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Members of the Committee

Introduction

Terms of reference
Annual reports referred
Method of assessment
General comments on reports
Comments made in the Senate
Departmental reports
Statutory agencies reports
Statutory authorities reports
Annual reports of other bodies
Annual reports on the operations of acts
Bodies not presenting annual reports to the Senate

Appendix 1 – Allocation of annual reports

Education, Science and Training portfolio
Employment and Workplace Relations portfolio

Appendix 2 – List of annual reports referred

Appendix 3 – Guidelines

Departmental reports
Commonwealth authorities and companies
Non-statutory bodies

Members of the Committee

Substitute Members:

Secretariat:
Mr John Carter, Secretary
Ms Ruth Clark, Research Officer

SG.52
Parliament House
CANBERRA ACT  2600

Phone: (02) 6277 3520
Fax: (02) 6277 5706
E-mail: eet.sen@aph.gov.au
Website: www.aph.gov.au/senate_employment

Introduction

Terms of reference

1.1       On 24 August 1994, the Senate adopted the following procedural orders relating to the functions of legislation committees and, in particular, their role in relation to annual reports[1]:

25(21) Annual report 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 shall:

1. examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;
2. 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;
3. investigate and report to the Senate on any lateness in the presentation of annual reports;
4. in considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;
5. if the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;
6. 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;
7. draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and
8. 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.

1.2       In accordance with resolutions of the Senate relating to the allocation of departments and agencies to committees by the Senate in the 41^st Parliament on 9 February 2006, the Employment, Workplace Relations and Education Legislation Committee has responsibility for the oversight of the following portfolios:

• education, science and training; and

• employment and workplace relations.[2]

Annual reports referred

1.3       In accordance with Senate Standing Order 25 (21)(f) this report examines those annual reports referred to the committee between 1 May 2005 and 31 October 2005. Tabling details of the annual reports falling within the scope of the committee is set out in Appendix 1.

1.4       During this period two departmental reports, three annual reports of statutory agencies, 13 annual reports of statutory authorities, three reports on the operation of legislation, one report on Commonwealth companies, two departmental reports and two corrigendum to annual reports were received. There were no reports from non-statutory bodies referred in this reporting period. These reports are listed in Appendix 2.

Method of assessment

1.5       The Senate Order referred to previously requires that the committee examine the reports referred to it to determine whether they are timely and ‘apparently satisfactory’. In forming its assessment the committee has considered whether the reports comply with the relevant guidelines for the preparation of annual reports:

• for portfolio departments, sections 63 (2) and 70 (2) of the Public Service Act 1999, and the Requirements for Departmental Annual Report, for Departments, Executive Agencies and FMA Act Bodies Department of Prime Minister and Cabinet, revised June 2005.

• for Commonwealth authorities and companies, the Commonwealth Authorities and Companies Act 1997 including sections 9, 36 and 48.

• for non-statutory bodies, the guidelines contained in the Government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies, Senate Hansard, 8 December 1987,
  pp. 2643-45

1.6       With the exception of the Requirements for Departmental Annual Reports, these requirements are printed under Appendix 3.

General comments on reports

1.7       The committee has agreed, under the terms of the procedural order requiring it to report to the Senate on Annual Reports, that all reports described here are apparently satisfactory. In making this assessment, the committee considers aspects such as the timeliness of presentation and compliance with relevant reporting requirements.

1.8       The committee acknowledges the tabling of the Australian National Audit Office, Reporting of Expenditure on Consultants, which audited 2003-04 annual reports relation to agencies entering into arrangements with service providers who may be either contractors or consultants. Those agencies which were covered by the audit are listed on pp. 77-81, with DEST, ARC, DEWR, EOWA and Seacare being audited from portfolios agencies under this committee's responsibility.

1.9       All reports have been lodged with the appropriate minister on time, and have met the reporting requirements. The reports are generally of a high standard in layout and in the extent of information presented. All reports meet the requirement of being apparently satisfactory.

Comments made in the Senate

1.10      The committee is obliged, under Senate Standing Order 25 (21)(d) to consider any remarks made about these reports in the Senate. Where comments have been made they are referred to in the section below on comments on individual reports.

Departmental reports

• Department of Education, Science and Training Annual Report 2004–05
  Department of Education, Science and Training – Report for 2004-05 - Correction

1.11      The committee notes that the corrigendum to DEST's annual report was tabled on 7 February 2006, replacing page 73 of the report. The committee considered it appropriate to examine it as part of this report. This corrigendum corrects the legend for Figure 4.5, transposing bachelor degrees and vocation education and training lines.

1.12      Also to be noted in appendix 4 is the full list of consultancy contracts let which exceed $10,000. In appendix 9 DEST acknowledges its errors and omissions in the DEST 2003-04 Annual Report in relation to consultancy contracts.

1.13      In addition to the Department’s annual report, the Minister also tabled in the Senate a report on Higher Education, Report for the 2004-05 and the National Report to Parliament on Indigenous Education and Training 2003. The Higher Education Report was referred to on 5 October 2005 by Senators Natasha Stott Despoja and Ursula Stephens. The later report was referred to in the Senate on 22 June 2005 by Senator Trish Crossin and Senator Kim Carr.

• Department of Employment and Workplace Relations Annual Report 2004–05

1.14      During the financial year 2004-05, DEWR notes that its principal focus was incorporating the 19 additional administered programmed and integration of 640 staff from Aboriginal and Torres Strait Islander Services, the Department of Family and Community Services and the National Occupational Health and Safety Commission. There was a total increase in funding from $1.9 billion in 2003-04 to $17.6 billion in 2004-05. [3]The committee also notes the full list of consultancies contracts let over $10,000 in appendix 8.

Statutory agencies reports

Education, Science and Training portfolio

• Australian Research Council Annual Report 2004–05

1.15      Senator Natasha Stott Despoja asked a question in the Senate on 30 November 2005 regarding a more transparent process for the allocation of research grants, and then reporting in ARC's annual report.

1.16      ARC lists its consultancies of the value of $10,000 or more in Section 5 – Management and accountability pp. 129-130.

Employment and Workplace Relations portfolio

• Australian Industrial Relations Commission and Australian Industrial Registry – Reports for 2004–05

1.17      A list of consultancies let as per reporting requirements are listed on pp. 137-138 of the report.

• Seafarer Safety, Rehabilitation and Compensation Authority (Seacare Authority) Annual Report 2004–05

1.18      On page 15 this organisation reports one consultancy let in the period 2004-05 of $10,550.

Statutory authorities reports

Education, Science and Training portfolio

• Australian Institute of Marine Science Annual Report 2004–05

• Australian National University – Annual Report 2004

• Australian National Training Authority 2004–05 Annual Report on Operations and
  Australian National Training Authority annual National Report of the Australian vocational education and training system 2004

1.19      The committee notes that this is the final report from the Australian National Training Authority which ceased to be operational on 30 June 2005.[4]

1.20      A corrigendum for the 2004 Annual National report of the Australian Vocational Education and Training System was tabled on 7 February 2006, correcting figures on pages 6, 23 and 119. The committee thought it appropriate to examine this corrigendum in this report although it was tabled outside the dates of this report. Also noted in the list of consultants in appendix 5, p. 103.

• Australian Nuclear Science and Technology Organisation Annual Report 2004–05

• Commonwealth Scientific and Industrial Research Organisation 2004-05

1.21      CSIRO's report was referred to by Senator Natasha Stott Despoja on 7 February 2006, and by Senator Ursula Stephens on 9 November 2005 and 7 December 2005. The concern raised was the deficit reported on page 147 of the annual report of $9.2 million, with a projected increase of $14.5 for 2005-06. This matter was also raised in the Additional estimates hearing on 15 February 2005.

1.22      The committee also notes that CSIRO has included a list of its consultancies let with the values of over $10,000 in appendix 4.

Employment and Workplace Relations portfolio

• Coal Mining Industry (Long Service Leave Funding) Corporation 2005 Annual Report

• Comcare and QWL Corporation Pty Limited Annual Report 2004 –2005

1.23      The committee notes that Comcare reported on p. 89 of its report that no consultancies over $10,000 or more were let, and that total expenditure on consultancies was $491,319.47.

• Defence Force Remuneration Tribunal Twentieth report 2004–2005 Section 58H of the Defence Act 1903[5]

• Office of the Employment Advocate Annual Report 2004–05

1.24      This report was referred to in the Senate on 2 March 2006 by Senator Dana Wortley. The committee notes that this report refers to consultancies let in appendix 5.

• National Occupational Health and Safety Commission Annual Report –
  2004-2005

1.25      As reported on p. 27 of its report, NOHSC was waiting for the National Occupational Health and Safety commission Act 1985 to be repealed, which happened on 28 November 2005. This organisation is now subsumed in DEWR.[6]

1.26      A list of consultancies let by NOHSC valued at more than $10,000 is reported in Appendix 4 – Public accountability, p. 67. It is also noted that on p. 72 NOHSC provided corrections to the 2003-04 Annual Report in relations to consultancies services and those let.

• Safety, Rehabilitation and Compensation Commission
  Annual Report 2004–05

• Seafarer Safety, Rehabilitation and Compensation Authority (Seacare Authority) Annual Report 2004–05

• Stevedoring Industry Finance Committee Annual Report 2004-2005

1.27      The May 2005 Budget announced that the management of common law injury claims against the Government involving asbestos related diseases would been centralised within the Department of Employment and Workplace Relations. The responsibility for the legislation was transferred to DEWR on 21 July 2005.[7]

Annual reports of other bodies

Education, Science and Training portfolio

• The Carrick Institute for Learning and Teaching in Higher Education Limited – Annual report to 30 June 2005

1.28      The committee notes that this is the first report received from this institute established within Macquarie University in August 2004. Its establishment followed a recommendation in Our Universities: Backing Australia's Future (2003) that a new national institute should be formed to promote learning and teaching in Australian higher education.[8]

Annual reports on the operations of acts

Education, Science and Training portfolio

• States Grants (Primary and Secondary Education Assistance) Act 2000 – report on financial assistance granted to each state in respect of 2003

Employment and Workplace Relations portfolio

• Air Passenger Ticket Levy (Collection) Act 2001 – Report for 1 April 2004 to 31 March 2005

• Remuneration Tribunal Annual Report 2004–2005

1.29      The committee has no comment to make on these legislation operation reports. Matters relating to the Air Passenger Ticket Levy Act are taken up from time to time in the Senate with the Minister representing the Minister for Employment and Workplace Relations.

Bodies not presenting annual reports to the Senate

1.30      The committee is required to report to the Senate each year on whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

1.31      The committee is satisfied that there are no bodies, within these portfolios, which do not meet their reporting requirements to the Senate in this reporting period.

Senator Judith Troeth
Chair

Appendix 1 – Allocation of annual reports

of Commonwealth bodies to legislation committees

Education, Science and Training portfolio

• Anglo-Australian Telescope Board – Anglo Australian Observatory

• Australian Institute of Aboriginal and Torres Strait Islander Studies

• Australian Institute of Marine Science

• Australian National Training Authority[9]
  Australian National Training Authority National Report (Australian Vocational Education and Training System)

• Australian National University

• Australian Nuclear Science and Technology Organisation

• Australian Research Council

• Carrick Institute for Learning and Teaching in Higher Education Limited

• Commonwealth Scientific and Industrial Research Organisation

• Department of Education, Science and Training

• Higher Education Report for a triennium

• States Grants (Primary and Secondary Education Assistance) Act 1996 - Financial assistance granted to states and territories

Employment and Workplace Relations portfolio

• Air Passenger Ticket Levy (Collection) Act 2001

• Australian Industrial Relations Commission and Australian Industrial Registry

• Coal Mining Industry (Long Service Leave Funding) Corporation

• Comcare Australia

• Defence Force Remuneration Tribunal[10]

• Department of Employment and Workplace Relations

• Department of Employment and Workplace Relations - Agreement making under the Workplace Relations Act 1996

• Employment Advocate

• Equal Opportunity for Women in the Workplace Agency

• Indigenous Business Australia

• National Occupational Health and Safety Commission [to be abolished in 2005-06]

• Remuneration Tribunal

• Safety, Rehabilitation and Compensation Commission

• Seafarers Safety, Rehabilitation and Compensation Authority (Seacare)

• Stevedoring Industry Finance Committee

Appendix 2 – List of annual reports referred

List of Annual reports referred by the Senate to the Committee during the period 1 May 2005 to 31 October 2005.

Education, Science and Training portfolio

*   Reports presented to the President out of session.

Employment and Workplace Relations portfolio

*   Reports presented to the President out of session.

** Forwarded to the Foreign Affairs, Defence and Trade Legislation Committee also

Appendix 3 – Guidelines

Departmental reports

The requirements for departmental annual reports are included in the Requirements for Departmental Annual Reports[11], Department of the Prime Minister and Cabinet, revised June 2005, approved to by the Joint Committee of Public Accounts and Audit, and also in sections 63 and 70 of the Public Service Act 1999. The sections of this Act which specify the requirements in regard to timeliness of annual reports are reproduced below.

S 63 (1) After the end of each financial year, the Secretary of a Department must give a report to the Agency Minister, for presentation to the Parliament, on the Department's activities during the year.

(2) The report must be prepared in accordance with guidelines approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit.

S 70 (1) After the end of each financial year, the Head of an Executive Agency must give a report to the Agency Minister, for presentation to the Parliament, on the Agency's activities during the year.

(2) The report must be prepared in accordance with guidelines approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit.

The Requirements for Departmental Annual Reports specify that annual reports of departments, executive and prescribed agencies must be tabled by 31 October. In the event a department cannot meet this deadline the secretary is required to advise the responsible minister of the reason, the expected tabling date and what action is proposed so that the deadline will be met for the following year’s annual report. The responsible minister is to table this explanation in the Parliament on the next available sitting day.

Commonwealth authorities and companies

The Commonwealth Authorities and Companies Act 1997 contains detailed rules about reporting and accountability for Commonwealth authorities and Commonwealth companies. Commonwealth companies also must meet other reporting requirements as set out in Corporations Law.

Relevant sections of the Commonwealth Authorities and Companies Act 1997 for annual reports are set out below.

Part 3 – Reporting and other obligations for Commonwealth authorities

Schedule1, Part 3, Division 1, Section 7

Section 7 Meaning of Commonwealth Authority

1. In this Act, Commonwealth authority means either of the following kinds of body that holds money on its own account:
2. a body corporate that is incorporated for a public purpose by an Act;
3. a body corporate that is incorporated for a public purpose by:
4. regulations under an Act; or
5. an Ordinance of an external Territory (other than Norfolk Island) or regulations under such an Ordinance;

and is prescribed for the purposes of this paragraph by regulations under this Act.

Schedule1, Part 3, Division 2, Section 9

Section 9 Directors must prepare annual report

1. The directors of a Commonwealth authority must:
2. prepare an annual report in accordance with Schedule 1 for each financial year; and
3. give it to the responsible Minister by the deadline for the financial year

The deadline is the 15^th day of the 4^th month after the end of the financial year.

1. The responsible Minister must table the report in each House of the Parliament as soon as practicable.

Note: The Acts Interpretation Act 1901 limits the term ‘as soon as practicable’ to 15 sitting days from receipt (s.34C(3)).

Part 4 – Reporting and other obligations for Commonwealth companies

Schedule1, Part 4, Division 1, Section 34

Section 34 Meaning of Commonwealth company and wholly owned Commonwealth company

2. In this Act, Commonwealth company means a Corporations Law company in which the Commonwealth has a controlling interest.

However, it does not include a company in which the Commonwealth has a controlling interest through one or more interposed Commonwealth authorities or Commonwealth companies.

3. In this Act, wholly-owned Commonwealth company means any Commonwealth company, other than a company any of the shares in which are beneficially owned by a person other than the Commonwealth.

Schedule1, Part 4, Division 2, Section 36

Section 36 Annual Report

(1) At least 14 days before each annual general meeting, a Commonwealth company must give the responsible Minister:  (a) a copy of the company's annual report that includes the company's annual general meeting documents (or, if there is no such annual report, a copy of the company's annual general meeting documents); and   (b) any additional report under subsection

For this purpose, annual general meeting documents means the documents relating to a financial year that the company is required by the Corporations Law to lay before its annual general meeting.

4. If the Commonwealth company is a wholly-owned Commonwealth company, 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 Minister must table the documents in each House of the Parliament as soon as practicable after the annual general meeting of the company.

Schedule1, Part 1, Section 1

Part 1 - Contents of annual report

Section 1 Summary of contents

The annual report must include:

5. a report of operations, prepared by the directors in accordance with the Finance Minister’s Orders; and
6. financial statements, prepared by the directors under clause 2 of this Schedule; and
7. the Auditor-General’s report on those financial statements, prepared under Part 2 of this Schedule and addressed to the responsible Minister.

Note: The report may include other matters, for example, matters that are required by another Act or by Ministerial guidelines.

Non-statutory bodies

1.         The date of establishment of each new non-statutory body (NSB) and, in relation to an existing NSB, information regarding the date of its establishment in as much detail as is available.

1. A statement of each NSB’s objectives and functions.
2. An account of each NSB’s significant activities during the year.
3. An indication that the creation or continued existence of each NSB, its functions and its organisation have received Ministerial approval.
4. The date on which each NSB will cease to exist or before which it will be reviewed (whichever is the earlier).

6.         In the case of any NSB whose continued existence, functions and organisation have been reviewed and whose continued existence has been approved by the Minister, a summary of the outcome of the review.

7.         A list of any positions provided for ex-officio government members on each NSB and of any positions provided for representatives nominated by particular non–government organisations.

8.         The maximum term of appointment to each other position on an NSB.

1. Except in cases where there may be little or no continuity of membership from one meeting to the next, the names of individual members of each NSB, and their terms of appointment.
2. The manner in which the level of remuneration (if any) paid to members of each NSB is determined.
3. The manner in which each NSB is funded.
4. A summary of any other financial arrangements such as the kinds of expenditure that can be made from the funds provided, and the nature of secretariat services provided and the way in which these are funded.
5. An indication, in respect of each NSB, as to whether one of its functions is to distribute funds to other organisations or individuals.
6. In the case of each NSB with its own accounting system, an audited financial statement.
7. In the case of each NSB that operates through its parent body’s accounts, an account of receipts and expenditures, to be provided on a program basis:

• with the NSB’s work reflected in the parent body’s published program structure;

• and with performance related to objectives and measured in terms of stated criteria, in accordance with standard program budgeting techniques; and

• the amounts of any grants made by each NSB.

(Derived from the government response to the report on non-statutory bodies of the Senate Standing Committee on Finance and Government Operations, Senate Hansard, Vol. S.124, 8 December 1987, pp. 2643–5.)

For further information, contact:

Committee Secretary
Senate Employment, Workplace Relations and Education Committee
Department of the Senate
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

Phone:	+61 2 6277 3521
Fax:	+61 2 6277 5706
Email:	eet.sen@aph.gov.au

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