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Owner's Expectations Manual

10 Reporting and Other Expectations for Non-SOEs

Reporting and Other Expectations for Non-SOEs
Entity SOEs KiwiRail (an SOE that is a statutory corporation and not a company) TVNZ Radio NZ NZVIF Public Trust Lotteries Airport Companies (CIAL, DIAL, IAL and Hawke's Bay Airport) REANNZ Crown Fibre Holdings Health Benefits Dispute Resolution Services Limited Accident Compensation Corporation (only investment arm) Earthquake Commission Government Superannuation Fund Authority Guardians of NZ Superannuation Fund National Provident Fund
Governing legislation SOE Act, Companies Act SOE Act and New Zealand Railways Corporation Act 1981 (NZRC Act) TVNZ Act, CE Act, Companies Act RNZ Act,
CE Act, Companies Act
CE Act, Companies Act Public Trust Act (PTA), CE Act Gambling Act, CE Act Local Government Act (LGA), Companies Act ss45M to 45N PFA, CE Act, Companies Act ss45M to 45N PFA, CE Act, Companies Act ss45M to 45N PFA, CE Act, Companies Act ss45M to 45N PFA, CE Act, Companies Act Accident Compensation Act, CE Act Earthquake Commission Act (EQC Act), CE Act Government Superannuation Fund Act (GSF Act), CE Act New Zealand Superannuation Retirement Income Act (NZSRI Act), CE Act National Provident Fund Restructuring Act (NPFR Act)
Objectives and functions s4 SOE Act (see note 1 below) s4 SOE Act and s12 NZRC Act s12 TVNZ Act. Additional expectations are set out in a separate document periodically issued by the Minister of Broadcasting (see note 2 below) ss7 and 8 RNZ Act (see note 2 below) Set out in NZVIF Constitution ss 8 and 9 PTA s238 Gambling Act s59 LGA Set out in REANNZ's Constitution

Set out in Crown Fibre Holdings'

Constitution

Set out in Health Benefits' Constitution Set out in Dispute Resolution Services' Constitution s262 Accident Compensation Act s5 EQC Act s15 GSF Act s51 NZSRI Act s16 NPFR Act
Role of the board s5 SOE Act and s128 Companies Act s5 SOE Act s86 CE Act and s128 Companies Act s15 RNZ Act, s86 CE Act and s128 Companies Act s86 CE Act and s128 Companies Act s25 CE Act s25 CE Act s58 LGA and s128 Companies Act s128 Companies Act s128 Companies Act s128 Companies Act s128 Companies Act s25 CE Act s25 CE Act s25 CE Act s25 CE Act Part 2 NPFR Act
Director / member duties s5 SOE Act and director duties under Part 8 of the Companies Act s5 SOE Act and ss4, 6 and 7 NZRC Act s87 CE Act and director duties under Part 8 of the Companies Act s15 RNZ Act, s87 CE Act and director duties under Part 8 of the Companies Act s87 CE Act and director duties under Part 8 of the Companies Act s26 CE Act s26 CE Act Comply with LGA and director duties under Part 8 of the Companies Act Director duties under Part 8 of the Companies Act Director duties under Part 8 of the Companies Act Director duties under Part 8 of the Companies Act Director duties under Part 8 of the Companies Act s26 CE Act s26 CE Act s26 CE Act s26 CE Act Part 2 NPFR Act
Shareholding / responsible Ministers Minister of Finance and Minister for SOEs Minister of Finance and Minister for SOEs Minister of Finance and Minister of Broadcasting Minister of Finance and Minister of Broadcasting Minister of Finance and Minister of Economic Development Minister responsible for Public Trust (acting with the agreement of the Minister of Finance in relation to certain activities - see s7A PTA) Minister of Internal Affairs Minister of Finance and Minister for SOEs Minister of Finance and Minister of Science and Innovation Minister of Finance and Minister for SOEs Minister of Finance and Minister of Health Minister of Finance and Minister for ACC Minister for ACC Minister of Finance and Minister for Canterbury Recovery has specific delegations Minister of Finance Minister of Finance Minister of Finance
Shareholder / responsible Ministers' roles and responsibilities s6 SOE Act, and as a shareholder under Part 7 of the Companies Act s6 SOE Act s88 CE Act, and as a shareholder under Part 7 of the Companies Act s88 CE Act, s11 RNZ Act and as a shareholder under Part 7 of the Companies Act s88 CE Act, and as a shareholder under Part 7 of the Companies Act s27 CE Act s27 CE Act As a shareholder under Part 7 of the Companies Act As a shareholder under Part 7 of the Companies Act As a shareholder under Part 7 of the Companies Act As a shareholder under Part 7 of the Companies Act As a shareholder under Part 7 of the Companies Act s27 CE Act s27 CE Act,
s9 EQC Act and
ss12,16 and 17 EQC Act
s27 CE Act s27 CE Act Various approval powers under the NPFR Act
Ministerial powers of direction Under s13 SOE Act Under s13 SOE Act and s10A NZRC Act Under s27 TVNZ Act and ss107 and 147 CE Act Under s11 RNZ Act and ss107 and 147 CE Act Under ss107 and 147 CE Act Under s43 PTA and ss104, 107 and 147 CE Act Under ss242 and 263 Gambling Act and ss104, 107 and 147 CE Act n/a - Ministers do not have the power to unilaterally direct the partially owned airport companies Under s147 CE Act Under s147 CE Act

Under s147

CE Act

Under s147

CE Act

Under ss103, 107 and 147 CE Act Under ss5, 9 and 12 Earthquake Commission Act and ss103, 107, 112 and 147 CE Act s15O GSF Act
and ss103, 107, 112 and 147 CE Act
Under s64 NZSRI Act and ss104, 107 and 147 CE Act Under s64 NPFR Act
Reporting requirements Part 3 of the SOE Act and reporting requirements under the Companies Act Part 3 of the SOE Act Part 4 of the CE Act, Part 3 of the TVNZ Act and reporting requirements under the Companies Act Part 4 of the CE Act and reporting requirements under the Companies Act Part 4 of the CE Act and reporting requirements under the Companies Act Part 4 of the CE Act Part 4 of the CE Act Part 5 of the Local Government Act 2002 and reporting requirements under the Companies Act ss139, 150 and 153 CE Act and reporting requirements under the Companies Act ss139 and 150 CE Act and reporting requirements under the Companies Act ss139, 150 and 153 CE Act and reporting requirements under the Companies Act ss139, 150 and 153 CE Act and reporting requirements under the Companies Act Part 4 of the CE Act and Part 7 of the Accident Compensation Act Part 4 of the CE Act Part 4 of the CE Act Part 4 of the CE Act ss67 and 68 NPFR Act
Expectations letters Sent by Ministers between October and January Sent by Ministers between October and January Sent by Ministers between October and January Sent by Ministers between October and January Sent by Ministers between October and January Sent by Ministers between October and January Sent by Ministers between October and January Sent by Ministers between October and January. COMU consults with City Holding Companies on these Sent by Ministers between October and January Sent by Ministers between October and January Sent by Ministers between October and January Sent by Ministers between October and January Yes Yes Yes (FYI only)
Boards submit strategic issues letters By 28 February By 28 February By 28 February By 28 February By 28 February By 28 February By 28 February By 28 February By 28 February By 28 February By 28 February By 28 February No No No
Business plan and draft SCI / SOI (see note 3 below) Submitted by end of May (s14(1) SOE Act), but Ministers' preference is to receive this by end of April Submitted by end of May (s14(1) SOE Act), but Ministers' preference is to receive this by end of April Submitted by end of May (s146 CE Act), but Ministers' preference is to receive this by end of April (see note 4 below) Submitted by end of May (s146 CE Act), but Ministers' preference is to receive this by end of April (see note 4 below) Submitted by end of May (s146 CE Act), but Ministers' preference is to receive this by end of April (see note 4 below) Submitted by end of May (s146 CE Act), but Ministers' preference is to receive this by end of April (see note 4 below) Submitted by end of May (s146 CE Act), but Ministers' preference is to receive this by end of April (see note 4 below) Submitted by 1 March - clause 2, Schedule 8 LGA Submitted by end of May (s146 CE Act), but Ministers' preference is to receive this by end of April (see note 4 below) Submitted by end of May (s146 CE Act), but Ministers' preference is to receive this by end of April (see note 4 below) Submitted by end of May (s146 CE Act), but Ministers' preference is to receive this by end of April (see note 4 below) Submitted by end of May (s146 CE Act), but Ministers' preference is to receive this by end of April (see note 4 below) Draft SOI Draft SOI No
Content of draft SCI / SOI ss14(2) and (3) SOE Act ss14(2) and (3) SOE Act s141 CE Act and s23 TVNZ Act s141 CE Act s141 CE Act s141 CE Act s141 CE Act s64 and clause 9, Schedule 8 LGA s45N PFA and s141 CE Act s45N PFA and s141 CE Act s45N PFA and s141 CE Act s45N PFA and s141 CE Act s141 CE Act and s272 Accident Compensation Act s141 CE Act s141 CE Act s141 CE Act No
Expectation that entity will consider separately defining “core” and “non-core” business in its SCI / SOI (refer to Section 5.5.1) Yes Yes No No No No No No No No No No No No No No No
Boards consider Ministers' comments on draft SCI / SOI By 16 June - s14(4) SOE Act By 16 June - s14(4) SOE Act By 16 June - s146 CE Act By 16 June - s146 CE Act By 16 June - s146 CE Act By 16 June - s146 CE Act By 16 June - s146 CE Act By 1 May - clause 3(a), Schedule 8 LGA By 16 June - s146 CE Act By 16 June - s146 CE Act By 16 June - s146 CE Act By 16 June - s146 CE Act By 16 June - s146 CE Act By 16 June - s146 CE Act By 16 June - s146 CE Act By 16 June - s146 CE Act N/A
Boards deliver final SCI / SOI On or before 1 July (or such later date as shareholding Ministers determine) - s14(4) SOE Act On or before 1 July (or such later date as shareholding Ministers determine) - s14(4) SOE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 30 June (note that extensions cannot be granted) - clause 3(b), Schedule 8 LGA On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act On or before 1 July (note that extensions cannot be granted) - s146 CE Act N/A
Quarterly reports expected by Ministers (refer to Section 5.6.1) Yes - within one month after the end of each quarter Yes - within one month after the end of each quarter Yes - within one month after the end of each quarter. Additional reporting requirements are specified in the funding memorandum with the Minister of Broadcasting Yes - within one month after the end of each quarter. Additional reporting requirements are specified in the funding memorandum with the Minister of Broadcasting Yes - within one month after the end of each quarter Yes - within one month after the end of each quarter Yes - within one month after the end of each quarter Yes - within one month after the end of each quarter Yes - within one month after the end of each quarter Yes - within one month after the end of each quarter Yes - within one month after the end of each quarter Yes - within one month after the end of each quarter Yes - Investment returns to the Treasury Yes - Investment returns to the Treasury Yes - Investment returns to the Treasury Yes - Investment returns to the Treasury No

Half-yearly reports

(refer to Section 5.6.2)

By 28 February, including such information as required by the SCI - s16 SOE Act By 28 February, including such information as required by the SCI - s16 SOE Act Half-year financial statements are required by 28 February - s24 TVNZ Act N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the company By 28 February, including such information as required by the SOI - s66 LGA N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the Crown entity N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the company N/A - can be prepared at the discretion of the company
Annual report By 30 September - s15 SOE Act By 30 September - s15 SOE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act Within 3 months after the end of each financial year - s67 LGA By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act. Also required to prepare an Annual Financial Condition Report under s278A Accident Compensation Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act By no later than 15 working days from receipt of the audit report of the Auditor General (which must be provided within 4 months from the end of each financial year) - s150 CE Act Within 6 months after the end of each financial year - s67 NPFR Act
Content of annual report s15 SOE Act and s211 Companies Act s15 SOE Act s151 CE Act, s22 TVNZ Act and s211 Companies Act s151 CE Act and s211 Companies Act s151 CE Act and s211 Companies Act s151 CE Act s151 CE Act ss68 and 69 LGA and s211 Companies Act s151 CE Act and s211 Companies Act s151 CE Act and s211 Companies Act s151 CE Act and s211 Companies Act s151 CE Act and s211 Companies Act s151 CE Act and s278 Accident Compensation Act s151 CE Act s151 CE Act s151 CE Act s67 NPFR Act
Ministers table SCI / SOI, half-yearly report and annual report Within 12 sitting days of receipt - s17 SOE Act Within 12 sitting days of receipt - s17 SOE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act N/A. While there is no legal requirement to do so, these documents are generally tabled by Ministers Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act Within 5 working days of receipt - ss149 and 150 CE Act As soon as practicable after receipt - s67 NPFR Act
Publication of SCI / SOI, half-yearly report (if applicable) and annual report by entity Shareholding Ministers expect the SCI, half-yearly report and annual reports to be published as soon as practicable following tabling Shareholding Ministers expect the SCI, half- yearly report and annual reports to be published as soon as practicable following tabling As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act Board must publish SOI within one month of date of receipt by Ministers (Schedule 8, cl. 7 LGA) and annual report within 3 months after the end of each financial year (s67 LGA) As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act As soon as practicable following tabling and no later than 10 working days after receipt by Minister - ss149 and 150 CE Act N/A
Encourage use of value-based reporting (eg, EVA®) (refer to Section 7.3) Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes N/A N/A N/A N/A No
Expectation of BBB (flat) credit rating, unless good reason for alternative benchmark (refer to Section 7.6) Yes Yes Yes No No No No Yes No No No No N/A N/A N/A N/A N/A
Expectation that entity will have an explicit disclaimer of Crown guarantee for borrowings (refer to Section 7.7.1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes N/A N/A N/A N/A N/A
Expectation that entity will not engage in overly aggressive tax planning activities (refer to Section 7.7.3) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes N/A Yes. EQC is exempt from income tax Yes Yes N/A
Expectation that SCI / SOI will specify matters on which the entity will consult with shareholding / responsible Ministers (refer to Section 8.1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes N/A No No No N/A
Expectation that entity will act in a socially responsible manner (refer to Chapter 6) Yes (s4 SOE Act) Yes (s4 SOE Act) Yes (s12 TVNZ Act) Yes (s8 RNZ Act) Yes (but no statutory reference) Yes (s9 PTA and see also s50 CE Act) Yes - no express statutory reference, but see s50 CE Act. Yes (s59 LGA) Yes (but no statutory reference) Yes (but no statutory reference) Yes (but no statutory reference) Yes (but no statutory reference) Yes N/A Yes (but no statutory reference) Yes No
Expectations re appearances before select committees (refer to Section 5.8.1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No
Restrictions on financial powers No Yes (Part 3 NZRC Act and SOE Act) Yes (ss158 to 164 CE Act) Yes (ss158 to 164 CE Act) Yes (ss158 to 164 CE Act) Yes (ss158 to 164 CE Act) Yes (ss158 to 164 CE Act) Yes (ss62 and 63 LGA) Yes (ss45M and 45N PFA) Yes (ss45M and 45N PFA) Yes (ss45M and 45N PFA) Yes (ss45M and 45N PFA) Yes (ss45M and 45N PFA) Yes (ss45M and 45N PFA)

Yes (ss15B and 15CGSF Act and ss45M and 45N PFA) Yes (s50 NZSRI Act and ss45M and 45N PFA) N/A
Subject to Official Information Act 1982 (see note 5 below) Yes Yes Yes Yes Yes Yes Yes No - but subject to the Local Government Official Information and Meetings Act 1987 Yes Yes Yes Yes Yes Yes Yes Yes No
Applicability of State Services Commission's "State Servants, Political Parties and Elections: Guidance for the 2011 Election Period" (see note 6 below) No - but the principles still apply No - but the principles still apply Yes Yes Yes Yes Yes No - but the principles still apply Yes Yes Yes Yes Yes Yes Yes Yes No

Notes

  1. Learning Media Limited's principal objective is set out in s331 of the Education Act 1989 but this does not limit s4 of the SOE Act.

  2. Television New Zealand and Radio New Zealand also have certain duties as “Lifeline Utilities” under the Civil Defence Emergency Management Act 2002.
  3. From 2009/10 Ministers encourage Crown entities funded by the Crown to prepare their SOIs earlier than required under the CE Act, in order to enable the tabling of SOIs on the day after the 2009 Budget unless this is not practicable.
  4. The SOI may be submitted later if the Crown's Budget is introduced later than 30 days before the start of the Crown entity's financial year (s146(2)(a)(ii) CE Act).
  5. For guidance on how to respond to OIA requests, refer to the Ombudsmen's guidelines at http://www.ombudsmen.parliament.nz
  6. Refer to the State Services Commission's guidance at http://www.ssc.govt.nz

Crown Research Institutes

  • CRIs are established by the Crown Research Act 1992 and are Crown-owned companies, or Crown entity companies, whose purpose is to carry out scientific research for the benefit of New Zealand. CRIs are not fully commercial but need to ensure appropriate commercial disciplines are applied while their scientific purposes are fulfilled. As Crown entity companies, ownership must remain 100% with the Crown.
  • Ministry of Science and Innovation (MSI) now has the lead responsibility for monitoring CRIs[8]. MSI has published guidance for these entities titled the CRI Toolkit: Guidelines for CRI Governance, Reporting and Relationships which outlines the broad accountability and performance framework in which CRIs operate. The toolkit can be found on the MSI website.

Notes

  • [8]Although not a CRI, REANNZ will also be monitored primarily by the MSI.
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