1 Process and production of the annual report
1.1 Roles and responsibilities
Statutory requirement - Section 150(1) of the CEA:
(1) A Crown entity must—
(a) at the end of each financial year, prepare and report on the affairs of the Crown entity; and
(b) provide the report to its responsible Minister no later than 15 working days after receiving the audit report provided under section 156.
(2) However, in the case of a Crown entity group,—
(a) the parent Crown entity must prepare an annual report on the affairs of the Crown entity group; and
(b) no other member of the Crown entity group needs to prepare an annual report.
Crown entities are required to prepare an annual report.
1.1.1 Responsibility of the Crown entity board
Statutory requirement: Section 151(3) of the CEA:
(3) An annual report must be in writing, be dated, and be signed on behalf of the board by 2 members, or, in the case of a corporation sole, by the sole member.
Under section 150 of the CEA, the obligation to prepare an annual report is on the Crown entity, which in practice means the board. The expectation that boards are involved in the annual report process is reflected by the requirement that the annual report is signed and dated by two of the Crown entity's board members (or by the member of a corporation sole). This requirement can be met by having the board members sign and date a simple statement to the effect that they are pleased to present the annual report of the Crown entity, though normally the statement would also provide an overview of the Crown entity’s achievements and challenges during the financial year.
Statutory requirement: section 155(d) of the CEA:
The statement of responsibility must—…
(d) be dated and signed on behalf of the board by 2 members, or, in the case of a corporation sole, by the sole member.
Two board members must sign the statement of responsibility, which is an explicit and detailed statement of the board's responsibility for the annual financial statements and the statement of service performance (non-financial performance).
The board's collective duties
Statutory requirement: Section 50 of the CEA:
The board of a statutory entity must ensure that the statutory entity performs its functions efficiently and effectively and in a manner consistent with the spirit of service to the public.
Statutory requirement: Section 51 of the CEA:
The board of a statutory entity must ensure that the entity operates in a financially responsible manner and, for this purpose, that it
(a) prudently manages its assets and liabilities; and
(b) endeavours to ensure -
(i) its long-term financial viability; and
(ii) that it acts as a successful going concern.
Two of a board's collective duties are that the Crown entity's functions must be performed efficiently, effectively and consistently with the spirit of service and that the Crown entity must operate in a financially responsible manner. The annual report is one way a board can demonstrate how it is meeting these collective duties.
