NSW Audit Office - Financial Reports – 2003 - Volume 6 – Compliance Review of Accountability and

Compliance Review of Accountability and Reporting Requirements for State Owned Corporations (SOCs) Corporatisation involves establishing a government business as a separate legal corporate entity, to enable it to focus on its commercial objectives. While a State Owned Corporation (SOC) operates at arm’s length from Government, it must still be accountable to Government and other stakeholders. We reviewed how well 15 State Owned Corporations met their accountability and reporting requirements under various laws, policies and their Statement of Corporate Intent (SCI). The requirements of Government are embedded in the State Owned Corporations Act 1989 (the SOC Act), the individual SOC’s enabling legislation and in its Statement of Corporate Intent (SCI). The requirements of the annual reports and financial arrangements legislation are also applicable to SOCs, along with some Premier’s Department and Treasury policies that require SOCs to account for their performance. KEY FINDINGS Of the 15 agencies reviewed, no issues were noted at 10 agencies. 5 did not meet all their accountability and reporting requirements. Shareholder Ministers are tabling documents in Parliament more than 6 months after being finalised. While this meets SOC Act requirements to table documents in Parliament within 14 sitting days, it does not facilitate accountability on a timely basis as Parliament can have long breaks between sitting days. RECOMMENDATIONS NSW Premier’s ...