Report on the examination of annual reports - No 2 of 1997


Report on the examination of annual reports - No 2 of 1997

Senate Employment, Education And Training Legislation Committee

Chair:  Senator John Tierney (LP) NSW
Deputy Chair:  Senator Kim Carr  (ALP) Vic
Senator Hon. Rosemary Crowley (ALP) SA
Senator Jeannie Ferris (LP) SA
Senator Natasha Stott Despoja (AD) SA
Senator Judith Troeth  (LP) Vic

Participating Members

Senator Eric Abetz (LP) TAS
Senator Lyn Allison (AD) Vic
Senator Hon. Nick Bolkus (ALP) SA
Senator Bob Brown (Greens) Tas
Senator Hon. Bob Collins (ALP) NT
Senator Mal Colston (Ind) Qld
Senator Barney Cooney (ALP) Vic
Senator Chris Evans (ALP) WA
Senator Michael Forshaw (ALP) NSW
Senator Brian Harradine  (Ind) Tas
Senator John Hogg (ALP) Qld
Senator Sue Mackay (ALP) Tas
Senator Dee Margetts (GWA) WA
Senator Shayne Murphy (ALP) WA
Senator Kerrie O’Brien (ALP) Tas
Senator Karen Synon (LP) Vic

Secretariat

Mr Brenton Holmes, Secretary
Ms Jan Connaughton, Principal Research Officer
Ms Jan Willis, Research Officer
Ms Maria Gallace, Executive Assistant

 

REPORT ON ANNUAL REPORTS
No 2 of 1997

Annual Reports Referred

This report was prepared pursuant to resolution of the Senate of 24 August 1994, relating to the Consideration of Annual Reports by Committees. The annual reports considered herein are those referred to the Senate Employment, Education and Training Legislation Committee between January and August 1997.

The Committee is responsible for the Employment, Education and Training portfolio. The list of annual reports that fall within the ambit of the Committee is set out in Appendix 2. The annual reports examined by the Committee in its last report (No.1 of 1997) were:

  • Department of Employment, Education, Training and Youth Affairs 1995-96
  • Anglo-Australian Observatory 1995-1996
  • Australian National Training Authority 1995-1996
  • National Board of Employment, Education and Training 1995-1996
  • The Australian National University 1995
  • The University of Canberra 1995
  • The Australian Maritime College 1995

The reports examined by the Committee in this report (No.2 of 1997) are:

Annual reports

  • Employment Services Regulatory Authority (ESRA) 1995-96
  • University of Canberra 1996
  • Australian Maritime College 1996

Reports on legislation

  • Higher Education Council Eleventh Report on Operation of Section 14 of the Higher Education Funding Act 1988  and the Higher Education Contribution Scheme
  • Higher Education Funding Act 1988 1996 Determinations

Method of Assessment

The Senate Order referred to previously requires that the Committee examine the Reports referred to it to determine whether they are timely and 'apparently satisfactory'. In forming its assessment, the Committee has considered whether the reports comply with the relevant guidelines for the preparation of annual reports. For statutory authorities, these are the Guidelines for the Content, Preparation and Presentation of Annual Reports by Statutory Authorities (tabled November 1982). The Guidelines are set out in Appendix 1.

General Comments on Reports

The reports examined by the Committee were of a high standard. Perhaps as a result of developments in desktop publishing software, the Committee notes that reports are incorporating more charts and diagrams. Such a development assists the presentation of material in a coherent, visually impressive summary form.

Timeliness of Reports

Most reports referred to the Committee had been lodged with the appropriate Minister on time, and were tabled in Parliament within the specified period. The report from the Employment Services Regulatory Authority (ESRA) 1995-96 was marginally delayed due to software errors in the reporting modules of ESRA's financial management information system.

Comments on Annual Reports

  • Employment Services Regulatory Authority (ESRA) 1995-96

The report is set out very clearly, and is divided conveniently into three parts - the Organisational Overview, the Performance Record and Appendices. The use of headings, tables and charts makes the report extremely reader-friendly. The Committee commends ESRA on the design and presentation of the report. The use of discrete 'case study' anecdotes to highlight particular features of ESRA's operations is also extremely effective. The ESRA 1995-96 report sets a high standard which the Committee hopes will be maintained in future years.

  • University of Canberra 1996

The report for the calendar year 1996 is simply and clearly presented and it meets all the reporting guidelines for statutory authorities. The Committee notes that the structure of the report reflects the three main foci of the university's activity: Teaching and Learning, Research and Community Service. The result is an effective, readily accessible annual report.

  • Australian Maritime College 1996

The 1996 report has upgraded the style and presentation of previous reports while retaining the accessibility and comprehensiveness of the information included. The Committee has commended in its previous report on annual reports the proactive approach of the College involving outreach to designated disadvantaged groups. The Committee is pleased to note that this commitment continues with the implementation of the College's ATSI Education and Employment Strategy and the submission of an Equity Plan for the 1997-99 triennium. The report meets all the necessary requirements.

Comments on Legislation Reports

  • Higher Education Council Eleventh Report on Operation of Section 14 of the Higher Education Funding Act 1988  and the Higher Education Contribution Scheme

This report deals largely with the profiles process conducted by DEETYA whereby the Commonwealth and universities discuss and negotiate important policy and related issues. Most of the substantive issues discussed during the profiles process related to measures announced in the 1996 Budget. It also reports on the operation of the HECS Scheme. The report contains detailed statistical tables relevant to the operation of the Act. In the Committee's view, the report meets the requirements of the legislation.

  • Higher Education Funding Act 1988 1996 Determinations

This report sets out in considerable detail the determinations made under the Act in respect of 1996. The determinations related to the provision to universities of financial assistance for operating purposes, superannuation, projects of national priority, grants for innovation and quality measures, the promotion of equal opportunity, grants to open learning organisations and for special research assistance. It also details grants for advanced engineering centres, cooperative multimedia centres, teaching hospitals and capital projects. The Committee is satisfied that the report provides a comprehensive listing of the determinations as required by the Act.

Bodies Not Presenting Annual Reports to the Senate

The Committee is required to report to the Senate each year on whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

The Committee is satisfied that the bodies which do not report to the Senate have either adequate alternative reporting requirements or are reported on sufficiently by DEETYA in its annual report. DEETYA is required under its reporting requirements to supply on request information on statutory authorities, non-statutory bodies and government companies.

 

Senator J Tierney
Chair

 

 

Appendix 1 - Guidelines for statutory authorities

(See Senate, Hansard, 11 November 1982, pp 2261-2)

Introduction

These guidelines are intended to cover generally the annual reporting requirements for statutory authorities (incorporated or unincorporated authorities established by or pursuant to a law of the Commonwealth or of the ACT) and are subject to refinement in the light of experience.

Reports of small unincorporated authorities and office holders within the public account may continue to be included in the related departmental reports where it is practical to do so.

The guidelines do not, of course, override statutory requirements imposed by the legislation on individual authorities, but to the extent that they require a higher standard than does the legislation, they should be followed by all such authorities.

All authorities are to provide annual reports as soon as possible after the end off their financial year, if possible for the estimates debate in the Budget Sittings. At the very latest, reports should be submitted within six months (unless a shorter period is provided in the legislation of an individual authority). An explanation will be submitted to Parliament if the deadline has to be extended in exceptional cases (the new deadline is to be mentioned in the explanation). Ministers will ensure that reports are tabled within fifteen sitting days of receipt.

Where there is a requirement for a form of financial statements to be approved by the Minister for Finance, authorities should commence negotiations with the Department of Finance early enough to allow issues to be resolved without delaying the annual report. Authorities also need to bear in mind the need for reasonable time to be allowed for completion of auditing of the financial statement within the six month deadline.

Report contents

Reports should be the means of providing a wide dissemination of information on authorities, with special attention being given to making available material that might not otherwise be made public as a matter of course.

Application of these guidelines to those authorities engaged in commercial competition with the private sector is subject to the need to protect commercially sensitive material.

The following information is to be provided in future annual reports:

  1. Enabling legislation: A clear statement of the legislation (if any) under which the organisation operates.
  2. Responsible minister: To be shown. A description of any statutory powers of direction which the minister has over the authority and any details of the exercise of any such powers, subject to the need to protect confidential information, to be included.
  3. Powers, functions and objects: To be detailed.
  4. Membership and staff. A list of the members of the body and their terms of appointment, together with listing of senior executive staff and a statement of the total number of staff employed by the organisation. In addition, the basis for staffing of the organisations should be identified. The address and phone number of the information officer should also be included.
  5. Financial statements: All government bodies should provide statements which adequately disclose financial aspects of their activities. For example, where the form of a body's financial statements is approved by the Minister for Finance, the approved form must, of course, be followed; where an unincorporated body has no specific financial responsibilities and no financial reporting requirement exists, it might be appropriate to disclose departmental receipts and expenditures relevant to its operations, while avoiding unnecessary duplication of the information contained in the annual Financial Statements prepared by the Minister for Finance. The requirement for adequate disclosure will extend to bodies incorporated under companies legislation if the Commonwealth is sole owner or shareholder; this will not affect the need to satisfy the reporting requirements under company law. The Department of Finance and the Auditor-General's Office are preparing guidelines which will assist Commonwealth undertakings in preparing financial statements; an exposure draft entitled 'Proposed Guidelines for the Form and Standard of Financial Statements of Commonwealth Undertakings' was issued in August 1980. The exposure draft has been considered by the relevant parliamentary committees.
  6. Activities and reports: A description of the principal programs and activities of the body noting objectives and reviewing achievements. Information on interaction with other authorities, departments and state and international bodies should be provided as should a list of publications during the reporting period.
  7. Operational problems: A description of the major problems which have arisen in the body's activities, including details of requisite government action to overcome such problems eg the amendment of the enabling Act.
  8. Subsidiaries: Details of subsidiary companies formed, or interest acquired in existing companies, are to be provided. It is a desirable practice to include the annual report of such subsidiaries as are controlled by the parent authority with the report of that authority, where this is feasible.

 

Appendix 2 - Allocation of annual reports of Commonwealth bodies to legislation Committees

EMPLOYMENT, EDUCATION AND TRAINING

Employment, Education and Training portfolio

Annual Reports
Anglo-Australian Telescope Board
Australian Education Council (National Report on Schooling)
Australian Maritime College
Australian National Training Authority
Australian National University
Department of Employment Education, Training and Youth Affairs
Employment Services Regulatory Authority
University of Canberra

Reports on legislation
Report on determinations made under the Higher Education Funding Act 1988
Report on operation of Section 14 of the Higher Education Funding Act 1988 and
Higher Education Contribution Scheme
States Grants (Primary and Secondary Assistance) Act 1992 - Financial Assistance granted to States
States Grants (Schools Assistance) Act 1988
Student and Youth Assistance Act 1973

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