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1. Background

The Independent Commission for Aid Impact (ICAI) was established in May 2011 as an Advisory Non-Departmental Public Body (NDPB), sponsored by DFID. Its third phase commenced in July 2019 and will end on 30 June 2023. ICAI鈥檚 current functions are to: carry out a small number of well-prioritised, well-evidenced, credible, thematic reviews on strategic issues faced by the UK government鈥檚 aid spending; inform and support Parliament in its role of holding the UK government to account; and ensure its work is made available to the public.

ICAI鈥檚 work supports the Foreign Secretary鈥檚 statutory obligation under Section 5 of the International Development (Official Development Assistance Target) Act 2015 to make arrangements for the independent evaluation of the extent to which UK ODA represents value for money. Its role encompasses all UK government ODA spending. The devolved administrations are not within its remit.

Almost 10 years from ICAI鈥檚 establishment, in the context of the new department and evolving ODA governance arrangements, it is an appropriate time to consider how ICAI might evolve.

2. Objective

The aim of this review is to ensure that ICAI鈥檚 current remit and operating model are adequate for improving the impact of UK aid and for identifying what works in line with the aims of the Foreign, Commonwealth and Development Office (FCDO).

3. Previous review

The 2017 Tailored Review of ICAI was carried out in accordance with the Cabinet Office Public Bodies Reform Agenda, which required consideration of whether ICAI performed a necessary function, and whether it should remain an NDPB. It concluded that the functions performed by ICAI are still required, subject to some refinements to promote clarity and maximise value for money.

The Cabinet Office has paused the Tailored Review programme. This departmental review requested by the Foreign Secretary will build on the evidence and findings of the 2017 review.

4. Scope of review

The review will be proportionate to ICAI鈥檚 size and nature. It will examine ICAI鈥檚 current remit (as described in paragraph 1). It will cover three core questions:

• ICAI鈥檚 purpose and remit to examine the effectiveness of UK ODA and to focus on identifying what works best 鈥� i.e. what has the maximum impact - in UK ODA policies, programmes and interventions
• ensuring that ICAI鈥檚 output includes timely, action-orientated recommendations as well as broad critical analysis
• options for ministerial engagement with ICAI鈥檚 work

The review will look at ICAI鈥檚 effectiveness across these themes, including through its strategy, structure, governance, methodology and operating model.

The review will also assess how to ensure value for money in the way ICAI operates.

The review will not assess ICAI鈥檚 status as a Non-Departmental Public Body.

5. Departmental governance arrangements and review team

The Foreign, Commonwealth and Development Office will resource the review and publish the final report.

The review team (3 full-time members of FCDO staff) will be responsible for launching the review, consulting stakeholders, gathering evidence, analysing results, writing the report and disseminating its results.

The review team will report to a Steering Group led by a Non-Executive Director, which provides oversight and challenge for the review.

6. Consultation with other parties/stakeholders

A panel of independent experts will be appointed by the Foreign Secretary to provide external challenge to the review.

ICAI will have the opportunity to comment and input from the planning stage onwards, including on the emerging conclusions and recommendations of the review. ICAI will also be asked to nominate stakeholders for consultation.

The review team will consult the relevant Parliamentary Committees and other relevant stakeholders. The TORs will be published on 188体育 and interested parties will be invited to contribute input and evidence.

7. Outputs

The outputs from the review will be recommendations on ICAI鈥檚 remit, operating model, its approach to contracting expertise to conduct reviews, and its wider institutional relationships.

The results of the review will be presented in a report, copies of which will be placed in the Libraries of the House and shared with key stakeholders including the relevant Parliamentary Committees.

FCDO will announce the publication of the review by Written Ministerial Statement in both Houses.