Additional information and additional statutory requirements
Cost effectiveness
The Treasury is committed to improving measurement of its performance, including the cost effectiveness of the services we deliver. For a large proportion of the work the Treasury does - our policy advice functions - there are no clear-cut measures of cost effectiveness. For this reason the Treasury is focusing on bringing a greater level of attention to measuring and assessing the impact we are having. In addition we will look to the Government's response to the Review of Policy Expenditure for guidance on measuring the cost effectiveness of policy advice and we will seek to be an early adopter of any recommended measures.
In our operational areas we will measure our cost effectiveness using the following measures:
Debt Management Office:
- The average cost of new core Crown borrowing is less than the long run of borrowing rate of 6%.
- Cost per DMO transaction over time.
NZECO:
- Operating cost per $ of new exports supported.
- Operating Expense/Earned Premium plus Applications fees ratio is less than or equal to 60%.
As noted above we will be monitoring the cost effectiveness of our administrative and support services using the BASS metrics.
Integrated corporate services
Over the next 12 months the Central Agencies' corporate services will be focused towards developing “a single model of supply across the three Central Agencies with shared governance” through an Integrated Corporate Services Project. The purpose of the project is for the three Central Agencies to become more efficient and effective through providing smarter, better corporate services for less ensuring they meet the three agencies' front line business needs for the future. The Central Agencies have adopted the following Critical Success Factors:
- To show value for money.
- To maintain or reduce their corporate spend baselines.
- To make better use of their capital budget.
- To enable better and more resilient services.
- To be creative and innovative in finding solutions.
- To show collectively thinking – joint planning, opportunities for collaboration across projects.
- To have identified every opportunity to integrate and work collectively.
- To maintain or improve the quality of services.
- To mitigate risks in specialist skill sets and provide broader career opportunities for staff.
- To ensure these services meet their customers’ needs.
Central Agencies' corporate services are recognised exemplars to other public sector agencies.
