Background

Following an outbreak of ethnic tensions in 1999 and a decline in law and order, the Solomon Islands economy began to collapse. By early 2003 Solomon Islands was displaying many of the characteristics of a failed state.

In April 2003 the then Solomon Islands Prime Minister wrote to the Australian Prime Minister requesting assistance. With the endorsement of the Pacific Islands Forum and the Solomon Islands Parliament, the Regional Assistance Mission to Solomon Islands (RAMSI) was deployed on 24 July 2003.

RAMSI is a partnership between the Government and people of Solomon Islands and contributing countries of the Pacific region. It is a long-term exercise aimed at helping create the conditions necessary for a return to stability, peace and a growing economy. RAMSI's early priorities were to restore law and order and stabilise Solomon Islands Government finances. As this was being achieved, RAMSI increasingly focused on longer-term issues such as governance and economic reforms, rebuilding the police force, judicial institutions, correctional institutions and the machinery of government.

A critical aspect of this assistance involves building the capacity of Solomon Islands individuals and institutions to help make improvements sustainable. This is expected to be the long-term focus of RAMSI.

Australia provides leadership for the mission. The Department of Foreign Affairs and Trade (DFAT) is the lead agency, with responsibility for coordinating Australian Government agency input.

A number of other Australian Government agencies are involved. Most non-operational funding has been appropriated to the Australian Agency for International Development (AusAID), which is an administratively autonomous agency within the Foreign Affairs and Trade portfolio. AusAID leads the development cooperation effort and engages other agencies and contractors to deliver programs. The Australian Federal Police and Australian Defence Force contribute and provide operational leadership to the mission.

Over the four years from 2005–06, the Australian Government has allocated $840.5 million for RAMSI.

RAMSI's overall goal is a peaceful, well-governed and prosperous Solomon Islands. There are three programs or ‘pillars' of assistance being delivered by RAMSI in support of this goal, viz: Law and Justice, Machinery of Government, and Economic Governance.

The Australian Government has described RAMSI as not being time-bound. That is, the end of the deployment will be signified by the successful completion of its various sub-program tasks/outcomes.

The Australian Government has emphasised that in return for this support it expects governance standards and economic management to improve, and endemic corruption to be addressed. It has stressed that RAMSI is an integrated package of initiatives. That is, elements addressing corruption and governance cannot be removed from the package. Without those elements the Government expects that the aid will be ineffective.

The relationship between the Governments of Australia and Solomon Islands is important to the success of RAMSI. Given RAMSI's long-term nature, the strength of the relationship is bound to fluctuate from time to time, providing ongoing challenges to RAMSI. While the Australian Government has stated an ongoing commitment to RAMSI, it has also acknowledged the possibility that RAMSI may be forced to withdraw at some point in the future.

The audit

The objective of the audit was to assess the coordination of Australian Government assistance to Solomon Islands through RAMSI, including the establishment of objectives and an outcomes monitoring framework. In particular, the audit examined arrangements for: coordination between Australian Government agencies; strategic planning and risk management; measuring the effectiveness of RAMSI; and reporting to RAMSI's Australian stakeholders.

The audit focused on Australian Government agency involvement in RAMSI. It did not examine contributions by other Pacific countries, or State Governments. Nor did it review the administration of Solomon Islands Government agencies. The audit focused on RAMSI-wide issues, as opposed to the numerous activities of contributing agencies.

The audit looked at whether a sound framework is being established to measure outcomes.

Overall audit conclusion

The Regional Assistance Mission to Solomon Islands (RAMSI) is a complex, multiyear initiative, involving input from a range of Australian Government agencies and regional partners. Significant progress has been achieved over the first two to three years of RAMSI's deployment. However, the task has become more difficult as the focus has shifted from restoring law and order and stabilising government finances, to capacity building. Over the last year this has been further complicated by strained relations between the Governments of Australia and Solomon Islands.

Notwithstanding these challenges and complexities, the ANAO concluded that DFAT and AusAID have put in place arrangements that enable the effective coordination of Australian Government assistance to Solomon Islands. Program objectives have been established and significant progress has been made in the development of an outcomes monitoring framework. As the framework is refined, it will be important to shift the focus from measuring outputs to outcomes, to better assess the impact that outputs are having on the Solomon Islands community.

Coordination arrangements between Australian Government agencies are sound. An evolutionary approach to strategic planning has been employed by agencies, reflecting the need to react flexibly to emerging circumstances. A strategic approach to risk assessment has been adopted, reflecting important elements of good practice. Some elements need strengthening, such as ensuring that treatments are clear and identify indicative timing. Arrangements have been established which enable regular whole-of-government reporting on RAMSI to the Australian Government. The inclusion of a limited number of key performance indicators and targets, and consistently reporting against them, would strengthen this arrangement.

Key Findings

Coordinating Australian Government assistance to RAMSI (Chapter 2)

A large, complex and evolving program such as RAMSI, involving contributions from a range of Pacific Island countries and Australian Government agencies, requires effective coordination. This involves clear and well understood roles and responsibilities, and clear communication and information sharing arrangements.

The ANAO found that the top level RAMSI participants (the RAMSI ‘Principals'¹) understand and observe their respective roles and responsibilities. Although there have been occasional tensions (as could be expected in such a complex operational setting) the relationships are generally positive and mutually supportive.

At the lower level, there is a need to clarify program staff understanding of RAMSI's structure and the roles and responsibilities of the RAMSI Principals and Program Directors. This includes clarifying the respective roles and responsibilities of the Office of the Special Coordinator and the Australian High Commission. DFAT and AusAID are considering options to improve briefings for arriving civilians.

Overall, relationships between contributing agencies are generally positive and mutually supportive, with agencies generally demonstrating a collegiate and collaborative approach. However, from time to time issues have emerged. One issue, relating to inconsistencies in the terms and conditions of various RAMSI deployees, is causing some tension between agencies and would benefit from further consideration against appropriate remuneration benchmarks. There is also a need to finalise some formal agreements between AusAID and contributing Australian Government agencies.

DFAT and AusAID have put in place a range of formal mechanisms to help Australian Government agencies share information, most notably a weekly Interdepartmental Committee meeting. This involves key RAMSI participants providing a high-level, useful update of current developments to Canberra and New Zealand agency representatives via telephone hook-up. However, there is a recognised need to strengthen lower level information sharing and cross-program coordination.

A range of mechanisms is used to facilitate liaison with the Solomon Islands Government, including formal forums which focus on strategic issues. While the forums have had varying levels of success to date, they have the potential to be an important consultation mechanism. Regional liaison arrangements appear to be satisfactory.

Strategic planning and risk management across RAMSI (Chapter 3)

Planning allows program objectives to be clarified, strategies to be developed and measures agreed to track progress in delivering outputs.

The ANAO found that the broad areas of assistance identified at the time of the July 2003 intervention have remained appropriate and now comprise the three RAMSI programs or ‘pillars', viz: Law and Justice; Machinery of Government; and Economic Governance.

RAMSI's relatively rapid roll-out and its initial short-term focus have meant that an evolutionary approach to identifying and planning some sub-programs has been employed. This approach was reasonable in view of the need for RAMSI to be able to react flexibly to emerging circumstances, and to identify longer-term program priorities in consultation with the Solomon Islands Government.

As the focus has shifted from restoring law and order and stabilising government finances, to wider state-building and development activities, the evolving RAMSI program elements have been documented in a number of key planning papers, effectively constituting RAMSI's strategic plan. At the time of the audit, a Medium Term Strategy (2007 to 2012) was being developed. This has the potential to be a useful strategic planning and management tool for RAMSI.

While the delivery of such a large and complex program overseas is inherently risky, it is not possible to eliminate all of the risk. It does, however, need to be managed. To this end, a RAMSI-wide strategic risk assessment matrix has been prepared, reflecting important elements of good practice risk management. However, some elements need strengthening, such as ensuring that treatments are clear and identify indicative timing.

During the audit the ANAO became aware of some confusion relating to aspects of RAMSI's crisis management during the civil unrest and riots that followed the April 2006 election in Solomon Islands. In particular, some RAMSI program staff were left out of the information loop during this period. The management and oversight of security for RAMSI civilians needs to be strengthened by ensuring that lessons from such security incidents/crises are formally captured.

DFAT and AusAID advised that, since the time of audit fieldwork, considerable work has been undertaken to improve civilian security.

Measuring RAMSI's performance (Chapter 4)

RAMSI's program complexity, multiyear nature and range of contributing Australian Government agencies and regional partners means that putting arrangements in place to measure its success will necessarily be complex, and challenging.

RAMSI established a Performance Framework in 2005 and has developed or is developing a range of initiatives to help measure performance against that Framework. The Framework identifies a single overarching goal for RAMSI and objectives for each of its three programs. These initiatives are the result of a substantial and sustained administrative effort from 2005, and represent significant progress in establishing a useful and reasonably comprehensive performance measurement system for individual RAMSI programs and for RAMSI as a whole.

The Framework contains a mix of output and outcome indicators, albeit with a heavy focus on the former. As the Framework is refined, it will be important for the Office of the Special Coordinator and program areas to shift the focus from measuring outputs to measuring outcomes, to better assess the impact that outputs are having on the Solomon Islands community.

The Framework also needs to be strengthened by including more targets, benchmarks or activity levels against performance indicators, where possible, to enable future results to be interpreted against expectations.

The production of the first Annual Performance Report 2005/2006 against the Framework was challenging, particularly in terms of timing and product quality. Weaknesses with this first report were readily acknowledged by DFAT and AusAID. To facilitate the preparation of the next report, it will be important to allow adequate time for the review team to familiarise itself with the various program elements, and to provide adequate direction and supervision while the review takes place.

Reporting to RAMSI's Australian stakeholders (Chapter 5)

A fundamental aspect of accountability is the obligation to provide sufficient information to internal and external stakeholders to enable well-informed conclusions about progress and performance to be drawn.

DFAT has put in place arrangements to provide high-level updates of RAMSI's progress to the management of participating agencies. These provide an important means by which agency management is kept abreast of high-level progress and emerging issues across RAMSI and individual programs.

The key arrangement for reporting progress to Ministers involves the preparation of regular briefs for the National Security Committee of Cabinet. The briefs facilitate regular, high-level, whole-of-government updates on developments, challenges and the current outlook for RAMSI. They are prepared in a collaborative manner, with input being provided by key RAMSI agencies.

On the whole, the briefs are focused, well constructed and make high-level recommendations for formal consideration and decision. However, the inclusion of a limited number of key performance indicators and targets, and consistently reporting against them, would strengthen the briefs.

Annual reports and Portfolio Budget Statements are the key mechanisms by which agencies are accountable through the Government to the Parliament for the efficiency, effectiveness and economy with which they manage the resources they administer.

However, the ANAO found that it is not possible to readily identify from these documents the extent of Australian Government agency involvement in the RAMSI effort. This is particularly the case in respect of the resources deployed by those agencies. Given that RAMSI is a whole-of-government initiative, involving a substantial commitment over a number of years, the ANAO suggests that DFAT, as the coordinating agency, strengthen public accountability by collecting and publishing summary information about Australian Government agency involvement in RAMSI.

Recommendations and agency response

The ANAO made five recommendations aimed at improving the arrangements for coordinating, measuring and reporting on Australian Government agency assistance to Solomon Islands. All are agreed.

DFAT's summary response to the audit is as follows:

DFAT welcomes the performance audit as a comprehensive and detailed review of coordination arrangements for RAMSI, a large, complex and innovative mission operating in challenging circumstances. The audit is a positive contribution to RAMSI's governance. I welcome in particular the findings of the report which acknowledge the immense amount of work undertaken by the Department and the Office of the Special Coordinator (OSC) in ensuring that Regional Assistance Mission to Solomon Islands (RAMSI) processes are as transparent, accountable and effective as possible. It is encouraging that the report concludes that DFAT and AusAID have put in place arrangements that enable the effective coordination of Australian Government assistance to Solomon Islands, and that program objectives have been established and significant progress has been made in the development of an outcomes monitoring framework.

AusAID's summary response to the audit is as follows:

AusAID welcomes the performance audit as a thorough assessment of Australian Government agency involvement in RAMSI. In particular, AusAID supports the findings and conclusions as outlined in the report, which highlight the complex nature of RAMSI, and the considerable work that is being done by DFAT and AusAID in ensuring the effective coordination of Australian Government assistance to Solomon Islands through RAMSI.
AusAID broadly agrees with the recommendations as outlined in the report, and in consultation with DFAT and the Office of the Special Coordinator (OSC), is ensuring that necessary processes are in place to address them. RAMSI is a complex multiyear initiative that is constantly evolving to changing circumstances. AusAID will continue to contribute to finding and implementing effective solutions to meet these changing needs.

Footnotes

1 The RAMSI Principals comprise the Special Coordinator, the Commanders of the Participating Police Force and the Participating Armed Forces, the Development Coordinator, the Deputy Special Coordinator and the Assistant Special Coordinator.