Federal Register of Legislation - Australian Government

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Rules/Other as made
This rule amends the Public Governance, Performance and Accountability Rule 2014 to establish theminimum requirements for annual reporting for the content of annual reports for Corporate Commonwealth entities to be presented to parliament.
Administered by: Finance
Registered 06 May 2016
Tabling HistoryDate
Tabled HR30-Aug-2016
Tabled Senate30-Aug-2016
Date of repeal 08 May 2016
Repealed by Division 1 of Part 3 of Chapter 3 of the Legislation Act 2003
Table of contents.

 

Public Governance, Performance and Accountability Amendment (Corporate Commonwealth Entity Annual Reporting) Rule 2016

I, MATHIAS HUBERT PAUL CORMANN, Minister for Finance, make the following rule.

Dated 5 May 2016

MATHIAS HUBERT PAUL CORMANN

Minister for Finance

 

  

  


Contents

1............ Name............................................................................................................................. 1

2............ Commencement............................................................................................................. 1

3............ Authority....................................................................................................................... 1

4............ Schedules...................................................................................................................... 1

Schedule 1—Amendments                                                                                                                          2

Public Governance, Performance and Accountability Rule 2014                                               2

 


1  Name

                   This is the Public Governance, Performance and Accountability Amendment (Corporate Commonwealth Entity Annual Reporting) Rule 2016.

2  Commencement

             (1)  Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this instrument

The later of:

(a) the start of the day after this instrument is registered; and

(b) immediately after the commencement of the Public Governance, Performance and Accountability Amendment (Non‑corporate Commonwealth Entity Annual Reporting) Rule 2016.

7 May 2016

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

             (2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under the Public Governance, Performance and Accountability Act 2013.

4  Schedules

                   Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1Amendments

  

Public Governance, Performance and Accountability Rule 2014

1  Section 4

Insert:

related entity: a Commonwealth entity or a company (a body) is a related entity of a Commonwealth entity or a company (also a body) if:

                     (a)  an individual is the accountable authority of both bodies; or

                     (b)  an individual is a member of the accountable authority, or a director of the board, of both bodies; or

                     (c)  an individual is a member of the accountable authority of one body and a director of the board of the other body; or

                     (d)  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.

2  At the end of Division 3A of Part 2‑3

Add:

Subdivision BAnnual report for corporate Commonwealth entities

17BA  Guide to this Subdivision

The purpose of this Subdivision is to prescribe requirements for annual reports for corporate Commonwealth entities.

These requirements were approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit on 2 May 2016.

This Subdivision is made for subsection 46(3) of the Act.

17BB  Approval of annual report by accountable authority

                   The annual report for a corporate Commonwealth entity must:

                     (a)  be approved by the accountable authority of the entity; and

                     (b)  be signed by the accountable authority, or a member of the accountable authority, of the entity; and

                     (c)  include details of how and when approval of the annual report was given; and

                     (d)  state that the accountable authority of the entity is responsible for preparing and giving the annual report to the entity’s responsible Minister in accordance with section 46 of the Act.

17BC  Parliamentary standards of presentation

                   The annual report for a corporate Commonwealth entity must comply with the guidelines for presenting documents to the Parliament.

17BD  Plain English and clear design

             (1)  The annual report for a corporate Commonwealth entity must be prepared having regard to the interests of the Parliament and any other persons who are interested in the annual report.

             (2)  Information included in the annual report must be relevant, reliable, concise, understandable and balanced, including through doing the following, where practicable:

                     (a)  using clear design (for example, through headings and adequate spacing);

                     (b)  defining acronyms and technical terms (for example, in a glossary);

                     (c)  using tables, graphs, diagrams and charts;

                     (d)  including any additional matters as appropriate.

17BE  Contents of annual report

                   The annual report for a corporate Commonwealth entity for a reporting period must include the following:

                     (a)  details of the legislation establishing the body;

                     (b)  both of the following:

                              (i)  a summary of the objects and functions of the entity as set out in the legislation;

                             (ii)  the purposes of the entity as included in the entity’s corporate plan for the period;

                     (c)  the names of the persons holding the position of responsible Minister or responsible Ministers during the period, and the titles of those responsible Ministers;

                     (d)  any directions given to the entity by a Minister under an Act or instrument during the period;

                     (e)  any government policy orders that applied in relation to the entity during the period under section 22 of the Act;

                      (f)  if, during the period, the entity has not complied with a direction or order referred to in paragraph (d) or (e)—particulars of the non‑compliance;

                     (g)  the annual performance statements for the entity for the period in accordance with paragraph 39(1)(b) of the Act and section 16F of this rule;

                     (h)  a statement of any significant issue reported to the responsible Minister under paragraph 19(1)(e) of the Act that relates to non‑compliance with the finance law in relation to the entity;

                      (i)  if a statement is included under paragraph (h) of this section—an outline of the action that has been taken to remedy the non‑compliance;

                      (j)  information on the accountable authority, or each member of the accountable authority, of the entity during the period, including:

                              (i)  the name of the accountable authority or member; and

                             (ii)  the qualifications of the accountable authority or member; and

                            (iii)  the experience of the accountable authority or member; and

                            (iv)  for a member—the number of meetings of the accountable authority attended by the member during the period; and

                             (v)  for a member—whether the member is an executive member or non‑executive member;

                     (k)  an outline of the organisational structure of the entity (including any subsidiaries of the entity);

                      (l)  an outline of the location (whether or not in Australia) of major activities or facilities of the entity;

                    (m)  information in relation to the main corporate governance practices used by the entity during the period;

                     (n)  the decision‑making process undertaken by the accountable authority for making a decision if:

                              (i)  the decision is to approve the entity paying for a good or service from another Commonwealth entity or a company, or providing a grant to another Commonwealth entity or a company; and

                             (ii)  the entity, and the other Commonwealth entity or the company, are related entities; and

                            (iii)  the value of the transaction, or if there is more than one transaction, the aggregate value of those transactions, is more than $10 000 (inclusive of GST);

                     (o)  if the annual report includes information under paragraph (n):

                              (i)  if there is only one transaction—the value of the transaction; and

                             (ii)  if there is more than one transaction—the number of transactions and the aggregate of value of the transactions;

                     (p)  any significant activities and changes that affected the operations or structure of the entity during the period;

                     (q)  particulars of judicial decisions or decisions of administrative tribunals made during the period that have had, or may have, a significant effect on the operations of the entity;

                      (r)  particulars of any report on the entity given during the period by:

                              (i)  the Auditor‑General, other than a report under section 43 of the Act (which deals with the Auditor‑General’s audit of the annual financial statements for Commonwealth entities); or

                             (ii)  a Committee of either House, or of both Houses, of the Parliament; or

                            (iii)  the Commonwealth Ombudsman; or

                            (iv)  the Office of the Australian Information Commissioner;

                      (s)  if the accountable authority has been unable to obtain information from a subsidiary of the entity that is required to be included in the annual report—an explanation of the information that was not obtained and the effect of not having the information on the annual report;

                      (t)  details of any indemnity that applied during the period to the accountable authority, any member of the accountable authority or officer of the entity against a liability (including premiums paid, or agreed to be paid, for insurance against the authority, member or officer’s liability for legal costs);

                     (u)  an index identifying where the requirements of this section and section 17BF (if applicable) are to be found.

Note:          Other legislation may require corporate Commonwealth entities to include additional matters in the annual report.

17BF  Disclosure requirements for government business enterprises

Changes in financial conditions and community service obligations

             (1)  The annual report for a reporting period for a government business enterprise that is a corporate Commonwealth entity must include the following information:

                     (a)  an assessment of:

                              (i)  significant changes in the entity’s overall financial structure and financial condition during the period; and

                             (ii)  any events or risks that could cause financial information that is reported not to be indicative of future operations or financial condition;

                     (b)  dividends paid or recommended in relation to the period;

                     (c)  details of any community service obligations the government business enterprise has, including:

                              (i)  an outline of actions the government business enterprise has taken to fulfil those obligations; and

                             (ii)  an assessment of the cost of fulfilling those obligations.

Information that is commercially prejudicial

             (2)  However, information may be excluded if the accountable authority of the government business enterprise believes, on reasonable grounds, that the information is commercially sensitive and would be likely to result in unreasonable commercial prejudice to the government business enterprise. The annual report must state whether such information has been excluded.

3  At the end of Chapter 5

Add:

Part 2Amendments made by the Public Governance, Performance and Accountability Amendment (Corporate Commonwealth Entity Annual Reporting) Rule 2016

  

32  Application of amendments made by the Public Governance, Performance and Accountability Amendment (Corporate Commonwealth Entity Annual Reporting) Rule 2016

                   The amendments of this rule made by the Public Governance, Performance and Accountability Amendment (Corporate Commonwealth Entity Annual Reporting) Rule 2016 apply in relation to any reporting period that begins on or after 1 July 2015.