Review of annual reports


Review of annual reports

Preface

1.1        Annual reports of departments and agencies are referred to Legislation Committees under Senate Standing Order 25 (21)[1]. The portfolio responsibilities allocated to the Economics Legislation Committee are for the departments and agencies within the Treasury and Industry, Tourism and Resources portfolios. When considering these reports the Committee is required to:

  1. examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;
  2. 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;
  3. investigate and report to the Senate on any lateness in the presentation of annual reports;
  4. in considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;
  5. if the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;
  6. 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;
  7. draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and
  8. 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[2].

Reports presented

1.2        The agencies which tabled annual reports in Parliament in the portfolios referred to the Economics Committee are listed below, and in Appendices 1 and 2. All agencies that were required to present reports have done so unless otherwise noted in the report.

Industry, Tourism and Resources portfolio

  • AusIndustry-Industry, Research and Development Board
  • Australian Tourist Commission
  • Department of Industry, Tourism and Resources
  • National Standards Commission
  • Pooled Development Funds Registration Board
  • Snowy Hydro Limited

Treasury portfolio

  • Australia and the International Financial Institutions
  • Australian Bureau of Statistics
  • Australian Competition and Consumer Commission
  • Australian Office of Financial Management
  • Australian Prudential Regulation Authority
  • Australian Reinsurance Pool Corporation
  • Australian Securities and Investment Commission
  • Australian Statistics Advisory Council
  • Commissioner of Taxation
  • Companies Auditors Liquidators Disciplinary Board
  • Corporations and  Markets Advisory Committee
  • Financial Reporting Council and Australian Accounting Standards Board
  • Foreign Investment Review Board
  • Inspector-General of Taxation
  • National Competition Council
  • Productivity Commission
  • Reserve Bank of Australia
  • Reserve Bank of Australia Equity and Diversity Report
  • Reserve Bank – Payments System Board
  • Superannuation Complaints Tribunal
  • Takeovers Panel
  • Treasury

Requirements

1.3        The information contained in annual reports is an important tool in the process of accountability to Parliament, as it provides ministers and the Parliament with advice about the activities of departments and agencies over the financial year. To fulfil their accountability functions, annual reports are required to meet requirements as contained in:

  • Requirements for Annual Reports, June 2004, produced by the Department of Prime Minister and Cabinet;
  • Commonwealth Authorities and Companies Act 1997;
  • Public Service Act 1999; and
  • Acts Interpretation Act 1901.

1.4        The legislation identifies the types of Commonwealth authorities that are required to table an annual report and establishes the administrative processes and timing for tabling. In addition, the Requirements for Annual Reports June 2004 identifies the elements required to be included in annual reports. This information ensures that agencies' annual reports meet their accountability requirements and offer consistency to readers. The core information required in each annual report is as follows:

  • letter of transmittal;
  • review by the departmental secretary;
  • departmental overview;
  • report on performance;
  • management and accountability;
  • a table of contents and index;
  • financial statements; and
  • glossary of abbreviations and acronyms.

1.5        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[3].

Comments on Reports

1.6        Standing Order 25(21)(a) requires the Committee to examine the annual reports referred and to determine if they are apparently satisfactory. In assessing the annual reports, the Committee noted the timeliness of presentation in addition to the factors contained in the guidelines as noted above.

1.7        The Committee notes that a large number of annual reports had not been tabled by the 31 October timeline. The Committee is mindful that a likely reason for the tardiness of tabling reports may be due to the 2004 federal election. However the Committee brings to the attention of all departments and agencies the provision of presenting documents to the President of the Senate when Parliament is not in session. Documents presented in this manner under Standing Order 166 are deemed to be 'tabled out of session' on the date on which they are presented to the President. Appendices 1 and 2 indicates the dates on which departments and agencies had reported.

1.8        Additionally, a small number of reports failed to meet some of the basic requirements. These omissions included:

  • failure to include a letter of transmittal (Australian Securities and Investments Commission, Reserve Bank of Australia, Reserve Bank of Australia – Equity and Diversity, Reserve Bank of Australia – Payments System Board, and Snowy Hydro Limited).
  • failure to identify the legislation under which the report is presented (Reserve Bank of Australia, and Reserve Bank of Australia – Payments System Board).
  • failure to provide a foreword summary overview by the departmental secretary or agency head (Companies Auditors and Liquidators Disciplinary Board, Corporations and Markets Advisory Committee, Productivity Commission, and Reserve Bank of Australia – Payments System Board).
  • failure by some agencies to supply an Internet homepage web address and/or an Internet address for their annual report.

These agencies should ensure that future annual reports include these details.

1.9        Otherwise, the Committee considers the tabled reports 'apparently satisfactory' within the meaning of Standing Order 25(21)(a).

Australian Taxation Office – Taxation (Interest on Overpayments and Early Payments) Act 1983 and Commonwealth Places Windfall Tax (Collection) Act 1998 - Failure to present reports

1.10      The Committee further notes the two cases it had identified in the first report on annual reports 2004 where the Australian Taxation Office had failed to report on legislation it administers. The legislation, Taxation (Interest on Overpayments and Early Payments) Act 1983 and Commonwealth Places Windfall Tax (Collection) Act 1998 both require annual reporting to the Parliament.[4]

Australian Technology Group Limited – Change in reporting

1.11      In past years the Australian Technology Group Limited, a government business enterprise, produced a separate annual report within the Industry, Tourism and Resources portfolio. However, the Department of Industry, Tourism and Resources divested its minority interest in the group to the Department of Finance and Administration on 31 March 2004.

Australian Tourist Commission – Final report

1.12      The 2003-04 annual report of the Australian Tourist Commission is the commission's final report. The new Tourism Australia Act 2004 and the Tourism Australia (Repeal and Transitional Provisions) Act 2004, assented to on 23 June 2004, establishes the formation of Tourism Australia and will amalgamate the functions of the Australian Tourism Commission, the Bureau of Tourism Research, the Tourism Forecasting Council, and See Australia into one organisation. Tourism Australia will be responsible for international and domestic tourism, marketing and research.

Australian Reinsurance Pool Corporation and Inspector-General of Taxation – Inaugural reports

1.13      The Committee welcomes the receipt of the first annual reports by the Australian Reinsurance Pool Corporation and the Inspector-General of Taxation and is pleased with the high standard of reporting in accordance with the guidelines set out in the Department of Prime Minister and Cabinet's Requirements for Annual Reports.

Debate on Annual Reports in the Senate

1.14      Under Standing Order 25(21)(d) the Committee is required to consider any remarks made in reference to the annual reports in the Senate chamber.

1.15      No annual reports considered in this report have been the subject of discussion in the Senate.

 

SENATOR GEORGE BRANDIS
Chairman

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