Developing, Appraising and Approving an Activity Design

Developing, Appraising and Approving an Activity Design Guideline Last updated: 22 September 2016 Approver: PDLT Contents Overview... 2 Drafting Terms of Reference... 3 Terms of Reference drafted by MFAT... 3 Terms of Reference drafted by the partner... 3 Approving the Terms of Reference... 3 Convening an Activity Design Team... 4 Identifying the design team... 4 Contracting the design team... 4 Briefing the design team... 4 Developing an Activity Document Design Document... 5 Content of an Activity Design Document... 5 Developing a Results Framework... 5 About Results Diagrams... 6 Example of Activity and input table format... 7 About Results Measurement Tables... 9 About Monitoring and Evaluation Workplans... 11 About Transition or Exit Planning... 12 Appraising an Activity Design... 13 Approving a Design... 13 Appendix A: Developing a Results Diagram... 14 Steps... 14 Results Diagram Checklist... 15 Example Results Diagram: Business Mentoring Programme... 16 Results Diagram: Activities and Input Table... 17 Appendix B: Developing a Results Measurement Table... 18 Steps... 18 Results Measurement Table Design Checklist... 19 Results Measurement Table Format: Example... 20 Results Measurement Table: Example... 21 Appendix C: Developing a Monitoring and Evaluation Workplan... 24 Steps... 24 Monitoring and Evaluation Workplan Design Checklist... 25 Example: Monitoring and Evaluation Workplan Format... 26 Example: Monitoring and Evaluation Workplan... 27 Appendix D: List of Direct Results Indicators... 30 Appendix E: Transition or Exit Planning Checklist... 32 Developing, Appraising and Approving an Activity Design Page 1 of 32

Overview The Activity design process is intended to deliver a robust, highquality Activity design for which approval is received to proceed to implement the Activity. The Outcome of the Design process is a decision on whether or not to implement an Activity. Prerequisite Activity design can proceed once a concept has been approved and a financial authority for design (PAA) issued, or once MFAT has approved transition to a new, follow-up Activity. Note: If the first knowledge MFAT has of a proposed Activity is when we receive a completed design from a partner, then the next step is to appraise the design (see the process Appraise an Activity Design). Where to start The next step in MFAT s activity design process is to prepare terms of reference for the design. Main steps The main steps in Activity design are: 1. MFAT and/or partner/s draft terms of reference. 2. MFAT obtains financial authority to design the Activity. 3. MFAT and/or partner/s identify, contracts and briefs an Activity design team. 4. The Activity design team drafts the Activity Design Document, which includes developing a results framework. 5. MFAT (and partner/s) appraise the design. 6. MFAT (and partner/s) approve the design. 7. MFAT obtains financial authority to implement the Activity. 8. MFAT finalises contractual arrangements for implementation. Developing, Appraising and Approving an Activity Design Page 2 of 32

Drafting Terms of Reference Terms of reference can be drafted by MFAT or a partner. Terms of Reference drafted by MFAT When the terms of reference are drafted by MFAT, the responsibility for drafting the terms of reference sits with the activity manager. The activity manager should consult internally and externally, and involve specialists as necessary in preparing the terms of reference. It is mandatory for the activity manager to use MFAT s Templates for Terms of Reference for Assignments (over 100k) or Terms of Reference for Contracts for Service under 100k. Detailed guidance for drafting terms of reference is available in the Terms of Reference Guideline. Terms of Reference drafted by the partner When drafting the terms of reference is led by the partner, the use of MFAT s terms of reference template is not mandatory. The template may be provided to partners for their reference to ensure that all the information required by MFAT is included in the terms of reference. Approving the Terms of Reference The activity manager is responsible for seeking approval from the relevant Unit Manager for terms of reference for Activity design. An email approval is sufficient. Developing, Appraising and Approving an Activity Design Page 3 of 32

Convening an Activity Design Team Identifying the design team Contracting the design team Briefing the design team The terms of reference will specify the composition of the design team and expected duration of the assignment(s). This may include a team leader, specialists, and local consultants dependent on the Activity. Other donors may identify or provide team members for multi-donor Activities. The critical point is to ensure clarity of roles, responsibilities, reporting lines, and outputs to be delivered. MFAT may contract part or all of the design team, contribute a contracted team member to a design team, or provide funding to a partner to undertake a design. Specialist skills may also be contracted to support the procurement and negotiation of contracts, if required. Refer to the New Zealand Aid Programme Contracting Policy and Guidelines for contracting processes. Ensure financial approval has been obtained prior to contracting. Written and oral briefing will ensure the design team has the necessary information on the New Zealand Aid Programme s: Mandate Policies including cross-cutting issues of gender, environment and human rights Strategic focus areas Operating context. When briefing the team, ensure they are provided with guidance on the content of an Activity design and on the template to use. Refer to the Activity Planning Policy and Activity Design Document Template. Developing, Appraising and Approving an Activity Design Page 4 of 32

Developing an Activity Document Design Document Content of an Activity Design Document For standard MFAT-led Activity designs, an Activity Design Document should comprise the content set out in the Activity Design Document Template. For non-standard Activity Design Documents (for Investment Priorities), the minimum requirements are set out in the Activity Planning Policy. For partner-led designs, the design must meet MFAT s minimum content requirements but use of MFAT formats or templates is not compulsory. All designs must have a results framework or, for partner-led designs, meet the key standards associated with each component of the results framework. Activity design should be evidence-based, drawing on all available sources of information including research and evaluation findings to help design for best results. Developing a Results Framework Purpose MFAT uses a results-based approach to designing and managing Activities. To ensure that Activity performance reporting is based on clear and agreed results, a results framework is developed during the design stage. The results framework is then used to track progress towards intended results. Refer to the Activity Planning Policy for the policy rules relating to the results framework. Components of a results framework A results framework includes a: Results Diagram Results Measurement Table Monitoring and Evaluation Workplan. The following table summarises the minimum requirements at each stage of the Activity cycle: Activity Lifecycle Identification/Concept Stage Design Stage Results Framework Proposed key long-term outcomes and goal identified and indicative outputs Results framework fully developed Developing, Appraising and Approving an Activity Design Page 5 of 32

Activity Lifecycle Implementation (start) Implementation (ongoing) Results Framework Results framework refined and updated Results framework reviewed and updated (documentation retained) About Results Diagrams Purpose of a results diagram Results diagrams, and the process of developing them, help to ensure that the intended logic for an Activity is clear and agreed by stakeholders. The results diagram provides a visual representation of how the outputs will lead to achievement of the outcomes and ultimately the goal of the Activity. MFAT s standards for results diagrams A results diagram: Is represented as a vertical diagram for MFAT-led Activity design Describes the Activity s goal Identifies and logically links together the Activity s outputs, its short-term, medium-term and/or long-term outcomes Integrates cross-cutting issues by including outcomes for crosscutting issues considered principal or significant Includes outcome statements that: clearly identify the change that is desired do not overlap with other statements include one outcome per statement are relevant, specific, tangible, achievable, and measurable Includes output statements that: clearly identify what is being produced and/or delivered will meaningfully contribute to the short-term and mediumterm outcomes, including those outcomes which address principal and significant cross-cutting issues include one output per statement are relevant, specific, tangible, achievable, and measurable Includes activities and inputs that: clearly identify the activities required, which will lead to the outputs of an Activity clearly identify the required inputs to an Activity. Developing, Appraising and Approving an Activity Design Page 6 of 32

Results diagram format For an example of the format of a results diagram, see Appendix A: Developing a Results Diagram. Appendix A: Developing a Results Diagram Goal of the Activity: Long-term outcome Long-term outcome Medium-term outcome Short-term outcome Short-term outcome Output Output Output Example of Activity and input table format Outputs from the Results Diagram Output 1 Activities to Delivery Outputs Inputs to Resource Activities Output 2 Developing, Appraising and Approving an Activity Design Page 7 of 32

When to develop a results diagram The results diagram should be developed as early in the design process as possible. It will not always be possible to develop a comprehensive results diagram at the start of the process (e.g. concept note stage) as ideas may still be developing and key stakeholders may not be available. However, it is useful to develop a rough working diagram at the concept note stage so that the outputs, and intended key long-term outcomes and goal are identified early. The results diagram should then be fully developed during the design stage (involving stakeholders), before being further refined at the start of implementation, and regularly reviewed during implementation. How a results diagram works The results diagram is developed as a vertical diagram representing the Activity s logic. The diagram shows how the Activity s outputs logically lead to key intended outcomes occurring over time and that contribute to the Activity s goal. The logic is shown by arrows. The components of the diagram therefore represent change over time and how the Activity s goal is intended to be achieved. The results diagram could therefore have at least four levels: output-level, shortterm, medium-term and/or long-term outcomes, and a goal level. It would be unlikely that there would be less than two levels of outcomes in the diagram as normally there would be a short-term outcome to contribute to a longer-term outcome. In a more complex results diagram there may be more that one outcome at different levels. MFAT would not generally expect to see its achievement directly contributing to the goal-level as there will be a number of actors contributing to and other factors affecting the achievement of the goal. It is usually expressed as an intention and is usually at an Investment Priority, population, government or country level. It may link to the programme strategy, depending on the context. Involving stakeholders Results diagrams work best when they are developed involving key stakeholders. This helps to foster a shared understanding about the Activity, and each diagram will reflect the interactions and emerging understandings of the stakeholders. There is no right or wrong results diagram. The important thing is that the diagram reflects the Activity, is clear and simple, and provides stakeholders with a shared understanding and ownership of the intended results. Developing, Appraising and Approving an Activity Design Page 8 of 32

Process for developing a results diagram The process for developing a results diagram varies depending on the nature of the Activity and who is leading the design process. MFAT staff may be developing results diagrams and also working with contractors who are developing results diagrams. It is therefore important that staff understand and are able to manage and engage with the process. Appendix A: Developing a Results Diagram identifies a series of steps that may need to be undertaken to develop the results diagram. Using a results diagram The results diagram is the basis for results-based management of the Activity. At the design stage development of the results diagram provides a clear, agreed logic showing how outputs will lead to the Activity s outcomes and goal, and it helps to plan the various activities and inputs required for the Activity to be successful. The results diagram is used as the basis for developing the rest of the results framework. During implementation, the results diagram should also be used by stakeholders (along with the results measurement table) to engage in discussion about what progress is being made against the intended results of an Activity. It becomes an effective tool in managing for results and it helps identify any key decisions that are required to keep the Activity on track towards achieving its outcomes. About Results Measurement Tables Purpose of a results measurement table The results measurement table provides key information about how the results identified in the results diagram will be measured, or in other words, how the changes from the intervention will be identified. MFAT s results measurement standards A MFAT results measurement table: Has a row for each output and outcome (from the results table) Has indicators, targets, baseline information and methods (how, when and by whom) for measuring each output and outcome. The indicators: clearly identify the achievement of each output and outcome are quantitative and/or qualitative provide a balanced view of performance Developing, Appraising and Approving an Activity Design Page 9 of 32

include one or two Direct Results Indicators from the list of Direct Results Indicators (see the document Direct Results Indicators). Note: Indicators should be collectable and collectable at reasonable cost (human and financial resources). Integrates cross-cutting issues by: including outcomes and indicators for cross-cutting issues considered principal or significant, or including indicators and/or disaggregated data for crosscutting issues considered not targeted (or partially mainstreamed for gender) 1. Note: Gender should be at least partially mainstreamed in all Activities (exceptions to this will require justification). Note: For specifics on integrating climate change as a crosscutting issue refer to the Operational Policy and Guideline: Delivery & Tracking Climate Change Related ODA. Is limited to one or two pages, and no more than three pages. Keep it simple. Who develops results measurement tables MFAT staff may be involved in developing results measurement tables however it is most likely that a contractor who is a monitoring and evaluation specialist will be leading this work. It is important that staff understand and are able to manage and engage with the process. The process for developing a results measurement table should be as participatory as possible as this improves the practicality of the design and generates agreement and ownership about how results are to be determined. Appendix B: Developing a Results Measurement Table outlines steps that may need to be undertaken to develop the results measurement table. How a results measurement table works The results from the results diagram are transferred to the results measurement table, and appropriate indicators, targets, baseline information, and methodology and data sources added. Use of MFAT Direct Results Indicators MFAT uses a list of Direct Results Indicators for its group-level reporting (see the document Direct Results Indicators). It is mandatory that one or two indicators in the results measurement table are selected from the list of Direct Results Indicators, where 1 See AMS Policy Markers (link to be added). Developing, Appraising and Approving an Activity Design Page 10 of 32

relevant and appropriate. This allows MFAT to communicate aggregated results. Headling Results indicators are only one element within the table and should not replace other tailored output and outcome indicators. About Monitoring and Evaluation Workplans Purpose of the monitoring and evaluation workplan The monitoring and evaluation workplan identifies the key tasks that are required to implement the results measurement table. MFAT s monitoring and evaluation workplan standards For each monitoring and evaluation activity the workplan must include information on: the methods, approaches and tools to collect the information required how and by whom the information will be used the timeframe respective roles and responsibilities estimated budget (realistic and appropriate to scale and risk) deliverables, such as reporting and dissemination requirements. When to develop the workplan The workplan should be developed during the design stage (involving stakeholders), and refined at the start of implementation, and regularly reviewed during implementation. How to develop and implement the workplan The information requirements documented in the results measurement table are reinterpreted into a series of implementation tasks. The workplan would then be reviewed early in the implementation phase to ensure that it reflects the monitoring and evaluation needs of the Activity, and what implementation tasks will be needed, by whom, and when. Once agreed, the workplan should be integrated into the Activity s implementation planning, and implementation progress reported regularly. Activity managers should engage closely with implementing partners to ensure full implementation of the results framework. Who is involved Contractors and partners are most likely to be leading the development of a monitoring and evaluation workplan. However, it is important that activity managers and Post staff understanding the type of process and steps required to develop the Plan. The table in Appendix C: Developing a Monitoring and Evaluation Workplan identifies the common steps that are likely to be required. Developing, Appraising and Approving an Activity Design Page 11 of 32

About Transition or Exit Planning Purpose Transition or exit planning helps to ensure the intended horizon for a single Activity is clear and that key steps prior to and post-completion are agreed among stakeholders. The purpose is to support the longterm sustainability of Activity outcomes. When to do transition or exit planning Transition or exit planning should occur during the Activity planning phase. At the concept stage, it is not always possible to know whether transition or exit will occur at the end of an Activity. (But it is still useful to have a conversation about the intended horizon for MFAT engagement, so that even where there is a long term commitment of support, early on there is clarity on what is proposed by way of sustainability and / or follow-up, and the proposed Activity end date.) During the design stage, transition or exit planning should be undertaken more fully (with stakeholders), before being monitored and refined during Activity implementation. Who is involved in transition or exit planning Depending on the nature of the Activity and who is leading the planning process, implementing partners and MFAT staff are most likely to be involved in transition or exit planning, and also working with contractors who are developing Activity designs. (See Appendix E: Transition or Exit Planning Checklist to help.) Stakeholders Transition or exit planning should be as participatory as possible as this helps foster a shared understanding of what is proposed by way of sustainability and / or follow-up, and when an Activity will end, and improves ownership of preparing for completion and sustainability of outcomes. Using transition or exit planning Transition or exit planning will enable more emphasis to be given to sustainability of outcomes, and during implementation is an effective tool in managing preparations for Activity completion. Developing, Appraising and Approving an Activity Design Page 12 of 32

Appraising an Activity Design Once a draft design has been received it must be appraised. Refer to the Appraising an Activity Design Guideline. Approving a Design The Programme Unit Manager or Divisional Manager is responsible for approving the design documentation according to the table below. Where an Activity is being designed and implemented by different divisions or Posts, the Activity Design Document must also be accepted by a Unit Manager in the implementing division or the Development Counsellor or HOM at the implementing Post. Note: Approval of the design document does not constitute any financial authority necessary for the implementation stage. The necessary financial authority can be granted after approval of the design and is governed by the Financial Delegations operational policy. The financial authority to commit funds for Activities over $7 million can only be approved by the Minister. Developing, Appraising and Approving an Activity Design Page 13 of 32

Appendix A: Developing a Results Diagram Steps The steps in the table below show a stepped approach to developing a results diagram. The steps are underpinned by the need for the process to be as participatory with stakeholders as possible as this will help to improve the practicality of the design and broad agreement and ownership of the Activity and its intended results. The process is best guided by a facilitator experienced in results diagram development. Step Action 1 Obtain a facilitator 2 Develop (or ensure) a shared understanding amongst stakeholders of: What a results diagram is, and its purpose How the results diagram fits within the design and implementation (including the results framework and how it will be used) The meaning of output and outcomes (short-term, medium-term and longterm outcome) and goal. 3 Organise materials for developing a visual diagram of the logic e.g. white board or large sheets of paper, sticky notes, pens etc 4 Discuss the aspects of the Activity that have already been determined (e.g. goal, long-term outcome/s, outputs, the issue that is to be addressed) 5 Brainstorm the other outputs and outcomes required to achieve the long-term outcome/s 6 Write down (e.g. on sticky notes) the outcomes and outputs that have been identified (this can be done while discussing and brainstorming), and put these on the whiteboard/paper with the long-term outcomes at the top, followed by the shorter-term outcomes, and outputs at the bottom 7 Move the sticky notes around until everyone is satisfied they are in the right place. Add, integrate, or take away sticky notes as necessary. Notes that are inputs or activities aren t to be included in the diagram but should be documented (e.g. below the diagram). 8 Draw arrows from the outputs up to first level of outcomes, then up to the outcomes at the next level (or if appropriate, skip a level). The arrows show how each output or outcome is intended to lead to another outcome/s. Arrows can only go up or sideways (minimise the latter). Using if then statements can be helpful. 9 Do a backwards check that the higher level outcomes can be achieved from shorter-term outputs and outcomes. If not, then the outputs or shorter-term outcomes may need amending or others added. 10 Take a record of the results diagram. The diagram will be used as the basis for the design and implementation (resourcing, activities, timelines) of the results framework Developing, Appraising and Approving an Activity Design Page 14 of 32

Results Diagram Checklist Use this checklist to check the results diagram. Provides a logical representation of the stages necessary for achieving the intended outcomes. Clearly shows the relationships/ linkages between outputs and outcomes using arrows (i.e. the outputs that are intended to lead to which outcomes, and how these outcomes will lead to longer-term outcomes) Outcomes are stated clearly and succinctly, describe the change and are phrased as an end state Outcomes are relevant, specific and tangible, with one outcome for each statement Developing, Appraising and Approving an Activity Design Page 15 of 32

Example Results Diagram: Business Mentoring Programme Activity s Goal: increase economic development fostered through a greater contribution from the private sector Increased private sector contribution to GDP across all sectors, especially targeted sectors Increased trade (exports) Improved livelihoods for citizens Long term outcomes Increased entrepreneurship from within supported businesses and from other spin-off business Profitable business developed Improved sustainable livelihoods for grant awardees and their families Medium term outcomes Business Initiatives funded Short term outcomes A high number of strong applications received across the sectors Business mentoring Application materials Operations manual Promoting and advertising plan for the fund Key outputs Developing, Appraising and Approving an Activity Design Page 16 of 32

Results Diagram: Activities and Input Table Outputs from the Diagram Business mentoring Application materials Operations manual Promoting and advertising plan for the fund Activities to Deliver Outputs Develop a mentoring approach and provide training for Ministry of Economic Development (MoED, Partner Government) staff Mentoring Plan developed with clients, and mentoring provided Collect feedback and revise approach after one year Develop application form/template (include in the operations manual) and distributed applications Collect feedback and revise prior to the 2nd application round Develop operations manual for the fund Collect feedback and revise prior to the 2nd application round Develop advertising and promoting Plan for the fund Collect feedback and revise prior to the 2nd application round Inputs to Resource Activities Funded as part of the Grant Funding agreement with the MoED MoED will provide staff time Technical Advisor: up to 40 days will be spent supporting development of the service Funded as part of the Grant Funding agreement with the MoED MoED will provide staff time Technical Advisor: up to 7 days will be spent developing, revising and re-developing the application materials Funded as part of the Grant Funding agreement with the MoED MoED will provide staff time Technical Advisor: up to 70 days of the advisor s time will be spent developing, revising and re-developing the operations manual, including 40 days in the first three months Funded as part of the Grant Funding agreement with the MoED MoED will provide staff time Technical Advisor: up to 4 days support Developing, Appraising and Approving an Activity Design Page 17 of 32

Appendix B: Developing a Results Measurement Table Steps Follow these steps to develop a results measurement table where the design is MFAT-led (MFAT designed or contracted). Step Action 1 Obtain a facilitator 2 Develop a table with headings as shown in the examples 3 Place the outcomes and outputs that were identified by the results diagram in the table. Place long-term outcome/s at the top of the table followed by medium-term and shortterm outcomes below. Outputs contributing to the outcomes should be placed below the outcomes 4 Develop an indicator(s) for each output and outcome 5 Identify the baseline data and identify targets (stretch but achievable) for each output and outcome. And note where any further analytical work will be required in the very early stages of implementation to determine baselines or targets 6 Include one-two indicators from the Direct Results Indicator list where appropriate (see Activity Planning Policy) 7 Note method/s for each indicator. This is a method to collect information about the progress towards achieving the outcome or output 8 Any risks to achieving results that are identified during development should be transpose into the Activity Risk Matrix Developing, Appraising and Approving an Activity Design Page 18 of 32

Results Measurement Table Design Checklist Use this checklist to check the results measurement table: Outputs and outcomes from the results diagram are the basis of RMT Includes indicators that measure the achievement of the output/outcome Contains targets and baseline information so the extent of change can be determined Identifies the method to be used to collect information for each indicator, and the methods are appropriate Includes one-two Direct Results Indicators Risks to success have been transposed into the Activity Risk Matrix Developing, Appraising and Approving an Activity Design Page 19 of 32

Results Measurement Table Format: Example The results measurement table shows key indicators and sources of data for monitoring and evaluation of Activities. Results Indicator(s) Baseline Information and Targets Methodology and Data Sources Long-Term Outcomes Medium-Term Outcomes Short-Term Outcomes Outputs Developing, Appraising and Approving an Activity Design Page 20 of 32

Results Measurement Table: Example Results Indicators Baseline Information and Targets Methodology and Data Sources Long-term outcomes Increased private sector contribution to GDP across all Investment Priorities, especially targeted Investment Priorities. Indicator 1: Change in dollar value of the private sectors contribution to GDP Indicator 2: Change in the dollar value of the private sectors contribution to GDP in the targeted Investment Priorities Information is available but not up todate. Will be available in one month, at which time a trend analysis will be used to inform target setting Quantitative information is available each October from the Ministry of Finance (partner Government). There is a one year lag in available information i.e. 2009-10 information will be available in October 2012. Contact is DG. Increased trade (exports) Change in the dollar value of exports Baseline: value $1.25b in 08-09 Target: value $1.3b by 10-11 and Information is available each October from the Ministry of Finance. There is a one year lag in available information i.e. 2010-11 value $1.4b by 11-12 information will be available in October 2012. Contact is DG. Improved livelihoods for citizens Change in the UNDP HDI value Baseline: 0.714 (2009) Target: 0.730, 2011; and 0.740, 2012 UNDP HDI web publication. See http://hdr.undp.org/en/content/humandevelopment-index-hdi Increased entrepreneurship from within supported Indicator 1: Change in annual revenue of the initiatives funded Baseline: calculated from the first set of approved applications Information taken from applications. See income and cost fields businesses and from other spin-off business Target: increase by 10% in year 1, 2 & 3 and then sustained at the level for year 3 Quantitative information available from the Ministry of Finance (contact DG). Information is published in August of each year and there is a one-year lag. i.e. 2009-10 information will be available in August 2012 Indicator 2: Change in the number of new businesses operating in each targeted Investment Priorities Baseline: Agriculture 130 (2009), Tourist 35 (2009), Fisheries 22 (2009) Target: increasing in each Investment Priorities by year three Developing, Appraising and Approving an Activity Design Page 21 of 32

Results Indicators Baseline Information and Targets Methodology and Data Sources Medium-term outcomes Profitable business developed Change in the annual profit (revenue minus costs) of the group of private sector businesses funded Baseline: calculated from the first set of approved applications Target: increase by 5 percent in year 1, 2 and 3, and then sustained at the level for year 3 Information taken from applications. See income and cost fields Improved sustainable livelihoods for grant awardees and their families Change in the livelihood assessment; disaggregated by gender Baseline: calculated from the first set of approved applications Target: improved by more (i.e. a bigger increase) each year for the three years Information taken from applications. See livelihood analysis. The livelihood analysis will be repeated annually by field-workers within one month of their funding anniversary date Short-term outcomes A high number of strong applications received across the Investment Priorities Number of applications received that are rated by the panel as strong for each of the three Investment Priorities; disaggregated by gender (lead applicant) Baseline: first application round will provide the baseline for future application rounds Target: improved for future application rounds Information completed on the application assessment summary sheet for each application (see application quality rating field). To be averaged (aggregated and divided by the number of applications) Business initiatives funded Number funded each round; disaggregated by gender (lead applicant) Baseline: 0 Target: year 1, 10; year 2, 15, year 3, 15. Information to be reported in the coordinating Ministry s End of Round Report. Outputs Business mentoring Indicator 1: Agreed activities under Analysis to be carried out by co-ordinating each mentoring plan completed ministry and reported annually. Indicator 2: Number of people receiving business mentoring (i.e. Direct Results Indicator no. 12); Baseline (2 nd, 3 rd and 4 th indicators): First year of funding for the businesses funded in the first application round will disaggregated by gender provide a baseline. Developing, Appraising and Approving an Activity Design Page 22 of 32

Results Indicators Baseline Information and Targets Methodology and Data Sources Indicator 3: Number of private sector entities provided with support (i.e. business mentoring) Target: 1st indicator, all agreed activities completed on time; 2nd, 3rd and 4 th year indicators, increased each year from year two. Indicator 4: Average number of mentoring activities per business Application materials Application materials contain Target: on-time and available to key Evaluative assessment required information, and are available at all key sites at least four weeks before applications stakeholders close Operations manual Suitable manual developed by August 2010 Target: manual of an appropriate quality, signed-off by the steering Evaluative assessment committee by September 2010 Promoting and advertising plan for the fund Suitable Plan developed by October 2010 Target: Plan of an appropriate quality, signed-off by the steering committee by November 2010 Evaluative assessment Developing, Appraising and Approving an Activity Design Page 23 of 32

Appendix C: Developing a Monitoring and Evaluation Workplan Steps Follow these steps to develop a workplan where the design is MFATled (designed or contracted by MFAT). Step Action 1 Identify a facilitator 2 Develop a table with headings as shown in the examples 3 Determine what monitoring and evaluation tasks will be required and include them in the left column of the table in chronological order 4 Detail in the table (Approach column) the methods, processes and tools for each task 5 Include the timeline for each task (incl. start, finish and any key milestones) 6 Identify in the table who is responsible and their role (designation and organisation) for each task 7 Identify what deliverables, reporting and information dissemination are associated with each task 8 Cost each task and include in the table (right-hand column) 9 Sum the costs and include a budget for monitoring and evaluation, and identify any shortfall Developing, Appraising and Approving an Activity Design Page 24 of 32 2530344v13

Monitoring and Evaluation Workplan Design Checklist Use this checklist to check the workplan. Monitoring and evaluation tasks are sufficient to implement the RMT The approach (methods, processes and tools) are clear and include sufficient detail for implementation and reporting Timeline included and is reasonable Responsibilities and roles are assigned, clear and appropriate Costs for each task are complete and realistic Budget is complete and realistic and any funding shortfalls are identified Developing, Appraising and Approving an Activity Design Page 25 of 32 2530344v13

Example: Monitoring and Evaluation Workplan Format Approach: Includes the methods and processes we will use in undertaking the monitoring and evaluation activities Reporting & Deliverables: What and how the information be reported; to whom and by when; How the findings will be shared and used. Monitoring & Evaluation Tasks Approach Timeline Roles and responsibilities Deliverables and Reporting Indicative Costs Monitoring Evaluation TOTAL INDICATIVE $ COSTS Overall Monitoring and Evaluation Budget Funding source $ Funding source $ TOTAL BUDGETED $ Developing, Appraising and Approving an Activity Design Page 26 of 32

Example: Monitoring and Evaluation Workplan Approach: Includes the methods and processes we will use in undertaking the monitoring and evaluation activities Reporting & Deliverables: What and how the information be reported; to whom and by when; How the findings will be shared and used. Monitoring & Evaluation Tasks Approach (methods, processes and tools) Timeline Roles and Responsibilities Deliverables and Reporting Indicative Cost Monitoring Step 1: Design monitoring system 1.1 Design and implement data collection at application stage Design form Establish system to store, collate and analyse information June 2010 Lead: MoED Support: Advisor Fit-for-purpose application form produced by end of June MoED staff time TA funding: 1 day ($2k) 1.2 Design applicant assessment data collection tool and processes As part of the operations manual development, develop and then establish system to assess and report on the quality of application June July 2010 Lead: MoED Support: Advisor System established by end July 2010 MoED staff time TA funding: 0.5 day ($1k) 1.3 Design end-ofapplication round secretariat reporting Design report format Ensure systems in place for information reporting June-July 2010 Lead: MoED Support: Advisor Report template available MoED staff time TA funding: 0.5 ($1k) 1.4 Design fieldworker data collection tool and processes Design reporting form Establish system to store, collate and analyse information Train field staff June-July 2010 Lead: MoED Support: Advisor Fit-for-purpose reporting forms produced and assessment process established and staff trained by end of July MoED staff time TA funding: 1 day ($2k) Step 2: Collect baseline data 2.1 Collect baseline data all, relevant, indicators Assess information gaps and establish or confirm information availability July 2010 Lead: Advisor Information available TA funding: 2 days ($4k) MoED staff time Developing, Appraising and Approving an Activity Design Page 27 of 32

Monitoring & Evaluation Tasks Approach (methods, processes and tools) Timeline Roles and Responsibilities Deliverables and Reporting Indicative Cost Step 3: Implement monitoring 3.1 Collect applicant assessment data and field worker data Based on tools and processes determined in step 1 Ongoing Lead: MoED System operating by October MoED Staff time 3.2 End-of application round reporting Evaluation Plan and undertake year three evaluation Ongoing Lead: MoED Reporting through the end-of application round secretariat reporting MoED Staff time 4.1 Develop terms of reference, Identify in consultation with key stakeholders the purpose, scope, objectives June-July 2010 Lead: Advisor Support: MoED Documented and agreed terms of reference TA funding: 2 days ($4k) Document and confirm ToR with the Steering Committee (reconfirmed later) 4.2 Consult with stakeholders and develop evaluation plan (to be agreed) Identify and contract evaluator Develop & agree evaluation plan incl. methods and resources needed (responsibility: evaluator) June-July 2012 June-July 2012 Lead: MoED Support: Advisor Lead: Advisor Agreed and high-quality evaluation plan Grant funding: $16k to contract evaluator 4.3 Undertake year three evaluation Complete the evaluation June-Aug 2013 Lead: Evaluator Support: MoED Evaluation report signed-off by Evaluation Steering Group Grant funding for contractor(s)$70k 4.4 Year three evaluation: Report results & develop action plan to strengthen on-going delivery a) Present results Sep 13 Lead: Evaluator Presentation on the results b) Workshop to determine response to results and how services will be strengthened Sep 13 Lead: MoED Support: Advisor Workshop: response to the evaluation, workplan to strengthen services Grant funding: $20k Developing, Appraising and Approving an Activity Design Page 28 of 32

Monitoring & Evaluation Tasks Approach (methods, processes and tools) Timeline Roles and Responsibilities Deliverables and Reporting Indicative Cost Overall Monitoring and Evaluation Budget Grant Funding $106k TA Funding $14k TOTAL FUNDING $120k Developing, Appraising and Approving an Activity Design Page 29 of 32

Appendix D: List of Direct Results Indicators Table 2: New Zealand Aid Programme Direct Results Indicators Investment Priority 1. Renewable Energy Direct Result Indicator 1.1D: People provided with new or improved electricity supply (No., M/F) 1.2D: Installed renewable energy capacity of new or upgraded infrastructure (Megawatts) 1.3D: Renewable energy generated/produced per annum (Megawatts/hour) 2. Agriculture 2.1D: Additional value of agricultural production ($/ % change) 2.2D: People assisted (through training, access to agriculture technologies and advisory support) to increase benefits from agriculture sector (No., M/F) 2.3D: Additional agriculture jobs created (Activity specific) (No.) 3. ICT 3.1D: People provided with new or improved ICT services (telecommunications and /or internet) (No., M/F) 3.2D: People assisted (through training and advisory support) to increase economic or social benefits from the use of ICT services (No., M/F) 3.3D: Government agencies, organisations or business entities assisted (through advisory support) to increase benefits from ICT services (No.) 4. Fisheries 4.1D: People assisted (through training and advisory support) to increase benefits from fisheries/aquaculture sector (No., M/F) 4.2D: Number of identified legislation, plans, strategies that have been agreed and implemented (No.) 4.3D: Additional value from aquaculture production ($, % change) 5. Tourism 5.1D: Additional tourists (Activity specific) (No.) 5.2D: Additional tourism jobs created (Activity specific) (No., M/F) 5.3D: People assisted (through training or advisory support) to increase benefits from tourism sector (No., M/F) 6. Trade and labour mobility 6.1D: People assisted (through training or advisory support) to increase benefits from trade (and labour mobility) sector (No., M/F) 6.2D: Government agencies, organisations or business entities assisted (through advisory support) to facilitate trade and / or increase benefits from trade (and labour mobility) sector (No., M/F) 6.3D: People employed through labour mobility initiatives (including Recognised Seasonal Employer Scheme) (No., M/F) 7. Economic Governance 7.1D: Countries that have received advisory support to strengthen economic governance through bilateral engagements (No.) Developing, Appraising and Approving an Activity Design Page 30 of 32

Table 2: New Zealand Aid Programme Direct Results Indicators Investment Priority 8. Law and Justice Direct Result Indicator 8.1D: People assisted (through training or advisory support) to strengthen law and justice systems. (No., M/F) 8.2D: Government ministries and non-government organisations assisted (through advisory support, training) to increase benefits from strengthened law and justice systems. (No.) 9. Health 9.1D: People that have received specialist health advice and treatment (No., M/F) 9.2D: People that have received essential medicines and care at primary health facilities (No. M/F) 9.3D: Health professionals trained (No., M/F) 9.4D: People provided new or improved water supply (No., M/F) 9.5D: People with new or improved basic sanitation (No., M/F) 10. Education 10.1D: Children assisted in primary and secondary education (through sector support) (No., M/F, per annum) 10.2D: Teachers trained (No., M/F) 10.3D: People that complete vocational training (No., M/F) 10.4D: People that complete tertiary scholarships (No., M/F) 11. Resilience 11.1D: People trained to strengthen resilience (disaster risk reduction and climate change adaptation) (No., M/F) 11.2D: People trained to strengthen disaster preparedness (No., M/F) 11.3D: Government agencies, organisations supported to strengthen (national and regional) resilience (disaster risk reduction and climate change adaptation) (No.) 11.4D: Number of project proposals supported and submitted to the Green Climate Fund (No.) 12. Humanitarian response 12.1D: Vulnerable people provided with essential and useful assistance following a natural or human induced disaster within Pacific and outside the Pacific (No., M/F) 12.2D: New Zealand responses to natural disasters in the Pacific that are launched within mandated timeframe (No. %) Developing, Appraising and Approving an Activity Design Page 31 of 32

Appendix E: Transition or Exit Planning Checklist Transition or exit planning should suit the particular context of the Activity, so details will vary. The checklist below intends to support activity managers: Shared understanding among stakeholders of the Activity end date Clear sense of whether MFAT plans to exit from the Activity or transition to a new, follow-up Activity If transition, brief description of what is intended for the new, followup Activity, anticipated approach or modality and partner(s), if known If known, outline of key steps prior to and post-completion that are necessary to address issues likely to affect the sustainability of outcomes, including monitoring and evaluation tasks If known, identification of inputs, timeframes, responsibilities and any capacity development required for carrying out each step Consideration of expectations / roles of other donors Integration of cross-cutting issues by: - Providing for women s meaningful and equitable participation in transition or exit planning, - Including steps that provide opportunities to address crosscutting issues considered principal or significant Developing, Appraising and Approving an Activity Design Page 32 of 32