enhanced-commonwealth-performance-framework-discussion-paper

Under the proposed model, the performance information in Portfolio Budget Statements and
the annual performance statements in annual reports would be the public documents through
which the measuring and assessment of programmes would be reported. Where reviews have
been or are proposed to be undertaken, there is an expectation that they will be referred to in
entities’ performance information and annual performance statements.
A number of entities already undertake regular reviews and evaluations of their programmes
and activities and are very experienced in this area. The enhanced performance framework is
designed to assist these entities to undertake this activity and if this is not the case, then Finance
needs feedback. Other entities may need to increase their investment in this area to improve
programme performance reporting and accountability. Entities should be aware that their
activity will be subject to assessment and will be auditable.
Section 17 of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule)—
made under the PGPA Act—relates to the audit committee for Commonwealth entities. It sets
out that one of the required functions of an audit committee is to review the appropriateness of
the accountable authority’s performance reporting for the entity. 7 This provision is included to
give the accountable authority of an entity an independent source of assurance that the
performance reporting undertaken by the entity is appropriate for the entity and meets the
requirements set in government policy, or, where relevant, in legislation or otherwise by
Parliament. It underlines the important role of performance reporting in holding
Commonwealth entities to account for their proper use and management of public resources
and for achieving the purposes for which they are created. 8
The PGPA Act has given the Finance Minister and the Auditor-General new roles with regard to
accessing and auditing performance information and annual performance statements
themselves. These include:
• the Finance Minister is able to request reports, documents and information relating to
the activities of an entity and any subsidiaries of an entity (section 19(1)(b))
• the Finance Minister and Auditor-General have free access to records about the
performance of Commonwealth entities (section 37(3)) and also the accounts and
records required for reporting and auditing (section 41(3))
• the Finance Minister, together with the responsible Minister, is able to request the
Auditor-General to examine and report on an entity’s annual performance statements
(section 40(1)). The Auditor-General can also conduct a performance audit of a
Commonwealth entity.
These new roles are intended to ensure that the requirements of the enhanced performance
arrangements are met and that the quality of non-financial performance information is
improved over time.
This information gathered from programme reporting, evaluation and reviews will not only
assist responsible Ministers and managers in meeting their respective roles and responsibilities,
but will also be important from a whole-of-government perspective. The government will be
better able to assess the relative success of individual programmes and make informed
decisions about resourcing, and the Parliament will have better information to support its
oversight role.
7 This section of the PGPA Rule is made for section 45(2) of the Act. The requirement for ‘reviewing the
appropriateness of the accountable authority’s ... performance reporting’ is one of four functions specified
by law for inclusion in the written charter for an audit committee of a Commonwealth entity.
8 Section 15 of the PGPA Act.
Enhanced Commonwealth Performance Framework—Discussion Paper | 24