Corporate governance

External scrutiny

Management of human resources

Purchasing and assets

Section 3 Management and accountability

There are 25 graduates in AusAID’s 2011 program who bring vast and varied education and experience to the agency. Front row (left to right):Emma Butcher, Niamh Dobson, Naomi Cook, Tess McSpedden, Emily Edwards, Sarah Toh, Susie Byers, Elizabeth Morgan, Greg Furness, Lucy Upham, Nicole Ella. Middle row (left to right): Emma Hunt, Michael Costa, Angela Agius, Esther Perry, Marianna Linnik, Kate Howard, Benjamin Hirons, Darrel Hawkins. Back row (left to right): Dan Blue, Timothy Carlson, Amy Savage, Louis Henley, Hugh Pennicook, Samantha Orr

Photo: Angus Braithwaite, AusAID

SE

CT

ION

3

Corporate governance

Governance arrangementsDuring 2010–11, AusAID’s governance structure incorporated eight committees which

assisted the Director General in the strategic oversight of program and corporate

performance. The governance committees comprise the:

• Executive Committee: which is chaired by the Director General and sets the agency’s

overall policy direction and development agenda, manages and oversees corporate

relationships (particularly ministerial and whole-of-government), and acts as a board of

management to provide strategic oversight.

• Corporate Reform Committee: which is chaired by the Director General and coordinates

and directs AusAID’s reform and change agenda.

• Audit Committee: which assists the Director General and the Executive Committee with

legislative, corporate governance, risk management and financial responsibilities.

• Security Committee: a newly established committee to advise and support the Director

General and the Executive Committee on issues related to the safety and security of

AusAID staff.

• Resources Committee: which assists the Director General and the Executive Committee

to analyse management information, and makes recommendations on financial, human

and physical resources.

• Postings Committee: which recommends staff placements for postings overseas.

• Information and Communication Technology Steering Committee: which reviews,

promotes and proposes activities which align information and communication

technology systems, services and investments with the needs of AusAID.

• Program Committee: which assists the Director General to provide high-level strategic

direction and leadership to the agency’s program strategies and program quality

and effectiveness.

Executive CommitteeThe Executive Committee is the senior committee in AusAID’s governance arrangements.

The current membership of the committee commenced in February 2011 when it was

reconstituted as part of an organisational restructure of AusAID. This restructure included

establishing a new level of senior management, the Deputy Director Generals at SES Band

3, and the redesignation of the then SES Band 2 Deputy Directors General as First Assistant

Directors General.

The Executive Committee consists of the Director General, the two Deputy Directors

General, the First Assistant Director General, Corporate Enabling Division and the Chief

Financial Officer, with one division head and one branch head on a six-month rotating basis.

202 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

Peter Baxter, Director GeneralPeter Baxter was officially appointed AusAID’s

Director General on 12 May 2010. Before moving

to AusAID, Peter headed the Department of

Foreign Affairs and Trade’s Consular, Public

Diplomacy and Parliamentary Affairs Division.

Peter joined the Department of Foreign Affairs

and Trade in 1988. He has been on a number of

overseas postings including Fiji, Solomon Islands

and Vietnam, and was Deputy Chief of Mission

in Washington from 2002 to 2005. In 2000, he

was appointed as Special Envoy of the Foreign

Minister to Solomon Islands.

His previous Canberra assignments with the department include senior management roles

heading the Consular and Passports (2000), Corporate Management (2000 to 2001), Market

Development (2001 to 2002) and North Asia (2005 to 2008) divisions.

Ewen McDonald, Deputy Director General— Corporate, Humanitarian, and International Group

Ewen McDonald joined AusAID as Deputy

Director General of the Corporate, Humanitarian

and International Group and a member of the

agency’s Executive Committee in February

2011. He began his career in the Victorian Public

Service in 1978 where he remained until 1993.

During this time he worked across various

departments on a range of corporate as well as

program and policy issues.

Since 1994, Ewen has undertaken a range

of roles in the Department of Education,

Employment and Workplace Relations and its

various guises. His experience has involved

policy and program roles in corporate strategy and school education. Ewen was appointed

Deputy Secretary, Corporate and Network in 2008 at which time he led the establishment

of DEEWR as a new department.

203MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

James Batley PSM, Deputy Director General— Asia, Pacific and Program Enabling Group

James Batley joined AusAID as Deputy Director

General of the Asia, Pacific and Program Enabling

Group and the agency’s Executive Committee

in February 2011. Before joining AusAID, James

headed the Department of Foreign Affairs

and Trade’s Consular, Public Diplomacy and

Parliamentary Affairs Division.

James joined the Department of Foreign Affairs

in 1984 and early in his career served in Vanuatu,

Papua New Guinea, and Indonesia. From 1997 to

1999 he was Australian High Commissioner to

Solomon Islands, concurrently serving terms in

1997 as Deputy Leader of the regional Truce Monitoring Group in Bougainville and in 1998 as

Chief Negotiator of the Group’s successor, the Peace Monitoring Group.

From 1999 to 2002 James served as Australia’s senior diplomatic representative in Dili, East Timor, and was appointed Australia’s first Ambassador to East Timor at independence in May 2002. In 2004 James was appointed Special Coordinator of the Regional Assistance Mission to Solomon Islands, a position he held until 2006. From early 2007 to late 2009 he served as Australia’s High Commissioner to Fiji, with concurrent accreditation to Tuvalu and Nauru, and as Permanent Representative to the Pacific Islands Forum Secretariat.

James also held a range of senior positions with the department in Canberra. He was awarded the Public Service Medal in 2002.

Paul Wood, Chief Financial OfficerPaul Wood began as AusAID’s Chief Financial

Officer and as a member of the Executive

Committee in February 2011. Before that, he

was Chief Financial Officer of the Department of

Infrastructure and Transport for over four years.

Before joining the Australian Public Service in

2006, Paul was a Senior Manager with Canberra

consultancy Walter Turnbull, where he provided

advice and assistance on financial and budgetary

matters to several Commonwealth agencies. He

also worked for a Sydney chartered accounting

firm specialising in taxation.

Paul worked for seven years in the United Kingdom as an internal and external auditor in the

education, health and local government sectors.

204 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

Blair Exell, First Assistant Director General—Corporate Enabling Division

Blair Exell was appointed to the position of

First Assistant Director General Corporate

Enabling Division in December 2010. Before

that, he was the acting head of the Pacific and

PNG Division, following a posting in Indonesia

as Minister Counsellor and AusAID’s senior

representative to the Australian Embassy

in Jakarta.

Blair began his career in the development

sector in Cambodia and Vietnam in 1993

before joining AusAID in 1997. He has worked

in AusAID’s policy, program and corporate

areas covering Asia and the Pacific. Blair has

had postings in Cambodia, Solomon Islands and Indonesia, and was a member of the

Bougainville Peace Monitoring Group in 1998.

Catherine Walker PSM, First Assistant Director General—Africa, West Asia, Middle East and Humanitarian Division

Catherine Walker was appointed First Assistant

Director General in AusAID in 2008. She joined

the agency in 1992 as Director Public Affairs.

She has served as Director Humanitarian and

Emergencies Section and was posted to Rome

as Counsellor Development Cooperation

from 1996 until 1999. She has also headed up

AusAID’s North Asia Section. Early in 2000 she

was seconded to the United Nations Transitional

Administration in East Timor as the Chief of

Donor Coordination in the Office of the Special

Representative of the Secretary-General.

Catherine was appointed as the Regional

Assistance Mission Solomon Islands’ Development Coordinator, based in Honiara, from

January 2004 until March 2006. From March 2006 until October 2007 she was Assistant

Director General, Papua New Guinea Group. On Australia Day 2011, Catherine was awarded

a Public Service Medal for outstanding public service in leading Australia’s efforts in relation

to humanitarian aid and development assistance.

205MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

Octavia Borthwick, Assistant Director General, Papua New Guinea and Solomon Islands Branch

Octavia Borthwick is Assistant Director General

of the Papua New Guinea and Solomon

Islands Branch. She joined AusAID in February

2008 from the Department of Foreign Affairs

and Trade, where she spent her career working

on foreign and trade policy issues. With the

department, she was posted to Bangkok from

1997 to 2001 as First Secretary, later Counsellor,

Political and Economic, and had a number of

short-term missions including to Australia’s

mission to the United Nations in New York and

to the Australian Embassy in Rome. 

Note: Prior to February 2011, the agency’s executive comprised: Peter Baxter, Director

General; Catherine Walker, Deputy Director General, Africa, West Asia, Middle East and

Humanitarian Division; Blair Exell, Deputy Director General, Pacific and PNG Division;

Richard Moore, Deputy Director General, Asia Division; Robin Davies, Deputy Director

General, Sustainable Development and Partnerships Division; Murray Proctor, Deputy

Director General, Program Enabling Division; Jamie Clout, Deputy Director General,

Corporate Enabling Division.

Corporate reformDuring 2010–11, AusAID continued to pursue an extensive program of internal reform

to ensure the agency is able to deliver the government’s aid objectives and continue

to be efficient, well-managed, and capable of delivering real development outcomes.

Reforms have been focused on strengthening the agency’s management, corporate and

procurement capacity. The process was led by the Corporate Reform Committee, which

was chaired by the Director General.

During 2010, a major review was undertaken to improve the effectiveness of the aid

program’s use and remuneration of advisers. A review of the use of advisers confirmed that

the majority of positions are focused on high priority areas for partner governments. Of the

952 positions considered, it was recommended that 257 be phased out within two years.

A standardised Adviser Remuneration Framework was released in February 2011, which

articulates clear policy guidance on the use of advisers within the aid program and ensures

consistent fees and allowances are paid to advisers across the program. New adviser

contracts developed in line with the framework are demonstrating savings to the agency

of between 10 and 40 per cent of previous or proposed fees.

In May 2011, the Director General launched the first phase of AusAID’s new workforce

plan, together with the agency’s new Learning and Development Strategy 2011–2015.

The workforce plan identifies the actions needed to ensure the agency effectively manages

recruitment and retention of staff during a period of corporate growth. The learning and

development strategy will support the workforce plan in delivering a staffing profile with

206 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

strong skills in public sector management, aid management and sectoral expertise, and

enhanced leadership abilities.

In support of the newly introduced organisational structure, AusAID commissioned a

review of its broader governance arrangements, commenced an internal review of human

resource governance, and revised its business planning arrangements. The outcomes

of these activities have resulted in identifying a number of enhancements to agency

committee structures.

The agency has also focused efforts on improvements to procurement and expenditure.

Reviews of agency processes around activity analysis and program planning, selection,

negotiation and agreement management are being finalised and will inform improvements

that support the efficient expansion of the aid program over the next four years.

The future reform agenda will be heavily influenced by the outcomes of the independent

review of the Australian aid program, which was delivered to government in April 2011, and

which is expected to be released, along with the government’s response to the review, in

the second half of 2011. AusAID will use the outcomes of the review and the government’s

response to ensure the appropriate policies and management systems are in place to

manage a much larger aid program effectively and efficiently. It will also identify areas

where the agency needs to strengthen its capacity in the years ahead. 

Strategic planning frameworkAusAID’s strategic planning framework has been grounded in the Australian Government’s

2009 policy statement on Australia’s international development assistance. This statement

has formed the basis for AusAID’s country and regional strategies, and program enabling

strategies. Annual business unit plans developed at the start of the 2010–11 identified

critical outcomes against these strategies for the year, and enabled effective and efficient

budgeting, corporate planning, workforce planning, and delivery of corporate services in

support of the achievement of programs.

It is anticipated that the Australian Government will further develop its policy directions

for Australia’s international assistance as a result of the recent review of aid effectiveness.

AusAID will develop a new strategic plan to underpin the updated policy directions and to

ensure the agency can deliver effective outcomes as the program expands to 2015.

207MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

AusAID’s strategic planning framework is underpinned by the following policies and

strategies:

Policy statement on Australia’s International Development Assistance, in Budget,

Australia’s international development assistance (May 2009)

AusAID 2010: Director General’s blueprint (2007)

Building on the 2010 blueprint: a reform agenda for 2015 (2009)

Director General’s annual statement of priorities

Country/regional strategies

Program enabling strategies

Corporate enabling policies

Business unit plans

Section workplans

Individual performance and development plans

Aid advisory and coordination mechanisms

Development Effectiveness Steering CommitteeThe Development Effectiveness Steering Committee is responsible for strategic advice

to government on the aid program, especially on budget matters, and for ensuring

coordination of the program across government.

Chaired by AusAID’s Director General, the committee is composed of deputy secretaries of

the Department of the Prime Minister and Cabinet, the Treasury, the Department of Finance

and Deregulation, and the Department of Foreign Affairs and Trade, as well as AusAID’s

Deputy Director General of Corporate, Humanitarian and International Group.

The committee focuses on four themes:

• effectiveness

• whole-of-government country and regional strategies

• official development assistance budget strategy

• implementation of policy priorities.

208 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

The committee played an important role in 2010–11 in shaping and steering the future of

aid policy. At the Prime Minister’s request, the committee acted as a reference group for

the Independent Review of Aid Effectiveness. It also played a critical role in the formulation

of the government’s response to the review, as well as development of the 2011–12 aid

budget by reviewing and providing advice to the government on all aid budget proposals.

Internal auditDuring the year, AusAID’s internal audit, risk management and fraud control capacity were

strengthened considerably.

The Audit Committee was expanded and given a higher profile through the appointment

of an independent chair and an independent financial statements expert. As part of the

AusAID-wide organisational restructure in February 2011, the new position of Chief Auditor

was created, and at the same time, the Performance Review and Audit Section was

expanded to become a branch. The new Chief Auditor manages the Audit Branch, which is

comprised of three sections: the Internal Audit Section, the Risk Management Section and

the Fraud Control Section. Additional staff working in the Audit Branch reflect an increased

organisational focus on risk management and fraud control, including an expanded

capacity to support line areas on these topics.

Audit CommitteeSection 46 of the Financial Management and Accountability Act 1997 requires the Director

General to establish and maintain an Audit Committee with functions that include:

• assisting AusAID to comply with obligations under the Financial Management and

Accountability legislation

• providing a forum for communication between the Director General, senior managers

and AusAID’s internal and external auditors.

At 30 June 2011 the Audit Committee membership comprised:

• Mr Oliver Winder PSM, Chair and independent external member

• Mr James Batley PSM, Deputy Chair and AusAID Deputy Director General Asia Pacific and

Program Enabling Group

• Mr Len Early PSM, independent external member

• Mr David Lawler, independent external member

• Ms Jenny Morison, independent external member

• Mr Murray Proctor, AusAID First Assistant Director General Sectoral Policy Division

• Ms Lisa Rauter, AusAID Assistant Director General Africa and Middle East Branch.

AusAID’s Chief Auditor, the Chief Financial Officer, First Assistant Director General of the

Program Effectiveness and Performance Division, and representatives of the Australian

National Audit Office attended committee meetings as observers. The committee meets

209MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

five times a year in addition to a special financial statement meeting in August. In 2011 a

Financial Statements Sub-Committee was set up with Ms Jenny Morison as the Chair.

In 2010–11, the committee ensured AusAID complied with its obligations under the

legislation by reviewing and, where necessary, recommending improvements to

management systems and key business processes, the corporate governance framework

and financial reporting processes.

The committee also provided a forum for both formal and informal communication

between key stakeholders, including the Director General, the executive, senior managers,

the Audit Branch, other areas of AusAID with governance responsibilities and the Australian

National Audit Office.

In addition to performing these two key functions, the committee also provided

independent assurance to the Director General on AusAID’s risk management arrangements

(including fraud control), controls framework, public accountability responsibilities, and

internal and external audit activities.

In performing these roles and responsibilities, the committee contributed to strong audit

and governance arrangements for AusAID.

Internal Audit Branch The internal audit function in the Performance Review and Audit Section became the Internal

Audit Section in the Audit Branch in February 2011. The Internal Audit Section focuses on

improving the quality, accountability, efficiency and effectiveness of the functions and

processes used to manage, administer and account for the Australian aid program.

The section develops and manages the delivery of an internal audit program which is

designed to identify areas for improvement of AusAID’s administrative and program

functions and processes. The internal audit program is delivered using a combination of

internal resources and external providers.

In 2010–11, the annual internal audit and review program included:

• 14 reviews of business processes, systems and internal functions

• compliance audits of six commercial contractors, six non-government organisations and

six tertiary institutions

• eight performance audits of program administration.

The section provides support and advice to the Audit Committee and reports to the

committee on the outcome of audit activities.

Risk Management SectionEffective management of risk enables AusAID to work successfully in a complex,

challenging and changing environment to achieve aid and development outcomes. Risk

management is used by AusAID to identify and actively monitor the risks it faces, and make

informed decisions about managing those risks.

The risk management function in the Audit Section became the Risk Management Section

in the Audit Branch in February 2011. The new Risk Management Section is responsible for:

210 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

• providing advice and recommendations on risk-related issues to the AusAID Executive

and Audit Committee

• providing regular reporting and briefings on risk management in the Australian aid

program to the Minister, AusAID Executive and other relevant agencies

• developing and implementing AusAID’s risk management framework

• developing AusAID’s corporate strategic risk management plan

• developing and reviewing AusAID’s risk management policy, guidance and training material

• reviewing annual risk and fraud management plans for each post

• developing and facilitating risk management workshops with business areas to help

develop and understand comprehensive risk management plans

• delivering risk management training to AusAID and partners

• liaising with other donors and agencies on risk management practices and trends

• monitoring and reporting on the implementation of risk management in AusAID.

In 2010–11, there were 14 risk management awareness workshops conducted for staff in

Canberra as well as a number of workshops held at posts overseas.

Fraud Control SectionAusAID created the Fraud Control Section in February 2011, a stand-alone fraud control

function in the Audit Branch. The section is responsible for AusAID’s fraud control framework.

In 2010–11, the section continued to monitor implementation of AusAID’s 2009–2011 fraud

control plan. The plan, including a fraud risk assessment, was developed in accordance with

the Commonwealth Fraud Control Guidelines. It emphasises AusAID’s zero-tolerance of

fraud and the requirement that all cases of suspected and detected fraud be reported to the

Director of the Fraud Control Section. This requirement applies not just to that aid directly

delivered by AusAID but also to aid delivered through third parties such as non-government

organisations, contractors and tertiary institutions.

Where fraud is alleged, suspected or detected, Fraud Control Section ensures that:

• the case is investigated

• offenders are prosecuted wherever possible and appropriate

• the recovery of misappropriated funds or assets is pursued, as is the application of

appropriate penalties whenever possible.

Fraud control data is reported to the AusAID Executive and Audit Committee each quarter

and to the Australian Institute of Criminology each year.

In 2010–11, the Fraud Control Section participated in a survey as part of the Australian

National Audit Office’s Fraud Control in Australian Government Agencies audit.

Fraud awareness training is compulsory for AusAID staff, both in Australia and overseas. During

the year 10 fraud control training sessions were conducted in Canberra and 18 sessions and

workshops were conducted overseas. Fraud control training is mandatory before an overseas

posting. Fraud control is also included in all AusAID induction training for new staff.

211MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

Preventing fraudAusAID manages thousands of aid activities across more than 70 different countries, many of

which are inherently difficult environments in which to operate. Governance arrangements are

often weak and attitudes towards accountability and transparency are not as developed as those

in Australia.

In such operating environments, there is a much higher risk of fraud than in Australia.

For this reason AusAID has strong systems and procedures in place for managing the

delivery of Australian aid.

AusAID seeks to reduce the risk of fraud in the followings ways:

• a comprehensive fraud control plan and fraud policy statement are in place, together

with fraud control policies and guidelines, which are regularly reviewed and updated

• overseas posts have risk and fraud management plans which are updated annually

• aid programs are designed to minimise the risks from fraud as much as possible

• fraud awareness training is mandatory for AusAID staff, both in Australia and overseas.

AusAID also provides training to contractors and other government and non-government

organisations funded under the Australian aid program on their responsibilities for

fraud control

• due diligence checks are carried out on contractors, non-government organisations and

others involved in the aid program. Aid programs are designed to minimise the risks from fraud

• AusAID’s annual internal audit program examines compliance by non-government

organisations, commercial contractors and tertiary institutions with financial, contractual and

activity management requirements, including fraud reporting and risk management.

In August 2010, AusAID signed a memorandum of understanding with the Integrity Vice

Presidency of the World Bank to share information and cooperate in detecting, substantiating

and preventing fraud and corruption in connection with the work of both organisations.

Fraud statistics for 2010–11 In 2010–11, 149 cases of alleged, suspected or detected fraud were reported to AusAID. Of

these, 24 (16 per cent) were subsequently found not to have involved fraud and it is likely

that, as they are further investigated, other cases will be cleared of fraud.

The 125 cases currently under investigation typically relate to the following types of alleged,

suspected or detected fraud:

• falsification of documentation relating to small grants applications and acquittals

• alteration of payee and payment amounts on cheques

• collusion among tenderers and falsification of quotes submitted in tender processes

• theft of vehicles, laptops, project materials

• falsification of qualifications relating to scholarship applications.

AusAID estimates that the amount involved in the 2010–11 cases is approximately

AUD $1 683 840. Of this amount, AUD $419 715 has been recovered or prevented

212 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

and the potential net loss to AusAID estimated to be approximately AUD $1 264 125.

This represents 0.028 per cent of the $4.498 billion appropriated to AusAID in 2010–11.

In past years potential losses as a consequence of reported fraud equated to around 0.02

per cent of the aid funds appropriate to AusAID. This continued to be the case in 2010–11.

FIGURE 14: LOCATION OF 149 FRAUD CASES REPORTED IN 2010–11

PNG 60

Zimbabwe 1Tonga 2

Vietnam 1

Indonesia 18USA 1

Switzerland 1Sri Lanka 1

Solomon Islands 15

Mozambique 2Noumea 1

East Timor 7

Nigeria 1

Cambodia 6

Mali 1

Vanuatu 6

Malawi 1Australia 3

Bangladesh 1Nepal 3

Burma 2Philippines 3

Pakistan 3Afghanistan 1

Nauru 2Laos 2Iraq 2Fiji 2

Certification of compliance with the Commonwealth Fraud Control Guidelines 2011I certify that I am satisfied that for the 2010–11 financial year, AusAID has complied with the requirements of the Commonwealth Fraud Control Guidelines 2011, including the agency’s responsibilities for:

(a) fraud prevention

(b) fraud investigation case handling

(c) reporting of fraud information

(d) fraud control training.

Peter Baxter Director General

213MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

Ethics and valuesAusAID promotes the ethics contained in the Australian Public Service Values and Code of

Conduct as set out in the Public Service Act 1999. It also promotes the values identified in

AusAID’s Enterprise Agreement 2009–2011.

Agency policies and processes support strong ethics and values in the workplace.

This includes encouraging a diverse workplace that is free from discrimination and

harassment. Internal policies provide guidance for staff including procedures for:

• offers of gifts, benefits, hospitality and sponsored travel

• conflict of interest and SES declaration of personal interests

• AusAID’s code of conduct for overseas employees

• contracting

• eliminating workplace harassment and bullying.

AusAID maintains high ethical standards through induction courses for new employees,

training for employees and whole-of-government officials before overseas deployment,

and through individual performance agreements. The focus of training includes code of

conduct issues, fraud awareness and compliance with AusAID’s child protection policy.

AusAID’s relationship with implementing partners is based around shared values and a

commitment to achieving the objectives of the aid program. Agreements and contracts

clearly define the agency’s expectations for partners to meet the highest standards of

ethical behaviour. Agreements with contractors and other government agencies and non-

government organisations stipulate that contractor personnel and whole-of-government

deployees working on AusAID projects must conduct themselves in a manner consistent

with the Public Service Act 1999, and in accordance with Australian Public Service Values

and Code of Conduct.

214 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

External scrutiny

Judicial scrutinyThere were no judicial decisions or decisions of administrative tribunals in 2010–11 that had,

or may have, a significant impact on the operations of the agency.

OmbudsmanThe Commonwealth Ombudsman conducted no formal investigations of AusAID’s activities

during the year.

Office of the Australian Information CommissionerThe Office of the Australian Information Commissioner has undertaken two assessments on

decisions made by AusAID officials on Freedom of Information cases.

Parliamentary committeesIn 2010–11, AusAID contributed to six parliamentary committees with either written

submissions, appearances or briefings associated with parliamentary committee travel.

These included:

• Senate Foreign Affairs, Defence and Trade Committee – Senate Budget Estimates

• Senate Foreign Affairs, Defence and Trade Committee – Senate Additional Estimates

• Senate Foreign Affairs, Defence and Trade Committee – Senate Estimates

• House Parliamentary Committee on Petitions

• House Committee on Health and Ageing inquiry into regional health issues jointly

affecting Australia and the South Pacific

• Joint Foreign Affairs, Defence and Trade Committee inquiry into Australia’s relationship

with the countries of Africa.

Reports by the Auditor-GeneralDuring 2010–11, the Australian National Audit Office tabled in parliament one report directly

relating to AusAID’s operations:

• Audit Report No. 44 2010–11, AusAID’s management of tertiary training assistance.

AusAID was also involved in the following cross-portfolio performance reviews conducted

by the Australian National Audit Office:

• Audit Report No. 7 2010–11, Confidentiality in government contracts: Senate Order for

departmental and agency contracts (calendar year 2009 compliance).

Details of these reports can be found on the Australian National Audit Office website.

215MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

Management of human resourcesIn 2010–11, important people management initiatives were advanced including launching

the agency’s first workforce plan and a new learning and development strategy. These

aim to strengthen our capability to deliver an effective and expanding aid program which

reduces poverty and ensures value for money.

Workforce planning As a newly established executive agency, one of the important corporate activities

undertaken in 2010 was the release of an agency-wide workforce plan. AusAID’s Workforce

Plan – Phase One 2011 followed extensive consultation with staff to ensure the document

reflected corporate knowledge. The plan was also informed by analysis of business drivers,

future workforce challenges, skills assessment and current and future workforce demand

and supply data.

In 2011–12, the workforce plan will integrate with the agency’s business unit planning

process to inform decision making on strategic and operational directions, and align with

any APS wide workforce planning framework.

Remuneration AusAID’s staff are appointed under the Public Service Act 1999 and covered by conditions

set out in the AusAID Enterprise Agreement 2009–2011 and Australian workplace

agreements. Remuneration for senior executive service (SES) staff is negotiated under

common law agreements. The terms and conditions of the Director General are

determined by the Remuneration Tribunal.

Statistics on SES salaries in 2010–11 are in section 5, appendix D.

Performance pay AusAID recognises effective performance through salary advancement. AusAID’s Enterprise

Agreement 2009–2011 also provides for payment of a 2 per cent bonus for all staff

rated fully effective with service of greater than 12 months at the top pay point of each

classification. This pay bonus does not count for salary. From 15 January 2011 the agency

incorporated additional SES performance pay bonuses into new SES remuneration rates

(see section 5, appendix D).

In accordance with the Australian Government employment framework, AusAID

uses flexibility agreements under the Enterprise Agreement 2009–2011 to adapt

remuneration and employment conditions to the agency’s needs and circumstances.

In 2011–12, Australian workplace agreements will continue to be replaced. At 30 June

2011, 52 staff were employed under flexibility agreements.

The salary ranges and number of APS employees by classification level covered by

enterprise or collective agreements, section 24(1) determinations, common law agreements

and Australian workplace agreements is included at section 5, appendix D.

216 AUSAID ANNUAL REPORT 10|11

AusAID Workforce Plan — Phase One 2011AusAID’s Workforce Plan — Phase One 2011 was launched by the Director General on 5 May.

The plan aims to strengthen AusAID’s workforce capacity and capability to deliver an expanded

and effective aid program to 2015. It describes the context within which we expect to be

working, identifies challenges we face and sets out a range of initiatives in workforce planning,

recruitment, retention, people management and learning and development.

Our growing aid program and changing approaches to aid delivery means AusAID will require its

workforce to become more professional and specialised with diverse staff based in Canberra and

across a wide range of posts. We will need stronger capabilities in public policy and in the core

operations of the aid program. Our workforce plan emphasises both core public sector skills and

aid management capabilities. Underpinning both are the foundation skills required by all APS

employees, such as strategic thinking, policy development and advice, effective writing, analysis

and judgement, cultural interpersonal effectiveness, team work and collaboration, working in

partnership, and negotiation and relationship management. All will be central to AusAID’s future

success and effectiveness.

Key workforce strengthening initiatives to be undertaken over 2011 include:

• developing a systematic approach to workforce planning to better forecast requirements

related to critical job roles and capabilities

• developing an agency-wide recruitment strategy and improved recruitment processes to

ensure we have no more than 10 per cent vacancies

• strengthening our management and leadership by enhancing performance feedback and

providing targeted learning and development programs.

SE

CT

ION

3

Non-salary benefits under the enterprise agreement, common law agreements and Australian workplace agreements AusAID provides a range of mechanisms to assist staff flexibility, including home-based

work, part-time and condensed hours, job sharing, flextime and time off in-lieu. Other

benefits include half-pay or extended maternity leave, paternity leave, adoption leave

and access to purchased leave. In 2010–11, AusAID supported health and wellbeing

through a Live Well Work Well program. All employees are given paid time off for the

working days between Christmas and New Year’s Day.

Non-salary benefits covered in determinations and common law agreements for SES

employees include a vehicle and fuel card, car parking at work, mobile phone, airline club

membership and home access to office systems.

The enterprise agreement also provides a package of conditions for staff posted overseas,

which is intended to acknowledge the sometimes difficult circumstances for attaining

work/life balance while on posting.

Enterprise agreement Bargaining began during the year for a new enterprise agreement to replace the current

agreement which expired on 30 June. A Notice of Employee Representational Rights was

issued on 4 May and was followed by three weeks of intensive negotiations between the

agency and staff representatives. Formal bargaining concluded on 8 June. At the end of the

financial year, the proposed agreement—AusAID enterprise agreement 2011–2014—had

been submitted to government for approval. The current agreement—AusAID enterprise

agreement 2009–2011—will continue to operate until the new workplace arrangements are

endorsed by staff and approved by Fair Work Australia.

Learning and development In 2010–11, AusAID increased its investment in developing and training staff and launched

a major new Learning and Development Strategy 2011–2015 to strengthen the agency’s

capacity to deliver an expanded aid program.

AusAID’s business is changing and there has been a significant increase in staff. To

effectively deliver on the expanded program, learning and development is now a major

priority. The learning and development strategy supports the implementation of the

workforce plan and commits management to ensuring professional development is a

fundamental part of AusAID’s culture. The focus of the strategy is to build strong public

sector and aid management skills, expertise in priority sectors and enhanced leadership and

management abilities. Learning is increasingly aligned to career goals and capability gaps

identified in individual performance agreements. Traditional face-to-face learning is being

enhanced by online learning, and e-learning modules are under development.

218 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

Key development achievements in 2010–11 included:

• strengthening core agency and public sector skills by providing 501 training opportunities

(up from 376 last year) and achieving an average of five training days for each employee

(up from four last year). Over 3520 staff were supported to participate in training, which is

an increase of 20 per cent on last year

• implementing a new automated learning management system to support staff to manage

their own learning plans, improve management and reporting of training and host online

learning resources

• defining and implementing learning pathways, which clearly articulate the agency’s

expectations and support for learning and development, and are framed around AusAID’s

requirements for strong public sector and international development skills. The pathways

are based on the APS Integrated Leadership System and help staff to develop specific

capabilities identified during discussions with supervisors.

A suite of new tailored leadership development programs was implemented to develop and

support strategic leadership capabilities, and effectively manage the organisational change

needed to implement an expanding aid program with increased public scrutiny. This is not

traditional leadership training. The Strategic Change Leadership Program is founded on a

practical approach to learning which combines leadership capability and strategies for change.

TABLE 2: LEARNING AND DEVELOPMENT ACTIVITY SUMMARY

Q1 Q2 Q3 Q4 2010–11

Average days learning per employee* 1.59 1.33 0.95 1.40 5.25

Number of training opportunities 127 110 115 149 501

*Employee includes all staff in Australia and at post at 21 December 2010.

FIGURE 15: AUSAID LEARNING AND DEVELOPMENT PARTICIPANTS FOR 2010–11

Public sector skills 885

ACC foundationtraining course 110

External programs 308

Graduate training program 233

Induction program 126Overseas based training* 301

Pre-deploymenttraining 556

Management andleadership 114

Program managementtraining 741

Thematic/conferencesand workshops 146

* Includes overseas based staff training in Canberra and at post.

219MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

Occupational health and safety (OHS) and staff welfare AusAID is committed to providing a safe and healthy workplace by maintaining OHS policies

and procedures. The OHS Committee meets quarterly and ensures consultation between

management and staff on OHS matters. There are 12 designated work groups in AusAID

Canberra with health and safety representatives. Larger work areas also have a deputy

health and safety officer. There are currently 11 elected or nominated health and safety

representatives participating as members of the OHS Committee.

Measures to address health, safety and welfare in the workplace in 2010–11 included:

• recruiting a permanent in-house psychologist and enhancing the external employee

assistance program to provide counselling services for staff working in Australia and

overseas

• completing 146 ergonomic workstation assessments and three full OHS assessments of

new work areas

• undertaking induction briefings and ongoing training to raise OHS awareness

• providing OHS training to overseas based staff during corporate training programs, and

facilitating a number of office safety workshops

• providing ergonomic information sessions to support staff relocated within

Canberra offices.

AusAID’s human resources branch manages staff welfare issues by providing confidential

advice, maintaining an anti-bullying and harassment contact officers network and through

referrals, information and support.

AusAID is committed to the safety and security of its officials in Australia and those

working overseas. The agency’s overseas security risk management framework outlines

the processes, systems, standards and responsibilities to ensure AusAID meets its duty of

care and security responsibilities. AusAID closely monitors the security environment in the

locations that its officials operate and ensures all necessary protective security measures are

in place to mitigate the risks. Comprehensive security training, including specialised training

for those deployed to high-threat locations, is also provided.

Reporting requirements under the ActNo notices were issued under section 29, section 46 or section 47 of the Public Service

Act 1999. No directions were given to the Department of Foreign Affairs and Trade under

section 45. There were no investigations conducted. One incident required a section 68

notice to Comcare during the reporting period.

Live Well Work Well In 2010–11, AusAID implemented the Live Well Work Well staff health and wellbeing

program. A month of activities focused on employee health and included:

220 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

• vaccinating 330 staff against influenza

• vaccinating 120 staff against whopping cough

• subsidising yoga and Pilates classes

• subsidising eyesight testing and contributing towards the costs of glasses and contact

lenses for screen-based work

• conducting health and wellbeing seminars, including presentations on nutrition, mental

health, work/life balance and health risks associated with sedentary lifestyles, sleep

deprivation, dehydration, smoking, stress and excessive alcohol consumption

• providing fruit

• providing health advice and health assessments for 280 staff

• supporting World No Tobacco Day and smokers to quit.

For the first time, 259 staff members in Canberra and at post participated in the Global

Corporate Challenge, a team based competition where staff log their daily steps on

a pedometer and walk around the world virtually in 16 weeks.

AusAID also participates in the annual Ride to Work promotion encouraging staff to be

involved in the community activity and breakfast.

Live Well Work Well, Global Corporate Challenge and Ride to Work highlight the importance

of staff health, wellbeing and general fitness.

Recruitment During the year, recruitment was supported by the broader context of AusAID’s move to an

executive agency and the release of the first agency-wide workforce plan. This plan focuses

on ensuring we have the right people, with the right skills in the right jobs, and AusAID’s

recruitment practices support a key part of implementing this strategy.

The recruitment section of AusAID conducted eight bulk recruitment rounds throughout

the year, which promoted high achieving internal candidates and attracted new employees

at the APS 5 and 6, and Executive 1 and 2 levels. AusAID also held SES recruitment rounds,

which were supported by an external and independent recruitment company. The agency

invests in strong recruitment practices that are transparent and uphold merit-based

principles. Along side the bulk recruitment rounds, specific divisional-led recruitment

processes were also held to ensure that demand is met for employees with specific

development, corporate and other specialist skill sets.

Overall recruitment to AusAID continues to be a highly competitive process with a large

number of applicants seeking to work within a diverse environment. In 2010–11, 365

new starters were recruited to the agency (239 ongoing and 126 non-ongoing).

221MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

Graduate program A graduate recruitment campaign in 2010 resulted in an intake of 19 graduates in January

2011 from a total of 1360 applicants. The successful applicants came from a variety of

backgrounds with qualifications in areas such as international relations, development

studies, politics, commerce, law, Asian studies, history, psychology, natural resource

management, anthropology, creative industries, community development, education

and business.

The level of work experience also varied significantly, ranging from recent

graduates with only limited workforce experience to those who have been working

internationally or in their chosen field for several years.

The successful candidates were selected for their skills, experience, qualifications

and ability to contribute effectively to AusAID’s work. One initiative in 2010–11 was

the inclusion of a corporate graduate stream through which a number of graduates

completed placements in corporate areas including human resources and the finance

branch.

The 2011 graduate program commenced on 9 February 2011 and will conclude on

24 December 2011. It provides three job placements over 11 months across AusAID’s

business areas. In each rotation the graduates undertake a specifically designed work

plan to give them a comprehensive understanding of AusAID and its

whole-of-government engagement in delivering the aid program. The graduates

participate in an intensive induction program that presents an overview of AusAID’s

role in developing aid policy and delivering the aid program, and also undertake formal

training blocks between each placement.

Significant planning was undertaken during the year to renew AusAID’s graduate

program for future years. The program is an effective way of recruiting high calibre

staff who can be retained and promoted in as their experience develops. In 2011–12,

AusAID will support a significantly expanded graduate program which extends across

two years.

222 AUSAID ANNUAL REPORT 10|11

Jane Racancoj with Australian Volunteers International’s Chairman, Richard Refshauge, and Manager, Karla Wesley, at the launch of Australian Volunteers for International Development at Parliament House in Canberra in May

Photo: Irene Lorbergs

Graduates kick-start their careers with AusAIDAusAID’s graduate program attracts many applicants each year on the strength of its reputation

for launching careers in international development and the APS.

Jane Racancoj was a graduate in the 2010 program. With a Masters Degree in International

Environmental Law, she spent six years with the United Nations Development Program and two years

working and learning Spanish in Guatemala before turning to AusAID to advance her career. Jane

undertook three rotations while on the program working in the Climate Change and Environment

Branch, the Indonesia and East Timor Branch, and the Volunteers and Business Partnerships Section.

Through the graduate program, Jane has deepened her knowledge of international development

and gained valuable experience in working for government. In particular, she has gained

knowledge and skills in the effective delivery of aid and the crucial importance of working

closely with partner governments and organisations to achieve development results.

On completion of her program, Jane has made a significant contribution to the Volunteers and

Business Partnerships Section where she now works as a program officer following a promotion to

the APS 6 level in 2011. She has been involved in developing and implementing the new Australian

Volunteers for International Development program, which is linking Australian volunteers directly to

the aid program. She draws a deep satisfaction from being involved with Australian volunteers who

willingly share their time and experience with people in developing countries.

In the years to come, Jane aims to progress her career through experiences in the thematic,

country or global programs areas as well as on a posting. It is because of these career

opportunities that Jane believes AusAID is the most ideal place for her to pursue her ambitions

and interest in development.

SE

CT

ION

3

Workplace diversity and disability AusAID’s workplace diversity program supports a fair and equitable work environment that

is free from discrimination, harassment and bullying. As well as actions to better balance

personal and professional commitments, the program commits to targeted employment

strategies for Indigenous employees, employees with disability and mature aged workers.

In 2010–11, AusAID received valuable advice and support from the ACT Deafness Society,

Australian Network on Disability, Vision Australia, Reconciliation Australia and the Australian

Public Service Commission on a range of workplace diversity issues.

Indigenous employees AusAID launched its Reconciliation Action Plan and Indigenous Employment Strategy

during National Reconciliation Week in June 2011 with an all staff event to celebrate these

important commitments and a permanent display of the Aboriginal and Torres Strait Islander

flags alongside the Australian ensign in the foyer of AusAID’s headquarters in Canberra.

The plan outlines AusAID’s commitment to bridging the gap between Indigenous and non-

Indigenous Australians. Through 2011–12, AusAID will work to increase and use Indigenous

knowledge and community development experience within the agency. The plan also

continues AusAID’s commitment to working with Indigenous community volunteers to

share approaches and learnings on domestic and international community development.

AusAID’s Indigenous Employment Strategy 2011–2015 focuses on improvements to the

workplace environment as well as attraction, recruitment, retention and development of

Indigenous employees. This will help the agency reach its target of 2.7 per cent Indigenous

employees by 2015.

Cross cultural training is a core learning requirement for new staff, new managers and

staff preparing for posting overseas. The training is featured in AusAID’s learning and

development strategy, and promotes and supports workplace diversity issues and the

special place of Aboriginal and Torres Strait Islanders as Australia’s first people.

224 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

Stephanie Harvey, Indigenous Community Volunteers CEO, speaks at the launch of AusAID’s Reconciliation Action Plan and Indigenous Employment Strategy during National Reconciliation Week in June 2011. Other speakers included AusAID’s Director General Peter Baxter who launched the plan and strategy as well as Leslie O’Donoghue of the AusAID Indigenous Employees Network, and Robert Tranter, Assistant Director General, Human Resources Branch

Photo: Lucy Horodny, AusAID

Employees with disability The AusAID Disability Action Plan 2007–2010 outlines the agency’s ongoing commitment

to meeting the needs of people with disability through reasonable adjustments in the work

environment, employment procedures, staff management, training and development. The action

plan is consistent with the Disability Discrimination Act 1992 and reflects the agency’s role as

an employer and purchaser of services. AusAID is in the process of renewing the plan and will

develop a revised version in consultation with staff that will maintain the agency’s commitment

to equity and diversity principles in the workplace.

During the year AusAID joined the Australian Network on Disability as a gold member and is

working with the network to increase accessibility and support in the workplace for AusAID

employees with disability.

225MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

Awards

Australia Day Achievement AwardsAustralia Day Achievement Awards are presented to staff who have made an especially

valuable contribution to AusAID over the past year or number of years. The Director General

presented 11 awards in 2010–11, comprising eight team awards and seven individual

awards. This year the Director General recognised individuals who contributed across the

agency, including a long-term employee who provided exceptional corporate support for

over 28 years, two overseas-based staff for their outstanding work, exemplary leadership

and program area work, and awards for teams such as that responsible for AusAID’s

response to the Pakistan floods.

Australia Day Public Service MedalCatherine Walker, First Assistant Director General, Africa, West Asia, Middle East and

Humanitarian Division, was awarded a Public Service Medal on Australia Day for

outstanding public service in leading Australia’s efforts in relation to humanitarian aid and

development assistance.

The medal recognises her almost 20 years experience working on aid and humanitarian

issues with AusAID, which include major contributions to the development of AusAID’s

programs in Afghanistan, Pakistan and Africa. Catherine also served overseas as RAMSI

Development Coordinator in the Solomon Islands and in the UN Transitional Administration

in East Timor as the Chief of Donor Coordination.

Grassroots Giving AusAID staff contribute to the community in a number of ways. In 2010–11, the agency’s

workplace giving program, Grassroots Giving, continued to expand with staff pledging

fortnightly donations to charitable organisations with deductible gift recipient status. In

2009–10, AusAID staff donated a total of $912 each fortnight. In 2010–11, staff donations

more than doubled to more than $2000 each fortnight. Staff elect which organisations they

wish to support and are able to read about the difference the donations are making through

a quarterly staff newsletter. New staff are invited to sign up to participate in Grassroots Giving.

In 2010–11, 38 staff made donations through AusAID’s coordinated blood drives with the

Australian Red Cross.

AusAID staff also donated to the annual Christmas Giving Tree and made charitable

donations in response to national and international disasters. OzHarvest is also promoted to

staff as an organisation that redistributes food in Canberra.

226 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

Staff consultations In 2010–11, AusAID established a consultative forum on operational and workplace matters

which impact AusAID employees. The forum considers:

• collective agreement implementation, operation or interpretation

• processes for managing significant organisational or technological change

• policies and guidelines impacting on conditions of employment

• processes for managing accommodation

• implementing government policies and programs that impact on employment

conditions.

Elections were held for two staff representatives to join two staff delegate committee

members and two SES officers as the forum members. Along with the OHS Committee,

the forum ensures staff have a mechanism to raise staffing issues.

227MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

Purchasing and assets

PurchasingIn 2010–11, AusAID entered into 2763 new agreements to deliver the aid program to a value

of approximately $4.06 billion. While this is a decrease in the number of agreements entered

into (of 16.25 per cent from the 2009–10 financial year), the total value of these agreements

has increased by 62.4 per cent from last year’s total value of $2.5 billion. Entering into fewer

but higher value agreements forms part of AusAID’s strategy for managing an increasing aid

budget. Of these agreements, 1351 were with other Australian Government departments

(an increase of 7.39 per cent), non-government organisations, multilateral agencies and

partner governments totalling approximately $3.14 billion (an increase of 84.7 per cent).

The remainder were contracts with commercial entities. At 30 June 2011, AusAID was

managing 6097 ongoing agreements (an increase of 49 per cent) totalling $13.29 billion

(an increase of 35.6 per cent). Of these, 3105 were with non-commercial organisations,

totalling $9.21 billion in value (an increase of 25 per cent in number of agreements and

41 per cent in total value).

Procurement contracts awarded and managedA total of 1432 new procurement contracts were entered into during the year with a

value of approximately $920 million. The number of new contracts decreased from the

previous year when 1954 procurement contracts were entered into with a value of about

$798 million. At 30 June 2011, AusAID was managing approximately 2683 procurement

contracts, with a total value of about $4.08 billion.

Service orders issued under AusAID’s period offers made up 56.6 per cent of all new

procurement contracts by number. Period offers are standing offers with individuals and

organisations to provide short-term specialist advice and services on an as-required basis

for set fees. There were 274 period offer agreements (decreasing from 298) including six

strategic alliances with organisations in place at 30 June 2011, providing access to 749

specified contractors (decreasing from 793) across 26 development sectors (decreasing

from 28). An open tender process is used to assess personnel for technical quality and

value for money. The decrease in numbers compared to 2009–10 is partly due to AusAID’s

decision to retender all aid related period offers under a new overarching Aid Advisory

Services (AAS) Standing Offer in late 2011. Existing aid related period offers that expire

before the AAS is tendered will be replaced by the AAS Standing Offer when it is introduced.

Purchasing for departmental purposes—consultantsDuring 2010–11, 45 new consultancy contracts were entered into involving total actual

expenditure of $1 884 291. The number of new consultancies increased from the previous

year when 14 consultancies were entered into with a value of $827 191. In addition,

14 ongoing consultancy contracts were active during the year, involving total actual

228 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

expenditure of $613 171. Details of each new consultancy worth $10 000 or more are

provided in appendix G.

There has been a significant increase since 2009–10 in the reported amount and value of

AusAID consultancies. This can be attributed in part to improved procedures for classifying

arrangements as consultancies and increased need for expert and independent consultancy

services as the size and complexity of the aid program increases.

The selection process for consultancy services is consistent with the Commonwealth

Procurement Guidelines (December 2008). AusAID’s reporting of consultancy services is

consistent with the document Requirements for Annual Reports from the Department of

the Prime Minister and Cabinet (July 2011).

Details of contracts, agreements and consultantsThis annual report contains information about actual expenditure on contracts for

consultancies in 2010–11. Information on the value of contracts and consultancies is

available on the AusTender website www.tenders.gov.au

In accordance with the Senate Order on Departmental and Agency Contracts, all contracts,

agreements and consultancies let over $100 000 are also listed each calendar and financial

year on AusAID’s website. The Senate Order Listing for 2010–11 will be tabled in Parliament

in August 2011 and available at www.ausaid.gov.au in September 2011.

Exempt contractsNo contracts in excess of $10 000 or standing offers were exempted by the Director

General from being published in AusTender.

Australian National Audit Office access clauses

In 2010–11, all contracts of $100 000 or more (inclusive of GST) specified that the Auditor

General be given access to the contractor’s premises.

Agreements Policy (including grants and procurement)AusAID has a well established legal and policy framework that underpins the administration

of procurement and grant funding across the aid program. Although official development

assistance is technically exempt from many of the mandatory requirements in the

Commonwealth Procurement Guidelines and Commonwealth Grant Guidelines, AusAID

applies these requirements as a matter of good practice. AusAID’s Chief Executive

Instructions require all staff to act in accordance with these guidelines. Both sets of

guidelines also provide additional specific guidance on how AusAID achieves value for

money. Broadly, both endorse using competitive market forces where appropriate,

holistic value for money considerations (fit for purpose, not just the cheapest), clearly

articulated and measurable benefits against which outcomes can be measured, and

strong risk practices.

229MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

To ensure alignment with the Commonwealth Financial Framework, AusAID streamlined

its own agreement processes in 2010–11 into an overarching agreements framework. This

ensures the most appropriate funding mechanism is used for each individual activity. The

main types of funding mechanisms used by AusAID are procurements, grants and whole-

of-government agreements. These reflect the way in which AusAID now delivers the aid

program, acknowledging a wider range of delivery partners.

As funding to these partners, non-government organisations, scholarship programs,

multilateral organisations and through partner government systems has increased, the

agency has become less reliant on commercial firms to deliver Australian aid. Since 2005,

the proportion of AusAID expenditure through commercial contractors has fallen from

41 per cent to 22 per cent.

AusAID’s business processes for conducting procurements are designed to achieve

value for money by encouraging competition, promoting efficient use of resources

and transparent decision making. AusAID’s processes for procurements vary depending

on whether a procurement is large value (greater than $500 000 for aid program

procurements) or small value (less than $500 000).

AusAID’s procurement and grant administration processes sit beside other AusAID

mechanisms to ensure aid quality and value for money. The investment of Australian aid

money is well protected by strong standard agreement clauses, risk assessment and due

diligence checking before entering into new agreements, while regular audits, staged

aid quality reviews and performance assessments are conducted both during and after

implementation of an agreement.

During 2010–11, AusAID undertook a review of procurement and agreements to assess

the capacity of current practices, systems and workforce competency levels to deliver

value for money. The recommendations arising from the review will consider how strongly

these items align with the guidance laid out in the Commonwealth’s financial policy and

regulatory framework outlined above.

The review has provided preliminary findings which confirm that AusAID’s devolved

management model for managing procurement and grants processes reflects good

practice and that our systems broadly support this model. The initial findings also identified

areas that need refinement under the four broad headings of people, strategy, processes

and technology. Particular areas for consideration included ensuring our agreements

processes are proportional to the risk and scale of the aid spending and investing more in

procurement and project management skills and technical support systems.

The findings are in line with reforms already underway in the agency and are consistent with

challenges in procurement practice experienced across the Commonwealth, as reflected in

recent analysis conducted by the Department of Finance and Deregulation. AusAID’s formal

response to the review is in train.

230 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

Australian National Audit Office access clausesIn 2010–11, all contracts of $100 000 or more (inclusive of GST) specified that the Auditor

General be given access to the contractor’s premises.

AssetsAusAID held $115 million in departmental assets at 30 June 2011. These included financial

assets such as cash and receivables and non-financial assets such as leasehold improvements,

infrastructure, plant and equipment and computer software. During the year we reviewed

our capital management plan, which forecast our expenditure on major capital items such as

office fit outs, office equipment and computer software over the next five years.

Property managementAusAID’s Property and Facilities Management Section provides strategic property and asset

management services to maximise the efficiency of our property portfolio around the

world. This ensures that responsiveness and integrated services to staff are maintained at

consistently high levels wherever we are located.

All overseas property is managed in accordance with the Australian Public Service standards,

legislative requirements, the Building Code of Australia and Australian standards. During

the year AusAID established a strategic property management plan and completed fit out

projects for new or expanded offices in Canberra and overseas including, Tarawa, Suva,

Harare, Port of Spain, Accra, Addis Ababa, Pretoria, Islamabad, Hanoi and Nairobi.

AusAID is located in two buildings in Canberra, at 255 London Circuit and 20 Allara Street,

and we expect to occupy a third building at 40 Allara Street in the next 12 months. In addition,

AusAID manages office and residential accommodation across 40 countries overseas.

231MANAGEMENT AND ACCOUNTABILITY

SE

CT

ION

3

TABLE 3: OVERSEAS OFFICES AND RESIDENTIAL ACCOMMODATION

CountryNumber of Offices

Number of Residences Comment

Afghanistan 1 1 Residential accommodation is shared by a number of staff in Afghanistan

Bangladesh 1 2

Burma 1 2

Cambodia 1 3

Chile 1 1

China 1 2

East Timor 2 6

Egypt 1 0

Ethiopia 1 1

Fiji 1 9

France 1 1 The Australian Government is represented by an AusAID staff member at the Development Assistance Committee of the Organisation for Economic Co-operation and Development. The Committee is a forum comprising 23 donor members of the Organisation for Economic Co-operation and Development and an important partner for Australia

Ghana 1 1

India 1 1

Indonesia  3 40

Iraq  1 1

Italy 1 0 The Australian Government is represented by an AusAID staff member on the Global Crop Diversity Trust

Kenya 2 5

Kiribati 2 2

Laos 1 3

Micronesia

Nauru 1 1

Nepal 1 1

New Caledonia 1 0 AusAID manages the selection and departure of Australian Development Scholarship recipients as well as the arrival and support of Australian Regional Development Scholarship recipients

Pakistan 1 2

Palestinian Territories 1 0

232 AUSAID ANNUAL REPORT 10|11

SE

CT

ION

3

CountryNumber of Offices

Number of Residences Comment

Papua New Guinea  3 95 (in Port Moresby)

10 (in Provinces)

AusAID manages property for whole-of-government partners in Papua New Guinea

Philippines  1 7

Samoa 1 2

Seychelles 0 1

Solomon Islands 3 28

South Africa 1 6

Sri Lanka 1 3

Switzerland 1 1 Representation and engagement with the United Nations and key international non-government organisations, and to strengthen partnerships on development and humanitarian matters

Thailand 1 1

Trinidad and Tobago 1 1

Tonga 1 2

United States of America

2 2 Representation and engagement at United Nations meetings, and to strengthen partnerships with United Nations development and humanitarian agencies

Vanuatu 2 6

Vietnam 1 5

Zimbabwe 1 2

233MANAGEMENT AND ACCOUNTABILITY