Vote Defence - Supplementary Estimates 2012/13

Details of Appropriations#

Details of Annual and Permanent Appropriations#

Details of Projected Movements in Departmental
Net Assets#

Ministry of Defence

Information Supporting the Supplementary Estimates Vote Defence#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Defence (M22)

ADMINISTERING DEPARTMENT: Ministry of Defence

MINISTER RESPONSIBLE FOR MINISTRY OF DEFENCE: Minister of Defence

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Audit and Assessment of Performance (M22)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The appropriation was increased due to costs related to the strategic review of the output, offset by lower overhead expenses in 2012/13 which has resulted from the transfer to 2013/14 of the expected costs of an organisational review following the PIF findings. The organisational review was delayed in 2012/13 until a new Secretary of Defence had been appointed.

Management of Equipment Procurement (M22)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

The overall appropriation was increased due to the costs of pre-acquisition projects started in 2012/13, which are funded by the NZDF.

Revenue from Crown was decreased due to lower overhead expenses in 2012/13 because the costs of an organisational review have been transferred to 2013/14.

Policy Advice and Related Outputs MCOA (M22)

Scope of Appropriation

Explanation for Use of Multi-Class Output Expense Appropriation

This appropriation is limited to the provision of advice to the Minister and contributions to policy advice led by other agencies, Ministerial services, and other services that support the development and procurement of military capability, and the conduct of international defence relations. This appropriation is a MCOA because Ministerial services, assistance to development and procurement of military capability, and international defence relations support the provision of policy advice.

Expenses and Revenue

Reasons for Change in Appropriation

The appropriation was decreased due to lower overhead expenses in 2012/13 because the costs of an organisational review have been transferred to 2013/14.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

Ministry of Defence - Capital Expenditure PLA (M22)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

The increase in the appropriation is due to the timing of upgrades and replacement of information technology infrastructure.

Part 6.2 - Non-Departmental Capital Expenditure

Defence Equipment (M22)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

The reduction in the appropriation of $10.316 million is mainly due to suppliers not reaching contractual milestones and therefore the Ministry not making the associated payments, predominantly for helicopter projects. Two additional projects, Strategic Bearer Network and Maritime Helicopter Capability, were approved during the year, which increased the appropriation by $6.338 million and $20 million respectively.