Findings
Key cost findings
Cost findings include total spending overall and by cohort.[2] They also provide information regarding changes in spending since the previous reporting period both in nominal and inflation-adjusted terms.
Agencies spent $1.722 billion on A&S services in Financial Year (FY) 2010/11, and the distribution of A&S service expenditure shows that ICT continues to make up a significant share of expenditure. The 31 agencies measured spent $1.722 billion in FY 2010/11. As in FY 2009/10, ICT is about 57 percent of A&S service cost. Figure 1 shows the distribution of spend across the six A&S service functions for FY 2010/11.[3]
- Figure 1 | Distribution of spend across the six A&S service functions
The medium-sized and large agency cohorts make up almost 95 percent of A&S service expenditure. Figure 2 shows the proportion of A&S expenditure by cohort.
- Figure 2 | Distribution of A&S expenditure by cohort
The small agency cohort spending of $109.7 million is 6.4 percent of spending; medium-sized agency cohort spending of $647.3 million is 37.6 percent; and large agency cohort spending of $965.3 million is 56 percent.
Agencies that were measured in both FY 2009/10 and FY 2010/11 reported a nominal A&S spending increase of nearly $19 million, which is a reduction of over $20 million when adjusted for inflation. A&S nominal spending was $1.704 billion in FY 2009/10 and $1.722 billion in FY 2010/11, an increase of $18.8 million or 1.1 percent. When adjusted for inflation, the $1.704 billion spent on A&S services in FY 2009/10 is $1.743 billion in FY 2010/11 dollars, representing a $20.4 million (or 1.2 percent) reduction.[4]
Changes in costs both nominally and when adjusted for inflation are shown in figure 3.
| Expenditure | Changes in nominal expenditure | Changes in expenditure when adjusted for inflation | |||||
|---|---|---|---|---|---|---|---|
| Function | FY 2009/10 nominal expenditure | FY 2009/10 expenditure in FY 2010/11 dollars |
FY 2010/11 expenditure | Dollar change | Percentage change | Dollar change | Percentage change |
| ICT | $955.3m | $977.3m | $980.0m | $24.7m ↑ | 2.6% ↑ | $2.8m ↑ | 0.3% ↑ |
| Property | $192.4m | $196.8m | $193.2m | $0.8m ↑ | 0.4% ↑ | $3.6m ↓ | 1.9% ↓ |
| HR | $166.3m | $170.1m | $160.1m | $6.3m ↓ | 3.8% ↓ | $10.1m ↓ | 5.9% ↓ |
| Finance | $135.0m | $138.1m | $127.7m | $7.3m ↓ | 5.4% ↓ | $10.5m ↓ | 7.6% ↓ |
| CES | $190.7m | $195.1m | $189.3m | $1.4m ↓ | 0.7% ↓ | $5.8m ↓ | 3.0% ↓ |
| Procurement | $63.7m | $65.2m | $72.0m | $8.3m ↑ | 13.0% ↑ | $6.8m ↑ | 10.4% ↑ |
| All functions | $1.704b | $1.743b | $1.722b | $18.8.m ↑ | 1.1% ↑ | $20.4m ↓ | 1.2% ↓ |
Notes
- [2]The 31 agencies that participated in this exercise have, for the purposes of comparison, been organised into four cohorts - 'NZ full cohort' refers to all 31 agencies; 'small agency cohort' refers to agencies with <500 FTEs and/or organisational running costs (ORC) of <$95 million; 'medium-sized agency cohort' refers to agencies with 500 to 2,500 FTEs and/or ORC of $95 million to $300 million; and 'large agency cohort' refers to agencies with >2,500 FTEs and/or ORC of >$300 million.
- [3]Note that Procurement cost information should be treated with caution due to data quality issues described in the Procurement chapter.
- [4]Inflation-adjusted costs are based on the annualised average Consumer Price Index (CPI) increase of 2.3 percent, excluding the Goods and Services Tax (GST) increase.
