Estimates of appropriations

Vote Public Service - Finance and Government Administration Sector - Estimates 2021/22

Note 85

From the Estimates of Appropriations 2021/22 in Budget 2021, Vote State Services was renamed to Vote Public Service.

Vote Public Service#

APPROPRIATION MINISTER(S): Minister for Social Development and Employment (M63), Minister for the Public Service (M66)

DEPARTMENT ADMINISTERING THE VOTE: Public Service Commission (A36)

RESPONSIBLE MINISTER FOR PUBLIC SERVICE COMMISSION: Minister for the Public Service

Overview of the Vote#

The Minister for the Public Service is responsible for appropriations in Vote Public Service for the 2021/22 financial year covering:

  • a total of over $38 million to support decision-making by Ministers on Government policy matters and leading the Public Management System to ensure that the Public Service is collectively responsible and works together
  • a total of nearly $17 million for the remuneration and related employment costs of chief executives employed by the Commission
  • a total of $200,000 for payments associated with New Zealand's membership of the Open Government Partnership, and
  • a total of $100,000 for departmental capital expenditure for minor furniture and IT replacements.

The Minister for Social Development and Employment is responsible for appropriations in Vote Public Service for the 2021/22 financial year covering a total of nearly $7 million for the provision of strategic cross-system advice and support, creating insights, tools, and practices in order to implement the social wellbeing approach to support and further the long-term wellbeing of New Zealanders.

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

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2020/21 2021/22
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Leadership of the Public Management System (M66) (A36)

This appropriation is limited to ensuring the Public Management System has the design, capability and performance to deliver public services, and providing advice and services to support Ministers to discharge their portfolio responsibilities relating to the Public Management System.
38,818 38,818 38,468

Supporting Implementation of a Social Wellbeing Approach (M63) (A36)

This appropriation is limited to providing strategic cross-social-system advice and supporting cross-system work, creating insights, tools, and practices to support sector-wide implementation of a social wellbeing approach.
11,052 10,546 6,758

Total Departmental Output Expenses

49,870 49,364 45,226

Departmental Capital Expenditure

     

Public Service Commission - Capital Expenditure PLA (M66) (A36)

This appropriation is limited to the purchase or development of assets by and for the use of the Public Service Commission, as authorised by section 24(1) of the Public Finance Act 1989.
1,188 1,188 100

Total Departmental Capital Expenditure

1,188 1,188 100

Non-Departmental Other Expenses

     

Open Government Partnership (M66) (A36)

This appropriation is limited to payments associated with New Zealand's membership of the Open Government Partnership.
200 200 200

Remuneration and Related Employment Costs of Chief Executives (M66) (A36)

This appropriation is limited to the remuneration and costs relating to the employment of chief executives employed by the Public Service Commissioner.
16,692 14,901 16,614

Total Non-Departmental Other Expenses

16,892 15,101 16,814

Total Annual Appropriations and Forecast Permanent Appropriations

67,950 65,653 62,140

Capital Injection Authorisations#

  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Public Service Commission - Capital Injection (M66) (A36) 188 188 -

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative Appropriation 2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000
Delivering on the Public Service Commission's core functions, system leadership and Government Expectations Leadership of the Public Management System
Departmental Output Expense
- 1,622 1,622 1,622 1,622
Total Initiatives   - 1,622 1,622 1,622 1,622

Summary of Financial Activity

  2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
  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 39,330 45,167 43,543 44,673 49,870 49,364 45,226 - 45,226 43,402 42,162 42,135
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 14,081 14,940 15,167 15,538 16,892 15,101 - 16,814 16,814 17,526 17,540 17,552
Capital Expenditure 209 1,553 1,867 654 1,188 1,188 100 - 100 100 100 100
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

53,620 61,660 60,577 60,865 67,950 65,653 45,326 16,814 62,140 61,028 59,802 59,787

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 12,347 14,430 14,574 14,768 17,178 17,178 N/A 17,064 17,064 17,077 17,091 17,103
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

12,347 14,430 14,574 14,768 17,178 17,178 N/A 17,064 17,064 17,077 17,091 17,103

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 reported in last years' Summary of Financial Activity table.

Details of significant movements within each appropriation type are detailed below:

Appropriations

Output Expenses

Output expenses have been trending upwards since 2016/17 with two years seeing significant increases:

  • In 2017/18, output expenses increased by $5.837 million. The main reasons for this were because the Leadership Development Centre (LDC) became a branded business unit within the Public Service Commission (LDC is fully funded through external agencies), and the Social Wellbeing Agency (SWA) drew down on their contingency funding to deliver phase 2 of the Data Exchange project.
  • In 2020/21, output expenses increased by $5.197 million. The main reasons for this were because of the Public Service Fale (which was established in late 2019/20 but was not operating at full capacity until 2020/21), and the Clerical and Administration Pay Equity team. Both of these functions are funded through external agencies.

The 2021/22 budget sees a significant drop as phase 2 of the Data Exchange project is now finished, reducing SWA's budget significantly. The forecast is for the budget to drop further in 2022/23 and 2023/24 due to the Clerical and Administration Pay Equity team forecasting to finish partway through 2022/23.

Other Expenses

The increases in actual spend from 2016/17 to 2019/20 reflect the increase in the number of chief executives as a result of the increasing number of agencies. Actual expenditure in 2020/21 is lower than previous years due to the voluntary reduction in salaries undertaken by chief executives as a response to the COVID-19 pandemic. The budget in 2021/22 and outyears represents a return to normal salaries. However, these numbers are higher than 2016/17 to 2019/20 due to the inclusion of a contingency component to allow for unplanned expenditure relating to chief executives.

Capital Expenditure

Capital expenditure has been trending upwards since 2017/18. This is largely down to the significant changes in the Commission's operating environment requiring capital investment. These include the Commission:

  • leaving the Central Agencies Shared Services arrangement and purchasing its own IT hardware and infrastructure
  • growing in size over recent years (with a resultant need for more floor space and IT equipment), including the acquisition of the Leadership Development Centre and the Social Wellbeing Agency and their respective associated capital costs, and
  • undertaking a unified communications project to allow the Commission to be fully flexible in its approach to work.

Crown Revenue and Capital Receipts

Non-Tax Revenue

The increase between 2016/17 and 2020/21 reflects the increasing costs of chief executives, as this revenue relates to the recovery of chief executive salaries. The higher forecast in outyears is reflective of the contingency built into the baseline reflecting the possibility of unplanned expenditure relating to chief executives (mentioned above).

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Leadership of the Public Management System (M66) (A36)

Scope of Appropriation
This appropriation is limited to ensuring the Public Management System has the design, capability and performance to deliver public services, and providing advice and services to support Ministers to discharge their portfolio responsibilities relating to the Public Management System.
Expenses and Revenue
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 38,818 38,818 38,468
Revenue from the Crown 27,580 27,580 27,641
Revenue from Others 11,238 11,238 10,827
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a higher performing public sector through delivery of policy advice and leadership of the public management system by ensuring that the Public Service is collectively responsible and works together, learning what works best and using it to improve performance for customers and having the people, institutions and approach to respond effectively to the needs of New Zealanders today and in the future.

How Performance will be Assessed and End of Year Reporting Requirements
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Technical quality of policy advice papers assessed using the Policy Quality Framework

70% 70% 70%

Minister for the Public Service has satisfaction with policy advice

80% 80% 80%

The Commission works with Public Service chief executives to agree individual development plans

100% of CE's have an agreed development plan 100% of CE's have an agreed development plan 100% of CE's have an agreed development plan

A succession plan is developed for the chief executive position of Public Service agencies

100% of CE positions have a succession plan 100% of CE positions have a succession plan 100% of CE positions have a succession plan

The Kiwis Count trust and confidence survey is run by the Commission with reporting provided yearly that identifies the public's perceptions and experiences of trust and confidence in public services

Annual results are published by 30 June Published by 30 June Annual results are published by 30 June

Respondents in the Kiwis Count trust and confidence survey agree, or strongly agree that, based on their last service experience, they could trust public servants to do what is right

80% 81% 80%

The Commission strengthens Public Service leadership through all Public Service departments being members of the Leadership Development Centre (LDC)

100% membership 100% membership 100% membership

The Commission strengthens Public Service leadership through promoting attendance at the annual Public Service Leaders Summit

At least 500 invitees Achieved At least 500 invitees

The Commission strengthens Public Service leadership by supporting career boards

At least 90 active members 125 active members At least 90 active members

The Commission collects and publishes Public Service workforce data annually

Published no later than 15 December Achieved Published no later than 15 December

The Commission reports the remuneration of all Public Service chief executives every financial year

100% of all CE remuneration published 100% of all CE remuneration published 100% of all CE remuneration published

The Commission meets its statutory requirements for appointment, reappointment and transfer of Public Service chief executives

100% 100% 100%

The Commission, in partnership with the Ministry for Women, supports all Public Service departments to publish their Gender Pay Gap action plans before 31 December 2020

100% of departments publish by 31 December 2020 Achieved Measure removed

The Commission develops and oversees the implementation of the Open Government Partnership (OGP) National Action Plan. A National Action Plan and associated End-of-Term Self Assessment is published in accordance with OGP requirements

Achieved Achieved Achieved

The Commission publishes Official Information Act (OIA) request statistics for government agencies that are subject to the Act every six months within three months of the end of the reporting period or as otherwise agreed with the Office of the Ombudsman

Achieved Achieved Achieved

The Commission recognises the contribution of public servants through the coordination of annual awards and recognition events by recognising and publicising the recipients within one month of the medal's award

100% of recipients recognised within one month Achieved 100% of recipients recognised within one month
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Public Service Commission in the 2021/22 Annual Report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2020/21
Final Budgeted
$000
2021/22
Budget
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
2024/25
Estimated
$000
Delivering on the Public Service Commission's core functions, system leadership and Government expectations 2021/22 - 1,622 1,622 1,622 1,622
Continuing to deliver on the Commission's core functions, system leadership and Government expectations 2022/23 - - 2,000 2,000 2,000
Delivering on the Commission's core functions, system leadership and Government expectations 2019/20 3,000 2,000 - - -
Reasons for Change in Appropriation

This appropriation will decrease by $350,000 in 2021/22 due to:

  • a decrease of $1 million reflecting the funding profile for a previous baseline increase (Delivering on the Commission's core functions, system leadership and Government expectations)
  • a decrease of $455,000 reflecting a one-off transfer in 2020/21 to assist with the recruitment of the next tranche of chief executives
  • a decrease of $411,000 reflecting one-off revenue received from departments and other parties in 2020/21, the largest contributor being external secondments
  • a decrease of $329,000 reflecting a one-off capital to operating transfer to allow the Leadership Development Centre to spend their surplus, and
  • a decrease of $196,000 reflecting the expense transfer from 2019/20 to 2020/21 for the Public Service Census.

These decreases are offset by:

  • an increase of $1.622 million to enable the Commission to deliver on its core functions, system leadership and Government expectations, and
  • an increase of $419,000 due to a transfer in 2020/21 from the Remuneration and Related Employment Costs of Chief Executives appropriation to set up the Pay Equity System Lead function and continue the succession planning for chief executives project.

Supporting Implementation of a Social Wellbeing Approach (M63) (A36)

Scope of Appropriation
This appropriation is limited to providing strategic cross-social-system advice and supporting cross-system work, creating insights, tools, and practices to support sector-wide implementation of a social wellbeing approach.
Expenses and Revenue
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,052 10,546 6,758
Revenue from the Crown 10,797 10,797 6,758
Revenue from Others 255 255 -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of strategic cross-system advice and support, and insights, tools, and practices in order to implement the social wellbeing approach to support and further the long-term wellbeing of New Zealanders.

How Performance will be Assessed and End of Year Reporting Requirements
  2020/21 2021/22
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The satisfaction rating given by the Minister for the quality and timeliness of advice

At least 70% 70% At least 70%

The combined number of agencies and NGOs on-boarded to the Data Exchange will not be less than 80% of the number committed

80% or higher 85% Measure removed

The percentage of key deliverables agreed with the Minister completed in accordance with organisational priorities and agreed standards will be no less than 85%

85% or higher 85% 85% or higher
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Public Service Commission in the 2021/22 Annual Report.

Reasons for Change in Appropriation

This appropriation has decreased by $4.294 million from 2020/21 due to:

  • a decrease of $2.900 million following two expense transfers from 2019/20 to 2020/21 for the Data Exchange and ensuring sufficient resources for strategic cross-sector advice
  • a decrease of $1.327 million reflecting the funding profile for Phase 2 development of the Data Exchange, and
  • a decrease of $255,000 reflecting a one-off increase in 2020/21 received from the Department of Internal Affairs' Innovation Fund.

This is offset by an increase of $188,000 reflecting a one-off operating to capital swap in 2020/21 to allow the Social Wellbeing Agency to refresh their premises.

2.3 - Departmental Capital Expenditure and Capital Injections#

Public Service Commission - Capital Expenditure PLA (M66) (A36)

Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the Public Service Commission, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 788 788 100
Intangibles 400 400 -
Other - - -

Total Appropriation

1,188 1,188 100
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the renewal and replacement of life-expired assets in support of the delivery of the Public Service Commission's services.

How Performance will be Assessed and End of Year Reporting Requirements

Expenditure will be in accordance with the Public Service Commission's capital asset management policy.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Public Service Commission in the 2021/22 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2021/22 reflects cessation of the increase in capital expenditure for the fitout of a new level and refit of the Social Wellbeing Agency's premises that occurred in 2020/21.

Capital Injections and Movements in Departmental Net Assets
Public Service Commission
Details of Net Asset Schedule 2020/21
Estimated Actual
$000
2021/22
Projected
$000
Explanation of Projected Movements in 2021/22
Opening Balance 5,919 6,107  
Capital Injections 188 -  
Capital Withdrawals (329) -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements 329 -  

Closing Balance

6,107 6,107  

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Open Government Partnership (M66) (A36)

Scope of Appropriation
This appropriation is limited to payments associated with New Zealand's membership of the Open Government Partnership.
Expenses
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 200 200 200
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve supporting the delivery of New Zealand's Open Government Partnership commitments.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption has been granted under s.15D(2)(b)(ii) of the Public Finance Act, as additional performance reporting is unlikely to be informative. This appropriation is limited to payments associated with New Zealand's membership to the Open Government Partnership.

Remuneration and Related Employment Costs of Chief Executives (M66) (A36)

Scope of Appropriation
This appropriation is limited to the remuneration and costs relating to the employment of chief executives employed by the Public Service Commissioner.
Expenses
  2020/21 2021/22
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,692 14,901 16,614
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve meeting remuneration and other employment costs for chief executives employed by the Public Service Commissioner, who leads the Public Service.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption has been granted under s.15D(2)(b)(ii) of the Public Finance Act, as additional performance information is unlikely to be informative because this appropriation is solely for the remuneration and costs relating to the employment of chief executives employed by the Public Service Commissioner.