enhanced-commonwealth-performance-framework-discussion-paper

2 Enhanced performance framework
2.1 Improving the Portfolio Budget Statements
This section examines how the quality of reporting information in Portfolio Budget
Statements can be strengthened, while minimising information that is not widely used or
valued. It also seeks stakeholder views on how to potentially reduce the volume of reporting
in Portfolio Budget Statements by rationalising information that is duplicated in the budget
papers and streamlining the way financial information is presented. We are also interested in
your views on how, and in which documents, performance information is best presented,
bearing in mind the need to continue to meet the expectations and information needs of
Parliament at budget time each financial year.
Discussion then turns to how effective KPIs are in measuring the non-financial performance
of Commonwealth entities. We identify the challenges of relying on KPIs as the sole nonfinancial
performance measurement tool and present ideas for improving them. It is
proposed that KPIs will be complemented by a range of different performance management
tools and we are seeking your input on what support and guidance is required in
implementing them.
Portfolio Budget Statements are primarily explanatory documents to inform parliamentary
consideration of the annual Appropriation Bills. They supplement the core budget
documentation provided on budget night. This timing impacts the content of the Portfolio
Budget Statements, as they are often produced within tight time constraints.
Portfolio Budget Statements are currently structured as follows:
Item
Description
Portfolio
overview
Chapter for
each entity in
the portfolio,
comprising
three sections
Sets out the Minister’s and portfolio responsibilities, the portfolio
structure by entity and outcome, and a portfolio resource
statement
Section 1: Overview and resources (including a strategic direction
statement, an agency resource statement, and a summary of
budget measures)
Section 2: Outcomes and planned performance (including the
outcome statement and strategy for each outcome, an expenses
table for each outcome, and the objectives, expenses, deliverables
and key performance indicators for each programme)
Section 3: Explanatory tables and budgeted financial statements.
In addition to the Portfolio Budget Statements produced at budget time, Commonwealth entities
also produce portfolio additional estimates and supplementary additional estimates statements
when required. Those documents perform the same function as Portfolio Budget Statements,
but with a greater emphasis on explaining any changes in resourcing since the budget, such as
resourcing changes resulting from new Appropriation Bills. They also include any updates to
non-financial performance information that are needed to accommodate or explain the
resourcing changes.
Enhanced Commonwealth Performance Framework—Discussion Paper | 8