The Annual Report describes achievement against the Department's strategic goals and key initiatives, outputs and performance measures as outlined in the 2005/06 Statement of Intent. This is the third Annual Report that reports against the Department's Strategic Business Plan 2003–2008.

The Annual Report is divided into four parts:

Part 1 sets out the strategic context within which the Department operates, including the purpose and principles guiding the Department's day-to-day operations. It also details the Department's strategic direction and outcomes, and their links to key government priorities and justice sector end outcomes. It also summarises the Department's overall approach to the management of offenders.

Part 2 details the Department's achievements against the major initiatives planned for 2005/06 and provides information on the Department's progress towards achieving its two outcomes of protecting the public and reducing re-offending.

Part 3 describes the factors affecting or contributing to the Department's achievements, including the environment and issues that impacted upon the Department's operations during 2005/06; the strategies to mitigate against identi?ed risks; and the Department's development of its capability, including its people and infrastructure.

Part 4 includes a summary of the Department's financial statements and performance against outputs as outlined in the 2005/06 Statement of Intent, in accordance with the Public Finance Act 1989. Included in these are detailed descriptions of the outputs that were delivered during 2005/06, the performance standards associated with these outputs, and statements setting out the Department's operating expenditure for the year ended, and financial position as at, 30 June 2006.