Annual reports (No. 1 of 2005)

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Annual reports (No. 1 of 2005)

15 March 2005

© Commonwealth of Australia 2005
ISBN 0 642 71473 8

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Membership of the Committee  
 
Report on Annual Reports - Overview  
 
Departments  
    Department of Family and Community Services 2003-2004
    Department of Health and Ageing 2003-2004

 

Statutory authorities and agencies  

    Australian Institute of Family Studies 2003-2004
    Australian Institute of Health and Welfare 2003-2004
    Australian Radiation Protection and Nuclear Safety Agency 2003-2004
    Commissioner for Complaints 2003-2004
    Food Standards Australia New Zealand 2003-2004
    Gene Technology Regulator 2003-2004
    National Health and Medical Research Council 2003
    Operations of the Registered Health Benefits Organisations 2003-2004
    Private Health Insurance Administration Council 2003-2004
    Private Health Insurance Ombudsman 2003-2004
    Professional Services Review 2003-2004
    Social Security Appeals Tribunal 2003-2004

 

Government companies
 

    Aboriginal Hostels Ltd 2003-2004
    Aged Care Standards and Accreditation Agency Ltd 2003-2004
    General Practice Education & Training Ltd 2003-2004
    Medibank Private Ltd 2003-2004
    National Institute of Clinical Studies 2003-2004

 

Appendix 1 - List of Annual Reports examined  
 

Senate Community Affairs Legislation Committee Secretariat

Mr Elton Humphery – Secretary
Mr Peter Short – Senior Research Officer
Ms Leonie Peake – Research Officer

The Senate
Parliament House
Canberra ACT 2600

Phone: 02 6277 3515
Fax: 02 6277 5829
E-mail: community.affairs.sen@aph.gov.au
Internet: https://www.aph.gov.au/senate_ca

 


Membership of the committee

Senator Sue Knowles, Chairman

LP, Western Australia

Senator Brian Greig, Deputy Chair

AD, Western Australia

Senator Guy Barnett

LP, Tasmania

Senator Kay Denman

ALP, Tasmania

Senator Gary Humphries

LP, Australian Capital Territory

Senator Claire Moore

ALP, Queensland

 

Report on Annual Reports

Overview

1.1                 This report was prepared pursuant to Standing Order 25(21) relating to the consideration of annual reports by Committees. The Senate Order requires that the Committee examine the reports referred to it to determine whether they are timely and 'apparently satisfactory'. In forming its assessment the Committee has considered whether the reports comply with:

1.2                 Changes to the Administrative Arrangements Order of 16 December 2004 – following the Federal election – resulted in the transfer of a number of agencies, including Centrelink, the Health Insurance Commission, Health Services Australia and Australian Hearing to the new Department of Human Services. Reporting on the annual reports of these agencies is now the responsibility of the Finance and Public Administration Legislation Committee. As a result of changes in the Aboriginal Affairs portfolio, as of 1 July 2004, Aboriginal Hostels Ltd became part of the Family and Community Services portfolio and this Committee therefore assumed responsibility for reporting on this annual report.

Timeliness of reports

1.3                 Annual reports are generally required to be tabled on or before 31 October in the year in which the report is given, except where an agency is subject to legislation that provides a reporting timeframe for its annual report such as 'as soon as practicable' after 30 June in each year. Due to the circumstances of the Federal election, advice from the Clerk of the Senate indicated that annual reports presented out of session before the end of the first sitting period of the new Parliament – that is prior to 16 November 2004 – should be deemed to have been presented on time.

1.4                 Most of the annual reports referred to the Committee were tabled within the required time period except the report of the Department of Health and Ageing. The annual report of the Pharmaceutical Benefits Pricing Authority has yet to be tabled. While technically meeting their reporting requirements, a number of annual reports were tabled in early 2005, some time after the end of the relevant reporting period (see Appendix 1).

1.5                 The Committee notes that the annual report of the Department of Health and Ageing was not tabled until February 2005. The Department explained that that the delay in tabling was due to 'logistical difficulty' with the printing of the report.[1] The Committee reminds Departments and agencies that annual reports form an important part of the accountability process of government agencies to the Parliament and therefore need to be tabled within the specified period.

General comments

1.6                 As noted above, in accordance with Standing Order 25(21)(a) the Committee is required to report to the Senate on whether the annual reports referred to it are 'apparently satisfactory'. The Committee is pleased to note that generally the annual reports examined adhere to the relevant reporting guidelines in a satisfactory manner and have maintained high standards of presentation. However, some reports need to provide more transparent performance reporting rather than providing a description of   'activities'.

Comments made in the Senate

1.7                 The Committee is obliged, under Senate Standing Order 25(21)(d) to consider any remarks made about these reports in the Senate. Where comments have been made they are referred to in the section below on the evaluation of individual reports.

Bodies not presenting annual reports to the Senate

1.8                 The Committee is required to report to the Senate on whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

1.9                 The Committee considers that there are no bodies within its portfolio areas which do not meet their reporting requirements to the Senate in this regard.

 

Departments

Department of Family and Community Services 2003-2004

Timeliness

1.10             The report was presented to the President on 28 October 2004 and tabled in the Senate on 16 November 2004 and in the House of Representatives on 17 November 2004, within the required 15 sitting days.

Quality

1.11             The annual report provides a comprehensive review of the department's operations, including detailed performance reports. The report is well structured and 'reader-friendly' with the sections of the report on performance reporting generally providing a useful analytical assessment of the extent to which the department is meeting its outcomes.

Reporting requirements

1.12             All reporting requirements are met.

Performance reporting

1.13             The report is divided into two volumes. Volume 1 provides an overview of departmental operations, highlighting important activities, policies and programs, while volume 2 provides more detail of departmental outcomes, including performance, management and accountability details.

1.14             Performance information is reported against the performance indicators published in the 2003-04 Portfolio Budget Statements. This reporting is complemented by other relevant reporting, including the results of evaluation. The performance reporting section of the annual report encompasses the department's three outcomes relating to families, communities and individuals; and ten output groups (volume 2, pp.3-4).

1.15             As noted above, volume 1 of the report gives a broad picture of the achievements, challenges and highlights of the department's program implementation. As in the Department's last report, this volume largely concentrates on 'achievements' and future reports should attempt a more balanced approach.

1.16             A more balanced approach to performance reporting is presented in volume 2 of the report. The information on outcomes includes a discussion of achievements and also where further work by the department is required. For example, in Outcome 1 relating to families while several key 'achievements' are highlighted there is also extensive discussion of where further work is required to achieve outcomes (volume 2, pp.10-12). This format is repeated for each outcome and also for each output group. Such an approach provides a useful summary of departmental activities and an indication of the need for further measures to address particular issues.

External scrutiny

1.17             The report provides useful information on the external scrutiny of its activities by a range of agencies, including the Australian National Audit Office (ANAO), the  Privacy Commissioner and the Commonwealth Ombudsman (volume 2, pp.245-53). The report noted that few complaints were received about the department by the Privacy Commissioner or the Ombudsman (volume 2, pp.246-47).

1.18             In relation to ANAO audits conducted in 2003-04, the department indicates that it was the subject of ten such reviews during the reporting period. One audit examined the department's management of internet portals; and nine were cross-agency audits. A summary of these audit reports is provided in the annual report and the department’s actions in response to the recommendations is also discussed (volume 2, pp.249-53).

Consultancies

1.19             The report provides details of consultancy services, including the cost of individual consultancies and the reason for engaging the consultancies (volume 2, pp.315-27). The report shows that during the 2003-04 financial year, expenditure on  consultancy services (where the amount paid was $10,000 or greater) amounted to $15.2 million for the portfolio as a whole, compared with $16.8 million in the previous year (p.327).

Department of Health and Ageing 2003-2004

Timeliness

1.20             The annual report was tabled late – the report was presented to the President on 4 February 2005 and tabled in both houses of Parliament on 8 February 2005.

Quality

1.21             The annual report provides a well structured and comprehensive overview of the department’s outcomes and activities. The outcome performance reports provide useful information on departmental activities and departmental outcomes are reported against specific performance measures. The report is 'user-friendly' and provides information in a clear, concise and well-presented manner.

Reporting requirements

1.22             All reporting requirements are met, except, as noted above, the report was tabled late. The report was referred to in the Senate Estimates in relation to its late tabling.[2]

Performance reporting

1.23             The report provides details of the department’s activities during the 2003-04 financial year against the performance indicators presented in the 2003-04 Portfolio Budget Statements and Portfolio Additional Estimates Statements.

1.24             Information in the report is provided in an overview section – which provides an explanation of the department’s activities and broad strategic directions and priorities – and outcome performance reports – which discuss the main activities, including major achievements and challenges. Information is also provided on management and accountability and financial matters.

1.25             The Secretary’s review discusses a number of policy challenges and achievements over the reporting period, although, as in previous reports, the review tends to concentrate on 'achievements' and less so on 'challenges'. The report notes that the challenge remains to 'deliver improvements in our overall level of public health and to continue to support sustainable private and public sectors' (p.6). The Chief Medical Officer's report provides an insight into some of the challenges the department faces from a medical perspective (pp.8-14).

1.26             As discussed above, the report also contains detailed performance information in the form of outcome performance reports which discuss the major achievements and challenges of the nine outcomes within the department. These sections of the report provide a more balanced overview of departmental activities and discuss both 'achievements' and 'challenges' in some detail.

External scrutiny

1.27             The report provides useful information on the external scrutiny of its activities by several bodies including the ANAO, the Commonwealth Ombudsman and the Parliament (pp.36-40). Departmental responses to issues raised in relation to Audit reports and the Commonwealth Ombudsman are discussed in the report.

Consultancies

1.28             The report provides detailed information on consultancies, including details of the amounts paid and the reason for engaging individual consultancies (pp.462-82). The report states that the department engaged 595 consultants during 2003-04. Expenditure on consultancies in 2003-04 was $39 million - an increase over the previous year’s expenditure of $29 million (p.462).

Statutory Authorities and Agencies

Australian Institute of Family Studies 2003-2004

1.29             All reporting requirements are met. The report provides a detailed overview of the Institute’s activities and programs.

1.30              The report provides information on the Institute's 'effectiveness' across three program areas by a number of criteria including feedback and more formalised accounting measures related to budget and financial outcomes. The Institute's performance measures are outlined in the Strategic Plan 2002-2005 which are included in the report. The report noted that the Institute achieved outcomes 'which can be measured very favourably against all these indicators' (p.2).

1.31             The report provides a useful 'summary of research performance' undertaken by the Institute. This provides information in terms of performance outcomes and indicates that most of the planned outputs have been achieved or are ongoing (see pp.66-85).

Australian Institute of Health and Welfare 2003-2004

1.32             All reporting requirements are met. The report provides a useful review of the Institute’s functions and activities.

1.33             The report notes that that Institute produced its largest number of published reports to date on a wide range of topics related to health and welfare issues (p.vii). The Committee is pleased to note that the Institute's performance reporting continues to place a greater emphasis on measuring performance against outcomes and goals. The report also identifies where the Institute did not meet its work program goals, and outlines the reasons why the outcomes were not achieved (p.34).

Australian Radiation Protection and Nuclear Safety Agency 2003-2004

1.34             All reporting requirements are met. The annual report provides a concise account of the Agency’s functions and activities. The Agency produces quarterly reports as well as an annual report.

1.35             The report places a strong emphasis on performance reporting as was the case in previous reports. Major issues are discussed and objectives for the next financial year are outlined in the report (pp.7-14). The report noted that the Audit Office commenced a performance audit into the effectiveness of the Agency's regulatory role in managing its licence processes which will be completed in 2004-05 (p.13).

Commissioner for Complaints 2003-2004

1.36             All reporting requirements are met. The report provides a comprehensive overview of the Commissioner’s activities.

1.37             The report notes that the office continues to work towards improving the effectiveness of the Complaints Resolution Scheme and notes that legislative change was also necessary to ensure that complex complaints 'are dealt with quickly, thoroughly and effectively' (p.ii). These legislative changes, which are detailed in the report, became operational in July 2004.

1.38             The report states that the Scheme received 967 complaints in 2003-2004, which represented a 21 per cent decline compared with 2002-03 (p.27). The report noted that since the inception of the Scheme the overall volume of complaints has declined each year. This was attributed to the increased use of internal complaints mechanisms and refinements to the operation of the Scheme (p.23). The majority of the complaints related to aged residential care services. The average time taken to finalise complaints was 40.5 days in 2003-2004, compared to 40.8 days in 2002-03 (p.33).

Food Standards Australia New Zealand 2003-2004

1.39             All reporting requirements are met. The report provides a detailed overview of the operations of the agency. The report includes a number of useful charts and diagrams explaining its role and functions.

1.40             The report noted that the agency continues to work 'on strengthening our relationships with stakeholders and to build on our communication efforts' (p.10). The report provides details of its outcomes and outputs structure (pp.16-17, 131-32), and 'key result areas' although performance reporting could be improved by the inclusion of some summary table that links outputs and outcomes actually achieved. The overview sections of the report provide a balanced account of the agency's operations and identifies areas for improvement and challenges for the agency (see pp.19, 61).

Gene Technology Regulator 2003-2004

1.41             All reporting requirements are met. The GTR operates through a system of dual reporting responsibilities. The Gene Technology Act 2000 requires the GTR to provide a report to the Minister after each quarter on the operations of the Regulator during that period and the Minister must table the report in both Houses of Parliament within 15 sitting days of receipt of the report. The annual report of the GTR is incorporated within the Department of Health and Ageing’s annual report.

1.42             The quarterly reports provide a useful review of the activities of the Regulator. The reports provide information on the activities and outcomes achieved in relation to the implementation of the national regulatory system; the regulatory activities undertaken during the quarter; and the activities of the three advisory committees.

National Health and Medical Research Council 2003

1.43             All reporting requirements are met. The report provides a useful overview of  the functions and operations of the Council.

1.44             The report comments that a focus of the Council's Strategic Plan 2003-06 is to better integrate the NHMRC's major activities – 'the Plan emphasises communication and improved governance in the organisation' (p.5). The report also notes that in addition to its annual report the Council has produced a more quantitative report on its performance – the NHMRC Performance Measurement Report 2000-2003 reflecting the activities and outcomes over the three year period. In addition, the report commented on an Audit Office report, commenced in 2002, on the governance of the NHMRC noting that the ANAO made 'constructive recommendations' for improvements in a number of administrative areas (p.7).

Operations of the Registered Health Benefits Organisations 2003-2004

1.45             All reporting requirements are met. The report provides a detailed review of the financial operations of registered health benefits organisations.

1.46             The report noted that private health insurance organisations have achieved a 'welcome improvement' in their financial position in 2003-04. The report also notes improved governance and risk management practices in the industry – 'however, there remains concern over these practices in some parts of the industry' (p.1). Concern over corporate governance practices were also noted in its last report and the current report outlines a number of measures to address this issue (pp.2-3).

1.47             Another concern raised in the last report was the extent of management expenses of some funds. The present report notes that management expenses have decreased over the last year but notes that PHIAC remains focussed on the higher than average expenses of some funds and believes 'further improvement is possible over the next year' (p.2).

Private Health Insurance Administration Council 2003-2004

1.48             All reporting requirements are met. The report provides a comprehensive overview of the operations of the Council.

1.49             The report states that over the reporting period PHIAC placed considerable emphasis on corporate governance in the industry, and increased its capacity for inspection and on-the-ground monitoring. These approaches are detailed in the report (pp.3-6, 27-33). The report also outlines initiatives towards strengthening its own governance procedures noting that it commissioned an external review of the Council and its operations and has implemented the recommendations of this review (p.5).

1.50             Over the next year the report stated that PHIAC will continue to take an increasingly 'active attitude' to governance and financial management issues and will continue to improve its approach to regulation (p.6).

Private Health Insurance Ombudsman 2003-2004

1.51             All reporting requirements are met. The report provides a useful overview of the activities of the Ombudsman.

1.52             The report notes that, in a notable change in function, the Ombudsman is now required to produce an annual publication on the comparative performance and service delivery of health funds. The Ombudsman noted that this report as well as including additional analysis of complaints will also include summary information on financial measures, access to fund services and product features (p.5).

1.53             The report states that the Ombudsman received 2992 complaints in 2003-04, compared with 3568 in 2002-03 (p.18). This represents a 16 per cent reduction in complaints over the previous year. The Ombudsman noted that the reduction in total complaint numbers was due to a reduction in complaints about premium increases compared to last year – this reduction in turn was attributed by the Ombudsman to better management and implementation of the premium review process by the funds and DoHA. The office finalised 3008 complaints during the year (an average of 251 per month), compared with an average of 298 complaints finalised per month in the previous year (p.18). Further details of performance outcomes, augmented by good use of graphs and charts, are provided in the report (pp.13-25).

Professional Services Review 2003-2004

1.54             All reporting requirements are met. The report provides a concise review of the operations of the Professional Services Review (PSR).

1.55             The report notes that 2003-04 has been a period of 'steady work with a considerable amount of committee activity both in hearings and in report preparation' but as in previous years this activity was modified by responses to legal decisions in cases where the process was challenged. The report noted, however, that the results of most court and tribunal decisions in 2003-04 have been in favour of the PSR (p.2).

1.56             The report states that the PSR received 38 referrals from the HIC in 2003-04 (compared to 52 cases in 2002-03). Of cases in 2003-04, 34 were either dismissed by the Director of the PSR or agreements were negotiated with the practitioner due to insufficient grounds on which a committee could reasonably find the practitioner had engaged in inappropriate practice. Another 6 cases were sent to PSR committees for further examination (pp.20-25).

Social Security Appeals Tribunal 2003-2004

1.57             All reporting requirements are met. The report provides a useful review of the activities of the Tribunal.

1.58             The report notes that during 2003-04 the Tribunal continued to 'strengthen its operations and focus on the quality, consistency and timeliness of its decisions' (p.1). The report has a strong focus on performance reporting and makes good use of graphs and charts to illustrate a range of performance data (pp.14-32).

1.59             The report states that in 2003-04, some 9,282 applications were lodged with the Tribunal, a decrease of three per cent over the previous year. The Tribunal finalised 9,328 applications during the year, a decrease of three per cent compared with 2002-03. The average time between lodging and finalising an application was 8.6 weeks (compared to 9.3 weeks in 2002-03). The internal SSAT standard is to finalise appeals within 10 weeks of lodgment. Further details of performance outcomes are provided in the report (pp.14-32).

 

Government Companies

Aboriginal Hostels Ltd 2003-2004

1.60             All reporting requirements are met. The report notes that the company provided 3,085 beds each night in nine accommodation categories in 127 hostels (48 of which were company operated and 79 were community hostels funded by the company). The average occupancy rate for company operated hostels was 71 per cent, an increase of two percent over 2002-03. Average occupancy for community operated hostels was 73 per cent, unchanged from 2002-03 (pp.2,30). Regarding performance reporting, the company uses a 'balanced scorecard' approach in addition to other indicators to report on outcomes (p.7).

1.61             The report outlines a number of initiatives that it plans to undertake in the next financial year including improvements to internal processes, measures to increase revenue through improved partnerships and improved customer focus (pp.2-3,30).

Aged Care Standards and Accreditation Agency Ltd 2003-2004

1.62             All reporting requirements are met. The report notes that the Agency  continues to play an important role in raising the standards of care in aged care homes – 'this role is balanced with the need to ensure homes comply with the Accreditation Standards, and look at better meeting the changing needs and preferences of residents' (p.2).

1.63              Regarding performance reporting, the report provides details of accreditation and monitoring of homes. While most of the Agency contacts with services exceed the targets for 2003-04, the number of review audits were substantially less than the target figure  (86 review audits as against a target of up to 320 audits) (p.22). Some explanation should be provided in future reports when targets have not been met. While general information on the accreditation and monitoring of homes is provided, additional information on the types of concerns/issues raised during accreditation and subsequent follow up monitoring of homes should also be included in future reports.   

1.64             The report refers to a number of recent reports impacting on the Agency's operations. The report notes that the Hogan review of pricing arrangements in residential aged care recommended that the agency's role should be directed mainly to the accreditation of services and that the Agency improve its focus on supporting informed consumer choice and consumer input into monitoring standards. The Agency's response to these recommendations should be discussed in future reports. The report notes that, in response to the 2003 Audit Office report into the effectiveness of the management of the accreditation process, the Agency has substantially implemented the recommendations of that review (pp.2-5).

General Practice Education & Training Ltd 2003-2004

1.65             All reporting requirements are met. The report provides a concise account of the operations of the Company in furthering its aim of establishing a regionalised network for general practice education.

1.66             The report notes that regional training providers (RTPs) have 'moved beyond establishment issues to appreciate and take advantage of the opportunities available under the regionalised arrangements. Many RTPS are developing innovative approaches to vocational training. GPET is working with RTPs to better define the broader national policy aims of regionalised training over and above high quality vocational training, particularly regional responsiveness' (p.5).

Medibank Private Ltd 2003-2004

1.67             All reporting requirements are met. The report noted that Medibank Private has continued to build on last year's improved financial position 'making a further contribution to building a sustainable business'. It recorded a $44.8 million operating profit in 2003-04. (p.2)

1.68             With regard to performance measures, the report notes that its market share is now 29.1 per cent (30 per cent in 2002-03); 92 per cent of member contributions were returned as benefits; and member complaints were reduced by 2 per cent compared to the previous financial year (p.3). The report also provides a number of useful key performance trends relating to its operations (pp.8-9).

National Institute of Clinical Studies 2003-2004

1.69             All reporting requirements are met. The report identified a number of challenges for the Institute including the need to work with a range of health and related organisations; the importance of a wider dissemination of its work; and the need for the identification of the clinical areas in which it should focus its activities (p.3).

1.70              The report provides information on achievements against performance targets in a number of key areas, indicating the extent to which targets have been met (pp.10-15). This approach addresses a concern in the last report where the Committee identified a need to provide more of an objective assessment of the Institute’s performance rather than an emphasis only on 'achievements'.

Senator Sue Knowles
Chairman
March 2005

 

Appendix 1 – List of Annual Reports examined

Responsible Department Department/Agency
Statutory Authority
Non-Statutory body
Year Date tabled SENATE Date tabledREPS Dates submitted to/received byMinister
DFaCS Aboriginal Hostels Limited – Report 29 June 2003 to 26 July 2004   16.11.04 17.11.04 Rec 05.11.04
DoHA Aged Care Standards and Accreditation Agency Limited 2003-04 16.11.04 17.11.04 Rec 10.11.04
DFaCS Australian Institute of Family Studies 2003-04 16.11.04 17.11.04 Rec 28.10.04
DoHA Australian Institute of Health and Welfare 2003-04 08.02.05 08.02.05 Rec 17.12.04
DoHA Australian Radiation Protection and Nuclear Safety Agency 2003-04 16.11.04 17.11.04 28.10.04/01.11.04
DoHA Commissioner for Complaints [Aged care] 2003-04 16.11.04 17.11.04 Rec 10.11.04
DFaCS Department of Family and Community Services – Vols 1 & 2 2003-04 16.11.04 17.11.04 Rec 28.10.04
DoHA Department of Health and Ageing 2003-04 08.02.05 08.02.05 Rec 04.02.05
DoHA Food Standards Australia New Zealand 2003-04 16.11.04 17.11.04 Rec 01.11.04
DoHA General Practice Education and Training 2003-04 08.02.05 08.02.05 03.01.05/19.01.05
DoHA Gene Technology Regulator
Quarterly report for the period 1 July to 30 September 2003
Quarterly report for the period 1 Oct to 31 Dec 03
Quarterly report for the period 1 Jan to 31 Mar 04
Quarterly report for the period 1 Apr to 30 June 04
  10.02.04
11.05.04
08.02.05
08.02.05
10.02.04
11.05.04
09.12.04
08.02.05
Pres to Pres 05.02.04
Rec 6.05.04
29.11.04/29.11.04
29.11.04/29.11.04
DoHA Medibank Private Limited 2003-04 16.11.04 17.11.04 Rec 16.09.04
DoHA National Health and Medical Research Council 2003 22.06.04 22.06.04 02.05.04/02.05.04
DoHA National Institute of Clinical Studies Limited 2003-04 08.03.05 15.02.05 08.12.04/10.12.04
DoHA Private Health Insurance Administration Council
Private Health Insurance Administration Council  - Operations of the registered health benefits organisations
2003-04
2003-04
08.02.05
08.02.05
08.02.05
08.02.05
Rec 14.12.04
Rec 14.12.04
DoHA Private Health Insurance Ombudsman 2003-04 08.02.05 08.02.05 Rec 21.12.04
DoHA Professional Services Review 2003-04 30.11.04 18.11.04 10.11.04/10.11.04
DFaCS Social Security Appeals Tribunal 2003-04 16.11.04 17.11.04 Rec 05.11.04