Justice Sector - Information Supporting the Estimates 2010/11 - Budget 2010

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

 

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 Attorney-General
• Vote Corrections
• Vote Courts
• Vote Justice
• Vote Parliamentary Counsel
• Vote Police
• Vote Serious Fraud

Statements of Forecast Service Performance of Departments

Forecast Financial Statements of Departments

• Statement of Common Accounting Policies
• Department of Corrections
• Crown Law Office
• Ministry of Justice
• Parliamentary Counsel Office
• New Zealand Police
• Serious Fraud Office

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

• Department of Corrections
• Crown Law Office
• Ministry of Justice
• Parliamentary Counsel Office
• New Zealand Police
• Serious Fraud Office

Purpose of Information Supporting the Estimates

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

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

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

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

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

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

 

Votes and Departments in Each Sector

Purpose and Nature of Appropriations

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

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

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

Limits Created by Appropriations

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

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

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

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

Responsibility for Appropriations

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

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

 

Types of Appropriation

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

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

Types of Output Expense Appropriations

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

Appropriation Period

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

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

Guide to Reading Information Supporting theEstimates

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

1 Sector Overview Information

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

2 Performance Information Relating to Appropriations in Each Vote

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

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

Part 1 - Summary of the Vote

The Summary of the Vote comprises:

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

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

Part 2 - Details and Expected Performance for Output Expenses

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

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

Part 3 - Details for Benefits and Other Unrequited Expenses

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

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

Part 4 - Details for Borrowing Expenses

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

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

Part 5 - Details and Expected Results for Other Expenses

Part 5 provides detail about appropriations for:

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

Part 6 - Details and Expectations of Capital Expenditure

This Part provides further details about appropriations for capital expenditure.

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

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

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

3 Statement of Forecast Service Performance of Departments

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

4 Forecast Financial Statements of Departments

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

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

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

5 Statements of Intent of Departments

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

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

Terms and Definitions

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

Useful Links

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

Sector Overview Statement

Overview of the Criminal Justice Sector

Justice sector Ministers and agencies are committed to achieving the outcome of a safe and just society. The sector's focus in coming years will be on continuing to deliver on justice priorities - including the need to improve public safety, reduce offending and re-offending, and enhance victims' rights and role in the criminal justice process - as well as improving the efficiency and effectiveness of the justice system.

The criminal justice sector is an interconnected system. As a result of their actions, offenders enter the system through Police apprehensions, some flow through the courts and corrections systems, and the majority of those imprisoned or on community sentences and orders go on to reoffend and recycle through the system.

Figure 1 - Criminal Justice System

Crime and justice issues are, and will remain, a key area of public concern. Although overall recorded crime decreased over the past decade, violent offending increased, and it has been a government priority to implement reforms, including changes to bail, parole and sentencing laws, to address the increase in violent offending and improve public safety. The number of offenders sentenced in the criminal courts has grown significantly over the past decade. Since 2002 the number of offenders serving sentences and orders in the community increased by 75%, and the New Zealand prison population increased 34% (and is now significantly higher than comparable jurisdictions such as Australia and the United Kingdom). The growth trajectory in offender volumes is unsustainable, particularly in light of the fiscal environment and constraints on public sector spending.

The criminal justice system has been under pressure from the growth in offender volumes, and there has been a significantly increased investment in the justice sector, including capital investment in expanding capacity in prisons and court-houses, to deal with this. Sector agencies - including the New Zealand Police, Ministry of Justice, Department of Corrections, Crown Law and Legal Services Agency - have also absorbed cost pressures over the past decade, and the pressures are expected to continue. The criminal justice forecast indicates that, on current policy and legislative settings, the number of offenders in the justice system will continue to grow in the short to medium-term. Further cost pressures are anticipated, particularly in relation to forecast future demand for police services, legal aid, prosecution services, the courts system, prison capacity and community probation services. Sector Ministers and agencies recognise the need to address the growth pressures at the same time as delivering on justice priorities.

The Government has a programme underway to address the drivers of crime, in order to reduce crime and victimisation and reduce the prison population over the longer term. There is a pressing need to stop people coming into the justice system, reduce the impacts of drug and alcohol abuse, and address Māori over-representation in the system. Achieving these objectives will require a sustained whole-of-government and community effort. The drivers of crime work programme will be a significant focus for the justice sector in coming years, and is an important means of managing cost pressures and improving value for money in the justice system.

Sector Ministers have also approved a suite of performance improvement actions to slow the rate of future growth in the criminal justice system, and to improve the efficiency and effectiveness of the justice system. These changes support the Government's priority of lifting productivity and improving services in the public sector, and the drive for ‘better, smarter public services for less'.

The performance improvement actions include investment in technology solutions and improving frontline service delivery to help move the sector, over time, towards a more sustainable operating model. There will also be an increased focus on reducing offending and re-offending. Over time this approach will help to reduce crime, resulting in safer communities and fewer victims - contributing to improved public safety, as well as reducing pressure on the criminal justice system. Reforms are also proposed to enhance victims' rights in the criminal justice process and to improve agencies' responsiveness to the victims of crime.

Sector agencies will focus on continuing to make savings through internal efficiencies and organisational realignment, in order to invest in the performance improvements and absorb current and forecast cost pressures from within existing baselines. Over the next three to five years, the agencies - particularly Police, Justice, Courts, Corrections and Crown Law - will be working together to implement the performance improvement actions. These are:

• Initiatives supporting Policing Excellence - including a shift from reactive to preventative policing, a stronger focus on case management, and alternative resolutions to divert minor offending out of the criminal system into other more appropriate pathways
• Legislative and operational reforms - Criminal Procedure Simplification, Electronic Operating Model and Audio-Visual Links - to modernise and streamline the court system, including greater use of technology, to enable the courts to process more cases, more quickly, at a lower incremental cost to the justice sector
• Corrections' The Way Forward, which incorporates the Community Probation Service change programme, and a more targeted approach to offender rehabilitation and reintegration to reduce re-offending (the latter will also be assisted by the Whare Oranga Ake initiative, which is a Ministerial priority for kaupapa Māori reintegration), and
• Addressing the drivers of crime, through cross-government and community initiatives to tackle the underlying causes of crime and victimisation (by improving maternity and early parenting support, reducing the harm from alcohol, addressing conduct and behavioural problems in childhood, and managing low-level offenders), and to stem the flow of offenders into the justice system.

The scale of change to the criminal justice system, and agencies' operations, from these reforms is ambitious. Taken together, the reforms will change the way sector agencies do business and will help reduce ongoing pressures and growth in sector spending over the medium to long term.

At the same time, the sector will need to continue to deliver core services across policing, courts, community-based sentencing, prisons, probation and parole. This will require increased efficiency, effectiveness and innovation in the face of ongoing growth in criminal justice demand. Sector agencies are planning to manage much of their capital investment needs within existing baselines (including capital investment in the sector performance improvements). Sector agencies will be scaling back, deferring, and reprioritising capital investment in some areas in order to invest in the sector performance improvements and to address other cost pressures.

Corrections' planning for future capacity development will address the volumes for Community Probation Services and the need for additional prison capacity to meet rising demand, alongside innovations such as public-private partnerships for new capacity, double-bunking and contract management of existing prisons.

Over the next few years, the sector will focus on continuing to deliver on justice sector priorities and performance improvements, and delivering justice services to New Zealanders in a tightly constrained fiscal environment. Agencies will be managing major changes to the criminal justice system and organisational changes as they work to deliver on the priorities and performance improvements, along with greater productivity and value for money. Managing the changes within funding constraints whilst maintaining core service delivery will be a challenge for the sector.

Ministerial Statements of Responsibility

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

Chief Executive Statements of Responsibility

Ministry of Justice

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

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

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Department of Corrections

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

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

New Zealand Police

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

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

Chief Executive Statements of Responsibility (continued)

Serious Fraud Office

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

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

Crown Law Office

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

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

Parliamentary Counsel Office

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

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

Performance Information for Appropriations Vote Attorney-General

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Attorney-General (M5)

ADMINISTERING DEPARTMENT: Crown Law Office

MINISTER RESPONSIBLE FOR CROWN LAW OFFICE: Attorney-General

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Attorney-General is responsible for appropriations in the Vote for the 2010/11 financial year covering the following:

• a total of $3.329 million (5% of the Vote) for the conduct of appeals arising from criminal trials on indictment and from Crown appeals against sentence
• a total of $22.900 million (35% of the Vote) on providing legal advice and representation services to central government departments and agencies
• a total of $36.742 million (55% of the Vote) on providing a national Crown prosecution service that undertakes criminal trials on indictment and related appeals
• a total of $2.948 million (4% of the Vote) on providing legal and administrative services to the Attorney-General and Solicitor-General to assist them in the exercise of their statutory functions and responsibilities, and
• a total of $891,000 (1% of the Vote) on the purchase or development of assets by and for the use of the Crown Law, as authorised by section 24 (1) of the Public Finance Act 1989.

Crown Law expects to receive a total of $21.984 million comprising fees and disbursements, from central government departments and agencies for providing legal advice and representation services.

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

Part 1.2 - High-Level Objectives of the Vote

Government Priorities and Outcomes - Links to Appropriations

Objectives of the Vote

Our work focuses on three objectives:

• The Government is supported to fulfil its democratic duties under law and in the public interest.
• Leadership of high quality, effective government legal services is provided.
• The principal Law Officers perform their constitutional duties to the highest standard.

Part 1.3 - Trends in the Vote

Summary of Financial Activity

New Policy Initiatives

Analysis of Significant Trends

Total Vote: All Appropriations

Trends in comparative actual and estimated total expenses and capital expenditure are shown in Figure 1 below, including budgeted and estimated actual figures for the preceding year.

Vote trends in actual expenses and capital expenditure by appropriation type

Source: Crown Law Office

Part 2 - Details and Expected Performance for Output Expenses

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

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

Conduct of Criminal Appeals (M5)

Scope of Appropriation

Expenses and Revenue

Output Performance Measures and Standards

Current and Past Policy Initiatives

Legal Advice and Representation (M5)

Scope of Appropriation

Expenses and Revenue

Output Performance Measures and Standards

Note 1 - Impact of the electronic records and email management systems project and closing matter files.

Memorandum Account

Supervision and Conduct of Crown Prosecutions (M5)

Scope of Appropriation

Expenses and Revenue

Output Performance Measures and Standards

Note 2 - Impact of the new criminal justice sector process.

Current and Past Policy Initiatives

The Exercise of Principal Law Officer Functions (M5)

Scope of Appropriation

Expenses and Revenue

Output Performance Measures and Standards

Current and Past Policy Initiatives

Part 6 - Details and Expected Results for Capital Expenditure

Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Crown Law Office - Capital Expenditure PLA (M5)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

The higher intangible expenditure in 2009/10 is due to the rescheduling of the electronic records and email management systems project (Project Puutake).

Performance Information for Appropriations Vote Corrections

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Corrections (M18)

ADMINISTERING DEPARTMENT: Department of Corrections

MINISTER RESPONSIBLE FOR DEPARTMENT OF CORRECTIONS : Minister of Corrections

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

• $581.679 million (50.18% of the Vote) on the provision of custodial services for offenders sentenced to imprisonment
• $185.301 million (15.98% of the Vote) on the management and delivery of sentences and orders served in the community
• $172.704 million (14.90% of the Vote) on the provision of custodial services for remand prisoners (people waiting trial, and offenders convicted but not yet sentenced)
• $137.590 million (11.87% of the Vote) on the provision of prisoner education, prisoner employment, rehabilitative programmes, reintegrative services and psychological services all designed to address the underlying causes of criminal re-offending
• $63.538 million (5.48% of the Vote) on the provision of information about offenders to victims of crime, the Judiciary and the New Zealand Parole Board, and the provision of administrative, financial and secretariat services to the New Zealand Parole Board
• $12.900 million (1.14% of the Vote) on the provision of preparing for and managing contracts for the provision of custodial services by third parties
• $5.187 million (0.45% of the Vote) on the provision of ministerial services, the development of policies and the provision of policy advice.

The Department of Corrections does not expect to collect any Crown revenue in 2010/11.

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

Part 1.2 - High-Level Objectives of the Vote

Objectives of the Vote

The outputs within the output class Policy Advice and Ministerial Services contribute to all impacts and outcomes.

Vote Corrections will also directly support the following Minister's priorities:

• Competitive tendering for the management of prisons, to enable private management of two existing prisons.
• Ensuring adequate prison capacity by implementing double bunking and development of a Public-Private Partnerships.
• Assuring public safety through effective management of community-based offenders by the progressive introduction of the Community Probation Services Change Programme.
• Rehabilitation to reduce re-offending through implementation of the new Rehabilitation and Reintegration Services and the Associate Minister's Whare Oranga Ake initiative.
• Addressing the issues related to the availability of alcohol and drug treatment services for those on community sentences and released from prison.

Vote Corrections contributes to these priorities through its End and Intermediate Outcomes, and Appropriations.

Part 1.3 - Trends in the Vote

New Policy Initiatives

Analysis of Significant Trends

Departmental Output Trends

As outlined in the graph below, annual departmental output expenses have increased by $670.980 million (137.5%) from $487.919 million in 2003/04 to $1,158.899 million in 2010/11.

The chart below shows the trend in total departmental output expenses over time.

Departmental Output Trends

Source: Department of Corrections

Significant movements over this period are as follows:

• The increase in 2010/11 mainly relates to funding for the Wiri Prison Public-Private Partnerships, the establishment of Whare Oranga Ake, expense transfers from 2009/10 of $10 million and funding for prison project management and integration activities. These increases were offset by a reduction in the capital charge associated with the $83.300 million capital returned for Mt Eden Phase Two (Stage Two) development in 2009/10.
• The increase in 2009/10 mainly relates to funding for the Capacity Management programme due to an increase in offender volumes for the Community Probation and Psychological Services and Prison Services.
• The increase in 2008/09 mainly relates to funding for the Capacity Management Programme (Community Probation and Psychological Services offender volumes).
• The increase in 2007/08 mainly relates to funding for increasing capacity and Effective Intervention programmes.
• The increase in 2006/07 mainly relates to funding for the Auckland Region Women's Corrections Facility, Spring Hill Corrections Facility, Otago Corrections Facility and additional capital charge funding.
• The increase in 2005/06 mainly relates to funding for the OPR, bargaining round funding and additional funds to meet higher than predicted prisoner demand. Additional funding was also received for on-going operating costs for the Northland Region Corrections Facility and the Auckland Region Women's Corrections Facility.

Departmental Capital Expenditure Trends

The chart below shows the trend in capital expenditure over time.

Departmental Capital Expenditure Trends

Source: Department of Corrections

Significant movements over this period are as follows:

• The increase in capital expenditure in 2010/11 mainly relates to the establishment of Whare Oranga Ake, transfer of $32.079 million capital for Community Probation and Psychological Services from 2009/10 to 2010/11 and Mt Eden Phase Two (Stage Two) development. Capital expenditure for 2010/11 has reduced compared with 2009/10 due to the completion of Mt Eden Prison Replacement project, the decommissioning of the obsolete Mt Eden and construction of replacement beds on the existing site, in 2009/10.
• The increase in capital expenditure in 2009/10 mainly relates to the redevelopment of Mt Eden Prison, development of business cases for new prisons, and implementing double-bunking at five prisons.
• The increase in capital expenditure in 2008/09 relates to the Mt Eden Prison replacement project.

Performance Improvement Actions

The Department is embarking on a programme of work to improve its performance and services. The Way Forward - performance improvement programme is designed to implement the recommendations contained in the Chief Executive's Decision Document of September 2009 as a result of the Value for Money Review. Additionally, the Department has determined that all current service improvement and change management initiatives be collectively incorporated under the umbrella of The Way Forward - performance improvement programme.

The three-year programme of work will support the Department to achieve the strategic outcomes of Ensuring Sentence Compliance, Reducing Re-Offending, Strengthening Partnerships and Enhancing Capability with a key focus to succeed for Maori offenders. The Way Forward - performance improvement programme sets the direction for the delivery of cost efficient and effective service delivery and support the Government's priority to make government expenditure more productive and effective.

Key performance improvement actions (PIAs) for 2010/11 that have been approved and agreed with the Minister are:

Part 1.4 - Reconciliation of Changes in Appropriation Structure

Changes in Appropriation Categories

The Department has further reviewed its appropriation structure during 2009/10 to reflect its long-term objective to provide a more defined outline of core services, with logical and coherent groupings of outputs (services) and output performance measures and standards.

The appropriation structure changes include the following:

• The output class Information Services is being renamed to Information and Administrative Services to the Judiciary and the New Zealand Parole Board. The scope of the appropriation is expanded to include the disestablished output class Services to New Zealand Parole Board. The funding and all associated outputs will be transferred, including, administrative, financial and secretarial services to New Zealand Parole Board. The outputs within this Output Class for 2010/11 and outyears are Information Services to the Judiciary, Information Services to the New Zealand Parole Board, Administrative Services to the New Zealand Parole Board and Services to Victims.
• The output class Services to New Zealand Parole Board is being disestablished. The services to the New Zealand Parole Board are more logically aligned with the renamed output class Information and Administrative Services to the Judiciary and the New Zealand Parole Board.
• The output class Prisoner Transportation and Courtroom Supervision is being disestablished. The Prisoner Transportation and Courtroom Supervision function is aligned with the Prison-based Custodial Services Multi-Class Output Appropriation (MCOA) as shared outputs between both remand and sentenced prisoners. The provision of transportation for prisoners to and from court and the supervision of prisoners while at court are custodial functions. The outputs within the MCOA (Custody of Remand Prisoners and Custody of Sentenced Prisoners) are: Health, Crime Prevention, Prisoner Transportation, and External Supervision.
• The output class Rehabilitative Programmes and Reintegrative Services is being renamed as Rehabilitation and Reintegrative Services. The scope of this appropriation will be increased to include the disestablished output class Prisoner Employment. The outputs within this output class are: Prisoner Education, Prisoner Employment, Rehabilitation Programmes, Reintegrative Services and Psychological Services.
• The output class for Prisoner Employment is being disestablished. The prisoner employment function is aligned with the Rehabilitation and Reintegrative Services output class as an output to help address the underlying causes of criminal re-offending.
• A new output class Management of Third Party Custodial Services is being established. This appropriation is set up specifically for the implementation cost of the Public-Private Partnerships (PPP) project and the contract management of two existing prisons for the provision of custodial services. This will avoid any potential overlaps with other appropriations which currently include contracts with third parties. In addition, the funding received under implementation of PPP does not contribute to outputs delivered under the existing output classes.

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

Part 2 - Details and Expected Performance for Output Expenses

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Information and Administrative Services to the Judiciary and New Zealand Parole Board (M18)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The output class Information Services has been renamed to Information and Administrative Services to the Judiciary and the New Zealand Parole Board. The scope of the appropriation has been expanded to include the disestablished output class Services to New Zealand Parole Board. All associated outputs were transferred, including, administrative, financial and secretarial services to New Zealand Parole Board.

The outputs within this Output Class are:

• Information Services to the Judiciary.
• Information Services to the New Zealand Parole Board.
• Information and Administrative Services to Victims.
• Administrative Services to New Zealand Parole Board.

The change in appropriation is largely due to:

• additional funding for restoring Community Probation and Psychological Services capacity to manage increased demand, enhancing the quality of Parole and Home Detention management, and mitigating waiting times in Auckland's Criminal Courts
• transfer of efficiency savings from 2009/10 to 2010/11
• transfer of funding to reflect the Baseline Alignment Proposal where the Department is to absorb unfunded cost pressures with internal efficiency savings realised without an increase in baseline funding
• reversal of a fiscally neutral adjustment to realign internal resources to ensure the delivery of the Department's performance standards in 2009/10
• transfer of funding within the disestablished Services to New Zealand Parole Board appropriation to Information Services appropriation from budget 2009/10. For details of changes to the appropriation refer to Part 1.4 Reconciliation of Changes in Appropriation Structure.

Output Performance Measures and Standards

Note 1 - Activity information relates to output volume measures that are demand driven and therefore outside the Department's control.

Conditions on Use of Appropriation

Current and Past Policy Initiatives

Management of Third Party Custodial Services (M18)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation is set up specifically for the implementation cost of the Public-Private Partnerships (PPP) project and the contract management of two existing prisons for the provision of custodial services. This will avoid any potential overlaps with other appropriations which currently include contracts with third parties.

In addition, the funding received under implementation of PPP does not contribute to outputs delivered under the existing output classes.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Policy Advice and Ministerial Services (M18)

Scope of Appropriation

Expenses and Revenue

Output Performance Measures and Standards

Conditions on Use of Appropriation

Prison-based Custodial Services MCOA (M18)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

These output classes use the same resources in providing custodial services.

Expenses and Revenue

Reasons for Change in Appropriation

Under the new 2010/11 Output Class Structure, the scope of the Multi-Class Output Appropriation has been further expanded to incorporate the further outputs relating to the disestablished output class Prisoner Transportation and Courtroom Supervision.

The appropriation for Prisoner Transportation and Courtroom Supervision was transferred to the Prison-based Custodial Services multi-class output appropriation (MCOA) - Custody of Remand Prisoners, as the provision of transportation for prisoners to and from court and the supervision of prisoners while outside of a prison are custodial functions.

Outputs within the MCOA (Custody of Remand Prisoners and Custody of Sentenced Prisoners) are:

• Health.
• Crime Prevention.
• Prisoner Transportation.
• External Supervision.

The change in appropriation for Custody of Remand Prisoners is largely due to:

• additional funding for new prisons to address higher demand and provision of double-bunking at five prisons
• transfer of funding from the disestablished Prisoner Transportation and Courtroom Supervision to Custody of Remand Prisoners output class. For details of changes to the appropriation refer to Part 1.4 Reconciliation of Changes in Appropriation Structure
• funding returned to the Crown in 2009/10 relating to the negotiation with Unions on the extension of double bunking
• transfer of efficiency savings from 2009/10 to 2010/11
• capital charge returned associated with the capital returned in 2009/10 for the Mt Eden Phase Two (Stage Two) development
• transfer of funding to reflect the Baseline Alignment Proposal where the Department is to absorb unfunded cost pressures with internal efficiency savings realised without an increase in baseline funding.

The change in appropriation for Custody of Sentenced Prisoners is largely due to:

• additional funding for Mt Eden Replacement project
• additional funding for new prisons to address higher demand, additional drug treatment units and provision of double-bunking at five prisons
• transfer of efficiency savings from 2009/10 to 2010/11
• a reduction in funding received as part of decision made under effective intervention for home detention, preventing re-offending and corrections' capacity
• capital charge returned associated with the capital returned in 2009/10 for the Mt Eden Phase Two (Stage Two) development
• transfer of funding to reflect the Baseline Alignment Proposal where the Department is to absorb unfunded cost pressures with internal efficiency savings realised without an increase in baseline funding
• funding returned to the Crown in 2009/10 relating to negotiation with Unions on the extension of double bunking
• a reversal of the 2009/10 transfer of appropriation due to an increase in proportion of remand prisoners to total prisoners.

Output Performance Measures and Standards

Note 2 - Health, Crime Prevention, Prisoner Transportation and External Supervision are shared outputs for both Custody of Remand Prisoners and Custody of Sentenced Prisoners.

Conditions on Use of Appropriation

Current and Past Policy Initiatives

Rehabilitation and Reintegrative Services (M18)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The output class Rehabilitative Programmes and Reintegrative Services has been renamed to Rehabilitation and Reintegrative Services. The name change better reflects the outputs within the output class.

The scope of this appropriation has been increased to include the disestablished output class Prisoner Employment. The prisoner employment function is aligned with the rehabilitation and reintegrative services output class as an output to help address the underlying causes of criminal re-offending.

The outputs within this output class are:

• Prisoner Education.
• Prisoner Employment.
• Rehabilitation Programmes.
• Reintegrative Services.
• Psychological Services.

The change in appropriation is largely due to:

• transfer of funding from the disestablished Prisoner Employment output class to Rehabilitation and Reintegrative Services output class. For details of changes to the appropriation refer to Part 1.4 Reconciliation of Changes in Appropriation Structure
• additional funding for new prisons to address the higher demand
• new funding for Whare Oranga Ake reintegration services to provide kaupapa Maori rehabilitation and reintegration services to improve the ability of prisoners to successfully participate in the community on release and reduce the rate of re-offending
• transfer of funding to reflect the Baseline Alignment Proposal where the Department is to absorb unfunded cost pressures with internal efficiency savings realised without an increase in baseline funding
• transfer of efficiency savings from 2009/10 to 2010/11.

Output Performance Measures and Standards

Conditions on Use of Appropriation

Current and Past Policy Initiatives

Sentences and Orders Served in the Community (M18)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The change in appropriation is largely due to:

• additional funding for restoring Community Probation and Psychological Services capacity to manage increased demand, enhancing the quality of Parole and Home Detention management, and mitigating waiting times in Auckland's Criminal Courts
• a reversal of funding transfer due to the realignment of internal resources to ensure the delivery of the Department's performance standards in 2009/10
• transfer of funding within appropriations to reflect the Baseline Alignment Proposal where the Department is to absorb unfunded cost pressures with internal efficiency savings realised without an increase in baseline funding
• transfer of efficiency savings from 2009/10 to 2010/11.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Part 6 - Details and Expected Results for Capital Expenditure

Part 6.1 - Departmental Capital Expenditure

Department of Corrections - Capital Expenditure PLA (M18)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

The change in capital expenditure is mainly due to Community Probation and Psychological Services projects being carried forward into 2010/11. The transfer of this capital is to align the funding with timing of these projects under The Community Probation Services in New Zealand: Change Programme 2009 - 2012.

Performance Information for Appropriations Vote Courts

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Courts (M19)

ADMINISTERING DEPARTMENT: Ministry of Justice

MINISTER RESPONSIBLE FOR MINISTRY OF JUSTICE: Minister of Justice

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

Overview

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

• a total of $425.608 million (57% of the Vote) on purchasing services (mostly support for managing cases, claims and applications through the courts and tribunals, and the collection and enforcement of fines and civil debts) from the Ministry of Justice

• a total of $212.106 million (29% of the Vote) on purchasing services from non-departmental providers. The major part of the appropriation covers costs incurred under various Acts

• a total of $105.382 million (14% of the Vote) on non-departmental expenditure to cover judges' salaries and allowances.

Fines and other penalties imposed through the courts are expected to generate $284.406 million of Crown revenue in 2010/11.

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

Part 1.2 - High-Level Objectives of the Vote

Government Priorities and Outcomes - Links to Appropriations

Part 1.3 - Trends in the Vote

Summary of Financial Activity

New Policy Initiatives

Analysis of Significant Trends

Analysis of Significant Trends

Source: Ministry of Justice

Departmental Output Expense Trends

The increase in 2010/11 and out years is mainly due to new funding approved in Budget 2010. The 2010/11 year also includes a number of expense transfers from 2009/10 to 2010/11 resulting from planned savings in 2009/10 to cover cost pressures in 2010/11 totalling approximately $3.650 million.

Other Expense Trends

The increase in 2010/11 and outyears is mainly due to new funding approved in Budget 2010 to meet increases in the cost of professional services in the Family Court and the Youth Court.

Part 2 - Details and Expected Performance for Output Expenses

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Collection and Enforcement of Fines and Civil Debts Services (M19)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The increase in funding for 2010/11 mainly results from new funding for the Victims' Services initiative and to support implementation of the Vehicle Confiscation and Seizure Bill; enacted in the Sentencing (Vehicle Confiscation) Amendment Act 2009, the Summary Proceedings (Vehicle Seizure) Amendment Act 2009 and the Privacy Amendment Act 2009.

Output Performance Measures and Standards

Current and Past Policy Initiatives

District Court Services (M19)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

These changes can mainly be attributed to:

• reprioritisation across appropriations to fund cost pressures
• funding for the Domestic Violence (Enhancing Safety) Bill; enacted in the Domestic Violence Amendment Act 2009, the Sentencing Amendment Act (No 2) 2009 and the Bail Amendment Act 2009
• funding for the Audio Visual Links (AVL) in Courts, and
• funding for the Criminal Investigations (Bodily Samples) Amendment Act 2009.

Output Performance Measures and Standards

Note 1 - Judicial satisfaction is measured by an annual survey of the District Courts judiciary. The performance measure standard is the percentage of judges who rate case management, file preparation, file presentation and courtroom and hearing support provided as "meets expectations" or better. The scale for responses is: far exceeds expectations; above expectations; meets expectations; below expectations; well below expectations.

Note 2 - Juror satisfaction is measured by an annual survey of jurors. The performance measure standard is the percentage of survey responses where jurors rate their overall satisfaction level with specific services as "satisfied" or better. The scale for responses is: very satisfied; satisfied; neither satisfied nor dissatisfied; dissatisfied; very dissatisfied.

Current and Past Policy Initiatives

Higher Court Services (M19)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The increase in 2010/11 is mainly due to depreciation for the Supreme Court.

Output Performance Measures and Standards

Note 1 - Judicial satisfaction is measured by an annual survey of the High Court judiciary. The performance measure standard is the percentage of judges who rate case management, file preparation, file presentation and courtroom and hearing support provided as "meets expectations" or better. The scale for responses is: far exceeds expectations; above expectations; meets expectations; below expectations; well below expectations. Formal and informal feedback processes are used to manage the quality of support that the Ministry provides in all jurisdictions including the Supreme Court and Court of Appeal.

Current and Past Policy Initiatives

Specialist Courts, Tribunals and Other Authorities Services (M19)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The decrease in 2010/11 is mainly due to a reduction in funding in 2010/11 relating to the 2007 new initiative "Transfer of the Weathertight Homes Resolution Service" and reprioritisation of funding to meet Government priorities.

Output Performance Measures and Standards

Note 1 - Revised wording from cases determined to cases disposed.

Note 2 - Judicial satisfaction is measured by an annual survey of Environment Court, Employment Court, and Maori Land Court judiciary and coroners. The performance measure is the percentage of survey responses where the overall satisfaction level with case management, file preparation, file presentation and courtroom hearing or mediation (where applicable) support is "satisfied" or better. The scale for responses is: very satisfied; satisfied; neither satisfied nor dissatisfied; dissatisfied; very dissatisfied.

Memorandum Account

Note 1 - Filing fees for Secondhand Dealers and Pawnbrokers and Motor Vehicle Dealers are set and reviewed on a five year cycle.

Current and Past Policy Initiatives

Waitangi Tribunal Services (M19)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The decrease in 2010/11 is mainly the result of an in-principle transfer of $450,000 from 2008/09 to 2009/10 due to delays in progressing inquiries and development of a claims management system.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Part 5 - Details and Expected Results for Other Expenses

Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Abortion Supervisory Committee - Certifying Consultants Fees (M19)

Scope of Appropriation

Expenses

Current and Past Policy Initiatives

Assistance to Victims of Crime (M19)

Scope of Appropriation

Expenses

Children Young Persons and Their Families Professional Services (M19)

Scope of Appropriation

Expenses

Coroner Related Fees and Expenses (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The decrease in appropriation is due to a reclassification of expenses to the Coroners Salaries and Allowances appropriation.

Current and Past Policy Initiatives

Coroner-Directed Post-Mortems (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

An increase in appropriation of $750,000 in 2009/10 reducing to $700,000 in outyears to address forecast volume driven cost pressures.

Current and Past Policy Initiatives

Coroners Salaries and Allowances PLA (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase reflects the forecast split of costs between this appropriation and coroner related fees and expenses.

Costs in Criminal Cases (M19)

Scope of Appropriation

Expenses

Domestic Violence Professional Services (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 is due to the forecast increased demand for professional services from implementing the changes incorporated in the Domestic Violence Amendment Act 2009, the Sentencing Amendment Act (No 2) 2009 and the Bail Amendment Act 2009.

Current and Past Policy Initiatives

Family Court Professional Services (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 is due to the impact of additional funding for Family Court Professional Services to meet increased demand.

Current and Past Policy Initiatives

Impairment of Fines Receivable (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 is the result of changes to reflect the latest forecast trends.

Judges' Salaries and Allowances PLA (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 is mainly due to the impact of:

• the Remuneration Authority Judicial Salaries and Allowances Determination in December 2009
• the Criminal Investigations (Bodily Samples) Amendment Act 2009, and
• the Domestic Violence (Enhancing Safety) Bill; enacted in the Domestic Violence Amendment Act 2009, the Sentencing Amendment Act (No 2) 2009 and the Bail Amendment Act 2009.

Current and Past Policy Initiatives

Judicial Review Costs (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The decrease in appropriation reflects anticipated demand.

Justices of the Peace Association (M19)

Scope of Appropriation

Expenses

Medical and Other Professional Services (M19)

Scope of Appropriation

Expenses

Current and Past Policy Initiatives

MVDT Adjudicator Remuneration and Assessors Costs (M19)

Scope of Appropriation

Expenses

Current and Past Policy Initiatives

Personal Property Protection Rights Costs (M19)

Scope of Appropriation

Expenses

Representations for Blood Sampling (M19)

Scope of Appropriation

Expenses

Tribunal Members Fees and Expenses (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 is due to the impact of the Real Estate Agents Act 2008: Funding for Implementation; with 2010/11 incurring a full year of Tribunal members' fees and expenses compared to a part year in 2009/10.

Current and Past Policy Initiatives

Visiting Justices to Prisons (M19)

Scope of Appropriation

Expenses

Witness Fees and Expenses (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 is due to the impacts of the Criminal Investigations (Bodily Samples) Amendment Act and Domestic Violence (Enhancing Safety) Bill; which was enacted as the Domestic Violence Amendment Act 2009, the Sentencing Amendment Act (No 2) 2009 and the Bail Amendment Act 2009.

Current and Past Policy Initiatives

Youth Court Professional Fees (M19)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 is due to the impact of additional funding for Youth Court Professional Fees to meet increased demand for services.

Current and Past Policy Initiatives

Reporting Mechanisms

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

Performance Information for Appropriations Vote Justice

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Justice (M42)

ADMINISTERING DEPARTMENT: Ministry of Justice

MINISTER RESPONSIBLE FOR MINISTRY OF JUSTICE: Minister of Justice

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

Services purchased directly from the Ministry of Justice:

• $1.862 million (less than 1% of the Vote) on purchasing crime prevention and community safety initiatives
• $14.190 million (4% of the Vote) on purchasing the management of the parliamentary electoral system
• $27.439 million (7% of the Vote) on purchasing policy advice
• $10.522 million (3% of the Vote) on purchasing sector leadership and support.

Services purchased through Non-departmental Output Expenses:

• $23.207 million (6% of the Vote) funding the costs of administering the Legal Services Agency
• $4.723 million (1% of the Vote) on purchasing policy advice from the Law Commission
• $8.152 million (2% of the Vote) on purchasing community crime prevention services and programmes delivered by community and local government agency providers
• $16.523 million (4% of the Vote) on purchasing equity promotion and protection services from the Human Rights Commission, the Independent Police Conduct Authority, the Privacy Commissioner and the Inspector-General of Intelligence and Security
• $131.824 million (34% of the Vote) on funding the Legal Services Agency to make payments of legal aid
• $19.301 million (5% of the Vote) on purchasing services relating to producing and maintaining electoral rolls
• $734,000 (less than 1% of the Vote) on purchasing services relating to the provision of electoral services and election broadcasting
• $4.500 million (1% of the Vote) on purchasing protective fiduciary services
• $9.890 million (3% of the Vote) on provision of legal services by the Public Defence Service
• $6.367 million (2% of the Vote) on purchasing support for victims
• $15.621 million (4% of the Vote) for other expenses to be incurred by the Crown and capital expenditure for Crown entities
• $94.620 million (24% of the Vote) on the purchase or development of assets by and for the use of the Ministry of Justice as authorised by section 24(1) of the Public Finance Act 1989.

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

Part 1.2 - High-Level Objectives of the Vote

Government Priorities and Outcomes - Links to Appropriations

Part 1.3 - Trends in the Vote

Summary of Financial Activity

New Policy Initiatives

Analysis of Significant Trends

Analysis of Significant Trends

Source: Ministry of Justice

Departmental Output Trends

The increases in appropriation in 2011/12 are mainly due to the cyclical nature of the funding for general elections. The increase in appropriations in 2010/11 is the result of new funding for the implementation of responses to the review of Legal Aid.

Non-Departmental Output Trends

The increase in the 2009/10 and 2010/11years is mainly the result of new funding for Legal Aid which is for the 2009/10 and 2010/11 years only. The 2008/09 year includes additional expenditure for the 2008 general election.

Departmental Capital Expenditure Trends

• Expenditure in 2009/10 included a number of new initiatives.
• Expenditure in 2010/11 and outyears is primarily funded from baseline accumulated depreciation levels.

Part 2 - Details and Expected Performance for Output Expenses

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Crime Prevention and Community Safety (M42)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The increase in 2010/11 is due to several one-off reductions in 2009/10 including:

• transfer of $175,000 from Crime Prevention and Community Safety to Intensive Intervention for Serious Recidivist Young Offenders for operating costs relating to the Te Hurihanga Youth Residential Programme, and
• reduction of $320,000 as a result of reprioritising funding across appropriations.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Managing the Parliamentary Electoral Process (M42)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

Reflects the cyclical nature of funding for general elections; specific provision has been made for additional activity and public education to support the proposed electoral finance reforms and the conduct of a referendum with the 2011 general election.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Policy Advice (M42)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

Priority has been given to funding activity associated with considering constitutional issues in accordance with the confidence and supply agreement between the National Party and the Maori Party.

Output Performance Measures and Standards

Conditions on Use of Appropriation

Current and Past Policy Initiatives

Sector Leadership and Support (M42)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The increase in 2010/11 is mainly due to implementation of the recommendations of the Legal Aid Review.

Output Performance Measures and Standards

Conditions on Use of Appropriation

Current and Past Policy Initiatives

Part 2.2 - Non-Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Administration of Legal Services Agency (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The decrease in 2010/11 is mainly due to the emergency funding of $7.200 million approved for Community Law Centres for the 2009/10 year only. Third-party funding generated through the Lawyers and Conveyancers Special Fund is the main source of funding for Community Law Centres. New funding has been approved for 2010/11 and 2011/12 so that Community Law Centres will continue to receive a consistent level of total funding despite variation in the level provided by the Lawyers and Conveyancers Special Fund.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Advice from the Law Commission (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

Appropriation decrease is based on anticipated activity levels.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Crime Prevention and Community Safety Programmes (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 is the result of a one-off reduction in 2009/10 funding as a result of a transfer to Intensive Intervention for Serious Recidivist Young Offenders to fund operating costs of the Te Hurihanga Youth Residential Programme.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Equity Promotion and Protection Services (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The decrease in 2010/11 mainly relates to the one off funding in 2009/10 for the Inquiry into Police Conduct in Relation to Child Abuse Cases.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Equity Promotion and Protection Services - Inspector General PLA (M42)

Scope of Appropriation

Expenses

Intensive Intervention for Serious Recidivist Young Offenders (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

Funding for the operating costs relating to the Te Hurihanga Youth Residential Programme ceases in the 2009/10 year. The facility will be transferred to the Ministry of Social Development on 1 July 2010 and will continue to operate programmes for young offenders.

Current and Past Policy Initiatives

Legal Aid (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

Legal Aid funding has been approved at a level consistent with the legal aid forecast until March 2011. Funding will be considered in Budget 2011 following implementation of the recommendations of the Review of Legal Aid conducted in 2009, and 2010/11 demand has been monitored.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Producing and Maintaining Electoral Rolls (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 reflects the cyclical nature of funding for general elections, with additional activity beginning in preparation for the general election in 2011.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Provision of Electoral Services (M42)

Scope of Appropriation

Expenses

Output Performance Measures and Standards

Current and Past Policy Initiatives

Provision of Protective Fiduciary Services (M42)

Scope of Appropriation

Expenses

Output Performance Measures and Standards

Public Defence Service (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The increase in 2010/11 is mainly due to the expansion of the Public Defence Service and Duty Solicitor to Hamilton, Wellington and Christchurch.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Real Estate Agents Authority (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This funding ceased, as planned, in 2009/10 as the Authority was established on 17 November 2009.

Current and Past Policy Initiatives

Support and Assistance provided by Victim Support to Victims of Crime (M42)

Scope of Appropriation

Expenses

Output Performance Measures and Standards

Note 1 - Budgeted standards for 2010/11 for total numbers of incidents responded to and victims supported have been reduced by Victim Support because existing resources are being concentrated on supporting victims of serious crime or victims traumatised by more minor crime. This will see an increase in Victim Support capacity (as measured by the number of hours direct support provided to victims and the number of staff and volunteers available to provide front-line support). It represents a more focused targeting of Victim Support's limited resources to people with the greatest need for assistance.

Current and Past Policy Initiatives

Summary of Service Providers for Non-Departmental Outputs

The above table summarises funding to be allocated through Vote Justice 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

Administrative Assistance for Foreshore and Seabed Arrangements (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The appropriation for 2009/10 was increased from $5.400 million to $5.900 million by an expense transfer from 2008/09 for $5,000. Due to delays in negotiation activity because of a focus on the review of the Foreshore and Seabed Act 2004, a total of $5.700 million has been transferred from 2009/10 to the two future years. $3.700 million was transferred into 2010/11 and $2 million was transferred into 2011/12. Appropriations for these years were already $4.700 million and $1.400 million respectively.

Current and Past Policy Initiatives

Contribution to Foreshore and Seabed Negotiation Costs (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

The 2010/11 and outyears funding was transferred to a new Contribution toward all Foreshore and Seabed Negotiation Costs appropriation that more correctly reflected actual expenditure incurred.

Current and Past Policy Initiatives

Contribution toward all Foreshore and Seabed Negotiation Costs (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation was established in 2009/10 and the funding was transferred from the existing appropriation Contribution to Foreshore and Seabed Negotiation Costs. The new appropriation was established to ensure all expenditure incurred meets the technical definition of the scope of appropriation. An expense transfer of $968,000 was made from 2009/10 to 2010/11 for $700,000 and 2011/12 for $268,000 as negotiations have been delayed due to a focus on the review of the Foreshore and Seabed Act 2004.

Impairment of Offender Levy (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

Funding for the 2009/10 year was returned to the Crown as implementation of the Offenders Levy is now not expected to start until 2010/11.

Current and Past Policy Initiatives

Victims' Services (M42)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation was increased in 2009/10 by transfer of $3.072 million arising from the disestablishment of the Sentencing Council. The increase in 2010/11 is due to a transfer of $1.899 million of this additional funding from 2009/10 to 2010/11 to continue to fund services for victims.

Current and Past Policy Initiatives

Reporting Mechanisms

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

Part 6 - Details and Expected Results for Capital Expenditure

Part 6.1 - Departmental Capital Expenditure

Ministry of Justice - Capital Expenditure PLA (M42)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

Expenditure in 2009/10 included additional funding provided for the final stages of building the Supreme Court.

Part 6.2 - Non-Departmental Capital Expenditure

Legal Services Agency (M42)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

Final stages of funding provided for development of the Legal Services Management System.

Performance Information for Appropriations Vote Parliamentary Counsel

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Attorney-General (M5)

ADMINISTERING DEPARTMENT: Parliamentary Counsel Office

MINISTER RESPONSIBLE FOR PARLIAMENTARY COUNSEL OFFICE: Attorney-General

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Attorney-General is responsible for appropriations in Vote Parliamentary Counsel for the 2010/11 financial year covering the following:

• a total of just over $9.500 million for drafting Government Bills (including amendments) and statutory regulations, and examining and reporting on local Bills and private Bills, and drafting amendments to them
• a total of nearly $11.600 million for supplying printed copies of Government Bills and Government Supplementary Order Papers (SOPs), pamphlet copies of Acts and Statutory Regulations, and annual volumes of Acts and Statutory Regulations, compiling reprints of Acts and Statutory Regulations with their amendments incorporated and publishing them, publishing the Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force in printed form, and providing them for sale at designated bookshops and by subscription, providing free public access via the Internet to an electronic database of legislation, including Bills and SOPs, and maintaining the electronic database of legislation in an up-to-date form
• a total of nearly $5 million on the purchase or development of assets by and for the use of the Parliamentary Counsel Office, as authorised by section 24 (1) of the Public Finance Act 1989.

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

Part 1.2 - High-Level Objectives of the Vote

Objectives of the Vote

Vote Parliamentary Counsel's overall outcome is to contribute to parliamentary democracy under the rule of law by supporting Parliament and the executive in their law-making roles, through its two strategic objectives:

• high quality legislative drafting services, and
• ready access to New Zealand legislation.

and contributes to the Government's objectives by:

• drafting changes in the law that are necessary to implement Government policies, and
• making the law passed by Parliament and the executive accessible to the public.

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Analysis of Significant Trends

Total Vote: All Appropriations

In the 2007/08 year, additional departmental output expenditure funding of $3.374 million was provided for the implementation of the New Zealand Legislation system. Funding was also provided for ongoing support of the New Zealand Legislation system for the 2008/09 year and outyears.

Part 2 - Details and Expected Performance for Output Expenses

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

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

Access to Legislation (M5)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The appropriation increased by $1.060 million due to savings totalling $804,000 being identified in the 2009/10 year and returned to the Crown.

Output Performance Measures and Standards

Note 1

The quality standard is that:

• the annual volumes of Acts contain correct copies of the Acts of Parliament and the annual volumes of Statutory Regulations contain correct copies of the Statutory Regulations
• reprints of Acts and Statutory Regulations correctly state the law enacted or made by the Acts and Statutory Regulations reprinted and by the amendments to that legislation
• the electronic database of Acts (both as enacted and with their amendments incorporated), Statutory Regulations (both as made and with their amendments incorporated), Bills, and SOPs is up to date
• Bills, SOPs, Acts of Parliament, Statutory Regulations, the annual volumes, reprints, and the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force is published in accordance with best industry practice.

Conditions on Use of Appropriation

Current and Past Policy Initiatives

Law Drafting Services (M5)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The appropriation increased by $772,000 due to savings totalling $473,000 being identified in the 2009/10 year and returned to the Crown.

Output Performance Measures and Standards

Note 2

All Category 1 Bills (7 in total) were drafted in 2009. All Category 2 Bills that were required to be progressed by Ministers were drafted at least to a certain stage. The primary reasons why less than 60% of Category 2 Bills were passed in 2009 were delays or changes in policy decisions and decisions by one or more Ministers.

Note 3

The quality standard is that:

• the legislation produced is drafted as clearly and simply as possible
• the legislation produced gives effect to Government policy
• the legislation produced is legally effective
• the instructing agency is satisfied with the final product
• advice on legislative drafting matters is provided in a professional, impartial, and responsive manner.

The timeliness standard is that:

• drafts of legislation are produced within required deadlines.

Note 4

The quality standard is that:

• Bills and Statutory Regulations are legally effective, clear, consistent with other legislation, the general law, and international law
• Bills and Statutory Regulations are consistent with the policy they implement, legal principle, the New Zealand Bill of Rights Act 1990, and the Human Rights Act 1993
• advice given on matters relating to the provision of legislative drafting services, including advice on legislative drafting, parliamentary procedure, executive government process, and the law, is sound, practical, and clear.

The timeliness standard is:

• Bills, Statutory Regulations, and SOPs are drafted in accordance with time frames set by, or agreed with, the Government, select committees, and departments.

Note 5

The quality standard is that:

• advice given on matters relating to the provision of legislative drafting services, including explaining the changes made by the revision tracked version of a Bill, is objective, accurate, and sufficient.

The timeliness standard is that:

• revision tracked documents are provided for the Select Committee in accordance with deadlines set by or negotiated with the Committee.

Conditions on Use of Appropriation

Current and Past Policy Initiatives

Part 6 - Details and Expected Results for Capital Expenditure

Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Parliamentary Counsel Office - Capital Expenditure PLA (M5)

Scope of Appropriation

Capital Expenditure

Performance Information for Appropriations Vote Police

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Police (M51)

ADMINISTERING DEPARTMENT: New Zealand Police

MINISTER RESPONSIBLE FOR NEW ZEALAND POLICE: Minister of Police

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

• a total of $3.179 million for Policy Advice and Ministerial Servicing
• a total of $112.259 million for General Crime Prevention Services
• a total of $93.669 million for Specific Crime Prevention Services and Maintenance of Public Order
• a total of $441.361 million for Police Primary Response Management
• a total of $407.491 million for Investigations
• a total of $110.464 million on Case Resolution and Support to Judicial Process
• a total of $296.525 million for the Road Safety Programme
• a total of $1.857 million in non-departmental appropriations for reimbursing telecommunication providers the costs incurred in making their legacy networks compliant with the requirements of the Telecommunications (Interception Capability) Act 2004, and for a contribution to the United Nations Drug Control Programme.

The Department expects to collect a total of $86.200 million of Crown revenue in 2010/11, largely arising from traffic infringement fees. These are collected on an agency basis for the Crown.

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

Part 1.2 - High-Level Objectives of the Vote

Government Priorities and Outcomes - Links to Appropriations

Part 1.3 - Trends in the Vote

Summary of Financial Activity

New Policy Initiatives

Analysis of Significant Trends

Vote Police will increase by $51.805 million between 2009/10 and 2013/14 primarily for additional Police staff, Criminal Investigations (Bodily Samples) Amendment Act 2009 and Fresh Start for Young Offenders.

Over the last five years increased funding for Vote Police has been largely directed to:

• increase in staff capacity
• implementation of wage round settlements in 2006, 2008 and 2009
• additional capital charge on property revaluation
• replacement of Police radio network
• Criminal Investigations (Bodily Samples) Amendment Act 2009
• deployments to Tonga Police Development project, United Nations Integrated Mission to Timor-Leste and Papua New Guinea: Bougainville Community Policing.

Capital Injection

The new initiatives include a capital contribution of $960,000 in 2009/10 for Anti-Money Laundering and Countering Financing of Terrorism, Domestic Violence (Enhancing Safety) Bill and Criminal Investigations (Bodily Samples) Amendment Act 2009.

Over the last five years the major factors that have influenced the level of capital contributions were:

• developing infrastructure to match the increase in staff
• building a new custodial facility at Rotorua Police Station
• enhancing Police security infrastructure to a level necessary to maintain the confidentiality, integrity and availability of Police data
• upgrading and replacing Police breath testing equipment in line with the Government's policy of lower blood alcohol
• road policing devices: hand-held evidential breath testing devices, oral fluid drug testing devices, commercial vehicle investigating unit, portable scales, automatic number plate recognition and e-ticketing devices
• replacing the Police radio network.

Part 2 - Details and Expected Performance for Output Expenses

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

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

Case Resolution and Support to Judicial Process (M51)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The change provides for:

• additional staff
• Criminal Investigations (Bodily Samples) Amendment Act 2009 and
• 2009/10 funding was transferred to meet the costs of other priorities in the Justice Sector.

Output Performance Measures and Standards

Current and Past Policy Initiatives

General Crime Prevention Services (M51)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The change provides for:

• additional staff
• Fresh Start for Young Offenders, and
• 2009/10 funding was transferred to meet the costs of other priorities in the Justice Sector.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Investigations (M51)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The increase in appropriation provides for:

• increase in staff
• 2009/10 funding was transferred to meet the costs of other priorities in the Justice Sector
• Criminal Investigations (Bodily Samples) Amendment Act 2009
• Anti-Money Laundering and Countering Financing of Terrorism
• Road Safety budget bids 2007: Digital Radio
• contribution to fund the Independent Police Conduct authority's Inquiry into Police conduct in 2009/10
• the above are partly offset by reduction in funding for Taser implementation.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Police Primary Response Management (M51)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The increase provides for:

• increase in staff
• 2009/10 funding was transferred to meet the costs of other priorities in the Justice Sector
• Domestic Violence (Enhancing Safety) Bill $741,000
• Road Safety bids 2007: Digital Radio and
• replacement of the Mobile Radio network
• the above are partly offset by reduction in funding for Taser implementation.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Policy Advice and Ministerial Servicing (M51)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The change provides for:

• 2009/10 funding was transferred to meet the costs of other priorities in the Justice Sector.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Road Safety Programme (M51)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The increase provides for:

• 2009/10 funding was transferred to meet the costs of other priorities in the Justice Sector
• increase in staff
• replacement of the Police Land Mobile Network
• reduction of waiting time in Auckland district courts
• the above are partly offset by reduction in funding for Taser implementation.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Specific Crime Prevention Services and Maintenance of Public Order (M51)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The decrease provides for:

• funding in 2009/10 for deployments to Timor-Leste, Papua New Guinea Phase 4, Tonga Police Development project, support to Cook Islands National Police and the Solomon Islands ceases and are subject to Cabinet decision for continuation in 2010/11
• the above is partly offset by additional funding for increase in staff, and
• 2009/10 funding that was transferred to meet the costs of other priorities in the Justice sector.

Output Performance Measures and Standards

Current and Past Policy Initiatives

Part 5 - Details and Expected Results for Other Expenses

Part 5.1 - Departmental Other Expenses

Compensation for Confiscated Firearms (M51)

Scope of Appropriation

Expenses

Current and Past Policy Initiatives

Part 5.2 - Non-Departmental Other Expenses

Telecommunications Interception Capability (M51)

Scope of Appropriation

Expenses

Current and Past Policy Initiatives

United Nations Drug Control Programme (M51)

Scope of Appropriation

Expenses

Current and Past Policy Initiatives

Part 6 - Details and Expected Results for Capital Expenditure

Part 6.1 - Departmental Capital Expenditure

New Zealand Police - Capital Expenditure PLA (M51)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

The reduction is provided for:

• rephasing of property expenditure $15 million, and
• re-classification of vehicle capital expenditure from 'plant' to 'other'.

Performance Information for Appropriations Vote Serious Fraud

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Police (M51)

ADMINISTERING DEPARTMENT: Serious Fraud Office

MINISTER RESPONSIBLE FOR SERIOUS FRAUD OFFICE: Minister of Police

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

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

• a total of over $7 million for the detection, investigation and prosecution of cases of suspected serious or complex fraud offending brought to the attention of, or detected by, the Serious Fraud Office
• a total of $530,000 on the purchase or development of assets by and for the use of the Serious Fraud Office.

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

Part 1.2 - High-Level Objectives of the Vote

Government Priorities and Outcomes - Links to Appropriations

Objectives of the Vote

The work under Vote Serious Fraud directly contributes to the Government's economic and justice priorities through its activities to reduce the occurrence, impact and harm of serious fraud and to ensure that perpetrators are being held to account and creating greater public confidence in New Zealand capital markets domestically and internationally.

Vote Serious Fraud ensures that there are systems and capability in place to detect, investigate and prosecute complex or serious fraud within New Zealand.

Part 1.3 - Trends in the Vote

Summary of Financial Activity

New Policy Initiatives

Analysis of Significant Trends

Following Cabinet decision made in December 2009, the departmental output expense Investigation and Prosecution of Complex or Serious Fraud was increased in 2009/10 to fund additional capability ($1.102 million in 2009/10 and $1.890 million in outyears). This increase was funded by a transfer from departmental output expense Civil Forfeiture of Criminal Assets. The Civil Forfeiture of Criminal Assets departmental output expense ceases from 2010/11 and outyears. The functions of this output expense were transferred to the Police. Following the Cabinet decision, an organisational review of the Serious Fraud Office was completed in April 2010.

A capital injection of $690,000 was provided in 2008/09, but due to pending Cabinet decisions was not spent in 2009/10. A capital investment of $530,000 is planned for 2010/11 to support the new organisational structure and processes resulting from the organisational review. This investment will enable the Serious Fraud Office to upgrade its Information Technology Systems in terms of hardware and case management software to enable more effective and efficient workflow and collaboration processes and to reconfigure office accommodation and equipment to better utilise space.

Part 2 - Details and Expected Performance for Output Expenses

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

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

Investigation and Prosecution of Complex or Serious Fraud (M51)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

Additional funding provided in 2009/10, through a transfer from Civil Forfeiture of Criminal Assets departmental output expense appropriation, to increase the capability of the Serious Fraud Office to deliver services, following an organisational review.

Output Performance Measures and Standards

Note 1 - Category A cases are those that either:

• investigation into a fraud alleging $10 million losses or greater, or
• investigation into a fraud alleging 100 or more investors/victims, or
• involve bribery or corruption of a public official.

Category B cases are all other investigations.

Note 2 - "Part I investigation" is a preliminary investigation conducted for the purpose of detecting complex or serious fraud. "Part II investigation" is a full investigation into a suspected case of complex or serious fraud.

Note 3 - Measure to recognise that an investigation is a long process made up of several key phases. To ensure that each phase of an investigation is monitored for efficiency and effectiveness. Targets are new and some levels benchmarked against the United Kingdom Serious Fraud Office.

Note 4 - Measure to ensure a process is in place which will keep the public better informed, in order to create confidence in capital markets and deter future instances of serious fraud. To provide information to the business sector, so they can learn from instances of serious and complex fraud and put mechanisms in place to prevent or minimise them in the future. Target is new and level benchmarked against United Kingdom Serious Fraud Office.

Note 5 - Measure to ensure that the processes during an investigation are effective and cost efficient given the level of serious fraud and other economic and justice impacts. To ensure that the quality of information and evidence gathered is kept at a level where Counsel can move the case forward to prosecution if it is so deemed, and that sentencing reflects the nature of the charges brought. Targets for quality assurance are refined (and some new) and some levels benchmarked against United Kingdom Serious Fraud Office.

Note 6 - Measure to reflect the level and type of work that the Serious Fraud Office manages as part of its investigations and prosecutions work and non-statutory powers, and demonstrates increased active collaboration with Police on specific inquiries and cases.

Current and Past Policy Initiatives

Part 6 - Details and Expected Results for Capital Expenditure

Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Serious Fraud Office - Capital Expenditure PLA (M51)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

A capital injection of $690,000 was provided in 2008/09 to enable the Serious Fraud Office to upgrade office accommodation and Information Technology Assets. Due to pending Cabinet decisions this capital investment was not spent in 2009/10 and $530,000 is planned to be spent in 2010/11.

Expected Results

Statements of Forecast Service Performance

The Statements of Forecast Service Performance of departments included in the Justice 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 Justice Sector. In one instance, this includes reference to classes of outputs within appropriations presented in a Vote in another sector.

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 41(1)(a)-(f) 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 2010 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 from services 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 department 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 department 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 an original maturity of 3 months or less.

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 an original maturity of no more than three months
• 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 prepared under New Zealand generally accepted accounting practice are described in the statement of entity-specific accounting policies. The last audited financial statements (30 June 2009) were prepared in accordance with NZ IFRS (New Zealand Equivalents to International Financial Reporting Standards) as appropriate for public benefit entities.

Forecast Financial Statements Department of Corrections

Statement of Forecast Comprehensive Income for the year ending 30 June 2011

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011

Forecast Statement of Financial Position as at 30 June 2011

Statement of Forecast Cash Flows for the year ending 30 June 2011

Statement of Significant Assumptions

These forecast financial statements have been compiled on the basis of government policies and the Department of Corrections' outcome agreements with the Minister of Corrections at the time the statements were finalised.

The 2009/10 budgeted figures are based on management's judgements, estimates and assumptions of the final 2009/10 outcome and is used as the opening position for 2010/11 forecasts. Estimated year end information for 2009/10 is used as the opening position for the 2010/11 forecasts. Actual results may differ from these estimates and these variations may be material.

The capital charge rate for the year ending 30 June 2011 is assumed to be 7.5% per annum.

Statement of Entity-Specific Accounting Policies

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

Reporting Entity

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

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

Specific Accounting Policies

Property, Plant and Equipment

The capitalisation thresholds applied are set out below:

Depreciation

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

Intangible Assets

The capitalisation thresholds applied are set out below:

Amortisation

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

Cost Allocation

Direct costs are charged to outputs based on actual consumption or activity analysis. Pre-established ratios have been used in some instances.

Indirect costs are allocated to outputs based on appropriate resource consumption and/or activity analysis.

Non-current Assets Held for Sale

Non-current assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction, not through continuing use. Non-current assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment losses for write-downs of non-current assets held for sale are recognised in the Statement of Financial Performance.

Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

Biological Assets

The Department recognises biological assets or agriculture produce when, and only when:

• the Department controls the assets as a result of past events
• it is probable that future economic benefits associated with the asset will flow to the Department, and
• the fair value or costs of the asset can be measured reliably.

Biological Assets managed for harvesting into agricultural produce are recorded at fair value less point of sale costs, with any realised gains or losses reported in the Statement of Financial Performance.

The Department's valuations incorporate any material point of sale costs in the valuation.

The Department's biological assets are forests and livestock.

Forests

Forestry assets are independently revalued annually at fair value less estimated point of sale costs. Fair value is determined based on the present value of expected net cash flows discounted at a current market determined pre-tax rate.

Gains or losses arising on initial recognition of biological assets at fair value less estimated point of sale costs and from a change in fair value less estimated point of sale costs are recognised in the Statement of Financial Performance.

The costs to maintain the forestry assets are included in the Statement of Financial Performance.

Livestock

Livestock assets are recorded at fair value less point of sale costs.

Gains and losses due to changes in the per head value of the livestock at balance date are taken to the Statement of Financial Performance.

Gains and losses due to changes in livestock numbers are taken directly to the Statement of Financial Performance.

Any material differences in fair value are taken to the Statement of Financial Performance.

Notes to the Financial Statements

Note 1 - Operating Expenses

Note 2 - Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the year ending 30 June 2011

Forecast Financial Statements Crown Law Office

Statement of Forecast Comprehensive Income for the year ending 30 June 2011

Statement of Forecast Changes in Taxpayers' Funds for the year ending 30 June 2011

Forecast Statement of Financial Position as at 30 June 2011

Statement of Forecast Cash Flows for the year ending 30 June 2011