Chapter 1


Chapter 1

Overview

1.1        The committee is responsible for examining the annual reports of departments and agencies of three portfolios:

  • Health and Ageing (DoHA);
  • Families, Housing, Community Services and Indigenous Affairs (FaHCSIA); and
  • Human Services (DHS).

Terms of Reference

1.2        Under Senate Standing Order 25(20), annual reports of departments and agencies shall stand referred to the legislation committees in accordance with an allocation of departments and agencies in a resolution of the Senate. Each committee shall:

(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 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 to the attention of the Senate 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.

Requirements

1.3        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 satisfactory. In forming its assessment the committee has considered whether the reports comply with the relevant legislation and guidelines in preparation of annual reports:

  • for departments of state and executive agencies these are: the Public Service Act 1999, subsections 63(2) and 70(2), and the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, Department of Prime Minister and Cabinet, updated June 2010 and approved by the Joint Committee of Public Accounts and Audit on 23 June 2010;
  • for Commonwealth authorities and companies: the Commonwealth Authorities and Companies Act 1997 (the CAC Act), sections 9, 36 and 48, and the Commonwealth Authorities and Companies (Report of Operations) Orders 2008 (CAC Orders); and
  • for non-statutory bodies: the requirements are contained in the Government response to the report of the Senate Standing Committee on Finance and Government Operations on Non-statutory bodies, Senate Hansard, 8 December 1987, pp 2643–45.

1.4        A table listing the annual reports of departments and agencies tabled in the Senate (or presented out of session to the President of the Senate), which have been referred to the committee for examination, can be found at Appendix 1.

Timeliness of reports

1.5        Under Standing Order 25(20)(c), the committee must also report to the Senate on any lateness in the presentation of annual reports. The Requirements for Annual Reports published in 2009 state that:

A copy of the annual report is to be presented to each House of the Parliament on or before 31 October in the year in which the report is given...

Where an agency's own legislation provides a timeframe for its annual report, for example 'within six months' or 'as soon as practicable after 30 June in each year', that timeframe applies.[1]

1.6        The majority of annual reports referred to the committee were tabled within the specified period or shortly thereafter. The committee acknowledges that the following organisations provided notification that their reports would be delayed:

  • Anindilyakwa Land Council;
  • Wreck Bay Aboriginal Community Council; and
  • Northern Land Council.

1.7        The Wreck Bay Aboriginal Community Council and Anindilyakwa Land Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs requesting extensions until 15 November 2011 and 19 December 2011 respectively. The Minister granted the extensions, and the request and her reply to Anindilyakwa Land Council were tabled on 21 November 2011.[2] The request of the Wreck Bay Aboriginal Community Council, and subsequent reply from the Minister, were tabled on 7 February 2012. Anindilyakwa Land Council subsequently requested a second extension, and the request and the Minister's response were tabled on 7 February 2012.[3] The Northern Land Council was granted a similar extension to 11 November 2011, however no report has been provided to Parliament, and the committee has not been advised by the Northern Land Council of the expected tabling date.

1.8        The committee notes a number of other late reports, for which no extension was sought nor granted, which it will examine in its second Report on Annual Reports this year.

General comments

1.9        This report considers twenty-one[4] annual reports received during the period of 1 May 2011 to 31 October 2011. Six reports have been assessed to determine whether or not their contents satisfy the detailed legislative requirements as set out in the CAC Act. Nine reports have been checked to ascertain whether or not their contents satisfy the forty-five mandatory criteria for inclusion as set out in the FMA Act. Three of the remaining six reports are incorporated into the appendices of Departments' reports, two are statutory office holders and one is a regulatory scheme.

1.10      Appendix A lists the departments, agencies and bodies required to present annual reports under the three portfolios and the dates on which their reports were tabled. Reports tabled on or after 1 November 2011 will be considered in the committee's second Report on Annual Reports.

1.11      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.

1.12      Notwithstanding the satisfactory nature of the reports, the committee makes the following suggestions to the FaHCSIA, DoHA and DHS departments and agencies reporting under the FMA Act:

  • Departments and agencies should take care to illustrate clearly the OHS initiatives, and the outcomes achieved as a result of such initiatives undertaken over the period in their annual report.
  • Departments and agencies should ensure that performance pay is reported upon in a sufficiently detailed manner.
  • While it is suggested rather than mandatory, departments and agencies are reminded that a statement noting that Commonwealth Fraud Control Guidelines have been complied with should be included in the Letter of Transmittal. Most such letters do not include this statement. The Letter of Transmittal prepared by the NHRMC is a good example of its inclusion.

1.13      The committee makes the following suggestions to the FaHCSIA, DoHA and DHS statutory authorities and companies reporting under the CAC Act:

  • Reports received from statutory authorities and companies generally included useful, substantial information about the core activities of the authority. However, statutory authorities and companies are reminded that the CAC Act also requires them to provide a range of additional details—such as the name of their relevant Minister over the period, any Ministerial directions, and the primary location of their facilities—in their reports.
  • Statutory authorities and companies reporting under the CAC Act are not specifically required to include a compliance index, nor an alphabetical index, and most simply provide a thematic contents page. For ease of reference, the committee suggests that agencies reporting under the CAC Act would be well advised to include at least an alphabetical index at the end of their annual reports.

1.14      The committee suggests the portfolio departments, agencies, statutory authorities and companies integrate these suggestions into their 2011–2012 annual reports.

Comments made in the Senate

1.15      Under Senate Standing Order 25(20)(d), the committee considers remarks made about these reports in the Senate. Senator Helen Polley, Deputy Government Whip, moved a motion on 13 October 2011 that the Senate take note of DoHA's annual report.[5] The Senator continued her remarks in relation to the current work of the government in the area of aged care reform. Senator Stephen Parry, Deputy President of the Senate, also rose in relation to DoHA's annual report on 1 November 2011. Senator Parry noted his appreciation for the report, and made further comments about population health—specifically the immunisation program—in the context of that report.[6]

1.16      While not rising to speak specifically on the annual report, Senator Anne Urquhart cited statistics in relation to organ and tissue donation on 31 October 2011, two sitting days after the tabling of the annual report from the Australian Organ and Tissue Donation and Transplantation Authority. Senator Urquhart noted that 2010 was a 'record year' for organ donation and urged Australians, via the chamber, to consider registration as an organ donor.[7]

Bodies not presenting annual reports to the Senate

1.17      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.

Specific comments: annual reports of departments

Department of Families, Housing, Community Services and Indigenous Affairs

1.18      The annual report of the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) provides a comprehensive review of the Department's operations over the period.

1.19      Significant initiatives for which the Department had responsibility in 2010–11 included the implementation of the Paid Parental Leave scheme and reform to the Family Support Program. The Paid Parental Leave scheme commenced on 1 January 2011, providing eligible working parents with up to 18 weeks pay of the national minimum wage.[8] The Department estimates that around 148 000 families will be eligible to receive the payment each year.[9] The Department also worked throughout the period to improve the family payment system. The Family Support Program commenced on 1 July 2011, increasing the flexibility of advance payments of the Family Tax Benefit Part A.[10]

1.20      In addition, the Department was closely involved in the development of the government response to the Productivity Commission's inquiry Disability Care and Support, input towards the Carer Recognition Act 2010 and the development of the National Disability Strategy.

1.21      The Department noted that it continues to work on the government response to the Productivity Commission's report, which particularly addresses the costs, benefits and feasibility of a National Disability Insurance Scheme (NDIS).[11] With respect to carers, the Department's report stated that following the release of the National Carer Strategy, FaHCSIA will work towards its implementation to promote social, economic and community activities for carers.[12] The Secretary's Review noted that National Disability Strategy is the first occasion on which  a national approach has been taken to disability issues:

For the first time, all levels of government have committed to a unified, national approach to disability issues...

The strategy establishes a 10-year reform agenda for governments, industry and the community to address the barriers faced by Australians with disability. It aims to create better services, programs and community infrastructure to ensure that people with disability can access quality education, health care and job support, as well as buildings, transport and media, so that people with disability can participate as equal citizens.[13]

1.22      The committee welcomes these policy developments and looks forward to the Department reporting positive concrete outcomes as a result of the implementation of complementary, practical measures in future annual reports.

Department of Health and Ageing

1.23      The Department of Health and Ageing (DoHA) annual report provides a detailed, well-structured and outcome-focused review of the Department's functions and operations in the financial year 2010–11.

1.24      The Secretary's Review noted that during 2010–11 the Department was closely involved in the implementation of two intergovernmental agreements: the National Health and Hospitals Network Agreement (NHHN) and the National Partnership Agreement on Improving Public Hospital Services (National Partnership Agreement).[14] In addition, the Department completed work towards the National Health Performance Authority (NHPA) legislation to establish a body to monitor public and private hospitals as well as new Medicare Locals.

1.25      Under the National Partnership Agreement, the Department has approved more than 340 project proposals at hospitals across the states and territories, amounting to more than $1 billion since June 2010.[15] The Department continues to assess projects for the 2011–12 expenditure under the Agreement.[16]

1.26      The MyHospitals website was launched during the period. The website allows consumers to access information about public and private hospitals. The site received around 265 000 visits between 10 December 2010 and 30 June 2011, and by the later date, included information about 980 hospitals.[17]

1.27      Three major primary health care developments over the period were the commencement or construction of 31 GP Super Clinics, the engagement of 19 Medicare Locals and the operation of the after hours GP helpline.[18] In the area of mental health, the Department noted the major budget announcements in relation to the Delivering National Mental Health Reform package. The Department will continue to implement the measures contained in the reform package, including their intersection with primary health care:

ATAPS fund holding arrangements will transition from Divisions of General Practice to Medicare Locals as they are established and demonstrate capacity to deliver mental health services during 2011–12. This transition will need to be managed carefully to ensure continuity of service delivery for existing and new clients.[19]

1.28      The committee notes that a corrigendum to the Department of Health and Ageing's annual report was tabled in the Senate on 31 October 2011. The corrigendum corrected a printing error which caused the names and positions of Therapeutic Goods Administration SES officers not to be displayed.

Department of Human Services

1.29      The reports received from the Department of Human Services and its service delivery agencies together provide an illustration of the policy and practical developments undertaken by the portfolio as a whole during 2010–11. The Department of Human Services' (DHS) report reflects the integration of several portfolio agencies into a single state department. As the Secretary explained:

On 1 July 2011 the Human Services Portfolio became a single department of state. The integration of the Department of Human Services (DHS) is part of the Government's Service Delivery Reform (SDR) agenda to make it easier for Australians to get the services they need in a way that suits their circumstances. The names that Australians know—Centrelink, Medicare, the Child Support Agency and CRS Australia—will continue under DHS.[20]

1.30      The Department noted that the government has invested $1.2 billion in the SDR over four years. During 2010–11, the Department, together with Centrelink and Medicare Australia, managed the integration of services including people management, IT, records management and parliamentary and ministerial functions.[21]

1.31      As part of the integration, DHS opened 47 additional co-located offices for delivery of services including Centrelink, Medicare and Child Support, and five new Local Connections to Work (LCTW) sites.[22] DHS' report also noted that over the period, more than 42 000 customers transferred to the Department's single online portal through which they can access Centrelink, Medicare and Child Support accounts.[23]

1.32      DHS met its required targets over the period. The Secretary's review noted that DHS met its key performance indicators in 2010–11, including the introduction of SDR initiatives, fraud and compliance measures and the Income Management Card. The Child Support Program (CSP) also met its targets, including reducing the growth of outstanding child support debt which fell from 7.4 per cent in 2009–10 to 2.4 per cent in 2010–11. CRS Australia met the target for certification in Disability Service Standards.

1.33      The committee notes that DHS annual reports were all provided in a timely manner. As well as the Department, the annual reports from each of the other five portfolio agencies, authorities and companies were received by the Minister and tabled in the Senate on or before 31 October 2011.

Senator Claire Moore

Chair

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