Chapter 2Overview of annual reports examined
2.1This chapter examines all annual reports presented in accordance with Standing Order 25(20)(a), and a selected annual report in greater detail in accordance with Standing Order 25(20)(b). The Foreign Affairs, Defence and Trade Legislation Committee (the Committee) has selected the annual report of the Australian Strategic Policy Institute for examination. The following summary highlights the findings in relation to the annual report examined.
Performance reporting
Availability of performance framework documents
2.2The availability of relevant performance framework documents is essential to assess a body’s level of achievement of planned performance. Commonwealth entities and companies are required to set out in their corporate plan each year, how they will achieve their purpose and how their performance will be measured and assessed.
2.3The Committee has monitored the availability of the annual report, the corporate plan and portfolio budget statements (PBS) for the relevant bodies it has oversight of. Since the launch of the Transparency Portal in 2019, the Committee has also monitored the availability of these documents on the Transparency Portal.
2.4All of the examined 2023–24 annual reports for Commonwealth entities and companies were available in HTML format on the Transparency Portal and in PDF format on the relevant bodies’ website.
2.5All 2023–24 corporate plans for the bodies whose annual reports were examined were located and available for reference.
2.6As noted in the Committee's Annual reports (No. 1 of 2025), all the 2023–24 Portfolio Budget Statements (PBS) for the Department of Defence (Defence) and the Department of Foreign Affairs and Trade (DFAT) were available on the Transparency Portal and on their respective websites.
'Clear read' principle
2.7The Department of Finance (Finance) guidance on annual performance statements noted the importance of the alignment of the annual performance statement with the corporate plan and the PBS. The guidance states:
Annual performance statements should include information that demonstrates the connection between the corporate plan, PBS and annual performance statements to enable a ‘clear read’ across the three documents.
To achieve this, entities may wish to include a diagram demonstrating how the performance information fits together across the documents, or page number references to the corresponding information in corporate plans and the PBS.
It is good practice for entities to set out the discussion of the achievement of performance in their annual performance statements in the same order as the corporate plan, reinforcing the connection between the documents. Each performance measure should also be expressed in a consistent way to aid the clear read between its planned performance information and performance results.
2.8Overall, most annual reports examined demonstrated a 'clear read' between the review of performance presented in the annual reports and the source documents. The Committee has previously noted the inclusion of references in the performance information to the relevant part of the corporate plan or PBS for each measure assists in the examination of these reports. The Committee notes that a number of entities failed to include relevant references to their corporate plans and PBSs.
Australian Strategic Policy Institute
2.9The Australian Strategic Policy Institute (ASPI) is a Commonwealth company under the Defence portfolio. ASPI tabled its 2023–24 annual report in the Senate out of session on 19 December 2024 and in the House of Representatives on 4 February 2025. The report was submitted to the Minister on 31 October 2024.
Chair and Executive Director’s review
2.10In their review for the 2023–24 reporting period, Executive Director Justin Bassi and Council Chair Gai Brodtmann noted Australia is facing its most dangerous strategic era in generations due to multiple conflicts, crises and points of tension. They also discussed how ASPI’s policy-focused research is contributing to Australia being better placed to navigate global turbulence.
2.11The Council Chair and Executive Director highlighted the complex topics of discussion ASPI contributed to, from deterrence to disinformation to cyber security and climate security. They also noted ASPI’s significant research publications, including:
The Cost of Defence report;
analytical work on deterrence, AUKUS and defence force recruitment in the Pacific;
maintaining and strengthening national resilience; and
the Critical Technology Tracker revealing a shift in research leadership from the United States to China.
2.12They also highlighted ASPI’s communications platform, The Strategist, in addition to launching a new podcast which ASPI claimed has quickly established itself as a leading podcast on national security.
2.13The Executive Director and Council Chair recognised women’s participation in national security. They pointed out that 2024 marked the 10th anniversary of ASPI’s Women in Defence and Security Network which provides a forum for women to build professional networks across defence and security sectors.
Performance reporting
2.14ASPI’s performance reporting framework is set out in its Corporate Plan 2023–27 (Corporate Plan). ASPI had six objectives, including a new objective to 'Achieve new funding and revenue streams'. The other five objectives are:
Conduct and publish research;
Provide government with an alternative source of strategic policy ideas and advice;
Stimulate public discussion on key aspects of defence and security policy;
Promote international understanding; and
Develop expertise.
2.15The Committee notes that whilst a new objective was added to the Corporate Plan, ASPI has only commented on achieving ‘new funding and revenue streams’ in ‘Annex I: ASPI by the numbers’. The Committee encourages ASPI to comment on this measure in the relevant annex for performance alongside existing performance measures in future annual reports, with particular focus on new revenue streams.
2.16When measuring performance, ASPI detailed how it measures achievements, who benefits and what was achieved against its purposes.
2.17In commenting on its first performance measure, 'conduct and publish research', ASPI reported it published five publication series, resulting in 32 publications produced. ASPI also reported it had 815 pieces in The Strategist (ASPI’s official blog) from 338 individual authors.
2.18ASPI’s second performance measure, 'provide an alternative source of strategic policy ideas and advice',contains two measures of achievement. The two measures are:
participation in government advisory committees and expert panels;and
submissions to parliamentary inquiries.
2.19ASPI reported staff were invited to participate in four government advisory committees and expert panels and provided nine submissions to parliamentary inquiries.
2.20The third objective, 'stimulate public discussion',contains three measures of achievement. These were:
the number and range of ASPI's public events;
published opinion pieces; and
website, The Strategist and social-media usage.
2.21ASPI reported conducting 92 events, 43 opinion pieces written by ASPI staff that were published, increased online traffic on ASPI’s website and increased viewings of The Strategist.
2.22ASPI’s fourth performance measure, 'promote international understanding',contained four measures of achievement. The measures of achievement are:
Ranking in University of Pennsylvania’s Global Go To Think Tank Index;
Invitations to speak at international conferences;
Links with overseas think tanks; and
Participation in and hosting of international dialogues.
2.23ASPI reported it finished 13th in the University of Pennsylvania’s 2023 Global Go To Think Tank Index which was the highest ranking achieved by an Australian institution. It also reported ASPI staff attended 26 international conferences as speakers, and it hosted eight visiting fellows. Additionally, ASPI participated in a number of dialogues and collaborated with over 40 overseas think tanks.
2.24In 'developing expertise', ASPI's fifth performance measure, ASPI reported hosting 14 interns in the 2023–24 reporting period. Of these, three interns were based full-time in Canberra and 11 part-time interns were based in Washington DC.
Financial reporting
2.25While ASPI reported a loss of $2.6 million for the 2023–24 reporting period, it is worth nothing that in accordance with AASB1058, the $5,000,000 of funding provided by the Department of Defence for ASPI’s Washington DC office was realised in financial year 2020–21. Expenses related to ASPI’s Washington DC office's second year of operation were realised in the 2023–24 financial year.
2.26In its financial reporting, ASPI provided a breakdown of revenue funding sources for the reporting period. During the 2023–24 reporting period, the Department of Defence provided over 30 per cent of ASPI’s total revenue, followed by other federal government agencies which provided a further 28.8 per cent of funding. ASPI noted that the diversified funding base ensures its ability to conduct research and analysis is free from undue influence.
Other matters
2.27In the Committee's Annual reports (No. 2 of 2024), the Committee explained that the inclusion of page number references in the list of requirements for annual reports greatly increases transparency and oversight, including by increasing the reader's ease to locate information required by the PGPA Rule.
2.28The Committee acknowledges that ASPI has incorporated page number references in its list of requirements for its 2023–24 annual report. The Committee welcomes this inclusion and looks forward to seeing it continued in ASPI’s future annual reports.
Statistics on employees – PGPA Rule requirement 28E(ga)
2.29The Committee commented in its Annual reports (No. 2 of 2024) that ASPI did not fully comply with section 28E(ga) of the PGPA Rule. This section requires entities to include statistics about both ongoing and non-ongoing employees, including the number of full-time and part-time employees, their gender and staff location. When commenting previously, the Committee highlighted ASPI only provided statistics on non-ongoing employees and failed to include statistics for ongoing employees and staff locations when reporting for this requirement.
2.30The Committee notes ASPI reported statistics on workforce composition and staff locations in its current annual report; however, it neglected to break down these statistics by ongoing and non-ongoing employees as required by the PGPA Rule. It is troubling that ASPI has again excluded these statistics, especially considering the Committee previously commented on ASPI’s failure to fully comply with this section of the PGPA Rule.
Audit committee – PGPA Rule requirement 28E(ob)
2.31ASPI did not fully comply with section 28E(ob) of the PGPA Rule. This section requires entities to provide the following information about the audit committee:
(a)a direct electronic address of the charter determining the functions of the audit committee;
(b)the name of each member of the audit committee;
(c)the qualifications, knowledge, skills or experience of each member of the audit committee;
(d)information about each member’s attendance at meetings of the audit committee; and
(e)the remuneration of each member of the audit committee.
2.32ASPI reported the names of each member of the audit committee, their qualifications, attendance at meetings and renumeration; however, ASPI did not provide a direct electronic address to the charter determining the functions of the audit committee.
2.33The Committee urges ASPI to take care when preparing its annual report to ensure all aspects of PGPA Rule requirements are reported. The Committee encourages ASPI to ensure this oversight is corrected in ASPI’s future annual reports.
Conclusion
2.34The Committee thanks ASPI for including page number references in its list of requirements for its 2023–24 annual report and notes this greatly aids in transparency and locating information as required by the PGPA Act and PGPA Rule.
2.35On balance, the Committee considers this report to be 'apparently satisfactory'.
2.36However, it is deeply concerning that ASPI has again failed to fully comply with section 28E(ga) of the PGPA Rule regarding statistics on employees. The Committee notes this is the second year ASPI has failed to fully comply with this requirement.
2.37The Committee considers annual reports to be an important tool in transparency and accountability and encourages ASPI to ensure it is fully compliant with its reporting requirements. The Committee looks forward to ASPI including statistics broken down by ongoing and non-ongoing employees in future annual reports.
Senator Raff Ciccone
Chair