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Chapter 4: Balance Sheet Performance

...Improving the understanding of assets and liabilities will enable the Crown to maximise their performance and improve outcomes...

  • Overview
  • Measuring performance
  • Social assets
  • Financial assets and liabilities
  • Commercial portfolio

Overview

This chapter describes the financial and non-financial performance measures of the Crown's assets and liabilities, broken down into the primary functional classification of the entities which hold them. Each section details the consolidated value of the assets and liabilities that make up each sector at 30 June 2013 as per the FSGNZ. They also discuss the usage, performance, expected trends and opportunities and challenges facing the Crown's assets and liabilities.

Understanding what the Crown owns and owes, and how it uses those assets and liabilities to provide services, enables improved performance, more informed views on whether past resource allocations remain appropriate, and better decisions to be made for the future.

Globally, public sector organisations struggle to develop robust means to measure asset and liability performance, and New Zealand is no exception. There needs to be an improvement in the type of information collected around the balance sheet, and how that information is used to make effective decisions.

While Financial and Commercial entities are largely assessed against their returns, Social agencies have traditionally been more focused on operating expenditure and outcomes and need better non-financial performance information. A better understanding of Crown asset and liability contributions to government objectives will improve management of the Crown's balance sheet.

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