Vote Oranga Tamariki - Supplementary Estimates 2018/19

Vote Oranga Tamariki#

APPROPRIATION MINISTER(S): Minister of State Services (M66), Minister for Children (M93)

APPROPRIATION ADMINISTRATOR: Oranga Tamariki - Ministry for Children

RESPONSIBLE MINISTER FOR ORANGA TAMARIKI - MINISTRY FOR CHILDREN: Minister for Children

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type	Estimates Budget $000	Supplementary Estimates Budget $000	Total Budget $000
	2018/19
Departmental Output Expenses
*Adoption Services (M93)* This appropriation is limited to the management of services, incorporating education, assessment, reporting, counselling, and mediation, to all people who are party to adoption-related matters, past or present.	7,502	-	7,502
*Crown Response to the Royal Commission of Inquiry into Historical Abuse in State Care and in the Care of Faith-Based Institutions (M66)* This appropriation is limited to the provision of support to deliver a coordinated and effective Crown response to the Royal Commission of Inquiry into Historical Abuse in State Care and in the Care of Faith-Based Institutions.	-	548	548
*Data, Analytics and Evidence Services (M93)* This appropriation is limited to providing data, analytics and evidence services to better inform government decision-making on vulnerable children and young people.	3,200	3,750	6,950
*Ministerial Services (M93)* This appropriation is limited to providing services to Ministers to enable them to discharge their portfolio responsibilities (other than policy decision-making) relating to vulnerable children and young people.	1,190	-	1,190
*Policy Advice (M93)* This appropriation is limited to providing advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to vulnerable children and young people.	4,377	720	5,097
*Supporting Equitable Pay for Care and Support Workers (M93)* This appropriation is limited to the additional costs of worker hours resulting from the Care and Support Workers (Pay Equity) Settlement Act 2017.	544	(544)	-
Total Departmental Output Expenses	16,813	4,474	21,287
Departmental Capital Expenditure
*Ministry for Vulnerable Children, Oranga Tamariki - Capital Expenditure PLA (M93)* This appropriation is limited to the purchase or development of assets by and for the use of the Ministry for Vulnerable Children, Oranga Tamariki; as authorised by section 24(1) of the Public Finance Act 1989.	11,110	7,500	18,610
Total Departmental Capital Expenditure	11,110	7,500	18,610
Non-Departmental Output Expenses
*Connection and Advocacy Service (M93)* This appropriation is limited to supporting an independent connection and advocacy service for children and young people in statutory care.	4,000	-	4,000
Total Non-Departmental Output Expenses	4,000	-	4,000
Multi-Category Expenses and Capital Expenditure
*Investing in Children and Young People MCA (M93)* The overarching purpose of this appropriation is to ensure New Zealand's vulnerable children and young people have positive outcomes.	916,480	56,843	973,323
Departmental Output Expenses
Early and Intensive Intervention This category is limited to intake assessments and early and intensive intervention services for children and young people exhibiting needs which place them at risk of poor life outcomes and/or requiring a statutory intervention.	267,570	(5,250)	262,320
Prevention This category is limited to providing prevention and awareness programmes and services to identify and support children, young people and their families at risk of poor life outcomes.	15,025	(2,352)	12,673
Statutory Intervention and Transition This category is limited to providing statutory care and youth justice services, and services to transition children and young people from statutory intervention.	605,818	73,373	679,191
Supporting and Developing Providers and Services This category is limited to service development; and approving, monitoring, contracting and managing the relationship with, and developing the capacity and capability of, service providers.	28,067	(8,928)	19,139
Total Multi-Category Expenses and Capital Expenditure	916,480	56,843	973,323
Total Annual Appropriations and Forecast Permanent Appropriations	948,403	68,817	1,017,220

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations	Appropriations, Adjustments and Use	$000
Departmental Output Expenses
*Evaluation and Auditing Expenses for the Reducing Youth Reoffending Social Bond Pilot (M93)* This appropriation is limited to the costs of evaluating and auditing the Reducing Youth Reoffending Social Bond Pilot. Commences: 01 July 2017 Expires: 30 June 2022	Original Appropriation	300
	Adjustments to 2017/18	-
	Adjustments for 2018/19	-
	Adjusted Appropriation	300
	Actual to 2017/18 Year End	-
	Estimated Actual for 2018/19	75
	Estimate for 2019/20	75
	Estimated Appropriation Remaining	150
Non-Departmental Output Expenses
*Reducing Youth Reoffending Social Bond Pilot (M93)* This appropriation is limited to the outcome payments incurred under the Reducing Youth Reoffending Social Bond Pilot. Commences: 01 July 2017 Expires: 30 June 2022	Original Appropriation	24,000
	Adjustments to 2017/18	-
	Adjustments for 2018/19	-
	Adjusted Appropriation	24,000
	Actual to 2017/18 Year End	429
	Estimated Actual for 2018/19	3,394
	Estimate for 2019/20	9,886
	Estimated Appropriation Remaining	10,291

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

	2018/19
	Estimates Budget $000	Supplementary Estimates Budget $000	Total Budget $000
Total Annual Appropriations and Forecast Permanent Appropriations	948,403	68,817	1,017,220
Total Forecast MYA Departmental Output Expenses	75	-	75
Total Forecast MYA Non-Departmental Output Expenses	3,384	10	3,394
Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations	951,862	68,827	1,020,689

Capital Injection Authorisations#

	2018/19
	Estimates Budget $000	Supplementary Estimates Budget $000	Total Budget $000
Oranga Tamariki - Ministry for Children - Capital Injection (M93)	-	-	-

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote#

Summary of Financial Activity

	2018/19
		Supplementary Estimates
	Estimates $000	Departmental Transactions $000	Non-Departmental Transactions $000	Total Transactions $000	Total $000
Appropriations
Output Expenses	24,272	4,474	10	4,484	28,756
Benefits or Related Expenses	-	N/A	-	-	-
Borrowing Expenses	-	-	-	-	-
Other Expenses	-	-	-	-	-
Capital Expenditure	11,110	7,500	-	7,500	18,610
Intelligence and Security Department Expenses and Capital Expenditure	-	-	N/A	-	-
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses	916,480	56,843	-	56,843	973,323
Other Expenses	-	-	-	-	-
Capital Expenditure	-	N/A	-	-	-
Total Appropriations	951,862	68,817	10	68,827	1,020,689
Crown Revenue and Capital Receipts
Tax Revenue	-	N/A	-	-	-
Non-Tax Revenue	-	N/A	-	-	-
Capital Receipts	-	N/A	-	-	-
Total Crown Revenue and Capital Receipts	-	N/A	-	-	-

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Crown Response to the Royal Commission of Inquiry into Historical Abuse in State Care and in the Care of Faith-Based Institutions (M66)

Scope of Appropriation

This appropriation is limited to the provision of support to deliver a coordinated and effective Crown response to the Royal Commission of Inquiry into Historical Abuse in State Care and in the Care of Faith-Based Institutions.

Expenses and Revenue

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	-	548	548
Revenue from the Crown	-	548	548
Revenue from Others	-	-	-

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an effective, timely and joined-up Crown response to, and engagement with, the Royal Commission of Inquiry 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

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2018/19
Report progress on the Crown response to the Royal Commission of Inquiry into Historical Abuse in State Care and in the Care of Faith-Based Institutions annually	New Measure	Report On	Report On

End of Year Performance Reporting

Performance information for this appropriation will be reported in the Oranga Tamariki - Ministry for Children's Annual Report.

Reasons for Change in Appropriation

The appropriation of $548,000 is a newly established appropriation for 2018/19 resulting from the establishment of the Royal Commission of Inquiry into Historical Abuse in Care, this initiative is led by the Minister of State Services.

Data, Analytics and Evidence Services (M93)

Scope of Appropriation

This appropriation is limited to providing data, analytics and evidence services to better inform government decision-making on vulnerable children and young people.

Reasons for Change in Appropriation

The appropriation increased by $3.750 million to $6.950 million for 2018/19 due to:

$2.600 million for the realignment of costs which better reflects the update to the Oranga Tamariki Act 1989 and the new care standards regulations 2018
$550,000 related to undertaking an evaluation of the Services to Reduce Offending Programme
$500,000 for an evaluation of the clothing allowance for children supported by the Orphan's Benefit or Unsupported Child's Benefit, and
$100,000 to undertake an evaluation of Social Workers in School.

Policy Advice (M93)

Scope of Appropriation

This appropriation is limited to providing advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to vulnerable children and young people.

Reasons for Change in Appropriation

The appropriation increased by $720,000 to $5.097 million for 2018/19 due to funding for additional policy capacity included in the drawdown on the remaining corporate services establishment contingency.

Supporting Equitable Pay for Care and Support Workers (M93)

Scope of Appropriation

This appropriation is limited to the additional costs of worker hours resulting from the Care and Support Workers (Pay Equity) Settlement Act 2017.

Reasons for Change in Appropriation

The appropriation decreased $544,000 to $0 for 2018/19 due to a realignment of these costs into the Investing in Children and Young People MCA.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry for Vulnerable Children, Oranga Tamariki - Capital Expenditure PLA (M93)

Scope of Appropriation

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

Capital Expenditure

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Forests/Agricultural	-	-	-
Land	-	-	-
Property, Plant and Equipment	10,860	-	10,860
Intangibles	250	7,500	7,750
Other	-	-	-
Total Appropriation	11,110	7,500	18,610

Reasons for Change in Appropriation

The appropriation increased by $7.500 million to $18.610 million for 2018/19 due to an increase for the carry forward of the digital work programme.

Capital Injections and Movements in Departmental Net Assets

Oranga Tamariki - Ministry for Children

Details of Net Asset Schedule	2018/19 Main Estimates Projections $000	2018/19 Supplementary Estimates Projections $000	Explanation of Projected Movements in 2018/19
Opening Balance	193,018	193,018	Supplementary Estimates opening balance reflects the audited results as at 30 June 2018.
Capital Injections	-	-
Capital Withdrawals	-	-
Surplus to be Retained (Deficit Incurred)	-	-
Other Movements	-	-
Closing Balance	193,018	193,018

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

Multi-Category Expenses and Capital Expenditure#

Investing in Children and Young People (M93)

Overarching Purpose Statement

The overarching purpose of this appropriation is to ensure New Zealand's vulnerable children and young people have positive outcomes.

Scope of Appropriation

Departmental Output Expenses

Early and Intensive Intervention
This category is limited to intake assessments and early and intensive intervention services for children and young people exhibiting needs which place them at risk of poor life outcomes and/or requiring a statutory intervention.
Prevention
This category is limited to providing prevention and awareness programmes and services to identify and support children, young people and their families at risk of poor life outcomes.
Statutory Intervention and Transition
This category is limited to providing statutory care and youth justice services, and services to transition children and young people from statutory intervention.
Supporting and Developing Providers and Services
This category is limited to service development; and approving, monitoring, contracting and managing the relationship with, and developing the capacity and capability of, service providers.

Expenses, Revenue and Capital Expenditure

	2018/19
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	916,480	56,843	973,323
*Departmental Output Expenses*
Early and Intensive Intervention	267,570	(5,250)	262,320
Prevention	15,025	(2,352)	12,673
Statutory Intervention and Transition	605,818	73,373	679,191
Supporting and Developing Providers and Services	28,067	(8,928)	19,139
Funding for Departmental Output Expenses
*Revenue from the Crown*	903,715	55,143	958,858
Early and Intensive Intervention	267,570	(5,250)	262,320
Prevention	15,025	(2,352)	12,673
Statutory Intervention and Transition	602,094	71,673	673,767
Supporting and Developing Providers and Services	19,026	(8,928)	10,098
*Revenue from Others*	12,765	1,700	14,465
Statutory Intervention and Transition	3,724	1,700	5,424
Supporting and Developing Providers and Services	9,041	-	9,041

Reasons for Change in Appropriation

The appropriation increased by $56.843 million to $973.323 million for 2018/19 due to:

$17.700 million pre-commitment funding for preparatory changes to meet new legislative obligation relating to the care system, transition support service and information sharing requirements
$18 million related to meeting the needs of children in care
$9.592 million social worker pay equity settlement for the historical and continued gender based undervaluation
$6.690 million funding transferred from 2017/18 to 2018/19 is due to a delay in projects outside of the Ministry's control

$3.515 million allocation of corporate services funding across all Ministry appropriations
$2.200 for Engaging all New Zealanders
$1.700 million for Child Support receipts from liable parents, for children in the Ministry's care
$1.141 million for Services to Reduce Youth Offending
$816,000 for purchased services from the Ministry of Social Development which better aligns to Oranga Tamariki
$544,000 from the realignment of the supporting equitable pay for care and support workers appropriations
$200,000 to support the Ministry's role in the National Social Wellbeing Board, and
$190,000 Consumer Price Index adjustment to Foster Care and Other Allowances.

The above is offset by:

$2.845 million fiscally neutral adjustment to Vote Social Development to realign funding driven by a review of shared services between the two Ministries, and

$2.600 million for the realignment of cost between appropriations after a review of the appropriation structure, the realignment better reflects the operations of the Ministry.