AusAID / NGO
Committee for Development
Cooperation
A Joint Committee of the Australian Agency for International Development and
Australian Non-Government Organisations
Minutes of the 139th Committee for Development Cooperation (CDC)
Meeting held on 16 October 2013
AusAID CDC Members
Christina Munzer (Chair)
Helen Cheney (AusAID)
NGO Members
Misha Coleman (Act for Peace)
John Deane (ABM)
Rob Floyd (UnitingWorld)
Andrew Newmarch (World Vision)
Apologies
Gary Powell (AusAID)
Simon Cann-Evans (AusAID)
Chris Adams (ACFID)
Secretariat
Katharina Dollmann (AusAID)
Ruth Megirian (AusAID)
Paula Claudianos (AusAID)
Beth Sargent (ACFID)
Observers
Emily Edwards (AusAID)
Joanna Larvin (AusAID)
Katherine West (AusAID)
Joanna Lindner-Pradela (ACFID)
1. Welcome Remarks
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The Chair acknowledged the Ngunnawal and Ngambri people who are the
traditional owners of the land upon which the meeting takes place.
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The Chair gave apologies from Gary Powell, Simon Cann-Evans, Chris Adams
and also Marc Purcell (who has been a regular observer).
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The Chair noted that this was Katharina Dollmann’s last CDC meeting before
departing on maternity leave. The meeting thanked Katharina for her work with
the CDC and accreditation over the past 2 years, and wished her well.
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The Chair also advised that Paula Claudianos had moved temporarily to the
Office of Legal Services, and introduced Emily Edwards who will replace her in
the Civil Society and Business Branch for the time being.
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The Chair welcomed back Ruth Megirian who returned from leave at the end of
August.
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2. Introduction to the Meeting
The Chair noted that since the last CDC meeting in July, there have been a number
of significant changes that have impacted on Australia’s aid program, including the
ANCP.
Change in Government and Integration with DFAT
On 18 September the Australian Government announced its intention to integrate
AusAID and DFAT.
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The Administrative Arrangements Order (AAO) issued on 18 September outlined
that matters of International Development and Aid would be dealt with by the
Department of Foreign Affairs and Trade; previous orders relating to AusAID
were revoked.
The AAO means that AusAID will cease to be an Executive Agency and will no
longer have a direct reporting line to the Minister for Foreign Affairs. This is
expected to take effect on or around 31 October.
The business of delivering the aid program will continue from 1 November as part
of the Department of Foreign Affairs and Trade. We will be working towards a
new structure for the Department by 1 July 2014, with transitional arrangements
applying from 1 November.
The Minister for Foreign Affairs, Julie Bishop, has indicated that the integration will
strategically align foreign, trade and development objectives to serve Australia's
interests.
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She has also indicated that aid efforts will focus on the Asia, Pacific and Indian
Ocean regions. PNG will remain a priority as will Indonesia.
She is supported by the Parliamentary Secretary for Foreign Affairs, Brett Mason.
A taskforce has been established to work through the integration process on a wide
range of organisational, operational and corporate/staffing issues and is expected to
operate until 30 June 2014.
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The Taskforce reports to a joint DFAT-AusAID Steering Committee chaired by
Peter Varghese, Secretary of DFAT and Ewen McDonald, A/g Director General.
No decisions have been made yet as to the operating model of the integrated
department.
The Steering Committee has approved a set of principles that will guide the
integration process.
The Taskforce is an internal body made up of AusAID and DFAT representatives.
o 13 working groups have now been established, comprising AusAID and
DFAT staff to make recommendations to the Taskforce on implementation
of a range of corporate, operational, policy and program issues.
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Aid Budget
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The Government is currently considering its strategic, budget and funding
priorities, including for its foreign aid program which remains around $5 billion a
year.
Information on the funding priorities of Australia's aid program will be provided by
the Government in due course.
The Department will work closely with partners with a strong track record for
effective aid delivery.
The Coalition's Federal Election policy commitments released on 5 September
2013 stated that "the Coalition will re-prioritise foreign aid allocations towards
Non-Government Organisations that deliver on-the-ground support for those most
in need".
o This has been reflected in the DFAT-AusAID Integration Principles, the
third of which is that "the Department will work closely with NGOs with a
strong track record for effective aid delivery."
Impact on ANCP operations and planned reforms
With a new Government and Minister, AusAID is making no assumptions about what
the policy priorities are at this stage other than what has been said publicly, and is
therefore moving forward at a more cautious pace, particularly with any new reform
activity. We are, however, proceeding with certain administrative reforms to reduce
red tape – eg. aligning accreditation to the due diligence framework.
CDC members enquired about impact of funding uncertainty on the ANCP. Chair
acknowledged NGOs’ concerns and advised that she did not know what impact the
Government’s budget decisions would have on the ANCP.
ANCP Governance
Once further details of the Government’s policy and budget priorities are known, it
may be necessary to review the Terms of Reference and membership of this
committee, including secretariat functions.
ANCP accreditation
Work has begun on drafting revised accreditation criteria to align with the Due
Diligence Framework and to streamline the accreditation process.
It is proposed that the ANCP accreditation assessment could consist of two
components:
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Part A: assessment against the Due Diligence criteria with both a due
diligence risk rating as well as a recommendation against ANCP standards
(pass/fail).
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o Only section A of the assessment reports would be available for review
on the AusAID-wide Due Diligence report register.
Part B: assessment of ANCP specific criteria which will be a pass/fail
assessment.
Work has commenced to enable accreditation application and assessment to be
undertaken using SmartyGrants. This means ANCP On-line will be used to
streamline the application process for NGOs, improve data accessibility and create
efficiencies.
Following the Reviewers Workshop (14-15 October 2013), AusAID will do further
work on alignment documentation and preparation for transitioning to an on-line
application process. The sector will be provided updates accordingly.
Action item: CDC to be updated out of session on accreditation on-line
templates.
ANCP Meta-Evaluation
From an ANCP operations perspective, work has progressed on the meta-evaluation
- an independent review of nine project and program evaluations of NGO projects in
Cambodia from 2007-2012 on the topic of ‘promoting opportunities for all’ by NGOs
under the ANCP.
The report which is currently being finalised, provides eight recommendations to
NGOs and three specific to AusAID. Broadly, for NGOs, these include advice on
improving evaluation standards and practices, ensuring adequate inputs of
evaluation expertise, having more explicit consideration of efficiency and supporting
evaluation capacities.
A teleconference with ANCP NGOs to discuss findings of the report is scheduled for
later this week, which will provide an opportunity to agree on the focus of proposed
learning events later in the year to help progress recommendations of the report.
Report findings are also expected to be presented at Uni-Linkages later in
November.
CDC NGO members thanked AusAID for the update and noted that there will be a
period of uncertainty as changes in Government policy and the integration with
DFAT are implemented. They indicated their appreciation for AusAID’s efforts to
ensure that transition arrangements will be smooth for the NGO sector and ANCP.
3. Conflict Check
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The Chair asked to be notified of any conflicts of interest.
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Helen Cheney advised that she had participated in preparing the Agency Profile
for Save the Children whose Organisation Review (OR) report and
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recommendation for re-accreditation was to be discussed. The Chair agreed that
it was appropriate for her to leave the meeting when Save the Children OR was
discussed.
4. Endorsement of Previous Minutes
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The Chair asked members whether they had any issues with the minutes of the
138th CDC meeting.
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CDC NGO members congratulated AusAID on the shorter turnaround time for the
minutes. They also commented positively on the implementation of ANCP Online, including the help-line.
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The Chair confirmed that the Minutes were accepted.
5. Update on outstanding action items (from Actions Log)
Wording of ANCP objective (Ruth Megirian)
The Chair introduced Ruth Megirian to speak to this item. Ms Megirian presented
the following wording for ANCP objective and description, noting that it was
discussed at CDC138 and further input provided to from ACFID and CDC members
to AusAID out-of-session.
ANCP Objective
To support accredited Australian NGOs to implement their own programs and
strategic directions consistent with the Australian aid program’s objectives of poverty
alleviation and sustainable development.
Description of the ANCP
The ANCP is a unique flexible AusAID funding mechanism that supports accredited
Australian non-government organisations (NGOs) to implement effective
development programs that directly and tangibly reduce poverty in developing
countries and therefore achieve results for the overall aim of Australia’s aid program.
To be eligible, agencies are required to undergo a rigorous assessment of their
organisational structure, policies and systems. Accreditation aims to provide AusAID
and the Australian public with confidence that the Australian Government is funding
professional, well managed community-based organisations, capable of delivering
and reporting on development outcomes.
The ANCP funding is determined by accreditation status and recognition of
Australian community support to NGOs (known as recognised development
expenditure). In recognition of the community support for ANGOs and the unique
strengths that NGOs bring to development activities, the ANCP supports NGOs’ own
programs and projects.
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The above wording was agreed, noting that the content may change to be in line
with Government priorities and the name of the program may change as AusAID is
integrated into DFAT. No further action is required at this time.
Recognised Development Expenditure (Ruth Megirian)
The Chair introduced Ruth Megirian to talk to this item. Ms Megirian updated the
CDC on the engagement of a consultant, Geoff Simkiss, to undertake an
examination of RDE. The examination will include analysis of the existing model of
measuring Australians’ contributions to Australian NGOs that deliver overseas aid
programs. The objective is to develop an up-to-date model of measurement of
contributions and to simplify the rules used to calculate RDE. It is proposed that the
consultant will consult with ANCP NGOs during the course of the examination.
NGO representatives noted that minimum RDE levels for base and full accreditation
could be increased, and requested that this be considered. NGO representatives
also queried whether the examination would look at the 50% cap on the contribution
to RDE coming from volunteers, gifts and in-kind contributions, and issues relating to
microfinance. This will be passed to the consultant. It was also suggested that
training be provided to NGOs to foster increased understanding of RDE – particularly
if changes are introduced.
The Chair confirmed that it will carefully consider the phase-in of any new systems in
consideration of timing for NGOs’ submission of RDE worksheets.
Action item: AusAID agreed to consider CDC NGO reps’ request to see the
final report out of session and on a confidential basis prior to any decisions being
made and that at least 2 weeks be provided for consultation.
Global Programming (Ruth Megirian)
 The Chair introduced Ruth Megirian to present the proposed definition:
Global Programming - Definition
Australian organisations may be part of an international grouping of organisations
that share a common philosophy and name and may implement programs and
activities collectively. Such global programs may be implemented through a
shared management arrangement with or through its international partners,
affiliates, federation and alliances.
The accredited Australian organisation must be able to demonstrate an
understanding of, and influence over, any global programs to which it provides
funds and other resources. Where organisations are determined to be engaging
in global programming, they must be able to demonstrate ALL of the following:
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a. the capacity to manage, monitor, and influence decisions of the group and
must provide evidence of engagement in governance processes of global
partners; and
b. evidence of systems and processes that ensure their participation in group
decisions affecting global programs; and
c. that it has the right to withdraw funding where necessary; and
d. evidence of conducting due diligence on partners within the group to
ensure policy compliance, assessment of value for money within the group
and effectiveness.
NGO representatives noted that reviewers had requested indicators and verifiers
for ‘global programming’ and that these are contained in the above definition.
The above definition was agreed.
Action item: AusAID to update the Accreditation Guidance Manual before
December 2013.
Technical Assistance (Ruth Megirian)
The Chair introduced Ruth Megirian to discuss the conditions under which AusAID
would provide technical assistance to NGOs. The meeting agreed that the following
should apply:
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Technical Assistance will be provided at the discretion of AusAID where:
(a) A non-accredited Agency is seeking accreditation; or
(b) A base accredited agency with an RDE of equal to or less than
$150,000 and equal to or less than 5 full time equivalent staff and is
within 12 months of its due date for reaccreditation.
In order to receive technical assistance organisations must be able to:
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meet eligibility criteria for accreditation as outlined in the Accreditation
Manual; and
have made substantial progress on completing their Agency Profile.
CSO Due Diligence and Effectiveness Assessment Methodology (Katharina
Dollmann)
The Chair introduced Katharina Dollmann to provide an update to the CDC.
Ms Dollmann advised that:
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CSBB is in the process of finalising a companion document for Baseline Due
Diligence Guidance.
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The companion document will provide additional guidance that AusAID staff
may consider in order to assign a risk rating when conducting a Baseline Due
Diligence Assessment on a Civil Society Organisation.
The Effectiveness Assessment Methodology will be used as the basis for
updating the grants guidelines for the aid program and will be updated to
include new effectiveness criteria for NGOs, with the guidelines expected to
be completed by November 2013.
The new criteria will be piloted in late 2013 with selected country programs. It
is expected that the new criteria will be applied to all new grants to NGOs
from July 2014.
The principles of practice from the Effectiveness Assessment Methodology
have been incorporated into the new draft accreditation criteria.
Development Awareness Raising (Joanna Larvin)
The Chair introduced Joanna Larvin to speak to the Development Awareness
Raising (DAR) statistics provided in Paper C.
CDC members thanked AusAID for preparing these statistics noting that their
intention was to see them in 12 months. Ms Larvin noted that since NGOs enter
data directly into ANCP on-line it is now much easier to produce statistics quickly.
The meeting agreed that having the data now provided baseline data for comparison
with data at the same time next year.
NGO representatives noted the decline in DAR expenditure from 2012-13 to 201314, particularly among faith-based organisations, and linked it to the stringency of
requirements to not promote a particular religious adherence in DAR. Some
organisations, including those represented on the CDC, had reduced or eliminated
DAR expenditure in order to be sure of satisfying the guidelines. The Chair
responded that the Guidelines were intended to both help NGOs with their project
development and to enable AusAID to respond to queries from Parliament and the
public about the application of taxpayer funds for development awareness raising.
NGO representatives suggested that the issue be revisited in 12 months’ time when
additional data becomes available on the impact of the DAR Guidelines on DAR
programming. NGO representatives also suggested that ACFID could facilitate
discussion on the issue at a Member Information Forum in 2014.
Action item: DAR statistics update to be provided in 12 months’ time (October
2014)
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Template for Extension (Ruth Megirian)
The Chair introduced Ruth Megirian to provide further information on developing a
template for NGOs to use if they wish to request more time to submit their Agency
Profile. Ms Megirian noted that NGOs are advised 12 months before their reaccreditation is due, and that they will be required to submit an agency profile in the
following 12 months. She also noted that NGOs are requested to advise AusAID of
when they expect to provide their agency profile, and that this should be no more
than 6 months from the date on which the agency profile is due.
CDC members asked that the proposed paragraph or advice include that late
submission of Agency Profiles could risk an organisation being re-accredited and
could affect their receiving an ANCP grant in the following financial year.
Action item: AusAID to update the paragraph or prepare a template for inclusion
in the Accreditation Guidance Manual including the possible consequences for
late submission of the Agency Profile and update provided at CDC 140.
6. Update on Policy Refreshers (Joanna Larvin)
The Chair introduced Joanna Larvin to provide an update on the policy refreshers .
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AusAID has started discussions with ACFID on coordinating two initial policy
refreshers: child protection and fraud control.
ACFID has agreed to ask all NGOs to register for webinar sessions (to be
coordinated by ACFID), and to indicate any areas of concern or questions on
the two topics to inform the content of these sessions.
o A webinar session is tentatively scheduled for 13 December.
o CDC NGO members asked that questions be de-identified to enable
NGOs to ask questions ‘anonymously’.
o Ms Larvin assured CDC members that ACFID’s and AusAID’s intention
is to make the webinar available on ACFID’s website for NGOs’ future
reference.
Additional sessions on other topics may be planned depending on the
success of the first sessions. These may include topics such as Work Health
and Safety and Anti-terrorism.
CDC NGOs asked if AusAID would arrange webinars on some ANCP-specific
issues, such as welfare and sustainability.
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CDC NGO members also advised AusAID that ACFID’s ExCom were
currently reviewing their policy position on welfare.
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7. Other Business
Reviewers’ Workshop
Ruth Megirian provided a brief overview of the key points covered under each topic
in the Reviewers’ Workshop concerning accreditation.
Accreditation Reforms – key points
There was general agreement that the concept of streamlining is sound. Due
diligence perspectives (risk ratings) and ANCP perspectives (program-specific
standards) require further refinement as to how criteria would be assessed and
reported against. There was also discussion of how reviewers might work using
an on-line system.
ANCP NGOs’ contractual obligations
 Spot checks are valuable between accreditations because AusAID can
request information on specific programs or activities. In accreditation, NGOs
select the programs or activities for the purpose of accreditation.
 Noted that AusAID’s child protection policy sets minimum standards, and in
high risk environments and/or high risk activities, organisations are expected
to be able to demonstrate more comprehensive processes to ensure
protection for children.
CDC NGO members’ feedback to Reviewers
 CDC NGO members commended Reviewers on improved reporting,
particularly that reviewers are citing the evidence that support the statements
they make in each report.
 CDC NGO members asked that CDC members receive an invitation to
participate in the full Reviewers’ Workshop as has been done in previous
years. It was acknowledged that as it is not always possible to participate in a
full day’s workshop, a dedicated session for CDC members to provide
feedback is still helpful.
 CDC NGO members requested the opportunity to observe accreditation
reviews. The reviewers suggested that NGO representatives could contact
NGOs directly to request to attend. It was noted that there were potential
sensitivities associated with having CDC NGO representatives attend
organisation reviews which are already challenging for NGOs.
Anti-terrorism Guidance
ACFID requested an update on progress. The Chair noted that no further progress
has been made on updating the Guidelines since AusAID received feedback from
the sector. Part of the problem is that the anti-terrorism guidance does not have a
dedicated policy home in AusAID. The Chair assured the CDC that AusAID will
provide advance notice of the updated Guidelines before they are disseminated
more broadly to the sector.
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Action item: Update to be provided at CDC 140.
Value for Money Working Group and progress on VfM definition
The Chair provided an update:
The definition will be principles based, similar to what we’ve consulted with the NGO
sector on through the Effectiveness Assessment Methodology consultation draft. It
is likely to include principles relating to, for example, cost consciousness, evidencebased decision making, flexibility and innovation. The principles will cover all
partners (similar to the due diligence framework) and not just CSOs.
NGO representatives asked that, until a clear definition can be provided, AusAID
should not include a requirement for “value for money” in its application and reporting
requirements. The Chair explained that the revised Aid Manual to be finalised
shortly will help to provide consistency of approach across the Agency, including
definitions.
Fraud (incidents reported by ANCP agencies and their total dollar amount)
AusAID advised that there are currently 18 ongoing fraud cases. Of these, 5 were
identified and reported this FY. The oldest case still open is from June 2012. Five
additional cases have been closed since January.
The total value of fraud cases is between $55,000 and $60,000. It is not possible to
be more definitive, as some NGOs have not reported the full value (investigations
are still ongoing) and some cases are reported in local currencies which are affected
by currency fluctuations.
Requirements for work health and safety under ANCP
AusAID advised that there is an expectation that Australian NGOs understand their
obligations under the 2011 legislation. There is no explicit AusAID or ANCP
guidance on this, however, it could become a topic for a webinar.
CDC members advised that ACFID could do some background work for its members
and coordinate with AusAID.
ACFID feedback to AusAID on Child Protection Survey
ACFID noted that there was some confusion among NGOs about the extent of
AusAID’s request for information regarding child protection systems and processes.
ACFID had a meeting earlier this week with AusAID and have sufficient information
to go back to their members with further guidance. ACFID has undertaken to send
an e-mail to its working group, and AusAID will send the same information to ANCP
NGOs.
It was noted that ANCP NGOs have been granted an extension to 30 November to
submit their survey responses. CDC NGO members requested that AusAID
acknowledge the burden to NGOs in its e-mail in making on-going requests for
information. The Chair noted that the original e-mail had included this
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acknowledgement and will ensure that the issue is again acknowledged in the followup e-mail.
8. Next Meeting
The CDC agreed that the next meeting will be 5 February 2014. The Chair also
agreed that, organisational changes notwithstanding, AusAID will endeavour to send
out a schedule of proposed CDC meeting dates for 2014 as soon as possible.
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