ESIF Programme Monitoring Committee evaluation strategy update paper: May 2022

Purpose of paper

This paper provides an update to the work being undertaken in relation to the revised monitoring and evaluation strategy as approved through written procedure in March 2020.

Members should be aware that document was updated in May 2022 to reflect the current delivery timetable however this is yet to be added to the website; a summary of the timetable is included below:

• ex-ante (completed)
• Youth Employment Initiative 1 (completed)
• Youth Employment Initiative 2 (completed)
• mid-term (reported to PMC in May 2017)
• delivery structures and partnership working within ESF and ERDF programmes (completed in February 2022)
• the effect of funding in Highlands and Islands region (completed in March 2022)
• smart growth and/or inclusive growth evaluation (started May 2022)
• low carbon thematic evaluation (scheduled to commence in September 2022)
• ex-post (2023/2024)

Decisions required

This paper provides the Programme Monitoring Committee (PMC) with an update - no decisions are required.

Background

Members will be aware that impetus for monitoring and evaluation are underpinned by requirements of the European Commission (EC) and the principles of on-going review as part of effective programme management. The Common Provision Regulation (CPR) states “(evaluation) shall be carried out to improve the quality of the design and implementation of programmes, as well as to assess their effectiveness, efficiency and impact”.

The decision of the UK to leave the EU also places the programmes in a changed environment; however, assessing the existing programmes provides an opportunity to inform the development of future replacement programmes helping to ensure their success.

Evaluation of delivery structures and partnership working

In July 2021 the tender requirement for the evaluation of delivery structures and partnership working was advertised on Public Contracts Scotland. Following an evaluation by Cathy Cacace (Head of Structural Funding Programmes), Christine Mulligan (Skills Development Scotland), Ryan Gunn (Governance and Stakeholder Team Leader, Scottish Government) and Susan Tamburrini (Head of Performance, Scottish Government) EKOS were appointed to carry out the work in September 2021.

EKOS completed their report in February 2022 and the document was published on the Scottish Government website shortly afterwards. Conclusions and recommendations from the report continue to be reviewed and, where possible, used to inform improvements for the current programme. Notable conclusions include:

• funding commitment for both ERDF and ESF Programmes is very high (88% and 101% respectively)
• programmes continue to lag behind significantly in terms of financial expenditure claimed (ERDF 28% and ESF 25%)
• progress has been made during 2021 that will help improve claim quality and speed up the claims process over the remainder of the delivery period (e.g. training for Lead Partners, recruitment of additional MA staff, training)
• flexibility within the programme to adjust the allocation of resources across the programme priorities
• claim backlogs continue to exist resulting in under-reporting of financial expenditure and performance

2014-2020 European Structural Funds Programme (Highlands and Islands region)

In August 2021 the tender requirement for the 2014-2020 European Structural Funds Programme (Highlands and Islands) region was advertised on Public Contracts Scotland. Following an evaluation of the tender by Angus MacLeod (Policy Officer, Highland Council), Robin Clarke (Head of Policy, Highlands and Islands Enterprise) and Ryan Gunn (Governance and Stakeholder Team Leader, Scottish Government) EKOS were appointed to carry out the work in November 2021.

EKOS delivered their final report in March 2022 and this is now available on the website. The work undertaken by EKOS is crucial to understanding how the programme has performed for the Highlands and Islands.

Conclusions focus on the impact of the programme on the Highlands and Islands, its effectiveness in addressing specific regional needs, legacy and lessons as well as a summary of its strengths and weaknesses. Similarly to the previous report conclusions and recommendations continue to be under review.

2014-2020 European Structural Funds Programme (smart and inclusive growth evaluation)

In March 2022 the tender requirement for the smart and inclusive growth evaluation was published on Public Contracts Scotland. Following the evaluation of submitted tenders EKOS were once again successful in their bid. The initial project initiation meeting has taken place and EKOS have presented their draft programme for delivery.

Themes of the research will include a comparison of the different levels of support required in Lowlands and Uplands (LUPS) and Highlands and Islands regions; the different outputs and impacts experienced by SMEs in both regions; the level of flexibility required in funding programmes to benefit SMEs; and how the ESIF funding has integrated within wider SME policy and support.

As these themes are voluminous and technical in nature it may require significant input on the part of Lead Partners (LP) and Delivery Agents (DA) to gather their responses when asked to contribute towards the study. Members are asked to fully support and promote the aims of the study.

An update was issued to all LPs to introduce and raise awareness of the evaluation and communicate its aims and objectives.

2014-2020 European Structural Funds Programme (low carbon thematic evaluation)

Members may recall that the smart and inclusive and low carbon evaluation were scheduled to run concurrently. The tender exercise however did not result in a suitable candidate being selected and the evaluation is now schedule to be advertised in August 2022 with a start date following in September 2022. The MA will review the tender documentation prior to advertisement to ensure suitable candidates are available.