Chapter 1
Overview
1.1
The committee is responsible for examining the annual reports of
departments and agencies within three portfolios:
-
Agriculture, Fisheries and Forestry;
-
Infrastructure and Transport; and
-
Regional Australia, Local Government, Arts and Sport.
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 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 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.
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 (Requirements
for Annual Reports), Department of the Prime Minister and Cabinet
(PM&C), approved by the Joint Committee of Public Accounts and Audit on 6
July 2011 and updated by PM&C on 8 July 2011;
-
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
2008 (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.
1.5
The committee notes that on 22 September 2011 the Finance Minister
signed the Commonwealth Authorities (Annual Reporting)
Orders 2011. These Orders commenced on 14 October 2011, the day
after registration, and replace the Commonwealth Authorities and Companies
(Annual Reporting) Orders 2008.[1]
1.6
The Finance Minister also signed the Commonwealth Companies (Annual
Reporting) Orders 2011 on 22 September 2011. These Orders commenced on
13 October 2011, the day after registration. The committee notes
that, prior to these Orders, 'no reporting Orders have been issued for
wholly-owned Commonwealth companies'[2]
and that these Orders require Commonwealth companies to report specific public
sector issues in their annual reports, in addition to the requirements of the Corporations
Act 2001.[3]
1.7
Annual reports for Commonwealth authorities and companies for the 2011-12
financial year should be prepared in accordance with the Commonwealth
Authorities (Annual Reporting) Orders 2011, and the Commonwealth
Companies (Annual Reporting) Orders 2011, respectively.
Reports referred to the committee
1.8
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 15 March 2012. 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, this year, that date is 12 September 2012.
1.9
On 8 February 2012, the Senate amended the continuing order relating to
the allocation of departments and agencies to committees. The change of
allocations resulted in the Rural Affairs and Transport Committee changing its
name to the Rural and Regional Affairs and Transport Committee. The change also
resulted in the recently established Regional Australia, Local Government, Arts
and Sport portfolio moving from the Finance and Public Administration Committee's
responsibilities to the Rural and Regional Affairs and Transport Committee's
responsibilities. The committee now has responsibility for the oversight of the
following portfolios:
-
Agriculture, Fisheries and Forestry;
-
Infrastructure and Transport; and
-
Regional Australia, Local Government, Arts and Sport.[4]
1.10
As these changes occurred after 31 October 2011, reports within the Regional
Australia, Local Government, Arts and Sport (RALGAS) portfolio, can be found in
the Finance and Public Administration Committee's Report on Annual Reports
(No. 1 of 2012).[5]
Reports from the RALGAS portfolio which were tabled after
31 October 2011 and by 30 April 2012 will be considered in this
committee's Report on Annual Reports (No. 2 of 2012).
1.11
This report considers annual reports which were tabled in the Senate or
presented to the President of the Senate between 1 May 2011 and 1 November 2011.
The committee notes that the Report on Annual Reports (No.1)
considers reports tabled between 1 May and 31 October, however, five annual
reports, including the Department of Infrastructure and Transport's annual
report, were tabled in the Senate on 1 November 2011.[6]
The committee reminds Departments, and executive and prescribed agencies, that
annual reports must be tabled in each House of Parliament by 31 October[7],
and that:
If Senate Estimates is scheduled to occur prior to 31
October, it is best practice for annual reports to be tabled prior to those
hearings.[8]
1.12
The committee examined two annual reports of agencies within the
Agriculture, Fisheries and Forestry portfolio and five annual reports of
agencies within the Infrastructure and Transport portfolio, as follows:
-
Department of Agriculture, Fisheries and Forestry—Report for
2010-11;
-
Australian Pesticides and Veterinary Medicines Authority—Report
for 2010-11;
-
Wine Australia—Report for 2010-11;
-
Department of Infrastructure and Transport—Report for 2010-11;
-
Airservices Australia—Report for 2010-11;
-
Australian Maritime Safety Authority—Report for 2010-11;
-
Civil Aviation Safety Authority—Report for 2010-11;
-
National Transport Commission—Report for 2010-11; and
-
Australian Rail Track Corporation—Report for 2010-11.
1.13
A complete list of reports referred to the committee (including those
not examined) appears at Appendix 1.
Reports not examined
1.14
The committee is not obliged to report on Acts, statements of corporate
intent, surveys, corporate plans or errata. The following four documents were
referred to the committee but have not been examined:
-
Acts Interpretation Act 1901—Statement pursuant to
subsection 34C(7) relating to the delay in presentation of a report—Australian
Meat and Live-stock Industry Act 1997—Funding agreement 2010-14 between the
Commonwealth of Australia and Australian Livestock Export Corporation Limited
(Livecorp);
-
Australian Meat and Live-stock Industry Act 1997—Funding
agreement 2010-14 between the Commonwealth of Australia and Australian
Livestock Export Corporation Limited (Livecorp);
-
Sydney Airport Demand Management Act 1997—Quarterly report
on the maximum movement limit for Sydney Airport for the period 1 April to 30
June 2011; and
-
Sydney Airport Demand Management Act 1997—Quarterly report
on the maximum movement limit for Sydney Airport for the period 1 July to
30 September 2011.
Timeliness
1.15
Standing Order 25(20)(c) requires the committee to report to the Senate
on the late presentation of annual reports.
1.16
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.[9]
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.[10]
Where the financial year ends on 30 June, this deadline translates to 15
October.
1.17
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. Five reports within the Infrastructure and Transport portfolio were
tabled one day after the reporting deadline but have still been considered in
this report. Those reports tabled late but still considered in this report are
as follows:
-
Airservices Australia—Report for 2010-11;
-
Australian Maritime Safety Authority—Report for 2010-11;
-
Civil Aviation Safety Authority—Report for 2010-11;
-
Department of Infrastructure and Transport—Report for 2010-11;
and
-
National Transport Commission—Report for 2010-11.
Comments on reports
Changes to legislative requirements
for Departments, Executive Agencies and FMA Act Bodies
1.18
The committee notes that the Information Publication Scheme, introduced
in May 2011, has replaced the former annual report publication requirements in
section 8 of the Freedom of Information Act 1982 (FOI Act). For the
period 1 July 2010 to 30 April 2011, annual reports should contain a
section 8 statement, explaining these changes.[11]
1.19
With the introduction of a new National Disability Strategy, the
reporting requirements for the Commonwealth Disability Strategy have been
discontinued. Annual reports must now include an explicit and transparent
reference to other disability reporting mechanisms, specifically noting where
agency level information can be found.[12]
1.20
The committee also notes new reporting requirements for departments
whose activities impact on social inclusion outcomes, which require information
about relevant programs and progress in relation to social inclusion strategic
change indicators.[13]
Changes to departmental structure
1.21
On 14 September 2010, the Australian Government issued a new Administrative
Arrangements Order (AAO). This resulted in the Department of Infrastructure and
Transport reducing its outcomes from three to two, and transferring its Regional
Development and Local Government functions to the recently established
Department of Regional Australia. The Department of Infrastructure and
Transport's Annual Report 2010-11 reflects the outcome and program
structure and key performance indicators published in the 2010-11 Portfolio Budget
Statement (PBS), with regard to the AAO of 14 September 2010.
List of requirements/Compliance
index
1.22
The committee is pleased to note that a number of annual reports have
improved their compliance indexes and reporting on requirements listed in the
compliance index. A 'List of Requirements' is a mandatory inclusion specified
in the Requirements for Annual Reports.[14]
This list greatly facilitates the committee's task of ensuring adherence to
reporting requirements, as well as assisting agencies to clearly demonstrate
that all legislative obligations have been met.
1.23
The committee considers that as a matter of best practice, CAC Act
bodies should provide equivalent information in the form of a compliance index
based on requirements in the CAC Act and their own governing legislation.
1.24
The committee is especially pleased with the Australian Rail Track Corporation
and the National Transport Commission's inclusion of a complete compliance
index, and reporting on items that were not included in previous reports.
Report on performance
1.25
The committee considers that most annual reports have provided a clear
and thorough report on performance. Annual reports that contained the
information presented in tables, with a status marking items as 'achieved' or
'partially achieved' were especially effective in demonstrating performance in
relation to requirements, and whether or not objectives were achieved. The
Requirements of Annual Reports specifies that the review must include:
a statement noting if the department has historically met
each Key Performance Indicator (KPI). For those KPIs that have not been
achieved, a brief explanation is to be included.[15]
1.26
The committee considers that the Department of Infrastructure and
Transport has fulfilled this reporting requirement to a high standard.
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