Chapter 1Introduction

1.1The Senate Environment and Communications Legislation Committee (the committee) is required under Senate Standing Orders to examine annual reports of entities within the Climate Change, Energy, the Environment and Water portfolio and the Communications and Arts portfolio.[1] This report examines annual reports tabled between 1 May and 31 October 2022.

1.2Annual reports are a primary accountability mechanism. They inform the Parliament, stakeholders and other interested parties of the operations and performance of public sector departments, agencies and companies. Additionally, annual reports are important reference documents and form part of the historical record of the Commonwealth.[2]

Terms of reference

1.3Under standing orders, the annual reports of certain departments and agencies are referred to the committee for examination and assessment. The committee is required to:

(a)Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;

(b)Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration;

(c)Investigate and report to the Senate on any lateness in the presentation of annual reports;

(d)In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;

(e)If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with the examination of estimates;

(f)Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year;

(g)Draw the attention of the Senate to any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and

(h)Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.[3]

Allocated portfolios

1.4The annual reports examined in this report are for the 2021-22 financial year.[4] Therefore, they predominately reflect the committee portfolio arrangements and the departmental structures in place at the end of the 46th Parliament.

1.5In accordance with the resolution of the Senate on 4 July 2019, as amended on 13 February 2020, the committee was responsible for the examination of the expenditure and outcomes of the following portfolios during the reporting period:

Agriculture, Water and the Environment portfolio, excluding Agriculture and Water;

Industry, Science, Energy and Resources portfolio, excluding Industry, Science and Resources; and

Infrastructure, Transport, Regional Development and Communications portfolio, excluding Infrastructure, Transport and Regional Development.[5]

1.6Following the May 2022 Federal election, a new administrative arrangements order was made on 1 June 2022, which consolidated the portfolios for which the committee is responsible into two departments. In accordance with the resolution of the Senate on 27 July 2022, the committee is now responsible for the following portfolios, which will be examined in future reports:

Climate Change, Energy, the Environment and Water; and

Infrastructure, Transport, Regional Development, Communications and the Arts (Communications and the Arts functions only).[6]

1.7Due to the date of the administrative order coming towards the end of the financial year, the portfolio departments the committee is responsible for scrutinising reported for 2021-22 as the entities that existed before the June 2022 administrative order.

1.8Both the Department of Agriculture, Water and the Environment (DAWE) Annual Report 2021-22, and the Department of Infrastructure, Transport, Regional Development and Communications (DITRDC) Annual Report 2021-22, are examined in this report, with a focus on the portfolio functions that remain within the committee’s remit, namely water and the environment for DAWE, and communications and arts for DITRDC.

1.9The Department of Industry, Science, Energy and Resources Annual Report 2021‑22 and the annual reports of energy entities attached to it prior to the revised portfolio arrangements are examined in the Economics Legislation Committee Report on Annual Reports (No. 1 of 2023).[7]

1.10Due to the water portfolio becoming the responsibility of the committee following the 2022 resolution of the Senate, this report examines the 2021-22 annual report of the Murray Darling Basin Authority.

1.11Future reports on annual reports by the committee will be based on the committee portfolio arrangements described in paragraph 1.6 above.

Reports examined

1.12This report examines the following reports, tabled in the Senate or presented out-of-session to the President of the Senate and referred to the committee between 1 May and 31 October 2022.[8]

Non-corporate Commonwealth entities

Department of Agriculture, Water and the Environment – Annual Report 2021-22;

Department of Infrastructure, Transport, Regional Development and Communications – Annual Report 2021-22;

Australian Communications and Media Authority and Office of the eSafety Commissioner – Annual Report 2021-22;

Bureau of Meteorology – Annual Report 2021-22;

Clean Energy Regulator – Annual Report 2021-22;

Climate Change Authority – Annual Report 2021-2022;

Great Barrier Reef Marine Park Authority – Annual Report 2021-22;

National Archives of Australia – Annual Report 2021-22; and

North Queensland Water Infrastructure Authority – Annual Report 2021-22.

Corporate Commonwealth entities

Australian Broadcasting Corporation – Annual Report 2022;

Australia Council for the Arts – Annual Report 2021-22;

Australian Film, Television and Radio School – Annual Report 2021-22;

Australian Institute of Marine Science – Annual Report 2021-22;

Australian National Maritime Museum – Annual Report 2021-22;

Australian Postal Corporation – Annual Report 2022;

Australian Renewable Energy Agency – Annual Report 2021-2022;

Clean Energy Finance Corporation – Annual Report 2021-22;

Director of National Parks – Annual Report 2021-22;

National Library of Australia – Annual Report 2021-22;

National Museum of Australia – Annual Report 2021-22;

National Portrait Gallery of Australia – Annual Report 2021-22;

Murray Darling Basin Authority – Annual Report 2021-22;

Screen Australia – Annual Report 2021/22; and

Special Broadcasting Service – Annual Report 2022.

Commonwealth companies

NBN Co Limited – 2022 Annual Report; and

Snowy Hydro Limited – Annual Report for the year ended 30 June 2022.

Statutory office holders or bodies

Australian Energy Infrastructure Commissioner – Annual Report 2021;

Classification Board and Classification Review Board – Annual Reports 2021-22;

Independent Scientific Committee on Wind Turbines – 2021 Annual Report; and

Public Lending Right Committee – Annual Report 2021-22.[9]

Reports not examined

1.13The committee is not obliged to report on Acts, statements of corporate intent, surveys, policy papers, budget documents, corporate plans or errata. The following documents were referred to the committee between 1 May and 31October 2022, but are not examined in this report:

Department of Agriculture, Water and the Environment – Australia State of the Environment – 2021 Overview;

2020 Independent Review of the Water Efficiency Labelling and Standards Scheme and Intergovernmental Agreement.

Climate Change Authority – Review of International Offsets August 2022;

Clean Energy Regulator – Quarterly Carbon Market Report for 1 October – 31 December 2021;

Wet Tropics Management Authority – Annual Report 2021-22;[10] and

Wet Tropics Management Authority – State of Wet Tropics 2021-2022.

1.14Each year the annual report of the Bundanon Trust is referred to the committee for examination. On 26 October 2022, a letter was tabled in the Senate explaining that the Bundanon Trust had been granted an extension under Section 34C of the Acts Interpretation Act 1901 to provide its annual report for 2021-22 by 25 November 2022.[11] There is no record of the Bundanon Trust tabling its 2021-22 annual report in the Senate by this date. The trust’s 2021-22 annual report may be examined in thecommittee’s Annual Reports (No. 2 of 2023).

Annual reporting requirements

1.15A performance reporting framework is established for all Commonwealth entities and companies by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The performance framework of the PGPA Act requires all Commonwealth entities to measure and assess their performance according to the requirements prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).[12]

1.16The PGPA Act requires all Commonwealth entities to prepare an annual performance statement and include those statements in their annual reports.[13] Entities use the annual performance statements to report on the results achieved against the targets, goals and measures established at the beginning of a reporting year in corporate plans and in any portfolio budget statements that were prepared for the reporting period. The PGPA Rule contains the minimum requirements that must be included.

1.17Below is a summary of the legislative authority and requirements for the different types of bodies under which annual reports are prepared:

Non-corporate Commonwealth entities: PGPA Act, section 46, and the PGPA Rule, subdivision 3A(A); for portfolio departments, the Parliamentary Service Act 1999, section 65; and for statutory bodies, relevant enabling legislation.

Corporate Commonwealth entities: PGPA Act, section 46, and the PGPA Rule, subdivision 3A(B); and for statutory bodies, relevant enabling legislation.

Commonwealth companies: PGPA Act, section 97, which also refers to requirements under the Corporations Act 2001 and the PGPA Rule, part 3-3; and for statutory bodies, relevant enabling legislation.

Statutory office holders and statutory bodies: statutory office holders or bodies are engaged or employed under an Act, which may prescribe annual reporting requirements pursuant to the office or body.

Non-statutory bodies: the annual reporting requirements are contained in the government response to the Senate Standing Committee on Finance and Public administration's Report on non-statutory bodies.[14]

Timeliness

1.18As part of its review of annual reports, the committee is required to investigate and report on any lateness in the presentation of annual reports.[15] In assessing the timeliness of the presentation of annual reports, the committee assesses the presentation against the requirements of the PGPA Act, the PGPA Rule and other legislative requirements.

Presentation to ministers

1.19The PGPA Act requires the provision of an annual report of a Commonwealth entity, including corporate and non-corporate entities, to the responsible minister by the 15th day of the fourth month after the end of the reporting period for the entity. For most agencies, this translates to 15 October each year. This part of the PGPA Act does not, however, provide a timeframe for the minister to present the report to the Parliament.[16]

1.20The arrangements for Commonwealth companies differ to some degree. The PGPA Act sets out the requirements for the provision of annual reports of Commonwealth companies to the responsible minister. In general, this amounts to four months after the end of the reporting period for each company.[17]

Tabling in Parliament

1.21The PGPA Rule states that annual reports for corporate Commonwealth entities, non-corporate Commonwealth entities and Commonwealth companies must comply with the Department of the Prime Minister and Cabinet's Guidelines for the Presentation of Documents to the Parliament.[18] In addition, the Department of Finance's resource management guides for corporate and non-corporate Commonwealth entities advise:

Normally annual reports are tabled on or before 31 October and it is expected annual reports are tabled prior to the October Estimates hearings. This ensures annual reports are available for scrutiny by the relevant Senate standing committee.[19]

1.22Entities reporting in accordance with their own legislation are often required to prepare for the relevant minister their annual report 'as soon as is practicable' after the end of the particular period to which the report relates. The committee draws attention to the Acts Interpretation Act 1901 which stipulates that where no date for providing a report to a minister is specified, the report should be provided no more than six months after the reporting period, and the minister must present the report to the Parliament within 15 days after the minister receives it.[20]

1.23Where a deadline for presenting an annual report cannot be met, a Commonwealth entity or company can seek an extension of time to report under the Acts Interpretation Act 1901 by advising the responsible minister of the reasons why the entity cannot comply with the deadline. The responsible minister is required to table this application and a statement specifying whether the extension was granted and the reasons for the extension in both houses of the Parliament.[21]

Timeliness of reports examined

1.24In its Annual reports (No. 1 and No. 2 of 2022) tabled on 12 August 2022, the committee noted that 25 entities tabled their annual reports prior to the commencement of supplementary budget estimates on 25 October 2021, two entities tabled their annual reports on the first day of estimates, and seven entities did not meet the recommended timeframe.

1.25Due to the introduction of a second budget by the Government in October 2022, it is appropriate to assess the timeliness of annual reports tabled between 1 May and 31 October 2022 according to whether they were tabled before the commencement of the corresponding second round of budget estimates for 2022, held in October and November. The relevant commencement date for entities under the Climate Change, Energy, the Environment and Water portfolio is 28 October 2022, and for those under the Communications and Arts portfolio it is 7 November 2022.[22]

1.26The committee notes that 35 entities tabled annual reports before the relevant budget estimates hearing commenced, and 5 entities did not meet the recommended timeframe.

1.27The following agencies tabled annual reports in the House of Representatives and/or the Senate before the committee's budget estimates hearings commenced on 28 October 2022 for Climate Change, Energy, the Environment and Water portfolio entities, and 7 November 2022 for Communications and Arts portfolio entities:

Department of Agriculture, Water and the Environment;

Department of Industry, Science, Energy and Resources;

Department of Infrastructure, Transport, Regional Development and Communications;

Australian Broadcasting Corporation;

Australian Competition and Consumer Commission and Australian Energy Regulator;

Australian Communications and Media Authority and the Office of the eSafety Commissioner;

Australia Council for the Arts;

Australian Energy Infrastructure Commissioner;

Australian Film, Television and Radio School;

Australian Institute of Marine Science;

Australian National Maritime Museum;

Australian Postal Corporation;

Australian Renewable Energy Agency;

Bureau of Meteorology;

Classification Board and Classification Review Board;

Clean Energy Finance Corporation;

Clean Energy Regulator;

Climate Change Authority;

Creative Partnerships Australia Ltd;[23]

Director of National Parks;

Great Barrier Reef Marine Park Authority;

Independent Scientific Committee on Wind Turbines;

National Archives of Australia;

National Film and Sound Archive of Australia;23

National Library of Australia;

National Museum of Australia;

National Portrait Gallery of Australia;

NBN Co Limited;

North Queensland Water Infrastructure Authority;

Museum of Australian Democracy;

Murray Darling Basin Authority;

Public Lending Right Committee;

Screen Australia;

Snowy Hydro Limited; and

Special Broadcasting Service Corporation.

1.28The following agencies did not table their annual reports in either chamber of Parliament until after the commencement of the committee's budget estimates hearings:

Bundanon Trust;

Copyright Agency;

National Gallery of Australia;

Screenrights Australia; and

Sydney Harbour Federation Trust.

1.29Appendix 1 lists the annual reports tabled (or presented) in the House of Representatives and the Senate between 1 May and 31 October 2022, which were referred to the committee, with relevant tabling dates. For the purposes of the committee's examination of timeliness, the earlier date is taken as the presentation date to the Parliament. The table also includes the dates the reports were submitted to, and received by, the relevant Minister.

Senate debate

1.30In accordance with standing orders, the committee is required to take into account any relevant remarks about annual reports made in debate in the Senate.[24] None of the annual reports examined in this report were the subject of Senate debate.

Non-reporting bodies

1.31Standing orders require that the committee report on any bodies which do not present annual reports to the Senate but should present such reports.[25] The committee notes that there are no relevant bodies which are required to present an annual report to the Senate which have not done so.

Apparently satisfactory

1.32Standing orders require that the committee report to the Senate on whether the annual reports of departments and agencies in its portfolios are 'apparently satisfactory'.[26] In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.

1.33The committee notes that the majority of agencies met the recommended timeframe for tabling annual reports prior to the commencement of the committee's second round of budget estimates hearings.

1.34The committee encourages all Commonwealth entities to follow best practice in future by tabling their annual reports prior to its estimates hearings. This will ensure that there is sufficient time for the committee to consider the content and performance information provided in annual reports prior to the commencement of its estimates hearings. Tabling annual reports on the first day of estimates or after the commencement of estimates does not provide senators with sufficient time to analyse the detail contained within annual reports to enable them effectively conduct the scrutiny and accountability processes of estimates.

1.35The committee reminds all agencies to ensure that they include a complete and accurate compliance index in their annual reports. For Commonwealth entities, this must include the table of the list of requirements as specified by the PGPA Rule and where those requirements can be found in the annual report.

1.36It is not clear to the committee why some agencies have presented their compliance indexes in a way other than that provided by the PGPA Rule. For example, the Clean Energy Finance Corporation, Australian Institute of Marine Science, and the Australia Council of the Arts did not provide page references in accordance with PGPA Rule requirements. In the Screen Australia annual report for 2021-22, references to information provided in compliance with the PGPA Rule were provided in an Appendix titled ‘Data Tables’. To assist the committee in its assessment of the compliance of annual reports, as well as other interested parties, entities are encouraged to make both the information provided in compliance with the PGPA Rule and the compliance indexes themselves easy to identify and locate in annual reports.

1.37The committee notes that some agencies had instances of incorrect or incomplete page references in their compliance indexes, in particular the Australian Broadcasting Corporation, Clean Energy Regulator, and Great Barrier Reef Marine Park Authority and Screen Australia. The committee encourages agencies to provide accurate and specific page references, which will assist with assessing compliance and improve the overall accessibility of agencies' annual reports.

1.38The committee reminds all departments and agencies to ensure all requirements are met in sufficient detail to facilitate scrutiny and accountability. The committee will be thoroughly examining future annual reports for instances of non-compliance with the requirements of the PGPA Rule.

1.39The committee has examined all annual reports referred during the reporting period and considers that they are 'apparently satisfactory'.

Footnotes

[1]Standing Orders and other orders of the Senate, October 2022, standing order 25(20)(f).

[2]Department of Finance, Resource Management Guide No. 135: Annual reports for non-corporate Commonwealth entities, January 2022; Resource Management Guide No. 136: Annual report for corporate Commonwealth entities, July 2021; and Resource Management Guide No. 137: Annual reports for Commonwealth companies, January 2022.

[3]Standing Orders and other orders of the Senate, October 2022, standing order 25(20).

[4]With the exception of the Australian Energy Infrastructure Commissioner, which reported for the 2021 calendar year.

[5]Journals of the Senate, No. 3, 4 July 2019, pp. 83–84. See also, Journals of the Senate, No. 42, 13 February 2020, pp. 1368–1369 for the allocation of agencies following the Administrative Arrangements Order made on 5 December 2019, which took effect from 1 February 2020.

[6]Journals of the Senate, No. 2, 27 July 2022, p. 73.

[7]Senate Economics Legislation Committee, Annual Reports (No. 1 of 2023).Following the revised portfolio arrangements, the entities listed below became the responsibility of the Environment and Communications Legislation Committee: Australian Energy Regulator (DCCEEW); Australian Marine Science Institute (DCCEEW); North Queensland Water Infrastructure Authority (DCCEEW); Museum of Australian Democracy (DITRDCA); and National Archives (DITRDCA). With the exception of the Australian Energy Regulator, which was examined in the Economic Committee report on annual reports, these agencies are examined in this report, and will also be examined in Environment and Communications Committee future reports.

[8]The following reports were presented/tabled after 31 October 2022 in either chamber, and will be examined in the committee’s Annual Reports (No. 2 of 2023): Screen Rights Australia, Copyright Agency, National Gallery of Australia, National Film and Sound Archive, Creative Partnerships Australia Ltd, and Sydney Harbour Federation Trust.

[9]These statutory office holders and bodies are not included in the list of entities governed by the PGPA Act, and therefore the annual reports they tabled for 2021-22 have not been assessed against PGPA Act requirements.

[10]The Wet Tropics Management Authority is a Queensland Government organisation placing it outside the committee’s remit.

[11]Bundanon Trust, Correspondence regarding extension for Bundanon Trust to table 2021-22 annual report, 20 September 2022 and 21 October 2022, (tabled 26 October 2022).

[12]Public Governance, Performance and Accountability Act 2013, section 38.

[13]Public Governance, Performance and Accountability Act 2013, section 39.

[14]Senate Hansard, 8 December 1987, pp. 2632–45.

[15]Standing Orders and other orders of the Senate, October 2022, standing order 25(20)(c).

[16]Public Governance, Performance and Accountability Act 2013, section 46.

[17]Public Governance, Performance and Accountability Act 2013, subsection 97(2).

[18]PGPA Rule, sections 17AB, 17BC and 28C. See also Department of the Prime Minister and Cabinet, Guidelines for the Presentation of Documents to the Parliament, February 2017, pp. 4–5.

[19]Department of Finance, Resource Management Guide No. 135 – Annual Report for non-corporate Commonwealth entities, February 2022; Resource Management Guide No. 136 – Annual report for corporate Commonwealth entities, February 2022. In the case of a wholly owned Commonwealth company, or a Commonwealth company that is not required to hold an annual general meeting, the PGPA Act states that 'the responsible Minister must table the documents in each House of the Parliament as soon as practicable after receiving them. In all other cases, the responsible Minister must table the documents in each House of the Parliament as soon as practicable after the annual general meeting of the company' (Public Governance, Performance and Accountability Act 2013, subsection 97(5)).

[20]Acts Interpretation Act 1901, subsections 34C(2) and 34C(3).

[21]Acts Interpretation Act 1901, subsection 34C(6). Note: Entities and companies impacted by COVID-19 were encouraged to seek an extension if they did not have the capacity to meet existing annual report deadlines

[22]Reports that will be examined in the committee’s Annual Reports (No. 2 of 2023) have also been assessed for timeliness below.

[23]Due to estimates hearings for the Communications and Arts portfolio beginning on 7 November, Creative Partnerships Australia Ltd and the National Film and Sound Archive met the standard for timeliness of tabling reports for examination at estimates, while not meeting the statutory guideline to table by 31 October.

[24]Standing Orders and other orders of the Senate, August 2018, standing order 25(20)(d).

[25]Standing Orders and other orders of the Senate, October 2022, standing order 25(20)(h).

[26]Standing Orders and other orders of the Senate, October 2022, standing order 25(20)(a).