Chapter 1


Chapter 1

OVERVIEW OF 2008-09 ANNUAL REPORTS

Introduction

1.1       Annual reports of departments and agencies are referred to Senate Committees under Senate Standing Order 25(20). The Senate Economics Legislation Committee is responsible for the scrutiny of departments and agencies in the following portfolios:

  • Innovation, Industry, Science and Research;
  • Resources, Energy and Tourism; and
  • Treasury.[1]

1.2       The structures and outcomes for each of these portfolios are summarised in Appendices 5, 6 and 7.

1.3       Standing order 25(20) requires the committee 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 the 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; and
  • report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.[2]

Purpose and requirements of annual reports

1.4       Annual reports provide information on the success (or otherwise) of departments and agencies in meeting their goals and so assist in ensuring the public accountability of government departments and agencies. Their tabling in the Parliament, and scrutiny by Senate committees, allows Parliament to make informed judgments on the executive's performance in administering government programmes.

1.5       Departments of State and Executive Agencies present their annual reports pursuant to sections 63(2) and 70(2) of the Public Service Act 1999, respectively.[3] Commonwealth authorities and companies present their annual reports pursuant to their own enabling legislation and/or sections 9 and 36 of the Commonwealth Authorities and Companies Act 1997 (CAC Act), respectively.[4] The Department of Finance and Deregulation publishes a chart on their website that shows which agencies are subject to various acts.[5] The legislation governing the annual reports of various agencies is shown in Appendices 2, 3 and 4.

1.6       The enabling legislation of some agencies may require that agency to report on matters other than those included in the guidelines, or impose different reporting requirements. The Committee's view is that such agencies, while bound by their enabling legislation, should also comply with the requirements imposed under the government's policy, to the extent that the requirements do not conflict.

Reports referred to the committee

1.7       Under Standing Order 25(20)(f), the committee is required to report on the annual reports of departments and agencies tabled in the Senate between 1 May and 31 October each year by the tenth sitting day of the following year. This year that date is 11 March 2010. The committee is also required to report on annual reports tabled in the Senate between 1 November and 30 April of the following year by the tenth sitting day after 30 June of that year.[6] 

1.8       This report examines the following annual reports for 2008-09, which were tabled in the Senate by 31 October 2009, within their required timeframe:

  • Australian Competition and Consumer Commission (ACCC)
  • Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS)
  • Australian Institute of Marine Science (AIMS)
  • Australian Nuclear Science and Technology Organisation (ANSTO)
  • Australian Office of Financial Management (AOFM)
  • Australian Research Council (ARC)
  • Australian Statistics Advisory Council (ASAC)
  • Australian Taxation Office (ATO)
  • Commonwealth Grants Commission (CGC)
  • Commonwealth Scientific and Industrial Research Organisation (CSIRO)
  • Department of Innovation, Industry, Science and Research (DIISR)
  • Department of Resources, Energy and Tourism (DRET)
  • Inspector-General of Taxation (IGT)
  • National Offshore Petroleum Safety Authority (NOPSA)
  • Reserve Bank of Australia (RBA)

1.9       Comments on these individual reports are contained in Chapter 2.

Timeliness

1.10       Standing Order 25(20)(c) requires the committee to report to the Senate on the late presentation of annual reports.

1.11       The legislative requirements for the tabling of annual reports vary between different types of agencies.[7] However, the Government's policy is 'that all annual reports should be tabled by 31 October'.[8]

1.12       The Committee notes that there are a significant number of organisations whose annual reports, while prepared and sent to the minister by October, were not tabled until November. These are listed in Table 1. (The Productivity Commission's annual report was presented to the House of Representatives on 29 October 2009.) The Committee believes these reports should have been tabled more promptly.

Table 1: Reports tabled after 30 October

Transmitted

Received by Senate

Tabled

Anglo-Australian Observatory

undated

25 Nov

Innovation Investment funds

29 Sep

25 Nov

Tourism Australia

15 Oct

18 Nov

Treasury

12 Oct

30 Oct

16 Nov

Australian Prudential Regulation Authority

19 Oct

20 Nov

23 Nov

Australian Reinsurance Pool Corporation

22 Sep

5 Nov

16 Nov

Australian Securities and Investments Commission

9 Sep

5 Nov

16 Nov

Financial Reporting Council

14 Oct

13 Nov

16 Nov

Financial Reporting Panel

1 Oct

4 Nov

16 Nov

Auditing and Assurance Standards Board

2 Oct

4 Nov

16 Nov

Australian Accounting Standards Board

2 Oct

4 Nov

16 Nov

Companies Auditors and Liquidators Disciplinary Board

1 Oct

30 Oct

16 Nov

Corporations and Markets Advisory Committee

18 Sep

4 Nov

16 Nov

Productivity Commission

undated

17 Nov

Royal Australian Mint

10 Sep

30 Oct

16 Nov

Superannuation Complaints Tribunal

11 Sep

13 Nov

16 Nov

Takeovers Panel

15 Oct

30 Oct

16 Nov

1.13       The Committee notes that the Foreign Investment Review Board only sent its 2007-08 annual report to the Treasurer on 20 July 2009 and it was tabled on 11 August 2009, over nine months late. As of end-November 2009, the 2008-09 annual report has not been tabled, so it is also overdue. A recent report by the Economics References Committee 'recommends that the Minister require FIRB to be more assiduous in producing a timely annual report'.[9] This Committee agrees with that recommendation.

1.14       The Innovation Australia annual report for 2007-08 was not published until 2009. The Committee has been advised by DIISR that the annual report for 2008-09 will probably be tabled in late February 2010. The report will discuss a range of programmes involving significant expenditures aimed at stimulating innovation and commercialisation by Australian industry. The Committee believes that it should have been prepared by 31 October 2009.

1.15       The Snowy Hydro annual report for 2008-09 is on their website, dated 26 August 2009. However it is yet to be tabled in parliament. Under the Snowy Corporatisation Act, Snowy Hydro is required to provide its report prior to its annual general meeting, and the meeting is not scheduled to occur until April 2010. The Committee believes that nonetheless it would be appropriate for the report to be tabled by end-October each year.

Remarks made in the Senate

1.16       Senate Standing Order 25(20)(d) directs the committee to take into account remarks made in the Senate when considering annual reports.

1.17       None of the annual reports considered in this report have been the subject of debate in the Senate.

Bodies not presenting annual reports to the Senate

1.18       The committee is required to report to the Senate each year under Standing Order 25 (20)(h) on whether there are any bodies not presenting annual reports to the Senate which should. The committee is satisfied that there are no bodies within the Innovation, Industry, Science and Research; Resources, Energy and Tourism; or Treasury portfolios that are avoiding their obligation.

1.19       The Committee notes that the office of the Chief Scientist is now a full-time position. The Committee suggests that, regardless of any legal obligation, the Chief Scientist should consider releasing a public annual report to inform the community about her work.

Other comments on reports

1.20       Taking into account the reporting guidelines specified by the legislation under which departments and agencies present their annual reports, the Committee considers that the reports it has examined are generally 'apparently satisfactory'.

Compliance indices

1.21       While no longer mandatory under the reporting requirements, the Committee recommends the inclusion of a compliance index in the annual reports of the larger and more complex agencies. The index preferably should include a nil return entry where the agency has nothing to report under an item. A compliance index is a useful feature of reports and considerably assists the Committee's task of assessing reports. It also assists agencies by clearly showing that their compliance obligations have been met. It can be particularly useful for agencies with reporting requirements under various Acts.

1.22       The Committee commends a number of departments and agencies for their inclusion of compliance indices in their 2008‑09 annual reports.

External scrutiny and accountability

1.23       It is required that annual reports:

... must provide information on the most significant developments in external scrutiny of the department and the department's response, including particulars of:

(a) judicial decisions and decisions of administrative tribunals that have had, or may have, a significant impact on the operations of the department; and
(b) reports on the operations of the department by the Auditor-General (other than the report on financial statements), a Parliamentary committee or the Commonwealth Ombudsman.[10]

1.24       Annual reports should be a primary reference document for parliamentarians and others looking for information about external scrutiny of government agencies. As noted above, the primary purpose of annual reports is accountability to the Parliament – it is therefore important that details about external scrutiny are included in a clear manner in annual reports.  It is particularly important that details about parliamentary scrutiny are included in annual reports, including appearances at Senate estimates hearings (which are the subject of bi-annual reports to the Senate).

1.25       The committee commends the Australian Taxation Office in particular for providing comprehensive details relating to external scrutiny and accountability in its 2007-08 annual report.

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