1.1 FROM THE CHIEF EXECUTIVE OFFICER

Head and shoulders of Professor Sue Thomas, Chief Executive Officer, wearing a black jacket.

Professor Sue Thomas, ARC CEO

As the Chief Executive Officer of the Australian Research Council, I am pleased to present the ARC Annual Report 2018–19.

Throughout the year, the ARC has contributed to the growth of knowledge and innovation for the benefit of the Australian community. We funded the highest quality research through the National Competitive Grants Program (NCGP), a core component of the Australian Government's investment in research and innovation. We evaluated the quality, engagement and impact of research, finalising the Excellence in Research for Australia (ERA) 2018 Report and our inaugural Engagement and Impact (EI) assessment. We provided timely, impartial and expert research policy advice, and actively sought opportunities to improve the effectiveness and efficiency of our processes.

The Annual Report is a key opportunity for the ARC to document the outcomes it has achieved, and to reflect on opportunities for future growth.

The ARC remains committed to funding nationally and internationally competitive research. In 2018–19 the NCGP supported 1155 new research projects, involving 2464 researchers.

The ARC recognises the importance of ensuring the funding we administer is returned to the community through benefits to Australia. In late 2018 the Australian Government announced the introduction of the National Interest Test, to be applied to all NCGP schemes. The National Interest Test provides the Australian public with further assurance that ARC-funded research will continue to deliver positive economic, environmental, social, health and cultural outcomes.

The value of the NCGP reflects not only the benefits delivered through individual research projects, but also the underlying support it provides to the national research and innovation system. Our schemes support researchers at all career stages, and provide research training and mentoring opportunities. They invest in the infrastructure, equipment and facilities underpinning Australia's international research competitiveness, and encourage university researchers to productively partner with commercial, government, community and international stakeholders. Our schemes recognise the value of all disciplines in addressing the significant issues facing Australia.

The outcomes of the ERA 2018 assessment were released in March 2019, evaluating the quality of Australian university research against international benchmarks. The assessment found that the quality of our national research output continued to improve, compared to outcomes from three years ago. Of the 506,294 unique research outputs submitted, 90 per cent were assessed as being at, above, or well above, world standard.

In March 2019 the ARC also finalised the inaugural EI assessment. This assessment highlighted the extensive, diverse and innovative ways Australian universities engage with business, community, government and end-users. It also demonstrated how research being produced by Australian higher education institutions is delivering public benefits well beyond the realm of scholarship.

The findings of the ERA 2018 and EI 2018 assessments demonstrate the exceptional effort, ingenuity and commitment of Australian university researchers. We warmly congratulate the national research and innovation sector on these results.

The ARC engages in a range of research policy development activities to underpin program delivery. During 2018–19 we:

  • finalised an updated version of the ARC Reconciliation Action Plan
  • developed and released the ARC Early Career Researchers Statement of Support
  • finalised revisions to the ARC Statement of Support for Assessors within the National Competitive Grants Program
  • reviewed and updated the ARC Medical Research Policy
  • reviewed and updated the ARC Research Integrity Policy
  • released the ARC Intellectual Property Policy
  • partnered in the development of guides supporting the Australian Code for the Responsible Conduct of Research.

The ARC managed resourcing of $796.7 million in 2018–19, comprising $774.0 million for the administered appropriation and $22.7 million for the departmental appropriation. Of the ARC's administered expenditure, $766.4 million was used to fund the NCGP. Further information on the financial performance of the agency is provided in Section 3.2.

Through ongoing innovations to our Research Management System, the ARC has developed a digital platform that leads the way in Australian Government grants administration. A key achievement in 2018–19 was to enhance functionality by allowing research outputs to be automatically populated within a user's profile. This capability supports the streamlining of research output data collection and retention, effectively reducing the burden on applicants for the repeated manual entry of publication information.

The ARC is supporting the review of the Australian and New Zealand Standard Research Classification (ANZSRC). This work is being undertaken in collaboration with the Australian Bureau of Statistics, Statistics New Zealand and the New Zealand Ministry of Business, Innovation and Employment. This review, which will ensure our research classifications remain contemporary and align with changes in the research sector, is expected to be finalised by mid-2020.

In the second half of 2018 the ARC commenced the Streamlining NCGP Project, a systematic examination of how the ARC administers the entire grant life cycle. In late 2018 the ARC also welcomed representatives from the Australian National Audit Office (ANAO), who assessed the effectiveness of the ARC's administration of the NCGP. These reviews are providing further opportunities for the ARC to reflect on its approach to grants administration.

The Special Research Initiatives (SRI) scheme provides funding to new and emerging fields of research, and builds capacity in strategically important areas. Over the reporting period, the ARC administered two programs within the SRI scheme. The PFAS (Per- and Poly-Fluoroalkyl Substances) Remediation Research Program is supporting the development of innovative technologies to investigate and remediate PFAS-contaminated areas, while the Special Research Initiative in Excellence in Antarctic Science was established to examine the strategic, economic, scientific and environmental significance of Antarctica to Australia. The SRI scheme demonstrates the ARC's capacity to administer grant schemes in partnership with other Australian Government agencies.

The ARC is looking forward to a busy 2019–20. Over this period, we will continue working towards finalising the evaluation of ANZSRC to ensure that our research classifications reflect current practice and remain responsive to changes in the sector.

We will be commencing a review of the ERA and EI activities to maintain methodological rigour and the support of the university sector. Australia's innovative strength is well known overseas, and this strength is underpinned by the excellence that is found across all research disciplines and in universities all around the country—as we know, from measuring Australian research against world-standard benchmarks in our State of Australian University Research 2018–19: ERA National Report, which is accessible through the ARC website, www.arc.gov.au > ERA > ERA 2018 National Report. The impact of this research on the lives of ordinary Australians is significant. The ARC's EI 2018 assessment represents a national mechanism for understanding how universities are translating their research into economic, environmental, social, cultural and other benefits for the Australian community.

The ARC has accepted the three recommendations of the ANAO's recent performance audit of the NCGP, which found that the ARC has mature and effective processes in place to assess grants and manage conflicts of interest. The ANAO also identified instances of good practice at the ARC. In the coming year, the ARC will remain committed to continuous improvement, identifying and implementing further enhancements to the systems and processes which underpin our programs.

The ARC's Streamlining NCGP Working Group has identified a range of streamlining opportunities in grant guidelines, applications, assessment, agreement variations, progress reports, final reports and Selection Advisory Committee processes, which will be implemented gradually over 2019–20. The agency will continue its benchmarking and streamlining activities in this area including any necessary refinements to our Key Performance Indicators to deliver robust efficiency measurements and manage risk in support of our Corporate Plan and broader objectives.

Portfolio Budget Statements 2019–20 priorities
  • delivering the NCGP effectively and efficiently, including responding to any recommendations from the ANAO audit into the administration of the NCGP
  • continuing to provide high quality advice to the Minister on research matters including in areas of Government focus (for example, strengthening linkages between research and business)
  • analysing and disseminating data and insights arising from the ERA and EI exercises for the benefit of Government, universities, and other stakeholders
  • reviewing the ERA and EI exercises
  • working with stakeholders in delivering program and policy responsibilities, including through consultations and in raising awareness of research funded by the ARC
  • continuing to monitor the performance of selected NCGP schemes through scheduled reviews and evaluations
  • ensuring that the NCGP supports participation by all researchers, including Aboriginal and Torres Strait Islander researchers, women researchers and early and mid-career researchers
  • maintaining a strong governance framework to support delivery against legislative requirements as well as the Government's expectations for the agency as articulated in the ARC outcome statement.

The achievements documented within this Annual Report reflect the efforts of a diverse range of national and international stakeholders. In particular, I would like to acknowledge the work of our former Executive General Manager, Ms Leanne Harvey, who left the ARC in December 2018. Leanne worked at the ARC for over a decade, and her contributions to the agency were innumerable.

The Australian research sector is a wonderful community to support, with new incredible stories of innovation and discovery year on year. Our lives and culture are much richer for the work of our research community, and I thank them for what they give back to us all.

I look forward to the year ahead and achieving our 2019–20 goals which reflect the ARC's purpose—to grow knowledge and innovation for the benefit of the Australian community.