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IRD scores an 'A' for asset management

NZ Newswire logoNZ Newswire 26/07/2016

The Inland Revenue Department has scored an 'A' but the Corrections and Education ministries have mustered only a 'C' for their abilities to manage their assets.

Treasury has released the first tranche of its investor confidence ratings for state agencies that manage significant Crown investments and assets.

Six of 25 agencies have been surveyed, with the remaining three tranches to be completed by September 2017.

Finance Minister Bill English says the rating scale isn't about passing or failing as much as being a tool that they can use to improve their investment management.

"Just like companies have credit ratings which show how sound their investments are, we are requiring government agencies to obtain investor confidence ratings which show how strong they are at managing investments and assets like new schools, roads and IT projects," he said on Tuesday.

The scale runs from A to E, a low rating that indicates "significant assistance is needed for the investment to deliver results," Mr English said.

Higher rated agencies could expect greater autonomy, higher financial delegations and less onerous monitoring and reporting. Lower rated agencies would receive additional monitoring and support, Mr English said.

IRD's strong rating covers its information and communications technology and leased assets.

The Accident Compensation Corp scored a B for its property and ICT portfolios, and the NZ Defence Force and Ministry of Defence also gained a B for specific military equipment, property and ICT.

The New Zealand Transport Agency also gained a B rating.

Education got a C rating for its management of school properties and ICT assets, which is below the B level the Cabinet expects.

Corrections also missed the Cabinet's expectations by gaining a C rating.

There was "no evidence in this assessment to show it systematically assesses or reports on actual benefits achieved across its property projects and programmes."

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