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

Purpose of Information Supporting the Estimates#

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

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

The Information Supporting the Estimates is organised into 10 volumes by sector, each of which covers one or more Votes. The scope of each sector and the allocation of Votes to a sector reflect a balancing of three desired characteristics - namely that each volume should, where possible:

• reflect natural sectors
• keep together Votes administered by the same department, and
• keep together Votes allocated to a particular select committee of the House of Representatives for examination.

The number of sectors and coverage of each sector is set in consultation with the Finance and Expenditure Committee. The 10 sectors are:

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

Votes and Departments in Each Sector#

Purpose and Nature of Appropriations#

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

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

Limits Created by Appropriations#

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

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

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

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

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

Responsibility for Appropriations#

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

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

Types of Appropriation#

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

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

Types of 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.

Appropriation Period#

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

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

Guide to Reading Information Supporting the Estimates#

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

1 Sector Overview Information#

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

2 Performance Information Relating to Appropriations in Each Vote#

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

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

Part 1 - Summary of the Vote#

The Summary of the Vote comprises:

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

• Part 1.4 Reconciliation of Changes in Appropriation Structure - a table providing a reconciliation and explanation of any changes in the structure or classification of appropriations made in the Budget year. These changes are restated for the previous financial year to facilitate comparison.

Part 2 - Details and Expected Performance for Output Expenses#

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

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

Part 3 - Details for Benefits and Other Unrequited Expenses#

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

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

Part 4 - Details for Borrowing Expenses#

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

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

Part 5 - Details and Expected Results for Other Expenses#

Part 5 provides detail about appropriations for:

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

Part 6 - Details and Expectations of Capital Expenditure#

This Part provides further details about appropriations for capital expenditure.

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

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

Information on reasons for change, conditions on use, current and past policy initiatives, and reporting mechanisms appears where applicable or material. Memorandum accounts are relevant only in Part 2. Some variations exist for non-standard appropriations, including MCOAs in Parts 2.1 and 2.2 and MYAs in Parts 2.2, 5.2 and 6.2. Furthermore performance information may not be available for some appropriations.

3 Statement of Forecast Service Performance of Departments#

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

4 Forecast Financial Statements of Departments#

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

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

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

5 Statements of Intent of Departments#

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

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

Terms and Definitions#

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

Useful Links#

The suite of Budget 2009 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2009. Documents providing guidance on the PFA and the public sector financial management system can be accessed in the Public Finance Overviews section of the Treasury's website: www.treasury.govt.nz/publications/guidance/publicfinance.

Sector Overview#

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 and 41 of the Public Finance Act 1989 and is consistent with the policies and performance expectations of the government.

Hon John Key
Responsible Minister for the Department of the Prime Minister and Cabinet
22 April 2009

Hon Bill English
Responsible Minister for the The Treasury
27 April 2009

Hon Tony Ryall
Responsible Minister for the State Services Commission
22 April 2009

Hon Peter Dunne
Responsible Minister for Inland Revenue
27 April 2009

Speaker's Statement of Responsibility#

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

Hon Dr Lockwood Smith
Speaker of the House of Representatives
Responsible Minister for the Office of the Clerk of the House of Representatives
Responsible Minister for the Parliamentary Service
27 April 2009

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 (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Maarten Wevers
Chief Executive
Department of the Prime Minister and Cabinet
22 April 2009

Brent Anderson
Corporate Services Manager
Department of the Prime Minister and Cabinet
22 April 2009
Counter-signed

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 (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

John Whitehead
Secretary to the Treasury
The Treasury
27 April 2009

John Matheson
Chief Financial Officer
The Treasury
27 April 2009
Counter-signed

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 (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Iain Rennie
State Services Commissioner
State Services Commission
22 April 2009

Mandy Simpson
Chief Financial Officer
State Services Commission
22 April 2009
Counter-signed

Inland Revenue#

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 Inland Revenue and for the Vote for which Inland Revenue is the administering department. Specifically, this information is contained in Inland Revenue's statement of forecast service performance, forecast financial statements and statement of intent.

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Robert Russell
Commissioner of Inland Revenue
Inland Revenue
27 April 2009

Scott Scoullar
Chief Financial Officer
Inland Revenue
27 April 2009
Counter-signed

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 (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Mary Harris
Clerk of the House of Representatives
Office of the Clerk of the House of Representatives
27 April 2009

Peter Carr
Clerk-Assistant (Corporate Services)
(Chief Financial Officer)
Office of the Clerk of the House of Representatives
27 April 2009
Counter-signed

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 (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Geoff Thorn
General Manager
Parliamentary Service
27 April 2009

Priya Baskaran
Financial Controller
Parliamentary Service
27 April 2009
Counter-signed

Office of the 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 Office of the Auditor-General and for the Vote for which the Office of the Auditor-General is the administering Office. Specifically, this information is contained in the Office of the 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 (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

K B Brady
Controller and Auditor-General
Office of the Auditor-General
27 April 2009

M J Viviers
Financial Controller
Office of the Auditor-General
27 April 2009
Counter-signed

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 Office. 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 (2009/10 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Beverley A Wakem
Chief Ombudsman
Office of the Ombudsmen
27 April 2009

Peter J Brocklehurst
General Manager - Corporate
Office of the Ombudsmen
27 April 2009
Counter-signed

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 2009/10 financial year covering the following:

• a total of nearly $10 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 nearly $63 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#

The Auditor-General is independent of the Government and is accountable to Parliament. 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 it should discharge its 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#

The Controller and Auditor-General (the Auditor-General) is an Officer of Parliament. The Public Audit Act 2001 sets out his mandate and responsibilities. The Auditor-General is independent of executive government and Parliament in discharging the functions of the statutory office, but answerable to Parliament for his stewardship of the public resources entrusted to him.

In New Zealand's system of government, public sector organisations 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 sector organisations are operating, and accounting for their performance, in accordance with Parliament's intentions. There is also a need for independent assurance in local government - local authorities are accountable to the public for using the resources they fund through locally raised revenue. The Auditor-General is required by statute to provide this independent assurance to both Parliament and the public.

The Office's desired overall outcome is building trust in the public sector. Our purpose is to give independent assurance to Parliament and the public about whether public entities are:

• carrying out their activities effectively, efficiently, and appropriately
• using public funds wisely, and
• reporting their performance appropriately.

Our outcome measure of trust in the effectiveness and efficiency of the public sector is that New Zealand's Transparency International Corruption Perception index score over the next three years is maintained or improved. In 2008, New Zealand's score was 9.3 on a 10-point scale, meaning it ranked first equal on the index with Denmark and Sweden.

The Auditor-General helps build trust in the public sector by providing independent assurance and advice to Parliament and the public that governance and management arrangements are suitable to address five key areas - our intermediate outcomes.

The information necessary to provide this independent advice and assurance is gathered through the Office's output classes. These output classes are:

• Audit and assurance services - performing of audit and related assurance services as required or authorised by statute. The Auditor-General is required to audit the financial statements of the Government, public entities' financial statements and other information that must be audited. The Auditor-General is also enabled to perform other services reasonable and appropriate for an auditor to perform and to audit other quasi-public entities.
• Supporting accountability to Parliament - 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.
• Performance audits and inquiries - undertaking and reporting on performance audits and inquiries relating to public entities under the Public Audit Act 2001 and to responding to requests for approvals in relation to pecuniary interest questions regulated by the Local Authorities Members' Interests Act 1968.

Part 1.3 - Trends in the Vote#

Summary of Financial Activity#

Analysis of Significant Trends#

Audit and Assurance Services Output Expenses

In 2005/06 increases in appropriations were approved for additional expenditure arising from increased audit fees agreed with entities in contract negotiations and new entities, the introduction of audits of Long-Term Council Community Plans, International Financial Reporting Standards audit requirements, and changes in activity levels within Audit New Zealand.

In 2006/07 increases in appropriations were approved to allow for an accounting treatment change which moved to a stage of completion basis of accounting for contracted audit service provider transactions. Additional appropriations were also approved to cover additional audit activity and fee increases. The drivers for these increases were the increased complexity of audits due to the adoption of International Financial Reporting Standards (IFRS), and input cost increases largely arising from worldwide shortages of qualified auditing staff.

In 2007/08 increases in appropriations were approved to allow for further costs associated with IFRS conversion audits, which are larger than earlier anticipated, particularly for Local Government and Council controlled entities.

Long-Term Council Community Plans are audited on a three-year cycle. The first round of these audits were completed in 2005/06, and a second round was undertaken in 2008/09. 2011/12 also allows for the fees associated with these audits.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Audit and Assurance Services RDA (M78)

Scope of Appropriation

Expenses and Revenue

Output Performance Measures and Standards

Audit and Assurance Services (M78)#

Scope of Appropriation#

Expenses and Revenue#

Output performance measures and standards

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

Statutory Auditor Function MCOA (M78)#

Scope of Appropriation#

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#

Output Performance Measures and Standards#

Note 1 - 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

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

Reasons for Change in Appropriation

Budgets for 2008/09 included replacement of significant computer systems.

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

Performance Information for Appropriations Vote Finance#

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

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 2009/10 financial year covering the following:

• A total of nearly $39 million for policy advice on lifting New Zealand's overall economic performance and state sector performance.
• A total of nearly $13 million for macroeconomic policy and management including fiscal management, macroeconomic, tax and fiscal forecasting; advice on fiscal policy and strategy; and fiscal reporting and departmental financial management controls including the development and application of generally accepted accounting practice to the Crown.
• A total of over $2,162 million for the payment of interest and other costs relating to the Crown's debt.
• A total of nearly $1,042 million in superannuation costs.
• A total of over $13 million for capital investment in Landcorp Farming Limited.
• A total of over $17 million for New Zealand House, London costs.
• A total of over $3 million for Taitokerau Forests Limited.
• A total of over $1 million for Treasury capital expenditure.
• A total of over $1 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 2009/10 financial year covering the following:

• A total forecast of over $2,929 million in non-tax revenue.
• A total forecast of $500,000 in capital receipts.

The Minister for Infrastructure is responsible for one appropriation in Vote Finance for the 2009/10 financial year covering the following:

• A total of nearly $5 million for policy advice and co-ordination of the government's infrastructure activities.

The Minister for Regulatory Reform is responsible for one appropriation in Vote Finance for the 2009/10 financial year covering the following:

• A total of $266,000 for the Regulatory Responsibility Taskforce.

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#

Part 1.3 - Trends in the Vote#

Summary of Financial Activity#

New Policy Initiatives#

Agreed by This Government

Agreed by the Previous Government

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 owing to movements in capital expenditure and movements in the Government Superannuation Fund unfunded liability.

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

Departmental Output Expenses

Baselines increase by nearly $6 million in 2009/10 compared to the previous year due to new funding in Budget 2009 for the delivery of policy advice on Government priorities and the Line-by-Line Review savings that were made in 2008/09.

Non-Departmental Output Expenses

Expenditure increased in 2008/09 to fund the purchase of non-commercial rail services from New Zealand Railways Corporation. Rail related appropriations are to be transferred to Vote Transport, effective 1 July 2009.

Non-Departmental Benefits and Other Unrequited Expenses

The Government Superannuation Fund Authority - Subsidies to Government Superannuation Fund Schemes 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 downwards up to 2007/08 and are broadly stable through to 2009/10 before rising in 2010/11 and outyears.

Non-Departmental Other Expenses

Expenditure was broadly stable until 2007/08. 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.

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 2004/05, the Reserve Bank received a $1,000 million capital injection to support its capacity for intervention in the foreign exchange markets.  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.

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 and 2006/07. 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. 

Crown Capital Receipts

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

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

In addition, the following rail related appropriations in Vote Finance ceased with effect from the close of 30 June 2009:

• New Zealand Railways Corporation Operating Support.
• Auckland Rail Development MYA.
• Urban Rail Development MYA.
• Rail Transport Upgrade and Growth Projects MYA.
• New Zealand Railways Corporation Wiri Island Port Rail Link MYA.

Rail related appropriations have been created in Vote Transport effective from 1 July 2009.

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

Administration of Crown Borrowing PLA (M31)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The expenses included in this appropriation, combined with the output classes Administration of Derivative Transactions, Administration of Investment of Public Money and Management of Crown Lending and Crown Bank Accounts, were previously a single annual appropriation - Debt and Related Financial Asset Management in 2008/09 and prior years (refer to Part 1.4 - Reconciliation of Changes in Appropriation Structure).

Output Performance Measures and Standards

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 2009/10 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

Treasury quality standards for policy

Quality policy advice is fit for purpose

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

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

• What point are Ministers at in their decision-making process? Can Treasury add value? What are our opportunities to have an impact?
• What result are we seeking by providing a piece of advice?
• How should the quality dimensions below be applied and balanced to achieve this result?
• What is the relative priority of this piece of work?
• What level of investment is warranted?

Quality involves continuous improvement

At the end:

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

Administration of Derivative Transactions PLA (M31)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

The expenses included in this appropriation, combined with the output classes Administration of Crown Borrowing, Administration of Investment of Public Money and Management of Crown Lending and Crown Bank Accounts, were a single annual appropriation - Debt and Related Financial Asset Management in 2008/09 and prior years (refer to Part 1.4 - Reconciliation of Changes in Appropriation Structure).

Output Performance Measures and Standards#

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#

Administration of Investment of Public Money PLA (M31)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

The expenses included in this appropriation, combined with the output classes Administration of Crown Borrowing, Administration of Derivative Transactions, and Management of Crown Lending and Crown Bank Accounts, were previously a single annual appropriation - Debt and Related Financial Asset Management in 2008/09 and prior years (refer to Part 1.4 - Reconciliation of Changes in Appropriation Structure).

Output Performance Measures and Standards#

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#

Infrastructure Advice and Co-ordination (M80)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

The expenses included in this appropriation were in the appropriation Policy Advice - Economic Performance in 2008/09 and prior years (refer to Part 1.4 - Reconciliation of Changes in Appropriation Structure). Additional funding was also approved in Budget 2009 (refer Current and Past Policy Initiatives table below).

Output Performance Measures and Standards#

Conditions on Use of Appropriation#

Current and Past Policy Initiatives#

Macro Economic Policy Advice & Management MCOA (M31)#

Scope of Appropriation#

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#

Reasons for Change in Appropriation#

The expenses included in this appropriation were part of the appropriations - Debt and Related Financial Asset Management, and Policy Advice and Management: Macroeconomic in 2008/09 and prior years (refer to Part 1.4 - Reconciliation of Changes in Appropriation Structure).

Output Performance Measures and Standards#

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#

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

Scope of Appropriation#

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#

Reasons for Change in Appropriation#

The increase in the appropriation in 2009/10 is largely due to new funding being provided in Budget 2009 for policy advice on Government priorities and some Crown Deposit Guarantee Scheme funding being returned to the Crown during 2008/09. Partly offsetting this increase are resources transferred from Policy Advice - Economic Performance, and Policy Advice - State Sector Performance output classes to the new Infrastructure Advice and Coordination output class.

Output Performance Measures and Standards#

Conditions on Use of Appropriation#

Current and Past Policy Initiatives#

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

Management of New Zealand House, London (M31)#

Scope of Appropriation

Expenses

Output Performance Measures and Standards

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

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

A one-off expense of $200,000 was budgeted for in 2008/09 to perform remedial work on redundant geothermal assets at Wairakei.

Output Performance Measures and Standards#

Management of the New Zealand Superannuation Fund (M31)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

The 2009/10 budget increase is not material.

Output Performance Measures and Standards#

Current and Past Policy Initiatives#

Regulatory Responsibility Taskforce (M81)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

The increase in expenditure in 2009/10 reflects the phasing of the Taskforce's project across the two financial years.

Output Performance Measures and Standards#

Current and Past Policy Initiatives#

Summary of Service Providers for Non-Departmental Outputs#

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

Reasons for Change in Appropriation

The amount varies with interest rates 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

Crown Residual Liabilities (M31)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The amount required is reducing over time as liabilities are resolved.

Expected Results

Geothermal Wells Fund (M31)#

Scope of Appropriation#

Expenses#

Expected Results#

Government Superannuation Appeals Board (M31)#

Scope of Appropriation#

Expenses#

Expected Results#

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

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

Custodial, investment and administration costs are lower due to a reduction in assets under fund management.

Expected Results#

Government Superannuation Fund Unfunded Liability PLA (M31)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

Current service and interest unwinding costs are forecast to be lower in 2009/10 relative to 2008/9 due to reductions in CPI indexation and discount rates.

Expected Results#

Impairment of Loans to Taitokerau Forest Limited (M31)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

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

Expected Results#

Current and Past Policy Initiatives#

National Provident Fund - Crown liability for Scheme Deficiency PLA (M31)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

The Crown guarantee has been called on due to a reduction of income in the relevant National Provident Schemes to below 4%.

Expected Results#

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

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

The increase 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#

New Zealand House, London (M31)#

Scope of Appropriation#

Expenses#

Expected Results#

Taitokerau Forests Limited Grant (M31)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

The grants commence from 2009/10.

Expected Results#

Current and Past Policy Initiatives#

Unclaimed Money PLA (M31)#

Scope of Appropriation#

Expenses#

Expected Results#

Unclaimed Trust Money PLA (M31)#

Scope of Appropriation#

Expenses#

Expected Results#

Reporting Mechanisms#

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

The Treasury - Capital Expenditure PLA (M31)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

The 2009/10 budgeted capital expenditure is less than 2008/09 largely owing to the timing of routine replacement and upgrade of the Department's information technology.

Expected Results

The budgeted capital expenditure for the 2009/10 financial year is 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 Department's Statement of Intent.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives#

Landcorp Protected Land Agreement (M31)#

Scope of Appropriation

Capital Expenditure

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 will be through the reinvestment of dividends spread over several years.  However, during 2008/09 an additional cash payment of $13.208 was made to Landcorp for a new farm transferred under the Protected Land Agreement.

Current and Past Policy Initiatives

NZ Superannuation Fund - Contributions (M31)#

Scope of Appropriation#

Capital Expenditure#

Reasons for Change in Appropriation#

The Government's fiscal management policy is to manage debt down to prudent levels.  Therefore, contributions to the Fund will be reduced while the Crown's operating balance is in deficit.

Expected Results#

Taitokerau Forests (M31)#

Scope of Appropriation#

Capital Expenditure#

Reasons for Change in Appropriation#

Loans are made in accordance with the loan agreement.

Expected Results#

Current and Past Policy Initiatives#

Reporting Mechanisms#

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 2009/10 financial year covering the following:

Departmental Appropriations

• A total of nearly $28.168 million (70% 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.
• A total of nearly $7.921 million (19% 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 nearly $4.437 million (11% of total departmental appropriations in this Vote) for managing guests of Government visits, reception 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 nearly $475,000 for Annuities to former Governors-General, Prime Ministers and their surviving spouses.
• A total of nearly $19.700 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 nearly $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#

Part 1.3 - Trends in the Vote#

Summary of Financial Activity#

New Policy Initiatives#

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

The movements in departmental and non-departmental appropriations in Vote Ministerial Services, are detailed in the Summary of Financial Activity table.

Departmental Output Expenses

The increase in 2005/06 was due to additional funding for the Upgrade of Information and Technology Infrastructure and to enhance personnel capacity. In 2006/07 increased funding provided for additional Ministerial Services staff to support the Executive and increased ministerial travel. Additional funding was provided in 2007/08 for guests of government and Sir Edmund Hillary's funeral and memorial service costs. Additional funding was provided in 2008/09 and outyears to support the Executive and for the Visits and Ceremonials Office.

Benefits and Other Unrequited Expenses

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

Non-Departmental Other Expenses

Expenditure was broadly stable until 2006/07. Expenditure increased in 2006/07 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

Support Services to Members of the Executive (M47)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The decrease in the appropriation is largely due to the one-off costs in 2008/09 due to the change of Executive.

Output Performance Measures and Standards

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

Current and Past Policy Initiatives

VIP Transport (M47)#

Scope of Appropriation#

Expenses and Revenue#

Output Performance Measures and Standards#

Current and Past Policy Initiatives#

Visits and Official Events Coordination (M47)#

Scope of Appropriation#

Expenses and Revenue#

Output Performance Measures and Standards#

Current and Past Policy Initiatives#

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#

Intended Impacts, Outcomes and Objectives

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

Scope of Appropriation

Expenses

Conditions on Use of Appropriation

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives

Depreciation (M47)

Scope of Appropriation

Expenses

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

Scope of Appropriation#

Expenses#