Assessment criteria

How we assess your 6-month reports

On this page:

• Assessment changes
• Report status
• Assessment scale
• Quality of Programme Delivery indicators
• Financial Health indicators

Assessment changes

From 31 January 2025, Creative New Zealand will only assess 6-month reports for two* aspects:

• Quality of Programme Delivery
• Financial Health

_{*Organisations that are part of TEOs, CCOs, or receive less than $75,ooo per annum from us are exempt from Financial Health reporting}

Report status

The report status visible in the CNZ portal is based on Creative New Zealand's assessment of Quality of Programme Delivery. 

Scores for Quality of Programme Delivery and Financial Health will be used individually for Creative New Zealand’s corporate reporting. 

Assessment scale

• Achieved - All indicators are achieved
• Minor concerns - There are minor concerns about some indicators
• Major concerns - There are major concerns about some indicators

Quality of Programme Delivery indicators

Quality is assessed against the following indicators:

1. The organisation has delivered the programme of activity as agreed
   • Achieved - The organisation has delivered all aspects of the programme as agreed or if not, it was due to circumstances outside of the organisation’s control
   • Minor concerns - The organisation has delivered most aspects of the programme and has still achieved contracted Investment Feature Outcomes.
   • Major concerns - The programme delivered by the organisation is significantly different to what was agreed and/or the organisation has not achieved its contracted Investment Feature Outcomes.
2. The organisation’s activity statistics met or exceeded projections
   • Achieved - The organisation has met or exceeded all programme projections, or if not, fair rationale is provided.
   • Minor concerns - The organisation has met most programme projections, but we have concerns about the accuracy of some programme projections, how the programme was delivered, or how the content was received
   • Major concerns - The organisation has not met most programme projections
3. The organisation has achieved its contracted Investment Feature Outcomes
   • Achieved - The organisation has clearly achieved all contracted Investment Feature Outcomes
   • Minor concerns - The organisation has achieved most contracted Investment Feature Outcomes but not all, or delivery could be improved
   • Major concerns - The organisation has not achieved contracted Investment Feature Outcomes
4. The organisation has defined what quality means for them and has set goals or targets
   • Achieved - The organisation has clearly defined and meaningful quality measures, goals and targets
   • Minor concerns - The organisation demonstrates what quality means for them, but hasn’t set defined goals, targets and/or hasn’t formalised the measures and/or the measures are not meaningful
   • Major concerns - The organisation does not demonstrate an understanding of what quality means for them
5. The organisation has evaluation methods in place to assess the quality or impact of their work.
   • Achieved - The organisation demonstrates a consistent practice of evaluation, reflection and learning
   • Minor concerns - The organisation has a practice of evaluation. It is not obvious how the organisation integrates learnings from evaluation.
   • Major concerns - The organisation does not demonstrate a practice of evaluation or reflection.
6. Evaluation results met or exceeded the organisation’s goals or targets
   • Achieved - Evaluation results met or exceeded the organisation’s targets, or where they don’t, there is evidence that the organisation has used the feedback to improve.
   • Minor concerns - Evaluation results fell consistently short of targets
   • Major concerns - No evaluation results have been provided

Financial Health indicators

TEOs and their subsidiaries, council-controlled organisations, and organisations receiving less than $75,000 per annum are exempt from this requirement.

Financial health is assessed against the following indicators:

1. Financial performance results are positive
   • Achieved - The organisation reports a surplus that is equal or greater than projected OR the organisation reports a deficit that is equal or smaller than projected
   • Minor concerns - The organisation reports a surplus that is smaller OR a deficit that is <10% greater than projected
   • Major concerns - The organisation reports a deficit when a surplus was projected OR a deficit that is >10% greater than projected
2. Financial performance trends are stable or improving
   • Achieved - The organisation’s financial performance over 3 previous comparable periods is stable (+/- 10%) or improving
   • Minor concerns - The organisation’s financial performance over 3 previous comparable periods is variable (more than +/-10%), but most recent results are an uptick
   • Major concerns - The organisation’s financial performance over 3 previous comparable periods is consistently in deficit and/or declining
3. The organisation has enough resources to meet any short-term obligations (this measure uses the quick ratio which divides the total of cash and cash equivalent resources by the total of current liabilities)
   • Achieved - The organisation reports a quick ratio of >=1.2
   • Minor concerns - The organisation reports a quick ratio of 1 - 1.1
   • Major concerns - The organisation reports a quick ratio of <1
4. The organisation has enough resources to continue operating, should major revenue sources dry up
   • Achieved - The organisation reports a net equity balance equal to >6 months of projected total costs
   • Minor concerns - The organisation reports a net equity balance equal to 3-6 months of projected total costs
   • Major concerns - The organisation reports a net equity balance equal to >3 months of projected total costs
5. The organisation purposefully holds ‘rainy day’ reserves
   • Achieved - The organisation reports a reserves balance in line with their reserves policy
   • Minor concerns - The organisation reports a reserves balance but doesn’t have a defined reserves policy OR the organisation reports a reserves balance that is consistently lower than their reserves policy requires
   • Major concerns - The organisation does not report a reserves balance
6. The organisation is likely to continue operating for the foreseeable future
   • Achieved - The organisation has achieved expectations for indicators 1-5 and future revenue is relatively secure. It is unlikely the organisation will experience serious financial strain in the coming year
   • Minor concerns - There are minor concerns about indicators 1-5 and future revenue is moderately uncertain. There is a moderate chance the organisation may experience serious financial strain in the coming year
   • Major concerns - There are minor or major concerns about indicators 1-5 and future revenue is high risk. There is a strong possibility the organisation may experience serious financial strain or risk closure in the coming year
7. The organisation is acting in a financially responsible manner
   • Achieved - The organisation’s latest set of audited accounts includes an ‘unmodified audit opinion’ about financial statements and service performance information
   • Minor concerns - The organisation’s latest set of audited accounts includes an ‘emphasis of matter’ (especially relating to ‘going concern’), ‘disclaimer of opinion’, ‘qualified opinion’, but the issues raised by the auditor are manageable or are likely to be redressed in future audits (e.g if due to changes in technology or risk of future funding is relative).
   • Major concerns - The organisation’s latest set of audited accounts include an ‘emphasis of matter’, ‘disclaimer of opinion’, ‘qualified opinion’, or an ‘adverse opinion’, and issues raised by the auditor create significant risk for CNZ’s investment (e.g. they suggest financial mismanagement or a risk to the organisation’s going concern)