Chapter 2

Annual reports of agencies

Annual reports from the Attorney-General's portfolio

2.1
The annual reports of the following agencies within the Attorney-General's portfolio for the financial year 2019-20 were referred to the committee for examination and report:
the Independent National Security Legislation Monitor (the INSLM); and
the High Court of Australia.
2.2
Neither body is subject to the reporting obligations under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), but both have mandatory reporting obligations arising out of their enabling legislation.

Independent National Security Legislation Monitor

2.3
The INSLM's annual report was tabled in the House of Representatives and the Senate on 15 February 2021.
2.4
This was the first annual report of the fourth INSLM, Mr Grant Donaldson SC, whose term commenced on 1 July 2020. During the relevant reporting period (1 July 2019 to 30 June 2020), Dr James Renwick CSC SC served as the INSLM.

Reporting obligations

2.5
The INSLM is a Statutory Office Holder established under the Independent National Security Legislation Monitor Act 2010 (the INSLM Act).
2.6
The INSLM's annual reporting obligations are set out in section 29 of the INSLM Act as follows:
(1)
The Independent National Security Legislation Monitor must prepare and give to the Attorney-General a report (an annual report)
(a)
relating to the performance of the Monitor's functions as set out in paragraphs 6(1)(a) and (b); and
(b)
containing such details relating to the performance of the Monitor's function as set out in paragraph 6(1)(c) as the Monitor considers appropriate.
2.7
Section 6 of the INSLM Act outlines the functions of the INSLM as follows:
(1)
The Independent National Security Legislation Monitor has the following functions:
(a)
to review, on his or her own initiative, the operation, effectiveness and implications of:
(i)
Australia's counter-terrorism and national security legislation; and
(ia)
without limiting subparagraph (i), Division 105A of the Criminal Code and any other provision of that Code as far as it relates to that Division; and
(ii)
any other law of the Commonwealth to the extent that it relates to Australia's counter‑terrorism and national security legislation;
(b)
to consider, on his or her own initiative, whether any legislation mentioned in paragraph (a):
(i)
contains appropriate safeguards for protecting the rights of individuals; and
(ii)
remains proportionate to any threat of terrorism or threat to national security, or both; and
(iii)
remains necessary;
(c)
if a matter relating to counter‑terrorism or national security is referred to the Monitor by a Minister under section 7—to report on the reference.
2.8
The annual report recorded that during the financial year, the INSLM completed two reviews, of the Australian Citizenship Act 2007 (Cth) and Telecommunications and Other Legislation Amendment (Assistance and Access) Act 2018 (Cth). The reports of these reviews, including recommendations, are accessible on the INSLM website.1
2.9
The annual report also recorded that the INSLM initiated a review of the National Security Information (Criminal and Civil Proceedings) Act 2004 (Cth).2
2.10
In accordance with section 6(1)(b) of the INSLM Act, the annual report considered matters including the National Terrorism Threat Level, domestic threats, external threats and foreign interference.3

Conclusion

2.11
The committee considers this annual report to meet the reporting obligations under section 29 of the INSLM Act, and therefore finds it to be 'apparently satisfactory'.

High Court of Australia

2.12
The annual report of the High Court of Australia (the High Court) was tabled in the Senate on 7 December 2020, having been tabled in the House of Representatives on 3 December 2020.

Reporting obligations

2.13
The High Court is an 'agency' within the Attorney-General's portfolio but it is not a Commonwealth entity under the PGPA Act due to its status under its enabling legislation.4
2.14
The High Court's annual reporting obligations are set out in section 47 of the High Court of Australia Act 1979 (the High Court Act) as follows:
(1)
The High Court shall, as soon as practicable after 30 June in each year, prepare and submit to the Minister a report relating to the administration of the affairs of the Court under section 17 during the year that ended on that 30 June, together with financial statements in respect of that year in such form as the Finance Minister approves.
2.15
Section 17 of the High Court Act empowers the High Court to 'administer its own affairs subject to, and in accordance with, [the] Act'.5 It states:
(2)
The Court has power for the purposes of the Court to do all things that are necessary or convenient to be done for or in connection with the administration of its affairs and, without limiting the generality of the foregoing, has power:
(a)
to enter into contracts;
(b)
to acquire, hold and dispose of real and personal property;
(c)
to take on hire, to exchange, and to accept on deposit or loan, library material, and also furnishings, equipment and goods needed for the purposes of the Court;
(d)
to control and manage any land or building occupied by the Court and any adjacent land or building that is declared by Proclamation to be part of the precincts of the Court;
(e)
to accept gifts, devises and bequests made to the Court upon trust and act as trustee of moneys or other property vested in the Court upon trust; and
(f)
to do such other things as it is authorized by this Act to do.

Administration of the affairs of the Court

2.16
The annual report states that the High Court entered into or made payments under 21 consultancy contracts with a total value of $323,522 (including GST).6
2.17
The annual report also identifies a number of other projects undertaken during the period relating to human resources, asset and information management, including:
various mitigation and monitoring strategies within the Sydney, Canberra and Melbourne buildings in response to the Victoria, NSW and ACT bushfires;7
changes within the Court's premises in response to the COVID-19 pandemic;8
the establishment of a new security screening point at the main entrance on level 2 of the Canberra building;9 and
the deployment of new laptops and desktops for the High Court's operating environment using Windows 10 and Office 365.10

Financial statements and inspection by the Auditor-General

2.18
In accordance with subsection 47(1) of the High Court Act, the financial statements for the relevant reporting period are incorporated at Part 5 of the annual report.
2.19
In 2019-20, the High Court recorded a deficit of $8.264 million, with an income (including revenue from appropriations) of $19.065 million and operating expenses amounting to $19.053 million.11 The annual report records that the High Court's underlying operational result (excluding unfunded depreciation) was a deficit of $1.045 million.12 The annual report further notes that the High Court received an equity injection of $5.301 million including departmental capital budget.13
2.20
Subsection 47(2) of the High Court Act requires the Auditor-General to inspect the High Court's financial statements and provide a report to the minister on:
(a)
whether, in his or her opinion, the statements are based on proper accounts and records;
(b)
whether, in his or her opinion, the statements are based on proper accounts and records;
(c)
whether the statements are in agreement with the accounts and records;
(d)
whether, in his or her opinion, the receipt, expenditure and investment of moneys, and the acquisition and disposal of assets, by the Court during the year have been in accordance with this Act; and
(e)
as to such other matters arising out of the statements as the Auditor‑General considers should be reported to the Minister.
2.21
Section 47(3) requires the minister to table the annual report, together with the financial statements and the Auditor‑General's report 'before each House of the Parliament within 15 sitting days of that House after their receipt by the Minister'. The report was received by the Attorney-General on 23 November 2020, and was tabled in the House of Representatives on 3 December 2020 and in the Senate on 7 December 2020, therefore fulfilling the requirements of that provision.
2.22
The Auditor-General's report was submitted to the minister on 8 September 2020, and is available at Part 5 of the annual report. It makes no findings of non-compliance with either reporting or expenditure obligations under the High Court Act.14

Conclusion

2.23
The committee considers the annual report to meet the reporting obligations under section 47 of the High Court Act, and therefore finds it to be 'apparently satisfactory'.
Senator the Hon Sarah Henderson
Chair

  • 1
    Independent National Security Legislation Monitor Annual Report 2019-20, pp. 5-6.
  • 2
    Independent National Security Legislation Monitor Annual Report 2019-20, p. 7.
  • 3
    Independent National Security Legislation Monitor Annual Report 2019-20, pp. 7-11.
  • 4
    Department of Finance, Flipchart of PGPA Act Commonwealth entities and companies (187), 16 July 2021, https://www.finance.gov.au/sites/default/files/2021-07/Flipchart%2016%20July%202021.pdf
    (accessed 28 July 2021). See also, section 10(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) which expressly identifies the High Court as not falling within the definition of a 'Commonwealth entity'.
  • 5
    High Court of Australia Act 1979 (High Court Act), s 17(1).
  • 6
    High Court of Australia 2019-20 Annual Report, p. 27.
  • 7
    High Court of Australia 2019-20 Annual Report, p. 27.
  • 8
    High Court of Australia 2019-20 Annual Report, p. 28.
  • 9
    High Court of Australia 2019-20 Annual Report, p. 29.
  • 10
    High Court of Australia 2019-20 Annual Report, p. 29.
  • 11
    High Court of Australia 2019-20 Annual Report, p. 26.
  • 12
    High Court of Australia 2019-20 Annual Report, p. 26.
  • 13
    High Court of Australia 2019-20 Annual Report, p. 26.
  • 14
    High Court of Australia 2019-20 Annual Report, p. 32.

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