Report on the examination of annual reports - No 1 of 2001

Senate Employment, Workplace Relations Small Business and Education Legislation Committee

Chair: Senator John Tierney (LP) NSW
Deputy Chair: Senator Kim Carr (ALP) Vic
Senator George Brandis (LP) QLD
Senator Jacinta Collins (ALP) Vic
Senator Jeannie Ferris (LP) SA
Senator Natasha Stott Despoja (AD) SA

Secretariat

Mr John Carter, Secretary
Mrs Jan Willis, Research Officer
Ms Cheryl Hardiman, Research Officer

Preface

Terms of reference

On 24 August 1994, the Senate adopted the following procedural orders relating to the functions of legislation committees and, in particular, their role in relation to annual reports[1]:

25(21) Annual report 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:

examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;
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;
investigate and report to the Senate on any lateness in the presentation of annual reports;
in considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;
if the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;
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;
draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and
report to the Senate each year whether there are any bodies which do no present annual reports to the Senate and which should present such reports.

Annual reports referred

1.1 Under a procedural order in the 39^th Parliament, the Senate agreed that two departments, Employment, Workplace Relations and Small Business and the Department of Education, Training and Youth Affairs, be allocated to the Employment, Workplace Relations, Small Business and Education Legislation Committee. The list of annual reports that fall within the ambit of the Committee is set out in Appendix 1.

1.2 In accordance with Senate Standing Order 25 (21) (f) this report examines those annual reports referred to the Committee between 1 May 2000 and 31 October 2000. During this period fifteen annual reports of statutory authorities, two reports on the operation of legislation, two annual reports of a government company, and two departmental reports were received. These reports are listed in Appendix 2.

Method of assessment

1.3 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 portfolio departments, sections 7 and 25 of the Public Service Act 1922, and the Requirements for Departmental Annual Reports, Department of Prime Minister and Cabinet, May 1999
for Commonwealth authorities and companies, the Commonwealth Authorities and Companies Act 1997
for non-statutory bodies, the guidelines contained in the Government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies, Senate Hansard, 8 December 1987, pp 2643-45

1.4 With the exception of the Requirements for Departmental Annual Reports, these guidelines are printed under Appendix 3.

General Comments on Reports

1.5 The Committee has agreed, under the terms of the procedural order requiring it to report to the Senate on Annual Reports, that all reports described here are apparently satisfactory. In making this assessment, the Committee considers aspects such as the timeliness of presentation and compliance with relevant reporting guidelines.

1.6 The Committee found all reports had been lodged with the appropriate minister on time, were tabled in Parliament within the specified period, and met the required reporting requirements. The reports are generally of a high calibre in layout and in the extent of information presented. All reports meet the requirement of being apparently satisfactory.

Comments made in the Senate

The Committee is obliged, under Senate Standing Order 25 (21)(d) to consider any remarks made about these reports in the Senate. Where remarks have been made, the senator's name and the date of the comments have been noted.

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 there are no bodies, within these portfolios, which do not meet their reporting requirements to the Senate.

Senator J Tierney

Chair

Comments on Individual Reports

Departmental annual reports

Department of Education, Training and Youth Affairs

The department has met all its reporting requirements.

Department of Employment, Workplace Relations and Small Business

The report meets all reporting requirements.

Annual reports of statutory authorities

Education, Training and Youth Affairs Portfolio

Australian National Training Authority - Annual Report on Operations 1999-2000

This report by ANTA met all reporting requirements.

Australian National Training Authority – National Report 1999 Volumes 1-3

All reporting requirements have been met by these reports.

Australian National University Annual Report 1999

The report met all reporting criteria. The Committee notes, however, the Auditor-General’s qualification on land value.

Senator Stott Despoja commented on this report in the Senate on 21 June 2000.

Australian Research Council Annual Report 1999-2000

This report by the ARC meets all statutory reporting requirements.

Employment Workplace Relations and Small Business Portfolio

Australian Industrial Relations Commission and Australian Industrial Registry Annual Report 1999-2000

Senator Cook made reference to this report in the Senate on 31 October 2000.

Both these reports met all the reporting criteria.

Comcare and QWL Corporation Pty Limited Annual Reports 1999-2000

All reporting requirements have been met by both reports.

Employment Services Regulatory Authority Annual Report 1999-2000

The Authority had no functional operations during 1999-2000.

The report met all reporting requirements for a statutory authority.

Equal Opportunity for Women in the Workplace Agency Annual Report 1999-2000

The Affirmative Action Agency was renamed the Equal Opportunity for Women in the Workplace Agency as a result of recommendations of an independent review committee’s final report in June 1998. The enabling legislation, the Equal Opportunity for Women in the Workplace Act 1999 became effective from 1 January 2000. The report of the agency meets the required reporting criteria.

National Occupational Health and Safety Commission Annual Report 1999-2000

This report meets all annual report requirements for a statutory authority.

Safety, Rehabilitation and Compensation Commission Annual Report 1999-2000

The report of the Commission has met all statutory reporting obligations.

Seafarers Safety, Rehabilitation and Compensation Authority Report 1999-2000

The report of the Authority has met all statutory reporting obligations.

Annual reports of non-statutory authorities and other bodies

Employment, Workplace Relations and Small Business Portfolio

Coal Mining Industry (Long Service Leave Funding) Corporation, Annual Report 1999-2000

The report has met all reporting requirements.

Annual reports on the operations of acts

Education, Training and Youth Affairs Portfolio

States Grants (Primary and Secondary Education Assistance) Act 1996, Report on financial assistance granted to each State in respect of 1999

Reporting requirements were met by this report.

Employment, Workplace Relations and Small Business Portfolio

National Industrial Chemicals Notification and Assessment Scheme, The Operation of the Industrial Chemicals (Notification and Assessment) Act 1989, Annual Report 1999–2000

The report fulfilled all reporting requirements.

Appendix 1 - Allocation of annual reports of Commonwealth bodies to legislation Committees (Revised 25/11/99)
Education, Training and Youth Affairs Portfolio

Anglo-Australian Telescope Board – Anglo Australian Observatory
Australian Education Council (Ministerial Council on Education, Employment, Training and Youth Affairs) (National Report on Schooling)
Australian National Training Authority
Australian National Training Authority National Report (Australian Vocational Education and Training System)
Australian National University
Australian Research Council
Department of Education, Training and Youth Affairs
Higher Education Report for a Triennium
National Board of Employment, Education and Training
Operation of section 14 of the Higher Education Funding Act 1988 and the Higher Education Contribution Scheme (Higher Education Council)
Report on determinations made under the Higher Education Act 1988
States Grants (Primary and Secondary Education Assistance) Act 1996 - Financial assistance granted to States

Employment, Workplace Relations and Small Business Portfolio

Australian Industrial Relations Commission and Australian Industrial Registry
Coal Mining Industry (Long Service Leave Funding) Corporation
Comcare Australia and QWL Corporation Pty Limited
Defence Force Remuneration Tribunal[2]
Department of Employment, Workplace Relations and Small Business
Developments made under the Workplace Relations Act 1996.
Employment Advocate
Employment National Limited[3]
Employment Services Regulatory Authority
Equal Opportunity for Women in the Workplace Agency
Industrial Chemicals (Notification and Assessment) Act 1989 - National Industrial Chemicals Notification and Assessment Scheme
National Occupational Health and Safety Commission
Safety, Rehabilitation and Compensation Commission
Seafarers Safety, Rehabilitation and Compensation Authority

Appendix 2 - List of annual reports referred

List of Annual reports referred by the Senate to the Committee during the period 1 May 2000 to 31 October 2000.

Employment, Workplace Relations and Small Business Portfolio

Body/Report	Submitted to Minister	Received by Minister	Tabled
Department
Department of Employment, Workplace Relations and Small Business			26/10/2000*
Statutory authorities
Australian Industrial Relations Commission and Australian Industrial Registry	6/10/2000	6/10/2000	31/10/2000
Comcare Australia			19/10/2000*
Employment Services Regulatory Authority			27/10/2000*
Employment Advocate	19/10/2000	20/10/2000	28/11/2000
Equal Opportunity for Women in the Workplace Agency			27/10/2000*
Defence Force Remuneration Tribunal[4] [See FADT Committee Report]			24/10/2000*
National Occupational Health and Safety Commission			12/10/2000*
Safety, Rehabilitation and Compensation Commission			19/10/2000*
Seafarers Safety, Rehabilitation and Compensation Authority			19/10/2000*


Companies
Coal Mining Industry (Long Service Leave Funding) Corporation			19/10/2000*
Employment National Limited[5] [See Finance and Public Administration Committee Report]			31/10/2000
Reports on legislation
Industrial Chemicals (Notification and Assessment) Act 1989 – National Industrial Chemicals Notification and Assessment Scheme	12/9/2000	12/9/2000	10/10/2000

* Presented out of session

Education, Training and Youth Affairs portfolio

Body/Report	Submitted to Minister	Received by Minister	Tabled
Department
Department of Education, Training and Youth Affairs			27/10/2000*
Statutory authorities
Australian National Training Authority – Annual Report on Operations			25/10/2000*
Australian National Training Authority - National Report (Australia’s vocational education and training system) Vols 1-3			25/10/2000*
Australian National University	14/4/2000	14/4/2000	21/6/2000
Australian Research Council			27/10/2000*
Reports on Legislation
States Grants (Primary and Secondary Education Assistance) Act 1996 – Report on financial assistance granted to each State in respect of 1999	26/9/2000	9/10/2000	31/10/2000

* Presented out of session

Appendix 3 - Guidelines

DEPARTMENTAL REPORTS

The requirements for departmental annual reports are included in the Requirements for Departmental Annual Reports, Department of the Prime Minister and Cabinet, May 1999, and also in sections 7 and 25 of the Public Service Act 1922. The sections of this Act which specify the requirements in regard to timeliness of annual reports are reproduced below.

Section 25

(6) Subject to subsections (8A) and (8B), the Secretary of a Department must, as soon as practicable after 30 June in each year, and in any event not later than 15 October in that year, prepare and give to the Minister administering the Department a report on the operation of the Department during the year that ended on that 30 June.

(8) Subject to subsection (8C), the Minister administering a Department must cause a copy of a report given to him or her under subsection (6) to be laid before each House of the Parliament on or before 31 October in the year in which the report is given.

COMMONWEALTH AUTHORITIES AND COMPANIES

The Commonwealth Authorities and Companies Act 1997 contains detailed rules about reporting and accountability for Commonwealth authorities and Commonwealth companies. Commonwealth companies also must meet other reporting requirements as set out in Corporations Law.

Relevant sections of the Commonwealth Authorities and Companies Act 1997 for annual reports are set out below.

Part 3 – Reporting and other obligations for Commonwealth authorities

Schedule1, Part 3, Division 1, Section 7

Section 7 Meaning of Commonwealth Authority

In this Act, Commonwealth authority means either of the following kinds of body that holds money on its own account:
1. a body corporate that is incorporated for a public purpose by an Act;
2. a body corporate that is incorporated for a public purpose by:
  1. regulations under an Act; or
  2. an Ordinance of an external Territory (other than Norfolk Island) or regulations under such an Ordinance;

and is prescribed for the purposes of this paragraph by regulations under this Act.

Schedule1, Part 3, Division 2, Section 9

Section 9 Directors must prepare annual report

The directors of a Commonwealth authority must:
1. prepare an annual report in accordance with Schedule 1 for each financial year; and
2. give it to the responsible Minister by the deadline for the financial year

The deadline is the 15^th day of the 4^th month after the end of the financial year.

The responsible Minister must table the report in each House of the Parliament as soon as practicable.

Note: The Acts Interpretation Act 1901 limits the term ‘as soon as practicable’ to 15 sitting days from receipt (s.34C(3)).

Part 4 – Reporting and other obligations for Commonwealth companies

Schedule1, Part 4, Division 1, Section 34

Section 34 Meaning of Commonwealth company and wholly owned Commonwealth company

(1) In this Act, Commonwealth company means a Corporations Law company in which the Commonwealth has a controlling interest.

However, it does not include a company in which the Commonwealth has a controlling interest through one or more interposed Commonwealth authorities or Commonwealth companies.

(2) In this Act, wholly-owned Commonwealth company means any Commonwealth company, other than a company any of the shares in which are beneficially owned by a person other than the Commonwealth.

Schedule1, Part 4, Division 2, Section 36

Section 36 Annual Report

(1) At least 14 days before each annual general meeting, a Commonwealth company must give the responsible Minister: (a) a copy of the company's annual report that includes the company's annual general meeting documents (or, if there is no such annual report, a copy of the company's annual general meeting documents); and (b) any additional report under subsection

For this purpose, annual general meeting documents means the documents relating to a financial year that the company is required by the Corporations Law to lay before its annual general meeting.

(4) If the Commonwealth company is a wholly-owned Commonwealth company, the responsible Minister must table the documents in each House of the Parliament as soon as practicable after receiving them. In all other cases, the Minister must table the documents in each House of the Parliament as soon as practicable after the annual general meeting of the company.

Schedule1, Part 1, Section 1

Part 1 - Contents of annual report

Section 1 Summary of contents

The annual report must include:

a report of operations, prepared by the directors in accordance with the Fiance Minister’s Orders; and
financial statements, prepared by the directors under clause 2 of this Schedule; and
the Auditor-General’s report on those financial statements, prepared under Part 2 of this Schedule and addressed to the responsible Minister.

Note: The report may include other matters, for example, matters that are required by another Act or by Ministerial guidelines.

NON-STATUTORY BODIES

The date of establishment of each new non-statutory body (NSB) and, in relation to an existing NSB, information regarding the date of its establishment in as much detail as is available.
A statement of each NSB’s objectives and functions.
An account of each NSB’s significant activities during the year.
An indication that the creation or continued existence of each NSB, its functions and its organisation have received Ministerial approval.
The date on which each NSB will cease to exist or before which it will be reviewed (whichever is the earlier).
In the case of any NSB whose continued existence, functions and organisation have been reviewed and whose continued existence has been approved by the Minister, a summary of the outcome of the review.
A list of any positions provided for ex-officio government members on each NSB and of any positions provided for representatives nominated by particular non–government organisations.
The maximum term of appointment to each other position on an NSB.
Except in cases where there may be little or no continuity of membership from one meeting to the next, the names of individual members of each NSB, and their terms of appointment.
The manner in which the level of remuneration (if any) paid to members of each NSB is determined.
The manner in which each NSB is funded.
A summary of any other financial arrangements such as the kinds of expenditure that can be made from the funds provided, and the nature of secretariat services provided and the way in which these are funded.
An indication, in respect of each NSB, as to whether one of its functions is to distribute funds to other organisations or individuals.
In the case of each NSB with its own accounting system, an audited financial statement.
In the case of each NSB that operates through its parent body’s accounts, an account of receipts and expenditures, to be provided on a program basis:
- with the NSB’s work reflected in the parent body’s published program structure;
- and with performance related to objectives and measured in terms of stated criteria, in accordance with standard program budgeting techniques; and
- the amounts of any grants made by each NSB.

(Derived from the government response to the report on non-statutory bodies of the Senate Standing Committee on Finance and Government Operations, Senate Hansard, Vol. S.124, 8 December 1987, pp. 2643–5.)

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Report on the examination of annual reports - No 1 of 2001