Annual reports of departments
Department of Defence
2.1
The Department of Defence annual report 2015–16 was tabled in the Senate
and the House of Representatives on 28 November 2016. An explanation for the
delay was provided from the Secretary of Defence to the Minister of Defence on 31
October 2016 and tabled on 8 November 2016.[1]
2.2
The Defence mission is to defend Australia and its national interests.
Its primary role is to protect and advance Australia’s strategic interests
through the provision of military capabilities and the promotion of security
and stability, and to provide support for the Australian community and civilian
authorities as requested by the Government.[2]
Secretary's review
2.3
In his review, the Secretary of the Department, Mr Dennis Richardson AO,
noted that the two-year implementation of the First Principles Review commenced
on 1 July 2015, and as at 28 October 2016, 40 of the 75 recommendations from
the First Principles Review were being carried out.[3]
2.4
The Secretary drew attention to the Defence Legislation Amendment
(First Principles) Act 2015 which came into effect on 1 July 2016 and
formally recognised the authority of the Chief of the Defence Force (CDF) and
the Vice Chief of the Defence Force. The Secretary acknowledged that Defence continues
to face a range of challenges, including:
-
the changing strategic dynamics in the Indo-Pacific region, the
Middle East and elsewhere;
-
embedding the US force posture changes in northern Australia;
-
addressing the contamination issues around some Defence bases;
and
-
maintaining effective budget management as naval shipbuilding
programs and the Joint Strike Fighter proceed.[4]
Review by the Chief of the Defence
Force
2.5
In his review, the Chief of the Defence Force, Air Chief Marshal Mark
Binskin AC highlighted that during the year the Australian Defence Force (ADF)
had expanded its operations to Syria while maintaining commitments in Iraq, Afghanistan
and the Middle East. The ADF also continued its work on border protection and
embarked on one of its largest humanitarian assistance missions in February
2016 after the Fijian Government requested Australia's assistance following
Tropical Cyclone Winston.[5]
2.6
The CDF discussed Operation Okra and the addition of Australia's Building
Partner Capacity Mission and observed that Australian-trained Iraqi Forces
played a significant role in recapturing the cities of Ramadi and Fallujah with
assistance from Australian personnel. The CDF drew attention to Defence's
appearance at the Royal Commission into Institutional Responses to Child Sexual
Abuse, noting that Defence has maintained its commitment to creating a more
inclusive workforce through its cultural reform program while meeting its
operational requirements.[6]
Internal scrutiny
2.7
During 2015–16, Defence reported 58 instances of significant
non-compliance with finance law proven as fraud committed by an official and
addressed by Defence authorities through criminal, disciplinary or
administrative action.[7]
2.8
There were 246 fraud investigations registered within Defence and 229
investigations were completed during the year (some of those completed were
registered in previous years). Approximately 29 per cent of completed investigations
resulted in criminal, disciplinary or administrative action. Of these, around
15 per cent related to disciplinary action under the Defence Force
Discipline Act 1982. In 2015–16, the determined fraud loss for completed
investigations was $535 766, while monies recovered amounted to $202 879. Detected
fraud over the past five financial years averaged approximately $870 000 per
year within a range of $480 937 to $1.4 million. In its annual report, Defence
outlined strategies for minimising instances of fraud and noted that significant
cases are also reported to the Minister for Defence in accordance with the
Commonwealth Fraud Control Framework.[8]
2.9
During the year, the department's internal Audit Branch issued 17 audit
reports and completed 13 management-directed tasks. Externally, six Australian
National Audit Office performance audits on Defence, and two cross-portfolio
audits involving Defence, were completed.[9]
2.10
Defence reported that the tempo of the Office of the Inspector-General
of the Australian Defence Force (IGADF) remained relatively high in 2015––16.
The IGADF received 67 inquiry submissions—an approximately 8 per cent increase
from last period—and resolved 58 submissions by way of inquiry, assessment or
review. Additionally, the IGADF initiated 41 reviews of deaths in service of ADF
members, and established four formal inquiries into ADF member deaths.[10]
2.11
During 2015–16, a total of 254 matters were reported under the Defence
Public Interest Disclosure Scheme. Defence accepted 194 matters as public
interest disclosures and allocated them for investigation.[11]
2.12
With regards to reporting on sexual misconduct, in 2015–16, 258 clients
were assisted with support and case management; incident management advice and
information; debriefing and other mental health support; and information on
SeMPRO services, civilian assaults, and other behaviour management systems in
Defence.[12]
External scrutiny
2.13
The annual report provided information on judicial and administrative
tribunal decisions that occurred during the year. One judicial decision ordered
that the decision of the CDF made on 10 December 2013 to terminate the
applicant’s service in the Army be set aside. The CDF appealed the decision to
the Full Court of the Federal Court with the appeal heard on 5 and 6 May 2016.
In the second judicial decision a Defence member successfully appealed against
his conviction following a trial before a Defence Force magistrate under the Defence
Force Discipline Act 1982.[13]
2.14
Defence was a respondent in six applications to the Administrative
Appeals Tribunal, which upheld the decision to refuse compensation to
applicants in relation to Defence activities at the Salt Ash Air Weapons Range.[14]
2.15
Defence provided 11 written submissions to various Senate, House of
Representatives and joint committee inquiries. Defence witnesses appeared at 36
hearings and provided evidence on a range of issues. Defence took a total of
536 questions on notice from Senate estimates, House of Representatives/Senate
notice papers, and parliamentary committees, and tabled and/or contributed to
12 government responses to parliamentary committee reports throughout the year.[15]
Australian National Audit Office
reports
2.16
The ANAO's Audit Report No. 33 Defence’s Management of Credit and
Other Transaction Cards, assessed whether Defence is effectively controlling
the use of Commonwealth credit cards for official purposes and concluded that
Defence does not have a complete and effective set of controls. The ANAO
reported that in light of the results of Audit Report No. 33 a cross-entity
audit—Controls Over Credit Card Use—would commence to assess whether
selected Australian Government Entities are effectively controlling the use of
credit cards for official purposes.[16]
2.17
During the year, the following reports relevant to Defence were tabled:
-
Test and Evaluation of Major Defence Equipment Acquisitions;
-
2014–15 Major Projects Report;
-
Defence’s Management of the Mulwala Propellant Facility; and
-
Defence’s Management of Credit and Other Transaction Cards.[17]
2.18
The ANAO's interim report indicated that, following the merger of DMO
and Defence, the responsibility for addressing four unresolved audit findings
were transferred to Defence. Two moderate audit findings were identified during
the interim audit that related to Defence IT systems.[18]
Summary
2.19
The committee commends the department for a comprehensive report. The new
structure has enhanced the report, the report is navigable and the overall
design is clear. The use of examples of Defence activities throughout the
report is worthwhile and the inclusion of diagrams, images and tables is
helpful. The report presented Defence's results against each of its outcomes
and provided analysis of factors that may have contributed to its performance. The
committee is pleased to note Defence's adherence to the list of reporting
requirements.
2.20
The committee finds that Defence's annual report complies adequately with
all of its reporting requirements.
Department of Foreign Affairs and Trade
2.21
The Department of Foreign Affairs and Trade (DFAT) annual report
2015–16 was tabled in the House of Representatives and in the Senate on
10 October 2016.
2.22
As stated in its Corporate Plan 2015–2019, the Department of
Foreign Affairs and Trade's purpose is to make Australia stronger, safer and more
prosperous by promoting and protecting Australia's interests internationally as
well as contributing to global stability and economic growth, specifically in
the Indo–Pacific region.[19]
Secretary's review
2.23
The Secretary reflected that managing Australia’s international
interests has rarely been more important with the international environment now
more complex and volatile than at any time since the end of the cold war.[20]
2.24
During the year, the department led one of Australia's largest
international humanitarian missions in the aftermath of Tropical Cyclone
Winston; made significant contributions to counter the growing threat of
terrorism; secured entry into force of the China-Australia Free Trade Agreement;
and helped to secure substantial advancements in the international development
agenda. The Secretary noted that the department also launched a number of
strategies to enhance workforce diversity and capability, including the Women
in Leadership Strategy, the Diplomatic Academy, and the Workforce Planning
Framework.[21]
Internal scrutiny
2.25
The Office of Development Effectiveness (ODE) is an independent unit of
the department which monitors and assesses the effectiveness of the aid program
and the quality of the department’s performance reporting. In
2015–16, the ODE published seven evaluations of the department’s development
programs and quality assured development performance reporting.[22]
2.26
The department’s Conduct and Ethics Unit (CEU) investigates allegations
of fraud and misconduct against staff. During the year the CEU investigated 39
allegations—nine were substantiated and disciplinary action was taken: four
officers were dismissed—two of those cases were referred to the Commonwealth Director
of Public Prosecutions—another three contractors were terminated, one officer was
demoted and another was formally reprimanded.[23]
External scrutiny
2.27
The annual report provided information on significant developments in
external scrutiny of the department and the department's response. Departmental
officers appeared as witnesses before the Joint Standing Committee on Treaties
in relation to eight proposed treaty actions. Officers also
appeared as witnesses before two Senate, two Joint Standing, two Joint Select,
one Parliamentary Standing and one House of Representatives Standing Committee.[24]
2.28
During the year the department managed a range of legal matters before
courts and tribunals, including:
-
one action seeking judicial review of a passport-related decision
was dismissed by the Federal Court;
-
one action seeking judicial review of a passport-related decision
was discontinued;
-
two debt recovery actions were successfully pursued in court and
a further one is ongoing;
-
one employment action brought in a foreign court by a former
locally engaged employee was successfully defended;
-
one further employment action continues to be defended in a
foreign court.[25]
2.29
At the end of the financial year, there were 16 active applications
before the Administrative Appeals Tribunal for review:
-
15 for review of passports decisions; and
-
one for review of an FOI decision.[26]
2.30
The Commonwealth Ombudsman commenced 12 investigations with respect to
the department’s activities in 2015–16, however no notices were provided under
subsection 12(4) of the Ombudsman Act 1976 and no formal reports were
issued.[27]
2.31
Thirteen new claims were made under the compensation scheme for
detriment caused by defective administration. The department resolved 18 cases,
including applications made in previous financial years. Of these, 14
applications for compensation were accepted, three were rejected and one was
redirected to the appropriate agency. Four cases remained in progress at the
end of the financial year.[28]
Australian National Audit Office
reports
2.32
The ANAO's final report indicated that there were no significant or
moderate audit findings arising from the 2014–15 or 2015–16 financial
statements audits.[29]
Summary
2.33
The committee commends the department for a well presented and comprehensive
report and notes that it was tabled in a timely manner. The inclusion of case
studies to demonstrate the department's work towards its functions is
worthwhile and the use of tables and charts enhances the report. The text is
easy to read and alternating colour is used to advantage. The committee is
pleased to note DFAT's adherence to the list of reporting requirements.
2.34
Helpful 'overview', 'results and analysis' and 'outlook' sections were
provided for each division. Factors that contributed to performance in each
area were plainly discussed. Although the geographic, thematic and functional
breakdown of KPI results per region provided some information on programs, more
information on why particular programs were rated as 'partially met' would be
welcome.
2.35
The committee finds that the Department of Foreign Affairs and Trade's
annual report adequately complies with all of its reporting requirements.
Department of Veterans' Affairs
2.36
The Department of Veterans' Affairs (DVA) annual report 2015–16 was received
out of sitting on 31 October 2016 and tabled in the House of Representatives
and in the Senate on 7 November 2016. The report includes separate reports of
both the Repatriation Commission and the Military Rehabilitation and
Compensation Commission. These describe how each commission interrelates with
DVA and its main activities for the period but do not include performance
reporting, which is covered in DVA's report.
2.37
The Department of Veterans' Affairs purpose is to support those who
serve, or have served, in the defence of the nation and to commemorate their
service and sacrifice.[30]
Operational matters
2.38
At 30 June 2016, DVA supported more than 303 000 clients, some through
Gold or White Card entitlements and some through other benefits and services.
DVA reported that beneficiary numbers under the Veterans'
Entitlements Act 1986 have declined over the past four years and are
expected to continue, however the numbers of Safety, Rehabilitation and
Compensation Act 1988 and Military Rehabilitation and Compensation Act
2004 beneficiaries have been rising.[31]
2.39
DVA noted that while the overall client base may be decreasing, the individual
financial, health and care needs of clients are becoming increasingly complex
and poses challenges for DVA in meeting its targets.[32]
2.40
DVA found that new claims for income support pensions have increased in
recent years due to the number of veterans with warlike service returning from
overseas deployments. This, combined with new technology enabling clients to
lodge claims via an online portal, led to an increase in the number of claims
from veterans seeking clarification of their qualifying service status.[33]
Secretary's review
2.41
In his review, the Secretary of the Department of Veterans' Affairs, Mr Simon
Lewis PSM, observed that the department continued to make improvements to its services,
particularly in the priority areas of mental health, effective transitions for
discharging ADF members, and claims processing. The Secretary noted that mental
health remains a priority for DVA which spends around $187 million a year on
services and treatments, and highlighted that the May 2016
Budget extended eligibility for certain mental health conditions to anyone who
has ever served in the ADF. The Secretary noted that funding for mental
health treatment is demand-driven and not capped.[34]
2.42
DVA has been working with the Department of Defence to connect with ADF
members during their career to increase awareness of support for transition.
From January 2016 DVA has been able to connect with all transitioning members. DVA
also trialled the Veterans’ Employment Assistance Initiative, which aims to
improve the rehabilitation process and provide employment opportunities to
recovering veterans who are able to return to work. Evaluation of
the trial will lead to recommendations for a national approach to improve the
rehabilitation process.[35]
2.43
During the year, a 12-month trial of alternative dispute resolution for
appeals to the Veterans’ Review Board (VRB) was conducted in the Australian
Capital Territory and New South Wales. An independent review found that 85 per
cent of cases that underwent alternative dispute resolution resolved quickly
and without the need for a hearing. Alternative dispute resolution will be
rolled out across Australia in 2016–17, along with a new VRB claims management
system.[36]
2.44
Looking ahead, the Secretary indicated that budget funding has been
provided for suicide awareness and prevention programs for veterans, including
support services for children of veterans. Nearly $25 million will go towards
developing how DVA can overhaul its current business model and service, and a
further $24 million is directed towards improving the department's ICT systems.[37]
Internal scrutiny
2.45
In 2015–16, the department received 338 new cases of alleged fraud or
non-compliance and 95 cases were rolled over from the previous financial year.
At 30 June 2016, 336 cases had been closed and 97 cases remained open with
investigations into fraud and non-compliance underway. In total, the department
identified around $0.52 million in confirmed fraud and non-compliance
investigation cases in 2015–16. Of the 336 finalised cases, none identified
fraud, 25 identified non-compliance and 311 detected no offence.[38]
2.46
During the year, DVA's Legal Services, Assurance and Deregulation Branch
received 59 notifications of potential privacy breaches, 42 of which related to
mail or email. Investigations concluded that breaches had occurred in 36 cases
and no breaches had occurred in 16 cases. The remaining cases were resolved in
other ways or were still under investigation at the end of 2015–16. DVA
notified the acting Australian Information Commissioner of two significant
breaches that occurred in 2015–16.[39]
External scrutiny
2.47
In 2015–16, DVA was the subject of three audits by the Auditor-General
and made a submission to one Joint Committee of Public Accounts and Audit
inquiry. The Administrative Appeals Tribunal considered 180 applications
relating to compensation matters under the VEA. It considered 79 matters
relating to the SRCA and 48 relating to the MRCA. Of these, 58 VEA, 18 MRCA and
eight SRCA decisions were affirmed by the tribunal.[40]
2.48
In accordance with the Legal Services Directions 2005, the Repatriation
Commission or the MRCC may lodge an appeal to the Federal Court in order to
clarify a legal issue or protect the integrity of legislation. During the year,
the Federal Court delivered four decisions, three of which were favourable to
the veteran or widow. The Federal Circuit Court also delivered two decisions
where the Repatriation Commission was successful in both cases. The Full
Federal Court delivered three decisions, one of which was favourable to the
veteran. The High Court delivered one decision in which it examined the legal
concept of injury and reinforced earlier case law and the MRCC was successful
in that case.[41]
2.49
The acting Australian Information Commissioner handed down one decision
in relation to the department in 2015–16 under the Freedom of Information Act
1982 (FOI Act). On 22 April 2016, in David Watts and Department of Veterans’
Affairs [2016] AICmr 26, the acting Australian Information Commissioner set
aside a decision by the department under the FOI Act, regarding emails between
departmental officers and Monash University staff and researchers, and chapters
of draft Gulf War health study reports. The Commissioner substituted the department’s
decision with his decision to grant greater access to the documents than the
level of access provided by the department.[42]
Australian National Audit Office
reports
2.50
The ANAO's Report No. 32 Administration of Rehabilitation Services
under the Military Rehabilitation and Compensation Act 2004 was tabled on 5
May 2016. It assessed the effectiveness of DVA's and Defence's joint
administration of rehabilitation services under the Military Rehabilitation
and Compensation Act 2004 however no recommendations were identified in the
report. In 2015–16, the ANAO published the following reports relating to DVA:
-
Confidentiality in government contracts: Senate order for
departmental and entity contracts (calendar year 2014 compliance);
-
Implementation of audit recommendations; and
-
Administration of rehabilitation services under the Military
Rehabilitation and Compensation Act 2004. [43]
2.51
The Australian National Audit Office final report for DVA indicated that
were no significant or moderate audit findings arising from the 2014–15 or 2015–16
financial statement audits.[44]
Summary
2.52
The
committee commends DVA for a thorough report. The use of graphs and tables
enhances the report's content and the committee is pleased to note DVA's
adherence to the list of reporting requirements. The performance overviews for
each outcome provided helpful information on factors that contributed to the
department's performance and identified the department's work towards
improvement. The report could be improved to make content more user-friendly by
better distinguishing subheadings from main headings.
2.53
The committee finds the Department of Veterans' Affairs annual report
complies adequately with all of its reporting requirements.
Navigation: Previous Page | Contents | Next Page