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Estimates of appropriations

Vote Serious Fraud - Justice Sector - Estimates 2018/19

Vote Serious Fraud

APPROPRIATION MINISTER(S): Minister of Police (M51)

APPROPRIATION ADMINISTRATOR: Serious Fraud Office

RESPONSIBLE MINISTER FOR SERIOUS FRAUD OFFICE: Minister of Police

Overview of the Vote

The Minister of Police is responsible for appropriations in Vote Serious Fraud for the 2018/19 financial year covering the following:

  • a total of nearly $10 million for detecting, investigating and prosecuting cases of serious financial crime. This includes activities directed at making the commission of financial crimes more difficult, and its detection and prosecution more effective, and
  • a total of $140,000 for the purchase or development of assets and intangibles.

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

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

  2017/18 2018/19
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Investigation and Prosecution of Serious Financial Crime (M51)

This appropriation is limited to detecting, investigating and prosecuting serious financial crimes by the Serious Fraud Office, and includes activities directed at making the commission of financial crimes more difficult, and detection and prosecution more effective.
10,396 10,305 9,614

Total Departmental Output Expenses

10,396 10,305 9,614

Departmental Capital Expenditure

     

Serious Fraud Office - Capital Expenditure PLA (M51)

This appropriation is limited to the purchase or development of assets by and for the use of the Serious Fraud Office, as authorised by section 24(1) of the Public Finance Act 1989.
865 865 140

Total Departmental Capital Expenditure

865 865 140

Total Annual and Permanent Appropriations

11,261 11,170 9,754

Capital Injection Authorisations

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Serious Fraud Office - Capital Injection (M51) 840 840 -

Supporting Information

Part 1 - Vote as a Whole

This part provides trend information for the vote.

1.2 - Trends in the Vote

Summary of Financial Activity

  2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
  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 8,961 8,945 8,853 9,418 10,396 10,305 9,614 - 9,614 9,619 9,619 9,619
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 31 283 204 122 865 865 140 - 140 100 100 140
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

8,992 9,228 9,057 9,540 11,261 11,170 9,754 - 9,754 9,719 9,719 9,759

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 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 year's Summary of Financial Activity table.

1.3 - Analysis of Significant Trends

Total Vote: All Appropriations

Increased Output Expenses in 2016/17 were due to additional personnel costs of $456,000 that included less vacancies across the year and also cover for staff on secondment to other government agencies. Also the biennial International Fraud and Corruption Conference $88,000 was held.

A Budget 2017/18 initiative for a Case and Evidence Management System provided for $730,000 operating and $660,000 capital in 2017/18 with an additional $284,000 operating expenditure in each outyear thereafter. Also a Justice Sector Fund initiative to fund the New Zealand contribution to the International Anti-Corruption Co-ordination Centre (IACCC) provided for $167,000 in 2017/18.

Part 2 - Details of Departmental Appropriations

2.1 - Departmental Output Expenses

Investigation and Prosecution of Serious Financial Crime (M51)

Scope of Appropriation
This appropriation is limited to detecting, investigating and prosecuting serious financial crimes by the Serious Fraud Office, and includes activities directed at making the commission of financial crimes more difficult, and detection and prosecution more effective.
Expenses and Revenue
  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,396 10,305 9,614
Revenue from the Crown 10,142 10,051 9,529
Revenue from Others 254 254 85
What is Intended to be Achieved with this Appropriation

This appropriation is intended to increase business and investor confidence in the integrity of New Zealand's financial markets and increase the public and victims' confidence that those who commit financial crime are held to account in order to achieve the outcome of a confident business environment and a just society that is largely free of serious financial crime.

How Performance will be Assessed and End of Year Reporting Requirements
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Quantity: Number of Part 1 enquiries commenced

30-40 30 30-40

Timeliness: Percentage of enquiries completed within three months

80% 60%-70% 80%

Quantity: Number of Part 2 investigations commenced

14-16 16 14-16

Timeliness: Percentage of Part 2 investigations completed within targeted time (see Note 1)

Cat.A: 50% within 18mths Cat.B: 60% within 12mths Cat.A:15-20% under18mths Cat.B: 30-40% under12mths Cat.A: 50% within 18mths Cat.B: 60% within 12mths

Quality: Percentage of formal post-investigation reviews that meet SFO quality criteria

90% 90% 90%

Quantity: Number of cases brought to prosecution

10-12 9-10 10-12

Quality: Percentage of defendants convicted

80% 80%-100% 80%

Quality: Percentage of formal post-prosecution reviews that meet SFO quality criteria

90% 90% 90%

Note 1 - Category A cases are those that involve high complexity. For example a case that may contain one or more of the following: a significant number of victims, large scale loss or a long period of alleged offending; multiple alleged suspects; inter-agency cooperation; international assistance; legal complexity.

Category B cases are all other cases.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Serious Fraud Office's 2018/19 Annual Report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
Case and Evidence Management System 2017/18 1,390 295 295 295 295
New Zealand contribution to the International Anti-Corruption Co-ordination Centre (IACCC) initiative 2017/18 167 - - - -
Share of costs for Budget 2015 whole-of-government initiatives 2015/16 (15) (15) (15) (15) (15)
'Right Sizing' The Serious Fraud Office 2015/16 2,030 2,030 2,030 2,030 2,030
Reasons for Change in Appropriation

The decrease in this appropriation for 2018/19 is due to the reduction in funding for the Case and Evidence Management System to the base operating level, and the expected reduced contribution to the International Anti-Corruption Co-ordination Centre (IACCC).

2.3 - Departmental Capital Expenditure and Capital Injections

Serious Fraud Office - Capital Expenditure PLA (M51)

Scope of Appropriation

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

Capital Expenditure

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 126 126 130
Intangibles 739 739 10
Other - - -

Total Appropriation

865 865 140

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure that assets and intangibles required to support the delivery of the SFO's services are routinely renewed and maintained. Expenditure is in accordance with the SFO's capital expenditure plan.

How Performance will be Assessed and End of Year Reporting Requirements

  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The capital plan developed and managed throughout year

Capital plan for implementation by 30 June 2017 Completed by 30 June 2017 Capital plan for implementation by 30 June 2018

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Serious Fraud Office's 2018/19 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2018/19 is due to a return to the base level of expected capital expenditure after increased spending in the previous year on implementing the new Case and Evidence Management System.

Capital Injections and Movements in Departmental Net Assets

Serious Fraud Office

Details of Net Asset Schedule 2017/18
Estimated Actual
$000
2018/19
Projected
$000
Explanation of Projected Movements in 2018/19
Opening Balance 452 1,112  
Capital Injections 840 - A Case and Evidence Management System
Capital Withdrawals (180) - Capital to operating swap
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

1,112 1,112  
Last updated: 
Thursday, 17 May 2018