Sport New Zealand boss Peter Miskimmin says his organisation has made improvements since a negative report by the auditor-general.
Earlier this year the auditor-general demanded improvements to Sport NZ's "performance information and reporting", saying it was needed for better accountability.
The latest annual report shows Sport NZ's rating has progressed from "needs improvement" to "good".
Miskimmin welcomed the finding as "validation" of the organisation's work.
"I'm really, really pleased about that."
Sport NZ had just completed its Young People's survey, which looks at what 5-18-year-olds are doing, and was about to relaunch its Active New Zealand survey which surveys people 16 years and over.
"We have an impact report which looks at the marketability of national sporting organisations, so all of that information, along with all of the reporting we get from our national sporting bodies and regional sport trusts, will be brought into play."
Sport NZ's latest annual report also includes 15 new performance standard measures.
"I'm pleased, as it's validation of what I think is the great work that we've been doing," Miskimmin told the Sunday Star-Times.
National sports organisations were already using that new information.
Miskimmin said the auditor-general's previous criticism was not exclusive to Sport NZ.
"You need to understand we weren't uniquely on our own if you look at other organisations across Government," he said.
"I think there were many who had that same 'needs improvement'. What Government is looking for is the accountability for the investment made."
- Sunday Star Times
Which All Black deserved man of the match in the Wales test?