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NGO financing from the EU budget - performance and transparency
European Parliament Committee on Budgetary Control 15 November 2010
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Objectives and methodFindingsConclusions and recommendations
Content
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Critical assessment of effectiveness and efficiency of EC-NGO cooperationData on NGO financing and Register of Interest Representatives
Objectives
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Stakeholder consultations: 41 EC, Member State and NGO representativesSurvey: 120 NGOs from 21 Member StatesCase studies: EAC, ENV, ECHO, WB, NL, ES
Method
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Findings - NGO fundingNGO financing in 2009 (€ million / %)
EuropeAid ENV ECHO EAC
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Findings - NGO fundingNumber of grants in 2009 (number / %)
EuropeAid ENV ECHO EAC
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Findings - EC framework
Organisation NGO definition
Non for profit Source
EC DG ECHO ✔ ✔Council Regulation (EC) 1257/96 of 20 June 1996 concerning humanitarian aid, article 7
EC DG EAC ✔ ✔Citizenship Programme 2007-2013 Programme Guide, page 53
EC DG ENV ✔ ✔
Regulation (EC) 614/2007 of the European Parliament and of the Council of 23 May 2007 concerning the Financial Instrument for the Environment (LIFE+), Annex 1 and http://ec.europa.eu/environment/ngos/index_en.htm
No apparent follow-up on the wider framework: ʻThe Commission and Non-Governmental Organisations: Building a Stronger Partnership, 2000ʼ
No common definition, however, EC NGO definitions emphasise non for profit nature:
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Findings - Data on NGO financingEC Service (DG) Publication of funding beneficiaries Differentiation of NGOs
ECHO ✔ ✔
EAC ✔ ✔
Enterprise and Industry ✔ no
Employment ✔ no
ENV ✔ ✔
EuropeAid ✔ noHealth and Consumers ✔ no
Justice and Home Affairs ✔ no
Research ✔ no
Information Society and Media ✔ no
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Findings - Data on NGO financing
The Financial Transparency System does not differentiate by type of beneficiary organisation / no differentiation of the non for profit nature of beneficiariesNo differentiation by type of funding (e.g. project specific versus operational)Limited visibility of funding data (parallel systems / access not always user friendly)
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Findings - Efficiency
positive experiencemajor difficultiesminor difficulties
NGO experience with EC grant contracts (survey to NGOs working with EAC, ECHO, ENV)
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Findings - Efficiency
Different application / selection mechanisms depending on the DGLimited flexibility during implementation threatens relevance of NGO activityReporting and control requirements are not proportional to grant size
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Findings - EffectivenessEAC ECHO ENV WB DMFA AECID
Self assessment
Interim progress reports ✔ ✔ ✔ ✔ ✔
Final progress reports ✔ ✔ ✔ ✔ ✔ ✔
External review of progress reports ✔ ✔
Independent evaluations
Commissioned by funder on an ad hoc
basis✔ ✔ ✔
Mandatory for all grantees ✔ ✔
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Findings - Register
RIR entries by Member State in September 2010
NGO think tankNGONGO similarOther categories
% of NGO entries of total RIR
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Reviewing the wider framework of EC-NGO cooperation:
EC to update its 2000 strategy paper EC to establish standard NGO definitionEC to harmonise design and operation of NGO funding programmesEC to consider funding limits to ensure NGO independence
Conclusions / recommendations
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Consider a wider use of programme funding:
Extend the use of programme funding (as opposed to project funding)Programme funding to be set in framework of rigorous application procedures, monitoring and evaluation and EC-NGO dialogue
Conclusions / recommendations
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EC-NGO dialogue via NGO umbrella organisations:
Intensify EC-NGO policy dialogue via NGO umbrella organisations
Conclusions / recommendations
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Efficiency: EC to systematically evaluate the efficiency of its cooperation with NGOsStreamline application, implementation and control procedures between different DGsReporting and control requirements to be made proportional to grant size
Conclusions / recommendations
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Systematic evaluation of effectiveness: Reduce reliance on NGO self-assessmentExternal evaluation of the effectiveness of EC-NGO cooperation
Conclusions / recommendations
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Publication of NGO funding: EC to harmonise the presentation of funding information and enhance visibility Financial Transparency System to provide information by type of beneficiary / indicate non for profit nature / purpose of grant (project-specific versus operational) / type of contract
Conclusions / recommendations
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Strengthening and promoting the Register of Interest Representatives:
EC to define organisational categories (NGO definition)EC to introduce quality control of NGO entriesEC to promote RIR visibility via NGO umbrella organisations
Conclusions / recommendations
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