Chapter 1


Chapter 1

Overview

1.1        This is the second Senate Community Affairs Legislation Committee (the committee) report on annual reports for 2012. It provides an overview of the committee's examination of annual reports for the 2010–11 financial year tabled between 1 November 2011 and 30 April 2012.[1]

Terms of Reference

1.2        On 29 September 2010,[2] a resolution of the Senate allocated the following three portfolios to this committee:

  • Health and Ageing
  • Families, Housing, Community Services and Indigenous Affairs; and
  • Human Services.

1.3        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.

Purpose of annual reports

1.4        The primary purpose of annual reports is accountability, in particular to the Parliament.[3] The tabling of annual reports places a great deal of information about government departments and agencies on the public record and assists in the effective examination of the performance of departments and agencies and the administration of government grants.

Annual reporting requirements

1.5        Senate Standing Order 25(20) requires that committees 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.

1.6        Pursuant to subsections 63(2) and 70(2) of the Public Service Act 1999, departments of state and executive agencies must prepare annual reports in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies.[4]

1.7        Amendments to the Requirements for Annual Reports applicable for the 2010–11 reporting period are:

  • Commonwealth Disability Strategy – the requirement to report on the implementation of the Commonwealth Disability Strategy in annual reports has been discontinued.
  • Social inclusion reporting – accommodating social inclusion measurement and reporting strategies.
  • Freedom of Information – accommodating recent major reforms to Freedom of Information legislation.[5]

1.8        Under section 48 of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Minister for Finance and Deregulation outlines the annual reporting requirements for Commonwealth authorities and companies in the Commonwealth Authorities and Companies (Report of Operations) Orders. Section 9 of the CAC Act applies to Commonwealth authorities and specifies the deadline for the presentation of an annual report to the responsible Minister. Section 36 of the CAC Act outlines the reporting obligations of Commonwealth companies.

1.9        Statutory authorities must report in accordance with their establishing legislation.

1.10      Requirements for the annual reports of non-statutory bodies are set out in the Government Response to recommendations of the then Senate Standing Committee on Finance and Government Operations in its report entitled Reporting Requirements for the Annual Reports of Non-Statutory Bodies. The response was incorporated into the Senate Hansard of 8 December 1987.[6]

1.11      The committee notes that some of the bodies that are required to produce annual reports to the Senate fall outside the categories listed above.  In these cases, examination of the annual report is based on general content and information rather than compliance with legislation and guidelines.

Apparently satisfactory

1.12      Standing order 25(20)(a) requires the committee to report to the Senate on whether annual reports are 'apparently satisfactory'. In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.

General comments

1.13      In its Report on Annual Reports (No. 1) 2012, the committee considered twenty-one annual reports received during the period of 1 May 2011 to 31 October 2011. This second report considers a further twenty-one annual reports received after 31 October 2011. Fourteen annual reports have been examined to determine whether or not their contents satisfy the detailed legislative requirements as set out in the CAC Act. Two annual reports have been checked to ascertain whether or not their contents satisfy the mandatory criteria for inclusion as set out in the FMA Act. Two statutory office holders, one statutory body, and one statutory agency were assessed. One annual report was produced and referred to the committee without legislative requirement.

1.14      A list of the annual reports of departments, agencies and other bodies tabled in the Senate (or presented out of session to the President of the Senate), and referred to the committee for examination, can be found at Appendix 1.  The table shows the legislation under which reports are required to be provided, tabling information, and the reporting period during which the report was provided.

1.15      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. However, some specific comments about timeliness and adherence to reporting requirements are given below.

Timeliness of reports

1.16      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 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.[7]

1.17      If a department or agency is unable to meet this deadline, the secretary or agency head is to advise the responsible Minister of the reasons for the delay and the expected tabling date. The responsible Minister is to table this explanation in the Parliament.[8]

1.18      Subsection 9(1) of the CAC Act requires the director of a Commonwealth authority to:

(a) prepare an annual report in accordance with Schedule 1 for each financial year; and 

(b) give it to the responsible Minister by the deadline for the financial year for presentation to the Parliament.

...

(2) The deadlines is:

(a) the 15th day of the 4th month after the end of the financial year; or

(b) the end of such further period granted under subsection 34C(5) of the Acts Interpretation Act 1901.

1.19      Under section 36 of the CAC Act:

(1)   A Commonwealth company must give the responsible Minister:

(a)    a copy of the company's financial report, directors' report and auditor's report that the company is required by the Corporations Act 2001 to have for the financial year (or would be required by that Act to have if the company were a public company); and

(b)   any additional report under subsection (2); and

(c)    in the case of a wholly-owned Commonwealth company— any additional information or report required by the Finance Minister's Orders.

(1A) The Commonwealth company must give the reports and information by:

(a) if the company is required by the Corporations Act 2001 to hold an annual general meeting—the earlier of the following:

(i) 21 days before the next annual general meeting after the end of the financial year;

(ii) 4 months after the end of the financial year; and

(b) In any other case – 4 months after the end of the financial year; or the end of such further period granted under subsection 34C(5) of the Acts Interpretation Act 1901.

1.20      In the absence of any specific provision, subsection 34C(2) of the Acts Interpretation Act 1901 requires bodies to present annual reports to ministers within 6 months after the end of the period reported upon, and ministers must table reports within 15 sitting days after receipt.

1.21      The majority of the annual reports referred to this committee were tabled within the specified period or shortly thereafter. The committee acknowledges that the Anindilyakwa Land Council, the Northern Land Council, and the Wreck Bay Aboriginal Community Council all provided notification that their reports would be delayed.

Anindilyakwa Land Council

1.22      Anindilyakwa Land Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs on 25 November 2011 seeking a further extension to the annual report deadline under section 34C(4) of the Acts Interpretation Act 1901. The Minister had originally granted an extension until 28 November and this was extended to 19 December 2011. The Clerk tabled a statement pursuant to subsection 34(7) relating to the delay in the presentation of the Anindilyakwa Land Council's annual report 2010–11.[9] The annual report for the Anindilyakwa Land Council was transmitted to the Minister on 19 December 2011, received on 1 February 2012, and tabled in the Senate on 13 March 2012.

Northern Land Council

1.23      In its Report on Annual Reports (No. 1) 2012, the committee noted that the Northern Land Council sought an extension until 11 November 2011 to submit its annual report, and that the extension was granted. However, the Northern Land Council's annual report had not been tabled when the committee's Report on Annual Reports (No. 1) 2012 was published in March 2012.

1.24      The Northern Land Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs on 16 March 2012 under section 34C (4) of the Acts Interpretation Act 1901 requesting an extension until 4 April 2012 to table its annual report. The Minister wrote to the Northern Land Council granting the request. The committee wrote to the Northern Land Council on 4 April 2012 requesting advice as to why the Council had been unable to meet its extended deadline for the 2010–11 reporting period. The Northern Land Council replied on 11 April 2012 explaining the outstanding matters that needed to be resolved prior to submission of the annual report. The Northern Land Council annual report was provided to the President of the Senate out of session on 29 March 2012 and was tabled in the Senate on 10 May 2012.[10] The Clerk tabled a statement pursuant to subsection 34C(7) of the Acts Interpretation Act relating to the delay in the presentation of the Northern Land Council's annual report 2010–11.[11]

Wreck Bay Aboriginal Community Council

1.25      The Wreck Bay Aboriginal Community Council (WBACC) wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs on 21 September 2011 requesting an extension until 15 November 2011. The Minister granted the extension. The annual report for the WBACC was transmitted to the Minister on 13 December 2011, received on 13 February 2012, and tabled in the Senate on 13 March 2012. The Clerk tabled a statement pursuant to subsection 34(6) relating to the delay in the presentation of the WBACC annual report 2010–11.[12]

Equal Opportunity for Women in the Workplace Agency

1.26      The committee notes that Part III, Subsection 12(1) of the Equal Opportunity for Women in the Workplace Act 1999, requires the Equal Opportunity for Women in the Workplace Agency (EOWA), as soon as practicable, and in any event within 6 months after each 31 May, to submit to the Minister a report on its operations.  The committee notes that EOWA's annual report 2010–11 was not transmitted until 23 January 2012 and did not therefore comply with this requirement.

Publishing Standards for the Presentation of Documents to the Parliament

1.27      The Department of Prime Minister and Cabinet has produced Guidelines for the Presentation of Documents to the Parliament.[13] Section 4 covers the Presentation of Government documents (including Department and agency annual reports) to Parliament. Section 4.1, Printing and publishing standards for documents, states that:

Documents to be included in the Parliamentary Papers Series must be printed on International B5 size paper.

The committee requests that General Practice Education and Training Limited, Health Workforce Australia, and the Northern Land Council comply with these guidelines in future annual report publications.

Compliance Index

1.28      The committee reminds EOWA that in its Report on Annual Reports (No. 1) 2011,[14] the committee noted that the EOWA annual report 2009–10 did not contain a compliance index, as set out in the Requirements for Annual Reports.[15] The committee again requests that EOWA comply with the requirement to include a compliance index in its future annual reports.

1.29      The committee notes that while many CAC Act authorities and companies have included a compliance index in their annual reports, some have not.

1.30      The committee notes that as part of the new reporting requirements for Commonwealth Authorities (Annual Reporting) Orders 2011,[16] Anindilyakwa Land Council, Indigenous Land Corporation, the Northern Land Council, and the Tiwi Land Council will in future be required to include a compliance index in their annual reports. The committee asks all Commonwealth authorities that report to the Community Affairs committee familiarise themselves with these Orders.

1.31      The committee also notes that as part of the new reporting requirements for Commonwealth Companies (Annual Reporting) Orders 2011,[17] Aboriginal Hostels Limited, Outback Stores, the Aged Care Standards and Accreditation Agency Limited, and General Practice Education and Training Limited will be required to include a compliance index in their annual reports. The committee asks all Commonwealth companies that report to the Community Affairs committee to familiarise themselves with these Orders.

1.32      The committee was particularly impressed with the compliance index included in the annual report of the Social Security Appeals Tribunal (SSAT).[18] The committee considers the compliance index in the SSAT annual report to be an example of best practice because it is displayed clearly and is laid out sequentially in the same format and order as the Requirements for Annual Reports prescribed by the Department of the Prime Minister and Cabinet. The committee notes however that the absence of a compliance index is not necessarily any indication of the quality of the information in the report itself.

Letter of Transmittal

1.33      The committee reminds all CAC Act bodies that the Letter of Transmittal to the Minister needs a statement that the report is made in accordance with a resolution by directors, and a statement that directors are responsible under section 9 of the CAC Act. Most bodies complied with these requirements, but a few did not.

New reporting requirements for 2011–12

FMA Act bodies

1.34      The committee notes that the Joint Committee of Public Accounts and Audit has approved changes to the Requirements for Annual Reports for the 2011–12 reporting period.[19] All affected entities should familiarise themselves with the updated requirements.

Awards

Australasian Reporting Awards

1.35      The committee congratulates the Northern Land Council for its third consecutive Gold Award at the Australasian Reporting Awards. To receive a Gold Award a report must:

  • Achieve overall excellence in annual reporting.
  • Provide high-quality coverage of most aspects of the ARA Criteria.
  • Provide full disclosure of key aspects of its core business.
  • Address current legislative and regulatory requirements.
  • Be a model for other peer reports.

1.36      The committee notes elsewhere in this report, however, that the Northern Land Council's report has not always been timely and has raised compliance questions for the committee.

1.37      The committee also congratulates Aboriginal Hostels Limited, Australian Hearing, and the Department of Health and Ageing for receiving Gold Awards at the Australasian Reporting Awards.

1.38      The committee congratulates Indigenous Business Australia, and the Department of Families, Housing, Community Services and Indigenous Affairs for receiving Silver Awards at the Australasian Reporting Awards.

Institute of Public Administration Australia (IPAA) ACT Division Annual Report Awards

1.39      The committee congratulates Indigenous Business Australia for its Silver Award in the CAC Bodies division of the Institute of Public Administration Australia (IPAA) ACT Division Annual Report Awards. The IPAA  noted that:

Indigenous Business Australia (IBA) has put considerable effort into the content and presentation of their Annual Report. Particular consideration has been given to the impact of the presentation of the material on the reader – all to very good effect.

The highlights page of this report imaginatively sets out key achievements and attracts the attention of readers instantly.

Program achievements were clearly explained in more detail later in the Report.

The uses of striking thematic graphics are effective and convey concepts easily.

The report highlights good collaboration with other organisations and engagement with clients and stakeholders. As with all better practice organisations, IBA provides readers with an opportunity to provide feedback on the report.

In summary, this annual report contained a number of eye catching features and was a pleasure to read.

1.40      The committee congratulates Indigenous Land Corporation for its Bronze Award in the CAC Bodies division of the Institute of Public Administration (IPAA) ACT Division Annual Report Awards. The IPAA  noted that:

This well balanced report contains a good flow of information, case studies and the selective use of photographs.

The report is easy to read and understand. The overall appearance of the report is attractive and would provide readers with an incentive to continue reading through the Report.

The Corporation demonstrated engagement with communities and other stakeholders.

Presentation of the quantitative results for Ecologically Sustainable Development performance indicators is particularly commendable.

Overall, this annual report is attractively presented, very well balanced and describes the Corporation’s activities in a clear and easily understandable way.

1.41      The committee congratulates the Australian Institute of Health and Welfare for its Bronze Award in the CAC Bodies On-Line division of the Institute of Public Administration Australia (IPAA) ACT Division Annual Report Awards and its Silver Award at the Australasian Reporting Awards. The IPAA noted that:

This on-line annual report is well-presented report in both pdf and HTML, and was easy to find on the website.

Colours, add-ins and graphics display well in both versions.

The use of snap shots by way of examples adds to the usefulness of the report.

The viewer can readily determine their location within the annual report at any stage during their perusal of the report.

Some notes in the financial statements were hyperlinked but this feature did not appear to be comprehensive.

Overall, this is a very competent and well-presented on-line annual report and it is hoped that the Australian Institute of Health and Welfare persist with the process of continuous improvement over the coming years.

Comments made in the Senate

1.42      The committee is obliged, under Senate Standing Order 25(20)(d), to take into account any relevant remarks made about these reports in the Senate. On 22 March 2012 Senator Heffernan noted that the annual report of the Torres Strait Regional Authority (TSRA) 'is a good example of how they cooperate with each other and it outlines what they have achieved for their people'.[20]

Bodies not presenting annual reports to the Senate

1.43      In accordance with Standing order 25(21)(h), 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.

1.44      The committee notes that the National E-Health Transition Authority (NEHTA) has been invited to several estimates hearings and has received a significant number of questions on notice arising from those hearings, including questions around the issues of funding, expenditure and governance. The committee notes that NEHTA is not required to present an annual report to Parliament.[21]

1.45      Given NEHTA's significant public funding and responsibilities that go to Commonwealth policy and funding, the committee asks the government to consider whether, as a principal shareholder in NEHTA, it should make arrangements for the report to be presented to Parliament.

Recommendation 1

1.46      The committee recommends that the Commonwealth government review whether an annual report of NEHTA should be presented to Parliament.

Additional Reports

1.47      In addition to the reports listed in Appendix 1, the following reports were also referred to and received by the committee between the period of 1 November 2010 and 30 April 2011.  The committee notes that these reports are referred to it for their information only and the committee is not required by the terms of the Standing Order to report on these:

  • Australian Competition and Consumer Commission 2012 — Report to the Australian Senate on anti-competitive and other practices by health funds and providers in relation to private health insurance for the period 1 July 2010 to 30 June 2011 (tabled in the Senate 18/06/2012)
  • Australian Government Department of Finance and Deregulation 2011— Consolidated Financial Statements for the Year ended June 2011 (tabled in the Senate 07/02/2011)
  • Australian Government Department of Finance and Deregulation 2011— Mid-Year Economic and Fiscal Outlook 2011–12 (tabled in the Senate 07/02/2011)
  • Australian Government Department of Finance and Deregulation 2011— Issues from the Advances under the Annual Appropriation Acts — Annual Report 2010–11 (tabled in the Senate 07/02/2011)
  • Australian Government Department of Health and Ageing 2011— Report on the Operation of the Aged Care Act 1997 2010–11 (tabled in the Senate 07/02/2011)
  • Australian Government Department of Health and Ageing 2012 — Report on the Second Review of the Dental Benefits Act 2008 (tabled in the Senate 20/03/2012)
  • Australian Government Department of Health and Ageing 2012 — Report to Parliament on the meeting of the Pharmaceutical Industry Discussion Group (PIDG) to identify and examine potential unintended consequences of the 2010–11 Budget Measure Further Pharmaceutical Benefits Scheme (PBS) Pricing Reform (tabled in the Senate 13/03/2012)
  • Australian Government Department of Health and Ageing 2012 — Tobacco Advertising Prohibition Act 1992, Report for 2011 pursuant to section 34A of the Act (tabled in the Senate 19/06/2012)
  • Australian Government Department of Health and Ageing 2012 — Australian Government Actuary — Seventh report on the costs of the Australian Government's run-off cover scheme for medical indemnity insurers — 2010–11 — Section 34ZW of the Medical Indemnity Act 2002 (tabled in the Senate 14/08/2012)
  • Australian Government Department of Health and Ageing 2012 — Australian Government Actuary — First report on the costs of the Australian Government's run-off cover scheme for midwife professional indemnity insurers — 2010-11 — Section 48 of the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010 (tabled in the Senate 14/08/2012)
  • Australian Health Practitioner Regulation Agency (AHPRA) — Annual Report 2010–11 (tabled in the Senate 14/11/2011)
  • Australian Institute of Health and Welfare 2012  Australia's Welfare 2011 — Tenth Biennial Health Report (tabled in the Senate 07/02/2012)
  • Australian Institute of Health and Welfare 2012 — Australia's Health 2012 — Thirteenth Biennial Health Report (tabled in the Senate 26/06/2012)
  • Australian Radiation Protection and Nuclear Safety Agency — quarterly report for period 1 October 2011 to 31 December 2011 (tabled in the Senate 28/02/2012)
  • Australian Radiation and Nuclear Safety Agency — Quarterly report for the period 1 January to 31 March 2012 (tabled in the Senate 19/06/2012)
  • Australian Radiation and Nuclear Safety Agency — Quarterly report for the period 1 April to 30 June 2012 (tabled in the Senate 21/08/2012)
  • Centrelink and the Data-Matching Agency 2011 — Data-matching Program — Report on Progress 2007–10 (tabled in the Senate 05/07/2011)
  • Medical Training Review Panel 2012 — Fifteenth Report (tabled in the Senate 10/05/2012)
  • National Health and Medical Research Council (NHMRC) 2012 – NHMRC Embryo Research Licensing Committee — report on the operation of the Research Involving Human Embryos Act 2002 for period 1 September 2010 to 28 February 2011 (tabled in the Senate 22/06/2011)
  • National Health and Medical Research Council (NHMRC) 2012 — NHMRC Embryo Research Licensing Committee — report on the operation of the Research Involving Human Embryos Act 2002 for period 1 March to 31 August 2011 (tabled in the Senate 07/02/2012)
  • National Health and Medical Research Council (NHMRC) 2012 — NHMRC Embryo Research Licensing Committee — report on the operation of the Research Involving Human Embryos Act 2002 for period 1 September to 29 February 2012 (tabled in the Senate 26/06/2012)
  • National Health and Medical Research Council (NHMRC) 2012 — Implementing the 2010–12 NHMRC Strategic Plan — Section 63 of the National Health and Medical Research Council Act 1992 (tabled in the Senate 21/08/2012)
  • Office of the Gene Technology Regulator — Quarterly report for 1 April to 30 June 2011 (tabled in the Senate 21/11/2011)
  • Office of the Gene Technology Regulator — Quarterly report for 1 July to 30 September 2011 (tabled in the Senate 07/02/2011)
  • Office of the Gene Technology Regulator — Quarterly report for 1 October to 31 December 2011 (tabled in the Senate 09/05/2012)
  • Office of the Gene Technology Regulator — Quarterly report for 1 January to 31 March 2012 (tabled in the Senate 14/08/2012)
  • Private Health Insurance Administration Council 2011 — Report on the Operations of Private Health Insurers 2010–11 (tabled in the Senate 07/02/2011)

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