2  The content of a section 32A report

Section 32A(3) specifies the information that must be included in the section 32A report. This part of the guidance covers the legislative requirements as well as information on content and the structure. Section 32A reports should conform to the following structure:[7]

• Title page
• Minister's (or Ministers') foreword
• Introduction
• Statement(s) of service performance
• Statement(s) of results

A template for the report format is available at http://purl.oclc.org/nzt/g-nda

2.1  Title page

As these area Ministerial reports, the title page should display the New Zealand coat of arms, not the departmental crest.

The title page should include the name of the Vote and the financial year to which the report relates. It should also indicate that it is presented to the House of Representatives pursuant to section 32A of the Public Finance Act 1989.

2.2  Foreword

If they wish, the Minister(s) responsible for the appropriation(s) or class(es) of outputs can provide a foreword to the report. This could include:

• A statement of the legislative requirement for the Minister(s) to provide section 32A reports (eg, section 32A(2) of the PFA).
• A brief outline of the information provided in the report (ie, the statements of service performance and statements of results).
• A summary of the activities, appropriations, and output classes covered by the report.
• Whilst it is not mandatory for them to do so, Minister(s) may if they wish sign the foreword.

2.3  Introduction

The introduction should contain contextual information that provides background to the statements of service performance and statements of results. This information could include:

• Explanations of the objectives or purpose of the appropriations and the strategies for their achievement.
• A collective statement of the key activities funded in the reporting period highlighting the main elements.
• A list of key providers mapped to appropriations or outputs.

This contextual information assists readers to understand the performance measures and results reported in the statements of service performance and statements of results. The introduction should be concise, expressed in plain (jargon free) language, and tightly focussed on the needs of the members of Parliament.

2.4  Statement of service performance (output expenses)

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 appropriation or output class level. A good statement of service performance will contain more than summary information concerning volumes, timeliness and price. The statement of service performance should report actual results against the proposed levels of service delivery signalled in the relevant financial years Information Supporting the Estimates of Appropriations (and/or in relevant financial years Information Supporting the Supplementary Estimates of Appropriations). It must include:

• the delivery performance achieved in the previous year, compared with the measures and standards included in the Information Supporting the Estimates of Appropriations, for each class of outputs or each other expense, and
• any other matters necessary for the statement of service performance to be prepared in keeping with GAAP, including any other/new measures and targets needed to assess the appropriation’s performance for the year.
• The statement of service performanceshould also include:
• the scope of each class of output (covered by the report) funded by the appropriation during the financial year, and
• the outcomes to which each class of outputs was intended to contribute (if practical and appropriate) as under Generally Accepted Accounting Practice (GAAP), service reporting needs to be done in the context of outcomes.

If information on a particular variance between forecast and actual performance could affect the reader's assessment, then that information should be reported, together with the reason for the variance. The following should also be reported:

• long-term output work-in-progress, and
• any changes to specified output performance.

2.5  Statement of results (other expenses and capital expenditure)

A statement of results is to be provided where the type and scope of the appropriation is such that a statement of service performance is inappropriate. A statement of results will be appropriate for capital expenditure appropriations and most other expense appropriations. However, where an other expense appropriation has close similarities with the general characteristics of outputs, consideration should be given to providing a statement of service performance.

The statement of results must compare actual results (both financial and non-financial) with those that were forecast to be produced. The forecast results should have been explicitly stated in the Information Supporting the Estimates of Appropriations.