Protecting the health and wealth of New Zealand - Accreditation Council Statement of Performance Expectations FOR THE YEAR ENDED 30 JUNE 2022
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G.31
Accreditation Council
Statement of Performance Expectations
FOR THE YEAR ENDED 30 JUNE 2022
Protecting the
health and wealth
of New Zealand
1 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022Partnering 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 2022Support 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 2022Contents 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 2022Chair 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 2022Board Statement This SPE reflects proposed performance targets and forecast financial statements for the period 1 July 2021 to 30 June 2022. It is produced in accordance with the requirements of section 149E of the Crown Entities Act 2004. The forecast financial statements and underlying assumptions in this document have been authorised as appropriate for issue by the Accreditation Council in accordance with its role under the Crown Entities Act 2004. The Accreditation Council proposes to supply four classes of outputs in the coming financial year: 1. Accreditation services 2. Certification services 3. International recognition services 4. Training and other services Because the Council is self-funded, those output classes are not “reportable” under the Crown Entities Act. However, the Council has chosen as a matter of good governance practice to state the intended outcomes and performance measures for each output class. These statements are arranged under each of the Council’s strategies (where relevant). The Council has also chosen to state the expected revenue and expenses for each output class in the Statement of Forecast Revenue and Expense. Telarc’s wholly owned subsidiary, Telarc Holdings Limited, a non-trading entity that owns Telarc’s older trademarks, produces no outputs. Paul Connell Marion Eades Chair Chair Audit and Risk Committee 10 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 11 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022
The conformity
assessment framework
Government International
New Zealand
Establishes regulatory standards Mutual Recognition
Government
and carries out enforcement on Arrangements
& Regulatory
non-compliance. Recognises APAC/ ILAC/
Authorities
Accreditation Bodies IAF/OECD
Accreditation bodies
Attest to the competence of JAS-ANZ
Conformity Assessment bodies to International Joint Accreditation
carry out conformity assessment Accreditation System of Australia
activities against regulatory and New Zealand and New Zealand
other standards.
Conformity Assessment Bodies Certification
Assess conformance of products, Bodies
Inspection
processes and services against Laboratories product, personnel
Bodies
regulatory and other standards & management
or specifications. systems
Product or Person certified Management Users and consumers of
Product tested Product marked
process inspected as meeting system audited products, processes or
& certified as to show it meets
& certified as specific standards & certified services have assurance
meeting standards standards or
meeting standards of qualification & as meeting that standards or
or specifications specifications
or specifications experience standards specifications are metIANZ’s role
Serving all
New Zealanders:
An The people and government
of New Zealand want an
independent accreditation body they
can rely on to help keep
Crown entity
them safe.
IANZ aims to be rigorous,
fair and independent.
We assess a client’s people,
equipment, processes and
accredit the competence
of the organisation.
Government departments
Serving New Zealand regulators:
Regulators want to protect people
and at the same time enable
business and achieve systemic
and positive change.
This can be very hard.
IANZ aims to be the regulator’s
proactive partner in achieving
oversight and regulation
of an industry.
Ov
er
sig
ht
&
re
la
gu
tio
n Industries
of
an Serving New Zealand industry:
in
du
st Businesses want to deliver high
ry
quality practical service and
continuously improve.
But they are often time poor and
sometimes resource constrained.
IANZ aims to be a customer’s
solution-focussed partner.How IANZ works
IANZ’s role in
IANZ accredits laboratories that test products and items for safety
and conformance, including organisations that provide critical
diagnostic testing and medical imaging services. Inspection bodies
the value chain People
are also accredited for domestic food safety inspection, engineering
safety (e.g. cranes, pressure equipment), and fire sprinkler inspection.
All Building Consent Authorities (BCAs) are also accredited by IANZ.
For example, IANZ accredits testing laboratories that test meat for
Example:
export as part of the Ministry of Primary Industries process to meet Processing New Zealand
Processes
meat for export
Testing Laboratory
Overseas Market Access Requirements.
IANZ Accredited
We assess
a client’s: Testing and
Equipment
People
Results
Equipment Sampling Testing Results
IANZ Client benefits
There are commercial benefits to IANZ accreditation for clients: recognition, assurance and
direction. And working with IANZ recognises and enhances a client’s own expertise.
Processes
Recognition Assurance Direction
Commercially valuable Knowing you are doing Simple, actionable advice and
recognition of quality the right thing direction on what to change
16 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022 17 Accreditation Council Statement of Performance Expectations 1 July 2021—30 June 2022Livestock 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 2022Other 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 2022Our 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 2021Our 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Strategy 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 2022Alignment 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 2022Consolidated 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 2022Financial 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 2022Financial 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 2022Notes 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
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