11.6 Reporting requirements
Part 11 of the GOC Act deals with reports and other accountability matters. The provisions of the Financial Administration and Audit Act 1977 (external link) (the FAA Act) apply to all statutory GOCs, while only certain provisions apply to company GOCs.
The FAA Act provisions relating to audit and the provision of reports to the appropriate Minister and the tabling of reports have been applied to company GOCs.
Generally, a GOC's Board must give to the shareholding Ministers a report on the operations of the GOC and its subsidiaries for each quarter of a financial year.
The annual report of a GOC is to comply with the provisions of section 131 of the GOC Act. Briefly the annual report must:
- contain information to enable the shareholding Ministers to make an informed assessment of the operations of the GOC including a comparison of the performance of the GOC with its statement of corporate intent;
- state the GOC's dividend policy for the financial year to which the report relates;
- include the statement of corporate intent for the relevant financial year and any modifications made;
- include particulars of any directions and notifications given to the GOC's Board by the shareholding Ministers; and
- include particulars of the impact on the financial position, profits and losses and prospects of the GOC of any modifications to the statement of corporate intent and any directions and notifications given by shareholding Ministers.
Each annual report of the GOC must also state whether or not, in the directors' opinion, there are, when the statement is made, reasonable grounds to believe that the GOC will be able to pay its debts as and when they fall due. For company GOCs, the report must also include the matters that are required to be included in, or accompany, the GOC's annual return under the Corporations Act 2001 (external link).
A GOC's board also has a positive obligation to keep shareholding Ministers reasonably informed of the operations, financial performance, financial position and any other matter which may be required.
GOC Boards should also keep shareholding Ministers informed about key developments relating to any subsidiaries, controlled entities or investments its corporation maintains. For proposed new GOC subsidiaries or investments, shareholding Ministers will set pre-conditions before any approval takes place. This will particularly be in respect of remuneration, audit and reporting arrangements.
A formal policy on GOC Investments and Audit and Reporting Requirements for GOC Controlled Entities and Investments will be released in 2002.
Responsibilities of Shareholding Ministers
The departments of shareholding Ministers are responsible for:
- negotiating outcomes of the annual performance contract or Statement of Corporate Intent as well as the five-yearly Corporate Plan;
- monitoring the commercial performance of GOCs and determining dividend payments;
- assessing major investment proposals;
- facilitating the appointment of GOC Boards of Directors; and
- ensuring GOC compliance with relevant Queensland Government policies.
Timely flow of information
The flow of information to the shareholding Minister required under the GOC Act should be timely to allow for consideration prior to a decision being required. Section 133 of the GOC Act states that a Board must keep shareholding Ministers informed of operations and financial performance.
Justification of decisions
It is accepted that decisions of GOCs may have a direct and appreciable impact on the community. To enhance public accountability of GOCs, when such decisions are made GOCs should be in a position to publicly justify and explain the decisions.
Sensitive issues
The Chair of the GOC should apprise the relevant shareholding Minister of sensitive or potentially contentious issues as appropriate.
Last reviewed: 17 July, 2009
Last updated: 22 July, 2009
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