Governance of the Business Transformation programme

Governance of the Business Transformation programme

The Auditor-General’s report, Inland Revenue Department: Governance of the Business Transformation programme, was presented to the House of Representatives today. The report can be viewed on our website: http://www.oag.govt.nz/2015/ird-business-transformation

In 2011, Inland Revenue began a significant Business Transformation programme to build a “modern revenue system”. Inland Revenue hopes that a modern revenue system will make it easier for taxpayers to pay their tax.

The programme has been operating for about four years and has an anticipated further 8-10 years to go. It involves significant public spending, with $83 million spent as at the end of November 2014. The programme is important to all New Zealanders because the government relies on tax collection to fund key services and infrastructure such as education, health and law and order, that we all rely on. We looked at how Inland Revenue is governing the programme to deliver a modern revenue system.

We found that Inland Revenue’s governance of the programme has provided clear direction, and supported clear and effective decisions. Strengths of Inland Revenue’s governance of the programme include a comprehensive and clear governance structure, an established methodology, and an advanced approach to managing risks.

However, Inland Revenue needs to watch and carefully manage specific risks to effective governance. This includes making sure that the governance arrangements are adapted to be fit for purpose at any point in the programme’s life. Inland Revenue also needs to continue to ensure that:

• independent quality assurance reviews of the programme coincide with times of high risk to the programme;

• longer-term people capability, capacity, and succession management is in place;

• specialist skills are transferred appropriately between governance personnel within the programme; and

• the programme provides the necessary certainty and clarity about when benefits will be realised.

ends

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