Joint Reference Group – report of the first year of operation

The 5th Annual Working Group established a Joint Reference Group (JRG) to complement existing dispute settlement mechanisms and to address FAFA related issues of a systemic nature. The minutes of the 5th Working Group included the following:

"In order to complement the dispute settlement mechanism referred to in the minutes of the 3rd Working Group, it was agreed to put in place a further mechanism to address such issues in a more systematic manner. Given the absence of an effective mechanism to address problems, it was decided to establish a FAFA "Joint Reference Group", composed of EC and UN officials at appropriate levels, working together and meeting regularly as required, with a first meeting by end May 2008, to whom issues broadly relating to the day-to-day implementation of the FAFA can be referred.

The "Joint Reference Group" would analyse FAFA-related issues brought to their attention and provide advice – intervening as necessary with the services/agencies involved. The Group would also systematise the information received, and issue updates and information documents (such as "Frequently Asked Questions") which would improve consistency within the EC and the UN, and help to clarify and strengthen the partnership."

The JRG met on three occasions since the 5th Working Group – in May and October 2008 and in March 2009. The minutes of the first meeting of the JRG are attached as they serve to clarify the scope of activities of the JRG. In particular, it was decided that the JRG would operate as follows:

  • "The JRG is not going to replace existing channels and/or the role of the authorising officer.
  • The JRG will focus as a priority on systematic issues that require a ruling on interpretation of the FAFA. The objective is to facilitate the resolution of interpretation questions of a systemic nature and to provide guidance for these issues.
  • Any entity can submit “issue fiches” for the consideration of the JRG, however the latter will only consider for discussion and guidance those that fall within the scope and mandate described above (FAFA related and systematic issues). The fiches that are not considered by the JRG (for example those related to the management of a specific project) will be referred back to the entities directly concerned.
  • Decisions of the JRG may then form the basis for a FAQ."

In addition, this first meeting adopted a template/fiche for submission of issues for consideration. This template is attached to the minutes of the first meeting.

It was agreed that minutes of the JRG did not need to be published. Also the individual fiches discussed during the JRG are working documents only and their publication was not considered useful. Instead, the work of the JRG should lead to clarifications that are included in the set of Frequently Asked Questions (FAQs), which is published on the EuropeAid internet. Thus, the FAQs constitute the output of the JRG. The FAQs are annexed to this report and can be accessed at:

Over the course of the three meetings the JRG considered a total of 18 separate fiches/issues. Some of these issues were brought to the attention of the JRG by Commission Delegations or operational services, whereas others have been suggested by various UN agencies. In summary the key issues discussed were as follows:

  • Reporting - late reporting by UN partners and deficiencies in reporting, excessive reporting requirements by the Commission, documents to accompany final reports
  • Exchange rate provisions – the rate to use on closure of the project and the rate to apply to recoveries of unspent balances
  • Ex post monitoring and evaluation requirements – rules on the conduct of evaluations and clarification as to the role of the UN in evaluations
  • Transfers between budget headings
  • How to deal with unspent balances of final grant beneficiaries
  • The role and functioning of the dispute settlement mechanism
  • Definition and clarification of multi-donor/joint managementconcepts
  • Final payments – calculation of the amount and clarification that a final payment cannot be held up pending a verification
  • Calculation of indirect costs
  • Interest accrued outside of joint management and the exchange rate to apply
  • Budget format and eligibility, in particular as they apply to results-based budgets

All of these issues, where they represented a problem of a systemic nature, or where a clarification was considered necessary, have been addressed in the FAQs.

Discussions that have taken place in the framework of the JRG have sought to seek solutions to problems that confront field and operational staff jointly and in an open and constructive manner,offering interpretations and explanations of the existing legal texts where necessary. Through the FAQs, the JRG has been able to ensure that staff throughout the Commission and the UN system have access to a clear and agreed position on some of the more technical aspects of the FAFA. Feedback from the field on the FAQS is positive and efforts will continue to ensure that the FAQS are continually updated and respond to operational concerns.

It is proposed that the JRG should continue to meet regularly between annual Working Groups. UN agencies and Commission services are encouraged to address issues to the JRG, using the template foreseen. Where an issue to be discussed concerns a particular agency or Commission service, those concerned are also encouraged to take part in the JRG discussions.