title: Intellectual Capital Reporting by the New Zealand Local Government Sector

authors: Schneider, Annika Barbara Sabine

subjects: intellectual capital

abstract: Sweeping financial management reforms occurred in New Zealand during the late 1980s and early 1990s which radically changed the face of the New Zealand public sector.  These reforms sought to significantly restructure and reorganise local government thereby improving their effectiveness and efficiency and improving their accountability to their stakeholders. The principal vehicle for the discharge of this accountability is the annual report, which must be prepared according to Generally Accepted Accounting Practice (GAAP) and commercial principles.

Organisations in the private sector are beginning to recognise the value of accounting for intellectual capital (IC) (see for example Quinn, 1992; Brooking, 1996; Sveiby, 1997; Edvinsson  Malone, 1997; Bontis, Dragonetti, Jacobsen  Roos, 1999; Guthrie, Petty  Johanson, 2001; Bounfour, 2003). Studies on the measurement, management and reporting of IC have been undertaken internationally in Asia (Abeysekera  Guthrie, 2005; Goh  Lim, 2004; Ordenez de Pablos, 2002), Australia (Guthrie  Petty, 2000), Europe (Bozzolan, Favotto and Ricceri, 2003; Olsson, 2001; Ordenez de Pablos, 2004), United Kingdom (Collier, 2001; Williams, 2001) and Ireland (Brennan, 2001).
 
Despite the significant research interest in the field of intellectual capital internationally, scant attention has been paid to intellectual capital reporting by commercial organisations in New Zealand. An extensive review of the IC literature yielded only two New Zealand based studies (Miller  Whiting, 2005; Wong  Gardner, 2005). Further, no studies to date have addressed intellectual capital reporting by local governments in either New Zealand or internationally. This study aims to fill this gap through the development of an intellectual capital disclosure model that could be applied to local authorities.

The research describes and explains the development of a disclosure index used to measure the extent and quality of current intellectual capital disclosure by local authorities in New Zealand. The index was developed through a consultative process with a panel of local government stakeholders which was used to establish the weightings for each item. The final index comprised 26 items divided into three categories: internal capital, external capital and human capital. The 2004/2005 annual reports of 82 New Zealand local authorities were scored for extent and quality of disclosure against the index. 

The results indicate that intellectual capital reporting by local authorities is varied. Manukau City Council scored the achieved the highest overall score (76%) out of the 82 reports analysed while Whakatane District Council scored the lowest with 33%. The most reported items were joint ventures/business collaborations and management processes. The least reported items were intellectual property and licensing agreements. The most reported category of intellectual capital was internal capital, followed by external capital. The least reported category was human capital. The findings indicate a number of areas of reporting that could be improved in order to meet with stakeholder disclosure expectations. In the internal capital category, intellectual property disclosures could be improved. In the external capital category disclosure concerning ratepayer demographics and licensing agreements could be improved. In the human capital category, disclosure of most items could be improved, in particular, entrepreneurial innovativeness and vocational qualifications.

The study provided an insight into the current level and quality of intellectual capital disclosure by the NZ local government sector. The results indicated that local authorities are disclosing some aspects of intellectual capital in their annual report, however there is no consistent reporting framework, and many areas of IC disclosures are not meeting stakeholder expectations. More research is needed in the area of intellectual capital reporting in the public sector. This study provides a preliminary framework which can be used by local authorities to enhance intellectual capital disclosures in their annual reports.

text: Intellectual Capital Reporting by the New Zealand Local Government Sector Sweeping financial management reforms occurred in New Zealand during the late 1980s and early 1990s which radically changed the face of the New Zealand public sector.  These reforms sought to significantly restructure and reorganise local government thereby improving their effectiveness and efficiency and improving their accountability to their stakeholders. The principal vehicle for the discharge of this accountability is the annual report, which must be prepared according to Generally Accepted Accounting Practice (GAAP) and commercial principles.

Organisations in the private sector are beginning to recognise the value of accounting for intellectual capital (IC) (see for example Quinn, 1992; Brooking, 1996; Sveiby, 1997; Edvinsson  Malone, 1997; Bontis, Dragonetti, Jacobsen  Roos, 1999; Guthrie, Petty  Johanson, 2001; Bounfour, 2003). Studies on the measurement, management and reporting of IC have been undertaken internationally in Asia (Abeysekera  Guthrie, 2005; Goh  Lim, 2004; Ordenez de Pablos, 2002), Australia (Guthrie  Petty, 2000), Europe (Bozzolan, Favotto and Ricceri, 2003; Olsson, 2001; Ordenez de Pablos, 2004), United Kingdom (Collier, 2001; Williams, 2001) and Ireland (Brennan, 2001).
 
Despite the significant research interest in the field of intellectual capital internationally, scant attention has been paid to intellectual capital reporting by commercial organisations in New Zealand. An extensive review of the IC literature yielded only two New Zealand based studies (Miller  Whiting, 2005; Wong  Gardner, 2005). Further, no studies to date have addressed intellectual capital reporting by local governments in either New Zealand or internationally. This study aims to fill this gap through the development of an intellectual capital disclosure model that could be applied to local authorities.

The research describes and explains the development of a disclosure index used to measure the extent and quality of current intellectual capital disclosure by local authorities in New Zealand. The index was developed through a consultative process with a panel of local government stakeholders which was used to establish the weightings for each item. The final index comprised 26 items divided into three categories: internal capital, external capital and human capital. The 2004/2005 annual reports of 82 New Zealand local authorities were scored for extent and quality of disclosure against the index. 

The results indicate that intellectual capital reporting by local authorities is varied. Manukau City Council scored the achieved the highest overall score (76%) out of the 82 reports analysed while Whakatane District Council scored the lowest with 33%. The most reported items were joint ventures/business collaborations and management processes. The least reported items were intellectual property and licensing agreements. The most reported category of intellectual capital was internal capital, followed by external capital. The least reported category was human capital. The findings indicate a number of areas of reporting that could be improved in order to meet with stakeholder disclosure expectations. In the internal capital category, intellectual property disclosures could be improved. In the external capital category disclosure concerning ratepayer demographics and licensing agreements could be improved. In the human capital category, disclosure of most items could be improved, in particular, entrepreneurial innovativeness and vocational qualifications.

The study provided an insight into the current level and quality of intellectual capital disclosure by the NZ local government sector. The results indicated that local authorities are disclosing some aspects of intellectual capital in their annual report, however there is no consistent reporting framework, and many areas of IC disclosures are not meeting stakeholder expectations. More research is needed in the area of intellectual capital reporting in the public sector. This study provides a preliminary framework which can be used by local authorities to enhance intellectual capital disclosures in their annual reports.

year: 2006

title: Why standardised assessment doesn’t measure up?

authors: Estellés, Marta

abstract: Panel discussion with Dr Marta Estellés, Dr Jade Wrathall, and Lynda Stuart about the moves the Government is making to bring in standardised testing in schools.

The Ministry of Education has issued a tender to purchase a standardised assessment tool for children between Year 3 and 10. We discuss why this policy introduced by stealth is so concerning. Drawing on national and international evidence, we will reflect on the implications of standardised assessment. You will learn why this new policy doesn’t measure up and it is no more than a reboot of National Standards.

text: Why standardised assessment doesn’t measure up? Panel discussion with Dr Marta Estellés, Dr Jade Wrathall, and Lynda Stuart about the moves the Government is making to bring in standardised testing in schools.

The Ministry of Education has issued a tender to purchase a standardised assessment tool for children between Year 3 and 10. We discuss why this policy introduced by stealth is so concerning. Drawing on national and international evidence, we will reflect on the implications of standardised assessment. You will learn why this new policy doesn’t measure up and it is no more than a reboot of National Standards.

year: 2025-05-14

title: Reimagining community resilience through a Te Ao Maori worldview

authors: Boston, Megan

abstract: Efforts to improve community resilience have seen universal efforts to grow capabilities in disaster management for the built environment. Although comprehensive frameworks exist, the perspective used to derive these frameworks fails to address marginalised communities' vulnerabilities, including Indigenous Māori people. Colonization and socio-economic deprivation on Māori mean community response frameworks fail to reflect their values and specific needs when preparing and responding to natural disasters. The nature of Māori culture and values presents an opportunity to reimagine the scope of community resilience for an inclusive framework. The Māori history has resilient practices weaved into the very fabric of their culture, which knowledge has survived through the oral transmission of waiata, whakataukī, whakairo, and pūrakau. The practice of community resilience amongst ancient Māori was not consigned to singular events but instead is a holistic perspective to the manner of living. Sourcing and qualifying this information from people aligned and immersed in nature is the knowledge required to improve the frameworks to respond to natural disasters while expanding the literature on community resilience. A comprehensive analysis of traditional Māori resilience is conducted by evaluating a variety of Mātauranga Māori that relate to the resilient nature of Māori. This information is compared to modern Māori perceptions of community resilience using a derived earthquake scenario for the local Iwi Ngati Toa, located in the city of Porirua within the Wellington region. This information will enable a comprehensive definition of community resilience and improve disaster response frameworks to be more inclusive, safe, sustainable, and resilient.

text: Reimagining community resilience through a Te Ao Maori worldview Efforts to improve community resilience have seen universal efforts to grow capabilities in disaster management for the built environment. Although comprehensive frameworks exist, the perspective used to derive these frameworks fails to address marginalised communities' vulnerabilities, including Indigenous Māori people. Colonization and socio-economic deprivation on Māori mean community response frameworks fail to reflect their values and specific needs when preparing and responding to natural disasters. The nature of Māori culture and values presents an opportunity to reimagine the scope of community resilience for an inclusive framework. The Māori history has resilient practices weaved into the very fabric of their culture, which knowledge has survived through the oral transmission of waiata, whakataukī, whakairo, and pūrakau. The practice of community resilience amongst ancient Māori was not consigned to singular events but instead is a holistic perspective to the manner of living. Sourcing and qualifying this information from people aligned and immersed in nature is the knowledge required to improve the frameworks to respond to natural disasters while expanding the literature on community resilience. A comprehensive analysis of traditional Māori resilience is conducted by evaluating a variety of Mātauranga Māori that relate to the resilient nature of Māori. This information is compared to modern Māori perceptions of community resilience using a derived earthquake scenario for the local Iwi Ngati Toa, located in the city of Porirua within the Wellington region. This information will enable a comprehensive definition of community resilience and improve disaster response frameworks to be more inclusive, safe, sustainable, and resilient.

year: 2023