Non-Departmental Expenditure and Capital Expenditure Appropriations

Schedule of Non-Departmental Expenditure and Capital Expenditure Against Appropriations

for the year ended 30 June 2010

ACTUAL
2008/09
$000


Appropriations for Expense Items
NOTE
ACTUAL
2009/10
$000
MAIN
ESTIMATES
2009/10
$000
SUPP.
ESTIMATES
2009/10
$000
  Vote Community and Voluntary Sector        
  Non-Departmental Output Expenses        
5,932  Charities-Administration 4,886 5,066 5,066
  Other Expenses to be Incurred by the Crown        
2,560 Community Development Scheme   2,560 2,560 2,560
421 Community Internship Programme 406 581 581
13,967 Community Organisation Grants Scheme   13,861 13,873 13,873
11,768 Community Partnership Fund *   0 0 0
150 Disarmament Education Grants   150 150 150
402 Support for Volunteering   402 402 402
0 Debt Write-Downs 151 0 151
194 Youth Workers Training Scheme 181 200 200
35,394 Total Appropriations   22,597 22,832 22,983
           
  Vote Emergency Management        
  Other Expenses to be Incurred by the Crown        
1,363 Emergency Expenses 4 1,805 100 7,562
889 Subsidies to Local Government   889 889 889
2,252 Total Appropriations   2,694 989 8,451
           
  Vote Internal Affairs        
  Non-Departmental Output Expenses        
1,960 Classification of Films, Videos and Publications   1,960 1,960 1,960
0 Development of On-Line Authentication Services   116 116 116
  Other Expenses to be Incurred by the Crown        
31 Miscellaneous Grants (Internal Affairs) 103 49 133
0 Reimbursing of holding costs 218 0 218
523 Public Inquiries 25 0 35
2,514 Total Appropriations   2,422 2,125 2,462
  Vote Local Government        
  Benefits and Other Unrequited Expenses        
52,597 Rates Rebate Scheme 4 44,039 65,000 55,000
  Other Expenses to be Incurred by the Crown        
1,828 Chatham Islands Council 4 1,613 3,064 3,467
128 Depreciation 137 147 147
1,500 Tuwharetoa Māori Trust Board   1,500 1,500 1,500
56,053 Total Appropriations   47,289 69,711 60,114
           
  Vote Ministerial Services        
  Benefits and Other Unrequited Expenses        
657  Annuities to Former Governors-General, Prime Ministers and Widows 520 475 537
  Other Expenses to be Incurred by the Crown        
131 Depreciation 132 137 137
7,922 Executive Council and Ministers’ Salaries and Allowances 7,868 7,720 7,920
19 Governors-General Pension Arrangements 15 20 20
11,278 Ministers’ Internal and External Travel 11,509 11,440 11,790
486 Travel for Former Governors-General and Prime Ministers 114 520 308
20,493 Total Appropriations   20,158 20,312 20,712
           
  Vote Racing        
  Other Expenses to be Incurred by the Crown        
2,976 Racing Promotion and Sponsorship Scheme   3,000 3,000 3,000
1,621 Racing Safety Development Fund 923 1,000 1,000
4,597 Total Appropriations   3,923 4,000 4,000
           
121,302 Total Non-Departmental Expenses   99,083 119,969 118,722
           
  Appropriations for Capital Expenditure        
           
  Vote Local Government        
  Capital Investment in Organisations other than Departments      
0  Auckland Transition Agency 4 24,239 0 30,473
  Purchase or Development of Capital Assets by the Crown      
169  Capital Investments – Lake Taupo   34 34 34
169 Total Appropriations for Capital Expenditure   24,273 34 30,507
           
121,471 Total Appropriations   123,356 120,003 149,229

The accompanying notes form part of these financial schedules. For a full understanding of the Crown’s financial position and the operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2010.

Details of Multi-year Appropriations

As there were no Multi-year Appropriations active during 2009/10, the following has been included for comparative purposes only.

In 2008/09 the Department had multi-year appropriations for other expenses to be incurred by the Crown for Vote Community and Voluntary Sector and non-departmental output expenditure for Vote Internal Affairs.

The Community Partnership Fund under Vote Community and Voluntary Sector was a contestable fund for the development of initiatives by partnerships that will improve capability and skills to use information and communication technology, and develop community driven requirements for digital content. This appropriation commenced on 1 July 2005 and finished on 30 June 2009.

The Significant Community-based Project Fund under Vote Internal Affairs was an appropriation to support major community-based projects that have a range of benefits contributing to regional and/or national outcomes with particular reference to arts, culture and heritage; sport and recreation; tourism; conservation and the environment; and economic development. This appropriation commenced on 1 July 2005 and finished on 30 June 2009.

Vote Community and Voluntary Sector
Vote Internal Affairs
Community
Partnership Fund
($000)
Significant Community Based Project Fund
($000)
MYA* commences 1 July 2005 1 July 2005
MYA expires 30 June 2009 30 June 2009
Original Appropriation 17,403 32,000
Adjustments 5,607 846
Total Appropriation 23,010 32,846
Actuals to 2005/06 Year End 0 19,254
Actuals to 2006/07 Year End 4,226 32,000
Actuals to 2007/08 Year End 11,242 32,846
Actuals to 2008/09 Year End 23,010 32,846

The accompanying notes form part of these financial schedules. For a full understanding of the Crown’s financial position and the operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2010.

* MYA = Multi-year appropriation

Unappropriated Expenditure

Schedule of Non-Departmental Unappropriated Expenditure and Capital Expenditure

for the year ended 30 June 2010

The Statement of Unappropriated Expenditure details the amount of expenditure incurred above appropriation.
2009/10 Unappropriated Expenditure against Main Estimates

There was no unappropriated expenditure against Main Estimates for the year ended 30 June 2010. (2008/09: $Nil).

2009/10 Unappropriated Expenditure against Supplementary Estimates

There was no unappropriated expenditure against Supplementary Estimates for the year ended 30 June 2010. (2008/09: $Nil).

Revenue and Expenditure

Non-Departmental Schedule of Revenue

for the year ended 30 June 2010

ACTUAL
2008/09
$000
Note
ACTUAL
2009/10
$000
MAIN
ESTIMATES
2009/10
$000
SUPP.
ESTIMATES
2009/10
$000
  Revenue 2,4  
166 Vote Community and Voluntary Sector 357 10 0
0 Vote Emergency Management 1,139 0 0
174 Vote Internal Affairs 107 0 0
1 Vote Local Government 125 0 0
5 Vote Ministerial Services 0 10 0
   
346 Total Revenue 1,728 20 0

The accompanying notes form part of these financial schedules. For a full understanding of the Crown’s financial position and the operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2010.

Non-Departmental Schedule of Expenditure

for the year ended 30 June 2010

ACTUAL
2008/09 $000
Note
ACTUAL
2009/10
$000
MAIN
ESTIMATES
2009/10
$000
SUPP.
ESTIMATES
2009/10
$000
  Expenditure  
35,394 Vote Community and Voluntary Sector 22,597 22,832 22,983
2,252 Vote Emergency Management 2,694 989 8,451
2,514 Vote Internal Affairs 2,422 2,125 2,462
56,053 Vote Local Government 47,289 69,711 60,114
20,492 Vote Ministerial Services 20,158 20,312 20,712
4,597 Vote Racing 3,923 4,000 4,000
121,302 Total Appropriated Expenditure 99,083 119,969 118,722
   
  Other Expenditure  
11,846 GST 3 12,780 13,072 14,598
   
133,148 Total Expenditure 111,863 133,041 133,320

The accompanying notes form part of these financial schedules. For a full understanding of the Crown’s financial position and the operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2010.

Assets and Liabilities

Schedule of Non-Departmental Assets

as at 30 June 2010

The Schedule of Assets summarises the assets the Department administers on behalf of the Crown.

ACTUAL
2008/09
$000
NOTE
ACTUAL
2010/10
$000
MAIN
ESTIMATES
2009/10
$000
SUPP.
ESTIMATES
2009/10
$000
  Assets    
  Current Assets  
55,193 Cash 30,563 17,466 26,266
238 Accounts Receivable 735 147 147
0 Loans 4 8,125 0 30,473
55,431 Total Current Assets 39,423 17,613 56,886
  Non Current Assets  
1,793 Investments in Crown Entities 1,793 1,793 1,793
8,250 Land -Ministerial Properties 9,950 8,250 8,250
4,954 Buildings – Ministerial Properties 5,222 4,094 4,817
4,865 Buildings – Lake Taupo Harbourmaster 4,763 5,016 4,854
19,862 Total Non Current Assets 21,728 19,153 19,714
   
75,293 Total Assets 61,151 36,766 76,600

The accompanying notes form part of these financial schedules. For a full understanding of the Crown’s financial position and the operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2010.

Land and Buildings

DTZ New Zealand Ltd (MREINZ), registered independent valuer, conducted a valuation of non-departmental Ministerial Properties land and buildings during April 2008 with valuations effective 30 June 2008. The Lake Taupo Boating Facilities have been revalued by DTZ New Zealand Ltd (MREINZ), registered independent valuer in May 2009 with valuations effective 30 June 2009.

The Ministerial Properties comprising of Premier House, Vogel House and Bolton Street are restricted for Government use. The carrying value of the land and buildings is $13,072,000. (2008/09: $13,204,000).

Investments in Crown Entities

The Department monitors a number of Crown entities. The investments in these entities are recorded within the Crown financial statements on a line-by-line basis except for the Charities Commission and Auckland Transition Agency.

Schedule of Non-Departmental Liabilities

as at 30 June 2010

The Schedule of Assets summarises the liabilities the Department administers on behalf of the Crown.

ACTUAL
2008/09
$000
ACTUAL
2009/10
$000
MAIN
ESTIMATES
2009/10
$000
SUPP.
ESTIMATES
2009/10
$000
  Liabilities  
  Current Liabilities  
30,405 Payables 11,072 1,853 11,848
30,405 Total Current Liabilities 11,072 1,853 11,848
  Term Liabilities  
10,498 Provisions 10,343 10,251 10,251
10,498 Total Term Liabilities 10,343 10,251 10,251
   
40,903 Total Liabilities 21,415 12,104 22,099

The accompanying notes form part of these financial schedules. For a full understanding of the Crown’s financial position and the operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2010.

Commitments

Year Ended 30 June 2010

Actual
2008/09
$000
Actual
2009/10
$000
  Other Operating Commitments  
0 Less than one year 796
0 One to two years 908
0 Two to five years 1,534
0 Total Other Operating Commitments 3,238
0 Total Commitments 3,238

The accompanying notes form part of these financial schedules. For a full understanding of the Crown’s financial position and the operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2010.

Contingent Assets and Liabilities

Schedule of Non-Departmental Contingent Assets and Liabilities as at 30 June 2010

Quantified Contingent Liabilities
Actual
2008/09
$000

Actual
2009/10
$000

91 Annuities 191
502 Emergency Responses 0
593 Total Contingent Liabilities 191

The accompanying notes form part of these financial schedules. For a full understanding of the Crown’s financial position and the operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2010.

Unquantified Contingent Liabilities

Year Ended 30 June 2010

There were no unquantified contingent liabilities for the year ended 30 June 2010.

Year Ended 30 June 2009

There were unquantified contingent liabilities for the year ended 30 June 2009 relating to various emergency responses.

Unquantified Contingent Assets

Year Ended 30 June 2010

There were no Contingent Assets for the year ended 30 June 2010.

Year Ended 30 June 2009

There were unquantified contingent assets representing potential refunds of emergency expenses paid to the Whangarei District Council and Far North District Council in relation to the Kaeo flooding.

Notes to the Financial Schedules

Notes to the Non-Departmental Financial Schedules

for the year ended 30 June 2010

Note 1

Statement of Accounting Policies
Reporting Entity

These non-departmental schedules and statements present financial information on public funds managed by the Department of Internal Affairs on behalf of the Crown.

These non-departmental balances are consolidated into the Financial Statements of the Government. For a full understanding of the Crown’s financial position, results of operations and cash flows for the year, reference should also be made to the consolidated Financial Statements of the Government.

Reporting Period

The reporting period for these financial schedules is the year ended 30 June 2010.

Basis of preparation

These financial statements have been prepared in accordance with New Zealand generally accepted accounting practice (NZ GAAP). They comply with New Zealand equivalents to IFRS (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for public benefit entities.

Budget Figures

The budget figures are those presented in the Budget 2009 Estimates of Appropriation (Main Estimates) and those amended by the Supplementary Estimates (Supp. Estimates).

Comparatives

When presentation or classification of items in the financial schedules are amended or accounting policies are changed voluntarily, comparative figures are restated to ensure consistency with the current period unless it is impracticable to do so.

Accounting policies

The non-departmental schedules have been prepared in accordance with the Government’s accounting policies as set out in the consolidated Financial Statements of the Government, and in accordance with relevant Treasury instructions and Treasury circulars.

The accrual basis of accounting has been used unless otherwise stated. These financial statements are presented in New Zealand dollars rounded to the nearest thousand.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

Significant Accounting Policies

The following particular accounting policies have been applied:

Revenue

Revenues from the supply of services are recognised when earned in the schedule of Revenue and Expenditure on a straight line basis over the specified period for the services.

Expenses

Where grants are discretionary the expense is recognised when the grant has been approved and approval has been communicated to the recipient, thereby creating a constructive obligation. Otherwise the expense is recognised when the specified criteria have been fulfilled and notice has been given to the Department.

Goods and Services Tax (GST)

Amounts in the financial schedules are reported exclusive of GST except for accounts receivable and accounts payable. GST input tax on non-departmental expenditure is expensed.

Financial Instruments

Designation of financial assets and financial liabilities is determined by the business purpose of the financial instruments, policies and practices for their management, their relationship with other instruments and the reporting costs and benefits associated with each designation.

Financial Assets

Cash includes cash in transit and bank accounts.

Accounts receivable have been designated as loans and receivables. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are recognised initially at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method. Loans and receivables entered into with a duration of less than 12 months are recognised at their nominal value. At each balance date, the Department assesses whether there is any objective evidence that loans and receivables are impaired. Any Impairment losses are recognised in the Schedule of Revenue and Expenses as bad debts.

Financial Liabilities

Financial liabilities are recognised initially at fair value less transaction costs and subsequently measured at amortised cost using the effective interest rate method.

Financial liabilities entered into with duration less than 12 months are recognised at their nominal value.

Property, Plant and Equipment

Revaluations are carried out for land and buildings to reflect the service potential or economic benefit obtained through control of these assets. Land and buildings are recorded at fair value less impairment losses and, for buildings, less depreciation accumulated since the assets were last revalued. Valuations undertaken in accordance with the standards issued by the New Zealand Property Institute are used.

Land and Buildings are revalued at least every five years or whenever the carrying amount differs materially to fair value. Unrealised gains and losses arising from changes in the value of land and buildings are recognised as at balance date. To the extent that a gain reverses a loss previously charged to the Schedule of Revenue and Expenditure for the asset class, the gain is credited to the Schedule of Revenue and Expenditure. Otherwise, gains are credited to an asset revaluation reserve for that class of asset. To the extent that there is a balance in the asset revaluation reserve for the asset class any loss is debited to the reserve. Otherwise, losses are reported in the Schedule of Revenue and Expenditure.

Accumulated depreciation at revaluation date is eliminated against the gross carrying amount so that the carrying amount after revaluation equals the revalued amount.

Realised gains and losses arising from disposal of land and property are recognised in the Schedule of Revenue and Expenditure in the period in which the transaction occurs.

The carrying amounts of land and property are reviewed at least annually to determine if there is any indication of impairment. Where an asset’s recoverable amount is less than its carrying amount, it will be reported at its recoverable amount and an impairment loss will be recognised. Losses resulting from impairment are reported in the Schedule of Revenue and Expenditure, unless the asset is carried at a revalued amount in which case any impairment loss is treated as a revaluation decrease.

Depreciation

Depreciation is charged on a straight-line basis at rates calculated to allocate the cost or valuation of an item of property, less any estimated residual value, over its estimated useful life. The estimated useful lives for buildings ranges from 10 to 50 years.

Other Liabilities and Provisions

Other liabilities and provisions are recorded at the best estimate of the expenditure required to settle the obligation. Liabilities and provisions to be settled beyond 12 months are recorded at their present value.

Commitments

Operating and capital commitments arising from non-cancellable contractual or statutory obligations are disclosed within the Schedule of Commitments to the extent that both parties have not performed their obligations.

Contingent Assets and Liabilities

Contingent assets and contingent liabilities are recorded in the Schedule of Contingent Assets and Contingent Liabilities at the point at which the contingency is evident. Contingent assets are disclosed if it is probable that the benefits will be realised. Contingent liabilities are disclosed if the possibility that they will crystallise is not remote.

Note 2

Revenue and Receipts

Revenue and receipts consists mainly of prior year’s grant refunds ($1.502 million), interest on loan to Auckland Transition Agency ($0.125 million) and fines & penalties ($0.101 million).

Note 3

GST Expense

Section 6 of the Public Finance Act 1989 provides authority for GST expenditure in relation to appropriated expenditure.

Note 4

Explanation of significant variances against budget

The significant variances within the Non-Departmental Schedule of Revenue are explained below:

Actual Revenue was $1.728 million higher than the Supplementary Estimates mainly due to the refund of grants from 2008/09 that were not required.

The significant variances for Appropriated Expenditure are explained below:

Vote Emergency Management
Other Expenses to be Incurred by the Crown

Emergency Expenses

The increase of $7.462 million between Main Estimates and Supplementary Estimates relates to assistance to Environment Bay of Plenty and Whakatane District Council for hazard mitigation work following civil defence emergency events in 2004 and 2005 ($5.011 million), an increase in the level of contingency funding for civil defence emergencies ($1.900 million), an expense transfer from 2008/09 to 2009/10 for assistance to homeowners affected by flooding in Kaeo ($0.500 million) and reimbursement of council response costs as a result of the July 2008 National Storm Event ($0.051 million).

The actual expenditure was $5.757 million lower than the Supplementary Estimates mainly due to:

  • a change in timing of expenditure for Environment Bay of Plenty and Whakatane District Council for hazard mitigation work ($3.238 million). An in-principle expense transfer was approved to transfer the unspent funding to 2010/11;
  • delays in the completion of the long-term mitigation plan to relocate or raise vulnerable houses in the Kaeo catchment and township ($0.500 million), for which an in-principle expense transfer was approved; and
  • the majority of the increase in contingency funding for emergency expenses was not required ($1.948 million).
Vote Local Government
Benefits and Other Unrequited Expenses

Rates Rebate Scheme

The decrease of $10.000 million between the Main Estimates and the Supplementary Estimates relates to a forecast decrease in demand.

The actual expenditure was $10.961 million lower than the Supplementary Estimates. This expenditure is demand driven and the take-up of the scheme in 2009/10 was lower than anticipated.

Other Expenses to be Incurred by the Crown

Chatham Islands Council

The actual expenditure was $1.854 million lower than the Supplementary Estimates due to delays in identifying suitable waste management sites. An in-principle expense transfer from 2009/10 to 2010/11 was approved for this under spend.

Purchase or Development of Capital Assets by the Crown

Loan to the Auckland Transition Agency

This appropriation was created in 2009/10 and the actual expenditure reflects the provision of a loan to the Auckland Transition Agency ($30.473 million).

The actual expenditure was $6.234 million lower than the Supplementary Estimates due to the Auckland Transition Agency’s loan requirements being lower than anticipated. An in-principle capital transfer was approved from 2009/10 to 2010/11 to reflect the change in timing of loan requirements.

The significant variances within the Schedule of Non-Departmental Assets are explained below:

The change in budget between Main Estimates and Supplementary Estimates relates to higher payables ($9.995 million) and accordingly higher cash ($8.800 million). The increase in loans of $30.473 million reflects the recognition of the Auckland Transition Agency (ATA) as a debtor, as a result of the loan to the ATA.

The actual loans were $22.348 million lower than the Supplementary Estimates. The actual loans reflect the amount owed by the Auckland Transition Agency (ATA) to the Department.

Trust Money Administered on Behalf of the Crown

Schedule of Trust Money Administered on Behalf of the Crown for the year ended 30 June 2010

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

The schedule 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.

Schedule Of Trust Money

Opening
Balance
2009/10
$000
Contributions
$000
Distributions
$000
Revenue
$000
Expenses
$000
Closing
Balance
2009/10
$000
Vogel House 1 0 0 1 (2) 0
New Zealand 1990 Scholarships 670 0 0 17 0 687
Total 671 0 0 18 (2) 687

The Vogel House Trust was established to hold bonds for the hireage of Vogel House and Premier House.

The New Zealand 1990 Scholarship Trust was established to provide scholarships for top overall students in University Bursaries examinations.