Chapter 1Introduction

1.1The Senate Environment and Communications Legislation Committee (the committee) is required under Senate Standing Orders to examine annual reports of entities within the Climate Change, Energy, Environment and Water portfolio and the Communications and Arts portfolio. This report examines annual reports tabled between 1 November 2023 and 30 April 2024.[1]

1.2Annual reports are a primary accountability mechanism. They inform the Parliament, stakeholders and other interested parties of the operations and performance of public sector departments, agencies and companies. Additionally, annual reports are important reference documents and form part of the historical record of the Commonwealth.[2]

Terms of reference

1.3Under standing orders, 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 the 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 the attention of the Senate to 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.[3]

Allocated portfolios

1.4In accordance with the resolution of the Senate on 27 July 2022, the committee is responsible for the following portfolios:

Climate Change, Energy, the Environment and Water; and

Infrastructure, Transport, Regional Development, Communications and the Arts (Communications and Arts functions only).[4]

Reports examined

1.5This report examines the following reports tabled in the Senate or presented out‑of-session to the President of the Senate and referred to the committee between 1 November 2023 and 30 April 2024.

Corporate Commonwealth entities

National Archives of Australia­­­ –­­­ Annual Report 2022-23.

Commonwealth companies

Bundanon Trust – Annual Report 2022-23.

Statutory office holders or bodies

Inspector-General of Water Compliance – Annual Report 2022-23.[5]

1.6Appendix 1 lists the annual reports examined in this report, with relevant tabling dates. For the purposes of the committee's examination of timeliness set out below, the earlier date in either the Senate or the House of Representatives is taken as the presentation date to the Parliament. The table also includes the dates the reports were submitted to, and received by, the relevant Minister.

Annual reporting requirements

1.7A performance reporting framework is established for all Commonwealth entities and companies by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The performance framework of the PGPA Act requires all Commonwealth entities to measure and assess their performance according to the requirements prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).[6]

1.8The PGPA Act requires all Commonwealth entities to prepare an annual performance statement and include the statement in their annual report.[7] Entities use the annual performance statements to report on the results achieved against the targets, goals and measures established at the beginning of a reporting year in corporate plans and in any portfolio budget statements that were prepared for the reporting period. The PGPA Rule contains the minimum requirements that must be included.

1.9Below is a summary of the legislative authority and requirements for the different types of bodies under which annual reports are prepared:

Non-corporate Commonwealth entities: PGPA Act, section 46, and the PGPA Rule, subdivision 3A(A); for portfolio departments, the Parliamentary Service Act 1999, section 65; and for statutory bodies, relevant enabling legislation.

Corporate Commonwealth entities: PGPA Act, section 46, and the PGPA Rule, subdivision 3A(B); and for statutory bodies, relevant enabling legislation.

Commonwealth companies: PGPA Act, section 97, which also refers to requirements under the Corporations Act 2001 and the PGPA Rule, part 3-3; and for statutory bodies, relevant enabling legislation.

Statutory office holders and statutory bodies: statutory office holders or bodies are engaged or employed under an Act, which may prescribe annual reporting requirements pursuant to the office or body.

Non-statutory bodies: the annual reporting requirements are contained in the government response to the Senate Standing Committee on Finance and Public Administration's Report on non-statutory bodies.[8]

Timeliness

1.10As part of its review of annual reports, the committee is required to investigate and report on any lateness in the presentation of annual reports.[9] In assessing timeliness, the committee examines the presentation against the requirements of the PGPA Act, the PGPA Rule and other legislative requirements.

Presentation to ministers

1.11The PGPA Act requires the provision of an annual report of a Commonwealth entity, including corporate and non-corporate entities, to the responsible minister by the 15th day of the fourth month after the end of the reporting period for the entity. For most agencies, this translates to 15 October each year. This part of the PGPA Act does not, however, provide a timeframe for the minister to present the report to the Parliament.[10]

1.12The arrangements for Commonwealth companies differ to some degree. The PGPA Act sets out the requirements for the provision of annual reports of Commonwealth companies to the responsible minister. In general, this amounts to four months after the end of the reporting period for each company.[11]

Tabling in Parliament

1.13The PGPA Rule states that annual reports for corporate Commonwealth entities, non-corporate Commonwealth entities and Commonwealth companies must comply with the Department of the Prime Minister and Cabinet's Guidelines for the Presentation of Documents to the Parliament (PM&C Guidelines).[12] In addition, the Department of Finance's resource management guides for corporate and non-corporate Commonwealth entities advise:

Normally annual reports are tabled on or before 31 October and it is expected annual reports are tabled prior to the October Estimates hearings. This ensures annual reports are available for scrutiny by the relevant Senate standing committee.[13]

1.14Entities reporting in accordance with their own legislation are often required to prepare for the relevant minister their annual report 'as soon as is practicable' after the end of the particular period to which the report relates. The committee draws attention to the Acts Interpretation Act 1901 (Acts Interpretation Act) which stipulates that where no date for providing a report to a minister is specified, the report should be provided no more than six months after the reporting period, and the minister must present the report to the Parliament within 15 days after the minister receives it.[14]

1.15Where a deadline for presenting an annual report cannot be met, a Commonwealth entity or company can seek an extension of time to report under the (Acts Interpretation Act) by advising the responsible minister of the reasons why the entity cannot comply with the deadline. The responsible minister is required to table this application and a statement specifying whether the extension was granted and the reasons for the extension in both houses of the Parliament.[15]

Timeliness of reports examined

1.16In its Annual Reports (No. 1 of 2024) tabled on 28 March 2024, the committee noted that half of the reporting entities tabled their annual reports prior to the first hearing for the relevant portfolio of Supplementary Budget Estimates 2023-24.[16] The relevant hearing date for entities under the Climate Change, Energy, the Environment and Water portfolio was 23 October 2023, and for entities under the Communications and the Arts portfolio it was 24 October 2023.

1.17The following entities examined in this report did not table their annual reports before 31 October 2023 as specified by the PM&C Guidelines:

Bundanon Trust;

National Archives of Australia; and

Inspector General of Water Compliance

Bundanon Trust

1.18Each year the annual report of the Bundanon Trust is referred to the committee for examination. On 6 November 2023, a letter was tabled in the Senate explaining that the Bundanon Trust had been granted an extension under Section 34C of the Acts Interpretation Act to provide its 2022-23 annual report by 30November 2023.[17] On 6 February 2024, a letter was tabled in the Senate explaining that the Bundanon Trust had been granted a further extensionto provide its annual report for 2022-23 by 31 January 2024.[18] The Bundanon Trust 2022-23 annual report was subsequently tabled in the Senate and House of Representatives on 7February 2024.

1.19In a letter dated 14 December 2023, the Bundanon Trust outlined its reasoning for the delays in the presentation of its annual report. It attributed these delays to the amount of time required by the Australian National Audit Office (ANAO) to finalise the audit of Bundanon Trust’s financial statements.

1.20On 25 March 2024, the committee wrote to the ANAO seeking an explanation regarding the delays in the tabling of the Bundanon Trust annual report.

1.21On 17 April 2024, the committee received a response from the ANAO, outlining its views on the cause of the delays in the tabling of the Bundanon Trust annual report. The ANAO stated that there were delays in the provision of information from Bundanon Trust, as well as delays in adjustments that were required to make Bundanon Trust’s financial report materially correct.

1.22The committee wrote a subsequent letter to the Bundanon Trust on 7 June 2024, reiterating the concerns raised by the ANAO, and reminding the Bundanon Trust of the importance of presenting annual reports in a timely manner.

1.23On 25June 2024, the Bundanon Trust responded, acknowledging the letter and stating that it has taken corrective actions along with retaining external expertise to assist it to prepare its FY 2023-24 financial statements. These various letters are reproduced in Appendix 2.

1.24The committee notes that the Bundanon Trust has identified the issues that caused the delays in the preparation of its annual report and are taking steps to resolve them. The committee encourages the Bundanon Trust to ensure that future annual reports are provided to the minister and tabled in the Senate within the timeframe required by the PGPA Act, and prior to the commencement of the committee’s Supplementary Budget Estimates hearings.

Inspector-General of Water Compliance

1.25The committee notes that Inspector-General of Water Compliance (IGWC) 2022‑23 Annual Report has not been tabled in either House of Parliament as of 12 August 2024. Under the Water Act 2007, the IGWC is required to produce an annual report as soon as practicable after the end of the financial year.[19] The report should then be presented to the Minister and published online. The Minister must then cause a copy of the annual report to be tabled in each House of the Parliament within 15 sitting days after the Minister receives the report.[20]

1.26Noting that the IGWC is a relatively new entity, the committee reminds the IGWC of its obligations under the Water Act 2007 to ensure that its annual report is transmitted to the Minister in a timely manner to ensure that it can be tabled in Parliament, preferably before the relevant Supplementary Budget Estimates hearings.

Senate debate

1.27In accordance with standing orders, the committee is required to take into account any relevant remarks about annual reports made in debate in the Senate.[21] None of the annual reports examined in this report were the subject of Senate debate.

Non-reporting bodies

1.28Standing orders require that the committee report on any bodies which do not present annual reports to the Senate but should present such reports.[22] The committee notes that aside from the Inspector-General of Water Compliance, all other relevant bodies which are required to present an annual report to the Senate have done so.

Apparently satisfactory

1.29Standing orders require that the committee report to the Senate on whether the annual reports of departments and agencies in its portfolios are 'apparently satisfactory'.[23] In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.

1.30All Commonwealth entities are encouraged to table their annual reports within the timeframe prescribed by the PGPA Act, and prior to the commencement of the committee’s November estimates hearings, which in 2024 begin on 4November. In particular, the committee reminds the Bundanon Trust to table future annual reports in a timely manner, and the IGWC to cause its report to be tabled, also in a timely manner.

1.31The committee reminds all agencies to ensure that they include a complete and accurate compliance index in their annual reports. For Commonwealth entities, this must include the table of the list of requirements as specified by the PGPARule and where those requirements can be found in the annual report.[24]

1.32The committee reminds all departments and agencies to ensure all requirements are met in sufficient detail to facilitate scrutiny and accountability. The committee will be thoroughly examining future annual reports for instances of non-compliance with the requirements of the PGPA Rule.

1.33Noting the shortcomings outlined above, the committee considers all annual reports examined in this report to be 'apparently satisfactory'.

Footnotes

[1]Standing Orders and other orders of the Senate, October 2022, standing order 25(20)(f). See also: Journals of the Senate, No. 2, 27 July 2022, p. 73.

[2]Department of Finance, Resource Management Guide No. 135: Annual reports for non-corporate Commonwealth entities, June 2024; Resource Management Guide No. 136: Annual report for corporate Commonwealth entities, June 2024; and Resource Management Guide No. 137: Annual reports for Commonwealth companies, June 2024.

[3]Standing Orders and other orders of the Senate, October 2022, standing order 25(20).

[4]Journals of the Senate, No. 2, 27 July 2022, p. 73.

[5]The Inspector-General of Water Compliance 2022-23 Annual Report has not been tabled in either Chamber of Parliament as of 12 August 2024. This is discussed at paragraph 1.25.

[6]Public Governance, Performance and Accountability Act 2013, section 38.

[7]Public Governance, Performance and Accountability Act 2013, section 39.

[8]Government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies, Senate Hansard, 8 December 1987, pp. 2632–45.

[9]Standing Orders and other orders of the Senate, October 2022, standing order 25(20)(c).

[10]Public Governance, Performance and Accountability Act 2013, section 46.

[11]Public Governance, Performance and Accountability Act 2013, subsection 97(2).

[12]PGPA Rule, rules 17AB, 17BC and 28C. See also Department of the Prime Minister and Cabinet, Guidelines for the Presentation of Documents to the Parliament, February 2017, pp. 4–5.

[13]Department of Finance, Resource Management Guide No. 135 – Annual Report for non-corporate Commonwealth entities, February 2022; Resource Management Guide No. 136 – Annual report for corporate Commonwealth entities, February 2022. In the case of a wholly owned Commonwealth company, or a Commonwealth company that is not required to hold an annual general meeting, the PGPA Act states that '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 responsible Minister must table the documents in each House of the Parliament as soon as practicable after the annual general meeting of the company' (Public Governance, Performance and Accountability Act 2013, subsection 97(5)).

[14]Acts Interpretation Act 1901, subsections 34C(2) and 34C(3).

[15]Acts Interpretation Act 1901, subsection 34C(6).

[16]For an assessment of the timeliness of all other 2022-23 annual reports referred to the committee, see pages 6 to 8 of the committee’s Annual Reports (No.1 of 2024).

[17]Journals of the Senate, No. 77, 6 November 2023, p. 2224.

[18]Journals of the Senate, No. 95, 6 February 2024, p. 2818.

[19]Section 215Y of the Water Act 2007 deals with the preparation, presentation and tabling of annual reports for the Inspector-General of Water Compliance.

[20]Water Act 2007, section 215Y.

[21]Standing Orders and other orders of the Senate, October 2022, standing order 25(20)(d).

[22]Standing Orders and other orders of the Senate, October 2022, standing order 25(20)(h).

[23]Standing Orders and other orders of the Senate, October 2022, standing order 25(20)(a).

[24]PGPA Rule, subrule 17BE(u).