Chapter 1Introduction
1.1Under Senate Standing Order 25(20), the annual reports of departments and agencies under the Senate Finance and Public Administration Legislation Committee's (the committee) allocated portfolios are referred to the committee for examination and report. The committee is responsible for the following portfolios:
Parliamentary Departments;
Finance; and
Prime Minister and Cabinet.
1.2Standing 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, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year. This report (No. 1 of 2024) provides an overview of the committee's examination of annual reports tabled in the Senate between 1May2023 and 13 February 2024.
Terms of reference
1.3Under Standing Order 25(20) the 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 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.
(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.
Role of annual reports
1.4The 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.
Requirements for annual reports
1.5The Public Governance, Performance and Accountability Act 2013 (PGPA Act) establishes a performance reporting framework for all Commonwealth entities and companies. Section 38 of the PGPA Act requires all Commonwealth entities to measure and assess their performance.
1.6The Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) supports the implementation of the PGPA Act and outlines the requirements of annual reports for Commonwealth entities.
1.7Section 39 of the PGPA Act requires all Commonwealth entities to prepare an annual performance statement to be included in their annual report. Annual performance statements compare an entity's non-financial performance results against the targets, goals and measures outlined by the relevant corporate plan and the Portfolio Budget Statements (PBS) at the beginning of the reporting period.
1.8Annual reporting requirements differ between Commonwealth entities. Below is a summary of the legislative authority and requirements under which annual reports are prepared for different types of bodies:
Non-corporate Commonwealth entities: section 46 of the PGPA Act and Division 3A(A) of the PGPA Rule; and for parliamentary departments, the Parliamentary Service Act 1999, section 65.
Corporate Commonwealth entities: section 46 of the PGPA Act and Subdivision B of Division 3A of Part 2–3 of the PGPA Rule.
Commonwealth companies: section 97 of the PGPA Act, which refers to additional requirements under the Corporations Act 2001 and Part 3–3 of the PGPA Rule.
Statutory office holders and statutory bodies: statutory office holders are engaged or employed under an Act, which may prescribe annual reporting requirements pursuant to the office. There may be reporting requirements in the relevant enabling legislation for statutory bodies, which may also be Commonwealth entities.
Non-statutory bodies: annual reporting requirements are contained in the government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies.
1.9In addition to legislative requirements, the Department of Finance (Finance) provides guidance material for Commonwealth entities which sets out further detail on the content requirements for annual reports under the Commonwealth Performance Framework in accordance with the PGPA Act and PGPA Rule. The material available from the Finance website includes several Resource Management Guides which may apply to the annual reports being examined.
Reports examined
1.10In accordance with Senate Standing Order 25(20)(f), this report examines annual reports submitted to the Minister in the period 1May2023 and 13 February 2024. In this period, twenty-eight reports of Commonwealth entities were tabled in the Parliament and referred to the committee. The presentation and tabling dates of the annual reports examined in this report are listed in Appendix 1. The agencies whose annual reports were selected for detailed examination are:
Australian Public Service Commission—Annual Report 2022–23
ASC Pty Ltd—Annual Report 2022–23
Department of Finance—Annual Report 2022–23
1.11The committee is not obliged to examine reports on the operation of acts, policy papers, budget documents or corporate plans. Accordingly, six documents were also referred to the committee during the reporting period but were not examined for the purposes of this report. These are also included in Appendix1.
Assessment of annual reports
1.12Standing Order 25(20)(a) requires the committee to report to the Senate on whether the annual reports of departments and agencies in its portfolio presented to it during the relevant period are 'apparently satisfactory'.
1.13In assessing these reports, the committee has taken into consideration the role and purpose of annual reports within the Commonwealth Performance Framework, the legislative requirements for the reports, guidance for best practice in the Finance Resource Management Guides and other relevant materials.
Timeliness of annual reports
1.14Standing Order 25(20)(c) requires the committee to investigate and report to the Senate on any lateness in the presentation of annual reports.
1.15Section 46 of the PGPA Act requires both corporate and non-corporate Commonwealth entities to prepare annual reports and for such reports to be provided to the responsible minister by the 15th day of the fourth month after the end of the reporting period for the entity. Subsection 34C(3) of the Acts Interpretation Act 1901 further specifies that the responsible minister is obliged to present it to Parliament within 15 sitting days of receiving the report.
1.16However, some entities may have a specific date for presentation stipulated by their enabling legislation. In the absence of specific provisions, subsection 34C(2) of the Acts Interpretation Act 1901 may apply, which requires bodies to present annual reports to ministers within six months after the end of the period reported upon.
1.17Standing Order 25(20)(c) requires the committee to investigate and report to the Senate on any lateness in the presentation of annual reports. The committee considers the timely presentation of annual reports to be an important element of accountability. Appendix 1 includes information for the date each examined annual report was:
submitted to its responsible minister;
first sighted by the responsible minister; and
tabled (or presented) in the House of Representatives; and
tabled (or presented) in the Senate.
1.18The majority of annual reports for 2022–23 were presented in a timely manner. However, the Wreck Bay Aboriginal Community Council—Annual Report 2022–23, at the time of the tabling of this report, has not yet been presented to the Senate. The above agency has not provided a reason for the delay in presentation of their annual report.
1.19The committee encourages Commonwealth entities and companies to prepare annual reports in accordance with the timeframe outlined by the relevant legislation.
1.20In addition, the Finance Resource Management Guides specify that both corporate Commonwealth entities and non-corporate Commonwealth entities are expected to table their annual reports prior to Senate estimates hearings held in October. The committee encourages Commonwealth entities to table their annual reports prior to those hearings to assist the committee's scrutiny of estimates.
Senate debate
1.21Standing Order 25(20)(d) requires the committee to consider any relevant remarks about the reports made in debate in the Senate. The committee notes that none of the annual reports examined in this report have been the subject of comments or debate in the Senate at the time of preparing this report.
Bodies not presenting annual reports to the Senate
1.22According to Standing Order 25(20)(h) the committee is required to report to the Senate on whether there are any bodies which should present annual reports to the Senate but do not. The committee is satisfied that currently, there are no such bodies.
Committee view
1.23The committee considers all reports examined to be 'apparently satisfactory' and encourages Commonwealth entities to continue to aim for standards of best practice in preparing annual reports.