List of Recommendations

Recommendation 1

2.10

The Committee recommends that, should the Australian National Audit Office audits of the financial statements of the National Disability Insurance Agency and the Department of Education and Training for the period ended 30 June 2017 result in any significant audit findings, whether new or unresolved from 2015-16, these entities promptly report back to the Committee on progress in responding to such findings, including actions taken on this matter by the entity’s audit committee.

Recommendation 2

2.14

The Committee recommends that, should the Australian National Audit Office audits of the financial statements of the Australian Taxation Office and the Department of Defence for the period ended 30 June 2017 result in any significant or moderate audit findings, whether new or unresolved from 2015-16, these entities promptly report back to the Committee on progress in responding to such findings.

Recommendation 3

2.16

The Committee recommends that:

the Northern Land Council report back to the Committee on progress in responding to the two significant legislative breaches reported by the Australian National Audit Office (ANAO) in Audit Report No. 33 (2016-17), including actions taken on this matter by the Council’s audit committee

should the ANAO audit of the financial statements of the Council for the period ended 30 June 2017 result in any significant legislative breaches being reported, whether new or unresolved from 2015-16, the Council promptly report back to the Committee on progress in responding to such findings

Recommendation 4

2.24

The Committee recommends that the Department of Finance, consistent with previous practice:

re-establish a formal requirement for disclosure of senior executive remuneration by Commonwealth entities (including, without limitation, Government Business Enterprises), with this requirement to be duly reflected in the relevant legislation and guidance

ensure that the relevant disclosure is published in entity annual reports

Recommendation 5

2.25

In terms of the reinstated disclosure of senior executive remuneration by Commonwealth entities (including, without limitation, Government Business Enterprises), the Committee recommends that the Department of Finance report back to the Committee on:

how and when this information might be published in entity annual reports, consistent with previous practice

options to further strengthen remuneration disclosure requirements, giving particular consideration to the requirements for ASX listed entities and/or the practice of the ASX

what formal guidance and/or legislative instruments have been or need to be updated to reflect such changes

how and when it will update the PGPA Rule 2014 and PGPA Financial Reporting Rule 2015 on this matter, including the ‘Guide’ to section 27 ‘Senior management personnel remuneration’

how and when it will update the relevant Resource Management Guidance and Government Business Enterprise guidelines as regards this matter

Recommendation 6

2.33

The Committee recommends that the Department of Finance note the Committee proposes the following matters be considered as part of the independent review of the Public Governance, Performance and Accountability Act 2013 (PGPA Act):

reporting on contracts, contractors and consultancies under the annual report provisions of the PGPA Rule 2014 and the PGPA Financial Reporting Rule 2015

bringing forward the delivery and publication of Commonwealth entity annual reports

further enhancing the effectiveness of entity audit committees

Recommendation 7

2.36

The Committee recommends that the Department of Finance, in consultation with the Australian National Audit Office, work to:

develop appropriate and robust performance targets or benchmarks, which can be publicly reported, to enable Commonwealth entities to assess their own financial sustainability against agreed parameters over time and against like entities

provide the Committee with a timeline and milestones for implementation of this initiative

| Contents |