1.1
This is the second report on annual reports for 2021 of the Senate Environment and Communications Legislation Committee (the committee). It provides an overview of selected annual reports of agencies within the committee’s allocated portfolios tabled in the Senate between 1 November 2020 and
30 April 2021.
1.2
Annual reports inform the parliament, stakeholders and other interested parties of the operations and performance of public sector departments, agencies and companies. They are a primary accountability mechanism. Additionally, annual reports are important reference documents and form part of the historical record of the Commonwealth.
Terms of reference
1.3
Under standing orders, the annual reports of certain departments and agencies are referred to the committee for examination and assessment. 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 the attention of the Senate to any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and
(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.
Allocated portfolios
1.4
In accordance with the resolution of the Senate on 4 July 2019 and amended on 13 February 2020, the committee is responsible for the examination of the expenditure and outcomes of the following portfolios:
Agriculture, Water and the Environment portfolio, excluding Agriculture and Water;
Infrastructure, Transport, Regional Development and Communications portfolio, excluding Infrastructure, Transport and Regional Development; and
Industry, Science, Energy and Resources portfolio, excluding Industry, Science, and Resources.
Reports examined
1.5
This report examines the following reports, tabled in the Senate or presented out-of-session to the President of the Senate and referred to the committee between 1 November 2020 and 30 April 2021:
Corporate Commonwealth entities
Australian National Maritime Museum—Annual Report 2019-20;
Director of National Parks—Annual Report 2019-20; and
National Film and Sound Archive of Australia—Annual Report 2019-20.
Statutory officer holders or bodies
Copyright Agency—Annual Report for the year ended 30 June 2020;
National Environment Protection Council—Annual Reports 2018-19;
Screenrights—Annual Report for the year ended 30 June 2020; and
Wet Tropics Management Authority—Annual Report 2019-2020.
Reports not examined
1.6
Where a report is referred to two standing committees, the committee defers examination of those reports to the committee which has primary oversight of the portfolio where the department or agency sits.
1.7
The committee is not obliged to report on Acts, statements of corporate intent, surveys, policy papers, budget documents, corporate plans or errata. The following documents were referred to the committee between 1 November 2020 and 30 April 2021, but are not examined in this report:
Australian Broadcasting Corporation—Diversity and Inclusion—Annual Report 2019-2020;
Australian Competition & Consumer Commission—Telstra’s Structural Separation Undertaking—Annual Compliance Report 2019-20;
Climate Change Authority—Review of the Emissions Reduction Fund—October 2020;
Funding of telecommunications consumer representation grants—Annual report 2019-20;
Independent Review of the EPBC Act—Final Report—October 2020; and
Wet Tropics Management Authority—State of the Wet Tropics 2019-2020.
Annual reporting requirements
1.8
A performance reporting framework is established for all Commonwealth entities and companies by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The performance framework of the PGPA Act requires all Commonwealth entities to measure and assess their performance according to the requirements prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).
1.9
The performance framework includes the requirement for Commonwealth entities to prepare a corporate plan and annual performance statements. The PGPA Rule contains the minimum requirements that must be included.
1.10
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 corporate plans and in any portfolio budget statement, portfolio additional estimates statement or other portfolio estimates statement that was prepared for the reporting period.
1.11
Below is a summary of the legislative authority and requirements for the different types of bodies under which annual reports are prepared:
Non-corporate Commonwealth entities: PGPA Act, section 46, and the PGPA Rule, subdivision 3A(A); for portfolio 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, subdivision 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.
Statutory office holders and statutory bodies: statutory office holders or bodies are engaged or employed under an Act, which may prescribe annual reporting requirements pursuant to the office or body.
Non-statutory bodies: the annual reporting requirements are contained in the government response to the Senate Standing Committee on Finance and Public Administration's Report on non-statutory bodies.
Changes to the PGPA Rule
1.12
On 1 December 2020, an amendment to Division 6A of the PGPA Rule commenced which applies to the making of grants by corporate Commonwealth entities. When a Minister is involved in making a grant, the amendment requires corporate Commonwealth entities to produce and publish guidelines and grants awarded on GrantConnect within 21 days after the day on which the grant commences or is made by or on behalf of a corporate Commonwealth entity. These entities must also provide appropriate advice to Ministers on their decision-making and reporting responsibilities. Ministers must report by 31 March each year for decisions made in the preceding calendar year. As Division 6A of the PGPA Rule commenced on
1 December 2020, for this reporting period it is only for the month of December 2020 that Ministers are required to report relevant decisions to make grants by 31 March 2021.
1.13
On 4 January 2021, a new Flipchart of PGPA Act Commonwealth entities and companies was released to reflect the establishment of the Office of the Special Investigator as a new non-corporate Commonwealth entity. There were no changes to the committee’s portfolio agencies.
1.14
On 1 February 2021, the new Public Governance, Performance and Accountability (Finance Minister to Accountable Authorities of Non-Corporate Commonwealth Entities) Delegation 2021 commenced. This new instrument repeals and replaces the delegation made by the previous Finance Minister and changes the title of the instrument and entity names to recognise machinery of government changes that have occurred since the last delegation amendment. Where accountable authorities have sub-delegated powers delegated by the Finance Minister under the previous delegation, accountable authorities will need to make new sub-delegations based on the new delegation instrument.
Timeliness
1.15
As part of its review of annual reports, the committee is required to investigate and report on any lateness in the presentation of annual reports. In assessing the timeliness of the presentation of annual reports, the committee assesses the presentation against the requirements of the PGPA Act, the PGPA Rule and other legislative requirements.
Presentation to ministers
1.16
The PGPA Act requires the provision of an annual report of a Commonwealth entity, including corporate and non-corporate entities, to the responsible minister by the 15th day of the fourth month after the end of the reporting period for the entity. For most agencies, this translates to 15 October each year. This part of the PGPA Act does not, however, provide a timeframe for the minister to present the report to the Parliament.
1.17
The arrangements for Commonwealth companies differ to some degree. The PGPA Act sets out the requirements for the provision of annual reports of Commonwealth companies to the responsible minister. In general, this amounts to four months after the end of the reporting period for each company.
Tabling in Parliament
1.18
The PGPA Rule states that annual reports for corporate Commonwealth entities, non-corporate Commonwealth entities and Commonwealth companies must comply with the Department of the Prime Minister and Cabinet’s Guidelines for the Presentation of Documents to the Parliament. In addition, the Department of Finance's resource management guides for corporate and non-corporate Commonwealth entities advise:
Normally annual reports are tabled on or before 31 October and it is expected annual reports are tabled prior to the October Estimates hearings. This ensures annual reports are available for scrutiny by the relevant Senate standing committee.
1.19
Entities reporting in accordance with their own legislation are often required to prepare for the relevant minister their annual report 'as soon as is practicable' after the end of the particular period to which the report relates. The Acts Interpretation Act 1901 stipulates that where no date for providing a report to a minister is specified, the report should be presented no more than six months after the reporting period, and the minister must provide the report to the Parliament within 15 days after the minister receives it.
1.20
Where a deadline for presenting an annual report cannot be met, a Commonwealth entity or company can seek an extension of time to report under the Acts Interpretation Act 1901, by advising the responsible minister of the reasons why the entity cannot comply with the deadline. The responsible minister is required to table this application and a statement specifying whether the extension was granted and the reasons for the extension in both houses of the Parliament.
Timeliness of reports examined
1.21
In its Annual report (No. 1 of 2021) tabled on 24 February 2021, the committee noted its disappointment that the timeliness of the presentation of annual reports had deteriorated compared to years past.
1.22
Regarding the annual reports considered in this report, annual reports for the following Corporate Commonwealth entities were not tabled in either House of Parliament by the responsible Minister until after the commencement of the committee's budget estimates hearings:
Australian National Maritime Museum;
Director of National Parks; and
National Film and Sound Archive of Australia.
1.23
As for the statutory bodies, the annual reports of the Wet Tropics Management Authority, Screenrights, and Copyright Agency were all tabled within the required statutory period (within 15 sitting days after the Minister’s receipt of the report).
1.24
The National Environmental Protection Council’s (the Council) annual report was formally agreed to by the Council on 14 January 2021. Pursuant to its relevant legislation, the Council’s annual report was tabled as required within seven sitting days from this date.
1.25
The committee encourages all Commonwealth agencies and statutory bodies to follow best practice in future by tabling their annual reports prior to estimates hearings. This will ensure that there is sufficient time for the committee to consider the content and performance information provided in annual reports prior to the commencement of its hearings.
1.26
Appendix 1 lists the annual reports tabled (or presented) in the House of Representatives and the Senate between 1 November 2020 and 30 April 2021 and referred to the committee, with relevant tabling dates. For the purposes of the committee's examination of timeliness, the earlier date is taken as the presentation date to the Parliament. The table also includes the dates the reports were submitted to, and received by, the relevant Minister.
1.27
Appendix 2 lists documents tabled (or presented) in the House of Representatives and the Senate between 1 November 2020 and 30 April 2021 and referred to the committee, with relevant tabling dates.
Senate debate
1.28
In accordance with standing orders, the committee is required to take into account any relevant remarks about annual reports made in debate in the Senate.
1.29
On 18 February 2021, a number of senators made statements in relation to the payment of executive bonuses as reported in the annual reports of the Australian Broadcasting Corporation and NBN Co Limited. The following statements were made:
Senator Abetz noted the Australian Broadcasting Corporation's annual report for 2019-20 and, after outlining the bonuses paid in various salary brackets, he stated:
I happen to believe, as someone on this side of the chamber, that any bonus has to be exceptionally well justified, and, as far as I can see, there's nothing in the ABC report which justifies these excessive and hefty bonuses.
Senator O’Neill noted NBN Co Limited’s annual report for 2019-20 and, in doing so, discussed NBN Co Limited’s performance whilst reflecting on $78 million in bonuses paid in the 2019-20 financial year, stating:
That is $78 million going to people for doing a good job at NBN Co. It's not a good job if you can't actually access technology and you can't run your business and you can't communicate with your neighbours ... It's not doing a good job when 238,000 premises—that we know of—still can't access the minimum guaranteed NBN speeds that are required by law.
Senator Pratt also noted NBN Co Limited’s annual report for 2019-20 and stated that it:
…does not demonstrate a delivery of the Australian government's commitments to the Australian community in relation to a fast and affordable broadband service… In the annual report there should be transparent information about the nature of cost blow-outs and how they've occurred.
Non-reporting bodies
1.30
Standing orders require that the committee report on any bodies which do not present annual reports to the Senate but should present such reports. The committee notes that there are no relevant bodies which are required to present an annual report to the Senate which have not done so.
Apparently satisfactory
1.31
Standing orders require 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 presentation and compliance with relevant reporting requirements.
1.32
The committee has examined all annual reports referred during the reporting period and considers that they are 'apparently satisfactory'.