Preface
Introduction
1. The committee is responsible for examining annual
reports of departments and agencies within two portfolios: Defence (including
the Department of Veterans' Affairs), and Foreign Affairs and Trade.[1]
2. Under Standing Order 25(20), the committee is
required to report on annual reports tabled by 31 October each year by the
tenth sitting day of the following year, and on reports tabled by 30 April each
year by the tenth sitting day after 30 June of that year.
3. The standing order states:
Annual reports of departments and agencies shall stand referred
to the committees in accordance with an allocation of departments and agencies
in a resolution of the Senate. Each committee shall:
a) Examine each annual report referred to it and report to the Senate
whether the report is apparently satisfactory;
b) 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;
c) Investigate and report to the Senate on any lateness in the presentation
of annual reports;
d) In considering an annual report, take into account any relevant remarks
about the report made in debate in the Senate;
e) If the committee so determines, consider annual reports of departments
and budget-related agencies in conjunction with examination of estimates;
f) 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;
g) Draw to the attention of the Senate any significant matters relating to
the operations and performance of the bodies furnishing the annual reports; and
h) 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.
Role of annual reports
4. Annual reports place a great deal of information
about government departments and agencies on the public record. Accordingly,
the tabling of annual reports continues to be an important element of
accountability to Parliament. The information provided in annual reports
assists Parliament in the effective examination of the performance of
departments and agencies and the administration of government programs. Indeed,
as noted in the Requirements for Annual Reports:
Annual reports serve to inform the Parliament (through the
responsible Minister), other stakeholders, educational and research
institutions, the media and the general public about the performance of
departments in relation to services provided. Annual reports are a key
reference document and a document for internal management. They form part of
the historical record.
...
Annual reports and Portfolio Budget
Statements (PBSs) are the principal formal accountability mechanisms between
government and departments and from departments through (or on behalf of)
government to the Parliament.[2]
Assessment of annual reports
5. The annual reports are examined
by the committee to determine whether they are timely and 'apparently
satisfactory'.[3]
The committee considers whether the reports comply with the relevant
requirements for the preparation of annual reports of departments and
authorities.
6. The requirements are set
down in the following instruments:
- for portfolio departments: Public Service Act 1999,
subsections 63(2) and 70(2), and the Requirements for annual reports for
departments, executive agencies and FMA Act bodies, Department of Prime
Minister and Cabinet, 23 June 2010;
- for Commonwealth authorities and companies: the Commonwealth
Authorities and Companies Act 1997; in particular, the Commonwealth
Authorities and Companies (Report of Operations) Orders 2002; and
- for non–statutory bodies: the guidelines are contained in the government
response to the report of the Senate Standing Committee on Finance and
Government Operations on Non–statutory Bodies, Senate Hansard, 8 December 1987, vol s124, pp. 2643–45 (requirements were modified in 1987).
Excerpts of the reporting requirements
are at Appendix 3.
Annual reports considered
7. The annual reports of the following organisations
have been examined by the committee:
Defence
portfolio
Army and Air
Force Canteen Service (trading as Frontline Defence Services)
ASC Pty Ltd
Australian
Military Forces Relief Trust Fund
Australian Strategic
Policy Institute Limited
Australian
War Memorial
Defence, Department
of
Defence Force
Remuneration Tribunal
Defence Force
Retirement and Death Benefits Authority
Defence
Housing Australia
Defence
Materiel Organisation
Judge
Advocate General
Military Superannuation
and Benefits Board
Repatriation
Medical Authority
Royal
Australian Air Force Veterans' Residences Trust Fund
Royal
Australian Air Force Welfare Trust Fund
Royal Australian
Navy Central Canteens Board
Royal Australian
Navy Relief Trust Fund
Veterans'
Affairs, Department of
Veterans'
Review Board.
Foreign Affairs and Trade portfolio
Australian
Agency for International Development
Australian
Centre for International Agricultural Research
Australian
Safeguards and Non–Proliferation Office
Australian
Trade Commission
Export
Finance and Insurance Corporation
Foreign
Affairs and Trade, Department of.
General comments on the annual reports
Timeliness in tabling reports
8. It should be noted that on 19 July 2010, the Governor-General prorogued
the 42nd Parliament and dissolved the House of Representatives. An
election was held on 24 August 2010 and the 43rd Parliament sat for
the first time on 28 September 2010. As a result, the Department of Defence and
a number of statutory agencies did not table their reports until November 2010
after the due date of 31 October. The Secretary of the Department of Defence,
Dr Ian Watt AO, provided an explanation for the delay in tabling Defence's
annual report (see paragraph 1.1). A table detailing the dates relating to the
timeliness of presentation is at Appendix 2.
Comments made in the Senate
9. The committee is obliged, under Senate Standing
Order 25(20)(d), to consider any remarks made about these reports in the
Senate. There were no comments in the Senate on any of these reports.
Matters of significance
10. In accordance with SO25, the committee is to note any
significant matters relating to the operations and performance of the bodies
presenting their annual report. The committee found no matters of significance
relating to the operations and performance of the bodies presenting their
report. It draws attention, however, to findings contained in the Audits of
the Financial Statements of Australian Government Entities for the Period Ended
30 June 2010.
11. Last year the committee commented on the financial statements of the
Department of Defence. It expressed an interest in seeing progress on
outstanding matters identified by ANAO. The audit found that the Department of
Defence had resolved six moderate audit risk issues previously identified. At
the conclusion of the 2009-2010 audit, one significant and 17 moderate risk
issues remained outstanding.[4]
These matters are mentioned in detail in the relevant sections of this report.
Bodies not presenting annual reports to the Senate
12. The committee is required to
report to the Senate each year on whether there are any bodies that do not
present annual reports to the Senate and which should present such reports. The
committee is satisfied that there are no bodies, within these portfolios, which
do not meet their reporting requirements to the Senate.
Standard of reports
13. The committee found all reports to be generally of
a high standard. They effectively described the function, activities and
financial positions of the various departments and agencies. The committee
therefore finds all of the annual reports to be 'apparently satisfactory'.
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