3.5 Statement of service performance
A statement of service performance reports on the extent to which intended levels of service and service performance were met during the period at an output class level.
Statutory requirement: [Section 45A of the PFA] -
A department's statement of service performance must:
(a) be prepared in accordance with generally accepted accounting practice
(b) describe each class of outputs supplied by the department during the financial year, and
(c) include, for each class of outputs:
(i) the standards of delivery performance achieved by the department, as compared with the forecast standards included in the department's statement of forecast service performance at the start of the financial year [in the Information Supporting the Estimates]; and
(ii) the actual revenue earned and output expenses incurred, as compared with the expected revenue and proposed output expenses included in the department's statement of forecast service performance at the start of the financial year [in the Information Supporting the Estimates].
The structure and descriptions of output classes are to be consistent with those already disclosed in the statement of forecast service performance in the department's Information Supporting the Estimates. These in turn should have been agreed by Cabinet or jointly by the Minister of Finance and the relevant Vote Minister. Where Cabinet has approved changes to output class structures over the financial year, the department must detail and explain the variation.
The PFA permits the Governor-General to make regulations, and the Minister of Finance to issue instructions, on the non-financial reporting standards that departments must apply, but no such regulations or instructions have yet been produced
Revenue information should distinguish between that received from the Crown, from other departments, and from other sources. Any gains on sale of assets should also be shown separately.
The PFA requires departments to provide output performance information in their statement of service performance. However, departments are encouraged to include references to impacts, outcomes and the achievement of other objectives (if relevant) in their statement of service performance to provide context for the output information. The auditor will also consider the impact and outcome information in issuing the audit opinion.
Departments may find the Technical Practice Aid (TPA) No. 9 (2007 revised) on Service Performance Reporting[9] helpful guidance along with the Auditor-General's Audit Standard 4, The Audit of Service Performance Reports (AG4)[10].
A repackaged copy of TPA No. 9 is now available as Appendix C of PBE IPSAS 1 Presentation of Financial Statements issued by the External Reporting Board (XRB) in May 2013.[11] A copy of PBE IPSAS 1, Appendix C can be found here: http://www.xrb.govt.nz/Site/Accounting_Standards/Current_Standards/Standards_for_Public_Sector_PBEs/Standards_after_1_July_14/Standards_for_Tier_1_and_2_PS_PBEs.aspx.
Notes
- [9]TPA No.9 was originally issued by the Financial Reporting Standards Board, the previous standard setting body of the New Zealand Institute of Chartered Accountants. In July 2011 the External Reporting Board (XRB), a new independent Crown entity, was established and the previous standard setting function of the Institute was transferred to the XRB. As a result a PDF copy of TPA No. 9 (2007 revised) can be obtained using a search engine on the internet or through resources only available to members of the Institute of Chartered Accountants.
- [10]AG-4 can be found here http://www.oag.govt.nz/2011/auditing-standards/docs/27-ag-4-service-performance.pdf/view.
- [11]In May 2013 the XRB (and its sub board, the New Zealand Accounting Standards Board, NZASB) issued a package of new standards that will apply to public sector public benefit entities from the 2014/15 financial year, including PBE IPSAS 1. As an interim measure, the XRB and NZASB incorporated the current TPA No.9 (repackaged) as Appendix C of PBE IPSAS 1, while they work on a project to develop a standard on service performance reporting.
