Annex: 2014/15 Strategic Planning and Reporting

This annex has been added to support Crown entities thinking about changes to their strategic planning and reporting for 2014/15 and subsequent years; subject to amendments being made to the Crown Entities Act 2004 (CEA) and the Public Finance Act 1989 (PFA) by the State Sector Public Finance and Reform Bill (the Bill).

What can entities do in preparing for the Bill's enactment?

Using the Bill[18] (or when available the amended CEA and PFA) and the information contained in pages 38-41, Crown entities can start thinking about which of the amendments they will utilise to support their own and (where applicable) the performance of the sector they operate in.

Some matters Crown entities could consider include:

• A Crown entity's strategy will need to cover a minimum of four financial years (an increase of one year) and may need to be tabled in Parliament only once every three years.

Should the strategy cover a longer time period than the minimum given the functions and operations of the Crown entity/sector? When, and at what intervals within that period, will the entity report on the impact of the component parts of the strategy? Are the Crown entity's operating environment, management and reporting systems stable and therefore should the entity be talking to the responsible Minister about preparing a statement of intent that may not need to be renewed for three years?

• For entities funded in whole or in part by non-departmental appropriations: With the shift to reporting on what is intended to be and has been achieved with non-departmental appropriations and working with the department who administers the non-departmental appropriations:

Is the structure of appropriations administered by the department and their scopes, period and measures fit for this purpose? Are the appropriations grouped in the most useful way taking into account the new multi-category appropriation type? Are there non-departmental appropriation types which will now require performance reporting for the first time?

• Has the Crown entity selected the most meaningful measures of performance e.g., outputs or services delivered, outcomes, impacts, capability provided or some combination of these that best demonstrate what is intended to be and has been achieved?
• With both the draft statement of intent and draft statement of performance expectations required to be with the Minister 1 month earlier (i.e 1 May) do any board meetings and / or sign off processes need to be moved/change?
• Does the Crown entity have a current Output Agreement? What information is left in the Output Agreement once the components that fit in the statement of performance expectations are removed? Is another type of agreement needed with the responsible Minister and/or monitoring department for this other information (which might include payment schedules, conflict resolution procedures, monitoring arrangements)?
• Can the Crown entity group its reporting and/or reporting with other departments and entities in different ways so as to provide a better, integrated view of performance?
• What information and support do the subsidiaries of the Crown entity need?

Next steps:

• Having identified the issues and opportunities talk about it internally and with any subsidiaries and sector partners.
• Involve your monitoring department and/or Audit contact points to assist with shaping the information to support the government’s goals and to take advantage of the new flexibility.
• Let your monitoring department know what other support your Crown entity may be seeking from the Treasury to implement the Bill.