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The Department of Internal Affairs

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Notes to the Financial Statements
For the year ended 30 June 2005



Note 1

Revenue Third Parties
Actual
Actual
2004/05
2003/04
$000
$000
Passport Fees
28,103
26,986
Citizenship Fees
10,364
8,787
Birth, Death and Marriage Fees
9,558
9,473
Gaming Licences
9,432
1,609
Gaming Machine Fees *
70
5,255
Casino Operators' Levies
4,125
2,655
VIP Transport
5,670
5,737
Recovery from New Zealand Lottery Grants Board
6,443
6,885
New Zealand Gazette
846
844
Other
3,422
2,116
Total Revenue Third Parties
78,033
70,347
* In 2004/05 Gaming Machine Fees were included in the classification Gaming Licence Fees.




Note 2

Operating Expenses
Actual
Actual
2004/05
2003/04
$000
$000
Rental and Leasing Costs
8,361
7,776
Fee for Audit of Financial Statements
167
151
Fees to Auditors for Other Services Provided
14
9
Increase/(Decrease) in Provision for Doubtful Debts
22
2
Loss on Sale of Property, Plant and Equipment
68
33
Increase Provision for Obsolete Inventory
553
0
Other Departmental Operating Costs
57,224
49,531
Total Operating Expenses
66,409
57,502




Note 3

Depreciation
Actual
Actual
2004/05
2003/04
$000
$000
Buildings
76
68
Lease Improvements
549
393
Furniture and Fittings
29
29
Office Equipment
81
39
Motor Vehicles
675
684
Plant and Equipment
79
58
IT Equipment
3,236
2,592
Leased Assets
294
0
Total Depreciation
5,019
3,863


Note 4

Capital Charge

The Crown imposes a capital charge on the Department’s taxpayers’ funds as at
30 June and 31 December each year. The capital charge rate in the 2004/05 was 8.0%. (2003/04, 8.5%)



Note 5

Cash and Bank Balances
Actual
Actual
2004/05
2003/04
$000
$000
New Zealand Bank Account
31,183
25,126
Overseas Bank Accounts
Sydney
566
82
London
90
127
Total Cash and Bank Balances
31,839
25,335
Overseas bank accounts are shown in New Zealand dollars converted at the closing mid-point exchange rate.



Note 6

Accounts Receivable
Actual
Actual
2004/05
2003/04
$000
$000
Trade Receivables
3,209
1,926
Less Provision for Doubtful Debts
(37)
(15)
Total Accounts Receivable
3,172
1,911



Note 7

Inventories
Actual
Actual
2004/05
2003/04
$000
$000
Passports
Stock on hand
76
0
Work in Progress
354
340
Visits and Ceremonials
Liquor
116
118
Birth, Death and Marriage Certificates
15
13
Citizenship
Stock on hand
113
44
Work in Progress
1,327
1,016
Total Inventories
2,001
1,531



Note 8

Non Current Assets
Actual 2004/05
Actual 2003/04
Cost
Accum.
Carrying
Cost
Accum.
Carrying
and/ or
Deprec.
Amount
and/ or
Deprec.
Valuation
Valuation
Amount
$000
$000
$000
$000
$000
$000
Land at valuation
3,930
0
3,930
3,930
0
3,930
Buildings
Cost
22
1
21
0
0
0
Valuation
2,514
113
2,401
2,514
38
2,476
Lease Improvements
3,115
1,182
1,933
2,868
633
2,235
Antiques and Works of Art
Cost
0
0
0
27
0
27
Valuation
412
0
412
341
0
341
Furniture and Fittings
542
355
187
558
361
197
Office Equipment
685
368
317
659
390
269
Motor Vehicles
3,925
1,554
2,371
3,988
1,329
2,659
Plant and Equipment
960
563
397
1,127
661
466
IT Equipment
25,095
14,643
10,452
24,623
12,617
12,006
Capital Work in Progress
4,442
0
4,442
515
0
515
Total Property, Plant and Equipment
45,642
18,779
26,863
41,150
16,029
25,121
Leased Assets
Actual
Actual
2004/05
2003/04
Cost
Accum.
Carrying
Cost
Accum.
Carrying
Deprec.
Amount
Deprec.
Amount
$000
$000
$000
$000
$000
$000
Leased Assets
456
199
257
565
0
565
Total Leased Assets
456
199
257
565
0
565

Revaluation Basis
Valuations for land, buildings and antiques and works of art, were made on the basis of fair value determined by the highest and best use for these assets.

Land and Buildings
Valuation of land and buildings for Ministerial Services was conducted by DTZ New Zealand Ltd (MREINZ), registered independent valuer on 30 November 2003. Valuation of buildings located at Lake Taupo was also conducted by DTZ New Zealand Ltd (MREINZ), registered independent valuer on 4 May 2004.

Antiques and Works of Art
Valuation of antiques and works of art was undertaken by Dunbar Sloane, an independent expert, in May 2005.




Note 9

Lease liability
Actual
Actual
2004/05
2003/04
$000
$000
Finance Leases:
Current
217
322
Non current
40
243
Total
257
565
Repayable as follows:
One to two years (assume first year repayment)
239
348
Two to five years (assume second year onwards)
45
269
Beyond five years
0
0
Total
284
617
Future finance charges
(27)
(52)
Recognised as a liability
257
565
The effective interest rate on the finance leases over the lease period was 8.5%. Ownership of leased assets remains with the lessor.



Note 10

Accounts Payable
Actual
Actual
2004/05
2003/04
$000
$000
Accounts Payable
8,975
5,625
Accounts Payable for Property, Plant and Equipment
143
148
GST Payable
(515)
266
Total Accounts Payable
8,603
6,039






Note 11

Provisions
Actual
Actual
2004/05
2003/04
Re-organisation
Other
Total
Re-organisation
Other
Total
$000
$000
$000
$000
$000
$000
Opening Balance
549
833
1,382
0
1,056
1,056
Additional provisions made during the year
0
1,405
1,405
549
1,352
1,901
Charge against provision for the year
(424)
(430)
(854)
0
(1,575)
(1,575)
Closing Balance
125
1,808
1,933
549
833
1,382

The ‘Re-organisation’ provision ($0.125m) is the residual balance of the policy project (review of the Department’s policy capability and capacity) and business services review project. It is anticipated that the re-organisation will be fully completed by the end of 2005.

The ‘Other’ provision ($1.808m) relates primarily to:
    • The Chief Executive's Scholarship and Awards Programme
    • Estimated cost of obsolete passport stock and
    • Estimated cost of performance payments to staff.

The Chief Executive's Scholarship and Awards Programme is to fund study in New Zealand and overseas. The recipients of the scholarship and awards were approved by the Chief Executive on 28 June 2005 and the payments are expected to be made over the next 12 months.



Note 12

Accrued Expenses
Actual
Actual
2004/05
2003/04
$000
$000
Annual Leave
3,725
3,444
Accrued Salaries
275
0
Long Service and Retirement Leave
528
502
Accrued Expenses for Property, Plant and Equipment
64
581
Audit Fees
70
55
Other
5,047
5,485
Total Accrued Expenses
9,709
10,067





Note 13

Movements In Taxpayers Funds

Taxpayers’ funds represent the Crown’s net investment in the Department.

a) Provision for Payment of Surplus

The Department is required to return to the Crown its annual net surplus excluding Other Expenses.
Actual
Actual
2004/05
2003/04
$000
$000
Net Surplus as per Statement of Financial Performance
217
1,460
Realised Gain on Revaluation Reserve (Land)
0
140
Unrealised Gain on Revaluation of Buildings
0
(728)
Rounding Adjustment for Output Provision
0
(2)
Provision for Payment of Surplus
217
870

b) Capital Contribution

Actual
Actual
2004/05
2003/04
$000
$000
Weathertight Homes Resolution Service Database
600
0
Ruapehu Lahar Management
37
0
National Dog Control Database
1,314
0
Identity Set-up Costs for Civil Union Register
200
0
Identity Human Assisted Reproductive Technology Act 2004
200
0
Corporate IT Infrastucture
240
0
Total Capital Contribution
2,591
0



Note 14

Employee Entitlements

This represents long service and retirement leave, calculated on an actuarial basis, which is not considered payable in the next twelve months. The current portion is included in Accrued Expenses (Note 12). The assessment was undertaken for each employee as at 31 March 2005. Actuarial services were provided by Mercer HR Consulting Ltd, the report was prepared by Bobby Schoonraad, Fellow of the New Zealand Society of Actuaries.




Note 15

Taxpayers’ Funds

Taxpayers’ Funds comprise two components:

General Funds

Actual
Actual
2004/05
2003/04
$000
$000
General Funds as at 1 July
27,774
27,044
Net Surplus
217
1460
Capital Contribution
2,591
0
Net transfers from Revaluation Reserve
0
140
Provision for Payment of Surplus to the Crown
(217)
(870)
General Funds as at 30 June
30,365
27,774

Revaluation Reserve

Actual
Actual
2004/05
2003/04
Opening
Revaluation
Closing
Opening
Revaluation
Closing
Balance
Movement
Balance
Balance
Movement
Balance
$000
$000
$000
$000
$000
$000
Land
627
0
627
117
510
627
Antiques and Works of Art
141
49
190
141
0
141
Total Revaluation Reserve
768
49
817
258
510
768





Note 16

Financial Instruments

The Department is party to financial instrument arrangements as part of its daily operations. These include cash and bank balances, accounts receivable, accounts payable and provisions, accrued expenses, term accrued expenses and foreign currency forward contracts.

a) Currency Risk

Currency risk is the risk that accounts receivable and accounts payable due in foreign currency will fluctuate because of changes in foreign exchange rates. Foreign exchange forward contracts are used to manage foreign exchange exposures.

The Department maintains bank accounts denominated in foreign currencies. Balances are regularly cleared to minimise exposure risk.

b) Interest Rate Risk


Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. This could impact on the return on investment or the cost of borrowing.

Under section 46 of the Public Finance Act 1989, the Department cannot raise a loan without approval of the Minister of Finance. Office equipment leases are identified as finance leases in accordance with SSAP-18 Accounting for Leases and Hire Purchase Contracts. The Department has received the Minister of Finance approval for these leases. The fixed interest rate on the term of these leases reduces the exposure on borrowed funds.

c) Credit Risk

Credit risk is the risk that a third party will default on its obligations to the Department, causing the Department to incur a loss.

Financial instruments, which potentially subject the Department to credit risk, consist of cash and bank balances and trade receivables.

The Department banks with Treasury approved financial institutions.

Credit evaluations are undertaken on customers requiring credit. Collateral or other security is not generally required to support financial instruments with credit risk. Other than cash and bank balances and trade receivables, the Department does not have any significant credit risk.

Maximum exposures to credit risk.

Actual
Actual
2004/05
2003/04
$000
$000
Cash and bank balances
31,839
25,335
Accounts Receivable
3,172
1,911
Total
35,011
27,246

d) Fair Value

The fair value of all financial instruments other than foreign exchange contracts is equivalent to the carrying amount disclosed in the Statement of Financial Position.

The fair value of foreign exchange forward contracts at 30 June is calculated as the contract value converted at the closing spot rate. There were no foreign exchange forward contracts at balance date for 2003/04 and 2004/05.



Note 17
Departmental Appropriations and Expenditure – Explanation of Variances.

    Details of Appropriation and Expenditure variances greater than 5% for both actuals versus supplementary budget and supplementary budget versus main budget are included in Part 4 – Performance Information of this Annual Report.
      In addition, “The Supplementary Estimates of Appropriations for the year ending
      30 June 2005” contains an explanation of significant budget changes between the 2004/05 Main Estimates and 2004/05 Supplementary Estimates as set out below:


      a) Vote Internal Affairs

      Supplementary Estimates of Appropriations, B7 – Pages 310 to 311.

      b) Vote Emergency Management

      Supplementary Estimates of Appropriations, B7 – Page 186.

      c) Vote Local Government

      Supplementary Estimates of Appropriations, B7 – Page 348.

      d) Vote Ministerial Services

      Supplementary Estimates of Appropriations, B7 – Page 362.

      e) Vote Community and Voluntary Sector

      Supplementary Estimates of Appropriations, B7 – Page 88.

      f) Vote Racing

      Supplementary Estimates of Appropriations, B7 – Page 425.


      Note 18a

      Explanation of significant variance between Actual and Supplementary Estimates -Statement of Financial Performance

      Categories of Revenue and Expenditure with variance greater than 5% are Operating Expenses and Depreciation.

      Actual
      Supp.
      Estimates
      Variance
      Variance
      2004/05
      2004/05
      2004/05
      2004/05
      $000
      $000
      $000
      %
      Operating Expenses
      66,409
      72,103
      5,694
      8%
      Depreciation
      5,019
      5,333
      314
      6%

      Operating Expenses

      Identity Services
      Passport and Citizenship volumes were below budget. Budgeted levels are based on forecast volumes with an in-built contingency to ensure appropriations are not exceeded where volumes fluctuate.

      Weathertight Homes Resolution Service:
      Actual Professional Fees were lower than budget primarily due to delays in the resolution of claims.

      Policy Advice – Local Government:
      Operating Expenses were lower than budget due to:
        • Later than planned expenditure for local/central government interface facilitation project which will continue in 2005/06 and
        • Building of policy capability and capacity occurring later than planned due to the timing of recruitment.

      Information, Support and Regulation Services – Local Government:
      Operating Expenses were lower than budget primarily due to:
        • Operational activity on Law Reform, Dog Safety Education and Local Government Projects being later than planned. The funding for these activities will transfer 2005/06 and
        • Completion of the Single Transferable Vote (STV) Project, which provided the STV calculator and public education campaign at a cost lower than budget.


      Depreciation:
      This is due to delays in the timing of capital projects, see note 18b Property, Plant and Equipment



      Note 18b

      Explanation of significant variance between Actual and Supplementary Estimates -Statement of Financial Position

      Explanations are provided for variances in excess of $1million and greater than 5% of the Supplementary Estimates.

      Cash and Bank Balances ($17.619 million)
      Cash and bank balances were directly impacted by lower than budgeted Property, Plant and Equipment ($7.117m) and higher than budgeted Accounts Payable ($5.880m), and Revenue Received in Advance ($3.034m).

      Accounts Receivable ($1.950 million)
      Accounts receivable is significantly higher than budget due to the New Zealand Lottery Grants Board June receivable. This is an annual trend not reflected in the budget.

      Inventories ($1.390 million)
      Work in progress passport stock was increased to meet increased demand. This increased demand is also reflected in the Revenue Received in Advance provision noted below.

      Property, Plant and Equipment ($7.117 million)
      The variance is mainly due to the timing of IT expenditure for:
        • Passport systems that will continue in 2005/06
        • The development of a National Dog Control Database that has an extended completion date of September 2005 and
        • Relocation and Fit-out costs for the Department’s Christchurch offices that began in July 2005


      Accounts Payable ($5.880 million)
      Budgeted Accounts Payables was artificially low due to the treatment of a forecast deficit of $4.901m included in the Supplementary Estimates, see notes on General Fund below.

      Revenue Received in Advance ($3.034 million)
      Revenue Received in Advance variance was primarily due to increased demand for passports. This increased demand is reflected in Inventories (Work in Progress) noted above.

      General Fund ($4.901 million)
      This variance relates primarily to the forecast budget deficit of $4.901m. When the Supplementary Estimates budgets were completed, it was forecast that Information and Advisory Services ($0.100m), Gaming and Censorship Regulatory Services ($1.008m) and Identity Services ($3.785m) would run deficits and require a capital contribution by drawing down from the Memorandum Accounts.



      Note 18c

      Explanation of Significant Actual Variances - Statement of Cash Flows

      Purchases of Property, Plant and Equipment ($7.654 million)

      The variance is mainly delays to the timing of IT expenditure. See note 18b, Property, Plant and Equipment.



      Note 19

      Reconciliation Between Total Operating Expenses And Total Appropriations

      The financial information shown for each Output Class on the Statement of Service Performance and in the Statement of Departmental Appropriations and Expenditure includes revenue earned from other business units within the Department. The intra-entity charging reported at output class level has been eliminated from the other departmental financial statements.

      Actual
      Actual
      2004/05
      2003/04
      $000
      $000
      Total Operating Expenses in Statement of Financial Performance
      155,676
      138,402
      Revaluation Gain
      0
      (728)
      Intra-entity Expenditure
      587
      523
      GST on Revenue Crown
      9,730
      8,598
      GST on Revenue Third Parties
      9,754
      8,794
      GST on Intra-entity Revenue
      73
      65
      Total Appropriations in Statement of Departmental Appropriations and Expenditure
      175,820
      155,654



      Note 20

      Related Parties

      The Department of Internal Affairs is a government department and wholly owned and controlled by the Crown. The Department undertakes a number of trading activities with the Crown, other departments, Crown entities and State Owned Enterprises who are related parties as they are similarly related to the Crown.

      All material transactions are on an arms’ length basis, with the interests of each party being completely independent.




      Summary of Departmental Financial Results
      For the year ended 30 June 2005

      Unit
      Actual
      Actual
      2004/05
      2003/04
      Operating Results
      Revenue: Third Parties
      $000
      78,033
      70,347
      Revenue: Interest
      $000
      0
      0
      Total Operating Expenses
      $000
      155,676
      138,402
      Operating Surplus before
      Capital Charge
      $000
      2,500
      3,781
      Net Surplus/(Deficit)
      $000
      217
      1,460
      Working Capital
      Liquid Ratio
      2.23:1
      1.97:1
      Current Ratio
      1.15:1
      1.15:1
      Average Debtors Outstanding
      days
      11
      8
      Average Creditors Outstanding
      days
      32
      27
      Resource Utilisation
      Physical Assets:
      Physical Assets as % of
      Total Assets
      %
      42.18
      47.00
      Additions as % of
      Physical Assets
      %
      11.34
      34.89
      Taxpayers' Funds:
      Level at year-end
      $000
      31,182
      28,542
      Taxpayers' Funds as %
      of Total Assets
      %
      48.50
      52.22
      Net Cash Flows
      Surplus/(Deficit) from
      Operating Activities
      $000
      11,722
      11,182
      Surplus/(Deficit) from
      Investing Activities
      $000
      (6,939)
      (7,475)
      Net Increase/(Decrease)
      in Cash Held
      $000
      6,504
      (752)



      Non-Departmental Statement of Accounting Policies
      For the year ended 30 June 2005

      Measurement and recognition rules applied in the preparation of these non-departmental financial statements and schedules are consistent with generally accepted accounting practice and Crown Accounting Policies.

      Accounting Policies

      The following particular accounting policies, which materially affect the measurement of financial results and financial position, have been applied.

      Budget Figures

      The budget figures are those presented in the Budget Night Estimates (Main Estimates) and those amended by the Supplementary Estimates (Supp Estimates).

      Revenues and Receipts

      Revenues and Receipts are recognised when earned and are reported in the financial period to which they relate.

      Goods and Services Tax (GST)

      All Crown items are inclusive of GST.

      Assets and Liabilities

      All Assets and Liabilities are recognised at fair value.

      These non-departmental balances are consolidated into the Crown Financial Statements and therefore readers of these statements and schedules should also refer to the Crown Financial Statements for 2004/05.






      Non-Departmental Financial Statements and Schedules
      For the year ended 30 June 2005

      The following non-departmental statements and schedules record the revenue and receipts, expenses, assets and liabilities that the Department manages on behalf of the Crown.
      ACTUAL
      MAIN
      SUPP.
      ACTUAL
      ESTIMATES
      ESTIMATES
      2004/05
      2004/05
      2004/05
      2003/04
      $000
      $000
      $000
      $000
      Revenues and Receipts
      339
      10
      10
      39
      Expenses
      73,612
      43,353
      74,847
      46,130
      Assets
      18,838
      15,538
      16,316
      23,111
      Liabilities
      2,943
      1,686
      1,846
      2,254

      Details of the Department’s management of these Crown assets and liabilities are provided in the Output Performance sections of this report.






      Non-Departmental Schedule of Expenses
      For the year ended 30 June 2005

      The Schedule of Expenses summarises non-departmental expenses that the Department administers on behalf of the Crown. A detailed breakdown is provided in the Statement of Non-Departmental Expenditure and Appropriations and the Statement of Non-Departmental Unappropriated Expenditure.


      ACTUAL
      MAIN
      SUPP.
      ACTUAL
      ESTIMATES
      ESTIMATES
      2004/05
      2004/05
      2004/05
      2003/04
      $000
      $000
      $000
      $000
      Vote Internal Affairs
      Non-Departmental Output Classes
      2,205
      2,205
      2,205
      2,205
      Other Expenses to be Incurred by the Crown
      5,068
      232
      5,232
      76
      Total Non-Departmental Expenses
      7,273
      2,437
      7,437
      2,281
      Vote Emergency Management
      Other Expenses to be Incurred by the Crown
      20,121
      1,112
      19,872
      6,808
      Total Non-Departmental Expenses
      20,121
      1,112
      19,872
      6,808
      Vote Local Government
      Benefits and Other Unrequited Expenses
      498
      950
      950
      585
      Other Expenses to be Incurred by the Crown
      14,029
      6,917
      14,036
      7,480
      Purchase or Development of Capital Assets by the Crown
      34
      34
      334
      0
      Depreciation
      171
      165
      165
      165
      Total Non-Departmental Expenses
      14,732
      8,066
      15,485
      8,230
      Vote Ministerial Services
      Benefits and Other Unrequited Expenses
      317
      297
      327
      296
      Other Expenses to be Incurred by the Crown
      15,588
      15,625
      15,760
      15,021
      Depreciation
      108
      111
      111
      92
      Total Non-Departmental Expenses
      16,013
      16,033
      16,198
      15,409
      Vote Community and Voluntary Sector
      Non-Departmental Output Classes
      401
      473
      473
      473
      Other Expenses to be Incurred by the Crown
      15,072
      15,232
      15,382
      14,667
      Total Non-Departmental Expenses
      15,473
      15,705
      15,855
      15,140
      Total Non-Departmental Expenses
      73,612
      43,353
      74,847
      47,868


      Schedule of Non-Departmental Expenditure and Appropriations
      For the year ended 30 June 2005

      The Schedule of Non-Departmental Expenditure and Appropriations details expenditure and capital payments incurred against appropriations. The Department administers these appropriations on behalf of the Crown.

      (Figures are GST inclusive)
      NOTE
      ACTUAL
      MAIN
      SUPP.
      ACTUAL
      ESTIMATES
      ESTIMATES
      2004/05
      2004/05
      2004/05
      2003/04
      $000
      $000
      $000
      $000
      Vote Internal Affairs
      21a
      Non-Departmental Output Classes
      Classification of Films, Videos and Publications
      2,205
      2,205
      2,205
      2,205
      Other Expenses to be Incurred by the Crown
      Miscellaneous Grants (Internal Affairs)
      22a
      26
      48
      48
      47
      Commission of Inquiry into Police Conduct
      22b
      41
      183
      183
      28
      Royal Life Saving Commonwealth Council
      1
      1
      1
      1
      Chinese Poll Tax Reconciliation
      5,000
      0
      5,000
      0
      Total Appropriations
      7,273
      2,437
      7,437
      2,281
      Vote Emergency Management
      21b
      Other Expenses to be Incurred by the Crown
      Emergency Expenses
      11,469
      48
      11,469
      730
      Subsidies to Local Government
      1,000
      1,000
      1,000
      1,000
      Manawatu Mayoral Relief Fund
      0
      0
      0
      120
      Rangitikei Mayoral Relief Fund
      0
      0
      0
      120
      South Taranaki Mayoral Relief Fund
      0
      0
      0
      20
      Wanganui Mayoral Relief Fund
      0
      0
      0
      20
      Horowhenua Mayoral Relief Fund
      0
      0
      0
      20
      Hutt City Mayoral Relief Fund
      0
      0
      0
      20
      Marlborough Mayoral Relief Fund
      0
      0
      0
      20
      Kapiti Coast Mayoral Relief Fund
      0
      0
      0
      20
      Donations Relief Fund
      2,805
      0
      2,805
      4,718
      RDC Lahar Monitoring
      64
      64
      64
      0
      Opotiki Mayoral Relief
      20
      0
      20
      0
      Thames Coast Properties
      690
      0
      690
      0
      Floodway Works
      890
      0
      890
      0
      Flood Relief Donation BoP
      2,037
      0
      2,038
      0
      Kiwitea Catchment Scheme
      826
      0
      826
      0
      Greymouth Mayoral Relief
      50
      0
      50
      0
      Whakatane Mayoral Relief
      45
      0
      20
      0
      Tauranga Mayoral Relief Fund
      25
      0
      0
      0
      Western Bay of Plenty Mayoral Relief Fund
      25
      0
      0
      0
      Joint Mayoral Relief Fund
      175
      0
      0
      0
      Total Appropriations
      20,121
      1,112
      19,872
      6,808
      Vote Local Government
      21c
      Benefits and Other Unrequited Expenses
      Rates Rebate Scheme
      22c
      498
      950
      950
      585
      Other Expenses to be Incurred by the Crown
      Tuwharetoa Maori Trust Board
      160
      167
      167
      167
      Grey District Council - Sewage Upgrade Assistance
      0
      0
      0
      2,813
      Flood Compensation for Rates Remitted
      6,750
      6,750
      6,750
      4,500
      BoP Rates Remitted
      3,375
      0
      3,375
      0
      Chatham Islands Council
      3,744
      0
      3,744
      0
      Purchase or Development of Capital Assets by the Crown
      Capital Investments - Lake Taupo
      22d
      34
      34
      334
      0
      Total Appropriations
      14,561
      7,901
      15,320
      8,065
      Total Depreciation
      171
      165
      165
      165
      Vote Ministerial Services
      21d
      Other Expenses to be Incurred by the Crown
      Ministers' Internal and External Travel
      9,210
      9,235
      9,235
      8,981
      Travel for Former Governors General and Prime Ministers
      312
      300
      325
      293
      Executive Council and Ministers' Salaries and Allowances
      6,048
      6,070
      6,180
      5,729
      Governors General Pension Arrangements
      22e
      18
      20
      20
      18
      Benefits and Other Unrequited Expenses
      Annuities to Former Governors General, Prime Ministers and Spouses
      317
      297
      327
      296
      Total Appropriations
      15,905
      15,922
      16,087
      15,317
      Total Depreciation
      108
      111
      111
      92
      Vote Community and Voluntary Sector
      21e
      Non-Departmental Output Classes
      Community Based Youth Development Fund
      22f
      401
      473
      473
      473
      Other Expenses to be Incurred by the Crown
      Community Organisation Grants Scheme
      12,326
      12,355
      12,355
      12,352
      Community Project Workers Scheme
      22g
      1,487
      1,727
      1,727
      1,187
      Youth Workers Training Scheme
      193
      200
      200
      200
      Maori Community Development Workers
      200
      200
      200
      200
      Support for Volunteering
      439
      450
      450
      450
      Community Internship Programme
      22h
      277
      300
      300
      278
      Disarmament Education
      150
      0
      150
      0
      Total Appropriations
      15,473
      15,705
      15,855
      15,140
      Total Appropriations
      73,333
      43,077
      74,571
      47,611
      Total Depreciation
      279
      276
      276
      257
      Total Non-Departmental Expenses
      73,612
      43,353
      74,847
      47,868
      The accompanying accounting policies are an integral part of these financial statements and schedules.




      Statement of Non-Departmental Unappropriated Expenditure
      For the year ended 30 June 2005

      The Statement of Unappropriated Expenditure details the amount of expenditure incurred above appropriation.

      (Figures are GST inclusive)
      NOTE
      ACTUAL
      ACTUAL
      2004/05
      2003/04
      $000
      $000
      Vote Emergency Management
      21b
      Whakatane Mayoral Relief
      25
      0
      Tauranga Mayoral Relief Fund
      25
      0
      Western Bay of Plenty Mayoral Relief Fund
      25
      0
      Joint Mayoral Relief Fund
      175
      0
      Total Appropriations
      250
      0

      Government Assistance Package [CAB Min (05) 19/1C]
      In May 2005 flooding and landslips occurred in the Bay of Plenty Area. On 30th May 2005, subsequent to finalisation of the Supplementary Estimates, Cabinet approved a government assistance package of $0.250m for the Bay of Plenty. The expenditure was approved by the Minister of Finance under the Public Finance Act 1989.

      The accompanying accounting policies are an integral part of these financial statements and schedules.



      Schedule of Non-Departmental Assets
      As at 30 June 2005

      The Schedule of Assets summarises the assets the Department administers on behalf of the Crown.
      ACTUAL
      MAIN
      SUPP.
      ACTUAL
      ESTIMATES
      ESTIMATES
      2004/05
      2004/05
      2004/05
      2003/04
      $000
      $000
      $000
      $000
      Vote Local Government
      Buildings
      2,415
      1,821
      2,421
      2,591
      0
      Total Non-Departmental Assets
      2,415
      1,821
      2,421
      2,591
      Vote Ministerial Services
      Accounts Receivable
      173
      46
      32
      13
      Land
      5,700
      5,700
      5,700
      5,700
      Buildings
      3,444
      3,435
      3,435
      3,546
      Total Non-Departmental Assets
      9,317
      9,181
      9,167
      9,259
      Other Votes
      Cash
      7,106
      4,536
      4,728
      11,261
      Total Assets
      18,838
      15,538
      16,316
      23,111


      Schedule of Non-Departmental Liabilities
      As at 30 June 2005

      The Schedule of Liabilities summarises the liabilities the Department incurs on behalf of the Crown.
      ACTUAL
      MAIN
      SUPP.
      ACTUAL
      ESTIMATES
      ESTIMATES
      2004/05
      2004/05
      2004/05
      2003/04
      $000
      $000
      $000
      $000
      Vote Ministerial Services
      Payables
      1,413
      809
      886
      1,090
      Total Liabilities
      1,413
      809
      886
      1,090
      Vote Community and Voluntary Sector
      Payables
      1,530
      877
      960
      1,164
      Total Liabilities
      1,530
      877
      960
      1,164
      Total Liabilities
      2,943
      1,686
      1,846
      2,254
      The accompanying accounting policies are an integral part of these financial statements and schedules.




      Statement of Non-Departmental Commitments
      As at 30 June 2005

      Actual
      Actual
      2004/05
      2003/04
      $000
      $000
      Operating Commitments
      Non-Cancellable Contracts for Goods and Services
      - Less than one year
      2
      2
      Total Goods and Services Commitments
      2
      2
      Total Commitments
      2
      2


      Statement of Non-Departmental Contingent Assets and Liabilities
      As at 30 June 2005

      There were no Contingent Assets or Liabilities for the year ended 30 June 2005 or the previous year.


      The accompanying accounting policies are an integral part of these statements and schedules.





      Notes to the Non-Departmental Financial Statements
      As at 30 June 2005

      Note 21

      Explanation of Significant Budget Changes

      Refer to “The Supplementary Estimates of Appropriations for the year ended 30 June 2005” for an explanation of significant budget changes between the 2004/05 Main Estimates and 2004/05 Supplementary Estimates as set out below:

      a) Vote Internal Affairs

      Supplementary Estimates of Appropriations, B7 – Pages 312 and 313.

      b) Vote Emergency Management

      Supplementary Estimates of Appropriations, B7 – Page 187.

      c) Vote Local Government

      Supplementary Estimates of Appropriations, B7 – Page 349.

      d) Vote Ministerial Services

      Supplementary Estimates of Appropriations, B7 – Page 363.

      e) Vote Community and Voluntary Sector

      Supplementary Estimates of Appropriations, B7 – Pages 89.





      Note 22

      Explanation of Significant Actual Variances

      The following notes explain the significant variances between the Supplementary Estimates and Actuals. Explanations are provided for variances greater than 5%.

      ACTUAL
      SUPP.
      Underspend /
      Underspend /
      ESTIMATES
      (Overspend)
      (Overspend)
      2004/05
      2004/05
      2004/05
      2004/05
      $000
      $000
      $000
      %
      Vote Internal Affairs
      a) Miscellaneous Grants (Internal Affairs) 26
      48
      22
      45.83%
      b) Commission of Inquiry into Police Conduct 41
      183
      142
      77.60%
      Vote Local Government
      c) Rates Rebate Scheme 498
      950
      452
      47.58%
      d) Capital Investments - Lake Taupo 34
      334
      300
      89.82%
      Vote Ministerial Services
      e) Governors General Pension Arrangements 18
      20
      2
      10.00%
      Vote Community and Voluntary Sector
      f) Community Based Youth Development Fund 401
      473
      72
      15.22%
      g) Community Project Workers Scheme 1,487
      1,727
      240
      13.90%
      h) Community Internship Programme 277
      300
      23
      7.67%

      a) Miscellaneous Grants (Internal Affairs) is demand driven.

      b) Delays in the Commission sitting have resulted in this surplus. The Commission is now proceeding with a new extension date of March 2006. Funding has been approved by Cabinet for the 2005/06 financial year.

      c) The Rates Rebate Scheme is demand driven. Fewer claims than budgeted were received during the 2004/05 year.

      d) The variance of $0.300m for Lake Taupo Capital Investments relates to breastwork reparation for Taupo boat harbour. Funding will be transferred for completion of work in 2005/06.

      e) The underspend on Governors General Pension Arrangements relates to the pension of one Ex Governor General.

      f) Community Based Youth Development Fund was underspent due to the late withdrawal of applications for grants. This left insufficient time to re-allocate the funds.

      g) Community Project Workers Scheme was underspent due to delays in establishing agreed contracts for new projects. This funding will transfer to 2005/06 for completion of the projects

      h) Community Internship Programme was underspent due to the late return of allocated grant money. This left insufficient time to re-allocate the funds.






      Statement of Trust Money Administered on behalf of the Crown
      For the year ended 30 June 2005

      The following trust money was administered on behalf of the Crown under Part VII of the Public Finance Act 1989.

      The statement shows the opening and closing trust balances including bank and investments at cost, and the movements during the year.

      Under the Public Finance Act 1989 and by delegation from the Secretary to The Treasury, trust money can only be invested on deposit with New Zealand registered banks or in New Zealand government stock. Trust money is also managed so there is no significant concentration of credit risk. Interest rate risk is managed by investing across a wide range of maturity dates, but subject to liquidity requirements.

      Opening
      Contributions
      Distributions
      Revenue
      Expenses
      Closing
      Balance
      Balance
      2004/05
      2004/05
      $000
      $000
      $000
      $000
      $000
      $000
      Vogel House
      0
      1
      (1)
      0
      0
      0
      NZ 1990 Scholarships
      391
      0
      0
      25
      0
      416
      Problem Gambling
      28
      23
      (53)
      3
      (1)
      0
      Total
      419
      24
      (54)
      28
      (1)
      416


      The accompanying accounting policies are an integral part of these statements and schedules.

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