5 Examination of expenditure and
Public Service Agreements
34. As in previous years, the overall aim of
our activities in this Session was to assess DFID's performance
on the basis of the targets set under its Public Service Agreements
(PSAs). DFID's PSA targets are largely based on the Millennium
Development Goals, which have the overall aim of poverty reduction.
DFID leads on delivery of PSA 29: reduce poverty in poorer
countries through quicker progress towards the MDGs. Its main
delivery partners for this PSA are HM Treasury, the Foreign and
Commonwealth Office (FCO), the Department for Energy and Climate
Change (DECC) and the Department for Environment, Food and Rural
Affairs. DFID is a delivery partner on PSA 27 and PSA 30. PSA
27 is to: lead the global effort to avoid dangerous climate
change (led by DECC). PSA 30 is to: reduce the impact
of conflict through enhanced UK and international efforts
(led by the FCO).
35. We have continued our practice of conducting
an inquiry into DFID's Annual Report. Our inquiry into the 2008
Annual Report included an assessment of the UK's contribution
to some of the Millennium Development Goals which are not on track
to be achieved by 2015. We have also taken a keen interest during
this Parliament in how DFID measures the impact of its expenditure
and we commented in our Report on the work of the newly established
Independent Advisory Committee on Development Impact and DFID's
own Evaluation Department. [20]
36. A second recurring theme in our annual examination
of the Department's performance has been the difficulty the Department
faces in balancing a rising budget against the requirement to
make efficiency savings, including staff reductions. This year
we noted the Permanent Secretary's frankness in admitting that
her staff were "coping, but struggling" and cautioned
that it would be perverse if administrative savings meant that
the Department was spending its budget less effectively. We returned
to this issue in our examination of the 2009 Annual Report (see
below).
37. DFID's Annual Report 2009 also included,
for the first time, the Resource Accounts for the preceding financial
year. As we have mentioned, DFID also published a new White Paper
in July 2009, and we decided to include an assessment of its main
policy proposals in our examination of the Annual Report.[21]
We have arranged to hold evidence sessions early in the new parliamentary
Session with the DFID Permanent Secretary and the Secretary of
State. In a new departure, the National Audit Office has assisted
with this inquiry, including the preparation of a brief on DFID's
performance in 2008-09.[22]
We have valued this additional support for our work.
20 Second Report of Session 2008-09, DFID Annual
Report 2008, HC 220-I Back
21
DFID, Eliminating World Poverty: Building our Common Future,
July 2009 Back
22
NAO, Performance of the Department for International Development
2008-09, November 2009 Back
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