Best Practice in Governance of Agencies A comparative study in view of identifying best practice for governing agencies carrying out activities on behalf

Best Practice in Governance of Agencies

A comparative study in view of identifying best practice for governing agencies carrying out activities on behalf of the European Union

Brussels, 29 January 2008

Committee on Budgetary Control of the European Parliament

Content

1. Study design

2. What are „best practices“?

3. Agency governance in the Member States

4. Agency governance at the EU level

5. Institutional design and the set-up of agencies

6. Management and steering of agencies

7. Agency accountability and transparency

Best practice in governance of agencies, 29 January 2008, Brussels 3

(1) Study Design

• good practices at national level transfer to EU agency governance?

• three analytical dimensions– institutional design and the set-up of agencies– management and steering of agencies– agency accountability and transparency

• Country sample: D, H, I, NL, PL, S, UK• national experts, documents & existing

studies, interviews, workshop


(2) What are ‚best practices‘?

• coherent framework for agency governance missing in all countries under study

• multiple principals, network accountability• complex interplay of institutional frameworks

at national level• different perspectives on what can be

considered as „best practices“


(3) Agency governance in the Member States: overview

• often long tradition of having agencies• large number of agencies & agency types• high diversity of motives for agency creation,

ministerial accountability & oversight• positive experiences with performance

contracting and reporting & increased management autonomy in several countries

• specific national patterns of parliamentary scrutiny and control of agencies


(4) Agency governance at the EU-level: overview

• different agency types according to mode of establishment with diverse tasks & functions

• increase of the number of agencies• key questions:

– institutional design and the set-up of agencies (7)– management and steering of agencies (6)– agency accountability and transparency (4)

• these issues are controversial also at national level


(5) Institutional design and the set-up of agencies

1. limited number of agency types– functions (quasi-regulatory, advisory, executive)– internal governance structure– external governance (accountability)

2. small management boards– Member State representation – relevant Commission DGs– relevant stakeholders– experts appointed by the EP



3. functions of management boards– budget proposal– annual work programme– approving the annual report

4. limited tenure of chief executives– appointed by „initial creator“ of the agency– parliamentary hearing of chief executive

candidate

5. competitive recruitment and rotation system for agency staff



6. criteria catalogue („checklist“) as precondition for agency creation and reform by „initial creator“ – objectives of the agency– internal governance structure– products, services, and key procedures– target group/clients/stakeholders of the agency– formal relationships with external actors– budget responsibility and financial planning– personnel and staffing policy



7. newly established agencies should be located in a Member State which until now does not host an agency

– different political dynamics of location decisions at national level (more agencies)

– no coherent national policies as to location criteria


(6) Management and steering of agencies

8. all agencies should have managerial autonomy (within a framework budget)– finances– internal organisation

9. all agencies should have autonomy regarding their personnel– integration of staff budget into the general budget

of each agency, shift between expenditure types– agency-specific human resources management



10. each agency should be subject to oversight by only one principal (DG or Council)

– other principals: consulting process– legal oversight– functional oversight in legally defined cases



11.all agencies should be governed by a yearly performance agreement– formulated between the agency and the

responsible Commission DG/Council– main objectives for the next year (limited

number)– financial framework– limited number of quantitative and qualitative

performance indicators– special tasks of the agency– way of reporting



12.performance agreements should be linked to the budget cycle– based upon regular negotiations between agency

and Commission DG/Council– public reporting

13.all agencies should have their own budget– published as part of the parent DG's budget– prepared and scrutinised as all other DG budgets


(7) Agency accountability and transparency

14.agency performance should be regularly scrutinised by all EP committees– detailed examination of agency performance

agreements, work programmes and annual reports

– notice and recognition of substance-related reports and other working products

– regular budget cycle– special investigations prompted by irregularities– questioning of chief executives of agencies



15.agency performance should be as transparent as possible to the general public– all agency performance agreements and reports

have to be published and should be available in the Internet

– all annual reports should have a short and non-technical summary

– all reports should be easily linked with the appropriate budget items



16.agency performance should be regularly (and ad hoc) audited by the European Court of Auditors– traditional elements of financial management and

the proper use of public money– also administrative efficiency and effectiveness– include a rating of the financial management of

agencies



17. for each agency there should be a clearly defined appeals process

– appeal to the agency at a special appeals board– appeal to the European Court of Justice


Thank you very much!

Prof. Dr. Werner Jann

Tobias Bach

Julia Fleischer

Institute for Management and Organisation e.V. (IMO)

August-Bebel-Str. 89, D-14482 Potsdam, Germany

Tel.: +49 (0)331/ 977- 3241Fax: +49 (0)331/ 977- 3302

WWW: http://www.uni-potsdam.de/u/ls_verwaltung/index.htm

Email: [email protected]

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Best Practice in Governance of Agencies A comparative study in view of identifying best practice for governing agencies carrying out activities on behalf