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Putting It Together: An Explanatory Guide to New Zealand's State Sector Financial Management System

Appendix C: Relationship between the Types of Appropriation in the Estimates and the Information Supporting the Estimates, Statements of Intent, and Annual Reports

Relationship between the Types of Appropriation in the Estimates and the Information Supporting the Estimates, Statements of Intent, and Annual Reports
  Departmental Output Expenses (DOE) Non-Departmental Output Expenses (NDOE) Benefits and Other Unrequited Expenses
 (BOUE)
Borrowing Expenses Departmental Other Expenses Non-Departmental Other Expenses Departmental Capital Expenditure Non-Departmental Capital Expenditure Expenses or Capital Expenditure incurred by an Intelligence and Security Department
Estimates Amount, scope and period of appropriation(s) for services to be supplied by the department which administers the Vote - in every Vote except those administered by intelligence and security departments. Amount, scope and period of appropriation(s) for services to be purchased by the Crown from Crown entities or other third parties - in less than half of all Votes. Amount and scope of appropriations for benefits and other unrequited expenses - in only a small number of Votes. Amount and scope of appropriations for borrowing expenses - usually only in Vote Finance and Vote Revenue. Amount and scope of appropriations for operating expenses incurred by a department that are not output expenses - rare. Amount, scope and period of appropriations for non-departmental operating expenses that are not output, BOUE, or borrowing expenses - in many Votes. Amount and scope of appropriation for capital expenditure to be incurred by a department - a PLA under section 24 of the Public Finance Act - in Vote of the Minister responsible for a department's financial performance. Amount, scope and period of appropriations for capital expenditure to be incurred on acquiring or developing a non-departmental asset or investing in a Crown entity or other third party - in less than half of all Votes. Amount and scope of the single appropriation administered by an intelligence and security (I&S) department.
Information Supporting the Estimates Part 2.1 for each Vote provides information on the intended impacts, outcomes or objectives of, and the nature and standard of the services expected to be provided from, DOE appropriations. Part 2.2 provides information on the intended impacts, outcomes or objectives of, and the nature and standard of the services expected to be purchased from, NDOE appropriations plus a summary of service providers. Part 3.2 provides information on the intended impacts, outcomes or objectives of BOUE appropriations and the conditions on their use. Part 4.2 provides information on the intended impacts, outcomes or objectives of departmental other expense appropriations. Part 5.1 provides information on the intended impacts, outcomes or objectives of non-departmental other expense appropriations. Part 5.2 provides information on the intended impacts, outcomes or objectives of non-departmental other expense appropriations, the results expected from them, and the conditions on their use. Part 6.1 provides information on the intended impacts, outcomes or objectives of departmental capital expenditure. Part 6.2 provides information on the intended impacts, outcomes or objectives of non-departmental capital expenditure appropriations and the results expected from them. Part 1.3 only, which provides information on actual expenditure for previous financial years and forecast expenditure for future financial years.
Agency's Statement
of Intent (SoI)
Department's SoI provides information on the functions, intended operations and objectives of the department providing the services funded by these DOE appropriations. Where service provider is a Crown entity, its SoI provides information on its functions, intended operations and objectives. For other providers none None None Where departmental other expenses relate to major departmental restructuring, department's SoI should provide information about this. None Department's SoI provides information on the future operating intentions of the department, including on the department's capability to perform its functions. For capital investment in a Crown entity, its SoI provides information on expected results from that investment. For other capital investment, none An I&S department's SoI is not required to include a statement of forecast service performance, nor to be presented to the House or published.
Annual Report

Department's annual report includes:

·    Actual services provided from each DOE appropriation compared with what was forecast to be provided.

·    Actual expenditure incurred against each appropriation administered by the department.

Where service provider is a Crown entity, its annual report reports actual services purchased from NDOE appropriations. For other providers where amount is significant, actual services purchased are reported by Minister responsible for appropriation in report under s32A of PFA. Annual report of department administering these appropriations reports actual expenditure incurred against each BOUE appropriation. Annual report of department administering these appropriations reports actual expenditure incurred against each borrowing expense appropriation. Annual report of department reports actual expenditure incurred against each departmental other expense appropriation. Where expenditure by Crown entity, results achieved reported in Crown entity's annual report. In other cases where amount of a non-departmental other expense is significant, results achieved reported by Minister responsible for appropriation in report under section 32A of PFA. Department's annual report reports on department's performance during financial year, including capital expenditure it has incurred. Where investment in Crown entity, results achieved reported in Crown entity's annual report. In other cases where amount of non-departmental capital expenditure is significant, results achieved reported by Minister responsible for appropriation in report under section 32A of PFA. Annual reports of I&S departments presented to the House under section 4J(3) of the NZSIS Act 1969 or section 12(3) of the GCSB Act 2003 include actual expenditure incurred against appropriation but not statement of service performance.

 

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