Delegated Cooperation - 6 pillar assessment

Report
DELEGATED COOPERATION
"6-pillar assessment"
(20 November 2012)
1
Acronym
ADA
ADETEF
AECID
AFD
AusAID
BC
BTC CTB
DANIDA
DBSA
DEG
GIZ
DFID
FEI
FI MoFA
FIIAPP
IPAD
IT MoFA
KfW
Lux-Dev
NL MoFA
SIDA
SIMEST
SONA/USONA
Name of the Organization
Austrian Development Agency
Assistance au Développement des Échanges des Technologies Économiques et Financières
Agencia Espanola de Cooperation Internacional al Desarrollo
Agence Française de Dévelopement
Australian Development Agency
British Council
Cooperation Technique Belge
Danish Ministry of Foreign Affairs
Development Bank of Southern Africa
Deutsche Investitions- und Entwicklungsgesellschaft mbH
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
UK Department for International Development
France Expertise International
Ministry of Foreign Affairs of Finland
Fundacion Internationaly para Iberoamerica de Administraciony Politicas Publicas
Instituto Portugues de Apoio ao Desenvolvimento
Ministry of Foreign Affairs of ITALY
Kreditanstalt fur Wiederaufbau
Lux-Development SA
NL Ministry of Foreign Affairs
Swedish International Development Cooperation Agency
Societa Italiana per le Imprese al'Estero
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 standards
procurement = principles of the Financial Regulation
No major changes are expected for Member States bodies

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