Statement of Intent 2005 - Evaluation, Audit and Risk Management

Our programmes of evaluation, audit, and risk management ensure that we remain fully accountable to our clients, the Government, our stakeholders, and the public of New Zealand.

Our research and evaluation programme monitors the effectiveness of our policies and programmes – both their substance and their delivery – and any external changes that may impact upon our work.

Our audit programme reviews the effectiveness of our activities and our compliance with policies and regulations.

Our risk management framework ensures that we identify, monitor and deal with risks to our business at all levels, preventing risks where possible and minimising their impact where necessary.

Research and evaluation programme

Our research and evaluations range from assessments of specific programmes to large, complex programmes that are undertaken over a number of years. The information we gather identifies how our work is making a difference to social outcomes, and what changes we can make if needed. The information also enables us to identify how external changes (for example, population changes) are affecting what is required of our business.

Research and evaluation teams in the Ministry focus on our five outcome groups: children and young people, working age people, older people, families and whanau, and communities, hapu and iwi.

Current evaluations are looking at government interventions in the areas of children, young people, families and communities, such as the New Zealand Youth Suicide Prevention Strategy, Youth Transitions, Family Start, Heartland Service Centres, and Working for Families. More information is given under each of our outcome areas within this document.

Evaluations are also underway of programmes aimed at helping people into sustainable employment, including Jobs Jolt, Work Services Case Management, and 2002 Domestic Purposes Benefit Reforms.

We make research and evaluation reports available online, and organise seminars and prepare working papers designed to stimulate debate on work in progress.

We publish the Social Policy Journal of New Zealand, which provides a forum for informed debate on social research and policy.

We host the Social Policy Evaluation and Research Committee (SPEaR). This inter-agency committee aims to improve the co-ordination and quality of social research and evaluation, and to encourage networking within the social research and evaluation community. SPEaR publishes a quarterly bulletin and supports social researchers and evaluators through the Linkages programme.

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Audit programme

Our audit programme is an integral part of our accountability framework for compliance with government policy on how government agencies conduct their business.

All audits are designed to provide audit assurance over:

the reliability and integrity of information
compliance with policies, procedures, plans and regulations
the safeguarding of assets and property
the economical and efficient use of resources
the achievement of objectives and deliverables.

We undertake four kinds of audits:

Core audits cover infrastructure activities, business support systems, processes and controls and the operational activities of service delivery groups. These audits are done constantly and provide a continual flow of information about risks, the effectiveness of controls, and the control environment.
Risk-based audits cover issues that arise directly from risk management. They tend to be unique and cover a wide diversity of subject areas.
Follow-up audits establish what progress has been made in implementing suggestions and recommendations agreed to in both internal and external audit reports.
Non-programmed audits respond to requests for assistance and usually cover inquiries, investigations and advice sought by managers. They frequently resolve issues and concerns before they escalate into serious concerns and risks.

Over the next two years, we have scheduled 44 risk-based audits and 19 core audits. Experience indicates that non-programmed audits will require up to 30-40% of audit resources. Resources have been allocated to undertake this work, but it could require some re-prioritisation and slippage of programmed audits.

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Risk management programme

Risk management is an integral component of all our operations, from setting priorities through to achieving goals and milestones. We are committed to ensuring that each group manages risks as an integral component of its management responsibilities.

Our risk management programme ensures that, as part of standard management practice, we identify, evaluate, address, and monitor all risks. A risk is the chance that an event will do one or more of the following:

adversely impact on the achievement of our objectives
lead to a marked deterioration in operational performance
cause significant financial loss to the Crown
substantially undermine ministerial, government or public confidence in the Ministry.

Our risk management framework involves the systematic application of management policies, procedures and practices to identify, analyse, evaluate, manage and monitor risks. The objective is to reduce the likelihood and consequences of risk and to ensure risks that do materialise are effectively managed. Most risks cannot be eliminated altogether, but can be managed and reduced to a point where further effort is not required or justified.

With delivery of services that directly affect over a million New Zealanders, our work is important to many in the community and is always under intense media, political and public scrutiny. The nature of our business inherently carries substantial risk, and the delivery of benefits and payments requires us to manage significant financial, physical and people resources. We invest considerable effort in managing risk to reduce the likelihood of failure, error or disruption and to minimise the harm that would arise should any of these occur.

Risk management within the Ministry is linked to our planning framework

Our Statement of Intent looks out over three years and beyond and describes the social development outcomes we want to achieve for all New Zealanders. Risks identified here have a strategic external focus. Managing them requires collaboration with other government agencies, non-government organisations and community groups.
Our Strategic Business Plan contains our business and enabling strategies for achieving our social development outcomes. Risks identified here have a tactical organisational focus. Managing these risks involves balancing the allocation of resources to strengthen our capability in the longer term with the need for sustaining and growing our capacity in the shorter term.
Our Annual Plan covers the results that we intend to achieve during the upcoming financial year. Managing risks at this level is focused on our performance.

The Ministry’s top ten risks

We have identified the following high-level strategic risks as the focus for risk management by the Leadership Team. We manage these risks by regular monitoring and reporting in monthly reports, and quarterly assessments of their significance and likelihood of occurrence.

Risk	Focus	Description
Our critical business systems fail us	Systems	We need to have resilient IT support that ensures we have the capability, capacity, flexibility and responsiveness to meet our business needs on a sustainable basis.
We don't deliver to our stakeholders	Performance	To deliver results we need to ensure that: our social research and policy advice are evidence-based and aligned to the government's social vision for New Zealand our service delivery provides our clients with the assistance they require and the benefits they are entitled to.
We can't attract and retain the right people	People	Our people are our greatest asset. We need to ensure we have the right people, with the right skills, at the right time, and in the right place.
People are not safe	Safety	We must ensure people are safe and secure in our work environment. We need to take every reasonable care to ensure that people are protected from physical harm, stress and emotional or intellectual abuse.
Stakeholders lose confidence in us	Reputation	We must serve the people of New Zealand with honesty and integrity. We manage our relationships in a way that builds trust, credibility and confidence in the eyes of our stakeholders.
Risk	Focus	Description
Poor financial management	Financial	We are accountable for the efficient and effective use of taxpayer's funds, while also ensuring that we have financial sustainability into the future.
Our strategies are not future-proofed	Forward planning	Our strategies and ensuing plans must be developed with an understanding of the longer term environment within which we operate. Analysis of factors such as demographic trends, economic and social forecasts must underpin the Ministry's service provision.
We lose focus on our purpose	Strategy and direction	Our business strategies must be outcomes-focused, and contribute to social development for all New Zealanders.
We are not prepared for civil emergencies	Preparedness	We have a responsibility to plan and ensure that we can respond in a timely and effective manner to civil emergencies. Priority core activities, such as making payments to clients, must continue despite any emergencies that may be occurring.
We don't comply with legislation	Legal	Our policies, procedures and practices must comply with the wide range of legislation that impacts on the Ministry.

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