Introduction
1.1
The Senate Finance and Public Administration Legislation Committee (the
committee) is responsible for examining the annual reports of the Parliamentary
departments,[1]
and the departments and agencies of the Prime Minister and Cabinet Portfolio
and the Finance Portfolio.
1.2
This is the first report on annual reports for 2018 and provides an
overview of selected annual reports for the 2016–17 financial year presented to
the Parliament between 1 May 2017 and 31 October 2017. Copies of this and other
committee reports can be obtained from the Senate Table Office or online at the
committee's web page.
Terms of reference
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:
- 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; and
- 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 the 45th Parliament, the Senate allocated departments and
agencies to committees on 31 August 2016.[2]
In accordance with that resolution, the committee has responsibility for the
oversight of the following portfolios:
-
Parliament;
-
Prime
Minister and Cabinet Portfolio (PM&C Portfolio); and
-
Finance Portfolio.
Performance Reporting Framework
1.5
The Public Governance, Performance and Accountability Act 2013
(PGPA Act) established a performance reporting framework for all Commonwealth
entities and companies.
1.6
Section 38 of the PGPA Act requires all Commonwealth entities to measure
and assess their performance.
1.7
The performance framework provides for performance planning, measurement
and reporting by an entity through planned performance information presented in
the Portfolio Budget Statements (PBS) and corporate plan, and then reported in
the annual report, which includes an annual performance statement.
1.8
These documents are an essential part of the accountability system that
provides the government with detailed information about the actual financial
and non-financial performance of entities, and forecasts future needs and
expectations against the outcomes actually achieved.[3]
1.9
The Public Governance, Performance and Accountability Rule 2014 (PGPA
Rule) supports the implementation of the PGPA Act and outlines the requirements
of annual reports for Commonwealth entities.
Requirements for Annual Reports
1.10
Annual reports place a great deal of information about government
departments and agencies on the public record in relation to the performance,
activities, management and financial position of the reporting body. Annual
reports are a key document under the Commonwealth performance framework and are
'the primary document through which responsible Ministers report to the
Parliament on the actual performance of entities'.[4]
1.11
Below is a summary of the legislative authority and requirements for the
preparation of annual reports by different types of Commonwealth bodies:
-
Non-corporate Commonwealth entity[5]—PGPA
Act, section 46 and the PGPA Rule Division 3A(A); for portfolio departments and
executive agencies, the Public Service Act 1999, sections 63(2) and
70(2);
-
Corporate Commonwealth entity[6]—PGPA
Act, section 46 and the PGPA Rule, Division 3A(B);
-
Commonwealth company[7]—PGPA
Act, section 97, which also refers to requirements under the Corporations
Act 2001 and the PGPA Rule, Part 3–3;
-
Statutory office holders and statutory bodies—statutory office
holders are engaged or employed under an Act, which may prescribe annual
reporting requirements pursuant to the office. It should be noted that there
may be reporting requirements in the enabling legislation for statutory bodies
(which may also be a Commonwealth entity);[8]
and
-
Non-statutory bodies—non-statutory bodies (NSBs) are established
by a Minister and are not pursuant to a statute. Guidelines for the preparation
of annual reports for NSBs are contained in the government response to the
Senate Standing Committee on Finance and Public Administration Report on
Non-Statutory bodies. [9]
1.12
In addition to legislative requirements, the Department of Finance
(Finance) provides guidance material for Commonwealth entities' and companies'
which provide further detail on the content requirements for annual reports
under the Commonwealth performance framework in accordance with the PGPA Act
and PGPA Rule.[10]
The material available from this website includes the following:
-
Resource Management Guide No. 135—Annual reports for
non-corporate Commonwealth entities;
-
Resource Management Guide No. 136—Annual reports for corporate
Commonwealth entities; and
-
Resource Management Guide No. 137—Annual reports for
Commonwealth companies.
Reports examined
1.13
In accordance with Standing Order 25(20)(f), this report examines annual
reports tabled between 1 May 2017 to 31 October 2017. Twenty-six annual reports
of bodies or statutory office holders were presented to the Parliament and
referred to the committee. The reports examined are categorised as follows:
Non-corporate Commonwealth entities
Parliamentary departments
-
Department of the Senate—Report for 2016–17
-
Department of Parliamentary Services—Report for 2016–17
-
Parliamentary Budget Office—Report for 2016–17
Departments of State
-
Department of the Prime Minister and Cabinet—Report for 2016–17
-
Department of Finance—Report for 2016–17
Agencies
-
Australian National Audit Office—Report for 2016–17
-
Office of the Commonwealth Ombudsman—Report for 2016–17
-
Office of the Inspector-General of Intelligence and
Security—Report for 2016–17
-
Office of the Official Secretary to the Governor-General—Report
for
2016–17
-
Australian Electoral Commission—Report for 2016–17
-
Future Fund Board of Guardians and Future Fund Management
Agency—Report for 2016–17
Corporate Commonwealth entities
-
Central Land Council—Report for 2016–17
-
Indigenous Business Australia—Report for 2016–17
-
Indigenous Land Corporation—Report for 2016–17
-
Northern Land Council—Report for 2016–17
Commonwealth companies
-
National Australia Day Council—Report for 2016–17
-
Aboriginal Hostels Limited—Report for 2016–17
-
ASC Pty Ltd—Report for 2016–17
-
Australian Naval Infrastructure Pty Ltd—Report for 2016–17
Statutory office holders/offices
-
Parliamentary Service Commissioner—Report for 2016–17, including
report of the Parliamentary Service Merit Protection Commissioner
-
Remuneration Tribunal—Report for 2016–17
-
Executive Director of Township Leasing—Report for 2016–17
-
Australian Public Service Commissioner—Report for 2016–17,
incorporating the annual report of the Merit Protection Commissioner
-
Independent Parliamentary Expenses Authority—Report for 2016–17
Reports not examined
1.14
The committee is not obliged to examine reports on the operation of
Acts, policy papers, budget documents or corporate plans. Where a report is
referred to two standing committees, the committee has deferred examination of
those reports to the committee which has primary oversight of the portfolio
where that agency sits. Accordingly, the following documents were also referred
to the committee but not examined in this report:
-
Independent National Security Legislation Monitor—Report No.
1—September 2017—Review of Division 3A of Part 1AA of the Crimes Act 1914:
Stop, Search and Seize Powers.
-
Independent National Security Legislation Monitor—Report No.
2—September 2017—Sections 119.2 and 119.3 of the Criminal Code: Declared Areas
-
Independent National Security Legislation Monitor—Report No.
3—September 2017—Review of Divisions 104 and 105 of the Criminal Code
(including the Interoperability of Divisions 104 and 105A): Control Orders and
Preventative Detection Orders
-
Indigenous Business Australia—Corporate Plan 2017–18 to 2020–21
-
Final Budget Outcome 2016–17—Report by the Treasurer and Minister
for Finance
-
Clean Energy Finance Corporation—Report for 2016–17 (Also
referred to the Environment and Communications Legislation Committee)
-
Moorebank Intermodal Company Limited—Report for 2016–17 (Also
referred to the Rural and Regional Affairs and Transport Committee)
Timeliness
1.15
The PGPA Act requires Commonwealth entities (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 for the entity.[11]
1.16
This section of the Act, however, does not provide a timeframe for the
Minister to present the report to the Parliament. The Finance Resource
Management Guides, advise:
It has been practice for the responsible Minister to present
the report to each house of the Parliament on or before 31 October.[12]
1.17
Under section 97(2) of the PGPA Act, Commonwealth companies are required
to prepare an annual report and provide it to the responsible Minister:
- if the company is required by the Corporations Act 2001 to hold
an annual general meeting—the earlier of the following:
- 21 days before the next
annual general meeting after the end of the reporting period for the company;
- 4 months after the end of the
reporting period for the company; and
- in any other case—4 months after the end of the reporting
period for the company; or
the end of such further period granted under subsection 34C(5) of the Acts
Interpretation Act 1901.
1.18
In relation to the tabling of the annual report in the Parliament, subsection
97(5) of the PGPA Act states that:
(5) If the Commonwealth company is a wholly-owned
Commonwealth company, or is not required to hold an annual general meeting, 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
responsible Minister must table the documents in each House of the Parliament
as soon as practicable after the annual general meeting of the company.
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 PM&C (the guidelines). [13]
1.20
The guidelines advise that for all 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.[14]
Timeliness of reports examined
1.21
The committee considers the timely presentation of annual reports to be
an important element in accountability to the Parliament and continues to
encourage bodies and statutory offices to endeavour to meet relevant
timeframes.
1.22
Appendix 1 lists the annual reports tabled (or presented) in Parliament
between 1 May 2017 and 31 October 2017, with relevant tabling dates. This table
includes the date the reports were tabled in the Senate and House of
Representatives, and for the purposes of this discussion on timeliness, the
earlier date of tabling in either chamber is taken to be the date of presentation
to the Parliament. The table also provides the dates the reports were submitted
to, and received by, the Prime Minister or the relevant Minister.
1.23
Standing Order 25(20)(c) requires the committee to investigate and
report to the Senate on any lateness in the presentation of annual reports. In
assessing the timeliness of the presentation of annual reports, the committee
assesses the presentation time against the requirements for different
categories of bodies.
1.24
In relation to the first element, most of the Commonwealth entities met
their prescribed reporting timeframe under section 46 of the PGPA Act by
submitting their reports to the Minister by 15 October 2017. Two entities that
did not meet this requirement included Moorebank Intermodal Company and Clean
Energy Finance Corporation. All entities met the guidelines of best practice
that require an entity to present the report to at least one House of
Parliament on or before the 31 October.[15]
1.25
The committee continues to encourage Ministers and agencies to present
annual reports in sufficient time for examination by Senators before Supplementary
Budget Estimates hearings. The committee commends those who tabled annual
reports before the commencement of Supplementary Budget Estimates 2017–18 on 23
October 2017.
Senate debate
1.26
In accordance with Standing Order 25(20)(d) the committee is required to
take into account any relevant remarks about the reports made in debate in the
Senate. The committee notes that none of the annual reports examined in this
report have been the subject of comments or debate in the Senate.
Non–reporting bodies
1.27
Standing Order 25(20)(h) requires that the committee inquire into, and
report on, any bodies which do not present annual reports to the Senate but
should present such reports.
1.28
The committee makes no recommendation for any bodies not presenting an
annual report to do so.
Assessment of reports
1.29
Under Standing Order 25(20)(a), the committee is required to examine the
annual reports of departments and agencies referred to it and report to the
Senate on whether they are timely and 'apparently satisfactory'. In order to
make an assessment of the reports, the committee must consider whether the
reports comply with the relevant legislation and guidelines. The committee
considers all reports examined to be 'apparently satisfactory'.
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