The Crown Entity Resource Centre (CERC) has been set up within Te Kawa Mataaho Public Service Commission to work at the system level to support statutory Crown entity performance, appointments, governance and monitoring.
Ka tautoko te CERC i te pūnahaThe CERC supports the system
The establishment of CERC demonstrates the commitment of Te Kawa Mataaho to increase the level of support for the Crown entity system.
Statutory Crown entities make up a big part of government service delivery, responsible for around 35% of central government expenditure, 45% of central government assets and 75% of the central government workforce. Services provided by statutory Crown entities touch the lives of New Zealanders every day.
Ka arotahi te CERC ki ngā wāhanga matua e 4The CERC to focus on 4 core areas
Statutory Crown entities are governed by boards appointed by ministers (or by the Governor-General on advice from ministers). Appointing capable, diverse boards is a key way that ministers ensure that Crown entities are performing well. Government departments support ministers in making appointments by assisting in identification and assessment of potential candidates. The CERC provides advice on best-practice appointment processes. It is also looking at ways to ensure ministers have access to a strong and diverse pool of potential candidates across the system that reflects the rich make-up of the New Zealand population, now and in the future.
Supporting board governance, alignment and performance
To be effective, boards need to have a clear understanding of ministers’ expectations, legal requirements, and the sector and operating environment within which they work. The CERC is working to ensure that statutory Crown entity boards are clear about this context, and in particular the expectations that government has of boards in relation to issues such as workforce relations, integrity, ethics, standards of conduct, diversity, inclusion, and working with a spirit of service. The CERC is also working to support the induction and ongoing development of individual board members.
Crown entity monitoring
Statutory Crown entities are generally subject to monitoring by a government department. The role of the monitor is to engage with the statutory Crown entity, and provide the minister with advice on alignment, performance, organisational culture and capability, and the management of risks. A good relationship between the minister, monitoring department and Crown entity, based on trusted engagement, is critical for effective monitoring. The CERC is working with monitoring departments and Crown entities to identify and promote monitoring best practice.
The CERC engages widely with monitoring and appointing departments, and collectively with Crown entities. It also supports individual Crown entities to the extent that resources allow.
Guidance for ministers
Crown entity reporting and financial obligations
The Treasury provides guidance aimed at Crown entities for preparing the required accountability documents as detailed in part 4 of the Crown Entities Act 2004.
This guidance includes: