Canadian International Development Agency

Phased Follow-up of the Auditor General's 1993 Report - Phase I

Introduction
Our Comments on Actions Reported by CIDA

Canadian International Development Agency's Self-Assessment Report ' Phase I
- CIDA's Overall Self-Assessment of Progress
- CIDA's Report on Its Actions Taken in Response to Concerns Raised in the Auditor General's 1993 Report

Assistant Auditor General: Richard B. Fadden
Responsible Auditor: Vinod Sahgal

Introduction

13.23 Since 1968, CIDA has been the federal government's main arm for administering Canada's Official Development Assistance. We pointed out in 1993 that CIDA's annual expenditures on bilateral economic and social development assistance had exceeded one billion dollars ' over half of its share of Official Development Assistance (ODA) to developing countries. (In 1995-96 this is equivalent to 880 million dollars and remains over half its share of total ODA to developing countries ' see Exhibit 13.1 ). The rest of the Official Development Assistance provided by CIDA was delivered mainly through funding to multilateral institutions such as United Nations programs, to international financial institutions such as the regional development banks, and to a multitude of non-governmental organizations such as CARE.

1993 Report Raised Concerns

13.24 In 1993, we audited CIDA's management of bilateral economic and social development programs with a view to:

providing objective information, advice and assurance to help Parliament scrutinize CIDA's use of its resources and management for results;
promoting accountability and good practices by CIDA in managing for results; and
highlighting areas for improving the Agency's management of its country programs and projects.

13.25 Chapter 12 of our 1993 Report dealt with CIDA's stewardship of the funds entrusted by Parliament, in the context of the principles and priorities of Canada's policy on Official Development Assistance.

13.26 Our audit coincided with a Strategic Management Review conducted by the Agency at the request of its Minister. Both examinations identified some important lessons from CIDA's 25 years of experience, in particular the need for the Agency to improve its base of knowledge on development needs and approaches; increase the relevance of its aid program through better dialogue with its stakeholders; and reduce its delivery costs.

13.27 The principal concerns raised in the 1993 Report were 1) the need to improve CIDA's accountability and 2) strengthen its management effectiveness. The Main Points of our 1993 audit and the conclusions we reached were outlined in the 1993 Report, paragraphs 12.1 to 12.6:

Official Development Assistance is a significant aspect of Canada's foreign policy. For 25 years CIDA has been the main conduit for delivering development assistance. Annual expenditures for bilateral economic and social development assistance exceed one billion dollars.
We conducted this audit taking into account the increasing international awareness that continued investment in development projects that are not likely to be sustained beyond donors' financial assistance represents a questionable use of scarce resources.
In its ability to meet development needs of the nineties, the Agency has been losing ground. Current performance has not maximized the use of resources and has not led sufficiently to self-reliant development. There is considerable scope to improve CIDA's performance in promoting enduring benefits from its investments.
CIDA's bilateral programs need to concentrate more on those countries and activities where there is the greatest potential.
Lessons learned from 25 years' experience show a need to resolve conflicts among multiple objectives and to establish a more results-oriented, focussed, businesslike and accountable style of operation. They also call for dedication to the basic objectives, such as fighting poverty and helping people help themselves, that Canada has affirmed repeatedly over many years.
None of these changes will be easy to make, since they will require a change in mindset, skills and culture, and strong ministerial support. Their successful implementation will depend on the will to reform, not only among management and staff of the Agency but also among those who act as its development partners in Canada and in the developing countries where CIDA operates.

13.28 CIDA agreed with our findings and with the thrust of our recommendations aimed at improving its accountability and strengthening its management effectiveness. The Agency committed itself to taking action to address our concerns.

13.29 CIDA has embarked on an ambitious undertaking aimed at its renewal. The plan for this undertaking incorporates the actions necessary to address the concerns raised in our 1993 Report. The Agency provided this plan, "CIDA Renewal Plan 1994-1995", to the House of Commons Standing Committee on Public Accounts in the spring of 1994, following the Committee's hearings on the 1993 Report chapter on CIDA.

13.30 During 1994, officials of the Agency also testified at the Standing Committee on Foreign Affairs and International Trade. Both committees expressed interest in CIDA's renewal. The Special Joint Committee Reviewing Canadian Foreign Policy recommended that the House of Commons Standing Committee on Foreign Affairs and International Trade or the Senate Foreign Affairs Committee hold regular reviews of CIDA's performance. Accordingly, further hearings can be expected to monitor the implementation of renewal at the Agency. Our phased follow-up work provides a mechanism for a continuing dialogue among Parliament, CIDA and this Office on an important aspect of Canadian foreign policy.

13.31 The Agency's budget has since been under continuing pressure. Significant cuts were announced in the 1995 Budget documents. These cuts impact on the resources available to manage the Agency. It is increasingly apparent that CIDA will require continued strong leadership and a more action-oriented style of management toward the field to implement fully all the significant changes proposed in its initial plan for renewal.

13.32 Having recognized that CIDA's renewal will take several years, we reached an understanding with the Agency on a phased follow-up approach to the 1993 chapter, including the time frame for the work.

13.33 Because of the complexity of the task and the length of time and effort needed for CIDA to implement fully the significant reforms it has proposed, we believe that the Agency should be given the first opportunity to report on its progress. We see our role at this initial stage mainly as one of encouraging management to continue on its renewal course, move ahead quickly and take the necessary risks associated with implementing significant change. We will monitor the Agency's progress and assess the completeness and fairness of its reporting thereon to Parliament.

CIDA's Actions to Address These Concerns

13.34 This chapter contains CIDA's self-assessment of actions it has taken since 1993. It includes CIDA's report on its measures for implementing reforms as part of its renewal effort, and our comments on actions reported by CIDA.

Methodology for Conducting Phase I of the Phased Follow-up

13.35 Our main objectives for the three phased follow-up audit are to assist management and parliamentarians with an appraisal of the fairness and completeness of CIDA's self-assessment and to promote transparency in its ongoing efforts toward renewal. In Phase I (see Exhibit 13.2 ) we asked the Agency to provide us with a report on its self-assessment of the actions taken since 1993 together with appropriate documentation to support its representations. We reviewed CIDA's report and inspected the supporting documents provided to us to determine whether the representations address the main concerns raised in our 1993 Report. We then formulated comments on CIDA's self-assessment. A primary purpose of providing these comments to Parliament is to assist the concerned parliamentary committees to monitor CIDA's progress, assess directions (trade offs) and provide support. We did not seek corroborative evidence from operating management at headquarters or in the field at this stage. However, we will expand our audit work to include operating personnel in Phase II and Phase III of the phased follow-up.

13.36 Our opinion on the extent to which the Agency's actions have satisfactorily resolved the concerns we raised in 1993 will be included in our Report at the end of Phase III. (The three-phased approach to the follow-up is described in the foreword to this chapter.)

13.37 There are three major components to the remainder of this chapter:

our comments, in summary, on the actions CIDA has reported taking since 1993;
CIDA's overall self-assessment of its progress; and
each of the 12 major concerns raised in the Auditor General's 1993 Report, followed by CIDA's report on action it has taken to address them.

Our Comments on Actions Reported by CIDA

13.38 Our review of CIDA's self-assessment has enabled us to comment as follows: our principal concerns are being addressed at CIDA's headquarters.

The Agency has developed a results-based management concept to strengthen its effectiveness. This concept is central to the renewal process under way and is being scheduled for implementation in the field. There is a call for a practical approach to implementation and for timely actions by CIDA's employees and development partners. In a time of substantial budget cutbacks, it is more important than ever that CIDA be in a position to demonstrate to Parliament which of its channels and program instruments are yielding the best results in achieving those objectives that have the highest priority.
The first steps toward renewal have been taken. The steps the Agency has taken to implement the new concept appear to be in the right direction. The clarity with which CIDA has acknowledged its accountability to Parliament for development results and the emphasis it is placing on coherence in pursuing the government's Official Development Assistance priorities are noteworthy. So is the renewed commitment to search for simpler and more cost-effective solutions to program delivery. It is important that the Agency continue to move quickly with its action-oriented program for renewal; the need for conducting exhaustive studies should be questioned periodically. This will minimize the risk of reinforcing the perception that change in government takes forever.
The Agency's management renewal effort has so far been largely centred at headquarters; it would be timely to extend the effort to the field level. The vast majority of CIDA's employees are located in Canada, while the programs and projects it funds are overseas. The primary focus has been on organizing and planning for renewal at headquarters. The emphasis has been mainly on developing a consensus among headquarters management on changes to the Agency's organizational structure, policies, management practices, skills and training requirements. CIDA's Executive viewed these as prerequisites to renewal, because of the cultural change involved in moving from a process-oriented to a results-oriented style of management. An Agency-wide results-based management policy is being prepared. Many of the tools required to implement the policy are in varying stages of development. CIDA's Executive has discussed ways to implement results-based management and the need to develop a reporting system that best supports this initiative. In our view, CIDA needs a comprehensive tracking and reporting system to assess the quality and status of its projects. Progress in this vital area will be monitored in Phase II of the phased follow-up.
The next steps are even more crucial. There is a need, first, to implement the new policies and practices effectively, particularly in the field; and second, to accelerate the development of indicators that are simple and usable for measuring and reporting on the Agency's results as well as on the success of its programs and, particularly, its projects. These next steps are essential to ensure the credibility of CIDA's renewal.

The impact that the changes under way will have on CIDA's ability to better focus its efforts "on the ground", particularly in those core countries where clearly demonstrated development results can be expected, should provide a measure of the Agency's progress.

Factors that impact on CIDA's ability to make rapid progress. The speed of progress and the extent to which CIDA can strengthen the effectiveness of its programs and projects, as well as its ability to develop systems for reporting to Parliament on their success within the established time frame for renewal, will depend on continuous commitment by leadership at both the political and executive levels. Several other contributing factors include:
"buy-in" to the new concept of management for results among CIDA's partners in development, particularly its executing agents, given their concern about being held solely accountable to the Agency for development results. Results of development projects are often influenced by factors outside the control of CIDA and executing agents. The need remains for developing a contracting approach that defines the respective accountabilities and risks of both the executing agents and CIDA. We propose to examine the manner in which the Agency addresses this need.
ministerial and senior management support for measuring and reporting on the quality of development and other results associated with the Agency's programs and projects. This is particularly important given the risk of adverse publicity that a more open and objective system for performance review and reporting might on occasion entail.

The government has stated in its policy statement Canada in the World "that Canadians want to be sure that their aid dollars are being used effectively, that their help is making a difference in the lives of people benefiting from Canadian assistance by increasing their self-reliance."
the extent to which the Agency is able to deal satisfactorily with the reported perception of conflict between the objective of poverty reduction and the pursuit of the government's commercial and other political objectives, which, in the minds of some parliamentarians and some of the Agency's own staff (unlike corporate CIDA) may not always be compatible. Insightful analysis of Canada's strengths and how they correspond with developing countries' needs, as well as courageous ' i.e. clear and consistent ' decisions, will continue to be required to achieve the policy objectives set by the government.
other operating constraints on the Agency's ability to follow through on its implementation plan, given that the above factors are compounded by the impact on morale of resource and staffing cuts, no major change in policies on employee recruitment, remuneration and rotation, and the risk-averse environment in the public service.

There is an overall concern in the development community in Canada about Canada's ongoing commitment to implementing its stated policy on Official Development Assistance. We were told that this concern arises from a perception that funding ODA has been given lower priority, as reflected in the decline in the ratio of ODA to GNP and the successive budget cuts announced by the government.

In these circumstances, significantly improving the effectiveness of development co-operation through CIDA's renewal will be a challenge, despite the significant effort that CIDA's employees are willing to make.

13.39 It must be recognized that the actions of departments and agencies are greatly affected by political direction and constraints imposed at the centre on administrative policies. All of these factors have an impact on flexibility, speed of progress and motivation for change. They must be given appropriate consideration when holding management accountable for the ultimate results of its actions.

Audit Team

Manfred Kuhnapfel
Rajesh Dayal
Ram Babu Nepal

For further information, please contact Vinod Sahgal, the responsible auditor.

Canadian International Development Agency's Self-Assessment Report ' Phase I

Agence canadienne de Canadian International
d�veloppement international Development Agency

Pr�sidente President

Hull (Qu�bec) Hull, Quebec
Canada Canada
K1A 0G4 K1A 0G4

July 21, 1995

Mr. Denis Desautels
Auditor General of Canada
240 Sparks Street
Ottawa, Ontario
K1A 0G6

Dear Mr. Desautels:

I am pleased to transmit to you, under cover of this letter, the self-assessment report prepared by the Canadian International Development Agency (CIDA). This report is CIDA's contribution to the Follow-through Chapter in your October 1995 Report to Parliament.

CIDA has made substantial progress through the corporate renewal activities it has implemented over the past two years. The results are due to the hard work and commitment of Agency employees and manages, and to the support of our Minister. This self-assessment of the progress CIDA has achieved in addressing the main concerns raised in your 1993 Report to Parliament. I remain confident that the continuation of renewal over the next two years, will lead to the satisfactory resolution of these main concerns.

I would like to take this opportunity to express my appreciation to you and the members of your team for your encouragement and support. We look forward to continued collaboration and co-operation throughout the next phases of our work together.

Your sincerely,

Huguette Labelle

CIDA's Overall Self-Assessment of Progress

13.40 In February 1994, CIDA began a major renewal initiative aimed at transforming the Agency into a more results-oriented, focussed, efficient and accountable organization. The initiative is being implemented over three years, from 1994-95 through 1996-97, and will, once completed, bring about major improvements in management and accountability for results, streamlined business practices, transparency and reporting to Parliament, and human resources management.

13.41 The CIDA Renewal Plan responds both to concerns raised by the Auditor General and to CIDA's own strategic management review. Appearing with CIDA before the Public Accounts Committee in May 1994, the Auditor General described the renewal initiative as a "fairly ambitious plan...a good plan". He also stated that he was "very pleased by the commitment of the President and Executive Committee to this plan".

13.42 CIDA has in place a monitoring process by means of which it is periodically assessing progress on the renewal initiative. Corrections and adjustments are being made as required. Progress to date has been significant. Key improvements are described below:

The government's new foreign policy directions, in particular those relating to development, are being linked to CIDA programming through a new corporate planning process that calls for policy objectives and priorities to be translated into plans, including clearly identified objectives, expected results and performance indicators. CIDA will be in a position to start reporting to Parliament in the Part III of the 1996-97 Estimates on its achievements in implementing the new foreign policy.
CIDA is working with the Department of Foreign Affairs and International Trade to not only enhance policy co-ordination but also pursue opportunities for ongoing collaboration. The primary goals are to reduce costs and maintain effective operations, in Canada and abroad.
To assess and report more completely on aid effectiveness, CIDA has developed and is starting to implement a new performance review policy. The new performance review structure will assist in identifying and communicating lessons learned, thereby aiding in the establishment of a learning culture in CIDA. In addition, a model for assessing and demonstrating the results of development programs is being developed in consultation with the Auditor General and with other international development agencies. The model is expected to be completed by mid-1996. Both of these improvements will help strengthen CIDA's reports to Parliament on results being achieved.
Important efforts have been made to develop elements of managing for results. There is now much greater awareness in CIDA of the importance of managing for results as a means of achieving and demonstrating aid results. A guide for employees describes the main elements of managing for results; improved project planning and approval processes are more results-oriented; and results-based contracting is being attempted in specific cases. By the end of 1995, CIDA will have developed a clear policy on results-based management to complement its model for development results. This policy will help employees achieve a common understanding of results in the development context and will define responsibilities and accountabilities. In addition, an accountability framework, which also complements the policy on results-based management, is nearing completion. This framework sets out clear accountabilities for all staff of the Agency, and clarifies CIDA's role vis-�-vis major stakeholders.
With a view to becoming more cost-effective, CIDA has streamlined its organizational structure, the processes for planning and approving geographic projects, the processes associated with its contracting regime, and various personnel and administrative processes. It also has strengthened its management function by establishing a broadly mandated Corporate Management Branch and improved its human resources policies, in order to develop, over time, a more skilled, knowledgeable and motivated workforce.
The Agency has adopted an information management strategy to improve its management and reporting capacity by putting in place an information and technology infrastructure that supports CIDA's business objectives. The first step, implementing hardware, software and training, was completed successfully and the next step, a medium-term information management and technology plan, is under way.

13.43 The initial focus of CIDA's renewal initiative was on management practices. As described above, CIDA has made good progress in improving its management infrastructure, including its management practices and policies. These improvements, along with important changes to program and project planning, now are starting to manifest themselves in program delivery and field operations.

13.44 Over the next two years, CIDA will concentrate on ensuring that its renewal reforms are translated into program delivery in the field. In implementing the government's new foreign policy, it also will consolidate the gains made in the area of managing for results, including implementing the development results model and better managing risk and performance. This should further improve the cost-effectiveness of its programs and its ability to demonstrate achievements. CIDA recognizes its accountability to Parliament and will continue to improve its reports to Parliament in order to achieve greater transparency.

13.45 The following sections of this chapter provide more details on CIDA's progress on renewal and how it has addressed the concerns raised in the Auditor General's 1993 Report.

CIDA's Report on Its Actions Taken in Response to Concerns Raised in the Auditor General's 1993 Report

Resolving Conflicts among Objectives

The new foreign policy clarifies CIDA's objectives

13.46 The objectives of Canada's Official Development Assistance (ODA) program were recently clarified when the government completed its review of international assistance in the context of its broader review of foreign policy. The approach to ODA set out in Canada in the World is noteworthy in a number of respects. It treats ODA as part of an integrated foreign policy. It notes that development assistance makes a unique long-term contribution to Canada's three broad foreign policy objectives of prosperity, security and the furthering of Canadian values and culture. It establishes four key commitments for Canada's ODA program: a clear mandate and set of priorities; strengthened development partnerships; improved effectiveness; and better reporting of results to Canadians. It identifies the actions that must be taken to meet these commitments. It also commits CIDA, Foreign Affairs, and other departments whose work has a bearing on Canada's international relations to co-operate more closely on ensuring greater coherence and consistency in their policies.

13.47 CIDA's mandate is now stated clearly: to support sustainable development in developing countries, in order to reduce poverty and contribute to a more secure, equitable and prosperous world. While the focus of Canadian Official Development Assistance is on meeting the development needs and priorities of developing countries, it is also in the interests of Canadians to contribute to global security, economic growth and prosperity. Canada's security and prosperity are inextricably linked to global conditions and trends. ODA and long-term Canadian interests ' including political and trade interests ' are not in conflict; they are complementary.

13.48 To achieve its stated purpose, Canadian ODA will concentrate available resources on six program priorities: basic human needs; women in development; infrastructure services; human rights, democracy, and good governance; private sector development; and the environment.

13.49 With regard to CIDA's priority of private sector development, as stated in the Government Response to the Recommendations of the Special Joint Parliamentary Committee Reviewing Canadian Foreign Policy, the government is committed to ensuring the development focus of CIDA activities involving the private sector. Measures to enhance trade in developing countries can exert a strong positive impact on development, and the Canadian private sector is an important development partner for CIDA. The government will work to foster long-term relationships between the private sectors in Canada and developing countries that benefit development, through trade, investment and technology transfer. In this context, CIDA is preparing a detailed policy on private sector development.

Actions to implement the policy

13.50 Canada in the World has clarified CIDA's mandate and priorities. To ensure that the new policy is implemented and that programs are fully aligned with the purpose and priorities for Official Development Assistance, CIDA has identified a number of actions required. A plan has been developed detailing lead responsibility and a time frame to meet each of the commitments in the new policy. Examples of actions that will be carried out include the following:

To help CIDA reflect the new statement of purpose (to support sustainable development in developing countries in order to reduce poverty and contribute to a more secure, equitable and prosperous world), its programming will be guided by the existing sustainable development framework and by the recently approved (June 1995) policy on poverty reduction. This latter policy, which builds on CIDA's years of experience in this area and on lessons learned by other donors, sets out programming strategies for poverty reduction.
To provide greater clarity to the six programming priorities, CIDA has developed operational definitions of each priority and a programming direction for each. By April 1996, CIDA also will have developed policy statements for each priority. These two actions will serve to foster coherence by providing CIDA's staff and partners with a clear understanding of the programming priorities.
CIDA will develop a tracking system that will enable it to report on funds disbursed on each of the six priorities. It will also monitor progress on all commitments made in the policy and will start reporting to Parliament on the implementation of the policy in the 1996-97 Main Estimates.
CIDA will continue to implement the corporate planning system developed in 1993. Corporate planning will make an important contribution to program coherence and alignment with the new policy. The process will ensure that policy objectives and priorities are translated into branch plans, into regional and country policy frameworks and, finally, into projects and other funded activities. It will also ensure that expected results and performance indicators are defined and that progress made is reviewed.

13.51 Other initiatives under way to strengthen policy coherence include:

a co-ordinating committee of deputy ministers established recently, chaired by the Deputy Minister of Foreign Affairs and including the President of CIDA and the Deputy Minister for International Trade. It meets regularly to oversee systematic policy co-ordination between the two organizations; and
a new process for regional and/or country reviews (see paragraphs 13.56 to 13.61). With this process, as country or regional policies are reviewed, CIDA and Foreign Affairs will work toward developing strategies that take into account and incorporate all relevant foreign policy instruments.

13.52 The application of a new performance review policy will support the effective implementation of the new aid policy (see paragraphs 13.74 to 13.80). Over the next three years, CIDA plans to undertake Agency-wide examinations of each of the six program priorities set out in the policy. This will allow it to go beyond reporting on disbursements to reporting, where feasible, on the results achieved in priority areas through all delivery channels.

Concentration of Efforts

The new foreign policy - a focus on priorities and countries

13.53 With regard to geographic concentration, as stated in the Government Response to the Recommendations of the Special Joint Parliamentary Committee Reviewing Canadian Foreign Policy , Canada does have important interests in all areas of the world. Efforts will be focussed on a limited number of countries, while maintaining programs in other countries through low-cost, administratively simple delivery mechanisms. Canada in the World signals that available resources will be concentrated on the six program priorities: basic human needs; women in development; infrastructure services; human rights, democracy, and good governance; private sector development; and the environment. In addition, 25 percent of Official Development Assistance will be committed to basic human needs. This is an important step in confirming the strategic focus of the Agency's programs.

Aligning CIDA's programs with the priorities and ensuring effective implementation of the policy

13.54 As described already, CIDA has developed mechanisms to align its programs with the six priorities and to implement the new policy. It is defining and describing clearly each of the priorities, developing a tracking system, and continuing the implementation of the corporate planning system and the new regional or country development policy framework (R/CDPF) process. It is evaluating the results of each program priority and reporting on the new policy to Parliament. Paragraphs 13.50 to 13.52 provide more information on CIDA's actions in this regard.

13.55 CIDA's approach for developing country or regional strategies that are focussed on the Agency's priorities is described in paragraphs 13.56 to 13.61.

A Better Focus on Results

Important changes in CIDA's processes

13.56 CIDA agrees that different countries and regions call for different development strategies. With this in mind, in June 1994 it adopted a new country/regional analysis process that brought about important changes:

The regional or country development policy framework (R/CDPF) was reaffirmed as a corporate document, conceived with the full involvement of all program branches. It is applied differently to CIDA's different channels. While it enables the Agency to lay the groundwork for geographic branch funding decisions, it guides all Agency programming and identifies opportunities for complementarity with other programs.
The consultation process has been greatly strengthened. In-depth consultations are now held with Canadian stakeholders, other donor agencies and the country or region involved.
For each policy framework CIDA will state as clearly as possible the specific objectives and expected results, country by country or region by region, depending on the nature of the program. As well, clear and realistic expected results and performance indicators will be identified for project interventions supporting each regional or country development policy framework.
CIDA is committed to developing the tools to evaluate the effectiveness of the ensemble of project interventions in the context of country and regional programs. While recognizing that there are multiple factors and intervenors that influence development at a country, region or program level, CIDA also will test the feasibility and reliability of demonstrating results at these levels of aggregation.

13.57 This improved planning process fosters the closest coherence possible between corporate priorities and country/regional objectives and expected results of projects. It is based on analysis of the needs and development problems of a country or region, its prospects for sustainable development, the Canadian comparative advantage and capabilities, the role of other donors, and the various risks inherent to CIDA programming in the country or region. For all major countries or regions, CIDA will develop a regional or country development policy framework over the next five years. Since the introduction of the process, in June 1994, CIDA has completed the policy framework for three countries: China, Vietnam and the Philippines. Another country and four regions will be reviewed within the next year. It also should be noted that CIDA is developing, for the end of 1995, a set of detailed guidelines for preparing regional and country development policy frameworks as part of a handbook to help analysts undertake the required analyses.

13.58 As illustrated by the recently completed country development policy frameworks, CIDA has conducted analyses of each country, including the rationale for Official Development Assistance to these countries, lessons learned, risks, and the mutual interests of the recipient countries and Canada. Policy options have been developed and assessed. CIDA conducted in-depth consultations in the recipient countries, with Canadian stakeholders and with other donors throughout the process. Through annual consultations or, in the case of China, a visit by the Minister of Foreign Affairs, CIDA ensured that the recipient countries were in agreement with the final analysis. The policy frameworks also were widely distributed to partners and stakeholders (i.e. Canadian private sector firms, educational institutions and associations, non-governmental organizations, and professional associations) to ensure their understanding of the direction of Canada's program in these countries and to generate thinking about how they could contribute to the expected results.

13.59 In regard to Canada's influence with recipient governments, CIDA believes that there are a number of factors that work in its favour. The fact that Canada acts with the best interests of the recipient countries in mind, and is not seen to be driven by narrow self-interest, is important. So is the fact that CIDA is a well-respected organization. The Auditor General has stated that "CIDA in the field has a reputation for integrity and co-operation." Canada can also set an example for democracy and good governance, and has expertise to offer in many areas of development assistance.

Bridging the gap between new programs and projects

13.60 As CIDA has noted, the policy framework for each major country or region will now describe program goals and objectives, priority areas, and expected results. CIDA also will identify realistic results and performance indicators for project interventions. To provide managers with the tools they need, CIDA is working, in collaboration with the Auditor General, on developing a model/methodology for evaluating and demonstrating results (see paragraphs 13.66 to 13.68). Several instruments to help managers assess effectiveness will emerge from the methodology:

the R/CDPF investment appraisal guide will help managers determine the choice of programming priority for the region/country and the area of thematic focus within the selected programming priorities; and
the project investment appraisal guide will help managers determine the choice of projects within the selected areas of thematic focus/programming priorities, and will help them assess project performance.

13.61 The coherence between new projects and programs also is being strengthened through recent changes to the planning and approval process for bilateral projects (see paragraphs 13.88 and 13.89). As a first step to planning a new project, CIDA must now demonstrate the project's link to corporate policies and priorities and to the country policy framework. The expected benefits from the project also will be defined. Recent projects being planned in China and Vietnam demonstrate that the coherence between new projects and the country analysis is clearly established. Recognizing the close links among CIDA's branch plans, the R/CDPFs and project interventions, and to ensure that the planning process is not burdensome, CIDA has decided not to pursue an operating plan at this time.

Promoting Enduring Benefits

CIDA's efforts to enhance project sustainability

13.62 As stated in Canada in the World , an effective development assistance program begins with the recognition that development is a complex process and that many conditions must be met before it takes permanent root. The growing diversity of the development world adds to this complexity and it is clear that development assistance is just one part of a larger effort ' one that involves the resources of developing countries themselves and other factors, such as international trade and investment.

13.63 Recognizing these conditions, project sustainability can be enhanced by a number of factors. CIDA can analyze whether the host country has an appropriate policy and institutional environment, plan over a long-term horizon, and ensure the participation and ownership of the host country. It can assess the availability of sustaining resources to operate and maintain the project over its life cycle, assess the technical and managerial capability or readiness of the host country to sustain the project, and build human, institutional and technological capacity. CIDA can manage risks and manage for results. It can also evaluate results and apply lessons learned from experience. CIDA is devoting extensive effort to developing policies, practices, tools and a management philosophy that reflect a commitment to managing for results (see paragraph 13.42) and that address key factors for project sustainability. Some of these efforts are described in the following paragraphs.

New approach, processes and methods

13.64 Key elements of CIDA's new approach to country or regional analysis (see paragraphs 13.56 to 13.61) that support sustainability include an assessment of the needs and problems of the developing country or region; an examination of major political or economic changes in the country or region; an analysis of the prospects for development, of the role of other donors, and of the Canadian comparative advantages and capabilities; and in-depth consultations with recipient countries, Canadian stakeholders and other donors.

13.65 CIDA also has adopted new processes for planning and approving projects (see paragraphs 13.88 and 13.89). Key elements of the new processes that support sustainability include the identification of analyses that are required during project planning, and new criteria for project appraisal. Analyses to be conducted during project planning, depending on the nature and type of project include a technical feasibility analysis; an institutional and management assessment; a gender role analysis; a financial assessment; economic assessments; an environmental impact analysis; and a political risk analysis. Project appraisal criteria include an assessment of whether the project: clearly defines objectives, expected results, the potential for sustainability, and possible adverse effects; reflects lessons learned; identifies constraints and develops a risk management strategy to prepare for possible negative events; and proposes an approach appropriate to the nature and risk of the project.

13.66 CIDA currently is developing a performance review methodology to demonstrate the results of its bilateral programs and projects. This methodology will lead to establishing indicators of self-sustainability. It will describe key questions, indicators, and the performance analysis methodology that should be applied at key steps in program and project management. The data generated by applying this methodology will serve as an early warning system for projects and programs that are not leading to the expected results, and the information will be used to correct the course of activity as needed. Managers also will use the methodology to answer questions such as why a particular program or project should be chosen over others; how results should be defined; how operational effectiveness should be measured; and how risk should be assessed and managed. CIDA will develop several analytical instruments, including guides for each major step in the new process for planning and approving programs and projects (see paragraph 13.60). These guides have been set out in a comprehensive and integrated model of performance review instruments that, for the first time, showed clearly the relationship between self-assessment of performance by CIDA's branches and corporate-level performance review.

13.67 The methodology is being developed in consultation with managers throughout the Agency, with the Office of the Auditor General, and with other donors. A prototype of the model was produced in June 1995 and will be tested through pilot studies in 1996. It is expected that the model will be discussed in the Auditor General's November 1996 Report. Following are some of the lessons learned to date from our consultations with other donor agencies:

All donor agencies we visited, including the World Bank, Inter-American Development Bank, USAID, UNICEF, and UNDP, are struggling with the challenge of collecting, in a cost-effective manner, relevant and appropriate data that they can analyze for the purpose of reporting on their performance. It should be noted that the Office of the Auditor General, at a recent appearance before the Standing Committee on Foreign Affairs and International Trade, acknowledged the difficulty of assessing aid results.
The indicators must be appropriate to the program's context. For example, USAID pointed out that the rate of acceptance for family planning in Africa is historically lower than in Asia. The interpretation of indicators must take into account the program context.
Although all donors are interested in and recognize its importance, none has yet been able to develop a methodology to evaluate its impact in such "non-project" areas as policy dialogue.
The issue of how to evaluate results in the new programming context of flexible, iterative projects is a challenge to all donors. Also a challenge is the requirement to evaluate results in new areas of Official Development Assistance aimed less at building structures and more at transforming society (e.g. democratization).
A significant period of time is needed to develop appropriate and useful indicators. It was suggested that four to five years are required to devise a solid, field-tested set of indicators for a specific sector.
A significant period of time (five to seven years) also is required to develop fully and integrate a performance review system.
The integration of a performance review system into an organization can take place only where its staff has participated fully in developing and experimenting with the new system.

13.68 As part of the consultation process, CIDA, the Office of the Auditor General and the International Development Research Centre will co-operate to organize a seminar on the measurement of development results. Representatives from national audit offices and evaluation offices of other donor agencies will be invited. CIDA will present its methodology for demonstrating the results of bilateral programs and projects, and best practices in this field will be discussed. It is expected that this seminar will be held in 1996.

13.69 The Auditor General's concern about clarity in contractual arrangements is dealt with in paragraphs 13.81 to 13.84.

Improving Risk Management

CIDA is promoting assessment and management of risk

13.70 CIDA is developing approaches to promote risk assessment and management at all levels in the Agency:

With the adoption of new project management practices (see paragraphs 13.88 and 13.89), CIDA is introducing to its planning of new projects a number of analyses, including assessments of risk and of the potential for ongoing project viability. It also is developing the use of a risk management strategy tailored to the specific project. Project managers also will be expected to monitor, on an ongoing basis, whether anticipated risks are actually occurring and whether conditions that are critical to the success of projects are still present, and to use this information to adjust project activities to ensure the achievement of expected results.
With the adoption of a new process of regional or country development policy frameworks (R/CDPF) (see paragraphs 13.56 to 13.58), CIDA will, in consultation with the recipient country or region, assess the development context of the country or region, including its capacity to absorb aid. The recently completed CDPFs illustrate that CIDA has examined for each country the economic situation, level of poverty and social policies, governance and political sustainability, the role of women in development, environmental issues, and other donor activities involved. These are all elements that help CIDA assess the country's absorptive capacity, assess the risks involved, and develop an appropriate strategy for Canada's development assistance in the country.
In regard to an early warning system, the performance assessment methodology/model that is being developed (see paragraphs 13.66 to 13.68) will provide managers with the tools they need to identify and report on projects and programs that are not achieving expected results, and to use the information collected to change the course of activities.
Another critical element of CIDA's risk management strategy is the adoption of the new performance review policy (see paragraphs 13.74 to 13.80). Of particular importance is the new approach to planning review activities, which ensures that programming and management areas with the highest priority are examined first. For example, each of the six program priorities will be examined within the next three years.

Institutionalizing Lessons Learned

CIDA's steps to strengthen its learning culture

13.71 CIDA's new performance review policy (see paragraphs 13.74 to 13.80) is one of the Agency's building blocks in strengthening its organizational learning culture:

The new policy makes it clear that all managers are accountable for monitoring performance, demonstrating results and using lessons learned, as part of the normal management process.
An integrated system of performance assessment and results aggregation is being designed for the Agency's consideration. It is intended to produce information on results and lessons learned that can be easily accessed within CIDA and by its partners. CIDA will draw on project evaluations, end-of-project reports and institutional assessments as well as on corporate performance reviews to provide thematic syntheses of results and lessons learned. Lessons learned (including those from the field) will be captured and shared within CIDA and with partners, recipient countries and the Canadian public through various mechanisms, including an annual review of results, newsletters and thematic journals.
CIDA will prepare synthesis reports on audits and evaluations of significant issues so that conclusions can be shared among its staff and with partners. This will enhance knowledge about development and about cost-effective management practices.

13.72 An innovative evaluation in which CIDA adopted a more participative approach to conducting the study and sharing its results was the recently completed evaluation of its Women in Development (WID) policy. The study broke new ground in evaluating the effects of a policy rather than of a project or program, something that few departments of the Government of Canada have attempted. This approach is increasingly important as development assistance agencies turn from capital projects to policy dialogue and institutional development activities that are crucial in the developing world. The evaluation included case studies in six countries, which were selected to give the research team a wide exposure to CIDA's Women in Development activities in a variety of cultural and economic contexts. Two countries were selected in the Americas, two in Africa and two in Asia. The CIDA evaluation team held focus group discussions and meetings with the recipient governments, local institutions and other donor agencies, as well as with local women's organizations involved in development projects. The final report was widely discussed and distributed within the donor community and the participating recipient countries.

13.73 Other key elements of CIDA's approach to maintaining and continuing to build an organizational learning culture include:

maintaining CIDA's corporate memory capacity, which has existed since 1984 and which collects and can disseminate in various forms (for example, by sector or by country) recommendations and lessons learned from previous sector, program and project evaluations;
continuing to manage a database listing the evaluations and related studies completed by members of the Expert Group on Aid Evaluation - Development Assistance Committee (DAC) of the Organization for Economic Co-operation and Development (OECD). It should be noted that CIDA, on behalf of the DAC, keeps this database, which is accessible to all members and is a great resource for donors' evaluators and researchers;
adopting new project planning processes (see paragraphs 13.88 and 13.89) which require as one of the first steps to planning new projects that the project manager examine relevant lessons learned in the sector of activity and country or region concerned;
adopting a new Human Resources Management Strategy for 1995-1998, which includes a review of CIDA's core competencies to ensure that they encompass the collective learning and skills needed by the Agency in the future. The strategy also includes shifting training and development efforts to the acquisition of needed competencies and developing a recruitment strategy in keeping with the needs of the Agency;
continuing to develop its information management infrastructure and systems to allow headquarters and field employees to communicate effectively among themselves as well as with partners and other government departments; and
demonstrating a clear preference for using and building CIDA's internal skills and capacity, while contracting out only for timely and highly specialized expertise.

Upgrading Audit and Evaluation

CIDA's new Performance Review Policy will upgrade audit and evaluation

13.74 CIDA has developed a new Performance Review Policy in consultation with Treasury Board and the Office of the Auditor General. This new policy will help CIDA better demonstrate and report on aid effectiveness and management performance. It sets out a framework for performance review that defines the types of reviews and their purpose, corporate and branch accountabilities for review, and how the information produced by the reviews will be used. The new policy states clearly that all managers are accountable for demonstrating results and monitoring performance. The policy also calls for the Performance Review Committee (CIDA's Executive Committee, with observers from the Office of the Auditor General and the Treasury Board Secretariat) to meet annually to approve the performance review work plan, consisting of corporate-level audits and evaluations.

13.75 CIDA now will be using three major types of reviews: corporate internal audit; corporate program evaluation; and branch assessment of performance. These will be integrated as much as possible to maximize coherence, efficiency and learning. CIDA also will systematically collect and analyze performance review information to assess development effectiveness, identify lessons learned, and report on aid effectiveness. A strategy and a three-year performance review plan were established in March 1995 to develop the major review instruments and complete reviews of high-priority program and management areas. The Agency is taking steps to enhance its capacity for better evaluations and audits. Staff resources for performance assessment in the program branches are being developed, and audit and evaluation functions in the Performance Review Division are being upgraded. A critical first step in implementing the plan will be to complete the staffing of corporate and branch performance review functions by the end of 1995.

13.76 The performance review plan focusses on the six programming priorities outlined in Canada in the World . These new reviews are now scheduled over the next three years so, for the first time, CIDA will have comprehensive coverage of its main priorities in a reasonable period of time. Women in Development and Gender Equity will be reviewed first, because some work has already been completed (see paragraph 13.72) and because the review will coincide with the Fourth Conference on Women, to be held in Beijing in September 1995. Basic Human Needs and Infrastructure Services were selected for reporting in the fall of 1996 because of the high interest expressed by Parliament and the public in general. Private Sector Development will be reviewed later in 1996, Environment in 1997, and Democratization and Good Governance in 1998, to allow time for CIDA's operational experience in these areas to mature before performance is reviewed. The reviews will address issues of relevance, sustainability, development results and costs, as well as management effectiveness, efficiency and economy. They will also address the relative effectiveness of the main channels of aid, lead to an overall synthesis of findings and an action plan, and contribute to policy development and reporting to Parliament.

13.77 The performance review plan also sets out an ambitious agenda of new methodology development, to produce instruments and approaches to support the reviews and to provide branch managers with the tools they need to assess the performance of their programs and projects toward achievement of expected results. Over 1995 and 1996, new instruments will be developed. (Paragraphs 13.66 and 13.67 describe progress in this area.)

13.78 Another improvement to be made as a result of the new performance review policy is that internal audit will no longer concentrate on administrative and project management procedures, but will examine issues most significant to the Agency, such as the implementation of new systems and procedures. There also will be audit follow-ups and sharing of audit results, to ensure that internal audits are used to guide future activities and to highlight and disseminate lessons on what management practices work and do not work.

13.79 CIDA recently has taken other measures to give internal audit and evaluation greater importance as management functions. In June 1995, the Executive Committee agreed to meet quarterly to review progress on corporate audits and evaluations. This will allow the committee to be aware of important issues emerging from audits and evaluations that may require discussion and quick executive action. In addition, the new Director of Internal Audit will submit a plan to the Executive Committee recommending a new organizational structure for audit that will ensure adequacy of coverage and strategic use of resources.

13.80 CIDA's approach for sharing lessons learned from its reviews is described in paragraph 13.71 and 13.72.

Clarifying Accountability

CIDA's steps toward clearer accountabilities

13.81 CIDA recognizes its accountability for achieving and reporting on results. Its President has stated this clearly at various parliamentary committee meetings. With regard to internal clarification of accountability, CIDA has developed a corporate accountability framework to describe how branches share the accountability for planning, managing and reporting on the implementation of the Official Development Assistance policy, and for ensuring good relations with Parliament, other departments and stakeholders. CIDA plans to complement this with a policy on results-based management that will clarify accountabilities in this area (see paragraph 13.42), and with an expanded corporate accountability framework to ensure a common understanding of functional and managerial areas of accountability. Branch frameworks also will be developed. As well, CIDA has made improvements in reporting to increase transparency, thereby reinforcing its accountability (see paragraphs 13.94 to 13.96).

13.82 With regard to the clarification of accountability between CIDA and its partners (suppliers of goods and services), the Agency started work on the concept of results-based contracting by producing a draft framework in the summer of 1994. It also has undertaken some early experiments involving contracts, which apply the results-based management philosophy. CIDA recognizes that results-based contracting is key to the success of managing for results, and is committed to continuing work in this area. Over the next year, it will continue to develop results-based contracting as part of its work on the new results-based management policy, along with other business re-engineering efforts (see paragraphs 13.85 and 13.87).

13.83 Progress in results-based contracting has been limited. However, CIDA considers that it would be counterproductive to introduce results-based contracting unilaterally without involving its partners and before it has made more progress in results-based management. As discussed in paragraphs 13.66 to 13.68, evaluating the results of aid is very complex and all donor agencies are struggling to find simple and cost-effective ways to do this. CIDA believes that its work on developing a methodology to evaluate the results of bilateral programs and projects will help it arrive at a common understanding with its partners about results-based management and contracting. In the meantime, CIDA is co-operating with both the profit and the not-for-profit sectors to develop an approach that is satisfactory to all parties concerned. Several consultation groups have been formed to discuss and generate solutions and consensus on major areas of concern, including:

finding ways to account for the risk that CIDA's partners encounter if the recipient country does not, for whatever reason, deliver on its commitments in a timely manner;
ensuring a mutual agreement and understanding on results, performance indicators and the collection of data, including baseline data; and
ensuring a common understanding on how results should be measured.

13.84 As for improving its agreements with recipient countries, CIDA's new process for developing regional and country policy frameworks calls for strengthening its consultations with recipient countries throughout the process (see paragraphs 13.56 to 13.61). This will help ensure a common understanding between CIDA and the recipient country.

Streamlining the Way CIDA Runs Its Business

CIDA has made changes to streamline its business processes

13.85 Over the last year, CIDA has conducted a number of re-engineering studies to streamline internal processes so that they will become more cost-effective and focussed on results. Business processes that have been streamlined include planning and approval of bilateral programs and projects, CIDA's contracting regime, and management and personnel support service functions. Reforms to the new process for country or regional programming and the new project planning and approval processes are described elsewhere. Key elements of changes made to date in contracting are the elimination of CIDA's in-house inventory of consultants and the use of the Open Bidding System to advertise contracting opportunities. The new system is market-driven, less costly, more transparent, and intended to improve competitiveness. More changes are being made to reduce delivery time and adopt results-based contracting (see paragraphs 13.82 and 13.83). Agency management and personnel support services are now being modified to become more cost-effective and client-driven. As well, CIDA is improving its information management to get the right information at the right time and be in a position to report well (see paragraph 13.42).

13.86 It is too early to assess the impact of the changes on the cost-effectiveness of delivering its aid program, but CIDA anticipates significant savings. For example, the costs of Agency support services will be reduced over the next three years. CIDA will continue its streamlining efforts by re-engineering processes that have not yet been reviewed and by developing an approach for continuous streamlining.

13.87 CIDA is a centralized organization. Its projects are implemented by executing agencies or non-governmental organizations in the field. The CIDA project management team comprises primarily headquarters personnel, with the active participation of CIDA field representatives whenever possible. Project management positions at CIDA headquarters must be held for a minimum of three years, and are held on average for approximately four years. The recommended duration for CIDA field assignments is two or three years, depending on the level of hardship of the post. For 1993 and 1994, the average duration of CIDA postings was approximately three years. A particular challenge here is optimizing the cost-effectiveness of the duration of an assignment abroad against the now fewer opportunities to offer employees this essential field experience. As well, there is the ongoing presence of project personnel contracted by the executing agency. All of these factors contribute to the continuity and stability of project management.

Revising CIDA's Approach to Project Management

New approaches to CIDA's project management

13.88 CIDA has re-engineered its processes for bilateral program and project planning and approval with the objective of making them faster, simpler, cheaper and more effective. The redesign of the contracting process also will contribute to reduced delivery time and increased efficiency and effectiveness. Following are the major components of the new processes:

A new approach to country or regional programming has been adopted. The new country or regional policy frameworks will describe the objectives and expected results for each program, the risks involved, and a framework for monitoring and evaluating progress toward achieving results. More information and examples on country and regional programming are provided in paragraphs 13.56 to 13.61.
Criteria to appraise proposed projects have been defined. CIDA will now assess every new project to determine whether it: reflects ODA priorities and policy and program objectives; clearly defines objectives, expected results, the potential for sustainability, and possible adverse effects; reflects lessons learned; and clearly defines both the expected risks and a risk management strategy.
Seven business lines were introduced to replace the previous single model for bilateral projects and to allow for different planning and approval processes, depending on the type of project. Examples of new lines of business include the quick transfer mechanism for small and time sensitive projects; the blueprint model for complex projects that are fully planned prior to implementation (such as infrastructure-related projects); the iterative model for complex and integrated projects that require significant planning and analysis throughout the life of the project; and the local initiatives model for projects that are developed in the field.
An analytical framework has been defined for each line of business. The framework identifies the type and characteristics of the analysis that normally would be carried out as part of project planning activities. The nature and extent of the analysis is dependent on the size, complexity and type of project and may include technical feasibility analysis, socio-cultural and gender analysis, environmental analysis, economic analysis, institutional and management analyses, risk analysis and an analysis of the expected benefits to Canada and the recipient country.
CIDA is reviewing field delivery services and has developed a plan of action to improve their cost-effectiveness. The roles and responsibilities and a common management framework were defined for CIDA program support units (PSUs) in the field. A common accounting system for cost recovery also was developed and is being tested through a pilot project in six PSUs. CIDA is presently working with the Department of Foreign Affairs and International Trade to review the size of the human resource base in field operations. A Treasury Board constraint that discouraged the posting of CIDA personnel in PSUs was removed recently.

13.89 CIDA's experience with these new approaches is still very limited. However, through monitoring of renewal, CIDA has identified problems that could have an adverse impact on the anticipated savings. For example, it found that not all managers are comfortable with the new processes and that they tend to rely on previous, well-understood methods to verify documents. To respond to their concerns, CIDA will take a number of actions. By December 1995, it will provide targeted training and coaching on the new approaches; develop a challenge function to encourage ongoing renewal, i.e. continual challenging of existing and new approaches; and develop a vehicle for feedback and learning about their application.

Better Internal Control over Contributions Involving Counterpart Funds

Review completed, pilot under way, and audit by CIDA scheduled

13.90 Since the Auditor General's 1993 audit, CIDA has completed a review of counterpart funds that led to the publication in June 1994 of new directives on counterpart funds. The new directives define the accountabilities and responsibilities of CIDA and the host country for managing counterpart funds, and establish guidelines for their efficient and effective management. CIDA also has been working with the Office of the Auditor General on a pilot project in Bangladesh to examine the use of a supreme audit institution to audit counterpart funds. As stated in paragraph 13.63, project sustainability is enhanced when the participation and commitment of the host country during project planning is encouraged. The pilot project in Bangladesh serves as an example of the new participative approach. The project was designed co-operatively by CIDA, the Office of the Auditor General, the Government of Bangladesh, and the Comptroller and Auditor General of Bangladesh. The first pilot audit report from the Comptroller and Auditor General of Bangladesh is expected in January 1996. Lessons learned from this pilot project will be used in planning future initiatives.

13.91 In addition, as part of its decision to review issues that are most significant to the Agency (see paragraph 13.78), CIDA will conduct an audit of counterpart funds in 1996. The audit will examine CIDA's practices and controls in accounting for and reporting on the use of counterpart funds to ensure that funds are spent for intended purposes.

CIDA Transparency

Transparency with partners, stakeholders and recipient countries

13.92 CIDA has started to make improvements in its practices for consulting with stakeholders and informing the public. A consultation strategy to improve relations with stakeholders was put in place in 1993. CIDA also instituted a spokesperson policy in 1994 to broaden its communications with the media and the general public. In 1994-95, it conducted over 30 official consultations of different types. For example, program staff consulted with Canadian stakeholders and partners in developing new country program strategies; CIDA met with the supplier community to discuss changes to its contracting regime (see paragraph 13.83); and held a number of annual consultations with Canadian non-governmental organizations. To improve its transparency with recipient countries, CIDA introduced a greatly improved consultative process for the preparation of regional or country development policy frameworks (see paragraphs 13.56 to 13.61). CIDA's approach for sharing lessons learned with its partners, stakeholders and recipient countries is described in paragraphs 13.71 to 13.73.

13.93 Although progress has been made, CIDA recognizes that more work is needed to develop employee awareness and understanding of the nature and importance of relations with stakeholders and the public. The next steps in this area will include promoting and reinforcing the importance of high-quality service, and continued training and coaching on consultations and stakeholder relations.

Reporting to Parliament

13.94 CIDA is improving its reports to Parliament to increase their focus on objectives and achievement of results. Its Part III of the 1995-96 Estimates presents more clearly information on the Agency's program objectives and priorities, and describes its approach to achieving and demonstrating development results. In future years, improved performance review information (such as the reviews of the six program priorities described in paragraphs 13.76 to 13.78) will strengthen further its ability to report to Parliament on results being achieved.

13.95 Since 1993, the Office of the Auditor General also has reported on two other specific improvements by CIDA that are contributing to greater transparency and more useful reporting to Parliament. CIDA's Part III of the Estimates now contains more information on the effectiveness of Regional Development Banks. It also provides a description of Canada's International Assistance Envelope (IAE) that explains clearly the IAE activities carried out by CIDA and by other departments. In addition, CIDA officials have continued to appear on request before parliamentary committees.

13.96 Also of direct relevance to parliamentarians is CIDA's 1995-96 ' 1997-98 Departmental Outlook. It will provide Parliament with further information on CIDA's key actions, priorities and directions. It also will strengthen further CIDA's accountability to Parliament and its reporting on progress made to date.