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Foreign Affairs, Defence and Trade Legislation Committee - Senate Standing - Examination of annual reports - No. 1 of 2012, March 2012


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Australian Senate

Senate Legislation Committees

Reports on the examination of annual reports No . 1 of 2012

March 2012

Australian Senate

Senate Legislation Committees

Reports on the examination of annual reports

No. 1 of 2012

March 2012

©Parliament of the Commonwealth of Australia 2012

ISSN 1834-4054

This document was printed by the Printing Unit, Department of the Senate, Parliament House , Canber ra.

TABLE OF CONTENTS

Community Affairs Committee

Annual reports (No.1 of 2012), dated Ma rch 2012 ............ ........................ 1

Economics Committee

Annual reports (No . 1 of 2012), dated Ma rch 2012 ......... ....... ...... ............ 25

Education, Employment and Workplace Relations Committee

Annual reports (No. 1 of 2012), dated March 2012 ............ ....... ....... ........ 75

Environment and Communications Committee

Annual reports (No. 1 of 20 12), dated March 2012 .......... .......... ........ ...... 99

Finance and Pub lic Administration Committee

Annual reports (No . 1 of 2012), dated March 2012 ............. ................... 121

Foreign Affairs, Defence and Trade Committee

Annual reports (No. 1 of 2012), dated March 2012 .......... ..... ................. 155

Legal and Constitutional Affairs Committee

Annual reports (No . 1 of 2012), dated March 2012 ......... ........... ............ 197

Rural and Regional Affairs and Transport Committee

Annual reports (No. 1 of 2012), dated March 2012 .................. .............. 233

The Senate

Community Affairs

Legislation Committee

Annual reports (No. 1 of2012)

March 2012

©Commonwealth of Australia 2011

ISBN 978-1-74229-581-7

This document was produced by the Senate Community Affairs Committee Secretariat and printed by the Senate Printing Unit, Parliament House, Canberra

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Membership of the Committee

Members

Senator Claire Moore, Chair ALP , Queensland

Senator Rachel Siewert, Deputy Chair

Senator Judith Adams

AG, Western Australia

LP, Western Australia

Senator Carol Brown ALP, Tasmania

Senator Mark Furner ALP, Queensland

Senator Bridget McKenzie Nationals, Victoria

Substitute member

Senator Sue Boyce LP, Queensland

For Senator Judith Adams (from 7 February to 30 \1arch 20 12)

Secretariat Dr Ian Holland Ms Janice Webster Mr Dylan Hanington

SuiteS 1.59 Parliament House CANBERRA ACT 2600

Committee Secretary Senior Research Officer Administrative Officer

Telephone: Fax: (02) 6277 3515 (02) 6277 5829 Email: communitv.affair s.sen({l. :aph.!!ov.au

Ill

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Table of Contents

Membership of the Committee ........................................................................ iii

Chapter 1 ............................................................................................................... 1

Overview .................................................................................................................... 1

Tenns of Reference ...... ..................... ........ ...... ........ ......... ...... ............ ...... .............. 1

Requirements ..................... ....... ............................ ........ ..... ......... ...... ............... ....... 2

Tin1eliness of rep oris ................................................ ............................................. . 2

General con1n1ents .................................................................................................. 3

Specific comments: annual reports of departments ................................................ 5

Appendix 1 ........................................................................................................... 9

List of departments, agencies and bodies required to present annual reports to the Senate ................................................................................................. 9

Families, Housing, Conmmnity Services and Indigenous Affairs potifolio .......... 9

Health and Ageing portfolio ................................................................................. 13

Human Services portfolio ..................................................................................... 17

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Chapter 1

Overview

1.1 The committee is responsible for examining the aruma] reports of departments and agencies of three portfolios:

" Health and Ageing (DoHA);

" Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) ; and

" Human Services (DHS) .

Terms of Reference

1.2 Under Senate Standing Order 25(20), arumal reports of departments and agencies shall stand referred to the legislation conm1ittees 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 repmt 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 fumishing the annual reports; and

(h) repmt 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.

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Requirements

1.3 This rep011 was prepared pursuant to Standing Order 25(20) relating to the consideration of annual reports by committees. The Senate Order requires that the committee examine the reports refened to it to detennine whether they are timely and satisfactory . In fom1ing its assessment the committee has considered whether the reports comply with the relevant legislation and guidelines in preparation of annual reports:

" for departments of state and executive agencies these are: the Public Service Act 1999, subsections 63(2) and 70(2), and the Requirem ents for Annuo/ Report.. for D epartments. £.yecuth ∑e Agencies and FM4 Act Bodies, Department of Prime Minister and Cabinet, updated June 2010 and approved by the Joint Conm1ittee of Pubhc Accounts and Audit on 23 June 20 I 0;

" for Commonwealth authorities and companies: the CommonH∑ea/th Authorities and Companies Act 1997 (the CAC Act), sections 9, 36 and 48, and the Commomvealth Authorities and Companies (Report of Operations) Orders 2008 (CAC Orders)∑ and

" for non-statutory bodies: the requirements are contained in the Govenm1ent response to the report of the Senate Standing Committee on Finance and Govenm1ent Operations on Non-statutory bodies, Senate Hansard, 8 December 1987. pp 2643-45.

1.4 A table listing the annual reports of departments and agencies tabled in the Senate (or presented out of session to the President of the Senate), wh ich have been referred to the committee for examination, can be found at Appendix 1.

Timeliness of reports

1.5 Under Standing Order 25(20)(c), the committee must also report to the Senate on any lateness in the presentation of annual repmts. The Requirem ents for A nnual Reports published in 2009 state that:

A copy of the annual report is to be presented to each House of the Parliament on or before 31 October in the year in which the report is g1ven ...

Where an agency's own legislation provides a timeframe for its annual report , for example 'within six months' or 'as soon as practicable after 30 June in each year', that timefi∑ame applies. 1

1.6 The majority of annual reports referTed to the committee were tabled within the specified period or shmtly thereafter. The committee acknowledges that the following organjsations provided notification that their reports wou ld be delayed:

Dep artment of the Prime Minister and Cabinet. Requirem cntsfor Annual Reports. June 2009, Part 1. Section 4.

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" Anindilyakwa Land Council;

" Wreck Bay Aboriginal Community Council; and

" Northern Land Council.

1. 7 The Wreck Bay Aboriginal Community Council and Anindilyakwa Land Council wrote to the Minister for Families, Housing Community Services and Indigenous Affairs requesting extensions until 15 November 2011 and 19 December 2011 respectively. The Minister granted the extensions, and the request and her reply to Anindilyakwa Land Council were tabled on 21 November 2011.1 The request of the Wreck Bay Aboriginal Conununity Council, and subsequent reply from the Minister, were tabled on 7 February 2012. Anindilyakwa Land Council subsequently requested a second extension , and the request and the Minister's response were tabled on 7 February 2012.3 The Northern Land Council was granted a similar extension to II November 20 1I, however no report has been provided to Parliament , and the committee has not been advised by the Not1hem Land Council of the expected tabling date.

1.8 The conunittee notes a number of other late reports, for which no extension was sought nor granted, which it will examine in its second Repm1 on Atmual Repot1s this year.

General comments

1.9 This report considers twenty-one 4

annual reports received during the period of

1 May 2011 to 31 October 2011. Six reports have been assessed to detem1ine whether or not their contents satisfy the detailed legislative requirements as set out in the CAC Act. Nine repm1s have been checked to ascertain whether or not their contents satisfy the forty-five mandatory criteria for inclusion as set out in the FMA Act. Three of the remaining six reports are incorporated into the appendices of Departments' reports , two are statutory office holders and one is a regulatory scheme.

1.1 0 Appendix A lists the departments, agencies and bodies required to present

annual reports under the three portfolios and the dates on which their reports were tabled. Reports tabled on or after 1 November 2011 will be considered in the comnuttee's second Report on Annual Reports.

1.11 The conu11ittee is pleased to note that generally the annual reports examined adhere to the relevant reporting guidelines in a satisfactory manner. The reports

2 Journals ofthe Senate. 2011. p. 1862.

3 Journals ofrhe Senate. 2012, p. 2010.

4 Department of Human Services. Medicare Australia and Centre link are considered as one although three separate reports were received for the period 2010- 11. In 2011- 12, the two services agencies' reports will be incorpor ated into DHS' annual report.

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continue to maintain high standards of presentation and provide a comprehensive range of information on their functions and activities .

1.12 Notwithstanding the satisfactmy nature of the reports , the conu11ittee makes the following suggestion s to the FaHCSIA , DoHA and DHS departments and agencies reporting under the FMA Act:

" Departments and agencies should take care to illustrate clearly the OHS initiatives, and the outcomes achieved as a result of such initiatives undertaken over the period in their annual report.

" Departments and agencies should ensure that perfom1ance pay is reported upon in a sufficiently detail eJ manner.

" While it is suggested rather than mandatory, departments and agencies are reminded that a statement noting that Commonwealth Fraud Control Guidelines have been complied with should be included in the Letter of Transmittal. Most such letters do not include this statement. The Letter of Transmittal prepared by the NHRMC is a good example of its inclusion .

1.13 The committee makes the fo1lowing suggestions to the FaHCSIA , DoHA and DHS statutory authorities and companies reporting under the CAC Act:

" Repot1s received from statutory authorities and companies generally included useful, substantial infom1ation about the core activities of the authority. However, statutory authmities and companies are reminded that the C AC Act also requires them to provide a range of additional details-such as the name of their relevant Minister over the period, any Ministerial directions, and the primary location of their facilities-in their reports.

" Statutory authorities and companies reporting under the CAC Act are not specifically required to include a compliance index, nor an alphabetical index, and most simply provide a thematic contents page. For ease of reference , the committee suggests that agencies repm1ing under the C AC Act would be well advised to include at least an alphabetical index at the end of their annual reports.

1 .14 The committee suggests the pm1folio departments, agencies, statutmy authorities and companies integrate these suggestions into their 2011-2012 annual reports .

Comments made in the Senate

1 .15 Under Senate Standing Order 25(20)( d), the committee considers remarks made about these report s in the Senate. Senator Helen Polley, Deputy Government Whip, moved a motion on 13 October 20 11 that the Senate take note of DoHA's annual report. 5 The Senator continued her remarks in relation to the current work of

5 Senate Han sard, 13 October 20 I I. pp 7434-7435.

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the government in the area of aged care refmm. Senator Stephen Parry, Deputy President of the Senate, also rose in relation to DoHA's annual report on I November 2011. Senator Parry noted his appreciation for the report, and made further comments about population health- specifically the immunisation program- in the context of

that report. 0

1.16 While not nsmg to speak specifically on the annual repmt, Senator Anne Urquhart cited statistics in relation to organ and tissue donation on 31 October 2011, two sitting days after the tabling of the annual report from the Australian Organ and Tissue Donation and Transplantation Authority. Senator Urquhart noted that 201 0 was a 'record year' for organ donation and urged Australians, via the chamber, to consider

registration as an organ donor. 7

Bodies not presenting annual reports to the Senate

1.17 The committee is required to report to the Senate on whether there are any bodies which do not present annual reports to the Senate and which should present such reports. The committee considers that there are no bodies within its portfolio areas that do not meet their reporting requirements to the Senate in this regard.

Specific comments: annual reports of departments

Department of Fanlilie.fi, Housing, Community Services and Indigenous Affairs

1.18 The annual report of the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) provides a comprehensive review of the Department's operations over the period.

1.19 Significant initiatives for which the Department had responsibilit y in 20 I 0-11 included the implementation of the Paid Parental Leave scheme and reform to the Family Support Program. The Paid Parental Leave scheme commenced on 1 January 2011, providing eligible working parents with up to 18 weeks pay of the national minimum wage. 8 The Department estimates that around 148 000 families will be eligible to receive the payment each year. 9 The Department also worked throughout the period to improve the family payment system. The Family Support Program conm1enced on 1 July 2011, increasing the flexibility of advance payments of the Family Tax Benefit Part A. 10

6 Senate Hansard. 31 October 2011. pp 8041-8042.

7 Senate Hansard. 3 t October 2011. pp 764 7-7648.

8 D epartment of families, Housing, Community Services and Indigenous Affairs. Amwa! Report 1010 1011. p. 35.

9 Depattment of Families. Housing. Community Services and Indigenous Affairs , Annual Report 1010-1011. p. 2.

10 Department of Families. Hou sing. Community Services and Indigenou ∑Affairs, Annual Report 1010-1011. p. 3.

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1.20 In addition, the Department was closely involved in the development of the government response to the Productivity Conunission's inquiry Disability Care and Suppmt, input towards the Carer Recognition Act 2010 and the development of the National Disability Strategy.

1.21 The Department noted that it continues to work on the government response to the Productivity Conm1ission's repmt, which particularly addresses the costs, benefits and feasibility of a National Disability Insurance Scheme (NDIS).11 With respect to carers, the Department's report stated that following the release of the National Carer Strategy , FaHCSIA will work towards its implementation to promote social economic and community activities for carers. 12 The Secretmy's Review noted that National Disabihty Strategy is the first occasion on which a national approach has been taken to disability issues:

For the first time, all levels of government have committed to a unified , national approach to disability issues ...

The strategy establishes a 1 0-year refmm agenda for governments, industry and the community to address the barriers faced by Australians with disability. It aims to create better services , programs and community infrastructure to ensure that people with disability can access quality education, health care and job support, as well as buildings , transport and media, so that people with disability can participate as equal citizens .13

1.22 The committee welcomes these policy developments and looks forward to the Depattment repmting positive concrete outcomes as a result of the implementation of complementary, practical measures in future annual repmts.

Department of Health and Ageing

1.23 The Department of Health and Ageing (DoHA) annual report provides a detailed , well-structured and outcome-focused review of the Department's functions and operations in the financial year 20 I 0-11.

1.24 The Secretary's Review noted that during 201 0- 11 the Department was closely involved in the implementation of two intergovernmental agreements: the National H ealth and Hospitals Neh1 'ork Agreement (NHHN) and the National PartnershzjJ Agreem ent on Improving Public Ho .~p ital Services (National Partnership Agreement).

14 In addition, the Department completed work towards the National

11 Dep artment of Families. Hou ∑ ing, Community Services and Indigenous Affairs, Annual Report 2010-2011. p. 98.

12 Dep a1tme nt of Fami I ies. H ousing, Community Services and Indigenous Affairs . A nnual Report 2010-2011. p. 98.

13 Depa1tm ent of Families. Hou sing. Community Services and Indigenous Affairs. Annual Report 2010-20 II. p. 3.

14 Depa11m ent of Health and Ageing .. ∑ lnmwl Report 20/0-2011. p. 2.

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Health Perfom1ance Authority (NHPA) legislation to establish a body to monitor public and private hospitals as well as new Medicare Locals.

1.25 Under the National Partnership Agreement, the Department has approved more than 340 project proposals at hospitals across the states and territories , amounting to more than $1 billion since June 2010.15 The Department continues to assess projects for the 2011-12 expenditure under the Agreement. 16

1.26 The MyHospitals website was launched dming the period. The website allows consumers to access information about public and private hospitals. The site received around 265 000 visits between 10 December 2010 and 30 June 2011, and by the later date, included information about 980 hospitals .17

1.27 Three major primary health care developments over the period were the commencement or construction of 31 GP Super Clinics , the engagement of 19 Medicare Locals and the operation of the after hours GP helpline. 18 In the area of mental health, the Department noted the major budget mmouncements in relation to

the Delivering National Mental Health Reform package. The Department will continue to in1plement the measures contained in the refom1 package, including their intersection with primary health care:

ATAPS fund holding an∑angements will transition from Divisions of General Practice to Medicare Locals as they are established and demonstrate capacity to deliver mental health services during 20 l 1- 12. This transition will need to be managed carefully to ensure continuity of service delivery for existing and new clients.

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1.28 The committee notes that a corrigendum to the Department of Health and Ageing's annual report was tabled in the Senate on 31 October 201 I. The corrigendum corrected a ptinting error which caused the names and positions of Therapeutic Goods Administration SES officers not to be displayed.

Department of Human Services

1.29 The reports received from the Department of Human Services and its service delivery agencies together provide an illustration of the policy and practical developments undertaken by the portfolio as a whole during 20 1 0-1 1. The Department of Human Services' (DHS) report reflects the integration of several portfolio agencies into a single state depmtment. As the Secretary explained:

15 Department of Health and Ageing, .-lnnual R eport 2010 2011 , p. 3.

16 Depa1iment of Health and Ageing. Annual Report20!0-201/, p. 3.

17 Department ofHealth and Ageing, Annual R e port2010 ~20/l , p. 3.

18 Department of Health and Ageing, A nmwl Report 20 I 0-20 II, p. 180.

19 Depmiment of Health and Ageing, .-lnnu al Report 1010-2011, p. 283.

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On 1 July 2011 the Human Services Portfolio became a single department of state. The integration of the Department of Human Services (DHS) is part of the Government's Service Delivery Refonn (SDR) agenda to make it easier for Australians to get the services they need in a way that suits their circumstances . The names that Australians know - Centrelink , Medicare, the Child Support Agency and CRS Australia-will continue under DHS .

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1.30 The Department noted that the government has invested $1.2 billion in the SDR over four years. During 20 I 0-11, the Department, together with Centrelink and Medicare Australia , managed the integration of services including people management, IT, records management and parliamentary and ministerial functions.

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1.31 As part of the integration , DHS opened 47 additional co-located offices for delivery of services including Centrelink, Medicare and Child Support, and five new Local Connections to Work (LCTW) sites. 22 DHS' report also noted that over the period, more than 42 000 customers transferred to the Department's single online portal through which they can access Centrelink , Medicare and Child Support accounts. 23

1.32 DHS met its required targets over the period. The Secretary's review noted that DHS met its key perfmmance indicators in 2010-11, including the introduction of SDR initiatives , fraud and compliance measures and the Income Management Card. The Child Support Program (CSP) also met its targets , including reducing the growth of outstanding child support debt which fell from 7.4 per cent in 2009-10 to 2.4 per cent in 2010-1 1. CRS Australia met the target for certification in Disability Service

Standards.

1.33 The committee notes that DHS annual reports were all provided in a timely manner. As well as the Department, the annual reports from each of the other five portfolio agencies, authorities and companies were received by the Minister and tabled in the Senate on or before 3 1 October 20 1 1.

Senator Claire Moore

Chair

20 Department of Human Services. Annual Report 2010-2011. p. 2.

21 Department ofHuman Services, Annual Report 2010-201 I. p. 38.

22 Department of Human Services. Annual Report 2010-2011, p. 28.

23 Department of Human Services, Annual Report 2010-2()/J. p. 28.

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Appendix 1

List of departments, agencies and bodies required to present annual reports to the Senate

Families, Housing, Community Services and Indigenous Affairs portfolio

Department/ Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted during during

Se.nate House of by President to/ received period for period for Represent- of the Senate by Minister Report I Report 2 atives (if applicable) (if available) of2012 of2012

Aboriginal Hostels Limited CAC Act- Section 9 of the Co mmonw ealth 20 I 0-20 II 0 I /11/11 01 /11/11 n/a 13/10/11; J

(AIIL) company A uthoril ies anJ Companies Act 13/ I 0111

(limited by 1997

guarantee)

Aboriginal Land Statutory o nice Section 61 of the Aboriginal 2010-2011 01 111 11 I JIll 01 I I n/a 29/09/11: J

Comrn issioner, Northern holder Land Rights (Northern 30/09/11

Territory TerritO!) '} ACI 1')76

Anindilyakwa Land Council CAC Act- Section 37 of the Aboriginal 2010-2011 13/03/12 13/03112 n/a 01/02/12: J

statutory l.anJ Rights (Northem 01 /02/12

authority Territory) .-let 1976 and section 9 of the Commonwealth Aurhorilies and Companies Act 1997

Central Land Council CAC Act- Section 37 of the Aboriginal 2010-2011 07/02/12 07/02/12 29111 /ll 07/10/ll; J

statutory Land Rights (Nurthem 07/10/11

authority TerriiOIJ) Act 1976, section 9 of the Commonw ealth Authorities and Compm1ies Act 1997 and the Native Title Act 1993

10

Departmen tJ Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted during during

Senate House of by President to/ received period for period for Represent- of the Senate by Minister Report I Report 2 atives {if applicable) (if available) of2012 of2012

Coordinator-General for Statutory office Section 28 ofthe Coordinator- 2010-2011 31 11 0/ II 31 /10/11 14/10/11 30/08/11; J

Remote Indigenous Services 1 holder G eneral.fiw Remote Indigenous 31 /08/11

Services Act 2009

Department of rami lies , Department of Section 63 of the Public Service 2010-2011 31 /10/ I I 31 /10/11 14/10/11 30/08/1 I; J

Hou sing, Community Services State Acr 1999 (PS Act) 31 /08/11

and Indigenous Affairs

Equal Opportunity for Women Prescribed Section 12 ofthe Equal 20 I 0-20 II 13/03 /12 Ol/03 /12 n/a 24/01 /12; J

.....

Ol

in the Workplace Agency agency Oppurtunit yfi)r Women in the 24/01 /12

(EOWA) W orkplace Act 1999

Executive Director of Statutory office Section 20R of the Aboriginal 20 I 0-20 II 07/02/12 07/02/12 29/ II/II 29/09/ I I; J

Township Leasing holder Land Rights (Northern 30/09/11

Territory)Acl 1976

Indigenous Business Australia CAC Act- Section 189 of the Aboriginal 2010-2011 07/02/12 07/02/12 13/12/11 07/10/11; J

(IBA) statutory and Torres Strail Is/under Act 07/10/11

authority 2005 and section 9 of the Commonwealth Authorities and Companies Act 1997

Incorporated into the Department of Families, Housing, Community Services and Indigenous Affairs' Annual Report 2010-11 as Appendix K.

' ' Department/Agency/Body Type Legislation Reporting Date Date Date received Date Received Received Year tabled tabled out of session submitted during during Senate House of by President to/ received period for period for Represent- of the Senate by Minister Report 1 Report2 atives (if applicable) (if available) of20l2 of2012 Indigenous Land Corporation CAC Act~ Section 9 of the Commonwealth 2010-2011 21111 /11 21 / IIIII 15/11 /11 20/10/11; J (ILC) statutory Authorities and Compan ies Act 20/10/11 authority 1997 Northern Land Council CAC Act- Section 37 of the Abori?,inal 2010-2011 Not yet Not yet statutory La11d Rights (Nor/hem tabled tabled authority Territory) Act /976, section 9 of the Co mmonw ealth Authoriti es and Companies Act /997 and the Native Title Act 1993 Outback Stores Pty Ltd CAC Act- Section 36 of the 20 I 0-2011 07/02/12 24/11 I II n/a 29/09/11; J company Commonwealth Authorities and 30/09/11 (limited by Companies Act /997 shares) Social Security Appeals Statutory body Section 25 of the Social Security 2010-2011 07 /02/12 07/02/12 07/12/11 19/10/11; J Tribunal (SSAT) (Ad min istrati01~J Act /999 19110 / II Tiwi Land Council CAC Act- Section 9 of the Commonweal th 2010-2011 22 /11 /11 21 /11/11 n/a 29/09/11; J statutory Authorities and Co mp anies Act 30/09/11 authority 1997 Torres Strait Regional CAC Act- Section 144ZB Aboriginal and 2010-2011 08 /11 11 1 21 /11 /11 n/a 29/09/11; J Authority statutory Torres Strait/slander Act 2005 30 /09/11 authority and Section 9 of the Commonwealth Authorities and Companies Act /997

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Department/Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted during during

Senate House of by President to/ received period for period for Represent- of the Senate by Minister Report 1 Report2 a lives (if applicable) (if available) of2012 of2012

Wreck Bay Aboriginal CAC Act- Section 9 of the Commonw ealth 2010-20 II 13 /03 /12 13 /03 /12 n/a 13/02 /12 J

Community Cou ncil statutory Authorities and Companies Act

authority 1997

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Health and Ageing portfolio

Department/ Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted to/ during during

Senate House of by President received by period for period for Represent- of the Senate Minister Report 1 Report 2 of atives (if applicable) (if available) of2012 2012

Advisory Panel on the Non-statutory No legislative requirement to 2010-2011 07/02/12 07/02/12 n/a 14/ I 1/ II; J

Marketing in Australia of advisory panel table 17/11/ II

Infant Formula

Aged Care Commissioner Statutory orlice Section 95A-12 of the Aged 2010-2011 11/10/11 II /I 0/ II n/a 30/08/ II: J

holder Care Act IYCJ7 30/08/11

Aged Care Standards and CAC Act- Section 9 of the Co mm onwealth 2010-2011 31/10/ II 31 /10/11 26/10/1 I 28/09/1 I; J

Accreditation Ageucy Ltd company Authoriti es and Co mpanies Act 28/09/ I I

(ACSAA) (limited by 1997

guarantee)

Australian Institute of llealth CAC Act- Section 9 ofthe ( ommonweufth 2010-20 II OS / II/ I I 03/11 /11 n/a 14/10/11 : J

and Welfare (AJHW) statutory Authorities and Co mpanies Act 14/10111

authority 1991

Australian Organ and Tissue Prescribed Section 28 of the A ustruli un 2010-20 II 11/10/11 11/1011 1 n/a 29/09/11: J

Donation and Transplantation agency Organ and Tissue Donation and 28/09/11

Authority Trcmsplalllat ion A utlrnritv Act

Au stralian Radiation J>rescri bed Section 59 of the A ustraliun 2010-20 II 12/10/11 12/10/11 n/a 19/09/11: J

Protection and Nuclear Safety agency Radial ion Protect ion and 20/09/11

Agency (ARPANSA) Nuclear Safety Act !998

Cancer Australia Prescribed Section 3 7 of the Ca 11cer 2010-201 I 31/10/11 31/10/11 28/10/11 29/09/11; J

agency Australia Act 2006 30/09/ll

N

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Department/ Agency/Body Type

Department of Health and Department of Ageing the State

Food Standards Australia New C!\C Act-Zealand (FSANZ) statutor y

authority

Office of the Gene Statutory office Technology Regulator holder

General Practice Education CAC Act-and Training Limited (GPET) company (I im itcd by guarantee)

Health Workforce Australia CAC Act-(I-IWA) statutory

authority

Medical Training Review Statutory Panel (MTRP ) authority

2 RelaLes Lo academic calendar year.

Legislation Reporting Date

Year tabled

Senate

Section 63 of the fluhlic Service 2010-20 II 12/10/11 Act/99fJ(PSAct) Con∑ igen dum:

31 /10111

Section 152 of the Food 20 I 0-20 II 01 / II I I I Standard~ AustraLia New

Zealand Act fi)C) I and section 9 of the Commonwealth Authoriti es and Co mpanies Act 1997

Section 136 ofthe Gene 2010-2011 31 /10/11

Technology Act 2000

Section 9 ofthe Commonwealth 2010-2011 2 1/1 1111 Authoriti es and Companies Act /91)7

Section 9 of the Commo nwealth 20 10-20 II 31 /10/11 Authorities and Companies Act /997

Subsection 3GC( 4) of the 2009 - 05 /07/11

H ealth lmurance Act 197 3 2010 2

Date Date received Date Received Recch,ed

tabled out of session submitted to/ during during House of by President received by period for period for Represent- of the Senate Minister Report I Report 2 of atives (if applicable) (if available) of2012 2012

12/10/11 n/a 31 /08 /11; J

3 1/08/11

Co rrigendu Corrigendum: m: 14/1011 1

31 /10/11

31 /10111 n/a 5/ I 0/1 I: J

13/10/11

31 /10/11 I R/ I 0/ II 15/09111: J

19/09/11

22 /11 /11 n/a 14/10/11: I

14.'10/11

31 /10/11 25/10/11 17/10/11: J

17/10/11

05 /07/ II n/a 17/04/11: J

17/04 111

\5

Department/ Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted to/ during during

Senate House of by President received by period for period for Represent- of the Senate Minister Report I Report 2 of atives (if applicable) (if available) of20l2 2012

National Blood Authority Prescribed Section 44 of the Na tional 2010-2011 31/10/ II 31 I I 0/ II 27/10/11 22/09/11 ; J

(NBA) agency Blood .rluthority Act 2003 23/09/11

National flreast and Ovarian CAC Act- Section 9 of the Commo nll' ealth 20 10-20 11 31/10/11 3 Ill 0/11 28/10/11 05111 /11: J

Cancer Centre (N BOCC) company .-1 utharities and Companies Act 07110111

(limited by 199-

guamntce)

National Health ami Medi cal Prescribed Section 83 ofthc National 20 10-2011 31 /I 0/ I I 31 /10/ II 27/10/11 13/10/11 ; J

Research Council {NHMRC) agency Healtlr and M edil∑at Research 13/10/11

Cu uncil.i c.:t J9C)2

N

......

National Industrial C hemicals Regulatory Section I 08 of the Industrial 2010-2011 31/ I 0/1 I J I I I 0/1 I 28/ l 0/ I I 23/09/ II: J Notification and Assessment Scheme C hemicals (Notifi cation cmd 26/09/11

Scheme (NICNAS) Assessment) .rlct 1989

Pharmaceutical Benellts Non-statutory Section 99Y8C of the National 2010-2011 12/10/11 12/1011 1 n/a J 1/08/11: J

Pricing Authority (PB PA )3 body H ealth Ac:t/9 53 J l/08/11

Private Health Insurance CAC Act - Section 9 ofthe Com m onwealth 2010-2011 07/02/12 21 I II ill 18/01 /12 14/10/ II: J

Administration Co uncil statutory Authorities ami Companies !let 14/10/11

(PH lAC) authority 1997

Private Health Insurance Prescribed Section 253-50 of lhe Private 2010-2011 01 /11/ II 13/1011 1 nia 26/09/11: J

Ombudsman (PHIO) agency H ealth lnmrance Act 2007 I Ill 0/11

3 Incorporated into the Department of Health and Ageing's Annual Repurl 2010-11 as Appendix 3.

16

Department/Agency/Body Type Legislation Reporting Date Date Date received Date Receh,ed Recei,∑ed

Year tabled tabled out of session submitted to/ during during

Senate House of by President received by period for period for Represent- of the Senate Minister Report I Report 2 of atives (if applicable) (if available) of2012 2012

Professiona l Services Review Prescribed Section I 06ZQ of the Ht!alth 2010-2011 31 /10/11 31 /10/11 19/10/1 I I I II 011 I; J (PSR) agency Insurance Act 197 3 12/10111

17

Human Services portfolio

Department/Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted during during

Senate House of by President to/ received period for period for Represent- of the Senate by Minister Report I Report 2 of atives (if applicable) (if available) of2012 2012

Australian Hearing Services CAC Act- Section 9 of the Com m onweulth 20 10-20 II 31 /10/11 31/10/11 14/10/11 04/10/11: J

(Australian llearing) statutory Alllhorit;es and Companies Act 04/10/11

authority 1991

Centre! ink (Commonw ealth Prescribed SeGtion 40 of the 2010-20 II 31/10/11 31/101 II 19/10/11 26r09/ll: J

Services Delivery Agency) agency CoJ II/11011wea/th Service s 26/09/11

D eliverv Agency Act I 991

C hild Support Registrar 4 Statutory office Section 14 of the Child Support 2010-2011 31/10/11 31/10/11 19/10/11 26,09/11 : J holder (Registration and Collection) 26/09/11

Act /988

Department of I Iuman Department or Section 63 of' the f'uhlic Service 2010-2011 31/10/11 31/10/ II 19/10/11 26/09/1 I; J Services the State Act /999(PS Act) 26/09/11

Medicare Australia Prescribed Section 42 of the 11/edicare 2010-2011 31/10/11 3 I I I 0/11 19/1011 1 26/09/11; J

agency Australia Act 1973 26/0t)/1 I

Medibank Private Limited Ct\C Act- Section 9 of the Commonwea lth 2010-201 1 11/10/11 22/09/11 nta 08/09/11 : J

com pany A whoritie s and Companies Act 12/09/11

(limited by 199 7

shares)

4 Reports within the Department of Human Services annual report

24

The Senate

Economics

Legislation Committee

Annual rep011s (No. 1 of 2012)

25

March 2012

©Commonwealth of Australia 2011

ISBN 978-1-74229-568-8

Printed by the Senate Printing Unit. Parliament House. Canben∑a.

26

Senate Economics Legislation Committee

Members

Senator Mark Bishop, Chair Senator David Bushby, Deputy Chair Senator Alan Eggleston Senator Doug Cameron Senator Anne Urquhart Senator Nick Xenopbon

Secretariat

Mr Tim Bryant, Secretary Dr Noemi Murphy, Research Officer Ms Morana Kavgic, Administrative Officer

PO Box 6100

Parliament House CanberTa ACT 2600 Ph: 02 6277 3 540 Fax: 02 6277 5719 E-mail: economics.sen @ aph.gov.au

Western Australia, ALP Tasmania, LP Western Australia, LP New South Wales, ALP

Tasmania, ALP South Australia, IND

Internet: \V\VI\'.aph.gov.au/Parliamentarv Business/Committees/Senate Committees ?url=economics ctte/ index. htm

Ill

27

28

TABLE OF CONTENTS

Membership of Committee ................................................................................................ iii

Chapter 1: 0\'ervie\\ ' .......................................................................................... 1

Introduction ....... ..... ...... ...... ............................. ....................................................... 1

Purpose and requirements of annual reports .......................................................... 2

Reports referred to the committee ........ .... ... ......................... ............................. ..... 3

T . ,. ~

nne tness ............................................................................................................... )

Remarks made in the Senate ................................................................................... 6

Bodies not presenting annual reports to the Senate .......... .... ........... ........ ..... .......... 6

Other comments on repot1s ....... ...... ........... .................. .................... ................. ..... 6

Chapter 2: Individual2010-20ll Annual Reports ......................................... 9

Reports under the Industry. Innovation, Science. Research and Tertiary Education portfolio ....... ........... ......................... .......... ....... 9

Reports under the Resources. Energy and Tourism portfolio ............ ................ .. 14

Reports under the Treasury portfolio ......................................... .... ...................... 17

Appendix 1: Abb1∑eviations ............................................................................... 27

Appendix 2: Industry , Innovation, Science and Research Portfolio: List of annual reports tabled in the Senate during the period 1 May 2011 to 31 October 20 11 .............................................................................................. 31

Appendix 3: Resources, Energy and Tourism Portfolio: List of annual reports tabled in the Senate during the period 1 May 2011 to 31 October 20 11 .............................................................................................. 33

Appendix 4: Treasury Portfolio: List of annual reports tabled in the Senate during the period 1 May 2011 to 31 October 20 11 ....................... 35

Appendix 5: Portfolio structure for the Industr y Innovation. Science and Research Pot1fo lio ....................................................... 39

Appendix 6: Portfolio structure and outcomes for the Resources, Energy and Tourism Portfolio .............................................. 41

Appendix 7: Portfolio structure and outcomes for the Treasury Portfolio ....... 43

29

30

Chapter 1

Overview

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:

" Industry, Innovation, Science, Research and Tertiary Education;

" 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 refen∑ed 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

Journals of the Senate. No. 74. 8 February 2012, pp 2043-2044.

2 Standing Order 25(20), Standing Orders and other orders of the Senate, June 2009, p. 28.

31

Page 2

Purpose and reqnirements 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 govenunent departments and agencies. Their tabling in the Parliament , and scrutiny by Senate committees, allows Parliament to make informed judgments on the executive's perfom1ance in administering government progranm1es.

1.5 Departments of State and Executive Agencies present their annual reports pursuant to sections 63(2) and 70(2) of the Public Senice 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 Comm onwealth 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 Conm1ittee'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.

1.7 This report also examines the new requirements approved by the Joint Committee of Public Accounts and Audit which include an analysis of Key Performance Indicators (KPis) and statistics relating to occupational health and safety issues;6 freedom of infom1ation requests (up to 30 April 2011);7 ecologically

3 They are required to comply with the Dep artment of the Prime Minister and Cabinet's Requirem ents for Annual Reports for Departments. Executive Agencies and FMA Act Bodies, approved by the Joint Committee of Public Accounts and Audit on 18 June 2008. See http://v,'\\'W .dpmc.gov.au/guidel ines/docs/annual report reguirements.pdf. Section 3( l) of the Requirements states that they also 'apply to prescribed agencies under section 5 of the Financial Manag em ent and Accountabili ty Act 1997'. The financial statements must be produced in

accordance with the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2007).

4 Reports of Commonwealth authorities subject to the CAC Act must be produced in accordance with the Commonwe alth Authorities and Companies (Report of Operations) O rders 2008 and the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2007). Annual reports of Commonwealth comp anies are required to be based on the reporting requirements under the Corporations Act 2001.

5 http://www.finance.gov.au/financial -framework/fma-legislation /fma-agencies.html ; and http://w w w. finance.gov .au/financial- framework/cac-1 egi sl ation/cac-bod ies.htm I.

6 Section 74 of the O ccupational H ealth and Safety (Common wealth Employm ent) A ct 1991.

7 Section 8 of the Freedom of Information Act 1982.

32

Page l

sustainable development and environmental perfom1ance reporting; 8 and advertising and market research. 9

Reports referred to the committee

1.8 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 I May and 31 October each year by the tenth sitting day of the following year. This year that date is 15 March 2012.

1.9 This report examines the following annual reports for 2010- 11 , which were tabled in the Senate by 31 October 2011, within their required timeframe:

" Auditing and Assurance Standards Board (AAUSB);

" Australian Accounting Standards Board (AASB) ;

" Australian Bureau of Statistics (ABS);

" Australian Institute of Aboriginal and Torres Strait Islander Studies (A1ATSIS) ;

" Australian Institute of Marine Science (AIMS);

" Australian Nuclear Science and Technology Organisation (ANSTO);

" Australian Research Council (ARC);

" Australian Reinsurance Pool Corporation (ARPC);

" Australian Securities and Investments Conmlission (ASIC);

" Australian Solar Institute (ASI)∑

" Commonwealth Grants Commission (CGC) ;

" Commonwealth Scientific and Industrial Research Organisation (CSIRO);

" Companies Auditors and Liquidators Disciplinary Board (CALDB);

" Department of Innovation , Industry , Science and Research (DIISR);

" Department of Resources, Energy and Tourism (DRET: includes Geoscience Australia) ;

" Financial Reporting Council (FRC);

" Financial Rep011ing Panel (FRP);

" Inspector-General ofTaxation (IGT);

" National Competition Council (NCC);

8 Section 516A of the Environment Protection and BiodiveJ si~ v Conservati on Act 1999.

9 R equirem ents for Annual Reports, published by the Depatiment of Prime Minister and Cabinet and approved by the Joint Parliamentar y Committee on Public Account and Audit in July 2011.

33

Page4

"

"

"

"

"

1.10

National Offshore Petroleum Safety Authority (NOPSA);

Productivity Commission (PC);

Reserve Bank of Australia (RBA) ;

Superannuation Complaints Tribunal; and

Takeovers Panel.

th e l∑ ndividual reports are contained in Chapter 2. Comments on es

Th l

∑ ttee notes that due to changes in the machinery of government in 1 11 e conun .

∑ b 2o 11 the committee's subsequent Report on Annual Reports will also Dec~T? :~alysis' of annual reports tabled under the ertiary Education and Skills

co~fo~o now the third outcome for the Department of Industry , Innovation, Science,

k~search and Tertiary Education (formerly the Department of Innovation , Industry ,

Science and Research).

1.12 The conm1ittee calls attention to the Report on Annual Reports prepared by the Parliamentary Joint Committee on Corporations and Financial Services (PJC). The p JC is established by Part 14 of the Australian Securiti es and Investments Commission Act 2001 (the ASIC Act). Section 243 specifies the committee's duties, which include:

(b) to examine each annual report that is prepared by a body established by this Act and of which a copy has been laid before a House, and to report to both Houses on matters that appear in, or arise out of, that annual report and to which, in the Parliamentary Committee's opinion, the Parliament's attention should be directed ...

1.13 Therefore, in fulfilment of the committee's duties under subsection 243(b ), the PJC may report on the following I 0 bodies established under the ASIC Act, namely:

"

"

"

"

"

"

"

"

"

"

Auditing and Assurance Standards Board (AUASB) ;

Australian Accounting Standards Board (AASB);

Australian Securities and Investments Conmlission (ASIC);

Companies Auditors and Liquidators Disciplinary Board (CALDB);

Corporations and Markets Advisory Committee (CAMAC);

Financial Reporting Council (FRC);

Financial Reporting Panel (FRP);

Office of the Australian Accounting Standards Board (Office of the AASB);

Office of the Auditing and Assurance Standards Board (Office of the AUASB) ; and

Takeovers Panel.

34

Page 5

Timeliness

1.14 Standing Order 25(20)( c) requires the committee to repot1 to the Senate on the late presentation of annual repot1s.

1 .15 The legislative requirements for the tabling of annual reports vary between different types of agencies. 10 However, the Government's policy is 'that all annual reports should be tabled by 31 October'. 11

1 .16 This report details the annual reports which were tabled by 31 October in the Senate. The committee commends the departments and agencies discussed in this report for their timeliness.

1.1 7 The Comn1ittee notes that there are a significant number of organisations whose annual reports , while prepared and sent to the minister by October, were not tabled in the Senate until November. These are listed in Table 1.

Table 1: Reports tabled in the Senate after 31 October

Agency Transmitted Received by Tabled in

Minister Senate

Australian Centre for Renewable Energy (ACRE) Dec 19 Jan 9Feb

Board

Australian Competition and Consumer 25 Aug 9 Sept OV

Commission (incl. AER)

Australian Office offinancial Management 13 Sept 30 Aug ov

Australian Prudential Regulation Authority 12 Oct 27 Oct 4Nov

Australian Statistics Advisory Council 11 Oct 19 Dec 7 Feb

Australian Taxation Office 30 Sept 12 Oct 1 Nov

Corporations and Markets Advisory Committee 15 Sept 4 Oct 1 Nov

(CAMAC)

The Treasury 13 Oct 27 Sept I Nov

IIF Investments Pty Ltd 28 Oct 7 Feb

10 The various requirements are set out in the Committee's repori Annual reports (No. I of 2009), March 2009, p. 4.

1 1 Department of the Prime Minister and Cabinet, Requirem ents for Annual Rep011s for Departments, Executive Agencies and FMA Act Bodies, 23 June 2010, p. 2; Department of the Prime Minister and Cabinet, Guidelines for the Presentation of Government Do cum ents to the Parliament (Including Govemm ent Responses to Committee Reports, Ministerial Statem ents. Annual Reports and Other Instrumems), June 2010, paragraph 4.1 0.

35

Page 6

Agency Transmitted Received by Tabled in

Minister Senate

Innovation Au stralia N ot Given 28 Feb

Royal Au tralian Mint 16 Sept I ov

Snowy Hydro Limited 24 Aug 16 Jan 7 Feb

Tax Practitioners Board 7 Oct

Tourism Australia 14 Oct 14 Oct 1 Nov

Remarks made in the Senate

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

1 .19 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

1.20 The conunittee 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, Research and Tertiary Education; Resources, Energy and Tourism; or Treasury portfolios that are avoiding their obligation.

Other comments on reports

1.21 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

1.22 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 Conm1ittee'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.

1.23 The Committee commends most departments and agencies for their inclusion of compliance indices in their 2010-11 annual reports.

36

External scrutiny and accountability

1.24 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 particular s 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) repons on the operations of the department by the Auditor-General (other than the report on financial statements), a Parliamentary committee or the Commonwealth Ombudsman. 12

Page 7

1.25 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 imp011ant 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).

12 Requirem ents for Annual Reports for D !!partments. Executive Agencies and FMA Act Bodies. Clause 11 of Schedule l of the Comm onweaTth A uthoriti es and Companies (Report of Op erations) Orden∑ 2008 states that the same requir ements apply to Commonwe alth authorities that present their annual reports in accordance with the provisions of section 9 of the CA C Act.

37

38

Chapter 2

Individual 2010-2011 Annual Reports

Reports under the Industry, Innovation, Science, Research and Tertiary Education portfolio

Australian l11sfitute of Aboriginal and Torres Strait Islander Studies (AJATSIS)

Reporting requirements

2.1 The conm1ittee considers that AlA ISIS has met its reporting requirements under section 63 of the Public Service Act 1999 and section 9 of the Commonvr ealth Awhorities and Companies Act 1997 (CAC Act).

2.2 The committee notes that AIATSfS did not provide a full date on the Letter of Transmittal.

Recommendation 1

2.3 The committee recommends that the Australian Institute of Aboriginal and Torres Strait Islander Studies record a full and proper date, stipulating the day, month and year on the Letter of Transmittal.

Op erational1\1atters

2.4 The conm1ittee notes AIATSIS's concerns over a lack of funding and the serious implications this has had for their operations.

2.5 AIATSIS is to be commended for a very interesting annual report. It contained vivid descriptions of preservation projects , such as the archival of the history of two CanbetTa families , 1 and NAIDOC on the Peninsula. 1

2.6 Other highlights of the year include the publication of a 148 year old encyclopaedia in 2010.3 Publlshed by Aboriginal Studies Press, Australia: ∑ william Blandowski' s i/lw.;trat ed encyclopaedia r~f Aboriginal A ustralia , previously only existed as a sole surviving complete copy, written in Gem1an , buried in the State

Library ofBerlin. 4

AIATSIS. A nnual Rep01i 2010-2011. p. 71.

2 AlA TSIS. Annual Rep01i 2010-20 II. pp. 86-87.

3 AlATSIS. Annual Rep0112010-201 L p. 45.

4 AIA TSIS. Annual Rep01i 20 I 0-201 1, p. 45.

39

Page JO

2. 7 AIATSIS is also continuing its preservation and archival activities and has acquired a high-performance file storage system and upgraded facilities to assist in its . . . "

activities. ∑

Australian Institute of Marine Science (AIMS)

Reporting Requirements

2.8 The committee considers that AIMS has met its reporting requirements under section 63 of the Public Service Act 1999 and section 9 of the CAC Act.

2.9 However, the committee questions the payment of a large bonus to a senior executive, totalling $96,016. The annual report states that 'the maximum bonus that an individual can receive was 32 per cent of his [sic] base salary' ,6 however, the percentage of this particular bonus amounts to 36.6 per cent of the base salary of $262, 268, and far exceeds bonuses paid by other agencies of the same status.

Op erational Matters

2.10 A major milestone was reached on 30 June 2011, with the end of the 2007-2011 Research Plan and the beginning of the new 2011-2015 Research Plan.

2.11 2011 also marks the end of Dr Ian Poiner's tenure, who has been the CEO of AlMS for the past seven years.

2.12 AIMS reports that it is facing major challenges due to a shortfall in base funding as a result of significant cost inflation, which is not being matched by indexation of their appropriation revenue. There has also been a general reduction in funding provided to co-invested research programs. 7

2.13 Some of AIMS's achievements throughout the year include:

" the significant upgrades to infrastructure as part of the Tropical Marine Research Facilities Project; 8

" the Scott Reef Research Project was completed making it the largest baseline environmental study undertaken by AIMS for the oil and gas industry ; 9

" after 1 0 years of research and infom1ation assembly by global experts, the first Census of Marine Life was release in 2010, assessing humankind's knowledge of the oceans; 10 and

5 AlA TSIS, Annual Repott 2010-201 L pp. 64-78.

6 AIMS Annual Report 2010-2011, p. 103.

7 AIMS Annual Repmt 2010-2011 , p. 10.

8 AIMS Annual Report 20 I 0-2011, p. 12.

9 AIMS Annual Repott2010-2011, p. 12.

10 AIMS Annual Report 2010-2011. pp 12-13.

40

Page 11

" AIMS's headquarters at Cape Ferguson, Townsville, was a designated cyclone evacuation point during Tropical Cyclone Y asi and local residents sought refuge in the main building. 11

2.14 Negotiations are also currently underway between management and staff regarding the 2012-2015 AIMS Enterprise Agreement.12

Aush∑a/ian Nuclear Science and Technology Organisation (ANSTO)

Reporting requirements

2.15 The committee considers that ANSTO has met its reporting requirements under section 63 of the Public Service Act 1999 and section 9 of the CAC Act.

Operational Matters

2.16 ANSTO is the custodian of nuclear knowledge and expertise in Australia and operates OPAL , Australia's only research reactor.

2.17 The annual report outlines changes to the board of ANSTO , including the appointment of a new Chairman, Professor Paul Greenfield AO who takes over from Dr Zygmunt (Ziggy) Switkowski.

2.18 According to the annual report, following the March 2011 earthquake and tsunami in Japan, ANSTO supported the government by providing technical information and advice to the Interdepartmental Emergency Task Force, chaired by the Department ofF oreign Affairs and Trade. 13

2.19 Nuclear technology is being used in early research to shed light on early cultural connectivity across Eurasia by investigating sites in northwest China. ANSTO is applying isotopic methods and atomic mass-spectrometry with radiocarbon dating to archaeological remains from Bronze Age sites to better understand cereal cultivation , anin1al husbandry and metal-work technology. 14

Australian Research Council (ARC)

Reporting requirements

2.20 The committee considers that ARC has met its reporting requirements under section 63 of the Public Service Act 1999, the Financial Manag em ent and Accountability A ct 1997 (FMA Act) and the Australian Research Council Act 2001 (ARC Act).

11 AIMS Annual Report 2010-2011, p. 13.

12 AIMS Annual Report 2010-2011, p. 14.

13 AN STO Annual Report 2010-2011. p. 17.

14 A N STO Annual Report 2010-2011. p. 21.

41

Page 12

Operational matters

2.21 The committee notes the observations of the ANAO Audit Report, which stipulates that the ARC has recently become aware:

... there is an increased risk of non-compliance with section 83 of the Constitution where payments made from special appropriations and special accounts in circumstances where the payments do not accord with conditions included in the [ARC Act].

15

2.22 The report also noted that the ARC has advised that these circumstances will be investigated .

2.23 In 2010-2011 the first national stocktake of the quality of research at Australian universities was completed, under the Excellence in Research for Australia (ERA) initiative. The findings are informing research policy and will be incorporated into the funding formula for the Sustainable Research Excellence in Universities program.16

2.24 In February 2011, the commencement of operations of the Australian Research Integrity Committee (ARIC) was announced. It is jointly administered by the ARC and the National Health and Medical Research Council (NHMRC) and will play an important role in reviewing the internal processes for research misconduct at institutions. 17

The Commonwealth Scielltijic and Industrial Research Organisation (CSIRO)

Reporting requirements

2.25 The committee considers that the CSIRO has met its reporting requirements under section 63 of the Public Service Act 1999, section 9 of the CAC Act and the Science and Research lndust1y Act 1949.

Operational Matters

2.26 According to the annual report, Boeing named CSIRO its Global Research and Development 'Supplier of the Year' in May 2011. The award recognises a 22 year relationship that has seen CSIRO and Boeing jointly invest in projects such as world " leading teclmological innovations in aircraft repainting methods, sustainable aviation fuels and aircraft assembly processes. 18

15 ARC Annual Report 2010-2011, p. 106.

16 ARC Annual Report 2010-2011 , p. 3.

17 ARC Annual RepOJt 2010-2011, p. 4.

18 CSIRO Annual Report 2010-2011, pp. xviii-ix.

42

Page 13

Department of Innovation, Industry, Science and Research (DIISR); includes IP Australia

Reporting requirements

2.27 The conm1ittee considers that DIISR has met its reporting requirements under section 63 of the Public Service Act 1999 and the FMA Act.

Operational Matters

2.28 The committee notes the observations of the ANAO Audit Report, which stipulates that both DIISR and IP Australia have recently become aware:

... there is an increased risk of non-compliance with section 83 of the Constitution where payments made from special appropriations and special accounts in circumstances where the payments do not accord w ith conditions included in the relevant legislation .19

2.10 The report also noted that DIISR and IP Australia has advised that these circumstances will be investigated.

2.29 According to the annual report Questacon was awarded the 2010 Canberra and Capital Region Tourism Award in the Tourist Attraction Category in December 2010.20

2.30 Professor Penny Sackett stepped down as Chief Scientist on 4 March 2011 . Her successor , Professor Ian Chubb AC was appointed as the Chief Scientist on 19 April2011 and commenced his three-year term on 23 May 2011.21

2.31 Other highlights include the extension of the Small Business Support Line (SBSL), which provides a single point of contact for small businesses to access information and referral services . The SBSL has received over 31,000 calls since it was launched in September 2009.22

2.32 The department announced the first round of funding for the Collaborative Research Network (CRN) program, which encourages smaller, less research-intensive , and regional higher education institutions to develop their research capacity by collaborating with other institutions in areas of common interests. 23

2.33 Highlights for IP Australia include the launch of the Dream Shield Project in November 2011, which features success stories and tips for Aboriginal inventors,

19 DilSR Annual Repot1 2010-2011, p. 147 (DllSR) and p. 291 (IP Australia).

20 DIISR Annual Repot1 2010-2011 , p. 100.

21 DIISR Annual Report 2010-2011, pp 98-99.

22 DIISR Annual Rep0112010-2011, p. 5.

23 DIISRAnnu al Report 2010-2011 , p. 7.

43

Page 14

designers and business owners, 24

and the completion of the Advisory Council on

Intellectual Property's (ACIP) report on Patentable Subject Matter. 25

Reports under the Resources, Energy and Tourism portfolio

Australian Solar Institute (AS/)

Reporting requirements

2.34 The committee considers that ASI has mostly met its reporting requirements under section 63 of the Public Sen; ice Act 1999 and section 9 of the CAC Act.

2.35 The committee notes that the annual report of the ASI did not contain a Compliance Index and did not include a section detailing Freedom of Information (FOI) requests as outlined in the Prime Minister and Cabinet's (PM&C) Requirem ents for D epartmental Annual Reporti 6 and approved by the Joint Committee of Public

Accounts and Audit (JCP AA).

Recommendation 2

2.36 The committee recommends that the Australian Solar Institute include a Compliance Index in their 2011-2012 annual report and a list of Freedom of Information requests, as outlined in the Prime Minister and Cabinet's Requirements for Departmental Annual Reports.

Operational matters

2.3 7 The one year anniversary of the ASI was marked on 10 August 201 0.

2.38 In November 2010, the US-Australia Solar Energy Collaboration was announced by the Prime Minister, Julia Gillard and U.S. Secretary of State, Hillary Clinton. This collaboration aims to accelerate the reduction in costs for solar energy hn l

. n

tee o ogtes.-2.39 A memorandum of understanding was signed in March 2011 between ASI and the D eutches Zentrwn fiir Luft-und Razm?fahrt (DLR) , a leading European Research body located in Germany , to develop concentrated solar power (CSP) technologies. 28

24 DTISR Annu al Report 2010-2011, p. 251.

25 DIISR Annual Report 2010-2011, p. 255.

26 A vailable at http://www.dpmc.gov.au/guideline s/

27 ASI Annual Report 2010-2011. p. 30.

28 ASI Annual Report 2010-2011. p. 30.

44

Page 15

Department of Resources, Energy and Tourism (DRET)

Reporting requirements

2.40 The committee considers that DRET and Geoscience Australia have met its reporting requirements under section 63 of the Public Service Act 1999 and the FMA Act. The committee commends DRET on an outstanding report.

2.1 DRET's annual report also includes the annual report of Geoscience Australia , a prescribed agency within the portfolio.

Op erational matters

2.41 Since the publication of the 2010-11 Portfolio Budget Statements DRET assumed responsibility for the Smart Grid, Smart Cities program from the Department of Climate Change and Energy Efficiency.

2.42 DRET implemented three significant changes to their operations during the year: " the establishment of the Clean Energy Division (1 July 201 0) to focus on the delivery of the government's Clean Energy Initiative which includes the Solar

and Carbon Capture and Storage Flagships programs, the Australian Centre for Renewable Energy and the Australian Solar Institute;

" the establishment of the Bureau of Resources and Energy Economics (operating since 1 July 2011) through transfer of staff from the fom1er Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), recruitment of new staff and the appointment of a Chief Economist; and

" the Strategic Review of Geoscience Australia conducted with the Department of Finance and Deregulation affirmed that it performs a whole-of-government role, but recommended that it form closer links with DRET in the establishment of priorities and responsibility for spatial information policy. The APS200 project will recommend introducing a spatial data location

policy across the Australian Government. The Office of Spatial Data Management function will therefore move into DRET.

2.43 Other highlights of DRET's year include the launch of the National Carbon Capture and Storage Council; the development of Carbon Capture and Storage Flagships program; the announcement of two solar flagship projects in Queensland and New South Wales; the launch of the Renewable Energy Venture Capital Fund;

strengthening of the bilateral engagement with China through the memorandum of understanding on resource cooperation, the Australia-China Joint Coordination Group on Clean Coal Technology; and a new memorandum of understanding on strengthening tourism cooperation with China, Australia's leading tourism market by

value. In June 2011 DRET hosted the Australia-China Tourism Summit in Cairns.

45

Page 16

2.44 A highlight for Geoscience Australia was the completion of the five-year Energy Security Program, to promote investment in the energy and resource sectors .

National Offshore Petroleum Safety Authority (NOPSA/ 9

Reporting Requirements

2.45 The committee considers that NOPSA has met its reporting requirements under the FMA Act and the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

2.46 NOPSA's report also contains the annual report of the NOPSA Advisory Board, which provides advice and reconm1endations to the Chief Executive Officer (CEO) of NOPSA on operational policies and strategies.

Operational matters

2.4 7 The ANAO report has stated that NOPSA has recently become aware that:

... there is an increased risk of a breach of section 83 of the Constitution where payments made from special appropriations and special accounts in circumstances where the payments do not accord with conditions included in the relevant legislation.

2.48 The report also noted that NOPSA has advised that these circumstances will be investigated.

2.49 With the release of the Government's Final Response to the Report of the Montara Commission of Inquiry, 102 recommendations were made, giving rise to a number of legislative amendments affecting the offshore oil and gas industry.

2.50 NOPSA also took on the responsibility for the regulation of wells and well " related activities under the Offshore Petroleum and Greenhouse Gas Storage (Resource Management and Administration) Regulations 2011 on 29 April 2011.

2.51 The committee commends NOPSA for including their Key Performance Indicators , information relating to occupational health and safety issues and FOI statistics.

29 As of 1 January 2012, NO PSA . in line w ith its new responsibilities for wells, will become NOPSEMA, the National Offshore Petroleum Safety and Environmental M anagement Authority.

46

Page 17

Reports under the Treasury portfolio

Auditing a11d Assurance Standards Board (A UASB)

Reporting requirements

2.52 The committee considers that AUASB has met its reporting requirements under section 63 of the Public Service Act 1999, the ASIC Act and the FMA Act.

2.53 The committee notes the absence of a Compliance Index.

2.54 This annual report may also be subject to review by the Parliamentary Joint Committee on Corporations and Financial Services (P JC).

Operational matters

2.55 The AUASB continues to liaise with the Department of Climate Change and Energy Efficiency regarding the development of audit requirements for reports prepared under the Clean Energy Scheme and National Greenhouse and Energy Reporting Act 2007 (NGER Act).30

2.56 The Chaim1an and Executive Director attended the National Standard Setters Meeting in Toronto, where delegates from 16 countries met to discuss international audit and assurance standard setting issues. 3 1

2.57 The AUASB released the ASA 2011-1 Amendments to Australian Auditing Standards in June 2011.32

Australian Accounting Standards Board (AASB)

Reporting requirements

2.58 The committee considers that AASB has met its reporting requirements under section 63 of the Public Service Act 1999, the ASIC Act and the FMA Act.

2.59 The committee notes the absence of a Compliance Index.

2.60 This annual report may also be subject to review by the Parliamentary Joint Committee on Corporations and Financial Services (P JC).

Op erationalnwtters

2.61 Highlights of AASB 's financial year include the issuance of 11 new and amending standards; 1 7 exposure drafts and discussion papers; 14 formal submissions

30 AUASB , Annual Report 2010-2011, p. 10.

31 AUASB , Annual Report 2010-2011, p. 7.

32 AUASB , Annual Report 2010-2011, p. 5.

47

Page 18

to the International Accounting Standards Board (IASB) and International Public Sector Accounting Standards Board (IPSASB); and the organisation of several public roundtable discussions, which were presented to outside groups on more than 20 . 33

occas10ns.

Australian Bureau of Statistics (ABS)

Reporting requirements

2.62 The committee considers that the ABS has met its reporting requirements under section 63 of the Public Service Act 1999 and the FMA Act. The committee conm1ends the ABS on an outstanding report.

Operational matters

2.63 At the time of reporting , the ABS was preparing for the 161h Census of Population and Housing (Census) held on Tuesday 9 August 2011.34

2.64 The ABS adopted a new strategic direction of transforming the management of key statistical infom1ation in Australia to improve the usability, value and timeliness of official statistics. 35

2.65 The ABS hosted the NatStats 2010 Conference in Sydney from 15-17 September 2010. The theme was 'Measuring what counts: economic development, wellbeing and progress in 21 51 century Australia'. 36

2.66 A review in to the Consumer Price Index (CPI) was also completed with the conclusion that the prin1ary purpose of the CPI will remain as a measure of household inflation. From September 2011, changes will, however, be made to the measurement of financial services and seasonally adjusted estimates of the CPI will also be produced.

37

Australian Reinsurance Pool Cmporation (ARPC)

Reporting requirements

2.67 The committee considers that ARPC has met its reporting requirements under section 63 of the Public Service A ct 1999 and section 9 of the CAC Act.

33 AASB , Annual Repoti 2010-2011, p. 3.

34 ABS , Annu al Report 2010-2011, p. 2.

35 ABS , Annual Report 2010-2011, p. 3.

36 ABS , Annu al Repot1 2010-2011, p. 5.

3 7 A BS , Annual Rep011 201 0-2011, p. 5.

48

Page 19

Operational matters

2.68 Mr David Matchamjoined the Corporation at the end of the first quarter as the new CE0.38

2.69 ARPC's operating result for the financial year was $61.386 million and reflects a 15.4 per cent increase over the previous year. 39

2.70 The gross written premium for the fmancial year was $112.555 million, which represents a 7.3 per cent increase on Last year. 40

Australian Securities and Investments Commission

Reporting requirements

2.71 The conmlittee considers that ASIC has mostly met its reporting requirements under section 63 of the Public Service Act 1999, the Australian Securities and Investments Commission Act 2001 (ASIC Act) and the FMA Act.

2.72 The committee notes that ASIC did not provide details of ecologically sustainable development and environmental performance 41 as per the JCP AA and PM&C guidelines.

42

2.73 The conunittee also notes that ASIC did not provide a Compliance Index.

Recommendation 3

2.74 The committee recommends that in their next annual report, ASIC detail their compliance under Section 516A of the Environment Protection and Biodiversity Conservation Act 1999, as outlined in the Requirements for Annual Reports, published by the Department of Prime Minister and Cabinet and

approved by the Joint Parliamentary Committee on Public Accounts and Audit in July 2011.

Operational Matters

2.75 Mr Tony D'Aloisio, Chairman of ASIC, left in May 2011. Mr Greg Medcraft has been appointed as the new Chainnan. 43

38 ARPC , Annual Report 2010-2011, p. vii.

39 ARPC, Annual Report 2010-2011, p. vii.

40 ARPC, Annual Report 2010-2011. p. vii.

41 Section 516A of the Environment Protection and Biodiversity Conservation Act 1999.

42 Requirements for Annual Reports, published by the Department of Prime Minister and Cabinet and approved by the Joint Parliamentary Committee on Public Accounts and Audit in July 2011.

43 ASIC Annual Repo11 2010-2011, p. 2.

49

Page 20

2.76 Highlights of ASIC's year include the donation of$85,786 to 27 not-for-profit organisations by employees, directly from their salary or pay. 44

2. 77 ASIC also concluded negotiations for a new three-year enterprise agreement. Staff will receive 9 per cent in salary increases over the life of the three-year agreement, beginning with 3 per cent from July 2011, and then 3 per cent in July 2012 4"

and July 2013. )

Commonwealth Grants Commission (CGC)

Reporting requirements

2. 78 The committee considers that the CGC has met its reporting requirements under section 63 of the Public Service Act 1999 and the Commomvea!th Grants Commission Act 2003.

Operational matters

2. 79 In 20 l0-2011, the 'conm1ission's outcome was fiscal equalisation'. 46

Outputs

relating to this outcome were:

" the completion of the Report on GST revenue sharing relativities, 2011 Update; and

" the commencement of work relating to the 2012 Update of GST revenue sharing relativities. 47

2.80 The commission has also provided responses to questions asked about its methods by the review panel and its secretariat, in an effort to be more transparent. These responses are available on the CGC website at the following URL: http://www.cgc.gov.au/£st dist1ibution review/presentation on the work of the co

. . 48

mmisswn.

Companies Auditors and Liquidators Disciplinmy Board (CALDB)

Reporting requirements

2.81 The committee considers that CALDB has met its reporting requirements under section 63 of the Public Service Act 1999 and the ASIC Act.

2.82 This annual report may also be subject to review by the Parliamentary Joint Conm1ittee on Corporations and Financial Services (PJC).

44 ASIC Annual Repor1 2010-2011, p. 60.

45 ASIC Annual Report 2010-2011, p. 54.

46 Commonwealth Grants Commission, Annual Report 2010-2011, p. 5.

47 Com monwealth Grants Commission, Annual Report 2010-2011, p. 5.

48 Commonwealth Grants C ommi ssion, Annual Report 2010-2011, p. 6.

50

Page 21

Operational matters

2.83 During the reporting year, the Chairman of the Board, Donald Magarey retired and Howard Insall SC was appointed for a period of three years. 49

2.84 At the commencement of the reporting period, no extant matters were to be heard. In the final quarter of the reporting year, two conduct matters and one administrative matter were referred to the Board. 5∞

2.85 The committee notes that CALDB appears to be significantly underutilised by ASIC and APRA and matters referred to the Board have dramatically declined. 51

Table 2: Breakdown of number of cases before CALDB

Results of application 06/07

Reg istration cance lled .:!

Reg isiration suspenoe d 2

Ad m onition

Re pnm ar.d .1

U ndertakm gs requrred to be grven 5

Dism issed

W it dra'. ∑ n by AS IC 10

Source: CALDB , Annual Report 2010-2011, p. 14

Financial Reporting Council (FRC)

Reporting requirements

07/08 08/09

6

2

2

1

8

09/10

2

2

10111

2.86 The committee considers that the FRC has met its reporting requirements under section 63 of the Public Service Act 1999, the ASIC Act and the FMA Act.

2.87 This annual report may also be subject to review by the Parliamentary Joint Committee on Corporations and Financial Services (PJC).

Operational matlers

2.88 A new Chair, Ms Lytme Wood , has been appointed to the FRC in March 2011.

2.89 Members agreed on a new three year strategic plan. The Strategic Plan 2011-2014 was agreed to at the Council's meeting on 18 April 2011.52

49 CALDB , Annual Report 20 I 0-2011. p. I .

50 CALDB, Annual Report 2010-2011, p. 1.

51 For a Table

52 Financial Reporting Council, Annual Report 2010-2011, p. L

51

Page 22

2.90 As part of this strategic plan, the Council has identified a number of key projects which will form the focus of the FRC's activities. As a result , members will be working with the wider financial reporting community and will seek to improve the Council's relevance and position in Australia and overseas. 53

Financial Reporting Panel (FRP)

Reporting requirem ents

2.91 The committee considers that the FRP has met its reporting requirements under section 63 of the Public Sen, ice Act 1999, the ASIC Act and the FMA Act.

2.92 This annual report may also be subject to review by the Parliamentary Joint Committee on Corporations and Financial Services (PJC).

Op erationalmatl ers

2.93 The annual report does not contain a breakdown of monies spent per matter referred to the Panel. The committee also notes that the Panel overspent for 2010-2011, ending the financial year with a $64,3 81 deficit.

2.94 The committee notes that the government has decided to disband the Panel and would like to thank its members for their contributions to financial services regulation.

Inspector-General of Taxation (IGT)

Reporting requirements

2.95 The committee considers that the IGT has met its reporting requirements under section 63 of the Public Service Act 1999, the Inspector-General of Taxation Act 2003 and the FMA Act.

Op erational matters

2.96 At the time of reporting the office had completed five out of their seven inquiries and the final two were nearing completion. 54

2.97 Four reports have been publicly released by the Assistant Treasurer. These are as follows: 55

" Review into the Australian Taxation Office's Change Program;

53 Financial Reporting Council, Annual R eport 2010-201 L p. 1.

54 Inspector-General ofTaxation, Annu al Report 2010-2011, p. 2.

55 Inspector-General ofTaxation, Annu al Repm12010-2011 , pp 2-5.

52

Page 23

" Review of aspects of the Australian Taxation Office's administration of private binding rulings ;

" Review into the Australian Taxation Office's administration of the Superannuation Guarantee Charge; and

" Follow-up review into the Australian Taxation Office's implementation of agreed recommendations included in the six reports prepared by the Inspector " General of Taxation between June 2006 and October 2008.

National Competition Council (NCC)

Reporting requirem ents

2.98 The committee considers that the NCC has met its reporting requirements under section 63 of the Public Sen ice Act 1999 and the FMA Act. However, the committee notes that the NCC does not stipulate their reporting obligations under the FMA Act in the Letter of Transmittal ~ or in the 'Annual reporting requirement s and aids to access∑ section of the annual report. 56

Operational matters

2.99 An important development during the year for the Council was the Full Court of the Federal Court of Australia's judgement on various review proceedings relating to the Tribunal's decisions on the declaration of the Hamersley and Robe River Railways operated by Rio Tinto (Pilbara Infrastructure Pty Ltd v Australian Competition Tribunal). 57

2.100 The contested issue related to subsection 44G(2), criterion (b) of the Comp etition and Consum er Act 2010 (CCA) that addresses whether it is uneconomical for anyone to develop another facility to provide the service for which declaration is sought. The Tribunal held that it was uneconomical. 58

2.10 I The N CC emphasised in their report that the Full Court~ s decision, delivered on 4 May 2011, contrasts with and overtums the approach taken to relevant matters by the NCC decision-making Ministers and the Tribunal and they believe this will have significant impact on decision making under state and territory access regimes. 59

56 NCC Annu al Report 2010-2011 , p. 63.

57 N CC Annual Report 2010-2011, pp 5.17-18.

58 NCC Annu al Report 201 0-2011, pp 5, 8.

59 N CC Annual Report 2010-2011, pp 5, 8.

53

Page 24

Productivity Commission (PC)

Reporting requirements

2.102 The committee considers that the PC has met its reporting requirements under section 63 of the Public Service Act 1999, section 10 of the Productivity Commission A ct 1998 and the FMA Act.

2.103 The committee commends the Productivity Commission for including their Senate Estimates appearances in the External Analysis section of the annual report. 60

Op erational matters

2.104 The Conm1ission had seven public inquiries and nine conm1issioned research studies underway at some time during the reporting period. In addition to completing nine references from the previous year, it received seven new projects. 61

2.105 Three new inquiries commenced in 2010-2011:

" an inquiry into Australia's urban water sector;

" an inquiry into the current economic regulation arrangements for airport services; and

" an inquiry into the econom1c structure and perfmmance of the Australian retail industry. 62

2.106 The Australian Government Competitive Neutrality Complaints Office (AGCNCO) , a separate unit within the Conmussion, received six formal complaints during the reporting period. The AGCNCO administers the Australian Government's competitive neutrality complaints mechanism.63

Reserve Bank of Australia (RBA)

Reporting requirements

2.107 The conm1ittee considers that the RBA has met its reporting requirements under section 63 of the Public Service Act 1999 and the CAC Act.

2.1 08 However, the committee notes that the Reserve Bank did not include a Compliance Index.

60 PC . Annual Rep01t 2010-2011, p. 116.

61 PC , Annual Repo1t 2010-2011 , p. 27.

62 PC Annual Report 2010-2011, pp 27-28.

63 PC , Annual Report 2010-2011. p. 33.

54

Page 25

2.109 The committee notes that the RBA did not provide details of ecologically sustainable development and environmental performance 64 as per the JCP AA and PM&C guidelines.

Recommendation 4

2.110 The committee recommends that in their next annual report, the RBA detail their compliance under Section 516A of the Environment Protection and Biodiversity Conservation Act 1999, as outlined in the Requirements for Annual Reports, published by the Department of Prime Minister and Cabinet and

approved by the Joint Parliamentary Committee on Public Accounts and Audit in July 2011.

Op erational matters

2.111 The annual report states that the 2010-2011 financial year was less unusual when compared with the previous two or three years due to more stability in Australia's monetary policies. 65

2.112 Due to the high Australian dollar , the Reserve Bank reports a $4.9 billion overall valuation loss on its assets , which was absorbed by the Reserve Bank Reserve Fund (RBRF).66

2.113 Highlights of the REA's year include increasing international engagement, particularly in groups seeking to implement international regulatory reform. These groups include the Financial Stability Board, the G20 and various committees at the Bank for International Settlements.

67

Superannuation Complaints Tribunal

Reporting requirements

2.114 The committee considers that the Superannuation Complaints Tribunal has met its reporting requirements under section 63 of the Public Service Act 1999 and section 67 of the Superannuation (Resolution of Complaints) Act 1993.

Op erational matters

2.115 The Tribunal implemented the recommendations of an independent 2009 review into the Tribunal's operations . 68

64 Section 516A of the En vironment Protection and Biodiversity Con servation A ct 1999.

65 Reserve Bank. Annual Report 2010-2011, p. 1.

66 Reserve Bank, Annual Report 2010-2011, p. 1.

67 Reserve Bank, Annual Repm1 2010-2011, p. 1.

68 Superannuation Comp laints Tribunal. Annual Report 2010-2011, p. 7.

55

Page 26

2.116 Other milestones for the year include:

" the implementation of a new organisational structure better aligned to the current and future complaints resolution procedures and stakeholder expec ta ti ons ∑

" the establishment of a Leadership team and procedures for decision-making ;

" adoption of a new Vision, Mission and Values;

" establishment and successful implementation of a business support unit and legal team; and

" adoption of a communications strategy. 69

Takeovers Panel

Reporting requirements

2.117 The committee considers that the Takeovers Panel has met its reporting requirements under the ASIC Act.

Operational matters

2.118 A new President was appointed to the Board in September 2010, Ms Kathleen Farrell , replacing her predecessor Mr Simon McKeon. 70

2.119 The Panel has had a busy year with 28 applications, many of which have been time consuming, involving issues relating to association. Two of the matters were subject to judicial review. 71

Senator Mark Bishop Chair

69 Superannuation Complaints Tribunal, Annual Report 2010-201 L p. 7.

70 Takeovers Panel, Annual Report 2010-201 1, p. 3.

71 Takeover Panel, Annual Rep011 2010-2011, p. 3.

56

AASB

ABS

ACCC

ACIP

ACRE

AER

AGCNCO

AIATSIS

AIMS

ANAO

ANSTO

ARC

ARC Act

ARIC

ARPC

ASI

ASIC

ASIC Act

AUASB

CAC Act

CAL DB

Appendix 1

Abbreviations

Australian Accounting Standards Board

Australian Bureau of Statistics

Australian Competition and Consumer Conunission

Advisory Council on Intellectual Property

Australian Centre for Renewable Energy Board

Australian Energy Regulator

Australian Government Competitive Neutrality Complaints Office

Australian Institute of Aboriginal and Torres Strait Islander Studies

Australian Institute of Marine Science

Australian National Audit Office

Australian Nuclear Science and Technology Organisation

Australian Research Council

Australian Research Coun cil Act 2001

Australian Research Integrity Conunittee

Australian Reinsurance Pool Corporation

Australian Solar Institute

Australian Securities and Investment Commission

Australian Securiti es and Investments Commission Act 2001

Auditing and Assurance Standards Board

Commomvealth Authorities and Companies Act 1997

Companies Auditors and Liquidators Disciplinary Board

57

Page 28

CCA

CEO

CGC

CRN

CSIRO

CSP

DIISR

DIISRTE

DLR

DRET

FMAAct

FRC

FRP

GFC

G20

IASB

IBRD

IGT

IP

IPSASB

JCPAA

KPI

NCC

NHMRC

NOPSA

Competition and Consumer Act 2010

Chief Executive Officer

Conm1onwealth Grants Commission

Collaborative Research Network

Conm1onwealth Scientific and Industrial Research Organisation

Concentrated solar power

Department of Innovation, Industry, Science and Research

Department of Industry, Innovation , Science, Research and Tertiary Education

Deutches Zentrumfiir Lufi-und Raumfahrt

Department of Resources, Energy and Tourism

Financial Management and Accountability Act 1997

Financial Reporting Council

Financial Reporting Panel

Global Financial Crisis

Group of Twenty

International Accounting Standards Board

International Bank for Reconstruction and Development

Inspector-General ofTaxation

Intellectual Property

International Public Sector Accounting Standards Board

Joint Committee on Public Accounts and Audits

Key Performance Indicator

National Competition Council

National Health and Medical Research Council

National Offshore Petroleum Safety Authority

58

NOPSEMA

PC

PJC

PM&C

RBA

RBRF

SBSL

TP

Page 29

National Offshore Petroleum Safety and Environmental Management Authority

Productivity Commission

Parliamentary Joint Committee on Corporations and Financial Services

Department of Prime Minister and Cabinet

Reserve Bank of Australia

Reserve Bank Reserve Fund

Small Business Support Line

Takeovers Panel

59

so

Appendix 2

Industry, Innovation, Science, Research and Tertiary Education Portfolio

List of annual reports tabled in the Senate during the period 1 May 2011 to 31 October 2011 -Reporting Body Legislation Date of Date sent Date transmittal to received letter Minister by Minister Department of Financial Manag em ent 4 Oct 6 Oct 6 Oct Innovation, Industry, and AccountabilitY A ct Science and Research 1997 (including IP Australia) Commonwealth Science and Indust1y 19 Sept Scientific and Research Act 1949 Industrial Research Organisation Commonwealth Authoriti es and Compani es Act 1997-section 9 Australian Institute Australian Institute of Aug 30 Sept 30 Sept Aboriginal and Aboriginal and Torres Torres Strait Islander Strait !<;lander Studies Act Studies 1989 - section 4 Commonw ealth Authoriti es and Companies Act 1997-section 9 Australian Institute of Commonw ealth 15 Sept 20 Sept 20 Sept Marine Science Authoriti es and Companies Act 1997-section 9 Australian Nuclear Commonwealth 5 Oct 18 Oct 18 Oct Science and Authorities and Technology Companies Act 1997 Organisation 61 Date

tabled/ presented*

27 Oct

13 Oct

31 Oct

26 Oct

28 Oct

Page 32

Reporting Body Legislation Date of Date sent Date Date

transmittal to received tabled/

letter Minister by presented*

Minister

Australian Research Financial Management 27 Sept 13 Oct

Council and Accountability Act

1997

Australian Research Council Act 2001

62

Appendix 3

Resources, Energy and Tourism Portfolio

List of annual reports tabled in the Senate during the period 1 May 2011 to 31 October 2011

Reporting Legislation Date of Date sent Date Date

Body transmittal to received tabled/

letter Minster by presented*

Minister

Australian Solar Common wealth 30 Sept 7 Oct 7 Oct 21 Oct

Institute Authorities and Companies Act 1997- section 9

C01porations Act 2001

Department of Financial 6 Oct 7 Oct 7 Oct 21 Oct

Resources, Management and Energy and Accountability Act Tourism 1997

National Offshore 14 Oct 19 Oct 19 Oct 28 Oct

Offshore Petroleum and

Petroleum Safety Greenhouse Gas Authority Storage Act 2006

Financial Managem ent and Accountability Act 1997

63

64

Appendix 4

Treasury Portfolio

List of annual reports tabled in the Senate during the period 1 May 2011 to 31 October 2011

Reporting Legislation Date of Date sent Date Date

Body transmittal to received tabled/

letter Minister by presented*

Minister

Auditing and Australian 4 Oct 13 Oct 13 Oct 28 Oct

Assurance Securities and Standards Investments Board Commission Act

(AUASB) 2001-

section 136

Financial Management and Accountabilih∑ Act 1997

Australian Australian 4 Oct 13 Oct 13 Oct 28 Oct

Accounting Securities and Standards Investments Board (AASB) Commission Act 2001-

section 136

Financial Management and Accountability Act 1997

Australian Australian Bureau 20 Sept 13 Oct

Bureau of of Statistics Act Statistics (ABS) 1975 -subsection 24( 1)

Public Service Act 1999-subsection 63(1)

Australian Commonwealth 20 Sept 12 Oct 12 Oct 26 Oct

65

Page 36

Reporting Legislation Date of Date sent Date Date

Body transmittal to received tabled/

letter Minister by presented*

Minister

Reinsurance Pool Awhorities and Corporation Compani es Act (ARPC) 199 7-section 9

Australian Australian 10 Oct 11 Oct 1 1 Oct 27 Oct

Securities and Securities and lnvestments Im∑ estments Comnussion Commission Act 2001 -

section 13 6

Financial Management and Accountabilitv Act 1997

Commonwealth Public Service Act 20 Sept 13 Oct

Grants 1999 - section 63

Commission Com monwea I th Grants Commission Act 2003

Companies Australian 7 Oct 4 Oct 4 Oct 19 Oct

Auditors and Securities and Liquidators Investments Disciplinary Commission Act Board 2001 - section 214

Financial Australian 9 Oct 20 Oct 20 Oct 27 Oct

Reporting Securities and Council Im∑estments

Commission Act 2001

Financial Australian 4 Oct 6 Oct 6 Oct 26 Oct

Reporting Panel Securities and !m'estments Commission Act 2001 - section 239AM

Inspector- Inspector-G eneral 30 Sept 7 Oct 7 Oct 26 Oct

General of of Taxation Act

66

Page 37

Reporting Legislation Date of Date sent Date Date

Body transmittal to recei"ed tabled/

letter Minister by presented*

Minister

Taxation 2003-

section 41

Financial Management and AccountabilitY Act 1997

National Financial 29 Aug 4 Oct 4 Oct 19 Oct

Competition Management and Council Accountability Act 1997

Productivity Fina11cial 20 Oct 20 Oct 20 Oct 28 Oct

Commission Management and

Accoumability Act 1997

Productivi (V Commission Act 1998

Reserve Bank Commonv. ealth 9 Sept 4 Oct l3 Oct

of Australia Authorities and Companies A ct 1997- section 9

Superannuation Superannuation 9 Sept 15 Sept 15 Sept 27 Oct

Complaints (Resolution of Tribunal Complaints) Act

1993-section 67

Takeovers Panel Australian 4 Oct 13 Oct 13 Oct 27 Oct

Securiti es and Investments Commission Act 2001-section 183

67

68

Appendix 5

Portfolio structure for the Industry, Innovation, Science, Research and Tertiary Education Portfolio 1

Minister for Tertiary Education, Skills , Science and Research ' Senator the Hon Chris Evans

Minister for Industry and Innovation' The H.on Greg Combe! AM MP

Minister for Manufacturing3 Senator the Hon Kim Carr

Minister for Small Business" Senator the Hon Marll Arlilb

Parliamentary Secretary for Industry and Innovation ~ The Hon Mark Dreyfus QC MP

------------ ∑---- ,

Department of Industry. Innovation, Science. Research and Tertiary Education Secretary: Dr Don Russell

........ .................. ..... ................. ........... ..... ....... ..... ............ ..... ......... ..... ............. 1

Agency-Australian Nuclear Science and Technology Organisation (ANSTO) Chief Executive Officer: Dr Adi Paterson

Agency- Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS} Principal (CEO) : Mr Russell Taylor

Agency- Australian Research Cou ncil (ARC) ChiefExecutive Officer: Professor Margaret Sheil

Agency- Australian Skills Quality Authority (ASQA) Chief Commissioner: Mr Chris Robinson

Agency- IP Australia Director Genera l: Mr Philip Noonan

Agency- Commonwealth Scientific and Industrial Research Organisation (CSIRO ) Chief Exec utive Officer: Dr Megan Clark

Agency- Australian Institute of Marine Science (AIMS ) Chief Executive Officer: Mr John Gunn

Agency- Tertiary Education Quality and Standards Agency (TEQSA ) Chief Com m issioner: Dr Carol N icoll

1 Portfolio Additional Estimates Statements 2011-12, Innovation, Industry, Science, Research and Te1iiary Education portfolio, p. 4.

69

70

Appendix 6

Portfolio structure and outcomes for the Resources, Energy and Tourism Portfolio 1

PortfoliO< M iniste r ,. is1~r for Reso~ and 91~ ∑ ß ∑ t.erforT . m The rion in Fergu AMM:.J

Dl?partnaent ~f ~-.ou r ce-s. En(:>rgy and Tourism .?ortf !io Secr .. tary M" Drew Clarke

OutcomE∑ 1 : ~ lJi9rO\ "e.a strength. con-pe " iven:ss and susta:~ ability of e resources. energy and touri!r

enhance Australa'!i prO'l>perity tnr B trr.p.,iii:m?.ntafu of 9011 er man! p 1;!y and nrograms.

~oscie;no:e Australia

<::rne"' E:xec.uftve ∑ -er ::Jr ~hr i s Agra ,

Outconw 1: Informed go\'e tre and ;:< ;vu-c.-m :mt.'i l a ;agE!n'En m £;

na: ∑ n's natural resou oes f roug ∑ emb g acc~ss to gl!!e>r.ci:!n ∑ ∑ 1:: and :spatial

in-nf'ITL"iti::l .

fobtional Offs..hote Petrole-um Saff' y and 8w irc0nm ntal l!anag~me-n A thority

Q-rie " Ex~cur i lte Cif ::.e : 'As Jane utl2r

OutcOJme . 1: A Australia oi! and gas indus.try that prop2rly contro.s the hea1t1 a.rn:! sa~ ett is ~.s to the w ort..i' orce at 5

of shore ~tro lt. m opE;ratbns.

Tourio;;m Austr.aiia ~ aghg Director

∑ 1- " .O.ndr.ew tEvo~∑

Ou oom ~ 'e: ~reas1: demand for

.4ustralia acs a cesthaf10t1. !>

market ~ g, trade o.:ve!opm:nt and

resea;c aotrvities.

Australian Sota.r 1nstitu.ti' ::Xec' tive Director tvt k Tw ∑ e

Outoom , e-∑ 1: Er'ICO'Jtag-e inn:;)vatro.n a:nd< cos' e "fecl;ot.e deve$:>pm:! ts in s'Oia " ~nergy ~ecl'!'nobgies to .:Jooeera .e:

carrmerc∑ -1 depby~m tnrough k fJ.'~# cl

1 Portfolio Additional Estimates Statements 2011-12, Resources, Energy and Tourism portfolio, p. 6.

71

72

Appendix 7

Portfolio structure and outcomes for the Treasury Portfolio 1 Pflrtf olio !Minister- Deputy Prtme Ministe; and Treasurer 7he " ;:.n '~l ayne Swan MP

Assf:st.m Treasura-S81.1l01' the H:x. Marie Art:fu 1\.finiSMrfor Financial Secr.∑ii:eS and Super.anmra ion The H:x. $mr.em MP

M.inister lor Hous ing and HomeiBsn .ess Th ¨ He n Rob ert Mcl:le- and M? Parliament.My S1!:Cretaly1o the Treasurer Tl:e Ho n tla "Ji-; B r.ac.b u~ ilP

Departn~nt o-f the TreilSUry

-Eo.~ -~j : D M;utir. p,-'in$on

lnfom'le.d ~sions oo th ¨! develcpment a:nO impleme- rnaiic n ci policie!> tc rJie ti".e we..heir ..g of !he Aus:ra f~ peep " illc lu ~ ::w, adu ev∑ ~s strong, sus1ainable .ec=m:-c grm∑&l. tr.ro utJh ~ prov skm of ac\ " ite ;:.o cr .. .,rt'IMeJ\ 1 G!'.d :he ef.b.ent adrmll'Strateo of federal fin-cr.;" ∑ remio:

Austrafian Bureau of St.1.1istics St:;:: tsti:l iiSn: ,,, Bri..., Phk

:o:me:i tko~~ ∑cns. researcll ~d c:s:usskm " .ilh in QOV~Il'J:nts . and ':he <:errll"II Xl . " y ∑ "l ea ~.g !he rªl ec±ID

E

a :! ~ ' sts snd P"C!!isioo of ~ ∑ , ~e a ~ "*'~

Australian Competition .and Consumer Comm ission Chllnmn: f1'∑ ROO Si" s

La-wrul COJ-npe,-jtic n. ccnsum::r p;o:ectcn. an re~ ∑ at.:d -:∑ i!lal ∑ ∑~~ra roo.~e.s. a-nd servie ¨'S >hw-gh guiwion, cl1.13m.g anforoe: l'l l~ . -eill.lCalion, ;:o:i ~ rr:enil. oring am i de:1errn1ning t!'l e 1erm s of acces>. il es

Australian Offic.e of Ftnancial Management :::: -3 :=xecu:rue Offio:-r: " Reb en icl'lo ll

The a~ ".1ncerr.ent of :m.. "i~t!l:Cn om ic p!C'Hli-o :and s-:ab ~ " " :m d tM effE'<. "''iv ~ Ol>=f3too '; inrcia. ma:tet:s, thrti!Jgi 15.9. ∑ ng cet:rt. 1nvesling m financi .:.:l ass&!S aoo ma n g c-ebt, m\'Slm!?TllS a:J'l ::as. fer ~he Australian Go~-em. 'l"! e n1

-∑ rrr..m: t,' .r~ ' A~::rait

C\Jtr..ool;;! ~ : l rn;:rw~d OJnfulenre 1n finarr..a ma e∑ i nt~rit}' ami ~c.1ioo Df "es:~ and co; sume-rs thcoogh reS, ∑ emin and bm ines:s fa:c alien Sfi:."Vi::l:s

Au~tralia.n Taxati

Ccrr.miSJcner: t.fr 1::hae D 'Ascenzo .4

Con1ideru:e in the atL7!inistt∑ti on of a.spe::ts -Aus;ra,a's; t.ua l:il >td sup=.-ann :ion s:y:ct;;m.s 1hro..;gh he ng peDJ: " " u00s"s.:af1C! eir ng h~ and cbhp

C-ommo n"l\~ lt h G rants Commi3£ion

~n=; .ary: Mr J " Sp3.S1l]E\!ic

lnfcmr..ed :::--c:RmwJ:nl d;;,::is tcns or. ff-scal ~q u :a lis a tic n ¨tv.s:n :he S!;Jt.;; s and T,;rril:ori e-s ihrou;:t. ~∑: i ce .~d reo:::mm~:t:aS on the d,str.bur;:n ' GST :'iE! J.e .md . ;:al i'~! ~reo graJT..s.

1 Portfolio Additional Estimates Statements 2011-12, Treasury portfolio, pp 6-7.

73

Page44

Corpoca tions and 11\arke-ts Adv isory Committft Canvenar. Ms Joanr;e Reas,

lntrnn~ dEE!isicns. ~! Go-;. ;mm;

~od u c-.s. s.ef'it~ es arlO m. 1 r~o:ts thrcA.Jgh indeDGflcienl a:"d E:>:tEfi adl!lce

J

lnspector-Genl.'r al .of Taxation ! n sp~or-Ge n &aL ~ A N.croozi

~~~tax admin'IS1r.>liao mrolcil cororr.t.mitv c:onstf; aucn. review an::! io~nden: a.don;e to G ::r,;ernm em

I

Naltonal' Com petiti on Councif ?t.;:-sita'l:: Mr Da\'id Cr.u\fvn:t

Comp<::ilicm tn maf .ets tiu.: are d~:pe.roent o ar..ce;<; io r.<>:t:;rol !y sigriPic.;nt Jroflop:iy infra:.:rurtt..."E . t'lro ugh r e.C>::c'l'll11~s. an::i decis:1:ns. promocin~ ti"

I

Office of the Au

The forr.rul<>, ion and ma. g of auditing 311d assur. nee smrn.mls !hat an: used by aiJCi~::>""S ci Austr-tan entitvflnaw∑ a re.oorts: ocfcr ctna-aucfll:iig and as:suraoce enga;.~ts I

Offic.e of the Australiari A{x:oul'l' ting Standards Boo rd Cl\..~rm n: Mr Ke-<'in St~~re- , SOil

ne W..'mll.i: ' 3'Wl m aking c" aro:>un!trQ stWtdan:is

Produd:ivir; Commission Chairma n: M r Gary '3ank:s AO

Well-inforf"l .ed poHq "ds:: i sia n- m<~king and pubflc " ders-~~.m n g on m;;.it.."''S relatinp to A " straliiil s t-rodu;::: .\~ii;t and lt.rng

Ro yal Australian tAi t eJ E.xeo.m ∑e 00!...~ ∑ Ross Ma.cDia1111id

The ~e eerlso :ft e Aus a!ian eoot~omy . ctL'?Ctors.am fcre~g ooumries ~ et routr .the m.:mura:::t ur;;: ´n!! S<~le oi orcu.a.!ir~ c.cins_ oo1 ¨C:c r cons and other mr.~ like ~u :::::;

74

The Senate

Education, Employment

and Workplace Relations

Legislation Committee

Annual repotis (No. 1 of2012)

75

March 2012

©Commonwealth of Australia 2012

ISBN 978-1-74229-569-5

Printed by the Senate Printing Unit, Parliament House, Canberra

II

76

MEMBERSHIP OF THE COMMITTEE

Members

Senator Gavin Marshall, Chair, ALP, Vic.

Senator Chris Back, Deputy Chair, LP, W A

Senator Catryna Bilyk, ALP , Tas

Senator Bridget McKenzie, Nat., Vic.

Senator Lee Rhiannon, AG, NSW

Senator Matt Thistlethwaite, ALP, NSW

Secretariat

Mr Tim Watling, Secretary

Ms Bonnie Allan, Principal Research Officer

Ms Natasha Rusjakovski, Senior Research Officer

Mr J arrod Baker, Research Officer

Ms Ashleigh Webb, Administrative Officer

PO Box 6100 Parliament House Canberra ACT 2600

Ill

77

Ph:02 6277 3521 Fax: 02 6277 5706

E-mail: eewr.sen@ aph.gov.au

78

Table of Contents

MEMBERSHIP OF THE COMMITTEE ...................................................... iii

CHAPTER 1 ........................................................................................................ !

Introduction .............................................................................................................. ]

Terms of reference .................................................................................................. I

Role of annual reports .... .............. ................................. ............. ........................... . 2

Annual reports referred ........................................................................................... 2

Reports not examined ................................ ............................................................. 3

Method of assessment. ..................... ....................................................................... 3

Timeliness in tabling annual reports ...................................................................... 4

General comments on reports ................................................................................ .4

CHAPTER 2 ........................................................................................................ 5

Review of annual reports .......................................................................................... 5

Australian National University .... ........................................................................... 5

Office of the Australian Building and Construction Commissioner ...................... 6

Fair Work Ombudsman .......................................................................................... 6

Fair Work Australia ............... ............................................................. .................... 7

National Report to Parliament on Indigenous Education and Training, 2008 ....... 8

Comments made in the Senate ............................................................................... 8

Bodies not presenting annual reports to the Senate ................................................ 8

APPEND IX 1 ....................................................................................................... 9

Allocation of annual reports to the committee ...................................................... 9

APPENDIX 2 ..................................................................................................... 11

Compliance table of annual reports referred ...................................................... 11

APPENDIX 3 ..................................................................................................... 17

79

Administrative Arrangements Order for the Department of Education, Employment and Workplace Relations ................................................................ l7

80

CHAPTER!

Introduction

1.1 This is the Senate Education, Employment and Workplace Relations Legislation Committee's (the committee) first report on annual reports for 2012. It provides an overview of the committee's examination of annual reports for the 2010-11 financial year.

Terms of reference

1.2 This report was prepared pursuant to Standing Order 25(20) relating to the consideration of annual reports by committees. The Standing Order states:

Annual reports of departments and agencies shall stand referred to the committees in accordance with an allocation of depa11ments 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 rep011s.

(d) In conside1ing 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 rep011s of departments and budget-related agencies in conjunction with examination of estimates.

(f) Report on annual reports tabkd 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.

(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 repmis. 1

Amended 24 August 1994. 13 February 1997. 11 Novemb er 1998. 3 December 1998, 13 Febmary 2002, I9 Novemb er 2002, 14 August 2006: with eff ect.fi ∑ om II SepTember 2006. 13 May 2009: with effect on I4 May 2009.

81

Page 2

Role of annual reports

1.3 Annual reports place a great deal of information about government departments and agencies on the public record. Accordingly the tabling of annual reports is an important element of accountability to Parliament , assisting in the effective examination of the perforn1ance of departments and agencies, and the administration of govemment programs.

Annual reports referred

1.4 In accordance with Senate Standing Order 25(20)(f) this report examines those annual reports tabled between 1 May 2011 and 31 October 20 Il. The committee examined the following reports:

Departmental Reports

" Annual National Report of the Australian Vocational Education and Training System 2009

" National Report to Parliament on Indigenous Education and Training, 2007

" National Report to Parliament on Indigenous Education and Training, 2008

Statutmy authorities /bodies

" Safe Work Australia - Report for 201 0- 11

" Australian Building and Construction Commissioner-Report for 20 I 0- 11

" Fair Work Australia- Report for 2010-11

" Fair Work Ombudsman- Report for 20IO-ll

" Seafarers Safety, Rehabilitation and Compensation Authority - Report for 20 I 0-1 I

" Ski lis Australia- Report for 201 O-I1

Commonwealth authorities (under the CA C Act)

" Australian National University- Report for 20 I 0

" Com care - Report for 20 I 0-1 I

Commonwealth companies under the CAC Act

" Australian Institute for Teaching and School Leadership Limited- Report for 2010-11

" Australian Learning and Teaching Council Limited-Report for 2010- 11

1.5 The Australian Learning and Teaching Council presented its final report. Its functions have been transferred to the Department of Education, Employment and Workplace Relations.

82

Page 3

1.6 The tabling dates of these reports are listed at Appendix 2. Details of all annual reports referred to the committee are set out at Appendix 1.

Reports not examined

1. 7 The committee is not obliged to report on Acts, statements of corporate intent, surveys, corporate plans or errata. The following documents were referred to the committee but not examined:

" Schools Assistance Act 2008. Report on financial assistance granted to each state in respect of 2009

" Report to the Commonwealth , made under Section 24 of the Air Passenger Ticket Levy (Collection) Act 2001, for the period 1 April 2010 to 31 March 2011

" Report to the Commonwealth, made under Section 138 of the Schools Assistance (Learning Together - Achievement Through Choice and Opportunity) Act 2004, for the 2009 funding year

" International Labour Organisation, Submission report on ILO instrument HIV and AIDS recommendation, 2010 (no. 200)

" Report to the Commonwealth , made under Section 4 of the Social Security and Other Legislation Amendment (Income Support for Student5) Act 2010-Revievv o_f student income support reforms, dated July 2011.

Method of assessment

1.8 Senate Standing Orders require the committee to examine the annual reports referred to it to determine whether they are timely and ∑apparently satisfactory'. In making this assessment, the committee considers whether the reports comply with the relevant requirements for the preparation of annual reports of departments and authorities.

1.9 The requirements are set down in the following instruments:

" for portfolio departments: the Public Service Act 1999, sections 63(2) and 70(2), and the Requirements for Departmental Annual Report, for Departments, Executive Agencies and FJ\1A Act Bodies, Department of Prime Minister and Cabinet, revised June 2008;

" for Commonwealth authorities and companies: the Commonwealth Authorities and Companies Act 1997, in particular sections 9 , 36 and 48; and

" for non-statutory bodies: the guidelines are contained in the Government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies, Senate Hansard, 8 December 1987, pp 2643-45.

83

Page4

Timeliness in tabling annual reports

1.10 Standing Order 25(20)( c) requires the committee to repm1 to the Senale on the late presentation of annual reports.

1.11 Annual reports must be tabled in Parliament by 31 October each year, except where an agency's own legislation specifies a timeframe for its annual report. 2 Those agencies reporting under the Common wealth Authoriti es and Companies Act 1997 are required to provide their annual reports to the minister by the 15th day of the fourth month after the end of the financial year. Where the financial year ends on 30 June, this deadline translates to 15 October. 3

1.12 The committee recognises that some agencies are required to comply with other timefrarnes stipulated in their enabling legislation , such as 'as soon as practicable after 30 June'. Nonetheless, the committee reminds all agencies that the government considers it best practice for annual reports to be tabled by 31 October each year.

General comments on reports

1.13 The committee has found, under the terms of standing order 25(20), that all but two of the reports described here are apparently satisfactory . In making this assessment, the committee considers aspects such as the timeliness of presentation and compliance with relevant reporting requirements. The committee notes that the National Report to Parliament on Indigenous Education and Training 2007 and the National Report to Parliament on Indigenous Education and Training 2008 were not submitted in a timely manner.

2 Department of Prime Minister and C abinet, Requirem ents for Annual Reports for Departments. Execwive Agencies and FMA Act Bodies, June 2009, p. 1.

3 Com111 omvealth Authoriti es and Co111panies Act 1997, section 9.

84

CHAPTER2

Review of annual reports

1.1 Tlus chapter examines selected annual reports in greater detail , and provides the Senate with information that may be of particular interest. The reports of the Australian National University, the Office of the Building and Construction Commission, the Office of the Fair Work Ombudsman , Fair Work Australia and the National Repoti to Parliament on Indigenous Education and Training 2008 are discussed in this chapter.

Australian National University

1.2 The Australian National University (ANU) recorded a series of strong results in its 2010 annual report. The university was ranked 43rd in the Times Higher Education's world university rankings, and was the top Australian university in the Shanghai Jiao Tong world university rankings. Staff of ANU won over $96 million in research grants and consultancies, and five were admitted into the national academies joining the 271 current members from ANU. The university recorded a surplus of

$142 million in 2010.1

1.3 On 8 May 2010 ANU signed a Memorandum of Understanding (MoU) with the Commonwealth:

The MoU recognises that ANU holds a special place as a strategic endowment for the nation and the unique place of ANU in the national education system. A key element of this strategic relationship is the role of ANU in providing education and research to enhance public policy expertise and knowledge transfer at a national level. The Commonwealth

has provided funding to ANU for the establishment of three major centres: the Australian National Institute for Public Policy, the Australian Centre on China in the World and the National Security College, where researchers and students are engaged in innovative thinking around the broad variety of critical public policy challenges and building the creative capacities of Australian public servants and public policy academics. 2

1.4 The ANU has continued to undertake significant infrastructure developments to meet future student accommodation needs and ensure that the university IS equipped with the necessary facilities to remain a world-class research institute. 3

1 Australian National University , ANU Annual Report 2010, pp. 5-7.

2 Australian National University , ANU Annual Report 2010 p. 28.

3 Australian ational University , ANU Annual Report 2010 p. 35.

85

Page 6

Office of the Australian Building and Construction Commissioner

1.5 The Office of the Building and Construction Commissioner (ABCC) is responsible for ensuring that building and construction work is carried out for the benefit of all building industry participants and for the benefit of the Australian economy as a whole. The annual report is of a satisfactory standard, reporting major developments and providing information about the operations of the ABCC on the public record.

1.6 The report detailed a number of operational changes that would improve its capacity to meet its statutory goals. On 1 March 2011 it assumed full responsibility for investigating wage and entitlement claims in the industry. Previously , all wage and entitlement claims were forwarded to the Fair Work Ombudsman for investigation . In April 2011 a MoU was signed between ABCC and the Department of Immigration and Citizenship facilitating the exchange of information for the monitoring of labour agreements and the use subclass s. 457 visas. 4

1. 7 The report also includes infom1ation regarding ABCC's perfonnance bonus system that provides high-performing staff with the possibility of earning a bonus of up to 20 per cent of their base salary . In 201 0- 1 l, $1 459 5 50 was paid to 136 employees in perfom1ance bonuses. As at 30 June 2011, 151 staff were employed by ABCC. 5

Fair Work Ombudsman

1.8 The Fair Work Ombudsman (FWO) is an independent statutory agency promoting ham1onious, producti ve and cooperative workplace relations and ensuring compliance with Australia's workplace laws.

1.9 One of the key goals of FWO is the provision of education and advice to stakeholders. In 20 I 0-11 FWO assistance through Live Help (an online 'chat' service) increased by 55 per cent to 54 743 sessions . Email and postal requests for assistance also increased significantly , rising 61 per cent. In addition , 825 218 calls for assistance and advice were answered by the Fair Work Infoline. FWO also completed 22 013 educational visits and provided 32 053 education packs to employers. 6

1.1 0 FWO's report notes a particular need to support vulnerable employees and to educate them about their rights . To this end, Fair Work Advisors and Inspectors attended 19 universities during Orientation Week activities to answer questions and

4 Office of the Au stralian Building and Con struction Commissioner. Annual Report 2010-1 I, p. 29.

5 Office of the Australian Building and Construction Commis sioner, Annual Report 201 O-Il. pp 91 -92.

6 Fair Work Ombudsman. Annual Report 20f(}- f/, pp 18- 19.

86

Page 7

provide advice to young people. An information campaign using emails and postcards was instigated to advise international students of their work rights . 7

1.11 The report shows a significant increase in the number of employer campaign audits finalised for 2010-11. The number of audits finalised in 2010-11 was more than 84 per cent higher than in 2009-10. These campaign audits provide information and education followed by a period of auditing during which time employers are encouraged to improve their business practices and rectify any shortcomings. In 2010-

11, national and regional campaigns resulted in 6 779 audits being finalised and more than $4.7 million recovered for 7 613 employees. 8

1.12 The report from FWO highlights a 38 per cent reduction in external legal fees in 20 l 0-ll. This reduction was attributed to the significant amount of legal work being undertaken by FWO's in-house legal team, and it was estimated that the cost of litigation in the Federal Magistrates Court can be halved by using in-house legal

staff. 9 Since 18 August 2008 FWO has been authorised to use in-house lawyers to conduct underpayment litigation, and since 27 June 2011 it has been authorised to use in-house lawyers to cover civil-penalty litigation matters including sham contracting , discrimination and general protection matters.

10

Fair Work Australia

1.13 Fair Work Australia (FW A) is Australia's national workplace relations tribunal. It is an independent body with power to carry out a range of functions including, but not limited to, establishing minimum wages, making enterprise agreements, regulating industrial action, and resolving a range of collective and individual workplace disputes.

1.14 On 3 June 2011 the Minimum Wage Panel of Fair Work Australia handed down its decision to increase all modern award minimum weekly wages and most transitional instrument wages by 3.4 per cent. The national minimum wage for award/agreement-free employees was set at $589.30 per week. The casual loading for employees not covered by an award or agreement was set at 22 per cent. 11

1.15 The annual report lists significant cases that were considered during the reporting period. Among others, the Equal Remun eration Case (ERC) was discussed, which concerns an application for an 'equal remuneration order' to address alleged pay discrimination against women in social , community and disability services throughout Australia (the SACS industry). The Full Bench found that there is not equal

7 Fair Work Ombud sman , Annual Report 2010-11, p. 28.

8 Fair Work Ombud sman , Annual Report 2010-11, pp 30-33.

9 Fair Work Ombud sman , Annual Report 2010-11, p. 72.

10 Fair Work Ombudsman , Annual Report 20 I 0-11, p. 72.

11 Fair Work Au stralia , Annual Report 2010-1 I, pp 17-18.

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Page 8

remuneration for men and women workers for work of equal or comparable value in the SACS industry by comparison with workers in state and local government employment and that tlus disparity was partly gender driven. 12

1.16 Three members departed during the 2010-11 financial year: Senior Deputy President Camvright; Commissioner Foggo; and Commissioner Larkin. 13

National Report to Parliament on Indigenous Education and Training, 2008

1.17 The National Report to Parliament on Indigenous Education and Training 2008 was tabled on 10 May 2011 along with the National Report to Parliament on Indigenous Education and Training 2007. The National Report to Parliament on Indigenous Education and Training had not been produced since the 2006 edition was published in 2008. The report contains quantitative infom1ation on indigenous education and how it measures against relevant established benchmarks. The report is in compliance with reporting requirements established in section 17 A of the Indigenous Edllcation (Targeted Assistance) Act 2000. The conm1ittee strongly encourages the timely tabling of future reports on indigenous education to provide Parliament with the information necessary to properly assess indigenous education programs and progress.

Comments made in the Senate

1.18 The committee is obliged, under Senate Standing Order 25(20)(d), to consider any remarks made about these reports in the Senate. The committee is satisfied that there were no comments to consider for these reports.

Bodies not presenting annual reports to the Senate

1.19 The committee is required to report to the Senate each year on whether there are any bodies not presenting annual reports to the Senate which should. The committee is satisfied that there are no such bodies at this time.

Senator Gavin Marshall

Chair

12 Fair Work Au stralia , Annual Report 2010-11, pp 30-31.

13 Fair Work Au stralia . Annual Report 2010-11, p. 5.

88

APPENDIX 1

Allocation of annual reports to the committee

Education, Employment and Workplace Relations

" Department of Education, Employment and Workplace Relations

Education

" Australian Curriculum, Assessment and Reporting Authority

" Australian Institute for Teaching and School Leadership Ltd [Teaching Australia]

" Australian Learning and Teaching Council Limited [formerly the Carrick Institute]

" Australian National Training Authority National Report [Australian vocational and further education and training system]

" Australian National University (ANU)

" Department of Education, Employment and Workplace Relations

" Indigenous Education (Targeted Assistance) Act 2000-lndigenous education and training-National report to Parliament

" Schools Assistance (Learning Together- Achievement Through Choice and Opportunity) Act 2004- Repot1 on financial assistance granted to each state in respect of

" Schools Assistance Act 2008 - Report on financial assistance granted to each state in respect of

Employment and Workplace Relations

" Air Passenger Ticket Levy (Collection) Act 2001

"

"

"

"

"

Australian Building and Construction Conm1issioner

Australian Industrial Relations Commission and Australian Industrial Registry

Coal Mining Industry (Long Service Leave Funding) Corporation

Comcare Australia

Defence Force Remuneration Tribunal 1

" Department of Education, Employment and Workplace Relations

" Department of Education, Employment and Workplace Relations " Agreement making under the Workplace Relations Act 1996

Forwarded to the Foreign Affairs. Defence and Trade Committee also.

89

Page 10

"

"

"

"

"

"

"

"

Fair Work Australia

Workplace Authority

Fair Work Ombudsman

Remuneration Tribunal

Safe Work Australia

Safety, Rehabilitation and Compensation Commission

Seafarers Safety, Rehabilitation and Compensation Authority (Seacare)

Skills A ustra1ia

90

APPENDIX2

Compliance table of annual reports referred

List of annual reports referred by the Senate to the committee during the period 1 May 201 L to 3 l October 20 11

Education, Employment and Workplace Relations portfolio

Body/Report Enabling legislation and Letter of Submitted Presented Tabled Timeliness

timeliness Transmittal to/Received out of session Date by Minister

Austral ian Institute for Teaching Commonwealth AuthorWes 14/09/2011 28/10/2011 Reps: On time

and School Leadership Ltd and Companies Act 1997 31/l 0/20 ll

(Teaching Australia)- Report for 20 10-ll Senate:

31 I l 0/20 ll

Australian National Training Skilling Australia's Workforce - 1 0/02/2011 I Reps: On time

Authority National Report Act 2005 07/04/20 II 11 /05/2011

(Australian Vocational and Further Education Training Senate:

System) 11/05/201 1

Australian National University Australian National 25/03/2011 15/04/201 1 I Reps: On time

2010 University Act 1991 15/04/2011 14/05/2011

Senate: 14/05/2011

Page 12

Body/Report

Indigenous Education and Training- National Report to Parliament 2007

Indigenous Education and Training-National Report to Parliament 2008

Report to the Commonweatlh made under Section 24 of the Air Passenger Ticket Levy (Collection) Act 2001 for the period 1 April 2010 to 31 March 2011

Report to the Commonwealth made under Section 172 of the Schools Assistance Act 2008-Report on financial assistance granted to each state in respect of2009

Enabling legislation and timeliness

Indigenous Education (Targeted Assistance) Act 2000

indigenous Education (Targeted Assistance) Act 2000

Section 24 of the Air Passenger Ticket Levy (Collection) Act 2001

Section 172 of the Schools Assistance Act 2008

Letter of Submitted Presented Tabled Timeliness

Transmittal to/Received out of session Date by Minister

- 29/09/201 0/ Reps: !.ate

29/09/20 l 0 26/10/20 l 0

Senate: 26/l 0/20 I 0

- 15/09/20 I 0/ Reps: Late

08/10/2010 28/l 0/20 I 0

Senate: 16/11 /201 0

- 04/07/20 II Reps: On time

04/07/20 II

Senate: 05/07/201 1

Reps: On time

24/03/2011

Senate: l 0/05/201 L

lO

c..>

Body/Report

International Labour Organisation- Submission report on I LO instrument I HV and AIDS recommendation 20 L 0 (no 200)

Report to the Commonwealth made under Section 4 of the Social Security and Other Legislation Amendment (Income Support for Students) Act 20 I 0-

Review of student income support reforms July 2011

Australian Learning and Teaching Council-Report for 2010-11

Safety, Rehabilitation and Compensation Commission-Report for 20 I 0-1 1

Enabling legislation and Letter of timeliness Transmittal

Date

Section 4 of the Social 08/07/20 ll Security and Other Legislation Arnendment (Income Support for Students) Act 2010

Commonwealth Authorities and Companies Act 1997

Safety, Rehabilitation and Compensation Act 1988

Page 13

Submitted Presented Tabled Timeliness

to/Received out of session by Minister

25/05/201 1 I Reps:

25/05/2011 15/06/20 II

Senate: 15/06/20 ll

08/07/201 I I Reps: On time

08/07/201 1 14/09/20 L I

Senate: 14/09/2011

24/08/2011/ Reps: On time

05/09/2011 12/10/20 II

Senate: 12/ I 0/2011

18/ I 0/2011 Reps: On time

26/10/2011

Senate:

13

Page 14

Body/Report Enabling legislation and Letter of Submitted Presented Tabled Timeliness

timeliness Transmittal to/Received out of session Date by Minister

31 /10/20 II

Oftice of the Australian Building Building and Construction 30/09/2011 27 /10/20 II Reps: On time

and Construction Commissioner Industry Improvement Act 31 /1012011

- Report for 20 I 0-ll 2005

Senate: 31 I I 0/20 II

Fair Work Austral.ia- Report for Fair Work Austra/;a Act 2009 30109120 ll 28 /10/2011 Reps: On time

20 I 0-11 26110/20 l L

Senate: 31/10/2011

Onice of the Fair Work Fair Work Australia Act 2009 15/09120 L I 2 L/10/20 1 l Reps: On time

Ombudsman- Report for 20 I 0- 31/1012011

1 1

Senate: 31 I I 0120 L I

Seafarers Safety, Rehabilitation Seafarers Rehabilitation and 25108/2011 18/10/2011 Reps: On time and Compensation Authority - Compensation Act 1992 26/10/2011

Report for 20 I 0-L 1

Senate: 31/10/2011

<0

01

Body/Report

Skills Australia- Report for 2010-11

Com care- Report for 20 I 0-11

Enabling legislation and Letter of timeliness Transmittal

Date

Skills Australia Act 2008 14/10/2011

Safety, Rehabilitation and Compensation Act /988

Page 15

Submitted Presented Tabled Timeliness

to/Received out of session by Minister

28/10/2011 Reps: On time

31/10/2011

Senate: 31/L0/20 1 J

18/10/2011 Reps: On time

26/10/20 ll

Senate: 31 /10/20 II

15

APPENDIX3

Administrative Arrangements Order for the Department of Education, Employment and Workplace Relations

[Extract from the Administrative Arrangements Order, made on 14 September 201 OJ

PART 6 THE DEPARTMENT OF EDUCATION, EMPLOYMENT AND

WORKPLACE RELATIONS

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Matters dealt with by the Department

Education policy and programs including schools, vocational, higher education and Indigenous education , but excluding migrant adult education

Education and training transitions policy and programs

Science awareness programs in schools

Training, including apprenticeships and training services

Policy, co-ordination and support for education exports and services

Income support policies and programs for students and apprentices

Employment policy, including employment services

Job Services Australia

Labour market and income support policies and programs for people of working age

Workplace relations policy development, advocacy and implementation

Promotion of flexible workplace relations policies and practices

Co-ordination of labour market research

Occupational health and safety, rehabilitation and compensation

Equal employment opportunity

" Work and family programs

" Services to help people with disabilities obtain employment, other than supported employment

" Youth affairs and programs

" Early childhood and childcare policy and programs

" Co-ordination of early childhood development policy and responsibilities, including Indigenous early childhood development

97

9B

The Senate

Environment and Communications Legislation Committee

Annual reports (No.1 of2012)

March 2012

99

©Commonwealth of Australia 2012

ISBN 978-1-74229-570-1

This docwnent was printed by the Senate Printing Unit, Parliament House, Canberra

100

Membership of the Committee

Members Senator Doug Cameron (ALP , NSW ) (Chair) Senator Mary Jo Fisher (LP, SA) (Deputy Chair) Senator Catryna Bilyk (ALP , TAS) Senator Bridget McKenzie (NATS , VIC) Senator the Hon Lisa Singh (ALP , TAS) Senator Larissa Waters (AG , QLD)

Committee Secretariat Ms Sophie Dunstone, Acting Secretary Ms Jacquie Hawkins, Research Officer

Committee Address Senate Standing Committee on Environment and Communications PO Box 6100 Parliament House Canberra ACT 2600

Tel: 02 6277 3526

Fax: 02 6277 5818

Email: ec.sen@ aph.gov.au

Internet: www .aph.gov.au/Parliam entarv Bu siness/Co mm ittees/Senate Co mm ittees'!ur.l=ec ctte/index.hnn

Ill

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102

Contents

Membership of the Committee lll

Report to the Senate

Introduction 1

Annual reporting requirements 2

Apparently satisfactory 2

Purpose of annual reports 2

Changes to portfolio responsibilities 3

Reports referred to the committee 3

Depat1ments and executive and prescribed agencies 3

Statutory authorities 4

Non-statutory body 4

Conm1onwealth companies/Governn1ent business enterprises 4

Repm1s on the operation of Acts 4

Timeliness 5

Remarks made in the Senate 6

Comment on certain annual reports 6

Department of Broadband, Conmmnications and the Digital Economy 6

Australian Communications and Media Authority 7

Department of Climate Change and Energy Efficiency 8

Department of Sustainability, Environment, Water, Population and Communities 9

National Water Commission 10

General conm1ents 1 1

Summary 12

Appendix 1 -Annual reports referred to the committee 13

v

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V I

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Report to the Senate

Introduction

1.1 By virtue of the operations of standing order 25(20) and a Senate order of 29 September 2010,1 the Senate refers to this committee for examination and report the annual reports of departments and agencies of the following three portfolios:

" Broadband, Communications and the Digital Economy;

" Climate Change and Energy Efficiency; and

" Sustainability, Environment, Water, Population and Communities.

1.2 Standing order 25(20) requires that the 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 repmts.

(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) Repott 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 repmis.

(h) Report to the Senate each year whether there are any bodies which do not present atmual reports to the Senate and which should present such reports.

1.3 This report deals with annual reports tabled in the Senate or presented to the President between 1 May and 31 October 2011 as required by standing order 25(20)(f).

Journals ofthe Senate, No.2, 29 September 2010, pp 88-89.

105

2

Annual reporting requirements

1.4 On 8 July 2011 the Joint Committee of Public Accounts and Audit (JCPAA) agreed to revised Requirements for Departmental Annual Reports put forward by the Department of the Prime Minister and Cabinet (the Requirements). 2 Under the Requirements, departmental and prescribed agency annual reports are to be tabled by 31 October.

1.5 Under section 48 of the Commonwealth Authorities and Companies Act 1997 (CAC Act), the Minister for Finance and Deregulation outlines the annual reporting requirements for Com m ,mvcalth authorities and companies in the Commmn ,l'ealth Authorities and Companies (Report of' Op erations) Orders. Section 9 of the CAC Act

applies to Commonwealth authorities and specifies the deadline for the presentation of an annual report to the responsible Minister. Section 36 of the CAC Act outlines the reporting obligations of Conunonwealth companies.

1.6 Some statutory authorities are required to follow the departmental guidelines if their head has the powers of a secretary as defined under the Public Service Act /999.

I. 7 Requirements for the annual reports of non-statutory bodies are set out in the Government Response to recommendations of the then Senate Standing Committee on Finance and Government Operations in its report entitled, Reporting Requirements for the Annual Reports ofNon-Statutmy Bodies. The response was incorporated into the Senate Hansard of 8 December 1987.3

Apparently satisfactory

1.8 Standing order 25(20)(a) requires the conm1ittee to report to the Senate on whether annual reports are apparently satisfactory. In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.

Purpose of annual reports

1.9 As stated in the Requirements, the primary purpose of annual rep01ts of departments is accountability, in particular to the Parliament. 4

They inform the

Parliament, other stakeholders, education and research institutions, the media and the

2 Department of the Prime Minister and Cabinet. Requirem ents for Annual Reports.for D epw1m ents. Executive Agencies and FMA Act Bodies. 8 July 2011, http://www .dpmc.gov .au/guidelines /docs/ann ual_report _requirements _ 20 I 0-ll.pdf (accessed 9 January 2012). The Requirements are prepared pursuant to subsections 63(2) and 70(2) of the Public Se1vice Act /999.

3 Senate Hansard, 8 December 1987, pp :2643-45.

4 Department of the Prime Minister and Cabinet. Requirem ents for Annual Reports.for D epartments, Executive Agencies and FMA Act Bodies, 8 July 201 L p. 3.

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3

general public about departments' perfonnance in providing services. They are a key reference as well as an internal management document and form part of the historical record.

Reports referred to the committee

1. 1 0 The following annual reports have been referred to the conm1ittee:

D epartments and executive and prescribed agencies

Department of Broadband, Communications and the Digital Economy- Annual Report 2010-11

Department of Climate Change and Energy Efficiency- Annual Report 2010-11

Department of Sustainability , Environment, Water, Population and Communities - Annual Report 20 I 0-20 II, including reports on the operations of the:

" Environment Protection and Biodiversity Conservation Act 1999; " Fuel Quality Standards Act 2000; " Hazardous Waste (Regulation of E;.ports and Imports) Act 1989; " O::one Protection and Synthetic Greenhouse Gas Management Act 1989; " Product Stewardship (Oil) Act 2000;

" Water Act 2007; and " Water Efficiency Labelling and Standards Act 2005.

Australian Communications and Media Authority -Annual Report 201 0-11

Bureau ofMeteorology- Annual Report 2010- 11

National Water Commission-Annual Report 20 I 0-11

Office of the Renewable Energy Regulator-Financial Annual Report 2010-2011

Statutmy authorities

Australian Broadcasting Corporation- Annual Report 20 II

Director of National Parks - Annual Rep011 20 I 0- 11

Special Broadcasting Service-Annual Report 20 I 0-2011

Supervising Scientist - Annual Report 20 1 0-20 I I

Wet Tropics Management Authority- Annual Report & State of the Wet Tropics Repm12010-2011

Commonwealth companies/Government business enterprises

Australian Postal Corporation (Australia Post)- Annual Report 20 I 0-20 II

Australian Postal Corporation (Australia Post)-Equal Employment Opportunity Report 20 I 0-11

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4

Low Carbon Australia- Annual Report 2010-2011

NBN Co Limited-Annual Report 2010-2011

NBN Co Limited - Statement of corporate intent 2011 to 2013

Reports on the operation of Acts

Australian Competition and Consumer Commission

Telstra's compliance with the price control arrangements Report for 2009-10

Telecommunications reports for 2009- 10: Telecommunicati0ns competitive safeguards Changes in the prices paid for teleconmmnications services in Australia

Australian Communications and Media Authmity:

National Relay Service Performance Report 2009-10

Department of Broadband, Conmmnications and the Digital Economy:

Investigation into access to electronic media for the hearing and vision " impaired-Correction

Funding of Consumer Representation Grants Program to telecommunications-Report for 2009-10

Digital television transmission and reception- Report, April 20 II

Digital television transmission and reception- Report, July 2011

Digital television transmission and reception - Report, October 20 II

Review of technologies for digital radio in regional Australia- Final Report, October 2011

Department of Climate Change and Energy Efficiency Annual Report 2010

Energy use in the Australian Government's Operations 2008-09

Office of the Renewable Energy Regulator Annual Report 201 0

Increasing Australia's Renewable Electricity Generation

Natural Heritage Ttust Annual Report 2007-08

Natural Heritage Trust Annual Report 2008-09.

1.11 Appendix 1 provides a record, by portfolio, of:

" the basis under which the organisation operates, eg department or statutory authority;

" dates indicating the progressive stages in presentation of the annual repmts, where available; and

" the date each report was tabled in, or deemed to be presented to, the Senate.

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Timeliness

1.12 Under the Requirements, annual reports of departments and executive and prescribed agencies are to be tabled by 31 October. If a department is unable to meet this deadline, an extension of time to report can be sought under the provisions of subsections 34C(4)-(7) of the Acts Interpretation Act 1901.5 These provisions provide for the departmental secretary to advise the responsible minister of the reasons for the delay. The responsible minister is to table this explanation in the Parliament on the next available sitting day.

1. 13 A II 20 I 0- 1 I annual reports examined m this report were timely m their presentation to the Parliament.

1.14 Some reports tabled in the reporting cycle cover different reporting periods. These were the:

" Report of the Office of the Renewable Energy Regulator covers the calendar year ending December 20 10

" Australian Communications and Media Authority's National Relay Service Performance Report 2009-1 0

" Australian Competition and Consumer Commission Telstra's compliance with the price control arrangements Report for 2009-10 Telecommunications reports for 2009-10: Teleconununications competitive safeguards Changes in the prices paid for telecommunications services in Australia

" Natural Heritage Trust Annual Report 2008-09

" Natural Heritage Trust Annual Report 2007-08.

1.15 The committee notes that two additional annual reports of the Natural Heritage Trust covering the years 2009-10 and 20 I 0-11 are included in the Department of Sustainability , Environn1ent, Water, Population and Conmmnities Annual Report 201 0-20 I I.

1.16 The conunittee is concerned that four annual reports for the Trust have been tabled within a six month period.

1.17 The reports of the following agencies missed the tabling deadlines and will be included in the conm1ittee's next report:

Great Barrier Reef Marine Park Authority Murray-Darling Basin Authority Sydney Harbour Federation Trust.

5 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reportsfor D epartments. E\∑ec ulive Agencies and FM A Act Bodies, 8 July 2011, p. 2.

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Remarks made in the Senate

1.18 Under standing order 25(20)( d), the committee notes that the following reports dealt with in this report were the subject of comment in the Senate:

" Natural Heritage Trust Report for 2007-08 6

" Natural Heritage Trust Report for 2008-09 7

" Wet Tropics Management Authority Annual Report 20 I 0-20118

" Australian Postal Corporation (Australia Post) report for 20 I 0-11.9

1.19 However, the conunittee also notes the following annual reports reviewed in this report remain on the Notice Paper under Orders of the Day relating to Govenunent Documents for consideration:

" Australian Postal Corporation - Report for 20 I 0-11 and Equal employment opportunity program -Report for 20 1 0-11

" Wet Tropics Management Authority and State of the Wet Tropics.

Comment on certain annual reports

1.20 The committee provides the following comments on the annual reports of the three portfolio departments referred to it for examination and on several reports from agencies within the portfolios.

Broadband, Communications and the Digital Economy Portfolio

Department ofBroadband, Communications and the Digital Economy (DBCDE)

1.21 The report notes a number of activities undertaken during the reporting period across its three program areas:

"

"

"

1.22

"

Broadband and Communications Infrastructure

Telecommunications, Online and Postal services

Broadcasting and Digital Television .

These activities included:

passage of the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Act 20 I 0 which established the future basis for the structural separation of Telstra's network from its other businesses;

6 Senator Macdonald, Senate Hansard, 11 May 2011, p. 2344.

7 Senator Macdonald, Senate Hansard, 13 October 2011, p. 7435.

8 . Senator McLucas, Senate Hansard, 2 November 2011, p. 8042.

9 Senator Macdonald, Senate Hansard, 1 March 2012, pp 83-84.

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" release ofNBN Co Limited's Corporate Plan;

" establishment of the new Telecommunications Universal Service Management Agency;

" passage of legislation setting out the regulatory framework for NBN Co to operate;

" continued roll out of the digital switchover;

" new 16-channel satellite service for remote or adversely affected consumers;

" implementing the government's National Digital Economy Strategy;

" launch of the Convergence Review which will re-examine the existing regulatory framework in light of improvements in communications and media technologies and which is due to report late in 20 11-12;

" continued assessment of spectrum allocations and preparations for the future auction of digital dividend spectrum;

" introduction of the 2011-13 Corporate Plan; negotiation of a new Enterprise Agreement, implementation of a streamlined risk management framework and roll out of the final stages of a complete electronic filing and information management system.10

1.23 The report anticipates continued progress across all areas of responsibility.

Australian Communications and Media Authority (ACMA)

1.24 The ACMA annual report notes the announcement of its Reconnecting the Customer (RTC) initiative. It included a major public inquiry to explore telecommunications customer services and complaints-handling and eventuated in RTC proposals that Australian teleconununications providers and ISPs will need to deliver on six major consumer protection measures. It notes the final RTC report is

expected to be released in the next reporting year, September 2011.11

1.25 ACMA has participated in the current review of the Telecommunications Consumer Protection (TCP) Code, being undertaken by the Communications Alliance. It is also undertaking a review of the Mobile Premium Services (MPS) Code, expected to be finalised in the second half of 2011.

12

1.26 The report notes that ACMA has a regulatory role in the emergence of the National Broadband Network (NBN), having a regulatory presence across a range of telecommunications consumer safeguards, including the Universal Service Obligation

10 Department of Broadband, Communications and the Digital Economy Annual Report 20 I 0- 1 L pp 2-4.

11 Australian Communications and Media Authority Annual Report 2010-11, p.ll.

12 Australian Communications and Media Authority Annual Report 20 I 0- 11 , p.l2.

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(USO) the Customer Service Guarantee (CSG) and the Network Reliability Framework. Amendments to telecommunications legislation introduced new powers to strengthen protections offered by the USO and CSG , to protect consumers in the transition to the NBN. 13

1.27 The report notes the results of actions taken in regard to anti-spam and the Do Not Call Register with court imposed penalties involving SMS spam and enforcement under the Do Not Call Register Act. 14 The report notes that more than 1.33 million numbers were added to the Register, with a total of 6.36 million numbers registered at

I .

the end of the fmancial year. )

I .28 ACMA contributed to the govenunent's Convergence Review; provided technical and regulatory advice and information on television coverage related to the digital switchover; continued its work in cybersafety awareness through its program of training teachers, parents and young people directly and improved and introduced new applications such as the main social media and social network channels to enhance its communication with its stakeholder cornmunity. 16

Climate Change and Energy Efficiency Portfolio

Department a_[ Climate Change and Energy Efficiency (DCCEE)

1 .29 The report notes that 201 0-11 was the first full year of operation as a portfolio department and that its work revolved round the 'three pillars' of the government's 'climate change policy: mitigation , to reduce Australia's greenhouse gas emissions and improve energy efficiency; adaptation, to respond to the climate change we cannot avoid; and intemational engagement, to help shape a global climate change solution'.

17

1.30 Works undertaken to achieve these goals included:

" renewed focus on domestic carbon pricing policy;

" drafting legislation to implement a carbon price package;

" establishing the Carbon Famung Initiative , to enable access to domestic voluntary and international carbon markets;

" administering mandatory registration and reporting of em1sswns and energy consumption and production under the National Greenhouse and Energy Reporting Act 2007;

13 Australian Communications and Media Authority Annual Report 20 I 0- 11 , pp 11-12.

14 Australian Communications and Media Authority Annual Report 2010- 11 , p.13.

15 Australian Communications and Media Authority Annua l Report 2010-1 L p.21.

16 Australian Communications and Media Authority Annual Report 2010- 11. pp14-15.

17 Department of Climate Change and Energy Efficiency Annual Report 20 I 0- 1 I, p. 3.

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" introduction of the Conm1ercial Building Disclosure program, to assist buyers and lessees to choose more energy-efficient office space and incentives for building owners to improve the energy efficiency of their properties;

" provision of secretariat support for the newly established independent Climate Commission which will provide advice and information on the science of climate change and its impacts on Australia;

" participation in international forums and conferences such as the UN Convention on Climate Change in Cancun, Mexico which resulted in a package of international decisions on climate change action balancing the interests of developed and developing countries; and

" financial support to assist developing countries to respond to climate change. 18

1.31 The department has developed and implemented business, finance and people management policies and procedures which will enable it to fulfil its ongoing work developing domestic policy and promoting international efforts to respond to climate change.

19

Sustainability, Environment, Water, Population and Communities Portfolio

1.32 Department of Sustainability, Environment, Water, Population and Com mzmities

1.33 During the reporting period, the department acquired new responsibilities while the Arts and Culture function was transferred to the Department of the Prime Minister and Cabinet. This resulted in a change of name from the Department of the Environment, Water, Heritage and the Arts to its present title to reflect these changes. These new responsibilities included housing supply and affordability policy matters

from the Department of Families, Housing, Community Services and Indigenous Affairs, and sustainable population matters from the Department of the Treasury. 20

1.34 The report provides a detailed and, where relevant, illustrated record of the department's areas of responsibilities and work undertaken across a wide range of activities.

1.35 Activities noted include:

" preparation and launch of Australia's Biodiversity Conservation Strategy;

" review of the Caring for our Country program;

18 Department of Climate Change and Energy Efficiency Annual Report 2010-11, pp 3-5.

19 Department of Climate Change and Energy Efficiency Annual Report 2010-11, p. 6.

20 Department of Sustainability, Environment, Water, Population and Communities Annual Report 2010-1 L pp 9- 13, p. 21.

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"

"

"

"

"

"

"

"

"

"

"

"

development of marine bioregional plans for each of the identified marine regions in the South-west, North-west, North and East;

urban water use and on-farm water efficiency programs;

participation in the consultation processes in advance of the publication of the Proposed Murray-Darling Basin Plan;

contributed 387 gigalitres of Commonwealth environmental water to rivers , wetlands and flood plains to deliver ecological benefits in the Murray " Darling Basin;

continued participation with the Indigenous commuruty through programs such as the Working On Country Indigenous ranger program and the Indigenous Protected Areas program;

declaration of five new Indigenous Protected Areas, covering 2.36 million hectares ;

celebrations for the 1 001h anniversary of Sir Douglas Mawson's 1911-1914 Australasian Antarctic Expedition to Commonwealth Bay;

implemented Antarctic Treaty measures, proclaiming five new Antarctic Specially Protected Areas, three Antarctic Specially Managed Areas and three Historic Sites and Monuments , and declaring one Specially Protected Species;

finalising World Heritage Listing of Ningaloo Reef in Western Australia and Koongarra within Kakadu National Park and the addition of seven places, including the Great Ocean Road and Scenic Environs, to the National Heritage List;

further progress in the implementation of the National Waste Policy and the passage of the Product Stewardship Bill;

assisting in the delivery of the government's Sustainable Australia -Sustainable Communities strategy which includes measures to support affordable housing and sustainable regional development; and

release of Australia's sustainable population strategy. 21

N ational Water Commission (NWC)

1.36 During the year NWC undertook a review of the National Water Initiative (NWI) , which entailed extensive consultation with parties to the NWI and with key stakeholders. It foreshadows the public release of the report in late 2011. The NWC also finalised its second assessment of reform actions committed to by the Murray " Darling Basin states under Water Management Partnership Agreements.22

21 Department of Sustainability. Environment, Water, Population and Communities Annual Report 2010-2011, pp 9- 12, 20.

22 National Water Commis sion Annual Report 2010- 11 , p. 2.

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1.3 7 The report notes that with the proposed release of the Murray-Darling Basin Plan, the Commission will commence its role as auditor of the effectiveness of the implementation of the plan. ~3

1.38 Finally the report notes that an external reviewer wil1 undertake a review of the ongoing role and functions of the Commission which is expected to be fmalised by the end of 2011.24

General comments

1.39 The Auditor-General has not qualified any of the financial statements contained in the annual reports under review.

1.40 The committee however does note that three reports of the Department of Sustainability, Environment, Water, Population and Communities; Bureau of Meteorology and Office of the Renewable Energy Regulator contain a note that each body:

... has become aware that there is an increased risk of non-compliance with Section 83 of the Constitution where payments are made from special appropriations and special accounts in circumstances where the payments do not accord with conditions included in the relevant legislat ion.

and advise that these circumstances will be investigated. 25

1.41 The conm1ittee again commends those agencies that have included both a general index and a compliance index in their annual reports this year. It considers the inclusion of a compliance index to be a very useful tool for accountability purposes.

1.42 The committee reiterates the concerns expressed during the Supplementary Budget Estin1ates hearings in October 2008, 2009, 2010 and 2011, that the majority of annual reports of departments and agencies were not available to senators prior to those hearings, due to the scheduled dates for supplementary estimates.

1.43 For the October 2011 round of estimates hearings, the committee received annual reports of several agencies from its portfolios. Howe ver, none of the annual reports for the three departments overseen by this committee was tabled prior to, and were therefore unavailable for, the hearings.

1.44 The committee notes that the Requirements state that 'a copy of the annual report is to be presented ... on or before 31 October'. The Requirements continue:

23 National Water Commission Annual Report 20 I 0- 11 , p. 3.

24 National Water Commission Annual Report 20 I 0-11, p. 3.

25 Department of Sustainability Environment, Water, Population and Com munities Annual Report 2010-11, p. 460; Bureau of Meteorology Annual Report 2010-11 , p. 205; and Office of the Renewable Energy Regulator Financial Annual Report 20 I 0-2011. p. 26.

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If Senate Estimates is scheduled to occur prior to 31 October, it is best practice for annual reports to be tabled prior to those hearings. 26

1.45 Given that Supplementary Budget Estimates hearings are scheduled for the week 17-20 October 2012, the conm1ittee expects that annual reports will be available to senators prior to that week.

Summary

1.46 The committee finds that the annual reports referred to it have provided an appropriately comprehensive description of the activities of the reporting bodies and were of a high standard of presentation. They appear to have met the requirements of the various guidelines that apply to them.

1.4 7 Accordingly, the committee reports its finding that the annual reports referred to it for examination and tabled in the period under examination were apparently satisfactory.

Senator Doug Cameron Chair

26 Department of the Prime Minister and Cabinet. Requirementsfor Annual Reports for Departments. Exec wive Agencies and FMA Act Bodies. CanbeJTa, 8 July 2011 , p. 2.

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APPENDIX 1

Annual reports referred to the Senate Standing Committee on Environment and Communications between 1 May and 31 October 2011

Broadband, Communications and the Digital Economy portfolio

Name Tvpen

Australian Broadcasting Corporation Commonwealth Annual Rep011 2011 authority

Australian Competition & Consumer Report on the Commission operation of an

Te1stra's compliance with the price control Act arrangements- I July 2009 to 30 June 20 I 0 Australian Competition & Consumer Report on the Commission telecommunications reports operation of an

Telecommunications competitive safeguards Act for 2009- 10 Changes in the prices paid for telecommunications services in Australia 2009-10 Australian Communications and Media Prescribed Authority- Annual Repot12010-ll agency

Australian Communications and Media Report on the Authority operation of an

National Relay Service Performance Report Act 2009- 10 Australian Postal Corporation Government

(Australia Post) Business

Annual Report 2010-1 I Enterprise

27 Commonwealth Authority includes statutory office-holders. 28 Dates shown are:

Dates2ll Tabled29

A. 05/10/11 12/10/11

B. 29/09/11 c. 29/09111 A.- 1 0/1 l/11

B. 10/01/11 C . 10/01111

A. 27/05/11 11111/11

B. - (rec'd

c. - 30/09/11)

A. 30/09/11 12/10/11

B . 08/09/11 C . 08/09111 A. 18/0 l/11 14/06/ll

B. 28/03/11 c. 28/03/11

A. 29/09111 12/1 0/11

B. 29/09/11 C . 29/09/11

A The date shown on a letter of transmittal printed with the annual rep01t (if any) ('-'represents no letter of transmittal , 'undated' indicates no date on letter of transmittal) B Date submitted to the Minister , as recorded in the Senate's Order ofBusiness (if any) C Date received by the Minister, as recorded in the Senate's Order of Business (if any). 29 The date in parenthesi s shows the date that the report was received out of session by the

President I Deputy President I Temporary Chairman of Committees or was tabled in the House ofRepresentatives (HoR).

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14

Name Tvpe

27

Dates28 Tabled29

Australian Postal Corporation (Australia Post) Government A. - 12/10/11 Equal Employment Opportunity Report 20 I 0- Business B. 29/09/11 11 Enterprise c. 29/09111

Department of Broadband, Communications Department of A. 22/09111 31/10/11 and the Digital Economy State B. 08/09/11 (rec'd

Annual Report 201 0- 1 1 c. 08/09111 14/10/11)

Department of Broadband, Communications Rep01is on the and the Digital Economy operation of an

Report on Digital Television Transmission Act A. - 14/06/11

and Reception, April 2011 B. - (rec'd

c. - 13/05/11)

Report on Digital Television Transmission A. - 05/07111

and Reception, July 2011 B. 14/06/11

c. 14/06/11

Report on Digital Television Transmission A.- I 111 0/11

and Reception, October 2011 B. 19/09111

c. 19/09111

Funding of Consumer Representation Grants A.- 10/05/11

Program to telecommunications, B.- (rec'd

Annual Report 2009-20 I 0, March 2011 C.- 20/04111)

Media access review final report, dated A.- 10/05/11

December 201 0 - Correction B. - (rec'd

C.- 20/04111)

Review of technologies for digital radio in A.- 12/10/11

regional Australia, Final report, 7 October B. 04110111

2011 c. 04110111

NBN Co Limited Commonwealth A.- 01111111

Annual Report 20 I 0-20 I 1 company/ B. 21/09/11 (HoR,

Govemment C. 21 /09111 13/10111)

Business Enterprise

NBN Co Limited Commonwealth A.- 11/10/11

Statement of Corporate Intent 2011-2013 company/ B. 26/08111 Government C. 26/08111 Business Enterprise

Special Broadcasting Service Commonwealth A. October 10 12/10/11

Annual Report 20 I 0-2011 authority B. 26/09111

c. 26/09/11

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Climate Change and Energy Efficiency Portfolio

Name Tvpe Dates Tabled

Department of Climate Change and Energy Department of A. 14/10/11 31110111 Efficiency Annual Report 201 0- 1 I State B. 18/10/11 (rec'd

c. 19/10/11 28110111)

Department of Climate Change and Energy Requirement of A.- 05/07/11

Efficie ncy Go vernment B. 20/06111

Energy use in the Australian Government's policy c. 21106111 Op erations 2008-09 Low Carbon Australia Commonwealth A. 11 I I 0/11 31110/11

Annual Repori 2010-2011 company B. 24/10/11 (rec'd

c. 25110111 28/10/11)

Office of the Renewable Energy Regulator Prescribed A. June 11 05/07/li

Annual Report 20 I 0 agency B. 31 /05/11

c. 31 /05111

Office of the Renewable Energy Regulator Prescribed A. Sept 1I 12/10/11 Financial Annual Report 20 I 0-20 I I agency B. I6/09/1I

c. 16/09/11

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Sustainability, Environment, Water, Population and Communities Portfolio

Name Type Dates

Department of the Sustainability, Environment, Department of A. 19/10/11 Water, Population and Communities State B. 30/09111

Annual Report 20 1 0-2011 c. 30/09111

Bureau of Meteorology Prescribed A. 14/09/11

Annual Report 20 I 0- 1 I agency B. 23/09111

c. 23/09/11

Director of National Parks Commonwealth A. -

Annual Report 20 I 0-11 authority B. 05110111

c. 05/10111

National Water Commission Prescribed A. 29/08/11

Annual Report 20 I O- Il agency B. 29/09111

C. 12110111

Natural Heritage Trust Report on the A. undated

Annual Report 2007-08 operation of the B. 07/12/10

Trust c. 07112/10

Natural Heritage Trust Report on the A. undated

Annual Report 2008-09 operation of the B. 06/07/11

Trust c. 19/08/11

Supervising Scientist Report on the A . 21/10/11

Annual Report 2010-2011 operation of an B. 20/09/11

Act c. 20/09/11

Wet Tropics Management Authority Report on the A. 24/09/11

Annual Report and State of the Wet Tropics operation of an B. 11110/11 Report 20 I 0-20 I I Act c. 11/10/11

120

Tabled 01111/11 (HoR, 31/10111)

31/10/11 (rec'd 27/1011]) 31/10/11

(rec'd 26/10/11) 01/11111 (HoR,

13/10111) 1 0/05/11

12/10/11

31 II 0111 (rec'd 26/10/11) 31 II 0111

(rec'd 18/10/11)

The Senate

Finance and Public Administration

Legislation Committee

Annual reports (No. 1 of 2012)

March 2012

121

© Commonwealth of Australia 20 12

ISBN 978-1-74229-571-8

The Senate PO Box 6100 Parliament House Canberra ACT 2600 Ph: 02 6277 3530

Fax: 02 6277 5809 E-mail: fpa.sen@ .aph.£?:o v.au Internet: www.aph.gov.au/senate fpa

Printed by the Senate Printing Unit, Parliament House, Canberra.

II

122

Membership of the Committee

Members

Senator Helen Polley (Chair)

Senator Scott Ryan (Deputy Chair)

Senator the Hon John Faulkner

Senator the Hon Ursula Stephens

Senator Arthur Sinodinos

Senator Richard DiNatale

Participating members

ALP, TAS

LP, VIC

ALP, NSW

ALP,NSW

LP, NSW

AG, VIC

Senators Abetz, Adams, Back, Bernardi, Bilyk, Birmingham, Bishop, Boswell, Boyce, Brandis, Bob Brown, Carol Brown, Bushby, Cameron, Cash, Colbeck, Corn1ann, Crossin, Edwards, Eggleston, Fawcett, Fierravanti-Wells, Fifield , Fisher, Furner, Gallacher, Hanson-Young, Heffernan, Humphries, Johnston, Joyce, Kroger, Ludlam, Macdonald, Madigan, Marshall, Mason, McEwen, McKenzie, Milne, Moore, Nash, Parry, Payne, Pratt, Rhiannon, Ronaldson,

Scullion, Sherry, Siewert, Singh, Stephens, Sterle, Thistlethwaite, Urquhart, Waters, Williams, Wright and Xenophon

Secretariat

Ms Christine McDonald

Ms Katie Bird

Ms Penelope Bear

Ill

123

Conunittee Secretary

Research Officer

Administrative Officer

124

Table of contents

Membership of the Committee ........................................................................ iii

Chapter 1

Introduction .... ....... ....... ....................... ........ ..................................................... ...... 1

Tem1s ofreference ....................................................................... ........................... 1

Allocated portfolios ..... ................... .................... ................ ..................... ............... 2

Method of assessment. ........... .... ............ ........ ........................... .... .......................... 3

Reports examined ....................... ............................................................................ 4

Departments of State ........................................................................................... 4

Departments of Parliament .......................................... ........................................ 4

Statutory agencies/authorities ................................. ............................................. 5

Commonwealth authorities /companies ............................................................... 6

Non-statutory Authority ........ ................ ................ .... ....... ................... ....... ......... 6

Reports not examined .......... .... ........ .... ... .......... .... .......... ............................. ... .... . 7

Reports held over ...... ....... ........................................................ .................... ........ 7

Non-reporting bodies ..................... ......................................................................... 8

Timeliness ............................................................................................................... 8

Assessment of reports ............................................................................................. 9

Senate debate ...................... ...... ............................ ........ ..................... ................... 10

Correction .............. ............................................................................................... 1 0

Government responses to conm1ittee reports on annual reports .......................... 10 Annual Reports (No. 1 of 2008) .............. .......................................................... 10

Annual Reports (No. 2 of 2009 ...... ...... ............. .............. ..... ............................. 11

Chapter 2

Selected agencies and reports ............................................................................... 13

Department of Finance and Deregulation ......................................................... 13

Department of the Prime Minister and Cabinet. .......................... ...................... 15

Department of Regional Australia, Regional Development and Local Government ................................................................................... .................... 17

Australian National Audit Office .............................................. .... .................... 19

General con1ments ................................................................................................ 20

Financial Management and Accountability Act 1997 requirements ................. 20

Use of compliance index by CAC Act bodies ............................................... .... 22

Appendix 1

Dates relating to the timeliness of presentation and debate in the Senate ........ .... 23

v

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126

Chapter 1

Introduction

1.1 This is the Senate Finance and Public Administration Legislation Committee's (the committee's) first report on annual reports for 20 12. It provides an overview of the committee's examination of annual reports for the 2010-11 financial year presented to the Parliament between 1 May and 31 October 2011. Copies of this and other committee reports can be obtained from the Senate Table Office, the committee secretariat or online at: v. ww .aph.gov.au/senate fpa.

Terms of reference

1.2 Under Senate Standing Order 25(20) the annual reports of certain departments and agencies stand referred to committees for examination and assessment. Each committee is required to:

(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 m 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 detem1ines, 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 repm1s 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 perfom1ance 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. 1

The Senate, Standing Orders and other orders of the Senate, November 2009, SO 25(20).

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2

Allocated portfolios

1.3 The Senate last amended the continuing order relating to the allocation of departments and agencies to committees on 8 February 2012 resulting in the transfer of the newly established Regional Australia, Local Govemment, Arts and Sport portfolio to the Senate Rural and Regional Affairs and Transport Committee for oversight. 2 In accordance with that resolution, the committee has responsibility for the oversight of the following:

" Parliament; 3

" Prime Minister and Cabinet portfolio~ and

" Finance and Deregulation portfolio.

1.4 As the Department of Regional Australia , Regional Development and Local Govenm1ent and the various arts and sports agencies were within the committee's oversight during the 201 0-11 financial period, the committee was referred these annual reports for examination and report. The changes to the committee oversight resulting from the February 2012 amendment will be reflected in the committee's second report on annual reports for 20 12.

1.5 The following changes were made to the Administrative Arrangements Orders:

" 19 October 2011: transfer of administration of the Australian b~formation Commissioner Act 2010, Freedom of ],~formation Act 1982 and Privacy Act 1988 from the Department of the Prime Minister and Cabinet to the Attomey " General's Department. 4 This resulted in the transfer of the Office of the Australian Information Commissioner from the Prime Minister and Cabinet portfolio to the Attorney-General's portfolio.

" 7 December 20 11 : removal of the F amity Law Act 19 7 5, Part XIV A from the oversight of the Prime Minister and Cabinet Portfolio. 5

" 14 December 2011: responsibility for the Arts and Sport was transferred to the new Regional Australia, Local Governn1ent, Arts and Sport portfolio.

2 Journals ofthe Senate, 8 February 2012, p. 3.

3 As a matter of comity between the Houses, neither House inquires into the operations of the other House. For this reason. neither the annual report of, nor the proposed expenditure for, the Department ofthe House of Representatives is referred to a Senate Committee for review.

4 The Administrativ e Arrangements Order of 19 October 2011 can be accessed at the following link: http://www .dpmc.£!0\ '.au/parl iamentarv/docs/aao 20 lll 019 .pdf (accessed 20 December 2011).

5 The Administrativ e Arrangements Order of7 December 2011 can be accessed at the following I ink: http: //v,'Ww.dpmc .uov .au/pari iamentarv/docs/aao 20111207 .pdf (accessed 20 December 2011)

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3

1.6 The above changes ansmg from the various Administrative Arrangements Orders will be reflected in the committee's examination of 2011-12 annual reports.

1.7 As noted in the committee's second report of 2011 (August 2011), the Australian Reward Investment Alliance (ARIA) and the Military Trustee Boards were amalgamated to fom1 the Commonwealth Superannuation Corporation from 1 July 2011. In addition, ComSuper was established as a statutory agency, replacing the role of the Commissioner for Superannuation with the Chief Executive Officer. The final reports for ARIA and the Commissioner for Superannuation were received and examined by the committee.

Method of assessment

1.8 Annual reports provide one of the key mechanisms, together with the Senate Estimates process, for scnttiny of the operations of Government. The Requirements for Annual Reports: for Departments, Executive Agencies and FMA Act Bodies state that 'the primary purpose of annual reports of departments is accountability, in

particular to the Parliament'. 6

1.9 Senate Standing Order 25(20) requires that the committee examine reports referred to it to determine whether they are timely and 'apparently satisfactory'. The conm1ittee forms an opinion by considering whether the reports comply with the relevant legislation and guidelines for the preparation of annual reports. The principal legislation which apply to departments, statutory agencies and authorities , and Commonwealth companies are:

" Public Service Act 1999;

" Parliamentmy Service Act 1999;

" Financial Management and Accountability Act 1997 (FMA Act); and

" Commonwealth Authorities and Companies Act 1997 (CAC Act).

1.10 Statutory authorities report under their respective enabling legislation. For example, the Australian Sports Anti-Doping Authority reports under section 74(1) of the Australian Sports Anti-Doping Authority Act 2006.

1.11 The committee also assesses whether reports comply with the Requirem ents for Annual Reports: for Departments, Executive Agencies and FMA Act Bodies (the PM&C requirements) , issued by the Department of the Prime Minister and Cabinet (PM&C) with the approval of the Joint Committee of Public Accounts and Audit

under subsections 63(2) and 70(2) of the Public Se111ice Act 1999. This is the

6 Department of the Prime Minister and Cabinet, Requirem entsfor Annual Reports: for departments. executive agencies and FMA Act bodies, July 2011 , p. 3.

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4

authoritative source outlining the requirements for preparing and presenting annual reports for bodies prescribed under the FMA Act. 7

1.12 Conunonwealth authorities and companies reporting under the Commonwealth Authorities and Companies Act 1997 (CAC Act) are required to comply with the Commonwealth Authorities and Companies (Report of Operations) Orders 2008 which set out the requirements for the preparation of annual reports. 8

1.13 The Finance Minister has a role in the oversight of Commonwealth authorities that are also classified as a Government Business Enterprise (GBE) as set out in the C AC Act. The annual reports of G BEs must provide an assessment of the entity's financial condition, dividends and community servi~.:e obligations over the fmancial year.

Reports examined

1.14 During the period between 1 May 2011 and 31 October 2011, 42 annual reports tabled in the Senate, or presented 'out of session' to the President of the Senate were referred to the committee for examination.

1.15 The reports examined are categorised as follows:

Departments of State

" Department of Finance and Deregulation-Report for 201 O-Il-pursuant to section 63 of the Public Services Act 1999;

" Department of the Prime Minister and Cabinet-Report for 201 O-Il " pursuant to subsection 63 of the Public Service Act 1999; and

" Department of Regional Australia, Regional Development and Local Government-Report for period 12 September 2010 to 30 June 20 It " pursuant to section 63 of the Public Services Act 1999.

Departments of Parliament

" Department of Parliamentary Services-Report for 201 O-Il-pursuant to paragraph 65(1 )(c) of the Parliamentwy Service Act 1999 including the Annual Report of the Parliamentary Library pursuant to subsection 65(3) of the ParliamentQ/y Services Act 1999; and

" Department of the Senate-Report for 20 1 O-Il-pursuant to section 65 of the Parliamentwy Service Act 1999.

7 These guidelines may be found at: www .pmc. go\' .au/guide! ines/docs/annua l report reguirements.pdf.

8 These orders are available at the following link: http://,vww .com law. go,∑ .au/Detai ls/F200RL02092

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Statutmy agencies/authorities

" Australian Electoral Commission-Report for 201 0-11-pursuant to section 17 of the Commonwealth Electoral Act 191 8;

" Australian Institute of Family Studies-Report for 20 I O-Il-pursuant to section 114L of the Family Law Act 1975;

" Australian National Audit Office-Report for 2010-11-pursuant to section 28 of the Auditor-General Act 1997;

" Australian Parliamentary Service Commissioner-Report for 201 O-Il " pursuant to section 42( 1) of the Parliamentary Service Act 1999;

" Australian Public Service Commission-Report of the Australian Public Service Commissioner for 2010-11, including report of the Merit Protection Commissioner-pursuant to section 44 of the Public Service Act 1999;

" Australian Reward Investment Alliance (ARIA)- Report for 201 0-11 [final report], including financial statements for Commonwealth Superannuation Scheme, Public Sector Superannuation Scheme and Public Sector Superannuation Accumulation Plan-pursuant to section 162 of the Superannuation Act 1976, section 28 of the Superannuation Act 1990 and

section 26 of the Superannuation Act 2005; 9

" Australian Sports Anti-Doping Authority-Report for 201 O-Il-pursuant to section 74(1) of the Australian Sports Anti-Doping Authority Act 2006;

" Commissioner for Superannuation (ComSuper)-Report 2010-11-pursuant to section 162 of the Superannuation Act 1976 and section 21 of the Papua New Guinea (Staffing Assistance) Act 1973;

" Future Fund Board of Guardians and Future Fund Management Agency " Report for 2010-11-pursuant to section 81 ofthe Future Fund Act 2006;

" Inspector General of Intelligence and Security-Report for 20 I O-Il " pursuant to subsection 35 of the Inspector-General of Intelligence and Security Act 1986;

" National Archives Of Australia and National Archives of Australia Advisory Co unci 1-Report for 20 l O-Il-pursuant to subsection 70( 1) of the Public Service Act 1999 and subsections 68(1) and 68(2) of the Archives Act 1983;

" Office of the Australian Information Commissioner-Report for 201 O-Il " pursuant to section 30 of the Australian b?fonnation Conunissioner Act 20 I 0;

" Office of the Official Secretary to the Governor-General-Report for 20 I 0-11-pursuant to section 19(1) ofthe Governor-General Act 1974; and

" Old Parliament House (Museum of Australian Democracy)- Repmi for 201 O-Il-pursuant to section 70 of the Public Service Act 1999.

9 As noted in repm1 2 for 2010, ARIA was merged into the Commonwealth Superannuation Corporation. This is ARIA's final report.

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6

Commonwealth authorities/companies

" Albury-Wodonga Development Corporation-Report for 20 I O-Il-pursuant to subsection 34C(3) oftheAcrs Inte1pretation Act 1901;

" ASC Pty Ltd-Report for 20 I 0-11- pursuant to section 9 of the Common•1 ealth Authorities and Companies Act 1997;

" Australian Council for the Arts-Report for 2010-11-pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;

" Australian Film, Television and Radio School-Report for 20 I O-Il " pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;

" Australian National Maritime Museum-Report for 201 O-Il-pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;

" Australian Sports Commission-Report for 201 O-Il-pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997 including the Australian Sports Foundation Ltd;

" Bundanon Trust-Report for 20 I O-Il-pursuant to section 36 of the Commonwealth Authorities and Companies Act 1997;

" Medibank Private-Report for 2010-11-pursuant to sections 9 and 36 ofthe Common wealth Authorities and Compani es Act 1997;

" National Australia Day Council Limited-Report for 2010-11-pursuant to subsection 36(4) of the Commonwealth Authorities and Compani es Act 1997;

" National Film and Sound Archive-Report for 201 O-Il-pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;

" National Gallery of Australia-Report for 2010-11-pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;

" National Library of Australia-Report for 2010-11-pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;

" National Museum of Australia-Report for 2010- 11- pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997;

" NBN Co Limited-Report for 2010-11-pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997; and

" Screen Australia-Report for 201 O-Il- pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997.

Non-statutmy Authority

" Australian Political Exchange Council-Reports for 2007-08 2008-09 and 2009-1 0-pursuant to its terms of reference; and

" Public Lending Right Committee-Report for 2010-11-pursuant to section 19 of the Public Lending Right Act 1985.

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Reports not examined

1.16 The committee is not obliged to report on Acts, statements of corporate intent , surveys, corporate plans or errata. The committee did not examine the following reports:

" ASC Pty Ltd-Statement of corporate intent 2011 to 20 14;

" Australian National Audit Office-Report for 201 0-1 1 corrections [2];

" Department of Finance and Deregulation-Campaign advertising by Australian government departments and agencies-Report for 20 l 0-11;

" Final budget outcome 20 I O-Il-Report by the Treasurer and the Minister for Finance and Deregulation;

" NBN Co Limited-Statement of corporate intent 2011 to 2013; and

" Privacy Act 1988-Report for 2009-1 0 on the operation of the Act, including financial statements for the Office of the Privacy Commissioner-Correction.

Reports held over

1.17 The following reports were tabled in Parliament after 31 October 201 1. These reports will be examined in the committee's second report on annual reports due to be presented to the Senate in September 2012:

" Australian Electoral Commission-Election 20 I 0- Funding and disclosure rep011 (presented 14 November 2011);

" Australian Public Service Commission-State of the Service Report for 2010-11 (tabled in House of Representatives on 24 November 2011 );

" Commonwealth Ombudsman - Report for 20 l 0-11 (tabled 7 February 20 12);

" Department of Finance and Deregulation-Certificate of compliance-Report for2010-Il (presented 25 January 2012);

" Department of Finance and Deregulation-Consolidated financial statements for the year ended 30 June 2011 (presented 13 December 2011 );

" Department of Finance and Deregulation-Issues from the advances under the annual Appropriation Acts-Report for 20 I 0-11 (tabled in the House of Representatives on 24 November 2011);

" Members of Parliament (Staff) Act 1984--Report for 2010-11 (tabled 22 November 2011); and

" Mid-year economic and fiscal outlook-20 I 1-12-Statement by the Treasurer and the Minister for Finance and Deregulation (presented 30 November 2011).

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Non -reporting bodies

1.18 Standing Order 25(20)(h) requires that the committee inquire into, and report on, any bodies which do not present annual reports to the Senate but should present such reports.

1.19 The committee continues to approach this in two ways. First, the committee examines the Administrative Arrangements Order for the list of legislation administered by portfolio ministers and consequently, departments and agencies. Second, the committee consults the Department of Finance and Deregulation's listing of Australian Government Bodies. The list identifies the agencies that are required to report and the Acts under which they report. 10

1.20 Based on the above checks, the committee considers it has received all reports that it is required to receive.

Timeliness

1.21 Most agencies and departments are required to table an annual report in Parliament by 31 October each year unless another date is specified, for example, in an agency's legislation , charter and/or terms of reference . Commonwealth companies reporting under the CAC Act are required to provide an annual report to the responsible minister four months after the end of the company's financial year. 11 Ministers are required to table annual reports of companies as soon as practicable.

1.22 The committee notes that a number of annual reports were held in the Minister's office for a period greater than four weeks:

" Australian Institute of Family Studies-received by minister on 2 September 2011 and tabled on 13 October 2011;

" National Library of Australia- received by minister 23 September 2011 and tabled on 26 October 2011;

" Old Parliament House- received by minister 23 September 2011 and tabled on 28 October 2011; and

" Australian Reward Investment Alliance-received by minister 30 September and tabled 31 October 2011.

1.23 While these reports were presented to the relevant minister within the required timeframe, the committee believes greater effort should be made to ensure that annual reports received by ministers are provided to the Parliament promptly.

1.24 For each report referred to it, the committee recorded the following dates:

10 This list may be found at: http://www.finance.gov.au /publicationsltl ipchart /index.html (accessed 4 November 2010).

11 Common wealth Authorities and Companies Act 1999. s. 36.

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" submitted to minister;

" received by the minister;

" tabled in the Senate or presented to the President or a temporary chair of Committees; and

" tabling date in the House of Representatives, where applicable .

1.25 Commonwealth authorities are required to report by the 15th day of the fourth month after the end of the financial year, which for authorities reporting on a standard financial year basis would be 15 October. 12

1.26 The committee received the Australian Political Exchange Council annual reports for the 2007-08, 2008-09, 2009-10 financial periods on 14 June 2011. While the Australian Political Exchange Council operates under its own terms of reference and is not required to report by a specific date, the committee believes greater effort

should be taken to meet the Council's terms of reference to 'anange for regular reporting on the Council's activities to Parliament, the Principals and sponsors'. 13

Assessment of reports

1.27 The conmuttee determines whether the report of an agency satisfactorily meets reporting requirements by assessing against the PM&C requirements, in particular, the checklist at Attaclunent F; its respective enabling legislation; and where necessary, the Corporations Act 2001.

14

1.28 The PM&C requirements are reviewed annually to capture changes arising from reporting requirements in legislation and new policy or recommendations contained in various reports. There were three significant changes to reporting requirements for annual reports for the 201 0-11 financial year which covered the following:

"

"

"

1.29

12

13

14

15

Commonwealth Disability Strategy;

Social inclusion reporting; and

Freedom of Information. 15

These changes are discussed in further detail in chapter two.

Commonwealth Authorities and Compani es Act 1999. s. 9.

The Australian Political Exchange Council's Terms of Reference can be accessed though their website: http://www.polexchange.org.au /the council/aims of the council.html (accessed 24 January 20 12).

Corporations Act 2001, chapter 2M.

Department of the Prime Minister and Cabinet, Requirements for Annual Reports: for departme11ts, executive agencies and FMA Act bodies, July 20 I I, p. i.

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Senate debate

1.30 Few annual reports are debated in the Senate, but many remain on the Senate Notice Paper for future consideration. The committee is not aware of any Senate debates relating to the reports examined.

Correction

1.31 The committee would like to acknowledge an error in its previous report on annual reports, Annual reports (No.2 of 2011). In paragraph 1.21, the conm1ittee stated that the Australian Electoral Commission Report for 2009-10 was provided to by the Minister to the Parliament on 9 February 2010, failing to meet the required deadline of 15 sitting days after receipt by the Minister. While the report was tabled in the Senate on 9 February 2011, it was tabled in the House of Representatives on 25 November 2010, meeting the 15 sitting days requirement.

Government responses to committee reports on annual reports

Annual Reports (No. 1 of 2008)

1.32 The Governn1ent provided a response to the committee's report Annual Reports (No. 1 o.f2008) on 1 March 2012.

1.33 The committee's first recommendation relating to recommendations 10-12 in the committee's 2005 report Government advertising and accountability, 16 were agreed in principle. The response noted that following the introduction of new advertising guidelines in July 2008 and updates in March 2010, the Department of Finance and Deregulation publishes biannual reports on government campaign advertising which include agency specific information.

1.34 The committee made a number of recommendations in regard to the Australian River Co. Limited (ARCo) relating to deliberations to sell the company. The response noted that in 2004-05 two 'roll on/roll off vessels were sold to Patrick Shipping Pty Ltd. The response states that the wind down of remaining operations must deal with aspects of residual assets and liabilities. Furthermore 'in both cases characteristics which would have influenced the original exclusion from a commercial sale remain relevant'. 17

1.35 The response supports the committee's recommendation to provide details on ARCo's principle activities, and notes that 'ARCo has taken the committee's

16 Report available at: http://www.aph.gov.au/Parl iamenta1y Business/Committees/Senate Committees?url= fapa ctte /completed ingu iries /2004-07 /govtadvertisin g/report/index .htm

17 Government response to Report on Annual Reports (No. 1 of1008), p. 4, http://www .aph.!.!OV .au/Pari iamentarv Business/Com mi !tees /Senate Cornm ittee s?url=fapa ctte /annual/2008-1 O.htm (accessed 6 March 2012)

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recommendation into consideration in preparing subsequent annual reports, including reporting on the progress made regarding divestment of assets and future management of residual liabilities,. 18

1.36 In addition the response provides an explanation of the perceived conflict of interest in the employment of a fom1er ANL Container Lines Pty Ltd as ARCo Company Secretary and the basis upon which the decision was made to purchase services from a company in which an ARCo Director was a shareholder and director.

1.3 7 In response to the committee,s reconm1endation that agencies, where appropriate, adopt the practice of reporting on environmental impacts within their annual reports, the response indicated that amendments to the Environment Protection and Biodiversity Conservation Act 1999 will be introduced into Parliament this year. These amendments will seek to allow the minister to specify the requirements for this reporting in regulations under the amended Act to provide greater guidance and quality of reporting on actions to improved sustainability.

Annual Reports (No. 2 of 2009)

1.38 The Governn1ent tabled a response to the committee,s report Annual Reports (No.2 of2002) on 24 January 2012.

1.39 The committee recommended that commonwealth authorities or companies that pay for the services of a related entity company should include an explanation of the decision-making process to engage that company in their annual report.

1.40 The Government agreed to the committee's recommendation and notes that the commonwealth authorities and wholly-owned commonwealth companies are required by the Commonwealth Authorities (Annual Reporting) Orders 2011 and the Commonwealth Companies (Annual Reporting) Orders 2011 to include the 'decision making processes undertaken for approval of individual or aggregate transactions of at least $10,000 (GST inclusive), where a director of the Commonwealth entity is also a director of the other entity that provides the good or service or receives the grant. 119 This requirement will apply to annual reports from the 2012-13 financial year.

18 Government response to Report on Annual Reporzs (No. I of 2008), p. 4, http://www .aph.gov .au/Pari iamentarv Business/Committees/Senate Commi ttees ?url=fapa ctte /annuai/2008-IO.htm (accessed 6 March 2012).

19 Government response to report on Annual Reports (No. 2 of 2009), p. 2, http://www .aph.gov.au/Parliamentarv Business/Committees/Senate Committees'\1rl =fapa ctte /annual/2008-1 O.htm (accessed 6 March 2012).

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Chapter 2

Selected agencies and reports

2.1 The committee has selected the following departments and agenctes for assessment:

" Department of Finance and Deregulation;

" Department of the Prime Minister and Cabinet;

" Department of Regional Australia, Regional Development and Local Government; and

" Australian National Audit Office.

Department of Finance and Deregulation

2.2 The Department of Finance and Deregulation's (Finance's) annual report provides a detailed and well set out review of the Finance's operations during the 201 0-ll financial period. The report high! ights Finance's role in the development of the 201 1- 12 federal budget, the extended caretaker period following the 2010 federal

election and in the government's response to severe flooding in eastern Australia and Cyclone Yasi.1

2.3 In addition, the report provides detailed information on Finance's work toward regulatory reform of government through Better Regulation Ministerial Partnerships; changes to the Australian Government's best practice regulation requirements 2 and its work toward a whole-of-government ICT system to improve public sector productivity.

Portfolio structure

2.4 There were two changes to the Finance portfolio during the 2010-11 reporting period. Under the Administrative Anangements Order of 14 September 20 I 0, responsibility for the ownership and management of the Prime Minister's official residences was transferred to Finance from the Department of the Prime Minister and

Cabinet.

2.5 On 1 July 2011, the Governance of Australian Government Superannuation Scheme Act 2011 came into effect consolidating the Australian Reward Investment Alliance, the Military Superannuation and Benefits Board and the Defence Force Retirement and Death Benefits Authority into the Commonwealth Superannuation Corporation.

Department of Finance and Deregulation . Annual Report 2010-11, p. 24.

2 Department of Finance and Deregulation, Annual Report 2010-11, pp 2-7.

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2.6 There were a number changes to the organisational structure of Finance in the 20 I 0-11 financial year. A Chief Operating Officer Group (COO Group) was created on 1 July 20 I 0 following the organisation restructure in the 2009-1 0 financial year. The COO Group is responsible for the management of all of Finance's corporate activities . The creation of an Implementation and Performance Improvement Division within the Financial Management Group was announced on 25 May 2011 and took effect on 4 July 2011.

2. 7 Fo11owing the 20 I 0 Federal Election the following Ministerial appointments were made within the Finance portfolio:

" Senator the H on Penny Wo ng w as appointed Minister for Finance and Deregulation;

" The Han Gary Gray AO MP was appointed Special Minister of State; and

" Senator the Hon Nick Sherry was appointed Minister Assisting the Finance Minister on Deregulation ( 14 September 201 0) and Minister Assisting the Finance Minister on Public Sector Superannuation (26 January 2011 ).

Transparency and Scrutin y

2.8 Finance discussed its continuing work towards better regulation of government, in particular , the Better Regulation Ministerial Partnerships program. In 20 I 0-1 I, Finance completed three partnerships with the Assistant Treasurer and the Minister for Home Affairs, the Minster for Defence and the Attorney-General and the Minister for Agriculture, Fisheries and Forestry. 3

2.9 Finance continued to take a lead role in the response to the Government's Ahead of the Game: Blueprint for the reform of the Australian Government administration and is responsible for implementing three key recommendations4 including the introduction of Model Chief Executive's Instructions (CEis) and a CEI

Working Group consisting of representatives from all portfolios.

2.10 Similar to the previous financial year, the Finance's review of performance for the 2010-ll period was broken into individual chapters . The structure of information in each outcome includes an overview of highlights within the outcome, followed by tables containing information on deliverables and Key Performance Indicators (KPI's). The flow of infom1ation gives the reader a broad narrative understanding of the work undertaken in each outcome while still providing specific perfom1ance infom1ation that is easily comparable to the Portfolio Budget Statements (PBS).

2.11 Finance continued to provide explanatory conm1ents in relation to KPI's outlining how each KPI was achieved and where necessary , what further work is being done by the department where it is indicated KPI's have not been achieved. The

3 Department of Finance and Deregulation , Annual Report 2() I 0- 11, p. 29.

4 Department of Finance and Deregulation, Annual Report 20/0-1 I, pp 15 & 25.

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committee found the inclusion of qualitative and quantitative comments useful in identifying the reasons behind failure to fully achieve KPI's.

2.12 In response to the committee's first report on annual reports for 2011, Finance has included specific page numbers within its compliance index. 5 The committee believes the inclusion of specific page numbers to be important as it allows for easy identification of mandatory information throughout the report.

2.13 In relation to external scrutiny , the committee notes the work by Finance, alongside the Australian National Audit Office (ANAO) , to draw attention to agencies at risk of breaches to section 83 of the Constitution. This work has specifically focused on conditions required by law before making payments from special appropriation s and special accounts. The committee notes that Finance is continuing to work with the ANAO and various agencies to develop a solution to this matter. 6

2.14 In addition to its work with ANAO, there were six ANAO reports relating to Finance. The department's annual report outlines the details and findings of each report and explains Finance's responses. The department also provided an overview of substantial legal actions involving Finance providing detailed updates on each legal action since the previous annual report.

2. 15 The committee considers that Finance's Annual Report for the 201 0-1 I financial year complies with all reporting requirements and provides a clear overview of the department's structure and operations.

Departmeltt of the Prime Minister and Cabinet

2.16 The Department of the Prime Minister and Cabinet (PM&C) annual report for 2010-11 provides a clear overview of PM&C's performance during the financial year. The report highlights the department's work during the extended caretaker period following the 2010 federal election and its involvement in producing a carbon pricing package.7

2.17 In 2010-11 the department was deeply involved in the Government's response to the various national disasters that occurred during 2011, including widespread flooding and Cyclone Yasi. In addition PM&C, through the Office for Sport, worked with various sporting codes towards the implementation of anti-match fixing policies. 8 The department was also involved in the development of the National

5 See paragraph 2.15, Senate Finance and Public Administration Legislation Committee, Annual reports (No. 1 of2011). p. 13 .

6 Depar1ment of Finance and Deregulation, Annual Reporl 2010-11, pp I 00-102.

7 Department ofthe Prime Minister and Cabinet, Annual Repor1 2010-11, pp 2-9.

8 Department of the Prime Minister and Cabinet, Annual Report 2010-11. p. 120.

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16

Health Reform Agreement and played an important role during the caretaker period providing advice to both the Prime Minister and the Leader of the Opposition. 9

Por({olio structure

2.18 As was noted in the committee's first report of 2011 (March 2011), responsibility for the Offices of Arts and Sport were transferred to the Prime Minister and Cabinet Portfolio following the changes to the Administrative Arrangements Orders on 14 September 2010. The Department of Regional Australia, Regional Development and Local Government was also established within the PM&C portfolio at this time. The 2010-1 I annual report for the Department of Regional Australia , Regional Development and Local Govenm1ent is examined below.

2.19 An effective graphic illustrating the various changes to the PM&C portfolio is provided in the report which outlines transfers of specific responsibilities either to, or from, the PM&C portfolio. 10 The use of a graphic was helpful in providing a clear, concise explanation of the changes and assisted the conunittee in its examination of the report.

Transparency and scrutiny

2.20 PM&C provides a thorough overview of the various outcomes and programs which assists the reader to gain a clear understanding of the vast policy coverage of the department. The report provides a broad outlines of each sub program within the department's four programs-Prime Minister and Cabinet, Official and ceremonial support, Arts and cultural development and Sport and recreation.

2.21 As in previous years' annual reports , each sub program represents an individual chapter of the report. Each chapter provides a narrative overview of the highlights and performance of the department and includes coloured tables containing specific information relating to performance against KPis. This is useful as it provides readers with relevant background information on each area of PM&C while also enabling easy identification of the relevant KPis for each sub program.

2.22 As was noted by the committee in previous reports on annual reports, 11 the department continued to include the qualitative indicator 'high level of satisfaction'. 12 The committee notes that, in contrast to previous years, PM&C has included some quantitative percentage targets within its KPis, for example, the report states that 112 projects were administered through the Indigenous Sport and Recreation program,

9 Department of the Prime Minister and Cabinet, Annual Report 20 I O-Il. pp 2-9.

10 Department of the Prime Minister and Cabinet, Annual Report 20 I 0-11, p. 13.

11 Senate Finance and Public Administration Legislation Committee, Amwal reports (No. I of 2011), p. 15.

12 Department of the Prime Minister and Cabinet, Annual report 20 I 0-11, p. 46.

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17

noting that the KPI target was 90.13 The committee commends the department for the inclusion of this information and encourages PM&C to continue to provide quantitative data in future annual reports where appropriate.

2.23 In relation to external scrutiny, the committee notes that PM&C was involved in one ANAO audit which examined the protection and security of electronic information held by Australian Government agencies. The report provides a detailed overview of the background of the audit and the ANAO's findings. The committee notes that while the report states that the ANAO report made four recommendations which were agreed to by PM&C, the department has not included information on what, if any, work has been done to implement those recommendations. The committee encourages PM&C to include this type of infom1ation in future annual reports.

2.24 PM&C provides an extensive breakdown of staffmg statistics and a detailed overview of staff development and training initiatives. In addition the report also offers a thorough overview of the Freedom of Information documents held by the departments and processes for lodging an FOI request.

2.25 The committee believes that the PM&C annual report meets all reporting requirements and provides a clear and informative overview of the operations of the department, in particular the various portfolio changes which occurred during the 201 0-11 financial year.

Department of Regional Australia, Regional Development and Local Government

2.26 The Department of Regional Australia, Regional Development and Local Government's (DRARDLG's) first annual report provides a comprehensive review of the departments operations since its establishment following the 2010 federal election.

2.27 Significant issues for DRARDLG during the fmancial year included the establishment of the department, involving the creation and implementation of a strategic plan and enterprise agreement. The report also highlights the department's focus on strengthening the Regional Development Australia (RDA) Network and RDA Committees.

2.28 Another initiative during the period was the establishment and support of the Natural Disaster Recovery Taskforce within the department in response to the damage caused by Cyclone Yasi and flooding across eastern Australia during 2011. During this period the department worked closely with PM&C and Finance to coordinate the Government's response in each affected area.

14

l3 Department of the Prime Minister and Cabinet, A nnual Report 20 I 0- 11, p. 117.

14 Department of Regional Australia , Regional Development and Local Government, Annual Report 2010-11, p. 14.

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18

Por(folio changes

2.29 As noted in chapter one, during the 20 I 0- 11 financial year DRARDLG was a department of state within the Prime Minister and Cabinet portfolio. Following the Administrative Arrangements Order of 14 December 2011, DRARDLG took on responsibility for the Arts and Sport becoming the Regional Australia, Local Government, Arts and Sport portfolio (Regional portfolio). The subsequent change to the Senate continuing order relating to the allocation of departments and agencies to Senate committees on 8 February 2012 resulted in oversight of the Regional portfolio moving to the Senate Standing Committee on Rural and Regional Affairs and Transport (RRAT Committee). Future annual reports produced by the department and all portfolio agencies will be examined by the RRA T Committee.

Transparency and scrutin y

2.30 The department's report is broken into six coloured parts: overview; perfonnance report; management and accountability; fmancial statements; appendices and glossary and indexes. These parts are then broken into individual chapters . This separation combined with the colour coded parts makes fmding and identifying specific information easy for readers.

2.31 The report on performance is broken down into chapters by outcome and provides a narrative overview of the department's performance followed by specific detail in relation to KPI's, allowing for easy comparison to the PBS. Highlights for each program provide an easy to read review of operations for the fmancial year. Each outcome is drawn together with a projected outlook for the future which consolidates the review of perfom1ance together nicely, providing a logical progression of information for readers. The outlook for the future also balances the lack of trend information available for a newly established department.

2.32 In relation to KPI's, the department identified five KPI's that were 'substantially achieved' and provided comments explaining what progress has been made toward fully achieving each KPI. 15

2.33 The report includes substantial and detailed information on procurement and consultancies. The combination of narrative infom1ation with specific detail in a table format provides a high level of information without overwhelming the reader. 16

2.34 The committee notes that three ANAO reports related to the work of the department:

15 Department ofRegional Au stralia , Regional Development and Local Government, Annual Report 2010-11, p. 34.

16 Department of Regional Au stralia. Regional Development and Local Government, Annual Report 2010-11, pp 92-95.

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19

" Perfom1ance Audit Report No. 03 20 I 0- 11 The Establishment,

Implementation and Administration of the Strategic Projects Compon ent of the Regional and Local Community I1~{rastructur e Program ;

" Performance Audit Report No. 24 20 1 0-11, Th e D esign and Administration of the Better Regions Program; and

" Performance Audit Report No. 42 2010- 11, The Establishment,

Implem entation and Administration of the Coun cil Allocation Component of the Regional and Local Community Inji∑astructur e Progran1. 17

2.35 DRARDLG provided an outline of the fmdings of each report and has agreed to, and is working toward, implementing all recommendations in future programs.

2.36 In relation to judicial proceedings, the department reported that employees provided evidence to the coronia} inquest into the Christmas Island boat tragedy of the SIEV 221 that occurred on 15 December 2010. At the time the annual report was printed , the inquest was ongoing.

2.37 The conunittee considers that DRARDLG's annual report satisfies all reporting requirements and commends the depa1tment on its first annual report.

Australian National Audit Office

2.38 The conunittee has decided to briefly comment on the Australian National Audit Office (ANAO) annual report as 2011 marked 110 years since the creation of the Office of the Auditor-General. The ANAO is a statutory authority and is required to report under its enabling legislation , the Auditor-General Act 1997, and to comply with the PM&C reporting requirements .

2.39 The committee notes that in the 20 I 0-11 financial year the ANAO produced 54 performance audit reports, including two major reports into the Green Loans Program and the Home Insulation Program. 18

2.40 The ANAO report offers a clear and detailed overview of operations which free of jargon and does not overwhelm the reader. The report is split into six parts making infom1ation easily accessible to the reader. The report on performance is well set out and allows for easy comparison to the PBS. The inclusion of a 'Highlights' and 'Area of focus' section at the front provides a snap shot of the information contained within the report.

2.41 In relation to transparency and accountability, the ANAO provides a well set out report and offers detailed information on both external and internal audits

17 All repot1s are available at the Australian National Audit Office website: http://www.anao.go\'.au/Publications / Audit-Repo11s (accessed 22 February 2012).

18 Australian N ational Audit Office, Annual Report 2010-11, p. 4.

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20

conducted during the year, including the annual Australasian Council of Auditor " Generals Macro Benchmarking Project.

2.42 In relation to other requirements , the report contains comprehensive infom1ation on staffing statistics and provides detailed overviews of staff education and training , including secondments, graduate and undergraduate programs and study assistance.

General comments

Financial Management and Accountability Act 1997 requirements

2.43 Agencies and departments subject to the Financial Management and Accountability Act 1997 (FMA Act) are required to produce an annual report in accordance with the Requirements for Annual Reports: Departments, Executive Agencies and FMA Act Bodies (PM&C requirements) which are reviewed annually and issued by the Department of the Prime Minister and Cabinet and approved by the Joint Committee of Public Accounts and Audit.

2.44 For the 20 I 0-11 financial reporting period there were three significant amendments to the PM&C requirements pertammg to reporting on the Commonwealth Disability Strategy (CDS), social inclusion measures and Freedom of Infom1ation.

Commonvt ealth Disability Strategy

2.45 The committee notes that the requirement for annual reports to include information on the implementation of the Commonwealth Disability Strategy has been discontinued as disability reporting now occurs within four different reporting mechanisms: National Disability Strategy (NDS) reporting to COAG ; the State of the Service Report prepared by the Australian Public Service Commission (APSC); the

How Australia is Fairing report; and within departmental annual reporting under the social inclusion agenda.

2.46 Departments and agencies were required to include an 'explicit and transparent reference to other disability reporting mechanisms specifically noting where agency level information can be found'. 19

2.4 7 The PM&C requirements provide suggested wording to satisfy the new disability reporting requirement which was widely utilised by departments and agencies. Some agencies continued to include information on disability strategies 20

19 Department of the Prime Minister and C abinet, Requirem ents .for Annual Reports:.for departments. executive agencies and FM A Act bodies, 8 July 2011, p. 29.

20 See ARIA , Annual ReporT 2010-11. p. 249.

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21

while others included some disability strategy reporting within the social inclusion section of their annual report. 21

2.48 The committee notes that some agencies, such as the National Archives of Australia, while offering some information on disability strategies within their report appear not to provide explicit references to external disability reporting mechanisms, which is mandatory under the PM&C requirements. 22 The committee encourages agencies who continue to report on disability strategies within their annual report to provide details of external reporting mechanisms to satisfy this requirement.

Social inclusion

2.49 Annual reports for departments whose activities impact on social inclusion outcomes must provide information in their annual report about 'relevant programs and progress in relation to social inclusion strategic change indicators'. 23

2.50 While most agencies included some form of social inclusion information within their annual report, the format and type of infom1ation included varied greatly. The conm1ittee feels that the broad description of the reporting requirement offered in the PM&C requirements makes it difficult to assess whether an agency has fully satisfied the requirement.

2.51 The PM&C requirements state that further information can be found on the social inclusion website. 24 While the website provides infom1ation on the social inclusion board and a broad list of departments who administer social inclusion policies and initiatives, there does not appear to be a complete list of departments and agencies that are required to include information on social inclusion programs in their annual reports. Instead, enquires regarding the application of this requirement to specific agencies are directed to a contact email. 25 The committee believes that a complete list of departments and agencies, where the social inclusion reporting requirement is applicable, should be placed on the social inclusion website to ensure that all appJicable annual reports include the required information.

Recommendation 1

2.52 The committee recommends that a list of all departments and agencies required to report on social exclusion outcomes should be published on the social inclusion website.

21 See Australian Public Service Commission, Annual Report 2010-1 !, pp 33-34.

22 National Archives of Australia, Annual Report 2010-11, pp 44--45.

23 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports: for departments. executive agencies and FMA Act bodies, 8 July 2011, p. 7.

24 viww.socialinclusion .trov.au

25 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports: for deparrme!lts , executiv e agencies and FMA Act bodies, 8 July 2011, p. 7.

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22

Freedom of !J~formation

2.53 Recent refonns to Freedom of Information (FOI) legislation resulted in the establishment and commencement of the Information Publication Scheme (IPS) on I May 2011. The committee notes that the IPS replaced the previous annual reporting requirement under section 8 of the FOI Act. The IPS requires agencies to publish information on a website covering 10 categories, including , but not limited to, the agencies structure , functions and statutory appointments.

26

2.54 For the 20 I 0-11 financial year, agencies were required to include a section 8 statement covering the period 1 July 20 I 0 to 30 April 20 I1 and a statement outlining the changed reporting requirement s under the IPS. An example of wording for this statement was provided and was utilised by the majority ofFMA Act agencies.

2.55 Most annual repm1s included the sample wording provided within the PM&C requirements and provided detailed information on the types of documents held by the department or agency and the process for lodging a FOI request. The committee acknowledges the substantial detail offered by the Department of Regional Australia , Regional Development and Local Government, including information on the timeliness of resolutions .

Use of compliance index by CAC Act bodies

2.56 A s was noted in the committee's first report for 2011 , the committee found the use of a compliance index in relation to the Commonwealth Authorities and Companies (Report of Operations) Orders 2008 by CAC Act bodies useful in assessing agencies annual reports. The conunittee notes that a number of CAC Act bodies, including the National Film and Sound Archives, National Gallery of Australia and the National Museum of Australia , included compliance indexes in their 201 0-11 annual reports and encourages other agencies to adopt this approach in future annual reports.

Senator Helen Polley

Chair

26 Dep artment of the Prime Minister and Cabinet. Requirem ents for Annual R eports: for departments, executive agencies and FM A Act bodies. 8 July 2011 , p. 21.

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Appendix 1

Dates relating to the timeliness of presentation and debate in the Senate

# In the case where a report is examined in this report and has been tabled in the Senate after 31 October 2010, both the House of representatives [H] and the Senate [S] tabling dates have been included. Note: there is no provision in the House of Representatives Standing and Sessional Orders for annual reports to be tabled out of

sesswn.

Reporting Body Sent to Minister Received by Tabled in the Senate Consideration

Minister or presented out of in the Senate-sitting(*) debate

PARLIAMENT

Department of Parliamentary - - 13 October 2011 -

Services- Report for 2010-11

Department of the Senate- - - 13 October 20 I I -

Report for 20 I 0-11

Australian Parliamentary - - 27 October 2011 * -

Service Commissi011er- Report tor 2010-11

PRIME MINISTER AND CABINET PORTFOLIO

Au stralian Council for the 4 October 20 II 4 October 2011 26 October 20 I I * -

Arts-Report for 20 I 0-11

Australian Film, Television and 4 October 20 II 4 October 2011 20 October 2011 * -

Radio School-Report for 201 O-Il

Australian Institute of Family 1 September 20 I 1 2 September 2011 H: 13 October 2011 -Studies-Report for 20 I 0-11 S: I Nov ember 2011

Australian National Audit - - 22 September 20 I 1 -

Office-Report for 201 0-11

Australian National Audit - - 23 September 2011 * -

Office-Report for 2010-11-Corrections [2]

Australian National Maritime 11 October 20 I I 13 October 20 II 28 October 2011 * -

Museum - Report for 2010-11

Australian Public Service 30 September 20 II 30 September 2011 H: 31 October 2011 -Commis sion--Report of the Australian Public Service S: I November 201 I

Commi ssioner for 20 I 0-11, including report of the Merit Protection Commissioner

149

24

Reporting Body Sent to Minister Received by Tabled in the Senate Consideration

Minister or presented out of in the Senate-sitting(*) debate

Australian Public Service 9 November 20 11 9 Novemb er 2011 H: 24 ovember 20 II Comm ission-State ofthe Service Report for 20 I 0-1 I S: 7 February 2012

Australian Sports Anti-Doping 13 September 2011 13 September 201 1 12 October 20 II -Authority - Reports for 20 I 0-11

Australian Sports 12 October 2011 12 October 2011 28 October 2011 * -

Commis sion- Report for 20 I 0-1 I, including financial report for Australian Sports Foundation Limited

Bundanon Trust Limited 14 October 201 1 14 October 201 I 20 October 2011 * -

Commonwealth Ombudsman- 23 December 2011 23 December 2011 7 February 2012 -

Report for 20 I 0-1 I

Department of the Prime 7 October 2011 7 October 2011 H: 13 October 2011 -

Minister and Cabinet- Report for 2010-11 S: I N ovember 2011

Department of Regional 6 October 2011 6 October 20 II 14 October 2011 * -

Australia , regional Development and local Government- Report for period 14 September 20 I 0 to 30 June 2011

Inspector-General of 5 October 201 1 5 October 20 11 12 October 20 11 -

Intelligence and Security-Report for 2010-ll

National Archives of Au stralia 5 October 20 I 1 5 October 20 11 H : 13 October 2011 -

and National Archives of Australia Advisor) Council- S: I N ovember 201 1

Reports tor 20 I 0-1 1

National Australia Day 30 September 2011 30 September 201 1 18 October 2011 * -

Council- Report for 2010-11

National Film and Sound 4 October 201 1 4 October 20 I 1 H: 31 October 201 1 -

Archive- Report for 20 I 0-11

S: I N ovember 2011

National Ga llery of Australia- 23 September 20 I I 23 September 201 1 21 October 2011 * -Report tor 2010-11

National Library of Australia- 23 September 20 I 1 23 September 201 I 26 October 20 I I * -Report tor 2010-11

National Museum of 23 September 2011 23 September 201 1 I I October 20 I I -

Au stralia- Report for 20 I 0-11

150

25

Reporting Body Sent to Minister Received by Tabled in the Senate Consideration

Minister or presented out of in the Senate-sitting(*) debate

Office of the Australian 13 October 20 I I I 3 October 20 II H: 31 October 2011 -

lnfom1ation Co mm issioner-Report for the period I S: I November 2011

November 20 I 0 to 30 June 2011. including financial statements for the Office of the Privacy Comm issioner for the period I July to 31 October 2010

Oftice of the Official Secretary 7 October 2011 7 October 20 11 25 October 20 II* -

to the Governor-General -Report for 20 I 0-1 I

Old Parliament House- Report 23 Septemb er 2011 23 September 2011 28 October 20 II * -for 2010-11

Privacy Act 1988-Report for 8 August 2011 16 August 2011 20 September 20 I I -

2009-l 0 on the operation of the Act, including financial statem ents for the Office of the Privacy Commissioner-Co rrecti on

Public Lending Right 26 September 2011 29 September 20 II 28 October 20 11 * -

Com mittee-Report for 20 I 0-II

Screen A ustralia- Report for 29 September 2011 11 October 20 II 20 October 2011 * -

2010-11

FINANCE AND DEREGULATION PORTFOLIO

Albury-Wodonga D evelopment 25 October 2011 27 October 2011 H: 31 October 2011 -

Corporation - Report for 20 I 0-]] S: I Novembe r 201 1

ASC Pry Ltd- Report lor 2010- 30 September 201 1 3 October 2011 H : 31 October 2011 -

II

S: I November 2011

ASC Pty Ltd-Statement of 3 October 2011 3 October 2011 H: 31 October 2011 -

corporate intent 2011 to 2014

S: I November 2011

Austra !ian Electoral 27 September 2011 27 September 2011 14 October 201 I* -

Com mission- Report for 20 I 0-II

A ustralian Electoral 20 O ctober 2011 20 October 2011 14 Novemb er 2011 * -

Commi ssion-Election 20 I 0--Funding and disclo. ure report

1 1'.1

26

Reporting Body Sent to Minister Received by Tabled in the Senate Consideration

Minister or presented out of in the Senate-sitting (*) debate

Australian Political Exchange 10 May 2011 10 May 2011 14June2011 -

Council-Reports for 2007-08. 2008-09 and 2009-10

Australian Reward Investment 30 September 2011 30 September 2011 H : 31 October 2011 -Alliance-Report for 20 I 0-11 [final report) , including S: I November 2011

financial statements for Commonwealth Superannuation Scheme, Public Sector Superannuation Scheme and

Public Sector Superannuation Accumulation Plan

Commissioner for 30 September 20 II 2 October 2011 21 October 2011 * -

Superannuation (ComSuper}-Report tor 20 I 0-11

Department of Finance and 19 September 20 II 20 September 2011 17 October 2011 * -

Deregulation - Report for 2010-II

Department of Finance and 9 September 2011 9 September 20 II 30 September 2011 * -

Deregulation-Campaign advertising by Australian government departments and agencies-Report for 20 I 0-11

Department of Finance and 9 December 20 I I 9 December 2011 25 January 2012* -

Deregulation-Certificate of com pi iance-Report for 2010-II

Department of Finance and 25 November 2011 25 November 2011 13 December 2011 * -

Deregulation-Consolidated financia l statements for the year ended 30 June 2011

Department of Finance and 14 September 20 I I 14 September 2011 H: 24 November 2011 -

Deregulation - Issues from the advances under the annual S: 7 February 2012

Appropriation Acts- Report for 2010-11

Final budget outcome 2010- 29 September 2011 29 September 2011 4 October 201 I* -

It-R eport by the Treasurer and the Minister tor Finance and Deregulation

Future Fund Board of Guardians 25 Odobcr 20 I I 26 October 20 II 28 October 20 I I * -

and Future Management Agency- Report for 20 I 0-11

152

27

Reporting Body Sent to Minister Received by Tabled in the Senate Consideration

Minister or presented out of in the Senate-sitting(*) debate

Medibank Pri\'ate Limited- 8 September 20 II 12 September 2011 11 October 2011 -

Report for 201 0-11

Members o.f Parliame11t (Staff) 4 October 20 I I 4 October 2011 22 November 20 II -

Act 1 984- Report for 201 0-11

Mid-year economic and fiscal 25 Novembe r 20 I I 25 November 20 I I 30 November 2011 * oulook- 20 11-12- Statement by the Treasurer and the Minister for Finance and

Deregulati on

NBN Co Limited- Report for 21 September 2011 21 September 2011 H: 13 October 2011 -

2010-11

S: 1 November 2011

NBN Co Limited- Statement of 26 August 2011 26 August 2011 11 October 2011 -

Corporate Intent- 2011-13

153

154

The Senate

Foreign Affairs, Defence and Trade

Legislation Committee

Annual reports (No. 1 of2012)

March 2012

155

© Commonwealth of Australia

ISBN 978-1-74229-572-5

This document is produced by the Senate Standing Conunittee on Foreign Affairs, Defence and Trade Secretariat , and printed by the Senate Printing Unit, Parliament House, CanbeJTa.

156

Members:

Membership of the Committee

Senator Ursula Stephens, ALP, NSW (Chair)

Senator Alan Eggleston, LP, WA (Deputy Chair)

Senator Mark Bishop, ALP, W A

Senator David Fawcett, LP, SA

Senator Scott Ludlam, GRN, WA

Senator Anne McEwen, ALP, SA

157

Committee secretariat

Dr Kathleen Dennody, Secretary

Ms Alpana Modi, Research Officer

Ms J edidiah Reardon, Senior Research Officer

Ms Penny Bear, Research Officer

Ms Jo-Anne Holmes, Administrative Officer

Parliament House, Canberra ACT 2600

Phone: (02) 6277 3535, fax: (02) 6277 5818

e-mail: fadt.sen@)aplu!ov.au; Internet: http://www .aph.gov.au /senate_fadt

158

Table of Contents

Membership of the Committee ........................................................................ iii

Preface Te1111S of reference ...... ....... ............ ........ ... ............... ...... .... ........ ........... .................. 1

Role of annual reports ............................................................................................ 2

Assessment of annual reports ................................................................................. 2

Annual reports considered .................. ..... ................ ............ ................... ...... .......... 3

General comments on the annual reports .... .... ....................................................... 3

Chapter 1 Annual reports of departments ................. .............................................................. 7

Department ofDefence ........................................................................................... 7

Department of Foreign Affairs and Trade ...................... .... ....................... ........... 10

Departmental Overview ... ... ......... .... ..................................................................... 1 2

Department ofVeterans' Affairs ............................ ............................................... l3

Chapter 2 Annual reports of non-statutory authorities and government companies ....................................................................................................... 17

Defence portfolio

Defence Materiel Organisation .................. .............. ........ ....... ............... .... ......... .. 17

Australian War Men1orial .............. ..... ......... ...... ....... ....... ........ .................. ... .... .... 18

ASC Pty Ltd .......... ........ ......... ......... ..... .................. ............... ........... ........ ..... ........ 19

Defence Housing Australia .... ..... ..... ...................... .............. ....... ..... ............... ...... 21

The Army Amenities Fund Company .................................................................. 22

Foreign Affairs and Trade portfolio

Australian Agency for International Development .............................................. 22

Australian Trade Commission ...... ........ .......................................................... ...... 28

Export Finance and Insurance Corporation .......................................................... 29

Australian Centre for International Agricultural Research .................................. 29

Appendix 1 List of annual reports tabled during the period

1 May 2011 to 31 October 2011 ............................................................................. 33

IV

159

160

Preface

Terms of reference

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.

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. This Report on Annual Reports also examines Annual Reports that were tabled after 31 October 2011. 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 .

161

2

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 fom1 part of the historical record.

Annual reports and Portfolio Budget Statements (PBSs) are the principal fonnal accountability mechanisms between government and departments and from depattments through (or on behalf of) govemment to the Parliament. 1

Assessment of annual reports

5. The annual reports are examined by the committee to determine whether they are timely and 'apparently satisfactory'. 2 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 annllal 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 Allthorities 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).

Requirem ents for amwal reports for departments, executive agencies and FA;JA Act bodies. Department of Prime Minister and Cabinet, 23 June 2010. p. 2. www .dpm c. gov .au/guidelines /index .cfm

Refer to Appendix 1 for a table of the reports referred to the committee for scrutiny.

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Annual reports considered

7. The annual reports of the following organisations have been examined by the committee:

D efence portfolio

Department of Defence

Defence Materiel Organisation

ASC Pty Ltd

Defence Housing Australia

Army Amenities Company

Foreign Affair s portfolio

Department ofF oreign Affairs and Trade

Australian Agency for International Development

Australian Centre for International Agricultural Research

Trade por(folio

Australian Trade Commjssion

Export Finance and Insurance Corporation

Veterans' Affairs

Department of Veterans' Affairs

Australian War Memorial

General comments on the annual reports

Timeliness in tabling reports

8. Under Senate Standing Order 25(20)(c) , the committee must report to the Senate any lateness in the presentation of annual reports.

9. In accordance with the Requirem ents for Annual Reports published in June 2010, agencies are required to present:

A copy of the annual report ... to each House of Parliament on or before 31 October in the year in which the report is given. If Senate Estimates is scheduled to occur prior to 31 October, it is best practice for annual repo11s to be tabled prior to those hearings.

3

3 Requirem ents for amwal reports for departments, executi, "e agencies and FMA Act bodies. D epartment of Prime Minister and Cabinet. 23 June 2010, Part 1, section 4.

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4

10. A number of annual reports were tabled late. On 11 October 2011 , the Chair of the Australian Military Forces Relief Trust Fund wrote to the Minister for Defence Science and Personnel, Hon Warren Snowdon MP, noting that due to tight timeframes in relation to audit outcomes it would be difficult to ensure that the reports could be printed and ready for tabling. The chairman requested that the minister note that it was intended to have the reports tabled as soon as practicable after 15 October 2011 but no later than 22 November 2011 .

4

The report was tabled in the House of Representatives

on 21 November 2011 and the following day in the Senate.

11. The Chairman of Trustees for the Royal Australian Air Force Veterans' Residences Trust Fund also wrote to the Minister for Defence Science and Personnel seeking an extension for the lodgement of the Trust's 2010-2011 Annual Report. 5 The report was presented out of sitting on 29 November 2011 and tabled in both houses of Parliament on 7 February 2012. The Chairman of the RAAF Welfare Recreational Company , likewise wrote to the Hon Warren Snowdon MP , indicating that the company was awaiting the release of ANAO's Audit Report and did not expect to meet the reporting requirements under section 36 of the Commonw ealth Authorities and Companies Act 1997.6 The report was tabled in the House of Representatives on 21 November 2011 and in the Senate on the following day. For a similar reason, the Chairman of Royal Australian Navy Central Canteens Board wrote to the Minister advising him that due to the late completion of the Audit, the Board would not be able to comply with its reporting obligations and sought an extension until 30 November 2011 for the tabling of its Annual report.

7

The report was tabled in the

House of Representatives on 24 November 2011 and in the Senate on

7 February 2012.

12. A table detailing the dates relating to the timeliness of presentation is at Appendix 1. It should be noted that, apart from those referred to above, the annual reports of Defence Housing Australia presented out of sitting on 4 November 2011 and tabled in Parliament on 21 November 2011; the Repatriation Medical Authority was tabled in Parliament on 21 November 2011; the AAF Company report was tabled on 22 November 2011.

Comments made in the Senate

13. The conm1ittee is obliged, under Senate Standing Order 25(20)( d), to consider any remarks made about these reports in the Senate. There were no conm1ents in the Senate on any of these reports.

4 Brigadier Gavan Reynolds to the Hon Warren Snowdon MP. II October 20Il

5 D.E. Tindal to the Hon Warren Snowdon MP , 6 October 20Il.

6 R.P.W . Rodgers CSM to the Hon Warren Snowdon MP 5 October 2011 .

7 C.W. Thoma s to the Hon Warren Snowdon MP , 30 September 201 1.

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Matters of significance

14. In accordance with Senate Standing Order 25, the committee is to note any significant matt.ers 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.

Bodies not presenting annual reports to the Senate

15. The committ.ee 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

16. 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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Chapter 1

Annual reports of departments

Department of Defence

1.1 The Department of Defence Annual Report 20 I 0-11 was tabled in the House of Representatives on 31 October 2011 and in the Senate on 1 November 2011.

Matters relating to the operations and pelformance of the department

Defence's financial statements

1.2 The committee is required to note any significant matters relating to the operations and performance of the bodies presenting their annual reports. The committee draws attention to the department's financial statements.

1.3 It is mandatory under section 57 of the Financial Managem ent and Accountability Act 1997 for the annual report to include a copy of the audited financial statements and the Auditor-General's report thereon.

ANAO audit

1.4 The ANAO report for the Department of Defence stated:

During the final phase of the 2010- 11 audit, Defence partially resolved one significant and two moderate audit issues that had been previously identified. The significant audit issue related to MILIS [Military Integrated Logistics Information System] change management; and the two moderate issues related to delays in the rollout of AUC [Assets Under Construction] to General and SME [Specialist Military Equipment) asset classes. In addition, one moderate audit issue relating to the management of EO [Explosive Ordinance] disposal and destruction was resolved. No new moderate issues were identified during the 20 I 0- 11 final audit.

At the conclusion of the 2010-11 audit, two significant and twelve moderate audit issues remained outstanding. The majority of these audit issues relate to Defence's inventory and asset management, including supporting IT systems.

An unqualified auditor 's report was issued on 16 September 2011. 1

1.5 The areas where significant or moderate risks remain outstanding in 20 I 0-11 were:

" Inventory and assets management

A ,'\' AO Audit Report .\' a. I 7 2011- 12. A udit of the .finan cial statements C?lA ustra/ian G overnment Entiti es for the period ended 30 June 2011 , pp I 07-108.

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8

" Management of Specialist Military Assets

" Financial Reporting Framework-Assurance over DMO services

" Defence's financial management information system: ROMAN [Resource and Output Management and Accounting Network]

" Human resource management

" IT general contra Is environment 2

Financial reportingfi∑ameH ∑ ork

1.6 The conm1ittee's review of the previous 2009-10 Annual Report referred to seeking evidence of progress on the outstanding matter of management and oversight of service bureau arrangements between Defence and the Defence Materiel Organisation (DMO).

1. 7 ANAO noted in its Audit Report No.17 2011-12 that one moderate audit issue had remained outstanding at the completion of the previous 2009-1 0 audit.

Defence has advised that, in conjunction with DMO , work is continuing on strengthening and documenting the assurance activities between the two agencies. Defence expects this work to be completed in May 2012.3

Strategic Reform Program

1.8 The committee has previously noted the significance of the roll-out of the Strategic Reform Program (SRP). In 20 I 0-11, the SRP moved well into its implementation phase with the achievement of a cost reduction target of $1,016 million for the year.

4

The Secretary and Chief of the Defence Force (CDF)

stated in their overview that:

Over 2010-1 I, Defence generated Strategic Reform Program savings in excess of one billion dollars and commissioned a review into shared services that will create further opportunities for efficiency. This will fundamentally change the way Defence delivers services and will achieve further savings that can be returned to Government. 5

1.9 Areas identified in the report where cost reductions were achieved included:

" upgrading and consolidating Defence's ageing Information and Conmmnications Technology (ICT) infrastructure

2 .-lustra/ian /l.:ational Audit Office. :-1..\'.-10 Audit Report ,\∑ a. I 7 1() I 1- 12: Audit of the financial tatem ents of Australian Govemm ent Entiti es for the period ended 30 June 2011, pp I 09-1 14.

3 Australian tv'ational Audit Office. A.\'AO Audit Report No. I 7 2011- 12: Audit of the financial statements of Australian Government Emities for the period ended 30 June 2011, p. 113.

4 Defence Annual Report 2() I n-2() 11. rolume 1 D epartment of D efence, p. 7.

5 Defence ,/nnual Report 2() I 0-20 ll. volume 1 D epartment of Defence, p. 3.

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9

" conversion of military and contract positions into Australian Public Service (APS) positions

" improved demand management of travel, training , professional services and garrison support

" streamlining the maintenance of military equipment

" making contract improvements across a range of support and sustainment services

" changes in the way that financial risk is managed. 6

l.lO The committee notes that the Minister for Defence announced in May 2011 that the government would implement a second phase of further SRP-related savings that would include reducing the growth of Defence's APS workforce, further shared services refom1s, and project management accountability reforms. 7

Operations

1.11 The Secretary and CDF's overview stated that the 20 I 0-11 financial year represented 'one of the most intense and sustained operational periods in recent history'. 8 Defence conducted 17 operations in 2010-11 ranging from combat deployments overseas to border protection and disaster relief within Australia and the surrounding region. 9

1.12 The Defence Annual Report outlined Defence's recent actiVIties under Operation SLIPPER, the Australian Defence Force's (ADF) contribution to the North Atlantic Treaty Organisation-led International Security Assistance Force in Afghanistan. Operation SLIPPER represented the most significant operation for the ADF with around 1550 personnel based witllln Afghanistan and another 800 deployed across the broader Middle East Area of Operations.

10 In 2010-11, the ADF continued

mentoring the Afghan National Army's 4'h Brigade of the 205'h (Hero) Corps to enable it to take on responsibility for security in Uruzgan Province. 11 According to the Annual Report, the key components of the ADF's contribution included the troops in the Mentoring Task Force and Special Operations Task Group; Air Force C-130, P-3 and C-1 7 Globemaster III aircraft; and logistics , communication and movements personnel within the Middle East.

12

6 Defence Annual Report 20/0-20/ I. rolume I Department o.f D efence, p. 7.

7 Department of Defence, Minister for Defence Materiel, Media Release. 'Strategic Reform Program', 6 May 20Il.

8 Defence Annual Report 20/0-20/ I. rolume I Departm ent r4Defence. p. 2.

9 Defence Annual Report20/0-2011. volume I Deparrmem a_{ D efence, p. 4.

10 Defence Annual Report 2010-2011. volume I Department o.f D efence, p. 65.

II Defence Annual Report 2010-2011. volume I Department of Defence, p. 65.

12 Defence Annual Report 2010-2011. volume I Department of D efence. p. 65.

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10

1.13 The report acknowledged the deaths of 11 Australian soldiers on operations in Afghanistan in 2010-11.13

1.14 Other overseas operations in 2010-11 included deployments of ADF soldiers to Iraq, Darfur, East Timor, Solomon Islands, Sudan, Israel /Lebanon, Egypt, Japan and New Zealand. Domestic operations included disaster relief effmts in Queensland and Victoria.

Reviews and consultants

1.15 The Secretary and CDF's overview noted the number of reviews into various aspects of Defence conducted recently:

Defence has undertaken a large number of reviews into business, financial and processes over the last year to improve outcomes. The Black Review into accountability will challenge institutional performance and accountability as well as the management of skills and specialisation. Defence is detennined to rise to this challenge. We are cunently considering the recommendations of several reviews into the Defence culture that were announced by the Minister for Defence in April 2011. Action plans will be developed to adjust aspects of our culture where necessary. 14

1.16 In 2010-11, Defence and DMO spent a total of $59.8 million on consultancies and $35.4 million on external legal expenses. 15

Summary

1.17 The committee finds Defence's 2010-20 II Annual Report to be both an infom1ative and a well-produced account of the department's activities over the past year and that it meets all the requirements for departmental annual reports. The committee, notes, however, that the activities detailed in the annual report are subject to inquiry by the Senate Foreign Affairs , Defence and Trade References Committee in relation to its inquiry into Procurement procedures for Defence capital projects. Whilst this committee finds the annual report to be 'apparently satisfactory' in complying with the relevant requirements for the preparation of annual reports, it takes note of the fact that the references committee is considering the efficacy of the activities themselves.

Department of Foreign Affairs and Trade

1. 18 The Department of Foreign Affairs and Trade (OF AT) Annual Report

20 I 0-20 II was tabled in the Senate on 31 October 2011.16

13 Defence Annual Report 2010-20 II. 1'0/ume 1 Department of D efence, p. 65.

14 Defence Annual Report 2()/0 -2011. rolume I Departmellf a,{ D efence, p. 3.

15 Defence Annual Report 2()1()-2011. volume I Department of D efence, pp 341-344.

16 Tabled in the chamber having been presented out of session on 25 October 2011.

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II

Review by Departmental Secret01y

1.19 The Secretary of the Department, Mr Dennis Richardson AO, included a helpful summary of the significant issues and developments during the year; an overview of the department's performance and fmancial results; and the outlook for the following year. In regards to the 'international year in review', Mr Richardson stated:

The department worked over the last year in a global and regional environment that is being reshaped by changing economic and strategic relativities ... Continuing fragilities in the global economy and the need for a coordinated international response was also an important context for the department's work. 17

International economy, trade and investment

1.20 The Secretary stated that the department managed an active schedule of Free Trade Agreement negotiations:

... including with Australia's top three individual country export destinations: China, Japan and Republic of Korea. Since March 2010, the department has led seven rounds of Trans-Pacific Partnership (TPP) negotiations, seeking agreement on new approaches to regulating trade in goods, services and investment in the Asia-Pacific region. 18

Regional and international issues

1.21 The Secretary stated:

We advanced Australia's non-proliferation and disarmament agenda by establishing, with Japan, the Non-Proliferation and Disatmament Initiative (N PO l)-a cross-regional ministerial-level grouping to promote and support implementation of the outcomes of the May 20 I 0 Nuclear Non " Proliferation Treaty (NPT) Review Conference. We engaged partners, including the US, Japan, UK, France, NATO and the EU in traditional security and non-traditional areas such as cyber and counter-terrorism. 19

C01porate governance and managem .ent

1.22 The committee notes that the department established a position of Chief Information Officer, and initiated an Infom1ation Communications Technology refonn program.

17 Department ofForeign Affairs and Trade. Annual Report 2010-2011, p. 3.

18 De par! men! of Foreign Affairs and Trade. Annual Reporl 2010-2011, p. 6.

19 Departmel11 ofF oreign Affairs and Trade. Annual Report 2010-2011, p. 7.

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12

Departmental Overview

1 .23 The departmental overview included the mandatory annual report requirements-the roles and functions of the department; the organisations structure; and the outcome and program structure.

Report on Pe1jormance

1.24 The Requirements for Annual Reports::! 0 require that the annual report must include a review of how the department has performed during the year in relation to the deliverables and Key Perfonnance Indicators (KPis) of the department's programs and their effectiveness in achieving the planned outcomes. The annual report meets

this requirement.

Management and Accountability

Co1porate Governance

1.25 The annual report contained a statement of the structures and processes that the department had in place during the year to implement the principles and objectives of corporate governance.

Extern a I Security

1 .26 The annual repm1 provided information on the significant developments m external scrutiny of the department and the department's response.

1.27 In 20 I O-Il, the Auditor-General tabled in Parliament , three reports by the ANAO relating to the department's operations : Report No. 22 Audits of the Financial Statements of Australian Government Entities for the period ended 30 June 201 0; Report No. 35 Management of the Overseas Leased Estate; and Report No. 54 The Interim Phase of the Audit of Financial Statements of Major General Government

Sector Agencies for the year ending 30 June 2011.

Manag ement of Human Resources

1.28 The report included an assessment of the department's effectiveness m managing and developing its staff to achieve its objectives.

Assets Management

1.29 The department also provided an assessment of the effectiveness of assets management.

20 Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies. Approved by the Joint Comm[ttee of Public Accounts and Audit under sections 63(2) and 70(2) of the Public Serl'ice Act 1999.

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13

C onsu It ants

1.30 The annual report included a summary statement detailing expenditure on new consultancy contracts ; and expenditure on ongoing consultancy contracts.

Grant programs

1.3 1 The annual report produced a list of the grant programs administered or managed by the department in 20 l 0-ll .

Financial Statements

1.32 Section 57 of the Financial Manag ement and Accountability Act requires a copy of the audited financial statements and the Auditor-General's report to be included in each department's annual report. The ANAO statement by the Chief Executive and Chief Financial Officer said:

In our opinion, the attached financial statements for the year ended 30 June 2011 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister's Orders made under the Financial Management and Accountability Act 199 7, as amended.

SummaiJ '

1.33 The committee finds that the DFAT Annual Report adequately complies with all reporting requirements for a department.

Department of Veterans' Affairs

1.34 The Department of Veterans' Affairs (DV A) is the primary service delivery agency that develops and implements programs to assist the veteran and defence force communities. It provides administrative support to the Repatriation Commission and the Military Rehabilitation and Compensation Commission. The Repatriation Commission administers the Veterans' Entitl ements Act 1986, and is responsible for granting pensions, allowances and other benefits , providing treatment and other services. The Military and Rehabilitation and Compensation Commission is responsible for the administration of benefits and arrangements under the Militmy Rehabilitation and Comp ensation Act 2004.

1.35 DV A's Annual Report 2010-20 II was presented to the Parliament on 31 October 2011.21 The report also included separate reports of both the Repatriation Commission and the Military Rehabilitation and Compensation Commission. They desctibed how each commission interrelates with DV A , its membership and main activities for the reporting period. The reports do not include performance reporting , which is covered in DV A's repmt.

21 Tabled in the chamber having been presented out of session on 28 October 2011.

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14

1.3 6 The May 2011 Budget allocated a modest increase of $14 7 million to DV A , taking the full amount to $12.3 billion for the financial year. According to the Secretary , Mr Ian Campbell, the funding would enable the department to continue to provide 'a high level of service to members of the veteran community.' He said:

Although we face the challenge of delivering that high level of service with a lower departmental operating budget, I am confident that changes such as the shared services agreement with the Department of Human Services will allow us to better focus our resources on meeting the needs of the veteran

. 27

comm um ty. ~

1.3 7 Some of the notable developments cited in the reports include:

" The establishment of the National Commission on the Commemoration of the Anzac Centenary to consider ways in which Australia could commemorate 100 years of Anzac tradition starting in 2014. After receiving 600 submissions, which assisted its deliberations, the comn1ission submitted a report on 28 March 2011 to the Prime Minister. On the same day the Prime Minister announced the establishment of the Anzac Centenary Advisory Board to provide strategic advice to governn1ent on the planning and implementation of Anzac Centenary events and initiatives.

" The release of the Review of Military Compensation Arrangements report in March 2011.

" A major rationalisation of DV A's ICT infrastructure following the signing of a five-year memorandum of understanding for shared services with the Department of Human Services. 23

1.38 The Secretary noted in his comments regarding the year ahead for DVA that:

The Rehabilitation and Compensation Business Redesign project will identify how we can improve the delivery of rehabilitation and compensation services into the futme. The Budget also allocated $3.4 million to develop a business proposal for a pilot project to revamp current processes, which would vastly improve the service for our clients.

With better business processes combined with advancements in how veterans and defence personnel engage with us, we will make great strides in ensuring the interaction between DV A and the people we serve is state of the a1i.

24

22 Repatriation Commission. Military Rehabilitation and Comp ensation Commission. D epartment ofTeterans' .1ffairs. Annual Reports 20 I 0-10 II. p. 2.

23 Repatriation Commission. Military Rehabilitation and Comp ensation Commission. D epartment of l'eterans' ∑ 1ffairs. i∑ 1nnua/ Reports 201 0-2D II, pp 3-5.

24 Repatriation Commission. Military Rehabilitation and Comp ensation Commission. Department of l"eterans' Affairs . .4 nnual Reports 20 I 0-20 II, p. 7.

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1.39 M :r Campbell also indicated that the Anzac Centenary in 2015 would be a key focus for DV A and would 1become more so as we get closer to the date 1 " 25

Data-matching program

1.40 The Department of Veterans~ Affairs-Data-matching program-Report on progress 201 0-20 l I was tabled in the Senate on 31 October 2011. This is the twentieth report of the Data Matching Program.

Report on Progress

1.41 The report shows the prosecution statlsttcs ; the discrepancy stattsttcs; the departmental expenses for the 201 O- Il reporting year; the projected savings statistics; the total savings for the 20 I 0-11 financial year; and cumulative savings from the data matching program.

Summary

1.42 The committee finds that the DV A Annual Report complies adequately with all reporting requirements for a department.

25 Repatriation Commission. Military Rehabilitation and Compensation Commission, D epartment of l'eterans' ∑1ffairs . Annual Reports 2010-20 II, p. 7.

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Chapter 2

Annual reports of non-statutory authorities and government companies

Defence portfolio

Defence Materiel Organisation

2.1 The annual report of the Defence Materiel Organisation (DMO) is contained in volume 2 of Defence's annual report. It was tabled in the House of Representatives on 31 October 2011 and in the Senate on 1 November 2011.

2.2 The DMO is a prescribed agency under the Financial Management and Accountability Act 1997. This means that although the DMO remains inextricably linked to Defence, it is required to account directly to the Minister for Defence on its fmancial management. The annual report noted:

Our status as a prescribed agency within the Defence Portfolio, clarifies and confitms the DMO's role of delivering and maintaining defence equipment using specialist commercial, engineering and project management expertise. This construct provides the basis for effective relationships with DMO's customers in Defence through clearer and more transparent roles and accountabilities for the delivery of the DMO outcomes. 1

2.3 Mr Warren King, then Acting Chief Executive Officer, DMO, drew attention to the achievements gained through the formal Projects of Concern process. In 20 l 0-2011, three projects were removed from the list, two because of 'marked improvements in performance' ; and one which was cancelled. He reported that project schedule delays continued to be the greatest issue for both DMO and industry. Mr King attributed these delays to 'overly-optimistic schedules at the outset of a project, the emergence of unidentified tisks, the scale and rate of teclmical advancement, and industry capacity or quality issues'. 2

2.4 In his review of the year, Mr King referred to DMO's skilling initiatives, indicating that the organisation 'continues to achieve positive outcomes across its own workforce and in partnership with industry'. He noted that during the reporting year 'more than 2,000 DMO participants were trained in core skill areas of project management, scheduling, logistics, procurement and contract management through the DMO Institute'. 3

Defence Annual Report 2010--201 f. volume 2 Defence A1ateriel Organisation. p. 2.

2 Defence Annual Report 2010-201 I. volume 2 Defence Materiel Organisation. p. 3.

3 Defence Annual Report 2010-201 f. volume 2 Defence A,fateri el Organisation. p. 4.

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2.5 Dr Stephen Gumley retired as Chief Executive Officer (CEO) of DMO with effect from l July 2011 . The annual report acknowledged Dr Gumley's 'outstanding contribution to the organisation'. 4 It noted that as CEO and in his role as National Am1aments Director (Australia) , Dr Gumley 'was globally recognised and respected for his tireles s efforts to encourage the DMO to deliver the best outcomes for the ADF and Australia' .5

Australian War Memorial

2.6 The Australian War Memorial was established as a statutory authority under the A ustralian War M em orial Act 1980. The performance of the memorial and the accountability of its council and management are subject to the Common wealth A uthoriti es and Compani es Act 1997. The Memorial is also subject to other legislation

that bear on its operation , and is accountable to the government through the Minister for Veterans' Affairs. The Council of the Australian War M emorial is responsible for the conduct and control of the activities of the Memorial. Its numerous functions and responsibilitie s include:

" establishing the Memorial's strategic direction and vision;

" approving the Memori al's goals and key objecti ves;

" approving the annual budget and monitoring expenditure and reporting ; and

" ensuring that the Memorial has adequate financial resources to meet known and planned future resources. 6

2. 7 The Australian War Memorial's Annual Report 2010-201 I was tabled in the House of Representati ves on 13 October 2011 and in the Senate on 1 November 2011 . Among the Memorial's most significant achievements during the reporting period included the re-opening of the Second World War galleries in August 2011 following their half-life update and the redevelopment of the Hall of Valour.7 The Memorial also held a number of major ceremonies in the grounds, notably the dedication ceremony for the new National Service Memorial in the Eastern Precinct , the Anzac Day and Remembrance Day services. 8

2.8 Volume 2 of the Official History of Peacekeeping, Humanitarian and Post " Cold War Operations , Australia and the 'ne1-v ∑v~.: orld order': from peacekeeping to peace enforcem ent 1988-1991 was launched in April20l1. 9

4 Defence Annual Report 2010-2011. rolume 2 Defence /lfateriel O rganisati on. p. 4.

5 Defence Annual Report 2010-2011. J "olume 2 Defence Ma teriel O rganisation, pp 4-5.

6 .∑ lustra/ian W ar Afem orial.-1nnual Report 2010-2011. pp 3--4.

7 Australian W ar Me m orial Annual Report 2010-2011. p. 5.

8 Australi an Wa r M em orial Annual Report 2010-2011. p. 6.

9 Australian War Me m orial Annual Report 2010-2011, p. 7.

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ASC Pty Ltd

2. 9 The ASC Repmi for 201 0-2011 was tabled in the House of Representatives on 31 October 2011 and in the Senate on 1 November 2011. ASC is a proprietary company limited by shares registered under the Cmporations Act 2001 and is subject to the CAC Act. On 11 June 2004, ASC was proclaimed as a Government Business Enterprise under the CAC Act.

Chairman's Report

2.10 The Chairman, Vice Admiral Chris Ritchie AO RANR , noted that after significant changes to the business, board and management in the previous year, the current reporting period 'started with a fresh outlook on the challenges and tasks that lay ahead'. 10 He drew attention to the close collaboration and hard work between ASC, DMO and the Royal Australian Navy (RAN) which, in his view 'has enabled a significant improvement in meeting Navy's demand for submarines'. On financial matters, he reported that:

The Company achieved annual revenue of $700 million (20 10: $516 million) and profit after tax of $10.6 million (20 I 0: $4.3 million). 11

Dates of establishment

2.11 ASC Pty Ltd in their annual report described the dates of establishment, stating that:

Initially established in 1985, ASC was subsequently chosen in 1987 as the prime contractor for the design, manufacture and delivery of the Royal Australian Navy's (RAN) fleet of six Collins Class submarines. 12

Collins Class Submarine Project

2.12 ASC Pty Ltd carries out maintenance, upgrades and engineering activities for the Collins Class submarines. To date this has been under a multi-billion dollar through life support agreement with DM0. 13

2.13 According to the report, during 2009-2010 an Integrated Project Team comprising the Royal Australian Navy , DMO and ASC personnel was established as part of the Australian Submarine Program Office (ASPO) to manage jointly the Collins Class maintenance and upgrade project to meet required submarine availability and capability objectives. Maintenance activities on the submarines

included:

I 0 ASC Pty Ltd Annual Report 20I I, p. 6.

11 ASC P(v Ltd Annual Report 20I I. p. 6.

12 ASC P(v LrdAmwal Report 2011. p. 4.

13 ASC Pry Ltd Annual Report 20I I. p. 10.

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" two full cycle dockings at ASC North; and

" the completion of two intern1ediate maintenance availabilities , one certification extension docking and one intermediate docking at ASC West.

The report also noted that an emergency docking, to replace a damaged propeller, was turned around in one week at ASC West which, with the docking of the two submarines, proved 'the capability of the facility'. 14

Hobart Class Destroyer Project

2.14 ASC Pty Ltd is the Shipbuilder for the Hobart Class Air Warfare Destroyer (A WD) project. The report noted that the three AWDs will be consolidated at the company's Osborne shipyard in South Australia . 15

lt recorded that, in the last quarter

of the 201 0-2011 period, the federal government, on the Alliance's recommendation, announced the relocation of construction work that was intended to relieve the pressure on the BAE shipyard. As a consequence, ASC and Forgacs would share the construction and completion of additional blocks for the first three A WDs. A small number of blocks would be reallocated to Spain to be built under subcontract by A WD design partner Navantia. According to the report, the pace of construction 'rapidly

increased at the three shipyards across Australia' - New South Wales-based Forgacs, Victorian-based BAE Systems and ASC. The report identified the following milestones:

"

"

"

"

"

construction of all blocks for Ship 1 under ASC's responsibility conm1enced in 2010/2011 fmancial year;

construction of Ship 2 commenced in April 2011;

structural completion of the first blocks for Ship 1;

completion of the first block rotation event; and completion of the first full 'pre-fit out' activity including pipe, heating, ventilation and air conditioning and cable tray installation; and

completion of the blast and paint facility. 16

Deep Blue Tech

2.15 Deep Blue Tech (DBT)-a wholly owned subsidiary of ASC Pty Ltd-was established in 2007 as part of ASC's preparation for possible involvement in Australia's SEA 1000 Future Submarine project. During the reporting period, DBT continued to conduct research and develop concepts for the project.

17

14 ASC P(v Ltd Annual Report 2011. p. 10.

15 ASC P(v Ltd Annual Report 2011. p. 11.

16 ASC P(l Ltd Annual Report 201 I, p. 11.

17 ASC P(v Ltd Annual Report 2011. p. 13.

180

21

2.16 The report explained that in 2010-2011 Deep Blue Tech focused on exploring what the market for submarine systems and teclmology has to offer and established non disclosure agreements with potential providers. 18

Looking to the coming year, the

Chaim1an explained:

ASC will increase the staff capability of DBT during 2011 11 2 to ensure that we can build on our capacity and capability to assist the Government in any way we can when a decision is made on the acquisition of the next generation of submarines for Australia .

19

Summary

2.17 The committee finds that the ASC Pty Ltd Annual Report adequately complies with all reporting requirements for a non-statutory company.

Defence Housing Australia

2.18 Defence Housing Australia (DHA) was established as a statutory authority in 1988. In 1992 DHA became a Government Business Enterprise. The Defence Housing Australia Annual Report 2010-2011 was tabled in the Senate on 7 November 2011.20

Chairman and Managing Director's report

2.19 The Chairman and Managing Director reported that:

During 20 I 0-11, DHA provided and maintained 18,394 dwellings of which 1 7,663 were for Defence members with dependents

The middle pa11 of the year was dominated by natural disasters in Queensland with more than 800 DHA houses affected by floods in South East Queensland and by Cyclone Yasi in Not1h Queensland

DHA completed its part of the Government's Nation Building- Economic Stimulus Plan with the construction of the final 185 houses in 20 I 0-11.

In tem1s of its financial performance, DHA achieved a Net Profit after Tax of $87.3 million and a Return on Equity of 6.7% against a Corporate Plan target of 6.3%. 21

18 ASC Ptv LtdAnnual Report2011, p. 13.

19 ASC Pty Ltd Annual Report 2011. p. 7.

20 Tabled in the chamber having been presented out of session on 4 November 2011 .

21 Defence /-lousing Australia (DH A) Annual Report 2010-20 I I, pp 6-7

181

22

DHA financial pelformance

Capital structure

2.20 The Annual report recorded that DHA has $1,325.7 million in equity.

Financial Statements

2.21 The ANAO stated that the financial statements of DHA had been prepared in accordance with the Finance Minister's Orders made under the CAC Act and gave a true and fair view of the matters required by the Finance Minister's Orders.

SummaiJ'

2.22 DHA complied with the requirements of the CAC Act with respect to reporting to Ministers and Parliament ; contents of the Annual Report; audH of DHA's financial statements by the Auditor-General ; banking and investment powers of authorities ; general policies of the Australian Government; and conduct of directors and officers.

The Army Amenities Fund Company

2.23 The Am1y Amenities Fund (AAF) Company Report for 20 I 0-2011 was tabled in the Senate on 22 November 2011. The AAF Company was incorporated on 1 7 July 1987 to administer the assets of the Anny Central Amenities Fund and is subject to the Corporations Act 2001.

Fina11cia/ Statements

2.24 The ANAO reported that the financial report of the AAF Company is in accordance with the C01porations Act 2001, including giving a true and fair view of the AAF Company's fmancial position as at 30 June 2011 and complying with Australian Accounting Standards and the C01porations Regulations 2001.

Summmy

2.25 The committee fmds that the Army Amenities Companies Annual Report adequately complies with all reporting requirements.

Foreign Affairs and Trade portfolio

Australian Agency for International Development

2.26 The A1mual Report of the Australian Agency for International Development (AusAID) for the financial year 2010-2011 was tabled in the Senate on 31 October 2011.22

22 Tabled in the chamber having been presented out of session on 26 O ctober 2011.

182

23

2.27 The annual report included the Director General's review; a departmental overview; a report on performance∑ management and accountability information; fmancial statements; and other mandatory information.

Departmental Overview

2.28 The Director General of AusAID , Mr Peter Baxter, listed the highlights of the year:

On 8 July 2010, AusAID was established as an executive agency by order of the Governor-General, on the advice of the Prime Minister.

In February 2011, A us AID introduced a new organisational structure that included establishing new corporate, audit and program management functions.

The Australian Civilian Corps [was created] in October 2010 ... The first deployment was in April 2011 to the interim Haiti Reconstruction Committee. 23

Report on pe1formance

2.29 The Agency uses four types of performance review-AusAID's internal quality reporting system; Office of Development Effectiveness; Australian National Audit Office; and the Organisation for Economic Co-operation and Development (OECD) Development Assistance Committee Peer Review.

AusAID's internal quality reporting system

2.30 AusAID's internal quality reporting system involves three types of performance reports-annual performance reports at the country, regional or thematic level; quality reports on individual aid activities and independent evaluations.

Office of Development E.ffectiveness

2.31 The Office of Development Effectiveness (ODE) independently checks the robustness of AusAID's internal quality reporting system.

Australian National Audit Office

2.32 Recent performance audits by the ANAO include an assessment of AusAJD's management of the expanding aid program (2009-1 0) as well as AusAlD's support for tertiary training assistance , including scholarships (20 I 0- 11 ).

23 AusAID Annual Report 2010-2011. p. 2.

183

14

Organisation for Economic Co-operation and Development (OECD) Development Assistance Committee Peer Review

2.33 AusAID's annual report explained:

As a member of the OECD Development Assistance Committee, Australia is subject to regular peer reviews by other bilateral donors. The last OECD Development Assistance Committee Peer Review was in 2008. 2-l

2.34 AusAID's report also included reporting of results for the key performance indicators (KPis) for departmental programs.

Pac~fic Partnership .~ for De1 "e/opment

2.35 AusAID's performance information provided results of its relationships with Pacific Island countries . The report explained the improved education , health, infrastructure and economic governance. It stated:

In 20 I 0- 11 Australia helped more than 250 000 extra children attend school by helping governments to remove school fees m Papua New Guinea, Tonga, Vanuatu, Samoa and Solomon Islands ...

In Papua New Guinea, HIV testing sites increased to 266 with almost 135 000 people tested in 2010, compare to only 32 645 people accessing testing services in 2006 ...

In 2010-11. AusAID helped maintain 2152 kilometres of national roads and highways in Papua New Guinea, including a key 365 kilometre section of the Highlands Highway from the industrial centre of Lae to Goroka. 25

2.36 AusAID also reported on the performance of the Solomon Islands, Vanuatu, Samoa, Fiji, Tonga, Kiribati and Nauru.

2.37 In 2010-11, AusAID's Pacific Regional Program aid totalled $193.3 million. 26

Asia bilateral programs

2.38 In 2010-11, AusAID country program aid to Indonesia, including the Australia-Indonesia Partnership for Reconstruction and Development (AIPRD), totalled $342.1 million. 27

2.39 AusAID's annual report detailed the amount of country program aid. In 201 0-11, Au sA l D country program aid to the Philippines totalled $1 03.1 million; to East Timor, $77 million; to Vietnam, $95.2 million; to Cambodia, $45.7 million; to

24 AusAID Annual Report101 {)._20! 1. p. 16.

25 AusAJDAmwal Report10J()._]011 , pp 38-39.

26 AusAIDAmlllal Report 10]()._2011. p. 61.

27 AusAIDAmwa/ Report 201()._2011. p. 67.

184

25

Laos, $36.8 million; to Bum1a, $41.7 million; to China, $19.4 million; to Mongolia, $5.4 million∑ to South Asia, $156.4 million; of which $55.7 to million Bangladesh; $34.3 million to Sri Lanka; $19.7 million to Nepal; to Middle East and Central Asia, $227.8 million ; of which $36.8 million to Palestinian Territories ; $38.8 million to Iraq; $77.7 million to Afghanistan; $68.7 million to Pakistan ; to Latin America a total of $9.2 million; and to the Caribbean, $1 7 million. 28

Emergency, humanitarian and refugee programs

2.40 In 20 I 0-11. Au sAID's core contributions and responses to appeals for emergency, humanitarian and refugee programs totalled $353.2 million. 29

Responding to emergencies

2.41 AusAID's report on performance made reference to facts, events and trade influencing the department's performance. Key humanitarian achievements that AusAID outlined in 20 I 0-20 II included:

responding to 15 rapid-onset emergencies and conflicts in Africa, Asia, the Pacific, Latin America and the Middle East. Non-government organisations received funding to respond to 10 of these crises.

deploying 188 Australian humanitarian experts into overseas disaster zones and to suppo11 ongoing disaster preparedness activities , including nine members of the AusAID rapid response team and a 30-member civilian medical team deployed as pmt of the 20 I 0 Pakistan floods emergency response. 30

Australian Civilian Cmps

2.42 AusAID's report stated that:

The past year has seen the Civilian Corps register grow significantly, as well as the first civilian deployment to Haiti.

Key development achievements for 20 I 0- 11 including:

building the register to more than 120 civilian specialists by 30 June 2011. This is an increase of nearly l 00 members in 12 months.

deploying the first Civilian Corps register member to Haiti in April 2011 ... who is working with the Interim Haiti Reconstruction Commission as a donor liaison officer. 31

28 AusAID Amwal Report 2010-2011, pp 76- 127

29 AusAID Annual Report 2010-2011, p. 128.

30 AusA IDAmwal Report 2010-2011. p. 133.

31 AusAID Annual Report 201 0-20ll. p. 179.

185

26

Recovering from disasters- dealing with landmines

2.43 AusAID's annual report recorded that:

Australia has committed $100 million over 2010-2014 to reduce the threat and socio-economic impact of landmines, cluster munitions and other 1 . f :u exp os1ve remnants o war.∑

C01porate Governance

2.44 AusAID's annual report provided a statement of the structures and processes that the department had in place during the year to implement the principles and objectives of corporate governance. The report included the names of the senior executives and their responsibilities.

C01porate reform

2.45 AusAID stated that:

During 2010, a major review was undertaken to improve the effectiveness of the aid program's use and remuneration of advisers. A review of the use of advisers confirmed that the majority of positions are focused on high priority areas for partner governments. Of the 952 positions considered, it

was recommended that 257 be phased out within two years.

In support of the newly introduced organisational structure, AusAID commissioned a review of its broader governance arrangements, commenced an internal review of human resource governance, and revised its business planning aiTangements. The outcomes of these activities have resulted in identifying a number of enhancements to agency committee structures. 33

Internal audit

2.46 AusAID stated that:

The Audit Committee was expanded and given a higher profile through the appointment of an independent chair and an independent fmancial statements expert. As pa11 of the AusAID-wide organisation restructme in February 2011, the new position of Chief Auditor was created, and at the same time, the Perforn1ance Review and Audit Section was expanded to become a branch. 34

32 AusAID Annual Report 2010-2011, p. 181.

33 AusAID Annual Repo11 2010-2011. pp 206-207.

34 AusAID Annual Report 2010-201/. p. 209.

186

External Scrutiny

2.4 7 The annual report included the required information for external scrutiny.

Manageme11t of human resources

TflorAforce planning

2.48 AusAID stated that:

As a newly established executive agency, one of the important corporate activities undertaken in 2010 was the release of an agency-wide workforce plan. 35

Assets Management

Purchasing

27

2.49 In 201 0-11, Au sAID entered into 2763 new agreements to deliver the aid program to a value of approximately $4.06 billion. 36

Procurement contracts awarded and managed

2.50 A total of 1432 new procurement contracts were entered into during the year with a value of approximately $920 million.

Assets

2.51 AusAID held $115 million in departmental assets at 30 June 2011.

Exempt contracts

2.52 No contracts in excess of $10,000 or standing offers were exempted by the Director General from being published in AusTender.

Financial Statements

2.53 The ANAO reported that the financial statements of AusAID have been prepared in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, and give a true and fair view of the matters required by the Finance Minister's Orders including AusAID's financial position as at

30 June 2011 and of its financial performance and cash flows for the year then ended.

35 AusAID Annual Rep011 2010-2011. p. 216.

36 AusAID Annual Report 2010-1011. p. 228.

187

28

SummaiJ'

2.54 The committee finds that the AusAID Annual Report adequately complies with all reporting requirements for an agency.

Australian Trade Commission

2.55 The Australian Trade Commission's (Austrade) Annual Report for the financial year was tabled in the Senate on 31 October 2011.37

2.56 Austrade was established by the Australian Trade Commission Act 1985. It is a Prescribed Agency subject to the Financial Management and Accountabilif) Act 1997 and the Public Service Act 1999.

Changes in ministerial responsibility

2.57 The Hon Stephen Smith MP held the position of Minister for Trade until 14 September 2010. The Hon Dr Craig Emerson MP was appointed to the position for the remainder of the reporting year.

International marketing and promotion of Australian education and training

2.58 In June 2011, the Hon Justice Elliot MP , Parliamentary Secretary for Trade, announced a new brand for Australia's international education sector called Future Unlimited, part of the Australian Unlimited nation branding. It was designed to refocus attention on the benefits of Australian educational qualifications and the doors they open for international students. 38

Report 011 performance

2.59 The annual report met the requirements of perfom1ance reporting.

Assets Management

Financial statements

2.60 The ANAO stated that the fmancial statements of Austrade have been prepared in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, and give a tme and fair view of the matters required.

Sumnrmy

2.61 The committee fmds that the Austrade Annual Report adequately complies with all repmiing requirements for a FMA Act body.

37 Tabled in the chamber having been presented out of session on 28 October 2011 .

38 Australian Trade Commission Annual R eport 2010--2011. p. iv.

188

29

Export Finance and Insurance Corporation

2.62 The Export Finance and Insurance Corporation (EFIC) Annual Report 2010-2011 was tabled in the Senate on 31 October 2011.39

2.63 Section 9 of the Commonwealth Authoriti es and Companies Act 1997 (CAC Act) requires the directors of a Commonwealth authority to prepare an annual report in accordance with Schedule 1 of the CAC Act.

2.64 EFIC is a Commonwealth authority and its Board members and employees are subject to various obligations under the Export Finance and Insurance Cmporation Act 1991 and the Commonwealth Authoriti es and Companies Act 1997.

Report of Operations

2.65 EFIC entered into more than 1 00 facilities to support Australian exporters and investors in over 40 countries. EFIC stated that:

During the year, EFIC provided facilities totalling $593.1 million (2009-10: $971.3 million) and supported export contracts and overseas investments of over $3.4 billion (2009-1 0: over $5.9 billion). EFIC's profit on the Commercial Account was $30.2 million (2009-1 0: $38.3 million). 40

Financial Statements

2.66 ANAO stated that the EFIC financial statements have been prepared in accordance with the Finance Minister's Orders made under the Commonw ealth Authoriti es and Companies Act 1997, and give a true and fair view of the matters required by the Finance Minister's Orders including the Export Finance and Insurance

Corporation's financial position as at 30 June 2011 and of its financial performance and cash flows for the year then ended.

Australian Centre for International Agricultural Research

2.67 Australian Centre for International Agricultural Research's (ACIAR) govetning legislation is the Australian Centre for International Agricultural Research Act 1982. The ACIAR Annual Report 2010-2011 was tabled in the Senate on 31 October 2011.

41

Commission Chair's and Chief Executive Officer's Rel.Jiew

2.68 The Conm1ission Chair and Chief Executive Officer stated that:

39 Tabled in the chamber having been presented out of session on 28 October 2011.

40 Export Finance and Insurance Company Annual Report 20 I {}-20 II, p. 8.

41 Tabled in the chamber having been presented out of session on 27 October 2011.

189

30

A recent report by the Centre for International Economics suggests that the benefits generated ... from a suite of 120 ACIAR projects is $31.6 billion. Of this amount $29.4 billion accrues to developing countries within ACIAR's mandate, and the remainder back to Australian agriculture. This was from a total ACIAR investment of $372 million.

42

Financial Statements

2.69 The ANAO stated that the financial statements of the ACIAR have been prepared in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997 and give a true and fair view of the matters required by the Finance Minister's Orders including ACIAR's financial position as at 30 June 2011 and of its financial performance and cash flows for the year then ended.

Summmy

2.70 The committee finds that the ACIAR Annual Report adequately complies with all reporting requirements.

Other reports

2. 71 Other portfolios authorities, agencies and/or companies which had their annual reports examined by the committee, but were not otherwise commented upon in this edition, include:

" Army and Air Force Canteen Service (tabled 31 October 2011)

" Australian Strategic Policy Institute Limited (tabled 7 November 2011, received out of session 4 November 2011)

" Defence Force Remuneration Tribunal (tabled 31 October 2011)

" Defence Force Retirement and Death Benefits Authority (tabled 31 October 2011)

" Military Superannuation and Benefits Board of Trustees (tabled 31 October 2011)

" Royal Australian Air Force Veterans' Residences Trust Fund (tabled 7 February 2012, received out of session 29 November 2011)

" Repatriation Medical Authority (tabled 21 November 2011)

" Royal Australian Air Force Welfare Recreational Company (tabled 21 November 2011)

" Royal Australian Navy Central Canteens Board (24 November 2011)

" Services Trust Funds-Royal Australian Navy Relief Trust Fund, Australian Military Forces Relief Trust Fund and Royal Australian Air Force Welfare Trust Fund)-Reports for 20 I 0-11 (tabled 21 November 2011)

42 Australian Centre for International Agricultural Research Annual Report 2010-11. p. 7.

190

31

" Australian Safeguards and Non-proliferation Office (tabled 2 November 2011)

" Veterans' Review Board (tabled 31 October 2011, received out of session 25 November 2011).

Senator the Hon Ursula Stephens

Chair

191

192

Appendix 1

List of annual reports tabled during the period

1 May 2011 to 31 October 2011

Department/ Agency Date submitted to Date received by Date on letter of Date tabled in the Minister (if Minister (if transmittal (if Senate

known) known) known) (Received out of

sitting or tabled in the House of Representatives (HoR))

Defence

Anny and Air Force Canteen 15 September 2011 15 September 2011 22 September 2011 1 November 2011 Service (Frontline Defence Services) - Report for (31 October 2011

2010-11 HoR)

ASC Pry Ltd-Repon for 30 September 2011 3 October 2011 30 September 2011 I November 2011 2010-11 * (31 October 2011 *Forwarded to the Finance and H oR)

Public Administration Legislation Committee

Australian Strategic Policy 13 October 2011 13 October 2011 22 September 2011 7 November 2011 Institute Limited (ASPI)- (received

Report for 20 I 0-11 4 November 2011)

(21 November 2011 HoR)

Defence Force Remuneration 26 September 2011 26 October 2011 22 September 2011 I November 2011 Tribunal-Report for 2010-11 * (31 October 2011

HoR)

*Forwarded to the Education, Employment and Workplace Relations Legislation Committee

Defence Force Retirement and II October 2011 11 October 2011 - 1 November 2011

Death Benefits Authority DFRDB )- Report for (31 October 2011

2010-ll HoR)

Defence Housing Australia 14 October 2011 14 October 2011 15 October 201 I 7 November 20 II

(DHA)-Report for (received

2010-11 4 November 2011)

(21 November 20 II HoR)

193

34

-- Department/ Agency Date submitted to Date received by Date on letter of Date tabled in thr Minister (if Minister (if transmitta] (if Senate known) known) known) (Received out of sitting or tabled in the House of Representative s (HoR)) Department of Defence- l 7 October 201 1 1 7 October 20 l 1 - 1 November 20 I I Reports for 20 I ~I 1 (31 October 20 I I Volume !- Department ol HoR) Defence Volume 2- Defence Materiel Organisation Military Superannuation and I I October 20 l 1 11 October 201 1 7 October 201 I I November 20 I l Benelits Board of Trustees -Report for 20 I 0- 1 I (31 October 201 1 HoR) Royal Australian Air Force - - 22 November 2011 7 February 2012 Veterans' Residences Trust (received 29 Fund-Report for 20 I O-Il November 2011) (7 February 2012 HoR) Royal Australian Air Force 20 October 20 1 1 20 October 2011 25 October 20 I 1 22 ovember 201 I Welfare Recreational Company - Report for 20 I 0 I I (21 November 20 I I HoR ) Royal Australian Navy Central 7 October 201 I 7 October 2011 30 September 201 I 7 February 2012 Canteens Board (RANCCB)-Report for 201 0--11 (24 N ovember 2011 HoR) Services Trust Funds-Royal 28 October 2011 28 October 20 I 1 21 October 201 l 22 November 2011 Australian Navy RelicfTrust Fund, Au stralian Military (21 November 201 1 Forces ReliefTrust Fund and HoR) Royal Australian Air Force Welfare Trust Fund)- Reports for2010-ll AAF Company - Report for 30 October 20 I I 30 October 201 1 3 1 October 20 I 1 22 November 201 I 201~11 (22 ovember 201 1 HoR) 194

35

r-pepartm en t/Agency Date submitted to Date received by Date on letter of Date tabled in the

Minister (if Minister (if transmittal (if Senate

known) known) known) (Received out of

sitting or tabled in the House of Representatives (HoR))

Foreign Affairs

Australian Agency for 4 October 20 11 4 October 201 1 5 September 20 11 31 October 201 I

International Development (received

(AusAID)-Report for the 26 October 201 I)

period 8 July 2010 to 30 June 2011 (31 October 201 I

HoR)

Australian Centre tor 12 October 201 1 12 October 2011 - 31 October 201 I

International Agricultural (received

Research (ACIAR)-Report 27 October 20 l I)

for 2010-11

(31 October 2011 H oR)

Australian Safeguards and 1 l October 201 I 12 October 20 II I I October 20 I I 2 November 2011 Non-Proliferation Ollice-Report for 2010- 11 (2 ovem ber 20 I I

HoR)

Department of Foreign Atfairs 30 September 201 I I 4 October 20 I I 5 October 20 I l 3 I October 2011 and Trade- Report Jar (Minister for (received

2010-1 I Foreign Affairs) 25 October 20 ll)

13 October 20 I 1 (3 I October 201 I

(Minister for HoR)

Trade)

Trade

Australian Trade C ommission I 3 September 20 I J 13 September 20 I I I 3 September 201 I 3 I October 201 I (Austrade )-Report for (received

2010-11 28 October 201 I)

(3 I October 2011 HoR)

Export Finance and Insurance 30 September 2011 4 October 2011 - 3 I October 201 1

Corporation (EGIC)- Report (received

for 2010-11 28 October 20 I I)

(31 October 201 I HoR)

195

36

Department/ Agency Date submitted to Date received by Date on letter of Date tabled in the Minister (if Minister (if transmittal (if Senate

known) known) known) (Received out of

sitting or tabled in the House of Representatives (HoR))

Veterans' Affairs

Australian War M em orial- 3 1 August 20 I I 1 September 2011 I 0 August 2011 I Novembe r 2011 Report for 20 I O-Il (13 October 2011 HoR)

Repatriati on Commission, 1 1 October 20 I I II October 2011 14 October 2011 31 October 2011 Military Rehabilitati on and (received

Compensation Commission 28 October 2011)

and the Department of Veterans' Affairs - Reports for (31 October 201 1

2010--11 HoR)

Repatriation Medical 18 October 2011 I November 2011 3 October 2011 22 November 2011

Authority - Report for 2010--11 (21 November 2011

H oR)

Veterans' Review Board- 11 October 2011 13 October 2011 1 October 2011 31 October 2011

Report for 2010-11 (received

25 October 2011)

(31 October 2011 HoR)

196

The Senate

Legal and Constitutional Affairs

Legislation Committee

Annual reports (No. 1 of 2012)

March 2012

197

©Commonwealth of Australia

ISBN: 978-1-74229-573-2

This document was printed by the Senate Printing Unit, Department of the Senate, Parliament House, Canberra.

198

MEMBERS OF THE COMMITTEE

Members

Senator Patricia Crossin, Chair, ALP, NT

Senator Gary Humphries, Deputy Chair, LP, ACT

Senator Sue Boyce, LP, QLD

Senator Mark Furner, ALP, QLD

Senator Louise Pratt , ALP, W A

Senator Penny Wright, AG, SA

Secretariat

Ms Julie Dennett

Ms Margaret Cahill

Ms Hannah Dibley

Ms Elise Williamson

Suite S 1.61

Parliament House

Conmlittee Secretary

Research Officer

Adnlinistrative Officer

Administrative Officer

Telephone: (02) 6277 3560

Fax: (02) 6277 5794

CANBERRA ACT 2600 Email: legcon.sen@)aph.gov.au

111

199

200

TABLE OF CONTENTS

MEMBERS OF THE COMMITTEE ............................................................. iii

PREFACE ......................................................................................................... vii

Terms of reference .................................. .......... ........ ......... .................... ........... .... vii

Role of annual reports .......................... ..................................................... ........ .. viii

Annual reporting requirements .......... ............ ..... .............. ....... .............. ........ ..... . viii

'Apparently satisfactory' .................................................... ............ ...... .................. ix

Timeliness ....................................... ....................................................................... ix

Requirement for non-reporting bodies to report .................................................... xi

CHAPTER 1 ......................................................................................................... 1

ANNUAL REPORTS OF DEPARTMENTS ......................................................... !

Attorney-General's Department.. ............................................................................ 1

Department of Immigration and Citizenship .......................................................... 4

CHAPTER 2 ........................................................................................................ 9

ANNUAL REPORTS OF STATUTORY BODIES .............................................. 9

Attorney-General's Portfolio .............................................. ........ ............................ 9

Immigration and Citizenship Portfolio .......... ......................................................... 9

Family Court of Australia ..................................................................................... 10

Federal Court of Australia ...................................................... ............ .................. 11

Federal Magistrates Court of Australia ................................................................ 12

CHAPTER 3 ...................................................................................................... 15

REPORTS ON THE OPERATION OF ACTS AND PROGRAMS ................. 15

Report under the Surveillance Devices Act 2004 .............................. .............. ..... 15

Protection visa processing taking more than 90 days ........................................... 18

Refugee Review Tribunal reviews not completed within 90 days ...................... . 19

201

APPENDIX 1 ..................................................................................................... 21

Reports tabled during the period 1 May and 31 October 2011 and referred to the committee .......................................................................................................... 21

202

PREFACE

Terms of reference

On 29 September 2010, a resolution of the Senate allocated the following portfolios to the Senate Standing Conm1ittee on Legal and Constitutional Affairs:

" Attorney-General's portfolio; and

" Immigration and Citizenship portfolio.

This report was prepared pursuant to Standing Order 25(20) relating to the consideration of annual reports by committees. 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 repot1 which is not apparently satisfactory, and on the other annual repm1s 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 hy 31 October each year by the tenth sitting day of the following year, and on aru1Ual 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 perfonnance of the bodies fumishing 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.

203

Role of annual reports

Annual reports place a great deal of information about government departments and agencies on the public record. Accordingly, the tabling of annual reports is an important element of accountability to Parliament, as the information provided in annual reports assists in the effective examination of the performance of departments and agencies, and the administration of government programs.

Annual reporting requirements

Standing Order 25(20)(f) requires that committees 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.

Pursuant to subsections 63(2) and 70(2) of the Public Service Act 1999, departments of state and executive agencies must prepare annual reports in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports). As a matter of policy, the Requirements

for Annual Reports also apply to prescribed agencies under section 5 of the Financial Management and Accountability Act 1997 (FMA Act).1

The 2010-11 annual reports are prepared in accordance with the Requirements for Annual Reports issued on 8 July 2011. Amendments to the latest issue of the Requirements for Annual Reports are:

" Commonwealth Disability Strategy - the requirement to report on the implementation of the Commonwealth Disability Strategy in annual reports has been discontinued.

" Social inclusion reporting - accommodating social inclusion measurement and reporting strategies.

" Freedom of Information - accommodating recent maJor refonns to Freedom of Information legislation. 2

Orders made by the Minister under section 48 of the Commonwealth Authorities and Companies Act 1997 (CAC Act) set out guidelines for the annual reports of Commonwealth authorities. The content of annual reports of Commonwealth companies is based on the reporting requirements under the Cmporations Act 2001, in accordance with section 36 of the CAC Act.

Statutory authorities must also report in accordance with their establishing legislation.

Depm1ment of the Prime Minister and Cabinet, Requirements for Annual Reports, 8 July 2011, Part 1, subsection 3(1 ).

2 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 8 July 2011, p. I.

Vlll

204

Guidelines for the mmual reports of non-statutory bodies are set out in the Government Response to reconm1endations of the then Senate Standing Committee on Finance and Government Operations, in its report entitled Reporting Requirements for the Annual Reports of Non-StatutOI) l Bodies. The Government Response was

incorporated into the Senate Hansard of 8 December 1987.3

'Apparently satisfactory'

Under the terms of Standing Order 25(20)(a), the committee is required to report to the Senate whether reports are 'apparently satisfactory'. In making this assessment, the committee considers such aspects as compliance with relevant reporting guidelines.

The reports examined by the committee in this report were found to be of a satisfactory standard, adequately describing the functions , activities, performance and financial positions of the departments and agencies. The committee finds all submitted annual reports to be 'apparently satisfactory'.

Timeliness

Under Standing Order 25(20)( c), the committee must also report to the Senate on any lateness in the presentation of annual reports.

In accordance with the Requirements for Annual Reports, agencies are required to present:

A copy of the annual report ... to each House of the Parliament on or before 3 1 October in the year in which the report is given. If Senate Estimates is scheduled to occur prior to 31 October, it is best practice for annual reports to be tabled prior to those hearings.

Where an agency's own legislation provides a timeframe for its annual report , for example "within six months'' or "as soon as practicable after 3 0 June in each year'', that timeframe applies. 4

If a department or agency is unable to meet this deadline, the secretary or agency head is to advise the responsible Minister of the reasons for the delay and the expected tabling date. The responsible Minister is to table this explanation in the Parliament. 5

3 Official Senate Han sard. 8 December 1987. pp 2643-2645.

4 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports, 8 July 2011, Part 1, section 4.

5 DepaJ1ment of the Prime Minister and Cabinet, Guidelinesf or the Presentation ofGovemm ent Docum ents to the Parliament. CanbeJTa, June 2010, p. 5.

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Subsection 9( 1) of the CAC Act requires the director of a Commonwealth authority to: (a) prepare an annual report in accordance with Schedule 1 for each financial year; and

(b) give it to the responsible Minister by the deadline for the financial year for presentation to the Parliament.

(2) The deadline is: (a) the 15th day of the 4th month after the end of the financial year; or (b) the end of such fUI1her period granted under subsection 34C(5) of the Acrs !nterprerarion Act 19() 7.

Under section 36 of the CAC Act:

(1) A Commonwealth company must give the responsible Minister: (a) a copy of the company's financial rep011, directors' report and auditor's report that the company is required by the Corporations Act 2001 to have for the financial year (or would be required by that Act to have if the company were a public company); and (b) any additional report under subsection (2); and (c) in the case of a wholly-owned Commonwealth company- any additional information or rep01i required by the Finance Minister's Orders.

(lA) The Commonwealth company must give the reports and information by: (a) if the company is required by the C01porations Act 2001 to hold an annual general meeting-the earlier of the following:

(i) 21 days before the next annual general meeting after the end of the financial year; (ii) 4 months after the end of the financial year; and (b) in any other case--4 months after the end of the financial year; or the end of such further period granted under subsection 34C(5) of the Acts Interpretation Act 1901.

In the absence of any specific provision, the Acts Interpretation Act 1901 requires bodies to present annual reports to ministers within 6 months after the end of the period reported upon (subsection 34C(2)), and ministers must table reports within 15 sitting days after receipt.

A table listing the annual reports of departments and agencies tabled in the Senate (or presented out of session to the President of the Senate) between 1 May 2011 and 31 October 2011, and which have been referred to the committee for examination, can

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be found at Appendix 1. 6 Also included in this table, is the date each report was tabled in the House of Representatives.

The annual reports of bodies examined in this report met the reporting deadline of 31 October 2011. A number of agencies just missed the deadline in the Senate, tabling their reports on 1 November 2011.7 Accordingly, the reports of the following agencies will be examined in the committee's second report for 2012:

" Australian Commission for Law Enforcement Integrity;

" Australian Crime Commission;

" Australian Institute of Criminology and Criminology Research Council;

" Australian Transaction Reports and Analysis Centre; and

" Commonwealth Director of Public Prosecutions.

In accordance with best practice, as outlined in the Requirements for Annual Reports, the committee encourages bodies to table annual reports before the supplementary budget estimates hearings in October each year. 8 The committee acknowledges that most reports were available prior to the committee's supplementary budget estimates hearings on 17 and 18 October 2011.

9

Requirement for non-reporting bodies to report

In accordance with Standing Order 25(21 )(h), the committee is required to report on bodies which do not present an annual report to the Senate and which should present such a report.

On this occasion, the conm1ittee makes no recommendation for any organisation not presenting an annual report to do so.

6 This table also includes the repmis on the operation of acts or programs which have been referTed to the committee.

7 The committee notes, however, that these repot1s were tabled in the House of Representatives on 13 October 2011.

8 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 8 July 201 L Part 1, Section 4.

9 See Appendix 1 for those bodies which tabled or presented their reports prior to 17 and 18 October 2011.

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208

CHAPTER!

ANNUAL REPORTS OF DEPARTMENTS

1.1 The annual reports for the financial year 20 10-11 of the following departments were referred to the committee for examination and report:

" Attorney-General's Department

" Department oflmmigration and Citizenship

Attorney-General's Department

Tabling of report

1.2 The 2010-11 annual report was presented out of session on 14 October 2011 (and tabled in the Senate on 31 October 2011 ). The department's early presentation of the report made it available to Senators for the Supplemental)' Budget Estimates 2011-12 hearings.

Secretwy's review

1.3 The committee notes some of the achievements for the year across the department, as outlined by the Secretaty in his review of 2010-11 , including:

" coordinating a whole-of-government approach to the response and recovery effm1s in response to nationwide natural disasters ;

" supporting the Australian Government's response to a number of international natural disasters;

" leading the Australian component of the cyber security exercise called Cyber Storm III, sponsored by the United States Department of Homeland Security ;

" developing the multi-agency Commonwealth Organised Crime Response Plan;

" continuing to implement recommendations from the Access to Justice Taskforce; and

" preparing a national action plan on human rights as part of the implementation of the Human Rights Framework. 1

Pe1jormance reporting

1.4 The report's perfom1ance information addresses the key perfom1ance indicators (KPis) as listed in the Portfolio Budget Statement for 2010-11. The

Attorney-General' s D epartment Annual Report 2010-11, pp 2-3.

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committee notes that all KPis for the depattment were assessed as being achieved, substantially achieved or partially achieved, with a brief supporting comment following each result.

1.5 The report presents a 'clear read' from the Portfolio Budget Statement to the annual report in relation to reporting on performance. The committee notes that no KPis for the department provide a quantitative measure for performance or targets. The committee further notes that the department has previously included quantitative measures for some KPis and has identified targets , and has presented results in response to those KPis in the annual report. 2

1.6 The committee acknowledges that the development of quantitative KPis for departmental programs involving policy development and advice may pose a challenge, and that qualitative KPis may be more appropriate in some areas. However, the inclusion of quantitative KPis for some program areas would assist in demonstrating the effective achievement of a program objective.

1. 7 For example, the KPI for Program 1.3 Justice Services was '[I)mprovement in access to education, information, advice and support services for disadvantaged Australians and conm1unities'. The KPI was reported as being achieved with the supporting comment that '[C)ommunity legal centres have continued to provide legal assistance and advice to disadvantaged Australians on a wide range of issues'. 3 Although the supporting discussion provided support for the claim of this KPI being achieved, quantitative measures, such as centre/client numbers, would enhance the demonstration of this KPI and provide a basis for comparing results over time.

1.8 According to the Department of Finance and Deregulation, KPis, within the outcomes and programs reporting framework, 'should measure the effectiveness and efficiency of the program and clearly measure the program's success, particularly against the intended result of the relevant outcome statement.' 4

1.9 In line with the recent report of the Australian National Audit Office (ANAO), Development and implementation of key pe,formance indicators to support the outcomes and programs fi'amework, 5 the committee encourages agencies, where suitable, to develop KPis that have an appropriate emphasis on quantitative and

2 See. for example, Attorney-General's Pm1folio, Portfolio Budget Statement 2008-09.

3 Attorney-General' s Department Annual Report 20 I 0-11, p. 77.

4 Department of Finance and Deregulation , PeTformance lliformation and Indicators, October 20 I 0, p. 8.

5 Australian National Audit Office, Performance Audit Report No. 5 2011-12, D evelopment and implementation of key pe1jormance indicators to support the outcom es and programs fi-arneJVork

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measureable indicators, including targets. 6 This would clearly demonstrate the effectiveness of a program in achieving its objectives in support of the relevant outcome. The ANAO report found that:

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 perfmmance levels to be attained at a future date. By enabling a more direct assessment of perfonnance, the greater use of targets would assist to clarify and simplify the process of performance monitoring. 7

Social inclusion outcomes

1.1 0 As noted in the preface of this report, under the revised Requirements for Annual Reports issued in July 2011, it is now a mandatory requirement for agencies whose activities impact on social inclusion outcomes, to provide information about relevant programs and progress in relation to social inclusion strategic change indicators. 8

1.11 The department had previously provided an account of progress toward its social justice agenda in recent reports. The 2010-11 report presents a summary of the department's contribution to the whole-of-government social inclusion agenda which is described as aiming to give every Australian the help they need to access the support and opportunities that Australian society has to offer. In this regard, the report notes that the Attorney-General's Department has responsibility for this agenda from the law and justice perspective.

9

1.12 Some areas of the department's work contributing to the social inclusion agenda which are highlighted in the report include legal assistance , Indigenous community safety and law and justice matters, and the protection and promotion of human rights . 10 While the department is not one of the main Commonwealth social

6 Australian National Audit Office, Performance Audit Report No.5 2011-12, Development a11d implem entation of ke,v pe1jormance indicators ro support the outcomes and programs framework, see Recommendation o. 1, p. 28.

7 Au stralian National Audit Office, Performance Audit Report o. 5 2011-12, D evelopment and implem emation of ke,v pe1jormance indicators to support the outcom es and programs .framework, p. 53.

8 See Requirements for Annual Reports, July 2011, subsection 11(4).

9 Attorney-General's D epartment Annual Report 2010-11, p. 180.

10 Attomey-General's D epartment Annual Report 2010-11, pp 180-181.

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policy agencies responsible for delivering the identified strategic change indicators, 11 the report provides useful background on its contribution.

Financial pelformance

1.13 The department reported an operating surplus of $0.367 million for 2010-11. This compares with an operating deficit of $0.244 million for the previous year. 12

1.14 Departmental income and expenses both increased slightly during the year-0.4 per cent and 0.6 per cent respectively-primarily reflecting additional funding from budget measures. 13

1.15 The department's mix of administered expenses changed significantly during the year as a result of amendments to the Administrative Arrangement Orders on 14 September and 14 October 2010. These amendments related to the transfer of responsibility for the Australian Territories from the department to the Department of Regional Australia, Regional Development and Local Government, and the department's assumption of responsibility for natural recovery policy and the Australian Government D isaster Recovery Payment from the Department of Families, Housing, Community Services and Indigenous Affairs. 14

Conclusion

1.16 The report closely complies with the Requirements for Annual Reports and includes most 'suggested' items in addition to mandatoty requirements. The committee considers the report to be 'apparently satisfactory'.

Department of Immigration and Citizenship

Tabling of report

1.17 The department presented the annual report for 2010-11 on 14 October 2011 (and tabled on 31 October 2011 ), which made it available to the committee for examination during the Supplementary Budget Estimates hearings on 17 and 18 October 2011.

11 The Department of Education, Employment and Workplace Relations, the Department of Families, Housing, Community Services and Lndigenous Affairs, the Department of Human Services. the Department of Health and Ageing, and the Department of Broadband, Communication and the Digital Economy are identified as the main bodies contributing to the strategic change indicators under the Government's Framework of Indicators for Social Inclusion .

12 Attorne\∑ -Generafls D epartment Annual Report 2010-11, p. 163.

13 Attorney-General's D epartment Annual Report 2010-11, p. 163.

14 A ttomey-General's D epartment Annual Report 2010-11, p. 163.

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Secret my's review

1.18 The Secretary's review of 2010-11 highlighted major initiatives and challenges for the department during the year. For example, the Secretary noted the launch of the government's new policy TI1e People of Australia - Austra/;a's Multicultural Policy, a key initiative of which is the establishment of a new independent body, the Australian Multicultural Council, to advise government on multicultural affairs. 15

1.19 The Secretary also highlighted reforms to the Skilled Migration Program to make it more responsive to skilled labour demands. In particular, a new Skilled Occupation List was introduced on 1 July 2010, which included 183 high value occupations based on the advice of Skills Australia. 16

1.20 The Secretary reported that irregular maritime arrivals continue to be a challenge for the department, and noted that 'serious issues' in relation to immigration detention centres are of concern to the department. 17

1.21 The Secretary provided some brief contextual background on the worldwide situation in relation to asylum seekers, noting that Australia receives about two per cent of the global total of applications for asylum each year. He further noted that:

These new applications are only a small proportion of the total number of people displaced each year by war, civil unrest and persecution. Applications for asylum in developed nations peaked in 2002, then fell each year to 2006, before again beginning to rise. This pattern matches the experience of Australia over the last decade. 18

1.22 Some other areas of challenge and achievement highlighted by the Secretary included the granting of citizenship to over 100,000 people; children's issues, including an audit of the impact on children of immigration legislation , policies and programs; and agreement to the Regional Cooperation Framework.

19

Social inclusions outcomes

1.23 The report provides a brief description of the department's contribution to the social inclusion agenda. The areas covered include the provision of support services to assist in the settlement of new arrivals, including refugees; the contribution to a cohesive and harmonious society through the Diversity and Social Cohesion Program; and inclusion of culturally and linguistically diverse communities. The department

15 D epartment ofimmigration and Citizenship Annual Report 2010-11, p. 8.

16 D epartment of Immigration and Citi:::enship Annual Report 2010-11, p. 6.

17 D epartment of immigration and Citizenship Ann11a f Report 2010-11. p. 5.

18 D epartment of Immigration and Citizenship Annual Report 2010-11. p. 12.

19 D epartment of immigration and Citizenship Ann11af Report 2010-11, pp 4-5.

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also contributes to government programs related to homelessness and the not-for " '0

profit sector.-Pe1Jormance repmting

1.24 The department's performance infom1ation in relation to deliverables and KPis is well presented and provides a 'clear read' from the Portfolio Budget Statement 2010-11. The tabular presentation of performance infmmation for quantitative K.Pis, which includes a target and actual results , was helpful and accessible. The committee also found the detailed statistics and supporting discussion on various migration programs and visa categories informative.

1.25 An area of interest to the committee was the performance report dealing with Outcome 4, which includes the management of IMAs. The performance report noted that there was a 41 per cent increase in the total number of IMAs in immigration detention from the previous year and a 1 00 per cent increase in the number of cases being managed by case managers at 30 June 2011 compared to the previous year. 21

1.26 The high number of IMAs was described as a continuing challenge in 2010-11, ' ... resulting in significant pressure on the case management services and acconm1odation facilities across the detention network'. 22

1.27 An area of concern for the committee was the performance result for the processing of onshore protection applications decided within 90 days, in accordance with section 65A oftheMigration Act 1958. The actual result of60.7% is well below the target (and legislative requirement) of 100%. It is also below the actual result for the previous two years: 71.8% for 2009-10, and 77% for 2008-09.23

1.28 It was revealed that 72.3% of protection visa decisions which took more than 90 days were caused by departmental-related delays, such as the complexity of certain cases requiring additional investigation and resources. This has increased considerably from 41% caused by departmental-related delays in 2009-10.24 Other factors impacting on the delay in processing onshore protection applications include client " related, external agency and third party related reasons.25

1.29 Another matter of ongoing interest to the committee is the Temporary Business (Long Stay) (subclass 457) visa program. It was reported that 2010-11 was

20 D epartment of Immigration and Citizenship Annual R eport 2010-11, p. 317.

21 D epartment of Immigration and Citi:: cnship Annual Report 2010-11, pp 155 and 200.

22 D epartment of Immigration and Citizenship Annual Report 2010-11, p. 155.

23 D epartment of Immigration and Citi:: enship Annual Report 2010-11, p. 106.

24 D epartment of Immigration and Citizenship Annual Report 2010-11, p. 122 .

25 See Chapter 3 of this report for the committee's examination of the Department oflmmigration and Citizenship's recently tabled four monthly reports on protection visa processing.

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the strongest year on record for the subclass 457 visa program, with an increase of 32.6 per cent for visas granted from 2009-10 figures. 26 The committee was pleased to note that the department exceeded its perfom1ance target of 75 per cent of subclass 457 visa applications being processed within service standards , achieving a result of 85.6 per cent. 27

Financial pe1jormance

1.30 The department's financial performance was described as strong, despite challenges imposed by increased activity and complex operational demands. 28

1.31 The Department reported an operating deficit of $63.1 million for 2010-11. This compares to an operating surplus of $5.5 million in 2009-10. The operating deficit was attributed to a change in government appropriation funding whereby depreciation and amortisation expenses are no longer funded on an annual basis. It was pointed out that, if the department's depreciation and amortisation expenses of $77.9 million for the year were funded, the fmancial result for 2010-11 would have been an operating surplus of $14.8 million. 29 The main contributing factors for the operating result were:

" a strong focus on performance and associated financial management;

" efficiencies achieved throughout the financial year, including reductions in corporate overhead expenses; and

" a continued focus on improving business planning and monthly financial reporting activities. 30

1.32 The committee notes that administered expenses were $1 ,100 million, $65 million higher than the estimate of $1,03 5 million provided at 2010-11 Additional Estimates. This was mainly attributed to increased expenses for Program 4.3 -Offshore Asylum Seeker Management. 31

Staff awards

1.33 The committee congratulates the Secretary, Mr Andrew Metcalfe, for being recognised as the Federal Government Leader of the Year in the 2010 Leadership in Government A wards. The Deputy Secretary, Dr Wendy Southern, was also recognised at this event and was presented with the Outstanding Contribution A ward for her work

26 D epartment of Immigration and Citizenship Annual Report 2010-11. p. 68.

27 D epartment of Immigration and Ciri~enship Annual Report 2010-11, p. 48.

28 D epartment oflmmigration and Citizenship Annual Report 2010-11, p. 32.

29 D epartment of Immigration and Citizenship Annual Report 2010-11, p. 32.

30 D epartment oflmmiaration and Citi~enship Annual Report 2010-11, p. 32.

31 D epartment of Immigration and Citizenship Annual Report 1010-11, p. 33.

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in overseeing public service reform, and parliamentary and electoral affairs , in her previous role at the Department of the Prime Minister and Cabinet. 32

Conclusion

1.34 The annual report is a comprehensive document which appears to give full coverage of operations during the year and which closely follows the Requirements for Annual Reports. The committee considers the report to be 'apparently satisfactory'.

32 D epartment of Immigration and Citizenship Annual Report 20 I 0-11, p. 257.

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CHAPTER2

ANNUAL REPORTS OF STATUTORY BODIES

2.1 The annual reports of the following statutory bodies for the financial year 2010-11 were referred to the committee for examination and report during the period 1 May to 31 October 2011:

Attorney-General's Portfolio

"

"

"

"

"

"

"

"

"

"

"

"

"

"

"

"

Administrative Review Council

Administrative Appeals Tribunal

Australian Security Intelligence Organisation

Australian Customs and Border Protection Service

Australian Federal Police

Australian Government Solicitor

Australian Law Refonn Commission

Classification Board and Classification Review Board

CrimTrac Agency

Family Law Council

Family Court of Australia

Federal Court of Australia

Federal Magistrates Court of Australia

Insolvency and Trustee Service Australia

National Native Title Tribunal

Office of Parliamentary Counsel

Immigration and Citizenship Portfolio

" Migration Review Tribunal and Refugee Review Tribunal

" Office of the Migration Agents Registration Authority (Sub-program 1.1.3)

2.2 The committee has determined to consider , but not report on, the annual report of the Australian Federal Police, as the Parliamentary Joint Committee on Law Enforcement has specific responsibility for overseeing that agency.

2.3 On this occasion, the committee has decided to examine in more detail the reports of the Family Court of Australia, the Federal Court of Australia and the Federal Magistrates Court of Australia.

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Family Court of Australia

2.4 The annual report of the Family Court of Australia was presented out of session on 14 October 2011 and was therefore available to the committee for the Supplementary Budget Estimates hearings on 1 7 and 18 October 2011.

2.5 The Chief Justice outlined the expansion of the range of measures of court work to assist in monitoring performance and to assess whether objectives are being met. Statistics will now be kept on areas such as clearance rates of matters that come to the court, the number of times that parties attend court, the number of matters that settle, and the timeliness of hearings and delivery of judgements. It was further noted that comparable data is produced for the Federal Magistrates Court, and the expansion of these measures to the Family Court will enable a more coordinated approach to

" 1

managmg resources.

2.6 The Chief Justice also commented on budgetary pressures and the impact of reduced funding as a result of the increase in the efficiency dividend rate in 2011-12 ( 1.5 per cent, as opposed to 1.25 percent in 2010-11 ). She advised that the court will be operating with less in 2011-12, resulting in a reduction in staff numbers which may affect services. 2

2. 7 The committee was impressed with the court's presentation of performance information. The report on court perfom1ance for deliverables and KPis provided a 'clear read' from the PBS. Performance information was presented in tabular format with the target and results for 2010-11 (and for 2009-10 for comparative purposes). The last column in the perfom1ance tables contained a tick/cross, providing a quick reference to indicate whether the target for the current year had been achieved. 3

2.8 Four of the eight KPis for the court were not achieved in 2010-11, and the report discusses the reasons why the court failed to achieve these targets. 4 Three of the four KPI targets which were not achieved were, however, close to the target.

2.9 The report on court performance also included detailed statistics on the work of the court for the year under review, along with figures from the previous four years to provide trend information.

2.1 0 The report closely follows the Requirements for Annual Reports and provides a thorough account of the perfom1ance of the Family Court of Australia for the 201 O " Il reporting year. A number of suggested items from the Requirements for Annual Reports were included, in addition to the mandatory items. The committee considers the report to be 'apparently satisfactory'.

Fami(v Co111∑t of Australia Annual Report 2010-11, p. 13.

2 Fami!yCourtofAustraliaAnnua! Report 2010-11, p.l4.

3 Family Court of Australia Annual Report 2010-1 I, pp 48 and 77.

4 Family Court of Australia Annual Report 2010-11, pp 45-46.

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2.11 The committee also notes that the Chief Executive Officer of the Family Court of Australia and the Acting Chief Executive Officer of the Federal Magistrates Court of Australia has also prepared a separate report detailing the combined administration of the Family Court and Federal Magistrates Court. 5

Federal Court of Australia

2.12 The report of the Federal Court of Australia was presented out of session on 14 October 2011 and was available to the conm1ittee for the Supplementary Budget Estimates 20 11-12 hearings on 17 and 18 October 2011.

2.13 The report followed up on the practice initiatives that have been implemented in response to the Native Title Amendment Act 2009 (the Act) to ensure, where possible , that native title cases are resolved more easily and delivered in a more timely, effective and efficient fashion. 6

2.14 Native title cases are prioritised across Australia, on a regional basis and within the area covered by each native title representative body. A priority list of cases was published on the court's website on 1 July 2010 and is regularly updated to reflect changing priorities and finalisation of cases.

7

2.15 The Act gives the court responsibility for managing all aspects of native title proceedings including referral of a matter to mediation before a person or body other than the National Native Title Tribunal or a registrar of the court. A list of mediators has been finalised and is available on the court's website. The report advised that three matters have been identified as suitable for referral to private mediators. 8

2.16 Other significant developments for the court during the reporting year included the first major revision of the court's rules since they were promulgated on 1 August 1979, and substantial change to the court's website in relation to Freedom of Information content, following amendments to the Freedom o.fh?formation Act 1982.

9

2.1 7 The report addressed both KPis listed in the Portfolio Budget Statement, indicating that both targets were met for 2010-11.10 While the committee commends the court for achieving its performance targets, clearer identification of performance results against KPI targets within the report would assist the reader. For example, the result for the KPI concerning the reduction in the number of matters over 18 months

5 Fami~v Court o.f Australia and Federal Magistrates Courts of Australia Chief Executive Officer's Rep011 2010-ll.

6 F ederal Co1111 of Australia Annual Report 2010-11. p. 12.

7 F ederal Co1111 of Australia Annual Report 2010-I I, pp 12-13.

8 Federal Court of Australia Annual Report 2010-1 I, pp 13-14.

9 Federal Court of Australia Annual Report 2010-11, pp 14-15.

10 F ederal Court of Australia Annual Report 201 0-I 1, pp 16 and 28.

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old was presented within the section on 'The Work of the Court in 201 0-11'11 but did not specifically identify tills result as exceeding the KPI performance target of 20.5 per cent.

2.18 The committee notes that the workload of the court has increased significantly during the reporting year. The total number of filings (including appeals) increased by 36 per cent, and filings in the court's original jurisdiction (excluding appeals) increased by 46 per cent. The report further notes that the majority of the increases involved the court's corporations workload, which increased by 70 per cent. 12

2.19 The court had an operatin g deficit of $8.367 million for 2010-11. It was noted that this was primarily due to the revaluation and write-off of non-current assets and that, leaving these technical accounting processes aside, the loss would have been limited to approximately $250,000.13 The court nevertheless noted that it:

... is forecasting ongoing operating losses over the next three financial years. Whilst the Court is actively examining measures to bridge the forecast funding shortfall , the extent of savings previously reali sed in past years is now limiting further options. An independent consultant has been commissioned to conduct an organisational health check to ensure that all available strate gies and savings measures are being considered. 14

2.20 The conm1ittee will continue to monitor the court's financial position .

2.21 The annual report adheres to the Requirements for Annual Reports and the conm1ittee considers it to be 'apparently satisfactory'.

Federal Magistrates Court of Australia

2.22 The annual report of the Federal Magistrates Court of Australia was presented in the Senate on 17 October 201 1 and was therefore available to the committee for examination during the Supplementary Budget Estimates hearings.

2.23 The Chief Federal Magistrate in his review of the year noted that the breakdown of the work of the court is 93 per cent family law and seven per cent general federal law. He reported an increase in the percentage of national filings (excluding Western Australia) in the family law jurisdiction handled by the court from the previous year, with 86 per cent in 2010-11. He also reported an increase in the caseload in several jurisdictions for general federal law, particularly in relation to industrial law and copyright law.15

II Federal Co urt a/Australi a Annual Report 2010-11, p. 28.

12 Federal Court of A ustralia Annual Report 2010-11, p. 15.

13 Federal Co urt of A ustralia Annual Report 2010-11, p. 17.

14 Federal Court of A ustralia Annual Rep0112010-11, p. 17.

15 Federal M agistrates Co urt of Australia Annual Report 2010-11. p. 1.

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2.24 Performance information for the court was well presented. The court achieved two of the three KPI targets. The court failed to meet the time goal to complete 90 per cent of all applications filed within six months, instead achieving 84 per cent. The committee welcomed the discussion on strategies developed to meet this KPI in the

future. Such strategies include:

" the further development of operational reports enabling the Court to gain a better understanding of its workload;

" the ongoing review of the Comt"s oldest active cases with a view to ensuring an understanding of the reasons for delay and deciding how older cases may be dealt with more quickly; and

" Case Management Federal Magistrates collecti vely working on improving the performance of the Court on a national and regional basis. 16

2.25 The court met the other two performance targets of less than one per cent of matters litigated or divorces processed being the subject of a complaint (0.13 per cent achieved), and 60 per cent of matters resolved before trial (71 per cent achieved). 17

2.26 The court reported an operating loss of $3.960 million for 2010-11, which compares with a $2.201 million loss in 2009-10. The Chief Federal Magistrate reported that the court budget was a principal topic of discussion at a meeting of the combined Policy Advisory Committees of the Federal Magistrates Court and Family Court in April 2011. He further noted his concerns regarding court resources:

Resources have been and will continue to be directed towards ensuring that the Court maintains an appropriate balance between timeliness and providing high quality decisions . There remains, however, a significant possibility that innovation in case management and the energy of members of the Court will not provide a sustainable solution to the issue of the Court's workload, and that its ability to meet existing protocols will diminish unless additional resources are provided. 18

2.27 The Chief Federal Magistrate also remarked on the challenge the Federal Magistrates Court faces with regard to the restructure of the federal courts:

While the Australian Go vernment announced that it would retain the Federal Magistrates Court to hear general federal law matters (in May 201 0) unce1tainty still remains, making long tenn planning for the Court difficult.

19

2.28 The committee's examination of the report was assisted with the inclusion of the List of Requirements in Part 7 of the report. The report complies with the

16 Federal Ma gistrates Court ofA ustralia Annual Report 2010-11, p. 26.

17 Federal Ma gistrat es Court of Australia Annual Report 2010-11, pp 25-26.

18 Federal M agistrates Court of Australia Annual Report 2010-11, p. 1.

19 Federal Ma gistrates Court of A ustralia Annual Report 2010-11, p. 1.

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Requirements for Annual Reports and the committee considers the report to be 'apparently satisfactory'.

222

CHAPTER3

REPORTS ON THE OPERATION OF ACTS AND

PROGRAMS

3.1 Standing Order 25(20) does not provide for the consideration of reports on the implementation or operation of acts or programs. The committee is not therefore required to include them in its repo11 on the examination of annual reports. However, as on previous occasions, the conunittee has chosen to examine the following repor1s:

" Report to the Attorney-General on the results of inspection of surveillance device records for 2008 under section 55 of the Surveillance D evices Act 2004, March 2011 (published by the Commonwealth Ombudsman);

" Report pursuant to section 91 Y of the Migration Act on protection visa processing taking more than 90 days for the period 1 November 2010 to 28 February 2011 (published by the Department of Inunigration and Citizenship);

" Report pursuant to section 91 Y of the Migration Act on protection visa processing taking more than 90 days for the period 1 March 2011 to 30 June 2011 (published by the Department of Immigration and Citizenship);

" Report pursuant to section 440A of the Migration Act on the conduct of Refugee Review Tribunal reviews not completed within 90 days for the period 1 November 2010 to 28 February 2011 (published by the Refugee Review Tribunal); and

" Report pursuant to section 440A of the Migration Act on the conduct of Refugee Review Tribunal reviews not completed within 90 days for the period 1 March 2011 to 30 June 20 11 (published by the Refugee Review Tribunal).

Report under the Surveillance Devices Act 2004

3.2 The Surveillanc e D evices Act 2004 (the Act) regulates the use of surveillance devices by law enforcement agencies. 1 Subsection 55(1) of the Act requires the Commonwealth Ombudsman to inspect the records of each law enforcement agency to determine the extent of compliance with the Act by the agency and its law

Under subsection 6(1), the term 'law enforcement agency' includes the Australian Crime Commission, the Australian Federal Police. the Australian Commission for Law Enforcement Integrity. and specified state and territory law enforcement agencies. If any of these agencies utili se the provision s of the Act, the Ombud sman is required to inspect records relating to that

use. See further , Commonwea lth Ombudsman , Report to the Attomev-Genera! on the results of inspection of records under s55 of the Surveillanc e D evices Act 1004, March 2011 , p. 1.

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enforcement officers . Under section 61 of the Act, the Ombudsman is required to report to the Minister at six-monthly intervals on the results of each inspection. 2

3.3 The inspections conducted by the Ombudsman were limited to those warrants and authorisations that had expired or been revoked during the inspection periods. 3

3.4 Tlus report relates to inspections of records for the following agencies for the time period indicated:

" Austrahan Crime Commission (ACC) (Records from 1 July 2009 to 31 December 2009); and

" Australian Federal Police (AFP) (Records from 1 July 2009 to

31 December 2009).

3.5 The committee was pleased to note that the Ombudsman did not identify any issues in relation to the ACC during the reporting period and assessed the agency as compliant with the Act.4

3.6 The Ombudsman found that the AFP was compliant with the Act during the reporting period; however, identified the following issues for attention:

" obtaining new warrants to continue use of surveillance devices for a person, premises or object, rather than extending the original warrant;

" eligibility requirements to apply for an extension to a wanant; and

" access to records which confirm lawful access to premises under 'person warrants'. 5

3.7 The Ombudsman made reconm1endations in relation to the first and third issues listed above, which aim to improve AFP compliance with the Act.

3.8 The AFP responded to the Ombudsman's report during the

Budget Estimates 2011-12 hearings when it appeared before the committee:

Senator HUMPHRIES: ... The second issue 1 want to raise briefly was the report that came down earlier this week by the Commonwealth Ombudsman into possible shortcomings in compliance anangements with covert surveillance. The Ombudsman makes the point that there is a number of improperly extended surveillance operations and installed surveillance

2 Report to the Attorney-Genera l on the results of inspections of records under s55 of the Survei!!ance D evices Act 2004. March 2011 , p. 1.

3 Commonwealth Ombud sman , Report to the Attorney-General on the re ∑ ults of inspections of records under s 55 of the Surveillance D evices Act 2004. March 2011, p. I.

4 Commonwealth Ombud sman , Report to the Attorney-General on the results of inspections of records under s 55 of the Surveillance D evices Act 2004. March 2011, p. 4.

5 Common wealth Ombudsman , Report to the Attornev-General on the results o.f inspections of records under s 55 of the Surveillan ce D el'i ces Act 2004, March 2011, p. 2.

224

without adequate justification. He conm1ents that there is a perception by operational police that keeping up with the paper trail was burdensome. Can you outline to the committee what approximately is the process used to begin, say, the use of a surveillance device and how you would describe that in tem1s of the burden that is placed on an officer or officers beginning such an investigation?

Mr Negus: The issues around compliance are necessarily complex because they are quite intrusive powers and there are a range of different checks and balances in place our officers must go through. Sometimes at the lower level of the organisation-and we do our best to explain these things-they might not understand necessarily the rationale for all of those complexities .

. . . Again, it is an ongoing education process with us, but I am pleased that at least we were assessed as being compliant with the act and the recommendations are more of an administrative nature to improve our performance rather than anything else.

Mr Gaughan: ... in relation to any activity where we use covert powers, we are required to complete an affidavit. In the first instance that affidavit is actually reviewed by senior officers within the AFP to ensure that it not only complies with the Jaw but also that there is sufficient evidence to allow us to obtain the relevant warrant to undertake the activity. In most instances we will then appear before a member of the Administrative Appeals Tribunal, and a warrant will be provided and sent up to members of my team to be involved in the installation of the necessary device to undertake the surveillance in accordance with the conditions that are put in place by the AA T member.

The issues that were raised in the Ombudsman's report were primarily around the renewal of those particular surveillance device warrants, and the issue primarily raised was: where members, inadvertently , instead of seeking a renewal of a surveillance device had actually made an additional application for what appeared to be a new device. Obviously the member of the AAT that then issues the new warrant is not necessarily of the view or the knowledge that this is an extension of an application . Obviously, and rightly so, the Ombudsman has some concerns that full and frank infonnation is not being disclosed to the AAT member ... (I]t is an issue of education, and various members of the AFP are involved in the education process of members. We have had a significant influx of new members into the organisation in the last few years, as you would be well aware. But, as the Ombudsman also pointed out, it is not an issue of intentional noncompliance; it is an issue of people failing, to some extent, to understand what they are actually supposed to do. And we work very hard to ensure we comply with the act. 6

3.9 The conm1ittee will continue to monitor this issue in future reports .

6 Committee Hansard. 26 May 2011 , pp 20-22.

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Page 18

Protection visa processing taking more than 90 days

3 .I 0 Section 65A of the Migration Act imposes a requirement for the Minister to make a decision on a protection visa application within 90 days of the lodgement of the application. If this target is exceeded, under section 91 Y of the Act, the Secretary of the Department of Immigration and Citizenship is required to report on protection visa applications for which decision-making has taken over 90 days. The department is required to report every four months. The reports reviewed by the committee cover the period 1 November 2010 to 30 June 201 L

3.11 The table below compares protection visa processing by the department taking more than 90 days for the three previous reporting periods:

1 July 2010 to 1 November 2010 1 March 2011 to 31 October 2010 to 28 February 30 June 2011 2011

Total number 1561 1760 1734

undecided outside of 90 day period

Total number 1091 1270 1151

decided outside of 90 day period

Total number 2652 3030 2885

processed outside of 90 day period

Percentage of total 43% 52% 29%

applications processed outside of 90 day period

3.12 The committee notes the improvement in the percentage of total applications processed outside of the 90 day period for the most recent period, down from 52% to 29%. However, as noted in Chapter 1 of this report, the overall result for the percentage of onshore protection applications decided within 90 days for 201 0-11 was lower than the previous two years.

3.13 The department's report covering the most recent period, 1 March 2011 to 30 June 201 I, indicates that the number of delays attributable to the department has risen from 2,072 applications in this category across both decided and undecided groups, to 2,204. 7

7 Protection visa processi11g taki11g more than 90 days for the reporting period 1 March 2011 to 30June 2011, Letter of transmittal , p. 2.

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Refugee Review Tribunal reviews not completed within 90 days

3.I4 Section 440A of the Migration Act requires the Refugee Review Tribunal (RRT) to report on reviews not completed within 90 days. The RRT is required to report every four months. The reports reviewed by the conunjttee cover the period I November 2010 to 30 June 2011.

3.I5 The table below outlines the number of RRT reviews not completed within 90 days for the previous three reporting periods:

1 July 2010 to 1 November 2010 1 March 2011 to 31 October 2010 to 28 February 30 June 2011 2011

Reviews completed 190 (23%) 274 (30%) 272 (32%)

outside of 90 days

Reviews completed 636 (77%) 654 (70%) 578 (68%)

within 90 days

Total 826 928 850

3.16 The Migration Review Tribunal-Refugee Review Tribunal (MRT-RRT) has a KPI target of 70% of RRT cases decided within 90 calendar days.

3.17 The committee notes that the percentage of reviews completed within 90 days dechned throughout 2010-11. The Tribunals' Principal Member advised in the 20 I 0-11 annual report that this was:

due to member capacity issues arising from the combined impact of the increase in RRT cases and the appointment of experienced members as Independent Protection Assessors. Meeting the target of finalising 70% of RRT cases within 90 days will be a significant challenge in 2011-12.8

3.I8 The MRT-RRT annual report advised that over the 2010-11 period, 71% of RRT cases were decided within 90 days and the average time to decision was 99 days.9 The report further noted:

Increasingly, cases cannot be decided within the relevant time standards due to the growing volume of cases on hand. In 2010-11 the tribunals' active caseload increased by 53% compared to 2009-10. While the tribunals have

8 Migration Review Tribunal-Refugee Review Tribunal Annual Report 2010-11, pp 10-11.

9 Migration Review Tribunal-Refugee Review Tribunal Annual Report2010-ll, p. 41.

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Page ]0

responded by developing strategies to improve processing efficiencies, the . 1 d h . d . 10 acttve case oa as contmue to mcrease.

3.19 The Principal Member of the MRT-RRT advised the conunittee during the Additional Estimates 2011-12 hearings that Professor Michael Lavarch has been appointed by the Minister for Immigration and Citizenship 'to particularly consider strategies for reducing our backlog and also to look at the question of how the transition to us of the iiTegular maritime arrival caseload might best happen'.

11

Senator Trish Crossin Chair

I 0 Migration Review Tribunal-Refugee Review Tribunal Annual Report 2010-11 p. 41.

11 Committee Han sard. 13 February 2012. p. I 0.

228

APPENDIX 1

Reports tabled during the period 1 May and 31 October 2011 and referred to the committee

Department/authority / Date submitted Date tabled Date to Minister/Date in Senate tabled in

Operation of an act or program received by (received in the House Minister Senate out of of Reps session)

Attorney-General's Portfolio

D epartment/authority- Report for 2010-11

Administrati ve Review Council 9.9.11113.9.11 11.10.11 11.10.11

(7.10.11)

Administrative Appeals Tribunal 29.9.11/30.9.11 12.10.11 12.10.11

Attorney-General's Department 16.9.11116.9.1 I 31.10.11 31.10.11

(14.10.11)

Australian Security Intelligence 8.9.11/8.9.11 11.10.11 11.10.11 Organisation

Australian Customs and Border 26.9.11/5.10.11 31.10.11 31.10.11 Protection Service (21.10.11)

Australian Federal Police 22.9.11/22.9.11 31.10.11 31.10.11

(14.10.11)

Australian Gov etnment Solicitor 7.10.11/7.10.11 31.10.11 31.10.11

(14.10.11)

Australian Law Reform Commission - 29.9.11129.9.11 31.10.11 31.10.11 Report 116 (14.10.11)

Classification Board and Classification 16.9.11119.9.11 12.10.11 12.10.11 Review Board

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CrimTrac Agency 23.9.11123.9.11 12.10.11 12.10.11

Family Law Council 12.9.1111 2.9.11 11.10.11 11.10.11

(28.9.11)

Family Court of Australia 6.10.1116.10.11 31.10.11 31.10.11

(14.10.11)

Federal Court of Australia 6.10.1116.10.11 31.10.11 31.10.11

(14.10.11)

Federal Magistrates Court of Australia 6.10.11/6.10.11 31.10.11 31.10.11

(17.10.11)

Insolvency and Trustee Service Australia 30.9.11130.9 .11 31.10.11 31.10.11

(18.10.11)

National Native Title Tribunal 5.10.1116.10.11 31.10.11 31.10.11

(18.10.11)

Office of Parliamentary Counsel 28.9.11/29.9.11 12.10.11 12.10.11

Op eration of an act/program

Bankruptcy Act 1966-Report for 2010- 30.9.11130.9.11 31.10.11 31.10.11 11 on the operation of the Act (18.10.11)

Crimes Act 1914 - Australian 2 1 . 7. 11 /21 . 7 .1 1 13.9.11 25.8.11 Commission for Law Enforcement Integrity- Repmis 2010-11 -Authorisations for the acquisition and

use of assumed identities

Witness identity protection certificates

Crimes Act 1914-Reports for 2010-11 2 8. 9. 11 /2 8 . 9. 1 1 31.10.11 31.10.11

Authmisations for the acquisition and (14.10.11)

use of assumed identities - Australian Federal Police

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Crimes Act 1914-Reports for 20 I O-I1 - 4.10.I1/5.10.11 31.10.11 31.10.11

Controlled operations (20.1 O.I1)

Crimina! Code Act 1995-Control orders I9.8.11119.8.11 13.9.11 13.9.11 and preventatives detention order -report for 2010-11

Cllstoms Act 1901 -Conduct of Customs 27.9.11/4.10.11 11.10.11 11.10.11 Officers [Managed deliveries] Report for 2010-ll (28.9.11)

National Security Information (Criminal 19.8.11/19.8.11 13.9.11 13.9.11 and Civil Proceedings) Act 2004 - Non -disclosure and witness exclusion certificates- Report for 201 0-11

Surveillance Devices Act 2004 - 1.4.Il/1.4.11 14.6.1I 23.5.11 Commonwealth Ombudsman's report on inspections of surveillance device records for the period 1 July to

3I December 2009 - Australian Crime Conmlission and Australian Federal Police

Witness Protection Act 1994 -Report for 23.9.11/23.9.11 31.10.11 31.10.11 20 I 0-11 on the operation of the National Witness Protection Program (14.10.1I)

Immigration a11d Citi:enslzip Portfolio

Department/authority- Reportfor 2010-11

Department of Immigration and 29.9.11/29.9.11 31.10.11 31.10.11 Citizenship (14.10.11)

Migration Agents Registration Authority 27.9.11/27.9.11 31.10.1I 31.10.11

(14.10.11)

Migration Review Tribunal and Refugee 14.9.11/22.9.11 31.10.11 31.10.11 Review Tribunal (I4.10.11)

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Migration Act 1958

Section 4860-Assessment of detention 4.5.11/4.5.1 I arrangement - Personal identifiers 620/11, 621 /11, 623/11 to 627/11 , 629/11 and 630/1 I

-Commonwealth Ombudsman's repmts -Government response to Ombudsman's report

Section 4860-Assessment of detention 6.6.11/6.6.11 arrangements - Personal identifiers 622/11, 628/11 and 631/11 to 638/11 -Conm1onwealth Ombudsman's repotts -Government response to Ombudsman's reports

Section 4860-Assessment of detention 5. 9.11/6.9.11 arrangements - Personal 639/11 to

identifiers 642/11

-Commonwealth Ombudsman's reports -Government response to Ombudsman's reports

11.5.11

15.6.11

14.9.11

Section 91Y- Protection visa processing 14.4.11/14.4.11 15.6.11 taking more than 90 days - Report for 1 November 2010 to 28 February 2011

Section 440A - Conduct of Refugee 14.4.11/14.4 .11 Review Tribunal reviews not completed within 90 days - Report for

1 November 2010 to 28 February 2011

15.6.11

Section 91 Y - Protection visa processing 11.8.11/11.8.11 21.9.11 taking more than 90 days - Report for the period 1 March to 30 June 2011

Section 440A - Conduct of Refugee 11.8.11/11.8.11 21.9.11 Review Tribunal reviews not completed within 90 days - Report for

I March 2011 to 30 June 201 I

232

11.5.11

15.6.11

14.9.11

15.6.11

15.6.11

21.9.11

21.9.11

The Senate

Rural and Regional Affairs

and Transport

Legislation Committee

Annual repotis (No. 1 of2012)

March 2012

233

©Commonwealth of Australia

ISBN 978-1-74229-574-9

This document was produced from camera-ready copy prepared by the Senate Rural Affairs and Transpo11 Legislation Committee. and printed by the Senate Printing Unit, Department of the Senate, Parliament Hou se, Canben∑a.

II

234

Membership of the Committee

Members

Senator Glenn Sterle ALP, Western Australia Chair

Senator the Hon. Bill Heffernan LP , New South Wales Deputy Chair

Senator Alex Gallacher

Senator Fiona Nash

Senator Anne Urquhart

Senator Rachel Siewert

ALP, South Australia

NP A, New South Wales

ALP , Tasmania

AG, Western Australia

Participating Members

Senator Abetz Senator Cash Senator Humphries Senator Adams Senator Colbeck Senator Johnston Senator Back Senator Com1ann Senator Joyce Senator Bernardi Senator Crossin Senator Kroger Senator Bilyk Senator Di Natale Senator Ludlam Senator Senator Edwards Senator Macdonald

Birmingham Senator Eggleston Senator Madigan Senator Bishop Senator Faulkner Senator McEwen Senator Boswell Senator Fawcett Senator McKenzie Senator Boyce Senator Senator Marshall

Senator Brandis Fierravanti- Wells Senator Mason Senator B Brown Senator Fifield Senator Milne Senator C Brown Senator Fisher Senator Moore Senator Bushby Senator Furner Senator Parry Senator Cameron Senator Hanson- Senator Payne

Young

Ill

235

Senator Polley Senator Pratt Senator Rhiannon Senator Ronaldson Senator Ryan Senator Scullion Senator Singh Senator Stephens Senator Thistlethwaite Senator Waters Senator Williams Senator Wright Senator Xenophon

Committee Secretariat

Ms Jeanette Radcliffe , Secretar y (until 2 March 20 12) Mr Stephen Palethorpe, Secretary (commenced 5 March 2012) Ms Cassimah Mackay, Research Officer

PO Box 6100

Parliament House CanbeiTa ACT 2600

phone: (02) 6277 3511 fax: (02) 6277 5811 e-mail: rrat.sen (d'aph.gov.au intemet:www.aph.!.!OY.au/Parliamentary Business/Committees/Senate Committees'?url =rrat cttel index. htm

IV

236

Table of Contents

Men1bership of the Committee ........................................................................ iii

List of Abbreviations ....................................................................................... vii

Chapter 1 .............................................................................................................. 1

Over\'ie\\ y .................. .................................................................................................. !

Tem1s of Reference ................................................................... ..................... ........ 1

Purpose of annual reports .......... ....................... ............................ ........... ............... 2

Requirements .............. ...... ..... ...... ....... ................... .............. ................................. .. 2

Reports referred to the committee ............ .............. .... .......... ... .................... ........... 3

Reports not exan1ined ............................................................................................. 4

Timeliness ............................................................................................. .................. 5

Comments on reports ................... ....... ........... ....................................... .................. 6

Chapter 2 .............................................................................................................. 9

Annual reports of departments .................................................................................. 9

Department of Agriculture, Fisheries and Forestry ................................................ 9

Department of Infrastructure and Transport.. ............. ..................... ............... ...... 12

Chapter 3 ............................................................................................................... 19

Annual reports of agencies .................................................................................... 19

Agriculture, Fisheries and Forestry portfolio ....................................................... 19

Commonwealth authorities ............................... .................................................... 19

Prescribed agencies ............. .......... ......... .............. ............................. ............. ..... . 19

Infrastructure and Transport portfolio ............... ..... .............................................. 20

Commonwealth authorities ................................................................................... 20

Statutory corporations ............................................... .......................................... . 23

Commonwealth companies .................................................................................. 23

Appendix 1 ∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑t~∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑33

v

237

List of annual reports referred to the committee during the period 1 May 2011 to 31 October 20 11 ......................................................................................... 33

Agriculture , Fisheries and Forestry portfolio ......... ............. ........ ....... .... ...... ........ 33

Infrastructure and Transport pmifolio ....................................... ........................... 34

Appendix 2 ......................................................................................................... 37

List of annual reports tabled after 31 October 2011 ........................................... 37

Agriculture, Fisheries and Forestry portfoho ......................... .............................. 3 7

Infrastmcture and Transport portfolio .... ............ .... ......................... .............. ....... 39

Regional A ustralia , Local Government, Arts and Sport portfolio .... .......... ........ .40

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238

List of Abbreviations

AAO Administrative Arrangements Order

A BARES Australian Bureau of Agricultural and Resource Economics and Sciences

AMSA Australian Maritime Safety Authority

ANAO Australian National Audit Office

APVMA Australian Pesticides and Veterinary Medicines Authority

AQIS Australian Quarantine Inspection Service

ARTC Australian Rail Track Corporation Ltd

ASIC Aviation Security Identification Card

CAC Act Commom realth Authoriti es and Compani es Act 1997

CAC Orders ComnwnH 1ealth Authorities and Compani es (Report of Op erations) Orders 2008

CASA Civil Aviation Safety Authority

CEO ChiefExecutive Officer

COAG Council of Australian Governments'

DAFF Department of Agriculture , Fisheries and Forestry

EC Exceptional Circumstances

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

FMA Act Financial Manag em ent and Accountabili ty Act 1997

FOI Act Freedom oflnformation Act 1982

Infrastructure Depmtment of Infrastructure , Transport , Regional Development and Local Government

KPis Key Perfom1ance Indicators

MSIC Maritime Security Identification Card

Vll

239

NTC National Transport Commission

OH&S Act Occupational Health & Safety (CommonH∑ealth Employment) Act 1991

OTS Office of Transport Security

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

RALGAS i Regional Australia, Local Government, Arts and Spmt

Requirements for Requirements for Annual Reports for Departments, Executive Annual Reports Agencies and FMA Act Bodies

Vlll

240

Chapter 1

Overview

1 .1 The committee is responsible for examining the annual reports of departments and agencies within three portfolios:

" Agriculture , Fisheries and Forestry;

" Infrastructure and Transport ; and

" Regional Australia, Local Government, Arts and Sport.

Terms of Reference

1.2 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 cmnmittee shall:

(a) Examine each annual repmi 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 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 attention of the Senate any significant matters relating to the operations and perfom1ance of the bodies furnishing the annual reports.

(h) Repmi to the Senate each year whether there are any bodies which do not present annual repmis to the Senate and which should present such reports.

241

2

Purpose of annual reports

1.3 The tabling and scrutiny of annual reports by Senate committees, under Standing Order 25(20), is an imp011ant element in the process of accountability to Parliament. The information provided in annual reports is placed on the public record and assists Parliament in its examination of the perfom1ance of departments and agencies and the administration of government programs.

Requirentents

1.4 Annual reports are examined by the committee to determine whether they are timely and 'apparently satisfactory' . ln fom1ing its assessment, the committee considers whether the reports comply with the relevant legislation and guidelines for the preparation of annual reports:

" for departments of state and executive agencies these are: the Public Service Act 1999, subsections 63(2) and 70(2), and the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports), Department of the Ptime Minister and Cabinet (PM&C) , approved by the Joint Committee of Public Accounts and Audit on 6 July 2011 and updated by PM&C on

8 July 2011;

" for Commonwealth authorities and companies: the Commonvv ealth Authorities and Companies Act 1997 (the CAC Act), sections 9, 36 and 48, and the Commonwealth Authorities and Companies (Report of Op erations) Orders 2008 (CAC Orders); and

" for non-statutory bodies: the requirements 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, pp 2643-45.

1.5 The committee notes that on 22 September 2011 the Finance Minister signed the Commonwealth Authorities (Annual Reporting) Orders 2011. These Orders commenced on 14 October 2011, the day after registration , and replace the Commonwealth Authorities and Companies (Annual Reporting) Orders 2008.1

1.6 The Finance Minister also signed the CommonH 'ealth Companies (Annual Reporting) Orders 2011 on 22 September 2011. These Orders commenced on 13 October 2011, the day after registration. The committee notes that, prior to these Orders, 'no reporting Orders have been issued for wholly-owned Commonwealth companies' 2 and that these Orders require Commonwealth companies to report

Commonw ealth Authoriti es (Annual Reporting) Orders 1011. Explanator y Statement, p. 1.

2 Comm om vealth A uthoriti es (Annual Reporting) Orders 1011. Explanatory Statement. p. 2.

242

3

specific public sector issues in their annual reports, in addition to the requirements of the C 01porations Act 2001. 3

I .7 Annual reports for Commonwealth authorities and companies for the 2011-12 financial year should be prepared in accordance with the CommonH 'ealth Authorities (Annual Reporting) Orders 2011, and the Commonwealth Companies (Annual Reporting) Orders 2011, respectively.

Reports referred to the committee

1 .8 Standing Order 25(20)(£) requires the committee to report on annual reports tabled by 31 October each year by the tenth sitting day of the following year. This year, that date is 15 March 2012. The committee is also required to report on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year, this year, that date is 12 September 2012.

1.9 On 8 February 2012, the Senate amended the continuing order relating to the allocation of departments and agencies to committees. The change of allocations resulted in the Rural Affairs and Transport Committee changing its name to the Rural and Regional Affairs and Transport Committee. The change also resulted in the recently established Regional Australia, Local Government, Arts and Sport portfolio moving from the Finance and Public Administration Committee's responsibilities to the Rural and Regional Affairs and Transport Conm1ittee's responsibilities. The committee now has responsibility for the oversight of the following portfolios:

" Agriculture, Fisheries and Forestry;

" Infrastructure and Transport; and

" Regional Australia, Local Government, Arts and Sport. 4

I .1 0 As these changes occun∑ed after 31 October 201 I, reports within the Regional Australia, Local Government, Arts and Sport (RALGAS) portfolio, can be found in the Finance and Public Administration Committee's Report on Annual Reports (No. 1 of 2012).5 Reports from the RALGAS portfolio which were tabled after 31 October 201 I and by 30 April 2012 will be considered in this committee's Report on Annual Reports (No.2 of2012).

1.11 Tllis report considers annual reports which were tabled in the Senate or presented to the President of the Senate between 1 May 2011 and 1 November 2011. The committee notes that the Report on Annual Reports (No.1) considers reports tabled between 1 May and 31 October, however, five annual reports, including the

3 Commonw ealth Companies (Annual Reporting) Orders 2011. Exp lanatory Statement, p. I.

4 .Journals of the Senate No. 74. 8 February 2012, pp 2043-2044.

5 This report can be found at ww...,v .a ph. u:ov.au/Parl iamentary Business/Committees/Senate C omm itte es?url=fapa ctte/annu

al/index.htm (accessed 9 March 2012).

243

4

Depat1ment of Infrastructure and Transport's annual report, were tabled in the Senate on 1 November 2011.6 The committee reminds Departments and executive and prescribed agencies, that annual reports must be tabled in each House of Parliament by 3 1 October

7 , and that:

If Senate Estimates is scheduled to occur prior to 31 October, it is best practice for armual reports to be tabled prior to those hearings. 8

1.12 The committee examined two annual reports of agencies within the Agriculture , Fisheries and Forestry portfolio and five annual reports of agencies within the Infrastructure and Transport portfolio , as follows:

" Department of Agriculture , Fisheries and forestry - Report for 2010-11;

" Australian Pesticides and Veterinary Medicines Authority-Report for 2010-11;

" Wine Australia - Report for 2010-11;

" Department of Infrastructure and Transport-Report for 20 I 0-1 I ;

" Airservices Australia-Report for 20 I 0-11;

" Australian Maritime Safety Authority-Report for 20 l 0-1 1 ;

" Civil Aviation Safety Authority-Report for 201 0-11 ;

" National Transport Commission-Report for 201 0-11 ; and

" Australian Rail Track Corporation-Report for 201 0-1 I .

1.13 A complete list of reports referred to the committee (including those not examined) appears at Appendix 1.

Reports not examined

1.14 The committee is not obliged to report on Acts, statements of corporate intent, surveys, corporate plans or errata. The following four documents were referred to the committee but have not been examined:

" Acts Interpretation Act I 90 ]- Statement pursuant to subsection 34C(7) relating to the delay in presentation of a report-Australian Meat and Lh e-stock JndustJ)l Act I 997-Funding agreement 2010-14 between the Commonwealth of Australia and Australian Livestock Export Corporation Limited (Livecorp);

6 For a full list of annual reports tabled on 1 ovember 2011. see paragraph 1.17.

7 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports, 8 July 2011, p.2

8 Depar1ment of the Prime Minister and Cabinet, Requirem ents for Annual Reports, 8 July 2011, p. 2

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" Australian Meat and Live-stock IndustJy Act 1997-Funding agreement 2010-14 between the Commonwealth of Australia and Australian Livestock Export Corporation Limited (Livecorp);

" S) dney Ai1port D ema nd Management Act 1997-Quarter!y report on the maximum movement limit for Sydney Airport for the period 1 April to 30 June 2011; and

" S)dne) Ai1port D emand Management Act 1997-Quarterly report on the maximum movement limit for Sydney Airport for the period l July to 30 September 2011.

Timeliness

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

1.16 As stated in the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports), annual reports must be tabled in Parliament by 31 October each year, except where an agency's own legislation specifies a timeframe for its annual report. 9 Those agencies reporting under

the CAC Act are required to provide their annual reports to the Minister by the 15 1h day of the fourth month after the end of the fmancial year.10 Where the fmancial year ends on 30 June, this deadline translates to 15 October.

1.17 A number of annual reports were tabled in the Senate after the appropriate deadlines, beyond the date that they may be considered in this report. Five reports within the Infrastructure and Transport portfolio were tabled one day after the reporting deadline but have still been considered in this report. Those reports tabled late but still considered in this report are as follows:

" Airservices Australia - Report for 2010-11;

" Australian Maritime Safety Authority-Report for 20 I 0-11;

" Civil Aviation Safety Authority - Report for 20 I 0-1 I;

" Department of Infrastructure and Transport-Report for 20 I 0-11; and

" National Transport Commission-Report for 2010-11.

9 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports. 8 July 2011 , p. 2.

I 0 Com m omvealth Authoriti es and Companies Act 1997, s. 9.

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Comments on reports

Changes to legislative requirements for Departments, Executive Agencies and FMA Act Bodies

1.18 The committee notes that the Information Publication Scheme, introduced in May 2011, has replaced the former annual report publication requirements in section 8 of the Freedom of ll?formation Act 1982 (FOI Act). For the period 1 July 2010 to 3 0 April 20 11, annual reports should contain a section 8 statement , explaining these changes.''

1.19 With the introduction of a new National Disability Strategy , the reporting requirements for the Commonwealth Disability Strategy have been discontinued . Annual reports must now include an explicit and transparent reference to other disability reporting mechanisms, specifically noting where agency level information can be found. 12

1.20 The committee also notes new reporting requirements for departments whose activities impact on social inclusion outcomes, which require information about relevant programs and progress in relation to social inclusion strategic change indicators.

13

Changes to departmental structure

1.21 On 14 September 2010, the Australian Govenunent issued a new Administrative Arrangements Order (AAO). This resulted in the Department of Infrastructure and Transport reducing its outcomes from three to two, and transferring its Regional Development and Local Government functions to the recently established Depattment of Regional Australia. The Department of Infrastructure and Transport's Annual Report 2010-11 reflects the outcome and program structure and key performance indicators published in the 2010-11 Portfolio Budget Statement (PBS),

with regard to the AAO of 14 September 2010.

List of requirements/Compliance index

1.22 The cornn1ittee is pleased to note that a number of annual reports have improved their compliance indexes and reporting on requirements listed in the compliance index. A 'List of Requirements' is a mandatory inclusion specified in the

11 Department of the Prime Minister and Cabinet. R equirem ents for Annual Reports. 8 July 2011. ppi.l4-15and20 -22.

12 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports. 8 July 2011. pp i, 15 and 29.

13 Department of the Prime Minister and Cabinet. R equirem ents for Annual Reports, 8 July 2011. pp i. 7-8 and 29.

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Requirements for Annual Reports. 14 This list greatly facilitates the committee's task of

ensuring adherence to reporting requirements , as well as assisting agencies to clearly demonstrate that all legislative obligations have been met.

1.23 The committee considers that as a matter of best practice, CAC Act bodies should provide equivalent information in the form of a compliance index based on requirements in the CAC Act and their own governing legislation.

1.24 The conm1ittee is especially pleased with the Australian Rail Track Corporation and the National Transport Commission's inclusion of a complete compliance index, and reporting on items that were not included in previous reports.

Rep011 011 pelformance

1.25 The committee considers that most annual reports have provided a clear and thorough report on perfom1ance. Annual reports that contained the information presented in tables, with a status marking items as 'achieved' or 'partially achieved' were especially effective in demonstrating performance in relation to requirements, and whether or not objectives were achieved. The Requirements of Atmual Reports specifies that the review must include:

a statement noting if the department has historically met each Key Performance Indicator (KPI). For those KPis that have not been achieved, a brief explanation is to be inc] uded. 15

1.26 The committee considers that the Department of Infrastructure and Transport has fulfilled this reporting requirement to a high standard.

14 Department of the Prime Minister and Cabinet, Requirem ell!sfor Annual Reports. 8 July 2011. p. 17.

15 Department of the Prime Minister and Cabinet, Requireme nts for Annual Reports. 8 July 2011 ,

p. 7.

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Chapter 2

Annual reports of departments

Department of Agriculture, Fisheries and Forestry

2.1 The Department of Agriculture, Fisheries and Forestry (DAFF) Annual Report 2010-11 was prepared in accordance with section 63 of the Public Service Act 1999. The report was received by the Senate on 6 October 2011 and tabled on 11 October 20 11.

2.2 The report is presented in accordance with the list of requirements specified in the Department of the Prime Minister and Cabinet's Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 8 July 2011 (Requirements for Annual Reports).

2.3 DAFF's Annual Report 2010-11 contains the following information:

" the secretary's yearly review highlighting the achievements of the department;

" a departmental overview outlining DAFF's operations and organisational structure;

" report on performance as measured against deliverables and key performance indicators (KPis) specified in the Portfolio Budget Statements (PBS);

"

"

"

an overview of the department's management and accountability arrangements, including corporate governance practices, people management, systems and administrative processes, external scrutiny, reviews and evaluations and external service providers;

appendices detailing agency resource and outcome resource statements, workforce statistics, occupational health and safety, reporting under the Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act), the Freedom of ],~formation Act 1982 (FOI Act), grant programs, advertising and market research, purchaser-provider arrangements, ABARES publicly released reports /conference papers, status of import risk analyses, market access, report on operation of the Natural Resources Management (Financial Assistance) Act 1992 and cotTection of errors in the 2009-10 annual report; and

financial statements .

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2.4 Also included are the fmancial statements for the Australian Quarantine Inspection Service (AQTS) and National Residue Survey.1

Departmental overview

2.5 The committee notes the following items of significance for DAFF during 2010-11:

" extreme weather events, including flooding in Queensland and Victoria , and Tropical Cyclone Yasi;

" refonn in Biosecurity and animal welfare policy;

" West Australian (WA) pilot of drought reform;

" increased communications, including using social media to communicate situation reports on plague locusts and using YouTube to broadcast presentations for conferences ;

" recognition of risk management in the national Comco ver award for excellence ; and

" 13 per cent increase in levies revenue from previous year.

Report on pe1jormance

2.6 DAFF has measured its performance against the deliverables and key performance indicators (KPis) specified in the 2010-11 PBS . A helpful overview of DAFF's performance framework is provided at the beginning of the report on perfonnance. The committee is disappointed to find that DAFF has removed its 'Summary of performance' section in its report for 2010-11. The committee found this to be a useful tool in DAFF's 2009-10 report, as it made it clear when establishing whether or not performance targets were met. The committee encourages DAFF to include this section in its next annual report, with specific figures on targets met.

2. 7 Notwithstanding the removal of this summary , the committee finds DAFF's reporting on performance to be comprehensive and informative , providing assessments of actual performance in relation to targets where appropriate.

2.8 The committee notes that DAFF has included a 'performance history' statement underneath each KPI, stating if it is a new KPI for 2010-11, or if the target has been met in the past. 2 Past performance is not included in every 'performance history' statement and the committee points DAFF to the Requirements for Annual Reports that requires a statement on whether the department has historically met each

Departm ent of Ag riculture. Fisheries and Forestry, Annual R eport 2010-11. pp 397-452 and 453-496.

2 Departm ent of A griculture. Fisheries and Forestry. A nnual Report 2010-11. pp 50-51 , 66-6 7, 75-76,84.83 101-102, 108- 109. 113,131 , 138, 141 , 156. 178-179.204.

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KPI, with a suggested period of three years of KPI performance data to be provided, where applicable. 3

2.9 The conunittee notes the following items:

" 10,100 FarrnReady reimbursement grants were paid in 2010-11, including 1300 relating to earlier approvals. DAFF greatly exceeded its target of 2700 grants. 4

" Agricultural land that was Exceptional Circumstance-declared declined from 26.1 per cent in June 2010 to 0.3 per cent in June 2011. The expenditure for Exceptional Circumstance (EC) assistance to primary producers and small businesses in 2010-11 was lower than 2009-10, reflecting this decline. 5 Each KPI for DAFF's drought programs was met in 2010-11.6

" The W A pilot of drought reform measures has been extended for another 12 months, with cessation now scheduled for 30 June 2012. The pilot has been expanded and will now cover 96 per cent of farmers in the south-west ofWA. 7

" The most recent five-yearly independent reviews for Regional Forestry Agreements took place in 2009-10 and 2010-11, with joint Commonwealth and State responses for Victoria and New South Wales expected to be tabled in late 2011. The Committee notes that the achievement for the progress in conducting Regional Forestry Agreements reviews is listed as 'partially met', however, the performance history does not provide a clear explanation as to why. The Committee reminds DAFF that its annual rep011 would benefit from

specific explanations when achievements are not listed as 'met'.

" The Forest Industries Climate Change Research Fund concluded on 30 June 2011. The fund, through Program 1.3: Forestry Industry , provided $4.76 million for 20 projects , five of which were due to provide their final report by December 2011.8

3 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports, 8 July 2011 , p. 7.

4 Depa1iment of Agriculture , Fisheries and Forestry, Annual Report 2010-1 I, pp 45 and 49.

5 Department of Agriculture, Fisheries and Forestry, Annual Report 2010-11, p. 136.

6 Department of Agriculture Fisheries and Forestry,Amwa/ Report 2010-11, p. 138.

7 Department of Agriculture , Fisheries and Forestry, Annual Report 2010-11, pp i and 139.

8 Department of Agriculture , Fisheries and Forestry,Annual Report 2010-11, p. 71.

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Management and accountability

2.10 Three ANAO perf01mance audits relating to DAFF's activities were tabled during 2010-11. Two of these reports related to audits of financial statements . The third report related to drought assistance, the findings of which are discussed below.

2.11 The Australian National Audit Office (ANAO) Report No. 53 of 2010-11 assessed the effectiveness of DAFF's administration of the EC measures and the implementation of the W A pilot of new drought reform measures.

2.12 The report found that DAFF's administration of the EC programs was 'generally sound'. Applications were assessed and reviewed by DAFF and the National Rural Advisory Council in a timely and consistent manner, and the Minister was provided sufficient infom1ation in order to make an informed decision to declare an area as experiencing EC or not.

9

2.13 EC payments require a coordinated effort , with DAFF playing a key role in assuring that Centrelink delivers the payments in a ti1nely and accurate manner. In its audit, ANAO recommended that DAFF negotiate arrangements to provide greater assurance in relation to Centrelink's perfonnance in delivering each drought assistance program against KPis. DAFF agreed with this reconunendation. 10

2.14 Overall, DAFF agreed to two recommendations and agreed with qualification to the third and final recommendation. In its response, DAFF stated that it is 'committed to addressing the matters raised in the report, especially given the Australian Government's commitment to national drought policy reform'. 11

Conclusion

2.15 The committee considers that DAFF's Annual Report 2010-11 complies with the reporting requirements of a Commonwealth department and is 'apparently satisfactory'.

Department of Infrastructure and Transport

2.16 The committee notes that on 14 September 2010, the department changed its name from the Department of Infrastructure , Transport, Regional Development and Local Government, with the transfer of its regional development and local government functions to the newly established Department of Regional Australia , Regional Development and Local Government. Certain staffing and financial resources also moved with the transfer. 12

9 ANAO. Drought Assistance. Audit Report o, 53 of 2010-11. p. 21 .

I 0 ANAO , Drought Assistan ce, Audit Report No. 53 of 2010-1 L pp 22 and 30.

II ANAO . Drought Assistan ce. Audit Report No. 53 of 2010-11. p. 29.

12 Department of Infrastructure and Transport. Annual Report 2010-11. p. 2.

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2.17 This is the first annual report for the D epartment of Infrastructure and Transport (Infrastructure) since these changes.

2.18 Infrastructure's Annual Report 2010-11 was prepared in accordance with section 63 of the Public Service Act 1999 and other relevant legislation. The report was tabled in the Senate on 1 November 2011, however, the committee notes that it was received by the Minister on 7 October 2011. Despite being tabled after the 31 October deadline, the committee has decided to consider Infrastructure's report in this review of annual reports.

2.19 The report is presented in accordance with the list of requirements specified in the Requirements for Annual Reports.

2.20 Infrastructure has provided a comprehensive review of its perfom1ance for 2010-11. Its report is clearly presented and includes a detailed and easy to follow list of requirements.

2.21 The Infrastructure Annual Report for 2010-11 contains the following infonnation:

" the secretary's yearly review highlighting the achievements of the department, and a summary of the fmancial performance for the year;

" a departmental overview outlining Infrastructure's outcome, program and organisational structure;

" report on perfonnance as measured against deliverables and key performance indicators (KPis) specified in the Portfolio Budget Statements (PBS);

" report on Infrastructure Australia's , in its capacity as a statutory body, with perfonnance reporting as measured against the deliverables and KPls specified in the PBS;

" an overview of the department's management and accountability mrangements, including corporate governance framework, external scrutiny , and management of human resources∑

" appendices detailing agency resource statements, resources for outcomes, procurement practices, compliance with envirom11ental performance, reporting under the FOI and OH&S Acts, grants program, additional human resource statistics, and a list of requirements; and

" financial statements.

Departmental overview

2.22 The committee notes the following items of significance for Infrastructure during 2010-11:

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" The release of Our Cities, Our Future-a national urban policy for a productive, sustainable and liveable future (also known as the National Urban Policy).

" Continued implementation of enhanced security screening and cargo security measures for aviation.

" The release of Reforming Australia's Shipping, a discussion paper towards the revitalisation of the Australian shipping industry.

" Further implementation of initiatives detailed in the Aviation White Paper, including the appointment of the flrst Aircraft Noise Ombud sman.

" The completion of the flrst phase of the high-speed rail study, with phase two continuing in 2011-12.

2.23 Infrastructure reported a deficit of $10.1 million for 2010-11. This figure is attributed to no longer receiving funding for depreciation and amortisation expenses. The report states that if this funding had been appropriated, Infrastructure would have reported a surplus of $2.4 million. 13 The report also provides a table that contains a summary of the financial performance and position for the last five financial years. The table includes figures for the surplus or deficit attributable to the Australian Govemment , which is useful in comparing 2010-11 with previous years. 14

Report 011 peJformance

2.24 Infrastructure has measured its performance against the deliverables and KPis specified in the 20 I 0-11 PBS. A useful summary of perfom1ance is provided at the beginning of each program section. Infrastructure has again provided a clear and easy to read table for each KPI that clearly states whether or not it was achieved, as well as a results key under each table, clearly explaining the terms used in the table. The committee notes that all KPis for 2010-11 were 'achieved'. 15

2.25 Under Program 1: Infrastructure , the committee notes that

" lnfrast1ucture administered $50.4 million to improve road safety at identified crash sites. In 20 l 0-11, 220 Black Spot projects were completed, with a further 128 under construction at 30 June 2011. 16

" Nation Building Heavy Vehicle Safety and Productivity received $21.3 million to improve safety and productivity for Australian heavy

13 Department of Infrastructure and Transport, Annual Report 2010-11, p. 5.

14 Depa1tment oflnfrastructure and Transp01t,Annua/ Report 2010-ll. p. 6.

15 Department of Infrastructure and Transport, A m111al Report 201 0-JJ, pp 20-21, 36-38, 45. 58, 66, 85.

16 Depa1tment oflnfrastructure and Transport, Annual Report 2010-11, p. 23.

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vehicle transport industry. In 2010-11, 3 7 projects were completed, with a further 43 underway at 30 June 2011.17

" Within the Regional Infrastructure Fund, Infrastructure paid $1 1 .4 million for two projects, the Mackay Ring Road in Queensland and the Scone level crossing in New South Wales. 18

" Across all states and territories, a total of 38 land transport infrastructure projects were completed, 32 were road infrastructure projects and s1x were rail infrastructure projects. 19

2.26 Under Program 2: Transport, the committee notes that:

" Of the 1 3 aviation security initiatives listed in the National Aviation Policy White Paper, six have now been implemented. One of these measures involved amending the Aviation Transport Security Regulations 2005 to enhance the Aviation Security Identification Card scheme. Work is continuing on the remaining seven aviation security initiatives.: 20

" The Aviation Transport Security Amendment (2009 Measures No. 2) Act 2010 took effect on 11 September 201 0. This Act made technical amendments to strengthen air cargo security legislative framework. This regulatory action was partly in response to an incident on 29 October 2010, when improvised explosive devices were detected in air cargo that was consigned in Yemen for transport to the United States. 21 Fallowing this incident, Infrastructure engaged in international actrvlttes to help coordinate strengthening atr cargo security

))

arrangements.-- " Infrastructure provided a formal response to the Australian National Audit Office's (ANAO) report into the Management of the Aviation and Maritime Security Ident~fication Card Schemes, which noted positive

comments on Infrastructure's approach to risk management.23 Further information on the ANAO report can be found in the management and accountability section of this report.

" The Tasmanian Freight Equalisation Scheme received $98.5 million in assistance and the Bass Strait Passenger Vehicle Equalisation Scheme

1 7 Department of Infrastructure and Transport. Annual Report 2010-1 I, p. 23.

18 Depa11ment oflnfrastructure and Transport, Annual Report 2010-11, p. 23.

19 Depa11ment ofinfrastructure and Transpo1t, Annual Report 2010-JJ, pp 24-25.

20 Department of lnfrastructure and Transport, Annual Report 2010-11, pp 35 and 39.

21 Depa11ment oflnfrastructure and Transp011. Annual Report 2010-11, pp 35, 36 and 37.

22 Department oflnfrastructure and Transpott , Amwal Report 2010-11, p. 38.

23 Department oflnfrastructure and Transpm1, Annual Report 2010-11, p. 35.

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(BSPVES) received $36.5 million. The rebates payable under the BSPVES were increased, in accordance with the Consumer Price lndex. 24

" The National Transport Regulatory reforms are on track to be in place by the end of 2012. The Australian Maritime Safety Authority will become the national maritime regulator and the Australian Transport Safety Bureau will undertake all rail safety investigations. Having national regulators and national laws will eliminate inefficiencies, with productivity benefits and boost to national income expected to be up to

$30 billion over 20 years. 25

2.27 The committee is pleased to note that, following comments in its previous report, Infrastructure has included the KPI result from the previous financial year alongside the 201 0-11 result. While the Requirements for Annual Reports states that the report on performance must include a statement noting if the department has historically met each KPI, the committee considers that the way in which the information is provided in Infrastructure's 2010-11 report is satisfactory.

Management and accountability

2.28 Three major ANAO performance audits relating to Infrastructure's activities and four cross-portfolio audits involving Infrastructure were tabled during 2010-11. The main report, of particular interest, is discussed below.

2.29 The ANAO Report No. 39 of 2010-11 assessed the management of the Aviation and Maritime Security Identification Card (ASIC and MSIC) Schemes. The ANAO noted that there is a diverse range of government and industry bodies involved in the management of the ASIC and MSIC schemes, however the scope of the audit was confined to the role undertaken by Infrastructure and the Attorney-General's Department. 26

2.30 Infrastructure administers the Aviation Transport Security Act and the Maritime Transport and Offshore Facilities Security Act 2003. The Office of Transport Security (OTS), within Infrastructure, plays a role in the approval of transport security plans and monitoring compliance with approved plans. The OTS approves ASIC programs and MSIC plans on behalf of the Secretary and monitors the compliance of industry participants.

2.31 The ANAO stated that the ASIC and MSIC schemes are a multi-layered approach to the security of the aviation and maritime industries. The effectiveness of the schemes require an appropriate balance between the risk of terrorism and other

24 Department oflnfrastructure and Transport, Annual Report 2010-11, p. 44.

25 Depa11ment of Infrastructure and Transport , Annual Report 2010-11, p. 49.

26 ANAO. Management of the Aviation and Maritime Security Identification Card Schemes, Audit Report No. 39 of2010-ll, pp 12 and 14.

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unlawful acts occurring, and the impact mitigation strategies may have on the efficiency of these operations. The ANAO found that the implementation of these schemes has been successful and has resulted in the timely issue of security cards. However, it also found that there are risks associated with the current delivery model, primarily relating to issuing bodies and visitor management, which could be better managed by the OTS. 27

2.32 The ANAO provided recommendations that would strengthen the schemes, increase assurance, improve compliance activities, and improve risk management.28 Infrastructure noted in its response to the ANAO that enhancements to the ASIC scheme arising from the National Aviation Policy White Paper are close to finalisation, after extensive industry consultation?

9

Infrastructure agreed to all

recommendations made in the Audit Report, and in its response, states that the implementation of two of the three recommendations has commenced.30

Conclusion

2.33 The committee considers that Infrastructure's Annual Report 2010-11 complies with the reporting requirements of a Commonwealth department and is 'apparently satisfactory'.

27 ANAO, Manag em ent of the Aviation and Maritime Security Identifi cation Card Schemes, Audit Report No. 39 of 2010-11, pp 24-25.

28 ANAO , Management C?fthe Aviation and Maritime Securif) lde11tifi cation Card Schem es, Audit Report No. 39 of2010-ll, pp 12 and 14.

29 ANAO , Management of the Al iation and Maritime Security Identification Card Schem es, Audit Report No. 39 of2010-11, p. 100.

30 A AO , Management of the Aviation and Maritime Security Identifi cation Card Schem es, Audit Report No. 39 of2010-11, pp 100-101.

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Chapter 3

Annual reports of agencies

3.1 The committee considered all of the following reports to be 'apparently satisfactory'.

Agriculture, Fisheries and Forestry portfolio

Commonwealth authorities

Wine Australia

3.2 The committee is pleased to note that Wine Australia has again certified its compliance with the Conunonwealth Fraud Control Guidelines in the prescribed I

manner.

3.3 The committee notes that there is a brief mention of the Australian Wine and Brandy C01poration Act 1980 having been amended to Wine Australia Corporation Act 1980, in relation to the new Label Integrity Program. However, there is no mention of the name change from Australian Wine and Brandy Corporation , to Wine

Australia. As the name change occurred in the 20 10-11 financial year, the committee considers this to be of significance, and should therefore have been included in the annual report.

3.4 The committee commends Wine Australia on its reporting under the OH&S Act. The committee notes, however, that reporting under the FOI Act did not contain a list of the categories of documents maintained, nor did it provide specific contact details for inquiries. The committee therefore considers that reporting under the FOI Act could be improved.

2

Prescribed agencies

Australian Pesticides and Veterilw'J ' Medicines Authority

3.5 The committee conm1ends APVMA on its thorough reporting on perfonnance. It contains an assessment of progress towards outcomes, as well as relevant descriptions of processes and activities. The committee notes, however, that the readability could be improved if the infom1ation was provided in a table fonnat. 3

Wine Australia , Annual R eport 2010-11, pp 7 and 48.

2 Wine Au stralia, Annual R eport 2010-11, pp 47 and 48.

3 APVMA , Annual R eport 2010-11. pp 16-18.

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3.6 A few mandatory reporting requirements, such as a narrative discussion and analysis of performance, and trend information, were included in the list of requirements as 'not applicable'. The committee agrees that this is preferable to removing them completely from the list of requirements. However, for reporting requirements that are listed as mandatory, not to be confused with items that are listed as 'If applicable, mandatory', the committee believes that if these items are not applicable, the report would benefit from including a statement explaining why they are not applicable.

4

3. 7 APVMA's agency resource statement is found in the list of requirements, however, the committee could not locate an agency resource table. Information required to be in the agency resource table can be located throughout the financial statements, however the conunittee does not agree an agency resource statement has been included in the report. The committee points APVMA to Attachment E of the Requirements of Annual Reports, which states, 'The annual report must include in an appendix an Agency Resource Statement table' and provides an example of what the table should look like. 5

3.8 The committee again commends APVMA on its reporting on the management of human resources. The committee is also pleased to note that, following comments in its previous report, APVMA has included SES remuneration in the same section as other classification levels and has also included the aggregated amount of performance-linked bonus payments.6

Infrastructure and Transport portfolio

Commonwealth authorities

Airservices Australia

3.9 Airservices Australia has, overall, provided a thorough and comprehensive annual report. The compliance index was again an improvement from Airservices Australia's previous report, with the exception of reporting on corporate governance statements, which was provided in the report, however, not listed in the compliance index. 7 The committee also reminds Airservices Australia that, in accordance with the CAC Orders, the responsible minister must be listed by name.8

4 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 8 July 201 L pp 7-8 and 34.

5 Depa11ment of the Prime Minister and Cabinet, Requirem ents for Annual Reports, 8 July 2011, pp 30-32.

6 APVMA, Annual Report 2010-11. p. 80.

7 Airservices Australia , Annual Report 2010-11, p. 10.

8 Airservices Australia Annual Report 2010-11, p. 10; CAC Orders, Section 11 , p. 3.

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3 .I 0 The review of operations not only provides a description of activities, but also provides an assessment of performance. The layout is clear, with helpful tables that enhance readability. The committee considers that including another column in these tables, to mark whether the activity was found to be 'achieved', 'partially achieved' or

'not achieved' , would benefit the review of operations. 9

3.11 The committee again commends Airservices Australia's thorough reporting under the Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act), the Freedom of Information Act 1982 (FOI Act) and the Occltpational Health and Safety Act 1991 (OH&S Act).1 0 The information provided is both clear and comprehensive. The committee especially notes the inclusion of statements relating to updates made to the reporting requirements within the Acts.

11

3.12 Airservices Australia lists a new five year pricing proposal as one of its significant events for the financial year. The committee notes that the previous five year pricing cycle ended in 2009, however, prices have been frozen since that time, due to the global financial crisis. 12

Civil Aviation Safety Authority

3.13 CASA has again fulfilled its reporting requirements to a high standard. The report is clear and well structured, and CASA has provided comprehensive reporting under the EPBC, FOI and OH&S Acts, as well as the National Disability Strategy. The committee especially notes CASA's statements in relation to amendments to the reporting requirements within these Acts, and the statement to reflect the relevant changes from the Commonwealth Disability Strategy to the National Disability Strategy. 13

3.14 The compliance index is helpfully separated by legislative reporting requirements, however, the committee notes some minor errors, and incorrect page numbers provided. 14 This did not hinder the committee's ability to assess CASA's compliance.

3.15 CASA's report on performance is presented in a clear, easy to understand layout, with case studies and sumn1aries provided. The committee notes CASA has used a tick symbol to represent the status of result, with a key provided at the

9 Airservices Australia, Annual Report 2010-11, pp 18-21.

10 Airservices Australia , Annual Report 2010-11. pp 23, 101-109.

11 Airservices Australia , Annual Report 2010-11, pp 17 and 23.

12 Airservices Australia , Amwal Report 2010-11, pp 2-5.

13 CASA ,Annual Report 2010-11, pp 83-86, 100-101,103 and 172-174.

14 For example, enabling legislation was not listed in the index; location of major activities and facilities was listed asp. 185 instead ofp. 189; reporting under FOI was listed as pp 172-174 but did not include pp I 00- 10 I.

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beginning of the report on perfom1ance. The committee finds that for results listed as one or two ticks, that is, 'delayed /may not meet the target' or 'Some delay/issues being managed', the report would benefit from a statement providing further infom1ation on the delays or issues being managed.15

3.16 The committee notes CASA's progress in its work on a new set of safety regulations for maintenance and engineer licensing, under the Civil Aviation Safety Regulations. CASA regards the release of the regulations as a 'key moment in CASA's history' , stating that the new regulations can reduce complexities in the intemational aviation market, while also 'improving Australia's competitive edge in the world air

transport indu try'.16 More than 7.000 Licensed Aircraft Maintenance Engineers have been issued licences under the new regulations .17

Australian Maritime Safety Authority

3.17 The conm1ittee is pleased to note that, following comments in its previous report, improvements have been made in AMSA's annual report , particularly , to the compliance index. While some reporting requirements were not included, for example, certification by directors and the Auditor-General's report, the committee considers it to be a significant improvement from previous annual reports. The layout of the index is clear, with separate headings for different legislative repot1ing

" 18

reqmrements.

3 .18 AM SA's reporting on perfom1ance is presented in a clear and easy to understand fonnat, with a helpful summary of highlights provided at the beginning. The tables providing information on the targets and results are clearly presented, however, the conm1ittee finds that the reporting on perfonnance would benefit from the inclusion of another colunm to mark targets as 'achieved' , 'partially achieved', or

'not achieved'. 19

3.19 The committee notes that in 2010-11, 4668 foreign flag ships made 23 498 visits to 79 Australian ports. AMSA conducted 3131 port state control inspections , from which 266 ships were detained until major deficiencies were addressed. 20

3.20 In 2013, AMSA will become the national safety regulator for all commercial vessels as part of the national maritime safety refon11. AMSA provided the likely benefits that will be achieved as a result of coordinating the different jurisdictions and

15 CASA . Annual R eport 2010-11. pp 35-56.

16 CASA. Annual R eport 2010-11. p. 27.

17 CASA. A nnua! Report 2010-11, pp 12, 21 and 27.

18 AMSA, A nnual Report 2010-11, pp 182-183.

19 AMSA , A nnual Report 2010-11, pp 19-58.

20 AMSA , A nnual Report 2010-11. p. 20.

262

23

laws, including a reduction m the complexity for vessel owners, operators and suppliers. 21

Statutory corporations

National Transport Commission

3.21 The NTC is not a Commonwealth authority for the purposes of the CAC Act, however, the NTC's enabling legislation states that certain sections of the CAC Act apply to it, including section 9, relating to annual reporting requirements. Under Schedule l of the CAC Act, an agency's annual report must include a report of operations prepared in accordance with the CAC Orders.

3.22 The committee is pleased to note that, following conm1ents made in its previous report, the NTC has vastly improved its compliance index. Furthermore, the reporting requirements have been greatly improved, with comprehensive reporting on external scrutiny and specific information on directors. 22

Commonwealth companies

Australian Rail Track Cmporation

3.23 The committee is pleased to note that, following comments in its previous report, the ARTC has printed its annual report in international B5 size, as required in the Printing standards for documents presented to Parliament. 23

3.24 The conu11ittee is also pleased to note that the ARTC has included a compliance index in its annual report. While the inclusion of this index is not mandatory for the AR TC , the committee finds it immensely helpful when assessing the ARTC's compliance in reporting requirements .24

3.25 The committee notes that the ARTC has especially improved its reporting on corporate governance, particularly the inforn1ation provided in relation to the Board's approach to identifying areas of significant business risk, and arrangements in place to y

manage them.-)

21 AMSA , Annual Rep011 2010-11, pp 46--47.

22 National Transport Commission, Annual Report 2010-11. pp 48,45--47 and 87.

23

\o\'Ww.aph .uov.au/Parliamentarv Business/Chamber documents/Tabled Paper /Ad\∑ ice to !!OV

emment a!!encie . #format (Accessed 8 March 20 12).

24 ARTC , Annual Report 2010-11, p. 112.

25 ARTC, Annual R eport 2010-11. pp 32-3:?..

263

24

Senator Glenn Sterle

Chair

264

Appendix 1

List of annual reports referred to the committee during the period 1 May 2011 to 31 October 2011

Agriculture, Fisheries and Forestry portfolio

Legislation Letter of Date Sent Date Tabling

transmittal to received by date*

date Minister Minister

Departments of State

D epartment of Agriculture, Public Sen " ice Act 1999 23/09/11 26/09/11 26/09/11 11110/11 * Fisheries and Forestry-Report for 2010-11 Financial Management (received

and Accountability Act 06/10/11)

1997

Commonwealth authorities

Wine Australia Wine Australia 1/10/11 21 /09/11 21 /09/11 31110/11 *

Corporation-Report for C01poration Act 1980 2010-11 (received

CAC Act 1997 19/1011 l)

Prescribed agencies

Australian Pesticides and Agricultural and 21109/11 18/09/11 5/10/11 31/10/11 *

Veterinary Medicines Veterinary Chemicals Authority-Report for 20 I 0- (Adm inistratio n) Act (received

11 1992 26/10/11)

FMAA ct 1997

*An asterisk denotes reports presented to the President out-of-session.

265

26

Infrastructure and Transport portfolio

Legislation Letter of Date Date Tabling

transmittal Sent to received by date* date Minister Minister

Departmeut of State

D epartment of Infrastructure , Public Service Act 1999 4/10/10 7/10/11 7/10/11 1111111

Transport, Regional Ailports (En vironm ent

D evelopment and Local Government- Report for Protection) Regulati ons 2010-11

197

A ir Navigation Act 1920

A ircraft Noise levy Collection Act 1995

FMA Act 1997

Commonwealth authorities

Airservices Au stralia-A irservices Act 1995

Repmi for 20 1 0-11

Section 1 6(2) p 12. 17(4) p 13. 18(3) pl3. section 51 p30

CAC Act 1997

Au stralian Maritime Safety Australian Maritime 22/09/11 5/1011 1 5/10/11 1111111 Authority- Report for 2010- Safety Authority Act 11 1990

CAC Act 1997

C i vii Aviation Safety Civil Aviati on Act 12/10/11 12/10/11 12/10/11 1111111

Authority- Report for 2010- 1988 (section 49) 11 CAC Act 1997

Statutory corporatio11s

National Transport National Transport 7/10/11 6110/11 7110/11 1111111

Commission- Report for Co mmission Act 2003 2010-11 CAC Act 1997 (sections 9, 18, 20 and Schedule

1)

Commonwealth companies

266

27

Legislation Letter of Date Date Tabling

transmittal Sent to received by date*

date Minister ∑ Minister

Australian Rail Track C01porations Act 2001 21109/11 22/09/11 31110/11 *

Corporation Ltd-Report for 2010-11 (received

26/10/11)

Other

Statement pursuant to Acts Interpretation Act 22/07/11 26/08/11 12/09/11 *

subsection 34C(7) relating to 1901 the delay in presentation of a (received

report- Australian Meal and Australian Meat and 31/08/11)

Live-stock Industry Act Live-stock Indusfly Act /997- Funding agreement 1997 2010-14 between the Commonwealth of Australia and Austral ian Livestock Export Corporation Limited (Livecorp)

Australian Meat and Live- Australian Meat and 22/07/11 26/08/11 12/09/11 *

stock Indust1y Act 1997- Live-stock Industry Act Funding agreement 201 0-14 1997 (received

between the Commonwealth 31/08/1 I)

of Australia and Australian Livestock Export Corporation Limited (Livecorp)

International Air Services International Air 23/0911 1 26/09/11 27/09/11 1111/11 Commission-Report for Services Commission 2009-10 Act 1992

Sydney Airport Demand Sydney Ai1port n/a 28/07/11 1108/11 11/10111

Management Act 1997- Demand Management quarterly report on the Act 1997 maximum movement limit for the period 1 April to 30 June 201 I

Sydney Ai1port D emand Sydney Ai1port n/a 20/10/11 24/10/11 9/11/11

Management Act 1997- Demand Management quarterly report on the Act 1997 maximum movement limit for the period 1 July to 30 September 2011

*An asterisk denotes reports presented to the President out-of-session .

267

268

Appendix 2

List of annual reports tabled after 31 October 2011

Agriculture, Fisheries and Forestry portfolio

Legislation Letter of Date Sent Date Tabling

transmittal to receh,ed by date*

date Minister Minister

Commonwealth authorities

Cotton Research and PIERDAct 1989 4110/11 3/11111 9111111 7/02/12*

Development Corporation-Report for 20 I 0-11 CAC Act 1997 (received

2/12/11)

Fisheries Research and PIERD Act 1989 25/08111 2/11111 8/11111 7/02112*

Development Corporation-Report for 2010-11 CAC Act 1997 (received

19/12111)

Grains Research and PIERD Act 1989 6/10/11 24/10/11 8/11/11 22/11/11

Development Corporation-Rep011 for 201 0-11 CAC Act 1997

Grape and Wine Research PIERD Act 1989 23/08111 24110111 8/11111 7/02/12*

and Development Corporation-Report for CAC Act 1997 (received

2010-11 2112/11)

Rural Industries Research PIERD Act 1989 30/09/11 24/10111 8/11111 22/11111

and Development Corporation-Report for CAC Act 1997 2010-11

Sugar Research and PIERD A ct 1989 30/09/11 24/10111 9/11111 7/02/11*

Development Corporation-Report for 2010-11 CAC Act 1997 (received

13112/11)

Prescribed agencies

Australian Fisheries Fisheries 7/10/11 20/10111 29/10111 9/11/11

Management Authority- Administration Act Repo11 for 2009-10 1991

FMA Act 1997

Wheat Exports Australia - Wh eat Export 27/09111 27/09/11 14/10111 7/1l/11

Report for 2010-11 Marketing Act 2008

FMA Act 1997

269

30

Legislation Letter of Date Sent Date Tabling

l transmittal to received by date* date Minister Minister I I l Other I Australian Landcare Natural Resources 26110111 15/12/11 15/12111 28/02/12 Counci !- Report for 20 I 0- Managem ent 11 (Financial Assistan ce) Act 1992 Australian Livestock Export Australian Meat and n/a 1611111 1 18/11111 7/02/12 Corporation (LiveCorp)- Live-stock lndustJy Act Report for 2010-11 1997 Corporations Act 2001 Dairy Australia Limited- Dairy Produce Act n/a 8111111 9/11/11 7/02/12* Report for 2010-11 1986 (received C01porations Act 2001 19/12/11) National Residue Survey- National Residue n/a 30/11/11 15/12111 27/02/12* Report for 201 0-11 Survey Administration Act 1992 (received 17/02112) National Rural Advisory Rural Adjustment Act 8/11111 8/12111 8/12/11 27/02/12* Council-Report for 20 I 0- 1992 11 (received 21/02/12) *An asterisk denotes reports presented to the President out-of-session. 270

31

Infrastructure and Transport portfolio

Legislation Letter of Date Date Tabling

transmittal Sent to received by date* date Minister Minister

Prescribed agencies

Australian Transport Safety Transport Safety 28/10/11 111211 1 51 12/J 1 7/02112*

Bureau-Report for 20 I 0-11 Investigat ion Act 2003

(received

FMA Act 1997 20/12/11)

Other

Sydney Ailport D ema nd Sydney Ai1port D emand n!a 20/10/11 24/10/11 9/11111

Management Act 1997- Managernent Act 1997 quarterly report on the maximum movement limit for the period 1 July to 30 September 2011

Sydney A i1port Demand Sydney Ahport D emand n!a 27/01112 30/01 /12 28/02/12

Management Act 1997- Management Act 1997 quarterly report on the maximum movement limit for the period 1 October to 31 December 2011

*An asterisk denotes reports presented to the President out-of-session.

271

~..,

_,_

Regional Australia, Local Government, Arts and Sport portfolio

Legislation Letter of Date Date

transmittal Sent to received by date Minister Minister

Prescribed agency

National Capital A uthority - A ustrafian Cap ita! 2811011 1 12/12111 12112/11 Report for 20 I 0-11 Territory (Planning and Land Ma nagement) Act !988

Other

Australia Business Arts Cmporations Act 2001 n/a 19/10/11 24111111

Foundation Ltd- Financial Statements for the Year Ended 30 June 2011

Australian Sp01ts A ustrafian Sports n/a 2011211 1 20112111

Commission- Strategic plan Commiss ion Act 1989 2011-12 to 2014-15

272

Tabling date*

7/02/12*

(received 25/01/12)

7102112*

(received 1411211 1)

8/02/12

THE PARLIAMENT OF THE

COMMONWEALTH OF AUSTRALIA

PARLIAMENTARY PAPER No. 97 of 2012 ORDERED TO BE PRINTED

ISSN 0727-4181