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Owner's Expectations Manual

5 SOE Reporting and Accountability

  • Part 3 (Accountability) of the SOE Act provides a comprehensive outline of SOE requirements with regard to its key accountability document – the SCI – and reporting performance to shareholding Ministers and the wider public, through the House of Representatives.
  • This section summarises the reporting requirements under the SOE Act, and outlines shareholding Ministers' other reporting expectations and how this works in practice. It also addresses SOEs' accountability to the House of Representatives through select committees. In the figure below, the performance cycle and the roles of the board and COMU are illustrated. For information on what COMU does at each stage, refer to the COMU website.
Performance Cycle
Performance Cycle.
  • Refer to Chapter 10 for reporting requirements and expectations of non-SOE companies and entities that COMU monitors.

5.1 The business planning process

  • The business planning process, which culminates in boards delivering a final SCI to shareholding Ministers, is critical to maintain a strong and mutually supportive relationship between the shareholder and the company.
  • Most companies have a 30 June financial year. The following outlines the key steps in the business planning round for SOEs. A table of key reporting dates is set out in Section 5.6.4.
  • In the figure on the previous page, the innermost concentric circle illustrates the different stages of the strategic planning process.

5.2 Expectations letter

  • Shareholding Ministers aim to send an expectations letter to each SOE board between October and January of each financial year detailing the information requirements, the timing and any specific issues the company is expected to address during the business planning round.
  • In response to the expectations letter, the board may send a strategic issues letter to the shareholding Ministers by the end of January, outlining major issues the company expects to address during the business planning round.
  • Subject to commercial sensitivities, the expectations letters are publicly released on the COMU website.
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