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Annual Report of the Treasury for the Year Ended 30 June 2014

Provision of Financial Operations Services and Operational Advice

What is Intended to be Achieved with this Appropriation

This appropriation is intended to improve economic performance and financial stewardship across the State sector, export and financial markets, through provision of relevant and timely operational support, services and advice.

Scope of Appropriation

This appropriation is limited to the provision of services that support the performance of the State sector, including fiscal reporting, forecasting and monitoring; provision of Export Credit; and the management, administration and monitoring of Crown Guarantee Schemes, Crown Lending, Crown Investments and Crown Bank Accounts.

Significant Work Completed

During the year, the Treasury:

Performance improvement and capability building

  • Worked with SSC and DPMC on 13 full PIF reviews and eight follow-up PIF reviews. Led the upgrade to the regulatory lead question in the PIF Agency model; provided input into the remaining six upgrades; and participated in the reset and redesign of the PIF programme itself.
  • Changes we are implementing to the State Sector Act 1988, the Public Finance Act 1989 and the Crown Entities Act 2004 which were contained in the State Sector and Public Finance Reform Bill. In particular, we redesigned the Estimates and reporting requirements, and produced guidance to support more meaningful reporting against strategic intentions. The changes also provide for greater flexibility in allocating resources through multi-category appropriations.
  • Advanced the reform programme to deliver better public services. Advice included further strengthening of the mandate of specialist functional leadership within the public sector in information technology, procurement and property through whole-of-government directions applying to key Crown entities; and a comprehensive revision of Crown entities guidance for Ministers, entities and monitors.
  • We continued our focus on building the capability of priority public sector organisations by delivering global good practice products, training courses, communities of practice and executive sessions on developing Better Business Cases (BBC), and arranged for the endorsement of 13 Better Business Case Experts. We worked with NZTA to adapt BBC across the entire National Land Transport Programme, with growing wider interest from across local government.
  • Continued to improve performance metrics for the BASS exercise to enhance its utility for decision-makers. This included all agencies moving to report a more detailed breakdown of ICT expenditure, and enhanced effectiveness indicators via new capability maturity models for HR, Communications and Legal. Reported on BASS results for 2012/13 in March 2014.
  • Worked with agencies on identifying opportunities to strengthen the efficiency and effectiveness of the finance function and drive improvement in the performance of government agencies.

Budgeting, fiscal reporting and forecasting

  • Delivered the Budget 2014 consistent with the Government's fiscal strategy of returning to operating surplus in 2014/15 and funding all new capital requirements from the existing Crown balance sheet. This included advising the Government on operating and capital spending to enable Ministers to manage short- and longer-term spending pressures, reallocate government spending and reprioritise the balance sheet.
  • Produced tax and economic forecasts of the outlook for the New Zealand economy to inform future fiscal policy advice and to inform the public about the basis of that advice, helping both government and business to make informed decisions about spending and investment.
  • Produced unqualified audited Financial Statements of Government for 2012/13, including a high-level summary “fiscal overview” to serve as a useful roadmap for readers, and interim months financial statements of government.
  • Successfully identified and managed the impact on government reporting entities transitioning to new Public Benefit Entity accounting standards, including assisting entities to manage upcoming changes to their financial reporting framework.
  • Worked with agencies on the Optimise Finance Initiative, which focused on identifying opportunities to strengthen the efficiency and effectiveness of the finance function and help to drive improvement in the performance of government agencies.
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