Chapter 1 Introduction

1.1

The Senate Community Affairs Legislation Committee (committee) is responsible for examining the annual reports of departments and agencies under the Health portfolio and Social Services portfolio, including Services Australia.1

1.2

This report on annual reports (No. 1 of 2022) provides an overview of the committee’s examination of annual reports presented to the Parliament between 1 May 2021 and 31 October 2021.

Terms of references

1.3

Under Senate 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 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.2

Annual reporting requirements and purpose

1.4

Annual 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).3 In reporting on their operations to the Parliament, Commonwealth entities are also reporting to the Australian public.

Requirements

1.5

The 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 their performance.

1.6

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

1.7

Guidelines for the production of annual reports are produced by the Department of Finance. The Resources Management Guides provide detailed information on the reporting obligations for the different types of Commonwealth entities: corporate and non-corporate Commonwealth entities; and Commonwealth companies.4

1.8

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

meet the requirements of the PGPA Act and PGPA Rule;

be in accordance with the reporting requirements of other primary legislation; and

be compliant with guidelines relevant to the production of annual reports.

1.9

The committee is referred annual reports under their portfolio oversight by the Senate and must report on whether all reports are ‘apparently satisfactory’.

1.10

The 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 way that clearly distinguishes the entity’s Portfolio Budget Statements (PBS), corporate plan, and annual report.

Purpose

1.11

Information on the performance of Commonwealth entities and companies provided in annual reports supports the accountability of Australia’s executive government and the 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 Parliament and the general public.

1.12

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

Allocated portfolios

1.13

As noted, the committee has been allocated portfolio oversight of the Health portfolio and Social Services portfolio.

1.14

The lead entities within those portfolios are the Department of Health, Department of Social Services and Services Australia.5 Information on the range of Commonwealth entities and companies within the committee’s portfolio allocation is available on the Department of Finance website.6

1.15

On 15 April 2021, responsibility for the Digital Transformation Agency (DTA) was transferred from DSS to the Department of the Prime Minister and Cabinet.7 Examination of the DTA's annual report was therefore referred to the Senate Finance and Public Administration Legislation Committee.

Reports referred to the committee

1.16

Under Standing Order 25(20)(f), the committee is required to report on the annual reports of departments and agencies tabled by 31 October each year by the tenth sitting day of the following year.

Reports examined

1.17

This report considers the annual reports of each portfolio department, along with other selected Commonwealth entities and companies, within the committee’s portfolio oversight that were presented to Parliament between 1 May 2021 and 31 October 2021.

1.18

A list of the 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 is at Appendix 2.

Timeliness

1.19

Standing Order 25(20)(c) requires the committee to report to the Senate on the presentation of annual reports.

1.20

Commonwealth entities and companies are required to present annual reports to the responsible minister in accordance with timeframes set out in relevant legislation. The minister is then required to table the annual report in Parliament. All entities, except the National Mental Health Commission, the Australian Sports Foundation and the National Blood Authority presented their annual reports for 2020–21 to Parliament in a timely manner, by 31 October 2021.

1.21

The 2020–21 annual report of the National Mental Health Commission was first tabled in the House of Representatives on 25 November 2021, almost four weeks past the required reporting date of 31 October 2021.8 No further information was provided by the National Mental Health Commission on the reasons behind the delay in presenting their annual report.

1.22

The committee notes that the Australian Sports Foundation and the National Blood Authority provided their annual reports to the minister prior to 31 October 2021, however, failed to table their reports by 31 October.9

1.23

The committee considers when Senate Estimates hearings should be scheduled prior to 31 October of each year. The 2021–22 Supplementary Budget Estimates hearings took place on 27 and 28 October 2021. It is best practice for annual reports to be tabled before those hearings.

1.24

Apart from the three entities mentioned above, all other entities presented their annual reports to Parliament prior to the 2021–22 Supplementary Budget Estimates hearings. The committee commends those entities that met this deadline.

Senate debate

1.25

In 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. The committee acknowledges that the Senate agreed to take note of a number of annual reports.10

Non-reporting bodies

1.26

Standing Order 25(20)(h) 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.

1.27

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

Apparently satisfactory

1.28

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

1.29

The committee has examined all annual reports referred under the Health portfolio and Social Services portfolio during the reporting period, and considers them apparently satisfactory.

1.30

However, the committee has noted areas of improvement for a number of Commonwealth entities and company, which are discussed further in Chapter 3.

Report structure

1.31

The report is structured in three chapters, as follows:

Chapter 1 – introduction;

Chapter 2 – examination of annual reports of lead portfolio departments; and

Chapter 3 – examination of annual reports of certain Commonwealth entities and companies.

1

Journals of the Senate, No. 42, 13 February 2020, pp. 1368–1369; Department of the Prime Minister and Cabinet, Administrative Arrangement Orders, 2 July 2021, https://www.pmc.gov.au/sites/default/files/publications/aao-2july-amendment.pdf, (accessed 27 May 2022).
2

The Senate, Standing Orders and other orders of the Senate, January 2020, SO 25(20).
3

Department of Finance, Resource Management Guide no. 137: Annual reports for Commonwealth companies, https://www.finance.gov.au/government/managing-commonwealth-resources/annual-reports-commonwealth-companies-rmg-137 (accessed 1 June 2022).
4

Department of Finance, List of Resource Management Guides, https://www.finance.gov.au/government/resource-management/list-az
(accessed 27 May 2022).
5

Note, the policy functions of these departments are outlined on the Administrative Arrangements Order, which is available online at https://www.legislation.gov.au/Details/C2021Q00014 (accessed 27 May 2022).
6

Accessible via the following web address: https://www.finance.gov.au/government/managing-commonwealth-resources/structure-australian-government-public-sector/pgpa-act-flipchart-and-list (accessed 27 May 2022).
7

Department of Social Services, Annual Report 2020–21, p. 11.
8

House of Representatives Votes and Proceedings (HVP), No. 156, 25 November 2021, p. 2362.
9

Journals of the Senate, No. 127, 23 November 2021, p. 4285; HVP, No. 153, 22 November 2021, p. 2319, Journals of the Senate, No. 126, 22 November 2021, p. 4251; HVP, No. 156, 25 November 2021, p. 2362.
10

The Senate took note of the following annual reports: The Australian Commission on Safety and Quality in Health Care, Journals of the Senate, No. 125, 21 October 2021, p. 4221; the National Health Funding Body, Journals of the Senate, No. 125, 21 October 2021, p. 4222; Services Australia, Journals of the Senate, No. 125, 21 October 2021, p. 4222; and the National Mental Health Commission, Journals of the Senate, No. 133, 2 December 2021, p. 4441.

| Contents |