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]
the departments and agencies of the Prime Minister and Cabinet Portfolio and
the Finance Portfolio.
1.2
This is the second 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 November 2017 and 30 April 2018. 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:
-
Parliamentary departments;
-
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 planning, measurement and
reporting by an entity through performance information presented in an entity's
corporate plan and aligned to the Portfolio Budget Statements (PBS), and then
reported in the annual performance statement within the annual report.
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. Within the
Commonwealth performance framework, annual reports 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) and section 9(3) of the Parliamentary Service Act 1999;
-
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 sets out 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 November 2017 and 30 April 2018. Eleven annual reports
of Commonwealth entities and statutory office holders were presented to the
Parliament and referred to the committee. The reports examined are categorised
as follows:
Non-corporate Commonwealth entities
-
Digital Transformation Agency—Report for 2016–17
Corporate Commonwealth entities
-
Anindilyakwa Land Council—Report for 2016–17
-
Tiwi Land Council—Report for 2016–17
-
Torres Strait Regional Authority (TSRA)—Report for 2016–17
-
Wreck Bay Aboriginal Community Council—Report for 2016–17
-
Commonwealth Superannuation Corporation (CSC)—Report for 2016–17
-
Defence Housing Australia—Report for 2016–17
Commonwealth companies
-
Outback Stores Pty Ltd—Report for 2016–17
Statutory office holders/ offices
-
Independent National Security Legislation Monitor—Report 2016–17
-
Aboriginal Land Commissioner—Report for 2016–17
-
Australian Political Exchange Council—Report for 2013–2016
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:
-
Australian Public Service Commission—State of the Service—Report
for 2016–17
-
Commonwealth Ombudsman's reports—Report no. 1 of 2018
-
Commonwealth Ombudsman's reports—Report no. 1 of 2018—Government
response, dated 5 February 2018
-
Commonwealth Ombudsman's reports—Report no. 2 of 2018
-
Commonwealth Ombudsman's reports—Report no. 2 of 2018—Government
response, dated 5 February 2018
-
Closing the Gap
-
Ministerial statement by the Prime Minister (Mr Turnbull), dated
12 February 2018
-
Prime Minister's report 2018
-
Indigenous Land Council—National Indigenous Land Strategy 2018–2022
-
Auditor-General—Audit report no. 25 of 2017–18—Performance
Audit—Australian Electoral Commission's Procurement of Services for the Conduct
of the 2016 Federal Election: Australian Electoral Commission
-
Department of Finance—Consolidated financial statements in
respect of the year ended 30 June 2017
-
Australian Electoral Commission—Electoral Funding and Disclosure
Report—Federal Election 2016
-
Commonwealth Electoral Act 1918—Redistribution into
electoral divisions—Tasmania—Report, together with composite map and compact
disc of supporting information, dated November 2017
-
Department of Finance—Campaign Advertising by Australian
Government Departments and Agencies—Annual Report 2016–17
-
Department of the Treasury—Tax Expenditures Statement—2017
-
Mid-year economic and fiscal outlook—2017–18—Statement by the
Treasurer (Hon Scott Morrison MP) and the Minister for Finance (Senator the Hon
Mathias Cormann).
-
Report on Ministerial Consultants Engaged under the Members of
Parliament (Staff) Act 1984—Report for 2016–17
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:
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 the 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 November 2017 and 30 April 2018, 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, however one
entity, the Digital Transformation Agency, did not meet this timeframe. In
respect of the second element, all entities failed to meet the guidelines of
best practice that require an entity to present the report to each House of
Parliament on or before the 31 October.
1.25
In relation to statutory bodies, reporting requirements are prescribed within
legislation. For example, the Aboriginal Land Commissioner is required under
the Aboriginal Land Rights (Northern Territory) Act 1976 to prepare and
give to the Minister an annual report on operations as soon as practicable
after 30 June each year. Under this Act, the Minister is required to present
the report to the Parliament within 15 sitting days of receipt. The same
reporting obligations apply to the Independent National Security Legislation
Monitor under section 46 of the Independent National Security Legislation
Monitor Act 2010 (Cth).
1.26
In assessing the received reports of statutory bodies to determine the
tabling requirements of Ministers presenting the report to Parliament within 15
sitting days of receipt, all statutory office holders meet this timeline.
1.27
The committee notes that all entities should table annual reports by
31 October or where legislated for statutory bodies, within 15 sitting
days.[15]
The committee encourages entities and Ministers to meet these dates.
Senate Debate
1.28
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 subject to debate in the Senate.
Non-reporting bodies
1.29
Standing Order 25(20)(h) requires that the committee inquiry into, and
report on, any bodies which do not present annual reports to the Senate but
should present such reports.
1.30
The committee makes no recommendation for any bodies not presenting an
annual report to do so.
Assessment of reports
1.31
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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