Formats and related files
Vote Defence#
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#
| 2017/18 | |||
|---|---|---|---|
| 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. |
2,384 | (437) | 1,947 |
|
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. |
11,008 | 10 | 11,018 |
|
Total Departmental Output Expenses |
13,392 | (427) | 12,965 |
|
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 | - | 350 |
|
Total Departmental Capital Expenditure |
350 | - | 350 |
|
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. |
265,585 | (25,585) | 240,000 |
|
Total Non-Departmental Capital Expenditure |
265,585 | (25,585) | 240,000 |
|
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. |
7,170 | 948 | 8,118 |
|
Departmental Output Expenses |
|||
|
Ministerial Services This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities. |
861 | 114 | 975 |
|
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. |
4,316 | 571 | 4,887 |
|
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. |
1,993 | 263 | 2,256 |
|
Total Multi-Category Expenses and Capital Expenditure |
7,170 | 948 | 8,118 |
|
Total Annual and Permanent Appropriations |
286,497 | (25,064) | 261,433 |
Capital Injection Authorisations#
| 2017/18 | |||
|---|---|---|---|
| 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
| 2017/18 | |||||
|---|---|---|---|---|---|
| Supplementary Estimates | |||||
| Estimates $000 |
Departmental Transactions $000 |
Non-Departmental Transactions $000 |
Total Transactions $000 |
Total $000 |
|
|
Appropriations |
|||||
| Output Expenses | 13,392 | (427) | - | (427) | 12,965 |
| Benefits or Related Expenses | - | N/A | - | - | - |
| Borrowing Expenses | - | - | - | - | - |
| Other Expenses | - | - | - | - | - |
| Capital Expenditure | 265,935 | - | (25,585) | (25,585) | 240,350 |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | N/A | - | - |
| Multi-Category Expenses and Capital Expenditure (MCA) | |||||
| Output Expenses | 7,170 | 948 | - | 948 | 8,118 |
| Other Expenses | - | - | - | - | - |
| Capital Expenditure | - | N/A | - | - | - |
|
Total Appropriations |
286,497 | 521 | (25,585) | (25,064) | 261,433 |
|
Crown Revenue and Capital Receipts |
|||||
| Tax Revenue | - | N/A | - | - | - |
| Non-Tax Revenue | - | N/A | - | - | - |
| Capital Receipts | 265,585 | N/A | (25,585) | (25,585) | 240,000 |
|
Total Crown Revenue and Capital Receipts |
265,585 | N/A | (25,585) | (25,585) | 240,000 |
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 $437,000 to $1.947 million for 2017/18 due to a:
- $347,000 reduction due to transfer of funding to other Ministry outputs to align resource requirements with demand and activities, and
- $90,000 reduction in the amount of the Ministry's indirect costs allocated to this output following a review of the Ministry's indirect allocation methodology.
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#
| 2017/18 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 11,008 | 10 | 11,018 |
| Revenue from the Crown | 10,908 | (911) | 9,997 |
| Revenue from Others | 100 | 921 | 1,021 |
Reasons for Change in Appropriation#
The $10,000 increase in this appropriation is due to a $921,000 increase in pre-acquisition project costs, funded by Revenue from Others.
This increase was partly offset by a $911,000 decrease in Revenue from the Crown, due to a:
- $900,000 transfer of funding to the Policy and Other outputs MCA reflecting the change in the Ministry's final structure following the implementation of the Enhancements to Defence Capability Development and Acquisition initiative, and
- $11,000 decrease resulting from changes in the Ministry's method of allocating indirect costs across outputs.
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
| 2017/18 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Forests/Agricultural | - | - | - |
| Land | - | - | - |
| Property, Plant and Equipment | 350 | (150) | 200 |
| Intangibles | - | 150 | 150 |
| Other | - | - | - |
|
Total Appropriation |
350 | - | 350 |
Capital Injections and Movements in Departmental Net Assets
Ministry of Defence
| Details of Net Asset Schedule | 2017/18 Main Estimates Projections $000 |
2017/18 Supplementary Estimates Projections $000 |
Explanation of Projected Movements in 2017/18 |
|---|---|---|---|
| Opening Balance | 2,284 | 2,353 | Supplementary Estimates opening balance reflects the audited results as at 30 June 2017. |
| Capital Injections | - | - | |
| Capital Withdrawals | - | - | |
| Surplus to be Retained (Deficit Incurred) | - | - | |
| Other Movements | - | - | |
|
Closing Balance |
2,284 | 2,353 |
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
| 2017/18 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 265,585 | (25,585) | 240,000 |
Reasons for Change in Appropriation
This appropriation decreased by $25.585 million to $240 million due to the rescheduling of project milestones following contract negotiations.
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
| 2017/18 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
|
Total Appropriation |
7,170 | 948 | 8,118 |
|
Departmental Output Expenses |
|||
| Ministerial Services | 861 | 114 | 975 |
| Policy Advice | 4,316 | 571 | 4,887 |
| Policy Support | 1,993 | 263 | 2,256 |
|
Funding for Departmental Output Expenses |
|||
|
Revenue from the Crown |
7,170 | 948 | 8,118 |
| Ministerial Services | 861 | 114 | 975 |
| Policy Advice | 4,316 | 571 | 4,887 |
| Policy Support | 1,993 | 263 | 2,256 |
Reasons for Change in Appropriation
This appropriation increased by $948,000 to $8.118 million due to:
- a $900,000 transfer of funding from the Management of Equipment Procurement appropriation reflecting the change in the Ministry's final structure following the implementation of the Enhancements to Defence Capability Development and Acquisition initiative, and
- a $101,000 increase resulting from changes in the Ministry's method of allocating indirect costs across outputs.
The increase was partly offset by a $53,000 reduction due to transfer of funding to other Ministry outputs to align the resource requirements with demand and activities.