DELEGATED COOPERATION State of Play (20 November 2012) 1

Summary 1. Main principles & General definitions 2. Delegation Agreements and Transfer Agreements by year 3. Delegation Agreements and Transfer Agreements by region/theme 4. Delegation Agreements and Transfer Agreements by agency 5. Some Lessons learnt 2

1. Main principles & General definitions Aid effectiveness: Paris Declaration (2005), Accra (2008), Busan (2011) Agenda for Change (2012) Code of Conduct on Division of Labour (2007) Principles: Ownership Harmonisation Alignment Drivers: Use of country systems and Division of Labour 3

→ DELEGATION AGREEMENT Management of funds entrusted by the European Commission to delegated body from Member States (or other third donor country) under the indirect centralised management mode → TRANSFER AGREEMENT Management of funds entrusted to the European Commission by EU Member States, International Organisations and other public donors These two types of agreement constitute delegated cooperation 4

Management mode overview 5

"6-pillar" compliance 1.Expression of interest by the donor body 2.Initial screening by EuropeAid services 3.External audit to assess the "existence and proper operation" on the following “6 pillars”: a. transparent procurement and grant-award procedures; b. an effective internal control system for management of operations; c. accounting system that enables the correct use of EU funds d. an independent external audit; e. public access to information at the level provided for in Community regulations; f. adequate annual ex post publication of beneficiaries of funds deriving from the budget 6

2. Delegation Agreements (DA) & Transfer Agreements (TA) by year *As at 20/11/2012 7

3. DA/TA by region/theme 8

4.1 Delegation Agreements by entity (EU) 9 *Figures for DA/TA by entity may differ slightly from those collated by MS

4.2 Transfer Agreements by entity (EU) 10 *Figures for DA/TA by entity may differ slightly from those collated by MS

4.3 Transfer Agreements by entity (non- EU) 11

5. Some lessons learnt 1. Fragmentation DA average amount: 5.10 M€ No. of DA below 3M€ : 28/71 Range: TA average amount: 4.87 M€ Range: 12

2. Co-financing Delegation Agreements No. of DA signed with no co-financing: 24/71 Transfer Agreements 100% of TA involved co-financing 13

3. Balance: Delegation Agreements/Transfer Agreements 71 DA vs. 31 TA 362 M€ DA / 151 M€ TA Ratio= €2.40 delegated per €1 received 14