The Finance and Expenditure Committee (FEC) initiated the Inquiry into Performance Reporting and Public Accountability on 12 February 2025 and published Terms of Reference on 11 April 2025.

The inquiry aims to achieve two primary goals. First, it seeks to identify the strengths and weaknesses in the Government's current reporting processes and accountability mechanisms regarding its performance. Secondly, it aims to provide recommendations that ensure the Government's reporting and accountability systems are well-suited to meet the needs and expectations of 21st-century New Zealand. It adopted a two-phase approach to the inquiry.

On completion of phase 1 of the inquiry, the FEC released an Interim Report highlighting limitations in the current system, including unclear outcomes and complex reporting requirements. The FEC called for submissions, seeking feedback on proposed reforms to strengthen accountability, improve information quality, and ensure the system meets 21st-century needs.

In our submission we make the following six recommendations:

1. Move away from terms like inputs, outputs, impacts and outcomes, and focus on what matters most to New Zealanders.
2. Reevaluate how often and at what level performance reporting occurs across the public sector.
3. Require all performance reporting to comply with generally accepted accounting practice (GAAP).
4. Customise the assurance required over performance reporting.
5. Build capability across the public sector to strengthen the understanding and practice of public accountability and performance reporting.
6. Leverage technology to identify objectives, measure progress towards achievement of objectives, and communicate effectively what has been achieved.

Before the end of this term of Parliament, the FEC intends to produce a final report with specific recommendations for improving policy settings for performance reporting and public accountability.