The Senate ––––––––––––––––––––––––––––––––––––––––––––––––– Foreign Affairs, Defence and Trade Committee ––––––––––––––––––––––––––––––––––––––––––––––––– Annual reports (No. 1 of 2008) March 2008 © Commonwealth of Australia ISBN 978–0–642–71893–8 This document is produced from camera–ready copy prepared by the Senate Standing Committee on Foreign Affairs, Defence and Trade secretariat, and printed by the Senate Printing Unit, Parliament House, Canberra. ii The committee Senator Mark Bishop, ALP, WA (Chair) Senator Russell Trood, LP, Qld (Deputy Chair) Senator Mathias Cormann, LP, WA Senator Michael Forshaw, ALP, NSW Senator John Hogg, ALP, Qld Senator Hon Sandy Macdonald, NATS, NSW Senator Anne McEwen, ALP, SA Secretariat Dr Kathleen Dermody, Secretary Ms Pamela Corrigan, Research Officer Parliament House Canberra ACT 2600 Phone: (02) 6277 3535 Fax: (02) 6277 5818 e–mail: [email protected] Internet: http://www.aph.gov.au/senate_fadt iii Contents The committee ................................................................................................... iii Preface..................................................................................................................1 Introduction ............................................................................................................1 Role of annual reports ............................................................................................2 Assessment of annual reports .................................................................................2 Annual reports considered......................................................................................3 Defence portfolio .............................................................................................3 Foreign Affairs and Trade portfolio ................................................................3 General comments on the annual reports ...............................................................3 Timeliness in tabling reports ...............................................................................3 Comments made in the Senate ............................................................................3 Matters of significance ........................................................................................4 Bodies not presenting annual reports to the Senate.............................................4 Standard of reports ..............................................................................................4 Chapter 1—Annual reports of departments ....................................................5 Department of Defence...........................................................................................5 Military justice system ........................................................................................5 Significant matters relating to the operations and performance of the department ...........................................................................................................5 Defence's financial statements.........................................................................5 A history of qualified financial statements......................................................6 Financial statements for year ending 2006–2007 ............................................7 Summary..............................................................................................................8 Department of Foreign Affairs ...............................................................................8 Reporting public diplomacy ..............................................................................10 Summary............................................................................................................11 Department of Veterans' Affairs...........................................................................11 v Chapter 2—Annual reports of statutory and non–statutory authorities and government companies..............................................................................13 Defence portfolio ..................................................................................................13 The Army and Air Force Canteen Service [trading as Frontline Defence Services]..............................................................................................13 Australian War Memorial..................................................................................15 Other reports......................................................................................................16 Foreign Affairs and Trade portfolio.....................................................................16 Australian Agency for International Development (AusAID)..........................16 Australian Trade Commission (Austrade).........................................................19 Other reports......................................................................................................20 Appendix 1—Annual reports referred to the Committee.............................21 Defence portfolio ..................................................................................................21 Departments.......................................................................................................21 Statutory authorities...........................................................................................21 Non–statutory authorities and government companies .....................................21 Foreign Affairs and Trade portfolio.....................................................................22 Department ........................................................................................................22 Statutory authorities...........................................................................................22 Non–statutory authorities and government companies .....................................22 Appendix 2—Compliance table of the annual reports referred to the Committee for scrutiny for the period 2006–2007.........................................23 Appendix 3—Reporting requirements and guidelines..................................29 Departmental reports ............................................................................................29 Authority for requirements................................................................................29 Commencement and reporting period ...............................................................29 Application.....................................................................................................29 Timetable...........................................................................................................30 Commonwealth authorities and companies..........................................................30 Non–statutory bodies............................................................................................31 vi Preface Introduction 1. The committee is responsible for examining annual reports of departments and agencies within two portfolios: Defence (including the Department of Veterans' Affairs), and Foreign Affairs and Trade.1 2. Under Standing Order 25(20), the committee is required to report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on reports tabled by 30 April each year by the tenth sitting day after 30 June of that year. 3. The standing order states: Annual reports of departments and agencies shall stand referred to the committees in accordance with an allocation of departments and agencies in a resolution of the Senate. Each committee shall: a) Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory; b) Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration; c) Investigate and report to the Senate on any lateness in the presentation of annual reports; d) In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate; e) If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates; f) Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year; g) Draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and h) Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports. 1 See Appendix 1 for a list of all departments and agencies under these portfolios. 2 Preface 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