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DELEGATED COOPERATION

"6-pillar assessment"(20 November 2012)

Acronym  Name of the Organization ADA Austrian Development AgencyADETEF Assistance au Développement des Échanges des Technologies Économiques et FinancièresAECID Agencia Espanola de Cooperation Internacional al Desarrollo AFD Agence Française de DévelopementAusAID Australian Development AgencyBC British Council

BTC CTB Cooperation Technique BelgeDANIDA Danish Ministry of Foreign AffairsDBSA Development Bank of Southern AfricaDEG Deutsche Investitions- und Entwicklungsgesellschaft mbHGIZ  Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH DFID UK Department for International DevelopmentFEI France Expertise International

FI MoFA Ministry of Foreign Affairs of FinlandFIIAPP Fundacion Internationaly para Iberoamerica de Administraciony Politicas PublicasIPAD Instituto Portugues de Apoio ao DesenvolvimentoIT MoFA Ministry of Foreign Affairs of ITALYKfW Kreditanstalt fur WiederaufbauLux-Dev Lux-Development SANL MoFA NL Ministry of Foreign AffairsSIDA Swedish International Development Cooperation AgencySIMEST Societa Italiana per le Imprese al'Estero

SONA/USONA Stichting Ontwikkeling Nederlandse Antillen

Main steps of the 6-pillar assessment

1. Preliminary stage: request, management decision, initial screening

2. Assessment Process: external audit company, opening meeting, fieldwork (around 2 weeks), closing meeting (on main findings)

3. Assessment Report: report with recommendations subject to contradictory procedure, finalisation depending on the findings & recommendations

Process = 8 to 9 months BUT:depending on the importance of the issues addressed & the

time to implement the recommendations

Main difficulties

1. Major changes in the organisational structure or the internal procedures (procurement) => delays / impossibility to confirm compliance with standards

2. MAJOR CONCERN: cascading delegations (implementing partners)

– specific risks (dilution of responsibility / cost)

– delegation accepted under condition (assessment / controls)

– common issue in entities using implementing partners (insufficient

levels of control / difficulties for recovery unduly spent funds)

Legislation forbids delegation of tasks involving exercise of public authority to private law entities (other than those with

a public service mission)

New Financial Regulation

1. Change in management modes: indirect centralised (national body) + decentralised (beneficiary country) + joint (international organisation) = one category called INDIRECT management

2. Harmonization of pillars: 4 pillars (audit; internal control; accounting; procurement) instead of the current 6

3. Clarification of standards to be used:audit; internal control; accounting = international standardsprocurement = principles of the Financial Regulation

No major changes are expected for Member States bodies