1.1
Under Senate Standing Order 25(20), the annual reports of departments and agencies under the Senate Finance and Public Administration Legislation Committee's (the committee) allocated portfolios are referred to the committee for examination and report.
1.2
Standing Order 25(20)(f) requires the committee to 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. On this occasion, the committee has chosen to examine all reports tabled from 1 May 2021 to 30 April 2022 in one report.
Terms of reference
1.3
Under Standing Order 25(20) 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 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.
(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.
Annual reports
1.4
As a key accountability mechanism of the Commonwealth Performance Framework, annual reports inform the Parliament and the public about the achievements, performance and financial position of Commonwealth entities and companies at the end of each reporting year. They also facilitate the examination of how the use of public resources achieves the intended results for a Commonwealth entity.
Requirements for annual reports
1.5
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) establishes a performance reporting framework for all Commonwealth entities and companies. Section 38 of the PGPA Act requires all Commonwealth entities to measure and assess their performance.
1.6
The Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) supports the implementation of the PGPA Act and outlines the requirements of annual reports for Commonwealth entities.
1.7
Section 39 of the PGPA Act requires all Commonwealth entities to prepare an annual performance statement to be included in their annual report. Annual performance statements compare an entity's non-financial performance results against the targets, goals and measures outlined by the relevant corporate plan and the Portfolio Budget Statements (PBS) at the beginning of the reporting period.
1.8
Annual reporting requirements differ between Commonwealth entities. Below is a summary of the legislative authority and requirements under which annual reports are prepared for different types of bodies:
Non-corporate Commonwealth entities: section 46 of the PGPA Act and Division 3A(A) of the PGPA Rule; and for parliamentary departments, the Parliamentary Service Act 1999, section 65.
Corporate Commonwealth entities: section 46 of the PGPA Act and Subdivision B of Division 3A of Part 2-3 of the PGPA Rule.
Commonwealth companies: section 97 of the PGPA Act, which refers to additional requirements under the Corporations Act 2001 and Part 3-3 of the PGPA Rule.
Statutory office holders and statutory bodies: statutory office holders are engaged or employed under an Act, which may prescribe annual reporting requirements pursuant to the office. There may be reporting requirements in the relevant enabling legislation for statutory bodies, which may also be Commonwealth entities.
Non-statutory bodies: annual reporting requirements are contained in the government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies.
1.9
In addition to legislative requirements, the Department of Finance (Finance) provides guidance material for Commonwealth entities which sets out further detail on the content requirements for annual reports under the Commonwealth Performance Framework in accordance with the PGPA Act and PGPA Rule. The material available from the Finance website includes several Resource Management Guides which may apply to the annual reports being examined.
Reporting timeframes
1.10
Section 46 of the PGPA Act requires both corporate and non-corporate Commonwealth entities to prepare annual reports and for such reports to be provided to the responsible minister by the 15th day of the fourth month after the end of the reporting period for the entity. The PGPA Act does not provide a timeframe for presentation to the Parliament. Some entities, however, may have a specific date for presentation stipulated by their enabling legislation.
1.11
Section 97(2) of the PGPA Act sets out the annual reporting timeframes for Commonwealth companies. Annual reports are required to be prepared and provided to the responsible Minister:
(a)
if the company is required by the Corporations Act 2001 to hold an annual general meeting—the earlier of the following:
(i)
21 days before the next annual general meeting after the end of the reporting period for the company;
(ii)
4 months after the end of the reporting period for the company; and
(b)
in any other case—4 months after the end of the reporting period for the company; or the end of such further period granted under subsection 34C(5) of the Acts Interpretation Act 1901.
1.12
In the absence of specific provisions, subsection 34C(2) of the Acts Interpretation Act 1901 may apply, which requires bodies to present annual reports to ministers within six months after the end of the period reported upon. Subsection 34C(3) further specifies that the responsible minister is obliged to present it to parliament within 15 sitting days of receiving the report.
Allocated portfolios and reports examined
1.13
The Senate allocated departments and agencies to committees on 12 February 2020. In accordance with that resolution, the committee has oversight of the parliamentary departments and the departments and agencies of the Prime Minister and Cabinet portfolio, and the Finance portfolio.
1.14
In accordance with Senate Standing Order 25(20)(f), this report examines annual reports tabled in the period 1 May 2021 to 30 April 2022. In this period, 35 annual reports of Commonwealth entities, companies and statutory office holders were tabled in the Parliament and referred to the committee. The annual reports examined in this report are listed in Appendix 1.
1.15
The committee is not obliged to examine reports on the operation of Acts, policy papers, budget documents or corporate plans. Accordingly, several documents were also referred to the committee but were not examined for the purposes of this report. These documents are also listed in Appendix 1.
Assessment of annual reports
1.16
Standing Order 25(20)(a) requires the committee to report to the Senate on whether the annual reports of departments and agencies in its portfolio presented to it during the relevant period are 'apparently satisfactory'.
1.17
In assessing these reports, the committee has taken into consideration the role and purpose of annual reports within the Commonwealth Performance Framework, the legislative requirements for the reports, guidance for best practice in the Finance Resource Management Guides and other relevant materials.
1.18
The Committee notes amendments to the PGPA Rule which required non-corporate Commonwealth entities to disclose in annual reports the number of, and expenditure on, consultancy and non-consultancy contracts and additional information about those organisations receiving that expenditure. The amendments took effect on 4 June 2020 and applied to annual reports presented in the assessable reporting period. The committee brings this to the attention of the Office of the Official Secretary to the Governor-General for inclusion in future annual reporting.
1.19
Notwithstanding the above, the committee considers all reports examined to be 'apparently satisfactory' and encourages Commonwealth entities to continue to aim for standards of best practice in preparing annual reports.
Timeliness of annual reports
1.20
Standing Order 25(20)(c) requires the Committee to investigate and report to the Senate on any lateness in the presentation of annual reports. Appendix 1 includes information for the date each examined annual report was:
submitted to its responsible minister;
first sighted by the responsible minister; and
tabled (or presented) in the House of Representatives and the Senate.
1.21
The majority of annual reports for 2020–21 were presented in a timely manner. The following annual reports of the 2020–21 period were submitted to the relevant minister after 31 October 2021:
Anindilyakwa Land Council—Annual Report 2020–21;
Tiwi Land Council—Annual Report 2020–21; and
Wreck Bay Aboriginal Community Council—Annual Report 2020–21.
1.22
The committee encourages Commonwealth entities and companies to prepare annual reports in accordance with the timeframe outlined by the relevant legislation.
1.23
Furthermore, the Finance Resource Management Guides specify that entities are expected to table their annual reports prior to Senate estimates hearings held in October. The committee encourages Commonwealth entities to table their annual reports prior to those hearings in order to assist the committee's scrutiny of estimates.
Senate debate
1.24
Standing Order 25(20)(d) requires the Committee to take into account any relevant remarks about the reports made in debate in the Senate. The committee notes that none of the annual reports examined in this report have been the subject of comments or debate in the Senate at the time of preparing this report.
Bodies not presenting annual reports to the Senate
1.25
The committee is required to report to the Senate on whether there are any bodies which should have presented an annual report to the Senate but did not. The committee is satisfied that there are no such bodies at this time.