2.1
Senate Standing Order 25(20)(b) provides for the committee to consider selected reports in more detail. Annual reports of the following entities were selected for this report:
Wreck Bay Aboriginal Community Council—Report for 2020–21;
Australian Naval Infrastructure Pty Ltd—Report for 2020–21; and
Digital Transformation Agency—Report for 2020–21.
Wreck Bay Aboriginal Community Council
2.2
Wreck Bay Aboriginal Community Council (WBACC) is a Corporate Commonwealth entity established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 (Land Grant Act) and subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act), as part of the Prime Minister and Cabinet portfolio.
2.3
WBACC’s primary function is to provide services to the Aboriginal community of Jervis Bay. WBACC’s Corporate Plan 2020–21 sets out its vision for the forward period:
WBACC seeks to be a respected, equal and valued part of a culturally diverse Australian society. By controlling and managing its own lands and waters, the Community aims to become self-sufficient and able to freely determine its future and lifestyle. The Community desires to do this by protecting its interests and values while preserving for future generations its unique identity, heritage and culture.
Compliance
2.4
WBACC’s annual report for 2020–21 was submitted to the then Minister for Indigenous Australians, the Hon Ken Wyatt AM, MP, on 16 November 2021. It was tabled on 8 February 2022 in the House of Representatives and presented out of sitting on 4 February 2022 to the Senate.
2.5
The committee notes that WBACC’s annual report was not submitted to the minister in the required timeframe. The committee again encourages Commonwealth entities to prepare annual reports in accordance with the timeframe outlined by the PGPA Rule or the relevant enabling legislation. However, the committee found the annual report to be compliant with the remainder of its reporting requirements.
Performance
2.6
WBACC’s Corporate Plan 2020–21 lists its performance objectives as follows:
to manage and maintain Aboriginal Land by protecting and conserving natural and cultural sites on Aboriginal Land;
engage in land use planning;
provide services to Community members;
conduct business enterprises for the economic/social benefit of the Community;
increase employment of community members; and
restructure WBACC business entity to better algin with the stated business and employment outcomes of the organisation.
2.7
WBACC’s performance statements were prepared in accordance with subsection 39(2) of the PGPA Act. The annual report provides a comprehensive table that outlines the delivery strategy, resourcing, performance monitoring and measurement, results and next steps of each of the objectives.
Financial
2.8
WBACC's annual report included financial statements, which were prepared as required by section 42 of the PGPA Act, and in accordance with section 17AD of the PGPA Rule and the Australian Accounting Standards—Reduced Disclosure Requirements. The financial statements received an unqualified assurance report from the Australian National Audit Office (ANAO).
2.9
WBACC is primarily funded by own-source revenue and grants from the Commonwealth government. Notable grants mentioned in the Chairperson’s Report in the annual report included:
the Indigenous Advancement Strategy, a three-year funding agreement for jobs, land, and the economy with the National Indigenous Australians Agency (NIAA);
grant funding for land council and local government activities from the Department of Infrastructure, Transport, Regional Development and Communications; and
grant funding for WBACC’s day-care centre, Gudjahgahmiamia, from the Department of Education.
2.10
WBACC reported an operating surplus of $1.4 million for 2020–21. This result follows an operating deficit of $524 thousand for the previous financial year.
Committee view
2.11
The committee found WBACC's annual report to be well-structured and informative. For the purposes of its report to the Senate, the committee considers WBACC's annual report to be 'apparently satisfactory'.
Australian Naval Infrastructure Pty Ltd
2.12
Australian Naval Infrastructure Pty Ltd (ANI) is a Commonwealth Company and a Government Business Enterprise (GBE), classified as a Public
non-Financial Corporation, operating within the Finance portfolio.
2.13
ANI’s stated primary purpose is to support the Commonwealth’s continuous naval shipbuilding program through:
acquiring, holding, managing and developing the infrastructure and related facilities used in connection with this program, and
efficiently and effectively managing this infrastructure (including providing access) in a manner that ensures an integrated and coordinated approach to the delivery of all aspects of this program.
Compliance
2.14
ANI’s annual report for 2020–21 was submitted to the then Minister for Finance, Senator the Hon Simon Birmingham, and the then Minister for Defence, The Hon Peter Dutton, MP, on 13 October 2021. It was tabled on 25 October 2021 in the House of Representatives and presented out of sitting on 22 November 2021 to the Senate.
2.15
ANI prepared its annual report under the requirements of the PGPA Act and Rule and the Corporations Act 2001. As a GBE, ANI has additional disclosure requirements under section 28F of the PGPA Rule, relating to changes in financial conditions, dividend payments, community service obligations and commercially prejudicial information. There were no significant changes to the company’s business during the reporting period.
2.16
The committee found the ANI annual report to be compliant in each of its reporting requirements.
Performance
2.17
ANI’s annual report and corporate plan both outlined the entity’s priorities for the 2020–21 period:
turnover of the new Osborne South shipyard to BAESMA [BAE Systems Maritime Australia] in readiness for prototyping to commence in December 2020
progressing Osborne South modernisation works, specifically the conversion of an existing fabrication hall (Building 2) into a new pipe workshop, on schedule and on budget
progressing design and delivery of the ONDP [Osborne North Development Project] Phase 1 (CSPIF [Combat Systems Physical Integration Facility] and PLBTF [Platform Land Based Test Facility]) Works
progressing ONDP Phase 2 planning and delivery of initial site works for the hull manufacturing facilities and submarine consolidation hall
safely undertaking block moves in support of the OPV [Offshore Patrol Vessel] Program, and
progressing access agreement negotiations.
2.18
ANI's annual report stated that all its performance targets, as listed above, for 2020–21 were met and addressed how these targets were met in the Chair and CEO's letter, overview of operations, and the directors' report.
Financial statements
2.19
ANI’s annual report included financial statements which were prepared in accordance with the Corporations Act 2001, as well as complying with Australian Accounting Standards, the International Financial Reporting Standards and other mandatory professional reporting requirements. The statements received an unqualified assurance report from the ANAO.
2.20
ANI reported an operating loss for the period of $5.2 million and a comprehensive income of $36.2 million.
2.21
An assessment of significant changes that affected the above financial outcome was provided. ANI reported that its financial performance was particularly affected by the following:
significant increase to revenue due to increase in lease income;
increase in net value of non-financial assets due to external on-site valuation of land, buildings and infrastructure;
capital cash expenditure cash flows were lower than the previous financial year due to substantial completion of activity; and
Commonwealth debt forgiveness.
2.22
Under PGPA Rule 28F(1)(a)(ii), ANI is required to detail any significant event or risk that could cause marked change in future operations or financial conditions. The announcement of the trilateral security partnership between Australia, the United Kingdom and the United States of America (AUKUS) announced on 16 September 2021 includes the acquisition of eight nuclear powered submarines, superseding the previous Attack Class Submarine Project. Some of ANI’s operations have consequently been placed on hold pending advice from the Government on the requirements of the new project. Given this condition was not known at the time of reporting, ANI specified that it was not able to ‘reliably estimate the future financial impact of this event’.
Committee view
2.23
The committee found ANI’s annual report to be well-presented and provided a comprehensive overview of the entity’s 2020–21 operations. For the purposes of its report to the Senate, the committee considers the company's annual report to be 'apparently satisfactory'.
Digital Transformation Agency
2.24
The Digital Transformation Agency (DTA) is a non-corporate Commonwealth entity and executive agency subject to the PGPA Act. At the time of presenting its 2020–21 Annual Report, the DTA fell within the PM&C portfolio. Moving forward, the DTA will become part of the Finance portfolio.
2.25
The DTA’s mission as stated in its Parliamentary Budget Statement (PBS) 2020–21 is to:
…accelerate the government’s digital transformation agenda by helping agencies move more services online, deliver a better user experience and ensure the best use of government’s information and communication technology spend.
Compliance
2.26
The DTA’s annual report for 2020–21 was submitted to the then Minister for Employment, Workforce, Skills, Small and Family Business, the Hon Stuart Robert MP, on 11 October 2021. It was tabled on 28 October 2021 in the House of Representatives and presented out of sitting on 22 November 2021 to the Senate.
2.27
The annual report was prepared in accordance with section 46 of the PGPA Act. The report presented information which was relevant, reliable, concise, clear and balanced and included the required aids to access. However, the committee would prefer that the compliance index refer to specific page numbers, instead of listing report chapters. The committee found the report to be compliant with each of its reporting requirements.
2.28
Listed below is information that was provided on the most significant developments in external scrutiny on the DTA, and the DTA’s response to said scrutiny.
External scrutiny
2.29
The DTA noted that at the time of reporting, the ANAO Performance Audit of the Establishment and use of IT-related procurement panels, which includes panels managed by the DTA, had yet to be tabled in Parliament. It notes that it was not subject to any further audits and has implemented all recommendations from previous audits.
2.30
The DTA reported that for the reporting period it appeared before the Finance and Public Administration Legislation Committee during Senate estimates on 24 May 2021 for Budget Estimates 2021–22. It also appeared before three other inquiries during the reporting year: the Select Committee on COVID-19, the Select Committee on Financial Technology and Regulatory Technology and the Finance and Public Administration References Committee.
Performance
2.31
The DTA prepared annual performance statements in accordance with paragraph 39(1)(b) and 34(4) of the PGPA Act. The performance statement accurately presents DTA’s performance as required by section 39(2) of the PGPA Act.
2.32
The DTA’s four priorities are outlined in its Corporate Plan 2020–21. The outcomes of each of the priorities are subsequently measured and reported on in the annual report against performance measures and targets that are also outlined in the corporate plan as well as the DTA’s PBS 2020–21.
2.33
The DTA reported that machinery of government changes and COVID-19 had a large impact on its performance and operations, but that it nevertheless achieved its purpose to make government services ‘simple, clear and fast’. Some of the results achieved by the DTA are considered below in further detail.
Priority 1: Lead whole-of-government digital and ICT strategies, policies and advice that enables modern, efficient and joined-up government services.
2.34
Results of the DTA’s performance with regard to priority 1 include:
completing 98 of 119 roadmap initiatives identified in the Digital Transformation Strategy released in November 2020;
collaborating with 32 agencies on 79 digital and ICT-enabled initiatives;
reviewing and advising on numerous new policy proposals;
development of products in collaboration with 34 agencies to deliver government services;
progression of the Hardening Government IT Initiative as the whole-of-government coordination lead;
coordination of the COVIDSafe contact tracing app; and
establishment of numerous committees and forums to assist in the provision of high-quality ICT advice and services.
Priority 2: Coordinate whole-of-government common platforms, technologies and services to enhance the user experience.
2.35
Results of the DTA’s performance with regard to priority 2 include the progression of the Digital Identity Program and enhancements to myGov. As at 30 June 2021 more than 2.73 million digital identities have been created. DTA’s key achievements for this included:
the integration of Digital Identity with myGov supporting more than 300,000 people to access their myGov accounts using their myGovID;
the release of digitalidentity.gov.au to support broader communication of the benefits of Digital Identity to users;
2 public consultation rounds to support the development of the Digital Identity Legislation; and
the technical onboarding of 4 Australian Government services, 3 state government connections and 1 attribute provider.
Priority 3: Build the digital profession to enhance digital and ICT skills and capabilities across the APS.
2.36
The DTA reported the following outcomes regarding priority 3:
launched the Digital Professional Stream Strategy
increased the APS digital capacity through the Emerging Talent program
updated the Style Manual; and
implemented improvements to the Gov.au Observatory, resulting in increased usage and an estimated $3.82 million in savings for the Commonwealth per annum.
Priority 4: Collaborate and partner with others, nationally and internationally, to accelerate the digital transformation of government services.
2.37
The DTA reported the following outcomes regarding priority 4:
increased collaboration with states, territories, industry and private sector, and internationally to support to Digital Identity program;
participation in international forums including the Organisation for Economic Co-operation and Development (OECD) ELeaders meetings and the OECD Digital Government Index Working Group;
continued participation in the quarterly International Data Analytics Forum and the Cross-Jurisdictional Digital Transformation Forum; and
chairing of the Digital Leadership Committee by the DTA’s CEO, an event which included senior technical and business leaders from 20 government agencies.
Financial statements
2.38
The DTA prepared financial statements in accordance with subsection 42(2) and 41(2) of the PGPA Act, the PGPA Rule and the Australian Accounting Standards and Interpretations.
2.39
The DTA recorded a comprehensive income of $50.7 million in 2020–21, an increase on $9.4 million from 2019–20. It attributed this outcome to ‘savings and administration fees achieved from whole-of-government ICT procurement’ and ‘revenue received from other Commonwealth agencies’.
Committee view
2.40
The committee found that the DTA’s annual report was well-presented and informative. Its performance reporting succinctly married the information between its corporate plan and PBS, and algins with the Commonwealth Resource Management Framework’s clear read principle. For the purposes of its report to the Senate, the committee considers the company's annual report to be 'apparently satisfactory'.
Senator Louise Pratt
Chair