ESIF Programme Monitoring Committee evaluation strategy update paper: October 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.

As members are aware the strategy was updated in May 2022 to reflect the current delivery timetable detailed 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 (completed in September 2022)
• low carbon thematic evaluation (tender published on 5 October 2022)
• ex-post (2023/2024)

Decisions required

This paper provides the Programme Monitoring Committee (PMC) with an update on the evaluations completed and scheduled for completion in 2022. No decisions are required.

Background

Members will be aware that impetus for monitoring and evaluation are underpinned by requirements of the European Commission 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”.

Whilst the decision of the UK to leave the EU places the programmes in a changed environment; assessing the existing programmes structures and performance provides an opportunity to inform the development of any future 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. Notable conclusions included:

• 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

All figures correct at time of meeting.

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 region.

Conclusions focus on the impact of the programme on the Highlands and Islands, its effectiveness in addressing specific Highlands and Islands 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.

Themes of the research included 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.

The report was submitted by EKOS in September 2022 and the final report is expected to follow shortly. A separate briefing session to discuss the findings of the report is to be arranged shortly with further details to follow.

The conclusion focused on the numerous challenges faced by the programme both internal and external. However, what was clear throughout the evaluation and report was the important contribution European Structural Funds had played to economic and social policy in Scotland.

Lastly the evaluation report noted that, for all its challenges, European funding still allowed partners across Scotland to support more people and businesses than would otherwise have been possible. It has also enabled higher quality services over a longer time period, helping to create a certainty and continuity of service that few other funding courses can offer.

2014-2020 European Structural Funds Programme: low carbon thematic evaluation

The tender for the low carbon evaluation was published on 5 October 2022. A closing date of 19 October has since been extended to 26 October at the request of a potential bidder. This change was deemed prudent to ensure the highest quality of responses.

At the conclusion of the tender process the bid(s) will be assessed by the evaluation panel. The evaluation work itself is scheduled to commence at the end of October and conclude in January 2023. As before, the Managing Authority will organise a separate briefing session for PMC members to allow them to digest the findings of the evaluation before the report is published.

Evaluation strategy

Completion of the low carbon thematic evaluation will conclude all evaluations scheduled for 2022, as detailed in the evaluation strategy. The ex-post evaluation will commence upon the financial closure of the programme in December 2023.