Information supporting the estimates of appropriations

Education and Science Sector

Information Supporting the Estimates is organised on the basis of sectors, with each Vote and its administering department allocated to one sector (with a small number of exceptions). The Information Supporting the Estimates comprises of sector overview information, together with statements of responsibility; performance information for appropriations in Votes covered by the sector; and statements of forecast service performance and forecast financial statements of departments included in the sector. Statements of Intent of departments included in the sector form part of the supporting information.

Chapters of the Economic Development and Infrastructure Sector volume of the Information Supporting the Estimates 2010/11 are available in Adobe PDF and HTML formats.

Using PDF Files

Cover, Contents#

Introduction#

  • Purpose of Information Supporting the Estimates
  • Votes and Departments in Each Sector
  • Purpose and Nature of Appropriations
  • Guide to Reading Information Supporting theEstimates
  • Terms and Definitions
  • Useful Links

Sector Overview#

  • Ministerial Statements of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote Crown Research Institutes
  • Vote Education Review Office
  • Vote Education
  • Vote Research, Science and Technology

Statements of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • Ministry of Education
  • Education Review Office
  • Ministry of Research, Science and Technology

Statements of Intent of Departments (separately produced but forming part of this volume)#

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Research, Science and Technology
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Our biologically-based industries are competitive and generate wealth for New Zealand.
Impact - New Zealand has an innovative primary sector that is market responsive and with increased diversification into higher value product categories.
Biological Industries Research
Outcome - Increased contribution of the energy and minerals sector to New Zealand's economic growth.
Impact - New Zealand has improved energy security and energy usage, with more effective extraction of mineral resources.
Energy and Minerals Research
Outcome - The Government and New Zealanders see the benefit from public investment in research, science and technology.
Impact - New Zealanders receive information about the importance and value of science and technology.
Engaging New Zealanders with Science and Technology
Outcome - A strong and resilient environment that supports the economy to develop within environmental limits.
Impact - Improved understanding of the environment to support the development of New Zealand industries and work of statutory management agencies and government departments.
Environmental Research
Outcome - Broadening and deepening the research skill base in New Zealand and accelerating the development of our most talented researchers for increased productivity.
Impact - Our most excellent researchers are retained in, and attracted back to New Zealand.
Fellowships for Excellence
Outcome - New Zealand firms have improved technological capability and international connectedness.
Impact - Firms have access to overseas expertise and knowledge.
Global Technology Partnerships
Outcome - Improving hazard management and resilience within urban and rural settlements in New Zealand.
Impact - The resilience of communities to natural disasters is improved by new tools and knowledge for the management of hazards and durability of infrastructure within urban and rural settlements.
Hazards and Infrastructure Research
Outcome - Improving the health and social well-being of New Zealanders.
Impact - Increased knowledge and understanding of the factors influencing health status, including health disparity between New Zealanders and the economic underpinnings of social wellbeing.
Health and Society Research
Outcome - Diversifying New Zealand's economy by new technologies, novel materials, applications and new products, processes and services, resulting in new and emerging industries.
Impact - New Zealand's niche manufacturing and technology firms will benefit from new technologies, novel materials, applications and new products, processes and services.
High Value Manufacturing and Services Research
Outcome - Increasing knowledge through excellent research in New Zealand.
Impact - Profound or unexpected discoveries, or the catalysis of significant developments in previously unrelated and strategically important fields of knowledge.
Marsden Fund
Outcome - Meeting the obligations under the Measurements Standards Act 1992 and the Convention du Metre.
Impact - Internationally accepted and reliable physical measurement applied within New Zealand.
National Measurement Standards
Outcome - Commercialisation of Research and Development is accelerated and linkages between firms research organisations are stronger.
Impact - Firms access research organisations.
Research and Development Facilitation and Promotion Service
Outcome - The Government and New Zealanders see the benefit from public investment in research, science and technology.
Impact - Research funding is effectively distributed to researchers.
Research Contract Management
Outcome - Broadening and deepening the research base of Vision Matauranga and the skills of those researchers involved.
Impact - An improved capability among Vision Matauranga researchers to provide excellent research for New Zealand.
Vision Matauranga Capability Fund

Biological Industries Research (M56)

Scope of Appropriation

This appropriation is limited to research and research applications to support productivity growth and sustainability of New Zealand's primary industries, and the development of premium food and industrial biological products and technologies responsive to global consumer preferences.

Expenses

Expenses - Biological Industries Research (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 172,227

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Biological Industries Research is a new output expense that has been created as a result of transfers from Environmental Research, the New Economy Research Fund, Research for Industry, the Pre-Seed Accelerator Fund and from Technology New Zealand. The appropriation focus will be on the activities:

  • Improve productivity, sustainability and competitiveness of New Zealand's agriculture, horticulture, forestry and fisheries industries.
  • Develop new technologies for economic diversification based on the strengths of New Zealand's primary industries and increased export revenue from food and biological based products.

Output Performance Measures and Standards

Output Performance Measures and Standards - Biological Industries Research (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared by the FIA outlining the outcomes of any research funded through the output expense that has concluded during the year. Not applicable Not applicable One annual report on research outcomes received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Biological Industries Research (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction dated May 2010. To support sustainable productivity growth of New Zealand's primary industries, and the development of premium food and industrial biological products and technologies responsive to global consumer preferences.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Biological Industries Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Food Innovation Network of New Zealand 2010/11 - (763) - - -
Global Alliance 2010/11 - (2,317) (2,315) (2,500) (2,500)
Savings- Budget Economic Fiscal Update 2010 2010/11 - (782) (765) (1,716) (1,859)
Science Priorities for Research, Science and Technology 2010/11 - 175,909 176,074 177,213 177,219

Energy and Minerals Research (M56)#

Scope of Appropriation

This appropriation is limited to research and research applications to improve mineral extraction, improve energy security and to obtain efficient and affordable energy use.

Expenses

Expenses - Energy and Minerals Research (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 26,446

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Energy and Minerals Research is a new output expense that has been created as a result of transfers from Research for Industry and Sustainable Energy Research. The appropriation will focus on the following activities:

  • Develop potential new sustainable low carbon energy technologies.
  • Improve energy management and the understanding of current energy resources, and future energy needs.
  • Increase wealth from mineral resources.
  • Improve the identification and extraction of mineral resources.

Output Performance Measures and Standards

Output Performance Measures and Standards - Energy and Minerals Research (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared by the FIA outlining the outcomes of any research funded through the output expense that has concluded during the financial year. Not applicable Not applicable One annual report on research outcomes received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Energy and Minerals Research (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction dated 30 April 2010 To increase the contribution of energy and minerals to New Zealand's economic growth, enhance energy security and assist New Zealand to meet future energy and mineral needs in efficient, affordable and environmentally responsible ways.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Energy and Minerals Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Restructure of the Vote- Budget Economic Fiscal Update 2010 2010/11 - (138) 51 (236) (279)
Science Priorities for Research, Science and Technology 2010/11 - 26,584 21,676 20,803 20,819

Engaging New Zealanders with Science and Technology (M56)#

Scope of Appropriation

This appropriation is limited to engaging New Zealanders with science and technology through approaches determined by the Minister.

Expenses

Expenses - Engaging New Zealanders with Science and Technology (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,958 6,868 10,039

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Engaging New Zealanders output expense has had increased funding as a result from a transfer from Supporting Promising Individuals. Activities within this appropriation are:

  • Services provided by other parties to support activities that engage New Zealanders about the role of research.
  • Science and technology in supporting innovation in the economy and society.

Output Performance Measures and Standards

Output Performance Measures and Standards - Engaging New Zealanders with Science and Technology (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

New Zealand Science Journals

     
A report that advises the number of journals published, average turnaround time from submission to publication as specified in the funding agreement, and that accepted papers were published subject to available journal space will be provided each six months by the FIA. Achieved Achieved Two reports received.

Promoting awareness of RST

     
A report that details the presentation of the New Zealand Science and Technology Medals, management of a national promotional programme, support for talented secondary school students and the development of new promotional activities, as specified in the funding agreement, will be provided each six months by the FIA. Achieved Achieved Two reports received.

Engaging New Zealanders on Biotechnology

     
A report on how New Zealand schools are using Biotechnology information on the Biotechnology Learning Hub and details about the operation of the Hub will be provided each six months. Achieved Achieved Two reports received.

Linking school students with RST research

     
Provision of data by the FIA for the RST Scorecard is in alignment with content guidelines specified in the funding agreement. Achieved Achieved Supplied by30 September following the end of the financial year

Support for Smash Palace

     
A report on projects to build links between scientists and artists as specified in the funding agreement will be provided each six months. Achieved Achieved Two reports received.

The Science and Technology Media Centre

     
A report on the maintenance of a media centre that strengthens linkages between the media and the RST sector will be provided each six months by the FIA. Achieved Achieved Two reports received.

The Prime Minister's Prizes for Science

     
A report on the management and awarding of the Prime Minister's Prizes for Science will be provided annually by the FIA. Achieved Achieved Report received by 30 June each year.

Science, Mathematics and Technology Teacher Fellowships

     
A report on the management and awarding of the contracts as provided in the funding agreement will be provided each six months by the FIA. Achieved Achieved Two reports received.

James Cook Research Fellowships

     
A report on the management and awarding of the contracts as provided in the funding agreement will be provided each six months by the FIA. Achieved Achieved Two reports received.

Talented School Students Travel Award

     
A report on the management and awarding of the contracts as provided in the funding agreement will be provided each six months by the FIA. Achieved Achieved Two reports received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Engaging New Zealanders with Science and Technology (M56) - Research, Science and Technology
Reference Conditions
Cabinet decision Engage New Zealanders with science and technology through approaches determined by the Minister.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Engaging New Zealanders with Science and Technology (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Creative Commons Aotearoa New Zealand 2010/11 - 170 170 170 -
Savings- Budget Economic Fiscal Update 2010 2010/11 - (2,171) (2,171) (2,171) (2,171)
Science Priorities for Research, Science and Technology 2010/11 - 5,244 5,244 5,244 5,244
Budget 2009 Prime Minister's Prizes for Science 2009/10 1,000 1,000 1,000 1,000 1,000
Previous Government            
Budget 2008 science learning hub and media centre 2008/09 1,825 1,825 1,825 1,825 1,825
Linking schools and research organisations - pilot (as at 2006 Budget (BEFU)) 2006/07 1,000 1,000 1,000 1,000 1,000
RSNZ - Administration expenses and publication costs (as at 2006 Budget (BEFU)) 2006/07 155 155 155 155 155

Environmental Research (M56)#

Scope of Appropriation

This appropriation is limited to research and research applications to underpin the management, protection and enhancement of natural ecosystems, land and freshwater resources, climate and atmosphere within New Zealand, including Antarctica.

Expenses

Expenses - Environmental Research (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 101,300 101,300 74,253

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Environmental Research output expense has had funding reduced from 2009/10 to 2010/11 as a result of transfers out to Biological Industries Research, Hazards and Infrastructure Research, Health and Society Research and to Science Collections and Infrastructure. The appropriation will focus on the following activities:

  • Soil and water resources are used in sustainable manner and are preserved for future generations.
  • Protect natural indigenous land and freshwater ecosystems.
  • Protect the marine ecosystem.
  • Improve our ability to predict, mitigate and adapt to impacts of climate change.
  • Improve understanding of global processes such as plate tectonics as a basis for anticipating and managing future impacts.

Output Performance Measures and Standards

Output Performance Measures and Standards - Environmental Research (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared by the FIA outlining the outcomes of any research funded through the output expense that has concluded during the financial year. Achieved Achieved One annual report on research outcomes received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Environmental Research (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction dated May 2010. To fund environmental research that underpins the management, protection and enhancement of natural ecosystems, land and freshwater resources, climate and atmosphere within New Zealand including Antarctica.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Environmental Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Food Innovation Network of New Zealand 2010/11 - (2,137) - - -
Global Alliance 2010/11 - (363) (185) - -
Science Priorities for Research, Science and Technology 2010/11 - (25,105) (24,552) (23,958) (23,957)
Savings- Budget Economic Fiscal Update 2010 2009/10 (2,555) (1,781) (4,218) (5,446) (5,514)
Align Backbone output funding OBU 2009/10 2009/10 1,286 643 643 643 643
Budget 2009 reversal of the unfunded Budget 2008 commitment 2009/10 (13,888) (6,000) (6,000) (6,000) (6,000)
Previous Government            
MBU 2008/09 restructure of the undistributed funds held by FRST 2008/09 6,111 - - - -
Budget 2008 Land and water use and quality 2008/09 3,000 3,000 3,000 3,000 3,000
Budget 2008 coordinated call by FRST and EU 2008/09 1,500 1,500 1,500 1,500 1,500
Budget 2008 Backbone 2008/09 4,564 4,564 4,564 4,564 4,564
Budget 2008 Outcome Based Investments 2008/09 4,500 4,500 4,500 4,500 4,500
MBU 2007/08 Restructure of funding for climate change adaption 2007/08 833 833 - - -
OBU 2007/08 Climate change adaption research 2007/08 2,500 2,500 2,500 2,500 2,500
Budget 2007 Climate change research 2007/08 2,000 2,000 2,000 2,000 2,000
Budget 2007 International Polar Year 2007/08 1,350 - - - -
Increasing environmental research (as at 2006 Budget (BEFU)) NZ Ecosystems 2006/07 3,900 3,900 3,900 3,900 3,900

Fellowships for Excellence (M56)#

Scope of Appropriation

This appropriation is limited to encouraging the career development of the country's talented early and mid-career researchers.

Expenses

Expenses - Fellowships for Excellence (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 10,732

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Fellowships for Excellence is a new output expense which has been created as a result of transfers from Rutherford Foundation and Supporting Promising Individuals. The appropriation will focus on the following activities:

  • Early-career researcher grants to support post graduate research.
  • Fellowship and scholarships are awarded to top talent and to build capability in the research, science and technology workforce.
  • Scholarships are awarded for United States of America based post graduate research.
  • Supporting the development of human resources in research, science and technology.

Output Performance Measures and Standards

Output Performance Measures and Standards - Fellowships for Excellence (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared by the FIA outlining the outcomes of any research funded though the output expense that has concluded during the financial year. Not applicable Not applicable One annual report on research outcomes received.

Fulbright Scholarships

     
A report on the scholarships awarded, showing details as specified in the funding agreement, will be provided annually by the FIA. Achieved. Achieved. Report received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Fellowships for Excellence (M56) - Research, Science and Technology
Reference Conditions
Cabinet decision Established by terms of reference that set out the funding delivery mechanisms, operable criteria and expected levels of research commitment in each mechanism.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Fellowships for Excellence (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Top Talent 2010/11 - 2,000 5,000 6,000 7,000
Science Priorities for Research, Science and Technology 2010/11 - 8,732 7,843 7,843 7,843

Global Technology Partnership (M56)#

Scope of Appropriation

This appropriation is limited to services that provide New Zealand firms with access to information about international RS&T markets and expertise.

Expenses

Expenses - Global Technology Partnership (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 400 400 400

Reasons for Change in Appropriation

There is no change in this appropriation from 2009/10 to 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - Global Technology Partnership (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report that identifies the cost of the Global Technology Partnerships service, reflecting the direct processing time and cost, and the equitable distribution of all indirect costs, is provided quarterly by the FIA. Achieved Achieved Four reports received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Global Technology Partnership (M56) - Research, Science and Technology
Reference Conditions
Cabinet decision Objectives of the Global Technology Programme (GTP) are to:
  • contribute to achieving the government's economic growth objectives by helping to lift the quality and quantity of business expenditure on research and development across the economy
  • enable companies, particularly small and medium enterprises, to easily identify and access knowledge, technology and business collaborations and partnerships
  • increase both domestic and international technology and knowledge transfer
  • improve the commercial linkages between businesses and knowledge institutions
  • increase the international connection and collaboration of New Zealand businesses and knowledge institutions, and
  • operate in a financially self-sustaining manner on an ongoing basis.
GTP is expected to be self-sustaining but for the first five years will be subsidised by the government.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Global Technology Partnership (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
2008 OBU Continuation of support 2009/10 400 400 - - -

Hazards and Infrastructure Research (M56)#

Scope of Appropriation

This appropriation is limited to research and research applications to support hazard management and improve the durability of NZ urban and rural settlements.

Expenses

Expenses - Hazards and Infrastructure Research (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 23,553

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Hazards and Infrastructure Research is a new output expense that has been created as a result of transfers from Environmental Research and from Research for Industry. The appropriation will focus on the following activities:

  • Get an effective understanding and management of risks and hazards with the potential to have a significant economic, social and environmental impacts to New Zealand.
  • Improve the quality of New Zealand's urban, peri-urban and rural settlements.

Output Performance Measures and Standards

Output Performance Measures and Standards - Hazards and Infrastructure Research (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared by the FIA outlining the outcomes of any research funded through the output expense that has concluded during the financial year. - - One annual report on research outcomes received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Hazards and Infrastructure Research (M56) - Research, Science and Technology
Reference Conditions
Ministerial direction dated May 2010 To increase New Zealand's resilience to hazards, support sustainable urban, infrastructure and building development and help communities to manage growth and change, mitigate risks and maximise infrastructure efficiency.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Hazards and Infrastructure Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Savings- Budget Economic Fiscal Update 2010 2010/11   (156) 52 (100) (100)
Science Priorities for Research, Science and Technology 2010/11 - 23,709 23,161 23,235 23,245

Health and Society Research (M56)#

Scope of Appropriation

This appropriation is limited to research and research applications to improve the health and social well-being of New Zealanders.

Expenses

Expenses - Health and Society Research (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 87,363

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Health and Society Research is a new output expense that has been created as a result of transfers from Environmental Research, Health Research, Research for Industry, Social Research, Support for Primary Health Research and from Supporting Promising Individuals. The appropriation will focus on the following activities:

  • Improve the health status of New Zealanders.
  • Target health research and the Partnership Programme response to specific health sector issues.
  • Improve health services.
  • Support research in social, economic, and primary health.

Funds were transferred to to go towards the Longitudinal Study of NZ Youth, the Productivity Commission, and savings were identified in the Budget Economic Fiscal Update.

Output Performance Measures and Standards

Output Performance Measures and Standards - Health and Society Research (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared by the FIA outlining the outcomes of any research funded through the output expense that has concluded during the financial year. Not applicable Not applicable One annual report on research outcomes received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Health and Society Research (M56) - Research, Science and Technology
Reference Conditions
Ministerial direction dated May 2010. To increase understanding of the social and economic factors contributing to improved health and social wellbeing of New Zealanders.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Health and Society Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Longitudinal Study of NZ Youth(MSD) 2010/11 - (250) (250) (250) -
Productivity Commission 2010/11 - (70) (140) (150) (150)
Savings- Budget Economic Fiscal Update 2010 2010/11 - (2,852) (5,093) (5,199) (4,920)
Science Priorities for Research, Science and Technology 2010/11 - 90,535 90,438 89,840 89,844

High Value Manufacturing and Services Research (M56)#

Scope of Appropriation

This appropriation is limited to research and research applications to develop new technologies, novel materials, and new products, processes and services for the manufacturing and technology sectors.

Expenses

Expenses - High Value Manufacturing and Services Research (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 138,407

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The High Value Manufacturing and Services Research is a new output expense that has been created as a result of transfers from the New Economy Research Fund, Research for Industry, the Pre-Seed Accelerator Fund and from Technology New Zealand. The appropriation will focus on the following activities:

  • Develop new technologies, novel materials, and new products, processes and services for the manufacturing and technology sectors.

Output Performance Measures and Standards

Output Performance Measures and Standards - High Value Manufacturing and Services Research (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared by the FIA outlining the outcomes of any research funded through the output expense that has concluded during the financial year. Not applicable Not applicable One annual report on research outcomes received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - High Value Manufacturing and Services Research (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction dated May 2010. To diversify New Zealand's economy by undertaking research, science and technology that will enable the development of new technologies, novel materials and new products, processes and services resulting in the growth of existing, new and emerging industries.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - High Value Manufacturing and Services Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Savings- Budget Economic Fiscal Update 2010 2010/11 - (349) (1,979) (2,975) (3,160)
Technology Development Grant (BEFU) 2010 2010/11 - 22,500 45,000 60,000 62,000
Technology Transfers initiatives (BEFU) 2010 2010/11 - 7,000 8,000 8,000 8,000
Science Priorities for Research, Science and Technology 2010/11 - 109,256 108,272 108,216 108,179

Marsden Fund (M56)#

Scope of Appropriation

This appropriation is limited to excellent investigator-initiated research.

Expenses

Expenses - Marsden Fund (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 46,755 46,755 46,755

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Marsden Fund output expense has been reduced following a transfer to Research Contract Management.

Output Performance Measures and Standards

Output Performance Measures and Standards - Marsden Fund (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared by the FIA outlining the outcomes of any research funded through the output expense that has concluded during the financial year. Achieved Achieved One annual report on research outcomes received

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Marsden Fund (M56) - Research, Science and Technology
Reference Conditions
Terms of Reference - Marsden Fund - 2008. The primary objectives of the Marsden Fund are to:
  • enhance the quality of research in New Zealand by creating increased opportunity to undertake excellent investigator-initiated research, and
  • support the advancement of knowledge in New Zealand, and contribute to the global knowledge base.
A secondary objective of the Marsden Fund is to contribute to the development of advanced skills in New Zealand including support for continuing training of post-doctoral level researchers and support for the establishment of early careers of new and emerging researchers.
The Marsden Fund is open to applicants that meet the Marsden Fund's eligibility criteria. The eligibility criteria are determined by the Marsden Fund Council. The eligibility criteria must:
  • ensure successful proposals are consistent with the nature and objectives of the Marsden Fund stated above, and
  • applicants are New Zealand-based researchers undertaking research to be carried out in New Zealand or overseas if its nature demands that it be carried out elsewhere. Collaborating researchers from outside New Zealand are able to be included in proposals, but are not able to receive direct funding support for their time or institutional costs.
Otherwise, the Council may, from time to time adjust the eligibility criteria of the Marsden Fund to increase its effectiveness in achieving the Marsden Fund's objectives.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Marsden Fund (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
RCM for RSNZ for administration expenses for the Marsden Fund (as at 2009/10 FBU) 2009/10 (123) (123) (123) (123) (123)
Budget 2009 Increased funding 2009/10 9,000 9,000 9,000 9,000 9,000
Budget 2009 Reversal of unfunded Budget 2008 commitment 2009/10 - - (1,000) (4,000) (4,000)
Previous Government            
Budget 2008 Increased funding 2008/09 2,000 3,000 6,000 6,000 6,000
Budget 2007 Increased funding 2007/08 2,000 2,000 2,000 2,000 2,000

National Measurement Standards (M56)#

Scope of Appropriation

This appropriation is limited to providing specified standards to satisfy the needs for traceable physical measurement in New Zealand.

Expenses

Expenses - National Measurement Standards (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,764 5,764 5,764

Reasons for Change in Appropriation

There is no change in appropriation between 2009/10 and 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - National Measurement Standards (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Provision of national measurement standards and related services by the FIA in accordance with the requirements specified in the funding agreement with the Minister reviewed each six months. Achieved Achieved Two reports received.
Maintenance of the measurement standards in accordance with the resolutions and recommendations of the Metric Treaty Organisation with all technical procedures related to the measurement standards validated and reviewed each six months by the FIA. Achieved Achieved Two reports received.
Outputs delivered in accordance with time lines specified in the funding agreement with the Minister and reviewed each six months by the FIA. Achieved Achieved Two reports received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - National Measurement Standards (M56) - Research, Science and Technology
Reference Conditions
Measurements Standards Act 1992 The Minister of RST shall provide for the use throughout New Zealand of uniform units of measurement of physical quantities, and for the establishment and maintenance of standards of measurement of physical quantities.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - National Measurement Standards (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Government            
Extending Measurements Standards (operating) (as at 2006 Budget (BEFU)) 2006/07 860 860 860 860 860

Research and Development Facilitation and Promotion Service (M56)#

Scope of Appropriation

This appropriation is limited to the promotion of commercialisation of research and development, and facilitation of linkages between firms and research organisations.

Expenses

Expenses - Research and Development Facilitation and Promotion Service (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,200 4,200 5,000

Reasons for Change in Appropriation

The appropriation funds increased by $800,000 from 2009/10 to 2010/11. Savings were identified in the Budget Economic Fiscal Update in 2010 these were deducted from the 2009/10 financial year and redistributed, in 2010/11 the funding returns back to the original baseline of $5 million.

Output Performance Measures and Standards

Output Performance Measures and Standards - Research and Development Facilitation and Promotion Service (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report by the FIA that identifies the type and nature of services, including those services contracted from third party providers, provided to entities and sectors. The report should identify the number of entities receiving these services and be provided quarterly. Achieved Achieved Four reports received.
A report on the cost of the R and D Facilitation and Promotion Service reflecting the direct processing time and cost, and the equitable distribution of all indirect costs, is provided quarterly by the FIA. Achieved Achieved Four reports received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Research and Development Facilitation and Promotion Service (M56) - Research, Science and Technology
Reference Conditions
Cabinet decision Service to facilitate relationships between firms and the research community.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Research and Development Facilitation and Promotion Service (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Government            
Savings- Budget Economic Fiscal Update 2010 2009/10 (800) - - - -
Budget 2008 Increased funding for the service 2008/09 3,000 3,000 3,000 3,000 3,000
Budget 2007 Establish the service activity 2007/08 2,000 2,000 2,000 2,000 2,000

Research Contract Management (M56)#

Scope of Appropriation

This appropriation is limited to selection of research, science and technology-related organisations and individuals for either the provision of research, science and technology outputs, or the award of grants; and negotiate, manage and monitor appropriate contracts with those organisations or individuals.

Expenses

Expenses - Research Contract Management (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 21,957 21,957 21,807

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The appropriation has decreased from 2009/10 to 2010/11 due to International Polar Year Contestable research fund stopping of $150,000 per annum stopping in 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Research Contract Management (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of new and active contracts and dollars disbursed during the financial year are reviewed quarterly. Achieved Achieved Four reports received.
Contracts meet the criteria set out in the funding agreement and any Ministerial Directions. Achieved Achieved 100%
Provision of data for the RST Scorecard is in alignment with content guidelines specified in the funding agreement. Achieved Achieved Supplied by 30 September following the end of the financial year.
Achievement reports from research providers are produced in accordance with timelines and content guidelines specified in funding agreements between the FIA and providers. Achieved Achieved Report received from each FIA.
Contracts are monitored on the achievement of their performance objectives as specified in funding agreements between the Minister of RST and FIAs. Achieved Achieved Report received from each FIA.
FIA reports that contracts are awarded in accordance with assessment processes outlined in annually updated documents. Achieved Achieved Report received from each FIA.
FIA reports that research contract payments are made at the agreed sum to the correct providers and no payments are made in excess of the agreed sums as specified in the funding agreements. Achieved Achieved Report received from each FIA.
FIA reports that contracts, where appropriate, require research providers to obtain ethical approvals, and satisfy government regulatory requirements before the research can be undertaken. Achieved Achieved Report received from each FIA.
FIAs deliver key accountability reports in accordance with timelines specified in their funding agreements with the Minister. Achieved Achieved Each report received as specified.
Advice to the Minister as required will be delivered, consistent with the Foundation's Act, within 15 working days of the formal request and will be of a standard acceptable to the Minister. Achieved Achieved Each advice request meets the required standard.
Investment efficiency ($ contract management budget/$ investment funds disbursed) will be reported in the 4th quarter or 2nd six-monthly reports for 2010/11. Achieved Achieved Report received from each FIA.
Contracts ($ contract management budget/no. of contracts let) will be reported in the 4th quarter or 2nd six-monthly reports for 2010/11. Achieved Achieved Report received from each FIA.
Processing time split (Date of application/date of contracting) to be relevant output expenses (defined in the output agreement) reported as specified in the funding agreements between the Minister of RST and FIAs. Achieved Achieved Report received from each FIA.
The cost of research contract management (RCM) reflecting the direct processing time and cost, and the equitable distribution of all indirect costs is reported for each funding scheme being administered under agreed outputs in the funding agreements with the FIA. Achieved Achieved Report received from each FIA.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Research Contract Management (M56) - Research, Science and Technology
Reference Conditions
Output agreements or contracts with FIAs Funds the contract administration undertaken by HRC, FRST, RSNZ, and Fulbright New Zealand.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Research Contract Management (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Amalgamation of MoRST and FRST 2011/12 - - (900) (1,000) (2,000)
RCM for RSNZ for administration expenses for the Marsden Fund (as at 2009/10 FBU) 2009/10 123 123 123 123 123
TechNZ - incorporation of 2005 Budget decision relating to rollout year of 2009/10 (as at 2005/06 OBU (DEFU)) 2009/10 178 178 178 178 178
Previous Government            
OBU 2008 increase in RCM for FRST 2008/09 300 300 300 300 300
Technical review of investments as at 2007 Budget BEFU 2007/08 300 300 300 300 300
RCM related to the International Polar Year Contestable research fund as at 2007 Budget BEFU 2007/08 150 - - - -
Pastoral Research (as at 2006 Budget (BEFU)) 2006/07 100 100 100 100 100
Energy Research (as at 2006 Budget (BEFU)) 2006/07 75 75 75 75 75
Increasing environmental research (as at 2006 Budget (BEFU)) 2006/07 100 100 100 100 100
Introducing technical review in FRST's investment process (as at 2006 Budget (BEFU)) 2006/07 750 750 750 750 750
RCM for RSNZ for administration expenses and publication costs (as at 2006 Budget (BEFU)) 2006/07 345 345 345 345 345
RCM for NZ-United States Educational Foundation (Fulbright New Zealand) for admin of Science Scholarships (as at 2005/06 OBU (DEFU)) 2005/06 142 142 142 142 142
RCM for RSNZ for Talented Young NZers & Teacher Fellowships Schemes (as at 2005/06 OBU (DEFU)) 2005/06 39 39 39 39 39
RCM for RSNZ for administration of the Marsden Fund (social sciences panel) (as at 2005/06 MBU) 2005/06 50 50 50 50 50

Vision Matauranga Capability Fund (M56)#

Scope of Appropriation

This appropriation is limited to the development of skilled people and organisations undertaking research that supports the four themes of Vision Matauranga; indigenous innovation, environmental sustainability, health and social well being, and exploring indigenous knowledge.

Expenses

Expenses - Vision Matauranga Capability Fund (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 5,467

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Vision Matauranga Capability Fund is a new output expense that has been created as a result of transfers from the Maori Knowledge and Development Fund and Supporting Promising Individuals. The appropriation will focus on:

  • Supporting development of researchers to undertake work that relates to the four themes of Vision Matauranga; indigenous innovation, environmental sustainability, health and social well being, and exploring indigenous knowledge.

Output Performance Measures and Standards

Output Performance Measures and Standards - Vision Matauranga Capability Fund (M56) - Research, Science and Technology
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared by the FIA outlining the outcomes of any research funded through the output expense that has concluded during the financial year. Not applicable Not applicable One annual report on research outcomes received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Vision Matauranga Capability Fund (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction dated May 2010. To unlock the innovation potential of Maori knowledge, resources and people by developing skilled people and organisations to undertake or otherwise contribute to research that supports the four themes of the Vision Matauranga policy framework. This Scheme will focus on the development of skilled people and organisations to undertake research and/or contribute to, the delivery of research outcomes that supports the four themes of Vision Matauranga:
  • indigenous innovation
  • Taiao - environmental sustainability
  • Hauora/Oranga - improving health and social well being, and
  • Matauranga - exploring indigenous knowledge and RST.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Vision Matauranga Capability Fund (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Savings - Budget Economic Fiscal Update 2010 2010/11 - (500)      
Science Priorities for Research, Science and Technology 2010/11 - 5,967 5,967 5,967 5,967

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Research, Science and Technology
Provider 2009/10
Budgeted
$000
2009/10
Estimated Actual
$000
2010/11
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
The Foundation for Research, Science and Technology 417,047 417,047 478,412 Annual Report No Expiry
Health Research Council 76,132 76,132 81,802 Annual Report No Expiry
Royal Society of New Zealand 52,245 52,155 58,896 Section 32A No Expiry
Industrial Research Limited 5,764 5,764 5,764 Annual Report No Expiry
Fulbright New Zealand 142 142 675 Section 32A No Expiry

The above table summarises funding to be allocated through Vote Research, Science and Technology to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Research, Science and Technology
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Science and technology transforming New Zealand's wealth and wellbeing.
Objective - The KAREN user group makes effective use of the Advanced Network.
Advanced Network Capability Building (M56)
Outcome - Science and technology transforming New Zealand's wealth and wellbeing.
Objective - Security and convenience of access to the Australian Synchrotron.
Impact - To further scientific discovery, educate and grow the user base, strengthen New Zealand's competitive position and influence the direction of synchrotron science.
Australian Synchrotron (M56)
Outcome -Science and technology transforming New Zealand's wealth and wellbeing.
Objective - The purpose of the Carter Observatory is maintained for the provision of public good science in New Zealand.
Carter Observatory Grant (M56)
Outcome - Science and technology transforming New Zealand's wealth and wellbeing.
Objective - New Zealand's subscription to the Convention du Metre is provided for and national measurement standards applied in New Zealand are supported.
Convention Du Metre (M56)
Outcome - Science and technology transforming New Zealand's wealth and wellbeing.
Objective - The distinctive role of CRIs is reinforced and supported to maintain the scientific capabilities required for the provision of public good science in New Zealand.
CRI Capability Fund (M56)
Outcome - Science and technology transforming New Zealand's wealth and wellbeing.
Objective - To provide for the establishment and maintenance of a world-class genomic research capability in New Zealand.
Genomics Research Infrastructure (M56)
Outcome - New Zealand effectively leverages bilateral research, science and technology relationships.
Impact - There is an increase in New Zealand's participation in the international science arena.
International Relationships (M56)
Outcome - Science and technology transforming New Zealand's wealth and wellbeing.
Objective - To promote and advance science and technology.
Royal Society of New Zealand (M56)
Outcome - Core research capabilities and national research assets are supported.
Impact - The national seed, plant and other science collections, research databases and significant infrastructure being held in stasis, are retained and maintained.
Science Collections and Infrastructure (M56)

Advanced Network Capability Building (M56)

Scope of Appropriation

This appropriation is limited to a grant for the development of capability within the Advanced Network user group (including Tertiary Education Institutes and Crown Research Institutes) to make effective use of the Advanced Network.

Expenses

Expenses - Advanced Network Capability Building (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,340 2,003 200

Reasons for Change in Appropriation

This appropriation will decrease from $2.340 million in 2009/10 to $200,000 in 2010/11. The reason for the change between the 2009/10 year and the 2010/11 year is a planned reduction in the level of annual funding.

Expected Results

Expected Results - Advanced Network Capability Building (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A FIA is appointed to administer the Advanced Network Capability Building Fund (ANCBF), or part thereof, for 2010/11. Achieved Achieved Achieved
The FIA reports six-monthly to MoRST on the number and value of grants made under the ANCBF, identifying their individual purpose and application. Achieved Achieved Two reports received
The FIA reports six-monthly to MoRST on whether applicants to the ANCBF are advised within 3 Business Days of their request for the status of their application. Achieved Achieved Two reports received

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Advanced Network Capability Building (M56) - Research, Science and Technology
Reference Conditions
Cabinet decision The capability fund is for the purposes of developing skills and opportunities for optimal utilisation of KAREN, including the resolution of any existing 'last mile' issues for accessing the Advanced Network by the user membership. Since 2007 the Advanced Network has become known as the Kiwi Advanced Research and Education Network (KAREN).

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Advanced Network Capability Building (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Transfer of funding OBU 2009 2009/10 1,040 - - - -
Previous Government            
Budget 2008 increase for e-science 2008/09 200 200 - - -
MBU 2008/09 rephase funding to 2009/10 2008/09 1,100 - - - -

Australian Synchrotron (M56)#

Scope of Appropriation

This appropriation is limited to a grant being New Zealand Government's contribution to the operation of a synchrotron located in Victoria, Australia.

Expenses

Expenses - Australian Synchrotron (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 694 694 785

Reasons for Change in Appropriation

This appropriation will increase from $694,000 in 2009/10 to $785,000 in 2010/11. The reason for the change is a planned increase in the level of annual funding to support existing infrastructure and foreign exchange cost pressures.

Expected Results

Expected Results - Australian Synchrotron (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The agreed contribution is paid as the Crown's contribution to ensure New Zealand access to the Australian Synchrotron. Achieved Achieved Paid in full and on time.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Australian Synchrotron (M56) - Research, Science and Technology
Reference Conditions
Agreement with the New Zealand Synchrotron Group Limited September 2006. Minister's commitment to:
  • partially fund the Company's capital requirements by way of grant, and
  • partially fund each Participant's payment of the Company's operational expenses under the Participants' Agreement by way of grant.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Australian Synchrotron (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Budget 2009 Foreign exchange cost pressure 2008/09 50 40 - - -
Previous Government            
Supporting existing infrastructure - Synchrotron (as at 2006 Budget (BEFU)) 2006/07 644 - - - -
Supporting existing infrastructure OBU 2006/07 2006/07 - 745 - - -

Carter Observatory Grant (M56)#

Scope of Appropriation

This appropriation is limited to a grant in terms of section 19 of the Carter Observatory Act 1938.

Expenses

Expenses - Carter Observatory Grant (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2 2 2

Reasons for Change in Appropriation

There is no change in appropriation from 2009/10 to 2010/11.

Expected Results

Expected Results - Carter Observatory Grant (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Meet the Crown's obligation by paying the annual funding Achieved Achieved Paid in full and on time.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Carter Observatory Grant (M56) - Research, Science and Technology
Reference Conditions
Carter Observatory Act 1939 section 19. Funding will be used for the purpose of the exercise of the Board's functions.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Carter Observatory Grant (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
MBU 2009 recognition of the statutory obligation 2008/09 2 2 2 2 2

Convention Du Metre (M56)#

Scope of Appropriation

This appropriation is limited to the payment of New Zealand's annual subscription to the Convention du Metre.

Expenses

Expenses - Convention Du Metre (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 112 112 135

Reasons for Change in Appropriation

This appropriation will increase by $23,000 from $112,000 in 2009/10 to 2010/11 to $135,000. The appropriation takes into account the impact of foreign exchange and movement in the annual subscription.

Expected Results

Expected Results - Convention Du Metre (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Membership obligations are maintained by making the annual subscription payment. Achieved Achieved Paid in full and on time.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Convention Du Metre (M56) - Research, Science and Technology
Reference Conditions
Ratification of the convention for use of the international metric measurement system. New Zealand meets all obligations anticipated by the convention, including participation in the governing forum established in France and administered by the Bureau International des Poids et Mesures (BIPM).

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Convention Du Metre (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Convention du Metre foreign exchange cost savings as at 2009/10 FBU 2009/10 (23) - - - -
Budget 2009 foreign exchange cost pressures 2008/09 40 40 40 40 40
Previous Government            
Convention du Metre subscription increase for 2007 and outyears (as at 2005/06 MBU) 2006/07 5 5 5 5 5

CRI Capability Fund (M56)#

Scope of Appropriation

This appropriation is limited to a grant to each Crown Research Institute (CRI) for maintaining and developing the capabilities of CRIs to fulfil their purpose.

Expenses

Expenses - CRI Capability Fund (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 60,612 60,612 60,612

Reasons for Change in Appropriation

There is no change in appropriation from 2009/10 to 2010/11.

Expected Results

Expected Results - CRI Capability Fund (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Each CRI annual report shows adequate reporting of the application of funding Achieved Achieved Eight annual reports received.
A quarterly exception report to COMU from each CRI recipient of a grant identifies changes in the use and application of the grant received Achieved Achieved Report received as appropriate.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - CRI Capability Fund (M56) - Research, Science and Technology
Reference Conditions
Cabinet decision Funding will be allocated on the basis of a CRI's research related income from all government sources, including local Government and that this income will be averaged over three years.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - CRI Capability Fund (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Budget 2009 Improving CRIs ability to develop capability for public good science outcomes 2009/10 10,000 10,000 10,000 10,000 10,000
Previous Government            
Budget 2007 Supporting research capability in New Zealand's CRIs 2007/08 4,000 4,000 4,000 4,000 4,000
Budget 2006 Supporting research capability in New Zealand's CRIs 2006/07 8,500 8,500 8,500 8,500 8,500
Budget 2005 Supporting Technology platforms for economic growth in New Zealand's Crown Research Institutes 2005/06 11,000 11,000 11,000 11,000 11,000
Budget 2005 GST on Baselines - Non-Departmental output classes 2005/06 (3,542) (3,542) (3,542) (3,542) (3,542)
Budget 2005 GST on Budget Initiatives 2005/06 (1,222) (1,222) (1,222) (1,222) (1,222)

Genomics Research Infrastructure (M56)#

Scope of Appropriation

This appropriation is limited to a grant to contribute towards the purchase and operation of infrastructure that will support genomics research.

Expenses

Expenses - Genomics Research Infrastructure (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,000 12,000 4,200

Reasons for Change in Appropriation

This appropriation will decrease from $12 million in 2009/10 to $4.200 million in 2010/11. The reason for the change is a planned reduction in the level of annual funding.

Expected Results

Expected Results - Genomics Research Infrastructure (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Each Financial Year a report to MoRST from New Zealand Genomics Limited will supply Key performance Indicators, Results of service performance and business planning, Financial reporting, and Confirmation of compliance. - - One report received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Genomics Research Infrastructure (M56) - Research, Science and Technology
Reference Conditions
Cabinet decision Funding is provided to establish a national infrastructure that will significantly enhance genomics research and analytical capability in New Zealand and which is expected to provide substantial economic and social benefits in health care, food production and environmental protection. This national genomics research infrastructure in New Zealand combines expertise in four research institutions.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Genomics Research Infrastructure (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Government            
PREFU 2008 genomics research Infrastructure 2009/10 12,000 4,200 5,600 4,700 4800

International Relationships (M56)#

Scope of Appropriation

This appropriation is limited to grants for international research relationships.

Expenses

Expenses - International Relationships (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 12,652

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The International Relationships is a new non-departmental other expense that has been created as a result of transfers from International Science and Technology Linkages, the New Economy Research Fund, and from the International Investment Opportunities Fund. The appropriation will focus its activities:

  • Influencing regional or international research.
  • Science and technology-linked activities that advance New Zealand's national interests.
  • Promoting international recognition for New Zealand as a centre for innovation.
  • Co-invest with international partners in research programmes of joint interest that will involve researchers based in New Zealand.
  • Increase the level of funding/scientific skills/ and technological capabilities that New Zealand is able to source from other countries.
  • Enable New Zealand researchers to respond to opportunities for international collaboration that arise out-of-cycle.
  • Assist world-leading researchers to establish research programmes in New Zealand in key areas of strategic interest to New Zealand.

Savings were identified in the Budget Economic Fiscal Update and funding was reduced in 2010/11.

Expected Results

Expected Results - International Relationships (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A report is prepared outlining the outcomes of any research funded through the output expense that has concluded during the financial year. Not applicable Not applicable One annual report on research outcomes received.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - International Relationships (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction dated May 2010. To effectively leverage bilateral research, science and technology relationships through increased participation by New Zealand in the international science arena.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - International Relationships (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Savings - Budget Economic Fiscal Update 2010 2010/11 - (2) - - -
Science Priorities for Research, Science and Technology 2010/11 - 12,654 11,758 11,758 11,758

Royal Society of New Zealand (M56)#

Scope of Appropriation

This appropriation is limited to an annual grant to the Royal Society of New Zealand to contribute towards the Society's aims and functions under the Royal Society of New Zealand Act 1997 to promote and advance science and technology.

Expenses

Expenses - Royal Society of New Zealand (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 500 500

Reasons for Change in Appropriation

There is no change in appropriation from 2009/10 to 2010/11.

Expected Results

Expected Results - Royal Society of New Zealand (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Annual grant to the Royal Society is paid. Achieved Achieved Grant paid in full and on time.
A six-monthly report is provided by the Royal Society of the activities undertaken by the Society in relation to the funding. Achieved Achieved Two reports received.
Royal Society Annual Report provided to MoRST. Achieved Achieved Report received by 30 September following the end of the financial year.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Royal Society of New Zealand (M56) - Research, Science and Technology
Reference Conditions
Cabinet decision This funding is limited to an annual grant to the Royal Society of New Zealand to contribute towards the Society's aims and function under the Royal Society of New Zealand Act 1997 to promote and advance science and technology.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Royal Society of New Zealand (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
OBU 2008/09 Provision of annual grant 2008/09 500 500 500 500 500

Science Collections and Infrastructure (M56)#

Scope of Appropriation

This appropriation is limited to grants to contribute to the maintenance and retention of databases, collections and significant infrastructure dedicated to research purposes.

Expenses

Expenses - Science Collections and Infrastructure (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 22,379

Reasons for Change in Appropriation

Vote RST was restructured to provide simplicity and transparency with a focus on economic drivers and research investment to achieve science priorities. The Science Collections and Infrastructure is a new non-departmental other expense that has been created as a result of transfers from Environmental Research and Research for Industry. The appropriation will focus on the following activities:

  • The national seed, plant, and other science collections research databases.
  • Significant infrastructure being held in stasis that is to be retained and maintained.
  • Management of the availability and suitability for access and use when required.

Expected Results

Expected Results - Science Collections and Infrastructure (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of new and active contracts and dollars disbursed during the financial year are reviewed quarterly. Four reports received Four reports received Four reports received
Contracts meet the criteria set out in the funding agreement and any Ministerial Directions. 100% 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Science Collections and Infrastructure (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction dated May 2010. The maintenance and retention of databases, collections and significant research infrastructure.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Science Collections and Infrastructure (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Science Priorities for Research, Science and Technology 2010/11 - 22,379 22,379 22,379 22,379

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Research, Science and Technology
Appropriation Reporting Mechanism
Advanced Network Capability Building Reported in the Annual Report of REANNZ Limited
Australian Synchrotron Reported in the Annual Report of New Zealand Synchrotron Group Limited, and respective Annual Reports of its respective shareholder members (Technical Educational Institutes and Crown Research Institutes)
Carter Observatory Grant Reported in the Annual Report of the Carter Observatory Board
Convention Du Metre Section 32A
CRI Capability Fund Reported in the Annual Report of the recipient Crown research institute
Genomics Research Infrastructure Reported in the Annual Report of New Zealand Genomics Limited, and respective Annual Reports of its respective shareholder members (Technical Educational Institutes and Crown Research Institutes)
International Relationships Section 32A and in the Annual Report of the Foundation for Research, Science and Technology
Royal Society of New Zealand Section 32A
Science Collections and Infrastructure Reported in the Annual Report of the Foundation for Research, Science and Technology

The above table indicates the mechanisms to be used for reporting actual performance for each non-departmental other expenses appropriation.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.1 Departmental Capital Expenditure - Research, Science and Technology
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Science and technology transforming New Zealand's wealth and wellbeing.
Impact - Management and maintenance of MoRST's infrastructure.
Ministry of Research, Science and Technology (PLA)

Ministry of Research, Science and Technology - Capital Expenditure PLA (M56)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Ministry of Research, Science and Technology Capital Expenditure PLA (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 321 321 95
Intangibles 358 358 250
Other - - -

Total Appropriation

679 679 345
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 321 321 95
Intangibles 358 358 250
Other - - -

Total Appropriation

679 679 345

Reasons for Change in Appropriation

Capital expenditure in MoRST is primarily investment in information systems that support business processes and information retention within the Ministry. The ongoing investment cycle in those systems does fluctuate across years and movements in 2010/11 reflect the programme change in the cycle.

Expected Results

Expected Results - Ministry of Research, Science and Technology Capital Expenditure PLA (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Capital expenditure on Ministry infrastructure achieves expected expenditure levels Not applicable Actual expenditure is less than budgeted levels Actual expenditure matches budgeted levels

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Research, Science and Technology
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - The KAREN user group makes effective use of the Advanced Network.
Research and Education Advanced Network New Zealand (M56)

Research and Education Advanced Network New Zealand (M56)

Scope of Appropriation

Equity investment in Research and Education Advanced Network New Zealand Ltd, to support the company's operations in establishing and operating the Advanced Network.

Capital Expenditure

Capital Expenditure - Research and Education Advanced Network New Zealand (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 16,000

Reasons for Change in Appropriation

The funding will maintain the operation of the KAREN network until 30 June 2013, with the expectation that REANNZ is fully funded by user revenue from 2013/14.

Expected Results

Expected Results - Research and Education Advanced Network New Zealand (M56) - Research, Science and Technology
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Funding will be paid on time - - Payment by due date

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Research and Education Advanced Network New Zealand (M56) - Research, Science and Technology
Reference Conditions
Cabinet Decision The funding will maintain the operation of the KAREN network until 30 June 2013, with the expectation that REANNZ is fully funded by user revenue from 2013/14.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Research and Education Advanced Network New Zealand (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Budget 2009 2010/11 - 16,000 - - -

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Research, Science and Technology
Appropriation Reporting Mechanism
Research and Education Advanced Network New Zealand Reported in the Annual Report of REANNZ Limited

The above table indicates the mechanisms to be used for reporting actual results for each non-departmental capital expenditure appropriation.

Statements of Forecast Service Performance#

The Statements of Forecast Service Performance of departments included in the Education and Science Sector comprise the service performance information for all departmental output expense appropriations that are proposed to be used by those departments. In this context, service performance information comprises the scope, expenses and revenue, and output performance measures and standards for each class of outputs within those departmental appropriations, as set out in Part 2.1 of the Performance Information for appropriations in each Vote.

The following table identifies the classes of outputs incorporated in the Statement of Forecast Service Performance for each department in the Education and Science Sector.

Department Composition of Statement of Forecast Service Performance
Ministry of Education The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Education.
Education Review Office The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Education Review Office.
Ministry of Research, Science and Technology The service performance information in Part 2.1 for the classes of outputs within the departmental output expense appropriation in Vote Research, Science and Technology.

Statement of Common Accounting Policies#

These accounting policies have been applied in the forecast financial statements of all departments and Offices of Parliament except as outlined in the statement of entity-specific accounting policies for individual departments or Offices of Parliament.

These forecast financial statements are prepared in accordance with section 41(1)(a)-(f) of the Public Finance Act 1989. The purpose of the forecast financial statements is to facilitate Parliament's consideration of appropriations for, and planned performance of, departments and offices of Parliament. Use of this information for other purposes may not be appropriate. It is not intended that these forecast financial statements be updated subsequent to publication.

Statement of Compliance

These forecast financial statements for the year ended 30 June 2010 comply with FRS-42 Prospective Financial Statements.

Specific Accounting Policies#

The accounting policies set out below have been applied consistently to all periods presented in these statements. These statements have been prepared on a going-concern basis. The measurement base applied is historical cost modified by the revaluation of certain assets and liabilities as identified in this statement of accounting policies.

The accrual basis of accounting has been used unless otherwise stated. These financial statements are presented in New Zealand dollars, which is the entity's functional currency. All financial information presented has been rounded to the nearest thousand.

Judgements and Estimations

The preparation of forecast financial statements in conformity with FRS-42 requires judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates and these variations may be material.

Revenue

Revenue is derived through the provision of outputs to the Crown and from services to third parties. Revenue is recognised in the forecast statement of financial performance when earned.

Leases

Operating Leases

Where substantially all of the risks and rewards of ownership are retained by the lessor, leases are classified as operating leases.

Lease payments under operating leases are recognised as an expense on a straight-line basis over the lease term.

Finance Leases

Leases which effectively transfer to the department substantially all the risks and rewards incidental to ownership of the leased items are classified as finance leases. These are capitalised at the lower of the fair value of the asset or the present value of the minimum lease payments. The leased assets and the corresponding lease liabilities are recognised in the statement of financial position. The leased assets are depreciated over the period the department is expected to benefit from their use. The interest expense component of finance lease payments is recognised in the statement of financial performance.

Borrowing Costs

Borrowing costs are recognised as an expense when incurred.

Property, Plant and Equipment

Property, plant and equipment, other than land and buildings, is stated at cost less accumulated depreciation and impairment losses. Land and buildings are stated at fair value as determined by an independent registered valuer. Fair value is determined using market-based evidence. Land and buildings are revalued with sufficient regularity to ensure that carrying value is not materially different from fair value at the end of the reporting period. Additions between revaluations are recorded at cost. Any capitalisation thresholds applied are set out in the statement of entity-specific accounting policies.

Depreciation

Depreciation is provided on a straight-line basis so as to allocate the cost (or valuation) of an item of property, plant and equipment, less any estimated residual value, over its estimated useful life.

The estimated useful lives are set out in the statement of entity-specific accounting policies.

Leasehold improvements are capitalised and the cost is amortised over the unexpired period of the lease or the estimated useful life of the improvements, whichever is shorter.

Items under construction are not depreciated. The total cost of a capital project is transferred to the appropriate asset class on its completion and then depreciated.

Intangible Assets

Intangible assets with finite useful lives (such as computer software) are recorded at cost less accumulated amortisation and impairment losses. Any capitalisation thresholds applied are set out in the statement of entity-specific accounting policies.

Amortisation is charged to the statement of financial performance on a straight-line basis over the estimated useful life of the asset.

The estimated useful lives are set out in the statement of entity-specific accounting policies.

Intangible assets with indefinite useful lives are not amortised, but are tested at least annually for impairment. Where there is an active market for an intangible asset, the asset is recorded at a revalued amount, being fair value less any subsequent accumulated amortisation and accumulated impairment losses.

Cash and Cash Equivalents

Cash includes cash on hand and funds on deposit with banks with an original maturity of 3 months or less.

Debtors and Other Receivables

Debtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest rate, less impairment charges. Allowances for estimated irrecoverable amounts are recognised when there is objective evidence that the asset is impaired.

Inventories

Inventories held for sale or use in the production of goods and services on a commercial basis are recorded at the lower of cost and net realisable value. The cost of purchased inventory is determined using the weighted average cost method.

Inventories held for distribution for public benefit purposes are recorded at cost (calculated using the weighted average cost method) adjusted when applicable for any loss of service potential. Where inventories are acquired at no cost, or for nominal consideration, the cost is the current replacement cost at the date of acquisition.

Employee Entitlements

Pension Liabilities

Obligations for contributions to defined contribution retirement plans are recognised in the statement of financial performance as they fall due.

Other Employee Entitlements

Employee entitlements to salaries and wages, annual leave, sick leave, long service leave, retiring leave and other similar benefits are recognised in the statement of financial performance when they accrue to employees. Employee entitlements to be settled within 12 months are reported at the amount expected to be paid. Long-term employee entitlements are reported at the present value of the estimated future cash outflows.

Termination Benefits

Termination benefits are recognised in the statement of financial performance only when there is a demonstrable commitment to either terminate employment prior to normal retirement date or to provide such benefits as a result of an offer to encourage voluntary redundancy. Termination benefits to be settled within 12 months are reported at the amount expected to be paid. Other termination benefits are reported at the present value of the estimated future cash outflows.

Onerous Contracts

Where the benefits to be derived from a contract are lower than the unavoidable costs of meeting the obligation under the contract, a provision is recognised. The provision is stated at the present value of the future net cash outflows expected to be incurred in respect of the contract.

Foreign Currency

Foreign currency transactions are reported at the New Zealand dollar exchange rate at the date of the transaction.

Statement of Cash Flows

The following are definitions of the terms used in the statement of cash flows:

  • cash and cash equivalents include cash on hand, cash in transit, bank accounts and deposits with an original maturity of no more than three months
  • investing activities are those activities relating to the acquisition and disposal of non-current assets
  • financing activities comprise capital injections by, or repayment of capital to, the Crown, and
  • operating activities include all transactions and other events that are not investing or financing activities.

Taxation

Departments and Offices of Parliament are exempt from income tax as public authorities. Accordingly no charge for income tax has been provided for.

Goods and Services Tax

These forecast financial statements are GST exclusive, except for receivables and payables in the statement of financial position, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense.

The net amount of GST owing to or from the Inland Revenue Department at balance date is included as part of receivables or payables (as appropriate) in the statement of financial position.

Commitments

Future expenses and liabilities to be incurred on contracts that have been entered into at balance date are disclosed as commitments to the extent that there are equally unperformed obligations.

Contingent Liabilities and Contingent Assets

Contingent liabilities are disclosed if the possibility that they will crystallise is not remote. Contingent assets are disclosed if it is probable that the benefits will be realised.

Changes in Accounting Policies#

Any changes in accounting policies since the date of the last audited financial statements prepared under New Zealand generally accepted accounting practice are described in the statement of entity-specific accounting policies. The last audited financial statements (30 June 2009) were prepared in accordance with NZ IFRS (New Zealand Equivalents to International Financial Reporting Standards) as appropriate for public benefit entities.

Forecast Financial Statements Ministry of Education #

Statement of Forecast Comprehensive Income for the year ending 30 June 2011

Statement of Forecast Comprehensive Income for the year ending 30 June 2011 - Education
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   1,630,846 1,661,696 1,703,200 1,797,138
Department(s)   3,749 3,249 3,436 3,436
Other revenue 1 6,983 9,456 5,956 5,956
Gains   - - - -
Interest   - - - -
Total Income   1,641,578 1,674,401 1,712,592 1,806,530

Expenses

         
Personnel   192,968 192,237 194,738 194,995
Operating 2 237,296 247,535 248,604 311,437
Depreciation and amortisation   411,648 425,885 442,135 455,683
Capital charge   793,243 808,744 827,115 844,415
Finance costs   - - - -
Other   231 - - -
Total Expenses   1,635,386 1,674,401 1,712,592 1,806,530
Net Surplus / (Deficit)   - - - -
Other comprehensive income   303,987 - - -
Total Comprehensive Income   310,179 - - -

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011 - Education
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   3,986,684 4,108,207 4,002,059 4,205,922
Revaluation reserve   6,596,874 6,596,874 6,990,486 6,990,486
Other reserves   - - - -
Taxpayers' Funds Opening Balance   10,583,558 10,705,081 10,992,545 11,196,408

Changes in Taxpayers' Funds

         
Comprehensive income for the period   310,179 - - -
Repayment of surplus   (6,192) - - -
Capital contribution   143,473 183,633 228,133 254,029
Capital withdrawal   (38,473) (5,217) (24,270) (24,053)
Other   - - - -
Total Changes in Taxpayers' Funds   408,987 178,416 203,863 229,976

Balance at 30 June

         
General funds   4,002,059 4,286,623 4,205,922 4,435,898
Revaluation reserve   6,990,486 6,596,874 6,990,486 6,990,486
Other reserves   - - - -
Taxpayers' Funds Closing Balance   10,992,545 10,883,497 11,196,408 11,426,384

Forecast Statement of Financial Position as at 30 June 2011#

Forecast Statement of Financial Position as at 30 June 2011 - Education
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   21,119 30,305 40,748 34,692
Debtors and other receivables 3 55,752 22,211 22,211 22,211
Prepayments   34,058 26,672 26,672 26,672
Inventories   - - - -
Other current assets   - - - -
Total Current Assets   110,929 79,188 89,631 83,575

Non-current Assets

         
Property, plant and equipment 4 10,916,387 10,832,402 11,132,039 11,361,205
Intangible assets 5 29,914 34,208 32,312 39,178
Other non-current assets   40,242 35,428 40,242 40,242
Total Non- current Assets   10,986,543 10,902,038 11,204,593 11,440,625
Total Assets   11,097,472 10,981,226 11,294,224 11,524,200

Liabilities

         

Current Liabilities

         
Creditors and other payables   82,081 81,162 81,162 81,162
Repayment of surplus   6,192 - - -
Employee entitlements   12,607 10,387 12,607 12,607
Other current liabilities   - - - -
Total Current Liabilities   100,880 91,549 93,769 93,769

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   4,047 6,180 4,047 4,047
Other non-current liabilities   - - - -
Total Non-current Liabilities   4,047 6,180 4,047 4,047
Total Liabilities   104,927 97,729 97,816 97,816

Taxpayers' Funds

         
General funds   4,002,059 4,286,623 4,205,922 4,435,898
Revaluation reserve   6,990,486 6,596,874 6,990,486 6,990,486
Other reserves   - - - -
Total Taxpayers' Funds   10,992,545 10,883,497 11,196,408 11,426,384
Total Liabilities and Taxpayers' Funds   11,097,472 10,981,226 11,294,224 11,524,200

Statement of Forecast Cash Flows for the year ending 30 June 2011#

Statement of Forecast Cash Flows for the year ending 30 June 2011 - Education
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   1,598,228 1,661,696 1,735,818 1,797,138
Department(s)   4,276 3,249 2,643 3,436
Other   12,397 10,456 7,672 5,956
Interest   - - - -

Payments to:

         
Suppliers   (249,011) (248,818) (240,769) (313,034)
Employees   (187,060) (190,954) (193,141) (193,398)
Capital charge   (793,243) (808,744) (827,115) (844,415)
Goods and services tax (net)   - - (4,363) -
Other operating activities   - - - -
Net Cash from Operating Activities 6 385,587 426,885 480,745 455,683

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   35,801 18,777 20,877 20,877
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (530,509) (608,226) (666,187) (693,534)
Intangible assets   (13,530) (13,477) (13,477) (19,058)
Other non-current assets   - - - -
Net Cash from Investing Activities   (508,238) (602,926) (658,787) (691,715)

Cash Flow from Financing Activities

         
Capital contribution   143,473 183,633 228,133 254,029
Other financing cash inflows   - - - -
Repayment of surplus   (17,084) - (6,192) -
Capital withdrawal   (38,473) (5,217) (24,270) (24,053)
Other financing cash outflows   - - - -
Net Cash from Financing Activities   87,916 178,416 197,671 229,976
Net Increase / (Decrease) in Cash   (34,735) 2,375 19,629 (6,056)
Cash at the beginning of the year   55,854 27,930 21,119 40,748
Cash at the end of the year   21,119 30,305 40,748 34,692

Statement of Significant Assumptions#

These prospective financial statements have been compiled on the basis of government policies and the Ministry of Education's Output Plan as agreed with the Minister of Education and the Minister for Tertiary Education at the time the statements were finalised. These prospective financial statements have been prepared on a going concern basis.

The main assumptions are as follows:

  • The department's activities will remain substantially the same as for the previous year.
  • Operating costs are based on historical experience. The general historical pattern is expected to continue.
  • Estimated year end information for 2009/10 is used as the opening position for the 2010/11 forecasts.

These assumptions are adopted as at 19 April 2010.

In preparing these financial statements the Ministry has made estimates and assumptions concerning the future. These estimates and judgements may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the forecast financial statements and the 2010/11 actual financial statements include:

  • revaluation of school sector land and buildings at the end of June 2010 may significantly alter the value on the Ministry balance sheet, which would in turn change the capital charge and depreciation expense for the year
  • potential impairment of some school sector buildings after fully assessing the impact of defective buildings on the value of the portfolio may also significantly alter the value on the Ministry balance sheet, which in turn may change the depreciation expense for the year
  • the timing of disposal of surplus school sector property assets may affect revenue and expenditure and capital withdrawals related to the sale
  • economic conditions may affect assumptions used to calculate employee entitlement provisions
  • the impact of some of the new policies and savings across specific Ministry outputs may differ from the initial estimates after full details of implementation have been worked out, and
  • further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Statement of Entity-Specific Accounting Policies#

The Ministry of Education has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting Entity

These are the prospective financial statements of Ministry of Education, prepared in accordance with section 38 of the Public Finance Act 1989.

Ministry of Education is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Ministry of Education is a public benefit entity.

Authorisation Statement

These forecast financial statements were authorised for issue by the Secretary for Education on 19 April 2010. The Secretary for Education is responsible for the forecast financial statements presented, including the appropriateness of the assumptions underlying the forecast financial statements and all other required disclosures.

Specific Accounting Policies

These prospective financial statements of the Ministry of Education have been prepared in accordance with the requirements of the Public Finance Act 1989, which includes the requirement to comply with New Zealand generally accepted accounting practices (NZ GAAP).

These prospective financial statements of the Ministry of Education have been prepared in accordance with, and comply with, NZ IFRS as appropriate for public benefit entities.

The measurement base applied is historical cost adjusted for revaluations of assets. Revaluations are made to reflect the forecast service potential or economic benefit to be obtained through the control of assets.

Statutory Base

The prospective financial statements for the Ministry of Education are prepared pursuant to section 38 of the Public Finance Act 1989.

Property, Plant and Equipment

Property, plant and equipment are stated at the lower of cost less accumulated depreciation and net realisable value, except in the case of school buildings, which are stated at cost or valuation less accumulated depreciation.

School buildings are stated at fair value as determined by an internal valuation process. Fair value is determined using optimised depreciated replacement cost. Early childhood education centre buildings (playcentres and kindergartens) are valued based on depreciated replacement cost. Valuations are conducted on an annual basis.

School land, early childhood education land, house land and houses are recorded at market value, as assessed by an independent registered valuer. Valuations are conducted on an annual basis.

Additions between valuations are recorded at cost.

The capitalisation threshold for property, plant and equipment is $2,500.

Depreciation

Depreciation, on other than freehold land and assets under construction, is provided on a straight line basis at rates that will write off the cost or valuation of the assets, less their estimated residual values, over their estimated useful lives.

The estimated useful lives of property, plant and equipment are:

  • Permanent school building roof, services, fitouts, lifts and boilers - 15 to 45 years.
  • Relocatable classrooms - 40 years.
  • Ancillary buildings, covered ways, houses, kindergartens, playcentres, site improvements, swimming pools - 30 to 50 years.
  • Permanent school building fabric - 75 years.
  • Motor vehicles - 4 years.
  • Plant and equipment - 3 to 8 years.

Intangible Assets

The estimated useful lives of intangible assets are:

  • Computer software - 3 to 5 years.

The capitalisation threshold for intangible assets is $2,500.

Properties Intended for Sale

Assets identified as surplus are recorded at the lower of carrying value at the date the asset is designated as surplus, and net realisable value.

Cost Allocation

All costs are charged to activities or projects. Direct costs are charged directly to non-overhead activities or projects. Indirect costs are charged to overhead activities. Costs in overhead activities are then ascribed to non-overhead activities based on cost drivers.

Criteria for Direct and Indirect Costs - direct costs are those costs charged directly to a non-overhead activity. Indirect costs are those overhead costs that cannot be identified with a specific output in an economically feasible manner, and are charged to an overhead activity.

Direct Costs Assigned to Outputs - non-overhead activities are mapped directly to outputs. Costs in these activities are therefore assigned directly to the relevant outputs. This includes costs related to the provision of school sector property.

Basis for Assigning Indirect and Corporate Costs to Outputs - indirect costs are assigned to non-overhead activities, and thereby to outputs, on the basis of direct personnel costs captured within the non-overhead activity.

Notes to the Financial Statements#

Note 1 - Other Revenue
Note 1 - Other Revenue - Education
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
School house rentals 4,116 4,000 3,186 3,200
Sundry rentals 213 250 271 300
Sale of learning materials 167 250 130 200
Special education 756 450 600 600
Receipts from property disposal - 4,000 - -
Miscellaneous revenue 1,731 506 1,769 1,656

Total other revenue

6,983 9,456 5,956 5,956

Note 2 - Operating Expenses#

Note 2 - Operating Expenses - Education
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Consultants' fees 3,599 3,500 3,500 3,500
Overseas travel 599 720 479 500
Domestic travel 9,850 11,500 6,597 6,900
Contracts for services 73,151 85,000 70,713 89,200
Special education payments 75,396 75,000 76,756 80,800
Operating lease rental 18,429 18,500 19,134 29,300
Maintenance of school land and buildings 28,487 21,000 28,651 67,000
Other 27,785 32,315 42,774 34,237

Total operating expenses

237,296 247,535 248,604 311,437

Note 3 - Debtors and Other Receivables#

Note 3 - Debtors and Other Receivables - Education
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Debtor Crown 48,218 15,600 15,600 15,600
Debtors other 7,534 6,611 6,611 6,611

Total debtors and other receivables

55,752 22,211 22,211 22,211

Note 4 - Property, Plant and Equipment#

Note 4 - Property, Plant and Equipment - Education
  Land
$000
Buildings
$000
Leasehold improvements
$000
Furniture/office equipment
$000
Other
$000
Total
$000

Cost or revaluation

           
Balance as at 1 July 2010 2,800,143 8,717,328 - 42,724 49,598 11,609,793
Additions by purchase 47,000 634,328 - 4,062 8,144 693,534
Additions internally developed - - - - - -
Revaluation increase - - - - - -
Transfers between classes - - - - - -
Disposals (8,700) (11,300) - - (3,144) (23,144)

Balance as at 30 June 2011

2,838,443 9,340,356 - 46,786 54,598 12,280,183

Accumulated depreciation and impairment losses

           
Balance as at 1 July 2010 - 418,016 - 27,353 32,385 477,754
Depreciation expense - 431,270 - 4,619 7,602 443,491
Eliminate on disposal - - - - (2,267) (2,267)
Eliminate on revaluation - - - - - -
Transfers between classes - - - - - -
Impairment losses - - - - - -

Balance as at 30 June 2011

- 849,286 - 31,972 37,720 918,978

Carrying amount as at 30 June 2011

2,838,443 8,491,070 - 14,814 16,878 11,361,205

Note 5 - Intangible Assets#

Note 5 - Intangible Assets - Education
  Acquired software
$000
Internally
generated software
$000
Other
$000
Total
$000

Cost

       
Balance as at 1 July 2010 - - 86,043 86,043
Additions by purchase - - - -
Additions internally developed - - 19,058 19,058
Disposals - - - -

Balance as at 30 June 2011

- - 105,101 105,101

Accumulated amortisation and impairment losses

       
Balance as at 1 July 2010 - - 53,731 53,731
Amortisation expense - - 12,192 12,192
Disposals - - - -
Impairment losses - - - -

Balance as at 30 June 2011

- - 65,923 65,923

Carrying amount as at 30 June 2011

- - 39,178 39,178

Note 6 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2011#

Note 6 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2011 - Education
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Net Surplus/(Deficit)

6,192 - - -

Add/(Less) non-cash items

       
Depreciation and amortisation expense 411,648 425,885 442,135 455,683
Increase in non-current employee entitlements (1,037) - - -

Total non-cash items

410,611 425,885 442,135 455,683

Add/(less) items classified as investing or financing activities

       
(Gains)/losses on disposal, plant and equipment 69 - - -

Total items classified as investing or financing activities

69 - - -

Add/(less) movements in working capital items

       
(Inc)/Dec in debtors and other receivables (26,691) 1,000 32,407 -
(Inc)/Dec in prepayments (859) - - -
Inc/(Dec) in creditors and other payables (4,858) - 6,203 -
Inc/(Dec) in employee entitlements 1,123 - - -

Net movements in working capital items

(31,285) 1,000 38,610 -

Add/(less) movements in non-current liabilities

       
Inc/(Dec) in employee entitlements   - - -

Net cash from operating activities

385,587 426,885 480,745 455,683

Forecast Financial Statements Education Review Office#

Statement of Forecast Comprehensive Income for the year ending 30 June 2011

Statement of Forecast Comprehensive Income for the year ending 30 June 2011 - Education Review Office
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   28,675 27,959 28,052 28,141
Department(s)   734 803 453 450
Other revenue   47 40 40 40
Gains   - - - -
Interest   - - - -
Total Income   29,456 28,802 28,545 28,631

Expenses

1        
Personnel   20,961 20,971 20,192 20,075
Operating   7,265 6,462 6,807 6,686
Depreciation and amortisation   1,114 1,253 1,073 1,251
Capital charge   79 116 269 269
Finance costs   - - - -
Other   11 - - -
Total Expenses   29,430 28,802 28,341 28,281
Net Surplus / (Deficit)   - - 204 350
Other comprehensive income   - - - -
Total Comprehensive Income   26 - 204 350

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011 - Education Review Office
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   3,598 3,598 3,598 3,572
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   3,598 3,598 3,598 3,572

Changes in Taxpayers' Funds

         
Comprehensive income for the period   26 - 204 350
Repayment of surplus   (26) - (204) (350)
Capital contribution   - - - -
Capital withdrawal   - (26) (26) -
Other   - - - -
Total Changes in Taxpayers' Funds   - (26) (26) -

Balance at 30 June

         
General funds   3,598 3,572 3,572 3,572
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   3,598 3,572 3,572 3,572

Forecast Statement of Financial Position as at 30 June 2011#

Forecast Statement of Financial Position as at 30 June 2011 - Education Review Office
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   4,523 3,160 3,000 3,328
Debtors and other receivables   141 230 230 230
Prepayments   147 100 100 100
Inventories   - - - -
Other current assets   - - - -
Total Current Assets   4,811 3,490 3,330 3,658

Non-current Assets

         
Property, plant and equipment   3,364 3,361 3,370 3,139
Intangible assets   293 1,074 976 856
Other non-current assets   - - - -
Total Non- current Assets   3,657 4,435 4,346 3,995
Total Assets   8,468 7,925 7,676 7,653

Liabilities

         

Current Liabilities

         
Creditors and other payables   2,033 1,986 990 840
Repayment of surplus   26 - 204 350
Employee entitlements   1,359 1,096 1,368 1,329
Other current liabilities   - - - -
Total Current Liabilities   3,418 3,082 2,562 2,519

Non-current Liabilities

         
Provisions   36 - - -
Employee entitlements   1,416 1,271 1,542 1,562
Other non-current liabilities   - - - -
Total Non-current Liabilities   1,452 1,271 1,542 1,562
Total Liabilities   4,870 4,353 4,104 4,081

Taxpayers' Funds

         
General funds   3,598 3,572 3,572 3,572
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   3,598 3,572 3,572 3,572
Total Liabilities and Taxpayers' Funds   8,468 7,925 7,676 7,653

Statement of Forecast Cash Flows for the year ending 30 June 2011#

Statement of Forecast Cash Flows for the year ending 30 June 2011 - Education Review Office
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   28,675 27,959 28,052 28,141
Department(s)   838 803 334 450
Other   33 40 53 40
Interest   - - - -

Payments to:

         
Suppliers   (7,088) (6,464) (7,839) (6,836)
Employees   (20,603) (21,216) (20,057) (20,094)
Capital charge   (82) (116) (252) (269)
Goods and services tax (net)   - - - -
Other operating activities   - - - -
Net Cash from Operating Activities 2 1,773 1,006 291 1,432

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   204 100 333 100
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (1,190) (900) (1,143) (750)
Intangible assets   (12) (300) (952) (250)
Other non-current assets   - - - -
Net Cash from Investing Activities   (998) (1,100) (1,762) (900)

Cash Flow from Financing Activities

         
Capital contribution   - - - -
Other financing cash inflows   - - - -
Repayment of surplus   - - (26) (204)
Capital withdrawal   - (26) (26) -
Other financing cash outflows   - - - -
Net Cash from Financing Activities   - (26) (52) (204)
Net Increase / (Decrease) in Cash   775 (120) (1,523) 328
Cash at the beginning of the year   3,748 3,280 4,523 3,000
Cash at the end of the year   4,523 3,160 3,000 3,328

Statement of Significant Assumptions#

These forecast financial statements have been compiled on the basis of existing government policies and Ministerial expectations at the time the statements were finalised.

The main assumptions are as follows:

  • ERO's activities will remain substantially the same as for the previous year.
  • Personnel costs are based on 226 full time equivalents.
  • Operating costs are based on historical experience adjusted for any known expected increase in expenditure items.
  • Estimated year end information for 2008/09 is used as the opening position for the 2009/10 forecasts.

These assumptions are adopted as at 15 April 2010.

Factors that could lead to material differences between the forecast financial statements and the 2009/10 actual financial statements include changes to the baseline budget through new initiatives, or technical adjustments.

Statement of Entity-Specific Accounting Policies#

The Education Review Office (ERO) has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting Entity

These are the prospective financial statements of ERO, prepared in accordance with section 38 of the Public Finance Act 1989.

ERO is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting ERO is a public benefit entity.

Authorisation Statement

These forecast financial statements were authorised for issue by the Chief Review Officer on 15 April 2010. The Chief Review Officer is responsible for the forecast financial statements presented, including the appropriateness of the assumptions underlying the forecast financial statements and all other required disclosure.

Specific Accounting Policies

Property, Plant and Equipment

Capitalisation thresholds applied are set out as follows:

  • Computer hardware - $1,000.
  • Motor vehicles - $500.
  • Office equipment - $1,000.
  • Leasehold improvements - $1,500.
  • Furniture and fittings - $1,500.

The estimated useful life and associated depreciation rates applied to each class of fixed assets are as follows:

  • Computer hardware - 2.5 years to 4 years, 25% to 40%.
  • Motor vehicles - 4 years to 5 years, 20% to 25%.
  • Office equipment - 5 years, 20%.
  • Leasehold improvements - 10 years, 10%.
  • Furniture and fittings - 10 years, 10%.

Intangible Assets

Capitalisation thresholds applied are set out as follows:

  • Computer software - $1,000.
  • Review procedures - $20,000.

The estimated useful life and associated amortisation rates applied to intangible assets are as follows:

  • Computer software - 4 years, 25%.
  • Review procedures - 5 years, 20%.

Cost Allocation

Direct costs are costs incurred by output delivery management units. Direct costs are attributed to outputs based on time spent on each output from ERO's time recording system.

Indirect costs are the costs of corporate management and support services which cannot be identified with a specific output in an economically feasible manner. Indirect costs are allocated to output-delivery management units (excluding Policy Services and Ministerial Services) through the most appropriate cost driver as a proxy for consumption.

The cost of Education Evaluation Reports includes a transfer of time from institutional reporting activities. This transfer represents time spent by review officers in institutions collecting overview information.

The costs of Policy Services and Ministerial Services are based on the estimated hours at the average charge-out rate.

Notes to the Financial Statements#

Note 1 - Operating Expenses
Note 1 - Operating Expenses - Education Review Office
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Operating expenses include:        
Consultancy 315 300 411 300
Fees paid to Auditors for Audit of Financial Reports 49 55 55 55
Domestic Travel 2,470 2,300 2,291 2,200
International Travel 83 80 83 80
Leasing and Rental 2,109 2,125 2,012 1,980
Other 2,239 1,602 1,955 2,071

Total operating expenses

7,265 6,462 6,807 6,686

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2011#

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2011 - Education Review Office
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Net Surplus (deficit)

26 - 204 350

Add/(less) non-cash items

       
Depreciation and amortisation expense 1,114 1,253 1,073 1,251
Total non-cash items
1,114 1,253 1,073 1,251

Add/(less) items classified as investing or financing activities

       
Net loss on sale of property, plant and equipment 11 - - -
Total items classified as investing or financing activities
11 - - -

Add/less movements in working capital items

       
(Inc)/ Dec in debtors and receivables 90 - (119) -
(Inc)/ Dec in prepayments (39) - 60 -
Inc/ (Dec) in creditors and payables 90 239 (927) (150)
Inc/ (Dec) in current provisions 123 (241) (135) -
Inc/ (Dec) in employee entitlements 228 (245) 9 (19)
Net movements in working capital items
492 (247) (1,112) (169)

Add/ (less) movements in non-current liabilities

       
(Inc)/ Dec in employee entitlements 130 - 126 -
Net movements in non-current liabilities
130 - 126 -

Net cash from operating activities

1,773 1,006 291 1,432

Forecast Financial Statements Ministry of Research, Science and Technology #

Statement of Forecast Comprehensive Income for the year ending 30 June 2011

Statement of Forecast Comprehensive Income for the year ending 30 June 2011 - Research, Science and Technology
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   14,247 13,587 13,527 22,214
Department(s)   231 204 204 204
Other revenue   88 - - -
Gains   - - - -
Interest   - - - -
Total Income   14,566 13,791 13,731 22,418

Expenses

         
Personnel   8,966 8,950 9,225 9,225
Operating 1 4,270 3,953 3,650 12,348
Depreciation and amortisation   675 707 675 664
Capital charge   181 181 181 181
Finance costs   - - - -
Other   13 - - -
Total Expenses   14,105 13,791 13,731 22,418
Net Surplus / (Deficit) 2 - - - -
Other comprehensive income   - - - -
Total Comprehensive Income   461 - - -

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011 - Research, Science and Technology
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   2,411 2,411 2,411 2,411
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   2,411 2,411 2,411 2,411

Changes in Taxpayers' Funds

         
Comprehensive income for the period   461 - - -
Repayment of surplus   (461) - - -
Capital contribution   - - - -
Capital withdrawal   - - - -
Other   - - - -
Total Changes in Taxpayers' Funds   - - - -

Balance at 30 June

         
General funds   2,411 2,411 2,411 2,411
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   2,411 2,411 2,411 2,411

Forecast Statement of Financial Position as at 30 June 2011#

Forecast Statement of Financial Position as at 30 June 2011 - Research, Science and Technology
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   3,359 3,012 2,826 3,145
Debtors and other receivables   124 84 52 52
Prepayments   7 - 7 7
Inventories   - - - -
Other current assets   - - - -
Total Current Assets   3,490 3,096 2,885 3,204

Non-current Assets

         
Property, plant and equipment   1,597 1,572 1,504 1,204
Intangible assets   332 468 429 410
Other non-current assets   - - - -
Total Non- current Assets   1,929 2,040 1,933 1,614
Total Assets   5,419 5,136 4,818 4,818

Liabilities

         

Current Liabilities

         
Creditors and other payables   1,965 2,305 1,825 1,825
Repayment of surplus   461 - - -
Employee entitlements   524 420 524 524
Other current liabilities   - - - -
Total Current Liabilities   2,950 2,725 2,349 2,349

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   58 - 58 58
Other non-current liabilities   - - - -
Total Non-current Liabilities   58 - 58 58
Total Liabilities   3,008 2,725 2,407 2,407

Taxpayers' Funds

         
General funds   2,411 2,411 2,411 2,411
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   2,411 2,411 2,411 2,411
Total Liabilities and Taxpayers' Funds   5,419 5,136 4,818 4,818

Statement of Forecast Cash Flows for the year ending 30 June 2011#

Statement of Forecast Cash Flows for the year ending 30 June 2011 - Research, Science and Technology
    2008/09 2009/10 2010/11
  Note Actual
$000
In 2009
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   14,247 13,587 13,527 22,214
Department(s)   214 204 276 204
Other   150 - - -
Interest   - - - -

Payments to:

         
Suppliers   (5,188) (3,953) (3,759) (12,348)
Employees   (8,810) (8,950) (9,225) (9,225)
Capital charge   (181) (181) (181) (181)
Goods and services tax (net)   96 - (31) -
Other operating activities   - - - -
Net Cash from Operating Activities 2 528 707 607 664

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   - - - -
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (285) (372) (321) (95)
Intangible assets   (95) (358) (358) (250)
Other non-current assets   - - - -
Net Cash from Investing Activities   (380) (730) (679) (345)

Cash Flow from Financing Activities

         
Capital contribution   - - - -
Other financing cash inflows   - - - -
Repayment of surplus   (175) (500) (461) -
Capital withdrawal   - - - -
Other financing cash outflows   - - - -
Net Cash from Financing Activities   (175) (500) (461) -
Net Increase / (Decrease) in Cash   (27) (523) (533) 319
Cash at the beginning of the year   3,386 3,535 3,359 2,826
Cash at the end of the year   3,359 3,012 2,826 3,145

Statement of Significant Assumptions#

These forecast financial statements have been compiled on the basis of existing government policies and Ministerial expectations at the time the statements were finalised.

The main assumptions are as follows:

  • The department's activities will remain substantially the same as for the previous year.
  • Personnel costs are based on 84 staff positions (84 full time equivalents).
  • Operating costs are based on historical experience. The general historical pattern is expected to continue [explain if this is not the case].
  • Estimated year end information for 2009/10 is used as the opening position for the 2010/11 forecasts.

These assumptions are adopted as at 1 April 2010.

Factors that could lead to material differences between the forecast financial statements and the 2010/11 actual financial statements include:

  • changes to the baseline budget through new initiatives, or technical adjustments
  • changes in the level of activity undertaken by the Ministry over the last three months.

Statement of Entity-Specific Accounting Policies#

The Ministry of Research, Science and Technology has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting Entity

These are the prospective financial statements of Ministry of Research, Science and Technology , prepared in accordance with section 38 of the Public Finance Act 1989.

Ministry of Research, Science and Technology is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Ministry of Research, Science and Technology is a public benefit entity.

Authorisation Statement

These forecast financial statements were authorised for issue by Ministry of Research, Science and Technology on 20 April 2010. The Ministry of Research, Science and Technology is responsible for the forecast financial statements presented, including the appropriateness of the assumptions underlying the forecast financial statements and all other required disclosure.

Specific Accounting Policies

Property, Plant and Equipment

Capitalisation thresholds applied are set out below.

  • IT Equipment / Hardware - $1,500
  • All other property, plant and equipment - $1,500

Depreciation

The estimated useful lives of property, plant and equipment are set out below.

  • Leasehold improvements - expected life of the lease (12 years at present)
  • IT Equipment / Hardware - 3 years
  • Furniture and office equipment - 5 years
  • Other categories - 5 years

Intangible Assets

Capitalisation thresholds applied are:

  • Purchased software - $1,500
  • Internally developed software - $1,500

The estimated useful lives of intangible assets are set out below:

  • Purchased software - 3 years
  • Internally developed software - 3 years

Cost Allocation

The Ministry has derived the costs of outputs using the cost allocation system outlined below:

  • Direct costs assigned to outputs - direct costs are charged directly to outputs.
  • Allocating indirect and corporate costs to outputs - indirect costs (including personnel directly applied but whose cost is pooled) are allocated by a proportion of budgeted direct staff time for each output.

'Direct costs' are those costs directly assigned to an output whereas 'indirect costs' are those costs that cannot be identified in an economically feasible manner with a specific output. Corporate costs are all costs incurred by the Ministry's service and support units.

Notes to the Financial Statements#

Note 1 - Operating Expenses
Note 1 - Operating Expenses - Research, Science and Technology
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Operating expenses include:        
Consultants' fees 490 500 500 500
Overseas travel 221 220 220 200
Domestic Travel 243 240 240 250
Transition costs related to amalgamation of MoRST and FRST - - - 6,900
Other 3,330 3,546 3,546 5,343

Total

4,284 4,506 4,506 13,193

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2011#

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2011 - Research, Science and Technology
  2008/09 2009/10 2010/11
  Actual
$000
In 2009
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Net surplus/(deficit) 461 - - -
Add/(less) non-cash items        
Depreciation and amortisation expense 675 675 675 664
Net foreign exchange (gains) / losses - - - -
Total non-cash items 675 675 675 664
Add/(less) items classified as investing or financing activities        
(Gains)/losses on disposal of property, plant and equipment 13 - - -
Total items classified as investing or financing activities 13 - - -
Add/(less) movements in working capital items        
(Inc)/Dec in receivables and prepayments 53 72 72 -
Inc/(Dec) in creditors and other payables (496) 488 488 -
Inc/(Dec) in current provisions (334) (597) (597) -
Inc/(Dec) in employee entitlements 122 - - -
Net movements in working capital (655) (37) (37) -
Add/(less) movements in non-current liabilities        
Inc/(Dec) in employee entitlements 34 - - -

Net cash from operating activities

528 638 638 664

Purpose of Information Supporting the Estimates#

The Information Supporting the Estimates provides members of Parliament with information on expected performance to:

  • support their examination of the appropriations and other authorities requested by the Government in the first Appropriation Bill for the forthcoming financial year, and
  • provide a basis against which they can later assess the actual performance of each individual department and Office of Parliament over that financial year.

The Information Supporting the Estimates is organised into 10 volumes 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 in consultation with the Finance and Expenditure Committee. The 10 sectors are:

  • Economic Development and Infrastructure Sector
  • Education and Science Sector
  • Environment Sector
  • External Sector
  • Finance and Government Administration Sector
  • Health Sector
  • Justice Sector
  • Māori, Other Populations and Cultural Sector
  • Primary Sector
  • Social Development and Housing Sector.

 

Votes and Departments in Each Sector#

Votes and Departments in Each Sector
Votes by Sector Departments by Sector

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

Vote Economic Development Ministry of Economic Development
Vote Commerce
Vote Communications
Vote Consumer Affairs
Vote Energy
Vote Tourism
Vote Transport Ministry of Transport
Vote Labour Department of Labour
Vote ACC
Vote Employment
Vote Immigration

Education and Science Sector - B.5A Vol.2

Vote Education Ministry of Education
Vote Education Review Office Education Review Office
Vote Research, Science and Technology Ministry of Research, Science and Technology
Vote Crown Research Institutes (this Vote is administered by the Treasury, which is in the Finance and Government Administration Sector.)

Environment Sector - B.5A Vol.3

Vote Environment Ministry for the Environment
Vote Climate Change
Vote Conservation Department of Conservation
Vote Local Government (this Vote is administered by the Department of Internal Affairs, which is in the Māori, Other Populations and Cultural Sector)
Vote Parliamentary Commissioner for the Environment Parliamentary Commissioner for the Environment

External Sector - B.5A 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 Veterans' Affairs - Defence Force
Vote Customs New Zealand Customs Service

Finance and Government Administration Sector - B.5A 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 State-Owned Enterprises
Vote Revenue Inland Revenue Department
Vote Ministerial Services (this Vote is administered by the Department of Internal Affairs, which is in the Māori, Other Populations and Cultural Sector)  
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Ombudsmen Office of the Ombudsmen
Vote Parliamentary Service Parliamentary Service
Vote Audit Office of the Auditor-General

Health Sector - B.5A Vol.6

Vote Health Ministry of Health

Justice Sector - B.5A 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.5A Vol.8

Vote Arts, Culture and Heritage Ministry for Culture and Heritage
Vote Sport and Recreation
Vote Statistics Statistics New Zealand
Vote National Archives Archives New Zealand
Vote National Library National Library of New Zealand
Vote Māori Affairs Te Puni Kōkiri
Vote Treaty Negotiations (this Vote is administered by the Ministry of Justice, which is in the Justice Sector)  
Vote Pacific Island Affairs Ministry of Pacific Island Affairs
Vote Women's Affairs Ministry of Women's Affairs
Vote Internal Affairs Department of Internal Affairs
Vote Community and Voluntary Sector
Vote Emergency Management
Vote Racing

Primary Sector - B.5A Vol.9

Vote Agriculture and Forestry Ministry of Agriculture and Forestry
Vote Biosecurity
Vote Food Safety
Vote Fisheries Ministry of Fisheries
Vote Lands Land Information New Zealand

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

Vote Social Development Ministry of Social Development
Vote Senior Citizens
Vote Veterans' Affairs - Social Development
Vote Youth Development
Vote Housing Department of Building and Housing

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 Public Finance Act 1989 (PFA) - unless it is expressly authorised by or under an Act of Parliament.

Each appropriation is allocated to, and managed as, one of six types of appropriation.

Limits Created by Appropriations#

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.

In most cases 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.

As generally accepted accounting practice does not normally treat GST as an expense, appropriation amounts also generally exclude GST. Prior to 2005/06, however, appropriations included applicable GST. All prior-year appropriation data, such as in the Summary of Trends table in the Estimates and the Summary of Financial Activity Table for each Vote in Information Supporting the Estimates - have been adjusted to exclude GST to allow appropriate comparison.

Responsibility for Appropriations#

Each appropriation is the responsibility of a designated Minister, who controls the right to use that appropriation within the limits authorised by Parliament. A department is also assigned to administer that appropriation in accordance with the Minister's wishes concerning its use.

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 six types of appropriation. Four appropriation types authorise the incurring of expenses; one type authorises the incurring of capital expenditure; and the remaining type authorises both.

These appropriation types can be further differentiated by whether the expenses or capital expenditure are departmental or non-departmental transactions.

Types of Appropriation
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 and Other Unrequited 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.

Examples include the Unemployment 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 for 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 mean that these are likely to be incurred only by Offices of Parliament.

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 and unrequited 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.

Types of Output Expense Appropriations#

A number of variations are possible for output expense appropriations. In particular, the constraint on the amount of expense that can be incurred is not always a fixed amount; and an output expense appropriation can cover more than one class of outputs.

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

Standard Output Expense Appropriations

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

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

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

Single output class only: The scope is limited to a single class of outputs (defined as a grouping of similar 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 the other types of output expense appropriation is not required.

Multi-Class Output Expense Appropriations (MCOA)

(section 7(3)(b), Public Finance Act 1989)

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

A proposed MCOA must be approved by the Minister of Finance before it is presented in the Estimates. The information supporting the Estimates must explain why the Minister has allowed those classes of outputs to be grouped in one appropriation.

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

Multiple output classes: The scope of an MCOA is determined by the combined scope of each of the output classes included in that appropriation.

Amount limited by Appropriation Act: The amount of an MCOA is limited to a set amount of NZ dollars specified in an Appropriation Act. The amount of expense that can be incurred in relation to each component output class is flexible within the total amount of the MCOA, although expenses must be separately forecast and reported for each individual class in the Estimates, Information Supporting the Estimates, Supplementary Estimates and the department's annual report.

Typical application: An MCOA is used where it is appropriate to give the responsible Minister or department ongoing discretion over the output mix across two or more classes of outputs. Such discretion will most commonly be sought where the output classes contribute to a common outcome, or use a common or closely related set of inputs or processes, and the circumstances that determine the appropriate output choice or mix are likely to vary during the appropriation period.

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 a class 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 class 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 output class only: The scope of an RDA is limited to a single class of outputs (defined as a grouping of similar 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 class of outputs, where the full cost of the outputs is met by external parties and not the Crown.

Department-to-Department Appropriation (DDA)

(section 20(2), Public Finance Act 1989)

Departmental only: Authorise a department or an Office of Parliament to incur expenses in supplying specified outputs (goods and services) paid for by another department.

Creation of a DDA requires an agreement between two departments. Implicitly it also requires the approval of the Minister who will become responsible for the appropriation - namely, the Minister responsible for the supplying department - as the agreement has implications for the scope and risk of that department's operations.

Annual or multi-year: The period of a DDA will depend on the negotiated terms of the agreement.

Single or multiple output class(es): The scope of a DDA (and hence whether it covers one or more classes of outputs) will depend on the way in which the agreement defines what is to be delivered. In most cases, an agreement that provides for a range of different outputs is better treated as creating several single-class DDAs.

Amount limited by departmental agreement: The amount of a DDA is limited to either the amount of revenue earned from the commissioning department, or the cost incurred by the supplying department in providing those outputs (if that cost is less than the amount of revenue earned under the agreement).

Typical application: DDAs are intended to make collaboration between departments easier by reducing the time and effort required to obtain / adjust the relevant appropriations while also allowing a commissioning department to retain full control over the resources it provides.

The use of a DDA is not confined to bilateral agreements. A set of related DDAs could be used to enable one department to co-ordinate and manage the work of several departments that must work together to contribute to providing an integrated service to third parties, or to pool contributions from several departments to enable another department to provide a specific service to or on behalf of those departments.

Appropriation Period#

The length of the appropriation period affects how appropriations are presented in the Estimates and Supplementary Estimates. 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 listed in the Estimates and Supplementary Estimates allow expenses or capital expenditure to be incurred only during a particular financial year. The annual amounts, for which parliamentary authority is being sought, are shown in bold type in Details of Annual and Permanent Appropriations in the Estimates and Supplementary Estimates for each Vote. The amounts for RDAs and annual DDAs are forecasts only, and so are not shown in bold type.
  • 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. The details of each MYA, including its commencement date and expiry date, are specified in Details of Multi-Year Appropriations in the Estimates and Supplementary Estimates for relevant Votes.
  • 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 that 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 or capital expenditure to be incurred for the purpose specified in the legislation “without further appropriation than this section”. Details of permanent appropriations are included in Details of Annual and Permanent Appropriations in the Estimates and Supplementary Estimates for each Vote for completeness, though the amount specified is a forecast rather than a limit. The amounts of permanent appropriations are therefore not shown in bold type. The scope of a permanent appropriation will reference the relevant section of the authorising legislation.

Guide to Reading Information Supporting theEstimates#

The Information Supporting the Estimates for each of the 10 sectors comprises five components, each of which is briefly described, below.

1 Sector Overview Information

The first component of the Information Supporting the Estimates may include a statement, agreed by all Ministers responsible for appropriations in each Vote included in the sector, that presents an overview of the sector and a high-level summary of the government's expectations and priorities. The Overview also includes Ministerial and Chief Executive Statements of Responsibility for the information provided in the Information Supporting the Estimates.

2 Performance Information Relating to Appropriations in Each Vote#

The second component of the Information Supporting the Estimates presents performance information relating to each appropriation.

Thetitle pages for each Vote specify the Minister(s) responsible for existing and proposed appropriations in the Vote, and the Responsible Minister for the department. The performance information meets the requirements of sections 15 and 41(1)(e) of the PFA and contains up to six parts. If particular information is not applicable to the Vote or a specific appropriation or type, or is otherwise unavailable, the relevant heading is not included.

Part 1 - Summary of the Vote

The Summary of the Vote comprises:

  • Part 1.1 Overview of the Vote - A plain-language summary of the focus of the appropriations through a brief explanation of the Vote. The Overview also appears at the start of the Vote in the Estimates.
  • Part 1.2 High-Level Objectives of the Vote - The objectives for the Vote presented through links and relationships and high-level priorities and outcomes to which they contribute. Where applicable, priorities and outcomes are drawn from the priorities and desired outcomes and published strategy documents. Links are also made to specific government strategies. Links may also be made to specific Government objectives.
  • Part 1.3 Trends in the Vote - A presentation of the actual and estimated trends in the Vote, comprising:
    • Summary of Financial Activity - A table showing financial information over the preceding five years (actual, budgeted or estimated actual), the current year (Budget) and the following three years (estimated) for the type of appropriations and Crown revenue and capital receipts.
    • New Policy Initiatives - A table showing how new initiatives (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.
    • 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 made in the Budget year. These changes are restated for the previous financial year to facilitate comparison.

Part 2 - Details and Expected Performance for Output Expenses#

This Part provides further detail about appropriations and expected performance for output expenses.

  • Part 2.1 Departmental Output Expenses - Intended impacts, outcomes and objectives are presented for departmental output expense appropriations in the Vote. This is followed by information on each appropriation, including its scope, a table showing expenses and revenue (distinguishing the revenue sources between the Crown and others), a statement of reasons for change in the appropriation (if material), and tables detailing performance measures and standards for significant aspects of expected output performance, any conditions on use of appropriation, any memorandum accounts (which record accumulated surpluses and deficits incurred in the provision of outputs on a full cost-recovery basis), and any current and past policy initiatives affecting the appropriation.
    • Information on impacts and outcomes or objectives to which the outputs contribute is provided. Further information on the relationships between outputs, impacts, and outcomes or objectives is outlined in Part 1.2 and the Statement of Intent. Conditions on use include administrative criteria and processes contained in legislation, regulation and Government decisions, which may be reference in scope statement or performance measures. 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.
    • For MCOA, an explanation is provided as to why the classes of outputs have been grouped under a single appropriation, and the scope statement, expenses and revenue, and performance information is presented for each output class.
    • Information provided for MYAs enables the original appropriation to be reconciled to the adjusted level if changes have been approved or are proposed, and the balance remaining to be derived taking account of actual or estimated expenses incurred to date.
    • The appropriation scope, expenses and revenue, and output performance measures and standards match information required to be included in a department's Statement of Forecast Service Performance with respect to departmental output expense appropriations used by the department.
  • Part 2.2 Non-Departmental Output Expenses - This sub-part contains comparable information to that presented in Part 2.1 on departmental output expense appropriations. The main differences are that details of third parties’ other revenue is not relevant and a summary of service providers is included.
    • The service providers table shows Crown entities and non-governmental organisations providing outputs funded through the Vote, and (where applicable) the mechanism for reporting actual performance to Parliament and the expiry of the Government's resource commitment. The reporting mechanisms are typically an entity's annual report or a report by the responsible Minister required by section 32A of the PFA. Where the provider is a Crown entity that is required to produce a Statement of Intent, its annual report may contain more detailed performance information at the output class or output level. ‘Section 32A' reports include a statement of service performance in relation to the appropriation.

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3 provides performance information about appropriations for benefits and other unrequited expenses incurred by the Crown. No departmental transactions arise under this appropriation type.

  • Part 3.2 Non-Departmental Benefits and Other Expenses - Information on each appropriation includes impacts and outcomes intended to be achieved, a scope statement, expense components, reasons for material changes, any conditions of use, and details of any current and past policy initiatives over the five years up to and including the Budget year.

Part 4 - Details for Borrowing Expenses#

This Part provides detail about appropriations for borrowing expenses. No departmental borrowing expense appropriations exist at present.

  • Part 4.2 Non-Departmental Borrowing Expenses - The set of performance information is the same as that for non-departmental benefits and other expenses, except that conditions on use are no specified.

Part 5 - Details and Expected Results for Other Expenses#

Part 5 provides detail about appropriations for:

  • Part 5.1 Departmental Other Expenses - It is uncommon for this category of appropriation to be utilised. In the few cases where it occurs, the performance information is the same as that for non-departmental other expense appropriations except for a summary of reporting mechanisms.
  • Part 5.2 Non-Departmental Other Expenses- Information on other expenses incurred by the Crown covers intended impacts and outcomes, appropriation scope, expenses analysed by component, reasons for material changes in the appropriation, expected results and standards, any conditions on use, any current and past policy initiatives, and a summary of mechanisms for reporting actual performance to Parliament.

Part 6 - Details and Expectations of Capital Expenditure#

This Part provides further details about appropriations for capital expenditure.

  • Part 6.1 Departmental Capital Expenditure - The purchase or development of assets by a department is made under a permanent appropriation authorised by section 24(1) of the PFA. Capital expenditure is defined in section 2 as the cost of assets acquired or developed, including tangible, intangible or financial assets, and any ownership interest in entities, but excluding inventories. The appropriation appears in the Vote that contains appropriations that are the responsibility of the department's Responsible Minister.
    • Information is provided on intended impacts and outcomes of the appropriation, its scope, expenditure analysed by standard asset categories, reasons for material changes in the appropriation, and expected results. The scope statement is in a standard form for all departments. The performance information relates to the department as a whole and is not limited to any specific capital injection.
  • Part 6.2 Non-Departmental Capital Expenditure - Performance information for capital expenditure incurred by the Crown is the same as that for departmental capital expenditure except for not detailing asset categories and the addition of any conditions on use of the appropriation, any current and past policy initiatives, and a summary of the mechanism for reporting to Parliament.
    • The scope statement indicates the form of interest or asset acquired by the Crown, such as a capital injection (equity), loan or shares.

The following table summarises the performance information that is required for a ‘standard' appropriation in each sub-part.

Summary of performance information that is required for a ?standard' appropriation
Standard Appropriations Part 2.1 Part 2.2 Part 3.1 Part 3.2 Part 4.1 Part 4.2 Part 5.1 Part 5.2 Part 6.1 Part 6.2
For each sub-part:                    
Intended impacts, outcomes or objectives
For each appropriation:                    
Scope of appropriation
Expenses and revenue N/A N/A N/A N/A N/A N/A N/A N/A N/A
Expenses N/A N/A N/A
Capital expenditure N/A N/A N/A N/A N/A N/A N/A N/A
Reasons for change in appropriation
Output performance measures and standards N/A N/A N/A N/A N/A N/A N/A N/A
Expected results N/A N/A N/A N/A N/A N/A
Conditions on use of appropriation N/A N/A N/A
Memorandum account N/A N/A N/A N/A N/A N/A N/A N/A N/A
Current and past policy initiatives N/A
Summary of service providers N/A N/A N/A N/A N/A N/A N/A N/A N/A
Reporting mechanism N/A N/A N/A N/A N/A N/A N/A

Information on reasons for change, conditions on use, current and past policy initiatives, and reporting mechanisms appears where applicable or material. Memorandum accounts are relevant only in Part 2.1. Some variations exist for non-standard appropriations, including MCOAs in Parts 2.1 and 2.2 and MYAs in Parts 2.1, 2.2, 5.2 and 6.2. Furthermore performance information may not be available for some appropriations.

3 Statement of Forecast Service Performance of Departments#

The third component of the Information Supporting the Estimates of Appropriations comprises the Statement of Forecast Service Performance for each department included in the sector, by reference to material already set out in Part 2.1 of Votes containing appropriations proposed to be used by the department.

4 Forecast Financial Statements of Departments#

The fourth component of the Information Supporting the Estimates begins with a Statement of Common Accounting Policies applicable to all departments. The forecast financial statements for the forthcoming financial year for each department covered by the sector includes a:

  • Statement of Forecast Comprehensive Income
  • Statement of Forecast Changes in Taxpayers' Funds
  • Forecast Statement of Financial Position
  • Statement of Forecast Cash Flows
  • Statement of Significant Assumptions.

Each department will include a Statement of Entity- Specific Accounting Policies detailing policies for any matters not addressed by the Statement of Common Accounting Policies (such as a “going concern” statement) or where its policies are more specific than the common policies (such as capitalisation thresholds and estimated useful lives of individual classes of assets). Notes to the Financial Statements provide additional details to assist interpretation of the accounts and to meet disclosure requirements outlined in legislation and accounting standards.

5 Statements of Intent of Departments#

The final component of the Information Supporting the Estimates presents the Statements of Intent of the departments covered by each sector. These statements contain the information required by section 40 of the PFA. They focus on the medium term and generally cover:

  • Nature and scope of the department's functions - A brief high-level description of the department's functions, addressing its role(s) and purpose and how it intends fulfilling them.
  • Strategic direction - impacts and outcomes - A brief high-level overview of the department's strategic direction covering both the impacts and outcomes the department is seeking to achieve (or contribute to) and the strategic environment in which the department operates through, in particular, its responses to the government's priorities.
  • Operating intentions - Information that describes how the department intends to achieve (or contribute to) those desired impacts and outcomes through its operations. This section should also include the main measures and standards the department will use to assess and demonstrate what it has achieved, including measures of outcome achievement, impact and cost effectiveness.
  • Managing in a changeable operating environment - Information on the risks to achievement of the desired outcomes and priorities, and the department's mitigation strategies.
  • Assessing organisational health and capability - The department's intentions for building and strengthening its internal capability, including its responses to the development goals for the State Services and its strategic approach to managing its asset base and forecast capital expenditure in the medium term. If capital expenditure is significant, it is in a separate section.
  • Additional information and statutory reporting requirements - As required either by the responsible Minister or Minister of Finance, or by specific legislation.

Terms and Definitions#

The table below contains terms that are used in the Estimates and the Information Supporting the Estimates.

Terms and Definitions
Appropriation An appropriation is a parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
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.
Crown revenue Revenue earned on behalf of the Crown. These flows are accounted for as revenue to the Crown rather than as departmental revenue.
DDA Department-to-department appropriations, which are authorised by section 20(2) of the Public Finance Act 1989.
Department Generally references to Departments also include an Office of Parliament as provided in section 26E(4) of the Public Finance Act 1989.
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.
MCOA Multi-class output expense appropriation.
MYA Multi-year appropriation.
N/A Not applicable.
Outcomes States or conditions of society, the economy or the environment, including changes in those states or conditions.
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).
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.
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.

The suite of Budget 2010 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2010. Documents providing guidance on the PFA and the public sector financial management system can be accessed in the Public Finance Overviews section of the Treasury's website: www.treasury.govt.nz/publications/guidance/publicfinance.

Ministerial Statements of Responsibility#

Each of us is satisfied that the information on future operating intentions provided by our respective departments and included in the Information Supporting the Estimates for the Education and Science Sector is in accordance with sections 38, 40 and 41 of the Public Finance Act 1989 and is consistent with the policies and performance expectations of the government.

Hon Anne Tolley
Responsible Minister for the Ministry of Education
Responsible Minister for the Education Review Office

19 April 2010

Hon Dr Wayne Mapp
Responsible Minister for the Ministry of Research, Science and Technology

19 April 2010

Chief Executive Statements of Responsibility#

Ministry of Education

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Education and Science Sector relating to the Ministry of Education and for the Vote for which the Ministry of Education is the administering department. Specifically, this information is contained in the Ministry of Education's statement of forecast service performance, forecast financial statements and statement of intent.

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2010/11 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Karen Sewell
Secretary for Education
Ministry of Education

16 April 2010

Tina Cornelius
Chief Financial Officer
Ministry of Education

16 April 2010

Education Review Office

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Education and Science Sector relating to the Education Review Office and for the Vote for which the Education Review Office is the administering department. Specifically, this information is contained in the Education Review Office's statement of forecast service performance, forecast financial statements and statement of intent.

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2010/11 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Graham Stoop
Chief Review Officer
Education Review Office

16 April 2010

James Kwing
Chief Financial Officer
Education Review Office

16 April 2010

Ministry of Research, Science and Technology

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Education and Science Sector relating to the Ministry of Research, Science and Technology and for the Vote for which the Ministry of Research, Science and Technology is the administering department. Specifically, this information is contained in the Ministry of Research, Science and Technology's statement of forecast service performance, forecast financial statements and statement of intent.

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2010/11 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Lesley Middleton
Acting Chief Executive for Research, Science and Technology
Ministry of Research, Science and Technology

16 April 2010

Geoff Palmer
Chief Financial Officer for Research, Science and Technology
Ministry of Research, Science and Technology

16 April 2010

Performance Information for Appropriations Vote Crown Research Institutes#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Research, Science and Technology (M56)

ADMINISTERING DEPARTMENT: The Treasury

MINISTER RESPONSIBLE FOR THE TREASURY: Minister of Finance

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Research, Science and Technology is responsible for appropriations in Vote Crown Research Institutes (CRIs) for the 2010/11 financial year totalling $1.074 million. This covers the purchase of advice on ownership, performance monitoring, and governance advice to the Minister of Research, Science and Technology and the Minister for Economic Development in respect of the CRIs, Research and Education Advanced Network New Zealand Ltd and New Zealand Venture Investment Fund Ltd monitored by the Treasury.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Crown Research Institutes
Government Priorities Government Outcomes Appropriations
Grow the New Zealand economy in order to deliver greater prosperity, security and opportunities for all New Zealanders. Build and retain scientific capability in New Zealand; enable public good science of general benefit to New Zealand; ensure that scientific capability boosts sector performance. Crown company monitoring advice to the Minister of RS&T and Minister for Economic Development.

Summary of Financial Activity

Summary of Financial Activity - Crown Research Institutes
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  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 970 1,028 1,062 997 924 924 1,074 - 1,074 1,074 1,074 1,074
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - 134 1,347 - 762 762 - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

970 1,162 2,409 997 1,686 1,686 1,074 - 1,074 1,074 1,074 1,074

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 18,000 803 887 9,303 9,730 9,730 N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

18,000 803 887 9,303 9,730 9,730 N/A - - - - -

Analysis of Significant Trends

The constant level of output expenditure in Vote CRI's shows the effective management of cost pressures. The Treasury's Crown Ownership Monitoring unit will also monitor the financial performance of REANNZ.

The variation in other expenditure reflects the one-off nature of these transactions. Appropriations enable the Crown to settle claims under indemnities and provisions provided to CRIs when they were established. More recently, all of the expenditure has been associated with reimbursing CRIs for the costs associated with cleaning up contaminated sites. While most of these contaminated sites have been cleaned up, there is ongoing groundwater testing at AgResearch's Invermay site and, potentially, other excluded liabilities that may arise in the future.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Crown Research Institutes
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: CRIs, REANNZ and NZVIF are financially viable, generate an adequate rate of return on shareholder funds and operate as a successful going concern.
Impact: CRIs, REANNZ and NZVIF build and retain scientific capability in New Zealand that contributes to economic growth.
Crown company monitoring advice to the Minister of RS&T and the Minister for Economic Development.

Crown Company Monitoring Advice to the Minister of Research, Science and Technology and the Minister for Economic Development (M56)

Scope of Appropriation

This appropriation is limited to the provision of ownership, performance monitoring, and governance advice to the Minister of Research, Science and Technology and other responsible Ministers in respect of the Ministers' shareholding responsibilities.

Expenses and Revenue

Expenses and Revenue - Crown Company Monitoring Advice to the Minister of Research, Science and Technology and the Minister for Economic Development (M56) - Crown Research Institutes
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 924 924 1,074
Revenue from Crown 913 913 1,063
Revenue from Other 11 11 11

Reasons for Change in Appropriation

Funding was transferred from Vote CRI to Vote State Owned Enterprises in 2009/10 to reflect additional activity and costs associated with integrating CCMAU and Treasury in monitoring activity into a new business unit the Crown Ownership Monitoring Unit (COMU).

Output Performance Measures and Standards

Output Performance Measures and Standards - Crown Company Monitoring Advice to the Minister of Research, Science and Technology and the Minister for Economic Development (M56) - Crown Research Institutes
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quality standards for Policy Advice (refer to conditions of use). Rated as satisfactory or higher (refer Conditions on Use of Appropriation) Not formally assessed Achieved
Ministerial Satisfaction with board appointments process and advice on governance and ownership. Achieved Achieved Achieved

Statement of Estimated and Forecast Net Worth of Entities Owned

The Minister for CRIs and the Minister for Economic Development are responsible Ministers for the Government's ownership interests in CRIs, REANNZ and NZVIF, respectively (the Minister of Finance is the other shareholding Minister). The estimated net worth (total assets less total liabilities) of CRIs, REANNZ and NZVIF, which are monitored under the auspices of Vote CRIs, are listed in the table below.

Changes in net worth result from the net effects of profit (after tax), dividends paid and capital injections or withdrawals. The data for these organisations are based on forecasts provided for inclusion in the 2010 Budget.

Statement of Estimated and Forecast Net Worth of Entities Owned - Crown Research Institutes
 

Balance date
2009
Actuals
$000
2010
Estimated Net Worth
$000
2011
Forecasted Net Worth
$000
Crown Research Institutes:        
AgResearch Ltd 30 June 195,115 195,115 195,115
Institute for Environmental Science & Research Ltd 30 June 32,776 32,776 32,776
Institute of Geological & Nuclear Sciences Ltd 30 June 20,386 20,386 20,386
Industrial Research Ltd 30 June 36,644 36,644 36,644
Landcare Research New Zealand Ltd 30 June 27,948 27,948 27,948
National Institute of Water & Atmospheric Research Ltd 30 June 84,657 84,657 84,657
New Zealand Forest Research Institute Ltd 30 June 26,208 26,208 26,208
The New Zealand Institute for Plant & Food Research Ltd 30 June 73,233 73,233 73,233
Crown Entities:        
New Zealand Venture Investment Fund Ltd 30 June 67,883 74,600 82,300
Research and Education Advanced Network of New Zealand Ltd 30 June 19,587 9,958 19,400

Conditions on Use of Appropriation

Policy standard ratings

In 2008/09 the Treasury commissioned an external review to assess the standard of policy advice on a sample of policy outputs provided during that financial year. That review established a benchmark against which to assess future performance. The Treasury intends to commission biennial reviews of the quality of its policy advice to provide an assessment of its performance against the standard.

Quality standards for policy advice

This Quality Standard for Policy Advice sets out the characteristics or dimensions of policy advice that will best enable it to promote well-informed high-quality decision-making by Ministers. However, the quality dimensions below are not a checklist and not all dimensions will be equally important in every case - judgements are required at the outset about how to apply and balance the quality dimensions to ensure a particular piece of advice is fit for purpose in achieving the result sought.

When undertaking a piece of work, explicit consideration needs to be given to the following:

  • What point are Ministers at in their decision-making process? Can Treasury add value? What are our opportunities to have an impact?
  • What result are we seeking by providing a piece of advice?
  • How should the quality dimensions below be applied and balanced to achieve this result?
  • What is the relative priority of this piece of work?
  • What level of investment is warranted?
Dimensions of quality policy advice
Dimensions of quality policy advice - Crown Research Institutes
Analytically rigorous (Analysis) Set in a wider strategic context (Applied analysis) Customer focused and persuasive (Advice)
Relevant frameworks
  • Appropriate analytical frameworks are used and, knowledge is up-to-date and informed by recent thinking and literature in the field.
  • Assumptions behind the frameworks used are explicit and consideration has been given to how they will be expected to play out in the real world (a world which includes information and transaction costs, market failure, government failure, etc).
  • Consideration has been given to less traditional frameworks and whether they would add innovative or useful perspectives.
Strategic
  • Advice is set in the context of the Treasury's results and informed by a strategic view about what is important.
  • We are explicit about the relative importance and materiality of the issue, in fiscal, economic and strategic terms.
  • Connections across policy issues are made, ensuring that Ministers receive a whole-of-government perspective.
  • Advice considers the long-term implications of decisions and provides a perspective that goes beyond immediate impacts.
  • We frame issues and help set the agenda.
Clear
  • Advice is compellingly presented. It is: brief and concise - key messages should be readily apparent to the reader.
  • Easy to read - has a clear and logical structure, avoids technical jargon and uses visual devices such as charts and tables where possible.
  • Pitched to suit the target audience - uses appropriate language, style and level of detail.
  • Framed in terms of how it fits with previous advice and communications with the Minister.
Robust reasoning and logic
  • Advice has a clear purpose, problem definition, evaluation of options against criteria, and assessment of risks and opportunities. We come to a conclusion and give action-oriented recommendations.
Practical
  • Issues of implementation, technical feasibility, practicality and timing are considered and advice accurately identifies compliance, transitional, legislative, revenue and administrative implications and costs.
Timely
  • Reports should meet Ministers' need for advice that helps in the decision-making process (even if it means, at times, that advice is not fully developed) and indicate when a decision is required.
Evidence-based
  • Analysis is supported by relevant evidence: Empirical methods are sound, data gaps are identified and the level of confidence/certainty in our empirical base is explicit.
  • We draw on New Zealand experience of current and past policy interventions and, where relevant, the experience of other countries.
  • We give our best judgement despite data imperfections; we acknowledge information limitations and advise within them.
Public sector consultation
  • Ministers receive advice that enables them to engage with their colleagues on a fully informed basis because: thorough and timely consultation with other government departments has occurred and points of difference, and the reasons for these, are set out.
  • Where possible, advice is developed in conjunction with relevant government agencies.
Politically aware
  • Advice: demonstrates awareness of the wider environment and political situation.
  • Is based on a clear understanding of the desired outcomes of the Minister/ Government.
  • Relates to the perspectives of Ministers, even if suggesting something that tests those perspectives.
  • Recognises choices and constraints Ministers face, and includes a range of options to address these.
Free and frank
  • Our advice is honest, impartial and politically neutral - we have a duty to alert Ministers to the possible consequences of following particular policies, whether or not such advice accords with Ministers' views. Good free and frank advice is offered with an understanding of its political context and the constraints within which the Minister is operating.
Perspectives of wider stakeholders
  • We understand and advise Ministers on the perspective of groups outside the public sector, consult with key stakeholders, and provide advice on communications where appropriate.
Solution focused
  • We are pro-active, anticipating, as well as responding to, Ministers' needs. Advice suggests a clear way forward ("Here is what you can do" as well as "Here is a problem") and includes a range of practical options (first best advice, but also second and third).

At the end:

  • Did we achieve the result we were seeking?
  • Were our judgements about what would be fit for purpose correct?
  • What would we do differently next time?
  • How can we capture and share this learning?

Performance Information for Appropriations Vote Education Review Office#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister Responsible for the Education Review Office (M27)

ADMINISTERING DEPARTMENT: Education Review Office

MINISTER RESPONSIBLE FOR EDUCATION REVIEW OFFICE: Minister Responsible for the Education Review Office

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister Responsible for the Education Review Office is responsible for appropriations in the Vote for the 2010/11 financial year covering the following:

  • a total of $26.084 million for reviews of early childhood education service providers, and schools and other education service providers, and
  • a total of $2.950 million for education evaluation reports, policy services, ministerial and contractual services.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Vote Education Review Office (ERO) contributes to the Government's vision for "a world leading education system that equips all New Zealanders with the knowledge, skills and values to be successful citizens in the 21st Century" by independently evaluating the quality of education and care in schools, early childhood education services and other education providers in the pre-tertiary education sector.

The education sector is committed to building strong learning foundations for literacy and numeracy, increasing the levels of educational attainment and maximising the value received from its services. This is reflected in the shared outcomes for education: "Every child has the opportunity to participate in high quality early childhood education"; "Every child achieves literacy and numeracy levels that enable their success"; "Every young person has the skills and qualifications to contribute to their and New Zealand's future"; "Relevant and efficient tertiary education provision that meets student and labour market needs"; and "Maori enjoying education success as Maori".

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Education Review Office
Government Priorities Government Outcomes Appropriations
The Government's vision is "a world leading education system that equips all New Zealanders with the knowledge, skills and values to be successful citizens in the 21st Century".
(Shared outcomes framework for the education sector)
  • Every child has the opportunity to participate in high quality early childhood education
  • Every child achieves literacy and numeracy levels that enable their success
  • Every young person has the skills and qualifications to contribute to their and New Zealand's future
  • Relevant and efficient tertiary education provision that meets student and labour market needs
  • Maori enjoying education success as Maori
(Shared outcomes framework for the education sector)
Accountability Reviews MCOA
  • Early Childhood Education Services output class
  • Schools and Other Education Service Providers output class
    Quality of Education Reports and Services

Summary of Financial Activity

Summary of Financial Activity - Education Review Office
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  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 28,381 28,739 28,560 29,430 28,945 28,341 29,034 - 29,034 29,034 29,034 29,034
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 1,336 987 736 1,202 2,095 2,095 1,000 - 1,000 1,000 1,000 1,000
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

29,717 29,726 29,296 30,632 31,040 30,436 30,034 - 30,034 30,034 30,034 30,034

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 - - - - -

New Policy Initiatives

Budget Policy Intiatives - Education Review Office
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Cessation of adult and community education reviews Schools and Other Education Service Providers output class (137) and outyears        
Cessation of post-review assistance workshops to schools   (207) and outyears        
Reduction in the number of homeschooling education reviews   (283) and outyears        
Total Initiative   (627) and outyears        

Analysis of Significant Trends

Total Vote: All Appropriations

Vote ERO contains appropriations for departmental output expenses and capital expenditure.

Departmental output expense appropriation levels for outputs supplied by ERO was increased:

  • in 2005/06 for maintaining capability in the face of increased input costs and for improved review coverage of schools and early childhood services
  • in 2005/06 to 2008/09 for maintaining capability to recruit and retain appropriately skilled review officers in the face of increases in teaching salaries.

In line with the Government's priorities for 2009/10 the above increases were offset by decreases in departmental output expense appropriation levels for:

  • cessation of adult and community education reviews
  • cessation of post-review assistance workshops to schools
  • reduction in the number of homeschooling education reviews.

There are no significant trends in capital expenditure appropriation levels.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Education Review Office
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Education Sector Outcome
  • Every child has the opportunity to participate in high quality early childhood education
  • Every child achieves literacy and numeracy levels that enable their success
  • Every young person has the skills and qualifications to contribute to their and New Zealand's future
  • Relevant and efficient tertiary education provision that meets student and labour market needs
  • Maori enjoying education success as Maori
Impact
Improve the quality of education provided by schools and early childhood services. ERO's independent evaluations will inform the decisions made to improve student achievement, the quality of teaching and learning, governance, self-review, and leadership.
Accountability Reviews MCOA
  • Early Childhood Education Services output class
  • Schools and Other Education Service Providers output class
Education Sector Outcome
  • Every child has the opportunity to participate in high quality early childhood education
  • Every child achieves literacy and numeracy levels that enable their success
  • Every young person has the skills and qualifications to contribute to their and New Zealand's future
  • Relevant and efficient tertiary education provision that meets student and labour market needs
  • Maori enjoying education success as Maori
Impact
ERO's system-wide evaluations provide independent information and advice on the development and implementation of education policy and practice.
Quality of Education Reports and Services

Accountability Reviews MCOA (M27)

Scope of Appropriation

Early Childhood Education Services
This output class is limited to evaluations of the performance of early childhood education services.
Schools and Other Education Service Providers
This output class is limited to evaluations of the performance of schools and other education service providers.

Explanation for Use of Multi-Class Output Expense Appropriation

From 2006/07 a multi-class output expense appropriation called Accountability Reviews was established. This multi-class output expense appropriation aggregates output classes Early Childhood Education Services and Schools and Other Education Service Providers that deliver the same service (education reviews) to two different parts of the education sector (early childhood education services and schools). Both of the output classes use similar resources in working toward the same outcome of ensuring delivery of the highest quality pre-tertiary education to all young New Zealanders. Grouping these will recognise this alignment and allow for more flexibility in resourcing levels across the two.

Expenses and Revenue

Expenses and Revenue - Accountability Reviews MCOA (M27) - Education Review Office
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

26,017 25,473 26,084
Early Childhood Education Services 9,230 9,071 10,200
Schools and Other Education Service Providers 16,787 16,402 15,884

Revenue from Crown

25,605 25,605 25,672
Early Childhood Education Services 9,114 9,114 10,084
Schools and Other Education Service Providers 16,491 16,491 15,588

Revenue from Other

412 240 412
Early Childhood Education Services 116 85 116
Schools and Other Education Service Providers 296 155 296

Reasons for Change in Appropriation

The change in appropriation levels between output classes reflect the latest forecasts in output activities.

Output Performance Measures and Standards

Output Performance Measures and Standards - Accountability Reviews MCOA (M27) - Education Review Office
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Early Childhood Education Services output class

     
Number of early childhood education services education reviews 1,215-1,375 1,215-1,375 1,240-1,400
Education reviews of early childhood education services are consistent with approved standard procedures for reporting to the Minister 100% 100% 100%
Education review reports of early childhood education services will pass a quality assurance check for reporting to the Minister 100% 100% 100%
Unconfirmed (near final) reports sent to early childhood education services for confirmation of accuracy and comment will meet target for reporting to the Minister (% within working days of the end of the last week on site) 75% within 20 days
85% within 25 days
98% within 35 days
75% within 20 days
85% within 25 days
98% within 35 days
75% within 20 days
85% within 25 days
98% within 35 days
Number of post-review assistance workshop to early childhood education services 80-120 80-120 80-120

Schools and Other Education Service providers output class

     
Number of state schools education reviews 760-890 760-890 710-840
Number of homeschooling education reviews 25-35 25-35 25-35
Number of private school education reviews 35-45 35-45 35-45
Education reviews of schools and other education service providers are consistent with approved standard procedures for reporting to the Minister 100% 100% 100%
Education reviews of schools and other education service providers will pass a quality assurance check for reporting to the Minister 100% 100% 100%
Unconfirmed (near final) reports sent to schools and other education service providers for confirmation of accuracy and comment will meet target for reporting to the Minister (% within working days of the end of the last week on site) 75% within 20 days
85% within 25 days
98% within 35 days
75% within 20 days
85% within 25 days
98% within 35 days
75% within 20 days
85% within 25 days
98% within 35 days

ERO recognises an education review as an output at the time it is available for delivery to the Minister responsible for the Education Review Office. Partially complete reports are not reported.

The standard procedures describe the processes to be followed, the evaluation indicators to be used, and the accepted principles of good practice for conducting reviews. The standard procedures set out quality standards relating to the investigation and reporting processes, and to the content, presentation and timeliness of reports. They also describe the quality management procedures to be applied systematically within ERO.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Accountability Reviews MCOA (M27) - Education Review Office
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Cessation of adult and community education reviews 2009/10 (137) and outyears        
Cessation of post-review assistance workshops to schools 2009/10 (207) and outyears        
Reduction in the number of homeschooling education reviews 2009/10 (283) and outyears        

Previous Government

           
Maintaining capability for recruiting and retaining appropriately skilled review officers following increases in teaching salaries 2008/09          
  • Early Childhood Education Services
  314 and outyears        
  • Schools and Other Education Service Providers
  535 and outyears        

Quality of Education Reports and Services (M27)#

Scope of Appropriation

This appropriation is limited to the provision of national education evaluation reports, policy services, ministerial and contractual services.

Expenses and Revenue

Expenses and Revenue - Quality of Education Reports and Services (M27) - Education Review Office
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,928 2,868 2,950
Revenue from Crown 2,447 2,447 2,469
Revenue from Other 481 253 481

Reasons for Change in Appropriation

There have been minimal changes to this appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Quality of Education Reports and Services (M27) - Education Review Office
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of education evaluation reports 12-20 12-20 12-20
Education evaluation reports are consistent with approved presentational standards and agreed terms of reference 100% 100% 100%
Number of policy services 25-30 25-30 25-30
Policy services are consistent with approved presentational standards 100% 100% 100%
Number of ministerial services comprising of parliamentary questions, ministerial correspondence, briefing papers and official information requests 145-210 145-210 145-210
Ministerial services are consistent with Cabinet Office Manual and Minister's requirements 100% 100% 100%
Number of contractual services 5-10 5-10 5-10
Contractual services are consistent with terms of contracts 100% 100% 100%

Education evaluation reports evaluate educational issues including delivery of the curriculum, the effectiveness of governance, management structures and systems, student achievement, the delivery of teaching services, and barriers to learning across a number of institutions. Education evaluation reports may include guides to good practice. The information for these reports is gathered from the education reviews carried out by ERO.

Education evaluation reports tend to follow specific themes. These themes may be drawn from issues arising from the Government's education initiatives and issues of strategic importance identified by ERO from its regular reporting on schools and early childhood education services.

Policy services involve advice to, or on behalf of, the Minister responsible for the Education Review Office, on policy proposals or any other issues referred to, or identified by, the Chief Review Officer.

ERO is not primarily a provider of policy advice. From its regular presence in schools and early childhood services it is, however, in a position to make a useful contribution to assist the policy agencies. This service will contribute to the Government's policy priorities for schools and early childhood education service providers.

Contractual services include one-off reviews of institutions (or certain aspects of them), and analyses of particular matters under specific terms of reference agreed with ERO. Contractual reviews are conducted on a fee-for-service basis.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Quality of Education Reports and Services (M27) - Education Review Office
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Maintaining capability for recruiting and retaining appropriately skilled review officers following increases in teaching salaries 2008/09 57 and outyears        

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.1 Departmental Capital Expenditure - Education Review Office
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Purchase of assets to maintain and upgrade capability essential to the operation of ERO Education Review Office - Capital Expenditure PLA

Education Review Office - Capital Expenditure PLA (M27)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Education Review Office Capital Expenditure PLA (M27) - Education Review Office
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,143 1,143 750
Intangibles 952 952 250
Other - - -

Total Appropriation

2,095 2,095 1,000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,143 1,143 750
Intangibles 952 952 250
Other - - -

Total Appropriation

2,095 2,095 1,000

Reasons for Change in Appropriation

The decrease in capital expenditure is mainly due to the timing of computer software purchases in 2009/10 carried forward from 2008/09.

Performance Information for Appropriations Vote Education#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Education (M26), Minister for Tertiary Education (M68)

ADMINISTERING DEPARTMENT: Ministry of Education

MINISTER RESPONSIBLE FOR MINISTRY OF EDUCATION : Minister of Education

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Education is responsible for appropriations in Vote Education for the 2010/11 financial year covering the following:

  • A total of nearly $1,793 million for services from the Ministry of Education (depreciation and capital charge on school accommodation and special education services being the most significant costs).
  • A total of nearly $386 million for educational services from central education Crown entities (New Zealand Qualifications Authority and Career Services) and other non-departmental providers. The most significant costs are for professional development in the schools and early childhood education sector and school transport services.
  • A total of nearly $52 million for allowances, bursaries, scholarships (including national study awards for teachers) and grants.
  • A total of just over $6,209 million for educational services from schools (including teacher salaries), early childhood education providers, and other education providers.
  • A total of nearly $25 million for capital for Crown entities and schools.
  • A total of nearly $713 million for capital expenditure by the Ministry of Education, mainly related to school sector property.

The Minister for Tertiary Education is responsible for appropriations in Vote Education for the 2010/11 financial year covering the following:

  • A total of nearly $14 million for services from the Ministry of Education.
  • A total of just over $2,214 million for student achievement component funding provided to tertiary education institutions, educational services from the Tertiary Education Commission and other non-departmental providers.
  • A total of nearly $22 million for tertiary scholarships, international education and other grants.
  • A total of nearly $541 million for educational services from tertiary education institutions (including capability and research funding), the adult and community education sector and other education providers, as well as other expenses.
  • A total of just over $2 million for capital for tertiary education institutions.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

The Ministry will focus on implementing a set of specific policies and programmes to deliver on six education outcomes determined by Government:

Increasing opportunity for children to participate in quality early childhood education.

  • Children need the opportunity to participate in early childhood education. Increased participation in target geographical areas and among groups with traditionally low participation rates will be the focus.

Every child achieves literacy and numeracy levels that enable their success.

  • Every child needs the opportunity to develop their literacy and numeracy skills and to be supported and enabled to make as much progress in developing these skills as they can.

Every young person has the skills and qualifications to contribute to their and New Zealand's future.

  • To keep young people engaged in education, a wider range of relevant learning options needs to be developed within schools and through partnerships between schools, training and tertiary education providers and local businesses. Schools must be supported to ensure they are responsive to the needs of every student.

Relevant and efficient tertiary education provision that meets student and labour market needs.

  • In the current financial context, tertiary education is critical to sustain and grow productivity and to support industry and employers in developing and retaining skilled employees.

Maori enjoying education success as Maori.

  • Identity, culture and Maori language are critical ingredients for the success of Maori students in education. Collaboration with schools and providers is essential to ensure they meet the educational needs of Maori students.

The Ministry is capable, efficient and responsive to achieve education priorities.

  • The performance of the Ministry needs to be continually improving so as to support outcomes for every student and ensure that expenditure produces the maximum benefits.

The departmental appropriations are focused primarily on strategic leadership of the sector and education system, management of the school sector property portfolio, support and resources for education providers, teachers and communities and interventions for target student groups. Non departmental funding is primarily used for early childhood education, primary and secondary schooling, tertiary education and research.

The table below shows how the Government priorities, education outcomes and the appropriations interconnect. Only the appropriations most significant in terms of expenditure, or impact, on each priority are listed.

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Education
Government Priorities Government Outcomes Appropriations
Developing the skills to enable citizens to reach their full potential and contribute to the economy and society.
Economic growth that delivers greater prosperity, security and opportunities for New Zealanders.
Increasing opportunity for children to participate in quality early childhood education

Departmental

Interventions for Target Student Groups (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for the Community (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)

Non-Departmental

Early Childhood Education (M26)
Early Childhood Grants (M26)
Every child achieves literacy and numeracy levels that enable their success

Departmental

Interventions for Target Student Groups (M26)
School Property Portfolio Management (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
Support and Resources for the Community (M26)

Non-Departmental

Curriculum Support (M26)
Primary Education (M26)
Professional Development and Support (M26)
Every young person has the skills and qualifications to contribute to their and New Zealand's future

Departmental

Interventions for Target Student Groups (M26)
School Property Portfolio Management (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
Support and Resources for the Community (M26)

Non-Departmental

Professional Development and Support (M26)
Schooling Improvement (M26)
Secondary Education (M26)
Tertiary Education: Student Achievement Component (M68)
Training for Designated Groups (M68)
Relevant and efficient tertiary education provision that meets student and labour market needs

Departmental

Strategic Leadership in the Tertiary System (M68)
Non-Departmental
Adult and Community Education (M68)
Centres of Research Excellence (M68)
International Education Programmes (M68)
Performance Based Research Fund (M68)
Tertiary Education Grants and Other Funding (M68)
Tertiary Education Organisation Component - Capability Fund (M68)
Tertiary Education: Student Achievement Component (M68)
Training for Designated Groups (M68)
Maori enjoying education success as Maori

Departmental

Interventions for Target Student Groups (M26)
School Property Portfolio Management (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
Support and Resources for the Community (M26)

Non-Departmental

Curriculum Support (M26)
Early Childhood Education (M26)
Primary Education (M26)
Provision of Information and Advisory Services (M26)
Secondary Education (M26)
Supporting Parenting (M26)
Tertiary Education: Student Achievement Component (M68)
Training for Designated Groups (M68)
The Ministry is capable, efficient and responsive to achieve education priorities

Departmental

Interventions for Target Student Groups (M26)
School Property Portfolio Management (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
Support and Resources for the Community (M26)

Non-Departmental

Early Childhood Education (M26)
Primary Education (M26)
School Transport (M26)
Secondary Education (M26)
Special Needs Support (M26)

Summary of Financial Activity

Summary of Financial Activity - Education
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  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 2,148,925 2,267,581 2,995,422 3,950,312 4,114,410 4,108,740 1,806,530 2,599,905 4,406,435 4,558,957 4,537,657 4,546,638
Benefits and Other Unrequited Expenses 68,764 72,521 67,202 73,009 72,796 72,296 N/A 73,288 73,288 80,203 71,635 71,790
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 6,194,316 6,575,567 6,499,984 6,370,399 6,812,098 6,807,816 - 6,750,126 6,750,126 6,637,043 6,698,734 6,755,426
Capital Expenditure 558,617 548,741 593,745 701,891 751,267 751,067 712,592 27,042 739,634 500,752 505,394 493,220
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

8,970,622 9,464,410 10,156,353 11,095,611 11,750,571 11,739,919 2,519,122 9,450,361 11,969,483 11,776,955 11,813,420 11,867,074

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 56,495 62,782 61,442 73,734 111,581 111,581 N/A 69,570 69,570 71,809 73,929 76,188
Capital Receipts 8,008 9,621 10,773 23,190 - - N/A 1,080 1,080 - - -

Total Crown Revenue and Capital Receipts

64,503 72,403 72,215 96,924 111,581 111,581 N/A 70,650 70,650 71,809 73,929 76,188

New Policy Initiatives

Budget Policy Intiatives - Education
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
20 Additional Medical Places Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
- 354 1,052 1,789 2,564
Additional Equivalent Full-Time Students - Tuition Subsidies Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
- 5,035 10,069 10,069 10,069
Additional Youth Guarantee Places Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
3,061 8,248 7,780 2,593 -
  Tertiary Education Organisation Component - Capability Fund (M68)
Non-Departmental Other Expense
539 1,452 1,370 457 -
Adjustment to Schools Operations Grant Funding Curriculum Support (M26)
Non-Departmental Output Expense
- 78 156 156 156
  Primary Education (M26)
Non-Departmental Other Expense
- 11,225 22,585 22,958 23,032
  Secondary Education (M26)
Non-Departmental Other Expense
- 8,623 17,212 17,250 17,192
  Special Needs Support (M26)
Non-Departmental Other Expense
- 2,174 4,341 4,353 4,368
Appropriation of Youth Guarantee Funding Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
8,310 14,504 12,380 12,380 12,380
  Tertiary Education Organisation Component - Capability Fund (M68)
Non-Departmental Other Expense
1,253 2,123 1,747 1,747 1,747
Assessment Tools to Support National Standards Support and Resources for Teachers (M26)
Departmental Output Expense
- 1,680 3,880 2,480 2,380
  Curriculum Support (M26)
Non-Departmental Output Expense
- 250 250 100 100
  Professional Development and Support (M26)
Non-Departmental Output Expense
- 250 250 500 500
Board of Trustees Training Professional Development and Support (M26)
Non-Departmental Output Expense
- 1,000 - - -
Capital Funding for School Maintenance and Improvement School Property Portfolio Management (M26)
Departmental Output Expense
657 4,249 1,960 - -
  Departmental capital injection 40,000 (20,000) (20,000) - -
Change of Class Applications for Seven Kura to Become Composite Secondary Education (M26)
Non-Departmental Other Expense
- 1,200 2,400 2,400 2,400
Classroom Release Time in Area Schools Primary Education (M26)
Non-Departmental Other Expense
- 2,100 4,200 4,200 4,200
Continuing the Kiwi Can Programme Curriculum Support (M26)
Non-Departmental Output Expense
- 300 300 300 300
Contribution to the Establishment and Operating Costs of the Productivity Commission Support and Resources for Education Providers (M26)
Departmental Output Expense
- (70) (140) (151) (151)
  Managing the Government's Investment in the Tertiary Education Sector (M68)
Non-Departmental Output Expense
- (70) (140) (150) (150)
Depreciation on School Property Following Revaluation School Property Portfolio Management (M26)
Departmental Output Expense
- - - 19,053 19,053
Early Childhood Education Cost Adjustment Early Childhood Education (M26)
Non-Departmental Other Expense
- 10,800 11,612 12,023 12,286
Early Childhood Education Regulations: Limited Attendance Centres Early Childhood Education (M26)
Non-Departmental Other Expense
- (624) (624) (624) (624)
Early Childhood Education: Funding Rates and Policy Changes Early Childhood Education (M26)
Non-Departmental Other Expense
6,847 5,084 8,967 10,066 10,066
Extend Access to State Schools for Children of Illegal Immigrants Primary Education (M26)
Non-Departmental Other Expense
- 1,063 1,063 1,063 1,063
  Secondary Education (M26)
Non-Departmental Other Expense
- 729 729 729 729
  Special Needs Support (M26)
Non-Departmental Other Expense
- 24 24 24 24
Forecast Changes for School Operations Expenditure Primary Education (M26)
Non-Departmental Other Expense
2,261 - - - -
  Secondary Education (M26)
Non-Departmental Other Expense
1,080 (8) 1,208 1,177 1,177
  Home Schooling Allowances (M26)
Benefits and Other Unrequited Expenses
203 216 230 243 243
Forecast Changes for School Property Interest Subsidy for Schools (M26)
Non-Departmental Other Expense
(47) (42) (58) (19) (19)
  Integrated Schools Property (M26)
Non-Departmental Other Expense
674 1,159 1,159 1,159 1,159
Forecast Changes for School Transport School Transport (M26)
Non-Departmental Output Expense
(279) (1,059) 17 852 1,105
  School Transport (M26)
Non-Departmental Other Expense
37 - 1 1 1
Forecast Changes for Teacher Salaries Primary Education (M26)
Non-Departmental Other Expense
215 2,041 2,478 3,105 3,754
  Secondary Education (M26)
Non-Departmental Other Expense
3,363 5,381 5,533 5,816 6,161
  Special Needs Support (M26)
Non-Departmental Other Expense
2,517 2,100 2,145 2,210 2,282
Funding for the Introduction of Ultra-fast Broadband into Schools Support and Resources for Teachers (M26)
Departmental Output Expense
4,300 3,500 - - -
  Departmental capital injection 10,500 15,000 - - -
  Schools Furniture and Equipment (M26)
Non-Departmental Capital Expenditure
700 - - - -
Immediate Actions to Boost Participation in Early Childhood Education Strategic Leadership in the Sector (M26)
Departmental Output Expense
- 220 55 - -
  Support and Resources for Education Providers (M26)
Departmental Output Expense
355 - - - -
  Provision of Information and Advisory Services (M26)
Non-Departmental Output Expense
260 - - - -
  Early Childhood Education (M26)
Non-Departmental Other Expense
- 456 456 - -
  Early Childhood Grants (M26)
Non-Departmental Other Expense
(615) (676) (511) - -
International Education Promotions International Education Programmes (M26)
Non-Departmental Output Expense
- 2,000 2,000 2,000 2,000
Investigations into Public Private Partnerships for New School Property School Property Portfolio Management (M26)
Departmental Output Expense
- 2,500 1,000 100 100
Literacy, Language and Numeracy Capability - Contractual Obligation Tertiary Education Organisation Component - Capability Fund (M68)
Non-Departmental Other Expense
- 2,000 - - -
Maintain 2010 EFTS Baseline in Universities and Polytechnics Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
- 25,184 35,123 32,331 31,700
Maintaining Hours of Special Education Support Workers Interventions for Target Student Groups (M26)
Departmental Output Expense
- 1,100 1,100 1,100 1,100
Manukau Institute of Technology's Tertiary High School Programme Tertiary Education Grants and Other Funding (M68)
Non-Departmental Other Expense
260 260 - - -
Modifying Funding Systems to Implement Early Childhood Savings Support and Resources for Education Providers (M26)
Departmental Output Expense
- 1,442 1,293 1,123 1,123
  Departmental capital injection - 3,910 - - -
Modifying Systems to Implement Quarterly Roll Count Savings Support and Resources for Education Providers (M26)
Departmental Output Expense
- 333 386 386 386
  Departmental capital injection - 1,400 - - -
New Schools Building Programme 2010 School Property Portfolio Management (M26)
Departmental Output Expense
- 163 2,569 4,664 5,624
  Primary Education (M26)
Non-Departmental Other Expense
- - 13 91 136
  Secondary Education (M26)
Non-Departmental Other Expense
- - 13 91 136
  Departmental capital injection - 18,050 19,747 9,781 -
  Schools Furniture and Equipment (M26)
Non-Departmental Capital Expenditure
- 500 1,220 1,323 500
Package of Targeted Early Childhood Education Initiatives Strategic Leadership in the Sector (M26)
Departmental Output Expense
- 240 240 240 240
  Early Childhood Education (M26)
Non-Departmental Other Expense
- 10,400 21,700 28,600 30,100
Positive Behaviour for Learning Interventions for Target Student Groups (M26)
Departmental Output Expense
- 5,000 10,000 - -
Positive Behaviour for Learning Action Plan: Implementation School Property Portfolio Management (M26)
Departmental Output Expense
- (78) (78) (78) (78)
  Interventions for Target Student Groups (M26)
Departmental Output Expense
1,400 3,000 3,000 3,000 3,000
  Professional Development and Support (M26)
Non-Departmental Output Expense
(450) (811) (811) (811) (811)
  Special Needs Support (M26)
Non-Departmental Other Expense
(950) (2,111) (2,111) (2,111) (2,111)
Price Increase to Tuition Subsidies Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
- 20,953 41,933 41,963 41,989
Progressing Trade Academies Secondary Education (M26)
Non-Departmental Other Expense
1,100 - - - -
Rationalisation of Surplus School Property School Property Portfolio Management (M26)
Departmental Output Expense
- 25,000 5,000 5,000 5,000
Recognising Teachers with Primary and Overseas Qualifications for Early Childhood Early Childhood Education (M26)
Non-Departmental Other Expense
- 6,281 8,678 9,502 10,434
Redevelop Property Management Information System School Property Portfolio Management (M26)
Departmental Output Expense
- 500 1,297 2,558 2,626
  Departmental capital injection - 748 5,185 1,796 -
Repairing and Replacing Leaky School Buildings School Property Portfolio Management (M26)
Departmental Output Expense
- 17,348 15,384 9,384 9,384
  Departmental capital injection - 82,000 - - -
Reversing 2009 School Staffing Savings Decisions Primary Education (M26)
Non-Departmental Other Expense
- - 45,000 50,000 50,000
Savings - Aligning Funding to Early Childhood Teacher Registration Target Early Childhood Education (M26)
Non-Departmental Other Expense
- (31,157) (81,688) (88,912) (93,555)
Savings - Better Targeting of Teacher Supply Initiatives in Early Childhood Professional Development and Support (M26)
Non-Departmental Output Expense
- (356) (356) (356) (356)
  Early Childhood Education (M26)
Non-Departmental Other Expense
- (1,203) (9,703) (10,203) (10,203)
  National Study Awards (M26)
Benefits and Other Unrequited Expenses
- (2,500) (2,500) (2,500) (2,500)
Savings - Not Proceeding with Removing the Six Hour Daily Limit Early Childhood Education (M26)
Non-Departmental Other Expense
- - (16,000) (16,500) (16,500)
Savings - Quarterly Roll Counts for Secondary Schools Operational Funding Secondary Education (M26)
Non-Departmental Other Expense
- (3,000) (6,000) (5,000) (5,000)
Savings - Reduce Funding Rates for Other Tertiary Education Providers Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
- (175) (505) (804) (949)
Savings - Reprioritise Funding Set Aside for Further Rate Increases Early Childhood Education (M26)
Non-Departmental Other Expense
- (9,253) (19,605) (21,064) (21,745)
Savings - Student Support Changes Strategic Leadership in the Tertiary System (M68)
Departmental Output Expense
- 100 - - -
  Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
- (8,607) (14,103) (11,214) (11,656)
Savings - Tertiary Education Organisation Component Tertiary Education Organisation Component - Capability Fund (M68)
Non-Departmental Other Expense
- (45,858) (56,364) (59,856) (59,856)
Scholarship Programme for Children from Low Income Families to Attend Private Schools Interventions for Target Student Groups (M26)
Departmental Output Expense
81 62 62 62 62
  Secondary Education (M26)
Non-Departmental Other Expense
(1,294) (2,976) (3,776) (4,188) (4,188)
  Scholarships for Students to Attend Private Schools (M26)
Benefits and Other Unrequited Expenses
1,213 2,914 3,714 4,126 4,126
School Network Upgrade Programme School Property Portfolio Management (M26)
Departmental Output Expense
- 1,331 4,618 4,618 4,618
Schools to Keep Unused Staffing Entitlement Primary Education (M26)
Non-Departmental Other Expense
- 6,000 6,000 6,000 6,000
  Secondary Education (M26)
Non-Departmental Other Expense
- 4,000 4,000 4,000 4,000
Service Academies Interventions for Target Student Groups (M26)
Departmental Output Expense
20 40 20 - -
  Service Academies (M26)
Non-Departmental Output Expense
360 1,440 720 - -
Simplifying the Tertiary Education Funding System Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
- 136,326 272,088 271,184 271,030
  Tertiary Education Organisation Component - Capability Fund (M68)
Non-Departmental Other Expense
- (136,326) (272,088) (271,184) (271,030)
Sport for Young Kiwis Curriculum Support (M26)
Non-Departmental Output Expense
(2,630) (5,300) (5,300) (5,300) (5,300)
  Primary Education (M26)
Non-Departmental Other Expense
6,000 6,000 6,000 6,000 6,000
  Secondary Education (M26)
Non-Departmental Other Expense
3,400 6,000 6,000 6,000 6,000
Support Establishment of Southern Cross Campus Trades Academy Secondary Education (M26)
Non-Departmental Other Expense
- 100 - - -
  Departmental capital injection (M68) (100) - - - -
Tertiary Assets Technical Adjustment Tertiary Education Grants and Other Funding (M68)
Non-Departmental Other Expense
- (51,037) (51,037) (51,037) (51,037)
Treaty of Waitangi Settlements - Education Impacts School Property Portfolio Management (M26)
Departmental Output Expense
- 12,225 21,791 19,131 19,131
Wage Settlement for Special Education-Funded Teacher Aides Interventions for Target Student Groups (M26)
Departmental Output Expense
- 1,629 1,704 1,704 1,704
Youth Guarantee - Additional 500 Places Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
- 3,337 6,676 6,676 6,676
Youth Guarantee - Maintain Baseline Tertiary Education: Student Achievement Component (M68)
Non-Departmental Output Expense
- - 3,094 9,281 12,374

Total Initiatives

  94,601 201,137 122,479 133,006 119,971

Analysis of Significant Trends

Significant changes in departmental and non-departmental appropriations between 2005/06 and 2013/14 are discussed briefly below.

Departmental Expenditure

The growth in departmental output expenditure is principally reflected in the increased costs of providing school land and buildings and other facilities, including capital charge and depreciation. This results from the increased value of the property portfolio after additional Government investment in schools and the annual revaluation of the portfolio, partly offset by changes in the capital charge rate. From 2010/11 there is also provision for rationalisation of surplus school property and the impact of Treaty of Waitangi settlements, notably the leasing back of school sites.

There is also increased provision for services for students with special education needs, including provision for teacher aides, adjustments to funding levels for the Ongoing and Reviewable Resourcing Schemes and Schools High Health Needs Fund (both for price and volume changes), settlements of related collective agreements, supplementary learning support and reducing challenging behaviour policies. Recently there has also been provision for the Positive Behaviour for Learning initiative.

Other significant changes to departmental funding include:

  • Initiatives to increase the supply of teachers, address specific skill shortages and improve teacher capability.
  • Provision of additional curriculum support material, including development of an electronic, Internet-based version of assessment tools, and development of assessment resources to align National Certificate of Educational Achievement standards with the curriculum and support the implementation of the National Standards.
  • Improved administrative systems for the compulsory sector, including roll and funding information and electronic data transfer, improving sector capability and development of new education payroll systems and related advisory services.
  • Ongoing implementation of new regulatory and funding systems for the early childhood education sector.
  • Investment in Ministry infrastructure, including document management and web infrastructure.
  • Reductions in expenditure on Ministry support functions from 2009/10, as well as realising efficiencies in information campaigns and focusing Ministry resources on a smaller number of support programmes.

Non-Departmental Outputs

Increases in non-departmental output expenses are principally owing to:

  • Transfer of tertiary student achievement component funding from other expense appropriations from 1 January 2008, which accounts for the significant change in 2007/08 and 2008/09. Further transfers of enrolment-related funding (the top-slice) will occur from January 2011.
  • Steady growth in the cost of school transport services.

Other notable changes include:

  • Additional resources to support curriculum initiatives, including the laptops for teachers programme and software licensing and teacher professional development for the school and early childhood education sectors. These are partly offset from 2009/10 by ceasing or retargeting some development and support programmes that have been assessed as less efficient and effective.
  • Growth in work-based education and training initiatives (for example, the Industry Training Fund, the Modern Apprenticeships and Gateway programmes) although partly offset by starting to phase out some programmes from 2009/10.
  • Increases in operating funding for the Tertiary Education Commission to implement the tertiary sector reforms and a substantial reduction in funding from 2009/10 onward.

Benefits and Other Unrequited Expenses

Changes in benefit expenses are largely related to:

  • Provision of tertiary doctoral and enterprise scholarships, and trainee medical intern grants up to 2008/09 but with a phase out of tertiary doctoral and enterprise scholarships from 2009/10.
  • Initiatives to attract students to careers in teaching, including introduction of a voluntary bonding scheme for teachers in hard-to-staff areas or subjects from 2012. These have been partly offset by transfers of funding for teacher trainee scholarship payments to Vote Social Development.
  • A steady rise in the number of national study awards available to existing teachers as a result of settlement of collective agreements and awards for top-performing teachers.
  • Phasing out doctoral research and undergraduate international student scholarships and capping tertiary study abroad awards from 2009/10.

Non-Departmental Other Expenses

Other expense appropriations account for most funding under Vote Education. Changes in these appropriations mainly reflect a combination of:

  • Roll-related increases in early childhood education sessional payments and school operations funding, as well as revised funding rates. Policy changes from 2010/11 will slow the rate of increase in early childhood education funding as well as support improved targeting to increase participation among Maori and Pasifika children and those in lower socio-economic areas.
  • Implementation of the early childhood education strategic plan with provision for a new funding framework from April 2005, including access to 20 hours early childhood education from 2007.
  • The impact of wage settlements for teachers and principals (including the flow-on of these costs to the early childhood education sector) and provision for improved staffing in schools.
  • Increased funding for tertiary education and training programmes up to 2008/09 owing to a combination of increased numbers of tertiary students and increases in per-student funding, strategic assistance to tertiary education institutions to adjust to the new tertiary education environment and growth in targeted Performance Based Research Fund funding.
  • However, as part of meeting commitments made against Budget 2009 the level of growth in tertiary education spending has been reduced (compared to that approved by the previous government). The impact of these reductions was spread across all tertiary education funding areas but with a particular focus on those increased in Budget 2008.
  • From 2010/11 there is provision to maintain the volume of Equivalent Full-time Students (EFTS) and increase numbers of EFTS in some sectors as well as a one-off increase to the subsidy for EFTS places. These are offset by stopping or further reducing most capability funding pools.

Tertiary student achievement component funding was transferred to non-departmental output expenses from 1 January 2008. Other enrolment-related funding (the top-slice) will be transferred to outputs from 1 January 2011.

Non-Departmental Capital Expenditure

The major changes in non-departmental capital expenditure over the period relate to:

  • Investment in tertiary education institutions, including assistance to institutions at financial risk, support for establishment of Centres of Research Excellence and support for public/private ventures under the Partnerships for Excellence facility.
  • Consideration for the inadequate capitalisation of Wananga and provision for their future needs.
  • Assistance for institutions to prepare for the new tertiary education environment envisaged by the Tertiary Education Strategy.
  • The sale of core teacher housing stock to schools and disposal of other housing assets between 2004/05 and 2006/07.

Ministry Capital Expenditure

Most capital expenditure for the Ministry of Education is for the school property works programme. Movements between years relate to factors such as site purchases and construction of new schools required for roll growth, as well as general timing of projects. There is also growing expenditure on the Schools Network Upgrade Programme and broadband initiatives. From 2010/11 there is also increased focus on rectification work for defective buildings.

The apparent reduction in funding after 2010/11 is mainly owing to most capital injections being determined on an annual basis.

Revenue

Significant changes between years include recoveries from Crown entities and repayment of principal on loans to tertiary education institutions.

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Education
2009/10 Appropriations
in the 2009/10 Structure
2009/10
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2009/10 Appropriations
in the 2010/11 Structure
2009/10
(Restated)
$000
2010/11
$000

Non-Departmental Output Expenses

           
Secondary School Examinations 23,760 Transferred to Secondary School Assessments (23,760)   - -
    Transferred from Secondary School Examinations 23,760 Secondary School Assessments 26,480 26,480
    Transferred from Quality Assurance 2,720      
Quality Assurance 7,700 Transferred to Secondary School Assessments (2,720) Quality Assurance 4,980 4,370
Tertiary and International Advisory Services 5,789 Transferred to International Education Programmes (5,789)   - -
    Transferred from Tertiary and International Advisory Services 5,789 International Education Programmes 6,006 6,006
    Transferred from Tertiary Education Grants and Other Funding
Non-Departmental Other Expense
217      
Tertiary Education: Student Achievement Component 1,622,950 Transferred from Tertiary Education Organisation Component - Capability Fund
Non-Departmental Other Expense
136,326 Tertiary Education: Student Achievement Component 1,759,276 1,827,487

Non-Departmental Other Expenses

           
Tertiary Education Grants and Other Funding 65,569 Transferred to International Education Programmes
Non-Departmental Output Expense
(217) Tertiary Education Grants and Other Funding 80,698 21,231
    Transferred from Tertiary Education Organisation Component - Capability Fund 15,346      
Tertiary Education Organisation Component - Capability Fund 421,686 Transferred to Tertiary Education: Student Achievement Component
Non-Departmental Output Expense
(136,326) Tertiary Education Organisation Component - Capability Fund 270,014 194,326
    Transferred to Tertiary Education Grants and Other Funding (15,346)      
Tertiary Education Organisation Component - Performance Based Research Fund 244,294 This appropriation has been renamed - Performance Based Research Fund 244,294 250,000

Total Changes in Appropriations

2,391,748   -   2,391,748 2,329,900

In 2010/11 the non-departmental other expense Tertiary Education Organisation Component - Capability Fund appropriation has been disestablished from 1 January 2011. Enrolment-based funding (the top-slice) has been transferred to non-departmental output expense Tertiary Education: Student Achievement Component. The balance of the Tertiary Education Institution Base Investment and other elements of the Capability Fund have been transferred to the Tertiary Education Grants and Other Funding appropriation.

Several appropriations have changed name in 2010/11 - Secondary School Examinations has become Secondary School Assessments; Tertiary and International Advisory Services has become International Education Programmes and Tertiary Education Organisation Component - Performance Based Research Fund has become Performance Based Research Fund.

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-6.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Education
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Increasing opportunity for children to participate in quality early childhood education.
Impacts:
  • The proportion of Maori, Pasifika and children from low socio-economic areas attending high quality early childhood education rising to levels consistent with the general population.
Interventions for Target Student Groups (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
Support and Resources for the Community (M26)
Outcome: Every child achieves literacy and numeracy levels that enable their success.
Impacts:
  • Literacy and numeracy levels increasing for those groups currently not achieving literacy and numeracy standards.
  • Every child making progress in line with their own skill levels to reach and exceed National Standards, regardless of where they go to school, their background, if they have a disability or have special education needs.
  • Teachers, principals and schools responding more quickly and effectively to the learning needs of students who are not achieving.
  • Greater levels of understanding and participation among parents in working with the teacher and their child to support the child's literacy and numeracy.
Interventions for Target Student Groups (M26)
School Property Portfolio Management (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
Support and Resources for the Community (M26)
Outcome: Every young person has the skills and qualifications to contribute to their and New Zealand's future.
Impacts:
  • Increased student engagement and retention in education.
  • Fewer numbers of young people leaving education without worthwhile qualifications.
  • Reduced numbers of young people who are not in education, training or employment.
Interventions for Target Student Groups (M26)
School Property Portfolio Management (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
Support and Resources for the Community (M26)
Outcome: Relevant and efficient tertiary education provision that meets student and labour market needs.
Impacts:
  • Improved efficiency within the tertiary funding system and student support system.
  • Increased numbers of students completing tertiary qualifications at higher levels.
Strategic Leadership in the Tertiary Sector (M68)
Outcome: Maori enjoying education success as Maori.
Impacts:
  • More Maori students achieving their potential through education.
  • Improved support of Maori-medium education.
  • Increasing numbers of high quality Te Reo teachers entering the teaching profession.
Interventions for Target Student Groups (M26)
School Property Portfolio Management (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
Support and Resources for the Community (M26)
Outcome: The Ministry is capable, efficient and responsive to achieve education priorities.
Impacts:
  • All children, including those with disabilities and special education needs, achieve their full potential through education.
  • Improved efficiency in the way the Ministry operates.
  • Improved cost-effectiveness of the Government's expenditure in education.
Interventions for Target Student Groups (M26)
School Property Portfolio Management (M26)
Strategic Leadership in the Sector (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
Support and Resources for the Community (M26)

For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations please see the Statement of Intent for the Ministry of Education.

Interventions for Target Student Groups (M26)

Scope of Appropriation

Expenditure on policies and services focused on targeted student groups' or individuals' participation in education. This includes providing services to individuals with special education and developmental needs, providing additional funding for the support of students with special education needs, providing alternative education options, working with individuals and relevant stakeholders to resolve participation issues, and administering scholarships and awards for individuals.

Expenses and Revenue

Expenses and Revenue - Interventions for Target Student Groups (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 225,266 225,266 237,396
Revenue from Crown 221,934 221,934 234,064
Revenue from Other 3,332 3,332 3,332

Reasons for Change in Appropriation

The increase in appropriation for 2010/11 compared to 2009/10 is mainly owing to a combination of:

  • increased provision for implementation of Positive Behaviour for Learning ($6.600 million increase)
  • extension of the Ongoing and Reviewable Resourcing Schemes ($2.795 million increase)
  • wage settlement for Special Education-funded teacher aides ($1.629 million increase)
  • maintaining hours of Special Education Support Workers ($1.100 million increase)
  • effect of settlement of Special Education Field Staff and Service Managers' collective agreements ($644,000 increase), and
  • partly offset by reductions in general operating expenditure as agreed in Budget 2009 ($512,000 decrease).

Output Performance Measures and Standards

Output Performance Measures and Standards - Interventions for Target Student Groups (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Development and Evaluation of Student Intervention Policy

     
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education. 100% 100% 100%
Ministerial satisfaction with the quality of policy advice provided. N/A 100% 100%
Quality of the Ministry's policy advice to Education Ministers and Cabinet Committees is assessed against the Ministry's Criteria for Assessing Policy Papers. >7.5/10 >7.5/10 >7.5/10
Percentage of policy that is provided within the agreed timeframes. 100% 100% 100%

Targeted Student Participation Interventions

     
The following scholarships and awards will be administered:      
  • Boarding Allowances and Bursaries.
400 - 600 400 - 600 400 - 600
  • Home Schooling Allowances.
5,500 - 6,500 5,500 - 6,500 5,500 - 6,500
  • Mapihi Pounamu.
250 - 350 250 - 350 350 - 500
  • Aspire Scholarships.
150 150 200
Interim Response Fund grant applications processed. 1,500 - 2,500 1,500 - 2,500 1,500 - 2,500
Non-enrolled truancy cases closed by Ministry staff. 400 - 1,000 400 - 1,000 400 - 1,000
The following funding will be provided to schools for the provision of support to English language learners:      
  • English for Speakers of Other Languages funding for provision of support.
32,000 students 32,000 students 32,000 students
  • Refugee Flexible Funding pool (for additional support to at-risk refugee background students).
30 - 40 schools for at least 600 students 30 - 40 schools for at least 600 students 30 - 40 schools for at least 600 students
Scholarships and grants will be:
  • awarded in line with Government policies and published criteria
  • calculated accurately
  • paid to the correct payee, and
  • paid within the timeframes notified.
98% 98% 98%
Providers, families, communities and students will be satisfied with support and assistance provided. Feedback collected Feedback collected Feedback collected

Special Needs Interventions

     
Number of communications services students. 5,500 - 7,000 5,500 - 7,000 5,500 - 7,000
Number of behavioural services students. 4,000 - 6,000 4,000 - 6,000 4,000 - 6,000
Workshops for family and whanau and education providers. 550 - 650 550 - 650 550 - 650
Number of Early Intervention services students. 11,000 - 13,000 11,000 - 13,000 11,000 - 13,000
Number of complex needs services comprising of:      
  • Ministry-provided Ongoing and Reviewable Resourcing Schemes students.
3,600 - 3,800 3,600 - 3,800 3,600 - 3,800
  • Specialist service provider Ongoing and Reviewable Resourcing Schemes students.
2,950 - 3,150 2,950 - 3,150 2,950 - 3,150
  • High Health Needs students.
550 550 550
  • Other services.
2,200 - 2,500 2,200 - 2,500 2,200 - 2,500
Families, education providers and communities are satisfied with the services received. Feedback collected Feedback collected Feedback collected
Percentage of providers that meet the standards of the annual self-review or have only one requirement noted. 90% 90% 100%
Percentage of eligible children waiting more than 90 days from referral for Communications, Behavioural, Early Intervention and Ongoing and Reviewable Resourcing Schemes services. No more than 5% for each service No more than 5% for each service No more than 5% for each service

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Interventions for Target Student Groups (M26) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Maintaining Hours of Special Education Support Workers 2010/11 - 1,100 1,100 1,100 1,100
Positive Behaviour for Learning 2010/11 - 5,000 10,000 - -
Wage Settlement for Special Education-Funded Teacher Aides 2010/11 - 1,629 1,704 1,704 1,704
Positive Behaviour for Learning Action Plan: Implementation 2009/10 1,400 3,000 3,000 3,000 3,000
Scholarship Programme for Children from Low Income Families to Attend Private Schools 2009/10 81 62 62 62 62
Service Academies 2009/10 20 40 20 - -
Maintaining Existing Level of Funding for School High Health Needs Fund 2009/10 2,671 2,671 2,671 2,671 2,671
Extension of the Ongoing and Reviewable Resourcing Schemes 2009/10 3,130 6,250 11,250 11,250 11,250
Savings - Reduce Policy Advice Expenditure 2010/11 - (69) (69) (69) (69)
Savings - Reduce Support Function Expenditure 2009/10 (1,181) (1,693) (2,204) (2,204) (2,204)

Previous Government

           
Group Special Education Field Staff and Service Managers Settlements 2008/09 4,387 5,031 5,031 5,031 5,031
Cost Increases for Non-Group Special Education Providers 2008/09 3,682 3,682 3,682 3,682 3,682
Education Services to Support a Newborn Hearing Screening Programme 2008/09 1,561 1,895 2,171 2,176 2,176
Extra Therapy Support for Some High Needs Students 2008/09 129 - - - -
Ongoing and Reviewable Resourcing Schemes Baseline Adjustment 2008/09 2,642 2,317 2,317 2,317 2,317
Cost Increases for Non-Group Special Education Providers 2007/08 2,442 2,442 2,442 2,442 2,442
Reprioritisation of Baselines - Families - Young and Old 2007/08 (950) (950) (950) (950) (950)
Funding Increase for the Ongoing and Reviewable Resourcing Schemes and Behaviour Initiative 2006/07 2,231 2,231 2,231 2,231 2,231
Group Special Education Service Pressures 2006/07 1,345 1,345 1,345 1,345 1,345
Ministry of Education Service Managers' Collective Agreement Settlement 2006/07 371 371 371 371 371
Reprioritisation of Education Expenditure 2006/07 (2,768) (2,768) (2,768) (2,768) (2,768)
Special Education Local Coordinators 2006/07 1,305 1,305 1,305 1,305 1,305
Tackling Disruptive Behaviour in Schools 2006/07 356 356 291 291 291
Group Special Education Field Staff Settlement: Appropriations 2005/06 5,769 5,769 5,769 5,769 5,769
Group Special Education Support Workers' Settlement: Appropriations 2005/06 277 277 277 277 277

School Property Portfolio Management (M26)#

Scope of Appropriation

Expenditure on goods and services focused on providing the land, buildings and other facilities that make up the property portfolio of the State school sector. This includes purchasing and constructing new property, upgrading existing property to maintain the quality of the portfolio, disposing of surplus property, and managing teacher and caretaker housing.

Expenses and Revenue

Expenses and Revenue - School Property Portfolio Management (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,287,871 1,287,871 1,364,193
Revenue from Crown 1,284,582 1,284,582 1,360,904
Revenue from Other 3,289 3,289 3,289

Reasons for Change in Appropriation

The increase in the appropriation in 2010/11 compared to 2009/10 is mainly owing to a combination of:

  • provision for a school property rationalisation programme ($25 million increase)
  • additional costs - mainly capital charge and depreciation - related to the school property works programme, especially decisions from Budgets 2009 and 2010 ($22.421 million)
  • the impact of Treaty of Waitangi settlements involving education sites including transfer costs and increased lease expenses ($12.225 million increase)
  • increased costs related to managing the defective buildings programme ($10.400 million increase)
  • increased costs related to disposal of surplus school properties ($2.400 million), and
  • additional costs related to property investments for school staffing improvements ($1.786 million increase).

Output Performance Measures and Standards

Output Performance Measures and Standards - School Property Portfolio Management (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The property works programmes will reflect the 2010/11 School Property Capital Plan, including:
  • Five-year Agreements
  • other programmes for maintaining and upgrading existing property - replacement buildings, unforeseen capital, property initiatives, risk management and property modifications to enable the enrolment of children with special education needs
  • opening of new schools
  • acquisition of new sites
  • delivery of new wharekura and kura re-developments, and
  • allocation of funding for roll growth classrooms and non-teaching space at existing schools.
100% 100% 100%
All schools are visited by Ministry of Education property staff within two years to support school property management including planning, capital projects and maintenance. 900 - 1,100 per year 900 - 1,100 per year 900 - 1,100 per year
The Ministry will ensure that:      
Prior to accessing capital funding, with the exception of funding to rectify a catastrophic loss, State schools have a:
  • Ten-year Property Plan in place that includes an asset condition assessment, and
  • Five-year Agreement that prioritises issues identified in the Ten-year Property Plan.
100% 100% 100%
Schools with a compliance schedule hold a current Building Warrant of Fitness. 100% 100% 100%
All projects comply with statutory, regulatory and Ministry design standards and are implemented in accordance with the project management guidelines, as certified by their completion certificates or sign-off processes for new buildings. 100% 100% 100%
All schools suffering a catastrophic incident of loss (fire, flood, earthquake, etc) are restored to operational status within three working days of the loss. 100% 100% 100%
New schools are opened in time for the new school year. 100% 100% 100%
Post-occupancy evaluations are completed for all schools that opened in 2010. 4 4 3
Post-occupancy evaluations confirm that schools that open in 2010 are aligned to their vision, meet the users' needs and that no major design or construction issues have been identified. 100% 100% 100%
Surplus properties are identified and disposed of in accordance with statutory, regulatory and Government policy requirements that apply to surplus Crown land. 100% 100% 100%
Surplus properties are sold on average within 16 to 38 months of them being assigned to the disposal process. 100% 100% 100%
School house occupancy rate. 85% 85% 85%
Maintenance of teacher and caretaker housing is:
  • completed as required for compliance with the Residency Tenancy Act 1986, and
100% 100% 100%
  • undertaken as programmed following annual inspection.
Schedule of works submitted by end of September. Works to be completed by June the following year Schedule of works submitted by end of September. Works to be completed by June the following year Schedule of works submitted by end of September. Works to be completed by June the following year

Current and Past Policy Initiatives

Current and Past Policy Initiatives - School Property Portfolio Management (M26) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
New Schools Building Programme 2010 2010/11 - 163 2,569 4,664 5,624
Repairing and Replacing Leaky School Buildings 2010/11 - 17,348 15,384 9,384 9,384
Redevelop Property Management Information System 2010/11 - 500 1,297 2,558 2,626
Capital Funding for School Maintenance and Improvement 2009/10 657 4,429 1,960 - -
Investigations into Public Private Partnerships for New School Property 2010/11 - 2,500 1,000 100 100
Schools Network Upgrade Programme 2010/11 - 1,331 4,618 4,618 4,618
Depreciation on School Property Following Revaluation 2012/13 - - - 19,053 19,053
Rationalisation of Surplus School Property 2010/11 - 25,000 5,000 5,000 5,000
Treaty of Waitangi Settlements - Education Impacts 2010/11 - 12,225 21,791 19,131 19,131
Positive Behaviour for Learning Action Plan: Implementation 2010/11 - (78) (78) (78) (78)
21st Century Building Programme 2008/09 38,610 57,406 70,306 70,738 70,738
Savings - Reduce Policy Advice Expenditure 2010/11 - (71) (71) (71) (71)
Savings - Reduce Support Function Expenditure 2009/10 (45) (65) (84) (84) (84)

Previous Government

           
Albany Senior High School: Design and Construction 2008/09 2,853 - - - -
2008/09 School Property Business Case 2008/09 9,919 9,233 9,132 9,132 9,132
2009 School Staffing Improvements for New Entrants 2008/09 614 2,014 2,964 3,236 3,236
School Property Business Case 2007/08 23,524 23,524 23,524 23,524 23,524
School Staffing Improvements for New Entrants 2007/08 3,601 3,987 3,987 3,987 3,987
2006/07 School Property Business Case 2006/07 14,618 14,618 14,618 14,618 14,618
2007 School Staffing Improvements 2006/07 604 604 604 604 604
Reprioritisation of Education Expenditure 2006/07 (9,336) (9,336) (9,336) (9,336) (9,336)

Strategic Leadership in the Sector (M26)#

Scope of Appropriation

Expenditure on policies and services focused on the Ministry's leadership role in the education sector. This includes enhancing the Ministry's coordination with other sector and Government agencies and forums, undertaking research and analysis, developing sector policy, monitoring the sector and select crown entities, and supporting the Minister of Education and Associate Minister to meet their obligations to Parliament.

Expenses and Revenue

Expenses and Revenue - Strategic Leadership in the Sector (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 31,276 31,276 31,476
Revenue from Crown 30,829 30,829 31,029
Revenue from Other 447 447 447

Output Performance Measures and Standards

Output Performance Measures and Standards - Strategic Leadership in the Sector (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Cross-Agency Coordination

     
The Secretary for Education has regular formalised contact with education chief executives to address issues of alignment within the sector. Record of meeting and topics Record of meeting and topics Record of meeting and topics
Peak bodies (see Note 1) and other Government agencies recognise the Ministry's leadership on education issues. Feedback collected Feedback collected Feedback collected
Education chief executives are satisfied with Ministry advice on shared sector Information and Communications Technology services. Feedback collected Feedback collected Feedback collected
The cross-agency shared work programme is delivered as planned. N/A 100% 100%

Research and Analysis

     
Research and analysis outputs will be delivered according to the agreed work programme and aligned to the Ministry's priority areas. 100% 100% 100%
All major research and analysis outputs are externally reviewed by a recognised expert and found to be of high quality. N/A 100% 100%
Research programmes are provided within the agreed timeframes. 100% 100% 100%

Monitoring of the Education Sector

     
Monitoring reports, including the annual School Sector Report, Nga Haeata Matauranga and Education Statistics are produced according to work programme and published on the Education Counts website. 100% 100% 100%
Crown entities' accountability documents are reviewed and assistance provided in their development as required. N/A 100% 100%
Risk profiling and monitoring reports are prepared every six months and submitted to the Minister of Education. N/A 100% 100%
The Minister is satisfied with the advice and briefings provided around the Crown entities. N/A Feedback from Minister Feedback from Minister
Critical forecasts of demographic trends, network capacity and expenditure are within an average of 3% and a maximum of 5% of actual values up to 12 months after being forecast. N/A 100% 100%
Analysis of and comment on the performance of Crown entities under their output agreements will be provided to the Minister within 30 working days of receipt of reports. 100% 100% 100%

Development and Evaluation of Strategic Policy

     
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education. 100% 100% 100%
Ministerial satisfaction with the quality of policy advice provided. N/A 100% 100%
Quality of the Ministry's policy advice to Education Ministers and Cabinet Committees is assessed against the Ministry's Criteria for Assessing Policy. >7.5/10 >7.5/10 >7.5/10
Percentage of policy that is provided within the agreed timeframes. 100% 100% 100%

Support for the Education Minister

     
Parliamentary questions and petitions. 1,110 - 1,400 1,110 - 1,400 1,110 - 1,400
Select Committee examinations and inquiries. 250 - 400 250 - 400 250 - 400
Statutory information. 100 - 200 100 - 200 100 - 200
General ministerial correspondence, including responses to requests from the Minister. 6,000 - 7,000 6,000 - 7,000 6,000 - 7,000
The content of all ministerial services provided will be factually accurate and appropriate in style and content for the individual Minister, consistent with the Ministry's Ministerial Correspondence Guidelines. 100% 100% 100%
All responses and provision of information to the Minister of Education and Parliament, and its committees, will be prepared to agreed or statutory timeframes. 95%
 
95%
 
100%

Note 1 - An association of industries or groups established for the purposes of developing standards and processes, lobbying government or promoting the interests of the members.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Strategic Leadership in the Sector (M26) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Package of Targeted Early Childhood Education Initiatives 2010/11 - 240 240 240 240
Immediate Actions to Boost Participation in Early Childhood Education 2010/11 - 220 55 - -
Savings - Reduce Policy Advice Expenditure 2010/11 - (332) (332) (332) (332)
Savings - Reduce Support Function Expenditure 2009/10 (197) (282) (368) (368) (368)

Strategic Leadership in the Tertiary System (M68)#

Scope of Appropriation

Expenditure on policies and services focused on the Ministry's leadership role in the tertiary system. This includes enhancing coordination with sector and Government agencies and forums, undertaking research and analysis, developing sector policy, monitoring the system, providing information on tertiary and international education services, representing the education sector internationally, supporting international students, and supporting Ministers to meet their obligations to Parliament.

Expenses and Revenue

Expenses and Revenue - Strategic Leadership in the Tertiary System (M68) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,082 15,082 13,890
Revenue from Crown 15,074 15,074 13,882
Revenue from Other 8 8 8

Reasons for Change in Appropriation

The decrease in the appropriation compared to the previous year is owing mainly to decisions from Budget 2009, including to eliminate two Counsellor positions for international education ($800,000), reduce policy advice expenditure ($239,000), and general operating expenditure ($107,000).

Output Performance Measures and Standards

Output Performance Measures and Standards - Strategic Leadership in the Tertiary System (M68) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Cross-Tertiary Agency Coordination

     
The Secretary for Education has regular formalised contact with the chief executives of the Tertiary Education Commission and New Zealand Qualifications Authority to address issues of alignment within the tertiary sector. Record of meeting and topics Record of meeting and topics Record of meeting and topics
Education chief executives are satisfied with Ministry advice on shared sector Information and Communications Technology services. Feedback collected Feedback collected Feedback collected
The cross-tertiary agency shared work programme is delivered as planned. N/A 100% 100%

Tertiary and International Research and Analysis

     
Research and analysis outputs will be delivered according to the agreed work programme and aligned to the Ministry's priority areas. 100% 100% 100%
All research and analysis outputs are externally reviewed by a recognised expert and judged to be of high quality. N/A 100% 100%
Reports are provided within the agreed timeframes. 100% 100% 100%

Monitoring the Tertiary System

     
Twenty monitoring and analysis reports aligned to the Ministry's priority areas. 100% 100% 100%
The Tertiary Education Commission's accountability documents are reviewed and assistance provided in their development as required. N/A 100% 100%
Risk profiling and monitoring reports for the Tertiary Education Commission are prepared every six months and submitted to the Minister for Tertiary Education. N/A 100% 100%
The Minister is satisfied with the advice and briefings provided on the Tertiary Education Commission. N/A Feedback from Minister Feedback from Minister
Critical forecasts of demographic trends, network capacity and expenditure are within an average of 3% and a maximum of 5% of actual values up to 12 months after being forecast. N/A 100% 100%
Analysis of and comment on the performance of the Tertiary Education Commission under its output agreement will be provided to the Minister within 30 working days of receipt of reports. 100% 100% 100%

Development and Evaluation of Tertiary and International Policy

     
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister for Tertiary Education and the Secretary for Education. 100% 100% 100%
Ministerial satisfaction with the quality of policy advice provided. N/A 100% 100%
Quality of the Ministry's policy advice to Tertiary Education Ministers and Cabinet Committees is assessed against the Ministry's Criteria for Assessing Policy Papers. >7.5/10 >7.5/10 >7.5/10
Percentage of policy that is provided within the agreed timeframes. 100% 100% 100%
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister for Tertiary Education and the Secretary for Education. 100% 100% 100%

Provision of Tertiary and Other Information

     
Information will be delivered in accordance with documented terms of reference/specifications for each publication, campaign, seminar or other form of information. 100% 100% 100%

Support for International Education

     
Number of international students covered by the Code of Conduct for Pastoral Care annually. 80,000 - 100,000 80,000 - 100,000 90,000 - 110,000
Providers comply with the standards set out in the Ministry's Code of Practice for the Pastoral Care of International Students. 100% 100% 100%
The Export Education Levy Fund delivers on its stated criteria. Export Education Levy Annual Report Export Education Levy Annual Report Export Education Levy Annual Report
The contract and performance of Education New Zealand will reflect Government priorities for international education in New Zealand. 100% 100% 100%

Support for the Tertiary Minister

     
Ministerial services will be provided in the following ranges:      
  • Select Committee questions and inquiries.
150 - 250 150 - 250 150 - 250
  • Parliamentary questions and petitions.
100 -150 100 -150 100 -150
  • Statutory information.
20 - 30 20 - 30 20 - 30
  • General ministerial correspondence.
600 - 800 600 - 800 600 - 800
The content of all ministerial services provided will be factually accurate and appropriate in style and content for the individual Minister, consistent with the Ministry's Ministerial Guidelines. 100% 100% 100%
Responses and provision of information to the Minister for Tertiary Education and Parliament, and its committees, will be prepared to agreed timeframes. 95% 95% 95%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Strategic Leadership in the Tertiary System (M68) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Savings - Student Support Changes 2010/11 - 100 - - -
European Union / New Zealand Mobility Projects 2008/09 (200) (200) (200) - -
Savings - Reduce Policy Advice Expenditure 2010/11 - (239) (239) (239) (239)
Savings - Reduce Support Function Expenditure 2009/10 (246) (353) (460) (460) (460)
Savings - International Education 2009/10 (400) (1,200) (1,200) (1,200) (1,200)

Previous Government

           
Savings Identified in Vote Education (Tertiary) 2008/09 (500) (500) (500) (500) (500)
Taxation of Foreign Allowances 2008/09 1,025 1,025 1,025 1,025 1,025
Development of Information Technology Systems and Data Collection to Support Tertiary Reforms 2007/08 210 210 210 210 210
Education Diplomacy - Gulf Region 2007/08 600 600 600 600 600
European Union / New Zealand Mobility Projects 2007/08 200 200 100 - -
Strengthening Infrastructure and Provision to Upskill the Workforce 2007/08 400 300 - - -
Upskilling the Workforce 2007/08 (972) (972) (972) (972) (972)
Relocating the Ownership Monitoring and Related Functions for Tertiary Education Institutions 2006/07 (1,179) (1,179) (1,179) (1,179) (1,179)
Learning for Living: Literacy, Numeracy and Language for Adults 2005/06 123 123 123 123 123

Support and Resources for Education Providers (M26)#

Scope of Appropriation

Expenditure on policies, regulations and services focused on the governance, management and operation of education providers. This includes managing regulations, administering the distribution of resources, delivering services that support school management - including industrial relations and education payroll, and working with providers to resolve underperformance.

Expenses and Revenue

Expenses and Revenue - Support and Resources for Education Providers (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 77,258 77,258 85,669
Revenue from Crown 75,257 75,257 83,668
Revenue from Other 2,001 2,001 2,001

Reasons for Change in Appropriation

The increase in the appropriation for 2010/11 is mainly owing to a combination of

  • ongoing work on replacement of the schools payroll project ($8.133 million increase)
  • modifying early childhood education funding systems ($1.442 million increase)
  • reductions in general operating expenditure as agreed in Budget 2009 ($836,000 decrease)
  • reduced provision for the long-term work programme related to settlement of teacher collective agreements ($375,000 decrease), and
  • one-off funding for actions to boost participation in early childhood education ($355,000 decrease).

Output Performance Measures and Standards

Output Performance Measures and Standards - Support and Resources for Education Providers (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Development and Evaluation of Provider Policy

     
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education. 100% 100% 100%
Ministerial satisfaction with the quality of policy advice provided. N/A 100% 100%
Quality of the Ministry's policy advice to Education Ministers and Cabinet Committees is assessed against the Ministry's Criteria for Assessing Policy Papers. >7.5/10 >7.5/10 >7.5/10
Percentage of policy that is provided within the agreed timeframes. 100% 100% 100%

Regulation of Providers

     
New enrolment schemes (State schools). 0 - 15 0 - 15 0 - 15
Supplementary integration agreements. 30 - 100 30 - 100 30 - 50
Integration of private schools. 0 - 10 0 - 10 0 - 10
New early childhood education services licensed. 200 - 300 200 - 300 150 - 250
Early childhood education services re-licensed. 300 - 400 300 - 400 500 - 700
Playgroups certified. N/A 200 200 - 300
Education providers are satisfied with Ministry licensing actions. Feedback collected Feedback collected Feedback collected
New early childhood education licences and certificates are granted within 30 working days. 100% 100% 100%

Resourcing Education Providers

     
Percentage of education providers subject to resource allocation audits (including repeat audits and special reviews). 12% - 17% 12% - 17% 12% - 17%
Resourcing payments, calculated and delivered accurately in respect of amounts, schedules and agreements with providers, advised timeframes, providers or persons paid, statutory requirements and the numbers of returns and other information. 98% 98% 100%
Services are provided within the terms of the contracts. 95% 95% 100%
All eligible students are delivered to school safely and on time by the contracted transport provider. Information to be sought from service providers Information to be sought from service providers Information to be sought from service providers

Provision of Services

     
Percentage of contestable/targeted funding pools processed within the agreed timeframe. 95% 95% 95%
All school sector and kindergarten industrial relations services provided to all appropriate standards. 100% 100% 100%
All eligible payees paid in each pay period (all permanent and temporary employees). 95% 95% 100%
Employees paid the correct amount each fortnight. 98% 98% 100%
Payroll payments will be made on or before advised pay dates. 100% 100% 100%
The Risk Management Scheme's content deed will be updated and available from the Ministry's website by 30 July each year. 100% 100% 100%

At-Risk Provider Interventions

     
Where interventions are required, appropriate action under Section 78 of the Education Act 1989 is taken. 100% 100% 100%
Providers receiving interventions are returned to full self-governance within 24 months of intervention. 95% 95% 95%
Decisions on whether or not an intervention under section 78 of the Education Act is necessary will be made within two months of confirmed ERO report, request from board of trustees or determination by the Ministry. 100% 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Support and Resources for Education Providers (M26) - Education
Reference Conditions

Section 78 of the Education Act 1989

 
Section 78J The Secretary for Education may require a board to provide specific information.
Section 78K The Secretary for Education may require a board to engage specialist help.
Section 78L The Secretary for Education may require a board to prepare and carry out an action plan.
Section 78M The Minister of Education may direct the Secretary for Education to appoint a limited statutory manager.
Section 78N(1) The Minister of Education may dissolve a board and direct the Secretary for Education to appoint a commissioner.
Section 78N(3) The Secretary for Education may dissolve a board and appoint a commissioner.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Support and Resources for Education Providers (M26) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Contribution to the Establishment and Operating Costs of the Productivity Commission 2010/11 - (70) (140) (151) (151)
Modifying Funding Systems to Implement Early Childhood Savings 2010/11 - 1,442 1,293 1,123 1,123
Modifying Systems to Implement Quarterly Roll Count Savings 2010/11 - 333 386 386 386
Immediate Actions to Boost Participation in Early Childhood Education 2009/10 355 - - - -
Savings - Reduce Support Function Expenditure 2009/10 (1,207) (1,729) (2,252) (2,252) (2,252)
Savings - Reduce Policy Advice Expenditure 2010/11 - (314) (314) (314) (314)

Previous Government

           
Business Case for Replacement of Schools' Payroll 2008/09 10,503 18,636 (303) (1,594) (1,686)
2009 School Staffing Improvements for New Entrants 2008/09 127 127 127 127 127
Funding Changes for All-Day Kindergartens 2007/08 119 119 119 119 119
School Staffing Improvements for New Entrants 2007/08 235 135 (4) (4) (4)
Collective Agreements: Settlements for Teachers and Principals (see Note 1) 2007/08 2,025 1,650 250 250 250
Schools' Operational Funding Package 2007/08 250 250 250 250 250
Enrolment Management System 2006/07 1,982 1,982 1,982 1,982 1,982
Free Early Childhood Education Extension and Implementation 2006/07 680 680 680 680 680
Reprioritisation of Education Expenditure 2006/07 (644) (644) (644) (644) (644)
Sector Information and Communications Technology Shared Services 2006/07 3,238 3,238 3,238 3,238 3,238
Software Licensing Agreements for New Zealand Schools 2006/07 307 307 307 307 307
Schools Integrated Data 2005/06 1,352 1,352 1,352 1,352 1,352
Schools' Payroll Project Cluster Stage 1 2005/06 6,687 6,687 6,687 6,687 6,687

Note 1 - This initiative was originally appropriated under departmental output Support and Resources for Teachers.

Support and Resources for Teachers (M26)#

Scope of Appropriation

Expenditure on policies and services focused on supporting the work and enhancing the capability of teachers. This includes providing curriculum and achievement standards, teaching resources, professional development, and administering scholarships and awards for existing teachers and principals.

Expenses and Revenue

Expenses and Revenue - Support and Resources for Teachers (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 61,347 61,347 59,528
Revenue from Crown 61,182 61,182 59,363
Revenue from Other 165 165 165

Reasons for Change in Appropriation

The reduction in appropriation for 2010/11 is mainly owing to a combination of:

  • rationalising resources and focussing on fewer support programmes as agreed in Budget 2009 ($2.800 million decrease)
  • costs related to broadband initiatives and trial of the national education network ($1.264 million decrease)
  • provision for development of assessment tools to support the National Standards ($1.680 million increase), and
  • a contribution to the State Services Commission Identity Verification Service in 2009/10 only ($751,000 increase).

Output Performance Measures and Standards

Output Performance Measures and Standards - Support and Resources for Teachers (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Development and Evaluation of Teaching Policy

     
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education. 100% 100% 100%
Ministerial satisfaction with the quality of policy advice provided. N/A 100% 100%
Quality of the Ministry's policy advice to Education Ministers and Cabinet Committees is assessed against the Ministry's Criteria for Assessing Policy Papers. >7.5/10 >7.5/10 >7.5/10
Percentage of policy that is provided within the agreed timeframes. 100% 100% 100%

Provision of Teaching and Learning Resources

     
Learning, teaching and assessment resources will be provided in print or online in both English and Te Reo Maori. Printed: 146 -164
Online: 18,000 - 20,000
Printed: 146 -164
Online: 18,000 - 20,000
Printed: 146 -164
Online: 18,000 - 20,000
Resources are subjected to appropriate quality development processes (this could include trialling, peer review and focus groups, for example) to ensure they are aligned with the latest educational research. N/A 100% 100%
Users are consulted during the development of significant resources. N/A 100% 100%
Learning, teaching and assessment resources will be provided according to the individually agreed deadlines. N/A 100% 100%

Provision of Services to Support Professional Leadership and Learning

     
Professional development resources are targeted at areas of Government priority and identified need. 100% 100% 100%
Contracts for professional development programmes and other resources will be managed according to the Ministry's Contracting Guidelines policy. 100% 100% 100%
Teachers are satisfied with the professional development provided. Feedback from providers Feedback from providers Feedback from providers
Scholarships and awards will be:
  • awarded in line with Government policies and published criteria
  • calculated accurately, and
  • paid to the correct payee and within the timeframes notified.
98% 98% 98%
The performance of contracted providers is monitored and reviewed annually. 100% 100% 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Support and Resources for Teachers (M26) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Assessment Tools to Support National Standards 2010/11 - 1,680 3,880 2,480 2,380
Funding for the Introduction of Ultra-fast Broadband into Schools 2009/10 4,300 3,500 - - -
National Certificate of Educational Achievement Standards Review - Assessment Resource Development 2009/10 2,526 2,731 2,431 350 350
Savings - Reduce Support Function Expenditure 2009/10 (58) (83) (108) (108) (108)
Savings - Reduce Policy Advice Expenditure 2010/11 - (199) (199) (199) (199)
Savings - Rationalise Resources and Focus on Fewer Support Programmes 2009/10 (3,800) (6,600) (6,600) (6,600) (6,600)

Previous Government

           
Baselining for Funding for Mission-On and the Stage Challenge 2010/11 - 425 425 425 425
2009 School Staffing Improvements for New Entrants 2008/09 1,327 1,385 1,335 1,385 1,385
Literacy and Numeracy in Secondary Schools 2008/09 204 102 - - -
Budget 2008 - Reprioritisation 2007/08 11 (63) (250) (250) (250)
Collective Agreements: Settlements for Teachers and Principals 2007/08 350 350 350 350 350
Expansion of Te Kotahitanga: Improving Maori Education 2007/08 103 103 103 103 103
New TeachNZ Scholarship 2007/08 175 175 175 175 175
Support for Schools Facing Gang Issues in Counties Manukau 2007/08 133 60 - - -
Learning and Achievement for Pasifika in the Mainstream 2006/07 1,618 1,618 1,618 1,618 1,618
Reprioritisation of Education Expenditure 2006/07 (350) (350) (350) (350) (350)

Support and Resources for the Community (M26)#

Scope of Appropriation

Expenditure on policies and programmes focused on the community's knowledge of and participation in the education system. This includes engaging with, providing information and support to, and delivering education courses to the community.

Expenses and Revenue

Expenses and Revenue - Support and Resources for the Community (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,492 14,492 14,378
Revenue from Crown 14,342 14,342 14,228
Revenue from Other 150 150 150

Output Performance Measures and Standards

Output Performance Measures and Standards - Support and Resources for the Community (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Development and Evaluation of Community Policy

     
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education. 100% 100% 100%
Ministerial satisfaction with the quality of policy advice provided. N/A 100% 100%
Quality of the Ministry's policy advice to Education Ministers and Cabinet Committees is assessed against the Ministry's Criteria for Assessing Policy Papers. >7.5/10 >7.5/10 >7.5/10
Percentage of policy that is provided within the agreed timeframes. 100% 100% 100%

Engagement and Provision of Information to the Community

     
Community-based support programmes for parents, families and whanau are operating in communities that have been identified as priority by Government. 100% 100% 100%
Priority communities are satisfied with quality of engagement in community-based support programmes. Feedback collected Feedback collected Feedback collected
Contracts for service and agreements between the Ministry and iwi align with Ka Hikitia - Managing for Success and meet the required contract management standards of the Ministry and the respective iwi and meet programme objectives. 100% 100% 100%
Activities occur at the time agreed between the Ministry of Education and iwi organisations and/or community providers. N/A 100% 100%

Provision of Services to the Community

     
Programmes are delivered and administered by the Ministry as per the agreed work programme. N/A 100% 100%
Provider groups, families and whanau are satisfied with the training and assistance provided. Feedback collected Feedback collected Feedback collected
Activities occur at the time agreed between the Ministry of Education and iwi organisations and/or community providers. N/A 100% 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Support and Resources for the Community (M26) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Savings - Reduce Support Function Expenditure 2009/10 (66) (95) (124) (124) (124)
Savings - Reduce Policy Advice Expenditure 2010/11 - (76) (76) (76) (76)
Savings - Realise Efficiencies in Information Campaigns 2009/10 (5,000) (5,000) (5,000) (5,000) (5,000)

Previous Government

           
Transfer of Parent Support and Development Programmes to the Ministry of Social Development 2008/09 (1,400) (1,400) (1,400) (1,400) (1,400)
Budget 2008 - Reprioritisation 2007/08 - - - - -
Child, Youth and Family's Capacity Building Strategy 2007/08 1,255 1,255 1,255 1,255 1,255
Children's and Young People's Lifestyle Initiatives 2006/07 425 - - - -

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Education
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Increasing opportunity for children to participate in quality early childhood education.
Impacts:
  • The proportion of Maori, Pasifika and children from low socio-economic areas attending high quality early childhood education rising to levels consistent with the general population.
Professional Development and Support (M26)
Provision of Information and Advisory Services (M26) (see Note 1)
Supporting Parenting (M26)
Outcome: Every child achieves literacy and numeracy levels that enable their success.
Impacts:
  • Literacy and numeracy levels increasing for those groups currently not achieving literacy and numeracy standards.
  • Every child making progress in line with their own skill levels to reach and exceed National Standards, regardless of where they go to school, their background, if they have a disability or have special education needs.
  • Teachers, principals and schools responding more quickly and effectively to the learning needs of students who are not achieving.
  • Greater levels of understanding and participation among parents in working with the teacher and their child to support the child's literacy and numeracy.
Curriculum Support (M26)
Education Research Initiatives (M26)
Professional Development and Support (M26)
Provision of Information and Advisory Services (M26) (see Note 1)
Qualifications Support Structures (M26) (see Note 2)
Quality Assurance (M26) (see Note 2)
School Transport (M26)
Supporting Parenting (M26)
Training for Designated Groups (M68) (see Note 3)
Outcome: Every young person has the skills and qualifications to contribute to their and New Zealand's future.
Impacts:
  • Increased student engagement and retention in education.
  • Fewer numbers of young people leaving education without worthwhile qualifications.
  • Reduced numbers of young people who are not in education, training or employment.
Curriculum Support (M26)
Education Research Initiatives (M26)
Managing the Government's Investment in the Tertiary Education Sector (M68) (see Note 3)
Professional Development and Support (M26)
Provision of Information and Advisory Services (M26) (see Note 1)
Qualifications Support Structures (M26) (see Note 2)
Quality Assurance (M26) (see Note 2)
School Transport (M26)
Secondary School Assessments (M26) (see Note 2)
Service Academies (M26)
Supporting Parenting (M26)
Training for Designated Groups (M68) (see Note 3)
Outcome: Relevant and efficient tertiary education provision that meets student and labour market needs.
Impacts:
  • Improved efficiency within the tertiary funding system and student support system.
  • Increased numbers of students completing tertiary qualifications at higher levels.
Centres of Research Excellence (M68) (see Note 3)
Education Research Initiatives (M26)
International Education Programmes (M68)
Managing the Government's Investment in the Tertiary Education Sector (M68) (see Note 3)
Ownership Monitoring of Tertiary Education Institutions (M68) (see Note 3)
Quality Assurance (M26) (see Note 2)
Service Academies (M26)
Tertiary Education and Training Policy Advice (M68) (see Note 3)
Tertiary Education: Student Achievement Component (M68) (see Note 3)
Training for Designated Groups (M68) (see Note 3)
Outcome: Maori enjoying education success as Maori.
Impacts:
  • More Maori students achieving their potential through education.
  • Improved support of Maori-medium education.
  • Increasing numbers of high quality Te Reo teachers entering the teaching profession.
Curriculum Support (M26)
Education Research Initiatives (M26)
Professional Development and Support (M26)
Provision of Information and Advisory Services (M26) (see Note 1)
School Transport (M26)
Supporting Parenting (M26)
Tertiary Education: Student Achievement Component (M68) (see Note 3)
Training for Designated Groups (M68) (see Note 3)
Outcome: The Ministry is capable, efficient and responsive to achieve education priorities.
Impacts:
  • All children, including those with disabilities and special education needs, achieve their full potential through education.
  • Improved efficiency in the way the Ministry operates.
  • Improved cost-effectiveness of the Government's expenditure in education.
Curriculum Support (M26)
Education Research Initiatives (M26)
International Education Programmes (M68)
Managing the Government's Investment in the Tertiary Education Sector (M68) (see Note 3)
Ownership Monitoring of Tertiary Education Institutions (M68) (see Note 3)
Professional Development and Support (M26)
Provision of Information and Advisory Services (M26) (see Note 1)
Qualifications Support Structures (M26) (see Note 2)
Quality Assurance (M26) (see Note 2)
School Transport (M26)
Secondary School Assessments (M26) (see Note 2)

Note 1 - For further information on the intended impacts, outcomes and objectives of the non-departmental output expense appropriation, please see the Statements of Intent Career Services and New Zealand Qualifications Authority.

Note 2 - For further information on the intended impacts, outcomes and objectives of the non-departmental output expense appropriations, please see the Statement of Intent New Zealand Qualifications Authority.

Note 3 - For further information on the intended impacts, outcomes and objectives of the non-departmental output expense appropriations, please see the Statement of Intent Tertiary Education Commission.

Centres of Research Excellence (M68)

Scope of Appropriation

Purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.

Expenses

Expenses - Centres of Research Excellence (M68) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 34,562 34,562 33,488

Reasons for Change in Appropriation

The decrease in the appropriation is owing to full implementation of the Budget 2009 decision to remove small funds to reduce administration costs ($666,000) and different levels of funding between the two years agreed in the contracts with each centre ($408,000).

Output Performance Measures and Standards

Output Performance Measures and Standards - Centres of Research Excellence (M68) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Annual Reports of each Centre of Research Excellence covering agreed reporting areas are approved by the Tertiary Education Commission by March 2011. New measure 100% 100%
The 2010/11 mid-term review of Centres of Research Excellence demonstrates alignment with programme purpose. New measure N/A 100%.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Centres of Research Excellence (M68) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Remove Specific Small Funds to Reduce Administration Costs 2009/10 (667) (1,333) (1,333) (1,333) (1,333)

Previous Government

           
2006/07 Centres of Research Excellence Selection Round Funding 2007/08 12,206 11,798 12,026 10,000 10,000

Curriculum Support (M26)#

Scope of Appropriation

Purchase of supplementary educational programmes for schools and communities to ensure wider access to these opportunities.

Expenses

Expenses - Curriculum Support (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 67,575 67,575 65,207
Laptops for Teachers and Principals 21,082 21,082 21,082
Other Information and Communications Technology 14,234 14,234 14,234
Literacy and Numeracy 6,038 6,038 6,038
Learning Experiences Outside the Classroom 4,964 4,964 4,964
Rural Education Activities Programme 3,858 3,858 3,973
Truancy Initiatives 6,342 6,342 6,510
Other Funding 11,057 11,057 8,406

Reasons for Change in Appropriation

The decrease in the appropriation is mainly owing to a combination of:

  • transfer of funding for Sport for Young Kiwis to non-departmental other expenses Primary Education and Secondary Education ($2.670 million decrease)
  • reduction in Students At-risk Innovations Pool ($915,000 decrease)
  • adjustment in professional development programmes reduced in Budget 2009 ($434,000 increase)
  • continuing the Kiwi Can programme ($300,000 increase), and
  • development of assessment tools to support the National Standards ($250,000 increase).

Output Performance Measures and Standards

Output Performance Measures and Standards - Curriculum Support (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity

     
Support for the implementation of National Standards in primary and intermediate schools.      
  • Number of teachers accessing postgraduate qualifications in literacy education (programme starting in 2010).
30 - 40 teachers 30 - 40 teachers 500 - 600 teachers
  • Number of schools provided with support brokered regionally by Literacy Development Officers.
150 - 200 schools 180 schools 150 - 250 schools
  • Number of teachers accessing postgraduate qualifications in mathematics (programme starting in 2010).
150 - 200 teachers 150 - 200 teachers 500 - 600 teachers
  • Number of schools involved in innovations to support the implementation of National Standards
80 - 100 schools 80 - 100 schools 80 - 100 schools
Percentage of principals and eligible teachers (at least half full-time equivalent) who have laptops. 100% of principals
84% - 86% of eligible teachers
100% of principals
84% - 86% of eligible teachers
100% of principals
86% - 88% of eligible teachers
Software licences will be provided free to all State and integrated schools that enrol. 180,000 - 182,000 Microsoft licences
Up to 30,000 Apple licences
210,000 E-trust anti-virus licence subscriptions
180,000 - 182,000 Microsoft licences
Up to 30,000 Apple licences
210,000 E-trust anti-virus licence subscriptions
Up to 227,500 Microsoft licences
Up to 30,000 Apple licences
230,000 E-trust anti-virus licence subscriptions
Schools will have the opportunity to access the Ministry's managed internet services and collaborative environment. 100% of schools will be approached
86% of schools will use the Ministry's managed internet services
100% of schools will be approached
86% of schools will use the Ministry's managed internet services
100% of schools will be approached
86% of schools will use the Ministry's managed internet services
Professional development will be provided to support gifted students. 50 schools supported
2 resources developed
9 regional symposia held
50 schools supported
2 resources developed
9 regional symposia held
50 schools supported
2 resources developed
9 regional symposia held
Number of student visits to Learning Experiences Outside the Classroom. 350,000 - 400,000 student visits 350,000 - 400,000 student visits 350,000 - 400,000 student visits
Number of schools and students receiving services under Books in Homes. 580 schools
90,000 - 105,000 students
580 schools
90,000 - 105,000 students
580 schools
90,000 - 105,000 students
Number of District Truancy Service contracts. 60 - 90 60 - 90 60 - 90
Student Engagement Initiative:      
  • Reduce suspensions of Maori students for schools with high Maori suspension rates.
1% reduction 1% reduction 1% reduction
  • Reduce suspensions of Pasifika students.
Reduce suspension rates by 20% by end of 2009/10 from the rates for 2005/06 Reduce suspension rates by 20% by end of 2009/10 from the rates for 2005/06 Reduce suspension rates by 20% by end of 2012 from the 2008 rate of 7.2 per 1,000
  • Reduce the student truancy rate in schools.
Reduce truancy rates by 20% by end of 2011/12 from the rates for 2006/07 Reduce truancy rates by 20% by end of 2011/12 from the rates for 2006/07 Reduce truancy rates by 20% by end of 2011/12 from the rates for 2006/07

Quality

     
Curriculum Support programmes delivered to targets specified in contracts with providers.
Mechanisms for managing contracts include milestone reports and monitoring of performance standards.
95% of contracts will be delivered to contract specifications 95% of contracts will be delivered to contract specifications 95% of contracts will be delivered to contract specifications

Timeliness

     
Curriculum Support programmes delivered within timelines specified in contracts with providers.
Mechanisms for managing contracts include milestone reports and monitoring of performance standards.
95% of contracts will be delivered on time 95% of contracts will be delivered on time 95% of contracts will be delivered on time
A register will be maintained of personal computers eligible to receive Microsoft and Apple licensed software, and audited annually. A count will be made by 31 December 2009 A count will be made by 31 December 2009 A full audit of eligible personal computers will be completed by 31 December 2010

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Curriculum Support (M26) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Adjustment to Schools Operations Grant Funding 2010/11 - 78 156 156 156
Continuing the Kiwi Can Programme 2010/11 - 300 300 300 300
Assessment Tools to Support National Standards 2010/11 - 250 250 100 100
Sport for Young Kiwis 2009/10 (2,630) (5,300) (5,300) (5,300) (5,300)
Additional Funding to Fight Truancy on the Front Line (see Note 1) 2009/10 666 834 - - -
Increased Operational Funding for Schools 2009/10 42 83 82 82 82
Savings - Cease School Support Programmes 2009/10 (815) (1,730) (1,730) (1,730) (1,730)
Savings - Cease Curriculum Support Programmes 2009/10 (300) (600) (600) (600) (600)
Savings - Cease Professional Development Programmes 2009/10 (564) (130) (130) (130) (130)

Previous Government

           
2009 School Staffing Improvements for New Entrants 2008/09 454 454 454 454 454
Annual Adjustment to Schools' Operational Funding 2008/09 116 116 116 116 116
Budget 2008 - Reprioritisation 2008/09 (467) (467) (467) (467) (467)
Artists in Schools Programme 2007/08 600 600 600 600 600
Funding Increase for the District Truancy Service 2007/08 273 523 523 523 523
Reprioritisation of Baselines - Families - Young and Old 2007/08 (400) (400) (400) (400) (400)
School Staffing Improvements 2007/08 400 400 400 400 400
Schools' Operational Funding Package 2007/08 143 143 143 143 143
Books in Homes 2006/07 252 252 252 252 252
Reprioritisation of Education Expenditure 2006/07 (435) (435) (435) (435) (435)
Software Licensing Agreements for New Zealand Schools 2006/07 10,864 10,864 10,864 10,864 10,864
Gifted and Talented Student Initiatives: Additional Resources 2005/06 200 200 200 200 200

Note 1 - This initiative was originally appropriated in non-departmental other expense Secondary Education.

Education Research Initiatives (M26)#

Scope of Appropriation

Purchase of research about teaching and learning in our educational institutions and independent research on education issues, policies and practices.

Expenses

Expenses - Education Research Initiatives (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,130 3,130 2,980
New Zealand Council for Educational Research 1,452 1,452 1,452
Teaching and Learning Research Initiative 1,678 1,678 1,528

Reasons for Change in Appropriation

The decrease in the appropriation is owing to a higher level of reallocation toward a longitudinal study in 2010/11 ($150,000).

Output Performance Measures and Standards

Output Performance Measures and Standards - Education Research Initiatives (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity and Timeliness

     
Research projects will be completed or advanced to the position mutually agreed in the annual Purchase Agreement between the New Zealand Council for Educational Research (NZCER) and the Ministry of Education. 100% 100% 100%
Research projects will be completed or advanced to the position agreed by the Board of the Teaching and Learning Research Initiative in the annual programme of research. 100% 100% 100%

Quality

     
NZCER research projects comply with systematic internal quality assurance processes and key tasks or documents that are supported by external peers. 100% 100% 100%
NZCER research projects are signed-off by the Director of NZCER or nominee. 100% 100% 100%
The programme of research funded through the Teaching and Learning Research Initiative both:
  • delivers research projects and builds a research capability that is recognised as excellent by local and international standards, and
  • supports the aims and objectives of the Initiative.
100% 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Education Research Initiatives (M26) - Education
Reference Conditions
New Zealand Council for Educational Research Act 1972. The functions of the Council are to:
  • foster the study of, and research into, education and other like matters and to prepare and publish reports that in its opinion are necessary or of value to teachers or other persons, and
  • furnish information, advice and assistance to persons and organisations concerned with education and other similar matters.
These are reflected in the annual purchase agreement with New Zealand Council for Educational Research.
The Teaching and Learning Research Initiative. The aims of the Teaching and Learning Research Initiative are to:
  • build a cumulative body of knowledge linking teaching and learning
  • enhance the links between educational research and teaching practices and researchers and teachers across early childhood, schools and tertiary sectors, and
  • grow research capability and capacity in the areas of teaching and learning.
The five principles that guide Teaching and Learning Research Initiative research projects and related activities are found at www.tlri.org.nz.
These aims and principles form part of the call for proposals process for projects funded through the Teaching and Learning Research Initiative annual programme.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Education Research Initiatives (M26) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Savings - Roll back Planned Funding for Careers Advice 2009/10 (100) (100) (100) (100) (100)

Previous Government

           
Careers Education in Secondary Schools 2006/07 100 100 100 100 100

International Education Programmes (M68)#

Scope of Appropriation

This appropriation is limited to delivery of services in respect to international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of managing and increasing the flow of international students and promoting international education linkages.

Expenses

Expenses - International Education Programmes (M68) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,789 5,789 6,006

Reasons for Change in Appropriation

The increase in the appropriation is owing to the transfer of the Export Education Innovations Programme from non-departmental other expense Tertiary Education Grants and Other Funding ($217,000 increase).

The appropriation has been renamed this year from Tertiary and International Advisory Services (refer to Part 1.4 for details).

Output Performance Measures and Standards

Output Performance Measures and Standards - International Education Programmes (M68) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity

     
International promotions activities delivered according to agreed annual programme of work. 100% 100% 100%

Quality

     
Recipients of the service express satisfaction with the appropriateness and effectiveness of the information or advice (or another quality measure as agreed with each provider).
  • Appropriateness: the extent to which the focus of the information provided is consistent with users' needs.
  • Effectiveness: accuracy - all material facts are included and are accurate; timeliness - information is provided within the times required.
Detailed quarterly reports on service delivery
Annual survey on stakeholder satisfaction with services delivered
Detailed quarterly reports on service delivery
Annual survey on stakeholder satisfaction with services delivered
Detailed quarterly reports on service delivery
Annual survey on stakeholder satisfaction with services delivered
International promotions and other activities designed and delivered according to the procedures specified in the agreed annual programme of work. 100% 100% 100%

Timeliness

     
Information and advisory services provided within the agreed timeframes. As agreed in the Output Agreement with the provider As agreed in the Output Agreement with the provider As agreed in the Output Agreement with the provider

Conditions on Use of Appropriation

Conditions on Use of Appropriation - International Education Programmes (M68) - Education
Reference Conditions
Cabinet decision This appropriation follows Cabinet decisions in 2004 to fund a work programme for the development of the international education sector.
The work programme includes support for promotions, market research, professional development, and operational funding for the lead sector body - Education NZ (the Education New Zealand Trust).
The work programme is managed by Education NZ, under the terms of an annual contract with the Ministry of Education.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - International Education Programmes (M68) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
International Education Promotions 2010/11 - 2,000 2,000 2,000 2,000
Promote Greater Enrolment of International Students 2009/10 2,000 - - - -
Savings - International Education (see Note 1) 2009/10 (450) (450) (450) (450) (450)

Previous Government

           
Savings - International Education 2009/10 (150) (150) (150) (150) (150)
International Education Promotions 2008/09 450 450 450 450 450
International Education Promotions 2007/08 500 500 500 500 500

Note 1 - This initiative was originally appropriated under non-departmental other expense Tertiary Education Grants and Other Funding.

Managing the Government's Investment in the Tertiary Education Sector (M68)#

Scope of Appropriation

This appropriation is limited to developing, implementing and managing an investment system that aligns planning, funding, monitoring and quality assurance of tertiary education in accordance with the provisions of the Education Act 1989 and other relevant legislation.

Expenses

Expenses - Managing the Government's Investment in the Tertiary Education Sector (M68) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 41,877 41,877 34,530
Tertiary Education Commission 41,768 41,768 34,421
Maori Education Trust 109 109 109

Reasons for Change in Appropriation

The decrease in the appropriation is owing to a combination of:

  • funding changes for the Supporting the Distinctive Contributions of the Institutes of Technology and Polytechnics Sub-sector initiative ($5.625 million decrease)
  • reduced funding for development of an adult literacy and numeracy assessment tool ($2.265 million decrease)
  • reducing the growth in funding for literacy, language and numeracy programmes from 2009/10 ($850,000 decrease)
  • changes in operating funding related to streamlined services ($1.025 million increase), and
  • changes in funding allocated for policy advice and leadership of the tertiary reforms ($1 million increase).

Output Performance Measures and Standards

Output Performance Measures and Standards - Managing the Government's Investment in the Tertiary Education Sector (M68) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
2011-13 Plan Guidance sets out the shifts expected by tertiary education organisations to implement the Tertiary Education Strategy during the next Plan cycle. New measure Achieved Achieved
Plans for tertiary education institutions include targets for improving achievement rates for priority groups in the Tertiary Education Strategy. New measure N/A 100%
Percentage of 2011-13 Plans approved by the Tertiary Education Commission (TEC) by 1 December 2010 that satisfactorily meet the TEC's Plan Guidance and funding criteria. New measure 98% 98%
Payments are made to tertiary education organisations as per the agreed contractual terms and conditions. 100% 100% 100%
Interventions, including changes to funding, are made in response to tertiary education organisation performance. New measure 100% 100%
Tertiary education organisation performance information is published annually by 1 August. New measure N/A 100%
Programme evaluations are completed in accordance with the 2010/11 Programme Evaluation Plan. New measure N/A Achieved
Service Centre Customer Satisfaction Surveys indicate levels of satisfaction that are at least comparable to other State Sector Agencies participating in the 2009 Kiwis Count survey. New measure N/A New baseline to be established and reported against in the TEC's 2010/11 Annual Report

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Managing the Government's Investment in the Tertiary Education Sector (M68) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Contribution to the Establishment and Operating Costs of the Productivity Commission 2010/11 - (70) (140) (150) (150)
Reduce the Growth in Funding for Literacy, Language and Numeracy Programmes from 2009/10 2009/10 (1,100) (1,950) (2,300) (5,010) (5,010)
Reduce the Tertiary Education Commission's Operating Funding Through Streamlined Services 2009/10 (4,608) (3,583) (3,583) (3,583) (3,583)
Savings - Reduce or Cease Small Funds with High Compliance Costs 2009/10 (210) (420) (420) (420) (420)

Previous Government (see Note 1)

           
Skills Strategy - Literacy, Language and Numeracy 2008/09 5,750 5,498 5,498 5,498 5,498
Skills Strategy Programme Office 2008/09 1,240 - - - -
Tertiary Education Commission: Policy Advice and Leadership of Tertiary Reforms 2008/09 4,175 5,175 5,175 5,175 5,175
Development of Information Technology Systems and Data Collections to Support Tertiary Reforms 2007/08 300 300 300 300 300
Strengthening Infrastructure and Provision to Upskill the Workforce 2007/08 1,558 1,833 1,115 1,195 1,280
Supporting the Distinctive Contribution of the Institutes of Technology and Polytechnics Sub-Sector 2007/08 5,625 - - - -
Expanding Gateway Opportunities to all State Secondary Schools 2006/07 459 459 459 459 459
Modern Apprenticeships Expansion 2006/07 950 950 950 950 950
Upskilling the Workforce 2006/07 1,112 1,112 1,112 1,112 1,112

Note 1 - Prior to 2008/09 these initiatives were originally appropriated under the non-departmental output appropriations Developing Strategic Coherence Across the Tertiary Sector, and Management of Grants and Contracts.

Ownership Monitoring of Tertiary Education Institutions (M68)#

Scope of Appropriation

This appropriation is limited to monitoring and advisory services - including interventions - on the government's ownership interest in tertiary education institutions.

Expenses

Expenses - Ownership Monitoring of Tertiary Education Institutions (M68) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,567 2,567 2,567

Output Performance Measures and Standards

Output Performance Measures and Standards - Ownership Monitoring of Tertiary Education Institutions (M68) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Minister is satisfied with advice on council appointments (scale 1 to 5, 1 = unsatisfactory, 2 = poor, 3 = satisfactory, 4 = good, 5 = excellent). New measure 3 3 or better
Advice on monitoring of Tertiary Education Institutions performance to the Minister and for the Cabinet Expenditure Control Committee is graded by central agencies (scale 1 to 5, 1 = unsatisfactory, 2 = poor, 3 = satisfactory, 4 = good, 5 = excellent). New measure 3 3 or better
Minister is satisfied with advice on intervention options (scale 1 to 5, 1 = unsatisfactory, 2 = poor, 3 = satisfactory, 4 = good, 5 = excellent). New measure 3 3 or better

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Ownership Monitoring of Tertiary Education Institutions (M68) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Reduce the Tertiary Education Commission's Operating Funding Through Streamlined Services 2009/10 (2,408) (1,908) (1,908) (1,908) (1,908)

Previous Government

           
Tertiary Education Commission: Policy Advice and Leadership of Tertiary Reforms 2008/09 2,000 1,500 1,500 1,500 1,500
Relocating the Ownership Monitoring and Related Functions for Tertiary Education Institutions (see Note 1) 2006/07 1,179 1,179 1,179 1,179 1,179

Note 1 - This initiative was originally appropriated under non-departmental output expense Developing Strategic Coherence Across the Tertiary Sector.

Professional Development and Support (M26)#

Scope of Appropriation

Delivery of professional development and advisory support to staff, managers and parents in early childhood education services and in schools, to support effective teaching and enhance self-management.

Expenses

Expenses - Professional Development and Support (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 99,089 98,789 91,385
Information and Communications Technology Professional Development 11,839 11,839 11,210
Infrastructural Professional Development 34,065 33,765 26,640
Literacy, Numeracy and English for Speakers of Other Languages 18,947 18,947 18,587
Maori Achievement Professional Development 14,156 14,156 12,349
Maori Medium Education Professional Development 4,188 4,188 4,438
Principals' Professional Development 2,524 2,524 2,524
Early Childhood Professional Development 8,611 8,611 6,606
Other Funding 4,759 4,759 9,031

Reasons for Change in Appropriation

The decrease in the appropriation is mainly owing to a combination of:

  • previous adjustments for funding the Mission-On initiative ($3.425 million decease)
  • savings agreed in Budget 2009 from ceasing professional development programmes ($1.689 million decrease)
  • decisions in Budget 2008 to reprioritise funding ($1.342 million decrease)
  • changes in funding supporting literacy and numeracy in secondary schools ($1.210 million decrease)
  • savings agreed in Budget 2009 from ceasing or re-targeting early childhood education professional development ($804,000 decrease)
  • changes in the timing of support for boards of trustees ($663,000 decrease)
  • additional support for school boards of trustees in implementing the National Standards ($1 million increase), and
  • changes related to Te Kotahitanga and He Kakano programmes ($2.153 million increase).

Output Performance Measures and Standards

Output Performance Measures and Standards - Professional Development and Support (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity

     
Number of early childhood education professional development programmes. 40 - 50 40 - 50 30 - 40
Number of hours of school advisory services purchased from contracted providers. These contracts cover professional development for a number of programmes. 170,000 - 200,000 hours 170,000 - 200,000 hours 170,000 - 200,000 hours
Number of hours of additional school support purchased from contracted providers. These contracts cover professional development for a number of programmes. 140,000 - 160,000 hours 140,000 - 160,000 hours 110,000 - 130,000 hours
Number of schools provided with professional learning in effective teaching and learning strategies based on assessment for learning principles. 130 - 160 schools 130 - 160 schools 130 - 160 schools
Number of schools working in supported local clusters to develop the capability and capacity to make strategic and effective use of Information and Communications Technology (ICT) to improve students' educational outcomes.
School leaders are supported to choose targets appropriate to their needs and implement programmes that focus on skill acquisition, applying skills in practice and understanding the benefits of ICT integration.
2009 calendar year
75 cluster projects involving 380 schools (approximately 11,400 full-time teacher equivalents)
2010 calendar year
96 cluster and secondary school projects involving 493 schools (approximately 13,260 full-time teacher equivalents)
2009 calendar year
75 cluster projects involving 380 schools (approximately 11,400 full-time teacher equivalents)
2010 calendar year
86 cluster and secondary school projects involving 442 schools (approximately 13,260 full-time teacher equivalents)
2010 calendar year
86 cluster and secondary school projects involving 442 schools (approximately 13,260 full-time teacher equivalents)
2011 calendar year
77 cluster and secondary school projects involving 395 schools (approximately 11,872 full-time teacher equivalents)
Number of schools working in supported regional clusters to develop the capability and capacity to make strategic and effective use of Information and Communications Technology (ICT) to improve students' educational outcomes.
School leaders are supported to choose targets appropriate to their needs and implement programmes that focus on skill acquisition, applying skills in practice and understanding the benefits of ICT integration.
6 regional cluster projects involving approximately 135 schools (approximately 4,065 full-time teacher equivalents) 6 regional cluster projects involving approximately 135 schools (approximately 4,065 full-time teacher equivalents) 12 regional cluster projects involving approximately 271 schools (approximately 8,130 full-time teacher equivalents)
Professional development support provided for Technology Education including additional resources made available on Tech-link website. 3,215 hours
160 resources
3,215 hours
160 resources
3,215 hours
160 resources
Number of schools involved in Te Kotahitanga programme to improve teaching and learning practices to create culturally responsive learning environments. N/A 32 schools 45 - 50 schools
Number of secondary schools' leadership teams participating in professional development programmes to raise Maori achievement. 100 schools 100 schools 100 schools
Number of Maori secondary teachers involved in the Ako Panuku programme. N/A 400 Maori secondary teachers 500 - 600 Maori secondary teachers
Number of educators provided with support to assist Maori-medium level 1 and 2 schools to develop, trial and implement localised curricula to align with Te Marautanga o Aotearoa. 1,000 - 1,500 educators 1,000 - 1,500 educators 1,000 - 1,500 educators
Number of schools participating in initiatives to improve the English language and literacy of Pasifika students. 10 schools 10 schools 10 schools
Number of first-time principals provided with induction programme. 200 principals 200 principals 200 principals
Number of experienced principals provided with professional development to support them to achieve Government priorities. 300 principals 300 principals 300 principals
Number of Initial Teacher Education students that experience practicums in isolated schools or Auckland secondary schools. 800 students 800 students 800 students
Professional development and support provided to teachers and tutors in Reading Recovery roles, including tutors trained to teach teachers Reading Recovery skills, new and existing Reading Recovery teachers. 4 tutors
270-300 new teachers
1,050 - 1,200 existing teachers
4 tutors
270-300 new teachers
1,050 - 1,200 existing teachers
4 tutors
270-300 new teachers
1,050 - 1,200 existing teachers
Number of Teacher Refresher Course Committee participant days for national professional development. 3,200 - 3,600 days 3,200 - 3,600 days 3,200 - 3,600 days
Number of New Zealand teachers going on exchange programmes.
Number of international teacher assistants coming to New Zealand.
N/A 37 teachers


21 teacher assistants
37 teachers


21 teacher assistants

Quality

     
Professional development programmes delivered to standards specified in contracts with providers.
Mechanisms for managing contracts include milestone reports and monitoring of performance standards.
95% of contracts will be delivered to contract specifications 95% of contracts will be delivered to contract specifications 95% of contracts will be delivered to contract specifications

Timeliness

     
Professional development programmes delivered within timelines specified in contracts with providers.
Mechanisms for managing contracts include milestone reports and monitoring of performance standards.
95% of contracts will be delivered on time 95% of contracts will be delivered on time 95% of contracts will be delivered on time

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Professional Development and Support (M26) - Education
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Savings - Better Targeting of Teacher Supply Initiatives in Early Childhood 2010/11 - (356) (356) (356) (356)
Board of Trustees Training 2010/11 - 1,000 - - -
Assessment Tools to Support National Standards 2010/11 - 250 250 500 500
Positive Behaviour for Learning Action Plan: Implementation 2009/10 (450) (811) (811) (811) (811)
Expanding Te Kotahitanga 2009/10 3,966 6,559 4,888 4,500 4,500
Savings - Cease Professional Development Programmes 2009/10 (5,101) (6,320) (6,320) (6,320) (6,320)
Savings - Cease Professional Development Programmes 2010/11 - (1,104) (1,104) (1,104) (1,104)
Savings - Cease or Re-target Funding for Early Childhood Education Professional Development 2009/10 (1,944) (2,748) (2,607) (2,548) (2,548)

Previous Government

           
Baselining for Funding for Mission-On and the Stage Challenge 2010/11 - (3,425) (3,425) (3,425) (3,425)
2009 School Staffing Improvements for New Entrants 2008/09 300 150 150 150 150
Budget 2008 - Reprioritisation 2008/09 (2,128) (3,470) (3,529) (3,529) (3,529)
Literacy and Numeracy in Secondary Schools 2008/09 4,258 3,048 756 756 756
Expansion of Te Kotahitanga: Improving Maori Education 2007/08 4,910 4,470 4,470 4,470 4,470
Listening and Assistance Service: Draft Terms of Reference, Appointment of Chair and Funding 2007/08 (222) (222) (222) (222) -
Reprioritisation of Baselines - Families - Young and Old 2007/08 (2,872) (3,186) (3,186) (3,186) (3,186)
Education for Sustainability (Environmental Education) 2006/07 4,407 4,407 4,407 4,407 4,407
School Support Services Baseline Funding 2006/07 1,740 1,740 1,740 1,740 1,740
Secondary Teachers' Collective Agreement: Amendments to Reflect Longer Term Strategic Work Programme 2006/07 300 - - - -
Reprioritisation of Education Expenditure 2005/06 (6,054) (6,054) (6,054) (6,054) (6,054)

Provision of Information and Advisory Services (M26)#

Scope of Appropriation

Providing information on government education policy and programmes, general information, advisory programmes, and services to the public, community groups, industry and the education community.

Expenses

Expenses - Provision of Information and Advisory Services (M26) - Education
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 22,999 22,629 22,342

Reasons for Change in Appropriation

The decrease in the appropriation is owing to the full-year effect of reducing curriculum support programmes in Budget 2009 ($375,000 decrease) and one-off funding in 2009/10 to boost participation in early childhood education ($260,000 decrease).

Output Performance Measures and Standards

Output Performance Measures and Standards - Provision of Information and Advisory Services (M26) - Education
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity

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