Supplementary estimates of appropriations

Vote Customs - Supplementary Estimates 2015/16

APPROPRIATION MINISTER(S): Minister of Customs (M21)

APPROPRIATION ADMINISTRATOR: New Zealand Customs Service

RESPONSIBLE MINISTER FOR NEW ZEALAND CUSTOMS SERVICE: Minister of Customs

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2015/16
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Clearance and Enforcement Services Related to Craft (M21)

This appropriation is limited to the provision of services relating to craft arriving in and departing from New Zealand, including clearance of craft, and protection of New Zealand's interests through interventions, investigations and enforcement.
9,395 (1,257) 8,138

Clearance and Enforcement Services Related to Goods (M21)

This appropriation is limited to the provision of services relating to goods crossing the border, including clearance of goods, assessment and audit of revenue, trade compliance and supply chain security assurance, and protection of New Zealand's interests through interventions, audits, investigations and enforcement.
69,480 602 70,082

Clearance and Enforcement Services Related to Passengers and Crew (M21)

This appropriation is limited to the provision of services relating to passengers and crew crossing the border, including collecting information, clearance of people and their possessions, and protection of New Zealand's interests through interventions, investigations and enforcement.
57,545 3,701 61,246

Information and Intelligence Services (M21)

This appropriation is limited to the provision of information, intelligence and risk assessment services to external clients, and the operation of the National Maritime Coordination Centre.
15,629 (3,539) 12,090

International Services and Ministerial Servicing (M21)

This appropriation is limited to the provision of international services, obligations, and assistance, and the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
4,850 4,265 9,115

Policy Advice (M21)

This appropriation 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.
2,779 1,766 4,545

Revenue Collection (M21)

This appropriation is limited to the provision of services relating to receipt and processing of revenues owing to the Crown and other agencies, revenue assurance, credit and debt management.
7,046 1,286 8,332

Total Departmental Output Expenses

166,724 6,824 173,548

Departmental Capital Expenditure

     

New Zealand Customs Service - Capital Expenditure PLA (M21)

This appropriation is limited to the purchase or development of assets by and for the use of the New Zealand Customs Service, as authorised by section 24(1) of the Public Finance Act 1989.
14,786 10,214 25,000

Total Departmental Capital Expenditure

14,786 10,214 25,000

Non-Departmental Other Expenses

     

Change in Doubtful Debt Provision (M21)

Provisioning of Doubtful Debts on Customs Crown Revenue.
8,000 - 8,000

World Customs Organization (M21)

New Zealand's contribution to the operating budget of the WCO.
52 6 58

Total Non-Departmental Other Expenses

8,052 6 8,058

Total Annual and Permanent Appropriations

189,562 17,044 206,606

Capital Injection Authorisations#

  2015/16
  Estimates Budget
$000
Supplementary
Estimates Budget
$000
Total Budget
$000
New Zealand Customs Service - Capital Injection (M21) 4,422 3,944 8,366

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2015/16
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 166,724 6,824 - 6,824 173,548
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 8,052 - 6 6 8,058
Capital Expenditure 14,786 10,214 - 10,214 25,000
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses - - - - -
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

189,562 17,038 6 17,044 206,606

Crown Revenue and Capital Receipts

         
Tax Revenue 12,969,000 N/A (22,000) (22,000) 12,947,000
Non-Tax Revenue 80 N/A - - 80
Capital Receipts - N/A - - -

Total Crown Revenue and Capital Receipts

12,969,080 N/A (22,000) (22,000) 12,947,080

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Clearance and Enforcement Services Related to Craft (M21)

Scope of Appropriation

This appropriation is limited to the provision of services relating to craft arriving in and departing from New Zealand, including clearance of craft, and protection of New Zealand's interests through interventions, investigations and enforcement.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 9,395 (1,257) 8,138
Revenue from the Crown 9,163 (1,244) 7,919
Revenue from Others 232 (13) 219

Reasons for Change in Appropriation

This appropriation has decreased by $1.257 million to $8.138 million for 2015/16 due to:

  • the increased funding of $139,000 for workforce modernisation and transformation
  • the increased funding of $39,000 for two Proceeds of Crime Funding initiatives
  • a decrease in funding of $10,000 returned to the Crown for the package of system initiatives under Budget 2015
  • the balance of $1.425 million relates to a reallocation of resources to meet performance standards across all areas of responsibilities and to align resource requirements with demand and activities.

Clearance and Enforcement Services Related to Goods (M21)

Scope of Appropriation

This appropriation is limited to the provision of services relating to goods crossing the border, including clearance of goods, assessment and audit of revenue, trade compliance and supply chain security assurance, and protection of New Zealand's interests through interventions, audits, investigations and enforcement.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 69,480 602 70,082
Revenue from the Crown 11,774 (2,525) 9,249
Revenue from Others 57,706 3,127 60,833

Reasons for Change in Appropriation

This appropriation has increased by $602,000 to $70.082 million for 2015/16 due to:

  • the increased funding of $1.605 million for two Proceeds of Crime Funding initiatives
  • a decrease in funding of $62,000 returned to the Crown for the package of system initiatives under Budget 2015
  • the balance of $941,000 relates to a reallocation of resources to meet performance standards across all areas of responsibilities and to align resource requirements with demand and activities.

Clearance and Enforcement Services Related to Passengers and Crew (M21)

Scope of Appropriation

This appropriation is limited to the provision of services relating to passengers and crew crossing the border, including collecting information, clearance of people and their possessions, and protection of New Zealand's interests through interventions, investigations and enforcement.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 57,545 3,701 61,246
Revenue from the Crown 41,913 3,912 45,825
Revenue from Others 15,632 (211) 15,421

Reasons for Change in Appropriation

This appropriation has increased by $3.701 million to $61.246 million for 2015/16 due to:

  • the increased funding of $2.451 million for Managing our Border by expanding the use of SmartGate automated passenger processing technology
  • the increased funding of $624,000 for the 2% Consumer Price Index (CPI) adjustment for border clearance services
  • the increased funding of $300,000 for the implementation of the Border Clearance Levy
  • the increased funding of $290,000 for two Proceeds of Crime Funding initiatives
  • a decrease in funding of $83,000 returned to the Crown for the package of system initiatives under Budget 2015
  • the balance of $119,000 relates to a reallocation of resources to meet performance standards across all areas of responsibilities and to align resource requirements with demand and activities.

Memorandum Account

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000

Customs Border Clearance Levy

     
Opening Balance at 1 July - - -
Revenue - 32,520 32,520
Expenses - 32,520 32,520
Transfers and Adjustments - - -
Closing Balance at 30 June - - -

Information and Intelligence Services (M21)

Scope of Appropriation

This appropriation is limited to the provision of information, intelligence and risk assessment services to external clients, and the operation of the National Maritime Coordination Centre.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 15,629 (3,539) 12,090
Revenue from the Crown 12,677 (2,359) 10,318
Revenue from Others 2,952 (1,180) 1,772

Reasons for Change in Appropriation

This appropriation decreased by $3.539 million to $12.090 million for 2015/16 due to:

  • the increased funding of $142,000 for workforce modernisation and transformation
  • a decrease in funding of $9,000 returned to the Crown for the package of system initiatives under Budget 2015
  • the balance of $3.672 million relates to a reallocation of resources to meet performance standards across all areas of responsibilities and to align resource requirements with demand and activities.

International Services and Ministerial Servicing (M21)

Scope of Appropriation

This appropriation is limited to the provision of international services, obligations, and assistance, and the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 4,850 4,265 9,115
Revenue from the Crown 4,177 3,642 7,819
Revenue from Others 673 623 1,296

Reasons for Change in Appropriation

This appropriation increased by $4.265 million to $9.115 million for 2015/16 due to:

  • the increased funding of $206,000 for workforce modernisation and transformation
  • the increased funding of $1.213 million for customs-related partnership projects with countries within the Pacific and other regions
  • a decrease in funding of $8,000 returned to the Crown for the package of system initiatives under Budget 2015
  • the balance of $2.854 million relates to a reallocation of resources to meet performance standards across all areas of responsibilities and to align resource requirements with demand and activities.

Policy Advice (M21)

Scope of Appropriation

This appropriation 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 and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 2,779 1,766 4,545
Revenue from the Crown 2,766 1,757 4,523
Revenue from Others 13 9 22

Reasons for Change in Appropriation

This appropriation increased by $1.766 million to $4.545 million for 2015/16 due to:

  • the increased funding of $133,000 for workforce modernisation and transformation
  • the increased funding of $840,000 to produce the analysis related to the Low-value Imported Goods project
  • a decrease in funding of $5,000 returned to the Crown for the package of system initiatives under Budget 2015
  • the balance of $798,000 relates to a reallocation of resources to meet performance standards across all areas of responsibilities and to align resource requirements with demand and activities.

Revenue Collection (M21)

Scope of Appropriation

This appropriation is limited to the provision of services relating to receipt and processing of revenues owing to the Crown and other agencies, revenue assurance, credit and debt management.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 7,046 1,286 8,332
Revenue from the Crown 6,831 1,274 8,105
Revenue from Others 215 12 227

Reasons for Change in Appropriation

This appropriation increased by $1.286 million to $8.332 million for 2015/16 due to:

  • the increased funding of $164,000 for workforce modernisation and transformation
  • a decrease in funding of $11,000 returned to the Crown for the package of system initiatives under Budget 2015
  • the balance of $1.133 million relates to a reallocation of resources to meet performance standards across all areas of responsibilities and to align resource requirements with demand and activities.

2.3 - Departmental Capital Expenditure and Capital Injections

New Zealand Customs Service - Capital Expenditure PLA (M21)

Scope of Appropriation

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

Capital Expenditure

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 5,502 5,504 11,006
Intangibles 9,284 4,710 13,994
Other - - -

Total Appropriation

14,786 10,214 25,000

Reasons for Change in Appropriation

This appropriation increased by $10.214 million to $25 million for 2015/16. The increase is mainly due to the timing of capital expenditure between financial years including the staged implementation of the Joint Border Management System and the continuation of Customs' ongoing renewal and replacement of existing plant and equipment.

Capital Injections and Movements in Departmental Net Assets

New Zealand Customs Service

Details of Net Asset Schedule 2015/16
Main Estimates Projections
$000
2015/16
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2015/16
Opening Balance 136,818 136,818 Supplementary Estimates opening balance reflects the audited results as at 30 June 2015.
Capital Injections 4,422 8,366 This injection relates to the purchase of additional automated passenger processing gates (SmartGates).
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

141,240 145,184  

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses

World Customs Organization (M21)

Scope of Appropriation

New Zealand's contribution to the operating budget of the WCO.

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 52 6 58

Reasons for Change in Appropriation

This appropriation increased by $6,000 to $58,000 for 2015/16 due to an exchange rate change and an increase by the WCO in the amount payable.