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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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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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
Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 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
Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 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
Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 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
Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 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
Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 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
Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 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
Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 30 JUNE 2022
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.
Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 30 JUNE 2022
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
Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 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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