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, the Environment and Water portfolio and the Communications and Arts portfolio. This report examines annual reports tabled between 1 May and 31 October 2023.[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 May and 31 October 2023.[5]

Non-corporate Commonwealth entities

Department of Climate Change, Energy, the Environment and Water – Annual Report 2022-23;

Department of Infrastructure, Transport, Regional Development, Communications and the Arts – Annual Report 2022-23;

Australian Communications and Media Authority and Office of the eSafety Commissioner – Annual Report 2022-23;

Bureau of Meteorology – Annual Report 2022-23;

Clean Energy Regulator – Annual Report 2022-23;

Climate Change Authority – Annual Report 2022-2023;

Great Barrier Reef Marine Park Authority – Annual report 2022-23; and

North Queensland Water Infrastructure Authority – Annual Report 2022‑23.[6]

Corporate Commonwealth entities

Australian Broadcasting Corporation – Annual Report 2023;

Australia Council for the Arts – Annual Report 2022-23;[7]

Australian Film, Television and Radio School – Annual Report 2022-23;

Australian Institute of Marine Science – Annual Report 2022-23;

Australian National Maritime Museum – Annual Report 2022-23;

Australian Postal Corporation – Annual Report 2023;

Australian Renewable Energy Agency – Annual Report 2022-2023;

Clean Energy Finance Corporation – Annual Report 2022-23;

Director of National Parks – Annual Report 2022-23;

National Film and Sound Archive – Annual Report 2022-23;

National Gallery of Australia – Annual Report 2022-23;

National Library of Australia – Annual Report 2022-23;

National Museum of Australia – Annual Report 2022-23;

National Portrait Gallery of Australia – Annual Report 2022-23;

Murray Darling Basin Authority – Annual Report 2022-23;

Screen Australia – Annual Report 2022–23;

Special Broadcasting Service – Annual Report 2023; and

Sydney Harbour Federation Trust – Annual Report 2022-23.

Commonwealth companies

NBN Co Limited – 2023 Annual Report; and

Snowy Hydro Limited – Annual Report for the year ended 30 June 2023.

Statutory office holders or bodies

Australian Energy Infrastructure Commissioner – Annual Report 2022;

Classification Board and Classification Review Board – Annual Reports

2022-23; and

Inspector General of Water Compliance – Annual Report 2022-23.[8]

Reports not examined

1.6The committee is not obliged to report on Acts, statements of corporate intent, surveys, policy papers, budget documents, corporate plans or errata. The following documents were referred to the committee between 1 May and 31October 2023, but are not examined in this report:

Wet Tropics Management Authority Annual Report 2022-23;

State of the Wet Tropics 2022-23;

Snowy Hydro Limited FY 2023 Diversity and Inclusion Report;

Addendum to the 2022-23 DCCEEW Annual Report;

Quarterly Update of the National Greenhouse Gas Inventory;

2023 Emissions Projections Report;

Climate Change Authority 2023 Annual Progress Report;

Annual Climate Change Statement 2023;

Offshore Electricity Infrastructure Act 2021 – Registrar’s report 2022-2023;[9] and

Australian Broadcasting Corporation Diversity and Inclusion Annual Report 2022-23.

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).[10]

1.8The PGPA Act requires all Commonwealth entities to prepare an annual performance statement and include those statements in their annual reports.[11] 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.[12]

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.[13] 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

1.11The 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.[14]

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.[15]

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.[16] 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.[17]

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 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.[18]

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 1901 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.[19]

Timeliness of reports examined

1.16In its Annual reports (No. 1 of 2023) tabled on 5 May 2023, the committee noted that 35 entities tabled their annual reports prior to the commencement of the second round of budget estimates for 2022 held in late October-November 2022, and 5 entities did not meet the recommended timeframe.[20]

1.17The committee notes that for the current reporting period, 18 entities tabled annual reports before the relevant budget estimates hearing commenced, and 18 entities did not meet the recommended timeframe. This issue is discussed below from paragraph 1.28.

1.18The following agencies tabled annual reports in the House of Representatives and/or the Senate before the committee's supplementary budget estimates hearings which commenced on 23 October 2023 for Climate Change, Energy, the Environment and Water portfolio entities, and 24 October 2023 for Communications and Arts portfolio entities:

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

Department of Infrastructure, Transport, Regional Development and Communications;

Australian Broadcasting Corporation;

Australian Energy Regulator;

Australian Communications and Media Authority and the Office of the eSafety Commissioner;

Australian Energy Infrastructure Commissioner;

Australian Institute of Marine Science;

Australian Postal Corporation;

Australian Renewable Energy Agency;

Bureau of Meteorology;

Clean Energy Finance Corporation;

Clean Energy Regulator;

Climate Change Authority;

Great Barrier Reef Marine Park Authority;

NBN Co Limited;

Snowy Hydro Limited; and

Special Broadcasting Service Corporation.

Sydney Harbour Federation Trust.

1.19The following agencies did not table their annual reports in either chamber of Parliament until after the commencement of the committee's supplementary budget estimates hearings:

Australia Council for the Arts;

Australian Film, Television and Radio School;

Australian National Maritime Museum;

Bundanon Trust;

Classification Board and Classification Review Board;

Creative Partnerships Australia Ltd;

Director of National Parks;

Inspector General of Water Compliance

Murray Darling Basin Authority;

Museum of Australian Democracy;

National Archives of Australia;

National Film and Sound Archive of Australia;

National Gallery of Australia; and

National Library of Australia;

National Museum of Australia;

National Portrait Gallery of Australia;

North Queensland Water Infrastructure Authority;

Screen Australia;

1.20The late tabling of annual reports is discussed in paragraphs 1.28–1.29.

1.21Appendix 1 lists the annual reports tabled (or presented) in the House of Representatives and the Senate between 1 May and 31 October 2023, which were referred to the committee, with relevant tabling dates. For the purposes of the committee's examination of timeliness, the earlier date 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.

1.22The Committee’s Report on Annual Reports (No. 2 of 2023) noted delays in the tabling of the Bundanon Trust 2021-22 annual report. The Trust attributed this delay to the Australian National Audit Office (ANAO) not completing its audit of the Trust’s financial accounts within the required timeframe. The delayed 2021-22 report confirmed that the ANAO’s Independent Auditor’s Report, which is relied on to complete an agency’s annual report, was completed late.[21]

1.23On 14 December 2023, the Bundanon Trust wrote to inform the Committee that the Trust was experiencing similar delays in completing its 2022-23 annual report. According to the Trust, the delays in tabling the 2022-23 annual report have again been because of the length of time required by the ANAO to settle its audit of financial statements.

1.24The Bundanon Trust 2022-23 annual report was tabled in the Senate and House of Representatives on 7 February 2024. The committee recently wrote to the ANAO seeking an explanation for the delay in its audit of the Bundanon Trust financial statements. This matter will be examined further in a future committee report.

Senate debate

1.25In accordance with standing orders, the committee is required to take into account any relevant remarks about annual reports made in debate in the Senate.[22] None of the annual reports examined in this report were the subject of Senate debate.

Non-reporting bodies

1.26Standing orders require that the committee report on any bodies which do not present annual reports to the Senate but should present such reports.[23] The committee notes that there are no relevant bodies which are required to present an annual report to the Senate which have not done so.

Apparently satisfactory

1.27Standing orders require that the committee report to the Senate on whether the annual reports of departments and agencies in its portfolios are 'apparently satisfactory'.[24] In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.

1.28The committee notes that approximately half of the agencies met the recommended timeframe for tabling annual reports prior to the commencement of the committee's supplementary budget estimates hearings. Conversely, approximately half of all agencies did not meet the recommended timeframe.

1.29The committee strongly encourages all Commonwealth entities to follow best practice in future by tabling their annual reports prior to its supplementary budget estimates hearings. This will ensure that there is sufficient time for the committee to consider the content and performance information provided in annual reports prior to the commencement of its estimates hearings.[25] Tabling annual reports on the first day of estimates or after the commencement of estimates does not provide senators with sufficient time to analyse the detail contained within annual reports to enable them to effectively conduct the scrutiny and accountability processes of estimates. The committee will be writing to agencies which tabled late annual reports to ensure best practice in future.

1.30The 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 PGPA Rule[26] and where those requirements can be found in the annual report.

1.31The committee notes that some agencies had incorrect or incomplete page references in their compliance indexes. Similar to its previous annual report, the compliance index for the Clean Energy Finance Corporation included a column for page references, but few page references were actually provided.[27] The Australian Institute of Marine Science annual report lacked page numbering entirely.[28] Multiple agencies only listed single page references when multiple pages contained the information required for the checklist, including the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Screen Australia and the Australian Renewable Energy Agency.[29] The committee recommends including the table of the list of requirements as it appears in the PGPA Rule and providing accurate and specific page references, which will assist with assessing compliance and improve the overall accessibility of agencies' annual reports.

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

1.33The committee has examined all annual reports referred during the reporting period and considers that they are 'apparently satisfactory'.

Footnotes

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

[2]Department of Finance, Resource Management Guide No. 135: Annual reports for non-corporate Commonwealth entities, May 2023; Resource Management Guide No. 136: Annual report for corporate Commonwealth entities, April 2023; and Resource Management Guide No. 137: Annual reports for Commonwealth companies, May 2023.

[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 following reports were presented/tabled after 31 October 2023 in either chamber, and will be examined in the committee’s Annual Reports (No. 2 of 2024): Bundanon Trust, Inspector General of Water Compliance, and the National Archives of Australia.

[6]The North Queensland Water Infrastructure Authority ceased to exist as an agency in October 2023, with its functions being transferred to DCCEEW.

[7]As of 24 August 2023, the Australia Council of the Arts became Creative Australia.

[8]These statutory office holders and bodies are not included in the list of entities governed by the PGPA Act, and therefore the annual reports they tabled for 2022-23 have not been assessed against PGPA Act requirements.

[9]In December 2022, the General Manager of the National Offshore Petroleum Titles Administrator, who is a Senior Executive Service employee in the Department of Industry, Science and Resources (DISR), was appointed as the Offshore Infrastructure Registrar (registrar) under Offshore Electricity Infrastructure Act 2021 (the OEI Act) by the Secretary of DCCEEW. The OEI Act provides the legislative framework for licensing and regulation of offshore renewable energy infrastructure and offshore electricity transmission infrastructure in Commonwealth waters. The registrar has a range of functions under the OEI Act, including assessment of licence applications and providing advice and recommendations to the Minister for Climate Change and Energy, as decision maker. Under section 159 of the OEI Act, the registrar must, as soon as practicable after the end of each financial year, prepare and provide the Minister for Climate Change and Energy with a report on the registrar’s activities under the OEI Act during that year for presentation to parliament. This report is included in the annual report of the registrar’s department, that is DISR (see DISR, Annual report 2022-23, p. 170).

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

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

[12]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.

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

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

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

[16]PGPA Rule, sections 17AB, 17BC and 28C. See also Department of the Prime Minister and Cabinet, Guidelines for the Presentation of Documents to the Parliament, October 2022, pp. 4–5.

[17]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)).

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

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

[20]Reports that will be examined in the committee’s Annual Reports (No. 2 of 2024) have also been assessed for timeliness below.

[21]Environment and Communications Legislation Committee, Annual Reports (No.2 of 2023), p. 6.

[22]Standing Orders and other orders of the Senate, August 2018, standing order 25(20)(d).

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

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

[25]In 2024, budget estimates hearings are scheduled to commence on 28 May.

[26]For non-corporate Commonwealth entities, the table of the list of requirements is set out in Schedule 2 of the PGPA Rule where Section 17AJ(d) requires the table to be included in entities' annual reports as an aid of access. For corporate Commonwealth entities, the table is set out in Schedule 2A of the PGPA Rule and Section 17BE(u) requires the table to be included in entities' annual reports. For Commonwealth companies, the table is set out in Schedule 2B of the PGPA Rule and Section 28E(p) requires the table to be included in entities' annual reports.

[27]Clean Energy Finance Corporation, Annual Report 2022-23, pp. 178–181.

[28]Australian Institute of Marine Science Annual Report 2022-23, pp. 82–85.

[29]Department of Infrastructure, Transport, Regional Development, Communication and the Arts Annual Report 2022-23, pp. 268–278, Screen Australia Annual Report 2022-23, pp. 90–96, Australian Renewable Energy Agency Annual Report 2022-23, pp. 170–172.