Chapter 2

Annual reports of agencies

2.1        This chapter examines selected annual reports received during the period 1 May to 31 October 2015.

Agriculture and Water Resources Portfolio

Department of Agriculture – Annual Report 2014-15

2.2        The Secretary's review outlined the core activities of the Department of Agriculture (the department) over the 2014-15 period. A small sample of these activities include the implementation of the agriculture elements of new free trade agreements, continued regulatory reform (particularly in regard to agricultural and veterinary chemicals access) and the delivery of the Drought Concessional Loans Scheme.[1]

2.3        In terms of financial performance, the department ender the year with a $19.6 million operating surplus, compared to the budgeted deficit of $13.3 million as forecast in the Portfolio Budget Statements 2014-15, before allowing for net cash appropriation arrangements. The report noted that departmental revenue increased by $25.0 million from 2013-14 to $406.4 million, largely as a result of high levels of activity in cost-recovery arrangements. The report also reiterated the department's focus on ensuring the cost-recovered services remained efficient, transparent and sustainably funded.[2]

2.4        The report noted the new biosecurity legislation passed in May 2015 and the work done by the department over the previous 6 years in support of it. The Biosecurity Act 2015 will come into effect in June 2016, and the department has been working on an implementation program to ensure staff and external stakeholders are familiar with the new legislation.[3]

2.5        The committee notes that the department achieved 100 out of its 114 key performance indicators (KPI) across the two outcomes and 15 programs outlined in the Portfolio Budget Statements.[4] Of the remaining 14 indicators, eight were 'partially met', two were 'not met', two were not applicable, and one was unable to be reported on. The department provided detailed explanations under the relevant program sections for these 14 KPI that were not achieved, and the committee commends the department for providing comprehensive accounts of these issues.[5]

2.6        The committee considers the department's 2014-15 annual report to be compliant with the reporting requirements and completed to a high standard.

Australian Fisheries Management Authority – Annual Report 2014-15

2.7        The Australian Fisheries Management Authority (AFMA) 2014-15 report provides details of the performance and operations of the agency. The Chairman's and Chief Executive Officer's review noted key achievements such as the introduction of camera-based electronic monitoring in a number of fisheries, the re-opening of the eastern orange roughy fishery off eastern Tasmania, and improved results in the domestic compliance and enforcement programs aimed at deterring illegal fishing in Commonwealth fisheries.[6]

2.8        The report provided an update on the work being undertaken by AFMA to prevent unacceptable impacts of Commonwealth fisheries on marine ecosystems and organisms, including further development of the Ecological Risk Assessment and Risk Management framework.[7]

2.9        AFMA also set out achievements related to KPI for managing illegal foreign fishing activity, giving a 67 percent disposal rate of apprehended forfeited vessels. The report explained this statistic, noting that of the six foreign fishing vessels apprehended, only three were received by AFMA. Two of these vessels were disposed of on land, and at the time of writing the third remained in AFMA custody on Thursday Island awaiting disposal. The three further vessels apprehended but not received by AFMA were unseaworthy and sank before reaching port. [8]

2.10       The committee considers the 2014-15 report to be comprehensive and compliant with the reporting requirements.

Infrastructure and Regional Development Portfolio

Department of Infrastructure and Regional Development – Annual Report 2014-15

2.11      The annual report of the Department of Infrastructure and Regional Development (the department) provided details on the broad scope of work the department had undertaken over the 2014-15 period. This work included activities related to infrastructure planning, investment, financing and coordination, maritime transport (including shipping), land transport, transport security, transport safety, civil aviation and airports, territories reform and service delivery, and local government and reconstruction initiatives. In particular, the Secretary's report illustrated how the spectrum of infrastructure-related work ranged from high-profile projects such as WestConnex in Sydney, to programs such as Roads to Recovery, an initiative accessed by over 490 local councils during the financial year.[9]

2.12      In regard to departmental finances, the report noted a surplus on continuing operations of $9.9 million in 2014-15. Total expenses increased by $30.2 million, largely due to the establishment of the Western Sydney Unit, the full year effects of machinery-of-government changes as a result of the abolition of the former Department of Regional Australia, Local Government, Arts and Sport, and the write-down of assets associated with the novation of a property lease to another government entity on 1 July 2015. The total administered expenditure in 2014-15 was $8.9 billion, and of this $5.2 billion was appropriated directly to the department for grants, subsidies and other administered expenses. The report notes that major expense items during the year included the Infrastructure Investment Program, the Local Government Financial Assistant Grants, payments to corporate Commonwealth entities, and the Infrastructure Growth Package. [10]

2.13      The report noted the department had 34 KPI spread over eight programs across four outcomes. Of these, 32 were listed as 'achieved', meaning all targets for 2014-15 were met or exceeded, and two were listed as 'substantially achieved', meaning targets were mostly met and any issues were being managed. The two KPI not fully achieved related to Outcome 2, Program 2.2 Surface Transport.[11]

2.14      The committee considers the 2014-15 annual report to be well-presented and compliant with the reporting requirements.

Civil Aviation Safety Authority – Annual Report 2014-15

2.15      Priorities for the Civil Aviation Safety Authority (CASA) during 2014-15 centered on a resetting of direction for the organisation, in large part due to the December 2014 release of the government response to recommendations arising from the June 2014 Aviation Safety Regulation Review (ASRR) and a statement of expectations for CASA released in April 2015 by the Minister for Infrastructure and Regional Development.[12]

2.16      The report contained a comprehensive assessment of CASA's performance against corporate goals, as well as a progress update on the implementation of the 32 ASSR recommendations relating to the functions and performance of CASA. Of the performance measures set for the three corporate goals, 82 percent were met, with the remaining 18 percent substantially completed, delayed or affected by external factors. Where performance measures were not fully met, CASA provided thorough accounts of the issues at play, and the committee appreciates this level of transparency, as well as the additional statistics on CASA's operations provided in the appendices.[13]

2.17      In terms of corporate governance and management, the report noted CASA underwent significant senior leadership changes during 2014-15, with the appointment of a new Director of Aviation Safety and a change to the composition and size of the board.[14]

2.18      The committee considers the 2014-15 annual report of CASA to be a detailed account of the organisation's performance and compliant with reporting requirements.

Senator the Hon. Bill Heffernan
Chair

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