Introduction
1.1
Under Senate Standing Order 25(20), the annual reports of departments
and agencies under the Senate Foreign Affairs, Defence and Trade Legislation Committee's
(the Committee) allocated portfolios stand 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 2018 to 30 April 2019 in
one report.
1.3
Copies of this and other Committee reports can be obtained from the
Senate Table Office or online at the Committee's webpage.
Terms of reference
1.4
Under Standing Order 25(20) the committee is required to:
- Examine each annual report referred to it and report to the Senate
whether the report is apparently satisfactory.
-
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.
-
Investigate and report to the Senate on any lateness in the presentation
of annual reports.
-
In considering an annual report, take into account any relevant remarks
about the report made in debate in the Senate.
-
If the committee so determines, consider annual reports of departments
and budget-related agencies in conjunction with examination of estimates.
-
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.
-
Draw the attention of the Senate to any significant matters relating to
the operations and performance of the bodies furnishing the annual reports.
-
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.
Allocated portfolios
1.5
In accordance with the resolution of the Senate on 31 August 2016, the Committee
had oversight of the following portfolios in the 45th Parliament
when the relevant annual reports were referred to the Committee:
-
Defence, including Veterans' Affairs; and
-
Foreign Affairs and Trade.[1]
Role of annual report
1.6
Annual reports inform the Parliament, stakeholders and other interested
parties of the operations and performance of public sector departments,
agencies, companies and statutory office holders. Annual reports are a key
publication under the Commonwealth performance framework and remain 'the
primary document through which responsible Ministers report to the Parliament.'[2]
Additionally, they are an important reference document and form a critical part
of the historical record.[3]
Reports examined
1.7
During the period 1 May 2018 to 30 April 2019, 22 annual reports of
bodies were presented to the Parliament and referred to the Committee for
examination. Reports examined included those from the following categories of
bodies under the Public Governance, Performance and Accountability Act 2013
(PGPA Act), and those which are prepared by statutory offices or office holders:
Non-corporate Commonwealth entities
-
Department of Defence – Report for 2017-18
-
Department of Veterans' Affairs, Repatriation Commission, and
Military Rehabilitation and Compensation Commission – Report for 2017-18
-
Australian Centre for International Agricultural Research –
Report 2017-18
-
Department of Foreign Affairs and Trade – Report for 2017-18
-
Australian Trade and Investment Commission – Report for 2017-18
Corporate Commonwealth entities
-
Australian War Memorial – Report for 2017-18
-
Defence Housing Australia – Report for 2017-18 (Also referred
to the Senate Finance and Public Administration Legislation Committee)
-
Royal Australian Air Force Veterans' Residences Trust – Report
for 2017-18
-
Royal Australian Navy Central Canteens Board (Navy Canteens) –
Report for 2017-18
-
Army and Air Force Canteen Service – Report for 2017-18
-
Services Trust Funds - Royal Australian Navy Relief Trust Fund,
Australian Military Forces Relief Trust Fund and Royal Australian Air Force
Welfare Trust Fund – Reports for 2017-18
-
Export Finance and Insurance Corporation – Report for 2017-18
-
Tourism Australia – Report for 2017-18
Commonwealth companies
-
Royal Australian Air Force Welfare Recreational Company – Report
for 2016-17
-
Australian Strategic Policy Institute – Report 2017-18
-
Army Amenities Fund Company – Report for 2017-18
-
Royal Australian Air Force Welfare Recreational Company – Report
for 2017-18
Statutory offices/office holders
-
Director of Military Prosecutions – Report for 2017
-
Judge Advocate General – Report for 2017
-
Repatriation Medical Authority – Report for 2017-18 (Also
forwarded to the Senate Community Affairs Legislation Committee)
-
Veterans' Review Board – Report for 2017-18
-
Australian Safeguards and Non-Proliferation Office – Report for
2017-18
Reports not examined
1.8
The Committee is not obliged to examine reports on the operation of
Acts, policy papers, budget documents or corporate plans. Accordingly, the
following documents were also referred to the Committee but not examined:
-
Department of Defence – Special Purpose Flights – Schedule for
the period 1 July 2017 to 31 December 2017
-
Department of Defence – Special Purpose Flights – Schedule for
the period 1 January to 30 June 2018
-
Defence Trade Controls Act 2012 – Independent review on
the operation of the Act, dated October 2018, and Australian Government initial
response
-
Final Budget Outcome 2017-18
-
Consolidated Financial Statements for the year ended 30 June 2018
-
Tax Benchmarks and Variations Statement 2018
-
Mid-year Economic and Fiscal Outlook 2018-19
-
Advance to the Finance Minister – Report on advances provided under
the annual Appropriation Acts for 2017-18
1.9
Where a report is referred to two standing committees, the Committee has
deferred examination of those reports to the Committee which has primary
oversight of the portfolio where that agency sits. Accordingly, the following
reports were not examined:
-
Australian Naval Infrastructure Pty Ltd – Report for 2017-18 (Also
referred to the Senate Finance and Public Administration Legislation Committee)
-
ASC Pty Ltd – Report for 2017-18 (Also referred to the Senate
Finance and Public Administration Legislation Committee)
Assessment of annual reports
1.10
Senate Standing Order 25(20) requires the Committee to examine reports
referred to it to determine whether they are timely and 'apparently
satisfactory'. The Committee must consider whether the reports comply with the
relevant legislation or requirements for the preparation of annual reports in
forming its assessment.
Annual reporting requirements
Public Governance, Performance and
Accountability Act 2013
1.11
The PGPA Act is the legislative basis of the Commonwealth performance
framework which governs how the Commonwealth public sector uses and manages
public resources. It sets out the key requirements for governance, performance reporting
and accountability required of Commonwealth entities and companies. A
description of different governance structures of these bodies for the purposes
of the PGPA Act is set out below:
-
Non-corporate Commonwealth entity – legally and financially part
of the Commonwealth, including departments of state, parliamentary departments
or listed entities (a body, person, group of persons or organisation that is
prescribed by rules made under the PGPA Act).
-
Corporate Commonwealth entity – a body corporate, that is, a
separate legal personality from the Commonwealth. It can act in its own right
exercising certain legal rights such as entering into contracts and owning
properties.
-
Commonwealth company – a company established by the Commonwealth
under the Corporations Act 2001 that is wholly controlled by the
Commonwealth.[4]
Annual reports
1.12
Section 46 of the PGPA Act sets out the annual reporting requirements in
relation to Commonwealth entities, which states that annual reports must comply
with any requirements prescribed by rules. Section 97 sets out the annual
reporting requirements for Commonwealth companies, including those of the Corporations
Act 2001 and any additional information prescribed by the rules.
Corporate plans and annual
performance statements
1.13
The Commonwealth performance framework also includes the requirement for
Commonwealth entities and companies to prepare and publish corporate plans each
year, pursuant to sections 35 and 95 of the PGPA Act. Under section 39 of the
PGPA Act, Commonwealth entities must prepare an annual performance statement
and include this statement in the annual report. Entities use the annual
performance statement to report on results achieved against the targets, goals
and measures established at the beginning of a reporting year in its corporate
plan, in addition to key performance indicators set out in portfolio budget/additional
estimates statements.
1.14
It is noted that Commonwealth companies are not required to prepare
annual performance statements. However, under section 27A of the Public
Governance, Performance and Accountability Rule 2014 (PGPA Rule), companies are
required to include in their annual report a report on the actual performance
results achieved against the performance information published in their
corporate plan.[5]
Public Governance, Performance and
Accountability Rule 2014
1.15
The PGPA Rule sets out the detailed mandatory requirements for the
preparation of corporate plans, annual performance statements and annual reports
for Commonwealth entities and, where relevant, Commonwealth companies.
1.16
The Department of Finance publishes resource management guides for
Commonwealth entities on a wide range of topics, including on the annual
reporting obligations under the PGPA Act and mandatory requirements for the
content of annual reports as prescribed by the PGPA Rule.
1.17
There were no changes to the annual reporting requirements for the
2017-18 period.[6]
Statutory office holders and statutory bodies
1.18
Statutory office holders are engaged or employed under an Act which may
prescribe annual reporting requirements pursuant to the office. It is also
noted that there may be reporting requirements in the enabling legislation for
statutory bodies (which may also be a Commonwealth entity).
Non-Statutory bodies
1.19
Non-statutory bodies (NSBs) are established by a Minister and are not
pursuant to a statute. Annual reporting requirements for NSBs are contained in
the government response to the Senate Standing Committee on Finance and Public
Administration Report on Non-Statutory Bodies, dated 8 December 1987.[7]
Summary of annual reporting
requirements
1.20
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
-
PGPA Act, section 46 and the PGPA Rule 2014, Division 3A(A);
-
for parliamentary departments, the Parliamentary Service Act
1999, section 65; and
-
for statutory bodies: relevant enabling legislation.
Corporate Commonwealth entities
-
PGPA Act, section 46 and the PGPA Rule 2014, Division 3A(B); and
-
for statutory bodies: relevant enabling legislation.
Commonwealth companies
-
PGPA Act, section 97, which also refers to requirements under the
Corporations Act 2001 and the PGPA Rule 2014, Part 3-3; and
-
for statutory bodies: relevant enabling legislation.
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, Senate Hansard,
8 December 1987.[8]
Statutory offices or office holders
-
any requirements in the enabling legislation.
Timeliness
1.21
Under Standing Order 25(20)(c), the Committee must report to the Senate
any lateness in the presentation of annual reports. The Committee notes the
different reporting timeframes for different categories of bodies.
Commonwealth entities
1.22
Section 46(2) of the PGPA Act requires the accountable authority for a
Commonwealth entity to prepare an annual report and provide it to the
responsible minister by the fifteenth day of the fourth month after the end of
the reporting period for the entity. This section of the Act does not currently
prescribe a timeframe for the Minister to present the report to the Parliament,
neither does the PGPA Rule.
1.23
The PGPA Rule states that annual reports for corporate Commonwealth
entities, non-corporate Commonwealth entities and Commonwealth companies must
comply with the 'the guidelines for presenting documents to the Parliament'.[9]
1.24
The Committee notes that reports were prepared under PM&C's Guidelines
for the Presentation of Documents to the Parliament which advised that for
all entities:
As per past practice, it is expected that the responsible
Minister will present the report to each House of Parliament on or before
31 October. 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. This ensures that annual reports
are available for scrutiny by the relevant Senate standing committee.[10]
1.25
The Department of Finance guidance material on annual reporting for
Commonwealth entities also notes the provision for an application for an
extension to the period for presenting an annual report:
The provisions of subsections 34C(4) to (7) of the Acts
Interpretation Act 1901 allow for an application for extension of the
period for presenting annual reports. An extension should only be sought if it
would not be reasonably possible for the report to be prepared within the
specified timeframes.[11]
Commonwealth companies
1.26
Under section 97(2) of the PGPA Act, Commonwealth companies are required
to prepare an annual report and provide it to the responsible Minister:
- if the company is required by the Corporations Act 2001 to hold an
annual general meeting—the earlier of the following:
- 21 days before the next annual general meeting after the end of the reporting
period for the company;
- 4 months after the end of the reporting period for the company; and
- 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.
1.27
In relation to the tabling of the annual report in the Parliament,
section 97(5) of the PGPA Act states that:
(5) If the Commonwealth company is a wholly-owned
Commonwealth company, or is not required to hold an annual general meeting, the
responsible Minister must table the documents in each House of the Parliament
as soon as practicable after receiving them. In all other cases, the
responsible Minister must table the documents in each House of the Parliament
as soon as practicable after the annual general meeting of the company.
1.28
The advice contained in Finance's Resource Management Guide No. 137
– Annual reports for Commonwealth companies aligns with the requirements
under section 97(5) of the PGPA Act set out above.[12]
Consistent with Commonwealth entities, Resource Guide No. 137 notes the
provision for an application for an extension of the reporting period for
Commonwealth companies:
There is scope for a company to apply in writing to their
responsible Minister for an extension where it is not reasonably possible to
meet the timeframes outlined in subsection 97(2). Subsection 34C(5) of the Acts
Interpretation Act 1901 allows a Minister to grant an extension where he or
she considers it reasonable in the circumstances.[13]
Provisions of the Acts
Interpretation Act 1901
1.29
In the absence of specific provisions, the Acts Interpretation Act 1901
(Acts Interpretation Act) requires bodies to present annual reports to
ministers within six months after the end of the period reported upon
(subsection 34C(2)), and ministers to table reports within 15 sitting days of
receipt (subsection 34C(3)).
Reporting timeframes for statutory
offices/office holders
Judge Advocate General
1.30
Under section 196A(1) of the Defence Force Discipline Act 1982
(DFD Act) the Judge Advocate General shall, as soon as practicable after each
31 December, prepare and furnish to the Minister a report relating to the
operation of the Act, the regulations, the rules of procedure; and the
operation of any other law of the Commonwealth or of the Australian Capital
Territory in so far as it relates to the discipline of the Defence Force during
the year ending on that 31 December.
1.31
Section 196A(2) of the DFD Act requires the Minister to present the
report to each House of the Parliament within 15 sitting days of that House
after the day on which the Minister receives the report.
Director of Military Prosecutions
1.32
Under Section 196B(1) of the DFD Act, the Director of Military
Prosecutions must, as soon as practicable after each 31 December, prepare and
give to the Minister, for presentation to the Parliament, a report relating to
the operations of the Director of Military Prosecutions during the year ending
on that 31 December.
1.33
The Act does not prescribe a timeframe for the Minister to present the
report to the Parliament. It appears that section 34C(3) of the Acts
Interpretation Act would apply, therefore requiring the Minister to lay
a copy of the report before each House of Parliament within 15 sitting days of
receipt of that report.
Inspector-General of the Australian
Defence Force
1.34
Section 110R(1) of the Defence Act 1903 (Defence Act) states that
as soon as practicable after the end of each financial year, the
Inspector-General of the Australian Defence Force (ADF) must prepare and give
to the Minister, for presentation to the Parliament, a report on the operations
of the Inspector-General during the financial year. This section also notes
that reference should also be made to section 34C of the Acts Interpretation Act,
which requires the Minister to lay a copy of the report before each House of
Parliament within 15 sitting days of receipt of that report.
Repatriation Medical Authority
1.35
The Repatriation Medical Authority is established under the Veterans'
Entitlement Act 1986 and there does not appear to be a statutory requirement
to table an annual report under the Act but the Authority has done so since its
inception.
Recommendation
1.36
The Committee recommends that unless there are strong public policy
reasons to the contrary, on the occasion of any amendment to the Veterans’
Entitlement Act 1986, the Government consider including a clause requiring
the Repatriation Medical Authority to table an annual report.
Veterans' Review Board
1.37
Section 215(4) of the Veterans' Entitlement Act 1986 states that
the Principal Board Member shall, as soon as practicable after 30 June in each
year, prepare and furnish to the Minister a report on the operations of the
Board during the year that ended on that 30 June. Section 215(5) states that
the Minister shall cause a copy of a report furnished to the Minister under
subsection (4) to be laid before each House of the Parliament within 15 sitting
days of that House after the day on which the Minister receives the report.
Repatriation Commission
1.38
Section 215 of the Veterans' Entitlement Act 1986 requires the
Repatriation Commission, as soon as practicable after 30 June in each year, to
prepare and furnish to the Minister a report on the operation of the Act during
the year; with the Minister required to present report to the Parliament within
15 sitting days after receipt.
Military Rehabilitation and
Compensation Commission
1.39
Under section 385 of the Military Rehabilitation and Compensation
Commission Act 2004, the Chair of the commission must, as soon as possible
after 30 June each year, give the Minister for presentation to the Parliament, a
report of the Commission's activities for the financial year ended on that day.
Australian Safeguards and
Non-proliferation Office
1.40
Under section 51 of the Nuclear Non-Proliferation (Safeguards) Act
1987, section 96 of the Chemical Weapons (Prohibition) Act 1994 and
section 71 of the Comprehensive Nuclear Test-Ban Treaty Act 1998, the
Director of the Australian Safeguards and Non-Proliferation Office must, as
soon as practicable after 30 June in each year, prepare a report of operations
and furnish it to Minister. The above legislative sections require the Minister
to cause a copy of the report to be laid before each House within 15 sitting
days.
Review of the PGPA Act
1.41
The Committee notes the tabling of the report of the Independent
review into the operation of the Public Governance, Performance and
Accountability Act 2013 and Rule in September 2018. Among the range
of issues considered by Ms Elizabeth Alexander AM and Mr David Thodey AO in
their review, which looked at how the PGPA Act and Rule have worked and whether
improvements could be made, was the timing of annual report tabling. In
particular, the report noted that the Joint Committee of Public Accounts and
Audit asked the review to consider specifying a date for tabling of annual
reports in the Parliament, and a preference for the date to be 15 October
to ensure availability of reports before the Supplementary Budget Estimates
hearings.[14]
1.42
The independent reviewers considered the timing of the tabling of annual
reports to be a critical factor for proper accountability and supported
legislating a tabling date to ensure the earlier tabling of annual reports:
We agree that the current tabling arrangements do not give
the Parliament enough time to get across the detail in annual reports before
Senate Supplementary Budget Estimates hearings. By the time reports are tabled,
senators may only have a few days to consider content and information about the
entities’ performance. There have been occasions when annual reports are tabled
only after hearings are completed. There is little point in improving the
quality of the performance information in annual reports, and the quality of
annual reports more generally, if the Parliament does not get the information
when it needs it...
The PGPA Act and Rule should be amended to require the
responsible minister to present an entity’s annual report in the Parliament by 30
September each year. Our support for this presentation date is based on two
prerequisites. Firstly, that a fully digital reporting platform is implemented ...Secondly,
that the Auditor-General is able to complete the audits of entity financial
statements so that entities can meet the required timeframes. This means that
the auditor’s report should be provided by the middle of September.
These revised presentation arrangements need to ensure that
ministers have sufficient time to consider an entity’s annual report before
presenting it to the Parliament. We therefore support an additional requirement
that an accountable authority provides their annual report to the responsible minister
at least seven days prior to the presentation deadline.[15]
1.43
The lack of clarity and clear legislative basis for the timing
requirements for the tabling of annual reports under the current framework is
also of concern to the Committee and it welcomes the review's recommendations that
reflect the above findings:
RECOMMENDATION 30 [Subject to the implementation of
Recommendation 31] Annual reports should be presented to the Parliament on
or before 30 September. This would ensure the Parliament has annual reports available
before the Senate Supplementary Budget Estimates hearings. Annual reports
should be presented to the responsible minister no later than seven days before
this date.
RECOMMENDATION 31 The Parliament and the Department of
Finance should continue to implement a fully digital platform and reporting
process for annual reports and other relevant reporting requirements, with a
view to phasing out hard copy reporting by 2019–20. Sufficient resources and
funding should be allocated to achieve this goal.[16]
1.44
The Committee was pleased to note that the Government response which was
tabled on 5 April 2019 accepts, in principle, 48 out of 52 recommendations[17]
that are within its area of responsibility; and encourages sympathetic
consideration of the remaining ones, including one recommendation that is of
shared responsibility between the Government and Parliament.[18]
Timeliness of reports examined
1.45
Standing Order 25(20)(c) requires the Committee to investigate and
report to the Senate on any lateness in the presentation of annual reports. The
Committee considers the timely presentation of annual reports to the Parliament
an important element of accountability.
1.46
Appendix 1 lists the annual reports tabled between 1 May 2018 and 30
April 2019 and referred to the committee for examination. This table includes
the dates the reports were tabled in the Senate (or received by the President
out of session) and the House of Representatives. For the purposes of the Committee's
examination of timeliness, the earlier date is taken as the presentation date
to the Parliament. The table also includes the dates the reports were submitted
to, and received by, the Minister, if available.
1.47
As noted above, there are two elements regarding the timeframe for the preparation
and presentation of annual reports: the provision of the report to the Minister
and the presentation of the report to the Parliament. Both of these elements
were examined by the Committee in investigating any lateness in presentation of
the annual reports.
1.48
The Committee was pleased to note again this year that all of the
2017-18 annual reports within the Foreign Affairs and Trade Portfolio met both
elements of the reporting timeframe. However, the Committee notes the delay
between the report of the Australian Safeguards and Non-Proliferation Office
being provided to the Minister on 19 September 2018 and received by the
Minister on 30 October 2018. However, the Committee was pleased to see that the
report was subsequently presented two days later, on 1 November 2018, well
within the required 15 sitting days.
1.49
Within the Defence Portfolio, most reports again met both elements of
the respective reporting timeframes, with the exception of three.
1.50
The Royal Australian Air Force Welfare Recreational Company (RAAFWRC) Report
for 2016-17 was presented in the Senate on 3 August 2018, over a year after the
financial year for which it covered. Although the report was signed off by the
Chair and Director on 12 December 2017, it was not submitted to the Minister
until 11 May 2018, and was received by the Minister on 5 July 2018. As a
Commonwealth company, this is well after the requirement of four months after
the end of the reporting period. The report was subsequently presented by the
Minister on 16 July 2018, which is reasonably consistent with the requirements
under section 97(5) of the PGPA Act, that is, as soon as practicable after
receiving the report. The Committee notes that, while the Auditor-General's report
indicated that the RAAFWRC financial statements for 2016-17 gave a true and
fair view of the entity's financial position and performance for the year, and
complied with relevant accounting standards; an emphasis of matter in relation
to a prior period error was included. The report advised that:
Corrective action has been taken for the presentation of
2016/2017 statements and appropriate notes and restatements included within the
financial report.[19]
1.51
It is further noted that the 2016-17 independent auditor's report for
the RAAFWRC financial statements was dated 12 December 2017; which is
later than recent reports and may have been a contributing factor in the later
tabling for that year. The Committee was pleased to note that the RAAFWRC
annual report for 2017-18 was tabled in a more timely manner, being provided to
the Minister on 28 September 2018 and presented in the Senate on 1
November 2018.
1.52
While the 2017-18 report of Defence Housing Australia was presented in
advance of the Committee's Supplementary Budget Estimates hearings, on 19 October 2018,
it was noted that the agency was one day late in providing the report to the
Minister. Similarly, the Royal Australian Air Force Veterans' Residences Trust
report for 2017-18 was tabled in accordance with relevant requirements, on 24
October 2018, but the agency was two days late in submitting the report to the
Minister.
1.53
As noted above, the requirements for the preparation of annual reports
of statutory office holders are less prescribed than for those PGPA Act bodies,
and provide some flexibility in regard to both content and tabling timeframe.
While the Minister, upon receipt of the annual report, must present the report
to the Parliament within 15 sitting days, the preparation and furnishing of the
report to the Minister is 'as soon as practicable' or 'as soon as possible' after
the end of the reporting period. The tabling timeframe for reports falling into
this category were generally consistent with the tabling dates from last year
and were considered to have met the legislative requirements.
1.54
The reports of the Director of Military Prosecutions and the Judge
Advocate General for 2017 were submitted to the Minister on 1 June 2018, were
received by the Minister on 26 June 2018 and tabled in Parliament the following
day, 27 June 2018. The 2017-18 report of the Veterans' Review Board was
submitted to, and received by the Minister on 19 October 2018 and presented on
31 October 2018. The Committee again commends the Repatriation Medical
Authority for preparing an annual report, although not required to, which was submitted
to the Minister in a timely manner on 5 October 2018, and subsequently
tabled on 22 October 2018. The Committee notes that the 2017-18 report of
Inspector General of the Australian Defence Force had not been presented in the
period up until 30 April 2019.
1.55
The Committee commends those bodies and the relevant ministers whose
reports for the 2017-18 financial year were presented to the Parliament and
available to the Committee before the relevant Supplementary Budget Estimates
2018-19 hearings on 24 or 25 October 2018. It is noted that there were
double the number of reports in this category in comparison to the previous
year, where only five were available before the hearings (date of presentation is
in brackets):
-
Australian War Memorial (16 October 2018);
-
Australian Centre for International Agricultural Research (16
October 2018);
-
Department of Foreign Affairs and Trade (17 October 2018);
-
Department of Defence (18 October 2018);
-
ASC Pty Ltd (18 October 2018);
-
Australian Naval Infrastructure Pty Ltd (19 October 2018);
-
Defence Housing Australia (19 October 2018)
-
Department of Veterans' Affairs, Repatriation Commission, and
Military Rehabilitation and Compensation Commission (19 October 2018);
-
Repatriation Medical Authority (22 October 2018);
-
Export Finance and Insurance Corporation (23 October 2018); and
-
Australian Trade and Investment Commission (24 October 2018).
Reports on the Schedule of Special
Purpose Flights
1.56
The Committee has again chosen to comment on the timeliness of the two
reports on the Schedule of Special Purpose Flights which were referred to the
Committee during the examination period. The Committee notes a slight improvement
with the timeliness of reporting on the most recent reports: with the report
for July-December 2017 tabled on 16 August 2018 and therefore missing the June
timeframe; however, the January-June 2018 report met the December timeframe,
with its presentation to the President on 20 December 2018.
Senate debate
1.57
In accordance with Standing Order 25(20)(d) the Committee is required 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.
Non–reporting bodies
1.58
Standing Order 25(20)(h) requires that the Committee inquire into, and
report on, any bodies which do not present annual reports to the Senate but
should present such reports. The Committee makes no recommendation for any
bodies not presenting an annual report to do so.
Reporting arrangements for new
bodies
1.59
The Committee welcomes confirmation by the Australian Signals
Directorate, a non-corporate Commonwealth entity, that following its first
anniversary as a separate statutory agency in July 2019, it is the agency's
intention to issue a declassified version of its annual report later this year.[20]
1.60
At the Additional Estimates 2018-19 hearing on 20 February 2019 the
Committee sought advice from Department of Defence on the availability of
performance information for the new Naval Shipbuilding College which is an
Australian Government initiative opened on 1 November 2018. The College is
managed by the Naval Shipbuilding Institute, a joint venture between Kellogg
Brown & Root and Huntington Ingalls Industries.[21]
1.61
At the hearing, the Committee was advised that following the first
anniversary of the signing of the contract, Defence would receive an annual
report from the providers of the College, in addition to updates on a quarterly
basis.[22]
In response to a question on notice, Defence clarified the performance
reporting arrangements under the contract and achievements to date:
The cont[r]act between Defence and NSI (Aust) Pty Ltd, the joint-venture
selected to run the Naval Shipbuilding College, was signed on 1 March 2018. As
a deliverable under the contract, a Year 1 Annual Plan was delivered to Defence
on 12 July 2018. Each quarter the Commonwealth completes a Contract Performance
Report which assesses performance against the Year 1 Annual Plan.
Achievements to date include:
-
The development and implementation
of a Workforce Register to capture an individual's interest in career
opportunities in naval shipbuilding and sustainment;
-
The completion of seven Training
Needs Analysis for Designer, Production Planner, Scheduler, Project Manager,
Welding, Electrical and Pipefitter;
-
The establishment of an
endorsement framework for training providers, with TAFE SA and TAFE Queensland
welding courses approved by the College as meeting industry occupational
standards and requirements;
-
Engagement with industry to
conduct labour market analysis and the development of Workforce Demand
projections using a common taxonomy of job descriptions.[23]
1.62
While not an entity for the purposes of Senate Standing Order 25(20), with
a contract value totalling $62 million (GST inclusive) over three years,[24]
the Committee would hope that regular performance information for the Naval
Shipbuilding College is made publicly available.
Assessment of reports
1.63
Under Standing Order 25(20)(a), the Committee is required to examine the
annual reports of departments and agencies and report to the Senate on whether
they are 'apparently satisfactory'. In its examination of the annual reports
referred, the committee found them to be of a satisfactory standard and largely
adhere to relevant requirements. The Committee considers the reports examined
to be 'apparently satisfactory'. The Committee has selected seven reports for
closer examination in Chapter 2.
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