What to include in annual performance statements

Annual performance statements must include the following statements: 

• that the annual performance statements are prepared for paragraph 39(1)(a) of the PGPA Act and any other legislation applicable to the preparation of annual performance statements of the entity;
• the reporting period for which the performance statements are prepared; and
• that the annual performance statements, in the opinion of the accountable authority:
  • accurately present the entity’s performance in the reporting period; and
  • comply with subsection 39(2) of the PGPA Act (section 16F of the PGPA Rule).

The annual performance statements must include the results of the measurement and assessment of the entity’s performance in the reporting period in achieving its purposes (section 16F(2) item 2 of the PGPA Rule).

In practice, this will require entities to report against the performance information published during the reporting period in their corporate plan and Public Portfolio Budget Statement, including Portfolio Additional Estimates Statement or other portfolio estimates statement.  

These performance results are expected to be derived using the data sources or methodology determined at the time each performance measure was developed. It is good practice for this information to be included as part of the performance information outlined in the corporate plan. Entities may wish to use cross-references to its corporate plan to assist a reader to understand how performance is measured.  

It is for each entity to structure and present results in a manner that best demonstrates performance in its specific circumstances. Good practice annual performance statements present the results in a way that is clear, concise and easily linked to the information presented in the entity’s corporate plan and PBS for the relevant period. 

Entities often use, to good effect, a standard legend or graphic to illustrate the extent of achievement of individual performance measures. Where this approach is followed, it should be used in a consistent way throughout the annual performance statements. The inconsistent presentation of performance can result in a lack of clarity about the extent of achievement of individual performance measures, which in turn can make it difficult for a reader to understand the extent of achievement of an entity’s purposes. 

An entity’s annual performance statements must include an analysis of the factors that contributed to its performance in achieving its purposes. Entities should provide an informative analysis beyond simply listing specific achievements. This should include any changes to:

1. the entity's purposes, activities or organisational capability; or
2. the environment in which the entity operated;

that may have had a significant impact on the entity's performance (section 16F(2) item 3 of the PGPA Rule).

It is good practice for the analysis of the factors that contributed to performance to be included for individual performance measures as well as at an entity-wide level.

The intent of the PGPA Rule requirement is for the annual performance statements to include factors that have contributed in both a positive and negative way to an entity’s performance.

There may be events or external factors flagged in an entity’s corporate plan that were expected to affect an entity’s ability to deliver on the intended results. There may also be events or external factors which were unknown that may have impacted an entity's ability to achieve their purposes. The entity should discuss in its annual performance statements how such events or factors contributed to, or restricted, its performance in the reporting period.

These factors may include the extent that an entity’s cooperation with other organisations or bodies has impacted the entity’s performance.

This cooperation may be in relation to any linked programs reported in the entity’s PBS, the organisations and bodies discussed in the entity’s corporate plan that are expected to make a significant contribution towards the entity’s purposes, or more broadly.

If the accountable authority considers that the corporate plan contains confidential or commercially sensitive information, or sensitive information on national security matters that if published could prejudice the national security interest of the Commonwealth, a corporate plan may be prepared for publication on the entity’s website that excludes such matters (subsection 16E(4) of the PGPA Rule).

If an entity has published a corporate plan which excludes matters under subsection 16E(4) of the PGPA Rule, it will need to produce an annual performance statements that is a direct acquittal of the performance measurement and reporting intentions identified in that corporate plan.

This process for dealing with sensitive information also applies to government business enterprises that, under subsection 16E(4), have prepared and published a statement of corporate intent in place of a full corporate plan. That is, the annual performance statements will need to be acquitted against the published version of the corporate plan.