Since 1st January 2001, the geographic Directorates-General (DG External Relations and DG Development) are in charge of programming and strategy whilst EuropeAid Co-operation Office is responsible for the remainder of the project cycle (from identification of projects to ex-post evaluation). This reorganisation has led to a corresponding transfer of staff and responsibilities. An Interservice Agreement was signed in June 2001, which clarifies the roles and responsibilities of the three Directorates General most closely involved in the management of external assistance. The EuropeAid Co-operation Office operates under a Board of Directors composed of the five Relex Commissioners33. The Board meets at least once every quarter. The Board approves the Office Mission Statement, the annual working plan (the Management Plan 2003 of the EuropeAid Co-operation Office was approved in January 2003), the annual budget programming, and the annual activity report. Furthermore, it has specific responsibilities in the field of evaluation: it approves the annual evaluation programme, takes stock of evaluation results and formulates recommendations.
All managerial posts in the EuropeAid Co-operation Office have been filled, as have most other vacancies following a large-scale recruitment exercise in February 2001. During 2002, due to human turnover, 7 managerial posts have been filled and 215 officials were recruited.
The Commission took on responsibility for those tasks previously carried out by the 49 Technical Assistance Offices (TAOs), whose contracts were terminated in 2001 or were not renewed. This required the recruitment of 260 additional auxiliary staff to work in Headquarters and 70 individual experts to work in Delegations. Furthermore, the EuropeAid Co-operation Office was still benefiting in 2002 from the services of 3 Technical Assistance Offices, for the management of individual experts throughout the world and of European Customs Officers in the Balkans. In 2002, the decision was taken to dismantle these TAOs and to internalise the management, to comply with the new rules on outsourcing and in anticipation of the new Financial Regulation. Some 30 auxiliary staff were recruited in September and October 2002 to work in Headquarters on the preparation of the take over from the 3 TAOs in order to be fully operational in January 2003. This management is done locally with the support of the Delegations, which have been reinforced with 26 local agent posts as far as the management of individual experts is concerned. As from
33 Mr Patten (Chairman), Mr Nielson (Chief Executive Officer), Mr Verheugen, Mr Lamy and Mr Solbes Mira (Members of the Board)
1st January 2003, there are no more Technical Assistance Offices working for EuropeAid.
The profiles of the official and contractual staff recruited cover the whole range of expertise needed by headquarters and delegations to implement external aid in accordance with the objectives of quality and speedy delivery set by the Reform (development economists, sectoral experts, finance and contract professionals, support staff, etc.). A training package centred on programme management has been developed and implemented to improve the skills of current staff.
The EuropeAid Co-operation Office has developed a series of indicators aimed at measuring progress in implementing the principal elements of the reform programme: improved execution of the budget (for example, 75% of invoices paid within 60 days), reduction in old and dormant commitments, rationalisation of budget lines, deconcentration, etc. These indicators are used to compile a regular progress report on the management of the EuropeAid Co-operation Office, which is presented to the Board.
2.3.1. Budget and EDF implementation
Overall results of 2002 budget implementation are very satisfactory. Since the beginning of the year, €3877 million have been committed (compared with €3641 million in 2001) and €3327 million paid (an increase of €152 million compared with 2001).
With regard to the EDF, the results are in line with the latest forecasts, the level of commitments amounting to €2114 million and of payments to €1902 million.
The stock of opened commitments has been stabilised in absolute terms, at the level of €19,8 billion (- €40 million compared with 2001). Expressed in payment years, this stock remains stable at the level of 3,8 years, compared to 4,6 years at end 1999.
2.3.2. Simplification and harmonisation of contractual and financial procedures
In addition to these measures, the EuropeAid Co-operation Office has implemented simplified and harmonised contracting procedures (reduced in number from 46 to 8) through the production of the Practical Guide to EC external aid contract procedures. Standard documents have also been created, and should now be applied to all Community programmes. A new general framework has been adopted for the European Development Fund that is very similar to the one used for projects financed from EC funds. These measures have reduced the time needed to complete the tendering process and facilitated the implementation of projects. Significant progress has been made towards greater transparency. After an initial surge of interest, the EuropeAid Web site now consistently achieves around 1 million successful page requests per month. The site includes information about contracts and procedures for all the external aid programmes. A survey of those accessing these pages launched before the end of 2001 has shown a high level of satisfaction among users.
Furthermore, a framework agreement was concluded with the World Bank, and a revised framework agreement negotiated with the United Nations, in order to enhance the co-operation with these institutions.
The 16 May Communication also foresaw an harmonisation of budget lines, and these have now been reduced from 64 (in 2000) to 53 (in 2002). This effort has been pursued in 2002, and the Commission proposed in the PDB 2003 a further reduction to 49 budget lines. However, the Parliament did not accept all Commission proposals and also decided to create 4 new budget lines. Eventually, the number of lines to be managed by the Office will be slightly increased.
In 2002, the EuropeAid Co-operation Office has established a Finance Guide for the external actions financed from the General Budget of the EC and updated the User Guide to the financial procedures of the 7th and 8th EDF. Finally, the new Financial Regulation34 was adopted by the Council on the 25 June 2002 and came into application on 1 January 2003. Among other changes, the new provisions in the section on external actions introduce a "sunset clause" requiring that all contracts implementing a Financing Agreement, except those concerning audit and evaluation, are signed within three years from the date of adoption of the budgetary commitment.
2.3.3. Management systems : CRIS
During 2002, the EuropeAid Co-operation Office completed the integration of the numerous information systems used for the programmes financed via the budget into one single harmonised system – CRIS (Common Relex Information System). Therefore, as from January 2003, the management of all programmes financed via the budget is supported by one management system. CRIS is not just containing financial data – but also a wealth of non-financial information of relevance for the implementation and is therefore superior to the previous information systems used. It links up electronically Headquarters and Delegations and allows for on-line registration, communication and reporting of data. CRIS will significantly facilitate the Commission’s ability to provide on-time financial data to Council and Parliament. Data that will be fully DAC compatible. The transfer of data from the old systems into CRIS was not only technically complex but also very resource intensive because the quality of the historical data in many cases had to be verified, corrected and completed in view of the stricter requirements of CRIS. With this, one of the key initiatives of the reform of the external assistance has been successfully completed. Efforts will continue in 2003 to integrate also the European Development Fund in CRIS.