Supplementary estimates of appropriations

Vote Education - Supplementary Estimates and supporting information 2010/11

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Education (M26), Minister for Tertiary Education (M68)

ADMINISTERING DEPARTMENT: Ministry of Education

MINISTER RESPONSIBLE FOR MINISTRY OF EDUCATION : Minister of Education

Details of Appropriations#

Details of Annual and Permanent Appropriations

Details of Annual and Permanent Appropriations - Education
  2010/11
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Interventions for Target Student Groups (M26)

Expenditure on policies and services focused on targeted student groups' or individuals' participation in education. This includes providing services to individuals with special education and developmental needs, providing additional funding for the support of students with special education needs, providing alternative education options, working with individuals and relevant stakeholders to resolve participation issues, and administering scholarships and awards for individuals.
237,396 4,998 242,394

School Property Portfolio Management (M26)

Expenditure on goods and services focused on providing the land, buildings and other facilities that make up the property portfolio of the State school sector. This includes purchasing and constructing new property, upgrading existing property to maintain the quality of the portfolio, disposing of surplus property, and managing teacher and caretaker housing.
1,364,193 (105,786) 1,258,407

Strategic Leadership in the Sector (M26)

Expenditure on policies and services focused on the Ministry's leadership role in the education sector. This includes enhancing the Ministry's coordination with other sector and Government agencies and forums, undertaking research and analysis, developing sector policy, monitoring the sector and select crown entities, and supporting the Minister of Education and Associate Minister to meet their obligations to Parliament.
31,476 2,605 34,081

Strategic Leadership in the Tertiary System (M68)

Expenditure on policies and services focused on the Ministry's leadership role in the tertiary system. This includes enhancing coordination with sector and Government agencies and forums, undertaking research and analysis, developing sector policy, monitoring the system, providing information on tertiary and international education services, representing the education sector internationally, supporting international students, and supporting Ministers to meet their obligations to Parliament.
13,890 2,402 16,292

Support and Resources for Education Providers (M26)

Expenditure on policies, regulations and services focused on the governance, management and operation of education providers. This includes managing regulations, administering the distribution of resources, delivering services that support school management - including industrial relations and education payroll, and working with providers to resolve underperformance.
85,669 (10,917) 74,752

Support and Resources for Teachers (M26)

Expenditure on policies and services focused on supporting the work and enhancing the capability of teachers. This includes providing curriculum and achievement standards, teaching resources, professional development, and administering scholarships and awards for existing teachers and principals.
59,528 3,522 63,050

Support and Resources for the Community (M26)

Expenditure on policies and programmes focused on the community's knowledge of and participation in the education system. This includes engaging with, providing information and support to, and delivering education courses to the community.
14,378 (813) 13,565

Total Departmental Output Expenses

1,806,530 (103,989) 1,702,541

Non-Departmental Output Expenses

     

Centres of Research Excellence (M68)

Purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.
33,488 - 33,488

Curriculum Support (M26)

Purchase of supplementary educational programmes for schools and communities to ensure wider access to these opportunities.
65,207 (1,372) 63,835

Education Research Initiatives (M26)

Purchase of research about teaching and learning in our educational institutions and independent research on education issues, policies and practices.
2,980 28 3,008

International Education Programmes (M68)

This appropriation is limited to delivery of services in respect to international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of managing and increasing the flow of international students and promoting international education linkages.
6,006 - 6,006

Managing the Government's Investment in the Tertiary Education Sector (M68)

This appropriation is limited to developing, implementing and managing an investment system that aligns planning, funding, monitoring and quality assurance of tertiary education in accordance with the provisions of the Education Act 1989 and other relevant legislation.
34,530 1,550 36,080

Ownership Monitoring of Tertiary Education Institutions (M68)

This appropriation is limited to monitoring and advisory services - including interventions - on the government's ownership interest in tertiary education institutions.
2,567 - 2,567

Professional Development and Support (M26)

Delivery of professional development and advisory support to staff, managers and parents in early childhood education services and in schools, to support effective teaching and enhance self-management.
91,385 - 91,385

Provision of Information and Advisory Services (M26)

Providing information on government education policy and programmes, general information, advisory programmes, and services to the public, community groups, industry and the education community.
22,342 205 22,547

Qualifications Support Structures (M26)

Provision for the New Zealand Qualifications Authority to oversee the setting of standards and standards based qualifications. It also includes standard-setting responsibility, recognition and review of qualifications, records management processes to support the Register of Quality Assured Qualifications and National Qualifications Framework, and participation in the promotion of the New Zealand National Qualifications system to key education and immigration partner countries.
6,049 13 6,062

Quality Assurance (M26)

Provision for the New Zealand Qualifications Authority to provide quality assurance services to support the New Zealand qualifications system that include ongoing development and management of quality assurance processes, monitoring and supporting providers at risk and the ongoing refinement and maintenance of the quality assurance framework.
4,370 - 4,370

School Transport (M26)

Purchase of services to transport eligible students to and from State and integrated schools. Also included are payments to schools that manage their own transport services and payments to parents/caregivers to compensate for the costs of taking children to school where other transport services are unsuitable or unavailable.
160,272 1,906 162,178

Secondary School Assessments (M26)

Provision for the New Zealand Qualifications Authority to oversee assessment for national secondary school qualifications including the National Certificate of Educational Achievement and Scholarship examinations, and the moderation of internal and external school assessments.
26,480 - 26,480

Service Academies (M26)

This appropriation is limited to providing military-focused programmes for disengaged or disengaging senior students in secondary schools.
1,440 - 1,440

Supporting Parenting (M26)

This appropriation is limited to purchasing delivery of specific programmes, and providing advice and support which enhance the role of parents/caregivers in the development of their children and promote the value of quality education experiences.
5,258 (1,490) 3,768

Tertiary Education and Training Policy Advice (M68)

This appropriation is limited to providing advice and support to Ministers on the tertiary sector and tertiary education and training issues.
5,637 (1,091) 4,546

Tertiary Education: Student Achievement Component (M68)

This appropriation is limited to teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.
1,827,487 7,381 1,834,868

Training for Designated Groups (M68)

Purchasing training linked to the National Qualifications Framework and the purchase of both on-job and off-job training places including delivery of fully or partially funded training places.
304,407 (35,900) 268,507

Total Non-Departmental Output Expenses

2,599,905 (28,770) 2,571,135

Benefits and Other Unrequited Expenses

     

Boarding Allowances and Bursaries (M26)

Provides an annual allowance to subsidise boarding fees and some travel costs of primary and secondary students who must live away from home to receive their education, either because of the distance of the nearest school or bus service from their home, or because certain approved subjects are not available at their local school. Bursaries are awarded according to the School Boarding Bursaries Regulations 1972.
8,069 - 8,069

Home Schooling Allowances (M26)

Provides an allowance payable to parents/caregivers of children in full-time correspondence programmes for primary and secondary education and to parents/caregivers of children receiving their primary and secondary education at home (where a certificate of exemption from enrolment has been approved under section 21 of the Education Act 1989).
5,550 - 5,550

International Student Scholarship Scheme (M68)

Scholarships available to international students wishing to study in New Zealand. Details of the criteria and selection process for the scheme are available from Education New Zealand.
2,200 - 2,200

Maori and Pacific Island Scholarships and Bursaries (M68)

Programmes to provide scholarships and bursaries to Maori and Pasifika students, according to established criteria. The programmes include Maori Education Trust and Polynesian and Pacific Island Education Foundation Scholarships, Ngarimu VC and 28th (Maori) Battalion Memorial Scholarship Fund and Maori and Polynesian Scholarships.
1,037 - 1,037

Mapihi Pounamu (M26)

Assistance to at-risk secondary school-aged students aged 14 and above, who face barriers to learning to ensure that they participate and achieve in education. The scheme is administered by the Ministry of Education.
3,250 - 3,250

National Study Awards (M26)

Provision for the costs of study awards, sabbaticals and fellowships for teachers, including replacement of the teacher while on study leave. Awards include those linked to teachers' collective agreements and approved prestigious awards. Priorities, criteria and selection processes are published by the Ministry of Education.
24,646 35 24,681

Queen Elizabeth II Study Awards (M68)

Awards for training assistance in a Commonwealth country provided to technicians under The Queen Elizabeth II Technicians' Study Award Act 1970.
100 - 100

Scholarships for Students to Attend Private Schools (M26)

Assistance to students from low-income families to attend private schools.
2,914 - 2,914

Study Abroad Awards (M68)

Awards granted to provide assistance to top scholars, researchers and teachers to undertake placements abroad and to participate in reciprocal education exchange arrangements with partner countries in selected areas of priority study, teaching and research. The criteria and selection process are available from Education New Zealand and AFS Intercultural Programmes New Zealand.
1,290 - 1,290

Targeted Education and Training Grants (M68)

Initiatives to provide living support for students at risk who need to move away from home to pursue alternative education options. The criteria and process for these grants are available from the Tertiary Education Commission.
40 - 40

Teacher Trainee Scholarships (M26)

Scholarships and allowances for students undertaking teacher training education, and loan support payments to teachers. The criteria and process for awarding scholarships are published by the Ministry of Education.
7,027 (3,000) 4,027

Tertiary Scholarships (M68)

This appropriation is limited to providing scholarships for tertiary students. The criteria and process for the awards are available from the Tertiary Education Commission.
16,915 (656) 16,259

Tertiary Teaching Awards (M68)

Awards to recognise outstanding tertiary education teachers as selected by a committee appointed by the Minister of Education and according to approved criteria and guidelines as published by the Tertiary Education Commission.
200 - 200

United World Scholarships (M26)

Scholarships for attendance at United World Colleges.
50 - 50

Total Benefits and Other Unrequited Expenses

73,288 (3,621) 69,667

Departmental Other Expenses

     

Recovery from February 2011 Christchurch Earthquake (M26)

This appropriation is limited to writing off, or making good damage to, departmental assets and re-establishing school operations in Christchurch following the 22 February 2011 earthquake.
- 14,720 14,720

Total Departmental Other Expenses

- 14,720 14,720

Non-Departmental Other Expenses

     

Adult and Community Education (M68)

This appropriation is limited to providing funding for delivery of community and adult education courses including literacy and English for speakers of other languages training through tertiary education institutions, schools and other agencies.
69,653 (582) 69,071

Early Childhood Education (M26)

Subsidising early childhood education services for children under six years of age from licensed and chartered early childhood education services (including centres and chartered home-based care networks) and from licence-exempt and certificated centres. Also included are several targeted funds.
1,263,908 121,486 1,385,394

Early Childhood Grants (M26)

Assistance is provided to early childhood education groups for developing accommodation including the establishment of new centres, or to increase the capacity or improve the standard of accommodation in existing centres. The criteria and selection process are published by the Ministry of Education.
13,783 (13,783) -

Integrated Schools Property (M26)

Provision for modernisation of existing property at integrated schools as part of a funding regime negotiated with the proprietors of integrated schools. Funding to assist in the expansion of the network is also included.
49,255 5,796 55,051

Interest Subsidy for Schools (M26)

Provides a subsidy on interest payments for borrowing by private and state integrated schools for approved property-related projects. Administration costs are also included.
440 (220) 220

New Zealand Teachers Council (M26)

Operating grant to assist the Teachers Council to carry out its leadership function.
178 - 178

Performance Based Research Fund (M68)

This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations.
250,000 - 250,000

Primary Education (M26)

Delivering the curriculum for Years 0 to 8 (new entrant to Form 2) to pupils of State, integrated, private schools and The Correspondence School. Provides roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes.
2,606,700 93,564 2,700,264

Remission of Fees (M26)

Payment to the New Zealand Qualifications Authority for student examination fees remitted in cases of hardship.
1,288 - 1,288

School Transport (M26)

Payments to teachers who, as Bus Controllers, assist in the provision of school transport assistance.
839 (22) 817

Schooling Improvement (M26)

School support and schooling improvement projects to improve the capability of schools and clusters and their responsiveness to the needs of their communities. These include iwi-strengthening education projects.
13,572 (4,309) 9,263

Secondary Education (M26)

Delivering the curriculum for Years 9 to 13 (Forms 3 to 7) to pupils of State, integrated, private schools and The Correspondence School. Provides roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes.
1,948,932 43,177 1,992,109

Special Needs Support (M26)

Providing additional resources to enable students with special education needs to participate in education including supplementary resources for special education needs, residential services, English for Speakers of Other Languages and alternative education programmes.
308,288 4,096 312,384

Support for Early Childhood Education Providers (M26)

This appropriation is limited to assisting early childhood education services and other bodies corporate in provision of child places for early childhood education. Priority will be given to providers in communities that have low levels of participation in early childhood education, to increase the number of child places and therefore availability of early childhood education. The criteria and selection process for each type of assistance are published by the Ministry of Education.
- 12,000 12,000

Support for International Students (M68)

This appropriation is limited to provision of additional support to international students and their families affected by the Christchurch earthquake, including grants toward costs not covered by ACC, insurance or other support and refunds of tuition and other fees.
- 2,000 2,000

Tertiary Education Grants and Other Funding (M68)

This appropriation is limited to providing contestable funding and miscellaneous funding to tertiary education organisations.
21,231 5,209 26,440

Tertiary Education Institutions Merger Support (M68)

This appropriation is limited to providing support toward the additional costs related to the merger of particular tertiary education institutions.
- 5,000 5,000

Tertiary Education Organisation Component - Capability Fund (M68)

This appropriation is limited to financial contributions to the cost of tertiary education organisations maintaining and enhancing their capability to deliver quality and relevance, and to develop their specific and distinctive roles in the network of tertiary education provision.
194,326 1,130 195,456

UNESCO (M26)

Annual membership contribution to United Nations Educational, Scientific and Cultural Organisation's international administration and a programme of activities of the National Commission including participation in regional and international activities.
2,083 - 2,083

University of Auckland Starpath Project (M68)

Funding under the Partnerships for Excellence programme to support the Starpath initiatives at the University of Auckland.
5,650 (4,440) 1,210

Total Non-Departmental Other Expenses

6,750,126 270,102 7,020,228

Departmental Capital Expenditure

     

Ministry of Education - Capital Expenditure PLA (M26)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Education, as authorised by section 24(1) of the Public Finance Act 1989.
712,592 (48,788) 663,804

Total Departmental Capital Expenditure

712,592 (48,788) 663,804

Non-Departmental Capital Expenditure

     

Property Disposal Incentives Scheme (M26)

Payments to schools of a share of the proceeds from the sale of their surplus school property assets.
5,397 (1,022) 4,375

Quality Reinvestment Programme (M68)

Support for Institutes of Technology and Polytechnics and Wananga through the Quality Reinvestment Programme to develop and maintain a high quality network of tertiary education provision aligned with the core roles of the sector as expressed in the Tertiary Education Strategy.
1,075 1,621 2,696

Redevelopment of Whitireia Community Polytechnic Porirua Campus (M68)

This appropriation is limited to redevelopment of the trades training facilities and the construction of a new Health Education and Social Services block at the Porirua campus of Whitireia Community Polytechnic.
1,080 (411) 669

School Support Project (M26)

Capital costs of implementing approved school support and schooling improvement projects (other than costs related to school property assets).
1,880 - 1,880

Schools Furniture and Equipment (M26)

Provides funds to schools for new furniture and equipment when capital works (including remodelling/upgrading of existing property and new school property) are approved.
17,610 5,961 23,571

Te Whare Wananga o Awanuiarangi Treaty Settlement (M68)

This appropriation is limited to the full and final settlement of Te Whare Wananga o Awanuiarangi in regards to the Waitangi Tribunal Claim (Wai 718) seeking Wananga capital establishment funding comparable to other tertiary education institutions and the repatriation of funds.
- 14,500 14,500

Total Non-Departmental Capital Expenditure

27,042 20,649 47,691

Total Annual and Permanent Appropriations

11,969,483 120,303 12,089,786

Details of Projected Movements in Departmental Net Assets#

Ministry of Education

Ministry of Education - Details of Projected Movements in Departmental Net Assets - Education
Details of Net Asset Schedule 2010/11
Main Estimates Projections
$000
2010/11
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2010/11
Opening Balance 11,196,408 10,147,631 Supplementary Estimates opening balance reflects the audited results as at 30 June 2010.
Capital Injections 254,029 208,451 Mainly owing to delays in the school property works programme, including defective buildings ($32 million) and other programmes ($21.890 million) partly offset by funding for implementation of ultra-fast broadband in schools ($8.481 million).
Capital Withdrawals (24,053) (27,263) Owing to converting capital funding to an operating stream to provide for leased accommodation rather than providing buildings.
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

11,426,384 10,328,819  

Information Supporting the Supplementary Estimates Vote Education#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Education (M26), Minister for Tertiary Education (M68)

ADMINISTERING DEPARTMENT: Ministry of Education

MINISTER RESPONSIBLE FOR MINISTRY OF EDUCATION : Minister of Education

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Summary of Financial Activity - Education
  2010/11
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 4,406,435 (103,989) (28,770) (132,759) 4,273,676
Benefits and Other Unrequited Expenses 73,288 N/A (3,621) (3,621) 69,667
Borrowing Expenses - - - - -
Other Expenses 6,750,126 14,720 270,102 284,822 7,034,948
Capital Expenditure 739,634 (48,788) 20,649 (28,139) 711,495
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -

Total Appropriations

11,969,483 (138,057) 258,360 120,303 12,089,786

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 69,570 N/A 13,131 13,131 82,701
Capital Receipts 1,080 N/A (411) (411) 669

Total Crown Revenue and Capital Receipts

70,650 N/A 12,720 12,720 83,370

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Interventions for Target Student Groups (M26)

Scope of Appropriation

Expenditure on policies and services focused on targeted student groups' or individuals' participation in education. This includes providing services to individuals with special education and developmental needs, providing additional funding for the support of students with special education needs, providing alternative education options, working with individuals and relevant stakeholders to resolve participation issues, and administering scholarships and awards for individuals.

Expenses and Revenue

Expenses and Revenue - Interventions for Target Student Groups (M26) - Education
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 237,396 4,998 242,394
Revenue from Crown 234,064 4,998 239,062
Revenue from Other 3,332 - 3,332

Reasons for Change in Appropriation

This appropriation increased by $4.998 million to $242.394 million for 2010/11 mainly owing to a combination of:

  • provision for supporting 1,000 additional students aged five to eight ($4 million increase)
  • funding settlement of staff collective agreements ($1.018 million increase)
  • training additional advisors on deaf children ($600,000 increase), and
  • changes to cost allocations between departmental output expense appropriations ($1.073 million decrease).

School Property Portfolio Management (M26)#

Scope of Appropriation#

Expenditure on goods and services focused on providing the land, buildings and other facilities that make up the property portfolio of the State school sector. This includes purchasing and constructing new property, upgrading existing property to maintain the quality of the portfolio, disposing of surplus property, and managing teacher and caretaker housing.

Expenses and Revenue#

Expenses and Revenue - School Property Portfolio Management (M26) - Education
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 1,364,193 (105,786) 1,258,407
Revenue from Crown 1,360,904 (110,182) 1,250,722
Revenue from Other 3,289 4,396 7,685

Reasons for Change in Appropriation#

This appropriation decreased by $105.786 million to $1,258.407 million for 2010/11 mainly owing to:

  • changes in capital charge, largely reflecting the impact of revaluation and impairment of defective buildings at 30 June 2010 ($77.627 million decrease)
  • delays in the school property rationalisation project with expenditure now expected to occur over the next several years ($22.959 million decrease)
  • a slower start than expected on a national survey of defective buildings, which is now due to finish at the end of next financial year ($11.501 million decrease)
  • provision for costs arising from the February 2011 earthquake ($4.396 million increase), and
  • changes to cost allocations between departmental output expense appropriations ($1.575 million increase).

Strategic Leadership in the Sector (M26)#

Scope of Appropriation#

Expenditure on policies and services focused on the Ministry's leadership role in the education sector. This includes enhancing the Ministry's coordination with other sector and Government agencies and forums, undertaking research and analysis, developing sector policy, monitoring the sector and select crown entities, and supporting the Minister of Education and Associate Minister to meet their obligations to Parliament.

Expenses and Revenue#

Expenses and Revenue - Strategic Leadership in the Sector (M26) - Education
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 31,476 2,605 34,081
Revenue from Crown 31,029 2,605 33,634
Revenue from Other 447 - 447

Reasons for Change in Appropriation#

This appropriation increased by $2.605 million to $34.081 million for 2010/11 mainly owing to changes to cost allocations between departmental output expense appropriations ($2.755 million increase).

Strategic Leadership in the Tertiary System (M68)#

Scope of Appropriation#

Expenditure on policies and services focused on the Ministry's leadership role in the tertiary system. This includes enhancing coordination with sector and Government agencies and forums, undertaking research and analysis, developing sector policy, monitoring the system, providing information on tertiary and international education services, representing the education sector internationally, supporting international students, and supporting Ministers to meet their obligations to Parliament.

Expenses and Revenue#

Expenses and Revenue - Strategic Leadership in the Tertiary System (M68) - Education
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 13,890 2,402 16,292
Revenue from Crown 13,882 2,402 16,284
Revenue from Other 8 - 8

Reasons for Change in Appropriation#

This appropriation increased by $2.402 million to $16.292 million for 2010/11 mainly owing to:

  • changes to cost allocations between departmental output expense appropriations ($1.494 million increase), and
  • transfer of policy advice activities from the Tertiary Education Commission to the Ministry of Education ($788,000 increase).

Support and Resources for Education Providers (M26)#

Scope of Appropriation#

Expenditure on policies, regulations and services focused on the governance, management and operation of education providers. This includes managing regulations, administering the distribution of resources, delivering services that support school management - including industrial relations and education payroll, and working with providers to resolve underperformance.

Expenses and Revenue#

Expenses and Revenue - Support and Resources for Education Providers (M26) - Education
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 85,669 (10,917) 74,752
Revenue from Crown 83,668 (10,917) 72,751
Revenue from Other 2,001 - 2,001

Reasons for Change in Appropriation#

This appropriation decreased by $10.917 million to $74.752 million for 2010/11 mainly owing to a combination of:

  • a transfer to 2011/12 as a result of delays in the schools' payroll project ($10.127 million decrease)
  • changes to cost allocations between departmental output expense appropriations ($2.912 million decrease)
  • a transfer to departmental output expense Support and Resources for Teachers to develop the Student Achievement Function ($1.063 million decrease)
  • a transfer to 2011/12 as a result of delays in the long-term work programme ($1.022 million decrease), and
  • programme management costs related to ultra-fast broadband in schools ($3.881 million increase).

Support and Resources for Teachers (M26)#

Scope of Appropriation#

Expenditure on policies and services focused on supporting the work and enhancing the capability of teachers. This includes providing curriculum and achievement standards, teaching resources, professional development, and administering scholarships and awards for existing teachers and principals.

Expenses and Revenue#

Expenses and Revenue - Support and Resources for Teachers (M26) - Education
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 59,528 3,522 63,050
Revenue from Crown 59,363 3,522 62,885
Revenue from Other 165 - 165

Reasons for Change in Appropriation#

This appropriation increased by $3.522 million to $63.050 million for 2010/11 owing to a combination of:

  • transfers from other appropriations to develop the Student Achievement Function in order to continue to raise student achievement by directly working with schools and kura ($6.140 million increase), and
  • changes to cost allocations between departmental output expense appropriations ($2.757 million decrease).

Support and Resources for the Community (M26)#

Scope of Appropriation#

Expenditure on policies and programmes focused on the community's knowledge of and participation in the education system. This includes engaging with, providing information and support to, and delivering education courses to the community.

Expenses and Revenue#

Expenses and Revenue - Support and Resources for the Community (M26) - Education
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 14,378 (813) 13,565
Revenue from Crown 14,228 (813) 13,415
Revenue from Other 150 - 150

Reasons for Change in Appropriation#

This appropriation decreased by $813,000 to $13.565 million for 2010/11 owing to a combination of:

  • a transfer to departmental output expense Support and Resources for Teachers for the Student Achievement Function ($2 million decrease)
  • changes to cost allocations between departmental output expense appropriations ($918,000 increase), and
  • a transfer of funding from the previous financial year after a delay in developing support material on the National Standards for parents, family and whanau ($250,000 increase).

Part 2.2 - Non-Departmental Output Expenses#

Curriculum Support (M26)#

Scope of Appropriation

Purchase of supplementary educational programmes for schools and communities to ensure wider access to these opportunities.

Reasons for Change in Appropriation

This appropriation decreased by $1.372 million to $63.835 million for 2010/11. This decrease is mainly owing to:

  • a transfer to departmental output expense Support and Resources for Teachers to develop the Student Achievement Function ($1.090 million decrease), and
  • a transfer to non-departmental other expense Special Needs Support for Alternative Education programmes ($765,000 decrease).

Education Research Initiatives (M26)#

Scope of Appropriation#

Purchase of research about teaching and learning in our educational institutions and independent research on education issues, policies and practices.

Reasons for Change in Appropriation#

This appropriation increased by $28,000 to $3.008 million for 2010/11 as a result of a revision to the level of funding allocated to departmental output expense Strategic Leadership in the Sector to support the longitudinal study Growing Up in New Zealand.

Managing the Government's Investment in the Tertiary Education Sector (M68)#

Scope of Appropriation#

This appropriation is limited to developing, implementing and managing an investment system that aligns planning, funding, monitoring and quality assurance of tertiary education in accordance with the provisions of the Education Act 1989 and other relevant legislation.

Reasons for Change in Appropriation#

This appropriation increased by $1.550 million to $36.080 million for 2010/11. This increase is owing to:

  • a transfer from 2009/10 for performance benchmarking of Tertiary Education Institutions as a consequence of delays in the programme ($1.250 million increase), and
  • provision for the detailed planning and initiation of event-driven information collection systems ($300,000 increase).

Provision of Information and Advisory Services (M26)#

Scope of Appropriation#

Providing information on government education policy and programmes, general information, advisory programmes, and services to the public, community groups, industry and the education community.

Reasons for Change in Appropriation#

This appropriation increased by $205,000 to $22.547 million for 2010/11 as a result of expanding provision for cochlear implant habilitation.

Qualifications Support Structures (M26)#

Scope of Appropriation#

Provision for the New Zealand Qualifications Authority to oversee the setting of standards and standards based qualifications. It also includes standard-setting responsibility, recognition and review of qualifications, records management processes to support the Register of Quality Assured Qualifications and National Qualifications Framework, and participation in the promotion of the New Zealand National Qualifications system to key education and immigration partner countries.

Reasons for Change in Appropriation#

This appropriation increased by $13,000 to $6.062 million for 2010/11 owing to a transfer from Vote Foreign Affairs and Trade for support for negotiation of international trade agreements.

School Transport (M26)#

Scope of Appropriation#

Purchase of services to transport eligible students to and from State and integrated schools. Also included are payments to schools that manage their own transport services and payments to parents/caregivers to compensate for the costs of taking children to school where other transport services are unsuitable or unavailable.

Reasons for Change in Appropriation#

This appropriation increased by $1.906 million to $162.178 million for 2010/11. This increase relates to:

  • provisions for increased road user charges ($993,000 increase)
  • provision for additional transport costs arising from the Canterbury earthquakes ($890,000 increase)
  • higher costs for index-based adjustments ($426,000 increase), and
  • other adjustments, including the impact of lower than expected primary school rolls and lower levels of other claims ($403,000 decrease).

Supporting Parenting (M26)#

Scope of Appropriation#

This appropriation is limited to purchasing delivery of specific programmes, and providing advice and support which enhance the role of parents/caregivers in the development of their children and promote the value of quality education experiences.

Reasons for Change in Appropriation#

This appropriation decreased by $1.490 million to $3.768 million for 2010/11 mainly as a result of delays in the Engaging Priority Families programme and a consequential transfer of funds to outyears ($1.400 million decrease).

Tertiary Education and Training Policy Advice (M68)#

Scope of Appropriation#

This appropriation is limited to providing advice and support to Ministers on the tertiary sector and tertiary education and training issues.

Reasons for Change in Appropriation#

This appropriation decreased by $1.091 million to $4.546 million for 2010/11 mainly owing to a transfer to departmental output expense Strategic Leadership in the Tertiary System after the Tertiary Education Commission's policy function was transferred to the Ministry of Education.

Tertiary Education: Student Achievement Component (M68)#

Scope of Appropriation#

This appropriation is limited to teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.

Reasons for Change in Appropriation#

This appropriation increased by $7.381 million to $1,834.868 million for 2010/11 to address demand pressures for additional undergraduate university places.

Training for Designated Groups (M68)#

Scope of Appropriation#

Purchasing training linked to the National Qualifications Framework and the purchase of both on-job and off-job training places including delivery of fully or partially funded training places.

Reasons for Change in Appropriation#

This appropriation decreased by $35.900 million to $268.507 million for 2010/11 owing to a reprioritisation of the Industry Training Fund to fund additional undergraduate university places.

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#

National Study Awards (M26)

Scope of Appropriation

Provision for the costs of study awards, sabbaticals and fellowships for teachers, including replacement of the teacher while on study leave. Awards include those linked to teachers' collective agreements and approved prestigious awards. Priorities, criteria and selection processes are published by the Ministry of Education.

Reasons for Change in Appropriation

This appropriation increased by $35,000 to $24.681 million for 2010/11 owing to a provision for settlement of teachers and principals' collective agreements.

Teacher Trainee Scholarships (M26)#

Scope of Appropriation#

Scholarships and allowances for students undertaking teacher training education, and loan support payments to teachers. The criteria and process for awarding scholarships are published by the Ministry of Education.

Reasons for Change in Appropriation#

This appropriation decreased by $3 million to $4.027 million for 2010/11 owing to a transfer to Vote Social Development to enable StudyLink to continue to make scholarship payments to recipients and providers.

Tertiary Scholarships (M68)#

Scope of Appropriation#

This appropriation is limited to providing scholarships for tertiary students. The criteria and process for the awards are available from the Tertiary Education Commission.

Reasons for Change in Appropriation#

This appropriation decreased by $656,000 to $16.259 million for 2010/11 owing to a transfer to non-departmental other expense Tertiary Education Grants and Other Funding for Adult Literacy Educator Grants.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.1 - Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.1 Departmental Other Expenses - Education
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: The Ministry is capable, efficient and responsive to achieve education priorities.
Impacts:
  • All children, including those with disabilities and special education needs, achieve their full potential through education.
  • Improved efficiency in the way the Ministry operates.
  • Improved cost-effectiveness of the Government's expenditure in education.
Recovery from February 2011 Christchurch Earthquake

Recovery from February 2011 Christchurch Earthquake (M26)

Scope of Appropriation

This appropriation is limited to writing off, or making good damage to, departmental assets and re-establishing school operations in Christchurch following the 22 February 2011 earthquake.

Expenses

Expenses - Recovery from February 2011 Christchurch Earthquake (M26) - Education
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 14,720 14,720

Reasons for Change in Appropriation

This new appropriaton of $14.720 million provides for making good earthquake damage to schools and writing off assets badly damaged or destroyed in the earthquake.

Expected Results

Expected Results - Recovery from February 2011 Christchurch Earthquake (M26) - Education
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Estimated value of emergency repairs - including temporary sewerage solutions ($000) - 4,720 4,720
Estimated value of assets to be written off ($000) - 10,000 10,000

Part 5.2 - Non-Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Education
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: Relevant and efficient tertiary education provision that meets student and labour market needs.
Impacts:
  • Improved efficiency within the tertiary funding system and student support system.
  • Increased numbers of students completing tertiary qualifications at higher levels.
Support for International Students
Outcome: Increasing opportunity for children to participate in quality early childhood education.
Impacts:
  • The proportion of Maori, Pasifika and children from low socio-economic areas attending high quality early childhood education rising to levels consistent with the general population.
Support for Early Childhood Education Providers

Adult and Community Education (M68)#

Scope of Appropriation

This appropriation is limited to providing funding for delivery of community and adult education courses including literacy and English for speakers of other languages training through tertiary education institutions, schools and other agencies.

Reasons for Change in Appropriation

This appropriation decreased by $582,000 to $69.071 million for 2010/11. The decrease in funding is mainly owing to a transfer to 2011/12 of funding for the Workplace Literacy Fund ($481,000).

Early Childhood Education (M26)#

Scope of Appropriation#

Subsidising early childhood education services for children under six years of age from licensed and chartered early childhood education services (including centres and chartered home-based care networks) and from licence-exempt and certificated centres. Also included are several targeted funds.

Reasons for Change in Appropriation#

This appropriation increased by $121.486 million to $1,385.394 million for 2010/11. The increase in funding is mainly owing to a combination of:

  • increased average weekly hours attended and a higher proportion of hours being claimed by children receiving 20 Hours Early Childhood Education ($91.696 million increase)
  • higher than expected participation and an increase in average weekly hours attended by under-two-year-olds ($24.970 million increase)
  • increased average weekly hours attended by over-two-year-olds ($6.976 million increase)
  • provision for settlement of the kindergarten teachers collective agreement ($2.841 million increase), and
  • a transfer of funding to create the new non-departmental other expense Support for Early Childhood Education Providers ($6.067 million decrease).

Early Childhood Grants (M26)#

Scope of Appropriation#

Assistance is provided to early childhood education groups for developing accommodation including the establishment of new centres, or to increase the capacity or improve the standard of accommodation in existing centres. The criteria and selection process are published by the Ministry of Education.

Reasons for Change in Appropriation#

This appropriation of $13.783 million was transferred entirely to the new non-departmental other expense Support for Early Childhood Education Providers.

Integrated Schools Property (M26)#

Scope of Appropriation#

Provision for modernisation of existing property at integrated schools as part of a funding regime negotiated with the proprietors of integrated schools. Funding to assist in the expansion of the network is also included.

Reasons for Change in Appropriation#

This appropriation increased by $5.796 million to $55.051 million for 2010/11. The increase is mainly owing to additional funding for the School Network Upgrade Project ($5.350 million).

Macro Economic Policy Advice & Management MCOA (M31)#

Scope of Appropriation#

Economic and Tax Forecasting
This output class is limited to the preparation of economic and tax forecasts, and monitoring of and reporting on economic and tax conditions.
Fiscal Management
This output class is limited to the development of the Budget strategy and advice, and activities of the annual Budget process.
Fiscal Reporting
This output class is limited to preparing fiscal forecasts, monitoring of and reporting on fiscal conditions, preparing the financial statements of the Government, providing advice on the application and development of generally accepted accounting practice as it applies to the Crown, and monitoring the adequacy of departmental financial management controls.
Management of Crown Lending and Crown Bank Accounts
This output class is limited to the management of Crown lending and Crown and Departmental bank accounts.
Policy Advice: Fiscal and Macroeconomic
This output class is limited to the provision of fiscal and macroeconomic policy advice.

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes all contribute to the outcome of a stable and sustainable macroeconomic environment in New Zealand.

Expenses and Revenue#

Expenses and Revenue - Macro Economic Policy Advice & Management MCOA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000

Total Appropriation

14,910 (1,060) 13,850
Economic and Tax Forecasting 2,691 (210) 2,481
Fiscal Management 3,290 (962) 2,328
Fiscal Reporting 3,588 (506) 3,082
Management of Crown Lending and Crown Bank Accounts 540 12 552
Policy Advice: Fiscal and Macroeconomic 4,801 606 5,407

Revenue from Crown

14,674 (1,043) 13,631
Economic and Tax Forecasting 2,641 (201) 2,440
Fiscal Management 3,240 (943) 2,297
Fiscal Reporting 3,530 (494) 3,036
Management of Crown Lending and Crown Bank Accounts 534 9 543
Policy Advice: Fiscal and Macroeconomic 4,729 586 5,315

Revenue from Other

236 (17) 219
Economic and Tax Forecasting 50 (9) 41
Fiscal Management 50 (19) 31
Fiscal Reporting 58 (12) 46
Management of Crown Lending and Crown Bank Accounts 6 3 9
Policy Advice: Fiscal and Macroeconomic 72 20 92

Reasons for Change in Appropriation#

This multi-class output expense appropriation has decreased due to:

  • efficiency savings of $274,000 in 2010/11 to transfer into 2011/12 to address emerging cost pressures for crown balance sheet work, and
  • a reclassification of current activity. The reduction in Fiscal Management recognises a reclassification of Vote Analyst work during the Budget process from Fiscal Management into the other Policy Advice output classes. Efficiencies have also been made in the Budget production process. The increase in Policy Advice: Fiscal and Macroeconomic relates to Crown Balance Sheet advice which, given its advisory nature and focus on ownership mix was reclassified from the Management of Liabilities, Claims Against the Crown and Crown Properties output class.

State Sector and Economic Performance Policy Advice and Management MCOA (M31)#

Scope of Appropriation#

Crown Deposit Guarantee Scheme
This output class is limited to the implementation and operation of the Crown's deposit guarantee scheme excluding expenses incurred in connection with administering claims under a guarantee or indemnity given under the scheme.
Crown Wholesale Guarantee Facility
This output class is limited to the implementation and operation of the Crown's wholesale guarantee facility.
Management of Liabilities, Claims Against the Crown and Crown Properties
Management of contractual or Treaty of Waitangi related claims against the Crown and the management of New Zealand House, London.
New Zealand Export Credit Office
Implementation of the Government's Export Credit Guarantees policy and operation of the New Zealand Export Credit Office.
Policy Advice: Economic Performance
Policy advice on the Government's economic strategy and policy settings and their effect on New Zealand's economic growth.
Policy Advice: State Sector Performance
Policy advice on the effective and efficient use of state resources including improved decision-making and performance management systems and the efficient management of Crown assets.

Explanation for Use of Multi-Class Output Expense Appropriation#

These output classes all contribute to the outcomes of improving New Zealand's overall economic performance and improving state sector performance.

Expenses and Revenue#

Expenses and Revenue - State Sector and Economic Performance Policy Advice and Management MCOA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000

Total Appropriation

34,271 (870) 33,401
Crown Deposit Guarantee Scheme - - -
Crown Wholesale Guarantee Facility - - -
Management of Liabilities, Claims Against the Crown and Crown Properties 1,922 (1,269) 653
New Zealand Export Credit Office 3,631 (376) 3,255
Policy Advice: Economic Performance 14,875 970 15,845
Policy Advice: State Sector Performance 13,843 (195) 13,648

Revenue from Crown

33,664 (1,285) 32,379
Crown Deposit Guarantee Scheme - - -
Crown Wholesale Guarantee Facility - - -
Management of Liabilities, Claims Against the Crown and Crown Properties 1,898 (1,253) 645
New Zealand Export Credit Office 3,580 (408) 3,172
Policy Advice: Economic Performance 14,623 959 15,582
Policy Advice: State Sector Performance 13,563 (583) 12,980

Revenue from Other

607 415 1,022
Crown Deposit Guarantee Scheme - - -
Crown Wholesale Guarantee Facility - - -
Management of Liabilities, Claims Against the Crown and Crown Properties 24 (16) 8
New Zealand Export Credit Office 51 32 83
Policy Advice: Economic Performance 252 11 263
Policy Advice: State Sector Performance 280 388 668

Reasons for Change in Appropriation#

This multi-class expense appropriation has decreased overall due to range of decreases greater than the increases during the year.

Increases are due to:

  • new funding of $440,000 was provided in Policy Advice: State Sector Performance for Phase two of the Better Administration and Support Services project. This was funded through recoveries from other agencies, and
  • a reallocation of resources to reflect Ministerial priorities in 2010/11 output plan. Policy Advice: Economic Performance was given a higher level of resource to deliver on additional work eg, Savings Working Group, and other priority areas including Regulation, Tax Strategy and Highly Skilled Workforce. State Sector Performance was increased to fund priority projects and fiscal risks around State sector reform work.

Decreases are due to:

  • identified efficiency savings of $940,000 in 2010/11 to transfer into 2011/12 to address emerging cost pressures in crown balance sheet work
  • funds being returned to the Crown from New Zealand Export Credit Office. This resulted from slower than expected deal flow giving rise to less third-party costs, such as legal and surety bond fees associated with these deals, and
  • reclassification of activities. The Crown Balance Sheet work on Vote Finance entities was previously funded from Management of Liabilities, Claims Against the Crown and Crown Properties. This work was reclassified into Policy Advice: Fiscal and Macroeconomic.

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Funding of the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010. Inquiries into Productivity - Related Matters
  Research into and Promotion of Productivity - Related Matters

2025 Productivity Taskforce (M31)#

Scope of Appropriation

This appropriation is limited to the fees and expenses of members of the Taskforce appointed to carry forward work on the productivity gap with Australia, and the fees and expenses for any other advice that the Taskforce may commission.

Expenses

Expenses - 2025 Productivity Taskforce (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 81 67 148

Reasons for Change in Appropriation

The outstanding balance of the appropriation in 2009/10 was carried forward to 2010/11 to address the ongoing work programme of the Taskforce.

Output Performance Measures and Standards

Output Performance Measures and Standards - 2025 Productivity Taskforce (M31) - Finance
  2010/11
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Second taskforce report providing further analysis and recommendations and assessing progress delivered by 31 October 2010. Achieved Achieved Achieved

Enquiries, Reviews and Research Into Productivity Matters (M31)#

Scope of Appropriation#

This appropriation is limited to enquiries, reviews and research into productivity related activities.

Expenses#

Expenses - Enquiries, Reviews and Research Into Productivity Matters (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 655 (655) -

Reasons for Change in Appropriation#

A new Multi-class Output Appropriation (MCOA) has been established in Vote Finance for the activities of the New Zealand Productivity Commission. This will allow for a higher level of oversight and best reflects the segregation of outputs being purchased. The funding from this original appropriation has been transferred to the new MCOA and the output performance measures and standards have been reported there.

Scope of Appropriation#

Inquiries into Productivity - Related Matters
This output class is limited to inquiries undertaken by the New Zealand Productivity Commission in accordance with the New Zealand Productivity Commission Act 2010.
Research into and Promotion of Productivity - Related Matters
This output class is limited to the New Zealand Productivity Commission undertaking research into and promoting public understanding of productivity related matters in accordance with the New Zealand Productivity Commission Act 2010.

Explanation for Use of Multi-Class Output Expense Appropriation#

The two output classes are limited to inquiries, research and promotion of productivity related matters.

Expenses#

Expenses - Inquiries and Research into Productivity Related Matters MCOA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 1,210 1,210
Inquiries into Productivity - Related Matters - 1,160 1,160
Research into and Promotion of Productivity - Related Matters - 50 50

Reasons for Change in Appropriation#

This new Multi-class Output Appropriation (MCOA) has been established in Vote Finance for the activities of the New Zealand Productivity Commission. This will allow for a higher level of oversight and best reflects the segregation of outputs that the Minister is purchasing. Funding has been transferred in 2010/11 to these output classes from the original Non-Departmental Output class (Enquiries, Reviews and Research Into Productivity Matters) and from the unspent portion of the Departmental Output Class (Establishment of the New Zealand Productivity Commission).

Output Performance Measures and Standards#

Output Performance Measures and Standards - Inquiries and Research into Productivity Related Matters MCOA (M31) - Finance
  2010/11
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Work on the first inquiry referred to the Commission is underway within one month of the Commission becoming operational on 1 April 2011. N/A Achieved Achieved

Conditions on Use of Appropriation#

New Zealand Productivity Commission will complete a Statement of Intent for the period 1 April 2011 to 30 June 2012 by 30 June 2011. This document will set out the measures and standards against which the New Zealand Productivity Commission will be assessed during the period to 30 June 2012.

Management of New Zealand House, London (M31)#

Scope of Appropriation#

This appropriation is limited to the property management services in respect of New Zealand House, London.

Expenses#

Expenses - Management of New Zealand House, London (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 1,000 (400) 600

Reasons for Change in Appropriation#

The appropriation has been reduced by $400,000, partially due to the change in exchange rates during the year and has been returned to the Crown. Rental revenue has been revised down by the same amount, making this change fiscally neutral.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of New Zealand House, London (M31) - Finance
  2010/11
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Optimise New Zealand House rental revenue. Achieved Achieved Achieved
Occupancy rates maximised. Achieved Achieved Achieved
Maintain the property to support the achievement of revenue and occupancy objectives. Achieved Achieved Achieved

Management of the Crown's Obligations for Geothermal Wells (M31)#

Scope of Appropriation#

This appropriation is limited to the management and maintenance relating to geothermal wells and associated sites and structures for which the Crown accepts responsibility.

Expenses#

Expenses - Management of the Crown's Obligations for Geothermal Wells (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 151 60 211

Reasons for Change in Appropriation#

An expense transfer from 2009/10 was made to provide funding for remedial work on redundant geothermal assets at Wairakei as this work was not completed during that year.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of the Crown's Obligations for Geothermal Wells (M31) - Finance
  2010/11
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Monitor and maintain wells through regular inspections and completion of standard maintenance actions. Achieved Achieved Achieved

Management of the New Zealand Superannuation Fund (M31)#

Scope of Appropriation#

This appropriation is limited to managing the New Zealand Superannuation Fund on behalf of the Crown.

Expenses#

Expenses - Management of the New Zealand Superannuation Fund (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 516 (166) 350

Reasons for Change in Appropriation#

The payments expected to be made to Guardians of the New Zealand Superannuation Fund are now forecast to be $166,000 lower than appropriation and are being returned to the Crown.

Output Performance Measures and Standards#

Output Performance Measures and Standards - Management of the New Zealand Superannuation Fund (M31) - Finance
  2010/11
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
The Guardians of New Zealand Superannuation manage and administer the Fund in accordance with their Statement of Intent. Achieved Achieved Achieved

Summary of Service Providers for Non-Departmental Outputs#

Summary of Service Providers - Summary of Service Providers for NonDepartmental Outputs - Finance
  2010/11    
Provider Estimates
$000
Supplementary
Estimates
$000
Total
$000
Reporting
Mechanism
Expiry of
Resourcing
Commitment

Independent Crown Entity

         
New Zealand Productivity Commission
  • Inquiries and Research into Productivity Related Matters MCOA (funding transfer)
 
 
-
 
 
1210
 
 
1,210
 
Providers annual report (exempted for 30 June 2011)
 
 
Ongoing

Funding has been transferred in 2010/11 to Inquiries and Research into Productivity Related Matters MCOA from the original Non-Departmental Output class (Enquiries, Reviews and Research Into Productivity Matters) and from the unspent portion of the Departmental Output Class (Establishment of the New Zealand Productivity Commission).

The above table summarises funding to be allocated through Vote Finance to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.

Part 4 - Details for Borrowing Expenses#

Part 4.2 - Non-Departmental Borrowing Expenses#

Debt Servicing PLA (M31)

Scope of Appropriation

This appropriation is limited to the payment of borrowing expenses for the Crown's New Zealand-dollar and foreign-currency debt, authorised by section 60(1)b of the Public Finance Act 1989.

Expenses

Expenses - Debt Servicing PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 3,058,421 (26,683) 3,031,738

Reasons for Change in Appropriation

The change reflects interest rate movements and the amount of debt outstanding.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: A high performing state sector that supports New Zealand's international competitiveness.
Impact: The Crown's balance sheet is managed efficiently and effectively.
Additional Payments to Facilitate Full Payout under the Crown Retail Deposit Guarantee Scheme
Costs in respect of Guarantees and Indemnities PLA
  Earthquake Commission
  Earthquake Commission - Land Insurance Payments
  Impairment of Crown's interest in AMI
  Impairment of Loans to Taitokerau Forest Limited
  National Provident Fund - Crown liability for Scheme Deficiency PLA
  Payment in Respect of New Zealand Export Credit Office Guarantee and Indemnities PLA

Additional Payments to Facilitate Full Payout under the Crown Retail Deposit Guarantee Scheme. (M31)

Scope of Appropriation

This appropriation is limited to payments under the Crown Retail Deposit Guarantee Scheme additional to those covered by the PLA required to facilitate full payout. This includes payments to ineligible investors in entities which default under the Deed of Guarantee up to 12 October 2010 plus a contingency to ensure that payments to the Trustee cover the full costs of paying out all debenture holders.

Expenses

Expenses - Additional Payments to Facilitate Full Payout under the Crown Retail Deposit Guarantee Scheme. (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 150,000 150,000

Reasons for Change in Appropriation

This appropriation was utilised to provide contingency funding to the Trustee of South Canterbury Finance. This has subsequently been fully repaid back to the Crown by the Trustee.

Expected Results

Expected Results - Additional Payments to Facilitate Full Payout under the Crown Retail Deposit Guarantee Scheme. (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Timely payout to Trustee of South Canterbury Finance. N/A Achieved Achieved
Recovery within agreed timeframes from Trustee. N/A Achieved Achieved

Costs in respect of Guarantees and Indemnities PLA (M31)#

Scope of Appropriation#

This appropriation is limited to payments by the Crown under a guarantee or indemnity given under section 65ZD of the Public Finance Act 1989, as authorised by section 65ZG of that Act.

Expenses#

Expenses - Costs in respect of Guarantees and Indemnities PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 1,547,116 1,547,116

Reasons for Change in Appropriation#

This appropriation is required for the gross payment of guaranteed depositors of defaulting entities, guaranteed under the Crown Retail Deposit Guarantee Scheme. On payment, the Crown assumes the rights of the depositors and recognises the recoveries from these entities as non-tax revenue. In addition this appropriation also reflects adjustments to the expected recoveries from the nine entities which have defaulted under the scheme.

Expected Results#

Expected Results - Costs in respect of Guarantees and Indemnities PLA (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
The Crown's liability to guaranteed depositors of defaulting entities is correctly recorded in the Financial Statements of the Government. Unqualified Audit Opinion Unqualified Audit Opinion Unqualified Audit Opinion
Payments are made in accordance with the requirements of the Public Finance Act. Unqualified Audit Opinion Unqualified Audit Opinion Unqualified Audit Opinion

Earthquake Commission (M31)#

Scope of Appropriation#

This appropriation is limited to the remediation of residential land that was damaged in the 2010 Canterbury earthquake to a higher standard than required by the Earthquake Commission Act.

Expenses#

Expenses - Earthquake Commission (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 141,100 141,100

Reasons for Change in Appropriation#

This is a new appropriation in 2010/11 of $141.100 million approved as a result of the Canterbury Earthquake on 4 September 2010 to provide funding to Canterbury local councils for remedial work.

Expected Results#

Expected Results - Earthquake Commission (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Negotiate an MOU with Councils. N/A Achieved Achieved
Complete a Concept Design Report that details the engineering requirements and informs the work programme and spend. N/A Achieved Achieved

Earthquake Commission - Land Insurance Payments (M31)#

Scope of Appropriation#

This appropriation is limited to insurance payments to the owners of damaged land in the Canterbury region where the cost of land remediation is greater than the insured value of the land.

Expenses#

Expenses - Earthquake Commission Land Insurance Payments (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 5,000 5,000

Reasons for Change in Appropriation#

This is a new appropriation in 2010/11 of $5 million approved as the result of the Canterbury earthquake on 4 September 2010.

Expected Results#

Expected Results - Earthquake Commission Land Insurance Payments (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Timely advice provided on properties. N/A Achieved Achieved

Government Superannuation Fund Authority - Crown's Share of Expenses PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the Crown's share of the expenses of the Government Superannuation Fund Authority relating to the management and administration of the Government Superannuation Fund and the schemes, authorised by sections 15E and 95 of the Government Superannuation Act 1956.

Expenses#

Expenses - Government Superannuation Fund Authority Crown's Share of Expenses PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 23,760 1,000 24,760

Reasons for Change in Appropriation#

This increase is a result of changes in custodial, investment and administration costs due to an increase in assets under fund management.

Expected Results#

Expected Results - Government Superannuation Fund Authority Crown's Share of Expenses PLA (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
The Crown's share of management and administration fees is paid in accordance with the Government Superannuation Fund's determination and certification of the Government Actuary. Achieved Achieved Achieved

Government Superannuation Fund Unfunded Liability PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability to the Government Superannuation Fund and the specified superannuation contribution withholding tax on employer contributions by the Crown, authorised by section 95AA of the Government Superannuation Act 1956.

Expenses#

Expenses - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 684,117 (54,989) 629,128

Reasons for Change in Appropriation#

This decrease reflects marginal changes to forecast assumptions, other than actuarial losses and gains.

Expected Results#

Expected Results - Government Superannuation Fund Unfunded Liability PLA (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Recognition of the Crown's GSF obligations in the Financial Statements of the Government. Unqualified audit opinion Unqualified audit opinion Unqualified audit opinion
Tax payments are accurate and paid within deadlines. Met Met Met

Impairment of Crown's interest in AMI (M31)#

Scope of Appropriation#

This appropriation is limited to the impairment of equity investment in AMI.

Expenses#

Expenses - Impairment of Crown's interest in AMI (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 500,000 500,000

Reasons for Change in Appropriation#

This is a new appropriation of $500 million for potential impairment of the Crown's investment in AMI. The fair value of AMI is still uncertain, subject to the final level of claims received for the Christchurch earthquake. The appropriation is set at the maximum exposure to the Crown being the total amount of equity invested.

Expected Results#

Expected Results - Impairment of Crown's interest in AMI (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Impairment of Crown's investment in AMI correctly recorded in the Financial Statements of the Government. N/A Achieved Achieved

Impairment of Loans to Taitokerau Forest Limited (M31)#

Scope of Appropriation#

This appropriation is limited to the expense incurred on the impairment of new loans to Taitokerau Forests Limited.

Expenses#

Expenses - Impairment of Loans to Taitokerau Forest Limited (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 800 700 1,500

Reasons for Change in Appropriation#

The timing of drawdowns of Taitokerau Forests Limited loan facility is uncertain. In 2009/10, the actual drawdown of the loan was $700,000 less than appropriated for that year resulting in a carry forward of this amount into 2010/11. The impairment takes place when the loan is drawn down.

Expected Results#

Expected Results - Impairment of Loans to Taitokerau Forest Limited (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Impairment of loans to Taitokerau Forest Limited correctly recorded in the Financial Statements of the Government. Achieved Achieved Achieved

National Provident Fund - Crown liability for Scheme Deficiency PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the Crown's liability for deficiency in the accounts of National Provident Fund schemes established pursuant to section 38A(6) of the National Provident Fund Act 1950, authorised by section 72 of the National Provident Fund Restructuring Act 1990.

Expenses#

Expenses - National Provident Fund Crown liability for Scheme Deficiency PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 16 16

Reasons for Change in Appropriation#

The Crown is liable for deficiencies in specified superannuation schemes of the National Provident Fund. The current forecast for the year is $16,000.

Expected Results#

Expected Results - National Provident Fund Crown liability for Scheme Deficiency PLA (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
The Crown's liability for benefits payable to members of National Provident Fund schemes is correctly recorded in the Financial Statements of the Government. Unqualified audit opinion Unqualified audit opinion Unqualified audit opinion

National Provident Fund Schemes - Liability Under Crown Guarantee PLA (M31)#

Scope of Appropriation#

This appropriation is limited to the net increase (excluding actuarial gains and losses) in the Crown's liability for benefits payable to members of National Provident Fund schemes under the Crown guarantee in section 60 of the National Provident Fund Restructuring Act 1990. This appropriation is authorised by section 66 of the National Provident Fund Restructuring Act 1990.

Expenses#

Expenses - National Provident Fund Schemes Liability Under Crown Guarantee PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 60,000 (1,300) 58,700

Reasons for Change in Appropriation#

The decrease in the appropriation relates to the GST rate increase during the year which was separately appropriated in the 2010/11 Estimates but not deducted from the liability.

New Zealand House, London (M31)#

Scope of Appropriation#

This appropriation is limited to the operational costs of New Zealand House, London.

Expenses#

Expenses - New Zealand House, London (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 16,200 (1,500) 14,700

Reasons for Change in Appropriation#

The operational costs of New Zealand House have been revised down by $1.500 million primarily due to the fall in the exchange rate and occupancy rates during the year. Rental revenue has been revised down by the same amount, making this change fiscally neutral.

Expected Results#

Expected Results - New Zealand House, London (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Net rental from commercial space is optimised. Achieved Achieved Achieved
New Zealand House is maintained to provide office accommodation of a suitable standard for New Zealand Government entities in London. Achieved Achieved Achieved

Payment in respect of Export Credit Office Guarantees and Indemnities PLA (M31)#

Scope of Appropriation#

This appropriation is limited to payments by the Crown under export credit guarantees or indemnities given under Section 65ZD of the Public Finance Act 1989, as authorised by section 65ZG of that Act.

Expenses#

Expenses - Payment in respect of Export Credit Office Guarantees and Indemnities PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 186 186

Reasons for Change in Appropriation#

This relates to two claims under the export credit guarantee paid out during the year.

Expected Results#

Expected Results - Payment in respect of Export Credit Office Guarantees and Indemnities PLA (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Claims are reported and paid in a timely and accurate manner. N/A Achieved Achieved

Taitokerau Forests Limited Grant (M31)#

Scope of Appropriation#

This appropriation is limited to grants to Taitokerau Forests Limited for on-payment to forest owners, payable upon harvest of the forests.

Expenses#

Expenses - Taitokerau Forests Limited Grant (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 200 269 469

Reasons for Change in Appropriation#

Grants payable to Taitokerau Forest Limited for on-payment to forest owners, are payable upon harvest of the forests. Timing of the harvest is uncertain and hence an expense transfer from 2009/10 of $269,000 was approved into 2010/11 for services not completed.

Expected Results#

Expected Results - Taitokerau Forests Limited Grant (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Grant payment is made in accordance with the Taitokerau Forests Limited agreement. Achieved Achieved Achieved

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
Additional Payments to Facilitate Full Payout under the Crown Retail Deposit Guarantee Scheme Financial Statements of the Government
Costs in respect of Guarantees and Indemnities PLA Financial Statements of the Government
Earthquake Commission Annual report of EQC
Earthquake Commission - Land Insurance Payments Annual report of EQC
Impairment of Crown's interest in AMI Financial Statements of the Government
National Provident Fund - Crown liability for Scheme Deficiency PLA Financial Statements of the Government
Payment in Respect of Export Credit Office Guarantees and Indemnities PLA Financial Statements of the Government

The above table indicates the mechanisms to be used for reporting actual performance for each non-departmental other expenses appropriation.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

The Treasury - Capital Expenditure PLA (M31)

Scope of Appropriation

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

Capital Expenditure

Capital Expenditure - The Treasury Capital Expenditure PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 851 586 1,437
Intangibles 524 (504) 20
Other - - -

Total Appropriation

1,375 82 1,457

Reasons for Change in Appropriation

The increase in the departmental capital expenditure of $82,000 mainly relates to:

  • a delay in the redevelopment of the Treasury's human resource and financial systems with the financial system replacement now expected in 2011/12 and timing is still unconfirmed for the human resource system replacement, and
  • delay in the development of the NZDMO systems.

This is offset by expected improvements to the security systems and fitout alterations in Treasury to accommodate the scoping work on the mixed ownership model.

Expected Results

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives#

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Finance
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome: A high performing state sector that supports New Zealand's international competitiveness.
Impact: The Crown's balance sheet is managed efficiently and effectively.
AMI Equity Injection
  International Financial Institutions PLA
  Loan in Respect to Guarantees and Indemnities for the Crown Retail Deposit Guarantee Scheme

AMI Equity Injection (M31)#

Scope of Appropriation

This appropriation is limited to the purchase of equity in AMI.

Capital Expenditure

Capital Expenditure - AMI Equity Injection (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 500,000 500,000

Reasons for Change in Appropriation

This is a new appropriation of $500 million for the purchase of equity in AMI.

Expected Results

Expected Results - AMI Equity Injection (M31) - Finance
  2010/11
  Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard
Crown's investment in AMI correctly recorded in the Financial Statements of the Government. N/A Achieved Achieved

Asian Development Bank PLA (M31)#

Scope of Appropriation#

This appropriation is limited to capital expenditure by New Zealand as a member of the Asian Development Bank Agreement, authorised by section 3 of the International Finance Agreements Amendment Act 1966.

Capital Expenditure#

Capital Expenditure - Asian Development Bank PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 71,000 (5,875) 65,125

Reasons for Change in Appropriation#

The 5th General Capital Increase has been made to the Asian Development Bank. The final payment was $65.125 million compared to the forecast of $71 million due to changes in exchange rates and a discount offered.

International Financial Institutions PLA (M31)#

Scope of Appropriation#

This appropriation is limited to capital expenditure for shares subscribed to by New Zealand as a member of International Financial Institutions, authorised by section 5 of the International Finance Agreements Act 1961.

Capital Expenditure#

Capital Expenditure - International Financial Institutions PLA (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 148,000 148,000

Reasons for Change in Appropriation#

This increase is to incorporate possible contributions to the International Monetary Fund (IMF) in 2010/11. Forecasts of contributions were unknown when the Estimates were prepared.

Expected Results#

Landcorp Protected Land Agreement (M31)#

Scope of Appropriation#

Purchase (including by reinvesting cash dividends) of redeemable preference shares in Landcorp under the Protected Land Agreement.

Capital Expenditure#

Capital Expenditure - Landcorp Protected Land Agreement (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 17,347 9,700 27,047

Reasons for Change in Appropriation#

This increase is to provide for the additional capital incurred in maintaining the properties held under the Protected Land Agreement by Landcorp Farming Limited, for the net losses/(profits) of those properties and for interest charged while dividends were diverted to pay off the initial investment.

Loan in Respect to Guarantees and Indemnities for the Crown Retail Deposit Guarantee Scheme (M31)#

Scope of Appropriation#

This appropriation is limited to a loan in respect of guarantees and indemnities for the Crown Retail Deposit Guarantee Scheme in Vote Finance.

Capital Expenditure#

Capital Expenditure - Loan in Respect to Guarantees and Indemnities for the Crown Retail Deposit Guarantee Scheme (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 175,000 175,000

Reasons for Change in Appropriation#

This is a new appropriation for 2010/11 for a $175 million loan to the receivers of South Canterbury Finance to remove prior charge holders. The loan was subsequently repaid in full.

Taitokerau Forests (M31)#

Scope of Appropriation#

This appropriation is limited to the provision of loans to Taitokerau Forests Ltd for forest management and development.

Capital Expenditure#

Capital Expenditure - Taitokerau Forests (M31) - Finance
  2010/11
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 800 700 1,500

Reasons for Change in Appropriation#

The timing of drawdowns of Taitokerau Forests Limited loan facility is uncertain. In 2009/10, the actual drawdown of the loan was $700,000 less than that appropriated for that year resulting in a carry forward of this amount into 2010/11.

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Finance
Appropriation Reporting Mechanism
AMI Equity Injection Financial Statements of Government
International Financial Institutions PLA Financial Statements of Government
Loan in Respect to Guarantees and Indemnities for the Crown Retail Deposit Guarantee Scheme Financial Statements of Government

The above table indicates the mechanisms to be used for reporting actual results for each non-departmental capital expenditure appropriation.