Review of Commonwealth Government Business Enterprises ...

3.4.7 The focus on comparing budgeted and corporate plan forecasts with quarterly results
would not only allow the Shareholder Minister(s) to understand how the performance of
the GBE has compared with its intentions at the start of the planning period, but would
also provide a general indication of its accuracy in forecasting. Notwithstanding this focus,
and consistent with current practice, those GBEs providing revised forecasts for the full
year could continue to provide this information to indicate how their evolving business
environment will impact on full year results.
3.4.8 Finance understands that GBEs periodically re-forecast their year-end outturn, depending of
performance against budget during the year. Accordingly, Finance is seeking to strengthen
the GBE Guidelines to refect the reporting of these re-forecasts to ensure the changes are
captured and explained in the quarterly reports.
3.4.9 Finance considers that reports should at a minimum include analysis of the GBE’s
performance against its broader corporate plan objectives (including its KPIs and
operational performance targets/forecasts) during the period, along with explanations for
any changes to corporate plan objectives. 35
3.4.10 In addition, Finance considers that reports should include commentary on any emerging
issues or changes to risk factors that might have a material impact on the GBE’s
performance for the rest of the fnancial year and/or into the future.
Proposed Change:
2.8 3.10 Confdential six monthly reports (or quarterly reports, as agreed from time to time
by the Shareholder Ministers) quarterly progress reports are to be provided by the
Chair directors of a wholly owned GBE to the Shareholder Minister(s) on progress
against, and any changes to, the corporate plan. one month after the period end. The
minimum requirement for progress reports is that they should include:
a. analysis of the GBE’s quarterly and year-to-date performance against corporate plan
forecasts for the corresponding period, including detailed analysis of revenue and
expense (including capital expenditure) performance for the period and explanations
for deviations from corporate plan forecasts;
a b. progress reports include fnancial statements, the format of which is approved by the
Finance Minister;
c. analysis of the GBE’s performance against its broader corporate plan objectives
(such as its KPIs and operational performance targets/forecasts where relevant)
including any major achievements during the period along with explanations for any
changes to strategies;
d. commentary on any emerging issues and risks or changes to risk factors that might
have a material impact on performance. Details of strategies for managing any
material risks that were not identifed in the corporate plan should also be provided.
This is in addition to the requirements set out in paragraph 4.15 below;
e. a clear statement of the GBE’s outlook for the rest of the fnancial year in terms
of meeting its full year re-forecast outturn, key risks and opportunities arising and
management plans; and
Exposure Draft
f. commentary on progress in meeting CSOs (where relevant).
35 Refer also to the New Zealand COMU State Owned Enterprise Guidelines (SOE Reporting and Accountability);
http://www.comu.govt.nz/about-comu/accountability/
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