CHAPTER 1
ANNUAL REPORTS OF DEPARTMENTS
1.1
The annual reports of the following departments for the financial year
2013-14, were referred to the committee for examination and report:
-
Attorney-General's Department; and
-
Department of Immigration and Border Protection.[1]
Attorney-General's Department
Tabling of report
1.2
The 2013-14 annual report was received by the Senate on 10 October 2014
and tabled in the Senate on 27 October 2014. The report was available to senators
for the Supplementary Budget Estimates 2014-15 hearings on 20 November and
11 December 2014.
Secretary's review
1.3
The Secretary's review for 2013-14 included an overview of the changes
to the department's portfolio. After the September 2013 election, the
government transferred the cultural affairs and arts portfolio to the Attorney-General's
Department, and most Indigenous community safety and justice programmes were
transferred to the Department of the Prime Minister and Cabinet.[2]
Further details on these changes are available in the Changes to the
portfolio structure section of this report.
1.4
The Secretary identified a number of achievements for the year. The
first achievement highlighted was the department's contribution to the
whole-of-government repeal of redundant legislative instruments and amending
Acts made from 1901 to 1969.[3]
The review also identified the department's work developing new
counter-terrorism policy and legislation; the roll-out of a self-representation
service in registries of the Federal Court and Federal Circuit Court; a summary
of the Safer Streets Programme; and the department's G20 work in combating
corruption. Changes were also made to the Cultural Gifts Programme that
resulted in a reduction in the time taken to endorse donations.[4]
The secretary's review also highlighted the department's work and success on
the Whaling in the Antarctic (Australia v Japan: New Zealand
intervening) case at the International Court of Justice.[5]
1.5
The outlook for 2014-15 identified the 'evolving threat of terrorism' as
one of the department's most important tasks and the importance of protecting Australia's
telecommunication infrastructure. The secretary also highlighted natural
disaster funding, intercountry adoption, reforms to the Copyright Act 1968
and a review of the opera in the outlook for 2014-15.[6]
Changes to the portfolio structure
1.6
The annual report outlines changes made to the portfolio under the
Administrative Arrangements Order of 18 September 2013. The government
transferred cultural affairs, the arts and management of government records to
the Attorney-General's portfolio. Responsibility for Indigenous law and justice
was transferred to the Department of the Prime Minister and Cabinet. Customs
and border protection was transferred to the Department of Immigration and
Border Protection. In addition, the Insolvency and Trustee Service Australia
was renamed and is now known as the Australian Financial Security Authority.[7]
Performance reporting
1.7
The annual report's performance review addressed the key performance
indicators (KPIs) of each of the department's programs, as listed in the
Portfolio Budget Statements (PBS) and Portfolio Additional Estimates Statements
(PAES).[8]
The report included a comprehensive account of the department's achievements
and the work progress within each program. However, as identified in previous committee
reports on annual reports, discussion and analysis of departmental performance
against KPI targets within individual programs was limited and did not adequately
consider the department's effectiveness in achieving its stated outcomes.[9]
The committee draws the department's attention to the Requirements for Annual
Reports that state, '[d]escriptions of processes and activities should be
avoided. Rather, reporting should be aimed at providing an assessment of how
far the agency has progressed towards the achievement of its stated outcomes'.[10]
1.8
Similar to previous reports, the committee notes that the performance
information provided in the department's annual report did not include specific
program objectives or deliverables contained in the PBS and PAES.[11]
The committee again suggests including program objectives, where possible immediately
before a narrative report of the major achievements of each program, to provide
context of how these achievements contributed to the program's objective. The
inclusion of such information would contribute to achieving a 'clear read' when
comparing the annual report and the PBS and PAES.
1.9
The tabular presentation of KPIs was consistent with the format used in previous
annual reports and was accessible and informative. The report assessed the KPIs
as being 'achieved', 'substantially achieved', 'partially achieved' or 'not
achieved', with a brief explanation supporting each result.[12]
The use of categories such as these to assess the department's effectiveness in
achieving each KPI is particularly helpful when addressing performance against qualitative
KPIs. It facilitates direct comparisons of KPI results within and amongst
programs. A number of programmes have had their KPIs changed in the 2013-14
annual report and trend information was therefore not available. The new KPIs
in the 2013-14 report are more broadly defined than the KPIs in previous annual
reports.
1.10
The committee would like to draw the department's attention again to the
use of quantitative KPI targets. The use of quantitative KPI targets has been
utilised in some programmes, such as programme 2.1, and in this instance it
simplifies the performance monitoring process. The committee recommends the
department applies this approach to the assessment of its other programs;
however, it also acknowledges the difficulty in using quantitative KPI targets
to assess the effectiveness of departmental programs that involve policy development.
1.11
The committee reminds the department of best practice for the
development of KPIs, which is outlined in the Australian National Audit
Office's (ANAO) Development and Implementation of Key Performance Indicators
to Support the Outcomes and Programs Framework:
The tendency for entities to rely on qualitative KPIs reduces
their ability to measure the results of program activities over time. A mix of
effectiveness KPIs, that place greater emphasis on quantitative KPIs and
targets, would provide a more measureable basis for performance assessment.
Targets, in particular, should be used more often to express quantifiable
performance levels to be attained at a future date. By enabling a more direct
assessment of performance, the greater use of targets would assist to clarify
and simplify the process of performance monitoring.[13]
Financial performance
1.12
The department's overall financial performance was briefly outlined in
the Secretary's review. The department reported an operating deficit of $18.213 million
for 2013-14. This deficit compares to an operating deficit of $19.779 million
in 2012-13. The department attributes unfunded depreciation and
amortisation expenses of $25.753 million for the deficit.[14]
1.13
The committee notes that administered expenses for 2013-14 were $952.795
million, compared to $626.881 million in 2012-13. Portfolio agency CAC Act
bodies received $279.414 million in payments and arts programmes received $129.444
million. The Australian Government Disaster Recovery Payments programme only received
$2.442 million in 2013-14, a significant reduction compared to the $170.176
million received in 2012-13.[15]
Conclusion
1.14
The committee would like to draw attention to its earlier comments on
performance reporting and KPIs. The report includes all 'suggested' items in
addition to 'mandatory' requirements.[16]
The committee considers the report to be 'apparently satisfactory'.
1.15
Mr Roger Wilkins AO finished his term as Secretary of the Attorney-General's
Department on 31 August 2014. The committee would like to thank Mr Wilkins
for his contribution to the department.
Department of Immigration and Border Protection
Tabling of report
1.16
The department's annual report for 2013-14 was received by the Senate on
17 October 2014 and tabled on the 27 October 2014. As a result, the report
was available to the committee for examination during the Supplementary Budget
Estimates hearings on 20 October and 27 November 2014.
Secretary's review
1.17
The Secretary's review described the department's development and progress
in 2013-14, highlighting major initiatives and challenges. The review noted the
consolidation of the department with the Australian Customs and Border
Protection Service (ACBPS) and will result in the creation of the Australian
Border Force (ABF). The ABF will operate as the department's only operational
border organisation, and the date set for the consolidation is 1 July 2015.[17]
1.18
The department managed over 35 million movements across Australia's
borders, with an increase of 6.8 per cent from the previous year. The 2013-14
Migration Programme had 190 000 places, maintaining the same number of places
that were available in 2012-13.[18]
1.19
The department's Humanitarian Program granted 13 768 permanent visas. The
Women at Risk programme issued 1042 visas in 2013-14 and, since 1989, more than
14 500 vulnerable women and their children have received this visa.[19]
1.20
With the change of government in September 2013, the department has been
a part of the Operation Sovereign Borders Joint Agency Task Force (OSB JATF).
Since the commencement of OSB JATF, the department has seen a significant
decrease in the number of illegal maritime arrivals (IMAs). Consequently, the
department has been able to implement savings with the closure of five
detention facilities in 2013-14. A further four centres will be closed by 30
June 2015.[20]
1.21
Internationally, the department has continued to work with the
governments of Nauru and Papua New Guinea (PNG) to manage the offshore
processing centres. The Nauru and PNG governments, as well as other states in
the region, continue to participate in the implementation of regional
resettlement arrangements for refugees.[21]
Office of the Migration Agents
Registration Authority
1.22
The department presented the Office of the Migration Agents Registration
Authority's (MARA) performance results against deliverables and KPIs that were
consistent with those provided in the PBS and PAES.[22]
The department reported that the Office of the MARA met or exceeded its
targets in three of the four KPIs.[23]
1.23
The Office of the MARA failed to meet its KPI target of 95 per cent for
the '[p]ercentage of complete registration applications finalised within
service standards'. For this KPI, the 2013-14 actual result was 89.3 per cent[24];
however, the department noted that the introduction of a new information
technology platform had negatively impacted on this result. The Office of the
MARA had managed to track within targeted service standards from 30 June 2014
onwards.[25]
The '[p]ercentage of complete complaints finalised within services standards' KPI
exceeded its target of 90 per cent, to achieve 90.2 per cent.[26]
The '[p]ercentage of migration agents monitored' is a new indicator introduced
in 2013-14. For this KPI, the Office of the MARA also exceeded its target of five
per cent, achieving a result of eight per cent.[27]
1.24
The number of complaints to the Office of the MARA increased in 2013-14,
from 407 in 2012-13[28]
to 433 in 2013-14.[29]
There was also a decrease in the number of complaints the Office of the MARA
finalised in 2013-14: 398 complaints were finalised in 2013-14[30],
less than the 527 complaints finalised in 2012-13.[31]
The Office of the MARA met service standards in regards to the time taken to
finalise a complaint: 77.8 per cent of complaints were finalised in less than
six months, and 94.3 per cent were finalised in less than 12 months.[32]
Performance reporting
1.25
The department's performance information was comprehensive and
well-presented, and included outcome strategies, objectives, deliverables, KPIs
and performance results at each program level. The annual report's information
was arranged logically, and the outcomes and program structure were presented
in a straightforward format. This structure allows the reader to easily access
and compare the information in the annual report to the PBS and PAES.[33]
As a result, the performance reporting provided a 'clear read' between the annual
report and the relevant PBS and PAES.[34]
1.26
Due to the changes made to the Administrative Arrangements Order issued
on 18 September 2013, the government transferred a number of outcomes to the
Department of Social Services and the Department of Industry.[35]
These changes have altered the deliverables and KPIs for outcome five and six
and, therefore, do no align with the information available in the PBS 2013-14
and the PAES 2013-14.
1.27
The report contained a performance review of each program, providing an assessment
of how far the department has progressed towards achieving its stated outcomes.
Each program review covered major achievements and challenges for the
department and included meaningful qualitative and quantitative analysis of migration
programs and visa categories, in the form of detailed statistics and supporting
discussion. Where possible, historical trends of KPI performance over the last
three reporting periods accompanied actual results for 2013-14.[36]
1.28
In 2013-14, the department reported that the percentage of onshore
protection visa applications decided within 90 days in accordance with
legislation[37]
was
7 per cent, falling significantly below the target of 100 per cent.[38]
This result is a further decline from the 51 per cent achieved in 2012-13.[39]
The annual report notes:
The department's low level of compliance with the 90-day
processing timeframe over the 2013-14 year reflects increases in the number of
applications received and the implementation of Ministerial Direction 57 in
July 2013, which saw Protection visa applications lodged by lawful arrivals
prioritised for processing.[40]
1.29
The median number of days taken to decide primary cases continued to
rise from 89 days in 2012-13 to 248 days in 2013-14. The department's
explanation for this increase is 'the timeframe has been influenced by the
effect of changes to IMA processing policy'[41]
and:
In 2013-14, 96 per cent of Protection visa decisions that
took more than 90 days were the result of department-related delays caused by
the increased number of arrivals, arrangements for allowing people to apply and
the complexity of some cases that required additional investigation.[42]
1.30
There was also a significant reduction in the number of protection visa
applications lodged and granted by the department in 2013-14: 10 624
applications were lodged with the department and of that total, only 978 IMA protection
visa applications. In the previous year, the department received 16 923[43]
applications, which consisted of 8443 IMA Protection visa applications.[44]
The number of protection visas granted to IMAs and non-IMAs in 2013-14 continued
the trend seen in previous years. The department issued 2752 visas in 2013-14,
compared to 7508 visas issued in 2012-13. Only 545 protection visas were issued
to IMAs during this period, significantly lower than the 4994 protection visas
granted in 2012-13.[45]
Financial performance
1.31
The department's 2013-14 financial performance was reported as 'strong
despite the challenges posed by increased activity and complex operational
demands'.[46]
1.32
An operating deficit of $98.8 million was reported in 2013-14 compared
to $87.7 million in 2012-13.[47]
The department incurred $120.1 million in depreciation and amortisation
expenses. Government funding for depreciation and amortisation expenses ceased
in 2010-11; continued funding for these items would have resulted in a $14.4
million surplus in 2013-14.[48]
Conclusion
1.33
The annual report closely adheres to the Requirements for Annual Reports
and provides a detailed analysis of departmental performance and operations
during the year. The committee considers the report to be 'apparently
satisfactory'.
1.34
Mr Martin Bowles was appointed Secretary of the Department of Health as
of 13 October 2014. The committee would like to thank Mr Bowles for his
contribution as Secretary for the Department of Immigration and Border
Protection.
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