Vote Corrections - Justice - Estimates 2014/2015

Summary of the Vote#

Overview#

The Minister of Corrections is responsible for appropriations in Vote Corrections for the 2014/15 financial year covering:

Operating Expenditure

• $727.636 million (61.38% of the Vote) for the provision of custodial services for offenders lawfully required to be detained in custody. This includes remand prisoners (people awaiting trial, and offenders convicted but not yet sentenced), those offenders sentenced to imprisonment, and any other offender required to be lawfully detained in custody

• $218.470 million (18.43% of the Vote) for the management and delivery of sentences and orders served in the community, and electronic monitoring of people on bail

• $178.742 million (15.08% of the Vote) for the provision of case management and interventions designed to address the underlying causes of criminal re-offending

• $53.277 million (4.49% of the Vote) for the provision of information about offenders to: victims of crime, the Judiciary and the New Zealand Parole Board, and the provision of administrative, financial and secretariat services to the New Zealand Parole Board

• $4.135 million (0.35% of the Vote) for the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters

• $1.755 million (0.15% of the Vote) to prepare and manage contracts for services provided by third parties, and

• $1.474 million (0.12% of the Vote) for the Department's responses to ministerial correspondence and parliamentary questions.

Capital Expenditure

• $319.715 million on the purchase or development of assets by and for the use of the Department of Corrections, as authorised by section 24(1) of the Public Finance Act 1989.

Details of these appropriations are set out in Parts 2-4.

Estimates of Appropriations#

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations

Capital Injection Authorisations

Supporting Information#

Part 1 - Vote as a Whole#

This part provides trend information for the vote.

1.2 - Trends in the Vote#

Summary of Financial Activity#

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered.

Adjustments to the Summary of Financial Activity table due to Vote Restructuring#

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure. The Department had one Vote structural change, relating to the conversion of its MCOA appropriation to an MCA, as a result of the Public Finance Amendment Act 2013.

1.3 - Analysis of Significant Trends#

In 2011 the Justice Sector made a commitment to work within fixed baselines until 2020. The Department is continuing to meet that commitment through careful management of its operating budgets and through prudent capital investment in current and future assets. To further contribute to this goal and to deliver improved services while ensuring long term sustainability, the Department has implemented a second Expenditure Review in 2013/14.

The Department is partnering with the private sector to deliver improved services and better public value. Progress in this area means that by 2015 approximately 25% of the Department's core custodial work will be managed under contract in the private sector:

• Serco has been operating the Mt Eden Corrections Facility since 2011.
• The SecureFuture consortium will build, operate and finance the 960 bed new prison at Wiri in South Auckland, under a Public Private Partnership. The prison is due to open in June 2015.

Departmental Output Expense Trends

Significant movements in Vote Corrections include:

• The Department made a commitment to contribute $87 million to the Justice Sector Fund, over three financial years (2012/13-2014/15). The Justice Sector Fund is a contestable fund to which each agency can submit funding bids, to support new initiatives that enable the sector to meet its objectives. The fund is also intended to be self-sustaining whereby new initiatives generate future savings that can be returned to the fund. The Department will make its final contribution of $20 million to the fund, in 2014/15.
• In 2012 the Cabinet Economic Growth and Infrastructure Committee agreed to the Department's funding to meet its obligations in respect of the operating costs of the new prison at Wiri, South Auckland. These changes included an increase in funding of $45.3 million in 2015/16 reducing to $33.1 million in 2016/17 and out years.
• The Department's budget has reduced by $33.7 million in 2014/15 as a result of:
  • One-off funding that was transferred to 2013/14 for project related costs such as Work Wear, Public Protection Orders, Staff Safety, Prison Clothing and Reducing Re-offending. This funding has not been appropriated in the Department's 2014/15 budget.
  • The Department transferred one-off funding, arising from efficiency savings achieved in 2012/13, to meet its cost pressures in 2013/14. This funding has not been appropriated in the Department's 2014/15 budget.
  • One-off costs associated with the June 2013 Spring Hill Riot and September 2010 Christchurch Earthquake were included in the 2013/14 budget. No additional provision has been made in the 2014/15 budget for these one-off events.
  • The Department has transferred one-off efficiency savings achieved in 2013/14 to the Justice Sector Fund (the Fund) which is in line with the principles established for the treatment of underspends when the Fund was established. The savings have arisen from an intensive focus on generating savings and efficiencies, working even smarter and being innovative in making every dollar go further and the early implementation of the Expenditure Review programme initiatives. The Department is likely to place a bid against the Fund in 2014/15 to support the completion of the second stage of the Expenditure Review.

Departmental Capital Expenditure

The Department's projected capital intentions from 2013/14 to 2017/18 include the new prison at Wiri, Auckland Prison redevelopment and the development of prison sites at Tongariro, Whanganui and Invercargill. In addition, the Department plans to deliver projects related to: audio/video links connecting prison sites to courts, asset lifecycle replacement at Community Corrections and prison sites, enhancements to electronic security assets and information technology systems and applications.

1.4 - Reconciliation of Changes in Appropriation Structure#

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

1.5 - Relationship between Individual Appropriations and the Work Programmes#

Objectives of the Vote

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Contract Management of Services provided by Third Parties (M18)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation enables the Department to manage the contracting of services from third party providers in a competitive market; ensuring cost efficiency is achieved without compromising service effectiveness. Contract governance and the monitoring of performance against contracted outcomes is provided through this appropriation.

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 Department of Corrections in its Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This appropriation decreased as less project related costs are expected to be incurred in 2014/15 for the new prison at Wiri, currently being built under a Public-Private Partnership agreement.

Information and Administrative Services to the Judiciary and New Zealand Parole Board (M18)#

Scope of Appropriation#

Expenses and Revenue#

Components of the Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation enables the Department to provide timely, quality information to the Courts and the New Zealand Parole Board to enable them to make informed decisions about defendants and offenders. It also ensures that the Department is able to comply with legislative requirements for victim notifications, and provide administrative support functions to the New Zealand Parole Board.

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 Department of Corrections in its Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation decreased in 2014/15 as the Department transferred funding from 2012/13 to 2013/14 for costs relating to the Work Wear Project. This funding has not been appropriated in the Department's 2014/15 budget.

Prison-based Custodial Services (M18)#

Scope of Appropriation#

Expenses and Revenue#

Components of the Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation contributes to the safety of the community by ensuring that all persons detained in custody complete their sentence and comply with the specific restrictions of their sentence. It enables the Department to safely and securely contain those persons in accordance with legislative requirements and accepted international conventions, ensuring they are treated fairly and that their legitimate needs are met. This appropriation also ensures that the primary healthcare needs of persons detained in custody are met.

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 Department of Corrections in its Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

Those factors that have contributed to a reduction in appropriation funding for 2014/15 include:

• The Department transferred one-off funding, arising from efficiency savings achieved in 2012/13, to meet cost pressures in 2013/14. These costs are expected to be met within the 2014/15 budget.
• One-off costs associated with the June 2013 Spring Hill Riot and September 2010 Christchurch Earthquake were included in the 2013/14 budget. No additional provision has been made in the 2014/15 budget for these one-off events.
• The Department transferred one-off funding to 2013/14 for project related costs (for example: Staff Safety Project, Prisoner Clothing, Public Protection Orders) that were expected to be incurred later than anticipated. There is no funding for these in 2014/15 as it is expected that the Department will meet the on-going cost associated within these projects within the existing budget.

Rehabilitation and Reintegration (M18)#

Scope of Appropriation#

Expenses and Revenue#

Components of the Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation enables the Department to achieve a reduction in re-offending rates. It provides for the timely assessment of the rehabilitative and reintegrative needs of offenders and those remanded in custody. This appropriation ensures identified offender needs are addressed through rehabilitation, education, employment and reintegration activities.

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 Department of Corrections in its Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

Overall, this appropriation increased as a result of the Department making a one-off transfer of funding to the Justice Sector Fund. No provision has been made for a one-off transfer to occur in the 2014/15 budget.

Sentences and Orders Served in the Community (M18)#

Scope of Appropriation#

Expenses and Revenue#

Components of the Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation allows the Department to ensure that offenders serving a sentence or order in the community, or defendants that are being electronically monitored on bail, complete their sentences and orders and comply with the restrictions and requirements of the conditions of their sentence, order or bail. In the event of non-compliance this appropriation allows appropriate action to be taken to ensure the safety of the community.

This appropriation complements the Rehabilitation and Reintegration appropriation by enabling direct supervision, support and motivation of community-based offenders by probation officers to reduce an offender's risk of re-offending.

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 Department of Corrections in its Annual Report.

Current and Past Policy Initiatives#

2.3 - Departmental Capital Expenditure and Capital Injections#

Department of Corrections - Capital Expenditure PLA (M18)#

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation enables the Department to renew and replace its assets in support of the provision of the Department's outputs. The Department has a programme of work that is focused on upgrading its assets in response to changing service needs, in particular an upgrade of our Community Corrections Sites and the proposed capital investment at three prisons (Tongariro, Whanganui and Invercargill) during 2014/15. The appropriation also allows for the construction of a new 960 bed prison at Wiri in South Auckland.

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 Department of Corrections in its Annual Report.

Capital Injections and Movements in Departmental Net Assets

Department of Corrections

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

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Ministerial Services (M18)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Comparators for Restructured Appropriation

The previous MCOA Policy Advice and Ministerial Services has been converted to an MCA.

What is Intended to be Achieved with this Appropriation

This appropriation enables the Department to respond to ministerial requests and parliamentary questions. It also allows the Department to provide policy advice to support decision making by Ministers on government policy matters. Although the appropriation category has been reclassified the underlying activities performed under this appropriation are unchanged.

This Multi Category Appropriation provides core services to co-ordinate information provided to government and the public as well as developing policy that improves outcomes for New Zealand communities.

Ministerial Services

This category ensures that timely, accurate and relevant responses are provided to ministerial correspondence, parliamentary questions and requests for information made under the Official Information Act.

Policy Advice

This category enables the provision of meaningful advice and the development of robust policy that enhances service delivery and to contribute to the development of effective criminal justice legislation. This category also ensures that service activities intended to reduce re-offending are effectively evaluated and that information regarding those evaluations is available to inform decision making.

How Performance will be Assessed for this Appropriation

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

End of Year Performance Reporting

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

Current and Past Policy Initiatives

Reasons for Change in Appropriation

In 2013/14 this appropriation was classified as an MCOA. It has been reclassified as a MCA in 2014/15 in accordance with the Public Finance Amendment Act 2013.