Preface
Terms of reference
1. The committee is responsible for examining annual
reports of departments and agencies within two portfolios: Defence (including
the Department of Veterans' Affairs), and Foreign Affairs and Trade.
2. Under Standing Order 25(20), the committee is
required to report on annual reports tabled by 31 October each year by the
tenth sitting day of the following year, and on reports tabled by 30 April each
year by the tenth sitting day after 30 June of that year.
3. This Report on Annual Reports also examines Annual
Reports that were tabled after 31 October 2011. The standing order states:
Annual reports of departments and agencies shall stand referred
to the committees in accordance with an allocation of departments and agencies
in a resolution of the Senate. Each committee shall:
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.
Role of annual reports
4. Annual reports place a great deal of information
about government departments and agencies on the public record. Accordingly,
the tabling of annual reports continues to be an important element of
accountability to Parliament. The information provided in annual reports
assists Parliament in the effective examination of the performance of
departments and agencies and the administration of government programs. Indeed,
as noted in the Requirements for annual reports:
Annual reports serve to inform the Parliament (through the
responsible Minister), other stakeholders, educational and research
institutions, the media and the general public about the performance of
departments in relation to services provided. Annual reports are a key
reference document and a document for internal management. They form part of
the historical record.
Annual reports and Portfolio Budget
Statements (PBSs) are the principal formal accountability mechanisms between
government and departments and from departments through (or on behalf of) government
to the Parliament.[1]
Assessment of annual reports
5. The annual reports are
examined by the committee to determine whether they are timely and 'apparently
satisfactory'.[2]
The committee considers whether the reports comply with the relevant
requirements for the preparation of annual reports of departments and
authorities.
6. The requirements are set
down in the following instruments:
-
for portfolio departments: Public Service Act 1999,
subsections 63(2) and 70(2), and the Requirements for annual reports for
departments, executive agencies and FMA Act bodies, Department of Prime
Minister and Cabinet, 23 June 2010;
-
for Commonwealth authorities and companies: the Commonwealth Authorities
and Companies Act 1997; in particular, the Commonwealth Authorities
and Companies (Report of Operations) Orders 2002; and
-
for non–statutory bodies: the guidelines are contained in the
government response to the report of the Senate Standing Committee on Finance
and Government Operations on Non–statutory Bodies, Senate Hansard,
8 December 1987, vol s124, pp. 2643–45 (requirements were
modified in 1987).
Annual reports considered
7. The annual reports of
the following organisations have been examined by the committee:
Defence portfolio
Department of Defence
Defence Materiel Organisation
ASC Pty Ltd
Defence Housing Australia
Army Amenities Company
Foreign Affairs portfolio
Department of Foreign Affairs and Trade
Australian Agency for International Development
Australian Centre for International Agricultural
Research
Trade portfolio
Australian Trade Commission
Export Finance and Insurance Corporation
Veterans' Affairs
Department of Veterans' Affairs
Australian War Memorial
General comments on the annual reports
Timeliness in tabling reports
8. Under Senate
Standing Order 25(20)(c), the committee must report to the Senate any lateness
in the presentation of annual reports.
9. In accordance with the Requirements for Annual
Reports published in June 2010, agencies are required to present:
A copy of the annual report...to each House of Parliament on
or before 31 October in the year in which the report is given. If Senate
Estimates is scheduled to occur prior to 31 October, it is best practice for
annual reports to be tabled prior to those hearings.[3]
10. A number of annual reports were tabled late. On 11
October 2011, the Chair of the Australian Military Forces Relief Trust Fund
wrote to the Minister for Defence Science and Personnel, Hon Warren Snowdon MP,
noting that due to tight timeframes in relation to audit outcomes it would be
difficult to ensure that the reports could be printed and ready for tabling.
The chairman requested that the minister note that it was intended to have the
reports tabled as soon as practicable after 15 October 2011 but no later than
22 November 2011.[4]
The report was tabled in the House of Representatives on 21 November 2011 and
the following day in the Senate.
11. The Chairman of Trustees for the Royal Australian
Air Force Veterans' Residences Trust Fund also wrote to the Minister for
Defence Science and Personnel seeking an extension for the lodgement of the
Trust's 2010–2011 Annual Report.[5]
The report was presented out of sitting on 29 November 2011 and tabled in both
houses of Parliament on 7 February 2012. The Chairman of the RAAF Welfare Recreational
Company, likewise wrote to the Hon Warren Snowdon MP, indicating that the
company was awaiting the release of ANAO's Audit Report and did not expect to
meet the reporting requirements under section 36 of the Commonwealth
Authorities and Companies Act 1997.[6]
The report was tabled in the House of Representatives on 21 November 2011 and
in the Senate on the following day. For a similar reason, the Chairman of Royal
Australian Navy Central Canteens Board wrote to the Minister advising him that
due to the late completion of the Audit, the Board would not be able to comply
with its reporting obligations and sought an extension until 30 November 2011
for the tabling of its Annual report.[7]
The report was tabled in the House of Representatives on 24 November 2011 and
in the Senate on 7 February 2012.
12. A table detailing the dates relating to the
timeliness of presentation is at Appendix 1. It should be noted that, apart
from those referred to above, the annual reports of Defence Housing Australia presented
out of sitting on 4 November 2011 and tabled in Parliament on 21 November 2011;
the Repatriation Medical Authority was tabled in Parliament on 21 November 2011;
the AAF Company report was tabled on 22 November 2011.
Comments made in the Senate
13. The committee is obliged, under Senate Standing
Order 25(20)(d), to consider any remarks made about these reports in the
Senate. There were no comments in the Senate on any of these reports.
Matters of significance
14. In accordance with Senate Standing Order 25, the
committee is to note any significant matters relating to the operations and
performance of the bodies presenting their annual report. The committee found
no matters of significance relating to the operations and performance of the
bodies presenting their report.
Bodies not presenting annual reports to the Senate
15. The committee is required to
report to the Senate each year on whether there are any bodies that do not
present annual reports to the Senate and which should present such reports. The
committee is satisfied that there are no bodies, within these portfolios, which
do not meet their reporting requirements to the Senate.
Standard of reports
16. The committee found all reports to be generally of
a high standard. They effectively described the function, activities and
financial positions of the various departments and agencies. The committee
therefore finds all of the annual reports to be 'apparently satisfactory'.
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