Annual Report for the year ended 30 June 2006
Part 3: Departmental financial statements
Statement of objectives and service performance
For the year ended 30 June 2006
Objectives
The Estimates of Appropriations, Statement of Intent and Output Plan formed the framework for the definition of objectives and performance indicators by divisions within the Ministry. These were reviewed and adapted where necessary in response to external change during the year. In addition, at the end of each quarter, divisions formally evaluated their performance against their objectives in order to compare actual results with priorities, resource allocations and targets set at the beginning of the year. A quarterly report was made to the Minister of Defence on the delivery of outputs to the Crown.
Quality assurance
The Ministry applied to all outputs quality assurance processes designed to maintain professional standards and quality of work. These processes included: the provision of appropriate training and skilling programmes and career development opportunities; annual evaluations and reviews of staff performance; and managerial oversight. ISO 9001 accreditation has been maintained in the Acquisition Division. The Ministry maintains the financial management systems necessary to ensure that classes of outputs are delivered within approved appropriation and in compliance with the provisions of the Public Finance Act. Regular monitoring and reporting of expenditure against output forecasts was undertaken. Systems are in place to ensure working capital is managed at an optimum level and foreign currency exposure is minimised.
Output class performance
Performance for each output class is reviewed in the following statements of service performance. Each section of the statements sets out the outputs under review, and reviews performance in terms of the appropriate measures.
Measuring our performance
Measuring our performance is an important part of the managing for outcomes environment. In our Statement of Intent, published in May, the Ministry stated that it intended to develop a broad set of indicators that reflect the various aspects of its activities and report on progress towards measurement in its Annual Report.
Progress
In the period to 30 June 2006, the Ministry resolved to:
- review its strategic risks to produce an integrated risk management framework
- commence reviewing existing outcomes framework in collaboration with key stakeholders with view to investigating possible shared outcomes
- continue to develop and implement measures, with the assistance of central agencies, to assess the overall impact of interventions
- develop and maintain close working relationships on the above issues with key stakeholders.
