Annual reports of departments
Department of Defence
1.1
The Department of Defence annual report 2013–14 was presented out of
sitting on 31 October 2014 and tabled in the Senate on 17 November 2014.
Reviews by the Secretary and the
Chief of the Defence Force
1.2
In his review, the Secretary of the Department, Mr Dennis Richardson AO,
highlighted the significant achievements of Defence during the year, including
contributions to the whole-of-government effort in the search for MH370 and in
the MH17 recovery operation.[1]
The Secretary noted that the department continued to downsize through mostly natural
attrition and stated that:
The focus over the years on Defence APS staffing numbers has
distorted rational management of the workforce which, on the civilian side,
consists of APS, contractors and service providers. It also ignores past
reforms which, as an efficiency and cost-saving measure, replaced higher-cost
ADF personnel with lower-cost APS in jobs which did not require specific ADF
skills.[2]
1.3
In addition to initiatives to increase the percentage of female
graduates, the Secretary noted that the Defence cultural reform program 'Pathway
to Change' was in continuance. The reform strategy incorporates recommendations
made in a series of reviews into Defence and ADF culture.[3]
Looking forward, the Secretary noted:
The year 2014–15 will be dominated by the negotiations for a
new workplace agreement, the First Principles Review and the new White Paper...The
year 2014–15 will see continued Australian Defence involvement in Afghanistan
and Iraq, continued regional engagement, including through established forums
such as the ASEAN Defence Ministers Meeting Plus, the trilateral strategic
arrangements with the United States and Japan, and the essential engagement we
have with China, Indonesia, Malaysia, Singapore, the Republic of Korea, India,
Papua New Guinea, Timor-Leste and South Pacific countries. At the same time,
our relations with NATO are being upgraded.[4]
1.4
Acknowledgement and gratitude was expressed toward General David Hurley
AC DSC, who completed his term as Chief of the Defence Force (CDF) on 30 June
2014, as well as a welcome to Air Chief Marshal Mark Binskin AC, who was
appointed on 1 July 2014.[5]
1.5
In his first review as Chief of the Defence Force, Air Chief Marshal
Mark Binskin AC acknowledged General Hurley's outstanding leadership, and noted
that his tenure as CDF commenced with a Defence Force which is 'well poised to
meet its challenges'.[6]
The CDF stated his priority over the next four years is to successfully
transform the ADF into the next generation force in accordance with the
strategic direction of the upcoming 2015 Defence White Paper.[7]
The CDF also noted that he expected his term to be a period of continuing
change and challenges, as highlighted by the short-notice deployment to the
Middle East to counter the Islamic State of Iraq and the Levant in September
2014.[8]
Matters relating to the operations
and performance of the department
Defence's financial statements
1.6
The committee is required to note any significant matters relating to
the operations and performance of the bodies presenting their annual reports.
The committee draws attention to the department's financial statements.
1.7
It is mandatory under section 57 of the Financial Management and Accountability
Act 1997 for the annual report to include a copy of the audited financial
statements and the Auditor-General's report thereon.
Australian National Audit Office
audit
1.8
The Australian National Audit Office (ANAO) report for the Department of
Defence stated:
During the 2013–14 final audit phase, Defence resolved three
moderate audit issues and partially resolved one moderate audit issue
previously reported. The resolved issues relate to the quality of data in the
Military Integrated Logistics Information System (MILIS), the management of
civilian employee leave recording and management of termination benefits, and
the accounting for liquidated damages received as a result of the settlement of
contract disputes. The issue relating to the impairment of SME has been
partially resolved and downgraded to a category C finding. Two moderate audit
issues were identified during the 2013–14 final audit phase. These relate to
management of heritage and cultural assets and the accuracy and reporting of
Defence’s commitments.[9]
1.9
The areas where moderate audit issues remain outstanding in the 2013–14 audit
include:
-
general assets management;
-
internal control and financial reporting;
-
inventory and asset management; and
-
privileged user access.[10]
1.10
New audit issues were identified in the following areas during the
2013–14 audit:
-
heritage and cultural assets; and
-
accuracy of the schedule of commitments.[11]
Summary
1.11
The committee finds the annual report of the Department of Defence to be
satisfactory in complying with the relevant requirements for the preparation of
annual reports.
Department of Foreign Affairs and Trade
1.12
The Department of Foreign Affairs and Trade (DFAT) annual report
2013–2014 was tabled in the House of Representatives on 22 October 2014 and in
the Senate on 27 October 2014.
Secretary's Review
1.13
Mr Peter Varghese AO, the Secretary of the Department, noted that substantial
internal change was undertaken amid an intensive period of free trade agreement
negotiations, as the department successfully integrated the Australian Agency
for International Development (AusAID) from 1 November 2013.[12]
1.14
The Secretary observed that changing global environments continue to pose
challenges for the department:
Our own society and economy are becoming increasingly
globalised. Our economic success is heavily dependent on our international
competitiveness and increasing trade and investment opportunities. The rapidity
and scale of technological and social change in the Indo–Pacific—the arc of
countries stretching from India, through East and South Asia, to the United
States—present unprecedented opportunities for Australia. Nine of our top ten
trading partners are in this region. But the changing environment also poses
challenges and risk. Shifts in economic power to countries like China, India,
and Indonesia bring with them strategic challenges. While the countries of the
Indo–Pacific are more economically interdependent than ever, the region, with
its legacies of strategic rivalry and historic animosity, retains a capacity for
strategic surprise.[13]
Significant issues and developments
1.15
The Secretary reflected that during the reporting
period, Australia's bilateral relationships were strengthened and broadened.
Ministerial consultations in Washington reiterated intent to conclude a
Trans–Pacific Partnership agreement, a consulate–general was opened in Chengdu
to support engagement with China and Australia's economic relationship with
Japan was deepened with the conclusion of the Japan–Australia Economic Partnership
Agreement.[14]
The Secretary further noted that negotiations had concluded on the
Korea–Australia Free Trade Agreement, the Economic Cooperation Treaty was
signed with Papua New Guinea and the department managed transition of the
Regional Assistance Mission to the Solomon Islands to a policing mission.[15]
Regional and multilateral diplomacy
1.16
The Secretary drew attention to the department's work to advance
Australian interests, with targeted regional and multilateral diplomacy:
We worked with ASEAN member states to pursue a stable
strategic environment in Southeast Asia...Our efforts to enhance the EAS’s
political and security agenda delivered results, with leaders this year
discussing regional maritime security as well as instability on the Korean
Peninsula. We used Australia's non-permanent seat on the United Nations
Security Council to drive outcomes that enhanced international security and
Australia's development assistance environment. We established a basis for UN
support to Afghanistan beyond 2015 and secured the first-ever resolution on
small arms and light weapons. Australian advocacy delivered a critical
resolution on humanitarian access in Syria.[16]
Delivering services to Australians
1.17
In his review, the Secretary noted that during the year, the department issued
1.8 million Australian travel documents and introduced the next generation of
passports, the P-series, which include enhanced security features.[17]
The Secretary also noted that consular services continue to increase in demand:
We provided consular assistance and services to 14 558
Australians who experienced difficulties while overseas, an increase of 22 per
cent over the previous year. Our consular Emergency Centre, which provides
consular clients with 24 hours service 7 days a week, received more than 53 000
calls over the period.[18]
Corporate governance and management
1.18
The Secretary commented on the successful integration of Australia's aid
program, describing it as a substantial achievement, and a challenging period
for many staff.[19]
The Secretary also reflected on the year's difficult staffing decisions:
Following an assessment on the efficiencies of integration,
the Government decided on a reduction of approximately 500 staff by the end of
2014–15. I am confident the department will achieve the reduction through a
careful process of voluntary redundancies and natural attrition.[20]
1.19
The Secretary also observed that the department oversaw a substantial
construction, fit–out and refurbishment program, including construction of a
new chancery and head of mission residence in Bangkok and the ongoing
construction of a new embassy in Jakarta.[21]
Outlook
1.20
In his discussion of the outlook for the department, the Secretary
stated that Australia can expect continued strong growth in the region and that
the department is well positioned to meet the challenges ahead:
The global dynamic of transition shows no signs of slowing—particularly
in our own Indo–Pacific region. The significance of the region to Australia will
only grow, as India looks set to join the United States, China and Japan among
the top four global economies. In the coming year, we will lead the
Government's economic diplomacy agenda, undertaking activities that support
trade, investment, growth and business. Implementation of our FTAs with Japan
and Korea will be a key focus. We will accelerate the tempo of FTA negotiations
with China and progress a comprehensive Trans–Pacific Partnership, the Regional
Comprehensive Economic Partnership, and PACER Plus negotiations...We will use our
remaining UN Security Council tenure to deliver outcomes that are in
Australia's interests and promote international security and, through that,
prosperity.[22]
1.21
The Secretary acknowledged that the department's achievements were owed
to its dedicated staff in Australia and overseas.
External Scrutiny and
Accountability
1.22
The annual report provided information on the significant developments
in external scrutiny of the department and the department's response.
1.23
Departmental officers appeared as witnesses before the Joint Standing
Committee on Treaties in relation to three proposed treaty actions.[23]
During the year the department successfully defended eight employment actions
brought in a foreign court by former locally engaged staff members; one
plaintiff has appealed the court decision.[24]
At the end of the financial year there were six active applications before the
Administrative Appeals Tribunal concerning passports matters.[25]
1.24
In 2013–14, the Auditor-General tabled in parliament four reports by the
ANAO relating to the department's operations:
-
Report No. 7: Agency Management of Arrangements to Meet
Australia's Treaty Obligations;
-
Report No. 13: Audits of the Financial Statements of Australian
Government Entities for the period ended 30 June 2013;
-
Report No. 44: The Interim Phase of the Audit of Financial
Statements of Major General Government Sector Agencies for the year ending 30 June 2014;
and
-
Report No. 50: Cyber Attacks: Securing Agencies' ICT Systems.[26]
Summary
1.25
The committee finds that the DFAT annual report adequately complies with
all reporting requirements for a department.
Department of Veterans' Affairs
1.26
The Department of Veterans' Affairs (DVA) is the primary service
delivery agency that develops and implements programs to assist the veteran and
defence force communities. It provides administrative support to the
Repatriation Commission and the Military Rehabilitation and Compensation
Commission. The Repatriation Commission administers the Veterans'
Entitlements Act 1986, and is responsible for granting pensions, allowances
and other benefits, providing treatment and other services. The Military and
Rehabilitation and Compensation Commission is responsible for the
administration of benefits and arrangements under the Military
Rehabilitation and Compensation Act 2004.
1.27
DVA's annual report 2013–2014 was tabled in the Senate on 17 November
2014. The report also included separate reports of both the Repatriation
Commission and the Military Rehabilitation and Compensation Commission. They
describe how each commission interrelates with DVA, its membership and the main
activities for the reporting period. The reports do not include performance
reporting, which is covered in DVA's report.
Secretary's year in review
1.28
In the Secretary's year in review, Mr Simon Lewis elaborated on some of
the Department's achievements, including the launch of the Transition and
Wellbeing Research Programme, improving delivery of Veterans’ Access Network
services, the ongoing implementation of the Government's Anzac Centenary
Program and managing commemorative activities.
Mental health care
1.29
The Secretary outlined the Department's continuing priority to support
the mental health of members of the veteran community. He noted 2013–14 is the
first year of implementation of the Veteran Mental Health Strategy–A Ten Year
Framework, 2013–2023. The new strategic model aims to generate best practice
research to support mental health care. He explained the collaborative research
efforts between DVA, Defence and research institutions:
The Transition and Wellbeing Research Programme is part of
this new model and represents a significant investment by DVA and Defence of
almost $5 million over four years, from 2013–14 to 2016–17. This comprehensive
programme of study involves a consortium of six research institutions examining
the impact of contemporary military service on the mental, physical and social
health of serving and ex-serving personnel and their families...Importantly, this
research will also investigate how veterans access mental health services and
the use of emerging technology.[27]
1.30
Mr Lewis also drew attention to the implementation of the $26.4 million
Strengthening Veteran Mental Health 2013–14 Budget package, to help with the
treatment of mental health conditions. Three major initiatives were launched
from
1 July 2014. The Secretary highlighted that:
In one of the new initiatives, existing arrangements whereby
DVA will pay for expanded access to mental health treatment for eligible
veterans and peacetime service personnel without the need for them to establish
that their mental health condition is related to service will be
expanded. Another initiative will expand access to the Veterans and Veterans
Families Counselling Service. The third initiative will introduce a one-off
post-discharge physical and mental health assessment for former serving
personnel, funded under Medicare. It will enable GPs to make an early diagnosis
and arrange for any mental and physical health concerns to be treated.[28]
Delivery of Veterans' Access
Network services
1.31
The Secretary reflected on the Department's community consultation
process, held during March 2014, which examined whether the provision of
Veterans’ Access Network (VAN) services through regional shopfronts in New
South Wales and Victoria was an effective way to meet the needs of the veteran
community:
The feedback received during this process indicated that
veterans want to be able to access DVA services through a variety of
mechanisms, including phone and online assistance. It also demonstrated that
while face-to-face service is important to DVA clients, the service does not
necessarily need to be provided through a VAN shopfront. Based on the input received during the
consultation, combined with a significant decline in the numbers of clients
visiting VAN shopfronts, alternative arrangements were put in place to provide
veterans living in these regions with face-to-face VAN services. These changes
will ensure that DVA can continue to offer services to veterans and their
families for the long term.[29]
Commemorative activities
1.32
The Secretary noted the Department's management of commemorative
activities during the 2013–14 year, including Anzac Day services at Gallipoli,
Villers–Bretonneux and Isurava. In June 2014, Australian veterans travelled to
Normandy, France, to attend international commemorations marking the 70th
anniversary of the D-Day landings.[30]
DVA also worked with the Embassy of the Republic of Korea to deliver a national
service in Canberra:
In July 2013, DVA worked with the Embassy of the Republic of
Korea to deliver a national service at the Korean Memorial on Anzac Parade,
Canberra, to commemorate the 60th anniversary of the Korean War armistice. The
service brought together Australian and Korean veterans, their families and
communities to commemorate their shared losses and to celebrate the enduring
friendships forged between the countries involved in the United Nations
intervention in Korea. Also in July 2013, a mission of 15 veterans travelled to
Korea to mark the 60th anniversary of the armistice.[31]
Anzac centenary
1.33
The Anzac Centenary commenced on 4 August 2014 and will continue until
11 November 2018. DVA is the lead agency for developing and managing the
implementation of the Government’s arrangements for the Anzac Centenary
Program, with a number of events planned at the Commonwealth, state and
territory levels.[32]
Mr Lewis discussed commemoration of significant events across the Anzac
Centenary period, including the Albany Convoy Commemorative Event, which took
place in Albany, Western Australia, from 31 October to 2 November 2014. The
event incorporated the official opening of the National Anzac Centre, which
tells the stories of the men and women who left Australian shores.[33]
1.34
The Anzac Centenary Public Fund was officially launched by the Prime
Minister in December 2013 to collect donations from the business community to
provide additional funding for a range of national, state and territory Anzac
Centenary projects. The Anzac Centenary Public Fund Board superceded the former
Anzac Centenary Advisory Board from March 2014. The new board will be
responsible for assessing projects and making recommendations to the Government
for funding from the Public Fund.[34]
1.35
During the year, the Australian ballot for places at the Gallipoli 2015
Anzac Day commemorations was completed, with applicants receiving notification
of the outcome before Anzac Day 2014. The Secretary noted that:
In total, 42,273 people applied for the 3,800 double passes
available to Australians. Outside of the ballot, 400 places were allocated to
Australian secondary school children and their chaperones. States and
territories are managing the allocation of these places. Also, the Minister for
Veterans’ Affairs wrote to the widows of Australian First World War veterans in
March 2014, inviting them to attend the commemorations. If fit and well enough,
they and their carers will travel as part of Australia’s official
representative group.[35]
The year ahead
1.36
The Secretary anticipated the Department would have a busy year in
2014–15, with the official commencement of the Anzac Centenary Program and the
implementation of a range of service delivery reform initiatives aimed at
enhancing access to services and support provided by the Department. The
Secretary stated:
The Department will continue to enhance and refine its
service delivery capabilities, whilst operating within budgetary constraints.
The appropriated Budget commitment to Veterans’ Affairs remains consistent. At
the same time, and in line with government efficiency dividends, the
Department’s operating budget will continue to reduce, necessitating a need to
find more efficient ways to deliver services. DVA will strive to ensure that we
have the right level of resources in the right business areas and locations in
order to provide high-quality services to our clients.
We will continue our close work with Defence to ensure that
current and former serving members are provided with appropriate care and
support services. We will also work closely to provide support to those
transitioning out of the Australian Defence Force, with improved communication
and access methods supported by Defence.
We will continue to acknowledge and commemorate the service
of Australians by remembering significant anniversaries. In addition to our
important role in the Anzac Centenary Program, we will continue to conduct or
support Anzac Day services at a number of locations, including in Turkey,
France, Malaysia, Thailand and Papua New Guinea.[36]
Summary
1.37
The committee finds that the DVA annual report complies adequately with
all reporting requirements for a department.
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