Chapter 2Review of selected annual reports
2.1This chapter examines selected annual reports in greater detail in accordance with standing orders. The committee has selected the annual reports of the following non-corporate Commonwealth entities, corporate Commonwealth entities, and non-statutory bodies for examination:
Department of Climate Change, Energy, the Environment and Water;
Great Barrier Reef Marine Park Authority;
Department of Infrastructure, Transport, Regional Development, Communications and the Arts; and
National Gallery of Australia.
2.2In accordance with standing orders, the following summaries of reports examined draw attention to significant matters relating to the operations and performance of bodies during the year under review.
Climate Change, Energy, the Environment and Water portfolio
Department of Climate Change, Energy, the Environment and Water
2.3The Department of Climate Change, Energy, the Environment and Water (DCCEEW) annual report for 2023-24 was presented out of sitting in the Senate on 25 October 2024 and tabled in the House of Representatives on 4 November 2024.
2.4In his review of the annual report, the departmental secretary, Mr David Fredericks, highlighted the progress that DCCEEW has made in its second year, specifically noting the progress on the Nature Positive Plan, including the establishment of the world’s first nature repair market.
2.5The Secretary set out DCCEEW’s significant work projects for the 2023-24 reporting period, including:
Driving investment in clean energy industries through the Future Made in Australia initiatives;
Launching the Capacity Investment Scheme to encourage greater investment in renewable energy;
Establishing five of the six priority offshore wind areas to help grow the industry;
Obtaining national agreement to a set of goals to halt and reverse biodiversity loss, including adding 12 new proposed Indigenous Protected Areas; and
Strengthening Australia’s scientific capabilities in Antarctica.
2.6Mr Fredericks also outlined work undertaken by DCCEEW to establish themselves as a ‘strong, influential department of state’, including:
Significant progress on the development of a First Nations Strategy;
Establishment of an Inclusion Strategy, to foster an open and inclusive culture in DCCEEW;
Launching a ‘Safe to Speak-up’ campaign to enhance integrity;
Implementing the Digital Connect Program to uplift technical capabilities across DCCEEW; and
Expanding DCCEEW’s offices across Australia to attract and retain a skilled workforce.
Performance reporting
2.7DCCEEW has a total of 21 performance measures that are separated into four outcome areas, ‘Climate Change and Energy’, ‘Environment’, ‘Antarctica’, and ‘Water’. Each of these performance measures was presented with a summary of the results achieved against relevant criteria and targets. Of these 21 performance targets, thirteen were achieved, six were ‘partially or mostly achieved’, one was not achieved, and one was listed as ‘not applicable’. Comparatively, in the 2022-23 annual report, out of the total nineteen performance targets, ten were met, eight were partially met and one was not met.
2.8The performance measure Number of Environment Protection and Biodiversity Conservation Act 1999 approved projects that were subject to active compliance monitoring,which is part of the Environment outcome,was listed as ‘not applicable’. This is a new performance measure for DCCEEW, and the target of this measure was to use approved projects and risk-based compliance analysis to determine a baseline target in 2024-25 and onwards.
2.9Similar to the previous reporting period, the performance measure Stability or improvement in the Threatened Species Main Index (TSX), which is part of the Environment outcome, was listed as ‘not achieved’. While the decline in the TSX is continuing, it is at a rate less than the previous year, and when separated out into categories, there is a stabilisation in birds and mammals, with plants still declining.
Financial reporting
2.10DCCEEW’s annual report provided a summary of its financial performance in 2023-24. The department reported a total comprehensive surplus of $15.1 million, compared to the comprehensive loss of $75.7 million in 2022-23.
2.11DCCEEW explained a number of major budget variances in the year ended 30June 2024. Theses variances include:
Higher employee expenses than expected for the period. DCCEEW offset this by actively reducing its use of contractors and consultants;
Revenue from the government was higher than budgeted due to additional funding received through the 2023-24 Portfolio Additional Estimates Statements;
Contributed equity was lower than budgeted due to appropriation that was repealed in 2023-24; and
Total cash received for operating activities was higher than budgeted, as other cash was received from arrangements with other government agencies.
2.12The Secretary and the Chief Finance Officer stated that the financial statements provided in the annual report comply with the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and that they have reasonable grounds to believe that DCCEEW will be able to pay its debts when they come due.
2.13The Australian National Audit Office (ANAO) independent report found that DCCEEW’s financial statements for the year ended 30 June 2024 were compliant and presented fairly the financial position, financial performance and cash flows of the entity.
2.14Overall, the committee considers DCCEEW’s 2023-24 annual report to be ‘apparently satisfactory’.
Great Barrier Reef Marine Park Authority
2.15The 2023-24 annual report for the Great Barrier Reef Marine Park Authority (GBRMPA) was presented out of sitting in the Senate on 16 October 2024 and tabled in the House of Representatives on 4 November 2024.
2.16In his review, Chief Executive Officer, Mr Josh Thomas provided several updates on reef health, projects and plans within the agency, and key partnerships during the 2023-24 reporting period. These included:
Work being done on the Crown-of-thorns Starfish Control Program to protect the reef from predation;
Completion of the Douglas Shoal remediation in response to damage caused by a coal carrier running aground in April 2010;
Publication of the Reef Snapshot: Summer 2023-24;
Release of the Great Barrier Reef Blueprint for Climate Resilience and Adaptation in February 2024;
Engagement with Traditional Owners under the Traditional Use of Marine Resources Agreements Program; and
Movement into the new Townsville office, bringing workplace standards in line with the broader Australian Public Service.
Performance reporting
2.17GBRMPA’s overarching purpose for the reporting period was to ‘provide for the long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef for all Australians and the international community through the care and development of the Marine Park’.
2.18GBRMPA assessed its performance in 2023-24 against four corporate plan objectives, which together contain a total of 15 criteria. Of these criteria, 10 were achieved, two partially achieved, and three not achieved.
2.19Under the corporate plan Objective 1:Enhancing Reef resilience by providing expert knowledge to advise key decision makers on managing, reducing or avoiding significant threats to the Reef the following criterion was not achieved:
Criterion 1.2 Improved trust level sentiment score was not achieved, with the targeted 8.4 out of 10 not being reached, instead reaching 8.17. This criterion acts as a measure of how the organisation is perceived by the broader public. This score is lower than the previous two reporting periods, with 2022-23 reporting a score of 8.36, and 8.43 in 2021-22.
2.20Under the corporate plan Objective 2: Enhancing Reef resilience through innovation, management and regulation of the Marine Park and our in-field presence,the following criterion was not achieved:
Criterion 2.2 Percentage of coral trout biomass in Marine Park Green Zones exceeding that of General Use Blue Zones, as an indicator for Reef health was not achieved. The target of 95 per cent was not achieved, instead it reached 93 per cent. This criterion relates to the zoning of the Marine Park, comparing between take and no-take zones, however GBRMPA noted that this figure can be affected by environmental events such as cyclones, and often varies year to year.
2.21Under the corporate plan Objective 3: Enhancing Reef resilience through partnerships, collaboration and education, several of the criteria were either partially achieved or not achieved:
Criterion 3.1 Participants in Reef Authority education and engagement programs are taking actions that support the Reef’s long-term protection was partially achieved. This criterion is calculated by assessing targets across a range of programs. In this case, four of the six programs met the 85 per cent target, however overall, the average was below that figure.
Criterion 3.2 Reef Authority online communication tool usage was partially achieved. This criterion had two metrics for measuring achievement: engagement with websites and engagement with social media. While the engagement with websites was below the targeted 383 800 engaged sessions, reaching only 294 028, the social media engagement exceeded the target of 3.5 million engagements, reaching over 7.3 million engagements.
Criterion 3.3(a) Number of Traditional Owner groups with formal partnerships in place was not achieved. GBRMPA did not meet their target of two Traditional Owner groups with formal partnerships in place. GBRMPA currently has one agreement in place with the Wuthathi Aboriginal Corporation.
Financial reporting
2.22The annual report provided a summary of GBRMPA’s financial performance in 2023-24. It reported a total comprehensive loss of $6.8 million in the 2023-24 reporting period, which was lower than the $19.3 million loss in the previous reporting period.
2.23The statements made some comments on budget variances relating to comprehensive income, including:
The allocated budget of $37.3 million for employee benefits was not fully utilised due to vacancies in the agency;
Supplier costs were higher due to increased information technology services, and additional contracts and projects;
Permit fees that were paid to GBRMPA were lower than expected due to lower applications from customers; and
Increases in grant revenue due to additional works funding for the Reef Islands Restoration Project.
2.24The Chief Executive Officer and the Chief Financial Officer stated that the financial statements provided in the annual report comply with the PGPA Act, and that they have reasonable grounds to believe that GBRMPA will be able to pay its debts when they come due.
2.25The ANAO independent report found that GBRMPA’s financial statements for the year ended 30 June 2024 were compliant and presented fairly the financial position, financial performance and cash flows of the entity.
2.26The committee considers GBRMPA’s 2023-24 annual report to be ‘apparently satisfactory’.
Communications and the Arts portfolio
Department of Infrastructure, Transport, Regional Development, Communications and the Arts
2.27The 2023-24 annual report for the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA) was presented out of sitting in the Senate on 29 October 2024 and tabled in the House of Representatives on 4 November 2024.
2.28In his review, Secretary Jim Betts outlined the department's work across its diverse outcomes. In the Communications and the Arts areas, the achievements included:
The release of the First Nations Digital Inclusion Advisory Group report in October 2023 which helped provide guidance to the government to achieve the target on digital inclusion of the National Agreement on Closing the Gap;
Supporting an independent review of the Online Safety Act 2021, and provided support for the government to introduce the Communications Legislation Amendment (Prominence and Anti-siphoning) Bill2024 to allow continued free access to nationally important sporting events;
Establishing a pilot program to support the National Gallery of Australia to share artworks from the National Collection with regional and suburban galleries across the country;
Securing significant funding for Indigenous language centres and activities to support community-led language learning.
Performance reporting
2.29DITRDCA updated several of its performance measures and targets in the2024‑25 Portfolio Budget Statements that were initially outlined in its Corporate Plan 2023-24. The below examination is based on the performance measures that appear in the annual report.
2.30Of DITRDCA’s six outcomes, two relate to the Communications and the Arts portfolio, namely ‘Communications connectivity’ and ‘Creativity and Culture’. Of the twelve performance measures listed under these two outcomes, the department reported nine as met, one as partially met, and two as ‘no target'. Comparatively, in the 2022-23 annual report, out of the total fourteen performance measures listed under Communications and the Arts, four were met, three were partially met, one was not met, one had ‘no target’, and the remaining five were unable to be assessed or had limited data to establish if the goal had been met.
2.31The five performance measures listed under Outcome 5: Communications Connectivity were all listed as ‘target met’.
2.32Of the seven performance measures listed under Outcome 6: Creativity and Culture,four were listed as ‘target met’, one as ‘target partially met’ and two as ‘no target’.
2.33The target for the performance measure Progress against the development, release and implementation of the Arts and Disability Associated Planwas ‘partially met’. In 2023-24 the Arts and Disability Associated Plan was substantially drafted, informed by significant Commonwealth and stakeholder consultation. This progress is an improvement on the 2022-23 period, where the target was not met.
2.34The performance measure related to the funding agreements for the Indigenous Repatriation Program was listed as ‘no target’. DITRDCA did not set a target for this performance measure in 2023-24, however during this period DITRDCA has reached a number of agreements with collecting institutions internationally and supported the repatriation of many ancestors to their Country.
2.35For the performance measure relating to activities to support Indigenous languages and arts, data for the second half of the 2023-24 period was not available until 30 September 2024. The results will be reported in the 2024-25 annual report. A delay for similar reasons occurred in the 2022-23 reporting period.
Financial reporting
2.36The annual report provided a summary of DITRDCA’s financial performance in 2023-24. DITRDCA reported a total comprehensive loss of $48.1 million, compared to the figure from 2022-23, which was a total comprehensive loss of $15.1 million and the original budgeted figure for 2023-24 was a comprehensive loss of $16.9 million.
2.37The Secretary and the Chief Financial Officer stated that the financial statements provided in the annual report comply with the PGPA Act, and that they have reasonable grounds to believe that DITRDCA will be able to pay its debts when they come due.
2.38DITRDCA reported several budget variances for the year ended 30 June 2024 and provided explanations, including:
Grants were lower than budgeted due to a government decision to bring forward a lower percentage of Financial Assistance Grant program payments, as well as delays in delivering regional development and communication service programs.
2.39The ANAO’s independent report found that DITRDCA’s financial statements for the year ended 30 June 2024 were compliant and presented fairly the financial position, financial performance and cash flows of the entity.
2.40Overall, the committee considers DITRDCA’s 2023-24 annual report to be ‘apparently satisfactory’.
National Gallery of Australia
2.41The National Gallery of Australia’s (NGA) 2023-24 annual report was presented out of sitting in the Senate on 31 October 2024 and tabled in the House of Representatives on 4 November 2024.
2.42In his review, Director Nick Mitzevich outlined the key achievements of the NGA in 2023-24, including:
The acquisition of 382 new artworks, reflecting the NGA’s commitment to improving and balancingits collection by prioritising the works of First Nations and women artists;
Launching a major project to revitalise the Sculpture Garden to complement the design of the NGA building and the broader national capital;
Achieving a 73 per cent completion rate of the NGA’s Gender Equity Action Plan;
The NGA’s Innovate Reconciliation Action Plan, which will assist the NGA in centring First Nations voices, was provisionally approved in May 2024;
The NGA capital works lighting project was completed in November 2023, upgrading the original lighting system to a significantly more efficient and sustainable Light Emitting Diode light system.
Performance reporting
2.43The NGA’s outcome for the reporting period was ‘Increased understanding, knowledge and enjoyment of the visual arts by providing access to, and information about, works of art locally, nationally and internationally’.
2.44The NGA assessed its performance against 10 measures that are underpinned by the pillars of the National Cultural Policy. These 10 measures fall under four sections: ‘Collection’, ‘Connection’, ‘Distinct Identity’ and ‘Capability’. Of these 10 measures, the NGA appeared to achieve all of them to some degree, however some of the measures lack quantifiable targets. Some of the measures of note include:
The measure: 10 works of singular outstanding quality added to the national collection was not explicitly stated to have been achieved, however the NGA noted that ‘the process for determining what works of art are of singular and outstanding quality is as much about informed judgement as it is about technical assessment’. Several notable acquisitions occurred in the reporting period, including the purchase of Clifford Possum Tjapaltjarri’s Untitled—Snake Dreaming 1972, which is described as ‘perhaps the most historically important work of art by a First Nations Australian artist purchased this year’.
The NGA exceeded its target of 350,000 visitors onsite, achieving a total number of onsite visitors of 455 088 for the reporting period. The NGA attributes this to its program of exhibitions, collection displays, public programs and special events.
The measure: Establish partnerships to advance First Nations art internationally did not have a numerical target. The NGA stated that it has formed several partnerships internationally for the purpose of advancing First Nations art. A notable example of this is the Nguluway Dhuluyarra Fellowship, which is a collaboration between the NGA, the Embassy of the Kingdom of the Netherlands in Australia, and the Wereldmuseum in the Netherlands.
Financial reporting
2.45The annual report provided a summary of the NGA’s financial performance in 2023-24. The NGA reported a total comprehensive income of $7.9 million; in comparison, the reported figure from 2022-23 was a total comprehensive loss of $17.1 million and the original budgeted figure for 2023-24 was a comprehensive loss of $11.1 million.
2.46The Council, the Director and the Chief Finance Officer stated that the financial statements provided in the annual report comply with the PGPA Act, and that they have reasonable grounds to believe that the NGA will be able to pay its debts when they come due.
2.47The NGA reported several budget variances for the year ended 30 June 2024 and provided explanations, including:
Lower expenses than originally budgeted for as a result of supplier expenses being under budget across a number of areas;
Own source revenue was $15.6 million greater than the original budget of $19.5 million. This was in part due to significant donations for artwork acquisition along with unbudgeted in-kind revenue as well as contributions revenue that exceeded the budget by $10.2 million. The remainder of the excess was primarily from interest and investments.
2.48The ANAO’s independent report found that the NGA’s financial statements for the year ended 30 June 2024 were compliant and presented fairly the financial position, financial performance and cash flows of the entity.
2.49Overall, the committee considers NGA’s 2023-24 annual report to be ‘apparently satisfactory’.
Senator Karen Grogan
Chair