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Statement of Intent 2015-2019

The State sector efficiently and effectively delivers results for New Zealanders

What we intend to achieve

  • Improved performance of the State sector system, sectors and agencies through greater cross-agency leadership and collaboration, and the use of clear results-focused goals, and improved strategic financial and fiscal management.
  • Better information is generated and used by the State sector to drive performance improvements and changes to State sector institutions and systems.
  • State sector management and reform is informed through a customer- and population-based focus.

Specific intentions include:

  • clear results-focused goals and cross-agency leadership and collaboration – leading to a more inclusive society
  • improved value for money of expenditure and agency interventions and steadily rising productivity
  • improved strategic financial management
  • agencies keep to agreed spending paths and future liabilities are reduced in major expenditure areas, and
  • long-term fiscal pressures are reduced and the Crown pre-funds satisfactorily for future expenditure pressures.

What success will look like

  • Government results are delivered and functional leadership in property, procurement and ICT delivers tangible benefits.
  • We develop a clear picture of how the State sector system is performing and how it influences and delivers results for citizens.
  • There are demonstrable improvements in State sector productivity, efficiency and effectiveness.
  • New purchasing models, such as contracting for outcomes, are implemented, where testing demonstrates they will produce better outcomes for at-risk population groups.
  • Diverse service providers are introducing greater innovation within calculated risks.
  • Seventy percent of departments are assessed by central agencies as investment-ready under Four-year Plans.
  • The financial capability of agencies is strengthened; as demonstrated by the financial 90% of agencies being assessed as “well placed” or better in the Performance Improvement Framework (PIF) Finance and Resources – Financial Management rating.
  • Value drivers for government agencies and value from expenditure are better understood.
  • Agencies keep to agreed spending paths and measured future liabilities reduce in major expenditure areas.

What we will do to achieve this

  • Deliver robust fiscal and financial management to improve State sector performance. Specifically, we will:
    • support the Government in delivering a budget in line with its fiscal strategy, and
    • provide advice on:
      • improving the efficiency and effectiveness of expenditure in the priority sectors of health, justice, education and skills, and welfare
      • “controls and monitoring” and “outlook and sustainability” of all agency expenditure
      • affordability, future capability and value for money from the expenditure and operating business cases of government agencies, together with strategies for managing them
      • substantial State sector transformation programmes such as Ministry of Business, Innovation, and Employment (MBIE) integration and Inland Revenue business transformation, and
      • efficient and effective Canterbury earthquake recovery procurement.
  • Undertake performance improvement initiatives designed to improve internal and external strategic financial management capability. Specifically, we will:
    • raise State sector strategic financial capability through the establishment of the Office of Government Accountant, and
    • develop the Four-year Plan process so that departments take responsibility for assessing their investment readiness themselves and it is integrated with other key strategic activities such as the Statement of Intent and PIF processes.
  • Monitor, assess and provide advice on the performance of the State sector system and how to improve performance. Specifically, we will:
    • understand the incidence of government spending across the community
    • generate better data for government decisions, to understand, reward and adapt performance; for example, through a central Analytics and Insights function and agreements on information sharing
    • support the transition to long-term arrangements in Christchurch in light of the expiry of the Canterbury Earthquake Recovery Act in 2016
    • support new approaches to social sector contracting, including cross-government contracts, community-led service delivery, social financing, Whānau Ora and outcomes-based contracting, and
    • provide advice on:
      • system-wide State sector performance, including on results, delivery mechanisms and market design
      • the implementation of State sector system reforms, including functional leadership, collaborative funding and new opportunities for better management, and
      • social housing reform options to grow the third sector and reconfigure Housing New Zealand Corporation (HNZC); work with MBIE, Ministry of Social Development (MSD) and other agencies on Social Housing Reform Programme deliverables; advise on changes to HNZC to support competition and better performance.
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