annex 1: statement of the resources director · nov 2016) 93.012 eu climate action twitter number...

CLIMA_aar_2017_draft Page 61 of 98

ANNEXES

ANNEX 1: Statement of the Resources Director

I declare that in accordance with the Commission’s communication on clarification of the responsibilities of

the key actors in the domain of internal audit and internal control in the Commission38, I have reported my

advice and recommendations to the Director-General on the overall state of internal control in the DG.

I hereby certify that the information provided in Section 2 of the present AAR and in its annexes is, to the

best of my knowledge, accurate and complete.

Date: 26 March 2017

[SIGNED]

Yvon SLINGENBERG

38 Communication to the Commission: Clarification of the responsibilities of the key actors in the domain of internal audit

and internal control in the Commission; SEC(2003)59 of 21.01.2003.

Ref. Ares(2018)1991317 - 13/04/2018


ANNEX 2: REPORTING – HUMAN RESOURCES, BETTER REGULATION, INFORMATION MANAGEMENT AND EXTERNAL COMMUNICATION

This annex is the annex of section 2.2 "Other organisational management dimensions".

A. Human Resources

Objective: The DG deploys effectively its resources in support of the delivery of the Commission's priorities and core business, has a competent and engaged workforce, which is driven by an effective and gender-balanced management and which can deploy its full potential within supportive and healthy working conditions. Indicator 1 (mandatory – data to be provided by DG HR): Percentage of female representation in middle management Source of data: Target for female representation in management functions in the European Commission for the years 2015-2019 adopted by the Commission on 15 July 2015 – SEC(2015)336. This target was reviewed in the Commission Decision of 19th July 2017 (SEC(2017)359), whereby DG CLIMA was set a quantitative target of three first time appointments of female Heads of Unit

Baseline (2015)

Target (2020)

Latest known results (2017)

33% 45% 3 first time appointments achieved by 1/09/17 – 40%

Indicator 2 (mandatory – data to be provided by DG HR): Percentage of staff who feel that the Commission cares about their well-being

Source of data: Commission staff survey Baseline (2014)

Target Latest known results (2016)

45% Not to fall below baseline (as satisfaction with the Commission covers more than the activities of DG CLIMA)

45%

Indicator 3 (mandatory – data to be provided by DG HR): Staff engagement index Source of data: Commission staff survey Baseline (2014)

Target Latest known results (2016)

73% To improve participation rate in the staff survey and improve the % of satisfaction

71%

Main outputs in 2017

Description Indicator Target date Latest known results Development programmes for preparing women

2 programmes By end 2017 A corporate programme was launched by DG HR and in this context DG CLIMA chose


for management not to launch a separate programme. 1 candidate was proposed from the DG to participate in this as well as 1 Senior Manager designated as a mentor at the end of 2017. The programme will be implemented in 2018. Targeted individual coaching was also offered.

Rate of vacant posts

Vacancies on average less than 5% on annual basis

By end 2017 4.4%

Programmes to promote wellbeing and preventive actions in relation to health

List of programmes offered

By end 2017 Actions implemented in collaboration with AMC3 :

• Organisation of additional activities in the wellbeing room

• Promotion of DG participation in corporate initiatives ‘Velomai & Run for Climate’

• Managements sessions organised with DG HR – Role of the Manager in staff well-being

• Improvements to social area in the building

Action Plan in response to 2016 survey.

Actions implemented

Rolling programme for 2017/2018

Series of actions implemented:

Programme of Management Pills (short training sessions)

Improved internal communication, such as, weekly newsletter and info sessions for staff led by Senior Management.

Launch of new induction process for


staff Lunchtime

conferences Launch of an L&D

newsletter incorporating local learning activities on offer in the Beaulieu area and corporate ones.

B. Better Regulation

Objective: Prepare new policy initiatives and manage the EU's acquis in line with better regulation practices to ensure that EU policy objectives are achieved effectively and efficiently. Indicator 1: Percentage of Impact assessments submitted by DG CLIMA to the Regulatory Scrutiny Board that received a favourable opinion on first submission.

Baseline (2015)

Interim Milestone (2016)

Target (2020)


0% 50% 75% 100%

Indicator 2: Percentage of the DG's primary regulatory acquis covered by retrospective evaluation findings and Fitness Checks not older than five years. Baseline (2015)

Interim Milestone (2016)

Target (2020)


40% (CCS, ETS, CO2 and cars, CO2 and vans)

70% (ESD, FQD, Cars labelling)

80% of DG CLIMA's acquis at that time

70%

Main outputs in 2017 Description Indicator Target date Latest known

results Impact Assessment Post 2020 light vehicle CO2 Regulation(s) (2015/CLIMA/019)

Positive opinion with reservations 1st presentation Regulatory Scrutiny Board (RSB)

2017

Completed

Impact Assessment Heavy Duty Vehicles CO2 emissions monitoring system (2015/CLIMA/018)

Positive opinion 1st presentation Regulatory Scrutiny Board (RSB)

Q2 2017

Completed

Impact Assessment Positive opinion with Q1 2017 Completed


EU ETS aviation – follow-up to 2016 ICAO Assembly (2015/CLIMA/014)

reservations 1st presentation Regulatory Scrutiny Board (RSB)

Mid-term evaluation of the LIFE programme

Positive opinion 1st presentation Regulatory Scrutiny Board (RSB)

Q1 2017 Completed

Evaluation of Fuel Quality Directive 98/70/EC (2015/CLIMA/021)

It was not selected for assessment by the Regulatory Scrutiny Board of the Commission

2017 Completed

C. Information management

Objective: Information and knowledge in your DG is shared and reusable by other DGs. Important documents are registered, filed and retrievable.

Indicator 1: Percentage of registered documents that are not filed (ratio) Source of data: Hermes-Ares-Nomcom (HAN)34 statistics

Baseline

2014

Target Latest known results

(2017)

0.85% Maintain 0,32%

Indicator 2: Percentage of HAN files readable/accessible by all units in the DG Source of data: HAN statistics

Baseline

2014


(2017)*

95.26% Maintain 91,25%

Indicator 3: Percentage of HAN files shared with other DGs

Source of data: HAN statistics

Baseline

2014


(2017)

0.06% Improve (keeping in mind that some CLIMA files cannot be shared due to sensitivity/security reasons)

84,37%

CLIMA_aar_2017_draft 6 of 98

Main outputs in 2017:

Description Indicator Target Latest known results

In order to ensure a sound and efficient management of information, up-to-date information on document management is widely shared in the DGs, users are well trained

Monthly in-house training to newcomers.

Training to units on adaptation to technical development, awareness programme and educational package on information value, availability, use and automated processing.

4 Ares basics trainings for newcomers (mainly for new Administrators)

Several Ad-hoc coaching for new Secretaries and Administrators

4 AresLook training for all staff

4 Ares Search training for all Staff

2 Ares technical development to e-DMCs

4 General training on Filing and archiving

2 Training on information security to all staff

Several ad-hoc Ares basics and AresLook coaching sessions for new Secretaries and Administrators

4 AresLook training for all staff

5 General training on Filing and archiving

1 Training on information security to staff

A total of 100 staff has been trained during 2017

Review of e-filing system in units including visits in units

Number of annual visits and annual updates of list of files

5 visits

3 updates (closure of files, opening new files and "cleaning" exercise)

2 visits to the Units

3 updates on file management

Implementation of e-archiving (move away from paper filing towards digitalised documents registered in ARES)

Reduced amount of paper files in the units and reduced volume of paper files transferred to the Historical Archives

- Reduction of paper files to be transferred by 15%

- Reduction of paper consumption by 20%

There were no transfers of paper files from CLIMA to HA in 2017

Paper consumption was reduced in approx. 9,4% in 2017*, yielding an accumulative reduction of approx. 22% for the period 2016-2017


Review of existing ARES files to identify those that can be usefully shared with other DGs

Number of ARES files made accessible to other DGs

Increase the number by 15%

See indicator 3

Simplification of processes, reduction of paper circulation and improved use of electronic workflows (eSignatories) for a faster and more efficient approval

Number of procedures implemented into e-signatory workflows in ARES

Increase the number of e-signatories by 20%

48% Registered Documents with e-signatory in 2016

49% Registered Documents with e-signatory in 2017

D. External communication

Objective: Citizens perceive that the EU is working to improve their lives and engage with the EU. They feel that their concerns are taken into consideration in European decision making and they know about their rights in the EU.

Indicator 1: Percentage of EU citizens having a positive image of the EU

Definition: The Eurobarometer measures the state of public opinion in the EU Member States. This global indicator is influenced by many factors, including the work of other EU institutions and national governments, as well as political and economic factors, not just the communication actions of the Commission. It is relevant as a proxy for the overall perception of the EU citizens. Positive visibility for the EU is the desirable corporate outcome of Commission communication, even if individual DGs’ actions only make a small contribution. Source of data: Standard Eurobarometer [monitored by DG COMM here].

Baseline (November 2014)

Target (2020)

Latest known results (November 2017)

Total "Positive": 39% Neutral: 37 % Total "Negative": 22%

Positive image of the EU ≥ 50% Total "Positive": 40% Neutral: 37% Total "Negative": 21%

Main outputs in 2017: Output Indicator


EU Climate Action website *

Number of visits

Keep the current high level*

1.825.563 visits


Number of page views

3.323.342 page views

EU Climate Action Facebook

Number of followers

Keep the current high level (89.000 followers Nov 2016)

93.012

EU Climate Action Twitter

Number of followers

Keep the current high level (20.000 followers Nov 2016)

31.378

*It should be noted that given the migration 2016-17 to the Drupal web management system and to the Piwik statistic system, statistics for 2017 are not comparable to 2016.

Annual communication spending (based on estimated commitments):

Baseline (2016): Target (2017):

Total amount spent Total of FTEs working on external communication

701 K 784 K 408 K 7


ANNEX 3: DRAFT ANNUAL ACCOUNTS AND FINANCIAL REPORTS

2018-02-23_AAR2017_DG_annex3.pdf


ANNEX 4: MATERIALITY CRITERIA

Section 2.1 of this report sets out the main elements used to identify possible weaknesses in the internal control system. The significance/materiality of any weaknesses identified is assessed according to the following criteria:

1. Qualitative criteria

The qualitative criteria for assessing the significance of any weaknesses identified are:

the nature and scope of the weakness

the duration of the weakness

the existence of compensatory measures

the existence of effective corrective actions to correct the weaknesses

the residual reputational, financial, operational and legal/regulatory risk

2. Quantitative criteria

Concerning legality and regularity, a weakness is considered material if the value of the errors in the transactions affected by the weakness is estimated to represent more than 2% of the authorised payments of the reporting year of ABB activity 0702.

Note: The method for estimating the amount at risk is explained in detail in section 2.

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8

AN

NEX

5:

INTE

RN

AL

CO

NTR

OL

TEM

PLA

TE(S

) FO

R

BU

DG

ET

IMP

LEM

ENT

ATI

ON

(IC

TS

) P

rocu

rem

ent

– d

irec

t m

anag

emen

t

Ris

ks:

Pote

ntia

l iss

ues t

o be

add

ress

ed:

Con

trol

s:

Est

imat

ed r

esid

ual r

isk

I. Pr

epar

atio

n ph

ase

I. 1.

Ten

der s

peci

ficat

ions

are

bi

ased

to s

uit a

par

ticul

ar b

idde

r.

- Onl

y on

e or

few

tend

erer

s re

spon

d to

re

ques

t for

bid

s;

- Com

plai

nts

from

oth

er te

nder

ers.

- Con

sulta

tion

with

the

finan

cial

uni

t dur

ing

prep

arat

ory

stag

e;

- Agr

eem

ent b

etw

een

oper

atio

nal u

nit a

nd

finan

cial

uni

t on

final

ver

sion

of t

ende

r spe

cs;

- Ten

der s

pecs

trai

ning

ses

sion

s tw

ice

a ye

ar;

- Ups

tream

con

trol:

Add

ition

al v

erifi

catio

n an

d re

spon

sibl

e au

thor

isin

g of

ficer

su

perv

isio

n.

Res

idua

l ris

k ha

s be

en

asse

ssed

as

limite

d bo

th in

te

rms

of p

roba

bilit

y of

ha

ppen

ing

and

pote

ntia

l im

pact

.

I. 2.

Und

iscl

osed

con

flict

of

inte

rest

that

cou

ld le

ad to

in

form

atio

n le

akag

es b

efor

e te

nder

.

- Fav

ourit

ism

of a

par

ticul

ar c

ontra

ctor

; - C

lose

con

tact

bet

wee

n co

ntra

ctin

g em

ploy

ee

and

prod

uct/s

ervi

ce p

rovi

der;

- P

ossi

ble

conf

lict o

f int

eres

t res

ultin

g fr

om

empl

oym

ent o

f off

icia

ls' s

pous

es;

- Con

tract

ing

empl

oyee

has

und

iscl

osed

ou

tsid

e bu

sine

ss.

- Ope

ning

and

eva

luat

ion

com

mitt

ee m

embe

rs

sign

a d

ecla

ratio

n of

abs

ence

of c

onfli

ct o

f in

tere

sts;

- A

dditi

onal

che

cks

by th

e fin

anci

al u

nit;

- Sta

ff p

artic

ipat

ing

in th

e te

nder

eva

luat

ions

ar

e re

quire

d to

atte

nd a

nti -f

raud

aw

aren

ess

train

ing;

- R

ed fl

ags

chec

ked

for e

very

file

.

Lim

ited

resi

dual

risk

(p

roba

bilit

y an

d im

pact

).

II. E

valu

atio

n ph

ase

II. 1

.1. B

iase

d, u

nfai

r eva

luat

ion

proc

edur

e.

- Acc

epta

nce

of la

te te

nder

s (a

nd la

te te

nder

er

is th

e w

inni

ng te

nder

er);

- T

ende

rs o

pene

d ea

rly;

- Win

ning

tend

erer

com

mun

icat

es p

rivat

ely

with

con

tract

ing

pers

onne

l.

- Ope

ning

and

eva

luat

ion

com

mitt

ees;

- O

pini

on b

y co

nsul

tativ

e co

mm

ittee

CPA

C

(ass

esse

s fu

ll ev

alua

tion

proc

ess

and

draf

t aw

ard

deci

sion

for a

ll fil

es >

500

,000

and

ra

ndom

ly s

elec

ted

files

< 5

00,0

00);

- T

ende

rers

allo

wed

to a

ttend

ope

ning

s (f

or

open

cal

ls);

- Mod

el te

mpl

ates

& g

uide

lines

up-

to-d

ate.

Lim

ited

resi

dual

risk

of

poss

ible

col

lusi

on w

ith

cont

ract

or.

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II. 1

.2. C

ollu

sion

bet

wee

n co

ntra

ctor

s.

Con

tract

ors

coul

d ag

ree

on p

rices

(e.g

. in

fram

ewor

k co

ntra

cts)

to d

ivid

e m

arke

t.

- Exi

stin

g to

ols

to d

etec

t suc

h ca

ses

cons

eque

ntly

put

a fr

amew

ork

cont

ract

in a

do

rman

t sta

te a

nd re

publ

ish.

- Lim

ited

resi

dual

risk

of

collu

sion

bet

wee

n co

ntra

ctor

s.

II. 2

. Fal

se c

ontra

ctor

de

clar

atio

ns a

nd o

ther

do

cum

enta

tion.

- Dis

crep

ancy

bet

wee

n co

ntro

l and

orig

inal

do

cum

enta

tion.

- C

ontro

l doc

umen

ts v

iz. o

rigin

al d

ocum

ents

ar

e ke

pt a

t CLI

MA

.A.4

; - E

arly

Det

ectio

n an

d Ex

clus

ion

Syst

em

(ED

ES);

- E

xclu

sion

crit

eria

det

erm

ined

.

Lim

ited

resi

dual

risk

(p

roba

bilit

y an

d im

pact

).

III.

Aw

ard

phas

e - N

umbe

r of c

ompl

aint

s by

uns

ucce

ssfu

l te

nder

ers.

- C

LIM

A.A

.4 s

ends

lette

rs w

ith ju

stifi

catio

n to

the

unsu

cces

sful

tend

erer

s.

Lim

ited

resi

dual

risk

(p

roba

bilit

y an

d im

pact

).

IV

. I

mp

lem

enta

tio

n

IV.

1.Col

lusi

on w

ith c

ontr

acto

r to

ac

cept

su

b -st

anda

rd

perf

orm

ance

.

- D

iscr

epan

cy,

if an

y,

betw

een

deliv

ered

re

sults

and

cont

ract

pro

visi

ons;

- Lo

w q

ualit

y /

poor

per

form

ance

.

- O

pera

tion

al a

nd fin

anci

al c

heck

s ac

cord

ing

to fin

anci

al c

ircu

its;

- Con

form

e au

x fa

its

by

oper

atio

nal

initi

ator

;

- Res

pons

ible

au

thor

isin

g of

ficer

au

thor

isat

ion;

- Req

uest

, if

at a

ll, f

or a

ban

k gu

aran

tee;

- N

on-p

erfo

rman

ce c

ontr

actu

al c

laus

es.

- Li

mited

/med

ium

re

sidu

al

risk

of

op

erat

iona

l in

itiat

or

still

co

lludi

ng

with

co

ntra

ctor

.

The

limited

/med

ium

res

idua

l ri

sk

coul

d be

fu

rthe

r re

duce

d by

the

reg

ular

use

of

red

fla

gs c

heck

lists

(pa

rt

of

the

revi

sed

Ant

i-Fr

aud

Str

ateg

y).

IV.

2. P

hant

om c

ontr

acto

r -

Con

trac

tor

cann

ot

be

foun

d in

an

y di

rect

orie

s, s

earc

h en

gine

s et

c;

- Con

trac

tor

lists

inco

rrec

t st

reet

add

ress

or

- ABAC r

egis

trat

ion

chec

k;

- U

se o

f de

tect

ion

tool

s to

ide

ntify

a f

alse

co

ntra

ctor

.

Lim

ited

re

sidu

al

risk

(p

roba

bilit

y an

d im

pact

).

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73

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8

phon

e nu

mbe

r.

IV.

3.

Plag

iarism

/

Prod

uct

subs

titu

tions

-

Sig

nific

ant

diff

eren

ce b

etw

een

estim

ated

vs

. ac

tual

cos

ts;

- In

voic

e do

es n

ot m

atch

pur

chas

e or

der;

- U

se o

f co

py /

pas

te f

rom

oth

er o

ffer

s,

repo

rts,

fin

al p

rodu

cts

etc.

- U

se o

f IT

too

ls t

o id

entify

pla

giar

ism

.

Lim

ited

/med

ium

re

sidu

al

risk

(p

roba

bilit

y an

d im

pact

).

The

limited

/med

ium

res

idua

l ri

sk

coul

d be

fu

rthe

r re

duce

d by

th

e us

e of

ex

tern

al d

atab

ases

and

too

ls

– e.

g.

the

ones

lis

ted

on

OLA

F's

anti-f

raud

web

site

.

IV.

4. D

oubl

e fu

ndin

g

- D

oubl

e fu

ndin

g of

the

sam

e st

udy

serv

ice

cont

ract

- Con

trac

tor

prov

ides

the

sam

e pr

oduc

t to

di

ffer

ent

DG

clie

nts

- Po

ssib

ility

to

use

or a

dd f

eatu

res

in A

BAC

to id

entify

dou

ble

fund

ing.

-Pro

visi

on

of

decl

arat

ion

that

th

e op

erat

iona

l un

it

has

chec

ked

for

the

exis

tenc

e of

sim

ilar

stud

ies

Med

ium

re

sidu

al

risk

(p

roba

bilit

y an

d im

pact

).

The

med

ium

re

sidu

al

risk

co

uld

be f

urth

er r

educ

ed b

y th

e re

gula

r us

e of

red

fla

gs

chec

klis

ts

(par

t of

th

e re

vise

d Ant

i -Fr

aud

Str

ateg

y)

and

addi

tiona

l tra

inin

g.

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Fin

anci

al I

nst

rum

ents

- I

nd

irec

t m

anag

emen

t

IFI

= (

entr

uste

d) I

nter

natio

nal

Fina

ncia

l In

stitu

tion

(eg

EIB/E

IF,

etc)

; FI

= (

furt

her

entr

uste

d) F

inan

cial

Int

erm

edia

ries

; "s

ub

"-FI

=

(fur

ther

) su

b-de

lega

ted

FI;

FR =

Fin

al R

ecip

ient

DS =

Des

igna

ted

serv

ice

(com

pete

nt D

Gs)

Mai

n r

isks

It

may

hap

pen

(ag

ain

) th

at…

M

itig

atin

g c

on

trol

s H

ow t

o d

eter

min

e co

vera

ge

freq

uen

cy a

nd

dep

th

How

to

est

imat

e th

e co

sts

and

ben

efit

s of

co

ntr

ols

Pos

sib

le c

ontr

ol

ind

icat

ors

a)

The

acti

on

s su

pp

orte

d t

hro

ug

h t

he

Fin

anci

al

Inst

rum

ent

do

not

ad

equ

atel

y re

flec

t th

e p

olic

y ob

ject

ives

(n

o

com

plia

nce

w

ith

Fi

n.

Reg

. ar

t.

14

0

and

in

stru

men

t sp

ecif

ic

obje

ctiv

es)

Gui

danc

e pr

ovid

ed t

o th

e IF

I fo

r th

e as

sess

men

t of

pr

ojec

ts b

y th

e D

S;

P

rior

elig

ibili

ty c

onfir

mat

ion

of t

he D

S f

or e

very

pro

ject

Te

chni

cal a

ssis

tanc

e;

Reg

ular

rep

orting

by

the

IFI

to t

he D

S o

n th

e op

erat

iona

l pe

rfor

man

ce,

incl

udin

g th

e m

anag

emen

t de

clar

atio

n,

and

the

sum

mar

y of

aud

its

and

cont

rols

car

ried

out

du

ring

the

rep

orting

yea

r;

Ind

epen

dent

aud

it o

pini

on;

In

case

of w

eak

repo

rtin

g,

nega

tive

aud

it o

pini

on,

high

ri

sk o

pera

tion

s, e

tc:

rein

forc

ed

mon

itor

ing/

supe

rvis

ion

cont

rols

, ra

ndom

and

/or

case

/ris

k-ba

sed

audi

ts a

t th

e IF

I an

d (s

ub)

FI le

vels

;

If

risk

m

ater

ialis

es,

the

Fina

ncia

l In

stru

men

t w

ould

be

ir

regu

lar.

Po

ssib

le

impa

ct

100%

of

fu

nds

invo

lved

an

d si

gnifi

cant

re

puta

tion

al c

onse

quen

ces.

C

over

age

/ F

req

uen

cy:

100%

D

epth

: Che

cklis

t on

op

erat

iona

l re

port

ing

incl

udes

a l

ist

of c

heck

s to

be

done

.

Cos

ts:

estim

atio

n of

co

st o

f st

aff

invo

lved

in

the

prep

arat

ion

and

valid

atio

n of

th

e op

erat

iona

l rep

orting

Cos

t of

th

e te

chni

cal

assi

stan

ce.

Ben

efit

s: t

he (

aver

age

annu

al)

tota

l va

lue

of

the

Fina

ncia

l In

stru

men

t.

Effe

ctiv

enes

s: e

volu

tion

of

the

spec

ific

indi

cato

rs i

n th

e op

erat

iona

l re

port

ing

com

pare

d w

ith

benc

hmar

ks

and

evol

utio

n ov

er t

ime.

Whe

re

appl

icab

le,

opin

ion

by

tech

nica

l as

sist

ance

(r

ecom

men

dation

s,

action

s ta

ken)

.

CLI

MA_a

ar_2

017_

draf

t

Page

75

of 9

8

b)

The

IFI

(an

d

the

(su

b)F

I) d

oes

not

hav

e th

e ex

per

ien

ce

to

ensu

re

effe

ctiv

e im

ple

men

tati

on o

f th

is

typ

e o

f Fi

nan

cial

In

stru

men

t

Elig

ibili

ty s

tand

ards

for

IFI

es

tabl

ishe

d an

d ve

rifie

d ac

cord

ing

to t

he D

eleg

atio

n Agr

eem

ent

and

FAFA

. G

uida

nce

prov

ided

to

the

IFI

for

the

asse

ssm

ent

of

proj

ects

by

the

DS;

Cov

erag

e /

Fre

qu

ency

: 10

0%

Dep

th:

In

acco

rdan

ce

with

the

Del

egat

ion

Agr

eem

ent.

Cos

ts:

estim

atio

n of

te

chni

cal

assi

stan

ce

cost

. B

enef

its:

re

duce

d ri

sk

rela

ted

to

the

disb

urse

men

t of

th

e to

tal

amou

nt

by

sele

ctin

g th

e IF

I on

the

ba

sis

of

the

abili

ty

to

use

the

fund

ing

in

the

mos

t ef

ficie

nt

and

effe

ctiv

e w

ay

Mai

n

risk

s It

may

hap

pen

(ag

ain

) th

at…

Mit

igat

ing

con

trol

s H

ow

to

det

erm

ine

cove

rag

e fr

equ

ency

an

d d

epth

H

ow t

o es

tim

ate

the

cost

s an

d b

enef

its

of

con

tro

ls

Pos

sib

le

con

trol

in

dic

ator

s

c) F

Is a

nd

FR

s ar

e n

ot

sele

cted

o

n

the

bas

is

of

an

open

, tr

ansp

aren

t,

just

ifie

d

on

obje

ctiv

e g

rou

nd

s p

roce

du

re o

r th

ere

are

con

flic

ts o

f in

tere

sts

in

the

sele

ctio

n p

roce

ss.

Res

pons

ibili

ty for

sel

ecting

FI

and

FR,

lies

with

the

IFI

and

FI,

resp

ective

ly;

P

rior

elig

ibili

ty c

onfir

mat

ion

of

the

DS f

or e

very

FI.

Cov

erag

e /

Fr

equ

ency

: de

term

ined

by

th

e IF

I/FI

in

ac

cord

ance

w

ith

the

dele

gatio

n ag

reem

ent

(max

tw

ice

per

year

for

th

e ne

xt 5

yea

rs)

Dep

th:

dete

rmin

ed b

y th

e IF

I/FI

in

acco

rdan

ce

with

the

Del

egat

ion

Agr

eem

ent

Cos

ts:

estim

atio

n of

th

e co

st

of

staf

f in

volv

ed

in

the

mon

itor

ing

of

the

Fina

ncia

l In

stru

men

t.

Cos

t of

co

ntra

cted

se

rvic

es (

Aud

it c

osts

).

Ben

efit

s:

redu

ced

risk

re

late

d to

po

ssib

le

conf

lict

of

inte

rest

an

d qu

estion

able

se

lect

ion

proc

edur

e.

Effe

ctiv

enes

s:

the

sele

ctio

n of

FI

and

FR w

ould

(n

ot)

be

(suc

cess

fully

) ch

alle

nged

Cos

t-ef

fect

iven

ess:

Ave

rage

cos

t of

pre

para

tion

, ad

option

and

sel

ectio

n w

ork

done

(co

mpa

red

with

sim

ilar

case

s as

ben

chm

ark)

d)

The

des

ign

of

th

e ac

cou

nti

ng

an

d

rep

ort

ing

Sep

arat

e re

cord

s pe

r Fi

nanc

ial I

nstr

umen

t ar

e to

be

kep

t by

the

IFI

; an

d

Cov

erag

e /

Fre

qu

ency

: 10

0%

Dep

th:

In d

epth

ass

essm

ent

of t

he

stat

emen

t of

exp

ense

s

Cos

ts:

estim

atio

n of

th

e co

st

of

staf

f in

volv

ed

in

the

CLI

MA_a

ar_2

017_

draf

t

Page

76

of 9

8

arra

ng

emen

ts

wou

ld

not

p

rovi

de

suff

icie

nt

tran

spar

ency

(T

rue

&

Fair

Vie

w)

harm

onis

ed r

epor

ting

has

be

en r

equi

red

by t

he

Com

mis

sion

(cf

. FA

FA &

Das

).

m

onitor

ing

of

the

Fina

ncia

l In

stru

men

t.

Cos

t of

co

ntra

cted

se

rvic

es,

if an

y Tr

aini

ng

of

the

conc

erne

d st

aff.

e) t

he

rem

un

erat

ion

of

the

IFI3

9,

the

reim

bu

rsem

ent

of a

ny

exce

pti

on

al

cost

s an

d

cost

s fo

r te

chn

ical

as

sist

ance

or

ad

dit

ion

al t

asks

wo

uld

n

ot b

e in

lin

e w

ith

th

e ob

ject

ive

Fee

s, a

ny in

cent

ives

and

any

ex

cept

iona

l cos

ts a

re d

efin

ed

in t

he F

AFA

and

the

D

eleg

atio

n Agr

eem

ents

, in

clud

ing

an o

vera

ll ca

p;

Rei

mbu

rsem

ent

of c

ost

for

tech

nica

l ass

ista

nce

and

addi

tiona

l tas

ks t

o be

def

ined

in

the

FAFA

and

the

de

lega

tion

agr

eem

ent;

R

evie

w b

y th

e de

sign

ated

se

rvic

e of

the

sta

tem

ent

of

expe

nses

tog

ethe

r w

ith

evid

ence

pro

vide

d by

the

IFI

; E

x-an

te a

nd e

x-po

st c

ontr

ols,

O

n-th

e-sp

ot v

erifi

catio

ns

(ris

k-ba

sed

or

repr

esen

tative

sa

mpl

es).

Cov

erag

e /

Fre

qu

ency

: 10

0%

Dep

th:

In d

epth

ass

essm

ent

of t

he

stat

emen

t of

exp

ense

s

Trai

ning

of th

e co

ncer

ned

staf

f

Cos

ts:

estim

atio

n of

th

e co

st

of

staf

f in

volv

ed

in

the

mon

itor

ing

of

the

Fina

ncia

l In

stru

men

t.

Cos

t of

co

ntra

cted

se

rvic

es,

if an

y

Rem

uner

atio

n an

d co

sts

for

actu

ally

m

anag

ed

fund

s (c

ompa

red

to b

ench

mar

k)

Mai

n

risk

s It

may

hap

pen

(ag

ain

) th

at…

Mit

igat

ing

con

trol

s H

ow

to

det

erm

ine

cove

rag

e,

freq

uen

cy a

nd

dep

th

How

to

esti

mat

e th

e co

sts

and

ben

efit

s o

f co

ntr

ols

Pos

sib

le

con

trol

in

dic

ator

s

f)

Inte

rnal

co

ntr

ol

wea

knes

ses,

M

onito

ring

or

supe

rvis

ion

(40)

of e

ntru

sted

ent

ities

;

Cov

erag

e:

100%

of

th

e fu

ndin

g pa

ymen

ts to

th

e en

trus

ted

entity

C

osts

: es

tim

atio

n of

th

e co

st

of

staf

f Ef

fect

iven

ess:

39 Rem

uner

atio

n in

clud

es a

dmin

istr

ativ

e an

d pe

rfor

man

ce f

ees.

40

The

natu

re o

f th

ese

mea

sure

s is

sim

ilar.

We

dist

ingu

ish

betw

een

thos

e ca

ses

in w

hich

the

Com

mis

sion

has

a d

irec

t (l

egal

/con

trac

tual

) sa

y in

the

man

agem

ent

proc

ess,

su

ch a

s th

e righ

t to

blo

ck e

x-an

te a

tra

nsac

tion

(sup

ervi

sion

), o

r ca

n m

erel

y fla

g its

dis

agre

emen

t (m

onito

ring

), a

nd inf

luen

ce t

he f

unda

men

tal op

tions

for

esee

n un

der

the

FR r

elat

ed t

o st

oppi

ng/s

uspe

ndin

g/re

conf

igur

ing/

win

ding

-dow

n th

e FE

I.

CLI

MA_a

ar_2

017_

draf

t

Page

77

of 9

8

irre

gu

lari

ties

, er

rors

an

d

frau

d

are

not

d

etec

ted

an

d c

orre

cted

b

y th

e en

tru

sted

en

titi

es,

resu

ltin

g

in

that

th

e E

U f

un

ds

are

not

co

mp

lian

t w

ith

ap

plic

able

reg

ula

tion

s.

Reg

ular

rep

ortin

g by

the

IFI

to

the

Com

mis

sion

"D

esig

nate

d Ser

vice

" on

the

op

erat

iona

l and

fin

anci

al

perf

orm

ance

, in

clud

ing

the

finan

cial

sta

tem

ents

, m

anag

emen

t de

clar

atio

n,

sum

mar

y of

aud

its a

nd

cont

rols

car

ried

out

dur

ing

the

repo

rtin

g ye

ar;

Ind

epen

dent

aud

it op

inio

n;

In

case

of w

eak

repo

rtin

g,

nega

tive

audi

t op

inio

n, h

igh

risk

ope

ratio

ns,

etc:

re

info

rced

m

onito

ring

/sup

ervi

sion

co

ntro

ls,

rand

om a

nd/o

r ca

se/r

isk-

base

d au

dits

at

the

IFI

and

(sub

)FI

leve

ls;

Reg

ular

sub

mis

sion

of

disb

urse

men

t an

d re

paym

ent

(ass

igne

d re

venu

e) f

orec

asts

;

Rep

ortin

g on

fin

anci

al r

isk

&

off-

bala

nce-

shee

ts li

abili

ties;

R

epor

ting

on t

reas

ury

man

agem

ent.

are

cont

rolle

d,

incl

udin

g va

lue-

addi

ng c

heck

s.

Ris

kier

ope

ration

s su

bjec

t to

mor

e in

-dep

th c

ontr

ols

and/

or a

udits.

D

epth

: de

pend

s on

ri

sk

criter

ia

such

as

past

exp

erie

nce

of/w

ith

the

IFI/

FI,

com

plex

ity

or

lack

of

ex

peri

ence

on

the

area

of

finan

ced

action

s or

th

e m

anag

emen

t m

odal

ities

If

ne

eded

: su

spen

sion

or

in

terr

uption

of

paym

ents

, or

eve

n ap

plic

atio

n of

ex

it

stra

tegy

(w

indi

ng u

p)

invo

lved

in

th

e m

onitor

ing

of

the

Fina

ncia

l In

stru

men

t.

Cos

t of

co

ntra

cted

se

rvic

es,

if an

y B

enef

its:

va

lue

of th

e fu

ndin

g an

d di

sbur

sem

ent

fore

cast

re

ject

ed.

Expo

sure

of

th

e gu

aran

tees

no

t pr

ovid

ed.

Bud

get

valu

e of

th

e pa

rt

of

the

Fina

ncia

l Ins

trum

ent

not

paid

out

to

FR.

Loss

es:

eg w

rite

-offs

of

equi

ty/l

oans

, lo

an

guar

ante

es c

alle

d ab

ove

expe

ctat

ions

Suc

cess

per

form

ance

ra

tios

(e

g "l

ever

age"

, "c

o-ri

sk-

taki

ng",

nu

mbe

r of

FR

su

ppor

ted

by

the

Fina

ncia

l In

stru

men

t,

disb

urse

men

t ra

te)

Num

ber

of

cont

rol

failu

res

dete

cted

; va

lue

of

the

issu

es

conc

erne

d pr

even

ted/

corr

ecte

d.

Num

ber

and

valu

e of

in

tern

al

cont

rol,

audi

ting

and

mon

itor

ing

"iss

ues"

, nu

mbe

r of

in

terv

ention

s,

num

ber

of

issu

es

unde

r re

info

rced

in

tern

al

cont

rol,

audi

ting

and

mon

itor

ing,

nu

mbe

r of

cr

itica

l IA

S an

d EC

A fin

ding

s N

umbe

r of

cas

es s

ubm

itte

d to

OLA

F Ef

fici

ency

:

e.g.

Man

agem

ent

(fee

s) a

nd

supe

rvis

ion

cost

s (F

TE)

over

as

sets

und

er m

anag

emen

t ?

Cos

t -Ef

fect

iven

ess:

Ave

rage

co

st

per

Fina

ncia

l In

stru

men

t;

%

cost

ov

er

valu

e de

lega

ted

Cos

ts/B

enef

its

ratio

g)

the

FI,

wh

ich

ar

e p

ilot

init

iati

ves,

ar

e n

ot

resu

ltin

g

in

a n

um

ber

of

op

erat

ion

s si

gn

ific

ant

to

giv

e co

ncl

usi

ve r

esu

lts

Reg

ular

rep

ortin

g by

the

IFI

to

the

Com

mis

sion

"D

esig

nate

d Ser

vice

" (=

acco

unta

ble

DG

and

AO

D)

on t

he o

pera

tiona

l and

fin

anci

al p

erfo

rman

ce

Mid

ter

m e

valu

atio

n

Cov

erag

e: 1

00%

of

the

oper

atio

ns

are

take

n in

to a

ccou

nt.

If n

eede

d: r

evis

ion

of t

he r

epor

ting

re

quir

emen

ts

Ben

efit

s: t

he (

aver

age

annu

al)

tota

l va

lue

of

the

Fina

ncia

l In

stru

men

t.

CLI

MA_a

ar_2

017_

draf

t

Page

78

of 9

8

h)

the

risk

sh

arin

g

mec

han

ism

is

use

d

in

an

inst

rum

enta

l w

ay

by

the

IFI

Che

ck t

hat

the

Port

folio

First

Lo

ss P

iece

w

ill b

e de

crea

sing

w

ith t

he in

crea

se in

the

nu

mbe

r of

ope

ratio

ns

Cov

erag

e:

100%

of

th

e fu

ndin

g pa

ymen

ts to

th

e en

trus

ted

entity

ar

e co

ntro

lled,

in

clud

ing

valu

e-ad

ding

che

cks.

Ris

kier

ope

ration

s su

bjec

t to

mor

e in

-dep

th c

ontr

ols

and/

or a

udits.

Cos

ts:

estim

atio

n of

th

e co

st

of

staf

f in

volv

ed

in

the

mon

itor

ing

of

the

Fina

ncia

l In

stru

men

t.

Cos

t of

co

ntra

cted

se

rvic

es,

if an

y B

enef

its:

the

(av

erag

e an

nual

) va

lue

of

the

Com

mis

sion

co

ntri

butio

n to

the

FI.

Gra

nts

– d

irec

t m

anag

emen

t

Ris

ks:

Po

ten

tial

iss

ues

to

be

add

ress

ed:

C

ontr

ols:

Es

tim

ated

res

idu

al r

isk

I. E

valu

atio

n p

has

e

I. 1

. Th

e ev

alua

tion

, ra

nkin

g,

sele

ctio

n no

t ca

rrie

d ou

t ac

cord

ing

to

proc

edur

es,

elig

ibili

ty,

sele

ctio

n,

awar

d cr

iter

ia,

whi

ch

coul

d le

ad

to

bias

ed,

unfa

ir p

roce

dure

- Fa

vour

itis

m

to

a pa

rtic

ular

ap

plic

ant;

- Clo

se c

onta

ct w

ith

pote

ntia

l be

nefic

iari

es;

- Po

ssib

le c

onfli

ct o

f in

tere

sts

resu

lting

fro

m e

mpl

oym

ent

of

offic

ials

' spo

uses

;

- Bia

sed

eval

uato

rs;

- Pr

essu

re f

rom

tec

hnic

al u

nits

to

influ

ence

the

eva

luat

ion.

- Ass

ignm

ent

of

oper

atio

nal

initi

ator

s to

ev

alua

te:

full

vett

ing

of t

echn

ical

exp

ertise

an

d in

depe

nden

ce

(con

flict

s of

in

tere

st,

nation

ality

bia

s, e

x-em

ploy

er b

ias

etc.

);

- Pr

ior

to e

valu

atio

n, c

onsu

ltat

ion

and

revi

ew

by fin

anci

al u

nit

during

pre

para

tory

sta

ge;

- Rev

iew

(m

ixed

pa

nel)

an

d hi

erar

chic

al

valid

atio

n by

th

e re

spon

sibl

e au

thor

isin

g of

ficer

of

rank

ed li

st o

f pr

opos

als.

Res

idua

l risk

has

bee

n as

sess

ed a

s lim

ited

bot

h in

ter

ms

of p

roba

bilit

y of

hap

peni

ng a

nd p

oten

tial

impa

ct.

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79

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8

II.

Con

trac

tin

g p

has

e

II.

1. A

ctio

ns n

ot c

arri

ed o

ut

acco

rdin

g to

te

chni

cal

desc

ript

ion

and

/ or

am

ount

s pa

id

exce

ed

appl

icab

le

cont

ract

ual

and

regu

lato

ry

prov

isio

ns

II.

2. D

oubl

e fu

ndin

g

Del

ayed

in

teri

m

and

final

re

port

de

liver

able

s,

unst

able

co

nsor

tium

(i

ncl.

larg

e co

nsor

tia

with

part

ners

&

af

filia

ted

entitie

s),

a bi

g nu

mbe

r an

d di

ffer

ent

type

s of

am

endm

ents

, ED

ES

inst

ance

s et

c.

- Sam

e be

nefic

iary

re

ceiv

es

gran

ts

for

sam

e ac

tion

fr

om

differ

ent

Ser

vice

s.

- O

pera

tion

al a

nd f

inan

cial

che

cks

acco

rdin

g to

fin

anci

al

circ

uits

; te

chni

cal

repo

rts

appr

oval

by

oper

atio

nal u

nits

;

- Fi

nanc

ial

anal

ysis

of

repo

rt a

nd c

heck

of

rand

omly

sel

ecte

d in

voic

es b

y fin

anci

al u

nit;

- M

onitor

ing

team

vis

its;

- Aud

it ce

rtifi

cate

s;

- Fi

nanc

ial

unit

part

icip

ates

in

ki

ck-o

ff

mee

ting

s.

- U

se o

r ad

d fe

atur

es i

n ABAC t

o id

entify

do

uble

fun

ding

.

- ex

-pos

t au

dits

;

- ri

sk-b

ased

aud

its;

- In

tern

al c

ontr

ol s

tand

ards

(up

stre

am).

Res

idua

l risk

has

bee

n as

sess

ed a

s lim

ited

bot

h in

ter

ms

of p

roba

bilit

y of

hap

peni

ng a

nd p

oten

tial

impa

ct.

Med

ium

res

idua

l ris

k (p

roba

bilit

y an

d im

pact

).

The

med

ium

res

idua

l ri

sk c

ould

be

furt

her

redu

ced

by t

he r

egul

ar u

se o

f re

d fla

gs

chec

klis

ts

(par

t of

th

e re

vise

d Ant

i -Fr

aud

Str

ateg

y)

and

addi

tiona

l an

ti-fr

aud

awar

enes

s tr

aini

ng.

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8

III.

Ex-

po

st p

has

e

III.

1.

Ex-a

nte

cont

rols

fai

led

to

prev

ent,

de

tect

, co

rrec

t ir

regu

lar

paym

ents

or

at

tem

pted

fra

ud

- N

on-i

dent

ified

rec

over

ies;

- D

elay

s in

rec

over

ies.

- Aud

its

or d

esk

revi

ews

of a

rep

rese

ntat

ive

sam

ple

of c

lose

d pr

ojec

ts;

- Com

plem

ente

d by

a r

isk-

base

d sa

mpl

e an

d ch

eck

of t

ime

shee

ts b

y m

onitor

ing

team

;

- Val

idat

ed a

udit r

esul

ts b

y op

erat

iona

l uni

ts;

- Rec

over

y or

ders

rep

ort

to t

he r

espo

nsib

le

auth

oris

ing

offic

er;

- Fi

nanc

ial u

nit

chec

ks a

udit

repo

rts;

- M

ulti-

annu

al

basi

s +

co

ordi

natio

n w

ith

othe

r re

spon

sibl

e au

thor

isin

g of

ficer

co

ncer

ned

Res

idua

l ri

sk

has

been

as

sess

ed

as

limited

bot

h in

ter

ms

of p

roba

bilit

y of

ha

ppen

ing

and

pote

ntia

l im

pact

.

III.

2.

Erro

rs,

irre

gula

ritie

s,

pote

ntia

l fr

aud

case

s ar

e no

t (t

imel

y) a

ddre

ssed

- Ris

k of

la

ck

of

a co

mpl

ete

and

upda

ted

over

view

of

al

l po

tent

ial f

raud

cas

es;

- Ris

k of

no

regu

lar

repo

rtin

g on

su

spec

ted

frau

d ca

ses

(to

Dir

ecto

r G

ener

al);

No

over

view

of

re

curr

ent

erro

rs/p

oten

tial

fr

aud

per

bene

ficia

ry.

- Com

plet

e ov

ervi

ew

of

frau

d ca

ses

is

ensu

red,

with

cont

act

poin

ts a

vaila

ble;

- Reg

istr

atio

n of

aud

it r

esul

ts in

a d

atab

ase;

- Reg

ular

rep

orting

is

ensu

red,

the

Dir

ecto

r G

ener

al

is

info

rmed

tw

ice

a ye

ar

abou

t re

port

ed f

raud

cas

es;

- Fo

reca

st o

f re

venu

e is

sued

by

the

finan

cial

un

it;

- Fi

nanc

ial

and

oper

atio

nal

valid

atio

n of

re

cove

ry

orde

rs

acco

rdin

g to

fin

anci

al

circ

uits

;

- Aut

hori

satio

n of

the

rec

over

y or

der

by t

he

resp

onsi

ble

auth

oris

ing

offic

er.

Lim

ited

/Med

ium

ris

k

The

limite

d/m

ediu

m

resi

dual

ri

sk

coul

d be

fu

rthe

r re

duce

d by

th

e re

gula

r us

e of

re

d fla

gs

chec

klis

ts

(par

t of

th

e re

vise

d Ant

i-Fr

aud

Str

ateg

y).

CLI

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81

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8

Ad

min

istr

ativ

e ex

pen

dit

ure

:

Ris

k ar

eas:

P

ote

nti

al i

ssu

es t

o b

e ad

dre

ssed

: C

ontr

ols:

Es

tim

ated

res

idu

al r

isk

1. T

rain

ing

- Po

tent

ial

paym

ent

of

inel

igib

le c

osts

. -

Purc

hase

ord

ers

set

up b

efor

e re

ceip

t of

an

invo

ice,

ch

ecks

ag

ains

t a

part

icip

ants

lis

t (s

igne

d);

- Sig

natu

re

the

"con

form

e au

x fa

its"

to

va

lidat

e pa

ymen

t;

- Che

ck c

ompa

ny/i

ndiv

idua

l upo

n re

gist

ration

in

ABAC;

the

prov

ider

is p

aid

dire

ctly

.

Lim

ited

res

idua

l ri

sk (

prob

abili

ty a

nd

impa

ct).

2. P

ublic

atio

ns

- Po

tent

ial

paym

ent

of

inel

igib

le c

osts

.

- Pu

blic

atio

ns p

rodu

ctio

n w

ithi

n a

fram

ewor

k co

ntra

ct;

- Che

ck o

f re

calc

ulat

ed f

inal

inv

oice

am

ount

an

d th

at in

the

off

er;

- Sig

natu

re

the

"con

form

e au

x fa

its"

to

va

lidat

e pa

ymen

t.

Lim

ited

res

idua

l ri

sk (

prob

abili

ty a

nd

impa

ct).

3. I

nter

nal m

eeting

s

- Po

tent

ial

paym

ent

of

inel

igib

le c

osts

.

- Th

e Com

mis

sion

sig

ned

fram

ewor

k co

ntra

ct

with

cate

rer;

- M

anag

ed

thro

ugh

inte

rnal

ap

plic

atio

n (P

RES

TO);

- Che

ck

of

paym

ent

orde

rs

and

final

am

ount

s;

Lim

ited

res

idua

l ri

sk (

prob

abili

ty a

nd

impa

ct).

CLI

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of 9

8

- Sig

natu

re

the

"con

form

e au

x fa

its"

to

va

lidat

e pa

ymen

t.

4. E

nter

tain

men

t ex

pens

es

- Po

tent

ial

paym

ent

of

inel

igib

le c

osts

.

- D

irec

tors

app

rove

the

use

of a

budg

et li

ne;

- D

irec

tors

/Uni

ts n

eed

to j

ustify

exp

ense

s to

th

ird

part

ies

(with

who

, w

here

, ho

w m

any)

;

- Che

ck

amou

nts,

tim

ing

(e.g

. no

t du

ring

ho

liday

s);

- Sig

natu

re

the

"con

form

e au

x fa

its"

to

va

lidat

e pa

ymen

t.

Lim

ited

re

sidu

al

risk

(l

imited

to

m

ediu

m p

roba

bilit

y, lo

w im

pact

as

low

am

ount

s ar

e in

volv

ed).

5. E

xper

ts

- Sam

e ex

pert

cl

aim

s co

sts

(e.g

. tr

avel

co

sts)

/

rece

ives

pa

ymen

ts

twic

e (o

r se

vera

l tim

es).

- ra

isin

g an

ti-f

raud

aw

aren

ess

(i.e

. in

dica

tors

po

intin

g to

pos

sibl

e ir

regu

laritie

s or

fra

ud);

- Coo

rdin

atio

n w

ith

PMO

.

Lim

ited

res

idua

l ri

sk (

prob

abili

ty a

nd

impa

ct).


ANNEX 6: IMPLEMENTATION THROUGH NATIONAL OR INTERNATIONAL PUBLIC-SECTOR BODIES AND BODIES GOVERNED BY PRIVATE LAW WITH A PUBLIC SECTOR MISSION - NOT APPLICABLE


ANNEX 7: EAMR OF THE UNION DELEGATIONS - NOT APPLICABLE


ANNEX 8: DECENTRALISED AGENCIES - NOT APPLICABLE


ANNEX 9: EVALUATIONS AND OTHER STUDIES FINALISED OR CANCELLED DURING THE YEAR

Annex 9 DG CLIMA_AAR2017.xlsx


ANNEX 10: SPECIFIC ANNEXES RELATED TO "FINANCIAL MANAGEMENT" - NOT APPLICABLE


ANNEX 11: SPECIFIC ANNEXES RELATED TO "ASSESSMENT OF THE EFFECTIVENESS OF THE INTERNAL CONTROL SYSTEMS" - NOT APPLICABLE


ANNEX 12: PERFORMANCE TABLES General objective 1: A resilient energy Union with a forward looking climate policy Impact indicator: Level of greenhouse gas emissions (CSI/010/011) Source of the data: European Commission and European Environment Agency (EEA) Baseline (2013)

Target (2020)


80,2 At least 20% reduction (index ≤80) 77.88 Bookmark Impact indicator: Greenhouse gas emissions intensity of the economy (reduction of Emissions/growth of GDP) Source of the data: EEA Baseline (1990)

Interim Milestone

Target (2020) (2050)41


(2014)

Index=100 55 As low as possible, further decrease

51

Specific objective 1: Further development of the well-functioning EU carbon market, via the EU ETS, towards a 21 % reduction of GHG emissions by 2020 and 43% by 2030 compared with 2005 in the sectors of power and heat generation, energy-intensive industries and aviation.

Related to spending programme(s) LIFE Regulation

Result indicator: Level of greenhouse gas emissions captured in in the EU ETS managed by DG CLIMA Source of data: Annual Climate Action progress report (European Commission + EEA) Baseline (2005)

Interim Milestone Target ((2030) 2030 Climate and Energy package – Council Conclusions October 2014


(2020)

Index = 100 81 (-21%) 57 (-43%) 74 (-26%)42 Specific objective 2: A fair and operational framework for MS at first towards a reduction of 10 % GHG emissions by 2020 and 30% by 2030 compared to 2005 in the non-ETS sectors in the EU (agriculture, forestry, land use, buildings, transport, waste) (= EU Effort Sharing Regulation, LULUCF Regulation, use of Fluorinated-gases and consumption of Ozone Depleting Substances)


41 (2020) - Europe 2020 target + (2050) - Decarbonisation of the economy is one of the 5 dimensions of the Energy Union Strategy - Roadmap for moving to a competitive low carbon economy in 2050 aiming for a reduction of GHG gases by 80-95 by 2050 - Paris' global climate deal aiming for minus 40-70% by 2050 42 Data based on the European Environmental Agency (EEA) estimations of the scope of ETS before phase 3 (2013-2020).


Result indicator: Level of greenhouse gas emissions (non EU ETS sectors) Source of data: Annual Climate Action progress report (European Commission + EEA) Baseline (2005)

Interim Milestone Target (2030) 2030 Climate and Energy package – Council Conclusions October 2014 and Decision No 406/2009/EC of 23 April 2009 on the effort of Member States to reduce their GHG emissions up to 2020 (Effort Sharing Decision or ESD)


(2020)

2.947,990 Mt CO2 eq. emitted Index=100

90 (-10%) 70 (-30%) 89 (-11%)

Result indicator: Montreal protocol: EU consumption of controlled ODS or Ozone Depleting Substances (hydro chlorofluorocarbons of HCFCs + methyl bromide) Source of data: EEA report Baseline (2005)

Interim Milestone (please introduce as many columns as the number of milestones)

Target (2040)

Latest known results (2016) (2020)

Zero net consumption

Ban on all imports and exports of HCFC Ban on all production of HCFC's

Ban on all critical uses

85% reduction of HCFC imports as compared to 2006

88% reduction of HCFC exports as compared to 2006

92% reduction of HCFC production as compared to 2006

Result indicator: Level of F-gas emissions (mainly Hydro fluorocarbons or (HFC’s)


Source of data: Annual Climate Action progress Report (European Commission + EEA)

Baseline (2014)

Interim Milestone

Target (2030) Regulation (EU) No 517/2014 of 16 April 2017 on fluorinated greenhouse gases


(2020) (2025)

112.4 Mt CO2 eq. emitted Index=100

85 (-15%) 55 (-45%) 33.33 (-66.6%) 96 (-4%)

Specific objective 3: Further decarbonisation of the transport sector in the EU through development and implementation of harmonised policies (in cooperation with other DGs like DG MOVE, GROW,...)


Result indicator: Average CO2 emissions from new cars Source of data: Annual Climate Action progress Report (European Commission + EEA) Baseline (2009)

Interim Milestone Target (2020) Cars Regulation 443/2009


(2015)

145.7 g/km 130 g/km 95 g/km 118.1 g/km Result indicator: Average CO2 emissions from new vans (light commercial vehicles) Source of data: Annual Climate Action progress Report (European Commission + EEA) Baseline (2009)

Interim Milestone Target (2020) Vans Regulation 510/2011


(2017)

180.2 g/km 175 g/km 147 g/km 163.7 g/km Bookmark Specific objective 4: Increased resilience of EU society against the effects of climate change via effective support to MS respecting the subsidiarity principle (adaptation)

Related to spending programme(s) LIFE Regulation + EU Budget

Result indicator: Number of national adaptation strategies adopted by MS Source of data: Annual Climate Action progress Report ((European Commission + EEA) Baseline (2013)

Target ((2017) ) Communication Adaptation Strategy of 2013)


13 28 2543

Result indicator: Number of communes signing up to the new integrated Covenant of the Mayors

43 Croatia, Latvia and Bulgaria are currently working in their National adaptation strategy and adoption is expected soon.


Source of data: Covenant of the Mayors website

Baseline (2015)

Target (2020)


6300 Steady increase 7600

Specific objective 5: Optimisation and sound and efficient management of financial incentives to support the innovation-based shift towards a low carbon and climate-resilient EU economy (through the EU budget and the (ETS) funds) (in cooperation with all DGs)

Related to spending programme(s) LIFE Regulation + EU Budget

Result indicator: Attributable climate improvements of the LIFE programme (attributable reduction in greenhouse gas emission and/or an increased climate change resilience) Source of data: Programme Statement LIFE programme (grants + financial instruments) Baseline (2013)

Interim Milestone Target ((2020) Programme Statement LIFE programme)


(2017)

No data 80% of ongoing/ finalised projects progress towards climate improvements

≥ 80% of ongoing projects progress towards/ of finalised projects achieved r climate improvements

92%

Result indicator: Reduction of tons of GHG emissions attributable to the projects of the LIFE programme Source of data: Programme Statement LIFE Baseline (2013)

Interim Milestone

Target ((2020) Programme Statement LIFE programme)


(2017)

No data Relative reduction in tons of greenhouse gasses per project of at least 20% compared to project baseline.

Relative reduction in tons of greenhouse gasses per project of at least 20% compared to project baseline.

63%44

Result indicator: Increased climate resilience attributable to the projects in the LIFE programme Source of data: Programme Statement LIFE

44 Average percentage of reduction of tons of greenhouse gas emissions due to innovative technologies and/or best

practice solutions.


Baseline (2013)

Interim Milestone

Target ((2020) Programme Statement LIFE programme)


(2017)

No data Increased climate resilience due to LIFE funded projects in vulnerable areas as identified in the EU adaptation strategy

Increased climate resilience due to LIFE funded projects in vulnerable areas as identified in the EU adaptation strategy

69%

Result indicator: Level of climate mainstreaming (=integration of the climate dimension) in the EU budget Source of data: MFF mid-term review COM(2016) 603 Baseline (2013)

Target (2020) COM Communication Average for the period 2014-2020

Latest known results Average for the period 2014-2017:

6-7% indicative 20% 18% Result indicator: Residual error rate (RER) in LIFE(+) programme (below 2% of amount spent)(KPI) Source of data: Annual Activity Report DG CLIMA (internal assessment) Baseline (2014)

Target (2020)


0.144% Below 2 % 0%45 Specific objective 6: Implementation of the Energy Union Strategy towards an enhanced climate and energy governance mechanism including streamlined reporting and planning post 2020 (coordination with DG ENER

Related to spending programme(s)

Result indicator: Adoption of national climate and energy plans by MS to contribute to the EU’s post 2020 goals Source of data: State of the Energy Union progress report Baseline (2015)

Interim Milestone Target ((2020) 2030 Climate and Energy package – Council Conclusions October 2014)


45 Considering there were no LIFE grant payments authorised in 2017 for DG CLIMA, the residual error rate is 0 while the

amount at risk at closure is 6.400 €. Calculations can be found in the pag.42 of the AAR.


0 28 drafts by 1 Jan 2018; final by 1Jan 201946

047

Specific objective 7: Ambitious contribution to effective international negotiations (including bilateral cooperation and climate diplomacy) on climate (UNFCCC, Kyoto, Paris, ICAO, IMO) and ozone layer (Montreal) related matters (in cooperation with other DGs and the EEAS

Related to spending programme(s)

Result indicator: Participation in multilateral climate negotiations upon signature Source of data: EU report – Council decisions Baseline (2010)

Interim Milestone

Target (2020) depending on progress made (see page 11: Montreal, IMO, ICAO tbd)


(2016)

5 conventions signed

6 (including Paris Agreement) tbc 6

Main outputs in 2017: Specific objective 1: A well-functioning EU carbon market, managed in-house by DG Climate Action via the EU ETS, towards further reduction of GHG emissions by energy power and heat generation installations, by energy-intensive industries and by domestic aviation

Related to spending programme(s) LIFE Regulation 1293/2013, EU budget.

Policy–related outputs Output Indicator Target Latest known

results (situation on 31/12/2017)

EU ETS aviation – follow-up to 2016 ICAO Assembly (2015/CLIMA/014)

Publication of the Impact Assessment SWD

Q1 2017 Q1 2017 Completed

Adoption of the legislative proposal


Main expenditure outputs Output Indicator Target Latest known


25 procurement contracts

25 contracts signed 31 December 2017 19 contracts signed

46 The Governance Regulation that requires Member States to draft integrated plans was under legislative negotiation by

the co-legislators at the end 2017. The adoption of national climate and energy plans had to be postponed until the adoption of the Regulation.

47 Progress towards this target in the Annex 3 of the State of the Energy Union: COM (2017) 688 final.


Specific objective 2: A fair and operational framework for MS towards a further reduction of GHG emissions in the non-ETS sectors in the EU (agriculture, forestry, land use, buildings, transport, waste) (= EU Effort Sharing Decision or ESD, use of Fluorinated-gases and consumption of Ozone Depleting Substances)

Related to spending programme(s) LIFE Regulation.



Decision on MS 2014 GHG emissions (2016/CLIMA/020)

Adoption of Commission Implementing Decision


Decision on MS 2015 GHG emissions (2016/CLIMA/021)



Amendment of Regulation (EC) No 1005/2009 with regard to the critical uses of halons in new equipment (2016/CLIMA/007)

Adoption of Commission Regulation


Standardisation request support of Regulation (EU) No 517/2014 on fluorinated greenhouse gases (PLAN/2016/412)



Main expenditure outputs Output Indicator Target 5 procurement contracts


Specific objective 3: Further decarbonisation of the transport sector in the EU through development and implementation of harmonised policies (in cooperation with other DGs like DG MOVE, GROW,...)




Post 2020 light vehicle CO2 Regulation(s) (2015/CLIMA/019)


2017 Q4 2017 Completed


2017 Q4 2017 Completed

Heavy Duty Vehicles CO2 emissions




monitoring system (2015/CLIMA/018)



Evaluation of Fuel Quality Directive 98/70/EC (2015/CLIMA/021)

Publication of the Evaluation SWD


Commission Delegated Directive introducing lifecycle greenhouse gas intensity default values (2016/CLIMA/022)

Adoption of the Commission Delegated act

Q4 2017 Planning stage – postpone to Q3 201848





Specific objective 4: Increased resilience of EU society against the effects of climate change via effective support to MS respecting the subsidiarity principle (adaptation)




Evaluation of the EU Adaptation Strategy (2016/CLIMA/011)

Publication of the Evaluation SWD49

Q4 2018 In progress – to be adopted by the 3rd quarter 2018





Specific objective 5: Optimisation and sound and efficient management of financial incentives to support the innovation-based shift towards a low carbon and climate-resilient EU economy (through the EU budget and the (ETS) funds) (in cooperation with all DGs)

Related to spending programme(s) LIFE Regulation and EU budget, ETS funds outside the EU budget


48 It was delayed because this Delegated Directive has to be align with the outcome of the Renewables Energy Directive,

currently under negotiation. 49 The main output expected to be delivered by the end of 2017 is the draft final report of the evaluation support study.



35 Traditional Action grants supporting mitigation/adaptation plans, promotion of innovation, resilience to climate change, supporting implementation of EU law

35 grant agreements signed Mid-2017

2750

3 Integrated projects (IP) to improve the climate knowledge base

3 IPs signed Mid-2017

4 IPs signed since 2015

1 Technical assistance project supporting MS

1 project signed Mid-2017 0 projects signed

30 Operating grants supporting NGO's

30 prep action signed 31 December 2017

31 prep action signed

7 Financial agreements under the financial instruments

7 operations signed 31 December 2017 10 operations signed


5 contracts signed 31 December 2017

3 contracts signed

Specific objective 6: Implementation of the Energy Union Strategy towards an enhanced climate and energy governance mechanism including streamlined reporting and planning post 2020 (coordination with DG ENER)






Specific objective 7: Ambitious contribution to effective international negotiations (including bilateral cooperation and climate diplomacy) on climate (UNFCCC, Kyoto, Paris, ICAO, IMO) and ozone layer (Montreal) related matters (in cooperation with other DGs and the EEAS:

Related to spending programme(s) International conventions and agreements



EU Membership in Global Green Growth

Adoption of a recommendation for a Council

Q1 2017 Completed

50 The final number of awarded projects depends on the amount needed per project and the final decision of the LIFE

Evaluation Committee. The 35 Traditional Action grants were an estimation.


Institute (GGGI) (2016/CLIMA/013)

Decision

Main expenditure outputs Output Indicator Target

Latest known results (situation on 31/12/2017)

Subscription to 5 international conventions (UNFCCC, ITL, Kyoto, Vienna and Montreal protocols)

5 annual payment of the fee to the secretariat

Q2 2017 Completed


3 contracts signed 31 December 2017 21 contracts signed51

Assessment of the quality of the data of performance tables

All DG CLIMA indicators contained in the performance tables are considered reliable since they come from internationally recognised sources or are subject to a well-established and documented data quality process.

51 The significant difference between the number expected and the final number of signed contracts is due to the nature

of some international subscription payments, which divide the amount committed in different contracts. Moreover, the EU took part in serveral conferences and workshops not foreseen at the beging of 2017.