Retail Deposit Guarantee audit welcomed

Provost signalled in her 2010/11 annual plan that she intended to carry out a performance audit to examine aspects of how the scheme was implemented and managed by The Treasury because of its economic and financial significance.

The audit will include an assessment of how effectively and efficiently Treasury has:

• Identified and monitored the risks to the Crown posed by financial institutions covered by the scheme - including The Treasury's monitoring of South Canterbury Finance.
• Identified and monitored how well the scheme has met its objectives.
• Attempted to improve the scheme based on findings of its monitoring.
• Explained the purposes and functions of the scheme to Parliament and the public.
• The audit will identify improvements to the scheme or future similar schemes.

It is expected that the audit's findings will be reported to Parliament by 30 June next year.