Insight into EU performance-based funding
The Netherland Court of Audit is investigating the impact of performance-based funding on insight into the regularity, efficiency and effectiveness of EU money.
Performance-based funding means the EU disburses funds to member states on the basis of the results they achieve instead of on the costs they incur.
Why are we carrying out this audit?
Brussels and the EU member states will start preparations this year for the 2028-2034 Multiannual Financial Framework (MFF). The MFF is the EU’s long-term budget. Its likely introduction of performance-based funding is thought to be a significant innovation.
The use of public money requires appropriate audit and accountability. The audit and accountability system in place for EU funds, however, does not function optimally. Insight into the efficiency and regularity of EU expenditures is poor at both EU and member state level.
The design of the MFF and EU funding provides significant insights into the efficiency and regularity of EU funds. This audit will look at concrete examples of the positive and negative aspects of EU funding. We will carry out case studies of the COVID-19 recovery fund, also known as the Recovery and Resilience Facility, and the use of performance-based funding in the agricultural funds (Common Agricultural Policy).
We expect our audit to contribute to the correct use of performance-based funding and to the Netherlands’ preparations for the next MFF.
What are our audit questions?
Our key audit questions are:
- What are the characteristics of performance-based funding and the consequences for the Netherlands and what are the differences from the customary funding method based on costs incurred?
- Does the organisation of performance-based funding in the Netherlands give appropriate consideration to the regularity, efficiency and effectiveness of funds?
- In practice, what are the consequences of performance-based funding in the Netherlands for recipients (member states and beneficiaries) regarding the regularity, efficiency and effectiveness of the COVID-19 recovery fund (RRF) and the agricultural funds?
Do you want to take part in this audit?
The Court of Audit invites you to share any information you may have that would benefit our audit. We appreciate all contributions, knowledge and experience you may care to share with us on this topic. Simply send an email to bijdrage@rekenkamer.nl.
We read all emails carefully and treat them in confidence. However, we are not able to reply to every contribution we receive.