Report on annual reports


Report on annual reports

Overview

1.1        This report was prepared pursuant to Standing Order 25(20) 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:

  • the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies approved by the Joint Committee of Public Accounts and Audit under subsections 63(2) and 70(2) of the Public Service Act 1999, Department of the Prime Minister and Cabinet, June 2006
  • for Commonwealth authorities and companies, the Commonwealth Authorities and Companies Act 1997.

A list of reports examined for report by the Committee is at Appendix 1.

Timeliness of reports

1.2        Most of the annual reports referred to the Committee were tabled within the specified period or shortly thereafter.

General comments

1.3        The Committee is pleased to note that generally the annual reports examined adhere to the relevant reporting guidelines in a satisfactory manner. The reports continue to maintain high standards of presentation and provide a comprehensive range of information on their functions and activities.

Comments made in the Senate

1.4        The Committee is obliged, under Senate Standing Order 25(20)(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

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

 

Departments

Department of Families, Community Services and Indigenous Affairs 2005-2006

Timeliness

1.6        The report was tabled in the House of Representatives on 31 October 2006 and in the Senate on 8 November 2006.

Quality

1.7        The annual report provides a well-structured and comprehensive review of the Department of Families, Community Services and Indigenous Affairs (FaCSIA) functions and operations, including detailed performance reporting. Part 1 of the report contains the Secretary's review of FaCSIA's major achievements, activities and financial performance (pp.2-38). Part 2 of the report relating to performance reporting provides a detailed analytical assessment of the extent to which the Department is meeting its outcomes  Key achievements against the output groups are outlined, as well as details of further work required to be undertaken for further achievement of outcomes (pp.40-269).

Reporting requirements

1.8        All reporting requirements are met.

Performance reporting

1.9        Performance information is reported against the performance indicators published in the 2005-06 Portfolio Budget Statements and modified in the 2005-06 FaCSIA Portfolio Additional Estimates Statements by the addition of Outcome 6: Innovative whole-of-government policy on Indigenous Affairs. This change was a result of the Administrative Arrangements Orders issued on 27 January 2006 which merged the Office of Indigenous Policy Coordination and the Department of Family and Community Services to form the Department of Families, Community Services and Indigenous Affairs.

1.10      The performance reporting in Part 2 of the report is very comprehensive and clearly set out. Detailed information is provided against the FaCSIA's six outcomes and 14 output groups, including strategies, outputs and comprehensive summaries of performance. Tables and graphs are also included (pp.39-269).

1.11      Management and accountability matters, and appendices containing a number of tables outlining statistical information and financial statements are provided in Parts 3, 4 and 5 of the report (pp.271-521).

External scrutiny

1.12      The report provides useful information on the external scrutiny of the Department's activities by a range of agencies, including the Privacy Commissioner, Commonwealth Ombudsman and the Australian National Audit Office (ANAO). The report notes that no complaints about the Department were received by the Privacy Commissioner in the year in review. The Ombudsman received 32 complaints in 2005-06 compared to 26 complaints received in 2004-05. During 2004-05, 34 complaints were finalised and of that total 10 were investigated (pp.292-300). The Commonwealth Ombudsman's report stated that, in relation to FaCSIA, the Ombudsman paid particular attention to the $600 one-off payment for families; the marriage-like relationship policy; and the extension of advance payments.[1]

1.13      In relation to ANAO audits conducted in 2005-06 the Department reports that 15 audit reports were relevant to its operations. Four of the ANAO audits were agency audits where FaCSIA was a key stakeholder and 11 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 are also discussed (pp.293-300). FaCSIA's response to ANAO audit reports Nos 46 and 47 of 2005-06 were debated in the Senate.[2]

Consultancies

1.14      The report provides details of consultancy services, including the contract price of new consultancies of $10 000 or more and the purpose for which these were let (pp.344-58). A summary of new and ongoing consultancy services contracts is provided at pp.279-80. The report shows that during the 2005-06 financial year total expenditure on new and ongoing consultancy contracts amounted to $39.7 million compared with $21.1 million in the previous year (p.280).

1.15      FaCSIA reports that during 2005-06, 167 new consultancy contracts were agreed involving total actual expenditure of $12.5 million. In addition, 70 ongoing consultancy contracts were active during the year involving total actual expenditure of $27.2 million (p.279). The Department's 2004-05 report advises of 192 new consultancy contracts involving a total actual expenditure of $13.6 million, and 68 ongoing consultancy contracts being active involving total actual expenditure of $7.5 million.[3] These figures explain the large difference in expenditure on consultancy contracts between the 2004-05 and 2005-06 financial years.

Department of Health and Ageing 2005-2006

Timeliness

1.16      The report was received by the President of the Senate out of session on 26 October 2006 and tabled in the House of Representatives on 26 October 2006.

Quality

1.17      The annual report provides a well structured and comprehensive overview of the Department of Health and Ageing (DoHA) outcomes and activities. The outcome performance reports provide detailed information on Departmental activities. Outcomes and achievements are reported against specific performance measures for 12 Department-specific Outcome groups (pp. 30-171).

1.18      The Secretary's review discusses a number of policy challenges and key achievements during the 2005-06 financial year (pp.2-7). The Chief Medical Officer's report outlines, from a medical perspective, the measures taken by the Department in being prepared for health emergencies such as an influenza pandemic. National initiatives have been developed to improve areas of health concern such as obesity, chronic disease, mental illness, Indigenous health and health workforce shortages (pp.8-13).

Reporting requirements

1.19      All reporting requirements are met.

Performance reporting

1.20      The report provides details of the DoHA's activities during the 2005-06 financial year against the performance indicators presented in the 2005-06 Portfolio Budget Statements and Portfolio Additional Estimates Statements.

1.21      Part 1 of the report contains a Departmental overview with an explanation of the DoHA's activities and broad strategic directions and priorities. Key issues and achievements are also discussed (pp. 2-28). Outcome performance reports in Part 2 of the report discuss the main activities, including the major achievements and challenges of the 12 outcomes performance targets for administered items. Departmental output groups are reported against specific outcomes. Financial resource summary tables providing a summary of Budget estimates and actual expenses are also included (pp.30-171). Parts 3 and 4 of the report contain the financial statements and a range of statistical and other information (pp.226-417).

External scrutiny

1.22      The report sets out information on the external scrutiny of its activities by several bodies including the ANAO, Administrative Appeals Tribunal, and the Commonwealth Ombudsman. Departmental responses to issues raised in relation to Audit reports are also discussed in the report (pp.24-28).

1.23      During 2005-06 the Commonwealth Ombudsman investigated 22 complaints against the DoHA's administrative practices. In comparison to 2004-05 the number of complaints lodged with the Ombudsman that went to the investigation stage decreased by 39 per cent. The investigations conducted by the Commonwealth Ombudsman, and finalised during 2005-06, did not result in any adverse findings for the Department (p.28).

Consultancies

1.24      The report provides detailed information on consultancy services let in 2005‑06 of $10 000 or more (pp.307-332). Expenditure on all consultancies let during 2005-06 totalled $17.84 million. In addition, 153 ongoing consultancy contracts were active during the 2005‑06 year, costing $15.61 million. Total expenditure on consultancies for 2005-06 was $33.45 million – a similar figure to the 2004-05 figure of $33.3 million (pp.307, 332, 369).

 

Statutory authorities and agencies

Anindilyakwa Land Council 2005-06

1.25      All reporting requirements are met. The report provides a comprehensive review of the Anindilyakwa Land Council's (ALC) functions and activities.

1.26      The ALC reports that the year in review was one of the most active in the history of the Council, with land use consultations, the declaration of an Indigenous Protected Area and economic development being prominent (p.7).

1.27      The ALC's objectives, strategies and actions and key performance indicators relating to their various output groups are detailed in the report (pp.27-35).

Australian Institute of Family Studies 2005-2006

1.28      All reporting requirements are met. The report provides a comprehensive account of the Institute's activities and programs.

1.29      The report states the Institute consulted extensively regarding their research program, with feedback taken into consideration in the preparation of the Strategic Plan 2006-2008  and Research Plan 2006-2008 (p.3).

1.30      The report provides detailed information on the Institute's four major themes of research: family relationships; children, youth and patterns of care; families and work; and families and community life (pp.17-68). Also provided in the report is a clearly set out tabular form summary of research project performance across the Institute's research programs. This summary provides information in terms of performance outcomes and indicates that most of the planned outputs have been achieved or are ongoing (pp.70-89).

Australian Institute of Health and Welfare 2005-2006

1.31      All reporting requirements are met. The report provides a detailed overview of the Australian Institute of Health and Welfare's (AIHW) functions and activities.

1.32      The report also provides a comprehensive account of the AIHW's performance against performance measures in each of the three output groups (pp.19-60).

1.33      The report notes that in the year in review the AIHW produced 130 publications and conducted three national conferences. These achievements attracted wide media coverage. The AIHW reports that over 60 percent of the work was funded by external business arrangements for specific projects (pp.x-xi).

Australian Radiation Protection and Nuclear Safety Agency 2005-2006

1.34      All reporting requirements are met. The annual report provides a comprehensive review of the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) functions and activities. ARPANSA produces quarterly reports as well as an annual report.

1.35      The annual report sets out in detail the principal outcomes achieved, as well as a review of achievements in the areas nominated in the previous annual report. Planned objectives for the next financial year are also outlined (pp.8-16).

1.36      The report includes a section on ARPANSA's performance with achievements detailed against outputs (pp.24-49).

1.37      The report states that ARPANSA has established a performance and accountability system for the internal management of performance that also meets external reporting requirements (p.24).

Central Land Council 2005-06

1.38      All reporting requirements are met. The Central Land Council (CLC) is a representative organisation for the Aboriginal traditional landowners in its region which provides a number of services for the benefit of traditional landowners and other Aboriginal residents of the CLC region (p.12).

1.39      The report notes that the CLC's work of encouraging and supporting sustainable Aboriginal enterprises has expanded considerably. Land management programs have made important progress and a number of management plans have been drafted (p.2).

1.40      The report provides a comprehensive account of the CLC's performance and achievements against the six output groups (15-69).

Food Standards Australia New Zealand 2005-2006

1.41             All reporting requirements are met. The report provides a comprehensive review of the operations of FSANZ (see pp.11-101). FSANZ activities were summarised in the report against performance outputs (pp.22-24).

1.42      The report states that FSANZ considers that its greatest contribution to accountability is 'probably the transparency of our decision making, the openness and inclusiveness of our processes, and the independence of our advice. These approaches complement and enhance our formal reporting systems. They are major drivers of our business' (p.20).

1.43      Accountability and performance reporting was also provided in some detail (pp.90-101).

1.44      The report states that in the year in review FSANZ sought to strengthen its governance and reporting arrangements. In the 2006-07 financial year FSANZ will seek to align the various planning elements of the agency more closely, both to each other and to their reporting obligations (p.91).

Indigenous Land Corporation 2005-06

1.45      All reporting requirements are met. The report provides a detailed account of the Indigenous Land Corporation's (ILC) functions and activities.

1.46      The report notes that in the 2005-06 financial year the ILC had built strongly on a commitment to strengthen the involvement in training and employment provision for Indigenous people (p.2).

1.47      The performance overview section of the report outlines the ILC's operations and outcomes (pp.28-70). Also included in the report is a summary of financial results (pp.99-102).

National Blood Authority 2005-06

1.48      The National Blood Authority's (NBA) annual report was presented to the President of the Senate on 12 December 2006, later than the required date of 31 October, however the Committee notes the letter of transmittal was dated 6 October 2006.

1.49      The report clearly sets out information on the NBA's operations and achievements. Part four of the report provides a detailed account of the Authority's performance and outcomes, including a number of tables and graphs (pp.27-76).

1.50      The report further notes that in 2005-06 the primary function of meeting current blood supply needs was fully met, and the process for developing the National Supply Plan and Budget for 2006-07 was further improved (p.4).

National Health and Medical Research Council 2005

1.51      All reporting requirements are met. The report provides a comprehensive overview of the functions and operations of the National Health and Medical Research Council (NHMRC).

1.52      From 1 July 2006 the NHMRC became a fully independent statutory agency. The report notes that this change would enhance the NHMRC's ability to respond to emerging health and research priorities and to strengthen health policy and practice as a consequence (p.12).

1.53      The report includes detailed information on the NHMRC's activities associated with improving health outcomes in the major disease areas, national research priorities, and strategic initiatives. The NHMRC's working relationships with international bodies are also discussed, as well as matters relating to governance, administration, regulation and reviews (pp.22-67).

Northern Land Council 2005-06

1.54      All reporting requirements are met. The Northern Land Council (NLC) is responsible for assisting Aboriginal people in the northern region of the Northern Territory to acquire and manage their traditional lands and seas.

1.55      The NLC reports that it succeeded in improving performance in key output areas, such as land management and land trust administration (p.4). The report also states that the NLC's innovative programs in employment and training, and land management achieved impressive results for the year in review. The NLC secured over 400 jobs for local Aboriginal people and completed 71 land use agreements (p.2).

1.56      Included in the report is a performance summary, overview of financial management, and section covering accountability and governance (pp.22-26, 112-122). A detailed Aboriginals benefit account report and Native Title report are also included (pp.28-110).

Private Health Insurance Administration Council 2005-2006

1.57             All reporting requirements are met. The report provides an overview of the operations of the Private Health Insurance Administration Council (PHIAC). Performance information is reported against PHIAC's two output groups (pp.29-40).

1.58      The report states that PHIAC's fund review program covered 90 per cent of the registered health funds. A further round of fund reviews was being planned. PHIAC considers that the review program had been of benefit to both PHIAC and the industry (p.3).

1.59      Over the next year PHIAC'S principal focus will be on finalising corporate governance guidelines, implementing proposed legislation changes, implementing the new risk equalisation scheme and reviewing financial standards (p.5).

Private Health Insurance Ombudsman 2005-2006

1.60      All reporting requirements are met. In the report the Private Health Insurance Ombudsman (PHIO) has provided a clearly set out and informative overview of his role and activities (pp.5-10).

1.61      The report notes that 2005-06 was the third consecutive year in which the number of complaints about health funds had reduced significantly. Detailed analysis of the PHIO complaint data suggested that improvements in some aspects of health fund performance contributed to fewer complaints. However, in contrast to the significant decline in total complaints received, there had been a significant increase in the number and proportion of complaints which required more detailed investigation (pp.5-6)

1.62      Details of PHIO's performance, including a summary of performance outcomes against performance indicators is provided in the report at pp. 11-22.

Professional Services Review 2005-2006

1.63      All reporting requirements are met. The report provides a useful overview of the operations of the Professional Services Review (PSR).

1.64      Performance measures and outcomes are discussed in the report in detail. The report states that in 2005-06 Medicare Australia sent seven requests for review to the PSR. These cases took an average of 208 days to complete, compared to 313 days the previous year (pp.13-14). Detailed information relating to requests for review, referrals to committees and determinations is also provided in the report at pp.14-61.

Tiwi Land Council 2005-2006

1.65      All reporting requirements are met. The report outlines the objectives and outcomes of the Tiwi Land Council (TLC), particularly with regard to land use and community development matters (pp.7-11).

1.66      The Tiwi Land Council has reported performance against an outcome/output framework. The report notes that the Council's funding has shifted from a basis of 'entitlement' to performance driven achievement. Their annual funding will be reliant upon outcomes achieved and the relative costs of achieving them. The TLC has welcomed these changes and reports that budgeting and reporting against performance driven outcomes will further assist their focus (pp.17-36).

1.67      Details are provided in the report on the Management Committee. A useful addition would be the inclusion of the office contact details.

1.68      Representatives of the TLC appeared before the Committee for the first time at a Senate estimates hearing in November 2006. Discussions focussed primarily on industries and employment and training opportunities on the Tiwi Islands, as well as land use, forestry and timber matters. A number of questions also made reference to these matters in relation to the TLC's annual report.[4]

Torres Strait Regional Authority 2005-2006

1.69      The letter of transmittal to the Minister was dated 23 November 2006 and the report received by the President of the Senate on 15 January 2007. The report provides a detailed account of the functions and operations of the Torres Strait Regional Authority (TSRA), including information about the Torres Strait region (pp.30-39).

1.70      The report states that economic development is a high priority and the TSRA has continued to focus on increasing economic development initiatives with the aim of long-term economic and financial sustainability for their communities. The TSRA has achieved this through encouraging and providing support to local Island councils and by negotiating partnerships with a variety of government agencies to establish community-based business initiatives for the benefit of Torres Strait Islanders (p.2).

1.71      The report provides detailed performance information against the six output groups. Planned and actual achievements are listed in table format, together with well structured and detailed information relating to programs and sub-programs under the six outputs (pp.44-84).

Commonwealth companies

Aboriginal Hostels Ltd 2005-2006

1.72      All reporting requirements are met. The report provides detailed summaries of the eight regions in which Aboriginal Hostels Ltd (AHL) provides accommodation and assistance.

1.73      AHL are pleased to report that their annual resident survey showed that 98 per cent of residents expressed satisfaction with the standard of accommodation and services provided (p.17).

1.74      The report states that occupancy rates for company-operated hostels remained at a high 74 per cent, with community-operated hostels increasing slightly to 74 per cent. All regions focused on maintaining and improving occupancy rates during the year and will continue in 2006-07 (p.19).

1.75      The report also states there had been a particular focus on young Indigenous apprentices and trainees, through such innovative programs as the Indigenous Youth Mobility program, thereby enhancing the lives of young Indigenous people (p.16).

1.76      AHL continues to be one of the largest employers of Aboriginal and Torres Strait Islander people in Australia. Out of a total of 492 staff 82 per cent were Indigenous peoples (p.1).

1.77      A new Corporate Plan was introduced by AHL early in 2006 which sets out the company's goals, strategies, targets and performance indicators for 2006-08, around which work plans and programs will be formulated and carried out (p.25).

1.78      AHL operations are set out in table format in the balanced scorecard performance summary which details strategies, targets and outcomes across 10 focus areas (pp.31-33).

The Aged Care Standards and Accreditation Agency Ltd 2005-2006

1.79      All reporting requirements are met. The Agency's performance indicators, targets and outcomes are detailed in table format at pp.34-38.

1.80      The report states that around 28 per cent, or 914, of the Agency's support contacts and review audits were conducted as unannounced visits during the reporting period. The Agency is planning a program of monitoring for 2006-07 so that all homes will receive at least one unannounced visit per year (pp.16-17). 96.1 per cent of homes met all 44 expected outcomes at the end of the reporting period (p.34).

General Practice Education and Training Ltd 2005-2006

1.81      All reporting requirements are met. The report details the operations of General Practice Education and Training (GPET) in furthering its role of establishing, monitoring and evaluating a national system of regionalised general practice education and vocational training.

1.82      The report states that the number of registrars engaged in Enhanced Rural Training (ERT) more than doubled between the end of 2005 and June 2006. 36 per cent of all Australian General Practice Training registrars were participating in ERT, with 70 per cent of these in the rural pathway (p.7).

1.83      In 2005 GPET funded a further component of the Framework for General Practice Training in Aboriginal and Torres Strait Islander Health by establishing support positions in the State-based Aboriginal Community Controlled Health Organisations to work with regional training providers and health services to assist in recruiting and supporting Aboriginal health training posts (p.7).

Medibank Private Ltd 2005-2006

1.84      All reporting requirements are met. The report states that Medibank Private achieved a profit result of $200.1 million – a 53 per cent increase on the previous year. The result was partially attributable to the fund's efforts in benefit cost management (p.6).

1.85      The report also states that a significant contribution to Medibank Private's profit result was due to strong performance in membership growth. The highest membership growth in four years was achieved, which was a 34 per cent increase on the 2004-05 figures (p.14). Key performance indicators are provided in the report at pp.2-3.

National Institute of Clinical Studies 2005-2006

1.86      All reporting requirements are met. The National Institute of Clinical Studies (NICS) reports that the second three year strategic plan had been adopted, the overall strategic focus of which is to close gaps in clinical care. Over 70 per cent of all major Australian public hospitals had actively participated in NICS' clinical programs (pp.5-6).

1.87      The report also notes that NICS was successful in attracting additional revenue, including through agreements with carefully targeted organisations, which had enabled additional projects to be undertaken (p.11).

1.88      NICS clearly sets out performance relating to the outcome of programs, indicating the areas of success and also identifying areas for improvement (pp.26-29).

 

Senator Gary Humphries
Chairman

March 2007

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