Information supporting the estimates of appropriations

Health Sector - Information Supporting the Estimates of Appropriations for the Government of New Zealand for the Year Ending 30 June 2009

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.

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 Health Sector volume of the Information Supporting the Estimates 2008/09 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#

  • Sector Overview Statement
  • Ministerial Statements of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote Health

Statement of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • Ministry of Health

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

Introduction#

Purpose of Information Supporting the Estimates#

The Information Supporting the Estimates provides members of Parliament with additional performance information in order 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 the Crown and individual departments and Offices 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 House of Representatives. 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
  • National Identity Sector
  • Primary Sector
  • Social Development and Housing Sector.

Votes and departments included in each sector are listed in the following table.

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 Education Review Office Education Review Office
Vote Research, Science and Technology Ministry of Research, Science and Technology
Vote Crown Research Institutes (this Vote is administered by the Treasury, which is in the Finance and Government Administration Sector)  
Environment Sector - B.5A Vol.3  
Vote Environment
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)  
Votes by Sector Departments by Sector
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Parliamentary Service Parliamentary Service
Vote Audit Controller and Auditor-General
Vote Ombudsmen Office of the Ombudsmen
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
National Identity 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 also 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 usually 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 and 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; the remaining type authorises both.

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

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

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

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

Borrowing Expenses Departmental

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

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

Non-Departmental

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

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

Other Expenses Departmental

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

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

Non-Departmental

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

Other expenses is the residual expense 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 sum; and an output expense appropriation can cover more than one class of outputs.

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

Standard Output Expense Appropriation

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

Departmental or non-departmental:  Authorises 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 New Zealand 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 Appropriation (MCOA)

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

Departmental or non-departmental:  Authorises 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 New Zealand 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 Appropriation (RDA)

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

Departmental only:  Authorises a department or an Office of Parliament to incur expenses in supplying a specified 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 to the 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:  Authorises 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 otherwise required to obtain or 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 together 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 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 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. 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.

Sector Overview#

The first component of the Information Supporting the Estimates may include a statement, agreed by all Ministers responsible for appropriations in Votes 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 on future operating intentions of departments in the sector.

Performance Information for Appropriations in Each Vote#

The second component of the Information Supporting the Estimates presents performance information relating to each appropriation, ordered by Vote and appropriation type.

The title page for each Vote specifies the Minister(s) responsible for existing and proposed appropriations in the Vote, the administering department for the Vote, and the Responsible Minister for that 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 a 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 between the appropriations and high-level priorities and outcomes to which they contribute. Where applicable, priorities and outcomes are drawn from the Government's themes and sub-themes, and published strategy documents. Links may also be made to specific Government objectives.
  • Part 1.3 - Trends in the Vote - A presentation of 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 (Budget) year and the following three years (estimated) for types of appropriations and Crown revenue and capital receipts.
    • Budget Policy Initiatives - A table showing how new initiatives (and 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 of Crown revenue and capital receipts by type over the nine financial years covered by the Summary of Financial Activity table, with graphical presentations and explanations of significant changes.
  • Part 1.4 - Reconciliation of Changes in Appropriation Structure - A table providing a reconciliation and explanation of 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 or 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 between revenue from 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 the 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 where the relationships are direct or involve a small number of output expenses. Where the relationships are more complex, this information will be included in high-level objectives of the Vote outlined in Part 1.2. Conditions of use include administrative criteria and processes contained in legislation, regulations and Government decisions, which may be referenced in scope statements or performance measures. The current and past policy initiatives table provides a five-year history of announced initiatives that impact on the Budget year, the preceding year and the following three years.

For MCOAs, 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. Data 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 actual 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 Unrequited 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.

 

Guide to Reading Information Supporting the Estimates (continued)#

 

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 for these appropriations is the same as that for non-departmental benefits and other unrequited expenses, except that conditions on use of an appropriation are not 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 used. 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 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.

Overview of Performance Information

The following table summarises the performance information sought for a ‘standard’ appropriation in each sub-part.

Standard Appropriations Part 2.1 Part 2.2 Part 3.2 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
Expenses N/A N/A N/A
Capital expenditure 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
Expected results N/A N/A N/A N/A
Conditions on use of appropriation N/A N/A
Memorandum account 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
Reporting mechanism N/A N/A N/A N/A N/A N/A

Information on reasons for change, conditions of 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.

Guide to Reading Information Supporting the Estimates (continued)#

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 of each department included in the sector, by reference to performance information set out in Part 2.1 of Votes containing appropriations proposed to be used by the department. This Statement is of particular importance for those departments proposing to use appropriations in more than one Vote.

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 Financial Performance
  • Statement of Forecast Changes in Taxpayers' Funds
  • Statement of Forecast 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.

Statements of Intent of Departments#

The final component of the Information Supporting the Estimates presents the Statements of Intent of departments included in each sector. These Statements contain 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.
  • Additional information and statutory reporting requirements - As required either by the responsible Minister or Minister of Finance, or by specific legislation.

 

Terms and Definitions#

 

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

Appropriation An appropriation is a parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
Appropriation scope One of the defining terms of an appropriation that establishes limits on the activities for which the Crown or an Office of Parliament is authorised to incur expenses or capital expenditure under that appropriation.
Capital expenditure The cost of assets acquired or developed including any ownership interest in entities, but excluding inventory.
Crown revenue 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.
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 hold appropriations within a single Vote, each appropriation has 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 one department.

 

The suite of Budget 2008 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2008. 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 - Health Sector#

Sector Overview Statement#

The Health and Disability Support sector is a large and complex one. It directly employs around 130,000 people and consumes 20 cents of every tax dollar raised. It touches every New Zealander every day, whether it is in the quality of the water we drink, the health information messages we see, as one of the 17.3 million annual visits to a GP or one of the 681,102 annual hospital discharges.

Since becoming Minister of Health in November 2007 it has become apparent that in the majority of areas we do things very well. We have a dedicated workforce ranging from world class medical specialists in tertiary teaching hospitals to equally dedicated aides who work with some of the most vulnerable people within our society. We have a health and disability support structure that replaced the outmoded market driven structures of the 1990s with one that values local representation and local decision making.

We cannot, however, sit back on our laurels and we have much to do to build upon the gains that have been made. I am making clear to the Ministry of Health and the wider sector that I see three key areas as being crucial in taking forward the gains made.

Firstly, the emphasis on preventive and primary care needs to continue. The thrust of prevention around key predictors of chronic conditions such as cigarette consumption, obesity and low levels of exercise needs to continue. Primary care, for most of the population, is the first point of contact for the prevention, diagnosis, treatment and ongoing management of many conditions that are a burden on the national health system. This is the seventh year of a ten year implementation pathway for the Primary Health Care Strategy and many gains, such as reduced costs to see GPs, have been made – and these must now be translated into improved health outcomes.

Secondly, a greater focus on collaboration, across all levels and between all areas, will be a key to performance improvement being achieved. Closer relationships make innovative solutions possible, resulting in a more cohesive and efficient system, with fewer barriers to success. There are some excellent recent examples of partnership arrangements being developed, involving arrangements such as joint purchasing and regional clinical networks. I strongly encourage these collaborations to continue, especially where they enable better operational effectiveness through increased clinician input. The Ministry of Health has a key role in positively supporting the sector to achieve improvements, assessing the level of achievement, and taking the appropriate actions where performance is not at the agreed level.

Thirdly, safety and quality are areas which will be continuously placed at the top of the health and disability support sector's agenda. The whole sector has a role to play in supporting this priority; whether it be DHBs tying part of their budgets to progress on the safety and quality agenda, the Ministry of Health working closely with DHBs to resolve specific blockages, or the whole sector combining through the National Quality Improvement Committee.

Crucial to these three areas being achieved is an enhanced role for the Ministry of Health in driving forward performance improvement. We need to build upon the advantages of a semi-devolved system but not lose sight of the need for a strong centre in providing leadership, advice and being accountable for the system as a whole – this is a key theme of this year's Statement of Intent and is reflected within the Estimates. In addition the whole sector needs to be consistently driving for higher levels of output and

enhanced performance. In her 2008 Statement to Parliament, the Prime Minister underlined this by noting the Government's priority of “driving more productivity and quality in the hospital sector.” The hospital sector may be the most obvious priority in this respect, but the whole sector needs to be committed to continuous improvement. This includes a continued emphasis on improving Māori health and reducing disparities amongst all sections of society.

 

Hon David Cunliffe
Minister of Health

 

Ministerial Statement of Responsibility#

I am satisfied that the information on future operating intentions provided by my department and included in the Information Supporting the Estimates for the Health Sector is in accordance with sections 38, 40 and 41 of the Public Finance Act 1989 and is consistent with the policies and performance expectations of the government.

 

Hon David Cunliffe
Responsible Minister for the Ministry of Health
16 April 2008

 

Chief Executive Statement of Responsibility#

Ministry of Health#

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Health Sector relating to the Ministry of Health and for the Vote / Votes for which the Ministry of Health is the administering department. Specifically, this information is contained in the Ministry of Health'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 (2008/09 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.

Michael McCarthy
Acting Chief Financial Officer
Ministry of Health
16 April 2008
Counter-signed

Stephen McKernan
Director General of Health
Chief Executive
Ministry of Health
16 April 2008

 

Performance Information for Appropriations Vote Health#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Health (M36)

ADMINISTERING DEPARTMENT: Ministry of Health

MINISTER RESPONSIBLE FOR MINISTRY OF HEALTH: Minister of Health

Part 1 - Summary of the Vote#

Part 1.1 - Overview of the Vote

The Minister of Health is responsible for appropriations in the Vote for the 2008/09 financial year totalling just over $12,240 million and covering the following:

Departmental Operating Appropriations

A total of just over $227 million (1.9% of the Vote) relates to the functions of the Ministry of Health for: policy advice, administering the purchasing of national health services, performance monitoring of the funders and providers of health and disability services, developing and administering legislation and regulations related to health service facilities, providers and public safety, ministerial servicing, and information services.

Non-Departmental Operating Appropriations

A total of just over $11,768 million (96.1% of the Vote) is for operating expenses to be incurred on behalf of the Crown and is intended to be spent as follows:

Output Expenses

These total just over $11,745 million (95.9% of the Vote) and are to fund the purchases of health services as follows:

  • Nearly $9,032 million (73.8% of the Vote) to fund health services from DHBs through the DHB appropriations.
  • Just over $880 million (7.2% of the Vote) to purchase national disability support services.
  • Nearly $548 million (4.5% of the Vote) to purchase public health services.
  • Just over $822 million (6.7% of the Vote) to purchase national health services and provide clinical training for health professionals.
  • Nearly $422 million (3.4% of the Vote) to purchase primary health care or other services, and manage health sector risks.
  • Just over $41 million (0.3% of the Vote) to fund other health and disability services.
Other Expenses Incurred by the Crown

A total of just over $23 million (0.2% of the Vote) is for other expenses to fund provider development, legal expenses and international health obligations including World Health Organisation (WHO) membership.

Capital Expenditure

A total of nearly $244 million (2.0% of the Vote) is to provide capital funding and will be spent as follows:

  • just over $201 million (1.6 % of the Vote) is to provide debt or equity for District Health Boards (DHBs) or the New Zealand Blood Service to cover new investments or for other purposes agreed by the Crown including balance sheet restructuring, or to invest in specific health sector assets
  • $15 million (0.1% of the Vote) is to provide interest-free loans to assist people in long term care
  • just over $28 million (0.2% of the Vote) is to purchase or develop assets for use by the Ministry of Health.

The Appropriations in Vote Health are unchanged since they were restructured from 1 July 2007.

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

 

Part 1.2 - High-Level Objectives of the Vote#

 

The main contribution of the health and disability sector is to the Government's 'Families - Young and Old' theme, though the sector will also benefit from economic transformation and strengthened national identity. The Ministry of Health is the lead agency for the sub-theme of 'Better health for all'. This requires us to strengthen our emphasis on reducing inequalities and to contribute to social sustainability.

Government Priorities and Outcomes - Links to Appropriations - Health
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Theme: Families - Young and Old.
Sub-theme: Better Health for All
Societal Outcomes:
Healthy New Zealanders
  • Better health (medium-term area of focus)
  • Reduced inequalities (medium-term area of focus)
  • Better participation and independence
  • Trust and security
System Outcomes:
A fair and functional health system
  • Equity and access
  • Quality
  • Efficiency and value-for-money
  • Effectiveness
  • Inter-sectoral focus
See Statement of Intent for further explanation of societal and system outcomes
All Vote Health appropriations

 

 

Summary of Financial Activity#

Summary of Financial Activity - Health
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 8,556,980 9,349,649 9,051,315 9,838,251 10,850,503 10,779,908 227,455 11,745,094 11,972,549 11,888,546 11,833,954 11,800,899
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 13,711 16,699 48,288 19,347 24,092 24,092 - 23,312 23,312 23,312 23,312 23,312
Capital Expenditure 868,759 224,925 492,211 318,188 334,397 323,999 28,022 216,406 244,428 236,566 240,905 82,000
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

9,439,450 9,591,273 9,591,814 10,175,786 11,208,992 11,127,999 255,477 11,984,812 12,240,289 12,148,424 12,098,171 11,906,211

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 327,516 393,926 401,958 471,150 501,608 499,208 N/A N/A 550,858 550,858 550,858 550,858
Capital Receipts 18,994 26,070 36,825 61,779 73,445 27,500 N/A N/A 73,445 73,445 73,445 73,445

Total Crown Revenue and Receipts

346,510 419,996 438,783 532,929 575,053 526,708 N/A N/A 624,303 624,303 624,303 624,303

Budget Policy Initiatives#

Budget Policy initiatives - Health
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics Clinical Training Agency (M36)
Non-Departmental Output Expense
- 4,957 4,957 4,957 4,957
DHB appropriations (M36)
Non-Departmental Output Expenses
- 397,157 397,157 397,157 397,157
Health Services Funding (M36)
Non-Departmental Output Expense
- 10,192 10,192 10,192 10,192
Management of Residual Health Liabilities and District Health Board Term Debt (M36)
Non-Departmental Output Expense
- 77 77 77 77
Monitoring and Protecting Health and Disability Consumer Interests (M36)
Non-Departmental Output Expense
- 633 633 633 633
National Child Health Services (M36)
Non-Departmental Output Expense
- 1,700 1,700 1,700 1,700
National Contracted Services - Other (M36)
Non-Departmental Output Expense
- 5,958 5,958 5,958 5,958
National Disability Support Services (M36)
Non-Departmental Output Expense
- 38,199 38,199 38,199 38,199
National Elective Services (M36)
Non-Departmental Output Expense
- 6,244 6,244 6,244 6,244
National Emergency Services (M36)
Non-Departmental Output Expense
- 2,736 2,736 2,736 2,736
National Maori Health Services (M36)
Non-Departmental Output Expense
- 426 426 426 426
National Maternity Services (M36)
Non-Departmental Output Expense
- 4,759 4,759 4,759 4,759
National Mental Health Services (M36)
Non-Departmental Output Expense
- 3,612 3,612 3,612 3,612
Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 19,296 19,296 19,296 19,296
Scientific Advice to Support Pest Management Strategies as They Affect Public Health (M36)
Non-Departmental Output Expense
- 3 3 3 3
Autism Spectrum Disorder Work Programme Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 45 45 45 45
National Disability Support Services (M36)
Non-Departmental Output Expense
- 2,500 2,500 2,500 2,500
Improving the Quality of Antenatal Screening for Down's Syndrome Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 43 262 - -
Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 689 5,203 8,032 9,417
National Drug Policy - Mass Media and Education Campaign on Illicit Drugs Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 25 25 25 25
Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 1,250 1,250 1,250 1,250
Pneumococcal Vaccine in National Immunisation Schedule (NIS) Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 10,000 10,000 10,000 10,000
Sexual Health Education and Reduction of Sexually Transmitted Infections Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 1,100 1,100 1,100 1,100
AIMHI Healthy Community Schools - Nurse Component National Child Health Services (M36)
Non-Departmental Output Expense
- 560 1,130 1,130 1,130
Health and Disability Commissioner Advocacy Services Monitoring and Protecting Health and Disability Consumer Interests (M36)
Non-Departmental Output Expense
- 275 550 550 550
Improving Patient Safety Using Bedside Verification of Drugs in DHB hospitals Health Services Funding (M36)
Non-Departmental Output Expense
- 2,300 3,200 3,200 3,200
Environmental Disability Support Services (ESS) National Disability Support Services (M36)
Non-Departmental Output Expense
- - 990 1,500 1,500
Suicide Prevention and National Depression Awareness Initiative Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 75 75 75 75
National Mental Health Services (M36)
Non-Departmental Output Expense
- 2,225 2,825 3,025 3,025
Interim Funding Pool for People with Chronic Health Conditions National Contracted Services - Other (M36)
Non-Departmental Output Expense
- 6,550 10,000 10,000 10,000
Sector Risk Management Health Services Funding (M36)
Non-Departmental Output Expense
- 18,198 16,116 27,252 520
Financial Incentives for DHBs to Realise Efficiencies " Progress Health Targets National Contracted Services - Other (M36)
Non-Departmental Output Expense
- 43,065 43,065 43,065 43,065
Smoking Cessation: New Pharmaceutical and Improved DHB Services Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 8,000 8,000 8,000 8,000
Primary Health Care Strategy Implementation Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 510 510 510 310
Health Services Funding (M36)
Non-Departmental Output Expense
- 19,490 19,490 19,490 19,690
Response to Health Select Committee Inquiry into Obesity and Type 2 Diabetes Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 1,326 1,206 1,206 1,176
Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 11,674 11,794 11,794 11,824
Youth access to Health Services Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 180 80 80 80
National Child Health Services (M36)
Non-Departmental Output Expense
- 1,836 3,812 5,583 5,583
Reorientation of Child and Adolescent Oral Health Services Health Services Funding (M36)
Non-Departmental Output Expense
- 14,000 15,000 20,000 30,000
Migrant Health Initiative Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 83 100 100 -
Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 1,917 1,900 1,900 2,000
HPV Vaccine and Immunisation Social Marketing Campaign Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
2,417 4,137 927 927 927
Public Health Service Purchasing (M36)
Non-Departmental Output Expense
569 43,517 45,627 39,644 25,512
Increase Fraud Detection, Prevention and Investigations Capacity Administration of Legislation and Regulations (M36)
Departmental Output Expense
- 1,000 1,000 - -
Investing in Medicines Sector Infrastructure Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 2,200 2,200 2,200 2,200
National Implementation of InterRAI Assessment Tool National Contracted Services - Other (M36)
Non-Departmental Output Expense
- 1,509 3,000 4,000 4,000
Service Planning and New Health Intervention Assessment Framework (SPNIA) National Contracted Services - Other (M36)
Non-Departmental Output Expense
- 1,340 1,460 1,580 1,580
Maori Nursing Workforce Development Provider Development (M36)
Other Expense to be incurred by the Crown
- 3,000 3,000 3,000 3,000
Pacific Health Provider and Workforce Development Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 200 200 200 200
Provider Development (M36)
Other Expense to be incurred by the Crown
- 2,400 2,400 2,400 2,400
Connected Health Information System Information Services (M36)
Departmental Output Expense
- 10,000 10,000 10,000 10,000
Workforce Development Clinical Training Agency (M36)
Non-Departmental Output Expense
- 7,610 10,000 10,000 10,000
Stabilisation of the Ambulance Sector National Emergency Services (M36)
Non-Departmental Output Expense
6,000 6,900 6,900 6,900 6,900
Electives Initiative - Additional Volumes National Elective Services (M36)
Non-Departmental Output Expense
- 50,000 40,000 35,000 35,000
Sanitary Works Subsidy Scheme (SWSS) for Sewerage Administration of Funding and Purchasing of Health and Disability Support Services (M36)
Departmental Output Expense
- 280 280 280 280
Public Health Service Purchasing (M36)
Non-Departmental Output Expense
- 15,220 12,045 7,245 2,979
Healthy Housing Programme Health Services Funding (M36)
Non-Departmental Output Expense
- 15,000 15,000 - -
Treatment Services for Victims of Sexual Abuse and Assault Public Health Service Purchasing (M36)
Non-Departmental Output Expense
1,000 2,000 2,000 2,000 2,000
Health Capital Envelope Equity for Capital Projects for DHBs and the New Zealand Blood Service (M36)
Capital Expenditure to be Incurred by the Crown
- - - - 50,000
Support for Health Sector to Build Capability and Innovate Health Services Funding (M36)
Non-Departmental Output Expense
- 7,000 7,000 7,000 7,000
Enhancing Surveillance and Control of Anti-Microbial Resistance Health Services Funding (M36)
Non-Departmental Output Expense
- 1,000 1,000 1,000 1,000
Enhanced Access to Hearing Aids for Super Gold Card holders National Disability Support Services (M36)
Non-Departmental Output Expense
- 4,500 4,500 4,500 4,500
Total Operating Initiatives   9,986 822,678 824,716 815,237 781,492
Total Capital Initiatives   - - - - 50,000
Total Initiatives   9,986 822,678 824,716 815,237 831,492

Total Vote: All Appropriations

Trends in comparative voted and actual total expenses (including capital) for Vote Health are shown in Figure 1 below.

The Government has agreed indicative operating allocations for health of $800 million for Budget 2009 and $850 million for Budget 2010 that are not included in Figure 1. These compare with operating allocations of $750 million in each of Budgets 2006, 2007 and 2008. The outyear indicative operating allocations are reviewed as part of the strategy phase in each Budget.

The provision of indicative operating allocations up to three years in advance is intended to facilitate planning in the Health sector. Similarly Health maintains a four year Health capital envelope with additional Government funding in subsequent Budgets used to extend the envelope for a further year.

A significant proportion of the new allocations are used to maintain existing services by enabling the sector to manage the impact of price pressures as well as demographic and technological change. This funding, known as the forecast funding track (FFT) and demographics, amounts to some $496 million of the $750 million allocation in Budget 2008, with the balance of the funding used for various new initiatives.

The demographic funding is allocated to DHBs based on their population shares and Department of Statistics population projections.

Figure 1 - Trends in total voted and actual expenses (capital and operating)

Figure 1 - Trends in Total Voted and Actual Expenses (Capital and Operating)
Figure 1 - Trends in Total Voted and Actual Expenses (Capital and Operating)
Source: Ministry of Health, 2008

Departmental Output Expenses

The departmental output expense structure was changed in 2007/08 to reflect an output focus as recommended by The Treasury.

Trends in departmental output expenses are shown in Figure 2 below.

Figure 2 - Trends in actual and estimated departmental output expenses

Figure 2 - Trends in Actual and Estimated Departmental Output Expenses
Figure 2 - Trends in Actual and Estimated Departmental Output Expenses
Source: Ministry of Health, 2008

The increase in departmental output expenses in 2008/09 is due to additional $10 million provided for the Connected Health information System initiative, smaller funding amounts for other initiatives in Budget 2008 as detailed in the Budget Policy Initiatives table above, the reprioritisation from within existing baselines for the National Cervical Screening Programme Register Redevelopment and the rephasing of some expenditure for programmes between years.

Significant information technology developments have resulted in increasing Departmental expenses in both 2007/08 and 2008/09.

The impacts of Budget policy initiatives from earlier Budgets on individual departmental output expense appropriations are detailed in Part 2.1.

Non-Departmental Output Expenses

Some changes to the non-departmental output expense structure were undertaken in 2007/08. It is expected that further changes to the structure of these appropriations will occur in 2008/09 as part of the Government's Review of Accountability documents (ROADS).

Trends in non-departmental output expenses are shown in Figure 3 below.

Figure 3 - Trends in actual and estimated non-departmental output expenses

Figure 3 - Trends in Actual and estimated Non-Departmental Output Expenses
Figure 3 - Trends in Actual and estimated Non-Departmental Output Expenses
Source: Ministry of Health, 2008

The increase in non-departmental output expenses in 2008/09 is due to additional funding provided for new initiatives in Budget 2008 as shown in the Budget Policy Initiatives table above, and the rephasing of expenditure for various programmes between years.

The impacts of Budget policy initiatives from earlier Budgets on individual departmental output expense appropriations are detailed in Part 2.2.

Non-Departmental Other Expenses

The non-departmental other expenses comprise around 0.2% of Vote Health and provide funding for provider development, to defend the Crown in legal claims, fund legal settlements and contribute to various international health organisations e.g. the World Health Organisation.

An additional $5.4 million for two provider development initiatives is being provided in Budget 2008 as shown in the Budget Policy Initiatives table above. However, as less funding is required for legal settlements in 2008/09, the overall funding for non-departmental other expenses is largely static between 2007/08 and 2008/09.

The impact of Budget policy initiatives from earlier Budgets on individual departmental other expense appropriations are detailed in Part 5.

Departmental Capital

Departmental capital expenditure is included in the trend series for the first time this year, following a change of treatment in these expenses.

This appropriation is used to purchase or develop assets for the Ministry of Health.

Further details are provided in Part 6.1.

Non-Departmental Capital

Trends in non-departmental capital are shown in Figure 4 below.

Figure 4 - Trends in actual and estimated non-departmental capital expenditure

Figure 4 - Trends in Actual and Estimated Non-Departmental Capital Expenditure
Figure 4 - Trends in Actual and Estimated Non-Departmental Capital Expenditure
Source: Ministry of Health, 2008

In 2008/09, these appropriations are largely being used to provide equity and debt for District Health Boards to develop or purchase capital assets with a further $15 million being provided for interest-free loans for people in long-term care.

Significant appropriations existed up until 2007/08 to rollover existing Crown loans held by DHBs (ie, on the basis these loans were repaid then redrawn) or refinance private sector loans held by DHBs with Crown debt.

A decision in July 2007 to extend the criteria whereby existing Crown debt could be renewed for longer terms meant appropriations are no longer required to rollover loans in 2007/08 or 2008/09 (the $392 million initially provided for this purpose in 2007/08 was returned to the Crown).

The following table details the funding for capital projects, the refinancing and rollover of existing loans held by DHBs and other capital funding requirements since 2003/04:

Actual and Estimated Capital Expenditure by Funding Stream

Actual and Estimated Capital Expenditure by Funding Stream - Health
Actual and Estimated Capital Expenditure
$millions
2003/04 Actual 2004/05 Actual 2005/06 Actual 2006/07 Actual 2007/08 Estimated 2008/09 Estimated
Capital Projects 112 67 136 200 189 201
Debt Rollover or Refinancing 664 68 288 92 70 -
Equity Injections and Deficit Support 64 59 41 2 37 -
Residential Care Loans 21 21 14 10 15 15
Total Capital Expenditure 861 214 479 304 311 216

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 - Health
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Impacts: Contribute to system and societal outcomes by funding and purchasing health and disability support services on behalf of the Crown. The services funded and purchased will include some disability support services public health services, specified screening services, mental health services, national personal health services, Māori health services and post graduate clinical education and training.
Objectives: In relation to these services, this departmental output expense provides for the Ministry to:
  • leadership of the broader health sector through implementation of Ministerial and Cabinet decisions, policy and strategy development, and enhanced sector accountability
  • fund services, including negotiating service agreements, provider audit and monitoring against contracts and national quality standards, and
  • ensure the effective utilisation of services funding and analyses expenditure and service trends to inform budget monitoring.
Administration of Funding and Purchasing of Health and Disability Support Services on behalf of the Crown
Impacts: Contribute to system and societal outcomes by administering legislation and regulations and meeting legislative requirements. This is required to administer and enforce statutory obligations, and meet health-specific legislative requirements.
Objectives: In relation to these services, this departmental output expense provides for the Ministry to:
  • Support passage of the Public Health Bill.
  • Implement and enforce health system accountabilities under the Public Health and Disabilities Act 2001.
  • Develop an enhanced regulatory framework for quality and safety, and oversee its rapid uptake and implementation through the DHB system.
  • Promote improvement in public health and safety through statutory obligations set out in the Health Act 1956 (and to be strengthened by the development of the Public Health Bill), the Radiation Protection Act 1965, the Medicines Act 1981, and other public health statutes that provide for communicable disease control, and environmental health (including border control).
  • Lead the whole of government response in preparing for, and responding to, health emergencies requiring a government (national) response as described in the Civil Defence and Emergency Management Act 2002.
  • Discharge the obligations and meet the health-specific requirements of statutes.
  • Implement Te Kokiri through the administration of legislative and statutory obligations and the protection of human rights for those affected by mental illness.
  • Promote continuous improvement in the provision of safe and quality focused health and disability services through statutory obligations set out in the Health and Disability Services (Safety) Act 2001.
  • Promote improvement in health and disability outcomes for people with severe intellectual disability through statutory obligations set out in the Intellectual Disability (Compulsory Care and Rehabilitation) Act 2003.
Administration of Legislation and Regulations
Impacts: Contribute to system and societal outcomes by providing advice and sector-wide leadership on the ownership and performance of Crown Entities.
Objectives: In relation to these services, this departmental output expense provides for the Ministry to:(a) DHB and Crown entity performance management
  • Ensure appropriate system-wide performance management by working with DHBs to reduce inter-DHB variability.
  • Work with DHBs to develop regional and national clinical networks, shared services, and other mechanisms to enhance system-wide cooperation and collaboration.
  • Utilise the Monitoring Intervention Framework (MIF) to evaluate, recognise and encourage improved DHB performance.
  • Assist DHB boards with the resolution of governance issues affecting board performance and the promotion of best governance approaches.
  • Review ongoing financial and non-financial performance of DHBs and Crown entities and consider any appropriate interventions to achieve performance improvement.
  • Align DHB accountability and monitoring arrangements with the work of the Performance Management and Assessment steering group.
(b) DHB and Crown entity ownership advice
  • Provide advice to DHBs and other Crown Entities on how to give effect to key sector-wide priorities and performance targets, and hold these entities accountable for implementation of this advice.
  • Provide advice on the performance of DHBs and other Crown health entities in delivering the Government's New Zealand Health and Disability Strategies.
  • Develop funding advice to DHBs, incorporating interdistrict flows, and National Pricing and the population based funding formula.
  • Provide advice on governance issues affecting DHBs and other Crown entities, including conflicts of interest, succession planning, codes of conduct, delegation policies and approvals for co-operative and collaborative arrangements.
  • Develop funding advice to other Crown health entities.
  • Develop the planning and reporting requirements for DHBs and other Crown entities, manage the DHBs' Crown Funding Agreements, and review the performance reports on each DHB and other Crown entities.
  • Provide advice on ministerial appointments to the governing bodies of the DHBs and other Crown entity boards and on the expectations of board members.
  • Provide advice on industrial relations across the sector.
  • Provide advice on best practice and policy for DHB elections, and assist DHBs to meet their legislative obligations around DHB elections.
  • Provide support and training for Māori participation in DHB decision-making.
  • Lead the negotiations working towards the resolution of contemporary Treaty of Waitangi claims.
  • Co-ordinate sector capital investment plans through the National Capital Committee and the assessment and management of sector capital business cases.
Funding and Performance of Crown Entities
Impacts: Contribute to system and societal outcomes by collecting and analysing health information services.
Objectives: In relation to these services, this departmental output expense provides for the Ministry to provide:
  • custodianship of the Health Information Strategy for New Zealand (HIS-NZ).
  • custodianship and operational responsibility for national collections of health and disability information
  • custodianship and operational responsibility for national health event summaries
  • collection, processing, maintenance, analysis and dissemination of health data, public health intelligence (PHI), statistics and information including strategies to improve data quality and methods to improve data analysis.
  • health information to the sector and appropriate information to wider stakeholders.
  • maintenance and on-going development of key national systems.
  • maintenance and ongoing development of national indexes (ie, National Health Index and Health Practitioner Index) to ensure connectivity to data stored across national collections.
Information Services
Impacts: Contribute to system and societal outcomes by administering and monitoring service agreements and payments for health benefits and service agreements.
Objectives: In relation to these services, this departmental output expense provides for the Ministry to provide:
  • payment and administration of agreements
  • payments to health providers for contracted services
  • collection of payment clinical data from health provider claims
  • information and reports relating to payment and other health data
  • audit and counter-fraud methodologies to ensure that health funds are applied legitimately and appropriately
  • patient eligibility administration.
Payment Services
Impacts: Contribute to system and societal outcomes by providing servicing of the Minister of Health, Associate Ministers of Health and Parliament.
Objectives: In relation to these services, this departmental output expense provides for the Ministry to provide:
  • a timely 'no surprises' policy by consistently informing Ministers in advance of matters of media or public interest that are, or may be, entering the public domain
  • providing advice to the health Ministerial team to support enhanced sector-wide leadership and accountability
  • other advice to ministers not related to interventions planned for the other departmental output expenses but which is either requested by ministers or is of such significance that a minister would be at risk if s/he was not briefed on the matter at hand
  • preparation of draft responses to ministerial correspondence, parliamentary questions, requests for briefing reports and speeches
  • replies to questions asked by the Health Select Committee in relation to the Estimates and Financial Review examinations, responses to petitions, select committee inquiries, and advice to select committees in their consideration of bills
  • advice on appointments to ministerial and occupational statutory bodies and committees
  • administrative and advisory services to Ministerial advisory committees serviced by the Ministry.
Servicing of Ministers and Ministerial Committees
Impacts: Contribute to system and societal outcomes by progressing identified areas of focus.
Objectives: In relation to these services, this departmental output expense provides for the Ministry to deliver initiatives that progress the Minister's priorities of chronic disease, child and youth services, primary health, health of older people, infrastructure and value for money, and broader or internal priorities of elective services, reducing inequalities and improving Māori health.
Strategy, Policy and System Performance

Administration of Funding and Purchasing of Health and Disability Support Services (M36)

Scope of Appropriation

Administration of the funding and purchasing of health and disability support services on behalf of the Crown, including post-clinical education and training. Services funded and purchased include some national personal health services, Māori health services, disability support services, mental health services, public health services and national screening services.

Expenses and Revenue

Expenses and Revenue - Administration of Funding and Purchasing of Health and Disability Support Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 28,894 27,107 32,472
Revenue from the Crown 28,894 27,107 32,472
Revenue from Others - - -

Reasons for Change in Appropriation

This increase arises from additional funding provided for a number of new initiatives in Budget 2008 as detailed in the Current and Past policy initiatives table below and an expense transfer from 2007/08 to 2008/09 for evaluation of building capacity and capability of Māori health providers.

Output Performance Measures and Standards

Output Performance Measures and Standards - Administration of Funding and Purchasing of Health and Disability Support Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Administration of Funding of Health and Disability Support Services

     
The Ministry will plan, fund, purchase and monitor contracts for mental health and addiction services including problem gambling, alcohol and drugs and primary mental health - - Quantity:An estimated 100
Quality:Ministry standard purchasing measure
Timeliness:30/06/09

Māori Provider Development Scheme

     
Administration of the Māori Provider Development Scheme - - Quantity:Funds allocated to successful applicants across four categories
Quality:Decisions on the allocation of funds will be in line with guidelines of the Māori Provider Development Scheme
Timeliness:30/06/09

Performance Management

     
For each contract and provider: contract is managed, relationship is managed, issues are managed - - Quantity:100% of contracts
Quality:All contracts are monitored; all complaints acted on, active management of relationships with all providers; management of issues as they arise
Timeliness:Ongoing through the life of the contract

Purchase Management

     
Services are purchased (repurchased) according to the relevant Purchase Plan - - Quantity:All funded services as they come up for contract renewal and all new services
Quality:Sound contracts awarded through a transparent process that conforms to Ministry standards, and includes the involvement of the relevant users or their representatives and the relevant sector representatives
Timeliness:Services are contracted for according to the timeframes within the relevant purchase plan

Reduce Inequalities

     
The incorporation of improved outcomes for disadvantaged groups into the delivery of services - - Quantity:The service plan, service descriptions and purchase plans all identify outcomes and measures for disadvantaged groups
Quality:Strategic inequality outcomes and targets are agreed
Timeliness:30/06/09

Service Development

     
An annual programme of activity to improve the outcomes of the services that are purchased - - Quantity:One programme of activity with all services being purchased clearly described and with a purchase plan
Quality:
  • Purchase plans conform to MoH standards
  • Relevant users and sector groups will be involved in the process of developing the service specifications
Timeliness:
  • Purchase plans will be completed before service purchasing commences
  • Where they are prompted by a contract expiring a purchase plan will be completed before that expiry

Memorandum Account

Memorandum Account - Administration of Funding and Purchasing of Health and Disability Support Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Problem Gambling      
Opening Balance at 1 July - - -
Revenue 1,251 1,038 1,378
Expenses 1,251 1,038 1,378
Transfers and Adjustments - - -
Closing Balance at 30 June - - -

The Crown cost of these appropriations are offset by levies collected by IRD from the gambling industry.

Current and Past Policy Initiatives

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Administration of Funding and Purchasing of Health and Disability Support Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Autism Spectrum Disorder work programme 2008/09 - 45 45 45 45
Improving the Quality of Antenatal Screening for Down Syndrome 2008/09 - 43 262 - -
National Drug Policy - Mass media and education campaign on illicit drugs 2008/09 - 25 25 25 25
Suicide prevention and National Depression Initiative 2008/09 - 75 75 75 75
Primary Health Care Strategy Implementation 2008/09 - 510 510 510 510
Response to Health Select Committee Inquiry into Obesity and Type 2 Diabetes 2008/09 - 1,326 1,206 1,206 1,176
Youth access to health services 2008/09 - 180 80 80 80
Migrant Health Initiative 2008/09 - 83 100 100 -
HPV vaccine and immunisation social marketing campaign 2008/09 2,417 4,137 927 927 927
Pacific Health Provider and Workforce Development 2008/09 - 200 200 200 200
Sanitary Works Subsidy Scheme (SWSS) for Sewerage 2008/09 - 280 280 280 280 *
Additional Elective Surgical Volumes 2007/08 500 500 500 500 500
Environmental Support Services 2007/08 370 290 330 330 330
Smoking Cessation Programmes 2007/08 300 300 300 300 300
Support for Complementary Medicines and Medical Devices Sectors During Transition to the Australia-New Zealand Therapeutic Products Authority 2007/08 7,980 10,390 10,440 8,460 8,530
Problem Gambling Levy 2007/08 253 681 311 - -
Antenatal Downs Syndrome Screening Programme 2007/08 2,100 2,100 2,100 2,100 2,100
Suicide Prevention and National Depression 2007/08 310 310 210 210 210
Develop the Australia-New Zealand Therapeutics Products Authority 2007/08 4,500 - - - -
Transitional Funding For Primary Healthcare Initiatives 2007/08 100 100 - - -
Programmes To Prevent Family Violence 2007/08 160 160 160 160 160
Autism Spectrum Disorder Work Programme 2007/08 120 135 135 135 135
Cochlear Implant Services For Adults and Newborns 2007/08 60 80 50 30 30
Provide Support For Family Caregivers 2007/08 100 100 100 100 100
AIMHI Health Community Schools - Nurse Component and Project Evaluation 2007/08 175 100 100 40 40
National Drug Policy - Mass Media and Education Programme On Illicit Drugs 2007/08 25 25 25 25 25
Review of Emergent Screening Technology 2007/08 100 100 100 100 100
Meningococcal Vaccine Ongoing Delivery 2006/07 228 250 - - -
Drinking Water Assistance Programme 2005/06 356 356 356 356 356
Community Action on Drugs 2005/06 53 53 53 53 53
National Depression Awareness 2005/06 133 133 133 133 133
Orthopaedics 2004/05 444 444 444 444 444
Suicide Guidelines for Accident and Emergency Departments 2004/05 18 18 18 18 18

 

Administration of Legislation and Regulations (M36)#

 

Scope of Appropriation#

Implementation, enforcement and administration of health legislation and regulations.

Expenses and Revenue#

Expenses and Revenue - Administration of Legislation and Regulations (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 33,433 32,853 33,759
Revenue from the Crown 19,987 20,063 21,634
Revenue from Others 13,446 15,946 12,125

Reasons for Change in Appropriation#

The increase in Revenue from the Crown arises from new funding for fraud and investigations capacity ($1 million), and increased third party revenue from other Crown agencies ($1.100 million). Decreases in forecast third party revenue from other parties include reduced Medsafe revenue ($1 million).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Administration of Legislation and Regulations (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Administration of New Zealand's international and WHO obligations
Maintain relationship between the Ministry and OECD, UN, WHO, APEC, Commonwealth Secretariat, AHMC/AHMAC, and Commonwealth Fund, and implement International Health Regulations (IHR) requirements
- - Quantity:IHR Implementation Report to WHO
Quality:
  • Support New Zealand's membership of WHO Executive Board
  • Effective functioning of national focal point for IHR
Timeliness:Ongoing, as required
An effective legislative and policy environment for improving, promoting and protecting public health
Progress Public Health Bill, provide leadership to Designated Officers in DHBs/Public Health Units (PHUs), and strengthen networks/collaboration with other sectors
- - Quantity:
  • Provide professional leadership to the designated officers in DHBs/PHUs
  • Provide advice to other key agencies on actions to improve public health
Quality:Provide quality and timely advice to the Minister and Health Select Committee to enable progress of the Public Health Bill
Timeliness:As required - subject to Parliamentary process.
Emergency Management
To meet our statutory obligations under the National Civil Defence Emergency Management Act 2002, and the National Civil Defence Emergency Management Plan Order 2002
- - Quantity:Compliance ongoing due to the ad hoc nature of emergencies, response is as required
Quality:Meets the statutory requirements
Timeliness:30/06/09
Lead and coordinate New Zealand's planning and response to a national emergency with a significant health component - - Quantity:At least 6 interagency meetings held and one plan updated
Quality:Evaluation of regular exercises review of emergency plans and standard operating procedure
Timeliness:Ongoing
HealthCert
Management of Enforcement/Complaints made under Health and Disability Services (Safety) Act 2001
- - Quantity:An estimated 135 responses (demand driven)
Quality:
  • 95% of responses responded to within 7 days
  • 95% of reports completed within 30 working days of an investigation audit being completed and obtaining all relevant information obtained
Timeliness:30/06/09
Legislation and policy
Administration of legislation, currently these are Intellectual Disability Compulsory Care and Rehabilitation Act 2003 and Part 4A of the NCSP Register
- - Quantity:Service capacity is maintained so that services are available for persons subject to compulsory care orders under the Acts
Quality:Legislative requirements met
Timeliness:Ongoing as required by orders of the court
Radiation protection services and emergency management
Radiation Protection Act 1965: Licensing of persons to use irradiating apparatus and/or radioactive material
- - Quantity:An estimated 3,300 licences per year
Quality:95% to be completed within 10 days of receipt of all required information
Timeliness:30/06/09
Regulation of Medicine and Medical Devices
Evaluate applications to market new and changed medicines and to carry out clinical trials
- Achieved Quantity
  • 100% of changed medicines notifications and clinical trial applications will receive response within 45 days
  • New medicines applications received after 21 August 2006 will receive a response within 135 days
Quality
  • Consistency with international standards for the safety, quality and efficacy
  • Medsafe will utilise established peer review procedures and advice from expert committees
  • Medsafe will regulate complementary medicines in a manner that is risk-appropriate and well understood
Timeliness:30/06/09

Memorandum Account#

Memorandum Account - Administration of Legislation and Regulations (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
National Radiation Laboratory: Licensing fees account      
Opening Balance at 1 July 561 745 591
Revenue 757 763 757
Expenses 757 702 (737)
Transfers and Adjustments (256) (256) -
Closing Balance at 30 June 305 550 2,085
Medsafe fees      
Opening Balance at 1 July - - 1,096
Revenue 7,773 8,869 8,869
Expenses 7,773 7,773 8,221
Transfers and Adjustments - - -
Closing Balance at 30 June - 1,096 1,744

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Administration of Legislation and Regulations (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increase fraud and investigations capacity 2008/09 - 1,000 1,000 - -
Problem Gambling 2003/04 698 698 698 698 698

 

Funding and Performance of Crown Entities (M36)#

 

Scope of Appropriation#

Administration of funding to DHBs and Crown Entities and the provision of advice on planning and performance, supporting and monitoring the implementation of strategic plans, assistance to meet legislative obligations and regulatory frameworks and advice on governance issues to Ministers and Crown Entities.

Expenses and Revenue#

Expenses and Revenue - Funding and Performance of Crown Entities (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,832 13,136 13,330
Revenue from the Crown 13,832 13,832 13,330
Revenue from Others - - -

Reasons for Change in Appropriation#

This reduction arises from a fall in the attribution of third party revenue from other Crown agencies between 2007/08 and 2008/09.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Funding and Performance of Crown Entities (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

DHB and Crown entity ownership advice

     
Developing advice to DHBs and other Crown Health entities on funding and planning - - Quantity:Funding package distributed and advice on all DAPs and SOIs provided
Quality:Robust and timely advice
Timeliness:30/06/09
Managing DHBs' Crown Funding Agreements - - Quantity
  • Main agreements updated
  • Four omnibus rounds completed
Quality:Agreements are maintained and that variations are actioned in a timely and effective manner
Timeliness:30/06/09
Managing the DHB non-financial reporting process including Ministry assessment, feedback, re-assessment, and reporting - - Quantity:Reports are produced to agreed frequency
Quality:The process is analytical, robust, effective and delivers balanced information and data
Timeliness:Quarterly through to 30/06/09
Advice on ministerial appointments to the governing bodies of DHBs and other Crown entity and on the expectations of board members - - Quantity:Health Reports and verbal briefings as required
Quality:Robust and timely advice
Timeliness:As required
Advice on industrial relations across the sector - - Quantity:Health Reports and verbal briefings as required
Quality:Robust and timely advice
Timeliness: As required

DHB and Crown entity performance

     
Conduct DHB reviews and hold DHBs directly accountable for achievement of DAPs and relevant nationwide health policies and targets - - Quantity:Two DHB reviews completed
Quality:Credible realistic recommendations for improvement
Timeliness:30/06/09
Assessing and evaluating DHB performance against the Monitoring and Intervention Framework, by the MIF committee - - Quantity:Ten meetings per year
Quality:MIF meetings are held on programme and recommendations dealt with in a timely manner
Timeliness:Regularly

Elective services

     
Ongoing development of national prioritisation tools and implementation of new tools - - Quantity:
  • Work with 2 clinical services to review and update national tools
  • Monitor ESPI compliance
  • Six-monthly report on utilisation of prioritisation tools across DHBs
  • Work with DHBs to identify barriers and bottlenecks and provide advice on how these can be reduced, to assist electives uptake and output
Timeliness:Six-monthly review
Monitoring of actual results to elective services target - - Quantity:12 monthly reports
Quality:Timely and accurate reporting of target achievement
Timeliness:Monthly through to 30/06/09

 

Information Services (M36)#

 

Scope of Appropriation#

Provision of national health information services.

Expenses and Revenue#

Expenses and Revenue - Information Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 67,097 65,473 78,999
Revenue from the Crown 66,833 66,833 78,735
Revenue from Others 264 264 264

Reasons for Change in Appropriation#

The increase in this appropriation arises from increased funding for the B4 school check information system ($590,000), the National Cervical Screening Programme Register ($4.140 million) and the Connected Health Information System ($10 million); and expense transfers from 2007/08 to 2008/09 for various systems development projects ($3.866 million). These increases are partly offset by reductions in funding for Capitation Funding and Payments Processing workstream ($1.991 million) and Tranche 1 of the development of the integrated data management system ($3 million); and an expense transfer from 2006/07 for national systems development ($2.200 million).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Information Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Development Programme

     
The Connected Health Programme (including implementation of SSC-led broadband provision) - - Quantity:Complete a set of national reference standards, linking infrastructure (including a health directory search engine), procurement framework and governance and management structure
Quality:Projects within this programme will be delivered within agreed timeframes and budget and that benefits are realised where appropriate
Timeliness:30/06/09
Address Information (Recipient and Provider Identity Services) - - Quantity:The Address Service, which will allow the business and other software applications to verify whether a given address is a correct address in New Zealand
Quality:Projects within this programme will be delivered within agreed timeframes and budget and that benefits are realised where appropriate
Timeliness:31/05/09
Pilot implementation of a new online health information framework that will give all health information consumers improved (faster, easier, lower cost) access to health information - - Quantity:New online health information framework implemented
Quality:Projects within this programme will be delivered within agreed timeframes and budget and that benefits are realised where appropriate
Timeliness:30/06/09
Information Services to the Ministry and the Sector      
Provide management, direction, development services and operational support for all Ministry information systems - - Quantity:Planned availability exceeds 97%
Quality:Unplanned availability is less that 3% (measured monthly)
Timeliness:30/06/09
National Health Identifier (NHI) 98% Achieved Quantity:Planned availability of the NHI exceeds 99.4% (measured monthly)
Quality:
  • Unplanned unavailability of the NHI is less than 0.6% (measured monthly).
  • Average transaction response times are less than 3 seconds (measured at the Ministry firewall)
Timeliness:30/06/09
Health Practitioner Index (HPI) - - Quantity:Planned availability of the HPI exceeds 97% (measured monthly)
Quality:
  • Unplanned unavailability of the NHI is less than 3% (measured monthly)
  • Average transaction response times are less than 3 seconds (measured at the Ministry firewall)
Timeliness:30/06/09

Monitoring the health of New Zealand population

     
The New Zealand Health Monitor National Population Health Survey Programme - -

Quantity:Main survey and data collection commences for New Zealand adult nutrition, tobacco use and oral health surveys
Quality:Milestones and reports delivered within agreed timeframe and budget
Timeliness:30/06/09

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Information Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Connected Health Information System 2008/09 - 10,000 10,000 10,000 10,000
Develop Integrated Data Management Systems - Tranche One 2007/08 17,700 14,700 14,700 14,700 14,700
National Drug Policy - Online Drug Data and Information Systems 2007/08 100 100 100 - -

 

Payment Services (M36)#

 

Scope of Appropriation#

Provision of health sector payments and the administration of contracts and payments.

Expenses and Revenue#

Expenses and Revenue - Payment Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 18,464 18,058 17,606
Revenue from the Crown 18,464 18,464 17,606
Revenue from Others - - -

Reasons for Change in Appropriation#

This appropriation has reduced in 2008/09 due to the transfer of some Information Technology staff, previously charged to Payment Services, to Information Services.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Payment Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Health Payments and Agreements

     
All payments made within KPIs agreed in the Memorandum of Understanding  - - Quantity:Payments up to a volume of 93,000,000 claims per annum
Quality:All appropriately completed claims will be processed within agreed timeframes
Timeliness:Achieve service standard for each claim type as set out in MOU
All Agreements made within KPIs agreed in the Memorandum of Understanding - - Quantity:Agreements up to a volume of 11,000 agreements per annum
Quality:All appropriately completed agreements will be processed within agreed timeframes
Timeliness:5 day turnaround
A National Contact Centre will be provided for the health sector for national health information and payments services - - Quantity:All calls to the National Contact Centre will be answered within the quality and timeliness measures
Quality:
  • Abandonment of calls
  • 80% of calls answered within 20 seconds
Timeliness:Calls answered within 20 seconds

 

Servicing of Ministers and Ministerial Committees (M36)#

 

Scope of Appropriation#

Provision of administrative and advisory support services to the Minister and Associate Ministers of Health and ministerial advisory committees.

Expenses and Revenue#

Expenses and Revenue - Servicing of Ministers and Ministerial Committees (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 21,679 21,041 21,220
Revenue from the Crown 21,679 21,679 21,220
Revenue from Others - - -

Reasons for Change in Appropriation#

This appropriation is reduced in 2008/09 as a result of a fall in attributed revenue from other Government agencies ($609,000), and restructuring within the Ministry of Health ($432,000) which are partly offset by expense transfers from 2007/08 to 2008/09 for the Medical Training Board ($240,000) and the National Ethics Advisory Committee ($60,000); and additional funding for the Family Violence Death Review Committee ($85,000) and the establishment of a Medical Training Board ($137,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Servicing of Ministers and Ministerial Committees (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Establish strategic frameworks for health workforce

     
Leadership and support on workforce planning and development - - Quantity:Develop a National Workforce Strategy for Cabinet approval
Quality:Strategy to follow the Long-Term System Framework and be credible with the sector
Timeliness:30/06/09

Servicing of Ministers, Ministerial Committees and Parliament

     
Draft replies to Parliamentary questions Same quantity and quality measures and standards for 2008/09100% Quantity:Achieved
Quality:Achieved
Timeliness:Not achieved
Quantity:Estimated 3000 replies
Quality:All draft replies peer reviewed and signed out in accordance with delegated authority
Timeliness:95% of draft replies completed within required timeframe
Provide policy advice to Ministers Same measure and standards as for 2008/09 Achieved Quantity:As agreed between the Minister and the Ministry
Quality:All advice and briefings will meet the quality standards set out in the Statement of Objectives
Timeliness:Advice and briefings completed within the requested time frame
Draft responses to Ministerial correspondence Same measure and standards as for 2008/09 Quantity:Estimated 4000
Quality:Achieved and not available
Timeliness:Achieved
Quantity:Provision of an estimated 4500 draft replies to Ministerial correspondence
Quality:All draft replies peer reviewed and signed out in accordance with delegated authority; and 93% of replies signed off at first draft
Timeliness:90% of draft replies to Parliamentary questions completed within the required time frame
Provide Ministers with briefing papers and speeches Same measure and standards as for 2008/09 Quantity:650-800
Quality:Achieved
Timeliness:Not available
Quantity:Provision of an estimated 500 briefing requests and speech requests from the Minister
Quality:
  • All advice and briefings will meet the quality standards for the provision of policy advice and briefings set out in the Statement of Objectives
  • All draft replies peer reviewed and signed out in accordance with delegated authority
Timeliness:95% completed within the required time frame
Provide responses to requests for official information Same measure and standards as for 2008/09 Quantity:Achieved
Quality:Achieved
Timeliness:Not available
Quantity:Provision of an estimated 850 responses to requests for official information
Quality:
  • All decisions made in accordance with the provisions of the Official Information Act 1982
  • All draft replies peer reviewed and signed out in accordance with delegated authority
Timeliness:100% of requests for official information completed within the required time frames
Provide responses to written questions from Select Committee - - Quantity:Provision of 350 responses to written questions from the Health Committee relating to the Financial Review and Estimates examinations
Quality:All draft replies peer reviewed and signed out in accordance with delegated authority
Timeliness:100% of written responses provided within the time frame requested by the Minister of Health and the Health Committee
Make appointments to Ministerial committees and statutory bodies and committees, and support Ministerial Advisory Committees - - Quantity:An estimated 200 appointments made
Quality:All appointments made in accordance with the New Zealand Public Health and Disability Act 2000, DPMC and SSC requirements
Timeliness:30/06/09

Communications Management

     
Notification of national health media stories - - Quantity:90% of national health media stories
Quality:Consistent notification to Ministers in advance of relevant issues entering the public domain
Timeliness:Consistent notification in advance

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Servicing of Ministers and Ministerial Committees (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
National Health Epidemiology and Quality Assurance Committee 2007/08 500 500 500 500 500
National Drug Secretariat 2004/05 124 124 124 124 124
National Drug Intelligence 2003/04 133 133 133 133 133

 

Strategy, Policy and System Performance (M36)#

 

Scope of Appropriation#

Provision of health policy advice, leadership for the health and disability sector, and research and evaluation of long term strategic plans and regulatory frameworks.

Expenses and Revenue#

Expenses and Revenue - Strategy, Policy and System Performance (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 32,432 31,446 30,069
Revenue from the Crown 32,425 32,425 30,062
Revenue from Others 7 7 7

Reasons for Change in Appropriation#

This appropriation has reduced as a result of restructuring within the Ministry of Health ($2.363 million), a reduction of $500,000 for effective interventions and a fall in attributed third party revenue from other government agencies ($206,000). These reductions are partly offset by an increase of $800,000 arising from an expense transfer from 2007/08 to 2008/09 for the Key Directions project.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Strategy, Policy and System Performance (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

A Framework for Integrative Primary Care

     
A framework developed that outlines the principles and models for the integration of complementary and alternative medicine into mainstream primary health care - - Quantity:Integrative primary care framework
Quality :
  • An evidenced based framework that has sector wide agreement
  • The framework document meets Ministry standards for publication and is endorsed by the Minister
Timeliness:Interim Report: 31/08/08Final Report:30/06/09

Establish strategic frameworks for health workforce

     
Review of Health Practitioner Competence Assurance Act - - Quantity:A Health Report to the Minister recommending changes to the Health Practitioners Competence Assurance Act
Quality:Report to include findings and recommendations
Timeliness:31/05/09

Assets and Capital Strategic Framework

     
Design and initiate a framework and processes for the strategic management of assets and capital in health - - Quantity:High level framework developed
Quality:Specifications for high level framework developed in consultation with the sector
Timeliness:30/06/09

Health of Older People: Service Cover Requirements

     
Finalise proposed health of older people service cover requirements - - Quantity:Report provided to the Minister
Quality:Consultation undertaken with key stakeholders and final report endorsed by the Minister
Timeliness:30/11/08

Health Target performance reporting

     
Report to Cabinet on progress on achieving Health Targets at a national level - - Quantity:Quarterly
Quality:Reviewed annually to measure improved outcomes
Timeliness:30/11/08

Healthy Eating Healthy Action

     
Revision of HEHA Implementation plan completed - - Quantity:Comprehensive literature review completed, all DHBs consulted on revised plan, set of specific and measurable targets developed
Quality:
  • Evidence-based new and innovative interventions incorporated into HEHA plan
  • All DHBs incorporate new interventions in their MAPS
  • DHBs and HEHA sector support the set of targets
Timeliness:30/03/09

Implementation of a Strategic Framework for Pacific Health

     
Publish a Strategic Framework for Pacific health, and complete first year Implementation plan - - Quantity:One published document, one completed implementation plan
Quality:Outputs agreed and supported by Pacific Health Sector and Ministry stakeholders
Timeliness:30/03/09

Implementation of Cancer Control Strategy Action Plan 2005-2010

     
Guidance on referral including overcoming barriers to access to cancer services distributed to funders and primary providers - - Quantity:Guidance document produced
Quality:Utilisation of guidance by providers for service improvement
Timeliness:31/12/08
Feasibility study for national colorectal cancer screening programme commenced - - Quantity:Programme plan for feasibility study completed
Quality:Expert advisory group for programme established
Timeliness:31/12/08

Implementation of Te Kokiri: The Mental Health and Addiction Action Plan

     
Advice to Government on options and recommendations for future funding and service models for primary mental health care - - Quantity:1 Health Report to the Minister
Quality:Advice to Minister developed through appropriate consultation with key stakeholders
Timeliness:31/12/08

Implementation of the Well Child Review recommendations

     
Well Child Review recommendations implemented - - Quantity:Report back to Cabinet; and pilot project in one DHB to address health barriers to learning
Quality:Cabinet paper peer-reviewed by external agencies, meets Cabinet Office requirements and approved by the Minister
Timeliness:30/06/09

Improve the position of the medicines sector to deliver excellent health and disability support outcomes.

     
Strategic implementation of Actioning Medicines New Zealand - - Quantity:Examine the process for setting the community pharmaceutical budget
Timeliness:30/06/09

Improving Diabetes/Cardiovascular Disease (CVD) Outcomes

     
Update evidence-based guidelines for "Assessment and management of CVD risk" and "Management of Type 2 diabetes" and disseminate to sector - - Quantity:Guidelines completed
Quality:Sector supported to implement updated guidelines
Timeliness:30/06/09

Development of NZ model of diabetes/CVD utilising health system dynamics modelling

     
  - - Quantity:Basic flow model developed
Quality:DHBs, clinicians and researchers contribute to model development
Timeliness:30/03/09

Improving Oral Health

     
Funding agreements in place with DHBs, implementation commenced and supporting promotional material available to the public - - Quantity:All DHBs have approved funding agreements in place, service re-orientation has commenced, and promotional material is available
Quality
  • All DHBs have agreed project assurance milestones which are being monitored by the Ministry
  • All promotional material aligns with oral health strategic vision and are endorsed by the Oral Health Steering Committee
Timeliness:30/06/09

Improving Quality and Innovation

     
Establish a Health Initiatives Clearing House to promote innovations within the sector - - Quantity:Clearing House launched
Quality:The Clearing House includes information about innovative activities in each DHB
Timeliness:30/06/09

Long Term Conditions Programme

     
A strategic framework for long-term conditions in New Zealand is developed and released - - Quality:Framework is endorsed by Partnership Steering Group
Timeliness:31/01/09

Improve Prioritisation of Additional Funding to Vote Health

     
Budget process input includes prioritisation process for new initiatives - - Quantity:Vote Health prioritisation process
Quality:New initiatives prioritised considering government and Minister's priorities and Health Targets
Timeliness:30/06/09

Long Term Sector Systems Framework

     
Begin initial implementation of the Long Term System Framework - - Quantity:Develop processes to guide sector development
Timeliness:30/06/09

Maternity Services Strategic Plan

     
Development of a Maternity Services Strategic Plan - - Quantity:Strategic Plan provided to the Minister
Quality:Consultation undertaken with steering group and the sector, document meets Ministry standards and is endorsed by the Minister
Timeliness:30/09/08

Monitoring priority areas

     
Monitoring of Ministry of Health work programme from an inequalities perspective - - Quantity:Identify resources
Quality: -Timeliness:30/09/08

National Alcohol Action Plan

     
Development of interagency action plans to guide Government responses to reducing alcohol related harm: (1) a new National Alcohol Action Plan; (2) a new action plan focusing on Foetal Alcohol Spectrum Disorder - - Quantity:Two action plans produced
Quality:Develop a draft action plan and undertake public consultation prior to seeking Cabinet agreement
Timeliness:30/06/09

National immunisation programme

     
Implementation of mass vaccination programme for Human Papillomavirus (HPV) - - Quantity: HPV Programme implemented in all regions
Quality:Consultation undertaken with key stakeholders and programme implemented to the Minister's satisfaction
Timeliness:31/03/09

National Quality Improvement Programme

     
Implement the QIC National Improvement programmes - - Quantity:Service specifications document in the CFA Variations
Quality:Completion of work as directed by the Minister of Health following advice from the Quality Improvement Committee (CIQ)
Timeliness:key quality plan 30/10/08

Primary Health Care Implementation

     
Review Services to Improve Access and provide advice on effectiveness and how changes to operational policy settings can improve effectiveness and accountability - - Quantity:Completion of review, sector engagement satisfactory, implementation of agreed recommendations
Timeliness:30/03/09

Realising the full potential of the Primary Health Care Strategy (PHCS)

     
Report on the review of policy framework and funding formulae with recommendations on how to enhance PHCS - - Quantity:A report with recommendations on how to enhance the PHCS provided to the Minister
Quality:Review undertaken in collaboration with DHBs and consultation undertaken with key stakeholders, interim report endorsed by Minister
Timeliness:31/08/08

Tobacco Control

     
Implementation of DHB tobacco control plans - - Quantity:All DHBs are visited twice to monitor and support progress with implementation
Quality:Priority activities in DHB plans are implemented first
Timeliness:30/06/09

Youth Pregnancy Strategy

     
Develop youth pregnancy strategy, including actions to:
  • reduce the number of unintended pregnancies
  • increase timely access to quality antenatal care and support
  • provide access to a range of coordinated supports following birth
- - Quantity:Final draft strategy provided to Minister
Quality:Advice to Minister developed through appropriate consultation with key stakeholders
Timeliness:30/03/09

Youth Health Strategy

     
Assist DHBs to develop Youth Health Strategies - - Quantity:Assist all DHBs
Timeliness:30/06/09

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Strategy, Policy and System Performance (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Assisted Human Reproduction 2005/06 444 444 444 444 444

 

Part 2.2 - Non-Departmental Output Expenses#

 

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Health
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Facilitate the development of a Health and Disability workforce that meets the needs of New Zealanders.
Impact/Objectives: To manage and prioritise funding for Post Entry Clinical Training for health professionals including GPs and public health doctors, nurses, Māori health professionals and pharmacists.
Clinical Training Agency
Outcome: DHBs are responsible for both the provision of health care services to geographically defined populations and the running of hospital services.
Impact/Objectives: Enable DHBs to provide Health and Disability Service in New Zealand.
Health and Disability Support Services - DHBs
Outcome: To fund a number of sector initiatives, including the Implementation of the Primary Healthcare Strategy.
Impact/Objectives: Services will be provided in accordance with funding arrangements agreed with the Minister. Reports on the delivery of services will be provided to the Ministry by the providers in accordance with the provisions of their organisations' funding agreements.
Health Services Funding
Outcome: To purchase services from the Crown Health Financing Agency including:
  • Providing and managing Crown term loan facilities for DHBs, including refinancing of maturing private bank debt and new loan facilities for major capital works.
  • Managing residual area heath board liabilities, including contingent liabilities arising in relation to the acts or omissions of an Area Health Board prior to 1 July 1993, patient trust funds, and residual property leases.
Impact/Objectives: To provide independent advice to the Minister on the credit worthiness and financial sustainability of DHBs and to manage residual area health board liabilities.
Management of Residual Health Liabilities and District Health Board Term Debt
Outcome: To immunise newborns alongside the Child Immunisation Schedule, with opportunistic vaccination offered to the eligible population who have not completed the full schedule of vaccine does.  Meningococcal Vaccine Programme
Outcome: To provide funding for:
  • Education, advocacy, complaints resolution and proceeding services on behalf of users of health and disability services in accordance with the Health and Disability Commissioner Act 1994.
  • Services to be set out under the Mental Health Commission Amendment Act 2004.
  • District inspector services, to inquire into the status and management of psychiatric patients in accordance with the Mental Health (Compulsory Assessment and Treatment) Act 1992.
  • Review tribunal services to consider the condition of patients who seek reviews, or on whose behalf a review has been sought, in accordance with the Mental Health (Compulsory Assessment and Treatment) Act 1992.
Impact/Objectives: To provide services to monitor and protect health consumer interests.
Monitoring and Protecting Health and Disability Consumer Interests
Outcome: To provide advisory and support services from a number of organisations working at a national level.
Impact/Objectives: To provide advisory and support services by independent service providers.
National Advisory and Support Services
Outcome: To assist families and whanau to improve and protect their children's health.
Impact/Objectives: To contract Plunket to provide Well Child/Tamariki ora services according to the schedule to approximately 85% of New Zealand children.
National Child Health Services
Outcome: To fund a number of national and regional personal health services such as complex burns, mobile surgical services, telephone advice services and sexual and reproductive health services.
Impact/Objectives: To provide other health services for New Zealander's.
National Contracted Services - Other
Outcome: Eligible clients are supported to have a normal life through the purchase of appropriate quality services, service audits and service developments.
Impact/Objectives: To deliver disability support services provided through DHBs and third-party service providers to New Zealanders.
National Disability Support Services
Outcome: To purchase a number of national elective surgical services under the orthopaedic cataract and new elective services initiatives.
Impact/Objectives: To provide funding for the purchase of additional elective surgery services.
National Elective Services
Outcome: To purchase national emergency services such as road and air ambulances, inter-hospital transfers, disaster preparedness, primary response in a medical emergency (PRIME) for rural regions and emergency ambulance communication centre services.
Impact/Objectives: To provide national health emergency services.
National Emergency Services
Outcome: To purchase a number of national Māori health services. These services will be funded on behalf of Māori spanning across DHBs.
Impact/Objectives: To fund the purchase of Māori health services directly by the Crown.
National Māori Health Services
Outcome: To provide funding for the Section 88 Maternity Services Notice. The purpose of this notice is to set out the terms and conditions on which the Crown will make payments to maternity providers for providing primary maternity services.
Impact/Objectives:
  • To give each woman, her partner, and her whanau or family, every opportunity to have a fulfilling outcome to the woman's pregnancy and childbirth by facilitating the provision of primary maternity services that are safe, informed by evidence and that are based on partnership, information, and choice.
  • To recognise that pregnancy and childbirth are a normal life-stage for most women.
  • To provide the woman with continuity of care through her Lead Maternity Carer who is responsible for assessment of her needs, planning of her care with her and the care of her baby.
  • To facilitate the provision of appropriate additional care for those women and babies who need it.
National Maternity Services
Outcome: To fund service level contracts with NGO providers and for the infrastructure initiatives around; workplace development, research and development, provision of sector intelligence and alcohol and other drug services. These initiatives contribute to the Ministry's societal outcomes.
Impact/Objectives:
  • Service delivery.
  • National consistency and coordination.
  • Managing the resource efficiently.
  • Maximising mental health investment in research and workforce.
  • Economy of scale.
  • Capability to manage national procurement procedures.
  • Managing DHB competition for new resources/service development /pilots/funding.
  • National leadership in sector capability and capacity development.
National Mental Health Services
Outcome: To purchase a variety of services provided under the Gambling Act 2003 including; treatment services, public health service and a research programme.
Impact/Objectives: To provide research and implementation of strategies to prevent and minimise the harm from gambling.
Problem Gambling Services
Outcome: Public health services protect people from health threats, promote better health for all New Zealanders, and are targeted at specific groups of people (particularly those in high risk groups).
Impact/Objectives: To provide public health services to New Zealanders.
Public Health Service Purchasing
Outcome: The provision of scientific analysis and advice to support the Ministry's policy advice to the Minister of Health. Including the purchase of services for identification of mosquitoes and science services to support surveillance programmes and responses to incursions and interceptions of exotic mosquitoes of public health significance.
Impact/Objectives: To support surveillance programmes for exotic mosquitoes of public health significance.
Scientific Advice to Support Pest Management Strategies as They Affect Public Health

Clinical Training Agency (M36)#

Scope of Appropriation

Provision of clinical training for doctors, nurses, dentists and other health professionals.

Expenses

Expenses - Clinical Training Agency (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 108,404 104,404 120,219

Reasons for Change in Appropriation

The increase in this appropriation arises largely from new funding provided in the 2008 Budget for Forecast Funding Track ($3.013 million), demographics ($1.944 million) and workforce development ($7.610 million).

Output Performance Measures and Standards

Output Performance Measures and Standards - Clinical Training Agency (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services provided in accordance with funding arrangements agreed with the Minister Achieved for all services provided Achieved 100%
The quantity, quality and nature of the services provided are documented and timeframes specified in these funding arrangements Achieved for all services provided Achieved 100%
Reports on the delivery of services provided to the Ministry of Health by the providers in accordance with the provisions of their organisations' funding agreements Achieved for all reports provided Achieved 100%

Current and Past Policy Initiatives

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Clinical Training Agency (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 4,957 4,957 4,957 4,957
Workforce development 2008/09 - 7,610 10,000 10,000 10,000
Contribution to the Growing Up in New Zealand Longitudinal Study 2008/09 (1,500) - - - -
Forecast Funding Track (FFT) 2007/08 2,993 2,993 2,993 2,993 2,993
Demographics 2007/08 1,643 1,643 1,643 1,643 1,643

 

Health and Disability Support Services - Auckland DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Auckland DHB.

Expenses#

Expenses - Health and Disability Support Services Auckland DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 847,907 847,907 872,851

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises from new funding in the 2008 Budget for Forecast Funding Track ($23.196 million) and demographics ($14.202 million) which is partly offset by a carry-forward from 2006/07 to 2007/08 for Financial Reporting Standard (FRS-3) ($13.863 million).

Output Performance Measures and Standards#

Note - The following table relates to output performance measures and standards for all 21 appropriations for District Health Boards, and not only the Auckland DHB.

Output Performance Measures and Standards - Health and Disability Support Services Auckland DHB (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Funding agreements with providers specify the nature, level, range and volume of services, the location, access, monitoring arrangements, price, duration, scope for variation, and mechanisms for dispute resolution Achieved for all funding agreements Achieved 100%
Funding agreements with providers are written and monitored to ensure delivery of the service obligations specified in those agreements Achieved for all funding agreements Achieved 100%
Monthly financial reports (including statements of financial performance, financial position and cash flows), and quarterly reports will be provided to the Ministry of Health in accordance with requirements in the Funding Agreement with the funders (this reporting includes both quantitative and qualitative information) Achieved for all financial and quarterly reports Achieved 100%

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Note - The following table relates to current and past policy initiatives for all 21 appropriations for District Health Boards, and not only the Auckland DHB. These initiatives apply to all DHBs; however, the quantum and the costs vary depending on the DHB's allocation under the Population Based Funding Formula. It is intended that these tables will be broken down by DHB in future Estimates.

Current and Past Policy Initiatives - Health and Disability Support Services Auckland DHB (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 397,157 397,157 397,157 397,157
Forecast Funding Track (FFT) 2007/08 250,401 250,401 250,401 250,401 250,401
Demographics 2007/08 137,428 137,428 137,428 137,428 137,428
Financial Reporting Standard 3 (FRS3) Revaluations 2006/07 64,423 64,423 64,423 64,423 64,423
Industrial Negotiations 2006/07 15,000 15,000 15,000 15,000 15,000
Industrial Settlements 2004/05 149,169 149,169 149,169 149,169 149,169
Holidays Act 2004/05 44,720 44,720 44,720 44,720 44,720
Disability Support for Older People 2004/05 32,518 32,518 32,518 32,518 32,518
Additional Forecast Funding Track 2005/06 64,798 64,798 64,798 64,798 64,798
Additional Funding for Demographic Changes 2005/06 8,016 8,016 8,016 8,016 8,016
Demographics 2004/05 16,800 16,800 16,800 16,800 16,800
Demographic change - to fund health services for changes in population numbers, age mix, ethnicity and deprivation 2004/05 36,578 36,578 36,578 36,578 36,578
Financial Reporting Standards No. 3 2003/04 97,911 97,911 97,911 97,911 97,911
Funding for DHBs to recognise increased accident costs 2003/04 20,199 20,199 20,199 20,199 20,199

Funding for FFT and Demographics provided in Budgets 2003, 2005 and 2006 is shown in the National Contracted Services - Other appropriation.

 

Health and Disability Support Services - Bay of Plenty DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Bay of Plenty DHB.

Expenses#

Expenses - Health and Disability Support Services Bay of Plenty DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 454,919 454,919 485,464

Reasons for Change in Appropriation#

The increase in this appropriation largely arises from new funding in the 2008 Budget for Forecast Funding Track ($12.765 million) and demographics ($16.892 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Canterbury DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Canterbury DHB.

Expenses#

Expenses - Health and Disability Support Services Canterbury DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 971,660 971,660 1,013,312

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises from new funding in the 2008 Budget for Forecast Funding Track ($27.273 million) and demographics ($12.822 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Capital and Coast DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Capital and Coast DHB.

Expenses#

Expenses - Health and Disability Support Services Capital and Coast DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 515,047 515,047 530,625

Reasons for Change in Appropriation#

The increase in this appropriation arises mainly from new funding in the 2008 Budget for Forecast Funding Track ($14.487 million) and demographics ($652,000).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Counties-Manukau DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Counties-Manukau DHB.

Expenses#

Expenses - Health and Disability Support Services CountiesManukau DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 864,630 864,630 915,851

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises from new funding in the 2008 Budget for Forecast Funding Track ($24.268 million) and demographics ($25.699 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Hawkes Bay DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Hawkes Bay DHB.

Expenses#

Expenses - Health and Disability Support Services Hawkes Bay DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 338,823 338,823 354,798

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises from new funding in the 2008 Budget for Forecast Funding Track ($9.460 million) and demographics ($6.333 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Hutt DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Hutt DHB.

Expenses#

Expenses - Health and Disability Support Services Hutt DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 270,151 270,151 283,441

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises from new funding in the 2008 Budget for Forecast Funding Track ($7.483 million) and demographics ($5.487 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Lakes DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Lakes DHB.

Expenses#

Expenses - Health and Disability Support Services Lakes DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 221,855 221,855 228,582

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises from new funding in the 2008 Budget for Forecast Funding Track ($6.164 million) and demographics ($346,000).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - MidCentral DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from MidCentral DHB.

Expenses#

Expenses - Health and Disability Support Services MidCentral DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 354,834 354,834 368,404

Reasons for Change in Appropriation#

The increase in this appropriation largely arises from new funding in the 2008 Budget for Forecast Funding Track ($9.890 million) and demographics ($3.105 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Nelson-Marlborough DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Nelson-Marlborough DHB.

Expenses#

Expenses - Health and Disability Support Services NelsonMarlborough DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 297,571 297,571 306,518

Reasons for Change in Appropriation#

This appropriation increases mainly as a result of new funding in the 2008 Budget for Forecast Funding Track ($8.354 million) and demographics ($71,000).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Northland DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Northland DHB.

Expenses#

Expenses - Health and Disability Support Services Northland DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 359,716 359,716 383,484

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises as result of new funding in the 2008 Budget for Forecast Funding Track ($10.067 million) and demographics ($11.919 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Otago DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Otago DHB.

Expenses#

Expenses - Health and Disability Support Services Otago DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 403,025 403,025 414,879

Reasons for Change in Appropriation#

The increase in this appropriation arises mainly from new funding in the 2008 Budget for Forecast Funding Track ($11.214 million) and demographics ($124,000).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - South Canterbury DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from South Canterbury DHB.

Expenses#

Expenses - Health and Disability Support Services South Canterbury DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 129,623 129,623 136,576

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises from new funding in the 2008 Budget for Forecast Funding Track ($3.602 million) and demographics ($3.186 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Southland DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Southland DHB.

Expenses#

Expenses - Health and Disability Support Services Southland DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 225,631 225,631 232,245

Reasons for Change in Appropriation#

The increase in this appropriation arises mainly from new funding in the 2008 Budget for Forecast Funding Track ($6.330 million) and demographics ($11,000).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Tairawhiti DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Tairawhiti DHB.

Expenses#

Expenses - Health and Disability Support Services Tairawhiti DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 107,964 107,964 113,466

Reasons for Change in Appropriation#

The increase in this appropriation arises mainly as a result of new funding in the 2008 Budget for Forecast Funding Track ($3.030 million) and demographics ($2.268 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Taranaki DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Taranaki DHB.

Expenses#

Expenses - Health and Disability Support Services Taranaki DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 243,271 243,271 253,444

Reasons for Change in Appropriation#

This appropriation increases mainly as a result of new funding in the 2008 Budget for Forecast Funding Track ($6.719 million) and demographics ($3.175 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

Health and Disability Support Services - Waikato DHB (M36)#

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Waikato DHB.

Expenses#

Expenses - Health and Disability Support Services Waikato DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 722,456 722,456 769,942

Reasons for Change in Appropriation#

This increase in this appropriation arises mainly from new funding in the 2008 Budget for Forecast Funding Track ($20.207 million) and demographics ($26.488 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Wairarapa DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Wairarapa DHB.

Expenses#

Expenses - Health and Disability Support Services Wairarapa DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 95,086 95,086 98,861

Reasons for Change in Appropriation#

This appropriation increases mainly as a result of new funding in the 2008 Budget for Forecast Funding Track ($2.656 million) and demographics ($1.324 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Waitemata DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Waitemata DHB.

Expenses#

Expenses - Health and Disability Support Services Waitemata DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 956,500 956,500 997,874

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises from new funding in the 2008 Budget for Forecast Funding Track ($26.836 million) and demographics ($16.115 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - West Coast DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from West Coast DHB.

Expenses#

Expenses - Health and Disability Support Services West Coast DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 96,138 96,138 100,797

Reasons for Change in Appropriation#

The increase in this appropriation arises mainly from new funding in the 2008 Budget for Forecast Funding Track ($2.173 million) and demographics ($2.643 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health and Disability Support Services - Whanganui DHB (M36)#

 

Scope of Appropriation#

Funding of personal and mental health services including services for the health of older people, provision of hospital and related services and management outputs from Whanganui DHB.

Expenses#

Expenses - Health and Disability Support Services Whanganui DHB (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 161,778 161,778 170,148

Reasons for Change in Appropriation#

This increase in this appropriation arises mainly from new funding in the 2008 Budget for Forecast Funding Track ($4.387 million) and demographics ($3.734 million).

Output Performance Measures and Standards#

Refer to the Output Performance Measures and Standards section for the Auckland DHB appropriation for a list of all output performance measures and standards affecting all 21 District Health Boards.

Current and Past Policy Initiatives#

Refer to the Current and Past Policy Initiatives section for the Auckland DHB appropriation for a list of all current and past policy initiatives affecting all 21 District Health Boards.

 

Health Services Funding (M36)#

 

Scope of Appropriation#

Funding for priority Health sector initiatives including the implementation of the Primary Healthcare strategy and to address sector risks.

Expenses#

Expenses - Health Services Funding (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 132,545 91,545 421,846

Reasons for Change in Appropriation#

The increase in this appropriation mainly arises from new funding changes in the 2008 Budget ($235.063 million) and other funding changes which were approved in baseline updates during 2007/08 ($55.856 million). The new funding changes in the 2008 Budget included sector risk management ($18.198 million), support for the health sector to build capability and innovate ($7 million), reorientation of child and adolescent oral health services ($14 million), Forecast Funding Track ($7.002 million), demographics ($3.190 million), enhancing surveillance and control of anti-microbial resistance ($1 million), Healthy Housing ($15 million), primary health care strategy implementation ($19.490 million), rephasing of existing risk reserves ($54.883 million), contributions from baselines for cross-Government initiatives (-$1.500 million), provision for DHB deficits ($94.500 million), and improving patient safety using the bedside verification of drugs ($2.300 million). Other funding changes approved in baseline updates included a carry-forward from 2007/08 to 2008/09, 2009/10 and 2009/10 for investment in child and adolescent health ($12.476 million), a transfer to the capital appropriation Deficit Support for DHBs in 2007/08 only ($37 million), and transfers to other operating and departmental capital appropriations in 2007/08 only for B4 School Checks ($6.380 million).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Health Services Funding (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services provided in accordance with funding arrangements agreed with the Minister Achieved Achieved 100%
The quantity, quality and nature of the services to be provided are documented and timeframes specified in these funding arrangements Achieved for all services Achieved 100%
Reports on the delivery of services will be provided to the Ministry of Health by the providers in accordance with the provisions of their organisations' funding agreements Achieved for all reports Achieved 100%

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Health Services Funding (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 10,192 10,192 10,192 10,192
Sector risk management 2008/09 - 18,198 16,116 27,252 520
Improving patient safety using bedside verification of drugs in DHB hospitals 2008/09 - 2,300 3,200 3,200 3,200
Primary Health Care Strategy Implementation 2008/09 - 19,490 19,490 19,490 19,490
Reorientation of Child and Adolescent Oral Health Services 2008/09 - 14,000 15,000 20,000 30,000
Healthy Housing Programme 2008/09 - 15,000 15,000 - -
Support for Health Sector to build capability and innovate 2008/09 - 7,000 7,000 7,000 7,000
Enhancing Surveillance and Control of Anti-microbial Resistance 2008/09 - 1,000 1,000 1,000 1,000
Forecast Funding Track (FFT) 2007/08 4,851 4,851 4,851 4,851 4,851
Demographics 2007/08 2,687 2,687 2,687 2,687 2,687
Improve Patient Safety Using Bedside Verification of Drugs in DHB Hospitals 2007/08 3,500 3,500 2,100 1,100 1,000
Transitional Funding For Primary Healthcare Initiatives 2007/08 2,900 2,900 - - -
EnergyWise Home Grants Scheme 2007/08 1,800 1,800 1,800 - -
Sector Risk Management 2007/08 81,000 81,000 81,000 81,000 81,000
Other Initiatives and Risk Management 2005/06 202,936 203,047 209,929 209,929 209,929
Holidays Act 2004/05 7,900 7,900 7,900 7,900 7,900
Other Initiatives and Risk Management 2004/05 7,100 14,211 14,211 14,211 14,211
Disability Support Services and Health of Older People 2005/06 33,745 33,745 33,745 33,745 33,745
Cataracts 2005/06 8,711 6,756 6,756 6,756 6,756
Mental Health Blueprint 2008/09 - 22,222 22,222 22,222 22,222
Orthopaedics 2005/06 26,667 26,667 26,667 26,667 26,667
Primary Health Care Strategy 2005/06 63,111 71,111 71,111 71,111 71,111
Additional Forecast Funding Track 2005/06 736 736 736 736 736
Additional Funding for Demographic Changes 2005/06 92 92 92 92 92
Demographics 2004/05 4,000 4,000 4,000 4,000 4,000
Rollout of the Health Funding Package 2006/07 488,889 488,889 488,889 488,889 488,889
Health Funding Package 2005/06 475,556 475,556 475,556 475,556 475,556
Demographic change - to fund health services for changes in population numbers, age mix, ethnicity and deprivation 2003/04 4,057 4,057 4,057 4,057 4,057

 

Management of Residual Health Liabilities and District Health Board Term Debt (M36)#

 

Scope of Appropriation#

Funding for Crown Health Financing Agency (CHFA) to provide and manage the Crown term debt facilities for DHBs, provide independent advice to the Minister on the credit worthiness and financial sustainability of DHBs, and to manage residual area health board liabilities.

Expenses#

Expenses - Management of Residual Health Liabilities and District Health Board Term Debt (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,674 1,674 1,751

Reasons for Change in Appropriation#

This appropriation increases as a result of funding in the 2008 Budget for Forecast Funding Track ($47,000) and demographics ($30,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of Residual Health Liabilities and District Health Board Term Debt (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The quantity, quality and nature of the services provided as agreed between the Minister and the CHFA, and within the timeframes specified Achieved for all quantity, quality and nature of the services and within the timeframes specified Achieved 100%
Quarterly reports provided to the Minister of Health, summarising delivery of services against specifications in its agreement with the Minister, identifying any significant variations, any corrective actions required to be taken, and any potential risks to delivery according to the agreed quality, quantity and price Achieved for all quarterly reports Achieved 100%
The Statement of Intent and Annual Report of the CHFA tabled in Parliament in accordance with the Crown Entities Act 2004 Achieved Achieved Achieved

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Management of Residual Health Liabilities and District Health Board Term Debt (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 77 77 77 77
Forecast Funding Track (FFT) 2007/08 52 52 52 52 52
Demographics 2007/08 29 29 29 29 29
Additional Forecast Funding Track 2005/06 16 16 16 16 16
Additional Funding for Demographic Changes 2005/06 2 2 2 2 2

 

Meningococcal Vaccine Programme (M36)#

 

Scope of Appropriation#

Funding for the purchase and delivery of a vaccine against the epidemic strain of group B meningococcal disease to target population groups.

Expenses#

Expenses - Meningococcal Vaccine Programme (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,765 6,765 6,632

Reasons for Change in Appropriation#

The minor reduction in this appropriation reflects the planned progress of this initiative. The present three-year initiative ceases from 1 July 2009.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Meningococcal Vaccine Programme (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The terms and conditions of the contract for vaccine development are met by the manufacturer and the Ministry of Health Achieved Achieved Achieved
The terms and conditions of the delivery of the MeNZB vaccine are met by primary care providers and the Ministry of Health Achieved Achieved Achieved
The Ministry will report to Ministers regularly on the progress of MeNZB vaccine delivery and phasing of associated costs Achieved Achieved Achieved

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Meningococcal Vaccine Programme (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Meningococcal Vaccine Ongoing Delivery 2006/07 6,765 6,632 - - -

 

Monitoring and Protecting Health and Disability Consumer Interests (M36)#

 

Scope of Appropriation#

Provision of services to monitor and protect health consumer interests by the Health and Disability Commissioner, District Mental Health Inspectors and Review Tribunals, and the Mental Health Commission.

Expenses#

Expenses - Monitoring and Protecting Health and Disability Consumer Interests (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,751 13,751 14,659

Reasons for Change in Appropriation#

This appropriation increases as a result of new funding in the 2008 Budget for Health and Disability Commissioner advocacy services ($275,000), Forecast Funding Track ($385,000) and demographics ($248,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Monitoring and Protecting Health and Disability Consumer Interests (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Health and Disability Commissioner
Reports of activities, including those of the functionally independent Director of Proceedings and the Director of Health and Disability Services Consumer Advocacy (defined in sections 49 and 25 of the Health and Disability Commissioner Act 1994), are in accordance with the processes outlined in the legislation or approved guidelines, including provision of clear, concise advice; consideration of options and impacts; and being factually correct Achieved for all reports Achieved 100%
The quantity, quality and nature of the services provided as agreed between the Minister of Health and the Commissioner, and within the timeframes specified Achieved for all services provided Achieved 100%
Quarterly reports provided to the Minister of Health summarise delivery of services against specifications in agreement with the Minister, identifying any significant variations, any corrective actions required to be taken, and any potential risks to delivery according to the agreed quality, quantity and price Achieved for all financial and quarterly reports Achieved 100%
Statement of Intent and Annual Report of the Health and Disability Commissioner tabled in Parliament in accordance with the Crown Entities Act 2004 Achieved Achieved Achieved
Mental Health Commission
All activities of and reports prepared in accordance with the functions outlined in the Mental Health Commission Amendment Bill 2006, as it is enacted (which is expected during 2007), or approved guidelines, including provision of clear, concise advice that is evidence-based and factually correct Achieved for all reports Achieved 100%
The quantity, quality and nature of the services provided will be as agreed with the Minister and within the timeframes specified Achieved for all services provided Achieved 100%
Quarterly reports provided to the Minister of Health, summarising delivery of services against specifications in its agreement with the Minister, identifying any significant variations, any corrective actions required to be taken, and any potential risks to delivery according to the agreed quality, quantity and price Achieved for all financial and quarterly reports Achieved 100%
Statement of Intent and Annual Report of the Health and Disability Commissioner will be tabled in Parliament in accordance with the Crown Entities Act 2004 Achieved Achieved Achieved
Mental Health reviews and inquiries
District Inspectors provide monthly reports to the Director of Area Mental Health Services and the Director of Mental Health on their duties undertaken in accordance with the Guidelines for District Inspectors Achieved for all reports Achieved 100%
Review Tribunals will report annually to the Director of Mental Health on their duties undertaken Achieved for all Tribunal Achieved 100%
As and when required, inquiries into the mental health care and treatment of patients will be completed and reported within the agreed timeframes Achieve Achieve Achieve
Outputs will be purchased within the appropriated sum Achieved Achieved Achieved

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Monitoring and Protecting Health and Disability Consumer Interests (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 633 633 633 633
Health and Disability Commissioner advocacy services 2008/09 - 275 550 550 550
Forecast Funding Track (FFT) 2007/08 400 400 400 400 400
Demographics 2007/08 220 220 220 220 220
Health and Disability Commissioner - Expand Advocacy services 2007/08 550 550 550 550 550
Additional Forecast Funding Track 2005/06 117 117 117 117 117
Additional Funding for Demographic Changes 2005/06 14 14 14 14 14

 

National Advisory and Support Services (M36)#

 

Scope of Appropriation#

Provision of advisory and support services by independent service providers.

Expenses#

Expenses - National Advisory and Support Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 340 340 340

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Advisory and Support Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services provided in accordance with funding agreements agreed with the Minister Achieved for all services provided Achieved 100%
The quantity, quality and nature of the services provided are documented and timeframes are specified in those funding agreements Achieved for all services provided Achieved 100%
Reports on the delivery of services provided to the Ministry of Health by the providers in accordance with the provisions of their organisations' funding agreements Achieved for all reports provided Achieved 100%

 

National Child Health Services (M36)#

 

Scope of Appropriation#

For the funding and purchase of child health services directly by the Crown.

Expenses#

Expenses - National Child Health Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 39,555 39,555 41,011

Reasons for Change in Appropriation#

A reduction due to one-off funding in 2007/08 for B4 School Checks ($2.640 million) is partly offset by new funding in the 2008 Budget for Forecast Funding Track ($1.033 million), demographics ($667,000), Youth Access to Health Services ($1.836 million) and AIMHI Healthy Community Schools - Nurse Component ($560,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Child Health Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Plunket is contracted to provide seven core contacts to every child it enrols (as detailed in the Well Child Tamariki Ora National Schedule Handbook) and additional contacts based on assessed need Contract specifies core and additional contacts to be achieved, with specified permissible variances and offsets of variances between output categories Contract in place 100%
The Ministry monitors Plunket's delivery to target of contracted core, additional and first time parent volumes by deprivation group categories 1-7, 8-9 and 10 Monitoring process in place Achieved Achieved

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - National Child Health Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 1,700 1,700 1,700 1,700
AIMHI Healthy Community Schools - Nurse Component 2008/09 - 560 1,130 1,130 1,130
Youth Access to Health Services 2008/09 - 1,836 3,812 5,583 5,583
Forecast Funding Track (FFT) 2007/08 1,111 1,111 1,111 1,111 1,111
Demographics 2007/08 609 609 609 609 609
Plunket Well Child Contacts (Telephone Delivery) 2007/08 1,500 1,500 1,500 1,500 1,500
AIMHI Health Community Schools - Nurse Component and Project Evaluation 2007/08 1,010 1,010 1,010 1,010 1,010

Funding for FFT and Demographics provided in Budgets 2003, 2005 and 2006 is shown in the National Contracted Services - Other appropriation.

 

National Contracted Services - Other (M36)#

 

Scope of Appropriation#

For the funding and purchase of other health services including mobile surgical services, telephone advice services, sexual and reproductive health services, and services associated with the implementation of the Oral Health and Cancer Control Strategies.

Expenses#

Expenses - National Contracted Services Other (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 97,152 88,152 197,946

Reasons for Change in Appropriation#

The increase in this appropriation largely arises from funding changes in the 2008 Budget totalling $64.422 million, the return of funding for income and asset testing to the Crown in 2007/08 only ($26.245 million) and the reallocation of National Services appropriations ($9.034 million). The funding changes in the 2008 Budget include financial incentives for DHBs ($43.065 million), Service Planning and New Health Intervention (SPNIA) ($1.340 million), Interim Funding Pool ($6.550 million), Forecast Funding Track ($3.621 million), demographics ($2.337 million), national implementation of the InterRAI assessment tool ($1.509 million), and a contribution from existing Vote Health funding in 2007/08 only ($6 million) for emergency services.

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Contracted Services Other (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services provided in accordance with funding agreements agreed with the Minister Achieved for all services provided Achieved 100%
The quantity, quality and nature of these services to be provided are documented and timeframes specified in these funding agreements Achieved for all services provided Achieved 100%
Reports on the delivery of services provided to the Ministry of Health by the providers in accordance with the provision of their organisations' funding agreements Achieved for all reports provided Achieved 100%

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - National Contracted Services Other (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 5,958 5,958 5,958 5,958
Interim Funding Pool for People with Chronic Health Conditions 2008/09 - 6,550 10,000 10,000 10,000
Financial incentives for DHBs to realise efficiencies " progress Health Targets 2008/09 - 43,065 43,065 43,065 43,065
National Implementation of InterRAI assessment tool 2008/09 - 1,509 3,000 4,000 4,000
Service Planning and New Health Intervention Assessment Framework (SPNIA) 2008/09 - 1,340 1,460 1,580 1,580
Extreme Complex Burns 2007/08 3,400 3,400 3,400 3,400 3,400
Contribution from existing Vote Health baselines for Emergency Services 2008/09 (6,000) - - - -
Forecast Funding Track (FFT) 2007/08 1,826 1,826 1,826 1,826 1,826
Demographics 2007/08 1,002 1,002 1,002 1,002 1,002
Aged Residential Care 2007/08 37,500 37,500 37,500 37,500 37,500
Pharmaceuticals Budget 2007/08 20,000 20,000 20,000 20,000 20,000
Improve Terms and Conditions For Low-Paid DHB Workforce 2007/08 10,000 10,000 10,000 10,000 10,000
Cancer Control Action Plan 2007/08 6,500 6,500 6,500 6,500 6,500
Extend "Get Checked" Programme to Include Cardiovascular Disease 2007/08 3,300 3,300 3,300 3,300 3,300
Breast Screening Age Extension 2006/07 7,300 7,300 7,300 7,300 7,300
Additional Demographic Funding 2006/07 4,336 4,336 4,336 4,336 4,336
Additional Forecast Funding Track Funding 2006/07 54,882 54,882 54,882 54,882 54,882
Additional Forecast Funding Track 2005/06 4,427 4,427 4,427 4,427 4,427
Additional Funding for Demographic Changes 2005/06 545 545 545 545 545
Removal of Asset Testing 2005/06 12,444 12,444 12,444 12,444 12,444
Family Income Assistance 2004/05 1,244 1,244 1,244 1,244 1,244
ACC Primary Referred Pharmaceuticals and Laboratory Costs 2003/04 9,156 9,156 9,156 9,156 9,156
Removal of Asset Testing 2005/06 106,133 106,133 106,133 106,133 106,133
Demographic change - to fund health services for changes in population numbers, age mix, ethnicity and deprivation 2004/05 2,082 2,082 2,082 2,082 2,082

Funding for FFT and Demographics provided in Budgets 2003, 2005 and 2006 is shown in the National Contracted Services - Other appropriation.

 

National Disability Support Services (M36)#

 

Scope of Appropriation#

Delivery of disability support services provided through DHBs and third-party service providers.

Expenses#

Expenses - National Disability Support Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 834,179 834,179 880,362

Reasons for Change in Appropriation#

This appropriation increases mainly due to new funding in the 2008 Budget for Forecast Funding Track ($23.215 million), demographics ($14.984 million), the autism spectrum disorder work programme ($2.500 million), and hearing aids ($4.500 million) for Super Gold Card holders.

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Disability Support Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services provided in accordance with the output plan agreed with the Minister Achieved for all services provided Achieved 100%
Contracts with the providers specify the nature, level, range, monitoring arrangements, price, duration, and mechanisms for dispute resolution Achieved for all contracts Achieved 100%
Contracts audited and monitored to ensure compliance with the terms specified in the agreements Achieved for all contracts Achieved 100%
Residential services that are provided in community residential homes with 5 or more beds are provided in facilities certified under the New Zealand Health and Disability Services Safety Act 2001 and meet the standards as required under that Act Achieved for all residential services Achieved 100%
In a crisis, where a person's safety is at risk, that person should receive, or be assessed for, disability support services Within 24 hours Achieved 100% within 24 hours
If a person urgently requires assessment for disability support services, but is not in a crisis situation, needs assessment facilitators or health professionals contact that person Within two working days Achieved 100% within two working days
If a person is assessed to urgently require disability support services, but is not in a crisis situation, that person receives services Within two weeks, subject to availability of funding Achieved 100% within two weeks, subject to availability of funding
If the need for disability support services is not urgent, people receive services as soon as possible. 
Timing of services will depend on the person's need relative to that of others, the person's ability to benefit and become more independent as a result of the services provided, and the availability of funding
Achieved Achieved Achieved

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - National Disability Support Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 38,199 38,199 38,199 38,199
Autism Spectrum Disorder work programme 2008/09 - 2,500 2,500 2,500 2,500
Environmental Disability Support Services (ESS) 2008/09 - - 990 1,500 1,500
Enhanced access to hearing aids for Super Gold Card holders 2008/09 - 4,500 4,500 4,500 4,500
Forecast Funding Track (FFT) 2007/08 23,338 23,338 23,338 23,338 23,338
Demographics 2007/08 12,809 12,809 12,809 12,809 12,809
Home-Based Support Services for People Aged Over 65 and Implementation of InterRAI (residential Assessment) Tool 2007/08 20,300 20,300 20,300 20,300 20,300
Environmental Support Services 2007/08 14,000 11,000 11,000 11,000 11,000
Residential Services For Disabled People Aged Under 65 2007/08 11,000 11,000 11,000 11,000 11,000
Home-Based Disability Support Services for People Under 65 2007/08 8,000 8,000 8,000 8,000 8,000
Intellectual Disability (Compulsory Care and Rehabilitation) and High and Complex Needs 2007/08 3,000 3,000 3,000 3,000 3,000
Autism Spectrum Disorder Work Programme 2007/08 2,500 2,500 2,500 2,500 2,500
Cochlear Implant Services For Adults and Newborns 2007/08 2,250 2,850 1,800 1,300 1,300
Provide Support For Family Caregivers 2007/08 1,500 1,500 1,500 1,500 1,500
Setting NZ Superannuation and Veterans Pension Rates 2006/07 1,500 1,500 1,500 1,500 1,500
Kimberley Deinstitutionalisation 2005/06 3,132 3,132 3,132 3,132 3,132
Additional Forecast Funding Track 2005/06 5,905 5,905 5,905 5,905 5,905
Additional Funding for Demographic Changes 2005/06 734 734 734 734 734
Demographic change - to fund health services for changes in population numbers, age mix, ethnicity and deprivation 2004/05 9,431 9,431 9,431 9,431 9,431

 

National Elective Services (M36)#

 

Scope of Appropriation#

Funding for the purchase of additional elective surgery services.

Expenses#

Expenses - National Elective Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 140,309 132,000 192,153

Reasons for Change in Appropriation#

This appropriation increases mainly due to new funding in the 2008 Budget for additional electives volumes ($50 million), Forecast Funding Track ($3.795 million) and demographics ($2.449 million); and a carry-forward from 2007/08 to 2008/09 for the electives capability project ($600,000). These increases are partly offset by a reduction due to a reallocation of National Services appropriations ($4.027 million).

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Elective Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services provided in accordance with funding agreements agreed with the Minister Achieved for all services provided Achieved 100%
The quantity, quality and nature of the services provided are documented and timeframes specified in these funding agreements Achieved for all services provided Achieved 100%
Reports on the delivery of services provided to the Ministry of Health by the providers in accordance with the provisions of their organisations' funding agreements Achieved for all reports provided Achieved 100%
The Health Targets for elective services will be used as an indication of sector performance for management and delivery of elective services Achieved Achieved Achieved
DHBs maintain compliance in all Elective Services Patient Flow Indicators (ESPIs) Achieved for each DHB Achieved 100%
DHB will set an agreed increase in the number of elective service discharges and will provide the level of service agreed Achieved for each DHB Achieved 100%

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - National Elective Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 6,244 6,244 6,244 6,244
Electives Initiative - additional volumes 2008/09 - 50,000 40,000 35,000 35,000
Forecast Funding Track (FFT) 2007/08 4,104 4,104 4,104 4,104 4,104
Demographics 2007/08 2,252 2,252 2,252 2,252 2,252
Additional Elective Surgical Volumes 2007/08 59,000 59,000 59,000 59,000 59,000
Orthopaedics 2004/05 35,111 35,111 35,111 35,111 35,111

Funding for FFT and Demographics provided in Budgets 2003, 2005 and 2006 is shown in the National Contracted Services - Other appropriation.

 

National Emergency Services (M36)#

 

Scope of Appropriation#

For the funding and purchase of health emergency services directly by the Crown.

Expenses#

Expenses - National Emergency Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 65,417 65,417 69,053

Reasons for Change in Appropriation#

This appropriation increases due to new funding in the 2008 Budget for stabilisation of the ambulance sector ($900,000), Forecast Funding Track ($1.663 million) and demographics ($1.073 million).

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Emergency Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Current contracts are in place for national emergency services in accordance with funding arrangements agreed with the Minister Contracts in place for all services Achieved 100%
The quantity, quality and nature of the services provided are documented and timeframes specified in these funding arrangements Achieved for all services provided Achieved 100%
Reports on the delivery of services are provided to the Ministry of Health by the providers in accordance with the provisions of their funding agreements All reports provided Achieved 100%

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - National Emergency Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 2,736 2,736 2,736 2,736
Stabilisation of the ambulance sector 2007/08 6,000 6,900 6,900 6,900 6,900
Forecast Funding Track (FFT) 2007/08 1,924 1,924 1,924 1,924 1,924
Demographics 2007/08 1,056 1,056 1,056 1,056 1,056
Suicide Guidelines for Accident and Emergency Departments 2004/05 204 204 204 204 204

Funding for FFT and Demographics provided in Budgets 2003, 2005 and 2006 is shown in the National Contracted Services - Other appropriation.

 

National Māori Health Services (M36)#

 

Scope of Appropriation#

For the funding and purchase of Māori health services directly by the Crown.

Expenses#

Expenses - National Māori Health Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,639 8,639 9,671

Reasons for Change in Appropriation#

This appropriation increases due to new funding in the 2008 Budget for Forecast Funding Track ($259,000) and demographics ($167,000); and a transfer for the Napier Hospital Treaty of Waitangi (WAI 692) claim in 2007/08 only ($650,000). These increases are partly offset by one-off funding in 2007/08 only for funding from the reappropriation of a debt recovery ($44,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Māori Health Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services provided in accordance with funding arrangements agreed with the Minister Achieved for all services provided Achieved 100%
The quantity, quality and nature of the services provided are documented and timeframes specified in these funding arrangements Achieved for all services provided Achieved 100%
Reports on the delivery of services provided to the Ministry of Health by the providers in accordance with the provisions of their organisations' funding agreements Achieved for all reports provided Achieved 100%

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - National Māori Health Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 426 426 426 426
Forecast Funding Track (FFT) 2007/08 267 267 267 267 267
Demographics 2007/08 147 147 147 147 147

Funding for FFT and Demographics provided in Budgets 2003, 2005 and 2006 is shown in the National Contracted Services - Other appropriation.

 

National Maternity Services (M36)#

 

Scope of Appropriation#

For the funding and purchase of maternity services directly by the Crown.

Expenses#

Expenses - National Maternity Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 109,576 109,576 108,128

Reasons for Change in Appropriation#

This appropriation largely reduces due to a reallocation of National Services appropriations ($6.186 million), which is partly offset by new funding in the 2008 Budget for Forecast Funding Track ($2.892 million) and demographics ($1.867 million).

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Maternity Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Maternity providers are required to comply with all statutory, regulatory, legal, and professional requirements that apply to primary maternity services provided by them Requirement to comply with all professional requirements specified in s.88 Maternity Notice Achieved 100%
Maternity services are provided by suitably skilled and qualified practitioners Achieved for all services provided Achieved 100%
Arrangements for the funding and delivery of maternity services support safe, timely, equitable and culturally appropriate services, and promote a continuity of care Appropriate arrangements included in Notice and reflected in other relevant policies Achieved 100%
Maternity providers are periodically audited against compliance with the Notice Audit programme in place Achieved 100%

Current and Past Policy Initiatives#

These new initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes have been made to some of these initiatives by way of Fiscally Neutral Transfers to other appropriations, devolvement to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - National Maternity Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 4,759 4,759 4,759 4,759
Forecast Funding Track (FFT) 2007/08 3,081 3,081 3,081 3,081 3,081
Demographics 2007/08 1,691 1,691 1,691 1,691 1,691
Rural Support For Primary Maternity Care 2007/08 2,000 2,000 2,000 2,000 2,000

Funding for FFT and Demographics provided in Budgets 2003, 2005 and 2006 is shown in the National Contracted Services - Other appropriation.

 

National Mental Health Services (M36)#

 

Scope of Appropriation#

For the funding and purchase of mental health services directly by the Crown.

Expenses#

Expenses - National Mental Health Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 60,836 60,836 84,279

Reasons for Change in Appropriation#

This appropriation increases mainly due to 2008/09 funding for the Mental Health Blueprint ($22.222 million), and funding in the 2008 Budget for Forecast Funding Track ($2.195 million), demographics ($1.417 million) and the suicide prevention and national depression awareness initiative ($2.225 million).These increases are partly offset by one-off funding in 2007/08 only for effective interventions ($4.341 million) and an in-principle transfer from 2006/07 to 2007/08 for mental health data integration ($777,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - National Mental Health Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services and initiatives provided in accordance with the output plan agreed with the Minister Achieved for all services provided Achieved 100%
Service contracts with providers specify the nature, level, range, monitoring arrangements, price, duration, and mechanisms for dispute resolution Achieved for all services provided Achieved 100%
All service contracts audited and monitored to ensure compliance with the terms specified in the agreements Achieved for all reports provided Achieved 100%

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - National Mental Health Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 3,612 3,612 3,612 3,612
Suicide prevention and National Depression Awareness Initiative 2008/09 - 2,225 2,825 3,025 3,025
Forecast Funding Track (FFT) 2007/08 1,554 1,554 1,554 1,554 1,554
Demographics 2007/08 853 853 853 853 853
Strengthen Primary Mental Healthcare Response to Mental Illness and Addiction 2007/08 5,100 7,600 4,400 3,900 3,900
Suicide Prevention and National Depression Awareness 2007/08 4,270 4,270 5,590 1,950 1,950
Alcohol and Drug Treatment Services Directory 2005/06 16 16 16 16 16
Central Region - Alcohol and Other Drugs Youth Residential Treatment 2004/05 949 949 949 949 949
Mental Health Blueprint Implementation 2004/05 88,889 88,889 88,889 88,889 88,889
Drug and alcohol services (Christchurch) 2003/04 551 551 551 551 551

Funding for FFT and Demographics provided in Budgets 2003, 2005 and 2006 is shown in the National Contracted Services - Other appropriation.

Mental Health Blueprint Implementation - Annual increases in funding of $22 million per annum beyond 2007/08 in order to make $289 million available in 2016/17 was approved in Budget 2004.

 

Problem Gambling Services (M36)#

 

Scope of Appropriation#

Funding to support the research and implementation of strategies to prevent and minimise the harm from gambling, and for the provision of treatment services to problem gamblers and assistance to their families and whanau in accordance with the Gambling Act 2003.

Expenses#

Expenses - Problem Gambling Services (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,289 17,289 17,719

Reasons for Change in Appropriation#

This increase reflects the expected expenditure profile on problem gambling services during the three-year programme (2007/08 to 2009/10) on which the present problem gambling levy has been assessed.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Problem Gambling Services (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Services provided within appropriation in accordance with funding arrangements agreed with the Minister Achieved for all services Achieved 100%
The quantity, quality and nature of the services to be provided are documented and timeframes specified in these funding arrangements Achieved Achieved Achieved

Memorandum Account#

Memorandum Account - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Problem Gambling      
Opening Balance at 1 July 2,343 2,343 2,343
Revenue 17,289 17,289 17,719
Expenses 17,289 17,289 17,719
Transfers and Adjustments - - -
Closing Balance at 30 June 2,343 2,343 2,343

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Problem Gambling Services (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Problem Gambling Levy 2007/08 6,762 7,192 6,983 - -
Problem Gambling Levy 2004/05 10,527 10,527 10,527 10,527 10,527

Public Health Service Purchasing (M36)#

Scope of Appropriation#

Public Health Services funded by the Ministry of Health from DHBs and other public health service providers.

Expenses#

Expenses - Public Health Service Purchasing (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 359,603 358,034 547,707

Reasons for Change in Appropriation#

This appropriation increases largely due to new funding in the 2008 Budget for investing in medicines sector infrastructure ($2.200 million), improving the quality of antenatal screening for Down Syndrome ($689,000), sexual health information and sexually transmitted infections ($1.100 million), pneumococcal vaccine in the National Immunisation Schedule ($10 million), the Sanitary Works Subsidy Scheme (SWSS) ($15.220 million), Forecast Funding Track ($11.727 million), demographics ($7.569 million), mass media and education on illicit drugs (National Drug Policy) ($1.250 million), the response to the Select Committee inquiry into obesity and Type 2 diabetes ($11.674 million), smoking cessation (new pharmaceutical and improved DHB services) ($8 million), the migrant health initiative ($1.917 million), treatment services for victims of sexual abuse and assault ($1 million), and Human Papilloma Virus vaccine and immunisation marketing ($42.948 million). Other increases arise from carryforwards from 2007/08 to 2008/09 for nicotine replacement therapy ($7), sexual health ($2.500 million), workforce development ($1 million), the Sanitary Works Subsidy Scheme ($6.334 million), the drinking water assistance programme (to 2010/11) ($20 million), the NZ Health Monitor National Survey ($4.200 million) and pneumococcal vaccine ($10.684 million). Funding for the SWSS ($3.038 million), the drinking water assistance programme ($1.152 million) and youth lifestyles ("Mission On") ($300,000) were reappropriated in 2008/09 from underspends in 2006/07.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Public Health Service Purchasing (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Funding agreements with providers specify the nature, level, range and volume of services, the location, access, monitoring arrangements, price, duration, scope for variation, and mechanisms for dispute resolution Achieved for all funding agreements Achieved 100%
Funding agreements with providers written and monitored to ensure delivery of the service obligations specified by the Minister Achieved for all funding agreements Achieved 100%
Monthly financial reports (including statements of financial performance, financial position and cash flows), and quarterly reports provided to the Ministry of Health in accordance with requirements in the Funding Agreement with the funders (this reporting includes both quantitative and qualitative information) Achieved for all financial and quarterly reports Achieved 100%

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Public Health Service Purchasing (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 19,296 19,296 19,296 19,296
Improving the Quality of Antenatal Screening for Down Syndrome 2008/09 - 689 5,203 8,032 9,417
National Drug Policy - Mass media and education campaign on illicit drugs 2008/09 - 1,250 1,250 1,250 1,250
Pneumococcal vaccine in National Immunisation Schedule (NIS) 2008/09 - 10,000 10,000 10,000 10,000
Sexual health education and reduction of sexually transmitted infections 2008/09 - 1,100 1,100 1,100 1,100
Smoking cessation: new pharmaceutical and improved DHB services 2008/09 - 8,000 8,000 8,000 8,000
Response to Health Select Committee Inquiry into Obesity and Type 2 Diabetes 2008/09 - 11,674 11,794 11,794 11,824
Sanitary Works Subsidy Scheme (SWSS) for Sewerage 2008/09 - 15,220 12,045 7,245 2,979 *
Migrant Health Initiative 2008/09 - 1,917 1,900 1,900 2,000
Investing in medicines sector infrastructure 2008/09 - 2,200 2,200 2,200 2,200
Treatment services for Victims of Sexual Abuse and Assault 2008/09 1,000 2,000 2,000 2,000 2,000
HPV vaccine and immunisation social marketing campaign 2008/09 569 43,517 45,627 39,644 25,512
Forecast Funding Track (FFT) 2007/08 10,290 10,290 10,290 10,290 10,290
Demographics 2007/08 5,647 5,647 5,647 5,647 5,647
Include Pneumococcal Vaccine In National Immunisation Register 2007/08 17,000 17,000 17,000 17,000 17,000
Healthy Eating - Healthy Action Implementation Plan 2007/08 12,450 12,750 12,750 12,750 12,750
Smoking Cessation Programmes 2007/08 10,600 10,600 10,600 10,600 10,600
Antenatal Downs Syndrome Screening Programme 2007/08 2,900 2,900 2,900 2,900 2,900
Programmes To Prevent Family Violence 2007/08 2,640 2,640 2,640 2,640 2,640
Sexual Health Education and Reducing Sexually Transmitted Infection 2007/08 2,500 3,900 3,400 3,400 2,500
Newborn Metabolic Screening Programme 2007/08 500 500 500 500 500
National Drug Policy - Mass Media and Education Programme On Illicit Drugs 2007/08 250 250 250 250 250
National Drug Policy - Online Drug Data and Information Systems 2007/08 50 200 200 200 200
Healthy Eating, Healthy Action Plan 2006/07 19,033 19,033 19,033 19,033 19,033
Primary Containment 3 Laboratory Capability 2006/07 1,511 1,552 1,552 1,552 1,552
Additional Forecast Funding Track 2005/06 2,367 2,367 2,367 2,367 2,367
Additional Funding for Demographic Changes 2005/06 292 292 292 292 292
Drinking Water Assistance Programme 2005/06 22,222 28,889 28,889 15,555 11,111
Rebranding of Rockquest 2004/05 200 200 200 200 200
Community Action on Drugs 2005/06 735 750 750 750 750
National Depression Awareness 2005/06 2,203 2,083 2,083 2,083 2,083
National Drug Policy - Contestable Pool 2004/05 855 855 855 855 855
One for One Needle and Syringe Exchange 2004/05 889 889 889 889 889
Drug Foundation 2004/05 252 252 252 252 252
Demographic change - to fund health services for changes in population numbers, age mix, ethnicity and deprivation 2004/05 1,583 1,583 1,583 1,583 1,583

 

Scientific Advice to Support Pest Management Strategies as They Affect Public Health (M36)#

 

Scope of Appropriation#

Purchasing taxonomic services to support surveillance programmes for exotic mosquitoes of public health significance.

Expenses#

Expenses - Scientific Advice to Support Pest Management Strategies as They Affect Public Health (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 53 53 56

Reasons for Change in Appropriation#

The increase in this appropriation is a result of new funding in the 2008 Budget for Forecast Funding Track ($2,000) and demographics ($1,000).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Scientific Advice to Support Pest Management Strategies as They Affect Public Health (M36) - Health
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The Ministry of Health will enter into contracts with non-departmental service providers for the provision of science services as and when it becomes necessary Achieved for all services Achieved Achieved
Quality measures for the provision of science services will be as agreed in these contracts between Ministry of Health and non-departmental service providers Achieved for all service providers Achieved Achieved

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Scientific Advice to Support Pest Management Strategies as They Affect Public Health (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Forecast Funding Track (FFT) and Demographics 2008/09 - 3 3 3 3

 

Summary of Service Providers#

 

The following table summarises the resources to be allocated through Vote Health 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.

Summary of Service Providers - Summary of Service Providers - Health
Provider 2007/08
Budgeted
$000
2007/08
Estimated Actual
$000
2008/09
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment

Crown Entities

         

District Health Boards

      Provider's Annual Report  
  • DHB appropriations
8,638,585 8,638,585 9,031,562    
  • Clinical Training Agency (part)
90,950 90,950 Not yet known    
  • National Disability Support Services (part)
149,252 149,252 Not yet known    
  • Health Services Funding (part)
1,157 1,157 Not yet known    
  • National Contracted Services - Other (part)
2,972 2,972 Not yet known    
  • National Māori Health Services (part)
2,581 2,581 Not yet known    
  • National Mental Health Services (part)
3,221 3,221 Not yet known    
  • Problem Gambling Services (part)
178 178 Not yet known    
  • Public Health Service Purchasing (part)
129,253 129,253 Not yet known    

Mental Health Commission

      Provider's Annual Report  
Monitoring and Protecting Health and Disability Consumer Interests 3,034 3,034 3,034    

Health Sponsorship Council

      Section 32A report  
  • Problem Gambling Services (part)
1,394 1,394 Not yet known    
  • Public Health Service Purchasing (part)
12,517 12,517 Not yet known    

Pharmac

      Provider's Annual Report  
National Contracted Services - Other 12,916 12,916 12,916    

Health and Disability Commissioner

      Provider's Annual Report  
Monitoring and Protecting Health and Disability Consumer Interests 9,372 9,372 9,622    

Crown Health Financing Agency

      Provider's Annual Report  
Management of Residual Health Liabilities and District Health Board Term Debt 1,883 1,883 1,883    

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

 

Part 5 - Details and Expected Results for Other Expenses#

 

Part 5.2 - Non-Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Health
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Funding is provided to the Australian and New Zealand Dialysis and Transplant Registry Australian Kidney Foundation
Funding is provided for New Zealand's membership to the World Health Organisation and grants of extra budgetary contributions are provided to specific World Health Organisation projects International Health Organisations
Funding is provided for costs associated with defence of legal claims and for the settlement of legal claims against the Crown Legal Expenses
Funding support and assistance is provided for the development of third-party health and service workforce that targets specific population groups Provider Development

Australian Kidney Foundation (M36)

Scope of Appropriation

Contribution to the Australian Kidney Foundation to receive the Australia and New Zealand Dialysis and Transplant Registry.

Expenses

Expenses - Australian Kidney Foundation (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15 15 15

Expected Results

Expected Results - Australian Kidney Foundation (M36) - Health
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Access is provided for the New Zealand health sector to the Australian transplant registry for kidneys As required Achieved As required

 

International Health Organisations (M36)#

 

Scope of Appropriation#

Funding for New Zealand's membership to the World Health Organisation (WHO), and the contribution to specific WHO projects.

Expenses#

Expenses - International Health Organisations (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,230 2,230 2.230

Expected Results#

Expected Results - International Health Organisations (M36) - Health
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Briefings provided to government on the performance of WHO as an organisation and on individual projects that it undertakes Annual Achieved Annual

 

 

Scope of Appropriation#

Funding for the defence and settlement of legal claims against the Crown.

Expenses#

Expenses - Legal Expenses (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,958 7,958 1,778

Reasons for Change in Appropriation#

This appropriation reduces as a result of the reappropriation of one-off funding in 2007/08 only for legal settlements from under expenditure in 2006/07 ($5.530 million), and funding in 2007/08 only for legal expenses associated with the Napier Hospital Treaty (WAI 692) claim ($650,000).

Expected Results#

Expected Results - Legal Expenses (M36) - Health
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Funding made available As required Achieved As required

 

Provider Development (M36)#

 

Scope of Appropriation#

Funding support and provide assistance for the development of the third party health service workforce, in particular, Māori and Pacific people's providers.

Expenses#

Expenses - Provider Development (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,889 13,889 19,289

Reasons for Change in Appropriation#

This appropriation increases due to funding provided in the 2008 Budget for Māori nursing workforce development ($3 million) and Pacific health provider and workforce development ($2.400 million).

Expected Results#

Expected Results - Provider Development (M36) - Health
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Performance is delivered according to the conditions of the grants, as set out in the contracts signed with the Ministry 100% Achieved 100%

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Provider Development (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Māori Nursing workforce development 2008/09 - 3,000 3,000 3,000 3,000
Pacific Health Provider and Workforce Development 2008/09 - 2,400 2,400 2,400 2,400

 

Reporting Mechanisms#

 

Reporting Mechanisms - Reporting Mechanisms - Health
Appropriation Reporting Mechanism
Australian Kidney Foundation Reporting of these non-departmental appropriations for expenditure incurred by the Crown will be undertaken under the provisions of section 32A of the Public Finance Act 1989.
International Health Organisations
Legal Expenses
Provider Development

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 - Health
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
To purchase and develop assets by and for the use of the Ministry of Health. Ministry of Health - Capital Expenditure PLA

Ministry of Health - Capital Expenditure PLA (M36)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - Ministry of Health Capital Expenditure PLA (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 14,803 4,405 8,145
Intangibles 3,734 3,734 19,877
Other - - -
Total Appropriation 18,537 8,139 28,022
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 14,803 4,405 8,145
Intangibles 3,734 3,734 19,877
Other - - -
Total Appropriation 18,537 8,139 28,022

Reasons for Change in Appropriation

The reduction in Property, Plant and Equipment arises from planned purchases of computer hardware reducing by $7.303 million in 2008/09. This reduction is partly offset by an increase in purchases of plant and equipment ($595,000) and property ($50,000).

Intangibles increase by $16.143 million in 2008/09 as a result of the National Systems Development project.

Expected Results

Expected Results - Ministry of Health Capital Expenditure PLA (M36) - Health
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
To maintain and enhance the Ministry's infrastructure so it can support it's own operations and those of the wider Health sector 18,537 8,139 28,022

 

Part 6.2 - Non-Departmental Capital Expenditure#

 

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Health
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
To maintain and improve Health sector assets, including hospitals and other infrastructure Equity for Capital Projects for DHBs and the New Zealand Blood Service
Loans for Capital Projects
Health Sector Projects
Response to Significant Health Emergencies
To maintain the Government's equity interest in District Health Boards Deficit Support for DHBs
To enable District Health Boards to replace private sector debt with Crown debt Refinance of DHB Private Debt
To enable older people moving into residential care to access interest free loans rather than sell their homes if there are above the asset thresholds Residential Care Loans

Equity for Capital Projects for DHBs and the New Zealand Blood Service (M36)#

Scope of Appropriation

Capital contributions to DHBs and the New Zealand Blood Service to cover new investments and reconfiguration of their balance sheets.

Capital Expenditure

Capital Expenditure - Equity for Capital Projects for DHBs and the New Zealand Blood Service (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 83,571 83,571 158,686

Reasons for Change in Appropriation

The rephasing of projected expenditure has resulted in funding being transferred from 2007/08 into the outyears

Expected Results

Expected Results - Equity for Capital Projects for DHBs and the New Zealand Blood Service (M36) - Health
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Drawdown of equity for capital projects and the reconfiguration of balance sheets by District Health Boards and the New Zealand Blood Service 83,571 83,571 158,686

Project details for non-departmental capital expenditure are not available at this time. As the Health Sector capital process is currently undertaken to a different timeframe than the Budget, it is proposed to have these processes aligned and details will be reported in the Budget 2009 Estimates.

Current and Past Policy Initiatives

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Equity for Capital Projects for DHBs and the New Zealand Blood Service (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Government contribution to the Health Capital Envelope in Advance of Budget 2004 2006/07 38,000        
Government contribution to the Health Capital Envelope in Budget 2006 2006/07 28,000 65,000 23,000 - -
Government contribution to the Health Capital Envelope in Budget 2007 2010/11       60,000  
Government contribution to the Health Capital Envelope in Budget 2008 2011/12 - - - - 50,000

 

Health Sector Projects (M36)#

 

Scope of Appropriation#

Capital investment in specific health sector assets.

Capital Expenditure#

Capital Expenditure - Health Sector Projects (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 3,765

Reasons for Change in Appropriation#

Funding set aside for particular health sector capital requirements has been reappropriated from 2006/07 reflecting the revised phasing of this expenditure.

Expected Results#

Expected Results - Health Sector Projects (M36) - Health
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Drawdown of funding for specific health sector assets - - 3,765

Project details for non-departmental capital expenditure are not available at this time. As the Health Sector capital process is currently undertaken to a different timeframe than the Budget, it is proposed to have these processes aligned and details will be reported in the Budget 2009 Estimates.

 

Loans for Capital Projects (M36)#

 

Scope of Appropriation#

Provision of new loans to DHBs for the purpose of facilities redevelopment and other purposes agreed by the Crown including balance sheet reconfiguration.

Capital Expenditure#

Capital Expenditure - Loans for Capital Projects (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 105,692 105,692 38,955

Reasons for Change in Appropriation#

The funding for capital projects and balance sheet reconfiguration in the Health sector is generally appropriated in the first instance to the 'Equity for Capital Projects for DHBs and the New Zealand Blood Service' capital appropriation. Once the DHB's or the New Zealand Blood Service's preference for debt for particular requirements (in full or part) is established and approved, the necessary funds are transferred to this appropriation so they can be drawdown. Requirements for new loans in excess of the funding appropriated in 2008/09 have yet to be agreed.

Expected Results#

Expected Results - Loans for Capital Projects (M36) - Health
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Provision of new loans to DHBs for the purpose of facilities redevelopment and other purposes agreed by the Crown including balance sheet reconfiguration 105,692 105,692 38,955

Project details for non-departmental capital expenditure are not available at this time. As the Health Sector capital process is currently undertaken to a different timeframe than the Budget, it is proposed to have these processes aligned and details will be reported in the Budget 2009 Estimates.

Current and Past Policy Initiatives#

These policy initiatives have been shown against their original appropriation, or the current equivalent. Subsequent changes may have been made to some of these initiatives by way of fiscally neutral transfers to other appropriations, devolution of funding to DHBs or rephasing of the expenditure through expense transfers.

Current and Past Policy Initiatives - Loans for Capital Projects (M36) - Health
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Contribution from Government in advance of Budget 2004 2006/07 58,000 - - - -

 

Residential Care Loans (M36)#

 

Scope of Appropriation#

Funding to provide interest-free loans to people entering into aged residential care facilities.

Capital Expenditure#

Capital Expenditure - Residential Care Loans (M36) - Health
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,000 15,000 15,000

Expected Results#

Expected Results - Residential Care Loans (M36) - Health
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Funding for residential care loans 15,000 15,000 15,000

 

Reporting Mechanisms#

 

Reporting Mechanisms - Reporting Mechanisms - Health
Appropriation Reporting Mechanism
Equity for Capital Projects for DHBs and the New Zealand Blood Service Annual reports of District Health Boards
Loans for Capital Projects Annual reports of District Health Boards
Health Sector Projects Annual reports of District Health Boards
Response to Significant Health Emergencies Annual reports of District Health Boards
Deficit Support for DHBs Annual reports of District Health Boards
Refinance of DHB Private Debt Annual reports of District Health Boards
Residential Care Loans Nil

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

 

Statement of Forecast Service Performance of Departments#

 

Statement of Forecast Service Performance#

The Statement of Forecast Service Performance of departments included in the Health Sector comprise the service performance information for all departmental output expense appropriations that are proposed to be used by those departments. In this context, service performance information comprises the scope, expenses and revenue, and output performance measures and standards for each class of outputs within those departmental appropriations, as set out in Part 2.1 of the Performance Information for Appropriations in Each Vote.

The following table identifies the classes of outputs incorporated in the Statement of Forecast Service Performance for each department in the Health Sector. In some circumstances, this may include reference to classes of outputs within appropriations presented in Votes in other sectors.

Department Composition of Statement of Forecast Service Performance
Ministry of Health The service performance information in Part 2.1 for the classes of outputs within all the departmental output expense appropriations in Vote Health.

Forecast Financial Statements of Departments#

Statement of Common Accounting Policies#

These accounting policies have been applied in the forecast financial statements of all departments and Offices of Parliament except as outlined in the statement of entity-specific accounting policies for individual departments or Offices of Parliament.

These forecast financial statements are prepared in accordance with section 38 of the Public Finance Act 1989. The purpose of the forecast financial statements is to facilitate Parliament's consideration of appropriations for, and planned performance of, departments and Offices of Parliament. Use of this information for other purposes may not be appropriate. It is not intended that these forecast financial statements be updated subsequent to publication.

Statement of Compliance

These forecast financial statements for the year ended 30 June 2009 comply with FRS-42 Prospective Financial Statements.

Specific Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these statements. These statements have been prepared on a going-concern basis. The measurement base applied is historical cost modified by the revaluation of certain assets and liabilities as identified in this statement of accounting policies.

The accrual basis of accounting has been used unless otherwise stated. These financial statements are presented in New Zealand dollars, which is the entity's functional currency. All financial information presented has been rounded to the nearest thousand.

Judgements and Estimations

The preparation of forecast financial statements in conformity with FRS-42 requires judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates and these variations may be material.

Revenue

Revenue is derived through the provision of outputs to the Crown and to third parties. Revenue is recognised in the forecast statement of financial performance when earned.

Leases

Operating Leases

Where substantially all of the risks and rewards of ownership are retained by the lessor, leases are classified as operating leases.

Lease payments under operating leases are recognised as an expense on a straight-line basis over the lease term.

Finance Leases

Leases which effectively transfer to the lessee substantially all the risks and rewards incidental to ownership of the leased items are classified as finance leases. These are capitalised at the lower of the fair value of the asset or the present value of the minimum lease payments. The leased assets and the corresponding lease liabilities are recognised in the statement of financial position. The leased assets are depreciated over the period the entity is expected to benefit from their use. The interest expense component of finance lease payments is recognised in the statement of financial performance.

Borrowing Costs

Borrowing costs are recognised as an expense when incurred.

Property, Plant and Equipment

Property, plant and equipment, other than land and buildings, is stated at cost less accumulated depreciation and impairment losses. Land and buildings are stated at fair value as determined by an independent registered valuer. Fair value is determined using market-based evidence. Land and buildings are revalued with sufficient regularity to ensure that carrying value is not materially different from fair value at the end of the reporting period. Additions between revaluations are recorded at cost. Any capitalisation thresholds applied are set out in the statement of entity-specific accounting policies.

Depreciation

Depreciation is provided on a straight-line basis so as to allocate the cost [or valuation] of an item of property, plant and equipment, less any estimated residual value, over its estimated useful life.

The estimated useful lives are set out in the statement of entity-specific accounting policies.

Leasehold improvements are capitalised and the cost is amortised over the unexpired period of the lease or the estimated useful life of the improvements, whichever is shorter.

Items under construction are not depreciated. The total cost of a capital project is transferred to the appropriate asset class on its completion and then depreciated.

Intangible Assets

Intangible assets with finite useful lives (such as computer software) are recorded at cost less accumulated amortisation and impairment losses.

Any capitalisation thresholds applied are set out in the statement of entity-specific accounting policies.

Amortisation is charged to the statement of financial performance on a straight-line basis over the estimated useful life of the asset.

The estimated useful lives are set out in the statement of entity-specific accounting policies.

Intangible assets with indefinite useful lives are not amortised, but are tested at least annually for impairment.

Where there is an active market for an intangible asset, the asset is recorded at a revalued amount, being fair value less any subsequent accumulated amortisation and accumulated impairment losses.

Cash and Cash Equivalents

Cash includes cash on hand and funds on deposit with banks with a maturity of 3 months or less from date of acquisition.

Debtors and Other Receivables

Debtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest rate, less impairment charges. Allowances for estimated irrecoverable amounts are recognised when there is objective evidence that the asset is impaired.

Inventories

Inventories held for sale or use in the production of goods and services on a commercial basis are recorded at the lower of cost and net realisable value. The cost of purchased inventory is determined using the weighted average cost method.

Inventories held for distribution for public benefit purposes are recorded at cost (calculated using the weighted average cost method) adjusted when applicable for any loss of service potential. Where inventories are acquired at no cost, or for nominal consideration, the cost is the current replacement cost at the date of acquisition.

Employee Entitlements

Pension Liabilities

Obligations for contributions to defined contribution retirement plans are recognised in the statement of financial performance as they fall due.

Other Employee Entitlements

Employee entitlements to salaries and wages, annual leave, sick leave, long service leave, retiring leave and other similar benefits are recognised in the statement of financial performance when they accrue to employees. Employee entitlements to be settled within 12 months are reported at the amount expected to be paid. Long-term employee entitlements are reported at the present value of the estimated future cash outflows.

Termination Benefits

Termination benefits are recognised in the statement of financial performance only when there is a demonstrable commitment to either terminate employment prior to normal retirement date or to provide such benefits as a result of an offer to encourage voluntary redundancy. Termination benefits to be settled within 12 months are reported at the amount expected to be paid. Other termination benefits are reported at the present value of the estimated future cash outflows.

Onerous Contracts

Where the benefits to be derived from a contract are lower than the unavoidable costs of meeting the obligation under the contract, a provision is recognised. The provision is stated at the present value of the future net cash outflows expected to be incurred in respect of the contract.

Foreign Currency

Foreign currency transactions are reported at the New Zealand dollar exchange rate at the date of the transaction.

Statement of Cash Flows

The following are definitions of the terms used in the statement of cash flows:

  • cash and cash equivalents include cash on hand, cash in transit, bank accounts and deposits with a maturity of no more than three months from date of acquisition
  • investing activities are those activities relating to the acquisition and disposal of non-current assets
  • financing activities comprise capital injections by, or repayment of capital to, the Crown, and
  • operating activities include all transactions and other events that are not investing or financing activities.

Taxation

Departments and Offices of Parliament are exempt from income tax as public authorities. Accordingly no charge for income tax has been provided for.

Goods and Services Tax

These forecast financial statements are GST exclusive, except for receivables and payables in the statement of financial position, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense.

The net amount of GST owing to or from the Inland Revenue Department at balance date is included as part of receivables or payables (as appropriate) in the statement of financial position.

Commitments

Future expenses and liabilities to be incurred on contracts that have been entered into at balance date are disclosed as commitments to the extent that there are equally unperformed obligations.

Contingent Liabilities and Contingent Assets

Contingent liabilities are disclosed if the possibility that they will crystallise is not remote. Contingent assets are disclosed if it is probable that the benefits will be realised.

Changes in Accounting Policies

Any changes in accounting policies since the date of the last audited financial statements (30 June 2007) are described in the statement of entity-specific accounting policies. The effect of the transition to NZ IFRS is explained in the 2007/08 Statement of Intent or Annual Plan of each department or Office of Parliament.

Forecast Financial Statements Ministry of Health#

Statement of Forecast Financial Performance for the year ending 30 June 2009#

Statement of Forecast Financial Performance for the year ending 30 June 2009 - Health
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Income

         
Crown   168,417 199,077 199,077 213,162
Department(s)   2,752 3,037 3,113 1,897
Other revenue 1 13,959 13,717 16,217 12,396
Gains   66 - - -
Interest   - - - -

Total Income

  185,194 215,831 218,407 227,455

Expenses

         
Personnel   103,006 103,006 121,459 129,415
Operating 2 71,996 100,526 75,191 81,294
Depreciation and amortisation   8,269 10,902 9,244 14,200
Capital charge   1,289 1,397 1,420 2,546
Finance costs   - - - -
Other   436 - 1,800 -

Total Expenses

  184,996 215,831 209,114 227,455

Net Surplus / (Deficit)

8 198 - 9,293 -

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2009#

Statement of Forecast Changes in Taxpayers' Funds for the year ending 302009 - Health
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Balance at 1 July

         
General funds   17,482 18,623 18,623 33,951
Revaluation reserve   (435) - - -
Other reserves   - - - -

Taxpayers' Funds Opening Balance

  17,047 18,623 18,623 33,951

Changes in Taxpayers' Funds

         

Income and Expense for the Period

         
Net surplus / (deficit) for the year   198 - 9,293 -
Total gains / (losses) taken to equity   435 - - -

Total Income and Expense for the Period

  633 - 9,293 -

Other Changes

         
Repayment of surplus   (457) - (9,293) -
Capital contribution   1,400 15,328 15,328 24,578
Capital withdrawal   - - - -
Other   - - - -

Total Changes in Taxpayers' Funds

  1,576 15,328 15,328 24,578

Balance at 30 June

         
General funds   18,623 33,951 33,951 58,529
Revaluation reserve   - - - -
Other reserves   - - - -

Taxpayers' Funds Closing Balance

  18,623 33,951 33,951 58,529

 

Forecast Statement of Financial Position as at 30 June 2009#

 

Forecast Statement of Financial Position as at 30 June 2009 - Health
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Assets

         

Current Assets

         
Cash and cash equivalents   1,677 16,982 8,815 8,395
Debtors and other receivables 3 15,275 1,439 13,433 13,439
Prepayments   540 540 540 540
Inventories   - - - -
Other current assets   - - - -

Total Current Assets h3>

  17,492 18,961 22,788 22,374

Non-current Assets

         
Property, plant and equipment 4 23,944 32,605 25,445 28,550
Intangible assets 5 10,558 10,558 13,000 28,034
Other non-current assets   - - - -

Total Non- current Assets

  34,502 43,163 38,445 56,584

Total Assets

  51,994 62,124 61,233 78,958

Liabilities

         

Current Liabilities

         
Creditors and other payables   20,817 16,077 4,474 7,914
Repayment of surplus   457 - 9,293 -
Employee entitlements   5,783 - 5,783 5,783
Other current liabilities 6 4,580 4,581 6,000 5,000

Total Current Liabilities

  31,637 20,658 25,550 18,697

Non-current Liabilities

         
Provisions 7 - - - -
Employee entitlements   1,734 7,515 1,732 1,732
Other non-current liabilities   - - -- -

Total Non-current Liabilities

  1,734 7,515 1,732 1,732

Total Liabilities

th>
  33,371 28,173 27,282 20,429

Taxpayers' Funds

         
General funds   18,623 33,951 33,951 58,529
Revaluation reserve   - - - -
Other reserves   - - - -

Total Taxpayers' Funds

  18,623 33,951 33,951 58,529

Total Liabilities and Taxpayers' Funds

  51,994 62,124 61,233 78,958

 

Statement of Forecast Cash Flows for the year ending 30 June 2009#

 

Forestry Statement of Forecast Cash Flows for the year ending 30 June 2009 - Health
  Note 2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000

Cash Flows from Operating Activities

         

Receipts from:

         
Crown   172,333 212,913 204,913 221,162
Department(s)   2,752 3,037 3,113 1,897
Other   16,562 13,717 16,217 12,396
Interest   - - - -

Payments to:

         
Suppliers   (70,601) (110,526) (105,191) (111,294)
Employees   (109,567) (103,006) (121,459) (129,415)
Capital charge   (1,289) (1,397) (1,420) (2,546)
Goods and services tax (net)   (1,361) - - -
Other operating activities   - - - -

Net Cash from Operating Activities

8 8,829 14,738 (3,827) (7,800)

Cash Flow from Investing Activities

         

Receipts from:

         
Sale of property, plant and equipment   84 240 240 240
Sale of intangible assets   - - - -
Sale of other non-current assets   - - - -

Purchase of:

         
Property, plant and equipment   (12,941) (14,803) (4,405) (8,145)
Intangible assets   - - - -
Other non-current assets   - - - -

Net Cash from Investing Activities

  (12,857) (14,563) (4,165) (7,905)

Cash Flow from Financing Activities

         
Capital contribution   1,400 15,328 15,328 24,578
Other financing cash inflows   - - - -
Repayment of surplus   (3,126) (198) (198) (9,293)
Capital withdrawal   - - - -
Other financing cash outflows   - - - -

Net Cash from Financing Activities

  (1,726) 15,130 15,130 15,285

Net Increase / (Decrease) in Cash

  (5,754) 15,305 7,138 (420)
Cash at the beginning of the year   7,431 1,677 1,677 8,815
Cash at the end of the year   1,677 16,982 8,815 8,395

 

Statement of Significant Assumptions#

 

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

The main assumptions are as follows:

  • The department's activities will remain substantially the same as for the previous year.
  • Personnel costs are based on 1,432 full time equivalents, included are fixed term staff (186) who are employed on time limited projects such as the National Systems Development Programme.
  • Operating costs are based on historical experience. The general historical pattern is expected to continue.
  • Estimated year end information for 2007/08 is used as the opening position for the 2008/09 forecasts.

These assumptions are adopted as at 8 April 2008.

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 through new initiatives, or technical adjustments.

Department-Specific Accounting Policies#

The Ministry of Health has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as detailed below.

Reporting Entity

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

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

Statement of Entity-Specific Accounting Policies

Depreciation

Depreciation is charged on a straight-line basis at rates calculated to allocate the cost or valuation of an item of property, plant and equipment, less any estimated residual value, over its estimated useful life. Typically, the estimated useful lives of different classes of property, plant and equipment are as follows:

Depreciation - Health
  Useful life Depreciation rate
Buildings 40 years 2.5%
Motor vehicles 5 years 20%
Furniture and fittings 5-10 years 10-20%
Machinery 5 years 20%
Leasehold improvements 5-10 years 10-20%
IT equipment 3-5 years 20-33.3%
Scientific equipment 5-10 years 10-20%
Intangible assets

Intangible assets with finite lives are subsequently recorded at cost less any amortisation and impairment losses. Amortisation is charged to the Statement of Financial Performance on a straight-line basis over the useful life of the asset. Typically, the estimated useful lives of these assets are as follows: 

Intangible assets - Health
  Useful life Amortisation rate
Software - internally generated 3-5 years 20-33.3%
Software - other 3-5 years 20-33.3%
Cost allocation

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 any one specific output.

Direct costs are charged directly to outputs while indirect costs are charged to outputs based on the level of activity associated with relevant cost drivers.

Depreciation is charged to Business Units on the basis of asset utilisation with the balance being charged as indirect costs. Direct personnel costs are allocated directly to the output expenses with the balance being charged as indirect costs.

Notes to the Financial Statements#

Note 1 - Other Revenue
Note 1 - Other Revenue - Health
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Medicines registration 7,048 0 6,872 6,872
Service fees 4,719 2,850 3,488 3,553
Annual licence and registration fees 1,766 9,920 5,139 1,800
Gain on sale of fixed assets 66 0 47 0
Other 426 947 671 171

Total

14,025 13,717 16,217 12,396

 

Note 2 - Operating#

 

Note 2 - Operating - Health
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Operating expenses include:        
Consultants' fees 7,692 10,279 7,692 7,692
Overseas travel 1,923 1,496 1,576 1,576
Domestic travel 7,050 8,298 7,165 7,300
Other 55,331 80,453 58,758 64,726

Total

71,996 100,526 75,191 81,294

 

Note 3 - Debtors and Other Receivables#

 

Note 3 - Debtors and Other Receivables - Health
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Debtor Crown 13,836 0 11,494 4,000
Debtor other 1,439 1,439 1,939 9,439

Total

15,275 1,439 13,433 13,439

 

Note 4 - Property, Plant and Equipment#

 

Note 4 - Property, Plant and Equipment - Health
  Land
$000
Buildings
$000
Leasehold improvements
$000
Furniture/office equipment
$000
Other
$000
Total
$000

Cost or revaluation

           
Balance as at 1 July 2008 5,800 0 7,414 49,859 3,958 67,031
Additions by purchase     50 5,870 1,985 7,905
Additions internally developed            
Revaluation increase            
Transfers between classes            
Disposals            

Balance as at 30 June 2009

5,800   7,464 55,729 5,943 74,936

Accumulated depreciation and impairment losses

           
Balance as at 1 July 2008 0   3,639 34,462 3,485 41,586
Depreciation expense     701 3,699 400 4,800
Eliminate on disposal            
Eliminate on revaluation            
Transfers between classes            
Impairment losses            

Balance as at 30 June 2009

    4,340 38,161 3,885 46,386

Carrying amount as at 30 June 2009

5,800   3,124 17,568 2,058 28,550

 

Note 5 - Intangible Assets#

 

Note 5 - Intangible Assets - Health
  Acquired software
$000
Internally
generated software
$000
Other
$000
Total
$000

Cost

       
Balance as at 1 July 2008 34,661     34,661
Additions by purchase 24,434     24,434
Additions internally developed        
Disposals        

Balance as at 30 June 2009

59,095     59,095

Accumulated amortisation and impairment losses

       
Balance as at 1 July 2008 21,661     21,661
Amortisation expense 9,400     9,400
Disposals        
Impairment losses        

Balance as at 30 June 2009

31,061     31,061

Carrying amount as at 30 June 2009

28,034     28,034

 

Note 6 - Other Current Liabilities#

 

Note 6 - Other Current Liabilities - Health
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Income received in advance 4,580 4,581 6,000 5,000

Total

4,580 4,581 6,000 5,000

 

Note 7 - Provisions#

 

Note 7 - Provisions - Health
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Provision for repayment of surplus to the Crown 198 0 9,293 0

Total

198 0 9,293 0

 

Note 8 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities#

 

Note 8 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities - Health
  2006/07
Actual
$000
2007/08
Budgeted
$000
2007/08
Estimated
Actual
$000
2008/09
Budgeted
$000
Net surplus / (deficit ) 198 0 9,293 0
Add / (less) non cash items        
 Depreciation and amortisation expense 8,269 10,902 9,244 14,200
Net gains on derivative financial instruments 435 0 1,800 0
Other (NZ IFRS adj. to opening equity) -50 0 0 0
 Total non-cash items 8,654 10,902 11,044 14,200
Add / (less) items classified as investing or financing activities        
(Gains)/ losses on disposal property, plant and equipment -66 0 0 0
Total items classified as investing or financing activities 66 0 0 0
Add / (less) items movements in working capital items        
(Inc)/ Dec in debtors and receivables 3,595 13,836 5,836 8,000
(Inc)/ Dec in prepayments -86 0 0 0
Inc/ (Dec) in creditors and other payables -6,217 -9,550 -29,550 -29,550
Inc/ (Dec) in current provisions 450 -450 -450 -450
Inc/ (Dec) in employee entitlements -663 0 0 0
Inc/ (Dec) other 2,964 0 0 0
Net movements in working capital items 43 3,836 -24,164 -22,000
Net cash from operating activities 8,829 14,738 -3,827 -7,800