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Supplementary Statements

Statement of Unappropriated Expenditure
for the year ended 30 June 2014

An appropriation is a statutory authorisation by Parliament for the incurring of expenses or capital expenditure. This statement reports all expenses and capital expenditure that were incurred without, in excess, or outside the scope, of existing appropriations. This statement also reports breaches of projected net asset balance limits set by section 22(3) of the Public Finance Act 1989 (“the Act”).

The table below details the different categories of unappropriated expenditure for the year ended 30 June 2014.

Category of unappropriated expenditure Reporting requirements to Parliament under the Act
(A)  Approved by the Minister of Finance under Section 26B of the Public Finance Act 1989 Where the amount in excess (but within the scope) of an existing appropriation was within $10,000 or 2% of the appropriation, Section 26B of the Act authorises the Minister of Finance to approve these items.  Such items must also be confirmed by Parliament in the Appropriation Act for the year.
(B)  In excess of appropriation but with authority of an Imprest Supply Act

Where the unappropriated items exceed the limits available for approval under Section 26B, they fall into one of five categories of unappropriated expenditure. 

All such instances are unlawful unless validated by Parliament through an Appropriation Act (Section 26C of the Act).

The validating legislation will be accompanied by a report to the House of Representatives that sets out each unappropriated item together with an explanation made by the Minister responsible for the appropriation. 

(C)   Without appropriation but with authority of an Imprest Supply Act
(D)  In excess of appropriation and without authority of an Imprest Supply Act
(E)   Outside scope of an appropriation and without authority of an Imprest Supply Act
(F)   Without appropriation and without authority of an Imprest Supply Act
Department
Vote
Expense type
Appropriation name
Authority at time of breach
$000
Amount without or exceeding appropriation
$000

(A)  Expenses and capital expenditure incurred in excess of existing appropriation and approved by the Minister of Finance under Section 26B of the Public Finance Act 1989

     

Ministry of Education

Education

Non-Departmental Output Expense

School Transport

 

176,383

 

297

 

Non-Departmental Other Expense

Early Childhood Education

 

1,515,337

 

21,482

(B) Expenses and capital expenditure incurred in excess of appropriation but with authority of an Imprest Supply Act

None this year

Department
Vote
Nature of expense or capital expenditure Amount without appropriation
$000

(C)  Expenses and capital expenditure incurred without appropriation but with authority of an Imprest Supply Act

   

Canterbury Earthquake Recovery Authority

Canterbury Earthquake Recovery

 

Reimbursement of interest costs incurred by the Christchurch City Council for interest costs

 

9,095

 

Department
Vote
Expense type
Appropriation name
Authority at time of breach
$000
Amount without or exceeding appropriation
$000

(D)  Expenses and capital expenditure incurred in excess of appropriation and without authority of an Imprest Supply Act

     

Department of Internal Affairs

Internal Affairs

 

 

Non-Departmental Other Expenses

Digital Literacy and Connection

 

 

 

2,123

 

 

 

1,600

Ministry for Culture and Heritage

Arts, Culture and Heritage

 

 

Non-Department Output Expense

Protection of Taonga Tuturu

 

 

 

279

 

 

 

126

Ministry of Business, Innovation and Employment

Labour

 

Departmental Output Expense

Health and Safety Services

 

 

 

38,568

 

 

 

2,982

Economic Development

Non-Departmental Capital Expenditure

Venture Investment Fund

 

10,519

 

4,481

Ministry of Pacific Island Affairs

Pacific Island Affairs

 

Departmental Output Expense

Policy Advice and Ministerial Servicing MCOA

 

6,452

 

175

Ministry for Primary Industries

Food Safety

 

Departmental Output Expense

Standards
Assurance

 

 

18,309
56,148

 

 

123
1,384

The Treasury

Finance

 

Non-Departmental Other Expense

Impairment of Loans to Taitokerau Forest Limited

 

 

200

 

 

61

Statement of Unappropriated Expenditure for the year ended 30 June 2014 (continued)

Department
Vote
Expense type
Appropriation name
Amount without or exceeding appropriation
$000

(E) Expenses and capital expenditure outside of scope of an existing appropriation and without authority of an Imprest Supply Act

   

Crown Law

Attorney General

 

Departmental Output Expense

Supervision and Conduct of Crown Prosecutions and Appeals MCOA

   1 July 2012 - 30 June 2013

  1 July 2013 - 30 June 2014

 

 

 

 

225

747

Ministry of Business, Innovation and Employment

Employment

Departmental Output Expense

Policy Advice and Related Outputs MCOA

   1 July 2012 - 30 June 2013

   1 July 2013 - 30 June 2014

 

 

230

656

Ministry of Māori Development

Māori Affairs

 

Non-Departmental Other Expense

Orakei Act 1991

   1 July 2012 - 30 June 2013

   1 July 2013 - 30 June 2014

 

 

 

 

7

7

Department
Vote
Nature of expense or capital expenditure Amount without or exceeding appropriation
$000

(F) Expenses and capital expenditure incurred without appropriation and without authority of an Imprest Supply Act

   

Canterbury Earthquake Recovery Authority

Canterbury Earthquake Recovery

 

 

  Movement in provision for anchor project land and concessionary leases 35,454
  Loss on valuation of land 62,463
  Transaction and demolition costs of anchor project land 24,956
  Movement in demolition debtor provision 4,003
  Christchurch bus interchange 3,093
  Loss on valuation of land held for sale 606

Inland Revenue Department

Revenue

 

Paid Parental Leave Payments

 

67,689

Ministry of Business, Innovation and Employment

Commerce

 

Write down of debts owed to the Crown

 

1,994

Net Assets

Section 22 of the Public Finance Act 1989 requires that the net asset holding of a department must not exceed the most recent projected balance of net assets for that department as set out in an Appropriation Act, except where Ministers agree a surplus may be retained or where assets or liabilities have been remeasured. The following schedule discloses those departments that have breached this requirement during the year.

Department Net asset authority at time of breach
$000
Amount in excess of net asset balance
 $000

Excess departmental net asset holding, without authority of an Imprest Supply Act

   
New Zealand Customs Service 136,780 38
New Zealand Defence Force 5,279,585 259,252
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