2.1
Senate Standing Order 25(20)(b) provides for the committee to consider selected reports in more detail. Annual reports of the following entities were selected for this report:
Australian Electoral Commission—Report for 2019–20;
National Indigenous Australians Agency—Report for 2019–20; and
Northern Land Council––Report for 2018–19.
Australian Electoral Commission
2.2
The Australian Electoral Commission (AEC) is an independent statutory authority operating within the Finance portfolio and responsible for administering the Commonwealth Electoral Act 1918 (Electoral Act).
Compliance
2.3
The AEC's annual report for 2019–20 was submitted to the Assistant Minister for Finance, Charities and Electoral Matters, Senator the Hon Zed Seselja, on 30 September 2020 and tabled on 19 October 2020 in the House of Representatives and on 9 November 2020 in the Senate.
2.4
The annual report was prepared in accordance with the purposes of section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and section 17 of the Electoral Act. The report presented information which was relevant, reliable, concise, clear and balanced and included accurate aids to access. The committee found the annual report to be compliant with each of its reporting requirements.
2.5
The committee notes the following matters relating to external scrutiny and the management of human resources discussed in the AEC's annual report.
External scrutiny
2.6
Subsection 17AG(3) of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) requires annual reports to include information on the most significant developments during the period of external scrutiny for
non-corporate Commonwealth entities. The AEC noted the following developments during 2019–20 in respect of external scrutiny.
Federal Court
2.7
The AEC reported on the particulars of judicial decisions made during the reporting period that have had or may have a significant effect on its operations, as required by paragraph 17AG(3)(a) of the PGPA Rule.
2.8
The annual report recorded that three petitions were lodged in the Federal Court following the 2019 federal election:
Garbett v Liu [2019] 375 ALR 117;
Staindl v Frydenberg [2020] 376 ALR 226.
2.9
Garbett v Liu [2019] 375 ALR 117 and Yates v Frydenberg alleged a breach of subsection 329(1) of the Electoral Act 'by similar advertising in the divisions of Chisholm and Kooyong'. The AEC reported that:
The electoral advertising [was] corflute signs in the Mandarin language that were placed in close proximity to AEC signage in a similar purple colour to that used by the AEC. While both petitions were dismissed, the Federal Court did find the corflute signs were misleading or deceptive when:
placed adjacent to AEC signs purporting to be a sign of, and convey a message from, the AEC rather than the political party responsible for the sign
the statement or message on the sign stating that putting a particular political party first is the ‘correct’ or ‘right’ way to vote implied that the only way to cast a valid vote was to vote for that party.
2.10
Staindl v Frydenberg [2020] 376 ALR 226 alleged the ineligibility of the elected candidate in the division of Kooyong under the Constitution. As matters relating to the Australian Constitution are administered by the
Attorney-General's Department, the AEC was not a party to this petition, which was later dismissed.
Australian Human Rights Commission
2.11
The annual report noted that four complaints about the AEC were lodged with the Australian Human Rights Commission in 2019–20. Three complaints were terminated, and one matter remained ongoing at the end of the reporting period. Two disability complaints lodged during 2018–19 were finalised in 2019–20. One complaint was terminated by the Australian Human Rights Commission and the other was resolved by the AEC.
Parliamentary committees
2.12
Paragraph 17AG(3)(b) requires entities to report on the particulars of any report on the operations of the entity given during the period by a parliamentary committee.
2.13
In 2019–20, the AEC provided information on 'electoral management and the delivery of electoral services' to four parliamentary committee inquiries, made eight public submissions and attended one public hearing. The AEC also participated in the Senate estimates process.
Customer scrutiny
2.14
The AEC received 1072 complaints regarding electoral communication during the 2019 federal election. The AEC reported that they:
… provided advice on 544 of these enquiries and complaints, and investigated 528 electoral communications. Where breaches were identified, the AEC issued 78 warnings and took further action on 11 matters.
2.15
The AEC investigated 109 electoral communications distributed on social media, with 25 being found to breach section 321D of the Electoral Act and three being in breach of section 329. The AEC also investigated 233 electoral communications dispersed through signs and print media, with 47 breaching section 321D and three breaching section 329.
Management of human resources
2.16
Paragraph 17AG(4)(a) of the PGPA Rule stipulates that annual reports must include an assessment of the entity's effectiveness in managing and developing its employees. The AEC made note of its activities during the COVID-19 pandemic.
2.17
The AEC nominated 255 employees (nearly one-third of its total workforce) for secondment to support the Australian Public Service's response to COVID-19 and 'to supplement Services Australia's workforce and support the Government's critical work' and implemented the guidance of the Australian Public Service Commission 'to ensure a COVID-safe transition for employees coming back to the workplace'.
2.18
In 2019–20, the AEC's National Training and Education Unit launched the Learning and Professional Development Strategy 2020–2025 to guide its 'approach and future investment in increasing the AEC workforce's capability and agility', as well as an Electoral Planning and Learning Program to assist staff at the state and divisional levels develop their election operation plans.
2.19
The annual report also noted the AEC's work to design a National Induction Program and Senior Leadership Program for delivery in 2020–21.
Performance
2.20
The AEC has one program (to deliver electoral events) under one portfolio outcome:
Maintain an impartial and independent electoral system for eligible voters through active electoral roll management, efficient delivery of polling services, and targeted education and public awareness programs.
2.21
As indicated by the Portfolio Budget Statements (PBS), the AEC's annual report mapped its performance for 2019–20 against the purpose and directions set by the AEC Corporate Plan 2019–2023. The six directions included:
deliver high quality electoral services;
continue to improve and modernise the delivery model for electoral events;
govern the organisation for quality and assurance;
professionalise the AEC's workforce;
uphold the reputation of the AEC; and
build an agile and responsive organisation.
2.22
The corporate plan set a number of intended results for each direction, which were measured according to corresponding performance criteria. Performance criteria set by the corporate plan met the requirements of section 16EA of the PGPA Rule and were:
mapped to one of the AEC's purposes;
verifiable, using reliable sources of information and methodologies;
practicable and comprised a mix of qualitative and quantitative measures;
descriptive of the AEC's outputs, efficiency and effectiveness in terms of its performance; and
a basis for an assessment of the AEC's performance over time.
2.23
The AEC prepared an annual performance statement in accordance with paragraph 39(1)(b) of the PGPA Act and section 16F of the PGPA Rule, which clearly set out the intended results and performance criteria for each direction. The committee considers that the annual performance statement complies with the requirements set out in Annual performance statements for Commonwealth entities: Resource Management Guide No. 134 and notes the following results across each of the AEC's six agency directions.
2.24
The outcomes for each intended result were recorded as being either 'met', 'on track to be met', 'partly met' or 'not met', and were accompanied by an explanation. Of the eleven intended results, eight were 'met' and three were 'partly met'. The three intended results which were 'partly met' included:
'[h]igh level of confidence in the electoral roll' (intended result 1.2);
'[m]ake available timely and accurate information and services to stakeholders when carrying out their legislative responsibilities and obligations (intended result 1.4); and
'[m]aintain a cycle of continual improvement through the election readiness framework' (intended result 2.1).
Confidence in the electoral roll
2.25
For intended result 1.2, the AEC reported that approximately 38.6 per cent of enrolment transactions were processed using the AEC's online enrolment system, compared to 49.4 per cent in 2018–19. The annual report attributed the decline to the large number of electoral events held during the reporting period.
2.26
Further, analysis for intended result 1.2 noted that the timeliness of enrolment processing was challenged 'by the large volume of enrolment transactions processed in July and August following the 2019 federal election'. The AEC reported that 81.6 per cent of enrolments were processed in five days and 84.4 per cent were processed in 30 days, compared to respective targets of 95 per cent and 99.5 per cent. Further discussion of these results noted that this outcome was 'not unusual following a federal election' where 'processing timeliness is normally restored over the following six months'.
Timely and accurate information
2.27
In relation to intended result 1.4, the AEC Compliance Review Committee's compliance program was delayed due to 'COVID-19 and resources diverted to support election funding claims'.
2.28
In 2019, 22 compliance reviews of political parties and entities with disclosure obligations were approved. In 2020, '23 compliance reviews were approved and eight remained in progress'.
Continual improvement cycle
2.29
With regard to intended result 2.1, the AEC identified four lessons to ensure the continued improvement of reliability and consistency of election delivery following the 2019 federal election. The annual report noted that these lessons and actions would be implemented throughout 2020–21 'to support the planning and delivery of the next federal election'.
Financial statements
2.30
The AEC prepared financial statements in accordance with sections 42 and 43 of the PGPA Act, which received an unqualified assurance opinion from the Australian National Audit Office (ANAO).
2.31
The committee considers that the financial statements comply with the requirements set out in Commonwealth entities financial statements guide: Resource Management Guide No. 125 and notes the following results.
2.32
The AEC reported an operating loss of $21.3 million for the 2019–20 financial year. The financial statements noted that 'expenses were higher than anticipated due to the timing of the 2019 Federal Election and the changes to Australian Accounting Standards Board (AASB) standard 16 Leases'.
The 2019 Federal Election was held in May 2019 resulting in expenditure occurring across two financial years, 2018-19 and 2019-20, while the AEC was only funded for the election in 2018-19.
The Original Budget estimates compiled in April 2019 for Portfolio Budget Statements did not account for the changes resulting from the application of AASB 16. Budget estimate changes occurred in subsequent budget rounds. The AEC is a nationally dispersed organisation with leasehold properties across all States and Territories and as a result of the application of AASB16 Leases, depreciation and amortisation expenses are significantly higher than budget.
…
These two factors have resulted in the AEC incurring a higher than expected operating loss, which has received approval from the Finance Minister.
2.33
The financial statements recorded a net asset position of $101.4 million and showed total assets of $206.3 million and total liabilities of $104.9 million.
2.34
The AEC provided an informative discussion and analysis of its financial performance during 2019–20, along with summary tables of totals in accordance with section 17AF of the PGPA Rule.
2.35
This discussion emphasised the ongoing challenges presented by its funding model, which the AEC explained impacted its capacity to manage 'the increasing complexity of federal elections/by-elections and the ongoing growth in the size of the electoral roll'.
2.36
Additionally, during 2019–20 the AEC:
… supported federal election expenditure from its cash reserves and made substantial operational concessions within its standard operating environment to minimise its operating loss … The AEC continues to work with the Department of Finance on an overarching funding review, which is expected to be completed in 2020–21.
Committee view
2.37
The committee found the AEC's annual report to be informative and
well-presented. For the purposes of its report to the Senate, the committee considers the annual report to be 'apparently satisfactory'.
National Indigenous Australians Agency
2.38
The National Indigenous Australians Agency (NIAA) commenced operation on 1 July 2019, following its establishment by an Executive Order signed by the Governor-General on 29 May 2019. Upon the creation of the NIAA, Indigenous Affairs functions were transferred from the Department of the Prime Minister and Cabinet (DPM&C).
2.39
The NIAA's purpose is stated in its corporate plan:
[The NIAA assists] the Australian Government achieve its objectives in improving the lives of Indigenous Australians by leading the development of the Australian Government’s approach, focusing on place, working in partnership, and effectively delivering programs through the Indigenous Advancement Strategy.
2.40
As part of the Prime Minister and Cabinet portfolio (PM&C portfolio), the NIAA reported to the Minister for Indigenous Affairs, the Hon Ken Wyatt AM MP, in 2019–20.
Compliance
2.41
The NIAA's annual report for 2019–20 was submitted to the Minister for Indigenous Affairs on 14 October 2020 and tabled on 20 October 2020 in the House of Representatives and on 9 November 2020 in the Senate.
2.42
The annual report was prepared in accordance with the purposes of section 46 of the PGPA Act. The report presented information which was relevant, reliable, concise, clear and balanced and included accurate aids to access. The committee found the annual report to be compliant with each of its reporting requirements.
2.43
The committee notes the following matters relating to external scrutiny, the management of human resources and purchasing discussed in the NIAA's annual report.
External scrutiny
2.44
The NIAA noted the following developments during 2019–20 in respect of external scrutiny.
Reports by the Auditor-General
2.45
In accordance with subparagraph 17AG(3)(b)(i) of the PGPA Rule, the NIAA reported on any report on the operations of the entity given during 2019–20 by the Auditor-General, other than a report under section 43 of the PGPA Act.
2.46
The annual report recorded that the NIAA participated in two ANAO cross entities performance audits tabled 2019–20:
Aboriginal and Torres Strait Islander Participation Targets in Major Procurements (tabled on 20 February 2020).
Aboriginal and Torres Strait Islander Participation Targets in Intergovernmental Agreements (tabled on 23 April 2020).
Management of human resources
2.47
In the assessment of the NIAA's effectiveness in managing and developing employees to achieve its objectives, the annual report noted the NIAA's commitment to continuous learning and development through the Footprints cross-cultural learning program.
2.48
The program supports NIAA staff 'to achieve a minimum level of learning in a 12 month cycle' and acquire 'cross-cultural proficiency that strengthens … efforts to improve the lives of Aboriginal and Torres Strait Islander peoples'.
2.49
The annual report summarised that:
Footprints’ flexible approach to learning has proven successful with more than 3000 instances of completed activities across more than 100 diverse learning activities. Staff choose their own activities and learning styles to address their individual learning needs, business priorities, and areas of interest that meet the program’s learning outcomes.
Purchasing
2.50
Subsection 17AG(6) of the PGPA Rule requires annual reports to include an assessment of the entity's performance during the period against the Commonwealth Procurement Rules.
2.51
The annual report stated that the Commonwealth Procurement Rules were 'applied to the NIAA's procurement activities through the Accountable Authority Instructions and supporting operational guidelines and procurement framework'. Procurements are additionally 'supported by … centralised advice on all procurement matters provided by the [DPM&C] under a shared services arrangement' to ensure that 'the NIAA undertakes competitive, non-discriminatory procurement processes'.
2.52
In 2019–20, the NIAA paid 96 per cent of procurement invoices within required timeframes and awarded 46 contracts to Indigenous businesses, which:
… represents 17 per cent of all NIAA contracts awarded with a value over $10,000. The total estimated value of contracts that NIAA awarded to Indigenous businesses in 2019–20 was $7.1 million, or 21 per cent of total contract value.
Performance
2.53
The NIAA has one portfolio outcome:
Improve results for Indigenous Australians including in relation to school attendance, employment and community safety, through delivering services and programs, and through measures that recognise the special place that Indigenous people hold in this Nation.
2.54
Under this outcome, the NIAA has seven programs:
Program 1.1: Jobs, Land and the Economy;
Program 1.2: Children and Schooling;
Program 1.3: Safety and Wellbeing;
Program 1.4: Culture and Capability;
Program 1.5: Remote Australia Strategies;
Program 1.6: Evaluation and Research; and
Program 1.7: Program Support.
2.55
The NIAA's Corporate Plan 2019–20 set nine activities, which 'reflect the Australian Government's priorities for the reporting period that achieve the [NIAA's] purpose':
Activity 1: Leading the delivery of a new Closing the Gap framework through partnership and engagement with Aboriginal and Torres Strait Islander representatives, and state and territory governments;
Activity 2: Improving mental health and wellbeing outcomes for young Indigenous people;
Activity 3: Progressing co-design of a Voice for Indigenous Australians;
Activity 4: Progressing constitutional recognition of Indigenous Australians during the current parliamentary term, provided there is consensus and a good chance of a referendum succeeding;
Activity 5: Enhancing regional governance and local decision-making;
Activity 6: Supporting early childhood development and wellbeing, school attendance, attainment and improved post school pathways;
Activity 7: Enhancing Indigenous economic rights, including improving employment and pathways to jobs;
Activity 8: Delivering the Indigenous Advancement Strategy (IAS) in partnership with Indigenous Australians; and
Activity 9: Undertaking evaluations on NIAA programs in line with the IAS Evaluation Framework.
2.56
The committee considers that the annual performance statement complies with the requirements set out in Annual performance statements for Commonwealth entities: Resource Management Guide No. 134 and notes the following results across each of the NIAA's activities.
2.57
The corporate plan set a total of 20 performance measures across each of the nine activities. The annual report recorded eight measures as being 'achieved', eight as being 'partially achieved', three as 'not achieved' and one as 'to be achieved in 2020–21'.
2.58
The committee notes one performance measure belonging to each of the following intended activity results were not achieved in 2019–20:
'[t]arget IAS investment and effort to improve Indigenous youth mental health and suicide prevention outcomes in high risk communities that are co-designed with communities, culturally appropriate and linked to other relevant activities' (Activity 2);
'[c]o-design and deliver youth cultural activities aimed at suicide prevention for Indigenous young people in high risk locations' (Activity 2); and
'[s]upport schools and communities to improve attendance in remote and very remote locations' (Activity 6).
Mental Health First Aid workshops
2.59
The NIAA's corporate plan set a target of 50 Mental Health First Aid workshops to be delivered to frontline workers funded under the IAS in
2019–20.
2.60
The annual report recorded that 21 Mental Health First Aid workshops were delivered in 2019–20, and noted that:
… delays were unavoidable due to COVID-19. Of the 50 workshops that were scheduled for delivery to frontline workers:
21 were successfully delivered;
11 were scheduled but postponed due to COVID-19 restrictions; and
18 were in the planning stage, and anticipated to be delivered during the remainder of 2019–20.
Youth cultural activities
2.61
The NIAA's corporate plan set a target for the identification of 12 high risk communities, within which to deliver youth cultural activities 'with community consultation undertaken and co-design process initiated'.
2.62
The annual report noted that this measure was unable to be achieved due to delays caused by the COVID-19 pandemic, and stated:
Minister Wyatt agreed to an implementation approach for the measure, including a list of 12 communities to be announced following community consultation.
Community engagement will commence once COVID-19 restrictions are lifted when it is safe to do so, or via telecommunication if deemed appropriate. Consultation is expected to have begun in all 12 communities by December 2020. Cultural activities in each community will be
co-designed with youth and elders to meet their needs.
The NIAA will appoint a skilled evaluator to work with communities to develop a monitoring and evaluation strategy.
Improving school attendance
2.63
The NIAA's corporate plan set a target to increase average annual attendance in Remote School Attendance Strategy locations.
2.64
The annual report recorded that average attendance fell from 63.6 per cent in 2018 to 61.2 per cent in 2019, but noted that this result was consistent with a broader trend across Australia:
Average attendance at all Australian remote schools fell from 88.3 per cent to 85.8 per cent between 2014 and 2019. In the same period, average attendance at all Australian very remote schools fell from 75.4 per cent to 70.5 per cent. There are a number of factors that impact a child’s ability to attend school, and these are often complex and interconnected. In the first half of 2020, COVID-19 exacerbated these challenges with school closures and pupil-free days.
Financial statements
2.65
NIAA's annual report included financial statements for the NIAA and the Aboriginals Benefit Account, which were prepared in accordance with sections 42 and 43 of the PGPA Act.
2.66
The committee considers that the financial statements comply with the requirements set out in Commonwealth entities financial statements guide: Resource Management Guide No. 125 and notes the following results.
2.67
The NIAA recorded an operating surplus of $0.293 million for 2019–20 (after adjustments), with $1.9 billion in total expenditure and $9.9 million in own source revenue. Actual administered expenses for the IAS, special appropriations, special accounts and other services funded under the Appropriation Act No. 2 amounted to $1665.9 million for 2019–20.
2.68
The financial statements reported a net asset position for 2019–20 of $81.8 million, and showed net departmental assets of $286.9 million and total liabilities of $205.2 million. Net administered assets for the NIAA amounted to $1274.4 million, which were mainly contributed to by the Aboriginals Benefit Account and other special accounts 'through term deposit investments, interest receivable, cash and equivalent balance and right-of-use assets for township leases ... offset by the grants payable on IAS programs'.
Key audit matters
2.69
The auditor noted two key audit matters that were of most significance in the audit of the NIAA's financial statements. These matters related to the:
occurrence of grants expenses; and
existence, completeness and valuation of assets and liabilities transferred from the DPM&C.
2.70
In 2019–20, the NIAA reported administered grants expenses of $1.33 billion. The auditor noted:
… the significant value of transactions involved, their diverse nature and the fact that these grants are delivered across geographically dispersed locations under non-uniform operational and control environments.
2.71
To audit grant expenses, the auditor 'evaluated the design and operating effectiveness of the control framework' and 'examined, on a sample basis, grant approvals and assessments of grantee performance to substantiate grant expenses and compliance with relevant legislation and/or grant agreements'.
2.72
The establishment of the NIAA as an executive agency on 1 July 2019 resulted in the transfer of assets and liabilities associated with its Indigenous Affairs functions from the DPM&C. The NIAA 'received $140.7 million in departmental assets and $66.8 million in departmental liabilities', as well as '$1.125 billion in administered assets and $35.0 million in administered liabilities'.
2.73
As part of the audit, the auditor assessed whether:
'assets and liabilities transferred were recorded in accordance with the agreement' between the NIAA and the DPM&C;
'assets and liabilities were recorded at net book value upon transfer of function'; and
the NIAA's Entity's Restructuring note disclosure accorded with the Public Governance, Performance and Accountability (Financial Reporting Rule) 2015 and the Australian Accounting Standards.
Committee view
2.74
The committee found the NIAA's inaugural annual report to be informative and well-presented. For the purposes of its report to the Senate, the committee consider the annual report to be 'apparently satisfactory'.
Northern Land Council
2.75
The Northern Land Council (NLC) is a corporate Commonwealth entity enabled by the Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA Act) as part of the PM&C portfolio. In 2018–19, the Northern Land Council reported to the Minister for Indigenous Affairs: Senator the Hon Nigel Scullion (until 28 May 2019) and the Hon Ken Wyatt AM MP (from 29 May 2019).
2.76
The NLC's purpose is stated in its corporate plan:
… to enable and assist Indigenous people within the NLC region to acquire and manage land and seas, protect sacred sites, culture and promote economic and community development.
Compliance
2.77
Pursuant to subsection 34C(7) of the Acts Interpretation Act 1901, the NLC wrote to the Minister for Indigenous Affairs on 11 October 2019 to request an extension to present its annual report to the Parliament by 4 November 2019.
2.78
In further correspondence to the minister dated 29 October 2019, the NLC provided the following statement outlining reasons for why it was unable to provide its annual report by the deadline of 15 October 2019.
For the first time. [sic] the NLC has been required to prepare financial statements that incorporate the NLC's own financial statements and those of a number of entities associated with the Aboriginal Investment Group (AIG): [sic]
This consolidation has been a complex, and at times, a difficult task and has required considerable effort at relatively short notice on behalf of NLC staff. The consolidation has contributed to a short delay in meeting the reporting deadline.
At this time the NLC expects to be able to provide the annual report to you within the timeframe indicated in our letter of 11 October 2019 for tabling during the November sittings.
2.79
The NLC's 2018–19 annual report was submitted to the minister on 23 April 2020, after the deadline of 15 October 2019 prescribed by paragraph 46(2)(a) of the PGPA Act. The report was presented out of session to the Senate on 2 July 2020 and tabled in the House of Representatives on 24 August 2020.
2.80
The committee found the NLC's annual report to be compliant with most of its reporting requirements. However, the committee notes the following matters for the NLC to take into consideration when preparing future annual reports.
Contents of the annual report
2.81
Section 17BE of the PGPA Rule specifies information which is required to be presented in the annual reports of corporate Commonwealth entities.
2.82
Subsection 17BE(e) requires corporate Commonwealth entities to report on any government policy orders that applied in relation to the entity during the period under section 22 of the PGPA Act. The compliance index in the NLC's annual report specified that this information was included on page 162; however, the report did not make any comment regarding policy orders.
2.83
Subsection 17BE(h) requires corporate Commonwealth entities to include a statement of any significant issue reported to the responsible minister under paragraph 19(1)(e) of the PGPA Act that relates to non-compliance with finance law. The compliance index in the NLC's annual report specified that this information was included on pages 4, 195, 196 and 197; however, the report did not make any comments which indicated neither compliance nor non-compliance with finance law.
2.84
The committee highlights its preference that in circumstances where entities do not have anything to report, a statement to that effect should be included in the annual report for clarity.
Performance
2.85
The NLC prepared annual performance statements in accordance with section 16F and subsection 17BE(g) of the PGPA Rule as well as paragraph 39(1)(e) of the PGPA Act.
2.86
Some priorities listed in the annual performance statements in the 2018–19 annual report did not accord with the priorities listed in the corporate plan. This made the NLC's performance for 2018–19 difficult to track and assess. Table 2.1 illustrates a comparison of the priorities listed in the corporate plan compared to those listed in the annual report.
Table 2.1: NLC priorities for 2018–19
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|
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1
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Prosecute ALRA Act and Native Title Act 1993 responsibilities to acquire and protect Aboriginal property rights
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Prosecute ALRA Act and Native Title Act 1993 responsibilities to acquire and protect Aboriginal property rights
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2
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Facilitate Community Development so as to protect and develop Aboriginal use of land and seas
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Legal and anthropology branches––maintenance of human resources and capacity
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3
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Maintain and continue to strengthen Ranger groups on country to further protect and maintain Aboriginal land and seas
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Facilitating the community planning and development unit so as to protect and develop Aboriginal Use of Land and Seas and strengthen Aboriginal community well-being
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4
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Facilitate arrangements to provide a more responsive and efficient Permit Management System to organise, manage and document licensed access to traditional lands and waters
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Maintaining and continuing to strengthen the capacity of skills of NLC-affiliated ranger groups working on country to further protect and maintain Aboriginal Land and Seas
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5
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Introduce improved processes to manage land use agreements and disbursement arrangements and lift internal capability by tracking activity through one consolidated system
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Develop and maintain a comprehensive communications system to facilitate the provision of information and advocacy of Traditional Owners' interests
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6
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Develop and maintain a comprehensive communications system to facilitate the provision of information for and provision of advocacy of Traditional Owners’ interests and ensure rangers and IPAs have effective local governance
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Nil
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7
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Continuously improving the NLC’s Policies and Procedures systems for more efficiency and best practice governance
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Facilitate arrangements to provide a more responsive and efficient permit management system to organise, manage and document licensed access to traditional lands and waters
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8
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Nil
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Continuously improving the NLC’s Policies and Procedures systems for more efficiency and best practice governance and administration
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Source: NLC, Annual report 2018–19, pp. 189–196; NLC, Corporate plan 2018–19 to 2021–22, pp. 18–25.
2.87
Although many of the priorities were the same or similar, numbering and language conflicted between documents. The committee draws attention to paragraph 32 of Annual performance statements for Commonwealth entities: Resource Management Guide No. 134:
32. If performance information, such as performance measures, targets, data sources and methodologies, differs from those set out in the corporate plan at the beginning of the reporting period, entities should explain these changes in their annual performance statements.
2.88
Additionally, the committee highlights the following further information of relevance stated in Annual performance statements for Commonwealth entities: Resource Management Guide No. 134:
28. When reporting actual performance, an entity should consider providing the following information for each performance measure:
the relevant target for that performance measure;
the performance methodology or data source from which performance has been measured;
prior year(s) results to show trends over time.
29. Entities often use, to good effect, a standard legend or graphic to illustrate the extent of achievement of individual performance measures. Where this approach is followed, it should be used in a consistent way throughout the annual performance statement. The inconsistent presentation of performance can result in a lack of clarity about the extent of achievement of individual performance measures, which in turn can make it difficult for a reader to understand the extent of achievement of an entity’s purposes.
…
31. As a matter of good practice, annual performance statements should also include a clearly presented summary of results to enable readers to readily assess the degree of achievement against its purposes.
2.89
In 2018–19, the NLC's performance was also guided by its Strategic Plan
2016–20, which complements the corporate plan and business plans for each operational area of the NLC.
2.90
The performance results included a discussion of the NLC's activities that were undertaken to work towards each performance criterion, but did not explicitly state if its criterion was achieved.
2.91
A brief analysis of the performance results noted the work undertaken by the NLC during the reporting period to support its Permits Reform project and Land Use Management and Royalties project. In 2018–19, the NLC facilitated information technology upgrades to modernise and improve flexibility within its workforce, and worked towards establishing a datacentre to 'strengthen risk management and achieve savings'.
2.92
Further, eight Aboriginal Groups worked through the Community Planning and Development Unit program 'to use their income for social, cultural, economic and environmental initiatives', with four of the 24 community-led projects being completed in 2018–19.
2.93
The Year in Review section of the NLC's annual report included a detailed recount of the activities undertaken by each branch and unit, which supported the performance results presented in the annual performance statements.
Financial statements
2.94
The NLC Group prepared financial statements in accordance with sections 42 and 43 of the PGPA Act for two accounting entities under the ALRA Act and the Native Title Act 1993.
2.95
The committee found the detailed notes accompanying the financial statements greatly assisted its examination of the NLC's financial performance during 2018–19.
2.96
The committee considers that the financial statements comply with the requirements set out in Commonwealth entities financial statements guide: Resource Management Guide No. 125 and notes the following results.
2.97
The NLC recorded an operating surplus of $2.8 million for 2018–19 (compared to a surplus of $0.8 million in 2017–18), with $55.1 million in expenses and $57.9 million received in income.
2.98
During 2018–19, $62.1 million was generated from Aboriginal land under the ALRA Act. As per instructions from Traditional Owners, 7709 royalty payments were made totalling approximately $60.5 million. The NLC also received additional grant funding from sources such as the DPM&C (approximately $5.4 million).
Committee view
2.99
Notwithstanding the matters discussed and for the purposes of its report to the Senate, the committee considers the company's annual report to be 'apparently satisfactory'.
Senator Claire Chandler
Chair