Chapter 1


Chapter 1

Introduction

1.1        This is the Senate Finance and Public Administration Committee's (the committee) first report on annual reports for 2010. It provides an overview of the committee's examination of annual reports for the 2008–09 financial year tabled in the Senate between 1 May 2009 and 31 October 2009. Copies of this and other committee reports can be obtained from the Senate Table Office, the committee secretariat or online at: www.aph.gov.au/senate_fpa.

Terms of reference

1.2        Under Senate Standing Order 25(20) the annual reports of certain departments and agencies stand referred to committees for examination and assessment. Each 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.

Method of assessment

1.3        Senate Standing Order 25(20) requires that the committee examine reports referred to it to determine whether they are timely and 'apparently satisfactory'. In forming its assessment, the committee considers whether the reports comply with the relevant legislation and guidelines for the preparation of annual reports. The principal Acts which apply to departments, statutory agencies and authorities, and Commonwealth companies are:

  • Public Service Act 1999;
  • Parliamentary Service Act 1999;
  • Financial Management and Accountability Act 1997 (FMA Act); and
  • Commonwealth Authorities and Companies Act 1997 (CAC Act).

1.4        Statutory authorities report under their respective enabling legislation. For example, the Australian Electoral Commission reports under section 17 of the Commonwealth Electoral Act 1918.

1.5        The committee also assessed whether reports comply with the Requirements for Annual Reports: for Departments, Executive Agencies and FMA Act Bodies (the PM&C Guidelines), issued by the Department of the Prime Minister and Cabinet (PM&C) with the approval of the Joint Committee of Public Accounts and Audit. This is the authoritative source outlining the requirements for preparing and presenting annual reports for bodies prescribed under the FMA Act.[1] 

1.6        Commonwealth authorities and companies report under the CAC Act and thus have different reporting requirements.

1.7        The annual report of a Commonwealth authority must include a report of operations as set out in the Commonwealth Authorities and Companies (Report of Operations) Orders 2008,[2] financial statements and the Auditor-General's report on those financial statements.

1.8         Commonwealth companies must include in their annual report a copy of the company's financial report, director's report and auditor's report as required by the Corporations Act 2001.[3] Commonwealth companies that are wholly-owned by the Commonwealth must also supply any additional information or report required by the Finance Minister's Orders.

Reports examined

1.9        During the period between 1 May 2009 and 31 October 2009, 23 annual reports that were tabled in the Senate, or presented 'out of session' to the President of the Senate were referred to the committee for examination.

1.10      Twelve annual reports and papers were received shortly thereafter, many including the Office of the Privacy Commissioner which is examined in the next chapter, tabled in the House of Representatives at an earlier date. 

1.11      The reports tabled are categorised as follows, and the tabling dates outlined in Appendix 5.

Departments of State

  • Department of Finance and Administration annual report 2008–09—pursuant to section 63 of the Public Services Act 1999;
  • Department of Human Services annual report 2008–09—pursuant to subsection 63 of the Public Service Act 1999;
  • Department of the Prime Minister and Cabinet annual report 2008–09—pursuant to subsection 63 of the Public Service Act 1999; and
  • Department of Climate Change annual report 2008-09—pursuant to subsection 63 of the Public Service Act 1999.

Departments of Parliament

  • Department of Parliamentary Services—annual report and Financial Statements 2008–09—pursuant to paragraph 65(1)(c) of the Parliamentary Service Act 1999 and subsection 65(3) of the Parliamentary Services Act 1999; and
  • Department of the Senate— annual report for 2008–09—pursuant to section 65 of the Parliamentary Service Act 1999.

Statutory agencies or authorities

  • Australian Electoral Commission—annual report 2008–09—pursuant to section 17 of the Commonwealth Electoral Act 1918;
  • Australian National Audit Office—annual report 2008–09—pursuant to section 28 of the Auditor-General Act 1997;
  • Australian Reward Investment Alliance—annual report 2008–09—Section 162 of the Superannuation Act 1976, section 28 of the Superannuation Act 1990 and section 26 of the Superannuation Act 2005;
  • Centrelink—annual report 2008–09—pursuant to subsection 40(1) of the Commonwealth Services Delivery Agency Act 1997;
  • Commissioner for Superannuation—annual report 2008–09—pursuant to section 162 of the Superannuation Act 1976 and section 21 of the Papua New Guinea (Staffing Assistance) Act 1973;
  • Commonwealth Ombudsman—annual report 2008–09—pursuant to sections 19(1) and 19F(3) of the Ombudsman Act 1976;
  • Future Fund—annual report 2008–09—pursuant to section 81 of the Future Fund Act 2006;
  • Medicare Australia—annual report 2008–09—pursuant to section 70(1) of the Public Service Act 1999;
  • National Archives of Australia and National Archives of Australia Advisory Council—annual report 2008–09—pursuant to section 70 of the Public Service Act 1999;
  • Office of the Official Secretary to the Governor-General—annual report 2008–09—pursuant to section 19(1) of the Governor-General Act 1974;
  • Office of the Privacy Commissioner [4]—annual report 2008–09— pursuant to section 97 of the Privacy Act 1988;
  • Office of the Renewable Energy Regulator—annual report 2008–09— pursuant to section 63 of the Public Service Act 1999;
  • Australian Institute of Family Studies—annual report 2008–09—pursuant to section 114LC of the Family Law Act 1975;
  • Office of the Inspector-General of Intelligence and Security—annual report          2008–09—pursuant to subsection 35 of the Inspector-General of Intelligence and Security Act 1986;
  • Old Parliament House—annual report 2008–09— pursuant to section 70 of the Public Service Act 1999; and
  • Australian Public Service Commissioner—Annual report 2008–09—Incorporating the annual report of the Merit Protection Commissioner—pursuant to section 44 of the Public Service Act 1999.

Commonwealth companies

  • ASC Pty Ltd Annual report 2008–09—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;
  • Australian Hearing Services—annual report 2008–09—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;
  • National Australia Day Council—annual report 2008–08—pursuant to subsection 36(4) of the Commonwealth Authorities and Companies Act 1997; and
  • Medibank Private Limited—annual report 2008–09—pursuant to Sections 9 and 36 of the Commonwealth Authorities and Companies Act 1997.

Reports not examined

1.12      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:

  • Members of Parliament (Staff) Act 1984—Report for 2008–09 on consultants engaged;
  • Australian Parliamentary Service Commissioner—Report for 2008–09—pursuant to subsection 42(1) of the Parliamentary Service Act 1999;
  • Auditor-General—Audit report no. 7 of 2008-09—Performance audit—Centrelink’s tip-off system;
  • ASC Pty Ltd Statement of Corporate Intent 2009-2012—Section 9 of the Commonwealth Authorities and Companies Act 1997; and
  • Electoral Reform Green Paper, Strengthening Australia's Democracy—September 2009.

Commonwealth authorities

  • Albury-Wodonga Development Corporation—Annual Report 2008–09—pursuant to section 32 of the Albury-Wodonga Development Act 1973; and
  • Australian Industry Development Corporation—Annual Report 2008—09—pursuant to section 9 of the CAC Act.

Other

  • Department of Finance and Deregulation—Campaign advertising by Australian government departments and agencies;
  • Department of Finance and Deregulation—Issues from the Advances Under the Annual Appropriations Act; and
  • Department of Finance and Deregulation— including Office of Evaluation and Audit (Indigenous Programs) report.

Non-reporting bodies

1.13      Standing Order 25(20)(h) requires that the committee inquire into, and report on, any bodies which do not present annual reports to the Senate but should present such reports. The committee continues to approach this by examining the Administrative Arrangements Order for the list of legislation administered by portfolio ministers and consequently, departments and agencies; and consulting the Department of Finance's listing of Australian Government Bodies.[5]

Timeliness

1.14      Most reports are required to be tabled in Parliament by 31 October each year unless another date is specified, for example, in an agency's legislation, charter and/or terms of reference. Commonwealth companies reporting under the CAC Act are required to provide an annual report to the responsible Minister four months after the end of the company's financial year.[6] It appears all annual reports submitted by Commonwealth companies in the committee's portfolio areas fulfilled this requirement.

1.15      The committee does note however, that even where companies submitted reports to the relevant Minister within the time limit, there is often a delay before the report is tabled in the Parliament.

1.16      Where a department or agency cannot meet its deadline for reporting, it must apply to the relevant minister for an extension.[7] Where an extension is granted, the minister must table in Parliament a copy of the application together with a statement specifying the length of the extension and the reasons for granting the extension. The committee is not aware of any extensions granted for this period.

1.17      For each report referred to it, the committee recorded the following dates:

  • submitted to minister;
  • received by the minister;
  • tabled in the Senate or presented to the President or a temporary chair of committees; and
  • tabling date in the House of Representatives, where applicable.

1.18      Commonwealth authorities are required to report by the 15th day of the fourth month after the end of the financial year, which for authorities reporting on a standard financial year basis would be October 15.[8]

Assessment of reports

1.19      In determining whether a report was satisfactory, the committee applied the PM&C Requirements for Annual Reports. In particular, to assess whether the reports adequately met reporting requirements, they were assessed against the checklist at Attachment F in the guidelines.

1.20      Where applicable, the committee paid particular attention to agencies reporting against outcomes as set down in their respective Portfolio Budget Statements and Portfolio Additional Estimates Statements. The committee notes that the majority of agencies report performance against outcome structures as set out in these documents.

1.21      The committee has found that all reports are 'apparently satisfactory'. However, certain aspects of the reports the committee scrutinised could be improved. These matters are discussed under the heading 'Selected Agencies' in the next chapter. The committee notes that all financial statements included in the reports received an unqualified report from the Auditor-General.

Senate debate

1.22      Few annual reports are debated in the Senate, but many remain on the Senate Notice Paper for future consideration. The committee is not aware of any Senate debates relating to the reports examined.

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