APPENDIX 1
DEPARTMENT OF ECONOMIC DEVELOPMENT (NI)
INDUSTRIAL RESEARCH AND TECHNOLOGY UNIT
(PAC 97-98/108)
Note requested by Chairman-Paragraph 79 refers
Since IRTU was established in 1992, programmes
of assistance have been progressively evaluated, revised and restructured
with a view to more efficient administration and improved value
for money. Comprehensive Operating Manuals are in place for each
programme describing the procedures which are required to be followed
with particular emphasis being given to the importance of full
documentation of all aspects of appraisal, monitoring and evaluation.
All staff have been briefed at internal training sessions on these
issues.
On the appraisal of assisted projects
Improvements introduced include the submission
to Casework Committees of a comprehensive ‘case for
support’, describing in detail how the assistance criteria
has been met in each case. Aspects such as additionality, company
viability, technical innovation and potential commercialisation
are required to be documented in full. The approvals procedures
for both programmes have also been revised to incorporate formal
senior management and Board member involvement in the authorisation
of assistance.
On the monitoring of assisted programmes
The formal procedures now in place require companies
to provide regular progress reports at intervals not greater than
six months as part of each claim for payment of grant. Claims
are not processed until the progress reports are submitted. Each
progress report is required to follow a prescribed format to directly
address the progress being made towards achievement of the targets
and milestones contained in the original application for assistance.
Where satisfactory progress is not being made, the Client Executive
will visit the company. Additionally, formal Review Visits are
made at prescribed intervals, by a Client Executive not involved
with the project or by an outside consultant, as an independent
check on progress.
On the evaluation of assisted projects
All projects are evaluated immediately after
completion to assess to what extent technical objectives have
been achieved. In addition, all projects are subject to evaluation,
some years after they have been completed to judge commercial
outcomes. In the case of Compete projects this evaluation is conducted
3 years after completion and for Start projects up to 5 years.
All evaluation reports are required to be furnished to a prescribed
format to describe in detail to what extent technical and commercial
targets have been achieved and what benefits have accrued from
the Government assistance provided.
The computerised database and project management
system which is now in place for the Compete and Start programmes
ensures that reminders are generated when monitoring, review and
evaluation reports are due.
On measuring the effectiveness of IRTU programmes
IRTU now has in place a comprehensive framework
for evaluating the impact of its programme. In addition to the
project evaluations described above all programmes are subject
to periodic policy evaluation to examine programme management,
to assess the extent to which programme aims and objectives have
been achieved and to measure overall impact and economic benefits.
More recently, the NI Economic Research Centre (NIERC) has been
commissioned to conduct in depth studies on the impact on company
competitiveness of IRTU grant assistance. The results of these
intitial studies are encouraging; for example, a key finding was
that the sample of IRTU-assisted companies had growth rates, sales
and profits significantly above the Northern Ireland average.
IRTU intends to commission regular studies of this nature and
is currently discussing with NIERC how the evaluation framework
can be further strengthened.
Department of Economic Development
6 January 1998
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