Conduct biannual “audits” of the operational account to assist GoN in managing targeted budget support Achieved A review of the Operational Account was undertaken by Stirling International in August 2015. DFAT and GoN subsequently undertook a cleanup which reallocated unexpended funds from completed projects and rectified incorrect payments. DFAT has commissioned a further series of biannual reviews which now include a maturity assessment and roadmap for change. These will assist GoN in managing business process improvements and subsequently enhance the control environment leading to better accountability and transparency. The most recent biannual review was conducted in May 2016 by Stantons International. Conduct an Assessment of National Systems (ANS) review Not Achieved The ANS review was postponed due to the mid-year Nauruan elections. It commenced in August 2016. Enhanced economic infrastructure Stage one of hospital redevelopment completed by February 2016 Achieved Stage one construction of the hospital redevelopment project was finalised in February 2016. New generator for NUC procured through ADB Partly Achieved The new generator for NUC has been successfully tendered by ADB. It is expected to be shipped and installed by August 2017, once NUC refurbishment has been completed. Australia proposes the following performance benchmarks to assess progress towards the strategic objectives over the life of the . Australia will report on progress against benchmarks through annual Aid Program Performance Reports (APPRs). Future year performance benchmarks will be determined following the review and analysis of APPRs. Performance Benchmarks 2016-17 Strengthened provision of education and health services Amount and timing of budget support for education and health is negotiated with GoN by 30 September 2016. Payment of budget support made according to agreed across the financial year Conduct a “diagnostic” of the health sector in 2016 to help map out key issues, opportunities and recommend options for priority actions Provision of technical assistance that assists GoN to deliver and implement health and education services Strengthened governance and Public Service capability Provision of relevant technical assistance that contributes to strengthening Nauru’s financial management and economic governance decision making Conduct biannual reviews of the operational account to provide assurance that expenditure is appropriate; key controls are effective; and to drive business improvement Conduct an ANS review in August 2016 Tender for a GoN Independent Procurement (IPA)
B - AQC ratings AQC investment performance over the previous 12 months and the prior year (2015) AQC ratings. Investment name Approved budget and duration year on year Relevance Effectiveness Efficiency Monitoring and Evaluation Sustainability Gender equality Risks and Safeguards Nauru Infrastructure and Services (INI949) $45.85m 2009-18 2016 AQC 5 4 3 4 3 4 4 2015 AQC 4 3 3 3 4 4 4 Nauru Public Sector Reform (INI943) $31.7m 2009-18 2016 AQC 5 4 5 4 4 2 4 2015 AQC 4 3 3 3 4 4 4 Nauru Improved Education (INI950) $25.99m 2009-17 2016 AQC 5 4 4 3 5 4 3 2015 AQC 4 3 3 3 4 4 4 Nauru Improved Health (INI970) $25.75m 2009-18 2016 AQC 5 3 3 3 3 4 4 2015 AQC 4 3 3 3 4 4 4 Note: ratings have a maximum of 6