Territory Stories

9.1 The Board’s Strategic Directions 2016-2020 May 2016

Details:

Title

9.1 The Board’s Strategic Directions 2016-2020 May 2016

Other title

Tabled paper 1883

Collection

Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT

Date

2016-06-23

Description

Deemed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

Publisher name

PowerWater

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C01846

Parent handle

https://hdl.handle.net/10070/269368

Citation address

https://hdl.handle.net/10070/436012

Page content

4.4.2 Governance and management shortfalls Undoubtedly there are factors unique to operating in the Northern Territory that distinguish it from others and arguably result in higher input costs. However, the Board is not confident that these factors are the sole reason (or justification) for Power and Water's under-performance and higher cost base. The Board holds this view in large part because of long-time planning, controls and accountability Table 4.1: Current operating shortfalls Financial integrity Description There is an inadequate level of integrity in the: recording and processing of data reporting of financial results duplication and/or conflicting data sources lack of follow-through on actioning key finance processes. shortfalls that have become increasingly apparent since structural separation. As revealed in the following discussion, these shortfalls are deep-seated problems inhibiting proper business operations and undermining performance outcomes significantly. It would be extraordinary if these shortfalls coexisted with efficient spending levels. The items listed in Table 4.1 below are symptomatic of the issues identified. Example of gaps Annual accounts for 2014-15 have taken at least 9 months for audit sign-off. There is no single source of truth for all financial data across systems. Financial systems do not have complete process controls on separation of duties. Fixed asset data is not fully integrated/linked to asset management records. A significant amount of capital expenditure remains un-capitalised. Corporate financial modelling is insufficient to track and provide insight into future financial scenarios. Planning Limited top-down, integrated company planning. Measurable targets or benefits of planning initiatives are inadequately stated or tracked. Substantial activity is undertaken and resources consumed, but with limited focus on benefit realisation. Business unit plans are not fully integrated or linked to common Corporation strategy. No over-arching prioritisation of resources and costs. No review of promises in previous year. Reporting Too much focus on reporting detail and providing commentary describing 'input' activities in great volume. This approach hides key outcomes, trends and risks, and results in monitoring of business performance having an inputs and not a results focus. Board reporting often exceeds 500 pages per meeting. Lack of top-down cascading KPIs with performance trends highlighted. Lack of exceptions clearly highlighted. Lack of timely and relevant information. Accountability The Corporation structure diffuses model accountability between Corporate and Business Units. Personal accountability at the senior management level is not clear. The lack of accountability impedes business improvement. Inadequacies in budgeting, planning and reporting (detailed above) inhibit measurement of group and personal outcomes. There is significant activity undertaken that is not assessed for value added outcomes. THE BOARD'S STRATEGIC DIRECTIONS 2016-2020 20


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