Information supporting the estimates of appropriations

Education and Science Sector - Information Supporting the Estimates of Appropriations for the Government of New Zealand for the Year Ending 30 June 2010

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.

Formats and related files

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 2009/10 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 the Estimates
  • 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

Statement 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)#

Redevelopment of Whitireia Community Polytechnic Porirua Campus (M68)#

Scope of Appropriation#

This appropriation is limited to redevelopment of the trades training facilities and the construction of a new Health Education and Social Services block at the Porirua campus of Whitireia Community Polytechnic.

Capital Expenditure#

Capital Expenditure - Redevelopment of Whitireia Community Polytechnic Porirua Campus (M68) - Education
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 1,080

Reasons for Change in Appropriation#

The increase in appropriation in 2009/10 is owing to the timing of asset disposals upon which the capital injection is dependent.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Redevelopment of Whitireia Community Polytechnic Porirua Campus (M68) - Education
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Whitireia Community Polytechnic - Trades Training Facilities and Health Service Block 2008/09 - 1,080 - - -

School Support Project (M26)#

Scope of Appropriation#

Capital costs of implementing approved school support and schooling improvement projects (other than costs related to school property assets).

Capital Expenditure#

Capital Expenditure - School Support Project (M26) - Education
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,880 1,880 1,880

Schools Furniture and Equipment (M26)#

Scope of Appropriation#

Provides funds to schools for new furniture and equipment when capital works (including remodelling/upgrading of existing property and new school property) are approved.

Capital Expenditure#

Capital Expenditure - Schools Furniture and Equipment (M26) - Education
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 19,989 19,989 23,903

Reasons for Change in Appropriation#

The increase in appropriation in 2009/10 is owing to different levels of expenditure on new schools, classroom replacement and other initiatives between the two years.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Schools Furniture and Equipment (M26) - Education
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
21st Century Building Programme 2009/10 - 6,133 5,994 5,048 -
2009 School Staffing Improvements for New Entrants 2009/10 - 297 820 334 -
2008/09 School Property Business Case 2009/10 - 2,790 940 - -
School Property Business Case 2007/08 7,326 4,670 - - -
School Staffing Improvements 2007/08 1,095 657 - - -
2006/07 School Property Business Case 2005/06 2,212 - - - -

UCOL Whanganui Campus Redevelopment (M68)#

Scope of Appropriation#

Crown support for the development of the Universal College of Learning Whanganui Campus.

Capital Expenditure#

Capital Expenditure - UCOL Whanganui Campus Redevelopment (M68) - Education
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 1,000 1,800

Reasons for Change in Appropriation#

The increase in appropriation is owing to a difference in the phasing of expenditure between the years in the agreed funding profile for the initiative.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - UCOL Whanganui Campus Redevelopment (M68) - Education
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Future Model for Tertiary Education in Whanganui 2006/07 1,000 1,800 - - -

University of Auckland Institute for Innovation in Biotechnology (M68)#

Scope of Appropriation#

Suspensory loan under the Partnerships for Excellence programme for the establishment of a biotechnology and innovation centre for graduate training and research at the University of Auckland.

Capital Expenditure#

Capital Expenditure - University of Auckland Institute for Innovation in Biotechnology (M68) - Education
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,000 6,000 2,000

Reasons for Change in Appropriation#

The decrease in appropriation in 2009/10 is owing to a re-phasing of expenditure between the years to meet contract specifications.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - University of Auckland Institute for Innovation in Biotechnology (M68) - Education
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Partnerships for Excellence Projects 2004/05 6,000 2,000 - - -

Wananga and Institutes of Technology and Polytechnics Infrastructure Fund (M68)#

Scope of Appropriation#

This appropriation is limited to funding infrastructure development projects, including development of systems, by Wananga and Institutes of Technology and Polytechnics that fulfil legislative requirements, address government requirements applied to either sub-sector, or fulfil commitments under individual Investment Plans.

Capital Expenditure#

Capital Expenditure - Wananga and Institutes of Technology and Polytechnics Infrastructure Fund (M68) - Education
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,494 3,494 1,888
Institutes of Technology and Polytechnics sector 2,397 2,397 1,400
Wananga sector 1,097 1,097 488

Reasons for Change in Appropriation#

The decrease in appropriation is owing to a difference in phasing of expenditure between the years in the agreed funding profile for the initiative.

Expected Results#

Expected Results - Wananga and Institutes of Technology and Polytechnics Infrastructure Fund (M68) - Education
  2008/09 2009/10
  Budgeted
Standard
$000
Estimated Actual
Standard
$000
Budget
Standard
$000
Development of document management systems. - - 1,400
Improved management information systems for institution-wide data management and reporting, including key performance indicators. 922 922 488
Replacement of assets directly related to engineering and trades. 1,000 1,000 -
Information technology upgrades to link into shared and collaborative systems. 400 400 -
Implementation of new library and learning commons. 398 398 -
Development of online student management and support systems. 370 370 -
Development of real time assessment tool. 205 205 -
Development of information systems for multi campus environments. 199 199 -

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Wananga and Institutes of Technology and Polytechnics Infrastructure Fund (M68) - Education
Reference Conditions
Cabinet decision Only projects approved by Cabinet will be funded through this appropriation.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Wananga and Institutes of Technology and Polytechnics Infrastructure Fund (M68) - Education
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Wananga and Institutes of Technology and Polytechnics Infrastructure Fund 2008/09 3,494 1,888 - - -

WelTec Financial Assistance (M68)#

Scope of Appropriation#

Restructuring of Crown assistance to Wellington Institute of Technology through the conversion of loans to equity to help secure its sustainability.

Capital Expenditure#

Capital Expenditure - WelTec Financial Assistance (M68) - Education
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 350 350 4,150

Reasons for Change in Appropriation#

The increase in appropriation is owing to the institution expecting to meet the criteria for converting its Crown loan to equity during this year.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - WelTec Financial Assistance (M68) - Education
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Response to Wellington Institute of Technology Business Case 2006/07 350 4,150 - - -

Western Institute of Technology at Taranaki (M68)#

Scope of Appropriation#

Financial assistance to the Western Institute of Technology at Taranaki to manage cash flow issues.

Capital Expenditure#

Capital Expenditure - Western Institute of Technology at Taranaki (M68) - Education
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 4,000

Reasons for Change in Appropriation#

The increase in appropriation is owing to a transfer to 2009/10 of an underwrite facility not required in 2008/09.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Western Institute of Technology at Taranaki (M68) - Education
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Western Institute of Technology at Taranaki: Crown Loan Request 2005/06 - 4,000 - - -
Western Institute of Technology at Taranaki: Report Back on Government Interventions 2006/07 400 - - - -

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Education
Appropriation Reporting Mechanism
College of Education Mergers (M68) Annual report of the individual tertiary education institutions
Institutes of Technology and Polytechnics Distinctive Contributions (M68) Annual report of the Tertiary Education Commission, annual reports of individual tertiary education institutions where applicable
Investment in Te Wananga o Aotearoa (M68) Annual report of the tertiary education institution
National Assessment Tool for Adult Literacy, Numeracy and Language (M68) Annual report of the Tertiary Education Commission
Nelson Marlborough Institute of Technology Visual Arts and Media Block (M68) Annual report of the tertiary education institution
NZQA Technology (M26) Annual report of the New Zealand Qualifications Authority
Property Disposal Incentives Scheme (M26) Annual reports of individual schools where applicable
Quality Reinvestment Programme (M68) Annual report of the Tertiary Education Commission, annual reports of individual tertiary education institutions where applicable
Redevelopment of Whitireia Community Polytechnic Porirua Campus (M68) Annual report of the tertiary education institution
School Support Project (M26) Annual reports of individual schools where applicable
Schools Furniture and Equipment (M26) Annual reports of individual schools where applicable
UCOL Whanganui Campus Redevelopment (M68) Annual report of the tertiary education institution
University of Auckland Institute for Innovation in Biotechnology (M68) Annual report of the Tertiary Education Commission, annual report of the tertiary education institution
Wananga and Institutes of Technology and Polytechnics Infrastructure Fund (M68) Annual report of the Tertiary Education Commission, annual reports of individual tertiary education institutions where applicable
WelTec Financial Assistance (M68) Annual report of the tertiary education institution
Western Institute of Technology at Taranaki (M68) Annual report of the tertiary education institution

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

Performance Information for Appropriations Vote Research, Science and Technology#

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

ADMINISTERING DEPARTMENT: Ministry of Research, Science and Technology

MINISTER RESPONSIBLE FOR MINISTRY OF RESEARCH, SCIENCE AND TECHNOLOGY : Minister of Research, Science and Technology

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 Research, Science and Technology (RST) for the 2009/10 financial year covering the following:

Departmental Appropriations

A total of nearly $15 million (2% of the Vote) for advice on research, science and technology that supports New Zealand's knowledge base and its capacity to innovate, and for managing Vote RST contracts and agreements, and delivering on the outcome for science and technology transforming New Zealanders' lives.

Non-Departmental Appropriations

A total of $730 million (98% of the Vote) contributes toward Government's priority for getting measurable benefits from New Zealand's investment in research, science and technology.

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

Part 1.2 - High-Level Objectives of the Vote#

Research, science and technology (RS&T) is important to New Zealanders' quality of life and New Zealand's future. RS&T is responsible for producing ideas and knowledge that drive innovation. Those ideas are taken up and applied, not just in commercial products that fuel economic growth, but throughout society by enhancing New Zealanders' health and lifestyle, and in understanding how to make the most of our natural resources and protect our environment.

The Government is committed to New Zealand science. It recognises the vital role science plays in providing evidence for quality decision making, creating new knowledge to drive economic growth, and enriching our society. It also seeks measurable benefits from New Zealand's investment in research, science and technology.

Gearing the science system for a higher level of performance will require change. The Government has outlined its key priorities that will guide any changes. These are:

  • simplicity in the mechanisms for science funding and delivery
  • clarity of roles in the science system
  • efficiency and measurability in delivery, and
  • relevance of science for New Zealand's needs.

The appropriations within Vote RST contribute to the Government priority of getting measurable benefits from New Zealand's investment in research, science and technology.

Summary of Financial Activity#

Summary of Financial Activity - Research, Science and Technology
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  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 541,025 615,809 635,095 618,028 548,671 547,496 13,791 568,139 581,930 582,573 576,026 576,026
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 454 1,974 5,504 3,245 135,510 135,010 - 161,403 161,403 145,621 146,454 145,804
Capital Expenditure 17,324 7,245 2,774 4,180 5,084 5,084 730 1,000 1,730 16,345 480 600
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

558,803 625,028 643,373 625,453 689,265 687,590 14,521 730,542 745,063 744,539 722,960 722,430

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 - Research, Science and Technology
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Marsden Fund Marsden Fund (M56)
Non-departmental output class
- 9,000 9,000 9,000 9,000
Health Research Health Research (M56)
Non-departmental output class
- 8,000 8,000 8,000 8,000
Crown Research Institute (CRI) Capability Fund CRI Capability Fund (M56)
Other expense to be incurred by the Crown
- 10,000 10,000 10,000 10,000
Prime Minister's Prizes for Science Engaging New Zealanders with Science and Technology (M56)
Non-departmental output class
- 1,000 1,000 1,000 1,000
Information Technology System for the Foundation for Research Science and Technology Research and Development Facilitation and Promotion Service (M56)
Non-departmental output class
(1,000) - - - -
  Foundation for Research, Science and Technology (M56)
Capital Expenditure
- 1,000 - - -
Kiwi Advanced Research and Education Network (KAREN) Research and Education Advanced Network Limited (M56)
Capital Expenditure
- - 16,000 - -
Reversing Unfunded 2008 Budget Commitments for Economic Transformation: Innovation Environmental Research (M56)
Non-departmental output class
- (13,888) (6,000) (6,000) (6,000)
  Marsden Fund (M56)
Non-departmental output class
- - (1,000) (4,000) (4,000)
  New Economy Research Fund (M56)
Non-departmental output class
- (1,778) (5,000) (7,000) (7,000)
  Research for Industry (M56)
Non-departmental output class
- (8,611) (4,998) (6,918) (6,918)
  Sustainable Energy Development (M56)
Non-departmental output class
- - - (4,000) (4,000)
  Pre-Seed Accelerator Fund (M56)
Other expense to be incurred by the Crown
- (3,000) (3,000) (3,000) (3,000)
  International Investments Opportunities Fund (M56)
Other expense to be incurred by the Crown
- (889) - - -
  Technology New Zealand (M56)
Other expense to be incurred by the Crown
- (9,200) (750) (250) -
Vote RST Departmental Savings Advice on Shaping the Science System (M56)
Policy Advice (funded by Revenue Crown)
Departmental Output Expenses
- (180) (250) (250) (250)
Total   (1,000) (8,546) 23,002 (3,168) (3,168)

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote RST, are discussed briefly below.

Vote trends in actual expenses and capital expenditure by appropriation type
Vote trends in actual expenses and capital expenditure by appropriation type
Source: Ministry of Research, Science and Technology

Output Trends 2004/05 to 2009/10

Appropriations for departmental output expenses have risen from $12.873 million in 2004/05 to $13.791 million in 2009/10. Most of this increase occurred in the Policy Advice output expense. MoRST has applied the increase to support its leadership role in the science system, increase evaluation, and to support new strategies such as the New Zealand Biotechnology Strategy and the RST International Linkages Strategy.

In 2006/07 the Policy Advice and Contract Management output expenses were combined into a multi-class output appropriation Advice on Shaping the Science System. This change was made to enhance the flexibility in managing the funding that sits within the Policy Advice and Contract Management outputs.

Between 2004/05 and 2009/10, two departmental output expenses have been discontinued or transferred to other Votes:

  • In 2005/06 the Growth and Innovation Advisory Board departmental output expense ($1.268 million) was transferred from Vote RST to Vote Economic, Industry and Regional Development.
  • The departmental output expense APEC Science Ministers' Meeting existed over the period 2002/03 and 2004/05 to provide for the meeting held in Christchurch in March 2004.

Output Expenses - Non-Departmental

Significant trends in comparative actual and estimated expenses for non-departmental output expense appropriations under this Vote are shown in Figure 1.

The steady growth over the period 2004/05 to 2007/08 reflects the investment being made in science outputs and to develop private sector research and development. The drop from 2008/09 is a consequence of a change in appropriation type for some output expenses. This change in appropriation type was due to the activity being in the nature of a grant scheme. Grant schemes are another expense whereas the output expenses relate to research outputs by research providers.

Other Expenses to be Incurred for the Crown

Significant trends in comparative actual and estimated expenses for other expenses to be incurred for the Crown appropriations under this Vote are shown in Figure 1.

The increase in 2008/09 is a result of a change in appropriation type from non-departmental output expense for six appropriations (Advanced Network, Crown Research Institute (CRI) Capability Fund, International Investment Opportunities Fund, Pre-Seed Accelerator Fund, Supporting Promising Individuals, and Technology New Zealand). Their common factor was that each appropriation comprised grant schemes to assist individuals or organisations with their research and development aspirations.

Capital Expenditure

During the period 2004/05 to 2005/06, activity by New Zealand Venture Investment Fund Limited was funded through Vote RST. This was transferred to Vote Economic, Industry and Regional Development in November 2005. Since 2005/06, capital expenditure has involved injections into Crown Research Institutes through the Equity Investment Fund, a cash injection for the Foundation for Research, Science and Technology (FRST) for development of information and technology systems, and investment in the Measurement Standards Laboratory at Industrial Research Limited.

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 - 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.
Impact - Strategic Priority One - Simplifying the science system.
Advice on Shaping the Science System (MCOA)
  • Policy Advice
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Impact - Strategic Priority Two - Improving economic growth through research and development (R and D).
Advice on Shaping the Science System (MCOA)
  • Policy Advice
Objective - To provide scientific and technical advice.
Impact - Develop and maintain processes that provide scientific and technical advice and information, including direction setting and emerging technologies.
Advice on Shaping the Science System (MCOA)
  • Policy Advice
Objective - To provide advice on New Zealand's Research Science and Technology system.
Impact - Develop and maintain processes that provide advice and information on matters relating to research, science and technology undertaken within New Zealand.
Advice on Shaping the Science System (MCOA)
  • Policy Advice
Objective - To provide effective management of the funding provided to research, science and technology in New Zealand.
Impact - Develop and maintain processes that administer the funding provided to research, science and technology in New Zealand.
Advice on Shaping the Science System (MCOA)
  • Policy Advice
  • Contract Management
Objective - To strengthen New Zealand's international links.
Impact - Develop and maintain productive bilateral and multilateral relationships with governmental science and technology agencies in strategic priority countries.
Advice on Shaping the Science System (MCOA)
  • Policy Advice
  • Contract Management

Advice on Shaping the Science System MCOA (M56)

Scope of Appropriation

Contract Management
Negotiating, managing and monitoring contracts with the Crown's funding and investment agents and with other specific science and technology service providers.
Policy Advice
Policy advice on research, science and technology. This includes investment strategies, the performance and integration of the innovation system, scientific technical advice and ministerial services.

Explanation for Use of Multi-Class Output Expense Appropriation

Alignment of output class activity having common outcomes within one appropriation.

Expenses and Revenue

Expenses and Revenue - Advice on Shaping the Science System MCOA (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

14,566 14,066 13,791
Contract Management 1,089 1,089 1,089
Policy Advice 13,477 12,977 12,702

Revenue from Crown

14,247 14,247 13,587
Contract Management 1,089 1,089 1,089
Policy Advice 13,158 13,158 12,498

Revenue from Other

319 319 204
Contract Management - - -
Policy Advice 319 319 204

Reasons for Change in Appropriation

The movement between 2008/09 and 2009/10 reflects a reduction in funding of $775,000. This reduction arises from:

  • Third-party revenue of $80,000 that is not expected in 2009/10.
  • Departmental revenues related to the reimbursement of employer contributions to retirement saving schemes is expected to be $35,000 less in 2009/10.
  • Activity of $360,000 related to evaluation of the R and D tax credit (now discontinued) that will not occur.
  • Activity of $300,000 related to communication of the R and D tax credit to businesses that will not occur.

Output Performance Measures and Standards

Output Performance Measures and Standards - Advice on Shaping the Science System MCOA (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity      
The Ministry will report quarterly against the Forecast Statement of Service Performance for MoRST, for the periods ending 30 September, 31 December, 31 March and 30 June. N/A Reporting on six month basis Achieved
Output agreements or contracts established with each provider of research, science and technology (RST) services. Achieved Achieved Achieved
Provide ministerial support services as required, including:
  • Draft replies for letters to the Minister.
  • Responses to parliamentary questions.
  • Responses to Official Information Act.
  • Responses to information requests from the Minister.
450 - 600 items 300 Up to 400 items
(see Note 1)
Quality      
Ministerial satisfaction with the quality of analysis and advice will be gauged through regular feedback from the Minister to the Chief Executive. Achieved Achieved Achieved
Output agreements and contracts conform to the Ministry's standard for agreements, including the following:
  • Prices for each output expense are stipulated.
  • Reporting requirements are stipulated.
Achieved Achieved Achieved
Timeliness      
The Ministry will respond to 95% of performance reports provided by Funding and Investment Agents (FIAs) and other contracted providers, within the time limits specified in the output agreements and contracts. Achieved Achieved Achieved
A response to Ministerial correspondence is provided within 20 days of receipt. Achieved Achieved Achieved
All draft responses to Parliamentary Questions are provided within deadlines. Achieved Achieved Achieved
Cost Effectiveness      
The cost of MoRST's leadership in the science sector is optimal (1-3 years). MoRST costs are no more than 2.1% of total Vote RST. Achieved Achieved Achieved
Organisational      
MoRST staff through the annual Gallup survey place MoRST in the upper quartile of New Zealand public sector organisations as a great place to work. N/A Not Achieved Achieved

Note 1 - This is an estimate based on 2008/09 data. It reflects the demand made by the Minister's office for Ministry input.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Advice on Shaping the Science System MCOA (M56) - Research, Science and Technology
Reference Conditions
Ministerial Agreement to establish the multiclass output appropriation (MCOA) The existing output expense appropriations share common outcomes. The MCOA enables alignment of the output activity to outcomes within one appropriation.
  Movements between the output classes within the MCOA can increase each output class by up to 10% of the initial appropriation for the output contract management in the current financial year before requiring joint-Ministerial approval.

Quality Standards for Analysis and Advice

 
Purpose The objective of the paper is clearly stated, and it answers the questions asked by Ministers and demonstrates a clear understanding of the desired outcome(s) of the Government or the Minister.
Problem definition Any public policy problem, including the underlying causes, size and materiality of issues, is identified and supported by data or other evidence.
Context It is clear where the advice stands in the context of the wider policy process, including what has already been undertaken and what is expected to occur in the future.
Logic An appropriate analytical framework is used. Assumptions behind the advice are explicit and the argument is logical and supported by facts.
Accuracy All material facts are present and accurate. Known gaps that could significantly affect the conclusions are identified and the range of uncertainty stated. Forecasts are credible at the time they are produced and take into account all relevant information.
Options A range of options is presented that provides clearly differentiated choices and these are rigorously evaluated against the analytical framework. Costs, benefits, consequences and risks/opportunities of the options are assessed as part of the analysis. Where it is not appropriate to use a range of options the reasons are clearly stated.
Funding The paper accurately and comprehensively describes the funding implications for the government of the proposals put forward.
Recommendations Recommendations are clear, logical and action oriented and can stand alone from the rest of the advice. They are sufficient to enable a decision to be made on the proposal or to move to the next decision/action point.
Consultation Evidence of thorough and timely consultation with other government departments and interested parties is presented, and their views, including objections, incorporated as appropriate.
Practicality Issues of implementation, technical feasibility, practicality and timing are considered and advice accurately identifies compliance, transitional, political, legislative, revenue, expense and administrative implications and costs (quantified where possible).
Communication Guidance is provided on how communications arising from decisions on the advice should be handled, including an assessment of key stakeholders who should be informed and how.
Presentation Material is presented to suit the target audience and:
  • is concise and structured in a way which assists others to understand the aim of the advice, key features of the information, analysis and recommendations, and their key implications
  • uses appropriate language and style
  • uses empirical evidence
  • avoids cliches and technical jargon (or where the latter is not possible, it is used appropriately for a general audience), and
  • is consistent with Ministry and Cabinet Office presentation requirements.

 

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Advice on Shaping the Science System MCOA (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Policy Advice as at Budget 2004 2004/05 11,826 11,826 11,826 11,826 11,826
Contract Management as at Budget 2004 2004/05 509 509 509 509 509
Reimbursement of employer contributions to State Sector Retirement Savings Scheme (SSRSS) 2004/05 OBU 2004/05 160 160 160 160 160
Policy Advice Budget 2005 Transfer for Biotechnology Futurewatch activity in MoRST 2005/06 125 125 125 125 125
GST on baselines as at Budget 2005 - Policy Advice 2005/06 (1,403) (1,403) (1,403) (1,403) (1,403)
GST on initiatives as at Budget 2005 - Policy Advice 2005/06 (121) (121) (121) (121) (121)
GST on baselines as at Budget 2005 - Contract Management 2005/06 (64) (64) (64) (64) (64)
GST on initiatives as at Budget 2005 - Contract Management 2005/06 (16) (16) (16) (16) (16)
Policy Advice Budget 2005 Funding of science counsellor in North Asia 2005/06 731 731 731 731 731
Policy Advice Budget 2005 Capability consequences arising from the transfer of GIAB to the Ministry of Economic Development 2005/06 232 232 232 232 232
Increase in employer contributions to SSRSS 2005/06 OBU 2005/06 62 62 62 62 62
Policy Advice 2005/06 MBU Contract Management realignment 2005/06 (446) (446) (446) (446) (446)
Contract Management 2005/06 MBU realignment 2005/06 446 446 446 446 446
Contract Management Budget 2005 Supporting growth in CRIs 2005/06 150 150 150 150 150
MCOA Policy Advice Budget 2006 Transfer for Counsellors 2006/07 258 258 258 258 258
MCOA Policy Advice Budget 2007 Tax on Overseas Conditions of Service - provision to be reviewed annually at each MBU 2007/08 260 260 260 260 260
MCOA Policy Advice Budget 2007 Evaluation for R and D Tax credit 2007/08 390 180 250 250 250
MCOA Policy Advice MBU 2007/08 Adjustment for employer superannuation contributions to SSRSS and Kiwisaver 2007/08 35 - - - -
MCOA Policy Advice Budget 2008 Futurewatch transfer 2007/08 75 75 75 75 75
MCOA Policy Advice Budget 2008 MoRST capability 2008/09 300 300 300 300 300
MCOA Policy Advice PREFU 2008/09 Income on use of AV equipment 2008/09 80 - - - -
MCOA Policy Advice PREFU 2008/09 Communication of the R and D tax credit 2008/09 300 - - - -
MCOA Policy Advice MBU 2008/09 Tax on overseas allowances and entitlements 2008/09 (30) - - - -
MCOA Policy Advice Budget 2009 Discontinuation of R and D tax credit evaluation 2009/10 - (180) (250) (250) (250)

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 - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Funding for agencies on a contestable basis to undertake policy and other operational research outside core business, and with cross-agency benefits.
Impact - Policy and operational research informs Government's decision making.
Cross Agency Research
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - New Zealanders' awareness of the importance and value of science and technology to themselves and New Zealand is enhanced.
Impact - New Zealanders receive information about the importance and value of science and technology.
Engaging New Zealanders with Science and Technology
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Public good research, science and technology enhances the understanding and management of our environment.
Impact - Improved understanding of the environment and knowledge to underpin the management, protection and enhancement of natural ecosystems, plus knowledge of the sustainable use of ecosystems, including the productive sector's environment.
Environmental Research
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - New Zealand firms have improved technological capability and international connectedness.
Impacts -
  • To facilitate domestic and international knowledge and technology transfer.
  • To lift the quality and quantity of private sector research and development.
  • To increase connections and collaborations between businesses and domestic and international knowledge institutions.
Global Technology Partnerships
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Public good research, science and technology contributes to improvement in the health status of New Zealanders.
Impacts -
  • To support research that provides knowledge and understanding of the factors influencing health status, including health disparities between New Zealanders.
  • To support research that provides health technologies.
Health Research
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - The New Zealand innovation sector's global connectivity is enhanced.
Impacts -
  • To support access to and utilise the best global ideas.
  • To encourage New Zealand researchers to use international research, science and technology linkages to enhance our knowledge base and innovative capacity.
International Science and Technology Linkages
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Research capacity and capability is developed across the themes of the "Vision Matauranga" framework.
Impacts -
  • Indigenous innovation - to contribute to economic growth through distinctive research and development.
  • Taiao - to achieve environmental sustainability through Iwi and Hapu relationships with land and sea.
  • Hauora/Oranga - to improve Maori health and social wellbeing.
  • Matauranga - to explore the interface between indigenous knowledge and RST.
Maori Knowledge and Development Research
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Excellence is achieved in the advancement of knowledge, the knowledge base is expanded, and people with knowledge, skills and ideas are supported.
Impact - Profound or unexpected discoveries, or the catalysis of significant developments in previously unrelated and strategically important fields of knowledge.
Marsden Fund
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - The Minister's obligations under the Measurement Standards Act 1992 are satisfied.
National Measurement Standards
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Researcher-led innovation develops capability and knowledge in new areas, or applications where industries are emerging or yet to emerge.
Impact - To underpin new or emerging knowledge-based enterprises in New Zealand through:
  • Supporting investigator-initiated basic research that has the potential to create the advanced technological platforms that will underpin new and emerging industries.
  • Building a critical mass of research capability and new knowledge in emerging science and technology areas.
  • Developing advanced human capital and skills that draw from rapidly advancing international science and technology.
  • Developing new areas of knowledge to a point where they may be further developed, sustained and/or exploited through other public or private investments.
New Economy Research Fund
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Commercialisation of R and D is accelerated and linkages between firms and research organisations are stronger.
Research and Development Facilitation and Promotion Service
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Non-departmental output expenses and other expenses are invested effectively and efficiently.
Research Contract Management
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - The competitiveness of New Zealand industries and sectors is increased through strategic research.
Impacts -
  • To advance food and fibre-based industries and related sectors through innovation.
  • To advance manufacturing and service industries and sectors through innovation.
  • To develop infrastructure to underpin economic development.
  • To facilitate public/private research partnerships that provide early user engagement and increase private investment in New Zealand.
Research for Industry
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Public good research, science and technology improves social wellbeing and cohesion and economic wealth.
Impact - To improve New Zealanders' quality of life for individuals, families and communities, foster social cohesion, sustain culture and identity, and improve economic performance.
Social Research
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Private and public organisations are able to demonstrate the potential of new sustainable low carbon energy technologies.
Impact - Understanding of new sustainable low carbon energy technologies.
Sustainable Energy Development

Cross Agency Research (M56)#

Scope of Appropriation

Policy and operational research from agencies that contribute to the achievement of government priorities.

Expenses

Expenses - Cross Agency Research (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 2,254

Reasons for Change in Appropriation

Cross Agency Research is a new appropriation for 2009/10. In previous years cross-agency research activity has been included in departmental baselines. In 2008/09 $4.347 million has been appropriated for cross-agency research activity across seven votes.

Output Performance Measures and Standards

Output Performance Measures and Standards - Cross Agency Research (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number and total dollar value of new and active contracts will be reported in six-monthly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement or Terms of Reference. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A N/A Achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Cross Agency Research (M56) - Research, Science and Technology
Reference Conditions
Terms of Reference dated 22 February 2008
  • To fund high quality cross-agencies research, which will support the advancement of Government's strategic policy priorities.
  • To catalyse new relationships and capabilities within and between departments so that over time departments take responsibility for investment in long term high quality research.
  • To develop a portfolio of research activity divided between smaller, short term projects to catalyse new relationships and capabilities, and multi-year large scale projects to provide key building blocks for Government's decision making.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Cross Agency Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Budget 2009 Cross Agency Research 2009/10 - 2,254 4,118 4,347 4,347

Engaging New Zealanders with Science and Technology (M56)#

Scope of Appropriation#

This appropriation is limited to supporting activities that engage with New Zealanders about the role of RS&T in supporting innovation, as determined by the Minister.

Expenses#

Expenses - Engaging New Zealanders with Science and Technology (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,448 6,298 7,071

Reasons for Change in Appropriation#

This appropriation will increase by $623,000 to $7.071 million for 2009/10. The reason for the change is additional funding of $1 million for the Prime Minister's Prizes for Science, less a transfer of $377,000 for the Science Learning Hub and Smash Palace initiatives made in the previous year.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Engaging New Zealanders with Science and Technology (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

New Zealand Science Journals

     
Eight journals will be published in electronic and/or paper format with a maximum of four issues per journal. N/A Achieved Achieved
The average turnaround time from submission to publication will be 45 weeks or less. N/A Achieved Achieved
Accepted papers will be published within 24 weeks of acceptance subject to available journal space. N/A Achieved Achieved

Alpha and Gamma Series

     
Between four and six Alpha and Gamma publications will be produced each year. N/A Achieved Achieved

Promoting awareness of RST

     
Present the New Zealand Science and Technology Medals as specified in the contract. N/A Achieved Achieved
Manage a national promotional programme as specified in the contract. N/A Achieved Achieved
Support talented science and technology school students as specified in the contract. N/A Achieved Achieved
Develop new promotional activities as specified in the contact. N/A Achieved Achieved

Engaging New Zealanders on Biotechnology

     
New Zealand schools are using Biotechnology information on the Biotechnology Learning Hub as specified in the contract. N/A Achieved Achieved
Develop a programme to give rural New Zealanders an awareness of the role of biotechnology research on food as specified in the contact. N/A Achieved Achieved

Linking school students with RST research

     
Provision of data for performance measurement framework supplied to MoRST by 30 September 2010 and in alignment with content guidelines specified in the relevant agreement. N/A Achieved Achieved

Support for Smash Palace

     
Four projects to build links between scientists and artists are supported. N/A Project activity commences by 30 June 2008 Achieved

The Science and Technology Media Centre

     
A media centre that strengthens linkages between the media and the RST sector is maintained as per contract. N/A Achieved Achieved

The Prime Minister's Prizes for Science

     
Prizes will be awarded each year by 30 June. N/A N/A Achieved

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 RST, through linking schools with research organisations and working with sector organisations to enhance their communications focus and activities.

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004 2004/05 3,992 3,992 3,992 3,992 3,992
Biotechnology Futurewatch Initiative (as at 2005 Budget (BEFU)) ex Sci Promotions MoRST 2005/06 (125) (125) (125) (125) (125)
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (444) (444) (444) (444) (444)
GST on Budget Initiatives (as at 2005 Budget (BEFU) 2005/06 14 14 14 14 14
RSNZ - Administration expenses and publication costs (as at 2006 Budget (BEFU)) 2006/07 155 155 155 155 155
Linking schools and research organisations - pilot (as at 2006 Budget (BEFU)) 2006/07 1,000 1,000 1,000 1,000 1,000
Reschedule Carter funding 2006/07 MBU 2006/07 (271) (271) (271) (271) (271)
Budget 2008 science learning hub and media centre 2008/09 1,825 1,825 1,825 1,825 1,825
Budget 2008 transfer of Futurewatch to MoRST 2007/08 (75) (75) (75) (75) (75)
Reschedule funding for science learning hub and smash palace 2008/09 OBU 2008/09 377 - - - -
Budget 2009 Prime Minister's Prizes for Science 2009/10 - 1,000 1,000 1,000 1,000

Environmental Research (M56)#

Scope of Appropriation#

This appropriation is limited to obtaining public good science and technology that enhances the understanding and management of our environment.

Expenses#

Expenses - Environmental Research (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 100,014 100,014 102,569

Reasons for Change in Appropriation#

This appropriation will increase by $2.555 million to $102.569 million for 2009/10. The reasons for the change are:

  • a funding restructure and transfer of the undistributed funds held by the FRST, and
  • reversal of the unfunded Budget 2008 commitment.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Environmental Research (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved

Envirolink

     
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved
100% of information will be reported as per the Information Sharing Agreement between MoRST and the Foundation. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Environmental Research (M56) - Research, Science and Technology
Reference Conditions
Statement of Science Priorities - September 2008 Priorities to which FRST must adhere to in allocating funds are:
  • Government's priorities for New Zealand's research, science and technology activity
  • The annual Estimates of Appropriations for Vote RST
  • The Minister of RST's Letter of Expectations to FRST
  • The output agreement between FRST and the Minister of RST
  • Current Roadmaps for Science (which currently includes those for Environmental Research, Biotechnology Research, Nanoscience, and Nanotechnologies and Energy Research)
  • The funds appropriated for the Sustainable Land Management and Climate Change Plan of Action, as set out in the annual Estimates of Appropriation for Vote Agriculture and Forestry, and the Strategic Research Framework developed for those funds, and
  • Any other priority setting documents that the Minister of RST may issue from time to time.
FRST shall confer with MoRST to ensure that FRST's allocation strategies, and the associated investment signals to the research sector, contribute to the Government's objectives and the needs of the end-users of research and research organisations.
The Minister of RST expects FRST to seek guidance on matters including, but not limited to:
  • Research organisations' strategies
  • Whole-of-government and government departments' strategies, and
  • End-user and other private sector strategies.
Ministerial Direction - Stable Funding July 2008 The Foundation in its allocation of funds will ensure:
there will be progressive implementation of the Negotiated Investment Process for eligible programmes within Vote RST
to be considered eligible for a Negotiated Investment Process, a research programme will have to:
  • be of sufficient size
  • demonstrate strategic relevance to government and/or sector goals
  • have undergone a technical review that demonstrates satisfactory performance, and
  • have previously received funding from the Foundation.
that research programmes eligible for the Negotiated Investment Process also satisfy quality and relevance criteria that include, but are not limited to, a combination of the following:
  • scientific and technical quality, including track-record of delivering benefit to New Zealand; and future potential to deliver benefit to New Zealand
  • long-term comparative advantage in an area of direct benefit to New Zealand, or unique significance to New Zealand
  • alignment with relevant end-user and government strategies
  • evidence of end-user support and industry co-funding, and
  • a track record of the research organisations' accountability for public money.
that Negotiated Investment Processes will be applied in the Environmental Research output expense with the total value of Negotiated Investment Process investments not to exceed 40% in each of this output expense.
Outcome-based Investment and funds to which a ministerial scheme applies do not count toward the calculation of the percentage cap within the Environmental Research output expenses, but do form part of the total relevant output expense.
Ministerial Direction - Envirolink- November 2005 The scheme will be administered by FRST.
Envirolink is available to support two areas of environmental management:
  • Advice.
  • Tools.
Advice:
FRST will allocate funds to those proposals that, in its view, meet the following criteria:
  • Small advice grant (up to $5,000 per grant): An initial expert consultation available to the trial regional councils to access existing expertise and knowledge to identify a council's information needs, science techniques and/or any training requirements for these techniques.
  • Medium advice grant (up to $20,000 per grant): A detailed expert consultation available to the trial regional councils, for discrete projects or as a second phase of an initial small grant project, to apply existing knowledge held by scientists to environmental issues in a region.
Tools:
  • Available to all regional councils to develop or adapt existing resource management tools for use by all regional councils. All regional councils must agree a prioritised list of resource management tools to be funded each year.
  • FRST may delegate authority to CRIs, research associations and universities to be its approved agents for advice grants in respect of the scheme.
  • FRST may delegate authority to regional councils to be its approved agents in respect of the scheme only with prior ministerial approval.
  • Further instructions and requirements of applicants will be communicated by FRST, including on its web site.
  • Funds not allocated by FRST in any financial year will be rephased to the ensuing financial year and used only for the Scheme.
  • Should the funds be fully allocated by FRST prior to the close of any financial year, FRST will notify regional councils, CRIs, universities, research associations and MoRST that no more proposals may be received in that financial year.
In administering the Scheme, FRST will:
  • Ensure the trial regional councils are actively participating in obtaining advice grants by initiating projects.
  • Ensure the process is flexible and responsive to regional councils' needs.
Ministerial Direction -
Climate Change Adaptation Research Scheme - December 2007
The Scheme will fund:
  • climate modelling research required to understand how New Zealand can mitigate or adapt to the impacts of climate change, and
  • capability building within the science sector in order to undertake and apply that research.
These activities should be undertaken via a multidisciplinary, collaborative or cross-research organisation approach.
The Scheme's objectives are to:
  • protect our primary and resource intensive industries
  • respond to new human and animal health threats
  • maintain and enhance our biodiversity, and
  • develop communities resilient to changes in the climate and associated hazards.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Environmental Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004 2004/05 93,629 93,629 93,629 93,629 93,629
Marine Science and Information - use of MV Taharoa (as at 2005 Budget (BEFU)) 2005/06 1,545 1,545 1,545 1,545 1,545
Envirolink-connecting science with management for environmental benefit (as at 2005 Budget (BEFU)) 2005/06 1,800 1,800 1,800 1,800 1,800
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (10,403) (10,403) (10,403) (10,403) (10,403)
GST on Budget Initiatives (as at 2005 Budget (BEFU)) (1545 and 2000) 2005/06 (372) (372) (372) (372) (372)
Increasing environmental research (as at 2006 Budget (BEFU)) NZ Ecosystems 2006/07 3,900 3,900 3,900 3,900 3,900
Budget 2007 International Polar Year 2007/08 1,350 1,350 - - -
Budget 2007 Climate change research 2007/08 2,000 2,000 2,000 2,000 2,000
OBU 2007/08 Climate change adaption research 2007/08 2,500 2,500 2,500 2,500 2,500
MBU 2007/08 Restructure of funding for climate change adaption 2007/08 834 833 833 - -
MBU 2007/08 rephase funding to 2008/09 2007/08 1,778 - - - -
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
Budget 2008 Backbone 2008/09 2,564 4,564 4,564 4,564 4,564
Budget 2008 Outcome Based Investments 2008/09 2,000 4,500 4,500 4,500 4,500
MBU 2008/09 rephasing of the undistributed funds held by FRST 2008/09 (6,111) 6,111 - - -
Budget 2009 reversal of the unfunded Budget 2008 commitment 2009/10 - (13,888) (6,000) (6,000) (6,000)

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 401 401 400

Reasons for Change in Appropriation#

This appropriation will decrease by $1,000 for 2009/10. The reason for the change is a planned reduction in the level of annual funding for this service provided by the FRST.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Global Technology Partnership (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The cost of the Global Technology Partnerships service is reported quarterly.
The cost of this service should reflect the direct processing time and cost, and the equitable distribution of all indirect costs.
Achieved Achieved Achieved
Number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Establish the programme Budget 2006 2006/07 1,403 1,361 1,361 1,361 1,361
Adjustment to administrative arrangements OBU 2006/07 2006/07 (1,002) (1,361) (1,361) (1,361) (1,361)
2008 OBU Continuation of support 2009/10 - 400 400 - -

Health Research (M56)#

Scope of Appropriation#

This appropriation is limited to obtaining public good science and technology that improves the health status of New Zealanders.

Expenses#

Expenses - Health Research (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 62,955 62,955 70,955

Reasons for Change in Appropriation#

This appropriation will increase by $8 million to $70.955 million for 2009/10. The reason for the change is an increase for general contestable funding.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Health Research (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number and total dollar value of new and active contracts reported in six monthly reports. N/A Achieved Achieved
100% of contracts are awarded in line with the process and criteria set out for each output in the contract between the Minister of RST and the Health Research Council (HRC). N/A Achieved Achieved
Provision of data for RST Scorecard supplied to MoRST by 30 September 2010 and in alignment with content guidelines specified in the Output Agreement. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Health Research (M56) - Research, Science and Technology
Reference Conditions
Estimates of Appropriation 2007 Criteria for the purchase of outputs will be:
  • Scientific and technological quality.
  • Relevance to improving health and social wellbeing.
This output expense has three outputs:
  • Contestable Funding Round: strategic, investigator-led research that contributes to the social, economic and knowledge goals for Vote RST.
  • Partnership Programme: research with a focus on building the evidence base for public sector policy and practice relevant to health outcomes.
  • Targeted Research for Health: targeted research addressing identified national health priorities.
Health Research Council Act 1990 Administer funds granted to the Council for the purpose of implementing national health research policy.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Health Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004 2004/05 47,734 47,734 47,734 47,734 47,734
Increase investment in health research (as at 2005 Budget (BEFU)) to HRC 2005/06 18,590 18,590 18,590 18,590 18,590
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (5,304) (5,304) (5,304) (5,304) (5,304)
GST on Budget Initiatives (as at 2005 Budget (BEFU)) 2005/06 (2,065) (2,065) (2,065) (2,065) (2,065)
Budget 2008 Increase investment in health research (HRC Contestable Fund) 2008/09 3,000 3,000 3,000 3,000 3,000
Budget 2008 Obesity Research (to have matched funds through Vote Health) 2008/09 1,000 1,000 1,000 1,000 1,000
Budget 2009 Increase investment in health research (HRC Contestable Fund) 2009/10 - 8,000 8,000 8,000 8,000

International Science and Technology Linkages (M56)#

Scope of Appropriation#

This appropriation is limited to promoting and supporting New Zealand RS&T internationally as determined by the Minister.

Expenses#

Expenses - International Science and Technology Linkages (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,767 3,267 3,227

Reasons for Change in Appropriation#

This appropriation will decrease by $540,000 to $3.227 million for 2009/10. The reason for the change reflects the transfer of funding made from 2007/08 in respect of bilateral activity involving the European Union, India, Singapore and Japan.

Output Performance Measures and Standards#

Output Performance Measures and Standards - International Science and Technology Linkages (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number and total dollar value of new and active contracts will be reported in quarterly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Terms of Reference. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - International Science and Technology Linkages (M56) - Research, Science and Technology
Reference Conditions
International Science and Technology Linkages (ISAT) Terms of Reference All programmes will be targeted to supporting all, or some of the following fundamental objectives of the ISAT Output Class:
  • To develop international opportunities and utilise overseas advances in RST for economic, social and environmental progress.
  • To positively influence regional or international RST-linked activities that advance New Zealand's national interests.
  • To increase the level of funding, scientific skills and technological capabilities that New Zealand is able to source from other countries.
  • To promote international recognition for New Zealand as a centre for innovation.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - International Science and Technology Linkages (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at 2004 Budget 2004/05 2,335 2,335 2,335 2,335 2,335
Transfer of management costs for ISAT programmes administered by the Royal Society of NZ (RSNZ) to Research Contract Management NDE (as at 2004/05 OBU (DEFU)) 2004/05 (50) (50) (50) (50) (50)
Increased access to global science (as at 2006 Budget (BEFU)) 2006/07 500 500 500 500 500
Transfer to MoRST for Counsellor Activity (as at 2006 Budget (BEFU)) 2006/07 (258) (258) (258) (258) (258)
Budget 2007 Connecting NZ Science Globally 2007/08 700 700 700 700 700
MBU 2007/08 transfer of funding to 2008/09 for bilateral activity with the European Union 2007/08 150 - - - -
OBU 2008/09 transfer of funding to 2008/09 for bilateral activity with India, Singapore and Japan. 2008/09 390 - - - -

Maori Knowledge and Development Research (M56)#

Scope of Appropriation#

This appropriation is limited to obtaining public good science and technology that unlocks the innovation potential of Maori knowledge.

Expenses#

Expenses - Maori Knowledge and Development Research (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,867 4,867 4,867

Reasons for Change in Appropriation#

This appropriation has not changed.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Maori Knowledge and Development Research (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Maori Knowledge and Development Research (M56) - Research, Science and Technology
Reference Conditions
Statement of Science Priorities - September 2008 Priorities to which the foundation must adhere to in allocating funds are:
  • the annual Estimates of Appropriations for Vote RST
  • the Minister of RST's Letter of Expectations to FRST
  • the output agreement between FRST and the Minister of RST
  • current Roadmaps for Science (which currently includes those for Environmental Research, Biotechnology Research, Nanoscience, and Nanotechnologies and Energy Research)
  • the funds appropriated for the Sustainable Land Management and Climate Change Plan of Action, as set out in the annual Estimates of Appropriation for Vote Agriculture and Forestry, and the Strategic Research Framework developed for those funds, and
  • any other priority setting documents that the Minister of RST may issue from time to time.
FRST shall confer with MoRST to ensure that FRST's allocation strategies, and the associated investment signals to the research sector, contribute to the government's objectives and the needs of the end-users of research and research organisations.
The Minister of RST expects FRST to seek guidance on matters including, but not limited to:
  • research organisations' strategies
  • whole-of-government and government departments' strategies, and
  • end-user and other private sector strategies.
Vision Matauranga 2007 The purpose of Vision Matauranga is to provide strategic direction for Vote RST funding for research of relevance to four themes. These themes will find expression, where appropriate, in research investments made by FRST, HRC and RSNZ. The four themes are:
  • Economic. Indigenous innovation: contributing to economic growth through distinctive R and D.
  • Environment. Taiao: achieving environmental sustainability through iwi and hapu relationships with land and sea.
  • Social. Hauora: improving Maori health and social wellbeing.
  • Knowledge. Matauranga: exploring indigenous knowledge and RST.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Maori Knowledge and Development Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004 2004/05 5,475 5,475 5,475 5,475 5,475
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (608) (608) (608) (608) (608)

Marsden Fund (M56)#

Scope of Appropriation#

This appropriation is limited to obtaining excellent basic research that broadens and deepens the research skill base in New Zealand, regardless of whether the research contributes to the Government's socio-economic priorities.

Expenses#

Expenses - Marsden Fund (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 37,878 37,878 46,878

Reasons for Change in Appropriation#

This appropriation will increase by $9 million to $46.878 million for 2009/10. The reason for the change is additional funding for basic research for 2009/10 and through outyears.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Marsden Fund (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number and total dollar value of existing contracts reported in six monthly reports. N/A Achieved Achieved
100% of contracts will be awarded on the basis of research excellence. N/A Achieved Achieved
Provision of data for RST Scorecard supplied to MoRST by 30 September 2010 and in alignment with content guidelines specified in the contract between the Minister of RST and the Royal Society of NZ (RSNZ). N/A Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004 2004/05 35,289 35,289 35,289 35,289 35,289
Increased funding for the Marsden Fund (as at 2005 Budget (BEFU)) 2005/06 2,880 2,880 2,880 2,880 2,880
GST on Baselines - Non-Departmental Output Classes (as at 2005 Budget (BEFU)) 2005/06 (3,921) (3,921) (3,921) (3,921) (3,921)
GST on Budget Initiatives (as at 2005 Budget (BEFU)) 2005/06 (320) (320) (320) (320) (320)
Administration cost of the Marsden Fund (social sciences panel) transferred to the Research Contract Management NDE (as at 2005/06 MBU) 2005/06 (50) (50) (50) (50) (50)
Budget 2007 Increased funding 2007/08 2,000 2,000 2,000 2,000 2,000
Budget 2008 Increased funding 2008/09 2,000 2,000 3,000 6,000 6,000
Budget 2009 Reversal of unfunded Budget 2008 commitment 2009/10 - - (1,000) (4,000) (4,000)
Budget 2009 Increased funding 2009/10 - 9,000 9,000 9,000 9,000

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
  2008/09 2009/10
  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
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Provision of national measurement standards and related services in accordance with the requirements specified in the contract with the Minister. N/A Achieved Achieved
The measurement standards will be maintained in accordance with the resolutions and recommendations of the Metric Treaty Organisation with all technical procedures related to the measurement standards validated. N/A Achieved Achieved
100% of outputs delivered in accordance with time lines specified in the output agreement with the Minister. N/A Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004 2004/05 5,517 5,517 5,517 5,517 5,517
GST on Baselines - Non-Departmental Output Classes (as at 2005 Budget (BEFU)) 2005/06 (613) (613) (613) (613) (613)
Extending Measurements Standards (operating) (as at 2006 Budget (BEFU)) 2006/07 860 860 860 860 860

New Economy Research Fund (M56)#

Scope of Appropriation#

This appropriation is limited to obtaining investigator-initiated research that stimulates the emergence and growth of new knowledge-intensive enterprises.

Expenses#

Expenses - New Economy Research Fund (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 69,833 69,833 73,019

Reasons for Change in Appropriation#

This appropriation will increase by $3.186 million to $73.019 million for 2009/10. The reasons for the change are:

  • a funding restructure and transfer of the undistributed funds held by the FRST, and
  • reversal of the unfunded Budget 2008 commitment.

Output Performance Measures and Standards#

Output Performance Measures and Standards - New Economy Research Fund (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - New Economy Research Fund (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction - Stable Funding July 2008 The Foundation in its allocation of funds will ensure:
there will be progressive implementation of the Negotiated Investment Process for eligible programmes within Vote RST
to be considered eligible for a Negotiated Investment Process, a research programme will have to:
  • be of sufficient size
  • demonstrate strategic relevance to government and/or sector goals
  • have undergone a technical review that demonstrates satisfactory performance, and
  • have previously received funding from the Foundation.
that research programmes eligible for the Negotiated Investment Process also satisfy quality and relevance criteria that include, but are not limited to, a combination of the following:
  • scientific and technical quality, including track-record of delivering benefit to New Zealand and future potential to deliver benefit to New Zealand
  • long-term comparative advantage in an area of direct benefit to New Zealand, or unique significance to New Zealand
  • alignment with relevant end-user and government strategies
  • evidence of end-user support and industry co-funding, and
  • a track record of the research organisations' accountability for public money.
that Negotiated Investment Processes will be applied in the New Economy Fund output expense with the total value of Negotiated Investment Process investments not to exceed 30% of this output expense.
Ministerial Direction - November 2008 The objectives of the New Economy Research Fund are to:
  • support investigator-initiated research (public or private) that has the potential to create advanced technologies
  • utilise advanced technologies (New Zealand and international) to estimate the emergence and growth of new knowledge-intensive enterprises for the benefit of New Zealand
  • develop advanced human capital and skills in New Zealand, and
  • in the case of TRSTS, utilise advanced technologies (New Zealand and international) to stimulate the emergence and growth of new knowledge-intensive enterprises more rapidly than may otherwise have occurred.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - New Economy Research Fund (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004 2004/05 69,284 69,284 69,284 69,284 69,284
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (7,698) (7,698) (7,698) (7,698) (7,698)
Supporting existing infrastructure - Synchrotron (as at 2006 Budget (BEFU)) 2006/07 (808) (644) (644) (644) (644)
Transfer for Synchrotron OBU 2006/07 2006/07 - - (377) (377) -
Budget 2007 New Technologies 2007/08 3,500 3,500 3,500 3,500 3,500
Budget 2007 Innovative Foods 2007/08 1,155 1,155 1,155 1,155 1,155
Rollover reversal one off adjustment OBU 2007/08 2007/08 - - - 377 -
MBU 2007/08 rephase funding to 2008/09 2007/08 1,600 - - - -
Emerging and high value technologies Budget 2008 2008/09 3,000 3,000 3,000 3,000 3,000
High technology platforms TRST Budget 2008 2008/09 3,000 3,000 8,000 10,000 10,000
OBU 2008 Reinstatement of funding after one-off transfer to Australian Synchrotron 2010/11 - - 644 644 644
MBU 2008/09 restructure of undistributed funds held by FRST 2008/09 (3,200) 3,200 - - -
Budget 2009 reversal of the unfunded Budget 2008 commitment 2009/10 - (1,778) (5,000) (7,000) (7,000)

Research and Development Facilitation and Promotion Service (M56)#

Scope of Appropriation#

This appropriation is limited to purchasing services that promote the commercialisation of research and development, and facilitate linkages between firms and research organisations.

Expenses#

Expenses - Research and Development Facilitation and Promotion Service (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,000 4,000 5,000

Reasons for Change in Appropriation#

This appropriation will increase by $1 million to $5 million for 2009/10. The reason for the change is the reduction in services and transfer of $1 million in 2008/09 for capital investment in the FRST in 2009/10.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Research and Development Facilitation and Promotion Service (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Provide a quarterly report 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. N/A Achieved Achieved
The cost of the R and D Facilitation and Promotion Service is reported quarterly.
The cost of this service should reflect the direct processing time and cost, and the equitable distribution of all indirect costs.
N/A Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Budget 2007 Establish the service activity 2007/08 2,000 2,000 2,000 2,000 2,000
Budget 2008 Increased funding for the service 2008/09 3,000 3,000 3,000 3,000 3,000
Budget 2009 transfer to provide for capital injection to FRST 2008/09 (1,000) - - - -

Research Contract Management (M56)#

Scope of Appropriation#

This appropriation is limited to purchasing services that select RS&T related organisations and individuals for either the provision of RS&T 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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 22,456 22,431 21,834

Reasons for Change in Appropriation#

This appropriation will decrease by $622,000 to $21.834 million for 2009/10. The reasons for the change are:

  • $800,000 in 2008/09 only for FRST to further implement technical review and stable funding.
  • An increase of $178,000 from 2009/10 for administration of Technology New Zealand grant schemes that was approved in the 2005 Budget.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Research Contract Management (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Achievement reports from research providers are produced in accordance with timelines and content guidelines specified in contracts between the FIA and providers. N/A Achieved Achieved
Contracts are monitored on the achievement of their performance objectives as specified in contracts between the Minister of RST and FIAs. N/A Achieved Achieved
100% or contracts are awarded in accordance with assessment processes outlined in annually updated documents. N/A Achieved Achieved
100% of research contract payments are made at the agreed sum to the correct providers and no payments are made in excess of the agreed sums. N/A Achieved Achieved
100% of contracts, where appropriate, require research providers to obtain ethical approvals, and satisfy government regulatory requirements before the research can be undertaken. N/A Achieved Achieved
FIAs deliver 100% of key accountability reports in accordance with timelines specified in their contracts with the Minister. N/A Achieved Achieved
All 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. N/A Achieved Achieved
Investment efficiency ($ contract management budget/$ investment funds disbursed) will be reported in the 4th quarter or 2nd six-monthly reports for 2009/010. N/A Achieved Achieved
Contracts ($ contract management budget/no. of contracts let) will be reported in the 4th quarter or 2nd six-monthly reports for 2009/010. N/A Achieved Achieved
At least 85% of biennially surveyed participants indicate satisfaction with the standard of delivery within the Technology New Zealand Schemes. N/A Achieved Achieved
Processing time split (Date of application/date of contracting) to be relevant output expenses (defined in the output agreement) reported as specified in the contracts between the Minister of RST and FIAs. N/A Achieved Achieved
The cost of research contract management (RCM) is reported for each funding scheme being administered under agreed outputs in the output agreement or service contract with the FIA.
The cost of RCM should reflect the direct processing time and cost, and the equitable distribution of all indirect costs.
Achieved Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004 2004/05 19,317 19,317 19,317 19,317 19,317
Transfer for admin cost of TBG programme (as at 2004/05 OBU (DEFU)) 2004/05 225 225 225 225 225
Transfer of management costs for RSNZ ISAT programmes (as at 2004/05 OBU (DEFU)) 2004/05 50 50 50 50 50
Envirolink-connecting science with management for environmental benefit (as at 2005 Budget (BEFU)) 2006/07 200 200 200 200 200
RCM for HRC for increased investment in Health Research (as at 2005 Budget (BEFU)) 2005/06 410 410 410 410 410
Support for business R and D - the expansion of Technology New Zealand (as at 2005 Budget (BEFU)) 2005/06 480 600 600 600 600
Expanding the Technology for Industry Fellowships (TIF) Scheme (as at 2005 Budget (BEFU)) 2005/06 400 400 400 400 400
Industry Based Research Funding for Increasing the number of Research Consortia (as at 2005 Budget (BEFU)) 2005/06 200 200 200 200 200
Expansion of the International Investment Opportunities Fund (as at 2005 Budget (BEFU)) 2005/06 200 200 200 200 200
Transfer to MoRST for management of the CRI Capability Fund (as at 2005 Budget (BEFU)) 2005/06 (150) (150) (150) (150) (150)
RCM for RSNZ for increased funding for the Marsden Fund (as at 2005 Budget (BEFU)) RSNZ 2005/06 120 120 120 120 120
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (2,177) (2,177) (2,177) (2,177) (2,177)
GST on Budget Initiatives (as at 2005 Budget (BEFU)) 2005/06 (207) (220) (220) (220) (220)
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 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
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
RCM for RSNZ for administration of the Marsden Fund (social sciences panel) (as at 2005/06 MBU) 2005/06 50 50 50 50 50
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 related to the International Polar Year Contestable research fund as at 2007 Budget BEFU 2007/08 150 150 150 150 150
Technical review of investments as at 2007 Budget BEFU 2007/08 300 300 300 300 300
RCM for RSNZ for increased cost of administration for Teacher Fellowships MBU 2007/08 2007/08 130 130 130 130 130
Budget 2008 increase for technical review and the implementation of the second phase of the stable funding initiative 2008/09 800 - - - -
OBU 2008 increase in RCM for FRST 2008/09 300 300 300 300 300

Research for Industry (M56)#

Scope of Appropriation#

This appropriation is limited to obtaining public good science and technology that improves the competitiveness of the industrial sector.

Expenses#

Expenses - Research for Industry (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 206,040 206,040 214,263

Reasons for Change in Appropriation#

This appropriation will increase by $8.223 million to $214.263 million for 2009/10. The reasons for the change are:

  • a funding restructure and transfer of the undistributed funds held by the FRST, and
  • reversal of the unfunded Budget 2008 commitment.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Research for Industry (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved
At least 50% of contracts reporting co-funding greater than 5% of each contract's value. N/A Achieved Achieved
Research Consortia is used to leverage private sector investment:
  • At least 50% planned cash co-funding contributed to consortia by the private sector.
  • At least 50% reported co-funding accumulated over the life of the contract.
N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Research for Industry (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction - Stable Funding July 2008 The Foundation in its allocation of funds will ensure:
there will be progressive implementation of the Negotiated Investment Process for eligible programmes within Vote RST
to be considered eligible for a Negotiated Investment Process, a research programme will have to
  • be of sufficient size
  • demonstrate strategic relevance to government and/or sector goals
  • have undergone a technical review that demonstrates satisfactory performance, and
  • have previously received funding from the Foundation.
that research programmes eligible for the Negotiated Investment Process also satisfy quality and relevance criteria that include, but are not limited to, a combination of the following:
  • scientific and technical quality, including track-record of delivering benefit to New Zealand; and future potential to deliver benefit to New Zealand
  • long-term comparative advantage in an area of direct benefit to New Zealand, or unique significance to New Zealand
  • alignment with relevant end-user and government strategies
  • evidence of end-user support and industry co-funding, and
  • a track record of the research organisations' accountability for public money.
that Negotiated Investment Processes will be applied in the Research for Industry output expense with the total value of Negotiated Investment Process investments not to exceed 40% in this output expense.
Outcome-based Investment and funds to which a ministerial scheme applies do not count toward the calculation of the percentage cap within the Research for Industry output expenses, but do form part of the total relevant output expense.
Terms of Reference - Research Consortia - September 2007 Projects that meet the Scheme's objectives are eligible to receive funds from FRST.
The Scheme's objectives are to:
  • facilitate public/private research partnerships that provide early user engagement and increase private investment in New Zealand, and
  • invest in research through user-led research consortia in partnership with research providers. Partnerships will have clearly defined pathways to the implementation and commercialisation for their intended research outcomes.
In making funding decisions, FRST will fund projects that best meet the following criteria:
  • high scientific and technological quality of research
  • potential benefit to New Zealand through innovation
  • clearly defined partnerships and pathways to the implementation of the research outcomes
  • a fit-for-purpose science track record
  • potential to build RST capability, and
  • potential to increase the level of innovation within user groups.
Statement of Science Priorities - September 2008 Priorities to which FRST must adhere to in allocating funds are:
  • Government's Agenda for New Zealand Research, Science and Technology
  • the annual Estimates of Appropriations for Vote RST
  • the Minister of RST's Letter of Expectations to FRST
  • the output agreement between FRST and the Minister of RST
  • Current Roadmaps for Science (which currently includes those for Environmental Research, Biotechnology Research, Nanoscience, and Nanotechnologies and Energy Research)
  • the funds appropriated from the Sustainable Land Management and Climate Change Plan of Action, as set out in the annual Estimates of Appropriation for Vote Agriculture and Forestry, and the Strategic Research Framework developed for those funds, and
  • any other priority setting documents that the Minister may issue from time to time.
FRST shall confer with MoRST to ensure that FRST's allocation strategies, and the associated investment signals to the research sector, contribute to the government's objectives and the needs of the end-users of research and research organisations.
The Minister of RST expects FRST to seek guidance on matters including, but not limited to:
  • Research organisations' strategies.
  • Whole-of-government and government departments' strategies.
  • End-user and other private sector strategies.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Research for Industry (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004. 2004/05 211,501 211,501 211,501 211,501 211,501
GIF$ - Research consortia for research for economic growth (as at 2004 Budget) 2004/05 6,650 6,650 6,650 6,650 6,650
Reversal of a transfer inadvertently processed twice in previous Updates (as at 2004/05 OBU (DEFU)) 2004/05 (500) (500) (500) (500) (500)
Industry Based Research Funding for Increasing the number of Research Consortia (as at 2005 Budget (BEFU)) 2005/06 4,800 4,800 4,800 4,800 4,800
Supporting technology platforms for economic growth in New Zealand's Crown Research Institutes (as at 2005 Budget (BEFU)) 2005/06 (6,000) (6,000) (6,000) (6,000) (6,000)
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (23,445) (23,445) (23,445) (23,445) (23,445)
GST on Budget Initiatives (as at 2005 Budget (BEFU)) 2005/06 134 134 134 134 134
Pastoral Research (as at 2006 Budget (BEFU)) 2006/07 3,900 3,900 3,900 3,900 3,900
Energy Research (as at 2006 Budget (BEFU)) 2006/07 2,925 2,925 2,925 2,925 2,925
Increasing primary productivity and trade as at Budget 2007 BEFU 2007/08 2,000 2,000 2,000 2,000 2,000
Focusing on innovative foods as at Budget 2007 BEFU 2007/08 2,345 2,345 2,345 2,345 2,345
Baseline savings as at Budget 2007 BEFU 2007/08 (3,000) (3,000) - - -
Pastoral 21 as at Budget 2007 BEFU 2007/08 3,000 3,000 3,000 3,000 3,000
MBU 2007/08 rephase funding to 2008/09 2007/08 7,778 - - - -
Budget 2008 sustainable primary systems 2008/09 3,000 3,000 3,000 3,000 3,000
Budget 2008 biosecurity tools 2008/09 3,000 3,000 3,000 3,000 3,000
Budget 2008 hazard management 2008/09 2,000 2,000 2,000 2,000 2,000
Budget 2008 renewable energy 2008/09 2,000 2,000 2,000 3,000 3,000
Budget 2008 deep geothermal energy 2008/09 1,000 1,000 1,000 1,000 1,000
Budget 2008 backbone 2008/09 1,436 1,436 1,436 1,436 1,436
Budget 2008 energy TRST 2008/09 1,500 3,000 5,000 5,000 5,000
Budget 2008 transfer for e-science 2008/09 (3,556) - - - -
MBU 2009 restructure of undistributed funds held by FRST 2008/09 (9,778) 9,778 - - -
Budget 2009 reversal of unfunded Budget 2008 commitments 2009/10 - (8,611) (4,998) (6,918) (6,918)

Social Research (M56)#

Scope of Appropriation#

This appropriation is limited to obtaining public good science and technology that improves social well being.

Expenses#

Expenses - Social Research (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,860 5,860 5,860

Reasons for Change in Appropriation#

There is no change in the appropriation amount from 2008/09 to 2009/10.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Social Research (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and align with content guidelines specified in the contract. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Social Research (M56) - Research, Science and Technology
Reference Conditions
Statement of Science Priorities - September 2008. Priorities to which FRST must adhere to in allocating funds are:
  • Government's Agenda for New Zealand Research, Science and Technology
  • the annual Estimates of Appropriations for Vote RST
  • the Minister of RST's Letter of Expectations to FRST
  • the output agreement between the FRST and the Minister of RST
  • Current Roadmaps for Science (which currently includes those for Environmental Research, Biotechnology Research, Nanoscience, and Nanotechnologies and Energy Research)
  • the funds appropriated from the Sustainable Land Management and Climate Change Plan of Action, as set out in the annual Estimates of Appropriation for Vote Agriculture and Forestry, and the Strategic Research Framework developed for those funds, and
  • any other priority setting documents that the Minister may issue from time to time.
FRST shall confer with the MoRST to ensure that FRST's allocation strategies, and the associated investment signals to the research sector, contribute to the government's objectives and the needs of the end-users of research and research organisations.
The Minister of RST expects FRST to seek guidance on matters including, but not limited to:
  • Research organisations' strategies.
  • Whole-of-government and government departments' strategies.
  • End-user and other private sector strategies.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Social Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at 2004 Budget 2004/05 6,592 6,592 6,592 6,592 6,592
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (732) (732) (732) (732) (732)

Sustainable Energy Development (M56)#

Scope of Appropriation#

This appropriation is limited to providing financial assistance to private and public organisations demonstrating the potential of new sustainable low carbon energy technologies.

Expenses#

Expenses - Sustainable Energy Development (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,822 3,822 4,178

Reasons for Change in Appropriation#

This appropriation will increase by $356,000 to $4.178 million for 2009/10. The reason for the change is a funding restructure and transfer of the undistributed funds held by the FRST.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Sustainable Energy Development (M56) - Research, Science and Technology
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Sustainable Energy Development (M56) - Research, Science and Technology
Reference Conditions
Cabinet minute CBC Min (07) 16-1 The Low Carbon Technology Fund will assist private and public organisations, which have completed basic research and have demonstrated the potential of a new technology at the laboratory or proof of concept stage, to move through the pilot/demonstration plant stage.
Ministerial Direction- Low-Carbon Energy Technologies Fund - February 2008. The fund's objectives are to:
  • support the New Zealand Government's policy objectives for climate change, energy and transport, and
  • develop the results of existing research in second generation domestic biofuels technologies, as a priority, and other low-carbon energy technologies up to and including pilot/demonstration plant stage leading to their commercial development and use in New Zealand.
Funding criteria
The Foundation will fund proposals that:
  • are consistent with the objectives of the fund
  • are made by public or private sector organisations based in New Zealand, and
  • have a significant level of commercial/industry co-funding.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Sustainable Energy Development (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Establish Low Carbon Energy Technology Fund OBU 2007/08 2007/08 4,000 4,000 4,000 - -
Budget 2008 continued funding 2011/12 - - - 4,000 4,000
MBU 2009 restructure of undistributed funds held by FRST 2008/09 (178) 178 - - -
Budget 2009 reversal of unfunded Budget 2008 commitment 2009/10 - - - (4,000) (4,000)

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Research, Science and Technology
Provider 2008/09
Budgeted
$000
2008/09
Estimated Actual
$000
2009/10
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
The Foundation for Research, Science and Technology 427,164 427,164 431,753 Annual Report No Expiry
Health Research Council 70,656 70,656 68,618 Annual Report No Expiry
Royal Society of New Zealand 46,362 46,362 41,657 Section 32A No Expiry
Industrial Research Limited 5,764 5,764 5,674 Annual Report No Expiry
Fulbright New Zealand 142 142 142 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 - 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.
Advanced Network Capability Building (M56)
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
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 - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - The purpose of the Carter Observatory is maintained for the provision of public good science in New Zealand.
Carter Observatory Grant (M56)
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
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 - Getting measurable benefits from New Zealand's investment in research, science and technology.
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 - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - To provide for the establishment and maintenance of a world-class genomic research capability in New Zealand.
Genomics Research Infrastructure (M56)
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - Research providers are able to participate in research collaborations that attract international co-funding, to recruit highly experienced researchers from overseas and to support participation in international research programmes with a high relevance to New Zealand's economic, social and/or environmental development.
Impacts -
  • To provide funding to enable New Zealand researchers to respond to opportunities for international collaboration that arise out-of-cycle.
  • To co-invest with international partners in research programmes of joint interest that will involve researchers based in New Zealand.
  • Assist world-leading researchers to establish research programmes in New Zealand in key areas of strategic interest to New Zealand.
International Investment Opportunities Fund (M56)
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - The rate of commercialisation of innovations from publicly funded research by public sector research providers in increased.
Pre-Seed Accelerator Fund (M56)
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - To promote and advance science and technology.
Royal Society of New Zealand (M56)
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology. Rutherford Foundation (M56)
Objective - Human resources are supported.  
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology.
Objective - To improve primary health in New Zealand.
Support for Primary Health Research (M56)
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology. Supporting Promising Individuals (M56)
Objective - Human resources in research, science, and technology are supported and people with knowledge, skills and ideas are developed.  
Outcome - Getting measurable benefits from New Zealand's investment in research, science and technology. Technology New Zealand (M56)
Objective - Firms have increased ability to adopt new technology and to apply technological learning and technological innovation for business growth.  

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,926 3,926 1,300

Reasons for Change in Appropriation

This appropriation will decrease by $2.626 million to $1.300 million for 2009/10. The reason for the change is one-off funding provided in 2008/09 to develop the capability of users and a transfer to 2009/10 of $1.100 million for the development of grid middleware and access management systems for users.

Expected Results

Expected Results - Advanced Network Capability Building (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A FIA is appointed to administer the Advanced Network Capability Building Fund (ANCBF), or part thereof, for 2008/09. 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 Achieved
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 Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Provide capability funding for users of Advanced Network (CBC Min (05) 7/5) (as at 2005/06 OBU (DEFU)) 2005/06 1,221 - - - -
Budget 2008 increase for e-science 2008/09 3,805 200 200 - -
MBU 2008/09 rephase funding to 2009/10 2008/09 (1,100) 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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 883 883 694

Reasons for Change in Appropriation#

This appropriation will decrease by $189,000 to $694,000 for 2009/10. The reason for the change is an decrease in commitment under the funding arrangement agreed with New Zealand Synchrotron Group Limited.

Expected Results#

Expected Results - Australian Synchrotron (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The agreed contribution is paid in full and on time, as the Crown's contribution to ensure New Zealand access to the Australian Synchrotron. N/A Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Supporting existing infrastructure - Synchrotron (as at 2006 Budget (BEFU)) 2006/07 808 644 - - -
Supporting existing infrastructure OBU 2006/07 2006/07 - - 745 - -
Budget 2009 Foreign exchange cost pressure 2008/09 75 50 40 - -

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2 2 2

Reasons for Change in Appropriation#

Recognition of the statutory obligation of $1,500 per annum to the Carter Observatory Board.

Expected Results#

Expected Results - Carter Observatory Grant (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Crown's obligation is maintained by ensuring the annual funding is paid by due date. N/A Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 135 135 135

Reasons for Change in Appropriation#

This appropriation will not change between 2008/09 and 2009/10. The appropriation for 2009/10 does take account of the impact of foreign exchange and movement in the annual subscription.

Expected Results#

Expected Results - Convention Du Metre (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Membership obligations are maintained by ensuring the annual subscription is paid by due date. N/A Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Budget 2004 2004/05 86 86 86 86 86
Increase for subscription change and forex impacts (as at 2004/05 MBU) 2005/06 4 4 4 4 4
Convention du Metre subscription increase for 2007 and outyears (as at 2005/06 MBU) 2006/07 5 5 5 5 5
OBU 2008 annual adjustment for foreign exchange and subscription movements 2008/09 25 - - - -
Budget 2009 foreign exchange cost pressures 2008/09 15 40 40 40 40

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 50,612 50,612 60,612

Reasons for Change in Appropriation#

The increase of $10 million to $60.612 million for 2009/10 is to improve the ability of each CRI to develop capability to deliver public good science outcomes.

Expected Results#

Expected Results - CRI Capability Fund (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Each CRI annual report shows adequate reporting of the application of funding. N/A Achieved Achieved
A quarterly exception report to CCMAU from each CRI recipient of a grant identifies changes in the use and application of the grant received. N/A Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Budget 2004 2004/05 31,876 31,876 31,876 31,876 31,876
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)
Budget 2006 Supporting research capability in New Zealand's CRIs 2006/07 8,500 8,500 8,500 8,500 8,500
Budget 2007 Supporting research capability in New Zealand's CRIs 2007/08 4,000 4,000 4,000 4,000 4,000
Budget 2009 Improving CRIs ability to develop capability for public good science outcomes 2009/10 - 10,000 10,000 10,000 10,000

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 12,000

Reasons for Change in Appropriation#

This is a new appropriation for 2009/10.

Expected Results#

Expected Results - Genomics Research Infrastructure (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A six-monthly report to MoRST from the Genomics group:
  • Confirms establishment of the national genomics research infrastructure.
  • Identifies the use and application of the grant received
N/A N/A Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
OBU 2008 genomics research Infrastructure 2009/10 - 12,000 4,200 5,600 4,700

International Investment Opportunities Fund (M56)#

Scope of Appropriation#

This appropriation is limited to grants that support the ability of research providers to participate in international research collaborations and to recruit highly experienced researchers from overseas.

Expenses#

Expenses - International Investment Opportunities Fund (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,735 9,235 10,092

Reasons for Change in Appropriation#

This appropriation will increase by $735,000 to $10.092 million for 2009/10. The reason for the change is:

  • restructure of funding committed to support bilateral activity with the Republic of Korea
  • restructure of undistributed funds held by FRST
  • allowance made for foreign exchange cost pressures in the appropriations of Convention du Metre and Australian Synchrotron
  • a transfer for recognition of the statutory obligation to the Carter Observatory Board, and
  • reversal of the unfunded commitment made in Budget 2008.

Expected Results#

Expected Results - International Investment Opportunities Fund (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of active and new contracts and total dollar value or number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly or six-monthly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - International Investment Opportunities Fund (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction for the International Investment Opportunities Fund - August 2008.
Objectives 1 and 2
The Schemes objectives are to:
  • objective one - to provide funding to enable New Zealand researchers to respond to out-of-cycle opportunities to gain access to international research programmes and associated funding streams, and
  • objective two - to establish joint funding pools with other countries to facilitate research programmes of joint interest.
In making funding decisions, the Foundation will fund those programmes that, in its view, best meet the following criteria:
  • scientific and technological quality
  • potential benefit to New Zealand; including the ability to utilise overseas expertise and advances in science and technology, and the contribution to New Zealand's research, science and technology goals, and
  • consistency with the Government's Research, Science and Technology International Linkages Strategy, or other priority relationships published by MoRST.
In administering the fund, the Foundation will:
  • seek support from the research institutions submitting proposals
  • seek to leverage New Zealand funding to ensure the best outcomes for New Zealand research and researchers
  • seek to ensure benefit to New Zealand is captured for the well and well-being of New Zealanders
  • ensure the process is flexible and responsive to opportunity, and
  • work with other funding and investment agents receiving IIOF funds to ensure that the research community understands any differences to processes, including eligibility and criteria.
Terms of Reference - Strategic Relocation Fund - May 2006.
Objective 3
The criteria for awarding the Fund are:
  • Fit of the research of the incoming research group with New Zealand's strategic research interests and New Zealand's growth and innovation, for the national benefit.
  • Strength of the research group, particularly regarding contribution to economic outcomes. Strength is to be principally judged by track record, using the following attributes: quality of publication output; commercialisation output; and the ability of the principal investigator to be a champion for his or her research within the scientific and private sector.
  • Complementary fit with the host institution's research. A level of existing collaboration between research groups within the host institution and the incoming research group is desirable.
  • Demonstration of co-funding contribution of the host institution in terms of: the provision of infrastructure; the financial contribution to salaries and/or research costs; the provision of support services; a network of contacts; and the contribution to overheads.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - International Investment Opportunities Fund (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Budget 2004 GIF$ - International flexible response fund 2004/05 4,800 4,800 4,800 4,800 4,800
Budget 2005 Expansion of the International Investment Opportunities Fund 2005/06 4,800 4,800 4,800 4,800 4,800
Budget 2005 GST on Baselines - Non-Departmental output Classes 2005/06 (534) (534) (534) (534) (534)
Budget 2005 GST on Budget Initiatives 2005/06 (533) (533) (533) (533) (533)
MBU 2007/08 rephase funding to 2008/09 2007/08 3444 - - - -
MBU 2007/08 rephase Objective 2 funding to 2008/09 2007/08 1,000 - - - -
OBU 2008/09 rephase Objective 2 funding 2008/09 (900) 450 450 - -
MBU 2008/09 transfer for Carter Observatory 2008/09 (2) (2) (2) (2) (2)
MBU 2008/09 restructure of undistributed funds held by FRST 2008/09 (2,000) 2,000 - - -
Budget 2009 foreign exchange cost pressures 2008/09 (340) - - - -
Budget 2009 reversal of unfunded Budget 2008 commitment 2009/10 - (889) - - -

Pre-Seed Accelerator Fund (M56)#

Scope of Appropriation#

This appropriation is limited to grants to eligible organisations to accelerate their rate of commercialisation of publicly funded research.

Expenses#

Expenses - PreSeed Accelerator Fund (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,667 6,667 7,756

Reasons for Change in Appropriation#

This appropriation will increase by $1.089 million to $7.756 million for 2009/10. The reason for the change is:

  • A funding restructure and transfer of the undistributed funds held by FRST.
  • A reversal of the unfunded commitments made in Budget 2008.

Expected Results#

Expected Results - PreSeed Accelerator Fund (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved
At least 75% of contracts produce investor-ready milestones. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - PreSeed Accelerator Fund (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction - October 2007 Projects that meet the scheme's objectives are eligible to receive funds from FRST.
The scheme's objectives are to:
  • maximise the commercial benefits to New Zealand of previously publicly funded research
  • raise public sector providers' commercial capabilities and skills, and
  • improve public sector research providers links with potential private sector partners.
In making funding decisions, FRST will fund those projects that, in its view, best meet the following criteria:
  • projects that commercialise previously publicly funded research
  • have a clear link to a business strategy focused on developing projects with strong commercial potential (especially to create new exports) to the "investor-ready" point
  • are likely to be started sooner and completed earlier because of the scheme's support, and
  • have the potential to generate an enduring wealth creating capability in New Zealand.
FRST will have full discretion to manage the allocation of funds for the scheme in a way that will achieve the objectives of the scheme.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - PreSeed Accelerator Fund (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
As at Budget 2004 2004/05 4,800 4,800 4,800 4,800 4,800
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (533) (533) (533) (533) (533)
Increased support to the Pre Seed Accelerator Fund (as at 2006 Budget (BEFU)) 2006/07 4,000 4,000 4,000 4,000 4,000
MBU 2007/08 rephase funding to 2008/09 2007/08 2,667 - - - -
Budget 2008 transfer for e-science 2008/09 (249) - - - -
Budget 2008 transfer for stable funding and technical review 2008/09 (1,529) - - - -
Budget 2008 increase 2008/09 - 3,000 3,000 3,000 3,000
MBU 2008/09 rephase funding to 2009/10 2008/09 (2,489) 2,489 - - -
Budget 2009 reversal of unfunded Budget 2008 commitment 2009/10 - (3,000) (3,000) (3,000) (3,000)

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 500 500

Reasons for Change in Appropriation#

There is no change in appropriation between 2008/09 and 2009/10.

Expected Results#

Expected Results - Royal Society of New Zealand (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Annual grant to the Royal Society is paid on time. Achieved Achieved Achieved
A six-monthly report is provided by the Royal Society of the activities undertaken by the Society in relation to the funding. Achieved Achieved Achieved
Royal Society Annual Report provided to MoRST by 30 September 2010. N/A Achieved Achieved

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
OBU 2008/09 Provision of annual grant 2008/09 500 500 500 500 500

Rutherford Foundation (M56)#

Scope of Appropriation#

This appropriation is limited to a grant towards the development of human resources in research, science and technology.

Expenses#

Expenses - Rutherford Foundation (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 1,000 1,000

Reasons for Change in Appropriation#

There has been no change in appropriation.

Expected Results#

Expected Results - Rutherford Foundation (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Annual grant to the Rutherford Foundation is paid on time. Achieved Achieved Achieved
A six-monthly report is provided by the Rutherford Foundation Trust that identifies the amount (in number and monetary value) of grants made in the period and the purposes for which they have been made. Achieved Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Rutherford Foundation (M56) - Research, Science and Technology
Reference Conditions
Agreement with Rutherford Foundation Trust The Rutherford Foundation Trust administers grants that are made to eligible organisations and individuals that develop human resources in research, science and technology.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Rutherford Foundation (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Budget 2008 Provision of annual grant 2008/09 1,000 1,000 1,000 1,000 1,000

Support for Primary Health Research (M56)#

Scope of Appropriation#

This appropriation is limited to support for primary health research.

Expenses#

Expenses - Support for Primary Health Research (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 500 500

Reasons for Change in Appropriation#

There has been no change in appropriation.

Expected Results#

Expected Results - Support for Primary Health Research (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Annual grant to the Royal New Zealand College of General Practitioners is paid on time. Achieved Achieved Achieved
A six-monthly report is provided by the Royal New Zealand College of General Practitioners that identifies the number of grants made in the period and the purposes for which they have been made. Achieved Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Support for Primary Health Research (M56) - Research, Science and Technology
Reference Conditions
Cabinet decision The funding is to support the implementation of the Royal New Zealand College of General Practitioners, New Zealand Primary Health Research Strategy.
The funding is conditional on it being matched by funding from the Royal New Zealand College of General Practitioners, and aligned with the Ministry of Health's Primary Health Care Strategy.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Support for Primary Health Research (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
OBU 2008/09 provision of annual grant 2008/09 500 500 500 500 500

Supporting Promising Individuals (M56)#

Scope of Appropriation#

This appropriation is limited to grants to organisations and individuals that develop human resources in RS&T.

Expenses#

Expenses - Supporting Promising Individuals (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 18,657 18,657 19,407

Reasons for Change in Appropriation#

This appropriation will increase by $750,000 to $19.407 million for 2009/10. The reason for the change is:

  • provision for a post doctorate fellowship at the Salk Institute, and
  • restructure of undistributed funds held by FRST.

Expected Results#

Expected Results - Supporting Promising Individuals (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All Awards      
Number and total dollar value of new and active contracts or number of active and new contracts and dollars disbursed during the financial year will be reported in quarterly reports or six-monthly reports. N/A Achieved Achieved
100% of contracts meet the criteria set out in the funding agreement and any Ministerial Direction. N/A Achieved Achieved
Provision of data for the RST Scorecard supplied by 30 September 2010 and in alignment with content guidelines specified in the contract. N/A Achieved Achieved

Science and Technology Post-Doctoral Fellowships

     
At least 80 active fellowships. N/A   Achieved

Health Research Council awards

     
50-70 active fellowships and scholarships. N/A Achieved Achieved

Science, Mathematics and Technology Teacher Fellowships

     
Number of active contracts as set out in the relevant contract. N/A Achieved Achieved

Talented School Students Travel Award

     
Number of awards defined in the relevant contract. N/A Achieved Achieved

James Cook Research Fellowships.

     
Five active contracts. N/A Achieved Achieved

Te Tipu Putaiao Fellowships

     
At least 25 active fellowships. N/A Achieved Achieved

Fulbright Scholarships

     
At least ten scholarships awarded per annum subject to agreement with the Minister. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Supporting Promising Individuals (M56) - Research, Science and Technology
Reference Conditions
Terms of Reference - James Cook Fellowships - May 2006 Funding support will be provided to researchers who are recognised for their sustained excellence, to undertake study or research in their field of scientific eminence. This study or research may be undertaken in a location and institution of their own choosing whether in New Zealand or overseas. The term of the fellowship will be two years.
The award shall normally provide a stipend at the rate equivalent to an Associate Professor in a New Zealand university (but this may be varied at the discretion of the Society on a case-by-case basis), expenses specifically associated with taking up the Fellowship and possibly a contribution to research costs.
Fellows will be required to present their work, and its relevance to society, to the New Zealand public (in plain language) at some time during their tenure.
Terms of Reference - New Zealand Science, Mathematics and Technology Teacher Fellowships - 2005 Science, Mathematics and Technology Teacher Fellowships are open to all registered, practising school teachers in New Zealand whose work touches on science, mathematics or technology, or on other enterprise-related studies in conjunction with one of the above including school career advisors.
Eligible teachers can be:
  • at any stage of their career
  • teaching any age group
  • from any part of New Zealand.
The award of Fellowships will be based both on the quality of the project described in the application and the attributes of the applicants themselves. Preference will be given to applicants who demonstrate a clear understanding of the purpose of the Fellowships Programme and demonstrate that they will contribute effectively to that purpose.
Fellowships will normally be approved for a period of between one and four consecutive school terms.
The Fellowships Programme should be administered in a way which, over a period of three years, supports teachers covering a wide range of geographic and socio-economic sectors.
Ministerial Notice - Te Tipu Putaiao Fellowships The objectives of the Scheme will be achieved by providing funding support for undergraduate, post-graduate and early career stage New Zealand scientists, technologists and engineers to undertake research of relevance to one of the four Vision Matauranga themes identified below.

Nature of Support

Fellowships will be available to undertake research of relevance to one of the following four Vision Matauranga themes:
  • Indigenous Innovation: contributing to economic growth through research and development
  • Taiao: achieving environmental sustainability through Iwi and Hapu relationships with land and sea
  • Oranga: improving social well-being, and
  • Matauranga: exploring the interface between indigenous knowledge and RST.
Fellows under the Scheme will be selected primarily on the basis of:
  • Benefits to New Zealand: alignment and contribution to Maori knowledge and innovation theme and benefit to New Zealand
  • Science and Technology Benefits to New Zealand: This may include attributes such as quality of proposed science, science capability, and Maori knowledge research capability, development
  • Ability to Deliver: This may include attributes such as academic record and host institution support, and
  • Implementation Pathway: This may include attributes such as quality of technology transfer and uptake pathway.
The primary focus of the Scheme will be on science, technology and engineering disciplines. Other academic disciplines may be considered, where relevant, at the margin of the scheme.
New Zealand Science and Technology Post Doctoral Fellowship Scheme - August 1995 The objectives of the Scheme are to:
  • assist New Zealand doctoral graduates to further develop and enhance their skills and knowledge in science, technology and engineering, and where appropriate to focus some of this development and enhancement for the benefit of New Zealand
  • assist New Zealand post-doctoral researchers to obtain exposure to international developments in science, technology and engineering of potential interest to New Zealand
  • assist New Zealanders who have completed doctoral degrees overseas to undertake post-doctoral research in New Zealand
  • assist New Zealanders who have completed a period of up to five years of research overseas following completion of their doctoral degree to return to employment in the New Zealand science, technology and engineering sector, and
  • bridge the potential gap between attainment of doctoral degree and employment in the New Zealand science, technology and engineering sector.

Mechanisms of the Scheme

The objectives of the Scheme will be achieved by providing support, in the form of fellowships, for talented New Zealand post-doctoral students undertaking research in approved research institutes or business enterprises in New Zealand or overseas. It is anticipated that recipients of the Fellowship undertaking their research overseas will, upon the completion of their Fellowship, return to New Zealand for employment in the science, technology and engineering sector.

Targeting of Support

The Scheme will be targeted at New Zealand doctoral graduates who have recently had their degrees confirmed. It is expected that each individual Fellowship will have a duration of at least three years.
Terms of Reference - Talented Secondary School Science Students Travel Award Objectives:
  • To assist talented secondary school students with the cost of participating in an overseas project, activity, event or learning opportunity involving science or technology.
Principles for determining support:
  • Only individual school students that have been invited to attend an event may apply for the award, to cover their direct costs.
To receive funding applicants will be assessed on:
  • demonstration of scientific or technological practice
  • contribution to activities outside the classroom
  • academic performance in the subject relating to the proposed project, and
  • ability to be a good ambassador for New Zealand.
Three testimonials (one from the School Principal) and record of academic performance will be required. The student may be required to provide proof of their invitation.
Fulbright Scholarships - Cabinet decision Increase the number of Fulbright researchers who study in areas important for economic growth and who commit to making a contribution to New Zealand's innovation system on completion of study.

 

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Supporting Promising Individuals (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Budget 2004 2004/05 15,848 15,848 15,848 15,848 15,848
Increase investment in Health Research (as at 2005 Budget (BEFU)) 2005/06 3,000 3,000 3,000 3,000 3,000
Increasing Supply of Fulbright researchers in areas important for economic growth (as at 2005 Budget (BEFU)) 2005/06 675 675 675 675 675
Transfer to RCM for RSNZ for Talented Young NZers & Teacher Fellowships Schemes (as at 2005/06 OBU (DEFU)) 2005/06 (39) (39) (39) (39) (39)
Transfer to RCM for Fulbright New Zealand for admin of Science Scholarships (as at 2005/06 OBU (DEFU)) 2005/06 (142) (142) (142) (142) (142)
Reversal of rollouts made in error OBU 2006/07 2006/07 (380) (380) (380) (380) (380)
Reschedule Carter Funding MBU 2006/07 2006/07 271 271 271 271 271
Restructure of Carter Observatory MBU 2006/07 2006/07 (271) (271) (271) (271) (271)
MBU 2007/08 rephase funding to 2008/09 2007/08 250 - - - -
Transfer to RCM for RSNZ for increased administration cost of Teacher Fellowship Scheme MBU 2007/08 2008/09 (130) (130) (130) (130) (130)
OBU 2008/09 provision for a post doctorate fellowship at the Salk Institute 2008/09 75 75 75 75 75
MBU 2008/09 rephase funding to 2009/10 2008/09 (500) 500      

Technology New Zealand (M56)#

Scope of Appropriation#

This appropriation is limited to grants that enhance the technological capability of businesses through the development and adoption of new technologies and new technological business practices.

Expenses#

Expenses - Technology New Zealand (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 34,379 34,379 47,405

Reasons for Change in Appropriation#

This appropriation will increase by $13.026 million to $47.405 million for 2008/10. The reasons for the change are:

  • funding provided to the genomics research infrastructure
  • a funding restructure of the undistributed funds held by the FRST, and
  • reversal of the unfunded commitment made in Budget 2008.

Expected Results#

Expected Results - Technology New Zealand (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Contracts meet the criteria set out in the relevant Ministerial Direction. N/A Achieved Achieved
At least 15% of participants have not previously had assistance from Technology New Zealand schemes. N/A Achieved Achieved
The FIA reports quarterly on the number and value of grants made under the grant schemes, identifying their individual purpose and application. Achieved Achieved Achieved
Capability grants. Number and total value disbursed of new and active contracts is reported in all quarterly reports for 2009/10. N/A Achieved Achieved
Capacity grants. Number and total value disbursed of new and active contracts is reported in all quarterly reports for 2009/10. N/A Achieved Achieved
The Foundation will ensure that on average the value of targeted grants is not more than 50% of the proposed cost of research and development projects. N/A Achieved Achieved
100% of information as required will be reported as per the Information Sharing Agreement between MoRST and the Foundation. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Technology New Zealand (M56) - Research, Science and Technology
Reference Conditions
Ministerial Direction - Technology for Business Grants Scheme - July 2008 The Scheme is intended to:
  • grow investment in research and development in areas of Government priority as outlined in the Foundation's Statement of Intent, or
  • improve firms' ability to develop new or more sophisticated technologies, or
  • improve research and development skills, and related business and capability grants.
Targeted grants encourage or support research and development activities. The foundation will ensure that:
  • the majority of targeted grants encourage or support high risk "stretch" research and development activities, as determined by the foundation, and
  • grants are allocated to firms in areas of Government priority as outlined in the Foundation's Statement of Intent, and
  • it considers in the case of every grant the level of co-funding to be provided by the firm, and on average across the total amount of targeted grants the funding allocated by the Foundation is not more than 50% of the proposed cost of research and development projects.
Capability grants will encourage firms seeking to develop new or more sophisticated research and development skills and related business management practices. The foundation must ensure that capability grants result in firms:
  • that have not previously undertaken research and development beginning to do so, or
  • sustaining on-going research and development activity, or
  • improving uptake of external technologies, including International technologies, or
  • adopting business practices to support increased or improved research and development activity.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Technology New Zealand (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Budget 2004 2004/05 50,999 50,999 50,999 50,999 50,999
Transfer for admin. cost of TBG programme (as at 2004/05 OBU (DEFU)) 2004/05 (225) (225) (225) (225) (225)
Support for business R&D - the expansion of Technology New Zealand (as at 2005 Budget (BEFU)) 2005/06 14,400 14,400 14,400 14,400 14,400
Expanding the Technology for Industry Fellowships (TIF) Scheme (as at 2005 Budget (BEFU)) 2005/06 4,600 4,600 4,600 4,600 4,600
GST on Baselines - Non-Departmental output Classes (as at 2005 Budget (BEFU)) 2005/06 (5,642) (5,642) (5,642) (5,642) (5,642)
GST on Budget Initiatives (as at 2005 Budget (BEFU)) 2005/06 (2,111) (2,111) (2,111) (2,111) (2,111)
TechNZ - reduction to baselines through errors in rollout in previous years (as at 2005/06 OBU (DEFU)) 2005/06 (11,638) (11,638) (11,638) (11,638) (11,638)
TechNZ - incorporation of 2005 Budget decision to support R and D and relating to rollout year of 2009/10 (as at 2005/06 OBU (DEFU)) 2009/10 - 4267 4267 4267 4267
Increased support to the Pre Seed Accelerator Fund (as at 2006 Budget (BEFU)) 2006/07 (3,000) - - - -
Transfer to assist fund access to the Australian Synchrotron (as at 2006 Budget (BEFU)) 2006/07 - - (368) (368)  
Commercialisation and Innovation as at 2007 Budget BEFU 2007/08 3,000 3,000 3,000 3,000 3,000
Baseline savings as at 2007 Budget BEFU 2007/08 (9,400) (9,600) (9,600) (9,000) (9,000)
Rollover reversal one-off adjustment OBU 2007/08 2007/08 - - - 368 -
MBU 2007/08 rephase funding to 2008/09 2007/08 12,222 - - - -
Budget 2008 transfer of funding from Pre-Seed Accelerator Fund 2008/09 729 - - - -
Budget 2008 transfer to R and D Facilitation and Promotion Service NDE 2008/09 (3,000) (3,000) (3,000) (3,000) (3,000)
OBU 2008/09 transfer to the genomics research infrastructure 2008/09 (5,000) - - - -
MBU 2008/09 rephase funding to 2009/10 2008/09 (11,555) 11,555 - - -
Budget 2009 reversal of unfunded Budget 2008 commitments 2009/10 - (9,200) (750) (250) -

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 Investment Opportunities Fund Reported in the Annual Reports for the Foundation for Research, Science and Technology and the Health Research Council, and under Section 32A for activity administered by the Royal Society of New Zealand
Pre-Seed Accelerator Fund Reported in the Annual Reports for the Foundation for Research, Science and Technology
Support for Primary Health Research Section 32A
Royal Society of New Zealand Section 32A
Rutherford Foundation Section 32A
Supporting Promising Individuals Reported in the Annual Reports for the Foundation for Research, Science and Technology and the Health Research Council, and under Section 32A for activity administered by the Royal Society of New Zealand and Fulbright New Zealand
Technology New Zealand Reported in the Annual Reports for 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 - Getting measurable benefits from New Zealand's investment in research, science and technology.
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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 310 310 372
Intangibles 144 144 358
Other - - -

Total Appropriation

454 454 730
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 310 310 372
Intangibles 144 144 358
Other - - -

Total Appropriation

454 454 730

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 the years and increases in 2009/10 to 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
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Capital expenditure on Ministry infrastructure achieves expected expenditure levels N/A Achieved Achieved

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 - To establish information management systems that simplify processes used to select and award science and research funding.
Foundation for Research, Science and Technology

Foundation for Research Science and Technology (M56)#

Scope of Appropriation

Investment in information technology for FRST.

Capital Expenditure

Capital Expenditure - Foundation for Research Science and Technology (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 1,000

Reasons for Change in Appropriation

Equity investment in FRST to establish information management systems that simplify processes used to select and award science and research funding.

Expected Results

Expected Results - Foundation for Research Science and Technology (M56) - Research, Science and Technology
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Investment is delivered within project scope and timetable. N/A N/A Achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Foundation for Research Science and Technology (M56) - Research, Science and Technology
Reference Conditions
  Deliver better functionality for contract management, application assessment, fund management, and investment processes. Overall simplified processes are expected.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Foundation for Research Science and Technology (M56) - Research, Science and Technology
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Budget 2009 Capital injection 2009/10 - 1,000 - - -

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Research, Science and Technology
Appropriation Reporting Mechanism
Foundation for Research, Science and Technology 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 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.

Classes of outputs incorporated in the Statement of Forecast Service Performance for each department
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 all the departmental output expense appropriations in Vote Research, Science and Technology.

Forecast Financial Statements of Departments#

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 2009 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 a maturity of 3 months or less from date of acquisition.

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 a maturity of no more than three months from date of acquisition
  • 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 2008) 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 2010#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010 - Education
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   1,512,165 1,558,161 1,630,846 1,661,696
Department(s)   5,195 3,015 3,161 3,249
Other revenue 1 5,870 6,856 10,056 9,456
Gains   - - - -
Interest   - - - -
Total Income   1,523,230 1,568,032 1,644,063 1,674,401

Expenses

         
Personnel   187,480 192,795 192,795 192,237
Operating 2 225,199 240,397 242,769 247,535
Depreciation and amortisation   352,737 384,965 415,259 425,885
Capital charge   738,645 749,875 793,240 808,744
Finance costs   - - - -
Other   2,085 - - -
Total Expenses   1,506,146 1,568,032 1,644,063 1,674,401
Net Surplus / (Deficit)   - - - -
Other comprehensive income   705,741 - - -
Total Comprehensive Income   722,825 - - -

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010 - Education
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   3,935,626 4,043,005 3,986,684 4,108,207
Revaluation reserve   5,900,836 5,930,633 6,596,874 6,596,874
Other reserves   - - - -
Taxpayers' Funds Opening Balance   9,836,462 9,973,638 10,583,558 10,705,081

Changes in Taxpayers' Funds

         
Comprehensive income for the period   722,825 - - -
Repayment of surplus   (17,084) - - -
Capital contribution   65,000 117,633 159,996 183,633
Capital withdrawal   (23,645) - (38,473) (5,217)
Other   - - - -
Total Changes in Taxpayers' Funds   747,096 117,633 121,523 178,416

Balance at 30 June

         
General funds   3,986,684 4,160,638 4,108,207 4,286,623
Revaluation reserve   6,596,874 5,930,633 6,596,874 6,596,874
Other reserves   - - - -
Taxpayers' Funds Closing Balance   10,583,558 10,091,271 10,705,081 10,883,497

Forecast Statement of Financial Position as at 30 June 2010#

Forecast Statement of Financial Position as at 30 June 2010 - Education
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   55,854 68,666 27,930 30,305
Debtors and other receivables 3 29,061 74,642 23,211 22,211
Prepayments   24,424 3,241 27,103 26,672
Inventories   - - - -
Other current assets   - - - -
Total Current Assets   109,339 146,549 78,244 79,188

Non-current Assets

         
Property, plant and equipment 4 10,516,939 9,953,253 10,643,000 10,832,402
Intangible assets 5 25,978 43,275 31,810 34,208
Other non-current assets   49,756 34,675 49,756 35,428
Total Non- current Assets   10,592,673 10,031,203 10,724,566 10,902,038
Total Assets   10,702,012 10,177,752 10,802,810 10,981,226

Liabilities

         

Current Liabilities

         
Creditors and other payables   84,802 72,700 81,162 81,162
Repayment of surplus   17,084 - - -
Employee entitlements   11,484 9,129 10,387 10,387
Other current liabilities   - - - -
Total Current Liabilities   113,370 81,829 91,549 91,549

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   5,084 4,652 6,180 6,180
Other non-current liabilities   - - - -
Total Non-current Liabilities   5,084 4,652 6,180 6,180
Total Liabilities   118,454 86,481 97,729 97,729

Taxpayers' Funds

         
General funds   3,986,684 4,160,638 4,108,207 4,286,623
Revaluation reserve   6,596,874 5,930,633 6,596,874 6,596,874
Other reserves   - - - -
Total Taxpayers' Funds   10,583,558 10,091,271 10,705,081 10,883,497
Total Liabilities and Taxpayers' Funds   10,702,012 10,177,752 10,802,810 10,981,226

Statement of Forecast Cash Flows for the year ending 30 June 2010#

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2010 - Education
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   1,532,165 1,558,161 1,630,846 1,661,696
Department(s)   4,670 3,015 2,895 3,249
Other   7,331 7,856 16,172 10,456
Interest   - - - -

Payments to:

         
Suppliers   (234,541) (241,718) (244,634) (248,818)
Employees   (184,258) (194,474) (191,475) (190,954)
Capital charge   (738,645) (749,875) (793,240) (808,744)
Goods and services tax (net)   (527) (1,000) (106) -
Other operating activities   - - - -
Net Cash from Operating Activities 6 386,195 381,965 420,458 426,885

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   22,847 - 20,876 18,777
Sale of intangible assets   303 - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (418,126) (465,002) (552,568) (608,226)
Intangible assets   (8,181) (14,345) (17,188) (13,477)
Other non-current assets   - - - -
Net Cash from Investing Activities   (403,157) (479,347) (548,880) (602,926)

Cash Flow from Financing Activities

         
Capital contribution   65,000 113,693 156,056 183,633
Other financing cash inflows   - - - -
Repayment of surplus   (122) - (17,085) -
Capital withdrawal   (23,645) - (38,473) (5,217)
Other financing cash outflows   - - - -
Net Cash from Financing Activities   41,233 113,693 100,498 178,416
Net Increase / (Decrease) in Cash   24,271 16,311 (27,924) 2,375
Cash at the beginning of the year   31,583 52,355 55,854 27,930
Cash at the end of the year   55,854 68,666 27,930 30,305

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 2008/09 is used as the opening position for the 2009/10 forecasts.

These assumptions are adopted as at 22 April 2009.

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 2009/10 actual financial statements include:

  • revaluation of school sector land and buildings at the end of June 2009 may significantly alter the value on the Ministry balance sheet, which would in turn change the capital charge and 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 The Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting entity

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.

The reporting entity is known as the Ministry of Education, which includes all activities carried out in terms of the outputs purchased by the Minister of Education and the Minister for Tertiary Education.

Authorisation Statement

These forecast financial statements were authorised for issue by the Secretary for Education on 22 April 2009. 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 set out below:

  • 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.
  • Computer software - 3 to 5 years.
  • Motor vehicles - 4 years.
  • Plant and equipment - 3 to 8 years.

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
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
School house rentals 4,239 4,056 4,210 4,000
Sundry rentals 269 250 242 250
Sale of learning materials 319 400 218 250
Special education 418 500 480 450
Receipts from property disposal - - 4,300 4,000
Miscellaneous revenue 625 1,650 606 506

Total other revenue

5,870 6,856 10,056 9,456

Note 2 - Operating Expenses#

Note 2 - Operating Expenses - Education
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Consultants' fees 3,540 4,000 3,500 3,500
Overseas travel 893 660 720 720
Domestic travel 11,751 8,100 11,998 11,500
Contracts for services 76,379 85,000 84,818 85,000
Special education payments 72,256 70,000 75,140 75,000
Operating lease rental 18,354 17,200 18,537 18,500
Maintenance of school land and buildings 18,117 18,000 21,604 21,000
Other 23,909 37,437 26,452 32,315

Total operating expenses

225,199 240,397 242,769 247,535

Note 3 - Debtors and Other Receivables#

Note 3 - Debtors and Other Receivables - Education
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Debtor Crown 15,600 35,600 15,600 15,600
Debtors other 13,461 39,042 7,611 6,611

Total debtors and other receivables

29,061 74,642 23,211 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 2009 3,385,896 7,612,450 - 68,259 11,790 11,078,395
Additions by purchase 28,000 584,000 - 9,062 3,144 624,206
Additions internally developed - - - - - -
Revaluation increase - - - - - -
Transfers between classes - - - - - -
Disposals (7,600) (10,300) - (10,023) (3,144) (31,067)
Balance as at 30 June 2010 3,406,296 8,186,150 - 67,298 11,790 11,671,534

Accumulated depreciation and impairment losses

           
Balance as at 1 July 2009 - 391,515 - 39,827 4,053 435,395
Depreciation expense - 401,766 - 10,914 2,126 414,806
Eliminate on disposal - - - (8,802) (2,267) (11,069)
Eliminate on revaluation - - - - - -
Transfers between classes - - - - - -
Impairment losses - - - - - -
Balance as at 30 June 2010 - 793,281 - 41,939 3,912 839,132

Carrying amount as at 30 June 2010

3,406,296 7,392,869 - 25,359 7,878 10,832,402

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 2009 - - 72,819 72,819
Additions by purchase - - - -
Additions internally developed - - 13,477 13,477
Disposals - - (8,000) (8,000)
Balance as at 30 June 2010 - - 78,296 78,296

Accumulated amortisation and impairment losses

       
Balance as at 1 July 2009 - - 41,009 41,009
Amortisation expense - - 11,079 11,079
Disposals - - (8,000) (8,000)
Impairment losses - - - -
Balance as at 30 June 2010 - - 44,088 44,088
Carrying amount as at 30 June 2010 - - 34,208 34,208

Note 6 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010#

Note 6 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010 - Education
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Net surplus /  (deficit)

17,084 - - -

Add/ (less) non-cash items

       
Depreciation and amortisation expense 352,823 384,965 415,259 425,885
Total non-cash items 352,823 384,965 415,259 425,885

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

       
(Gains)/ losses on disposal property, plant and equipment 1,790 - - -
Total items classified as investing or financing activities 1,790 - - -

Add/ (less) movements in working capital items

       
(Inc)/ Dec in debtors and other receivables 21,145 1,000 5,850 1,000
(Inc)/ Dec in prepayments (888) - (1,992) -
Inc/ (Dec) in creditors and other payables (7,270) (1,000) 1,342 -
Inc/ (Dec) in employee entitlements 2,339 (1,100) (1,097) -
Net movements in working capital items 15,326 (1,100) 4,103 1,000

Add/ (less) movements in non-current liabilities

       
Inc/ (Dec) in employee entitlements (828) (1,900) 1,096 -
Net cash from operating activities 386,195 381,965 420,458 426,885

Forecast Financial Statements Education Review Office#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010 - Education Review Office
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   27,859 27,769 28,675 27,959
Department(s)   570 628 822 803
Other revenue   15 40 40 40
Gains   - - - -
Interest   - - - -
Total Income   28,444 28,437 29,537 28,802

Expenses

         
Personnel   20,419 20,794 21,515 20,971
Operating 1 6,871 6,312 6,748 6,462
Depreciation and amortisation   1,130 1,191 1,158 1,253
Capital charge   118 140 116 116
Finance costs   - - - -
Other   22 - - -
Total Expenses   28,560 28,437 29,537 28,802
Net Surplus / (Deficit)   - - - -
Other comprehensive income   - - - -
Total Comprehensive Income   (116) - - -

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010 - Education Review Office
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Balance at 1 July

         
General funds   3,619 3,726 3,598 3,598
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   3,619 3,726 3,598 3,598

Changes in Taxpayers' Funds

         
Comprehensive income for the period   (116) - - -
Repayment of surplus   - - - -
Capital contribution   - - - -
Capital withdrawal   - - - (26)
Other   95 - - -
Total Changes in Taxpayers' Funds   (21) - - (26)

Balance at 30 June

         
General funds   3,598 3,726 3,598 3,572
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   3,598 3,726 3,598 3,572

Forecast Statement of Financial Position as at 30 June 2010#

Forecast Statement of Financial Position as at 30 June 2010 - Education Review Office
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   3,748 2,193 3,280 3,160
Debtors and other receivables   218 120 230 230
Prepayments   108 26 100 100
Inventories   - - - -
Other current assets   - - - -
Total Current Assets   4,074 2,339 3,610 3,490

Non-current Assets

         
Property, plant and equipment   3,242 3,960 3,325 3,361
Intangible assets   542 586 1,263 1,074
Other non-current assets   - - - -
Total Non- current Assets   3,784 4,546 4,588 4,435
Total Assets   7,858 6,885 8,198 7,925

Liabilities

         

Current Liabilities

         
Creditors and other payables   1,843 1,113 1,988 1,986
Repayment of surplus   - - - -
Employee entitlements   1,131 1,096 1,341 1,096
Other current liabilities   - - - -
Total Current Liabilities   2,974 2,209 3,329 3,082

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   1,286 950 1,271 1,271
Other non-current liabilities   - - - -
Total Non-current Liabilities   1,286 950 1,271 1,271
Total Liabilities   4,260 3,159 4,600 4,353

Taxpayers' Funds

         
General funds   3,598 3,726 3,598 3,572
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   3,598 3,726 3,598 3,572
Total Liabilities and Taxpayers' Funds   7,858 6,885 8,198 7,925

Statement of Forecast Cash Flows for the year ending 30 June 2010#

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2010 - Education Review Office
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   27,859 27,769 28,675 27,959
Department(s)   535 628 811 803
Other   13 40 39 40
Interest   - - - -

Payments to:

         
Suppliers   (6,854) (6,577) (6,594) (6,464)
Employees   (20,127) (20,529) (21,320) (21,216)
Capital charge   (118) (140) (117) (116)
Goods and services tax (net)   - - - -
Other operating activities   - - - -
Net Cash from Operating Activities 2 1,308 1,191 1,494 1,006

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   21 131 100 100
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (678) (1,124) (1,051) (900)
Intangible assets   (78) (333) (1,011) (300)
Other non-current assets   - - - -
Net Cash from Investing Activities   (735) (1,326) (1,962) (1,100)

Cash Flow from Financing Activities

         
Capital contribution   - - - -
Other financing cash inflows   - - - -
Repayment of surplus   (50) - - -
Capital withdrawal   - - - (26)
Other financing cash outflows   - - - -
Net Cash from Financing Activities   (50) - - (26)
Net Increase / (Decrease) in Cash   523 (135) (468) (120)
Cash at the beginning of the year   3,225 2,328 3,748 3,280
Cash at the end of the year   3,748 2,193 3,280 3,160

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 224 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 22 April 2009.

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 22 April 2009. 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
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Operating expenses include:        
Consultancy 285 300 369 300
Fees paid to Auditors for Audit of Financial Reports 49 54 54 55
Fees paid to Auditors for the Opening IFRS Balance Sheet 9 - - -
Domestic Travel 2,371 2,392 2,470 2,300
International Travel 82 75 83 80
Leasing and Rental 2,097 2,100 2,146 2,125
Other 1,978 1,391 1,626 1,602

Total operating expenses

6,871 6,312 6,748 6,462

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 2010#

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 2010 - Education Review Office
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Net Surplus (deficit)

(116) - - -

Add/(less) non-cash items

       
Depreciation and amortisation expense 1,130 1,191 1,158 1,253
Total non-cash items
1,130 1,191 1,158 1,253

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

       
Net loss on sale of property, plant and equipment 22 - - -
Total items classified as investing or financing activities
22 - - -

Add/less movements in working capital items

       
(Inc)/ Dec in debtors and receivables (12) - (11) -
(Inc)/ Dec in prepayments (21) - 7 -
Inc/ (Dec) in creditors and payables 116 - (84) 239
Inc/ (Dec) in current provisions - - 229 (241)
Inc/ (Dec) in employee entitlements 48 - 210 (245)
Net movements in working capital items
131 - 351 (247)

Add/ (less) movements in non-current liabilities

       
(Inc)/ Dec in employee entitlements 141 - (15) -
Net movements in non-current liabilities
141 - (15) -

Net cash from operating activities

1,308 1,191 1,494 1,006

Forecast Financial Statements Ministry of Research, Science and Technology #

Statement of Forecast Comprehensive Income for the year ending 30 June 2010#

Statement of Forecast Comprehensive Income for the year ending 30 June 2010 - Research, Science and Technology
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Income

         
Crown   13,634 13,977 14,247 13,587
Department(s)   208 239 239 204
Other revenue   80 - 80 -
Gains   - - - -
Interest   - - - -
Total Income   13,922 14,216 14,566 13,791

Expenses

         
Personnel   8,340 8,300 9,400 8,950
Operating 1 4,608 5,021 3,811 3,953
Depreciation and amortisation   608 714 674 707
Capital charge   181 181 181 181
Finance costs   - - - -
Other   10 - - -
Total Expenses   13,747 14,216 14,066 13,791
Net Surplus / (Deficit) 2 - - 500 -
Other comprehensive income   - - - -
Total Comprehensive Income   175 - 500 -

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010 - Research, Science and Technology
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
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   175 - 500 -
Repayment of surplus   (175) - (500) -
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 2010#

Forecast Statement of Financial Position as at 30 June 2010 - Research, Science and Technology
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   3,386 2,911 3,535 3,012
Debtors and other receivables   169 84 84 84
Prepayments   15 - - -
Inventories   - - - -
Other current assets   - - - -
Total Current Assets   3,570 2,995 3,619 3,096

Non-current Assets

         
Property, plant and equipment   1,766 1,608 1,634 1,572
Intangible assets   471 436 383 468
Other non-current assets   - - - -
Total Non- current Assets   2,237 2,044 2,017 2,040
Total Assets   5,807 5,039 5,636 5,136

Liabilities

         

Current Liabilities

         
Creditors and other payables   2,795 2,305 2,305 2,305
Repayment of surplus   175 - 500 -
Employee entitlements   402 295 420 420
Other current liabilities   - - - -
Total Current Liabilities   3,372 2,600 3,225 2,725

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   24 28 - -
Other non-current liabilities   - - - -
Total Non-current Liabilities   24 28 - -
Total Liabilities   3,396 2,628 3,225 2,725

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   5,807 5,039 5,636 5,136

Statement of Forecast Cash Flows for the year ending 30 June 2010#

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2010 - Research, Science and Technology
    2007/08 2008/09 2009/10
  Note Actual
$000
In 2008
Budget
$000

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   13,634 13,977 14,247 13,587
Department(s)   264 239 276 204
Other   72 - 128 -
Interest   - - - -

Payments to:

         
Suppliers   (4,735) (5,021) (4,351) (3,953)
Employees   (8,234) (8,300) (9,406) (8,950)
Capital charge   (181) (181) (181) (181)
Goods and services tax (net)   (42) - 65 -
Other operating activities   - - - -
Net Cash from Operating Activities 2 778 714 778 707

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   (88) (167) (310) (372)
Intangible assets   (528) (164) (144) (358)
Other non-current assets   - - - -
Net Cash from Investing Activities   (616) (331) (454) (730)

Cash Flow from Financing Activities

         
Capital contribution   - - - -
Other financing cash inflows   - - - -
Repayment of surplus   (375) - (175) (500)
Capital withdrawal   - - - -
Other financing cash outflows   - - - -
Net Cash from Financing Activities   (375) - (175) (500)
Net Increase / (Decrease) in Cash   (213) 383 149 (523)
Cash at the beginning of the year   3,599 2,528 3,386 3,535
Cash at the end of the year   3,386 2,911 3,535 3,012

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 89 staff positions (85 full time equivalents).
  • Operating costs are based on historical experience. The general historical pattern is expected to continue.
  • Estimated year end information for 2008/09 is used as the opening position for the 2009/10 forecasts.

These assumptions are adopted as at 1 April 2009.

Factors that could lead to material differences between the forecast financial statements and the 2008/09 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 2009. 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
Note 1 - Operating - Research, Science and Technology
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Operating expenses include:        
Consultants' fees 700 700 700 700
Overseas travel 241 300 200 250
Domestic travel 208 220 175 200
Other 3,459 3,801 2,736 2,803
Total operating expenses 4,608 5,021 3,811 3,953

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010#

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010 - Research, Science and Technology
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000

Net surplus / (deficit)

175 - 500 -

Add/ (less) non-cash items

       
Depreciation and amortisation expense 608 714 674 707
Net foreign exchange (gains)/losses - - - -
Total non-cash items 608 714 674 707

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

       
(Gains)/ losses on disposal property, plant and equipment 10 - - -
Total items classified as investing or financing activities 10 - - -

Add/ (less) movements in working capital items

       
(Inc)/ Dec in debtors and other receivables 48 - 85 -
(Inc)/ Dec in prepayments (15) - 15 -
Inc/ (Dec) in creditors and other payables (174) - (342) -
Inc/ (Dec) in current provisions 20 - (148) -
Inc/ (Dec) in employee entitlements 110 - 18 -
Net movements in working capital items (11) - (372) -

Add/ (less) movements in non-current liabilities

       
Inc/ (Dec) in employee entitlements (4) - (24) -
Net cash from operating activities 778 714 778 707

 

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 base 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 is 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
Vote Commerce
Vote Communications
Vote Consumer Affairs
Vote Energy
Vote Tourism
Ministry of Economic Development
Vote Transport Ministry of Transport
Vote Labour
Vote ACC
Vote Employment
Vote Immigration
Department of Labour
Education and Science Sector - B.5A Vol.2  
Vote Education Ministry of Education
Vote Crown Research Institutes (this Vote is administered by the Treasury, which is in the Finance and Government Administration Sector.)  
Vote Education Review Office Education Review Office
Vote Research, Science and Technology Ministry of Research, Science and Technology
Environment Sector - B.5A Vol.3  
Vote Environment
Vote Climate Change
Ministry for the Environment
Vote Conservation Department of Conservation
Vote Local Government (this Vote is administered by the Department of Internal Affairs, which is in the National Identity Sector)  
Vote Parliamentary Commissioner for the Environment Parliamentary Commissioner for the Environment
External Sector - B.5A Vol.4  
Vote Foreign Affairs and Trade
Vote Official Development Assistance
Ministry of Foreign Affairs and Trade
Vote Defence Ministry of Defence
Vote Defence Force
Vote Veterans' Affairs - Defence Force
New Zealand 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
Vote State-Owned Enterprises
The Treasury
Vote Revenue Inland Revenue Department
Vote Ministerial Services (this Vote is administered by the Department of Internal Affairs, which is in the National Identity 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
Vote Courts
Ministry of Justice
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
Vote Sport and Recreation
Ministry for Culture and Heritage
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
Vote Community and Voluntary Sector
Vote Emergency Management
Vote Racing
Department of Internal Affairs
Primary Sector - B.5A Vol.9  
Vote Agriculture and Forestry
Vote Biosecurity
Ministry of Agriculture and Forestry
Vote Fisheries Ministry of Fisheries
Vote Food Safety New Zealand Food Safety Authority
Vote Lands Land Information New Zealand
Social Development and Housing Sector - B.5A Vol.10  
Vote Social Development
Vote Senior Citizens
Vote Veterans' Affairs - Social Development
Vote Youth Development
Ministry of Social 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.

Limits Created by Appropriations#

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

Each appropriation has a defined scope that limits the uses or activities for which the expenses or capital expenditure can be incurred. The scope should be sufficient on its own to establish the nature and extent of the authority to incur expenses or capital expenditure. The wording of the appropriation scope should achieve the balance between being sufficiently precise to act as an effective constraint against non-authorised activities and not so specific that it inadvertently limits activity intended to be authorised.

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 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 normally 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 the Estimates#

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.

The title 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 belonging to 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. Some variations exist for non-standard appropriations, including MCOAs in Parts 2.1 and 2.2 and MYAs in Parts 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.
  • Additionalinformationand 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 Supplementary Estimates and the Information Supporting the Supplementary 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 and capital receipts Flows accounted for as revenue and capital receipts on behalf of the Crown rather than as departmental revenue.
DDA Department-to-department appropriation - as authorised by section 20(2) of the PFA.
Department Generally references to Departments also include an Office of Parliament as provided in section 26E(4) of the PFA.
Expenses Amounts consumed or losses of service potential or future economic benefits, other than those relating to capital withdrawals, in a financial year.  Expenses are 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 - a traditional term for a permanent appropriation, ie, one that is authorised for an indefinite period by legislation other than an Appropriation Act.
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 appropriation - as 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 the one department.

The suite of Budget 2009 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2009. 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.

Sector Overview#

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 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
27 April 2009

Hon Dr Wayne Mapp
Responsible Minister for the Ministry of Research, Science and Technology
22 April 2009

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 (2009/10 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
22 April 2009

Tina Cornelius
Chief Financial Officer
Ministry of Education
22 April 2009
Counter-signed

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 (2009/10 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
22 April 2009

James Kwing
Chief Financial Officer
Education Review Office
22 April 2009
Counter-signed

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 (2009/10 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.

Helen Anderson
Chief Executive for Research, Science and Technology
Ministry of Research, Science and Technology
22 April 2009

Geoff Palmer
Chief Financial Officer for Research, Science and Technology
Ministry of Research, Science and Technology
22 April 2009
Counter-signed

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 (RS&T) is responsible for appropriations in Vote Crown Research Institutes (CRIs) for the 2009/10 financial year totalling $1.074 million. These appropriations will be spent 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 (REANNZ) and New Zealand Venture Investment Fund Ltd (NZVIF) monitored by the Crown Company Monitoring Advisory Unit (CCMAU).

Non-tax revenue of $1.240 million in 2009/10 is the projected dividend flows from CRIs.

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

Part 1.2 - High-Level Objectives of the Vote#

Contribution of Appropriations to Government Priorities and Outcomes#

Contribution of Appropriations to Government Priorities and Outcomes - Part 1.2 HighLevel Objectives of the Vote - Crown Research Institutes
Appropriations Government Priorities Government Outcomes
Crown company monitoring advice to the Minister of RS&T and Minister for Economic Development. 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 export performance.

Summary of Financial Activity#

Summary of Financial Activity - Crown Research Institutes
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  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 957 970 1,028 1,062 1,074 1,074 1,074 - 1,074 1,074 1,074 1,074
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 847 - 134 1,347 764 764 - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

1,804 970 1,162 2,409 1,838 1,838 1,074 - 1,074 1,074 1,074 1,074

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 15,000 18,000 803 887 2,654 2,654 N/A 1,240 1,240 1,610 - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

15,000 18,000 803 887 2,654 2,654 N/A 1,240 1,240 1,610 - -

The variation in output expenditure under Vote CRIs reflects the increasing cost of maintaining a core capability within CCMAU to provide ownership monitoring advice to, and manage issues on behalf of, responsible Ministers. Over time, CCMAU has not only maintained its core monitoring and governance role, but has also undertaken additional work to clarify the owner's expectations and enhance the ways in which both financial and non-financial performance is measured. In addition, CCMAU has provided, and will continue to provide, issue-specific advice affecting CRIs, REANNZ and NZVIF covering a wide range of issues.

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:  CCMAU provides valuable ownership, performance monitoring, and governance advice to Ministers.
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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,074 1,074 1,074
Revenue from Crown 1,052 1,052 1,052
Revenue from Other 22 22 22

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
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quality standards for Analysis and Advice. Achieved. Achieved. Achieved.
Ministerial Satisfaction. Materially met. Materially met. Materially met.

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 2009 Budget.

Estimated and Forecast Net Worth of Entities Owned - Crown Research Institutes
  Balance date 2009
Estimated Net Worth
$000
2010
Forecast Net Worth
$000
Crown Research Institutes:      
AgResearch Ltd 30 June 187,951 189,639
Institute for Environmental Science & Research Ltd 30 June 32,285 35,256
Institute of Geological & Nuclear Sciences Ltd 30 June 22,297 23,885
Industrial Research Ltd 30 June 33,491 35,905
Landcare Research New Zealand Ltd 30 June 26,796 27,930
National Institute of Water & Atmospheric Research Ltd 30 June 90,786 95,100
New Zealand Forest Research Institute Ltd 30 June 25,057 27,419
The New Zealand Institute for Plant & Food Research Ltd 30 June 74,469 78,761
Crown entities:      
New Zealand Venture Investment Fund Ltd 30 June 63,300 67,500
Research and Education Advanced Network of New Zealand Ltd 30 June 18,627 9,903

Conditions on Use of Appropriation

Treasury quality standards for policy

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 - Crown Research Institutes

Dimensions of quality policy advice

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 2009/10 financial year covering the following:

  • a total of $26.145 million for reviews of early childhood education service providers, and schools and other education service providers, and
  • a total of $2.707 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 "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 assuring government that there will be high quality early childhood education services that provide children with the foundations for achieving literacy and numeracy levels, and that the schooling system helps students to develop the knowledge and skills needed to contribute to the Nation's future economic and social success.

The work of ERO supports the Government's themes for education: "every child participates 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", "Maori enjoying success as Maori", and "capable, efficient and responsive to education priorities".

Government Priorities and Outcomes - Links to Appropriations - Education Review Office
Government Priorities Government Outcomes Appropriations
A world leading education system that equips all New Zealanders with the knowledge, skills and values to be successful citizens in the 21st Century.
(Education Priorities for New Zealand, May 2003.)
  • Every child participates 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.
  • Maori enjoying success as Maori.
  • Capable, efficient and responsive to education priorities.
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
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  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 25,244 28,381 28,739 28,560 29,568 29,537 28,852 - 28,852 28,941 28,941 28,941
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 1,505 1,336 987 736 2,062 2,062 1,200 - 1,200 1,200 1,200 1,200
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

26,749 29,717 29,726 29,296 31,630 31,599 30,052 - 30,052 30,141 30,141 30,141

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 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Cessation of adult and community education reviews. Schools and Other Education Service Providers output class. - (137) (137) (137) (137)
Cessation of post-review assistance workshops to schools. Schools and Other Education Service Providers output class. - (207) (207) (207) (207)
Reduction in the number of homeschooling education reviews. Schools and Other Education Service Providers output class. - (283) (283) (283) (283)
Maintaining capability for recruiting and retaining appropriately skilled review officers following increases in teaching salaries approved by the last Government.            
  Early Childhood Education Services
output class.
314 314 314 314 314
  Schools and Other Education Service Providers output class. 535 535 535 535 535
  Quality of Education Reports and Services. 57 57 57 57 57
  Departmental Output Expense.          
Total Initiative   906 279 279 279 279

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 2004/05 to 2005/06 for maintaining capability in the face of increased input costs and for improved review coverage of schools and early childhood services
  • in 2004/05 for maintaining capability for review of early childhood services and kura kaupapa Maori
  • 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 participates 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.
  • Maori enjoying success as Maori.
  • Capable, efficient and responsive to education priorities.
Impact
Enhance the efficiency and effectiveness of the pre-tertiary education system by delivering high quality evaluations and reports that 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 participates 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.
  • Maori enjoying success as Maori.
  • Capable, efficient and responsive to education priorities.
Impact
Add value by undertaking system-wide evaluations to provide 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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

26,696 26,665 26,145
Early Childhood Education Services 9,500 9,500 10,002
Schools and Other Education Service Providers 17,196 17,165 16,143

Revenue from Crown

26,284 26,284 25,733
Early Childhood Education Services 9,384 9,384 9,886
Schools and Other Education Service Providers 16,900 16,900 15,847

Revenue from Other

412 381 412
Early Childhood Education Services 116 116 116
Schools and Other Education Service Providers 296 265 296

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
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Early Childhood Education Services Output Class

     
Number of early childhood education services education reviews. 1,045-1,245 1,045-1,245 1,215-1,375
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. 715-850 715-850 760-890
Number of homeschooling education reviews. 600-640 600-640 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.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Accountability Reviews MCOA (M27) - Education Review Office
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Cessation of adult and community education reviews. 2009/10 - (137) (137) (137) (137)
Cessation of post-review assistance workshops to schools. 2009/10 - (207) (207) (207) (207)
Reduction in the number of homeschooling education reviews. 2009/10 - (283) (283) (283) (283)
Maintaining capability for recruiting and retaining appropriately skilled review officers following increases in teaching salaries approved by the last Government. 2008/09 and 2005/06          
  • Early Childhood Education Services.
         980 314 314 314 314
  • Schools and Other Education Service Providers.
  1,815 535 535 535 535

5

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,872 2,872 2,707
Revenue from Crown 2,391 2,391 2,226
Revenue from Other 481 481 481

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
  2008/09 2009/10
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.

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
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Maintaining capability for recruiting and retaining appropriately skilled review officers following increases in teaching salaries approved by the last Government. 2008/09 and 2005/06 178 57 57 57 57

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
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,051 1,051 900
Intangibles 1,011 1,011 300
Other - - -

Total Appropriation

2,062 2,062 1,200
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,051 1,051 900
Intangibles 1,011 1,011 300
Other - - -

Total Appropriation

2,062 2,062 1,200

Reasons for Change in Appropriation

The decrease in capital expenditure is mainly due to the timing of computer software purchases in 2008/09 carried forward from 2007/08.

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 2009/10 financial year covering the following:

  • A total of just over $1,659 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 just over $395 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 nearly $5,840 million for educational services from schools (including teacher salaries), early childhood education providers, and other education providers.
  • A total of nearly $32 million for capital for Crown entities and schools.
  • A total of nearly $638 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 2009/10 financial year covering the following:

  • A total of just over $15 million for services from the Ministry of Education.
  • A total of nearly $2,003 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 just over $27 million for tertiary scholarships, international education and other grants.
  • A total of nearly $811 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 $36 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 of Education will focus on implementing a set of specific policies and programmes to deliver on six education priority outcomes determined by Government:

Every child participates in high quality early childhood education.

  • Every child needs 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 that 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 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 priority outcomes and appropriations interconnect.

Government Priorities and Outcomes - Links to Appropriations - Education
Government Priorities Government Outcomes Appropriations
Early Childhood Care and Education. Every child participates in high quality early childhood education.
Maori enjoying education success as Maori.
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)
Professional Development and Support (M26)
Supporting Parenting (M26)
The Literacy and Numeracy Crusade. Every child participates in high quality early childhood education.
Every child achieves literacy and numeracy levels that enable their success.
Maori enjoying education success as Maori.
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)
School Property Portfolio Management (M26)
Interventions for Target Student Groups (M26)
Professional Development and Support (M26)
Supporting Parenting (M26)
Curriculum Support (M26)
Education Research Initiatives (M26)
Provision of Information and Advisory Services (M26)
School Transport (M26)
The Ladder of Opportunity. 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.
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)
School Property Portfolio Management (M26)
Interventions for Target Student Groups (M26)
Strategic Leadership in the Tertiary Sector (M68)
Centres of Research Excellence (M68)
Education Research Initiatives (M26)
Managing the Government's Investment in the Tertiary Education Sector (M68)
Ownership Monitoring of Tertiary Education Institutions (M68)
Quality Assurance (M26)
Tertiary and International Advisory Services (M68)
Tertiary Education and Training Policy Advice (M68)
Tertiary Education: Student Achievement Component (M68)
Training for Designated Groups (M68)
Curriculum Support (M26)
Professional Development and Support (M26)
Trades and Skills. 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.
Strategic Leadership of the Sector (M26)
Support and Resources for the Community (M26)
Support and Resources for Education Providers (M26)
Support and Resources for Teachers (M26)
School Property Portfolio Management (M26)
Interventions for Target Student Groups (M26)
Strategic Leadership in the Tertiary Sector (M68)
Tertiary and International Advisory Services (M68)
Tertiary Education and Training Policy Advice (M68)
Tertiary Education: Student Achievement Component (M68)
Training for Designated Groups (M68)
Curriculum Support (M26)
Professional Development Support (M26)
Tertiary Education. 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.
Strategic Leadership in the Tertiary Sector (M68)
Centres of Research Excellence (M68)
Education Research Initiatives (M26)
Managing the Government's Investment in the Tertiary Education Sector (M68)
Ownership Monitoring of Tertiary Education Institutions (M68)
Quality Assurance (M26)
Tertiary and International Advisory Services (M68)
Tertiary Education and Training Policy Advice (M68)
Tertiary Education: Student Achievement Component (M68)
Training for Designated Groups (M68)
Value for Money in the Education Sector. Relevant and efficient tertiary education provision that meets student and industry needs.
The Ministry is capable, efficient and responsive in achieving education priorities.
Curriculum Support (M26)
Education Research Initiatives (M26)
Managing the Government's Investment in the Tertiary Education Sector (M68)
Ownership Monitoring of Tertiary Education Institutions (M68)
Provision of Information and Advisory Services (M26)
Qualifications Support Structures (M26)
Quality Assurance (M26)
Secondary School Examinations (M26)
Tertiary and International Advisory Services (M68)
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)
School Property Portfolio Management (M26)
Interventions for Target Student Groups (M26)

Summary of Financial Activity#

Summary of Financial Activity - Education
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
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 1,928,501 2,148,925 2,267,581 2,995,422 3,967,451 3,960,971 1,674,401 2,398,350 4,072,751 4,069,939 4,074,562 4,071,902
Benefits and Other Unrequited Expenses 62,880 68,764 72,521 67,202 80,336 80,336 N/A 79,249 79,249 72,658 78,759 69,766
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 5,787,705 6,194,316 6,575,567 6,499,984 6,405,755 6,394,912 - 6,650,667 6,650,667 6,707,317 6,700,471 6,726,975
Capital Expenditure 587,608 558,617 548,741 593,745 768,276 763,196 637,683 68,161 705,844 621,559 511,805 494,046
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

8,366,694 8,970,622 9,464,410 10,156,353 11,221,818 11,199,415 2,312,084 9,196,427 11,508,511 11,471,473 11,365,597 11,362,689

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 51,944 56,495 62,782 61,442 71,733 71,733 N/A 64,144 64,144 62,669 63,072 63,331
Capital Receipts 1,400 8,008 9,621 10,773 22,613 22,613 N/A 1,080 1,080 - - -

Total Crown Revenue and Capital Receipts

53,344 64,503 72,403 72,215 94,346 94,346 N/A 65,224 65,224 62,669 63,072 63,331

New Policy Initiatives#

Budget Policy Intiatives - Education
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
21st Century Building Programme.

School Property Portfolio Management (M26)

28,000 38,610 57,406 70,306 70,738
Departmental Output Expense

Primary Education (M26)

- 129 145 247 294
Non-Departmental Other Expense

Secondary Education (M26)

- 129 369 449 450
Non-Departmental Other Expense

Integrated Schools Property (M26)

- 5,636 5,636 5,636 5,636
Non-Departmental Other Expense
Departmental Capital Injection - 166,000 136,950 5,500 -
Departmental Capital Withdrawal (28,000) (5,000) (5,000) (5,000) -

Schools Furniture and Equipment (M26)

- 6,133 5,994 5,048 -
Non-Departmental Capital Expenditure

Property Disposal Incentives Scheme (M26)

- 5,000 5,000 5,000 -
Non-Departmental Capital Expenditure
Additional Funding for Independent Schools.

Primary Education (M26)

- 3,000 6,000 6,000 6,000
Non-Departmental Other Expense

Secondary Education (M26)

- 2,000 4,000 4,000 4,000
Non-Departmental Other Expense
Additional Funding to Fight Truancy on the Front Line.

Secondary Education (M26)

- 4,000 4,000 4,000 4,000
Non-Departmental Other Expense
Additional Funds for the Interim Response Fund for Disruptive Pupils.

Interventions for Target Student Groups (M26)

- 2,000 2,000 2,000 2,000
Departmental Output Expense
Awards for Top-Performing Teachers.

National Study Awards (M26)

- 500 1,000 1,000 1,000
Benefits and Other Unrequited Expenses
Bringing Forward Infrastructure Spending. Departmental Capital Injection 28,000 - - - -
Caretakers, Cleaners and Groundstaff Collective Agreements.

Primary Education (M26)

- 10,318 10,318 10,318 10,318
Non-Departmental Other Expense

Secondary Education (M26)

- 7,122 7,122 7,122 7,122
Non-Departmental Other Expense

Special Needs Support (M26)

- 72 72 72 72
Non-Departmental Other Expense
Early Childhood Education 20 Hours Policy Changes.

Early Childhood Education (M26)

- - 11,650 28,425 29,624
Non-Departmental Other Expense
Expanding Te Kotahitanga.

Professional Development and Support (M26)

- 6,360 4,553 4,500 4,500
Non-Departmental Output Expense
Extension of the Ongoing and Reviewable Resourcing Schemes.

Interventions for Target Student Groups (M26)

- 3,130 6,250 11,250 11,250
Departmental Output Expense

Primary Education (M26)

- 710 1,425 2,565 2,565
Non-Departmental Other Expense

Secondary Education (M26)

- 1,160 2,325 4,185 4,185
Non-Departmental Other Expense
Funding for The Correspondence School to Enrol Alternative Education Students.

Secondary Education (M26)

571 571 571 571 571
Non-Departmental Other Expense
Funding for the Heat, Light and Water Component of the Operations Grant.

Primary Education (M26)

502 875 1,445 1,447 1,446
Non-Departmental Other Expense

Secondary Education (M26)

(1,250) 2,045 816 813 812
Non-Departmental Other Expense

Special Needs Support (M26)

(76) 278 159 159 158
Non-Departmental Other Expense
Increased Operational Funding for Schools.

Curriculum Support (M26)

- 42 83 82 82
Non-Departmental Output Expense

Primary Education (M26)

- 5,995 11,819 11,907 12,081
Non-Departmental Other Expense

Secondary Education (M26)

- 4,300 8,510 8,492 8,517
Non-Departmental Other Expense

Special Needs Support (M26)

- 1,173 2,332 2,335 2,340
Non-Departmental Other Expense
Increasing Medical Training Place.
(See also Vote Health in the Health Sector).

Tertiary Education: Student Achievement Component (M68)

- 932 2,769 4,707 6,745
Non-Departmental Output Expense

Tertiary Education Organisation Component - Capability Fund (M68)

- 108 320 545 780
Non-Departmental Other Expense
Maintaining Current Level of National Certificate of Educational Achievement Moderation.

Quality Assurance (M26)

- 2,720 2,720 2,720 2,720
Non-Departmental Output Expense
Maintaining Existing Level of Funding for School High Health Needs Fund.

Interventions for Target Student Groups (M26)

- 2,671 2,671 2,671 2,671
Departmental Output Expense
National Certificate of Educational Achievement Standards Review - Assessment Resource Development.

Support and Resources for Teachers (M26)

- 2,526 2,731 2,431 350
Departmental Output Expense
Performance Based Research Fund.
(See also Vote Research, Science and Technology in the Education and Science Sector).

Tertiary Education Organisation Component - Performance Based Research Fund (M68)

- 27 4,283 7,083 7,083
Non-Departmental Other Expense
Promote Greater Enrolment of International Students.

Tertiary and International Advisory Services (M68)

- 2,000 - - -
Non-Departmental Output Expense
Reduction of the International Student Levy from 2010. Overseas Students' Fees - 1,800 3,600 3,600 3,600
Crown Revenue
Reversing Unfunded Budget 2008 Commitments for Economic Transformation - Innovation.
(See also Vote Research, Science and Technology in the Education and Science Sector, Vote Social Development in the Social Development and Housing Sector, Vote Revenue in the Finance and Government Administration Sector and Vote Economic Development in the Economic Development and Infrastructure Sector).
           
  • Amend the Consumer Price Index Adjustments to Tertiary Education Funding.

Training for Designated Groups (M68)

- (1,500) (5,700) (7,600) (7,600)
Non-Departmental Output Expense

Tertiary Education: Student Achievement Component (M68)

- (4,400) (27,500) (46,200) (46,200)
Non-Departmental Output Expense

Tertiary Education Organisation Component - Capability Fund (M68)

- (700) (4,700) (8,000) (8,000)
Non-Departmental Other Expense

Tertiary Education Grants and Other Funding (M68)

- - (100) (200) (200)
Non-Departmental Other Expense

Adult and Community Education (M68)

- (400) (1,000) (1,400) (1,400)
Non-Departmental Other Expense

Tertiary Education Organisation Component - Performance-Based Research Fund (M68)

- (700) (4,100) (6,900) (6,900)
Non-Departmental Other Expense
  • Cease Funding for Skill Enhancement from 2010.

Training for Designated Groups (M68)

- (2,154) (4,308) (4,308) (4,308)
Non-Departmental Output Expense
  • Close off Top Achiever Doctoral Scholarships.

Tertiary Scholarships (M68)

- (2,776) (5,308) (7,852) (10,000)
Benefits and Other Unrequited Expenses
  • Halve the Encouraging and Supporting Innovation fund from 2010.

Tertiary Education Organisation Component - Capability Fund (M68)

- (4,000) (8,000) (8,000) (8,000)
Non-Departmental Other Expense
  • Reduce Adult and Community Education Funding for Schools and Community Groups from 2010.

Adult and Community Education (M68)

- (4,778) (8,209) - -
Non-Departmental Other Expense
  • Reduce the Growth in Funding for Literacy, Language and Numeracy Programmes from 2009/10.

Training for Designated Groups (M68)

- - (1,600) (1,600) (2,600)
Non-Departmental Output Expense

Tertiary Education Organisation Component - Capability Fund (M68)

- - (2,000) - -
Non-Departmental Other Expense

Adult and Community Education (M68)

- (7,000) (16,400) (21,400) (25,100)
Non-Departmental Other Expense

Tertiary Scholarships (M68)

- (500) (1,780) (1,980) (1,980)
Benefits and Other Unrequited Expenses

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

- (1,100) (1,950) (2,300) (5,010)
Non-Departmental Output Expense
  • Reduce the Industry Training Organisation Strategic Leadership Fund from 2011.

Tertiary Education Organisation Component - Capability Fund (M68)

- - (1,750) (3,500) (3,500)
Non-Departmental Other Expense
  • Reduce the Tertiary Education Commission's Operating Funding Through Streamlined Services.

Ownership Monitoring of Tertiary Education Institutions (M68)

- (2,408) (1,908) (1,908) (1,908)
Non-Departmental Output Expense

Tertiary Education and Training Policy Advice (M68)

- (2,284) (1,884) (1,884) (1,884)
Non-Departmental Output Expense

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

- (4,608) (3,583) (3,583) (3,583)
Non-Departmental Output Expense
  • Remove Priorities for Focus Funding for Universities from 2011.

Tertiary Education Organisation Component - Capability Fund (M68)

- - (5,000) (10,000) (10,000)
Non-Departmental Other Expense
  • Remove Specific Small Funds to Reduce Administration Costs.

Training for Designated Groups (M68)

- (605) (1,211) (1,211) (1,211)
Non-Departmental Output Expense

Centres of Research Excellence (M68)

- (667) (1,333) (1,333) (1,333)
Non-Departmental Output Expense

Ter