Chapter 1
Overview
1.1
The committee is responsible for examining the annual reports of
departments and agencies within two portfolios:
- Agriculture, Fisheries and Forestry; and
- Infrastructure, Transport, Regional Development and Local
Government.
Terms of reference
1.2
Under Senate Standing Order 25(20), 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; 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.[1]
Purpose of annual reports
1.3
The tabling and scrutiny of annual reports by Senate committees, under
Standing Order 25(20), is an important element in the process of accountability
to Parliament. The information provided in annual reports is placed on the
public record and assists Parliament in its examination of the performance of
departments and agencies and the administration of government programs.
Requirements
1.4
Annual reports are examined by the committee to determine whether they
are timely and 'apparently satisfactory'. In forming its assessment, the
committee considers whether the reports comply with the relevant legislation
and guidelines for the preparation of annual reports:
- for departments of state and executive agencies these are: the 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, updated June 2009 and approved by the Joint
Committee of Public Accounts and Audit on 17 June 2009;
- for Commonwealth authorities and companies: the Commonwealth
Authorities and Companies Act 1997 (the CAC Act), sections 9, 36 and
48, and the Commonwealth Authorities and Companies (Report of Operations)
Orders 2005 (CAC Orders); and
- for non-statutory bodies: the requirements 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, pp 2643–45.
Reports referred to the committee
1.5
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. This year, that date is 11 March 2010. The committee is also
required to report on annual reports tabled by 30 April each year by the tenth
sitting day after 30 June of that year.
1.6
This report considers annual reports which were tabled in the Senate or
presented to the President of the Senate between 1 May 2009 and 31 October
2009.
1.7
The committee examined eight annual reports of agencies within the
Agriculture, Fisheries and Forestry portfolio and six annual reports of
agencies within the Infrastructure, Transport, Regional Development and Local
Government portfolio, as follows:
- Department of Agriculture, Fisheries and Forestry—Report for 2008-09;
- Australian Wine and Brandy Corporation—Report for 2008-09;
- Australian Pesticides and Veterinary Medicines Authority—Report
for 2008-09;
- Wheat Exports Australia—Report for 2008-09;
- Northern Territory Fisheries Joint Authority—Report for 2006-07;
- Queensland Fisheries Joint Authority—Report for 2005-06;
- Torres Strait Protected Zone Joint Authority—Report for 2006-07;
- Western Australian Fisheries Joint Authority—Report for 2004-05;
- Department of Infrastructure, Transport, Regional Development and
Local Government—Report for 2008-09;
- Airservices Australia—Report for 2008-09;
- Civil Aviation Safety Authority—Report for 2008-09;
- National Transport Commission—Report for 2008-09;
- Australian River Co. Limited—Report for 1 December 2007 to
30 November 2008; and
- International Air Services Commission—Report for 2008-09.
1.8
A complete list of reports referred to the committee (including those
not examined) 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 13 documents were
referred to the committee but have not been examined:
- Australian Meat and Live-stock Industry Act 1997—Report to
Parliament on Live-stock Mortalities for Exports by Sea for the Reporting
Period 1 January to 30 June 2009;
- Australian Meat and Live-stock Industry Act 1997—Report to
Parliament in relation to statutory funding agreement with the Australian
Livestock Export Corporation Limited (LiveCorp)—Report for 2007-08;
- Dairy Australia Limited—Deed of variation to statutory funding
agreement with the Commonwealth (Deed dated September 2009);
- Dairy Produce Act 1986— Report to Parliament in relation
to statutory funding agreement with Dairy Australia Limited—Report for 2007-08;
- Regional Forest Agreement for the Eden Region of New South Wales
– Progress on the implementation of the Regional Forest Agreement for the Eden
Region—Report for 2004-05;
- Regional Forest Agreement for the North East Region of New South
Wales (Upper North East and Lower North East Regions) – Progress on the
implementation of the Regional Forest Agreement for the North East Region—Report
for 2004-05;
- Regional Forest Agreement for the Southern Region of New South
Wales – Progress on the implementation of the Regional Forest Agreement for the
Southern Region—Report for 2004-05;
-
Regional Forest Agreement for the Southern Region of New South
Wales – Progress on the implementation of the Regional Forest Agreement for the
Southern Region—Report for 2005-06;
- Airservices Australia—Corporate Plan 2009-2014;
- Australian Rail Track Corporation Ltd—Statement of corporate
intent 2009-10;
- Local Government (Financial Assistance) Act 1995—Report
for 2006-07 on the operation of the Act;
- Sydney Airport Demand Management Act 1997—quarterly report
on the maximum movement limit for the period 1 January to 31 March 2009; and
- Sydney Airport Demand Management Act 1997—quarterly report
on the maximum movement limit for the period 1 April to 30 June 2009.
Timeliness
1.10
Standing Order 25(20)(c) requires the committee to report to the Senate
on the late presentation of annual reports.
1.11
As stated in the Requirements for Annual Reports for Departments,
Executive Agencies and FMA Act Bodies (Requirements for Annual Reports),
annual reports must be tabled in Parliament by 31 October each year, except
where an agency's own legislation specifies a timeframe for its annual report.[2]
Those agencies reporting under the CAC Act are required to provide their annual
reports to the Minister by the 15th day of the fourth month after the end
of the financial year.[3]
Where the financial year ends on 30 June, this deadline translates to 15
October.
1.12
A number of annual reports were tabled in the Senate after the
appropriate deadlines, beyond the date that they may be considered in this
report. Annual reports which were tabled late will be examined in the
committee's next report on annual reports. A list of those reports appears at
Appendix 2.
1.13
Although not subject to the timeframes in the CAC Act or the Financial
Management and Accountability Act 1997 (FMA Act), the committee notes significant
delays in the tabling of the following reports:
- Northern Territory Fisheries Joint Authority—Report for 2006-07;
- Queensland Fisheries Joint Authority—Report for 2005-06;
- Torres Strait Protected Zone Joint Authority—Report for 2006-07;
- Western Australian Fisheries Joint Authority—Report for 2004-05;
- Regional Forest Agreement for the Eden Region of New South Wales
– Progress on the implementation of the Regional Forest Agreement for the Eden
Region—Report for 2004-05;
- Regional Forest Agreement for the North East Region of New South
Wales (Upper North East and Lower North East Regions) – Progress on the
implementation of the Regional Forest Agreement for the North East Region—Report
for 2004-05;
- Regional Forest Agreement for the Southern Region of New South
Wales – Progress on the implementation of the Regional Forest Agreement for the
Southern Region—Report for 2004-05;
- Regional Forest Agreement for the Southern Region of New South
Wales – Progress on the implementation of the Regional Forest Agreement for the
Southern Region—Report for 2005-06; and
- Local Government (Financial Assistance) Act 1995—Report
for 2006-07 on the operation of the Act.
1.14
The committee recognises that some bodies are required to comply with
the timeframes stipulated in their enabling legislation, and appreciates that
the relevant deadlines are adhered to by those agencies. Nonetheless, the
committee reminds all bodies that, as stated in the Requirements for Annual
Reports, the government maintains its policy that all annual reports are to be
tabled by 31 October.[4]
Comments on reports
1.15
Under Standing Order 25(20)(a) the committee is required to scrutinise
annual reports and inform the Senate as to whether they are 'apparently
satisfactory'. To form this assessment the committee examines whether annual
reports comply with the statutory reporting guidelines relevant to each
particular report.
1.16
The committee considers that the reports examined are generally
'apparently satisfactory', although some do not comprehensively address all of
their legislative requirements. While any divergence from these requirements is
mostly minor in nature, the committee encourages agencies to pay particular
attention to the matters discussed below.
Aids to Access: Indexes
Alphabetical indexes
1.17
Under subsection 8(2) of the Requirements for Annual Reports, all annual
reports are required to incorporate aids to access, including alphabetical
indexes.[5]
The committee notes the importance of an alphabetical index in assisting
readers to navigate annual reports. While most reports did include alphabetical
indexes, some were quite brief and did not effectively aid readers. The
committee again notes that the National Transport Commission (NTC) would
benefit from including an alphabetical index.
Compliance indexes
1.18
As mentioned in the committee's previous reports on annual reports,
although compliance indexes are no longer mandatory, the committee recommends
their inclusion in annual reports.[6]
Compliance indexes greatly facilitate the committee's task of ensuring
adherence to reporting requirements, and also assist agencies to clearly
demonstrate that all legislative obligations have been met.
1.19
The committee found that some compliance indexes were more useful than
others. A number of compliance indexes did not address all of the reporting
requirements and, in some cases, the page references given in the compliance
indexes were incorrect or too broad to be useful.
1.20
The committee commends those agencies which included compliance indexes
for each piece of legislation they are required to report under. Further, the
committee is pleased that a number of agencies have now adopted the recommended
practice of including a nil, n/a or "-" entry where the body has
nothing to report under an item.
1.21
The committee is disappointed that despite comments made in its previous
reports, the NTC again failed to include a compliance index in its annual
report.[7]
Consequently the committee found it difficult to determine whether this report
complied with a number of relevant requirements.
Report on performance
1.22
The committee considers that most annual reports would benefit from an
explanation (textual or visual) which clearly defines and links, where
applicable, statutory objectives, annual operational plan or corporate plan
objectives, research and development objectives and outputs/outcomes. This
would assist in demonstrating how agencies have performed in relation to each
of these requirements, as required under the CAC Orders, and whether they have
achieved their objectives.[8]
Legislative requirements for
Commonwealth authorities
1.23
The committee draws attention to section 17 of the CAC Orders which
notes that the annual reports of Commonwealth authorities must include certain
matters required by the relevant sections of the following legislation:[9]
- Environment Protection and Biodiversity Conservation Act 1999
(EPBC Act) section 516A;
- Freedom of Information Act 1982 (FOI Act) subsection
8(1) ; and
- Occupational Health and Safety (Commonwealth Employment) Act
1991 (OH&S Act) section 74.
1.24
The committee encourages agencies to look carefully at the reporting requirements
under these pieces of legislation when compiling upcoming reports.
1.25
The committee reminds agencies that they are required to report on all
five requirements under subsection 516A(6) of the EPBC Act. Several agencies
failed to include information required under paragraphs 516(6)(c) and (e) of
the EPBC Act, in relation to documenting the effect of activities on the
environment and mechanisms for reviewing and improving these measures. The
committee encourages agencies to address these requirements in more detail in
future.
1.26
The committee observed that several agencies did not adequately address
all requirements under subsection 8(1) of the FOI Act. In particular, the
committee observed that a number of bodies omitted to provide information on
arrangements that exist for others to participate in the agency's policy
formulation process. The committee notes that Airservices Australia, the Civil
Aviation Safety Authority (CASA) and the Department of Agriculture, Fisheries
and Forestry (DAFF) addressed the FOI requirements comprehensively.
1.27
Omissions were again noted in most agencies' attempts to report against
the OH&S Act, particularly regarding paragraph 74(1)(c). The committee
considers that the DAFF and CASA annual reports provide good examples of how this
requirement should be addressed.
Commonwealth Disability Strategy
1.28
Under section 18 of the CAC Orders, an assessment of an authority's
performance in implementing the Commonwealth Disability Strategy (the Strategy)
must be provided in accordance with the terms set out in the Guide to the
Performance Reporting Framework.[10]
The committee again observed significant variation in the level of detail
provided regarding compliance with the Strategy. The committee strongly encourages
agencies to assess compliance in accordance with the recommended guide in future
reports. The committee considers that the Department of Infrastructure,
Transport, Regional Development and Local Government (Infrastructure) has addressed
this requirement to a high standard.
Consultancy contracts and
competitive tendering and contracting
1.29
The committee notes that under the Requirements for Annual
Reports, agencies are required to provide information about consultancy
contracts and any competitive tendering and contracting undertaken.[11]
The committee reminds agencies that the method of presentation for this
information is specified in detail in the Requirements for Annual Reports.
While a majority of agencies provided basic information about consultancies, some
of it was not in the required format and did not provide an adequate level of
detail. In several annual reports, however, the committee was unable to locate
any information about consultancies.
1.30
Consequently, the committee emphasises that, as a matter of best
practice, CAC Act bodies should comply with the Requirements for Annual
Reports, and provide all relevant detail in accordance with the required
proforma. Further, the committee suggests that all agencies list consultancy
and contract services in the compliance index or at the very least in the alphabetical
index of their annual reports.
1.31
The committee commends Infrastructure, Wheat Exports Australia (WEA) and
the Australian Pesticides and Veterinary Medicines Authority (APVMA) for fully
complying with this requirement and providing information on consultancy
services in accordance with the mandatory proforma.
Fraud Control Certification
1.32
While most agencies provided varying degrees of information about their
fraud control plans, the committee draws attention to the Commonwealth Fraud
Control Guidelines 2002. Under these guidelines:
CEOs of agencies covered by the Commonwealth Fraud Control
Guidelines are to certify to their Minister or Presiding Officer in their
agency's annual report that they are satisfied that their agency has prepared
fraud risk assessments and fraud control plans, and has in place appropriate
fraud prevention, detection, investigation, reporting and data collection
procedures and processes that meet the specific needs of the agency and comply
with the Guidelines.[12]
1.33
The committee encourages agency heads to make a specific certification
in keeping with the guidelines. The committee highlights the Australian Wine
and Brandy Corporation (AWBC), DAFF and Infrastructure annual reports as
examples of how to fully comply with this requirement.
Consistency of reporting documents
1.34
The committee also took account of the Senate Finance and Public
Administration Committee report, Transparency and accountability of
Commonwealth public funding and expenditure, in its examination of annual
reports. The committee took particular note of the following comment:
It would be useful therefore if Legislative and General
Purpose Committees in their reports on annual reports checked that the reports
accurately reflect the performance indicators in the PBSs and PAES. It would
also be useful if they reported on comparisons of the final expenditure on
outputs (or programs) with the estimates.[13]
1.35
The committee notes that in several cases, performance indicators
differed between budget documents and agencies' annual reports. The committee
also found that estimates expenditure figures in budget documents and actual
expenditure figures in annual reports were often not easily comparable.
1.36
The committee encourages agencies to ensure that outcome/output
information and performance indicators remain consistent between budget
documents and annual reports. Further, where there is variation between these
documents, the accountability process would be enhanced if both the former and
the new performance information were provided, as well as the reasons for the
revisions.
1.37
The committee notes that under the Requirements for Annual Reports the
provision of such information is a mandatory requirement, and as a matter of
best practice, CAC Act bodies should also provide this information.[14]
In addition, agencies are encouraged to provide information on expenditure by
outcome/output in a form that is comparable with budget documentation.
1.38
Once again, the committee notes that Infrastructure has complied with
this requirement particularly well. New or modified performance indicators
since the 2008-09 Portfolio Budget Statements (PBS) are clearly identified in a
table format at Appendix K of Infrastructure's annual report.
Senate remarks on annual reports
1.39
In accordance with Senate Standing Order 25(20)(d), the committee is
required to take into account remarks made in the Senate which are relevant to
the annual reports under consideration. No substantive debate on annual reports
within the committee's portfolios took place in the Senate.
Comment on significant matters
1.40
Finally, Senate Standing Order 25(20)(g) directs the committee to
comment on significant matters raised in annual reports relating to the
operations and performance of reporting bodies.
1.41
In Chapter 2, the committee has considered the following annual reports:
- Department of Agriculture, Fisheries and Forestry; and
- Department of Infrastructure, Transport, Regional Development and
Local Government.
1.42
In Chapter 3, the committee has considered the annual reports of the
following agencies:
- Australian Wine and Brandy Corporation;
- Australian Pesticides and Veterinary Medicines Authority;
- Wheat Exports Australia;
- Airservices Australia;
- Civil Aviation Safety Authority; and
- National Transport Commission.
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