Overview
1.1
The Senate Rural and Regional Affairs and Transport Legislation
Committee's (the Committee) report on annual reports provides an overview
of the Committee's examination of annual reports for the 2017–18 financial
year, tabled between 1 May 2018 and 31 October 2018. The Committee is
responsible for examining the annual reports of departments and agencies within
the portfolios of:
-
Agriculture and Water Resources; and
-
Infrastructure, Regional Development and Cities.[1]
1.2
This is the first of two reports on annual reports the Committee is
required to produce in 2019.
Terms of reference
1.3
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 is required to:
- Examine each annual report referred to it and report to the Senate whether the
report is apparently satisfactory.
- 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.
- Investigate and report to the Senate on any lateness in the presentation of
annual reports.
- In considering an annual report, take into account any relevant remarks about
the report made in debate in the Senate.
- If the committee so determines, consider annual reports of departments and
budget-related agencies in conjunction with examination of estimates.
- 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.
- Draw to the attention of the Senate any significant matters relating to the
operations and performance of the bodies furnishing the annual reports.
- 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
1.4
The tabling and scrutiny of annual reports by Senate committees under
Standing Order 25(20) is an important element in the process of government accountability
to the Parliament. The information provided in annual reports is placed on the
public record and assists the Parliament in its examination of the performance
of departments and agencies and the administration of government programs.
Reports referred to the Committee
1.5
In accordance with Standing Order 25(20)(f), this report examines the
following annual reports, tabled in the Parliament or presented out of session
and referred to the Committee between 1 May 2018 and 31 October 2018:
Agriculture and Water Resources portfolio
-
Department of Agriculture and Water Resources: Annual Report
2017–18;
-
Australian Fisheries Management Authority: Annual Report 2017–18;
and
-
Murray-Darling Basin Authority: Annual Report 2017–18.
Infrastructure portfolio
-
Department of Infrastructure, Regional Development and Cities:
Annual Report 2017–18;
-
Civil Aviation Safety Authority: Annual Report 2017–18; and
-
Australian Maritime Safety Authority: Annual Report 2017–18.
Annual reporting requirements
1.6
The Public Governance, Performance and Accountability Act 2013
(PGPA Act) established a performance reporting framework for all Commonwealth
entities and companies. The performance framework is based on section 38 of the
PGPA Act, which requires all Commonwealth entities to measure and assess their
performance.
1.7
The performance framework established under the PGPA Act includes the
requirement for Commonwealth entities to prepare a corporate plan and annual
performance statements. The Public Governance, Performance and Accountability
Rule 2014 (PGPA Rule 2014) contain the minimum requirements to be included.
1.8
Section 39 of the PGPA Act requires all Commonwealth entities to prepare
an annual performance statement and include those statements in their annual
reports. Entities use the annual performance statements to report on the
results achieved against the targets, goals and measures established at the
beginning of a reporting year in corporate plans and Portfolio Budget
Statements.
1.9
Below is a summary of the legislative authority and requirements for the
different types of bodies under which annual reports are prepared:
-
Non-corporate Commonwealth entities: PGPA Act, section 46 and the
PGPA Rule 2014, Division 3A(A); for portfolio departments and executive
agencies, and for statutory bodies, relevant enabling legislation.
-
Corporate Commonwealth entities: PGPA Act, section 46 and the
PGPA Rule 2014, Division 3A(B); and for statutory bodies, relevant enabling
legislation.
-
Commonwealth companies: PGPA Act, section 97, which also refers
to requirements under the Corporations Act 2001 and the PGPA Rule, Part
3-3; and for statutory bodies, relevant enabling legislation.
-
Non-statutory bodies: the annual reporting requirements are
contained in the government response to the Senate Standing Committee on
Finance and Public Administration's Report on Non-Statutory Bodies.[2]
Timeliness
1.10
Standing Order 25(20)(c) requires the Committee to report to the Senate
on the late presentation of annual reports. In assessing the timeliness of the
presentation of annual reports, the Committee assesses the presentation against
the requirements of different categories of bodies, the PGPA Rule 2014 and
other legislative requirements.
Commonwealth entities
1.11
Section 46 of the PGPA Act requires the provision of an annual report of
a Commonwealth entity to the responsible minister by the 15th day of the fourth
month after the end of the reporting period for the entity. This section of the
Act does not, however, provide for a timeframe for the minister to present the
report to the Parliament.
Commonwealth companies
1.12
Section 97 of the PGPA Act sets out the requirements for the provision
of annual reports of Commonwealth companies to the responsible minister. Under
subsection 97(2) of the PGPA Act, a company is to provide a report:
- if the company is required by the Corporations
Act 2001 to hold an annual general meeting—the earlier of the following:
- 21 days before the next annual general meeting
after the end of the reporting period for the company;
- 4 months after the end of the reporting period
for the company; and
- in any other case—4 months after the end of the
reporting period for the company; or the end of such further period granted
under subsection 34C(5) of the Acts Interpretation Act 1901.
1.13
Subsection 97(5) of the PGPA Act states:
(5) If the Commonwealth company is
a wholly-owned Commonwealth company, or is not required to hold an annual
general meeting, the responsible Minister must table the documents in each
House of the Parliament as soon as practicable after receiving them. In all
other cases, the responsible Minister must table the documents in each House of
the Parliament as soon as practicable after the annual general meeting of the
company.
PGPA Rule 2014
1.14
The PGPA Rule 2014 states that annual reports for corporate Commonwealth
entities, non-corporate Commonwealth entities and Commonwealth companies must
comply with the Guidelines for the Presentation of Documents to the Parliament,
which is prepared by the Department of the Prime Minister and Cabinet.[3]
1.15
The guidelines advise that for all entities:
As per past practice, it is expected that the responsible
Minister will present the report to each House of Parliament on or before 31
October. If the Senate Supplementary Budget Estimates hearings are scheduled to
occur prior to 31 October, it is best practice for annual reports to be tabled
prior to those hearings. This ensures that annual reports are available for
scrutiny by the relevant Senate standing committee.[4]
1.16
Entities 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 the end of the particular period to which the report
relates. The Committee draws attention to subsections 34C(2) and 34C(3) of the Acts
Interpretation Act 1901, which stipulate that where no date for providing a
report to a minister is specified, the report should 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 the minister receives it.
Timeliness of reports examined
1.17
The presentation of annual reports to the Parliament has two elements
with regard to timeliness: the furnishing of the report to the minister and the
presentation of the report to the Parliament.
1.18
Appendix 1 sets out a complete list of documents referred to the Committee
during the period 1 May 2018 and 31 October 2018.[5]
This appendix includes references to the relevant legislation, the letter of
transmittal dates, the dates on which the annual reports were sent to, and
received by, the relevant minister, and the dates on which the annual reports
were tabled in both the House of Representatives and the Senate.
1.19
The Committee notes 19 entities presented their report to the responsible
minister by 15 October 2018. With respect to the tabling of annual reports, 19 were
tabled by the minister by 31 October.
1.20
The Committee will continue to monitor the timeliness of future annual
reports.
Apparently satisfactory
1.21
Standing Order 25(20)(a) requires the Committee to report to the Senate
on whether the annual reports of departments and agencies in its portfolio are
'apparently satisfactory'. In making this assessment, the Committee considers
aspects including timeliness of presentation and compliance with the relevant
reporting requirements.
1.22
The Committee considers that all annual reports referred during the
reporting period were 'apparently satisfactory'. The following chapter examines
selected annual reports in further detail.
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