Formats and related files
Vote Serious Fraud#
APPROPRIATION MINISTER(S): Minister of Police (M51)
DEPARTMENT ADMINISTERING THE VOTE: Serious Fraud Office (A37)
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 2021/22 financial year covering the following:
- a total of just over $14 million for preventing, detecting, investigating and prosecuting cases of serious financial crime, including corruption. This includes activities directed at making the commission of financial crimes more difficult, and its detection and prosecution more effective.
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 |
|||
|
Prevention, Investigation and Prosecution of Serious Financial Crime (M51) (A37) This appropriation is limited to preventing, detecting, investigating and prosecuting serious financial crimes by the Serious Fraud Office. |
13,850 | 13,850 | 14,011 |
|
Total Departmental Output Expenses |
13,850 | 13,850 | 14,011 |
|
Departmental Capital Expenditure |
|||
|
Serious Fraud Office - Capital Expenditure PLA (M51) (A37) 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. |
307 | 307 | 140 |
|
Total Departmental Capital Expenditure |
307 | 307 | 140 |
|
Total Annual Appropriations and Forecast Permanent Appropriations |
14,157 | 14,157 | 14,151 |
Capital Injection Authorisations#
| 2020/21 | 2021/22 | ||
|---|---|---|---|
| Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
| Serious Fraud Office - Capital Injection (M51) (A37) | 207 | 207 | - |
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 |
|---|---|---|---|---|---|---|
| Strengthening the Response to COVID-19 Related Serious Financial Crime | Prevention, Investigation and Prosecution of Serious Financial Crime (M51) | 940 | 1,450 | 1,480 | - | - |
| Total Initiatives | 904 | 1,450 | 1,480 | - | - |
1.2 - Trends in the Vote#
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 | 9,418 | 10,099 | 10,185 | 9,690 | 13,850 | 13,850 | 14,011 | - | 14,011 | 13,521 | 12,128 | 12,128 |
| Benefits or Related Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
| Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | 122 | 825 | 205 | 146 | 307 | 307 | 140 | - | 140 | 140 | 140 | 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 |
9,540 | 10,924 | 10,390 | 9,836 | 14,157 | 14,157 | 14,151 | - | 14,151 | 13,661 | 12,268 | 12,268 |
|
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's information in the Summary of Financial Activity.
1.3 - Analysis of Significant Trends#
Total Vote: All Appropriations
Increased Output expenses in 2017/18 were due to the development and introduction of a new Case and Evidence Management System where the Serious Fraud Office (SFO) received $730,000 operating and $660,000 capital, with an additional $284,000 operating budget in each outyear thereafter.
Additional expenditure of $490,000 in 2018/19 was due to the implementation of a national Anti-Corruption Work Programme. The SFO hosted the biennial Fraud and Corruption Conference and an Economic Crime Agencies Network meeting with a combined cost of $133,000. The New Zealand contribution to the International Anti-Corruption Co-ordination Centre (IACCC) cost $91,000. Other items of additional expenditure included assistance to the Vanuatu Office of Public Prosecutors and provision of a multi-agency Electronic Forensic Investigator.
In 2019/20, multi-agency commitments to an initial national Anti-Corruption Work Programme continued and a multi-agency funded Electronic Forensic Investigation service was continued. Assistance was provided to the Vanuatu Office of Public Prosecutors.
An increase in expenditure from 2020/21 of $2.320 million is enabling the SFO to meet existing demand for increasingly complex financial crime investigations and to facilitate organisational resilience. The national Anti-Corruption Work Programme (phase 2) started in 2020/21 and will conclude in 2021/22 at a cost of less than $800,000 per annum. The SFO has been funded from the COVID-19 Response and Recovery Fund (CRRF) Foundational Package to lead prevention activities in the public sector to reduce losses due to fraud and corruption in COVID-19 recovery activities. Additional expenditure from the CRRF will respond to the expected increase in serious and complex financial crime following the COVID-19 pandemic related economic downturn. This capability is planned to be retained to 2022/23 at a cost of $940,000 in 2020/21 and less than $1.500 million in each following year.
Part 2 - Details of Departmental Appropriations#
2.1 - Departmental Output Expenses#
Prevention, Investigation and Prosecution of Serious Financial Crime (M51) (A37)
Scope of Appropriation
Expenses and Revenue
| 2020/21 | 2021/22 | ||
|---|---|---|---|
| Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
| Total Appropriation | 13,850 | 13,850 | 14,011 |
| Revenue from the Crown | 13,536 | 13,536 | 13,926 |
| Revenue from Others | 314 | 314 | 85 |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to ensure that financial crime and corruption is addressed through prevention, detection, investigation and prosecution; a high level of trust in New Zealand's public institutions and financial system is maintained; and New Zealand's international reputation in the fight against financial crime and corruption is maintained.
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 |
|
Timeliness: Percentage of complaints evaluated within 30 working days |
80% | 90%-95% | 80% |
|
Quantity: Number of Part 1 enquiries commenced |
28-32 | 26-30 | 28-32 |
|
Timeliness: Percentage of enquiries completed within three months |
80% | 50%-70% | 80% |
|
Quantity: Number of Part 2 investigations commenced |
10-14 | 10-12 | 10-14 |
|
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:50-60% under 18mths Cat.B:40-60% 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 |
8-10 | 7-9 | 8-10 |
|
Quality: Percentage of defendants convicted |
80% | 100% | 80% |
|
Quality: Percentage of formal post-prosecution reviews that meet SFO quality criteria |
90% | 90% | 90% |
|
Quantity: Number of prevention publications or guidelines published (see note 2) |
New measure | New measure | 6-8 |
Note 1 - Category A cases are those that involve high complexity. For example, a case that may contain one or all 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.
Note 2 - A Strategy and Prevention team was established in September 2020 to undertake counter-fraud and corruption activities. Prevention publications or guidelines are published or circulated primarily to government agencies, but also more widely.
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Serious Fraud Office's 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 |
|---|---|---|---|---|---|---|
| Strengthening the Response to COVID-19 Related Serious Financial Crime | 2020/21 | 940 | 1,450 | 1,480 | - | - |
| Protecting New Zealand as a Safe Place to do Business | 2020/21 | 2,320 | 2,376 | 2,435 | 2,522 | 2,522 |
| Anti-corruption Work Programme | 2018/19 | 570 | 579 | - | - | - |
| Case and Evidence Management System | 2017/18 | 295 | 295 | 295 | 295 | 295 |
2.3 - Departmental Capital Expenditure and Capital Injections#
Serious Fraud Office - Capital Expenditure PLA (M51) (A37)
Scope of Appropriation
Capital Expenditure
| 2020/21 | 2021/22 | ||
|---|---|---|---|
| Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
| Forests/Agricultural | - | - | - |
| Land | - | - | - |
| Property, Plant and Equipment | 245 | 245 | 120 |
| Intangibles | 62 | 62 | 20 |
| Other | - | - | - |
|
Total Appropriation |
307 | 307 | 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 Serious Fraud Office'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
| 2020/21 | 2021/22 | ||
|---|---|---|---|
| Assessment of Performance | Final Budgeted Standard |
Estimated Actual |
Budget Standard |
|
The capital plan developed and managed throughout year |
Capital plan for implementation by 1 July 2020 | Completed by 1 July 2020 | Capital plan for implementation by 1 July 2021 |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Serious Fraud Office's 2022 Annual Report that will cover the 2021/22 financial year.
Reasons for Change in Appropriation
The decrease to this appropriation for 2021/22 is mainly due to the return to a normal level of capital expenditure following a one-off increased level of expenditure in 2020/21 for additional IT infrastructure and forensics tools to meet existing demand for increasingly complex financial crime investigations.
Capital Injections and Movements in Departmental Net Assets
Serious Fraud Office
| Details of Net Asset Schedule | 2020/21 Estimated Actual $000 |
2021/22 Projected $000 |
Explanation of Projected Movements in 2021/22 |
|---|---|---|---|
| Opening Balance | 1,112 | 1,319 | |
| Capital Injections | 207 | - | Purchase of additional equipment to meet existing demand for increasingly complex financial crime investigations in 2020/21 |
| Capital Withdrawals | - | - | |
| Surplus to be Retained (Deficit Incurred) | - | - | |
| Other Movements | - | - | |
|
Closing Balance |
1,319 | 1,319 |