Report on Annual reports (No. 1 of 2008)


Report on Annual reports (No. 1 of 2008)

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 2007
  • 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 any 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 2006-2007

Timeliness

1.6        The report was received by the President of the Senate out of session on 2 November 2007, tabled in the Senate on 12 February 2008 and in the House of Representatives on 13 February 2008.

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.

1.8        FaCSIA advises in the report they have focused on reporting against the indicators that are stated at output level in their Portfolio Budget Statements (PBS). FaCSIA has also endeavoured to reduce narrative repetition as well as consolidating financial and staffing resource information into performance output tables. Where there is variance between the estimate and actual results of performance indicators FaCSIA has included both, and where possible described why a variance has occurred to illustrate a clear link between their PBS and annual report (p.36).

1.9        FaCSIA also states that in future years their further program and reporting simplification will ensure increased transparency and enable clear links to be seen between the performance targets set in the PBS and the Department's outcomes and achievements (p.36).

1.10      Part 1 of the report contains the Secretary's review of FaCSIA's major achievements, activities and financial performance. A portfolio and departmental overview is also included (pp.2-34). Performance reporting in Part 2 of the report provides a detailed analytical assessment of the extent to which the Department is meeting its outcomes. Major achievements contributing to the outcomes, the challenges faced, and key strategic directions are summarised. Case studies are also included to highlight the progress achieved in particular areas (pp.35-241).

Reporting requirements

1.11      All reporting requirements are met.

Performance reporting

1.12      Performance information is reported against the performance indicators published in the 2006-07 Portfolio Budget Statements and Portfolio Additional Estimates Statements.

1.13      The performance reporting in Part 2 of the report is comprehensive and clearly set out. Detailed information is provided against FaCSIA's four outcomes and related output groups, including major achievements, strategies, outputs and comprehensive summaries of performance. Performance output tables of financial and staffing resource information and graphs are provided. Details of additional work required to be undertaken for further achievement of outcomes has also been included. Where a variance has occurred between the estimate and actual results of performance indicators, FaCSIA has included both, and described where possible why a variance has occurred (pp.35-241).

1.14      Management and accountability matters, appendices containing a number of tables outlining statistical information and financial statements are provided in Parts 3, 4 and 5 of the report (pp.244-502).

External scrutiny

1.15      The report provides useful information on the external scrutiny of FaCSIA's activities by a range of agencies, including the Privacy Commissioner, Commonwealth Ombudsman and the Australian National Audit Office (ANAO). The report notes that one complaint about the Department was received by the Privacy Commissioner in the year in review. The Ombudsman received 43 complaints in 2006-07 which was an increase on the 11 complaints received in 2005-06. During 2006-07, 47 complaints were finalised, four of which were received in prior financial years. Of the 11 complaints investigated, three complaints of defective administration were found against FaCSIA (pp.276-277).

1.16      In relation to ANAO audits conducted in 2006-07 the Department reports that nine audit reports were relevant to its operations. Two of the ANAO audits were agency audits where FaCSIA was a key stakeholder and six were cross-agency audits, and one called for FaCSIA's comments. 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.277-281).

Consultancies

1.17      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.324-344). A summary of new and ongoing consultancy services contracts is provided at pp.259-260. The report shows that during the 2006-07 financial year total expenditure on new and ongoing consultancy contracts amounted to $29.6 million compared with $39.7 million in the previous year (p.260).

1.18      FaCSIA reports that during 2006-07, 248 new consultancy contracts were agreed involving total actual expenditure of $12.2 million. In addition, 64 ongoing consultancy contracts were active during the year involving total actual expenditure of $17.4 million (p.260).

Department of Health and Ageing 2006-2007

Timeliness

1.19      The report was received by the President of the Senate out of session on 29 October 2007 and tabled in the Senate on 12 February 2008 and the House of Representatives on 13 February 2008.

Quality

1.20      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 15 Department-specific Outcome groups (pp.28-192). The functions and key achievements of the Portfolio agencies are clearly set out in table format (pp.206-212).

1.21      The Secretary's review outlines the Department's major challenges, progress, successes and highlights of the 2006-07 financial year. Key objectives and priorities for the following reporting year were also outlined (pp.2-8). 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. Action taken to improve Indigenous health and the problems associated with lifestyle diseases such as obesity and diabetes were also outlined, as well as future challenges (pp.9-14).

Reporting requirements

1.22      All reporting requirements are met.

Performance reporting

1.23      The report provides details of DoHA's activities during the 2006-07 financial year against the performance indicators presented in the 2006-07 Portfolio Budget Statements and Portfolio Additional Estimates Statements.

1.24      Part 1 of the report contains a Departmental overview with an explanation of DoHA's activities and broad strategic directions and priorities. Key issues and achievements are also discussed (pp.2-22). Outcome performance reports in Part 2 of the report discuss the main activities, including the major achievements, strategic directions and challenges of the 15 outcomes. Performance indicators and outcomes for administered items and departmental outputs are clearly set out in tabular format (pp.24-192) Management arrangements, including corporate governance in the Department and portfolio agencies, including agencies functions and key achievements are outlined in Part 3 of the report (pp.194-212).

1.25      Accountability reporting covering advertising and market research; the Commonwealth Disability Strategy; consultancy services; discretionary grant programs; ecologically sustainable development; freedom of information; occupational health and safety; and staffing information is provided in Part 4 of DoHA's annual report. In previous years this information was included as appendices (pp.214-272). Part 5 of the report contains the Department's financial statements, including a departmental and administered financial performance summary and the financial statements relating to the Therapeutic Goods Administration (pp.274-392).

External scrutiny

1.26      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.200-201).

1.27      During 2006-07 the Commonwealth Ombudsman investigated 25 complaints against DoHA's administrative practices. This represents a 14 per cent increase of complaints investigated by the Ombudsman in 2005-06. The investigations conducted by the Commonwealth Ombudsman, and finalised during 2006-07, did not result in any adverse findings for the Department (p.201).

Consultancies

1.28      The report provides detailed information on consultancy services let in 2006-07 of $10 000 or more (pp.230-247). 485 new consultancy contracts were entered into involving total actual expenditure of $19.4 million. In addition, 182 ongoing consultancy contracts were active during the 2006-07 year, costing $15.65 million. Total expenditure on consultancies for 2006-07 was $35.02 million – compared with $33.4 million in 2005-06 (pp.229, 247).

STATUTORY AUTHORITIES AND AGENCIES

Anindilyakwa Land Council 2006-07

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

1.30      The ALC reports that the year in review was one of unprecedented achievement which would lay the foundations for significant economic and employment opportunities for future generations (p.8).

1.31      The ALC's objectives, strategies and actions and key performance indicators relating to their various output groups are detailed in the report (pp.15-26).

Australian Institute of Health and Welfare 2006-2007

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

1.33      The report states that AIHW's major focus was establishing the five key strategic directions in the new corporate plan (pp.ix, 14-15).

1.34      The report provides a comprehensive account of AIHW's performance against performance indicators in each of the three output groups and reports that it met the nine performance indicators identified in its Budget Statement (pp.18-80).

1.35      The report notes that in the year in review AIHW produced a record number of 140 publications and maintained 14 national minimum data sets, with another 9 under development (pp.ix-xiii).

Australian Radiation Protection and Nuclear Safety Agency 2006-2007

1.36      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.

1.37      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.8-19).

1.38      The report provides a summary of ARPANSA's performance in table format, as well as a detailed account of performance achievements against the three output groups (pp.28-61).

Australian Sports Anti-Doping Authority 2006-2007

1.39      All reporting requirements are met. The Australian Sports Anti-Doping Authority (ASADA) was established in March 2006 with a goal of making the 'tough on drugs' in sport message even tougher (p.2). The report provides a detailed overview of the Australian Sports Anti-Doping Authority (ASADA) functions and activities.

1.40      The report is well set out in six chapters under the headings: overview, report on performance, management and accountability, financial information, and financial statements.

1.41      ASADA state that their first goal is to deter athletes from involvement in doping by educating at-risk athletes. Innovative programs have been established to achieve this aim (pp.2-3). Detection is another area where robust systems have been put in place as a major deterrent to doping (pp.3-4).

1.42      As a result of increased cost control in the first full year of operations, ASADA reports a surplus of $1.040m versus a nil budget surplus. The surplus was due to an increase in user-pays income and lower than expected operating costs (p.62).

1.43      The report also details the functions and achievements of the Australian Sports Drug Medical Advisory Council (ASDMAC).

Australian Sports Commission 2006-2007

1.44      All reporting requirements are met. The report provides a comprehensive review of the Australian Sports Commission (ASC) functions, activities and outcomes.

1.45      The ASC's key objectives are 'to secure an effective national sports system that offers improved participation in quality sports activities by Australians, and to secure excellence in sports performance by Australians'. One of ASC's key roles is to provide leadership to the Australian sports system in the area of planning for the future (pp.1-2).

1.46      The ASC reports that it works closely with stakeholders and partners to provide a cooperative approach in the delivery of Australia's sports system. The 2006-07 financial year was another year of achievement across a range of program areas. In recognition of the ASC's successful implementation and delivery of the Active After-school Communities program the ASC was awarded joint winner of the Prime Minister's Awards for Excellence in Public Sector Management (pp.2-3).

1.47      The report provides a well structured section on performance and outcomes set out in easily readable table format accompanied by detailed and informative performance results (pp.32-92).

Central Land Council 2006-07

1.48      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.11).

1.49      The report states that during 2006-2007 the CLC had again seen a considerable expansion in its workload, particularly in the areas of land management and community development. Land management continues to be an area of enormous growth and the CLC was well placed to implement programs. Enormous progress had also been made in building the capacity of communities to enable them to move forward, particularly through the work of the community development unit (p.2).

1.50      A detailed account of the CLC's activities, performance and achievements against the six output groups is provided in the report at pp.13-74.

Food Standards Australia New Zealand 2006-2007

1.51             All reporting requirements are met. The FSANZ report outlines a summary of financial performance and outcomes. A comprehensive review of the operations and achievements of FSANZ is also included in the report (pp.22-69).

1.52      Accountability is detailed in the FSANZ report, including key strategic directions and performance targets for the 2007-08 financial year (pp.105-116).

1.53       The report also states that FSANZ Science Strategy 2006-09 identifies a number of strategies to strengthen their scientific capacity in order to equip them to meet future regulatory challenges (p.17).

Indigenous Land Corporation 2006-07

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

1.55      The report outlines in some detail the objectives and performance outcomes relating to land acquisition, land grants, and land management. Performance information covering ILC's business operations is also provided (pp.30-93).

1.56      An overview of ILC's financial results is also included in the report (pp.103-105).

Northern Land Council 2006-07

1.57      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. The NLC is also a Native Title Representative Body and in this capacity represents the Aboriginal people of the Tiwi Islands and Groote Eylandt (p.14).

1.58      The NLC reports that it had improved its performance across nearly every indicator. In the area of land use agreements, the NLC had achieved a 45 per cent efficiency increase since formal performance reporting commenced (p.5).

1.59      The report includes a summary outlining key performance indicators and outcomes and an overview of NLC's financial and operational performance (pp.20-24). A comprehensive Aboriginals benefit account report and Native Title report are also included (pp.26-138), as well as a section outlining NLC's accountability and governance (pp.140-164).

Private Health Insurance Administration Council 2006-2007

1.60             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.28-33).

1.61      The report states that legislative changes covering the private health insurance industry had imposed significant workloads on both insurers and PHIAC in implementing the legislation (p.5).

1.62      PHIAC reports that over the following financial year its principal focus will be on developing prudential standards, undertaking further fund reviews, managing the re-registration process, governance guidelines, implementing the proposed legislation changes, implementing the new Risk Equalisation scheme and reviewing the financial standards (p.5).

Private Health Insurance Ombudsman 2006-2007

1.63      All reporting requirements are met. The Acting Private Health Insurance Ombudsman (PHIO) has provided an informative overview of her role and activities as well as details of projects undertaken by the Office (pp.6-8).

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

1.65      PHIO reports that during the year in review the lowest number of complaints for the last seven years was received concerning private health insurance arrangements. During 2006-07, of the total number of complaints received there was a reduction of 1.4 per cent compared to the previous year, with 5.6 per cent less complaints requiring more detailed investigation (p.12).

Professional Services Review 2006-2007

1.66      All reporting requirements are met. The report provides an informative overview of the operations of the Professional Services Review (PSR) (pp.6-10).

1.67      The report states that the flow of referrals from Medicare Australia to PSR increased to 27 in 2006-07, compared to seven in the previous year. Internal processes had been improved to enable the time taken for initial investigation to be reduced to less than half the time taken previously (pp.2-3).

1.68      Performance measures and outcomes are discussed in the report in detail, including information relating to requests for review, referrals to committees and determinations (pp.12-34).

Tiwi Land Council 2006-2007

1.69      All reporting requirements are met. The report outlines the objectives and outcomes of the Tiwi Land Council (TLC), particularly with regard to land use management and community development projects (pp.5-14).

1.70      The Tiwi Land Council reports that their performance is measured against an outcome/output framework and this provides an outline of their substantial functions and what they are required to achieve each year in undertaking their work. The TLC further reports that these undertakings are now more precisely costed (p.18).

1.71      The report also includes details relating to the Management Committee and management performance outcomes (pp.7-14). As the Committee commented in its previous report, the inclusion in the report of TLC's contact details, such as a mailing address and telephone number would be an advantage.

Torres Strait Regional Authority 2006-2007

1.72      All reporting requirements are met. The report provides a comprehensive account of the functions and operations of the Torres Strait Regional Authority (TSRA), including a corporate overview (pp.20-34).

1.73      During the year in review the TSRA reports that some major issues were progressed and it continued to work successfully towards positive results for the Torres Strait region. Economic development continues to be a high priority for the TSRA and communities are continuing to benefit by building up their economic independence (p.1).

1.74      The report provides detailed performance information against the six output groups. Planned and actual achievements are listed in table format, and well-structured and detailed information, including case studies, covering the objectives and achievements against programs and sub-programs under the six outputs (pp.40-111).

Wreck Bay Aboriginal Community Council 2005-2006

1.75      The Committee notes the very late tabling of the Wreck Bay Aboriginal Community Council's 2005-2006 annual report compared to the Council's previous report.

1.76      The Council's 2005-2006 report was received out of session by the President of the Senate on 23 July 2007 and tabled in the Senate on 7 August 2007. The Letter of Transmittal to the Minister is undated, however the Committee notes the Council's report is dated 20 November 2006 by the Chief Executive Officer (p.26), the same date as the declaration by the Directors of Wreck Bay Enterprises Limited relating to the financial statements (p.66).

1.77      The report provides a detailed account of Wreck Bay Aboriginal Community Council's (WBACC) functions and operations (pp.5-26).

COMMONWEALTH COMPANIES

Aboriginal Hostels Ltd 2006-2007

1.78      All reporting requirements are met. The report provides detailed summaries, including case studies, of the eight regions in which Aboriginal Hostels Ltd (AHL) provides accommodation and assistance (pp.57-86).

1.79      AHL reports that a key outcome is meeting the needs of their clients. Their annual resident survey recorded a pleasing result with 95 per cent of hostel residents expressing satisfaction with the standard of services provided (pp.3, 23).

1.80      The report states that occupancy rates for company-operated hostels remained at a high 74 per cent, and the community-operated hostels occupancy rate increased to 76 per cent (p.18).

1.81      An overview of AHL's performance during the year in review is at pp.16-25. Strategies, targets and outcomes are outlined in table format in the balanced scorecard performance summary across 10 focus areas (pp.48-52).

The Aged Care Standards and Accreditation Agency Ltd 2006-2007

1.82      All reporting requirements are met. The Agency's performance indicators, targets and outcomes achieved are detailed in table format at pp.33-36.

1.83      The Agency reports that 91.8 per cent of homes were assessed as fully compliant with all 44 expected outcomes of the Accreditation Standards at their most recent site audit or review audit. A further 5.2 per cent had only one or two non-compliant expected outcomes which were quickly rectified (p.5).

1.84      The report states that during the year the Agency conducted 1014 site audits to determine accreditation, conducted 94 review audits and accredited 31 commencing services. The Agency also conducted 5221 support contacts, of which 3566 were unannounced, and which compared with 886 unannounced support contacts the previous year (p.6).

1.85      To support the national program of unannounced visits the Agency had developed a set of 12 assessment modules to assist assessors to focus on the key systems and processes of aged care homes that ensure the provision of quality care and services for residents (p.6).

Medibank Private Ltd 2006-2007

1.86      All reporting requirements are met. The report states that Medibank Private achieved a profit result of $295.2 million – a 47.5 per cent increase on the previous year (p.13).

1.87      Medibank Private also reported that their overall membership base grew by 4.5 per cent which was primarily due to their success in recruiting new members and their ability to secure member loyalty (p.13). Key performance indicators are provided in the report at pp.4-5.

 

Senator Claire Moore
Chair

March 2008

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