TAILIEUCHUNG - 2008 AUDIT OF THE DEFENCE BUDGET

Every child in New Zealand deserves to thrive physically, academically, socially, and culturally. Achieving their potential is important for them and for every New Zealander, because our future prosperity depends on an educated workforce. Therefore, it is important that the education system serves all students well. Improving the education of our Māori children is vital. By 2030, about 30% of our students, and therefore our future workforce, will be Māori. Some trends in educational achievement seem to be improving, and many Māori students do very well at school. However, overall, our English-medium schools do not support Māori students to achieve as highly. | 2008 Audit of the Defence Budget Department of Defence 3 April 2009 This report is solely for the use of McKinsey Company staff supporting the Department of Defence. No part of it may be circulated quoted or reproduced for distribution without prior written approval from McKinsey Company. 2008 Audit of the Defence Budget 3 April 2009 The Hon Joel Fitzgibbon MP Minister for Defence Dear Minister The attached report summarises the findings and recommendations of the Audit of the Defence Budget undertaken between May 2008 and February 2009. The objectives of the Audit were to a. Advise Ministers on the efficiency and effectiveness of and future risks associated with the Defence budget and b. Recommend to Ministers improved arrangements for managing the Defence budget The Terms of Reference for the Audit are contained in the Appendices. My appointment by you to lead the Audit took place in May 2008 and a supporting team of expert consultants from McKinsey Company was appointed in June of that year. The consultants and I were assisted by a secretariat from the Finance function. The Audit was undertaken in parallel with the preparation of the current Defence White Paper and associated companion reviews. It has been informed by and has also provided input to that work. It has also considered the work of the project led by Mr David Mortimer reviewing the effectiveness of the Defence Materiel Organisation DMO undertaken at the same time as this Audit. The recent Defence Management Review conducted by Elizabeth Proust among other reviews of Defence s performance provided valuable input to the Audit. The consulting team undertook both extensive and intensive analyses of Defence s finances operations and management processes. The team comprised 9 full-time consultants based in Australia supplemented by 11 part-time experts with relevant experience from McKinsey s overseas offices. Extensive use was made of the consulting firm s databases and prior experience in comparable .

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