Information supporting the estimates of appropriations

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

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

Formats and related files

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

 

Chapters of the Economic Development and Infrastructure Sector volume of the Information Supporting the Estimates 2009/10 are available in Adobe PDF and HTML formats.

Using PDF Files

Cover, Contents#

Introduction#

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

Sector Overview#

  • Ministerial Statements of Responsibility
  • 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

Statement 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)#

Purpose of Information Supporting the Estimates#

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

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

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

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

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

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

 

Votes and Departments in Each Sector#

Votes and Departments in Each Sector
Votes by Sector Departments by Sector
Economic Development and Infrastructure Sector - B.5A Vol.1  
Vote Economic Development
Vote Commerce
Vote Communications
Vote Consumer Affairs
Vote Energy
Vote Tourism
Ministry of Economic Development
Vote Transport Ministry of Transport
Vote Labour
Vote ACC
Vote Employment
Vote Immigration
Department of Labour
Education and Science Sector - B.5A Vol.2  
Vote Education Ministry of Education
Vote Crown Research Institutes (this Vote is administered by the Treasury, which is in the Finance and Government Administration Sector.)  
Vote Education Review Office Education Review Office
Vote Research, Science and Technology Ministry of Research, Science and Technology
Environment Sector - B.5A Vol.3  
Vote Environment
Vote Climate Change
Ministry for the Environment
Vote Conservation Department of Conservation
Vote Local Government (this Vote is administered by the Department of Internal Affairs, which is in the National Identity Sector)  
Vote Parliamentary Commissioner for the Environment Parliamentary Commissioner for the Environment
External Sector - B.5A Vol.4  
Vote Foreign Affairs and Trade
Vote Official Development Assistance
Ministry of Foreign Affairs and Trade
Vote Defence Ministry of Defence
Vote Defence Force
Vote Veterans' Affairs - Defence Force
New Zealand Defence Force
Vote Customs New Zealand Customs Service
Finance and Government Administration Sector - B.5A Vol.5  
Vote Prime Minister and Cabinet Department of the Prime Minister and Cabinet
Vote Communications Security and Intelligence Government Communications Security Bureau
Vote Security Intelligence New Zealand Security Intelligence Service
Vote State Services State Services Commission
Vote Finance
Vote State-Owned Enterprises
The Treasury
Vote Revenue Inland Revenue Department
Vote Ministerial Services (this Vote is administered by the Department of Internal Affairs, which is in the National Identity Sector)  
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Ombudsmen Office of the Ombudsmen
Vote Parliamentary Service Parliamentary Service
Vote Audit Office of the Auditor-General
Health Sector - B.5A Vol.6  
Vote Health Ministry of Health
Justice Sector - B.5A Vol.7  
Vote Justice
Vote Courts
Ministry of Justice
Vote Corrections Department of Corrections
Vote Police New Zealand Police
Vote Serious Fraud Serious Fraud Office
Vote Attorney-General Crown Law Office
Vote Parliamentary Counsel Parliamentary Counsel Office
Māori, Other Populations and Cultural Sector - B.5A Vol.8  
Vote Arts, Culture and Heritage
Vote Sport and Recreation
Ministry for Culture and Heritage
Vote Statistics Statistics New Zealand
Vote National Archives Archives New Zealand
Vote National Library National Library of New Zealand
Vote Māori Affairs Te Puni Kōkiri
Vote Treaty Negotiations (this Vote is administered by the Ministry of Justice, which is in the Justice Sector)  
Vote Pacific Island Affairs Ministry of Pacific Island Affairs
Vote Women's Affairs Ministry of Women's Affairs
Vote Internal Affairs
Vote Community and Voluntary Sector
Vote Emergency Management
Vote Racing
Department of Internal Affairs
Primary Sector - B.5A Vol.9  
Vote Agriculture and Forestry
Vote Biosecurity
Ministry of Agriculture and Forestry
Vote Fisheries Ministry of Fisheries
Vote Food Safety New Zealand Food Safety Authority
Vote Lands Land Information New Zealand
Social Development and Housing Sector - B.5A Vol.10  
Vote Social Development
Vote Senior Citizens
Vote Veterans' Affairs - Social Development
Vote Youth Development
Ministry of Social Development
Vote Housing Department of Building and Housing

Purpose and Nature of Appropriations#

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

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

Limits Created by Appropriations#

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

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

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

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

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

Responsibility for Appropriations#

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

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

 

Types of Appropriation#

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

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

Types of Appropriation
Appropriation Type Transaction Status Description
Output Expenses Departmental Authorises expenses to be incurred by a department or an Office of Parliament in supplying a specified category of outputs (goods and services).
Non-Departmental Authorises expenses to be incurred by the Crown (excluding departments) in purchasing a specified category of outputs (goods and services) from Crown entities or other third parties.
Benefits and Other Unrequited Expenses Non-Departmental

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

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

Borrowing Expenses Departmental

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

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

Non-Departmental

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

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

Other Expenses Departmental

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

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

Non-Departmental

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

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

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

Capital expenditure Departmental Authorises capital expenditure to be incurred by a department or an Office of Parliament to acquire or develop assets for the use of the department.
Non-Departmental Authorises capital expenditure to be incurred by the Crown (excluding departments) to acquire or develop Crown assets, including the purchase of equity, or making a loan to a person or organisation that is not a department.
Expenses or Capital expenditure incurred by an intelligence and security department Departmental Authorises both expenses and capital expenditure to be incurred by the New Zealand Security Intelligence Service or the Government Communications Security Bureau.

Types of Output Expense Appropriations#

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

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

Standard Output Expense Appropriations

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

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

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

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

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

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

Multi-Class Output Expense Appropriations (MCOA)

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

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

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

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

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

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

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

Revenue-Dependent Appropriations (RDA)

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

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

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

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

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

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

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

Department-to-Department Appropriation (DDA)

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

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

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

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

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

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

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

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

Appropriation Period#

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

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

 

Guide to Reading Information Supporting the Estimates#

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

1 Sector Overview Information#

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

2 Performance Information Relating to Appropriations in Each Vote#

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

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

Part 1 - Summary of the Vote#

The Summary of the Vote comprises:

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

Part 2 - Details and Expected Performance for Output Expenses#

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

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

Part 3 - Details for Benefits and Other Unrequited Expenses#

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

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

Part 4 - Details for Borrowing Expenses#

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

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

Part 5 - Details and Expected Results for Other Expenses#

Part 5 provides detail about appropriations for:

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

Part 6 - Details and Expectations of Capital Expenditure#

This Part provides further details about appropriations for capital expenditure.

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

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

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

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

3 Statement of Forecast Service Performance of Departments#

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

4 Forecast Financial Statements of Departments#

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

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

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

5 Statements of Intent of Departments#

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

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

Terms and Definitions#

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

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

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

Sector Overview#

Ministerial Statements of Responsibility#

Each of us is satisfied that the information on future operating intentions provided by our respective departments and included in the Information Supporting the Estimates for the 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#

Objectives of the Vote - Audit
Outcome and Intermediate Outcomes Objective and Output Classes
Building trust in the public sector:
  • Authority: Activities have been carried out, and accountability requirements observed, within the authority granted by Parliament.
  • Waste: Taxpayers' dollars and public resources are not wasted. Governance and management arrangements ensure that resources are obtained and applied in an efficient and economical manner.
  • Probity: Public entities meet Parliament's and the public's expectations of an appropriate standard of behaviour.
  • Performance: Services and activities are carried out effectively, achieving their intentions and their desired effect on outcomes or objectives.
  • Accountability: Public entities give full and accurate public accounts.
Independent advice and assurance through our output classes:
  • audit and assurance services
  • supporting accountability to Parliament, and
  • performance audits and inquiries.

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.

Summary of Financial Activity#

Summary of Financial Activity - Audit
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 42,709 51,700 67,345 67,162 71,804 71,654 71,925 - 71,925 68,780 78,682 76,136
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - 699 716 716 716 - 716 716 716 716
Capital Expenditure 1,519 1,510 1,222 779 1,634 1,634 1,057 - 1,057 1,052 905 1,000
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

44,228 53,210 68,567 68,640 74,154 74,004 73,698 - 73,698 70,548 80,303 77,852

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 - - - - -

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

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Audit
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The responsiveness of public entities to their statutory public reporting obligations and their response to findings resulting from audits demonstrate the commitment of public entities to effective, efficient and accountable service delivery. Effectiveness, efficiency and accountability are foundations for trust in the public sector. Therefore the intended impacts of the appropriation are that:
  • The number of public entities' audited financial reports issued within statutory timeframes is improved or maintained.
  • The number of public entities' audited financial reports containing qualified opinions is reduced or maintained.
  • Public entities' acceptance of Audit New Zealand's management letter recommendations is improved (or at least maintained).
  • Central Government entities' management control environment, financial information and service performance information systems and controls are improved or maintained.
Audit and Assurance Services
Through annual audit, performance audit, and inquiry work, the Auditor-General has a broad overview of public entities both individually and throughout sectors. The Office 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 Controller and 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 Office provides for the accountability of departments and Offices of Parliament for the use of funds appropriated to them within the authority granted by Parliament.
Performance and accountability are foundations for trust in the public sector. Therefore the intended impact of the appropriation is that:
  • Select committees confirm that the Office's advice assists them in Estimates of Appropriation and financial review examinations.
  • 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. 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.
Supporting Accountability to Parliament
The Public Audit Act 2001 provides the Auditor-General discretion to undertake performance audits and inquiries to examine matters concerning a public entities' 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
  • 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, and 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.
Accountable, effectively and efficiently performing public entities that operate within their authority and according to high ethical standards are foundations for trust in the public sector. Therefore the intended impact of the appropriation is that:
  • entities accept or respond to the recommendations made in the Auditor-General's performance audits
  • entities take action in response to concerns identified in inquiry reports.
Performance Audits and Inquiries and Responsibilities under the Local Authorities Members' Interests Act 1968

Audit and Assurance Services RDA (M78)

Scope of Appropriation

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

Expenses and Revenue

Expenses and Revenue - Audit and Assurance Services RDA (M78) - Audit
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 62,607 62,607 62,728
Revenue from Crown - - -
Revenue from Other 62,607 62,607 62,728

Output Performance Measures and Standards

Output Performance Measures and Standards - Audit and Assurance Services RDA (M78) - Audit
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Outstanding audit reports at 30 June 2010 are not due to inaction on our part. Less than 10% due to inaction on the
Office's part.
Less than 10% due to inaction on the
Office's part.
Less than 10% due to inaction on the
Office's part.
Management reports are issued on a timely basis. 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. No outstanding opinions due to inaction on the Office's part.
Management reports issued within six weeks of issuing the audit report.
No outstanding opinions due to inaction on the Office's part.
Management reports issued within six weeks of issuing the audit report.
N/A as LTCCP audits occur every third year.
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). 75% satisfaction rate overall. 75% satisfaction rate overall. 75% satisfaction rate overall.
Quality assurance reviews for all appointed auditors are completed during a three-year period. 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. 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. 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.
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.
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.

Audit and Assurance Services (M78)#

Scope of Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - Audit and Assurance Services (M78) - Audit
  2008/09 2009/10
  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, above.

Statutory Auditor Function MCOA (M78)#

Scope of Appropriation#

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

Explanation for Use of Multi-Class Output Expense Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - Statutory Auditor Function MCOA (M78) - Audit
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

9,047 8,897 9,047
Performance Audits and Inquiries 6,587 6,437 6,587
Supporting Accountability to Parliament 2,460 2,460 2,460

Revenue from Crown

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

Revenue from Other

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

Output Performance Measures and Standards#

Output Performance Measures and Standards - Statutory Auditor Function MCOA (M78) - Audit
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Supporting Accountability to Parliament - Parliamentary Services

     
Reports and advice are given to select committees and Ministers. At least 2 days before an examination, unless otherwise agreed. At least 2 days before an examination, unless otherwise agreed. At least 2 days before an examination, unless otherwise agreed.
Estimates 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 1). 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. 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. At least 85% 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. 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. 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 1). Confirmed by internal quality assurance review. 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 - 21 19 - 21 19 - 21
Select committees and other stakeholders are satisfied with the proposed work programme of performance audits and special studies. As indicated by feedback on our draft work programme. 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. At least 85% At least 85% At least 85%
Our performance audit methodology reflects good practice for carrying out such audits. Assessed every 2nd 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 2nd year by the National Audit Office of Australia through a review of 2 of our performance audits. A review is scheduled for this year. Assessed every 2nd year by the National Audit Office of Australia through a review of 2
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), and the rigour of the methodology used and the balance, reasonableness of the methodology used and the resulting conclusions and recommendations. 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. 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 1). Confirmed by internal review of a selection of performance audit reports. 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. 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. 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. 80% 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 1). Confirmed by internal quality assurance review. Confirmed by internal quality assurance review. Confirmed by internal quality assurance review.

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

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

Expenses

Expenses - Remuneration of AuditorGeneral and Deputy AuditorGeneral PLA (M78) - Audit
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 716 716 716

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

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

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Controller and AuditorGeneral Capital Expenditure PLA (M78) - Audit
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 407 407 511
Intangibles 843 843 150
Other 384 384 396

Total Appropriation

1,634 1,634 1,057
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 407 407 511
Intangibles 843 843 150
Other 384 384 396

Total Appropriation

1,634 1,634 1,057

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

Summary of Financial Activity - Communications Security and Intelligence
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses - - - - - - - - - - - -
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure 35,152 37,977 42,099 40,694 49,368 49,368 53,581 N/A 53,581 62,886 51,188 51,188

Total Appropriations

35,152 37,977 42,099 40,694 49,368 49,368 53,581 - 53,581 62,886 51,188 51,188

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)

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 - Finance
Government Priorities Government Outcomes Appropriations
Greater prosperity, security and opportunities for all New Zealanders Outcome: Managing New Zealand's path through the economic downturn - reducing the impact and putting New Zealand in a strong position to take advantage of better economic times when they come.
(Minister of Finance's priorities letter 2009.)
Administration of Crown Borrowing
Administration of Derivative Transactions
Administration of Investment of Public Money
Crown Deposit Guarantee Scheme
Crown Wholesale Guarantee Facility
Economic and Tax Forecasting
Fiscal Management
Fiscal Reporting
Management of Crown Lending and Crown Bank Accounts
Policy Advice: Fiscal and Macroeconomic
  Outcome: Lifting the performance of the New Zealand economy.
(Minister of Finance's priorities letter 2009.)
Infrastructure Advice and Coordination
New Zealand Export Credit Office
Policy Advice: Economic Performance
Regulatory Responsibility Taskforce
  Outcome: Making government expenditure more productive and effective.
(Minister of Finance's priorities letter 2009.)
Policy Advice - State Sector Performance
  Objective: To meet Crown liabilities and manage Crown assets efficiently. 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
Impairment of Loans to Taitokerau Forest Limited
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 - Crown liability for Scheme Deficiency
National Provident Fund Schemes - Liability Under Crown Guarantee
New Zealand House, London
NZ Superannuation Fund - Contributions
Taitokerau Forests Limited Grant
Taitokerau Forests
Unclaimed Money
Unclaimed Trust Money

Summary of Financial Activity#

Summary of Financial Activity - Finance
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 58,357 54,554 56,333 55,315 151,524 151,524 65,496 1,921 67,417 63,586 61,856 62,121
Benefits and Other Unrequited Expenses 827,384 1,091,367 975,542 - - - N/A - - - - -
Borrowing Expenses 2,588,917 2,674,921 2,429,986 2,049,665 2,106,000 2,106,000 - 2,153,000 2,153,000 2,672,000 3,235,000 4,049,000
Other Expenses 241,452 341,937 389,004 1,367,116 1,896,846 1,896,846 - 810,297 810,297 804,408 857,642 915,343
Capital Expenditure 3,325,680 2,503,205 2,157,675 2,295,419 5,165,165 4,851,165 1,183 264,400 265,583 16,417 2,382 2,562
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

7,041,790 6,665,984 6,008,540 5,767,515 9,319,535 9,005,535 66,679 3,229,618 3,296,297 3,556,411 4,156,880 5,029,026

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 2,731,373 3,891,778 3,643,249 3,059,938 2,642,407 2,642,407 N/A 2,929,447 2,929,447 2,620,589 2,623,831 2,805,114
Capital Receipts 292,684 405,500 158,742 55,587 432,643 432,643 N/A 500 500 500 500 500

Total Crown Revenue and Capital Receipts

3,024,057 4,297,278 3,801,991 3,115,525 3,075,050 3,075,050 N/A 2,929,947 2,929,947 2,621,089 2,624,331 2,805,614

New Policy Initiatives#

Agreed by This Government

Budget Policy Intiatives - Finance
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Funding for advice on immediate Government priorities (infrastructure, regulation quality, value for money, and current economic downturn) and medium-long term issues (eg, future economic agenda, improved public sector). Policy Advice: Economic Performance
Departmental Output Expenses
- 1,216 1,947 2,420 2,695
Infrastructure Advice and Co-ordination
Departmental Output Expenses
- 1,652 1,498 1,556 1,524
Policy Advice: State Sector Performance
Departmental Output Expenses
- 1,494 1,303 1,325 1,347
Treasury Capital Injection to Support Advice on Government Priorities
Departmental Capital Contribution
- 80 - - -
Provision of short-term trade credit insurance. New Zealand Export Credit Office
Departmental Output Expenses
102 275 258 - -
Establishment of a Regulatory Responsibility Taskforce. Policy Advice: Economic Performance
Departmental Output Expenses
- 153 - - -
Regulatory Responsibility Taskforce
Non-Departmental Output Expenses
166 266 - - -
Write-off of capital charge associated with Government Shared Network. Write-off of Capital Charge Receivable
Non-Departmental Other Expenses
195 - - - -
New Zealand Railways Corporation debt facility and restructure of appropriations. New Zealand Railways Corporation Loans
Non-Departmental Capital Expenditure
140,000 - - - -
Crown Rail Operator Equity Injection
Non-Departmental Capital Expenditure
(13,226) - - - -
ONTRACK Equity Injection
Non-Departmental Capital Expenditure
(18,550) - - - -
Rail Transport Upgrade and Growth Projects
Non-Departmental Capital Expenditure
17,326 - - - -
Taranaki Whanui Treaty Settlement loan for the purchase of Shelly Bay properties. Port Nicholson Block Settlement Trust Loan
Non-Departmental Capital Expenditure
15,268 - - - -
Savings from Line-by-Line Review. Management of Liabilities, Claims Against the Crown and Crown Properties
Departmental Output Expenses
(3,170) - - - -
Crown Deposit Guarantee Scheme
Departmental Output Expenses
(2,125) (700) (200) - -
Crown Wholesale Guarantee Facility
Departmental Output Expenses
(1,200) - - - -
Crown Deposit Guarantee Scheme
Departmental Capital Contribution
(600) - - - -

Agreed by the Previous Government

Budget Policy Intiatives - Finance
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Implementing a more coordinated and integrated Regulated Policy Quality Assurance system. Policy Advice: Economic Performance
Departmental Output Expenses
970 1,379 1,379 1,379 1,379
Crown deposit guarantee scheme implementation and monitoring. Crown Deposit Guarantee Scheme
Departmental Output Expenses
4,780 4,420 900 -
 
-
Crown Deposit Guarantee Scheme
Departmental Capital Contribution
800 - - - -
Crown wholesale guarantee facility implementation and monitoring. Crown Wholesale Guarantee Facility
Departmental Output Expenses
1,740 1,540 655 225 225
Identity Verification Service departmental operational and capital levies. Identity Verification Service: Adjustment to Dept Levy Contribution & Impact on Dept Appropriation
Departmental Output Expenses
- (296) - -  
Identity Verification Service: Adjustment to Dept Levy Contribution and Impact on Dept Appropriation
Departmental Capital Contribution
- (86) - - -
Changes to appropriations to purchase non-commercial rail services from New Zealand Railways Corporation. New Zealand Railways Corporation Operating Support
Non-Departmental Output Expenses
90,000 - - - -
ONTRACK  Operating and Maintenance costs
Non-Departmental Other Expenses
(21,000) - - - -
Changes to appropriations to provide funding for the upgrade, renewal and maintenance of New Zealand Railways Corporation's assets. Rail Transport Upgrade and Growth Projects
Non-Departmental Other Expenses
121,000 - - - -
National Rail Network Improvements
Non-Departmental Other Expenses
(46,974) - - - -
ONTRACK Loans
Non-Departmental Capital Expenditure
(103,005) - - - -
New Zealand Railways Corporation Transaction Costs of Purchasing Toll NZ Limited. New Zealand Railways Corporation Transaction Costs of Purchasing Toll NZ Limited
Non-Departmental Other Expenses
5,000 - - - -
New Zealand Railways Corporation Wiri Inland Port rail link construction. New Zealand Railways Corporation Wiri Inland Port Rail Link
Non-Departmental Other Expenses
6,000 - - - -
Renegotiation of Crown loan to Taitokerau Forests Limited. Impairment of Loans to Taitokerau Forests Limited
Non-Departmental Other Expenses
1,700 1,400 800 800 800
Taitokerau Forests Limited Grant
Non-Departmental Other Expenses
- 300 200 300 200
Taitokerau Forests Limited Loan Write-Down
Non-Departmental Other Expenses
37,000 - - - -
Taitokerau Forests
Non-Departmental Capital Expenditure
340 1,400 800 800 800
Timberlands West Coast equity injection. Timberlands West Coast Equity Injection
Non-Departmental Capital Expenditure
3,800 - - - -
Debt facility for KiwiRail. Crown Rail Operator Loans
Non-Departmental Capital Expenditure
140,000 - - - -
Initial KiwiRail capital expenditure. Crown Rail Operator Equity Injection
Non-Departmental Capital Expenditure
20,000 20,000 20,000 20,200 -
Public Trust capital injection. Public Trust Capital Injection
Non-Departmental Capital Expenditure
20,000 - - - -
New Zealand Railways Corporation increase in capital for the purchase of the Crown Rail Operator. New Zealand Railways Corporation Increase in Capital for the Purchase of the Crown Rail Operator
Non-Departmental Capital Expenditure
690,000 - - - -
             

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#

Reconciliation of Changes in Appropriation Structure - Finance
2008/09 Structure -
Appropriations that have been
Changed
2008/09
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been
Transferred
Amount
Moved
$000
2009/10 Structure -
Appropriations affected by the
Changes in Appropriation
Structure
2008/09
(Restated)
$000
2009/10
$000

Departmental Output Expenses

           
Debt and Related Financial Asset Management 8,404 Transferred to Administration of Crown Borrowing 3,362 Administration of Crown Borrowing 3,362 3,260
    Transferred to Administration of Derivative Transactions 4,015 Administration of Derivative Transactions 4,015 3,893
    Transferred to Administration of Investment of Public Money 1,027 Administration of Investment of Public Money 1,027 996
    Transferred from Debt and Related Financial Asset Management (8,404)      
Debt and Related Financial Asset Management 934 Transferred to Management of Crown Lending and Crown Bank Accounts 934 Crown Lending and Crown Bank Accounts 934 906
    Transferred from Debt and Related Financial Asset Management (934)      
Policy Advice and Management: Macroeconomic 12,761 Transferred to Fiscal Management 2,424 Fiscal Management 2,424 2,422
    Transferred to Fiscal Reporting 3,574 Fiscal Reporting 3,574 3,570
    Transferred to Economic and Tax Forecasting 2,680 Economic and Tax Forecasting 2,680 2,677
    Transferred to Policy Advice: Fiscal and Macroeconomic 4,083 Policy Advice: Fiscal and Macroeconomic 4,083 4,079
    Policy Advice and Management: Macroeconomic (12,761)      
Policy Advice - Economic Performance 15,978 Transferred to Infrastructure Advice and Coordination 2,397 Infrastructure Advice and Coordination 2,952 4,942
Policy Advice - State Sector Performance 12,157   555      
    Transferred from Policy Advice - Economic Performance (2,397) Policy Advice - Economic Performance 13,581 15,465
    Transferred from Policy Advice - State Sector Performance (555) Policy Advice - State Sector Performance 11,602 14,062
Total Changes in Appropriations     -   - -

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

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
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
Outcome: Improved overall economic performance.
Impact: Enhancing national infrastructure planning and ensuring higher-quality asset management.
Infrastructure Advice and Coordination
Outcome: A stable and sustainable macroeconomic environment.
Impact: Contributing to Budget decisions that are conducive to achieving short-term macroeconomic stability and meeting long-term fiscal challenges.
Macro Economic Policy Advice and Management MCOA -
  • Economic and Tax Forecasting output class
  • Fiscal Management output class
  • Fiscal Reporting output class
  • Management of Crown Lending and Crown Bank Accounts output class
  • Policy Advice: Fiscal and Macroeconomic output class
Outcome: Improved overall economic performance.
Impact: Maintaining a robust and efficient financial sector.
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Crown Deposit Guarantee Scheme output class
  • Crown Wholesale Guarantee Facility output class
Objective: To meet Crown liabilities and manage Crown assets efficiently.
Impact: Minimising Crown financial risk within the bounds of Government objectives.
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Management of Claims Against the Crown, Contractual Liabilities and Crown Properties output class
Outcome: Improved overall economic performance.
Impact: Increasing the level of export activity within the bounds of the Government's financial risk parameters set out in the delegation agreement.
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • New Zealand Export Credit Office output class
Outcome: Improved overall economic performance.
Impact: Achieving policies that promote economic growth, with a focus on increasing productivity.
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Policy Advice - Economic Performance output class
Outcome: Improved state sector performance.
Impact: Ensuring the work of the state sector represents value for money in achieving the Government's priorities and generating the maximum possible benefit for taxpayers for a given level of expenditure.
State Sector and Economic Performance Policy Advice and Management (MCOA) -
  • Policy Advice - State Sector Performance output class

Administration of Crown Borrowing PLA (M31)

Scope of Appropriation

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

Expenses and Revenue

Expenses and Revenue - Administration of Crown Borrowing PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 3,260
Revenue from Crown - - 3,200
Revenue from Other - - 60

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

Output Performance Measures and Standards - Administration of Crown Borrowing PLA (M31) - Finance
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All policy outputs comply with the Treasury's Quality Standards for Policy (refer to Conditions on Use of Appropriation, below), as assessed by the Minister three times during the year. N/A Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations
Compliance with Risk management policies and parameters for portfolio management and debt issuance. N/A 100% 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). N/A Targets met $40 to $60 million
Average value at risk (VaR) for the tactical portfolios, at a confidence level of 95%. N/A Average monthly VaR is less than $1.4 million Average monthly VaR is less than $1.4 million
Losses incurred from the credit-related sale of securities, or from default by a counter-party. N/A No losses No losses
Number of settlement errors, and financial value of losses arising from settlement errors. N/A No more than two errors; losses do not exceed $3,000 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 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?
Dimensions of quality policy advice - Finance
Dimensions of Quality Policy Advice

Analytically Rigorous (Analysis)

Set in a Wider Strategic Context (Applied Analysis)

Customer-focused and Persuasive (Advice)

Relevant Frameworks

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

Strategic

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

Clear

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

Robust Reasoning and Logic

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

Practical

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

Timely

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

Evidence-based

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

Public Sector Consultation

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

Politically Aware

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

Free and Frank

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

Perspectives of Wider Stakeholders

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

Solution-focused

  • We are proactive, anticipating, as well as responding to, Ministers' needs. Advice suggests a clear way forward ("Here is what you can do" as well as "Here is a problem") and includes a range of practical options (first best advice, but also second and third).
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#

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

Expenses and Revenue#

Expenses and Revenue - Administration of Derivative Transactions PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 3,893
Revenue from Crown - - 3,819
Revenue from Other - - 74

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#

Output Performance Measures and Standards - Administration of Derivative Transactions PLA (M31) - Finance
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All policy outputs comply with the Treasury's Quality Standards for Policy (refer to Conditions on Use of Appropriation, below), as assessed by the Minister three times during the year. N/A Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations
Compliance with risk management policies and parameters for portfolio management and debt issuance. N/A For other standards in this output class see the standards listed in the Administration of Crown Borrowing PLA (M31) Output Class above

Notes#

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

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

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Administration of Derivative Transactions PLA (M31) - Finance
Reference Conditions
Quality Standards for Policy Advice Refer to Administration of Crown Borrowing output expense above.

Administration of Investment of Public Money PLA (M31)#

Scope of Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - Administration of Investment of Public Money PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 996
Revenue from Crown - - 978
Revenue from Other - - 18

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#

Output Performance Measures and Standards - Administration of Investment of Public Money PLA (M31) - Finance
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
All policy outputs comply with the Treasury's Quality Standards for Policy (refer to Conditions on Use of Appropriation, below), as assessed by the Minister three times during the year. N/A Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations
Compliance with Risk management policies and parameters for portfolio management and debt issuance. N/A For other standards in this output class see the standards listed in the Administration of Crown Borrowing PLA (M31) output class above

Notes#

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

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

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Administration of Investment of Public Money PLA (M31) - Finance
Reference Conditions
Quality Standards for Policy Advice Refer to Administration of Crown Borrowing output expense above.

Infrastructure Advice and Co-ordination (M80)#

Scope of Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - Infrastructure Advice and Coordination (M80) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 4,942
Revenue from Crown - - 4,885
Revenue from Other - - 57

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#

Output Performance Measures and Standards - Infrastructure Advice and Coordination (M80) - Finance
  2008/09 2009/10
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. N/A N/A Rated as meeting and frequently exceeding expectations
Successful introduction of Infrastructure Bill by December 2009. N/A N/A Achieved
Successful completion and publication of first National Infrastructure Plan. N/A N/A Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Infrastructure Advice and Coordination (M80) - Finance
Reference Conditions
Quality Standards for Policy Advice Refer to Administration of Crown Borrowing output expense above.
Infrastructure Bill This is a new one-off measure for 2009/10.
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.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Infrastructure Advice and Coordination (M80) - Finance
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Infrastructure advice and coordination. 2009/10 - 1,652 1,498 1,556 1,524

Macro Economic Policy Advice & Management MCOA (M31)#

Scope of Appropriation#

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

Explanation for Use of Multi-Class Output Expense Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - Macro Economic Policy Advice & Management MCOA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 13,654
Economic and Tax Forecasting - - 2,677
Fiscal Management - - 2,422
Fiscal Reporting - - 3,570
Management of Crown Lending and Crown Bank Accounts - - 906
Policy Advice: Fiscal and Macroeconomic - - 4,079

Revenue from Crown

- - 13,403
Economic and Tax Forecasting - - 2,627
Fiscal Management - - 2,378
Fiscal Reporting - - 3,504
Management of Crown Lending and Crown Bank Accounts - - 890
Policy Advice: Fiscal and Macroeconomic - - 4,004

Revenue from Other

- - 251
Economic and Tax Forecasting - - 50
Fiscal Management - - 44
Fiscal Reporting - - 66
Management of Crown Lending and Crown Bank Accounts - - 16
Policy Advice: Fiscal and Macroeconomic - - 75

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#

Output Performance Measures and Standards - Macro Economic Policy Advice & Management MCOA (M31) - Finance
  2008/09 2009/10
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. N/A Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations
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. N/A Achieved Achieved

Fiscal Management

     
Advice and processes required as part of annual budget process 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). N/A Achieved Achieved

Fiscal Reporting

     
Audit opinion issued by the Controller and Auditor-General on the Financial Statements of Government. N/A 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). N/A Less than 3% 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. N/A Achieved Achieved

Management of Crown Lending and Crown Bank Accounts

     
Value-added for Crown lending meets target level. N/A $15-20 million $15-20 million
Average value at risk (VaR) for Crown lending, at a 95% confidence level. N/A Average monthly VaR does not exceed $1.4 million Average monthly VaR does not exceed $1.4 million
Compliance with risk management policies and parameters for management of Crown lending and Crown bank accounts. N/A No compliance breaches No compliance 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#

Conditions on Use of Appropriation - Macro Economic Policy Advice & Management MCOA (M31) - Finance
Reference Conditions
Quality Standards for Policy Advice Refer to Administration of Crown Borrowing output expense above
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.
  • Annual review of process stakeholders completed quarter one to determine changes to improve future processes.

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

Scope of Appropriation#

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

Explanation for Use of Multi-Class Output Expense Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

36,691 36,691 38,751
Crown Deposit Guarantee Scheme 1,661 1,661 3,720
Crown Wholesale Guarantee Facility 1,878 1,878 1,540
Management of Liabilities, Claims Against the Crown and Crown Properties 2,740 2,740 2,093
New Zealand Export Credit Office 2,277 2,277 1,871
Policy Advice: Economic Performance 15,978 15,978 15,465
Policy Advice: State Sector Performance 12,157 12,157 14,062

Revenue from Crown

36,090 36,090 38,216
Crown Deposit Guarantee Scheme 1,642 1,642 3,720
Crown Wholesale Guarantee Facility 1,849 1,849 1,540
Management of Liabilities, Claims Against the Crown and Crown Properties 2,670 2,670 2,057
New Zealand Export Credit Office 2,242 2,242 1,842
Policy Advice: Economic Performance 15,726 15,726 15,227
Policy Advice: State Sector Performance 11,961 11,961 13,830

Revenue from Other

601 601 535
Crown Deposit Guarantee Scheme 19 19 -
Crown Wholesale Guarantee Facility 29 29 -
Management of Liabilities, Claims Against the Crown and Crown Properties 70 70 36
New Zealand Export Credit Office 35 35 29
Policy Advice: Economic Performance 252 252 238
Policy Advice: State Sector Performance 196 196 232

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#

Output Performance Measures and Standards - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

All Classes of Outputs Within the Appropriation

     
All policy advice 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 Rated as meeting and frequently exceeding expectations Rated as meeting and frequently exceeding expectations

Crown Deposit Guarantee Scheme and Crown Wholesale Guarantee Facility

     
No unnecessary delays in processing applications. N/A Achieved Achieved
Development and implementation of an overall plan for managing the Crown interests including default events. N/A Achieved Achieved
Active monitoring of guaranteed institutions is undertaken to minimise Crown exposure. N/A Achieved Achieved
Treasury actively manages the Crown interests in the event of a specific default. N/A Within 7 days of default Within 7 days of default

Management of Liabilities, Claims Against the Crown and Crown Properties

     
Management and resolution of liabilities and claims within parameters set by Ministers. 100% 100% 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 medium to long term credit insurance policies. $77 million $32.9 million $46.0 million
Value of new US contract bonds. $24 million $84.9 million $82.0 million
Value of new non-US contract bonds. $8 million - $10.0 million
Value of new working capital guarantees. $5 million $1.8 million $5.0 million
Value of short-term trade credit guarantees. N/A $6.6 million $48.8 million

Policy Advice: Economic Performance

     
Regulatory Impact Analysis: Number of significant Regulatory Impact Statements assessed. N/A 12 20

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. N/A Achieved Achieved

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
Reference Conditions
Quality Standards for Policy Advice Refer to Administration of Crown Borrowing Output Expense Above
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, and has yet to be operating for a full year. These estimates are based on our first five months of operation.
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; accountability documents.
  • Treasury advice across votes enables the Government to deliver the Budget consistent with the Budget Policy Statement.
  • Treasury advice across votes drives better value for money and higher performance in the public sector to help deliver the Government's policy objectives, cost-effectively.
  • All statutory requirements of the Public Finance Act are met.
  • Annual review is undertaken with stakeholders to identify changes to improve future processes.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Treasury advice on Government priorities. 2009/10 - 2,710 3,250 3,745 4,042
Secretariat to the Regulatory Responsibility Taskforce. 2009/10 - 153 - - -
Provision of short-term trade credit insurance. 2008/09 102 275 258 - -
Crown deposit guarantee scheme implementation and monitoring. 2008/09 4,780 4,420 900 - -
Crown wholesale guarantee facility implementation and monitoring. 2008/09 1,740 1,540 655 225 225
Implementing a more co-coordinated and integrated Regulated Policy Quality Assurance system. 2008/09 970 1,379 1,379 1,379 1,379
Costs of negotiating with Atihau-Whanganui Incorporation in respect to claimed Maori vested land lease losses. 2008/09 450 - - - -
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 80 140 140 - -
New Zealand Export Credit Office development of US contract bonds and trade finance export products. 2007/08 438 401 416 - -
Extension of the New Zealand Export Credit Office US contract bond product. 2007/08 350 350 350 - -

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

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

Management of New Zealand House, London (M31)#

Scope of Appropriation

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

Expenses

Expenses - Management of New Zealand House, London (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,000 1,000 1,000

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of New Zealand House, London (M31) - Finance
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Optimise New Zealand House rental revenue. Achieved Achieved Achieved
Occupancy rates maximised. Achieved Achieved Achieved
Maintain the property to support the achievement of revenue and occupancy objectives. Achieved Achieved Achieved

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

Scope of Appropriation#

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

Expenses#

Expenses - Management of the Crown's Obligations for Geothermal Wells (M31) - Finance
  2008/09 2009/10
  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 2008/09 to perform remedial work on redundant geothermal assets at Wairakei.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of the Crown's Obligations for Geothermal Wells (M31) - Finance
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Monitor and maintain wells through regular inspections and completion of standard maintenance actions. Achieved Achieved Achieved

Management of the New Zealand Superannuation Fund (M31)#

Scope of Appropriation#

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

Expenses#

Expenses - Management of the New Zealand Superannuation Fund (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 487 487 504

Reasons for Change in Appropriation#

The 2009/10 budget increase is not material.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of the New Zealand Superannuation Fund (M31) - Finance
  2008/09 2009/10
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. Achieve Achieve Achieve

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Management of the New Zealand Superannuation Fund (M31) - Finance
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
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 2,044 - - -

Regulatory Responsibility Taskforce (M81)#

Scope of Appropriation#

This appropriation is limited to the fees and expenses of members of the Taskforce appointed to carry forward work on a Regulatory Responsibility Bill, and to fees and expenses for any legal and other advice that the Taskforce may commission.

Expenses#

Expenses - Regulatory Responsibility Taskforce (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 166 166 266

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#

Output Performance Measures and Standards - Regulatory Responsibility Taskforce (M31) - Finance
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Report on the existing Regulatory Responsibility Bill, including making recommendations on amendments, supporting arrangements and a draft Bill. N/A - Report completed
Report to be completed within six months of the Regulatory Responsibility Taskforce establishment. N/A - Achieved

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Regulatory Responsibility Taskforce (M31) - Finance
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Establishment of a Regulatory Responsibility Taskforce. 2008/09 166 266 - - -

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Finance
Provider 2008/09
Budgeted
$000
2008/09
Estimated Actual
$000
2009/10
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment

Crown Entities

         
The Guardians of New Zealand Superannuation
  • Guardians of New Zealand Superannuation
487 487 504 Provider's annual report Ongoing

Non-Government Organisations

         
King Sturge International Property Consultants, London
  • Management of New Zealand House
1,000 1,000 1,000 Not required 2010
Connell Wagner Limited and other providers
  • Management of Residual Geothermal Liabilities
351 351 151 Not required 2011
Regulatory Responsibility Taskforce
  • Regulatory Responsibility Taskforce
166 166 266 Not required 2010

The above table summarises funding to be allocated through Vote Finance to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.

Part 4 - Details for Borrowing Expenses#

Part 4.2 - Non-Departmental Borrowing Expenses#

Debt Servicing PLA (M31)

Scope of Appropriation

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

Expenses

Expenses - Debt Servicing PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,106,000 2,106,000 2,153,000

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

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

Crown Residual Liabilities (M31)

Scope of Appropriation

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

Expenses

Expenses - Crown Residual Liabilities (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 674 674 230

Reasons for Change in Appropriation

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

Expected Results

Expected Results - Crown Residual Liabilities (M31) - Finance
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Settlements are within limits agreed by the Minister. Achieved Achieved Achieved

Geothermal Wells Fund (M31)#

Scope of Appropriation#

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

Expenses#

Expenses - Geothermal Wells Fund (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 500 500 500

Expected Results#

Expected Results - Geothermal Wells Fund (M31) - Finance
  2008/09 2009/10
  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 year) No events in year Achieve for all such events (no more than one expected in year)

Government Superannuation Appeals Board (M31)#

Scope of Appropriation#

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

Expenses#

Expenses - Government Superannuation Appeals Board (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 50 50 50

Expected Results#

Expected Results - Government Superannuation Appeals Board (M31) - Finance
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Board members' fees and disbursements are consistent with Cabinet Office Guidelines. Achieve Achieve Achieve

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

Scope of Appropriation#

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

Expenses#

Expenses - Government Superannuation Fund Authority Crown's Share of Expenses PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 23,500 23,500 19,692

Reasons for Change in Appropriation#

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

Expected Results#

Expected Results - Government Superannuation Fund Authority Crown's Share of Expenses PLA (M31) - Finance
  2008/09 2009/10
  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. $23.5 million $23.5 million $19.692 million

Government Superannuation Fund Unfunded Liability PLA (M31)#

Scope of Appropriation#

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

Expenses#

Expenses - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 968,610 968,610 676,025

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#

Expected Results - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
  2008/09 2009/10
  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

Impairment of Loans to Taitokerau Forest Limited (M31)#

Scope of Appropriation#

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

Expenses#

Expenses - Impairment of Loans to Taitokerau Forest Limited (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,700 1,700 1,400

Reasons for Change in Appropriation#

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

Expected Results#

Expected Results - Impairment of Loans to Taitokerau Forest Limited (M31) - Finance
  2008/09 2009/10
  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 Unqualified audit opinion Unqualified audit opinion

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Impairment of Loans to Taitokerau Forest Limited (M31) - Finance
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Renegotiation of Crown loan to Taitokerau Forests Limited. 2008/09 1,700 1,400 800 800 800

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

Scope of Appropriation#

This appropriation is limited to the Crown's liability for deficiency in the accounts of National Provident Fund schemes established pursuant to section 38A(6) of the National Provident Fund Act 1950, authorised by section 72 of the National Provident Fund Restructuring Act 1990.

Expenses#

Expenses - National Provident Fund Crown liability for Scheme Deficiency PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 33,200 33,200 33,400

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#

Expected Results - National Provident Fund Crown liability for Scheme Deficiency PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Crown's liability for deficiency in the accounts of the National Provident Fund schemes correctly recorded in the Financial Statements of the Government. N/A Unqualified audit opinion Unqualified audit opinion

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

Scope of Appropriation#

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

Expenses#

Expenses - National Provident Fund Schemes Liability Under Crown Guarantee PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 71,000 71,000 62,000

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#

Expected Results - National Provident Fund Schemes Liability Under Crown Guarantee PLA (M31) - Finance
  2008/09 2009/10
  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 Achieved Achieved

New Zealand House, London (M31)#

Scope of Appropriation#

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

Expenses#

Expenses - New Zealand House, London (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,200 16,200 16,200

Expected Results#

Expected Results - New Zealand House, London (M31) - Finance
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Net rental from commercial space is optimised. Achieve Achieve Achieve
New Zealand House is maintained to provide office accommodation of a suitable standard for New Zealand Government entities in London. Achieve Achieve Achieve

Taitokerau Forests Limited Grant (M31)#

Scope of Appropriation#

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

Expenses#

Expenses - Taitokerau Forests Limited Grant (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 300

Reasons for Change in Appropriation#

The grants commence from 2009/10.

Expected Results#

Expected Results - Taitokerau Forests Limited Grant (M31) - Finance
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Grant payment is made in accordance with the Taitokerau Forests Limited agreement. N/A - Achieved

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Taitokerau Forests Limited Grant (M31) - Finance
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Renegotiation of Crown loan to Taitokerau Forests which also included a grant to maintain and develop the forests. 2009/10 - 300 200 300 200

Unclaimed Money PLA (M31)#

Scope of Appropriation#

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

Expenses#

Expenses - Unclaimed Money PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 250 250 250

Expected Results#

Expected Results - Unclaimed Money PLA (M31) - Finance
  2008/09 2009/10
  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. Achieve Achieve Achieve

Unclaimed Trust Money PLA (M31)#

Scope of Appropriation#

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

Expenses#

Expenses - Unclaimed Trust Money PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 250 250 250

Expected Results#

Expected Results - Unclaimed Trust Money PLA (M31) - Finance
  2008/09 2009/10
  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. Achieve Achieve Achieve

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
Crown Residual Liabilities Not required
Geothermal Wells Fund Not required
Government Superannuation Appeals Board Not required
Government Superannuation Fund Authority - Crown's Share of Expenses Annual report of the Government Superannuation Fund Authority
Government Superannuation Fund Unfunded Liability Not required
Impairment of Loans to Taitokerau Forests Limited Not required
National Provident Fund - Crown liability for Scheme Deficiency 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
Taitokerau Forests Limited Loan Write-Down Not required
Unclaimed Money Not required
Unclaimed Trust Money Not required

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

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.1 Departmental Capital Expenditure - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Maintain and upgrade capability through routine replacement of the Treasury's information technology. The Treasury - Capital Expenditure PLA (M31)

The Treasury - Capital Expenditure PLA (M31)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - The Treasury Capital Expenditure PLA (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,428 1,428 801
Intangibles 579 579 382
Other - - -

Total Appropriation

2,007 2,007 1,183
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,428 1,428 801
Intangibles 579 579 382
Other - - -

Total Appropriation

2,007 2,007 1,183

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#

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
To compensate Landcorp for retaining protected land. Landcorp Protected Land Agreement
Partially provide for the future cost of funding New Zealand Superannuation payments. New Zealand Superannuation Fund - Contributions
To provide debt funding to Taitokerau Forests Limited for forest management and development. Taitokerau Forests

Landcorp Protected Land Agreement (M31)#

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Landcorp Protected Land Agreement (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 26,208 26,208 13,000

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

Current and Past Policy Initiatives - Landcorp Protected Land Agreement (M31) - Finance
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Protected Land Agreement with Landcorp. 2007/08 65,408 11,000 20,000 9,347 -

NZ Superannuation Fund - Contributions (M31)#

Scope of Appropriation#

This appropriation is limited to capital contributions to the New Zealand Superannuation Fund, for the present and future cost of New Zealand Superannuation.

Capital Expenditure#

Capital Expenditure - NZ Superannuation Fund Contributions (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,242,000 2,242,000 250,000

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#

Expected Results - NZ Superannuation Fund Contributions (M31) - Finance
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
A fund will be established to partially provide for future superannuation payments. $15,900 million $13,275 million $14,590 million

Taitokerau Forests (M31)#

Scope of Appropriation#

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

Capital Expenditure#

Capital Expenditure - Taitokerau Forests (M31) - Finance
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,700 1,700 1,400

Reasons for Change in Appropriation#

Loans are made in accordance with the loan agreement.

Expected Results#

Expected Results - Taitokerau Forests (M31) - Finance
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Loans will be provided in accordance with the terms of the loan agreement. N/A Achieved Achieved

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Taitokerau Forests (M31) - Finance
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Renegotiation of Crown loan to Taitokerau Forests Limited. 2008/09 340 1,400 800 800 800

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
Landcorp Protected Land Agreement Annual report of Landcorp Farming Limited
New Zealand Superannuation Fund - Contributions Annual report of the Guardians of New Zealand Superannuation
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 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#

Contribution of Appropriations to Government Priorities and Outcomes - Part 1.2 HighLevel Objectives of the Vote - Ministerial Services
Appropriations Government Priorities Government Outcomes
Annuities to Former Governors-General, Prime Ministers and Their Surviving Spouses   Objective: Executive Government is Well Supported
Depreciation   Objective: Executive Government is Well Supported
Executive Council and Members of the Executive's Salaries and Allowances   Objective: Executive Government is Well Supported
Governors'-General Pension Arrangements   Objective: Executive Government is Well Supported
Members of the Executive's Internal and External Travel   Objective: Executive Government is Well Supported
Support Services to Members of the Executive   Objective: Executive Government is Well Supported
Travel for Former Governors-General and Prime Ministers   Objective: Executive Government is Well Supported
VIP Transport   Objective: Executive Government is Well Supported
Visits and Official Events Coordination Ceremonial events help celebrate and develop an understanding of, and pride in, New Zealand's culture and heritage.
New Zealand's guests-of-Government visits help build international relations, which can contribute to economic growth.
Objective: Executive Government is Well Supported

Summary of Financial Activity#

Summary of Financial Activity - Ministerial Services
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 30,405 32,675 36,408 39,694 42,759 42,759 40,526 - 40,526 40,528 40,621 40,621
Benefits and Other Unrequited Expenses 317 302 6,211 407 450 434 N/A 475 475 475 475 475
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 14,796 15,530 21,727 18,397 19,837 19,787 - 19,837 19,837 19,837 19,837 19,837
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

45,518 48,507 64,346 58,498 63,046 62,980 40,526 20,312 60,838 60,840 60,933 60,933

Crown Revenue and Capital Receipts

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

Total Crown Revenue and Capital Receipts

10 10 10 10 10 10 N/A 10 10 10 10 10

New Policy Initiatives#

Budget Policy Intiatives - Ministerial Services
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Ministerial Servicing Cost Pressures Support Services to Members of the Executive 3,100 1,025 835 835 835
Ministerial Servicing Cost Pressures Visits and Official Events Coordination 1,000 1,000 1,000 1,000 1,000
Ministerial Servicing Cost Pressures Members of the Executive's Internal and External Travel 1,000 1,000 1,000 1,000 1,000
Sale of Ministerial Property Support Services to Members of the Executive - (86) (86) (86) (86)
Visits and Ceremonials (travel and accommodation efficiencies) Visits and Official Events Coordination - (50) (50) (50) (50)

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
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

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Ministerial Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective: Executive Government is Well Supported. The range of services and processes needed to be effective is available to the Executive, both inside and outside Parliament. Links to Department of the Prime Minister and Cabinet outcome "Executive government is well conducted and continues in accordance with accepted conventions and practices." Support Services to Members of the Executive
VIP Transport
Objective: Executive Government is Well Supported. Guest-of-Government visits help build international relations. Links to Ministry of Foreign Affairs and Trade outcome "Economic growth and international competitiveness advanced through New Zealand's international connections".
Ceremonial events help celebrate and develop an understanding of, and pride in, New Zealand's culture and heritage. Links to Ministry for Culture and Heritage outcome "Increased visibility and accessibility of culture, cultures in New Zealand and cultural activities".
Visits and Official Events Coordination

Support Services to Members of the Executive (M47)

Scope of Appropriation

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

Expenses and Revenue

Expenses and Revenue - Support Services to Members of the Executive (M47) - Ministerial Services
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 30,375 30,375 28,168
Revenue from Crown 29,943 29,943 27,686
Revenue from Other 433 433 483

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

Output Performance Measures and Standards - Support Services to Members of the Executive (M47) - Ministerial Services
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of Members of the Executive responding to the annual satisfaction survey who assess the quality of support services provided at 3 or above on a scale of 1 to 5 is no less than: 90% 90% 90%
Percentage of Members of the Executive responding to the annual satisfaction survey who assess their satisfaction with the timeliness of services provided to them at 3 or above on a scale of 1 to 5 is no less than: 90% 90% 90%
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
(see Note 1)
Satisfied or better
(see Note 1)
The Minister Responsible for Ministerial Services is requested to indicate his/her satisfaction with the quality of operational advice Satisfied or better
(see Note 1)
Satisfied
(see Note 1)
Satisfied or better
(see Note 1)

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

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Support Services to Members of the Executive (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Sale of Ministerial Property 2009/10 - (86) (86) (86) (86)
Ministerial Servicing Cost Pressures 2008/09 3,100 1,025 835 835 835
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
Upgrade of Information and Technology Infrastructure 2004/05 286 286 286 286 286

VIP Transport (M47)#

Scope of Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - VIP Transport (M47) - Ministerial Services
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,919 7,919 7,921
Revenue from Crown - - -
Revenue from Other 7,915 7,915 7,921

Output Performance Measures and Standards#

Output Performance Measures and Standards - VIP Transport (M47) - Ministerial Services
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of Members of the Executive who rate their satisfaction with the transport services provided to them at 3 or above on a scale of 1 to 5 is no less than: 90% 90% 90%
Percentage of replacement vehicles complying with European Fuel Emission Standard IV is no less than: 90% 90% 90%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - VIP Transport (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Ministerial travel capacity increase 2006/07 800 800 800 800 800
Departmental Personnel Capability 2005/06 26 26 26 26 26
Upgrade of Information and Technology Infrastructure 2004/05 58 58 58 58 58

Visits and Official Events Coordination (M47)#

Scope of Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - Visits and Official Events Coordination (M47) - Ministerial Services
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,465 4,465 4,437
Revenue from Crown 4,444 4,444 4,412
Revenue from Other 21 21 25

Output Performance Measures and Standards#

Output Performance Measures and Standards - Visits and Official Events Coordination (M47) - Ministerial Services
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Percentage of visit programme content and logistics arranged to reflect visit objectives is: 100% 100% 100%
Percentage of Ministers who rate their satisfaction with the quality of arrangements for Ministerial and State functions at 3 or above on a scale of 1 to 5 is no less than:
(Only Ministers sponsoring Ministerial and State Functions are surveyed.)
90% 90% 90%
Percentage of Members of the Executive who rate their satisfaction with the coordination and management of official events at 3 or above on a scale of 1 to 5 is no less than:
(Only Ministers with responsibility for hosting events are surveyed.)
90% 90% 90%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Visits and Official Events Coordination (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Visits and Ceremonials (travel and accommodation efficiencies) 2009/10 - (50) (50) (50) (50)
Ministerial Servicing Cost Pressures 2008/09 1,000 1,000 1,000 1,000 1,000
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
Guests of Government - Extended Programme 2004/05 300 300 300 300 300
Upgrade of Information and Technology Infrastructure 2004/05 36 36 36 36 36

Part 3 - Details for Benefits and Other Unrequited Expenses#

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

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - Ministerial Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective: Former Governors-General, Prime Ministers and their surviving spouses are paid annuities in accordance with their entitlement. 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

Annuities to former Governors-General, Prime Ministers and their surviving spouses.

Expenses

Expenses - Annuities to Former GovernorsGeneral, Prime Ministers and their Surviving Spouses PLA (M47) - Ministerial Services
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 450 434 475

Conditions on Use of Appropriation

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

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Ministerial Services
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective: Depreciation on Crown-owned properties is paid within current accounting practices Depreciation
Objective: Members of the Executive's salaries are paid per their determination from the Remuneration Authority Executive Council and Members of the Executive's Salaries and Allowances
Objective: Pension paid in accordance with the arrangement Governors'-General Pension Arrangements
Objective: Executive Government is Well Supported, Members of the Executive have confidence that they will be provided with travel support required to achieve their roles as legislators and Representatives Members of the Executive's Internal and External Travel
Objective: Former Governors-General and Prime Ministers are provided with travel support in accordance with their entitlements Travel for Former Governors-General and Prime Ministers

Depreciation (M47)

Scope of Appropriation

Depreciation on official residences for Members of the Executive.

Expenses

Expenses - Depreciation (M47) - Ministerial Services
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 137 137 137

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

Scope of Appropriation#

Payments for civil purposes to the Executive Council and Members of the Executive.

Expenses#

Expenses - Executive Council and Members of the Executive's Salaries and Allowances PLA (M47) - Ministerial Services
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,720 7,671 7,720

Conditions on Use of Appropriation#

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

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Executive Council and Members of the Executive's Salaries and Allowances PLA (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
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
Executive Council Ministers' Salaries and Allowances 2004/05 110 110 110 110 110

Governors'-General Pension Arrangements PLA (M47)#

Scope of Appropriation#

Payments for civil purposes, Governors'-General pension arrangements.

Expenses#

Expenses - Governors'General Pension Arrangements PLA (M47) - Ministerial Services
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 20 19 20

Conditions on Use of Appropriation#

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

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

Scope of Appropriation#

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

Expenses#

Expenses - Members of the Executive's Internal and External Travel (M47) - Ministerial Services
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,440 11.440 11,440

Conditions on Use of Appropriation#

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

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Members of the Executive's Internal and External Travel (M47) - Ministerial Services
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Ministerial Servicing Cost Pressures 2008/09 1,000 1,000 1,000 1,000 1,000
Ministerial travel capacity increase 2006/07 1,647 1,647 1,647 1,647 1,647

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

Scope of Appropriation#

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

Expenses#

Expenses - Travel for Former GovernorsGeneral and Prime Ministers (M47) - Ministerial Services
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 520 520 520

Conditions on Use of Appropriation#

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

Performance Information for Appropriations Vote Office of the Clerk#

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

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

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

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Speaker of the House of Representatives is responsible for appropriations in the Vote for the 2009/10 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, build 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#

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

Summary of Financial Activity#

Summary of Financial Activity - Office of the Clerk
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 12,127 13,196 14,455 17,172 20,287 20,287 18,115 - 18,115 18,222 18,238 18,238
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 440 669 482 687 2,617 2,617 1,160 - 1,160 1,045 650 900
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

12,567 13,865 14,937 17,859 22,904 22,904 19,275 - 19,275 19,267 18,888 19,138

Crown Revenue and Capital Receipts

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

Total Crown Revenue and Capital Receipts

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

New Policy Initiatives#

Budget Policy Intiatives - Office of the Clerk
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Simultaneous interpretation of Maori into English. Secretariat services for the House of Representatives. - 30 120 120 120
Rebroadcasting of question time. Secretariat services for the House of Representatives - 45 45 45 45
Cost reductions in printing. Secretariat services for the House of Representatives - (320) (320) (320) (320)

Operating expenses increased over the years 2004/05 to 2009/10 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.

The Office identified $320,000 ongoing savings for the 2009 Budget from cost reductions in printing of parliamentary publications and deferment of plans to televise select committees.

This is partially offset by the implementation of simultaneous interpretation of Maori into English and costs associated with rebroadcasting of Parliament's question time later in the day. These costs are shown in the budget policy initiatives table.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Office of the Clerk
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Objective:  The New Zealand Parliament's obligations as a member of the International parliamentary community are fulfilled.
Impact:  The capacity of the New Zealand Parliament is enhanced by member's engagement with other parliaments and inter-parliamentary organisations.
Inter-Parliamentary Relations.
Objective: A well supported legislature that meets its constitutional requirements for the consideration of legislation, the scrutiny of executive government, and other parliamentary business.
Impact:  To contribute value to the legislature by supporting the consideration of legislation, scrutiny of executive government and other parliamentary business, and to facilitate participation in and understanding of parliamentary democracy.
Secretariat services for the House of Representatives.

Inter-Parliamentary Relations (M78)

Scope of Appropriation

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

Expenses and Revenue

Expenses and Revenue - InterParliamentary Relations (M78) - Office of the Clerk
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,196 1,196 1,006
Revenue from Crown 1,190 1,190 1,000
Revenue from Other 6 6 6

Reasons for Change in Appropriation

The decrease in this appropriation is due to termination of funding from expenses carried forward into the 2008/09 year.

Output Performance Measures and Standards

Output Performance Measures and Standards - InterParliamentary Relations (M78) - Office of the Clerk
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Advice on Inter-Parliamentary Relations      
Advice to Speaker and members on issues relating to
inter-parliamentary relations is accurate, informed, and politically sustainable.
100% 100% 100%
Annual Programme of Visits      
Timeliness and quality of the programme meets the expectations of the Speaker. 100% 100% 100%
Servicing Visits      
Advice and services meet the satisfaction of the Speaker, members and select committees. 100% 100% 100%
Visits are completed within approved budget. 100% 100% 100%
Engagement with Pacific Parliaments      
Advice and services meet the satisfaction of the Commonwealth Parliamentary Association Pacific Branches and Regional Representatives. 100% 100% 100%
New Zealand's Engagement with Inter-parliamentary Organisations      
Advice and services meet the satisfaction of the Speaker, members and delegates. 100% 100% 100%
Secretariat services meet the satisfaction of the New Zealand Commonwealth Parliamentary Association Branch Inter-Parliamentary Union group Executive Committee. 100% 100% 100%
Hosting Parliamentary Conferences      
Planning, advice and services meet the satisfaction of the Speaker, members and delegates. 100% 100% 100%
Completed within approved budget. 100% 100% 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - InterParliamentary Relations (M78) - Office of the Clerk
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Hosting the 16th Asia-Pacific Parliamentary Forum Meeting. 2006/07 2,400 - - - -

Secretariat Services for the House of Representatives (M78)#

Scope of Appropriation#

This appropriation is limited to the provision to the House of Representatives of professional advice and services designed to assist the House in the fulfilment of its constitutional functions. This comprises assisting with the transaction of parliamentary business on the floor of the House and in select committees.

Expenses and Revenue#

Expenses and Revenue - Secretariat Services for the House of Representatives (M78) - Office of the Clerk
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 19,091 19,091 17,109
Revenue from Crown 18,796 18,792 16,880
Revenue from Other 295 299 229

Reasons for Change in Appropriation#

The decrease in the appropriation compared to the previous financial year is due to:

  • Termination of funding for fixed-term initiatives in prior years
  • Termination of funding from expenses carried forward into the 2008/09 year
  • Savings identified as part of the December 2008 value for money review

Output Performance Measures and Standards#

Output Performance Measures and Standards - Secretariat Services for the House of Representatives (M78) - Office of the Clerk
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services to the House and Committees of the Whole House      
All procedural advice and advice on the operation of the House accords with the Standing Orders, Speakers' rulings and established practice. 100% 100% 100%
An order paper listing all business available for consideration is published for each sitting day. 100% 100% 100%
At introduction, all bills comply with Standing Orders. 100% 100% 100%
All subsequent iterations of bills are prepared and accurately reflect the decisions of the House and its committees. 100% 100% 100%
Royal assent is obtained without delay and in the order passed by the House. 100% 100% 100%
All the decisions and the business transacted by the House are recorded accurately and published in the Journals of the House of Representatives. 100% 100% 100%
Information about the business of the House is posted on the Parliament website each sitting day and published weekly in the Parliamentary Bulletin. 100% 100% 100%
Parliamentary papers are posted on the website within 30 minutes of presentation. 100% 100% 100%
Presiding officers are informed in advance of the nature of questions to be put in the House and in the committee of the whole House. 100% 100% 100%
House's intentions are communicated to the Parliamentary Counsel Office in accordance with the memorandum of understanding. N/A 100% 100%
Amendments to bills are drafted, and where time permits, printed for the committee of the whole House. 100% 100% 100%
The ballot for Members' bills is conducted whenever a place becomes available on the Order Paper. 100% 100% 100%
Petitions and notices of motion are scrutinised for compliance with Standing Orders and allocated or published accordingly. 100% 100% 100%
Questions for oral and written answer are vetted and questions and replies published. 100% 100% 100%
Administrative and procedural services are provided to the Business Committee on time and accurately. N/A 100% 100%
House records are maintained in accordance with standards set by statute and Standing Orders. 100% 100% 100%
Select Committee Support      
Procedural advice accords with Standing Orders and Speaker's rulings. 100% 100% 100%
Reports prepared for committees comply with SCO report writing standards. 100% 100% 100%
Administrative deadlines for circulating the notice of meeting and committee papers, advertising for submissions, publishing to the website and presentation of reports are met. N/A 100% 100%
Records of select committee proceedings are maintained in accordance with standards set by statute and Standing Orders. N/A 100% 100%
Facilities for select committees are arranged to support select committee meetings. N/A 100% 100%
Reporting Services      
Hansard provides a readable verbatim record of debate within the following times:
  • Members' speeches (yellows) produced within two hours of being recorded in the House.
  • Hansard advance to website and printer within four working days after the sitting, except after periods of urgency.
  • WeeklyHansard (pinks) to website and printer within 10 working days after the last sitting day of the week.
100% 100% 100%
An uncorrected transcript of oral questions is available in electronic form within two and a half hours of the end of question time. 100% 100% 100%
Te Reo Maori Interpreter is available at all sitting times of the House. 100% 100% 100%
An audio engineer is provided for all sittings of the House. N/A 100% 100%
Where Te Reo Maori is used in debate, theHansard translation is accurate and meets the members' time expectations. 100% 100% 100%
Transcription servcies to select committees are provided every time they are requested, the service is accurate and meets committees' time expectations. N/A 100% 100%
Te Reo Maori interpreter is available at committee business and presentations of oral evidence in Te Reo Maori when requested. N/A 100% 100%
Te Reo Maori translation servcies are provided every time they are requested, the servcie is accurate and meets agree time standards. N/A 100% 100%
All sitting days of the House of Representatives will be broadcast live on radio. 100% 100% 100%
All sittings of the House of Representatives will be covered by parliamentary television cameras. No gaps in coverage. No gaps in coverage. No gaps in coverage.
Coverage will be broadcast live on the Parliament TV channel. Uninterrupted broadcast. Uninterrupted broadcast. Uninterrupted broadcast.
Clean feeds of all sittings of the House are available to broadcasters. No loss of feed reported. No loss of feed reported. No loss of feed reported.
Coverage of the proceedings of Parliament is made available for streaming live on the Parliament website. Available for streaming for all sitting hours. Available for streaming for all sitting hours. Available for streaming for all sitting hours.
Television coverage of the proceedings of the House will be archived in a broadcast quality form. All live coverage
is archived.
All live coverage
is archived.
All live coverage
is archived.
Information programmes will be produced and broadcast, and the information provided about the proceedings will be accurate. Contractual arrangements for programme television are adhered to. Contractual arrangements for programme television are adhered to. Contractual arrangements for programme television are adhered to.
Specialist Procedural and Legal Services      
Specialist and high level procedural advice accords with Standing Orders and Speakers' rulings, and is politically sustainable. 100% 100% 100%
Parliamentary policy development and advice is legally correct and reflects high level of specialist knowledge. N/A 100% 100%
Specialist legal advice on constitutional and parliamentary law is legally correct and reflects high level of specialist knowledge. N/A 100% 100%
Provision of parliamentary education services is accessible, accurate, useable and up-to-date. 100% 100% 100%
Legislative drafting service meets technical requirements and reflects the intention of the originator. N/A 100% 100%
Specialist advice and administrative support to the Regulations Review Committee meets the requirements of Standing Orders, Speakers' rulings, practices and timetables of the House. 100% 100% 100%
Administration of statutory functions under the Citizens Initiated Referenda Act 1993 and the Electoral Act 1993 complies with statutory requirements. 100% 100% 100%
Administration of the Register of Pecuniary Interests of Members of Parliament meets the requirements of Standing Orders, and a summary of information contained in the Register is published before 31 May each year. N/A 100% 100%

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Secretariat Services for the House of Representatives (M78) - Office of the Clerk
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
eCommittee system 2006/07 1303 1072 1,072 1,072 1,072
Televising of Parliament 2006/07 1752 1,752 1,752 1,752 1,752

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

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

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

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Office of the Clerk of the House of Representatives Capital Expenditure PLA (M78) - Office of the Clerk
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 998 998 560
Intangibles 1,619 1,619 600
Other - - -

Total Appropriation

2,617 2,617 1,160
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 998 998 560
Intangibles 1,619 1,619 600
Other - - -

Total Appropriation

2,617 2,617 1,160

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.

Expected Results

Expected Results - Office of the Clerk of the House of Representatives Capital Expenditure PLA (M78) - Office of the Clerk
  2008/09 2009/10
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
eCommittee system utilised by all select committees. - - 100%

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 2009/10 totalling $8.141 million (GST exclusive).

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 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 the monitoring of death in custody investigations conducted by Inspectors of Corrections and selected serious incidents, and
  • a heightened presence within the tertiary education sector.

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 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 the capacity of an "appropriate authority", to take such action on the matter as prescribed in the Act.

Summary of Financial Activity#

Summary of Financial Activity - Ombudsmen
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 4,925 5,511 5,802 6,148 7,369 7,369 7,407 - 7,407 7,407 7,407 7,407
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - 727 624 624 611 - 611 611 611 611
Capital Expenditure - - - 214 361 361 123 - 123 123 123 123
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

4,925 5,511 5,802 7,089 8,354 8,354 8,141 - 8,141 8,141 8,141 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 - - - - -

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 $3 million during the period detailed in the Summary of Financial Activity are due to:

  • Parliament approved as part of the 2004/05 Estimates an increase to the office baseline to allow staff remuneration to more closely reflect rates paid by other government sector employers. Half the funding was provided in the 2004/05 year and half in the 2005/06 year. Additional and 'one-off' funding was provided to meet costs associated with hosting the regional conference of Australasian and Pacific Ombudsmen in Wellington in 2005 and the development of a communications strategy from 1 July 2004
  • a Supplementary Estimates increase was approved in 2004/05 to meet the part year cost of two new staff to assist with prison investigations and meet costs associated with the appointment of a new Ombudsman to succeed retiring Ombudsman Judge Anand Satyanand
  • 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 and "call centre" support which underpins a move in the office's strategic direction towards a more pro-active positioning. In addition, funding was 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 third 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 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, and
  • 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 monitoring of investigations of deaths in custody undertaken by the Inspectors of Corrections and selected other serious incidents. Funding has also been provided for an office accommodation rental increase at Christchurch.

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. During the 2008/09 year a decision was made to not appoint a third permanent Ombudsman for the foreseeable future. The funding provision for 2008/09 and outyears was reduced as a consequence.

The cost of Ombudsmen remuneration was previously met as a Departmental Output Expense. From 2007/08, remuneration costs for all Officers of Parliament including the Ombudsmen, have been reclassified as a Departmental Other Expense. For comparative purposes all Ombudsmen remuneration costs have been removed from the Departmental Output Expense chart (Figure 2) and are now detailed in Figure 3 - Trends in Departmental Other Expenses above.

Capital Expenditure

Movements in the provision for capital expenditure follow:

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

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Ombudsmen
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Improved administration, accountability, transparency and 'open' government Investigation and Resolution of Complaints about Government Administration

Investigation and Resolution of Complaints About Government Administration (M78)

Scope of Appropriation

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

Expenses and Revenue

Expenses and Revenue - Investigation and Resolution of Complaints About Government Administration (M78) - Ombudsmen
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,369 7,369 7,407
Revenue from Crown 7,369 7,369 7,407
Revenue from Other - - -

Reasons for Change in Appropriation

The increase in the Appropriation results from the full-year cost the Ombudsmen's enhanced role within prisons and the Ombudsmen's role as a National Preventive Mechanism under the Crimes of Torture Act 1989.

Output Performance Measures and Standards

Output Performance Measures and Standards - Investigation and Resolution of Complaints About Government Administration (M78) - Ombudsmen
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Raising Awareness and Increasing Accessibility

     
Make operational visits (clinics) by staff and Ombudsmen to local authorities and smaller population centres. Meet Meet Meet
Make presentations to community groups of the role of the Ombudsmen and their jurisdiction. Meet Meet Meet
An average of 2 visits by investigating staff to each of the 40 public sector tertiary institutions throughout New Zealand. 100% 100% 100%
Publishing information pamphlets on the functional role of the Ombudsman and Ombudsmen jurisdiction to schools, service groups, government bodies at central regional and local level and to other users or potential users of the Ombudsmen's services. 25 25 25
Publishing the office's Annual Report to the House of Representatives and financial statements and any other reports appropriate for public release. Meet Meet Meet
Publishing the Ombudsmen's report as National Preventive Mechanism for prisons, immigration, mental health detention facilities and residences established under section 364 of the Children, Young Persons and Their Families Act 1989. Meet Meet Meet
Maintaining a presence on the internet and providing information and resources relating to the Ombudsman role within New Zealand. Meet Meet Meet
Preparing and distributing the Ombudsmen's Quarterly Review (Te Arotake) and Practice Guidelines to make available information about the Ombudsmen's general approach to major issues which come before them. Meet Meet Meet
Preparing and distributing the Case Notes of the Ombudsmen on a quarterly basis. 4 4 4

Quality, Professional and Unbiased Investigation of Complaints

     
All complaints to be investigated by suitably qualified and trained staff. Meet Meet Meet
All final opinions on complaints are to be made or drawn by an Ombudsman. Meet Meet Meet
Regularly conduct a survey of randomly selected complainants and government agencies about the perceived professionalism and timeliness of the Ombudsmen's investigations. Meet Meet Meet
Maintain an internal review process for particularly complex complaints or those identified as having policy implications. Meet Meet Meet

Quantity

     
Complete investigations under the Ombudsmen Act 1975. 7,200 7,200 7,200
Complete investigations under the Official Information Act 1982. 1,300 1,300 1,300
Complete investigations under the Local Government Official Information and Meetings Act 1987. 180 180 180
Provide guidance and information under the Protected Disclosures Act 2000. 15 15 15
Complete between 10 and 15 inspections of detention facilities under the Crimes of Torture Act 1989 and United Nations Convention Against Torture and publishing of inspection reports. 10 - 15 10 - 15 10 - 15
Number of investigations open at year end 800 - 900 800 - 900 800 - 900
Conduct preliminary consideration or investigation of complaints later found to be outside the Ombudsmen's jurisdiction. 505 505 505

Timeliness of Investigation - Average Number of Working Days to Complete an Investigation

     
Ombudsmen Act 1975 - general complaints 62 62 62
Ombudsmen Act - prisoner complaints 10 10 10
Official Information Act 1982 72 72 72
Local Government Official Information and Meetings Act 1987 54 54 54

Timeliness of Investigation - Age Profile as at 30 June 2010 of Open (incomplete) Complaint Investigations from Date of Receipt

     
Ombudsmen Act 1975 - general complaints:      
  • Open complaints 6 months and under
90% 90% 90%
  • Open complaints 7 to 9 months
5% 5% 5%
  • Open complaints 10 to 12 months
3% 3% 3%
  • Open complaints >12 months
2% 2% 2%
Ombudsmen Act 1975 - prisoner complaints:      
  • Open complaints 6 months and under
99% 99% 99%
  • Open complaints 7 to 9 months
1% 1% 1%
  • Open complaints 10 to 12 months
- - -
  • Open complaints >12 months
- - -
Official Information Act 1982:      
  • Open complaints 6 months and under
80% 80% 80%
  • Open complaints 7 to 9 months
6% 6% 6%
  • Open complaints 10 to 12 months
4% 4% 4%
  • Open complaints >12 months
10% 10% 10%
Local Government Official Information and Meetings Act 1987:      
  • Open complaints 6 months and under
88% 88% 88%
  • Open complaints 7 to 9 months
7% 7% 7%
  • Open complaints 10 to 12 months
4% 4% 4%
  • Open complaints >12 months
1% 1% 1%
Protected Disclosures Act 2000:      
  • Open requests for guidance and assistance 6 months and under
100% 100% 100%

Timeliness of Investigation - Age Profile as at 30 June 2010 of Completed Complaint Investigations from Date of Receipt

     
Ombudsmen Act 1975 - general complaints      
  • Completed within 6 months from date of receipt
90% 90% 90%
  • Completed within 7 to 9 months from date of receipt
5% 5% 5%
  • Completed within 10 to 12 months from date of receipt
3% 3% 3%
  • Completed >12 months from date of receipt
2% 2% 2%
Ombudsmen Act 1975 - prisoner complaints:      
  • Completed within 6 months from date of receipt
- - 95%
  • Completed within 7 to 9 months from date of receipt
- - 3%
  • Completed within 10 to 12 months from date of receipt
- - 1%
  • Completed >12 months from date of receipt
- - 1%
Official Information Act 1982:      
  • Completed within 6 months from date of receipt
80% 80% 80%
  • Completed within 7 to 9 months from date of receipt
6% 6% 6%
  • Completed within 10 to 12 months from date of receipt
4% 4% 4%
  • Completed >12 months from date of receipt
10% 10% 10%
Local Government Official Information and Meetings Act 1987:      
  • Completed within 6 months from date of receipt
80% 80% 80%
  • Completed within 7 to 9 months from date of receipt
6% 6% 6%
  • Completed within 10 to 12 months from date of receipt
4% 4% 4%
  • Completed >12 months from date of receipt
10% 10% 10%
Protected Disclosures Act 2000:      
  • Completed requests for guidance and assistance within 6 months from date of receipt
100% 100% 100%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Investigation and Resolution of Complaints About Government Administration (M78) - Ombudsmen
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Capability building 2005 401 401 401 401 401
Capability maintenance 2006 117 117 117 117 117
Capability maintenance 2007 240 480 480 480 480
Implementation United Nations Convention Against Torture 2007 189 160 160 160 160
Capability building 2007 162 159 159 159 159
Enhanced Ombudsmen role within prisons 2008 69 1,285 1,323 1,323 1,323
Capability building 2008 - 290 290 290 290
Capability maintenance 2008 - 14 14 14 14

Part 5 - Details and Expected Results for Other Expenses#

Part 5.1 - Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives

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

Remuneration of Ombudsmen PLA (M78)

Scope of Appropriation

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

Expenses

Expenses - Remuneration of Ombudsmen PLA (M78) - Ombudsmen
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 624 624 611
Revenue from the Crown 624 624 611

Reasons for Change in Appropriation

The Remuneration Authority issued a new determination for the Ombudsmen.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Remuneration of Ombudsmen PLA (M78) - Ombudsmen
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Reversion to two Ombudsmen 2005 (220) (220) (220) (220) (220)
Appointment of third Ombudsman and Ombudsmen remuneration adjustments 2007 299 285 285 285 285

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

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

Office of the Ombudsmen - Capital Expenditure PLA (M78)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Office of the Ombudsmen Capital Expenditure PLA (M78) - Ombudsmen
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 347 347 119
Intangibles 14 14 4
Other - - -

Total Appropriation

361 361 123
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 347 347 119
Intangibles 14 14 4
Other - - -

Total Appropriation

361 361 123

Reasons for Change in Appropriation

The Ombudsmen's role in prisons was enhanced from 2008/09. The bulk of the capital and intangible expenditure incurred in 2008/09 is associated with the enhanced role. The reduction in capital expenditure in 2009/10 reflects the budget returning to routine replacement and maintenance levels.

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 2009/10 financial year covering the following:

  • a total of just over $66 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 $5 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 Service's empowering legislation is the Parliamentary Service Act 2000, which states in Section 7 that the principal duties of the Parliamentary Service are:

  • to provide administrative and support services to the House of Representatives and to members of Parliament, and
  • to administer, in accordance with directions given by the Speaker, the payment of funding entitlements for parliamentary purposes.

Summary of Financial Activity#

Summary of Financial Activity - Parliamentary Service
  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 39,126 43,759 51,559 58,471 67,044 67,044 66,296 - 66,296 66,565 66,793 66,901
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 49,763 50,114 50,629 53,840 59,123 59,123 - 58,192 58,192 58,192 58,192 58,192
Capital Expenditure 10,434 27,504 13,914 11,642 16,208 12,508 5,582 1,525 7,107 6,879 4,865 5,325
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

99,323 121,377 116,102 123,953 142,375 138,675 71,878 59,717 131,595 131,636 129,850 130,418

Crown Revenue and Capital Receipts

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

Total Crown Revenue and Capital Receipts

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

New Policy Initiatives#

Budget Policy Intiatives - Parliamentary Service
Policy Initiative Appropriation 2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Increased Out-of-Parliament Support for Maori and Large Electorates Operations, Information and Advisory Services MCOA 215 644 644 644 644
Increased Out-of-Parliament Support for Maori and Large Electorates Non-Departmental Other Expenses 170 508 508 508 508
Increased Out-of-Parliament Support for Maori and Large Electorates Non-Departmental Capital Injection 97 - - - -
Simultaneous Interpretation of Parliamentary Debates from Maori to English Operations, Information and Advisory Services MCOA - 18 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 719 1,182 1,182 1,182 1,182
Parliamentary Buildings, Facilities and Costs Resulting from the Election Services to Members 976 124 124 124 124

 

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

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

Operations, Information and Advisory Services MCOA (M78)

Scope of Appropriation

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

Explanation for Use of Multi-Class Output Expense Appropriation

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

Expenses and Revenue

Expenses and Revenue - Operations, Information and Advisory Services MCOA (M78) - Parliamentary Service
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

48,670 48,670 48,229
Building and Operations Management 27,420 27,420 27,833
Parliamentary Information Services 13,000 13,000 13,245
Personnel and Accounting Services to Members and Other Agencies 7,360 7,360 6,320
Policy Advice 890 890 831

Revenue from Crown

47,230 47,230 46,655
Building and Operations Management 26,861 26,861 27,167
Parliamentary Information Services 12,777 12,777 13,009
Personnel and Accounting Services to Members and Other Agencies 6,702 6,702 5,648
Policy Advice 890 890 831

Revenue from Other

1,440 1,440 1,574
Building and Operations Management 559 559 666
Parliamentary Information Services 223 223 236
Personnel and Accounting Services to Members and Other Agencies 658 658 672
Policy Advice - - -

Reasons for Change in Appropriation

This appropriation has not changed materially.

Output Performance Measures and Standards

Output Performance Measures and Standards - Operations, Information and Advisory Services MCOA (M78) - Parliamentary Service
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Parliamentary Information Services      
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. At least a 90% success rating for basic and medium level tasks is achieved. At least a 90% success rating for basic and medium level tasks is achieved. 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%
Building and Operations Management      
Continued maintenance of the buildings of the parliamentary precincts as set out in An Asset Management Plan for the Parliamentary Precinct subject to finance availability. New Measure for 2009/10 New Measure for 2009/10 0, where zero indicates maintenance is being carried out as planned, on time.
Policy Advice      
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.
Personnel and Accounting Services to Members and Other Agencies      
Members' 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 satisfaction 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 satisfaction 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 satisfaction 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 offices 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 offices 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 offices services) are resolved after three working days, with 95% resolved in ten days.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Operations, Information and Advisory Services MCOA (M78) - Parliamentary Service
Reference Conditions
Network availability The calculation of non-availability includes planned and unplanned outages.
Satisfaction rating for information and research services Surveys are randomly selected samples of all major users of the service, and may include members of Parliament.
The system applies the research and methodology published in Delivering quality service: balancing customer perceptions and expectations, by Valarie Zeithaml, A Parasuraman and Leonard L Berry, New York: Free Press, 1990, as well as later research by these authors.
The samples are sufficient in accuracy to generate findings that are expressed to a stated degree of confidence in their accuracy (in most cases, a 95% probability that the results will have a precision of ±15%).
The satisfaction rating quoted in the quality measure is a weighted average calculated by applying the scores in each question area to the clients' overall rating of the importance of each dimension. The survey shows the overall result of at least the percentage specified.
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.
Crown Capital Asset Management To measure the effectiveness of the Service's stewardship of the buildings of the parliamentary precincts, which are the major assets under the Service's responsibility, the Service has a 100 year asset plan. The Service has assigned expected use timeframes to the major building elements, according to relevant standards. A formula is used to measure adherence to the maintenance schedule against funding for the work to be carried out. "0" indicates that maintenance project work is completed in line with the Asset Management Plan. Values above 0 indicate that maintenance work as set out in the asset plan is not taking place. Negative values indicate work is done ahead of schedule.
Quality and timeliness standards for policy advice All policy advice and reports prepared conform to quality criteria for:
purpose, logic, accuracy, options, consultation, practicality, and presentation.
Papers to the Parliamentary Service Commission are provided at least two days before scheduled Commission meetings (Except in the case of urgent papers or otherwise at the Speaker's discretion.
Members' claims for reimbursements Reimbursement claims must meet conditions set out in the Speaker's Directions. The Service's "Financial and Administrative Policies and Processes" package ensures that reimbursements are claimed and administered in a way that follows 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 survey to measure client satisfaction ratings. The reported rating is based on a question within the survey concerning overall satisfaction with the services of each team on a scale of 1 (very poor) to 10 (excellent). The satisfaction ratings reported for "excellent" service were respondents who gave a score of eight, nine, or ten out of 10. The quantitative survey results are supported by qualitative research findings (is collaborative with a separate qualitative survey) undertaken near the time of the quantitative survey. Surveys are conducted every six months.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Operations, Information and Advisory Services MCOA (M78) - Parliamentary Service
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Simultaneous Interpretation of Parliamentary Debates from Maori to English 2009 - 18 77 77 77
Increased Out-of-Parliament Support for Large Electorates 2008 215 644 644 644 644
Parliamentary Buildings, Facilities and Costs Resulting from the Election 2008 719 1,182 1,182 1,182 1,182
Capability Development and Performance Enhancement 2007 343 343 343 343 343
ICT Services Capability 2007 853 825 825 825 825
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 56 100 100 100 100

Services to Members (M78)#

Scope of Appropriation#

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

Expenses and Revenue#

Expenses and Revenue - Services to Members (M78) - Parliamentary Service
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 18,374 18,374 18,067
Revenue from Crown 18,094 18,094 17,671
Revenue from Other 280 280 396

Reasons for Change in Appropriation#

This appropriation has not changed materially.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Services to Members (M78) - Parliamentary Service
  2008/09 2009/10
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Speaker is satisfied with the provision of resources and services to the Office of the Speaker. 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 the provision of support staff is indicated. Satisfaction with the provision of support staff is indicated. Satisfaction with the provision of support staff is indicated.

Conditions on Use of Appropriation#

Conditions on Use of Appropriation - Services to Members (M78) - Parliamentary Service
Reference Conditions
Services to the Office of the Speaker of the House of Representatives Six-monthly independent discussions with the Speaker show that, overall, the Speaker is satisfied with the quality of the service given by the Parliamentary Service (including the professionalism and the quality of the relationships with the Parliamentary Service).
Members and Whips satisfaction with services The Parliamentary Service's client satisfaction survey of party whips and members show that, overall, they are satisfied with the provision of support staff.
Service satisfaction ratings are based on a question within the survey concerning overall satisfaction with the services of each team on a scale of 1 (very poor) to 10 (excellent). The satisfaction ratings reported for "very satisfied" service were where respondents gave a score of 7, 8, 9, or 10 out of 10. The quantitative survey results are supported by qualitative research findings (is collaborative with a separate qualitative survey) undertaken near the time of the quantitative survey. Surveys are conducted every six months.

Current and Past Policy Initiatives#

Current and Past Policy Initiatives - Services to Members (M78) - Parliamentary Service
Policy Initiative Year of
First
Impact
2008/09
Budgeted
$000
2009/10
Budget
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
2012/13
Estimated
$000
Parliamentary Buildings, Facilities and Costs Resulting from the Election 2008 976 124 124 124 124
Risk and Assurance Committee support 2007 57 57 57 57 57

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Parliamentary Service
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
The objective for this appropriation is to take into account depreciation expense on the Parliamentary Complex and Library. Depreciation Expense on Parliamentary Complex and Library
The objective for this appropriation is to ensure funding to members and parliamentary political parties complies 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 complies 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 complies 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 complies 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 complies 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 complies 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 complies 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 complies 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 complies 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 complies with appropriate legislation and/or the Speaker's Directions and Determinations. Travel of Members and Others

Depreciation Expense on Parliamentary Complex (M78)

Scope of Appropriation

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

Expenses

Expenses - Depreciation Expense on Parliamentary Complex (M78) - Parliamentary Service
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,274 11,274 11,274

 

Members' Communications (M78)#

Scope of Appropriation#

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

Expenses#

Expenses - Members' Communications (M78) - Parliamentary Service
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,328 2,361 2,426

Reasons for Change in Appropriation#

The increase is to provide additional support to large electorates.

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

Scope of Appropriation#

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

Expenses#

Expenses - Members of the House of Representatives' Salaries and Allowances PLA (M78) - Parliamentary Service
  2008/09 2009/10
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,387 18,391 17,022

Reasons for Change in Appropriation#

The increase is to meet members' entitlements as per the remuneration review.

Note 3 - Depreciation and Amortisation#

Note 3 - Depreciation and Amortisation - Revenue
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Depreciation and impairment 16,732 18,287 17,208 16,100
Amortisation and impairment 29,010 33,534 33,431 38,431

Total Depreciation and Amortisation

45,742 51,821 50,639 54,531

Note 4 - Reconciliation of Departmental Expenses and Appropriations#

Note 4 - Reconciliation of Departmental Expenses and Appropriations - Revenue
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Appropriations for Output Expenses        
Total for Vote Revenue 611,705 626,508 661,810 626,998
Total Appropriations for Output Expenses 611,705 626,508 661,810 626,998

Total Departmental Expenses [as per Statement of Financial Performance]

611,705 626,508 661,810 626,998

Note 5 - Debtors and Other Receivables#

Note 5 - Debtors and Other Receivables - Revenue
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Debtor Crown 73,092 67,842 78,842 89,414
Debtors Other 4,799 4,370 4,822 4,822

Total Debtors and Other Receivables

77,891 72,212 83,664 94,236

Note 6 - Property, Plant and Equipment#

Note - PPE - Revenue
  Computer equipment
$000
Leasehold improvements/furniture
$000
Office equipment
$000
Motor Vehicles
$000
Total
$000

Cost or revaluation

         
Balance as at 1 July 2009 73,861 80,091 18,645 5,040 177,637
Additions by purchase 6,000 8,000 - - 14,000

Balance as at 30 June 2010

79,861 88,091 18,645 5,040 191,637

Accumulated depreciation and impairment losses

         
Balance as at 1 July 2009 53,658 52,758 16,284 2,000 124,700
Depreciation expense 9,000 5,500 1,000 600 16,100
Eliminate on disposal (5,000) (1,000) (500) - (6,500)

Balance as at 30 June 2010

57,658 57,258 16,784 2,600 134,300

Carrying amount as at 30 June 2010

22,203 30,833 1,861 2,440 57,337

Note 7 - Intangible Assets#

Intangible Asset Note - Revenue
  Acquired software
$000
Internally
generated software
$000
Total
$000

Cost

     
Balance as at 1 July 2009 119,330 395,245 514,575
Additions by purchase 8,549 - 8,549
Additions internally developed - 28,318 28,318
Disposals (1,159) (3,841) (5,000)

Balance as at 30 June 2010

126,720 419,722 546,442

Accumulated amortisation and impairment losses

     
Balance as at 1 July 2009 74,712 247,462 322,174
Amortisation expense 8,912 29,519 38,431
Disposals (1,159) (3,841) (5,000)
Impairment losses - - -

Balance as at 30 June 2010

82,465 273,140 355,605

Carrying amount as at 30 June 2010

44,255 146,582 190,837

Note 8 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010#

Note 8 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010 - Revenue
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
 Net Surplus/(Deficit) 5,961 - 4,750 -
Add/(Less) Non-cash Items        
Depreciation and amortisation expense 45,742 51,821 50,639 54,531
Total Non-cash Items 45,742 51,821 50,639 54,531
Add/(Less) Items Classified as Investing or Financing Activities        
(Gains)/Losses on disposal property, plant and equipment 46 5 85 -
(Gains)/Losses on disposal intangible assets 5 - - -
Total Items Classified as Investing or Financing Activities 51 5 85 -
Add/(Less) Movements in Working Capital Items        
(Inc)/Dec in debtors and other receivables 13,874 9,879 (5,773) (10,572)
(Inc)/Dec in prepayments (1,831) 1 (161) -
(Inc)/Dec in inventories (420) 122 - -
Inc/(Dec) in creditors and other payables (8,406) (682) 1,519 -
Inc/(Dec) in current provisions 341 - (869) -
Inc/(Dec) in employee entitlements 8,668 1,071 4,402 2,625
Inc/(Dec) in other (5) (79) (79) -
Net Movements in Working Capital Items 12,221 10,312 (961) (7,947)
Add/(Less) Movements in Non-current Liabilities        
Inc/(Dec) in non-current provisions 36 - 1,522 -
Inc/(Dec) in employee entitlements 1,863 995 3,000 1,186
Inc/(Dec) in other 1,191 (129) (182) -
Net Movements in Non-Current Liabilities 3,090 866 4,340 1,186

Net Cash from Operating Activities

67,065 63,004 58,853 47,770

Forecast Financial Statements Office of the Ombudsmen#

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

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

Income

         
Crown   6,878 8,208 7,993 8,018
Department(s)   49 - - -
Other revenue   - - - -
Gains   - - - -
Interest   - - - -
Total Income   6,927 8,208 7,993 8,018

Expenses

1        
Personnel 2 5,177 6,619 6,404 6,428
Operating   1,609 1,430 1,426 1,431
Depreciation and amortisation   85 133 137 133
Capital charge   4 26 26 26
Finance costs   - - - -
Other   - - - -
Total Expenses   6,875 8,208 7,993 8,018
Net Surplus / (Deficit)   - - - -
Other comprehensive income   - - - -
Total Comprehensive Income   52 - - -

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

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

Balance at 1 July

         
General funds   18 329 329 329
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   18 329 329 329

Changes in Taxpayers' Funds

         
Comprehensive income for the period   52 - - -
Repayment of surplus   (52) - - -
Capital contribution   311 - - -
Capital withdrawal   - - - -
Other   - - - -
Total Changes in Taxpayers' Funds   311 - - -

Balance at 30 June

         
General funds   329 329 329 329
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   329 329 329 329

Forecast Statement of Financial Position as at 30 June 2010#

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

Assets

         

Current Assets

         
Cash and cash equivalents   614 285 280 294
Debtors and other receivables   - - - -
Prepayments   43 13 18 18
Inventories   - - - -
Other current assets   - - - -
Total Current Assets   657 298 298 312

Non-current Assets

         
Property, plant and equipment   278 434 492 478
Intangible assets   23 21 33 33
Other non-current assets   - - - -
Total Non- current Assets   301 455 525 511
Total Assets   958 753 823 823

Liabilities

         

Current Liabilities

         
Creditors and other payables   206 159 159 159
Repayment of surplus   52 - - -
Employee entitlements 3 336 232 300 300
Other current liabilities   - - - -
Total Current Liabilities   594 391 459 459

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements 4 35 33 35 35
Other non-current liabilities   - - - -
Total Non-current Liabilities   35 33 35 35
Total Liabilities   629 424 494 494

Taxpayers' Funds

         
General funds   329 329 329 329
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   329 329 329 329
Total Liabilities and Taxpayers' Funds   958 753 823 823

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

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

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   6,878 8,208 7,993 8,018
Department(s)   49 - - -
Other   - - - -
Interest   - - - -

Payments to:

         
Suppliers   (1,639) (1,426) (1,426) (1,427)
Employees   (5,064) (6,619) (6,440) (6,428)
Capital charge   (4) (26) (26) (26)
Goods and services tax (net)   - - - -
Other operating activities   12 - (22) -
Net Cash from Operating Activities 5 232 137 79 137

Cash Flow from Investing Activities

         

Receipts from:

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

Purchase of:

         
Property, plant and equipment   (189) (119) (347) (119)
Intangible assets   (25) (4) (14) (4)
Other non-current assets   - - - -
Net Cash from Investing Activities   (214) (123) (361) (123)

Cash Flow from Financing Activities

         
Capital contribution   311 - - -
Other financing cash inflows   - - - -
Repayment of surplus   - - (52) -
Capital withdrawal   - - - -
Other financing cash outflows   - - - -
Net Cash from Financing Activities   311 - (52) -
Net Increase / (Decrease) in Cash   329 14 (334) 14
Cash at the beginning of the year   285 271 614 280
Cash at the end of the year   614 285 280 294

Statement of Entity-Specific Accounting Policies#

The Office of the Ombudsmen has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting Entity

These are the prospective financial statements of Office of the Ombudsmen, prepared in accordance with section 38 of the Public Finance Act 1989.

Office of the Ombudsmen is an Office of Parliament and is defined as a Government Department by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Office of the Ombudsmen is a public benefit entity.

Authorisation Statement

These Forecast Financial Statements were authorised for issue by Beverley A Wakem, Chief Ombudsman, on 9 April 2009. The Chief Ombudsman is responsible for the Forecast Financial Statements presented, including the appropriateness of the assumptions underlying the Forecast Financial Statements and all other required disclosures.

Specific Accounting Policies

Depreciation

Computer assets are depreciated using the straight-line method at 25% per annum. Improvements to leasehold properties are depreciated over the remaining life of the lease. All other assets are depreciated at 20% per annum using the straight-line method.

Financial Instruments

All financial instruments are recognised in the Statement of Financial Position.

All revenue and expenditure in relation to financial instruments is recognised in the Statement of Financial Performance.

A letter of credit exists between the office and ASB Management Services Ltd, a division of ASB Bank, to allow the bank to recover payroll costs from the office Westpac bank account.

Taxpayer's Funds

This is the Crown's net investment in the Office of the Ombudsmen.

Notes to the Financial Statements#

Note 1 - Operating Expenses
Note 1 - Operating Expenses - Ombudsmen
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
 Operating expenses include:        
 Consultants' fees 372 35 35 35
 Overseas travel 24 60 60 20
 Domestic travel 91 167 167 192
 Accommodation 667 695 695 695
 Other 485 372 372 392

Total

1,639 1,329 1,329 1,334

Note 2 - Personnel#

Note 2 - Personnel - Ombudsmen
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Includes remuneration for the Ombudsmen pursuant to sections 8 and 9 of the Ombudsmen Act 1975 727 624 624 611

Note 3 - Employee Entitlements#

Note 3 - Employee Entitlements - Ombudsmen
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Comprises accrued annual leave, currently due long service leave and salaries for all staff of the office of the Ombudsmen 371 335 335 335

Note 4 - Employee Entitlements#

Note 4 - Employee Entitlements - Ombudsmen
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
"Grandfather" provision for staff recruited under previous terms and conditions of employment - accrued long service leave not currently due. 33 35 35 35

Note 5 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010#

Note 5 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010 - Ombudsmen
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
 Net surplus/ (deficit) 52 - - -
 Add (less) non-cash items        
 Depreciation and amortisation expense 85 137 137 137
 Total non-cash items 85 137 137 137
 Add (less) movements in working capital items        
(Inc)/ Dec in prepayments (25) - 25 -
(Inc)/ Dec in debtors 11 - - -
Inc/ (Dec) in creditors and payables 26 - (47) -
Inc/ (Dec) in employee entitlements 81 - (36) -
Net movements in working capital items 93 - (58) -
Add (less) movements in non-current liabilities        
Inc/ (Dec) in employee entitlements 2 - - -
Net cash from operating activities 232 137 79 137

Forecast Financial Statements Parliamentary Service#

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

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

Income

         
Crown   59,928 62,261 65,324 64,326
Department(s)   827 804 851 1,020
Other revenue   690 626 869 950
Gains   - - - -
Interest   - - - -
Total Income   61,445 63,691 67,044 66,296

Expenses

         
Personnel   32,104 36,444 38,322 37,367
Operating 1 21,097 19,670 21,961 21,317
Depreciation and amortisation   3,935 5,733 4,917 6,041
Capital charge   1,330 1,844 1,844 1,571
Finance costs   - - - -
Other   5 - - -
Total Expenses   58,471 63,691 67,044 66,296
Net Surplus / (Deficit) 2 - - - -
Other comprehensive income   - - - -
Total Comprehensive Income   2,974 - - -

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

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

Balance at 1 July

         
General funds   17,212 24,544 24,544 25,339
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   17,212 24,544 24,544 25,339

Changes in Taxpayers' Funds

         
Comprehensive income for the period   2,974 - - -
Repayment of surplus   (2,974) - - -
Capital contribution   7,332 698 795 447
Capital withdrawal   - - - -
Other   - - - -
Total Changes in Taxpayers' Funds   7,332 698 795 447

Balance at 30 June

         
General funds   24,544 25,242 25,339 25,786
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   24,544 25,242 25,339 25,786

Forecast Statement of Financial Position as at 30 June 2010#

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

Assets

         

Current Assets

         
Cash and cash equivalents   11,936 3,124 2,665 3,965
Debtors and other receivables   4,579 2,500 2,500 2,500
Prepayments   1,400 - - -
Inventories   129 120 120 90
Other current assets   - 1,558 - -
Total Current Assets   18,044 7,302 5,285 6,555

Non-current Assets

         
Property, plant and equipment   17,951 24,377 25,148 24,139
Intangible assets   1,581 - 1,781 1,981
Other non-current assets   - - - -
Total Non- current Assets   19,532 24,377 26,929 26,120
Total Assets   37,576 31,679 32,214 32,675

Liabilities

         

Current Liabilities

         
Creditors and other payables   7,418 4,220 4,221 4,221
Repayment of surplus   2,974 - - -
Employee entitlements   2,092 1,792 2,106 2,120
Other current liabilities   - - - -
Total Current Liabilities   12,484 6,012 6,327 6,341

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   548 425 548 548
Other non-current liabilities   - - - -
Total Non-current Liabilities   548 425 548 548
Total Liabilities   13,032 6,437 6,875 6,889

Taxpayers' Funds

         
General funds   24,544 25,242 25,339 25,786
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   24,544 25,242 25,339 25,786
Total Liabilities and Taxpayers' Funds   37,576 31,679 32,214 32,675

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

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

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   59,928 62,261 65,324 64,326
Department(s)   (1,238) 804 2,838 819
Other   668 626 961 1,151
Interest   - - - -

Payments to:

         
Suppliers   (19,929) (19,833) (22,912) (21,450)
Employees   (31,653) (36,267) (38,145) (37,190)
Capital charge   (1,330) (1,844) (1,844) (1,571)
Goods and services tax (net)   83 - - -
Other operating activities   - - - -
Net Cash from Operating Activities   6,529 5,747 6,222 6,085

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   (772) - - -
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (1,566) (7,689) (13,314) (5,232)
Intangible assets   - - - -
Other non-current assets   - - - -
Net Cash from Investing Activities   (2,338) (7,689) (13,314) (5,232)

Cash Flow from Financing Activities

         
Capital contribution   7,332 698 795 447
Other financing cash inflows   - - - -
Repayment of surplus   (1,672) - (2,974) -
Capital withdrawal   - - - -
Other financing cash outflows   - - - -
Net Cash from Financing Activities   5,660 698 (2,179) 447
Net Increase / (Decrease) in Cash   9,851 (1,244) (9,271) 1,300
Cash at the beginning of the year   2,085 4,368 11,936 2,665
Cash at the end of the year   11,936 3,124 2,665 3,965

Statement of Significant Assumptions#

These forecast financial statements have been compiled on the basis of existing government policies and Ministerial expectations at the time the statements were finalised.

The main assumptions are as follows:

  • The Service's activities will remain substantially the same as for the previous year.
  • Operating costs are based on historical experience. The general historical pattern is expected to continue.
  • Estimated year end information for 2008/09 is used as the opening position for the 2009/10 forecasts.

These assumptions are adopted as at 22 April 2009.

Factors that could lead to material differences between the forecast financial statements and the 2009/10 actual financial statements include:

  • Changes to the baseline budget through new initiatives, or technical adjustments.

Statement of Entity-Specific Accounting Policies#

The Parliamentary Service has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting Entity

These are the prospective financial statements of Parliamentary Service, prepared in accordance with section 38 of the Public Finance Act 1989.

The Parliamentary Service is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Parliamentary Service is a public benefit entity.

Authorisation Statement

These forecast financial statements were authorised by the General Manager on 22 April 2009. The General Manager is responsible for the forecast financial statements presented, including the appropriateness of the assumptions underlying the forecast financial statements and other required disclosure.

Specific Accounting Policies

Property, Plant and Equipment

Capitalisation thresholds applied are set out below.

  • IT Equipment/Hardware - $1,000.
  • All other property, plant and equipment - $1,000.

Depreciation

The estimated useful lives of property, plant and equipment are set out below.

  • Buildings - N/A.
  • Leasehold improvements - 3 to 34 years.
  • IT Equipment / Hardware - 3 to 5 years.
  • Motor vehicles - 5 years.
  • Furniture and office equipment - 5 years.
  • Other categories - 3 to 7 years.

Intangible Assets

Capitalisation thresholds applied are:

  • Purchased software - $1,000.
  • Internally developed software - $1,000.

The estimated useful lives of intangible assets are set out below.

  • Purchased software - 3 to 5 years
  • Internally developed software - 3 to 5 years

Cost Allocation

The Service has derived the costs of outputs using a cost allocation system outlined below.

Cost Allocation Policy

Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities based on cost drivers and related activities/usage information.

Criteria for Direct and Indirect Costs

"Direct Costs" are those costs directly attributed to an output.

"Indirect Costs" are those costs that cannot be identified in an economically feasible manner, with a specific output.

Direct Costs Assigned to Outputs

Direct costs are charged directly to outputs. Depreciation and capital charge are charged on the basis of asset utilisation. Personnel costs are charged by actual time incurred.

Basis for Assigning Indirect and Corporate Costs to Outputs

Indirect costs are assigned to outputs based on a proportion of direct staff costs used for each output.

Notes to the Financial Statements#

Note 1 - Operating Expenses
Note 1 - Operating Expenses - Parliamentary Service
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Consultant's fees 1,730 1,613 1,782 1,062
Overseas travel 127 110 95 95
Domestic travel 193 192 200 200
Other 19,047 17,755 19,884 19,960

Total

21,097 19,670 21,961 21,317

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

Note 2 - Reconciliation of Net Surplus to net Cash Flows from operating Activities for the year ending 30 June 2010 - Parliamentary Service
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Net surplus/(deficit) 2,974 - - -
Add/(less) non-cash items        
Depreciation and amortisation 3,935 5,917 4,917 6,041
Increase in non-current employee entitlements 123 14 14 14
Total non-cash items 4,058 5,931 4,931 5,931
Add/(less) movements in working capital        
(Inc)/Dec in debtors and other receivables (3,412) 3,479 3,479 -
(Inc)/Dec in Inventory 8 9 9 30
Inc/(Dec) in Creditors and other payables 2,570 (3,197) (2,197) -
Inc/(Dec) in employee entitlements 328 - - -
Net movements in working capital (506) 291 1,291 30
Add/(less) investing activity items        
Loss/(Gain) on sale of property plant and equipment and intangibles 5 - - -
Total investing activity items 5 - - -

Net cash from operating activities

6,531 6,222 6,222 6,085

Forecast Financial Statements Department of the Prime Minister and Cabinet#

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

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

Income

         
Crown   15,616 15,497 15,398 15,497
Department(s)   - - - -
Other revenue 1 50 62 59 66
Gains   - - - -
Interest   - - - -
Total Income   15,666 15,559 15,457 15,563

Expenses

         
Personnel   10,685 11,646 10,730 11,024
Operating 2 4,588 3,253 4,054 4,091
Depreciation and amortisation   288 565 350 370
Capital charge   58 63 53 53
Finance costs   - - - -
Other   - - - -
Total Expenses   15,619 15,527 15,187 15,538
Net Surplus / (Deficit)   32 32 270 25
Other comprehensive income   - - - -
Total Comprehensive Income   47 32 270 25

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

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

Balance at 1 July

         
General funds   703 703 703 703
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   703 703 703 703

Changes in Taxpayers' Funds

         
Comprehensive income for the period   47 32 270 25
Repayment of surplus   (47) (32) (270) (25)
Capital contribution   - - - -
Capital withdrawal   - - - -
Other   - - - -
Total Changes in Taxpayers' Funds   - - - -

Balance at 30 June

         
General funds   703 703 703 703
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   703 703 703 703

Forecast Statement of Financial Position as at 30 June 2010#

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

Assets

         

Current Assets

         
Cash and cash equivalents   2,163 1,098 2,041 1,916
Debtors and other receivables   72 - - -
Prepayments   119 12 12 12
Inventories   100 100 100 100
Other current assets   - - - -
Total Current Assets   2,454 1,210 2,153 2,028

Non-current Assets

         
Property, plant and equipment 3 726 1,490 616 516
Intangible assets 4 46 40 176 156
Other non-current assets   328 317 328 328
Total Non- current Assets   1,100 1,847 1,120 1,000
Total Assets   3,554 3,057 3,273 3,028

Liabilities

         

Current Liabilities

         
Creditors and other payables 5 1,704 1,220 1,080 1,080
Repayment of surplus   47 32 270 25
Employee entitlements 6 624 516 624 624
Other current liabilities   - - - -
Total Current Liabilities   2,375 1,768 1,974 1,729

Non-current Liabilities

         
Provisions   - 120 120 120
Employee entitlements 6 476 466 476 476
Other non-current liabilities   - - - -
Total Non-current Liabilities   476 586 596 596
Total Liabilities   2,851 2,354 2,570 2,325

Taxpayers' Funds

         
General funds   703 703 703 703
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   703 703 703 703
Total Liabilities and Taxpayers' Funds   3,554 3,057 3,273 3,028

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

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

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   15,616 15,497 15,398 15,497
Department(s)   - - - -
Other   50 62 59 66
Interest   - - - -

Payments to:

         
Suppliers   (6,412) (3,348) (4,434) (3,882)
Employees   (8,691) (11,551) (10,575) (11,233)
Capital charge   (58) (63) (53) (53)
Goods and services tax (net)   6 - - -
Other operating activities   - - - -
Net Cash from Operating Activities 7 511 597 395 395

Cash Flow from Investing Activities

         

Receipts from:

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

Purchase of:

         
Property, plant and equipment   (227) (1,270) (220) (200)
Intangible assets   (43) (50) (250) (50)
Other non-current assets   - - - -
Net Cash from Investing Activities   (270) (1,320) (470) (250)

Cash Flow from Financing Activities

         
Capital contribution   - - - -
Other financing cash inflows   - - - -
Repayment of surplus   (46) (112) (47) (270)
Capital withdrawal   - - - -
Other financing cash outflows   - - - -
Net Cash from Financing Activities   (46) (112) (47) (270)
Net Increase / (Decrease) in Cash   195 (835) (122) (125)
Cash at the beginning of the year   1,968 1,933 2,163 2,041
Cash at the end of the year   2,163 1,098 2,041 1,916

Statement of Significant Assumptions#

These forecast financial statements have been compiled on the basis of existing government policies and Ministerial expectations at the time the statements were finalised.

The main assumptions are as follows:

  • The department's main activities will remain substantially the same as for the previous year.
  • Personnel costs are based on 126 staff positions (121.5 full time equivalents).
  • Operating costs are based on historical experience. The general historical pattern is expected to continue.
  • Estimated year end information for 2008/09 is used as the opening position for the 2009/10 forecasts.

These assumptions are adopted as at 1 July 2009.

Factors that could lead to material differences between the forecast financial statements and the 2008/09 actual financial statements include:

  • changes to the baseline budget as a result of new initiatives or technical adjustments

Statement of Entity-Specific Accounting Policies#

The Department of the Prime Minister and Cabinet has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below.

Reporting entity

These are the prospective financial statements of Department of the Prime Minister and Cabinet, prepared in accordance with section 38 of the Public Finance Act 1989.

Department of the Prime Minister and Cabinet is a Government Department as defined by section 2 of the Public Finance Act 1989. For the purposes of financial reporting Department of the Prime Minister and Cabinet is a public benefit entity.

Specific Accounting Policies

Property, plant and equipment

The capitalisation thresholds for property, plant and equipment is $2,000.

The estimated useful lives of property, plant and equipment are set out below:

  • Fixtures and fittings including IT cabling- 10 years
  • IT equipment/hardware - 3 years
  • Motor vehicles - 4 years
  • Furniture and office equipment - 5 years
  • Plant and equipment - 5-10 years
  • Grounds improvement - 5 years

Intangible assets

The capitalisation threshold for purchased software is $2,000.

The estimated useful lives of purchased software is 3 years.

Cost allocation

The Department has determined the cost of outputs using the cost allocation system outlined below.

Direct costs are expenses incurred from activities in producing outputs. These costs are charged directly to the related output classes.

Indirect costs are expenses incurred by Corporate Services and by the Office of the Chief Executive. Indirect costs are allocated to each output class based on cost drivers, related activity and usage information.

Notes to the Financial Statements#

Note 1 - Other Revenue
Note 1 - Other Revenue - Prime Minister and Cabinet
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Rental income 50 62 50 55
KiwiSaver tax credit - - 9 11

Total

50 62 59 66

Note 2 - Operating Expenses#

Note 2 - Operating Expenses - Prime Minister and Cabinet
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Operating expenses include:        
Consultants fees 532 577 200 200
Audit fees 46 48 46 48
Premises rental 415 430 415 400
Contract for photocopying services 142 120 100 100
Overseas travel 291 303 300 300
Domestic travel 75 59 60 60
IT costs 577 577 527 580
Insignia expenses 92 100 86 86
Other operating costs 2,418 1,039 2,320 2,317

Total operating costs

4,588 3,253 4,054 4,091

Note 3 - Property, Plant and Equipment#

Fixed asset - Prime Minister and Cabinet
  Plant and equipment
$000
IT equipment
$000
Motor Vehicle
$000
Furniture and Fittings
$000
Total
$000
Cost or revaluation          
Balance as at 1 July 2009 1,119 2,379 170 1,301 4,969
Additions by purchase - 150 - 50 200
Balance as at 30 June 2010 1,119 2,529 170 1,351 5,169
Accumulated depreciation and impairment losses          
Balance as at 1 July 2009 1,018 2,264 111 960 4,353
Depreciation expense 40 135 15 110 300
Balance as at 30 June 2010 1,058 2,399 126 1,070 4,653
Carrying amount as at 30 June 2010 61 130 44 281 516

Note 4 - Intangible Assets#

Intangible assets - Prime Minister and Cabinet
  Acquired software
$000
Total
$000
Cost    
Balance as at 1 July 2009 202 202
Additions by purchase 50 50
Balance as at 30 June 2010 252 252
Accumulated amortisation and impairment losses    
Balance as at 1 July 2009 26 26
Amortisation expense 70 70
Balance as at 30 June 2010 96 96
Carrying amount as at 30 June 2010 156 156

Note 5 - Creditors and Other Payables#

Note 5 - Creditors and Other Payables - Prime Minister and Cabinet
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Trade creditors
Creditors relating to capital expenditure
Accrued liabilities
GST payable
683
-
506
81
540
-
600
80
500
-
500
80
500
-
500
80

Total

1,270 1,220 1,080 1,080

Note 6 - Employee Entitlements#

Note 6 - Employee Entitlements - Prime Minister and Cabinet
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Current Liabilities        
Annual leave 420 381 420 420
Long service leave 51 47 51 51
Retirement leave 144 71 144 144
Sick leave 9 17 9 9
Total current liabilities 624 516 624 624
Non -current Liabilities        
Long service leave 82 67 82 82
Retirement leave 394 399 394 394
Total non-current liabilities 476 466 476 476

Total employees entitlement

1,100 982 1,100 1,100

Note 7 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010#

Note 7 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2010 - Prime Minister and Cabinet
  2007/08 2008/09 2009/10
  Actual
$000
In 2008
Budget
$000
Estimated
Actual
$000
Budgeted
$000
Net surplus/ (deficit) 47 32 270 25
Add/ (less) non-cash items
Depreciation and amortisation expense
288 565 350 370

Total non-cash items

288 565 350 370
Add/ (less) items classified as investing or financing activities
(Gains)/ losses on disposal property, plant and equipment
- - - -
Total items classified as investing or financing activities - - - -
Add/ (less) movement in working capital items        
(Inc) /Dec in prepayment and other receivables (141) - 179 -
(Inc) /Dec in inventories (11) - - -
Inc/ (Dec) in creditors and other payable (103) - (90) -
Inc/ (Dec) in employee entitlements 134 - - -
Inc/ (Dec) in current provisions 434 - (314) -
Net movements in working capital items 313 - (225) -
Inc/ (Dec) in non-current employee entitlements (17) - - -
Inc/ (Dec) in non-current provisions (120) - - -
Net cash from operating activities 511 597 395 395

Forecast Financial Statements State Services Commission#

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

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

Income

         
Crown   39,452 35,564 49,105 25,455
Department(s)   5,298 12,981 5,569 3,869
Other revenue 1 6,983 9,166 10,085 6,227
Gains   1,042 - - -
Interest   - - - -
Total Income   52,775 57,711 64,759 35,551

Expenses

         
Personnel   24,489 26,241 27,141 17,712
Operating   28,254 24,038 30,019 16,370
Depreciation and amortisation   14,928 6,256 5,706 969
Capital charge   1,028 4,023 978 500
Finance costs   - - - -
Other 2 63 - - -
Total Expenses   68,762 60,558 63,844 35,551
Net Surplus / (Deficit)   (2,847) (2,847) 915 -
Other comprehensive income   - - - -
Total Comprehensive Income   (15,987) (2,847) 915 -

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

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

Balance at 1 July

         
General funds   19,707 23,237 13,582 30,484
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Opening Balance   19,707 23,237 13,582 30,484

Changes in Taxpayers' Funds

         
Comprehensive income for the period   (15,987) (2,847) 915 -
Repayment of surplus   (1,448) - - -
Capital contribution   15,274 6,000 15,992 -
Capital withdrawal   (3,964) - (5) (17,759)
Other   - - - -
Total Changes in Taxpayers' Funds   (6,125) 3,153 16,902 (17,759)

Balance at 30 June

         
General funds   13,582 26,390 30,484 12,725
Revaluation reserve   - - - -
Other reserves   - - - -
Taxpayers' Funds Closing Balance   13,582 26,390 30,484 12,725

Forecast Statement of Financial Position as at 30 June 2010#

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

Assets

         

Current Assets

         
Cash and cash equivalents   7,613 6,647 19,577 19,275
Debtors and other receivables   2,755 1,980 1,090 1,187
Prepayments   436 272 346 146
Inventories   - - - -
Other current assets   - - - -
Total Current Assets   10,804 8,899 21,013 20,608

Non-current Assets

         
Property, plant and equipment   6,490 9,801 8,680 3,453
Intangible assets   8,101 21,030 9,815 698
Other non-current assets   - 1,231 1,527 356
Total Non- current Assets   14,591 32,062 20,022 4,507
Total Assets   25,395 40,961 41,035 25,115

Liabilities

         

Current Liabilities

         
Creditors and other payables   6,559 11,502 7,709 9,460
Repayment of surplus   1,448 - - -
Employee entitlements   1,887 1,550 1,462 1,550
Other current liabilities   1,357 818 818 818
Total Current Liabilities   11,251 13,870 9,989 11,828

Non-current Liabilities

         
Provisions   - - - -
Employee entitlements   562 701 562 562
Other non-current liabilities   - - - -
Total Non-current Liabilities   562 701 562 562
Total Liabilities   11,813 14,571 10,551 12,390

Taxpayers' Funds

         
General funds   13,582 26,390 30,484 12,725
Revaluation reserve   - - - -
Other reserves   - - - -
Total Taxpayers' Funds   13,582 26,390 30,484 12,725
Total Liabilities and Taxpayers' Funds   25,395 40,961 41,035 25,115

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

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

Estimated
Actual
$000
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   38,061 35,564 50,630 25,455
Department(s)   5,304 12,128 6,037 3,869
Other   8,166 8,720 7,691 6,227
Interest   - - - -

Payments to:

&nbs