The tables below set out, for the types of entities covered by this discussion paper, the non-financial performance information they are required to report, and the Auditor-General's audit responsibilities for that reported information.
Crown entities' statements of intent
The purpose requirements are set out in section 138 of the Crown Entities Act 2004. The medium-term content requirements are in section 141, the annual content requirements are in section 142, and the audit requirements are in section 156.
| Purpose |
Promote public accountability by:
- enabling the Crown to participate in setting the entity's medium-term intentions and undertakings;
- setting out to Parliamentarians those intentions and undertakings; and
- providing a base against which the entity's actual performance can later be assessed.
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| Medium-term content requirements |
For the three-year period:
- key background information about the entity and its operating environment;
- the nature and scope of the entity's functions and intended operations;
- the specific impacts, outcomes, or objectives that the entity seeks to achieve or contribute to (including any government policy directions the entity is directed to give effect to and how these relate to the outcomes or objectives of the direction);
- how the entity intends to perform its functions and conduct its operations to achieve its impacts, outcomes, or objectives;
- how the entity proposes to manage its organisational health and capability;
- the main financial and non-financial measures and targets by which the future performance of the entity may be judged;
- matters on which the entity will consult or notify or report to the Minister;
- any process to be followed for the purpose of acquisition of shares or interests in companies, trusts, and partnerships; and
- other matters the entity is required to include or are reasonably necessary to understand the entity's intentions and direction.
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| Annual content requirements |
For the first financial year, a statement of forecast service performance that complies with generally accepted accounting practice. The statement must:
- describe the classes of outputs the entity proposes to supply;
- provide the measures and forecast targets of output delivery performance against which the entity's actual delivery of classes of outputs will be reported; and
- identify the expected revenue to be earned and proposed expenses to be incurred, for each output class.
The statement must also include:
- any other measures and targets necessary to assess the entity's performance at the end of the financial year; and
- any additional information and explanations needed to fairly reflect the forecast financial operations and financial position of the entity.
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| Audit requirements |
| The Auditor-General must audit the entity's annual financial statements, statement of service performance, and any other information that the Auditor-General has agreed, or is required, to audit, within three months after the end of each financial year. |
Information on future operating intentions of government departments and Offices of Parliament
The purpose requirements are set out in section 1A of the Public Finance Act 1989. The medium-term content requirements are in section 40, the annual content requirements are in sections 41 and 45A, and the audit requirements are in section 45D.
| Purpose |
| Provide a framework for parliamentary scrutiny by (among other things) specifying the minimum financial and non-financial reporting obligations of Ministers, departments, Offices of Parliament, and organisations named or described in Schedule 4. |
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| Medium-term content requirements |
For the three-year period:
- the nature and scope of the entity's functions and intended operations;
- the specific impacts, outcomes, or objectives that the entity seeks to achieve or to contribute to through its operations;
- how the entity intends to perform its functions and conduct its operations to achieve those impacts, outcomes, or objectives; and to effectively manage those functions and operations within a changeable operating environment;
- the main measures and targets that the entity intends to use to assess and report on matters relating to its future performance, including the impacts, outcomes, or objectives achieved or contributed to by the entity (including possible unintended impacts or negative outcomes);
- the cost-effectiveness of the interventions that the entity delivers or administers;
- the entity's organisational health and capability to perform its functions and conduct its operations effectively; and
- any other matters that are reasonably necessary to achieve an understanding of the entity's operating intentions and direction; or may be specified by the Minister.
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| Annual content requirements |
For the first financial year, a statement of forecast service performance that complies with generally accepted accounting practice. The statement must:
- describe the classes of outputs the entity proposes to supply;
- the measures and forecast targets of output delivery performance against which the entity's actual delivery of classes of outputs will be reported;
- identify the expected revenue to be earned and proposed expenses to be incurred, for each output class.
The statement must also include:
- comparative budgeted and estimated actual figures for the previous financial year for the forecast financial statements;
- any other measures and targets necessary to assess the entity's performance at the end of the financial year; and
- any additional information and explanations needed to fairly reflect the forecast financial operations and financial position of the entity.
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| Audit requirements |
| The Auditor-General must audit the entity's annual financial statements, statement of service performance, and any other information that the Auditor-General has agreed, or is required, to audit, within three months after the end of each financial year. |
Local authorities' long-term council community plans
The purpose requirements are set out in sections 3 and 93 of the Local Government Act 2002. The long-term content requirements are in clauses 1 and 2 of Schedule 10, the annual content requirements are in clause 2 of Schedule 10, and the audit requirements are in sections 84, 94, and 99 and Part 3 of Schedule 10.
| Purpose |
Provide for democratic, effective local government by:
- providing a framework and powers for local authorities to decide the activities they undertake;
- promoting accountability of local authorities to communities; and
- providing for local authorities to play a broad role in promoting their communities' social, economic, environmental, and cultural well-being, taking a sustainable development approach.
The purpose of a long-term council community plan is to:
- describe the activities of the local authority;
- describe the community outcomes of the district or region;
- provide integrated decision-making and co-ordination of local authority resources;
- provide a long-term focus for local authority decisions and activities;
- provide a basis for local authority accountability to the community; and
- provide an opportunity for public participation in decision-making on local authority activities.
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| Long-term content requirements |
For at least 10 years, describe:
- the district/region's community outcomes; and
- how the entity will contribute to the community outcomes, including how it will work with others and how the community outcomes relate to other key strategic planning documents or processes.
The plan is required to state the measures to be used to assess progress towards the community outcomes and how the local authority will monitor and report on progress towards achieving the outcomes.
For each group of activities, the plan is to:
- identify the rationale for delivery of the group of activities (including the community outcomes to which the group contributes) and the activities within the group;
- outline the negative effects an activity may have on the community's social, economic, environmental, or cultural well-being; and
- set out information about the assets of the local authority and the implications and associated funding of demand or consumption and asset service provision levels and targets.
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| Annual content requirements set out for the medium term |
Include in detail for each of the first three years and in outline for the subsequent seven, statements of:
- the intended levels of service provision for the group of activities, including the performance targets and other measures by which actual levels of service provision may be assessed meaningfully;
- the estimated expenses of achieving and maintaining the identified levels of service provision; and
- the estimated revenue levels, the other sources of funds, and the rationale for their selection.
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| Audit requirements |
The Auditor-General must report on the statement of proposal, adopted plan, and any amendments, including:
- the compliance of the statement with the Act;
- the quality of the information and assumptions underlying the forecast information; and
- whether the forecast information performance measures provide an appropriate framework for meaningful assessment of actual levels of service provision.
The Auditor-General must report on the annual report's:
- financial statements;
- compliance with the Act's requirements;
- statement comparing actual and intended levels of service provision and giving reasons for significant variances between actual and expected service provision; and
- statement of significant asset acquisitions or replacements, and reasons for these and for significant variations from the plan.
The Auditor-General must also report on whether the summary annual report fairly and consistently represents the major matters in the annual report. |
Council-controlled organisations', port and energy companies', Crown research institutes', and State-owned enterprises' statements of (corporate) intent
The content requirements for the various types of entities are set out in the Local Government Act 2002, the Port Companies Act 1988, the Energy Companies Act 1992, the Crown Research Companies Act 1992, and the State-Owned Enterprises Act 1986.
| Content requirements over three years |
Council-controlled organisations |
Port companies |
Energy companies |
Crown research institutes |
State-owned enterprises |
| Statement of intent |
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| Statement of corporate intent |
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| Coverage of 3 financial years, updated annually |
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| Content to be covered for the parent entity and its subsidiaries |
| Objectives of the group |
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| A statement of the board's approach to governance |
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| Key background information about the organisation and its operating environment |
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| Nature and scope of activities to be undertaken |
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| Ratio of consolidated shareholder funds to total assets and definitions of those terms |
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| Accounting policies |
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| Performance targets and other measures by which the performance of the group may be judged in relation to its objectives |
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| An estimate of the amount or proportion of accumulated profits and capital reserves that is intended to be distributed to the shareholders |
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| Statement of the principles adopted in determining the annual dividend, and an estimate of the amount or proportion of annual tax-paid earnings that is intended to be distributed to the Crown |
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| The kind of information to be provided to the shareholders/shareholding Ministers |
(shareholders) |
(shareholders) |
(shareholders) |
(Ministers) |
(Ministers) |
| Procedures to be followed before any member of the group subscribes for, purchases, or otherwise acquires shares in any company or organisation |
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| Activities for which the board seeks compensation from any local authority, Harbour Board, or the Crown |
(local authority) |
(Harbour Board) |
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(Crown) |
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| The board's estimate of the commercial value of the Crown/shareholders' investment in the group and the manner in which, and the times at which, that value is to be reassessed |
(shareholders) |
(shareholders) |
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(Crown) |
(Crown) |
| Details of all transactions intended to be entered into between any member of the group and related parties as set out in the Energy Companies Act 1992 |
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| Other matters that are agreed by shareholders/ shareholding Ministers and the board |
(shareholders) |
(shareholders) |
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(Ministers) |
(Ministers) |
| Reporting against intended performance |
| Annual report should contain information that is necessary to enable informed assessment of the operations of the parent entity and its subsidiaries |
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| Audit requirements |
| Financial statements |
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| Performance targets and other measures by which performance was judged in relation to the entity's objectives |
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* Plus an explanation of material variances.
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