Chapter 2Overview of the annual reports examined
2.1In accordance with Standing Order 25(20)(a), the committee has examined annual reports against relevant legislative and reporting requirements and found them to be ‘apparently satisfactory’. This chapter highlights some of the findings in relation to the annual reports examined.
Performance reporting
Availability of performance framework documents
2.2The availability of relevant performance framework documents is essential to be able to assess a body’s level of achievement of planned performance. Commonwealth entities and companies are required to set out in their corporate plan each year how they will achieve their purpose and how their performance will be measured and assessed.
2.3While these documents have been primarily located on agencies’ websites, the Government Transparency Portal has now become an important repository for PGPA Act performance framework documents. Since the launch of the Transparency Portal website in 2019, the committee has monitored the availability of the annual report, corporate plan and portfolio budget statement (PBS) for the relevant bodies it has oversight of.
2.4The presented 2021-22 annual reports for Commonwealth entities and companies were available in HTML format on the Transparency Portal and in PDF format on most bodies’ websites. However, the Department of Veterans’ Affairs (DVA) only provided a link to the 2021-22 annual report on the Transparency Portal website and did not provide the report in PDF format on their website. The availability of annual reports as a complete document in PDF format is an important resource which the committee hopes to see made available on DVA’s website as well as in the Transparency Portal, as noted in previous reports.
2.5All 2021-22 corporate plans for the bodies whose annual reports were examined were located and available for reference.
2.6All 2021-22 PBSs for the Department of Defence (Defence) and the Departmentof Foreign Affairs and Trade (DFAT) were available on the Transparency Portal and on their respective websites.
2.7The committee notes some non-corporate Commonwealth entities, in reporting on the performance of the entity, referenced an incorrect paragraph of the PGPAAct and did mention the required rule.
‘Clear read’ principle
2.8Department of Finance (Finance) guidance on annual performance statements notes the importance of the alignment of the annual performance statement with the corporate plan and PBS:
Annual performance statements should include information that demonstrates the connection between the corporate plan, PBS and annual performance statements to enable a ‘clear read’ across the three documents.
To achieve this, entities may wish to include a diagram demonstrating how the performance information fits together across the documents, or page number references to the corresponding information in corporate plans and the PBS.
It is good practice for entities to set out the discussion of the achievement of performance in their annual performance statements in the same order as the corporate plan, reinforcing the connection between the documents. Each performance measure should also be expressed in a consistent way to aid the clear read between its planned performance information and performance results.
2.9Overall, most annual reports examined demonstrated a ‘clear read’ between the review of performance presented in the annual reports and the source documents. As the committee has noted previously, the inclusion of references in the performance information to the relevant part of the corporate plan or PBS for each measure assisted in the examination of these reports and many reports now incorporate this feature.
Defence portfolio
Department of Defence
Tabling of report
2.10The Department of Defence’s Annual Report 2021-22 was tabled in the Senate on 3November2022 and the House of Representatives on 7 November 2022. The report was submitted to the minister on 4 October 2022.
Secretary’s and Chief of Defence’s reviews
2.11In the Secretary of Defence’s review for 2021-22, Mr Greg Moriarty, noted Australia was facing its most challenging and complex strategic environment since World War II, an intensification of strategic competition in the Indo-Pacific region and Russia’s invasion of Ukraine.
2.12Mr Moriarty highlighted several of Defence’s achievements and priorities during the reporting period, which included:
Defence’s assistance during the COVID-19 pandemic as well as security and disaster relief challenges, including the flooding emergencies in NewSouthWales and Queensland;
Australia’s trilateral security partnership (AUKUS), strengthening and supporting our security and defence interests as well as expanding Australia’s collective capability advantage in the emerging strategic environment in the Indo-Pacific;
Defence’s investment in new technologies to increase the range and lethality of the Australian Defence Force (ADF);
Defence’s continued support of Australian businesses, executing 64 contracts worth a combined total of $152.7 million;
tackling new and emerging threats in cyber and space, including partnering with the United States National Reconnaissance Office for two space missions;
Australia’s continued partnership with Southeast Asian allies, commemorating the 50th anniversary of the Five Power Defence Arrangements and the Quadrilateral defence relationships with India, Japan and the United States;
current recruitment and retention challenges and the likelihood of Defence’s long-term growth targets; and
Defence continuing to build a diverse and inclusive culture for its people.
2.13In his review for 2021-22, the Chief of the Defence Force, GeneralAngusJCampbell AO DSC, noted similar achievements and priorities while also mentioning:
Defence’s continued work on a number of people-focused reviews and inquiries, including the Royal Commission into Defence and VeteranSuicide and the Afghanistan Inquiry reforms; and
the ADF’s continued partnership in our immediate region, including conducting multiple operations with the governments and peoples of Tonga, Papua New Guinea, and the Solomon Islands as they contended with natural disasters, the effects of the COVID-19 pandemic and civil unrest.
Performance reporting
2.14Defence’s reporting framework is set out in the Department of Defence’s 2021-22 Portfolio Budget Statements (Defence PBS) and the Department of Defence’s Corporate Plan 2021-25 (Defence Corporate Plan). The Defence PBS sets out the Department of Defence’s outcomes and the programs administered underneath them.
2.15Defence’s purpose and mission is: ‘To defend Australia and its national interests in order to advance Australia’s security and prosperity.’ Underpinning this purpose is two outcome statements set out in the Defence Corporate Plan, which are:
Defend Australia and its national interests through the conduct of operations and provision of support for the Australian community and civilian authorities in accordance with government direction; and
Protect and advance Australia’s strategic interests through the provision of strategic policy; the development, delivery and sustainment of military, intelligence and enabling capabilities; and the promotion of regional and global security and stability as directed by government.
2.16The performance of the department is measured through 21 performance measures with 31 performance targets that relate to the outcomes.
2.17For 2021-22, Defence has adopted a four-tier rating system to assess achievement against the 21 performance criteria:
Achieved: performance is achieved where all sub-measures are achieved.
Substantially Achieved: performance is substantially achieved where some sub-measures are achieved,and some sub-measures are partially achieved.
Partially Achieved: performance is partially achieved where: all sub-measures are partially achieved; or at least one but not all sub-measures are not achieved.
Not Achieved: performance is not achieved where all sub-measures are not achieved.
2.18In the reporting period, Defence reported twelve targets as Achieved, five targets as Substantially Achieved, and four targets as Partially Achieved. Defence did not report any targets as Not Achieved.
2.19Of its 21 performance targets, the four that were Partially Achieved were:
deliver the naval shipbuilding enterprise in accordance with the Naval Shipbuilding Plan to schedule, budget and scope. Defence noted supply chain issues due to COVID-19 and other disruptive global impacts. Defence remained focused on delivering the objectives of the 2017 Naval Shipbuilding Plan, as modified by the 2020 Force Structure Plan and the Government’s commitment to AUKUS;
minimise the exposure to unnecessary health, wellness and safety risk. Defence noted ‘Mandatory work health and safety training compliance (target 100 per cent)’ was not achieved with an average compliance rate of 81 per cent completion of mandatory training over the 2021-22 reporting period which has remained consistent with previous reporting periods. The ability of Defence to meet this target was partially limited by the availability and classification of personnel (including personnel on leave without pay). The number of notifiable incidents increased by two per cent and of the 419 notifiable incidents in 2021-22, there were 18 fatalities;
to transition Australian Defence Force personnel across the service spectrum with afocus on transition preparedness across personal security factors (using the HumanSecurity Framework). Customer satisfaction with Transitional Coaching, Australian Defence Force Member and Family Transition Seminars and Transition Programming remains high; however, Defence did not achieve a 95 per cent service level for General Practitioner appointments during the reporting period. Customer satisfaction noted a slight decrease during the reporting period from 92.7 per cent to 90.7 percent; and
ADF families are supported through the delivery of wellbeing andsupport services with a focus on planning for their personal security using the Human Security Framework. Defence did not finalise the review of the Defence Family and Domestic Violence Strategy, which was ongoing and anticipated for release in late 2022 after the release of the National Plan.
Financial performance
2.20Defence recorded a deficit of $535 million or 1.2 per cent of the final budget. Defence noted the 2021-22 result was the first overspend in five years.
2.21Defence noted the deficit includes the impact of the final termination and transition costs for the Future Submarines contract and increases in fuel expenditure due to global price increases.
2.22In 2021-22, Defence’s administered result reported a net cost of services of $9.3billion, which remained steady compared to 2020-21. Defence recognised $78.2million in dividends and $35.6million in competitive neutrality revenue on behalf of the Australian Government from Defence Housing Australia.
Conclusion
2.23The committee considers the report to be ‘apparently satisfactory’.
Department of Veterans’ Affairs
Tabling of report
2.24The Department of Veterans’ Affairs Annual Report 2021-22 was tabled in the Houseof Representatives on 8 November 2022 and the Senate on 21November2022. The report was submitted to the minister on 27September2022.
Secretary’s review
2.25The Secretary of the Department of Veterans’ Affairs (DVA), Ms Liz Cosson AMCSC, noted in her review that DVA’s services and support are constantly evolving to ensure veterans and families are looked after through their transition to civilian life, and beyond. She also noted that, similar to other agencies and organisations around the world, DVA had to constantly adapt to the changing landscape caused by the COVID-19 pandemic.
2.26Ms Cosson outlined several of DVA’s achievements and priorities during the reporting period, which included:
DVA’s efforts to reduce claims processing backlogs and wait times;
the establishment and continued operation of six Veterans’ and Families hubs located in Perth, Townsville, Adelaide, Nowra, Wodonga and Darwin;
the Royal Commission into Defence and Veteran Suicide, highlighting DVA’s continued support of veterans and families; and
a return to commemorations due to COVID-19 restrictions being eased.
2.27Looking ahead, Ms Cosson indicated DVA will be ready to implement the Australian Government’s response to the interim report into Defence and Veteran Suicide. The key aspects of this report will require a focus on legislative reform, eliminating the claims backlog and shaping a better veteran and family experience with DVA.
2.28To assist with this, the 2021 Census included a question on service in the ADF giving DVA a better understanding of the veteran population.
Performance reporting
2.29DVA’s performance reporting framework is set out in the Department of Veterans’ Affairs Corporate Plan 2021-22 (DVA Corporate Plan) and the Department of Veterans’ Affairs Portfolio Budget Statements 2021-22 (DVA PBS). The DVA PBS outlines the department’s three outcomes and the programs related to each of them, as well as several performance criteria:
maintain and enhance the financial wellbeing and self-sufficiency of eligible persons and their dependants through access to income support, compensation, and other support services, including advice and information about entitlements;
maintain and enhance the physical wellbeing and quality of life of eligible persons and their dependants through health and other care services that promote early intervention, prevention and treatment, including advice and information about health service entitlements; and
acknowledgement and commemoration of those who served Australia and its allies in wars, conflicts and peace operations through promoting recognition of service and sacrifice, preservation of Australia’s wartime heritage, and official commemorations.
2.30DVA undertook a review into its 2021-22 Corporate Plan and performance measures in early 2022:
The review identified areas of improvement for DVA’s key activities and performance measures to facilitate a clearer read and better reflect the alignment between performance measures and programs. As a result, DVA reissued the corporate plan in May 2022, with minor amendments to several performance measures and the removal of 5 performance measures as reported in the PBS. Amendments are explained in footnotes throughout these annual performance statements.
2.31Each purpose contains performance criteria by which DVA assess its performance. The performance statement in the annual report clearly sets out the relationship between the purpose and activities to demonstrate how success will be measured. Of DVA’s 46 performance measures, 21 of the targets were achieved, 23 were not achieved and two were unable to be reported on.
2.32Outcome 1 saw two of twelve timeliness measure targets met, six of twelve quality measure targets met, and one of seven client satisfaction targets met. DVA notes that the Client Benefits Division increased its staff numbers, with the majority of staff working on claims processing. The recruitment of staff has been challenging with recruitment targets difficult to meet due to pandemic lockdowns and tight labour markets, impacting the ability to train staff across the department.
2.33In Outcome 2, DVA met five of six quality measure targets, three of three timeliness measure targets and three of three customer satisfaction targets. DVA stated it remains committed to ensuring that clients have timely access to high-quality health care, counselling, and rehabilitation services; and to maintaining and developing services that support a level of independence.
2.34Outcome 3 saw one of three commemoration targets met with two results unable to be reported on. DVA noted the ongoing impacts of the COVID-19 pandemic (on suppliers and artisans), frequent rainfall, compromised supply chains and trade skill shortages impacted the repairs and rebuilds of official commemorations. This also impacted DVA’s capacity to inspect and meet maintenance and provisioning obligations.
Financial reporting
2.35DVA recorded a consolidated operating loss of $26.16 million. The loss includes an operating loss of $25.92 million and the Defence Service Homes Insurance (DSH) operating loss of $0.24 million. These losses exclude impact of depreciation, amortisation, and lease accounting treatment. As of 30 June 2022, the department’s total assets of $350.63 million exceeded total liabilities of $312.26 million.
2.36During the reporting period, DVA reported that its administered expenses were $21.25 billion. These expenses were primarily made up of:
$6.22 billion in personal benefits relate to various income support and compensation payments;
$3.81 billion in a range of health care payments from medical, hospitals to counselling and other wellbeing services;
$38.93 million for commemorations and recognitions programs; and
$11.10 billion to reflect movement in the provision of the Military Compensation Scheme (MCS) that relates to personal benefits and health care.
2.37DVA reported a total administered income of $15.10 billion, representing personal benefits and health care related recoveries and reimbursements ($19.90million) and gains from movement in MCS provisions ($15.08 billion). The gain was a result of rising interest rates which impacts the discounting of future cash flows.
Conclusion
2.38The committee considers the report to be ‘apparently satisfactory’.
Army and Air Force Canteen Service
Tabling of the report
2.39The Army and Air Force Canteen Service Annual Report 2021-22 was tabled in the Senate on 25 January 2023 and the House of Representatives on 6 February 2023. The report was submitted to the minister on 6 December 2022.
Message from the Chair and Managing Director
2.40In their opening message, the Chair, Glenn Kirk, and Managing Director, TimManic, provided an insight into the challenges, pressures, and adversity the Army and Air Force Canteen Service (AAFCANS) has faced in supporting troops and ADF base personnel in the recent flood-affected regions, as well as the ongoing effects of COVID-19.
2.41In an effort to combat and service the recent demand presented from the issues mentioned above, Mr Kirk and Mr Manic reported the following achievements over the fiscal year 2022 (FY2022):
the broadening of contemporary and healthy food and beverage options with additional vegetarian, vegan and superfood choices;
investing in the improvement and replacement of mobile amenity vehicles (MAV), inclusive of lithium technologies and tap and go coffee with an additional four vehicles deployed around Australia; and
recording an FY2022 revenue in excess of $31 million.
2.42Moving forward, AAFCANS intends to further improve its Environmental,Social and Governance plan through its partnership with the ‘War on Waste’ platform currently in place at RAAF Williamtown, to enable the transition to more environmentally sustainable materials. AAFCANS also described FY2022 to be its year for ‘resetting our business model’, under its new four-year strategic plan. This strategic plan focuses specifically on people, sustainability, business innovation and growth as key foundations to achieve its business model and create sustainability whilst supporting Defence capability.
Performance reporting
2.43As described in the Army and Air Force Canteen Service Corporate Plan 2021-22 (AAFCANS Corporate Plan), AAFCANS is a self-sustaining ‘not-for-profit’ corporate Commonwealth entity that was established to support the ADF in the provision of quality food, beverage, and other retail services. AAFCANS also provides additional services including, but not limited to: post offices, banks, barbers, and dry cleaners.
2.44Within AAFCANS’ Corporate Plan, four targets are set within the performance measure matrix, which are ongoing measures set out to be achieved each year over a five-year period. These targets are to:
benchmark retail selling prices (RSP) against external target market to show AAFCANS in the bottom to mid quartile of coffee sales prices and in the middle quartile of snack item sales prices;
target a team member turnover rate of less than 38 per cent compared to an industry average of over 40 per cent;
upgrade or establish at least two retail facilities (including satellite kiosks and mobile food vehicles) each year. This may be dependent upon funding from Defence and infrastructure processes within the Defence Estate and Infrastructure Group; and
deploy on request in support of at least two of the three major exercises (Exercise Pitch Black, Talisman Sabre and Hamel).
2.45In AAFCANS’ Annual Report, mostly positive results were reflected in relation to its four target measures, achieving all but one measure. With the average team member turnover rate sitting at 65 per cent, the target of less than 38 per cent team member turnover rate was not met. AAFCANS stated:
Like most businesses in Australia, AAFCANS are finding it difficult to recruit and retain team members, especially within the first 12 months of employment. A lot of new employment initiatives have been introduced to attract employees. We are hopeful to improve this measure however the industry forecasts ongoing difficulties for at least two years.
2.46The committee looks forward to the implementation of the new initiatives.
2.47In relation to supporting major exercises, AAFCANS noted that only the Talisman Sabre exercise was run by Defence during the year in review, whilst it did provide support to that exercise. Support was also provided to the Lone Pine Barracks Family Day and Australian Defence Force Academy (ADFA) events. It is noted that AAFCANS is actively seeking to provide regular support to the ADF.
Financial reporting
2.48AAFCANS recorded a net services cost totalling $31.4 million and an own-source total revenue of $31.1 million resulting in a financial year 2022 net deficit of $0.21 million.
2.49Additionally, AAFCANS reported a gross profit increase from 42.5 per cent in the previous financial year 2021 to 43.4 per cent in the 2022 year in review. This was due to a mixture of renegotiating supplier agreements and higher margin categories as stated in the annual report.
2.50Due to the recent flooding in New South Wales and Queensland and the continuing effects of COVID-19, AAFCANS reported a decrease in sale volumes. Normal sales volumes resumed during May and June of 2022.
2.51AAFCANS also reported an asset investment of $417 000 towards MAV’s, computer hardware and plant equipment.
Conclusion
2.52The committee considers the report to be ‘apparently satisfactory’.
Australian Strategic Policy Institute
Tabling of the report
2.53The Australian Strategic Policy Institute Annual Report 2021-22 was tabled in the Senate on 22 December 2022 and the House of Representatives on 6 February 2023. The report was submitted to the minister on 28 October 2022.
Message from Chairman and Executive Director
2.54In their review, Chairman Kenneth Gillespie and Executive Director Justin Bassi, discussed the global events guiding the 2021-22 annual report, including:
the withdrawal of defence forces from Afghanistan;
the trilateral security partnership between Australia, the UK and the US (AUKUS);
continued participation and deepening ties in the Quad partnership, including the first in-person Quad Leaders’ Summit bringing together the leaders of India, Japan, Australia, and the US;
Russia and China declaring a ‘no limits’ partnership;
the ongoing war in Ukraine;
China’s increased security ambitions in the Pacific, including a security partnership with the Solomon Islands;
increased tensions in the Taiwan Strait; and
the Australian Government’s announcement of the Defence Strategic Review.
2.55ASPI discussed its role in providing independent input to government on major strategic and defence decisions, nourishing public debate and nurturing professional strategic policy expertise. ASPI has refined its processes around data-driven, long-term research to adapt to the shorter, quick turnaround analysis used to inform decision-makers and help strengthen public debate. ASPI has held more public and private events, and professional development programs to assist in the processes around shot-turnaround timeframes.
2.56ASPI has used relevant expertise, policy depth and unique research capability to assist Australia and the Indo-Pacific tackle the current security challenges and counter emerging difficulties. To achieve this, ASPI has conducted work into defence policy, military capability and deterrence, the geopolitical climate and security, cyber, space, hybrid and greyzone threats, disinformation, and propaganda, countering foreign interference, coercion, and extremism.
2.57The Chairman and Executive Director noted ASPI’s research was cited in the United Nations (UN) High Commissioner for Refugees report about the human rights and security situation in Xinjiang, China. ASPI was the first global institute to reveal the extent of the abuses (mass detention, forced labour, persuasive surveillance technologies and cultural destruction) through satellite imagery and data analysis techniques for which ASPI has become renowned.
2.58ASPI delivered its annual Cost of Defence report, endeavouring to examine and explain the defence budget in a way that is accessible for the Australian public and defence stakeholders. The 2022 report analysed significant increases in acquisition despite the global disruptions to supply chains during the COVID-19 pandemic.
2.59Looking ahead, ASPI will be building capacity as well as focusing on new areas with a greater priority on the Pacific Islands region, Southeast Asia and India. ASPI will also be deepening thematic analysis on various topics including climate security, space, and defence policy.
Performance reporting
2.60ASPI has five objectives (called purposes in its annual report) as outlined in the Australian Strategic Policy Institute Corporate Plan 2021-25. In measuring performance, ASPI measures achievements, records who benefits and outlines what was achieved in 2021-22. The five purposes are as follows:
Conducting research and publishing relevant outputs. ASPI measured performance in this purpose by counting the number and types of publications. ASPI, through a series of five publications, produced 51 pieces benefiting the public by providing information and analysis on a full range of strategic, defence and national security issues facing Australia over the coming years.
Provide government with an alternative source of strategic policy ideas and advice. This purpose was measured by participation in government advisory committees, expert panels and submissions to parliamentary inquiries. ASPI reported its staff were invited to participate in three government advisory committees and expert advisory panels. ASPI also provided three submissions to parliamentary inquiries:
- two submissions to the Parliamentary Joint Committee on the Australian Commission for Law Enforcement Integrity for its inquiry into the Expansion of ACLEI’s jurisdiction and the corruption vulnerabilities of law enforcement agencies’ contracted services and Impact of illicit drugs being traded online; and
- the Senate Standing Committee on Legal and Constitutional Affairs for its inquiry into the adequacy and efficacy of Australia’s anti-money laundering and counter-terrorism financing regime.
Stimulate public discussion on key aspects of defence and security policy. ASPI measures its performance by the number and range of ASPI public events, published opinion pieces, examples of media coverage contributing to national debate, website, The Strategist and social media usage. ASPI conducted 84 events in the reporting period and 60 opinion pieces written by ASPI staff were published, including examples of media coverage and social media usage in the annual report.
Promote international understanding. ASPI measures their international understanding by its ranking in University of Pennsylvania’s Global Go To Think Tank Index, invitations to speak at international conferences, links with overseas think tanks, international visiting fellowships, participation in hosting of international dialogues. The Think Tank Index was not available at the time of printing however, ASPI ranked 11th in the Top Defence and National Security category for 2021. ASPI staff attended six international conferences and ASPI hosted one visiting fellow. ASPI hosted 11 dialogues and engaged with 40 other think tanks.
Develop expertise. ASPI measures this purpose by the number of interns it supports, the number of published pieces by interns and participants in ASPI professional development courses. ASPI hosted ten interns for the reporting period 2021-22 and had seven published pieces by interns. ASPI conducted 34 courses and workshops for the reporting period.
Financial reporting
2.61The Directors’ Report gives an overview of the financial performance of ASPI for the reporting period 2021-22. The report outlines that the principle activity of ASPI was to:
encourage and inform public debate and understanding of Australia’s strategic and defence policy choices;
provide an alternative source of policy ideas to government;
nurture expertise in defence and strategic policy; and
promote international understanding of Australia’s strategic and defence policy perspectives.
2.62ASPI reported the operating result for the 2021-22 period was a surplus of $418592 (down from the 2020-21 surplus of $4.51 million). In the 2020-21 period, an additional $5 million was received from Defence to support the activities of ASPI in Washington DC, this has largely contributed to the decreased revenue in the 2021-22 reporting period. Expenses also increased $881 126 from the previous financial year, due to increased salary, consultants, and travel.
2.63ASPI expects to maintain a steady growth in output and activities, particularly with the establishment of the Washington DC office and the reiteration of the Sydney Dialogue.
Other matters
2.64The committee notes ASPI only referred to the relevant chapter in the report for the required information, not page numbers. Although not prescribed in the PGPA Rule, the inclusion of precise page references in the list of requirements enhances access to the information and assists in the examination of annual reports, as noted in previous reports.
Conclusion
2.65The committee considers this report to be ‘apparently satisfactory’.
Foreign Affairs and Trade Portfolio
Australian Centre for International Agricultural Research
Tabling of the report
2.66The Australian Centre for International Agricultural Research (ACIAR) AnnualReport 2021-22 was tabled in the Senate on 21 November 2022 and the HouseofRepresentatives on 7 November 2022. The report was submitted to the minister on 13 October 2022.
Chief Executive Officer review
2.67In his review for 2021-22, the Chief Executive Officer (CEO) ProfessorAndrewCampbell FTSE, FAICD, noted it was 40 years since the establishment of ACIAR. A two-part assessment of 40 years of research was released with a demonstrated benefit of $64 billion and $3.7 billion benefiting Australia.
2.68The CEO noted the following achievements:
collaboration with global partners and ACIAR’s participation in global events, including the Convention on Climate Change Conference of the Parties (COP26);
ACIAR’s conclusion as chair of the Global Research Alliance for Agricultural Greenhouse Gases (GRA);and
discovering a seaweed species to boost the immunity of farmed fish as a powdered additive to fish diets and discovering the true cause of faba bean gall disease (which causes up to 100 per cent fatality of the crop).
2.69The CEO’s review also outlined ACIAR’s objectives, global research collaborations, bilateral and regional research partnerships (including research highlights), capacity building and a view to the year ahead. Looking ahead, ACIAR plans to participate in COP27, strengthen and broaden the partnership with their sister organisation the International Development Research Centre in Canada, and facing the global challenges of climate change, COVID-19 and conflicts.
Performance reporting
2.70ACIAR’s performance reporting is set out in the Australian Centre for International Agricultural Research’s 2021-22 Corporate Plan (ACIAR Corporate Plan) and the Australian Centre for International Agricultural Research’s 2021-22 Portfolio Budget Statements (ACIAR PBS). These documents set out ACIAR’s outcome and program administered beneath it:
To achieve more productive and sustainable agricultural systems for the benefit of developing countries and Australia through international agricultural research and training partnerships.
2.71ACIAR has measured performance against three criteria of:
global research collaborations;
bilateral and regional research projects through 10 research programs; and
scientific and policy capability building activities.
2.72These criteria are measured by:
exceeding expectations;
meeting expectations; and
not meeting expectations.
2.73Global research collaborations had four areas monitored with an aim of achieving a ‘meeting expectations’ rating. ACIAR achieved three ‘exceeding expectations’ and one ‘meeting expectations’ in this performance measure. The ‘meeting expectations’ was achieved in ACIAR’s ‘influence as a donor’ with an aim to be represented on 50–90 per cent of the governance bodies overseeing multilateral research, ACIAR achieved 60 per cent.
2.74Bilateral and regional research projects performance had six areas monitored with ‘meeting expectations’ achieved in five areas and one ‘exceeding expectations’. The ‘exceeding expectations’ was achieved through an assessment of cost-benefit studies achieving a ratio of 3:1 or higher with 100percent of studies during the reporting period achieving higher than the required 3:1 ratio.
2.75The final performance measure, scientific and policy capability-building activities, had six areas monitored. ACIAR achieved ‘exceeding expectations’ in all six areas.
Financial reporting
2.76ACIAR’s net operating result for the 2021-22 reporting period was a $0.705million deficit. This was down on the $0.894 million surplus in the2020-21 reporting period. Revenue included $9.362 million supplemented by other income of $1.892 million and minor gains of $0.002 million.
2.77ACIAR’s total expenditure for the reporting period was $11.961 million which represented an increase on the 2020-21 expenditure of $10.586 million. ACIAR noted this included staff costs of $6.720 million, operating expenses of $3.683million and depreciation, amortisation, and other asset write-downs of $1.489 million.
2.78ACIAR reported their administered activity for the reporting period was $91.191million, an increase on the 2020-21 activity of $87.346 million. ACIAR received an additional $10.080 million primarily under separate agreements or records of understanding with external parties.
Other matters
2.79The committee notes ACIAR had information required by the PGPA Rule, however ACIAR only referred to the first page number to find the relevant information in the index even when information spread across multiple pages. To enhance the access to information and to assist in the examination of annual reports, the committee encourages ACIAR to refer to all pages where the information can be found.
Conclusion
2.80The committee considers this report to be ‘apparently satisfactory’.
Senator Raff Ciccone
Chair
Labor Senator for Victoria