Provision of Financial Services to the New Zealand Local Government Funding Agency
Scope of Appropriation
This appropriation is limited to expenses incurred in connection with the provision of financial services on a commercial basis to the New Zealand LGFA. This is a Revenue-Dependent Appropriation (RDA).
Significant Work Completed During 2011/12
- Significant work on system development and legal work on contract documentation was completed in advance of LGFA going live.
LGFA commenced operations in February and since this time the Treasury has provided outsourced services to the level set out in the service level agreement. This included bond tendering, processing of on-lending to local councils, executing investment and derivative transactions as required and providing daily valuation and risk reports.
As this appropriation was established during the 2011/12 year, no performance measures were formally agreed for the year in review.
| 2011 Actual $000 |
Provision of Financial Services to LGFA | 2012 Actual $000 |
2012 Main Estimates $000 |
2012 Supp. Estimates $000 |
|---|---|---|---|---|
| - | Expenses | 271 | - | 250 |
Funded by: |
||||
| - | Revenue Crown | - | - | - |
| - | Other revenue | 271 | - | 250 |
In December 2011, Cabinet agreed that NZDMO would provide a standby liquidity facility and outsourced service to the New Zealand Local Government Authority. An RDA was established and an annual fee negotiated between the two parties to recover the cost of providing the service.
