Chapter 1

Overview

1.1 This is the first Senate Community Affairs Legislation Committee (the committee) report on annual reports for 2013. It provides an overview of the committee's examination of annual reports for the 2011–12 financial year tabled by 31 October 2012.[1]

Terms of Reference

1.2 On 29 September 2010, 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;

(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.[2] 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.[3]

1.7 Amendments to the Requirements for Annual Reports applicable for the 2011–12 reporting period are:

Consultancy reporting — recognising the functionality provided by the AusTender database, the requirement to provide details of consultancy contracts let in the reporting year, previously set out in Attachment D to the Requirements, has been omitted.
Carer recognition — a new requirement has been added for public service care agencies to report on compliance with the Carer Recognition Act 2010.
Work health and safety — minor revisions to the existing requirement reflecting the provisions of the Work Health and Safety Act 2011.
Freedom of information — simplification of reporting following accommodation of major reforms to freedom of information reporting in the 2010–11 Requirements.[4]

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.[5]

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 This report considers twenty-nine annual reports received during the period of 1 May 2012 to 31 October 2012. Ten reports have been examined to determine whether or not their contents satisfy the detailed legislative requirements as set out in the CAC Act. Thirteen 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. Four statutory office holders, one statutory body, and one regulatory scheme were assessed. The report from the Coordinator General for Remote Indigenous Services is incorporated into the Department of Families, Housing, Community Services and Indigenous Affairs annual report as appendix K.

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. Reports tabled on or after 1 November 2012 will be considered in the committee's second Report on Annual Reports.

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.

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.

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 deadline 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.

Equal Opportunity for Women in the Workplace Agency report for 2010–11

1.21 In its 2012(2) Report on Annual Reports,[6] the committee noted that the Equal Opportunity for Women in the Workplace Agency (EOWA) 2010–11annual report did not comply with the reporting timeframe. 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 received a letter from EOWA dated 25 October 2012. The letter is included in Appendix 2. The letter explains the reasons for the delayed tabling of the EOWA 2010–11 annual report, and in particular notes that the annual report was originally submitted to the Minister's office within the statutory timeframe on 3 November 2011.

Annual reports for 2011–12

1.22 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, the Tiwi Land Council, the Wreck Bay Aboriginal Community Council, the Indigenous Land Corporation, and the Torres Strait Regional Authority all provided notification that their reports would be delayed.

1.23 The Medical Training Review Panel (MTRP) provides an annual report to the committee each year, in accordance with the requirements of subsection 3GC(4) of the Health Insurance Act 1973. Due to the nature of its report, which is collated from data supplied by universities over the academic calendar year, the Medical Training Review Panel's report is produced on a different cycle to other reports. Nevertheless, the constraint set by section 34C(2) of the Acts Interpretation Act 1901 (explained above) still applies. The committee notes that the Medical Training Review Panel's reports often do not appear to meet this constraint. The Government may wish to consider amending subsection 3GC(4) of the Health Insurance Act 1973 to establish a realistic and workable reporting cycle for the Medical Training Review Panel.

1.24 On 3 October 2012 the Tiwi Land Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs requesting an extension until 30 October 2012. The request by the Tiwi Land Council and the Minister's response were tabled on 30 October 2012. On 28 October, the Tiwi Land Council sought a further extension until 14 December 2012. The Minister granted both extensions. The second request by the Tiwi Land Council and the Minister's response were tabled on 19 November 2012. The Tiwi Land Council report was received on 13 December 2012 and tabled on 5 February 2013.

1.25 On 16 October 2012 the Indigenous Land Corporation requested an extension until 15 November 2012. The Minister granted the extension. The request by the Indigenous Land Corporation and the Minister's response were tabled on 19 November 2012. The Indigenous Land Corporation report was received on 14 November and tabled in the Senate on 19 November 2012.

1.26 On 22 October 2012 the Torres Strait Regional Authority requested an extension until 15 November 2012. The Minister granted the extension. The request by the Torres Strait Regional Authority and the Minister's response were tabled on 19 November 2012. The Torres Strait Regional Authority report was received on 14 November and tabled in the Senate on 19 November 2012.

1.27 On 2 October 2012 the Wreck Bay Aboriginal Community Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs requesting an extension until 30 November 2012. The Minister granted the extension. The Wreck Bay Aboriginal Community Council request and the Minister's response were tabled on 29 October 2012. On 15 November the Wreck Bay Aboriginal Community Council sought a further extension until 31 January 2013. The Minister granted the extension. The request by the Wreck Bay Aboriginal Community Council and the Minister's response were tabled on 5 February 2013. On 16 January 2013 the Wreck Bay Aboriginal Community Council sought a further extension until 31 March 2013. The Minister granted the extension, but noted that she had asked her Department to 'work with the Wreck Bay Aboriginal Community Council to help ensure that the next annual report is finalised in a more timely manner'.[7] The request by the Wreck Bay Aboriginal Community Council and the Minister's response were tabled on 7 February 2013.

1.28 On 9 October 2012 the Northern Land Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs requesting an extension until 30 November 2012. The Minister granted the extension. The request by the Northern Land Council and the Minister's response were tabled on 30 October 2012. On 22 November 2012 the Northern Land Council sought a further extension until 15 February 2013. The Minister granted the extension. The request by the Northern Land Council and the Minister's response were tabled on 5 February 2013.

1.29 On 11 October 2012 the Anindilyakwa Land Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs requesting an extension until 14 December 2012. The Minister granted the extension. The request by the Anindilyakwa Land Council and the Minister's responses were tabled on 30 October 2012.

1.30 As of 8 March 2013, the committee notes that neither the Northern Land Council or the Anindilyakwa Land Council have submitted their annual reports. It appears that these agencies have failed to submit their reports within a period covered by any extension granted by the Minister and tabled in Parliament. The timely provision of reports appears to be an ongoing issue for the Northern Land Council and the Anindilyakwa Land Council. The committee notes that it has previously identified issues of delays in relation to these agencies in its 2012(2) Report on Annual Reports.[8]

Compliance with best practice

1.31 The committee commends the following bodies for complying with best practice and tabling their annual reports prior to the Community Affairs supplementary budget estimates that commenced on 17 October 2012:

Department of Families, Housing, Community Services and Indigenous Affairs;
Department of Health and Ageing;
Department of Human Services;
Australian Hearing; and
Australian Organ and Tissue Donation and Transplantation Authority.

Publishing standards for the Presentation of Documents to Parliament

1.32 The Department of Prime Minister and Cabinet has produced Guidelines for the Presentation of Documents to the Parliament. 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 is pleased to report that, following on from the Report on Annual Reports 2012(2), General Practice Education and Training Limited, and Health Workforce Australia have complied with these guidelines.

Compliance Index

1.33 The committee is pleased to note that in line with new reporting requirements, all annual reports considered for this report included a compliance index.

Letter of transmittal—Aged Care Standards and Accreditation Agency Ltd

1.34 The committee notes that the annual report from the Aged Care Standards and Accreditation Agency Ltd did not have a Letter of Transmittal to the Minister containing a statement that the annual report was prepared in accordance with subsection 36(1) of the CAC Act and was approved by a resolution of the directors. The committee request that the Aged Care Standards and Accreditation Agency Ltd include a Letter of Transmittal in their future annual reports.

Comments made in the Senate

1.35 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. The committee is not aware of any comments made in the Senate regarding the annual reports of departments and agencies within its purview.

Bodies not presenting annual reports to the Senate

1.36 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. In its 2012 (No. 2) report, the committee recommended that the Commonwealth government consider whether an annual report of the National E-Health Transition Authority (NEHTA) should be presented to the Parliament. The committee is not aware of any government response to this recommendation.

Additional Reports

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 July 2012 and 28 February 2013. 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 Radiation and Nuclear Safety Agency — Quarterly report for the period 1 April to 30 June 2012 (tabled in the Senate 21/08/2012)
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 January to 31 March 2012 (tabled in the Senate 14/08/2012)
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 Radiation and Nuclear Safety Agency — Quarterly report for the period 1 July to 30 September 2012 (tabled in the Senate 28/11/2012)
Department of Health and Ageing — Report to Parliament on the second 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 — September 2011 (tabled in the Senate 12/09/2012)
Department of Health and Ageing — Independent review of the impact of Pharmaceutical Benefits Scheme (PBS) cost recovery — November 2011 — Section 99 YBC of the National Health Act 1953 (tabled in the Senate 19/09/2012)
Department of Health and Ageing — Corrigendum — National Health and Medical Research Council — Implementing the 2010–12 NHMRC Strategic Plan — Section 17 of the National Health and Medical Research Council Act 1992 (tabled in the Senate 31/10/2012)
Department of Health and Ageing — Personally Controlled Electronic Health Records — System Operator activities — Annual Report for 2011-12 under section 107 of the Personally Controlled Electronic Health Records Act 2012 (tabled in the Senate 30/10/2012)
Department of Health and Ageing — Report for 2011–12 on the Operation of the Aged Care Act 1997 (tabled in the Senate 28/11/2012)
Department of Human Services — Healthcare Identifiers — Service Operator activities — Annual Report for 2011-12 under section 34 of the Healthcare Identifiers Act 2010 (tabled in the Senate 30/10/2012)
KPMG — Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Act (No. 2 ) 2008 — Report on the operation of the Act — Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals — Third year review, Final report, 2012 (tabled in the Senate 10 September 2012)
Office of the Australian Information Commissioner — Healthcare Identifiers — Compliance and enforcement activities — Annual Report for 2011-12 under section 30 of the Healthcare Identifiers Act 2010 (tabled in the Senate 30/10/2012)
Office of the Australian Information Commissioner — Personally Controlled Electronic Health Records — Compliance and enforcement activities — Annual Report for 2011-12 under section 106 of the Personally Controlled Electronic Health Records Act 2012 (tabled in the Senate 30/10/2012)
Office of the Gene Technology Regulator — Quarterly report for 1 April to 30 June 2012 (tabled in the Senate 14/09/2012)
The Treasury — Final Budget Outcome 2011-12 — Report by the Treasurer (The Hon Wayne Swan MP) and the Minister for Finance and Deregulation (Senator the Hon Penny Wong) (tabled in the Senate 28/09/2012)
The Treasury — Mid-Year Economic and Fiscal Outlook 2012-13 — Statement by the Treasurer (The Hon Wayne Swan MP) and the Minister for Finance and Deregulation (Senator the Hon Penny Wong) (tabled in the Senate 30/10/2012)
The Treasury — Tax Expenditure Statement 2012 — In accordance with procedural order no. 7 of continuing effect (tabled in the Senate 05/02/2013)
Indigenous Australians — Closing the Gap — Ministerial Statement by the Prime Minister (The Hon Ms Gillard), dated 6 February 2013 (tabled in the Senate 7/02/2013)
Closing the Gap: Prime Minister's Report 2013 (tabled in the Senate 7/02/2013)
Department of Finance and Deregulation — Consolidated financial statements for the year ended 30 June 2012 (tabled in the Senate 5/02/2013)
Department of Finance and Deregulation — Advances provided under the annual Appropriation Acts — Report for 2011–12 (tabled in the Senate 5/02/2013)
Office of the Gene Technology Regulator — Quarterly Report for the period 1 July to 30 September 2012 (tabled in the Senate 5/02/2013)
National Health and Medical Research Council (NHMRC) — NHMRC Licensing Committee — Report on the operation of the Research Involving Human Embryos Act 2002 for the period 1 March to 31 August 2012 (tabled in the Senate 5/02/2013)
National Health and Medical Research Council (NHMRC) — Strategic plan 2013 to 2015 (tabled in the Senate 5/02/2013)
Sphere Company — Independent Review of the National Health Performance Authority, dated November 2012 (tabled in the Senate 5/02/2013)
Private Health Insurance Administration Council — Report for 2011–12 on the operations of private health insurers (tabled in the Senate 5/02/2013)

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