Presentation

Management-information ESF

by Martin de VriesCoordinator Planning & Control

September 19th 200611:30 – 12:15 h

Organisation Chart

General Manager of the Agency

Manager of Execution Manager of Conduct of Business

Internal ControlOperational Audit

Team Eindhoven

Team The Hague

Team Zwolle

Financial and General Department

Legal Department

Officemanagement

Personnel,Organisation &Communication

Organisation Chart

Manager of Conduct of Business

Financial and General Department

Legal Department OfficemanagementPersonnel,

Organisation &Communication

Planning & Control

Financial accounting

Information & Techonology

Tasks of Planning & Control• Planning:

1. making a tender (the next year) of every grant executed (including ESF) for each awarding authority (= policy maker)

2. making the budget of the agency SZW as a whole for the next year for the owner

• Control:3. reporting regularly about the quantitative and qualitative realisation of the grants executed 4. reporting regularly about the financial situation of the agency as a whole5. reporting to Parliament and the press about 3., when asked.

6. give the management of the agency advise on matters of planning & control

European Commision

Ministry of Social Affairs

Council of Ministers

European Parliament

Owner(SG)

Informing the Stakeholders of ESF-3

Dutch Parliament

Prior to each year

a. tenderb. budget

Realisation - ex post

d. month

c. monthe. Every 4 months

Minister of Social Affairs

Realisation – on demand

g. Questions of Parliament

f. Weekly – by exception

Awarding authority

(AM)AGENCY

Gen.Man.

P&C

c. month

h. 1-2 times p.year(budget realisation)

j. yearly: qualitative

Monitoring Committee

k. 3-4 x p.year

Dutch society:unions, employers,

communities (towns),etc.

l. Questions of society / press

i. Quarterly deviations (OLAF)

Informing the Stakeholders of ESF-3Planning – internal (within the Ministry):

a. Tender for the awarding authority – prior to each year:

products (# applications, end reports, handled)

x productprice (= labour for each product x integral cost of labour)

= estimated income for the agency SZW payable by the awarding authority

b. Budget of the agency SZW as a whole for the owner – prior to each year:

sum of all the grants executed by the agency SZW

- total cost of labour, housing, investments and overhead

= estimated result of the year for the agency SZW as a whole

Informing the Stakeholders of ESF-3Control – internal:

c. Information to the management of the agency – monthly:

realized income (for every grant executed) = realised # products x price

- realized costs (for the agency as a whole)

= realized result

expectation of income / costs / result at year-end

problems encountered with the execution of ESF-3

developments personnel: # employed, % sick-leave,

# hours worked (direct/indirect)

Informing the Stakeholders of ESF-3Control - internal:

d. Information to the awarding authority – monthly:

compensation payable = realised # products x price

expectation of compensation payable at year-end

# applications, end reports in stock to handle / handling time

problems encountered with the execution of ESF-3

realisation of the EC-budget for ESF per priority / measurement

expectation of realisation of the EC-budget at year-end

Informing the Stakeholders of ESF-3Control - internal:

e. Information to the owner – every 4 months:

realized income - realized costs = realized result

expectation of income / costs / result at year-end

developments personnel: # employed, % sick-leave, # hours

worked

Informing the Stakeholders of ESF-3Control – external: political

f. Information Council of Ministers – weekly:

management-information by exception

quantitative / qualitative information about ESF-projects

g. Informing Dutch Parliament - on demand

report of the Minister of Social Affairs

/ questions asked in Parliament

quantitative / qualitative information about ESF-projects

Informing the Stakeholders of ESF-3Control – external: European Commission

h. Declaration ESF-budget spent – 1-2 times a year:

on-line reporting system of the EC

N+2 declaration (see further)

i. Deviations end report > € 4.000 (individual projects) - each quarter

on-line system OLAF-bureau (anti-fraude)

j. Execution of ESF – year-end / Evaluation (midterm, final, ex-post)

development of ESF granted per priority / measurement

# people involved in ESF-project (male-female, age, origin, education)

effectiveness of the ESF granted to projects

Informing the Stakeholders of ESF-3Control – external: Dutch society

k. Monitoring Committee (representatives of EC + society) – 3-4 times a year:

ESF granted to projects per priority / measurement

developments of the execution of ESF-grants

l. Questions of the press / organisations within society - on demand

transparancy and publicity of governance

EC principles of declarations:

1. N+2 (declaration of year N, before 31th December N+2)

2. All declarations until the final one end 2008 are provisional

3. Possible 2 additional declarations every year

4. Budgets not used in a particular year will be lost

5. Real costs

6. Costs must be paid

N+2 Declaration ESF-budget spent

Mismatch budgets - realisation

€ 0,0

€ 100,0

€ 200,0

€ 300,0

€ 400,0

€ 500,0

€ 600,0

2000 2001 2002 2003 2004 2005 2006

realisation € mln(N+2)

budgets € mln

N+2 Declaration ESF-budget spent

Dutch priorities and budgets (at the start of ESF-3 2000-2006): € mln

% 2000 2001 2002 2003 2004 2005 2006 TotaalP1 Employing the unemployed and handicappedESF 26,9 88,4 90,2 92,0 93,9 86,8 88,5 90,3 630,2

P2 Employability of the working forceESF 50,5 110,6 112,8 115,0 117,3 108,5 110,7 112,9 787,7

P3 Life long learningESF 19,1 39,3 40,1 40,9 41,7 38,6 39,3 40,1 280,1

P4 Technical AssistanceESF 3,4 7,4 7,5 7,7 7,8 7,2 7,4 7,5 52,5

TotalESF 100,0 245,7 250,6 255,6 260,7 241,1 245,9 250,8 1.750,5

N+2 Declaration ESF-budget spent

Declarations Date / year Declaration (aggregate)

€ mln

Reali-sation € mln

Loss of budget € mln

7% Advance 2000 en 2001 € 122,5

1e Additional februari 2002 € 0,6

2e N+2 2000 december 2002 € 75,2 € 198,3 € 47,9

3e N+2 2001 december 2003 € 158,6 € 83,4 € 167,2

4e Additional oktober 2004 € 202,0

5e N+2 2002 december 2004 € 335,1 € 176,5 € 79,1

6e Additional Oktober 2005 € 394,3

7e N+2 2003 December 2005 € 606,2 € 271,1 -

€ 294,1

Dutch declarations in the years 2001 – 2006:

N+2 Declaration ESF-budget spent

N+2 and the various stages during the project life-cycle:

A. Subsidy determined (certification by certified auditor):- Taken into the N+2 declaration, without additional activities.

B. Project ended, final report in progress by Agentschap:- For N+2 final reports should be blocked in the ESF-system (100%).- Blocking these final reports responsibility of the Manager Operations.- Indications the subsidy will not be determined as requested in the final report ? - consultant performs brief review of the final report (cert./IC).- if necessary: manual correction of expected on the final reports.

C. Projectactivities still taking place:- year reports (results and costs of the project in the previous year).- represent real costs already paid; no certification by certified accountant.- regular activities consultants: brief review and blocking report in the ESF-system.

Demonstration ESF-system (ESF Beheer)

Using the ESF-system for reporting purposes:

system based on individual projects: insufficient reporting tool - e.g. monthly developments # products - e.g. # male / female participants in ESF-projects

invalid input in the system: insufficient input-controls

information not available in the system: insufficient data-model - e.g. categories applicants

Demonstration ESF-system (ESF Beheer)

Tools in the ESF-system regarding N+2 declaration:

Report N+2 declaration Brussel - reviewed - blocked in system

Report N+2 declaration Brussel - not reviewed - not blocked yet

Report differences - project level: what’s the position reviewed - what can be gained by reviewing

Demonstration ESF-system (ESF Beheer)

Lessons that can be learned from ESF Beheer:

system should contain a flexible reporting tool

system should contain sufficient input-controls

before engineering the system a clear data-model is essential