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 2012. 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 and more broadly to the Australian people. 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 (PB Statements) 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 committee examines annual
reports to determine whether they are timely and 'apparently satisfactory' and whether
they comply with the relevant requirements for the preparation of annual
reports of departments and authorities.[2]
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, 28 June 2012;
- for Commonwealth authorities and companies: the Commonwealth Authorities
and Companies Act 1997(CAC Act); 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
6. The annual reports of
the following organisations have been examined by the committee:
Defence portfolio
Department of Defence
AAF Company
ASC Pty Ltd
Army and Air Force Canteen Services
Australian Strategic Policy Institute
Commonwealth Superannuation Corporation—Defence Forces
Retirement Benefits Scheme (DFRB Scheme), the Defence Force Retirement and
Death Benefits Scheme (DFRDB Scheme) and the Defence Force (Superannuation)
(Productivity Benefits) Scheme (DFSPB).
Commonwealth
Superannuation Corporation—Military Superannuation and Benefits Scheme (MilitarySuper)
Defence Housing Australia
Defence Materiel Organisation
Royal Australian Air Force Veterans' Residences Trust Fund
Royal Australian Air Force Welfare Recreational Company
Royal Australian Navy Central Canteens Board
Services Trust Funds
Foreign Affairs portfolio
Department of Foreign Affairs and Trade
Australian Agency for International Development
Australian Centre for International Agricultural
Research
Australian Safeguards and Non-Proliferation Office
Trade portfolio
Australian Trade Commission
Export Finance and Insurance Corporation
Veterans' Affairs
Department of Veterans' Affairs, Repatriation Commission
and Military Rehabilitation and Compensation Commission
Australian War Memorial
Repatriation Medical Authority
Veterans' Review Board
General comments on the annual reports
Timeliness in tabling reports
7. Under Senate
Standing Order 25(20)(c), the committee must report to the Senate any lateness
in the presentation of annual reports.
8. In accordance with the Requirements for Annual
Reports published in June 2012, 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 Supplementary
Budget Estimates hearings are scheduled to occur prior to 31 October, it is
best practice for annual reports to be tabled prior to those hearings (in 2012,
Supplementary Budget Estimates hearings commence on 15 October).[3]
9. A number of annual reports were tabled late. On 3
October 2012, the Chair of the Royal Australian Navy Central Canteens Board
wrote to the Minister for Defence Science and Personnel, the Hon Warren Snowdon
MP, indicating that the company was awaiting the release of the Australian
National Audit Office's (ANAO) audit report. As a result, the company did not
expect to meet the reporting requirements under section 36 of the Commonwealth
Authorities and Companies Act 1997. The Chair requested an extension until
30 November 2012 for the tabling of the Annual Report for 2011–12.[4]
The report was tabled in the Senate on 20 November 2012, and on 26 November
2012 in the House of Representatives.
10. On 4 October 2012, the Chair of AAF Company wrote
to the Minister for Defence Science and Personnel seeking an extension until 23
November 2012. The Chair explained that due to the late completion of the ANAO's
annual audit, the company may not be able to comply with its reporting
obligations.[5]
The report was tabled in the House of Representatives on 26 November 2012,
and on 27 November 2012 in the Senate.
11. The Chair 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.[6]
The report was tabled in the Senate on 20 November 2012, and on 26 November
2012 in the House of Representatives.
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 following annual reports were presented after
31 October 2012: the Commonwealth Superannuation Corporation—MilitarySuper and the
Commonwealth Superannuation Corporation—DFRB Scheme, DFRDB Scheme and the DFSPB
reports were both presented out of sitting on 8 November 2012 and tabled in parliament
on 19 November 2012; the Royal Australian Air Force Veterans' Residences
Trust Fund report was tabled in the Senate on 20 November 2012, and on 26
November 2012 in the House of Representatives; and Services Trust Funds report
was tabled on 1 November 2012 in the House of Representatives and 20
November 2012 in the Senate.
Comments made in the Senate
13. As required under the terms of Senate Standing
Order 25(20)(d), the committee notes that the annual reports of the following
agencies were the subject of comment in the Senate:
- Australian War Memorial[7]
- Export Finance and Insurance Corporation[8]
- AusAID[9]
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 reports. The committee found
no matters of significance relating to the operations and performance of the
bodies presenting their reports.
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 that
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'.
Note on references
17. References to the committee Hansard are to the
proof Hansard. Page numbers may vary between the proof and the official Hansard
transcript.
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