Chapter 2


Chapter 2

Annual reports of Commonwealth Authorities under the CAC Act

2.1        This chapter reviews and provides selected comments on portfolio annual reports.

Health and Ageing Portfolio

Australian Institute of Health and Welfare

2.2        The Australian Institute of Health and Welfare (AIHW) was established as a Commonwealth statutory authority in 1987 'to collect, analyse and disseminate health- and welfare-related information and statistics'.[1]

2.3        During the reporting period, The Hon. Andrew Refshauge replaced the Hon. Peter Collins AM, QC as Board Chair and Mr David Kalisch replaced Dr Penny Allbon as Director.

2.4        The committee finds the AIHW annual report to be particularly well laid out and easy to navigate. The annual report includes a thorough compliance index that specifies compliance with the information requirements in the Commonwealth Authorities and Companies Act 1997 and in particular Part 2 of Schedule 1 of the Commonwealth Authorities and Companies (Report of Operations) Orders 2008.

2.5        The committee notes that the annual report was clearly readable against the Portfolio Budget Statements 2010–11[2] and congratulates the AIHW for meeting all of its deliverables and key performance indicators within the specified timeframes.[3]

2.6        The annual report notes that AIHW worked closely with the Council of Australian Governments (COAG) under the National Healthcare Agreement to measure and monitor the performance indicators used by COAG to develop and implement its policy reform agenda. This activity was funded by a significant increase in appropriation funding in 2009–10.[4] Appropriation funding grew from $20.7 million in 2009–10 to $21.4 million in 2010–11 and is expected to decrease by approximately $4 million in 2011–12 as the COAG-funded data development component is completed. Income from externally funded projects totalled $31.4 million for 2010–11.[5] The majority of this external income came from projects undertaken for the Department of Health and Ageing (DoHA) and the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).

2.7        The AIHW performed its functions within budget with total expenditure for 2010–11 being $53.8 million[6] as against estimated expenditure of $56.4 million.[7]

2.8        The annual report points to several new products developed by the AIHW in 2010–11 including:

  •  the MyHospitals website in 2010 in consultation with the states and territories.
  • the AIHW Indigenous web observatory and The health and welfare of Australia’s Aboriginal and Torres Strait Islander people, an overview 2011.
  • What works to overcome Indigenous disadvantage: key learnings and gaps in evidence, 2009–10, an evaluation report of the Closing the Gap program.
  • The health of Australia's males, including a companion report summary and an accompanying online dashboard.
  • The Specialist Homelessness Services data collection developed under the National Affordable Housing Agreement.
  • A national pilot test of the draft Mental Health Interventions Classification.

2.9        The committee commends the AIHW on the greater emphasis that AIHW has placed on 'getting the message out' such as the Briefs that accompany some of its major reports with key information presented in graph format.[8]

2.10      The annual report notes that the AIHW has collaborated with the National E-Health Transition Authority (NEHTA) 'to assess the implications of the development of e-health for statistical collections in the future'.[9] However, there is no comment about the status of this collaboration and no comment on the outcomes or potential outcomes of any analysis that has been undertaken. The committee looks forward to information on the outcome of this analysis in the 2011–12 annual report.

Food Standards Australia New Zealand

2.11      Food Standards Australia New Zealand (FSANZ) was established as a Commonwealth statutory authority under the Food Standards Australia New Zealand Act 1991 to protect public health and safety, provide adequate information to consumers, and prevent misleading or deceptive conduct.[10]

2.12      The annual report notes that FSANZ remained within budget with operating revenue of $22.43 million and operating expenses of $22.38 million.[11] These figures compared favourably with the estimated budget expenses of $22.19 million.[12]

2.13      The committee notes that the annual report was readable against the Portfolio Budget Statements 2010–11.[13] The committee congratulates FSANZ for exceeding targets in some categories such as citizen and stakeholder engagement.

2.14      The committee notes that the finalisation of 'primary production and processing standards for meat and meat products, and seed sprouts' were forecast in the Portfolio Budget Statements.[14] The committee commends FSANZ on a thorough review of regulatory standards and activities during the year that details the issues that have caused a delay in finalising primary production and processing standards for meat and meat products. FSANZ also provides an update of the next stage of the process in developing draft standards,[15] and the committee looks forward to learning about the progress made in 2011–12.

2.15      The committee suggests that in future annual reports in the section on Priorities and Performance, FSANZ might consider including a brief reference to an issue such as the delay in finalising primary production and processing standards for meat and meat products. This would enhance efforts to make the performance aspects of the annual report explicitly readable against the Portfolio Budget Statements.

Families, Housing, Community Services and Indigenous Affairs Portfolio

The Land Councils

2.16      The committee particularly commends the four Northern Territory land councils for moving to harmonise their outcomes structure and adopting a consistent approach to measuring and reporting on performance. The six outputs common to the Anindilyakwa, Central, Northern and Tiwi Land Councils are:

  • Land, sea and natural resource management support services
  • Land claims and acquisitions support services
  • Economic development and commercial services
  • Advocacy services
  • Administration services
  • Native title

Anindilyakwa Land Council

2.17      The committee commends the Anindilyakwa Land Council on a well-presented and informative annual report. The committee particularly commends the Anindilyakwa Land Council on the progress made with Township Leasing.

2.18      The committee notes that the report would benefit from a compliance index as well as an index and glossary. Statistics on the total number of staff employed and the basis of their employment would be useful including full-time/part-time, ongoing/non-ongoing, and gender.

Central Land Council

2.19      The committee commends the Central Land Council on a comprehensive, well-presented, and very informative annual report that met almost all the reporting requirements. One easily met requirement is to ensure that the letter of transmittal to the Minister states that the report is made in accordance with a resolution by the directors and that the director(s) are responsible under section 9 of the CAC Act.

Northern Land Council

2.20      The committee finds the Northern Land Council annual report to be beautifully presented, informative, and easy to read.

2.21      The committee particularly commends the Northern Land Council for outlining some of the key challenges that it has faced during the reporting period and expects to face in the future. The committee anticipates learning more about developments  regarding  the proposed new land council and the determinations of the Hon Howard W. Olney AM QC, Aboriginal Land Commissioner.

2.22      The committee acknowledges the Gold Award received by the Northern Land Council for its annual report, but considers that the report would benefit from the inclusion of a compliance index that would enable the reader to easily identify whether all the requirements for the annual report had been met. It was not clear whether compliance items such as judicial decisions, ministerial directions and general policies, indemnities and insurance premiums, the Environmental Protection and Biodiversity Conservation Act 1999, Freedom of Information, a List of SES staff, and Fraud Control Guidelines were noted in the annual report.

Tiwi Land Council

2.23      The Tiwi Land Council has produced a concise, coherent, well laid out, and easily understood annual report that covers key issues such as economic development and commercial services, and provides comprehensive coverage of the Tiwi Land Council's response to Commonwealth and Territory legislation. The annual report touches on many of the main legislative requirements, but could be further improved with attention to issues around staffing.

Indigenous Business Australia

2.24      Indigenous Business Australia (IBA) is a statutory authority under the CAC Act and is enabled by the Aboriginal and Torres Strait Islander Act 2005. 

2.25      The IBA annual report was well-presented, coherent, easy to navigate, and made good use of graphs, diagrams, charts and pictures. The committee commends IBA for the inclusion in the annual report of a thorough compliance index that specifies compliance with the requirements of the Commonwealth Authorities and Companies (Report of Operations) Orders 2008 and the Aboriginal and Torres Strait Islander Act 2005. The committee was also impressed that IBA has demonstrated a commitment to better practice in annual reporting through its compliance with some additional non-mandatory principles from the Requirements for Annual Reports[16] and the Corporate Governance Principles and Recommendations with 2010 Amendments.[17]

2.26      The annual report was clearly readable against the Portfolio Budget Statements 2010–11, and the committee notes that IBA performed its functions within budget with total expenditure for 2010–11 being $166.84 million[18] as against estimated expenditure of $167.55 million.[19]

2.27      The committee also notes that IBA returned a surplus of $6.8 million in 2010–11 compared to the deficit of $56.5 million in 2009–10. The annual report states that this marked improvement was primarily due to a significant reduction in expenses attributable to the divestment of subsidiaries, interest rate stability that led to a reduction in loan valuation discount expenses, as well as extraordinary losses on investment divestment activities that had occurred in 2009–10.[20]

2.28      The committee notes that the IBA Equity and Investment Program exceeded its target for Indigenous employment by creating or supporting 264 jobs for Indigenous Australians, an increase of 19 per cent on 2009–10.[21]

2.29      The committee also congratulates IBA for exceeding its performance target for its Home Ownership Program (HOP).[22] The committee also notes that in contrast to the industry norm, the majority of IBA loans are for housing in non-metropolitan regions.[23]

2.30      The committee notes that the limited availability of suitable land tenure and administration arrangements impacted negatively on the IBA performance targets for the Home Ownership on Indigenous Land Program (HOIL).[24] The committee looks forward to learning in the 2011–12 annual report about the processes that have led to the combining of the HOP and HOIL programs.

2.31      The annual report also indicates that the survival rates of IBA business loan customers in the Business Development and Assistance program compare very favourably with national business statistics.[25] The committee looks forward to finding out about IBA's progress in 2011–12 as it strives to enhance its program and reduce the gap between the levels of Indigenous and non-Indigenous business ownership.[26]

2.32      The committee anticipates learning of the new system to monitor and recognise performance that is being developed by managers, staff and external experts.

Wreck Bay Aboriginal Community Council

2.33      The Wreck Bay Aboriginal Community Council (WBACC) was established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 (Land Grants Act). The Council commenced operations in 1987.[27]

2.34      The WBACC does not receive annual appropriations, but did apply for and receive an annual grant under the Advancement of Rights to Land and Sea program administered by the Department of Families, Housing, Community Services and Indigenous Affairs.

2.35      Wreck Bay Enterprises Limited (WBEL) is a wholly owned subsidiary of the WBACC. The annual report notes that WBEL has operated without any Government grant or subsidy during the year, has paid $1.25 million in employee benefits (salaries to the Wreck Bay community), and made a net profit of $29 796 in 2010–11.[28] The committee notes that WBEL was officially amalgamated back under the Wreck Bay Aboriginal Community Council structure during 2010–11.[29]

2.36      The committee congratulates the WBACC on the completion of the Gudjahgahmiamia Early Education and Day-care facility which received a Multi Aboriginal Community Service grant from the Department of Education, Employment and Workplace Relations. The committee also notes that the annual report points out that funds from the WBACC, parent fees, and fundraising activities are needed to ensure the centre's sustainability.

Annual reports of Commonwealth Companies under the CAC Act

Families, Housing, Community Services and Indigenous Affairs Portfolio

Outback Stores

2.37      Outback Stores currently manages 24 stores across some of the most remote parts of the Northern Territory, Western Australia and South Australia' with 'a mandate to improve the affordability and quality of nutritious food available in communities'.[30]

2.38      Outback Stores turned over $63 million from 25 stores.[31] The Chairman notes that Outback Stores remains committed to operating at a small surplus on an ongoing basis. Outback Stores made a loss of $70 000 in 2010–11, a significant improvement on the $1.77 million loss in 2009–10.[32] Store viability is dependent on several factors including the population size of the local community, remoteness and high operating costs.[33] Whilst 5 stores are currently viable and produce profits for their owners, the Chairman and the CEO both observe that increased efficiency is a key element in transitioning 10 stores currently deemed unviable to an improved financial status they describe as 'barely viable': that is, stores that are able to 'sustain their own operation unless a major expense is incurred'.[34]

2.39      On 4 July 2010, Outback Stores opened a new facility at Ngukurr in conjunction with Ngukurr Progress Aboriginal Corporation and Aboriginals Benefits Account. Sales at the new store increased immediately by an average $30 000 per week.[35]

2.40      The annual report notes that Outback Stores faces some unique challenges including remoteness, harsh climate including floods, and mice plagues.[36] Many new stores received equipment upgrades with capital grants from the Department of Families, Housing, Community Services and Indigenous Affairs for the purchase of open fronted cabinet fridges to display fresh product.[37]

2.41      Outback Stores employed 191 Aboriginal staff in 2010–11 and surpassed its contracted training contact hours target. The NT Department of Education has significantly increased its training commitment for Outback Stores in the next financial year.

Annual reports of Statutory Agencies

The Australian Health Practitioner Regulation Agency

2.42      The Australian Health Practitioner Regulation Agency (AHPRA) was formed following a decision by the Council of Australian Governments to operate a nationally consistent registration and accreditation scheme for ten health professions.[38] AHPRA is chaired by Mr Peter Allen and the Chief Executive Officer is Mr Martin Fletcher.

2.43      AHPRA was established under the Health Practitioner Regulation National Law Act that has been enacted in all states and territories.

2.44      AHPRA is required under Clause 8 to Schedule 3 of the Health Practitioner Regulation National Law Act to prepare and submit an annual report by 31 October to the Ministerial Council. Further:

The Ministerial Council is to make arrangements for the tabling of the annual report of the National Agency, and the report of the public sector auditor with respect to the financial statement in the report, in the Parliament of each participating jurisdiction and the Commonwealth.[39]

2.45      The annual report 2010–11[40] covers the transition and early implementation of the National Scheme.  The annual report provides an explanation of the operations of AHPRA and a well-presented overview of its achievements during the year.

Non-statutory advisory panel

Health and Ageing Portfolio

Advisory Panel on the Marketing in Australia of Infant Formula

2.46      The committee commends the Advisory Panel on the Marketing in Australia of Infant Formula for continuing to produce an annual report to Parliament when there is no legislative requirement for it to do so. 

Senator Claire Moore

Chair

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