Human rights commission head is under fire over a financial crisis

The Australian Human Rights Commission finances are being restructured, after $16m in extra federal funding was needed.

Australian Human Rights Commission president Rosalind Croucher appears before a Senate estimates committee. Picture: Kym Smith

Australian Human Rights Commission president Rosalind Croucher has presided over a ­financial crisis that required a $16m federal government bailout to keep the agency solvent.

“The buck stops with me as ­accountable authority,” Professor Croucher told a Senate estimates hearing on Tuesday.

“I have acknowledged that in the public papers of the commission and to my commissioner colleagues and to all the staff.”

Professor Croucher, who is ­almost five years into her seven-year term and has a salary package of about $480,000, said she would not be stepping down.

“I want to ensure that it doesn’t happen again and that all the controls are absolutely in place to support the commissioners in their work to support the commission,” she said.

She had become aware of the extent of the crisis in June last year and it became apparent that an unaffordable number of staff had been hired, so there would have to be redundancies.

The Attorney-General’s ­Department and the Department of Finance had stepped in to work with the commission to sort out ­issues, including its cash forecasting, and financial management system which had not until then been fit for purpose.

This work had also revealed that underlying funding for the agency was insufficient for it to ­execute its duties to a high enough standard. The commission’s operating funding for 2022-23 is $29.9m. The $16m injection was confirmed in the mid-year economic forecast in December.

“We can discharge our functions to a very minimal level,” Professor Croucher said. “There’s a big difference between being able to say hand on heart, can we discharge our functions – well, maybe. But … if we’re going to be a fully functioning independent ­national human rights institution, then it is inadequate for that.”

Legal and constitutional affairs legislation committee chair Sarah Henderson said she was shocked that the president had only ­become aware of the crisis in June and accused her of not being transparent when she last ­appeared before the committee in February.

“None of these issues was raised,” Senator Henderson said. “And I do put to you very strongly that I am concerned that you weren’t transparent when you last appeared before us.”

Professor Croucher said she had not raised the issue because the commission’s annual report had not yet been released, but said she had directly answered all questions put to her and there had been “no obfuscation”.

Senator Henderson said she was “now concerned that the forecast in the budget estimates may not be accurate because of the commission’s failure to stick to its budget”.

Professor Croucher said the commission now had a “very good picture as to what our budget components are going forward”.

The Australian ­National Audit Office’s independent report within the commission’s annual report said there was ­“material uncertainty as to whether the commission will be able to establish a sustainable funding model and therefore whether it will be able to realise its assets and settle its ­liabilities in the ordinary course of business and at the amounts ­stated”.