Introduction
1.1
This is the Senate Education and Employment Legislation Committee's (the
committee) first report on annual reports for 2019. It provides an overview of
the committee's examination of annual reports for the 2017-18 financial year.
Terms of Reference
1.2
This report was prepared pursuant to Standing Order 25(20) relating to
the consideration of annual reports by committees, which states:
Annual reports 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:
- Examine each annual report referred to it and report to the Senate
whether the report is apparently satisfactory.
- 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.
- Investigate and report to the Senate on any lateness in the presentation
of annual reports.
- In considering an annual report, take into account any relevant remarks
about the report made in debate in the Senate.
- If the committee so determines, consider annual reports of departments
and budget-related agencies in conjunction with examination of estimates.
- 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.
- Draw to the attention of the Senate any significant matters relating to
the operations and performance of the bodies furnishing the annual reports.
- 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.
Allocated portfolios
1.3
In accordance with the resolution of the Senate on 31 August 2016, as
amended on 12 February 2018, the committee has oversight of the following
portfolios:
- Education and Training; and
- Jobs and Small Business.[1]
Role of annual reports
1.4
Annual reports place information about government departments and
agencies on the public record in relation to the performance, activities,
management and financial position of the reporting body. They are a primary
accountability mechanism and assist the Parliament in the effective examination
of the performance of departments and agencies, and the administration of
government programs.
Annual reporting requirements
1.5
The annual reporting requirements of departments and agencies have a defined
legislative framework.
1.6
The Public Governance, Performance and Accountability Act 2013
(PGPA Act) establishes a performance reporting framework for all
Commonwealth entities and companies. Section 39 of the PGPA Act requires all
Commonwealth entities to prepare an annual performance statement and include
those statements in their annual reports. Entities use the annual performance
statements to report on the results achieved against the targets, goals and
measures established at the beginning of a reporting year in its corporate
plan.
1.7
The Public Governance, Performance and Accountability Rule 2014 (PGPA
Rule), established under the PGPA Act, details the requirements for the
corporate plan, annual performance statements as well as the guidelines for
annual reports.[2]
1.8
A range of PGPA Act bodies provide annual reports which are referred to committees
for examination.
PGPA Act bodies
1.9
The PGPA Act categorises bodies as a Commonwealth entity (either a non‑corporate
Commonwealth entity or a corporate Commonwealth entity), or a Commonwealth
company, as detailed below:
- Non-corporate Commonwealth entity—an entity that is legally and
financially part of the Commonwealth, and includes departments of state,
parliamentary departments, statutory authorities, and listed entities (a body,
person, group of persons or organisation that is prescribed by rules made under
the PGPA Act).
- Corporate Commonwealth entity—a body corporate that has a
separate legal personality from the Commonwealth, and includes certain statutory
authorities. It can act in its own right exercising certain legal rights such
as entering into contracts and owning property.
- Commonwealth company—a company established by the Commonwealth under
the Corporations Act 2001 that is controlled by the Commonwealth.
Annual reporting requirements
1.10
Annual reporting requirements for non‑corporate and corporate
Commonwealth entities are set out in section 46 of the PGPA Act, including that
annual reports must comply with any requirements prescribed by the PGPA Rule.
Section 97 prescribes the annual reporting requirements for Commonwealth
companies.
1.11
Below is a summary of the instruments under which the 2017-18 annual
reports were prepared:
Non-corporate Commonwealth
entities:
- PGPA Act, section 46 and the PGPA Rule, Division 3A(A);
- for portfolio departments and executive agencies, the Public
Service Act 1999, subsections 63(2) and 70(2);
- for parliamentary departments, the Parliamentary Service Act 1999,
section 65; and
- for statutory bodies, relevant enabling legislation.
Corporate Commonwealth entities:
- PGPA Act, section 46 and the PGPA Rule, Division 3A(B); and
- for statutory bodies, relevant enabling legislation.
Commonwealth companies:
- PGPA Act, section 97, which also refers to requirements under the
Corporations Act 2001 and the PGPA Rule, Part 3-3; and
- for statutory bodies, relevant enabling legislation.
Annual reports referred
1.12
In accordance with Senate Standing Order 25(20)(f) this report examines
those annual reports tabled between 1 May and 31 October 2018. The committee
examined the following reports:
Non-corporate entities:
- Asbestos Safety and Eradication Agency (ASEA);
- Australian Building and Construction Commission (ABCC);
- Australian Research Council (ARC);
- Australian Skills Quality Authority (ASQA);
- Department of Education and Training;
- Department of Jobs and Small Business;
- Fair Work Commission;
- The Fair Work Ombudsman and Registered Organisations Commission
Entity;[3]
- Safe Work Australia;
- Seafarers Safety, Rehabilitation and Compensation Authority
(Seacare Authority); and
- Tertiary Education Quality and Standards Authority (TEQSA).
Corporate entities:
- Australian Curriculum Assessment and Reporting Authority (ACARA);
- Australian National University (ANU);
- Coal Mining Industry (Long Service Leave Funding) Corporation; and
- Comcare and Safety, Rehabilitation and Compensation Commission.
Commonwealth companies:
- Australian Institute for Teaching and School Leadership (AITSL).
Reports not examined
1.13
The committee is not obliged to report on Acts, statements of corporate
intent, surveys, policy papers, budget documents, corporate plans or errata.
Accordingly, the following documents were referred to the committee but are not
examined in this report:
- International Labour Organisation—Submission reports on ILO
instruments—Employment and Decent Work for Peace and Resilience Recommendation,
2017 (no. 205);
- Australian
Building and Construction Commission—Performance of the functions and the
exercise of powers of the Australian Building and Construction
Commissioner—Quarterly report for the period 1 January to 31 March 2018;
- Australian Building and Construction Commission—Performance of
the function and the exercise of powers for the Australian Building and
Construction Commissioner—Quarterly report for the period 1 April to
30 June 2018;
- National School Resourcing Board—Review of socio-economic status
of score methodology—Final report, dated June 2018;
- Building and Construction Industry (Improving Productivity)
Act 2016—Report by the Commonwealth Ombudsman for the period 1 July to
30 September 2017; and
- Final budget outcome 2017-18—Report by the Treasurer (Mr
Frydenberg) and the Minister for Finance (Senator Cormann), dated September 2018.
Method of assessment
1.14
Senate Standing Order 25(20) requires the committee to examine the
annual reports referred to it to determine whether they are timely and
'apparently satisfactory'. In making this assessment, the committee considers
whether the reports comply with the relevant legislation and requirements for
the preparation of annual reports.
Timeliness
Presentation to ministers
1.15
Section 46 of the PGPA Act requires Commonwealth entities, both
corporate and non-corporate, to prepare an annual report and provide it to the
responsible Minister by the 15th day of the fourth month after the
end of the reporting period, which translates as 15 October. Certain agencies,
however, may have a specific date stipulated by their enabling legislation.
1.16
For Commonwealth companies, the deadline for providing the report to the
responsible minister is stipulated under section 97 of the PGPA Act, namely
four months after the end of the company's reporting period.
1.17
For this reporting period the annual reports of all non-corporate and
corporate Commonwealth entities, and Commonwealth companies, were presented to
the relevant ministers in a timely manner.
Tabling in Parliament
1.18
Formerly, annual reports of non-corporate entities had to be presented
by the responsible Minister to each House of Parliament on or before 31 October
each year.[4]
There is no longer an explicit stipulation for this to occur as the PGPA Rule
is silent on this matter. However, as explained below, the PGPA Rule does recommend
that such reports be tabled before Supplementary Budget Estimates.
1.19
The PGPA Rule states that annual reports for corporate Commonwealth
entities, non-corporate Commonwealth entities and Commonwealth companies must
comply with the Guidelines for the Presentation of Documents to the
Parliament which is prepared by the Department of the Prime Minister and
Cabinet.[5]
1.20
The guidelines advise that for all Commonwealth entities:
As per past practice, it is expected that the responsible
Minister will present the report to each House of Parliament on or before 31 October.
If Senate Supplementary Budget Estimates hearings are scheduled to occur prior
to 31 October, it is best practice for annual reports to be tabled prior to
those hearings. This ensures that annual reports are available for scrutiny by
the relevant Senate standing committee.[6]
1.21
For Commonwealth companies, subsection 97(5) of the PGPA Act states that
the Minister must table the reports as soon as practicable after receiving
them.[7]
This provision is clarified in the Guidelines for the Presentation of Documents
to the Parliament which sets out the expectation that reports will be
tabled on or before 31 October, or sooner if Senate Supplementary Budget
Estimates hearings are scheduled prior to 31 October.[8]
1.22
In this regard the committee notes that the Joint Committee on Public
Accounts and Audit (JCPAA) has considered formally bringing the tabling date
forward:
...the [JCPAA] Committee believes that bringing forward both of
these dates [presentation to ministers and tabling in Parliament], and
formalising the required tabling date in legislation, is both viable and
valuable. If achieved, it will provide some certainty to Senate Estimates
Committees in particular that the important performance information in annual
reports will be made available in a timely manner to assist scrutiny.[9]
1.23
In December 2017, the committee wrote to all departments and agencies
under the Jobs and Small Business and Education and Training portfolios
reminding them that it is best practice to ensure that annual reports are
tabled prior to Supplementary Budget Estimates. The correspondence also noted
that several agencies had not met these guidelines and that the committee
encouraged them to do so in the future. With a few understandable exceptions,
all agencies responded positively, noting that they will take all necessary
steps to table future annual reports before the commencement of Supplementary
Budget Estimates.
1.24
The committee notes that all bodies have met the recommended timeframe
for tabling annual reports in Parliament prior to the commencement of the
2018-19 Supplementary Budget Estimates. The committee welcomes this improved
timeliness in tabling annual reports and thanks both departments and all
associated agencies. The committee further encourages departments and agencies
to continue this best practice in the future.
1.25
The following bodies tabled annual reports in the Senate prior to the
commencement of Supplementary Budget Estimates:
- Australian Institute for Teaching and School
Leadership;
- Australian Skills Quality Authority;
- Australian National University;
- Tertiary Education Quality and Standards Agency;
- Australian Building and Construction Commission;
- Comcare and Safety, Rehabilitation and Compensation
Commission;
- Department of Jobs and Small Business;
- Fair Work Commission;
- Fair Work Ombudsman and Registered Organisations
Commission Entity; and
- Seafarers Safety, Rehabilitation and Compensation
Authority (Seacare).
1.26
The following bodies tabled annual reports in the House of
Representatives prior to the commencement of the Supplementary Budget Estimates
hearings for the Jobs and Small Business and Education and Training portfolios but
did not table in the Senate until 12 November:
- Australian Curriculum, Assessment and Reporting;
- Australian Research Council;
- Department of Education and Training;
- Asbestos Safety and Eradication Agency; and
- Safe Work Australia.[10]
1.27
The Coal Mining Industry (Long Service Leave Funding) Corporation tabled
its annual report in the House of Representatives on 24 October 2018. This was
the day of the Supplementary Budget Estimates hearing for the Jobs and Small
Business portfolio. The committee, however, acknowledges that the corporation
was not requested to appear at the Supplementary Budget Estimates hearings.
1.28
The committee reminds all entities and companies that it is best
practice for annual reports to be tabled prior to Supplementary Budget
Estimates, which this year is due to commence on 21 October 2019. The committee
further notes that it is possible for agencies to table their annual reports
out-of-sitting to ensure that they meet their statutory obligations and to
ensure that reports are available before Supplementary Budget Estimates.
1.29
Appendix 1 lists the annual reports which were presented to Parliament
between 1 May 2018 and 31 October 2018 and referred to the committee, with relevant
tabling dates.
Senate debate
1.30
Senate Standing Order 25(20) requires the committee to take into account
any relevant remarks about the reports made in debate in the Senate. The
committee notes that the annual reports examined in this report have not been
the subject of comments or debates in the Senate.
Bodies not presenting annual reports to the Senate
1.31
The committee is required to report to the Senate on whether there are
any bodies which should have presented an annual report to the Senate but did
not. The committee is satisfied that there are no such bodies at this time.
General comments on reports
1.32
The reports presented by most agencies met all requirements under the
PGPA Rule relating to the inclusion of a letter of transmittal, independent
auditor's report, appropriate style and formatting, and assessment of
performance against targets.[11]
1.33
The committee reminds ACARA, AITSL and the Coal Mining Industry (Long
Service Leave Funding) Corporation to include an alphabetical index of the
contents of the report in all future annual reports in accordance with clause
17AJ of the PGPA Rule.
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