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Financial Statements of the Government of New Zealand for the Year Ended 30 June 2006

Financial Statements (continued)

Reconciliation of Net Cash Flows From Operations to Operating Balance (for the year ended 30 June 2006)
Forecast Actual
Original Budget $m Estimated Actual $m 30 June 2006 $m 30 June 2005 $m
Reconciliation Between the Net Cash Flows from Operations and the Operating Balance
8,943 10,632 Net Cash Flows from Operations 12,112 12,189
Items included in the operating balance but not in net cash flows from operations
Valuation Changes
24 (409) (Increase)/decrease in pension liabilities (279) (1,410)
(597) (1,187) (Increase)/decrease in ACC liabilities (1,321) (2,037)
- - (Increase)/decrease NPF guarantee (54) (53)
- - Increase/(decrease) in commercial forests 15 (23)
- 42 Unrealised net foreign-exchange gains/(losses) 502 4
500 1,352 Other valuation changes 1,242 1,020
(73) (202) Total Valuation Changes 105 (2,499)
Property, Plant and Equipment Asset Movements
(2,744) (2,715) Depreciation (2,708) (2,528)
- 630 Gains/(losses) on sale of physical assets 811 (2)
(2,744) (2,085) Total Property, Plant and Equipment Movements (1,897) (2,530)
Other Non-Cash Items
(45) (1,740) Student loans (1,671) (188)
(94) (89) Amortisation of goodwill (75) (97)
606 1,256 Other 945 133
467 (573) Total Other Non-Cash Items (801) (152)
Movements in Working Capital
(82) 50 Increase/(decrease) in taxes receivable 3,225 (202)
149 (500) Increase/(decrease) in other receivables 366 498
82 76 (Decrease)/increase in inventories (39) 58
(77) 1,088 (Increase)/decrease in payables (1,598) (1,115)
72 714 Total Movements in Working Capital 1,954 (761)
6,665 8,486 Operating Balance 11,473 6,247

The accompanying notes and accounting policies are an integral part of these statements.

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