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 FilesCover, Contents#
Introduction#
- Purpose of Information Supporting the Estimates
- Votes and Departments in Each Sector
- Purpose and Nature of Appropriations
- Guide to Reading Information Supporting the Estimates
- Terms and Definitions
- Useful Links
Sector Overview#
- 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)#
- 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
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.
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.
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.
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.
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. |
Useful Links#
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 19 April 2010 |
Hon Bill English 27 April 2010 |
Hon Tony Ryall 19 April 2010 |
Hon Peter Dunne 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 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 16 April 2010 |
Brent Anderson 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 27 April 2010 |
Fergus Welsh 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 16 April 2010 |
Mandy Simpson 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 27 April 2010 |
Scott Scoullar 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 16 April 2010 |
Peter Carr 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 16 April 2010 |
Priya Baskaran 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 16 April 2010 |
Maria Viviers 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 16 April 2010 |
Peter J Brocklehurst 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
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:
|
Part 1.3 - Trends in the Vote#
Summary of Financial Activity
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:
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:
|
Management Control Environment:
|
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:
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:
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
Expenses and Revenue
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
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
Expenses and Revenue
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
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
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
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
Expenses
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
Capital Expenditure
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
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 | 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 |
Part 1.3 - Trends in the Vote#
Summary of Financial Activity
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
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#
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 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) -
|
Impact: Achieving policies that promote economic growth, with a focus on increasing productivity. | State Sector and Economic Performance Policy Advice and Management (MCOA) -
|
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 -
|
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) -
|
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) -
|
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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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
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
Expenses and Revenue
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
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
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
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
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
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
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:
|
|
Dimensions of Quality Policy Advice | ||
Analytically Rigorous (Analysis) | Set in a Wider Strategic Context (Applied Analysis) | Customer-focused and Persuasive (Advice) |
Relevant Frameworks
|
Strategic
|
Clear
|
Robust Reasoning and Logic
|
Practical
|
Timely
|
Evidence-based
|
Public Sector Consultation
|
Politically Aware
|
Free and Frank
|
Perspectives of Wider Stakeholders
|
Solution-focused
|
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
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
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
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
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.
|
Current and Past Policy Initiatives
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 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
Expenses
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
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
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
Expenses
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
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
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 1,000 | 1,000 | 1,000 |
Output Performance Measures and Standards
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
Expenses
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
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 504 | 504 | 516 |
Output Performance Measures and Standards
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
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#
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
|
504 | 504 | 516 | Providers annual report | Ongoing |
The New Zealand Productivity Commission
|
- | - | 655 | Providers annual report | Ongoing |
Non-Government Organisations | |||||
King Sturge International Property Consultants, London
|
1,000 | 1,000 | 1,000 | Not required | 2010 |
Aurecon Limited and other providers
|
351 | 351 | 151 | Not required | 2011 |
Regulatory Responsibility Taskforce
|
120 | 120 | - | Not required | 2010 |
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
Expenses
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 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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 230 | 230 | 230 |
Expected Results
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 500 | 500 | 500 |
Expected Results
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 50 | 50 | 50 |
Expected Results
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
Expenses
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
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
Expenses
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
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
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
Expenses
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
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
Expenses
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
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
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
Expenses
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
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
Expenses
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
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
Expenses
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
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
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 250 | 250 | 250 |
Expected Results
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 250 | 250 | 250 |
Expected Results
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#
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 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
Capital Expenditure
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 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
Capital Expenditure
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
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
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
Capital Expenditure
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
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
Capital Expenditure
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
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
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
Capital Expenditure
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
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
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#
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
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 |
Part 1.3 - Trends in the Vote#
Summary of Financial Activity
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
- 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 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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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 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
Expenses
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
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 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
Expenses
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 7,920 | 7,794 | 8,320 |
Conditions on Use of Appropriation
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
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 20 | 15 | 20 |
Conditions on Use of Appropriation
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 11,790 | 11,740 | 11,440 |
Conditions on Use of Appropriation
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
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
Expenses
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
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.
Part 1.3 - Trends in the Vote#
Summary of Financial Activity
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 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:
|
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
Expenses and Revenue
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
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
Expenses and Revenue
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
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
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 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
Capital Expenditure
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.
Part 1.3 - Trends in the Vote#
Summary of Financial Activity
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
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 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
Expenses and Revenue
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
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
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 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
Expenses
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
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 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
Capital Expenditure
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.
Part 1.3 - Trends in the Vote#
Summary of Financial Activity
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
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 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
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
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
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
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:
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
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
Expenses and Revenue
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
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
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
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 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
Expenses
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
Expenses
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
Expenses
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
Expenses
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
Expenses
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
Expenses
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
Expenses
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
Expenses
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
Expenses
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
Expenses
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 11,000 | 11,000 | 11,000 |
.
Reporting Mechanisms#
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 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
Capital Expenditure
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 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
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#
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 | 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.
Part 1.3 - Trends in the Vote#
Summary of Financial Activity
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
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 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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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
Expenses and Revenue
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
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
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 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
Expenses
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
Expenses
2009/10 | 2010/11 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 168 | 168 | 168 |
Current and Past Policy Initiatives
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
Expenses
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
Expenses
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#
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 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
Capital Expenditure
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
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 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
Capital Expenditure
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
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#
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 | Government Outcomes | Appropriations |
---|---|---|
|
Primary:
|
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.
Part 1.3 - Trends in the Vote#
Summary of Financial Activity
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
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
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.
Non-Departmental Benefits and Other Unrequited Expenses
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
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
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 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 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 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
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
Expenses and 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
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: | |||
|
n/a | 60% | 60% |
|
n/a | 75% | 75% |
|
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: | |||
|
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
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
Expenses and 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
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:
|
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
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
Expenses and 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
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: | |||
|
85% | 90% | 80% |
|
90% | 89% | 80% |
|
70% | 77% | 70% |
|
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 |
|
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
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
Expenses and 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
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
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
Expenses and 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
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: | |||
|
6 | 4 | 6 |
|
14 | 10 | 12 |
|
18 | 10 | 15 |
|
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 |