Overview

In April 2002, the Australian National Audit Office (ANAO) tabled Audit Report No.40 2001–02 Corporate Governance in the Australian Broadcasting Corporation (the 2002 audit). The 2002 audit made 14 recommendations for improvement, of which the Australian Broadcasting Corporation (ABC) agreed with 12, and agreed with qualification to the remaining two.

In December 2002, the Joint Committee of Public Accounts and Audit (JCPAA) tabled Report 393—Review of Auditor¬General's Reports 2001–02 Fourth Quarter (the JCPAA report), which reviewed aspects of the ANAO's 2002 audit. The JCPAA made three recommendations to the ABC that build on matters addressed in recommendations from the 2002 audit.

In August 2003, the ABC submitted a report to the JCPAA on its progress in implementing the recommendations from the 2002 audit and the JCPAA report. This follow-up audit examined the ABC's implementation of recommendations from both reports, using the ABC's progress report as its base.

Background

The Australian Broadcasting Commission became the Australian Broadcasting Corporation (ABC) in 1983 with the passage of the Australian Broadcasting Corporation Act 1983 (the ABC Act). The ABC is one of Australia's core institutions that helps to reflect Australia's national identity; foster the arts; and encourage cultural diversity. The presence of an independent national broadcaster, such as the ABC, is considered by many commentators to play a vital role in any well functioning democracy.

Key Findings

2002 audit

The ANAO found that the ABC:

ABC Corporate Planning

• is on track to implement Recommendation No.1 relating to the 2004–07 Corporate Plan when the next ABC Corporate Plan is finalised in late 2003–04;
• has substantially implemented Recommendation No.2 relating to aligning Portfolio Budget (PBSs) Statements to the Corporate Plan;
• is on track to implement Recommendation No.3 relating to IT strategic planning late in 2003–04 once the IT strategic plan has been completed and the Plan's governance arrangements for IT have been put in place;
• has implemented Recommendation No.4(c) and partially implemented Recommendation No.4(a) and (b), relating to schedule management;
• has implemented Recommendation No.10 relating to inter-divisional service arrangements;

Independence, Accuracy and Impartiality

• has implemented Recommendation No.5 relating to adherence to Editorial Policies;
• has substantially achieved the thrust of the requirements of Recommendation No.6 relating to a single statement of broadcasting standards;
• has implemented Recommendation No.7(a) and (c) and partially implemented Recommendation 7(b), relating to editorial arrangements;
• has implemented Recommendation No.8(a) and partially implemented Recommendation No.8(b), relating to program quality reviews;
• has implemented Recommendation No.9 relating to audience feedback;

Performance Management

• has implemented Recommendation No.11(a) and partially implemented Recommendation No.11(b), relating to outputs/outcomes-based financial and performance information;
• has implemented Recommendation No.12(b) and partially implemented Recommendation No.12(a), relating to linking the Charter to the Corporate Plan, PBS and Annual Report;
• has implemented Recommendation No.13(a) and is on track to implement Recommendation No.13(b), relating to audience reach and share analysis, when the next ABC Corporate Plan is finalised in late 2003–04; and
• has implemented Recommendation No.14 relating to regional audience research.

JCPAA Report 393 recommendations

All three JCPAA recommendations build on matters addressed by the ANAO in the 2002 audit report. The ANAO has addressed progress against the JCPAA recommendations by reference to progress against the 2002 audit recommendations.

The ANAO found that the ABC has:

• implemented JCPAA Recommendation 1 due to the actions taken to address Recommendation Nos.9 and 14 from the 2002 audit;
• partially implemented JCPAA Recommendation 2 due to the actions taken to address Recommendations Nos.1, 2, 4, 11 and 12 from the 2002 audit; and
• substantially implemented JCPAA Recommendation 3 due to the actions taken to address Recommendations Nos.5, 8, 9, 12 and 13 from the 2002 audit.

Conclusion

The ANAO considers that the ABC has made considerable progress to address all recommendations from the 2002 audit and the JCPAA report. In the two years since the tabling of the 2002 audit report, nine of its 14 recommendations have been fully implemented or are on track for timely implementation in the near future. Parts of the five remaining recommendations have been fully implemented, with the other parts being partially implemented. The ABC has fully implemented one of the JCPAA recommendations, substantially implemented another and partially implemented the third. The ANAO has made suggestions for improvement throughout this report, as well as one further recommendation to enhance the operation of program quality reviews.

ABC Response

The ABC welcomes the acknowledgement that it has achieved considerable progress towards the full implementation of the original ANAO recommendations.

The 14 recommendations consist of 25 parts, of which the ANAO found 19 (76 per cent) to have been fully implemented and the remainder partially implemented. The Board and management remain committed to the implementation process in achieving consistently high standards of corporate governance.

The ABC agrees with the new recommendation regarding the further development of the system of program quality reviews for News and Information output.