Annual Report for the year ended 30 June 2008
Part 3: Statement of service performance
Statement of objectives and service performance
For the year ended 30 June 2008
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 evaluate their performance against their objectives in order to compare results with priorities, resource allocations and targets set at the beginning of the year. Quarterly reports were made to the Minister of Defence on the delivery of these 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 skills 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.
Cost effectiveness of the Ministry's interventions
A necessary first step for demonstrating that expenditure is cost effective in achieving desired outcomes is to be able to specify those outcomes in measurable terms. In a defence context, this is a difficult task. The Ministry has been leading a Cabinet-mandated exercise through which government agencies in the security sector are working together to specify relevant government outcomes in measurable terms. Good progress has been made and the exercise is expected to be completed in the 2008/09 year.
