Department for International Development - Departmental Overview, November 2018
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Departmental Overview, November 2018
Department for
International DevelopmentIf you would like to know more
about the National Audit Office’s CONTENTS
Department for This overview summarises the work of the Department for International Development (NAO’s) work on the Department
for International Developement,
International Development (the Department) including what it does, how much it spends, recent and planned
please contact: NEXT
(DfID) changes, and what to look out for across its main business areas and services.
Neil Sayers, Director, Department
for International Development,
Bookmarks Financial Audit PREVIOUS
About the Department neil.sayers@nao.org.uk
OverviewOverview 020 7798 7536
How the Department is structured. LAST PAGE
VIEWED
How the Department spends its money – funding development and humanitarian Keith Davis, Director, Department
programmes.
Managing public money – the Department’s use of loans and financial investments.
for International Development,
The Department’s major programmes – some examples. Value for Money audit
Major developments during 2017 and 2018, and for 2019.
keith.davis@nao.org.uk
Exiting the European Union – the Department’s current and potential future relation-
ship with the EU. 020 7798 7284
Our work looking at the Department for International Development in 2016.
About the Department How the Department Where the Department Managing public money
part one If you are interested in the NAO’s
The Department’s approach to tackling fraud is structured spends its money
part Two
work and support for Parliament
Managing the Official Development Assistance target more widely, please contact:
part Three
Promoting international development
part four
parliament@nao.org.uk
What to look out for 020 7798 7665
The Department’s Major developments during Exiting the European Union Our work looking at the
major programmes 2017 and 2018, and for 2019 Department for International
and developments Development in 2016 The National Audit Office scrutinises public spending
for Parliament and is independent of government.
The Comptroller and Auditor General (C&AG),
Department for International Development
Sir Amyas Morse KCB, is an Officer of the House of
Commons and leads the NAO. The C&AG certifies the
accounts of all government departments and many
other public sector bodies. He has statutory authority
to examine and report to Parliament on whether
PART ONE PART TWO PART THREE PART FOUR
departments and the bodies they fund, nationally
and locally, have used their resources efficiently,
The Department’s Managing the Promoting What to look out for effectively, and with economy. The C&AG does this
through a range of outputs including value-for-money
approach to Official Development international reports on matters of public interest; investigations to
tackling fraud Assistance target development establish the underlying facts in circumstances where
concerns have been raised by others or observed
through our wider work; landscape reviews to aid
|
Departmental Overview 2018
transparency; and good‑practice guides. Our work
ensures that those responsible for the use of public
money are held to account and helps government to
improve public services, leading to audited savings of
£741 million in 2017.
Design & Production by NAO External Relations
DP Ref: 11775-001
© National Audit Office 2018
2OVERVIEW
CONTENTS
About the Department
The Department for International Development NEXT
(the Department) leads the UK government’s effort
The Department for International Development (the Department) leads the UK government’s effort to end extreme poverty, deliver the The Department
UN’s Sustainable works
Development Goals with
overseas, and tackle a range
global challengesof organisations
in line with the to help it deliver its objectives
to end extreme
government’s UK Aid Strategy. poverty, deliver the UN’s Sustainable
The UK Aid Strategy (November 2015) has four objectives.
Development
1. Strengthen global peace, Goals
security and overseas,
governance. and tackle global PREVIOUS
2. Strengthen resilience and response to crisis.
challenges in line with the government’s UK Aid Strategy. With other UK government departments
3. Promote global prosperity.
4. Tackle extreme poverty and help the world’s most vulnerable.
5. The Department is committed to spending 50% of its budget in fragile states and regions.
• Working with the Department for Business, Energy & Industrial Strategy and the Department for
LAST PAGE
Environment, Food & Rural Affairs on combatting the effects of climate change. VIEWED
The UK
The Department’s Aid
Single Strategy
Departmental (November
Plan sets its objectives and how it2015)
will achievehas
them. These objectives are aligned with those established by the UK Aid Strategy (see above). It also includes an objective to Improve the value
for money and efficiency of UK aid.
Rt Honfour objectives.
Penny Mordaunt MP was appointed Secretary of State for International Development in November 2017. • Contributing to the cross-government Conflict, Stability and Security Fund (focused on conflict and instability)
Matthew Rycroft joined the Department as Permanent Secretary in January 2018. and the Prosperity Fund (focused on promoting growth and prosperity) – both in developing countries.
Strengthen global peace, security
The UK has committed to spending 0.7% of UK gross national income on Official Development Assistance (ODA). • Developing Joint Serious and Organised Crime platforms with the Home Office and the Foreign
and governance. & Commonwealth Office.
The Department works with a range of organisations to help it deliver its objectives
•
Working with the Department for Business, Energy & Industrial Strategy and the Department for Environment, Food & Rural Affairs on combatting the Promoting trade
effects of climate alongside the Department
change. for International Trade.
Contributing to Strengthen
the cross-governmentresilience and
Conflict, Stability and response
Security Fund (focusedto crisis.
on conflict and instability) and the Prosperity Fund (focused on promoting growth and prosperity) – both in developing countries.
Developing Joint Serious and Organised Crime platforms with the Home Office and the Foreign & Commonwealth Office.
Promoting trade alongside the Department for International Trade.
Promote global prosperity.
Bilaterally with partner countries.
Working in 32 countries (across Asia, Africa and the Middle East) and five regions (across Africa, Asia and the Caribbean), and through development relationships with three Overseas Territories – distributing
Tackle extreme
aid focused on development and humanitarian poverty andwithhelp
projects, working the
both local and world’s
multilateral organisations. Bilaterally with partner countries With multilateral organisations
The Departmentmost vulnerable.
With civil society.
also has what it describes as development partnerships with China, India and South Africa.
• Working in 32 countries (across Asia, • Supporting peacekeeping and
Offering volunteering programmes including the International Citizen Service (for young people) and the Volunteering for Development programme Africa
(for skilledand the Middle East) and five
professionals). security through the UN Security
Providing funding to organisations via UK Aid Direct.
The Department is committed to spending 50% of regions (across Africa, Asia and the Caribbean), Council and the World Bank.
and through development relationships with three
itssociety.
With civil budget in fragile states and regions. Overseas Territories – distributing aid focused on • Combating disease and encouraging public health
Offering volunteering programmes including the International Citizen Service (for young people) and the Volunteering for Development programme (for skilled professionals). programmes with, for example, GAVI (the Vaccine
Providing funding to organisations via UK Aid Direct. development and humanitarian projects, working
The Department’s Single Departmental Plan sets Alliance) and the World Health Organization.
with both local and multilateral organisations.
its objectives
organisations.and how it will achieve them. These
•
Department for International Development
With multilateral Providing humanitarian aid through, for example,
Supporting peacekeeping and security through the UN Security Council and the World Bank. • The Department also has what it describes as
the United Nations Development Programme and
objectives
Combating are aligned
disease and encouraging with
public health those
programmes with,established
for example, GAVI (theby theAlliance)
Vaccine UK and the World Health Organization. development partnerships with China, India and
Providing humanitarian aid through, for example, the United Nations Development Programme and World Food Programme. World Food Programme.
Aid Strategy (see above). It also includes an objective to
Protecting women and children through, for example, the Global Partnership to End Violence against Children.
South Africa.
Improve the value for money and efficiency of UK aid. • Protecting women and children through, for
With the private sector. example, the Global Partnership to End Violence
Contracting with private sector organisations to advise on and/or implement the Department’s programmes against Children.
Promoting investment through CDC Group plc, the UK’s Development Finance Institution.
With civil society
Rt Hon Penny Mordaunt MP was appointed Secretary of
State for International Development in November 2017.
• Offering volunteering programmes
including the International With the private sector
Citizen Service (for young people) and the
|
Matthew Rycroft joined the Department as Permanent • Contracting with private sector
Departmental Overview 2018
Volunteering for Development programme
Secretary in January 2018. (for skilled professionals). organisations to advise on and/or
implement the Department’s programmes
• Providing funding to organisations via UK
Aid Direct. • Promoting investment through CDC Group plc,
The UK has committed to the UK’s Development Finance Institution.
spending 0.7% of UK gross
national income on Official
Development Assistance (ODA).
3OVERVIEW
CONTENTS
How the Department is structured 1/2
The Department is organised into four divisions: NEXT
Country Programmes The Department employed almost 3,400 people at the end of March 2018 PREVIOUS
1 Includes the Department’s work in overseeing its programmes
in Africa, Asia, the Middle East, the Caribbean and Overseas
Territories (see details overleaf).
75% UK civil servants
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and
Economic Development and International
How the Department is structured
The Department is organised into four divisions:
25% staff appointed in country
2 For example, economic development
1. Country Programmes
and international relations.
Includes the Department’s work in overseeing its programmes in Africa, Asia, the Middle East, the
Caribbean and Overseas Territories (see details overleaf).
2. Economic Development and International
For example, economic development and international relations.
3. Policy, Research and Humanitarian
Includes policy development and research and evidence; stabilisation; humanitarian, security and
migration issues; and the chief scientist and chief economist.
Includes HR, finance, communications, and strategy development.
The Department is the sole shareholder in the UK’s Development Finance Institution, CDC Group plc,
which provides capital investment to businesses in developing countries.
Policy, Research and Humanitarian
The Department employed almost 3,400 people at the end of March 2018
3 75% UK civil servants
Includes policy development
and
and research and evidence;
stabilisation; humanitarian,
25% security
staff appointed and migration issues;
in country
Department for International Development
and the chief scientist and chief economist.
The Department is also responsible for two non‑departmental public bodies.
The Commonwealth Scholarship Commission in the United Kingdom, which man-
ages the UK contribution to the Commonwealth Scholarship and Fellowship Programme.
The Independent Commission for Aid Impact, which provides independent scrutiny of
UK government aid.
Corporate Performance Group
4 Includes HR, finance, communications, and strategy development. The Department is also responsible for two non‑departmental
public bodies.
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• The Commonwealth Scholarship Commission in the United
Departmental Overview 2018
Kingdom, which manages the UK contribution to the Commonwealth
Scholarship and Fellowship Programme.
The Department is the sole shareholder in the UK’s Development Finance Institution, • The Independent Commission for Aid Impact, which provides
independent scrutiny of UK government aid.
CDC Group plc, which provides capital investment to businesses in developing countries.
4OVERVIEW
CONTENTS
How the Department is structured 2/2
NEXT
Programme spend by country office and region – 2017-18
A diagram showing the Programme spend by country office and region – 2017-18
Country office/region
PREVIOUS
Pakistan 367.2
Ethiopia 322.7
Nigeria 282.4
LAST PAGE
Syria (including Turkey) 278.9 VIEWED
Somalia 245.3
Yemen 202.8
Democratic Republic of Congo 173.8
Bangladesh 172.9
Tanzania 165.2
South Sudan 162.7
Afghanistan 147.5
Kenya 130.5
Uganda 124.8
Africa Regional Department 117.5
Burma 110.2
Sierra Leone 109.2
Sahel 108.0
Nepal 96.4
This figure shows that the largest country programme
Zimbabwe 93.8 is in Pakistan – representing 8.6% (£367 million) of the
Caribbean 87.9 Department’s total spending through its country offices
Lebanon 84.9 and regions.
Malawi 74.5
Programmes in five countries – Pakistan, Ethiopia,
Department for International Development
Overseas Territories 70.8
Nigeria, Syria, and Somalia – accounted for 35% of
Occupied Palestinian Territories 64.9
this expenditure (£1.5 billion).
Sudan 59.2
Rwanda 58.9
Zambia 50.8
Ghana and Liberia 50.5
Jordan 49.6
Mozambique 48.8
Iraq 47.6
India 44.7
Asia Regional Team 35.6
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Indonesia (UK Climate Change) 14.7
Departmental Overview 2018
Ukraine 6.7
Central Asia 4.0
Middle East and North Africa Department Regional Team 2.2
North Africa Joint Unit 1.5
0 50 100 150 200 250 300 350 400
Expenditure 2017-18 (£m)
Source: Department for International Development Annual Report and Accounts 2017-18
5OVERVIEW
CONTENTS
How the Department spends its money – funding development and humanitarian programmes
a diagram showing thatin 2017-18 the Department spent £11
billion across all of its activities NEXT
In 2017-18 the Department spent £10,969 million against a budget of £11,210 million – an
In 2017‑18 the Department spent £11 billion across all of its activities
underspend of £241 million.
In 2017-18 the Department spent £10,969 million
The majority – £10,377 million (94.6%) – was spent on development and humanitarian pro‑
grammes. against a budget of £11,210 million – an
Almost 60% of the Department’s expenditure (58% – £5,995 million) was directed towards policy East priori‑and Central Africa underspend of £241 million. PREVIOUS
ties including economic development, international relations, and research and evi‑ million
£1,495
dence. This includes funding provided to multilaterals and civil society, and to developing policy programmes. The majority – £10,377 million (94.6%) – was spent
Just over 41% (£4,270 million) of expenditure supported the Department’s Regional Programmes
Middle East and North Africa on development and humanitarian programmes.
– interventions through individual country programmes as well as regional programmes covering, for example,
LAST PAGE
Africa and Asia. Asia, Caribbean and £733 million
The Department spent around 1% of its budget on supporting peacekeeping and economic development
Overseas Territories
• Almost 60% of the Department’s expenditure VIEWED
activities through cross cutting funds such as the Conflict, Stability and Security Fund and the Prosperity (58% – £5,995 million) was directed towards
£1,159 million
Fund, which operate across a number of government departments. policy priorities including economic
development, international relations, and
The Department’s expenditure has increased steadily since 2010, when total
Regional Programmes research and evidence. This includes funding
spend was £7.7 billion – up a total of 42%. This overall increase is largely due to
£4,270 million provided to multilaterals and civil society, and to
the government’s commitment to meeting the ODA target.
West and Southern Africa
developing policy programmes.
£884 million
• Just over 41% (£4,270 million) of expenditure
supported the Department’s Regional
Programmes – interventions through individual
country programmes as well as regional
programmes covering, for example, Africa
Non-departmental and Asia.
Middle East and North Africa
public bodies £52 million
£26 million • The Department spent around 1% of its budget
Asia, Caribbean and on supporting peacekeeping and economic
Total programme expenditure
Overseas Territories development activities through cross cutting
£10,377 million
£35 million funds such as the Conflict, Stability and Security
Fund and the Prosperity Fund, which operate
East and Central Africa across a number of government departments.
£2 million
Department for International Development
Prosperity Fund Conflict,
International Relations £6 million
£1,928 million Stability and Conflict, Humanitarian
Security Fund Security and Stabilisation
Policies, Priorities, International £115 million £25 million
Organisations and Humanitarian
Economic Development £5,995 million
£1,675 million West and Southern Africa
£0 million The Department’s expenditure has increased
steadily since 2010, when total spend was
Research and Evidence £7.7 billion – up a total of 42%. This overall
Conflict, Humanitarian
Security and Stabilisation £416 million increase is largely due to the government’s
commitment to meeting the ODA target.
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£343 million
Departmental Overview 2018
Policy
£1,633 million
Notes
1 Total programme expenditure takes account of income of £35 million from loan repayments.
2 Figures may not cast due to rounding.
3 Figures are rounded to the nearest milion.
Source: Department for International Development Annual Report and Accounts 2017-18
6OVERVIEW
CONTENTS
Managing public money – the Department’s use of loans and financial investments
NEXT
Alongside grants to specific programmes (amounting to almost £11 billion in 2017-18),
the Department uses loans and financial investments to achieve its development goals.
PREVIOUS
Loans Bilateral and LAST PAGE
VIEWED
Bilateral loans are made directly to sovereign states. Multilateral
Loans
£941m
Multilateral loans are made to sovereign states through
multilateral bodies such as the European Investment Bank.
Loans
From 1 January 2018 loans ceased to be eligible for ODA. £1,004m
Development Capital Loans
Managing public money – the Department’s use of loans and financial investments £63m
Alongside grants to specific programmes (amounting to almost £11 billion in 2017-18), the Department uses loans and financial investments to
achieve its development goals.
Loans
Bilateral loans are made directly to sovereign states.
Financial investments
Multilateral loans are made to sovereign states through multilateral bodies such as the
European Investment Bank.
From 1 January 2018 loans ceased to be eligible for ODA. Loans and financial
The
FinancialDepartment
investments makes financial investments in order to achieve investments
The Departmentdevelopment
defined makes financial investments in order to achieve
objectives while
definedretaining
develop‑ an ongoing, £10,913m
ment objectives while retaining an ongoing, recoverable interest in the assets funded.
recoverable interest in
The single largest investment heldthe
by theassets
Department isfunded.
100% of the share capital
in CDC Group plc. CDC aims to demonstrate to the market that it is possible to invest
successfully in challenging environments, thereby attracting other sources of investment
The single
and growing largest
the overall economy. In investment heldwasby
2017 CDC’s portfolio return the
7.8%, Department
up from 5.2% is 100%
Department for International Development
of the share capital in CDC Group plc. CDC aims to demonstrate
in 2016.
International Financial Institutions, such as the World Bank, provide support to
to the market
governments that
and the private itand
sector is are
possible toDepartment’s
a key part of the invest successfully
approach to in challenging CDC
the involvement of multilateral bodies. The Department currently holds investments in nine Group plc
environments, thereby attracting other sources of
International Financial Institutions, the largest of which is the European Reconstruction and
investment and
Financial £5,113m
growing the overall
Development Bank (£1.2economy.
billion at 31 MarchIn 2017 CDC’s portfolio return was 7.8%, up from 5.2% in 2016.
2018).
investments
£9,909m
International Financial Institutions, such as the World Bank, provide support to governments and the
private sector and are a key part of the Department’s approach to the involvement of multilateral bodies.
The Department currently holds investments in nine International Financial Institutions, the largest of
which is the European Reconstruction and Development Bank (£1.2 billion at 31 March 2018). International Financial
|
Other development capital Institutions (IFIs)
Departmental Overview 2018
£97m £4,699m
Note
1 Balances as at 31 March 2018.
Source: Department for International Development Annual Report and Accounts 2017-18
7OVERVIEW
CONTENTS
The Department’s major programmes – some examples
NEXT
PREVIOUS
LAST PAGE
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Strengthen global Strengthen resilience Strengthen
ernance global peace, security, and gov-extreme poverty
The Department’s major programmes – some examples
Promote Tackle
peace, security, and response to crisis global prosperity and help the world’s
Improving tax systems – £27.2 million (2017).
and governance most vulnerable
Combatting modern slavery – the Department announced £40 million of new funding in 2017 intended to reach at least 500,000
people at risk of slavery.
Launching the Transparency Agenda, to improve the transparency of international aid – February 2018.
Strengthen resilience and response to crisis
Undertaking humanitarian relief Investing development capital to
Undertaking humanitarian relief – £1,465 million across eight countries and regions such as Yemen and the Sahel region (in 2017).
Improving tax systems – – £1,465 million across eight Building vulnerablecreate moreto the
people’s resilience and better
impacts jobs
of climate changethat
and supporting low‑carbon development through Interna-
tional Climate Finance – £586 million (2017-18). Announcing an additional
£27.2 million (2017). countries and regions such as benefit
Addressing global health people
risks through, across
for example, society,
antimicrobial resistance – £250 million.
Promote global prosperity
£75 million investment in the
Yemen and the Sahel region including women – £1,247 million
Global Partnership for Education, to
Combatting modern slavery – the (in 2017). Investing development capital(cumulative
to create more andto 2017-18).
better jobs that benefit people across society, including women – £1,247 million
(cumulative to 2017-18). support its pledge to keep 880,000
Department announced £40 million Committing £7.4 million in 2017 to the Women Entrepreneurs Finance Initiative – which provides advocacy on women’s entrepre-
children in school each year
of new funding in 2017 intended Building vulnerable people’s neurship issues, as well as access to, for example, debt, equity and insurance products.
Committing £7.4 million in 2017
Supporting legislation to allow up to £12 billion of investment through CDC. (in February 2018).
to reach at least 500,000 people resilience to the impacts of climate to the Women Entrepreneurs
Department for International Development
Tackle extreme poverty and help the world’s most vulnerable
at risk of slavery. change and supporting low‑carbon Finance Initiative – which
Supporting the Global Polio
development through International provides
Announcing an additional £75 millionadvocacy
investment in theonGlobalwomen’s
Partnership for Education, to support its pledge to keep 880,000
children in school each year (in February 2018). Eradication Initiative – £100 million
Launching the Transparency Climate Finance – £586 million entrepreneurship
Supporting the Global Polio Eradication Initiative –issues,
£100 millionas well
pledged as
for 2018–2020.
Committing to spending an average of £225 million annually for the next five years on family planning. pledged for 2018–2020.
Agenda, to improve the (2017-18). access to, for example, debt, equity
transparency of international and insurance products.
Committing to spending an average
aid – February 2018. Addressing global health risks
of £225 million annually for the next
through, for example, antimicrobial Supporting legislation to allow
five years on family planning.
resistance – £250 million. up to £12 billion of investment
|
through CDC.
Departmental Overview 2018
8OVERVIEW
CONTENTS
Major developments during 2017 and 2018, and for 2019
A diagram showing Major developments during 2017 and 2018, and for 2019
NEXT
January 2017 January 2018
The Department published its The Department’s new Permanent
Economic Development Strategy. Secretary, Matthew Rycroft, starts. PREVIOUS
February 2017 February 2018 February/March 2018 March 2019
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CDC Act 2017 gained royal assent, The Department published its new The Department UK due to exit the EU.
allowing for investments up to, Transparency Agenda. established a
in certain circumstances, £12 billion Safeguarding Unit and
(the ceiling was £1.5 billion). hosted a Safeguarding
Summit in response to
widespread allegations
March 2017 of sexual assault by aid
workers.
Article 50 triggered, starting the
process of leaving the EU.
March 2018
The Department launched its
Strategic Vision for Gender Equality.
Department for International Development
October 2017 November 2017 June 2018 July 2018 September 2019
Organisation for Economic Hon. Penny Mordaunt appointed The International Development The Department co-hosted the UN Climate Summit.
Co-operation and Development’s as Secretary of State. Committee published its Global Disability Summit, along with
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Development Assistance report on the definition and the government of Kenya and the
Departmental Overview 2018
Committee agreed to look at administration of ODA. International Disability Alliance.
possible changes to ODA, to
allow short-term ODA support for The Department alongside
catastrophic humanitarian crises. BEIS and DEFRA published
the International Climate
The Department published its Finance results.
Supplier Review, including a new
code of conduct.
9OVERVIEW
CONTENTS
Exiting the European Union – the Department’s current and potential future relationship with the EU
Exiting the European Union – the Department’s current and potential future relationship with the EU NEXT
The European Union is one of the Department’s key partners. It provides funding to EU multilateral
The European Union is one of the Department’s key partners. It provides funding to EU multilateral organisations. In 2016,
the UK spent £1,504 million of multilateral ODA via the European Commission. This represented 11% of the UK’s total ODA
organisations. In 2016, the UK spent £1,504 million of multilateral ODA via the European
and 31% of theCommission.
UK’s multilateral ODA in 2016.
£1,031 million
This represented 11% of the UK’s total ODA and 31% of the UK’s multilateral ODA An inattribution
2016. of the UK’s annual contribution to the European Commission (£553 million of which PREVIOUS
is allocated to the Department and £478 million of which is allocated to non-DFID sources). This funds the Directorate-
General for European Civil Protection and Humanitarian Aid Operations (DG-ECHO) which focuses on, for
example, building resilience and responding to crises and the Directorate‑General for International Cooperation
The impact of the UK’s decision to leave the European Union
and Development (DG-DEVCO) which focuses on, among other things, development policy and aid delivery.
£1,031 million
LAST PAGE
£473 million VIEWED
Funding for the European Development Fund which funds activities focused on, for example, economic, social, and
The White
human development in countriesPaper
in Africa, theThe future
Caribbean, and acrossrelationship
the Pacific. between the United Kingdom and the
An attribution of the UK’s annual contribution to the European Commission The Department is managing five work streams relating to policies affected by leaving the EU.
European Union (July 2018) sets out how the UK’s departure from the EU does
These cover on- and off-budget development funding instruments, UK organisations and staffing.
(£553 million of which is allocated to the Department and £478 million of which is notinclude
Specific examples mean “that
planning the UK
and negotiating and
the UK’s the
post-exit EU onshould
relationship developmentnot stopand
and negotiating clarifying together to alleviate
acting
funding eligibility rules for UK organisations.
allocated to non-DFID sources). This funds the Directorate-General for European poverty, promote peace
The impact of the UK’s decision to leave the European Union and security, tackle migration and provide humanitarian
Civil Protection and Humanitarian Aid Operations (DG-ECHO) which focuses on, aid”.
The White Paper TheItfuture
alsorelationship
established between the theposition
United Kingdom that andthetheUK and EU
European Unioncan (July achieve more in
2018) sets out how the UK’s departure from the EU does not mean “that the UK and the EU should not stop
for example, building resilience and responding to crises and the Directorate‑General some
acting together areas
to alleviate by promote
poverty, continuing to act
peace and security, “in concert”.
tackle migration and provide humanitarian aid”. It also
established the position that the UK and EU can achieve more in some areas by continuing to act “in concert”.
for International Cooperation and Development (DG-DEVCO) which focuses on, The UK is proposing that an “overseas development assistance and international action accord”
among other things, development policy and aid delivery. which would Theprovide UKfor UK is proposing
participation that an
in “EU development “overseas
programmes development
and instruments” assistance and
and in “EU external spending
programmes”. international
The White Paper is clearaction accord”
that UK participation which
would require would provide
“an appropriate for UKand
level of influence participation in “EU
oversight over UK funds in line with the significant contribution and benefits that the UK brings”.
development programmes and instruments” and in “EU external spending
£473 million In its Annual Report and Accounts for 2017-18 (July 2018), the Department says that “it is in the UK’s interest
programmes”. The White Paper is clear that UK participation would require “an
that the EU continues to be a strong development partner” once the UK leaves the EU. It also stated that the
Department willappropriate
“provide continuity inlevel ofaccess
duty-free influence
to the UKand market oversight over UKcoun‑
for the least developed funds in line with the
Funding for the European Development Fund which funds activities focused on, tries, and [will] continue to offer…tariff reductions to around 25 other developing countries”. It will also seek to replicate
significant contribution and benefits that the UK brings”.
the EU’s Economic Partnership Agreement, which promotes trade with African, Caribbean and Pacific countries
for example, economic, social, and human development in countries in Africa, the “to contribute to sustainable development and poverty reduction”.
Caribbean, and across the Pacific. The Department concludes that, when the UK is no longer a Member State “our relationship with the EU will be different, and
[it] will decide how to spend the entirety In ofits[the
Annual Report
UK’s] foreign and Accounts for 2017-18 (July 2018),
aid budget”.
the Department says that “it is in the UK’s interest that the EU
Department for International Development
continues to be a strong development partner” once the UK
The Department is managing five work streams relating to policies affected by leaves the EU. It also stated that the Department will “provide
leaving the EU. continuity in duty-free access to the UK market for the least
developed countries, and [will] continue to offer…tariff reductions
These cover on- and off-budget development funding instruments, UK organisations to around 25 other developing countries”. It will also seek to
and staffing. replicate the EU’s Economic Partnership Agreement, which
Specific examples include planning and negotiating the UK’s post-exit relationship on promotes trade with African, Caribbean and Pacific countries “to
development and negotiating and clarifying funding eligibility rules for UK organisations. contribute to sustainable development and poverty reduction”.
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Departmental Overview 2018
The Department concludes that, when the UK is no longer a
Member State “our relationship with the EU will be different, and
[it] will decide how to spend the entirety of [the UK’s] foreign
At the Autumn Budget 2017, the Department was not allocated any of the
aid budget”.
£3 billion over two years provided to departments and devolved administrations
to help prioritise the programmes they identified as necessary for a successful
exit from the EU.
10OVERVIEW
CONTENTS
Our work looking at the Department for International Development in 2016
Our work looking at the Department for International Development in 2016
Securing value for money in the context of changing demands.
Our January 2016 report on Responding to Crises found that the Department
was responding to an increasing number of crises, with spending on humanitarian
interventions almost trebling between 2010-11 and 2014-15 to reach £1,288 NEXT
million. The Department was well placed to secure value for money for sudden onset
Securing value for money in the context
crises and more stable protracted crises, but its management of more fluid and Assessing the costs and benefits of Measuring development impact
protracted crises had yet to reach a similar level of maturity.
of changing demands major projects In 2015-16, the Department approved a PREVIOUS
Assessing the costs and benefits of major projects.
Our January
Our June 2016Realising
2016 investigation reporttheon Responding
benefits of the St Helena to Air-
Crises Our June 2016 investigation Realising the benefits £735 million recapitalisation of CDC to expand
port project examined the key assumptions in the Department’s business case
found that the Department was responding to of the St Helena Airport project examined the key its business. Our November 2016 report Investing
to support its £286 million investment in an airport on St Helena, and the likelihood
an increasing number of crises, with spending on
of realising the benefits. In October 2017, the airport became operational for
assumptions in the Department’s business case through CDC found that the Department’s oversight LAST PAGE
VIEWED
scheduled commercial flights, some 18 months later than planned due to the
humanitarian interventions
impact of wind conditions on safe landing. almost trebling between to support its £286 million investment in an airport of CDC had improved and that it had directed CDC
The Department’s cost–benefit model for the project was particularly sensitive to
2010-11 and 2014-15 to reach £1,288 million. The on St Helena, and the likelihood of realising the to address weaknesses identified by Parliament.
two assumptions – the number of tourists who will visit the island once the airport
Department
opens and the amount was well
they will placed
spend. The year in to
whichsecure value
the Department stopsfor benefits. In October 2017, the airport became The governance arrangements were thorough,
paying a subsidy, and the amount paid, will depend on whether these assumptions
money
are exceededforor missed.
sudden onset crises and more stable operational for scheduled commercial flights, but should make explicit the Department’s role
protracted crises, but its management of more fluid some 18 months later than planned due to the in investment decisions.
Measuring development impact.
and protracted
In 2015-16, crises
the Department approved had
a £735 yet
millionto reach aof CDC
recapitalisation similar
to impact of wind conditions on safe landing.
expand its business. Our November 2016 report Investing through CDC found We found that CDC had met the financial
level of maturity.
that the Department’s oversight of CDC had improved and that it had directed CDC
to address weaknesses identified by Parliament. The governance arrangements were The Department’s cost–benefit model for performance it agreed with the Department.
thorough, but should make explicit the Department’s role in investment decisions.
the project was particularly sensitive to two However, a clearer picture of actual development
We found that CDC had met the financial performance it agreed with the Depart-
ment. However, a clearer picture of actual development impact would help the assumptions – the number of tourists who will visit impact would help the Department to demonstrate
Department to demonstrate the value for money of its investment.
the island once the airport opens and the amount the value for money of its investment.
Since we reported, government has agreed a further investment of between £3.1
billion and £3.5 billion over the five‑year period between 2017 and 2021.
they will spend. The year in which the Department
Since we reported, government has agreed a
stops paying a subsidy, and the amount paid,
further investment of between £3.1 billion and
will depend on whether these assumptions are
£3.5 billion over the five‑year period between
exceeded or missed.
2017 and 2021.
Department for International Development
|
Departmental Overview 2018
11PART ONE
CONTENTS
The Department’s approach to tackling fraud 1/2
NEXT
The government’s commitment to spend 0.7% of gross national income on
international aid (£12.1 billion in 2015) has increased the Department’s budget by more
than a quarter since 2011. In addition, the 2015 Strategic Defence and Security Review PREVIOUS
committed the Department to spend at least 50% of its budget in fragile states
and regions (those areas perceived as most corrupt) at least until 2020.
LAST PAGE
The Department’s approach to tackling fraud VIEWED
These factors could potentially increase
The government’s commitmentthe risk0.7%
to spend of grossin
of fraud the Department’s
national in‑ budget.
come on international aid (£12.1 billion in 2015) has increased the Department’s
budget by more than a quarter since 2011. In addition, the 2015 Strategic Defence and
Security Review committed the Department to spend at least 50% of its
budget in fragile states and regions (those areas perceived as most corrupt)
at least until 2020.
These factors could potentially increase the risk of fraud in the Department’s
budget.
In February 2017 Inwe published
February Investigation
2017 we published Investigation into theDepartment
into the Department for International Development’s approach to tackling fraud which looked at how the Department
for International Development’s approach to tackling fraud which
managed the riskslookedto at
itshow expenditure
the Department managedand, where the risksrelevant,
to its expenditure compared its approach to that taken by the Foreign & Commonwealth Office and the British Council.
and, where relevant, compared its approach to that taken by the For‑
We found that: eign & Commonwealth Office and the British Council.
We found that:
the Department had changed its counter‑fraud strategy in response to previous
criticism by external scrutiny bodies, building the consideration of fraud risk into the
process that teams must follow when setting up programmes;
the number of allegations of fraud reported to the Department had
increased, as a result of its work to increase awareness of fraud and reporting require-
• • the number of • • •
ments among its staff and suppliers;
the Department the Department’s fraud detection of fraud is more annual gross losses
had changed its detection of fraud is more challenging where allegations
the Departmentofdoes
fraud
not caseload quadrupled challenging where the owing to fraud in
have direct control over all the funds it provides, as in the 55% of expendi-
counter‑fraud turestrategy
routed through multilateral bodies; and reported to the between 2010-11 Department does not 2015-16 were around
annual gross losses owing to fraud in 2015-16 were around 0.03%
in response to previous Department had and 2015-16 and it have direct control 0.03% (£3.2 million)
Department for International Development
(£3.2 million) of the Department’s budget. Since 2003, the Department has
criticism by external
recovered around two‑thirds, by value, of the reported fraud loss. as a result
increased, received 475 new over all the funds it of the Department’s
scrutiny bodies, building of its work to increase allegations during provides, as in the 55% budget. Since 2003,
the consideration of fraud awareness of fraud and the nine months to of expenditure routed the Department has
risk into the process that reporting requirements 31 December 2016 (see through multilateral recovered around
teams must follow when among its staff figure overleaf). There bodies; and two‑thirds, by value, of
setting up programmes; and suppliers; were few allegations the reported fraud loss.
of fraud reported in
some of the countries
|
ranking among
Departmental Overview 2018
the most corrupt;
12PART ONE
CONTENTS
The Department’s approach to tackling fraud 2/2
NEXT
The Department’s fraud caseload: 2010-11 to 2016-17
A diagram showing The Department’s fraud caseload: 2010-11 to 2016-17
The Department for International Development’s fraud caseload has quadrupled over the last five years PREVIOUS
Cases
500
LAST PAGE
VIEWED
475
450
429
400
401
374
350
300
250
249
236
200
174
150 166
142 145
Department for International Development
130 131
123
100 114
102 107
99
87 92
76
50 65
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Allegations received
Number of investigations raised in year
|
Departmental Overview 2018
Number of cases closed in year
Note
1 Figure for 2016-17 as at 31 December 2016; it does not represent a complete financial year.
Source: National Audit Office analysis of the Department for International Development’s fraud caseload data
13PART TWO
CONTENTS
Managing the Official Development Assistance target 1/2
Managing the Official Development Assistance target
NEXT
Official Development Assistance (ODA) is the amount of money a country spends on over-
seas aid. The (ODA)
Official Development Assistance is tothe
UK committed spendamount of money
0.7% of its national a way
income in this country
from 2013 spends
– which on
has it has achieved. While the Department for International Development spends the majority
overseas aid. The UK committed to spend 0.7% of its national income in this way from
of the UK’s ODA, its contribution relative to that of other government departments is declining.
2013 – which has it has achieved.
In our 2017 While
report the
ManagingDepartment for International
the Official Development AssistanceDevelopment
target – a PREVIOUS
report on progress we concluded that:
spends the majority of thetheUK’s
UK had ODA,
met the ODAits contribution relative
target for each year since to sources
2013 – with that ofotherother
than the government
departments is declining. Department contributing an increasing proportion of total ODA expenditure;
the Department had improved its own management of its ODA expenditure and had
LAST PAGE
provided support to other government departments which had seen their ODA expenditure increase; VIEWED
• responsibilities for the target were fragmented
across government;
• despite
In our 2017 report Managing government’s
the Official efforts
Development to coordinate
Assistance its – a report on progress we concluded that:
target
approach, we identified gaps in responsibility
and accountability. For example, no single part
of government had responsibility for monitoring
• the UK had met • the Department had • responsibilities • despite • departments had • departments were
the overall effectiveness and coherence of
the ODA target improved its own for the target government’s taken positive experiencing similar
ODA expenditure;
for each year management of its were fragmented efforts to steps to build challenges to those
since 2013 – with ODA expenditure and across government; coordinate its their capacity to the Department
• departments had taken positive steps to build
sources other than had provided support
their capacity to manage their larger ODA approach, we manage their larger for International
the Department to other
budgets; andgovernment identified gaps in ODA budgets; and Development faced in
contributing departments responsibility and 2013 (when its budget
an increasing • departments
which had were experiencing similar accountability. was increased).
proportion of total challenges to ODA
seen their those the Department for For example, For example, some
ODA expenditure; International Development
expenditure increase; faced in 2013 (when no single part departments spent
Department for International Development
its budget was increased). For example, some of government more than 50%
departments spent more than 50% of their budget had responsibility of their budget in
in the final quarter of the 2016 calendar year (see for monitoring the final quarter of
the figure overleaf); and some departments also the overall the 2016 calendar
struggled to spend their ODA budgets. effectiveness and year (see the figure
coherence of overleaf); and some
ODA expenditure; departments also
struggled to spend
|
their ODA budgets.
Departmental Overview 2018
14PART TWO
CONTENTS
Managing the Official Development Assistance target 2/2
Profile of 2016 Official Development Assistance expenditure in other government departments and cross-government funds
NEXT
In 2016, four departments and one cross-government fund spent more than half their calendar year ODA budget in the last quarter of the calendar year
PREVIOUS
11
Department of Energy &
98
Climate Change Calendar year 2016
1 LAST PAGE
Quarter 1 VIEWED
Prosperity Fund 5 30 65 Quarter 2
Quarter 3
Department for Environment, Quarter 4
11 8 18 64
Food & Rural Affairs
Department of Health 9 12 22 57
Department for Culture,
14 16 13 57
Media & Sport
Conflict Stability and
26 11 14 48
Security Fund
Department for Business,
25 21 22 33
Innovation & Skills
Department for International Development
HM Revenue & Customs 6 27 34 32
A bar chart showing the profile of 2016
Official Development Assistance expenditure
Foreign &
30 19 20 30 in other government departments and cross-
Commonwealth Office
government funds
Home Office 20 32 22 26
|
Ministry of Defence 51 13 30 6
Departmental Overview 2018
0 10 20 30 40 50 60 70 80 90 100
Percentage
Notes
1 Other departments with ODA expenditure in 2016: HM Treasury, Department for Work and Pensions, Department for Education, and Office for National Statistics.
They are not included as their ODA expenditure did not include any programme expenditure.
2 Some figures do not sum due to rounding.
Source: National Audit Office analysis of departments’ actual ODA expenditure in 2016 as reported to the Department for International Development in December 2016 to January 2017 15PART THREE
CONTENTS
Promoting international development 1/2
NEXT
In 2011, the Department launched the International Citizen Service (ICS) to provide
volunteer placements for 18- to 25-year-olds. ICS brings together young people from the
UK and developing countries to volunteer together in some of the poorest communities PREVIOUS
in the world. It seeks to make a positive contribution to poverty reduction and sustainable
development in the host country, and to volunteers’ personal and social development;
and build volunteers’ skills to better understand international development. LAST PAGE
VIEWED
The Department committed a total of £173 million to ICS between 2011 and 2019.
It contracts with Voluntary Services Overseas (VSO) to deliver ICS.
Promoting international development
In 2011, the Department launched the International Citizen Service (ICS) to provide volunteer placements for 18-
In our 2017 report International CitizenICSService
to 25-year-olds. brings togetherwe
youngconcluded that
people from the UK and thecountries
developing programme had had some successes – it was over-subscribed and was meeting two of
to volunteer together
in some of the poorest communities in the world. It seeks to make a positive contribution to poverty reduction
its three objectives. But the andDepartment had missed some of the programme’s targets for diversity and had not consistently demonstrated development
sustainable development in the host country, and to volunteers’ personal and social development; and build
impact – its third objective forvolunteers’
the programme.
skills to better understand international development.
The Department committed a total of £173 million to ICS between 2011 and 2019. It contracts with Voluntary
Services Overseas (VSO) to deliver ICS.
Our more detailed conclusionsIn our included:
2017 report International Citizen Service we concluded that the programme had had some successes – it
was over-subscribed and was meeting two of its three objectives. But the Department had missed some of the
programme’s targets for diversity and had not consistently demonstrated development
impact – its third objective for the programme.
Our more detailed conclusions included:
• comparisons of • theofprogramme’s
comparisons
•
the ICS’s cost with similar programmes presented a ICS
some comparable programmes, and more than others;
had–met
mixed picture
•it was less expensive than
•
the Department’s the Department • the Department
the ICS’s cost development its targets for performance had not achieved and VSO
with similar
• the programme’s development impact was unclear;
impact was unclear; the number of against its its ambition that recognised and
Department for International Development
programmes • UK applicants;
ICS had met its targets for the number of diversity targets ICS UK volunteers looked to manage
presented a mixed UK applicants; for applicants were broadly the safeguarding
picture – it was was variable representative and security risks
less expensive than • ICS had met its targets for the number of (see overleaf); of the UK associated with
some comparable UK applicants; population; and the programme.
programmes, and
more than others;
• the Department’s performance against its diversity
targets for applicants was variable (see overleaf);
•
|
the Department had not achieved its ambition that ICS
Departmental Overview 2018
UK volunteers were broadly representative of the UK
population; and
• the Department and VSO recognised and looked
to manage the safeguarding and security risks
associated with the programme.
16PART THREE
CONTENTS
Promoting international development 2/2
A table showing Ethnicity: Asian – performance against target, 2012 to 2017. Another table shjowing Ethnicity: black – performance against target, 2012 to
2017. A bar chart showing Disability: performance against target, 2012 to 2017. A table showing Regional diversity of ICS applicants compared to targets,
2012 to 2017.
Ethnicity: black – performance against target, 2012 to 2017
NEXT
Ethnicity: Asian – performance against target, 2012 to 2017
ICS has met targets for Asian applicants in the three years when the target was 7%, but missed the target The percentage of black applicants has been more than double the 3% target each year
in two of the three years since the target was increased to 10% PREVIOUS
Year Target Applicants Applicants Participants Percentage of black
Year Target Applicants Applicants Participants Percentage of Asian participants versus target1 participants compared
versus target1 compared with Asian applicants with black applicants
(%) (%) (%) (%) (%) (%) (%) (%) LAST PAGE
VIEWED
2012 7 7.6 6.6 Lower 2012 3 7.6 7.7 Higher
2013 7 7.6 6.3 Lower 2013 3 6.5 5.1 Lower
2014 7 9.1 6.7 Lower 2014 3 8.1 6.7 Lower
2015 10 8.5 7.2 Lower 2015 3 7.9 6.6 Lower
2016 10 10.1 7.4 Lower 2016 3 7.6 7.0 Lower
20171 10 9.5 8.8 Lower 20171 3 7.4 7.0 Lower
Notes
Notes
1 Data for 2017 are for the ten months from January to October 2017.
1 Data for 2017 are for the five months from January to May 2017.
2 Green rating = target met or exceeded; red rating = below target.
2 Green rating = target met or exceeded; red rating = below target.
3 Our analysis excludes respondents who did not answer or who chose the option “Prefer not to say”.
3 Our analysis excludes respondents who did not answer or who chose the option “Prefer not to say”.
Source: National Audit Office analysis of International Citizen Service applicant and participant data
Source: National Audit Office analysis of International Citizen Service applicant and participant data
Disability: performance against target, 2012 to 2017 Regional diversity of ICS applicants compared to targets, 2012 to 2017
ICS consistently exceeds its target for the percentage of total applicants from London and the South West.
Taking into account tolerance levels, ICS has met its target for the number of applicants declaring a disability in
This means that targets for applicants from other regions are often not met
2012 and for the first 10 months of 2017
Regions Target (%) 2012 2013 2014 2015 2016 2017
Percentage of applicants/participants
South East 13
Department for International Development
4.5 14 15 14 14 13 14
4.0 London 12 21 21 20 18 19 17
3.5
4.0
North West 11 10 11 11 11 12 12
3.0
East of England 9 8 9 8 8 9 9
2.5
2.0 2.4 West Midlands 9 7 7 8 8 8 8
2.1 2.1 2.2
1.5 1.7 1.6 1.8 1.7 Yorkshire and the Humber 9 9 7 7 7 7 8
1.0
1.5
1.2 1.2 East Midlands 8 7 6 6 6 6 6
0.5
Scotland 8 6 6 7 7 7 7
0
2012 2013 2014 2015 2016 2017 South West 8 9 10 9 9 9 8
Wales 5
|
Percentage of applicants declaring a disability Percentage of participants declaring a disability 4 3 4 5 4 5
Departmental Overview 2018
North East 4 3 3 4 3 4 4
Target percentage of applicants declaring a disability
Northern Ireland 3 2 2 2 3 2 2
Notes
1 Data for 2017 are for the ten months to October 2017. Met or exceeded target Did not meet target
2 Our analysis excludes respondents who did not answer or chose the option “Prefer not to say”. Note
1 Data for 2017 are for the ten months from January to October 2017.
Source: National Audit Office analysis of International Citizen Service applicant and participant data
Source: National Audit Office analysis of International Citizen Service applicant and participant data
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