Vote Parliamentary Service - Finance and Government Administration Sector - The Estimates of Appropriations 2017/18 - Estimates 2017/18

Overview of the Vote#

The Speaker of the House of Representatives is responsible for annual appropriations in Vote Parliamentary Service for the 2017/18 financial year covering the following:

• a total of just over $60 million for purchasing administrative services and building operations from the Parliamentary Service
• a total of $425,000 for support to the Speaker's office including the 7th Appropriations Review Committee
• a total of just over $5 million for departmental capital expenditure
• a total of $22 million for payment of members' salaries and allowances
• a total over $3 million on members' communications for voice, data, standard office software, standard office products and stationery
• a total of just under $5 million on travel for members of Parliament and others
• a total of just under $3 million for payment of accommodation of members and travel of members' families
• a total of just over $1 million for the transitional costs arising from a General Election
• a total of just under $10 million for the Parliamentary Accommodation Strategy
• a total of just over $1 million on travel for qualifying former members of Parliament, and
• a total of $14 million for depreciation related to assets within the Parliamentary complex.

The Speaker is also responsible for the following multi-year appropriations that include the 2017/18 year:

• a total of just over $112 million for support to members of Parliament and their parties for the full term of the 51st Parliament
• a total of just over $125 million for support to members of Parliament and their parties for the full term of the 52nd Parliament, and
• a total of just under $16 million for multi-year capital investment for the parliamentary precinct.

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Multi-Year Appropriations#

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

1.2 - Trends in the Vote#

Summary of Financial Activity#

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 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#

Output Expenses have reduced from 2014/15 onwards, as the Services to Members appropriation was phased out from Departmental to Non-Departmental Other Expenses. The Output Expenses now only includes Support Services to the Speaker.

There has been an increase in Other Expenses from 2014/15 onwards, primarily due to the Services to Members appropriation which has moved from Departmental to Non-Departmental.

Operations, Informations and Advisory Service (MCA) has increased in 2017/18 due to:

• increase in the Service's capability and capacity
• transitional costs for the 2017 General Election, and
• departmental costs resulting from the 6th Appropriations Review Committee's recommendations for out-of-Parliament office security, furniture and IST support.

Capital Expenditure is higher in 2016/17 and 2017/18 due to a number of significant projects for Crown buildings including the debating chamber sound system, Executive Wing (Beehive) ground floor refurbishment for the new visitors entrance, Parliamentary Library chiller replacement and the Parliamentary Accommodation Strategy.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Support Services to the Speaker (M78)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the running of Speaker's office as well as providing external triennial reviews of the appropriations supporting Parliament.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Customer satisfaction of at least 4 on a scale of 1-5 in the annual Speaker's satisfaction survey, a 1 being 'Not satisfied at all' and 5 being 'Very satisfied'.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Parliamentary Service in the Annual Report to be presented to the House.

Reasons for Change in Appropriation

The increase in this appropriation for 2017/18 is due to a fiscally neutral adjustment from Operations, Information and Advisory Services multi-category appropriation for costs associated with the triennial Appropriations Review Committee.

2.3 - Departmental Capital Expenditure and Capital Injections#

Parliamentary Service - Capital Expenditure PLA (M78)#

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the replacement of life-expired assets and purchase or development of assets in support of the delivery of Parliamentary Service's outcomes.

How Performance will be Assessed and End of Year Reporting Requirements

Expenditure is in accordance with the Parliamentary Service's capital asset programme.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Parliamentary Service in the Annual Report to be presented to the House.

Reasons for Change in Appropriation

The Service revised its capital spend profile based on its capital plan for 2016/17. For 2017/18 it is proposing to spend its allocated capital appropriation.

Capital Injections and Movements in Departmental Net Assets

Parliamentary Service

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Accommodation of Members and Travel of Members' Families PLA (M78)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the supply of accommodation of Members and travel of Members' families.

End of Year Performance Reporting

An exemption has been provided under s15D(2)(b)(ii) of the Public Finance Act (PFA), as it is solely limited to payments for accommodation services. Performance information relating to administration of these payments is provided under the MCA Category Personnel, Accounting and Advisory Services to Members and Other Parliamentary Agencies. Additional information will be disclosed on a quarterly basis under s.30 of the Members of Parliament (Remuneration and Services) Act 2013.

Additional Support for Members (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for members for matters that are outside their control relating to sensory or physical impairment.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA as additional performance information is unlikely to be informative as it is solely for the additional support of Members of Parliament where there's sensory or physical impairment that is beyond the members control. Performance information relating to administration of these payments is provided under the MCA category Personnel, Accounting and Advisory Services to Members and Other Parliamentary Agencies.

Current and Past Policy Initiatives#

Additional Support for Members (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for members for matters that are outside their control relating to sensory or physical impairment or other events beyond their control.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA as additional performance information is unlikely to be informative as it is solely for the additional support of Members of Parliament where there is sensory or physical impairment that is beyond the members control. Performance information relating to administration of these payments is provided under MCA category Personnel, Accounting and Advisory Services to Members and Other Parliamentary Agencies.

Reasons for Change in Appropriation#

This is a new appropriation replacing a previous multi-year appropriation.

Depreciation Expense on Parliamentary Complex (M78)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the decrease in value of assets relating to furniture, library, art and antiques associated to the Parliamentary buildings.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the depreciation of Crown assets. Performance information relating the administration of this payment is provided under the MCA category Building and Operations Management.

Members' Communications (M78)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve communication costs solely for members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for members' communication costs. Performance information relating to administration of the payment is provided under the MCA category Parliamentary Information Communications and Technology Services.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

The increase in this appropriation for 2017/18 is mainly due to higher the Members' Communications - Additional Support budget initiative offset with a fiscally neutral transfer that impacted 2016/17 only.

Members of the House of Representatives' Salaries and Allowances PLA (M78)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve payments of salaries and allowances as determined by the Remuneration Authority solely for members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of salaries and allowances. Performance information relating to administration of the payments is provided under the MCA category Personnel, Accounting and Advisory Services to Members and Other Parliamentary Agencies.

Party and Member Support - ACT (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the ACT Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA as additional performance information is unlikely to be informative because this appropriation is solely for the support of the ACT Parliamentary Party.

Current and Past Policy Initiatives#

Party and Member Support - ACT (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the ACT Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA as additional performance information is unlikely to be informative because this appropriation is solely for the support of the ACT Parliamentary Party.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation replacing a previous multi-year appropriation.

Party and Member Support - Green (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the Green Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the Green Parliamentary Party.

Current and Past Policy Initiatives#

Party and Member Support - Green (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the Green Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the Green Parliamentary Party.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation replacing a previous multi-year appropriation.

Party and Member Support - Labour (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the Labour Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the Labour Parliamentary Party.

Current and Past Policy Initiatives#

Party and Member Support - Labour (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the Labour Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the Labour Parliamentary Party.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation replacing a previous multi-year appropriation.

Party and Member Support - Maori (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the Maori Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the Maori Parliamentary Party.

Current and Past Policy Initiatives#

Party and Member Support - Maori (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the Maori Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the Maori Parliamentary Party.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation replacing a previous multi-year appropriation.

Party and Member Support - National (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the National Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the National Parliamentary Party.

Current and Past Policy Initiatives#

Party and Member Support - National (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the National Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the National Parliamentary Party.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation replacing a previous multi-year appropriation.

Party and Member Support - New Zealand First (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the New Zealand First Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the New Zealand First Parliamentary Party.

Current and Past Policy Initiatives#

Party and Member Support - New Zealand First (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the New Zealand First Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the New Zealand First Parliamentary Party.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation replacing a previous multi-year appropriation.

Introduction#

Purpose of the Estimates of Appropriations#

The Estimates of Appropriations (the Estimates) provides members of Parliament with:

• Details of the terms of all proposed appropriations and of capital injections to departments and Offices of Parliament.
• Supporting information providing for each appropriation or category of a multi-category appropriation:
  • a concise explanation of what is intended to be achieved, and
  • (unless an appropriation has been exempted from end-of-year performance reporting)
    • a concise explanation of how performance will be assessed
    • who will report on what was achieved with the appropriation, and
    • in what document that report will be presented to the House of Representatives.

The information ensures that Parliament can exercise an appropriate level of scrutiny and control over the Government's operating and investing activities and provides a basis against which Parliament can, after the end of the financial year, assess actual performance against each appropriation (or category of a multi-category appropriation).

The 10 sector volumes of the Estimates are presented to the House of Representatives on the same day as the Government introduces the main Appropriation Bill for each financial year.

How the Estimates of Appropriations are Organised#

The Estimates of Appropriations is organised into 10 volumes (B.5 Vols 1-10) by sector, each of which covers one or more Votes. The scope of each sector and the allocation of Votes to a sector reflect a balancing of three desired characteristics - namely that each volume should, as far as possible:

• reflect natural sectors
• keep together Votes administered by the same department, and
• keep together Votes allocated to a particular select committee of the House of Representatives for examination.

The number of sectors and coverage of each sector was set initially in consultation with the Finance and Expenditure Committee.

The number of Votes has increased from 44 in the 2016/17 Estimates of Appropriations to 46 for 2017/18 as:

• Vote Vulnerable Children, Oranga Tamariki was created on 1 April 2017 (and included in the 2016/17 Supplementary Estimates) consequent on the establishment of the Ministry for Vulnerable Children, Oranga Tamariki
• Vote Social Housing has been created by transferring relevant appropriations from Vote Social Development and Vote Building and Housing.

The table below shows the Votes in each sector and which department (or Office of Parliament) administers each Vote.

Votes in Each Sector#

Appropriations#

Purpose and Nature of Appropriations#

An appropriation is a statutory authority from Parliament allowing the Crown or an Office of Parliament to incur expenses or capital expenditure.

Neither the Crown nor an Office of Parliament can legally incur any expense or capital expenditure - as those terms are defined in the Public Finance Act 1989 (PFA) - unless it is expressly authorised by or under an Act of Parliament.

Limits Created by Appropriations#

Each appropriation is allocated to, and managed as, one of seven types of appropriation.

Each appropriation has a defined scope that limits the uses or activities for which the expenses or capital expenditure can be incurred. The scope should be sufficient on its own to establish the nature and extent of the authority to incur expenses or capital expenditure. The wording of the appropriation scope should achieve the balance between being sufficiently precise to act as an effective constraint against non-authorised activities and not so specific that it inadvertently limits activity intended to be authorised.

Except in a very limited number of cases (eg, permanent appropriations or revenue dependent appropriations) an appropriation also limits the amount of expenses or capital expenditure that can be incurred, and the time period within which those expenses or capital expenditure can be incurred.

Aside from the very limited exclusions provided for in the PFA, the amount of expense or capital expenditure authorised by an appropriation is measured in accordance with generally accepted accounting practice.

Responsibility for Appropriations#

The PFA requires each appropriation to be the responsibility of one Minister (or the Speaker) and to be administered by one department (or an Office of Parliament).

A Vote is a group of appropriations (and can be a single appropriation) administered by a single department or Office of Parliament. Different appropriations within a Vote may be the responsibility of different Ministers.

Types of Appropriation#

The PFA provides for seven types of appropriation. Four appropriation types authorise the incurring of expenses; one type authorises the incurring of capital expenditure; and the remaining types authorise both. These appropriation types can be further differentiated by whether the expenses or capital expenditure are departmental or non-departmental transactions.

Types of Output Expense Appropriations#

Some variation is possible for output expense appropriations. For example, the constraint on the amount of expense that can be incurred is not always a fixed sum.

Appropriation Period#

Three kinds of appropriation can be distinguished on the basis of period - annual and multi-year (as referred to in the above table on types of output expense appropriations), and permanent:

• Annual Appropriations - Most appropriations allow expenses or capital expenditure to be incurred only during a particular financial year. The amounts for RDAs are forecasts only.
• Multi-Year Appropriations (MYAs) - The PFA also permits appropriations that allow expenses or capital expenditure to be incurred during a specified period that spans the whole or parts of more than one financial year, but no more than five financial years.
• Permanent Appropriations (sometimes referred to as permanent legislative authorities or PLAs) -Permanent appropriations are authorised by legislation other than an Appropriation Act and continue in effect until revoked by Parliament. Generally the authorising legislation will impose limits on the scope of the appropriation and not its amount. For those appropriations with limits set in cash terms, section 11(2) of the Public Finance Act 1989 requires that they be reported on an accrual basis. The usual legislative wording allows for expenses to be incurred for the purpose specified in the legislation “without further appropriation than this section”. The scope of a permanent appropriation will reference the relevant section of the authorising legislation.

Types of Crown Revenue and Capital Receipts#

An operating and capital split also applies to Crown revenue and receipts. The following table outlines the three Crown revenue/receipt types:

Capital Injections and Movements in Net Assets#

A capital injection is an investment by the Crown in a department (or an Office of Parliament), which increases the department's net asset balance. Section 12A of the PFA requires capital injections to departments or an Office of Parliament to be authorised under an Appropriation Act.

Further information on capital injections and other movements in a department's net asset balance appears in the Estimates in a Vote that has appropriations belonging to a department's responsible Minister. The movements reconcile a department's opening and closing net asset balances. This makes it easier to see the balance sheet flows.

Guide to Reading the Estimates of Appropriations#

After the introduction in each sector volume, the following information is provided, where applicable, for each Vote within the sector.

Guide to Reading the Estimates of Appropriations (continued)#

* This appropriation is used for events that cannot be related back to output production and for the salaries of the Officers of Parliament as determined by the Remuneration Authority.

** The purchase or development of assets by a department (other than an intelligence and security department) is made under a permanent appropriation authorised by section 24 of the PFA. Capital expenditure is defined in the PFA as the cost of assets acquired or developed, including tangible, intangible or financial assets, and any ownership interest in entities, but excluding inventories.

Useful Links#

• The suite of documents presented to the House on Budget day can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2017
• Summary Tables, which are available online, provide a high-level perspective and comparative “ready reference” for all appropriations (annual, permanent and MYAs). They cover:
  • the trends for all Votes - showing actual or estimated actual totals for the five years to 2016/17, Budget totals proposed for 2017/18 and estimated totals for the three financial years to 2020/21 with respect to each type of appropriation and of Crown revenue and capital receipts
  • each appropriation type and total appropriations - showing budgeted and estimated actual totals for 2016/17 and totals proposed for 2017/18 for each Vote
  • multi category expenses and capital expenditure (MCAs)
  • current-year revenue-dependent appropriations for each Vote
  • multi-year appropriations by Vote, appropriation type and period
  • capital injection authorisations for 2017/18, and
  • types of Crown revenue and Crown capital receipts for 2016/17 and 2017/18 associated with each Vote.

For inclusion in the Summary Tables, MYAs are converted into actual or forecast amounts for each financial year. The summary tables can be accessed here: www.treasury.govt.nz/budget/2017/summarytables/estimates/

An electronic archive of Budgets of the Government of New Zealand from 1997 to 2016 can be accessed here: www.treasury.govt.nz/budget/archive

How the Estimates Relate to Other Performance Information Presented to the House #

This section outlines the relationship between the information in the Estimates and other performance information presented to the House.

Strategic Intentions#

Each department, Office of Parliament, Crown entity and Public Finance Act Schedule 4A company presents information on its strategic intentions to the House, at least once every three years. It may be more frequently if the responsible Minister requires it; or if there is a material or significant change in the intentions; or the information in the strategic intentions is false or misleading.

Strategic intentions set out the direction of an agency and how the agency is organised to get there. The information must cover at least the next four financial years, and may include the current financial year. An agency's most recent strategic intentions must always be available on the agency's website, and can be presented to the House with other information eg, the annual report for the previous financial year or grouped with other agencies in a sector.

Annual Performance Expectations#

What an agency (eg, department, Office of Parliament, Crown entity or other service provider) intends to achieve with expenditure from appropriations in the next financial year and how each agency will demonstrate its performance (if not exempted) is available in the Estimates.

In addition, Crown entities and Public Finance Act Schedule 4A companies may have reportable outputs that are funded from revenue other than appropriations. What each agency intends to achieve and how it will demonstrate its performance for all its reportable outputs are presented to the House in a Statement of Performance Expectations. The Statement of Performance Expectations must always be available on an agency's website and can be presented to the House with other information eg, the strategic intentions or annual report.

End of Year Performance Information#

Performance information on what has been achieved with each appropriation as a whole and each category of a multi-category appropriation is provided to the House in the document most recently indicated in the Estimates or Supplementary Estimates. For example, reporting against appropriations would typically be provided to the House with the annual report of the appropriation administrator (department or Office of Parliament), the Crown entity receiving the appropriation, or in a Minister's report. Alternatively, information on the performance of an appropriation may be provided in a separate sector or thematic report where this would be more useful to Parliament.

Departmental, Office of Parliament, Crown entity, PFA Schedule 4A Company annual reports, and Ministerial reports on what has been achieved with appropriations are required to be provided to the House in the timeframes indicated below:

• Departmental and Office of Parliament annual report -each department's annual report must be presented 3-4 months after the end of the financial year. The annual report includes the financial statements for the previous financial year, the forecast financial statements for the current financial year, the statement of expenses and capital expenditure, and reporting against the department's strategic intentions and annual performance expectations contained in the Estimates.
• Crown entity orPFA Schedule 4A company annual report - each annual report must be presented 4-5 months after the end of the financial year and includes the financial statements, as well as reporting against the Crown entity's strategic intentions and annual performance expectations from all sources of reportable revenue.
• Appropriation Minister's report - the appropriation Minister must present within 4 months after the end of the financial year a report on what has been achieved with non-departmental appropriations that are not reported to the House thorough any other mechanism and have not been exempted from year-end reporting under s.15D of the PFA.

Terms and Definitions#

The table below contains terms that are used in the Estimates of Appropriations.

Vol 5 Social Sector Overview#

Social Sector Overview Statement#

Two appropriations in Vote State Services in this volume are to be used by the Social Investment Agency which supports the Minister Responsible for Social Investment and the Social Sector.  The Social Sector includes Vote Education (in volume 2), Vote Health (in volume 6), Vote Corrections, Vote Courts, Vote Justice and Vote Police (all in volume 7), Vote Māori Development and Vote Pacific Peoples (both in volume 8) and Vote Building and Housing, Vote Social Development, Vote Social Housing and Vote Vulnerable Children, Oranga Tamariki (all in volume 10).

Government Priorities for the Social Sector#

Agencies within the social sector deal with some of the most complex issues facing New Zealand today. For very vulnerable New Zealanders the solutions do not sit within the ambit of a single agency and so agencies have to take person and family/whānau-centred ways of working to improve outcomes. The sector collaborates and undertakes joint activity at local, regional and national levels, when necessary to achieve Government Priorities such as through the focus on investing in vulnerable children through the establishment of a new government agency, and the Better Public Services Results Programme. Some example areas requiring cross-agency collaboration include Welfare Dependence, Health Outcomes for Children, Educational Attainment and Social Housing.

The Government's intent to implement social investment approaches across the social sector provides an opportunity for agencies to sharpen their focus on lifting outcomes for all New Zealanders, but particularly for the most vulnerable. Social investment promotes a client-centred approach so the social sector can help improve the lives of vulnerable New Zealanders and increase the effectiveness of government spending.

Social investment at its most simple is about investing earlier, and more effectively, in the lives of those who may otherwise be on track to experience poor outcomes so they achieve better in the longer-term and at a lower total cost. This will be achieved through better use of data and evidence, more rigorous programme evaluation and both a whole-of-life and whole-of-system understanding of impact, centred around people, not agencies, and whole of life service decision-making and delivery systems.

The Government has established a new portfolio with a Minister Responsible for Social Investment to further advance social investment. As well as better understanding and addressing need within portfolios, social investment approaches will increase understanding of the whole-of-social-system response required to achieve desired outcomes for particular groups of people over their lifetime.

To support the Minister and the sector, a Social Investment Board and Social Investment Agency are being established on 1 July 2017.

How we will Deliver on Government Priorities#

Social Sector agencies will continue to develop social investment approaches in their sectors. Agencies are furthering their understanding of the application of investment approaches. There are now investment approaches to welfare, social housing and justice. The Ministry for Vulnerable Children, Oranga Tamariki, launched on 1 April 2017, is taking an investment approach to vulnerable children and is the first agency established from day one using a social investment approach.

The Social Investment Board will drive action to improve outcomes for vulnerable population. It will:

• advise on the strategic direction, priorities and joint results for the social sector in areas where better results cannot be achieved without a collective approach
• advise on best investments for achieving joint results, including advice on optimal resource allocations and any reprioritisation across time, and how investments are performing
• oversee the implementation of any investment plans agreed by the government, working with social sector agencies to deliver demonstrable results.

Social sector agencies are continuing to trial new ways of working. A number of frontline initiatives are adopting social investment principles, for example Whānau Ora, the Family Violence Integrated Safety Response and Place-Based Initiatives. Whānau Ora supports whānau to achieve their aspirations by placing whānau at the centre of planning and decision-making and tailoring solutions relevant to their unique circumstances. The Integrated Safety Response tests an improved multi-agency approach to risk assessment and safety planning for families following a Police family violence incident or high risk prison release. The Place-Based Initiatives aim to improve outcomes for at-risk young people and their families by giving local social sector leaders the data, flexibility and support to collectively tailor responses to what works in their specific communities.

Agencies will be assisted by the social investment architecture developed by the Social Investment Agency. This will include tools, templates, methodologies and analysis to drive effective practice across the social sector. The Social Investment Agency will also provide whole of life and whole of system advice to Ministers, monitor capability across the sector and monitor the impact of some investments and the social investment approach.

How we will Measure Performance #

Measurement is inherent in social investment approaches. It includes:

• Measurement and evaluation to ensure service effectiveness
• Feedback loops to inform decision makers
• Commissioning of services to achieve desired outcomes
• Social licence to gain New Zealanders' support for the sharing and use of data
• Governance across the social investment system so we can better understand the impact we are having.

There is an expectation that social sector agencies will use social investment approaches to enhance their business as usual operations. Greater use of data and evidence and a focus on tracking outcomes will continue to improve agencies' understanding of their customers and service effectiveness, and enable them to identify opportunities across the system to reduce future demand pressures.

The Social Investment Board will formalise the collective accountability of chief executives for social investment advice and the delivery of results. The Board will have a role in monitoring the performance of investments.

Party and Member Support - United Future (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the United Future Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for the support of the United Future Parliamentary Party.

Party and Member Support - United Future (M78)#

Scope of Appropriation and Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for the United Future Parliamentary Party and its members.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because the appropriation is solely for the support of the United Future Parliamentary Party.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation replacing a previous multi-year appropriation.

Transitional costs between Parliaments (M78)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the transition between 51st and 52nd Parliaments.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption has been provided under s15D(2)(b)(ii) pf the PFA as additional performance informations is unlikely to be informative because this appropriation is solely for the transitional costs between the 51st and 52nd Parliaments.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation.

Travel of former MPs (M78)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the supply of travel solely for former members. The level of such costs will be determined by the Remuneration Authority.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as it is solely limited to payments for travel services. Performance information relating to administration of these payments is provided under the MCA Category Personnel, Accounting and Advisory Services to Members and Other Parliamentary Agencies. Additional information will be disclosed on a quarterly basis under s.30 of the Members of Parliament (Remuneration and Services) Act 2013.

Travel of Members and Others (M78)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the travel of members and others.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(ii) of the PFA, as it is solely limited to payments for travel services. Performance information relating to administration of these payments is provided under the MCA category Personnel, Accounting and Advisory Services to Members and Other Parliamentary Agencies. Additional information will be disclosed on a quarterly basis under s.30 of the Members of Parliament (Remuneration and Services) Act 2013.

Current and Past Policy Initiatives#

3.5 - Non-Departmental Capital Expenditure#

Crown Asset Management (M78)#

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve that the Parliamentary complex will be maintained in an appropriate manner.

How Performance will be Assessed and End of Year Reporting Requirements

Expenditure is in accordance with the Parliamentary Service's capital asset programme.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Parliamentary Service in its Annual Report to be tabled in the House. Performance information for this appropriation will be reported by Parliamentary Service in its Annual Report to be tabled in the House.

Current and Past Policy Initiatives

Parliamentary Accommodation Strategy (M78)#

Scope of Appropriation#

Capital Expenditure#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the implementation of the Future Accommodation Strategy at Parliament.

End of Year Performance Reporting#

An exemption has been provided under s15D(2)(b)(iii) of the PFA as the capital expenditure in 2016/17 and 2017/18 is less than $15 million per annum.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

The increase in this appropriation for 2017/18 is for the completion of detailed design along with local authority consents for the Parliamentary Accommodation Strategy related to the Ministers and Members buildings.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Operations, Information and Advisory Services (M78)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the successful operation of Parliament. The parliamentary precincts meet the constitutional and institutional requirements of a Parliament; that is, providing accessibility and security, a forum for debate and public participation, and effective office facilities and support services.

How Performance will be Assessed for this Appropriation

What is Intended to be Achieved with each Category and How Performance will be Assessed

Note 1 - Members of Parliament customer satisfaction is based on the Net Promoter Systems (NPS). The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoter of the Service. The NPS was introduced in Quarter Four 2016/17 to provide real-time feedback from members of Parliament on how well the Parliamentary Service has delivered services to them. Members of Parliament are asked to provide feedback on overall quality of services as well as specific services lines. A positive NPS score indicates that service delivery is very good.

Note 2 - Independent survey of new and returning members of Parliament following the general election of 2017 assessing their overall satisfaction rating with the quality of services received during the transition of Parliament.

Note 3 - Through the use of effective security screening visitor management, proceedings of the House of Representatives are not interrupted.

Note 4 - Maintenance work is outlined in the Service's Capital Asset Management Plan (CAMP). The completion of deliverables within the plan is designed to prevent deterioration of the heritage buildings and ensure no outage of building services. This will help ensure that access to and use of the buildings is not negatively impacted by significant plant/systems failure. 'Be Accessible' is a social change initiative in New Zealand designed to promote greater levels of accessibility throughout the country. There are several assessment ratings for organisations that showcase an organisation's accessibility. The rating are Just Started (just starting on a journey towards being accessible), Bronze (positive steps towards being accessible), Silver (good levels of accessibility in a number of areas), Gold (excellent levels of accessibility in a number of areas) and Platinum (a model of first class accessibility in almost all areas of business).

Note 5 - The Service is responding as a Person Conducting a Business Undertaking (PCBU) of staff working in out-of-Parliament offices under the new 2016 Health and Safety legislation. The Service is also aligning with the Government mandate to adhere to the new Protective Security Requirements (PSR) which sets minimum standards for personnel, physical and information security. The PSR features a Capability Maturity Model (CMM) that assists agencies to assess their current capability across a number of protective security dimensions, identify capability levels that are appropriate to the security risks they face, and to identify some of the ways in which capability could be lifted.

Note 6 - The standard for responding to and resolving security incidents has been set at 24 hours (working days) due to the complexities of the ownership of the office (where the member of Parliament is the leaseholder), remoteness of some office locations and contacting all affected Parliamentary Service employees. This standard does not include weekends where possible response times could be delayed and thus exceed 24 hours.

Note 7 - Business hours are defined as 7.30am to 11.00pm while the House of Representatives is sitting and 7.30am to 6.00pm on non-sitting days.

Note 8 - Receipt is regarded as the date the candidate's application is received through the online e-recruitment system, following a request from a member and receipt of a completed nomination form.

Note 9 - The six payroll organisations are Parliamentary Service, Parliamentary Service (Crown), Members of Parliament, Ministers, Office of the Clerk of the House of Representatives and Parliamentary Counsel Office.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Parliamentary Service in its Annual Report to be presented to the House.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This increase in this appropriation in 2017/18 is mainly due to an increase of $5.851 million relating to new budget intiatives offset by $3.870 million from an expense transfer and other additional revenue relating to 2016/17 that is not available in 2017/18.