1.1
This is the first report on annual reports for 2022 of the Senate Education and Employment Legislation Committee (the committee). It provides an overview of selected annual reports of agencies within the allocated portfolio tabled in the Senate between 1 May and 31 October 2021.
Terms of reference
1.2
Under Senate Standing Order 25(20), the annual reports of certain departments and agencies are referred to the committee for examination and assessment. The committee is required to:
(a)
Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;
(b)
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;
(c)
Investigate and report to the Senate on any lateness in the presentation of annual reports;
(d)
In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;
(e)
If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;
(f)
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;
(g)
Draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and
(h)
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.
Purpose of annual reports
1.3
The tabling and scrutiny of annual reports by Senate committees under Standing Order 25(20) is an important element in the process of government accountability to the Parliament. The information provided in annual reports is placed on the public record and assists the Parliament in its examination of the performance of departments and agencies and the administration of government programs.
Allocated portfolios
1.4
In accordance with resolutions of the Senate on 13 February 2020 and 12 May 2021, the committee is responsible for the examination of the expenditure and outcomes of the following portfolio:
Education, Skills and Employment, including Industrial Relations.
1.5
Previously, the committee was also responsible for the Industry, Science, Energy and Resources portfolio, excluding Industry, Science, Energy and Resources but including Small Business. However, an amendment was made on 12 May 2021 transferring responsibility for Small Business to the Senate Economics Legislation Committee.
Machinery of government changes
1.6
On 18 March 2021, amendments were made to the Administrative Arrangements Order (AAO), which also incorporated amendments made on 5 March 2020. The changes relevant to the portfolio responsibilities of the committee included:
transferring responsibility for deregulation from the Department of Education, Skills and Employment portfolio to the Department of the Prime Minister and Cabinet; and
transferring responsibility for the coordination of youth affairs function from the Department of Health portfolio to the Department of Education, Skills and Employment.
Annual reporting requirements
1.7
Annual reporting requirements for non-corporate and corporate Commonwealth entities are set out in section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Annual reporting requirements for Commonwealth companies can be found in section 97 of the PGPA Act.
1.8
The Public Governance, Performance and Accountability Rule 2014 (PGPA Rule), established under the PGPA Act, details the requirements for corporate plans and annual performance statements. Specifically, sections 16E and 16F for Commonwealth entities and section 27A for Commonwealth companies.
1.9
In addition to legislative requirements, the Department of Finance (Finance) provides Resource Management Guides (RMGs) for Commonwealth entities which provide further detail on the content requirements for annual reports under the Commonwealth Performance Framework. Material available from the Finance website includes the following guides which apply to the reports being examined:
Annual performance statements for Commonwealth entities: Resource Management Guide No. 134;
Annual reports for non-corporate Commonwealth entities: Resource Management Guide No. 135;
Annual reports for corporate Commonwealth entities: Resource Management Guide No. 136;
Annual reports for Commonwealth companies: Resource Management Guide No. 137;
Commonwealth entities Executive Remuneration Reporting Guide for Annual Reports: Resource Management Guide No. 138; and
Commonwealth companies Executive Remuneration Reporting Guide for Annual Reports: Resource Management Guide No. 139.
PGPA Act bodies
1.10
The PGPA Act categorises bodies as Commonwealth entities and Commonwealth companies as detailed below:
Non-corporate Commonwealth entity—an entity that is legally and financially part of the Commonwealth, and includes departments of state, parliamentary departments, statutory authorities, and listed entities (a body, person, group of persons or organisation that is prescribed by rules made under the PGPA Act);
Corporate Commonwealth entity—a body corporate that has a separate legal personality from the Commonwealth and includes certain statutory authorities. It can act in its own right to exercise certain legal rights such as entering into contracts and owning property; and
Commonwealth company—a company established by the Commonwealth under the Corporations Act 2001 that is controlled by the Commonwealth.
Reports examined
1.11
In accordance with Standing Order 25(20)(f), the committee examined annual reports tabled between 1 May and 31 October 2021. The annual reports examined in this report are categorised as follows:
Non-corporate Commonwealth entities:
Asbestos Safety and Eradication Agency;
Attorney-General's Department;
Australian Building and Construction Commission;
Australian Research Council;
Australian Skills Quality Authority;
Department of Education, Skills and Employment;
Fair Work Ombudsman and Registered Organisations Commission Entity;
Seafarers Safety, Rehabilitation and Compensation Authority;
Tertiary Education Quality and Standards Authority.
Corporate Commonwealth entities:
Australian Curriculum, Assessment and Reporting Authority;
Australian National University;
Coal Mining Industry (Long Service Leave Funding) Corporation; and
Commonwealth companies:
Australian Institute for Teaching and School Leadership.
Reports not examined
1.12
The committee is not obliged to report on Acts, statements of corporate intent, surveys, policy papers, budget documents or corporate plans. Where a report is referred to two standing committees, the committee has deferred examination of those reports to the committee which has primary oversight of the portfolio where the department or agency sits. Accordingly, the following documents were referred to the committee but not examined for the purposes of this report:
Australian Building and Construction Commission—Performance of the functions and the exercise of powers of the Australian Building and Construction Commissioner—Quarterly report for the period 1 January to 31 March 2021; and
Australian Building and Construction Commission—Performance of the functions and the exercise of powers of the Australian Building and Construction Commissioner—Quarterly report for the period 1 April to 30 June 2021.
Timeliness
1.13
As part of its review of annual reports, the committee is required to investigate and report on any lateness in the presentation of annual reports. In assessing the timeliness of the presentation of annual reports, the committee assesses the presentation against the requirements of the PGPA Act, the PGPA Rule, and other legislative requirements.
Presentation to ministers
1.14
Section 46 of the PGPA Act requires Commonwealth entities, both corporate and non-corporate, to prepare annual reports and for such reports to be provided to the responsible Minister by the fifteenth day of the fourth month after the end of the reporting period for the entity. Certain agencies, however, may have a specific date stipulated by their enabling legislation.
1.15
For Commonwealth companies, the deadline for providing the report to the responsible Minister is stipulated under section 97 of the PGPA Act, namely four months after the end of the company's reporting period.
1.16
All annual reports requiring examination by the committee were presented to the relevant Ministers in a timely manner.
Tabling in Parliament
1.17
According to the Finance RMGs, entities are expected to table their annual reports prior to Senate estimates hearings held in October. The committee encourages Commonwealth entities to table their annual reports prior to those hearings in order to assist the committee's scrutiny of estimates.
1.18
Appendix 1 includes information regarding the date each annual report was:
submitted to the responsible Minister;
first sighted by the responsible Minister; and
tabled (or presented) in both Houses of Parliament.
1.19
The committee thanks all portfolio entities for submitting their annual reports to the responsible Minister by 15 October 2021 or otherwise seeking an extension.
Senate debate
1.20
Senate Standing Order 25(20)(d) requires the committee to take into account any relevant remarks about the reports made in debate in the Senate. The committee notes that the annual reports examined in this report have not been the subject of comments or debates in the Senate.
Bodies not presenting annual reports to the Senate
1.21
The committee is required to report to the Senate on whether there are any bodies which should have presented an annual report to the Senate but did not. The committee is satisfied that all bodies have presented their annual reports in a timely manner.
Method of assessment and general comments on reports
1.22
Senate Standing Order 25(20)(a) requires 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 relevant requirements.
1.23
All reports presented to the committee by departments and agencies met the requirements specified in the relevant PGPA Rule. Accordingly, the committee considers all reports to be 'apparently satisfactory'.
1.24
However, the committee notes that some agencies had incorrect or incomplete page references in their compliance indexes. The committee also notes that some reports indicated large page ranges for some references.
1.25
The committee considers that providing accurate page references for all relevant PGPA Rule requirements will improve the overall accessibility of agency annual reports with respect to their compliance reporting.