Contents Audience This applies to accountable authorities or directors, chief financial officers, chief operating officers, programme managers and officers responsible for measuring and reporting on the performance of activities delivered by a Commonwealth entity or Commonwealth company. Key points The enhanced Commonwealth performance framework will be implemented from 1 July 2015 to meet the requirement for a performance framework paragraph 5(b) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The enhanced Commonwealth performance framework – implemented through the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) – requires Commonwealth entities and companies to prepare corporate plans by the end of August each financial year (or by the end of February for entities and companies that operate on a calendar year basis). Commonwealth entities are also required to include annual performance statements in their annual reports at the end of each financial year. Transitional arrangements are in place for 2015–16 for Commonwealth entities that publish Portfolio Budget Statements (PBS). For 2015-16, Commonwealth entities are
performance information reported in an entity’s corporate plan, plus any performance measurements that relate to material new activities proposed for funding by the parliament. The performance information for established programmes that are reported in an entity’s PBS must have a strategic focus, and must be able to be read across to the entity’s corporate plan for that year. Corporate plan Starting in 2015–16, Commonwealth entities and Commonwealth companies will be required to publish corporate plans by the end of August of each financial year (or by the end of February for entities and companies that operate on a calendar year basis). The corporate plan is the principle planning document of an entity. It sets out the purposes and activities that the entity will pursue and the results it expects to achieve, including explaining the environment and context in it operates, and its planned performance measures, risk profile and capabilities. Each plan, unless otherwise prescribed by the entity’s enabling legislation, is required to cover a minimum of four reporting periods (usually four financial years). An entity’s corporate plan must be provided to the responsible Minister and the Minister for Finance and made publicly available on the entity’s website. Annual performance statements Annual performance statements are the mechanism through Commonwealth entities report on their actual results against the planned performance measures outlined in their corporate plans. Additionally, the performance measures that an entity identifies in its portion of a PBS are a strategic focused subset of the information it identifies in its corporate plan. As such, annual performance statements will acquit both the performance information in corporate plans and the PBS. The annual performance statements will replace the report on performance section in annual reports. The annual performance statements should present an entity’s actual performance in fulfilling its purposes, including meeting government policy objectives that relate to it, through its activities. The statements should be a direct acquittal of the performance measurement and reporting intentions identified in the entity’s corporate plan at the beginning of the reporting period. Section 40 of the PGPA Act allows the Australian National Audit Office to conduct audits of annual performance statements. Such audits may be initiated at the discretion of the Auditor-General or at the request of the Minister for Finance or responsible Minister. An entity must prepare its annual performance statements as soon as practicable after the end of each financial year and include the statements in its annual report. Annual reports An entity’s annual report is still a key document under the enhanced Commonwealth performance framework. It includes the audited financial statements and – from the reporting period onwards – an annual performance statements for entities.