Chapter Ten: Aid administration and management
AusAID is an administratively autonomous agency within the Foreign Affairs and Trade portfolio. The agency is responsible for the management of the Australian Government's overseas aid program.
The Director General reports directly to the Minister for Foreign Affairs on all aspects of aid policy and operations. The Director General is responsible to the Secretary of the Department of Foreign Affairs and Trade for the administration of AusAID and is a member of the department's Executive.
AusAID has a central office in Canberra and is represented at 23 overseas diplomatic missions. Overseas representation supports the aid program's operations in developing countries and with multilateral agencies.
The September 2002 Ministerial Statement: Australian Aid: Investing in Growth, Stability and Prosperity, sets out a renewed policy framework and identifies ways to strengthen the impact of Australian aid assistance. AusAID's Strategic Plan, released in December 2001, provides the administrative framework to ensure the policy objectives of the aid program are met. As the Strategic Plan enters its consolidation phase, the focus will be on implementing in-country activity management at the field level and institutionalising improvements to business planning, program strategies, risk management and staff performance.
AusAID outputs
AusAID's core business is to serve the Government by advising on development issues and delivering Australia's development cooperation program with excellence. AusAID has a single outcome: to advance Australia's national interest by assisting developing countries to reduce poverty and achieve sustainable development. Two agency outputs contribute to this outcome: policy and program management. The Government will purchase these two outputs from AusAID at an agreed price of $13.9 million and $56.5 million respectively in 2003-04. AusAID's people management and corporate systems support the delivery of these two outputs.
Policy advice
AusAID provides advice and analysis to the Minister for Foreign Affairs, the Minister for Trade and the Parliamentary Secretary to the Minister for Foreign Affairs on aid policy, program directions and international development issues. The provision of timely, comprehensive and accurate policy advice and analysis allows the Government to make informed decisions in the national interest.
The agency also supports Government communication with the Australian community and Parliament through the provision of briefings, speeches, correspondence, press releases, replies to parliamentary questions and publications. This helps build community understanding of development issues and ensures that the aid program remains accountable to the Government, the Parliament and the Australian public.
Program management
AusAID manages Australia's overseas aid program on behalf of the Government. Actual delivery of the aid program is outsourced. AusAID's program management seeks to:
- ensure programs and projects correspond with Government priorities and are defined in partnership with the people and governments of developing countries;
- ensure high quality projects and programs through effective identification and design, regular monitoring, evaluation, identification of lessons learned, and access to technical expertise and external advice; and
- establish and manage contracts with delivery agents including the private sector, public sector providers, international and regional development organisations and community groups including Non Government Organisations.
In 2003-04, AusAID will be well advanced in moving to in-country activity management. This will enhance decision making at the field level in response to local circumstances, and promote more dialogue with partner governments.
Improving impact and effectiveness
Strengthening the effectiveness of Australia's aid program is an ongoing commitment. Learning from international best practice and reviewing and evaluating our own program quality, effectiveness and impact will continue to be of great importance.
In 2003-04, the recently completed review of AusAID's Performance Information Framework will be followed by work on systems for gathering and analysing performance information. This will include the trial of the Simplified Monitoring Toolbox, a new electronic monitoring system for the submission of activity reports. Expanding the new AusAID Knowledge Warehouse will also assist in program development and delivery. This database provides user-friendly access to information on lessons, good practice examples, reviews, evaluations and policy documents.
Another priority in 2003-04 will be rigorously measuring the impact and effectiveness of at least one country program. Due to the integrated nature of country programs, this will entail evaluation at a considerably higher level than previous reviews which have focused on individual activities. Evaluating the aid program's governance and capacity building activities, continued quality assurance work, and assessing the quality of project designs and planning processes will also take place.
Contract services
AusAID contracts firms and individuals to deliver activities at all stages of the project management cycle: feasibility, design, implementation, review and evaluation. In 2003-04, improvements to the tendering and contracting process will be consolidated and, where appropriate, adjusted and expanded. The Agency will continue to place a high priority on staff training to enhance contracting and contract management skills and competencies. AusAID's establishment of a Development Contractors' Forum is improving consultation with industry on both contracting and wider aid issues.
People Management and Corporate Systems
People management
Strengthening the strategic focus and analytical capability within AusAID will require attracting, developing and retaining high quality aid professionals. By providing effective leadership and management, sharing a commitment to delivery of the aid program, providing policy and analytical advice, and implementing flexible, responsible and innovative work practices, AusAID aims to be an employer of choice. The implementation of the People Management Strategy (2002-06) will assist in meeting this goal. Other priorities will be to promote cost-effective approaches to workforce planning and to continue to improve AusAID's performance management system.
Financial, statistical and information management
AusAID will continue to improve the quality of its information regarding the Australian aid program. The launch of a new intranet site in November 2002 increased staff access to statistical and business information. In 2003-04, improving electronic information sources to inform decision-making will be a priority. Efforts will also be directed to enhancing the performance of information systems at posts. It is envisaged that AidWorks, the replacement for the Agency's existing Activity Management System, will be completed by July 2004.
Enhancing corporate performance
In 2003-04, AusAID will continue its contract compliance audit activity. In addition, a new set of risk management and performance indicators will be refined and applied to monitor the effectiveness of in-country administrative processes and controls.