Chapter 1


Chapter 1

Introduction

1.1        This is the Senate Finance and Public Administration Legislation Committee's (the Committee's) first report on annual reports for 2011. It provides an overview of the Committee's examination of annual reports for the 2009–10 financial year. 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.

Allocated portfolios

1.3        The Senate last amended the continuing order relating to the allocation of departments and agencies on 29 September 2010.[1] In accordance with that resolution, the Committee has responsibility for the oversight of the following:

  • Parliament;[2]
  • Prime Minister and Cabinet portfolio (including the Department of Regional Australia, Regional Development and Local Government); and
  • Finance and Deregulation portfolio.

1.4        As noted in the Committee's second report of 2010 (November 2010), with the release of the Administrative Arrangements Orders of 14 September 2010, the Offices for Sport and Arts were transferred to the Department of the Prime Minister and Cabinet from their respective portfolios. The Department of Regional Australia, Regional Development and Local Government was also established at this time within the Prime Minister and Cabinet portfolio.[3]

1.5        The changes to the Administrative Arrangement Orders have resulted in the annual reports of the following agencies coming within the oversight of the Finance and Public Administration Legislation Committee:

  • the Australian Sports Anti-Doping Authority, the Australian Sports Commission and the Australian Sports Foundation Ltd, all transferred from the Department of Health and Ageing;
  • the Australian Maritime Museum, Australian Television and Radio School, Screen Australia, Australia Council, National Film and Sound Archive, National Gallery of Australia, National Library of Australia, National Museum of Australia, Bundanon Trust and the Australian Arts Business Foundation, transferred from the former Department of Environment, Water, Heritage and the Arts; and
  • the National Capital Authority was transferred to the newly established Department of Regional Australia, Regional Australia and Local Government from the Attorney-General's portfolio.

1.6        The reports for all the agencies above have been received by the Committee and are discussed below.

Method of assessment

1.7        Annual reports provide one of the key mechanisms, together with the Estimates process, for scrutiny of the operations of Government. As stated in the Requirements for Annual Reports: for Departments, Executive Agencies and FMA Act Bodies, 'the primary purpose of annual reports of departments is accountability, in particular to the parliament'.[4]

1.8        Senate Standing Order 25(20) requires that the Committee examine reports referred to it to determine whether they are timely and 'apparently satisfactory'. The Committee must consider whether the reports comply with the relevant legislation and guidelines for the preparation of annual reports in forming its assessment. The principal legislation 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).

1.9        Statutory authorities report under their respective enabling legislation. For example, the Australian National Audit Office reports under section 28 of the
Auditor-General Act 1997.

1.10      The Committee also assesses whether reports comply with the Requirements for Annual Reports: for Departments, Executive Agencies and FMA Act Bodies (the PM&C requirements), issued by the Department of the Prime Minister and Cabinet (PM&C) with the approval of the Joint Committee of Public Accounts and Audit under subsections 63(2) and 70(2) of the Public Service Act 1999. This is the authoritative source outlining the requirements for preparing and presenting annual reports for bodies prescribed under the FMA Act.[5]

1.11      Commonwealth authorities and companies reporting under the Commonwealth Authorities and Companies Act 1997 (CAC Act) are required to comply with the Commonwealth Authorities and Companies (Report of Operations) Orders 2008.[6]

1.12      The Finance Minister has a role in the oversight of Commonwealth authorities that are also classified as a government business enterprise (GBE) as set out in the CAC Act. The annual reports of GBEs must provide an assessment of the entity's financial condition, dividends and community service obligations over the financial year.

Reports examined

1.13      As the federal election took place in 2010, the Committee has included reports tabled in the Senate or presented to the President of the Senate, and reports tabled in the House of Representatives between the period of 1 May 2010 and 31 October 2010 in this report. Thirty-four annual reports were therefore referred to the Committee by 31 October 2010 for examination.

1.14      The reports examined are categorised as follows:

Departments of State

  • Department of Finance and Deregulation—Report for 2009–10, including Office of Evaluation and Audit (Indigenous Programs) report for the period
    1 July to 14 December 2009—pursuant to section 63 of the Public Services Act 1999; and
  • Department of the Prime Minister and Cabinet—Report for 2009–10— pursuant to subsection 63 of the Public Service Act 1999.

Departments of Parliament

  • Department of Parliamentary Services—Annual Report 2009–10—pursuant to paragraph 65(1)(c) of the Parliamentary Service Act 1999 including the Annual Report of the Parliamentary Library pursuant to subsection 65(3) of the Parliamentary Services Act 1999; and
  • Department of the Senate—Annual Report 2009–10—pursuant to section 65 of the Parliamentary Service Act 1999.

Statutory agencies/authorities

  • Australian Institute of Family Studies—Annual Report 2009–10— pursuant to section 114LC of the Family Law Act 1975;
  • Australian National Audit Office—Annual Report 2009–10—pursuant to section 28 of the Auditor-General Act 1997;
  • Australian Reward Investment Alliance (ARIA)—Annual Report 2009–10—pursuant to section 162 of the Superannuation Act 1976, section 28 of the Superannuation Act 1990 and section 26 of the Superannuation Act 2005;
  • Commissioner for Superannuation (ComSuper)—Annual Report 2009–10—pursuant to section 162 of the Superannuation Act 1976 and section 21 of the Papua New Guinea (Staffing Assistance) Act 1973;
  • Future Fund Board of Guardians and Future Fund Management Agency—Annual Report 2009–10—pursuant to section 81 of the Future Fund Act 2006;
  • Inspector General of Intelligence and Security—Annual Report 2009–10—pursuant to subsection 35 of the Inspector-General of Intelligence and Security Act 1986;
  • National Archives of Australia and National Archives of Australia Advisory Council—Annual Report 2009–10—pursuant to subsection 70(1) of the Public Service Act 1999 and subsections 68(1) and 68(2) of the Archives Act 1983;
  • Office of the Privacy Commissioner–Operation of the Privacy Act—Annual Report 2009–10—pursuant to section 97 of the Privacy Act 1988;
  • Official Secretary to the Governor-General—Annual Report 2009–10—pursuant to section 19(1) of the Governor-General Act 1974;
  • Old Parliament House—Annual Report 2009–10—pursuant to section 70 of the Public Service Act 1999; and
  • Remuneration Tribunal—Annual Report 2009–2010—pursuant to subsection 12AA(2) of the Remuneration Tribunal Act 1973.

Commonwealth authorities/companies

  • Australia Business Arts Foundation Ltd—Financial Statements for the Year Ended 30 June 2010—pursuant to section 36 of the Commonwealth Authorities and Companies Act 1997;
  • Australian Council for the Arts—Annual Report 2009–10—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;
  • Australian Film, Television and Radio School—Annual Report 2009–10—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;
  • Australian Industry Development Corporation—Annual Report 2009–10—pursuant to section 36 of the Commonwealth Authorities and Companies Act 1997;
  • Australian National Maritime Museum—Annual Report 2009–10—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;
  • Australian River Company Ltd—Annual Report 2008–09—pursuant to section 36 of the Commonwealth Authorities and Companies Act 1997;
  • Australian Sports Commission—Annual Report 2009–10—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997 including the Australian Sports Foundation Ltd—Report for the year ended 30 June 2010—pursuant to section 36 of the Commonwealth Authorities and Companies Act 1997;
  • Bundanon Trust—Annual Report 2009–10—pursuant to section 36 of the Commonwealth Authorities and Companies Act 1997;
  • Medibank Private—Annual Report 2010—pursuant to sections 9 and 36 of the Commonwealth Authorities and Companies Act 1997;
  • National Australia Day Council Limited—Annual Report 2009–10—pursuant to subsection 36(4) of the Commonwealth Authorities and Companies Act 1997;
  • National Film and Sound Archive—Annual Report 2009–10—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;
  • National Gallery of Australia—Annual Report 2009–10—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;
  • National Library of Australia—Annual Report 2009–10—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;
  • National Museum of Australia—Annual Report 2009–10—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;
  • Parliamentary Service Commissioner—Report for 2009–10—pursuant to subsection 42(1) of the Parliamentary Service Act 1999;
  • Screen Australia—Annual Report 2009–10—pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997; and
  • Tuggeranong Office Park Pty Ltd—Special Purpose Financial Report for the period ended 25 June 2010.

Non-statutory Authority

  • Public Lending Right Committee—Annual Report 2009–10—pursuant to section 19 of the Public Lending Right Act 1985.

Reports not examined

1.15      The Committee is not obliged to report on Acts, statements of corporate intent, surveys, corporate plans or errata. The Department of Finance and Deregulation report Campaign Advertising by Australian Government Departments and Agencies—Full Year Report 2009–10 was referred to the Committee but not examined.

Reports held over

1.16      The following reports were tabled in Parliament after 31 October 2010. These reports will be examined in the Committee's second report on annual reports due to be presented to the Senate in August 2011:

  • Albury-Wodonga Development Corporation—Annual Report 2009–10 (presented 17 November 2010);
  • ASC Pty Ltd—Annual Report 2009–10 (tabled 23 November 2010);
  • ASC Pty Ltd—Statement of corporate intent 2010–13 (tabled 23 November 2010);
  • Australian Electoral Commission           —Annual Report 2009–10 (tabled 9 February 2011);
  • Australian Public Service Commissioner Report for 2009–10, incorporating the annual report of the Merit Protection Commissioner (presented 1 November 2010);
  • Australian Public Service Commissioner—State of the Service Report
    2009–10 (tabled 9 February 2011);
  • Australian Sports Anti-Doping Authority—Annual Report 2009–10 (tabled 24 November 2010);
  • Commonwealth Ombudsman—Annual Report 2009–10 (presented 1 November 2010);
  • Department of Finance and Deregulation—Consolidated financial statements for the year ended 30 June 2010 (presented 14 December 2010);
  • Department of Finance and Deregulation—Issues from the advances under the annual appropriations Acts (tabled 17 November 2010);
  • Freedom of Information Act 1982 (presented 20 December 2010);
  • Members of Parliament (Staff) Act 1984—Annual Report 2009–10 (tabled 23 November 2010); and
  • National Capital Authority—Annual Report 2009–10 (presented 16 November 2010).

Non-reporting bodies

1.17      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.

1.18      The Committee continues to approach this in two ways. First, the Committee examines the Administrative Arrangements Order for the list of legislation administered by portfolio ministers and consequently, departments and agencies. Second, the Committee consults the Department of Finance and Deregulation's listing of Australian Government Bodies. The list identifies the agencies that are required to report and the Acts under which they report.[7]

1.19      Based on the above checks, the Committee considers it has received all reports that it is required to receive.

Timeliness

1.20      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.[8] It appears all annual reports submitted by Commonwealth companies in the Committee's portfolio areas fulfilled this requirement. Ministers are required to table annual reports of companies as soon as practicable.

1.21      In the case of the Australian River Company Ltd, while the annual report was received by the relevant minister on 29 March 2010, that is within the required period, it was only presented to the President of the Senate on 20 August 2010. This was a delay of five months and the Committee considers that a greater effort should be made to ensure that annual reports received by ministers are provided to the Parliament promptly.

1.22      Where a department or agency cannot meet its deadline for reporting, it must apply to the relevant minister for an extension.[9] 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. On 15 November 2010, a statement from the Australian Sports Anti-Doping Authority requesting an extension to report was tabled in the Senate. The Authority indicated that the extension had been sought 'due to a delay in the completion of our annual financial statements and audit by the Australian National Audit Office, printing of the report will not be completed by the 31 October deadline'.[10] The Committee notes that the report was tabled in the Senate on 24 November and will be examined in report No 2 of 2011.

1.23      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.

1.24      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 15 October.[11]

Assessment of reports

1.25      The Committee determines whether the report of an agency satisfactorily meets reporting requirements by assessing against the PM&C requirements, in particular, the checklist at Attachment F in the requirements; its respective enabling legislation; and where necessary, the Corporations Act 2001.[12]

Senate debate

1.26      Few annual reports are debated in the Senate, but many remain on the Senate Notice Paper for future consideration. There are several reports on the Notice Paper, however the Committee is not aware of any Senate debates relating to the reports examined.

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