Review of Annual Reports


Review of Annual Reports

Terms of reference

1.1        This report was prepared pursuant to Standing Order 25(20) relating to the consideration of annual reports by committees. The Standing Order states:

Annual reports of departments and agencies shall stand referred to the committees in accordance with an allocation of departments and agencies in a resolution of the Senate. Each committee shall:

  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.
  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.[1]

Role of annual reports

1.2        Annual reports place a great deal of information about government departments and agencies on the public record. Accordingly, the tabling of annual reports is an important element of accountability to Parliament, assisting in the effective examination of the performance of departments and agencies, and the administration of government programs.

Annual reports referred

1.3        In accordance with Senate Standing Order 25(20)(f) this report examines those annual reports tabled between 1 May 2007 and 31 October 2007. The committee examined the reports of the:

Departments and prescribed agencies (under the FMA Act)

  • Department of Education, Science and Training;

Statutory authorities (under the CAC Act)

  • Australian National university;

Reports on the operation of Acts

  • Air Passenger Ticket Levy (Collection) Act 2001 – Report for 1 Apr 2006 to 31 Mar 2007
  • Workplace Relations Act 1996 – Report for 2004 to 2006 on agreement making under the act.

1.4        The tabling dates of these reports are listed at Appendix 2. Details of all annual reports falling within the purview of the committee are set out at Appendix 1.

Method of assessment

1.5        The Senate Standing Orders require the committee to examine the annual reports referred to it to determine whether they are timely and ‘apparently satisfactory’. In making this assessment, the committee considers whether the reports comply with the relevant requirements for the preparation of annual reports of departments and authorities.

1.6        The requirements are set down in the following instruments:

  • for portfolio departments: the Public Service Act 1999, sections 63(2) and 70(2), and the Requirements for Departmental Annual Report, for Departments, Executive Agencies and FMA Act Bodies, Department of Prime Minister and Cabinet, revised June 2006;
  • for Commonwealth authorities and companies: the Commonwealth Authorities and Companies Act 1997, in particular sections 9, 36 and 48; and
  • for non-statutory bodies: the guidelines are 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

Timeliness in tabling annual reports

1.7        Standing Order 25(20)(c) requires the committee to report to the Senate on the late presentation of annual reports.

1.8        Annual reports must be tabled in Parliament by 31 October each year, except where an agency's own legislation specifies a timeframe for its annual report.[2] Those agencies reporting under the Commonwealth Authorities and Companies Act 1997 are required to provide their annual reports to the minister by the 15th day of the fourth month after the end of the financial year. Where the financial year ends on 30 June, this deadline translates to 15 October.[3]

1.9        The committee recognises that some bodies are required to comply with other timeframes as stipulated in their enabling legislation. Nonetheless, the committee reminds all bodies that the government considers it best practice for annual reports to be tabled by 31 October each year.

1.10      The committee notes that a substantial proportion of annual reports under its purview, including that of the Department of Employment and Workplace Relations, were not received by the 31 October. The agencies which did not meet the reporting deadline—and which will be examined in report no. 2 of 2008— are:

  • Australian Building and Construction Commissioner;
  • Australian Fairpay Commission;
  • Australian Industrial Relations Commission and Australian Industrial Registry;
  • Coal Mining Industry (Long Service Leave Funding) Corporation;
  • Comcare;
  • Defence Force Remuneration Tribunal;
  • Department of Employment and Workplace Relations;
  • Employment Advocate;
  • Safety, Rehabilitation and Compensation Commission;
  • Seafarers Safety, Rehabilitation and Compensation Authority; and
  • Workplace Ombudsman.

1.11      Of the above ten agencies, the committee received five formal requests for extensions of time to report in accordance with subsection 34C(6) of the Acts Interpretation Act 1901. The committee notes that these requests were not received until the 26 November 2008.

1.12      The committee understands that the general election in November undoubtedly contributed to delays in gaining ministerial approval and the general tardiness of reports. As in the case of the Department of Employment and Workplace Relations, the draft report was transmitted to the Minister on the 14 September but not approved until the 22 November. Other senate committees did not report a corresponding proportion of late reports.

1.13      The committee, once again, strongly encourages departments and agencies to table annual reports in a timely manner and expects a substantial improvement for the
2007-08 annual reports.

General comments on reports

1.14      The committee has agreed, under the terms of the procedural order requiring it to report to the Senate on annual reports, that all reports referred are apparently satisfactory and generally of a high standard in layout and in the extent of information presented. In making this assessment, the committee considers aspects such as the timeliness of presentation and compliance with relevant reporting requirements.  

Department of Education, Science and Training

1.15      The Department of Education, Science and Training (DEST) Annual Report for 2006-07 was presented to the President, pursuant to Standing Order 166, and transmitted to the committee on 31 October 2007.

1.16      As required under the Department of Prime Minister and Cabinet's annual reporting guidelines, departmental reports should provide information on corporate governance, internal and external scrutiny, management of human resources, purchasing, assets management, consultancies, advertising and market research activities, discretionary grants, freedom of information, occupational health and safety, Commonwealth Disability Strategy and ecologically sustainable development and environmental performance. The committee notes that all mandatory requirements were met.

Departmental Overview

1.17      The Secretary's overview notes that there was a new Minister for Vocational and Further Education, the Hon Andrew Robb AO MP.

1.18      The overview also states that DEST reported an operating deficit for 2006-07 of $0.1 million as opposed to a $15.7 million deficit in 2005-06. The department's expenses were also $55.4 million higher than in 2005-06 due to new policy initiatives including: Skills for the Future, National School Chaplaincy Program, Research Quality Framework and a national approach to training and skills recognition.

1.19      The department, as a result of a recommendation from the Department of Finance and Administration, has also changed its accounting policy for the recognition of educational grants. The Australian National Audit Office (ANAO) report on the financial statements of government entities states that as a result of this change the department's grants liability has been reduced by $8,295.9 million.[4]

1.20      The report also notes, that the department's overall employee numbers increased by 5 per cent during 2006-07 to 2490 employees.

Management and accountability

1.21      The committee observed that there was one program related complaint referred to the department by the Human Rights and Equal Opportunity Commission. The complaint relates to a claim alleging disability discrimination in relation to a program administered by the department and this complaint is not yet finalised. The Commission also dismissed another employment related age-discrimination complaint.

1.22      In terms of consultancies, the report lists 341 active consultancies with expenditure of $20 million. This is a slight increase over the previous year where there were 298 active consultancies worth $17.48 million.

1.23      The committee also notes that the report outlines various sanctions against registered providers of education to overseas students. In 2006-07, four registered providers had their registration cancelled for all courses in one state and 95 had their registration automatically suspended or cancelled.

1.24      In regards to Freedom of Information, the department received 53 requests of which 4 were granted in full, 22 granted in part, 9 refused, 15 withdrawn and 3 outstanding.  The committee notes that the amount of estimated charges notified increased substantially from $37 022 in 2005-06 to $188 213 in 2006-07.

Services to ministers and Parliament

1.25      The committee notes that the total volume of ministerial documents processed in 2006-07 by the department increased by 2.5 per cent with the volume of ministerial briefings increasing by 31 per cent. There was a 38 per cent drop in the number of senate estimates questions asked in 2006-07 when compared with 2005-06.

2004-05 Annual Report errors and omissions

1.26      DEST has identified and included five separate corrections to the 2005-06 report. Although most were minor corrections, the committee notes one significant correction to the value of a consultancy contract for the Australian National University which was incorrectly listed as worth $997 748 instead of $3025.

Reports by the Auditor-General

1.27      In 2006-07 the ANAO tabled one relevant report on the Higher Education Loan Programme (HELP).[5]  The objective of the audit was to assess the effectiveness of procedures and processes used by the department and the Australia Tax Office to record HECS–HELP student loans.

1.28      Overall, the department was found to be effectively implementing the program. The ANAO, however, identified two areas in the administration of HECS–HELP that could be improved.  The first concerned the departments monitoring role in relation to student contribution amounts charged by higher education providers. The second concerned the need for a more timely reconciliation of HECS–HELP payments so the department can report payments in the financial year that they are made. The department has agreed to both of the ANAO's recommendations.

Conclusion

1.29      The committee considers DEST's 2006-07 annual report to be well presented and in compliance with the reporting requirements of a Commonwealth department.

Higher Education Report 2005

1.30      In addition to the department's annual report, the Minister also tabled the Higher Education Report 2005.

1.31      This report is the second of a series of annual reports produced by the department to replace the Higher Education Triennium Report series in production since 1988. The committee notes that 2005 was the first in which the majority of the then government's higher education initiatives were implemented, including the 'Our Universities: Backing Australia's Future' package.

1.32      The committee notes that the Higher Education Report 2005 was referred to by Senator Carr in the Senate in his second reading speech on the Indigenous Education (Targeted Assistance) Amendment (2007 Budget Measures) Bill 2007. The senator stated that:

According to the Higher education report 2005, which is produced by the government’s very own Department of Education, Science and Training, the number of Indigenous students attending Australia’s higher education institutions decreased by 5.9 per cent in 2005. The report noted that Indigenous commitments particularly in nursing, initial teacher training and medical practitioner courses had also declined. The total commencements in these and related courses had declined overall in 2005 by eight per cent. So, at a time when we need more Indigenous students undertaking professional programs to service remote communities, we actually have fewer people taking up those educational opportunities. DEST admitted in its Higher education report 2005 on page 21 that this was part of an ongoing trend...The report acknowledged that these continuing declines will perpetuate disadvantage and inequality in this country. [6]  

1.33      Overall, the committee considers this to be a comprehensive report on the higher education system for 2005. The report provides a substantial amount of data on student and staff statistics, graduate starting salaries, the Commonwealth grant scheme, scholarships, indigenous enrolments and HELP debts.

Reports not examined

1.34      The committee is not obliged to report on Acts, statements of corporate intent, surveys, corporate plans or errata. The following documents were referred to the committee but not examined:

  • Air Passenger Ticket Levy (Collection) Act 2001 – Report for 1 Apr 2006 to 31 Mar 2007
  • Workplace Relations Act 1996 – Report for 2004 to 2006 on agreement making under the act.

Comments made in the Senate

1.35      The committee is obliged, under Senate Standing Order 25(20)(d), to consider any remarks made about these reports in the Senate. The committee is satisfied that there were no comments to consider for these reports.

Bodies not presenting annual reports to the Senate

1.36      The committee is required to report to the Senate each year on whether there are any bodies not presenting annual reports to the Senate which should. The committee is satisfied that there are no such bodies.

 

Senator Gavin Marshall
Chair

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