Review of Commonwealth Government Business Enterprises ...
Review of Commonwealth Government Business Enterprises ...
Review of Commonwealth Government Business Enterprises ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Proposed Change: (Replaces entire 2.1)<br />
2.1 3.3 Corporate plans are to be prepared in accordance with the appropriate section <strong>of</strong> the<br />
CAC Act and Corporations Act (refer summary at paragraph 3.1).<br />
a. To supplement the information required to be provided in GBE corporate plans under<br />
the CAC Act and the Corporations Act, the plans should include details <strong>of</strong> the following<br />
matters (so far as they are applicable):<br />
i. details <strong>of</strong> the broad mandate <strong>of</strong> the GBE, (including a summary <strong>of</strong> core activities<br />
that are in line with existing core competencies, and proposed non-core activities<br />
that require new competencies to be developed), together with a summary <strong>of</strong><br />
those functions that may require its retention as a government owned GBE;<br />
ii. an estimate <strong>of</strong> the current commercial value <strong>of</strong> the <strong>Commonwealth</strong>’s investment in<br />
the GBE and how that value was assessed, with the expectation that a discounted<br />
cash fow methodology would be used as the valuation basis, unless otherwise<br />
agreed by the Finance Minister;<br />
iii. fnancial projections, to be prepared in the same format as the progress and<br />
fnal report and consisting <strong>of</strong> pr<strong>of</strong>t and loss statement, balance sheet and cash<br />
fow statement;<br />
iv. capital expenditure projections linked to the physical assets <strong>of</strong> the GBE (where<br />
material), its business objectives and acquisition, maintenance and disposal plans;<br />
v. cash fow (liquidity) projections;<br />
vi. a summary <strong>of</strong> the GBE’s risk management policies, material risks and strategies<br />
for managing these risks. This is in addition to the requirements set out in<br />
paragraph 4.15 (refer guidance in Part 4 Financial Governance); and<br />
vii.proposed borrowing(s) (refer guidance in Part 4 Financial Governance).<br />
b. If the GBE has a subsidiary (or subsidiaries), the reporting is to cover both the GBE<br />
and its subsidiaries.<br />
c. GBEs are to incorporate targets for the following minimum key performance indicators<br />
(KPIs) across a fve-year period (two prior years and three forward years) in corporate<br />
plans, and if appropriate results are to be reported in quarterly progress reports as<br />
outlined in the table below:<br />
Exposure Draft<br />
21