Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 30 JUNE 2022
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G.31 Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 30 JUNE 2022 Protecting the health and wealth of New Zealand 1 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Partnering to ensure your wellbeing IANZ protects the health and wealth of New Zealand by ensuring Telarc is New Zealand’s leading certifier of quality, environmental, that the companies that test or food, and occupational health inspect the products and services and safety management systems. The Accreditation Council is an autonomous Crown Entity with we use are safe, accurate, and Telarc provides auditing services statutory functions under the Standards and Accreditation Act 2015. aren’t doing us harm. that focus as much on business improvement as they do on Trading as International Accreditation New Zealand (IANZ), it adds standard compliance. value to businesses by providing independent assurance of their We do this by ensuring testing laboratories, inspection bodies, technical competence. building consent authorities and We do this by coming into a medical imaging providers meet business to provide a relevant The Council also offers certification services through its 100% international standards and and impartial intervention giving owned subsidiary, Telarc Limited (Telarc), New Zealand’s largest can demonstrate that they confidence to interested parties management system certification body. are competent. that the activities being undertaken reflect the organisation’s policies To assist customers and businesses to meet the requirements of and procedures. IANZ is the New Zealand signatory accreditation or certification, the Council also offers training services to the International Laboratory through the New Zealand Quality College (NZQC). Accreditation Cooperation Telarc is formally recognised (ILAC) Mutual Recognition as an accredited certification/ Agreement (MRA). This means IANZ registration body by Joint accreditation is recognised Accreditation System – Australia around the world, giving and New Zealand (JAS-ANZ), New Zealand companies a a member of the International competitive advantage and access Accreditation Forum (IAF), the to new market opportunities. world association of conformity assessment accreditation bodies. When our overseas trading partners see that a product has a report or This means our assessments certificate with the IANZ symbol, are rigorous and assured by an they can have confidence in independent third party, which results that are world-class. IANZ in turn assures our clients of our accreditation helps protect competency and impartiality, New Zealand’s global reputation and our clients’ customers of the as a responsible producer of quality and integrity of the systems quality products. that help produce the goods and services they purchase. 2 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 3 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Support and Protect Protecting so many aspects of New Zealand life Our wine production Our vehicles Our homes Our workers Our food production Our cafés and restaurants Our infrastructure Our primary exports Our healthcare Our drinking water Our manufacturing Our cranes 4 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 5 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Contents Known by New Zealand, trusted by Chair and Chief Executive’s Foreword 8 Board Statement 10 The conformity assessment framework 12 New Zealand How IANZ works 16 How Telarc works 18 Our role in 2021/22 22 Our Vision: Protecting the health and wealth of New Zealanders 28 Strategy 1: Enhancing safety 30 Strategy 2: Enabling trade 38 Strategy 3: Partnering with customers and regulators 44 Strategy 4: Improving productivity and resilience 48 Strategy 5: Improving awareness of IANZ and Telarc 49 Strategy 6: Caring for all our people 50 Strategy 7: Care for all our planet 52 Strategy 8: Care for our community 53 Alignment with Government policy and SOI 54 Consolidated Targets F2022 56 Copyright ©. This work is licensed under the Creative Commons Attribution 3.0 New Zealand License. In essence, you are free to copy, distribute and adapt Financial Statements 58 the work, as long as you attribute the work to the Accreditation Council and abide by the other license terms. To view a copy of this license, visit http:// creativecommons.org/licenses/by/3.0/nz/. Please note that the governmental Notes to Financial Statements 62 Coat of Arms, IANZ and Telarc logo may not be used in any way which infringes any provisions of the Flags, Emblems, and Names Protection Act 1981 or Appendix 1: Statement of Significant Accounting Policies 63 would infringe such provision if the relevant use occurred within New Zealand. Attribution to Accreditation Council should be in written form and not by reproduction of the Governmental Coat of Arms and IANZ and Telarc logos. 6 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 7 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Chair and Chief Executive’s Current year The Council continues to support the public health response to the Covid-19 crisis with Foreword ongoing accreditation of laboratories undertaking testing. Of particular note, Council initiated the establishment of a technical and clinical advisory forum on Covid-19 testing through which it continues to engage with the Ministry of Health and laboratories. Introduction The Council is also helping indirectly with the overall Covid-19 economic response through its The Accreditation Council is an autonomous, self-funding, Crown Entity with statutory technical and advisory work with a range of government and professional agencies, helping functions under the Standards and Accreditation Act 2015. them to develop related policy and to achieve regulatory outcomes. The Council contributes to many aspects of life in Aotearoa New Zealand by working with The Council has made excellent progress with its Four Pillars Transformation Project, making organisations that test or inspect products and services to assure they comply with standards significant organisational, structural and service delivery improvements. The Council and regulations, operate competently and produce accurate results. continues to invest in information technology systems to improve the efficiency and effectiveness of assessment and audit processes through the development of audit tools and Our strategic priority is to promote the health and living standards of people in utilisation of new technologies. Aotearoa New Zealand by helping improve: Despite international travel being suspended, the Council has continued to co-operate • safety and quality of products and services; internationally and represent the interests of Aotearoa New Zealand on international accreditation bodies, particularly in the wider Asia-Pacific region. • health and safety in the work place; • trade; Year ahead • environmental protection; In the coming year the Council will continue to work towards protecting the health and living standards of all New Zealanders taking into account Government’s key strategies and goals. • productivity and resilience and The Council will work to meet the changing needs of customers and stakeholders as the • health and safety. nation works through the consequences of Covid-19. The Council remains financially sound and has budgeted for a consolidated net surplus after tax of $754k. The business remains a viable going concern and has adequate cash reserves We aim to achieve this strategic priority by providing world-class accreditation, certification to support future strategic investment and growth. and related services to an increasingly wide range of organisations. This Statement of Performance Expectations describes what we will deliver in the year to 30 June 2022 and how we will measure our progress. Paul Connell Fiona Paulin Chair Acting Chief Executive 8 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 9 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Board Statement This SPE reflects proposed performance targets and forecast financial statements for the period 1 July 2021 to 30 June 2022. It is produced in accordance with the requirements of section 149E of the Crown Entities Act 2004. The forecast financial statements and underlying assumptions in this document have been authorised as appropriate for issue by the Accreditation Council in accordance with its role under the Crown Entities Act 2004. The Accreditation Council proposes to supply four classes of outputs in the coming financial year: 1. Accreditation services 2. Certification services 3. International recognition services 4. Training and other services Because the Council is self-funded, those output classes are not “reportable” under the Crown Entities Act. However, the Council has chosen as a matter of good governance practice to state the intended outcomes and performance measures for each output class. These statements are arranged under each of the Council’s strategies (where relevant). The Council has also chosen to state the expected revenue and expenses for each output class in the Statement of Forecast Revenue and Expense. Telarc’s wholly owned subsidiary, Telarc Holdings Limited, a non-trading entity that owns Telarc’s older trademarks, produces no outputs. Paul Connell Marion Eades Chair Chair Audit and Risk Committee 10 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 11 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
The conformity assessment framework Government International New Zealand Establishes regulatory standards Mutual Recognition Government and carries out enforcement on Arrangements & Regulatory non-compliance. Recognises APAC/ ILAC/ Authorities Accreditation Bodies IAF/OECD Accreditation bodies Attest to the competence of JAS-ANZ Conformity Assessment bodies to International Joint Accreditation carry out conformity assessment Accreditation System of Australia activities against regulatory and New Zealand and New Zealand other standards. Conformity Assessment Bodies Certification Assess conformance of products, Bodies Inspection processes and services against Laboratories product, personnel Bodies regulatory and other standards & management or specifications. systems Product or Person certified Management Users and consumers of Product tested Product marked process inspected as meeting system audited products, processes or & certified as to show it meets & certified as specific standards & certified services have assurance meeting standards standards or meeting standards of qualification & as meeting that standards or or specifications specifications or specifications experience standards specifications are met
IANZ’s role Serving all New Zealanders: An The people and government of New Zealand want an independent accreditation body they can rely on to help keep Crown entity them safe. IANZ aims to be rigorous, fair and independent. We assess a client’s people, equipment, processes and accredit the competence of the organisation. Government departments Serving New Zealand regulators: Regulators want to protect people and at the same time enable business and achieve systemic and positive change. This can be very hard. IANZ aims to be the regulator’s proactive partner in achieving oversight and regulation of an industry. Ov er sig ht & re la gu tio n Industries of an Serving New Zealand industry: in du st Businesses want to deliver high ry quality practical service and continuously improve. But they are often time poor and sometimes resource constrained. IANZ aims to be a customer’s solution-focussed partner.
How IANZ works IANZ’s role in IANZ accredits laboratories that test products and items for safety and conformance, including organisations that provide critical diagnostic testing and medical imaging services. Inspection bodies the value chain People are also accredited for domestic food safety inspection, engineering safety (e.g. cranes, pressure equipment), and fire sprinkler inspection. All Building Consent Authorities (BCAs) are also accredited by IANZ. For example, IANZ accredits testing laboratories that test meat for Example: export as part of the Ministry of Primary Industries process to meet Processing New Zealand Processes meat for export Testing Laboratory Overseas Market Access Requirements. IANZ Accredited We assess a client’s: Testing and Equipment People Results Equipment Sampling Testing Results IANZ Client benefits There are commercial benefits to IANZ accreditation for clients: recognition, assurance and direction. And working with IANZ recognises and enhances a client’s own expertise. Processes Recognition Assurance Direction Commercially valuable Knowing you are doing Simple, actionable advice and recognition of quality the right thing direction on what to change 16 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 17 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Livestock collection Livestock transport Meat production How Telarc works Telarc-certified processes Telarc’s role in Telarc audits compliance against food and wine safety, quality, health and safety, and environmental management system standards. Telarc certification provides independent assurance the value chain that agreed standards are being achieved that comply with international and New Zealand standards. Organisations and regulators utilise certification for a number of reasons including business improvement, customer demand, minimisation of risk, and Example: to create recognised benchmarked consistency for producers in Processing New Zealand highly visible and environmentally challenged industries. meat for export For example, a New Zealand wine business Supply chain and logistics Telarc-certified processes Telarc Client benefits Environmental Quality Health + Safety There are commercial benefits to Telarc certification for clients, including confidence and internationally recognised compliance, that gives them the mark of success. Processes Processes Processes Recognition Confidence Compliance Commercially valuable Knowing that all activities reflect Meeting local and recognition of quality. the organisation’s agreed policies international standards. and procedures. 18 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Other examples of Telarc’s work We let you know that a motorway is being constructed in a well-managed manner to protect: • Quality • Environment • Health and safety Or for a meat producer, we let you know that they are adhering to the proper processes for: • Livestock collection • Livestock transport • Meat production • Product testing • Waste discharge 20 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Our role in 2021/22 Providing The Accreditation Council is responding to these immediate challenges and opportunities in four main areas: protection Resilience and recovery in a changing • We will support free trade negotiations that open up more opportunities for Kiwi businesses. world • We continue to grow our own resilience so we can keep providing quality services. New Zealand needs strong and adaptable accreditation and certification. Accreditation and • Accreditation will continue to play a vital role in assuring the laboratories that certification support trust and provide protection. conduct COVID-19 testing and protect everyone’s health. They show New Zealanders which goods and services are safe and meet quality standards. They also ensure that risks are identified and managed, Service and partnership and support economic activity. • We will grow our partnership approach with customers. Trust and risk management are even more • We will provide constructive support while continuing to uphold and, where important in these uncertain times as the full impact necessary, enforce quality standards. of the COVID-19 pandemic plays out. Innovation and flexibility • We responded to the COVID-19 crisis with a rapid pivot to remote assessments and we ensured service continuity. • We will make a significant proportion of NZQC training available virtually and introduce new online courses. Awareness and engagement • We will ensure more industry leaders and clients know about accreditation and certification and the benefits they provide. • We will engage more with regulators to help them as they protect the public by upholding quality standards. The Council is a public benefit entity, which means that we provide accreditation and certification services to support positive social outcomes, not to make profits. We are always striving to serve the people of New Zealand effectively. 22 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 23 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Our role in 2021/22 (continued) Driven by care for our people and place The Council is also maintaining its focus on long-term fundamentals throughout the coming year. In particular, we will focus on three main areas: Our journey with te ao Māori and Te Tiriti o Waitangi We acknowledge the Government’s expectation that we embody a good faith and collaborative approach to Crown-Māori relationships. We are committed to growing our cultural capabilities so that we can better partner with Māori and Māori organisations. Our role as stewards of natural capital We acknowledge Parliament’s declaration of a climate emergency and the Government’s expectation that the State sector will lead by example in matters of sustainability. We are committed to sustainable practices and to reducing our carbon footprint. Our contribution to wellbeing We acknowledge the Government’s expectation that all forms of capital – financial, human, natural, and social – are needed for wellbeing, and that success should be understood holistically. We are committed to considering each of these capitals in our work and in future strategy development. 24 Accreditation Council Annual Statement Statement of Performance Of Performance Expectations Expectations 1 July 2021—30 1 July 2020—30 June 2022 June 2021 25 Accreditation Council Annual Statement Statement of Performance Of Performance Expectations Expectations 1 July 2021—30 1 July 2020—30 June 2022 June 2021
Our role in 2021/22 (continued) Statement of Forecast Service Performance 2021/2022 As an autonomous Crown entity, the Accreditation Council must have regard to Government policy as directed by the Minister. The Council has considered the Minister’s Letter of Expectations, and policies including: Government’s Economic Plan: Balancing the four components of wellbeing – financial, human, natural, and social capital - to build a more productive, sustainable, and inclusive economy. Government’s Commerce and Consumer Affairs priority: Playing an effective role within an integrated and coherent system working with a range of agencies and parties, and contributing to a resilient, adaptable, productive and inclusive economy. Government’s Conformance System Strategy Focus Area One – Organisational Performance and Governance: Organisations and arrangements for conformance are working together to uphold and embed best practice. Focus Area Two – Regulatory Quality and Practice: Regulatory systems use the conformance system effectively to support their objectives for public health, safety, prosperity and wellbeing. Focus Area Three – Partnerships for Skills and Value: The adoption of information and technological innovations is accelerated to create additional value for business and consumers. High quality services are readily available at reasonable cost. Focus Area Four – International Connections: The conformance system upholds market access objectives, encourages innovation and upholds robust and reliable assurances about the quality of our imports and exports. 26 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 27 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Vision: Protecting the health and wealth of New Zealanders Strategy 1: Strategy 2: Strategy 3: Strategy 4: Strategy 5: Strategy 6: Strategy 7: Strategy 8: Enhancing Enabling Partnering Improving Improving awareness Care for all Care for our Care for our safety trade with customers productivity and and understanding our people planet community and regulators resilience of IANZ and Telarc IANZ IANZ IANZ IANZ IANZ IANZ and Telarc IANZ IANZ • Accreditation • Easier access to • Providing value to • Better practices and • Recognised as the • Increasing awareness of • Changing behaviours • Giving back by supporting protecting more spheres international markets customers technology improving New Zealand mark of te ao Māori and Te Tiriti o to reduce our volunteering of life productivity and competence Waitangi environmental footprint • Global contribution to • Helping regulators Telarc resilience • More New Zealand accreditation protect New Zealand • Acknowledged for the IANZ • Supporting accurate companies and value accreditation creates monitoring and • Create better Telarc organisations Telarc Telarc • Support to grow measurement understanding and accredited • Utilise standards to Telarc knowledge, expertise empathy for the various • Ensure standards and • Provide support to tailor reduce waste, minimise • Actively support industry and skills Telarc ethnic groups that make regulations are being and deliver accredited Telarc met for food and wine defects and reduce bodies to understand and • Actively promote New Zealand great standards to meet harm in the workplace Telarc • Support industry bodies exporters. critical pain points. embrace standards to the development of • Integrate a more balanced • Embrace technology lift performance for their • Ensure each of environmental literacy operating mind-set around and regulators to make • Ensure products and • Provide support and Telarc’s workers has a workers safer and methods of membership. as a core capability of the cultural diversity Telarc services are meeting deliver impartial audit development plan that is practice that can Telarc staff now operates in • Through certification required standards services against agreed • Actively support optimise scheduling and being actively supported help NZ business to standards. regulators and increase • Take an industry • Ensure our people better • Ensure work is being allow customers to self- and managed keep their people safe understanding of leadership role in the understand what a Crown completed in a manner • Deliver industry insights serve • Grow capability through and well certification and its area of sustainability Entity must do to live up to that meets the demands through data capture ongoing knowledge • Utilise technology benefits. with the aim of making its expectations • Keep Telarc’s workers of international partners and observations. sharing and training to streamline audit a difference safe and healthy by • Clearly communicate with protocols and processes opportunities actively managing risks existing and new clients to • Develop and adopt create understanding of • Actively manage well- a socially and to their well-being. what Telarc does and how being and safety whether environmentally it can add value. in the office, on client sites friendly materials and or when home working procurement policy 28 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 29 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 1: Enhancing safety Specific industry sectors using IANZ accreditation Accreditation service areas: A safer Consumer Products Toy safety Environment Asbestos (inspection/testing) New Zealand Performance / approval testing Radioactivity monitoring Energy efficiency Environmental soil quality Electrical safety (chemical/biological) and a safer world Pharmaceutical market surveillance (chemical/biological) Environmental water quality (chemical/biological) Air quality / emissions testing (chemical) Transport / Fuels Accreditation helps keep Kiwis safe, for example by overseeing Biosecurity testing Roading signage / barriers (testing) the laboratories that give us our medical test results. (animal health / border protection) Fuels / lubricants (testing) Certification provides confidence that individuals are acting Pest control compounds (testing) Roading materials (testing) consistently with an organisation’s or regulator’s policies, Biosecurity inspection Vehicle inspection (import) procedures, and guidelines, for example by checking them Health Vehicle inspection (domestic) against health and safety standards. Accreditation under PPE testing international agreements also means we can trust that imports Construction / Engineering (occupational safety & health) evaluated by accredited organisations meet the same standards Gas cylinders testing Air quality / asbestos of safety and quality that we expect here. Surface coatings (testing) (occupational safety & health) Ores / metals (testing) Workplace drug testing Building / civil materials (testing) Radiology services Methamphetamine contamination Output class 1: Accreditation services Medical diagnostic testing (testing/inspection) Pharmaceutical market surveillance Asbestos (inspection/testing) Intended outcome: Enhanced health and safety of (chemical/biological) Building / construction systems (testing) Pharmaceutical manufacturing New Zealanders through accreditation and assurance of competence. Building design (inspection) (chemical/biological) Cleanrooms / controlled environments Personal dosimetry testing (testing) Indicator Performance measure Target for 2021/22 Chemical safety (GLP) Engineering safety (NDT) Point of care testing The use of accreditation Number of specific industry Maintain at 6 sectors Engineering safety (inspection) Sterile Supplies services sectors using IANZ accreditation Fire protection (testing / inspection) Building consent authorities Food / Water / Agriculture Increase the number of Increase to 51 areas Wool certification accreditation service areas (total) Food testing (domestic) Food / wine / honey testing (domestic) Food safety inspection (domestic/export) Drinking water testing Drinking water treatment (inspection) Chemical safety (GLP) Soil fertility / fertlisers (testing, inspection) Animal health & nutrition (testing) Horticultural harvest Drinking water processing 30 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 31 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 1: Enhancing safety A safer Total number companies and organisations: accredited by IANZ New Zealand 1200 and a safer world (continued) 1000 Output class 1: Accreditation services Indicator Performance measure Target for 2021/22 800 Oversight of companies and Number of companies and Increase to 770 active organisations organisations active in IANZ companies and accreditation programmes organisations increased 600 Number of active Increase to 970 active accreditations increased accreditations 400 200 0 2016 2017 2018 2019 2020 2021 2022 2023 Active Accreditations Active Organisations 32 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 33 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 1: Enhancing safety Raising the bar Total number of quality, health and safety, and environmental certificates on the JAS-ANZ register in more spheres of life 1400 1300 Certification provides confidence that individuals are acting consistently with an organisation’s or regulator’s policies, procedures, and guidelines, for example by 1200 checking them against health and safety standards. 1100 Output class 2: Certification services 1000 Intended outcome: To provide confidence that what organisations and/or regulators have agreed or specified 900 through policies and procedures is actually happening. 800 Indicator Performance measure Target for 2021/22 700 The use of certification Number of quality, health and safety, Increase to 1360 services and environmental certificates on the certificates JAS-ANZ register 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 2021 2022 34 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 35 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 1: Enhancing safety Impact: Improved health outcomes for New Zealanders Safer roads Accredited speed measurement Tools allowing hospitals to better Safer serve their infrastructure patients A safer A healthier Better testing New Zealand New Zealand of roading foundations 1 2 3 Safer food Helping prevent and wine infrastructure Accurate failures diagnostic processes Safer drinking water Better quality People in NZ of life and living longer, health healthier lives 36 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 37 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 2: Enabling trade Helping New Zealand do business with the world Accreditation and certification facilitate international trade, which helps New Zealand earn export dollars and makes all of us better off. This is even more important now to support the economic recovery from the COVID-19 pandemic. The Accreditation Council also supports the Government when it negotiates free trade agreements that involve the use of accreditation. ILAC MRA Signatories ILAC Associate Members ILAC Affiliate Members Output class 3: International recognition services Map shows International Markets that accept goods accredited in NZ by IANZ Intended outcome: New Zealand business has easier access to international markets through reduced technical barriers to trade Indicator Performance measure Target for 2021/22 Indicator Performance measure Target for 2021/22 Accreditation International Laboratory Accreditation To maintain signatory status Designating authority Status as designating To maintain status that is globally Cooperation (ILAC) Mutual annually under Mutual Recognition authority recognised Recognition Agreement (MRA) Agreements for Conformity signatory status Assessment Bodies to enable international Assistance provided in Maintain 100% response Active representation on key All relevant and key product access response to requests from rate to requests* international committees: Asia Pacific committees and working Government ministries Accreditation Cooperation (APAC), groups have IANZ International Laboratory Accreditation representation annually * Assistance on request to Assistance provided in Maintain 100% response Cooperation (ILAC), Organisation Government in negotiating response to requests from rate to requests* for Economic Cooperation and conformity assessment Government ministries Development (OECD) chapters in free trade agreements (FTAs) and in meeting technical overseas market access requirements *Effective contributions are monitored and measured when we can show that we are *IANZ tracks Official Information Act requests on a register. active participants, e.g. through meeting attendance, committee participation, etc. Responses to other requests are tracked by a senior manager in an internal database. 38 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 39 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 2: Enabling trade Maintaining global links IANZ represents New Zealand in the following key international forums Forum Committees International Laboratory • Member of the Accreditation Committee Accreditation • Member of the Arrangement Committee Cooperation (ILAC) • Member of the Inspection Committee Asia Pacific Accreditation • Member of the APAC Mutual Recognition Arrangement Cooperation (APAC) – (MRA) Management Committee regional body of ILAC • Chair of the Inspection Body Working Group • Trainer for APAC Evaluators • Member of the Proficiency Testing Sub-Committee • Member of the Reference Material Producer working group Organisation for • Represent New Zealand at the OECD Working Group for Economic Cooperation Good Laboratory Practice and Development (OECD) • Participate in the Quality Sub-Group • Lead the Training Steering Committee for OECD Evaluators Output class 3: International recognition services Indicator Performance measure Target for 2021/22 Participate in international Number of evaluations 6 evaluations evaluations to support participated in ongoing mutual recognition arrangements between Number of evaluators 6 evaluators accreditation bodies 40 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 41 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 2: Enabling trade Benefits of IANZ Impact: Improved accreditation: economics for Less re-work; measurements are accurate Avoidance of product failure & recalls New Zealand Product claims are supported Increased market access Independent economic modelling demonstrates that accreditation helps local businesses which Impartial advice supports the economy and creates jobs while increasing exports by lifting their value. Risk management Demonstrate due diligence IANZ accreditation $43.5 Billion services facilitate Increasing exports of NZ’s GDP 405,200+ jobs in from industries that IANZ helps lift the NZ economy value-added exports IANZ supports $3.02 Billion Productivity & net impact profitability on total of NZ firms supported export values by reduced need for extra testing $41.3 Billion of NZ’s exports 107 Countries supported by IANZ accept IANZ- accreditation related reports Source: NZIER (2017) and certificates “IANZ: New Zealand’s premier accreditation body,” updated with figures from NZIER (2020) “IANZ: The Economic Side - Examining the Way IANZ supports the New Zealand economy” 42 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 3: Partnering with customers and regulators Output class 1: Accreditation services Providing value to Intended outcome: IANZ customers value accreditation services customers, and helping Indicator Performance measure Target for 2021/22 Accreditation services Score achieved in the bi-annual Overall TR*M score of 73 or regulators as they that meet with reasonable standards TR*M survey of customer satisfaction developed by higher (average) protect New Zealand of client satisfaction Kantar (May 2021) Accreditation services Undergo ISO/IEC 17011 Pass evaluation and that meet appropriate evaluation resolve findings within the Accreditation and certification gives the public confidence that they standards of quality timeframe set by APAC can trust a business and the quality of the goods and services it supplies. (currently one month) The Accreditation Council supports this trust when it partners with clients and regulators through training, excellent service, and the provision of support and advice. We are continuously striving to improve the services Accreditation services Assessments carried out as 98% of assessments of we offer and to listen to all our stakeholders. that meet appropriate scheduled accredited clients are standards of timeliness conducted within 3 months of the scheduled date Efficient clearance of 95% of assessments assessment findings by of accredited clients accredited clients completed within one month of agreed deadlines Output class 2: Certification services Intended outcome: To grow the awareness and adoption of certification. Indicator Performance measure Target for 2021/22 Certification services that Undergo ISO/IEC 17020, 17021, Retain approvals from meet appropriate quality 17065 assessments relevant accreditation standards partners annually Grow the number of Number of approved standards 3 new accreditations standards Telarc is Telarc is accredited for. annually accredited for 44 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 45 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 3: Partnering with customers and regulators Indicator Performance measure Target for 2021/22 Providing value to IANZ supporting regulators and Government agencies Support provided in response to requests 100% response rate* customers, and helping to ensure an effective conformance system Support provided to Make submissions on the through a whole-of- regulators as they government approach Taumata Arowai in the development of a best- Water Services Bill and subsequent regulations practice regulatory protect New Zealand compliance scheme Telarc supporting industry Regulator engagement To develop 1 regulator (continued) and regulators to develop initiative on new standards engagement initiative new standards annually Output class 4: Training and other services *IANZ will capture all requests centrally in a database. Intended outcome: Customers are assisted to maintain and improve their technical competence, and regulators are supported to maximise their effectiveness and achieve their objectives. Indicator Performance measure Target for 2021/22 Training services delivered Number of people trained 370 people by New Zealand Quality by NZQC College (NZQC) Number of new courses 2 courses introduced by NZQC Number of NZQC training 900 days days delivered 46 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 47 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 4: Improving productivity Strategy 5: Improving awareness and resilience of IANZ and Telarc Better practices and Recognised as technology improving the New Zealand performance and mark of competence resilience to shocks Growing awareness of certification and accreditation helps clients differentiate themselves by showing that they meet those standards, and helps regulators know where to find advice and support. The COVID-19 pandemic has demonstrated the importance of resilience and the increasing role of technology in New Zealand’s economic success. The Accreditation Council has accelerated its ability to deliver remote and virtual services, which helps provide insurance against future shocks. By ensuring our Output class 1: Accreditation services resilience, we help ensure the resilience of all those who depend on our services. Intended outcome: Increased awareness of the existence and purpose of accreditation by regulators and stakeholders. Output classes 1-4: Accreditation services, Certification services, International recognition services, Training and other services Indicator Performance measure Target for 2021/22 Intended outcome: The value and efficiency of accreditation and Help regulators know that IANZ Engagement To develop engagement initiative certification services is increased through new technology, practices can assist with advice and initiative expertise where accreditation to increase and information, and can be maintained through disruption. can help protect safety and awareness To implement engagement facilitate trade developed initiative* Indicator Performance measure Target for 2021/22 Innovation in assessment Proportion of IANZ assessments 8% annually techniques to ensure conducted remotely continuity of service Output class 2: Certification services Proportion of Telarc assessments 8% annually Intended outcome: To grow the awareness and the level of conducted remotely adoption of locally and internationally recognised standards. Proportion of NZQC courses 40% annually available virtually Indicator Performance measure Target for 2021/22 Grow the number of Telarc clients Number of Telarc clients 1700 clients annually *Implementation will be assessed by progress against KPIs set by a working group and published in a project plan. 48 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 49 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 6: Care for all our people Growing our people’s Intended outcome: IANZ services are sustained and improved through staff development and succession planning, and through formal development and recognition of external personnel like volunteers. knowledge, skills, and expertise Indicator Performance measure Target for 2021/22* To recruit, retain, and engage Develop People and An implemented People and and develop the capability of Culture strategy Culture strategy by 2022 Protecting New Zealand’s health and wealth through certification and our talented employee team accreditation is down to the committed and talented team that works for Professional An implemented professional the Accreditation Council. We are proud of our people and we will continue development strategy development strategy by 2022 to invest in them, and in succession planning, to ensure we can keep providing the protection and services that the public needs. Professional Implemented professional development plans development plans by 2022 for all permanent Intended outcome: Staff at IANZ and Telarc and Council members employees gain increased cultural capability through knowledge and Ensuring IANZ can continue to Succession plans Succession plans presented to awareness of te ao Māori and Te Tiriti o Waitangi. serve the public well into the the Council by management future by 2022. Indicator Performance measure Target for 2021/22 Ensuring IANZ retains Staff turnover To maintain turnover below Seminars and workshops with Internal seminars or Quarterly seminars or institutional knowledge and the national average† expert advisors to increase workshops held annually workshops held each expertise to serve stakeholders knowledge and understanding of year te ao Māori and Te Tiriti o Waitangi Ensuring IANZ develops and Development An implemented development recognises external personnel and recognition and recognition programme in such as Technical Experts programme place by 2022 and members of Professional Intended outcome: Supporting individuals’ ongoing development at Advisory Committees who help IANZ serve the public Telarc in a way that is responsive to their needs and circumstances. *Implemented means adopted as policy by the Council and reflected in an action plan. †Source: Lawson Williams annual New Zealand Staff Turnover survey. Indicator Performance measure Target for 2021/22 Individuals’ ability to Continuing to grow individuals’ approvals Delivery of audit support New Zealand (what they are qualified to audit against) volumes as business certification and sign-offs (competence to sign off scheduled annually requirements against industry codes) by Telarc 50 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 51 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Strategy 7: Care for all our planet Strategy 8: Care for our community Walking lightly Giving back to the on the earth community to help From temperatures to air quality to sea levels, accreditation and certification underpins the accurate monitoring and grow its potential measurement that are crucial for environmental sustainability. The Accreditation Council is also committed to playing its part We believe that better understanding the diverse views, in being a wise steward of the Earth’s resources. challenges, and opportunities of the communities we employ and serve is important in being able to work collaboratively in creating a sustainable, long-term business proposition that supports an increasingly diverse New Zealand. Intended outcome: Caring for our planet by reducing our environmental footprint. Intended outcome: Supporting our community Indicator Performance measure Target for 2021/22 through volunteering. Reduced commuter travel Proportion of days IANZ staff Maintain policy allowing Indicator Performance measure Target for 2021/22 through remote working work at home up to 20% (average) per annum IANZ support for Become a member of Membership taken out volunteering Volunteering New Zealand Proportion of days Telarc staff Maintain policy allowing work at home up to 20% (average) per annum Investigate opportunities 1 working day per annum for IANZ staff to volunteer to per staff member to support community activities volunteer to support Reduced paper use Reams of paper used annually 5% reduction compared for one working day per annum community activities through digitisation by IANZ to 2020/21 Reams of paper used annually 5% reduction compared by Telarc to 2020/21 Recycling programme for Recycling strategy An implemented strategy IANZ and Telarc by 2023 52 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 53 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Alignment with Government policy and SOI Enhanced Enabling Partnering Improving Improving Care for all Care for Care for our safety trade with productivity awareness & our people our planet community customers & and resilience understanding How our strategies relate to Government policies regulators Government goals Economic Plan: Balancing the four components of wellbeing – financial, human, natural, and social capital - to build a more productive, sustainable, and inclusive economy. Commerce and Consumer Affairs priorities: Playing an effective role within an integrated and coherent system working with a range of agencies and parties, and contributing to a resilient, adaptable, productive and inclusive economy Conformance 1. Organisational performance and governance System Strategy Focus Areas 2. Regulatory quality and practice 3. Partnerships for skills and value 4. International connections How our strategies relate to our Statement of Intent Strategic Focus Advancing accreditation and certification: IANZ and Telarc will both 2019 - 2023 continue to lead initiatives at the global level Increasing customer service: process efficiency, value added, promotion of accreditation and certification Contribution to the Government’s plan for a modern and fairer New Zealand: new programmes, access to overseas markets Contribution to the Government’s Conformance System Strategy: collaboration, efficiency, training Capacity development: human resource strategy, flexibility in audits and assessments, training, digital technology Government engagement: assisting regulators, sustainability initiatives Investment Plan: marketing initiatives, investment in technology, investment in new staff 54 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 55 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Consolidated Targets F2022 Consolidated Surplus of $1,029k (Before Tax & Investment) Provide evaluators to support evaluations of international accreditation bodies F2020 F2021 F2022 F2020 F2021 F2022 ACT FCST TARGET ACT FCST TARGET $000’s $000’s $000’s 6 6 6 (660) 644 1,029 Number of new standards Telarc is accredited for Number of active accreditations F2020 F2021 F2022 ACT FCST TARGET F2020 F2021 F2022 1 2 3 ACT FCST TARGET 824 950 970 Number of people trained by NZQC F2020 F2021 F2022 Number of accredited organisations ACT FCST TARGET F2020 F2021 F2022 315 446 370 ACT FCST TARGET 750 750 770 Delivery of new courses by NZQC F2020 F2021 F2022 Deliver 1,300 Telarc certified organisations on the JAS-ANZ register ACT FCST TARGET F2020 F2021 F2022 2 1 2 ACT FCST TARGET 1,279 1,200 1,360 Deliver 900 NZQC Training days F2020 F2021 F2022 Participation in international evaluations supporting Mutual Recognition Arrangements ACT FCST TARGET F2020 F2021 F2022 788 1,700 900 ACT FCST TARGET 1 7 6 56 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 57 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Financial Statements Financial Statements Statement of Forecast Comprehensive Statement of Forecast Changes Revenue and Expense in Equity 2020 2021 2022 2020 2021 2022 For the year ended 30 June Actual Forecast Budget For the year ended 30 June Actual Forecast Budget $ $ $ $ $ $ IANZ Accreditation Services Revenue 7,901,427 7,729,470 8,329,506 Balance at 1 July 9,993,281 9,389,934 9,794,822 Less Depreciation and amortisation expense 104,923 165,943 173,016 Total comprehensive revenue and expense for the year (603,348) 404,887 753,759 Other expenses 8,732,012 8,047,033 8,275,880 Less 25% Acquisition of Telarc Ltd Net Surplus / (Deficit) (935,508) (483,506) (119,390) Balance at 30 June 9,389,934 9,794,822 10,548,581 Training and Other Services Revenue 480,595 562,498 573,767 Less Expenses 589,687 663,502 705,284 Net Surplus / (Deficit) (109,092) (101,004) (131,518) International Recognition Services Revenue 578,441 601,645 605,338 Less Expenses 444,017 295,271 354,925 Net Surplus / (Deficit) 134,424 306,374 250,413 Total IANZ Revenue 8,960,463 8,893,613 9,508,611 Less Depreciation and amortisation expense 104,923 165,943 173,016 Other expenses 9,765,716 9,005,807 9,336,090 Net Surplus / (Deficit) (910,176) (278,137) (495) Telarc Limited Certification Services Revenue 7,934,270 9,163,871 9,542,945 Less Depreciation and amortisation expense 162,793 178,809 149,357 Finance cost - - - Taxation expense (56,153) 239,171 275,055 Other expenses 7,646,558 8,156,877 8,424,948 Net Surplus / (Deficit) 181,073 589,014 693,584 Consolidated Revenue 16,894,734 18,057,485 19,051,556 Less Depreciation and amortisation expense 267,716 344,751 322,373 Finance cost - - - Taxation expense (56,153) 239,171 275,055 Other expenses 17,412,274 17,162,684 17,761,038 Total Net Surplus / (Deficit) (729,103) 310,879 693,090 Other Income IANZ Interest 84,364 71,901 46,969 Telarc Interest 24,751 22,107 13,700 IANZ - Net gain on sale of property, plant and equipment 13,268 - - Telarc - Net gain on sale of property, plant and equipment/earn out 3,373 - - Total Other Income 125,755 94,008 60,669 Total Comprehensive Revenue and Expense for the Year (603,348) 404,887 753,759 Surplus attributable to:- Accreditation Council (603,348) 404,887 753,759 Accreditation Council (603,348) 404,887 753,759 58 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 59 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Financial Statements Financial Statements Statement of Forecast Financial Position Statement of Forecast Cashflows 2020 2021 2022 2020 2021 2022 As at 30 June Actual Forecast Budget For the year ended 30 June Actual Forecast Budget $ $ $ $ $ $ Equity Cash Flows From Operating Activities Equity attributable to owners of the parent Cash was provided from: Opening General Funds Revenues from services provided 17,917,517 17,310,089 18,986,222 IANZ Shareholders Interest received 116,362 97,483 60,169 Opening Balance 9,993,281 9,389,933 9,794,823 Dividend Received - 560 - Surplus / (Deficit) attributable to IANZ shareholders (603,348) 404,889 753,759 18,033,879 17,408,132 19,046,391 Total Equity 9,389,934 9,794,822 10,548,581 Cash was applied to: Represented by Payments to Suppliers 6,872,446 6,499,528 6,345,007 Current Assets Payments to Employees 10,791,267 10,676,920 11,259,834 Cash and cash equivalents 5,719,148 5,756,794 5,998,421 Payment of Income Tax 371,515 159,810 262,731 Investment - - - Interest Paid 3,142 - - Trade and other Receivables 2,498,866 3,313,376 3,376,141 Net Goods and Services Tax 27,496 45,277 30,872 Other assets: prepayments 272,225 277,723 277,723 18,065,866 17,381,536 17,898,443 Total Current Assets 8,490,239 9,347,893 9,652,284 Net Cash Flows From Operating Activities (31,987) 26,596 1,147,948 Non Current Assets Cash Flows From Investing Activities Investments - - - Cash was provided from: Property Plant and Equipment 302,669 190,986 602,313 Proceeds from sale of Property Plant & Equipment 25,925 - - Investment in subsidiary - - - Sale of Investment - - - Deferred Tax 85,794 85,794 85,794 25,925 - - Goodwill 3,322,606 3,322,606 3,322,606 Intangible Assets 417,274 225,705 398,325 Cash was applied to: Purchase of Property, Plant & Equipment 104,046 1,775 541,736 Total Non Current Assets 4,128,343 3,825,091 4,409,039 Purchase of Investment in subsidiary - - - Total Assets 12,618,582 13,172,984 14,061,323 Purchase of Intangible assets (computer software) 308,900 (12,825) 364,585 Term Deposit (350,000) - - LIABILITIES 62,946 (11,050) 906,321 Current Liabilities Trade and other payables 2,407,471 2,469,121 2,580,843 Net Cash Flows From Investing Activities (37,021) 11,050 (906,321) Dividend payable - - - Cash Flows from Financing Activities Provision for Taxation (102,749) (23,388) (11,064) Dividend to non-controlling interest - - - Provision for Employee Entitlements 923,926 932,429 942,962 Parent Dividend - - - Total Current Liabilities 3,228,648 3,378,162 3,512,743 Repayment of loan - - - Non Current Liabilities Net Cash Flows From Financing Activities - - - Borrowings - - - Net Increase (Decrease) in Cash Held (69,008) 37,646 241,627 Total non current Liabilities - - - Cash and cash equivalents at beginning of the year 5,788,156 5,719,148 5,756,794 Total Liabilities 3,228,648 3,378,162 3,512,743 Cash and cash equivalents at end of the year 5,719,148 5,756,794 5,998,421 Net Assets 9,389,934 9,794,822 10,548,581 60 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 61 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
Notes to Financial Statements Appendix 1 Statement of Significant Accounting Policies For the year ended 30 June Accreditation Council The Accreditation Council has prepared the forecast for 2021/22 on a conservative basis. The Accreditation Council (Council) is a public benefit entity (PBE) for financial reporting The full on-going impact of the Covid-19 crisis on the 2021/22 year is unknown. purposes. The Council trades under the name International Accreditation New Zealand (IANZ), and 100% owns its Crown entity subsidiaries, Telarc Limited (Telarc), which performs The Accreditation Council is forecasting to continue the investment in IT infrastructure its certification function and Telarc Holdings Limited, a non-trading entity that owns Telarc to improve the efficiency and effectiveness of their assessment and audit processes. The Limited’s older trademarks. Key accounting policies adopted by the Council include: Council is also planning a move to modern and more environmentally friendly premises in 1 Statement of compliance November 2022. Provision has been made for preliminary costs of the move. The financial statements of the Council have been prepared in accordance with the Crown Entities Act 2004, and in accordance with New Zealand International Financial Reporting Standards. The financial statements have been prepared in accordance with Tier 2 PBE accounting standards because expenses are greater than $2m and less than $30m and the Council is not publicly accountable. 2 Presentation currency and rounding The financial statements are presented in New Zealand dollars and all values are in dollars ($’s). 3 Basis of consolidation – purchase method The consolidated financial statements include the parent Council and its subsidiary. 4 Revenue The Council’s revenue is regarded as exchange transactions and derived through the provision of outputs to the Crown, services to third parties and income from its investments. Such revenue is recognised when earned and reported in the relevant financial period. 5 Borrowing costs Borrowing costs are recognised as an expense in the financial year to which the charge relate. 6 Goods and services tax All items in the financial statements are exclusive of GST, with the exception of receivables and payables, which are stated with GST included. Where GST is not recoverable as an input tax, it is recognised as part of the related asset or expense. 7 Taxation Income tax expense includes components relating to current tax and deferred tax. Current tax is the amount of income tax payable based on the taxable profit for the current year, and any adjustments to income tax payable in respect of prior years. Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses. Temporary differences are differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences or tax losses can be utilised. Deferred tax is not recognised if the temporary difference arises from the initial recognition of the goodwill or from the initial recognition of an asset or liability in a transaction that affects neither accounting profit nor taxable profit. Current tax and deferred tax are measured using tax rates (and tax laws) that have been enacted or substantively enacted at balance date. Current and deferred tax is recognised against the profit or loss for the period, except to the extent that it relates to items recognised in other comprehensive income or directly in equity 62 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 63 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
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