Estimates of appropriations

Vote State Services - Finance and Government Administration Sector - Estimates 2019/20

Vote State Services#

APPROPRIATION MINISTER(S): Minister for Social Development (M63), Minister of State Services (M66)

APPROPRIATION ADMINISTRATOR: State Services Commission

RESPONSIBLE MINISTER FOR STATE SERVICES COMMISSION: Minister of State Services

Overview of the Vote#

The Minister of State Services is responsible for appropriations in Vote State Services for the 2019/20 financial year covering:

  • a total of over $32 million to support decision-making by Ministers on Government policy matters and leading the Public Management System to ensure that the State services are collectively responsible and work together
  • a total of over $16 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
  • a total of $190,000 for departmental capital expenditure for minor furniture and IT replacements, and
  • a total of $7,000 for the settlement of legal liabilities in relation to disestablished government departments and other Crown settlements.

The Minister for Social Development is responsible for appropriations in Vote State Services for the 2019/20 financial year covering:

  • a total of nearly $14 million for identifying where and how to implement a social investment approach, how well it delivers such an approach and providing tools and support to agencies to assist them implement a social investment approach, and to undertake phase two of the Data Exchange project.

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

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2018/19 2019/20
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Designing and Implementing Social Investment (M63)

This appropriation is limited to identifying where and how to implement a social investment approach, assessing how well a social investment approach is being delivered in these areas, and providing tools and support to agencies to assist them in implementing a social investment approach.
15,040 12,378 13,445

Place-based Initiatives - National Support (M63)

This appropriation is limited to providing support and evaluation across place-based initiatives.
450 97 400

Place-based Initiatives - South Auckland Social Investment Board (M66)

This appropriation is limited to the delivery of services as part of the Social Investment Plan for South Auckland and to the operational support of the South Auckland Social Investment Board.
1,000 1,000 -

Total Departmental Output Expenses

16,490 13,475 13,845

Departmental Capital Expenditure

     

State Services Commission - Capital Expenditure PLA (M66)

This appropriation is limited to the purchase or development of assets by and for the use of the State Services Commission, as authorised by section 24(1) of the Public Finance Act 1989.
1,700 1,700 190

Total Departmental Capital Expenditure

1,700 1,700 190

Non-Departmental Other Expenses

     

Open Government Partnership (M66)

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)

This appropriation is limited to the remuneration and costs relating to the employment of chief executives employed by the State Services Commissioner.
16,673 14,364 16,395

Settlement of Legal Liabilities (M66)

The settlement of legal liabilities incurred by now-disestablished government departments and other Crown settlements.
7 - 7

Total Non-Departmental Other Expenses

16,880 14,564 16,602

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Leadership of the Public Sector MCA (M66)

The single overarching purpose of this appropriation is to support decision making by Ministers on Government policy matters and leading the Public Management System.
30,691 29,983 32,150

Departmental Output Expenses

     

Leadership of the Public Management System

This category is limited to ensuring the Public Management System has the design, capability and performance to deliver public services.
24,824 25,398 26,421

Policy Advice

This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to the Public Management System.
5,867 4,585 5,729

Total Multi-Category Expenses and Capital Expenditure

30,691 29,983 32,150

Total Annual Appropriations and Forecast Permanent Appropriations

65,761 59,722 62,787

Capital Injection Authorisations#

  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
State Services Commission - Capital Injection (M66) 1,822 1,822 -

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative Appropriation 2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
An Effective and Timely Crown Response to the Royal Commission of Inquiry into Historical Abuse in Care

Policy Advice and Leadership of the Public Sector MCA (M66)

         
 
  • Policy Advice
- 200 - - -
  Departmental Output Expense          
Leading New Zealand's Public Services to Deliver Transparent, Transformational, and Compassionate Government

Policy Advice and Leadership of the Public Sector MCA (M66)

         
 
  • Leadership of the Public Management System
- 3,000 3,000 2,000 -
  Departmental Output Expense          
Funding for the CE of the Ministry of Housing and Urban Development

Remuneration and Related Employment Costs of Chief Executives (M66)

463 505 505 505 505
  Non-Departmental Output Expense          
Place-Based Initiatives: Progress, Future Direction and Resourcing

Place-based Initiatives - National Support (M63)

200 400 - - -
  Departmental Output Expense          

Total Initiatives

  663 4,105 3,505 2,505 505
Summary of Financial Activity
  2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 9,628 9,628 10,783 15,005 16,490 13,475 13,845 - 13,845 9,585 8,258 8,258
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 12,256 12,815 14,081 14,940 16,880 14,564 - 16,602 16,602 16,352 16,352 16,352
Capital Expenditure 79 161 209 1,553 1,700 1,700 190 - 190 100 100 100
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 28,227 28,244 28,547 30,162 30,691 29,983 32,150 - 32,150 31,819 30,819 28,819
Other Expenses 161 130 - - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

50,351 50,978 53,620 61,660 65,761 59,722 46,185 16,602 62,787 57,856 55,529 53,529

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 12,294 12,710 12,347 14,430 16,674 14,364 N/A 16,146 16,146 15,896 15,896 15,896
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

12,294 12,710 12,347 14,430 16,674 14,364 N/A 16,146 16,146 15,896 15,896 15,896

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

From 2014/15 to 2015/16 output expenses were relatively constant.

The increase in 2016/17 reflected time-limited funding of $1.155 million for a place-based appropriation for the South Auckland Social Investment Board.

The increase in 2017/18 reflects:

  • an increase of $1.690 million for year two funding for a time-limited place-based initiative relating to the South Auckland Social Investment Board
  • an increase of $5.383 million in funding for the Social Investment Agency, mainly due to a drawdown of contingency funding for phase two of the Data Exchange project, and
  • funding for a time-limited place-based initiative administered by the Social Investment Agency totalling $1.220 million for 2017/18 only.

In 2018/19 there is a decrease in output expenses, as there are no longer any time-limited place-based initiatives apart from the commencement of an evaluation. Funding for 2019/20 and outyears reflects the Social Investment Agency's core appropriation and phase two of the Data Exchange programme.

Other Expenses

The increases in actual spend from 2014/15 to 2018/19 reflect the increase in the number of chief executives as a result of the increasing number of agencies.

The budget in 2018/19 and outyears is higher due to a contingency component within the appropriation, allowing for prompt and timely payment of any new unplanned chief executives.

Capital Expenditure

Capital expenditure rose in 2017/18 or the design and implementation of a workspace that supports the new operating model and provides for easy sharing of information and the ability to work in a mobile and flexible way.

Capital expenditure continued at a high level in 2018/19 due to the Commission leaving the Central Agencies Shared Services arrangement and purchasing their own IT hardware and infrastructure.

Budgeted capital expenditure in 2019/20 and outyears reflects the usual levels of forecast capital expenditure.

Multi-Category Output Expenses

From 2014/15 to 2015/16 Multi-Category Output expenses were relatively constant.

The increase in 2017/18 reflects the transition of the Leadership Development Centre functions into the Commission. This increase is ongoing, and is reflected in the budget and estimated actuals for 2018/19.

The majority of the increase in 2019/20 is due to the new funding enabling the Commission to lead New Zealand's public services to deliver transparent, transformational, and compassionate government. This funding decreases in 2021/22 and ends in 2022/23. There is also new funding to enable the Commission to support the Royal Commission of Inquiry into Historical Abuse in Care in 2019/20.

Multi-Category Other Expenses

The decrease in 2016/17 was due to the inquiry into the escape of Phillip Smith being completed and tabled in 2015/16.

Crown Revenue and Capital Receipts
Non-Tax Revenue

The increase in 2017/18 was due to higher recoveries of chief executive salaries as a result of a higher number of agencies (as mentioned above). The high budget in 2018/19 and in outyears is reflective of the contingency built into the appropriation for the possibility of additional chief executives (also mentioned above).

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Designing and Implementing Social Investment (M63)
Scope of Appropriation
This appropriation is limited to identifying where and how to implement a social investment approach, assessing how well a social investment approach is being delivered in these areas, and providing tools and support to agencies to assist them in implementing a social investment approach.
Expenses and Revenue
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,040 12,378 13,445
Revenue from the Crown 15,040 15,040 13,445
Revenue from Others - - -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of tools and infrastructure by the Social Investment Agency required to enable a collective social investment approach allowing investment in what works to improve the lives of New Zealanders, creating lasting change.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
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 NGO's on-boarded to the Data Exchange will not be less than 80% of the number committed

80% or higher 80% 80% or higher

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 State Services Commission in the 2019/20 Annual Report.

Reasons for Change in Appropriation

The $1.595 million decrease in this appropriation for 2019/20 is due to:

  • a one-off expense transfer of $1.442 million from 2017/18, and
  • a one-off transfer of $170,000 from the Ministry of Social Development in 2018/19 due to the Social Investment Agency taking control of The Hub research database.

These decreases are offset by an increase of $17,000 in 2019/20 for Phase 2 Development of the Social Investment Agency Data Exchange.

Place-based Initiatives - National Support (M63)
Scope of Appropriation
This appropriation is limited to providing support and evaluation across place-based initiatives.
Expenses and Revenue
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 450 97 400
Revenue from the Crown 450 450 400
Revenue from Others - - -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the successful implementation and functioning of place-based initiatives to improve outcomes for at-risk children, young people and their families.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The place-based initiatives will report that the support they receive from the national function is contributing to the successful implementation and functioning of the initiatives

Achieved Achieved Measure Removed

The place-based initiatives will attest that the support they receive from the national function assists them in meeting specific monitoring and reporting requirements

Achieved Achieved Measure Removed

The commissioned evaluation is expected to support place-based decisions by June 2020

Achieved Achieved Achieved
End of Year Performance Reporting

Performance information for this appropriation will be reported by the State Services Commission in the 2019/20 Annual Report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Place-Based Initiatives: Progress, Future Direction and Resourcing 2018/19 200 400 - - -
Reasons for Change in Appropriation

The $50,000 decrease in this appropriation is due to a one-off increase of $250,000 in 2018/19. This is offset by an increase of $200,000 in 2019/20 for the evaluation of the South Auckland Social Wellbeing Board and Manaaki Tairawhiti.

2.3 - Departmental Capital Expenditure and Capital Injections#

State Services Commission - Capital Expenditure PLA (M66)
Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the State Services Commission, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 545 545 190
Intangibles 1,155 1,155 -
Other - - -

Total Appropriation

1,700 1,700 190
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 State Services Commission's services.

How Performance will be Assessed and End of Year Reporting Requirements

Expenditure will be in accordance with the State Services Commission's capital asset management policy.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the State Services Commission in the 2019/20 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2019/20 is due to forecast expenditure reverting to its normal level, following a one-off increase in 2018/19 when the Commission exited the Central Agencies Shared Services model and needed to purchase IT equipment and infrastructure.

Capital Injections and Movements in Departmental Net Assets
State Services Commission
Details of Net Asset Schedule 2018/19
Estimated Actual
$000
2019/20
Projected
$000
Explanation of Projected Movements in 2019/20
Opening Balance 3,849 5,671  
Capital Injections 1,822 -  
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

5,671 5,671  

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Open Government Partnership (M66)
Scope of Appropriation
This appropriation is limited to payments associated with New Zealand's membership of the Open Government Partnership.
Expenses
  2018/19 2019/20
  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)
Scope of Appropriation
This appropriation is limited to the remuneration and costs relating to the employment of chief executives employed by the State Services Commissioner.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,673 14,364 16,395
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 State Services 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 State Services Commissioner.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Funding for the CE of the Ministry of Housing and Urban Development 2018/19 463 505 505 505 505
Settlement of Legal Liabilities (M66)
Scope of Appropriation
The settlement of legal liabilities incurred by now-disestablished government departments and other Crown settlements.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7 - 7
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the settlement of potential legal liabilities incurred by disestablished government departments and other Crown settlements.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption has been granted under s.15D(2)(b)(iii) of the PFA, as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

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

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Leadership of the Public Sector (M66)
Overarching Purpose Statement
The single overarching purpose of this appropriation is to support decision making by Ministers on Government policy matters and leading the Public Management System.
Scope of Appropriation
Departmental Output Expenses

Leadership of the Public Management System
This category is limited to ensuring the Public Management System has the design, capability and performance to deliver public services.

Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to the Public Management System.

Expenses, Revenue and Capital Expenditure
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

30,691 29,983 32,150

Departmental Output Expenses

     
Leadership of the Public Management System 24,824 25,398 26,421
Policy Advice 5,867 4,585 5,729

Funding for Departmental Output Expenses

     

Revenue from the Crown

23,902 23,902 26,572
Leadership of the Public Management System 18,035 18,035 20,843
Policy Advice 5,867 5,867 5,729

Revenue from Others

6,789 5,607 5,578
Leadership of the Public Management System 6,789 5,607 5,578
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a higher performing State sector through delivery of policy advice and leadership of the public management system by ensuring that the State services 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 for this Appropriation
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

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

80% 80% 80%

Overall Kiwis Count service quality score

75 points 75 points 75 points
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Leadership of the Public Management System

     

This category is intended to achieve a Public Management System with the design, capability, and performance to deliver public services

     

Complete the National Action Plan End of Term Self-Assessment

100% 100% Measure Removed

Development of a National Action Plan 2018-20 (NAP 3)

100% 100% Measure Removed

SSCs system leadership role in Auckland is acknowledged and supported by government agencies and demonstrated by their presence in the Auckland Policy Office (APO)

Maintaining at least 12 APO government memberships 25 Maintaining at least 12 APO government memberships

State Services Chief Executives agree that the State Services Commission provides the leadership required to support them in their collective leadership and in leading their agencies

Average score of 4 out of 5, or better 4 out of 5 Average score of 4 out of 5, or better

Deployment of senior leaders through Career Boards and brokered with the State Services Commission

100 100 100

Policy Advice

     

This category is intended to achieve providing advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Government policy matters relating to the Public Management System

     

Technical quality of policy advice papers assessed by a survey with a methodical robustness of 90%

70% 70% 70%

Minister of State Services has satisfaction with policy advice

80% 80% 80%

The total cost per hour of producing outputs

$160 $160 $160
End of Year Performance Reporting

Performance information for this appropriation will be reported by the State Services Commission in the 2019/20 Annual Report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
An Effective and Timely Crown Response to the Royal Commission of Inquiry into Historical Abuse in Care 2019/20 - 200 - - -
Leading New Zealand's Public Services to Deliver Transparent, Transformational and Compassionate Government 2019/20 - 3,000 3,000 2,000 -
Reasons for Change in the Appropriation

The $1.459 million increase in this appropriation for 2019/20 due to an increase of $3.350 million, offset by a decrease of $1.751 million.

The $3.350 million increase is due to:

  • $3 million in new funding to support the Commission to lead New Zealand's public services to deliver transparent, transformational, and compassionate government
  • $200,000 in new funding to support the Crown's response to the Royal Commission of Inquiry into Historical Abuse in Care, and
  • $150,000 from a one-off transfer to the Department of Internal Affairs in 2018/19 for the inquiry into the recruitment of the Police Commissioner.

The $1.891 million decrease is due to:

  • $1.202 million reduction in the gross-ups of revenue, largely relating to secondments and the Performance Improvement Framework programme
  • $339,000 for a one-off expense transfer from 2017/18 into 2018/19 for continued work on Diversity and Inclusion and the reform of the State Sector Act
  • $250,000 for a one-off transfer from the Remuneration and Related Employment Costs of Chief Executives appropriation to temporarily employ a chief executive within the Commission, and
  • $100,000 for a one-off transfer from 2017/18 into 2018/19 for chief executive recruitment which was delayed into the 2018/19 period.