Part 3: Increasing our impact with public organisations

Annual plan 2023/24.

Effective performance and accountability systems are vital to maintaining the trust and confidence that Parliament and the public have in the public sector.

As the auditor of every public organisation in New Zealand, the Auditor-General is in a unique position to influence improvements in performance and accountability practices across the public sector. This includes our role in promoting examples of good practice in areas where we have particular interest and expertise.

Our work to influence positive change in the accountability practices of public organisations will help support Parliament in its scrutiny role and provide improved information for the public.

In 2023/24 our work will focus on:

1. Influencing the public accountability system and supporting parliamentary scrutiny

We want to see significant improvements in how the public sector reports on its spending and on what is being achieved.

We use the information that we gather from our work, including from our annual audits, to influence the public accountability system and provide support to select committees to help their scrutiny of public organisations by Parliament.

Advice and support to Parliament and select committees

We work closely with select committees to support their scrutiny of public sector spending and performance. For example, in 2022/23 we provided more than 180 briefings to select committees.

In 2023/24, to improve our advice to select committees, we will focus on supporting committees to examine new and significant public organisations, including their major areas of spending and the quality of their performance reporting.

In 2023/24, we will complete work that will provide a picture of sector-level performance reporting for public organisations that contribute to the Transport Outcomes Framework.5 We will also publish an Auckland landscape scan that describes what is publicly reported about how the public sector is performing in the region.

In 2023/24, we will build on both pieces of work as part of improving our briefings to select committees. We will provide select committees with a broad assessment of, and commentary on, the performance reporting of other sectors. We will also provide advice about areas for improvement.

This work will be part of improving our support to Parliament and our engagement with these public organisations to improve their financial and performance reporting.

We will work closely with the Office of the Clerk after the General Election to help ensure that incoming select committees are well prepared to carry out their scrutiny of public sector spending and performance.

Planned work: Advice and support to Parliament and select committees
We will continue to improve our advice and support to Parliament and select committees, with a particular focus on examining new and significant public organisations, their spending, and the quality of their performance reporting. We will do this as part of annual reviews and scrutiny of forecast spending through the Estimates of Appropriations after the Government announces its Budget each year.

We will also support induction programmes for incoming select committees and provide sector briefings to subject committees as required.

Readiness for next round of long-term plan audits

Under the Local Government Act 2002, councils are required to prepare a long-term plan every three years. The next long-term plans are due by 30 June 2024.

We audit every long-term plan (and the associated consultation documents) to determine whether they meet their statutory purpose. We also provide our conclusions on the quality of the assumptions and other information used to prepare the plans.

We will continue to work closely with the Department of Internal Affairs' National Transition Unit to understand the effect of the reforms on current and future audit requirements – including current annual audits, audits of the 2024-34 long-term plans, and audits of the new water services entities that will be established by 1 July 2026.

Planned work: Preparing for, and performing, the next round of long-term plan audits
Our audits of long-term plans are different to annual audits because the documents focus on what councils plan to do in the future. Almost all of our annual audits cover what has already happened.

We will support our auditors to successfully complete the next round of long-term plan audits. To do this, we will review the methodology and guidance our auditors use to perform their audits and provide specific training for this. The reform of water services is expected to add complexity to the 2024-34 long-term plan audits. Our work to prepare for the next long-term plan audits started in 2022/23 and will continue into 2023/24, when the audits of the 2023-34 long-term plans will be carried out.

In 2023/24, we also plan to support elected members and audit and risk committees as their councils prepare their long-term plans. We will share information with elected members about what they should be focused on to perform their role in the long-term plan process, and the types of questions they should ask council staff who are preparing the long-term plans.

We regularly produce reports that focus on Auckland Council to meet our requirements under the Local Government (Auckland Council) Act 2009.

Planned work: Auckland Council review of service performance (topic to be confirmed)
Section 104 of the Local Government (Auckland Council) Act 2009 requires the Auditor-General to review the service performance of Auckland Council and each of its council-controlled organisations from time to time. We are assessing possible topics for this next review.

Public accountability research

Effective public accountability is critical to maintaining the trust and confidence of Parliament and the public. In 2023/24, we plan to carry out research into how government agencies are working collaboratively with communities and how this influences improved public accountability.

Planned work: Public sector accountability to communities – research
In 2023/24, we plan to carry out research into what is needed to support high-quality partnerships between public organisations and communities to achieve common goals. We are also interested in whether this way of working can support and improve public accountability. We will look at government-community partnerships to understand what works well, how parties describe and demonstrate progress towards shared common goals, and what motivates the parties to act in the best interest of the partnership. We will present our findings as a series of case studies.

Our research will support our work on influencing the performance of public organisations and inform our work on improving performance reporting in the public sector.

Reporting on well-being

The Public Finance Act 1989 was amended in 2020 to improve the reporting of well-being objectives and the state of well-being in New Zealand.

The Government is now required to set out its well-being objectives annually. The Treasury is required to report on the state of New Zealand's well-being at least once every four years.

The Treasury published its first Wellbeing Report in November 2022. We will provide commentary on the report, including looking at how well it supports a broader understanding of New Zealand's success.

Planned work: Commentary on the Wellbeing Report
Using indicators, the Treasury's Wellbeing Report must describe the state of well-being in New Zealand, how it has changed over time, its sustainability, and any risk to its sustainability. The Treasury published its first Wellbeing Report in November 2022.

The Wellbeing Report is one of a suite of stewardship reports the Treasury is responsible for. We will look at how well the report describes the state and sustainability of well-being in New Zealand. We will also look at the report's position and place in the suite of stewardship reporting and its potential use in supporting the quality and depth of public information and understanding of New Zealand's success.

2. Influencing the performance of public organisations

Through our work, we provide Parliament and the public with assurance that public organisations are delivering what they have been asked to. We report both good and poor performance from our performance audits and inquiries. This normally results in either a report or letter (usually to Parliament) that identifies good practice, raises any issues or concerns, and may recommend improvements to the audited public organisations.

When we scope and carry out performance audits, we consider how to incorporate the four priorities in our strategy.

Health outcomes

Poor mental health and alcohol/other drug-related harm are common in New Zealand. Young people are particularly at risk of experiencing poor mental health or well-being, and there is evidence that the situation is getting worse.6

The mental health and alcohol/other drug harm reduction system for young people is complex. Young people who require treatment or support for mental health and alcohol/other drug issues might access services from a range of places.

Multiple government agencies are involved in the funding and delivery of mental health and alcohol/other drug harm reduction services for young people. It is important that all parts of the system work well together so young people can access timely and appropriate mental health and alcohol/other drug harm reduction services.

In 2022/23, we started a performance audit that looks at how effectively government agencies work together to understand and meet the mental health and alcohol/other drug harm reduction needs of people aged 12 to 24 years.

Planned work: Effectiveness of mental health and alcohol/other drug services for young people
In 2023/24, we intend to complete our performance audit on how mental health and alcohol/other drug harm reduction services are meeting the needs of young people. We will report on what public organisations with responsibilities for mental health and alcohol/other drug harm reduction services understand about current access to services for young people.

We will also look at how services are distributed and the causes of unmet need among this age group. We will report on what these organisations are doing to address any gaps in services or identified delays.

Education outcomes

A stable and strong education system keeps learners engaged and motivated and supports them to achieve their full potential. However, New Zealand's education system does not produce equitable outcomes for all learners. Poor education outcomes will often affect the learner throughout their adult life.

The reasons for educational disparities are complicated and the Ministry of Education is not the only organisation responsible for finding solutions. We plan to look at how the Ministry uses information to identify, understand, and address educational disparities.

Planned work: Understanding and addressing educational disparities
In 2023/24, we will complete our work on how effectively the Ministry of Education uses information to promote equitable outcomes for all learners in years 1-13. We are looking at how effectively the Ministry understands inequities in student outcomes and how this understanding is used to develop, target, and prioritise responses.

We will examine some interventions in detail to understand how data was used to inform the design of responses and how the Ministry ensures that its responses are effectively evaluated. We will also look at how the Ministry is collaborating with other public organisations to effectively address inequities of outcomes in education.

Immigration outcomes

Immigration is important to public services, businesses, and communities. It provides skilled workers, reunites families, and brings in students and people on working holidays. Immigration New Zealand plays a vital role by processing and making decisions about applications.

The immigration system has been significantly affected by the Covid-19 pandemic. Immigration New Zealand has faced several challenges, including the introduction of new visa categories and changes to workflows as part of rebalancing the immigration system after New Zealand's borders reopened in 2022.

In 2023/24, we plan to look in detail at how visas are processed. We want to assess how well Immigration New Zealand's processes are managed for applicants.

Planned work: Immigration New Zealand visa processing – accountability and effectiveness of the visa process
In 2023/24, we plan to assess how well Immigration New Zealand is meeting the needs of applicants. We will do this by looking at how well it is managing visa processing and the ease of engagement, communication, and feedback to applicants. We are also interested in the timeliness of processes for applicants and how Immigration New Zealand deals with complaints.

Reducing child poverty

A significant percentage of children throughout New Zealand live in households where meeting everyday needs is a struggle. The Child Poverty Reduction Act 2018 requires the Government to set three-year and 10-year targets for reducing child poverty. The Child Wellbeing and Poverty Reduction Group, which sits in the Department of the Prime Minister and Cabinet, leads the work to reduce child poverty.

Eight of the nine child poverty measures set out in the Child Poverty Reduction Act 2018 have shown improvements.7 However, the data also shows that although the percentage of New Zealand European children living in material hardship is 7.6%, 18.8% of tamariki Māori, 25.6% of Pasifika children, and 21.5% of disabled children are living in material hardship.8

Actions to reduce child poverty are being delivered as part of the Child and Youth Wellbeing Strategy and associated Programme of Action. A review of the Strategy in late 2022 found that although there is strong agreement with the vision and outcomes in the Strategy, implementing it could be better supported.9 This includes improved co-ordination and alignment between agencies and between agencies and communities, and more intentional steps to embed te ao Māori concepts of well-being.

In 2023/24, we will progress our work on the Government's efforts to reduce child poverty. We added this topic in response to the results from our survey of a representative sample of New Zealanders in 2022. We intend our work to help improve the reliability of information about what public organisations are doing to address the complex issue of child poverty.

Planned work: Progress of the Government's efforts to reduce child poverty
In 2023/24, we will progress a performance audit examining the Government's progress in reducing child poverty, including:
  • reviewing the Government's progress in implementing its initiatives from the Child and Youth Wellbeing Strategy in reducing child poverty. We will also review to what extent these are making a difference for children, their families, and communities;
  • looking at how effectively public organisations are working together to deliver the Government's child poverty work programme, including the role of the Department of the Prime Minister and Cabinet's Child Wellbeing and Poverty Reduction Group; and
  • looking at whether information is shared and reported to the public in ways that are meaningful and accessible.

Housing and urban development

New Zealand's housing and urban development system faces significant challenges that have wide-reaching consequences. For example, there has been a significant increase in the number of people waiting for public housing. Some challenges disproportionately affect Māori and Pasifika families.

In 2023/24, we will complete a performance audit looking at how effectively Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development is leading the housing and urban development system. Established in 2018, the Ministry's role involves leading, facilitating, and co-ordinating action by other public organisations and leading the implementation of the Government Policy Statement on Housing and Urban Development.

We will also start a performance audit looking at how Kāinga Ora – Homes and Communities is working with other organisations on significant housing and urban development projects. Kāinga Ora expects to provide about 40,000 new affordable homes in the next 20 years through eight large-scale projects in Auckland, Porirua, and Te Kauwhata in the Waikato region. In addition to its own revenue and borrowing, Kāinga Ora has received $2.3 billion from the Housing Acceleration Fund to build the necessary infrastructure for these projects. Kāinga Ora is working with developers, councils, iwi, and other central government agencies to deliver these projects.

Planned work: Leadership of the housing and urban development system
We will complete the audit looking at how well placed Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development is to lead the housing and urban development system.

We are looking at how well the Ministry is set up to carry out its leadership role, how well it works with other organisations, and how effectively it maintains oversight of the housing and urban development system.
Planned work: Planning of significant housing and urban development projects
In 2023/24, we will start a performance audit looking at how Kāinga Ora – Homes and Communities works with other organisations to plan and implement significant housing and urban development projects.

We are particularly interested in how effectively central and local government work together on infrastructure planning and implementation, especially given the significant additional funding for infrastructure and land development through the Housing Acceleration Fund.

As part of this work, we also intend to consider how Kāinga Ora will provide for Māori and Pasifika needs and aspirations in these projects and how Kāinga Ora will involve iwi and hapū in the planning processes. We will also look at how efficiently housing projects are delivered and what agencies are doing to ensure the quality of that housing.

Cyber security maturity and preparedness

Without fit-for-purpose cyber security, New Zealand will be unable to protect its intellectual property, maintain its reputation as a stable and secure place to live and do business, and ensure that government and democratic processes remain free from interference.

In 2023/24, we will carry out a performance audit to see how a range of public organisations responsible for critical infrastructure and/or key services govern their cyber security risk preparedness and response.

Planned work: Cyber security maturity and preparedness
Information security is becoming increasingly complex as technologies continue to evolve. It can be challenging to keep up to date with the risks associated with them.

Managing information security risk well is essential to protect the public sector's critical information assets. Information security failures can undermine public trust and confidence in the public sector. It is important that government departments, Crown entities, and councils have an effective approach for managing this risk.

In 2023/24, we will carry out a performance audit to understand how well a small number of public organisations govern their cyber security risk preparedness and response. This work will include looking at the extent to which governance relies on, and is informed by, the Protective Security Requirements, including the work of the National Cyber Security Centre* and other relevant organisations.

* The National Cyber Security Centre is part of the Government Communications Security Bureau. Its role is to help New Zealand's most significant public and private sector organisations protect their information systems from advanced cyber threats.

Significant investments

In 2023/24 we will publish a performance audit looking at the investments the Government has made through the New Zealand Upgrade Programme and shovel-ready fund. Both are major infrastructure investments. We are assessing the effectiveness of the systems and processes that underpinned the decision-making for these investments.

Planned work: Systems and processes underpinning government decisions on major infrastructure investment
In late 2019, the Government announced its $12 billion New Zealand Upgrade Programme. In May 2020, the Government announced that the Covid-19 Response and Recovery Fund had set aside $3 billion to fund infrastructure projects across the country. This portion of the fund is commonly referred to as the "shovel-ready fund". The fund was targeted towards infrastructure investments that can enable immediate job creation, generate other public benefits, and have construction activity under way within 12 months.

In 2023/24 we will complete our performance audit assessing the effectiveness of the decision-making systems and processes that have underpinned investment decisions for the New Zealand Upgrade Programme and the shovel-ready fund.

Infrastructure resilience

We surveyed the public about the issues they would like us to look at. This year we asked for feedback on specific topics relevant to our strategy. There was particular interest in the work the government is doing on maintaining and upgrading infrastructure. A performance audit on infrastructure resilience has been added to our work programme for 2023/24.

Planned work: Performance audit topic from public survey: Infrastructure resilience
We have included a new performance audit topic on infrastructure resilience into our work programme for 2023/24, following feedback from the public survey. This may include looking at essential services, such as electricity and communications networks or water assets. We will complete this work in 2024/25.

Following up on our performance audit work

We follow up most performance audits within two years of completing them. To do this, we write to the public organisation asking for an update on how it is progressing with our recommendations, and publish the response on our website. We also use that response to decide whether any further follow-up work is needed.

In 2023/24, we will consider what type of follow-up is appropriate for the matters raised in these performance audit reports:

3. Influencing more meaningful and useful performance reporting

For reporting to be meaningful, the public needs to be able to understand what services are being delivered at what cost, and the difference that is being made through the delivery of those services. We want to improve the relevance and transparency of performance information and how public organisations report on their performance.

We will continue to build on our programme of work designed to achieve this. We will work with and support the Treasury's work to improve how the public sector reports on its performance at the multiple levels at which it operates (from all-of-government funds/initiatives and cross-agency joint arrangements through to individual agencies).

In 2022/23 we started work to track performance across sectors, to provide Parliament and the public with a better view on how well the public sector is performing at a sector level. We started this work with a pilot looking at the transport sector. We will complete this work in 2023/24.

Planned work: Presenting a picture of sector-level performance reporting (transport pilot)
In 2023/24, we will complete our pilot in the transport sector, focused on public organisations that are within the Government Policy Statement for the transport sector and contribute to the Transport Outcomes Framework.* They include Waka Kotahi, Crown entities, and councils.

We will draw on and bring together publicly available information from the transport sector and provide commentary on how well the public sector is reporting on its performance. The focus will be on assessing the quality of performance reporting about what progress is being made on desired outcomes and priorities, major initiatives, value for money, and the quality of services provided. Our work will focus on identifying where there are gaps or issues in the quality of performance reporting as well as where the transport sector is reporting well on its performance.

The aim of this work is to enable Parliament and the public to assess how effectively and efficiently the public sector is using its resources to achieve the Government's transport objectives.

The pilot work will inform the approach we will take on other sectors or on outcomes for society as a whole.

* See Te Anga Whakatakoto Hua mō ngā Waka – Transport Outcomes Framework, at transport.govt.nz.

The External Reporting Board has released for consultation an exposure draft of a revised audit standard for service performance reporting. This has a proposed application date for periods beginning on or after 1 January 2024. We will be preparing guidance, training materials, and tools for applying the new audit standard.

The new audit standard provides an opportunity and catalyst for public organisations to improve how they are reporting on their performance.

Planned work: Assessing the quality of performance reporting
In 2023/24, our audits of significant public organisations will place more emphasis on testing the quality of performance frameworks (for example, demonstrating clear connections between what they deliver and the outcomes they seek to achieve), indicators, and information presented by public organisations.

This will include assessing whether public organisations comply with the new standard and good practice. We will have a particular focus on examining the performance frameworks and indicators of new and significant entities created through the public sector reforms.

We will also work with the Treasury to provide guidance, seminars, and workshops on implementing the new standard and good practice in performance reporting more generally.

Highlighting examples of good practice we see in the public sector is one of the main ways we encourage public organisations to improve their performance reporting. Seeing examples of good practice can help them to improve how they report on their performance.

In 2022/23, we published good practice guidance on performance reporting for central government. In 2023/24, we plan to publish good practice guidance on performance reporting for local government.

Planned work: Good practice guidance on performance reporting – local government
In 2023/24, we plan to publish good practice guidance on performance reporting for local government to support the development of councils' long-term plans (which are due by June 2024).

4. Increasing the focus on value for money

Central and local government spend more than $170 billion of public money each year. The public expects value for money and useful information to hold government to account for its spending. We want to increase the focus the public sector has on value for money.

As noted above, we will continue to push for more transparency about public spending and for more reporting about what is achieved with that spending. We will also report on the quality of information to support decision-making processes where significant amounts of public money are being spent.

We will continue to take an interest in the quality of investment planning to see how well public organisations understand the costs and benefits of significant areas of expenditure, how this understanding is used to inform decisions, and how benefits of investments are monitored over time.

Cyclone Gabrielle and severe weather events

A key area of government expenditure over the next few years will be the response to Cyclone Gabrielle. This has already involved significant public expenditure and is affecting the work of many public organisations.

We will track the funding of initiatives relating to severe weather events, along with how much has been spent and what has been achieved with that spending.

Public sector reforms

We know that the issues and questions that matter to Parliament and the public are often about outcomes for the whole of society or an entire sector. Increasingly, public organisations are working together across a sector or more broadly to improve outcomes.

One of our functions is to report on the performance of public organisations. We aim to provide Parliament and the public with assurance about how well public organisations are delivering what they are there to do.

We want to make it easier for Parliament and the public to understand how public organisations are performing. To do this, we plan to identify and draw together publicly available audited performance measures to see how well public organisations involved in major reforms are performing. We will use those measures to track their performance.

Planned work: Monitoring performance information in sectors undergoing major change
We maintain a database of financial and performance information of several types of public organisations. This information is compiled from audited annual reports, and we use this information to inform the different types of work we do (such as the annual review briefings we provide to Parliament's select committees).

The Government is currently carrying out significant reforms of the public sector. These reforms include tertiary education, the health and disability system, the resource management system, and how water infrastructure (drinking water, wastewater, and stormwater) services are delivered. A Ministerial review into the future for local government is also under way.

Using publicly available audited performance measures, we will seek to provide a picture of the performance of these sectors and regularly update that picture over the next few years as reforms are embedded.

This will help us, Parliament, and the public to understand the effect of the reforms on the performance of these public organisations and sectors. It will also provide some insight into how adequate this performance information is in telling a clear and comprehensive story of performance, and where there might be gaps.

5. Promoting a long-term view

New Zealand faces a range of long-term challenges (for example, those brought about by climate change, inequities in outcomes, and those caused by changing demographics). Planning and decision-making will need to take a long-term view and will require co-ordination across government – as well as high-quality information and reporting about progress – to respond to and address these challenges.

We want to encourage and promote long-term integrated planning in the public sector.

Over the next few years, we will build on what we learn from audits of planning documents, including councils' long-term plans, to provide good practice guidance and highlight public organisations that have a long-term view in their planning and decision-making.

We will also work with central agencies and other stakeholders to influence improvements to processes and tools for long-term planning and decision-making. Where relevant, we will include observations about the quality of long-term planning in our performance audits, and in following years will carry out specific performance audits on this topic.

Climate change and local government

The public sector has a key role in reducing emissions and adapting to the effects of climate change. The move to a net zero-carbon economy will require effective leadership, governance, and accountability arrangements. The effects of Cyclone Gabrielle demonstrated the challenge of adapting to adverse weather conditions. The risks, strategy, and financial effects associated with addressing these challenges will need to be transparent. Climate-related reporting requirements are also increasing in importance.

The estimated costs of adapting to, and mitigating, the effects of climate change are significant and increasing. The level and speed of change that might occur will be challenging for many public organisations.

Local government will play a significant part. Councils have an important role in understanding, planning for, and responding to the effects of climate change.

In our 2021/22 audits of the councils' long-term plans, we considered how councils factored climate change into their planning and proposed spending decisions, particularly for vulnerable areas (including areas that had significant infrastructure projects).

In 2022/23, we built on this work by starting a performance audit of how councils are responding to the effects of climate change. In 2023/24, we will complete that audit.

Planned work: Climate change and local government
We will assess how a cross-section of councils are preparing, and setting priorities, for their response to climate change, including steps they are taking to transition to a low-carbon economy and adapt to climate change effects. We will also evaluate how these councils assess and report on progress towards the climate actions they have committed to, and the resourcing and governance arrangements they have in place.

This work will provide us with a baseline to evaluate future progress. Our audit should help councils that are yet to decide on their climate actions.

6. Supporting strong organisational integrity practices

Maintaining public trust and confidence in the public sector is essential for public organisations to operate effectively, have the impact they are seeking, and achieve their stated outcomes. Trust is built over time and is maintained by demonstrating competence, reliability, and honesty.

When questions are raised about any one of these, trust can erode. It is therefore important that public organisations are seen to be meeting high standards of integrity.

We want to provide support for the public sector on maintaining and improving ethics and integrity in the way it operates.

We have created an integrity framework to help public sector leaders and governors take a whole-of-organisation approach to building a culture of integrity. We will also develop additional integrity resources to support the use of the framework, including resources on how to measure, monitor, and report on integrity practices.

We will continue to partner with Transparency International New Zealand to host regular Leaders Integrity Forums for public sector leaders. Speakers at these forums will cover topics relating to transparency, accountability, corruption-prevention, and integrity. A summary blog post will be published on our website after each forum.

Auditing integrity practices

To support long-term accountability, we will regularly monitor integrity practices across the public sector.

To date we have carried out an integrity audit looking at the management of conflicts of interest in councils. We have also started work looking at the use of emergency procurement rules.

Planned work: Looking at integrity in central government procurement
In 2023/24, we will continue our multi-year performance audit work on integrity.

In 2022/23, we started our audit into how government agencies support integrity practices when they procure goods and services in emergency situations, and how they provide transparency to the public. We are also interested in the role of senior staff in upholding integrity standards when procuring during an emergency. In 2023/24, we will conclude this work and consider further audits on aspects of our integrity framework.

In 2022/23, we started work to translate our integrity framework into a performance audit methodology we can use to assess the integrity culture in public organisations. We plan to finish this work in 2023/24 and apply it in integrity-related audits.

Operation Respect (New Zealand Defence Force)

Operation Respect, a programme aimed at eliminating inappropriate and harmful behaviours and sexual violence in the New Zealand Defence Force, was first launched in 2016. In 2020, the Ministry of Defence commissioned an independent review into the programme. The reviewers recommended that the New Zealand Defence Force request the Auditor-General to carry out an audit of the New Zealand Defence Force's progress on Operation Respect every two years for the next 20 years.

We will carry out regular performance audits of Operation Respect to determine how effectively the New Zealand Defence Force is implementing Operation Respect and achieving its outcomes. We are also completing regular monitoring work to assess the impact of the actions the New Zealand Defence Force is taking. Over time, we will look at whether it is achieving Operation Respect's outcomes.

The first audit for this programme focused on how effectively the New Zealand Defence Force had designed and reset Operation Respect. This, and the first monitoring report which established a baseline for measuring the New Zealand Defence Force's progress in implementing Operation Respect, were published in March 2023.

Planned work: Operation Respect second performance audit and monitoring report
In 2023/24, we will continue to monitor progress the New Zealand Defence Force is making with Operation Respect. Our next performance audit, which we are likely to start in late 2023/24, will look at the key initiatives that the New Zealand Defence Force has focused on. This may include the work currently under way to develop a new strategy or to enhance the discipline and complaints systems.

Supporting integrity in the Pacific

Building on our integrity work in the public sector, we will also continue to support the work the Pacific Association of Supreme Audit Institutions (PASAI) does to advocate for improvements in governance, accountability, transparency, and integrity with, and on behalf of, supreme audit institutions in the Pacific.

Planned work: Supporting integrity in the Pacific
We will continue to host, on behalf of PASAI, webinars for Pacific public sector leaders considering integrity-related topics.

We will continue to be active members of the IntoSAINT (a tool to assess public sector integrity) working group, representing the Pacific region.

We will share insights from the global committee to ensure the effective use of this tool in the region. Our support of IntoSAINT in the Pacific will include rolling out new facilitator guidance materials we developed (now provided to all working group members) to enhance the IntoSAINT resource package. This will support supreme audit institutions to apply the tool to assess their own integrity and support assessments of public organisations.

We expect to lead the completion of further training of IntoSAINT assessment facilitators in 2024. We will also work with other members of the working group to create new training materials.

Building on our integrity framework

In 2022, we created an integrity framework for the public sector. Although the framework was partially informed by Māori frameworks, there is more work to do to fully integrate te ao Māori into the integrity framework.

Planned work: Integrating Māori perspectives of integrity
In 2022/23, we started work to understand more fully what the concept of integrity means and looks like for Māori and how that could be applied in a public sector context. In 2023/24, we will consider the implications this work has for our integrity framework and accompanying guidance and how we can more fully integrate te ao Māori concepts into our integrity framework.

In 2022/23, we encouraged public organisations to assess their organisation using our integrity framework. However, measuring whether organisations are making improvements in integrity is not easy. Organisations have asked for additional guidance on how to best measure and monitor integrity.

Planned work: Guidance on measuring and monitoring integrity
In 2023/24, we plan to publish guidance on measuring and monitoring integrity. We will draw on the work we are doing in our organisation along with insights from developing an integrity audit methodology. It will also involve a literature review, with a focus on auditing culture and existing ethics and integrity assessment tools. We will have conversations with public organisations as they implement the integrity framework to document how they are measuring the different components of the work they are doing. Our work might include publishing case studies.

5: See Te Anga Whakatakoto Hua mō ngā Waka – Transport Outcomes Framework, at transport.govt.nz.

6: Government Inquiry into Mental Health and Addiction (2018), He Ara Oranga: Report of the Government Inquiry into Mental Health and Addiction, page 8, at mentalhealth.inquiry.govt.nz.

7: Statistics New Zealand (March 2023), Child poverty statistics: Year ended June 2022, at stats.govt.nz.

8: Statistics New Zealand (March 2023), Child poverty statistics: Year ended June 2022, at stats.govt.nz.

9: Advice to Ministers: Review of the Child and Youth Wellbeing Strategy – Findings and Recommendations, at childyouthwellbeing.govt.nz.