Chapter 2
Individual 2011–2012 Annual Reports
Reports under the Industry, Innovation, Science, Research and Tertiary
Education portfolio
Australian Institute of Aboriginal
and Torres Strait Islander Studies – annual report 2011–12
Reporting requirements
1.2
The committee considers that AIATSIS has met its reporting requirements
under the CAC Act.
1.3
Although the sections of the report referring to contracts and
consultancies contain information on the value of contracts,[1]
they should specify which consultancies were ongoing as opposed to which were
new.
1.4
The committee acknowledges that AIATSIS has implemented the recommendation
from the committee's report Annual reports (No. 1) 2012 regarding the
details required to be included in the letter of transmittal.
Operational matters
1.5
The report states that AIATSIS' utmost priority is the need to address
its long term funding situation. Its research grants program was suspended this
year, and there is uncertainty over the future financial capacity of the
Institute to manage and preserve its collections. The Institute was confronted
with a budgetary challenge when government funding for its archival
digitalisation program ended in June 2011. This year AIATSIS recorded an
operating loss of $3.2 million, agreed to by the Minister for Finance and
Deregulation. The loss, together with a two-year government investment and the
exemption from the efficiency dividend enabled the Institute to maintain
employment for over 30 of its staff. A new enterprise agreement came into
effect in May 2012.
Australian Institute of Marine
Science – annual report 2011–12
Reporting requirements
1.6
The committee considers that AIMS has met its reporting requirements
under the CAC Act.
1.7
The report identifies the principles and reasons for engaging
consultants, but does not show expenditure on consultancy services.[2]
Operational matters
1.8
The core capabilities of AIMS as a tropical marine research agency are
climate change, biodiversity, water quality and marine microbiology, in which
the Institute holds a strong publication record – in 2011 it published a record
177 journal articles.
1.9
The report states that a major risk currently facing AIMS is a serious
shortfall in base funding, as outside costs are rising at a faster rate than
the increase in revenue resulting from indexation.
1.10
As of November 2011, AIMS has a new CEO, Mr John Gunn.
Australian Nuclear Science and
Technology Organisation – annual report 2011–12
Reporting requirements
1.11
The committee considers that ANSTO has met its reporting requirements
under the Acts.
1.12
The annual report does not mention ANSTO's appearance at Senate
estimates or the regular examination of its annual report by this committee in
the section on reviews by outside bodies[3].
This information would be a useful addition to the report
for the purpose of external scrutiny and accountability.
1.13
The report contains information on indemnities and insurance premiums
for employees, but does not state the value of the premiums.[4]
Operational matters
1.14
ANSTO contributes to ongoing nuclear and national security, including
counter-terrorism preparedness. It also contributes to national food security –
this year it looked at the use of irradiation as a chemical-free alternative to
pesticides.
1.15
ANSTO has taken initial steps towards delivering on the vision outlined
in its 2055 Infrastructure Plan, with the view of transforming its Lucas
Heights waste storage campus to make it more accessible to the public. It also
opened a national imaging facility and a facility for the measurement of
environmental radioactivity.
1.16
ANSTO reported the strong financial performance of its commercial groups
for this year.
Australian Research Council –
annual report 2011–12
Reporting requirements
1.17
The committee considers that the ARC has met its reporting requirements
under the Acts.
1.18
The committee notes that deliverables and key performance indicators
(KPIs) for all three ARC programs were revised in 2011–12.[5]
One KPI for the Linkage program was not met. The report does not contain a
statement on whether the ARC has historically met each of its KPIs.
1.19
The report includes a correction of errors to the previous two annual
reports.[6]
Operational matters
1.20
Amongst other activities, the ARC administers one grant program, the
National Competitive Grants Program (NCGP). Two new funding initiatives were
developed under NCGP this year: the Special Research Initiative in Synchrotron
Science and the Special Research Initiative for an Aboriginal and Torres Strait
Islander Researchers’ Network. This year the ARC received 28 appeals in
relation to NCGP proposals, of which five research misconduct allegations were
upheld. The ARC identified the increasingly large number of proposals submitted
for funding under the NCGP as a key challenge in this reporting year.
1.21
The ARC released a new strategic plan in 2011–12, and completed a review
of their risk-management framework. It also finalised a new enterprise
agreement.
1.22
There is a reference to two ANAO audit reports which found that:
...in the period under consideration the ARC had more than 20
instances of grant program guidelines for which there was no evidence of the
required approval (by the Expenditure Review Committee) being obtained prior to
their release.
And that:
...the ARC had not met the requirements of the Commonwealth
Grant Guidelines with regard to posting of grants information on its website.[7]
1.23
In relation to the above, the ARC stated that it ‘has subsequently
implemented processes to ensure that it complies with both these requirements’.
1.24
The ARC recorded an operating deficit of $0.386 million for this year 'due
to the removal of depreciation funding as part of Operation Sunlight net cash
appropriations framework.'[8]
1.25
As noted in Chapter 1, this annual report was subject to some comments
made by Senator Bridget McKenzie in the Senate on 10 October 2012.
Australian Skills Quality Authority
– annual report 2011–12
Reporting requirements
1.26
The committee considers that ASQA has met its reporting requirements
under the Acts.
1.27
ASQA noted that it would develop service standards once it completes its
establishment phase and is able to accurately measure the timeframes for
various regulatory tasks. The report also noted that ASQA is unable to provide
reporting on ecologically sustainable development for this year, as not all of
its offices were open for the 12 month reporting period.
Operational matters
1.28
ASQA commenced operations on 1 July 2011 as a body set up to provide
national consistency in the regulation of vocational education and training. It
has an audit and monitoring regime and the power to apply sanctions. This reporting
year ASQA undertook 420 course accreditation activities, with 92 per cent
completed within the reporting period. It received a total of 4873 applications
in relation to registration, of which 611 were transferred from regulators in
NSW, Victoria, Western Australia, the ACT and Northern Territory on its first
day of operation. ASQA signed MoUs with state and territory government agencies
for the purpose of their referral of powers to ASQA.
1.29
This year it suspended the registration of 22 providers, and
communicated with providers to assist them with the transition. It assessed the
registration and reregistration of courses on the Commonwealth Register of
Institutions and Courses for Overseas Students (CRICOS) and established a
regulator-provider forum with English Australia which considers issues relating
to the regulation of providers delivering to overseas students. ASQA removed
the requirement for applicants to submit a course concept proposal from 1 July
2012. It commenced planning for targeted regulatory activity focused on the aged
care training sector in 2012–13.
1.30
ASQA had an operating surplus of $5.9 million (22 per cent of
departmental revenue). It received an award for the functionality of its
website.
Commonwealth Scientific and
Industrial Research Organisation [includes Science and Industry Endowment Fund]
– annual report 2011–12
Reporting requirements
1.31
The committee considers that CSIRO has met its reporting requirements
under the Acts.
1.32
The compliance index does not include a reference to page numbers to
identify where relevant information can be found in the report. This should be
rectified in future reports.
1.33
The report does not contain a reference to the organisation’s ethics
policy, which is a requirement under the CAC Act.
1.34
The annual report does not mention CSIRO's appearance at Senate
estimates or the regular examination of its annual report by this committee in
the section on reviews by outside bodies. This information would be a useful
addition to the report for the purpose of external scrutiny and accountability.
Operational matters
1.35
In 2012 it was announced that the $2.5 billion SKA radio telescope would
be deployed in Australia, New Zealand and South Africa, making it the world’s
largest radio telescope. Australia’s SKA Pathfinder is on track to be
operational next year, as is the Pawsey Supercomputer.
1.36
CSIRO released the State of the Climate 2012 report, which provides
observations of Australia’s climate and an analysis of contributing climactic
factors.
1.37
CSIRO reported a surplus for 2011-12 of $200.5 million, largely
attributable to the WLAN licensing agreements. The CSIRO wireless local area
network (WLAN) team won the European Patent Office Non-European Inventor Award
for 2012.
Department of Industry, Innovation,
Science, Research and Tertiary Education [includes IP Australia] – annual
report 2011–12
Reporting requirements
1.38
The committee considers that the Department and IP Australia have met
their reporting requirements under the Acts.
1.39
For future annual reports, the committee proposes the introduction of a
snapshot of key achievements and highlights in the reporting year.
1.40
The committee suggests that the Department make a reference to its
annual report being scrutinised by this committee in future annual reports, to
be incorporated in the section on external scrutiny.
1.41
The Department's report includes corrections to the previous annual
report.[9]
Operational matters
1.42
The changes in the machinery of government announced on 12 December 2011
transferred the tertiary education and skills functions from the Department of
Education, Employment and Workplace Relations to the former Department of
Innovation, Industry, Science and Research (DIISR), which presented the
Department with a series of adjustments in logistical and human resources
areas.
1.43
The Department received an unqualified audit report on its financial
statements. However, the ANAO report noted:
Note 28 Compliance with Statutory Conditions for Payments
from the Consolidated Revenue Fund discloses information on the Department
of Industry, Innovation, Science, Research and Tertiary Education's review of
its exposure to risks of not complying with statutory conditions on payments
from special appropriations and special accounts. Non-compliance with statutory
conditions may lead to a contravention of section 83 of the Constitution,
which requires that no money shall be drawn from the Treasury of the
Commonwealth except under an appropriation made by law.
As disclosed in Note 28, debts raised totalling $43,272,172
under the Social Security (Administration) Act 1999 have been identified
in 2011-12 as potential breaches of section 83 of the Constitution.[10]
Skills Australia– annual report
2011–12
Reporting requirements
1.44
The committee considers that Skills Australia has met its reporting
requirements under the Act.
1.45
The letter of transmittal lacks a full date. The letter should be dated
in full, on the day the signatory approves the final text of the report for
printing.
1.46
The annual report contains no reference to the agency's appearance at
Senate estimates or this committee’s reviews of the agency’s annual reports.
This information could be added to future annual reports for the purpose of
external scrutiny and accountability. The report does, however, refer to
submissions made to parliamentary inquiries, including one conducted by this
committee.
Operational matters
1.47
Skills Australia transitioned to Australian Workforce and Productivity
Agency (AWPA) on 1 July 2012, which makes this its last annual report presented
under the former name, and the first one to include the work of AWPA. One of
the key roles under its expanded array of functions is to administer a new
National Workforce Development Fund to train current and prospective workers in
cooperation with businesses.
Tertiary Education Quality and
Standards Agency– annual report 2011–12
Reporting requirements
1.48
The committee considers that TEQSA has met its reporting requirements
under the Acts.
1.49
The committee considers that allowances for some aspects of this year's
reporting need to be made as the agency is new. In what is its first annual
report, TEQSA noted that it will implement a client service charter, and do
further work on the website in 2012–13. Likewise, actual performance against
KPIs will become more evident as the work of the agency progresses. The agency
was unable to provide numeric data on its environmental performance for this
year due to its relocation and shared leasing arrangements with other agencies
at its previous location.
1.50
The annual report does not mention TEQSA's appearance at Senate
estimates. This information would be a useful addition to the report for the
purpose of external scrutiny and accountability.
Operational matters
1.51
This was TEQSA's first year of operations as Australia's first national
regulator of the higher education sector. It commenced in a quality assurance
capacity on 29 July 2011 before assuming full regulatory functions on 29
January 2012.
1.52
Among other achievements, TEQSA released the National Register of Higher
Education Providers; and its Regulatory Risk Framework; and negotiated the
transition of business from state and territory governments.
Reports under the Resources, Energy and Tourism portfolio
Australian Solar Institute – annual
report 2011–12
Reporting requirements
1.53
The committee considers that the ASI has met its reporting requirements
under the Acts.
1.54
The section of the report relating to external scrutiny and the reports
issued on the operations of the ASI does not mention the ASI's appearance at
Senate estimates or its annual report being reviewed by this committee.[11]
1.55
This was the last annual report of the ASI.
Operational matters
1.56
This was the second full financial year of operations for the company,
during which it invested in innovative solar research and development, skills
and capacity building across the solar industry.
1.57
In June 2011, the government announced that the ASI would be merged into
a new and larger government-owned organisation, the Australian Renewable Energy
Agency (ARENA). The transition of ASI to ARENA was to be completed by
1 January 2013, and the ASI would be deregistered by 30 June 2013. The ASI
programs would be preserved under the larger umbrella of the new agency. The
ASI's activities in this year focused on implementing a smooth transition of
its operations into ARENA.
1.58
The ASI recorded an operating surplus of over $23 million for this year.
Department of Resources, Energy and
Tourism [includes Geoscience Australia] – annual report 2011–12
Reporting requirements
1.59
The committee considers that DRET and Geoscience Australia have met
their reporting requirements under the Acts.
1.60
The two glossaries in the report are actually only lists of
abbreviations and should therefore either be renamed or expanded to include
definitions of any specific terminology used.[12]
1.61
The committee suggests that the Department and Geoscience Australia add a reference to their annual reports being scrutinised by this committee in
future annual reports, to be incorporated in the section on external scrutiny.
1.62
The section of the report referring to the Department’s service charter
does not include complaints data.[13]
Operational matters
1.63
Two new units within the Department were established and commenced
operations on 1 July 2011: the Office of Spatial Policy (OSP) and the Bureau of
Resources and Energy Economics (BREE). The committee also notes a changed
program structure for the Department.[14]
1.64
The government released its report of the Strategic review of Geoscience
Australia in May 2011, in which it made 11 recommendations that Geoscience
Australia worked to address during the year. This included undertaking a review
of the current policy and legislative arrangements for the release of offshore
acreage, preparing a funding submission and a new strategic plan, reviewing the
KPI framework, and establishing the Office of Spatial Policy.
National Offshore Petroleum Safety
and Environmental Management Authority – annual report 2011–12
Reporting requirements
1.65
The committee considers that NOPSEMA has met its reporting requirements
under the Acts.
1.66
NOPSEMA's report also comprises the annual report of the NOPSEMA
Advisory Board.
Operational matters
1.67
NOPSEMA is an independent national regulator of health and safety, well
integrity and environmental management in Commonwealth waters and designated
coastal waters where a state/territory has conferred its regulatory functions.
1.68
The agency went through substantive legislative regime changes during
the reporting period and transitioned from NOPSA to NOPSEMA on 1 January 2012.
The restructure incorporated the regulatory and business functions of the former
NOPSA, in addition to new functions and responsibilities for environmental
management regulation. There was a transfer of responsibility for regulatory
oversight of environment plans and oil spill contingency plans from the
previous state and territory designated authorities to NOPSEMA.
1.69
NOPSEMA delivered its target of 31 topic-based safety inspections across
a range of facilities this year. There were 79 environmental management
incidents reported to NOPSEMA during the reporting period. Well levies were
collected for the first time, and an environment plan levy was introduced from
1 January 2012 to enable NOPSEMA to fund its new function of environmental
management through cost recovery. NOPSEMA also commenced work on a
comprehensive stakeholder relations framework.
1.70
NOPSEMA reported one serious OHS incident, and one worker's compensation
claim for this financial year, but noted that there was a downward trend in
injury frequency, with no work-related fatalities reported.
Tourism Australia – annual report 2011–12
Reporting requirements
1.71
The committee considers that Tourism Australia has partially met its
reporting requirements under the Acts.
1.72
The report contains a PM&C list of requirements, but not a CAC Act
compliance index, which differs from the PM&C index.
1.73
The letter of transmittal should include details of when and how the
report was adopted, and state that directors are responsible for the
preparation of contents of the report, as prescribed by the Commonwealth
Authorities (Annual Reporting) Orders 2011.
1.74
The report does not contain a reference to any ministerial directions,
which is a requirement under the Commonwealth Authorities (Annual Reporting)
Orders.
1.75
The section on contracts and consultancies refers to ongoing contracts
and their value, but does not specify whether there were any new contracts.[15]
1.76
The report should contain information on staffing and remuneration
levels.
1.77
The report should contain a reference to the agency's ethics policy.
Operational matters
1.78
This year Tourism Australia focused on improving information and
standards by promoting the T-QUAL accreditation program. It launched a There's
nothing like Australia for Business Events global marketing campaign and
website. Tourism Australia also unveiled its India 2020 strategic plan to
secure a greater share of this growing market.
Reports under the Treasury portfolio
Auditing and Assurance Standards
Board – annual report 2011–12
Reporting requirements
1.79
The committee considers that the AUASB has broadly met its reporting
requirements under the Acts. Although the annual report is clearly ordered,
some improvement is needed as to the quality of content. Recommendations set
out in the paragraphs below should be implemented in the production of future
annual reports.
1.80
As prescribed by the ASIC Act, the report also covers the operations of
the Office of the Auditing and Assurance Standards Board, which provides
technical and administrative support and advice to the AUASB.
1.81
The Human Resources management section[16]
should include staff classification levels and salary ranges for each level, as
per PM&C requirements which AUASB is to follow as an agency under the FMA
Act.
1.82
It would be desirable for the part of the report referring to external
scrutiny[17]
to note that AUASB annual reports are scrutinised by the Senate Economics
Legislation Committee and the Parliamentary Joint Committee on Corporations and
Financial Services.
1.83
The section on disability reporting should include a full statement
covering information on the new National Disability Strategy, as per PM&C
guidelines.[18]
1.84
The section on environmental performance[19]
should include more information, for example how the agency's activities
accorded with principles of ecologically sustainable development, and what
measures were taken or are being taken to minimise impact on the environment.
1.85
A glossary explaining specific terms, such as 'comfort letter
engagements',[20]
which may not be familiar to readers, would be a useful addition to the report.
Operational matters
1.86
As a member of the International Auditing and Assurance Standards Board
(IAASB), this financial year the AUASB participated in IAASB task forces with
the aim of forming a single set of global auditing standards; worked with its
New Zealand counterpart to better harmonise Australian and New Zealand auditing
standards; and issued new standards and guidance to address specific local
industry and regulatory requirements.
1.87
This annual report is also subject to review by the Parliamentary Joint
Committee on Corporations and Financial Services (PJC) in its report on Annual
reports.
Australian Accounting Standards
Board – annual report 2011–12
Reporting requirements
1.88
The committee considers that the AASB has broadly met its reporting
requirements under the Acts. The report is very similar to that of AUASB in
layout and the structure of content and requires similar amendments.
1.89
As prescribed by the ASIC Act, the report also covers the operations of
the Office of the Australian Accounting Standards Board, which provides
technical and administrative services and advice to the AASB.
1.90
Although the report states that 'salaries and other entitlements of the
technical and administrative employees are linked to relevant industry salary
scales and entitlements',[21]
the ranges of salaries and entitlements should be included in the report.
1.91
The Chairman's review states that 'the funding base of the AASB remains
a concern', but does not offer any further insight or explanations.
1.92
The report lists one exempt contract and the reason for its exemption,
however, it does not state the value of the contract,[22]
which is a PM&C requirement.
1.93
The part of the report referring to external scrutiny[23]
could in future note that AASB annual reports are scrutinised by the Senate
Economics Legislation Committee and the Parliamentary Joint Committee on
Corporations and Financial Services.
1.94
The section on disability reporting should include a full statement
covering information on the new National Disability Strategy, as per PM&C
guidelines.
1.95
The section on environmental performance[24]
should include more information, for example how the agency's activities
accorded with principles of ecologically sustainable development, and what
measures were taken or are being taken to minimise impact on the environment.
Operational matters
1.96
In 2011 the AASB Chairman became the Chair of the Asian-Oceanian
Standard Setters Group. The report details the help provided to the AOSSG in
its establishment as a body set to improve the input of the region to
international accounting standard setting.
1.97
This annual report is also subject to review by the Parliamentary Joint
Committee on Corporations and Financial Services (PJC) in its report on Annual
reports.
Australian Bureau of Statistics –
annual report 2011–12
Reporting requirements
1.98
The committee considers that the ABS has met its reporting requirements under
the Acts.
1.99
The report does not contain a statement on whether the ABS has
historically met each of its KPIs. This should be included in future reports.
1.100
The section on external scrutiny in the annual report contains no
reference to the agency's appearance at Senate estimates or this committee’s
reviews of the agency’s annual reports.[25]
This information could be added to future annual reports for the purpose of
external scrutiny and accountability. Other than this, the committee is
satisfied with the range and quality of information presented in the report.
Operational matters
1.101
The ABS recorded notable success in the five-yearly Census of Population
and Housing for 2011, with the participation rate of over 98%.
1.102
The ABS is engaging in the transformation of statistical information
management and has undertaken an organisational restructure to refine the ways
of data acquisition, to modernise the communication of statistical information
and to better assist other agencies to manage their own information with
statistical potential. The ABS developed a framework to identify the essential
statistical assets regardless of which organisations produce them. Data
integration continues to be a priority for the ABS.
Australian Competition and Consumer
Commission and the Australian Energy Regulator – annual report 2011–12
Reporting requirements
1.103
The committee considers that the ACCC and AER have met their reporting
requirements under the Acts and compliments them on a well-structured report.
1.104
The committee suggests that the ACCC add a reference to its annual
report being scrutinised by this committee, to be incorporated in the section
on external scrutiny.[26]
1.105
It would be preferable to include data on energy performance or any
other numerical data under the section on environmental performance in the
report.[27]
1.106
The annual report includes two corrections to the
2010–11 report.
Operational matters
1.107
This year the ACCC undertook a strategic review of its enforcement and
compliance priorities. It also undertook proceedings against large corporations
such as Apple, Google and Harvey Norman, and worked to ensure competitive
conduct in the supermarket sector. It held inquiries into the retail fuel
market, including what is known as 'shopper docket' discounting for petrol. It
pursued a number of international airlines for cartel conduct relating to the
carriage of air freight.
1.108
AER is part of the ACCC and regulates the national energy market.
Australian Office of Financial
Management – annual report 2011–12
Reporting requirements
1.109
The committee considers that the AOFM has met its reporting requirements
under the Acts.
1.110
The section of the report on ecologically sustainable development (ESD)
states that environmental impact is published in the Treasury’s annual report.
It would be desirable, however, to include in the AOFM report some information
on how its activities accorded with principles of ESD and what measures were
taken to minimise impact on the environment.[28]
1.111
The report does not contain a statement on whether the AOFM has
historically met each of its KPIs.
1.112
The report contains no reference to the agency's appearance at Senate
estimates or this committee’s reviews of AOFM’s annual reports. This
information could be added to future annual reports for the purpose of external
scrutiny and accountability.
Operational matters
1.113
The AOFM is responsible for the management of Australian government
debt, cash balances and investment in financial assets. This financial year a
strong demand for Commonwealth Government Securities (CGS) continued, with CGS
outperforming other Australian dollar denominated debt securities.
1.114
The AOFM recorded an operating surplus on agency activities of $3.14
million, largely due to lower than expected costs of undertaking additional
issuance activity in response to the GFC.
1.115
A review of the operation of the AOFM’s risk and internal control
environment was conducted, and an internal audit plan approved.
Australian Reinsurance Pool
Corporation – annual report 2011–12
Reporting requirements
1.116
The committee considers that the ARPC has met its reporting requirements
under the CAC Act.
1.117
The report doesn't contain a glossary, which would be useful to provide
definitions of specific terminology used, such as 'retrocession' and 'cedant
reviews'.
1.118
As an observation, the reference page for the compliance index in the
index itself is erroneous.[29]
Operational matters
1.119
During the year the Minister issued a new direction to ARPC in respect
of payments to be made by ARPC to the Commonwealth over the next four years.[30].
1.120
The ARPC's aim is to insulate both the economy and the Commonwealth from
the financial effect of a terrorist event. In 2012 the ARPC provided the
Commonwealth with a buffer of $2.76 billion before it would be called upon to
meet a claim.
Australian Securities and
Investments Commission– annual report 2011–12
Reporting requirements
1.121
The committee considers that ASIC has met its reporting requirements
under the Acts.
1.122
The report refers to ANAO recommendations, but does not specify what the
recommendations were.
Operational matters
1.123
This year, amongst its other regulatory activities, ASIC aligned its
corporate structure into three clusters to better reflect their priorities:
Investors and Financial Consumers; Markets; and Registry and Licensing. ASIC
has also established an Emerging Risk Committee to analyse and mitigate
potential risks for markets and consumers. It launched the national Business
Names Register in May 2012 to replace the eight previous state and territory
services.
Australian Statistics Advisory
Council – annual report 2011–12
Reporting requirements
1.124
The committee considers that ASAC has met its reporting requirements
under the ABS Act.
1.125
The report should include an explicit statement noting what advice was
provided to the Minister in the reporting year.
1.126
The section on FOI procedures should include a statement on the new
National Disability Strategy,[31]
as per PM&C guidelines.
Operational matters
1.127
ASAC provides advice to the Minister and the Australian Statistician in
relation to the collection and dissemination of official statistics provided
for public purposes. It supports the activities of the Australian Bureau of
Statistics from which it receives secretariat services. Its operational costs
are met from within the ABS budget.
Australian Taxation Office – annual
report 2011–12
Reporting requirements
1.128
The committee considers that the ATO has met its reporting requirements
under the Acts. The report is comprehensive and informative, and also includes
information on the operations of the Australian Valuation Office, ATO’s only
commercial business line providing independent valuation services to government
organisations.
1.129
The report includes corrections to annual reports from the previous
year.[32]
The corrections are considerable and relate to a number of matters, including
whistleblowing reports, the research and development tax offset, first home
saver accounts, lost and unclaimed superannuation money, and consultancy
services.
Operational matters
1.130
The report relates to the administration of the wide range of laws
entrusted to the ATO, including revenue laws, the Australian Business Register,
and aspects of superannuation. There has been a 10.3% increase in the net tax
collections from the previous year, largely from pay as you go withholding and
company tax. There was a $4.2 billion increase in tax refunds. The ATO noted in
the annual report that the complexity of the income taxation law remains a
concern.
1.131
The ATO undertook a broad range of activities to support the Stronger
Super reform agenda. This year there was a decrease in the number and value of
lost and unclaimed accounts for the first time. Other highlights include the
implementation of a new Progress of return enquiry tool enabling
taxpayers to check on the progress of their tax return online; an enhancement
of the SuperSeeker tool allowing people to see information on their
superannuation accounts and lost superannuation; the implementation of the Compliance
program 2011–12; the publishing of Your Case Matters 2012, showing
data and analysis about tax and superannuation litigation; the launch of a Tax
Practitioner Action Plan 2011–15; the publication of small business
benchmarks in Reporting Correctly; and additional guidelines issued for
taxpayers and their advisers.
1.132
The ATO received 41% more objections and reviews this year, and completed
almost 600,000 audits and reviews resulting in adjustments. Most taxpayer
objections related to income tax assessments. The ATO completed 271 criminal
investigations for serious tax fraud related offences. 24% of 295 allegations
of fraud or serious misconduct by ATO employees were substantiated after
investigation, of which 68% related to unauthorised access to taxpayer records,
a 45% increase from last year.
1.133
The Australian National Audit Office noted the following in their report
on the ATO’s legal and regulatory requirements:
Note 24F Compliance with statutory conditions for payments
from the Consolidated Revenue Fund discloses information on the Australian
Taxation Office's review of its exposure to risks of not complying with
statutory conditions on payments from special appropriation and special
accounts. Non-compliance with statutory conditions may lead to a contravention
of section 83 of The Constitution, which requires that no money shall be
drawn from the Treasury of the Commonwealth except under an appropriation made
by law.
As also disclosed in Note 24F, payments totalling $4.9
million were made in 2011–12 which were not fully supported by section
16 of the Taxation Administration Act 1953, and thus were in breach of
section 83 of the Constitution.[33]
Companies Auditors and Liquidators
Disciplinary Board – annual report 2011–12
Reporting requirements
1.134
The committee considers that CALDB has met its reporting requirements
under the ASIC Act, but suggests that more content be added to future annual reports.
1.135
The report does not have a table of contents. It contains no reference
to work health and safety, or environmental matters. In addition, under the
Freedom of Information section of the report, it should indicate where FOI
requests can be submitted.
1.136
Although the report states that 'Members of the Board are remunerated in
accordance with rates determined by the Commonwealth Remuneration Tribunal',[34]
the information on salary ranges and benefits should be included in the report
for the purpose of transparency and accountability.
Operational matters
1.137
The role of the Board is to consider applications for the cancellation
or suspension of the registration of registered auditors or liquidators under
the provisions of the Corporations Act. At the beginning of the financial year,
there were three extant applications before the Board, two of which were
conduct matters that were later withdrawn. The Board gazetted its decision in the
case of one application, an administrative matter. Only one new application, an
administrative matter, was received in the reporting year.
1.138
The annual report notes the government's discussion paper from December
2011 which suggests that disciplinary matters involving registered liquidators
would be removed from the Board’s jurisdiction.[35]
1.139
This annual report may also be subject to review by the Parliamentary
Joint Committee on Corporations and Financial Services (PJC) in its report on Annual
reports.
Commonwealth Grants Commission –
annual report 2011–12
Reporting requirements
1.140
The committee considers that the agency has partially met its reporting
requirements under the Acts.
1.141
The committee notes that the annual report does not contain a compliance
index, which is a mandatory requirement for this reporting year for agencies
under the FMA Act. Attention should be paid that this is corrected in future annual
reports.
1.142
The report does not include a reference to disability reporting
mechanisms, or a statement noting where agency level information can be found.
1.143
The report does not include a table showing expenditure on consultancy
contracts over the three most recent financial years, which was suggested in
the PM&C requirements. It does, however, include mandatory information for
2011–12.
1.144
The report contains a brief description of the Commission's assets, but
not an assessment of their effectiveness, as suggested in the PM&C
guidelines.
1.145
It is noted that in addition to a number of lump sum bonus payments to
employees, one retention bonus payment of $3000 was made. For the purpose of
transparency, it would be useful to provide more information on the
circumstances, including any reasons for such a payment to be made.
Operational matters
1.146
The Commission's main activity this year was the presentation of the Report
on GST Revenue Sharing Relativities 2012 Update, with recommendations on
how the GST should be shared among the states and territories adopted by the
Treasurer.
Corporations and Markets Advisory
Committee – annual report 2011–12
Reporting requirements
1.147
The committee considers that CAMAC has met its reporting requirements
under the Acts.
1.148
Staff classification levels and salary range could be presented in the
body of the report under the Human Resources Management section, rather than
only in the financial statements.
1.149
It would be advisable for the part of the report referring to external
scrutiny to note that CAMAC annual reports are scrutinised by the Senate
Economics Legislation Committee and the Parliamentary Joint Committee on
Corporations and Financial Services.
Operational matters
1.150
CAMAC undertakes reviews and reports on matters relating to corporations
regulation and financial products, services and markets; and responds to
ministerial requests for advice..
1.151
CAMAC noted that in financial year 2012–13 it would consider proposals
for improving the operation of managed investment provisions in Chapter 5C of
the Corporations Act 2001 in a subsequent review, as these were not
examined in this year's report.
1.152
This annual report is also subject to review by the Parliamentary Joint
Committee on Corporations and Financial Services (PJC) in its report on Annual
reports.
Department of the Treasury – annual
report 2011–12
Reporting requirements
1.153
The committee considers that the Treasury has met its reporting
requirements under the Acts and commends it for a well-structured report.
1.154
The committee suggests that Treasury add a reference to its annual
report being scrutinised by this committee in future annual reports, to be
incorporated in the section on external scrutiny.
Operational matters
1.155
The Treasury received an unqualified audit report on its financial
statements. However, the ANAO noted:
Note 29 Compliance with Statutory Conditions for Payments
from the Consolidated Revenue Fund discloses information on the Department
of Treasury's review of its exposure to risks of not complying with statutory
conditions on payments from special appropriations and special accounts.
Non-compliance with statutory conditions may lead to a contravention of section
83 of the Constitution, which requires that no money shall be drawn from
the Treasury of the Commonwealth except under an appropriation made by law.
As disclosed in Note 29, three groups of payments were made
in 2011-12 potentially in breach of section 83 of the Constitution, totalling
$4,320,123, in respect of which the Department of the Treasury is seeking legal
advice as at the date of this report.[36]
1.156
The committee would like to express its appreciation to the Treasury for
regularly appearing at estimates and contributing to three committee inquiries
in 2011–12, as well as to other parliamentary inquiries.
Financial Reporting Council –
annual report 2011–12
Reporting requirements
1.157
The committee considers that the Council has met its reporting
requirements under the ASIC Act.
1.158
Although the annual report states that FRC expenditures are reported in
Treasury’s annual financial statements,[37]
it would be advisable that the report contain an assessment of success and
financial performance against FRC objectives. For the purpose of transparency
and accountability, it would also be desirable to include the range of the
members’ remuneration.
Operational matters
1.159
The FRC oversees the effectiveness of the financial reporting framework
in Australia, and most notably the accounting and auditing standards setting
processes. This was Ms Lynn Wood’s first year in the role of FRC Chairperson.
Financial Reporting Panel – annual
report 2011–12
Reporting requirements
1.160
The committee considers that the Panel has met its reporting
requirements under the Acts.
1.161
The report contains a compliance index and generally follows the
PM&C requirements. The report gives a very basic overview, explaining that
most information relating to management and financial performance of the Panel
is incorporated in Treasury's annual report.
1.162
The FOI section should contain an Information Publication Scheme
statement. The section notes that one FOI request was received in this
operating year, but does not state whether it was granted.[38]
1.163
Information on external scrutiny[39]
could contain a reference to this committee's examination of the Panel's annual
report.
Operational matters
1.164
The Panel's function is to resolve disputes between ASIC and a company,
disclosing entity or a registered scheme over the application of accounting
standards in its financial reports. The government confirmed the closure of the
FRP due to lower than expected referral rates. Since commencing operation in
2006, the Panel had been referred only five matters. No matters were received
in 2011–12. On 21 June 2012 legislation to effect the closure was
introduced into Parliament. On 23 August 2012, the Corporations Legislation
Amendment (Financial Reporting Panel) Bill 2012 was passed in the Senate. The
legislation disbanded the Financial Reporting Panel by repealing its functions
and powers effective as of 1 October 2012.
Inspector-General of Taxation –
annual report 2011–12
Reporting requirements
1.165
The committee considers that the IGT has broadly met its reporting
requirements under the Acts.
1.166
The report contains a statement on ongoing consultancies, but does not
refer to any new consultancies. If there were no new consultancies in this
year, the report should note this. The section also lacks a statement on
consultancy contracts over the three most recent years.
1.167
The report should note whether the IGT gives performance pay to its
employees, and if so, the number of employees at each level who receive it, the
aggregated amount at each level, and the average bonus payment at each level.
1.168
The section on disability reporting lacks the NDIS statement recommended
for inclusion by the PM&C guidelines.
1.169
The report should note that the IGT appears at estimates and that its
annual report is scrutinised by this committee.
Operational matters
1.170
The IGT's key role is to review systemic tax administration issues and
report to the government. In this reporting year, the IGT conducted a review
into the ATO's approach to alternative dispute resolution, and small and medium
enterprise (SME) active compliance activities. It also conducted a review into
the ATO's large business risk review and audit policies, procedures and
practices.
National Competition Council –
annual report 2011–12
Reporting requirements
1.171
The committee considers that the NCC has met its reporting requirements
under the Acts.
1.172
In the section on external scrutiny, it would be advisable to note that
the NCC annual report is scrutinised by this committee.
Operational matters
1.173
The role of the NCC is to make recommendations concerning access to
infrastructure services under the National Access Regime and recommendations
and decisions under the National Gas Law.
Productivity Commission – annual
report 2011–12
Reporting requirements
1.174
The committee considers that the Productivity Commission has met its
reporting requirements under the Acts.
1.175
The committee would suggest that, rather than readers being advised to
refer to the Commission’s online Enterprise Agreement to view salary ranges by
classification, these details should be included in the body of the report.
Operational matters
1.176
The report opens with an overview of the changes in the economic
structure and its adaptability, with the main factors being the mining boom,
the labour market and a structural change in the services sector.
1.177
The report contains references to the Commission’s inquiry, research,
advisory and other associated activities. Some of the topics that the Commission
looked at include disability care and support, urban water, the retail
industry, the economic regulation of airport services, the impacts and benefits
of COAG reforms, climate change adaptation, electricity network regulation,
default superannuation, and the compulsory licensing of patents.
1.178
The Australian Government Competitive Neutrality Complaints Office
(AGCNCO) as an autonomous office within the Commission received four formal
complaints in 2011–12, one of which was formally investigated.
Reserve Bank of Australia – annual
report 2011–12
Reporting requirements
1.179
The committee considers that the RBA has met its reporting requirements
under the CAC Act.
1.180
The FOI section of the report does not include a reference to the Information
Publication Scheme. This should be included in future annual reports.[40]
Operational matters
1.181
The RBA sponsors Australian and international economic research. One of
its responsibilities is to ensure that there are sufficient high-quality
banknotes in circulation to meet public demand. Demand for banknotes has been
growing strongly in recent years, and the level of counterfeiting declined
substantially from the previous year. A subsidiary of the RBA, Note Printing
Australia, and Securency International Pty Ltd were charged in 2011 with
conspiring to bribe public officials in a number of countries between 1999 and
2004. The Bank noted that it continues to explore divestment of its interest in
Securency.
1.182
In March 2012, the RBA signed a bilateral local currency swap agreement
with the people's Bank of China. As part of this, it opened an office in
Beijing.
1.183
As noted in Chapter 1, this annual report was subject to some comments
made by Senator Mitch Fifield in the Senate on 27 February 2013.
Royal Australian Mint – annual
report 2011–12
Reporting requirements
1.184
The committee considers that the Mint has broadly met its reporting
requirements under the Acts.
1.185
References to the realisation of key performance indicators for
financial year 2011–12 are made throughout the report, except for one KPI where
the success in meeting the targets for timeliness of numismatic orders produced
and delivered is not elaborated on or quantified. In addition, although
performance information includes sufficient references for the current
financial year, there is no statement noting if the agency has historically met
each KPI. PM&C requirements for annual reports suggest that performance
against KPIs over three years be provided.
1.186
The Mint is an agency which has a service charter in place. While the
report contains a general reference to the agency's services, complaints and
responses, it does not contain complaints data.
1.187
The report does not include a table showing expenditure on consultancy
contracts over the three most recent financial years, which was suggested in
the PM&C guidelines. It does, however, include mandatory information for
the financial year being examined.
1.188
The report lists the contracts exempt from AusTender, but does not state
their value, which is a PM&C requirement.
1.189
Information on work health and safety, as well as environmental
reporting is well-presented in this annual report.
Operational matters
1.190
The Mint documented two significant outcomes this year: the successful
implementation of a new circulating coin supply chain model developed with
commercial banks; and "better than expected" revenue from commercial
activities despite the global financial downturn. It achieved an operating
surplus of $6.113 million. Global interest in the Mint's products has seen
international partnerships being developed which enables new target markets
being reached.
1.191
In 2011–12 the Mint supplied four Pacific Island countries with new circulating
coins and had three coin reform programs underway.
1.192
The Mint was a finalist in the Comcare Work Health and Safety Awards,
and received two awards at the 2011 Canberra and Capital Region Tourism Awards.
1.193
The Mint has made efforts to improve efficiency in manufacturing and
capacity with the purchase of new equipment and software. The annual report
states that consolidating the growth achieved in this financial year is a strategic
focus in 2012–13, together with addressing system and process issues that lead
to waste and inefficiency; and developing new products.
Superannuation Complaints Tribunal
– annual report 2011–12
1.194
The committee considers that the Tribunal has met its reporting
requirements under the Superannuation (Resolution of Complaints) Act 1993,
and commends it for including a PM&C compliance index even though it is not
bound to observe PM&C requirements.
1.195
The part referring to external scrutiny could state that this committee
examines and reports on the Tribunal's annual report.
1.196
Employees' salary and performance pay scales could be included in the
report for the purpose of greater transparency.
1.197
The part on the FOI requests mentions that 12 were received in the
financial year, but not how many were granted or refused.
1.198
The report offers an interesting insight into the history of
superannuation.[41]
Operational matters
1.199
This operating year the Tribunal undertook a major project to
re-engineer its complaints resolution process. The number of superannuation-related
complaints received increased by 6.5% during the year to 2,619, the majority of
which related to administration of superannuation. Two matters were referred to
ASIC.
Takeovers Panel – annual report
2011–12
Reporting requirements
1.200
The committee considers that the Panel has met its reporting
requirements under the Acts, and commends it for including a compliance index
in its report.
1.201
The report notes that the Panel 'has adopted Treasury's policies and
procedures in relation to the Commonwealth disability strategies',[42]
however, it would be useful to include a statement in the Panel's report as to
what those policies entail.
Operational matters
1.202
The primary objective of the Panel is ‘to improve certainty, efficiency
and fairness of Australia’s takeovers market.’[43]
Its principal work is around deciding applications for declarations of
unacceptable circumstances, and making orders to remedy them. The annual report
states that this reporting year the Panel received the least number of
applications since 2000 – 16 compared to an average of 30.
1.203
The Panel was subject to two judicial reviews during the reporting
period: in the case of CMI Limited, and Bentley Capital Limited. Both have been
resolved.
Tax Practitioners Board – annual
report 2011–12
Reporting requirements
1.204
The committee considers that the Tax Practitioners Board has met its
requirements under the Tax Agent Services Act 2009 (TASA) and commends it
for a well-structured report, and in particular for including a compliance
index even though the TPB is not covered by the FMA or CAC Acts.
1.205
The report states that the TPB is implementing improvements to their
complaint management processes, as identified with the Ombudsman.
1.206
The Board’s resources are provided by the ATO and its financial
operations reported as part of the ATO’s financial statements. Although the
report states that information on remuneration, performance pay and health and
safety[44]
is covered in the ATO's annual report, it would be helpful to include some aspects
of this information in the Board's annual report.
Operational matters
1.207
This was the Board's second operating year. It received 22,366 agent
applications for registration, of which it finalised 18,786. It received and
resolved almost 1,300 complaints about tax practitioners and unregistered
agents, terminated the registration of seven agents, and commenced its first
civil penalties actions under the TASA, of which one culminated in the Federal
Court's imposing a $30,000 penalty on an unregistered agent for preparing tax
returns for a fee.
Senator Mark Bishop
Chair
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