Chapter 1Introduction

1.1The Senate Community Affairs Legislation Committee (the committee) is responsible for examining the annual reports of departments and agencies under the Health and Aged Care and Social Services portfolios, including Services Australia.

1.2This report (No. 1 of 2024) provides an overview of the committee’s examination of annual reports presented to the Parliament between 1 May and 31 October 2023.

Terms of reference

1.3Under Standing Order 25(20), the annual reports of certain departments and agencies stand referred to committees for examination and assessment. Each committee is required to:

(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 with 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]

1.4Annual reports are key documents under the Australian Government’s performance framework for Commonwealth departments and agencies, established under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In reporting on their operations to the Parliament, Commonwealth entities are also reporting to the Australian public.

Requirements

1.5The PGPA Act establishes a performance reporting framework for all Commonwealth departments, agencies and companies. Section 38 of the PGPA Act requires all Commonwealth entities to measure and assess the performance of the entity in achieving its purposes.[2]

1.6Annual reporting requirements of Commonwealth entities and companies are specified in the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).[3]

1.7Guidelines for the production of annual reports are produced by the Department of Finance in their Resource Management Guides (RMG), which provide detailed information on the reporting obligations for the different types of Commonwealth entities: non-corporate (RMG 135), corporate Commonwealth entities (RMG 136) and Commonwealth companies (RMG137).[4]

1.8In summary, annual reports of Commonwealth entities and companies should:

meet the requirements of the PGPA Act and PGPA Rule;

produce annual reports in accordance with the reporting requirements of other primary legislation; and

comply with the guidelines relevant to the production of annual reports.

1.9The committee is referred annual reports under its portfolio oversight by the Senate and must report on whether all reports are deemed 'apparently satisfactory'.

1.10The committee considers an annual report to be apparently satisfactory when the report:

is presented in accordance with relevant legislation and Australian Government guidelines; and

presents information in a logical and coherent way that clearly distinguishes the entity’s Portfolio Budget Statements (PBS), corporate plan and annual report.

Purpose

1.11Information on the performance of Commonwealth entities and companies provided in annual reports supports the accountability of Australia’s executive government and transparency in the allocation of public resources. The publication of annual reports is a principal opportunity for Commonwealth entities, companies and executive governments to present information to the Parliament and the Australian public.

1.12The committee considers its examination of annual reports important to ensuring that annual reports include the relevant information for public accountability. In conjunction with the PBS, portfolio Additional Estimates Statements and the estimates process, annual reports are a primary mechanism to scrutinise the performance and operations of the executive government.

Allocated portfolios

1.13As previously noted, the committee has been allocated portfolio oversight of the Health and Aged Care and Social Services portfolios.[5]

1.14The lead entities within these portfolios are the Department of Health and Aged Care, the Department of Social Services and Services Australia.[6] Further information on the range of Commonwealth entities and companies within the committee’s portfolio allocation is available on the Department of Finance’s website.[7]

1.15In 2022–23 and following the commencement of the Aged Care and Other Legislation Amendment (Royal Commission Response) Act 2022, the Independent Hospital Pricing Authority was renamed the Independent Health and Aged Care Pricing Authority, with expanded functions in providing aged care costing and pricing advice to the government.[8]

1.16On 1 November 2023, the Office of the Inspector-General of Aged Care was established as an independent statutory authority within the Health and Aged Care portfolio.[9]

Reports referred to the committee

1.17Under Standing Order 25(20)(f), the committee is required to report on the annual reports of department and agencies tabled by 31 October each year by the tenth sitting day of the following year.[10] This year that date is 20 March 2024.

Reports examined

1.18This report considers the annual reports of each portfolio department, in addition to other selected Commonwealth entities and companies within the committee’s portfolio oversight that were presented to the Parliament between 1 May and 31 October 2023.

1.19A list of annual reports of Commonwealth entities and companies referred to the committee for examination, including the relevant tabling dates, can be found at Appendix 1. A list of other documents referred to the committee can be found at Appendix 2.

Timeliness

1.20Standing Order 25(20)(c) requires the committee to report to the Senate on the timeliness of the presentation of annual reports.[11]

1.21Commonwealth entities and companies are required to present annual reports to the responsible minister in accordance with the timeframes set out in relevant legislation. The minister is then required to table the annual report in the Parliament. All annual reports referred to the committee were presented or tabled in the Parliament in a timely manner, by or on 31 October 2023, except for:

the Australian Sports Foundation; and

the National Mental Health Commission.

1.22The committee notes that both agencies listed above provided their annual reports to the minister prior to 31 October 2023.[12]

1.23The committee considers that where Senate Estimates hearings are scheduled to occur prior to 31 October, it is best practice for annual reports to be tabled prior to those hearings.

Senate debate

1.24In accordance with Standing Order 25(20)(d), the committee is required to consider any relevant remarks about the reports made during debate in the Senate.[13] The committee acknowledges that the Senate agreed to take note of a number of annual reports.[14]

Non-reporting bodies

1.25Standing Order 25(20)(d) requires the committee to inquire into, and report on, any bodies which do not present annual reports to the Senate but should present such reports.

1.26The committee makes no recommendations for any bodies not presenting an annual report to do so.

Apparently satisfactory

1.27Standing Order 25(20)(a) requires that the committee report to the Senate on whether annual reports of department and agencies in its portfolios are 'apparently satisfactory'.[15] In making this assessment, the committee considers aspects such as the timeliness of the presentation of annual reports and compliance with the relevant reporting requirements.

Report structure

1.28This report is structured in three chapters as follows:

Chapter 1 – Introduction;

Chapter 2 – Examination of annual reports of Commonwealth departments; and

Chapter 3 – Annual reports of Commonwealth entities and companies.

Footnotes

[1]The Senate, Standing orders and other orders of the Senate, October 2022, SO 25(20).

[2]Public Governance, Performance and Accountability Act 2013, s. 38.

[3]Department of Finance, Annual report content requirements, www.finance.gov.au/government/managing-commonwealth-resources/annual-reports-commonwealth-companies-rmg-137/annual-report-content-requirements (accessed 29 January 2024).

[4]Department of Finance, List of Resource Management Guides (RMGs) – A–Z, www.finance.gov.au/publications/resource-management-guides (accessed 29 January 2024).

[5]Journals of the Senate, No. 1, 26 July 2022, p. 12.

[6]Note: the policy functions of these departments are outlined in the Administrative Arrangements Order, available online at www.pmc.gov.au/resources/administrative-arrangements-order-13-october-2022 (accessed 29 January 2024).

[7]Department of Finance, Flipchart of PGPA Act Commonwealth Entities and Companies, 1 November 2023, pp. 1–2.

[8]Commonwealth of Australia, Health Portfolio Budget Statements 2022–23: Budget Related Paper No. 1.9, p. 3.

[9]Department of Finance, PGPAFlipchart and List, www.finance.gov.au/government/managing-commonwealth-resources/structure-australian-government-public-sector/pgpa-act-flipchart-and-list (accessed 29 January 2024).

[10]The Senate, Standing orders and other orders of the Senate, October 2022, SO 25(20).

[11]The Senate, Standing orders and other orders of the Senate, October 2022, SO 25(20).

[12]More detail on the dates relating to the presentation of annual reports can be found at Appendix 1 of this report.

[13]The Senate, Standing orders and other orders of the Senate, October 2022, SO 25(20).

[14]The Senate took note of the following 2022–23 annual reports: Australian Digital Health Agency, Australian Radiation Protection and Nuclear Safety Agency, Department of Health and Aged Care, Independent Health and Aged Care Pricing Authority, National Health Funding Body, Journals of the Senate, No. 76, 19 October 2023, pp. 2196­–2201.

[15]The Senate, Standing orders and other orders of the Senate, October 2022, SO 25(20).