Annual report for corporate Commonwealth entities (RMG 136)

What is an annual report?

1. The primary purpose of annual reports of corporate Commonwealth entities is accountability. Annual reports serve to inform the Parliament (through the responsible Minister), other stakeholders, educational and research institutions, the media and the general public about the performance of entities in relation to activities undertaken services provided on behalf of government.
2. Annual reports are also a key reference document and a document for internal management. They form a critical part of the historical record.
3. Annual reports are also a key accountability mechanism of the Commonwealth performance framework, established under the PGPA Act and the Commonwealth’s resource management framework, through the reporting of the actual performance of entities in the annual report against the planned performance information outlined in their Portfolio Budget Statements and corporate plans.
4. Annual reports coexist with additional information available through other sources, including entity websites.

Principles Underlying Annual Report Requirements

5. When corporate Commonwealth entities are preparing an annual report, they should consider the following principles. An annual report should:
   • be written in plain English and provide sufficient information and analysis for the Parliament to make a fully informed judgement on entity performance
   • align with the overall Commonwealth resource management framework,
     PGPA Act, PGPA Rule and, the enhanced Commonwealth performance framework
   • reflect the harmonisation, as far as practicable, of reporting regimes within government (including corporate plans, Portfolio Budget Statements, Portfolio Additional Estimates Statements and other portfolio statements accompanying any other additional appropriation bills), and between the government and non-government sectors
   • include consideration by the accountable authority of the relative benefits and costs involved as to the level to which particular matters are reported.
6. Entities vary in role and size, and accountable authorities have discretion as to the extent of information to include in annual reports and the sequence in which it is presented, as long as the requirements for information set out in the PGPA Rule are met.
7. Whether or not particular information should be reported, should be decided, in the absence of any contrary direction in this guide, having regard to the principles underlying annual report requirements as detailed in the introduction to this guide.

8. This guide is divided into three parts, each providing information on various requirements for annual reports. Where relevant, extracts of the specific legislative requirements are shown in the following layout: 

9. Notes have been provided below the boxes to provide further explanation or guidance. It is important to read both the provision extracts in the boxes and the notes.
10. At the end of the guide are appendices containing tables and templates to assist entities in meeting the annual report requirements, and a glossary to describe some of the terms used in this guide.
11. Appendix A contains the template list of requirements, required to be included in entities’ annual reports as an aid to access.
    • The list of requirements is also a useful resource for annual report coordinators, as it can be used as a checklist to ensure that the mandatory PGPA requirements have been met. 
    • To support this, the information in Part 2 of this guide has been structured in the same order as the list of requirements.
12. Appendix B contains data templates that are required to be completed for the digital reporting tool. 
    • Where a provision has an associated data template, a cross-reference to that template is provided above the provision.
    • The financial data templates only capture a subset of the required information from the associated tables.
    • The non-financial data templates, however, help to meet minimum reporting requirements for either part or all of the provisions that they relate to.

13. This part provides details of the requirements for the presentation of annual reports to the Parliament, including timeframes, production and design standards, and publishing and distribution obligations. This part also outlines the requirements for entities to publish their annual reports using the digital reporting tool.

Overarching requirements

14. For entities that report on a financial year basis, this section requires that the annual report to be prepared and provided to the responsible Minister by 15 October for each reporting period.
15. This provision is not meant to contravene any timing set out by the Department of the Prime Minister and Cabinet (PM&C) in relation to tabling of annual reports in the Parliament. Entities must ensure they provide their responsible Minister with sufficient time to consider the annual report prior to the report being presented to the Parliament, in accordance with PM&C’s guidelines (see the Parliamentary presentation timing and standards section below for further details).
16. The provisions of subsections 34C(4) to (7) of the Acts Interpretation Act 1901 allow for an application for extension of the period for presenting annual reports. An extension should only be sought if it would not be reasonably possible for the report to be prepared within the specified timeframes.

Approval requirements

17. The annual report must be approved by the accountable authority of the corporate Commonwealth entity. The annual report must also be signed by the accountable authority, or a member of the accountable authority where a group of persons is the accountable authority (for example, a board or council), and detail how and when approval was given.

 Parliamentary standards, publishing and clear design

18. PM&C publishes Tabling Guidelines and associated circulars that Commonwealth entities should follow when arranging for the presentation of documents to the Parliament.
19. Towards the end of a reporting period, PM&C may issue a Tabling Circular containing the tabling timetable, which will reflect the Parliament’s expectations for the timing of the presentation of annual reports.
20. Normally annual reports are tabled on or before 31 October and it is expected annual reports are tabled prior to the October Estimates Hearings. This ensures annual reports are available for scrutiny by the relevant Senate standing committee.
21. Where entities are unable to meet the timing set out in PM&C’s circular, they should contact tabling@pmc.gov.au for further advice.
22. The Tabling Circular may also provide delivery instructions, and key tasks for tabling annual reports when the Parliament is not sitting. 
23. Guidance on the production standards for annual reports tabled in the Parliament are set out in the Printing Standards on the Parliament of Australia website.

Plain English and clear design

24. Annual reports are key documents of accountability and transparency to the Parliament and the public. Accordingly, annual reports should be prepared to best provide readers with a clear account of the operations and performance of the entity for the reporting period.
25. Tables, graphs, diagrams and charts should be used where appropriate to provide additional context to the information. Consistent with the Printing standards, entities must have regard to limiting the use of colour and illustrations to where it enhances the reader’s understanding of the material. An excessive use of colour, illustrations and photography is not usually required for the purposes of accountability and reporting to the Parliament.

The digital reporting tool

26. The digital reporting tool enables entities to draft content and publish annual reports to the Transparency Portal at transparency.gov.au in a fully accessible HTML format. Commencing from the 2018-19 reporting period, all Commonwealth entities’ and companies’ annual reports are to be published on and available from transparency.gov.au shortly after the presentation of these reports the Parliament.
27. The digital reporting tool contains a collection of templates for standard data sets that must be completed for the entity’s annual report. These templates reflect mandatory data requirements as set out by the PGPA Rule 2014 and are designed to assist entities to meet the reporting requirements. To assist entities in the preparation of their annual reports, a copy of all data templates are provided at Part 3.
28. The digital reporting tool is designed to assist entities to undertake a streamlined and more efficient annual reporting and publication process. Annual report coordinators should consider developing the annual report content directly in the tool and using the mandatory reporting templates provided within the relevant section of the entity’s annual report itself. This approach helps to focus the content of the report on the reporting requirements of the Parliament, rather than some of the broader publication elements that are not core to the accountability or reporting requirements. The digital content can be exported from the tool, to be type set and printed for tabling purposes. Adding further graphic design elements at this point in the publication process is possible but is not necessary to meet the tabling requirements.  
29. Further, the Australian Government Digital Service Standard, available at www.dto.gov.au/standard/, provides information about the legal and policy obligations of entities in relation to online publishing, including a range of mandatory requirements, including compliance with Web Content Accessibility Guidelines, which the digital reporting tool assists entities in meeting by producing the HTML format.

30. This part provides details of the annual report content requirements as specified by the PGPA Rule. The sections of the PGPA Rule outlining the requirements for content to be included in entities’ annual reports were approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit.

Enabling legislation

31. The actions of a corporate Commonwealth entity are guided by its enabling legislation. The annual report must the information detailed in the provision above, and is designed to give readers a high-level understanding of the organisation

Responsible Minister

32. The annual report must specify the current responsible Minister’s name and the name of any other responsible Ministers during the financial year being reported on. The title of the responsible Minister(s) must also be included.   

Ministerial directions and government policy orders

33. Annual reports must include details of any directions issued by the responsible Minister, or other Minister(s), under the enabling legislation of the corporate Commonwealth entity or any other legislation or legislative instruments.
34. Under section 22 of the PGPA Act, the government may make a government policy order that specifies a policy of the Australian Government that is to apply to one or more corporate Commonwealth entities. A corporate Commonwealth entity that is subject to a government policy order is required to include this information in its annual report.

Annual performance statements

35. For further information on the purpose and content requirements of the annual performance statement, refer to RMG No. 134: Annual performance statements for Commonwealth entities.

Significant non-compliance issues with finance law

Associated data template: PGPA Rule Section 17BE (h) – (i) Significant non-compliance with the Finance Law

36. This requirement is linked to section 19 of the PGPA Act, which requires accountable authorities of Commonwealth entities to notify their responsible Minister when significant issues have been identified. The details of significant non-compliance issues (as reported to the Minister under section 19 of the PGPA Act) must be reported in the entity’s annual report for the reporting period when the issue occurred.
37. The finance law incorporates the PGPA Act, any rules and instruments created under the PGPA Act, and Appropriation Acts. For further information, see RMG No. 214: Notification of significant non-compliance with the finance law.

Information about the accountable authority

Associated data template: PGPA Rule Section 17BE (j),(i)-(v) – Accountable Authority

38. The annual report must include the information detailed in the provision above. Where an entity’s accountable authority consists of multiple members, the annual report must include the number of meetings of the accountable authority attended by each member during the reporting period and whether each member is an executive or non-executive member.
39. For the purposes of annual reporting, an executive member is an employee of the corporate Commonwealth entity, responsible for executive functions in the management and administration of the entity. Non-executive members are independent of corporate management and not employees of the corporate Commonwealth entity.

Organisational structure and location

Associated data templates: PGPA Rule Section 17BE (ka) – Management of Human Resources

40. The annual report must include the information detailed in the provision above, and is designed to give readers a high-level understanding of the organisation. Annual reports must include statistics on the number of employees of the entity (with reference to ongoing employees and non‑ongoing employees), at the end of the reporting period and the previous reporting period, in relation to each of the following:
    • full-time employees, as identified by your entity’s employment arrangements. As a guide, the Fair Work Ombudsman’s website provides general employment definitions available at https://www.fairwork.gov.au//dictionary.aspx.
    • part-time employees as identified by your entity’s employment arrangements.
    • gender, as defined under the Sex Discrimination Act 1984, and in line with the recommendations made in the Attorney‑General’s Department’s Australian Government Guidelines on the Recognition of Sex and Gender (2013).
    • location, based on the State or Territory of employment.
41. All human resources statistics are to be calculated and reported on an actual head count basis (number of employees) as at the end of each reporting period.
42. If an entity believes there is the potential of significant risk of unintentional identification and consequential harm to a specific individual, an entity is best able to manage this risk, and has the discretion to report information at a higher level without further disaggregation.

Statement on governance

43. Annual reports must include information on the main corporate governance practices that the entity had in place during the financial year. The content of this statement is at the discretion of the accountable authority; however, it is suggested that the review should include:
    • board committees of the entity and their main responsibilities
    • education and performance review processes for members of the accountable authority
    • ethics and risk management policies.

Related entity transactions

44. The annual report must include the information detailed in the provision above. A related entity means a Commonwealth entity or a company (a body) is a related entity of a Commonwealth entity or a company (also a body) if:
    • an individual is the accountable authority of both bodies
    • an individual is a member of the accountable authority, or a director of the board, of both bodies
    • an individual is a member of the accountable authority of one body and a director of the board of the other body
    • an individual is the accountable authority of one body and a member of the accountable authority, or director of the board, of the other body.
45. The annual report must include the decision making process undertaken by the accountable authority when it enters into a procurement or grant transaction where a member of the accountable authority holds a similar position in the organisation that provides the good or service or receives the grant. The organisation providing the good or service or receiving the grant may take the form of a Commonwealth entity, Commonwealth company or a private company.

Significant activities and changes affecting the entity

46. The annual report must detail any significant activities and changes that affected the operations or structure of the entity during the financial year. This may include:
    • significant events, such as forming or participating in the formation of a company, significant partnership or trust
    • operational and financial results of the entity
    • key changes to the entity’s state of affairs or principal activities
    • amendments to the entity’s enabling legislation and to any other legislation directly relevant to its operation.

Judicial decisions and reviews by outside bodies

47. The annual report must include information on any external scrutiny of the entity that has occurred within the reporting period, as per the above provision.

Obtaining information from subsidiaries

48. The annual report must provide an explanation of information not obtained from a subsidiary, as per the above provision.

Indemnities and insurance premiums

49. The annual report must provide details of any indemnity that applied as per the above provision. Officer means a senior manager of the corporate Commonwealth entity.

Audit committee

Associated data template: PGPA Rule Section 17BE (taa) - Audit committee

50. For further information on the repointing requirements for Audit Committees, see RMG 202: Audit Committees.

Executive Remuneration

Associated data template: PGPA Rule Section 17BE (ka) – Management of Human Resources

51. For guidance on reporting executive remuneration refer to RMG No. 138: Commonwealth entities Executive Remuneration Reporting Guide for Annual Reports.

List of annual report requirements

52. Entities should note that the requirement for entities’ annual reports to include a list of requirements must be provided in a consistent format for all entities. The mandatory table can be located at schedule 2A of the PGPA Rule, available at www.legislation.gov.au, and in Appendix A of this guide.
53. The list of requirements must be included as an appendix to the annual report. If an item specified in the checklist is not applicable to an entity, it should be reported as “not applicable” rather than omitted from the list. Entities must also provide details of the location of the information in the annual report that addresses each of the mandatory requirements specified by the PGPA Rule.

Disclosure requirements for government business enterprises

54. A Government Business Enterprise (GBE) that is a corporate Commonwealth entity is required to disclose in its annual report the information as detailed in the above provision.
55. Information can be excluded where the accountable authority believes, on reasonable grounds, that it is commercially sensitive and would likely result in unreasonable commercial prejudice to the GBE. The annual report must state whether information has been excluded.

56. This part provides details of some of the annual report content required by other Acts or instruments, which must be included in the annual report, if relevant to the entity.

57. The operations that an entity reports on in its annual report can be affected by other legislation or legislative instruments. Such legislation can either be general in nature or specific enabling legislation of the entity.
58. This part of the guide provides an overview of the other legislative requirements applicable to many entities. It is the responsibility of entities to consider whether the legislation applies to them.

Work health and safety

59. For further information on the Work Health and Safety Act 2011 please see the Comcare website. If there are any questions please contact Comcare at general.enquiries@comcare.gov.au.

60. Note that the reporting on advertising and market research is not restricted to electoral matters. Further guidance on the different types of advertising is available on the Department of Finance website.
61. The reporting threshold for each year is available from the Australian Electoral Commission website.

Ecologically sustainable development and environmental performance

62. The Department of Agriculture, Water and the Environment has Section 516A Reporting Guidelines available on their website. The additional guidance helps entities decide which of their activities to report on. Sets of generic indicators have also been provided to assist agencies with ongoing monitoring of their Ecologically Sustainable Development and environmental performance.
63. Questions about the application of these requirements should be directed to esd.enquiries@environment.gov.au.

Carer recognition

64. In the case of an entity that is defined as a ‘public service care agency’, compliance with the entity’s obligations under the Carer Recognition Act 2010 is required.
65. A public service care agency is defined in section 4 of the Carer Recognition Act 2010 to mean an agency as defined in the Public Service Act 1999 that is responsible for the development, implementation, provision or evaluation of policies, programs or services directed to carers or the persons for whom they care.

Below is the table set out in Schedule 2A of the PGPA Rule. Section 17BE(u) requires this table be included in entities’ annual reports.

This appendix contains all the data templates relevant for your entity.

The below data templates are designed by the Department of Finance to capture the mandatory PGPA Rule related information. These data templates are contained in the Digital Annual Reporting Tool and are used to populate the Transparency Portal find data function. The population of all templates in their current form is mandatory, do not add or delete any of the templates/ or sections, rows or columns of the templates which contain headings in the Digital Annual Reporting Tool. These data templates can be copied into the body of the digital annual report, if desired.

PGPA Rule Section 17BE (h) – (i) Significant non-compliance with the Finance Law

 Note on completing the above data template: Add an additional row for each significant non-compliance. Where no instances have been reported, entities should indicate this with “N/A”. For guidance on the reporting requirement refer to Resource Management Guide No. 214 – Notification of significant non‑compliance with the finance law.

PGPA Rule Section 17BE (j),(i)-(v) – Accountable Authority

Details of Accountable Authority during the reporting period Current Report Period (2019-20)

Note on completing the above data template: If there are not sufficient rows, additional rows can be added (or deleted as necessary) to this data template to provide the required information on each member of the accountable authority, within the reporting period. The information provided regarding an individual member’s qualifications and the experience will be subjective to the entity completing the data template. The entity is best placed to determine what information meets this reporting requirement. 

PGPA Rule Section 17BE (ka) – Management of Human Resources

Note on completing the below data templates: The below 4 data templates regarding ongoing and non-ongoing employees are to be completed by all entities.

All Ongoing Employees Current Report Period (2019-20)

 All Ongoing Employees Current Report Period (2019-20)

 All Ongoing Employees Previous Report Period (2018-19)

 All Non-Ongoing Employees Previous Report Period (2018-19)

PGPA Rule Section 17 BE (ta) - Executive Remuneration

Information about remuneration for key management personnel

 Note on completing the above data template: If there are not sufficient rows, additional rows can be added (or deleted) to this data template to provide the required information on each key management personnel. For guidance on reporting executive remuneration refer to Resource Management Guide No. 138 ‑ Commonwealth entities Executive Remuneration Reporting Guide for Annual Reports.

Information about remuneration for senior executives

 Note on completing the above data template: If there is a specific remuneration band where no information is reported, provide zeros for the whole row. Additional rows can be added to this data template to provide the required banding. For guidance on reporting executive remuneration refer to Resource Management Guide No. 138 ‑ Commonwealth entities Executive Remuneration Reporting Guide for Annual Reports.

Information about remuneration for other highly paid staff

PGPA Rule Section 17BE (taa) - Audit committee

Note on completing the above data template: Add an additional row for each member of the Audit Committee. When there is no remuneration for the audit committee member’s service report $0. For guidance on the reporting requirement refer to Resource Management Guide No. 202 - Audit Committees.

Financial Statements Summary

The below financial statements summary tables are a subset of the full audited financial statements contained in your entity’s annual report. These line items are extracted for the purpose of populating the find data function of www.transparency.gov.au for comparison across all Commonwealth entities and companies.

These individual line items should be read in isolation of each other. In many cases the “total” lines will not equal the sum total of the previous items above. This is because there may be other line items that are included in the full audited financial statements, but these are not to be inserted or added to these data templates.

The presentation of expenses and liabilities should be on a positive basis. That is the absolute value for expenses and liabilities should be provided in the data templates below, do not use negatives or brackets. Where a particular line item has a zero (0) value for your entity these are to be reported as a 0, in the data templates. Cells are not to be left blank or contain the (-) symbol. This is to ensure consistency of the information across all Commonwealth entities and companies.

Statement of Comprehensive Income Current Report Period (2019-20)

Statement of Financial Position Current Report Period (2019-20)

Statement of Changes in Equity Current Report Period (2019-20) 

 Cash flow Statement Current Report Period (2019-20)

Notes to the Financial Statements (Departmental) (2019-20)

Aggregate Assets and Liabilities

 Commonwealth Lessees – Departmental Leases under AASB 16 (2019-20)

Regulatory Charging Summary Note 

 Administered Statement of Comprehensive Income Current Report Period (2019-20)

Administered Schedule of Assets and Liabilities Current Report Period

(2019-20)

Administered Reconciliation Schedule Current Report Period (2019-20) 

Administered Cash Flow Statement Current Report Period (2019-20)