About us
Part 1: Quality assurance, evaluation and risk management
The Corporation's services and products need to deliver good value for money for the Crown.
We must be fully accountable to our customers, the Government, our stakeholders and the New Zealand public. We need to carry out rigorous research and evaluation of the effectiveness of our activities to achieve this. We will check our compliance with relevant requirements and ensure sound management to minimise or prevent the impact of identified business and other risks.
The overall result sought from our research and evaluation work is to find ways of better meeting our customers' housing needs and achieving the Government's desired housing and social outcomes. Much of our work is directed towards assessing how well the Corporation is producing its outputs, and where improvements could be made and how. We also analyse and assess the possible impacts on our services that could result from wider social and housing trends and issues in housing.
Our research and evaluation work includes programme evaluations, housing research and customer-focused market research. Significant projects being undertaken include the Healthy Housing and Community Renewal outcomes evaluations, Housing Innovation Fund, and the Rural Housing Programme evaluations, as well as various projects related to home ownership.
Current housing research work includes the preparation of quarterly Regional Market Monitors that describe local market trends. Market research includes analysis of customer interactions with our Housing Assistance team, and various research projects on customer groups and their needs, such as tenant participation in decision-making.
The Research and Evaluation team works closely with internal and external stakeholders to ensure this work is well planned, designed and implemented, and that the findings inform the design and delivery of programmes and policies. We aim to make our findings widely available to inform debate on housing-related issues. We intend to make research and evaluation reports available on the Corporation's website. We will work with stakeholders to improve our strategic planning of general housing research over the next three years. We aim to improve the integration of our work with other groups undertaking housing-related research and ensure the priorities for taking on work meet the needs of our stakeholders.
The Corporation's internal audit work is undertaken within an overall annual Assurance Plan that is developed and overseen by the Board's Assurance Committee. This committee operates under a charter. Its purpose, in respect of the Corporation and its subsidiaries (the Group), is to ensure:
- effective management of financial risks
- reliable management and financial reporting
- compliance with laws and regulations
- effective management of risks that threaten key strategic and operational objectives as described in the Objectives, Risks and Controls Alignment programme
- effective management of risk recognising, in particular, issues specific to public sector scrutiny
- effective management of material litigation
- maintenance of an effective and efficient internal and external audit function.
The Objectives, Risks and Controls Alignment programme is carried out within the Corporation's risk framework, see the section 'Identifying and assessing risk' below.
Audits are prioritised in the following order.
- 'Must do' audits of control processes for mitigating risks that the Assurance Committee and management agree to be highest priority.
- Core assurance audits that the committee and management expect will be completed.
- Audits dependent on changing risk profiles. These may require extra resources.
In addition to these risk-based and core assurance audits, we may also undertake special assignment audits (usually to investigate complaints, issues or concerns) and follow-up audits. The latter are usually carried out to assess the progress made to implement earlier recommendations.
Our risk management framework aims to ensure we can identify and monitor potential risks and are able to anticipate issues and problems. Our desired business response is to avert or mitigate threats to our performance and to minimise their adverse effects as, or before, they occur, and at reasonable cost.
The Corporation faces the typical range of risks associated with commercial operations, as well as risks associated with providing social services. The nature and severity of risks may change, so we work to maintain a good understanding of our risk environment and to develop effective responses. Risks to our overall service provision could lead to unsatisfactory financial, service and policy performance. Other risks that may affect performance include natural events, such as floods and earthquakes, or specific risks that could result from criminal action by staff or systems failure. We have specialised risk management plans to handle these risks.
There is also the possibility of a perception of failure, which may or may not reflect our actual performance. The Corporation's risk mitigation processes must manage any credibility risk that could be linked with unrealistic stakeholder expectations, or any failure to communicate its successes.
The Board's Assurance Committee regularly reviews the strategic risks and maintains a national risk management framework. It records and monitors all key strategic and operational risks. Our strategic risk management framework identifies the most significant risks that could materially affect our ability to achieve the Government's outcomes.
We manage these risks by:
- developing and maintaining up-to-date risk management plans
- regularly reporting on risks and mitigation strategies
- undertaking regular reviews by the Board's Assurance Committee
- ongoing oversight of risk mitigating strategies by the General Manager of Assurance Services.
The table opposite sets out the most significant risks the Corporation faces and its response to each risk. The risks are not ranked - as effective management of all the risks is critical to the Corporation's success.
| Risk | Response |
|---|---|
| Stakeholders lose confidence in the Corporation. |
The Corporation values its reputation for delivering high quality housing-related services and working with stakeholders and business partners in ways that demonstrate good faith in our dealings. The New Zealand Housing Strategy will be implemented in ways that ensure that confidence in the Corporation is maintained and strengthened. Relationships will be based on mutual trust, confidence and a commitment to develop the capabilities of stakeholders where possible. Advice and briefings to the responsible ministers will be based on a 'no surprises' policy to ensure they are aware of material issues. |
| Level of service to housing customers, including business partners, declines. |
Know customers well and ensure housing and related services are relevant to customer needs and are provided according to the Government's housing policies. We forecast demand and identify planning responses needed to deliver the required level of services. Services to our existing or potential business partners, such as social housing providers, will meet their capability development and service performance needs. Levels of customer satisfaction will be monitored and the design and delivery of our services will be amended if appropriate. |
| Critical business systems, including management information systems, fail leading to a lack of oversight of the business and inability to deliver. | Information technology and other management systems will be robust and ensure business needs can be met on an ongoing and sustainable basis. They will also be capable of delivering timely warnings of any possible failure. |
| Failure to preserve the amenity level and value of our housing. | Asset management policies will support our stewardship responsibility and ensure the appropriate planned investment and maintenance of our housing portfolio as part of our overall asset management cycle. Reconfiguration of the housing portfolio will be undertaken as necessary to better meet our customers' needs. |
| Financial performance falls below target and productivity gains are not achieved. | Financial systems will protect the Crown's investment and meet financial performance standards on a sustainable basis. |
| Loss of focus on priorities given the broad range of functions required of the Corporation including its legacy functions and new initiatives. | Strategic planning will be outcomes-focused, with relevant performance-based targets for management. It will contribute to achieving a suitable balance between our business activities as we work towards the Government's social and commercial goals. |
| Failure to comply with legislation and regulation. | Policies, procedures and practices will ensure we comply with the wide range of legislation that affects the Corporation's governance and its operations. Service delivery will comply with all applicable legislation, regulation and codes administered by local authorities. |
| Failure to achieve and maintain the required level of staff capability. | The Corporation will recruit, develop and retain staff to ensure we have the capability to achieve its outcomes and optimum return for its investment in people. Performance management, remuneration and career development processes need to support this. |
| Policy advice is not influential. |
Our ability to provide sound policy advice to ministers will be assured by developing and maintaining suitable levels of strategic policy capability. This requires the Corporation to plan and carry out housing-related policy research and analysis, and provide high quality advice. The quality of our advice will also depend on our ability to engage effectively with other stakeholders. The Corporation is reviewing how it will manage the development of its expanded policy group. This work is a priority. Key capability-development responses will be implemented when the review is completed. This will include ensuring high quality appointments to key positions, and the provision of staff training and skill development opportunities. We will also develop work programming processes that prioritise and resource high value policy work. |
| The Corporation is unable to respond to future events, and social and economic changes, with particular concern about development and growth in Auckland. | The Corporation will have a thorough understanding of its long-term operating environment, and all relevant social, commercial, demographic and policy factors that could affect its operations. The Corporation will also be able respond appropriately to sudden issues such as civil emergencies and earthquakes. |
| Business planning does not effectively support the Corporation's work. |
Our business plans, their development and implementation will support staff to deliver the right mix and quality of services to achieve the Corporation's stated outcomes. The Corporation's business planning activities are based on the Managing for Results/Outcomes requirements and other accountability requirements set out in the Crown Entities Act 2004. The Corporation is giving priority to implementing these requirements in full at all levels of management in the organisation. This will be supported with information and education about business planning requirements and discussions with staff to obtain their commitment to planning for, and working towards, results. |
| The Corporation is not sufficiently aware of potential business threats. |
Our internal audit and overall assurance processes and systems will be robust and provide the Board with the assurance that the Corporation's services are delivered in compliance with all relevant requirements, and that any issues or problems that might adversely affect the Corporation's performance are promptly and fully identified for the Board. As a priority, the Board will review the Corporation's internal audit and related assurance processes, and re-scope these roles and options for carrying out these functions. |
