1.1
The Community Affairs Legislation Committee (committee) is responsible for examining the annual reports of departments and agencies of the Health portfolio and the Social Services portfolio, including Services Australia (previously the Department of Human Services).
1.2
This report on annual reports (No. 1 of 2021) provides an overview of the committee's examination of annual reports presented to the Parliament between 1 May 2020 and 31 October 2020.
Terms of reference
1.3
Under Senate Standing Order 25(20), the annual reports of certain departments and agencies stand referred to committees for examination and assessment. Each committee is required to:
(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.
Annual reporting requirements and purpose
1.4
Annual reports are key documents under the Australian Government's performance framework for Commonwealth departments and agencies, established under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In reporting on their operations to the Parliament, Commonwealth entities are also reporting to the Australian public.
Requirements
1.5
The PGPA Act establishes a performance reporting framework for all Commonwealth entities and companies. Section 38 of the PGPA Act requires all Commonwealth entities to measure and assess their performance.
1.6
Annual reporting requirements of Commonwealth entities and companies are specified in the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).
1.7
Guidelines for the production of annual reports are produced by the Department of Finance. The Resource Management Guides provide detailed information on the reporting obligations for the different types of Commonwealth entities: non-corporate Commonwealth entities; corporate Commonwealth entities; and Commonwealth companies.
1.8
In summary, annual reports of Commonwealth entities and companies should:
meet the requirements of the PGPA Act and the PGPA Rule;
be in accordance with the reporting requirements of primary legislation; and
be compliant with guidelines relevant to the production of annual reports.
1.9
The Senate refers annual reports to the committee for examination and report with respect to an 'apparently satisfactory' standard.
1.10
The committee generally considers an annual report to be apparently satisfactory when the report is presented in accordance with relevant legislation and Australian Government guidelines, and presents information in a logical way that allows for a clear read between the entity's PBS, corporate plan and its annual report.
Purpose
1.11
Information on the performance of Commonwealth entities provided in annual reports supports the accountability of Australia's executive government and the transparency in the allocation of public resources. The publication of annual reports is a principal opportunity for Commonwealth entities, companies, and executive governments to present information to Parliament and the general public.
1.12
The committee considers its examination of annual reports as important to ensuring that annual reports include the relevant information for public accountability. Together with Portfolio Budget Statements, Portfolio Additional Estimates Statements and the estimates process, annual reports are a primary mechanism by which the Senate is able scrutinise the operations of executive government.
Allocated portfolios and functions
1.13
As noted, the committee is allocated portfolio oversight of the Health portfolio and Social Services portfolio, including Services Australia.
1.14
The lead entities within the portfolios are the Department of Health, Department of Social Services and Services Australia. Information on the range of Commonwealth entities and companies within the committee's portfolio allocation is available on the Department of Finance website.
Reports referred to the committee
1.15
Under Standing Order 25(20)(f), the committee is required to report on the annual reports of departments and agencies tabled by 31 October each year by the tenth sitting day of the following year. This year that date is 24 February 2021.
Reports examined
1.16
This report considers the annual reports of each portfolio department as well as selected other Commonwealth entities within the committee's portfolio oversight that were presented to Parliament between 1 May 2020 and 31 October 2020.
1.17
A list of the annual reports of Commonwealth entities and companies referred to the committee for examination, including the relevant tabling dates, can be found at Appendix 1. A list of other documents referred to the committee is at Appendix 2.
Timeliness
1.18
Standing Order 25(20)(c) requires the committee to report to the Senate on the late presentation of annual reports.
1.19
Commonwealth entities and companies are required to present annual reports to the responsible minister, in accordance with the timeframes set out in relevant legislation. The minister is then required to table the annual report in Parliament. The committee considers that where Senate Estimates hearings are scheduled to occur prior to 31 October, it is best practice for annual reports to be tabled prior to those hearings.
1.20
The committee notes that the Department of Health's annual report 2019-20 was tabled on 1 December 2020. Pursuant to the Acts Interpretation Act 1901, the Secretary, Dr Murphy sought an extension from the Minister in a letter, dated 10 August 2020. The Minister agreed to the extension in a letter, dated 23 October 2020. The letters and statement were tabled in the Senate on 9 November 2020.
1.21
The committee understands the considerable impact COVID-19 had on the department as it focused staff and resources on responding to the pandemic. In considering this, the committee agreed to still include the Department of Health's report in this consideration of annual reports (see Chapter 2).
1.22
All other entities presented annual reports for 2019-20 to Parliament in a timely manner, by 31 October 2020. The committee notes that some annual reports, although tabled on time, were not available prior to the 2020–21 Budget Estimates hearings on 26-29 October 2020. The committee commends those entities whose annual reports were presented to the Parliament prior to the estimates hearings.
Senate Debate
1.23
In accordance with Standing Order 25(20)(d) the committee is required to take into account any relevant remarks about the reports made during debate in the Senate. The committee notes that none of the annual reports examined in this report have been the subject of comment or debate in the Senate.
Non-reporting bodies
1.24
Standing order 25(20)(h) requires that the committee inquire into, and report on any bodies which do not present annual reports to the Senate but should present such reports.
1.25
The committee makes no recommendations for any bodies not presenting an annual report to do so.
Apparently satisfactory
1.26
Standing Order 25(20)(a) requires that the committee report to the Senate on whether the annual reports of departments and agencies in its portfolios are 'apparently satisfactory'. In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.
1.27
The committee has examined all annual reports referred under the Health portfolio and Social Services portfolio, including Services Australia, during the reporting period and considers that they are apparently satisfactory.
Report structure
1.28
This report is structured in three chapters, as follows:
Chapter 2—examination of annual reports of lead portfolio departments; and
Chapter 3—examination of annual reports of certain Commonwealth entities.