ac tual  num ber   of   d ev ice s 
removed exce eded the  plan ned  am ount; 

F u r t h e r m o r e   a n d   a s   m e n t i o n e d   u n d e r 
B ox 2 above, there was an er ror in the con-
t r i b u t i o n   a gre e m e nt,   w h i c h   wa s   co r re c te d 
in  the  final repor t. 

In teri m  disarmam en t  demobilisa ti on  an d 
re integratio n  pro gram me  ( ID DRP)	
T h e   s c o p e   o f   w o r k   w a s   i n d e e d   r e d u c e d . 
H o w e v e r ,   t h e   E U   c o n t r i b u t i o n   w a s 
e x p re s s e d   i n   te r m s   o f   a   m a x i m u m   a m o u n t 
o f   1 2   m i l l i o n   e u r o   a n d   n o t   i n   t e r m s   o f   a 
p e rce nt a g e,   re f l e c t i n g   t h e   co m m i t m e nt   o f 
t h e   Co m m i s s i o n   to   t h i s   p ro j e c t   w h i c h   w a s 
c o n s i d e r e d   t o   b e   o f   c r u c i a l   i m p o r t a n c e 
f o r   t h e   c o m p r e h e n s i v e   p e a c e   a g r e e m e n t 
i m p l e m e n t a t i o n   a n d   o v e r a l l   s e c u r i t y   a n d 
p e a c e   i n   S u d a n .   A s   a   s u r p l u s   re m a i n s,   t h e 
Co m m i s s i o n   i s   d i s c u s s i n g   w i t h   t h e   U N   t h e 
a m o u n t   t o   b e   r e c o v e r e d   a n d   a   r e c o v e r y 
order  will be issued in  due cour s e.

W h e r e   t h e   U N   c h o o s e s   t o   i m p l e m e n t   t h e 
a c t i o n   w i t h   a n   i m p l e m e n t i n g   p a r t n e r,   t h e 
a m o u n t   t h e   U N   a n d   t h e   i m p l e m e n t i n g 
p a r t n e r   t o g e t h e r   c l a i m   a s   i n d i r e c t   c o s t s 
may under no circumstances exceed 7 % of 
th e direc t  eligib l e cos t s. 

I f,   h o w e v e r,   t h e   a c t i o n   i s   s u b c o n t r a c t e d , 
i n c l u d i n g   to   a n o t h e r   U N   o rg a n i s at i o n ,   a ny 
costs related to administrative expenditure 
will appear as par t of the pr ice of this con-
t r a c t   c h a r g e d   t o   t h e   c o n t r a c t i n g   a u t h o r -
it y. Whatever  o p tion is c hos en, Ar t i cle 5  o f 
the FAFA clear ly states that it must be cost 
e f fe c t i v e   a n d   m a y   n o t   r e s u l t   i n   i n c r e a s e d 
cost s.

B ox 	4	
Indire c t co s ts
Capacit y  buil di ng for  t he new 
admin istra tio n  of S outher n  Su dan
A s   m e n t i o n e d   b y   t h e   C o u r t ,   t h e   f i n a n c i a l 
m a n a g e m e n t   o f   t h e   a c t i o n   w a s   s u b c o n -
t r a c t e d   t o   a   p r i v a t e   c o m p a n y   t h r o u g h   a 
s e r v i c e   c o n t r a c t .   C o s t s   r e l a t e d   t o   a d m i n -
i s t r a t i v e   e x p e n d i t u r e   a r e   t h e r e f o r e   p a r t 
o f   t h e   p r i c e   o f   t h e   c o n t r a c t   a n d   n o t   p a r t 
o f   t h e   i n d i r e c t   c o s t s   f o r   w h i c h   t h e   FA FA 
fo re s e e s   a   m a x i m u m   7   % .   I n   t h i s   p a r t i c u l a r 
c a s e   t h e   U N   o r g a n i s a t i o n   w i l l   re c e i ve   3   % 
of t he direc t  cos t s.

Sudan pro duc t ive capac it y recover y 
pro gramm e ( SPC RP)
T h e   p r o j e c t   d i d   p a y   a   m a n a g e m e n t   f e e 
t o   a n o t h e r   U N   o r g a n i s a t i o n   fo r   t h e   o f f i c e 
c o n s t r u c t i o n   a c t i v i t i e s .   H o w e v e r,   a c c o r d -
i n g   t o   t h e   d e s c r i p t i o n   o f   t h e   a c t i o n   ( S u b 
An n ex   1 . 2   to   t h e   co nt r i b u t i o n   a gre e m e nt ) , 
t h e   U N   o rg a n i s at i o n   i n   q u e s t i o n   i s   co n s i d -
e re d   a s   a   s u b co n t ra c to r   a n d   t h e re fo re   t h e 
m a n a g e m e n t   fe e   s h o u l d   b e   c o n s i d e re d   a s 
p a r t   o f   t h e   p r i c e   o f   i t s   s e r v i c e   a n d   n o t   a s 
a d d i t i o n a l   i n d i r e c t   c o s t s ,   j u s t   a s   i t   h a p -
p e n s   fo r   a ny   s e r v i c e   c o n t r a c t   s i g n e d   w i t h 
pr ivate comp anies.

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4 8.
Th e   Co m m i s s i o n   a c k n ow l e d g e s   t h e   i m p o r -
t a n ce   o f   p ro j e c t   d e s i gn   b u t   co n s i d e r s   t h at 
o n l y   t w o   o f   t h e   1 8   c a s e s   h a d   w e a k n e s s e s 
t h a t   c o u l d   d i r e c t l y   i n f l u e n c e   t h e   p r o j e c t 
results.

T h e   C o m m i s s i o n   h a s   t a k e n   m e a s u r e s , 
t h r o u g h   t h e   u p d a t e   o f   t h e   r e p o r t i n g 
g u i d e l i n e s ,   t o   i m p r o v e   p r o j e c t   d e s i g n , 
w h i c h   i t   c o n s i d e r s   m e e t s   t h e   c o n c e r n s   o f 
th e Cour t.

I n the case of contr ibutions to M ulti-D onor 
Tr u s t   Fu n d s   o b j e c t i ve s   c a n   b e   g e n e r i c   b u t 
c l e a r   a n d   q u a n t i f i a b l e   o b j e c t i v e s   s h o u l d 
be set  at proj ec t level.

I n   c a s e s   o f   j o i nt   m a n a g e m e nt ,   t h e   p ro j e c t 
i s   o f te n   d e s i gn e d   j o i nt l y   —   t h u s   t h e   Co m -
m i s s i o n   a n d   t h e   U N   w i l l   h a ve   a   ve r y   c l e a r 
u n d e r s t a n d i n g   o f   t h e   o u t c o m e s   e x p e c t e d 
and how these should be assessed. I n addi -
t i o n ,   t h e   Co m m i s s i o n   h a s   a   r i g o ro u s   i nte r -
n al pe er review sys tem.

Recommendatio n	1
T h e   C o m m i s s i o n   a g r e e s   t h a t   c l e a r   a n d 
p r a c t i c a l   o b j e c t i v e s   s h o u l d   b e   s e t   f o r 
p r o j e c t s .   I t   h a s   t a k e n   m e a s u r e s ,   t h r o u g h 
t h e   u p d a t e   o f   t h e   r e p o r t i n g   g u i d e l i n e s , 
which  meet s t he concer ns of th e  Cour t.

Th e   re s p e c t   o f   p ro j e c t s’  i n i t i a l   t i m e   f ra m e s 
i n   c o n f l i c t - a f f e c t e d   c o u n t r i e s   i s   d e p e n d -
e n t   o n   t h e   s i t u a t i o n   i n   a   f r a g i l e   p o l i t i c a l 
co n te x t .   Fl e x i b i l i t y   i n   t h e s e   e nv i ro n m e n t s 
is therefore needed and is secured through 
no cost ex tension amendments to the con -
tr ibution agreement, without affec ting the 
overall outcome.

CONCLUSIONS	AND		
RECOMMENDATIONS

46.
T h e   C o u r t ’s   i n a b i l i t y   t o   v i s i t   t w o   o f   t h e 
s e l e c te d   co u nt r i e s   re f l e c t s   t h e   d i f f i c u l t i e s 
inherent  in wor k ing in s uc h envi ro nme nts. 

The Commission considers that it is able to 
m o n i t o r   p r o g r a m m e s   i n   c o n f l i c t - a f f l i c t e d 
c o u n t r i e s   b y   r e l y i n g   o n   r e p o r t s   p r o d u c e d 
b y   t h e   i m p l e m e n t i n g   p a r t n e r s .   R e p o r t i n g 
b y   i m p l e m e n t i n g   p a r t n e r s   i s   a   k e y   s o u rc e 
o f   i n fo r m at i o n   a n d,   i n   l i n e   w i t h   t h e   p r i n c i -
p l e s   o f   a i d   e f fe c t i ve n e s s   a n d   g o o d   d o n o r-
s h i p,   t h e   C o m m i s s i o n   i s   c o n f i d e n t   t h a t   i t 
c a n   re l y   o n   co m m o n   re p o r t s   p ro d u ce d   fo r 
donors  as  a whol e. 

Th e   Co m m i s s i o n   re co gn i s e d   t h at   t h e re   a re 
improvements to be made to repor ting and 
r e v i s e d   g u i d e l i n e s   h a v e   r e c e n t l y   ( D e c e m -
b e r   2 0 1 0 )   b e e n   a g r e e d   w i t h   t h e   U N   f o r 
implem entatio n on a tr ial  bas is.

47.
T h e   C o m m i s s i o n   t h a n k s   t h e   C o u r t   f o r 
r e c o g n i s i n g   t h a t   e v e n   i n   e x t r e m e l y   d i f f i -
c u l t   c i r c u m s t a n c e s   p r o j e c t s   i m p l e m e n t e d 
w i t h   t h e   U N   i n   co n f l i c t- a f fe c te d   co u n t r i e s 
a c h i e v e   g o o d   r e s u l t s   a n d   a r e   r e a s o n a b l y 
s u s t a i n a b l e .   T h e   C o m m i s s i o n   r e c o g n i s e s 
that improvements can be made to repor t-
i n g ,   b o t h   i n   t e r m s   o f   q u a l i t y   a n d   t i m -
i n g,   a n d   r e v i s e d   g u i d e l i n e s   h a v e   r e c e n t l y 
(D ecember  2010)   b een  agreed  w i t h  t he   U N 
fo r   i m p l e m e n t a t i o n   o n   a   t r i a l   b a s i s.  Th e s e 
g u i d e l i n e s   s t r e s s   t h e   i m p o r t a n c e   o f   g o o d 
p r o j e c t   d e s i g n   a n d   t h e   d e v e l o p m e n t   o f 
a p p ro p r i ate   o b j e c t i ve s   a n d   i n d i c ato r s   a n d 
clar ify the expec tations of the Commission 
on  what it expe c t s  repor ts to co nt a i n. 

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

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Whereas follow-up can always be improved, 
t h e   c o n t r o l   a n d   m o n i t o r i n g   s y s t e m s   o u t -
l i n e d   a b ove   ( s e e   p a ra gra p h   2 1 )   a re   a l re a d y 
q u i t e   c o m p r e h e n s i v e .   R e l e a s e   o f   i n t e r i m 
a n d   f i n a l   p a y m e n t s   i s   d e p e n d e n t   o n 
a p p rova l   by   t h e   Co m m i s s i o n   o f   t h e   re s p e c-
t i v e   r e p o r t s .   I n   a d d i t i o n ,   d e t a i l e d   f o l l o w -
u p   o n   a l l   p r o g r a m m e s   f i n a n c e d   b y   t h e 
Co m m i s s i o n   t a k e s   p l a ce   t h ro u g h   t h e   t w i ce 
y e a r l y   e x t e r n a l   a s s i s t a n c e   m a n a g e m e n t 
repor ts.

T h e   C o m m i s s i o n   a l r e a d y   i n c l u d e s   i n f o r -
m a t i o n   o n   l e s s o n s   l e a r n t   a t   t h e   p r o j e c t 
preparation stage. This infor mation is then 
translated into an ac tion fiche which for ms 
par t of the financing decision and contains 
a sec t ion ( 2.2 ) on ‘ less on s lear nt ’.

5 1.
T h e   Co m m i s s i o n   a g re e s   t h a t   l a c k   o f   i n fo r-
m a t i o n   h a m p e r e d   t h e   C o u r t ’s   a s s e s s m e n t 
o f   e f f i c i e n c y.   H o w e v e r,   a s   n o t e d   b y   t h e 
C o u r t   ( p a r a g r a p h   1 7 ) ,   i t s   a s s e s s m e n t   o f 
e f f i c i e n c y   wa s   a l s o   l i m i te d   by   t h e   i m p o s s i -
b i l i t y   to   co n d u c t   wo r k   o n   t h e   s p o t   fo r   t wo 
count r ies.

T h e   C o m m i s s i o n   f u r t h e r m o r e   n o t e s   t h a t 
i n s t r u c t i o n s   i s s u e d   i n   J u n e   2 0 0 9   a s k   s t a f f 
t o   p a y   a t t e n t i o n   t o   c o s t   e f f e c t i v e n e s s 
issues.

5 2.
T h e   C o m m i s s i o n   d o e s   n o t   c o n s i d e r   t h a t 
the costs are necessar ily high in relation to 
w h a t   c a n   r e a s o n a b l y   b e   e x p e c t e d   i n   c o n -
flic t-affec ted count r ies.

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   a r e   e n c o u r -
a g e d   t o   u s e   t h e   b u d g e t   s t r u c t u r e   n o r -
m a l l y   u s e d   i n   t h e i r   o w n   a c c o u n t i n g   s y s -
tems so as to include more robust financial 
r e p o r t i n g   a n d   a n   a u d i t   t r a i l   s h o w i n g   t h e 
l i n k   b e t we e n   t h e   f i n a n c i a l   re p o r t   a n d   t h e 
under lying accounting  m ethods. 

Co m m i s s i o n   s t a f f   a re   a s k e d   to   e n s u re   t h at 
t h e y   u n d e r s t a n d   t h e   h e a d i n g s   a n d   i t e m s 
o f   t h e   b u d g e t ,   t h e i r   co nte nt   a n d   p u r p o s e. 
W h e r e   t h e   l e v e l   o f   d e t a i l   i s   i n s u f f i c i e n t , 
staff are expec ted to seek fur ther infor ma-
tion and document the results of their dis-
cussions in t he fil e.

50.
Th e   Co m m i s s i o n   re co gn i s e s   t h at   i m p rove -
m e n t s   c a n   b e   m a d e   t o   r e p o r t i n g ,   b o t h   i n 
t e r m s   o f   q u a l i t y   a n d   t i m i n g ,   a n d   r e v i s e d 
g u i d e l i n e s   h ave   re ce nt l y   ( D e ce m b e r   2 0 1 0 ) 
b e e n   a gre e d   w i t h   t h e   U N   fo r   i m p l e m e n t a -
tion on  a tr ia l b asis. 

U n s a t i s f a c t o r y   r e p o r t i n g   i s   f o l l o w e d   u p 
w i t h   t h e   U N   by   p ro j e c t   m a n a g e r s   a n d   p ay-
m e n t   o f   i n s t a l m e n t s   a n d   t h e   f i n a l   b a l a n ce 
d u e   o n   a   p ro j e c t   i s   d e p e n d e n t   o n   a c c e p t -
a n c e   b y   t h e   a u t h o r i s i n g   o f f i c e r   o f   i n t e r i m 
and  final rep or ts.

Recomme ndat ion	2
T h e   r e v i s e d   r e p o r t i n g   g u i d e l i n e s   a g r e e d 
b e t w e e n   t h e   C o m m i s s i o n   a n d   t h e   U N 
a d d r e s s   t h e   q u e s t i o n   o f   r e p o r t i n g   d e l a y s 
and  also t he qu al it y of  rep o r t ing.

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Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

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Recomme ndat ion	3
T h e   C o m m i s s i o n   a g r e e s   w i t h   t h e   r e c o m -
m e n d a t i o n   o f   t h e   C o u r t   a n d   h a s   a l r e a d y 
ta ken  me asure s to  address  it.

I n   M a r c h   2 0 0 7 ,   t h e   i m p o r t a n c e   o f   c h e c k -
i n g   t h e   e l i g i b i l i t y   o f   c o s t s   p r i o r   t o   s i g n a -
ture of a contr ibution agreement and pr ior 
t o   m a k i n g   a   p a y m e n t   w a s   h i g h l i g h t e d   i n 
instru c tions to  staff. 

S t a f f   r e c e i v e d   f u r t h e r   i n s t r u c t i o n s   i n 
J u n e   2 0 0 9   r e q u i r i n g   t h e m   t o   r e c o r d   t h e i r 
a s s e s s m e n t ,   w h e n   i d e n t i f y i n g   p r o p o s -
a l s   f o r   f i n a n c i n g   t h r o u g h   t h e   U N ,   o f   t h e 
a d d e d   v a l u e   o f   t h i s   a p p r o a c h   a n d   t o   t a k e 
a cco u nt   o f   a l te r n at i ve s   a n d   co s t   e f fe c t i ve -
ness  issu es.

A l l   o f   t h e s e   m a t t e r s   s h o u l d   n o w   b e   d o c u -
mented and assessment of costs is not lim -
ited to qu estio ns  of eligib il it y.

W h e re a s   t h e   d e ve l o p m e n t   o f   b e n c h m a r k s 
fo r   s t a n d a r d   c o s t s   m a y   b e   d e s i r a b l e ,   c o s t 
co m p a r i s o n s   a re   d i f f i c u l t   i n   v a r i o u s   co u n -
t r i e s ,   a n d   a r e   e v e n   m o r e   c h a l l e n g i n g   i n   a 
c o n f l i c t - a f f e c t e d   e n v i r o n m e n t .   C o s t   c a t -
e g o r i e s   m a y   v a r y   s i g n i f i c a n t l y   b e t w e e n 
the regions of one single countr y and over 
time.

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

Special Report No 3/2011 — The efficiency and effectiveness of EU contributions channelled through United Nations Organisations in conflict-affected countries

European Court of Auditors

Special	Report	No	3/2011

The	efficiency	and	effectiveness	of	EU	contributions	channelled	through	United	Nations	organisations		

in	conflict-affected	coutries

Luxembourg: Publications Office of the European Union

2011 — 49 pp. — 21 × 29.7 cm

ISBN 978-92-9237-072-5

doi:10.2865/41651

How	to	obtain	EU	publications

Free	publications:

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on the Internet (http://ec.europa.eu) or by sending a fax to +352 2929-42758.

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(http://publications.europa.eu/others/agents/index_en.htm).

 
 
Q
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A
B
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1
0
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0
1
6
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E
N

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C

EUROPEAID  FUNDS  CHANNELLED  THROUGH  UNITED  NATIONS 

ORGANISATIONS  INCREASED  FROM  144  MILLION  EURO  IN  2001  TO 

935 MILLION EURO IN 2009. A HIGH PROPORTION OF THESE CONTRIBUTIONS 

WAS SPENT IN CONFLICT-AFFECTED COUNTRIES. 

IN THIS REPORT, THE COURT EXAMINES WHETHER CHANNELLING FUNDS 

THROUGH UNITED NATIONS ORGANISATIONS IS AN EFFECTIVE, EFFICIENT 

AND  SUSTAINABLE  WAY  OF  DELIVERING  AID  IN  CONFLICT-AFFECTED 

COUNTRIES. 

THE AUDIT CONCLUDES THAT WHILE SOME GOOD RESULTS WERE ACHIEVED 

IN VERY DIFFICULT CIRCUMSTANCES, MORE ATTENTION NEEDS TO BE PAID 

TO PROJECT DESIGN, OBTAINING SUFFICIENT INFORMATION ON PROJECTS 

AND THE ASSESSMENT OF EFFICIENCY.

EUROPEAN COURT OF AUDITORS