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• Governance and Structure

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• 1999/2000

• Governance Overview
• Organisational Chart
• Ministers and Votes
• Crown Entities
• Management Structure
• Legal Responsibilities
• Management Controls and Risk Management

Governance Overview

The core governance arrangements for the Ministry conform to the pattern for all departments as set out in legislation. Annually, the arrangements centre on the Estimates approved by Parliament, on purchase agreements between the Chief Executive and the relevant Minister (for the outputs to be supplied, and the standards to be met for each Vote the Ministry administers) and on an overall performance agreement between the Chief Executive and the Responsible Minister - the Minister for Economic Development (covering both Ministry-wide and personal performance).

Alignment with the Government's objectives is achieved by use of the Government's Key Goals as the principal drivers of the Ministry's key priorities. These in turn become the central features of the purchase and performance agreements. Quality assurance is further provided by the role of the State Services Commission and other central agencies in advising on the form of the agreements and commenting on the content of the key priorities.

The governance arrangements also provide for monthly reporting on financial performance to the Treasury; quarterly and annual reporting on performance to Ministers; six-monthly and year-end reporting to the State Services Commission, and its annual appraisal of performance; and the Departmental Forecast Report and Annual Report to Parliament, which are followed by Select Committee examination. Audit New Zealand audits the Annual Report, on behalf of the Controller and Auditor General, and related material.

Variations in the governance structure relate principally to three entities attached to the Ministry in different ways:

• The Ministry of Consumer Affairs reports to the Minister of Consumer Affairs for its output purchases, but in other respects operates as a branch of the Ministry of Economic Development.
• The Energy Efficiency and Conservation Authority (EECA) has a Government-appointed board through which its outputs are agreed directly with the Minister of Energy but reports to the Chief Executive of the Ministry of Economic Development in respect of public service standards and in other ways operates as a branch.¹
• The Year 2000 Readiness Commission (Y2K Commission) operated with a board reporting directly to the Minister for Information Technology and Communications on its outputs while attached to the Ministry of Economic Development. The Commission closed on 31 March 2000.

Some other areas, such as the Industrial Supplies Office, have boards with advisory functions.

Organisational Chart

Ministers and Votes

The arrangement of Ministers and Votes at 30 June 2000 was as follows:

Crown Entities

The following Crown entities were funded through Votes administered by the Ministry of Economic Development during the year:

• Accounting Standards Review Board.
• Broadcasting Standards Authority.
• Commerce Commission.
• Securities Commission.
• Te Reo Whakapuaki Irirangi (Te Mangai Paho) - moved from the Ministry of Economic Development to Te Puni Kokiri from 1 July 2000.

While the Ministry administers the non-departmental appropriations to the Crown entities, they are directly accountable to Ministers for their performance in supplying agreed output classes.

The Ministry of Economic Development also advises Ministers on ownership interests relating to the following Crown entities:

• Standards Council.
• Testing Laboratory Registration Council.
• Takeovers Panel.

Management Structure

The Ministry operates with five branches (two operational, two policy and corporate) each headed by a deputy secretary, together with the Ministry of Consumer Affairs and EECA,² all reporting to the Chief Executive. The alignment of functions within the branches is set out in the Organisational Chart.

Legal Responsibilities

The Ministry has some 850 legal obligations specified in a wide range of acts and regulations that are listed as at 30 June 2000 in Appendix 2.

The identified obligations have been placed on an electronic database designed to ensure that the list of legal responsibilities and the arrangements for ensuring compliance are kept up to date. The system also records the point of responsibility within the Ministry.

Management Controls and Risk Management

The Ministry has in place a comprehensive set of management controls; budgeting, financial and asset management systems; financial internal controls and formal financial and human resource delegations; a series of Ministry-wide strategies including those for Human Resources, Information Management and Information Technology; a hierarchy of internal and external reporting requirements on both financial and non-financial (key priority and purchase agreement) activities; a Code of Conduct and a policy on security.

There is an active risk management regime in place operating under a Risk Management Charter approved by the Chief Executive. The strategic focus of the risk management approach is to embed a culture of risk management across the Ministry. The regime also incorporates branch and Ministry-wide risk profiles, business continuity (disaster recovery) planning and internal reviews of the management of potential risks.

¹From 1 July 2000 EECA became a Crown entity funded through the Ministry for the Environment.

²Until 30 June 2000 when EECA became a Crown entity funded through the Ministry for the Environment.