Terms of Reference for Pillar Assessments

Terms of Reference for Pillar Assessments

The Financial Regulation (FR) applicable to the General Budget of the European Union (EU) sets out that under indirect management the Commission can entrust budget implementation tasks to certain countries, organisations and bodies (further referred to as 'Entities').

These entities must meet requirements in up to seven areas relating to the internal control system, the accounting system, an independent external audit and rules and procedures for providing financing from EU funds through grants, procurement and financial instruments and Sub-Delegation.

On this basis, entities wishing to work with EU funds under the indirect management mode must successfully pass a Pillar Assessment.

In order to start the process, the interested entity needs to submit an application (Application form for pillar assessment) to the Commission. The Commission service(s) concerned will then carry out an opportunity check and a legal check. If the result is positive, a pillar assessment can take place. The Pillar Assessment is usually carried out by external consultants contracted by the interested entity. In exceptional cases, external consultants are contracted by the Commission service(s) concerned.

Pillar Assessments may be contracted and managed by Commission services or by an organisation requesting to be entrusted with implementation of the EU budget under indirect management.

For this purpose two sets of Terms of Reference (ToR) are available. The use of these ToR is compulsory.

Pillar Assessments contracted by INTERESTED ENTITIES

Pillar Assessments contracted by THE EUROPEAN COMMISSION

Based on the results of the Pillar Assessment the Commission will decide whether it can entrust budget implementation tasks to the Entity and whether it can conclude specific agreements under indirect management with the entity.

In addition, there is a Guidance Note on the management of Pillar Assessments contracted and managed by entities requesting to be entrusted with emplementation of the Eu budget under indirect management.



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