Preface


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.

Navigation: Previous Page | Contents | Next Page