Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p77
Version: federal_register_of_legislation:F2025C00172
Segment Type: other
Provision Reference: 
Character Range: 200565–203707

The conclusion from the above assessment is that in this case the State Government controls the University, assuming that the State Government's substantive rights give it the ability to direct the relevant activities of the University.

Implementation examples

Example IG5

A statutory authority SHS is established under State health services legislation to deliver services to the community.  The statutory authority has a governing council that oversees the authority's operations and is responsible for its day-to-day operations.  The State Health Minister, as part of their role in the State Government, appoints the authority's governing council and, subject to the Minister's approval, the authority's governing council appoints the chief executive of the authority.

The State Health Department acts as the 'system manager' for the State public health system.  This role includes:

    * strategic leadership, such as the development of State-wide health service plans;

    * directions for the delivery of health services, such as entering into service agreements, capital works approval and management of State-wide industrial relations, including employment terms and conditions for the authority's employees; and

    * monitoring of performance (eg quality of health services and financial data) of the authority and taking remedial action when performance does not meet specified performance measures.

The Minister's approval, given on behalf of the State Government, is specifically required for the following major decisions:

    * entering into service agreements with the authority;

    * issuing binding health service directives;

    * finalisation of State-wide health service plans and capital works planning; and

    * employment and remuneration of the authority's executive staff.

Example IG5A

Based on the facts and circumstances outlined above, the Department generally acts as an agent of the State Government in relation to the statutory authority.  This is evident from the restricted decision-making authority held by the Department.  The Department does not control the statutory authority.

As the State Government appoints the statutory authority's governing council and approves the major decisions affecting the authority's activities, the State Government has the power to direct the relevant activities of the authority.  Assuming that the other control criteria (variable returns and link between power and returns) are satisfied, as would be expected, then the State Government would control the statutory authority.  As a result, the statutory authority would not be consolidated by the Department, but would be consolidated directly into the whole of government general purpose financial statements.

Example IG5B

The facts are the same as in Example IG5A except that:

    * the State Government has delegated the power to appoint members of the statutory authority's governing council to the Department head;

    * the appointment of the authority's chief executive by the governing council does not require Ministerial approval;

    * the State Government has delegated the power to