Supplementary estimates of appropriations

Vote Defence - Supplementary Estimates 2012/13

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

ADMINISTERING DEPARTMENT: Ministry of Defence

MINISTER RESPONSIBLE FOR MINISTRY OF DEFENCE: Minister of Defence

Details of Appropriations#

Details of Annual and Permanent Appropriations#

Details of Annual and Permanent Appropriations - Defence
  2012/13
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Audit and Assessment of Performance (M22)

This appropriation is limited to audits and assessments of the New Zealand Defence Force and the Ministry of Defence.
1,927 143 2,070

Management of Equipment Procurement (M22)

Managing procurement or refurbishment, on behalf of the Crown, of various items of equipment contributing to a capability of the New Zealand Defence Force.
3,969 2,070 6,039

Policy Advice and Related Outputs MCOA (M22)

5,970 (341) 5,629
Ministerial Services
This output class is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
298 (17) 281
Policy Advice
This output class 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 relating to defence and national security.
3,770 (215) 3,555
Policy Support
This output class is limited to the provision of services (other than defence policy) that support the development and procurement of military capability, and the conduct of international defence relations.
1,902 (109) 1,793

Total Departmental Output Expenses

11,866 1,872 13,738

Departmental Capital Expenditure

     

Ministry of Defence - Capital Expenditure PLA (M22)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Defence, as authorised by section 24(1) of the Public Finance Act 1989.
300 100 400

Total Departmental Capital Expenditure

300 100 400

Non-Departmental Capital Expenditure

     

Defence Equipment (M22)

This appropriation is limited to the purchase, modification or refurbishment of major items of defence equipment for the New Zealand Defence Force.
160,230 (10,316) 149,914

Total Non-Departmental Capital Expenditure

160,230 (10,316) 149,914

Total Annual and Permanent Appropriations

172,396 (8,344) 164,052

Details of Projected Movements in Departmental
Net Assets#

Ministry of Defence

Ministry of Defence - Details of Projected Movements in Departmental Net Assets - Defence
Details of Net Asset Schedule 2012/13
Main Estimates Projections
$000
2012/13
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2012/13
Opening Balance 3,416 3,416 Supplementary Estimates opening balance reflects the audited results as at 30 June 2012.
Capital Injections - -  
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

3,416 3,416  

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

Summary of Financial Activity - Defence
  2012/13
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 11,866 1,872 - 1,872 13,738
Benefits and Other Unrequited Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses - - - - -
Capital Expenditure 160,530 100 (10,316) (10,216) 150,314
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -

Total Appropriations

172,396 1,972 (10,316) (8,344) 164,052

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 100 N/A - - 100
Capital Receipts 172,306 N/A (75,693) (75,693) 96,613

Total Crown Revenue and Capital Receipts

172,406 N/A (75,693) (75,693) 96,713

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Audit and Assessment of Performance (M22)

Scope of Appropriation

This appropriation is limited to audits and assessments of the New Zealand Defence Force and the Ministry of Defence.

Expenses and Revenue

Expenses and Revenue - Audit and Assessment of Performance (M22) - Defence
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 1,927 143 2,070
Revenue from Crown 1,927 143 2,070
Revenue from Other - - -

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

Managing procurement or refurbishment, on behalf of the Crown, of various items of equipment contributing to a capability of the New Zealand Defence Force.

Expenses and Revenue

Expenses and Revenue - Management of Equipment Procurement (M22) - Defence
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 3,969 2,070 6,039
Revenue from Crown 3,969 (302) 3,667
Revenue from Other - 2,372 2,372

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

Ministerial Services
This output class is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
Policy Advice
This output class 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 relating to defence and national security.
Policy Support
This output class is limited to the provision of services (other than defence policy) that support the development and procurement of military capability, and the conduct of international defence relations.

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

Expenses and Revenue - Policy Advice and Related Outputs MCOA (M22) - Defence
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000

Total Appropriation

5,970 (341) 5,629
Ministerial Services 298 (17) 281
Policy Advice 3,770 (215) 3,555
Policy Support 1,902 (109) 1,793

Revenue from Crown

5,970 (341) 5,629
Ministerial Services 298 (17) 281
Policy Advice 3,770 (215) 3,555
Policy Support 1,902 (109) 1,793

Revenue from Other

- - -
Ministerial Services - - -
Policy Advice - - -
Policy Support - - -

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

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

Capital Expenditure

Capital Expenditure - Ministry of Defence Capital Expenditure PLA (M22) - Defence
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 110 37 147
Intangibles 190 63 253
Other - - -

Total Appropriation

300 100 400

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

This appropriation is limited to the purchase, modification or refurbishment of major items of defence equipment for the New Zealand Defence Force.

Capital Expenditure

Capital Expenditure - Defence Equipment (M22) - Defence
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 160,230 (10,316) 149,914

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.