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Annual Report of the Treasury for the Year Ended 30 June 2014

Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure appropriate financial and social returns, and long-term value is achieved from SOEs, Crown entity companies (CECs) and Crown entities monitored under this appropriation.

Scope of Appropriation

This appropriation is limited to the provision of ownership, performance monitoring and governance advice to the Minister for State-Owned Enterprises and other responsible Ministers in respect of the Ministers' shareholding responsibilities or as responsible Ministers for the New Zealand Lotteries Commission and Public Trust.

Significant Work Completed

During 2013/14, the Treasury:

  • provided Quarterly Reports on the performance of SOEs, Crown entities and other monitored entities to ownership Ministers. To achieve this, we engaged with monitored agencies, provided advice on strategy and planning documentation and ensured compliance with statutory requirements for Statements of Intent (SOIs), Statements of Corporate Intent (SCIs) and Purchase Agreements of monitored entities
  • provided advice to Ministers on the completion of strategic reviews for the New Zealand Post Group, Quotable Value, Landcorp Farming, KiwiRail and Public Trust
  • commissioned independent valuation reports for a number of entities in the commercial portfolio and made these publicly available via:
  • continued and extended the tailored Crown director development programme to improve governance knowledge and capability
  • provided advice and support on Solid Energy's financial situation
  • assessed KiwiRail's bid for funding ahead of Budget 2014 and recommended a comprehensive review of the business be undertaken to assess the likely future funding requirements for the business ahead of Budget 2015, and
  • facilitated the managed wind-down of Learning Media, following the decision to wind down this company on the basis that it was no longer commercially viable.
Performance Measure Target for 2013/14 Performance for 2013/14 Forecast for 2014/15
Board appointments completed for SOEs' directors and directors for other entities. 53 SOEs' directors and 52 directors/board members for other entities 59 SOEs' directors and 62 directors/board members for other entities. This includes appointments and reappointments.  38 SOEs' directors and 29 directors/board members for other entities
Technical quality of operational advice papers regarding ownership, performance monitoring and governance as assessed through the general Treasury policy advice quality assessment process. At least an average of 70% Achieved - Average of 70% At least an average of 70%

APR produced, which enables assessment of Crown company and CFI performance.

NB: The Treasury applies a random sampling approach to assess the technical quality of the operational and policy advice it provides the Government. This process will ensure that at least one stream of operational advice from the Crown Ownership Monitoring Unit (COMU) is selected.

Achieved Achieved Achieved
Crown Company Monitoring Advice to the Minister for State-Owned Enterprises and Other Responsible Ministers 2014
Main Estimates
Supp. Estimates
Unaudited Forecast as per BEFU 2014
3,318 Expenses 5,154 4,042 5,506 4,508

Funded by:

3,318 Revenue  Crown 5,146 4,042 5,506 4,508
  - Other revenue   8   -   -   -

Expenditure is $352,000 under the Supplementary Estimates budget owing to staff vacancies and minor delays in strategic reviews.

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