Formats and related files
APPROPRIATION MINISTER(S): Minister of Defence (M22)
APPROPRIATION ADMINISTRATOR: Ministry of Defence
RESPONSIBLE MINISTER FOR MINISTRY OF DEFENCE: Minister of Defence
Details of Appropriations and Capital Injections#
Annual and Permanent Appropriations#
| 2016/17 | |||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Estimates Budget $000 |
Supplementary Estimates Budget $000 |
Total Budget $000 |
Departmental Output Expenses |
|||
Evaluation, Audit & Assessment of Performance (M22)This appropriation is limited to the evaluations, and audits and assessments of the New Zealand Defence Force and the Ministry of Defence. |
2,393 | (6) | 2,387 |
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. |
8,637 | 294 | 8,931 |
Total Departmental Output Expenses |
11,030 | 288 | 11,318 |
Departmental Other Expenses |
|||
Earthquake/Storm Damages (M22)This appropriation is limited to writing off, or making good damage to, departmental assets and re-establishing departmental operations following the 14 November 2016 Kaikoura earthquakes and aftershocks. |
- | 1,167 | 1,167 |
Total Departmental Other Expenses |
- | 1,167 | 1,167 |
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. |
350 | 300 | 650 |
Total Departmental Capital Expenditure |
350 | 300 | 650 |
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. |
260,529 | 68,940 | 329,469 |
Total Non-Departmental Capital Expenditure |
260,529 | 68,940 | 329,469 |
Multi-Category Expenses and Capital Expenditure |
|||
Policy Advice and Related Outputs MCA (M22)The overarching purpose of this appropriation is to provide policy advice, other support to Ministers in discharging their policy decision-making and other portfolio responsibilities. |
6,985 | (9) | 6,976 |
Departmental Output Expenses |
|||
Ministerial ServicesThis category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities. |
839 | (1) | 838 |
Policy AdviceThis 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 relating to defence and national security. |
4,204 | (6) | 4,198 |
Policy SupportThis category 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. |
1,942 | (2) | 1,940 |
Total Multi-Category Expenses and Capital Expenditure |
6,985 | (9) | 6,976 |
Total Annual and Permanent Appropriations |
278,894 | 70,686 | 349,580 |
Capital Injection Authorisations#
| 2016/17 | |||
|---|---|---|---|
| Estimates Budget $000 |
Supplementary Estimates Budget $000 |
Total Budget $000 |
|
| Ministry of Defence - Capital Injection (M22) | - | - | - |
Supporting Information#
Part 1 - Vote as a Whole#
1.2 - Trends in the Vote
Summary of Financial Activity
| 2016/17 | |||||
|---|---|---|---|---|---|
| Supplementary Estimates | |||||
| Estimates $000 |
Departmental Transactions $000 |
Non-Departmental Transactions $000 |
Total Transactions $000 |
Total $000 |
|
Appropriations |
|||||
| Output Expenses | 11,030 | 288 | - | 288 | 11,318 |
| Benefits or Related Expenses | - | N/A | - | - | - |
| Borrowing Expenses | - | - | - | - | - |
| Other Expenses | - | 1,167 | - | 1,167 | 1,167 |
| Capital Expenditure | 260,879 | 300 | 68,940 | 69,240 | 330,119 |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | N/A | - | - |
| Multi-Category Expenses and Capital Expenditure (MCA) | |||||
| Output Expenses | 6,985 | (9) | - | (9) | 6,976 |
| Other Expenses | - | - | - | - | - |
| Capital Expenditure | - | N/A | - | - | - |
Total Appropriations |
278,894 | 1,746 | 68,940 | 70,686 | 349,580 |
Crown Revenue and Capital Receipts |
|||||
| Tax Revenue | - | N/A | - | - | - |
| Non-Tax Revenue | - | N/A | - | - | - |
| Capital Receipts | 260,529 | N/A | 68,940 | 68,940 | 329,469 |
Total Crown Revenue and Capital Receipts |
260,529 | N/A | 68,940 | 68,940 | 329,469 |
Part 2 - Details of Departmental Appropriations#
2.1 - Departmental Output Expenses#
Evaluation, Audit & Assessment of Performance (M22)
Scope of Appropriation
This appropriation is limited to the evaluations, and audits and assessments of the New Zealand Defence Force and the Ministry of Defence.
Reasons for Change in Appropriation
This appropriation decreased by $6,000 to $2.387 million for 2016/17 due to the reduction in the capital charge rate.
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#
| 2016/17 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 8,637 | 294 | 8,931 |
| Revenue from the Crown | 8,637 | (870) | 7,767 |
| Revenue from Others | - | 1,164 | 1,164 |
Reasons for Change in Appropriation#
This appropriation increased by $294,000 to $8.931 million for 2016/17 due to increased costs, funded by Revenue from Others, due to the commencement of the pre-acquisition stages of two acquisition projects, Littoral Operations Support Capability and Air Crew Training Capability, totalling $1.164 million . This is offset by reduced Revenue from the Crown, due to the transfer of $834,000 of some costs of implementing changes in the Capability Management Framework and its supporting processes and systems. An additional decrease of $36,000 is due to the reduction in the capital charge rate.
2.2 - Departmental Other Expenses#
Earthquake/Storm Damages (M22)#
Scope of Appropriation
This appropriation is limited to writing off, or making good damage to, departmental assets and re-establishing departmental operations following the 14 November 2016 Kaikoura earthquakes and aftershocks.
Expenses
| 2016/17 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 1,167 | 1,167 |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to achieve the recognition of costs incurred by the Ministry of Defence resulting from the November 2016 earthquake.
How Performance will be Assessed and End of Year Reporting Requirements
| 2016/17 | |||
|---|---|---|---|
| Performance Measures | Estimates Standard |
Supplementary Estimates Standard |
Total Standard |
|
Recognised expenses are within appropriation. |
N/A | Within appropriation | Within appropriation |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Ministry of Defence in its Annual Report.
Reasons for Change in Appropriation
This is a new appropriation to recognise the costs resulting from the November 2016 earthquake.
2.3 - Departmental Capital Expenditure and Capital Injections#
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
| 2016/17 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Forests/Agricultural | - | - | - |
| Land | - | - | - |
| Property, Plant and Equipment | 350 | 300 | 650 |
| Intangibles | - | - | - |
| Other | - | - | - |
Total Appropriation |
350 | 300 | 650 |
Reasons for Change in Appropriation
This appropriation increased by $300,000 to $650,000 for 2016/17 due to the requirement to replace assets damaged or destroyed in the November 2016 earthquake.
Capital Injections and Movements in Departmental Net Assets
Ministry of Defence
| Details of Net Asset Schedule | 2016/17 Main Estimates Projections $000 |
2016/17 Supplementary Estimates Projections $000 |
Explanation of Projected Movements in 2016/17 |
|---|---|---|---|
| Opening Balance | 3,416 | 3,416 | Supplementary Estimates opening balance reflects the audited results as at 30 June 2016. |
| Capital Injections | - | - | |
| Capital Withdrawals | - | - | |
| Surplus to be Retained (Deficit Incurred) | - | (1,167) | |
| Other Movements | - | - | |
Closing Balance |
3,416 | 2,249 |
Part 3 - Details of Non-Departmental Appropriations#
3.5 - 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
| 2016/17 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 260,529 | 68,940 | 329,469 |
Reasons for Change in Appropriation
This appropriation increased by $68.940 million to $329.469 million for 2016/17 due to recently approved projects managed by the Ministry entering the main production phase of the project, primarily Maritime Support Capability and Underwater Intelligence, Surveillance and Reconnaissance, with consequent increases in milestone payments for contracted production. This was offset by timing and foreign exchange changes affecting a number of projects, leaving a net increase of $68.940 million.
Part 4 - Details of Multi-Category Expenses and Capital Expenditure#
Multi-Category Expenses and Capital Expenditure#
Policy Advice and Related Outputs (M22)
Overarching Purpose Statement
The overarching purpose of this appropriation is to provide policy advice, other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
Scope of Appropriation
Departmental Output Expenses
Ministerial ServicesThis category 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 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 relating to defence and national security.
Policy Support
This category 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.
Expenses, Revenue and Capital Expenditure
| 2016/17 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
Total Appropriation |
6,985 | (9) | 6,976 |
Departmental Output Expenses |
|||
| Ministerial Services | 839 | (1) | 838 |
| Policy Advice | 4,204 | (6) | 4,198 |
| Policy Support | 1,942 | (2) | 1,940 |
Funding for Departmental Output Expenses |
|||
Revenue from the Crown |
6,985 | (9) | 6,976 |
| Ministerial Services | 839 | (1) | 838 |
| Policy Advice | 4,204 | (6) | 4,198 |
| Policy Support | 1,942 | (2) | 1,940 |
Reasons for Change in Appropriation
This appropriation decreased by $9,000 to $6.976 million in 2016/17 due to the reduction in the capital charge rate.