Chapter One - Review of Annual Reports:IntroductionSenate Standing Orders


Chapter One - Review of Annual Reports:IntroductionSenate Standing Orders

1.1                 In accordance with Senate Standing Order 25(21), annual reports of departments and agencies shall stand referred to the legislation 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.

(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.[1]

Purpose and requirements of annual reports

1.2                 Annual reports provide information on the success (or otherwise) of departments and agencies in meeting targets outlined in the portfolio budget statements, their primary function being to assist in ensuring the public accountability of government departments and their agencies. This is undertaken through the tabling of annual reports in the Parliament; and their scrutiny by Senate Committees in accordance with Senate Standing Order 25(21). This process thus allows Parliament to make informed judgments on the executive's performance in administering government programs.

1.3                 Departments of State and Executive Agencies present their annual reports pursuant to sections 63(2) and 70(2) of the Public Service Act, respectively. These are required to comply with the Department of Prime Minister and Cabinet's Requirements for Annual Reports (updated June 2004), approved by the Joint Committee of Public Accounts and Audit on 23 June 2004.

1.4                 Statutory authorities and government companies present their annual reports pursuant to their own enabling legislation and/or sections 9 and 36 of the Commonwealth Authorities and Companies Act 1997 (CAC Act), respectively. These reports must be produced in accordance with the Commonwealth Authorities and Companies (Report of Operations) Orders 2002, the Finance Minister's Orders made under s48 of the CAC Act, stipulating the requirements for annual reports presented pursuant to the Act. Annual reports of government companies limited by shares are required to comply with Corporations Law requirements.

Timing and presentation of reports on annual reports

1.5                 Under Standing Order 25(21)(f), legislation committees are required to report on annual reports tabled by 31 October each year by the tenth sitting day of the following year. In this instance, that date is 16 March 2005. Committees are also required to report on annual reports tabled by 30 April each year by the tenth sitting after 30 June of that year.

1.6                 The Committee examines the annual reports of the Department of Agriculture, Fisheries and Forestry and the Department of Transport and Regional Services, in addition to the annual reports of those agencies reporting through those two ministerial portfolios.

1.7                 This report considers those annual reports tabled between 30 April 2004 and 31 October 2004. Due to the impact of the 2004 federal election, this report will also include those reports provided to the Senate before 31 October, but tabled early in the 41st parliament.

1.8                 A complete list of reports referred to the Committee appears at Appendix 1.

Reports not examined

1.9                 The Committee is not obliged to report on Acts, statements of corporate intent, surveys, corporate plans or errata. The following documents were referred to the Committee and not examined:

    • CASA Corporate Plan 2004-05 to 2006-07
    • Department of Agriculture Fisheries and Forestry – Innovating rural Australia: Research and development corporation outcomes report 2003
    • Report on Movement Cap for Sydney Airport 1 January to 31 March 2004
    • Report on Movement Cap for Sydney Airport 1 April to 30 June 2004

Timeliness

1.10             Standing Order 25(21)(c) requires the Committee to report to the Senate on the late presentation of annual reports.

1.11             Section 4 of the Requirements for Annual Reports states that annual reports are to be laid before the parliament on or before 31 October in the year the report is given. Section 9 of the CAC Act stipulates that the deadline for furnishing the Minister with relevant annual reports is the 15th day of the 4th month after the end of the financial year, that is, 15 October where the end of the financial year is 30 June.

1.12             The Committee notes that government agencies reporting in accordance with their own legislation are often required to prepare for the relevant Minister their annual report 'as soon as is practicable' after a particular date. The Committee draws attention to sections 34C(2) and (3) of the Acts Interpretation Act 1901, which stipulate that: where no date for providing a report to a Minister is specified, the report needs to be presented no more than six months after the reporting period, and the Minister must provide the report to the Parliament within 15 sitting days after he receives it.

1.13             A number of annual reports were tabled in the Senate after the relevant deadlines, and beyond the date they may be considered within this report. In most cases, this was due to delays in Ministers providing the reports for tabling, rather than the agencies themselves failing to meet the deadline for publishing their annual report. The agencies whose reports were tabled late and will be examined in the next report on annual reports are:

  • Airservices Australia Annual Report 2003-04;
  • Australian Fisheries Management Authority Annual Report 2003-04;
  • Australian Pesticides and Veterinary Medicines Authority Annual Report 2003-04;
  • Civil Aviation Safety Authority Annual Report 2003-04;
  • Dairy Adjustment Authority Annual Report 2003-04;
  • Dairy Australia Annual Report 2003-04;
  • Department of Transport and Regional Services Annual Report 2003-04;
  • Fisheries Research and Development Corporation Annual Report 2003-04;
  • Forest and Wood Products Research and Development Corporation Annual Report 2003-04;
  • Grains Research and Development Corporation Annual Report 2003-04;
  • Grape and Wine Research and Development Corporation Annual Report 2003-04;
  • Land and Water Australia Annual Report 2003-04;
  • National Capital Authority Annual Report 2003-04;
  • Rural Industries Research and Development Corporation Annual Report 2003-04;
  • Sugar Research and Development Corporation Annual Report 2003-04.

Comments on reports

1.14             In accordance with Standing Order 25(21)(a) the Committee is required to examine reports and inform the Senate as to whether they are 'apparently satisfactory'. The Committee considers compliance with the reporting guidelines stipulated by the legislation under which various departments and agencies present their annual reports.

1.15             The Committee is pleased to note that the annual reports examined adhered satisfactorily to the relevant reporting requirements and were presented to a high standard. Where relevant, reports detailed programs and activities with a focus on performance measurement against outcomes and goals, in relation to forecasts listed in the Portfolio Budget Statements.

1.16             The Committee notes section 6(2) of the Commonwealth Authorities and Companies (Report of Operations) Orders 2002, which states that the report of operations "should be free of ambiguity, jargon and excessive use of acronyms and technical terms".

1.17             Further, while not strictly required, the Committee recommends the inclusion of a compliance index in annual reports.

1.18             Unfortunately, the Murray-Darling Basin Commission's 2002-03 annual report was not only presented late (tabled 3 August 2004), but also failed to comment on corporate governance practices and whether or not the Commission's activities had been subject to judicial review. These omissions were repeated in the 2003-04 report and the Committee urges the Commission to rectify this in its next annual report.

1.19             The Committee encourages all agencies to provide a specific date with the letter of transmittal. In their 2003-04 annual report, the Stevedoring Industry Finance Committee left their transmittal undated. Likewise, the Australian Maritime College did not provide a specific date in their 2003 annual report, and are requested to do so next year.

Senate debate on annual reports

1.20             Senate Standing Order 25 (21) (d) directs the Committee to take into account remarks made in the Senate when considering annual reports.

1.21             None of the annual reports considered in this report were remarked upon in the Senate. Remarks relating to the Department of Transport and Regional Services will be examined in the next report.

Comment on significant matters

1.22             Finally, in accordance with Senate Standing Order 25 (21) (g), the Committee is required to comment on significant matters raised in annual reports. In addition to its consideration of the departmental annual reports in Chapter Two, the Committee has also considered the reports of the following agencies in Chapter Three:

    • Australian Wine and Brandy Corporation Annual Report 2003-04;
    • Stevedoring Industry Finance Committee Annual Report 2003-04; and
    • Albury-Wodonga Development Corporation Annual Report 2003-04.