Review of selected reports

2.1        The committee has selected the annual reports of the following bodies for closer examination:

• Torres Strait Regional Authority
• Tiwi Land Council
• Northern Land Council
• Indigenous Land Corporation
• Australian Electoral Commission
• Australian Political Exchange Council

Torres Strait Regional Authority

2.2        The 2014-15 annual report of the Torres Strait Regional Authority (TSRA) is well presented and follows the annual reporting requirements of the Authorities Reporting Orders. The TSRA is established under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act), and has additional reporting requirements under section 144ZB of that Act. The report includes a comprehensive compliance index for the agency's annual reporting requirements under its guiding legislation, including the ATSI Act requirements, which is a useful inclusion.[1]

The Chairperson's and Chief Executive Officer's messages

2.3        In his introductory message, the Chairperson of the TSRA, Mr Joseph Elu AO, highlighted a number of achievements during 2014-15, including the following:

• a busy program of community engagement;
• a mid-term performance review of the TSRA board members required by the Board Charter;
• the TSRA Board Strategic Workshop, which included the provision of information on the changes to responsibilities and accountability following the commencement of the PGPA Act;
• running two economic development summits to help guide the creation of commercially viable industries to contribute to wealth creation for Torres Strait Islanders and Aboriginal people living in the Torres Strait region; and
• the purchase by the TSRA of the remaining non-Indigenous Transferable Vessel Holder licence to fish in the Torres Strait bêche-de-mer fishery in January 2015.[2]

2.4        The Chief Executive Officer (CEO), Mr Wayne See Kee, in his opening message noted progress in implementing policies and projects to achieve the outcomes identified in the Torres Strait Development Plan (TSDP).[3] During 2014-15 the TSRA mapped the outcomes of the TSDP to the five Indigenous Advancement Strategy program streams to demonstrate the strong alignment between the TSRA's programs and government policy.[4]

2.5        Mr See Kee also noted that the TSRA continued its community visit program to inform relevant communities of the role of the TSRA and of the changes to the Australian Government's Indigenous policies. Citing effective communication as a critical success factor for delivering outcomes in the region, he highlighted some new approaches to outreach in 2014-15 through establishing Facebook, Twitter and YouTube accounts, which he noted were particularly well received by young adults.[5]

2.6        The CEO also noted the adoption of a new approach of performance reporting which replaced the previous narrative style with a graphics-based 'digital dashboard' to highlight the status of projects at-a-glance. He noted that:

The new style of reporting has reduced the volume of reporting per quarter from over 100 pages to under 30 pages, while still covering project budget, schedule, quality, risk and outcomes using key performance indicators. There has been a significant improvement in the level of reporting, with a stronger strategic focus. A similar approach has been adopted for Section 2, Programme Performance in this annual report. This streamlined and simplified reporting format has been embraced by the TSRA’s Audit Committee and the Board members.[6]

Performance information

2.7        The annual report's performance section presents the agency's performance against both the key performance indicators (KPIs) as set out in the 2014-15 Prime Minister and Cabinet (PM&C) Portfolio Budget Statements (PBS) and the component programs set out the TSDP. In the committee's review of the TSRA's 2012-13 annual report it was critical of the structure of performance information which interspersed the PBS's KPI results with those of the TSDP.[7] The 2014-15 annual report groups the results for the KPIs from the PBS separately to those from the TSDP and in the order they appear in the PBS. The committee welcomes this approach which more readily facilitates a clear read between the results presented in the annual report and the measures set out in the PBS.

2.8        The report provides a general description of the agency's performance against each KPI, followed by a table of presenting more specific quantitative results which contributes to that KPI. These tables include results over multiple years, providing useful comparative information where available.

2.9        The TSRA has updated the KPIs for 2014-15. As in recent years, they continue to be quantitative in nature, but do not include a target. For example, the KPIs include:

Increase in the number of Torres Strait Islander and Aboriginal owned commercially viable businesses

Increased availability of approved business training

Number of endorsed community based management plans for the natural and cultural resources of the region being actively implemented[8]

2.10      The committee reiterates its view that the inclusion of a target for quantitative KPIs in the PBS provides a more robust model to measure whether a program's objective has been achieved.[9]

2.11      Performance information for component programs for the TSDP is set out in tabular format listing activities that comprise each program. It includes a coloured flag system indicating the project's progress, in addition to a description of the current status of each. Deliverables as presented in the PBS are listed for each component program.

Tiwi Land Council

2.12      The 2014-15 annual report of the Tiwi Land Council (TLC) is an informative document which satisfies the agency's reporting requirements. The TLC is established under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALR (NT) Act) and is required to present an annual report under section 37 of that Act. This section also prescribes a number of inclusions for the annual report. The TLC is a corporate Commonwealth entity and is required to report in accordance with the Authorities Reporting Orders.

2.13      The annual report includes compliance indexes for the Authorities Reporting Orders and the ALR (NT) Act requirements. Additionally, the report includes a compliance index to the Requirements for Annual Reports with page references for some applicable items.[10]

Chairman's report

2.14      The Chairman of the TLC, Mr Gibson Farmer Illortaminni, provides a forthright opening report which notes criticisms directed at the organisation from the media:

We keep getting hounded and trashed in the media by people who just don’t get it, people who would rather see us trying to exist on handouts, unable to read and write and in a spiral of welfare dependency, generation after generation. They say we don’t care about our environment.

Well, we’re not playing their game.

We are Tiwi. We are a proud people. We are the 'can do' people. We get knocked down, but we get up again! We’ll make mistakes and will continue to make mistakes, but it won’t stop us from trying. We’ll learn from those mistakes and become better and stronger for the effort. Our great leaders had the foresight to allocate up to 10% of our land for development to create real jobs and a real life for our people - and that’s the vision that our new wave of young leaders on our TLC Executive are committed to seeing through, while at the same time ensuring that we look after our land and our sea like we have for thousands of years.[11]

2.15      Mr Illortaminni also notes the retirement of two former Chairmen of the TLC, Mr Cyril Kalippa and Mr Robert Tipungwuti after decades of work for the people of the Tiwi Islands; and the longest serving CEO, Mr John Hicks. In particular, he highlighted achievements during their time with the TLC:

...they saw the development of our forestry industry and Port Melville, the establishment of Ranku community, Township Leasing at Wurrumiyanga, Milikapiti and Ranku as well as the Tiwi College, just to name a few outstanding achievements.[12]

Performance information

2.16      The TLC is not funded by direct appropriation and therefore is not required to prepare an agency statement for the PM&C PBS.[13] However, the annual report does note that the TLC has adopted KPIs which it advises integrate with the outcome budgeting and financial management process.[14] The report includes a discussion of the agency's principal outputs and activities contributing to these measures.

2.17      The report's summary of financial performance noted that the Council received approximately $2.179m in funding from the Commonwealth under section 64(1) of the ALR (NT) Act. It was also reported that expenditure was $27 875 below budget in 2014-15.[15]

Northern Land Council

2.18      The Northern Land Council (NLC) is established under the ALR (NT) Act and is also a Native Title Representative Body under the Native Title Act 1993. The NLC annual report is prepared in accordance with the Authorities Reporting Orders and has additional reporting requirements under section 37 of the ALR (NT) Act.  The 2014-15 annual report presents a clear account of the Council's responsibilities under its enabling legislation, provides an informative account of the year under review, and complies with applicable reporting requirements. The report includes compliance indexes for the Authorities Reporting Orders and the ALR (NT) Act which assisted in the examination of the report.[16]

Year at a Glance, and Chairman's and CEO's reports

2.19      The report includes a summary of the agency's highlights for 2014-15:

• advocating for Aboriginal interests to be recognised in regard to the issue of northern development;
• the delegation of some of the powers of the Full Council of the NLC to the Executive Council providing a more streamlined process for approval of some matters, such as section 19 land use agreements;
• implementation of improvements to the governance, financial and administrative systems, including establishment of a new audit committee;
• major progress on three long-standing claims under the ALR (NT) Act: Borroloola, Wickham River and Kenbi; and
• continued monitoring of the Northern Territory Government's management of the environmental problems at the McArthur River zinc-lead mine near Borroloola.[17]

2.20      The reports by the Chairman, Mr Samuel Bush-Blanasi, and CEO, Mr Joe Morrison, provide a forthright discussion of issues and events impacting on the NLC during the year. Both reports note the NLC's appearance before the Senate Finance and Public Administration Legislation Committee at estimates hearings on 27 February and 29 May 2015 at which the agency's financial accountability and governance arrangements were examined in detail.

2.21      At the hearing in February, the committee raised the findings of the Australian National Audit Office (ANAO) Report No. 16 of 2014-15 Audits of Financial Statements of Australian Government Entities for the Period Ended 30 June 2014, which found weaknesses in financial management processes of the NLC:

In 2011–12 the ANAO reported one moderate issue relating to weaknesses in financial management, including a lack of reconciliation and acquittal processes and the need to improve the management of monies due to the Council. In 2012–13 the ANAO identified that weaknesses in financial management reported in 2011–12 remained unresolved and there were also weaknesses in the Council’s financial statement preparation processes. In particular, a number of significant adjustments were required to the draft financial statements presented for audit and finalisation of the audit was delayed due to difficulties in obtaining information, the poor quality of reports and reconciliations, and delays in the responses to queries. As a result, this issue was reported as a significant audit finding in 2013–14.[18]

2.22      The NLC appeared before the committee again at the Budget Estimates hearing in May 2015, where Mr Morrison updated the committee on the reforms implemented to deal with the financial management issues identified:[19]

I acknowledge that our organisation has had financial management issues—that we have been late in filing annual reports and that our accounting and auditing processes have not been up to the mark. Mind you, having said that, the NLC received an unqualified audit last financial year. But I am not shirking my responsibilities when I say that we are dealing with legacy issues here. I am prepared to cop whatever criticism comes my way, but I do want to impress upon this committee that we have gone all out since we were here last, in February. There have been significant improvements in the financial auditing, compliance, management of risk and management across the organisation, including development of a corporate and strategic plan with our objectives and actions guided by the Northern Land Council's elected full council.

Processes are now in place to ensure that we meet annual reporting time lines and changes are now well embedded to improve our audit processes and procedures. We have engaged outside firms to provide advice and assistance to ensure that financial assistance and auditing processes are timely, comprehensive and accurate. We are well advanced in the development of new corporate governance policies, including: conflicts of interest, credit and debit card use, consultant engagement guidelines, procurement codes of conduct, and gifting and whistleblower provisions, including internal and external complaints systems. We have taken significant steps to resolve equity and ongoing concerns with issues around unfunded leave provisioning and a range of program overexpenditure, including the Jangala-Muckaty legal costs and the ABA debt.[20]

2.23      In the annual report, the CEO described the NLC's February appearance at the Additional Estimates hearing as a 'wake-up call' and describes the work done to address the issues raised in the ANAO report and at the estimates hearing:

In the months since, with assistance from the Department of the Prime Minister and Cabinet, we have worked tirelessly to implement significant improvements to our governance, financial, administrative and other systems. The Leadership Group has met several times to deal with those matters; a new audit committee has been appointed; BDO Financial Services have been hired to prepare the annual accounts; new staff, including a Chief Financial Officer, will be appointed by the end of the 2015 calendar year.

Within this short period, we have focused on much tighter financial management and budgetary control and I am proud to report that we have made significant improvements in our financial position. There are continuing reviews of all facets of operations across all NLC branches. Efficiencies and needs are being identified, and that information will be fed into future budget preparations.[21]

2.24      The committee commends the NLC for being up front about these challenging issues in the annual report and outlining the steps taken to improve financial and governance arrangements.

Performance information

2.25      The NLC is primarily funded through the Aboriginals Benefit Account and is not funded by direct appropriation. Therefore, like the TLC, the NLC is not required to prepare a statement for inclusion in the PM&C PBS,[22] which would include an agency's KPIs. However, the report provides a detailed summary of the year in review in relation to the NLC's achievements across seven key performance areas that align with the agency's seven goals.[23]

2.26      The report also includes a helpful discussion of the agency's financial performance in 2014-15, including a summary of sources of external funding and ongoing financial challenges. The NLC reported an operating surplus of $6 102 000[24] for 2014-15.

Indigenous Land Corporation

2.27      The Indigenous Land Corporation (ILC) is a corporate Commonwealth entity governed by the ATSI Act[25] and reports under section 46 of the PGPA Act and in accordance with the Authorities Reporting Orders. The report is an informative document and adequately meets the agency's reporting requirements.

2.28      The report includes the mandatory compliance index for the Authorities Reporting Orders which assisted with the examination of the report. However, it was noted that for Clause 18[26] of the Orders, concerning missing information from a subsidiary, the compliance index includes large page ranges: 42-56 and 83-156.[27] While the inclusion of a range of pages can be acceptable, it is preferable if more precise page references are included in the index to assist the reader to locate the relevant information more readily.

Chairpersons' reports

2.29      The 2014-15 annual report of the ILC includes a report from the outgoing Chairperson, Dr Dawn Casey PSM, and a statement from the new Chairperson Mr Eddie Fry.[28] Mr Fry's statement was forwarded to the Minister for Indigenous Affairs, Senator the Hon Nigel Scullion, under a letter of transmittal dated 22 January 2016, as an additional inclusion to the annual report which was earlier forwarded to the Minister by the former Chairperson, Dr Casey, with a letter of transmittal dated 21 September 2015. Mr Fry's letter also forwarding the annual report with his additional statement included advised:

The Board of the ILC has authorised me to include a statement from me as the Chair. The statement articulates how the Board will work with the Australian Government to deliver better outcomes for Aboriginal and Torres Strait Islander peoples in accordance with our legislative purpose.[29]

2.30      It is noted that the additional statement from the new Chairperson is loaded as a separate document on the ILC website, in addition to the annual report loaded which also contains the statement.[30]

2.31      In a media statement dated 19 April 2016, the Minister advised that he had asked the ILC to consider responding to what he believed were factual inaccuracies in the former Chairperson's report contained in the annual report. The Minister further advised that the ILC Board decided how it wished to respond and chose to add a statement to the annual report from the new Chairperson.[31]

2.32      The reasons for the inclusion of the additional statement from the new Chairperson in the annual report were examined in some detail at the Senate Finance and Public Administration Legislation Committee's Budget Estimates hearing on 5 May 2016. The committee's questions initially focussed on an internal board briefing paper dated 18 January 2016 which had been obtained through Freedom of Information (FOI). The document was read by Senator the Hon Penny Wong during the hearing:

The Office of the Minister for Indigenous Affairs, Senator the Hon Nigel Scullion, has advised the ILC's acting chief executive officer, Mr Leo Bator, that the minister will not agree to table the ILC annual report 14-15 in its current form, because the minister believes there are inaccuracies in Dr Casey's overarching report on the performance of the ILC, which forms a foreword to the report.[32]

2.33      Mr Bator advised the committee of the Board's approach in considering the former Chairperson's report and the briefing paper provided to it:

...in the context of the way that the board understood the paper written to them, they were quite aware of the fact that the minister was merely asking them to reflect on the statement of the previous chair and to make an informed judgement about the direction that they would want to take.

...

I would say that they were very mindful of the minister and of their responsibilities to the Aboriginal and Torres Strait Islander people. They were very mindful of their independent role, and they were also very mindful of governance arrangements. The conversation was a very robust conversation. They did not want to make changes to the document that was there—the previous foreword.

...

The minister very much knows that the board is an independent board. In fact, he raised it at a recent strategy meeting with them, so I do not think there is any doubt in anyone's mind about the independence of the board and their role and responsibilities. [33]

2.34      The Minister commented upon the board's briefing paper obtained under FOI and maintained that it was not an accurate reflection of the advice provided from his office:

All I am telling you is that neither I nor any of my staff sought to direct the ILC board to change the report or threaten not to table the report. I genuinely do not have anything else to say on that. That is my knowledge. I do not have any knowledge of what happened within the ILC, who drafted the documents. They are the facts of the matter. I did not and nor did any of my staff indicate that it would not be tabled unless they made the changes. We cannot make that direction.[34]

2.35      The Minister also outlined for the committee what he considered were inaccuracies in the former Chairperson's report:

It was not so much what was inaccurate but the way it was put. There was a statement around a senior counsel or a QC or some sort of advice they had received that was not in the board that inferred a whole range of things about decisions that had been made. There was no reference that three reviews had actually been conducted, and all three reviews had not met what the previous chair had wanted. But none of that was in the report, and yet she was able to make allegations: 'We won't have a review.' It was completely one-sided and was not an accurate reflection of what had gone on.[35]

2.36      The Minister had also earlier clarified the advice his office provided to the ILC in a media statement on 19 April 2016:

I did not direct the ILC make changes to the report. Nor do I have the authority to do so.

What I did was ask the ILC Board to consider responding to factual inaccuracies in the statement from the former Chair contained in the annual report. It is completely appropriate for me to bring to the attention of the ILC Board these inaccuracies.

The ILC Board, of its own volition, decided how it wished to respond – and decided to add a statement to the annual report from the current Chair, Mr Eddie Fry. There were no other changes made to the report.

The documents obtained by the former Chair under Freedom of Information include internal communication between ILC staff and draft documents produced by ILC staff. These documents were drafted without the knowledge of myself, my office or the ILC Board.

These documents do not accurately reflect that I only requested that the ILC Board consider how it might respond to the inaccuracies in the former Chair’s statement.[36]

2.37      At the Budget Estimates hearing, the Minister confirmed to the committee that he would have tabled the annual report even if the additional statement was not put in.[37]

2.38      The committee notes section 191L of the ATSI Act which sets out the powers of the Minister in relation to the ILC:

Except as expressly provided in this Act or the Public Governance, Performance and Accountability Act 2013, the Minister is not empowered to direct the Indigenous Land Corporation in relation to any of its activities.[38]

2.39      The committee acknowledges the statements made by the Minister that there was no direction to the ILC to change the report before he would agree to present it to the Parliament. The committee notes the importance of the Executive respecting the proper processes of independent statutory bodies acting within their legislative framework.

2.40      Notwithstanding the controversy which resulted in the inclusion of a report from the former Chairperson and a statement from the new Chairperson in this year's annual report, their introductory remarks did provide a summary of achievements in 2014-15 and highlighted priority issues for future focus. One issue which was raised by both was the level of return from the ATSI Land Account (the revenues of which fund the ILC) investments in order to maintain a capital balance to sufficiently meet future demands on the ILC. The new Chairperson, Mr Fry, outlined his intention to discuss with the Minister for Indigenous Affairs and the Minister for Finance a strategy to achieve a higher rate of return which is benchmarked to returns achieved by the Future Fund.[39] Also addressing this issue, the former Chairperson, Dr Casey proposed legislation to broaden the investment parameters of the Land Account to enable the capital balance to grow in real terms and provide more revenue, advising that:

It is estimated that over the last ten years the Land Account would be around $450 million better off if its investments had not been largely confined to bank deposits and government bonds.[40]

2.41      Dr Casey also proposed the transfer of the management of the Land Account to the Future Fund Management Agency. The committee will follow with interest developments on this issue.

Performance information

2.42      The performance information in the ILC annual report for 2014-15 is clearly presented. The ILC performance information as set out in the PM&C PBS for 2014-15 includes seven KPIs and five deliverables which include targets. The report clearly presents a summary of the results in tabular format against each measure as set out in the PBS ensuring a clear read between the documents. The tables include the target for 2014-15 and results as well as forward estimates until 2018-19.[41]

2.43      The results for 2014-15 include four of the five deliverables achieved and five of the seven KPIs achieved, including the result for KPI no. 6 (proportion of ILC-assisted projects that protect cultural and environmental heritage values or maintained culture) only one percentage point below the target. It is also noted that some performance measures that were achieved in 2014-15, exceeded the target considerably. For example, some notable results were for:

• KPI no. 3 (Total number of Indigenous employment outcomes enabled through ILC land acquisition and land management projects) where 902 was achieved against a target of 500;
• KPI no. 4 (Total number of Indigenous training outcomes enabled through ILC land acquisition and land management projects) where 2677 was achieved against a target of 1000;
• Deliverable 4 (Regional land management projects implemented) where 25 was achieved against a target of 15; and
• Deliverable 5 (Property-based, property planning land management projects assisted) where 154 was achieved against a target of 60.[42]

2.44      The accompanying discussion on each measure in the performance section of the report provides useful detail on the activities which contributed to achieving outcomes and includes an explanation where there was a shortfall for some measures. This section also includes six one-page program highlights which illuminates in more detail particular initiatives by the ILC. These offered further insight into some of the broad range of activities but were not excessive in length.[43]

2.45      The report provides an overview of financial results for 2014-15. It was noted that the balance of the Land Account at 30 June 2015 was $2.015 billion, and funding from the Land Account in 2014-15 was $49.9 million.[44] In regard to the Ayers Rock Resort, it was reported that the fair value asset was assessed to be $248 million (compared to the purchase price for in excess of $300 million in 2010-11), representing a fair value increase of $23 million against the previous impairment and that the accumulated impairment loss was $62 million.[45]

Australian Electoral Commission

2.46      The Australian Electoral Commission (AEC) is a non-corporate Commonwealth entity and prepares its annual report in accordance with section 46 of the PGPA Act, section 70 of the Public Service Act 1999, the Requirements for Annual Reports, and section 17 of the Australian Election Act 1918. The AEC's report adequately meets its annual reporting requirements.

2.47      The report includes the compliance index for the Requirements for Annual Reports and it is noted that the AEC has complied with 'suggested' as well as 'mandatory' items.[46] It also contains a comprehensive glossary which includes acronyms and abbreviations as well as a useful list of terminology related to electoral processes.[47]

2.48      A particularly useful feature of the online version of the report was the inclusion of hyperlinks throughout the report for navigating to various items and sections within the report and to external websites.

2.49      The report included five case studies, of two pages in length, which highlighted in more detail some aspects of the AEC's work over the year in review. While the committee has previously noted that voluminous additional inclusions to the core requirements for annual reports should be avoided, the inclusion of five is an appropriate addition in this instance to highlight new and varied initiatives of the AEC.

Commissioner's review

2.50      Mr Tom Rogers was appointed as the Electoral Commissioner during the reporting year (December 2014), having acted in that position since February 2014. The report included a review by the Commissioner which described the agency's recovery from 'one of the most tumultuous periods in the history of the AEC'.[48] Mr Rogers described the agency's 'change journey' and its focus on improving the long-term planning, preparation and delivery of federal elections.

2.51      As noted above, the 2014-15 year follows a difficult period in the AEC's history following the loss of 1370 Senate ballot papers in Western Australia in the 2013 federal election and subsequent requirement to hold a fresh Senate election in that State. It was described by the Commissioner in last year's annual report as the most difficult period in the AEC's history.[49] Following these events and the findings of the inquiry into the incident by Mr Mick Keelty AO, the AEC proceeded to implement the inquiry's recommendations and embarked on a far-reaching overhaul of its policies and processes. This year's report notes that the agency has made enormous strides in this 'change journey'. The Commissioner notes in his review that:

While some of the more significant changes may not be in full operation at the next federal election, each will contribute to the AEC's long term goal of re-establishing its reputation for delivering trusted, consistently reliable, high quality and high integrity electoral events and services.[50]

2.52      The review included a diagram representing the AEC core values: electoral integrity through quality, agility and professionalism. The values are supported by ballot paper principles and the 'every task matters' principle.[51] The Commissioner noted the agency's ongoing commitment to its core values and that a number of changes have been implemented to reinforce these values and principles, particularly in the areas of governance and oversight:

We are committed to the continuous improvement of our governance arrangements so that I and the rest of the Executive Leadership Team have an appropriate level of visibility across the agency, to ensure operational compliance and to enhance oversight of election planning and preparation. We are now building on these improvements by creating a governance structure centred on a suite of decision-making committees that have more formalised and focused roles, along with discussion forums to encourage open communication across the agency.[52]

2.53      The Commissioner also commented on the organisation's work throughout 2014-15 to ensure election readiness. This included the development and continued implementation of a unified election readiness framework to drive quality election planning and ensure preparations are comprehensive and professional. The AEC also continued to review internal procedures and service delivery with a focus on electoral policy and procedure.[53]

2.54      The Commissioner notes that the 2016 federal election will be the first opportunity for the AEC to publicly demonstrate its progress on its 'change journey' and he advised that they there would be a continued focus on:

...improving the processes that guide our service delivery, monitoring our performance, ensuring accountability and steering our agency towards the delivery of trusted, consistently reliable electoral events.[54]

Performance information

2.55      The annual report's performance information is comprehensive and clearly presented. The results for KPIs are set out in tables with results against KPIs presented over three years for comparative purposes. The KPIs in the annual report generally follow those set out by the AEC in the Finance Portfolio PBS for 2014-15. The KPIs are a mix of qualitative and quantitative measures with targets, providing a good base on which to measure the agency's progress in meeting its program objectives.[55] The AEC's deliverables are presented in an abbreviated form in the 'Outcome and programme structure' section of the report, and the performance section broadly includes discussion of achievement of the deliverables. Performance reporting was also supported by the inclusion a range of tables and graphs to assist in the presentation of data.

2.56      Where applicable,[56] all KPIs except for two were achieved for 2014-15. For the two KPIs which were not met during the year, the report included an explanation of the shortfall. These KPIs related to electoral education programs which are in transition or ceasing. Only 57 462 students were reached by the Get Voting website as opposed to the target of 100 000 participants for AEC education outreach services. It was explained that the School and Community Visits Program ceased and outreach activities are in transition to develop greater online delivery. The result for the KPI concerning the number participants in teacher professional development sessions was 65 teachers nationally as opposed to the target of 1200 participants. It was noted that the delivery of the Professional Learning program ceased, to allow for redevelopment, including a pilot program concentrating on fully-qualified teachers working in schools, rather than students studying teaching.[57]

2.57      A performance highlight for 2014-15 was the achievement of an increase in the enrolment rate by 0.9 percentage points, taking the enrolment to 93.2 per cent of eligible voters and representing an increase of 336 233 Australians enrolled. The target for this KPI is an 'increase in enrolment towards 95% of eligible people on the electoral roll'. It was also noted that during the same period there was a decline in the number of eligible Australians who were not enrolled – from 1.2 to 1.1 million. The report notes that the pleasing result for 2014-15 represents a reverse in the long-term trend of declining enrolment.[58]

2.58      The report provided a brief summary of the AEC's financial performance in 2014-15. The agency recorded an operating deficit of $0.4 million in 2014-15 including depreciation. This compared to an operating surplus of $11 million in 2013-14 which it explained was influenced by an amount of quarantined appropriation.[59] The report noted that the 2014-15 deficit result represented:

...an underspend of $7.2 million when compared to our estimated actual result in the 2015-16 Portfolio Budget Statement and is attributable to both higher than forecast revenue and lower employee numbers due to restrictions on recruitment.[60]

2.59      The AEC received an unqualified audit opinion from the ANAO for its 2014-15 financial statements.[61]

2.60      It was also noted by the Commissioner that the AEC updated its internal budgeting model and methodology during 2014-15 to ensure the corporate plan drives resourcing decisions.[62]

New reporting requirements for 2014-15

2.61      The report provides the percentage of staff (2.4 per cent) who identified as Aboriginal or Torres Strait Islander in 2014-15, but does not include the actual number or the number for the preceding year. A table of 'staff by diversity 2011-12 to 2014-15' includes the percentage of staff who are Aboriginal and Torres Strait Islander peoples and/or culturally or linguistically diverse. The table indicates that the 2013-14 figure was just under 2 per cent of staff who identified as Aboriginal and Torres Strait Islander peoples.[63]

2.62      The report includes required information under item 12(26) of the Requirements for Annual Reports concerning procurement initiatives to support small business.[64]

Australian Political Exchange Council

2.63      The Australian Political Exchange Council has prepared a report covering the years 2010-11, 2011-12 and 2012-13 which was tabled on 1 December 2015. This is the second triennial report of the Council, the previous one covered the financial years 2007-09, 2008-09 and 2009-10 and was presented on 12 May 2011.

2.64      The committee has previously raised its concern about the Council preparing a report covering this extended time period and the subsequent delay for this information to be tabled in the Parliament. The committee reiterates its earlier view that a more frequent reporting regime would contribute to greater accountability and ensure that the Parliament is regularly kept informed of Council's activities.[65] It is noted that the Council's website does contain details of recent delegations but appears not to include all the visit programs nor the reports of all the individual study tours.

2.65      A further concern is the time taken to present the current report to the Parliament following the last financial year it covered. The most recent report covering the total years of 2010-2013 was tabled over two years after the end of the period it covered, that is on 1 December 2015. Because the report is presented so long after the period it covers, some parts are significantly out of date. For example, the membership of the Council and the staffing list is at 30 June 2013.

2.66      It is unhelpful that the letter of transmittal at the front of the report is undated and therefore does not provide the date for when the report was completed for forwarding to the Prime Minister, the Leader of the Opposition, the Leader of the Nationals and the Leader of the Australian Greens. However, it is noted that the relevant minister received the report on 12 November 2015, and was therefore tabled in a reasonable timeframe, that is, six sitting days after receipt.[66]

2.67      As previously noted by the committee, the Council is a non-statutory body which operates under a terms of reference. The Council is provided secretariat services through an annual appropriation to the Department of Finance and also receives in-kind donations from organisations and individuals.[67] There is no statutory requirement for the Council to prepare an annual report by a specified time for presentation to the Parliament. The Council's terms of reference do state, however, that the Council should:

Arrange for regular reporting on the Council's activities to Parliament, the Principals and sponsors.[68]

2.68      While the Council's terms of reference do not specify a timeframe for the preparation or subsequent tabling of the report, the Council is urged to prepare the report more regularly and earlier after the time period it covers.

2.69      Despite the issues of an extended timeframe and a delay in tabling, the report includes an informative account of the activities of the Council for the period reviewed, including details of incoming and outgoing delegations, in addition to details of individual study tours.

2.70      The report also contained a brief but useful financial summary which included the appropriation and expenditure over the three financial years reviewed. It was noted that the Council's expenditure was below the funding amount for all three years.[69]

Senator James Paterson
Chair

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