GB/16/DEC/003 CONTENTS

Transcription

1 GB/16/DEC/003

2 GB/16/DEC/003 CONTENTS List of Abbreviations... 3 The ETF in brief... 6 Executive Summary... 7 A) Policy Highlights of the year...7 B) Key Performance Indicators (KPIs)...9 C) Key conclusions on management and internal control Key results and progress towards the achievement of general and specific objectives Achievements by strategic objective Achievements by thematic area Achievements by geographic region and country Achievements by Function Function 1 - Support to the EU Function 2 - Capacity Building Function 3 - Policy analysis Function 4 - Dissemination and Networking Management and internal controls Control results Human resources management Financial resources management Assessment of audit results and follow up of audit recommendations Assessment of the effectiveness of the internal control systems Conclusions as regards Assurance Declaration of Assurance ANNEX 1 ETF Organisation structure ANNEX 2: Human Resources ANNEX 3: Draft annual accounts and financial reports ANNEX 4: Materiality criteria ANNEX 5: Stakeholder Cooperation ANNEX 6: Governing Board ANNEX 7: Performance information included in evaluations ANNEX 8: Management of Financial Resources ANNEX 9: 2015 Management self-assessment of internal control effectiveness and organisational performance (CAF self-assessment tool) ANNEX 10: Carry forward actions and project results ANNEX 11: ETF Risk Register WP ANNEX 12: Monitoring Table for the implementation of the Collaboration Agreement Eurofound and the European Training Foundation (ETF) ANNEX 13 List of events and publications completed in

3 LIST OF ABBREVIATIONS ABB ACVT ADB AFD ALMPs ARLEM BC BTC CAAR CG COM CORELAP CPD CSP CVT DCI DG DG DEVCO DG EAC DG Employment DG GROW DG HOME DG NEAR DG REGIO DG SG DG TRADE DGVT DOL ETF EF ET 2020 EBPM EBRD EAfA EaP EC EEAS EESC EGPA EQARF EQAVET EQF ENI ENP ERI SEE ERPs EU Euromed FTE Function 1 (F1) Function 2 (F2) Function 3 (F3) Function 4 (F4) Activity-based budgeting Advisory Committee on Vocational Training Asian Development Bank Agence Française de Développement Active Labour Market Policies The EU's Assembly of Regional and Local Representatives British Council Belgian Development Agency Concolidated Annual activity report Career Guidance European Commission Conference of the Regional and Local Authorities for the Eastern Partnership Continuous Professional Development Country Strategic Perspectives Continuing vocational training Development Cooperation Instrument Directorate General Directorate General International Cooperation and Development - EuropeAid Directorate General Education and Culture Directorate General Employment, Social Affairs & Inclusion Directorate General Internal Market, Industry, Entrepreneurship and SMEs Directorate General Home Affairs Directorate General Neighbourhood and Enlargement Negotiations Directorate General Regional and Urban Policy Directorate General Secretariat-General Directorate General Trade Directors General for Vocational Education Distance and open learning Euopean Training Foundation Eurofound Strategic framework for European cooperation in education and training Evidence-based policy making European Bank for Reconstruction and Development European Alliance for Apprenticeship Eastern Partnership European Commission European External Action Service European Economic and Social Committee European Group for Public Administration European Quality Assurance Reference Framework European Quality Assurance in Vocational Education and Training European Qualifications Framework European Neighbourhood Instrument European Neighbourhood Policy European Reform Initiative of South East Europe Economic Reform Programmes European Union Euro-Mediterranean Partnership Full-time equivalent Supporting EU external assistance and policy dialogue with partner countries Supporting partner country capacity building in human capital development, policy in action and policy progress reviews Providing policy analyses through evidence-based analysis on country or cross-country policy reforms to support informed decision-making on partner country policy responses Disseminating and exchanging information and experience in the international community Page 3 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

4 G20 GDP GEMM GIZ HRD HCD ICT ILO IPA LuxDev MISMES MTDs MTP NEET NORRAG NQF OECD OSHA PRIME PSD QA RCC RCI SBA SD SEE SEECEL SME SRC TORs TVET UfM UNESCO VET VNFIL WBL YEP (agencies, regional platforms and councils, bilateral and international organisations and donors) Group of Twenty Gross domestic product Governance for Employability in the Mediterranean Deutsche Gesellschaft für Internationale Zusammenarbeit (German Agency for International Cooperation) Human resources development Human capital development Information and communications technology International Labour Organisation Instrument for Pre-accession Assistance Luxembourg Development Cooperation Inventory of migrant support measures from an employment and skills perspective Medium-term deliverables Mid Term Perspective Not in education, employment, or training Network for international policies and cooperation in education and training National qualifications framework Organisation for Economic Co-operation and Development European Union information agency for occupational safety and health Projecting reform impact in vocational education and training Private Sector Development Quality Assurance Regional Cooperation Council Regional Competitive Initiative Small Business Act School Development South Eastern Europe South East European Centre for Entrepreneurial Learning Small and medium-sized enterprise SRC Sector Reform Contract Terms of Reference Technical and vocational education and training Union for the Mediterranean United Nations Educational, Scientific and Cultural Organization Vocational Education and Training Validation of non-formal and informal learning Work Based Learning Youth Employment Programme Page 4 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

5 ETF PARTNER REGIONS AND COUNTRY ACRONYMS 1 South Eastern Europe and Turkey SEET Albania AL Bosnia and Herzegovina BA Kosovo 2 XK 3 the former Yugoslav Republic of Macedonia MK 4 Montenegro ME Serbia RS Turkey TR Southern and Eastern Mediterranean Algeria Egypt Israel Jordan Lebanon Libya Morocco Palestine 5 Syria Tunisia SEMED DZ EG IL JO LB LY MA PS SY TN Eastern Partnership Armenia Azerbaijan Belarus Georgia Republic of Moldova Ukraine Central Asia Kazakhstan Kyrgyz Republic Tajikistan Turkmenistan Uzbekistan Other partner country Russia EaP AM AZ BY GE MD UA CA KZ KG TJ TM UZ RU 1 These acronyms are taken from International Standardisation Organisation (ISO) and based on practice by the European Commission. 2 This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence. 3 'XK' is a code used for practical reasons and not an official ISO country code. 4 'MK' is a provisional code which does not prejudge in any way the definitive nomenclature for this country, which will be agreed following the conclusion of negotiations currently taking place on this subject at the United Nations. 5 This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue. Page 5 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

6 THE ETF IN BRIEF The European Training Foundation (ETF) is a specialised agency of the European Union (EU) tasked with helping 29 partner countries to harness the potential of their human capital through the reform of education, training and labour market systems in the context of the EU s external relations policy. The EU s external relations policies emphasise the need to increase opportunities in human capital development, including vocational education and training (VET) and enhance prospects for young people. The aim of which is to strengthen economic growth, social cohesion and political stability in the countries neighbouring the EU. Developing skills and supporting lifelong learning are central to the ETF s work to assist partner countries to improve the employability and employment prospects of their citizens. By supporting partnerships, participatory dialogue and policy ownership, the ETF helps countries develop lasting reforms that deliver enduring societal benefits. At EU level, the ETF cooperates with the European institutions, the business community, social partners and other civil society organisations. The ETF supports the European Commission and the European External Action Service (EEAS) in their programming, helping to ensure that EU assistance is accurately targeted and fits country capacities and priorities. The ETF engages in coordinated actions with EuroFound and Cedefop on the external dimension of relevant EU policies that contribute to human capital development. Internationally, the ETF collaborates with a range of stakeholders and exchanges information and lessons learned with relevant international organisations and donors. The ETF works with partner countries to create a framework for continuity and informed policymaking and implementation in uncertain and, at times, unstable contexts. Activities in the partner countries are delivered through seven strategic projects, identified through an analysis of EU external priorities and partner country needs and inspired by EU human capital development policies. These projects take into account the readiness and willingness of each partner country to engage in human capital development impactful transformation over a seven-year strategic horizon. Indicators measure the achievement of annual operational outcomes and the progress of reform in each partner country. In providing expertise to partner countries and EU institutions in the area of VET, skills and qualifications, the ETF reinforces the EU s role as a global actor. Page 6 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

7 EXECUTIVE SUMMARY A) Policy Highlights of the Year In 2015, the ETF contributed to the overall objectives of the European Union in the field of human capital development by projecting the external dimension of EU VET skills policies in seven thematic areas: Support to assistance in the context of EU external policies; Policy analysis and system wide progress monitoring (Torino Process); Skills and VET governance; VET provision and quality; Qualifications and qualifications systems; Employment, skills and mobility (including skills and migration); Entrepreneurial learning and enterprise skills. Policy highlights of the year include continuing support to the EU in its migration dialogue and Mobility Partnerships with neighbourhood countries. The ETF inventory on migrant support measures from an employment and skills perspective (MISMES) was published. Using an evidence-based approach, the ETF delivered recommendations to support the skills development and employment of migrants before leaving, during migration and upon return. The ETF worked with partner countries on analysing the phenomenon of young people Not in Education, Employment or Training (NEETS) in different contexts and strengthening their capacity to develop home-grown policy responses. The ETF, EuroFound and other international organisations shared their knowledge and experience on policies to keep young people in education, training or employment. In response to the need of partner countries to assess, anticipate and respond to changing skills needs, the ETF developed recommendations to help partner countries increase their capacity in skills matching. In South Eastern Europe, in cooperation with OECD, Cedefop and the ILO, the ETF analysed policies and practices on assessing, anticipating and responding to changing skills needs. Various methodologies were developed and used to improve the regularity, reliability and representativeness of data collection and evaluation alongside a structured approach to skills anticipation and matching. The ETF put these recommendations into practice in the Eastern Partnership in its Make it Match project (part of the EaP Platform II Work Programme ). This included supporting the establishment of a labour market observatory in the Republic of Moldova, a labour market information system in Belarus and a skills forecasting methodology in Ukraine. In 2015, the ETF launched three-year interventions in the field of work-based learning in the Eastern Partnership and continuing professional development of vocational teachers and trainers in South Eastern Europe, as well as mapping quality assurance in vocational education and training (VET) in the ETF s partner countries. Following the adoption of the Riga Declaration, the ETF started helping candidate countries to implement the Riga Medium-term Deliverables (MTDs) and support the monitoring and analysis of progress in these three policy areas. An ex-ante impact assessment methodology was developed to support countries in defining their policy options for the achievement of the MTDs. The methodology will be implemented in The ETF also supported the effective participation of the candidate countries in the European Alliance for Apprenticeships (EafA). Page 7 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

8 In School Development, the ETF organised the Central Asian VET Academy initiative to provide a regional platform for cooperation for vocational school directors to undergo continuing professional development and tackle other issues central to improving the quality of VET provision across the region. Fifteen communities of practice comprising vocational school directors and employers have been established. A conference in June 2015 highlighted the positive impact of the ETF s biennial assessment of the state of development of VET systems in the partner countries, known as the Torino Process. It showed that participating countries have made progress in the policy analysis pillars of evidence, the holistic view of VET, and participation and ownership. Since the first round of the Torino Process was held five years ago, all countries have made particular progress in participation and ownership. There is also an increasing awareness of the need to reinforce evidence processes as well as participation in policy analysis and monitoring. In qualifications, the ETF has continued to be a key partner in the international arena and provided expert support to the implementation of lifelong learning qualification systems in partner countries. Country progress indicators and the ETF policy stage indicators measure their progress in establishing and implementing national qualifications frameworks (NQFs); populating their NQF with qualifications; and establishing quality assurance (QA) mechanisms for NQFs. The developing capacity of partner country institutions and stakeholders is assessed against evidence of initiation of own reforms and the development of bodies to lead these reforms. The ETF worked with the countries of South Eastern Europe and Turkey on developing and implementing their NQFs and referencing them to the EQF. In 2015, the ETF co-published, together with its partners Cedefop and UNESCO, the second edition of the Global NQF Inventory, producing two of the thematic chapters and updated country chapters for 24 of the ETF s partner countries. The Qualifications Platform, an online forum managed by the ETF, has reached 700 members from over 40 countries. In response to the ETF s 2012 Small Business Act (SBA) assessment on how entrepreneurial learning was promoted in education in training, the Tunisian government set up a working group to determine how entrepreneurship promotion could be embedded in vocational training. The Working Group was technically supported by the ETF in 2015 starting with a review of existing training practice. The government borrowed on the ETF s good practice criteria and assessment framework for entrepreneurship in training. The objective was to identify excellence and innovation in the Tunisian training market. This intelligence is now the basis for a national charter for entrepreneurship in education and training, which will be launched during Global Entrepreneurship Week in November Meanwhile vocational trainers and curriculum specialists are working on a number of entrepreneurship modules to be integrated with the national curriculum. Locally referred to as Tunisification, the policy reform reflects a new confidence and commitment by the Tunisian authorities in their own good practice as a driver for change. Two regional SBA assessments (EaP and SEET, all countries) were completed in In 2015, the ETF received and managed 111 requests for assistance from the European Commission and Delegations compared with 82 in Some 20% of these were substantial additions to the work programme, requiring over three working days each. This increasing demand for ETF support confirms the ETF s strong performance and the value of its contribution to the EU as a global actor. EU services considered the overall quality of ETF responses to be either high or very high. Page 8 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

9 B) Key Performance Indicators (KPIs) The Performance Management Framework of the ETF focuses on the delivery of results rather than on activity or process management. In 2015, the ETF adopted the KPIs for the directors of EU agencies, integrating them with the already existing corporate performance indicators. These indicators measure the use of resources and management processes in the organisation and serve to ensure the efficient and effective delivery of results in organisational performance. In addition, indicators and targets were set to measure the impact of ETF activities against 20 results from the strategic projects in order to track the progress of the strategic objectives in the annual work programmes. ETF performance in 2015 can be summarised as highly effective in delivering its annual objectives while maintaining a high level of organisational efficiency. The five most relevant KPIs that reflect operational and organisational performance, compliance, human and financial resources management and areas directly targeted for improvement in 2015 are shown in the table below: Key Performance Indicator Trend Target Achievement rate Activity completion rate Commitment appropriation implementation Average vacancy ratio Audit recommendation implementation Timely payments Overall achievement of planned activities > 90% Rate (%) of implementation of Commitment Appropriations. Target 98% > 95% of posts filled of the annual establishment plan Rate (%) of external and accepted internal audit recommendations implemented within agreed deadline >90% >80% of payments executed within the legal/contractual deadlines 96% in 2015 (97% in 2014) 99.89% in 2015 (99.9% in 2014) 98% in 2015 (98% in 2014) 95% in 2015 (92% in 2014) 85% in 2015 (79% in 2014) Overall, the ETF s corporate performance is above target in the main five KPIs above. The activity completion rate in 2015 was 96%, (using an ABB methodology linking resources to the achievement of results in the implementation of planned activities during the year). Financial discipline and management has been maintained for commitment appropriation implementation at the previous high levels of 99% and the payments executed with the legal/contractual deadlines has significantly improved, as has the implementation of audit recommendations at 95%. The post-filling rate remained stable at 98% due to the upcoming post cuts within the overall obligation of 10% reduction. The ETF uses a results-based approach to measure the impact of its work in the partner countries. This follows the logic of an Impact Value Chain in which inputs and activities create outputs and outcomes, which contribute to intermediate and long-term impact in human capital development in the partner countries. Key results and progress towards the achievement of country objectives are summarised in Section 1.3 of this report. Page 9 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

10 The ETF s Impact Value Chain is aligned with the EU International Cooperation and Development Results Framework 6 to measure its contribution to the achievement of the EU development policy objectives. This comprehensive structure of objectives, indicators and targets enables the ETF to track and report on progress in meeting its strategic goals. The ETF s corporate results framework is comparable to frameworks of the European Commission and other international development actors. It also functions as an effective data collection system covering all three levels of the results framework: Level one tracks the development progress of partner countries in the field of HCD on the basis of partner country reporting through the Torino Process presented in the 2015 ETF Work Programme 7. This level covers key contextual education and labour market indicators (which correspond to broad development goals of partner countries themselves) that provide the evidence base for identification of partner country needs and broad orientations for ETF and wider EU policy interventions. These indicators are included the Torino Process reports and form the basis on which the priority areas of intervention are selected. Level two details outputs, outcomes and impacts and tracks the specific contribution of ETF interventions to human capital development in the partner countries. The ETF s results here rely on a sophisticated evidence-based theory of change linking the ETF s support and capacity building to policy learning and policy change in the partner countries. Through referring to changes in policies, local capacity and better delivery of public services, the level two indicators take forward the broader partner country policy outcomes presented in the first level. These indicators are defined in the detailed Strategic Project Implementation plans and in the Policy Development Stage Matrices for each thematic area presented in the 2015 ETF Work Programme 8 and reported on in Section 1 of this report. Level three captures the ETF s organisational performance: the use of resources and the management of processes, which are a prerequisite for the efficient and effective delivery of level two results. Key Performance Indicators (KPIs) are defined for the ETF as a whole to measure the achievement of its corporate goals. These include the KPIs for directors of EU agencies. The full list of indicators is shown in Section 2 of this report. 6 Commission staff working document Paving the way for an EU Development and Cooperation Results Framework, Brussels, , SWD(2013) 530 final, and Commission s staff working document Launching the EU International Cooperation and Development Results Framework Brussels, , SWD(2015) 80 final. 7 ETF WP2015 p ETF WP2015 Annex 4 Page 10 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

11 C) Key conclusions on management and internal control In line with the governance statement of the European Commission, the ETF conducts its operations in compliance with the applicable laws and regulations, working in an open and transparent manner to the highest professional and ethical standards. The 2015 annual review of the internal control system and organisational performance provided reasonable assurance to the ETF management as to the level of compliance with all internal controls, on the correct functioning of the systems in place and on organisational performance. The review highlighted the main strengths and the potential weaknesses of the systems in place and supported the establishment of an improvement action plan. In 2015, the ETF took measures to improve the efficiency of its internal control systems (ICS) in the area of leadership (ICS 1 Mission and Values; ICS 2 Ethical and Organisational Values; ICS 7 Operational Structure), people management (ICS 3 Staff Allocation and Mobility; ICS 4 Staff Evaluation and Development), strategy, planning and stakeholder cooperation (ICS 5 Objectives and Performance indicators and ICS 6), risk management and processes (ICS 11 Document management and ICS 12 Information and communication), as reported in Part 2 of this document. In 2015, the ETF used the resources provided by the EU to carry out its activities in due time, in appropriate quantity and quality against agreed benchmarks and targets. In addition, the ETF systematically examined the available control results and indicators, as well as the observations and recommendations issued by the Internal Audit Service and the European Court of Auditors. These elements have been assessed to determine their impact on the management assurance as regards the achievement of control objectives (see Part 2). In conclusion, the ETF s management has reasonable assurance that, in 2015, the agency has, overall, continued to implement a comprehensive system of internal controls, performance and results oriented management embedding risk management and ensuring a proportional approach to compliance and effectiveness of internal procedures and systems. Increasing effectiveness and efficiency In 2015, the results of the ETF s management of its human and financial resources were outstanding. They follow the positive trends of previous years in ensuring the full use of the funds made available to the ETF and resulted in an unused amount of only 1.85% of the total EU subvention to be returned to the European Commission in respect of 2015 activities. This is a very good result, considering that the threshold having an impact on budget negotiations is 5%. A new organisational structure came into effect on 1 January and together with the reengineering of internal processes and the reorganisation of the delivery of ETF activities, has helped to improve the efficiency and economy in the agency. The reorganisation successfully resulted in the focusing of ETF operations on seven thematic projects from some 45 country and thematic projects in 2014; it reduced the fragmentation of expert engagement in projects from 3.6 to 1; it reduced reporting lines from 2.5 to 1 and focused ETF work on a maximum of four thematic areas in 65% of countries. The focussing of ETF operational work into seven strategic projects led to a more systematic and strategic approach, providing a better basis for customising interventions to country needs, while at the same time ensuring a corporate quality approach in each thematic area. 9 See Annex 1 Page 11 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

12 Following on from the Making ETF more Strategic exercise in 2014, another analysis was conducted in 2015 with external consultants to identify the key corporate indicators for the ETF to measure its organisational and operational performance. The outcome was the adoption of 15 corporate KPIs together with a set of process and productivity indicators based on the key ETF processes. From these 15, a set of 5 KPIs have been selected in Section b) above, to provide a snapshot of the ETF performance in 2015 in the key areas of operational and organisational performance, compliance, human and financial resources management and areas directly targeted for improvement in The corporate KPIs include the recommended KPIs for directors of EU agencies and one indicator for each of the four function areas of the ETF s work: support to the EU, capacity building, policy analysis, and dissemination and networking. Inter-institutional tenders The ETF has continued its efforts to optimise the management of procurement. In response to the Common Approach adopted by the Interinstitutional Working Group on agencies in July 2012, it has increased its expression of interest in inter-institutional tenders and its participation in inter-institutional framework contracts in comparison to previous years. In 2015, 48 inter-institutional contracts were in use at the ETF. Page 12 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

13 1. KEY RESULTS AND PROGRESS TOWARDS THE ACHIEVEMENT OF GENERAL AND SPECIFIC OBJECTIVES The ETF s 2015 Work Programme 10 set three strategic objectives for the year against which targeted results were planned. A summary of the main achievements under each strategic objective and against its respective results follows, with a detailed description of achievements in the seven strategic project areas and the four functions. Section 1.3 contains summaries for each partner country grouped according to the four geographical regions in which the ETF works. 1.1 Achievements by strategic objective The results achieved by the seven strategic projects are grouped under the three annual strategic objectives. For each strategic objective, indicators and targets were set to support the achievement of results. Project implementation is tracked using a management information system in which annual plans are monitored and reported on every quarter. Overall, the targets were achieved for all indicators set for Annual Objective 1 To reinforce capacity for human capital development policy in the partner countries through the use of evidence based policy analyses in (a) VET system analyses (Torino Process and Projecting Reform Impact in VET initiative (PRIME)); (b) Updating the qualifications inventory; (c) Employability reviews in SEET, SEMED and EaP; (d) Small Business Act assessment in SEET and EaP; and (e) Support to the EC in (IPA, ENI or DCI) programming and project identification and formulation and in EU policy dialogue with partner countries. 1. Partner country policy reform processes are increasingly evidence-based, holistic and participatory, and take into account the results of the Torino Process 2. ETF priorities and activities and its contribution to EU assistance are informed by the results of the Torino Process 3. Strengthened capacities of stakeholders and institutions developing NQFs, dealing with labour market developments and entrepreneurial learning contribute to progress in respective policies and practice INDICATORS AND TARGETS No of participating partner countries: conducting self-assessments in Torino Process (70% by 2014) Countries participating in the inventory on NQF (80%) SBA assessments completed and recommendations issued in the ETF chapters ACHIEVEMENT Capacity reinforced of partner countries for policy analysis through the Torino Process. In 2014, 26 countries participated, out of which 17 conducted selfassessments: 65% Qualifications capacity - NQF inventory, all 24 partner countries were updated: 100% SBA assessments completed, recommendations finalised and sent for publication. 100% 10 ETF WP2015 Part III and Annex 8 Page 13 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

14 (100% in EaP) EC requests for employment analyses completed (100%) 100% (14 Employability fiches completed out of 14 requested) Annual Objective 2 To increase internal VET efficiency in the partner countries through (a) VET system multi-level governance, (b) quality assurance, (c) learning and teaching, and (d) support to the implementation and monitoring of related EC programming and projects 1. Participatory VET governance approaches with clear roles and responsibilities among actors, including employers, are planned/implemented/fully operational in selected countries (in accordance with the level of policy development); 2. Actors at sectoral and sub-national (regional/local level) levels use ETF activities and input to strengthen their role in skills development and in playing their role and function in the definition and implementation of modernised VET; 3. ETF contribution in the area of costing and financing of VET leads to improved use of resources in selected countries by focusing on costing and financing VET, in the context of a wellfunctioning governance system. 4. Development of systemic VET quality assurance in selected partner countries 5. Targeted ETF partner countries have started to develop policies and implementation strategies to promote work-based learning and the professional development of vocational teachers and incompany trainers. 6. The international debate on work-based learning, continuing professional development of vocational teachers and trainersand career guidance supports partner country development, with the active participation of the ETF. INDICATORS AND TARGETS Development of multi-level governance in VET and VET policies at regional level supported in Morocco, Tunisia and Ukraine EU VET quality assurance policy and tools adapted to the context of partner countries and 90 % of planned outputs in relevant projects completed i.e. handbooks, tools, information notes etc. Increase in networking and knowledge sharing amongst stakeholders at corporate conference (70% conference feedback) Work-based learning mapped in EaP ACHIEVEMENT VET policies at sub-national/regional level completed in Morocco, Ukraine (input to VET legislation + participation in the workshop); well advanced in Tunisia Target achieved VET quality assurance tools adapted and utilised in Belarus, Tajikistan and Bosnia and Herzegovina as well as SEMED through GEMM VET Provision & Torino Process 100% planned outputs achieved and 79% of TRP participants reported an increase in networking and knowledge sharing 100% of targeted countries in EaP finalised mapping of WBL practice and capacities for policy recommendations developed through Phase 1 of Regional Project. (apart from Russia, activity suspended due to decision of Page 14 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

15 GB) Annual Objective 3 To increase external efficiency of VET in partner countries through (a) qualifications, (b) employment and employability, (c) skills and migration, and (d) entrepreneurial learning and enterprise skills 1. Capacities of partner country actors to implement reforms of qualifications systems are strengthened, enabling partner countries to accelerate their reforms. 2. Increased use of tools and approaches (e.g. qualifications frameworks, VNFIL, sector skills councils, quality assurance systems, occupational standards) advised by the ETF to support the reform of qualifications systems. 3. Partner countries make progress through the stages of legally adopting, developing and implementing their NQFs. The four candidate countries progress with their implementation of the EQF, by developing and implementing their NQFs and referencing them to the EQF. 4. International policy discussions on qualifications, moderated by the ETF, influence partner countries. 5. Stakeholders increase their knowledge particularly about skills development, skills matching tools and evaluation tools and use this knowledge acquired from ETF analysis to reform education, training and labour market policies. 6. Stakeholders enhance their capacity to use labour market information to further analyse the links between skills and employment, to understand NEETs issues in their countries and act accordingly, to anticipate future skills needs, to tackle the issue of difficult youth transition from school to work, and to take into consideration the role of the informal sector from a skills perspective). 7. EC services have updated information on labour market related issues in PCs and use this information to draft their projects and programmes and to conduct their policy dialogue with the countries. 8. Knowledge and expertise on best policy measures to support migrants and returnees for legal circular migration consolidated and widely shared with the EU and relevant partner countries. 9. Increased awareness and inter-institutional coordination in selected partner countries for managing the skills dimension of mobility and the policy measures addressing the skills development/ skills use of citizens (including migrants and returnees). 10. Policy learning for partner country measures to support migrants/ returnees from the skills and employment perspective 11. An action plan for integrating entrepreneurship as a key competence within the national curriculum in Belarus and Lebanon, including implications for national qualifications borrowing particularly on experience and developments from the EC Thematic Working Group on Transversal Skills (entrepreneurial learning outcomes component). INDICATORS AND TARGETS 90% of project activities planned completed in: - Qualifications development - Development and use of labour market information for policy making Multi stakeholder involvement in 95% of relevant ETF project activities 90% of relevant project outputs completed i.e. best practice, flagship publications, and ACHIEVEMENT SP-QUAL: 92% of planned activities completed SPEMPL: SEET, EaP and GEMM 100% completed 96% of multi stakeholder involvement in corporate and regional events. 96% of planned activities completed and disseminated to stakeholders in partner countries. Page 15 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

16 disseminated to multi stakeholders in partner countries. 80% level of satisfaction from EU requests. 100% respondents assessed overall quality & timeliness of ETF support as good or very good; 72.8% as useful/very useful; 1.2 Achievements by thematic area Policy analysis and system wide progress monitoring (Torino Process) Highlights for the year include the international conference in June, which concluded the 2014 round of the Torino Process. This demonstrated its positive impact on the policy analysis pillars of evidence, holistic view of VET, participation and ownership in the participating countries (see table below). An assessment of where countries stand in relation to each principle shows that all countries have made progress in participation and ownership since the first round of the Torino Process five years ago. There is also an increasing awareness of the need to reinforce evidence processes and participation in policy analysis and monitoring. This assessment, which was set out in a report presented at the conference, has been the basis for defining improvement actions for the 2016 round of the Torino Process. Moreover, countries, such as Ukraine, Jordan, Palestine and Tunisia, where there was investment in capacity building in 2015 showed signs of developments in their monitoring systems and participation in the policy making cycle. In some countries, actions, such as training the members of the analytical centre, have led to increased ownership by the country of monitoring in general, and the Torino Process in particular. In Kazakhstan, this led to government legislation to include the Torino Process as part of the country s general monitoring system. In Russia, the participation of the ETF in several policy dialogue fora generated interest in using the Torino Process format at regional level for improving monitoring and participation. In 2016, five regions of Russia will implement the Torino Process at their own expense. In Ukraine, thanks to the Project Reforming Impact in VET (PRIME), which made an ex-ante policy impact assessment on optimisation of VET provision and involved all Ukrainian regions, all regions will participate in the 2016 round. In Tunisia, ownership of the Torino Process is high and there is an interest in adopting a subnational approach in a number of regions. It has been agreed that the next EU programme will further support this initiative. Concerning implementation and monitoring of the MTDs in the candidate countries, the ETF finalised a methodology for ex ante impact assessment and reporting to be applied in candidate countries as part of overall MTD monitoring. Furthermore, the ETF started developing its own proposal to support the development of a national policy network based on country-specific institutional arrangements that will be empowered to collect and process on an annual basis data and information for monitoring progress in VET. Much effort has gone into streamlining the battery of indicators for the next round of the Torino Process to ensure that it covers a feasible set of indicators that are key for other reporting processes (such as MTDs, Economic Reform Programmes (ERP), employment progress, etc.) Inputs have been provided to the EU reporting processes (SEET progress reports, ENP employability fiches). These products also serve other information purposes. Page 16 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

17 Policy analysis capability of the ETF partner countries by geographic region in the Torino Process SEET EE DCI SEMED Participation Evidence Holistic view of VET Ownership VET governance Good, efficient, participatory governance has continued to be the focus of the ETF s VET Governance Strategic Project area in Participatory VET governance approaches with clearer roles and responsibilities for actors are at the planning stage in four countries, namely Albania, Georgia, Serbia, and Uzbekistan. In Albania, through ETF expert input and coordination of a technical working group, a draft VET law was finalised and submitted to the ministry. In Georgia, a review of institutional arrangements identified gaps, and proposed improvement actions and specific capacity building for stakeholders. In Serbia, good progress is being made in defining the role of the VET council in relation to the ministry and the sector councils. In Uzbekistan, the authorities have worked with the ETF on developing forms of social dialogue that have a connection to skills development. The Governance Inventory is a new tool that the ETF is using for assessing governance progress in partner countries. Social partner organisations in partner countries have been mapped in order to strengthen cooperation and involve them in policy dialogue for human capital development. Regarding the sub-national dimension, strong practice has been developed in three countries, namely Morocco, Tunisia and Ukraine. In Morocco, the design of the role of regional actors has informed the national VET policy on regionalisation. Building on this, the ETF has been asked to support the definition of the role of the regional commissions for VET from In Tunisia, the ETF-supported VET regionalisation project in Medenine was concluded. The results achieved, including the design of the roles of regional actors and methodological tools were disseminated to more than 20 other regions and in 2016 the results will be used to prepare the Tunisian regions targeted by the new EU funded project IRADA, expected to start implementation in late In Kazakhstan, a study on education-business cooperation at local level was completed, and conclusions disseminated in five regions Page 17 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

18 Three new Entrepreneurial Communities have been identified and their added value to the local territory analysed and recorded through videos and publications to enable further dissemination in early Jordan is launching its own national entrepreneurial community network with ETF support. The lessons from the examples of good practice identified in the last two years have been integrated into the concept of smart territories, which builds on efficient local partnerships capable of scanning the innovative potential of a territory in a holistic and forward-looking perspective. A network of NGOs and CBOs in partner regions took part in a policy reflection with the ETF aimed at defining the strategic role of these organisations in VET. The network analysed roles and responsibilities of NGOs and CBOs in key functions within the VET policy cycle. This will feed into an ETF position paper on the role of NGOs and CBOs in VET policy cycle, which will inform decisions related to participatory governance in the partner countries. The new 2015 Entrepreneurial Community films for Georgia, Kazakhstan and Montenegro are available on the ETF YouTube channel here: goo.gl/kvtfam. VET provision and quality The three main policy areas of the VET provision and quality project (continuing professional development of VET teachers and trainers, work-based learning and VET quality assurance) became top priorities on the VET agendas of SEET countries after the adoption of the Medium-term Deliverables (MTDs) in Riga in June The two Neighbourhood regions and even Central Asia featured similar policy priorities to some extent. The three-year regional initiative on Continuing Professional Development (CPD) of VET teachers and trainers in SEET was launched with the completion of the mapping of CPD demand and supply and corresponding reports and publications, the building of regional and national CPD networks and the identification of demonstration projects. A school-based CPD initiative was completed in Montenegro and a position paper on CPD for TVET was drafted. In Work-Based Learning (WBL), a mapping of policies and good practice in the EaP and Kazakhstan was completed, followed by a peer-learning activity in innovative practices, and a pre-feasibility study on enterprise demand and potential for WBL in the EaP. The ETF provided capacity building on WBL for policymakers, training designers, employer representatives, intermediary bodies and VET managers. The ETF completed a review and analysis of VET Quality Assurance (QA) policies and measures in all partner countries, a position paper and a policy brief. The ETF also contributed to the EU community of practice on QA in VET (EQAVET) and provided support to QA activities in Bosnia and Herzegovina and Belarus, as well as to the GEMM project. The ETF has been very active in several Education and Training 2020 Thematic Working Groups on VET, such as the joint workshop on WBL. It has worked closely with the Inter-Agency Group (IAG) and with EBRD on a feasibility study in Turkey. As part of the School Development initiative, the ETF organised a Central Asian VET Academy, built a network of regional institutions providing continuing professional development of vocational teachers and trainers, and developed an action plan for consolidating the communities of practice in Kyrgyzstan, Kazakhstan and Tajikistan. Qualifications and Qualifications systems In Albania and Serbia, inventories of VET qualifications were completed. In the former Yugoslav Republic of Macedonia, a concept paper and a roadmap for the validation of non-formal and informal learning Page 18 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

19 (VNFIL) were drafted and presented to stakeholders. In Kosovo 11, training on the recognition of prior learning (RPL) was held for assessors, and new training modules were developed. A comparative study of the qualifications systems of Belarus and Ukraine was produced. In Ukraine, an inventory of professional qualifications and regulated professions was drafted and presented to stakeholders. In the SEMED network, qualifications for Mediterranean (all planned tools and documents (final common profiles, regional analysis report and analysis tools) were completed, validated by network partners, translated and printed. In addition, Egypt successfully took over the leadership of the network. In Morocco, a national institution was designated to lead the qualifications framework with a crossstakeholder composition, and a new permanent secretariat is being established. These new arrangements should reinforce and accelerate implementation of the NQF. In Bosnia and Herzegovina and in Azerbaijan, intended outputs were not achieved owing to external circumstances, namely the suspension of the governing Inter-sectoral Committee in Bosnia and Herzegovina, and the postponement of the adoption of the law on NQF in Azerbaijan. In Turkey, however, no significant progress was achieved in The ETF co-published the second edition of the Global NQF Inventory with Cedefop and UNESCO, producing two of the thematic chapters and publishing updated country chapters for 24 partner countries. Additionally, the ETF translated into Russian the country chapters for the partner countries. There was progress on a new study, but it was decided to broaden its scope to cover stakeholders and quality assurance in addition to the original planned themes of legislation and institutions. The online Qualifications Platform (QP) grew to more than 700 members and technical upgrades and layout improvements were also made. The Platform was used to host an online peer-review exercise of qualifications under the Q4M network. Furthermore, the ETF decided to establish a QP correspondents network, which will have its first meeting in the first quarter (Q1) Under the Eastern Partnership, the ETF delivered a regional NQF event in Batumi, Georgia aimed at knowledge-sharing and peer learning. A wide range of stakeholders, including industry, trades unions, higher education, VET and ministries was brought together to report on NQF progress and discuss approaches to implementation. The ETF is already following up on this by inviting experts from the countries to each other s national events. A specialised folder with legislation in Russian has been set-up on the QP. Feedback and findings from the event were used to inform planned outputs for Two TAIEX funded events were postponed to Q by the Turkish and Israeli authorities respectively for domestic reasons. The ETF will participate in the rescheduled events. In the last quarter of 2015, Albania, Bosnia and Herzegovina and Kosovo all joined the European Qualifications Framework Advisory Group. The ETF facilitated their participation in the EQF process by organising a knowledge-sharing workshop in Podgorica. In designing its interventions and outputs at national, regional and corporate level, the ETF used its own criteria-based assessments, such as the NQF policy stage indicators, the NQF Inventory and Context, Mechanisms, Outcomes (CMOs), as tools. These approaches and instruments made it possible to apply a consistent approach to qualification system building. Employment, skills and mobility (including skills and migration) The ETF launched several new activities at regional and country level during the year aimed at increasing stakeholders knowledge about skills development tools and measures and applying this knowledge to reform their VET and employment policies. Youth joblessness and young people not in education, employment or training (NEETs) were at the centre of knowledge and experience sharing in 2015, 11 This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence Page 19 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

20 inspired by EU strategic approach on youth employment promotion (i.e. Youth Guarantee schemes) and ETF partner countries specific contexts and needs. The ETF s three-year Make it Match initiative (part of the Eastern Partnership Platform II Work Programme ) helps countries build their capacity to generate relevant information on anticipation and forecasting of skills demand and how the information can be used to shape skills supply policies and develop new approaches - both quantitative and qualitative - for skills anticipation. The ETF supported the establishment of a labour market observatory in the Republic of Moldova, the development of a labour market information system in Belarus, and the development of a skills forecasting methodology in Ukraine. The ETF provided input for drafting progress reports for the SEET countries, such as the assessment of Employment and Social Reform Programmes in Turkey, Serbia, and Montenegro; the Economic Reform Programmes (all SEE countries); and the new IPA cycle programming on HRD in Turkey, Montenegro and Kosovo. It also produced employability country fiches for the neighbourhood countries (both the EaP and SEMED regions). It participated in the Union for the Mediterranean ad hoc Working Group on Job Creation and provided inputs to the European Commission Directorate General for Employment, Social Affairs and Inclusion for a final report on job creation. The ETF contributed to the Mobility Partnership scoreboards of Armenia, Azerbaijan, Georgia, Jordan, Moldova, Morocco and Tunisia, and provided comments on the draft Mobility Partnership (MP) Declaration between EU and Belarus, and the draft MP documents with Lebanon. The ETF s work contributed to the skills dimension of labour mobility being included in the implementation of Mobility Partnerships between EU and Partner Countries. The ETF also supported both partner countries and EC services in better management of migration through its work on Migrant Support Measures from an Employment and Skills Perspective (MISMES). Key results of this project, in particular the global inventory of migrant support measures from an employment and skills perspective and five case studies on skills-related measures for migrants in Armenia, Georgia, the Republic of Moldova, Morocco and Tunisia, were widely shared with the countries of the EaP and SEMED regions and at European level. To further increase awareness and exchange of experience about the effective policy measures for skills development for migration, the ETF organised an international conference on migration in Brussels under Platform 2 of the Eastern Partnership. Page 20 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

21 Case study key messages from the ETF s work on skills and migration In managing migration, a new approach is needed. Instead of treating migration through crisis management, attention sould be given to developmental perspectives. Migrants / refugees are not a homogeneous group. The diversity of migrants in terms of age, gender, education levels, work experience, country of origin, family situation and resources, entry status (labour migrants, refugees, asylum seekers, family unification, seasonal workers, etc) influence their needs and the way they can be integrated into the labour market. Actions to be taken include: Review of EU practices shows the importance of early assessment and mapping of migrant needs. Identify migrant skills and make them visible through skills audit and recognition and validation of prior learning Provide access to information on the needs of the labour market in the hosting countries. Provide guidance and counselling to understand suitable education and training opportunities and career/job options. Manage expectations in relation to economic inclusion. Avoid implementing exclusively short-term protectionist policies that might hinder talent mobility and better combine with the strategic, longer-term opportunities. In addition, stress the effective implementation of labour and migrants rights as foundations of the positive impact of talent mobility. Support local communities to develop in the context of refugees presence. Involve the private sector in the process Entrepreneurial learning and enterprise skills The Small Business Act (SBA) for Europe includes three priorities of specific concern to ETF partner countries: entrepreneurial learning, including youth entrepreneurship; training for women s entrepreneurship; and skills to help SMEs internationalise. The ETF supported countries in two regions (SEET and Neighbourhood-East) in completing the SBA assessments, tracking how policy in these areas is progressing and addressing the challenges. Responding to the ETF s 2012 SBA assessment on how entrepreneurship has been promoted in education in training, the Tunisian government set up a working group to determine how entrepreneurship promotion could be embedded in vocational training. The Working Group was technically supported by the ETF in 2015, starting with a review of existing training practice. The government borrowed on the ETF s good practice criteria and assessment framework for entrepreneurship in training. The objective was to identify excellence and innovation in the Tunisian training market. This intelligence is now the basis for a national charter for entrepreneurship in education and training which will be launched during Global Entrepreneurship Week in November Meanwhile, vocational trainers and curriculum specialists have started working on a number of entrepreneurship modules that will be brought into the national curriculum. Locally referred to as Tunisification, the policy reform reflects the Tunisian authorities renewed confidence in and commitment to their own good practice as a driver for change. In South Eastern Europe, the ETF helped the government of Bosnia and Herzegovina to develop a national strategy on entrepreneurial learning. In Montenegro, it supported the development of a national partnership to promote entrepreneurial learning, looking at the role and contribution of the stakeholder institutions. The ETF also formed part of a team of international experts mobilised by the European Commission to build a European Entrepreneurship Competence Framework. The framework provides entrepreneurial Page 21 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

22 learning outcomes to reform curricula and build education and training systems that support competitiveness and employment. 1.3 Achievements by geographic region and country This section highlights some examples of different activities carried out in the four geographic regions. South Eastern Europe and Turkey (SEET) In the SEET region, the ETF continued in 2015 to support countries with education and training reforms in line with the EU Enlargement Strategy, the EU 2020/SEE 2020 strategy, the Education and Training 2020 policy objectives and targets and the Bruges/Copenhagen process for enhanced cooperation in VET. The key challenges identified refer to shaping national policies and overcoming barriers to implementation, addressing skills gaps and mismatches, providing attractive VET relevant to the labour market and fostering regional co-operation. The ETF has contributed to these efforts mainly through the following actions: Providing expertise input to the bilateral policy dialogue through analytical reports, participation in policy dialogue meetings and comments on progress reporting for all countries. Supporting candidate countries in the implementation and monitoring of a new set of medium term deliverables (MTD) in VET for the period following the 2015 Riga Declaration. Encouraging all countries to enhance the responsiveness of skills generation systems to labour market demands through a global stocktaking initiative on skills anticipation and matching mechanisms in cooperation with OECD, ILO and CEDEFOP. Fostering quality teaching and learning processes and, in particular, the professional development of VET teachers and trainers through stocktaking of good practice as input to mainstream reforms. Providing expertise input to NQF implementation in the countries of the region in order to develop relevant qualifications as a trusted way of demonstrating competence to perform a job. Encouraging regional cooperation and dialogue through expertise input and sharing with regional platforms like the Regional Cooperation Council (RCC), the Education Reform Initiative of South Eastern Europe (ERISEE) and the South East European Centre for Entrepreneurial Learning (SEECEL). Page 22 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

23 Country Achievements Albania Following the adoption of the National Employment and Skills Strategy, the responsibility for vocational schools was transferred to the Ministry of Social Welfare and Youth, which is now responsible for the entire VET system for both young people and adults. The ETF brought the issue of creating a single legal framework for initial VET and adult training onto the Government s agenda. The aim is to create synergies with and share resources between the different VET subsystems. In addition to the support given to draft the new VET legislation, the ETF also provided comments on a new law on crafts, and amendments to the law on employment promotion. All new laws will be completed and forwarded to the Parliament in one package in In addition, at the initiative of the ETF, an official task force was set up to implement the Albanian qualifications framework and an action plan was agreed on. Albania signed up to the European Alliance for Apprenticeships, signalling its commitment to create more and better apprenticeships. The ETF supports the country s effective participation by identifying gaps in policy and legislation and ways to engage better the private sector in initiating work-based learning. The ETF also supported Albania in strengthening its approach to entrepreneurial learning through the SBA assessment and provided intelligence and insight into the continuing professional development of VET teachers and trainers. Preparations started for the implementation and monitoring of the Riga Medium-Term Deliverables. Bosnia and Herzegovina The ETF supported the further development and finalisation of the skills strategy for Bosnia Herzegovina, drawing on the results of FRAME Policy Skills 2020 and involving all major stakeholders. The draft strategy is ready for endorsement by the Council of Ministers. The ETF also supported participation in the 2015 assessment of the Small Business Act for Europe, highlighting progress made in the education areas of the Act, providing recognition for work in entrepreneurial learning and enabling further policy momentum in this area. Progress was made on the development of a qualifications framework, resulting in the endorsement of an action plan for its implementation. The ETF worked with stakeholders to identify opportunities for Bosnia and Herzegovina to participate in the European Quality Assurance in Vocational Education and Training network (EQAVET), in the context of the European Quality Assurance Reference Framework (EQARF). Initial steps in continuing professional development of teachers and trainers were taken in 2015, with further progress expected in Page 23 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

24 Country Achievements former Yugoslav Republic of Macedonia The ETF provided expert advice to national authorities to complete the Concept paper for non-formal Adult education and informal learning and to develop a plan for the implementation of a system for validating non-formal learning. The ETF also supported an analysis of existing qualifications in VET; the development of an ongoing qualifications inventory; referencing the NQF to the EQF; and providing expert advice on referencing reports to be presented to the EQF Advisory Group in Policy support was given to the skills/labour market observatory, as well as strengthening the country s approach to entrepreneurial learning in the SBA assessment. The ETF also provided intelligence and insight into the continuing professional development of VET teachers and trainers. Preparations started for the 2016 round of the Torino Process, and for the implementation and monitoring of the Riga Medium-Term Deliverables. Kosovo The ETF continued to support the implementation of the Sectoral Strategy for Employment and Social Affairs. Through the development of a monitoring tool to define roles and responsibilities of different institutions, the role of the employment agency shifted, for the first time, from simple administrator of labour market issues to professionalization of staff to become more client and resource oriented. The ETF supported the development of a training module for providers to recognise prior learning. The aim is to expand the scope of the activity in view of a possible network of providers. The assessment of the SBA was an important step in establishing of stronger links between the education and business sectors. Participation in the regional project on continuing professional development of VET teachers and trainers helped to address a fundamental need of the education systems through mapping the system and providing concrete recommendations for follow up at national level. Page 24 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

25 Country Achievements Montenegro In 2015, a model for national partnership on entrepreneurial lifelong learning was agreed and proposed to the government. The proposed semi-independent body will enable increased engagement from partners to provide independent and more diverse input and promotion for entrepreneurial learning at the national level. The SBA assessment provided further evidence for this important initiative. Montenegro signed up to the European Alliance for Apprenticeships, signalling its commitment to create more and better apprenticeships. The ETF supports the country s effective participation by identifying gaps in policy and legislation and ways to engage better the private sector in initiating work-based learning. In-service teacher training supported improvements in the quality of VET. A policy dialogue between VET centres and the Bureau for the Development of Education Services, facilitated by the ETF, addressed formal evaluations of VET schools, quality assurance support and development processes and the identification of EQAVET requirements, all within the broader context of improving VET effectiveness. Preparation for the 2016 round of the Torino Process started as did implementing and monitoring the Riga Medium-Term Deliverables. Serbia During 2015, the ETF continued to strengthen its cooperation with key Serbian VET stakeholders by working with high-level public officials, social partners and other actors in a number of strategic areas mentioned below. The ETF provided direct support for the implementation of the national qualification framework, resulting in an inventory of existing qualifications and preparation for referencing with the EQF. The capacity of the Council for Vocational and Adult Education was increased to support the work of Sector Skills Councils to be established under its jurisdiction in The ETF provided intelligence and insight into the continuing professional development of VET teachers and trainers to support improvement in the overall quality of VET. The ETF conducted a study on digital and online learning and results were discussed in a webinar. The ETF also supported Serbia in strengthening its approach to entrepreneurial learning through the SBA assessment and in preparation for the introduction of a youth guarantee. Preparations for the 2016 round of the Torino Process commenced as did implementing and monitoring the Riga Medium-Term Deliverables. Page 25 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

26 Country Achievements Turkey The ETF worked with the Turkish ministries of labour, education and youth and the European Commission to bring together a wide range of stakeholders to identify ways to improve school-to-work transition in the country, focusing on young people not in education, employment or training (NEETs). In 2015, the Turkish authorities and the EU Delegation called on the ETF s expertise in thematic discussions under the Human Resources Development Operational Programme (IPA II OP HRD). This aimed to further develop linkages between education, employment and social cohesion, in particular by providing expertise on thematic platforms in the HRD sector (education and training, employment and social inclusion), focusing on the areas of lifelong learning, the Turkish National Qualification System, accreditation, quality assurance, NEETs, skills matching and entrepreneurial learning in VET. Turkey signed up to the European Alliance for Apprenticeships, signalling its commitment to create more and better apprenticeships. The ETF supports Turkey s effective participation by identifying gaps in policy and legislation and ways to engage better the private sector in initiating work-based learning. The Small and Medium Enterprises Development Organisation (KOSGEB) carried out the SBA assessment organised jointly by the European Commission, OECD, European Bank for Reconstruction, Development, the ETF and SEECEL. Participation in the regional project on continuing professional development of VET teachers and trainers helped to address a fundamental need of the education systems through mapping the system and providing concrete recommendations for follow up at national level. Preparations for the 2016 round of the Torino Process started as did implementing and monitoring the Riga Medium-Term Deliverables Southern and Eastern Mediterranean (SEMED) In the SEMED region, efforts have continued in 2015 to address youth employability as the main common challenge for all countries. This priority is confirmed by the review of the Neighbourhood Policy launched by the Commission and EEAS in November In skills development, the main challenges were identified by the partner countries with the methodological back-up of the ETF. These are the fragmentation of VET systems, the limited participation in governance of the sector and the low quality and attractiveness of VET in general. The ETF has contributed to address the related public policy risks, mainly through the following actions: Supporting DG-NEAR in the design of the main building blocks of a regional project on youth employment. The ETF has also proposed to DG NEAR a strategic approach in addressing youth employment challenges in the region. Supporting all SEMED countries, through GEMM regional project, on multi-level governance concepts through an important capacity building programme for policy makers and social partners as well as action-oriented initiatives through pilot projects on territorial governance, career guidance and counselling and skills needs analysis. Contributing to policy-making in the Union for the Mediterranean (UfM) High Level Working Group on Employment and Labour and drafting an Outcomes Paper. Page 26 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

27 Publishing and disseminating a SEMED regional paper on active labour market policies (ALMPs) in English, French and Arabic and employment policy notes for all SEMED countries. Sharing the outcomes of the six finalised guides on skills anticipation and matching (Tracer Study and LMIS guides) developed in cooperation with the ILO and CEDEFOP as the basis for the ongoing capacity building in Ministries and social partners. Governance for Employability in the Mediterranean: (GEMM) The ETF continued to implement this grant-funded project entrusted to it by the Commission under the authority of DG NEAR. The achievements in 2015 were the following: VET governance has been addressed by establishing a National Committee in each country, including in Egypt and Algeria, where participation in and real commitment to the project had been in doubt for most of The National Committees of all countries, except Egypt and Algeria, monitored and validated the governance mapping national reports, which were disseminated at local and national level and published on the ETF Website. The cross-country report was completed and published in June 2015 and translated into French (translation in Arabic will follow in 2016). GEMM facilitated the identification of the pilot projects in all countries, except Libya, which was suspended due to the political situation. Four projects were completed in 2015 (Israel, Morocco, Lebanon, Palestine) and four will be completed and disseminated in early 2016 (Tunisia, Egypt, Algeria, Jordan). Specific focus was given to the sustainability of the pilot projects. Five out of the eight projects have prospects of sustainability with support either from the EU or other donors (Morocco, Tunisia, Lebanon), or as part of national initiatives (Israel, Palestine). A compendium of the pilot projects describing the practices, tools, outcomes, and lessons learned will be published in early The ETF has developed a methodology for capacity building, focusing on participation, relationship building and shared ownership among different stakeholders. The methodology was implemented during the regional events in 2015 (study visit on quality assurance in the Netherlands in February; pilot project cross-country event in May; and the Regional event and study visit in Morocco in October). It is based on defining the specific role of participants and the responsibilities of their institutions for governance. Participants showed a strong interest in the topics proposed, considered them to be relevant and felt they had gained an increased understanding of concepts and approaches to multi-level governance and to matching and labour market information. This is in line with the capacity building needs assessment and continuous discussion with GEMM National Committees. Moreover, the participants highly appreciated the participatory and interactive approach, as well as the study visit and working groups, which were a source of inspiration, exchange and reflexion on conditions for effective partnerships, as well as an opportunity to discuss common challenges to the countries in the Southern and Eastern Mediterranean region. The GEMM Virtual Community now counts 106 members and includes all key project documents. In 2016, the ETF will ensure consolidation and dissemination of lessons learned at regional, national and local/territorial level for the different functions and actions. Page 27 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

28 Country Achievements 2015 Algeria Despite some difficulties and delays in implementation, the GEMM project achieved important results, in particular the pilot project, which involved the training of 13 training counsellors of the Fond national de l apprentissage et formation continue (FNAC) and the development of a related methodological guide and tools to identify training needs of enterprises and develop personalised training plans. This guide could become the reference document at national level for institutions providing competence development and skills development support to enterprises. Coordination and cooperation with the EU Delegation was strengthened, which resulted in a request for support formalised at the end of Egypt The ETF supported the EU Delegation in the revision and launch of the new TVET 2 programme. This included reviewing all the deliverables produced by the technical assistance provider and all the terms of reference produced by the Project Implementation Unit (PIU). Through the GEMM project, the ETF has developed a skills needs assessment survey to identify the gap between supply and demand for skills in the agro-food sector in the Mounefia region. The pilot survey should serve as a model to be scaled up within the framework of the third component of the TVET 2 programme, which focuses on transition from school to work. Israel The Israeli pilot project carried out under GEMM focused on the southern Israel region and was implemented at local level by schools in partnership with local business. It also links with the national policy development insofar as the GEMM national committee oversees its implementation and ensures its replication to other localities. The EU Delegation will use the work as a basis for further development of its cooperation with the Ministry of Education and Economy and Industry through TAIEX and Twinning. Finally, the German Embassy will consider how to support its roll out through German bilateral support. Upon request of the Ministry of Education and TAIEX, the ETF worked very closely with the Ministry and the Steering Committee on stakeholder discussions for the establishment of a National Qualifications Framework (NQF) in Israel. The ETF provided expertise support for a TAIEX NQF workshop in January Jordan The second and third phases of the the PRIME project were implemented. Various governorates of Jordan analysed the main obstacles for women to enter the labour market. The stakeholders discussed the findings and assessed the political and social feasibility of some policy options. Finally, the costing data completed the analysis of the policy options. The final seminar fine-tuned the proposals to be presented to the TVET Council in Implementation of the GEMM pilot project continued in the region of Zarqa. A new training course on retail trade was designed and implemented. Considering the success of the course (attractiveness for women and impact on employment), the Vocational Training Centre is currently envisaging its implementation in two other regions. Finally, the ETF completed the evaluation of the complementary actions of the EU- TVET programme for the EU Delegation. Page 28 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

29 Country Achievements 2015 Lebanon The ETF provided the EU Delegation with a comprehensive pre-identification report on the state of VET and Employment in Lebanon. This report includes, for the first time, data from the VET Directorate General. It will serve as an information base to inform potential new interventions in the field of VET and/or employment. Through the GEMM pilot project, guidance employment offices were opened in six public schools to support the school to work transition of VET graduates through information, guidance and orientation services. Guidance Employment Officers (teachers in the selected school) were trained throughout 2015 to take up their new positions. Their posts within the schools have been formalised through a Ministerial decree signed in May An action plan to mainstream entrepreneurship in general secondary and VET schools was finalised and submitted to the executive committee of the Entrepreneurial Learning project. In parallel, a mapping of initiatives in the field of non-formal entrepreneurial learning and support to entrepreneurship and enterprise development was also finalised and disseminated. Libya Morocco Activities in Libya were suspended given the security situation and political instability. Libya continues to participate to cross country activities under the GEMM project and corporate events. ETF support to the formulation of a VET programme helped to draw the attention of national policy institutions to the need for Government approval of the VET strategy, which was achieved on 29/07/2015. The ETF facilitated the discussion on the main policy priorities of the VET strategy by linking it to the discussion of a draft Matrix of Indicators for the new EU initiative to support the VET strategy. Visible progress was made in institution building for the National Qualifications Frameowrk (NQF), strengthening constructive dialogue on options for the effective architecture for the management of the NQF, and networking with EU partners and the EQF advisory group. The ETF facilitated and took relevant initiatives to support the newly appointed leading partner, the Presidency of the Government, in learning about international NQF practice, and in coordinating the national dialogue. Drafts of the full package of NQF institutional setting were developed according to schedule. In the Tanger-Tetouan region, the ETF helped the regional government, social partners and educators to work together to develop more effective matching between training and employment at local level. Stakeholders analysed supply and demand for jobs and skills in the automotive and logistics sectors, leading to recommendations for action. Page 29 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

30 Country Achievements 2015 Palestine The ETF has continued working together with GIZ on the development of competence based CVT qualifications. Building on the achievements of 2015 (a new competence based fashion design qualification), the ETF facilitated dialogue between the Khadoorie Centre of Competence and the regional employers association with the aim of identifying the skills gap in the local textile sector and developing a relevant CVT programme. The programme was delivered in autumn The lessons learnt from this exercise will be taken into consideration in the framework of the new EU TVET support programme, which has a component focusing on CVT. The ETF has continued its cooperation with GIZ and BTC to support to the establishment of a monitoring and evaluation function for the TVET sector. The main achievement of 2015 has been the establishment and capacity building of a network of monitoring and evaluation focal points covering all TVET providers. This network will serve as backbone for the new monitoring and evaluation model to be developed in Through the GEMM project, the ETF has supported the development of a tracer studies model for the TVET sector. The main results have been the methodology, an exit survey questionnaire, an employment questionnaire and a software for the implementation of the online surveys. Tunisia The ETF completed the design of the VET component of a new EU programme called IRADA to strengthen regional governance of the VET system. It was inspired by the ETF s experience in the Medenine region and the GEMM pilot project in Gabes. A four-year innovative project to reinforce regional governance of the VET system for better youth employability in the Medenine region was completed in November. The twelve tools developed under the project were disseminated to help enhancement of regional governance in other regions and the definition of a national regionalisation policy. A forum of practitioners and policy makers resulted in a framework to further promote entrepreneurial learning (EL) across the VET system. The ETF supported a nationally driven call for good practices on EL in the country. The results were presented and an action plan agreed to develop a national charter for entrepreneurial learning, a pedagogical Tunisian approach to entrepreneurial learning (including continuing professional development of vocational teachers and trainers and curricula development) and the setting up of a platform for exchanges. The Eastern Partnership (EaP) The review of the EU Neighbourhood Policy in November 2015 confirmed the priority areas in which ETF is active. The policy document specifically mentions the role of ETF in the areas of employment and youth. The ETF provided intensive support to the Eastern Partnership Platforms 2 and 4 in The outcomes of the assessment of the human capital dimensions of the Small Business Act (SBA) assessment were shared and discussed with the European Commission Directorate General for Internal Market, Industry, Entrepreneurship and SMEs, the OECD and the EBRD, as well as with the countries. National follow-up dissemination events are scheduled for the first half of On the whole, the SBA 2015 is recognised as having yielded more robust assessments with more evidence-based analysis of progress in SME policy implementation. A next step for all countries will be to build on discussions developed through the Page 30 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

31 SBA assessment workshops in promoting entrepreneurship as a key competence. Progress on SME skills is hindered by weak data and intelligence, which undermines the policy effort. The ETF supported the Directorate General for Neighbourhood and Enlargement Negotiations with a women s entrepreurship study carried out under Platform 4. More disaggregated data, capacity building for present and future women entrepreneurs and better access to finance are among the key recommendations. The conference on entrepreneurial learning was postponed to April 2016 at the request of the Platforms. The Eastern Partnership network for skills anticipation and matching (Make it Match) has gained strength in Following a meeting in June in Helsinki, where the EaP countries developed action plans for coordinated skills anticipation approaches, a meeting in Paris in November addressed progress with the action plans. Both meetings were opportunities for peer learning on skills anticipation methodologies and on the role of regional observatories. A conference on labour migration under Platform 2 discussed policy measures to support effective integration of returning migrants into the labour market and economy of their home countries. With support from Platform 4, the progress of national qualification frameworks (NQFs) in the EaP countries was shared in October in Georgia. All six countries are at different stages in the development of their NQFs. Implementation is still at an early stage, as most countries have not populated their NQFs with outcomes-based qualifications. The ETF will create more opportunities for policy sharing among EaP countries on this topic. Country Achievements 2015 Armenia The ETF s work on career guidance has increased the capacity of schools and employment services and has promoted education-business cooperation. It has also provided policy advice to the Ministry of Labour to include career guidance in the updated employment strategy. During 2015, the ETF successfully supported Armenia in the SBA assessment and ensured that the strong progress it has made in entrepreneurial learning was reflected in the results of the assessment. The ETF also provided substantial assistance to the European Delegation in preparing a Budget Support Programme for The ETF built the capacity of the major stakeholders to identify together the key indicators to be used in the conditionality matrix. Azerbaijan In 2015, the ETF focused mainly on implementing bridging activities for the Technical Cooperation Facility of the Annual Action Programme 2016 on the establishment of a labour market information system. The ETF advised the EU Delegation to support the Ministry of Labour in developing a vacancy data base system to complement the recently developed labour contract data base. The ETF has raised awareness of the main stakeholders about a common understanding of a labour market information system (LMIS). A working group, with the support of a local expert, worked on a road map for a LMIS and identified the main institutions to be involved in the process. This was coordinated with the Azerbaijani participants of the EaP Make it Match network on skills matching. The roadmap will be integrated into the Action Documents for the establishment of an integrated LMIS component of the Technical Cooperation Facility for Azerbaijan AAP The ETF has supported the design of a National Qualifications Framework in the country. An interdepartmental working group is now going to draft an action plan for implementing it. The Ministry of Economy effectively coordinated the implementation of the Small Business Act (SBA) assessment in Azerbaijan. The evidence base for the assessment has improved substantially. Page 31 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

32 Country Achievements 2015 Belarus The ETF conducted a review of the national qualifications system in the context of the design of the new National Qualifications Framework. The report was reviewed by experts on both VET and higher education. The findings were disseminated among all key stakeholders whose feedback was generally positive. The stakeholders identified common challenges to developing a lifelong learning framework. Belarus accession to the Bologna Process in May 2015 and the upcoming EU support in VET and employment opened new opportunities for the Belarusian education system to benefit from international experience and align its reforms with those taking place in the EU and neighbouring countries. Georgia In recent years, Georgia has enjoyed generous donor support and international expertise in reforming its VET and labour market systems. The ETF has strengthened its position as reference for the Georgian government in strategic issues such as the implementation of the National Qualifications Framework (NQF), monitoring of progress in VET reform (through the Torino Process) and governance of the VET system, in particular institutional arrangements, legal framework and cooperation with social partners. The ETF has provided advisory and methodological support to the EU Delegation and European Commission services to ensure that EU interventions supporting Georgian reforms in the area of VET and employment are of adequate quality and in line with the EU policies in these domains. In 2015, the ETF has carried out a Review of Institutional Arrangements (RIA) jointly with the Ministry of Education and Science (MES), leading to recommendations for efficiency gains in the institutional infrastructure for VET. The review contributed to redefining the role of social partners in the policy dialogue and policy implementation and recommended strengthening the monitoring and quality assurance functions in order to improve evidence-based policymaking. The ETF supported the Entrepreneurship Development Agency and the Ministry of Economy and Sustainable Development in analysing employment-enterprise skills development (through sector skills needs studies). The ETF also reviewed and provided feedback on key national policy documents, such as a Concept Note on Public-Private Partnership. Georgia hosted the regional NQF conference under Platform 4 of the Eastern Partnership. The ETF facilitated policy learning for policy makers, social partners and NQF experts on developments in the design and implementation of NQFs in the region. The ETF also facilitated a discussion among stakeholders on policies to address the situation of young people not in education, employment or training (NEETs). Georgia is one of the four countries selected in 2015 as an example of good practice in the context of the Entrepreneurial Communities initiative. The case is about a VET community college making partnerships with employers for practical training for all students, including adults and students with special needs. Georgia has also participated in ETF-led regional initiatives and projects such as the EaP skills matching network (Make it Match) and the Work Based Learning project. Page 32 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

33 Country Achievements 2015 Moldova During the year, significant progress was made in education reform in the Republic of Moldova against a background political instability and frequent changes of Government. There is evidence of commitment to reforming the Moldovan education system through the adoption of an Education Code, which establishes a Quality Assurance Agency for VET and HE and stronger involvement of social partners in education and training. The structural reform started with the approval of a master plan, kick-starting the restructuring of the VET system, with a commitment to network rationalization including the closure of low performing institutions/schools. Five Centres of Excellence for five priority economic sectors were nominated to become multifunctional training providers (several NQF levels, serving young people and adults). The ETF provided policy advice to the Ministry of education on implementing this concept. Progress has been made in involving the private sector and results were achieved with a modern work-based learning approach successfully piloted and extended to new local companies. A sectoral approach has been developed (with support of the ETF) and five sector councils are in various stages of development. The ETF and the Council of Europe have provided policy advice on the conceptual revision and update of the National Qualifications Framework (NQF) and have supported Moldova in complying with EU and international commitments, such as the Association Agreement, the Bologna process, the European Qualifications Framework (EQF), the European Higher Education Area (EHEA), the European Credit Transfer System (ECTS), and the European Standards and Guidelines (ESG) for quality assurance in the EHEA. The advice included the need to update and simplify the NQF concept and instruments within the context of lifelong learning; and to integrate VET with HE, and possibly CVT. This overcame the reticence of HE towards VET developments and opened dialogue on ways of increasing permeability and progression within the framework and the education system as a whole. The Small Business Act (SBA) assessment took place and results showed progress mainly in developing entrepreneurial learning by mainstreaming EL modules in the VET curriculum. Page 33 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

34 Country Achievements 2015 Ukraine In 2015, the European Commission s TAIEX programme supported the preparation of a new Law on Education, the main beneficiary being the Committee on Science and Education of the Parliament of Ukraine (Verkhovna Rada). The ETF provided support to the Ministry of Education and the Parliamentary Committee in the process of drafting the legislation, focusing on governance in education and training, financing of VET, the National Qualifications Framework (NQF), and lifelong learning polices. The ETF also gave advice on the VET law and its consistency with the Law on Education. The ETF provided support to the Ministries of Education and Labour, the Parliamentary Committee and the social partners for the implementation of NQF reforms. Beyond the active role played by the Federation of Employers, different stakeholders have been involved in this process to articulate the need for more relevant qualifications. The Ministry of Social Policy is leading the work on the recognition of non-formal and informal learning and is starting the development of occupational standards, complementing the work of the employers. The ETF has ensured that the NQF is properly addressed in the new laws on Education and on Vocational Education and has initiated the revival of an NQF Action Plan, the adoption of which will support the implementation of EU-Association Agreement. The ETF ex-ante impact assessment on school network optimisation conducted in Ukraine in 2015 analyses a set of policy actions to address specific policy challenges. The Projecting Reform Impact in VET (PRIME) methodology could help to overcome the challenges of the decentralisation process foreseen in the new legislation. The task was to design viable policy action to optimise VET provision based on an analysis of skills demand at national and regional level. PRIME involved three pilot regions: Dnipropetrovsk, Vinnytsya, and the City of Kyiv. The results were presented to all regional education departments, many of which realised for the first time the potential impact of decentralisation. Russia The ETF s only activities in the Russian Federation are those related to policy analysis and system wide progress monitoring (Torino Process). Six regions of Russia have expressed interest in carrying out a regional Torino Process in Central Asia Regional cooperation in Central Asia in 2015 was reinforced by the Joint Communiqué of the First Meeting of Ministers for Education of the Member States of the European Union and of the Central Asian countries in June in Riga. National qualification frameworks, quality assurance, employability and education and business cooperation are priorities for regional cooperation through the Central Asian Education Platform (CAEP) up to Latvia and Poland will support coordination of cooperation in VET and Higher Education respectively. The roadmap for cooperation under CAEP relies on the expertise of the ETF, which has contributed to the preparation of the NQF mapping. The ETF participated in the OECD Eurasia Competitiveness week in November. Recommendations for improvements to SME policy cooperation were made. Page 34 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

35 Country Achievements 2015 Kazakhstan While finalising its first Torino Process report in self-assessment mode in 2014, the Ministry of Education and Science, which was coordinating the exercise, became aware that the Torino Process can be used as a tool to benchmark national developments against international ones (especially developments within the EU), to monitor progress of VET reform, and to identify new development areas. The Ministry has tasked and resourced the Information Analytical Centre (IAC) to coordinate the Torino Process self-assessment in 2016 with a clear mandate to make work at national level more participatory. In autumn 2015, an IAC team was trained at the ETF for one week to prepare for the 2016 round of the Torino Process. Subsequently, the Centre organised a first discussion with VET Stakeholders in order to define joint interests and commitment for a participatory approach in saw the finalisation of the education-business cooperation study and its validation and dissemination at regional and national level. The study resulted in the definition of existing cooperation types between VET colleges and business, and showed how these can be associated with different education, transition and labour market outcomes for VET graduates. The study developed a number of recommendations supporting better education-business cooperation. It comes at a time when Kazakhstan is reviewing its approaches to work-based learning, not least through the introduction of the dual system. Kyrgyzstan Tajikistan Both the VET Agency and the Ministry of Education have made important steps in institutionalising a tracer study methodology at national level, thanks to close cooperation between the ETF and the Asian Development Bank (ADB) VET project. At the suggestion of the ETF, the Agency and the Ministry have issued instructions to all VET schools and colleges involved in the ADB project work (about 55 VET providers overall) to take part in the tracer study work and have issued guidance for the organisation of the tracer process. The ETF has also insisted on the involvement of both VET sub-sectors (IVET and CVET). Both the Agency and the Ministry have confirmed that they intend to institutionalise the approach by The ETF has advised the EU Delegation on the terms of reference for a new EU project on continuous professional development of teachers and school managers. The project can also make use of the survey of teachers carried out as part of the ETF s VET school development project. Tajikistan shared its policy developments at the Central Asian VET Academy in October. Tajikistan has also disseminated the results of the Torino Process Page 35 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

36 Country Achievements 2015 Turkmenistan The contribution of the ETF to the Turkmen International Exhibition and Scientific Conference in the form of a keynote speech and presentation under the VET/Education innovation theme helped to raise the visibility of EU and ETF support to VET in the country. It also provided opportunities to discuss with local stakeholders cooperation activities between the ETF and Turkmenistan in 2016 and beyond. The ETF has continued to advise the EU Delegation on two EU projects on Education and VET. One of the projects supports general secondary education and VET in further curriculum reforms and continuing professional development of vocational teachers and trainers. The start of the project has been delayed to Q3 of Uzbekistan The ETF has facilitated national dialogue on improving education-business cooperation and this activity will continued to be supported by other international actors, such as the British Council. This has included introducing VET stakeholders in Uzbekistan to methods used in the EU, such as sector skills councils. The 2014 Torino Process report was completed and plans are under way to implement the process in 2016 in the country. Support to the EU programming cycle was a major priority in The ETF supported the EU Delegation in defining the VET component of a large EUfinanced rural development project. Finally, Uzbekistan has increased its involvement in regional and international activities as evidenced by its participation in the Torino Process conference and the EU s Central Asian Education Platform. This was confirmed by the EU-Central Asian Education Ministers meeting in Riga in June Page 36 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

37 1.4 Achievements by Function The ETF also performs four functions: F1 support to the EU; F2 capacity building; F3 policy analysis; and F4 dissemination and networking. Function 1 - Support to the EU In 2015, the ETF continued to support the European Commission, responding to 111 requests from EC services and the EU Delegations in the partner countries. Of these, 69 were not foreseen in the ETF Work Programme 2015 and 43 were minor requests requiring less than three staff working days. Of the 69 unforeseen requests, some 20 were major requests requiring more than three working days each, drawn from all regions and themes. These included, for example, commenting on country studies of Higher Education provision and the labour market in Albania, Kosovo and Serbia; collecting and analysing performance indicators in budget support programmes in Neighbourhood TVET programmes; contributing to the formulation of a new TVET programme in Morocco; preparing terms of reference to develop the labour market information system in Azerbaijan; designing a new regional project on youth employment in SEMED; participating in joint monitoring missions on the EU project implementation in Tajikistan; and providing expertise input to design a new project on entrepreneurship education. Response to these unplanned requests required high flexibility and the redeployment of 0.75 FTE. A summary of the 111 requests follows: 35 for support to the EU project cycle of which:7 programming, 5 identification, 4 formulation, 12 for implementation and 7 monitoring and evaluation 5 for bridging and preparation activities 34 on EU bilateral policy dialogue, monitoring and reporting 8 on regional policy dialogue 4 on mobility partnerships 8 on provision of country-specific information 17 other requests They are distributed by region as follows: 43 were related to the SEET region 30 were related to the SEMED region 37 were related to the EaP 4 were related to Central Asia 4 were not specific to a single region Cooperation with regional bodies and platforms The ETF contributed to regional co-operation and dialogue through expertise input and sharing with regional platforms like the Regional Cooperation Council (RCC), ), the Education Reform Initiative of South Eastern Europe (ERISEE) and the South East European Centre for Entrepreneurial Learning Page 37 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

38 (SEECEL). This included informal exchange and coordination meetings with the regional platforms representatives, drafting country reports on entrepreneurial learning (SEECEL), and follow up actions to the meetings of the Directors General of Vocational Training (DGVT) and the Advisory Committee on Vocational Training (ACVT) towards the end of Depending on the thematic focus, the ETF participates in the Western Balkans Platform on Education and Training, which aims to assist the Western Balkans with their reform efforts in the area of education and training, as well as to increase regional cooperation. The ETF contributed to the project on Regional Support for Inclusive Education in South Eastern Europe, managed by Council of Europe, which had its Steering Board Meeting on 25 June The aim of the meeting was to discuss the developments of the project and next steps until closure November. The ETF also participated in the 2nd Regional Policy Network conference of the Joint EU/CoE Project on Regional Support for Inclusive Education held in Skopje on May The 70 members of the policy network of the project endorsed the regional policy recommendations on inclusive education and developed action plans for inclusive education at beneficiary level. The ETF also participated to the Union for the Mediterranean High Level Working Group on Employment and Labour described in detail in the SEMED regional report above. Cooperation with the EU Member States At the request of the ETF and based on the interest expressed either by the partner country or coming from analysis, Governing Board members or nominated experts from the EU member states with relevant experience contributed to the development of activities initiated by the ETF at corporate, regional or partner country level as follows: The GB members representing Slovenia and Romania contributed to the ETF Serbian authorities event on the The Council on Vocational and Adult Education within VET institutional settings -Roles and responsibility of the Council relative to other VET actors and stakeholders, Belgrade, 22 October The Governing Board members focused their interventions on the relationship between the VET policy making national authority and Ministries, Agencies, other VET national authorities in Slovenia and Romania; Experts from Germany, Italy and Sweden presented good examples of partnerships for skills development and/or skills recognition on the occasion of the ETF conference Skills dimension of migration: perspectives from the ETF partner countries, Brussels, September 2015 held under Platform 2 of the Eastern Partnership; The ETF also actively contributes to the activities developed under Platform 2 dealing with economic integration between eastern Partnership Countries and the EU and convergence with EU policies. In this context, the ETF organised the 2nd workshop of the Platform 2 project on Skills Anticipation and Matching in the Eastern Partnership in Helsinki on June 2015 with the support of the Finnish authorities. Together with experts from Portugal, they presented solid cases and supported the discussions among the representatives of the partner countries; The French authorities and GB member supported the organisation of the 3rd workshop of the Platform 2 project on Skills Anticipation and Matching in the Eastern Partnership in Paris on November 2015 on the topic of approaches to skills anticipation and matching experiences in the EU and Eastern Partnership region. The French experts presented their experience on labour market and skills observatories as well as methods for labour market and skills forecasting. Page 38 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

39 Cooperation with the EU institutions Structured dialogue with the Commission services was organised twice on 23 April 2015 and 7 October 2015 at the initiative of the Commission and led by the ETF parent DG EMPL. ETF and Cedefop actioned the cooperation agreement in the Work Programme with biannual knowledge sharing events and ongoing exchange of information and experience in particular on VET policy reporting, national qualifications including the global NQF inventory as well as on skills matching and anticipation. In 2015, ETF also ensured knowledge sharing with Eurofound on common thematic policy interests with particular focus on NEETS. Function 2 - Capacity Building Capacity building is part of all thematic projects, and it is embedded in project related activities directly targeting country stakeholders, policy development support actions and reform implementation. Capacity building is designed and measured using the Policy Development stages matrices for the thematic policy project areas (see annex 4 of Work Programme 2015). Two new Development stage matrices were designed during 2015 (one for policy analysis to serve the Torino Process planning and developments, and one for Skills matching and anticipation under the Strategic Project on Employment). In addition, the matrices on Qualifications and Qualifications systems were updated. As much of ETF capacity building is delivered through events, the ETF carried out an audit of events in late 2015 that has led to an action plan to improve the efficiency and effectiveness of ETF events under implementation in Function 3 - Policy analysis This function area is covered in section 1.2 Function 4 - Dissemination 12 and Networking The ETF supported its mission and reinforced the impact of its activities through a range of communication initiatives, including events and visits, publications, media relations, infographics, audiovisual production, digital and social media. Face-to-face communication during different events, involving more than 1,200 participants, helped build capacity of ETF partners and provided opportunities for policy learning and networking. They included small meetings for a few experts and large conferences. In 2015, the most important event was the Torino Process conference, which concluded the third round of the Torino Process. It brought together some 200 policy makers, practitioners, business leaders and experts from the ETF`s partner countries, the EU Member States and international organisations to take stock of the state of development of vocational education and training in the partner countries and discuss the next steps in the reform process. The conclusions of the conference were enshrined in the Torino Process Declaration, in which the participants reaffirmed their engagement to continue developing vocational education and training and skills through evidence-based policies. Some 50 publications and documents in various formats served to disseminate ETF knowledge and expertise. The ETF communicated actively through online channels. The website received over 1.5 million page views during the year. The ETF Facebook page saw a 50% increase in the number of followers reaching nearly 9,000 likes. Twitter was used for reporting live from ETF conferences and broadcasting information about the ETF and its expertise to some 3,000 followers. 12 Dissemination of good practices from the EU, at European or member state level at corporate, region or partner country level is outlined in the section above Cooperation with the EU member states. Page 39 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

40 The ETF significantly expanded its video production to make ETF knowledge and expertise more accessible to its stakeholders. The ETF produced more than 20 short videos that were watched 8,650 times on the ETF s YouTube channel and more on other social media. The ETF`s communication work was recognised by the industry s top international bodies: the International Association of Business Communicators (IABC) and the International Association of Facilitators (IAF). The ETF received two IABC Gold Quill Awards in 2015 for audio-visual communication in the Entrepreneurial Communities project and for stakeholder engagement in the ETF 20 th Anniversary celebrations, as well as an IAF Silver Facilitation Impact Award for internal communication in the ETF 20 th Anniversary celebrations. Page 40 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

41 2. MANAGEMENT AND INTERNAL CONTROLS This section assesses the effectiveness of ETF resources management and control processes in the interests of transparency, accountability and integrity. This assessment is a prerequisite for the Director s Declaration of Assurance. Resource management in the ETF takes place within the broader context of the ETF s performance management framework (PMF). This comprehensive framework ensure that ETF manages its performance coherently according to priorities set at planning phase and cascaded throughout the institution (see Annex 1). The PMF integrates management and control processes into a single system with consequent gains in terms of delivering quality results. The PMF enables the ETF to verify the efficiency and effectiveness of the organisation through the evidence based analysis of resources, costs and procedures thereby supporting a result-oriented discharge process. 2.1 Control results Overall in 2015 the ETF used the resources provided by the EU for the pursuit of its activities in due time, in appropriate quantity and quality. The results of ETF management controls of its operational performance are measured using the following Key Performance Indicators presented in Tables 1 and 2 below in line with the Indicators recommended for Decentralised Agencies and for job screening by the Commission and the Agencies Coordination network. In general, the KPIs show positive performance trends in all areas except staff engagement. For the first time in 2015, the ETF conducted the staff engagement survey using a common approach with 21 other EU agencies. The relatively low level of the staff engagement indicator, while all other indicators are above target, could be the result of the timing of the survey. It was carried out at the end of the year, a peak period for work and in the year where the ETF implemented a new model of delivery of projects in the partner countries. However, the ETF management is addressing carefully the survey messages in view of ensuring a better staff engagement in the near future. Actions have been scheduled for the beginning of 2016, including an all-staff day out meeting to reinforce a corporate common understanding of the ETF strategic objectives in 2016 and clarify the contribution of departments and individual staff members. Significant improvement could also be attributed the centralising of the finance and procurement functions within ETF under the organisational changes made at the beginning of For example during 2015, ETF achieved a marked increase in the number of payments paid within the legal/contractual deadlines from 79% in 2014 to 85% in The results of the job screening exercise in 2014 and 2015 demonstrate that the ETF through the reorganisation actioned in January 2015 managed to increase the overall allocation to the core operational job categories from about 47% to 50%. The increase in administrative support was caused by the temporary transfer of one staff member from operations to implement the expertise gap analysis that documents how ETF has managed 10% cut in posts while putting in place strategic priorities and mechanisms to identify and develop the expertise needed to deliver activities in the Single Programming Document Page 41 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

42 Table 1 Corporate KPIs No KPIs Activities completion rate 2 Timely achievement of activities of the ETF Work Program 3 Timely submission of Annual WP/SPD to the EC 4 Administrative support and coordination / operational staff ratio Operational Indicators and targets Rate (%) of completion of the activities of the ETF Work Program for the year: No. of activities of the ETF Work Program completed in year/ No. of activities of the ETF Work Program planned. Target >90% Rate (%) of activities of the ETF Work Program timely achieved in year: No. of activities of the ETF Work Program achieved on time/ No. of activities of the ETF Work Program achieved during the year. Target 80% 95.77% 97% 83% 83% 13 The Annual WP/SPD timely submitted to the EC. Target 100% 100% 100% (Administrative support and coordination job type category)/(operational job type category / Neutral job type category) Target <30% Human Resource & Finance Indicators and targets 23,5% 22% 5 6 Average vacancy rate Staff engagement % of authorized posts of the annual establishment plan which are filled at the end of the year, including job offers sent before 31st December. Target >95% 98% 98% Rate (%) of staff engagement from satisfaction survey within the Agency. Target >70% 56% N/A 14 7 Commitment Appropriation Implementation Rate (%) of implementation of Commitment Appropriations. Target >98% 99.89% 99.90% 8 Payment Appropriations cancellation rate Rate (%) of cancellation of Payment Appropriations Target <4% 1.85% 0.93% 9 Timely Payments Rate (%) of payments executed within the legal/contractual deadlines. Target >80% 85% 79% 10 Rate of outturn Total payments in year N and carry-forwards to Year N+1, as a % of the total EU funding received in Year N. Target >96% 98.51% 99,47% 11 Audit recommendation implementation Rate (%) of external and accepted internal audit recommendations implemented within agreed deadlines. Target >90% 95% 92% Legend KPI s for Directors of EU decentralised agencies & Agencies job screening 13 Estimate for No comparable indicator from last survey conducted in In 2015 survey was contracted out with 17 other agencies, calculation of this indicator consistent with the other agencies. Page 42 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

43 Table 2 Corporate KPIs as presented in the WP2015 KPI AREA INDICATOR & TARGET 2015 OVERALL ACHIEVEMENT 2015 OVERALL ACHIEVEMENT 2014 FINANCIAL MANAGEMENT Overall budget commitment (Subvention: T1, 2, 3) target > 98% Overall budget execution (paid/committed of admin budget T1, 2) target > 80% Overall budget execution (paid/payment appropriation of operational budget T3) target > 98% Consumption of Carry forward (administrative budget T1, 2), target >85% Payments paid within due date, target 80% HR MANAGEMENT 99.89% 96,70% 94.43% 94.32% 85% 99.90% 93.64% 98.54% 89.51% 79% Posts filling rate, target > 95% 98% 98% posts filled CORPORATE SERVICES Availability of IT critical systems, (11 measured ICT Systems) target > 99% Annual reduction of building cost/m2, target > 1% (after correction for inflation and energy costs) ORGANISATION Effectiveness: overall achievement of planned activities (results), target > 90% Efficiency: FTE ratio Administrative/ Operational, target < 30% Staff engagement (based on bi-annual staff survey), target > 70% Implementation of planned improvement actions, target >95% 99% 1.5% reduction 96% 23,5% 56% 97% 99% % reduction 97% 22% N/A 90% COMMUNICATION - AV >10% ANNUAL INCREASE IN TARGETS ON INDICATORS No of people reached through digital media channels No of subscriptions to digital media channels No of downloads of ETF publications No of ETF publications distributed No of news articles and blogs published No of citations of ETF in external media Search engine optimisation (i.e. Google referrals) No of referrals from other websites No of people participating in ETF corporate & regional events and participation rate (participants/invitees) Search engine referrals 3,987 Other referrals 61,196 Total page views:: 1,574,757 Visits: 169,354 Unique visitors: 106,369 PDF downloads: 238,739 Visitors were coming from 197 countries. 141,660 (135,146) = +16.3% 10,177 (9,030) = +12.7% 262,976 (234,948) = 11.93% 41 publications in print and online No articles + posts: 281(230) 75 (45) = % 4,391 (4,286) = +2.45% 58,129 (46,308) = % 65 corporate/regional events participants with a 95% participation rate Page 43 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

44 2.1 1 Human Resource Management Besides continuous adaptation of policies, processes and procedures in line with best practices while respecting the legal framework, the ETF, in line with its 2015 Work Programme particularly focussed on the following three areas: 1. Investing in staff development to match ETF evolving needs: a) a learning and development guide, including principles on long-term development was prepared and presented to all staff through several info sessions; b) 122 staff (125 in 2014) participated in at least one of the 94 learning and development activities (92 in 2014) offered; c) an expertise areas gap analysis was launched in order to identify the existing pool of expertise in the ETF and to match it to the needs for expertise provision in view of reaching ETF 2020 objectives. It will be concluded in Contributing to staff wellness and thus increasing their efficiency: a) implementation and management of working conditions conducive to positive work-life balance (part-time, parental leave, family leave, maternity leave, time for breastfeeding, Teleworking in place since 2007, flexitime in place since 2009); b) follow-up of the work-related stress risk assessment launched in 2014 through group discussions, introduction of a Mindfulness-Based Stress Reduction (MBSR) course and psychotherapist counselling support; c) awareness-raising campaign on protecting the dignity of people offered to all staff and training courses on preventing harassment delivered to relevant actors (managers, team leaders and confidential counsellors). 3. Continuous investment in development for managers, thus increasing staff satisfaction and efficiency: a) follow-up of the 360 feedback exercise for development purposes launched in 2014 through different individual and collective activities including individual or team coaching upon request; b) internal sessions on setting meaningful objectives; c) fostering internal collaboration within the management team through specific team activities. In addition, in 2015, the ETF s effective management of human resources is demonstrated by the following figures: On 31 December 2015, 2 posts were vacant compared to the Establishment Plan of 2015 (92) but none compared to the Establishment Plan of 2016 which was reduced from 92 to 90, During the year, ETF handled 5 newcomers and 8 leavers, 2 probation periods, 12 contract renewals, 10 selection procedures involving 424 applications and 42 interviews, 12 interim support and 95 learning and development activities. Five Implementing Rules to the Staff Regulations were adopted as well as a whistleblowing policy. In response to the increased terrorist alert following the Paris attacks, the ETF started the revision of its Overarching Health and Safety Policy, with emphasis of safety related to staff on mission. ETF will offer targeted training to its staff in Page 44 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

45 2.1.2 Financial Resources Management All financial management KPIs are in line with pre-defined targets in the 2015 work programme. The assessment of those performance measurements provides with reasonable assurance of the ETF s performance and cost effectiveness and that ETF used the resources provided by the EU for the pursuit of its activities in compliance with the sound financial management principle. EU Contribution 2015 In addition to the 20,144,000 received as EU contribution for 2015, the Governing Board has agreed to add the generated interest, amounting to 9, Out of the total of 20,153,041.65, the ETF has committed 99.89%, maintaining the good track record of the previous years (99.90% in 2014, 99.78% in 2013, 99.91% in 2012). As regards internal assigned revenue (recovered appropriations), during 2015, the ETF has recovered the amount of 38,848 (mainly from the Translation Centre), out of which it committed 36, (94.69%) and paid 36, (93.03%). The ETF also had available in commitment appropriations and 3, in payment appropriations available from recovered amounts in 2014, all consumed with the exception of 55 commitment appropriation. Budget Transfers In 2015, indicating the effect of the planning and monitoring processes and continued compliance with the recommendations received from the Court of Auditors, the ETF has performed 9 budgetary transfers (8 in 2014, 11 in 2013 and 2012) for a total of 8.2% of commitment appropriations (7.1% in 2014) and 15.5% payment appropriations (7.9% in 2014). The increased amount of payment appropriations transferred is linked to the budget restructuring undertaken in 2015, and was needed in order to pay previous year s activities whose budget lines have been discontinued. In terms of budget discipline, while in 2014 a total of 15 budget lines were modified more than three times, in 2015 only10 budget lines were modified. Still in the area of budgetary discipline and planning, while in 2014 there were four transfers executed in the last two months (November and December) for a total of 0.8m, in the last two months of 2015 there were five transfers for a total of 0.6m indicating better anticipation of the use of appropriations. Carry forward and outstanding commitments (RAL) Overall, the carry forward (Titles 1 and 2) has decreased from 6.4% in and 5.4% in to 3.3% in , which is an indication of the improved alignment of the ETF s administrative activities and their payments to its annual cycle. The amount of outstanding commitments (RAL - reste à liquider) remains relatively stable compared with previous years, 36.4% in compared with 32.4% in and 34.0% in In Title 1, the 180,398 (1.4%) carried forward is a small improvement from 2014; 183, (1.5%) (attention threshold 10%), and is linked mainly to: Learning and development 115,901 Payment for end of year Interim support, relocation and reception services for 31,764 Administrative missions 20,621 Page 45 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

46 In Title 2, the 316, (16.1%) carried forward represents a considerable decrease from last year s 36.2%, for the first time below the threshold of 20%, and is derived mainly from: Security and surveillance 68,175 Software development 96,200 EU systems 49,176 Telecommunications 62,948 The achievement of the reduction of the carry forward for Title 2 can be related to the anticipation of activities, as well as an accurate contract management and monitoring of activities. In Title 3, outstanding commitments (RAL) have increased from 32.4% in 2014 to 36.4% in 2015 mainly due to an increase in activities planned in the second half of the year and the effects of a transfer of funds to Title 3 in December to maximise the ETF support to operational activities. Outstanding commitments (RAL) largely concerned operational activities completed in 2015 but which would be paid only in 2016 (16%) or activities already planned for 2016 (14.9%) with only 4.9% the result of delays. of which Title Subvention 2015 Committed in 2015 Paid in 2015 To be paid in 2016 Done in 2015 pending payment To be implemented in 2016 planned delayed Admin (CF) T1 13,161, % 98.5% 1.4% 0.9% 0.3% 0.2% T2 1,959, % 83.8% 16.1% 6.5% 9.1% 0.4% T1+T2 15,120, % 96.6% 3.3% 1.6% 1.5% 0.2% Operational (RAL) T3 5,032, % 63.8% 36.4% 16.1% 14.9% 4.9% Overall ETF 20,153, % 88.4% 11.6% 5.2% 4.8% 1.4% Carry forward and outstanding commitments (RAL) from 2014 Payment of funds carried forward and outstanding commitments (RAL) from 2014 is 90.57%, in line with previous achievements (90.05% in 2014, 90.0% in 2013, 89.7% in 2012 and 90% in 2011). Out of the total carried forward for administrative expenditure (Title 1 and 2), the ETF has paid 94.32% (89.51% in 2014), with only 20,385 being declared lost ( 85,129 in 2014) Cancelled appropriations for administrative expenses are further reduced compared with previous years, indicating a more appropriate estimation of expenses to be paid in the next year during the end-of-theyear process. Out of the 1,739,419 of outstanding commitments (RAL) from previous years, the ETF has paid 89% (91% in 2014) with being declared lost ( in 2014). Page 46 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

47 Amount returned to the EU budget (Budget outturn) The amount to be reimbursed to the EU budget is currently estimated at 373,397, representing 1.9% of the total EU Contribution, which remains in line with the small amounts ETF has returned in the last years ( 188,193 in 2015). This is a good result, considering the threshold which would have an impact on budget negotiations is 5%. The relatively high amount of payment appropriation unused in Title 3 is related to the planning of the activities, as there were more activities scheduled towards the end of the year than usual, many of them due to the volatile environment in the partner countries. Payment delays Focusing on the timely payment execution has reached its target, with the rate of payments executed within their due date increasing from 78.59% in 2014 to 85.03% in Page 47 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

48 Overall ETF Budget 2015 (EU Contribution) Overall Budget ETF (EU Contribution) 20,153,042 20,158,053 Committed (C1) 20,130,677 20,137,595 Cancelled PA 373, ,193 Rate (%) of implementation of Commitment Appropriations 99.89% 99.90% Rate (%) of cancellation of Payment Appropriations 1.85% 0.93% Rate (%) of outturn (Total payments in year N and carry-forwards to 98.51% 99.47% Year N+1, as a % of the total EU funding and fee income, where applicable, received in Year N). Rate of payments executed within the legal/contractual deadline 85.03% 78.59% Overall Budget execution (Com) COM/Budget C % 99.90% Overall Payment Consumption (T1&2 COM C1 + T3 PAY C1&C8)/Budget Payment Execution of C1 PAY C1 / Budget Payments Executed out of year's budget (PAY C1+ PAY C8T3) / Budget T1&2 Payment Rate paid /committed C1 T1& % 99.55% 88.40% 86.76% 96.04% 94.85% 96.70% 93.64% PA Title 3 execution 94.43% 98.54% CF and RAL of N-1 execution 90.57% 90.05% Paid out of CF and RAL CF of N-1 execution Paid/Budget C8 T1&T % 89.51% Overall CF+RAL into N % 13.14% Amount CF+RAL into N+1 2,326,674 2,679,538 CF in N+1 - T1 1.4% 1.5% CF in N+1 - T2 16.1% 36.2% Total CF (T1&T2) 3.3% 6.4% RAL in N+1 - T3 36.4% 32.4% Number of Transfers 9 8 Transferred budget 8.2% 7.1% Lines with more than 3 transfers Payments within deadline 85.03% 78.59% Total to be reimbursed: 373, % 188, % T1 CA uncommitted 16, , T2 CA uncommitted: 3, T1 C8 Unpaid 38, , T2 C8 Unpaid 14, , T3 PA Unpaid: 279, , Other Cancellations (C9 in N+1) 20, , Cancellation of administrative carry forward (cancelled T1&T2 C8 out of total reimbursed) 14.3% 45.2% Page 48 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

49 Other funds Italian Trust Fund The available budget of was consumed during 2015, and only remained. FRAME Out of the 1,400,000 received for the Frame project (a first instalment of 1,249,800 in 2013 and 150,200 in 2014), ETF has already committed at the end of 2014 the amount of 1,396, (99.73%), and paid 1,313, (94.04%) out of the committed amount. The activities were finalised, and payments amounting up to will be reimbursed as not consumed, leading to an implementation rate of 99.0%. GEMM A last instalment of 402,019 was received in 2015, taking the project s total budget to 1,949,260.60, out of which the ETF has committed 85% and paid 61%. Declaration of assurance in cascade by (Sub) Delegated Authorising Officers In 2015, budgetary implementation powers were delegated by the Authorising Officer through a Director s Decision 15, which allocated the different budgetary areas, including specific budget lines, to the delegated and sub delegated authorising officers ((S)DAOs). In line with the ETF Rules and Procedures on the Deputising mechanism and the Presence of Managers on the ETF premises 16, it introduces a second level of back-up for Delegated Authorising Officers, in order to reduce the number of transactions to be approved by the Director and ensure transactions are dealt with by the most aware Authorising Officer available. The decision is accompanied by the individual delegations, signed by the Director, the authorising officer by delegation and his/her back-up. The signature of the act confirmed the acceptance of the charter of the authorising officer by delegation. To reinforce the assurance cascading process, in an annex to each declaration of assurance signed by (S)DAOs, the (S)DAOs are required to report/account for the use of their respective budgetary powers and issue a special declaration at the end of the year to confirm their compliance with the charter. This process enables the direct follow-up of the use of delegated and/or subdelegated budgetary powers. Fraud prevention and detection The ETF has developed its anti-fraud strategy as foreseen in the Commission s overall anti-fraud strategy 17. The objective of the ETF strategy is to assess the existing anti-fraud measures in place that enhance the prevention and detection of fraud within the ETF and to identify the residual areas of intervention needed to strengthen the ETF anti-fraud framework. The strategy has been elaborated taking into due consideration the principles of proportionality and cost-effectiveness of controls. During 2015 ETF has implemented a series of action to reinforce the anti-fraud framework including: identification of relevant roles and actors; appointment of an OLAF Correspondent; measures for formal safeguard and protection of whistle blowers; assessment of risk of fraud in risk management process; training on ethics and integrity for all staff with special focus on fraud prevention. 15 ETF/12/DEC/002 Issue 5 16 ETF/12/DEC/ COM(2011) ETF/14/DEC/012 Page 49 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

50 Data Protection The year 2015 was for ETF again a year of ordinary maintenance of compliance with Regulation 45/2001 reached in the course of the previous years, without the undertaking of new developments. Indeed, as needed, some notifications were closed and/or updated, a few incidents were managed, some advices provided. The in-house activities has been complemented by the undertaking of the biannual missions to meet the EDPS and the other DPOs. In the course of the year, the Data protection function has been jointly performed by the Data Protection Officer and Deputy Data Protection Officer. 2.2 Assessment of audit results and follow up of audit recommendations This section reports and assesses the observations and conclusions reported by auditors that could have a material impact on the achievement of the internal control objectives, and therefore on assurance, together with any management measures taken in response to the audit recommendations. The ETF is audited by both internal and external independent auditors: its internal audit is the Commission internal audit service (IAS) and the European Court of Auditors (ECA). The ETF has never received any critical recommendations from controlling bodies. This continued into 2015 during which no critical recommendations were issued. European Court of Auditors (ECA) In 2015 new arrangements for the annual agency audit have applied under Article. 208 of the new FR in connection with Art. 107 of the new FFR for Agencies, and therefore the second audit on the ETF accounts for the year ending 31/12/2014 was carried out by private auditors in the first half of March The audit company was contracted in 2014 under the competing inter-institutional framework contract for audits and controls, based on technical specifications agreed between the European Court of Auditors and DG BUDG. The first audit for the financial year 2015 took place on October 2015 and was carried out by the Court of Auditors (ECA). The visit did not give raise to any preliminary findings. As of 31 December 2015 there were no open actions from ECA audits. Internal Audit Service (IAS) The IAS did not carry out an audit in At the end of 2015, the ETF only had one open audit recommendation relating to the formal appointment of selection panels in procurement dating from the IAS audit in This recommendation was downgraded from 'very important' to 'important' by the IAS in September 2015 and will be formally closed through on-the-spot testing by the IAS during its next onsite audit visit to the ETF. IAS announced in October that it will carry out a full scale risk assessment at the ETF in the second half of The results of this will feed into the IAS Strategic Audit Plan for the period Page 50 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

51 Results of the ETF 2015 ex-post audit programme In addition to the audits carried out by EU institutional bodies, in 2015 the ETF commissioned three ex post audits through DG Budget s inter-institutional framework contracts for audits 18.The three audits and related conclusions were the following: 1) Ex post performance audit of the project Governance for Employability in the Mediterranean (GEMM). Main conclusions: The performance audit report is very positive and includes good practice areas and approaches. The main performance audit conclusions are the following: to date, the ETF has successfully used the funds received to deliver the intended outcomes of the GEMM project, in accordance with the principles of economy, efficiency and effectiveness. 2) Ex post audit on ETF practices in deploying its Performance Management Framework (PMF) and its Improvement Plan (IP) Main conclusion: The auditors conclude that the ETF s PMF is operating as designed, to drive the delivery of results. The model ensures that the ETF as an institution, its departments and staff, work within an integrated and reliable system of interrelated priorities, objectives, results and actions. The Improvement Plan drives accountability and transparency and, without doubt, places quality high on the ETF s agenda. Notwithstanding this, the auditors identify a number of areas where the PMF and the Improvement Plan could be strengthened on which ETF has promptly acted. 3) Ex post performance and system audit on a sample of ETF events The report provides a valuable and comprehensive analysis of event management process in the ETF. Auditors identifies issues for improvement and good practices and ETF has put in place an action plan to continue ensuring cost-effective delivery of ETF event activities. Based on the above, the positive results of audits carried out in 2015 confirm the positive trends of audits results over the last 8 years in the ETF and they are strong indicators of ETF performance that support managements' assurance on the achievement of the internal control objectives BUDG/11/PO/03 and BUDG/10/PO/01 19 Effectiveness, efficiency and economy of operations; reliability of reporting; safeguarding of assets and information; prevention, detection, correction and follow-up of fraud and irregularities; adequate management of the risks relating to the legality and regularity of the underlying transactions, taking into account the multiannual character of programmes as well as the nature of the payments (FR Art 30). Page 51 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

52 2.3 Assessment of the effectiveness of the internal control systems Since 2004, in line with the requirements of the Financial Regulation, the ETF has adopted and has made significant progress towards achieving full compliance to the requirements of its internal control standards (ICS) framework. In 2009, the ETF Governing Board adopted the revised 16 standards for effective management. The ETF Internal Control Standards are based on European and international good practice, aimed to ensure the achievement of policy and operational objectives and covering the entire management process, from defining objectives to delivering results. The ETF internal control standards framework provides quality standards for efficiency and effectiveness of operations while ensuring accountability. The ETF s performance management is underpinned by effective risk management and internal controls which support the organisation in taking corrective actions to meet the defined standards. The following section provides an assessment of each of the main elements aimed to contribute to the overall assessment of the effectiveness of ETF internal a control system in 2015 in addition to the control processes and systems described in section 2 for the management of resources. These elements are: Results of Internal transactional ex-post controls exercise As from 2011, ETF has introduced ex-post controls on financial transactions with a risk-based sampling of commitments and payments. The 2015 exercise has been carried out by internal financial verifying agents on the basis of the improved methodology reviewed by external auditors early 2015 in order to provide a reasonable assurance on the legality and regularity of its 2015 financial transactions. The outcomes of the 2015 ex-post controls confirm that: The expenses included in the payment transaction listing mentioned above, reflecting expenditure incurred between 1 January and 31 December 2015 through light workflow for low risk transactions, have been properly documented and duly authorised; The funds were disbursed in accordance with the ETF regulatory framework and the principles of sound financial management; and The control system set up surrounding budgetary commitments level 2 on level 1 is considered well designed and is operating effectively in all material respects. Results of risk management process The 2015 risk management process was embedded into ETF activities at various levels: Project/activity level: in dashboard to follow up risks encountered during the implementation of ETF projects/activities; Operational level: departmental / unit risk registers have been updated to feed into the annual macro self-risk assessment carried out by the management during the planning process; Follow up of the macro level risk assessment action plan established in the 2015 planning process (Annex 11 ). The above approach to risk management in the ETF enables a comprehensive and consistent control over the potential risks which may affect the achievement of the organisational objectives at strategic, organisational and operational levels. Page 52 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

53 Due to the ongoing instability in some ETF partner countries, monitoring the particular situation in partner countries with an associated risk is very important. The ETF needs to be prepared in case the perceived level of risk changes in a given country. Overall, the risk management exercise 2015 shows that the risk profile of the organisation is medium/ low. The same risk profile was recorded in 2014 and in Analysis of registered exceptions and/or control weaknesses The functioning of the internal control systems has been closely monitored throughout the year by the systematic registration of exceptions and internal control weaknesses. The underlying causes behind these exceptions and weaknesses have been analysed and corrective and alternative mitigating controls have been implemented when necessary. The ETF has a procedure for registering exceptions in place since 2005 to ensure that the ETF Director and management register any exceptional circumstances of significant instances of overriding controls or/and internal control weaknesses and/or deviations from the established ETF regulatory framework. Four exceptions were registered in The total financial value of registered exceptions is 58,063 which represents 0.3% of the total executed budget of 20,153,042 (nine exceptions were registered in 2014 with a financial value representing 0.5% of the total budget, five in 2013 with a financial value representing 0.6% of the total budget 2013). According to the relevant ETF procedures and policy 20 all the four exceptions/non-compliance events registered are below the materiality value of 50,000 which would require to be precisely reported and below the materiality criteria of 2% of the total budget which would qualify the exception/control weaknesses/non-compliance as reservation (see section 4.) No significant or material weaknesses of the ETF internal control system became evident in 2014 and the controls in place worked as intended. This is another performance indicator demonstrating good compliance and sound management of ETF resources in Progress in management of processes Process management forms an integrated part of the ETF Performance Management Framework (PMF) and control system. Since 2007 ETF has documented its main processes/procedures with the aim of reviewing and improving to reach effective, cost-efficient and better results. Currently ETF has identified 41 key processes (critical for the success of the organisation) which are categorised by: Management processes: the processes that govern the operation of the ETF; Core processes: processes that constitute the core business of the ETF; Support processes, which support the above operational and management processes. Following the efficiency study concluded in Q4 2015, where quality and productivity indicators have been identified for all process areas, a follow-up assignment has been launched in December 2015, to provide support in review of ETF process management framework, and distinguish between primary and secondary processes, followed by recommendations for process management in ETF, and action plan for updating documentation of primary processes by Q ETF/11/ DEC/ 001 and ETF/09/DEC/018 issue 2 ( Annex 4) ETF Policy on materiality criteria Page 53 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

54 Management of the ETF Performance Improvement plan The ETF Performance Improvement Plan is a consolidated corporate improvement action plan, which includes all recommendations deriving from institutional audits such as the Court of Auditors and the Internal audit Service and from other ex post audits, risk management assessments, management internal controls effectiveness and organisational performance self-assessments and reviews organised internally by the ETF. The Improvement Plan is centrally managed, monitored and it is reported to ETF management on a quarterly basis. In 2015, in total, 93 out of 96 actions included in the plan, from 13 different action plans, with a deadline in 2015 (97%) have been fully implemented and closed by the end of the year. This is a significant achievement considering the high number of actions with a 2015 deadline and it is a key indicator of the ETF s organisational efficiency and compliance. Of the remaining three actions: one, concerning the formal appointment of selection panel and declaration of Absence of Conflict of Interest and Confidentiality, is considered as completed by the ETF but it requires a field visit review by the IAS, as mentioned above in section 2.2; the second is about positioning of knowledge management and it has been intentionally postponed to give priority to the implementation of the document management system (SharePoint); the third concerns the development of an integrated digital communication strategy and it was delayed in order to include stakeholder comments on the draft strategy. Performance actions are prioritised and the ETF was successful in 2015 in fully implementing 8 out of 13 action plans, thereby implementing and closing all actions from This means that the ETF continues the positive trend as seen in previous years in prioritising and implementing actions over a two-year period. In line with the ETF performance Management Framework (PMF), actions are clustered according to the Internal Control Standards areas (ICS) and the Common Assessment Framework (CAF) 21, criteria. The implementations of 2015 improvement actions focused mainly on the following areas: 1. Leadership CAF 2. Strategy, Planning and stakeholder cooperation ICS 1. Mission 7. Operational Structure 5. Objectives and Performance indicators 6. Risk management Number of actions Overall % 7 8% 36 40% 3. People 3. Staff Allocation and Mobility 5 4% Main actions in the above areas involved: Internal monitoring of the implementation and deployment of the new structure (e.g. measurements of improvements in efficiency); Refine and improve a comprehensive and integrated performance management indicators system; Revision of methodology for monetization of time recorded (project staff costs); 21 CAF 2013: Improving public organisation through self-assessment. Page 54 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

55 Generate indicators showing the evolving situation of issues related to staff satisfaction and motivation; and Strengthen the approach applied to reporting and follow up of risks identified in Dashboard, the ETF project management information system. CAF 4. Partnerships and Resources 5.Processes ICS 11. Document management 12. Information and communication Number of actions Overall % 16 17% Main actions in the above areas involved: Integrating Knowledge Management organisation-wide; and Dashboard developments and updates. CAF ICS Number of actions Overall % 1. Leadership 2. Ethical and Organisational Values 14 18% Main actions in the above area involved actions to complete the Road map of Common Approach action plan and the action plan for full deployment of the ETF anti-fraud strategy as reported above. In addition, the ETF responded to recommendations from evaluations of its activities (ICS14) and internal control assessment (ICS 15) for a total of 11% and improved financial reporting (ICS13) for 2%. Results of the desk review of internal control system The 2015 annual desk review carried out by the Internal Control Coordinator staff provided a helpful overview of the current state of play of the ETF control system. It confirmed the effort of the organisation to ensure compliance with the ICS requirements and the continuous improvements towards effectiveness and efficiency of the internal control system. Results of the management self-assessment In line with its PMF, the 2015 management self-assessment exercise was carried using the CAF selfassessment tool, taking into consideration the outcomes of the above described elements of the ETF control system, namely the analysis of registered exceptions and/or control weaknesses; the risk management process; the results of audits 2015; the state of play of the ETF Improvement Plan; the outcomes of the ex post transactional controls; and the ICS desk review exercise. Overall, the results of the 2015 management self-assessment show developments in particular in the areas and related ICS and CAF criteria that were prioritised following the self-assessment They are the ones highlighted, as prioritised, in the section Management of the ETF Performance Improvement plan. In 2014, the process of reorganisation to make ETF more strategic drove the assessment while 2015 was the first year of deployment of the reorganisation. Reported information and data show the positive results Page 55 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

56 achieved by the organisation in 2015 which are reflected in the management self assessment, in particular: There is consensus over the assets represented by the implementation of the extensive planning exercise managed at corporate level and at operational level through the Torino process as an effective tool enable ETF to assess partner country stakeholder needs in its annual planning; in 2015 the planning process was updated in line with the Single Programming Document format and in discussion with Commission and GB; The ETF s PMF concept cascades its strategy down to annual departmental and individuals objectives; The ETF has an established stakeholder relation framework which was revised in 2015 based on the principles of Better Regulation. In 2015, the ETF also established key indicators to measure its performance in stakeholder relations; The ETF has established indicators to assess the delivery of the outcomes from its work in the countries. It has also established Country Progress Indicators which track macro socio economic developments in HCD in our countries; The ETF has regular external evaluations, which indicate that stakeholders have a positive perception of ETF contribution to VET policymaking, system building, as well as in the main system deep policy fields (e.g. qualifications, provision and quality, employment); There is also consensus on the sound financial management of the ETF budget, which is supported externally by the positive results of audits and the budget discharge report; Overall results show that the performance of the organisation follows the Plan Do Check Act (PDCA) improvement cycle and confirms that the ETF has put in place, at different organisational levels, adequate instruments to manage its performance with attention to quality criteria and notably efficiency and effectiveness. Concerning the overall state of the internal control system, generally the ETF complies with the three assessment criteria for effectiveness; i.e. (a) staff having the required knowledge and skills, (b) systems and procedures designed and implemented to manage the key risks effectively, and (c) no instances of ineffective controls that have exposed the ETF to its key risks. Further enhancing the effectiveness of the ETF s control arrangements in place, inter alia by taking into account any control weaknesses reported and exceptions recorded, is an on-going effort in line with the principle of continuous improvement of management procedures. The detailed outcomes of the selfassessment are provided in Annex 9. In conclusion, in 2015 the annual review of internal control system and organisational performance provided reasonable assurance to the ETF management on the level of compliance with all internal controls, on the correct functioning of the systems in place and on the organisational performance. The review highlighted the main strengths and the potential weaknesses of the systems in place and it supported the establishment of an improvement action plan. Page 56 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

57 2.4 Conclusions as regards Assurance This section reviews the assessment of the elements reported in Parts 2 and draw conclusions supporting the declaration of assurance and namely, whether it should be qualified with reservations. The information reported in Parts 1 and 2 stems from the results of management and auditor monitoring contained in the reports listed. These reports result from a systematic analysis of the evidence available. This approach provides sufficient guarantees as to the completeness and reliability of the information reported and results in a complete coverage of the budget delegated to the ETF. The declaration of assurance of the ETF Authorising Officer in the Annual Activity Report 2014 did not contain any reservations. Based on the criteria established by the ETF policy to define the materiality criteria for the ETF Director to base her decision as to whether a reservation should be included in the annual declaration of assurance in the context of annual activity reporting, the ETF has no reservations to report for Page 57 of ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

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59 3. DECLARATION OF ASSURANCE I, the undersigned, Madlen SERBAN, Director of the European Training Foundation in my capacity as Authorising Officer, declare that the information contained in this Annual Activity Report 2015 gives a true and fair view 22, state that I have reasonable assurance that the resources assigned to the activities described in this report have been used for their intended purpose and in accordance with the principles of sound financial management, and that the control procedures put in place give the necessary guarantees concerning the legality and regularity of the underlying transactions. This reasonable assurance is based on my own judgement and on the information at my disposal as reported in this report, among others: the end of year declaration of assurance issued by (Sub) Delegated Authorising Officers based on the knowledge gained from daily operation and management supervision activities; the results of the annual review and management self-assessment of the internal control system and organisational performance; the results of the internal transactional ex post exercise; the progress and follow-up of risk management activities; the results and follow-up of ex-post audits and controls; the results of ex-post evaluations and the monitoring activities of ETF activities; the recommendations of the Internal Audit Service, the accompanying action plans and their followup; and the lessons learnt from the reports of the Court of Auditors for the years prior to the year of this declaration. I confirm that I am not aware of anything not reported here which could harm the interests of the institution. Turin, 10 June True and fair in this context means a reliable, complete and correct view on the state of affairs in the institution. ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

60 ANNEX 1 ETF Organisation structure 2015 On 21 November 2014, the Governing Board approved a new organisational structure that entered into force on 1 January ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

61 ANNEX 2: Human Resources a) Establishment plan - Temporary agents FUNCTION GROUP GRADE Establishment Plan 2015 TAs in Post on 31/12/ AD Sub-total Function Group AD AST Sub-total Function Group AST TOTAL TA posts b) Contract agents Function group Posts filled as of 31/12/2015 FGII 10 FGIII 21 FGIV 8 Total 39 Including 2 job offers c) Local agents Function group Posts filled in as of 31/12/2015 ALN2 2 Total 2 ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

62 d) ETF staffing by nationality 2015 Nationality Total % Austria 2 2% Belgium 8 6% Bulgaria 2 2% Cyprus 1 1% Czech Republic 1 1% Germany 7 5% Denmark 1 1% Spain 7 5% Estonia 2 2% Greece 2 2% France 5 4% Finland 4 3% former Yugoslav Republic of Macedonia 1 1% Hungary 1 1% Italy 50 38% Ireland 3 2% Luxembourg 1 1% Latvia 1 1% Morocco 1 1% Netherlands 5 4% Portugal 1 1% Poland 1 1% Romania 8 6% Sweden 2 2% Tunisia 1 1% Turkey 1 1% United Kingdom 11 8% Ukraine 1 1% Total % Including 2 job offers e) ETF staffing by gender (TA, CA, LA) TA, CA, LA F M Total AD associated level AST associated level Total Including 2 job offers Managerial positions F M Total Middle Managers Senior Managers Total ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

63 f) ETF staffing by function Job function CA LA TA Total Administrative support Professionals Core business expertise Management 9 9 Total Including 2 job offers g) Results of the screening exercise In accordance with Article 38.1 c) of its Financial Regulation, since 2014 the ETF has been carrying out a job screening exercise in line with the methodology received from the European Commission. Job Type (sub)category 2014 (%) Only ETF Statutory Staff 2015 (%) Only ETF Statutory Staff Administrative support and Coordination 22.18% 23.83% Administrative support 15.68% 16.69% Coordination 6.50% 7.14% Operational 61.65% 62.78% Top Level Operational Coordination 3.76% 3.01% Programme Management & Implementation 46.99% 50.00% Evaluation & Impact Assessment 3.38% 4.51% General Operational 7.52% 5.26% Neutral 16.16% 13.38% Finance/Control 15.41% 12.63% Linguistics 0.75% 0.75% ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

64 ANNEX 3: Draft annual accounts and financial reports (18/02/2015) a. Balance sheet 31/12/ /12/2014 Intangible fixed assets 1,921, ,073, Tangible fixed assets 655, , Stocks 3, , Current assets - Short term pre-financing 815, , Current assets - Short term receivables 1,540, ,453, Cash account 1,605, ,831, ,542, ,526, Capital 2,207, ,015, Accounts payable 4,335, ,510, ,542, ,526, b. Statement of financial performance 31/12/ /12/2014 Operating revenue 20,511, ,602, Administrative and operational expenses - 20,320, ,498, Non-operational activities , Outturn for the year 191, , c. Statement of changes in capital 31/12/ /12/2014 Financial performance of the year , , d. Statement of cash flow 31/12/ /12/2014 Cash at beginning of the year 1,831, ,510, Decrease in cash -225, ,679, Cash at end of the year 1,605, ,831, e. Budget result account 31/12/ /12/2014 Revenues 20,593, ,386, Expenditures - 21,158, ,567, Outturn for the year -565, ,181, Adjustment for carry forward from previous years 53, , Appropriations carried forward and cancelled 886, ,292, Exchange gains/losses -1, , Balance for the financial year 373, , Balance carried over from previous year 188, , Amount reimbursed to the EC -188, , Total amount to be reimbursed to EC 373, , ETF ANNUAL ACTIVITY REPORT of 87 ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

65 ANNEX 4: Materiality criteria ETF Policy on Materiality criteria to establish reservations in the annual declaration of assurance of ETF director in the Annual Activity Report (ETF/09/DEC/018 issue 2) ETF CONSOLIDATED ANNUAL ACTIVITY REPORT

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