Review of selected reports
2.1
Standing Order 25(20)(b) provides for the committee to consider selected
reports in more detail. The 2018–19 annual reports of the following bodies
were selected:
-
Department of Finance;
-
Department of the Prime Minister and Cabinet;
-
Indigenous Business Australia;
-
National Australia Day Council; and
-
North Queensland Livestock Industry Recovery Agency.
Department of Finance
2.2
The Department of Finance (Finance) supports the Australian government
to:
achieve its fiscal and policy objectives by advising on
expenditure, managing sustainable public sector resourcing, driving public
sector transformation and delivering efficient, cost-effective services to, and
for, Government.[1]
2.3
In 2018–19, the department reported to the following Ministers:
-
Senator the Hon Mathias Cormann, Minister for Finance;
-
Senator the Hon Zed Seselja, Assistant Minister for Finance,
Charities and Electoral Matters;
-
the Hon Alex Hawke MP, Special Minister of State (until
29 May 2019); and
-
the Hon David Coleman MP, Assistant Minister for Finance (until
28 August 2018).[2]
2.4
Finance's Annual Report 2018–19 was tabled in both Houses of
Parliament on 15 October 2019.[3]
In accordance with subsection 35(1) and section 16E of the Public
Governance, Performance and Accountability Act 2013 (PGPA Act), Finance's
corporate plan for the reporting period is available for review on its
website.
Compliance
2.5
Finance prepared its annual report under the requirements of the PGPA
Act, the Public Governance, Performance and Accountability Rule 2014 (PGPA
Rule), as well as in accordance with Resource Management Guide (RMG) No. 135.[4]
In addition, the department is also required to provide information pursuant to
the Work Health and Safety Act 2011, the Environment Protection
and Biodiversity Conservation Act 1999 and the Commonwealth
Electoral Act 1918.[5]
The committee found the annual report to be compliant in each of its reporting
requirements.
Performance
2.6
Finance's 2018–19 annual report assessed its performance against
26 performance criteria set out in the corporate plan and Portfolio Budget
Statements 2018–19 (PBS).[6]
The committee found Finance's annual performance statement to be well
structured and informative. However, it would have been assisted by the
inclusion of a summary table to improve clarity for measuring the results.
2.7
The annual performance statement mapped each performance criterion
against its relevant purpose. The department achieved targets for 21 of its 26
performance criteria and substantially achieved the remaining five. The results
of each performance criterion in the annual performance statements were
accompanied by an analysis, which assisted the committee in measuring the
extent to which the department met each performance criterion.
Budget papers and related updates
2.8
In 2018–19 Finance reported that it had 'substantially achieved' its
performance criterion to revise to improve the accuracy and timely delivery of
Budget papers, Appropriation Bills and related updates.[7]
The department's corporate plan for the reporting period provided that this
criterion would be assessed according to:
-
tabling dates for Budget Papers and Appropriation Bills being
recorded in the Hansard;
-
program estimates being prepared using the 'best available
information to maximise their reliability and accuracy';
-
budget papers and updates outlining 'external reporting standards
used' and identifying 'any departures from that standard' ; and
-
explanations for significant differences between estimated
expenses and final outcome reported annually.[8]
2.9
During the reporting period, all Budget papers and related material were
produced within timeframes and requirements set by the Charter of Budget
Honesty Act 1998.[9]
The results and analyses of this criterion in the annual report's annual
performance statement discussed that the criterion was not completely met due
to accuracy of the material in two measures:[10]
Measure |
Target |
Result |
Difference between revised estimated expenses at the Mid Year
Economic Fiscal Outlook and the Final Budget Outcome |
Less than 1.0 per cent |
1.1 per cent |
Difference between revised estimated expenses at Budget and
the Final Budget Outcome |
Less than 0.5 per cent |
0.6 per cent |
Corporate service functions
2.10
Finance reported that it had 'substantially achieved' its performance
criterion to provide corporate service functions to non-corporate Commonwealth
agencies through a shared services provider hub arrangement on common platforms
and software.[11]
The corporate plan provided that this criterion would be assessed through:
-
evidence of the uptake of shared
service arrangements for non-corporate Commonwealth entities;
-
evidence of increased efficiency
in delivering corporate service functions within shared services provider hubs;
and
-
reduction in the number of
individual Enterprise Resource Planning systems across Hubs, through
coordinated investment in platforms and software.[12]
2.11
The results and analyses of this criterion in the annual report's annual
performance statement indicated that the number of agencies participating in
the hubs had not 'substantially increased' since the last financial year, but did
not provide any supporting statistics.[13]
However, available services were extended and 'considerable work' was undertaken
to 'modernise the underlying [Enterprise Resource Planning systems]'.[14]
The committee notes that the department's previous annual report recorded that 24
agencies were engaged with the hubs in 2017–18, and set a target to have 60
agencies engaged by 30 June 2020.[15]
2.12
In accordance with Finance's target to increase the efficiency of its
corporate service functions, in 2018–19 the department identified five hubs
with bases which will not be supported from 2025 and will therefore be subject
to maintenance premiums.[16]
Consequently, the annual report noted that the department assessed alternative
solutions, but did not discuss what these solutions were.[17]
2.13
The department also reported that its hubs will begin investing once
they move to a new Enterprise Resource Planning system, which will allow them
to share assets and avoid costs involved with 'investing separately for the
same capability'.[18]
The committee looks forward to assessing the progress of Finance's corporate
service functions in its next annual report.
Participation in the Data Integration Partnership for Australia
2.14
Finance indicated that it had 'substantially achieved' its performance
criterion to support the department's 'participation in the Data Integration
Partnership for Australia' and contribution to increasing 'Commonwealth public
sector analytics capability and use of data to inform public policy'.[19]
The corporate plan provided that this criterion would be assessed against
'evidence of improved ability to share data between Commonwealth entities' and
'evidence of data analytics contributing to public sector reform'.[20]
2.15
The results and analyses of this criterion in the annual report's annual
performance statement showed that Finance worked towards achieving these
targets by delivering its prototype Government Protected Data Exchange (GovPDX)
solution.[21]
The department also established a Government Business Analytical Unit (GBAU)
to trial the GovPDX, and prepared for the integration of other agencies and datasets
from 1 January 2020.[22]
The GBAU demonstrated the platform's capacity to develop longer-term workforce
strategies and identify opportunities to optimise capability development
through inter-agency staff movement by mapping approximately
50 000 promotions and transfers of staff over a five year period.[23]
2.16
As the pilot was still being trialled during the reporting period, it
could not be wholly assessed against the corporate plan, which relies on the
pilot's completion in order to measure drivers of productivity and efficiency.[24]
The committee notes that the dataset was only available to the Secretaries
Australian Public Service Reform Committee[25]
and looks forward to considering the progress of the GovPDX solution and
Finance's broader participation in the Data Integration Partnership for
Australia in the department's next annual report.
Access to GovTeams
2.17
In 2018–19, Finance 'substantially achieved' its performance criterion to
provide Commonwealth entities and companies with access to GovTEAMS, which aims
to create a 'single environment for both internal and external collaboration
across government to improve public sector productivity'.[26]
The corporate plan provided that this criterion would be assessed through the
platform's successful operations, user adoption rates and the migration of
existing Govdex users.[27]
2.18
According to the results and analyses of this criterion in the annual
report's annual performance statements, Finance met its target to successfully
migrate existing Govdex users as to GovTEAMS.[28]
However, the department also reported that the platform had 19 500
registered users by the end of the reporting period,[29]
compared to a target of 30 000 set out in the corporate plan.[30]
2.19
Although the annual report noted that GovTEAMS successfully performed
'in a resource constrained and dynamic environment', the department did not meet
its expected productivity gains, which reached $6.6 million compared to an
expected $6.9 million.[31]
The annual report did not comment on which entities and companies had access to
the platform. The committee looks forward to considering the progress of
GovTEAMS in the department's next annual report.
Improving the administration of
parliamentary work expenses
2.20
During 2018–19, Finance continued to work towards improving its capacity
to achieve its performance criterion relating to 'the timeliness, efficiency,
clarity and transparency of the administration of parliamentary work expenses'.[32]
The corporate plan provided that this criterion would be assessed against the
new system being 'developed to deliver parliamentary expenses and service'.[33]
As the system had not been fully rolled out, this criterion was recorded as
'substantially achieved' the annual report.[34]
2.21
The corporate plan noted that the system's progress is 'measured
continuously and reported annually from quarterly progress reports provided to
the Executive Board'.[35]
The results and analyses of this criterion in the performance statement in the
annual report stated that the Parliamentary Expenses Management System (PEMS) Portal
was launched in July 2018, with additional functions introduced over the
following five months.[36]
PEMS will continue to be implemented in stages 'to assist with the transition
and to meet stakeholder expectations'.[37]
2.22
The final stage of PEMS is scheduled for delivery in mid-2020 and will
streamline a range of financial operations for parliamentarians and their
offices such as processing expenses, payroll and budget management.[38]
The online system will also improve reporting and self-service functions.[39]
Financial statements
2.23
Finance's financial statements were prepared as required by section 42 of
the PGPA Act and section 17AD of the PGPA Rule. The independent auditor from
the Australian National Audit Office (ANAO) noted three key matters that were
significant in his audit of the department's financial statements:
-
valuation of the liability for outstanding insurance claims—the
balance was found to be significant when compared to Finance's Statement of
Financial Position ($473.7 million as at 30 June 2019);
-
valuation of superannuation provisions—the balance was found to
be significant when compared to Finance's Administered Schedule of Assets and
Liabilities ($233.1 billion as at 30 June 2019); and
-
valuation of properties—the valuation of Finance's land,
buildings and investment properties was 'dependent on assumptions that require
significant management judgment about capitalisation rates, fair market rents,
discount rates and conditions of the use of properties'.[40]
2.24
Finance reported an operating surplus of $16.5 million in 2018–19,
which was assisted by 'favourable gains in the Commonwealth's domestic property
portfolio'.[41]
However, this amount was significantly lower than the $126.9 million
surplus recorded in the previous financial year due to the number of Comcover
insurance claims received during the reporting period.[42]
2.25
In 2018–19, Finance administered four programs on behalf of the
Australian government, totalling $11.7 billion in expenses.[43]
A further breakdown of administered expenditure included:
-
member benefits for Commonwealth defined benefit superannuation
schemes—$8.4 billion;
-
investment funds—$2.6 billion; and
-
ministerial and parliamentary services—$0.6 billion.[44]
The annual report did
not specify which program the remaining $0.1 billion in expenditure
financed.
2.26
In 2018–19, administered assets increased by 25.2 per cent (primarily
due to government contributions) and amounted to $41 billion.[45]
Adjustments to the discount rate used to value superannuation liabilities
resulted in a $50 billion increase from the previous financial year to
total $235.5 billion.[46]
The department also received $2.6 billion in administered income, which
included $1.2 billion of superannuation contributions and
$1.3 billion of interest, dividends and distribution and gains from
investment funds.[47]
Committee view
2.27
The committee found Finance's annual report to be well-presented and
informative. The report met each of its requirements under the relevant
legislation. For the purposes of its report to the Senate, the committee
considers the department's annual report to be 'apparently satisfactory'.
Department of the Prime Minister and Cabinet
2.28
The Department of the Prime Minister and Cabinet (DPM&C) provides
advice and support to the Prime Minister, the Cabinet and portfolio ministers
to coordinate the development and implementation of government policies.[48]
In 2018–19, the department reported to the following Ministers:
-
the Hon Scott Morrison MP, Prime Minister and Minister for the
Public Service;
-
Senator the Hon Marise Payne, Minister for Women;
-
the Hon Ken Wyatt AM MP, Minister for Indigenous Australians;
-
the Hon Greg Hunt MP, Minister Assisting the Prime Minister for the
Public Service and Cabinet; and
-
the Hon Ben Morton MP, Assistant Minister to the Prime Minister
and Cabinet.[49]
2.29
DPM&C's Annual Report 2018–19 was tabled in the House of
Representatives on 17 October 2019 and the Senate on
11 November 2019.[50]
2.30
In accordance with subsection 35(1) and section 16E of the PGPA Act, DPM&C's
2018-22 corporate plan is available for review on its website. The corporate
plan and annual report recorded DPM&C's three core purposes as being to
support the Prime Minister, the Cabinet and portfolio ministers; to 'provide
advice on major domestic policy, national security and international matters'
and; to 'improve the lives of Indigenous Australians'.[51]
Compliance
2.31
DPM&C prepared its annual report under the requirements of the PGPA
Act, the PGPA Rule, as well as in accordance with RMG No. 135.[52]
In addition, the department is also required to provide information required by
the Work Health and Safety Act 2011, the Environment Protection
and Biodiversity Conservation Act 1999 and the Commonwealth
Electoral Act 1918.[53]
The committee found the department's annual report to be compliant in each of
its reporting requirements.
Performance
2.32
DPM&C's 2018–19 annual report assessed its performance against five
performance criteria set by the 2018–22 corporate plan and ten criteria
prescribed by the PBS.[54]
The committee found the department's annual performance statement to be well
structured and informative.
2.33
The annual performance statement mapped each performance criterion
against the department's three core purposes. The results for each performance
criterion were accompanied by case studies, which detailed the department's
activities, and demonstrated the extent to which DPM&C tangibly achieved
its performance targets. The committee found the use of case studies to greatly
assist its assessment of the department's overall performance.
2.34
DPM&C achieved targets for 11 of its 15 performance criteria and
substantially achieved targets for the remaining four (Criterion 2.2, 3.1, 3.4
and 3.6).[55]
Stop violence against women and
increase economic security (Criterion 2.2)
2.35
DPM&C partially met its target for Criterion 2.2 under its second
purpose—providing advice. The department reported its efforts to meet this
target were supported by the delivery of the Commonwealth's contribution to the
Fourth Action Plan of the National Plan to Reduce Violence against Women and
their Children 2010–22 as well as the Women's Economic Security Statement,
driven by the Office for Women. The target was not completely achieved due to a
failure to meet the target for the timeliness of advice, with only
78 per cent of advice provided in a timely manner against its
85 percent target.[56]
Accelerate economic and education opportunities for
Aboriginal and Torres Strait Islander peoples (Criterion 3.1)
2.36
Three of the eight performance criteria under DPM&C's third
purpose—improving the lives of Indigenous Australians—did not meet their
relevant nominated targets. The annual report listed three target measures for Criterion
3.1:
-
for the Australian government to rely on the department's advice;
-
to provide timely, high quality advice; and
-
for stakeholders to capitalise on the department's perspective to
best deliver priorities.[57]
2.37
Although this criterion was recorded as being 'substantially achieved', analysis
for this criterion reported that the department achieved '88 per cent
against a target of 85 per cent for timeliness of advice', but it did
not comment on how DPM&C met or failed to meet the other two targets.[58]
Indigenous Advancement Strategy activities contribute towards reduced
levels of offending, violence and substance abuse (Criterion 3.4)
2.38
Sixty-eight per cent of activities contributing towards
reduced levels of offending, violence and substance abuse under the Indigenous
Advancement Strategy funded by DPM&C achieved their primary outcome
performance indicators for Criterion 3.4, compared to a target of
70 per cent.[59]
The annual report summarised the impacts of the department's work in accordance
with this criterion in a case study of the Youth Through-Care Model,
which assists Aboriginal and Torres Strait Islander young people to leave
detention and return to their families without reoffending.[60]
2.39
DPM&C worked closely with young offenders, indigenous organisations,
indigenous communities and Elders, existing service providers, as well as
government entities and justice agencies across the Northern Territory,
Queensland and Victoria to develop a 'culturally competent approach' to the model.[61]
The Indigenous Affairs Minister committed $10.6 million over three years
to 2019–20 for the model's design, trial and evaluation, which entered its
implementation phase in April 2019 after receiving endorsement from key
partners and stakeholders.[62]
A two year trial of the model is due to conclude in June 2021 and is
monitored by 'appropriate feedback mechanisms' cleared by the Institute of
Aboriginal and Torres Strait Islander Studies.[63]
Indigenous Advancement Strategy
activities invest in local solutions (Criterion 3.6)
2.40
Sixty-seven per cent of activities investing in local
solutions under the Indigenous Advancement Strategy funded by DPM&C achieved
their primary outcome target for Criterion 3.6, compared to a target of
70 per cent.[64]
The annual report summarised the impacts of the department's work in accordance
with this criterion in a case study of place-based practice in Yarrabah, which aims
to support the development of 'in-depth knowledge and understanding of the
place' and build 'connections and relationships within the community'.[65]
2.41
DPM&C also supported the Yarrabah Leaders Forum (YLF), a 'local
decision-making group' to ensure that the department's engagement and
investments 'are gauged to complement the community's priorities'.[66]
The department worked closely with the YLF, key leaders and service providers
to respond to the community's needs. This engagement led to the local
implementation of the Remote School Attendance Strategy, which commenced in
Term 4 2018 with the aim to increase attendance rates of children at remote
schools in the region.[67]
Financial statements
2.42
DPM&C's annual report included financial statements for the
department and the Aboriginals Benefit Account (ABA). Both statements received
unqualified assurance reports from the ANAO.
Department of Prime Minister and
Cabinet
2.43
DPM&C's financial statements were prepared as required by section 42
of the PGPA Act and section 17AD of the PGPA Rule. In 2018–19, the department
administered seven programs on behalf of the Australian government during the
reporting period, amounting to $1705.6 million, which primarily comprised grant
payments ($1281.9 million).[68]
A further breakdown of administered expenditure included:
-
Indigenous Affairs programs—$1576 million;
-
corporate Commonwealth entities and companies—$111.1 million; and
-
support and coordination of government activities—$18.5 million,
including $4.8 million for the Office for Women.[69]
2.44
Administered assets decreased from $5288.1 million in 2017–18[70]
to $3619.7 million in 2018–19 due to the move of the Aboriginal and Torres
Strait Islander Land Account and Sea Future Fund into the Finance portfolio.[71]
2.45
The department also reported an operating deficit of $26.9 million for
2018–19, which was revised as an operating surplus of $0.3 million after
adjustments.[72]
Departmental expenses amounted to $455.5 million in 2018–19, which primarily
comprised of employee benefits, supplier costs, depreciation and amortisation,[73]
compared to $473.4 million in 2017–18.[74]
The department explained that the decrease in expenses was the result of ceased
taskforces and reduced contractor costs.[75]
Aboriginals Benefit Account
2.46
ABA's financial statements were prepared in accordance with section 64B
of the Aboriginal Land Rights (Northern Territory) Act 1976, which
requires financial statements to be prepared as per section 42 of the PGPA Act.[76]
The Minister for Finance exempted the ABA from sections 9, 32 and 33 of the Public
Governance, Performance and Accountability (Financial Reporting) Rule 2015 owing
to its status as a special account for the purposes of the PGPA Act. This
exemption will stand for the duration the account maintains its current
practice and has no additional appropriation transactions and balance.[77]
The account is overseen by the Minister for Indigenous Affairs, the Hon Ken
Wyatt AM MP.
2.47
Appendix A of DPM&C's annual report detailed ABA's financial
performance.[78]
Total income for the ABA increased from $364 million in 2017–18 to $457 million
in 2018–19, while expenses also increased from $183 million in
2017–18 to $208 million in 2018–19.[79]
The ABA reported that these results reflected 'positive market conditions such
as commodity prices, exchange rates and world demand', which therefore improved
royalty receipts and the account's overall financial position.[80]
Other matters
2.48
In September 2018, Comcare issued DPM&C with an improvement notice
to address a number of psychological workplace health and safety risks.[81]
The department responded quickly and complied with all directions within one
month of receiving the notice.[82]
Shortly after, DPM&C launched its Workplace Health and Safety Commitment
statement, which reaffirmed its commitment to building a safe and healthy
workplace.[83]
In 2018–19, the department also launched an online training program to improve
employees' understanding of mental health issues and delivered several
campaigns to increase participation in wellbeing initiatives such as National
Safe Work Month and Mental Health Awareness week.[84]
2.49
DPM&C's annual report also discussed the performance of the ABA (in
Appendix A) and the Registrar of Indigenous Corporations (in Appendix B). The
appendices provided a useful summary of each entity's activities during the
reporting period, including statistics on revenue, expenditure and staffing.
Committee view
2.50
The committee found DPM&C's annual report to be well-structure,
well-presented and informative. The report met each of its requirements under
the relevant legislation. For the purposes of its report to the Senate, the
committee considers the DPM&C's annual report to be 'apparently
satisfactory'.
Indigenous Business Australia
2.51
Indigenous Business Australia (IBA) is a corporate Commonwealth entity
established under the Aboriginal and Torres Strait Islander Act 2005 (ATSI
Act) as part of the Prime Minister and Cabinet portfolio (PM&C portfolio).
In 2018–19, the IBA reported to the Minister for Indigenous Australians, the
Hon Ken Wyatt AM MP.
2.52
IBA's Annual Report 2018–19 was tabled in the House of
Representatives on 21 October 2019 and in the Senate on
11 November 2019.[85]
In accordance with subsection 35(1) and section 16E of the PGPA Act, IBA
published its 2018–19 corporate plan on its website on 31 August 2018.
2.53
IBA's core mission is to 'assist and enhance Aboriginal and Torres
Strait Islander self-management and economic self-sufficiency, and to advance
the commercial and economic interests of Aboriginal and Torres Strait Islander
people' by investing in 'people, places and ideas'.[86]
Compliance
2.54
IBA prepared its annual report under the requirements of the PGPA Act, PGPA
Rule and the ATSI Act,[87]
as well as in accordance with RMG No. 136. In addition, the agency was also
required to provide information pursuant to the Work Health and Safety
Act 2011, the Environment Protection and Biodiversity Conservation
Act 1999 and the Commonwealth Electoral Act 1918.[88]
The committee found IBA's annual report to be compliant in each of its
reporting requirements.
Performance
2.55
IBA has one portfolio outcome to improve 'wealth acquisition to support
the economic independence of Aboriginal and Torres Strait Islander people through
commercial enterprise, asset acquisition and access to concessional business
and home finance'.[89]
This outcome is supported by the IBA's functions as prescribed by the ATSI Act:
-
to engage in commercial
activities;
-
to promote and encourage
Aboriginal and Torres Strait Islander self-management and economic
self-sufficiency; and
-
such other functions as are
conferred by the [ATSI].[90]
2.56
IBA fulfilled its functions and delivered services according to its
portfolio outcome during the 2018–19 reporting period through activities
facilitated by its Housing, Business and Investment and Asset Management
divisions.[91]
2.57
In 2018–19, IBA's Housing Solutions program made 'home ownership a
reality for 688 Indigenous families', including 77 remote
or very remote families.[92]
Of the 312 home loans provided during the reporting period, 96 per cent
assisted first home buyers and 93 per cent assisted low income
earners.[93]
2.58
IBA's Business Solutions team approved 343 instances of
business finance for 206 customers with total commitments of $48 million
during the financial year.[94]
These results reflected a small decrease when compared to the previous
reporting period, which recorded 363 instances of finance
($51.1 million).[95]
The 2018–19 annual report did not outline reasons for this variation. IBA also
provided 70 start-up finance packages ($5.1 million)[96];
ten more than recorded in the previous reporting period.[97]
2.59
In addition to loans and grants, IBA connected with its customers and
stakeholders by facilitating 79 workshops and providing 639 business
supports to assist customers build their business capabilities.[98]
IBA also held its first youth conference, Futures Forum, for young Aboriginal
and Torres Strait Islander leaders and established the Strong Women Strong
Business online mentoring network, which connected 1300 Indigenous
business women.[99]
2.60
In 2018–19, IBA's Investment and Asset Management Program continued to
support 'Indigenous Australians to accumulate wealth, develop their capacity to
participate in Australia's economy, create jobs, increase training and skills
development, and supply goods and services' across a variety of sectors and
locations.[100]
Products such as IBA's Investment and Asset Management Trust and the Indigenous
Prosperity Fund improved accessibility for Aboriginal and Torres Strait
Islander groups to access investment opportunities.[101]
IBA also generated a 7.7 per cent financial return for its indigenous
partners and investors.[102]
2.61
IBA's 2018–19 annual report clearly outlined its key performance
indicators, enabling the reader to measure and assess its performance against
the corporate plan. IBA met 11 of its 13 performance indicators,
but failed to achieve its portfolio value of business finance products target.[103]
IBA partially met its indicator relating to the survivability of indigenous
businesses as only 54 per cent of businesses with one to four
employees met or exceeded the survival rate compared to its target of 69 per cent.[104]
Financial statements
2.62
IBA's annual report included financial statements, which were prepared
as required by section 42 of the PGPA Act, and in accordance with section
17AD of the PGPA Rule and Australian Accounting Standards—Reduced Disclosure
Requirements.[105]
The financial statements received an unqualified assurance report from the
ANAO.
2.63
IBA is primarily funded by grants and appropriation revenue from the
Commonwealth as well as its own self-generated revenue.[106]
In 2018–19, IBA lent and invested more than $320 million through its 'home,
business and investment products and services'.[107]
Despite income decreasing by $13.4 million, IBA achieved a
$43 million consolidated statutory surplus.[108]
IBA explains that decreased income was predominantly the result of the Business
Development Program Northern Territory Grant ($3 million) and the
Performance Bond Trust ($10 million) being recognised in the statements
for the previous financial year.[109]
2.64
IBA's annual report delivered a useful overview of the agency's
financial performance. It also provided clear commentary for significant
variances between its original budget estimates and actual financial results,
which mainly pertained to changes to its accounting policy.[110]
Committee view
2.65
The committee found the IBA annual report to be well-structure, well-presented
and informative. The report met each of its requirements under the relevant
legislation. For the purposes of its report to the Senate, the committee
considers the IBA annual report to be 'apparently satisfactory'.
National Australia Day Council
2.66
The National Australia Day Council (NADC) is a Commonwealth company[111]
incorporated under the Corporations Act 2001. As part of the
PM&C portfolio, the NADC reported to the Assistant Minister to the Prime
Minister in 2018–19.[112]
The Assistant Ministers during the reporting period were:
-
Senator the Hon James McGrath (from 1 July 2018 to
28 August 2018);
-
the Hon Steve Irons MP (from 28 August 2019 to 29 May 2019);
and
-
the Hon Ben Morton MP (from 29 May 2019).
2.67
The NADC's Annual Report 2018–19 was tabled in both Houses of
Parliament on 14 October 2019.[113]
In accordance with section 95 of the PGPA Act, the NADC also published a corporate
plan on its website. The corporate plan for the 2018–19 reporting period
was the National Australia Day Council Corporate Plan 2019–22, which
was published on 31 August 2018.[114]
2.68
The core mission of the NADC, as described in its annual report, is to
'help build national pride and unity', achieving this mission through its
coordination of Australia Day events and the Australian of the Year Awards.[115]
Compliance
2.69
As outlined in Chapter 1 of this report, Commonwealth agencies and
companies report under the enhanced Commonwealth performance framework. The
committee commented on the NADC's utilisation of the enhanced Commonwealth
performance framework in its previous Report on Annual Reports No. 1
and No. 2, which tabled in July 2019.
2.70
Under this framework the NADC is not obliged to prepare annual
performance statements; however it is required to publish a corporate plan,
which is available online.[116]
The committee notes that no previous corporate plans for the NADC are available
to view online.[117]
This makes it difficult for the committee and interested persons to compare
performance and corporate direction over periods and to holistically assess the
company within the enhanced Commonwealth performance framework. The committee
highlights its preference that Commonwealth entities and companies maintain
past corporate plans on their websites to assist in accounting for the
long-term performance of a Commonwealth body.
2.71
In addition, the NADC provided minimal discussion about its corporate
plan in the annual report. Without the requirement to prepare and provide
annual performance statements, it is in the discretion of Commonwealth
companies to report on performance measured against key performance indicators
as described in their corporate plan.
2.72
As a Commonwealth-controlled company, the NADC prepares its annual
report consistent with the requirements of the Corporations Act 2001,
PGPA Act, PGPA Rule, Work Health and Safety Act 2011 and Environment
Protection and Biodiversity Conservation Act 1999.[118]
The NADC should also utilise RMG No. 137 to compile its report. The committee
found NADC's annual report to be broadly compliant in each of its reporting
requirements. The report also included a statement on risk management for the
safety of employees of the NADC.[119]
Performance
2.73
The NADC's performance drivers in its 2019–22 corporate plan
included:
-
maintaining awareness of the Australian of the Year Awards at
51 per cent;
-
achieving one million viewers for the broadcast of Australian of
the Year Awards;
-
securing $5 million per annum in partnerships;
-
increasing nominations for the Australian of the Year awards by
ten per cent each year;
-
increasing the participation rate in Australia Day activities to
60 per cent; and
-
increasing national pride.[120]
2.74
While the annual report recorded results for four of these six metrics,[121]
they were not labelled as performance drivers nor mapped against the corporate
plan. In order to work effectively within the cyclical nature of the enhanced
Commonwealth performance framework, the committee suggests that future annual
reports clearly identify which performance drivers have been measured and
assessed against its corporate plan.
2.75
Of the metrics stated in the annual report, the NADC achieved a
seven per cent increase in awareness of the 2019 Australian of the
Year Awards, assisted by a 65 per cent increase in the Award's media presence
since 2018.[122]
The number of nominations for the Australian of the Year remained constant (at
3000) between this reporting period and the previous reporting period.[123]
The percentage of Australians who said they feel an increased sense of pride
because of Australia Day declined by five per cent, while
participation in Australia Day activities declined by one per cent.
Financial statements
2.76
NADC's annual report included financial statements as required by
section 42 of the PGPA Act, and received an unqualified report from the ANAO.[124]
2.77
The main sources of revenue for the NADC come from government grants provided
by the DPM&C and corporate sponsorship.[125]
In 2018–19, the NADC reported an operating profit of $7907 and retained earnings
of $798 069.[126]
These financial results followed an operating loss of $346 356 in
the 2017–18.[127]
The report did not comment on how the NADC resolved its operating loss from the
previous reporting period.
2.78
The NADC's current and non-current assets depreciated by approximately 43 per cent
during the reporting period (valued at $2.6 million in 2017–18 and
$1.1 million in 2018–19).[128]
This follows an appreciation of approximately nine per cent in 2017–18.[129]
The attached notes to the financial statements do not provide further detail to
explain the context for this significant variation. For future reports, it
would assist the committee if the NADC provided more information regarding noteworthy
variations in its financial statements.
Committee view
2.79
Notwithstanding suggestions for future reports, the committee found the
NADC annual report to be well-presented and informative. The report met each of
its requirements under the relevant legislation. For the purposes of its report
to the Senate, the committee considers the NADC annual report to be 'apparently
satisfactory'.
North Queensland Livestock Industry Recovery Agency
2.80
The NQLIRA is a non-corporate Commonwealth entity and executive agency,
which was established on 21 February 2019 under the Public Service
Act 1999[130]
to 'provide strategic leadership and coordination for the Commonwealth's
recovery and reconstruction activities in ... flood affected areas ... following
the North and Far North Queensland Monsoon Trough'.[131]
2.81
The NQLIRA's first annual report, Annual Report 2018–19, was
tabled
in the House of Representatives on 24 October 2019 and the Senate on 11 November 2019.[132]
2.82
In addition, the NQLIRA published a corporate plan in accordance with
subsection 35(1) and section 16E of the PGPA Act for the period covering
2019–20 to 2022–23 on 21 October 2019, which outlined its
performance expectations and targets by which performance of the agency is
measured.[133]
The committee looks forward to evaluating the NQLIRA's performance as per the
corporate plan after the next reporting period.
2.83
All staff other than the Chief Executive Officer and Chairman, the Hon
Shane Stone AC QC, were seconded from a variety Commonwealth agencies and based
in Canberra for the reporting period.[134]
These staff remained employees of their home Commonwealth agency and will be
transitioned to the NQLIRA once it receives appropriation from the Appropriation
Act (No. 1) 2019–20.[135]
At the time of reporting the Act had not passed Parliament.
2.84
To allow time to negotiate and implement an enterprise agreement, the
NQLIRA prepared a determination under section 24(1) of the Public Service
Act 1999. There were no staff employed under this determination for
the reporting period.[136]
Compliance
2.85
As a non-corporate Commonwealth entity and executive agency, the NQLIRA was
required to prepare its annual report under the requirements of the PGPA Act,
the PGPA Rule, as well as in accordance with the RMG No. 135.[137]
In addition, the NQLIRA was also required to provide information required by
the Work Health and Safety Act 2011, the Environment Protection
and Biodiversity Conservation Act 1999 and the Commonwealth
Electoral Act 1918.[138]
2.86
The committee found the NQLIRA's annual report to be compliant with most
of its reporting obligations under the prescribing legislation. However, several
requirements belonging to sections 17AG (2)—(4) and (6)—(10) of the PGPA Rule were
deferred to DPM&C for reporting. The committee looks forward to considering
the agency's performance against these requirements in its next annual report.
Performance
2.87
As the NQLIRA operated as a taskforce within DPM&C during the
reporting period, its annual performance statements were included in the DPM&C's
annual report. The committee looks forward to reading the NQLIRA's annual
performance statements in its 2019-20 annual report in accordance with
paragraph 39(1)(a) of the PGPA Act.
2.88
In its first four months of operation the NQLIRA worked quickly to
deliver support to affected communities. Some of the agency's key achievements
included:
-
building 'working relationships with affected communities,
primary producers, states and local governments to raise awareness of the
immediate support available and to gather invaluable information to shape the
short and longer term response'; and
-
coordinating meetings with the Mayors of the eleven affected
local government agencies.[139]
2.89
The NQLIRA also facilitated the following financial assistance payments:
-
Special Disaster Assistance Recovery Grants—$80 million
($9 million to small businesses and not-for-profits);
-
Restocking, Replanting and On-farm Infrastructure
Grants—$300 million;
-
Disaster Recovery Payment and Disaster Recovery Allowance—$100 million;
-
Disaster Recovery Funding Arrangements—$121 million to the
Queensland Government;
-
Independent schools with students from flood affected
areas—$4 million;
-
AgRebuild Loans through the Regional Investment Corporation; and
-
$2.6 million to support the mental health of affected
communities.[140]
Financial statements
2.90
NQLIRA's annual report included financial statements as required by
section 42 of the PGPA Act and section 17AD of the PGPA Rule. These
financial statements received an unqualified audit opinion from the ANAO.[141]
Given that the 2018–19 financial year was the first of operation for the
NQLIRA, financial performance was compared to budgeted expenditure rather than
previous expenditure.
2.91
The establishment of the NQLIRA and its operating activities were funded
by DPM&C[142]
as it did not receive a direct budgetary appropriation during its first four
months of operation (the reporting period).[143]
A taskforce within DPM&C coordinated staffing and provided resources totalling
$2.36 million.[144]
The agency reported a deficit of approximately $19 000 for the
reporting period, which was the result of unbudgeted employee benefits.[145]
Committee view
2.92
The committee found the NQLIRA's annual report to be informative and
well-presented. However, the report bore minor typographical and pagination
errors throughout. Overall, the committee found the NQLIRA's annual report to
be 'apparently satisfactory' in its reporting obligations.
Senator James Paterson
Chair
Navigation: Previous Page | Contents | Next Page