Vote Ombudsmen - Finance and Government Administration Sector - Estimates 2019/20

Vote Ombudsmen#

APPROPRIATION MINISTER(S): Speaker of the House of Representatives (M78)

APPROPRIATION ADMINISTRATOR: Office of the Ombudsman

RESPONSIBLE MINISTER FOR OFFICE OF THE OMBUDSMAN: Speaker of the House of Representatives

Overview of the Vote#

The Speaker of the House of Representatives is responsible for appropriations in Vote Ombudsmen in 2019/20 totalling $25.962 million (GST exclusive). This comprises:

over $23 million annual appropriation for the Office of the Ombudsmen
$456,000 permanent legislative authority of Ombudsmen remuneration, and

just over $2 million permanent legislative authority for capital expenditure.

The whole of the Vote is committed to the investigation, resolution of complaints and the provision of advice relating to central and local government administrative actions, and monitoring compliance with international conventions.

The Speaker of the House of Representatives is also responsible for a capital injection of over $2 million to the Office of the Ombudsman to fund its capital expenditure.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type	Final Budgeted $000	Estimated Actual $000	Budget $000
	2018/19		2019/20
Departmental Output Expenses
*Investigation and Resolution of Complaints About Government Administration (M78)* This appropriation is limited to the investigation, resolution of complaints and the provision of advice relating to central and local government administrative actions, and monitoring compliance with international conventions.	18,179	18,179	23,424
Total Departmental Output Expenses	18,179	18,179	23,424
Departmental Other Expenses
*Remuneration of Ombudsmen PLA (M78)* This appropriation is limited to remuneration expenses for the Ombudsmen as authorised by sections 8 and 9 of the Ombudsmen Act 1975.	442	442	456
Total Departmental Other Expenses	442	442	456
Departmental Capital Expenditure
*Office of the Ombudsman - Capital Expenditure PLA (M78)* This appropriation is limited to the purchase or development of assets by and for the use of the Office of the Ombudsman, as authorised by section 24(1) of the Public Finance Act 1989.	541	541	2,082
Total Departmental Capital Expenditure	541	541	2,082
Total Annual Appropriations and Forecast Permanent Appropriations	19,162	19,162	25,962

Capital Injection Authorisations#

	2018/19		2019/20
	Final Budgeted $000	Estimated Actual $000	Budget $000
Office of the Ombudsman - Capital Injection (M78)	2,321	2,321	1,882

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative	Appropriation	2018/19 Final Budgeted $000	2019/20 Budget $000	2020/21 Estimated $000	2021/22 Estimated $000	2022/23 Estimated $000
Additional legal costs	Investigation and Resolution of Complaints about Government Administration Departmental Output Expenses	70	-	-	-	-
Retaining trained and experienced staff	Investigation and Resolution of Complaints about Government Administration Departmental Output Expenses	-	370	370	370	370
Monitoring places of detention	Investigation and Resolution of Complaints about Government Administration Departmental Output Expenses	-	4,243	6,709	9,136	9,196
International support and leadership	Investigation and Resolution of Complaints about Government Administration Department Output Expenses	-	936	1,091	951	1,091
Increased costs of accommodation	Investigation and Resolution of Complaints about Government Administration Department Output Expenses	72	74	74	74	74
Capital for monitoring places of detention	Department Capital Injection	-	1,751	402	568	-
Capital for international support and leadership	Department Capital Injection	-	128	-	-	-
Total Initiatives		142	7,502	8,646	11,099	10,731

1.2 - Trends in the Vote#

Summary of Financial Activity

	2014/15	2015/16	2016/17	2017/18	2018/19		2019/20			2020/21	2021/22	2022/23
	Actual $000	Actual $000	Actual $000	Actual $000	Final Budgeted $000	Estimated Actual $000	Departmental Transactions Budget $000	Non- Departmental Transactions Budget $000	Total Budget $000	Estimated $000	Estimated $000	Estimated $000
Appropriations
Output Expenses	9,868	11,495	13,598	16,062	18,179	18,179	23,424	-	23,424	25,645	27,706	27,906
Benefits or Related Expenses	-	-	-	-	-	-	N/A	-	-	-	-	-
Borrowing Expenses	-	-	-	-	-	-	-	-	-	-	-	-
Other Expenses	684	696	662	703	442	442	456	-	456	456	456	456
Capital Expenditure	699	343	718	1,826	541	541	2,082	-	2,082	602	768	200
Intelligence and Security Department Expenses and Capital Expenditure	-	-	-	-	-	-	-	N/A	-	-	-	-
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses	-	-	-	-	-	-	-	-	-	-	-	-
Other Expenses	-	-	-	-	-	-	-	-	-	-	-	-
Capital Expenditure	-	-	-	-	-	-	N/A	-	-	-	-	-
Total Appropriations	11,251	12,534	14,978	18,591	19,162	19,162	25,962	-	25,962	26,703	28,930	28,562
Crown Revenue and Capital Receipts
Tax Revenue	-	-	-	-	-	-	N/A	-	-	-	-	-
Non-Tax Revenue	-	-	-	-	-	-	N/A	-	-	-	-	-
Capital Receipts	-	-	-	-	-	-	N/A	-	-	-	-	-
Total Crown Revenue and Capital Receipts	-	-	-	-	-	-	N/A	-	-	-	-	-

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring

There have been no restructuring adjustments to prior year information in the Summary of Financial Activity table.

1.3 - Analysis of Significant Trends#

Analysis of Significant Trends

The bulk of the movement in departmental appropriations in Vote Ombudsmen, which are detailed in the Summary of Financial Activity table above, are largely driven by movements in departmental output expenses required to maintain an efficient, effective and professional Ombudsman function. Details of significant movements within each appropriation are shown below.

Departmental Output Expenses

The baseline movements amounting to approximately $6.196 million during the period detailed in the Summary of Financial Activity are due to:

As part of the 2015/16 Estimates Parliament approved a baseline increase for proactive advice, training and guidance, additional staff to assist with inspection and monitoring under the Crimes of Tortures Act 1989 and the United Nations Convention on the Rights of Persons with Disabilities, additional resources for capability, and security of the office's staff and information.
Supplementary funding was approved for the period 2015/16 for recruitment costs for a new Chief Ombudsman, accommodation, and Information, Communication and Technology (ICT) systems and capability.
As part of the 2016/17 Estimates Parliament approved a baseline increase over three years to clear the aged investigations and ongoing budgets for Official Information Act (OIA) compliance investigations, ICT systems and capability, Auckland office rent increase and address remuneration anomalies.
Supplementary funding was approved for the period 2016/17 for the establishment of new accommodation in Christchurch and expansion in Wellington, an adjustment for the reduction in the rate of capital charge and an expense transfer from 2016/17 to 2017/18.
As part of the 2017/18 Estimates funding was approved for ongoing costs of new accommodation, to align salaries with the current public sector market rates, revising the Case Management Systems, an adjustment for the reduction of capital charge, to monitor the treatment of detained people and an expense transfer from 2016/17 to 2017/18.
As part of the 2018/19 Estimates, funding was approved for retaining and rewarding staff, improving security, corporate support, case management IT system, APOR conference, and an expense transfer from 2017/18 to 2018/19.
As part of the 2019/20 Estimates, funding was approved for retaining trained and experienced staff, monitoring places of detention, international support and leadership, increased costs of accommodation, and an expense transfer from 2018/19 due to delayed projects.

Departmental Other Expenses

Movements in Departmental Other Expenses are wholly attributable to:

determinations issued by the Remuneration Authority relating to Ombudsmen remuneration and to decisions by Parliament regarding the number of Ombudsmen appointed at any one time. There is presently one permanent Ombudsman.

Capital Expenditure

Movements in the provision for capital expenditure follow:

The 2016/17 Estimates provides for an increased capital provision by $549,000 to $749,000 to reflect the capital needs for additional staff and to upgrade the Office's ICT capability to make the best use of the capital funding provided in the 2014/15 budget.
Supplementary funding was approved for the period 2016/17 for new accommodation in Christchurch and additional accommodation in Wellington.
The 2017/18 Estimates provides for an increased capital provision by $1.294 million to $1.494 million for ICT systems and capability and capital needs for new staff of the Optional Protocol to the Convention against Torture unit (OPCAT).
The 2018/19 Estimates provides for an increased capital provision by $2.321 million to $2.521 million for improving security, corporate support, and case management IT system.
The 2019/20 Estimates provides for an increased capital provision from $1.882 million to $2.082 million, for an accounting adjustment, monitoring places of detention, and international support and leadership.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Investigation and Resolution of Complaints About Government Administration (M78)

Scope of Appropriation

This appropriation is limited to the investigation, resolution of complaints and the provision of advice relating to central and local government administrative actions, and monitoring compliance with international conventions.

Expenses and Revenue

	2018/19		2019/20
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	18,179	18,179	23,424
Revenue from the Crown	18,179	18,179	23,424
Revenue from Others	-	-	-

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve investigation, review and inspection of the administrative conduct of state sector agencies, and provision of advice and guidance in order to ensure people are treated fairly in New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements

Assessment of Performance	Final Budgeted Standard	Estimated Actual	Budget Standard
	2018/19		2019/20
Improve public sector capability to do its work and make decisions - number of requests for advice or comment from public sector agencies responded to	200	400	300
Enable serious wrongdoing to be disclosed and investigated and whistleblowers protected - number of requests and enquiries completed	50	80	60
Ensure official information is increasingly available and not unlawfully refused - number of official information complaints completed	1,450	2,000	1,550
Identify flawed public sector decision making and processes and how to resolve them - number of OA complaints completed	2,100	2,100	2,100

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Office of the Ombudsman in the Annual Report to be presented in the House.

Current and Past Policy Initiatives

Policy Initiative	Year of First Impact	2018/19 Final Budgeted $000	2019/20 Budget $000	2020/21 Estimated $000	2021/22 Estimated $000	2022/23 Estimated $000
Current Parliament
Retaining trained and experienced staff	2019/20	-	370	370	370	370
Monitoring places of detention	2019/20	-	4,243	6,709	9,136	9,196
International support and leadership	2019/20	-	936	1,091	951	1,091
Increased costs of accommodation	2019/20	72	74	74	74	74
Retaining and rewarding staff	2018/19	511	511	511	511	511
Improving security	2018/19	662	350	350	124	124
Corporate support	2018/19	1,027	1,040	1,040	1,040	1,040
Case management IT system	2018/19	163	326	326	326	326
APOR conference	2018/19	152	-	-	-	-
Previous Parliament
Clearing aged investigations	2017/18	(965)	-	-	-	-
Monitoring detained people	2017/18	1,127	1,165	1,165	1,165	1,165
Retention of staff	2017/18	253	686	686	686	686
ICT systems	2017/18	332	269	269	269	269
Christchurch and Wellington accommodation	2016/17	322	322	322	322	322
Adjustment for capital charge	2016/17	(53)	(53)	(53)	(53)	(53)
Clear aged investigations	2016/17	965	-	-	-	-
OIA compliance investigations	2016/17	564	564	564	564	564
Address remuneration anomalies	2016/17	376	395	395	395	395
ICT systems and capabilities	2015/16	628	628	628	628	628
Corporate capacity - updating lease agreements	2015/16	20	20	20	20	20
Complaints and investigations	2015/16	340	340	340	340	340
Proactive advice, training and guidance	2015/16	166	166	166	166	166
Inspections and monitoring	2015/16	390	390	390	390	390
Security of staff and information	2015/16	126	126	126	126	126
Corporate and support capability	2015/16	360	360	360	360	360

Reasons for Change in Appropriation

The increase in this appropriation for 2019/20 is mainly due to:

$4.243 million for monitoring places of detention
$936,000 for international support and leadership
$400,000 expense transfer from 2018/19
$370,000 for retaining trained and experienced staff, and
$74,000 for increased costs of accommodation.

2.2 - Departmental Other Expenses#

Remuneration of Ombudsmen PLA (M78)

Scope of Appropriation

This appropriation is limited to remuneration expenses for the Ombudsmen as authorised by sections 8 and 9 of the Ombudsmen Act 1975.

Expenses

	2018/19		2019/20
	Final Budgeted $000	Estimated Actual $000	Budget $000
Total Appropriation	442	442	456

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve provision of remuneration payment to the Ombudsman as determined by the Remuneration Authority.

How Performance will be Assessed and End of Year Reporting Requirements

The Chief Ombudsman leads the performance of the Office. The performance of the Office's activities, including the above payment, is reflected in the information for departmental output appropriations.

End of Year Performance Reporting

Performance information for the Office will be reported in the Annual Report that is to be presented to the House.

2.3 - Departmental Capital Expenditure and Capital Injections#

Office of the Ombudsman - Capital Expenditure PLA (M78)

Scope of Appropriation

This appropriation is limited to the purchase or development of assets by and for the use of the Office of the Ombudsman, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure

	2018/19		2019/20
	Final Budgeted $000	Estimated Actual $000	Budget $000
Forests/Agricultural	-	-	-
Land	-	-	-
Property, Plant and Equipment	388	388	2,010
Intangibles	153	153	72
Other	-	-	-
Total Appropriation	541	541	2,082

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of assets for the use of the Office of the Ombudsman.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Office of the Ombudsman in the Annual Report to be tabled in the House.

Reasons for Change in Appropriation

The increase in this appropriation for 2019/20 to $2.082 million is mainly for the purchase of office fitout and equipment for monitoring places of detention and international support and leadership.

Capital Injections and Movements in Departmental Net Assets

Office of the Ombudsman

Details of Net Asset Schedule	2018/19 Estimated Actual $000	2019/20 Projected $000	Explanation of Projected Movements in 2019/20
Opening Balance	4,445	6,766
Capital Injections	2,321	1,882	Monitoring places of detention, and international support and leadership
Capital Withdrawals	-	-
Surplus to be Retained (Deficit Incurred)	-	-
Other Movements	-	-
Closing Balance	6,766	8,648