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 FilesCover, 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#
- Sector Overview Statement
- Ministerial Statements of Responsibility
- Chief Executive Statements of Responsibility
Performance Information for Appropriations in Each Vote#
- Vote Customs
- Vote Defence
- Vote Defence Force
- Vote Foreign Affairs and Trade
- Vote Official Development Assistance
- Vote Veterans' Affairs - Defence Force
Statement of Forecast Service Performance of Departments#
Forecast Financial Statements of Departments#
- Statement of Common Accounting Policies
- New Zealand Customs Service
- Ministry of Defence
- New Zealand Defence Force
- Ministry of Foreign Affairs and Trade
Statements of Intent of Departments (separately produced but forming part of this volume)#
- New Zealand Customs Service [Treasury update July 2024: External link no longer active]
- Ministry of Defence [Treasury update July 2024: External link no longer active]
- New Zealand Defence Force
- Ministry of Foreign Affairs and Trade
Strategic Evaluation and Advice (M34)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 9,504 | 9,109 | 9,577 |
Revenue from Crown | 9,427 | 9,427 | 9,554 |
Revenue from Other | 77 | 77 | 23 |
Reasons for Change in Appropriation#
This appropriation is increasing in order to effectively manage and monitor the increasing size and number of development assistance programmes arising from increased ODA.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Indicators of the Quantity of Output |
|||
Review or development of programme strategies. | At least 4 | At least 4 | At least 4 |
Appraisal of all necessary proposals/design studies for programmes. | At least 40 | At least 40 | At least 40 |
New (or substantially revised) sectoral or thematic policies or strategies. | At least 2 | At least 2 | At least 2 |
Evaluations or activity reviews. | At least 20 | At least 20 | At least 20 |
Indicators of the Quality of Output |
|||
Compliance with stated MFAT-wide quality and timeliness targets of policy advice. | Expectations met | Expectations met | Expectations met |
Reviews and evaluations comply with good practice guidelines. | 100% | 100% | 100% |
All demand for ministerial correspondence, parliamentary questions and ministerial and Cabinet submissions met. | 100% (with numbers reported) | 100% | 100% (with numbers reported) |
All media inquiries met. | 100% (with numbers reported) | 100% | 100% (with numbers reported) |
Ministerial servicing products meet standards. | 100% | 100% | 100% |
Programme strategies that are up to date as per the schedule of reviews and revisions. | 100% (with numbers reported) | 100% | 100% (with numbers reported) |
Programme strategy reviews completed this year were agreed with partners and meet guidelines and standards. | 100% (with numbers reported) | 100% | 100% (with numbers reported) |
Proposals and design studies meet guidelines and standards. | 100% (with numbers reported) | 100% | 100% (with numbers reported) |
Sectoral and thematic policies and strategies meet guidelines, and NZAID advice stands up to public scrutiny. | 100% (with numbers reported; and criticisms documented and responded to) | 100% | 100% (with numbers reported; and criticisms documented and responded to) |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action | |
Quality | The purpose of advice will be clearly stated; its assumptions made explicit; its arguments logical; all material facts will be included and accurate; a range of options will be presented and assessed for benefits; consultation will be undertaken; implementation issues will be considered and professionally presented. Representation, negotiation and implementation will effectively convey and advance the Government's policies and views. Quality assurance measures will be implemented through managers directing the completion of work, maintaining approval processes, ensuring deadlines are met, and controlling quality either directly or through delegation procedures. This will be supported by an individual performance management system and senior management oversight of unit performance through internal operational planning and evaluation. Confirmation of Ministerial satisfaction will be obtained twice a year. Responses to ministerial correspondence, parliamentary questions, and requests under the Official Information Act will be well presented. |
Quantity | Management of relationships with countries and international and regional organisations, and of issues arising, will be undertaken as agreed with the Minister. Priorities for each issue and relationship will be translated into actual work programmes for each unit in the Ministry incorporating goals, action steps and impact measures. Briefings and reports on external events and issues will be provided for Ministers, Members of Parliament, Select Committees, and other organisations and groupings as appropriate. Responses will be prepared for all ministerial correspondence, parliamentary questions and requests under the Official Information Act. |
Timeliness | Advice will be given, and action taken, in a prompt and appropriate manner. Substantive responses to Ministerial correspondence will be prepared within 14 days, unless otherwise agreed. Responses to parliamentary questions and Cabinet papers will be prepared in time for the Minister to consider and review the response prior to the due date. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Changes to New Zealand's ODA funding, arising from savings identified from the baseline review and the move to basing funding on outcomes rather than a percentage of GNI. | 2009/10 | - | (1,679) | (1,674) | (1,443) | (1,130) |
Funding to enable New Zealand to respond to the Indian Ocean Tsunami. | 2004/05 | 44 | - | - | - | - |
Increase to New Zealand's Official Development Programme. | 2004/05 | 4,789 | 6,639 | 6,746 | 6,746 | 6,746 |
Part 5 - Details and Expected Results for Other Expenses#
Part 5.2 - Non-Departmental Other Expenses#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Objective Development partners have reduced poverty through sustainable development. To be measured by:
Intermediate Outcomes Development assistance programmes and activities that are relevant, effective, efficient, and deliver positive sustainable impacts. End Outcome A more secure, equitable and prosperous world. |
Global Development Assistance International Agency Funding New Zealand Voluntary Agency Grants Pacific Development Assistance |
Global Development Assistance (M34)
Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations | Appropriation | $000 |
---|---|---|
Non-Departmental Other Expenses |
||
Global Development Assistance (M34) (M34)This appropriation is limited to provision of assistance for development activities for non Pacific Island countries including Asian, African, Latin American, Caribbean, and Middle Eastern countries. The assistance will be provided to development organisations, partner countries and through other delivery mechanisms and be used to implement activities that include humanitarian assistance; design, management, implementation and evaluation of those partner-led activities. The assistance is to be consistent with Ministers' requirement for NZAID to work with development partners to ensure aid expenditure is targeted as close as possible to need. Commences: 1 July 2009 Expires: 30 June 2012 |
Original Appropriation | 312,000 |
Adjustments for 2007/08 | - | |
Adjustments to 2008/09 | - | |
Adjusted Appropriation | 312,000 | |
Actual to 2007/08 Year End | - | |
Estimated Actual for 2008/09 | - | |
Estimated Actual for 2009/10 | 102,000 | |
Estimated Appropriation Remaining | 210,000 |
Reasons for Change in Appropriation
This is a new multi-year appropriation taking the place of a multi-year appropriation that expired on 30 June 2009.
Expected Results
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
|
Progress towards outcomes identified in NZAID Programme Strategies. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Further progress |
Summary evaluative results for completing Crown-funded activities. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Improved information and demonstrated results |
Example impacts of Crown-funded activities. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated impacts |
Example impacts from third parties funded by NZAID. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated impacts |
Effective implementation of management priorities and Government policy as set out in the Statement of Intent. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Implementation of priorities and policies |
Compliance with the internationally-agreed principles of aid effectiveness and good humanitarian donorship. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Improved performance against all indicators |
Review and evaluation findings relating to programme and activity cost-effectiveness. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated cost-effectiveness |
Conditions on Use of Appropriation
Reference | Conditions |
---|---|
Provision of assistance | Evaluations show that programmes are realistic, effective and appropriately prioritised; development is aligned to partner country priorities and is delivered in ways that grow partner country capability and ownership; NZAID has well-aligned policies, strategies, culture, processes and resources to support its programmes. New central focus on sustainable economic development. Acknowledgement and pursuance of the Millennium Development Goals (MDGs). |
Current and Past Policy Initiatives
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 |
---|---|---|---|---|---|---|
Changes to New Zealand's ODA funding, arising from savings identified from the baseline review and the move to basing funding on outcomes rather than a percentage of GNI. | 2009/10 | - | 1,596 | (4,465) | (2,465) | (465) |
Increase to New Zealand's Official Development Programme. | 2006/07 | - | 30,208 | 38,269 | 38,269 | 38,269 |
International Agency Funding (M34)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 92,568 | 92,568 | 94,500 |
Reasons for Change in Appropriation#
This appropriation is decreasing as a result of decisions arising from the baseline review.
Expected Results#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
|
Progress towards outcomes identified in NZAID Programme Strategies. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Further progress |
Summary evaluative results for completing Crown-funded activities. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Improved information and demonstrated results |
Example impacts of Crown-funded activities. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated impacts |
Example impacts from third parties funded by NZAID. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated impacts |
Effective implementation of management priorities and Government policy as set out in the Statement of Intent. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Implementation of priorities and policies |
Compliance with the internationally-agreed principles of aid effectiveness and good humanitarian donorship. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Improved performance against all indicators |
Review and evaluation findings relating to programme and activity cost-effectiveness. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated cost-effectiveness |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Contributions and subscriptions to international organisations including the UN and its associated institutions, the World Bank, the Asian Development Bank, the International Committee of the Red Cross and Pacific regional agencies. | Cabinet approval |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Changes to New Zealand's ODA funding, arising from savings identified from the baseline review and the move to basing funding on outcomes rather than a percentage of GNI. | 2009/10 | - | (4,918) | (16,418) | (14,418) | (14,418) |
Increase to New Zealand's Official Development Programme. | 2004/05 | 30,600 | 47,600 | 61,600 | 61,600 | 61,600 |
New Zealand Voluntary Agency Grants (M34)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 32,826 | 32,826 | 32,826 |
Expected Results#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
|
Progress towards outcomes identified in NZAID Programme Strategies. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Further progress |
Summary evaluative results for completing Crown-funded activities. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Improved information and demonstrated results |
Example impacts of Crown-funded activities. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated impacts |
Example impacts from third parties funded by NZAID. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated impacts |
Effective implementation of management priorities and Government policy as set out in the Statement of Intent. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Implementation of priorities and policies |
Compliance with the internationally-agreed principles of aid effectiveness and good humanitarian donorship. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Improved performance against all indicators |
Review and evaluation findings relating to programme and activity cost-effectiveness. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated cost-effectiveness |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Contributions to NGOs | Analysis indicates that contributions are effectively utilised for the purpose for which they are provided. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Changes to New Zealand's ODA funding, arising from savings identified from the baseline review and the move to basing funding on outcomes rather than a percentage of GNI. | 2009/10 | - | (4,000) | (7,000) | (7,000) | (7,000) |
Transfer of funding for Himalayan Trust. | 2006/07 | 290 | 290 | 290 | 290 | 290 |
Increase to New Zealand's Official Development Programme. | 2005/06 | 13,113 | 17,113 | 20,113 | 20,113 | 20,113 |
Pacific Development Assistance (M34)#
Scope of Appropriation and Expenses#
Type, Title, Scope and Period of Appropriations | Appropriation | $000 |
---|---|---|
Non-Departmental Other Expenses |
||
Pacific Development Assistance (M34) (M34)This appropriation is limited to provision of assistance for development activities for Pacific Island countries. The assistance will be provided to development organisations, partner countries and through other delivery mechanisms; and be used to implement activities that include humanitarian assistance; design, management, implementation and evaluation of those partner-led activities. The assistance is to be consistent with Ministers' requirement for NZAID to work with development partners to ensure aid expenditure is targeted as close as possible to need. Commences: 1 July 2009 Expires: 30 June 2012 |
Original Appropriation | 755,801 |
Adjustments for 2007/08 | - | |
Adjustments to 2008/09 | - | |
Adjusted Appropriation | 755,801 | |
Actual to 2007/08 Year End | - | |
Estimated Actual for 2008/09 | - | |
Estimated Actual for 2009/10 | 231,978 | |
Estimated Appropriation Remaining | 523,823 |
Reasons for Change in Appropriation#
This is a new multi-year appropriation taking the place of a multi-year appropriation that expired on 30 June 2009.
Expected Results#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
|
Progress towards outcomes identified in NZAID Programme Strategies. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Further progress |
Summary evaluative results for completing Crown-funded activities. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Improved information and demonstrated results |
Example impacts of Crown-funded activities. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated impacts |
Example impacts from third parties funded by NZAID. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated impacts |
Effective implementation of management priorities and Government policy as set out in the Statement of Intent. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Implementation of priorities and policies |
Compliance with the internationally-agreed principles of aid effectiveness and good humanitarian donorship. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Improved performance against all indicators |
Review and evaluation findings relating to programme and activity cost-effectiveness. | N/A | See Strategic Outcome IV in the MFAT Statement of Intent | Demonstrated cost-effectiveness |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Provision of assistance | Evaluations show that programmes are realistic, effective and appropriately prioritised; development is aligned to partner country priorities and is delivered in ways that grow partner country capability and ownership; NZAID has well-aligned policies, strategies, culture, processes and resources to support its programmes. New central focus on sustainable economic development. Acknowledgement and pursuance of the Millennium Development Goals (MDGs). |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Changes to New Zealand's ODA funding, arising from savings identified from the baseline review and the move to basing funding on outcomes rather than a percentage of GNI. | 2009/10 | - | 10,726 | (53,363) | (33,138) | 13,612 |
Increase to New Zealand's Official Development Programme. | 2006/07 | - | 106,845 | 150,325 | 150,325 | 150,325 |
Reporting Mechanisms#
Appropriation | Reporting Mechanism |
---|---|
Global Development Assistance | Not required |
International Agency Funding | Not required |
New Zealand Voluntary Agency Grants | Not required |
Pacific Development Assistance | Not required |
The above table indicates the mechanisms to be used for reporting actual performance for each non-departmental other expenses appropriation.
Performance Information for Appropriations Vote Veterans' Affairs - Defence Force#
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Veterans' Affairs (M75)
ADMINISTERING DEPARTMENT: New Zealand Defence Force
MINISTER RESPONSIBLE FOR NEW ZEALAND DEFENCE FORCE: Minister of Defence
Part 1 - Summary of the Vote#
Part 1.1 - Overview of the Vote
The Minister of Veterans Affairs is responsible for the appropriations in the Vote for the 2009/10 financial year covering the following:
- A total of over $2 million for the provision of policy advice, the provision of administrative services to relevant boards and committees, the coordination of commemorations and the administration of contracts for work carried out in Services Cemeteries.
- A total of over $5 million for the assessment and review of entitlements and benefits (War Disablement Pension, Surviving Spouse Pension and burial in Services Cemeteries), the provision and installation of ex-service memorials for eligible veterans and the provision of case management for veterans and their families.
- A total of under $1 million for the development and maintenance of Services Cemeteries.
- A total of under $4 million for the provision of services to veterans and their families.
- A total of over $171 million for benefits and medical treatment to veterans and their families.
Details of these appropriations are set out in Parts 2-6 below.
Part 1.2 - High-Level Objectives of the Vote#
Government Priorities and Outcomes - Links to Appropriations#
Appropriations | Government Priorities | Government Outcomes |
---|---|---|
Departmental Output Appropriations: Policy and Administration Services and Payments to Veterans Non-Departmental Output Appropriations: Development and Maintenance of Services Cemeteries Support for Veterans and Their Families Benefits and Other Unrequited Expenses: Medical Treatment War Disablement Pensions Non-Departmental Other Appropriations: Ex-Gratia Payments Debt Write-Down for Benefits and Other Unrequited Expenses |
The Government's underpinning policy related to veterans is 'Respecting Veterans, Honouring Service'. This is substantiated by the broader principles of:
|
|
Part 1.3 - Trends in the Vote#
Summary of Financial Activity#
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 | 4,474 | 4,227 | 6,604 | 7,290 | 10,105 | 10,105 | 8,377 | 2,623 | 11,000 | 10,150 | 10,150 | 9,900 |
Benefits and Other Unrequited Expenses | - | - | - | - | 166,581 | 164,921 | N/A | 171,139 | 171,139 | 177,799 | 184,866 | 189,735 |
Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Other Expenses | - | - | 8,135 | 1,187 | 1,050 | 1,050 | - | 2,250 | 2,250 | 1,950 | 1,650 | 1,550 |
Capital Expenditure | 225 | 2,500 | 920 | - | - | - | - | - | - | - | - | - |
Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
Total Appropriations |
4,699 | 6,727 | 15,659 | 8,477 | 177,736 | 176,076 | 8,377 | 176,012 | 184,389 | 189,899 | 196,666 | 201,185 |
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#
Policy Initiative | Appropriation | 2008/09 Budgeted $000 |
2009/10 Budget $000 |
2010/11 Estimated $000 |
2011/12 Estimated $000 |
2012/13 Estimated $000 |
---|---|---|---|---|---|---|
Additional Funding for the three Veterans' Homes: Montecillo, Rannerdale and Ranfurly. | Support for Veterans and their Families. (Non-Departmental Output Expense). |
- | 600 | - | - | - |
Funding for yearly medical checks for Vietnam Veterans. | Ex-Gratia Payments and Comprehensive Medical Assessments for Vietnam Veterans. (Non-Departmental Output Expense). |
- | 1000 | 1000 | 1000 | 1000 |
Policy and Administration. (Departmental Output Expense). |
- | 200 | 200 | 200 | 200 | |
Ex-gratia payments to Vietnam Veterans. | Support for Veterans and their Families. Ex-Gratia Payments and Comprehensive Medical Assessments for Vietnam Veterans. (Non-Departmental Other Expense). |
- | 1,000 | 700 | 400 | 300 |
Analysis of Significant Trends#
Total Vote: All Appropriations
The appropriations in Vote Veterans' Affairs - Defence Force show the changes discussed briefly below.
The following changes are noted:
- The total increase in funding of over $2 million between 2005/06 and 2006/07 was primarily to cover the 2006 Year of the Veteran activities.
- The total increase in funding of over $3 million in 2006/07 and 2007/08 to implement the Memorandum of Understanding (MOU) signed by the Crown and the Ex-Vietnam Services Association and the Royal New Zealand Returned and Services' Association (RNZRSA) regarding the concerns of Vietnam Veterans. This was primarily made up from one-off costs: $1.680 million for provision of ex-gratia payments to Vietnam Veterans and/or members of their family with accepted conditions and one-off medical assessments; a grant of $120,000 to the Vietnam Veterans and their Families Endowment Trust to cover administration costs and payments to some veterans and their family members until the time the trust starts to generate its own income, and an additional grant of $180,000 to the Vietnam Veterans and their Families Endowment Trust to cover payments to some veterans and their family members until the time that the trust starts to generate its own income; costs associated with the 2006 Year of the Veteran activities; one-off funding to cover participation in commemorations and arrangements covered by the Memorandum of Understanding (MOU) signed by the Crown and the Ex-Vietnam Services Association and the Royal New Zealand Returned and Services' Association (RNZRSA) regarding the concerns of Vietnam Veterans.
Comparison with 2008/09 and 2009/10
Departmental Output Expenses
Funding has increased in the 2009/10 year as compared to 2008/09. This is primarily due to the reorganisation of Veterans' Affairs New Zealand, with increased funding reflecting the increased size and scope of Veterans' Affairs as a result of this change. The funding increases include:
- An increase of $3 million in 2008/09 for the for the assessment and review of entitlements and benefits. This is primarily due to the reorganisation of Veterans' Affairs New Zealand, with the New Zealand Defence Force assuming responsibility for the payment of veterans' entitlements.
Non-Departmental Output Expenses
Funding has increased in the 2009/10 year as compared to 2008/09. This is primarily due to the increased need and demand for services from the veteran community. The funding increase includes:
- An increase of $300,000 for the provision of support for Veterans and their Families.
Benefits and Other Unrequited Expenses
This increase to appropriations is primarily due to the reorganisation of Veterans' Affairs New Zealand, with the New Zealand Defence Force assuming responsibility for the payment of veterans' entitlements in 2008/09. These appropriations will increase by $4.558 million in 2009/10 to a total of over $171 million for benefits and medical treatment to veterans and their families.
Non-Departmental Other Expenses
Funding has increased in the 2009/10 year as compared to 2008/09. This is primarily due to the Government policy decision to provide Vietnam veterans with an annual comprehensive medical assessment. The total funding increase is for $1.200 million.
Outyears: 2010/11 - 2012/13
There are no significant forecast changes for the outyears 2010/11 - 2012/13.
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Veterans are acknowledged and recognised for their service and sacrifice and the community is aware of the role veterans have played and continue to play in developing New Zealand as a nation. | Policy and Administration |
Services and Payments to Veterans | |
Working in partnership with the NZDF, the impacts of service on eligible veterans and their dependants are monitored and they have information about and access to services and supports that promote wellbeing. | Policy and Administration |
Services and Payments to Veterans | |
The veterans' perspective is considered as part of government decision-making on issues that impact on their lives. | Policy and Administration |
Policy and Administration (M75)
Scope of Appropriation
Expenses and Revenue
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 2,269 | 2,269 | 2,400 |
Revenue from Crown | 2,269 | 2,269 | 2,400 |
Revenue from Other | - | - | - |
Reasons for Change in Appropriation
This appropriation will increase by $131,000 for 2009/10. The increase mainly relates to the implementation of the Government's policy to provide Vietnam Veterans with an annual comprehensive medical assessment.
Output Performance Measures and Standards
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Provide policy advice to the Minister of Veterans' Affairs on veterans' entitlements, care and recognition |
|||
Replies to requests within 20 days of receipt of requests, if not otherwise specified. | 95% | 95% | 95% |
The drafts of policy papers presented to the Minister will be accepted on their first presentation. | 95% | 95% | 95% |
Policy papers will meet defined characteristics of quality advice (purpose, logic, accuracy, options, consultation, practicality and presentation). | meet | meet | meet |
Responses to submissions, other than policy papers, accepted without amendment. | 90% | 90% | 90% |
Provide Ministerial Servicing and Support |
|||
Replies to requests within 20 days of receipt of requests, if not otherwise specified. | 95% | 95% | 95% |
Responses accepted without amendment. | 95% | 95% | 95% |
Provide Administration for War Pensions Appeal Board and War Pensions Advisory Board |
|||
Arrangements and actions meet Boards requirements. | meet | meet | meet |
Actions defined by Boards will be completed within 20 working days after decisions made, unless otherwise specified. | 95% | 95% | 95% |
Management of Rehabilitation Loan Scheme |
|||
Provide information to MSD in timely manner to enable them to make payments. | 100% | 100% | 100% |
Administration of maintenance agreements and contracts for service relating to the maintenance and development of Services Cemeteries |
|||
Contracts to be current, legally correct and clearly specify maintenance and development requirements. | meet | meet | meet |
No breaches of contract by Veterans' Affairs New Zealand. | 100% | 100% | 100% |
Breaches of contracts by contractors will be managed as per the conditions in the contract. | meet | meet | meet |
Services Cemeteries will have maintenance agreement specifying the maintenance standards in place. | 100% | 100% | 100% |
Quality Audits of Services Cemeteries |
|||
Specifications outlined in contracts for service have been met. | 100% | 100% | 100% |
Coordinate New Zealand's participation in the commemoration of significant military anniversaries |
|||
Participation to be delivered in accordance with agreed parameters and budget. | meet | meet | meet |
Conditions on Use of Appropriation
Reference | Conditions |
---|---|
Quality Characteristics | Description |
Purpose | The aims of the papers are clearly stated and answer the questions the Minister has raised. |
Logic | The assumptions behind the advice are explicit, the argument is logical and supported by facts. |
Accuracy | The facts in the papers are accurate and all material facts have been included. |
Options | An adequate range of options has been presented and each is assessed for benefits, costs and consequences to the Government and the community. |
Consultation | Evidence of adequate consultation with interested parties and possible objections to proposals have been identified. |
Practicality | The problems of implementation, technical feasibility, timing and consistency with other policies have been considered. |
Presentation | The format meets Cabinet Office requirement, the material is effectively and concisely summarised, has short sentences in plain English, and is free from spelling and grammatical errors. |
Current and Past Policy Initiatives
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 |
---|---|---|---|---|---|---|
Commemoration of Anzac Day at Gallipoli | 2005/06 | 746 | 820 | 897 | 897 | 897 |
NZ Government attendance at the commemoration of the 90th anniversary of Passchendaele | 2006/07 | 196 | - | - | - | - |
Funding for yearly checks for Vietnam Veterans | 2009/10 | - | 200 | 200 | 200 | 200 |
Services and Payments to Veterans (M75)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 5,513 | 5,513 | 5,977 |
Revenue from Crown | 5,036 | 5,036 | 5,500 |
Revenue from Other | 477 | 477 | 477 |
Reasons for Change in Appropriation#
This appropriation will increase by $464,000 for 2009/10. This increase is due to the relocation of the administration of the War Disablement Pension from the Ministry of Social Development to the New Zealand Defence Force.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Assess and Review Entitlements to War Disablement Pension | |||
Assessments and Reviews will be conducted against extant policy. | meet | meet | meet |
War Disablement Pension Claims will be resolved within 2 months of receipt where all the required documentation has been provided with the application. | - | - | 85% |
Reviews and re-openings will be completed within 3 months of receipt by the National Review Officer. | 95% | 95% | 95% |
Reviews will be completed within 3 months of receipt by the Secretary for War Pensions. | 95% | 95% | 95% |
Appeals will be heard within 3 months of receipt by the War Pensions Appeal Board. | 95% | 95% | 95% |
Provide Ex-Service Memorial Plaques and Headstones for Eligible Veterans | |||
Ex-service memorials will be factually correct, meet technical specifications as contracted and be correctly installed. | 99.5% | 99.5% | 99.5% |
Decisions on eligibility for an ex-service memorials will be made within legislative parameters. | meet | meet | meet |
Where correct documentation has been supplied with the application an ex-Service memorials will be manufactured and installed within 4 months of receipt of the order. | 75% | 75% | 75% |
Provide Case Management | |||
New referrals to case management will be assigned a case manager within 5 working days. | 95% | 95% | 95% |
Active cases will be contacted every 4 months (in the range 1 to 4 months) to monitor progress and effectiveness of the interventions put in place. | 100% | 100% | 100% |
The intervention packages that are put in place by case management will meet the identified need of the veteran. | - | - | 85% |
Deal with Enquiries | - | - | |
Calls will be resolved on first contact. | - | - | 80% |
Calls will be resolved within 5 working days. | - | - | 100% |
The resolution provided by the enquiry line will meet the identified need of the caller. | - | - | 95% |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Extant Policy | Policy complies with the War Pensions Act 1954. |
Technical specifications for ex-service memorials | Ex-service memorials must meet specified size, material composition and finish as per the relevant contract specifications. |
Eligibility for ex-service memorials | Decision on eligibility for ex-service memorials will be made on the basis of Section 15 of the Burial and Cremation Act 1964. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
MOU signed by the Crown with the Ex-Vietnam Services Association and the RNZRSA regarding the concerns of Vietnam Veterans. | 2006/07 | 610 | 202 | 202 | 202 | 202 |
Part 2.2 - Non-Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives#
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Veterans are acknowledged and recognised for their service and sacrifice and the community is aware of the role veterans have played and continue to play in developing New Zealand as a nation. | Development and Maintenance of Services Cemeteries |
Support for Veterans and their Families | |
Working in partnership with the NZDF, the impacts of service on eligible veterans and their dependants are monitored and they have information about and access to services and supports that promote wellbeing. | Support for Veterans and their Families |
Development and Maintenance of Services Cemeteries (M75)#
Scope of Appropriation
Expenses
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 746 | 746 | 746 |
Output Performance Measures and Standards
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Develop and Maintain Services Cemeteries |
|||
Works carried out under contract will comply with agreed contract standards. | 90% | 90% | 90% |
Services Cemeteries will be maintained to specified standards. | 100% | 100% | 100% |
Works in Services Cemeteries will be managed in accordance with an agreed annual programme. | meet | meet | meet |
Service Cemeteries will be maintained to the satisfaction of Local Authorities, the RSA and veterans' representative organisations. | meet | meet | meet |
Conditions on Use of Appropriation
Reference | Conditions |
---|---|
Standards for Services Cemeteries | These define the maintenance standards for service cemeteries that Local Authorities need to meet in order to receive maintenance grants. |
Works in Services Cemeteries | All work funded under this appropriation is contracted with specifications around the work to be undertaken. |
Current and Past Policy Initiatives
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 |
---|---|---|---|---|---|---|
Additional annual maintenance grant paid for the routine upkeep of Services Cemeteries | 2003/04 | 512 | 512 | 512 | 512 | 512 |
Support for Veterans and Their Families (M75)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 1,577 | 1,577 | 1,877 |
Reasons for Change in Appropriation#
This appropriation will increase by $300,000 for 2009/10. This increase mainly reflects the additional support that will be provided to the Veterans' Homes in 2009/10.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Support for Veterans and Their Families |
|||
The services provided will be to the satisfaction of the veteran and/or the veteran's family. | meet | meet | meet |
Works carried out under contract will comply with agreed contract standards. | 95% | 95% | 95% |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Services | All interventions are contracted with specifications around the work to be undertaken. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Additional services to veterans and their families. | 2005/06 | 475 | 475 | 475 | 475 | 475 |
A grant to the RNZRSA to support the RNZRSA in furthering its mission. | 2008/09 | 250 | 250 | 250 | 250 | - |
Additional Funding for the three Veterans' Homes. | 2009/10 | - | 600 | - | - | - |
Part 3 - Details for Benefits and Other Unrequited Expenses#
Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Working in partnership with NZDF, the impacts of service on eligible veterans and their dependants are monitored and they have information about and access to services and supports that promote wellbeing. | Medical Treatment Support for Veterans and their Families War Disablement Pensions |
Interest Concessions Land and Buildings (M75)
Scope of Appropriation
Expenses
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 46 | 36 | 10 |
Reasons for Change in Appropriation
This appropriation will decrease by $36,000 due to the lower current market rates forecast for 2009/10, and due to a decrease in the value of the outstanding loans.
Medical Treatment (M75)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 22,476 | 21,578 | 21,309 |
Reasons for Change in Appropriation#
The 2008/09 budget includes an increase of $898,000 to reduce the likelihood of an overspend. This increase is not included in 2009/10, accounting for the decrease in expenditure between 2008/09 and 2009/10.
War Disablement Pensions (M75)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 144,059 | 143,307 | 149,820 |
Conditions on Use of Appropriation#
This increase is owing to indexation of payment rates and the increase in average disability levels more than offsetting the fall in the number of recipients.
Part 5 - Details and Expected Results for Other Expenses#
Part 5.2 - Non-Departmental Other Expenses#
Debt Write-down for Benefits and Other Unrequited Expenses (BOUE) (M75)
Scope of Appropriation
Expenses
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 250 | 250 | 250 |
Ex-Gratia Payments and Comprehensive Medical Assessments for Vietnam Veterans (M75)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 800 | 800 | 2,000 |
Reasons for Change in Appropriation#
This appropriation will increase by $1.200 million for 2009/10. The increase mainly relates to the Government policy decision to provide Vietnam Veterans with an annual comprehensive medical assessment.
Expected Results#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
|
Performance Measures | |||
Provision of annual medical checks for Vietnam Veterans. | - | - | Up to 2000 |
Number of ex-gratia payments likely to be made to Vietnam Veterans and/or members of their family with accepted conditions. | 39 | 78 | Up to 13 |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Accepted Conditions | A condition on the Institute of Medicine of the United States National Academy of Sciences 'Sufficient Evidence of Association' list, or one of five conditions accepted as being related to parental dioxin exposure. |
Comprehensive Medical Assessments | An assessment of the impact of service and exposure to a toxic environment on Vietnam Veterans. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
MOU signed by the Crown with the Ex-Vietnam Services Association and the RNZRSA regarding the concerns of Vietnam Veterans. | 2006/07 | 800 | 1,000 | 700 | 400 | 300 |
Annual comprehensive medical assessments for Vietnam Veterans. | 2009/10 | - | 1,000 | 1,000 | 1,000 | 1,000 |
Statements of Forecast Service Performance#
The Statements of Forecast Service Performance of departments included in the External 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 External Sector.
Department | Composition of Statement of Forecast Service Performance |
---|---|
New Zealand Customs Service | The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Customs. |
Ministry of Defence | The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Defence. |
New Zealand Defence Force |
The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in:
|
Ministry of Foreign Affairs and Trade |
The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in:
|
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 New Zealand Customs Service#
Statement of Forecast Comprehensive Income for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | |||
---|---|---|---|---|---|
Note | Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Income |
|||||
Crown | 84,216 | 82,349 | 82,474 | 82,300 | |
Department(s) | 2,666 | 2,168 | 2,977 | 2,574 | |
Other revenue | 1 | 31,434 | 39,315 | 36,475 | 39,415 |
Gains | - | - | - | - | |
Interest | - | - | - | - | |
Total Income | 118,316 | 123,832 | 121,926 | 124,289 | |
Expenses |
|||||
Personnel | 75,240 | 82,869 | 80,522 | 82,873 | |
Operating | 2 | 33,083 | 30,093 | 33,934 | 30,932 |
Depreciation and amortisation | 7,064 | 7,900 | 6,000 | 7,456 | |
Capital charge | 2,895 | 2,970 | 2,970 | 3,028 | |
Finance costs | - | - | - | - | |
Other | 24 | - | - | - | |
Total Expenses | 118,306 | 123,832 | 123,426 | 124,289 | |
Net Surplus / (Deficit) | - | - | (1,500) | - | |
Other comprehensive income | - | - | - | - | |
Total Comprehensive Income | 10 | - | (1,500) | - |
Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | |||
---|---|---|---|---|---|
Note | Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Balance at 1 July |
|||||
General funds | 38,402 | 39,602 | 39,602 | 38,102 | |
Revaluation reserve | - | - | - | - | |
Other reserves | - | - | - | - | |
Taxpayers' Funds Opening Balance | 38,402 | 39,602 | 39,602 | 38,102 | |
Changes in Taxpayers' Funds |
|||||
Comprehensive income for the period | 10 | - | (1,500) | - | |
Repayment of surplus | (10) | - | - | - | |
Capital contribution | 1,200 | - | - | 12,211 | |
Capital withdrawal | - | - | - | (108) | |
Other | - | - | - | - | |
Total Changes in Taxpayers' Funds | 1,200 | - | (1,500) | 12,103 | |
Balance at 30 June |
|||||
General funds | 39,602 | 39,602 | 38,102 | 50,205 | |
Revaluation reserve | - | - | - | - | |
Other reserves | - | - | - | - | |
Taxpayers' Funds Closing Balance | 39,602 | 39,602 | 38,102 | 50,205 |
Forecast Statement of Financial Position as at 30 June 2010#
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 | 23,521 | 19,938 | 21,361 | 19,919 | |
Debtors and other receivables | 3 | 3,670 | 4,326 | 4,347 | 4,347 |
Prepayments | 427 | 1,088 | 500 | 500 | |
Inventories | - | - | - | - | |
Other current assets | - | - | - | - | |
Total Current Assets | 27,618 | 25,352 | 26,208 | 24,766 | |
Non-current Assets |
|||||
Property, plant and equipment | 4 | 24,404 | 26,303 | 24,205 | 35,642 |
Intangible assets | 5 | 3,936 | 4,627 | 4,335 | 6,443 |
Other non-current assets | - | - | - | - | |
Total Non- current Assets | 28,340 | 30,930 | 28,540 | 42,085 | |
Total Assets | 55,958 | 56,282 | 54,748 | 66,851 | |
Liabilities |
|||||
Current Liabilities |
|||||
Creditors and other payables | 5,554 | 6,948 | 5,354 | 5,354 | |
Repayment of surplus | 10 | - | - | - | |
Employee entitlements | 7 | 6,908 | 6,404 | 6,808 | 6,808 |
Other current liabilities | 32 | 128 | 32 | 32 | |
Total Current Liabilities | 12,504 | 13,480 | 12,194 | 12,194 | |
Non-current Liabilities |
|||||
Provisions | 6 | 200 | 200 | 200 | 200 |
Employee entitlements | 3,652 | 3,000 | 4,252 | 4,252 | |
Other non-current liabilities | - | - | - | - | |
Total Non-current Liabilities | 3,852 | 3,200 | 4,452 | 4,452 | |
Total Liabilities | 16,356 | 16,680 | 16,646 | 16,646 | |
Taxpayers' Funds |
|||||
General funds | 39,602 | 39,602 | 38,102 | 50,205 | |
Revaluation reserve | - | - | - | - | |
Other reserves | - | - | - | - | |
Total Taxpayers' Funds | 39,602 | 39,602 | 38,102 | 50,205 | |
Total Liabilities and Taxpayers' Funds | 55,958 | 56,282 | 54,748 | 66,851 |
Statement of Forecast Cash Flows for the year ending 30 June 2010#
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 | 84,226 | 82,349 | 82,464 | 82,300 | |
Department(s) | 2,967 | 2,168 | 2,977 | 2,574 | |
Other | 31,116 | 38,715 | 35,808 | 39,415 | |
Interest | - | - | - | - | |
Payments to: |
|||||
Suppliers | (31,178) | (30,476) | (34,090) | (31,315) | |
Employees | (74,795) | (82,186) | (80,139) | (82,490) | |
Capital charge | (2,895) | (2,970) | (2,970) | (3,028) | |
Goods and services tax (net) | (37) | - | - | - | |
Other operating activities | (29) | - | - | - | |
Net Cash from Operating Activities | 8 | 9,375 | 7,600 | 4,050 | 7,456 |
Cash Flow from Investing Activities |
|||||
Receipts from: |
|||||
Sale of property, plant and equipment | 73 | 300 | 300 | 300 | |
Sale of intangible assets | - | - | - | - | |
Sale of other non-current assets | - | - | - | - | |
Purchase of: |
|||||
Property, plant and equipment | (5,153) | (9,905) | (5,100) | (17,413) | |
Intangible assets | - | - | (1,400) | (3,888) | |
Other non-current assets | (17) | - | - | - | |
Net Cash from Investing Activities | (5,097) | (9,605) | (6,200) | (21,001) | |
Cash Flow from Financing Activities |
|||||
Capital contribution | 1,200 | - | - | 12,211 | |
Other financing cash inflows | - | - | - | - | |
Repayment of surplus | - | - | (10) | - | |
Capital withdrawal | - | - | - | (108) | |
Other financing cash outflows | - | - | - | - | |
Net Cash from Financing Activities | 1,200 | - | (10) | 12,103 | |
Net Increase / (Decrease) in Cash | 5,478 | (2,005) | (2,160) | (1,442) | |
Cash at the beginning of the year | 18,043 | 21,943 | 23,521 | 21,361 | |
Cash at the end of the year | 23,521 | 19,938 | 21,361 | 19,919 |
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 up to 1260 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 20th April 2009.
Statement of Entity-Specific Accounting Policies#
The New Zealand Customs Service (Customs) has applied the accounting policies set out in Statement of Common Accounting Policies in this document, except as stated below.
Reporting Entity
Customs is a government department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting, Customs is a public benefit entity.
Customs mitigates risks to the New Zealand economy and society posed by international movement of people, goods and craft, facilitation of legitimate trade and travel, and collection of revenue to support government's social economy and fiscal objectives. In addition, Customs reports on Crown activities and trust monies which it administers.
Authorisation Statement
These forecast financial statements were authorised for issue by Customs on 20th April 2009. Customs 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
Capitalisation
The capitalisation thresholds are set out below:
- Intangible assets (computer software) $1,000.
- All other property plant and equipment $500.
Depreciation
The estimated useful lives of property, plant and equipment are set out below:
- Launch and watercraft - 10 years.
- Computer equipment/hardware - 4 years.
- Motor vehicles - 5 years.
- Furniture and office equipment - 5 years.
- Plant and equipment - 5-10 years.
- Intangible assets (computer software) - 5-10 years.
The cost of leasehold improvements is capitalised and amortised over the unexpired period of the lease or over the estimated remaining useful lives of the improvements, whichever is shorter.
Cost allocation
Customs has determined the costs of outputs using a cost allocation system, which is outlined below.
Cost Allocation Policy
Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities based on cost drivers and related activity/usage information.
Criteria for Direct and Indirect Costs
"Direct Costs" are those costs directly attributed to an output. "Indirect Costs" are those costs that cannot be identified in an economically feasible manner with a specific output.
Direct Costs Assigned to Outputs
Direct costs are charged directly to outputs, where appropriate. This includes depreciation and occupancy costs.
Basis for Assigning Indirect and Corporate Costs to Outputs
Indirect costs are assigned to outputs based on a proportion of direct staff costs usage for each output.
Notes to the Financial Statements#
Note 1 - Other Revenue
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Sale of Publications | 185 | 181 | 181 | 181 |
Compliance Activity - Officers' Time | 492 | 462 | 462 | 462 |
Compliance Activities - Other | 284 | 305 | 305 | 305 |
Overseas Aid Projects | 762 | 398 | 1178 | 736 |
Information Processing | 377 | 169 | 558 | 37 |
Cost Recoveries - Other | 974 | 1,120 | 1,120 | 1,120 |
Import Entry Transaction Fees | 23,253 | 23,595 | 20,595 | 23,595 |
Goods Cost Recovery | 6,559 | 13,996 | 13,496 | 13,996 |
State Sector Retirement Savings Scheme Recoveries | 1,214 | 1,257 | 1,557 | 1,557 |
Less: Departmental revenue | 2,666 | 2,168 | 2,977 | 2,574 |
Total other revenue |
31,434 | 39,315 | 36,475 | 39,415 |
Note 2 - Operating Expenses#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Operating expenses include: | ||||
Net loss on sale of fixed assets | 1 | - | - | - |
Bad debts written-off | 22 | - | - | - |
Increase (decrease) in provision for doubtful debts | -18 | - | - | - |
Audit fees to auditors for audit of financial statements | 210 | 230 | 230 | 230 |
Audit fees to auditors for NZ IFRS transition | 16 | - | - | - |
Fees to auditors for other services provided | 9 | - | - | - |
Operating lease rentals | 5,565 | 5,885 | 6,035 | 6,135 |
Occupancy costs (excluding rentals) | 1,604 | 1,282 | 1,682 | 1,782 |
Computer equipment costs | 2,073 | 1,456 | 1,844 | 1,844 |
Communication costs | 1,842 | 2,049 | 1,942 | 1,990 |
Net Foreign exchange losses | 11 | 215 | 11 | 11 |
Consultants' fees | 2,445 | 790 | 2,990 | 890 |
Overseas travel | 1,163 | 863 | 900 | 600 |
Domestic travel | 2,646 | 2,551 | 2,951 | 2,200 |
Other operating costs | 15,494 | 14,772 | 15,349 | 15,250 |
Total |
33,083 | 30,093 | 33,934 | 30,932 |
Note 3 - Debtors and Other Receivables#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Trade debtors | 273 | 421 | 421 | 421 |
Less: Provision for doubtful debts | -18 | -5 | -5 | -5 |
Net trade debtors | 255 | 416 | 416 | 416 |
Receivables | 700 | 1,354 | 1,375 | 1,375 |
Debtor - Import Entry Transaction Fee | 1,591 | 1,491 | 1,491 | 1,491 |
Debtor - Crown | 125 | 115 | 115 | 115 |
Debtor - Goods Cost Recovery | 999 | 950 | 950 | 950 |
Total debtors and receivables |
3,670 | 4,326 | 4,347 | 4,347 |
Note 4 - Property, Plant and Equipment#
Land $000 |
Buildings $000 |
Leasehold improvements $000 |
Furniture/office equipment $000 |
Other $000 |
Total $000 |
|
---|---|---|---|---|---|---|
Cost or revaluation |
||||||
Balance as at 1 July 2009 | - | - | 5,211 | 2,710 | 46,160 | 54,081 |
Additions by purchase | - | - | 8,000 | 1,050 | 8,363 | 17,413 |
Additions internally developed | - | - | - | - | - | - |
Revaluation increase | - | - | - | - | - | - |
Transfers between classes | - | - | - | - | - | - |
Disposals | - | - | - | - | 800 | 800 |
Balance as at 30 June 2010 |
- | - | 13,211 | 3,760 | 53,723 | 70,694 |
Accumulated depreciation and impairment losses |
||||||
Balance as at 1 July 2009 | - | - | 2,788 | 2,075 | 25,013 | 29,876 |
Depreciation expense | - | - | 1,233 | 311 | 4,132 | 5,676 |
Eliminate on disposal | - | - | - | - | 500 | 500 |
Eliminate on revaluation | - | - | - | - | - | - |
Transfers between classes | - | - | - | - | - | - |
Impairment losses | - | - | - | - | - | - |
Balance as at 30 June 2010 |
- | - | 4,021 | 2,386 | 28,645 | 35,052 |
Carrying amount as at 30 June 2010 |
- | - | 9,190 | 1,374 | 25,078 | 35,642 |
Note 5 - Intangible assets#
Acquired software $000 |
Internally generated software $000 |
Other $000 |
Total $000 |
|
---|---|---|---|---|
Cost |
||||
Balance as at 1 July 2009 | 3,110 | 18,567 | - | 21,677 |
Additions by purchase | 300 | 3,588 | - | 3,888 |
Additions internally developed | - | - | - | - |
Disposals | - | - | - | - |
Balance as at 30 June 2010 |
3,410 | 22,155 | - | 25,565 |
Accumulated amortisation and impairment losses |
||||
Balance as at 1 July 2009 | 785 | 16,557 | - | 17,342 |
Amortisation expense | 95 | 1,685 | - | 1,780 |
Disposals | - | - | - | - |
Impairment losses | - | - | - | - |
Balance as at 30 June 2010 |
880 | 18,242 | - | 19,122 |
Carrying amount as at 30 June 2010 |
2,530 | 3,913 | - | 6,443 |
Note 6 - Provision#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Make good provision | 200 | 200 | 200 | 200 |
Total |
200 | 200 | 200 | 200 |
Note 7 - Employee Entitlements#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Current Liabilities | ||||
Personnel accruals | 2,319 | 1,819 | 2,119 | 2,219 |
Annual leave | 3,579 | 3,579 | 3,479 | 3,379 |
Retirement and long service leave | 1,010 | 1,010 | 1,210 | 1,210 |
Total current portion | 6,908 | 6,404 | 6,808 | 6,808 |
Non-current Liabilities | ||||
Retirement and long service leave | 3,652 | 3,000 | 4,252 | 4,252 |
Total non-current portion | 3,652 | 3,000 | 4,252 | 4,252 |
Total employee entitlements |
10,560 | 9,404 | 11,060 | 11,060 |
Note 8 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Net surplus/(deficit) | 10 | - | -1,500 | - |
Add/(less) non-cash items | ||||
Depreciation and amortisation expense | 7,064 | 7,900 | 6,000 | 7,456 |
Other non-cash items | - | - | - | - |
Total non-cash items | 7,064 | 7,900 | 6,000 | 7,456 |
Add/(less) items classified as investing or financing activities | ||||
(Gains)/losses on disposal property, plant and equipment | 1 | - | - | - |
Total items classified as investing or financing activities | 1 | - | - | - |
Add/(less) movements in working capital items | ||||
(Inc)/Dec in debtors and other receivables | 70 | -656 | -677 | - |
(Inc)/Dec in prepayments | 665 | -661 | -73 | - |
Inc/(Dec) in creditors and other payables | 201 | 2,775 | -200 | - |
Inc/(Dec) in employee entitlements | 1,453 | -1,844 | 500 | - |
Inc/(Dec) in other short term liabilities | -89 | 86 | - | - |
Net movements in working capital items | 2,300 | -300 | -450 | - |
Net cash from operating activities | 9,375 | 7,600 | 4,050 | 7,456 |
Forecast Financial Statements Ministry of Defence#
Statement of Forecast Comprehensive Income for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | |||
---|---|---|---|---|---|
Note | Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Income |
|||||
Crown | 9,398 | 9,398 | 9,688 | 10,308 | |
Department(s) | 1 | 233 | 203 | 1,654 | 203 |
Other revenue | - | - | - | - | |
Gains | - | - | - | - | |
Interest | - | - | - | - | |
Total Income | 9,631 | 9,601 | 11,342 | 10,511 | |
Expenses |
|||||
Personnel | 6,204 | 6,622 | 6,612 | 7,193 | |
Operating | 2 | 2,754 | 2,352 | 4,202 | 2,762 |
Depreciation and amortisation | 262 | 371 | 272 | 300 | |
Capital charge | 256 | 256 | 256 | 256 | |
Finance costs | - | - | - | - | |
Other | - | - | - | - | |
Total Expenses | 8 | 9,476 | 9,601 | 11,342 | 10,511 |
Net Surplus / (Deficit) | 9 | - | - | - | - |
Other comprehensive income | - | - | - | - | |
Total Comprehensive Income | 155 | - | - | - |
Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | |||
---|---|---|---|---|---|
Note | Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Balance at 1 July |
|||||
General funds | 3,416 | 3,416 | 3,416 | 3,416 | |
Revaluation reserve | - | - | - | - | |
Other reserves | - | - | - | - | |
Taxpayers' Funds Opening Balance | 3,416 | 3,416 | 3,416 | 3,416 | |
Changes in Taxpayers' Funds |
|||||
Comprehensive income for the period | 155 | - | - | - | |
Repayment of surplus | (155) | - | - | - | |
Capital contribution | - | - | - | - | |
Capital withdrawal | - | - | - | - | |
Other | - | - | - | - | |
Total Changes in Taxpayers' Funds | - | - | - | - | |
Balance at 30 June |
|||||
General funds | 3,416 | 3,416 | 3,416 | 3,416 | |
Revaluation reserve | - | - | - | - | |
Other reserves | - | - | - | - | |
Taxpayers' Funds Closing Balance | 3,416 | 3,416 | 3,416 | 3,416 |
Forecast Statement of Financial Position as at 30 June 2010#
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 | 1,917 | 1,318 | 1,642 | 1,322 | |
Debtors and other receivables | 3 | 195 | 250 | 245 | 431 |
Prepayments | 14 | 13 | 15 | 25 | |
Inventories | - | - | - | - | |
Other current assets | - | - | - | - | |
Total Current Assets | 2,126 | 1,581 | 1,902 | 1,778 | |
Non-current Assets |
|||||
Property, plant and equipment | 4 | 2,510 | 2,662 | 2,563 | 2,433 |
Intangible assets | 5 | 148 | 143 | 198 | 348 |
Other non-current assets | - | - | - | - | |
Total Non- current Assets | 2,658 | 2,805 | 2,761 | 2,781 | |
Total Assets | 4,784 | 4,386 | 4,663 | 4,559 | |
Liabilities |
|||||
Current Liabilities |
|||||
Creditors and other payables | 6 | 628 | 317 | 617 | 445 |
Repayment of surplus | 155 | - | - | - | |
Employee entitlements | 7 | 375 | 425 | 400 | 450 |
Other current liabilities | - | - | - | - | |
Total Current Liabilities | 1,158 | 742 | 1,017 | 895 | |
Non-current Liabilities |
|||||
Provisions | - | - | - | - | |
Employee entitlements | 7 | 210 | 228 | 230 | 248 |
Other non-current liabilities | - | - | - | - | |
Total Non-current Liabilities | 210 | 228 | 230 | 248 | |
Total Liabilities | 1,368 | 970 | 1,247 | 1,143 | |
Taxpayers' Funds |
|||||
General funds | 3,416 | 3,416 | 3,416 | 3,416 | |
Revaluation reserve | - | - | - | - | |
Other reserves | - | - | - | - | |
Total Taxpayers' Funds | 3,416 | 3,416 | 3,416 | 3,416 | |
Total Liabilities and Taxpayers' Funds | 4,784 | 4,386 | 4,663 | 4,559 |
Statement of Forecast Cash Flows for the year ending 30 June 2010#
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 | 9,398 | 9,398 | 9,688 | 9,398 | |
Department(s) | 250 | 203 | 1,654 | 203 | |
Other | - | - | - | - | |
Interest | - | - | - | - | |
Payments to: |
|||||
Suppliers | (2,735) | (2,759) | (4,847) | (2,716) | |
Employees | (6,095) | (6,278) | (6,359) | (6,749) | |
Capital charge | (256) | (256) | (256) | (256) | |
Goods and services tax (net) | - | - | 120 | 120 | |
Other operating activities | - | - | - | - | |
Net Cash from Operating Activities | 562 | 308 | - | - | |
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 | (323) | (350) | (275) | (320) | |
Intangible assets | (26) | - | - | - | |
Other non-current assets | - | - | - | - | |
Net Cash from Investing Activities | (349) | (350) | (275) | (320) | |
Cash Flow from Financing Activities |
|||||
Capital contribution | - | - | - | - | |
Other financing cash inflows | - | - | - | - | |
Repayment of surplus | (740) | (244) | - | - | |
Capital withdrawal | - | - | - | - | |
Other financing cash outflows | - | - | - | - | |
Net Cash from Financing Activities | (740) | (244) | - | - | |
Net Increase / (Decrease) in Cash | (527) | (286) | (275) | (320) | |
Cash at the beginning of the year | 2,444 | 1,604 | 1,917 | 1,642 | |
Cash at the end of the year | 1,917 | 1,318 | 1,642 | 1,322 |
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 70 staff positions.
- 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 3 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 Ministry of Defence 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 Defence, prepared in accordance with section 38 of the Public Finance Act 1989.
Ministry of Defence is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Ministry of Defence is a public benefit entity.
Authorisation Statement
These forecast financial statements were authorised for issue by the Secretary of Defence on 3 April 2009. The Ministry of Defence is responsible for the forecast financial statements presented, including the appropriateness of the assumptions underlying the forecast financial statements presented and all other required disclosures.
Specific Accounting Policies
Property, Plant and Equipment
The capitalisation threshold for property, plant and equipment is $5,000.
Depreciation
The estimated useful lives of property, plant and equipment are set out below:
- Leasehold improvements - 18 years.
- IT equipment / hardware - 3-5 years.
- Furniture and office equipment - 7 years.
Intangible Assets
The capitalisation threshold for intangible assets is $5,000.
The estimated useful life of intangible assets is 3 years.
Cost Allocation
The Ministry derives the cost of outputs using a cost allocation system that is outlined below:
Criteria for direct and indirect costs
"Direct costs" are those costs directly attributable to an output. "Indirect costs:" are those costs that cannot be identified in an economically feasible manner with a specific output.
Direct costs assigned to outputs
Direct costs are assigned to outputs by charging payments to specific job numbers. Selection of "general cost" job numbers within an output class will treat the expense as a direct cost to the output even though a specific job within the output class has not been identified.
Basis for assigning indirect and corporate costs to outputs
Indirect costs are assigned to outputs by charging payments to a corporate job number. The accounting system is programmed to allocate job costs to three output classes on a predetermined percentage for each expense item. The percentage number is an assessment of services to be provided to each output class in the ensuing year.
Notes to the Financial Statements#
Note 1 - Other Revenue - Department
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Employer superannuation subsidy recovery | 163 | 203 | 203 | 203 |
New Zealand Defence Force pre-acquisition costs | 52 | - | 1,451 | - |
Pay and Employment Equity Review Recovery | 18 | - | - | - |
Total Other Revenue |
233 | 203 | 1,654 | 203 |
Note 2 - Operating Expenses#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Consultants' fees | 250 | 140 | 1,298 | 879 |
Domestic travel | 76 | 87 | 91 | 91 |
Overseas travel | 295 | 248 | 234 | 234 |
Other | 2,133 | 1,877 | 2,579 | 1,558 |
Total Operating Expenses |
2,754 | 2,352 | 4,202 | 2,762 |
Note 3 - Debtors and Other Receivables#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Debtor Crown | 99 | 250 | 245 | 431 |
Debtor Other | 96 | - | - | - |
Total Debtors and Other Receivables |
195 | 250 | 245 | 431 |
Note 4 - Plant, Property and Equipment#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Cost or Revaluation |
||||
Opening balance as at 1 July | 3,663 | 3,913 | 3,751 | 4,026 |
Additions by purchase | 103 | 375 | 275 | 320 |
Disposals | (15) | (150) | - | (200) |
Closing balance as at 30 June | 3,751 | 4,138 | 4,026 | 4,146 |
Accumulated depreciation |
||||
Opening balance as at 1 July | 1,030 | 1,306 | 1,241 | 1,463 |
Depreciation expense | 211 | 320 | 222 | 250 |
Disposals | - | (150) | - | - |
Closing balance as at 30 June | 1,241 | 1,476 | 1,463 | 1,713 |
Net Plant Property and Equipment at 30 June |
2,510 | 2,662 | 2,563 | 2,433 |
Note 5 - Intangible Assets#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Cost | 527 | 572 | 588 | 688 |
Additions by purchase or reclassification | 61 | 83 | 100 | 200 |
Closing balance as at 30 June | 588 | 655 | 688 | 888 |
Accumulated amortisation and impairment losses |
||||
Opening balance as at 1 July | 389 | 461 | 440 | 490 |
Amortisation expense | 51 | 51 | 50 | 50 |
Closing balance as at 30 June | 440 | 512 | 490 | 540 |
Carrying amount as at 30 June |
148 | 143 | 198 | 348 |
Note 6 - Current Liabilities#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Creditors and Other Payables | 169 | 130 | 372 | 200 |
Accrued Expenses | 316 | 67 | 125 | 125 |
GST payable | 121 | 120 | 120 | 120 |
Accrued expenses for property, plant and equipment | 22 | - | - | - |
Total |
628 | 317 | 617 | 445 |
Note 7 - Employee Entitlements#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Salaries payable | - | 78 | - | - |
Annual Leave | 360 | 332 | 383 | 433 |
Sick leave | 15 | 15 | 17 | 17 |
Total current employee entitlements | 375 | 425 | 400 | 450 |
Long service, retirement and resigning leave | 210 | 228 | 230 | 248 |
Total non current employee entitlements | 210 | 228 | 230 | 248 |
Total Employee Entitlements |
585 | 653 | 630 | 698 |
Note 8 - Reconciliation of Departmental Expenses and Appropriations#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Appropriations for output expenses | ||||
Total for Vote Defence | 9,476 | 9,601 | 11,342 | 10,511 |
Total |
9,476 | 9,601 | 11,342 | 10,511 |
Note 9 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2009#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Net Surplus/(deficit) | 155 | - | - | - |
Add/(less) non-cash items | ||||
Depreciation and amortisation expense | 262 | 371 | 272 | 300 |
Net gains on derivative financial instruments | 22 | - | - | - |
Total non-cash items | 284 | 371 | 272 | 300 |
Add/(less) items classified as savings or financing activities |
||||
Total items classified as investing or financing activities | - | - | - | - |
Add/(less) movements in working capital items |
||||
(Inc)/Dec in debtors and other receivables | 11 | - | (50) | 5 |
(Inc/Dec) in prepayments | (1) | - | (1) | (2) |
(Inc/Dec) in creditors and other payables | 108 | (108) | (176) | (308) |
(Inc/Dec) in employee entitlements | 5 | 25 | (25) | (20) |
Net movements in working capital items | 123 | (83) | (252) | (325) |
Add/(Less) movements in non-current liabilities |
- | |||
(Inc)/Dec in employee entitlements | - | 20 | (20) | 25 |
Net movement in non-current liabilities | - | 20 | (20) | 25 |
Net cash from operating activities |
562 | 308 | - | - |
Forecast Financial Statements New Zealand Defence Force#
Statement of Forecast Comprehensive Income for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | |||
---|---|---|---|---|---|
Note | Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Income |
|||||
Crown | 1,874,992 | 2,045,532 | 2,083,494 | 2,133,981 | |
Department(s) | 10,062 | 10,942 | 12,942 | 15,442 | |
Other revenue | 6,954 | 8,643 | 10,643 | 8,777 | |
Gains | 1 | 12,859 | - | 27,693 | - |
Interest | 78 | 100 | 100 | 100 | |
Total Income | 1,904,945 | 2,065,217 | 2,134,872 | 2,158,300 | |
Expenses |
|||||
Personnel | 691,925 | 762,146 | 813,708 | 818,493 | |
Operating | 2 | 553,210 | 591,846 | 553,100 | 609,880 |
Depreciation and amortisation | 279,755 | 349,671 | 319,844 | 332,733 | |
Capital charge | 356,601 | 361,454 | 400,427 | 397,094 | |
Finance costs | - | - | - | - | |
Other | 3,526 | - | 340 | - | |
Total Expenses | 3 | 1,885,017 | 2,065,117 | 2,087,419 | 2,158,200 |
Net Surplus / (Deficit) | 100 | 100 | 47,453 | 100 | |
Other comprehensive income | 7 | 514,633 | - | - | - |
Total Comprehensive Income | 534,561 | 100 | 47,453 | 100 |
Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | |||
---|---|---|---|---|---|
Note | Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Balance at 1 July |
|||||
General funds | 3,570,383 | 3,653,523 | 3,655,619 | 3,658,016 | |
Revaluation reserve | 1,132,138 | 1,134,132 | 1,647,789 | 1,647,675 | |
Other reserves | - | - | - | - | |
Taxpayers' Funds Opening Balance | 4,702,521 | 4,787,655 | 5,303,408 | 5,305,691 | |
Changes in Taxpayers' Funds |
|||||
Comprehensive income for the period | 534,561 | 100 | 47,453 | 100 | |
Repayment of surplus | (7,069) | (100) | (20,100) | (100) | |
Capital contribution | 4 | 73,395 | 54,190 | 54,930 | 80,000 |
Capital withdrawal | 4 | - | - | (80,000) | (171) |
Other | - | - | - | - | |
Total Changes in Taxpayers' Funds | 600,887 | 54,190 | 2,283 | 79,829 | |
Balance at 30 June |
|||||
General funds | 3,655,619 | 3,707,713 | 3,658,016 | 3,737,845 | |
Revaluation reserve | 1,647,789 | 1,134,132 | 1,647,675 | 1,647,675 | |
Other reserves | - | - | - | - | |
Taxpayers' Funds Closing Balance | 5,303,408 | 4,841,845 | 5,305,691 | 5,385,520 |
Forecast Statement of Financial Position as at 30 June 2010#
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 | 80,530 | 30,050 | 41,464 | 10,000 | |
Debtors and other receivables | 5 | 215,429 | 150,656 | 205,545 | 7,438 |
Prepayments | 33,306 | 30,059 | 35,000 | 35,000 | |
Inventories | 6 | 82,820 | 104,745 | 97,827 | 105,063 |
Other current assets | - | - | - | - | |
Total Current Assets | 412,085 | 315,510 | 379,836 | 157,501 | |
Non-current Assets |
|||||
Property, plant and equipment | 7 | 4,957,082 | 4,514,468 | 4,979,277 | 5,232,195 |
Intangible assets | 8 | 16,756 | 21,227 | 16,518 | 16,517 |
Other non-current assets | 6 | 171,355 | 194,526 | 181,679 | 195,117 |
Total Non- current Assets | 5,145,193 | 4,730,221 | 5,177,474 | 5,443,829 | |
Total Assets | 5,557,278 | 5,045,731 | 5,557,310 | 5,601,330 | |
Liabilities |
|||||
Current Liabilities |
|||||
Creditors and other payables | 168,519 | 140,941 | 151,369 | 142,577 | |
Repayment of surplus | 7,069 | 100 | 20,100 | 100 | |
Employee entitlements | 27,756 | 21,500 | 29,150 | 29,150 | |
Other current liabilities | - | - | - | - | |
Total Current Liabilities | 203,344 | 162,541 | 200,619 | 171,827 | |
Non-current Liabilities |
|||||
Provisions | - | - | - | - | |
Employee entitlements | 50,526 | 41,345 | 51,000 | 43,983 | |
Other non-current liabilities | - | - | - | - | |
Total Non-current Liabilities | 50,526 | 41,345 | 51,000 | 43,983 | |
Total Liabilities | 253,870 | 203,886 | 251,619 | 215,810 | |
Taxpayers' Funds |
|||||
General funds | 3,655,619 | 3,707,713 | 3,658,016 | 3,737,845 | |
Revaluation reserve | 1,647,789 | 1,134,132 | 1,647,675 | 1,647,675 | |
Other reserves | - | - | - | - | |
Total Taxpayers' Funds | 5,303,408 | 4,841,845 | 5,305,691 | 5,385,520 | |
Total Liabilities and Taxpayers' Funds | 5,557,278 | 5,045,731 | 5,557,310 | 5,601,330 |
Statement of Forecast Cash Flows for the year ending 30 June 2010#
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 | 1,815,042 | 2,102,079 | 2,079,987 | 2,332,088 | |
Department(s) | 11,281 | 10,942 | 16,443 | 15,442 | |
Other | 3,592 | 8,643 | 20,533 | 8,777 | |
Interest | 78 | 100 | 100 | 100 | |
Payments to: |
|||||
Suppliers | (539,766) | (603,046) | (531,846) | (617,130) | |
Employees | (681,502) | (764,861) | (806,189) | (819,859) | |
Capital charge | (356,601) | (361,454) | (400,427) | (397,094) | |
Goods and services tax (net) | 2,367 | (5,294) | (2,570) | (8,793) | |
Other operating activities | 1, 9 | (13,649) | - | (30,693) | - |
Net Cash from Operating Activities | 10 | 240,842 | 387,109 | 345,338 | 513,531 |
Cash Flow from Investing Activities |
|||||
Receipts from: |
|||||
Sale of property, plant and equipment | 1,910 | - | 7,207 | - | |
Sale of intangible assets | - | - | - | - | |
Sale of other non-current assets | - | - | - | - | |
Purchase of: |
|||||
Property, plant and equipment | (352,792) | (429,067) | (352,677) | (598,725) | |
Intangible assets | (5,704) | (8,000) | (6,795) | (5,999) | |
Other non-current assets | - | - | - | - | |
Net Cash from Investing Activities | (356,586) | (437,067) | (352,265) | (604,724) | |
Cash Flow from Financing Activities |
|||||
Capital contribution | 4 | 73,395 | 54,190 | 54,930 | 80,000 |
Other financing cash inflows | - | - | - | - | |
Repayment of surplus | (6,182) | (100) | (7,069) | (20,100) | |
Capital withdrawal | 4 | - | - | (80,000) | (171) |
Other financing cash outflows | - | - | - | - | |
Net Cash from Financing Activities | 67,213 | 54,090 | (32,139) | 59,729 | |
Net Increase / (Decrease) in Cash | (48,531) | 4,132 | (39,066) | (31,464) | |
Cash at the beginning of the year | 129,061 | 25,918 | 80,530 | 41,464 | |
Cash at the end of the year | 80,530 | 30,050 | 41,464 | 10,000 |
Statement of Significant Assumptions#
These statements have been compiled on the basis of government policies and the New Zealand Defence Force (NZDF) Output Plan agreements with the Minister for Defence at the time the statements were finalised.
The 2008/09 budgeted figures are based on management's judgments, estimates and assumptions of the final 2008/09 outcome and are used as the opening position for 2009/10 forecasts.
Key assumptions underlying this forecast are:
- There will be no significant change in government policies or the New Zealand Defence Force's Output Plan agreement with the Minister of Defence.
- Ministry of Defence payments reflect the forecast payments for acquisition projects which have been approved by Cabinet. Should additional projects be approved during the year, there may be some payments for these projects during the year.
- There will be no major changes in exchange rates.
- The capital charge rate for the year ending 30 June 2010 is assumed to be 7.5% per annum.
Statement of Entity-Specific Accounting Policies#
The New Zealand Defence Force 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 New Zealand Defence Force, prepared in accordance with section 38 of the Public Finance Act 1989.
New Zealand Defence Force is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting New Zealand Defence Force is a public benefit entity. In addition the financial statements include information on the activities that NZDF administers on behalf of Vote Veterans' Affairs Defence Force.
In these financial statements the New Zealand Defence Force is also referred to as the NZDF, and Veterans' Affairs New Zealand is also referred to as VANZ.
Authorisation Statement
These forecast financial statements were authorised for issue by the Chief of Defence Force on 22 April 2009. The Chief of Defence Force as the Chief Executive of the New Zealand Defence Force 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 $5,000
- All other property, plant and equipment $5,000
Depreciation
The estimated useful lives of property, plant and equipment are set out below.
- Buildings 5 - 100 years
- Leasehold improvements 2 - 20 years
- IT Equipment / Hardware 2 - 5 years
- Motor vehicles 10 - 15 years
- Furniture and office equipment 5 - 20 years
- Specialist Military Equipment 5 - 55 years
- Other Plant and Equipment 5 - 50 years
Revaluation
Land, Buildings and Specialist Military Equipment asset classes are subject to revaluation. Valuations use a market-based approach where possible. Where reliable market evidence is unavailable optimised depreciated replacement cost (ODRC) is used to calculate fair value. Valuations are determined or reviewed by an independent registered valuer.
Specialist Military Equipment with a net carrying value of $2 million or more, or groups of like assets with a total carrying value of $4 million or more are subject to revaluation. All other specialist military equipment is recorded at historical cost.
Intangible Assets
Capitalisation thresholds applied are:
- Purchased software $5,000
- Internally developed software $5,000
The estimated useful lives of intangible assets are set out below:
- Purchased software 3 - 20 years
- Internally developed software 3 - 20 years
Inventories
Inventories are held for distribution or consumption in the provision of services and are comprised of munitions, technical spares and consumable items.
Inventory intended to be kept for more than one year has been classified as non-current inventory.
Inventories are recorded at weighted average cost and the cost of inventory reflects any obsolescence or other impairment.
Cost Allocation
The NZDF has determined the cost of outputs using a cost allocation system outlined below.
- Direct costs of a force element (for example, a squadron, a frigate, a battalion) are attributed directly to an appropriate output.
- Support unit costs are charged to outputs using drivers that reflect the use of that activity to produce outputs.
- Overhead costs are charged to outputs using the percentage of that outputs gross operating budget (exclusive of capital charge) to the total gross budget (exclusive of capital charge) for all outputs.
The allocation rules are reviewed if there is significant organisational change to alter the continued appropriateness of the rules.
Notes to the Financial Statements#
Note 1 - Foreign Exchange Gains
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Unrealised Foreign Exchange Gain | 14,799 | - | 30,693 | - |
Clearing accumulated disposal costs | (1,940) | - | (3,000) | - |
Total |
12,859 | - | 27,693 | - |
The Forecast Financial Statements include Unrealised Foreign Exchange Gains of $30.693 million as at 28 February 2009 (28 February 2008 $14.451 million). It is Government policy not to budget for remeasurements in asset values.
Note 2 - Operating Expenses#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Materials | 185,645 | 185,470 | 208,146 | 208,044 |
Repairs and maintenance | 85,749 | 110,013 | 77,178 | 88,709 |
Premises cost | 77,342 | 88,687 | 73,189 | 73,514 |
Operating lease rentals | 40,729 | 41,700 | 44,640 | 39,501 |
Domestic travel | 14,730 | 13,139 | 15,912 | 14,193 |
Overseas travel | 18,708 | 17,051 | 20,122 | 17,818 |
Consultants' fees | 1,936 | 1,973 | 3,496 | 2,513 |
Other operating expenses | 128,371 | 133,813 | 110,417 | 165,588 |
Total |
553,210 | 591,846 | 553,100 | 609,880 |
Note 3 - Reconciliation of Departmental Expenses and Appropriations#
This note reconciles the expenses reported in the forecast Statement of Comprehensive Income with the corresponding departmental appropriations appearing in the Estimates of Appropriations.
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Appropriations for output expenses |
||||
Total for Vote: Defence Force - Annual Expenses | 1,814,954 | 2,086,176 | 2,099,297 | 2,149,823 |
Total for Vote: Defence Force - Multi Year Appropriation (MYA) | 71,292 | - | - | - |
Total for Vote: Veterans' Affairs - Defence Force | 7,531 | 3,941 | 7,782 | 8,377 |
Total Appropriations for output expenses |
1,893,777 |
2,090,117 |
2,107,079 |
2,158,200 |
Appropriations for other expenses |
||||
Asset Write-Offs | 2,700 | - | 3,000 | - |
Gifting of Putiki Rifle Range | - | - | 340 | - |
Total Appropriations for other expenses |
2,700 |
- |
3,340 |
- |
Adjustments |
||||
Appropriation amounts unused | (8,760) | - | (20,000) | - |
Proposed transfer to 2009/10 | (25,000) | - | - | |
Other expense appropriation not treated as departmental expense | (2,700) | - | (3,000) | - |
Total departmental expenses [as per Statement of Comprehensive Income] |
1,885,017 |
2,065,117 |
2,087,419 |
2,158,200 |
Note 4 - Capital Transfer#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Capital contribution 2007/08 | 127,585 | - | - | - |
Capital contribution transfer from 2007/08 to 2008/09 | (54,190) | 54,190 | - | - |
Capital contribution for 2008/09 | - | - | 54,930 | - |
Capital contribution transfer from 2008/09 to 2009/10 | - | - | (80,000) | 80,000 |
Capital withdrawal in 2009/10 | - | - | - | (171) |
Total |
73,395 | 54,190 | (25,070) | 79,829 |
Note 5 - Debtors and Other Receivables#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Debtor Crown | 197,738 | 141,191 | 201,245 | 3,138 |
Debtors and other receivables | 17,691 | 9,465 | 4,300 | 4,300 |
Total |
215,429 | 150,656 | 205,545 | 7,438 |
Note 6 - Inventory#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Inventory: Current | 82,820 | 104,745 | 97,827 | 105,063 |
Inventory: Non - Current | 171,355 | 194,526 | 181,679 | 195,117 |
Total |
254,175 | 299,271 | 279,506 | 300,180 |
Note 7 - Property, Plant and Equipment (PPE)#
Land $000 |
Buildings $000 |
Specialist Military Equipment $000 |
Plant & Equipment $000 |
Office & Computer Equipment $000 |
Total $000 |
|
---|---|---|---|---|---|---|
Cost or Revaluation | ||||||
Balance as at 1 July 2009 |
578,680 | 1,097,707 | 3,850,488 | 262,395 | 75,838 | 5,865,108 |
Additions by purchase | - | 72,000 | 466,651 | 33,000 | 8,000 | 579,651 |
Balance at 30 June 2010 | 578,680 | 1,169,707 | 4,317,139 | 295,395 | 83,838 | 6,444,759 |
Accumulated depreciation | ||||||
Balance as at 1 July 2009 |
- | 38,337 | 658,665 | 152,083 | 36,746 | 885,831 |
Depreciation expense | - | 34,000 | 272,733 | 15,000 | 5,000 | 326,733 |
Balance at 30 June 2010 | - | 72,337 | 931,398 | 167,083 | 41,746 | 1,212,564 |
Net PPE at 30 June 2010 | 578,680 | 1,097,370 | 3,385,741 | 128,312 | 42,092 | 5,232,195 |
The Forecast Financial Statements include the revaluation increase of $514.633 million as at 30 June 2008 for the Land, Buildings and Specialist Military Equipment asset classes that are subject to revaluation. This revaluation increase is included in opening asset class values as at 1 July 2008. It is Government policy not to budget for revaluations in asset values.
Note 8 - Intangible Assets#
Acquired software $000 |
Internally generated software $000 |
Other $000 |
Total $000 |
|
---|---|---|---|---|
Cost |
||||
Balance as at 1 July 2009 | 37,959 | - | - | 37,959 |
Additions by purchase | 5,999 | - | - | 5,999 |
Additions internally developed | - | - | - | - |
Disposals | - | - | - | - |
Balance as at 30 June 2010 |
43,958 | - | - | 43,958 |
Accumulated amortisation and impairment losses |
||||
Balance as at 1 July 2009 | 21,441 | - | - | 21,441 |
Amortisation expense | 6,000 | - | - | 6,000 |
Disposals | - | - | - | - |
Impairment losses | - | - | - | - |
Balance as at 30 June 2010 |
27,441 | - | - | 27,441 |
Carrying amount as at 30 June 2010 |
16,517 | - | - | 16,517 |
Note 9 - Other Operating Activities#
The Statement of Forecast Cash Flows include Unrealised Foreign Exchange Gains of $30.693 million as at 28 February 2009 (28 February 2008 $14.451 million).
Note 10 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Net surplus / (deficit) |
19,928 |
100 |
47,453 |
100 |
Add / (less) non cash items |
||||
Depreciation and amortisation expense | 279,755 | 349,671 | 319,844 | 332,733 |
Increase / (decrease) in the provision for stock obsolescence | 14,506 | - | - | - |
Increase / (decrease) in the provision for doubtful debts | 333 | - | - | - |
Increase / (decrease) in non-current employee entitlements | 1,082 | - | 474 | (7,017) |
Asset Write-Offs | 1,940 | - | 3,000 | - |
Realised foreign exchange gain / (loss) | (1,150) | - | - | - |
Other non cash item | - | - | 2,999 | - |
Total non-cash items |
296,466 |
349,671 |
326,317 |
325,716 |
Add / (less) items classified as investing or financing activities |
||||
(Gains) / losses on disposal of Property, Plant and Equipment | 2,376 | - | 340 | - |
Total items classified as investing or financing activities |
2,376 |
- |
340 | - |
Add / (less) movements in working capital items |
||||
(Increase) / decrease in debtors and receivables | (62,573) | 56,547 | 9,884 | 198,107 |
(Increase) / decrease in interest | - | - | - | - |
(Increase) / decrease in inventories | (21,948) | (37,074) | (25,331) | (1,600) |
(Increase) / decrease prepayments | (3,226) | 29,074 | (1,694) | - |
Increase / (decrease) in creditors and other payables | 1,594 | (5,294) | (15,595) | (8,792) |
Increase / (decrease) in GST payable | 2,367 | - | 2,570 | - |
Increase / (decrease) in provisions | (167) | - | - | - |
Increase / (decrease) in current employee entitlements | 6,025 | (5,915) | 1,394 | - |
Net movements in working capital items |
(77,928) |
37,338 |
(28,772) |
187,715 |
Net cash from operating activities |
240,842 |
387,109 |
345,338 |
513,531 |
Forecast Financial Statements Ministry of Foreign Affairs and Trade#
Statement of Forecast Comprehensive Income for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | |||
---|---|---|---|---|---|
Note | Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Income |
|||||
Crown | 292,748 | 331,091 | 325,698 | 386,807 | |
Department(s) | 12,019 | 11,731 | 12,212 | 12,819 | |
Other revenue | 3,190 | 2,260 | 2,260 | 2,080 | |
Gains | 1 | 6,017 | - | 10,000 | - |
Interest | 104 | 100 | 100 | 100 | |
Total Income | 314,078 | 345,182 | 350,270 | 401,806 | |
Expenses |
|||||
Personnel | 143,556 | 171,183 | 162,231 | 182,948 | |
Operating | 2 | 105,882 | 127,634 | 131,608 | 158,458 |
Depreciation and amortisation | 15,773 | 19,643 | 17,798 | 20,900 | |
Capital charge | 25,135 | 26,622 | 26,508 | 39,400 | |
Finance costs | - | - | - | - | |
Other | 3,056 | - | - | - | |
Total Expenses | 9 | 293,402 | 345,082 | 338,145 | 401,706 |
Net Surplus / (Deficit) | 100 | 100 | 12,125 | 100 | |
Other comprehensive income | 3 | - | - | 176,917 | - |
Total Comprehensive Income | 20,676 | 100 | 189,042 | 100 |
Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | |||
---|---|---|---|---|---|
Note | Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Balance at 1 July |
|||||
General funds | 330,987 | 348,156 | 348,421 | 358,447 | |
Revaluation reserve | - | - | - | 176,917 | |
Other reserves | - | - | - | - | |
Taxpayers' Funds Opening Balance | 330,987 | 348,156 | 348,421 | 535,364 | |
Changes in Taxpayers' Funds |
|||||
Comprehensive income for the period | 20,676 | 100 | 189,042 | 100 | |
Repayment of surplus | (22,711) | (100) | (2,099) | (100) | |
Capital contribution | 19,469 | 10,000 | - | 40,000 | |
Capital withdrawal | - | - | - | (171) | |
Other | - | - | - | - | |
Total Changes in Taxpayers' Funds | 17,434 | 10,000 | 186,943 | 39,829 | |
Balance at 30 June |
|||||
General funds | 348,421 | 358,156 | 358,447 | 398,276 | |
Revaluation reserve | - | - | 176,917 | 176,917 | |
Other reserves | - | - | - | - | |
Taxpayers' Funds Closing Balance | 348,421 | 358,156 | 535,364 | 575,193 |
Forecast Statement of Financial Position as at 30 June 2010#
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 | 66,802 | 29,253 | 25,051 | 61,314 | |
Debtors and other receivables | 4 | 36,726 | 2,004 | 49,654 | 1,883 |
Prepayments | 3,654 | 3,906 | 3,654 | 3,654 | |
Inventories | - | - | - | - | |
Other current assets | 2,622 | 18 | 12,622 | 12,622 | |
Total Current Assets | 109,804 | 35,181 | 90,981 | 79,473 | |
Non-current Assets |
|||||
Property, plant and equipment | 5 | 290,525 | 351,774 | 479,210 | 506,860 |
Intangible assets | 6 | 11,222 | 14,195 | 15,801 | 27,463 |
Other non-current assets | 2,839 | 2,278 | 2,839 | 2,839 | |
Total Non- current Assets | 304,586 | 368,247 | 497,850 | 537,162 | |
Total Assets | 414,390 | 403,428 | 588,831 | 616,635 | |
Liabilities |
|||||
Current Liabilities |
|||||
Creditors and other payables | 17,238 | 14,565 | 17,238 | 17,238 | |
Repayment of surplus | 22,711 | 100 | 12,125 | 100 | |
Employee entitlements | 13,755 | 12,673 | 13,755 | 13,755 | |
Other current liabilities | 7 | 877 | 9,017 | (1,039) | (1,039) |
Total Current Liabilities | 54,581 | 36,355 | 42,079 | 30,054 | |
Non-current Liabilities |
|||||
Provisions | - | - | - | - | |
Employee entitlements | 11,388 | 8,917 | 11,388 | 11,388 | |
Other non-current liabilities | - | - | - | - | |
Total Non-current Liabilities | 11,388 | 8,917 | 11,388 | 11,388 | |
Total Liabilities | 65,969 | 45,272 | 53,467 | 41,442 | |
Taxpayers' Funds |
|||||
General funds | 348,421 | 358,156 | 358,447 | 398,276 | |
Revaluation reserve | - | - | 176,917 | 176,917 | |
Other reserves | - | - | - | - | |
Total Taxpayers' Funds | 348,421 | 358,156 | 535,364 | 575,193 | |
Total Liabilities and Taxpayers' Funds | 414,390 | 403,428 | 588,831 | 616,635 |
Statement of Forecast Cash Flows for the year ending 30 June 2010#
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 | 257,905 | 365,934 | 312,770 | 434,578 | |
Department(s) | 12,019 | 11,731 | 12,212 | 12,819 | |
Other | 3,294 | 2,360 | 2,360 | 2,180 | |
Interest | - | - | - | - | |
Payments to: |
|||||
Suppliers | (106,379) | (128,180) | (132,110) | (158,960) | |
Employees | (143,059) | (170,637) | (161,729) | (182,446) | |
Capital charge | (25,135) | (26,622) | (26,508) | (39,400) | |
Goods and services tax (net) | 119 | - | - | - | |
Other operating activities | (1,859) | - | (1,916) | - | |
Net Cash from Operating Activities | (3,095) | 54,586 | 5,079 | 68,771 | |
Cash Flow from Investing Activities |
|||||
Receipts from: |
|||||
Sale of property, plant and equipment | 6,803 | 300 | 300 | 300 | |
Sale of intangible assets | - | - | - | - | |
Sale of other non-current assets | - | - | - | - | |
Purchase of: |
|||||
Property, plant and equipment | (19,802) | (60,180) | (27,961) | (46,246) | |
Intangible assets | (4,361) | (8,453) | (6,484) | (14,266) | |
Other non-current assets | - | - | - | - | |
Net Cash from Investing Activities | (17,360) | (68,333) | (34,145) | (60,212) | |
Cash Flow from Financing Activities |
|||||
Capital contribution | 19,469 | 10,000 | - | 40,000 | |
Other financing cash inflows | - | - | - | - | |
Repayment of surplus | (3,328) | (6,000) | (12,685) | (12,125) | |
Capital withdrawal | - | - | - | (171) | |
Other financing cash outflows | - | - | - | - | |
Net Cash from Financing Activities | 16,141 | 4,000 | (12,685) | 27,704 | |
Net Increase / (Decrease) in Cash | (4,314) | (9,747) | (41,751) | 36,263 | |
Cash at the beginning of the year | 71,116 | 39,000 | 66,802 | 25,051 | |
Cash at the end of the year | 66,802 | 29,253 | 25,051 | 61,314 |
Statement of Significant Assumptions#
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 935 full time equivalents and 420 full-time equivalents for local staff at overseas posts.
- 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.
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 Ministry of Foreign Affairs and Trade 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 Foreign Affairs and Trade, prepared in accordance with section 38 of the Public Finance Act 1989.
Ministry of Foreign Affairs and Trade is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Ministry of Foreign Affairs and Trade is a public benefit entity.
Authorisation Statement
These forecast financial statements were authorised for issue by Simon Murdoch and Paul Helm on 22 April 2009. The Ministry of Foreign Affairs and Trade 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
Going Concern
The accounting policies set out below have been applied consistently to all period presented in these statements. These statements have been prepared on a going concern basis.
Property, Plant and Equipment
Revaluations
Land and Buildings
Land and buildings are revalued at least every three years, or whenever the carrying amount differs materially to fair value. A revaluation was last completed on 31 October 2008.
Other PPE - at cost
Other property, plant and equipment, which include leasehold improvements, furniture and fittings, computer equipment, motor vehicles and office equipment, are recorded at cost less accumulated depreciation and accumulated impairment losses.
Capitalisation thresholds applied are set out below.
- Laptops and Works of Art - $2,000.
- All other property, plant and equipment - $3,000.
Depreciation
The estimated useful lives of property, plant and equipment are set out below.
- Buildings - structure 35 to 60 years.
- Buildings - fit outs - 3 to 20 years.
- Buildings - services - 3 to 20 years.
- Leasehold improvements - Period of the Ministry's expected occupancy with a maximum of 15 years.
- IT Equipment/Hardware - 3 to 8 years.
- Motor vehicles - 8 years.
- Furniture and fittings - 6 years and 8 months.
- Equipment - 4 to 20 years.
- Plant and Machinery - 10 years.
Intangible Assets
Capitalisation thresholds applied are:
- Purchased software - $5,000.
- Internally developed software - $10,000.
The estimated useful lives of intangible assets are set out below:
- Purchased software - 3 to 8 years.
- Internally developed software - 3 to 8 years.
Cost Allocation
The Ministry has determined the cost of outputs using the cost allocation system outlined below.
Definition of Terms
"Operational Cost Centre" is a unit that produces outputs. All overseas posts and regional and functional divisions in Wellington are Operational Cost Centres.
"Support Service Cost Centre" is a unit that provides Support Services to Operational Cost Centres.
"Output Allocation Factor" is a ratio calculated from an estimate of time each officer spends on producing specified outputs.
"Direct Costs" are those costs directly attributed to outputs.
"Indirect Costs" are those costs directly attributed to Operational Cost Centres.
"Corporate Costs" are those costs of Support Service Cost Centres attributed to Operational Cost Centres as overhead.
Basis for assigning Corporate Costs to Operational Cost Centres
This is a two-stage process:
(i) Reciprocal costing methodology is used to recognise the services provided between Support Services Cost Centres.
(ii) Corporate Costs are then allocated to the other Operational Cost Centres based on head count.
Corporate Costs account for approximately 15 percent (2007:15 percent) of the Ministry's costs.
Basis for allocating Indirect Costs to Outputs
Output Allocation Factors are used to allocate Indirect Costs to outputs.
Indirect Costs account for approximately 75 percent (2007:74 percent) of the Ministry's costs.
Direct Costs assigned to Outputs
Direct Costing is used mainly for Management of ODA, Trade Access Support Programmes, Overseas Visitor Programmes, Pacific Security Fund and some local staff pension schemes.
Direct Costing makes up approximately 10 percent (2007:11 percent) of the Ministry's costs.
Foreign Currency
Foreign exchange gains and losses resulting from settlement of such transactions (the difference between the rate at which the transaction was recorded and the rate and which the foreign currency for that transaction was purchased or sold) and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currency are recognised in the Statement of Financial Performance.
Transactions in foreign currencies are initially translated at the foreign exchange rate at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Financial Performance.
Non-monetary assets and liabilities measured at historical cost in a foreign currency are translated into New Zealand dollars at a foreign exchange rate which materially represents the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies and measured at fair value are translated into New Zealand dollars at the exchange rate applicable at the fair value date.
The associated foreign exchange gains or losses follow the fair value gains to the Statement of Financial Performance.
Derivatives
Derivative financial instruments are recognised both initially and subsequently at fair value. They are reported as either assets or liabilities depending on whether the derivative is in a net gain or net loss position respectively. Movements in the value of derivatives are recognised in the Statement of Financial Performance.
Revenue
Revenue is derived through the provision of outputs to the Crown and from services to third parties. Revenue from the Crown is recognised in the forecast statement of financial performance when it is drawn down from Treasury. This is applied evenly throughout the year. All other revenue is recognised in the forecast statement of financial performance when earned.
Notes to the Financial Statements#
Note 1 - Gains
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Unrealised Gain on the Remeasurement of Foreign Exchange Contracts. | 6,017 | - | 10,000 | - |
Total |
6,017 | - | 10,000 | - |
Note 2 - Operating Expenses#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Operating expenses include: | ||||
Audit fees | 405 | 276 | 307 | 305 |
Consultants' fees | 3,879 | 4,824 | 6,877 | 5,845 |
Overseas travel | 6,802 | 7,786 | 7,426 | 9,461 |
Domestic travel | 2,088 | 2,497 | 2,634 | 2,993 |
Other | 92,708 | 112,251 | 114,364 | 139,854 |
Total Operating Expenses |
105,882 | 127,634 | 131,608 | 158,458 |
Note 3 - Other Comprehensive Income#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Land and buildings were revalued at fair value as at 31 October 2008. |
- | - | 176,917 | - |
Total |
- | - | 176,917 | - |
Note 4 - Debtors and other receivables#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Debtor Crown | 34,843 | - | 47,771 | - |
Debtors other | 1,883 | 2,004 | 1,883 | 1,883 |
Total debtors and other receivables |
36,726 | 2,004 | 49,654 | 1,883 |
Note 5 - Property, Plant and Equipment#
Land $000 |
Buildings $000 |
Leasehold improvements $000 |
Furniture/office equipment $000 |
Other $000 |
Total $000 |
|
---|---|---|---|---|---|---|
Cost or revaluation |
||||||
Balance as at 1 July 2009 | 302,590 | 138,700 | 39,349 | 39,887 | 30,153 | 550,679 |
Additions by purchase | - | 31,746 | 8,000 | 3,050 | 3,450 | 46,246 |
Disposals | - | - | - | (430) | (1,070) | (1,500) |
Balance as at 30 June 2010 |
302,590 | 170,446 | 47,349 | 42,507 | 32,533 | 595,425 |
Accumulated depreciation and impairment losses |
||||||
Balance as at 1 July 2009 | - | 4,679 | 20,607 | 29,580 | 16,603 | 71,469 |
Depreciation expense | - | 7,136 | 3,634 | 4,125 | 3,401 | 18,296 |
Reverse accumulated depreciation - disposal | - | - | - | (400) | (800) | (1,200) |
Balance as at 30 June 2010 |
- | 11,815 | 24,241 | 33,305 | 19,204 | 88,565 |
Carrying amount as at 30 June 2010 |
302,590 | 158,631 | 23,108 | 9,202 | 13,329 | 506,860 |
Note 6 - Intangible Assets#
Acquired software $000 |
Internally generated software $000 |
Other $000 |
Total $000 |
|
---|---|---|---|---|
Cost |
||||
Balance as at 1 July 2009 | 15,565 | 6,851 | - | 22,416 |
Additions by purchase | 8,266 | 6,000 | - | 14,266 |
Disposals | - | (300) | - | (300) |
Balance as at 30 June 2010 |
23,831 | 12,551 | - | 36,382 |
Accumulated amortisation and impairment losses |
||||
Balance as at 1 July 2009 | 4,275 | 2,340 | - | 6,615 |
Amortisation expense | 1,404 | 1,200 | - | 2,604 |
Disposals | - | (300) | - | (300) |
Balance as at 30 June 2010 |
5,679 | 3,240 | - | 8,919 |
Carrying amount as at 30 June 2010 |
18,152 | 9,311 | - | 27,463 |
Note 7 - Other current liabilities#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Derivatives in loss - departmental | 782 | 8,148 | (1,134) | (1,134) |
Derivatives in loss - third parties | 95 | 151 | 95 | 95 |
Other | - | 718 | - | - |
Total |
877 | 9,017 | (1,039) | (1,039) |
Note 8 - Reconciliation of Net Surplus to New Cash flows from Operating Activities for the year ending 30 June 2010#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Net surplus/(deficit) | 20,676 | 100 | 12,125 | 100 |
Add/(less) non-cash items | ||||
Depreciation and amortisation expense | 15,773 | 19,643 | 17,798 | 20,900 |
Net loss (gain) on derivative financial instruments | (11,940) | - | 22,927 | - |
Remeasurement | 2,978 | - | - | - |
Total non-cash items | 6,811 | 19,643 | 40,725 | 20,900 |
Add/(less) movements in working capital items | ||||
(Inc)/Dec in debtors and other receivables | (35,786) | 34,843 | (47,771) | 47,771 |
(Inc)/Dec in prepayments | (440) | - | - | - |
Inc/(Dec) in creditors and other payables | 252 | - | - | - |
Inc/(Dec) in current provisions | 2,559 | - | - | - |
Inc/(Dec) in employee entitlements | 2,084 | - | - | - |
Net movements in working capital items | (31,331) | 34,843 | (47,771) | 47,771 |
Add/(less) movements in non-current liabilities | ||||
Inc/(Dec) in employee entitlements | 749 | - | - | - |
Net cash from operating activities | (3,095) | 54,586 | 5,079 | 68,771 |
Note 9 - Reconciliation of Departmental Expenses and Appropriations#
2007/08 | 2008/09 | 2009/10 | ||
---|---|---|---|---|
Actual $000 |
In 2008 Budget $000 |
Estimated Actual $000 |
Budgeted $000 |
|
Appropriations for output expenses | ||||
Total for Vote: MFAT | 259,801 | 307,499 | 301,280 | 363,010 |
Total for Vote: ODA | 30,626 | 37,583 | 36,865 | 38,696 |
Total appropriations for output expenses | 290,427 | 345,082 | 338,145 | 401,706 |
Adjustments | ||||
Remeasurements | 2,978 | - | - | - |
Other | (3) | - | - | - |
Total departmental expenses (as per statement of financial performance) |
293,402 | 345,082 | 338,145 | 401,706 |
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 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.
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.
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.
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.
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. |
Useful Links#
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#
Sector Overview Statement#
The External Sector consists of six Votes which are administered by four departments - the Ministry of Foreign Affairs and Trade, the Ministry of Defence, the New Zealand Defence Force (NZDF), and the New Zealand Customs Service. These departments are collectively responsible for managing most of New Zealand's official relationships with the rest of the world and protecting its security at and beyond the border.
The government's overarching goal is to grow the New Zealand economy in order to deliver greater prosperity, security and opportunities to all New Zealanders. The External Sector contributes to this goal in several ways: through its activities to reduce or manage the risks to New Zealand from global and regional insecurity and trans-national threats (a critical pre-condition underpinning economic growth and social wellbeing); through its aid to promote the security and sustainable economic growth of developing countries especially in our region; through its contributions to the development of international rules for dealing with global issues and promoting the conduct of international trade and commerce; through its work to increase the competitiveness of New Zealand business; and through its initiatives to assist the flow of people, capital, trade, technology and ideas to New Zealand to build a more competitive resource base for the economy.
The world economy is currently facing its biggest challenge in 60 years, with global economic growth and world trade in sharp decline. The departments in the External Sector will give priority to maintaining New Zealand's security and managing New Zealand's international relations through the recession, and ensuring New Zealand is well placed to take advantage of the eventual recovery. Each department will also give high priority to improving the value for money received from the resources appropriated in its Votes.
Ministry of Foreign Affairs and Trade#
The Ministry of Foreign Affairs and Trade has primary responsibility for conducting the Government's business with other countries and international organisations. It is responsible for New Zealand's network of overseas posts which provide the platform for government agencies to operate overseas. The heads of its Embassies and High Commissions are the Government's official representatives in other countries.
The Ministry's key activities to further the Government's priorities in 2009/10 are to strengthen relationships with key partner countries to support our security and economic aspirations; intensify efforts to secure the long-term security and economic growth of the South Pacific and key partner countries in the region; pursue a rich agenda of free trade agreements; lead development of a more flexible and productive model for NZ Inc agencies to support New Zealand businesses and pursue New Zealand's interests offshore.
Another priority for the Ministry is its work within the multilateral system to achieve New Zealand goals, particularly in the areas of resource diplomacy and climate change. We will participate in international climate change negotiations to ensure that New Zealand's obligations in any agreement to succeed the Kyoto Protocol maintain our competitiveness and the Government's growth agenda.
Through NZAID, the Ministry will also support sustainable economic growth in developing countries, particularly in the South Pacific, to try to reverse long-run contractionary influences and trends towards dependency, and maximising the efficiency of this support.
New Zealand Defence Force#
The NZDF's contribution to the External Sector is reflected in the deployment of some 400 NZDF personnel on over 10 different operational missions around the world in support of New Zealand's security. The most significant are in Timor-Leste, the Solomon Islands, and Afghanistan. The NZDF also contributes to the External Sector through its network of military adviser and attaché staff serving overseas.
On a day-to-day basis in New Zealand, the force elements of the NZDF train to be ready, if and when required by the Government, to ensure New Zealand's security. Preparedness for operations, wherever and whenever they may be, is the overriding priority for the NZDF.
The Government's main priority for NZDF in 2009/10 is the completion of the Defence Review leading to a White Paper in early 2010. That Review will give clarity to how the NZDF will contribute to the Government's security outcomes for the future. The other main initiatives agreed in these Estimates of Appropriations include funding to further progress key priorities and to provide for 2009/10 operating pressures. These primarily involve sustaining personnel growth, future personnel growth, operating costs and depreciation impacts associated with new equipment.
The NZDF, through Veterans' Affairs New Zealand, is responsible for providing a range of service to veterans. It contributes to the External Sector by ensuring veterans are recognised for their service and that the impacts of service on veterans and their dependents are monitored and addressed. This indirectly contributes to the ongoing recruitment and retention of high quality NZDF personnel. The Government's intent underpinning policy related to veterans is “Respecting Veterans, Honouring Service”. This is supported and implemented by initiatives aligned with the broader principles of:
- Respecting Veterans
- Strengthening Communities
- Dignity for older New Zealanders.
Ministry of Defence#
The roles and functions of the Ministry of Defence are established by the Defence Act 1990. The Ministry contributes to the External Sector by working to ensure that New Zealand is secure and that the security of other nations is enhanced by New Zealand's efforts. It does this through its statutory duty to give advice to the Government on issues relating to New Zealand's defence policy, doctrine, military capabilities and deployments of the NZDF and its responsibility for acquiring major items of equipment for the NZDF and for providing independent audits of the NZDF functions, duties and projects.
The Government has commissioned a Defence Assessment under section 24(2)(c) of the Defence Act 1990. This assessment will review overall defence policy and a number of other aspects of Defence management, including procurement. It will inform the White Paper on defence policy which is scheduled to be published in 2009/10.
New Zealand Customs Service#
Customs contributes to the External Sector through its lead role in managing New Zealand's border interests. The effective management of New Zealand's borders plays a key role in making trade easy, thereby supporting the competitive advantage of New Zealand exporters, as well as contributing to New Zealand's security.
Customs provides policy advice on customs aspects of New Zealand's trade negotiations and agreements. It works closely to provide support for other Customs administrations, including capacity-building in the Pacific, by working with NZAID and other organisations such as the Australian Customs and Border Protection Service, the Oceania Customs Organisation and the World Customs Organisation.
Customs also works with the Ministry of Defence and the NZDF to protect New Zealand from major external threats, particularly through the National Maritime Coordination Centre, which coordinates whole-of-government maritime patrol and surveillance assets and related information for civilian purposes.
The Government's three priorities for Customs in 2009/10 are to advance integration of trans-Tasman border clearance; to develop and implement the Joint Border Management System and Trade Single Window; and to increase interceptions of illicit drugs and precursor materials entering New Zealand.
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 External 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 Murray McCully
Responsible Minister for the Ministry of Foreign Affairs and Trade
22 April 2009
Hon Dr Wayne Mapp
Responsible Minister for the Ministry of Defence
Responsible Minister for the New Zealand Defence Force
22 April 2009
Hon Maurice Williamson
Responsible Minister for the New Zealand Customs Service
22 April 2009
Chief Executive Statements of Responsibility#
Ministry of Foreign Affairs and Trade#
In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the External Sector relating to the Ministry of Foreign Affairs and Trade and for the Votes for which the Ministry of Foreign Affairs and Trade is the administering department. Specifically, this information is contained in the Ministry of Foreign Affairs and Trade'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.
Simon Murdoch
Secretary of Foreign Affairs and Trade
Ministry of Foreign Affairs and Trade
22 April 2009
Paul Helm
Director of Finance
Ministry of Foreign Affairs and Trade
22 April 2009
Counter-signed
Ministry of Defence#
In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the External Sector relating to the Ministry of Defence and for the Vote for which the Ministry of Defence is the administering department. Specifically, this information is contained in the Ministry of Defence'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.
John McKinnon
Secretary of Defence
Ministry of Defence
22 April 2009
Bryan Westbury
Deputy Secretary (Finance)/Chief Financial Officer
Ministry of Defence
22 April 2009
Counter-signed
New Zealand Defence Force#
In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the External Sector relating to the New Zealand Defence Force and for the Votes for which the New Zealand Defence Force is the administering department. Specifically, this information is contained in the New Zealand Defence Force'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.
J Mateparae
Lieutenant General
Chief of Defence Force
New Zealand Defence Force
22 April 2009
M Horner
Corporate Financial Officer
New Zealand Defence Force
22 April 2009
Counter-signed
New Zealand Customs Service#
In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the External Sector relating to the New Zealand Customs Service and for the Vote for which the New Zealand Customs Service is the administering department. Specifically, this information is contained in the New Zealand Customs Service'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.
Martyn Dunne
Comptroller of Customs
New Zealand Customs Service
22 April 2009
John Kyne
Chief Financial Officer
New Zealand Customs Service
22 April 2009
Counter-signed
Performance Information for Appropriations Vote Customs#
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Customs (M21)
ADMINISTERING DEPARTMENT: New Zealand Customs Service
MINISTER RESPONSIBLE FOR NEW ZEALAND CUSTOMS SERVICE: Minister of Customs
Part 1 - Summary of the Vote#
Part 1.1 - Overview of the Vote
The Minister of Customs is responsible for the efficient and timely collection of Crown revenue forecast to be $9,785 million in the 2009/10 financial year.
The Minister of Customs is also responsible for the appropriations in the Vote for the 2009/10 financial year covering the following:
- a total of over $8 million on policy advice
- a total of over $4 million on intelligence and risk assessment services
- a total of over $43 million on clearance of international passengers, crew and craft
- a total of over $44 million on clearance of import, export and excise transactions
- a total of nearly $2 million on technical advisory services
- a total of over $3 million on revenue collection, accounting and debt management
- a total of nearly $7 million on surveillance, search and containment
- a total of nearly $1 million on National Maritime Co-ordination Centre
- a total of over $10 million on investigations of offences
- a total of nearly $1 million on prosecutions and civil proceedings.
Details of these appropriations are set out in Parts 2-6 below.
Part 1.2 - High-Level Objectives of the Vote#
The New Zealand Customs Service (Customs) contributes to the Government's goal to deliver greater prosperity, security and opportunities to all New Zealanders.
Customs plays its part in delivering greater prosperity for New Zealanders through its role as one of the lead agencies facilitating international trade and travel - managing the risks associated with international trade and travel while not imposing undue cost or delay on legitimate trade and travel - and by collecting approximately 15% of total Crown revenue.
Customs is also a key participant in trade negotiations, providing specialist assistance to the Ministry of Foreign Affairs and Trade to ensure straightforward and consistent customs processes and minimal transaction costs for our exporters and trading partners.
Through its role at the border, Customs manages security and law enforcement risks arising from trans-national organised crime (which includes the importation of illicit drugs and precursor materials, and the trading of other illicit goods).
Customs is responsible for major elements of New Zealand's border infrastructure that are relied on by many other agencies to meet their objectives at the border, including the main border management system. Customs is leading a multi-agency effort to develop more integrated border processes, and to reduce regulatory and compliance demands on those using the border. This includes development of a new border management system to be used by border agencies.
Consistent with, and to deliver on, these Government outcomes, Customs has agreed three priorities with the Minister of Customs on which to focus in 2009/10. These are:
- advance integration of trans-Tasman border clearance
- develop and implement the Joint Border Management System and Trade Single Window (an electronic portal that provides an interface between industry and government agencies)
- increase interceptions of illicit drugs and precursor materials entering New Zealand.
The following table shows how the day-to-day delivery of Customs' Output Expenses, for which appropriations are sought, are linked and contribute to the Government's priorities and the Government outcomes relevant to Customs.
Contribution of Appropriations to Government Priorities and Outcomes#
Appropriations | Government Priorities | Government Outcomes |
---|---|---|
Policy Advice. Clearance of International Passengers, Crew and Craft. Clearance of Import, Export and Excise Transactions. |
Trans-Tasman facilitation. Develop and implement the Joint Border Management System and Trade Single Window. Increase interceptions of illicit drugs and precursor materials entering New Zealand. |
Greater prosperity:
|
Intelligence and Risk Assessment Services. Revenue Collection, Accounting and Debt Management. Investigation of Offences. Prosecutions and Civil Proceedings. |
Trans-Tasman facilitation. Increase interceptions of illicit drugs and precursor materials entering New Zealand. |
Greater prosperity:
|
Surveillance, Search and Containment. National Maritime Coordination Centre. |
Increase interceptions of illicit drugs and precursor materials entering New Zealand. | Greater security:
|
Technical Advisory Services. | Trans-Tasman facilitation. Develop and implement the Joint Border Management System and Trade Single Window. |
Greater prosperity:
|
Part 1.3 - Trends in the Vote#
Summary of Financial Activity#
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 | 95,668 | 105,623 | 110,411 | 118,306 | 125,426 | 123,426 | 124,289 | - | 124,289 | 129,522 | 129,358 | 129,358 |
Benefits and Other Unrequited Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Other Expenses | 38 | - | 52 | 536 | 2,063 | 2,063 | - | 2,088 | 2,088 | 2,088 | 2,088 | 2,088 |
Capital Expenditure | - | - | - | 5,153 | 6,500 | 6,500 | 21,301 | - | 21,301 | 8,100 | 7,250 | 8,000 |
Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
Total Appropriations |
95,706 | 105,623 | 110,463 | 123,995 | 133,989 | 131,989 | 145,590 | 2,088 | 147,678 | 139,710 | 138,696 | 139,446 |
Crown Revenue and Capital Receipts |
||||||||||||
Tax Revenue | 7,565,000 | 8,395,111 | 8,870,885 | 9,255,680 | 9,608,000 | 9,608,000 | N/A | 9,785,000 | 9,785,000 | 10,148,000 | 10,710,000 | 11,354,000 |
Non-Tax Revenue | 120 | 104 | 132 | 270 | 80 | 80 | N/A | 80 | 80 | 80 | 80 | 80 |
Capital Receipts | - | - | - | - | - | - | N/A | - | - | - | - | - |
Total Crown Revenue and Capital Receipts |
7,565,120 | 8,395,215 | 8,871,017 | 9,255,950 | 9,608,080 | 9,608,080 | N/A | 9,785,080 | 9,785,080 | 10,148,080 | 10,710,080 | 11,354,080 |
New Policy Initiatives#
Policy Initiative | Appropriation | 2008/09 Budgeted $000 |
2009/10 Budget $000 |
2010/11 Estimated $000 |
2011/12 Estimated $000 |
2012/13 Estimated $000 |
---|---|---|---|---|---|---|
Automated Passenger Clearance | Clearance of International Passengers, Crew and Craft (M21) Departmental Output Expenses |
- | 1,854 | 4,375 | 4,375 | 4,375 |
Departmental Capital Injection | - | 7,511 | - | - | - | |
Savings from rationalisation of support functions and rephasing expenditure across financial years | Clearance of Import, Export and Excise Transactions (M21) Departmental Output Expenses |
- | (881) | (46) | (46) | (46) |
Clearance of International Passengers, Crew and Craft (M21) Departmental Output Expenses |
- | (1,353) | (455) | (455) | (455) | |
Intelligence and Risk Assessment Services (M21) Departmental Output Expenses |
- | (50) | (6) | (6) | (6) | |
Investigation of Offences (M21) Departmental Output Expenses |
- | (76) | (9) | (9) | (9) | |
National Maritime Co-ordination Centre (M21) Departmental Output Expenses |
- | (100) | - | - | - | |
Policy Advice (M21) Departmental Output Expenses |
- | (232) | (204) | (204) | (204) | |
Prosecutions and Civil Proceedings (M21) Departmental Output Expenses |
- | (6) | - | - | - | |
Revenue Collection, Accounting and Debt Management (M21) Departmental Output Expenses |
- | (34) | (4) | (4) | (4) | |
Surveillance, Search and Containment (M21) Departmental Output Expenses |
- | (67) | (8) | (8) | (8) | |
Technical Advisory Services (M21) Departmental Output Expenses |
- | (51) | (68) | (68) | (68) | |
Total Initiatives | - | 6,515 | 3,575 | 3,575 | 3,575 |
Analysis of Significant Trends#
Crown Revenue
Crown revenue is collected through customs duties and GST on imports and excise on alcoholic beverages, tobacco, and petroleum products. Figure 1 notes the proportion of collections by category of Crown revenue forecast to be collected in 2009/10.
Figure 2 illustrates growth in Crown revenue collected by category.
Departmental Output Expenses
Annual appropriations for the purchase of departmental outputs are expected to decrease by $1.137 million for 2009/10 compared with 2008/09. The net change in the total appropriation is primarily as a result of $2.850 million of savings identified as a result of the Value for Money line-by-line review exercise and the discontinuation of one-off funding provided in 08/09 for border management systems scoping and new trade agreements projects. This is offset by an increase in funding of $1.854 million to commence the implementation of automated passenger processing technology.
Trends in comparative actual and estimated expenses for Output Expense appropriations under this Vote are shown in Figure 3 below.
The increase in output expenses in 2010/11 and future years is primarily as a result of the implementation of automated passenger processing technology.
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Outcome: Protection New Zealand is protected, at the border, from the entry, or exit, of people, craft, or goods, and Maori taonga and other treasured items, where the entry or exit may pose a material risk to our national interests. |
|
Outcome: Facilitation New Zealand's economic, social, environmental, and cultural interests are sustained and enhanced by facilitating the flow of legitimate trade, travel, and goods, and Maori taonga and other treasured items, across the border. |
|
Outcome: Revenue Due Customs revenue is collected to support Government social, economic and fiscal objectives. |
|
Clearance of Import, Export and Excise Transactions (M21)
Scope of Appropriation
Expenses and Revenue
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 44,856 | 44,100 | 44,497 |
Revenue from Crown | 7,453 | 7,453 | 6,758 |
Revenue from Other | 37,403 | 33,903 | 37,739 |
Output Performance Measures and Standards
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Trade transactions (estimated between 3.9-4.8 million import transactions and 2.8-3.1 million export transactions) are processed. | N/A | N/A | 100% trade transactions risk assessed. 95% trade transactions (other than those referred for compliance checks) processed (including assessment against business rules and intelligence alerts) within 30 minutes. 95% of import transactions are deemed compliant and proceed without further interventions. 99% of export transactions are deemed compliant and proceed without further interventions. 40%-50% of container exports to USA represented by Secure Exports Scheme (SES) partners. |
Mail items (estimated between 65-68 million) are processed | N/A | N/A | 310,000-370,000 mail items are referred for compliance checks. 10%-14% mail compliance checks resulting in enforcement consequences. |
Trade Compliance programmes for imports, exports and excise are in place and operating as planned. | N/A | N/A | At least $15 million additional revenue. Secure Exports Scheme continues to comply with the requirements of the Supply Chain Security Arrangement with USA. 4,800-5,300 excise returns validated. 1,000-1,100 field audit activities. 20,000-40,000 transactional audit activities. |
Current and Past Policy Initiatives
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (881) | (46) | (46) | (46) |
Inter-Agency Resource Needs for Trade Agreements. | 2008/09 | 485 | - | - | - | - |
Customs Wellington Head Office Relocation and Modernisation. | 2007/08 | 932 | 932 | 932 | 932 | 932 |
Customs Border Management Systems Replacement Programme. | 2007/08 | 770 | 770 | 770 | 770 | 770 |
Establishment of a Customs Position in Washington DC. | 2005/06 | 466 | 466 | 466 | 466 | 466 |
Remuneration and organisational development. | 2005/06 | 3,836 | 3,836 | 3,836 | 3,836 | 3,836 |
Customs' Cargo X-Ray Capability. | 2004/05 | 17,364 | 17,364 | 17,364 | 17,364 | 17,364 |
Clearance of International Passengers, Crew and Craft (M21)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 41,365 | 40,800 | 43,313 |
Revenue from Crown | 40,011 | 40,011 | 42,389 |
Revenue from Other | 1,354 | 1,354 | 924 |
Reasons for Change in Appropriation#
The increase in the appropriation is largely due to additional funding for the implementation of automated passenger processing technology.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
All international travellers (estimated between 9.6-10 million) are risk assessed. | N/A | N/A | 100% arriving international travellers are risk assessed. |
All compliant international travellers are facilitated within agreed time standards. | N/A | N/A | A minimum of 90% of arriving international air passengers exit Customs Primary processing points within 45 minutes of arrival. A minimum of 98% of arriving international air passengers exit Customs Primary processing points within 60 minutes of arrival. 98% or more of arriving international air passengers are deemed compliant and facilitated without further interventions. |
All international air and marine passengers identified as risks are subject to interventions. | N/A | N/A | At least 99.9% of air and marine passengers subject to an alert are processed in accordance with the alert instruction. 1.1%-1.5% of arriving international air passengers selected for risk assessment at Customs' secondary areas. 30%-40% of arriving international air passengers selected for further risk assessment subsequently subject to a full or partial baggage examination. 20%-30% of interventions resulting from further risk assessment result in an enforcement consequence. |
Commercial marine craft arriving and departing (estimated between 4,950-5,250) are processed. | 100% of arriving commercial marine craft boarded at first port of arrival in New Zealand. | 100% | 100% of commercial marine craft arriving are boarded at first port of arrival. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (1,353) | (455) | (455) | (455) |
Automated Passenger Clearance. | 2009/10 | - | 1,854 | 4,375 | 4,375 | 4,375 |
Passenger Processing Facilities at Auckland International Airport. | 2008/09 | 210 | 210 | 210 | 210 | 210 |
Customs Border Management Systems Replacement Programme. | 2007/08 | 415 | 415 | 415 | 415 | 415 |
Customs Wellington Head Office Relocation and Modernisation. | 2007/08 | 640 | 640 | 640 | 640 | 640 |
Remuneration and organisational development. | 2005/06 | 5,454 | 5,454 | 5,454 | 5,454 | 5,454 |
Enhanced border security capability for the New Zealand Customs Service in the air and marine environments. | 2004/05 | 6,667 | 6,667 | 6,667 | 6,667 | 6,667 |
Enhancing Customs and Immigration systems integration. | 2004/05 | 178 | 178 | 178 | 178 | 178 |
Funding to Relieve Congestion at Auckland and Christchurch Airports. | 2004/05 | 4,800 | 4,800 | 4,800 | 4,800 | 4,800 |
Intelligence and Risk Assessment Services (M21)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 4,363 | 4,285 | 4,214 |
Revenue from Crown | 4,277 | 4,277 | 4,114 |
Revenue from Other | 86 | 86 | 100 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
External clients' satisfaction with intelligence and risk products (estimated between 1,700-1,900) disseminated by Customs. | 80% minimum external national and international clients satisfied. | Annual survey not yet completed. | At least 80% of external clients satisfied. |
External clients' satisfaction with Customs' management of alerts created by the other agencies (estimated between 18,000-22,000). | N/A | N/A | At least 80% of external clients satisfied. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (50) | (6) | (6) | (6) |
Customs Wellington Head Office Relocation and Modernisation. | 2007/08 | 96 | 96 | 96 | 96 | 96 |
Implementing a Data Match for Student Loans. | 2006/07 | 98 | 98 | 98 | 98 | 98 |
Remuneration and organisational development. | 2005/06 | 567 | 567 | 567 | 567 | 567 |
Investigation of Offences (M21)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 10,431 | 10,200 | 10,324 |
Revenue from Crown | 10,102 | 10,102 | 10,042 |
Revenue from Other | 329 | 329 | 282 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Investigation cases are commenced (estimated between 1,400-2,000) and finalised. |
A minimum of 90% of investigation cases finalised within 12 months of commencement. | 85% | An estimated minimum 75% of investigation cases finalised within 12 months of commencement. |
Serious offences will be investigated to significantly reduce the potential harm to New Zealand. | N/A | N/A | At least 90% of drug investigation cases where an interception of a Class A Controlled Drug or significant community- harm occurred or is suspected to occur will identify offenders. At least 95% of offenders in cases of Class A Controlled Drug or significant community-harm interceptions will be placed before the courts, where Customs has a mandate to prosecute. At least 90% of investigation cases of revenue and goods clearance offences will identify offenders. At least 95% of offenders in cases of revenue and goods clearance offences will be placed before the courts, where Customs has a mandate to prosecute. At least 90% of investigation cases of harm-related commodities will identify offenders. At least 95% of offenders in cases of harm-related commodities will be placed before the courts, where Customs has a mandate to prosecute. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (76) | (9) | (9) | (9) |
Customs Wellington Head Office Relocation and Modernisation. | 2007/08 | 206 | 206 | 206 | 206 | 206 |
Remuneration and organisational development. | 2005/06 | 929 | 929 | 929 | 929 | 929 |
National Maritime Co-ordination Centre (M21)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 662 | 600 | 755 |
Revenue from Crown | 651 | 651 | 755 |
Revenue from Other | 11 | 11 | - |
Reasons for Change in Appropriation#
The increase in the appropriation is due to the 2008 budget initiative relating to National Maritime Coordination Centre (NMCC) Staff and Information Systems.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Available patrol and surveillance assets are allocated to meet civilian demand. | N/A | N/A | 100% civilian demand met where assets are available. |
Satisfaction of requesting agencies and assets providers with National Maritime Coordination Centre's coordination of tasking. | A minimum of 90% satisfaction in relation to responsiveness, transparency, and prioritisation. | Annual survey not yet completed. | At least 90% satisfaction in relation to responsiveness, transparency, and prioritisation. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (100) | - | - | - |
National Maritime Coordination Centre (NMCC) Staff and Information Systems. | 2008/09 | 284 | 399 | 456 | 446 | 446 |
Customs' People Capability. | 2007/08 | 6 | 6 | 6 | 6 | 6 |
Policy Advice (M21)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 10,801 | 10,600 | 8,292 |
Revenue from Crown | 9,157 | 9,157 | 7,419 |
Revenue from Other | 1,644 | 1,644 | 873 |
Reasons for Change in Appropriation#
The decrease in the appropriation is largely due to savings as a result of the value for money line-by-line review exercise, discontinuation of one-off funding in 2008/09 for Stage 1 and Stage 2 JBMS Business case and implementation of Free Trade Agreement and updated costing allocations.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Policy advice is provided to the Minister on:
|
N/A | N/A | Policy work programme and international work programme are advanced as agreed or subsequently amended by agreement between the Minister and Chief Executive during the year. Compliance with Customs' quality standards for policy advice and international work programme (as set out in the Conditions of Use), as assessed by the Minister, meets and sometimes exceeds expectations. Policy papers assessed by external reviewer (NZIER) maintain or better a median score of 7.5 out of 10. |
Draft replies to ministerial correspondence are provided within agreed timeframes from time of receipt by Customs. | 90% draft replies to ministerial correspondence will be provided to the Minister within 20 working days from the time of receipt by Customs or as agreed with the Minister. | 97.4% | 90% draft replies to ministerial correspondence will be provided to the Minister within 20 working days from the time of receipt by Customs or as agreed with the Minister. |
100% draft replies to ministerial correspondence will be provided to the Minister within 30 working days from the time of receipt by Customs or as agreed with the Minister. |
100% | 100% draft replies to ministerial correspondence will be provided to the Minister within 30 working days from the time of receipt by Customs or as agreed with the Minister. |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Dimensions for quality for policy advice | |
Purpose | The objective for the advice is clearly stated; it answers issues raised by the Minister and demonstrates a clear understanding of the desired outcome(s) of the Government and/or the Minister. |
Problem definition | Any policy problem, including the underlying causes, size and materiality of issues, is identified and supported by data or other evidence. |
Context | There is a clear and logical statement of the issue or problem and why it necessitates Ministerial action. |
Logic | An appropriate analytical framework is used. The assumptions behind the advice are explicit and the argument is logical and supported by facts. |
Accuracy | All facts are present and accurate. The facts are based on reliable research, evaluation findings or other appropriate information. Known gaps that could significantly affect the conclusions are identified and the range of uncertainty is stated. |
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. Reasons are given in cases when it is not appropriate to use a range of options. |
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 | Thorough and timely consultation has been carried out with other government departments and interested parties. Their views, including objections, are incorporated as appropriate. |
Practicality | Issues of implementation, technical feasibility, practicality and timing are considered. The advice accurately identifies political, legislative, compliance, transitional, legal, machinery of government, or other issues or risks that require management. |
Communication | Guidance is provided on how communications arising from decisions on the advice should be handled. This includes identifying which key stakeholders should be informed and how. |
Presentation | Material is presented to suit the audience and:
|
Note - Not all aspects of the standards may apply to specific pieces of policy advice, given considerations of urgency or the particular nature of the advice to be provided.
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (232) | (204) | (204) | (204) |
Scoping of Cross-Agency Border Management Trade Single Window. | 2008/09 | 1,000 | - | - | - | - |
Customs' Border Management Systems Replacement Programme. | 2007/08 | 720 | - | - | - | - |
Customs Wellington Head Office Relocation and Modernisation. | 2007/08 | 242 | 242 | 242 | 242 | 242 |
Remuneration and organisational development. | 2005/06 | 434 | 434 | 434 | 434 | 434 |
Customs' Cargo X-Ray Capability. | 2004/05 | 100 | 100 | 100 | 100 | 100 |
Growth and Innovation Framework (GIF). | 2004/05 | 750 | 750 | 750 | 750 | 750 |
Prosecutions and Civil Proceedings (M21)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 707 | 701 | 744 |
Revenue from Crown | 695 | 695 | 727 |
Revenue from Other | 12 | 12 | 17 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Decisions on prosecutions and other resolutions are taken in accordance with professional standards. | N/A | N/A | All prosecutions are conducted in accordance with the Solicitor-General's guidelines for prosecutions. Other resolutions are administered in accordance with legal requirements and relevant professional guidelines. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (6) | - | - | - |
Customs Wellington Head Office Relocation and Modernisation. | 2007/08 | 19 | 19 | 19 | 19 | 19 |
Remuneration and organisational development. | 2005/06 | 81 | 81 | 81 | 81 | 81 |
Revenue Collection, Accounting and Debt Management (M21)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 3,282 | 3,250 | 3,352 |
Revenue from Crown | 3,018 | 3,018 | 3,071 |
Revenue from Other | 264 | 264 | 281 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Revenue collected on behalf of the Crown. | $9,418 million | $9,608 million | $9,785 million, as advised by Treasury. |
Revenue collected for other agencies. | $335 - $350 million (for 5 agencies) |
$340 million | $335 - $350 million, as advised by agencies involved. |
Revenue collected efficiently and with minimum compliance costs. | N/A | N/A | Over 95% collected electronically. Over 98% revenue collected on due date. Over 8,000 clients that meet credit criteria have access to the deferred payment scheme. |
The integrity of the revenue collection system is maintained in a cost-effective manner. | N/A | N/A | Value of aged debt and dishonours collected is at least $6 million or over 8 times the cost of operating the Customs National Credit Control Unit. Debt write-offs as % total revenue collected in that year is no more than 0.02%. 95% of debt over 3 months old is reviewed at least 4 times a year. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (34) | (4) | (4) | (4) |
Customs Wellington Head Office Relocation and Modernisation. | 2007/08 | 87 | 87 | 87 | 87 | 87 |
Remuneration and organisational development. | 2005/06 | 403 | 403 | 403 | 403 | 403 |
Customs' Cargo X-Ray Capability. | 2004/05 | 94 | 94 | 94 | 94 | 94 |
Surveillance, Search and Containment (M21)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 7,116 | 7,090 | 6,947 |
Revenue from Crown | 6,949 | 6,949 | 6,810 |
Revenue from Other | 167 | 167 | 137 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Arriving vessels are risk assessed. | N/A | N/A | 100% of arriving vessels are risk assessed. At least 95% of vessels risk assessed as high or very high will be targeted. At least 5% of all arriving commercial vessels will be targeted. At least 80% of targeted responses carried out in accordance with the intelligence-directed recommendations based on level of risk. 135-165 operational responses completed. |
Routine patrol and surveillance is carried out. | N/A | N/A | At least 80% of planned patrol and surveillance days are completed. Patrols and surveillance are carried out in accordance with the patrol and surveillance plans for each location. |
Event readiness exercises (estimated between 5-10) are subject to agreed plans and/or guidelines and debriefed with agencies involved. | Yes | Yes | 100% of event readiness exercises subject to agreed plans or guidelines and debriefed. |
Operational support is provided to external agencies. | N/A | N/A | At least 6 multi-agency targeted operations undertaken. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (67) | (8) | (8) | (8) |
Customs Wellington Head Office Relocation and Modernisation. | 2007/08 | 95 | 95 | 95 | 95 | 95 |
Remuneration and organisational development. | 2005/06 | 823 | 823 | 823 | 823 | 823 |
Technical Advisory Services (M21)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 1,843 | 1,800 | 1,851 |
Revenue from Crown | 161 | 161 | 215 |
Revenue from Other | 1,682 | 1,682 | 1,636 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Classification and concession rulings made (estimated between 200-300) are issued within time standards. |
A minimum of 90% of classification and concession rulings will be issued within 20 working days of lodgement of all necessary information. |
96.9% | At least 90% of classification and concession rulings will be issued within 20 working days of lodgement of all necessary information. |
Rulings given and not appealed or taken to appeal and sustained. | N/A | N/A | A minimum of 95% |
Number of calls responded to by the National Call Centre. | 99,900-123,000 | 99,800 | 99,900-123,000 |
Availability of public information. | A minimum of 99% availability on a 24 hours a day, 7 days a week basis of the Customs' 0800 telephone number and the Customs' website. | 99.9% | At least 99% availability on a 24 hours a day, 7 days a week basis of the Customs' 0800 telephone number and the Customs' website. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Savings from rationalisation of support functions and rephasing expenditure across financial years. | 2009/10 | - | (51) | (68) | (68) | (68) |
Customs Wellington Head Office Relocation and Modernisation. | 2007/08 | 61 | 61 | 61 | 61 | 61 |
Remuneration and organisational development. | 2005/06 | 184 | 184 | 184 | 184 | 184 |
Part 5 - Details and Expected Results for Other Expenses#
Part 5.2 - Non-Departmental Other Expenses#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Objective: To manage debts owed to the Crown and to minimise the impact on Crown Revenue of debts owed to the Crown. | Change in Doubtful Debt Provision. |
Objective: To meet international obligations and participate in, and contribute to, the international customs community. | World Customs Organisation. |
Change in Doubtful Debt Provision (M21)
Scope of Appropriation
Expenses
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 2,000 | 200 | 2,000 |
World Customs Organisation (M21)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 63 | 63 | 88 |
Reporting Mechanisms#
Appropriation | Reporting Mechanism |
---|---|
Change in Doubtful Debt Provision. | Annual Report of New Zealand Customs Service. |
World Customs Organisation. | Annual Report of New Zealand Customs Service. |
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 or Objectives of Appropriations | Appropriations |
---|---|
Objective: To maintain and upgrade capability through the maintenance and replacement of assets. | New Zealand Customs Service - Capital Expenditure PLA. |
New Zealand Customs Service - Capital Expenditure PLA (M21)
Scope of Appropriation
Capital Expenditure
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Forests/Agricultural | - | - | - |
Land | - | - | - |
Property, Plant and Equipment | 5,100 | 5,100 | 17,413 |
Intangibles | 1,400 | 1,400 | 3,888 |
Other | - | - | - |
Total Appropriation |
6,500 | 6,500 | 21,301 |
Forests/Agricultural | - | - | - |
Land | - | - | - |
Property, Plant and Equipment | 5,100 | 5,100 | 17,413 |
Intangibles | 1,400 | 1,400 | 3,888 |
Other | - | - | - |
Total Appropriation |
6,500 | 6,500 | 21,301 |
Reasons for Change in Appropriation
The 2009/10 budgeted capital expenditure includes $7.300 million for upgrades of accommodation and passenger processing infrastructure along with the routine replacement and upgrade of plant and equipment. It is expected that
$6.500 million will be committed to enable the fit-out of the Wellington Customhouse to be advanced. The move to the new building is scheduled for 2010/11. A further $7.500 million is allocated to the development and installation of automated Trans-Tasman passenger systems.
Performance Information for Appropriations Vote Defence#
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Defence (M22)
ADMINISTERING DEPARTMENT: Ministry of Defence
MINISTER RESPONSIBLE FOR MINISTRY OF DEFENCE: Minister of Defence
Part 1 - Summary of the Vote#
Part 1.1 - Overview of the Vote
The Minister of Defence is responsible for appropriations in the Vote for the 2009/10 financial year covering the following:
- a total of nearly $2 million for audits and assessments of the New Zealand Defence Force and Ministry of Defence
- a total of nearly $4 million for managing procurement or refurbishment, on behalf of the Crown, of various items of equipment contributing to a capability of the New Zealand Defence Force
- a total of nearly $4.700 million for policy advice, management of international defence relations and services to the Minister
- a total of just over $369 million for the purchase, modification, or refurbishment of major items of defence equipment for the New Zealand Defence Force.
Details of these appropriations are set out in Parts 2-6 below.
Part 1.2 - High-Level Objectives of the Vote#
Link to Government Priorities#
The high level outcome for Vote Defence is to ensure that New Zealand is secure and the security of other nations is enhanced by New Zealand's efforts.
A secure New Zealand is a critical pre-condition to economic growth and social well-being. New Zealanders need to live free from physical threat from external parties to be able to achieve their aspirations. As well, New Zealand's security is directly affected by the security of other countries, by the stability of other regions and by the maintenance of multilateral systems that ensure stability and security.
An essential part of the Ministry's business, therefore, lies in understanding events in the international environment because these affect the demands likely to be placed on our Defence Force now and in the future, and thus inform the Ministry's statutory duty to give advice to the Government on issues relating to New Zealand's defence policy, doctrine, military capabilities and deployments of the New Zealand Defence Force. The Ministry is also statutorily responsible for acquiring major items of equipment for the New Zealand Defence Force and for providing independent audits of the New Zealand Defence Force functions, duties and projects.
The Government has commissioned a Defence assessment under Section 24(2)(c) of the Defence Act 1990. The assessment will establish defence policy objectives and a number of other aspects of Defence management, including procurement. This assessment is scheduled to be completed by March 2010. It will inform a White Paper on defence policy which is also scheduled to be published in 2009/10.
New Zealand's Defence Policy Objectives#
The current Defence policy objectives are:
- To defend New Zealand and to protect its people, land, territorial waters, exclusive economic zone, natural resources and critical infrastructure.
- To meet New Zealand's alliance commitments to Australia by maintaining a close defence partnership in pursuit of common security interests.
- To assist in the maintenance of security in the South Pacific and to provide assistance to New Zealand's Pacific neighbours.
- To play an appropriate role in the maintenance of security in the Asia Pacific region, including meeting New Zealand's obligations as a member of the Five Power Defence Arrangements.
- To contribute to global security and peacekeeping through participation in the full range of United Nations and other appropriate multilateral peace support and humanitarian relief operations.
The following table shows how the delivery of the Ministry of Defence's output expenses and capital expenditure, for which appropriations are sought, are linked and contribute to the Government's priorities and outcomes for Defence.
Contribution of Appropriations to Government Priorities and Outcomes#
Appropriations | Government Priorities | Government Outcomes |
---|---|---|
Departmental Output Expenses Audit and Assessment of Performance Management of Equipment Procurement Policy Advice |
Policy Theme: NZ is secure | High Level Outcome New Zealand is secure and the security of other nations is enhanced by New Zealand's efforts. Intermediate Level Outcomes The New Zealand identifies all credible military threats to its security environment. New Zealand's military capabilities are aligned with our requirements. New Zealand's defence relationships are aligned with our security interests and foreign policy goals. New Zealand's military deployments support our regional and wider international objectives. |
Non Departmental Capital Expenditure Defence Equipment |
Policy Theme: NZ is secure | High Level Outcome New Zealand is secure and the security of other nations is enhanced by New Zealand's efforts. Intermediate Level Outcome The New Zealand identifies all credible military threats to its security environment. New Zealand's military capabilities are aligned with our requirements. New Zealand's defence relationships are aligned with our security interests and foreign policy goals. New Zealand's military deployments support our regional and wider international objectives. |
Part 1.3 - Trends in the Vote#
Summary of Financial Activity#
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 | 8,529 | 8,450 | 9,006 | 9,476 | 11,342 | 11,342 | 10,511 | - | 10,511 | 9,801 | 9,801 | 9,801 |
Benefits and Other Unrequited Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Other Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Capital Expenditure | 313,468 | 415,478 | 471,597 | 279,995 | 281,352 | 227,414 | 245 | 369,004 | 369,249 | 241,472 | 38,496 | 3,917 |
Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
Total Appropriations |
321,997 | 423,928 | 480,603 | 289,471 | 292,694 | 238,756 | 10,756 | 369,004 | 379,760 | 251,273 | 48,297 | 13,718 |
Crown Revenue and Capital Receipts |
||||||||||||
Tax Revenue | - | - | - | - | - | - | N/A | - | - | - | - | - |
Non-Tax Revenue | 237 | 570 | 754 | 578 | 400 | 400 | N/A | 400 | 400 | 400 | 400 | 400 |
Capital Receipts | 282,357 | 395,882 | 509,267 | 253,230 | 228,583 | 228,583 | N/A | 442,791 | 442,791 | 230,272 | 169,138 | 4,604 |
Total Crown Revenue and Capital Receipts |
282,594 | 396,452 | 510,021 | 253,808 | 228,983 | 228,983 | N/A | 443,191 | 443,191 | 230,672 | 169,538 | 5,004 |
New Policy Initiatives#
Policy Initiative | Appropriation | 2008/09 Budgeted $000 |
2009/10 Budget $000 |
2010/11 Estimated $000 |
2011/12 Estimated $000 |
2012/13 Estimated $000 |
---|---|---|---|---|---|---|
Defence Review 09 | Policy Advice | 290 | 710 | - | - | - |
Acquisition resources | Management of Equipment Procurement | 200 | 200 | 200 | 200 | |
Training Light Utility Project | Non Departmental Capital Expenditure | 82,066 | 5,604 | 48,100 | 3,496 | - |
Defence Command and Control System | Non Departmental Capital Expenditure | 13,952 | 7,000 | 1,469 | 461 | 3,632 |
ANZAC Platform System Upgrade | Non Departmental Capital Expenditure | 2,296 | 3,965 | 1,146 | 1,743 | - |
Analysis of Significant Trends#
The departmental appropriations in Vote Ministry of Defence, which are detailed in the Summary of Financial Activity table in Part 1.3 above, show the significant changes discussed below.
Departmental Output Expense Appropriations
Significant movements over this time period are:
- The total increase of $79,000 between 2004/05 and 2005/06 is mainly due to an increase of $57,000 in the cost of contributions to employee retirement schemes.
- The total increase of $556,000 between 2005/06 and 2006/07 is mainly due to an increase of $158,000 in depreciation and capital charge on the Aitken Street building and expenditure of $396,000 on the Defence Capability Resourcing Review.
- The total increase of $470,000 between 2006/07 and 2007/08 is mainly due to an increase of $448,000 in expenditure on the Defence Capability Resourcing Review.
- The total increase of $1.866 million between 2007/08 and 2008/09 is mainly due to and increase of $290,000 for the Defence Review 09 and an increase of $1.399 million on pre-acquisition costs.
- The total decrease of $831,000 between 2008/09 and 2009/10 is mainly due to an increase of $200,000 for additional project management resources, a further $420,000 to total $710,000 on the Defence Review 2009, and a reduction of $1.451 million in pre-acquisition costs. Pre-acquisition costs for years beyond 2009/10 and beyond are provided for in the appropriations of NZDF.
- The reduction of $710,000 in funding between 2009/10 and 2010/11 is mainly due to the completion of the Defence Review 09 in 2009/10 and cessation of associated one-off funding of $710,000 for that financial year.
- There is no movement in the appropriation currently planned for years 2010/2011 to 2012/13.
Departmental Capital Expenditure
The majority of the capital expenditure over the years relates to the Ministry of Defence's contribution towards the construction of the new Defence House in Aitken Street in Wellington. Other capital expenditure relates primarily IT software and equipment identified as new and replacement items required by the Ministry to deliver its stated outcomes and outputs.
Non-Departmental Capital Expenditure
The movements in capital expenditure in each of the years 2004/05 to 2012/13 relates to the volume of projects underway in each financial year and changes in the forecast timing of achievement of project milestones and associated changes in the timing of payments for those milestones.
Capital Receipts
The Ministry of Defence receives Capital Receipts from the New Zealand Defence Force from the sale of defence equipment. Changes in Capital Receipts during the years 2004/05 to 2008/09 reflect the number, structure and scope of the projects undertaken on behalf of the Crown during the same time period. Years 2009/2010 to 2012/13 reflect the anticipated number, structure and scope of the projects to be undertaken on behalf of the Crown during the same time period.
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
An approved schedule of audits and assessments is satisfactorily completed, and other audits and assessments are conducted as required by the Minister of Defence. | Audit and Assessment of Performance |
Military assets are procured on behalf of the Crown and transferred to the New Zealand Defence Force. Warranty issues which arise from the procurement of assets are well managed. Industry receives advice on defence requirements facilitating effective communication to enable opportunities for New Zealand industry to provide goods and services as required and receive opportunities to compete for work consistent with government procurement policies. |
Management of Equipment Procurement |
Government receives advice on significant issues that have an impact on defence policy and international relations. Capability reviews in cooperation with the New Zealand Defence Force identify options for achieving the Government's defence policy goals. International defence relationships with Australia and other regional countries and participation in regional multilateral security dialogues contribute to New Zealand's security. |
Policy Advice |
Audit and Assessment of Performance (M22)
Scope of Appropriation
Expenses and Revenue
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 1,921 | 1,921 | 1,909 |
Revenue from Crown | 1,854 | 1,854 | 1,842 |
Revenue from Other | 67 | 67 | 67 |
Reasons for Change in Appropriation
A small amount of cost savings have been identified within Audit and Assessment of Performance.
Output Performance Measures and Standards
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Delivery of a target number of audit reports to the Minister of Defence. | 15 -18 | 17 | 15-18 |
Reports will be of quality, timeliness and effectiveness that is acceptable to key stakeholders. | Achieved | Achieved | Achieved |
Audits will be performed in accordance with the Ministry's Auditing Standards. | Achieved | Achieved | Achieved |
Conditions on Use of Appropriation
Reference | Conditions |
---|---|
Auditing Standards for Audits and Assessments of Performance |
|
Scope and Objectives | The audit or assessment will have clear scope and objectives. |
Relevance | The audit or assessment will be selected on the basis of relevance and risk to the Minister and the New Zealand Defence Force or the Ministry. |
Focus | The audit or assessment will have suitable criteria that focus the work and provide a basis for developing observations and conclusions. |
Evidence | The audit or assessment will have sufficient appropriate evidence to support the content of the report. |
Objectivity | The audit or assessment will involve objective evaluation of the evidence against criteria to develop observations and conclusions. |
Recommendations | The audit or assessment will include recommendations that will, if implemented, add value, improve efficiency and effectiveness, or ameliorate risk. |
Management of Equipment Procurement (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 5,179 | 5,179 | 3,933 |
Revenue from Crown | 3,660 | 3,660 | 3,865 |
Revenue from Other | 1,519 | 1,519 | 68 |
Reasons for Change in Appropriation#
It is anticipated that there will be no costs incurred in the 2009/10 year associated with the Protector procurement project. Included in the changes is an increase of $200,000 to the costs for additional resources in Management of Equipment Procurement.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
New equipment procurement or refurbishment projects will be managed:
|
Achieved | Achieved | Achieved |
To reduce the average project schedule overrun. | - | - | 10% |
Confirmation by the Defence Industry Committee of New Zealand that the Ministry of Defence and its agent, the Industry Capability Network has adequately promoted domestic suppliers capabilities to overseas based prime contractors. | Confirmation Received | Confirmation Received | Confirmation Received |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Quality Standards for Equipment Procurement |
|
Recommendations | Recommendations are clear, and logical. They are sufficient to enable a decision to be made on a proposal or move to the next decision/action point. |
Options | A range of options is presented that provide 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 possible to use a range of options the reasons are clearly stated. |
Consultation | Evidence of thorough and timely consultation with other government departments and interested parties is presented, and their views, including objections, incorporated as appropriate. |
Quality Standards for the promotion of domestic suppliers capabilities |
|
Consultation | Evidence of thorough and timely consultation with other government departments and interest parties is presented. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Pre Acquisition Costs | 2004/05 | 1,451 | - | - | - | - |
Additional Project Management Resources | 2008/09 | 200 | 200 | 200 | 200 |
Policy Advice (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 4,242 | 4,242 | 4,669 |
Revenue from Crown | 4,174 | 4,174 | 4,601 |
Revenue from Other | 68 | 68 | 68 |
Reasons for Change in Appropriation#
Appropriation will increase 2009/10 due to the additional costs associated with undertaking and finalising the Defence review.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Submission of policy papers for the Minister including Cabinet papers. | 24-30 | 24-30 | - |
Prepare Ministerial correspondence for the Minister. | 35-55 | 35-55 | - |
Prepare answers to Parliamentary questions for the Minister. | 90-100 | 90-100 | - |
Prepare answers to Select Committee questions for the Minister. | 20-30 | 20-30 | - |
The supply of individual policy papers will be of high quality, which will be assessed by the percentage of first drafts of all policy papers accepted by the Minister. | 90% | 90% | 90% |
Submission of policy papers for the Ministers including Cabinet papers which will be of high quality and which will be assessed by the percentage of all policy papers substantially meeting the Minister and Associate Ministers requirements. | N/A | 90% | 90% |
Prepare Ministerial correspondence for the Minister which will be of high quality and which will be assessed by the percentage of first drafts of all correspondence accepted by the Ministers. | N/A | 90% | 90% |
Prepare answers to Parliamentary questions for the Ministers which will be of high quality and which will be assessed by the percentage of first drafts of all questions accepted by the Ministers. | N/A | 90% | 90% |
Prepare answers to Select Committee questions for the Minister which will be of high quality and which will be assessed by the percentage of first drafts of all answers accepted by the Minister. | N/A | 90% | 90% |
The supply of all other responses will be of high quality, which will be assessed by the percentage of responses accepted without substantive amendment. | 95% | 95% | 95% |
All reports and oral advice will be delivered within the agreed or statutory time frame. Ministerials within 14 working days of receipt of the request, replies to Parliamentary Questions for Written Answer provided by the due date, and replies to Parliamentary Questions for oral answer provided by midday on the day that the reply is due in the House. | Achieved | Achieved | Achieved |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Quality Standards for Analysis and Advice |
|
Purpose | The objective for the advice is clearly stated, it answers any defence and security issues raised by the Minister and demonstrates a clear understanding of the desired outcome(s) of the Government and/or the Minister. |
Problem definition | Any public policy problem, including the underlying causes, size and materiality of issue, 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. |
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 possible to use a range of options the reasons are clearly stated. |
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 budgetary implications identified. |
Presentation | Material is presented to suit the target audience and:
|
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Defence Capability and Resourcing Review - Improved Organisational Capability | 2005/06 | 844 | 844 | 844 | 844 | 844 |
Defence Review 09 and white paper | 2008/09 | 290 | 710 | - | - | - |
Part 6 - Details and Expected Results for Capital Expenditure#
Part 6.1 - Departmental Capital Expenditure#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Maintain and upgrade capability through routine replacement of the Ministry's information technology and office equipment. | Ministry of Defence - Capital Expenditure PLA |
Ministry of Defence - Capital Expenditure PLA (M22)
Scope of Appropriation
Capital Expenditure
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Forests/Agricultural | - | - | - |
Land | - | - | - |
Property, Plant and Equipment | 300 | 300 | 125 |
Intangibles | 75 | 75 | 120 |
Other | - | - | - |
Total Appropriation |
375 | 375 | 245 |
Forests/Agricultural | - | - | - |
Land | - | - | - |
Property, Plant and Equipment | 300 | 300 | 125 |
Intangibles | 75 | 75 | 120 |
Other | - | - | - |
Total Appropriation |
375 | 375 | 245 |
Reasons for Change in Appropriation
The decrease in appropriation for 2009/10 is due to the timing for upgrades and replacement of information technology infrastructure.
Part 6.2 - Non-Departmental Capital Expenditure#
Intended Impacts, Outcomes and Objectives#
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Maintain and/or upgrade military capability through upgrades or procurement of new defence equipment for the New Zealand Defence Force. | Defence Equipment |
Defence Equipment (M22)#
Scope of Appropriation
Capital Expenditure
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 280,977 | 227,039 | 369,004 |
Reasons for Change in Appropriation
The appropriation for Defence Equipment varies depending upon the number and scope of projects.
Conditions on Use of Appropriation
Reference | Conditions |
---|---|
Defence Act 1990 | Section 24 |
Quality Standards for Defence Equipment | |
|
Equipment procurement, modification and refurbishment projects will be managed within the approved budget and to the quality standards negotiated for each project. |
|
A range of options are considered that provides clearly differentiated choices and these are rigorously evaluated. Costs, benefits, consequences, and risks/opportunities of the options are assessed as part of the analysis. |
|
Issues of implementation, technical feasibility, practicality and timing are accurately identified and addressed. |
Current and Past Policy Initiatives
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 |
---|---|---|---|---|---|---|
ANZAC Platform Systems Upgrade | 2008/09 | 7,921 | 480 | 286 | 1,323 | - |
Defence Control and Command System | 2008/09 | 5,258 | 10,692 | 2,400 | 900 | 3,632 |
Training Light Utility Helicopter | 2008/09 | 17,140 | 39,803 | 32,390 | 20,159 | - |
ANZAC Close in Weapon System | 2006/07 | 6,055 | 7,943 | 2,836 | 0 | - |
C-130 Life Extension | 2006/07 | 32,879 | 15,236 | 9,993 | 3,290 | - |
Medium Utility Helicopter Capability | 2006/07 | 89,478 | 226,783 | 151,648 | 305 | - |
B757 Acquisition and Modification | 2005/06 | 36,289 | - | - | - | - |
P-3 Mission Management, Communication and Navigation Systems Upgrade | 2004/05 | 34,154 | 68,067 | 41,829 | 12,234 | - |
Project Protector | 2004/05 | 35,865 | - | - | - | - |
Reporting Mechanisms#
Appropriation | Reporting Mechanism |
---|---|
Defence Equipment | Annual Report of the Ministry of Defence |
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 Defence Force#
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Defence (M22)
ADMINISTERING DEPARTMENT: New Zealand Defence Force
MINISTER RESPONSIBLE FOR NEW ZEALAND DEFENCE FORCE: Minister of Defence
Part 1 - Summary of the Vote#
Part 1.1 - Overview of the Vote
The Minister of Defence is responsible for appropriations in Vote Defence Force, totalling just over $2,827 million, for the 2009/10 financial year covering the following:
- a total of just over $2,037 million on the Navy, Army, and Air Force to provide the Government with a range of military forces to protect and advance the security and interests of New Zealand. These forces are held at appropriate levels of capability and preparedness to protect New Zealand's territorial sovereignty and to contribute to regional and global security efforts. Most of these forces will also contribute a range of services to other government departments and the New Zealand community when not committed to operations overseas. The breakdown of appropriations, by Service, is as follows:
- Navy: just under $634 million
- Army: just over $791 million
- Air Force: just over $612 million
- a total of just under $82 million on Operationally Deployed Forces
- a total of just over $17 million on a Multi-Class Output Appropriation (MCOA), Miscellaneous Support Activities, that includes New Zealand Defence Force support to the Mutual Assistance Programme, the New Zealand Cadet Forces, the Limited Service Volunteer Scheme (a service provided to the Ministry of Social Development) and Service Military Museums
- a total of just over $13 million on military policy development, coordination and advice to the Government
- a Capital Expenditure appropriation of just under $678 million for the purchase of assets, including items on the Defence Long-Term Development Plan.
The New Zealand Defence Force expects to recognise about $24 million in third-party revenue (Revenue Department and Revenue Other) in 2009/10.
Details of these appropriations are set out in Parts 2-6 below.
Part 1.2 - High-Level Objectives of the Vote#
Defence Act 1990#
Under the Defence Act 1990, New Zealand's Armed Forces are raised and maintained for:
- the defence of New Zealand and the protection of its interests, whether in New Zealand or elsewhere
- the contribution of forces under collective security treaties, agreements or arrangements
- the contribution of forces to the UN or other organisations or States for operations in accordance with the principles of the charter of the UN.
The Defence Act 1990 also allows the Armed Forces to be made available for the performance of public services and assistance to the civil power in time of emergency, either in New Zealand or elsewhere.
Primary Mission of the New Zealand Defence Force#
The primary mission of the NZDF remains:
"To secure New Zealand against external threat, to protect our sovereign interests, including in the Exclusive Economic Zone, and to be able to take action to meet likely contingencies in our strategic area of interest".
The following table shows how the day to day delivery of NZDF Output Expenses, for which appropriations are sought, are linked and contribute to the Government's Priorities and Outcomes for Defence.
Contribution of Appropriations to Government Priorities and Outcomes#
Appropriations | Government Priorities | Government Outcomes |
---|---|---|
Departmental Appropriations: Military Policy Development, Coordination and Advice For Navy: Naval Combat Forces (the two ANZAC class frigates) Naval Support Forces (Amphibious Sealift Ship and Fleet Replenishment Ship) Mine Counter Measure (MCM) and MCM Diving Forces (MCM Vessel and Operational Diving Team) Naval Patrol Forces (the two Offshore and four Inshore Patrol Vessels) Military Hydrography, and Hydrographic Data Collection and Processing for Land Information New Zealand For Army: Land Combat Forces [command and control, intelligence and manoeuvre force elements (infantry and reconnaissance)] Land Combat Support Forces (artillery, engineers, communications and military police) Land Combat Service Support Forces (transport, medical, supply, repair and movements) Special Operations Forces (special land operations, counter-terrorist operations, and forces to deal with chemical, biological, radiological and explosive improvised explosive devices) |
Key Priorities: The key priorities for Defence for 2009/10, with contributions from the NZDF as applicable, are:
|
Main Outcome: New Zealand secure and protected from external threats now and in the future. Intermediate Outcomes:
|
For Air Force: Naval Helicopter Forces (five Seasprite SH-2G maritime helicopters) Maritime Patrol Forces (six P-3K Orion surveillance aircraft) Fixed Wing Transport Forces (two Boeing 757 and five C-130 Hercules Aircraft) Rotary Wing Transport Forces (fourteen UH-1H Iroquois helicopters) |
||
Others: Operationally Deployed Forces (operational commitments as approved by the Government) Miscellaneous Support Activities (support to the Mutual Assistance Programme, New Zealand Cadet Forces, Limited Service Volunteers, and Service Military Museums) |
Part 1.3 - Trends in the Vote#
Summary of Financial Activity#
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 | 1,522,510 | 1,657,820 | 1,814,698 | 1,879,436 | 2,099,297 | 2,099,297 | 2,149,823 | - | 2,149,823 | 2,143,909 | 2,146,279 | 2,145,783 |
Benefits and Other Unrequited Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Other Expenses | - | - | 1,665 | - | 3,340 | 3,340 | - | - | - | - | - | - |
Capital Expenditure | 338,619 | 428,827 | 611,993 | 356,586 | 388,366 | 388,366 | 677,852 | - | 677,852 | 354,747 | 341,301 | 254,869 |
Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
Total Appropriations |
1,861,129 | 2,086,647 | 2,428,356 | 2,236,022 | 2,491,003 | 2,491,003 | 2,827,675 | - | 2,827,675 | 2,498,656 | 2,487,580 | 2,400,652 |
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#
Policy Initiative | Appropriation | 2008/09 Budgeted $000 |
2009/10 Budget $000 |
2010/11 Estimated $000 |
2011/12 Estimated $000 |
2012/13 Estimated $000 |
---|---|---|---|---|---|---|
Defence Funding Package - Year 5 [To provide for the recognition of the Budget 2009 element of a Budget 2005 agreement to restore military and organisational capability through eventual new funding as a charge against future budgets]. |
Military Policy Development, Coordination and Advice Departmental Output Expense |
- | 1,472 | 1,472 | 1,472 | 1,472 |
Naval Combat Forces Departmental Output Expense |
- | (38,623) | (31,756) | (31,756) | (31,756) | |
Naval Support Forces Departmental Output Expense |
- | (5,979) | (4,119) | (4,119) | (4,119) | |
Mine Countermeasures (MCM) and MCM Diving Forces Departmental Output Expense |
- | (11,444) | (11,145) | (11,145) | (11,145) | |
Naval Patrol Forces Departmental Output Expense |
- | 12,046 | 13,948 | 13,948 | 13,948 | |
Military Hydrography, and Hydrographic Data Collection and Processing for LINZ Departmental Output Expense |
- | 323 | 416 | 416 | 416 | |
Land Combat Forces Departmental Output Expense |
- | 14,910 | 22,197 | 22,197 | 22,197 | |
Land Combat Support Forces Departmental Output Expense |
- | 12,086 | 15,957 | 15,957 | 15,957 | |
Land Combat Service Support Forces Departmental Output Expense |
- | 16,304 | 19,446 | 19,446 | 19,446 | |
Special Operations Forces Departmental Output Expense |
- | 7,970 | 9,594 | 9,594 | 9,594 | |
Naval Helicopter Forces Departmental Output Expense |
- | (3,122) | (1,974) | (1,974) | (1,974) | |
Maritime Patrol Forces Departmental Output Expense |
- | 6,362 | 8,501 | 8,501 | 8,501 | |
Fixed Wing Transport Forces Departmental Output Expense |
- | 21,820 | 24,228 | 24,228 | 24,228 | |
Rotary Wing Transport Forces Departmental Output Expense |
- | 14,811 | 15,889 | 15,889 | 15,889 | |
Miscellaneous Support Activities Departmental MCOA |
- | 3,064 | 3,064 | 3,064 | 3,064 | |
Sub Total | - | 52,000 | 85,718 | 85,718 | 85,718 | |
Savings to meet Operationally Deployed Force Pressures. | Military Policy Development, Coordination and Advice Departmental Output Expense |
(14) | - | - | - | - |
(Baseline savings identified to contribute to the costs of Operationally Deployed Forces in 2008/09 and 2009/10). | Naval Combat Forces Departmental Output Expense |
(9,287) | - | - | - | - |
Naval Support Forces Departmental Output Expense |
(2,851) | - | - | - | - | |
Mine Countermeasures (MCM) and MCM Diving Forces Departmental Output Expense |
(680) | - | - | - | - | |
Naval Patrol Forces Departmental Output Expense |
(2,449) | - | - | - | - | |
Military Hydrography, and Hydrographic Data Collection and Processing for LINZ Departmental Output Expense |
(141) | - | - | - | - | |
Land Combat Forces Departmental Output Expense |
(7,556) | - | - | - | - | |
Land Combat Support Forces Departmental Output Expense |
(4,479) | - | - | - | - | |
Land Combat Service Support Forces Departmental Output Expense |
(3,616) | - | - | - | - | |
Special Operations Forces Departmental Output Expense |
(1,783) | - | - | - | - | |
Naval Helicopter Forces Departmental Output Expense |
(1,523) | - | - | - | - | |
Maritime Patrol Forces Departmental Output Expense |
(2,309) | - | - | - | - | |
Fixed Wing Transport Forces Departmental Output Expense |
(2,396) | - | - | - | - | |
Rotary Wing Transport Forces Departmental Output Expense |
(916) | - | - | - | - | |
Sub Total | (40,000) | - | - | - | - | |
Funding for Operationally Deployed Forces | Operationally Deployed Forces Departmental Output Expense |
24,390 | 31,863 | - | - | - |
Sub Total | 24,390 | 31,863 | - | - | - | |
Total Initiatives | (15,610) | 83,863 | 85,178 | 85,178 | 85,178 |
Analysis of Significant Trends#
Total Vote: All Appropriations
The departmental appropriations in Vote Defence Force, which are detailed in the Summary of Financial Activity table in Part 1.3 above, show the significant changes discussed below.
Departmental Output Expense Appropriations
The following changes are noted:
- The total increase of $135 million between 2004/05 and 2005/06 was primarily made up from: increases from the first year (2005/06) DSI funding package allocation and Project Protector operating costs of some $64 million; a transfer from 2004/05 to 2005/06 of $19 million; an asset revaluation of $37 million; and a decrease from the transfer of $7 million to the Multi-Year Appropriation (MYA) Operationally Deployed Forces.
- The total increase in annually appropriated output expenses of almost $157 million between 2005/06 and 2006/07 is shown in the following table:
Item | $ million |
---|---|
DSI Funding Package (2006/07) | 73 |
Project Protector funding | 26 |
New Defence House funding | 5 |
Expense Transfer from 2004/05 to 2005/06 | (19) |
Operation Enduring Freedom funding transfer to MYA | (11) |
Capital Charge adjustments for 2006/07, including rate reduction to 7.5% | (3) |
2006/07 Capital Charge savings (rate-related) | 2 |
Depreciation Impact of 30 June 2006 Asset Revaluation | 42 |
Gross Capital Charge Impact of 20 June 2006 Asset Revaluation | 33 |
Absorb 0.001% Capital Charge savings ex Rate Change 2006 March Baseline Update | (5) |
Reinstate prior transfers from MYA | 10 |
Transfer Depreciation savings to 2007/08 Capital Injection | (10) |
Operationally Deployed Forces - MYA phasing difference | 13 |
Miscellaneous | 1 |
Total | 157 |
- The total increase in annually appropriated output expenses of $65 million between 2006/07 and 2007/08 is shown in the following table:
Item | $ million |
---|---|
2006/07 Surplus | 6 |
DSI Funding Package (2007/08) | 58 |
Project Protector increment | 29 |
Transfer Depreciation Savings | 10 |
Technical Adjustment (mainly Capital Charge) | 2 |
Expense Transfer to 2008/09 from 2007/08 | (68) |
Operationally Deployed Forces (Phasing Differences) | 34 |
2007/08 Surplus on Outputs | (6) |
Total | 65 |
- The major items that contributed to the $220 million increase in annual departmental output expense appropriations between 2007/08 and 2008/09 are shown in the following table:
Item | $ million |
---|---|
DSI Funding Package (2008/09) | 69 |
Expense Transfer (comparative) 2007/08 decrease | 68 |
Expense Transfer (comparative) 2008/09 increase | 68 |
Project Protector increment | 8 |
2007/08 Output Surplus | 7 |
Capital Charge - historic technical changes | 6 |
Response to Joint Working Group - Concerns of Vietnam Veterans - in 2007/08 only | (1) |
Historic Transfers to MYA (Operationally Deployed Forces) from Annual Expenses | (2) |
Operationally Deployed Forces - Difference between MYA ($71 million) in 2007/08 and Annual in 2008/09 ($79 million) | 8 |
Project KiwImage (All of Government Imagery Purchase) | 1 |
Capital Charge for 30 June 2008 Asset Revaluation | 33 |
Expense Transfer from 2008/09 to 2009/10 | (10) |
Return of 2008/09 Savings to the Crown | (40) |
Revised Tax Treatment for 2008/09 | 1 |
Miscellaneous Revenue differences | 4 |
Total | 220 |
Other Expenses
- The Other Expense appropriation of $1.665 million in 2006/07, by way of a write-off, was a technical adjustment to provide for asset-related costs held on the NZDF balance sheet to be written off by 30 June 2007, in accordance with Audit New Zealand advice.
- An Other Expense of $2.700 million, for expensing by 30 June 2008, related to the disposal cost of items included in the NZDF Statement of Financial Position, in accordance with Audit New Zealand advice.
Comparison: 2008/09 with 2009/10
Departmental Output Expenses
As advised in this Vote since 2005/06, funding for the Output Expense Operationally Deployed Forces was placed under a three-year, Multi-Year Appropriation (MYA) for the period 2005/06 - 2007/08. From 1 July 2008 Operationally Deployed Forces has been appropriated on an annual basis.
Appropriations for the purchase of NZDF outputs for the year ending 30 June 2010 include the following Cabinet-agreed departmental output expense funding changes that were considered during the 2009 Budget process:
- An increase of $52 million in 2009/10, and $85.718 in outyears, being the fifth year funding package under the Defence Sustainability Initiative (DSI). This increase in funding will go towards, primarily, sustainment of personnel growth, future personnel growth, operating costs, depreciation impacts associated with new equipment, and continuation of the maintenance upgrade of NZDF infrastructure.
- Baseline savings of $40 million identified in 2008/09 to contribute to the costs of Operationally Deployed Forces in 2008/09 and 2009/10.
- An increase of $24.390 million in 2008/09 and $31.863 in 2009/10 for Operationally Deployed Forces expenses.
- Expense Transfer of $10 million from 2008/09 to 2009/10 to provide for 2009/10 operating pressures.
- An increase of $1.700 million in 2008/09 and $6.900 million in 2009/10 and out years to meet costs that will result from an IRD review of tax treatment for non-operational allowances paid to NZDF personnel serving overseas.
The annual departmental output expense appropriations sought for Vote Defence Force in 2009/10 exceed those for 2008/09 by about $50 million. The major items and values that contribute to this increase are shown in the following table:
Item | $ million |
---|---|
Expense Transfer (comparative) from 2007/08 into 2008/09 only | (68) |
Verification Service Levy Transfer in 2009/10 | (1) |
Transfer Residual MYA from 2007/08 into 2008/09 only for Operationally Deployed Forces | (7) |
Miscellaneous Operationally Deployed Forces difference | 1 |
2008/09 Savings returned to the Crown | 40 |
Expense Transfer (2008/09 decrease) | 10 |
Expense Transfer (2009/10 increase) | 10 |
Revised Tax Treatment increase over 2008/09 | 5 |
Supplementary Operationally Deployed Forces funding | 8 |
Defence Funding Package (Budget 2009) | 52 |
Total | 50 |
Other Expenses
- Disposal costs, as an Other Expense of $3 million, should it be necessary, for the expensing, by 30 June 2009, of costs included in the NZDF Statement of Financial Position.
Capital Expenditure
- The Capital Expenditure appropriations shown in the Trends table between 2004/05 and 2012/13 disclose the annual payments for equipment purchases under the Defence Long-Term Development Plan (LTDP) to be made to the Ministry of Defence, and for NZDF managed capital projects.
Outyears: 2010/11 - 2012/13
Subject to the outcomes of Defence Review 2009, there are no significant forecast changes for the outyears 2010/11 - 2012/13.
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives
Most of the NZDF's day-to-day activities in New Zealand, and for which it is funded, are designed to prepare the force elements of the Navy, Army and Air Force to contribute to operations as approved by the Government of the day. This makes the NZDF different from most other government departments in that those departments, in their day-to-day activities, are actually delivering their 'end product' (their services), whereas the NZDF's ultimate 'end product' is the effective contribution of NZDF force elements to operational missions - through the NZDF Output Expense 'Operationally Deployed Forces' and, in the New Zealand environment, 'Multi-Agency Operations and Tasks (MAO&T)'. The focus of what the NZDF does, therefore, is primarily geared to this ultimate 'end product' or goal. The impacts that the NZDF is striving to achieve through the delivery of current NZDF Outputs are shown in the following table:
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
NZDF contributions to Government-approved operational missions and deployments is of a high standard in terms of personnel and equipment; personnel and equipment that is Ready, Combat Capable, Deployable, and Sustainable. |
Operationally Deployed Forces |
On-going and improved advice to Government in the areas of:
|
Military Policy Development, Coordination and Advice |
Enhanced military capability of the Force Elements of the Navy, Army and Air Force:
|
Naval Combat Forces Naval Support Forces Mine Countermeasures (MCM) and MCM Diving Forces Naval Patrol Forces Military Hydrography, and Hydrographic Data Collection and Processing for Land information New Zealand (LINZ) Land Combat Forces Land Combat Support Forces Land Combat Service Support Forces Special Operations Forces Naval Helicopter Forces Maritime Patrol Forces Fixed Wing Transport Forces Rotary Wing Transport Forces |
Continued high quality support to NZDF miscellaneous activities, namely: |
Multi-Class Output Appropriation (MCOA) |
|
Miscellaneous Support Activities |
NZDF Performance Information
Prior to detailing the expected performance of each of the NZDF's Output Expenses [including the Multi-Class Output Appropriation (MCOA)] for which appropriations are sought, it is necessary to provide information on three essential elements of the NZDF's performance measurement process. This information is necessary for a proper understanding of the performance indicators and performance rating scale, used under the NZDF's Operational Preparedness and Reporting System (OPRES), and Employment Contexts which, together, form the basis against which 13 of the NZDF's 16 Output Expenses are assessed. Rather than repeating this information against every one of the relevant 13 Output Expenses, it is recorded here to refer back to, as required. The information is contained under the next few headings.
Indicative Key Performance Indicators and Performance Measures
The table that follows shows the indicative Key Performance Indicators (KPIs) and Performance Measures used for all Force Elements of the Navy, Army and Air Force. These are applicable to all NZDF Output Expenses relating to the Navy, Army and Air Force which appear later in this part of the Information Supporting the Estimates of Appropriations. The table is indicative as the actual measures used by each of the Services do vary slightly; this reflects that the Navy and Air Force are primarily based on platforms, whereas the Army is based more on personnel. The Service-specific KPIs are detailed in appropriate NZDF directives.
Within the NZDF Operational Preparedness and Reporting System (OPRES), the performance of all force elements is assessed against the four elements of Preparedness of Readiness, Combat Viability, Deployment and Sustainability. Within each of these elements, measures are applied to, predominately, personnel and equipment - as shown in the following table:
Key Performance Indicators | Performance Measures |
---|---|
Readiness: |
|
Directed Level of Capability (DLOC) Establishment Filled | % of Unit's DLOC Establishment that is filled |
Personnel Continuity | % of personnel turnover (quarterly basis) |
Key Personnel Appointments Filled Over Time | % of key appointments filled by qualified personnel |
Equipment Serviceability | % of Unit Establishment platforms/equipments that are serviceable |
Individual and Unit Level Training Completed | % of individual/unit Readiness Training Activities (RTA) completed within reporting period |
Mission Critical Platform/Combat System/DLOC Aircraft Availability | % of programmed operating time in which the ship's platform/combat systems were available/% of DLOC aircraft available |
Sufficiency of Readiness Training Activities (RTA) Equipments, Expendable Stocks and Munitions | % of stocks and live/practice munitions available for required Readiness Training Activities |
Combat Viability: |
|
Adequacy of Tactics, Techniques and Procedures | % mission success and element survivability enabled by tactics, techniques and procedures |
Collective Proficiency in Employment Context (EC) Tasks | % of collective/joint/ combined exercises covering EC essential tasks completed |
Standardisation | The degrees of interoperability allowed by the level of standardization with international friendly forces for the EC Mission Essential Tasks (METs). [Measured as defined by the North Atlantic Treaty Organisation (NATO), Air Standardisation Interoperability Council (ASIC) and American, British, Canadian, Australian (ABCA) Armies Standardisation Programme |
Mission Critical Equipment Operational Viability or Suitability | % mission success enabled (or restrictions on mission) by technology or equipment performance |
Equipment Reliability for Mission Critical Systems | % degradation of EC essential tasks at OLOC operating tempo due to equipment reliability |
Deployability: |
|
EC Specific Operational Level of Capability (OLOC) Generation and Contingency Plans | Plans distributed, reviewed and validated current (annually) |
Critical Equipment Deficiency Correction within Response Time | % of Critical Deficiencies that can be corrected within Response Time (RT) |
Sufficiency of Deployment Expendable Stocks and Munitions | % of live/practice munitions and stocks available for OLOC generation and retention, including the Operational Viability Period (OVP) |
Serviceability and Availability of OLOC Generation Equipments | % of OLOC generation equipments serviceable and available |
Availability of OLOC Generation Personnel | % of Personnel available for OLOC generation |
Sustainability: |
|
Availability of Replacement Personnel | % of Service personnel to provide for sustainment |
Key Equipment Repairability | % of operating time during which Force Element availability is degraded at OLOC operating tempo by repair times |
Availability of Sustainment Equipment, Stocks and Munitions | % of sustainment equipment, stocks and munitions avail or obtainable within RT + OVP |
Availability of Replacement Equipment | % of replacement equipment avail or obtainable within RT + OVP |
Materiel Supply Times | % of operating time during which Force Element availability is degraded at OLOC operating tempo by supply times. |
Ability to Achieve and Sustain Operating Tempo to Achieve Tactical Objectives | % operating tempo able to sustain throughout duration of deployment (due to aircraft/equipment serviceability and availability). |
NZDF Operational Preparedness and Reporting System (OPRES) Performance Rating Scale
The following Performance Rating Scale is used, within OPRES, to quantify Force Element performance in achieving preparedness relative to the Directed Level of Operational Capability (DLOC). These rating scale definitions are used within the Output Expense tables that follow:
Rating | Meaning |
---|---|
P1 |
Fully Prepared. It means that the standards required for all measurement areas, under OPRES, have been achieved by between 90 to 100% |
P2 |
Substantially Prepared. The force element requires minimal resource input such that the Response Time is projected to be extended by up to the order of 33% in the applicable Employment Context (EC). It means that the standards required for all measurement areas, under OPRES, have been achieved by between 80 and 89% |
P3 |
Partially Prepared. The force element requires a substantial resource input such that the Response Time is projected to be extended by a period in the order of between 34% and 50% in the applicable EC. It means that the standards required for all measurement areas, under OPRES, have been achieved by between 70 to 79% |
P4 |
Not Prepared. The force element requires a level of resource input such that the Response Time for the applicable EC could be expected to be extended by more than 50%. It means that the standards required for all measurement areas, under OPRES, have been achieved by less than 70% |
P5 |
Unavailable for Assessment - The force element/capability is unavailable for assessment. This could be as a result of a capability being deployed, commissioned, or introduced. |
Note - DLOC should be seen as a band within which there are five ratings (P1 to P5). A force element that has been set a P1 rating is at DLOC if it achieves a P1 rating. If that force element only achieves a P2 rating, it is below its DLOC. Similarly, a force element that has been set a P2 rating for the year is at DLOC if it achieves a P2 rating - even though it is not 'fully prepared'. For reporting purposes, if a force element is below its stated "P" rating, an explanation as to what is required to return it to its stated "P" rating must be provided; this will include one or more of time, personnel, equipment or training.
External Audit of the NZDF's Performance
It should also be noted that, other than the NZDF's internal mechanisms for measuring performance, the following agencies also have a major role to play in evaluating the performance of the NZDF, including Output performance:
- The Evaluation Division of the Ministry of Defence
- The Office of the Controller and Auditor General, and
- Audit New Zealand.
Employment Contexts
Strategic guidance provides information on the circumstances in which the Government may choose to use military forces. The NZDF uses this guidance to develop geographically grouped Employment Contexts. Employment Contexts are descriptions of representative and illustrative security events for which there is a likelihood that a New Zealand Government would expect to make a military response should they occur. Employment Contexts are selected through assessment of New Zealand's geo-strategic situation and international security trends. The Employment Contexts are chosen on the basis of their likelihood of occurrence in the near and longer terms and the consequences for New Zealand's Defence Outcomes if the NZDF was unable to provide an appropriate response. Employment Contexts include high level Operational Concepts which, in turn, drive Services' and joint Mission Essential Tasks (METs), that is, those tasks that the deployed forces must be able to perform. The METs drive the priorities for the Services' and joint annual training activities and which determine the output parameters that need to be delivered in order to meet the Government's requirements. The Employment Contexts also designate the anticipated time (known as the Response Time) available for the final preparation of force elements for their operational deployment; this affects the level of capability that must be maintained on an annual basis. Concepts for Operations and Contingency Plans can then be developed for relevant Employment Contexts. Current Employment Context Operational Concepts list the most likely force elements that would be involved in each security event. These force element lists are a guide only and are not exhaustive; each security event may require the addition or deletion of some force elements. Employment Contexts provide the detail that ensures the NZDF output quality dimension is consistent with defence policy. The Employment Contexts (ECs), which are covered in more detail in the NZDF Output Plan and other NZDF-internal documents, are as listed below. The 'bolded' ECs (such as EC 1D, 2B, 4A, etc) are those that have been fully developed and against which the Force Elements of the NZDF, as applicable, are assessed for preparedness - as shown in the Output Expense tables that follow.
- EC 1 - Security Challenges and Defence Tasks in New Zealand and its environs:
- EC 1A - Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty.
- EC 1B - Natural and manmade disasters.
- EC 1C - Support to the delivery and maintenance of essential services in exceptional circumstances, including the hosting of major events.
- EC 1D - Terrorist and Asymmetric Threats.
- EC 1E - Support for Antarctic presence.
- EC 2 - Security Challenges to New Zealand's Interests in the South Pacific:
- EC 2A - Illegal exploitation of marine resources within South Pacific EEZs, and other low-level threats to South Pacific nations' territorial sovereignty.
- EC 2B - Natural and manmade disasters.
- EC 2C - State failure or fragility leading to internal conflict and/or humanitarian crisis.
- EC 2D - Terrorist Threats.
- EC 2E - Challenges to legitimate governments, including civil war and secessionist conflict.
- EC 3 - Challenges to New Zealand and Australia Common Security Interests:
- EC 3A - Illegal exploitation of marine resources within Australia's EEZ, and other low-level threats to Australia's territorial sovereignty.
- EC 3B - Natural or manmade disasters.
- EC 3C - External aggression against Australia.
- EC 3D - Terrorist or Asymmetric Threats.
- EC 4 - Security Challenges to New Zealand's Interests in the Asia-Pacific Region:
- EC 4A - Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation.
- EC 4B - Natural or manmade disasters.
- EC 4C - State failure or fragility leading to internal conflict and/or humanitarian crisis.
- EC 4D - Terrorist Threats.
- EC 4E - Weapons of Mass Destruction (WMD) proliferation.
- EC 4F - Inter-State conflict.
- EC 4G - Acts of piracy and people smuggling.
- EC 5 - Security Challenges to New Zealand's Interests in Global Peace and Security:
- EC 5A - Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation.
- EC 5B - Unresolved conflict or conflict resolution process where protagonists have sought third party resolution assistance.
- EC 5C - State failure or fragility leading to internal conflict and/or humanitarian crisis.
- EC 5D - Terrorist Threats (the 'War against Terrorism') .
- EC 5E - WMD proliferation.
- EC 5F - Contravention of international norms that triggers a multi-national response.
- EC 5G - Major breakdown in international security leading to wide-scale war.
Services in Support of the Community - including Multi-Agency Operations and Tasks (MAO&T)
General
Conducting the training activities needed to maintain the Directed Level of Capability (DLOC) for operational employment also produces within the NZDF the capacity to deliver a range of services in support of other government departments, the community, and foreign and defence policy objectives.
Approval levels for the provision of these services range from Cabinet/Ministerial level for significant events to unit commanders for minor local support tasks. Generally, however, tasks will be approved on the direction of the Chief of Defence Force, a Service Chief (Navy/Army/Air Force), or the Commander Joint Forces NZ. Details are contained in Defence Force Orders 1 (DFO 1), Chapter 13 - Assistance to Community Organisations.
Some general services are pre-planned or are, at least, reasonably predictable. Such tasks include ceremonial support, and planned assistance to the NZ Antarctic Programme, the Department of Conservation (DOC) and the NZ Police. The frequency of other tasks, primarily of an emergency nature such as search and rescue, assistance to civil defence and fire fighting, are, obviously, less predictable. The NZDF maintains elements at specified degrees of notice (DON) for response to such emergencies.
The main NZDF elements that are to be available for emergency tasks, listed by Service, are shown in the following table:
Service | Elements Available for Emergency Tasks [with Degree of Notice (DON) where applicable] |
---|---|
Navy |
|
Army |
|
Air Force |
|
Note 1 - EOD only as Improvised Explosive Device Disposal (IEDD) comes under Output Expense Special Operations Forces.
Multi-Agency Operations and Tasks (MAO&T)
The term Multi-Agency Operations and Tasks (MAO&T) is used in many of the NZDF Output Performance Tables contained in this document. The term is used within the relevant tables to draw a clear distinction between "general support" to the community and the more formal, pre-planned support to specific government departments and agencies, under the whole of government approach to, for example, protection of the New Zealand EEZ and border security. MAO&T refer to the formal operational support and training for such operations and tasks that the NZDF (Navy, Army and Air Force) provides, and that are being developed, with other government departments and agencies - such as the Ministry of Fisheries, NZ Customs Service, NZ Police, Ministry of Foreign Affairs and Trade, Department of Conservation, Maritime New Zealand (MNZ), and related agencies. The Navy and Air Force, in particular, work closely, individually and/or collectively, with such agencies. The Government has emphasised the general direction and increased importance of the civilian/military requirements associated with the NZ EEZ and border control.
The NZDF will continue to work closely with other government departments and agencies to plan formal arrangements for these requirements. It needs to be noted that, while existing formal support to other government departments and agencies will continue during 2009/10, any significant increase in this support cannot be guaranteed until new / replacement / upgraded vessels and aircraft are introduced into service.
The reporting of MAO&T, such as in the NZDF Annual Report, will be, by exception, against the table below.
A list of indicative NZDF MAO&T, general support to the government and the community, and tasks in support of foreign and defence policy objectives are listed in the following table. The scale and frequency of such tasks, unless pre-programmed, are not forecast. However, a summary of actual support provided is required for reporting purposes, and will be included in the Annual Report of the NZDF.
List of Indicative MAO&T and General Support
NZDF Support to: | Indicative Support Details / Remarks |
---|---|
NZ Police (excluding Search and Rescue) | Typically involves:
|
Land, Sea and Air SAR (in support of NZ Police, Rescue Coordination Centre New Zealand (RCCNZ), NadiRCC, SuvaMCC, or other requesting agency) | Typically involves:
|
Ministry of Civil Defence and Emergency Management | Typically involves assistance, as requested, to declared national, regional or local Civil Defence emergencies (Details in DFO 91(1) NZJSP 102) and may involve:
|
Department of Conservation (DOC) | Typically involves:
|
Department of Corrections | Various support and assistance. |
Environmental Risk Management Authority | Various support and assistance. |
NZ Fire Service and National Rural Fire Authority | Typically involves:
|
Ministry of Fisheries |
|
Ministry of Foreign Affairs and Trade (MFAT) |
|
Government House | Any major support for specific events/activities. (It does not include routine, on-going NZDF staff support and Aides-De-Camp assistance). |
Ministry of Health | Support for any specific events (such as health surveys or assistance in hospitals). |
Department of Internal Affairs | Typically involves:
|
Maritime New Zealand (MNZ) |
|
New Zealand Customs Service |
|
Department of Prime Minister and Cabinet (DPMC) | Typically involves:
|
Support to the NZ Antarctic Programme (NZAP) | Involves NZDF support in accordance with an annual NZAP/NZDF agreed plan. Typically involves:
|
General Medical Assistance/Support | Typically involves:
|
General Community Support | Typically involves:
|
General Training Courses | Typically involves the provision of training courses to other government departments and the community (schools / community groups):
|
Note 1 - This does not include CBRE / IEDD that comes under Output Expense Special Operations Forces.
Note 2 - For planning purposes flying hours provided for SAR are: 150 Orion hours, 16 Hercules hours, and 60 Iroquois hours.
Fixed Wing Transport Forces (M22)
Scope of Appropriation
Expenses and Revenue
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 218,885 | 218,885 | 226,490 |
Revenue from Crown | 217,466 | 217,466 | 225,228 |
Revenue from Other | 1,419 | 1,419 | 1,262 |
Output Performance Measures and Standards
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Number of B757-200 available for strategic military transport tasks - from a total fleet of two aircraft. | 1 Aircraft | 1 Aircraft | 1 Aircraft |
Number of C-130 aircraft available for deployed military tasks (from a total fleet of five aircraft) (see Note 1). | 2 Aircraft | 2 Aircraft | 2 Aircraft |
Number of additional C-130 aircraft available for EC 1D and emergency tasks, as required (see Note 1). | 1 Aircraft | 1 Aircraft | 1 Aircraft |
An Aeromedical Evacuation (AE) element for strategic and tactical AE in support of land operations. | AE element required | Delivered | AE element required |
The RNZAF is required to provide forward, tactical and strategic Aeromedical Evacuation (AE) services, including responsibility for the provision of AE-qualified personnel and associated AE equipment. For fixed wing tactical and strategic AE it is likely that, for high dependency cases, specialist support would be sought from other Services of the NZDF and/or non-defence resources. | |||
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) |
Satisfaction of supported department / agency | Delivered | Satisfaction of supported department / agency |
Total Air Flying Hours: | |||
Boeing 757 (target range in hours). | 1,330 - 1,470 | 1,000 | 1,330 - 1,470 |
Hercules C-130 (target range in hours). | 2,090 -2,310 | 2,100 | 1,995 - 2,205 |
The total C-130 annual flying hours allocation has been adjusted to reflect the reduction in the number of C-130 aircraft available and the total number of hours that can be generated and supported by the C-130 fleet during the period. | |||
Preparedness - Fixed Wing Transport Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Terrorist and Asymmetric Threats (EC 1D). | |||
B757 Transport Force. | Fully Prepared | Substantially Prepared | Fully Prepared |
C-130 Transport Force. | Fully Prepared | Substantially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | |||
B757 Transport Force. | Fully Prepared | Substantially Prepared | Fully Prepared |
C-130 Transport Force. | Fully Prepared | Substantially Prepared | Fully Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | |||
B757 Transport Force. | Fully Prepared | Substantially Prepared | Fully Prepared |
C-130 Transport Force. | Fully Prepared | Substantially Prepared | Fully Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | |||
B757 Transport Force. | Fully Prepared | Substantially Prepared | Fully Prepared |
C-130 Transport Force. | Fully Prepared | Substantially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A). | |||
B757 Transport Force. | Substantially Prepared | Substantially Prepared | Substantially Prepared |
C-130 Transport Force. | Substantially Prepared | Partially Prepared | Substantially Prepared |
Inter-State conflict (EC 4F). | |||
B757 Transport Force. | Substantially Prepared | Substantially Prepared | Substantially Prepared |
C-130 Transport Force. | Substantially Prepared | Partially Prepared | Substantially Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D). | |||
B757 Transport Force. | Substantially Prepared | Substantially Prepared | Substantially Prepared |
C-130 Transport Force. | Substantially Prepared | Partially Prepared | Substantially Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Note 1 - The number of C-130 Hercules aircraft available during 2009/10 (through to 20011/12) will be affected by the Long-Term Development Programme project to upgrade the C-130 fleet and will reduce the full capacity of this output. At least two C-130 aircraft will be removed from service at any one time during the upgrade programme. While the number of aircraft required by the NZDF Output Plan for OLOC should be maintained for the period, there will be periods where aircraft availability will be reduced - given the need to continue to cycle aircraft through group and phase servicing requirements. The reduced fleet size will have an affect on the duration of any operational deployments and the ability to rotate any such deployments. The requirement to sustain core and DLOC training will also affect the nature and extent of tasking that can be undertaken by the C-130 fleet during the period. Completion of the Boeing 757 upgrade with the ability to carry palletised freight will help compensate for reduced C-130 availability during the period.
Land Combat Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 357,046 | 357,046 | 373,762 |
Revenue from Crown | 354,983 | 354,983 | 371,499 |
Revenue from Other | 2,063 | 2,063 | 2,263 |
Reasons for Change in Appropriation#
The $16.716 million increase in this appropriation reflects the impact of the Defence Funding Package for 2009/10 and comparative impact of one-off savings in 2008/09.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Army, drawing on Headquarters 2 Land Force Group (HQ 2 LFG), HQ 3 LFG, 1 RNZIR, 2/1 RNZIR, QAMR and 1 NZ Military Intelligence Company, and with supplementation from the Territorial Force, as required, will provide the initial and rotation land combat force elements to constitute, generally: | |||
|
Available | Delivered | Available |
|
Available for 'Surge' only | Available for 'Surge' only | Available for 'Surge' only - but see Deployment Impacts. |
|
Available | Delivered | Available |
Deployment Impacts: | |||
|
|||
Army will also provide: | |||
|
Available | Delivered | Available |
|
Available | Delivered | Available |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. | Satisfaction of the supported agency/ department | Delivered | Satisfaction of the supported agency/ department |
While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) | |||
Preparedness - Land Combat Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Terrorist and Asymmetric Threats (EC 1D). | |||
Command, Control and Intelligence | Fully Prepared | Fully Prepared | Fully Prepared |
Manoeuvre Elements (Infantry and Reconnaissance): | |||
|
Fully Prepared | Fully Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | |||
Command, Control and Intelligence | Fully Prepared | Fully Prepared | Fully Prepared |
Manoeuvre Elements (Infantry and Reconnaissance): | |||
|
Fully Prepared | Fully Prepared | Fully Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | |||
Command, Control and Intelligence | Fully Prepared | Fully Prepared | Fully Prepared |
Manoeuvre Elements (Infantry and Reconnaissance): | |||
|
Fully Prepared | Fully Prepared | Fully Prepared |
|
Fully Prepared | Partially Prepared | Substantially Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | |||
Command, Control and Intelligence | Fully Prepared | Fully Prepared | Fully Prepared |
Manoeuvre Elements (Infantry and Reconnaissance): | |||
|
Fully Prepared | Fully Prepared | Fully Prepared |
|
Fully Prepared | Partially Prepared | Substantially Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Inter-State conflict (EC 4F). | |||
Command, Control and Intelligence | Substantially Prepared | Partially Prepared | Partially Prepared |
Manoeuvre Elements (Infantry and Reconnaissance): | |||
|
Substantially Prepared | Not Prepared | Not Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D). | |||
Command, Control and Intelligence | Substantially Prepared | Fully Prepared | Fully Prepared |
Manoeuvre Elements (Infantry and Reconnaissance): | |||
|
Substantially Prepared | Substantially Prepared | Substantially Prepared |
|
Substantially Prepared | Not Prepared | Not Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Land Combat Service Support Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 151,978 | 151,978 | 152,826 |
Revenue from Crown | 151,106 | 151,106 | 151,995 |
Revenue from Other | 872 | 872 | 831 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Army, drawing on 2 Logistics Battalion, 3 Logistics Battalion, 2 Health Support Battalion and Logistic Executive, as part of, respectively, 2 LFG, 3 LFG and Army General Staff, with supplementation from the Territorial Force, as required, will provide the initial and rotation combat service support force elements to support, generally, as applicable: | |||
|
Available | Delivered | Available |
|
Available for 'Surge' only | Available for 'Surge' only | Available for 'Surge' only |
|
Available | Delivered | Available |
Deployment Impact: | |||
The Army Transport, Medical, Supply and Repair capabilities can be stretched when they are required to support a large number of concurrent deployments. | |||
Army will also provide combat service support elements to support the framework for a Brigade Group for simulation and Command Post Exercise-based combined-arms training; this will require supplementation by TF Battalion Groups. | Available | Delivered | Available |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. | Satisfaction of the supported agency/ department | Delivered | Satisfaction of the supported agency/ department |
While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) | |||
Preparedness - Land Combat Service Support Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Terrorist and Asymmetric Threats (EC 1D) | |||
Transport Elements | Fully Prepared | Fully Prepared | Fully Prepared |
Medical Elements | Fully Prepared | Fully Prepared | Fully Prepared |
Supply Elements | Fully Prepared | Fully Prepared | Fully Prepared |
Repair Elements | Fully Prepared | Fully Prepared | Fully Prepared |
Movements Elements | Fully prepared | Fully Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B) | |||
Transport (in support of a Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Medical (in support of Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Supply (in support of Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Repair (in support of Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Movements (in support of a Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C) | |||
Transport (in support of Company Group) | Fully Prepared | Partially Prepared | Substantially Prepared |
Transport (in support of Battalion Group under 'surge' capacity) | Fully prepared | Partially Prepared | Substantially Prepared |
Medical (in support of Company Group) | Fully Prepared | Substantially Prepared | Substantially prepared |
Medical (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Supply (in support of Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Supply (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Partially Prepared | Substantially Prepared |
Repair (in support of Company Group) | Fully Prepared | Partially Prepared | Substantially Prepared |
Repair (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Partially Prepared | Substantially Prepared |
Movements (in support of Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Movements (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E) | |||
Transport (in support of Company Group) | Fully Prepared | Partially Prepared | Substantially Prepared |
Transport (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Partially Prepared | Substantially Prepared |
Medical (in support of Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Medical (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Supply (in support of Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Supply (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Partially Prepared | Substantially Prepared |
Repair (in support of Company Group) | Fully Prepared | Partially Prepared | Substantially Prepared |
Repair (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Partially Prepared | Substantially Prepared |
Movements (in support of Company Group) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Movements (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Inter-State conflict (EC 4F) | |||
Transport (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Partially Prepared | Partially Prepared |
Medical (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Partially Prepared | Partially Prepared |
Supply (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Partially Prepared | Partially Prepared |
Repair (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Partially Prepared | Partially Prepared |
Movements (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Partially Prepared | Partially Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D) | |||
Transport (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Partially Prepared | Partially Prepared |
Medical (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Supply (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Partially Prepared | Partially Prepared |
Repair (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Partially Prepared | Partially Prepared |
Movements (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Partially Prepared | Partially Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Land Combat Support Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 198,810 | 198,810 | 201,694 |
Revenue from Crown | 197,573 | 197,573 | 200,501 |
Revenue from Other | 1,237 | 1,237 | 1,193 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Army, drawing on 2 Land Force Group (LFG) and 3 LFG Regular Force artillery, engineer, communications, and military police units [16 Field Regiment, 2 Engineer Regiment, 1 (NZ) Signals Regiment - including an Electronic Warfare element, and 1 (NZ) Military Police Company], and with supplementation from the Territorial Force, as required, will provide the initial and rotation land combat support force elements to support, generally, as applicable: | |||
|
Available | Delivered | Available |
|
Available for 'Surge' only | Available for 'Surge' only | Available for 'Surge' only |
|
Available | Delivered | Available |
Deployment Impact: | |||
The Army Communications and Military Police capabilities can be stretched when they are required to support a large number of concurrent deployments. | |||
Army will also provide artillery, engineer, communications and military police force elements to support the framework for a Brigade Group for simulation and Command Post Exercise-based combined-arms training; this will require supplementation from the Territorial Force. | Available | Delivered | Available |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. | Satisfaction of the supported agency/ department | Delivered | Satisfaction of the supported agency/ department |
While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) | |||
Preparedness - Land Combat Support Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Terrorist and Asymmetric Threats (EC 1D) | |||
Field Artillery (personnel only - in support of Cordon) | Fully Prepared | Fully Prepared | Fully Prepared |
Engineers (in support of Company Group) | Fully Prepared | Substantially Prepared | Fully Prepared |
Communications (in support of Company Group) | Fully Prepared | Fully Prepared | Fully Prepared |
Military Police (in support of Company Group) | Fully Prepared | Fully Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B) | |||
Field Artillery (personnel only in support of a Company Group) | Fully Prepared | Fully Prepared | Fully Prepared |
Engineers (in support of Company Group) | Fully Prepared | Fully Prepared | Fully Prepared |
Communications (in support of Company Group) | Fully Prepared | Fully Prepared | Fully Prepared |
Military Police (in support of Company Group) | Fully Prepared | Fully Prepared | Fully Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C) | |||
Field Artillery (personnel only in support of Company Group) | Fully Prepared | Fully Prepared | Fully Prepared |
Field Artillery (personnel only in support of Battalion Group under 'surge' capacity) | Fully prepared | Fully Prepared | Fully Prepared |
Engineers (in support of Company Group) | Fully Prepared | Fully Prepared | Fully prepared |
Engineers (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Communications (in support of Company Group) | Fully Prepared | Substantially Prepared | Fully Prepared |
Communications (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Substantially Prepared | Substantially Prepared |
Military Police (in support of Company Group) | Fully Prepared | Fully Prepared | Fully Prepared |
Military Police (in support of Battalion Group under 'surge' capacity) | Fully Prepared | Fully Prepared | Fully Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E) | |||
Field Artillery (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Engineers (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Communications (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Military Police (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Inter-State conflict (EC 4F) | |||
Field Artillery (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Engineers (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Communications (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Military Police (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D) | |||
Field Artillery (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Engineers (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Partially Prepared |
Communications (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Partially Prepared |
Military Police (in support of Battalion Group under 'surge' capacity) | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Maritime Patrol Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 165,733 | 165,733 | 167,876 |
Revenue from Crown | 164,644 | 164,644 | 166,106 |
Revenue from Other | 1,089 | 1,089 | 1,770 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Number of P-3K2 Orion aircraft available for military tasks - from a total fleet of six aircraft (see Note 1). | 2 Aircraft | 2 Aircraft | 2 Aircraft |
Number of additional P-3K2 Orion aircraft available for maritime Search and Rescue and other emergency tasks, as required. | 1 Aircraft | 1 Aircraft | 1 Aircraft |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) |
Satisfaction of supported department / agency | Delivered | Satisfaction of supported department / agency |
Total P-3K2 Orion Flying Hours (target range in hours). The total Orion annual flying hours allocation has been adjusted to reflect the reduction in the number of aircraft available and the total number of hours that can be generated and supported by the Orion fleet during FY 2009/10. |
2,261 - 2,499 | 2,190 | 2,232 - 2,468 |
Preparedness - Maritime Patrol Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A). | Fully Prepared | Substantially Prepared | Fully Prepared |
Terrorist and Asymmetric Threats (EC 1D). | Fully Prepared | Substantially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | Fully Prepared | Substantially Prepared | Fully Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | Fully Prepared | Substantially Prepared | Fully Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | Fully Prepared | Substantially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A). | Substantially Prepared | Partially Prepared | Substantially Prepared |
Inter-State conflict (EC 4F). | Substantially Prepared | Partially Prepared | Substantially Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D). | Substantially Prepared | Partially Prepared | Substantially Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Note 1 - The number of P-3K2 Orion aircraft available during 2009/10 (through to 2011/12) will be affected by the Long-Term Development Plan (LTDP) rolling programme to upgrade the Orion fleet and will reduce the full capacity of this output expense. From September 2009 up to three aircraft will be removed from service at any one time during the upgrade programme. In addition, the remaining aircraft will continue to be cycled through group and phase servicing requirements. This will have an affect on the likely sustainable duration of any operational deployments and the ability to rotate any such deployments. The requirement to sustain core and Directed Level of Capability (DLOC) training will also affect the nature and extent of tasking that can be undertaken by the fleet during the period.
Military Hydrography, and Hydrographic Data Collection and Processing for LINZ (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 16,253 | 16,253 | 16,336 |
Revenue from Crown | 9,815 | 9,815 | 9,903 |
Revenue from Other | 6,438 | 6,438 | 6,433 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
HMNZS RESOLUTION available to conduct military hydrography (see Note 1). Deployment Impact: This Output Expense is being run at a level sufficient to meet commercial (LINZ) and operational requirements thus allowing the allocation of some personnel for Output Expense Operationally Deployed Forces. |
Available | Available | Available |
HMNZS RESOLUTION available to conduct hydrographic tasks for LINZ under contract. The Hydrographic Business Unit available to support the collection and processing programmes. | Available | Available | Available |
Deliver LINZ Contract performance standards. The emphasis is on meeting the contract requirements for hydrographic survey to the satisfaction of LINZ and the delivery of hydrographic data that meets international standards. Other measures include:
|
Deliver | Delivered | Deliver |
The DHSU available to conduct military hydrography either independently or in support of other NZDF force elements. | Available | Available | Available |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) |
Satisfaction of supported department / agency | Delivered | Satisfaction of supported department / agency |
Undertake Defence Diplomacy tasks in accordance with NZDF and Government/MFAT requirements. This normally involves ship visits to foreign ports. | As required | Delivered | As Required |
HMNZS RESOLUTION Mission Availability Days / Sea Days for the year: | 236 / 100 to 115 | 235 / 140 | 303 / 31 to 51 |
HMNZS RESOLUTION Survey Line Miles in support of the LINZ Contract: | 2,975 | 3,300 | 4,675 |
Preparedness - Military Hydrography: Employment Context (only applicable to the Military Hydrography part of this Output Expense) |
|||
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | Fully Prepared | Substantially Prepared | Fully Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | Fully Prepared | Partially Prepared | Substantially Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | Fully Prepared | Partially Prepared | Substantially Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Note 1 - The ability for HMNZS RESOLUTION and the Deployable Hydrographic Support Unit (DHSU) to leverage opportunities to help achieve the OS20/20 Vision and also provide Output Expense Mine Countermeasures (MCM) and MCM Diving Forces products (predominantly Q route surveys) will continue to be explored, commensurate with this primary output expense tasking.
Military Policy Development, Coordination and Advice (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 13,374 | 13,374 | 13,014 |
Revenue from Crown | 13,339 | 13,339 | 12,979 |
Revenue from Other | 35 | 35 | 35 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Range of key submissions anticipated as follows: | |||
|
2 | 2 | 2 |
|
40-60 | 30 | 30-50 |
|
350-450 | 400 | 350-450 |
|
300-400 | 320 | 300-400 |
|
350-450 | 330 | 350-450 |
|
5-10 | 3 | 2-8 |
|
300-400 | 430 | 380-480 |
The supply of individual products, as above, of high quality - defined by the characteristics of quality advice. | Meet | Met | Meet |
All reports and oral advice will be delivered within the agreed or statutory time frame: | |||
|
95% | 85% | 95% |
|
95% | 70% | 95% |
|
95% | 95% | 95% |
Percentage of the first drafts of all policy papers accepted by the Minister | 95% | 98% | 95% |
Percentage of other responses accepted without substantive amendment | 90% | 98% | 95% |
Degree of satisfaction expressed by the Minister, appropriate committee or agency (feedback from those for whom policy products have been produced) | High Satisfaction | Satisfied | High Satisfaction |
Note 1 - Characteristics of 'quality advice':
- Purpose. The aims of papers are clearly stated and answers the questions the Minister has raised.
- Logic. The assumptions behind the advice are explicit, the argument is logical and supported by facts.
- Accuracy. The facts in the paper are accurate and all material facts have been included.
- Options. An adequate range of options has been presented and each is assessed for benefits, costs and consequences to the government and the community.
- Consultation. Evidence of adequate consultation with interested parties and possible objections to proposals have been identified.
- Practicality. The format meets Cabinet Office requirement, the material is effectively and concisely summarised, has short sentences in plain English, and is free from spelling and grammatical errors.
Mine Countermeasures (MCM) and MCM Diving Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 27,685 | 27,685 | 25,511 |
Revenue from Crown | 27,396 | 27,396 | 25,280 |
Revenue from Other | 289 | 289 | 231 |
Reasons for Change in Appropriation#
The $2.174 million decrease in this appropriation mainly reflects NZDF overhead savings during 2009/10.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
MCM Support Vessel (HMNZS MANAWANUI) and Operational Diving Team (ODT) available for military tasks. When HMNZS MANAWANUI is deployed outside of New Zealand waters, HMNZS KAHU will undertake the tasks of MCM Support Vessel on the New Zealand station. When not deployed in this role, HMNZS KAHU will operate as part of the Naval Patrol Forces). Only one of two Diving Teams that make up the ODT is manned. |
Available | Available | Available |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) |
Satisfaction of supported department / agency | Delivered | Satisfaction of supported department / agency |
HMNZS MANAWANUI Mission Availability Days / Sea Days for the year: | 236 / 50 to 65 | 244 / 131 | 234 / 82 to 102 |
HMNZS KAHU Mission Availability Days / Sea Days for the year: | 236 / 40 to 55 | 281 / 141 | 225 / 88 to 108 |
Operational Diving Team time (range in hours) spent on operational dive training and MCM readiness training in diving techniques for the disposal of mines and other explosive devices. (The diving hours refer to actual time in the water). | 340 - 380 | 292 | 327 - 347 |
Preparedness - Naval Support Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Terrorist and Asymmetric Threats (EC 1D). | |||
HMNZS MANAWANUI | Fully Prepared | Substantially Prepared | Fully Prepared |
ODT | Fully Prepared | Substantially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | |||
HMNZS MANAWANUI | Fully Prepared | Substantially Prepared | Fully Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | |||
HMNZS MANAWANUI | Fully Prepared | Substantially Prepared | Fully Prepared |
ODT | Fully Prepared | Partially Prepared | Fully Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | |||
HMNZS MANAWANUI | Fully Prepared | Substantially Prepared | Fully Prepared |
ODT | Fully Prepared | Partially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A). | |||
HMNZS MANAWANUI | Substantially Prepared | Partially Prepared | Substantially Prepared |
ODT | Substantially Prepared | Partially Prepared | Substantially Prepared |
Inter-State conflict (EC 4F). | |||
HMNZS MANAWANUI | Substantially Prepared | Partially Prepared | Substantially Prepared |
ODT | Substantially Prepared | Partially Prepared | Partially Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D) | |||
HMNZS MANAWANUI | Substantially Prepared | Partially Prepared | Substantially Prepared |
ODT | Substantially Prepared | Partially Prepared | Substantially Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Miscellaneous Support Activities MCOA (M22)#
Scope of Appropriation#
This output class is limited to the conduct of Limited Service Volunteer courses for unemployed or disadvantaged youth, selected by the Ministry of Social Development, to encourage these youth towards employment.
Support to Mutual Assistance Programme (MAP)
This output class is limited to the provision of training, technical advice and resources to the defence forces and law enforcement agencies of participant countries under the Mutual Assistance Programme (MAP), both in New Zealand and in MAP countries.
Support to New Zealand Cadet Forces
This output class is limited to the provision of leadership and skills training for all approved New Zealand Cadet Force (NZCF) units.
Support to Service Military Museums
This output class is limited to collection development, collection management and exhibits related to New Zealand's military history.
Explanation for Use of Multi-Class Output Expense Appropriation#
Outputs of a miscellaneous and disparate nature that do not individually justify separate Departmental Output Expense recognition have been grouped to provide for improved transparency and accountability.
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation |
16,393 | 16,393 | 17,342 |
Support to Limited Service Volunteer Scheme | 4,078 | 4,078 | 4,267 |
Support to Mutual Assistance Programme (MAP) | 1,677 | 1,677 | 1,893 |
Support to New Zealand Cadet Forces | 3,285 | 3,285 | 3,833 |
Support to Service Military Museums | 7,353 | 7,353 | 7,349 |
Revenue from Crown |
14,031 | 14,031 | 15,630 |
Support to Limited Service Volunteer Scheme | 1,716 | 1,716 | 2,555 |
Support to Mutual Assistance Programme (MAP) | 1,677 | 1,677 | 1,893 |
Support to New Zealand Cadet Forces | 3,285 | 3,285 | 3,833 |
Support to Service Military Museums | 7,353 | 7,353 | 7,349 |
Revenue from Other |
2,362 | 2,362 | 1,712 |
Support to Limited Service Volunteer Scheme | 2,362 | 2,362 | 1,712 |
Support to Mutual Assistance Programme (MAP) | - | - | - |
Support to New Zealand Cadet Forces | - | - | - |
Support to Service Military Museums | - | - | - |
Reasons for Change in Appropriation#
The total appropriation will increase by $949,000 for 2009/10.
The increase relates to:
- The appropriation for Support to Limited Service Volunteer Scheme will increase by $188,000 million due to increased forecast delivery against the scheme.
- The appropriation for Support to Mutual Assistance Programme (MAP) will increase by $215,000 which mainly relates to increased assistance to MAP country programmes.
- The appropriation for Support to New Zealand Cadet Forces will increase by $548,000 which mainly relates to increased Cadet Officer training days programmed for 2009/10.
- The appropriation for Support to Service Military Museums has no significant change.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Generally for this MCOA: |
|||
Training and administrative support will be provided in accordance with NZDF training quality standards as modified with senior staff from the requesting organisation: | |||
|
Satisfied | Delivered | Satisfied |
|
Deliver | Delivered | Deliver |
Support to Mutual Assistance Programme (MAP): |
|||
|
120 - 180 | 160 | 140 - 180 |
|
Deliver | Delivered | Deliver |
|
Monitor and Analyse | Monitor and Analyse | Monitor and Analyse |
Support to New Zealand Cadet Forces (NZCF) |
|||
General: |
|||
The NZCF comprises 401 NZCF officers and 3,855 cadets within 102 Cadet Force Units across New Zealand. The personnel figures fluctuate from month to month, especially at the end of the school year. Permanent staff includes 27 Tri-Service, Regular Force training and support staff, and 5 civilian administrative staff. | |||
|
34 / (2,416) | 33 / (2,356) | 37 / (3,131) |
|
47 / (11,085) | 45 / (10,437) | 41 / (11,213) |
|
Meet | Met | Meet |
|
Meet | Met | Meet |
|
Positive Feedback | Positive Feedback | Positive Feedback |
Support to Limited Service Volunteer Scheme: |
|||
|
5 | 5 | 5 |
|
Up to 720 | 600 | Up to 720 |
|
Deliver | Delivered | Deliver |
Support to Service Military Museums: |
|||
|
Maintain | Maintained | Maintain |
|
Provide | Provided | Provide |
|
Meet | Met | Meet |
|
Review | Reviewed | Review |
|
Yes | Yes | Yes |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Defence Act 1990 Part VII | Details regarding the responsibilities of the Minister of Defence and the Chief of Defence, relating to the New Zealand Cadet Forces, and about those forces generally, are contained in Sections 74 - 80 of the Defence Act 1990. |
Naval Combat Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 397,663 | 397,663 | 384,715 |
Revenue from Crown | 394,184 | 394,184 | 381,277 |
Revenue from Other | 3,479 | 3,479 | 3,438 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Number of ANZAC frigates, each with embarked Seasprite helicopter as required, available for military tasks. One frigate to be available for regional or collective security tasks and the second frigate to be available to deal with low-level security challenges in New Zealand or South Pacific waters. | 2 Frigates | 2 Frigates | 2 Frigates |
The Offshore Patrol Vessels (OPVs) will assume the low-level security challenges in New Zealand or South Pacific waters role once they have been fully accepted into service. | |||
Deployment Impact: | |||
|
|||
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) |
Satisfaction of supported department / agency | Delivered | Satisfaction of supported department / agency |
Undertake Defence Diplomacy tasks in accordance with NZDF and Government/MFAT requirements. This normally involves ship visits to foreign ports. | As required | Delivered | As Required |
HMNZS TE KAHA Mission Availability Days / Sea Days for the year (range in days). | 175 / 90 to 110 | 230 / 142 | 161 / 95 to 115 |
HMNZS TE MANA Mission Availability Days / Sea Days for the year (range in days). | 200 / 130 to 140 | 212 / 138 | 115 / 72 - 92 |
Preparedness - Naval Combat Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A). | Fully Prepared | Fully Prepared | Fully Prepared |
Terrorist and Asymmetric Threats (EC 1D). | Fully Prepared | Fully Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | Fully Prepared | Fully Prepared | Fully Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | Fully Prepared | Fully Prepared | Fully Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | Fully Prepared | Fully Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A). | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Inter-State conflict (EC 4F). | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D). | Substantially Prepared | Substantially Prepared | Substantially Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Note 1 - Details on the Seasprite helicopters are recorded under Output Expense Naval Helicopter Forces.
Naval Helicopter Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 82,873 | 82,873 | 82,637 |
Revenue from Crown | 82,372 | 82,372 | 81,968 |
Revenue from Other | 501 | 501 | 669 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Number of SH-2G(NZ) Seasprite helicopters available for military tasks - from a total fleet of five Seasprite helicopters. Priority is for the Seasprites to be available for Naval Combat Force operations. Management of this Output Expense is governed by the RNZAF/RNZN Joint Agreement on Naval Aviation. Note: No 6 squadron, RNZAF will remain under the full command of the Chief of Air Force. Operational command will be exercised through the Air Component Commander (ACC) and Officer Commanding 485 Wing for shore-based activities. When ships' flights are required to embark, operational command will be assigned by ACC to the Maritime Component Commander (MCC), who will in turn assign operational control to the ship's Commanding Officer. The RNZAF is responsible for the training of RNZN Seasprite helicopter aircrew and the provision and training of Ship's Flights maintenance personnel, for operational employment by the RNZN. |
3 Helicopters | 3 Helicopters | 3 Helicopters |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) |
Satisfaction of supported department / agency | Delivered | Satisfaction of supported department / agency |
In conjunction with the Naval Combat forces, undertake Defence Diplomacy tasks in accordance with NZDF and Government/MFAT requirements. This normally involves ship visits to foreign ports. | As required | Delivered | As Required |
Total Seasprite Air Flying Hours (target range in hours). | 1,335 - 1,475 | 1,164 | 1,240 - 1,370 |
Preparedness - Naval Helicopter Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A). | Fully Prepared | Partially Prepared | Fully Prepared |
Terrorist and Asymmetric Threats (EC 1D). | Fully Prepared | Substantially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | Fully Prepared | Substantially Prepared | Fully Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | Fully Prepared | Substantially Prepared | Fully Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | Fully Prepared | Substantially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A). | Substantially Prepared | Partially Prepared | Substantially Prepared |
Inter-State conflict (EC 4F). | Substantially Prepared | Partially Prepared | Substantially Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D). | Substantially Prepared | Partially Prepared | Substantially Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Naval Patrol Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 82,859 | 82,859 | 108,886 |
Revenue from Crown | 82,150 | 82,150 | 108,165 |
Revenue from Other | 709 | 709 | 721 |
Reasons for Change in Appropriation#
The $26.027 million increase in this appropriation mainly reflects the introduction into service of the new inshore and offshore patrol vessels for the Navy and to provide for enhanced Multi-Agency Operations and Tasks.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
The OPVs, HMNZ Ships OTAGO and WELLINGTON, with embarked Seasprite or other helicopter/s as required, available for military tasks - once delivered for service in the Navy. Subject to availability and the Government's requirements, tasking of the OPVs may take place in ECs other than those listed below. |
Available | Not Available | Two Available |
The IPVs, HMNZ Ships ROTOITI, HAWEA, PUKAKI and TAUPO, available for military tasks - once delivered for service in the Navy. Subject to availability and the Government's requirements, tasking of the OPVs may take place in ECs other than those listed below. |
Available | Not Available | Four Available |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) |
Satisfaction of supported department / agency | Not Delivered | Satisfaction of supported department / agency |
OPV HMNZS OTAGO Mission Availability / Sea Days for the year: | 236 / 110 to 125 | Nil | 273 / 93 to 113 |
OPV HMNZS WELLINGTON Mission Availability / Sea Days for the year: | 236 / 70 to 90 | Nil | 312 / 3 to 6 |
IPV HMNZS ROTOITI Mission Availability / Sea Days for the year: | 235 / 115 to 140 | Nil | 256 / 108 to 128 |
IPV HMNZS HAWEA Mission Availability / Sea Days for the year: | 235 / 105 to 125 | Nil | 226 / 109 to 129 |
IPV HMNZS PUKAKI Mission Availability (days) for the year: | 20 to 40 | Nil | 272 / 118 to 138 |
IPV HMNZS TAUPO Mission Availability (days) for the year: | 20 to 40 | Nil | 247 / 103 to 123 |
Preparedness - Naval Patrol Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A). | |||
Offshore Patrol Forces | Fully Prepared | Unavailable for Assessment | Fully Prepared |
Inshore Patrol Forces | Fully Prepared | Unavailable for Assessment | Fully Prepared |
Terrorist and Asymmetric Threats (EC 1D). | |||
Offshore Patrol Forces | Fully Prepared | Unavailable for Assessment | Fully Prepared |
Inshore Patrol Forces | Fully Prepared | Unavailable for Assessment | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | |||
Offshore Patrol Forces | Fully Prepared | Unavailable for Assessment | Fully Prepared |
Inshore Patrol Forces | Fully Prepared | Unavailable for Assessment | Substantially Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | |||
Offshore Patrol Forces | Fully Prepared | Unavailable for Assessment | Substantially Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | |||
Offshore Patrol Forces | Substantially Prepared | Unavailable for Assessment | Substantially Prepared |
Note
The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
For 2008/09, the number of Days Available / Sea Days for the OPVs and IPVs was dependent on the delivery of these new vessels under Project Protector. None of the vessels were fully accepted into service in 2008/09 due to delays in delivery.
Naval Support Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 102,089 | 102,089 | 98,496 |
Revenue from Crown | 101,155 | 101,155 | 97,638 |
Revenue from Other | 934 | 934 | 858 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
HMNZS ENDEAVOUR and HMNZS CANTERBURY, each with embarked Seasprite helicopter/s as required, available for military tasks. HMNZS CANTERBURY is capable of embarking four NH-90 medium utility helicopters (to be acquired by the NZDF in 2010/11). HMNZS CANTERBURY will not be fully prepared for the full spectrum of operational service until the end of 2009. |
Available | Available | Available |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) |
Satisfaction of supported department / agency | Delivered | Satisfaction of supported department / agency |
Both vessels undertake Defence Diplomacy tasks in accordance with NZDF and Government/MFAT requirements. This normally involves ship visits to foreign ports. | As required | Delivered | As Required |
HMNZS ENDEAVOUR Mission Availability Days / Sea Days for the year: | - / 14 to 15 | 252 / 91 | 239 / 141 to 161 |
HMNZS CANTERBURY Mission Availability Days / Sea Days for the year: | 236 / 120 to 140 | 186 / 101 | 279 / 135 to 155 |
Preparedness - Naval Support Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Illegal exploitation of marine resources within the New Zealand EEZ, and other low-level threats to New Zealand territorial sovereignty (EC 1A). | |||
HMNZS CANTERBURY | Fully Prepared | Partially Prepared | Fully Prepared |
Terrorist and Asymmetric Threats (EC 1D). | |||
HMNZS CANTERBURY | Fully Prepared | Partially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | |||
HMNZS ENDEAVOUR | Fully Prepared | Substantially Prepared | Fully Prepared |
HMNZS CANTERBURY | Fully Prepared | Not Prepared | Fully Prepared by end of 2009 |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | |||
HMNZS ENDEAVOUR | Fully Prepared | Substantially Prepared | Fully Prepared |
HMNZS CANTERBURY | Fully Prepared | Not Prepared | Fully Prepared by end of 2009 |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | |||
HMNZS ENDEAVOUR | Fully Prepared | Substantially Prepared | Fully Prepared |
HMNZS CANTERBURY | Fully Prepared | Not Prepared | Fully Prepared by end of 2009 |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Aggression to alter maritime boundaries or seize resources, or threats to freedom of navigation (EC 4A). | |||
HMNZS ENDEAVOUR | Substantially Prepared | Partially Prepared | Substantially Prepared |
HMNZS CANTERBURY | Substantially Prepared | Not Prepared | Substantially Prepared |
Inter-State conflict (EC 4F). | |||
HMNZS ENDEAVOUR | Substantially Prepared | Partially Prepared | Substantially Prepared |
HMNZS CANTERBURY | Substantially Prepared | Not Prepared | Substantially Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D). | |||
HMNZS ENDEAVOUR | Substantially Prepared | Partially Prepared | Substantially Prepared |
HMNZS CANTERBURY | Substantially Prepared | Not Prepared | Substantially Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Operationally Deployed Forces Annual (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 78,633 | 78,633 | 81,585 |
Revenue from Crown | 78,049 | 78,049 | 81,000 |
Revenue from Other | 584 | 584 | 585 |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
The performance of NZDF Force Elements deployed on government-approved operational missions is assessed against the following: | |||
|
Meet | Met | Meet |
|
Meet | Met | Meet |
|
Satisfy | Satisfied | Satisfy |
|
Meet | Met | Meet |
|
Maintain | Maintained | Maintain |
|
Meet | Met | Meet |
Operational Commitments: |
|||
Maintain the Government-approved deployments / operational commitments (number of personnel deployed), as at 1 April 2009, as shown below. | |||
The numbers of personnel operationally deployed fluctuate from month to month during the year. These fluctuations result from missions closing and opening, short term deployments (such as the ANZAC frigate, HMNZS TE MANA, deployment to the Gulf in May - July 2008), seasonal variations to the numbers involved in specific missions (such as in Afghanistan in winter and summer), and so on. It is therefore not particularly relevant to compare the budgeted numbers at the start of the financial year with the estimated numbers at the end of the financial. However, a year on year comparison provides an indicator on the trend of personnel deployed (more or less), but still does not capture short-term deployments that at the start of the year were not known. | |||
|
182 | 155 | 155 |
|
8 | 8 | 8 |
|
26 | 26 | 26 |
|
1 | Nil | Nil |
|
1 | 1 | 1 |
|
111 | 139 | 139 |
|
5 | 5 | 5 |
|
2 | 3 | 3 |
|
1 | 1 | 1 |
|
2 | 2 | 2 |
|
2 | 2 | 2 |
|
6 | 6 | 6 |
|
3 | 3 | 3 |
|
52 | 44 | 44 |
|
3 | 3 | 3 |
|
1 | 1 | 1 |
Total NZDF personnel deployed: | 406 | 399 | 399 |
Rotary Wing Transport Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 128,778 | 128,778 | 135,469 |
Revenue from Crown | 128,084 | 128,084 | 134,166 |
Revenue from Other | 694 | 694 | 1,303 |
Reasons for Change in Appropriation#
The $6.691 million increase in this appropriation mainly reflects the Defence Funding Package for 2009/10 and the comparative impact of the one-off savings in 2008/09.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Number of UH-1H Iroquois helicopters available for military tasks - from a total fleet of 14 helicopters. It is prudent to record now that the introduction into service of the NH-90 helicopter (replacement for the Iroquois) in 2010 onwards, will impact on the availability of helicopters for operational deployment. More detail will be provided in the 2010/11 documentation. (The Seasprite naval helicopters are provided under a different Output Expense - Naval Helicopter Forces.) |
6 Helicopters | 6 Helicopters | 6 Helicopters |
Number of additional helicopters on standby for rapid response tasks in New Zealand (under EC 1), such as Counter-Terrorist Operations and for Search and Rescue Missions. | 2 Helicopters | 2 Helicopters | 2 Helicopters |
A Forward and Tactical Aeromedical Evacuation (AE) element for the support of land operations. (The RNZAF is required to provide forward and tactical Rotary Wing AE services, including responsibility for the provision of AE-qualified personnel and associated AE equipment.) |
AE element required | Delivered | AE element required |
Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. | Satisfaction of supported department / agency | Delivered | Satisfaction of supported department / agency |
While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (For details see the section on "Services in Support of the Government and the Community, including MAO&T", in Part 2.1.) | |||
Total Iroquois Air Flying Hours(target range in hours). | 4,332 - 4,788 | 4,510 | 3,952 - 4,368 |
Preparedness - Rotary Wing Helicopter Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Terrorist and Asymmetric Threats (EC 1D). | Fully Prepared | Substantially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
Natural and manmade disasters (EC 2B). | Fully Prepared | Substantially Prepared | Fully Prepared |
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2C). | Fully Prepared | Substantially Prepared | Fully Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E). | Fully Prepared | Substantially Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Inter-State conflict (EC 4F). | Substantially Prepared | Not Prepared | Partially Prepared |
(See Note 2 below) | (See Note 2 below) | ||
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D). | Substantially Prepared | Not Prepared | Partially Prepared |
(See Note 2 below) | (See Note 2 below) |
Note
The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
High-end operational tasks (like under ECs 4 and 5) are beyond the current capabilities of the Iroquois helicopter. This situation will not improve until the NH-90 helicopters have been fully introduced into service.
Special Operations Forces (M22)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 60,245 | 60,245 | 63,184 |
Revenue from Crown | 59,842 | 59,842 | 62,746 |
Revenue from Other | 403 | 403 | 438 |
Output Performance Measures and Standards#
This Output Expense is designed to provide capabilities prepared for:
- Special Operations (NZ Special Air Service (NZ SAS) "green role") in support of land operations. It also includes the requirement to provide Special Forces elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training. If a major element of the Special Forces is committed in support of land combat operations, the Army is not able to provide, concurrently, a like commitment to another operation/mission.
- A Counter-Terrorist Group to assist the NZ Police in Counter-Terrorist operations, including Maritime Counter-Terrorism, under Employment Contexts 1D and 2D.
- National Response for Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD). It involves the provision of a dedicated military organisation of specialised teams at the operational level of capability prepared for Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD) that threaten public safety or national interests. This organisation will not normally be available for other community support services.
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Army, drawing on 1st NZ Special Air Service Group (1 NZ SAS Gp), 1 NZ Explosive Ordnance Disposal (EOD) Squadron (1 NZ EOD Sqn), and Army/NZDF-wide resources, will provide: | |||
|
Available | Delivered | Available |
|
Available | Delivered | Available |
|
Available | Delivered | Available |
CBRE IEDD Organisation - Cabinet approved the formation of an independent and separately funded organisation for the conduct of CBRE IEDD and Explosive Ordnance Disposal (EOD). [CAB Min (05) 27/4 dated 25 Jul 05]. The establishment of this dedicated CBRE IEDD/EOD unit will be set up over the next three to five years. The set up of the unit will not detract from the ability to respond to IEDD and CBRE incidents in the three Central Business Districts (CBDs) of Auckland, Wellington and Christchurch. Although CBRE IEDD is a NZDF responsibility directed by Government, Army has been designated the "lead Service". Navy and Air Force will provide trained manpower and specialist support for CBRE IEDD/EOD, as required. | |||
Army will also maintain a SAS Squadron to support the framework of a brigade group for training in New Zealand. | Available | Delivered | Available |
Deployment Impacts: | |||
|
|||
|
|||
Preparedness - Special Operations Forces: Employment Context |
|||
Security Challenges and Defence Tasks in New Zealand and its environs |
|||
Terrorist and Asymmetric Threats (EC 1D) | |||
Special Forces | Fully Prepared | Fully Prepared | Fully Prepared |
Counter-Terrorist Forces | Fully Prepared | Fully Prepared | Fully Prepared |
CBRE / IEED | Fully Prepared | Fully Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the South Pacific |
|||
State failure or fragility leading to internal conflict and/or humanitarian crisis (EC 2 C) | |||
Special Forces | Fully Prepared | Fully Prepared | Fully Prepared |
Challenges to legitimate governments, including civil war and secessionist conflict (EC 2E) | |||
Special Forces | Fully Prepared | Fully Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in the Asia-Pacific Region |
|||
Interstate Conflict (EC 4F) | |||
Special Forces | Fully Prepared | Fully Prepared | Fully Prepared |
Security Challenges to New Zealand's Interests in Global Peace and Security |
|||
Terrorist Threats (EC 5D) | |||
Special Forces | Fully Prepared | Fully Prepared | Fully Prepared |
Note - The Key Measurement Areas (Readiness, Combat Viability, Sustainability and Deployability), the Performance Rating Scale, and the Employment Contexts (ECs) are explained earlier in this part.
Part 6 - Details and Expected Results for Capital Expenditure#
Part 6.1 - Departmental Capital Expenditure#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Continuation of the upgrade of military capabilities, the restoration of existing infrastructure and the building of new infrastructure; all in accordance with the Defence Long-Term Development Plan (LTDP). | New Zealand Defence Force Capital Expenditure |
New Zealand Defence Force - Capital Expenditure PLA (M22)
Scope of Appropriation
Capital Expenditure
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Forests/Agricultural | - | - | - |
Land | - | - | - |
Property, Plant and Equipment | 381,833 | 381,833 | 671,853 |
Intangibles | 6,533 | 6,533 | 5,999 |
Other | - | - | - |
Total Appropriation |
388,366 | 388,366 | 677,852 |
Forests/Agricultural | - | - | - |
Land | - | - | - |
Property, Plant and Equipment | 381,833 | 381,833 | 671,853 |
Intangibles | 6,533 | 6,533 | 5,999 |
Other | - | - | - |
Total Appropriation |
388,366 | 388,366 | 677,852 |
Reasons for Change in Appropriation
This appropriation will increase by $289.486 million for 2009/10. This reflects the year specific nature of capital expenditure and the increase consists of:
- Specialised Military Equipment (SME) related payments to the Ministry of Defence (MoD) expected to exceed the 2008/09 payments by some $214 million, and
- increased expenditure of some $84 million expected to be undertaken on NZDF managed capital projects in 2009/10.
Expected Results
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
|
Improved Military Capability and Infrastructure | $388 million | $388 million | $678 million |
Performance Information for Appropriations Vote Foreign Affairs and Trade#
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Foreign Affairs (M34)
ADMINISTERING DEPARTMENT: Ministry of Foreign Affairs and Trade
MINISTER RESPONSIBLE FOR MINISTRY OF FOREIGN AFFAIRS AND TRADE: Minister of Foreign Affairs
Part 1 - Summary of the Vote#
Part 1.1 - Overview of the Vote
The Minister of Foreign Affairs is responsible for appropriations in the Vote for the 2009/10 financial year covering the following:
- a total of over $363 million on purchasing services in the spheres of foreign affairs and trade from the Ministry of Foreign Affairs and Trade
- a total of nearly $13 million on purchasing Antarctic research and support from the New Zealand Antarctic Institute
- a total of nearly $2 million to the Asia New Zealand Foundation for the promotion of Asian skills and relationships
- a total of over $1 million to the Pacific Cooperation Foundation for the promotion of mutual understanding and constructive linkages between New Zealanders and other countries and people of the Pacific
- a total of nearly $52 million on subscriptions to international organisations
- a total of over $1 million on payments in accordance with the Diplomatic Privileges and Immunities Act 1968
- a total of $100,000 on payments made on behalf of other governments and international organisations, specifically the Government of Tokelau
- a total of nearly $61 million on departmental capital expenditure
- a total of $300,000 capital contribution to the New Zealand Antarctic Institute (NZAI) for the upgrade or replacement of the Scott Base buildings and services infrastructure.
The Ministry expects to collect $100,000 of Crown revenue in 2009/10, which is for recovery of payments made on behalf of the Government of Tokelau.
Details of these appropriations are set out in Parts 2-6 below.
Part 1.2 - High-Level Objectives of the Vote#
Vote Foreign Affairs and Trade provides the Government with policy advice, advocacy, representation and other services directed at managing, advancing and protecting New Zealand's foreign affairs and trade interests in its relations with other countries and groups of countries and in its membership of international institutions. The Vote contributes in key ways to the achievement of the Government's driving goal to grow the economy in order to deliver greater prosperity, security and opportunities to all New Zealanders.
Government Priorities and Outcomes - Links to Appropriations#
Government Priorities | Government Outcomes | Appropriations |
---|---|---|
Strengthen New Zealand's key bilateral relationships to support our security and economic aspirations. | New Zealand's security and economic interests safeguarded through its security and economic relationships. | Pacific Security Fund. |
Policy Advice and Representation - International Institutions. | ||
Policy Advice and Representation - Other Countries. | ||
Intensify efforts to secure the long-term security and economic growth of the South Pacific and key partner countries in the region. | New Zealand's security and economic interests safeguarded through its security and economic relationships. | Pacific Security Fund. |
Policy Advice and Representation - International Institutions. | ||
Policy Advice and Representation - Other Countries. | ||
Pursue a rich agenda of trade negotiations that will deliver growth opportunities for the future. | Economic growth and international competitiveness advanced through New Zealand's international connections. | Policy Advice and Representation - International Institutions. |
Policy Advice and Representation - Other Countries. | ||
Promotional Activities - Other Countries. | ||
Strengthen the promotion of New Zealand goods and services, and opportunities in trade and investment, through more determined and efficient NZ Inc approaches. | Economic growth and international competitiveness advanced through New Zealand's international connections. | Policy Advice and Representation - International Institutions. |
Policy Advice and Representation - Other Countries. | ||
Promotional Activities - Other Countries. | ||
Work within the multilateral system to achieve New Zealand goals, particularly in the areas of security, resource diplomacy, and climate change. | Transboundary solutions and effective international rules promoted. | Policy Advice and Representation - International Institutions. |
Policy Advice and Representation - Other Countries. | ||
Deliver high quality consular services for New Zealanders travelling abroad. | The rights of New Zealanders abroad protected. | Consular Services. |
Part 1.3 - Trends in the Vote#
The Trends in Crown Revenue Chart will be drawn here in the printed output. Summary of Financial Activity#
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 | 192,695 | 212,935 | 260,106 | 276,691 | 319,525 | 319,100 | 363,010 | 15,915 | 378,925 | 388,962 | 393,698 | 398,848 |
Benefits and Other Unrequited Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Other Expenses | 32,758 | 37,040 | 39,604 | 42,703 | 51,923 | 51,923 | - | 52,799 | 52,799 | 52,591 | 52,883 | 52,733 |
Capital Expenditure | 16,904 | 23,327 | 19,474 | 26,563 | 42,284 | 35,245 | 60,512 | 300 | 60,812 | 61,518 | 30,155 | 38,725 |
Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
Total Appropriations |
242,357 | 273,302 | 319,184 | 345,957 | 413,732 | 406,268 | 423,522 | 69,014 | 492,536 | 503,071 | 476,736 | 490,306 |
Crown Revenue and Capital Receipts |
||||||||||||
Tax Revenue | - | - | - | - | - | - | N/A | - | - | - | - | - |
Non-Tax Revenue | 194 | 373 | 346 | 1,488 | 100 | 100 | N/A | 100 | 100 | 100 | 100 | 100 |
Capital Receipts | - | - | - | - | - | - | N/A | - | - | - | - | - |
Total Crown Revenue and Capital Receipts |
194 | 373 | 346 | 1,488 | 100 | 100 | N/A | 100 | 100 | 100 | 100 | 100 |
New Policy Initiatives#
Policy Initiative | Appropriation | 2008/09 Budgeted $000 |
2009/10 Budget $000 |
2010/11 Estimated $000 |
2011/12 Estimated $000 |
2012/13 Estimated $000 |
---|---|---|---|---|---|---|
Baseline Savings | Administration of Diplomatic Privileges and Immunities (M34) | (5) | (3) | (6) | (15) | (14) |
Departmental Output Expenses | ||||||
Consular Services (M34) | (376) | (257) | (1,208) | (1,061) | (2,107) | |
Departmental Output Expenses | ||||||
Pacific Security Fund (M34) | (28) | (19) | (381) | 14 | (178) | |
Departmental Output Expenses | ||||||
Policy Advice and Representation - International Institutions (M34) | (1,927) | (1,318) | (2,323) | (4,510) | (7,317) | |
Departmental Output Expenses | ||||||
Policy Advice and Representation - Other Countries (M34) | (7,145) | (4,890) | (16,212) | (26,239) | (36,770) | |
Departmental Output Expenses | ||||||
Promotional Activities - Other Countries | (19) | (13) | (14) | (35) | (45) | |
Departmental Output Expenses | ||||||
Total Initiatives | (9,500) | (6,500) | (20,144) | (31,846) | (46,431) |
Analysis of Significant Trends#
Total Vote: All Appropriations
Significant changes in departmental and non-departmental appropriations in Vote Foreign Affairs and Trade are discussed briefly below.
- Trends in total voted and actual expenses and capital expenditure
- Source: Ministry of Foreign Affairs and Trade
The table of departmental and non-departmental flows reflects the impact of periodic property revaluations; one-off capital contributions and lower Crown revenue and receipts. The underlying trend, however, is an overall increase in the amount appropriated for outputs and other expenses mainly reflecting capability funding, higher property values, tax on overseas terms and conditions of service and approved new initiatives.
Departmental Output Expenses
The key changes from 2004/05 to 2009/10 are as follows:
- Funding Increases: total $113.080 million mainly for additional resources to deepen the Ministry's capability and capacity through additional staff, increases in support infrastructure and cost increases ($90.354 million), a new post in Brisbane in 2008/09 ($1.051 million), a new post in Cairo in 2005/06 ($3.107 million), a new post in Dili in 2006/07 ($1.946 million), a new post in Melbourne in 2008/09 ($882,000), a new post in Stockholm in 2008/09 ($2.915 million), a new post in Warsaw ($606,000), and implementing security enhancements to ensure staff and their families and property are safe, secure and protected ($6.003 million).
- Fiscally Neutral Changes: the main changes since 2004/05 include: foreign exchange rate movements ($4.259 million), rate of capital charge lowered from 8.0% to 7.5% (decrease of $1.683 million), higher capital charge and depreciation following revaluation of properties ($13.239 million), higher capital charge arising from retention of surplus on unrealised derivative gain ($752,000), tax on overseas terms and conditions ($41.176 million) and transfer of chanceries and residences back to the Ministry from the Treasury in 2005/06 ($9.638 million).
Non-Departmental Other Expenses
Non-departmental other expenses have increased by $19.865 million from 2004/05 to 2009/10. The key changes have been:
- The cost of subscriptions to international organisations has increased by $19.207 million, from $32.342 million in 2004/05 to $51.549 million in 2009/10. This increase mainly reflects higher assessed contributions to UN peacekeeping activities, partially offset by exchange rate movements.
Departmental Capital Expenditure
- In 2004/05 the Ministry received $2.660 million for the establishment of a new post in Warsaw, Poland.
- In 2005/06 the Ministry received $2.834 million for the establishment of a new post in Cairo, Egypt, $2.751 million for capital expenditure in chanceries and residences previously rented from Treasury, $2.379 million to fit-out new larger chanceries in Los Angeles and Shanghai, $1.993 million to design and implement a global Emergency Response and Consular Management Information System and $10.023 million to implement the capital recommendations of security assessments of New Zealand Government owned and leased properties offshore driven by security and safety needs.
- In 2006/07 the Ministry received $3.429 million to upgrade the New Zealand Consulate-General in Dili to an Embassy, $7 million first tranche for capital expenditure to construct chanceries in Ankara, Honiara and Suva and establish a lower classified Local Area Network (LAN) alongside the Ministry's current single Confidential LAN, and $1 million for capital expenditure to implement the capital plan in chanceries and residences previously rented from Treasury.
- In 2007/08 the Ministry received $750,000 for Apia Chancery agency accommodation, a further $3.169 million to upgrade the New Zealand Embassy in Dili, $14.550 million second tranche for capital expenditure to construct chanceries in Ankara, Honiara and Suva and establish a lower classified Local Area Network (LAN) alongside the Ministry's current single Confidential LAN, and $1 million for capital expenditure to implement the capital plan in chanceries and residences previously rented from Treasury.
- Refer to Part 6.1 for details of the capital expenditure the Ministry will incur in 2009/10.
Non-Departmental Capital Expenditure
- The New Zealand Antarctic Institute received $1.500 million in 2006/07, $2.400 million in 2007/08 and $800,000 in 2008/09 to maintain the Scott Base buildings and services infrastructure.
- Refer to Part 6.2 for details of the capital expenditure the New Zealand Antarctic Institute will receive in 2009/10.
Crown Revenue and Receipts Trends
- In 2007/08 the Ministry received a refund of $1.466 million for fringe benefit tax overpaid in a previous financial year.
- The decrease in Crown revenue and receipts reflects a reduction in the number and value of payments Tokelau is asking the Ministry to process on its behalf.
Analysis by Appropriation Type: 2009/10 and 2008/09 Compared
Departmental output expenses
Annual appropriations are expected to increase by $61.305 million (20.3%) in 2009/10 relative to 2008/09. The increase is mainly attributable to an increase in baseline resources to deepen the Ministry's capacity through additional staff, increases in support infrastructure and increases in contributions to various funds ($39.242 million), higher overseas costs caused by the depreciation of the New Zealand dollar ($5.503 million), WTO Negotiations and Bilateral Closer Economic Partnerships/Free Trade Agreements ($1.169 million), additional tax on overseas terms and conditions of service ($1.874 million), higher capital charge arising from retention of surplus on unrealised gain ($376,000), and higher capital charge and depreciation from triennial property revaluation ($13.787 million).
Non-departmental output expenses
Annual appropriations are expected to decrease by $1.905 million (10.7%) in 2009/10 relative to 2008/09. New Zealand Antarctic Institute funding has increased by $495,000 for implementing wind farm technology at Scott Base and maintaining Antarctic logistics support capability. Asia New Zealand Foundation's time limited funding is stopping for strategy implementation. Pacific Cooperation Foundation's funding has increased by $53,000 following an increase in baseline funding in 2009/10.
Non-departmental other expenses
The annual appropriation is expected to increase by $876,000 (1.7%) in 2009/10 relative to 2008/09 reflecting increased payments for Subscriptions to International Organisations due to increases in payments to the United Nations for its regular budget assessment and for UN peacekeeping missions mandated by the Security Council ($1.376 million) and one-off funding provided to victims of the Victorian bushfire (decrease of $500,000).
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Outcome: New Zealand's security and economic interests safeguarded through its security and economic relationships | Pacific Security Fund. |
Impact: | Policy Advice and Representation - International Institutions. |
|
Policy Advice and Representation - Other Countries. |
Outcome: Economic growth and international competitiveness advanced through New Zealand's international connections | Policy Advice and Representation - International Countries. |
Impact: | Policy Advice and Representation - Other Countries. |
|
Promotional Activities - Other Countries. |
Outcome: Transboundary solutions and effective international rules promoted. | Policy Advice and Representation - International Institutions. |
Impact: | Policy Advice and Representation - Other Countries. |
|
Promotional Activities - Other Countries. |
Objective: To provide consular services to New Zealanders abroad. | Consular Services. |
Impact: | |
|
|
Objective: To administer the Government's responsibilities and obligations under the Vienna Conventions on Diplomatic and Consular Relations. | Administration of Diplomatic Privileges and Immunities. |
Impact: Efficient delivery of services meets New Zealand's obligations and contributes to reciprocal benefits from partner governments. | |
Objective: To provide services for other New Zealand agencies with overseas interests | Services for Other New Zealand Agencies Overseas. |
Impact: Efficient provision of services by the Ministry's overseas posts helps multiply the reach and impact of other agencies' external engagement, and delivers economies of scale and value for money. |
Administration of Diplomatic Privileges and Immunities (M34)
Scope of Appropriation
Expenses and Revenue
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 503 | 503 | 518 |
Revenue from Crown | 503 | 503 | 518 |
Revenue from Other | - | - | - |
Reasons for Change in Appropriation
This appropriation will increase by $15,000 to $518,000 for 2009/10. The movement arises from:
- Funding Package for Response to Foreign and Trade Policy Changes (increase of $13,000).
- Capital charge and depreciation following triennial property revaluation (increase of $2,000).
Output Performance Measures and Standards
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
All arrival and departure documentation completed within 10 working days. | N/A | 100% | 100% |
All documentation for Head of Mission appointments processed within a timeframe of three weeks. | N/A | 100% | 100% |
All programme of calls requested by Heads of Mission processed within 10 working days. | N/A | 100% | 100% |
All tax exemptions/rates refund requests processed within four weeks. | N/A | 100% | 100% |
Advice provided, on cases or disputes involving issues of privileges or immunities is accurate and within the parameters of international and domestic law and contributes to resolution of the issues. | N/A | Advice accurate and contributes to resolution of issues | Advice accurate and contributes to resolution of issues |
Compliance with the Quality, Quantity and Timeliness Standards for Analysis and Advice (refer Conditions on Use of Appropriation) and confirmed by the Minister twice a year. | Rated as meeting expectations | Rated as meeting expectations | Rated as meeting expectations |
Conditions on Use of Appropriation
Reference | Conditions |
---|---|
Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action. | |
Quality | All reports will comply with the Ministry's quality standards for analysis and advice, ie, The purpose of advice will be clearly stated; assumptions made explicit; arguments will be logical; all material facts will be included and accurate; a range of options will be presented and assessed for benefits; consultation will be undertaken; implementation issues will be considered and professionally presented. Representation, negotiation and implementation will effectively convey and advance the Government's policies and views. Quality assurance measures will be implemented through managers directing the completion of work, maintaining approval processes, ensuring deadlines are met, and controlling quality either directly or through delegation procedures. This will be supported by an individual performance management system and senior management oversight of unit performance through internal operational planning and evaluation. Confirmation of Ministerial satisfaction will be obtained twice a year. Responses to Ministerial correspondence, Parliamentary Questions, and requests under the Official Information Act will be well presented. |
Quantity | Management of relationships with countries and international and regional organisations, and of issues arising, will be undertaken as agreed with the Minister. Priorities for each issue and relationship will be translated into actual work programmes for each unit in the Ministry incorporating goals, action steps and impact measures. Briefings and reports on external events and issues will be provided for Ministers, Members of Parliament, Select Committees, and other organisations and groupings as appropriate. Responses will be prepared for all Ministerial correspondence, Parliamentary Questions and requests under the Official Information Act. |
Timeliness | Timeframes will be agreed between the Minister and the Secretary of Foreign Affairs and Trade for the financial year. Advice will be delivered within the agreed and/or statutory timeframes so that Ministers have sufficient time to consider the issues and take appropriate action. Where agreed deadlines will not be met, extensions will be formally requested. Substantive responses to Ministerial correspondence will be prepared within 14 days, unless otherwise agreed. Responses to Parliamentary Questions, requests under the Official Information Act, and Cabinet papers will be prepared in time for the Minister to consider and review the response prior to the due date. |
Diplomatic Privileges and Immunities Act 1968 and Consular Privileges and Immunities Act 1971 | These Acts gave effect to the 1961 Vienna Convention on Diplomatic Relations and the 1963 Vienna Convention on Consular Relations and set out New Zealand's rights and obligations under the Conventions. |
Current and Past Policy Initiatives
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 |
---|---|---|---|---|---|---|
Baseline Savings | 2008/09 | (5) | (3) | (6) | (15) | (14) |
Funding Package for Response to Foreign and Trade Policy Changes | 2008/09 | 9 | 29 | 38 | 46 | 52 |
Remuneration: Flow on Cost to Overseas Allowances | 2005/06 | 27 | 27 | 27 | 27 | 27 |
Remuneration: Market Movement | 2005/06 | 36 | 36 | 36 | 36 | 36 |
Tax on Overseas Conditions of Service | 2005/06 | 16 | 16 | 16 | 16 | 16 |
Consular Services (M34)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 12,577 | 12,577 | 15,595 |
Revenue from Crown | 12,227 | 12,227 | 15,245 |
Revenue from Other | 350 | 350 | 350 |
Reasons for Change in Appropriation#
This appropriation will increase by $3.018 million to $15.595 million for 2009/10. The movement arises from:
- Foreign exchange and overseas inflation (increase of $130,000).
- Taxation on conditions of overseas service (increase of $68,000).
- Funding Package for Response to Foreign and Trade Policy Changes (increase of $2.330 million).
- Capital charge and depreciation following triennial property revaluation (increase of $490,000).
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Compliance with the Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year. | Rated as meeting expectations | Rated as meeting expectations | Rated as meeting expectations |
Consular services provided as follows: | |||
Consular services provided to distressed New Zealanders overseas. | N/A | 1,900 | 2,050 |
General consular advice. | N/A | 37,500 | 43,000 |
Notarial services. | N/A | 8,700 | 9,700 |
Consular emergency response. | N/A | 3 | 3 |
No justified complaints from the public or travel industry about consular services. | N/A | - | - |
All contingencies managed in accordance with internal planning procedures and any lessons learned incorporated into procedures or manuals. | N/A | 100% | 100% |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Baseline Savings | 2008/09 | (376) | (257) | (1,208) | (1,061) | (2,107) |
Funding Package for Response to Foreign and Trade Policy Changes |
2007/08 | 2,104 | 4,315 | 5,488 | 6,036 | 6,927 |
Consular Management Information System | 2005/06 | 408 | 408 | 408 | 408 | 408 |
Crown Property Portfolio Transfer from Treasury | 2005/06 | 190 | 190 | 190 | 190 | 190 |
Remuneration: Flow-on Cost to Overseas Allowances | 2005/06 | 108 | 108 | 108 | 108 | 108 |
Remuneration: Market Movement | 2005/06 | 142 | 142 | 142 | 142 | 142 |
Tax on Overseas Conditions of Service | 2005/06 | 1,362 | 1,430 | 1,430 | 1430 | 1430 |
Pacific Security Fund (M34)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 3,170 | 3,170 | 3,245 |
Revenue from Crown | 3,170 | 3,170 | 3,245 |
Revenue from Other | - | - | - |
Reasons for Change in Appropriation#
This appropriation will increase by $75,000 to $3.245 million for 2009/10. This movement arises from a Funding Package for Response to Foreign and Trade Policy Changes.
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
All programmes and project bids are assessed as consistent with the Pacific Security Strategy, and this is confirmed by periodic audit. | All bids consistent with primary objective of Strategy. | 100% | 100% |
Funds are accessed, disbursed and monitored in accordance with the management process established by the Pacific Security Coordinating Committee. | Expenditure consistent with standard MOU between MFAT and sponsoring agency. | 100% | 100% |
Compliance with the Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year. | Rated as meeting expectations. | Rated as meeting expectations. | Rated as meeting expectations. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Baseline Savings | 2008/09 | (28) | (19) | (381) | 14 | (178) |
Funding Package for Response to Foreign and Trade Policy Changes | 2008/09 | 314 | 380 | 761 | 747 | 925 |
Remuneration: Market Movement | 2005/06 | 4 | 4 | 4 | 4 | 4 |
Remuneration: Flow-on Cost to Overseas Allowances | 2005/06 | 3 | 3 | 3 | 3 | 3 |
Pacific Security Fund | 2004/05 | 2,667 | 2,667 | 2,667 | 2,667 | 2,667 |
Policy Advice and Representation - International Institutions (M34)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 49,177 | 49,177 | 56,077 |
Revenue from Crown | 49,177 | 49,177 | 56,077 |
Revenue from Other | - | - | - |
Reasons for Change in Appropriation#
This appropriation will increase by $6.900 million to $56.077 million for 2009/10. This movement arises from:
- Capital Charge rates changes (decrease of $1,000).
- Funding Package for Response to Foreign and Trade Policy Changes (increase of $4.862 million).
- Foreign exchange and overseas inflation movements (increase of $1.083 million).
- Higher capital charge and depreciation following triennial property revaluation (increase of $696,000).
- Taxation on conditions of overseas service (increase of $260,000).
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Compliance with the Quality, Quantity and Timeliness Standards for Analysis, Advice, Representation and Action (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year. | Rated as meeting expectations | Rated as meeting expectations | Rated as meeting expectations |
The Minister is satisfied with the quality of policy advice received from the Ministry. | N/A | 100% | 100% |
Ministry reporting and analysis valued by other New Zealand government agencies with external interests. | N/A | 100% | 100% |
Ministry's negotiation of bilateral and multilateral agreements (including trade agreements) carried out to Ministers' satisfaction. | N/A | 100% | 100% |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Baseline Savings. | 2008/09 | (1,927) | (1,318) | (2,323) | (4,510) | (7,317) |
Funding Package for Response to Foreign and Trade Policy Changes. | 2007/08 | 7,967 | 12,790 | 16,413 | 18,742 | 21,836 |
Asia Security and Governance Fund. | 2006/07 | 700 | 700 | 700 | 700 | 700 |
Climate Change: Increase in Capacity. | 2006/07 | 378 | 378 | 378 | 378 | 378 |
Disarmament: NZ National Data Centre. | 2006/07 | 150 | 150 | 150 | 150 | 150 |
Tax on Overseas Conditions of Service. | 2005/06 | 5,182 | 5,442 | 5,442 | 5,442 | 5,442 |
Remuneration: Market Movement. | 2005/06 | 785 | 785 | 785 | 785 | 785 |
Remuneration: Flow-on Cost to Overseas Allowances. | 2005/06 | 596 | 596 | 596 | 596 | 596 |
Disarmament: G8 Global Partnership. | 2005/06 | 685 | 685 | 685 | 685 | 685 |
Crown Property Portfolio Transfer from Treasury. | 2005/06 | 415 | 415 | 415 | 415 | 415 |
Policy Advice and Representation - Other Countries (M34)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 221,910 | 221,485 | 272,567 |
Revenue from Crown | 221,595 | 221,595 | 272,252 |
Revenue from Other | 315 | 315 | 315 |
Reasons for Change in Appropriation#
This appropriation will increase by $50.657 million to $272.567 million for 2009/10. This movement arises from:
- Capital charge rate changes (decrease of $4,000).
- Dili upgrading to Embassy status (increase of $17,000).
- Foreign exchange and overseas inflation movements (increase of $3.896 million).
- Physical security and agency accommodation (increase of $28,000).
- Taxation on conditions of overseas service (increase of $1.546 million).
- Market access forestry (decrease of $490,000).
- Resources for WTO, CEPs/FTAs (increase of $1.275 million).
- Crown assets portfolio transfer (increase of $80,000).
- Funding Package for Response to Foreign and Trade Policy Changes (increase of $31.927 million).
- Capital charge arising from retention of surplus on unrealised derivative gain (increase of $376,000).
- Capital charge and depreciation following triennial property revaluation (increase of $12.599 million).
- Transfer to Vote State Services to fund the Identity Verification Service (decrease of $593,000).
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Compliance with the Quality, Quantity and Timeliness Standards for Analysis and Advice (refer Departmental Output Expense Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year. | Rated as meeting expectations | Rated as meeting expectations | Rated as meeting expectations |
The Minister is satisfied with the quality of policy advice received from the Ministry. | N/A | 100% | 100% |
Ministry reporting and analysis valued by other New Zealand government agencies with external interests. | N/A | 100% | 100% |
Ministry's negotiation of bilateral agreements (including trade agreements) carried out to Ministers' satisfaction. | N/A | 100% | 100% |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Baseline Savings. | 2008/09 | (7,145) | (4,890) | (16,212) | (26,239) | (36,770) |
Funding Package for Response to Foreign and Trade Policy Changes. | 2007/08 | 37,455 | 67,131 | 84,537 | 98,086 | 113,633 |
Dili: Upgrading to Embassy Status. | 2007/08 | 1,929 | 1,946 | 1,943 | 1,963 | 1,963 |
Physical Security & Agency Accommodation. | 2007/08 | (166) | (110) | (110) | (110) | (110) |
Diplomatic Tools and Tradecraft. | 2006/07 | 1,324 | 1,324 | 1,324 | 1,324 | 1,324 |
Latin America Strategy Fund. | 2006/07 | 250 | 250 | 250 | 250 | 250 |
Security: Information Systems and Physical. | 2006/07 | 4,331 | 4,331 | 4,331 | 4,331 | 4,331 |
Cairo Post Operating Costs. | 2005/06 | 3,107 | 3,107 | 3,107 | 3,107 | 3,107 |
Chancery Costs: Other Government Agencies. | 2005/06 | 721 | 721 | 721 | 721 | 721 |
Crown Property Portfolio Transfer from Treasury. | 2005/06 | 8,409 | 8,409 | 8,409 | 8,409 | 8,409 |
Maximising Gains from Trade Negotiations. | 2005/06 | 3,318 | 2,494 | 2,494 | 2,494 | 2,494 |
Physical and Personnel Security Measures. | 2005/06 | 2,611 | 2,611 | 2,611 | 2,611 | 2,611 |
Regional Assistance Mission to the Solomon Islands Deputy Position. | 2005/06 | 287 | 287 | 287 | 287 | 287 |
Remuneration: Flow-on Cost to Overseas Allowances. | 2005/06 | 1,903 | 1,903 | 1,903 | 1,903 | 1,903 |
Remuneration: Market Movement. | 2005/06 | 2,510 | 2,510 | 2,510 | 2,510 | 2,510 |
Tax on Overseas Conditions of Service. | 2005/06 | 30,925 | 32,471 | 32,471 | 32,471 | 32,471 |
Warsaw Post Operating Costs. | 2004/05 | 3,009 | 3,009 | 3,009 | 3,009 | 3,009 |
Policy Advice and Representation - Other Countries PLA (M34)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 39 | 39 | 41 |
Revenue from Crown | 39 | 39 | 41 |
Revenue from Other | - | - | - |
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
New Zealand Government Superannuation Scheme for locally recruited staff in the United States of America financially viable. | Fully funded | Fully funded | Fully funded |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Section 11 of the Foreign Affairs Act 1988. | Limited to schemes approved by the Minister of Finance. |
Promotional Activities - Other Countries (M34)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 780 | 780 | 811 |
Revenue from Crown | 780 | 780 | 811 |
Revenue from Other | - | - | - |
Reasons for Change in Appropriation#
This appropriation will increase by $31,000 to $811,000 for 2009/10. This movement arises from a Funding Package for Response to Foreign and Trade Policy Changes.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Compliance with the Quality, Quantity and Timeliness Standards for Analysis and Advice (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year. | Rated as meeting expectations | Rated as meeting expectations | Rated as meeting expectations |
All activities are in conformity with Government objectives and criteria. | N/A | 100% | 100% |
All activities assessed as being of high quality by internal review. | N/A | 100% | 100% |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Baseline Savings. | 2008/09 | (19) | (13) | (14) | (35) | (45) |
Funding Package for Response to Foreign Trade and Policy Changes. | 2008/09 | 13 | 38 | 58 | 76 | 95 |
Remuneration: Flow on Cost to Overseas Allowances. | 2005/06 | 4 | 4 | 4 | 4 | 4 |
Remuneration: Market Movement. | 2005/06 | 5 | 5 | 5 | 5 | 5 |
Foreign Direct Investment Generic Promotion. | 2004/05 | 250 | 250 | 250 | 250 | 250 |
Services for Other New Zealand Agencies Overseas (M34)#
Scope of Appropriation#
Expenses and Revenue#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 13,549 | 13,549 | 14,156 |
Revenue from Crown | - | - | - |
Revenue from Other | 13,549 | 13,549 | 14,156 |
Reasons for Change in Appropriation#
This appropriation will increase by $607,000 to $14.156 million for 2009/10. This movement arises from:
- Foreign exchange and overseas inflation movements (increase of $394,000).
- Increase in the level of services purchased by other departments and agencies (increase of $213,000).
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Compliance with the Quality, Quantity and Timeliness Standards for Analysis and Advice (refer Departmental Output Expense Administration of Diplomatic Privileges and Immunities Conditions on Use of Appropriation) and confirmed by the Minister twice a year. | Rated as meeting expectations | Rated as meeting expectations | Rated as meeting expectations |
Number of agreements negotiated for the delivery of international administrative services to other agencies with representatives overseas on whose behalf the Ministry performs agreed services (eg, Identity Services). | N/A | 154 fee schedules negotiated | 154 fee schedules negotiated |
All services delivered in accordance with performance standards set out in agency agreements. | N/A | No justifiable complaints received | No justifiable complaints received |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Performance delivery as set out in agency agreements and/or as agreed at overseas posts with agency managers. | Any issues resolved by mutual agreement. |
Part 2.2 - Non-Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives#
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Outcome: Enhanced New Zealand Antarctic scientific research and strategic programme of national Antarctic activities. | Antarctic Research and Support. |
Outcome: Mutual understanding and constructive linkages between New Zealanders and Pacific peoples. | Pacific Cooperation Foundation. |
Outcome: Improved knowledge among New Zealanders about Asian countries and the development of the necessary skills required by New Zealanders in their dealings with Asia. | Promotion of Asian Skills and Relationships. |
Antarctic Research and Support (M34)#
Scope of Appropriation
Expenses
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 12,473 | 12,473 | 12,968 |
Reasons for Change in Appropriation
This appropriation will increase by $495,000 to $12.968 million for 2009/10. This movement arises from:
- Logistical support for ITASE project (increase of $175,000).
- Implementing wind-farm technology at Scott Base (increase of $320,000).
Output Performance Measures and Standards
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Proportion of New Zealand's Antarctic programme allocated to science (based on numbers of people travelling to Antarctica with the Programme). | N/A | 46% | 45% |
Implement a pilot three turbine wind farm in Antarctica to provide renewable energy to Scott Base and the United States McMurdo Station. | N/A | Wind farm project delivered to agreed project milestones | Wind farm project delivered to agreed project milestones |
Number of peer-reviewed scientific papers produced by Antarctica New Zealand supported researchers. | N/A | 54 publications | At least 70 publications |
Number of times scientific papers published over past 6 years, produced by Antarctica New Zealand supported researchers, are cited in other scientific papers. | N/A | 817 citations | At least 900 citations |
Conditions on Use of Appropriation
Reference | Conditions |
---|---|
Output Agreement between the Minister and NZAI. | Outputs delivered by agreed target dates and as specified in the Output Agreement between the Minister and NZAI. |
Current and Past Policy Initiatives
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 |
---|---|---|---|---|---|---|
NZAI: Implementing Wind Energy Technology at Scott Base. | 2008/09 | - | 320 | 320 | 320 | 320 |
Maintaining Antarctic Logistics Support Capability. | 2007/08 | 1,600 | 1,600 | 1,600 | 1,600 | 1,600 |
Antarctic Aircraft and Helicopter Operations. | 2006/07 | 762 | 762 | 762 | 762 | 762 |
Capital Expenditure Programme Flow On Costs for Antarctic Operations. | 2006/07 | 400 | 400 | 400 | 400 | 400 |
International Influence and Leadership. | 2006/07 | 50 | 50 | 50 | 50 | 50 |
Logistical Support for ITASE Project. | 2006/07 | 325 | 500 | 500 | 500 | 500 |
Existing Output Cost Pressures. | 2005/06 | 880 | 880 | 880 | 880 | 880 |
ANDRILL International Science Project. | 2004/05 | 100 | 100 | 100 | 100 | 100 |
Pacific Cooperation Foundation (M34)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 1,347 | 1,347 | 1,400 |
Reasons for Change in Appropriation#
This appropriation will increase by $53,000 to $1.400 million for 2009/10. This movement arises from an increase in baseline funding for the Pacific Cooperation Foundation.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Fostering understanding of the Pacific: | |||
|
at least 20% increase from the previous year total of 800,000 hits | Increased by 20% from previous year | at least 40% increase from 2008/09 |
Promoting economic sustainability in the Pacific: | |||
|
at least 10% increase from the previous year total of 15,000 | Increased by 10% from previous year | at least 30% increase from 2008/09 |
Providing informed, independent commentary and encouraging debate: | |||
|
6 | 7 | 6 |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
2008/09 Purchase Agreement | Outputs delivered by agreed target dates and as specified in the Purchase Agreement between the Minister and Pacific Cooperation Foundation. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Increase in Baseline Funding | 2008/09 | 1,347 | 1,400 | 1,400 | 1,400 | 1,400 |
Promotion of Asian Skills and Relationships (M34)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 4,000 | 4,000 | 1,547 |
Reasons for Change in Appropriation#
This appropriation will decrease by $2.453 million to $1.547 million for 2009/10. This movement arises from the Foundation using accumulated funds to partly fund its 2009/10 strategy implementation. A continuation of current funding is contingent on a review of strategy implementation.
Output Performance Measures and Standards#
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Level of Asia literacy and engagement with Asia by Asia:NZ Foundation constituents (surveying). | N/A | Increase on scale | Increase on scale |
Level of New Zealand public awareness of the importance of Asia to New Zealand (social research). | N/A | Increase on scale | Increase on scale |
Increase in engagement with Asia, including through Track II, business and other linkages. | N/A | Increase on scale | Increase on scale |
Government priorities in Asia supported through Asia:NZ Foundation programmes. | N/A | Increase on scale | Increase on scale |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Output Agreement between the Minister and Asia New Zealand Foundation. | Outputs delivered by agreed target dates and as specified in the Output Agreement between the Minister and Asia New Zealand Foundation. |
2007 Review. | Progress report on implementing recommendations due by June 2009. |
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Increased Funding for Strategy Implementation. | 2008/09 | 2,453 | - | - | - | - |
Summary of Service Providers for Non-Departmental Outputs#
Provider | 2008/09 Budgeted $000 |
2008/09 Estimated Actual $000 |
2009/10 Budget $000 |
Reporting Mechanism |
Expiry of Funding Commitment |
---|---|---|---|---|---|
Crown entities | |||||
New Zealand Antarctic Institute | 12,473 | 12,473 | 12,968 | Provider's annual report | On-going |
Other entities controlled by the Crown | |||||
Asia New Zealand Foundation | 4,000 | 4,000 | 1,547 | Provider's statement of service performance | On-going |
Pacific Cooperation Foundation | 1,347 | 1,347 | 1,400 | Provider's statement of service performance | On-going |
The above table summarises funding to be allocated through Vote Foreign Affairs and Trade 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 or Objectives of Appropriations | Appropriations |
---|---|
Objective: To enhance New Zealand's reputation as a good international citizen demonstrated through compliance with the 1961 Vienna Convention on Diplomatic Relations and the 1963 Vienna Convention on Consular Relations. | Disbursements Made Exemptions from Taxation etc. |
Objective: To meet New Zealand assistance to Tokelau through access to the Ministry's systems for offshore payments. | Payments on Behalf of Other Governments and International Organisations. |
Objective: To enhance New Zealand's reputation for consistent and principled application of international trade, disarmament, environmental sustainability and climate change rules, and human rights is maintained and/or enhanced. | Subscriptions to International Organisations. |
Disbursements Made and Exemptions from Taxation PLA (M34)
Scope of Appropriation
Expenses
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 1,150 | 1,150 | 1,150 |
Conditions on Use of Appropriation
Reference | Conditions |
---|---|
Diplomatic Privileges and Immunities Act 1968. | Approval of Minister of Finance and Minister of Foreign Affairs. |
Payments on Behalf of Other Governments and International Organisations PLA (M34)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 100 | 100 | 100 |
Conditions on Use of Appropriation#
Reference | Conditions |
---|---|
Section 71 of the Public Finance Act 1969. | Approval of the Minister of Finance. |
Subscriptions to International Organisations (M34)#
Scope of Appropriation#
Expenses#
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 50,173 | 50,173 | 51,549 |
Comprising: | |||
|
84 | 84 | 87 |
|
193 | 193 | 208 |
|
4 | 4 | 5 |
|
322 | 322 | 384 |
|
1,900 | 1,900 | 1,900 |
|
198 | 198 | 192 |
|
857 | 857 | 855 |
|
155 | 155 | 162 |
|
29 | 29 | 29 |
|
37 | 37 | 28 |
|
503 | 503 | 476 |
|
9 | 9 | 11 |
|
3,220 | 3,220 | 3,720 |
|
2 | 2 | 2 |
|
1,373 | 1,373 | 1,535 |
|
417 | 417 | 819 |
|
1 | 1 | 2 |
|
28 | 28 | 30 |
|
140 | 140 | 123 |
|
50 | 50 | 65 |
|
578 | 578 | 578 |
|
1,806 | 1,806 | 2,068 |
|
34 | 34 | 37 |
|
3 | 3 | 3 |
|
12 | 12 | 11 |
|
9 | 9 | 9 |
|
3 | 3 | 4 |
|
547 | 547 | 682 |
|
8,519 | 8,519 | 10,161 |
|
29,140 | 29,140 | 27,363 |
Reasons for Change in Appropriation#
This appropriation will increase by $1.376 million to $51.549 million for 2009/10. This movement arises from increased payments for Subscriptions to International Organisations due to increases in payments to the United Nations for its regular budget assessment and for UN peacekeeping missions mandated by the Security Council.
Current and Past Policy Initiatives#
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 |
---|---|---|---|---|---|---|
Global Environment Fund | 2006/07 | 1,215 | 1,215 | 1,215 | 1,173 | 1,173 |
Environment: Climate Change in Developing Countries | 2005/06 | 1,900 | 1,900 | 1,900 | 1,900 | 1,900 |
US/NZ Education Foundation | 2005/06 | 133 | 133 | 133 | 133 | 133 |
Reporting Mechanisms#
Appropriation | Reporting Mechanism |
---|---|
Disbursements Made, Exemptions from Taxation, etc | Not required |
Payments on Behalf of Other Governments and International Organisations | Not required |
Subscriptions to International Organisations | Not required |
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 or Objectives of Appropriations | Appropriations |
---|---|
Objective: To maintain and upgrade capability through replacement and development of property, furniture & fittings, equipment, vehicles, computer hardware and software. | Ministry of Foreign Affairs and Trade - Capital Expenditure. |
Ministry of Foreign Affairs and Trade - Capital Expenditure PLA (M34)
Scope of Appropriation
Capital Expenditure
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Forests/Agricultural | - | - | - |
Land | 1,000 | 1,000 | - |
Property, Plant and Equipment | 27,579 | 26,961 | 46,246 |
Intangibles | 12,905 | 6,484 | 14,266 |
Other | - | - | - |
Total Appropriation |
41,484 | 34,445 | 60,512 |
Forests/Agricultural | - | - | - |
Land | 1,000 | 1,000 | - |
Property, Plant and Equipment | 27,579 | 26,961 | 46,246 |
Intangibles | 12,905 | 6,484 | 14,266 |
Other | - | - | - |
Total Appropriation |
41,484 | 34,445 | 60,512 |
Reasons for Change in Appropriation
This appropriation will increase by $19.028 million to $60.512 million for 2009/10. Capital spending has been re-phased to future years due to delays in starting, progressing and completing various capital projects.
Part 6.2 - Non-Departmental Capital Expenditure#
Intended Impacts, Outcomes and Objectives#
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Objective: To manage Crown Antarctic assets efficiently. | New Zealand Antarctic Institute - Capital Expenditure. |
New Zealand Antarctic Institute (M34)#
Scope of Appropriation
Capital Expenditure
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 800 | 800 | 300 |
Reasons for Change in Appropriation
This appropriation will decrease by $500,000 to $300,000 for 2009/10. This movement is part of a $5 million four-year programme to maintain the Scott Base building and infrastructure.
Current and Past Policy Initiatives
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 |
---|---|---|---|---|---|---|
NZAI - Capital Expenditure Programme Antarctic Operations. | 2006/07 | 800 | 300 | - | - | - |
Reporting Mechanisms#
Appropriation | Reporting Mechanism |
---|---|
New Zealand Antarctic Institute - Capital Expenditure | Annual report of the New Zealand Antarctic Institute |
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 Official Development Assistance#
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Foreign Affairs (M34)
ADMINISTERING DEPARTMENT: Ministry of Foreign Affairs and Trade
MINISTER RESPONSIBLE FOR MINISTRY OF FOREIGN AFFAIRS AND TRADE: Minister of Foreign Affairs
Part 1 - Summary of the Vote#
Part 1.1 - Overview of the Vote
The Minister of Foreign Affairs is responsible for appropriations in the Vote for the 2009/10 financial year covering the following:
- A total of over $29 million for Management of the Official Development Assistance (ODA) Programme.
- A total of over $9 million for Strategic Advice and Evaluation.
- A total of over $94 million for contributions to international organisations.
- A total of almost $33 million for contributions to non-government organisations.
- A total of $102 million from the multi-year appropriation for Global Development Assistance.
- A total of almost $232 million from the multi-year appropriation for Pacific Development Assistance.
Details of these appropriations are set out in Parts 2-6 below.
Part 1.2 - High-Level Objectives of the Vote#
Government Priorities and Outcomes - Links to Appropriations#
Vote ODA provides the Government with an effective ODA programme centrally focused on poverty reduction through sustainable development, with a core focus on sustainable economic development and geographic focus on the Pacific.
Government Priorities | Government Outcomes | Appropriations |
---|---|---|
Enhance the operational effectiveness of official development assistance within the approved levels of aid expenditure | Sustainable development in partner countries | Management of ODA Programme |
Strategic Advice and Evaluation | ||
Global Development Assistance | ||
International Agency Funding | ||
Pacific Development Assistance | ||
New Zealand Voluntary Agency Grants | ||
New Zealand's security and economic interests safeguarded through its security and economic relationships | Global Development Assistance | |
International Agency Funding | ||
Pacific Development Assistance | ||
Economic growth and international competitiveness advanced through New Zealand's international connections | Global Development Assistance | |
International Agency Funding | ||
New Zealand Voluntary Agency Grants | ||
Pacific Development Assistance | ||
Transboundary solutions and effective international rules promoted | Management of ODA Programme | |
Strategic Advice and Evaluation | ||
International Agency Funding |
Part 1.3 - Trends in the Vote#
Summary of Financial Activity#
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 | 20,653 | 23,353 | 26,116 | 30,626 | 38,465 | 36,865 | 38,696 | - | 38,696 | 39,375 | 40,150 | 41,400 |
Benefits and Other Unrequited Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Other Expenses | 291,995 | 324,555 | 330,229 | 361,682 | 484,199 | 474,199 | - | 461,304 | 461,304 | 485,625 | 509,850 | 558,600 |
Capital Expenditure | - | - | - | - | - | - | - | - | - | - | - | - |
Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
Total Appropriations |
312,648 | 347,908 | 356,345 | 392,308 | 522,664 | 511,064 | 38,696 | 461,304 | 500,000 | 525,000 | 550,000 | 600,000 |
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#
Policy Initiative | Appropriation | 2008/09 Budgeted $000 |
2009/10 Budget $000 |
2010/11 Estimated $000 |
2011/12 Estimated $000 |
2012/13 Estimated $000 |
---|---|---|---|---|---|---|
Changes to New Zealand's ODA funding, arising from savings identified from the baseline review and the move to basing funding on outcomes rather than a percentage of GNI. |
Management of ODA Programme (M34) |
- | (4,834) | (5,021) | (4,328) | (3,391) |
Departmental Output Expenses | ||||||
Strategic Advice and Evaluation (M34) |
- | (1,679) | (1,674) | (1,443) | (1,130) | |
Departmental Output Expenses | ||||||
Global Development Assistance (M34) |
- | 1,596 | (4,465) | (2,465) | (465) | |
Other Expenses to be Incurred by the Crown | ||||||
International Agency Funding (M34) |
- | (4,918) | (16,418) | (14,418) | (14,418) | |
Other Expenses to be Incurred by the Crown | ||||||
New Zealand Voluntary Agency Grants (M34) |
- | (4,000) | (7,000) | (7,000) | (7,000) | |
Other Expenses to be Incurred by the Crown | ||||||
Pacific Development Assistance (M34) |
- | 10,726 | (53,363) | (33,138) | 13,612 | |
Other Expenses to be Incurred by the Crown | ||||||
Total Initiatives | - | (3,109) | (87,941) | (62,792) | (12,792) |
Analysis of Significant Trends#
Total Vote: All Appropriations
Significant changes in departmental and non-departmental appropriations in Vote ODA are discussed briefly below:
Total Vote expenses have increased from $312.648 million in 2004/05 to $500 million in 2009/10, an increase of $187.352 million. This increase arises from an increase of $169.309 million for ODA programmes and an additional $18.043 million for managing the increased programme.
Departmental Output Expenses
Output expenses have increased from $20.653 million in 2004/2005 to $38.696 million in 2009/2010. The rate of increase in departmental output expense is reducing, however, further work is to be undertaken to see what measures can be put in place to reduce departmental output expenses as a percentage of ODA expenditure.
Non-Departmental Other Expenses to be Incurred by the Crown
- Non-Departmental Other Expenses to be Incurred by the Crown
- Source: Ministry of Foreign Affairs and Trade
The appropriations for other expenses consist of two multi-year appropriations and two annual appropriations. While both appropriation types have increased over recent years, the multi-year appropriations received greater increases as New Zealand increased Vote ODA progressively to achieve previously agreed ODA:GNI targets. Future budget increases for Vote ODA will now be based on performance, and delivery of outcomes, rather than ODA:GNI targets. The apparent decrease in non-departmental other expenses in 2009/10 is due to a high level of expenditure in 2008/09 arising from under expenditure being carried forward from the first two years of both three-year multi-year appropriations.
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives
Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
---|---|
Objective Development partners have reduced poverty through sustainable development. To be measured by:
Intermediate Outcomes Development assistance programmes and activities that are relevant, effective, efficient, and deliver positive and sustainable impacts. End Outcome A more secure, equitable and prosperous world |
Management of ODA Programme Strategic Advice and Evaluation |
Management of Official Development Assistance Programme (M34)
Scope of Appropriation
Expenses and Revenue
2008/09 | 2009/10 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 28,961 | 27,756 | 29,119 |
Revenue from Crown | 28,780 | 28,780 | 29,064 |
Revenue from Other | 181 | 181 | 55 |
Reasons for Change in Appropriation
This appropriation is increasing in order to effectively manage and monitor the increasing size and number of development assistance programmes arising from the growth in ODA.
Output Performance Measures and Standards
2008/09 | 2009/10 | ||
---|---|---|---|
Performance Measures | Budgeted Standard |
Estimated Actual Standard |
Budget Standard |
Indicators of the Quantity of Output |
|||
Bilateral and constitutional relationships programmes managed. | 17 | 17 | 17 |
Pacific regional programmes and fund programmes managed. | 6 | 6 | 6 or decreasing through rationalisation |
Major Pacific regional Agencies relationships managed (PIFS, SOPAC, FFA, SPC, SPREP, USP, SPBEA, FSM). | 8 | 8 | 8 |
Non-Pacific regional programmes managed. | 7 | 7 | 7 or decreasing through rationalisation |
Multilateral relationships managed - top priority and second priority respectively under the Multilateral Engagement Strategy. | 10 & 15 | 10 & 15 | 10 & 15 |
Strategic relationships (with CID, VSA, DRC, Trade Aid ) and contestable funding schemes (KOHA-PICD, HAF) to manage partnerships with NZ NGOs. | 6 strategic relationships (4 of them significant) and 2 funding schemes | 4 & 2 | 4 & 2 |
Volume of Crown ODA resources administered. | As set out in Crown appropriations | Expectations met | As set out in Crown appropriations |
Indicators of the Quality of Output |
|||
At least one visit to all core bilateral partners, regional agencies, and five out of the ten top priority multilateral agencies. | Targets achieved | Targets achieved | Targets achieved |
All activities will comply with relevant approved programme strategies and criteria of NZAID. | 100% | 100% | 100% |
All Activities and programmes will be managed under contracts and agreements that comply with agreed and audited internal procurement standards and grant determination standards. | 100% | Audit for 2008/09 improved NZAID's rating from 'poor' to 'needs improvement' | Audit rating for financial and contract management of 'good' or higher |
Feedback from programme partners on NZAID engagement. | Expectations met and summary provided | Expectations met | Expectations met and summary provided |
Amount and proportion of sector-allocable ODA directed primarily to economic development. | N/A | $51.9m, 28% | Increasing |
Number of activities. | N/A | 882 | Decreasing |
Median annual activity expense. | N/A | $119,535 | Increasing |
Percentage delivered using high order aid modalities. | N/A | 14% and 54% | Increasing |
Progress towards the Paris Declaration 2010 targets for aid effectiveness. | N/A | Satisfactory progress | Further progress |
Conditions on Use of Appropriation
Reference | Conditions |
---|---|
Payment of grants and other donor assistance | In accordance with timely receipt of acquittal reports addressing reporting criteria and other obligations attached to funding. |
Procurement and contract services and information management | In accordance with Government policy, legislation, regulations and NZAID and MFAT financial policies and internal processes. |
Current and Past Policy Initiatives
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 |
---|---|---|---|---|---|---|
Changes to New Zealand's ODA funding, arising from savings identified from the baseline review and the move to basing funding on outcomes rather than a percentage of GNI. | 2009/10 | - | (4,834) | (5,021) | (4,328) | (3,391) |
Funding to enable New Zealand's response to the Indian Ocean Tsunami. | 2004/05 | 155 | - | - | - | - |
Increase to New Zealand's Official Development Programme. | 2004/05 | 12,629 | 17,479 | 18,162 | 18,162 | 18,162 |