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Annual Report for the year ended 30 June 2007: Working Better

VOTE ACC

Summary financial performance

Year ended 30 June 2007 Actual $000 Voted[15]* $000 Variance Fav/(Unfav) $000
Revenue Crown (GST excl)
Policy and monitoring
2,346 2,346 -
Regulatory services
99 99 -
Sub total 2,445 2,445 -
Revenue Department (GST excl)
Policy and monitoring
46 31 15
Sub total 46 31 15
Revenue Other (GST excl)
Policy and monitoring
19 18 1
Regulatory services
- - -
Sub total 19 18 1
Total Revenue 2,510 2,494 16
Departmental Output Expenses (GST excl)
Policy and monitoring
2,312 2,395 83
Regulatory services
89 99 10
Total Departmental Output Expenses 2,401 2,494 93
Output Classes Supplied by Other Parties (GST excl)
Case management and supporting services
55,739 55,739 -
Claim entitlements and services
432,238 432,238 -
Public health acute services
183,226 183,226 -
Sub total 671,203 671,203 -
Benefits and Other Unrequited Expenses (GST n/a )
Other Compensation
106,988 106,988 -
Sub total 106,988 106,988 -
Total Non-Departmental Expenses 778,191 778,191 -

Output class: Policy and monitoring

This output class includes policy, purchase and monitoring advice, research and evaluation, and ministerial servicing on the ACC scheme, and the performance of ACC.

The following elements will be required to achieve high-performing workplaces:

  • All parties having a shared understanding of the factors that lead to workplace productivity and an agreement on goals.
  • Labour market participants having information and guidance that is tailored, targeted and useful to increase awareness and uptake of excellent workplace practices, in order to effectively reduce occupational injuries and disease.
  • Responsive regulation of the ACC scheme that supports economic and social development.
  • More investment in research, evaluation, analysis and performance data about what is working or not working in the labour market.

Increased labour market participation will result from:

  • enhancing parents' and other carers' choices about work and family arrangements
  • enhancing employment for groups under-represented in the labour force.

The Department contributes to these goals by:

  • providing policy, purchase and monitoring advice that contributes to reducing injury in New Zealand workplaces, assisting those who are injured to return to work and ensuring levies are fair. This assists workplaces to effectively balance employers' and employees' needs and interests
  • providing policy advice and monitoring the implementation of policy for the ACC scheme
  • including vocational rehabilitation to assist people who are unable to return to their pre-injury occupation.
Contribution to the long-term goals

These services contribute to the Department's long-term goals:

  • Our workplaces: New Zealand workplaces will lead the world in maximising the value of work while providing a high-quality working life.
  • Our workforce: The skills of our workers will ensure that New Zealand enterprises are leaders internationally.
  • Our people: All New Zealanders will be able to grow and develop through access to well-paid and meaningful employment.
Contribution to the medium-term priorities

These services contribute to supporting and promoting the transformation of New Zealand workplaces to become high-performing and to achieve high-quality working lives by focusing on the workplace productivity drivers, including skills, safe and healthy workplace cultures, decent work and excellent employment relationships.

Activities

We do this by:

  • providing policy advice on the ACC scheme's regulation, ACC policies and practices, and interfaces with the health and welfare systems, and the workplace health and safety system
  • evaluating the impact of the ACC scheme and the ACC's activities in meeting the Government's objectives for injury prevention, rehabilitation and compensation, and wider social and economic goals
  • providing purchase advice on, and monitoring of, the performance of the ACC to assist the Minister for ACC to achieve the Government's objectives
  • managing the ACC board appointment process on behalf of the Minister for ACC
  • administering the ACC scheme's legislation and developing relevant regulatory changes on an annual basis (e.g. levy changes)
  • providing secretariat and advisory support for stakeholder interest groups.
Performance information
Performance standard Performance to 30 June 2007
The Minister for ACC is satisfied with the quality of the Department's policy advice. The Minister rated the quality of advice for 2006/07 at an average of 3.72 out of 5 (where 3 is average, 4 is good and 5 is excellent).
The Minister for ACC is satisfied with the quality of the Department's purchase advice and monitoring. The Minister rated the quality of advice for 2006/07 at an average of 3.72 out of 5 (where 3 is average, 4 is good and 5 is excellent).
The Minister for ACC is satisfied with the quality of the Department's ministerial servicing. The Minister rated the quality of the Department's ministerial servicing for 2006/07 at an average of 3.72 out of 5 (where 3 is average, 4 is good and 5 is excellent).
Policy, purchase advice, monitoring and ministerial servicing will be delivered. As agreed with the Minister for ACC and as detailed in the Vote ACC Output Plan for 2006/07. Policy, purchase advice, monitoring and ministerial servicing were delivered as agreed with the Minister for ACC and as detailed in the Vote ACC Output Plan for 2006/07.

Financial performance Figures are GST exclusive
Year ended 30 June 2007 Actual $000 Main estimates $000 Supp. estimates $000 Actual as a % of supp. estimates
Revenue:
Crown
2,346 2,615 2,346 100.0%
Department
46 31 31 148.4%
Other
19 - 18 105.6%
Total Revenue 2,411 2,646 2,395 100.7%
Total Expenses 2,312 2,646 2,395 96.5%
Net Surplus/(Deficit) 99 - - -

The decrease in appropriation of $0.251 million in the Supplementary Estimates was primarily due to a fiscally neutral adjustment to reflect a new cost allocation methodology established across the Department.

Output class: Regulatory services

This output class includes meeting the residual long-term responsibilities of the Accident Insurance Regulator by managing the Crown's ongoing risks resulting from the introduction of the competitive accident insurance market during 1999/2000.

Responsive labour market regulation supports economic and social development, which contributes to higher-performing workplaces. For New Zealand to become a world leader in workforce and workplace performance, workplace participants must develop an understanding of and demonstrate excellent workplace practices.

Contribution to the long-term goals

These services contribute to the Department's long-term goals:

  • Our workplaces: New Zealand workplaces will lead the world in maximising the value of work while providing a high-quality working life
  • Our people: All New Zealanders will be able to grow and develop through access to well-paid and meaningful employment.
Contribution to the medium-term priorities

These services contribute to supporting and promoting the transformation of New Zealand workplaces to become high-performing and to achieve high-quality working lives by focusing on workplace productivity drivers.

Activities

We do this by:

  • liaising with key stakeholders and responding to non-ministerial enquiries and complaints
  • residual collection of non-compliers' penalties
  • residual information management and servicing information requests
  • responding to any enquiries and complaints related to the competitive accident insurance market introduced in 1999/2000
  • administering the Insolvent Insurers Fund, should this be invoked.

Performance information
Performance standard Performance to 30 June 2007
The Regulator will respond to complaints and enquiries within five days of receipt, including responding within five days of receipt to notices of insurers failing to comply with their obligation under the 1998 Act. In 2006/07, the Regulator responded to all enquiries within five days.

Financial performance Figures are GST exclusive
Year ended 30 June 2007 Actual $000 Main estimates $000 Supp. estimates $000 Actual as a % of supp. estimates
Revenue:
Crown
99 130 99 100%
Other
- - - -
Total Revenue 99 130 99 100.0%
Total Expenses 89 130 99 89.9%
Net Surplus/(Deficit) 10 - - -

The decrease in appropriation of $0.031 million in the Supplementary Estimates was due to a fiscally neutral adjustment to reflect a new cost allocation methodology established across the Department.

Quality standards for policy advice

Policy advice

Ministers expect to receive policy advice consistent with the following quality standards:

  • Integrated: Advice considers the Government's priorities and the Department's goals and has been produced after involvement of all relevant contributors within the Department
  • Timeliness: Advice is produced in sufficient time to allow thorough consideration prior to decision-making, or within the timeframe agreed with the Minister.
  • Emerging issues: Advice is provided on emerging issues that are not part of the existing work plan.
  • Issue and objective: A clearly defined issue or objective to be achieved is provided.
  • Analysis: The analysis is sound and convincing - that is, appropriate analytical techniques are employed, convincing evidence is provided and there is a clear rationale for recommendations made.
  • Options: All viable options recognising a wider government perspective are identified and addressed.
  • Consultation: Where appropriate, the right individuals, government departments and interest groups are consulted at the right time, and their input is used appropriately.
  • Style and presentation: The report uses a satisfactory style and presentation.
  • Implementation: Where appropriate, information is provided on the implementation of the selected option(s), including feasibility issues, legislative implications, and assessment of fiscal, administrative and compliance costs.
  • Evaluation strategy: Where appropriate, advice includes how proposals have been or will be evaluated.
  • Impact assessment: Advice has considered the implementation impacts on private and public sector stakeholders and customers.
Application of standards

Note that all aspects of the standards may not apply to specific pieces of advice given considerations of urgency or the particular nature of the advice provided.

 


[15] Voted figures include adjustments made in the Supplementary Estimates and transfers under the Public Finance Act 1989.