Overview
1.1
The Senate Rural and Regional Affairs and Transport Legislation
Committee's (the committee) report on annual reports provides an overview of
the committee's examination of annual reports for the 2018–19 financial year,
tabled between 1 November 2019 and 30 April 2020. The
committee is responsible for examining the annual reports of departments and
agencies within the following portfolios:
- Agriculture,
Water and the Environment; and
- Infrastructure,
Transport, Regional Development and Communications.[1]
1.2
This is the second of the two reports on annual reports that the
committee is required to produce in 2020.
Terms of reference
1.3
Under Senate Standing Order 25(20), annual reports of departments and
agencies shall stand referred to the legislation committees in accordance with
an allocation of departments and agencies in a resolution of the Senate. Each
committee is required to:
- Examine each annual report referred to it and report to the Senate
whether the report is apparently satisfactory.
-
Consider in more detail, and report to the Senate on, each annual report
which is not apparently satisfactory, and on other annual reports which it
selects for more detailed consideration.
-
Investigate and report to the Senate on any lateness in the presentation
of annual reports.
-
In considering an annual report, take into account any relevant remarks
about the report made in debate in the Senate.
-
If the committee so determines, consider annual reports of departments
and budget-related agencies in conjunction with examination of estimates.
-
Report on annual reports tabled by 31 October each year by the tenth
sitting day of the following year, and on annual reports tabled by 30 April
each year by the tenth sitting day after 30 June of that year.
-
Draw to the attention of the Senate any significant matters relating to
the operations and performance of the bodies furnishing the annual reports.
-
Report to the Senate each year whether there are any bodies that do not
present annual reports to the Senate that should present such reports.
Purpose of annual reports
1.4
The tabling and scrutiny of annual reports by Senate committees under
Standing Order 25(20) is an important element in the process of government accountability
to Parliament. Annual reports place information about government departments
and agencies on the public record in relation to the performance, activities,
management and financial position of the reporting body. They are a primary
accountability mechanism and assist the Parliament in the effective examination
of the performance of departments and agencies, and the administration of
government programs.
Reports referred to the committee
1.5
In accordance with Standing Order 25(20)(f), this report examines the
following annual reports, tabled in the Parliament or presented out of session
to the President of the Senate and referred to the committee between 1 November
2019 and 30 April 2020:
Agriculture, Water and the Environment portfolio
- Cotton
Research and Development Corporation (CRDC)—Annual Report 2018–19;
- Fisheries
Research and Development Corporation (FRDC)—Annual Report 2018–19;
- Grains
Research and Development Corporation (GRDC)—Annual Report 2018–19;
- Regional
Investment Corporation—Annual Report 2018-19;[2]
- Rural
Industries Research and Development Corporation (AgriFutures Australia)—Annual
Report 2018-19;
- Australian
Livestock Export Corporation Limited (LiveCorp)—Annual Report 2018-19;
- Dairy
Australia Limited—Annual Report 2018-19;
- Wine
Australia—Annual Report 2018-19; and
- Torres
Strait Protected Zone Joint Authority – Annual Report 2015-16.
Infrastructure, Transport, Regional
Development and Communications portfolio
- North
Queensland Water Infrastructure Authority (NQWIA) – Annual Report 2018-19;[3]
- National
Capital Authority (NCA) – Annual Report 2018-2019;
- Australian
Pesticides and Veterinary Medicines Authority (APVMA) – Annual Report 2018-19; and
- National
Heavy Vehicle Regulator (NHVR) – Annual Report 2018-19.
Reports not examined
1.6
The committee is not obliged to report on Acts, statements of corporate
intent, surveys, policy papers, budget documents, corporate plans or errata. Accordingly,
the following documents were referred to the committee but have not been
examined in this report:
- Murray-Darling
Basin Authority – Basin Plan Annual Report 2018-19;
- Northern
Basin Commissioner – First Year Report 2019;
- Report
to the Parliament in relation to the Funding Agreement 2017-21 with the
Australian Livestock Export Corporation Limited (LiveCorp) for the financial
year 2018-19;
- Report
to the Parliament in relation to the Statutory Funding Agreement 2017-21 with
Dairy Australia Limited for the financial year 2018-19;
- Airservices
Australia – Report on Movement Cap for Sydney Airport – Third Quarter 2019 - 1
July 2019 to 30 September 2019; and
- Airservices
Australia – Report on Movement Cap for Sydney Airport – Fourth Quarter 2019 - 1
October 2019 to 31 December 2019.
Annual reporting requirements
1.7
The Public Governance, Performance and Accountability Act 2013
(PGPA Act) establishes a performance reporting framework for all Commonwealth
entities and companies. The performance framework is based on section 38 of the
PGPA Act which requires all Commonwealth entities to measure and assess their
performance.
1.8
Section 39 of the PGPA Act requires all Commonwealth entities to prepare
an annual performance statement and include those statements in their annual
reports. Entities use the annual performance statements to report on the
results achieved against the targets, goals and measures established at the
beginning of a reporting year in corporate plans and Portfolio Budget
Statements.
1.9
The performance framework established under the PGPA Act includes the
requirement for Commonwealth entities to prepare a corporate plan and annual
performance statements. The Public Governance, Performance and Accountability
Rule 2014 (PGPA Rule 2014), established under the PGPA Act, details the requirements
for the corporate plan, annual performance statements as well as the guidelines
for annual reports.[4]
1.10
Below is a summary of the legislative authority and requirements for the
different types of bodies under which annual reports are prepared:
Non-corporate Commonwealth
entities:
- PGPA
Act, section 46 and the PGPA Rule 2014, Division 3A(A);
- for
portfolio departments and executive agencies, the Public Service Act 1999, subsections
63(2) and 70(2);
- for
parliamentary departments, the Parliamentary Service Act 1999, section
65l; and
- for
statutory bodies, relevant enabling legislation.
Corporate Commonwealth entities
- PGPA
Act, section 46 and the PGPA Rule 2014, Division 3A(B); and
- for
statutory bodies, relevant enabling legislation.
Commonwealth companies
- PGPA
Act, section 97, which also refers to requirements under the Corporations
Act 2001 and the PGPA Rule, Part 3-3; and
- for
statutory bodies, relevant enabling legislation.
Non-statutory bodies
- the
annual reporting requirements are contained in the government response to the
Senate Standing Committee on Finance and Public Administration's Report on
Non-Statutory bodies.[5]
Timeliness
1.11
Standing Order 25(20)(c) requires the committee to report to the Senate
on the late presentation of annual reports. In assessing the timeliness of the
presentation of annual reports, the committee assesses the presentation against
the requirements of different categories of bodies, the PGPA Rule 2014 and
other legislative requirements.
Commonwealth entities
1.12
Section 46 of the PGPA Act requires Commonwealth entities, both
corporate and non-corporate, to prepare an annual report and provide it to the
responsible minister by the 15th day of the fourth month after the end of the
reporting period, which translates as 15 October. Certain agencies, however,
may have a specific date stipulated by their enabling legislation.
1.13
Formerly, annual reports of non-corporate entities had to be presented
by the responsible Minister to each House of Parliament on or before 31 October
each year.[6]
There is no longer an explicit stipulation for this to occur as the PGPA Rule
is silent on the matter. However, the PGPA Rule does recommend that such
reports be tabled before Supplementary Budget Estimates.
Commonwealth companies
1.14
Section 97 of the PGPA Act sets out the requirements for the provision
of annual reports of Commonwealth companies to the responsible minister. Under
subsection 97(2) of the PGPA Act a company is to provide a report:
- if the company is required by the Corporations Act 2001 to hold
an annual general meeting—the earlier of the following:
-
21 days before the next annual general meeting after the end of the reporting
period for the company;
-
4 months after the end of the reporting period for the company; and
-
in any other case—4 months after the end of the reporting period for the
company; or the end of such further period granted under subsection 34C(5) of
the Acts Interpretation Act 1901.
1.15
Subsection 97(5) of the PGPA Act states that:
(5) If the Commonwealth company is a wholly-owned
Commonwealth company, or is not required to hold an annual general meeting,
the responsible Minister must table the documents in each House of the
Parliament as soon as practicable after receiving them. In all other cases, the
responsible Minister must table the documents in each House of the Parliament
as soon as practicable after the annual general meeting of the company.
PGPA Rule 2014
1.16
The PGPA Rule 2014 states that annual reports for corporate Commonwealth
entities, non-corporate Commonwealth entities and Commonwealth companies must
comply with the Guidelines for the Presentation of Documents to the
Parliament, which is prepared by the Department of the Prime Minister and
Cabinet.[7]
1.17
The guidelines advise that for all entities:
As per past practice, it is expected that the responsible
Minister will present the report to each House of Parliament on or before 31
October. If the Senate Supplementary Budget Estimates hearings are scheduled to
occur prior to 31 October, it is best practice for annual reports to be tabled
prior to those hearings. This ensures that annual reports are available for
scrutiny by the relevant Senate standing committee.[8]
1.18
Entities reporting in accordance with their own legislation are often
required to prepare for the relevant minister their annual report 'as soon as
is practicable' after the end of the particular period to which the report
relates. The committee draws attention to subsections 34C(2) and 34C(3) of the Acts
Interpretation Act 1901, which stipulate that where no date for providing a
report to a minister is specified, the report should be presented no more than
six months after the reporting period, and the minister must provide the report
to the Parliament within 15 days after the minister receives it.
Timeliness of reports examined
1.19
The presentation of annual reports to the Parliament has two elements
with regard to timeliness: the provision of the report to the minister and the
presentation of the report to the Parliament.
1.20
Appendix 1 sets out a complete list of documents referred to the
committee during the period 1 November 2019 and 30 April 2020 (including those
not examined). This appendix includes references to the relevant legislation,
the letter of transmittal dates, the dates on which the annual reports were
sent to, and received by, the relevant minister, and the dates on which the
annual reports were tabled in both the House of Representatives and the Senate.
1.21
The committee notes that the following bodies did not present an annual
report to the entity's responsible minister by 15 October as stipulated by section
46(2) of the PGPA Act:
- Australian
Livestock Export Corporation Limited (LiveCorp);
- Cotton
Research and Development Corporation (CRDC);
- Grains
Research and Development Corporation (GRDC);
- Rural
Industries Research and Development Corporation (Agrifutures Australia); and
- National
Heavy Vehicle Regulator (NHVR).
1.22
The committee notes correspondence from the Cotton Research and
Development Corporation and the Fisheries Research and Development Corporation that
states that they presented their annual report to the responsible minister on
11 October 2019 and 15 October 2019 respectively as stipulated by section 46(2)
of the PGPA Act. However, the committee also notes that information provided by
the Department of Agriculture, Water and the Environment to the House of
Representatives upon presentation of the report indicated that the reports were
submitted on 21 October 2019.
1.23
The committee notes that the following bodies did not table their annual
reports in either the House of Representatives or the Senate prior to the
commencement of Supplementary Budget Estimates:
- Regional
Investment Corporation;
- North
Queensland Water Infrastructure Authority;
- National
Capital Authority;
- Australian
Pesticides and Veterinary Medicines Authority;
- Australian
Livestock Export Corporation Limited (LiveCorp);
- Rural
Industries Research and Development Corporation (Agrifutures Australia);
- Fisheries
Research and Development Corporation;
- Grains
Research and Development Corporation;
- Cotton
Research and Development Corporation;
- Wine
Australia; and
- National
Heavy Vehicle Regulator (NHVR).
1.24
The committee reminds all agencies that it is best practice for annual
reports to be tabled prior to the commencement of Supplementary Budget
Estimates. The committee further notes that it is possible for agencies to
table their annual reports out-of-sitting to ensure that they meet their
statutory obligations and to ensure that reports are available to senators
before Supplementary Budget Estimates. The timely tabling of annual reports allows
senators sufficient time to consider their detail before the hearings
1.25
The committee will continue to monitor the timeliness of the tabling of future
annual reports and encourages the aforementioned entities to table their annual
reports prior to Supplementary Budget Estimates.
Senate debate
1.26
Senate Standing Order 25(20) requires the committee to take into account
any relevant remarks about reports made in debate in the Senate. The committee
notes that the annual reports examined in this report have not been the subject
of comments or debates in the Senate.
Bodies not presenting annual reports to the Senate
1.27
The committee is required to report to the Senate on whether there are
any bodies which should have presented an annual report to the Senate but did
not. The committee is satisfied that there are no such bodies at this time.
Apparently satisfactory
1.28
Standing Order 25(20)(a) requires the committee to report to the Senate
on whether the annual reports of departments and agencies in its portfolio are
'apparently satisfactory'. In making this assessment, the committee considers
aspects including timeliness of presentation and compliance with the relevant
reporting requirements.
1.29
The committee considers that the majority of annual reports referred
during the reporting period were 'apparently satisfactory'. The following
chapter examines selected annual reports in further detail.
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