criteria in both their corporate plans and in any Portfolio Budget Statement, Portfolio Additional Estimates Statement or other portfolio estimates statement. The requirements for annual performance statements are designed to provide a consistent approach to performance reporting. The statements consolidate relevant performance. The aims are to improve the readability of this information and to provide a clear line of sight between planned performance for the reporting period as outlined in the corporate plan, Portfolio Budget Statements and Portfolio Additional Estimates Statements of an entity over the reporting period. Under previous arrangements, entities’ reporting of performance, through the publication of annual reports, varied significantly in quality and structure. This has limited the ability to clearly ascertain the scope, nature and success of an entity’s performance and to what extent the entity has achieved its purposes. It is fundamental to the objectives of the PGPA Act that the presentation of entities’ performance to the public and the parliament is meaningful and improves public accountability. The annual performance statements replace the previous annual report non-financial performance reporting requirements (for non-corporate Commonwealth entities) creating a clear, concise and consistent approach to performance reporting across all Commonwealth entities. It is understood that the development of improved performance information and reporting frameworks will evolve over the initial reporting cycles under the new arrangements. To help entities assess their progress Finance has published a performance maturity model (provided at Appendix A). Portfolio Budget Statements The majority of Commonwealth non-corporate and corporate entities receive some level of appropriation funding. As a result, key strategic information relevant to entities appears in their responsible Minister’s Portfolio Budget Statements that accompany the annual Appropriation Acts. Portfolio Budget Statements are publications presented to parliament by the responsible portfolio minister. They describe, at a strategic what is intended to be achieved with money appropriated by parliament. The Portfolio Budget Statements explain the estimates for the purposes of the Budget Appropriation Bills and informs Senators and Members of Parliament of changes in the proposed allocation of resources to entities within the portfolio. The Portfolio Budget Statements are formal ministerial documents. Together with the Budget Papers, Portfolio Budget Statements they represent a package of documents tabled in Parliament on Budget night, which explain the Government’s budget decisions.
Those responsible for compiling annual performance statements should include audit committee clearance in their timeframes, and provide the audit committee with any required supporting documentation. Further information on the role of audit committees and the enhanced commonwealth performance framework can be found in the paper entitled Function of audit committees: Reviewing the appropriateness of performance reporting, including the 2016-17 annual performance statements. Appendix A – Performance maturity model Dimension Sub-dimension Maturity level Beginning Developing Mature STRATEGY Purpose Strategic purposes are ambiguous and not linked to expected measurable results (i.e. unclear purposes impedes overall assessment of an entity’s performance) There is some reference to strategic purposes and links to expected measurable results Entities’ long term strategic purposes are expressed clearly and link directly to expected measurable results Capability Resource management planning is not clearly linked to an entity’s ability to achieve its purposes There are some links between resource management planning and an entity’s ability to achieve its purposes Resource management planning is clearly linked to an entity’s ability to achieve its purposes Environment Impacts of factors in the operating environment, on an entity’s ability to achieve its purposes are unclear Impacts of factors in the operating environment on an entity’s ability to achieve its purposes are identified but not clearly linked to impacts on achieving purposes Impacts of factors in the operating environment on an entity’s ability to achieve its purposes are clear CULTURE Leadership Producing strategic performance information is generally viewed as a compliance exercise. is limited engagement by senior leadership in its development and use The benefits of developing and using strategic performance information, are highlighted by senior leadership Senior leaders value, and are engaged in, driving the development and use of high quality strategic performance information
Capacity The skills of, and relationships between, corporate and program areas to establish and maintain robust entity performance frameworks and meaningful performance measures, are limited, despite pockets of expertise The skills of, and relationships between, corporate and program to establish and maintain robust entity performance frameworks and meaningful performance measures, are beginning to be widespread The skills of, and relationships between, corporate and program areas to establish and maintain robust entity performance frameworks and meaningful performance measures, are widespread. The entity is recognised for its performance frameworks and performance measures Risk Entities provide limited insight into how risk management underpins their approach to achieving their purposes. There is generally a risk averse culture Entities provide a broad insight into how risk management underpins their approach to achieving their purposes. There is a culture where the occasional failure is accepted, expected and valued Entities clearly outline how risk management underpins their approach to achieving their purposes. All performance information is highly valued PERFORMANCE INFORMATION Meaningful performance information Measures are output focused. Understanding of meaningful performance measures is low. Annual, quantitative KPIs are the main tool used Developing meaningful performance measures is an integral component of policy and program development and a mix of appropriate measures are beginning to be used There is an appropriate mix of short and longer-term quantitative and qualitative performance measures, which support an assessment of an entity achieving its purposes and an evidence based performance story Tiered structure No formal system and planning process that links the different levels of performance information within an entity A system and planning process is being developed that links different levels of performance information within an entity is a system and planning process that links the different levels of performance information clear within an entity Use Performance information is not used widely to drive better performance and assess achievement of purposes Performance information is used sporadically to drive better performance and assess achievement of purposes. Performance information is used widely to drive better performance and assess achievement of purposes * The performance maturity is a self-assessment tool for entities – it will not be used by the Department of Finance to assess entities’ performance maturity. Also available: .