Chapter 2 - Annual reports of statutory authorities


Chapter 2 - Annual reports of statutory authorities

2.1        The following reports of statutory authorities for the financial year 2005-06 were referred to the committee for examination and report:

  • Australian Customs Service;
  • Australian Commission for Law Enforcement Integrity;
  • Australian Federal Police;
  • Australian Government Solicitor;
  • Australian Institute of Criminology and Criminology Research Council;
  • Australian Law Reform Commission;
  • Australian Security Intelligence Organisation;
  • Australian Transaction Reports and Analysis Centre (AUSTRAC)
  • CrimTrac;
  • Family Court of Australia;
  • Family Law Council;
  • Federal Court of Australia;
  • Federal Magistrates Court of Australia;
  • Federal Police Disciplinary Tribunal;
  • Industrial Relations Court of Australia;
  • Insolvency and Trustee Service Australia;
  • Migration Review Tribunal and Refugee Review Tribunal;
  • National Native Title Tribunal; and
  • Office of the Parliamentary Counsel.

2.2        In this report, the committee has chosen to examine in greater detail the annual reports of the following agencies: the Australian Customs Service (ACS) and the Australian Federal Police (AFP).

Australian Customs Service

2.3        The ACS advised that its operational expenditure in 2005-06 was $1.026 billion, up from $926.2 million in the 2004-05 period. The ACS also reported a net operating surplus of $2.7 million, significantly less than the $37.1 million surplus reported for the period 2004-05.[1]

2.4        The ACS also reported duties collection of over $5 billion in 2004-2005, representing a decrease of $573 million from 2004-05, largely due to the commencement of several trade agreements.[2] In addition, the ACS administered $1.738 billon of Government concessions.[3]

2.5        The table below lists seizures for the 2005-06 financial year compared with the 2004-05 financial year:

Substance

2004-05

2005-06

Cocaine

197 kg

83 kg

MDMA (ecstasy)

2,378 kg

413 kg

Amphetamines

157 kg

90 kg

Heroin

173 kg

47 kg

Cannabis

4 kg

47 kg

2.6        Although the 2005-06 period saw a large decrease in the overall amount (kg) of illicit drugs and precursor chemicals seized, the ACS reported an overall increase in the number of detections. The committee recommends that, in future, the ACS include a brief explanation of factors that have affected the numbers and quantities of detections during the reporting period.[4]

2.7        The ACS reported that the most significant event of 2005-06 was the implementation of the Cargo Management Re-engineering (CMR) imports module which represented the final stage of the Integrated Cargo System (ICS). The new ICS consolidated, for the first time, the import declaration and the import cargo reporting business processes for both industry and the ACS.

2.8        Initially estimated by the ACS to cost $30 million, total costs for the ICS project are now in excess of $200 million.[5] In its report on Customs' Cargo Management Re-engineering Project of 7 February 2007, the Australian National Audit Office (ANAO) made a number of recommendations, all of which have been accepted by ACS.

2.9        The committee will continue to closely monitor ACS's implementation of the Auditor-General's recommendations.

2.10      The inclusion of a compliance index greatly assisted the committee in its examination of the ACS's annual report.

2.11      The committee considers the annual report of the ACS to be 'apparently satisfactory'.

Australian Federal Police (AFP)

2.12      During the 2005-06 period, the AFP reported a net surplus of $5.806 million. The AFP returned $165.7 million of unspent appropriations relating to a cancelled deployment to Papua New Guinea.[6]

2.13      On Monday 16 October 2006 the committee used its powers under Standing Order 25(2)(b) to examine the AFP at a public hearing. The committee sought clarification of issues relating to the AFP's financial statements, particularly the causes of fluctuations in the receivables projections of the AFP. Standing Order 25(2)(b), together with estimates hearings and the examination of annual reports, allow the committee to actively oversee the performance of departments and agencies and is an important accountability tool. The committee thanks the AFP for their assistance in attending this hearing and in providing additional information to address the committee's queries.

2.14      During the 2005-06 period the AFP reported a high operational tempo, with international operations continuing to be a key feature. In his overview, the AFP Commissioner Mick Keelty APM noted the ongoing challenge of balancing international and domestic demands.[7] Some significant features of the 2005-06 period, as highlighted by the Commissioner included:

  • responding to instability in the region;
  • undertaking airport security; and
  • investigation of major frauds.

2.15      At the close of the reporting period the AFP had five deployments to countries in the Asia-Pacific:

  • Solomon Islands;
  • Nauru;
  • Timor-Leste;
  • Vanuatu; and
  • Papua New Guinea.

2.16      The AFP reported that challenges during the 2005-06 year were greatest in the Solomon Islands and Timor-Leste with both countries experiencing major civil unrest. The committee appreciates the inclusion of detailed summaries of all current overseas deployments in the AFP's annual report.

2.17      During the reporting period the AFP began implementation of a Unified Policing Model (UPM) at Australia's 11 designated airports. The UPM aims to provide a more coordinated approach to security at Australia's airports. During the reporting period 11 Airport Police Commanders were deployed to the 11 airports to implement the UPM. In addition, Joint Airport Investigation Teams were established to undertake investigations into serious and organised crime in the airport and aviation environment.

2.18      AFP investigations into a major fraud committed against the Commonwealth Superannuation Scheme resulted in six people being charged. The AFP also participated in the largest ever joint investigation with the Australian Crime Commission, the Australian Tax Office, and the Commonwealth Director of Public Prosecutions. The investigation focused on offshore structures designed to avoid or evade tax.

2.19      The inclusion of a compliance index greatly assisted the committee in its examination of the AFP's annual report.

2.20      The committee considers the annual report of the AFP to be 'apparently satisfactory.'

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