Vote Internal Affairs - Supplementary Estimates 2018/19

Vote Internal Affairs#

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Multi-Year Appropriations#

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote#

Summary of Financial Activity

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administration of Grants (M15)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $288,000 to $3.935 million for 2018/19 due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $268,000), and

• a transfer of funding from the Community Funding Schemes Multi-Category Appropriation to reflect the costs associated with the evaluation Hui with Community-led Development Programme Community Partners (increase of $20,000).

Contestable Services RDA (M41)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $611,000 to $1.611 million for 2018/19 due to an increase in expenditure associated with an increase in demand for Translation Services.

Local Government Services (M49)

Scope of Appropriation

Expenses and Revenue

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - The next survey will be completed in 2019/20.

Note 2 - Satisfaction is determined on a five-point scale of 1-5, with 5 being the highest rating. All ratings of 3, 4 or 5 are "assessed as average or above".

Reasons for Change in Appropriation

This appropriation increased by $542,000 to $4.316 million for 2018/19 due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $870,000)

• an increase in expenditure associated with an increase in demand for Lake Taupo boating facilities (increase of $220,000), and

• an increase in expenditure associated with the National Dog Control Information Database due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (increase of $17,000).

These increases were partially offset by:

• a reduction in expenditure associated with the expected change in timing from 2018/19 to 2019/20 associated with the tendering process for the National Dog Control Information Database operation and support contract (decrease of $450,000), and

• a decrease in expenditure associated with Lake Taupo boating facilities due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (decrease of $115,000).

Memorandum Account

A review of fees for boating facilities is being undertaken and amended fees will be implemented in 2019/20.

A period of higher expenditure is expected in 2019/20 associated with reviewing and renewing the National Dog Control Information Database operation and support contract. This expenditure is expected to utilise the accumulated surplus.

Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions - Operating Expenses (M41)

Scope of Appropriation and Expenses

Revenue

Components of the Appropriation

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective support for the Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Satisfaction is determined on a scale of 1-5, with 5 being the highest rating.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Department of Internal Affairs in its Annual Report.

Reasons for Change in Appropriation

This appropriation was established in 2018/19 to provide funding for the operating expenses associated with the Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions.

2.3 - Departmental Capital Expenditure and Capital Injections#

Department of Internal Affairs - Capital Expenditure PLA (M41)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $20.852 million to $98.123 million for 2018/19 mainly due to investment in the Te Ara Manaaki programme to modernise systems for Identity-related products, the roof replacement for the Archives New Zealand Auckland regional office and the National Library of New Zealand's plant room roof.

Capital Injections and Movements in Departmental Net Assets

Department of Internal Affairs

Part 3 - Details of Non-Departmental Appropriations#

3.2 - Non-Departmental Benefits or Related Expenses#

Rates Rebate Scheme (M49)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $2.700 million to $54.800 million for 2018/19 due to the forecast lower uptake of the Rates Rebate Scheme in 2018/19.

3.4 - Non-Departmental Other Expenses#

Chatham Islands Wharves - Operational Costs (M41)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $260,000 to $3.539 million for 2018/19 due to funding for additional depreciation associated with the revaluation of Waitangi Wharf in the Chatham Islands.

Crown-owned Assets at Lake Taupo - Maintenance Costs (M49)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $362,000 to $949,000 for 2018/19 due to:

• funding for the additional depreciation associated with the revaluation of Crown-owned assets at Lake Taupo (increase of $187,000), and

• an expense transfer from 2017/18 to 2018/19 to provide funding for the maintenance of Crown-owned assets at Lake Taupo (increase of $175,000).

Former Prime Ministers - Annuities PLA (M47)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $2,000 to $226,000 for 2018/19 due to an increase in costs pursuant to the Parliamentary Annuities Determination 2018.

Miscellaneous Grants - Internal Affairs (M41)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $1.193 million to $3.262 million for 2018/19 due to funding to recognise the Government's contribution towards the Te Puna Foundation.

Public Inquiries (M41)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $996,000 to $1.588 million for 2018/19 due to:

• expense transfers from 2017/18 to 2018/19 for the Government Inquiry into Operation Burnham and Related Matters (increase of $154,000) and the Government Inquiry into Mental Health and Addiction (increase of $129,000)

• funding for the Royal Commission of Inquiry into the Attack on the Christchurch Mosques on 15 March 2019 (increase of $262,000)

• funding for the Government Inquiry into the Auckland Fuel Supply Disruption (increase of $184,000)

• a transfer of funding from the Support for Statutory and Other Bodies MCA to meet the non-departmental costs associated with the Government Inquiry into Operation Burnham and Related Matters (increase of $100,000)

• funding to meet the costs associated with the extension of the report back date for the Government Inquiry into Operation Burnham and Related Matters (increase $90,000)

• a transfer of funding from Vote Police to Vote Internal Affairs to meet the costs associated with the extension of the report back for the Government Inquiry into the Appointment Process for a Deputy Commissioner of Police (increase of $35,000)

• funding for the Government Inquiry into the Appointment Process for a Deputy Commissioner of Police (increase of $34,000), and

• a transfer of funding from the Support for Statutory and Other Bodies MCA to reflect the actual expenditure associated with the extension of the report back for the Government Inquiry into the Appointment Process for a Deputy Commissioner of Police (increase of $8,000).

Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions - Commissioners' Fees (M41)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve timely and efficient payment of fees to the Commissioners of the Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Internal Affairs in a report appended to the Department of Internal Affairs' Annual Report.

Reasons for Change in Appropriation

This appropriation was established in 2018/19 to provide funding for the Commissioners' fees associated with the Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions.

Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions - Counselling Costs (M41)

Scope of Appropriation and Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve timely and efficient payment of fees for counselling services for individuals participating in the Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Internal Affairs in a report appended to the Department of Internal Affairs' Annual Report.

Reasons for Change in Appropriation

This appropriation was established in 2018/19 to provide funding for the counselling costs for individuals participating in the Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions.

Settling-In Grants (M30)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $1 million to $1.520 million for 2018/19 due to additional funding to support community-led responses and initiatives following the Christchurch Mosques Terror Attack.

Transfer of Crown Assets at Taupo Landing Recreation Reserve (M74)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the transfer of Crown assets at the Taupo Landing Recreation Reserve to the Taupo District Council at nil consideration.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act as the amount of this annual non-departmental other expense appropriation is less than $5 million.

Reasons for Change in Appropriation

This appropriation was re-established in 2018/19 due to an expense transfer from 2017/18 to 2018/19 to enable Crown-owned assets at the Taupo Landing Recreation Reserve which are not associated with the harbourmaster function, to be transferred to the Taupo District Council at nil consideration (increase of $484,000).

3.5 - Non-Departmental Capital Expenditure#

Capital Investments - Lake Taupo (M49)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the upgrade of boating facilities including the renewal and refurbishment of navigational and safety infrastructure at Lake Taupo.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act as the amount of this annual non-departmental capital expenditure appropriation is less than $15 million.

Reasons for Change in Appropriation

This appropriation was re-established in 2018/19 due to:

• a reclassification of a workshop at Lake Taupo, previously classified as a departmental asset, as part of the non-departmental boating facilities at Lake Taupo (increase of $113,000), and

• a capital transfer from 2017/18 to 2018/19 to provide funding for the upgrade of boating facilities at Lake Taupo (increase of $108,000).

These increases were partially offset by:

• a capital transfer from 2018/19 to 2019/20 to provide funding for the upgrade of boating facilities at Lake Taupo (decrease of $50,000).

Capital Investments - Official Residences (M47)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $536,000 to $936,000 for 2018/19 due to a capital transfer from 2017/18 to 2018/19 to reflect the expected timing of capital improvements at official residences.

Fire Service Reform - Capital Injection (M41)

Scope of Appropriation and Expenses

Components of the Appropriation

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Civic Information Services (M41)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Components of the Appropriation

Reasons for Change in Appropriation

This appropriation increased by $4.706 million to $245.514 million for 2018/19.

The increase in the Managing and Accessing Identity Information category was due to:

• an increase in expenditure for Passport Products due to additional expenditure associated with increased demand, moving functionality into an Infrastructure as a Service environment, the Te Ara Manaaki programme and increased Wellington and Auckland accommodation project costs (increase of $7.981 million)

• funding to meet the costs associated with continuing work on the Developing Options for a New Approach to Digital Identity work programme (increase of $2.575 million)

• an increase in expenditure associated with recovery of costs from the Ministry of Education for Work Force Identity Access Management and Sector Identity Access Management infrastructure hosting and support costs (increase of $1.068 million)

• an increase in expenditure for Birth, Death and Marriage Certifications and other Products due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (increase of $1.052 million)

• an increase in expenditure for Birth, Death and Marriage Certifications and other Products due to expenditure associated with increased demand, Life Data virtualisation operational costs, the Te Ara Manaaki programme and increased Wellington and Auckland accommodation project costs (increase of $575,000)

• an increase in expenditure for Citizenship Products due to expenditure associated with increased demand, the Te Ara Manaaki programme and increased Wellington and Auckland accommodation project costs (increase of $547,000)

• an increase in expenditure for Marriage and Civil Union Products due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (increase of $408,000)

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $86,000), and

• an increase in expenditure for Marriage and Civil Union Products due to expenditure associated with the Te Ara Manaaki programme and increased Wellington and Auckland accommodation project costs (increase of $48,000).

These increases were partially offset by:

• a decrease in expenditure for Passport Products due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (decrease of $2.944 million)

• a transfer of funding to the Information and Technology Services Multi-Category Appropriation to reflect a realignment of expenditure and associated funding for the Developing Options for a New Approach to Digital Identity work programme (decrease of $2.575 million)

• a decrease in expenditure due to a decrease in rental revenue associated with the sub-lease of properties (decrease of $165,000), and

• a decrease in expenditure for Citizenship Products due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (decrease of $15,000).

The decrease in the Managing and Accessing Knowledge Information category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $4.989 million), and

• a realignment of the revenue and expenditure baseline associated with the provision of services provided by Archives New Zealand to third parties (decrease of $295,000).

These decreases were partially offset by:

• an increase in expenditure for the Kotui shared library and resource discovery service due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (increase of $347,000)

• an increase in expenditure associated with demand for the Kotui shared library and resource discovery service due to an increase in library uptake (increase of $300,000)

• expenditure associated with the replacement and restoration of National Library School Collection books damaged in 2018/19 (increase of $265,000)

• a realignment of the revenue and expenditure baseline associated with the provision of services provided by the National Library to third parties (increase of $190,000)

• an increase in expenditure associated with recovery of costs from the Ministry of Education for the Any Questions and the Increasingly Digital initiatives (increase of $115,000)

• an increase in expenditure for the Electronic Purchasing in Collaboration services due to the annual Consumer Price Index adjustment from vendors (increase of $80,000)

• an increase in expenditure for the Electronic Purchasing in Collaboration services due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (increase of $61,000), and

• an increase in capital charge expenditure as a result of asset revaluations (increase of $15,000).

The decrease in the Publishing Civic Information category was due to:

• a decrease in expenditure associated with the New Zealand Gazette due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (decrease of $24,000).

Memorandum Account

A review of fees is being undertaken in 2018/19 and it is expected that a new fee structure will be implemented in July 2019 to ensure that the costs of publishing the New Zealand Gazette are recovered at an appropriate level.

Strong demand for 10-year passports is forecast until 2021. After 2021, a significant decrease in demand is forecast, resulting from the change in November 2015 of adult passport validity from five years to ten years. This forecast decrease will result in the memorandum account moving towards a deficit position. New fees were implemented from March 2019 to prevent the projected deficit from occurring.

The Department is undertaking work as part of the Te Ara Manaaki programme to modernise systems for Identity-related products. The surplus is expected to contribute to the cost of replacing ageing technology. Citizenship fees will be reviewed following completion of this programme of work.

The Department is undertaking work as part of the Te Ara Manaaki programme to modernise systems for Identity-related products. The surplus will contribute to the cost of replacing ageing technology.

The Department is undertaking work as part of the Te Ara Manaaki programme to modernise systems for Identity-related products. The surplus will contribute towards the cost of replacing ageing technology.

Subscription fees are reviewed annually to ensure full recovery of costs.

Fees are reviewed annually and are based on member uptake and vendor costs.

Community Funding Schemes (M15)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation decreased by $230,000 to $21.303 million for 2018/19.

The increase in the Community Development Scheme category was due to:

• an expense transfer from 2017/18 to 2018/19 to maximise community outcomes of resilience and sustainability and enable the programme to settle into a regular cycle of new and existing partnerships (increase of $180,000).

This increase was partially offset by:

• a transfer of funding to the departmental appropriation Administration of Grants to reflect the costs associated with the evaluation Hui with Community-led Development Programme Community Partners (decrease of $20,000).

The decrease in the Digital Literacy and Connection category was due to:

• return of funding to the Crown for reprioritisation to other priority areas in Budget 2019 to improve wellbeing for New Zealanders (decrease of $540,000).

This decrease was partially offset by:

• an expense transfer from 2017/18 to 2018/19 to support the establishment of the Digital Economy and Digital Inclusion Ministerial Advisory Group in 2018/19 (increase of $100,000).

The increase in the Disarmament Education Grants category was due to:

• a transfer of funding from Vote Foreign Affairs and Trade to Vote Internal Affairs to reflect an increase in the Consumer Price Index, inflation and other associated costs (increase of $50,000).

Community Information and Advisory Services (M41)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $236,000 to $11.083 million for 2018/19.

The increase in the Advisory and Information Services to Ethnic Communities category was due to:

• funding to immediately scale up the Office of Ethnic Communities operations in Christchurch and for hosting national dialogues with Muslim leaders and interfaith communities, and for hosting events with other relevant groups including Muslim women and youth, following the Christchurch Mosques Terror Attack (increase of $797,000).

This increase was partially offset by:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $515,000).

The increase in the Community Archives Support category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $25,000).

The decrease in the Community Development and Engagement Advice category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $71,000).

Information and Technology Services (M100)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Components of the Appropriation

Reasons for Change in Appropriation

This appropriation increased by $15.144 million to $50.716 million for 2018/19.

The increase in the Cross-Government ICT Strategy and Planning, Service Delivery and Investment Proposals category was due to:

• funding for the continued operation of the Digital Government Partnership Fund in 2018/19 (increase of $10 million)

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $3.251 million)

• funding to enable the Government Chief Digital Officer to deliver the government's priorities in digital rights, digital inclusion and procurement and to discharge a limited functional lead mandate (increase of $2.900 million), and

• a transfer of funding from the Civic Information Services Multi-Category Appropriation to reflect a realignment of expenditure and associated funding for the Developing Options for a New Approach to Digital Identity work programme (increase of $2.575 million).

These increases were partially offset by:

• an expense transfer from 2018/19 to 2019/20 to enable the development of options for a new approach to digital identity (decrease of $1 million).

The increase in the Government Chief Privacy Officer category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $109,000).

The decrease in the Government Information and Technology Services category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $2.556 million)

• a realignment of the revenue and expenditure baseline associated with the Common Web Platform due to a change in accounting treatment (decrease of $1.488 million)

• a transfer of funding from Vote Internal Affairs to Vote Business, Science and Innovation to meet the costs associated with the Chief Technology Officer and the Digital Economy and Digital Inclusion Ministerial Advisory Group work programmes, that will be undertaken by the Ministry of Business, Innovation and Employment (decrease of $648,000)

• a decrease in expenditure associated with a reassessment of the expected useful life, capitalisation date and cost of the ICT Marketplace asset (decrease of $451,000), and

• a decrease in expenditure due to a decrease in rental revenue associated with the sub-lease of properties (decrease of $7,000).

These decreases were partially offset by:

• an increase in expenditure associated with All-of-Government Common Capability Products due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (increase of $1.476 million)

• an increase in expenditure associated with All-of-Government Common Capability Products due to additional costs for the IT Managed Services return to market work programme and the introduction of the new ICT Marketplace product (increase of $564,000), and

• an expense transfer from 2017/18 to 2018/19 to allow Government Information Services to complete the work that the Government Chief Digital Officer and the State Services Commission have committed to, to investigate and deliver options aimed at developing Govt.nz into a future proofed unified government digital experience in 2018/19 (increase of $419,000).

Memorandum Account

The memorandum account was forecast to break even from 2020/21, however updated projections now indicate the breakeven position will not occur in 2020/21 due to revised projected costs of operation and service fees. As development of common capability products continues, this will lead to increased or specific products being available to government agencies to access. The rate of recovery from deficit will depend on the uptake rate by government agencies of common capability products, costs incurred in providing these products and the fees applied.

Ministerial Support Services (M41)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $740,000 to $3.247 million for 2018/19.

The decrease in the Crown Entity Monitoring category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $579,000).

The increase in the Ministerial Support Services - Community and Voluntary Sector category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $229,000).

The increase in the Ministerial Support Services - Ethnic Communities category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $105,000).

The increase in the Ministerial Support Services - Internal Affairs category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $459,000).

The increase in the Ministerial Support Services - Local Government category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $234,000).

The increase in the Ministerial Support Services - Ministerial Services category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $75,000).

The increase in the Ministerial Support Services - Racing category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $217,000).

Policy Advice (M41)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $7.605 million to $20.429 million for 2018/19.

The increase in the Policy Advice - Community and Voluntary Sector category was due to:

• an expense transfer from 2017/18 to 2018/19 to enable the completion of the Quantifying Social Enterprise research report in 2018/19 (increase of $60,000), and

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $42,000).

The increase in the Policy Advice - Ethnic Communities category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $526,000).

The decrease in the Policy Advice - Internal Affairs category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $310,000).

The increase in the Policy Advice - Local Government category was due to:

• funding to meet the first-year costs associated with the Central/Local Government Partnerships programme (increase of $2.700 million)

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $1.642 million)

• funding to enable the Infrastructure Funding and Financing work programme to proceed (increase of $1.200 million), and

• an expense transfer from 2017/18 to 2018/19 to enable the completion of phase two of the Three Waters Infrastructure Review in 2018/19 (increase of $249,000).

The increase in the Policy Advice - Racing category was due to:

• funding to meet the costs associated with the Ministerial Advisory Committee and additional policy capacity to consider and analyse the Review of the Racing Industry Report's recommendations, develop policy options and develop legislative and organisational change proposals (increase of $1.476 million), and

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $20,000).

Regulatory Services (M41)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Components of the Appropriation

Reasons for Change in Appropriation

This appropriation increased by $1.315 million to $52.503 million for 2018/19.

The increase in the Charities Regulation category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $816,000).

The increase in the Regulatory Services category was due to:

• an expense transfer from 2017/18 to 2018/19 to enable the expansion of the Anti-Money Laundering enforcement team to support the extended scope of the Anti-Money Laundering and Countering Financing of Terrorism Act (increase of $1.168 million)

• an increase in expenditure associated with a reassessment of the expected useful life of the current gambling software platform (increase of $653,000), and

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $594,000).

These increases were partially offset by:

• an operating to capital swap to reflect the capital components associated with the implementation and ongoing operation of Phase II of the Anti-Money Laundering and Countering the Financing of Terrorism reforms (decrease of $1.168 million)

• return of funding to the Crown for reprioritisation to other priority areas in Budget 2019 to improve wellbeing for New Zealanders (decrease of $457,000)

• a decrease in expenditure associated with Gaming Products due to changes as a result of the 2018 Four Year Plan and the reallocation of shared services costs within Vote Internal Affairs (decrease of $263,000), and

• a decrease in expenditure due to a decrease in rental revenue associated with the sub-lease of properties (decrease of $28,000).

Memorandum Account

The memorandum account returned to surplus faster than anticipated due to higher than expected product demand. A review of fees will be undertaken in 2020/21.

Services Supporting the Executive (M47)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Reasons for Change in Appropriation

This appropriation increased by $2.668 million to $46.190 million for 2018/19.

The increase in the Coordination of Official Visits and Events category was due to:

• funding to meet the costs associated with hosting the National Remembrance Service in Christchurch (increase of $1.500 million)

• funding to meet the costs associated with the visit by the Duke and Duchess of Sussex in October 2018 (increase of $1.025 million), and

• funding to meet the costs associated with hosting international dignitaries who attended the National Remembrance Service in Christchurch or other services and the costs associated with the visit by the Duke of Cambridge (increase of $640,000).

These increases were partially offset by:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $294,000).

The decrease in the Support Services to Members of the Executive category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $203,000).

Support for Statutory and Other Bodies (M41)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with each Category and How Performance will be Assessed

Note 1 - Satisfaction is determined on a scale of 1-5, with 5 being the highest.

Note 2 - The Government Inquiry into Operation Burnham and Related Matters is listed using the full legal name.

Reasons for Change in Appropriation

This appropriation increased by $9.549 million to $25.678 million for 2018/19.

The increase in the Commissions of Inquiry and Similar Bodies category was due to:

• expense transfers from 2017/18 to 2018/19 for the Government Inquiry into Mental Health and Addiction (increase of $1.828 million) and the Government Inquiry into Operation Burnham and Related Matters (increase of $1.274 million)

• funding to meet the costs associated with the extension of the report back date for the Government Inquiry into Operation Burnham and Related Matters (increase of $2.743 million)

• funding for the Royal Commission of Inquiry into the Attack on the Christchurch Mosques on 15 March 2019 (increase of $1.740 million)

• funding for the Government Inquiry into the Auckland Fuel Supply Disruption (increase of $944,000)

• funding for the Government Inquiry into the Appointment Process for a Deputy Commissioner of Police (increase of $116,000), and

• a transfer of funding from Vote Police to Vote Internal Affairs to meet the costs associated with the extension of the report back for the Government Inquiry into the Appointment Process for a Deputy Commissioner of Police (increase of $79,000).

These increases were partially offset by:

• a transfer of funding to the non-departmental appropriation, Public Inquiries, to meet the non-departmental costs associated with the Government Inquiry into Operation Burnham and Related Matters (decrease of $100,000), and

• a transfer of funding to the non-departmental appropriation, Public Inquiries, to reflect the actual expenditure associated with the extension of the report back for the Government Inquiry into the Appointment Process for a Deputy Commissioner of Police (decrease of $8,000).

The decrease in the Statutory and Advisory Body Support - National Archives category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $16,000).

The increase in the Statutory Body Support - Local Government Commission category was due to:

• an expense transfer from 2017/18 to 2018/19 to enable the continuation and completion of a joint shared services project with the four local authorities on the West Coast in 2018/19 (increase of $200,000), and

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $61,000).

The increase in the Support for Grant Funding Bodies - Internal Affairs category was due to:

• expenditure associated with an increase in the provision of services for the Lottery Grants Board (increase of $484,000), and

• funding from the Lottery Grants Board to support the further development of Oranga Marae (increase of $300,000).

These increases were partially offset by:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $96,000).