Effect refers to the outcomes of a development activity and/or project at the purpose level. Purpose, effect and outcome all therefore convey the same meaning.

Evaluation is the assessment of how well a project/activity achieved its objectives. Ongoing evaluation (during project implementation) is referred to as 'review' and is linked closely with monitoring.

Goal of a development activity refers to the broader regional, sectoral or national objective that a project and/or activity is expected to contribute towards.

Indicator is the unit of measurement (or pointers) that is used to monitor or evaluate the achievement of project objectives over time. Indicators can include specification of quantifiable targets and measures of quality.

Logical Framework Approach consists of a set of analytical tools which support problem analysis; preparation of a logical hierarchy of project/activity objectives; identification of important assumptions and risks, and specification of monitoring and evaluation instruments.

Logical Framework Matrix (Logframe) is the product of the LFA presented in a Logframe Matrix (also known as the Logframe). The matrix provides a summary of what the project aims to achieve and how, what the main assumptions are, and a framework for developing the activity's monitoring and evaluation system.

Milestone in project implementation is an event which is selected to signify that certain project activities have been completed. Milestones are usually used as trigger points for AusAID to make payments to contractors and may represent an amalgamation of management outputs as opposed to project outputs.

Monitoring is concerned with assessing the implementation progress of a project or activity and identifying action to correct problems where they occur. It includes the processes of collecting, analysing, recording, reporting and using management information about the physical and financial progress of a project. The focus is on the activity and output levels of the Logical Framework hierarchy of objectives. Input monitoring may also be required in some circumstances. Monitoring is a core management responsibility during implementation

Objective refers to what the project aims to achieve at each level of the Logframe hierarchy from the output up to the goal level. One can therefore refer to goal, purpose, component or output level objectives.

Outcome is used to describe what the project or activity is expected to achieve at the component and purpose level objectives.

Output refers to the products and services which are directly produced by an agency (or project) and delivered to external users. In the context of the Logframe hierarchy, outputs are the tangible result of applying inputs and undertaking activities. A distinction should be made between:

• project outputs (which may arise as the result of activities undertaken by a range of different stakeholders),
• contractible outputs (which AusAID specifically contracts an agent to deliver and which must therefore be largely under the agent's control),
• and partner government outputs.

This distinction is important in framing realistic and enforceable contracts with private contractors and in developing practical and effective memoranda of understanding with partner governments.

Purpose of a project and/or activity refers to a medium-term objective that project outputs will contribute toward achieving. It can be used interchangeably with the word 'effect' and outcome. Outcome is the term generally used in AusGUIDE.