Information supporting the estimates of appropriations

Finance and Government Administration Sector - Information Supporting the Estimates 2010/11 - Budget 2010

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

 

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

Using PDF Files

Cover, Contents#

Introduction#

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

Sector Overview#

  • Ministerial Statements of Responsibility
  • Speaker's Statement of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote Audit
  • Vote Communications Security and Intelligence
  • Vote Finance
  • Vote Ministerial Services
  • Vote Office of the Clerk
  • Vote Ombudsmen
  • Vote Parliamentary Service
  • Vote Prime Minister and Cabinet
  • Vote Revenue
  • Vote Security Intelligence
  • Vote State-Owned Enterprises
  • Vote State Services

Statements of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • Controller and Auditor-General
  • Office of the Clerk of the House of Representatives
  • Inland Revenue Department
  • Office of the Ombudsmen
  • Parliamentary Service
  • Department of the Prime Minister and Cabinet
  • State Services Commission
  • The Treasury

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

Votes and Departments in Each Sector#

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

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

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

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

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

Environment Sector - B.5A Vol.3

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

External Sector - B.5A Vol.4

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

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

Vote Prime Minister and Cabinet Department of the Prime Minister and Cabinet
Vote Communications Security and Intelligence Government Communications Security Bureau
Vote Security Intelligence New Zealand Security Intelligence Service
Vote State Services State Services Commission
Vote Finance The Treasury
Vote State-Owned Enterprises
Vote Revenue Inland Revenue Department
Vote Ministerial Services (this Vote is administered by the Department of Internal Affairs, which is in the Māori, Other Populations and Cultural Sector)  
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Ombudsmen Office of the Ombudsmen
Vote Parliamentary Service Parliamentary Service
Vote Audit Office of the Auditor-General

Health Sector - B.5A Vol.6

Vote Health Ministry of Health

Justice Sector - B.5A Vol.7

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

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

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

Primary Sector - B.5A Vol.9

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

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

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

Purpose and Nature of Appropriations#

An appropriation is a statutory authority from Parliament allowing the Crown or an Office of Parliament to incur expenses or capital expenditure.

Neither the Crown nor an Office of Parliament can legally incur any expense or capital expenditure - as those terms are defined in the Public Finance Act 1989 (PFA) - unless it is expressly authorised by or under an Act of Parliament.

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

Limits Created by Appropriations#

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

In most cases an appropriation also limits the amount of expenses or capital expenditure that can be incurred, and the time period within which those expenses or capital expenditure can be incurred.

Aside from the very limited exclusions provided for in the PFA, the amount of expense or capital expenditure authorised by an appropriation is measured in accordance with generally accepted accounting practice.

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

Responsibility for Appropriations#

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

A Vote is a group of appropriations (and can be a single appropriation) administered by a single department. Different appropriations within a Vote may be the responsibility of different Ministers.

 

Types of Appropriation#

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

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

Types of Appropriation
Appropriation Type Transaction Status Description

Output Expenses

Departmental

Authorises expenses to be incurred by a department or an Office of Parliament in supplying a specified category of outputs (goods and services).

Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) in purchasing a specified category of outputs (goods and services) from Crown entities or other third parties.

Benefits and Other Unrequited Expenses

Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) in transferring resources (generally to individuals for their personal benefit) for which the Crown receives nothing directly in return.

Examples include the Unemployment Benefit, student allowances and various scholarships and awards.

Borrowing Expenses

Departmental

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

In practice, limitations on the rights of departments to borrow or issue securities mean that these are likely to be incurred only by Offices of Parliament.

Non-Departmental

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

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

Other Expenses

Departmental

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

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

Non-Departmental

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

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

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

Capital expenditure

Departmental

Authorises capital expenditure to be incurred by a department or an Office of Parliament to acquire or develop assets for the use of the department.

Non-Departmental

Authorises capital expenditure to be incurred by the Crown (excluding departments) to acquire or develop Crown assets, including the purchase of equity, or making a loan to a person or organisation that is not a department.

Expenses or Capital expenditure Incurred by an Intelligence and Security Department

Departmental

Authorises both expenses and capital expenditure to be incurred by the New Zealand Security Intelligence Service or the Government Communications Security Bureau.

Types of Output Expense Appropriations#

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

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

Standard Output Expense Appropriations

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

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

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

Single output class only: The scope is limited to a single class of outputs (defined as a grouping of similar outputs).

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

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

Multi-Class Output Expense Appropriations (MCOA)

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

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

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

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

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

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

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

Revenue-Dependent Appropriations (RDA)

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

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

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

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

Single output class only: The scope of an RDA is limited to a single class of outputs (defined as a grouping of similar outputs).

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

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

Department-to-Department Appropriation (DDA)

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

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

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

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

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

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

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

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

Appropriation Period#

The length of the appropriation period affects how appropriations are presented in the Estimates and Supplementary Estimates. Three kinds of appropriation can be distinguished on the basis of period - annual and multi-year (as referred to in the above table on types of output expense appropriations), and permanent:

  • Annual Appropriations - Most appropriations listed in the Estimates and Supplementary Estimates allow expenses or capital expenditure to be incurred only during a particular financial year. The annual amounts, for which parliamentary authority is being sought, are shown in bold type in Details of Annual and Permanent Appropriations in the Estimates and Supplementary Estimates for each Vote. The amounts for RDAs and annual DDAs are forecasts only, and so are not shown in bold type.
  • Multi-Year Appropriations (MYAs) - The PFA also permits appropriations that allow expenses or capital expenditure to be incurred during a specified period that spans the whole or parts of more than one financial year, but no more than five financial years. The details of each MYA, including its commencement date and expiry date, are specified in Details of Multi-Year Appropriations in the Estimates and Supplementary Estimates for relevant Votes.
  • Permanent Appropriations (sometimes referred to as permanent legislative authorities or PLAs) -Permanent appropriations are authorised by legislation other than an Appropriation Act and continue in effect until revoked by Parliament. Generally the authorising legislation will impose limits on the scope of the appropriation and not its amount. For those appropriations that with limits set in cash terms, section 11(2) of the Public Finance Act 1989 requires that they be reported on an accrual basis. The usual legislative wording allows for expenses or capital expenditure to be incurred for the purpose specified in the legislation “without further appropriation than this section”. Details of permanent appropriations are included in Details of Annual and Permanent Appropriations in the Estimates and Supplementary Estimates for each Vote for completeness, though the amount specified is a forecast rather than a limit. The amounts of permanent appropriations are therefore not shown in bold type. The scope of a permanent appropriation will reference the relevant section of the authorising legislation.

Guide to Reading Information Supporting theEstimates#

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

1 Sector Overview Information

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

2 Performance Information Relating to Appropriations in Each Vote#

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

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

Part 1 - Summary of the Vote

The Summary of the Vote comprises:

  • Part 1.1 Overview of the Vote - A plain-language summary of the focus of the appropriations through a brief explanation of the Vote. The Overview also appears at the start of the Vote in the Estimates.
  • Part 1.2 High-Level Objectives of the Vote - The objectives for the Vote presented through links and relationships and high-level priorities and outcomes to which they contribute. Where applicable, priorities and outcomes are drawn from the priorities and desired outcomes and published strategy documents. Links are also made to specific government strategies. Links may also be made to specific Government objectives.
  • Part 1.3 Trends in the Vote - A presentation of the actual and estimated trends in the Vote, comprising:
    • Summary of Financial Activity - A table showing financial information over the preceding five years (actual, budgeted or estimated actual), the current year (Budget) and the following three years (estimated) for the type of appropriations and Crown revenue and capital receipts.
    • New Policy Initiatives - A table showing how new initiatives (and the associated expenses or capital expenditure) are allocated to appropriations in the Vote. References are included where appropriations in other Votes are affected by the same initiative.
    • Analysis of Significant Trends - High-level analysis of appropriations and Crown revenue and capital receipts by type over the nine financial years covered by the Summary of Financial Activity table, explanations of significant changes and may also contain graphical presentations.
  • Part 1.4 Reconciliation of Changes in Appropriation Structure - a table providing a reconciliation and explanation of any changes in the structure or classification of appropriations made in the Budget year. These changes are restated for the previous financial year to facilitate comparison.

Part 2 - Details and Expected Performance for Output Expenses#

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

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

Part 3 - Details for Benefits and Other Unrequited Expenses#

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

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

Part 4 - Details for Borrowing Expenses#

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

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

Part 5 - Details and Expected Results for Other Expenses#

Part 5 provides detail about appropriations for:

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

Part 6 - Details and Expectations of Capital Expenditure#

This Part provides further details about appropriations for capital expenditure.

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

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

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

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

3 Statement of Forecast Service Performance of Departments#

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

4 Forecast Financial Statements of Departments#

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

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

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

5 Statements of Intent of Departments#

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

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

Terms and Definitions#

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

Terms and Definitions
Appropriation An appropriation is a parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
Appropriation scope One of the defining terms of an appropriation that establishes limits on the activities for which the Crown or an Office of Parliament is authorised to incur expenses or capital expenditure under that appropriation.
Capital expenditure The cost of assets acquired or developed including any ownership interest in entities, but excluding inventory.
Crown revenue Revenue earned on behalf of the Crown. These flows are accounted for as revenue to the Crown rather than as departmental revenue.
DDA Department-to-department appropriations, which are authorised by section 20(2) of the Public Finance Act 1989.
Department Generally references to Departments also include an Office of Parliament as provided in section 26E(4) of the Public Finance Act 1989.
Expenses Amounts consumed or losses of service potential or future economic benefits, other than those relating to capital withdrawals, in a financial year. [An accrual concept measured in accordance with generally accepted accounting practice.]
GST Goods and services tax. Appropriations are stated GST exclusive.
MCOA Multi-class output expense appropriation.
MYA Multi-year appropriation.
N/A Not applicable.
Outcomes States or conditions of society, the economy or the environment, including changes in those states or conditions.
Outputs Goods or services supplied by departments and other entities to external parties. Outputs are a variety of types, including policy advice, administration of contracts and grants, and the provision of specific services.
PFA Public Finance Act 1989.
PLA Permanent Legislative Authority - the traditional term for an appropriation authorised for an indefinite period by legislation other than an Appropriation Act (also known as a permanent appropriation).
Minister The Minister responsible for specific appropriations being sought within a Vote. As several Ministers may now hold appropriations within a single Vote, each appropriation will have a tag (M1, M2 etc) identifying the Minister responsible for that line item.
RDA Revenue-dependent appropriations, which are authorised by section 21(1) of the PFA 1989.
Responsible Minister The Minister responsible for the financial performance of a department or Crown entity. In relation to an Office of Parliament, the Office of the Clerk of the House of Representatives, and the Parliamentary Service, the Speaker is the Responsible Minister.
Revenue from the Crown Revenue earned by a department from the Crown for the provision of outputs to or on behalf of the Crown. These flows are accounted for as departmental revenue. Revenue from the Crown is eliminated for purposes of reporting the Crown's overall financial performance and position.
Revenue from Others Revenue earned by a department from other departments and from third parties. Revenue from other departments is eliminated for purposes of reporting the Crown's overall financial performance and position.
Vote A grouping of one or more appropriations that are the responsibility of one or more Ministers of the Crown and are administered by one department.

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

Ministerial Statements of Responsibility#

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

Hon John Key
Responsible Minister for the Department of the Prime Minister and Cabinet

19 April 2010

Hon Bill English
Responsible Minister for the Treasury

27 April 2010

Hon Tony Ryall
Responsible Minister for the State Services Commission

19 April 2010

Hon Peter Dunne
Responsible Minister for the Inland Revenue Department

27 April 2010

Speaker's Statement of Responsibility#

I am satisfied that the information on future operating intentions provided by the Office of the Clerk of the House of Representatives, and Parliamentary Service and included in the Information Supporting the Estimates for the Finance and Government Administration Sector is in accordance with sections 38 and 41 of the Public Finance Act 1989 and is consistent with my requirements and performance expectations as Responsible Minister for the Office and the Service.

Hon Dr Lockwood Smith
Speaker of the House of Representatives
Responsible Minister for the Office of the Clerk of the House of Representatives
Responsible Minister for the Parliamentary Service

19 April 2010

Chief Executive Statements of Responsibility#

Department of the Prime Minister and Cabinet

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Department of the Prime Minister and Cabinet and for the Vote for which the Department of the Prime Minister and Cabinet is the administering department. Specifically, this information is contained in the Department of the Prime Minister and Cabinet's statement of forecast service performance, forecast financial statements and statement of intent.

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

Maarten Wevers
Chief Executive
Department of the Prime Minister and Cabinet

16 April 2010

Brent Anderson
Corporate Services manager
Department of the Prime Minister and Cabinet

16 April 2010

The Treasury

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

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

John Whitehead
Secretary to the Treasury
The Treasury

27 April 2010

Fergus Welsh
Chief Financial Officer / Chief Accountant
The Treasury

27 April 2010

State Services Commission

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

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

Iain Rennie
State Services Commissioner
State Services Commission

16 April 2010

Mandy Simpson
Chief Financial Officer
State Services Commission

16 April 2010

Inland Revenue Department

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

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

Robert Russell
Commissioner of Inland Revenue
Inland Revenue Department

27 April 2010

Scott Scoullar
Chief Financial Officer
Inland Revenue Department

27 April 2010

Chief Executive Statements of Responsibility (continued)#

Office of the Clerk of the House of Representatives

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

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

Mary Harris
Clerk of the House of Representatives
Office of the Clerk of the House of Representatives

16 April 2010

Peter Carr
Clerk-Assistant (Corporate Services)
Office of the Clerk of the House of Representatives

16 April 2010

Parliamentary Service

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Parliamentary Service and for the Vote for which the Parliamentary Service is the administering department. Specifically, this information is contained in the Parliamentary 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 (2010/11 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Geoff Thorn
General Manager
Parliamentary Service

16 April 2010

Priya Baskaran
Financial Controller
Parliamentary Service

16 April 2010

Chief Executive Statements of Responsibility (continued)#

Controller and Auditor-General

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Finance and Government Administration Sector relating to the Controller and Auditor-General and for the Vote for which the Controller and Auditor-General is the administering department. Specifically, this information is contained in the Controller and Auditor-General's statement of forecast service performance, forecast financial statements and statement of intent.

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

Lyn Provost
Controller and Auditor-General

16 April 2010

Maria Viviers
Financial Controller
Controller and Auditor-General

16 April 2010

Office of the Ombudsmen

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

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

Beverley A Wakem
Chief Ombudsman
Office of the Ombudsmen

16 April 2010

Peter J Brocklehurst
General Manager - Corporate
Office of the Ombudsmen

16 April 2010

Performance Information for Appropriations Vote Audit#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Speaker of the House of Representatives (M78)

ADMINISTERING DEPARTMENT: Controller and Auditor-General

MINISTER RESPONSIBLE FOR CONTROLLER AND AUDITOR-GENERAL: Speaker of the House of Representatives

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

  • a total of $9.047 million for the Controller and Auditor-General supporting Parliament in its role of ensuring accountability for public resources, including advice to Select Committees and other bodies, undertaking the Controller function, plus undertaking and reporting on performance audits and inquiries relating to public entities
  • a total of $61.855 million for providing audit services to public entities, and other audit-related assurance services.

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

Part 1.2 - High-Level Objectives of the Vote#

Public entities are accountable to Parliament for their use of the public resources and powers that Parliament has conferred on them. Parliament has also legislated to require independent assurance that public entities are operating, and accounting for their performance, in accordance with Parliament's intentions.

The Public Audit Act 2001 provides for the Controller and Auditor-General (the Auditor-General) to examine and provide independent assurance to Parliament and the public on matters of authority, waste, probity, performance, and accountability and sets out her mandate and responsibilities.

The audit work carried out by the Auditor-General and the resulting assurance helps public entities to make improvements in their use of the resources and powers entrusted to them and in their accounting to Parliament and the public for their use of these.

The Auditor-General is an Officer of Parliament and is independent of executive Government and Parliament in discharging the functions of the statutory office, but is answerable to Parliament for her stewardship of the public resources entrusted to her. While the Speaker is the Vote Minister for the purposes of appropriations, the Speaker's role in relation to Offices of Parliament is not the same as that of Ministers of the Crown in relation to their departments.

The Speaker cannot contract with or direct the Auditor-General as to how she should discharge her statutory duties. Thus, the explanation of the appropriations for Vote Audit reflects the Auditor-General's perspective of the outputs that will be delivered to Parliament from Vote Audit. The appropriations in this Vote were commended to the Governor-General by the House of Representatives in an address on the recommendation of the Officers of Parliament Committee.

Objectives of the Vote

Objectives of the Vote - Audit
Outcome Objective and Output Classes
Building trust in the public sector.
Our outcome measure is that New Zealand's Transparency International Corruption Perception Index score over the next three years is maintained or improved. In 2009, New Zealand's score was 9.4 on a 10-point scale, meaning it ranked first on the index. New Zealand has always achieved a high place on the index since it started in 1995.
Independent advice and assurance through our output classes:
  • audit and assurance services
  • supporting accountability to Parliament, and
  • performance audits and inquiries.

Summary of Financial Activity

Summary of Financial Activity - Audit
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 51,700 67,345 67,162 69,218 72,134 72,134 70,902 - 70,902 81,411 76,736 79,847
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - 699 716 662 662 751 - 751 751 751 751
Capital Expenditure 1,510 1,222 779 1,511 1,197 1,197 1,552 - 1,552 905 1,000 1,116
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

53,210 68,567 68,640 71,445 73,993 73,993 73,205 - 73,205 83,067 78,487 81,714

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 - - - - -

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Appropriation: Annual Audit and Assurance Services

The main purpose of an annual audit is to provide independent assurance about the fair presentation of the financial - and in many instances non-financial - information within annual reports. An audit involves a range of procedures, tests, and management and governance enquiries to support the Auditor-General's opinion.

In carrying out annual audits, auditors consider the legislative audit mandate, and recommendations for improvements in matters of authority, probity, performance, waste, and accountability may also be raised in our management letters to the governors and managers of public entities. Through annual audits, information and knowledge is gathered about public entities to assist the Auditor-General in advising Parliament and other stakeholders and in determining the performance audits and inquiries work that is carried out.

A foundation for trust in the public sector is that public entities respond to their statutory public reporting obligations and to findings resulting from audits. Public entities responses demonstrate their commitment to effective, efficient, and accountable service delivery. Therefore, the measures of intended impacts of the appropriation are that:

Impact Performance Measures - Audit
2010-13 Main Impact Measures and Standards 2008/09 Actual (see Note 1) 2007/08 Actual
The number of public entities' audited annual reports issued within the statutory timeframe is improved (or at least maintained), measured against the previous two years. Total audits due for completion in year: 3908. Percentage on time: 81% Total audits due for completion in year: 3946. Percentage on time: 78%
The number of public entities' audited annual reports containing modified opinions is reduced (or at least maintained), measured against the previous two years. Total qualified opinions: 95 or 2.4% Total qualified opinions: 91 or 2.3%
Public entities' acceptance of audit service providers' management report recommendations is improved (or at least maintained), measured against the previous two years. (Note: In prior years this has only been assessed against Audit New Zealand's management report recommendations.) Accepted: 79%
Rejected: 11%
Noted, under consideration, or not responded to: 10%
Accepted: 72%
Rejected: 4%
Noted, under consideration, or not responded to: 24%
Central government entities' management control environment, financial information, and service performance information systems and controls are improved (or at least maintained), measured against the previous two years. (See Note 2) Management Control Environment:
  • Very good: 46%
  • Good: 44%
  • Needs improvement: 10%
  • Poor: 0%
Financial systems and controls:
  • Very good: 32%
  • Good: 58%
  • Needs improvement: 10%
  • Poor: 0%
Management Control Environment:
  • Very good: 38%
  • Good: 51%
  • Needs improvement: 11%
  • Poor: 0%
Financial systems and controls:
  • Very good: 21%
  • Good: 68%
  • Needs improvement: 11%
  • Poor: 0%

Note 1 - For comparative purposes, we have provided actual achievements against measures and standards for 2008/09 and 2007/08 as information is not yet available, in most instances, for 2009/10.

Note 2 - Service performance information and associated systems and controls was graded for the first time under our new framework as part of the 2008/09 audits or with audit work carried out in 2009/10.

Appropriation: Supporting Accountability to Parliament

Through annual audit, performance audit, and inquiry work, the Auditor-General has a broad overview of public entities both individually and throughout sectors. The Auditor-General supports Parliament in holding the executive to account for its use of public resources through:

  • Parliamentary services - reporting to Parliament and others as appropriate on matters arising from annual and appropriation audits, reporting to and advising select committees, and advising other agencies on the requirements of Parliamentary and related accountability systems.
  • The Controller function of the Auditor-General - providing independent assurance to Parliament that expenses and capital expenditure of departments and Offices of Parliament have been incurred for purposes that are lawful and within the scope, amount, and period of the appropriation or other authority. Through this output, the Auditor-General provides for the accountability of departments and Offices of Parliament for the use of funds appropriated to them within the authority granted by Parliament.

Effectiveness, efficiency, and accountability are foundations of trust in the public sector. Therefore, the intended impacts of the appropriation are that:

Impact Performance Measures - Audit
2010-13 Main Impact Measures and Standards 2008/09 Actual (see Note 1) 2007/08 Actual
Select committees confirm that the Office's advice assists them in Estimates of Appropriation and financial review examinations. 100% of respondents rated us as 4 or better on a scale of 1 to 5 as assessed through our stakeholder survey. 100% of respondents rated us 4 or better on a scale of 1 to 5 as assessed through our stakeholder survey.
Expenses and capital expenditure of departments and Offices of Parliament are incurred for purposes that are lawful and within the scope, amount, and period of the appropriation or other authority. The operation of the monthly Controller process and the appropriation audit were carried out to ensure that this measure was achieved. The operation of the monthly Controller process and the appropriation audit were carried out to ensure that this measure was achieved.

Appropriation: Performance Audits and Inquiries and Responsibilities under the Local Authorities (Members' Interests) Act 1968

The Public Audit Act 2001 provides the Auditor-General discretion to undertake performance audits and inquiries to examine matters concerning a public entity's use of resources, including:

  • the extent to which activities are carried out effectively and efficiently
  • compliance with statutory obligations
  • any acts or omissions to determine whether waste has resulted or may result, and
  • any act or omission showing or appearing to show a lack of probity or financial prudence by a public entity or its members, office holders, or employees.

The Auditor-General must also respond to requests for approvals in relation to pecuniary interest questions regulated by the Local Authorities (Members' Interests) Act 1968.

Performance audits, inquiries, and good practice guides allow the Auditor-General to consider and provide advice about issues of accountability, performance, waste, probity, and authority in greater depth than is appropriate within the statutory scope of an annual audit.

Effectively and efficiently performing public entities, that are accountable and operating within their authority and according to high ethical standards, are foundations for trust in the public sector. Therefore, the intended impacts of the appropriation are that:

Impact Performance Measures - Audit
2010-13 Main Impact Measures and Standards 2008/09 Actual (see Note 1) 2007/08 Actual
Entities accept or respond to the recommendations made in our performance audits, as assessed by internal review of performance audits published in the previous year. The results are presented to the Officers of Parliament Committee in our annual follow-up report. Three performance audit reports were selected by our Audit and Risk Committee for review and the results were presented to the Officers of Parliament Committee. The review concluded that our recommendations had been accepted by the relevant entities and either had been implemented or were being implemented. Three performance audit reports were selected for review by our Audit and Risk Committee and the results were presented to the Officers of Parliament Committee. The review concluded that our recommendations had been accepted by the relevant public entities and either had been implemented or were being implemented.
Entities take action in response to concerns identified in inquiry reports, as assessed by follow-up on a sample of sensitive and major inquiries undertaken in the previous year. We followed up on four of the 11 inquiries within these categories from the previous year that contained recommendations or suggestions for action. In all cases, we were satisfied with the action taken. We have followed up the one sensitive inquiry that was carried out in 2006/07 (there were no major inquiries). The entity has taken positive steps to address the comments we made.

Audit and Assurance Services RDA (M78)

Scope of Appropriation

This appropriation is limited to the performance of audit and related assurance services as required or authorised by statute. The Auditor-General is required to audit the financial statements of the Government, public entities' financial statements and other information that must be audited. The Auditor-General is also enabled to perform other services reasonable and appropriate for an auditor to perform and to audit other quasi-public entities.

Expenses and Revenue

Expenses and Revenue - Audit and Assurance Services RDA (M78) - Audit
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 62,937 62,937 61,705
Revenue from Crown - - -
Revenue from Other 62,937 62,937 61,705

Reasons for Change in Appropriation

Forecasts for the 2010/11 financial year are for audit fees of $1.232 million less than 2009/10. This is the net effect of forecast fee increases and updated forecasts of percentage completion of audits across financial years.

Output Performance Measures and Standards

Output performance measures and standards - Audit
  2008/09 2009/10 2010/11
Performance Measures Actual Budgeted Standard Budget Standard
Outstanding audit reports at 30 June 2010 are not due to inaction on our part. Total arrears at 30 June: 429 Less than 10% due to inaction on the Office's part. Less than 30% due to inaction on the Office's part.
  49% due to inaction on the Office's part.    
Management reports are issued on a timely basis. 93% issued within six weeks of issuing the audit report. Within six weeks of issuing the audit report. Within six weeks of issuing the audit report.
Outstanding LTCCP audit opinions at 30 June 2009 are not due to inaction on our part and LTCCP management reports are issued on a timely basis. 8% of LTCCP opinions were outstanding at 30 June 2009, one of which remained outstanding at 31 August 2009. No outstanding opinions were due to inaction on our part. N/A as LTCCP audits occur every third year. N/A as LTCCP audits occur every third year.
  85% of management reports were issued within six weeks of issuing the LTCCP opinion.    
Client satisfaction survey results show that respondents are satisfied with the quality of audit work (including the expertise of staff and the quality of the entities' relationships with their audit service provider). On a scale of 1 to 10, 80% of respondents gave overall service ratings of 7 or greater. 75% satisfaction rate overall. 75% satisfaction rate overall.
Quality assurance reviews for all appointed auditors are completed during a three-year period. All completed. 100% achieved satisfactory or better. 95% of auditors reviewed in the year achieve a result of "satisfactory" or better. 95% of auditors reviewed in the year achieve a result of "satisfactory" or better.
The methods and systems used to allocate and tender audits, and monitor the reasonableness of audit fees are objective and provide properly for probity. Review undertaken and confirmation provided. Confirmed by an annual independent review of our processes. Confirmed by an annual independent review of our processes.
The Officers of Parliament Committee accepts any significant proposals for an appropriation increase in audit fees and expenses. No significant proposal made for an appropriation increase in audit fees and expenses. However, a request for an increase in appropriation of $50,000 for audits of smaller entities (Cemetery Trusts and Reserve Boards) was not accepted by the Officers of Parliament Committee. The Officers of Parliament Committee accepts any significant proposals for an appropriation increase in audit fees and expenses. The Officers of Parliament Committee accepts any significant proposals for an appropriation increase in audit fees and expenses

Audit and Assurance Services (M78)#

Scope of Appropriation

This appropriation is limited to the performance of audit and related assurance services as required or authorised by statute for smaller entities such as cemetery trusts and reserve boards.

Expenses and Revenue

Expenses and Revenue - Audit and Assurance Services (M78) - Audit
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 150 150 150
Revenue from Crown 150 150 150
Revenue from Other - - -

Output Performance Measures and Standards

Refer to the output performance measures and standards which apply to the main audit and assurance services output class.

Statutory Auditor Function MCOA (M78)#

Scope of Appropriation

Performance Audits and Inquiries
This output class is limited to undertaking and reporting on performance audits and inquiries relating to public entities under the Public Audit Act 2001 and responding to requests for approvals in relation to pecuniary interest questions regulated by the Local Authorities Members' Interests Act 1968.
Supporting Accountability to Parliament
This output class is limited to reporting to Parliament and others as appropriate on matters arising from annual and appropriation audits, reporting to and advising select committees, and advising other agencies on the requirements of parliamentary and related accountability systems, to support Parliament in its holding the executive to account for its use of public resources.

Explanation for Use of Multi-Class Output Expense Appropriation

The basis for this multiclass output appropriation is the two output classes use the same resources and contribute to the same outcome.

Expenses and Revenue

Expenses and Revenue - Statutory Auditor Function MCOA (M78) - Audit
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

9,047 9,047 9,047
Performance Audits and Inquiries 6,587 6,587 6,587
Supporting Accountability to Parliament 2,460 2,460 2,460

Revenue from Crown

9,047 9,047 9,047
Performance Audits and Inquiries 6,587 6,587 6,587
Supporting Accountability to Parliament 2,460 2,460 2,460

Revenue from Other

- - -
Performance Audits and Inquiries - - -
Supporting Accountability to Parliament - - -

Output Performance Measures and Standards

Output Performance Measures and Standards - Audit
  2008/09 2009/10 2010/11
Performance Measures
Actual
Budgeted Standard Budget Standard
Supporting Accountability to Parliament - Parliamentary Services
Reports and advice are given to select committees and Ministers. 100% reports and advice given at least 2 days before an examination. At least 2 days before an examination, unless otherwise agreed. At least 2 days before an examination, unless otherwise agreed.
Estimates, financial review, and Ministerial reports meet the relevant standards and procedures, including that reports are consistent in their framework and approach and are peer reviewed in draft (see Note 3). No internal review this year. Confirmed by internal review of a sample of financial review, Estimates, and Ministerial reports. Confirmed by internal review of a sample of financial review, Estimates, and Ministerial reports.
Select committee members we survey rate the quality and usefulness of the advice they receive from us as 4 or better on a scale of 1 to 5. 86% rate advice received as 4 out of 5 At least 85% At least 85%
Stakeholders we survey rate the relevance and usefulness of the advice they receive from us as 4 or better on a scale of 1 to 5. 100% rate advice received as 4 out of 5. At least 85% At least 85%
Supporting Accountability to Parliament - Controller Function
Monthly statements provided by the Treasury are reviewed for the period September to June (inclusive). Where there is a breach or suspected breach, actions are taken in accordance with the Auditor-General's powers and auditing standards, and the Memorandum of Understanding with the Treasury. Procedures followed and agreed time frames achieved. Advice of issues arising and action to be taken is provided to the Treasury and appointed auditors within five working days of receipt of the statement. Advice of issues arising and action to be taken is provided to the Treasury and appointed auditors within five working days of receipt of the statement.
Office policies, procedures, and standards in relation to the Controller Function have been applied appropriately (see Note 3). Internal quality assurance review carried out in May 2009 confirmed compliance. Confirmed by internal quality assurance review. Confirmed by internal quality assurance review.
Performance Audits and Inquiries - Performance Audits
Completion of reports on matters arising from performance audits and special studies, and inquiries. 19 completed 19-21 19-21
Select committees and other stakeholders are satisfied with the proposed work programme of performance audits and special studies. Feedback supported the approach we had taken. As indicated by feedback on our draft work programme. As indicated by feedback on our draft work programme.
Stakeholders we survey rate the quality and usefulness of performance audit reports (relevant to their sector or interest)
as 4 or better on a scale of 1 to 5.
100% for quality and 67% for usefulness At least 85% At least 85%
Our performance audit methodology reflects good practice for carrying out such audits. Assessed by the National Audit Office of Australia through a review of two of our performance audits confirmed areas in which the quality of our reports is strong and areas for us to improve. Assessed every second year by the National Audit Office of Australia through a review of two of our performance audits. A review is scheduled for this year. Assessed every second year by the National Audit Office of Australia through a review of two of our performance audits. The next review is scheduled for 2010/11
Performance audit reports meet quality expectations in terms of the sufficiency of administrative and management context, the report structure, presentation, and format (including use of graphics and statistics), the rigour of the methodology used, the balance, reasonableness of the methodology used, and the resulting conclusions and recommendations. Independent internal quality assurance reviews on two selected performance audit reports confirmed areas in which the quality of our reports is strong and areas for us to improve. Confirmed by independent internal quality assurance reviews on two selected performance audit reports. Confirmed by independent internal quality assurance reviews on two selected performance audit reports.
Appropriate systems and controls are in place and reports are prepared in keeping with the performance audit methodology (see Note 3). No internal review this year. Confirmed by internal review of a selection of performance audit reports Confirmed by internal review of a selection of performance audit reports
Performance Audits and Inquiries - Inquiries
Our findings on inquiries are reported to the relevant parties on a timely basis. 84% of "routine" inquiries within 3 months, 73% of "sensitive" inquiries within 6 months, and 0% of "major" inquiries within 12 months. Within 3 months for 80% of "routine" inquiries, within 6 months for 80% of "sensitive" inquiries, and within 12 months for 80% of "major" inquiries. Within 3 months for 80% of "routine" inquiries, within 6 months for 80% of "sensitive" inquiries, and within 12 months for 80% of "major" inquiries.
Inquiries under the Local Authorities (Members' Interests) Act 1968 are completed within 30 working days. 87% completed within 30 working days. 80% 80%
Responses to requests for inquiries and our administering of the Local Authorities (Members' Interests) Act 1968 requests are undertaken in accordance with relevant policies, procedures, and standards (see Note 3). No internal quality assurance review undertaken. Confirmed by internal quality assurance review. Confirmed by internal quality assurance review.

Note 3 - The nature, extent, and frequency of the quality assurance review is determined based on risk. The review is carried out during a three-year period.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.1 - Departmental Other Expenses

Remuneration of Auditor-General and Deputy Auditor-General PLA (M78)

Scope of Appropriation

This appropriation is limited to remuneration expenses for both the Auditor-General and the Deputy Auditor-General as authorised by clause 5 of the Third Schedule of the Public Audit Act 2001.

Expenses

Expenses - Remuneration of AuditorGeneral and Deputy AuditorGeneral PLA (M78) - Audit
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 662 662 751

Reasons for Change in Appropriation

This appropriation was lower in 2009/10 due to the position of Auditor-General being vacant for part of the year.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

Controller and Auditor-General - Capital Expenditure PLA (M78)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Controller and AuditorGeneral Capital Expenditure PLA (M78) - Audit
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 435 435 693
Intangibles 298 298 350
Other 464 464 509

Total Appropriation

1,197 1,197 1,552
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 435 435 693
Intangibles 298 298 350
Other 464 464 509

Total Appropriation

1,197 1,197 1,552

Reasons for Change in Appropriation

Planned expenditure for 2010/11 includes additional expenditure on equipment and software, a reflection of the increased capital funding to maintain adequate equipment and technology.

Performance Information for Appropriations Vote Communications Security and Intelligence#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister Responsible for the Government Communications Security Bureau (M60)

ADMINISTERING DEPARTMENT: Government Communications Security Bureau

MINISTER RESPONSIBLE FOR GOVERNMENT COMMUNICATIONS SECURITY BUREAU: Prime Minister

Part 1 - Summary of the Vote

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Summary of Financial Activity - Communications Security and Intelligence
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses - - - - - - - - - - - -
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure 37,977 42,099 40,694 43,261 59,142 59,142 70,440 N/A 70,440 54,485 53,991 53,991

Total Appropriations

37,977 42,099 40,694 43,261 59,142 59,142 70,440 - 70,440 54,485 53,991 53,991

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 - - - - -

 

Performance Information for Appropriations Vote Finance#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Finance (M31), Minister for Infrastructure (M80), Minister for Regulatory Reform (M81)

ADMINISTERING DEPARTMENT: The Treasury

MINISTER RESPONSIBLE FOR THE TREASURY: Minister of Finance

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Finance is responsible for appropriations in Vote Finance for the 2010/11 financial year which covers the following:

  • Nearly $29 million for policy advice on lifting New Zealand's overall economic performance and state sector performance.
  • Nearly $15 million for macroeconomic policy and management which includes advice on fiscal policy and strategy; fiscal management, macroeconomic, tax and fiscal forecasting and fiscal reporting.
  • Over $3,066 million for the payment of interest and other costs relating to the Crown's debt.
  • Over $778 million for superannuation costs.
  • $71 million for a capital payment to the Asian Development Bank.
  • Over $17 million for capital investment in Landcorp Farming Limited.
  • Over $17 million for New Zealand House, London costs.
  • Over $2 million for the establishment of the New Zealand Productivity Commission.
  • Nearly $12 million for the Crowns guarantees and indemnities.
  • Nearly $2 million for Taitokerau Forests Limited.
  • Over $1 million for Treasury capital expenditure.
  • Over $3 million for unclaimed money and various Crown liabilities.

The Minister of Finance is also responsible for Crown revenue and receipts in the Vote for the 2010/11 financial year, which covers the following:

  • A forecast of over $3,219 million in non-tax revenue.
  • A forecast of $746,000 in capital receipts.

The Minister for Infrastructure is responsible for one appropriation in Vote Finance for the 2010/11 financial year which covers the following:

  • Almost $5 million for policy advice and co-ordination of the Government's infrastructure activities.

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

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Finance
Government Priorities Government Outcomes Appropriations
Improving and enduring economic growth by increasing New Zealand's productivity growth, maintaining high levels of employment and reducing New Zealand's vulnerability to adverse events. Lifting the longer term economic performance of New Zealand. Policy Advice: Economic Performance
Administration of Crown Borrowing
Administration of Derivative Transactions
Administration of Investment of Public Money
Administration of Guarantee and Indemnities given by the Crown
Crown Guarantee Scheme
Economic and Tax Forecasting
Fiscal Management
Fiscal Reporting
Management of Crown Lending and Crown Bank Accounts
Policy Advice: Fiscal and Macroeconomic
  Lifting the performance of the New Zealand economy by supporting business innovation and trade. New Zealand Export Credit Office
  Improving the quality of regulation by progressing the Productivity Commission and Regulatory Responsibility Bill as well as a wide ranging programme of regulatory reform. 2025 Productivity Taskforce
Establishment of New Zealand Productivity Commission
Enquiries, Reviews and Research Into Productivity Related Matters
New Zealand Productivity Commission Capital Costs
  Lifting Public Sector performance on infrastructure by building on the first draft of the National Infrastructure Plan and progressing opportunities for greater private sector involvement in infrastructure development. Infrastructure Advice and Coordination
  Continue to develop innovative ways of driving better value for money and higher quality services, for a better performing State Sector while ensuring that government expenditure grows at a slower rate than in previous years. Policy Advice - State Sector Performance
  To meet Crown liabilities and manage Crown assets efficiently. Asian Development Bank
Crown Residual Liabilities
Debt Servicing
Geothermal Wells Fund
Government Superannuation Appeals Board
Government Superannuation Fund Authority - Crown's Share of Expenses
Government Superannuation Fund Unfunded Liability
GST Compensation for Government Superannuation Fund and National Provident Fund recipients
Impairment of Loans to Taitokerau Forest Limited
International Financial Institutions
Landcorp Protected Land Agreement
Management of Liabilities, Claims Against the Crown and Crown Properties
Management of the Crown's Obligations for Geothermal Wells
Management of New Zealand House, London
Management of New Zealand Superannuation Fund
National Provident Fund Schemes - Liability Under Crown Guarantee
New Zealand House, London
Taitokerau Forests Limited Grant
Taitokerau Forests Loans
Unclaimed Money
Unclaimed Trust Money

Summary of Financial Activity

Summary of Financial Activity - Finance
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 54,554 56,333 55,315 126,210 73,358 68,709 70,441 2,403 72,844 70,076 67,749 66,791
Benefits and Other Unrequited Expenses 1,091,367 975,542 - - - - N/A - - - - -
Borrowing Expenses 2,674,921 2,429,986 2,049,665 2,087,220 2,288,836 2,288,836 - 3,058,421 3,058,421 3,545,803 3,990,317 4,154,720
Other Expenses 341,937 389,004 1,367,116 2,659,771 2,162,897 2,162,897 - 796,357 796,357 880,797 979,936 995,273
Capital Expenditure 2,503,205 2,157,675 2,295,419 4,468,886 572,891 572,891 1,375 89,647 91,022 2,377 2,557 2,562
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

6,665,984 6,008,540 5,767,515 9,342,087 5,097,982 5,093,333 71,816 3,946,828 4,018,644 4,499,053 5,040,559 5,219,346

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 3,891,778 3,643,249 3,059,938 2,647,636 3,653,889 3,653,889 N/A 3,265,494 3,265,494 3,426,474 3,509,360 3,357,163
Capital Receipts 405,500 158,742 55,587 433,361 23,526 23,526 N/A 746 746 - 1,384 -

Total Crown Revenue and Capital Receipts

4,297,278 3,801,991 3,115,525 3,080,997 3,677,415 3,677,415 N/A 3,266,240 3,266,240 3,426,474 3,510,744 3,357,163

New Policy Initiatives

Budget Policy Intiatives - Finance
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Funding for 'Better services for less through optimisation of Administration and Support Services' Policy Advice: State Sector Performance
Departmental Output Expenses
1,500 - - - -
Provision of short-term trade credit insurance and increased facilities. New Zealand Export Credit Office
Departmental Output Expenses
1,193 838 - - -
Establishment of 2025 Productivity Taskforce Policy Advice: Economic Performance
Departmental Output Expenses
(171) (81) (81) - -
  2025 Productivity Taskforce
Non-Departmental Output Expenses
171 81 81 - -
New Zealand Productivity Commission. Policy Advice: Economic Performance
Departmental Output Expense
- (237) (467) (500) (500)
  Establishment of New Zealand Productivity Commission
Departmental Output Class
- 1,200 - - -
  Enquiries, Reviews and Research Into Productivity Related Matters
Non-Departmental Output Expense
- 655 4,691 5,028 5,030
  New Zealand Productivity Commission
Non-Departmental Capital Expenditure
- 500 - - -
Asian Development Bank General Capital Increase Asian Development Bank
Non-Departmental Capital Expenditure
- 71,000 - - -
Savings from Baseline Alignment Proposal 2010 Economic and Tax Forecasting
Departmental Output Expenses
(75) - - - -
  Fiscal Management
Departmental Output Expenses
(350) - - - -
  Fiscal Reporting
Departmental Output Expenses
(75) - - - -
  Management of Crown Lending and Crown Bank accounts
Departmental Capital Contribution
(180) - - - -
  Policy Advice: Fiscal and Macroeconomic
Departmental Output Expenses
(150) - - - -
Extension of the Retail Deposit Guarantee Scheme to 31 December 2011 Crown Guarantee Schemes
Departmental Output Expenses
4,383 3,717 2,401 225 225
  Crown Deposit Guarantee Scheme
Departmental Output Expenses
(3,100) (700) - - -
  Wholesale Guarantee Facility
Departmental Output Expenses
(1,283) (655) (225) (225) (225)
Budget 2010 Tax Package GST Compensation for Government Superannuation Fund and National Provident Fund recipients
Non-Departmental Other Expense
- 10,000 - - -
  Government Superannuation Fund Unfunded Liability
Non-Departmental Other Expense
- - 17,000 17,000 17,000

Analysis of Significant Trends

Total Vote: All Appropriations

The movements in departmental and non-departmental appropriations in Vote Finance, which are detailed in the Summary of Financial Activity table above, are largely due to movements in capital expenditure and movements in the Debt Servicing costs.

Details of significant movements within each appropriation category are shown below.

Departmental Output Expenses

Baselines decrease by nearly $1 million in 2010/11 in comparison to the previous year due to the following:

  • One-off funding of $1.500 million approved for the first stage of the Better Administrative and Support Services (BASS) programme was approved in 2009/10. There is no approved funding for this project for 2010/11.
  • There is a decrease of new funding for New Zealand Export Credit Office facility size extensions of $400,000 between years.
  • The decreases above are partially offset by an increase of $1.200 million for the Establishment of the New Zealand Productivity Commission in 2010/11.

Non-Departmental Output Expenses

This appropriation category has increased slightly due primarily to the costs of the New Zealand Productivity Commission offset by the finishing of the Regulatory Responsibility Taskforce in September 2009.

Non-Departmental Benefits and Other Unrequited Expenses

The Government Superannuation Fund Authority - Subsidies to Government Superannuation Fund Scheme appropriation was reclassified as a non-departmental other expense appropriation from 2007/08. Prior to 2007/08 the movements in the appropriation were largely owing to net movements in the Crown's liability to the Government Superannuation Fund.

Non-Departmental Borrowing Expenses

Debt servicing costs trend upwards up between 2008/09 and 2010/11. This variance depends on the interest rates and amount of debt outstanding.

Non-Departmental Other Expenses

Expenditure was broadly stable until 2007/08. As noted above from 2007/08 the movement in the Government Superannuation Fund unfunded liability was recorded in non-departmental other expenses, causing the large increase in that year relative to prior years. From a peak in 2008/09, expenditure decreases, largely owing to rail-related appropriations being transferred to Vote Transport, effective 1 July 2009. The 2009/10 year includes a budget of $1,178 million for payments in respect of guarantees and indemnities.

Non-Departmental Capital Expenditure

This appropriation category comprises purchases of debt and equity by the Crown in various Crown entities, and capital additions to the Crown's physical assets. In 2008/09, capital expenditure increased again, largely owing to the purchase of Toll NZ Limited's rail business and associated costs and a New Zealand Railways Corporation capital injection for the purchase of KiwiRail, a Reserve Bank equity injection of $600 million, increased contributions to the International Monetary Fund, and an increased contribution to the New Zealand Superannuation Fund. In 2009/10, the contributions to the International Monetary Fund remained relatively stable, while the contribution to the New Zealand Superannuation Fund fell considerably. The 2010/11 estimates does not include a contribution to the New Zealand Superannuation Fund or to the International Financial Institutions (IFI's).

Crown Revenue

Non-tax Crown revenue largely comprises capital charge, interest from securities and deposits, and dividends from State-owned enterprises and Crown entities. Crown revenue is broadly stable apart from peaks in 2005/06, 2006/07 and 2009/10. These peaks are largely due to one-off special dividends from Meridian Energy Limited in 2005/06, following the sale of its Australian investments, and increased Air New Zealand dividends. The increase in 2009/10 is a result of increased dividends from Meridian Energy and Might River Power as a result of record profits during the year.

Crown Capital Receipts

Variances in Crown capital receipts are largely due to International Monetary Fund capital returns and capital withdrawals from Crown companies.

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Finance
2009/10 Appropriations
in the 2009/10 Structure
2009/10
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2009/10 Appropriations
in the 2010/11 Structure
2009/10
(Restated)
$000
2010/11
$000
Departmental Output Expenses            
Crown Guarantee Schemes 5,471 Crown Guarantee Schemes 578 Crown Guarantee Schemes 6,049  
Crown Deposit Guarantee Scheme 437 Transferred from Crown Deposit Guarantee Scheme (437)      
Crown Wholesale Guarantee Facility 141 Transferred from Crown Wholesale Guarantee Facility (141)      
Total Changes in Appropriations -   -   -  

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

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Improved overall economic performance.
Impact: Enhancing national infrastructure planning and ensuring higher-quality asset management.
Infrastructure Advice and Coordination
Impact: Maintaining a robust and stable financial sector. Crown Guarantee Schemes output class
Administration of Guarantees and Indemnities given by the Crown
Impact: Increasing the level of export activity within the bounds of the Government's financial risk parameters set out in the delegation agreement. State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • New Zealand Export Credit Office output class
Impact: Achieving policies that promote economic growth, with a focus on increasing productivity. State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Policy Advice - Economic Performance output class
Establishment of New Zealand Productivity Commission
Outcome: A stable and sustainable macroeconomic environment.
Impact: Managing and issuing Crown debt in a way that minimises borrowing costs, and managing the financial assets under the control of the New Zealand Debt Management Office in a way that maximises long-term returns, all within an appropriate risk management framework.
Administration of Crown Borrowing
Administration of Derivative Transactions
Administration of Investment of Public Money
Impact: Contributing to Budget decisions that are conducive to achieving macroeconomic stability and meeting long-term fiscal challenges. Macro Economic Policy Advice and Management MCOA -
  • Economic and Tax Forecasting output class
  • Fiscal Management output class
  • Fiscal Reporting output class
  • Management of Crown Lending and Crown Bank Accounts output class
  • Policy Advice: Fiscal and Macroeconomic output class
Outcome: Improved state sector performance.
Impact: Ensuring the work of the state sector represents value for money in achieving the Government's priorities and generating the maximum possible benefit for taxpayers for a given level of expenditure.
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Policy Advice - State Sector Performance output class
Objective: To meet Crown liabilities and manage Crown assets efficiently.
Impact: Minimising Crown financial risk within the bounds of Government objectives.
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Management of Claims Against the Crown, Contractual Liabilities and Crown Properties output class

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

Administration of Crown Borrowing PLA (M31)

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with administering borrowing by the Crown, as authorised by section 61(1) of the Public Finance Act 1989.

Expenses and Revenue

Expenses and Revenue - Administration of Crown Borrowing PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,701 5,701 5,526
Revenue from Crown 5,603 5,603 5,428
Revenue from Other 98 98 98

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Crown Borrowing PLA (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Cost of new core Crown borrowing is less than the long term average cost of the New Zealand Government. N/A N/A Cost of new borrowing is less than 6%
Tender efficiency: Average domestic bond tender cover ratio. N/A N/A Average tender cover ratio is greater than 2
Tender efficiency: Average range of successful bids in domestic bond tenders. N/A N/A Average range of successful bids is less than 5 basis points
Funding risk: The nearest bond maturity will be at least 50% funded from the NZDMO's holdings of cash and short-term liquid assets within six months of maturity, and fully funded within three months. N/A N/A Funding Target met
Compliance with Risk management policies and parameters for portfolio management and debt issuance. No more than four breaches Three breaches No more than four breaches
Value-added from management of the Crown's debt and related financial assets to meet targets for tactical portfolios
(as specified in the Vote Finance Output plan).
$40 to $60 million $55 million $40 to $60 million
Average value at risk (VaR) for the tactical portfolios, at a confidence level of 95%. Average monthly VaR is less than $1.400 million Average VaR at $750,000 Average monthly VaR is less than $1.400 million
Losses incurred from the credit-related sale of securities, or from default by a counter-party. No losses No losses No losses
Number of settlement errors, and financial value of losses arising from settlement errors. No more than twelve errors; losses do not exceed $10,000 Two errors with losses of $2,000 No more than twelve errors; losses do not exceed $10,000

Notes

Performance targets: Administration of Crown Borrowing PLA, Administration of Derivative Transactions PLA and Administration of Investment of Public Money PLA

Performance targets have been specified as a total for activity across all three NZDMO PLA output classes, as it is more meaningful to aggregate the quantitative targets across these output classes. Measures have been cross-referenced in all three output classes.

Value-added from management of the tactical portfolios meets target level

NZDMO derives the value-added figure from its management reporting, which is calculated on a different basis from external Crown financial statement reporting. The 'tactical' portfolios are those where NZDMO is able to conduct discretionary transactions to manage risks: specifically, the liquidity, departmental and foreign exchange portfolios.

The NZDMO values its portfolio(s) by the commonly-used methodology of calculating net present values from all future cash flows using zero-coupon discount curves which are generated at least daily from current market data. Generally, no counter-party credit spreads are applied to the curves.

NZDMO uses current spot foreign exchange rates to translate foreign currency net present values to New Zealand dollars. The value-added measure is primarily used to compare current performance against historic performance. Historic performance helps guide the establishment of future targets, which are set annually taking into account changes in the external environment.

Compliance with risk management policies - performance measure

To improve transparency, the 2010/11 target explicitly identifies the number of breaches considered acceptable under existing NZDMO policy.

Average value at risk (VaR) - performance measure

The Minister of Finance has agreed to a limit for average monthly VaR across the whole of NZDMO's operations of $14 million. NZDMO's performance target for the tactical portfolios is set at 10% of the total limit, or $1.400 million.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Administration of Crown Borrowing PLA (M31) - Finance
Reference Conditions
Section 61(1) of the Public Finance Act 1989 Any expenses incurred in connection with any of the following matters may be incurred without further appropriation, and must be paid without further authority, than this section:
(a) negotiating the borrowing of money by the Crown; or
(b) undertaking the borrowing, or
(c) managing the borrowing, or
(d) servicing the borrowing, or
(e) converting the borrowing, or
(f) repaying the borrowing.

Administration of Derivative Transactions PLA (M31)#

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with administering derivative transactions of the Crown, as authorised by section 65H(2) of the Public Finance Act 1989.

Expenses and Revenue

Expenses and Revenue - Administration of Derivative Transactions PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,308 1,308 1,258
Revenue from Crown 1,285 1,285 1,236
Revenue from Other 23 23 22

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Derivative Transactions PLA (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Other Performance measures for this Output expense are aggregated in the Administration of Crown Borrowing PLA. Refer Budgeted Standard Administration of Crown Borrowing PLA Refer Estimated Actual Administration of Crown Borrowing PLA Refer Budget Standard Administration of Crown Borrowing PLA

Notes

Performance targets: Administration of Crown Borrowing PLA, Administration of Derivative Transactions PLA and Administration of Investment of Public Money PLA

Performance targets have been specified as a total for activity across all three NZDMO PLA output classes, as it is more meaningful to aggregate the quantitative targets across these output classes. Measures have been cross-referenced in all three output classes. The full set of measures, including targets for 2010/11 and relevant notes are published in the Administration of Crown Borrowing PLA.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Administration of Derivative Transactions PLA (M31) - Finance
Reference Conditions
Section 65H(2) of the Public Finance Act Any expenses incurred in connection with any of the following matters may be incurred without further appropriation and must be paid without further authority, than this section:
(a) negotiating a derivative transaction, or
(b) managing the derivative transaction, or
(c) servicing the derivative transaction, or
(d) making payments under the derivative transaction.

Administration of Guarantees and Indemnities given by the Crown PLA (M31)#

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with administering of guarantees and indemnities given by the Crown, as authorised by section 65ZG of the Public Finance Act 1989.

Expenses and Revenue

Expenses and Revenue - Administration of Guarantees and Indemnities given by the Crown PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,798 2,798 4,440
Revenue from Crown 2,776 2,776 4,418
Revenue from Other 22 22 22

Reasons for Change in Appropriation

The increase of $1.600 million from 2009/10 to 2010/11 relates to the increased number of entities whose depositors are expected to be paid out in 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Guarantees and Indemnities given by the Crown PLA (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
No unnecessary delays in processing applications Achieved Achieved Achieved
Accuracy of payouts N/A N/A Achieved

This Performance measure was formerly part of State Sector and Economic Performance Policy Advice and Management MCOA (M31).

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Administration of Guarantees and Indemnities given by the Crown PLA (M31) - Finance
Reference Conditions
Section 65ZG of the Public Finance Act Any money paid by the Crown under a guarantee or indemnity given under section 65ZD and any expenses incurred by the Crown in relation to the guarantee or indemnity may be incurred without further appropriation, and must be paid without further authority, than this section.

Administration of Investment of Public Money PLA (M31)#

Scope of Appropriation

This appropriation is limited to expenses incurred in connection with administering the investment of public money, as authorised by section 65J(1) of the Public Finance Act 1989.

Expenses and Revenue

Expenses and Revenue - Administration of Investment of Public Money PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 313 313 320
Revenue from Crown 309 309 316
Revenue from Other 4 4 4

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Investment of Public Money PLA (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Other Performance measures for this Output expense are aggregated in the Administration of Crown Borrowing PLA. Refer Budgeted Standard, Administration of Crown Borrowing PLA Refer Estimated Actual Standard, Administration of Crown Borrowing PLA Refer Budget Standard, Administration of Crown Borrowing PLA

Notes

Performance targets: Administration of Crown Borrowing PLA, Administration of Derivative Transactions PLA and Administration of Investment of Public Money PLA

Performance targets have been specified as a total for activity across all three NZDMO PLA output classes, as it is more meaningful to aggregate the quantitative targets across these output classes. Measures have been cross-referenced in all three output classes. The full set of measures, including targets for 2009/10 and relevant notes are published in the Administration of Crown Borrowing PLA.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Administration of Investment of Public Money PLA (M31) - Finance
Reference Conditions
Section 65J of the Public Finance Act Costs, charges and expenses incurred with connection with Section 65J(2).

Crown Guarantee Schemes (M31)#

Scope of Appropriation

This appropriation is limited to the implementation and operation of the Crown's Deposit Guarantee Scheme and Crown's Wholesale Funding Guarantee Facility excluding expenses incurred in connection with administrating claims under a guarantee or indemnity given under the scheme.

Expenses and Revenue

Expenses and Revenue - Crown Guarantee Schemes (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,471 3,238 3,717
Revenue from Crown 5,428 3,195 3,674
Revenue from Other 43 43 43

Reasons for Change in Appropriation

The 2010/11 appropriation relates to the Cabinet approval of $3.700 million for the extension of the Deposit Guarantee Scheme to 31 December 2011. On 10 March 2010, the Minister of Finance announced the closure of the Wholesale Funding Guarantee Facility effective from 30 April 2010.

The 2009/10 appropriation includes an expense transfer from 2008/09 of $967,000 for litigation costs that may occur.

Output Performance Measures and Standards

Output Performance Measures and Standards - Crown Guarantee Schemes (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
No unnecessary delays in processing applications Achieved Achieved N/A
Development and implementation of an overall plan for managing the Crown interests including default events Achieved Achieved Achieved
Active monitoring of guaranteed institutions is undertaken to minimise Crown exposure Achieved Achieved Achieved
Treasury actively manages the Crown interests in the event of a specific default Within 7 days of default Achieved Within 7 days of default

These performance measures were formerly part of State Sector and Economic Performance Policy Advice and Management MCOA (M31).

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Crown Guarantee Schemes (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Extension of the Retail Deposit Guarantee Scheme to 31 December 2011 and establishment of new annual appropriation at 1 September 2009. 2009/10 4,383 3,717 2,401 225 225

Establishment of the New Zealand Productivity Commission (M31)#

Scope of Appropriation

This appropriation is limited to the establishment costs of the New Zealand Productivity Commission.

Expenses and Revenue

Expenses and Revenue - Establishment of the New Zealand Productivity Commission (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 1,200
Revenue from Crown - - 1,200
Revenue from Other - - -

Reasons for Change in Appropriation

Establishment of the New Zealand Productivity Commission is a new appropriation for 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - Establishment of the New Zealand Productivity Commission (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Commissioners are appointed by 28 February 2011 N/A N/A Achieved
25% of the Commission's staff have been recruited by April 2011 N/A N/A Achieved
The Commission is ready to begin an inquiry in April 2011 in accordance with legislation. N/A N/A Achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Establishment of the New Zealand Productivity Commission (M31) - Finance
Reference Conditions
Quality Standard for Policy Advice Refer to Macro Economic Policy Advice & Management MCOA (M31) Output expense where the quality standard is published in full.
Policy Standard Ratings In 2008/09 the Treasury commissioned an external review to assess the standard of policy advice on a sample of policy outputs provided during that financial year. That review established a benchmark against which to assess future performance. The Treasury intends to commission biennial reviews of the quality of its policy advice to provide an assessment of its performance against the standard.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Establishment of the New Zealand Productivity Commission (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Establishment of the New Zealand Productivity Commission 2010/11 - 1,200 - - -

Infrastructure Advice and Co-ordination (M80)#

Scope of Appropriation

This appropriation is limited to the provision of advice to the Government and to Government agencies on infrastructure, ensuring co-ordination and implementation of the Government's infrastructure activities, the formulation and implementation of the National Infrastructure Plan, monitoring of infrastructure investment and frameworks, and operation of the National Infrastructure Advisory Board.

Expenses and Revenue

Expenses and Revenue - Infrastructure Advice and Coordination (M80) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,052 4,852 4,799
Revenue from Crown 4,973 4,773 4,720
Revenue from Other 79 79 79

Output Performance Measures and Standards

Output Performance Measures and Standards - Infrastructure Advice and Coordination (M80) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All policy outputs comply with Treasury's Quality Standards for Policy (refer Conditions on Use of Appropriation), as assessed by the Minister three times during the year. Rated as meeting and frequently exceeding expectations Not formally assessed N/A
All Policy advice complies with Treasury's Quality Standards for Policy (refer Conditions on Use of Appropriation). N/A N/A Achieved
Successful completion and publication of first National Infrastructure Plan. Achieved Achieved N/A
Publication of a revised National Infrastructure Plan by June 2011. N/A N/A Achieved
Introduction of Utilities Access Code Bill by 30 June 2011. N/A N/A Achieved
Successful completion of First Tranche of Fibre to the Home (FTTH). N/A N/A Achieved
Two Public Private Partnerships (PPP's) in market by 30 June 2011. N/A N/A Achieved
Completion and implementation of standardised business case requirements for capital intensive government agencies. N/A N/A Achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Infrastructure Advice and Coordination (M80) - Finance
Reference Conditions
Quality Standards for Policy Advice Refer to Macro Economic Policy Advice & Management MCOA (M31) Output expense where the quality standard is published in full.
Policy Standard Ratings In 2008/09 the Treasury commissioned an external review to assess the standard of policy advice on a sample of policy outputs provided during that financial year. That review established a benchmark against which to assess future performance. The Treasury intends to commission biennial reviews of the quality of its policy advice to provide an assessment of its performance against the standard.
First National Infrastructure Plan This measure relates to a new task. This measure will need to be reviewed after the Plan is delivered to reflect the ongoing implementation and monitoring of the Plan.

Macro Economic Policy Advice & Management MCOA (M31)#

Scope of Appropriation

Economic and Tax Forecasting
This output class is limited to the preparation of economic and tax forecasts, and monitoring of and reporting on economic and tax conditions.
Fiscal Management
This output class is limited to the development of the Budget strategy and advice, and activities of the annual Budget process.
Fiscal Reporting
This output class is limited to preparing fiscal forecasts, monitoring of and reporting on fiscal conditions, preparing the financial statements of the Government, providing advice on the application and development of generally accepted accounting practice as it applies to the Crown, and monitoring the adequacy of departmental financial management controls.
Management of Crown Lending and Crown Bank Accounts
This output class is limited to the management of Crown lending and Crown and Departmental bank accounts.
Policy Advice: Fiscal and Macroeconomic
This output class is limited to the provision of fiscal and macroeconomic policy advice.

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes all contribute to the outcome of a stable and sustainable macroeconomic environment in New Zealand.

Expenses and Revenue

Expenses and Revenue - Macro Economic Policy Advice & Management MCOA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

14,316 14,316 14,910
Economic and Tax Forecasting 2,755 2,755 2,691
Fiscal Management 3,197 3,197 3,290
Fiscal Reporting 3,708 3,708 3,588
Management of Crown Lending and Crown Bank Accounts 360 360 540
Policy Advice: Fiscal and Macroeconomic 4,296 4,296 4,801

Revenue from Crown

14,080 14,080 14,674
Economic and Tax Forecasting 2,705 2,705 2,641
Fiscal Management 3,147 3,147 3,240
Fiscal Reporting 3,650 3,650 3,530
Management of Crown Lending and Crown Bank Accounts 354 354 534
Policy Advice: Fiscal and Macroeconomic 4,224 4,224 4,729

Revenue from Other

236 236 236
Economic and Tax Forecasting 50 50 50
Fiscal Management 50 50 50
Fiscal Reporting 58 58 58
Management of Crown Lending and Crown Bank Accounts 6 6 6
Policy Advice: Fiscal and Macroeconomic 72 72 72

Reasons for Change in Appropriation

These appropriations have been changed to reflect Ministerial priorities.

Output Performance Measures and Standards

Output Performance Measures and Standards - Macro Economic Policy Advice & Management MCOA (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All Classes of Outputs Within this Appropriation      
All policy advice outputs comply with Treasury's Quality Standards for Policy (refer Conditions on Use of Appropriation), as assessed by the Minister three times during the year. Rated as meeting and frequently exceeding expectations Not formally assessed N/A
All policy advice complies with Treasury's Quality Standards for Policy (refer Conditions on Use of Appropriation). N/A N/A Achieved
Production of advice that provides options which allow the Government to deliver a credible fiscal strategy consistent with the fiscal prudence provisions of the Public Finance Act. Where this advice is underpinned by modelling, the models are externally quality assured and, where appropriate, assumptions are tested with suitably qualified external experts. Achieved Achieved Achieved
Fiscal Management      
Advice and processes required as part of the annual Budget process to assist the Government to pursue its policy priorities in accordance with the principles of responsible fiscal management and support effective and efficient management of public financial resources (conditions set out below). Achieved Achieved Achieved
Fiscal Reporting      
Audit opinion issued by the Controller and Auditor-General on the Financial Statements of Government. Unqualified Unqualified Unqualified
Economic and Tax Forecasting      
Tax revenue forecast error on one-year-ahead forecasts. (Tax revenue forecast root mean square error and mean error over the 5 years to June 2007 were 4.4% and 4.2% respectively). Less than 3% Achieved Less than 3%
Policy Advice: Fiscal and Macroeconomic      
Production of advice that provides options which allow the Government to deliver a credible fiscal strategy consistent with the fiscal prudence provisions of the Public Finance Act. Where this advice is underpinned by modelling, the models are externally Quality Assured and, where appropriate, assumptions are tested with suitably qualified external experts. Achieved Achieved Achieved
Management of Crown Lending and Crown Bank Accounts      
Value-added for Crown lending meets target level. $15-20 million $5 million $5 million
Average value at risk (VaR) for Crown lending, at a 95% confidence level. Average monthly VaR does not exceed $1.400 million Average monthly VaR is $200,000 Average monthly VaR does not exceed $1.400 million
Compliance with risk management policies and parameters for management of Crown lending and Crown bank accounts. No compliance breaches No breaches No breaches

Average value at risk (VaR) - performance measure

The Minister of Finance has agreed to a limit for average monthly VaR across the whole of NZDMO's operations of $14 million. NZDMO's performance target for Crown lending activities is set at 10% of the total limit, or $1.400 million.

Conditions on Use of Appropriation

Dimensions of Quality Policy Advice - Finance
Policy Standard Ratings Quality Standards for Policy Advice
In 2008/09 the Treasury commissioned an external review to assess the standard of policy advice on a sample of policy outputs provided during that financial year. That review established a benchmark against which to assess future performance. The Treasury intends to commission biennial reviews of the quality of its policy advice to provide an assessment of its performance against the standard. This Quality Standard for Policy Advice sets out the characteristics or dimensions of policy advice that will best enable it to promote well-informed high-quality decision-making by Ministers. However, the quality dimensions below are not a checklist and not all dimensions will be equally important in every case - judgements are required at the outset about how to apply and balance the quality dimensions to ensure a particular piece of advice is fit for purpose in achieving the result sought.
When undertaking a piece of work, explicit consideration needs to be given to the following:
  • What point are Ministers at in their decision-making process? Can Treasury add value? What are our opportunities to have an impact?
  • What result are we seeking by providing a piece of advice?
  • How should the quality dimensions below be applied and balanced to achieve this result?
  • What is the relative priority of this piece of work?
  • What level of investment is warranted?
Dimensions of Quality Policy Advice
Analytically Rigorous (Analysis) Set in a Wider Strategic Context (Applied Analysis) Customer-focused and Persuasive (Advice)

Relevant Frameworks

  • Appropriate analytical frameworks are used, and: knowledge is up-to-date and informed by recent thinking and literature in the field.
  • Assumptions behind the frameworks used are explicit and consideration has been given to how they will be expected to play out in the real world (a world which includes information and transaction costs, market failure, government failure, etc).
  • Consideration has been given to less traditional frameworks and whether they would add innovative or useful perspectives.

Strategic

  • Advice is set in the context of the Treasury's results and informed by a strategic view about what is important.
  • We are explicit about the relative importance and materiality of the issue, in fiscal, economic and strategic terms.
  • Connections across policy issues are made, ensuring that Ministers receive a whole-of-government perspective.
  • Advice considers the long-term implications of decisions and provides a perspective that goes beyond immediate impacts.
  • We frame issues and help set the agenda.

Clear

  • Advice is compellingly presented. It is: brief and concise - key messages should be readily apparent to the reader.
  • Easy to read - has a clear and logical structure, avoids technical jargon and uses visual devices such as charts and tables where possible.
  • Pitched to suit the target audience - uses appropriate language, style and level of detail.
  • Framed in terms of how it fits with previous advice and communications with the Minister.

Robust Reasoning and Logic

  • Advice has a clear purpose, problem definition, evaluation of options against criteria, and assessment of risks and opportunities. We come to a conclusion and give action-oriented recommendations.

Practical

  • Issues of implementation, technical feasibility, practicality and timing are considered and advice accurately identifies compliance, transitional, legislative, revenue and administrative implications and costs.

Timely

  • Reports should meet Ministers' need for advice that helps in the decision-making process (even if it means, at times, that advice is not fully developed) and indicate when a decision is required.

Evidence-based

  • Analysis is supported by relevant evidence: Empirical methods are sound, data gaps are identified and the level of confidence/certainty in our empirical base is explicit.
  • We draw on New Zealand experience of current and past policy interventions and, where relevant, the experience of other countries.
  • We give our best judgement despite data imperfections; we acknowledge information limitations and advise within them.

Public Sector Consultation

  • Ministers receive advice that enables them to engage with their colleagues on a fully informed basis because: thorough and timely consultation with other government departments has occurred and points of difference, and the reasons for these, are set out.
  • Where possible, advice is developed in conjunction with relevant government agencies.

Politically Aware

  • Advice: demonstrates awareness of the wider environment and political situation.
  • Is based on a clear understanding of the desired outcomes of the Minister/Government.
  • Relates to the perspectives of Ministers, even if suggesting something that tests those perspectives.
  • Recognises choices and constraints Ministers face, and includes a range of options to address these.

Free and Frank

  • Our advice is honest, impartial and politically neutral - we have a duty to alert Ministers to the possible consequences of following particular policies, whether or not such advice accords with Ministers' views. Good free and frank advice is offered with an understanding of its political context and the constraints within which the Minister is operating.

Perspectives of Wider Stakeholders

  • We understand and advise Ministers on the perspective of groups outside the public sector, consult with key stakeholders, and provide advice on communications where appropriate.

Solution-focused

  • We are proactive, anticipating, as well as responding to, Ministers' needs. Advice suggests a clear way forward ("Here is what you can do" as well as "Here is a problem") and includes a range of practical options (first best advice, but also second and third).
Conditions on Use of Appropriation - Macro Economic Policy Advice & Management MCOA (M31) - Finance
Reference Conditions
Fiscal Management - Management of the annual financial cycle. All process guidance, incorporating any appropriate changes arising from the annual process review, is released no later than 30 working days prior to departmental submission.
  All guidance issued is sufficiently comprehensive and clear and does not require formal clarification.
  Budget strategy advice and the Budget Policy Statement (BPS) are developed to support the Government's fiscal policy objectives.
  Treasury advice on the Budget provides options that enable the Government to deliver the Budget consistent with the BPS.
  All statutory requirements of the Public Finance Act requirements are met.
  To determine changes to improve future processes the Annual review of process stakeholders is completed in the first quarter.

State Sector and Economic Performance Policy Advice and Management MCOA (M31)#

Scope of Appropriation

Crown Deposit Guarantee Scheme
This output class is limited to the implementation and operation of the Crown's deposit guarantee scheme excluding expenses incurred in connection with administering claims under a guarantee or indemnity given under the scheme.
Crown Wholesale Guarantee Facility
This output class is limited to the implementation and operation of the Crown's wholesale guarantee facility.
Management of Liabilities, Claims Against the Crown and Crown Properties
Management of contractual or Treaty of Waitangi related claims against the Crown and the management of New Zealand House, London.
New Zealand Export Credit Office
Implementation of the Government's Export Credit Guarantees policy and operation of the New Zealand Export Credit Office.
Policy Advice: Economic Performance
Policy advice on the Government's economic strategy and policy settings and their effect on New Zealand's economic growth.
Policy Advice: State Sector Performance
Policy advice on the effective and efficient use of state resources including improved decision-making and performance management systems and the efficient management of Crown assets.

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes all contribute to the outcomes of improving New Zealand's overall economic performance and improving state sector performance.

Expenses and Revenue

Expenses and Revenue - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

36,253 34,037 34,271
Crown Deposit Guarantee Scheme 437 437 -
Crown Wholesale Guarantee Facility 141 141 -
Management of Liabilities, Claims Against the Crown and Crown Properties 1,574 1,374 1,922
New Zealand Export Credit Office 4,144 2,878 3,631
Policy Advice: Economic Performance 14,041 14,041 14,875
Policy Advice: State Sector Performance 15,916 15,166 13,843

Revenue from Crown

35,647 33,431 33,664
Crown Deposit Guarantee Scheme 410 410 -
Crown Wholesale Guarantee Facility 134 134 -
Management of Liabilities, Claims Against the Crown and Crown Properties 1,550 1,350 1,898
New Zealand Export Credit Office 4,093 2,827 3,580
Policy Advice: Economic Performance 13,789 13,789 14,623
Policy Advice: State Sector Performance 15,671 14,921 13,563

Revenue from Other

606 606 607
Crown Deposit Guarantee Scheme 27 27 -
Crown Wholesale Guarantee Facility 7 7 -
Management of Liabilities, Claims Against the Crown and Crown Properties 24 24 24
New Zealand Export Credit Office 51 51 51
Policy Advice: Economic Performance 252 252 252
Policy Advice: State Sector Performance 245 245 280

Reasons for Change in Appropriation

The decrease in the appropriation in 2010/11 is largely a result of new funding being provided in the 2009/10 Supplementary Estimates for the benchmarking and target setting phase of the Better Administration Support Services Project.

Output Performance Measures and Standards

Output Performance Measures and Standards - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All Classes of Outputs Within the Appropriation      
All policy advice complies with Treasury's Quality Standards for Policy (refer Conditions on Use of Appropriation), as assessed by the Minister three times during the year. Rated as meeting and frequently exceeding expectations Not formally assessed N/A
All Policy advice complies with Treasury's Quality Standards for Policy (refer Conditions on Use of Appropriations) N/A N/A Achieved
Management of Liabilities, Claims Against the Crown and Crown Properties      
Management and resolution of liabilities and claims within parameters set by Ministers. Achieved Achieved Achieved
New Zealand Export Credit Office      
Conform to international best practice for the provision of the export credit insurance, as specified in OECD and WTO guidelines. 100% 100% 100%
Value of new export credit guarantees. $46 million $99.200 million $114.400 million
Value of new US contract bonds. $82 million $6.400 million $52.600 million
Value of new non-US contract bonds. $10 million $34.600 million $20 million
Value of new working capital guarantees. $5 million - $4.500 million
Value of short-term trade credit guarantees. $48.800 million $31.800 million $77.100 million
Policy Advice: Economic Performance      
Regulatory Impact Analysis: Number of significant Regulatory Impact Statements assessed. 20 50 40
Policy Advice: State Sector Performance      
Vote analysis: Supporting the Government by pursuing policy priorities and fiscal policy objectives through the analysis and advice provided as part of the annual Budget cycle. Achieved Achieved Achieved

Conditions on Use of Appropriation

Conditions on Use of Appropriation - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
Reference Conditions
Quality Standards for Policy Advice Refer to Macro Economic Policy Advice & Management MCOA (M31) Output expense where the quality standard is published in full.
Policy Standard Ratings In 2008/09, the Treasury commissioned an external review to assess the standard of policy advice on a sample of policy outputs provided during that financial year. That review established a benchmark against which to assess future performance. The Treasury intends to commission biennial reviews of the quality of its policy advice to provide an assessment of its performance against the standard.
Management and resolution of liabilities and claims within parameters set by Ministers The output class covers the management and resolution of contingent or actual liabilities associated with various Crown commitments and assets - for instance, gas and geothermal reserves, Treaty settlements and New Zealand House.
In some cases, Treasury is a provider of second-opinion advice rather than a lead agency on these matters.
Regulatory impact analysis Regulatory impact analysis is a new function for Treasury.
Vote analysis This measure covers analysis and advice on: Budget bids; baseline updates; line-by-line reviews; in-depth reviews; supporting Expenditure Control Committee; financial recommendations in Cabinet papers; between Budget spending; and accountability documents.
  • Treasury advice across Votes enables the Government to deliver the Budget consistent with the Budget Policy Statement.
  • Treasury advice across Votes drives better value for money and higher performance in the public sector to help deliver the Government's policy objectives cost-effectively.
  • All statutory requirements of the Public Finance Act are met.
Annual review is undertaken with stakeholders to identify changes to improve future processes.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Provision of short-term trade credit insurance and increased facilities. 2009/10 1,193 838 - - -
Funding for Better Administration Support Services Project. 2009/10 1,500 - - - -
Treasury advice on Government priorities. 2009/10 2,710 3,250 3,725 4,042 -
Secretariat to the Regulatory Responsibility Taskforce. 2009/10 153 - - - -
Provision of short-term trade credit insurance. 2008/09 275 258 - - -
Implementing a more co-coordinated and integrated Regulated Policy Quality Assurance system. 2008/09 1,379 1,379 1,379 1,379 -
Meet higher-than-anticipated demand for New Zealand Export Credit Office contract bond product and extend the product to other countries that impose contract bond requirements on exporters. 2007/08 140 140 - - -
New Zealand Export Credit Office development of US contract bonds and trade finance export products. 2007/08 401 416 - - -
Extension of the New Zealand Export Credit Office US contract bond product. 2007/08 350 350 - - -

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Government Objective: To meet Crown liabilities and manage Crown assets efficiently.
Specific Objective: To minimise Crown financial risk within the bounds of Government objectives.
Management of the Crown's Obligations for Geothermal Wells
Objective: To manage New Zealand House efficiently and minimise Crown financial risks associated with property ownership Management of New Zealand House, London
Government Objective: To manage a fund for the future cost of New Zealand superannuation, without undue risk, and to avoid prejudice to New Zealand's reputation as a responsible member of the world community.
Specific Objective: To maximise returns on the New Zealand Superannuation Fund without undue risk to the fund as a whole.
Management of the New Zealand Superannuation Fund
Government Objective: To make the New Zealand economy more productive.
Specific Objective: To improve regulatory review and decision making processes including legislation and Standing Orders.
2025 Productivity Taskforce
Enquiries, Reviews and Research Into Productivity Related Matters

 

2025 Productivity Taskforce (M31)

Scope of Appropriation

This appropriation is limited to the fees and expenses of members of the Taskforce appointed to carry forward work on the productivity gap with Australia, and the fees and expenses for any other advice that the Taskforce may commission.

Expenses

Expenses - 2025 Productivity Taskforce (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 171 171 81

Reasons for Change in Appropriation

The decrease in expenditure in 2010/11 reflects the expenditure phasing of the Taskforces project across three financial years.

Output Performance Measures and Standards

Output Performance Measures and Standards - 2025 Productivity Taskforce (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Initial taskforce report due by 30 November 2009 Achieved Achieved N/A
Second taskforce report providing further analysis and recommendations and assessing progress delivered by 31 October 2010. N/A N/A Achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - 2025 Productivity Taskforce (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Establishment of the 2025 Productivity Taskforce 2009/10 171 81 81 - -

Enquiries, Reviews and Research Into Productivity Matters (M31)#

Scope of Appropriation

This appropriation is limited to enquiries, reviews and research into productivity related activities.

Expenses

Expenses - Enquiries, Reviews and Research Into Productivity Matters (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 655

Reasons for Change in Appropriation

This will be the first year of operation for this appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Enquiries, Reviews and Research Into Productivity Matters (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The New Zealand Productivity Commission will operate in accordance with their Statement of Intent (see Note 1). N/A N/A Achieved

Note 1 - For further information on the intended impacts, outcomes and objectives of the Non-Departmental Output Expense appropriations, please see the Statements of Intent of the Guardians of New Zealand Superannuation and New Zealand Productivity Commission.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Enquiries, Reviews and Research Into Productivity Matters (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Enquiries, Reviews and Research Into Productivity Related Matters 2010/11 - 655 4,691 5,028 5,030

Management of New Zealand House, London (M31)#

Scope of Appropriation

This appropriation is limited to the property management services in respect of New Zealand House, London.

Expenses

Expenses - Management of New Zealand House, London (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 1,000 1,000

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of New Zealand House, London (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Optimise New Zealand House rental revenue. Achieved Not achieved Achieved
Occupancy rates maximised. Achieved Not achieved Achieved
Maintain the property to support the achievement of revenue and occupancy objectives. Achieved Achieved Achieved

Management of the Crown's Obligations for Geothermal Wells (M31)#

Scope of Appropriation

This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.

Expenses

Expenses - Management of the Crown's Obligations for Geothermal Wells (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 351 351 151

Reasons for Change in Appropriation

A one-off expense of $200,000 was budgeted for in 2009/10 to perform remedial work on redundant geothermal assets at Wairakei.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of the Crown's Obligations for Geothermal Wells (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Monitor and maintain wells through regular inspections and completion of standard maintenance actions. Achieved Achieved Achieved

Management of the New Zealand Superannuation Fund (M31)#

Scope of Appropriation

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.

Expenses

Expenses - Management of the New Zealand Superannuation Fund (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 504 504 516

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of the New Zealand Superannuation Fund (M31) - Finance
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Guardians of New Zealand Superannuation manage and administer the Fund in accordance with their Statement of Intent. Achieved Achieved Achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of the New Zealand Superannuation Fund (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Funding for the Guardians of New Zealand Superannuation following independent review. (This funding was subsequently reduced following a review of the allocation of costs between the Guardians and the New Zealand Superannuation Fund.) 2004/05 2,044 - - - -

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Finance
Provider 2009/10
Budgeted
$000
2009/10
Estimated Actual
$000
2010/11
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
Crown Entities          
The Guardians of New Zealand Superannuation
  • Guardians of New Zealand Superannuation
504 504 516 Providers annual report Ongoing
The New Zealand Productivity Commission
  • Enquiries, Reviews and Research Into Productivity Related Matters
- - 655 Providers annual report Ongoing
Non-Government Organisations          
King Sturge International Property Consultants, London
  • Management of New Zealand House
1,000 1,000 1,000 Not required 2010
Aurecon Limited and other providers
  • Management of Residual Geothermal Liabilities
351 351 151 Not required 2011
Regulatory Responsibility Taskforce
  • Regulatory Responsibility Taskforce
120 120 - Not required 2010
2025 Productivity Taskforce
  • 2025 Productivity Taskforce
171 171 81 Not required 2012

The above table summarises funding to be allocated through Vote Finance 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 4 - Details for Borrowing Expenses#

Part 4.2 - Non-Departmental Borrowing Expenses

Debt Servicing PLA (M31)

Scope of Appropriation

This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.

Expenses

Expenses - Debt Servicing PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,288,836 2,288,836 3,058,421

Reasons for Change in Appropriation

The change reflects interest rate movements and the amount of debt outstanding.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective - To meet Crown liabilities and manage Crown assets efficiently. Crown Residual Liabilities
  Geothermal Wells Fund
  Government Superannuation Appeals Board
  Government Superannuation Fund Authority - Crown's Share of Expenses
  Government Superannuation Fund Unfunded Liability
  GST Compensation for Government Superannuation Fund and National Provident Fund recipients
  Impairment of Loans to Taitokerau Forest
  National Provident Fund Schemes - Liability Under Crown Guarantee
  New Zealand House, London
  Taitokerau Forests Limited Grant
  Unclaimed Money
  Unclaimed Trust Money

Crown Residual Liabilities (M31)

Scope of Appropriation

Residual obligations arising from administration of the Crown's sale and purchase agreements with SOEs and Crown entities and from the sale of Crown investments, and for the settlement of claims against the Crown arising from exposure to asbestos.

Expenses

Expenses - Crown Residual Liabilities (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 230 230 230

Expected Results

Expected Results - Crown Residual Liabilities (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Settlements are within limits agreed by the Minister. Achieved Achieved Achieved

Geothermal Wells Fund (M31)#

Scope of Appropriation

This appropriation is limited to meeting the costs of one-off unforeseen events relating to those geothermal wells for which the Crown accepts responsibility.

Expenses

Expenses - Geothermal Wells Fund (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 500 500

Expected Results

Expected Results - Geothermal Wells Fund (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Damages are made good within agreed timeframes and budgets. Achieve for all such events (no more than one expected in a year) No events in year Achieve for all such events (no more than one expected in a year)

Government Superannuation Appeals Board (M31)#

Scope of Appropriation

This appropriation is limited to the expenses of the Government Superannuation Appeals Board in performing its functions under the Government Superannuation Fund Act 1956.

Expenses

Expenses - Government Superannuation Appeals Board (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 50 50 50

Expected Results

Expected Results - Government Superannuation Appeals Board (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Board members' fees and disbursements are consistent with Cabinet Office Guidelines. Achieved Achieved Achieved

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31)#

Scope of Appropriation

This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Act 1956.

Expenses

Expenses - Government Superannuation Fund Authority Crown's Share of Expenses PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 19,692 19,692 23,760

Reasons for Change in Appropriation

Custodial, investment and administration costs are higher due to an increase in assets under fund management.

Expected Results

Expected Results - Government Superannuation Fund Authority Crown's Share of Expenses PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Crown's share of management and administration fees is paid in accordance with the Government Superannuation Fund's determination and certification of the Government Actuary. Achieved Achieved Achieved

Government Superannuation Fund Unfunded Liability PLA (M31)#

Scope of Appropriation

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Act 1956.

Expenses

Expenses - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 663,000 663,000 684,117

Reasons for Change in Appropriation

Current service and interest unwinding costs are forecast to be higher in 2010/11 as a result of increases in CPI indexation and discount rates.

Expected Results

Expected Results - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Recognition of the Crown's GSF obligations in the Financial Statements of the Government. Unqualified audit opinion Unqualified audit opinion Unqualified audit opinion
Tax payments are accurate and paid within deadlines. Met Met Met

 

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Budget 2010 Tax Package 2011/12 - - 17,000 17,000 17,000

 

 

GST Compensation for Government Superannuation Fund and National Provident Fund recipients (M31)#

Scope of Appropriation

This appropriation is limited to compensation for recipients of the Government Superannuation Fund and the National Provident Fund due to increases in GST between 1 October 2010 and 27 April 2011.

Expenses

Expenses - GST Compensation for Government Superannuation Fund and National Provident Fund recipients (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 10,000

Reasons for Change in Appropriation

This new appropriation is a result of the Budget 2010 Tax Package.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - GST Compensation for Government Superannuation Fund and National Provident Fund recipients (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Budget 2010 Tax Package 2010/11 - 10,000 - - -

Impairment of Loans to Taitokerau Forest Limited (M31)#

Scope of Appropriation

This appropriation is limited to the expense incurred on the impairment of new loans to Taitokerau Forests Limited.

Expenses

Expenses - Impairment of Loans to Taitokerau Forest Limited (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,100 3,100 800

Reasons for Change in Appropriation

The impairment expense varies due to the profile of additional loan funding provided to Taitokerau Forests.

Expected Results

Expected Results - Impairment of Loans to Taitokerau Forest Limited (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Impairment of loans to Taitokerau Forest Limited correctly recorded in the Financial Statements of the Government. N/A Achieved Achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Impairment of Loans to Taitokerau Forest Limited (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Renegotiation of Crown loan to Taitokerau Forests Limited. 2008/09 1,400 800 800 800 -

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31)#

Scope of Appropriation

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in section 60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by section 66 of the National Provident Fund Restructuring Act 1990.

Expenses

Expenses - National Provident Fund Schemes Liability Under Crown Guarantee PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 62,000 62,000 60,000

Reasons for Change in Appropriation

The decrease reflects marginal changes to the forecast assumptions, other than actuarial gains and losses, in the Crown's liability under section 60 of the National Provident Fund Restructuring Act 1990.

Expected Results

Expected Results - National Provident Fund Schemes Liability Under Crown Guarantee PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Crown's liability for benefits payable to members of National Provident Fund schemes is correctly recorded in the Financial Statements of the Government. N/A Unqualified audit opinion Unqualified audit opinion

New Zealand House, London (M31)#

Scope of Appropriation

This appropriation is limited to the operational costs of New Zealand House, London.

Expenses

Expenses - New Zealand House, London (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,700 14,700 16,200

Reasons for Change in Appropriation

New Zealand House operating costs were reduced in 2009/10 as a result of foreign exchange rate movements and lower occupancy rates during the year.

Expected Results

Expected Results - New Zealand House, London (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Net rental from commercial space is optimised. Achieved Achieved Achieved
New Zealand House is maintained to provide office accommodation of a suitable standard for New Zealand Government entities in London. Achieved Achieved Achieved

Taitokerau Forests Limited Grant (M31)#

Scope of Appropriation

This appropriation is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.

Expenses

Expenses - Taitokerau Forests Limited Grant (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 300 300 200

Reasons for Change in Appropriation

This expense varies due to the profile of the grant funding in accordance with Taitokerau forests Limited agreement.

Expected Results

Expected Results - Taitokerau Forests Limited Grant (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Grant payment is made in accordance with the Taitokerau Forests Limited agreement. Achieved Achieved Achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Taitokerau Forests Limited Grant (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Renegotiation of Crown loan to Taitokerau Forests which also included a grant to maintain and develop the forests. 2009/10 300 200 300 200 -

Unclaimed Money PLA (M31)#

Scope of Appropriation

This appropriation is limited to the repayment of money authorised by section 74(5) of the Public Finance Act 1989.

Expenses

Expenses - Unclaimed Money PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 250 250 250

Expected Results

Expected Results - Unclaimed Money PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Repayment of unclaimed money to claimants is performed in accordance with section 74(5) of the Public Finance Act 1989. Achieved Achieved Achieved

Unclaimed Trust Money PLA (M31)#

Scope of Appropriation

This appropriation is limited to the repayment of money authorised by section 70(2) of the Public Finance Act 1989.

Expenses

Expenses - Unclaimed Trust Money PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 250 250 250

Expected Results

Expected Results - Unclaimed Trust Money PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Repayment of unclaimed money to claimants is performed in accordance with section 70(2) of the Public Finance Act 1989. Achieved Achieved Achieved

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
Crown Residual Liabilities Not required
Geothermal Wells Fund Not required
Government Superannuation Appeals Board Not required
Government Superannuation Fund Authority - Crown's Share of Expenses Annual report of the Government Superannuation Fund Authority
Government Superannuation Fund Unfunded Liability Not required
Impairment of Loans to Taitokerau Forests Limited Not required
National Provident Fund Schemes - Liability Under Crown Guarantee Not required
New Zealand House - London Annual report of the New Zealand Government Property Corporation
Taitokerau Forests Limited Grant Not required
Unclaimed Money Not required
Unclaimed Trust Money 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 and Objectives - Part 6.1 Departmental Capital Expenditure - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Internally funded capital projects integral to the efficient and effective delivery of the Treasury's outputs. Treasury - Capital Expenditure PLA (M31)

The Treasury - Capital Expenditure PLA (M31)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - The Treasury Capital Expenditure PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 889 889 851
Intangibles 2 2 524
Other - - -

Total Appropriation

891 891 1,375
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 889 889 851
Intangibles 2 2 524
Other - - -

Total Appropriation

891 891 1,375

Reasons for Change in Appropriation

The 2010/11 budgeted capital expenditure is more than 2009/10 largely owing to the timing of routine replacement and upgrade of the Treasury's information technology.

Expected Results

The budgeted capital expenditure for the 2010/11 financial year is mainly for the routine replacement and upgrade of the department's information technology. The forecast capital expenditure will support the efficient delivery of services as set out in the Treasury's Statement of Intent.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
New Zealand's subscription to the General capital increase at the Asian Development Bank Asian Development Bank
To compensate Landcorp for retaining protected land. Landcorp Protected Land Agreement
To provide capital for the New Zealand Productivity Commission New Zealand Productivity Commission
To provide debt funding to Taitokerau Forests Limited for forest management and development. Taitokerau Forests

Asian Development Bank PLA (M31)

Scope of Appropriation

This appropriation is limited to capital expenditure by New Zealand as a member of the Asian Development Bank Agreement, authorised by section 3 of the International Finance Agreements Amendment Act 1966.

Capital Expenditure

Capital Expenditure - Asian Development Bank PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 71,000

Reasons for Change in Appropriation

Cabinet has approved funding for New Zealand's subscription to the General Capital Increase at the Asian Development Bank in 2010/11.

Expected Results

Expected Results - Asian Development Bank PLA (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Payment of subscription has been made by due date N/A N/A Achieved

 

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Asian Development Bank PLA (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Asian Development Bank General Capital Increase 2010/11 - 71,000 - - -

Landcorp Protected Land Agreement (M31)#

Scope of Appropriation

Purchase (including by reinvesting cash dividends) of redeemable preference shares in Landcorp under the Protected Land Agreement.

Capital Expenditure

Capital Expenditure - Landcorp Protected Land Agreement (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,000 10,000 17,347

Reasons for Change in Appropriation

Under the terms of the Protected Land Agreement, an initial payment of $52.200 million was paid in cash to Landcorp in 2007/08. The balance of the compensation is through the reinvestment of dividends spread over several years finalising in 2011/12.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Landcorp Protected Land Agreement (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Protected Land Agreement with Landcorp. 2007/08 11,000 20,000 9,347 - -

New Zealand Productivity Commission Capital (M31)#

Scope of Appropriation

This appropriation is limited to providing a capital injection to the New Zealand Productivity Commission.

Capital Expenditure

Capital Expenditure - New Zealand Productivity Commission Capital (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 500

Reasons for Change in Appropriation

This is the first year of operation of the New Zealand Productivity Commission. The appropriations form part of its establishment in 2010/11.

Expected Results

Expected Results - New Zealand Productivity Commission Capital (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The New Zealand Productivity Commission is established by 1 April 2011 in accordance with its enabling legislation. N/A N/A Achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - New Zealand Productivity Commission Capital (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
New Zealand Productivity Commission 2010/11 - 500 - - -

Taitokerau Forests (M31)#

Scope of Appropriation

This appropriation is limited to the provision of loans to Taitokerau Forests Ltd for forest management and development.

Capital Expenditure

Capital Expenditure - Taitokerau Forests (M31) - Finance
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,100 3,100 800

Reasons for Change in Appropriation

Loans are made in accordance with the loan agreement.

Expected Results

Expected Results - Taitokerau Forests (M31) - Finance
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Loans will be provided in accordance with the terms of the loan agreement. N/A Achieved Achieved

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Taitokerau Forests (M31) - Finance
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Renegotiation of Crown loan to Taitokerau Forests Limited. 2008/09 1,400 800 800 800 -

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
Asian Development Bank Not required
Landcorp Protected Land Agreement Annual report of Landcorp Farming Limited
New Zealand Productivity Commission Annual report of the New Zealand Productivity Commission
Taitokerau Forests Not required

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 Ministerial Services#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister Responsible for Ministerial Services (M47)

ADMINISTERING DEPARTMENT: Department of Internal Affairs

MINISTER RESPONSIBLE FOR DEPARTMENT OF INTERNAL AFFAIRS: Minister of Internal Affairs

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister Responsible for Ministerial Services is responsible for appropriations in the Vote for the 2010/11 financial year covering the following:

Departmental Appropriations

  • A total of $27.260 million (69% of total departmental appropriations in this Vote) for support services to Members of the Executive including office administration, accounting, personnel, information and communication technology, facilities management, media and advisory services, and provision of residential accommodation services.
  • A total of $7.925 million (20% of total departmental appropriations in this Vote) for the provision of chauffeur-driven vehicle services for Members of the Executive, the Leader of the Opposition, former Governors-General and Prime Ministers and their spouses, the judiciary, distinguished visitors, and the provision of self-drive vehicles for Members of the Executive.
  • A total of $4.430 million (11% of total departmental appropriations in this Vote) for managing guests of Government visits, receptions at international airports for the Governor-General, Members of the Executive and guests of Government; State and ministerial functions, commemorative events and national anniversaries.

Non-Departmental Appropriations

  • A total of $475,000 for annuities to former Governors-General, Prime Ministers and their surviving spouses.
  • A total of $20.300 million for Executive Council and Members of the Executive's salaries and allowances, Governors-General pension arrangements, travel expenses for Members of the Executive and former Governors-General and Prime Ministers.
  • A total of $137,000 for depreciation on official residences for Members of the Executive.

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

Part 1.2 - High-Level Objectives of the Vote#

Vote Ministerial Services provides the Government with advice and services to ensure that the Executive Government is well supported.

Contribution of Appropriations to Government Priorities and Outcomes

Contribution of Appropriations to Government Priorities and Outcomes - Part 1.2 HighLevel Objectives of the Vote - Ministerial Services
Appropriations Government Priorities Government Outcomes
Annuities to Former Governors-General, Prime Ministers and Their Surviving Spouses
Depreciation
Executive Council and Members of the Executive's Salaries and Allowances
Governors'-General Pension Arrangements
Members of the Executive's Internal and External Travel
Support Services to Members of the Executive
Travel for Former Governors-General and Prime Ministers
VIP Transport
Visits and Official Events Coordination
Better public services Improved State sector performance and better service experience

Summary of Financial Activity

Summary of Financial Activity - Ministerial Services
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 32,675 36,408 39,694 41,719 39,768 39,106 39,615 - 39,615 39,640 39,640 39,640
Benefits and Other Unrequited Expenses 302 6,211 407 657 537 520 N/A 475 475 475 475 475
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 15,530 21,727 18,397 19,812 20,175 19,895 - 20,437 20,437 20,437 20,437 20,437
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

48,507 64,346 58,498 62,188 60,480 59,521 39,615 20,912 60,527 60,552 60,552 60,552

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 10 10 10 4 - - N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

10 10 10 4 - - N/A - - - - -

Analysis of Significant Trends

Total Vote: All Appropriations

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

Vote trends in actual expenses and capital expenditure by appropriation type
The Vote trends in actual expenses and capital expenditure by appropriation type chart is a Line chart. Sourced from Department of Internal Affairs. The X axis shows Financial Year; The Y axis shows millions of dollars. There are 10 series: Departmental Output Expenses covering the 2005 2006  Actual to 2013 2014  Estimated Financial Year, Borrowing Expenses covering the 2005 2006  Actual to 2005 2006  Actual Financial Year,  covering the 2005 2006  Actual to 2005 2006  Actual Financial Year, Departmental Capital Expenditure covering the 2005 2006  Actual to 2005 2006  Actual Financial Year,  covering the 2005 2006  Actual to 2005 2006  Actual Financial Year,  covering the 2005 2006  Actual to 2005 2006  Actual Financial Year, Other Expenses covering the 2005 2006  Actual to 2013 2014  Estimated Financial Year, Non-Departmental Output Expenses covering the 2005 2006  Actual to 2005 2006  Actual Financial Year, Non-Departmental Capital Expenditure covering the 2005 2006  Actual to 2005 2006  Actual Financial Year, and Benefits and Other Unrequited Expenses covering the 2006 2007  Actual to 2006 2007  Actual Financial Year. The values for the Departmental Output Expenses series are: 2005 2006  Actual 32 million, 2006 2007  Actual 36 million, 2007 2008  Actual 39 million, 2008 2009  Actual 41 million, 2009 2010  Est. Actual 39 million, 2010 2011  Budget 39 million, 2011 2012  Estimated 39 million, 2012 2013  Estimated 39 million, 2013 2014  Estimated 39 million. The values for the Borrowing Expenses series are: 2005 2006  Actual 0 million. The values for the  series are: 2005 2006  Actual 0 million. The values for the Departmental Capital Expenditure series are: 2005 2006  Actual 0 million. The values for the  series are: 2005 2006  Actual 0 million. The values for the  series are: 2005 2006  Actual 0 million. The values for the Other Expenses series are: 2005 2006  Actual 15 million, 2006 2007  Actual 21 million, 2007 2008  Actual 18 million, 2008 2009  Actual 19 million, 2009 2010  Est. Actual 19 million, 2010 2011  Budget 20 million, 2011 2012  Estimated 20 million, 2012 2013  Estimated 20 million, 2013 2014  Estimated 20 million. The values for the Non-Departmental Output Expenses series are: 2005 2006  Actual 0 million. The values for the Non-Departmental Capital Expenditure series are: 2005 2006  Actual 0 million. The values for the Benefits and Other Unrequited Expenses series are: 2006 2007  Actual 6 million.
Source: Department of Internal Affairs

Departmental Output Expenses

The baseline increased in 2006/07 to provide for increased Ministerial travel and additional Ministerial Services staff to support the Executive. Additional funding was provided in 2007/08 for guests of government and Sir Edmund Hillary's funeral and memorial service costs. In 2008/09 and outyears additional funding was provided to support the Executive and for the Visits and Ceremonials Office. The level of additional funding to support the Executive was higher in 2008/09 due to the change of Executive.

Benefits and Other Unrequited Expenses

In 2006/07, one-off funding of $5.850 million was provided for a technical adjustment to recognise the actuarial valuation for Annuities to Former Governors-General, Prime Ministers and their Surviving Spouses.

Non-Departmental Other Expenses

In 2006/07, expenditure increased to provide for a one-off technical adjustment to recognise the actuarial valuation of travel for former Governors-General and Prime Ministers. Additional funding was provided in 2008/09 and outyears for travel for Members of the Executive.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Ministerial Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Efficient, effective and coordinated government Support Services to Members of the Executive
VIP Transport
Visits and Official Events Coordination

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

Support Services to Members of the Executive (M47)

Scope of Appropriation

This appropriation is limited to providing support services for Members of the Executive including office administration; accounting, personnel, information and communication technology; facilities management; media and other advisory services; and provision of residential accommodation services.

Expenses and Revenue

Expenses and Revenue - Support Services to Members of the Executive (M47) - Ministerial Services
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 27,111 27,072 27,260
Revenue from Crown 26,713 26,713 26,879
Revenue from Other 399 474 382

Output Performance Measures and Standards

Output Performance Measures and Standards - Support Services to Members of the Executive (M47) - Ministerial Services
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The average rating by Members of the Executive responding to the annual survey of their satisfaction with the support services provided to them on a scale of 1 to 5 is no less than: New measure New measure 3.5 out of 5
The Minister Responsible for Ministerial Services is requested to indicate his/her satisfaction with the level of administration of support services provided to the Executive Satisfied or better
(see Note 1)
Satisfied or better
(see Note 1)
Satisfied or better
(see Note 1)

Note 1 - Ratings used in all Ministerial Satisfaction Surveys are: Very Good, Good, Satisfied, Poor, Very Poor.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Support Services to Members of the Executive (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Sale of Ministerial Property 2009/10 (86) (86) (86) (86) (86)
Ministerial Servicing Cost Pressures 2008/09 1,025 835 835 835 835

Previous Government

           
Support services to members of the Executive 2005/06 2,240 2,240 2,240 2,240 2,240
Departmental Personnel Capability 2005/06 2,355 2,355 2,355 2,355 2,355

VIP Transport (M47)#

Scope of Appropriation

The provision of chauffeur-driven vehicle services for Members of the Executive, the Leader of the Opposition, former Prime Ministers and their spouses, former Governors-General and their spouses, the judiciary, distinguished visitors; and self-drive vehicles for Members of the Executive.

Expenses and Revenue

Expenses and Revenue - VIP Transport (M47) - Ministerial Services
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,921 7,399 7,925
Revenue from Crown - - -
Revenue from Other 7,921 7,501 7,925

Output Performance Measures and Standards

Output Performance Measures and Standards - VIP Transport (M47) - Ministerial Services
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The average rating of Members of the Executive responding to the annual survey of their satisfaction with the transport services provided to them at 3 or above on a scale of 1 to 5 is no less than: New measure New measure 3.5 out of 5
The fuel efficiency recorded for chauffeur-driven vehicles as an annual average is no less than: New measure New measure 11 litres per 100km
Percentage of chauffeur-driven services provision failures is no more than: New measure New measure 5% of jobs booked

Current and Past Policy Initiatives

Current and Past Policy Initiatives - VIP Transport (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Ministerial travel capacity increase 2006/07 800 800 800 800 800
Departmental Personnel Capability 2005/06 26 26 26 26 26

Visits and Official Events Coordination (M47)#

Scope of Appropriation

The provision of services to manage programmes for visiting guests of Government; receptions at international airports for the Governor-General, Members of the Executive and guests of Government; State and ministerial functions; commemorative events; and national anniversaries.

Expenses and Revenue

Expenses and Revenue - Visits and Official Events Coordination (M47) - Ministerial Services
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,736 4,635 4,430
Revenue from Crown 4,698 4,698 4,388
Revenue from Other 38 38 42

Output Performance Measures and Standards

Output Performance Measures and Standards - Visits and Official Events Coordination (M47) - Ministerial Services
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of visit programme content and logistics arranged to reflect visit objectives is: 100% 100% 100%
Percentage of Ministers who rate their satisfaction with the quality of arrangements for Ministerial and State functions at 3 or above on a scale of 1 to 5 is no less than: (Only Ministers sponsoring Ministerial and State Functions are surveyed.) 90% 90% 90%
Percentage of Members of the Executive who rate their satisfaction with the coordination and management of official events at 3 or above on a scale of 1 to 5 is no less than: (Only Ministers with responsibility for hosting events are surveyed.) 90% 90% 90%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Visits and Official Events Coordination (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Visits and Ceremonials (travel and accommodation efficiencies) 2009/10 (50) (50) (50) (50) (50)
Ministerial Servicing Cost Pressures 2008/09 1,000 1,000 1,000 1,000 1,000

Previous Government

           
Extended Guests of Government programme 2005/06 400 400 400 400 400
Visits and Ceremonial Office Capability 2005/06 460 460 460 460 460
Departmental Personnel Capability 2005/06 148 148 148 148 148

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 and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - Ministerial Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Efficient, effective and coordinated government Annuities to Former Governors-General, Prime Ministers and their Surviving Spouses

Annuities to Former Governors-General, Prime Ministers and their Surviving Spouses PLA (M47)

Scope of Appropriation

This appropriation is limited to annuities to former Governors-General, Prime Ministers and their surviving spouses incurred pursuant to the Civil List Act 1979, Remuneration Authority Act 1977, the current Civil List (Annuities) Determination and the current Parliamentary Annuities Determination.

Expenses

Expenses - Annuities to Former GovernorsGeneral, Prime Ministers and their Surviving Spouses PLA (M47) - Ministerial Services
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 537 520 475

Reasons for Change in Appropriation

The decrease in this appropriation is due to the recalculation of the actuarial valuation for annuities to former Governors-General, Prime Ministers and their surviving spouses in 2009/10.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Annuities to Former GovernorsGeneral, Prime Ministers and their Surviving Spouses PLA (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979, Remuneration Authority Act 1977, the current Civil List (Annuities) Determination and the current Parliamentary Annuities Determination That payments are made within the boundaries of the Acts and Determinations

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Ministerial Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Efficient, effective and coordinated government Depreciation
Executive Council and Members of the Executive's Salaries and Allowances
Governors'-General Pension Arrangements
Members of the Executive's Internal and External Travel
Travel for Former Governors-General and Prime Ministers

Depreciation (M47)

Scope of Appropriation

Depreciation on official residences for Members of the Executive.

Expenses

Expenses - Depreciation (M47) - Ministerial Services
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 137 131 137

Executive Council and Members of the Executive's Salaries and Allowances PLA (M47)#

Scope of Appropriation

This appropriation is limited to payments for civil purposes to the Executive Council and Members of the Executive as stated in Section 16 of the Civil List Act 1979 and Sections 1 and 2 of the current Parliamentary Salaries and Allowances Determination.

Expenses

Expenses - Executive Council and Members of the Executive's Salaries and Allowances PLA (M47) - Ministerial Services
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,920 7,794 8,320

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Executive Council and Members of the Executive's Salaries and Allowances PLA (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979 Section 16
The current Parliamentary Salaries and Allowances Determination Schedule 1 of the Determination specifies the salary amount payable under the Act
Schedule 2 of the Determination specifies the amount of the allowance payable under the Act

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Executive Council and Members of the Executive's Salaries and Allowances PLA (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Previous Government

           
Parliamentary Salaries and Allowances Determination 2008 2008/09 510 510 510 510 510
Parliamentary Salaries and Allowances Determination 2005 2005/06 780 780 780 780 780

Governors'-General Pension Arrangements PLA (M47)#

Scope of Appropriation

This appropriation is limited to payments for civil purposes, Governors'-General pension arrangements as stated in Section 41(a) of the Civil List Act 1979 and Section 4 and 5 of the current Civil List (Annuities) Determination.

Expenses

Expenses - Governors'General Pension Arrangements PLA (M47) - Ministerial Services
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 20 15 20

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Governors'General Pension Arrangements PLA (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979 Section 41 (a) specifies that annuities are payable at a rate determined from time to time by the Remuneration Authority
The current Civil List (Annuities) Determination Section 4 of the Determination specifies the annuity for former Governors-General
Section 5 of the Determination specifies the annuity for surviving spouses or partners of former Governors-General

Members of the Executive's Internal and External Travel (M47)#

Scope of Appropriation

Payments for civil purposes for Members of the Executive's internal and external travel, pursuant to section 20A of the Civil List Act 1979.

Expenses

Expenses - Members of the Executive's Internal and External Travel (M47) - Ministerial Services
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,790 11,740 11,440

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Members of the Executive's Internal and External Travel (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979 Section 20A (3) of the Act requires the Minister Responsible for Ministerial Services to determine in respect of Members of the Executive, additional or alternative services in respect of Executive travel, accommodation, attendance and communications
Executive Travel, Accommodation, Attendance and Communications Services Determination This document states that the detailed requirements in respect of section 20A of the Act are contained in the document signed by the Minister Responsible for Ministerial Services
Travel, Accommodation, Attendance and Communication Services Available to Members of the Executive signed by the Minister Responsible for Ministerial Services Part 2 of the document specifies travel entitlements

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Members of the Executive's Internal and External Travel (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000

Current Government

           
Ministerial Servicing Cost Pressures 2008/09 1,000 1,000 1,000 1,000 1,000

Previous Government

           
Ministerial travel capacity increase 2006/07 1,647 1,647 1,647 1,647 1,647

Travel for Former Governors-General and Prime Ministers (M47)#

Scope of Appropriation

Payments for civil purposes, pursuant to section 25 of the Civil List Act 1979.

Expenses

Expenses - Travel for Former GovernorsGeneral and Prime Ministers (M47) - Ministerial Services
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 308 215 520

Reasons for Change in Appropriation

The increase in this appropriation is due to the recalculation of the actuarial valuation for travel for former Governors-General and Prime Ministers in 2009/10.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Travel for Former GovernorsGeneral and Prime Ministers (M47) - Ministerial Services
Reference Conditions
Civil List Act 1979 Section 25 of the Act states that the appropriation by Parliament of money for the purpose of providing benefits of a specified kind for the Governor-General or a former Governor-General or members of their families shall be sufficient authority for the grant of such benefits of privileges

Performance Information for Appropriations Vote Office of the Clerk#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Speaker of the House of Representatives (M78)

ADMINISTERING DEPARTMENT: Office of the Clerk of the House of Representatives

MINISTER RESPONSIBLE FOR OFFICE OF THE CLERK OF THE HOUSE OF REPRESENTATIVES: Speaker of the House of Representatives

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Speaker of the House of Representatives is responsible for appropriations in the Vote for the 2010/11 financial year covering the following:

  • A total of just over $17 million to assist the Clerk of the House to provide specialist advice on parliamentary procedure and parliamentary law, and administrative services to the Speaker and members of the House of Representatives in the performance of their duties as members of the House.
  • A total of just over $1 million to assist the Clerk of the House to provide advice on inter-parliamentary relations to the Speaker and members, establish an annual programme of incoming and outgoing visits, develop and implement individual visit programmes, assist in building the capacity of the Pacific Island parliaments, support the New Zealand Parliament's contribution on global issues at international parliamentary organisations and host international parliamentary conferences.

The Clerk of the House of Representatives is the principal permanent officer of the House and carries out the functions required under section 3 of the Clerk of the House of Representatives Act 1988.

The functions of the Clerk of the House of Representatives shall be:

(a) to note all proceedings of the House of Representatives and of any committee of the House

(b) to carry out such duties and exercise such powers as may be conferred on the Clerk of the House of Representatives by law or by the Standing Orders and practice of the House of Representatives

(c) to act as the principal officer of the Office of the Clerk of the House of Representatives and, in that capacity, to manage that office efficiently, effectively, and economically

(d) to ensure that the members of the staff of the Office of the Clerk of the House of Representatives carry out their duties (including duties imposed on them by law or by the Standing Orders or practice of the House of Representatives) and maintain:

(i) proper standards of integrity and conduct, and

(ii) concern for the public interest

(e) to be responsible, under the direction of the Speaker of the House of Representatives, for the official report of the proceedings of the House of Representatives and its committees.

The Office of the Clerk, established under section 14 of the Act, assists the Clerk in carrying out these functions.

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

The outcome of the Office of the Clerk is a legislature in which members of Parliament are able to discharge their constitutional duties in respect of the consideration of legislation and other parliamentary business, and interested parties are informed and able to participate.

Summary of Financial Activity

Summary of Financial Activity - Office of the Clerk
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 13,196 14,455 17,172 19,156 19,131 19,131 18,222 - 18,222 18,238 18,238 18,238
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 669 482 687 1,806 1,890 1,890 1,325 - 1,325 137 217 512
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

13,865 14,937 17,859 20,962 21,021 21,021 19,547 - 19,547 18,375 18,455 18,750

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 - - - - -

Analysis of Significant Trends

Operating expenses increased over the years 2005/06 to 2010/11 to fund a number of functions of the Office of the Clerk. The major ongoing items are:

  • extensions to the AM radio broadcasting network and operating costs
  • set-up and ongoing costs of in-house legal advisory services
  • improvements to the publishing systems for parliamentary publications
  • enhancements to the Office of the Clerk information technology
  • the set-up and ongoing operating costs of the televising of Parliament
  • implementation of the e-Committee system to all select committees.

There was a $2.400 million one-off appropriation in 2007/08 to fund the Asia-Pacific Parliamentary Forum meeting in Auckland in January 2008.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Office of the Clerk
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective: The New Zealand Parliament's obligations as a member of the International parliamentary community are fulfilled.
Impact: The capacity of the New Zealand Parliament is enhanced by member's engagement with other parliaments and inter-parliamentary organisations.
Inter-Parliamentary Relations.
Objective: A well supported legislature that meets its constitutional requirements for the consideration of legislation, the scrutiny of executive government, and other parliamentary business.
Impact:
  • Parliament remains relevant because it has the capacity to adapt its procedures.
  • Government policy outcomes are enhanced by effective parliamentary scrutiny.
  • Public respect for the institution of Parliament grows because the public feels it is informed about what Parliament is doing and is able to participate.
Secretariat services for the House of Representatives.

For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations please see the Statement of Intent for Office of the Clerk of the House of Representatives.

Inter-Parliamentary Relations (M78)

Scope of Appropriation

This appropriation is limited to services to improve relations between the New Zealand Parliament and other parliaments, including providing advice on inter-parliamentary relations to the Speaker and members, establishing and implementing an annual programme of incoming and outgoing visits, developing and implementing individual visit programmes, assisting to build the capacity of the Pacific Island parliaments, supporting (including through travel to meetings overseas) the New Zealand Parliament's contribution on global issues at international parliamentary organisations and hosting international parliamentary conferences.

Expenses and Revenue

Expenses and Revenue - InterParliamentary Relations (M78) - Office of the Clerk
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,202 1,202 1,006
Revenue from Crown 1,151 1,151 1,000
Revenue from Other 51 51 6

Reasons for Change in Appropriation

The decrease in this appropriation is due to termination of funding from expenses carried forward into the 2009/10 year.

Output Performance Measures and Standards

Output Performance Measures and Standards - InterParliamentary Relations (M78) - Office of the Clerk
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quality of advice to Speaker and members on issues relating to inter-parliamentary relations 100% 100% Accurate, informed, timely and politically sustainable
Timeliness and quality of development and management of annual visit programme and completed within budget 100% 100% Meets the expectations of the Speaker
Quality of advice and services to individual visits and timeliness of reporting 100% 100% Meets the satisfaction of the Speaker, members and select committees of both incoming and outgoing delegations
Quality of advice and services supporting engagement with Pacific parliaments 100% 100% Meets the satisfaction of the Commonwealth Parliamentary Association Pacific Branches and Regional Representatives
Quality of advice and services supporting engagement with inter-parliamentary organisations 100% 100% Meets the satisfaction of the Speaker, the permanent delegates to the CPA and IPU and members
Quality of secretariat services to local branches of inter-parliamentary agencies 100% 100% Meets the satisfaction of the New Zealand Commonwealth Parliamentary Association Branch Inter Parliamentary Union group Executive Committee.
Quality of planning, advice and services supporting hosting of parliamentary conferences 100% 100% Meets the satisfaction of the Speaker, members and delegates and completed within approved budget

Secretariat Services for the House of Representatives (M78)#

Scope of Appropriation

This appropriation is limited to the provision to the House of Representatives of professional advice and services designed to assist the House in the fulfilment of its constitutional functions, and enabling participation in, and understanding of, parliamentary proceedings.

Expenses and Revenue

Expenses and Revenue - Secretariat Services for the House of Representatives (M78) - Office of the Clerk
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,929 17,929 17,216
Revenue from Crown 17,693 17,693 16,970
Revenue from Other 236 236 246

Reasons for Change in Appropriation

The decrease in this appropriation is due to termination of funding from expenses carried forward into the 2009/10 year.

Output Performance Measures and Standards

Output Performance Measures and Standards - Secretariat Services for the House of Representatives (M78) - Office of the Clerk
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Services to the House

     
Timeliness, quality, and political sustainability of procedural and operational advice to presiding officers and members 100% 100% Accords with Standing Orders, Speakers' rulings, established practice, and to the satisfaction of the Speaker
Timeliness and quality of servicing of sittings of the House 100% 100% Accords with Standing Orders, Speakers' rulings, established practice, and to the satisfaction of the Speaker and members
Timeliness and accuracy of recording and publishing of decisions and the business transacted by the House 100% 100% Accords with Standing Orders, Speakers' rulings, established practice and to the satisfaction of the Speaker
Quality of maintenance of House records 100% 100% Maintained in accordance with standards set by statute and Standing Orders
Timeliness and quality of vetting questions for oral and written answer 100% 100% Accords with Standing Orders, Speakers' rulings, established practice and to the satisfaction of the Speaker
Timeliness and accuracy of certification of bills, and their preparation for Royal assent 100% 100% Complies with Standing Orders, reflects the decisions of the House and committees, processed without delay and in the order passed by the House

Services to Committees

     
Timeliness and quality of procedural and operational advice to committee chairpersons 100% 100% Accords with Standing Orders, Speakers' rulings established practice, and to the satisfaction of committee chairpersons
Timeliness and quality of servicing of committee sittings 100% 100% Accords with Standing Orders, Speakers' rulings established practice, and to the satisfaction of committee chairpersons and members
Timeliness and accuracy of recording decisions of committees New standard New standard Accords with Standing Orders, Speakers' rulings established practice, and to the satisfaction of committee chairpersons and members
Quality of maintenance of committee records 100% 100% Maintained in accordance with standards set by statute and Standing Orders
Timeliness and quality of drafting and publishing of committee reports 100% 100% Drafted and published in accordance with committee and House timetables, accurately reflect the views of the committee, and to the satisfaction of the committee chairpersons and members
Quality of brokering sources of subject advice to committees New standard New standard Contracted services meet the requirements of the contract and all advice is provided to the satisfaction of committee chairpersons and members

Reporting Services

     
Timeliness, quality and readability of Hansard 100% 100% Record of debate delivered to deadlines, in a readable state and in accordance with Standing Orders, Speakers' rulings and established practice
Availability and quality of Te Reo Maori interpretation N/A 100% Interpreter available for the House at all sitting times, and to select committees as requested, with service delivered in accordance with Standing Orders, Speakers' rulings, established practice and professional standards
Availability, timeliness and accuracy of Te Reo Maori translation services N/A 100% Translation service available on request, with service delivered in accordance with Standing Orders, Speakers' rulings, established practice and professional standards
Availability of live radio broadcasting and television coverage of the House of Representatives 100% 100% All sittings of the House of Representatives will be broadcast and filmed live in accordance with Standing Orders, Speakers' rulings, established practice, and professional standards
Provision of live and replay TV broadcast on the Parliament TV channel No gaps in coverage No gaps in coverage Contracted service meets goals of Parliament TV initiative, with uninterrupted coverage of all sittings of the House of Representatives
Availability of clean picture and audio feeds to television broadcasters and web streaming No loss of feed reported No loss of feed reported No loss of feed reported
Production of information programmes about the proceedings of Parliament Contractual arrangements for programme television are adhered to Contractual arrangements for programme television are adhered to Contracted services meet goals of information programming initiative

Specialist procedural and legal services

     
Timeliness, quality, and political sustainability of specialist and high level procedural and legal advice 100% 100% Accords with Standing Orders and Speakers' rulings, is politically sustainable and to the satisfaction of the Speaker
Timeliness, quality, and political sustainability of parliamentary policy development and advice N/A 100% Accurate, informed, timely and politically sustainable
Timeliness, accuracy and appropriateness of parliamentary education services 100% 100% Accessible, accurate, useable and up-to-date
Timeliness and accuracy of members' legislative drafting service N/A 100% Accords with Standing Orders, Speakers' rulings, PCO drafting standards, is legally correct, and reflects the intention of the originator
Timeliness and quality of administration of statutory functions under the Citizens Initiated Referenda Act 1993 and the Electoral Act 1993 100% 100% Complies with statutory requirements
Timeliness and quality of administration of the Register of Pecuniary Interests of Members of Parliament N/A 100% Accords with Standing Orders, Speakers' rulings and established practice

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Secretariat Services for the House of Representatives (M78) - Office of the Clerk
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
eCommittee system 2006/07 1,072 1,072 1,072 1,072 1,072
Televising of Parliament 2006/07 1,752 1,752 1,752 1,752 1,752

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.1 Departmental Capital Expenditure - Office of the Clerk
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
To maintain and upgrade capability through routine replacement of the Office of the Clerk's information technology. Office of the Clerk - Capital Expenditure.

Office of the Clerk of the House of Representatives - Capital Expenditure PLA (M78)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Office of the Clerk of the House of Representatives Capital Expenditure PLA (M78) - Office of the Clerk
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 496 496 565
Intangibles 1,394 1,394 760
Other - - -

Total Appropriation

1,890 1,890 1,325
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 496 496 565
Intangibles 1,394 1,394 760
Other - - -

Total Appropriation

1,890 1,890 1,325

Reasons for Change in Appropriation

There is no change to the capital contribution. The change to the capital expenditure reflects the changes to internally funded capital expenditure plans for computer hardware and software to support business processes.

Performance Information for Appropriations Vote Ombudsmen#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Speaker of the House of Representatives (M78)

ADMINISTERING DEPARTMENT: Office of the Ombudsmen

MINISTER RESPONSIBLE FOR OFFICE OF THE OMBUDSMEN: Speaker of the House of Representatives

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Speaker is responsible for appropriations in Vote Ombudsmen in 2010/11 totalling $8.691 million (GST exclusive). This comprises:

  • $7.957 million annual appropriation for the Office of the Ombudsmen
  • $611,000 permanent legislative authority for Ombudsmen remuneration, and
  • $123,000 permanent legislative authority for capital expenditure.

The whole of the Vote is committed to the investigation and resolution of complaints about government agencies at central, regional and local levels.

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

Part 1.2 - High-Level Objectives of the Vote#

Objectives of the Vote

The appropriations in Vote Ombudsmen help fulfil Parliament's intent through the Ombudsmen Act 1975, the Official Information Act 1982, the Local Government Official Information and Meetings Act 1987, the Crimes of Torture Act 1989, the Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 and the Protected Disclosures Act 2000 and make an important contribution to the maintenance and enhancement of "open" government within New Zealand. Specifically, the Ombudsmen contribute to strengthening the New Zealand system of democracy through improved public administration and access to official information, and enhanced public confidence in government administration. The dissemination of information assists the public in understanding and participating in government administration.

The appropriations will purchase the independent investigation of complaints from the public:

  • under the Ombudsmen Act 1975 arising from any act, omission, decision or recommendation relating to a matter of administration and affecting any person or body of persons in his/her/its personal capacity by any government agencies at central, regional or local level
  • under the Official Information Act 1982 and the Local Government Official Information and Meetings Act 1987 about decisions on requests for access to official information held by any Minister of the Crown, or any government agencies at central, regional or local level
  • where justified, the recommendation of appropriate remedial action to resolve those complaints
  • investigations either on a complaint made to an Ombudsman by any person or body of persons, or in the case of investigations under the Ombudsmen Act 1975, by an Ombudsman of his/her own motion
  • the maintenance of the Ombudsmen's extended involvement in the investigation of complaints from prisoners in penal institutions including selected serious incidents and the monitoring of death in custody investigations conducted by Inspectors of Corrections.

Under the Crimes of Torture Act 1989:

  • fulfilling the requirements as "National Preventive Mechanism" for prisons, mental health, immigration detention facilities and residences established under section 364 of the Children, Young Persons and Their Families Act 1989, and
  • reporting annually to Parliament in respect of inspections undertaken under the Act.

Under the Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008

  • monitoring and reporting on New Zealand's implementation of the United Nations Convention on the Rights of Persons with Disabilities.

Under the Protected Disclosures Act 2000:

  • to provide an employee who has made, or is considering making, a protected disclosure, information and guidance on the application of the legislation, and
  • where a protected disclosure is made to an Ombudsman in their capacity as an "appropriate authority", to take such action on the matter as prescribed in the Act.

For further information on the intended impacts, outcomes and objectives of the Office of the Ombudsmen please see the Office's 2010-2013 Statement of Intent.

Summary of Financial Activity

Summary of Financial Activity - Ombudsmen
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 5,511 5,802 6,148 6,854 7,407 7,407 7,957 - 7,957 7,957 7,637 7,407
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - 727 621 611 611 611 - 611 611 611 611
Capital Expenditure - - 214 360 123 123 123 - 123 123 123 123
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

5,511 5,802 7,089 7,835 8,141 8,141 8,691 - 8,691 8,691 8,371 8,141

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue - - - - - - N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

- - - - - - N/A - - - - -

New Policy Initiatives

Budget Policy Intiatives - Ombudsmen
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 Investigation and Resolution of Complaints about Government Administration - 230 230 230 -

Analysis of Significant Trends

The bulk of the movement in departmental appropriations in Vote Ombudsmen which are detailed in the Summary of Financial Activity table above, are largely driven by movements in departmental output expenses required to maintain an efficient, effective and professional Ombudsmen function. More recent movements include new work responsibilities given the Ombudsmen. Details of significant movements within each appropriation are shown below.

Departmental Output Expenses

The baseline movements amounting to approximately $2.500 million during the period detailed in the Summary of Financial Activity are due to:

  • the 2005/06 Estimates provided the balance of funding approved in 2004/05 for staff remuneration. Parliament also approved a budgetary provision for two additional staff to provide training and policy advice which underpins a move in the office's strategic direction towards a more pro-active positioning. In addition, funding was provided to strengthen the office "call centre" to enable its implementation of a more efficient and effective process for dealing with enquiries and more simple complaints. Funding was also provided to continue the office communications strategy that aims to increase awareness within the various ethnic communities that now make up the New Zealand population of the role fulfilled by the Ombudsmen
  • the 2006/07 Estimates allow for the full year cost of additional staff approved in the previous year
  • a Supplementary Estimates increase was approved for 2006/07 to meet part year office accommodation rental increases in Wellington and Auckland and preliminary costs associated with the office being host to the 2007 Information Commissioners International Conference
  • the 2007/08 Estimates provide 'one-off' increases to the office baseline to meet costs associated with hosting the 2007 Information Commissioners International Conference and recruitment costs for a 3rd permanent Ombudsman. Additional funding has been provided to allow staff remuneration to more closely reflect rates paid by other government sector employers. The funding was provided half in the 2007/08 year and half in the 2008/09 year. Funding has also been provided for costs associated with the Ombudsmen being designated the "National Preventive Mechanism" for prisons, mental health, immigration detention facilities and residences established under section 364 of the Children, Young Persons and Their Families Act 1989, under the Crimes of Torture Act 1989 and an additional investigating officer. Further funding has been provided for the full year cost of increased office accommodation rentals at Auckland and Wellington
  • the 2007/08 Supplementary Estimates provide 'one-off' funding for costs associated with a review of the Criminal Justice Sector, recruitment costs for a third Ombudsman, technical support to the Ombudsmen, NZAID funding to Pacific nation attendees at the 2007 Information Commissioners International Conference. Funding has also been provided to support the Ombudsmen's enhanced role within prisons
  • budget increases were approved for 2008/09 to meet costs associated with the Ombudsmen being a "National Preventive Mechanism" under the Crimes of Torture Act 1989, strengthening policy, strategic planning, quality review and training capabilities and, further enhancing the Ombudsmen role in prisons to include the investigation of selected other serious incidents and monitoring of investigations of deaths in custody undertaken by the Inspectors of Corrections. Funding has also been provided for an office accommodation rental increase at Christchurch
  • Parliament approved as part of the 2010/11 estimates a baseline increase to meet costs associated with the Ombudsmen's new responsibilities under the Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 that gives effect to the United Nations Convention on the Rights of Persons with Disabilities. A further increase was approved for two years to address an increase in compliants received during the current economic downturn.

Departmental Other Expenses

Movements in Departmental Other Expenses are wholly attributable to determinations issued by the Remuneration Authority relating to Ombudsmen remuneration and to decisions by Parliament regarding the number of Ombudsmen appointed at any one time. There are presently two permanent Ombudsmen.

Capital Expenditure

Movements in the provision for capital expenditure follow:

  • the 2007/08 Estimates provided a capital contribution of $73,000 to Vote Ombudsmen for accommodation alteration costs associated with the Ombudsmen being designated as a National Preventive Mechanism under the Crimes of Torture Act 1989
  • an additional capital contribution of $238,000 was approved as part of the 2007/08 Supplementary Estimates to meet further accommodation alteration changes required at Wellington office and computer and furniture/fittings costs associated with the Ombudmen's enhanced role in prisons
  • the reduced budgetary provision of $123,000 for 2009/10 and outyears reflects capital expenditure intentions for the foreseeable future.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Ombudsmen
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Improved administration, accountability, transparency and 'open' government Investigation and Resolution of Complaints about Government Administration
For further information on the intended impacts, outcomes and objectives of the Office of the Ombudsmen output expense appropriations please see the Office's 2010-2013 Statement of Intent.

Investigation and Resolution of Complaints About Government Administration (M78)

Scope of Appropriation

This appropriation is limited to the investigation and resolution of complaints about the administrative acts, omissions and decisions of Government at central, regional or local levels.

Expenses and Revenue

Expenses and Revenue - Investigation and Resolution of Complaints About Government Administration (M78) - Ombudsmen
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,407 7,407 7,957
Revenue from Crown 7,407 7,407 7,957
Revenue from Other - - -

Reasons for Change in Appropriation

The increase in the appropriation results from the Ombudsmen's new responsibilities under the Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 and an adjustment for capability maintenance.

Output Performance Measures and Standards

Output Performance Measures and Standards - Investigation and Resolution of Complaints About Government Administration (M78) - Ombudsmen
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Improved administrative and decision making practices in state sector agencies (Ombudsmen Act 1975)      
% of complainants satisfied with standard of service - - New measure - 70%
% of agencies satisfied with standard of service - - New measure - 70%
All complaints and correspondence will be considered Meet Meet Meet
# of complaints closed during the reporting year 8,680 8,500 Demand driven approximately 8,500
Monitor all death in custody investigations by the Department of Corrections Meet Meet Incidence driven - approximately 12-15
Priority J - Outside jurisdiction - % completed within 1 month from date of receipt - - New measure - 90%
Priority 1 - Urgent - % completed within 4 months from date of receipt - - New measure - 90%
Priority 2 - High public interest - % completed within 6 months from date of receipt - - New measure - 70%
Priority 3 - Others - % completed within 12 months from date of receipt - - New measure - 70%
Increased transparency, accountability and public participation in government decision making (official information)      
% of complainants satisfied with standard of service regarding Official Information Act 1982 - - New measure - 70%
% of agencies satisfied with standard of service regarding Official Information Act 1982 - - New measure - 70%
% of complainants satisfied with standard of service regarding Local Government Official Information and Meetings Act 1987 - - New measure - 70%
% of agencies satisfied with standard of service regarding Local Government Official Information and Meetings Act 1987 - - New measure - 70%
All complaints and correspondence will be considered Meet Meet Meet
# of complaints closed during the reporting year - Official Information Act 1982 1,300 750 Demand driven - approximately 800
# of complaints closed during the reporting year - Local Government Official Information and Meetings Act 1987 180 250 Demand driven - approximately 250
Official Information Act 1982:      
Priority J - Outside jurisdiction - % completed within 1 month from date of receipt - - New measure - 90%
Priority 1 - Urgent - % completed within 4 months from date of receipt - - New measure - 90%
Priority 2 - High public interest - % completed within 6 months from date of receipt - - New measure - 70%
Priority 3 - Others - % completed within 12 months from date of receipt - - New measure - 70%
Local Government Official Information and Meetings Act 1987:      
Priority J - Outside jurisdiction - % completed within 1 month from date of receipt - - New measure - 90%
Priority 1 - Urgent - % completed within 4 months from date of receipt - - New measure - 90%
Priority 2 - High public interest - % completed within 6 months from date of receipt - - New measure - 70%
Priority 3 - Others - % completed within 12 months from date of receipt - - New measure - 70%
People in detention treated humanely (Crimes of Torture Act 1989)      
# of announced visits to places of detention under the National Preventive Mechanism designation - - New measure - 33
# of unannounced visits to places of detention under the National Preventive Mechanism designation - - New measure - 17
% of reports sent to places of detention with 3 months of visit - - New measure - 95%
Potential serious wrongdoing brought to light and investigated by the appropriate authority (Protected Disclosures Act 2000 (Whistleblowers))      
% of requests for guidance and assistance completed within 6 months from date of receipt - - New measure - 95%
Improved capability of state sector in administrative decision making and complaint handling processes and official information legislation      
% of participants in Ombudsmen training who report that the training will assist them in their work - - New measure - 95%
% of agencies satisfied with information currently available from the Office - - New measure
# of training sessions provided to agencies during the reporting year - - New measure - Demand driven approximately 30-40
# of practice guideline, case notes, pamphlets produced or updated during the year - - New measure - Demand driven approximately 10-15
Improved public awareness and access to Ombudsmen services      
# of speeches and presentations given by the Office - - New measure - Demand driven 25
# of non-English languages pamphlets made available 5 5 4
# of general enquiries (non grievance based) - - New measure - Demand driven
# of general enquiries (grievance based) - - New measure - Demand driven approximately 500

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Investigation and Resolution of Complaints About Government Administration (M78) - Ombudsmen
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Capability Maintenance 2010 - 320 320 - -
Implementation United Nations Convention on the Rights of Persons with Disabilities 2010 - 230 230 230 -
Capability maintenance 2008 - 14 14 14 14
Capability building 2008 - 290 290 290 290
Enhanced Ombudsmen role within prisons 2008 69 1,285 1,323 1,323 1,323
Capability building 2007 162 159 159 159 159
Implementation United Nations Convention Against Torture 2007 189 160 160 160 160
Capability maintenance 2007 240 480 480 480 480
Capability maintenance 2006 117 117 117 117 117

Part 5 - Details and Expected Results for Other Expenses#

Part 5.1 - Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.1 Departmental Other Expenses - Ombudsmen
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Improved administration, accountability, transparency and 'open' government - Ombudsmen remuneration Investigation and Resolution of Complaints about Government Administration

Remuneration of Ombudsmen PLA (M78)

Scope of Appropriation

This appropriation is limited to remuneration expenses for the Ombudsmen as authorised by sections 8 and 9 of the Ombudsmen Act 1975.

Expenses

Expenses - Remuneration of Ombudsmen PLA (M78) - Ombudsmen
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 611 611 611
Revenue from the Crown 611 611 611

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Remuneration of Ombudsmen PLA (M78) - Ombudsmen
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Reversion to two Ombudsmen 2008 (228) (228) (228) (228) (228)
Appointment of third Ombudsman and Ombudsmen remuneration adjustments 2007 285 285 285 285 285

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.1 Departmental Capital Expenditure - Ombudsmen
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Maintain and upgrade capability through the routine replacement of the Office of the Ombudsmen information technology and office equipment and fittings. Investigation and Resolution of Complaints about Government Administration Capital Expenditure

Office of the Ombudsmen - Capital Expenditure PLA (M78)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Office of the Ombudsmen Capital Expenditure PLA (M78) - Ombudsmen
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 55 55 43
Intangibles 68 68 80
Other - - -

Total Appropriation

123 123 123
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 55 55 43
Intangibles 68 68 80
Other - - -

Total Appropriation

123 123 123

Performance Information for Appropriations Vote Parliamentary Service#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Speaker of the House of Representatives (M78)

ADMINISTERING DEPARTMENT: Parliamentary Service

MINISTER RESPONSIBLE FOR PARLIAMENTARY SERVICE: Speaker of the House of Representatives

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Speaker is responsible for appropriations in Vote Parliamentary Service for the 2010/11 financial year covering the following:

  • a total of just over $67 million for purchasing support and administrative services from the Parliamentary Service
  • a total of just over $41 million for covering other expenditure to support members
  • a total of nearly $17 million for payment of members' salaries and allowances
  • a total of just over $4 million for capital investment in the parliamentary precincts.

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

Part 1.2 - High-Level Objectives of the Vote#

Objectives of the Vote

The Parliamentary Service's key objective is:

  • Provision of high-quality services to Parliament.

The Parliamentary Service has five intermediate objectives. These are:

  • Improve member and Party satisfaction
  • Improve systems and processes
  • Improve people capability
  • Increase productivity
  • Enhance the stewardship of the institution of Parliament

The Service's empowering legislation is the Parliamentary Service Act 2000, which states in section 7 that the principal duties of the Parliamentary Service are:

(a) to provide administrative and support services to the House of Representatives and to members of Parliament; and

(b) to administer, in accordance with directions given by the Speaker, the payment of funding entitlements for parliamentary purposes.

Summary of Financial Activity

Summary of Financial Activity - Parliamentary Service
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 43,759 51,559 58,471 65,357 66,745 66,745 67,015 - 67,015 66,793 66,901 66,901
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 50,114 50,629 53,840 55,418 58,192 58,192 - 58,192 58,192 58,192 58,192 58,192
Capital Expenditure 27,504 13,914 11,642 9,354 7,326 7,326 4,165 1,525 5,690 7,254 7,243 7,516
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

121,377 116,102 123,953 130,129 132,263 132,263 71,180 59,717 130,897 132,239 132,336 132,609

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue - 871 3 1 - - N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

- 871 3 1 - - N/A - - - - -

New Policy Initiatives

Budget Policy Intiatives - Parliamentary Service
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Expense Transfers in Principle from 2008/09 to 2009/10 Operations, Information and Advisory Services MCOA 988 - - - -
Expense Transfer from 2009/10 to 2010/11 Operations, Information and Advisory Services MCOA (450) 450 - - -
Increased Out-of-Parliament Support for Large Electorate Operations, Information and Advisory Services MCOA 644 644 644 644 644
Increased Out-of-Parliament Support for Large Electorate Non-Departmental Other Expenses 508 508 508 508 508
Simultaneous Interpretation of Parliamentary Debates from Maori to English Operations, Information and Advisory Services MCOA 18 77 77 77 77
Simultaneous Interpretation of Parliamentary Debates from Maori to English Departmental Capital Injection 350 - - - -
Parliamentary Buildings, Facilities and Costs Resulting from the Election Operations, Information and Advisory Services MCOA 1,182 1,182 1,182 1,182 1,182
Parliamentary Buildings, Facilities and Costs Resulting from the Election Services to Members 124 124 124 124 124

Analysis of Significant Trends

Output expenses

The increase in 2010/11 and outyears is for continued provision of buildings, facilities and support to large electorates.

Other expenses

The increase in 2010/11 and outyears is for continued support to large electorates.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Parliamentary Service
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective - The parliamentary precincts meet the constitutional and institutional requirements of a parliament; that is, providing accessibility and security, a forum for debate and public participation, and effective office facilities and support services. Operations, Information and Advisory Services MCOA
Objective - Members are provided with a range of services and facilities, which is responsive to their needs as legislators and elected representatives, and makes the most effective use of resources allocated by the Government. Services to Members

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

Operations, Information and Advisory Services MCOA (M78)

Scope of Appropriation

Building and Operations Management
This output class is limited to the provision of building maintenance and operational services for the parliamentary precincts.
Parliamentary Information Services
This output class is limited to the provision of library and electronic information services through the Parliamentary Library; the provision of computing facilities; and computing and telecommunications advisory services associated with these.
Personnel and Accounting Services to Members and Other Agencies
This output class is limited to the provision of services to members, Leader and Whip offices, electoral candidates and former members, providing travel, accounting, staffing advice and support, health safety and wellness, payroll services; and, bureau accounting and payroll services to other parliamentary agencies.
Policy Advice
This output class is limited to the provision of information, analysis and advice to the Speaker, the Parliamentary Service Commission, and the Parliamentary Corporation.

Explanation for Use of Multi-Class Output Expense Appropriation

MCOA established to combine similar output classes for services provided by Parliamentary Service.

Expenses and Revenue

Expenses and Revenue - Operations, Information and Advisory Services MCOA (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

49,049 49,049 48,893
Building and Operations Management 27,578 27,578 27,928
Parliamentary Information Services 14,014 14,014 13,716
Personnel and Accounting Services to Members and Other Agencies 6,321 6,321 6,413
Policy Advice 1,136 1,136 836

Revenue from Crown

46,987 46,987 47,235
Building and Operations Management 26,917 26,917 27,226
Parliamentary Information Services 13,290 13,290 13,459
Personnel and Accounting Services to Members and Other Agencies 5,649 5,649 5,719
Policy Advice 1,131 1,131 831

Revenue from Other

2,062 2,062 1,658
Building and Operations Management 661 661 702
Parliamentary Information Services 724 724 257
Personnel and Accounting Services to Members and Other Agencies 672 672 694
Policy Advice 5 5 5

Reasons for Change in Appropriation

This appropriation has not changed materially.

Output Performance Measures and Standards

Output Performance Measures and Standards - Operations, Information and Advisory Services MCOA (M78) - Parliamentary Service
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Users of the information and research services give it at least a 90% satisfaction rating. 90% 90% 90%
Users of the Parliamentary Service Intranet/Internet site rate the usability of the site favourably. 90%
At least a 90% success rating for basic and medium level tasks is achieved.
90%
At least a 90% success rating for basic and medium level tasks is achieved.
90%
At least a 90% success rating for basic and medium level tasks is achieved.
Network availability for email services, file and print services, Internet access and Intranet access in the precincts will be at least 99.5%. 99.5% 99.5% 99.5%
Joint Service Desk project delivers effective services to members. New standard New standard 90%
At least a 90% success rating for basic and medium level tasks is achieved.
Building works are carried out as in the Crown Asset Management Plan for the Parliamentary Precinct. It is estimated that the value will be 0. (See conditions on use of appropriations). It is estimated that the value will be 0. (See conditions on use of appropriations). Building work as per Crown Asset Management Plan completed on time and within budget to the specifications given.
Security recommendations from Risk and Threat Assessment 2008 and Security Review 2010 implemented as agreed. New standard New standard Review recommendations implemented in accordance with implementation plan.
Policy advice will be delivered according to the Forward Programme for the Parliamentary Service Commission and to the Speaker. New standard New standard Policy completed to agreed standards.
The Speaker will indicate satisfaction with the quality and timeliness of advice received. The Speaker is satisfied. The Speaker is satisfied. The Speaker is satisfied.
Member's claims to reimbursements are processed in a timely and accurate manner and in accordance with the directions set out by the Speaker. Account transactions are entered for payment within five days of being received.
Accounting services are processed with an accuracy rate of at least 99.9%.
Claims received within seven working days of the end of the month are processed by the 15th of each month.
Account transactions are entered for payment within five days of being received.
Accounting services are processed with an accuracy rate of at least 99.9%.
Claims received within seven working days of the end of the month are processed by the 15th of each month.
Account transactions are entered for payment within five days of being received.
Accounting services are processed with an accuracy rate of at least 99.9%.
Claims received within seven working days of the end of the month are processed by the 15th of each month.
Accurate and timely financial, staffing and general advice and support is provided to party and members' offices when sought. The Parliamentary Service's client survey results show that, overall, 80% of the respondents are satisfied with the quality of the service given by the Parliamentary Service (including the professionalism and the quality of the relationships with the Parliamentary Service). The Parliamentary Service's client survey results show that, overall, 80% of the respondents are satisfied with the quality of the service given by the Parliamentary Service (including the professionalism and the quality of the relationships with the Parliamentary Service). The Parliamentary Service's client survey results show that, overall, 80% of the respondents are satisfied with the quality of the service given by the Parliamentary Service (including the professionalism and the quality of the relationships with the Parliamentary Service).
Complaints, concerns and issues are logged, with active identification of items and early resolution where possible without resort to formal processes. At least 80% of recorded complaints, concerns and issues (in relation to accounting services and payroll services (including bureau services), support services to party and members' offices and travel office services) are resolved after three working days, with 95% resolved in ten days. At least 80% of recorded complaints, concerns and issues (in relation to accounting services and payroll services (including bureau services), support services to party and members' offices and travel office services) are resolved after three working days, with 95% resolved in ten days. At least 80% of recorded complaints, concerns and issues (in relation to accounting services and payroll services (including bureau services), support services to party and members' offices and travel office services) are resolved after three working days, with 95% resolved in ten days.
Client service project including a new financial management system and upgrades to the HR and payroll systems is achieved. New standard New standard Systems upgrades achieved on time, within budget and to the project specifications.
Planning for the Service's contribution to the support of the 2011 General Election. New standard New standard An implementation plan is completed before election called.
Business Improvement Programme is completed. New standard New standard All projects within the Programme are completed on time, within budget and to project specifications.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Operations, Information and Advisory Services MCOA (M78) - Parliamentary Service
Reference Conditions
Network availability. The calculation of non-availability includes planned and unplanned outages.
Satisfaction rating for Information and Research Services. Surveys are randomly selected samples of all major users of the service, including members.
Usability of the Intranet/Internet websites. To measure the effectiveness of the Intranet website, the Service has selected a range of tasks, from basic tasks that all users should be able to complete, to advanced tasks more likely to be used by experienced researchers. Users are selected from the major client groups to perform the range of tasks without guidance. A rating is produced by scoring successful and unsuccessful completion of tasks.
Quality and Timeliness Standards for Policy Advice. All policy advice and reports prepared conform to quality criteria for:
  • purpose
  • logic
  • accuracy
  • options
  • consultation
  • practicality
  • presentation
Papers to the Parliamentary Service Commission are provided at least two days before scheduled Commission meetings (except in the case of urgent papers or otherwise at the Speaker's discretion).
Selection of papers are benchmarked against NZIER independent measures.
Members' claims to reimbursements. Reimbursement claims must meet conditions set out in the Speaker's Directions and the Service's "Financial and Administrative Policies and Processes" package that ensures that reimbursements are claimed and administered in a way that adheres to the Speaker's Directions.
Accurate and timely financial, staffing and general advice and support is provided to party and members' offices when sought. Quality is measured by the use of a quantitative and qualitative survey to measure client satisfaction ratings.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Operations, Information and Advisory Services MCOA (M78) - Parliamentary Service
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Simultaneous Interpretation of Parliamentary Debates from Maori to English 2009 18 77 77 77 77
Increased Out-of-Parliament Support for Large Electorates 2008 644 644 644 644 644
Parliamentary Buildings, Facilities and Costs Resulting from the Election 2008 1,182 1,182 1,182 1,182 1,182
Capability Development and Performance Enhancement 2007 343 343 343 343 343
ICT Services Capability 2007 825 825 825 825 825
Televising Parliament 2006 77 77 77 77 77
Televising Parliament 2006 1,245 1,245 1,245 1,245 1,245
Parliamentary Service Expenditure Change Programme Funding 2006 283 283 283 283 283
Extended Parliamentary Network 2006 1,277 1,277 1,277 1,277 1,277
Information System Disaster Recovery Phase 2 2005 378 378 378 378 378
Funding to Address Security Risk and Health and Safety in Out-of-Parliament Offices 2005 100 100 100 100 100

Services to Members (M78)#

Scope of Appropriation

This appropriation is limited to the provision of services to Office of the Speaker of the House of Representatives and of support staff to members and, during the immediate post election period, electoral candidates and former members in accordance with Directions given by the Speaker.

Expenses and Revenue

Expenses and Revenue - Services to Members (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,696 17,696 18,122
Revenue from Crown 17,300 17,300 17,600
Revenue from Other 396 396 522

Reasons for Change in Appropriation

This appropriation has not changed materially.

Output Performance Measures and Standards

Output Performance Measures and Standards - Services to Members (M78) - Parliamentary Service
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Speaker is satisfied with the provision of resources and services to his office. Overall satisfaction with services. Overall satisfaction with services. Overall satisfaction with services.
Party whips and members are satisfied with the provision of support staff. Satisfaction with provision of support staff is indicated. Satisfaction with provision of support staff is indicated. Satisfaction with provision of support staff is indicated.
Service Level Agreement standards met. New standard New standard Agreed standards met.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Services to Members (M78) - Parliamentary Service
Reference Conditions
Services to the Office of the Speaker of the House of Representatives Six-monthly independent discussions with the Speaker show that, overall, the Speaker is satisfied with the quality of the service given by the Parliamentary Service (including the professionalism and the quality of the relationships with the Parliamentary Service).
Members and Whips satisfaction with services The Parliamentary Service's client survey of party whips and members show that, overall, they are satisfied with the provision of support staff.
Service Level Agreements These agreements on the quantity and quality of services to be provided to members and others will be in place before the beginning of the financial year and will include performance measures and standards monitored by the Service.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Services to Members (M78) - Parliamentary Service
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Parliamentary Buildings, facilities and costs relating from the 2008 General Election. 2008 124 124 124 124 124
Speakers Assurance Committee support. 2007 57 57 57 57 57

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Parliamentary Service
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The objective for this appropriation is to take into account depreciation expense on the Parliamentary Complex and Library. Depreciation Expense on Parliamentary Complex
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Members' Communications
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Members of the House of Representatives' Salaries and Allowances
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Party and Member Support - ACT
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Party and Member Support - Green
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Party and Member Support - Labour
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Party and Member Support - Maori
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Party and Member Support - National
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Party and Member Support - Progressive Coalition
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Party and Member Support - United Future
The objective for this appropriation is to ensure funding to members and parliamentary political parties comply with appropriate legislation and/or the Speaker's Directions and Determinations. Travel of Members and Others

Depreciation Expense on Parliamentary Complex (M78)

Scope of Appropriation

This appropriation is limited to the depreciation expense on the Parliamentary buildings, furniture, antiques and art collection, and the library collection.

Expenses

Expenses - Depreciation Expense on Parliamentary Complex (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,274 11,274 11,274

Members' Communications (M78)#

Scope of Appropriation

This appropriation is limited to members' and, during the immediate post election period, electoral candidates' and former members' communications (voice and data) entitlements, and members' and, during the immediate post election period, electoral candidates' and former members' use of standard office products and stationery supplies as allowed under directions given by the Speaker.

Expenses

Expenses - Members' Communications (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,426 2,426 2,426

Members of the House of Representatives' Salaries and Allowances PLA (M78)#

Scope of Appropriation

This appropriation is limited to expenses incurred under section 16 of the Civil List Act 1979 and incorporates salaries and allowances determined by the Remuneration Authority, payable to members of Parliament who are neither Ministers of the Crown nor Parliamentary Under-Secretaries.

Expenses

Expenses - Members of the House of Representatives' Salaries and Allowances PLA (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,022 17,022 17,022

Party and Member Support - ACT (M78)#

Scope of Appropriation

This appropriation is limited to funding for the ACT parliamentary party to support its Leader's office, research operations, Whip's office, members' and, during the immediate post election period, electoral candidates' and former members' parliamentary operations as allowed under directions given by the Speaker.

Expenses

Expenses - Party and Member Support ACT (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 631 631 631

Party and Member Support - Green (M78)#

Scope of Appropriation

This appropriation is limited to funding for the Green parliamentary party to support its Co-Leaders' office, research operations, Parliamentary musterer's office, members' and, during the immediate post election period, electoral candidates' and former members' parliamentary operations as allowed under directions given by the Speaker.

Expenses

Expenses - Party and Member Support Green (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,246 1,246 1,246

Party and Member Support - Labour (M78)#

Scope of Appropriation

This appropriation is limited to funding for the Labour parliamentary party to support its Leader's office, research operations, Whips' office, members' and, during the immediate post election period, electoral candidates' and former members' parliamentary operations as allowed under directions given by the Speaker.

Expenses

Expenses - Party and Member Support Labour (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,144 6,144 6,144

Party and Member Support - Maori (M78)#

Scope of Appropriation

This appropriation is limited to funding for the Maori parliamentary party to support its Co-Leader's office, research operations, Whips' office, members' and, during the immediate post election period, electoral candidates' and former members' parliamentary operations as allowed under directions given by the Speaker.

Expenses

Expenses - Party and Member Support Maori (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 889 889 889

Party and Member Support - National (M78)#

Scope of Appropriation

This appropriation is limited to funding for the National parliamentary party to support its Leader's office, research operations, Whips' office, members' and, during the immediate post election period, electoral candidates' and former members' parliamentary operations as allowed under directions given by the Speaker.

Expenses

Expenses - Party and Member Support National (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,122 7,122 7,122

.

Party and Member Support - Progressive Coalition (M78)#

Scope of Appropriation

This appropriation is limited to funding for the Progressive Coalition parliamentary party to support its Leader's office, research operations, member's and, during the immediate post election period, electoral candidates' and former members' parliamentary operations as allowed under directions given by the Speaker.

Expenses

Expenses - Party and Member Support Progressive Coalition (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 251 251 251

Party and Member Support - United Future (M78)#

Scope of Appropriation

This appropriation is limited to funding for the United Future parliamentary party to support its Leader's office, research operations, member's and, during the immediate post election period, electoral candidates' and former members' parliamentary operations as allowed under directions given by the Speaker.

Expenses

Expenses - Party and Member Support United Future (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 187 187 187

Travel of Members and Others (M78)#

Scope of Appropriation

This appropriation is limited to domestic accommodation, air, land and sea travel, and international air travel for members, spouses/partners and dependents, electoral candidates and their spouses/partners and dependents, former members and spouses/partners, political exchange participants and officials as allowed under directions given by the Speaker.

Expenses

Expenses - Travel of Members and Others (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,000 11,000 11,000

.

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Parliamentary Service
Appropriation Reporting Mechanism
Depreciation Expense on Parliamentary Complex Parliamentary Service Annual Report
Members' Communications Parliamentary Service Annual Report
Members of the House of Representatives' Salaries and Allowances Parliamentary Service Annual Report
Party and Member Support - ACT Parliamentary Service Annual Report
Party and Member Support - Green Parliamentary Service Annual Report
Party and Member Support - Labour Parliamentary Service Annual Report
Party and Member Support - Maori Parliamentary Service Annual Report
Party and Member Support - National Parliamentary Service Annual Report
Party and Member Support - Progressive Coalition Parliamentary Service Annual Report
Party and Member Support - United Future Parliamentary Service Annual Report
Travel of Members and Others Parliamentary Service Annual Report

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

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.1 Departmental Capital Expenditure - Parliamentary Service
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The objective for this output is to provide funding for capital items to allow the Parliamentary Service to meet its primary objectives. Parliamentary Service - Capital Expenditure PLA

Parliamentary Service - Capital Expenditure PLA (M78)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Parliamentary Service Capital Expenditure PLA (M78) - Parliamentary Service
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 5,332 5,332 3,355
Intangibles 250 250 810
Other - - -

Total Appropriation

5,582 5,582 4,165
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 5,332 5,332 3,355
Intangibles 250 250 810
Other - - -

Total Appropriation

5,582 5,582 4,165

Reasons for Change in Appropriation

There are many projects included in each year, and capital works are often only for a single year, so direct comparison has limited value.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Parliamentary Service
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The objective for this output is to maintain Crown assets within the parliamentary precincts. Crown Asset Management

Crown Asset Management (M78)

Scope of Appropriation and Capital Expenditure

Multi-Year Appropriations - Parliamentary Service
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Non-Departmental Capital Expenditure

   

Crown Asset Management (M78)

Minor Capital works within the Parliamentary Complex to carry out essential maintenance and minor capital improvements.

Commences: 1 July 2008

Expires: 30 June 2012

Original Appropriation 7,112
Adjustments for 2008/09 -
Adjustments to 2009/10 -
Adjusted Appropriation 7,112
Actual to 2008/09 Year End 1,981
Estimated Actual for 2009/10 1,744
Estimated Actual for 2010/11 1,525
Estimated Appropriation Remaining 1,862

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Parliamentary Service
Appropriation Reporting Mechanism
Crown Asset Management Parliamentary Service Annual Report

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 Prime Minister and Cabinet#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Prime Minister (M52)

ADMINISTERING DEPARTMENT: Department of the Prime Minister and Cabinet

MINISTER RESPONSIBLE FOR DEPARTMENT OF THE PRIME MINISTER AND CABINET: Prime Minister

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Prime Minister is responsible for appropriations in the Vote: Prime Minister and Cabinet for the 2010/11 financial year covering the following:

  • a total of over $8.440 million (26.5% of the Vote) on free and frank advice on policy issues; services to facilitate inter-departmental coordination of policy development and leadership of a more collective approach to performance across the state sector; and coordination of central government activities aimed at protecting New Zealand's domestic and external security. From the Cabinet Office, advice on constitutional policy and procedural issues for the Governor-General, and the Prime Minister and Cabinet; coordination of the Government's legislation programme; secretariat services to Cabinet, Cabinet committees and the Executive Council; and administration of the New Zealand Royal Honours system
  • a total of over $3.590 million (11.3% of the Vote) on support services to the Governor-General and maintenance of the Residences
  • a total of $3.780 million (11.9% of the Vote) for the provision of information and reports on events and trends affecting New Zealand's national security priorities
  • a total of $335,000 (1.1%) for establishing and operating the Science Advisory Committee
  • a total of $11.650 million (36.6% of the Vote) on Government House capital investment, principally the conservation (including renovation and refurbishment) of Government House, Wellington
  • a total of nearly $1.280 million (4.0% of the Vote) under permanent legislative authority (Civil List Act 1979) for payments for the salary, personal allowance and travel expenses of the Governor-General
  • a total of over $1.470 million (4.6% of the Vote) on departmental capital expenditure
  • a total of $51,000 (0.2% of the Vote) under permanent legislative authority (NZSIS Amendment (No. 2) Act 1999) for payments to the Commissioner of Security Warrants
  • a total of $1.060 million (3.3% of the Vote) for depreciation expenses on Crown assets (Government Houses and their contents)
  • a total of $168,000 (0.5% of the Vote) for an ex gratia payment to the University of Auckland for the services of the Prime Minister's Chief Science Advisor.

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

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Prime Minister and Cabinet
Government Priorities Government Outcomes Appropriations
Improve the quality of public services
Better equip New Zealanders to meet the economic challenges they face
Grow the economy and create sustainable new jobs
Decision making by the Prime Minister and Cabinet is well informed and supported Policy Advice and Secretariat and Coordination Services
  Intelligence Assessments to Support National Securities Priorities
  Executive government is well conducted and continues in accordance with the accepted conventions and practices Policy Advice and Secretariat and Coordination Services
  The Governor-General is appropriately advised and supported in undertaking his constitutional, ceremonial and community leadership roles Support Services to the Governor-General and Maintenance of the Government Houses, New Zealand
  The management of domestic and external security is well planned, informed and coordinated Policy Advice and Secretariat and Coordination Services
    Intelligence Assessments to Support National Security Priorities
  State sector performance is improved Policy Advice and Secretariat and Coordination Services
    Science Advisory Committee

Objectives of the Vote

The appropriations for Vote Prime Minister and Cabinet are directed towards the overarching objective to work to achieve good government.

Summary of Financial Activity

Summary of Financial Activity - Prime Minister and Cabinet
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 14,172 14,936 15,619 15,119 15,688 15,288 16,147 - 16,147 15,812 15,816 15,834
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 1,209 1,257 1,565 5,114 3,146 2,846 - 2,558 2,558 2,897 2,897 2,897
Capital Expenditure 795 146 1,744 6,544 21,207 18,807 1,472 11,650 13,122 5,887 450 450
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

16,176 16,339 18,928 26,777 40,041 36,941 17,619 14,208 31,827 24,596 19,163 19,181

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue - - - - - - N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

- - - - - - N/A - - - - -

New Policy Initiatives

Budget Policy Intiatives - Prime Minister and Cabinet
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Relocation of DPMC's intelligence groups Intelligence Assessments to Support National Security Priorities (M52)
Departmental Output Class
- 340 340 340 358
  Departmental Capital Expenditure (M52) - 1,172 - - -
Establishment of the Science Advisory Committee Science Advisory Committee (M52)
Departmental Output Class
335 335 - - -
Establishment of the Science Advisory Committee Ex gratia payment to the University of Auckland (M52)
Non-Departmental Other Expenses
168 168 - - -
Total   503 2,015 340 340 358

Analysis of Significant Trends

Total Vote: All Appropriations

The movements in departmental and non-departmental appropriations in Vote Prime Minister and Cabinet, which are detailed in the Summary of Financial Activity table above, are largely driven by movements in Output Expenses and Crown Capital Expenditure.

Details of significant movements within each appropriation category are detailed below.

Departmental Output Expenses

The increase in 2007/08 is largely due to one-off funding for the climate change programme.

The increase in 2009/10 is largely due to increase in funding for the establishment of the Science Advisory Committee.

The increase in 2010/11 is largely due to increase in funding for the establishment of the Science Advisory Committee and for relocation of DPMC's intelligence groups to a new purpose built facility for the Government Communications Security Bureau.

Non-Departmental Capital Expenditure

This appropriation includes in particular capital additions, alterations and conservation activities at Government House Wellington in order to maintain or increase its on-going use, functionality, and heritage asset value.

The increase in 2007/08 is due to additional funding for detailed design for the proposed conservation of Government House, Wellington.

The increase in 2008/09 is due to additional funding for the conservation of Government House, Wellington.

The increase in 2009/10 is due to transfer from 2010/11 baseline. This funding is time limited until 2011/12.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Prime Minister and Cabinet
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Decision-making by the Prime Minister and Cabinet is well informed and supported Policy Advice and Secretariat and Coordination Services
  Intelligence Assessments to Support National Security Priorities
Outcome - Executive Government is well conducted and continues in accordance with accepted conventions and practices Policy Advice and Secretariat and Coordination Services
Outcome -The Governor-General is appropriately advised and supported in undertaking his constitutional, ceremonial and community leadership roles Support Services and Maintenance of the Residences
Outcome - The management of domestic and external security is well planned, informed and coordinated Policy Advice and Secretariat and Coordination Services
  Intelligence Assessments to Support National Security Priorities
Outcome - State sector performance is improved Policy Advice and Secretariat and Coordination Services
Outcome - Decision making by the Prime Minister and Cabinet in relation to science and science policy is well informed and supported Science Advisory Committee

For further information on the intended impacts, outcomes and objectives of the departmental output expense appropriations, please see the Statement of Intent for the Department of Prime Minister and Cabinet.

Intelligence Assessments to Support National Security Priorities (M52)

Scope of Appropriation

Assessments on events and trends that affect New Zealand's national security interests.

Expenses and Revenue

Expenses and Revenue - Intelligence Assessments to Support National Security Priorities (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,463 3,413 3,780
Revenue from Crown 3,463 3,463 3,780
Revenue from Other - - -

Reasons for Change in Appropriation

The net increase in 2010/11 is a result of additional funding for relocation of DPMC's intelligence groups and a transfer of funds to Vote: Communications, Security and Intelligence, to support secure network upgrades.

Output Performance Measures and Standards

Output Performance Measures and Standards - Intelligence Assessments to Support National Security Priorities (M52) - Prime Minister and Cabinet
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The assessments of developments overseas are highly-quality, accurate and succinct 100% of assessments are factually correct 100% 100% of assessments are factually correct
  90% of assessments require no more than minor revision At least 90% 90% of assessments require no more than minor revision
  Feedback from key stakeholders is positive Discussion with key stakeholders indicate satisfaction with service Feedback from key stakeholders is positive
The assessments are of policy relevance to New Zealand Feedback from key stakeholders is positive Survey being conducted to assess stakeholder satisfaction Feedback from key stakeholders is positive

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Intelligence Assessments to Support National Security Priorities (M52) - Prime Minister and Cabinet
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Relocation of DPMC's intelligence groups 2010/11 - 340 340 340 358
Expansion of capability to improve whole-of-government performance 2007/08 302 302 302 302 302
Expansion of capability to provide greater geographical and in-depth coverage in assessments provided 2004/05 300 300 300 300 300
Total   602 942 942 942 960

Policy Advice and Secretariat and Coordination Services (M52)#

Scope of Appropriation

Strategic and issues-based policy advice of a frank and impartial nature to the Prime Minister and other Ministers; advice on constitutional policy and procedural issues for the Governor-General, and the Prime Minister and Cabinet; support for the coordination of the Government's legislation programme; secretariat services to the Executive Council, Cabinet and its committees; and administration of the New Zealand Honours system.

Expenses and Revenue

Expenses and Revenue - Policy Advice and Secretariat and Coordination Services (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,369 8,039 8,441
Revenue from Crown 8,369 8,369 8,441
Revenue from Other - - -

Reasons for Change in Appropriation

The increase in 2010/11 is due mainly to a fiscally neutral transfer to Support Services to the Governor-General and Maintenance of the Residences in 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice and Secretariat and Coordination Services (M52) - Prime Minister and Cabinet
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Advice provide meets the department's quality, quantity and timeliness standards Key stakeholders are satisfied Surveys being conducted to ascertain stakeholder satisfaction Key stakeholders are satisfied
Services provided meet quality, accuracy, impartiality and timeliness criteria Key stakeholders are satisfied Survey being conducted to ascertain stakeholders satisfaction Key stakeholders are satisfied

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice and Secretariat and Coordination Services (M52) - Prime Minister and Cabinet
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Upgrade of information and communications technology infrastructure and websites 2008/09 336 336 336 336 336
Expansion of capability to improves whole-of -Government performance 2007/08 874 874 874 874 874
Expansion of capability to improve whole-of-Government performance 2006/07 450 450 450 450 450
Expansion of capability to provide quality advice 2003/04 535 535 535 535 535
Total   2,195 2,195 2,195 2,195 2,195

Science Advisory Committee (M52)#

Scope of Appropriation

This appropriation is limited to the provision of high quality scientific advice to the Prime Minister.

Expenses and Revenue

Expenses and Revenue - Science Advisory Committee (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 335 335 335
Revenue from Crown 335 335 335
Revenue from Other - - -

Output Performance Measures and Standards

Output Performance Measures and Standards - Science Advisory Committee (M52) - Prime Minister and Cabinet
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Advice provided meets the department's quality, quantity and timeliness standards Key stakeholders are satisfied - Key stakeholders are satisfied

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Science Advisory Committee (M52) - Prime Minister and Cabinet
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Transfer from Vote: Research, Science and Technology for the establishment of the Science Advisory Committee 2009/10 335 335 - - -
Total   335 335 - - -

Reasons for Change in Appropriation

In response to commitments made by the incoming government, Cabinet agreed to establish the Science Advisory Committee.

Support Services to the Governor-General and Maintenance of the residences (M52)#

Scope of Appropriation

This appropriation is limited to financial, administrative, communications, travel and advisory services for the Governor-General; services to maintain the Governor-General's residences including gardening, maintenance and security; and conservation of Government House, Wellington.

Expenses and Revenue

Expenses and Revenue - Support Services to the GovernorGeneral and Maintenance of the residences (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,521 3,501 3,591
Revenue from Crown 3,491 3,491 3,561
Revenue from Other 40 36 40

Reasons for Change in Appropriation

The increase in 2010/11 is due mainly to a fiscally neutral transfer to Government House Capital Investment in 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Support Services to the GovernorGeneral and Maintenance of the residences (M52) - Prime Minister and Cabinet
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Support to the Governor-General is efficient and effective Feedback from the Governor-General is positive No negative feedback received Feedback from the Governor-General is positive
Events at Government House are well organised Feedback from key stakeholders on the quality of events is positive Feedback has been predominantly positive Feedback from key stakeholders on the quality of events is positive
Maintenance of the Governor-Generals programme is appropriate and well balanced Feedback from the Governor-General and other key stakeholders is positive Feedback has been predominantly positive Feedback from the Governor-General and other key stakeholders is positive
The Governor-General's official residences are well maintained Feedback from the Governor-General and key stakeholders is positive Feedback has been predominantly positive Feedback from the Governor-General and other key stakeholders is positive

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Support Services to the GovernorGeneral and Maintenance of the residences (M52) - Prime Minister and Cabinet
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Conservation of Government House, Wellington 2008/09 200 200 200 200 200
Expansion of capability to improve whole-of-government performance 2007/08 54 54 54 54 54
Expansion of maintenance programme for the Residences 2004/05 200 200 200 200 200
Total   454 454 454 454 454

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Prime Minister and Cabinet
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The Commissioner of Security Warrants is well supported Fees for the Commissioner of Security Warrants
The Governor-General is well supported Governor-General: Remuneration and Travel

Depreciation Expenses on Crown Assets (M52)

Scope of Appropriation

Depreciation expenses on Government Houses in Wellington and Auckland and their contents.

Expenses

Expenses - Depreciation Expenses on Crown Assets (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,710 1,710 1,060

Reasons for Change in Appropriation

The decrease in 2010/11 is due to additional depreciation required in 2009/10 for the write off of impaired assets resulting from the conservation project for Government House, Wellington.

Ex gratia payment to the University of Auckland (M52)#

Scope of Appropriation

This appropriation is limited to ex gratia payments to the University of Auckland to enable continued support of Professor Sir Peter Gluckman's own specialised research programme during his membership of the Science Advisory Committee.

Expenses

Expenses - Ex gratia payment to the University of Auckland (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 168 168 168

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Ex gratia payment to the University of Auckland (M52) - Prime Minister and Cabinet
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Establishment of the Science Advisory Committee 2009/10 168 168 - - -

Reasons for Change in Appropriation

In appointing the Chief Science Advisor, Cabinet agreed to make an ex gratia payment to the University of Auckland for his time.

Fees for the Commissioner of Security Warrants PLA (M52)#

Scope of Appropriation

The appropriation under permanent legislative authority (the NZSIS Amendment (No. 2) Act 1999) will provide for payments to the Commissioner as an independent judicial officer for the authorisation of domestic security warrants.

Expenses

Expenses - Fees for the Commissioner of Security Warrants PLA (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 49 49 51

Governor-General - Remuneration and Travel PLA (M52)#

Scope of Appropriation

The appropriation under permanent legislative authority (the Civil List Act 1979) provides for payment of the salary, personal allowance and travel expenses of the Governor-General.

Expenses

Expenses - GovernorGeneral Remuneration and Travel PLA (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,219 919 1,279

Reasons for Change in Appropriation

The increase in 2010/11 is for anticipated increases in the Governor-General's remuneration, personal allowance and travel expenses.

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Prime Minister and Cabinet
Appropriation Reporting Mechanism
Deprecation Expenses on Crown Assets G.48 Annual report
Fees for the Commissioner Security Warrants G.48 Annual report
Governor-General: Remuneration and travel G.48 Annual report
Ex Gratia payment to the University of Auckland G.48 Annual report

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

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.1 Departmental Capital Expenditure - Prime Minister and Cabinet
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Capital infrastructure continues to adequately support the delivery of our outputs Department of Prime Minster and Cabinet Capital Expenditure

Department of the Prime Minister and Cabinet - Capital Expenditure PLA (M52)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Department of the Prime Minister and Cabinet Capital Expenditure PLA (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 800 450 1,372
Intangibles 300 250 100
Other - - -

Total Appropriation

1,100 700 1,472
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 800 450 1,372
Intangibles 300 250 100
Other - - -

Total Appropriation

1,100 700 1,472

Reasons for Change in Appropriation

The net increase is due mainly to relocation of DPMC's intelligence groups.

Expected Results

Expected Results - Department of the Prime Minister and Cabinet Capital Expenditure PLA (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Department is enabled to maintain and enhance its ability to provide advice and support to Executive Government Feedback from key stakeholders is positive Feedback is predominantly positive Feedback from key stakeholders is positive

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Prime Minister and Cabinet
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Government House Wellington is made fit for the purpose for another 50 years Government House-Capital Investment

Government House - Capital Investment (M52)

Scope of Appropriation

This appropriation is limited to the conservation of the Government House, Wellington property to maintain or increase its on-going use, functionality, and value as a heritage asset; and purchases of and investment in capital items for Government House, Auckland.

Capital Expenditure

Capital Expenditure - Government House Capital Investment (M52) - Prime Minister and Cabinet
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 20,107 18,107 11,650

Reasons for Change in Appropriation

The net decrease in 2010/11 is due to baseline adjustments in 2009/10 by a carry forward from 2008/09 and a fiscally neutral transfer from 2010/11 for the anticipated progress in the conservation project.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Government House Capital Investment (M52) - Prime Minister and Cabinet
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Reduction in scope-Conservation of Government House, Wellington 2010/11 - (2,000) (2,700) - -
Conservation of Government House, Wellington 2008/09 15,000 17,000 8,137 - -
Total   15,000 15,000 5,437 - -

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Prime Minister and Cabinet
Appropriation Reporting Mechanism
Government House-Capital Investment G.48 Annual report

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 Revenue#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Revenue (M57)

ADMINISTERING DEPARTMENT: Inland Revenue Department

MINISTER RESPONSIBLE FOR INLAND REVENUE DEPARTMENT: Minister of Revenue

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

  • a total of just over $648 million on departmental output expenses including management of debt and outstanding returns, policy advice, services to inform the public about entitlements and meeting obligations, services to process obligations and entitlements, and taxpayer audit
  • a total of just under $96 million for departmental capital expenditure
  • a total of just under $4,430 million for non-departmental benefits and other unrequited expenses
  • a total of just over $9 million for non-departmental borrowing expenses, and
  • a total of just under $1,655 million for non-departmental other expenses.

The Minister of Revenue is also responsible for Crown revenue and receipts in the Vote for the 2010/11 financial year covering the following:

  • a total forecast of $48,516 million on tax revenue
  • a total forecast of $1,295 million on non-tax revenue, and
  • a total forecast of $825 million on capital receipts.

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

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Revenue
Government Priorities Government Outcomes Appropriations
  • A growth-enhancing tax system
  • Better public services
Primary:
  • Improving the economic and social wellbeing of New Zealanders
Intermediate:
  • Revenue is available to fund Government programmes through people meeting payment obligations of their own accord
  • People receive payments they are entitled to, enabling them to participate in society
Management of Debt and Outstanding Returns
Policy Advice
Services to Inform the Public About Entitlements and Meeting Obligations
Services to Process Obligations and Entitlements
Taxpayer Audit

Objectives of the Vote

Vote Revenue contributes to improving the economic and social wellbeing of New Zealanders through the provision of policy advice to Government, through the collection of revenue and through the administration of social policy programmes.

We need an effective and efficient tax administration with a stable revenue base and low compliance costs for Government to achieve its priorities. Inland Revenue is also working to continuously provide improved value for money from existing Government expenditure. Delivering efficient services that improve compliance and reduce compliance costs and being effective in our administration of social policy programmes will help give our customers the support and choices they need.

Summary of Financial Activity

Summary of Financial Activity - Revenue
  2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 479,654 532,204 612,085 658,924 642,720 635,720 648,263 - 648,263 657,061 648,435 644,667
Benefits and Other Unrequited Expenses 1,772,470 2,529,830 3,999,147 4,456,302 4,244,400 4,244,400 N/A 4,429,820 4,429,820 4,282,720 4,358,620 4,308,420
Borrowing Expenses 3,550 3,427 1,153 5,345 9,010 9,010 - 9,010 9,010 9,010 9,010 9,010
Other Expenses 1,503,851 1,562,619 993,065 2,439,044 1,711,489 1,511,489 - 1,654,650 1,654,650 1,740,500 1,816,609 1,927,188
Capital Expenditure 51,088 73,950 110,721 62,884 80,443 80,443 95,788 - 95,788 56,489 57,007 56,756
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

3,810,613 4,702,030 5,716,171 7,622,499 6,688,062 6,481,062 744,051 6,093,480 6,837,531 6,745,780 6,889,681 6,946,041

Crown Revenue and Capital Receipts

                       
Tax Revenue 46,832,541 48,571,297 51,254,848 49,045,237 45,869,000 45,869,000 N/A 48,516,000 48,516,000 51,552,000 54,109,000 57,001,000
Non-Tax Revenue 741,721 981,442 861,314 978,390 1,180,000 1,180,000 N/A 1,295,000 1,295,000 1,425,000 1,573,000 1,742,000
Capital Receipts 539,579 515,783 616,700 910,075 788,200 788,200 N/A 825,000 825,000 907,000 1,011,000 1,105,000

Total Crown Revenue and Capital Receipts

48,113,841 50,068,522 52,732,862 50,933,702 47,837,200 47,837,200 N/A 50,636,000 50,636,000 53,884,000 56,693,000 59,848,000

New Policy Initiatives

Budget Policy Intiatives - Revenue
Policy Initiative Appropriation 2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Budget 2010 tax package - implementing policy changes Management of Debt and Outstanding Returns
Departmental Output Expense
- 448 - - -
  Policy Advice
Departmental Output Expense
- 61 - - -
  Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
- 1,061 - - -
  Services to Process Obligations and Entitlements
Departmental Output Expense
- 478 - - -
  Taxpayer Audit
Departmental Output Expense
- 969 - - -
  Departmental Capital Injection
Impact on Net Asset Schedule
- 5,168 646 265 14
  Family Tax Credit PLA
Non-Departmental Benefits and Other Unrequited Expenses
- 38,649 27,377 1,178 7,407
  In-Work Tax Credit PLA
Non-Departmental Benefits and Other Unrequited Expenses
- 2,893 (3,081) (11,224) (8,912)
  Minimum Family Tax Credit PLA
Non-Departmental Benefits and Other Unrequited Expenses
- (338) (546) (618) (545)
  Parental Tax Credit PLA
Non-Departmental Benefits and Other Unrequited Expenses
- (50) (314) (390) (495)
  Bad Debt Write-Offs
Non-Departmental Other Expenses
- 400 1,700 - -
Budget 2010 tax package - additional audit and compliance activity Management of Debt and Outstanding Returns
Departmental Output Expense
- 7,758 10,304 10,712 10,712
  Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
- 4,386 5,825 6,056 6,056
  Taxpayer Audit
Departmental Output Expense
- 11,436 15,189 15,792 15,792
  Departmental Capital Injection
Impact on Net Asset Schedule
- 3,000 - - -
  Impairment of Debt
Other Expenses to be Incurred by the Crown
- (77,000) (154,000) (154,000) (146,300)
Student support savings package Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
- 24 216 142 142
  Services to Process Obligations and Entitlements
Departmental Output Expense
- 10 93 61 61
  Departmental Capital Injection
Impact on Net Asset Schedule
- 543 - - -
  Impairment of Debt Relating to Student Loans
Other Expenses to be Incurred by the Crown
(64,511) - - - -
Operating pressures contingency Management of Debt and Outstanding Returns
Departmental Output Expense
2,194 - - - -
  Policy Advice
Departmental Output Expense
367 - - - -
  Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
5,793 - - - -
  Services to Process Obligations and Entitlements
Departmental Output Expense
2,755 - - - -
  Taxpayer Audit
Departmental Output Expense
3,891 - - - -
New Zealand Productivity Commission Management of Debt and Outstanding Returns
Departmental Output Expense
- (10) (21) (22) (22)
  Services to Inform the Public About Entitlements and Meeting Obligations
Departmental Output Expense
- (29) (57) (62) (62)
  Services to Process Obligations and Entitlements
Departmental Output Expense
- (13) (26) (28) (28)
  Taxpayer Audit
Departmental Output Expense
- (18) (36) (38) (38)
Total Initiatives   (49,511) (174) (96,731) (132,176) (116,218)

Analysis of Significant Trends

Departmental Output Expenses

Departmental Output Expenses
The Trends in departmental output expenses chart is a Bar chart. Sourced from Inland Revenue. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Departmental appropriations by year and its values are: 2005 2006  Actual 479.65 million, 2006 2007  Actual 532.20 million, 2007 2008  Actual 611.71 million, 2008 2009  Actual 658.92 million, 2009 2010  Est.Actual 635.72 million, 2010 2011  Budget 648.26 million, 2011 2012  Estimated 657.06 million, 2012 2013  Estimated 648.44 million, 2013 2014  Estimated 644.68 million.
Source: Inland Revenue

Expenditure on Departmental Output Expenses has grown from just over $459 million in 2005/06 to an estimated amount of nearly $636 million in 2009/10 and a budgeted amount of just over $648 million in 2010/11. This is an expected increase of approximately $190 million from 2005/06 to 2010/11. The baseline for 2010/11 would be just under $622 million if funding for the Budget 2010 tax package was excluded.

The baseline growth in the years to 2008/09 is largely driven by the development of KiwiSaver. The funding decrease in 2009/10 is also largely attributable to the completion of the KiwiSaver development work and its move into ongoing delivery, as well as value for money savings delivered in Budget 2009.

The baselines in 2010/11 and the outyears increase as a result of funding for the Budget 2010 tax package (implementing policy changes and additional audit and compliance activity), as well as the long-term accommodation solution in Wellington. Overall, however, the baseline has declined since 2008/09 as the department manages cost pressures through finding efficiencies and delivering increased value for money for Government.

Departmental output expenses for 2010/11
The Departmental output expenses for 2010/11 chart is a Pie chart. Sourced from Inland Revenue. There are 5 series or segments. The first series is Services to Inform the Public About Entitlements and Meeting Obligations and its value is 38%, the second series is Taxpayer Audit and its value is 27%, the third series is Services to Process Obligations and Entitlements and its value is 18%, the forth series is Management of Debt and Outstanding Returns and its value is 15%, the fifth series is Policy Advice and its value is 2%.
Source: Inland Revenue

Non-Departmental Benefits and Other Unrequited Expenses

Non-Departmental Benefits and Other Unrequited Expenses
The Trends in non-departmental benefits and other unrequited expenses chart is a Bar chart. Sourced from Inland Revenue. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Benefits and Other Unrequited Expenses and its values are: 2005 2006  Actual 1772.47 million, 2006 2007  Actual 2529.83 million, 2007 2008  Actual 3999.15 million, 2008 2009  Actual 4456.30 million, 2009 2010  Est.Actual 4244.40 million, 2010 2011  Budget 4429.82 million, 2011 2012  Estimated 4282.72 million, 2012 2013  Estimated 4358.62 million, 2013 2014  Estimated 4308.42 million.
Source: Inland Revenue

Benefits and Other Unrequited Expenses includes appropriations for KiwiSaver (eg, kickstart payment, member tax credit, employer tax credit, fee subsidy and interest), Working for Families Tax Credits (eg, family tax credit, in-work tax credit, paid parental leave), research and development tax credit up to 2008/09, payroll subsidy and child support payments to custodial parents.

The increases in 2005/06 and 2006/07 are due to the introduction of new Working for Families Tax Credits. The 2007/08 year shows the first impact of KiwiSaver, with the full year impact reflected in the increase in 2008/09 (ie, first full year of the member tax credit and employer tax credit). 2009/10 and out years reflect the legislative changes to KiwiSaver (repeal of the employer tax credit and member fee subsidy and reduction in the compulsory contribution rates), a reduction in KiwiSaver kickstart payments as new membership growth declines, and the repeal of the research and development tax credit. The forecasts for Working for Families Tax Credits from 2010/11 include increases associated with the Budget 2010 tax package.

Non-Departmental Borrowing Expenses

Non-Departmental Borrowing Expenses
The Trends in non-departmental borrowing expenses chart is a Bar chart. Sourced from Inland Revenue. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Non-Departmental borrowing expenses and its values are: 2005 2006  Actual 3.550 million, 2006 2007  Actual 3.427 million, 2007 2008  Actual 1.153 million, 2008 2009  Actual 5.345 million, 2009 2010  Est.Actual 9.010 million, 2010 2011  Budget 9.010 million, 2011 2012  Estimated 9.010 million, 2012 2013  Estimated 9.010 million, 2013 2014  Estimated 9.010 million.
Source: Inland Revenue

Borrowing expenses include interest payments under the Income Equalisation, Adverse Event and Environmental Restoration Account schemes. The interest payable can vary depending on factors such as income changes in the farming, agriculture, fishing and forestry sectors in any particular year. Interest payable is also impacted by deposits set aside to mitigate adverse events and detrimental environmental affects.

Increased interest payments from 2009/10 reflect an increase in forecast deposits into the Income Equalisation and Environmental Restoration Account schemes.

Non-Departmental Other Expenses

Non-Departmental Other Expenses
The Trends in non-departmental other expenses chart is a Bar chart. Sourced from Inland Revenue. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Non-Departmental other expenses and its values are: 2005 2006  Actual 1503.85 million, 2006 2007  Actual 1562.62 million, 2007 2008  Actual 993.07 million, 2008 2009  Actual 2439.04 million, 2009 2010  Est.Actual 1511.49 million, 2010 2011  Budget 1654.65 million, 2011 2012  Estimated 1740.50 million, 2012 2013  Estimated 1816.61 million, 2013 2014  Estimated 1927.19 million.
Source: Inland Revenue

Other expenses includes appropriations relating to bad debt write-offs and the impairment of student loan, child support, general tax, and family support debt.

In 2005/06 and 2006/07 these appropriations were calculated under New Zealand Financial Reporting Standards (NZ FRS) and from 2007/08 these appropriations have been calculated under New Zealand equivalents to International Financial Reporting Standards (NZ IFRS). The large increase in Other Expenses in 2008/09 was due to high impairments for tax and student loans in that year. Impairments and bad debts are forecast to be lower in 2009/10 and outyears, compared to 2008/09.

The forecast movements from 2009/10 onwards are due to increases in the impairment of child support debt as well as bad debt write-offs for tax debt. The former is due to compounding penalties and the latter reflects the flow-on impact of the recent economic environment.

Tax Revenue

Tax Revenue
The Trends in tax revenue chart is a Bar chart. Sourced from Inland Revenue. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Tax Revenue and its values are: 2005 2006  Actual 47170.39 million, 2006 2007  Actual 48571.30 million, 2007 2008  Actual 51254.85 million, 2008 2009  Actual 49045.24 million, 2009 2010  Est.Actual 45869 million, 2010 2011  Budget 48516 million, 2011 2012  Estimated 51552 million, 2012 2013  Estimated 54109 million, 2013 2014  Estimated 57001 million.
Source: Inland Revenue

Tax revenue incorporates income taxes, goods and service tax, fringe benefit tax, withholding taxes and other revenues. The increase in actual and estimated tax revenue from 2005/06 to 2007/08 reflects economic growth. The reduction in the company tax rate, changes in personal tax and the impact of a slowing economy can be seen in 2008/09 and 2009/10. The forecasts from 2010/11 reflect a strengthening economy.

Non-Tax Revenue

Non-Tax Revenue
The Trends in non-tax revenue chart is a Bar chart. Sourced from Inland Revenue. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Non-tax revenue and its values are: 2005 2006  Actual 741.72 million, 2006 2007  Actual 981.44 million, 2007 2008  Actual 861.31 million, 2008 2009  Actual 978.39 million, 2009 2010  Est.Actual 1180 million, 2010 2011  Budget 1295 million, 2011 2012  Estimated 1425 million, 2012 2013  Estimated 1573 million, 2013 2014  Estimated 1742 million.
Source: Inland Revenue

Non-tax revenue incorporates child support collections from non-custodial parents, student loan interest unwind, and unclaimed monies. The increase from 2008/09 reflects forecast growth in child support receipts from non-custodial parents.

Capital Receipts

Capital Receipts
The Trends in capital receipts chart is a Bar chart. Sourced from Inland Revenue. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Capital Receipts and its values are: 2005 2006  Actual 539.58 million, 2006 2007  Actual 515.78 million, 2007 2008  Actual 616.70 million, 2008 2009  Actual 910.08 million, 2009 2010  Est.Actual 788.20 million, 2010 2011  Budget 825.00 million, 2011 2012  Estimated 907.00 million, 2012 2013  Estimated 1001 million, 2013 2014  Estimated 1105 million.
Source: Inland Revenue

Capital receipts include student loan capital repayments and deposits into the Adverse Event Income Equalisation, Income Equalisation and Environmental Restoration Account schemes. There was a downward trend in net payments into the Income Equalisation scheme between 2004/05 and 2006/07. However, this trend has reversed and we are seeing a significant increase in deposits into the schemes in 2008/09. The growth in receipts also reflects a forecast increase in student loan borrower repayments, which are in part, due to the voluntary repayment bonus scheme which was introduced in 2008/09.

Performance Improvement Actions

A major focus for Inland Revenue is transforming the way it works. The department will aim to improve efficiency while maintaining the integrity of the tax and social policy systems, and maximising compliance and revenue. In the future, Inland Revenue will administer a growth-enhancing tax system that:

  • is easy to comply with, at minimal cost
  • has high levels of compliance and revenue collection
  • provides customers with certainty, and
  • provides speedy responses to customers.

These long-term goals are designed to transform Inland Revenue by 2014. The department will:

  • capture only the data it needs for assessments, calculations and risk assessments
  • provide only the information customers need, when they need it, in accessible formats and, generally, electronically
  • eliminate, as far as possible, reactive enquiries from customers through clear guidance, automated transactions, increasing use of intermediaries, and customers managing their own accounts online, and
  • increase proactive compliance through using increased knowledge of its customers to intervene early, often using outbound calling, as well as through faster rulings, fewer disputes and faster resolution.

Achieving transformation will take planned and sequenced steps over the coming years. Inland Revenue's top priorities for 2010-11 include:

  • simplifying customer interactions - improving PTS and PAYE processes
  • strengthening and renewing its IT infrastructure - including modernising FIRST
  • student loan redesign
  • improved debt management
  • moving more businesses and customers to online services
  • faster rulings and improved disputes resolution, and
  • developing the skills and capability of its workforce.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Outcomes, Impacts and the link to our Appropriations

Intended Outcomes, Impacts and the link to our Appropriations - Revenue
Intermediate outcomes The impacts we seek from our interventions Appropriations
Revenue is available to fund government programmes through people meeting payment obligations of their own accord.






People receive payments they are entitled to, enabling them to participate in society.
Customers are aware of their obligations and entitlements. Services to Inform the Public about Entitlements and Meeting Obligations
Customers find it easy to comply. Services to Inform the Public about Entitlements and Meeting Obligations
Services to Process Obligations and Entitlements
Customers register when required and provide complete and accurate information. Services to Inform the Public about Entitlements and Meeting Obligations
Services to Process Obligations and Entitlements
Customers receive their timely and correct entitlements. Services to Inform the Public about Entitlements and Meeting Obligations
Services to Process Obligations and Entitlements
Policy Advice
Customers file returns or other information required and pay their due amounts on time. Management of Debt and Outstanding Returns
Taxpayer Audit
The filing and paying behaviour of non compliant customers improves. Management of Debt and Outstanding Returns
Taxpayer Audit
Customers who provide inaccurate information are deterred. Management of Debt and Outstanding Returns
Taxpayer Audit

Performance Standards Applying to Departmental Output Expenses

When reviewing and determining our performance targets for the coming year, a number of factors are taken into consideration:

  • level of funding
  • government priorities
  • strategic direction
  • current and historical performance
  • forecast performance, predicting future demand
  • policy changes, and
  • providing better public services.

This document and the Statement of Intent include previous year targets and estimated year-end actuals to provide comparison and context for our performance measures. We will also be including notes where appropriate to add further contextual information (such as the total number of debt cases on hand relating to the measure of the number of debt cases we are going to clear).

The performance targets are set out in the following sections.

Management of Debt and Outstanding Returns (M57)

Scope of Appropriation

Taking action where returns are outstanding and where payments are overdue, including providing people with assistance on the actions they need to take to meet their obligations. This includes collection on behalf of other agencies and external parties.

Expenses and Revenue

Expenses and Revenue - Management of Debt and Outstanding Returns (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 91,330 90,335 99,138
Revenue from Crown 87,210 87,210 94,895
Revenue from Other 4,120 4,120 4,243

Reasons for Change in Appropriation

The net increase in appropriation is due to a number of funding decisions, with the Budget 2010 tax package - implementing policy changes and the Budget 2010 tax package - additional audit and compliance accounting for most of the movement of $8.206 million. Other initiatives that affect the movement in this appropriation materially include the long-term accommodation solution in Wellington as well as the operating pressures contingency. The latter is funded for 2009/10 only.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Debt and Outstanding Returns (M57) - Revenue
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Unless otherwise specified, all performance measures cover the breadth of Inland Revenue's business (tax, social policy and KiwiSaver).      
Percentage of work actioned in a correct, complete, clear, timely and appropriately referenced manner that also shows an understanding of the environment. 95% 97% 95%
Number of hours we will spend proactively working with customers to file and pay post due date. n/a n/a 500,000
Number of outstanding returns filed or brought to completion by year end. 1.35m 1.42m 1.45m
Of all returns that were not filed by the due date:      
  • percentage filed or finalised within three months
n/a 60% 60%
  • percentage filed or finalised within six months
n/a 75% 75%
  • percentage filed or finalised within 12 months.
80% 80% 80%
Percentage of outstanding returns over two years old. n/a 33%  
Number of debt cases resolved (excluding child support) by year-end (see Note 1). 475,000 490,000 505,000
Percentage of collectable debt value over two years old. n/a 34%  
Percentage of new debt cases resolved within:      
  • three months
  • 12 months
of the due date for payment.
n/a
85%
64%
84%
66%
85%
Cash collected for every debt output dollar spent (see Note 2). $62.50 $50.00 $50.00
Number of child support debt cases resolved by year-end. n/a 70,000 70,000
Limit the growth in child support debt between 30 June 2010 and 30 June 2011 (excluding penalties, debt we manage on behalf of overseas agencies and uncollectable debt cases).   9.0%  
Percentage of child support assessments collected that were due over the last five years (excluding penalties, debt we manage on behalf of overseas agencies and uncollectable debt cases) (see Note 3). 90% 90% 84%

Note 1 - There were 353,300 debt cases on hand at 30 June 2009. The increase in the 2010/11 standard relates to additional funding for the 2010 Budget tax package - additional audit and compliance activity initiative.

Note 2 - Target reduction reflects lower cash expectations in the current environment and cost increases associated with debt collection.

Note 3 - Target reduction reflects change in measurement methodology from assessments due from 1992 to assessments due over the last five years.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Debt and Outstanding Returns (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
New Zealand Productivity Commission 2010/11 - (10) (21) (22) (22)
Budget 2010 tax package - implementing policy changes 2010/11 - 448 - - -
Budget 2010 tax package - additional audit and compliance activity 2010/11 - 7,758 10,304 10,712 10,712
IT/Infrastructure 2009/10 416 210 204 204 204
Revenue and cash protection and growth 2009/10 3,103 3,103 3,103 3,103 3,103
Value for money - line by line review 2009/10 (649) (649) (649) (649) (649)
Operating pressures contingency 2008/09 2,194 - - - -
Previous Government            
Implementation of Government initiatives - Budget 2008 2008/09 41 41 41 41 41
People capability - remuneration 2008/09 682 682 682 682 682
Remuneration 2007/08 1,642 1,642 1,642 1,642 1,642
Student loan borrowers overseas 2007/08 250 250 250 250 250
Protecting the integrity of the tax system 2006/07 300 300 300 300 300
Taxation of investment income and SSCWT 2006/07 613 613 613 613 613
Long-term accommodation solution in Wellington 2006/07 1,906 2,770 3,164 2,641 2,225
KiwiSaver 2006/07 5,355 5,691 6,267 6,284 6,284
Retaining people capability 2006/07 3,025 3,025 3,025 3,025 3,025
Implementation of Government initiatives - Budget 2005 2005/06 84 84 84 84 84
Implementation of Government initiatives - business package 2005/06 184 184 184 184 184
Increasing child support reciprocal debt cases in Australia 2005/06 898 898 898 898 898
Future challenges with taxation administration 2005/06 5,854 5,854 5,854 5,854 5,854

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

Policy Advice (M57)#

Scope of Appropriation

Advising on all aspects of tax policy and social policy measures that interact with the tax system. Drafting tax legislation. Negotiating and maintaining New Zealand's network of double tax agreements with other countries. Forecasting tax revenues and providing ministerial services.

Expenses and Revenue

Expenses and Revenue - Policy Advice (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,467 15,299 15,285
Revenue from Crown 15,320 15,320 15,117
Revenue from Other 147 147 168

Reasons for Change in Appropriation

The decrease in the appropriation is mainly due to the operating pressures contingency initiative affecting only 2009/10. Partly offsetting this decrease is additional funding approved for a number of initiatives, including the long-term accommodation solution in Wellington and the Budget 2010 tax package - implementing policy changes. The appropriation increased by $61,000 as a result of the latter of these initiatives.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice (M57) - Revenue
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Unless otherwise specified, all performance measures cover the breadth of Inland Revenue's business (tax, social policy and KiwiSaver).      
We will provide the Minister with:
  • tax and social policy advice as agreed in the tax policy work programme
  • draft tax bills as agreed, and support their introduction and passage through Parliament
  • budget forecasts and updates
following the Generic Tax Policy Process within agreed timeframes.
Achieved Achieved Achieved
We will ensure that we comply with the regulatory impact analysis requirements for policy advice including quality assurance assessments where required (advice is complete, convincing, consulted, clear and concise). n/a n/a Achieved
We will ensure that the Minister is satisfied with the quality of policy advice, tax legislation and revenue forecasts provided. Achieved Achieved Achieved
We will ensure that all ministerial correspondence answers are correct, complete, clear and appropriately referenced. Achieved Achieved Achieved
Percentage of ministerial correspondence responded to within 10 days. 95% 95% 95%
Percentage of parliamentary questions responded to within required timeframes. 100% 100% 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Budget 2010 tax package - implementing policy changes 2010/11 - 61 - - -
IT/Infrastructure 2009/10 13 7 6 6 6
Operating pressures contingency 2008/09 367 - - - -
Previous Government            
People capability - remuneration 2008/09 119 119 119 119 119
Implementation of Government initiatives - Budget 2008 2007/08 7 7 7 7 7
Business tax review 2007/08 52 10 10 10 10
Remuneration 2007/08 229 229 229 229 229
Long-term accommodation solution in Wellington 2006/07 360 546 678 502 362
KiwiSaver 2006/07 400 400 400 400 400
Protecting the integrity of the tax system 2006/07 800 800 800 800 800
Retaining people capability 2006/07 325 325 325 325 325
Future challenges with taxation administration 2005/06 268 268 268 268 268

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

Services to Inform the Public About Entitlements and Meeting Obligations (M57)#

Scope of Appropriation

Providing information and assistance to customers on the application of the law. Responding to customer enquiries about tax and social support programmes. Adjudication on behalf of the Commissioner on proposed taxpayer assessments. Providing binding rulings and other statements on the interpretation and application of the law administered by Inland Revenue.

Expenses and Revenue

Expenses and Revenue - Services to Inform the Public About Entitlements and Meeting Obligations (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 241,252 238,624 245,530
Revenue from Crown 238,859 238,859 242,848
Revenue from Other 2,393 2,393 2,682

Reasons for Change in Appropriation

The increase in this appropriation reflects multiple initiatives, including the Budget 2010 tax package - implementing policy changes and the Budget 2010 tax package - additional audit and compliance activity. The other initiatives that materially increase this appropriation include the long-term accommodation solution in Wellington, the tax relief for redundancy payments, the implementation of tax and KiwiSaver changes as well as the value for money initiative from Budget 2009. The increases are partly offset by the operating pressures contingency, which applies only to 2009/10.

Output Performance Measures and Standards

Output Performance Measures and Standards - Services to Inform the Public About Entitlements and Meeting Obligations (M57) - Revenue
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Unless otherwise specified, all performance measures cover the breadth of Inland Revenue's business (tax, social policy and KiwiSaver).      
Percentage of customers are given an answer that is correct, complete, clear, timely and appropriately referenced, that also shows an understanding of their environment. 88% 88% 88%
Percentage of customers who have contacted us and are satisfied with the quality of the service we provide. 85% 87% 85%
Percentage of customers who have contacted us and find they can easily access our services. n/a 85% 85%
Percentage of customers who have contacted us and find the information straight forward and easy to understand. n/a 85% 85%
Percentage of all initial telephone enquiries fully resolved at the time, requiring no follow up action. 80% 75% 80%
We will respond to customer enquiries within at least the following timeframes:      
  • percentage of paper correspondence within three weeks of receipt (see Note 4)
85% 90% 80%
  • percentage of all electronic enquiries within one week of receipt (see Note 5)
90% 89% 80%
  • percentage of telephone calls in one minute on priority queues
70% 77% 70%
  • percentage of telephone calls in four minutes on general service queues.
70% 77% 70%
Hours spent completing information, education and compliance focused advisory services. 167,000 - 193,000 168,300 175,000
Number of customer service contacts we expect to answer (see Note 5) 8.36m - 9.24m 9.36m 6.01m - 6.65m
  • including the number of child support contacts.
684,950 - 757,050 668,000 574,000 - 634,000
Number of self help service contacts we expect to receive. 13.46m - 14.88m 14.03m 17.53m - 19.37m
Percentage of adjudication cases completed within three months of receipt. n/a 80% 80%
Rulings reports, adjudication reports, public items and technical correspondence or advice that meet the applicable purpose, logic, alternatives, consultation, and practicality standards. n/a 100% 100%
Percentage of taxpayer ruling applications that have a draft ruling completed within three months of receipt. n/a n/a 90%
Percentage of non-qualifying taxpayer ruling applications that have a draft ruling completed within the timeframe agreed with the applicant (which will not be more than six months from the receipt of the application). n/a n/a 90%
Number of public items we expect to publish or finalise consideration of (including technical correspondence), giving the Commissioner's interpretation of the law. 25-45 41 25-45

Note 4 - The change in the target 2010/11 budget standard for paper correspondence and electronic enquiries response timeliness does not reflect a degradation in service, rather a change in measurement methodology, with the timeliness of registrations now being measured separately and KiwiSaver scheme provider requests for confirmation being excluded.

Note 5 - The significant drop in volumes relates to a change in the definition of correspondence, with KiwiSaver scheme provider requests for confirmation now recorded as self-help contacts.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Services to Inform the Public About Entitlements and Meeting Obligations (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
New Zealand Productivity Commission 2010/11 - (29) (57) (62) (62)
Budget 2010 tax package - implementing policy changes 2010/11 - 1,061 - - -
Budget 2010 tax package - additional audit and compliance activity 2010/11 - 4,386 5,825 6,056 6,056
Bonus for voluntary student loan repayments 2009/10 1,035 1,456 1,568 1,568 1,568
Student support savings package 2009/10 - 24 216 142 142
Value for money - line by line review 2009/10 (7,333) (5,318) (5,318) (5,318) (5,318)
IT/Infrastructure 2009/10 1,008 510 494 494 494
Implementing tax and KiwiSaver changes 2008/09 2,979 205 (886) (942) (942)
Operating pressures contingency 2008/09 5,793 - - - -
Previous Government            
People capability - remuneration 2008/09 1,934 1,934 1,934 1,934 1,934
Implementation of Government initiatives - Budget 2008 2008/09 117 117 117 117 117
Remuneration 2007/08 3,543 3,543 3,543 3,543 3,543
Improved compliance and customer experience 2007/08 902 (133) (1,483) (1,483) (1,483)
Business tax review 2007/08 2,978 2,833 2,833 2,833 2,833
Student loan borrowers overseas 2007/08 669 669 669 669 669
Budget 2008 personal tax package 2007/08 1,035 774 98 98 98
Taxation of investment income and SSCWT 2006/07 1,766 1,766 1,766 1,766 1,766
Long-term accommodation solution in Wellington 2006/07 4,011 5,973 6,943 5,660 4,635
KiwiSaver 2006/07 30,034 30,931 31,749 32,047 31,757
Retaining people capability 2006/07 4,150 4,150 4,150 4,150 4,150
Student support - enhancing and extending the integrated dataset on student loan scheme borrowers 2005/06 80 80 80 80 80
Student loan data matching 2005/06 90 90 90 90 90
Implementation of Government initiatives - Budget 2005 2005/06 139 139 139 139 139
Taxation of contractors in the fruit picking industry 2005/06 200 200 200 200 200
Implementation of Government initiatives - business package 2005/06 305 305 305 305 305
Increasing child support reciprocal debt cases in Australia 2005/06 1,205 1,205 1,205 1,205 1,205
Interest free student loans and student loan amnesty 2005/06 4,397 4,397 4,397 4,397 4,397
Future challenges with taxation administration 2005/06 7,234 7,234 7,234 7,234 7,234

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

Services to Process Obligations and Entitlements (M57)#

Scope of Appropriation

Registering tax payers, making tax assessments, assessing child support liabilities including providing a readily accessible inexpensive process for reviewing assessments, receiving and making payments to customers, processing applications and payments for social support programmes, collection of ACC Earners' levies, supplying information to other government agencies and accounting and reporting the collection of Crown revenue.

Expenses and Revenue

Expenses and Revenue - Services to Process Obligations and Entitlements (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 123,531 122,186 114,664
Revenue from Crown 98,218 98,218 90,941
Revenue from Other 25,313 25,313 23,723

Reasons for Change in Appropriation

The reduction in this appropriation reflects multiple decisions over time. The major initiatives where the funding is reducing or not continuing into 2010/11 include the tax relief for redundancy payments, transform Inland Revenue, implementing tax and KiwiSaver changes, standardised business reporting, KiwiSaver enhancements and the operating pressures contingency. The decreases are partly offset by other initiatives, most notably the bonus for voluntary student loan repayments and to a lesser extent the Budget 2010 tax package - implementing policy changes.

Output Performance Measures and Standards

Output Performance Measures and Standards - Services to Process Obligations and Entitlements (M57) - Revenue
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Unless otherwise specified, all performance measures cover the breadth of Inland Revenue's business (tax, social policy and KiwiSaver).      
Percentage of income tax assessments issued within four weeks of receipt. 80% 86% 80%
Percentage of FBT and GST assessments within three weeks of receipt. 95% 98% 95%
Percentage of paying parents issued with child support assessments within two weeks of receipt of a properly made application. 70% 85% 70%
Percentage of child support administrative review decisions issued within seven weeks of receipt of the application. 85% 90% 85%
Percentage of paid parental leave payments issued to customers on the first regular pay day following the agreed date of entitlement. 100% 100% 100%
Percentage of registrations processed within five working days of receipt. n/a 89% 90%
Correctly process all notices, statements, certificates of entitlement and loan transfer letters. 100% 98% 100%
Percentage of payments banked on the day of receipt. 100% 99% 100%
Correctly process all payments to accounts. 100% 100% 100%
Percentage of tax credit claims processed and issued within three weeks of receipt. 90% 89% 90%
Percentage of Employee Monthly Schedule (EMS) and GST returns filed electronically. n/a 30% 35%
Percentage of child support assessments collected (excluding cases we manage on behalf of overseas agencies and uncollectable debt cases) for the year ending 31 March 2011. 78% 75% 78%
Percentage of assessed paying parents (excluding cases we manage on behalf of overseas agencies and uncollectable debt cases) who pay their whole liability by the due date. 70% 70% 70%
The average cost of administering and issuing child support administrative reviews per assessment issued. n/a n/a  
Percentage of Working for Families Tax Credit (WfFTC) payments processed and issued to customers on the first regular pay period following the receipt of an application (excluding end of year payments). n/a 97% 100%
Percentage of New Zealand based student loan borrowers who pay on time. n/a 90% 85%
Percentage of KiwiSaver contributions from employees on Employer Monthly Schedules finalised by the end of the month following the due date. 90% 97% 95%
Number of new tax and KiwiSaver registrations we expect to process. n/a 518,000 481,200 - 531,900
Number of new child support applications and registrations we expect to process. 53,000 - 63,700 64,000 56,200 - 62,300
Number of new Working for Families Tax Credit (WfFTC) applications we expect to process. n/a 29,800 28,300 - 31,400
Number of returns we expect to process. 7.55m - 8.35m 8.04m 7.55m - 8.35m
Number of payments we expect to process. 6.96m - 7.69m 7.84m 7.48m - 8.27m

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Services to Process Obligations and Entitlements (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
New Zealand Productivity Commission 2010/11 - (13) (26) (28) (28)
Budget 2010 tax package - implementing policy changes 2010/11 - 478 - - -
Bonus for voluntary student loan repayments 2009/10 1,265 1,344 1,232 1,232 1,232
Student support savings package 2009/10 - 10 93 61 61
Value for money - line by line review 2009/10 (1,807) (1,140) (1,140) (1,140) (1,140)
IT/Infrastructure 2009/10 562 284 275 275 275
Transform Inland Revenue 2009/10 2000 - - - -
Revenue and cash protection and growth 2009/10 56 56 56 56 56
Implementing tax and KiwiSaver changes 2008/09 1,987 138 (590) (627) (627)
Operating pressures contingency 2008/09 2,755 - - - -
Previous Government            
Implementation of Government initiatives - Budget 2008 2008/09 62 62 62 62 62
People capability - remuneration 2008/09 1,007 1,007 1,007 1,007 1,007
Remuneration 2007/08 1,968 1,968 1,968 1,968 1,968
Tax relief for redundancy payments 2007/08 2,356 485 485 485 485
Business tax review 2007/08 707 678 678 678 678
Budget 2008 personal tax package 2007/08 691 518 66 66 66
Interest free student loans and student loan amnesty 2006/07 420 420 420 420 420
Taxation of contractors in the fruit picking industry 2006/07 891 891 891 891 891
Long-term accommodation solution in Wellington 2006/07 2,307 3,391 3,922 3,218 2,658
Taxation of investment income and SSCWT 2006/07 1,766 1,766 1,766 1,766 1,766
Retaining people capability 2006/07 3,150 3,150 3,150 3,150 3,150
Student support - Introduce bonded merit scholarships 2005/06 13 13 13 13 13
Implementation of Government initiatives - Budget 2005 2005/06 76 76 76 76 76
Implementation of Government initiatives - business package 2005/06 167 167 167 167 167
Student loan data matching 2005/06 449 449 449 449 449
Increasing child support reciprocal debt cases in Australia 2005/06 564 564 564 564 564
Future challenges with taxation administration 2005/06 4,859 4,859 4,859 4,859 4,859

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

Taxpayer Audit (M57)#

Scope of Appropriation

Identifying risks to revenue and designing and undertaking audit activities accordingly. Managing litigation of disputed tax cases.

Expenses and Revenue

Expenses and Revenue - Taxpayer Audit (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 171,140 169,276 173,646
Revenue from Crown 169,468 169,468 171,756
Revenue from Other 1,672 1,672 1,890

Reasons for Change in Appropriation

The increase in the appropriation is mainly due to funding for the Budget 2010 tax package - additional audit and compliance activity, the Budget 2010 tax package - implementing policy changes as well as the long-term accommodation solution in Wellington. This is partly offset by funding that is reducing or not being continued past 2009/10. The main of these initiatives are litigations and complex transactions audit and the operating pressures contingency.

Output Performance Measures and Standards

Output Performance Measures and Standards - Taxpayer Audit (M57) - Revenue
  2009/10 2010/11
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Unless otherwise specified, all performance measures cover the breadth of Inland Revenue's business (tax, social policy and KiwiSaver).      
Percentage of all cases completed that meet our quality standards for timeliness, communication with taxpayers, technical accuracy, case selection, case management and reporting. 90% 95% 90%
Amount we will assess per hour for all audit activity (see Note 6). $875 $2,500 $875
Months on average to complete:      
  • general audits
6 4 6
  • risk-based audits
14 10 12
  • disputed cases
18 10 15
  • evasion and fraud cases.
n/a 17 18
Percentage of all open cases (excluding aggressive tax planning cases) that are less than 24 months old. 85% 93% 90%
Number of hours we will spend on audit activities (see Note 7). 1.01m - 1.11m 1.06m 1.09m
Percentage of all timetable requirements delivered as imposed by the courts for any litigation undertaken. 95% 97% 95%
Number of litigation cases we expect to finally resolve. 75 - 100 243 75 - 100

Note 6 - The 2009/10 estimated actual result includes five structured finance cases closed this year with discrepancies of approximately $1,765 million.

Note 7 - The increase in the 2010/11 standard relates to additional funding for the 2010 Budget tax package - additional audit and compliance activity initiative.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Taxpayer Audit (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
New Zealand Productivity Commission 2010/11 - (18) (36) (38) (38)
Budget 2010 tax package - implementing policy changes 2010/11 - 969 - - -
Budget 2010 tax package - additional audit and compliance activity 2010/11 - 11,436 15,189 15,792 15,792
Value for money - line by line review 2009/10 (1,128) (1,128) (1,128) (1,128) (1,128)
IT/Infrastructure 2009/10 524 265 256 256 256
Revenue and cash protection and growth 2009/10 5,000 4,808 4,808 196 196
Operating pressures contingency 2008/09 3,891 - - - -
Previous Government            
Implementation of Government initiatives - Budget 2008 2008/09 75 75 75 75 75
People capability - remuneration 2008/09 1,258 1,258 1,258 1,258 1,258
Business tax review 2007/08 3,498 3,723 3,723 3,723 3,723
Long-term accommodation solution in Wellington 2007/08 2,920 4,295 4,921 4,091 3,430
Property audit strategy 2007/08 5,839 - - - -
Litigations and complex transaction audit 2007/08 4,000 1,000 1,000 1,000 1,000
Remuneration 2007/08 2,618 2,618 2,618 2,618 2,618
Protecting the integrity of the tax system 2006/07 400 400 400 400 400
Taxation of investment income and SSCWT 2006/07 208 208 208 208 208
KiwiSaver 2006/07 2,606 2,928 3,256 3,265 3,265
Retaining people capability 2006/07 3,750 3,750 3,750 3,750 3,750
Implementation of Government initiatives - Budget 2005 2005/06 146 146 146 146 146
Implementation of Government initiatives - business package 2005/06 321 321 321 321 321
Future challenges with taxation administration 2005/06 4,296 4,296 4,296 4,296 4,296

Where initiatives have been extended or varied in later budget cycles, the original and changed entries have been merged under a single name.

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 and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - Revenue
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Primary outcome - Improving the economic and social wellbeing of New Zealanders KiwiSaver: Kickstart payment
KiwiSaver: Member Tax Credit
KiwiSaver: Interest
KiwiSaver: Fee Subsidy
Payroll Subsidy
Secondary outcome - People receive payments they are entitled to, enabling them to participate in society Child Support Payments
Child Tax Credit
Family Tax Credit
In-Work Tax Credit
Minimum Family Tax Credit
Paid Parental Leave Payments
Parental Tax Credit

Child Support Payments PLA (M57)

Scope of Appropriation

Child support payments to custodial persons who are not dependent on the state for financial support (expenses incurred pursuant to section 141 of the Child Support Act 1991).

Expenses

Expenses - Child Support Payments PLA (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 215,000 215,000 225,000

Reasons for Change in Appropriation

The increase in the 2010/11 appropriation reflects forecast increases in both incomes and the child support customer base.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Child Support Payments PLA (M57) - Revenue
Reference Conditions
Section 141 of the Child Support Act 1991 On-payment of money received by the Commissioner by the way of child support to qualifying custodians, if the qualifying custodian of that child is not a recipient of a social security benefit.

Child Tax Credit PLA (M57)#

Scope of Appropriation

Extra assistance for low to middle income families who are not dependent on the state for financial support (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses

Expenses - Child Tax Credit PLA (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,100 4,100 3,100

Reasons for Change in Appropriation

The decrease in the 2010/11 appropriation reflects a reducing entitlement to this credit over time. The In-Work Tax Credit replaces this entitlement.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Child Tax Credit PLA (M57) - Revenue
Reference Conditions
Subpart MZ of the Income Tax Act 2007 Sets out the entitlement for and calculation of the Child Tax Credit.
Section 185(e) of the Tax Administration Act Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subpart MZ of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Family Tax Credit PLA (M57)#

Scope of Appropriation

Family Support payments made to beneficiaries and non-beneficiaries during the year (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses

Expenses - Family Tax Credit PLA (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,191,100 2,191,100 2,229,000

Reasons for Change in Appropriation

The increase in 2010/11 is due to the Budget 2010 tax package.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Family Tax Credit PLA (M57) - Revenue
Reference Conditions
Reference MD 3 of the Income Tax Act 2007 Sets out the entitlement for and calculation of the Family Tax Credit.
Section 185(e) of the Tax Administration Act Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subparts MA to MF of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Family Tax Credit PLA (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Budget 2010 tax package - implementing policy changes 2010/11 - 38,649 27,377 1,178 7,407
Working for families overpayment 2008/09 5,143 - - - -
Previous Government            
Extension of eligibility and entitlements under working for families 2005/06 500,000 500,000 500,000 500,000 500,000

In-Work Tax Credit PLA (M57)#

Scope of Appropriation

Extra assistance for low to middle income families where the person works a minimum of 20 hours per week and does not have a partner, or a person and their partner work a minimum of 30 hours per week (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses

Expenses - InWork Tax Credit PLA (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 604,000 604,000 597,080

Reasons for Change in Appropriation

The decrease in the 2010/11 appropriation reflects changes in policy and macroeconomic forecasts.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - InWork Tax Credit PLA (M57) - Revenue
Reference Conditions
Sections MD 4-10 Of the Income Tax Act 2007 Sets out the entitlement for and calculation of the In-Work Tax Credit.
Section 185(e) of the Tax Administration Act Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subparts MA to MF of the Income tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - InWork Tax Credit PLA (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Budget 2010 tax package - implementing policy changes 2010/11 - 2,893 (3,081) (11,224) (8,912)

KiwiSaver: Fee Subsidy (M57)#

Scope of Appropriation

To enable the payment of a fee subsidy to members for provider fees as set out in the KiwiSaver Act 2006.

Expenses

Expenses - KiwiSaver: Fee Subsidy (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,000 6,000 0

Reasons for Change in Appropriation

The fee subsidies were repealed effective from 1 April 2009. The amounts in 2009/10 reflect late subsidy claims from providers. These late claims are forecast to cease in 2010/11.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - KiwiSaver: Fee Subsidy (M57) - Revenue
Reference Conditions
Sections 227 and 228 of the KiwiSaver Act 2006 Provided to members at $40 per annum pro-rated for members who have been in the scheme for less than a year.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - KiwiSaver: Fee Subsidy (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Amendments to the KiwiSaver scheme 2008/09 (38,000) (51,000) (54,000) (57,000) (57,000)
Previous Government            
KiwiSaver 2007/08 23,000 28,000 28,000 28,000 28,000

KiwiSaver: Interest (M57)#

Scope of Appropriation

To enable the payment of interest on KiwiSaver contributions as set out in the KiwiSaver Act 2006.

Expenses

Expenses - KiwiSaver: Interest (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,000 6,000 6,000

Conditions on Use of Appropriation

Conditions on Use of Appropriation - KiwiSaver: Interest (M57) - Revenue
Reference Conditions
Sections 84-91 of the KiwiSaver Act 2006 Interest payable by Inland Revenue on KiwiSaver member contributions while they await being forwarded to KiwiSaver scheme providers.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - KiwiSaver: Interest (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Government            
KiwiSaver 2007/08 500 300 300 300 300

KiwiSaver: Kickstart Payment (M57)#

Scope of Appropriation

To enable the one-off payment made on opening a KiwiSaver account for members who meet the required eligibility criteria as set in the KiwiSaver Act 2006.

Expenses

Expenses - KiwiSaver: Kickstart Payment (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 377,000 377,000 293,000

Reasons for Change in Appropriation

The decrease in the 2010/11 appropriation reflects a decline in the rate of growth of new membership.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - KiwiSaver: Kickstart Payment (M57) - Revenue
Reference Conditions
Section 226 of the KiwiSaver Act 2006 This section of the Act sets out the entitlement for a $1,000 kick-start payment to each member upon joining.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - KiwiSaver: Kickstart Payment (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Government            
KiwiSaver 2007/08 151,000 103,000 103,000 103,000 103,000

KiwiSaver: Member Tax Credit (M57)#

Scope of Appropriation

To enable the payment of a tax credit to KiwiSaver members as set out in the Income Tax Act 2007.

Expenses

Expenses - KiwiSaver: Member Tax Credit (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 656,000 656,000 880,000

Reasons for Change in Appropriation

The increase in the 2010/11 appropriation reflects growth in contributing members entitled to this credit.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - KiwiSaver: Member Tax Credit (M57) - Revenue
Reference Conditions
Part MK 1-8 of the Income Tax Act 2007 Provides a member tax credit to match member contributions up to a cap of $20 per week.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - KiwiSaver: Member Tax Credit (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Amendments to the KiwiSaver scheme 2008/09 (23,000) (25,000) (26,000) (27,000) (27,000)
Previous Government            
KiwiSaver 2007/08 478,000 586,000 586,000 586,000 586,000

Minimum Family Tax Credit PLA (M57)#

Scope of Appropriation

Extra payment made to families where at least one parent is working for salary or wages (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses

Expenses - Minimum Family Tax Credit PLA (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,000 9,000 10,000

Reasons for Change in Appropriation

The increase in the 2010/11 appropriation reflects entitlement increases each year.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Minimum Family Tax Credit PLA (M57) - Revenue
Reference Conditions
Subpart ME of the Income Tax Act 2007 Sets out the entitlement for and calculation of the Family Tax Credit.
Section 185(e) of the Tax Administration Act 1994 Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subparts MA to MF of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Minimum Family Tax Credit PLA (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Budget 2010 tax package - implementing policy changes 2010/11 - (338) (546) (618) (545)
Previous Government            
Extension of eligibility and entitlements under Working for Families 2005/06 2,500 2,500 2,500 2,500 2,500

Scope of Appropriation

Paid Parental Leave Payments made to parents eligible under the Parental Leave and Employment Protection Act 1987.

Expenses

Expenses - Paid Parental Leave Payments PLA (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 153,900 153,900 162,800

Reasons for Change in Appropriation

The increase in the 2010/11 appropriation reflects higher forecasts for average weekly earnings.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Paid Parental Leave Payments PLA (M57) - Revenue
Reference Conditions
Part 7A of the Parental Leave and Employment Protection Act 1987 Establishes the entitlement for and calculation for a payment for parental leave.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Paid Parental Leave Payments PLA (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Government            
Paid parental leave - self employed 2006/07 465 465 465 465 465
Extend paid parental leave to self employed 2005/06 6,758 6,758 6,758 6,758 6,758

Parental Tax Credit PLA (M57)#

Scope of Appropriation

To enable payment of additional financial support to be made to working families for the eight week period following the birth of a child (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses

Expenses - Parental Tax Credit PLA (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 20,800 20,800 19,840

Reasons for Change in Appropriation

The decrease in the 2010/11 appropriation reflects minor forecast changes due to the growth in the Paid Parental Leave entitlement.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Parental Tax Credit PLA (M57) - Revenue
Reference Conditions
Sections MD 11-12 of the Income Tax Act 2007 Sets out the entitlement for (MD11) and calculation of (MD12) of the Parental Tax Credit.
Section 185(e) of the Tax Administration Act 1994 Establishes a permanent legislative authority to allow money payable by the Commissioner by way of credits of tax under subparts MA to MF of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Parental Tax Credit PLA (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Current Government            
Budget 2010 tax package - implementing policy changes 2010/11 - (50) (314) (390) (495)

Payroll Subsidy (M57)#

Scope of Appropriation

To enable the payment of a subsidy to a payroll agent undertaking employers' payroll-related tax compliance activities on their behalf.

Expenses

Expenses - Payroll Subsidy (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,500 1,500 4,000

Reasons for Change in Appropriation

The increase in the 2010/11 appropriation reflects a forecast increase in the take-up for this subsidy.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Payroll Subsidy (M57) - Revenue
Reference Conditions
Section RP4 of the Income Tax Act 2007 Establishes the payment of a subsidy by the Commissioner to a listed PAYE intermediary for a payroll service that they provide to an employer (RP4(1)). The calculation of the subsidy is specified in the Income Tax (Payroll Subsidy) regulations.
Section 185(g) of the Tax Administration Act 1994 Establishes a permanent legislative authority to allow money payable by the Commissioner in accordance with section RP 4 of the Income Tax Act 2007 to be paid out of the Crown Bank Account without further appropriation.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Payroll Subsidy (M57) - Revenue
Policy Initiative Year of
First
Impact
2009/10
Budgeted
$000
2010/11
Budget
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
2013/14
Estimated
$000
Previous Government            
Payroll subsidy 2006/07 42,500 42,500 42,500 42,500 42,500

Part 4 - Details for Borrowing Expenses#

Part 4.2 - Non-Departmental Borrowing Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 4.2 NonDepartmental Borrowing Expenses - Revenue
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Primary outcome: Improving the economic and social wellbeing of New Zealanders Adverse Event Interest
Environmental Restoration Account Interest
Income Equalisation Interest

Adverse Event Interest PLA (M57)

Scope of Appropriation

This appropriation is limited to interest on Adverse Event Income Equalisation Reserve accounts held by taxpayers in the farming and agriculture business (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).

Expenses

Expenses - Adverse Event Interest PLA (M57) - Revenue
  2009/10 2010/11
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10 10 10

Environmental Restoration Account Interest PLA (M57)#

Scope of Appropriation

This appropriation is limited to interest on Environmental Restoration accounts (expenses incurred pursuant to s