Chapter 3Annual reports of Commonwealth entities and companies

3.1The committee has selected the 2022–23 annual reports of the following entities for closer examination:

the Australian Commission on Safety and Quality in Health Care (ACSQHC);

Food Standards Australia New Zealand (FSANZ);

Hearing Australia; and

the National Disability Insurance Agency (NDIA).

Australian Commission on Safety and Quality in Health Care

3.2The ACSQHC’s role is codified in the National Health Reform Act 2011 to lead and coordinate national improvements in the safety and quality of healthcare.[1] The ACSQHC commenced as an independent statutory authority on 1 July 2011 and is jointly funded by the Australian Government and state and territory governments.[2]

3.3The functions of ACSQHC are also specified in section 9 of the National Health Reform Act 2011 and include:

formulating standards, guidelines and indicators relating to healthcare safety and quality matters;

advising health ministers on national clinical standards;

promoting, supporting and encouraging the implementation of these standards, and related guidelines and indicators;

monitoring the implementation and impact of the standards;

promoting, supporting and encouraging the implementation of programs and initiatives relating to healthcare safety and quality;

formulating model national schemes that provide for the accreditation of organisations that provide healthcare services, and relate to healthcare safety and quality; and

publishing reports and papers relating to healthcare safety and quality.[3]

3.4In achieving its purpose, ACQSHC has four strategic priorities that are informed by its functions. These are:

safe delivery of health care;

partnering with consumers;

partnering with healthcare professions; and

quality, value and outcomes.[4]

Report from the Chair

3.5Professor Villis Marshall AC, Chair of the ACSQHC, reported on ACSQHC’s key areas of work for 2022–23, which included:

the development of the National Safety and Quality Digital Mental Health Standards in response to the increased demand for mental health services;

the development of the Lower Back Pain Clinical Care Standard and the Cosmetic Surgery Standard; and

making their resources available to clinicians to improve the delivery of services to people with an intellectual disability, and an adaption of the design of the Australian Charter of Health Care Rights.

Report from the Chief Executive Officer

3.6Conjoint Professor Anne Duggan, Chief Executive Officer of the ACSQHC, discussed the ACSQHC’s ongoing work post-COVID-19 to ensure equity in health outcomes and providing consumers with safe and high-quality health care.[5] Other initiatives include:

commencing work on the Psychotropic Medicines in Cognitive Disability and the Chronic Obstructive Pulmonary Disease Clinical Care Standards;

starting accreditation for the Clinical Trials Governance Framework which sets the national standards for this work and brings trials into the established hospital accreditation process; and

taking up new responsibilities as part of changes to the Department’s Quality Use of Diagnostics, Therapeutics and Pathology Program.[6]

Performance reporting

3.7ACSQHC’s purpose is as follows:

[to] contribute to better health outcomes and experiences for Australians, and improve value and sustainability in the health system by leading and coordinating national improvements in the safety and quality of health care.[7]

3.8Under its four strategic pillars, ACSQHC outlined that all performance criteria are ‘achieved and ongoing’. ACSQHC also aligns its performance measures against its 2022–23 corporate plan and Health Portfolio Budget Statements. A summary of these results is as follows:

Source: ACSQHC, Annual Report 2022–23, pp. 65–69.

3.9As stated in its previous Report on Annual Reports No. 1 of 2023, the committee asked ACQSHC to provide context on how these results are calculated and assessed.[8] However, the committee notes that the Commission did not include this detail in its 2022–23 annual report. The committee encourages ACSQHC to consider outlining its methods for data collection to strengthen the credibility of outcomes. For instance, it would be useful for the reader to be able to clearly identify whether the data to inform outcomes was qualitative, quantitative or a mixture of both, and the reasoning behind the choice of methodology.

3.10The committee also notes that it previously asked ACSQHC to list its performance criteria against their corresponding strategic priorities.[9] However, in its 2022–23 annual report, ACSQHC still did not include these details, thus referring the reader to its corporate plan to gain further clarity on performance results.

Financial performance

3.11In 2022–23, ACSQHC’s expenses totalled $32.6 million and generated own-sourced income amounting to $32.8 million, with both figures increasing from the previous reporting period.[10] Much of the Commission’s own-source income stemmed from the following:

revenue from contracts with customers – $10.8 million;

Commonwealth Government contributions – $12.4 million;

state and territory government contributions – $8.8 million; and

interest – $710 000.[11]

3.12ACQSHC’s total assets were valued at $30.6 million and liabilities at $24.7 million, with a total equity valued at $5.9 million.[12] Significant expenses included:

employee benefits – $14.8 million;

suppliers – $16.1 million;

depreciation and amortisation – $1.7 million; and

finance costs – $62 000.[13]

Compliance index

3.13Under the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule), Commonwealth entities are required to include a compliance index (or a list of requirements) in annual reports.[14]

3.14In 2023, the committee drew the ACSQHC’s attention to several issues relating to its compliance index within its 2021–22 annual report, which have continued to persist and are re-examined below.[15]

3.15To reiterate, the PGPA Rule sets out legislation that stipulates the reporting requirements for all Commonwealth entities; however, ACSQHC has continued to incorrectly reference the Public Governance, Performance and Accountability Amendment (Corporate Commonwealth Entity Annual Reporting) Rule 2016 which was repealed on 8 May 2016.[16] This issue has permeated since the Commission’s 2017–18 annual report. Consequently, this creates several concomitant issues around transparency and quality assurance, such as:

creating a risk that specified items within the list of requirements have been inadvertently omitted;

being unable to verify up-to-date key information relating to:

the contents of the annual report;

the disclosure requirements for government business enterprises; and

difficulties identifying references where requirements have or have not been met.

3.16The committee strongly urges ACSQHC to accurately compile a list of requirements that reflects legislation that is currently in-force, namely, the PGPA Rule to aid transparency.

3.17The committee deems the Commission’s 2022–23 report to be apparently satisfactory.

Food Standards Australia New Zealand

3.18FSANZ’s role is codified in the Food Standards Australia New Zealand Act 1991 (FSANZ Act) to provide a high standard of public health protection throughout Australia and New Zealand, namely:

a high degree of consumer confidence in the quality and safety of food produced, processed, sold or exported from Australia and New Zealand;

an effective, transparent and accountable regulatory framework within which the food industry can work efficiently;

the provision of adequate information relating to food to enable consumers to make informed choices; and

the establishment of common rules for both countries and the promotion of consistency between domestic and international food regulation measures without reducing the safeguards that apply to public health and consumer protection.[17]

3.19The functions of FSANZ are also specified in section 13 of the FSANZ Act.[18]

Chief Executive Officer’s Year in Review

3.20Dr Sandra Cuthbert, Chief Executive Officer of FSANZ, reported on the agency’s key areas of work for 2022–23, which included:

commencing work on a secured food ministers’ agreement to 20 applications, two proposals and a review of the kava standard, resulting in a range of Australia New Zealand Food Standards Code amendments and strengthened standards;

progressing work on proposals to revise definitions for gene technology and new breeding techniques, reviewing infant formula, sports foods, caffeine and egg safety standards and considered labelling changes for added sugars on alcoholic beverages;

commissioning the development of a model to estimate the annual cost of foodborne illness in Australia;

coordinating the sampling for the national survey of antimicrobial resistant bacteria in food;

the customisation of a survey tool used in the Australian 2023 National Nutrition and Physical Activity Survey;

coordinating 93 food recalls, up from 79 in 2021–22 and above the ten-year average of 79 recalls;

engagement with a variety of stakeholders with the following initiatives undertaken:

establishing the Science and Food Safety Dialogue to build government collaboration among food safety and risk assessment agencies in the Asia–Pacific region, with the first meeting held in Singapore in April 2023;

continued leadership of a range of international projects, including the Association of Southeast Asian Nations (ASEAN) import maximum residue limit (MRL) project;

introduction of the Consumer Insights Tracker, an annual nationally representative survey of Australian and New Zealand consumers that will inform FSANZ’s standards development work and risk analyses and provide up to date trend data on key trust measures; and

a trial of the Citizen Space digital engagement platform to test new approaches to public and stakeholder consultation and build agency capacity and capability in digital engagement.[19]

Performance reporting

3.21FSANZ’s purpose is as follows:

The agency’s broad purpose is to contribute to the bi-national food regulation system by developing science and evidence-based standards, coordinating regulatory responses and providing information to the public about food standards. Under the Portfolio Budget Statements 2022–23, the agency’s outcome is a safe food supply and well-informed consumers in Australia and New Zealand.[20]

3.22According to FSANZ, it reports on its performance outcomes against the following three Portfolio Budget Statement (PBS) activities and four PBS performance measures, which is supplemented with additional agency-developed performance measures as listed in FSANZ’s 2022–23 corporate plan.[21]

3.23Under the four PBS and FSANZ performance measures, it appears that all targets are deemed as achieved. A summary of these results is as follows:

Source: FSANZ, Annual Report 2022–23, pp. 14–33.

3.24The committee appreciates FSANZ for providing additional performance area assessments under each of the three PBS key activities. For the purpose of this report, however, the above table only illustrates FSANZ’s performance outcomes under the main PBS-related criteria.[22]

3.25Similar to ACSQHC, the committee encourages FSANZ to consider outlining its methods for data collection to strengthen the credibility of outcomes. In its 2022–23 annual report, FSANZ incorporates a mixture of both quantitative and qualitative representations of its performance results. It would therefore be useful for the reader to understand how FSANZ’s performance results were calculated and the reason behind the choice of methodology.

3.26On page 21 the performance measures for ‘consumer trust in food labels and in the food regulation system’ are:

(a)percentage of respondents who responded positively about trust in the information on food labels; and

(b)percentage of respondents who report having confidence in FSANZ.[23]

3.27The 2022–23 results for the above measures were given as percentage figures. For example, ‘65.2 per cent of Australian consumers responded positively about trust in the information on food labels’.[24] However, in its annual report, FSANZ did not include a benchmark figure as a percentage of respondents, thus referring the reader to its corporate plan to gain further clarity on performance results.

3.28The committee also notes that it was difficult to ascertain at times the interaction between the PBS activities and performance measures and FSANZ’s own criteria. Further, it was often difficult to establish which of FSANZ’s additional performance areas corresponded to the relevant PBS performance criteria.

3.29The committee encourages FSANZ to consider simplifying its representation of results to promote flow for the reader and to elaborate, where necessary, on the agency’s approach to its data collection and methodologies for performance outcomes.

Financial reporting

3.30FSANZ’s income is jointly funded by the Australian and New Zealand governments.[25] In 2022–23, FSANZ’s cost recovery and project activity totalled $23.6 million (compared to $22.3 million in 2021–22), of which $23.5 million was expended primarily on employee costs.[26] FSANZ reported a surplus of $76 000, which was an improvement from the previous year’s deficit of $0.4 million.[27]

3.31FSANZ stated that its improvement in income for 2022–23 is attributable to the agency’s increase in own-source income driven by project income from other government agencies.[28] Also contributing to the increase was an improvement in interest earned on cash deposits.[29]

3.32The increase in expenditure from $22.9 million in 2021–22 to $23.5 million in 2022–23 reflects an increase in staffing costs associated with the government’s interim workplace relations policy.[30] FSANZ’s total assets were valued at $25.1 million and liabilities at $15.8 million, with a total equity valued at $9.3 million.[31]

Compliance index

3.33The committee notes that FSANZ’s list of requirements did not provide specific page references and instead references complete sections of its annual report. The committee encourages FSANZ to provide specific page references in its compliance check list to improve transparency and enhance overall visibility and accessibility of where reporting requirements have been satisfied in accordance with the PGPA Rule.

3.34The committee deems the FSANZ’s 2022–23 report to be apparently satisfactory.

Hearing Australia

3.35Hearing Australia is a corporate Commonwealth entity constituted under the Australian Hearing Services Act 1991 (AHS Act). The functions of the agency are codified in section 8 of the AHS Act, which include:

the provision of hearing services to voucher-holders under the Government’s Hearing Services Program and to designated persons eligible under the Community Service Obligations (CSO) Program (including children, young adults, adults with complex needs and Aboriginal and Torres Strait Islanders);

the provision of hearing services to Comcare clients and Commonwealth employees;

entering into arrangements for the supply, research, design and development of hearing services, including providing services to anyone with a hearing loss;

carrying out research; and

providing advice, education, training and consultancy services in relation to hearing services.[32]

Chair and Managing Director’s review

3.36The Chair, Ms Elizabeth Crouch AM and the Managing Director, Mr Kim Terrell, reported on Hearing Australia’s key areas of work for 2022–23, which included:

helping 282 902 children and adults across Australia through the provision of hearing assessments, devices, rehabilitation and referral services;

providing clinical hearing assessments to 14 435 young Aboriginal and Torres Strait Islander children as part of its Hearing Assessment Program – Early Ears (HAPEE) to improve the hearing health of First Nations children;

the establishment of 14 new hearing services centres and relocated another five;

working with over 100 Aboriginal Community Controlled Health Organisations to ensure its services met the needs of local communities and supported the development of local health workforces, delivering services to over 20 000 Aboriginal and Torres Strait Islander people in 2022–23;

continuing to support the Aboriginal and Torres Strait Islander Ear and Hearing Health Partnership Committee with capacity building and long-term improvements in the delivery of health services to First Nations people;

the development of its fifth Reconciliation Action Plan (RAP);

the introduction of a new ‘Hearing Australia’ range of hearing aids with new leading-edge technologies and software;

conducting its Hearing the Nation tour with over 1 200 events across Australia and providing free hearing checks;

the progression on the development of Hearing Australia’s new ICT systems to improve services, drive efficiencies and support the analysis of data; and

the National Acoustic Laboratories completing a record 29 projects involving over 4 800 participants and 48 international collaborators.[33]

Performance reporting

3.37Hearing Australia’s purpose is to ‘provide world leading research and hearing services for the wellbeing of all Australians’.[34]

3.38As outlined in its 2022–26 corporate plan, Hearing Australia uses three strategic pillars to measures its performance objectives.[35] These are:

delivering excellent outcomes;

providing great value to Government and our partners; and

being a high performing organisation.[36]

3.39Hearing’s Australia’s annual report outlines the results of key performance indicators against the above priorities and activities.

3.40Further, each strategic pillar encompasses a number of different priorities and specific activities. Compared to 2021–22, Hearing Australia has incorporated new priority areas to reflect changes in its operating environment.[37] These changes include enhancements to the agency’s technology and digital platforms to improve services and client experiences and building workforce capabilities.[38] In 2022–23, Hearing Australia made the following targeted investments to:

improve our product range and services;

provide more seamless and effective digital channels for our clients;

increase the accessibility of our services and hearing centres; and

provide our people with the skills and tools that will make them more effective and productive.[39]

3.41A summary of these results is as follows:

Source: Hearing Australia, Annual Report 2022–23, p. 43.

3.42The committee appreciates Hearing Australia’s detailed explanation of its strategic pillars and the relevant performance measurements. However, the committee notes that, specifically for performance measures six, eight and nine, the target is ‘achieved’.[40] The committee would appreciate further substantiation of these targets and results, as is shown in the other performance measures, in Hearing Australia’s future annual reports. For instance, for performance measurement eight, ‘research milestones’, the target simply states ‘achieved’ without explaining what the research milestones were, which was also missing in its detail on performance measurements on page 44.

Financial performance

3.43During 2022–23, Hearing Australia’s total revenue for the financial year was $284 million, which was $16 million or 5.6 per cent higher than the previous year.[41] This included $258.9 million from contracts with customers, $20 million from grant income and $5.1 million from other income.[42] Hearing Australia advised that the increase in its revenue was attributable to increased revenue from client services and was a record for the agency.[43] This increase was also achieved despite the ongoing effects of the COVID-19 pandemic.

3.44Hearing Australia explained that it produced an operating loss of $5.1 million in line with its corporate plan target, and stated that this was a result of ‘internal strategic investments in technology which will transform the organisation’s services’.[44]

3.45The committee commends Hearing Australia for continuing to provide a comprehensive breakdown of its financial performance detail and welcomes the level of detail in the notes to the financial statements. Particularly, the committee appreciates Hearing Australia’s explanations relating to its operating loss, which was anticipated, as a result of increased investment in new technologies.

Compliance index

3.46The committee notes that this is the third year that Hearing Australia’s list of requirements did not provide specific page references and, instead, references either complete sections or subsections of the annual report. In its previous report on annual report, the committee suggested that Hearing Australia provide precise references in its compliance checklist to improve transparency and enhance overall visibility and accessibility of where reporting requirements have been satisfied in accordance with the PGPA Rule.[45]

3.47The committee strongly encourages Hearing Australia actioning the above suggestion in its future annual reports. It deems that the agency’s 2022–23 report to be apparently satisfactory.

National Disability Insurance Agency

3.48The NDIA is a corporate Commonwealth entity, and its statutory functions are specified in section 118 of the National Disability Insurance Scheme Act 2013 (NDIS Act). These are:

delivering the National Disability Insurance Scheme (NDIS) so as to, amongst other things, support the independence, and social and economic participation, of people with disability and enable people with disability to exercise choice and control in the pursuit of their goals and the planning and delivery of their supports;

managing, and advising and reporting on, the financial sustainability of the NDIS;

developing and enhancing the disability sector;

building community awareness of disabilities and the social contributors to disabilities;

collecting, analysing and exchanging data about disabilities and the supports for people with disability; and

undertaking research relating to disabilities, the supports for people with disability and the social contributors to disabilities.[46]

Chair’s review

3.49Mr Kurt Fearnley AO, Chair of the NDIA, reported on the agency’s key areas of work for 2022–23, which included:

providing direct supports to more than 610 000 participants nationwide;

increases to the number of participants in paid work, including parents and carers of participants;

reducing the number of participants waiting for an external review through the continued implementation of an alternative resolution process to reduce the number of new Administrative Appeals Tribunal cases;

working with the broader Australian Government to improve the safe and timely discharge of participants from hospital;

partnering with the First Peoples Disability Network to co-design a new First Nations Strategy and action plan; and

continuing its co-design with participants and the disability community to inform the progress and development of the NDIS.[47]

Chief Executive Officer’s Review

3.50Ms Rebecca Falkingham PSM, Chief Executive Officer of the NDIA, commented on the agency’s progress and objectives leading into the second decade of the NDIS:

It has been a privilege to lead the NDIA over the past 9 months, particularly as this year marks 10 years since the NDIS began – from grassroots campaigning to becoming a reality. Since then it has grown to support more than half a million Australians. As a world first, the NDIS had no guidebook for getting it right; but as we head into the second decade, we will be guided by the outcomes of the Disability Royal Commission and the NDIS Review.

3.51Ms Falkingham discussed the NDIA’s key initiatives for 2022–23, which included:

in the lead-up to the Royal Commission and NDIS Review reports being released, working closely with participants and the wider disability community to deliver an operational reform program to reshape the NDIS; and

releasing two co-designed policies and programs – the Supported Decision-Making Policy and the Participant Safeguarding Policy.[48]

Performance reporting

3.52NDIA’s purpose is as follows:

[To] support individuals with a significant and permanent disability (participants) to be more independent and engage socially and economically, while delivering a financially sustainable NDIS that builds genuinely connected and engaged communities and stakeholders.[49]

3.53NDIA has five aspirations to its purpose statement which measures its strategic objectives and focus areas. These are:

(1)a quality experience and improved outcomes for participants;

(2)a competitive market with innovative supports;

(3)a genuinely connected and engaged stakeholder sector;

(4)a high-performing NDIA; and

(5)a financially sustainable NDIS.[50]

3.54Each of these five aspirations encompass a number of different performance measures and specific priorities. Similar to its 2021–22 annual report, the NDIA outlines this year’s targets and results, outcomes and methods for calculation. However, the committee notes that in its 2022–23 annual report, the NDIA has omitted the results from the previous reporting period. A summary of these results is as follows:

Source: NDIA, Annual Report 2022–23, pp. 25–26.

Source: NDIA, Annual Report 2022–23, p. 28.

Source: NDIA, Annual Report 2022–23, p. 30.

Source: NDIA, Annual Report 2022–23, p. 32.

Source: NDIA, Annual Report 2022–23, p. 35.

3.55The committee appreciates NDIA’s continued transparency, discussion and analysis of each performance result, including for targets that were not met and the agency’s commitment to improving results in the future.

Financial reporting

3.56During 2022–23, the NDIA’s expenses totalled $37 billion and generated own-source income amounting to $34.4 billion, with both figures increasing from the previous 2021–22 reporting period.[51] The NDIA’s total expenditure was distributed across the following sources:

participant plan expenses – $35.2 billion;

community partnership costs – $604.3 million;

suppliers – $604 million;

employee benefits - $551.6 million;

depreciation and amortisation – $65.5 million;

write-down and impairment of other assets – $9.3 million;

finance costs – $1.9 million;

grants – $347 000; and

impairment loss on financial instruments – $0.[52]

3.57The NDIA’s total own-source revenue stemmed from the following areas:

rendering of services – $34.1 billion;

interest – $259.8 million;

other revenue – $29.4 million; and

rental income – $704 000.[53]

3.58Additionally, the NDIA received $1.445 billion in revenue from government and reported an operating deficit of $14.9 million.[54]

2022–23 Annual Financial Sustainability Report

3.59An annual financial sustainability report (AFSR) is required in accordance with section 180B of the NDIA Act and provides an assessment of the NDIS’ financial sustainability.[55] The AFSR is produced using data at 30 June of each year and a summary of year’s AFSR has been included in the NDIA annual report.[56] This year’s AFSR uses data at 30 June 2023 to project future NDIS expenses and are thus referred to as ‘June 2023 projections’.[57]

3.60The NDIA explained that since the previous review, mid-year NDIS projections were undertaken and is referred to as the ‘December 2022 projections’.[58] These projections were used as the basis for the 2023–24 Budget and included allowances for the expected impact of the various decisions taken to enhance the NDIA’s capability, capacity and systems.[59] Additionally, the 2023–24 Budget also assumes growth in NDIS expenses from 2025–26 to 2026–27 of 8 per cent, moderating thereafter, including allowances for the NDIS Financial Sustainability Framework which was subsequently agreed by National Cabinet.[60]

3.61The NDIA Board stated that, in achieving its target of 8 per cent growth in total costs by 2026, the government has started the work by investing $720 million from 2023–24 to enhance the NDIA’s support capabilities.[61] Importantly, the Board also stated that the implementation of the independent NDIS Review’s final report will be critical in reaching the 8 per cent growth target.[62]

June 2023 projection of NDIS expenses

3.62According to the NDIA, the projected total of NDIS expenses on an accrual basis are $41.4 billion in 2023–24, increasing to $50.8 billion in 2025–26.[63] The NDIA elaborated on these projections by noting that:

the June 2023 projection of NDIS expenses incorporates revisions to assumptions and changes in future expectations since the previous review, and the December 2022 projections. These updated projections allow for the expected impact of the Budget initiatives, aimed to improve participant outcomes, and overall effectiveness and sustainability of the NDIS.[64]

3.63NDIS expenses are estimated to be 1.6 per cent of the gross domestic product (GDP) in 2023–24, which is anticipated to increase to 1.8 per cent by 2025–26.[65] A summary of the 2022–23 AFSR comparisons with previous projections is as follows:

Source: NDIA, Annual Report 2022–23, p. 80.

Source: NDIA, Annual Report2022–23, p. 81.

3.64The NDIA noted that the June 2023 projections assume agency resourcing remains relatively constant in real terms; however, if they do not, NDIS expenses are estimated to be higher than expected as shown in this review.[66] Further, the NDIA stated that:

In the 2023–24 Budget, Agency operating expenses reduce by 22 per cent in 2024–25 and remain lower than those in the NDIS projections thereafter. Agency operating expenses are excluded from the results shown in this summary.[67]

3.65More detail is documented in the 2022–23 AFSR.

3.66The committee appreciates the NDIA’s detailed financial statements, analysis, discussions of methodology and thanks the agency’s comprehensive explanatory statements contained in the financial sustainability section of its annual report.

Compliance index

3.67The committee notes that this is the second year that the NDIA’s list of requirements did not provide specific page references and, instead, references either complete sections or subsections of the annual report. In its previous report on annual report, the committee suggested that the NDIA provide precise references in its compliance check list to improve transparency and enhance overall visibility and accessibility of where reporting requirements have been satisfied in accordance with the PGPA Rule.

3.68The committee strongly encourages the NDIA actioning the above suggestion in its future annual reports.

3.69The committee deems that the agency’s 2022–23 report to be apparently satisfactory.

General comments on other annual reports

Compliance index

3.70Annual reports are the principal accountability mechanisms of the PGPA Act, and the committee considers it vital that these documents be accessible and comprehensible for all readers. A compliance index, or list of requirements, is an important tool for accessibility.

3.71The PGPA Rule specifies a particular format for departments and agencies to use when formulating its compliance index. The committee encourages all agencies to avoid any unnecessary deviations from this format, which it considers best practice.

3.72As stated in the committee’s examination of FSANZ, Hearing Australia and the NDIA’s annual report, all three agencies deviated from the PGPA Rule’s format when referencing either complete sections or subsections within its compliance checklist. Moreover, other examples of deviations that the committee identified relates to agencies providing incorrect references to page numbers.

3.73For example, the NDIS Quality and Safeguards Commission’s 2022–23 annual report referenced page 72 (which is a blank page) for its statement of significant issues reported to the Minister under paragraph 19(1)(e) of the Act that relates to non-compliance with Finance law and actions taken to remedy non-compliance, when it is instead on page 77; Sport Integrity Australia references page 8 for its transmittal letter which does not provide information on compliance, when it is instead on page 64; and the National Health Funding Body references page iv for details of the agency’s contact officer, the entity’s website address and electronic address of the report, when it is instead on page vi.

3.74The committee also observed that in some annual reports, certain that ‘mandatory’ requirements have not been provided in the compliance index. For instance, in Professional Services Review’s (PSR) annual report, the agency answered ‘N/A’ on a mandatory requirement to provide additional information, in accordance with section 17AGA, about organisations receiving amounts under reportable consultancy contracts or reportable non-consultancy contracts. Additionally, PSR also did not provide a website reference to where the entity’s Information Public Scheme statement pursuant to Part II of the FOI Act can be found. The Domestic, Family and Sexual Violence Commission and Services Australia also did not provide a website address for this requirement, despite referencing page numbers.

3.75As stated in its previous reports on annual reports, the committee strongly urges all entities to provide specific and accurate page references and to include all mandatory information to enhance readability and ensure that all compliance measures have been satisfied in accordance with the PGPA Rule.

Apparently satisfactory

3.76As noted in Chapter 1, the committee has assessed all reports of both the Health and Aged Care and Social Services portfolios received between 1 May 2023 and 31 October 2023 as apparently satisfactory. The committee reiterates its requests for all Commonwealth entities and companies to familiarise themselves with the requirements stipulated under the PGPA Act and PGPA Rule.

3.77The committee anticipates that the matters identified in this report will be rectified in future annual reports.

Senator Marielle Smith

Chair

Footnotes

[1]National Health Reform Act 2011, s. 9.

[2]Australian Commission on Safety and Quality in Health Care (ACSQHC), Annual Report 2022–23, p. 12.

[3]ACSQHC, Annual Report 2022–23, p. 13.

[4]ACSQHC, Annual Report 2022–23, p. 14.

[5]ACSQHC, Annual Report 2022–23, p. 18.

[6]ACSQHC, Annual Report 2022–23, p. 18.

[7]ACSQHC, Annual Report 2022–23, p. 13.

[8]Senate Community Affairs Legislation Committee, Annual Reports (No. 1) of 2023, p. 24.

[9]Senate Community Affairs Legislation Committee, Annual Reports (No. 1) of 2023, p. 24.

[10]ACSQHC, Annual Report 2022–23, p. 111.

[11]ACSQHC, Annual Report 2022–23, p. 114.

[12]ACSQHC, Annual Report 2022–23, p. 112.

[13]ACSQHC, Annual Report 2022–23, p. 111.

[14]Public Governance, Performance and Accountability Rue 2014 (PGPA Rule), s. 17AJ(d).

[15]Senate Community Affairs Legislation Committee, Annual Reports (No. 1) of 2023, pp. 25–26.

[16]Public Governance, Performance and Accountability Amendment (Corporate Commonwealth Entity Annual Reporting) Rule 2016, 6 May 2016.

[17]Food Standards Australia New Zealand (FSANZ), Annual Report 2022–23, p. 9.

[18]See: Commonwealth Consolidated Acts, Food Standards Australia New Zealand Act 1991 – Sect 13 Functions, www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/fsanza1991336/s13.html (accessed 23 February 2024).

[19]FSANZ, Annual Report 2022–23, pp. 4–6.

[20]FSANZ, Annual Report 2022–23, p. 10.

[21]FSANZ, Annual Report 2022–23, p. 14; FSANZ, Corporate Plan 2022–23, pp. 12–13.

[22]To view FSANZ’s additional performance area results, see: FSANZ, Annual Report 2022–23, pp. 14–33.

[23]FSANZ, Annual Report 2022–23, p. 21.

[24]FSANZ, Annual Report 2022–23, p. 21.

[25]FSANZ, Annual Report 2022–23, p. 59.

[26]FSANZ, Annual Report 2022–23, p. 59.

[27]FSANZ, Annual Report 2021–22, p. 63.

[28]FSANZ, Annual Report 2022–23, p. 59.

[29]FSANZ, Annual Report 2022–23, p. 59.

[30]FSANZ, Annual Report 2022–23, p. 59.

[31]FSANZ, Annual Report 2022–23, p. 64 and 82.

[32]Australian Hearing Services Act 1991, s. 8; Hearing Australia, Corporate Plan 2022–26, p. 6.

[33]Hearing Australia, Annual Report 2022–23, pp. 6–8.

[34]Hearing Australia, Corporate Plan 2022–26, p. 6.

[35]Hearing Australia, Corporate Plan 2022–26, p. 10.

[36]Hearing Australia, Corporate Plan 2022–26, p. 10.

[37]Hearing Australia, Corporate Plan 2022–26, p. 10.

[38]Hearing Australia, Corporate Plan 2022–26, p. 10.

[39]Hearing Australia, Corporate Plan 2022–26, p. 10.

[40]Hearing Australia, Annual Report 2022–23, p. 43.

[41]Hearing Australia, Annual Report 2022–23, p. 40.

[42]Hearing Australia, Annual Report 2022–23, p. 49.

[43]Hearing Australia, Annual Report 2022–23, p. 40.

[44]Hearing Australia, Annual Report 2022–23, p. 40.

[45]Senate Community Affairs Legislation Committee, Annual Reports (No. 1) of 2023, p. 31.

[46]National Disability Insurance Agency (NDIA), Statutory functions and reporting, www.ndis.gov.au/about-us/governance/statutory-functions-and-reporting (accessed 27 February 2024).

[47]NDIA, Annual Report 2022–23, pp. 12–13.

[48]NDIA, Annual Report 2022–23, p. 14.

[49]NDIA, Corporate Plan 2022–26, p. 7.

[50]NDIA, Annual Report 2022–23, p. 19; NDIA, Corporate Plan 2022–26, p. 23.

[51]NDIA, Annual Report, p. 43.

[52]NDIA, Annual Report, p. 43.

[53]NDIA, Annual Report, p. 43.

[54]NDIA, Annual Report, p. 43.

[55]NDIA, Annual Report 2022–23, p. 78.

[56]NDIA, Annual Report 2022–23, p. 78.

[57]NDIA, Annual Report 2022–23, p. 78.

[58]NDIA, Annual Report 2022–23, p. 78.

[59]NDIA, Annual Report 2022–23, p. 78.

[60]NDIA, Annual Report 2022–23, p. 78.

[61]NDIA, Annual Report 2022–23, p. 78.

[62]NDIA, Annual Report 2022–23, p. 78.

[63]The NDIA noted that NDIS expenses relate to the payments made for participant supports and do not include operating expenses. They are based on when the service was provided to the participant recognising some services are paid for after the end of the period. NDIA, Annual Report 2022–23, p. 80.

[64]NDIA, Annual Report 2022–23, p. 80.

[65]NDIA, Annual Report 2022–23, p. 80.

[66]NDIA, Annual Report 2022–23, p. 80.

[67]NDIA, Annual Report 2022–23, p. 80.