Estimates of appropriations

Vote Women's Affairs - Māori, Other Populations and Cultural - Estimates 2014/2015

APPROPRIATION MINISTER(S): Minister of Women's Affairs (M76)

APPROPRIATION ADMINISTRATOR: Ministry of Women's Affairs

RESPONSIBLE MINISTER FOR MINISTRY OF WOMEN'S AFFAIRS: Minister of Women's Affairs

Summary of the Vote#

Overview#

The Minister of Women's Affairs is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:

  • providing effective policy advice to support decision-making by Ministers on government policy matters relating to improving outcomes for women, including managing New Zealand's international obligations with respect to the status of women ($3.615 million)
  • providing suitable women nominees for appointment to state sector boards and committees ($460,000)
  • providing administrative, advisory and research support for the National Advisory Council on the Employment of Women ($200,000)
  • providing support services to the Vote Minister ($355,000)
  • departmental capital expenditure ($317,000).

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

Estimates of Appropriations#

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations

  2013/14 2014/15
Titles and Scopes of Appropriations by Appropriation Type Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Policy Advice and Nomination Services MCOA (M76)

4,906 4,906 -
Ministerial Services
This output class is limited to the provision of services to the Vote Minister to enable her/him to discharge her/his portfolio responsibilities.
355 355 -
National Advisory Council on the Employment of Women
This output class is limited to the provision of administrative, advisory and research support for the National Advisory Council on the Employment of Women.
200 200 -
Nomination Services
This output class is limited to the provision of suitable women nominees for appointment to state sector boards and committees.
460 460 -
Policy Advice
This output class 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 improving outcomes for women in New Zealand.
3,891 3,891 -

Total Departmental Output Expenses

4,906 4,906 -

Departmental Capital Expenditure

     

Ministry of Women's Affairs - Capital Expenditure PLA (M76)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Women's Affairs, as authorised by section 24(1) of the Public Finance Act 1989.
97 97 317

Total Departmental Capital Expenditure

97 97 317

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Nomination Services MCA (M76)

The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
- - 4,630
Departmental Output Expenses
     
Ministerial Services
This category is limited to the provision of services to the Vote Minister to enable her/him to discharge her/his portfolio responsibilities.
- - 355
National Advisory Council on the Employment of Women
This category is limited to the provision of administrative, advisory and research support for the National Advisory Council on the Employment of Women.
- - 200
Nomination Services
This category is limited to the provision of suitable women nominees for appointment to state sector boards and committees.
- - 460
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 improving outcomes for women in New Zealand.
- - 3,615

Total Multi-Category Expenses and Capital Expenditure

- - 4,630

Total Annual and Permanent Appropriations

5,003 5,003 4,947

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
  2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
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 - - - - - - - - - - - -
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 117 29 24 50 97 97 317 - 317 47 47 47
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses
4,787 4,717 4,518 4,572 4,906 4,906 4,630 - 4,630 4,630 4,630 4,630
Other Expenses
- - - - - - - - - - - -
Capital Expenditure
- - - - - - N/A - - - - -

Total Appropriations

4,904 4,746 4,542 4,622 5,003 5,003 4,947 - 4,947 4,677 4,677 4,677

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.

Adjustments to the Summary of Financial Activity table due to Vote Restructuring
  2009/10
Adjustments
$000
2010/11
Adjustments
$000
2011/12
Adjustments
$000
2012/13
Adjustments
$000
2013/14
Budgeted
Adjustments
$000
2013/14
Estimated
Actual
Adjustments
$000

Appropriations

           
Output Expenses (4,787) (4,717) (4,518) (4,572) (4,906) (4,906)
Benefits or Related Expenses - - - - - -
Borrowing Expenses - - - - - -
Other Expenses - - - - - -
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
Output Expenses 4,787 4,717 4,518 4,572 4,906 4,906
Other Expenses - - - - - -
Capital Expenditure - - - - - -

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts

- - - - - -

As a consequence of the 2013 Amendment to the Public Finance Act, Multi Class Output Expense Appropriations were converted to Multi-Category Appropriations.

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote Structure.

1.3 - Analysis of Significant Trends

Capital Expenditure

The Ministry is not a capital intensive agency. Capital expenditure is primarily for the routine replacement and upgrade of the Ministry's information technology and office equipment.

In 2009/10 significant work was undertaken on the Ministry's knowledge management system.

In 2013/14 the Ministry planned to move premises ahead of its lease expiration. It is likely that the fit-out construction work will be partially completed in 2013/14 and that the remainder of the work will be completed in 2014/15.

Multi-Category Output Expenses

From 2009/10 the Ministry's baseline increased to do more in-depth work relating to improved economic outcomes for women ($500,000 per year). In 2009/10 special project funding was also received for a pilot study on healthy sexuality, respectful relating and resilience in young people ($153,000).

In 2010/11 funds were brought forward from the next three years to fund the possible one-off costs of implementing a review of the Ministry's administrative and support services ($300,000). Funds not required for the implementation of the review were transferred back to 2011/12 ($81,000), 2012/13 ($100,000) and 2013/14 ($100,000).

In 2012/13 funds were transferred to 2013/14 to enable the Ministry to move premises ahead of its lease expiration ($180,000).

From 1 July 2012 funding for the National Advisory Council on the Employment of Women was transferred to Vote Women's Affairs from Vote Labour ($250,000 in 2012/13 and $200,000 in 2013/14 and out-years).

1.4 - Reconciliation of Changes in Appropriation Structure

    Old Structure New Structure
2013/14 Appropriations
in the 2013/14 Structure
2013/14
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2013/14 Appropriations
in the 2014/15 Structure
2013/14
(Restated)
$000
2014/15
$000

Departmental Output Expenses

           
Policy Advice and Nomination Services MCOA 4,906 Transferred from Policy Advice and Nomination Services MCOA 4,906 Transferred to Policy Advice and Nomination Services MCA 4,906 4,630
Total Changes in Appropriations 4,906   4,906   4,906 4,630

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

Part 2 - Details of Departmental Appropriations#

2.3 - Departmental Capital Expenditure and Capital Injections

Ministry of Women's Affairs - Capital Expenditure PLA (M76)
Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Women's Affairs, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 92 92 312
Intangibles 5 5 5
Other - - -

Total Appropriation

97 97 317
What is Intended to be Achieved with this Appropriation

This appropriation is intended to enable the Ministry to move premises and achieve the routine replacement and upgrade of office equipment and information technology to efficiently deliver Ministry services.

How Performance will be Assessed and End of Year Reporting Requirements
  2013/14 2014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Expenditure is in accordance with the Ministry's intention to move premises and routinely replace its office equipment and information technology. 97 97 317
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Women's Affairs in its 2014/15 Annual Report.

Reasons for Change in Appropriation

The increase in this appropriation for 2014/15 is a result of delays in the Ministry moving premises. It is likely that the fit-out construction work will be partially completed in 2013/14 and that the remainder of the work will be completed in 2014/15.

Capital Injections and Movements in Departmental Net Assets
Ministry of Women's Affairs
Details of Net Asset Schedule 2013/14
Estimated Actual
$000
2014/15
Projected
$000
Explanation of Projected Movements in 2014/15
Opening Balance 336 336  
Capital Injections - -  
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

336 336  

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

Multi-Category Expenses and Capital Expenditure

Policy Advice and Nomination Services (M76)
Overarching Purpose Statement
The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
Scope of Appropriation
Departmental Output Expenses

Ministerial Services
This category is limited to the provision of services to the Vote Minister to enable her/him to discharge her/his portfolio responsibilities.

National Advisory Council on the Employment of Women
This category is limited to the provision of administrative, advisory and research support for the National Advisory Council on the Employment of Women.

Nomination Services
This category is limited to the provision of suitable women nominees for appointment to state sector boards and committees.

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 improving outcomes for women in New Zealand.

Expenses, Revenue and Capital Expenditure
  2013/14 2014/15
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 4,630

Departmental Output Expenses

     
Ministerial Services - - 355
National Advisory Council on the Employment of Women - - 200
Nomination Services - - 460
Policy Advice - - 3,615

Funding for Departmental Output Expenses

     

Revenue from the Crown

- - 4,616
Ministerial Services - - 355
National Advisory Council on the Employment of Women - - 200
Nomination Services - - 460
Policy Advice - - 3,601

Revenue from Others

- - 14
Ministerial Services - - -
National Advisory Council on the Employment of Women - - -
Nomination Services - - -
Policy Advice - - 14
Comparators for Restructured Appropriation
  2013/14 2014/15
Vote, Type and Title of Appropriation Budgeted
$000
Estimated Actual
$000
Budget
$000

Vote Women's Affairs - MCOA to MCA

     

Departmental Output Expenses

     
Ministerial Services 355 355 355
National Advisory Council on the Employment of Women 200 200 200
Nomination Services 460 460 460
Policy Advice 3,891 3,891 3,615
Total 4,906 4,906 4,630

The previous MCOA Policy Advice and Nomination Services has been converted to an MCA.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved outcomes for women in New Zealand. This is not only important for women but as an investment in New Zealand's future prosperity and well-being:

  • Increased opportunities for women to contribute to the workforce to the full extent of their skills and abilities will assist New Zealand to further develop a productive and competitive economy.
  • Greater participation in paid employment improves outcomes for women and their families, decreases benefit dependence, and increases productivity.
  • Greater diversity in governance and leadership roles correlates with better decision making and organisational performance with consequent economic gains.
  • Reducing the burden of violence on women will increase women's safety and reduce the social and economic cost of violence.

The Ministry does this by focussing on specific areas, within the wider Government targets, where it can best contribute by providing evidence and advice to influence key decision makers to generate the greatest change for New Zealand women.

How Performance will be Assessed for this Appropriation
  2013/14 2014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Policy Advice and Nomination Services

     
The performance of the MCA as a whole will be assessed by the satisfaction of key stakeholders with the quality of policy advice, as rated on an annual basis. Rated as 'meeting requirements' or better Rated as 'meeting requirements' or better Rated as 'meeting requirements' or better
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2013/14 2014/15
Assessment of Performance Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Policy Advice and Nomination Services

     

Departmental Output Expenses

     
Ministerial Services
     
This category is intended to achieve the provision of high quality and timely advice to enable the Vote Minister to discharge their portfolio responsibilities.      
Performance of this category will be assessed by the level of satisfaction of the Vote Minister with the ministerial support services provided to them, as rated on a quarterly basis. Rated as 'meeting requirements' or better Rated as 'meeting requirements' or better Rated as 'meeting requirements' or better
National Advisory Council on the Employment of Women
     
This category is intended to achieve the provision of high quality and timely administrative, advisory and research support for the National Advisory Council on the Employment of Women.      
Performance of this category will be assessed by the level of satisfaction of council members with the administrative, advisory and research support services provided to them, as rated on an annual basis. Rated as 'meeting requirements' or better Rated as 'meeting requirements' or better Rated as 'meeting requirements' or better
Nomination Services
     
This category is intended to achieve the timely provision of suitable women nominees for appointment to state sector boards and committees.      
Performance of this category will be assessed by the level of satisfaction of key appointing agencies with the quality of nominees and nomination services provided to them, as rated on an annual basis. Rated as 'meeting requirements' or better Rated as 'meeting requirements' or better Rated as 'meeting requirements' or better
Performance of this category will be assessed by the timeliness of the nominations service using the percentage of responses to nomination requests provided by the due date. 100% 100% 100%
Policy Advice
     
This category is intended to achieve the provision of effective policy advice to improve outcomes for women in New Zealand.      
Performance of this category will be assessed using the three common performance indicators for policy appropriations as agreed by Cabinet:      
Technical quality assessment score using a survey with a methodical robustness of 82.5%. 80% or better 80% or better 80% or better
Ministerial satisfaction score using the common satisfaction survey for policy advice. 80% or better 80% or better 80% or better
Total cost per output hour. Between $100 and $120 Between $100 and $120 Between $100 and $120
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Women's Affairs in its 2014/15 Annual Report.

Reasons for Change in Appropriations

The decrease in this appropriation for 2014/15 is mainly due to an expense transfer to 2013/14 to enable the Ministry to move premises ahead of its lease expiration ($180,000) and departmental contributions received for staff on secondment in 2013/14 ($93,000).

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.

Information No Longer in the Estimates of Appropriations#

Following recent amendments to the Public Finance Act 1989 (PFA), and subsequent changes to the format and content of the Estimates, the following information is no longer in the Estimates:

 
Content Where to find this information
The Summary Tables The Summary tables which provide a high-level perspective and comparative “ready reference” for all appropriations (annual, permanent and MYAs) are available online: www.treasury.govt.nz/budget/2014/summarytables/estimates
Forecast financial statements Departments' forecast financial statements will be presented to the House as part of each department's annual report for the previous financial year.
Statements of forecast service performance Departmental statements of forecast service performance are no longer needed in the information supporting the Estimates, as end-of-year reporting on what has been achieved with each appropriation will be directly against each appropriation rather than in a statement of service performance.
Statements of intent Departmental statements of intent are no longer bolted on to the relevant sector volume of the Estimates. Each department's most recent strategic intentions must be available on the department's website, and must be presented to the House of Representatives no later than when the annual report for the previous financial year is presented, possibly in the same document as the annual report or grouped with those of other agencies in a sector.

How the Estimates of Appropriations are Organised#

The Estimates of Appropriations are 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, where 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.

There are 54 Votes for 2014/15 as:

  • Vote Economic Development and Vote Employment have been combined into Vote Economic Development and Employment
  • Vote Commerce and Vote Consumer Affairs have been combined into Vote Commerce and Consumer Affairs, and
  • Vote Veterans' Affairs - Social Development has been merged into Vote Social Development.

The table below shows the Votes by Sector and which departments are in each sector.

Votes in Each Sector#

Votes by Sector Department Administering Vote(s)

Economic Development and Infrastructure Sector - B.5 Vol.1

 
Vote Economic Development and Employment Ministry of Business, Innovation and Employment
Vote ACC  
Vote Commerce and Consumer Affairs  
Vote Communications  
Vote Energy  
Vote Immigration  
Vote Labour  
Vote Tourism  
Vote Canterbury Earthquake Recovery Canterbury Earthquake Recovery Authority
Vote Transport Ministry of Transport

Education and Science Sector - B.5 Vol.2

 
Vote Education Ministry of Education

Vote Tertiary Education

 
Vote Education Review Office Education Review Office
Vote Science and Innovation Ministry of Business, Innovation and Employment

Environment Sector - B.5 Vol.3

 
Vote Environment Ministry for the Environment
Vote Conservation Department of Conservation
Vote Parliamentary Commissioner for the Environment Parliamentary Commissioner for the Environment

External Sector - B.5 Vol.4

 
Vote Foreign Affairs and Trade Ministry of Foreign Affairs and Trade
Vote Official Development Assistance  
Vote Defence Ministry of Defence
Vote Defence Force New Zealand Defence Force
Vote Customs New Zealand Customs Service

Finance and Government Administration Sector - B.5 Vol.5

 
Vote Prime Minister and Cabinet Department of the Prime Minister and Cabinet
Vote Communications Security and Intelligence Government Communications Security Bureau
Vote Security Intelligence New Zealand Security Intelligence Service
Vote State Services State Services Commission
Vote Finance The Treasury
Vote Revenue Inland Revenue Department
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Parliamentary Service Parliamentary Service
Vote Audit Controller and Auditor-General
Vote Ombudsmen Office of the Ombudsmen

Health Sector - B.5 Vol.6

 
Vote Health Ministry of Health

Justice Sector - B.5 Vol.7

 
Vote Justice Ministry of Justice
Vote Courts  
Vote Corrections Department of Corrections
Vote Police New Zealand Police
Vote Serious Fraud Serious Fraud Office
Vote Attorney-General Crown Law Office
Vote Parliamentary Counsel Parliamentary Counsel Office

Māori, Other Populations and Cultural Sector - B.5 Vol.8

 
Vote Māori Affairs Te Puni Kōkiri
Vote Treaty Negotiations Ministry of Justice
Vote Pacific Island Affairs Ministry of Pacific Island Affairs
Vote Women's Affairs Ministry of Women's Affairs
Vote Statistics Statistics New Zealand
Vote Internal Affairs Department of Internal Affairs
Vote Arts, Culture and Heritage Ministry for Culture and Heritage
Vote Sport and Recreation  

Primary Sector - B.5 Vol.9

 
Vote Primary Industries Ministry for Primary Industries
Vote Food Safety  
Vote Lands Land Information New Zealand

Social Development and Housing Sector - B.5 Vol.10

 
Vote Social Development Ministry of Social Development
Vote Senior Citizens  
Vote Housing Ministry of Business, Innovation and Employment

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 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. 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.

Appropriation Type Transaction Status Description
Output Expenses Departmental Authorises expenses to be incurred by a department or an Office of Parliament in supplying a specified category of outputs (goods and services).
  Non-Departmental Authorises expenses to be incurred by the Crown (excluding departments) in purchasing a specified category of outputs (goods and services) from Crown entities or other third parties.
Benefits or Related Expenses Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) in transferring resources (generally to individuals for their personal benefit) for which the Crown receives nothing directly in return. (Prior to 1 July 2014, this appropriation type was called Benefits and other Unrequited Expenses.)

Examples include Job Seeker Support and Emergency Benefit, Student Allowances and various scholarships and awards.

Borrowing Expenses Departmental

Authorises the incurring of interest or other financing expenses for loans made to a department or an Office of Parliament, or public securities (undertakings that represent part of the public debt) issued by a department or an Office of Parliament.

In practice, limitations on the rights of departments to borrow or issue securities and limitations on how Offices of Parliament can be funded mean that this type of appropriation is unlikely to be used.

  Non-Departmental

Authorises the incurring of interest or other financing expenses for loans made to the Crown (excluding departments), or public securities (undertakings that represent part of the public debt) issued by the Crown.

Crown debt management is centralised, which means that most debt-servicing expenses appear in Vote Finance.

Other Expenses Departmental

Authorises expenses to be incurred by a department or an Office of Parliament that are not either output expenses or borrowing expenses.

Other expenses should be used only for events that cannot be related back to output production, such as redundancy costs arising from a government decision to cease purchasing certain types of outputs, or a loss on sale of assets made surplus by departmental restructuring.

  Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) that are not structured or managed as output expenses, benefits or related expenses, or borrowing expenses.

Other expenses is the residual appropriation type, which should not be used where an appropriation could be better classified or managed as one of the other appropriation types (eg, as output expenses).

Examples include disposal of an asset for less than market value, grants to community organisations, subscriptions for membership of international bodies and remuneration of independent statutory officers.

Capital expenditure Departmental Authorises capital expenditure to be incurred by a department or an Office of Parliament to acquire or develop assets for the use of the department.
  Non-Departmental Authorises capital expenditure to be incurred by the Crown (excluding departments) to acquire or develop Crown assets, including the purchase of equity, or making a loan to a person or organisation that is not a department.
Expenses or Capital expenditure Incurred by an Intelligence and Security Department Departmental Authorises both expenses and capital expenditure to be incurred by the New Zealand Security Intelligence Service or the Government Communications Security Bureau.
Multi-Category Appropriations Departmental or
Non-Departmental
Allows separate categories of departmental output expenses, non-departmental output expenses, departmental other expenses, non-departmental other expenses, or non-departmental capital expenditure to be grouped together in one appropriation provided all the categories contribute to a single overarching purpose.

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.

Output Expense Appropriations Type and Authority Description, Constraints on Form and Typical Application

Standard Output Expense Appropriations

(section 7A(1)(a), Public Finance Act 1989)

Departmental or non-departmental:  Authorise a department or an Office of Parliament to incur expenses in supplying a specified category of outputs (goods and services), or the Crown (excluding departments) to incur expenses to purchase a specified category of outputs.

Annual or multi-year:  The authority lapses at the end of the financial year or multi-year period specified.

Single category of output expenses only:  The scope is limited to a single category of outputs (a grouping of similar or related outputs).

Amount limited by Appropriation Act: The amount of a standard output expense appropriation is limited to a set amount of NZ dollars specified in an Appropriation Act.

Typical application:  The normal or default form for an output expense appropriation, used for a wide range of outputs for which the flexibility offered by a multi-category appropriation is not required.

Revenue-Dependent Appropriations (RDA)

(section 21(1), Public Finance Act 1989)

Departmental only:  Authorise a department or an Office of Parliament to incur expenses in supplying a specified category of outputs (goods and services) that are not paid for directly by the Crown.

A proposed RDA must be approved by the Minister of Finance, before it is presented in the Estimates.  Each category of outputs for which an RDA is approved is listed in an Appropriation Act for the relevant financial year.

Annual only:  The authority lapses at the end of the financial year specified.

Single category of output expenses only:  The scope of an RDA is limited to a single category of outputs (a grouping of similar or related outputs).

Amount limited by amount of revenue earned:  The amount of an RDA is limited tothe amount of revenue earned by a department or an Office of Parliament from other departments or from parties other than the Crown during a financial year.  The Minister of Finance can further direct a department to incur expenses to a level lower than the amount of revenue earned, though such directions have been rare.

Typical application:  An RDA provides flexibility to respond to unanticipated changes in the level of external demand for a category of outputs, where the full cost of the outputs is met by external parties and not the Crown.

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:

Crown Revenue Type Transaction Status Description
Tax Revenue Non-Departmental Tax payable to the Crown, such as Income Tax, GST and Fringe Benefit Tax
Non-Tax Revenue Non-Departmental Revenue earned by the Crown from its investing and other operating activities.  Examples include interest income, capital charges and dividends from State-owned enterprises.
Capital Receipts Non-Departmental

Capital received by the Crown:

  • when loans are raised (which appear in Vote Finance) or repayments of principal are made on debts owed to the Crown (for example, in Vote Social Development), or
  • when capital assets are sold.

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.

Movement Type Description
Capital injections Investment by the Crown in a department, which increases the department's closing net asset balance.
Capital withdrawals Returns of capital by a department to the Crown, which reduce the department's closing net asset balance.
Surplus to be retained/(Deficit incurred) The net surplus forecast to be retained by a department from its operations for a financial year in accordance with section 22(1) of the PFA, or the forecast deficit for the department.  A surplus or deficit will, respectively, increase or decrease the department's closing net asset balance.
Other movements This section is for any other movements that will affect the increases the department's net asset balance. For example movements in asset revaluation reserves.

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.

Title page The title page specifies the appropriation Minister(s) responsible for existing and proposed appropriations in the Vote, the appropriation administrator, and the responsible Minister for the department.
Summary A plain-language overview of the focus of the appropriations in the Vote.
Details of each appropriation and capital injections

One or more tables containing information on each appropriation in a Vote:

Annual and Permanent Appropriations - The title, scope, and amount of each annual and permanent appropriation, the title and single overarching purpose of each multi-category appropriation and the title, scope and forecast amount of each category within a multi-category appropriation.  The annual amounts for which parliamentary authority is sought in the Appropriation (2014/15 Estimates) Bill appear in bold type. As permanent appropriations have already been approved by Parliament, their amounts are forecasts, not a limit, so are not shown in bold type.

Multi-Year Appropriations - The type, title, scope and amount of each MYA , including any adjustments since originally appropriated, amounts incurred or estimated for particular years, and the estimated remaining balance.

Capital Injection Authorisations - The name of the department seeking the additional capital. The amount for which parliamentary authority is sought in the Appropriation (2014/15 Estimates) Bill appears in bold type.

Supporting information

 
Part 1 - Vote as a Whole

Part 1.1 New Policy initiatives - A table showing how new initiatives (if any) and the associated expenses or capital expenditure are allocated to appropriations in the Vote. References are included where appropriations in other Votes are affected by the same initiative.

Part 1.2 Trends in the Vote- A presentation of the actual and estimated trends in the Vote:

Summary of Financial Activity - A table showing financial information for the Vote over the preceding five years (actual, budgeted or estimated actual), the current year (Budget) and the following three years (estimated) for each type of appropriation and Crown revenue and capital receipts.  Where Votes have been combined or separated, appropriations have been moved into/out of a Vote, or where categories of expenses or capital expenditure have been moved into/out of a multi-category appropriation, to the extent practicable the information in the table is restated as if these adjustments had occurred before the beginning of the current year.

Adjustments to the Summary of Financial Activity - A table showing any restated adjustments made to the preceding five years of the Summary of Financial Activity table. Where no restatement has occurred, a statement to this effect is inserted under this sub-heading.

Part 1.3  Analysis of Significant Trends - High-level analysis of appropriations and Crown revenue and capital receipts by type over the nine financial years covered by the Summary of Financial Activity table, explanations of significant changes and may also contain graphical presentations.

Part 1.4 Reconciliation of Changes in Appropriation Structure - a table providing a reconciliation and explanation of any changes in the structure or classification of appropriations (and categories within MCAs) made in the Budget year to facilitate traceability of expenditure between financial years.

Part 1.5 Relationship between individual Appropriations and the Work Programme - An optional table to be used when the relationship between individual Appropriations and the Work Programmeis not readily apparent from the information provided elsewhere in the supporting information.

Guide to Reading the Estimates of Appropriations (continued)#

Parts 2-4 Information Provided for each Appropriation or Capital Injection
(where applicable)
Part 2 - Departmental Appropriations Part 3 - Non-Departmental Appropriations Part 4 - MCAs
  Part 2.1
Output Expenses
Part 2.2
Other Expenses*
Part 2.3
Capital Expenditure and Capital Injections**
Part 3.1
Output Expenses
Part 3.2
Benefits or Related Expenses
Part 3.3
Borrowing Expenses
Part 3.4
Other Expenses
Part 3.5
Capital Expenditure
Part 4
Expense and Capital Expenses
Title of the appropriation.
The scope of the appropriation. N/A
The single overarching purpose statement for an MCA. N/A N/A N/A N/A N/A N/A N/A N/A
The scope of each category in a multi-category appropriation. N/A N/A N/A N/A N/A N/A N/A N/A
A table showing the budgeted amount and estimated actual expenditure for the previous financial year, and the budgeted amount for the appropriation for the current financial year. ✓ and revenue sources ✓ for capital expenditure
Components of the appropriation or category (where applicable). This information, while not required by the PFA, allows for more meaningful information to be provided where the expense is more than $50 million. N/A N/A
Comparators for restructured appropriations or categories (where applicable). N/A
What is intended to be achieved with each appropriation.
How performance will be assessed for each appropriation (or a statement of why the appropriation has been exempted from this requirement) or capital injection. N/A
What is intended to be achieved with each category of an MCA, and (if not exempted from reporting) how performance will be assessed. N/A N/A N/A N/A N/A N/A N/A N/A
Which appropriation Minister or agency will report at the end-of-year on the performance of the appropriation or capital injection (if not exempted from reporting) and the name of the document the information will appear in when tabled in the House. N/A
Service providers table (or text if there is only one service provider), which identifies the main service providers for each non-departmental output expense and non-departmental other expense appropriations. N/A N/A N/A N/A N/A N/A
Current and past policy initiatives (if any). The current and past policy initiatives tables provides a five-year history of announced initiatives that impact on the Budget year, the preceding year, and the following three years. N/A
Reasons for change, which explain significant changes of amounts of an appropriation between years (if any).
Conditions on use of appropriation, which can include administrative criteria and processes contained in legislation, regulation and Government decisions. N/A N/A N/A
Memorandum accounts (if any), which record accumulated surpluses and deficits incurred in the provision of outputs on a basis of full cost-recovery from third parties (including other departments. N/A N/A N/A N/A N/A N/A N/A
Multi-year appropriations (if any). The information provided is similar to other information above, with the exception of memorandum accounts. N/A N/A N/A N/A N/A
Capital injections and movements in departmental net assets table. This table shows how capital injections to be authorised relate to movements in departmental net assets and what any capital injection is for. N/A N/A N/A N/A N/A N/A N/A N/A

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

** 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.

  • 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/2014
  • 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 2013/14, Budget totals proposed for 2014/15 and estimated totals for the three financial years to 2017/18 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 2013/14 and totals proposed for 2014/15 for each Vote
    • current-year revenue-dependent appropriations for each Vote
    • multi-year appropriations by Vote, appropriation type and period
    • capital injection authorisations for 2014/15, and
    • types of Crown revenue and Crown capital receipts for 2013/14 and 2014/15 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 www.treasury.govt.nz/budget/2014/summarytables/estimates

An electronic archive of Budgets of the Government of New Zealand from 1997 to 2013 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; there is a material or significant change in the intentions; or the information in the strategic intentions is false or misleading.

Strategic intentions set the 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 financial forecasts 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 annual report - the appropriation Minister must be presented within 4 months after the end of the financial year on the use of 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.

 
Term Definition
Appropriation An appropriation is a parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
Appropriation Minister The Minister responsible for specific appropriations being sought within a Vote.  As several Ministers may now hold appropriations within a single Vote, each appropriation will have a tag (M1, M2 etc) identifying the Minister responsible for that line item.
Appropriation scope One of the defining terms of an appropriation that establishes limits on the activities for which the Crown or an Office of Parliament is authorised to incur expenses or capital expenditure under that appropriation.
Capital expenditure The cost of assets acquired or developed including any ownership interest in entities, but excluding inventory.
Capital injection Investment by the Crown in a department, which increases the department's net asset balance.
Capital withdrawals Returns of capital by a department to the Crown, which reduce the department's closing net asset balance.
Category A grouping of similar or related expenses or a grouping of similar or related capital expenditure.
Crown revenue Revenue earned on behalf of the Crown.  These flows are accounted for as revenue to the Crown rather than as departmental revenue.
Department Generally references to Departments also include an Office of Parliament as provided in section 26E(4) of the Public Finance Act 1989.
Estimated actual

For an amount, the estimated actual incorporates the actual amount that has been spent and an estimate of the amount to be spent for the rest of the year. 

For anything else, the estimated actual incorporates actual performance that has been achieved and an estimate of performance for the rest of the year. 

Expenses Amounts consumed or losses of service potential or future economic benefits, other than those relating to capital withdrawals, in a financial year.  [An accrual concept measured in accordance with generally accepted accounting practice.]
GST Goods and services tax.  Appropriations are stated GST exclusive.
MCA Multi-category appropriation.
MYA Multi-year appropriation.
N/A Not applicable.
Office of Parliament There are three Offices of Parliament - the Office of the Auditor General, the Office of the Ombudsmen, and the office of the Parliamentary Commissioner for the Environment. Each is headed by an Officer of Parliament.
Outputs Goods or services supplied by departments and other entities to external parties.  Outputs are a variety of types, including policy advice, administration of contracts and grants, and the provision of specific services.
PFA Public Finance Act 1989.
PLA Permanent Legislative Authority - the traditional term for an appropriation authorised for an indefinite period by legislation other than an Appropriation Act (also known as a permanent appropriation).
RDA Revenue-dependent appropriations, which are authorised by section 21(1) of the PFA 1989.
Responsible Minister The Minister responsible for the financial performance of a department or Crown entity.  In relation to an Office of Parliament, the Office of the Clerk of the House of Representatives, and the Parliamentary Service, the Speaker is the responsible Minister.
Revenue from the Crown Revenue earned by a department from the Crown for the provision of outputs to or on behalf of the Crown.  These flows are accounted for as departmental revenue.  Revenue from the Crown is eliminated for purposes of reporting the Crown's overall financial performance and position.
Revenue from Others Revenue earned by a department from other departments and from third parties.  Revenue from other departments is eliminated for purposes of reporting the Crown's overall financial performance and position.
Vote A grouping of one or more appropriations that are the responsibility of one or more Ministers of the Crown and are administered by one department or Office of Parliament.