MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF AUSTRALIA, ACTING THROUGH THE AUSTRALIAN AGENCY FOR INTERNATIONAL DEVELOPMENT (AUSAID) AND THE SOUTH PACIFIC BOARD FOR EDUCATIONAL ASSESSMENT (SPBEA)

(25 February 2003)

ENTRY INTO FORCE: 1 JANUARY 2003 - 31 DECEMBER 2005

General

1. This Memorandum of Understanding (MOU) sets out the understandings of the Government of Australia (GOA), acting through the Australian Agency for International Development (AusAID), and the South Pacific Board for Educational Assessment (SPBEA), concerning their respective responsibilities in relation to the granting of funds by the GOA to SPBEA.

Definitions

2. For the purposes of this MOU:

(a) “Grant” means the funds provided by Australia to SPBEA pursuant to this MOU;

(b) “Australia's Assessed Contribution” (AAC) means the annual membership contribution paid by Australia to SPBEA, as determined at SPBEA’s annual general meeting;

(c) “Australia's Program Funding” (APF) means those annual contributions for priority programs for which SPBEA requests and AusAID approves funding over and above Australia’s Assessed Contribution.

Commencement Date and Term

3. This MOU will be deemed to have commenced on 1 January 2003 and subject to paragraph 11.1 will terminate on 31 December 2005.
Responsibilities of the South Pacific Board for Educational Assessment

4.1 SPBEA will submit Strategic Program Plans (SPP) and/or updates during the year, which will form the basis for annual program discussions and subsequent funding levels.  The SPPs will be developed based on the outline at Annex 1 to Schedule 2.

4.2 SPBEA will undertake to disburse the funds provided by AusAID in accordance with the terms and conditions of this MOU.

4.3 SPBEA will implement the Programs to the satisfaction of the GOA and in a manner consistent with the decisions of the Board of SPBEA and will take all reasonable steps to keep expenses to a minimum, consistent with sound administrative and financial practices.

4.4 SPBEA will use the Grant and any interest earned thereon for the sole purpose of approved Programs.

4.5 SPBEA will not incur expenditure or commitments in excess of the Financial Limitation set out in Schedule 1 to this MOU.

4.6 SPBEA will advise the GOA in writing of the proposed APF prior to the annual programming consultations.

Responsibilities of the GOA

5.1 Subject to paragraph 5.2, the GOA will make payments to SPBEA in the amounts and at the times specified in Schedule 1 to this MOU.  

5.2 The payment will be subject to:

(a) the normal appropriation for each financial year of funds by the Australian Parliament for Australia's Overseas Aid Program; 

(b) the terms and conditions of this MOU; and

(c) AusAID's assessment of SPBEA’s performance and management capacity.

5.3 In addition to the GOA triennium funding covered by this MOU, AusAID may allocate additional funds to SPBEA to augment its support to priority programs in accordance with regional priorities and criteria such as the performance of individual programmes.  Such supplementary allocations would be covered by an exchange of letters under this Memorandum.

5.4 AusAID may also allocate additional funds to SPBEA to implement specific projects in accordance with regional priorities.  Such projects would be proposed and designed by AusAID and/or SPBEA, subject to normal AusAID project preparation and management procedures and covered by an exchange of letters under this Memorandum.
Financial Records

6.1 SPBEA will maintain a sound financial system capable of verifying all financial acquittal statements.

6.2 SPBEA will, in relation to the GOA's contributions, keep proper and detailed accounts including clear audit trails and records in relation to expenditure of those contributions.

6.3 SPBEA will afford adequate facilities for audit and inspection of such accounts and records by AusAID and its authorised representatives at all reasonable times and will allow copies and extracts to be taken.

6.4 SPBEA will preserve such accounts and records for a period of six (6) years following the date of the expenditure of the relevant GOA contributions.

6.5 In respect of Programs funded with APF, SPBEA will submit six-monthly financial acquittal statements in Australian dollars and Fiji dollar equivalent, certified by the appropriate SPBEA Finance Manager confirming that funds have been properly applied for the purpose they were given.

6.6 To assist AusAID to assess SPBEA's performance and for accountability purposes, SPBEA will forward to AusAID copies of its Annual Report and Financial Statements and Audit Report as soon as they become available.

Reporting

7.1 SPBEA will provide the GOA with six-monthly progress reports in December and June for all Australian funded programs.  Such reporting will cover overall progress against established outcomes and performance.  This is in addition to, and will be accompanied by, the six-monthly financial acquittal statements referred to in paragraph 6.5.  It is also in addition to any project specific reporting that may be required under Exchanges of Letters.
Monitoring and Evaluation

8.1 Australia will be represented by AusAID at SPBEA's Board meetings. 

8.2 SPBEA programs are subject to review by SPBEA Board.  That body or the Director of SPBEA may determine whether a particular program should be subject to a detailed external evaluation.  SPBEA will advise AusAID of its program of reviews and evaluations and may invite AusAID to participate in such reviews and evaluations.  SPBEA will provide AusAID with copies of all such review and evaluation reports.

8.3 AusAID reserves the right to conduct its own evaluation of SPBEA in the context of its Multilateral Assessment Framework.  AusAID will, in evaluating SPBEA and on-going or proposed activities, hold discussions with SPBEA at mutually convenient times as the need arises.

8.4 Assessments under 8.2 and 8.3 will be taken into consideration in annual program discussions.

Communication and Coordination of Activities

9.1 SPBEA will inform AusAID of programs and projects that are supported by other donors, in particular, in those sectors for which the use of Australian resources (APF or project funds) is proposed. 

9.2 Where possible, AusAID will advise SPBEA of planned GOA supported activities in the region that are likely to be of relevance to the work programs of SPBEA.

Amendments and Documentation

10.1 This MOU may be amended at any time by an exchange of letters between the GOA and SPBEA.

10.2 This MOU constitutes the entire documentation between GOA and SPBEA concerning the Grant and related responsibilities, and any written or oral agreement, arrangement or understanding made or entered by them prior to the commencement of this MOU will not in any way be read or incorporated into it.

10.3 The Schedules and Annexes to this MOU form an integral part of it.

Termination

11.1 Either the GOA or SPBEA may terminate this MOU at any time by giving written notice to the other of its intention to do so, subject to mutual satisfaction regarding the completion of existing commitments.

11.2 Upon termination of this MOU, the GOA will be under no commitment to provide further APF to SPBEA and will be entitled to recover, subject to the provisions in 11.1, the unexpended portion of these contributions.

Notices

12.1 Any notice, document, or other communication to be given or served by the GOA on the SPBEA under this MOU will, unless the contrary intention appears, be deemed to have been duly given or served if it is in writing and is signed on behalf of the GOA and is:

(a)	Delivered by hand to SPBEA; or

(b)	Sent to: The Director
South Pacific Board for Educational Assessment
P O Box 2083
Government Buildings 
Suva, Fiji

12.2 Any notice, document, or other communication to be given or served by SPBEA on the GOA under this MOU will, unless the contrary intention appears, be deemed to have been duly given or served if it is in writing and is signed on behalf of SPBEA and is:

(a)	Delivered by hand to AusAID; or

(b)	Sent to:	Country Program Manager 
Australian Agency for International Development (AusAID)
PAC II Section
62 Northbourne Avenue
Canberra, ACT 2601, AUSTRALIA

Signed in ........................ on  ......................... day of .....................2003 

For the Government of Australia

HE Ms Susan Boyd
Australian High Commissioner to Fiji, Tuvalu and Nauru	For the South Pacific Board for Educational Asessment (SPBEA)

Dr Visesio Pongi
Director	

SCHEDULE 1

PAYMENT OF THE GRANT BY AUSTRALIA TO THE SOUTH PACIFIC BOARD FOR EDUCATIONAL ASSESSMENT

1. The financial limitation of this MOU is up to $A 900,000 over the three years 2003-2005.

2. GOA will contribute Australia's Assessed Contribution (AAC) and Australia's Program Funding (APF) as a single annual payment of $A 300,000.  This will normally be paid in January of each year of the triennium.  The first call on this contribution will be the AAC.  The balance of the GOA contribution will be allocated to the APF.  It will be the responsibility of SPBEA to allocate the available funds to the programs specified below. 

3. GOA will provide Annual Program Funding to SPBEA for the School-Based Assessment program, and for the Design Technology in Schools program.  It should be noted that funds amounting to $F 28,700 are already held by SPBEA in the form of carryover funds from past support for the Design Technology Program.  These funds will be applied to the Design Technology program in 2003.   

4. SPBEA will acquit the APF by the provision of narrative and financial reports at six-monthly intervals.  Such reporting will cover overall progress against established outcomes and performance indicators. 

SCHEDULE 2

AUSTRALIA’S PROGRAM FUNDING

1. Australia's Program Funding to SPBEA is provided for priority programs established in consultation with SPBEA.  The contribution is subject to the normal appropriation for each financial year of funds by the Australian Parliament for Australia's Overseas Aid Program.

2. SPBEA will convey to AusAID its program funding submission prior to the annual consultations.  The submission will be supported by Strategic Plans for the programmes for which SPBEA is seeking support.  Strategic Plans are expected to follow SPBEA’s standard for such plans and should have the endorsement of SPBEA’s Governing Board. A pro-forma outline is attached as Annex 1 to this Schedule.

3 Allocations to individual programmes will be decided at annual consultations between AusAID and SPBEA.  It is not intended that AusAID program funds be directed to or identified with specific staff positions.

4. AusAID and SPBEA will resolve any differences in the assessment of regional priorities or the appropriateness of proposed intervention strategies through consultative processes. 

5 Supplementary program contributions may be provided on an annual basis in recognition of particular regional needs and performance of programmes.  AusAID and SPBEA would jointly determine the allocation of any such additional funds. 

Annex 1 to Schedule 2

Outline of Strategic Programme Plans

 
1.  Introduction to the Programme and its Strategic Plan	Situates the programme organisationally within SPBEA, explains what the programme does and the purpose of the Plan i.e. to give the programme a measurable results focus, and notes that it was written in consultation with stakeholders. 	
2.  Pacific Context and Challenges, 	Identifies the challenges that the sector faces and defines them in the Pacific regional context 	
3.  The SPBEA Response	Says how the programme is addressing these challenges, including emerging challenges, referring to lessons learned from programme experience	
4.  Priorities	Gives the reader a sense of what is most important for the programme.  Lists the top three or four priorities only.	
5.  Mandate	Sources the programme’s authority to act and sets out the role of SPBEA Board and any subsidiary meetings. 	
6.  Goal and Objectives	The Goal is the long-term impact of the programme.  Should refer to the regional or national objectives to which the programme will contribute.
The Objectives are the planned set of results, and the consequent change in circumstances, that should lead to the achievement of the Goal. 	
7.  Outputs, Activities and Performance Indicators by Objective
Objective 1
Objective 2 
etc	This is the largest section.  It groups Outputs, Activities and Performance Indicators under the relevant Objective. 
Outputs are the direct, measurable results of the activities undertaken in order to meet the Objectives. They should be concrete and deliverable.  
Activities are the practical tasks carried out to produce the planned outputs
Performance Indicators measure the extent to which you are producing the results you have planned for at each level (Objective, Output, Activity)	
8.  Reporting, Monitoring and Evaluation	Briefly describes the programme’s reporting, monitoring and evaluation cycle (annual progress reports to SPBEA Board and donors, monitoring by Board, technical meetings, evaluation by independent review).	
9.  Partnerships and Resources	Describes the programme’s key links with partners (eg. PICTs, other CROP agencies, international organisations and donors) as well as its staffing, assets and financing (i.e. its human, physical and financial resources).	
10.  Logical Framework Matrix	Summary, in matrix format, of the results-based framework above