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This annual report for 2002-03 contains information about the Department of Education, Science and Training's (DEST's) role, its corporate governance arrangements and management accountability framework, and its performance against the outcomes and outputs framework set out in the 2002-03 Portfolio Budget Statements. The first two chapters contain the Department Secretary's review of the year and an overview of DEST. Chapters three to five report on DEST's performance in achieving the following outcomes: students acquire high quality foundation skills and learning outcomes from schools; individuals achieve relevant skills and learning outcomes from post-school education and training for work and life; and Australia has a strong science, research and innovation capacity and is engaged internationally in science, education and training to advance its social development and economic growth. Chapter six looks at management and accountability arrangements. Included as appendices are: Occupational health and safety; Freedom of information; Payments to advertising and marker research organisations; Discretionary grants; Consultancies; Ecologically sustainable development and environmental performance reporting; Commonwealth disability strategy; Financial statements; Glossary and acronyms; Tables and figures.