Review of Arrangements for Implementation of Welsh European Structural Funds 2014 - 2020

Not the most snappy title, but perhaps one of the most important documents to be published by the Welsh Government  via the Welsh European Funding Office in this Assembly term. the setting out of Welsh Minister’s thinking on how the latest European funding will be spent in from 2014 onwards.

It makes one strategic and thirteen operational recommendations below and the full report is here

Strategic Recommendation

R1 The development of an Economic Prioritisation Framework (EPF) that allows the identification of the areas in which Structural Funds can contribute in the most effective and synergistic way to overall Welsh Government economic development policy. The EPF should be constructed at a level of detail sufficient to provide guidance to potential project sponsors, to inform decision making at the time of project selection and to support the management of implementation. WEFO should be responsible for the production of the EPF drawing on relevant input from Welsh Government economic strategy development and bearing in mind any specific obligations in relation to EU policy and Structural Funds regulations.

Operational Recommendations

R2 Timely publication of the EPF as part of the process of developing the implementation strategies for the next round in order to allow for meaningful discussions on project development. WEFO should encourage 8and facilitate wide ranging discussions with key stakeholders around their ability to contribute to delivery of the EPF objectives.

R3 Use of the EPF to facilitate the development of project appraisal process that more effectively discriminates between compliance risk and business risk. This may involve the creation of a two phase mechanism in which eligibility is seen in the context of a gateway function and in which the EPF subsequently informs a selection process based on fit with its priorities.

WEFO should consider this recommendation in light of its existing processes and in light of its ongoing consultations with stakeholders.

R4 Use of the EPF in conjunction with experience gained in the current round of Structural Funds programmes to establish a phased programme for the next round. This might comprise an initial group of strategic backbone projects which demonstrate clear potential for early delivery of key objectives of the EPF with subsequent phase(s) providing the ability to react to changing economic circumstances, to fill gaps in the economic landscape or to facilitate the use of alternative funding and project selection mechanisms. WEFO should use their experience from the current round, in conjunction with the EPF, to identify projects which might form part of the backbone and initiate appropriate discussions on implementation.

R5 Encouragement and support for the creation of credible regional and thematic planning mechanisms able to provide input to the EPF, for example on the identification of demand drivers, and to provide support for post approval delivery mechanisms. WEFO should undertake appropriate consultations on the structure and operation of these mechanisms.

R6 Consideration of mechanisms that might provide more effective support to projects in their early delivery stages. Such mechanisms might include the use of mobilisation phases and the development of real time monitoring processes. The potential contribution of the regional and thematic mechanisms referred to in recommendation 5 should be explored.

R7 The development of a working model of the Structural Funds delivery system providing a real time picture of progress against plan at a strategic level.

R8 Formal adoption of a portfolio management approach to the next round of Structural Funds in which an overall objective is established within the context of economic development in Wales as a whole and use of this approach in progress reporting.

R9 The ongoing processes of review of WEFO guidance to be considered in light of experience gained in the current round and of stakeholder input with a view to achieving continuous improvement of the guidance itself and also ensuring an adequate delineation between guidance (which WEFO can provide) and legal advice (which project sponsors must obtain themselves).

R10 Use of the experience gained in the current round to establish expertise and experience databases within WEFO, perhaps supplemented by appointment of experienced mentors, to ensure that WEFO staff have access to wide ranging accumulated knowledge to assist in their interactions with external stakeholders.

R11 Review, in conjunction with the European Commission and the Welsh Government, the risk assessment processes and resultant level of audit and evaluation work carried out to ensure, as far as possible, it is proportionate to the actual level of risk in projects.

R12 Consideration should be given at the appropriate time to whether WEFO might be more effectively located elsewhere within Welsh Government. These considerations should give particular weight to timing in light of the performance of the Structural Funds system in a future round.

R13 At an appropriate time the All-Wales Programme Monitoring Committee (PMC) should be asked to consider its future role within the statutory limits of its function.

R14 Encouragement should be given to the continuing efforts to examine integration of funding streams in order to achieve increased effectiveness 10and impact in a future round of Structural Funds. Consideration should be given to supporting integration through common management and process systems and common governance perhaps through an expanded role for a future PMC. 

Any source