The Treasury is responsible for financial management and financial performance of public sector organisations. The State Services Commission is responsible for the administration of the State Sector Act and reviews performance of chief executives and departments. The emphasis is on formal measurement with full costing of outputs. Process measures may be a part of chief executives performance agreements. A distinctive feature of performance management is emphasis on outputs.
Financial measures are important in relation to commercial activities.
Accrual accounting is used to show the full costs of programmes and activities, including capital costs, and budgets are prepared on an accrual basis. Costs are allocated to outputs. Financial management been transformed to ensure better integration with performance management. Departments must make performance information available to the public but may choose the form that best meets the needs of customers and the public. Actual results concerning outputs and financial performance are reported in statement of service performance and annual reports.