Finance Minister Bill English said yesterday the first Government agencies assessed in a new Treasury investor confidence rating system had been rated at mid to high levels for their investment management practices.
Tranche 1 results are for the first 6 of 25 agencies and showed overall they had very good investment management practices in place. 4 received a B rating or higher. On a scale of A to E, A signalled a high level of performance, C indicated sound practices were in place and E indicated significant assistance was needed for the investment to deliver results.
Inland Revenue attained an A, the Accident Compensation Corp, Defence & the NZ Transport Agency Bs. The Ministry of Education & the Department of Corrections were rated C.
Mr English said: “The rating provides a valuable evidence-based assessment of how the Crown’s most investment-intensive agencies are performing and where they have scope to improve further.
“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 & assets like new schools, roads & IT projects.
“The rating isn’t about a pass or fail, it’s a tool that agencies can use to lift aspects of their investment management that would benefit from better systems or processes.
“Agencies that receive a very good rating can expect greater autonomy, higher financial delegations and less onerous monitoring & reporting, while agencies that do not rate as well will receive additional monitoring & support.”
Mr English said further tranches would be released this year & early next year.
Link: Tranche 1 results
Attribution: Ministerial release.