The Norwegian Agency for Development Cooperation is a directorate under the Norwegian Ministry of Foreign Affairs. In matters regarding Norway's International Climate and Forest Initiative, Norad reports to the Norwegian Ministry of Climate and Environment. Norad's functions are laid down in the agency's terms of references and annual letters of allocation issued by the Ministry of Foreign Affairs and the Ministry of Climate and Environment. Norad works to ensure effective foreign aid, with quality assurance and evaluation. Norad finances NGOs and does its own research and projects. The current director general is Bård Vegar Solhjell. Norad used to be the official development assistance organization in Norway. As of mid-2004, the responsibility for state-to-state official development assistance has been transferred to the Norwegian Ministry of Foreign Affairs, while Norad continues to fund NGO activities in developing countries, contributes to the management of development funds and endeavours to ensure that the Norwegian development cooperation is evaluated and efficient.