ANNUAL REPORT 2002–2003 DEPARTMENT OF FOREIGN AFFAIRS AND TRADE OF FOREIGN AFFAIRS DEPARTMENT Annual report 2002–2003 AUSAID VOLUME 2 Australian Agency for International Development Telephone: (02) 6206 4000 Internet: www.ausaid.gov.au ABN 629 215 588 38 AusAID ANNUAL REPORT 2002–2003 © Commonwealth of Australia 2003 ISSN 1032–2019 ISBN (volume 1) 0-9751405-1-5 ISBN (volume 2) 0-9751405-3-1 ISBN (set) 0-9751405-0-7 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth available from the Department of Communications, Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Intellectual Property Branch, Department of Communications, Information Technology and the Arts, GPO Box 2154, Canberra ACT 2601 or by email to [email protected] Acknowledgements AusAID editors: Annmaree O’Keeffe, Neil McFarlane, Georgina Harley, Romaine Kwesius Editorial Consultant: Morris Walker Pty Limited Indexer: Michael Harrington Internet websites AusAID home page http://www.ausaid.gov.au DFAT home page http://www.dfat.gov.au AusAID annual report http://www.ausaid.gov.au/about/annrep.cfm Distribution This report is available through Australian Commonwealth Government Bookshops, the above websites and directly from the Australian Agency for International Development (AusAID). Comments about this report are welcome and should be directed to: Corporate Policy Branch AusAID GPO Box 887, Canberra ACT 2601, Australia Telephone: (02) 6206 4000 Facsimile: (02) 6206 4872 Australian Business Number (ABN) 629 215 588 38 Design and Typesetting by ZOO Printing by National Capital Printers ii Ausaid Annual Report 2002–2003 CONTENTS Guide to the report vi SECTION 1: OVERVIEWS 1 Director General’s review 3 Agency overview 7 Role and functions 7 Organisational structure 7 Outcome and output structure 9 SECTION 2: REPORT ON PERFORMANCE 13 Effectiveness against outcome 14 Performance information framework 14 Effectiveness—overall achievement of outcome 15 Performance in key result areas 17 Promoting effective governance 17 Improving access to quality education 21 Improving health 23 Improving agriculture and rural development 24 Providing essential infrastructure 26 Maximising environmental sustainability 26 Promoting gender equity 28 Country and regional programs 31 Papua New Guinea 31 Pacific 40 East Asia 50 South Asia 61 Africa 65 Middle East 66 Global programs 68 Multilateral organisations 68 Emergency, humanitarian and refugee program 75 Non-government organisations and volunteer programs 78 Cross-regional programs 80 Information, education and communication programs 83 Output 1.1—Policy 86 Output 1.2—Program management 88 Financial results 96 Ausaid Annual Report 2002–2003 iii SECTION 3: MANAGEMENT AND ACCOUNTABILITY 99 Corporate governance 100 Governance structures 100 Governance processes 101 Corporate plan 102 Strategic plan 102 Internal audit and risk management 103 Ethics and values 103 Senior executive remuneration 104 External scrutiny 105 Management of human resources 107 Purchasing and assets 112 Consultants and competitive tendering and contracting 112 Purchaser–provider arrangements 113 Service charter 113 SECTION 4: FINANCIAL STATEMENTS 115 SECTION 5: APPENDICES 163 A. Ministerial responsibilities 164 B. Resources summary for outcome 166 C. Aid program expenditure 167 D. Staffing overview 171 E. Freedom of Information 177 F. Information available on the internet 182 G. Consultancy services and effective tendering and contracting 183 H. Advertising and market research 185 I. Aid Advisory Council members 186 J. Overseas accreditation 188 K. Ecologically sustainable development and environmental performance 189 SECTION 6: GLOSSARY AND INDEX 190 Glossary 192 Index 194 iv Ausaid Annual Report 2002–2003 FIGURES Figure 1: AusAID organisational chart at 30 June 2003 8 Figure 2: AusAID outcome and output structure 2002–03 10 Figure 3: Expected total Australian aid in 2002–03 16 Figure 4: Direct expenditure by sector 2002–03 17 Figure 5: Trade-related development assistance 1996–97 and 2002–03 18 Figure 6: Direct expenditure for education by subsector 2002–03 22 Figure 7: Direct expenditure on health by subsector 2002–03 23 Figure 8: Direct expenditure for rural development by subsector 2002–03 24 Figure 9: Direct expenditure for infrastructure by subsector 2002–03 26 Figure 10: PNG country program aid expenditure by sector 2002–03 33 Figure 11: Expected total aid flows to the Pacific by country 2002–03 40 Figure 12: Expected total aid flows to East Asia by country 2002–03 50 TABLES Table 1: Resources summary for outcome 166 Table 2: Total Australian ODA flows to partner countries 167 Table 3: Country and regional programs expenditure 1999–03 168 Table 4: Global programs expenditure 1999–03 169 Table 5: Employees by classification, location and gender at 30 June 2003 171 Table 6: Ongoing and non-ongoing employees, full-time and part-time 171 Table 7 Senior executive gains and losses during 2002–03 172 Table 8: Senior Executive Service at 30 June 2003 172 Table 9: AusAID employees by location and gender at 30 June 2003 173 Table 10: AusAID Certified Agreement salary ranges at 30 June 2003 174 Table 11: AusAID SES employee salary ranges at 30 June 2003 174 Table 12: Expenditure on formal training activities 174 Table 13: Expenditure on additional training and development activities 175 Table 14: Program Support Unit training and development 2002–03 175 Table 15: Breakdown of priority training activities 176 Table 16: Workplace diversity: representation of groups within levels 176 Table 17: Summary of consultancy services contracts awarded in 2002–03 183 Table 18: Advertising and market research expenditure 185 Table 19: AusAID representation at posts at 30 June 2003 188 Ausaid Annual Report 2002–2003 v Guide to the Report GUIDE TO VOLUME TWO The report of the Australian Agency for International Development (AusAID) refers to the outcome and output structure and performance information presented in the Foreign Affairs and Trade Portfolio Budget Statements 2002–03 (Part C: Agency Budget Statements—AusAID). Section 1 contains: • the Director General’s review for 2002–03 • the agency overview, including role and functions, outcome and output structure and organisational chart. Section 2 focuses on outcome and output performance information reports including: • overall achievement of outcome • reports on programs (country, regional and global programs, multilateral organisations, non-government organisations (NGOs) and volunteer groups, cross regional programs, emergency, humanitarian and refugee programs, and communications, education and information) • policy and program management (contracting services and financial management under accrual budgeting). Section 3 reports on management and accountability systems on corporate governance, external scrutiny and management of human resources. Section 4 contains the audited financial statements for 2002–03. Section 5 includes appendices that give additional information and reports required under specific legislation. Section 6 contains a glossary of abbreviations and acronyms and the index. vi Ausaid Annual Report 2002–2003 Ausaid Annual Report 2002–2003 vii The Minister for Foreign Affairs, Alexander Downer, greets the Thai Foreign Minister, Surakiat Sathirathai, at the Foreign Ministry in Bangkok on a visit to Thailand in late 2002 to sign a counter-terrorism memorandum of understanding with the Thai Government Photo: Pornchai Kittiwongsakul/AFP School children in the island province of Guimaras in Peace Monitoring Group members fold the Peace Western Philippines benefit from solar panels installed Monitoring Group Flag for the last time before by the Australian-funded Municipal Solar Infrastructure returning to Australia after more than five years Project. The solar panels provide lights to classrooms of support to peace monitoring operations and electricity to power audiovisual equipment Photo: Department of Defence Photo: Rolly Inciong 1 section 1 overviews Director General’s Review Agency Overview Mr Bruce Davis, AusAID Director General ‘Aiming for peace and stability is very much at the forefront of our work. We live in a region that is threatened with the possible challenge of failed states and Australia has taken a key leadership role.’ 2 Ausaid Annual Report 2002–2003 OVERVIEWS DIRECTOR GENERAL’S REVIEW Director General’s Review THE YEAR IN REVIEW In 2002–03 AusAID encountered a rapidly changing international and regional environment marked by rising concerns over security. The aid program played an important part in Australia’s responses to the Bali bombings, the war against Iraq and the outbreak of Severe Acute Respiratory Syndrome (SARS). Concerns over the performance of a number of our close regional neighbours led to new demands on Australia. In the midst of these developments, the Minister for Foreign Affairs made his 11th Statement to Parliament, Australian Aid: investing in growth, stability and prosperity, in September 2002. This statement, which was the first comprehensive statement of aid policy since 1997, set down the key principles of the government’s approach. It positioned the aid program to respond effectively and rapidly to new and emerging challenges, underpinned by a sound but evolving understanding of aid effectiveness. Growth, peace and stability
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