Endeavour Energy Annual Performance Report - Parliament of New ...

Australian Financial
Services Licence
Prior to the retail sale, Integral Energy
held an Australian Financial Services
Licence effective from 1 July 2005.
The licence authorised Integral Energy
to provide financial advice, deal and/
or make a market in financial products
and miscellaneous financial products
to wholesale clients.
Oversight of licence compliance was
conducted by the Financial Services
Governance Committee, which reported
to the Retail Risk Board Committee
monthly. The Committee met eleven
times in 2010–11 and reported ongoing
licence compliance to the Retail Risk
Board Committee. Other statutory
responsibilities included:
• Compliance by the organisation
with the licence conditions and to
inform the Australian Securities
and Investments Commission
of any reportable breaches of
the licence conditions within
ten working days. No potential
licence breaches were identified
during 2010–11.
• Oversight by the Financial Services
Governance Committee of
compliance with the organisation’s
Anti-Money Laundering and
Counter-Terrorism Financing
Program as required under
Commonwealth legislation.
The impact of the retail sale meant
that Endeavour Energy was no longer
required to hold an Australian Financial
Services Licence. An agreement was
entered into with Origin Energy to
act as intermediary for the purpose
of undertaking residual financial
services activities relating to energy
derivatives. The Australian Securities and
Investments Commission on 30 June 2011
approved Endeavour Energy’s
application to cancel the licence.
Similarly, the ongoing requirement
for Endeavour Energy to maintain its
Anti-Money Laundering and Counter-
Terrorism Financing Program ceased on 1
March 2011. This was because Endeavour
Energy ceased to be in the business of
issuing derivatives and therefore was
no longer a Reporting Entity under
Commonwealth requirements.
Community grants
Endeavour Energy does not grant funds
to non-government organisations.
Instead, the organisation lends support
to selected community organisations that
reflect Endeavour Energy’s obligations as
a state-owned corporation and align to
Endeavour Energy’s Corporate Plan.
The organisation’s community
partnership strategy and criteria are
available at www.endeavourenergy.com.
au. Examples of the organisations that
met the criteria in 2010–11 can be found
on page 34.
Credit card certification
Endeavour Energy’s corporate and
purchasing card program is governed
by approved policies and procedures
that were developed having regard to
the Treasury Circular 05/06 Credit card
Use – Best Practice Guide published
in August 2005 (originally published in
1999), Treasurer directions and Premier’s
memoranda.
Consultants
In 2010–11, Endeavour Energy engaged four consultants for major projects (equal to or greater than $50,000) totalling $1.74 million,
as detailed below:
Consultant Purpose Cost $m
KPMG
McLachlan Lister Pty Limited
Langdale Consultants Pty
To provide technical consulting on the strategic procurement review;
To provide technical consulting on the Time & Attendance improvement
project and payroll review 1.18
To provide technical support in the network organisational review to facilitate
delivery of the Strategic Asset Management Program (SAMP) 0.38
To provide technical consulting on the delivery of the Network Technology
Strategy IT project 0.10
CECG Pty Limited To undertake a Capital Structure Review 0.08
TOTAL 1.74
Endeavour Energy also engaged five consultants less than $50,000 during 2010–11 for a total cost of $67,000. The consultants were
engaged to undertake projects for managerial, operational and economic advice.
Endeavour Energy Annual Performance Report 2010–11
95