Supplementary estimates of appropriations

Vote Corrections - Supplementary Estimates 2018/19

Publication type:
Supplementary estimates of appropriations
Status:
Current
Document (signed) date:
Issue date:
Part of:
Corporate author:
Government of New Zealand
Viewpoint:
Government
Publication category:
Budgets of the government
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
Fiscal year:
2018/19
Budget year:
2019
Budget vote:
Corrections
Last updated:

Formats and related files

Vote Corrections#

APPROPRIATION MINISTER(S): Minister of Corrections (M18)

APPROPRIATION ADMINISTRATOR: Department of Corrections

RESPONSIBLE MINISTER FOR DEPARTMENT OF CORRECTIONS: Minister of Corrections

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2018/19
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000		 Supplementary
Estimates
Budget
$000		 Total
Budget
$000

Departmental Output Expenses

     

Bail Support Services (M18)

This appropriation is limited to providing support services to defendants on bail.		 - 2,160 2,160

Re-offending is Reduced (M18)

This appropriation is limited to the provision of rehabilitation interventions and reintegration services to offenders serving custodial and community-based sentences that address the underlying causes of criminal offending and reduce re-offending.		 231,078 18,241 249,319

Total Departmental Output Expenses

231,078 20,401 251,479

Departmental Other Expenses

     

Transfer of Auckland Prison Wastewater Assets (M18)

This appropriation is limited to the transfer of Auckland Prison Wastewater Assets to Watercare Services Limited.		 - 9,100 9,100

Total Departmental Other Expenses

- 9,100 9,100

Departmental Capital Expenditure

     

Department of Corrections - Capital Expenditure PLA (M18)

This appropriation is limited to the purchase or development of assets by and for the use of the Department of Corrections, as authorised by section 24(1) of the Public Finance Act 1989.		 393,004 215,303 608,307

Total Departmental Capital Expenditure

393,004 215,303 608,307

Non-Departmental Other Expenses

     

Waikeria Corrections and Treatment Facility (M18)

This appropriation is limited to infrastructure improvements that are either a condition of the designation or otherwise necessary to enable the development of the Waikeria Corrections and Treatment Facility.		 - 12,800 12,800

Total Non-Departmental Other Expenses

- 12,800 12,800

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Ministerial Services MCA (M18)

The single overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.		 4,546 320 4,866

Departmental Output Expenses

     

Ministerial Services

This category is limited to Department responses to ministerial correspondence and parliamentary questions.		 1,987 320 2,307

Policy Advice

This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.		 2,559 - 2,559

Public Safety is Improved MCA (M18)

The single overarching purpose of this appropriation is to manage offenders serving custodial and community-based sentences in a manner so as to improve the safety of offenders, staff, victims and the public.		 1,337,095 35,826 1,372,921

Departmental Output Expenses

     

Information and administrative services to the judiciary and New Zealand Parole Board

This category is limited to 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.		 66,223 1,461 67,684

Prison-based Custodial Services

This category is limited to the provision of custodial services including under long-term service contracts and Public Private Partnerships for offenders lawfully required to be detained in custody. This includes remand prisoners (people awaiting trial and offenders convicted but not yet sentenced), those offenders sentenced to imprisonment, and any other offenders required to be lawfully detained in custody.		 1,034,448 31,053 1,065,501

Sentences and orders served in the community

This category is limited to the management and delivery of sentences and orders served in the community, and electronic monitoring of people on bail.		 236,424 3,312 239,736

Total Multi-Category Expenses and Capital Expenditure

1,341,641 36,146 1,377,787

Total Annual Appropriations and Forecast Permanent Appropriations

1,965,723 293,750 2,259,473

Capital Injection Authorisations#

  2018/19
  Estimates Budget
$000		 Supplementary
Estimates Budget
$000		 Total Budget
$000
Department of Corrections - Capital Injection (M18) 272,100 23,180 295,280

Supporting Information#

Part 1 - Vote as a Whole#

Summary of Financial Activity
  2018/19
    Supplementary Estimates  
  Estimates
$000		 Departmental
Transactions
$000		 Non-Departmental
Transactions
$000		 Total
Transactions
$000		 Total
$000

Appropriations

         
Output Expenses 231,078 20,401 - 20,401 251,479
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses - 9,100 12,800 21,900 21,900
Capital Expenditure 393,004 215,303 - 215,303 608,307
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 1,341,641 36,146 - 36,146 1,377,787
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

1,965,723 280,950 12,800 293,750 2,259,473

Crown Revenue and Capital Receipts

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

Total Crown Revenue and Capital Receipts

- N/A - - -

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Bail Support Services (M18)
Scope of Appropriation
This appropriation is limited to providing support services to defendants on bail.
Expenses and Revenue
  2018/19
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation - 2,160 2,160
Revenue from the Crown - 2,160 2,160
Revenue from Others - - -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve end-to-end bail support to defendants by providing a plan on how any identified needs would be met if bail is granted.

How Performance will be Assessed and End of Year Reporting Requirements
  • The number of defendants who received bail support services in courts.
  • The number of defendants who received bail support services in the community.
End of Year Performance Reporting

Performance information for this appropriation will be reported by Corrections in its 2018/19 Annual Report.

Reasons for Change in Appropriation

This is a new appropriation of $2.160 million for 2018/19 due to new funding for the Bail Support Services Pilot.

Re-offending is Reduced (M18)
Scope of Appropriation
This appropriation is limited to the provision of rehabilitation interventions and reintegration services to offenders serving custodial and community-based sentences that address the underlying causes of criminal offending and reduce re-offending.
Expenses and Revenue
  2018/19
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 231,078 18,241 249,319
Revenue from the Crown 201,269 13,473 214,742
Revenue from Others 27,060 4,768 31,828
Reasons for Change in Appropriation

This appropriation increased by $18.241 million to $249.319 million for 2018/19 due to:

  • $5.351 million transferred from 2017/18 to 2018/19 mainly relating to the Enhanced Mental Health Support Services initiative and various alcohol and other drug related initiatives
  • $4.400 million increase in revenue relating to prisoner canteen supply sales
  • $4.240 million in new funding for Housing and Support Services for People Managed by Corrections
  • $2.294 million in new funding from the Effective Justice Fund relating to a Therapeutic Prison Unit Pilot, Residential AOD for Female Defendants and Parolees, and Speech Language and Communication Needs initiatives
  • $1.400 million new funding relating to the Waikeria Corrections and Treatment Facility Project Agreement
  • $188,000 mainly relating to the rephasing of depreciation funding to align with changes to useful life assumptions
  • $185,000 funding relating to inter-departmental staff secondments, and
  • $183,000 funding relating to the Health and Safety Functional Leadership Programme.

2.2 - Departmental Other Expenses#

Transfer of Auckland Prison Wastewater Assets (M18)
Scope of Appropriation
This appropriation is limited to the transfer of Auckland Prison Wastewater Assets to Watercare Services Limited.
Expenses
  2018/19
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 9,100 9,100
What is Intended to be Achieved with this Appropriation

This appropriation is intended to facilitate the transfer of wastewater assets to Watercare Services Limited.

How Performance will be Assessed and End of Year Reporting Requirements

Performance will be measured by the execution of the agreement relating to the transfer of wastewater assets to Watercare Services Ltd.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Corrections in its 2018/19 Annual Report.

Reasons for Change in Appropriation

This is a new appropriation of $9.100 million for 2018/19 to facilitate the transfer of wastewater assets to Watercare Services Limited.

2.3 - Departmental Capital Expenditure and Capital Injections#

Department of Corrections - Capital Expenditure PLA (M18)
Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the Department of Corrections, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2018/19
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 364,504 208,239 572,743
Intangibles 28,500 7,064 35,564
Other - - -

Total Appropriation

393,004 215,303 608,307
Reasons for Change in Appropriation

This appropriation increased by $215.303 million to $608.307 million for 2018/19 due to:

  • $157.971 million relating to the development of the new Waikeria Corrections and Treatment Facility under a Public Private Partnership arrangement
  • $50.268 million relating to construction on the Modular Build Programme which is part of the Prison Capacity Programme, and
  • $7.064 million of intangibles relating to software development.
Capital Injections and Movements in Departmental Net Assets
Department of Corrections
Details of Net Asset Schedule 2018/19
Main Estimates Projections
$000		 2018/19
Supplementary Estimates Projections
$000		 Explanation of Projected Movements in 2018/19
Opening Balance 2,504,308 2,500,036  
Capital Injections 272,100 295,280 Increase mainly relates to funding for the Waikeria Corrections and Treatment Facility.
Capital Withdrawals (20,000) (20,000) The capital withdrawal represents the surplus capital reserves as a result of Corrections utilising private sector finance for the construction of the new maximum security facility at Auckland Prison.
Surplus to be Retained (Deficit Incurred) (2,749) (90,897) The projected deficit mainly relates to the un-realised year to date fair value movement on the departmental interest rate swap entered into with New Zealand Debt Management to manage the risk relating to public private partnership transactions.
Other Movements - -  

Closing Balance

2,753,659 2,684,419  

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Waikeria Corrections and Treatment Facility (M18)
Scope of Appropriation
This appropriation is limited to infrastructure improvements that are either a condition of the designation or otherwise necessary to enable the development of the Waikeria Corrections and Treatment Facility.
Expenses
  2018/19
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000
Total Appropriation - 12,800 12,800
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve infrastructure improvements necessary to enable the development of the Waikeria Corrections and Treatment Facility, including safety and access improvements on the local road leading to the facility.

How Performance will be Assessed and End of Year Reporting Requirements
  • Completion of safety and access improvements on the local road leading to the Waikeria Corrections and Treatment Facility.
  • Continuation of design of infrastructure improvements required to enable the development of the Waikeria Corrections and Treatment Facility.
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Corrections in the Vote Corrections Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

This is a new appropriation of $12.800 million for 2018/19 to facilitate continued infrastructure improvements relating to the Waikeria Corrections and Treatment Facility and to provide safety and access improvements on the local road.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Ministerial Services (M18)
Overarching Purpose Statement
The single overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
Scope of Appropriation
Departmental Output Expenses
Ministerial Services
This category is limited to Department responses to ministerial correspondence and parliamentary questions.
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.
Expenses, Revenue and Capital Expenditure
  2018/19
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

4,546 320 4,866

Departmental Output Expenses

     
Ministerial Services 1,987 320 2,307
Policy Advice 2,559 - 2,559

Funding for Departmental Output Expenses

     

Revenue from the Crown

4,541 320 4,861
Ministerial Services 1,985 320 2,305
Policy Advice 2,556 - 2,556

Revenue from Others

5 - 5
Ministerial Services 2 - 2
Policy Advice 3 - 3
Reasons for Change in Appropriation

This appropriation increased by $320,000 to $4.866 million for 2018/19 due to a transfer from the Public Safety is Improved MCA to reflect an increased volume of correspondence and strengthening of the Ministerial Services team.

Public Safety is Improved (M18)
Overarching Purpose Statement
The single overarching purpose of this appropriation is to manage offenders serving custodial and community-based sentences in a manner so as to improve the safety of offenders, staff, victims and the public.
Scope of Appropriation
Departmental Output Expenses
Information and administrative services to the judiciary and New Zealand Parole Board
This category is limited to 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.
Prison-based Custodial Services
This category is limited to the provision of custodial services including under long-term service contracts and Public Private Partnerships for offenders lawfully required to be detained in custody. This includes remand prisoners (people awaiting trial and offenders convicted but not yet sentenced), those offenders sentenced to imprisonment, and any other offenders required to be lawfully detained in custody.
Sentences and orders served in the community
This category is limited to the management and delivery of sentences and orders served in the community, and electronic monitoring of people on bail.
Expenses, Revenue and Capital Expenditure
  2018/19
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

1,337,095 35,826 1,372,921

Departmental Output Expenses

     
Information and administrative services to the judiciary and New Zealand Parole Board 66,223 1,461 67,684
Prison-based Custodial Services 1,034,448 31,053 1,065,501
Sentences and orders served in the community 236,424 3,312 239,736

Funding for Departmental Output Expenses

     

Revenue from the Crown

1,333,306 34,979 1,368,285
Information and administrative services to the judiciary and New Zealand Parole Board 66,150 1,142 67,292
Prison-based Custodial Services 1,030,936 30,525 1,061,461
Sentences and orders served in the community 236,220 3,312 239,532

Revenue from Others

3,789 847 4,636
Information and administrative services to the judiciary and New Zealand Parole Board 73 319 392
Prison-based Custodial Services 3,512 528 4,040
Sentences and orders served in the community 204 - 204
Reasons for Change in Appropriation

This appropriation increased by $35.826 million to $1,372.921 million for 2018/19 due to:

  • $20.038 million transferred from 2017/18 to 2018/19 mainly relating to Holidays Act 2003 compliance, Parole Ready Remand Triage Project and Prison Capacity Feasibility Study
  • $5.821 million relating to the rephasing of depreciation funding to align with changes to useful life assumptions
  • $5.700 million funding following the approval to execute the project agreement for construction of the new Waikeria Corrections and Treatment Facility
  • $3 million new funding relating to Accommodation Options to Support a More Effective Justice System and a Safer New Zealand
  • $887,000 from the Effective Justice Fund relating to Phone Applications for Victims, Residential AOD for Female Defendants and Parolees, and Speech Language and Communication Needs initiatives
  • $319,000 funding relating to inter-departmental staff secondments
  • $291,000 relating to the Waikeria Corrections and Treatment Facility capital injection, and
  • $90,000 relating to liquidated damages to offset the additional costs as a result of the delayed construction of Auckland Prison.

These are partly offset by a transfer of $320,000 to the Policy Advice and Ministerial Services MCA to reflect an increased volume of correspondence and strengthening of the Ministerial Services team.