Chapter 3: Annual reports by statutory, non-statutory authorities and government companies
STATUTORY AUTHORITIES
Defence
Army and Air Force Canteen Service
3.1
The Army and Air Force Canteen Service Board
of Management Annual Report 1998–99 was tabled in the Senate on 19 October
1999. The report is tabled in accordance with section 9 of the Commonwealth
Authorities and Companies Act 1997.
3.2
The Army and Air Force Canteen Service (AAFCANS)
was established by regulations under the Defence Act 1903. The mission
of the organisation is to provide, within the Australian Defence community,
quality, competitively priced and convenient consumer and leisure goods and
services and generate a satisfactory financial return to stakeholders.[1]
3.3
The Board adopted the trade name 'Frontline
Defence Services' (‘Frontline’) in 1997 as part of a major business
realignment.
3.4
In 1998, Head, Defence Personnel Executive
commissioned a review (Kelly Review) of personnel support, including a review
of canteen services. Mr Kelly delivered to Defence several interim reports,
which recommended far reaching restructuring of welfare and amenities support.
The Board reports that its continuing program of restructure, in part,
initiated the review and that it endorses the broad thrust of recommendations.[2]
3.5
The organisation’s emphasis will be on exploring
and developing new business opportunities (for example, support to exercises
and operations), extract the benefits of a national approach particularly in
dealings with key suppliers and to improve the facilities from which the
business operates at Defence installations.[3]
3.6
The 1998–99 report is an informative account of
the operations and performance of AAFCANS. The Committee finds that this report
fulfils all requirements outlined in the Guidelines for statutory bodies.
Australian Military Forces Relief Trust Fund
3.7
The Australian Military Forces Relief Trust
Fund Annual Report 1998–99 was tabled in the Senate
on 19 October 1999. The report is submitted in accordance with
section 9 of the Commonwealth Authorities and Companies Act 1997.
3.8
The Military Forces Relief Trust Fund was
established by the Services Trust Funds Act 1947. The Fund provides
financial services to members who have served in the Army, or in association
with the Army. The benefits to members and their families are in the form of
low interest loans and welfare grants.
3.9
During the year under review the Trustees
provided interest free loans totalling $971,018 to 326 clients and approved
grants totalling $18,722.[4]
3.10
The Trustees report that the continuing impact
of the Defence Reform Program is likely to reduce the capacity of regional
committees to continue providing assistance to the Fund. The Trustees are
examining alternative arrangements to ensure that eligible clients are not
compromised in their ability to access Fund benefits.[5]
3.11
The report provides clear and concise
information on the operation and financial position of the fund for the
reporting period. Given the nature of the Trust Funds’ activities, the
Committee finds that the report adequately complies with all reporting
requirements for statutory authorities.
Commonwealth and Defence Force Ombudsman
3.12
The Commonwealth Ombudsman Annual Report
1998–99 was tabled in the Senate on 20 October 1999. In accordance
with section 19F(3) of the Ombudsman Act 1976, the report contains the
sixteenth Defence Force Ombudsman’s Annual Report.
3.13
The role of the Ombudsman’s office is to
consider complaints from people who believe they have been adversely affected
by defective administration of Commonwealth Government departments or agencies.
The office will ‘investigate complaints where appropriate and aim to resolve
complaints in an impartial and effective way and achieve fair outcomes’.[6] The Committee considered only
the parts of the report or general data relevant to the defence portfolio.
3.14
The Ombudsman stated in the 1997–98 report that
his office was developing an enhanced set of performance indicators that he
hoped would provide a more comprehensive and meaningful account of the work of
the Ombudsman’s office. He stated in this year’s report that the indicators
have been refined and several new measures have been added. The qualitative
measures in the performing of the Office’s complaint handling role will be
further improved through the findings of a major customer survey to be
undertaken during the year 1999–2000.[7]
3.15
The Committee noted that the Ombudsman’s report
this year included a section entitled ‘Performance forecasts 1998–99—a summary
of how we achieved’. The summary describes the key outcomes planned and the
Office’s achievements against them.[8]
3.16
The 1998–99 report is an informative account of
the operations and performance of the Commonwealth and Defence Ombudsman. The
Committee finds that this report fulfils all requirements outlined in the Guidelines
for statutory bodies.
Defence Force Retirement and Death Benefits Authority
3.17
The Defence Force Retirement and Death
Benefits Authority Annual Report 1998–99 was tabled in the Senate on 19
October 1999. The report is submitted in accordance with section 16(1) of the Defence
Force Retirement and Death Benefits Act 1973.
3.18
The Defence Force Retirement and Death Benefits
Authority came into operation on 1 October 1972 under the Defence Force
Retirement and Death Benefits Act 1973. Although closed to new members in
1991, the Scheme continues to provide benefits for existing members.[9]
3.19
This year marks the 50th anniversary
of the Authority providing retirement benefits to Defence Force personnel, with
emphasis on meeting the changing needs of its members.[10]
3.20
The Committee notes that throughout the report
the Authority has used tables to demonstrate how the organisation measured and
evaluated the efficiency and effectiveness of services provided to clients. The
Authority has also used graphs and tables to present statistics on the
operations of the organisation for the year in review. It is a well-written
report which informs the reader and is easy to use.[11]
3.21
Although a statutory authority, the Authority
aims to comply, where applicable, with the Requirements for Department Annual
Reports. The Committee finds that this report complies with all requirements
outlined in the Guidelines (1982) for statutory bodies.
Judge
Advocate General (JAG)
3.22
The Judge Advocate General Report for the period
1 January to 31 December 1998 was tabled in the Senate on 24 August 1999.
3.23
The office of Judge Advocate General (JAG) of
the Australian Defence Force was created by the Defence Force Discipline Act
1982. The JAG is an office held only by a Federal Court or a Supreme Court
judge. The position has a number of functions, including making procedural
rules for service tribunals, providing the final legal review of proceedings
within the Australian Defence Force, and, reporting upon the operation of laws
relating to the discipline of the ADF.[12]
3.24
The JAG reports that the integration of defence
legal services into the Defence Legal Office (DLO), was completed in 1997. The
Committee has followed with interest the integration of this service and notes
that as a result of the DLO review, changes will be made to the present
structure of that office next year.[13]
3.25
In his 1997 report the JAG commented on the
review conducted in 1997 into judicial independence of military trials. The
Honourable A R Abadee, RFD, was given the task of studying the arrangements for
the conduct of military trails.[14]
3.26
The JAG reports that a plan has been devised to
implement several recommendations made in the ‘Abadee’ Report. Also, that
several administrative and procedural changes have been made to the military
justice system.[15]
3.27
The report is a concise and well-written account
of the operations and performance of the office of the Judge Advocate General.
The Committee finds that this report fulfils all requirements outlined in the Guidelines
for statutory bodies.
Military Superannuation and Benefits Board of Trustees No. 1
3.28
The Military Superannuation and
Benefits Board of Trustees No 1 Annual Report 1998–99 was tabled in
the Senate on 19 October 1999.
3.29
The Military Superannuation and Benefits Scheme
(MSBS) was established on 1 October 1991 under section 26 of the Military
Superannuation and Benefits Act 1991, to replace the Defence Force
Retirement and Death Benefits Scheme (DFRDB) for new contributors. The MSBS is
administered by ComSuper (Commonwealth Superannuation Administration) on behalf
of the Board.[16]
The compliance index flags the functions and responsibilities undertaken by
ComSuper as part of their administration of MSBS. The reporting requirements
met by ComSuper are covered in the Commissioner for Superannuation Annual
Report 1998–99.
3.30
The Fund experienced a challenging year due to
the volatility of the investment market, characterised by major swings in many
of the world’s financial markets. This volatility produced a range of returns
for Fund investors over the course of the year. The Chairman commented in his
overview that special efforts were made to minimise the effects of the negative
returns in September and October 1998. Members about to leave the Defence Force
were given the opportunity of keeping their money in the Fund until returns
again became positive.[17]
3.31
The Committee notes that during the period under
review the Board took the opportunity to change the custody arrangements of
assets of the scheme on behalf of the Board. After a competitive process the
Board appointed State Street Australia as the Fund’s new Master Custodian. The
Board, with its independent audit adviser and its administrator, oversaw the
transfer of assets between the two custodians. The Chairman reported that the
transition occurred smoothly with an unqualified audit report on the
completeness and accuracy of the transfer.[18]
3.32
The Board has again provided an informative
document that is clearly written and well-illustrated by graphs and tables. The
Committee considers that the report complies with the reporting requirements
for statutory authorities.
Repatriation Medical Authority (RMA)
3.33
The Repatriation Medical Authority Fifth
Annual Report 1998–99 was tabled in the Senate on 13 October 1999. The
Repatriation Medical Authority was established on 30 June 1994 under section
196B of the Veterans’ Entitlements Act 1986.
3.34
The RMA has the function of determining
Statements of Principles in respect of particular kinds of injury, disease or
death, in order for the Repatriation Commission to assess claims for disability
pensions. To this end the Committee notes that the report provides a useful
table showing the Statements of Principles approved for 1998–99.[19]
3.35
During the reporting period the Authority met
formally on ten occasions and determined eighty Statements of Principles.
Fifty-nine new Statements of Principles replaced eighty-one existing statements
and twenty existing amendments. Since the inception of the Authority 259
Statements of Principles have been determined for particular kinds of injury or
disease.[20]
3.36
The Committee notes that as a result of
recommendations made in a review report on the RMA, the Authority co-hosted
with Department of Veterans' Affairs, a three-day forum in Canberra in November
1998. The aim of the conference was to bring together key groups concerned with
the work of the authority. The Authority reports that all five forum objectives
and outcomes were achieved.[21]
3.37
The RMA continues to provide a good overview of
the organisation and its functions by presenting a brief, but informative
outline of major objectives and outcomes achieved over the reporting period.
The Committee finds that the Authority’s fifth report is concise and clearly
written and complies with the reporting requirements for statutory bodies as
outlined in the 1982 Guidelines.
Royal Australian Air Force Veterans’ Residences Trust Fund
3.38
The Royal Australian Air Force Veterans’
Trust Fund Annual Report 1998–99 was tabled in the Senate on 19 October
1999. The report was submitted to the Minister and subsequently tabled within
the period of time prescribed in section 10A of the Royal Australian Air
Force Veterans’ Residences Act 1953.
3.39
The Trust operates in the five eastern states to
provide accommodation for ex‑RAAF veterans and their families in
difficult circumstances. The Trust owns 67 residences comprising one bedroom
and two bedroom self-contained units in six locations.[22]
3.40
The Chairman of the Trust reported that changes
affecting the operation of the Trust included a change in government accounting
policies from historical cost to market value for land and buildings and a
‘below average’ occupancy rate of accommodation with a consequent reduction in
rental receipts. Also, an increase in repair and maintenance costs coupled with
a reduction in national interest rates severely affected the net operating
surplus of the Trust for 1998–99.[23]
3.41
The Committee notes that according the Chairman,
the reduction in excess revenue over expenditure will not adversely affect the
operations of the Trust.
3.42
The Committee also notes that the Trustees again
sought a review in government policy regarding the requirement for the Trust to
pay the Australian National Audit Office its annual audit fee. The Trustees
consider that applying the fee to a Trust is inappropriate and that they should
be exempt from the charge.[24]
3.43
The Committee finds that again the report was
concise, clearly written and complies with all the reporting requirements for
statutory authorities.
Royal
Australian Air Force Welfare Trust Fund
3.44
The Royal Australian Air Force Welfare Trust
Fund Annual Report 1998–99 was tabled in the Senate on 12 October 1999
in compliance with reporting requirements under section 34 of the Services
Trust Funds Act 1947.
3.45
Since its inception in 1947, as part of the RAAF
Chaplain Branch program, the Trust Fund has contributed to the welfare and
morale of RAAF members and ex-serving members and their families by providing
loans or grants to them in times of need. The Fund’s head office is in Canberra
and is supported by a network of regional committees. The committees are usually
located at each RAAF base to provide benefits to eligible persons in Australia
and to RAAF personnel based overseas.[25]
3.46
The Committee notes that the total number and
value of loans approved for the reporting period was down on previous years.
The Trustees attribute this to a reduction in the numbers of RAAF personnel.
Applicants applied for loans mainly for home improvements, accounting for
37 percent of the loans distributed, and group life insurance, accounting
for 29.63 percent of loans.[26]
3.47
Grants totalling $11,500 were provided to assist
mainly with the education of the children of deceased or incapacitated
ex-members of the RAAF. The Fund reports that since mid 1988, no request for
assistance has been delayed because of lack of available funds. [27]
3.48
The Committee finds that the report is a concise
account of the Trust’s activities for the year and complies with all reporting
requirements for statutory authorities.
Veterans’ Review Board
3.49
The Veterans’ Review Board Annual Report
1998–99 was tabled in the Senate on 20 October 1999.
3.50
The Veterans’ Review Board (VRB) was established
by the Repatriation Legislation Amendment Act 1984. It began operations
in 1985 to implement the Government's decision to adopt the recommendations of
the Administrative Review Council. The main recommendation of the Council was
that a statutory review body be established to review the merits of the primary
case decisions made by delegates of the Repatriation Commission on claims for
pension.
3.51
The Committee notes that the VRB participated in
a number of activities during the year to ensure that its procedures worked
effectively. Board members and senior staff attended administrative law
conferences. They also contributed to the training and information program
managed by the Department of Veterans' Affairs and ex-service organisations for
the training of pension and welfare officers and advocates.[28]
3.52
The Board has also developed research and
information services which are available through the Intranet and various
publications. Members are kept informed, for example, on legislative
amendments, details of significant or interesting VRB decisions, and research
papers relevant to their case-load.[29]
3.53
The Committee considers this annual report to be
an informative document. It is well produced and is written in a clear and
concise manner, with good use made of tables. The Committee finds that the
report complies with all reporting requirements for statutory authorities as
outlined in the 1982 Guidelines.
Foreign Affairs, Defence and Trade
Australia-Japan Foundation
3.54
The Australia-Japan Foundation Annual Report
1998-99 was tabled in the Senate on 19 October 1999. The report was
tabled in accordance with section 25 of the Australia-Japan Foundation Act
1976.
3.55
The Foundation was established by the same act
in May 1976. Its aims are ‘to deepen and strengthen relations between Australia
and Japan by fostering greater mutual awareness and understanding through
people-to-people contact...’[30]
3.56
The Committee notes that 1998–99 was a
transitional period for the Foundation in its move to accrual budgeting. The
Foundation reports that the secretariat has put considerable effort into
meeting its commitment to ensure an efficient system of reporting against its
outcomes and outputs for the 1999–2000 annual report.[31]
3.57
The Chairman reported that the past year was
also one of review and reflection for the Foundation.
3.58
It developed and presented to the Minister, a
five-year strategic plan. The plan reviewed the Foundation’s objectives, past
achievements, the current operating environment and outlined the strategy
devised for the future. It also reviewed its activities in the context of the
appointment of a new Chairman and a majority of new board members.
3.59
It presented a submission to, and its
secretariat appeared before the Senate Foreign Affairs, Defence and Trade
References Committee’s inquiry into contemporary developments in Japan.[32]
3.60
The Foundation’s report is a well-written and
well-presented account of its activities for the year. The Committee considers
that the report meets all the guidelines for annual reports of statutory
authorities.
Australian Safeguards and Non-Proliferation Office (ASNO)
3.61
The Australian Safeguards and
Non-Proliferation Annual Report 1998–99 was
tabled in the Senate on 12 October 1999.
3.62
The Australian Safeguards and Non-Proliferation
Office (ASNO) was established in August 1998 to combine the functions of the
Australian Safeguards Office (ASO), the Chemical Weapons Convention Office
(CWCO) and, following ratification, the Australian Comprehensive Test-Ban
Office (ACTBO). The directorships of these organisations are now combined by
the role of the Director-General, ASNO.[33]
3.63
ASNO stated that, as an umbrella organisation,
its principal objective ‘ is to enhance Australian and international security
through activities which contribute regimes against proliferation of weapons of
mass destruction’.[34]
3.64
The Australian Safeguards Office and the
Chemical Weapons Convention Office function under, and ensure the effective
operation of, the Nuclear Non-Proliferation (Safeguards) Act 1987 and
the Chemical Weapons (Prohibition) Act 1994. ASNO administers both acts.
3.65
The Australian Safeguards Office (ASO) keeps
account of all nuclear material in Australia. It provides the International
Atomic Energy Agency (IAEA) with information to enable application of
safeguards. It regulates nuclear material and nuclear items in Australia so
they remain in authorised use. ASO contributes to the formulation of Australian
policy on nuclear safeguards and non-proliferation issues.[35]
3.66
The Chemical Weapons Convention Office (CWCO)
acts as the focal point for identifying and gathering information on industrial
chemical facilities. It also works with operators of declared facilities to
prepare them for the possibility of inspection from the Organisation for the
Prohibition of Chemical Weapons (OPCW). Another important CWCO function is to
provide advice to government on issues related to Australia's obligations under
the Chemical Weapons Convention.[36]
3.67
The Committee notes in the report that the focus
of ASNO will be verification of treaty commitments. The organisation will
contribute to the development of and operation of effective international
verification mechanisms designed to promote transparency and provide assurance
that non-proliferation obligations are being observed.[37]
3.68
The Committee notes that the joint report
provides a sound account of the year in review, current topics and programs
scheduled for the upcoming year. This is complemented by a comprehensive and
well-structured review of program activities and performance outcomes. The
report includes a useful section entitled 'Background information’ which
provides an outline of the nuclear fuel cycle. This helps the reader grasp the
complexities of the issues dealt with by the organisations dealt with in this
report.[38]
3.69
The Director has produced an informative report
that is clearly written and presented in an effective format. The Committee
commends the ASNO for producing a quality document that complies with the
reporting requirements for statutory bodies.
Australian
Trade Commission (Austrade)
3.70
The Australian Trade Commission (Austrade)
Annual Report 1998–99 was tabled in the Senate on 21 October 1999.
Austrade was established under the Australian Trade Commission Act 1985
and functions under section 8 of the act.
3.71
Austrade is a business-focussed statutory
authority within the Foreign Affairs and Trade portfolio. Austrade works with
Australian businesses to help them win export business and generate inward and
outward investment.[39]
3.72
The Chairman, in his letter to the Minister,
notes that ‘Austrade performed strongly in 1998–99, contributing significantly
to Australia’s export and investment performance and the implementation of
government trade policy. Export impact and other performance indicators were on
track, despite a drop in Australia’s overall exports’.[40] This claim is borne out by the
statistics in the dot point overview in the front of the report, and the
section entitled ‘tracking our performance’ later in the report, in which
performance was measured by a number of key performance indicators.[41]
3.73
The Committee commends Austrade on another high
quality report and finds that it meets all the guidelines for annual reports of
statutory authorities.
Export Finance and Insurance Corporation (EFIC)
3.74
The Export Finance and Insurance Corporation
Annual Report 1999 was tabled in the Senate on 21 October 1999. The Export
Finance and Insurance Corporation (EFIC) is Australia’s official export credit
agency. It was established as statutory corporation under the Export Finance
and Insurance Corporation Act 1991.
3.75
The Corporation’s role is to use its insurance
and finance products to help increase Australian exports. It focuses on the
exports that banks and commercial insurers may have difficulty covering,
because of the size of the transaction or its risk. [42]
3.76
EFIC is a self-funded organisation. Operating
costs are covered by the income from the fees and premiums charged to clients,
as well as the interest earned on the investment of the Corporation’s capital
and reserves.[43]
3.77
The Committee notes the section in the report
entitled ‘Performance against principal objectives’. This section gives the
reader a concise two-page overview of EFIC’s performance for the year 1998–99.
It describes the objectives, key performance indicators, outcomes and the
revised objectives for the years ahead.[44]
3.78
The Board reports that in accordance with
decisions taken by the Government on the application of competition policy
principles to EFIC, the Corporation will pay tax on its short-term credit
insurance business. The new ‘tax equivalent’ arrangements applied as from 1
July 1998. EFIC will also be subject to the Insurance Contracts Act, and
changes to its products and processes are underway to reflect these new
arrangements as from 1 July 2000.[45]
3.79
The Committee commends EFIC for producing a high
quality report. Of particular interest were the early sections which used
colourful photographs and creative layouts. These had a ‘human interest’
orientation that introduced the reader to the EFIC staff and their work. This
was balanced later in the report by the section entitled ‘Report on
operations’. This section was uncluttered and clearly written, with tables and
graphs to help the reader through the comprehensive business operations. The
Committee considers that the report meets all the guidelines for annual reports
of statutory authorities.
NON-STATUTORY
AUTHORITIES
Australia-Korea Foundation (AKF)
3.80
The Australia-Korea Foundation Annual Report
1997–98 was tabled in the Senate on 12 October 1999. The Australian-Korea
Foundation is a non-statutory body established by the Australian Government in
May 1992. It is not required to submit an annual report but follows the
practice of other bilateral foundations with secretariats in the Department of
Foreign Affairs and Trade.
3.81
A consultative body set up in 1991 to identify
areas for further development between the Australian and Korean (ROK)
Governments, recommended that a foundation be established to act as a catalyst
in stimulating and strengthening the bilateral relationship.[46] The Foundation promotes
people-to-people exchanges and international links covering the spectrum of
Australia’s relations with Korea, particularly in the areas of education,
science and technology, commerce and industry, media, the arts and sport.[47]
3.82
The Committee notes that the main focus of the
Foundation during 1997–98 was to provide seed funding for new initiatives,
promote visits and exchanges, and act as a facilitator to build wider avenues
of mutual understanding and goodwill.[48]
3.83
In tandem with this philosophy, the Board
reviewed its objectives, especially in terms of its programs and future
directions. It has re-assessed its priorities to take account of rapidly
changing social, political and economic conditions in Australia and the Republic
of Korea. The result of that re-assessment is a list of recommendations to be
enacted in a three-year strategic plan.[49]
3.84
The Committee finds this report is well designed
and comprehensive in its coverage of the Australia-Korea Foundation’s
activities. It complies with all reporting requirements for non-statutory
bodies.
Australian Agency for International Development (AusAID)
3.85
The Australian Agency for International
Development (AusAID) Annual Report 1998–99 was tabled in the Senate on
21 October 1999. AusAID is an autonomous agency within the Foreign Affairs
and Trade portfolio. The Director General of AusAID is responsible to the
Secretary of the Department of Foreign Affairs and Trade for administration of
the agency and is a member of the DFAT Executive.[50]
3.86
AusAID administers Australia’s overseas aid
program, which aims to ‘advance Australia’s national interest by assisting
developing countries to reduce poverty and achieve sustainable development’.[51]
3.87
The Director General, in his overview, reported
that during 1998–99 ‘the agency improved its services to the Minister...the
Government and Parliament, and improved agency accountability and transparency
in the delivery of the aid program’. The Director General added that the aid
program further progressed Australia’s national interest by forging closer
bilateral aid partnerships which encouraged greater international cooperation
on global development issues of concern to Australia.[52]
3.88
AusAID has produced a well-written report which
gives a comprehensive coverage of the of agency’s activities for the year
1998–99. The Committee notes, in particular, the detailed information given in
the three sub-programs, using ‘objectives, performance indicators and results’.
This information is supported by photographs, tables and graphs, which provide
the reader with a rounded account of each area of responsibility.[53]
3.89 The Committee commends AusAID on a well-presented and articulate report and finds that it complies with all reporting requirements for non-statutory bodies.
Senator David Brownhill
Chairman
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