Direct Aid Program (DAP)
General Guidelines
Administration
The day-to-day administration of the Direct Aid Program (DAP) is the responsibility of Australia's overseas Posts. The program coordination function is located within the Executive, Planning and Coordination Branch of the Australian Department of Foreign Affairs and Trade (DFAT).
At each Post a DAP Committee is formed to consider applications and to agree on the Post's strategic DAP plan. The Committee would normally be chaired by a DFAT officer at the Post, and may include other Australia-based staff at the Post, locally engaged staff, or members of the local community. The Committee makes recommendations to the Head of Mission, who makes the final decision for funding.
There is a range of approaches for sourcing applications, according to local circumstances. Some Posts may conduct annual application rounds, while other Posts may respond to requests on a more case-by-case basis. On occasions Posts may invite particular communities to identify a project.
The DAP Committee, which includes representatives from DFAT geographic divisions and AusAID, is convened each year to consider claims and bids by Posts for an annual DAP allocation and to provide recommendations on levels of funding for Posts. The final approval for allocations is made by the relevant Deputy Secretary.
Eligibility for funding
In selecting projects to fund, Post DAP Committees need to ensure that projects are also consistent with the international relations and public diplomacy objectives of the Post. Special attention is given to projects providing direct benefits to those most in need, including concerning gender issues, children and other disadvantaged groups, and to projects with environmental benefits.
Eligible activities are normally implemented over a relatively short period of time, not more than one year. Examples of areas where DAP grants may be given are: community health, education, small scale infrastructure, sanitation, and rural development. In certain cases, consideration may be given to contributions to disaster relief operations, activities of cultural significance and sporting equipment for disadvantaged communities.
As a general rule, the following activities and inputs are not funded:
- conferences in-country;
- Australia or overseas study tours;
- academic training in Australia;
- items of a recurrent nature, such as staff salaries, office rental and utility costs, spare parts, supplies, routine maintenance and repairs; and
- payment of salaries or fees for consultants and advisors, where they constitute a major cost component.
The focus is on activities that have a direct, practical, immediate impact.
Consideration may at times be given to small-scale community activities that have prospects of eventually generating commercial benefits where the community can demonstrate to the satisfaction of Post that proceeds from the activity will be reinvested in the project.
Project proposals
Applications should be directed to, and are considered at, Posts. Intending applicants should contact the relevant Australian Embassy or High Commission for details of the application process for the country in which the project is to be undertaken.
Proposals must be clearly defined with specific outputs. Where the proposed activity has been submitted to other possible funding sources, or is being implemented in conjunction with activities funded through other sources, this must be clearly stated in the application.
Selection Process
Assessments of applications by Post DAP Committees are made primarily on the basis of the supporting information supplied by applicants. Our sample Project Assessment form (pdf) (rtf) provides a guide to the criteria applied. Intending applications should contact the relevant Australian Embassy or High Commission for their application forms and procedures.
Activities must be consistent with the Post’s international relations and public diplomacy objectives for the country. In addition, consideration is given to the following issues:
- DAP activities should be of high developmental impact and applications should clearly detail the expected development impact, for example in terms of promoting community development, education, health, gender (including the role of women), disadvantaged groups, and environmental sustainability.
- It is essential that DAP projects be orientated towards self-help and be sustainable and should not rely on future DAP grants. Submissions should demonstrate a commitment on the part of the local authorities and/or people who will be the beneficiaries to implement the activities and sustain them.
- Appropriate institutional support arrangements must be described, eg the level of recurrent costs generated and evidence of capacity to sustain these costs in the longer term.
- The application should also detail the extent to which the activity might act as a catalyst for additional development of the target community or a model for similar projects elsewhere.
- Preference is given to innovative and creative projects, particularly those using low technology solutions.
- Projects involving family planning activities must comply with AusAID population guidelines.
Posts are required to send a letter advising applicants of the project approval and of the conditions relating to the grant and to the applicant as soon as possible after the completion of a selection round. If recipients are unable to commence and/or complete projects in the agreed time, they should not proceed with their application and are required to repay the grant to the mission.
Conflicts of interest
In order to maintain the integrity of the Program, on joining the DAP Committee members must report any perceived conflicts of interest to the Committee Where a conflict of interest arises, DAP Committee members are expected to remove themselves from involvement with that particular project.
To minimise the risk of conflict of interest, decision makers are asked to guard against any suggestions of favouritism or bias in funding decisions. Individual officers, whether members of the Post DAP Committee or not, are asked to refrain from discussing or receiving applications from prospective applicants as this can pre-empt the Committee’s deliberations. Similarly situations are to be avoided whereby applicants are “coached” in preparing submissions. Repeated contact by a potential applicant prior to a formal submission is discouraged and should be avoided.
Notwithstanding the above, the intention is not to discriminate amongst applicants on the basis of literacy, or other skills. Depending on local conditions, some Posts may need to assist potential applicants to complete the forms and to outline the project proposal in a way that does justice to the proposal. In addition, Posts can invite applications from other organisations, including NGOs, to assist in the development of strategic partnerships.
Posts should ensure that DAP documentation and the conditions contained therein are in accordance with local legal requirements and adequately protect the Post’s interests. Where necessary, Posts should consult their local legal advisers. The extent to which local legal advice is required will depend on the Post’s risk assessment of both the project and the legal environment.
Risk management
A general test for the DAP Committee and Head of Mission when approving projects is whether that expenditure is an appropriate use of Australian Government funds and conforms with the departmental guidelines. Posts must have in place an appropriate and transparent accountability process and be able to justify its selection process when reporting on its annual DAP allocation expenditure. In the event that a Post is audited on its DAP processes, it will be required to defend a funding decision.
Project acquittals are required to focus on the outcomes and outputs and not just inputs.
Applicants are required to demonstrate their bona fides at the outset through referrals or references and detailed proposals. When providing funds to successful applicants, DAP Committees may consider making payments in several tranches, and/or signing contracts with recipients which outline responsibilities of the applicants (for example, progress reports, acquittals, liability in case of accidents, returning funds if the project does not go ahead).
Posts are required to make best endeavours to ascertain whether the project has been completed as proposed. A report should be kept with other project papers at the Post. A “best endeavours” approach recognises that site visits are neither practical nor cost-effective in many circumstances. In such cases, Posts are asked to seek feedback from regional governments, local councils, NGOs or local cooperatives to vouch that a project has been completed. DAP funds are not to be used for site visits.
Preference is given to low risk, low cost, comparatively low technology projects (for example building wells, other construction activities, purchasing school furniture, or providing sewing machines). Posts may consider providing computers or similar equipment where they believe the application is well considered and the organisation or community has demonstrated a capacity to maintain the equipment and fund its day to day use.
Badging and promotion of projects
Where practical and cost effective, Posts seek to arrange some form of permanent reminder of the role the Post has played in funding a project, through DAP funds are not to be used to fund badging or promotional activities.
Building and construction projects
Post DAP Committees are asked to consider appropriate environmental, construction, and occupational health and safety standards in assessing projects involving construction. This may include assessing the effectiveness of the administering organisation in its management of safe work practices and application of environmental and building code standards. Building and construction related projects should attempt to meet or exceed Australian standards within the limits of materials and technical skills available in one country, but it may not be feasible to impose Australian standards on projects in countries where national standards already exist. UN WHO standards should be adhered to where appropriate. The DAP should observe AusAID guidelines, which do not allow the use of asbestos as a building material.
Acquittal Reports
All recipients of DAP funds are required to submit an acquittal report that provides an accurate assessment of the actual outcomes of the activities (compared with the anticipated outcomes stated in the application), as well as financial information. The Acquittal Report is the major vehicle Posts have for ensuring that recipients comply with accountability and evaluation requirements. Posts should provide recipients with details of their requirements for financial records and other reporting for acquitting projects.