Supplementary estimates of appropriations

Vote Corrections - Supplementary Estimates 2016/17

Publication type:
Supplementary estimates of appropriations
Status:
Superseded
Document (signed) date:
Issue date:
Part of:
Corporate author:
Government of New Zealand
Viewpoint:
Government
Publication category:
Budgets of the government
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
Fiscal year:
2016/17
Budget year:
2017
Budget vote:
Corrections

Formats and related files

APPROPRIATION MINISTER(S): Minister of Corrections (M18)

APPROPRIATION ADMINISTRATOR: Department of Corrections

RESPONSIBLE MINISTER FOR DEPARTMENT OF CORRECTIONS: Minister of Corrections

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2016/17
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000		 Supplementary
Estimates
Budget
$000		 Total
Budget
$000

Departmental Output Expenses

      

Re-offending is Reduced (M18)

This appropriation is limited to the provision of rehabilitation interventions and reintegration services to offenders serving custodial and community-based sentences that address the underlying causes of criminal offending and reduce re-offending.		 182,187 8,681 190,868

Total Departmental Output Expenses

 182,187 8,681 190,868

Departmental Capital Expenditure

      

Department of Corrections - Capital Expenditure PLA (M18)

This appropriation is limited to 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.		 412,195 (89,101) 323,094

Total Departmental Capital Expenditure

 412,195 (89,101) 323,094

Multi-Category Expenses and Capital Expenditure

      

Policy Advice and Ministerial Services MCA (M18)

The single overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.		 2,687 945 3,632
Departmental Output Expenses
      
Ministerial Services
This category is limited to Department responses to ministerial correspondence and parliamentary questions.		 1,041 944 1,985
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.		 1,646 1 1,647

Public Safety is Improved MCA (M18)

The single overarching purpose of this appropriation is to manage offenders serving custodial and community-based sentences in a manner so as to improve the safety of offenders, staff, victims and the public.		 1,167,910 (5,526) 1,162,384
Departmental Output Expenses
      
Information and administrative services to the judiciary and New Zealand Parole Board
This category is limited to 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.		 59,196 (230) 58,966
Prison-based Custodial Services
This category is limited to the provision of custodial services including under long-term service contracts and Public Private Partnerships 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 offenders required to be lawfully detained in custody.		 899,610 (5,129) 894,481
Sentences and orders served in the community
This category is limited to the management and delivery of sentences and orders served in the community, and electronic monitoring of people on bail.		 209,104 (167) 208,937

Total Multi-Category Expenses and Capital Expenditure

 1,170,597 (4,581) 1,166,016

Total Annual and Permanent Appropriations

 1,764,979 (85,001) 1,679,978

Capital Injection Authorisations#

  2016/17
  Estimates Budget
$000		 Supplementary
Estimates Budget
$000		 Total Budget
$000
Department of Corrections - Capital Injection (M18) 1,654 20,346 22,000

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2016/17
    Supplementary Estimates  
  Estimates
$000		 Departmental
Transactions
$000		 Non-Departmental
Transactions
$000		 Total
Transactions
$000		 Total
$000

Appropriations

          
Output Expenses 182,187 8,681 - 8,681 190,868
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses - - - - -
Capital Expenditure 412,195 (89,101) - (89,101) 323,094
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 1,170,597 (4,581) - (4,581) 1,166,016
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

 1,764,979 (85,001) - (85,001) 1,679,978

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#

Re-offending is Reduced (M18)

Scope of Appropriation

This appropriation is limited to the provision of rehabilitation interventions and reintegration services to offenders serving custodial and community-based sentences that address the underlying causes of criminal offending and reduce re-offending.

Expenses and Revenue

  2016/17
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 182,187 8,681 190,868
Revenue from the Crown 152,493 6,663 159,156
Revenue from Others 29,694 (5,935) 23,759

Reasons for Change in Appropriation

This appropriation increased by $8.681 million to $190.868 million for 2016/17 due to:

  • $10.140 million of new Justice Sector funding for interventions and rehabilitative activity including Enhanced Mental Health Support Services, This Way for Work and Stopping Drink Driving by Integrating Technology with Interventions
  • $2.210 million of expense transfers to 2016/17 mainly relating to the Out of Gate initiative
  • $1.774 million one-off funding for the de-recognition of Tongariro/Rangipo assets following Treaty settlement land sale on 30 June 2015
  • $1.070 million for the Proceeds of Criminal Funding initiative Methamphetamine Targeted Screening and Rehabilitation for Prisoners, and
  • $244,000 of forecasting adjustments relating to the secondment of staff to other Government Departments, partly offset by
  • $5.146 million of fiscally neutral adjustments to other appropriations to align the resource requirements with demand and activities, in particular cost pressures associated with the rising prison population, and
  • $1.611 million decrease in Capital Charge funding mainly reflecting a 2% rate reduction.

2.3 - Departmental Capital Expenditure and Capital Injections#

Department of Corrections - Capital Expenditure PLA (M18)#

Scope of Appropriation

This appropriation is limited to 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.

Capital Expenditure

  2016/17
  Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 191,543 (79,308) 112,235
Intangibles 27,793 (9,793) 18,000
Other 192,859 - 192,859

Total Appropriation

 412,195 (89,101) 323,094

Reasons for Change in Appropriation

The Department has revised its capital plan to reflect the impact of the Prison Capacity Programme increasing the available prison capacity to accommodate the rising prison population.

Department of Corrections

Details of Net Asset Schedule 2016/17
Main Estimates Projections
$000		 2016/17
Supplementary Estimates Projections
$000		 Explanation of Projected Movements in 2016/17
Opening Balance 2,432,616 2,349,980 Supplementary Estimates opening balance reflects the audited results as at 30 June 2016.
Capital Injections 1,654 22,000 Additional funding to increase prison capacity.
Capital Withdrawals (72,000) (5,600) Variance mainly due to $70.0 million being paid in 2015/16, earlier than planned due to surplus cash reserves, and the return of $3.6 million surplus Justice Sector Funds to the Crown.
Surplus to be Retained (Deficit Incurred) - 5,357 The 2016/17 forecasted surplus largely relates to the un-realised year to date fair value movement on the Departments interest rate swap entered into with NZDMO to manage risk relating to public private partnership transactions, partly offset by the de-recognition of Tongariro/Rangipo assets following Treaty settlement land sale on 30 June 2015.
Other Movements - -  

Closing Balance

 2,362,270 2,371,737  

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

The single overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.

Scope of Appropriation

Departmental Output Expenses
Ministerial Services
This category is limited to Department responses to ministerial correspondence and parliamentary questions.
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.

Expenses, Revenue and Capital Expenditure

  2016/17
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

 2,687 945 3,632

Departmental Output Expenses

      
Ministerial Services 1,041 944 1,985
Policy Advice 1,646 1 1,647

Funding for Departmental Output Expenses

      

Revenue from the Crown

 2,687 944 3,631
Ministerial Services 1,041 944 1,985
Policy Advice 1,646 - 1,646

Revenue from Others

 - 1 1
Policy Advice - 1 1

Reasons for Change in Appropriation

This appropriation increased by $945,000 to $3.632 million for 2016/17 mainly due to an increase in resources combined with higher volumes to provide responses to ministerial correspondence and parliamentary questions.

Public Safety is Improved (M18)#

Overarching Purpose Statement#

The single overarching purpose of this appropriation is to manage offenders serving custodial and community-based sentences in a manner so as to improve the safety of offenders, staff, victims and the public.

Scope of Appropriation#

Departmental Output Expenses

Information and administrative services to the judiciary and New Zealand Parole Board
This category is limited to 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.
Prison-based Custodial Services
This category is limited to the provision of custodial services including under long-term service contracts and Public Private Partnerships 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 offenders required to be lawfully detained in custody.
Sentences and orders served in the community
This category is limited to the management and delivery of sentences and orders served in the community, and electronic monitoring of people on bail.

Expenses, Revenue and Capital Expenditure#

  2016/17
  Estimates
$000		 Supplementary Estimates
$000		 Total
$000

Total Appropriation

 1,167,910 (5,526) 1,162,384

Departmental Output Expenses

      
Information and administrative services to the judiciary and New Zealand Parole Board 59,196 (230) 58,966
Prison-based Custodial Services 899,610 (5,129) 894,481
Sentences and orders served in the community 209,104 (167) 208,937

Funding for Departmental Output Expenses

      

Revenue from the Crown

 1,164,716 (16,405) 1,148,311
Information and administrative services to the judiciary and New Zealand Parole Board 59,196 (270) 58,926
Prison-based Custodial Services 896,416 (15,832) 880,584
Sentences and orders served in the community 209,104 (303) 208,801

Revenue from Others

 3,194 1,931 5,125
Information and administrative services to the judiciary and New Zealand Parole Board - 40 40
Prison-based Custodial Services 3,194 1,755 4,949
Sentences and orders served in the community - 136 136

Reasons for Change in Appropriation#

This appropriation decreased by $5.526 million to $1,162.384 million for 2016/17 due to:

  • $34.540 million decrease in Capital Charge funding mainly reflecting a 2% rate reduction, largely offset by
    • $8.948 million one-off funding for the de-recognition of Tongariro/Rangipo assets following Treaty settlement land sale on 30 June 2015
    • $8.350 million funding for the impact of increased prisoner volumes
    • $5.534 million of expense transfers to 2016/17 mainly relating to costs associated with transitioning the operation of Mount Eden Corrections Facility
    • $4.202 million of net fiscally neutral adjustments to align the resource requirements with demand and activities, in particular cost pressures associated with the rising prison population, and
    • $1.980 million of forecasting adjustments relating to the secondment of staff to other Government Departments as well as deployments to Samoa, Vanuatu and Pitcairn Island.