Resource material › Corporate Publications › Annual Report 2013-14Pūrongo ā Tau
Part D: Financial Statements – Non-Departmental
On this page
- Expenditure and Capital Expenditure Against Appropriations
- Unappropriated Expenditure
- Revenue and Expenditure
- Assets and Liabilities and Revaluation Reserves
- Non-Departmental Commitments
- Non-Departmental Contingent Assets and Liabilities
- Notes to the Non-Departmental Financial Schedules
- Trust Money Administered on Behalf of the Crown
Non-Departmental Statements and Schedules for the year ended 30 June 2014
The following non-departmental statements and schedules record the income, expenses, assets, liabilities, commitments, contingent liabilities, contingent assets, and trust accounts that the Department manages on behalf of the Crown.
Expenditure and Capital Expenditure Against Appropriation
| ACTUAL 2013 $000 |
ACTUAL 2014 $000 |
MAIN EST 2014 $000 |
SUPP EST 2014 $000 |
|
|---|---|---|---|---|
| Non-Departmental Expenses | ||||
| Vote Internal Affairs | ||||
| Non-Departmental Output Expenses | ||||
| 1,960 | Classification of Films, Videos and Publications | 1,960 | 1,960 | 1,960 |
| 116 | Development of On-Line Authentication Services | 116 | 116 | 116 |
| 1,991 | Public Lending Right for New Zealand Authors | 1,997 | 2,000 | 2,000 |
| Benefits and Other Unrequited Expenses | ||||
| 53,347 | Rates Rebate Scheme | 50,789 | 55,550 | 55,550 |
| Other Expenses to be Incurred by the Crown | ||||
| 3,387 | Chatham Islands Council | 3,220 | 2,233 | 3,220 |
| 4,297 | Community Development Scheme | 2,320 | 4,215 | 2,320 |
| 147 | Community Internship Programme | 27 | 231 | 27 |
| 12,491 | Community Organisation Grants Scheme | 1,603 | 12,500 | 1,603 |
| 719 | Crown-owned Assets at Lake Taupo – Maintenance Costs | 417 | 2,247 | 1,416 |
| 13 | Debt Write-down | 41 | – | 42 |
| 192 | Depreciation on Official Residences | 192 | 193 | 193 |
| 3,881 | Digital Literacy and Connection | 3,723 | 2,123 | 3,723 |
| 150 | Disarmament Education Grants | 143 | 150 | 143 |
| 9,840 | Emergency Expenses | 1,805 | 2,000 | 1,805 |
| 9,015 | Executive Council and Members of the Executive – Salaries and Allowances PLA | 9,278 | 8,940 | 9,285 |
| 41 | February 2011 Christchurch Earthquake National Controller Costs | 21 | – | 21 |
| 443 | Former Governors-General – Annuities and Other Payments PLA | 429 | 456 | 456 |
| 159 | Former Prime Ministers – Annuities PLA | 164 | 168 | 171 |
| 143 | Former Prime Ministers – Domestic Travel | 198 | 270 | 270 |
| 11,696 | Members of the Executive – Travel | 11,770 | 11,790 | 11,790 |
| 9 | Miscellaneous Grants – Internal Affairs | 49 | 49 | 49 |
| 41 | Pike River Royal Commission of Inquiry – Legal Representation and Assistance | – | – | – |
| – | Pitt Island Wharf Reconstruction Project | 5,000 | – | 5,000 |
| 597 | Public Inquiries | 395 | – | 486 |
| 988 | Racing Safety Development Fund | 946 | 1,000 | 1,000 |
| (5,415) | Release of funds previously applied to Canterbury Earthquake – Payments in respect of Indemnity for Response and Recovery Costs | (64) | – | – |
| 792 | Subsidies to Local Government | 59 | 889 | 59 |
| 498 | Support for Volunteering | 502 | 502 | 502 |
| – | Te Oneroa a Tohe Beach Management | – | – | 400 |
| 1,500 | Tuwharetoa Māori Trust Board PLA | 1,500 | 1,500 | 1,500 |
| 199 | Youth Workers Training Scheme | 167 | 200 | 167 |
| Multi Category Appropriation: Community Funding Schemes | ||||
| – | Community Development Scheme | 894 | – | 2,752 |
| – | Community Internship Programme | 193 | – | 204 |
| – | Community Organisation Grants Scheme | 10,823 | – | 10,897 |
| – | Disarmament Education Grants | – | – | 7 |
| – | Youth Workers Training Scheme | 28 | – | 33 |
| – | Total Community Funding Scheme MCA | 11,938 | – | 13,893 |
| 113,237 | Total Non-Departmental Expenditure | 110,705 | 111,282 | 119,167 |
| ACTUAL 2013 $000 |
ACTUAL 2014 $000 |
MAINS EST 2014 $000 |
SUPP EST 2014 $000 |
|
|---|---|---|---|---|
| Non-Departmental Capital Expenses | ||||
| Vote Internal Affairs | ||||
| 1,025 | Capital Investments Lake Taupo | 335 | 337 | 337 |
| 1,784 | Heritage Collection – Annual | 1,518 | 1,546 | 1,546 |
| 2,809 | Total Non-Departmental Capital Expenditure | 1,853 | 1,883 | 1,883 |
| 116,046 | Total Non-Departmental Appropriations | 112,558 | 113,165 | 121,050 |
| ACTUAL 2013 $000 |
ACTUAL 2014 $000 |
|
|---|---|---|
| 112,437 | Total Expenses in Schedule of Expenditure | 110,310 |
| 478 | Former Governors-General – Annuities and Other Payments Re-measurement | 275 |
| (175) | Former Prime Ministers – Annuities Re-measurement | 182 |
| 497 | Former Prime Ministers – Domestic Travel Re-measurement | (62) |
| 113,237 | Total Expenses in Schedule of Non-Departmental Expenditure and Capital Expenditure Against Appropriation | 110,705 |
The accompanying notes form part of these financial statements. For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2014.
Unappropriated Expenditure
Schedule of Non-Departmental Unappropriated Expenditure and Capital Expenditure for the year ended 30 June 2014
The Statement of Unappropriated Expenditure details the amount of expenditure incurred above appropriation.
2013/14 Unappropriated Expenditure against Main Estimates
There was unappropriated expenditure of $1.600 million between the period of Main Estimates and the October Baseline Update for the Digital Literacy and Connection appropriation. Payments against this appropriation were incurred prior to a funding transfer from Vote Education being confirmed (2012/13: $nil).
2013/14 Unappropriated Expenditure against Supplementary Estimates
There was no unappropriated expenditure against Supplementary Estimates for the year ended 30 June 2014 (2012/13: $nil).
Section 25 Public Finance Act Expenditure
Under section 25 of the Public Finance Act 1989, the Minister of Finance can approve expenses to meet emergency costs. Approval was given as a direct result of declaring a state of national emergency for the Canterbury earthquakes under the Civil Defence Act 1983 and the Civil Defence Emergency Management Act 2002. In the year to 30 June 2014 there was no expenditure under this approval (2012/13: $nil).
Details of the costs incurred under section 25 of the Public Finance Act are in note 11.
The accompanying notes form part of these financial statements. For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2014.
Revenue and Expenditure
| ACTUAL 2013 $000 |
ACTUAL 2014 $000 |
MAINS EST 2014 $000 |
SUPP EST 2014 $000 |
|
|---|---|---|---|---|
| Operating Revenue | ||||
| 57 | Crown Revenue | 29 | 451 | – |
| 3,885 | Donations Received | 32,256 | 1,000 | 1,000 |
| 43 | Fines and Penalties | 19 | – | – |
| 581 | Refunds of Unspent Grants | 525 | – | – |
| – | Dividends Received | 303 | – | – |
| 4,566 | Total Operating Revenue | 33,132 | 1,451 | 1,000 |
| Other Revenue | ||||
| – | Revaluation Gain | 82,884 | – | – |
| 536 | Unrealised Gain on the Remeasurement of Shares | 1,083 | – | – |
| 5,102 | Total Revenue | 117,099 | 1,451 | 1,000 |
| ACTUAL 2013 $000 |
ACTUAL 2014 $000 |
MAINS EST 2014 $000 |
SUPP EST 2014 $000 |
|
|---|---|---|---|---|
| Output Expenses | ||||
| 20,656 | Personnel and Travel Expenses – Members of the Executive Council, Former Governors-General and Prime Ministers | 21,444 | 21,624 | 21,972 |
| 78,790 | Grants | 74,263 | 79,409 | 81,036 |
| 12,655 | Other Expenses | 14,225 | 10,056 | 15,966 |
| 336 | Depreciation | 378 | 193 | 193 |
| 112,437 | Total Output Expenses | 110,310 | 111,282 | 119,167 |
| 112,437 | Total Operating Expenses | 110,310 | 111,282 | 119,167 |
Explanation of significant variances against budget are detailed in note 9.
The accompanying notes form part of these financial statements. For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2014.
Assets and Liabilities and Revaluation Reserves
Schedule of Non-Departmental Assets as at 30 June 2014
| ACTUAL 2013 $000 |
NOTE | ACTUAL 2014 $000 |
MAINS EST 2014 $000 |
SUPP EST 2014 $000 |
|
|---|---|---|---|---|---|
| Assets | |||||
| Current Assets | |||||
| 26,115 | Cash and Cash Equivalents | 17,921 | 34,398 | 25,458 | |
| 259 | Debtors and Other Receivables | 2 | 90 | 180 | 180 |
| 26,374 | Total Current Assets | 18,011 | 34,578 | 25,638 | |
| Non-Current Assets | |||||
| 113 | Debtors and Other Receivables | 2 | 119 | 117 | 117 |
| 4,687 | Shares | 3 | 5,770 | 4,151 | 4,687 |
| 22,521 | Property, Plant and Equipment | 4 | 24,208 | 22,811 | 22,663 |
| 1,297,687 | Heritage Collections | 4 | 1,627,627 | 1,297,360 | 1,300,562 |
| 1,325,008 | Total Non-Current Assets | 1,657,724 | 1,324,439 | 1,328,029 | |
| 1,351,382 | Total Assets | 1,675,735 | 1,359,017 | 1,353,667 | |
Schedule of Non-Departmental Liabilities and Revaluation Reserves as at 30 June 2014
| ACTUAL 2013 $000 |
NOTE | ACTUAL 2014 $000 |
MAINS EST 2014 $000 |
SUPP EST 2014 $000 |
|
|---|---|---|---|---|---|
| Liabilities | |||||
| Current Liabilities | |||||
| 6,856 | Creditors and Other Payables | 6 | 5,227 | 4,426 | 5,631 |
| 6,856 | Total Current Liabilities | 5,227 | 4,426 | 5,631 | |
| Non-Current Liabilities | |||||
| 13,402 | Provisions | 7 | 13,008 | 14,203 | 13,703 |
| 13,402 | Total Non-Current Liabilities | 13,008 | 14,203 | 13,703 | |
| 20,258 | Total Liabilities | 18,235 | 18,629 | 19,334 | |
| Revaluation Reserves | |||||
| Revaluation Reserves | |||||
| 296,123 | Revaluation Reserves | 8 | 510,806 | 296,123 | 296,123 |
| 296,123 | Total Revaluation Reserves | 510,806 | 296,123 | 296,123 | |
Explanations of significant variances against budget are detailed in note 9.
The accompanying notes form part of these financial statements. For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2014.
Non-Departmental Commitments
| ACTUAL 2013 $000 |
ACTUAL 2014 $000 |
|
|---|---|---|
| Other Operating Commitments | ||
| 627 | Less than one year | – |
| – | One to two years | – |
| – | Two to five years | – |
| 627 | Total Other Operating Commitments | – |
| 627 | Total Commitments | – |
The accompanying notes form part of these financial statements. For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2014.
Non-Departmental Contingent Assets and Liabilities
Schedule of Non-Departmental Contingent Assets and Liabilities as at 30 June 2014
Quantifiable Contingent Assets
At 30 June 2014, the Crown had a quantifiable contingent asset of $300,000 for a dividend payment from the Local Government Funding Agency. (2013: $300,000).
Non-quantifiable Contingent Assets
There were no non-quantifiable contingent assets as at 30 June 2014 (2013: $nil).
Quantifiable Contingent Liabilities
There were no quantifiable contingent liabilities as at 30 June 2014 (2013: $nil).
Non-quantifiable Contingent Liabilities
There were no non-quantifiable contingent liabilities as at 30 June 2014 (2013: $nil).
The accompanying notes form part of these financial statements. For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2014.
Notes to the Non-Departmental Financial Schedules
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 (the Department) on behalf of the Crown.
These Non-Departmental balances are consolidated into the Financial Statements of the Government for the year ended 30 June 2014. 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.
Basis of Preparation
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.
Measurement and recognition rules applied in the preparation of these Non-Departmental schedules and statements are consistent with New Zealand generally accepted accounting practice as appropriate for public benefit entities.
The accrual basis of accounting has been used unless otherwise stated.
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
Budget Figures
The budget figures are those presented in the Budget Estimates of Appropriation (Main Est) for the Department.
The Supplementary Estimates (Supp Est) figures incorporate the Department’s full year estimates. The budgets also include other amendments made through the course of the Supplementary Estimates process.
Comparatives
When presentation or classifications 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.
Functional and Presentation Currency
The functional currency of the Department is New Zealand dollars. The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000).
Significant Accounting Policies
The following particular accounting policies have been applied:
Revenue
Revenues from the supply of services are recognised when earned in the Non-Departmental Schedule of Revenue on a straight-line-basis over the specified period for the services.
Donation Revenue
When a heritage collection asset is acquired by donation or legal deposit for nil or nominal consideration, the fair value of the asset received is recognised as revenue in the Non-Departmental Schedule of Revenue.
Expenses
Grants
Discretionary grants are only recognised when a constructive obligation exists. This is deemed to occur both when the grant has been approved and the approval has been communicated to the recipient. Non-discretionary grants are recognised when specified criteria have been fulfilled and notice has been given to the Department.
Cash
Cash includes cash in transit and bank accounts.
Debtors and Other Receivables
Accounts receivable have been designated as debtors and other receivables. Debtors and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Debtors and other receivables are recognised initially at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method. Debtors and other receivables entered into with 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 any loans or receivables are impaired. Any impairment losses are recognised in the Non-Departmental Schedule of Expenses.
Shares
Where the Department holds a non-controlling minority interest, the shares are valued at cost in the financial statements. Associates are entities in which the Department has significant influence, but not control over their operating and financial policies. In the Department’s financial statements, the Crown investment in associates has been valued by the equity method.
Property, Plant and Equipment
Disposal
Realised gains and losses arising from disposal of land and property are recognised in the Non-Departmental Schedule of Revenue and Expenditure in the period in which the transaction occurs.
Impairment
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.
Revaluations
Unrealised gains and losses arising from changes in the value of land, buildings and heritage collections 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.
Specific Asset Class Policies
The asset class specific policies are described below:
Land and Buildings
Land and buildings are revalued at least every five years or whenever the carrying amount differs materially to fair value.
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 are undertaken in accordance with the standards issued by the New Zealand Property Institute.
Depreciation on buildings 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 range from 10 to 50 years. Depreciation is not charged on land.
Alexander Turnbull Library Heritage Collections
Section 11 of the National Library of New Zealand (Te Puna Mātauranga o Aotearoa) Act 2003 requires the Crown to own the collections held in the Alexander Turnbull Library in perpetuity.
The Alexander Turnbull Library Heritage Collections are measured at fair value. The methodology used to value the Heritage Collections was to take a sample of each category in the collection to analyse the variety and quality of each category in order to determine a benchmark market value to be extrapolated over the entire category. The market values are obtained from an independent valuer through market assessments and from other collections of a similar nature to government collections. There are also difficulties associated with obtaining an objective valuation for the specified cultural and heritage assets.
The carrying value includes the value of purchases for the collections since the last revaluation and the value of material received through donations and legal deposits.
A valuation is performed every three years. The collections are not depreciated.
National Archives Collection
Non-exceptional National Archives Collection items are revalued every three years using a methodology that divided the collection into categories by format and age, to associate records that together could be said to have a broad commonality of value. Benchmark valuations were obtained from an independent valuer through market assessments and from other collections of a similar nature to government archives. Accessions since the date of valuation are valued on the basis of these benchmarks.
Independent valuations of other exceptional items, including the Treaty of Waitangi, are conducted every three years and are based on market assessments from similar nature collections.
The valuation of the National Archives Collection includes only public archives in the possession of Archives New Zealand. Public archives held in other approved repositories do not form part of the valuation.
The collection is not depreciated.
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 of less than 12 months are recognised at their nominal value.
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.
The balance of provisions represents the estimated value of future benefits payable to former Governors-General and former Prime Ministers over their expected lives payable under the Governor-General Act 2010 and the Members of Parliament (Remuneration and Services) Act 2013.
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 when there is a possibility that they will crystallise.
Goods and Services Tax (GST)
Amounts in the financial statements, including appropriation schedules, are reported exclusive of GST except for receivables and payables, which are stated on a GST-inclusive basis. In accordance with Treasury Instructions, GST is returned on revenue received on behalf of the Crown where applicable. However, an input tax deduction is not claimed on non-departmental expenditure. Instead, the amount of GST applicable to non-departmental expenditure is recognised as a separate expense and eliminated against GST revenue on consolidation of the Financial Statements of the Government.
2. Debtors and Other Receivables
| ACTUAL 2013 $000 |
Debtors and Other | ACTUAL 2014 $000 |
|---|---|---|
| 259 | Debtors and Other Receivables (Current) | 90 |
| 113 | Debtors and Other Receivables (Non-Current) | 119 |
| 372 | Total Debtors and Other Receivables | 209 |
The carrying value of receivables approximates their fair value.
3. Shares
Local Government Funding Agency
The Crown holds $5.000 million of the $25.000 million paid-up capital of the Local Government Funding Agency (LGFA). The shares have been valued by the equity method as, although the Crown does not have direct representation on the LGFA Board of Directors, it may solely appoint, remove and replace one member of the Shareholders’ Council. The Shareholders’ Council, makes recommendations to Shareholders as to the appointment, removal, re-election, replacement and remuneration of Directors. The share value has therefore been adjusted to reflect the Crown’s share of any changes in the net assets of the LGFA.
LGFA Net Assets at 30 June 2014 were $28.848 million (2013: $23.436 million). The Crown’s share of the net assets is $5.770 million (2013: $4.687 million).
| ACTUAL 2013 $000 |
ACTUAL 2014 $000 |
|
|---|---|---|
| 5,673 | Revenues | 149,115 |
| 2,688,189 | Assets | 3,918,187 |
| 2,664,753 | Liabilities | 3,889,339 |
| 2,678 | Surplus/(Deficit) | 6,974 |
The above figures are unaudited.
The Crown is not a guarantor of the LGFA and has no share of any contingent liabilities of the LGFA.
4. Property, Plant and Equipment
| Asset Class | Balance 1 July $000 |
Additions $000 |
Revaluation/ Impairments $000 |
Disposals $000 |
Transfers* $000 |
Balance 30 June $000 |
|---|---|---|---|---|---|---|
| Cost or Valuation | ||||||
| Property, Plant and Equipment | ||||||
| Land | 10,800 | – | – | – | – | 10,800 |
| Buildings – Residential | 6,543 | – | (58) | – | – | 6,485 |
| Buildings – Commercial | 6,163 | 335 | 1,050 | – | – | 7,548 |
| Total Cost or Valuation of Property, Plant and Equipment | 23,506 | 335 | 992 | – | – | 24,833 |
| Heritage Collections | ||||||
| Archives Heritage Collection | 448,562 | 31,154 | 142,839 | – | 328 | 622,883 |
| Total Archives Heritage Collection | 448,562 | 31,154 | 142,839 | – | 328 | 622,883 |
| Alexander Turnbull Library Heritage Collections | ||||||
| Cartographic | 24,756 | 65 | 52,230 | – | – | 77,051 |
| Children’s Historical | 1,784 | 126 | (1,806) | – | – | 104 |
| Digital | – | – | 4,432 | – | – | 4,432 |
| Drawings and Prints | 63,795 | 619 | 294,273 | – | – | 358,687 |
| Ephemera | 4,750 | 89 | 6,395 | – | – | 11,234 |
| Formed | 446 | – | – | – | (446) | – |
| General | 99,197 | 14 | (90,633) | – | – | 8,578 |
| Manuscripts/Archives | 73,629 | 403 | 70,863 | – | – | 144,895 |
| Music | 1,632 | 13 | 127 | – | – | 1,772 |
| Newspapers | 44,845 | 36 | 32,959 | – | – | 77,840 |
| New Zealand and Pacific | 30,021 | 372 | (15,162) | – | 875 | 16,106 |
| Oral History | 12,875 | 121 | 3,011 | – | – | 16,007 |
| Others | 429 | - | – | – | (429) | – |
| Photographic | 66,379 | 311 | (25,473) | – | – | 41,217 |
| Serials | 39,862 | 276 | (15,148) | – | – | 24,990 |
| Short Title | 4,636 | 18 | 2,042 | – | – | 6,696 |
| Rare Books and Fine Prints | 380,089 | 158 | (165,112) | – | – | 215,135 |
| Total Alexander Turnbull Library Heritage Collections | 849,125 | 2,621 | 152,998 | – | – | 1,004,744 |
| Total Cost of Heritage Collections | 1,297,687 | 33,775 | 295,837 | – | 328 | 1,627,627 |
| Total Cost | 1,321,193 | 34,110 | 296,829 | – | 328 | 1,652,460 |
| Accumulated Depreciation | ||||||
| Property, Plant and Equipment | ||||||
| Buildings – Residential | 396 | 198 | (17) | – | – | 577 |
| Buildings – Commercial | 589 | 180 | (721) | – | – | 48 |
| Total Accumulated Depreciation | 985 | 378 | (738) | – | – | 625 |
| Net Book Value | ||||||
| Property, Plant and Equipment | 22,521 | (43) | 1,730 | – | – | 24,208 |
| Heritage Collections | 1,297,687 | 33,775 | 295,837 | – | 328 | 1,627,627 |
| Total Net Book Value | 1,320,208 | 33,732 | 297,567 | – | 328 | 1,651,835 |
* Transfers between Government Departments and reclassification between asset categories.
| Asset Class | Balance 1 July $000 |
Additions $000 |
Revaluation/ Impairments $000 |
Disposals $000 |
Transfers* $000 |
Balance 30 June $000 |
|---|---|---|---|---|---|---|
| Cost or Valuation | ||||||
| Property, Plant and Equipment | ||||||
| Land | 10,800 | – | – | – | – | 10,800 |
| Buildings – Residential | 6,543 | – | – | – | – | 6,543 |
| Buildings – Commercial | 5,138 | 1,025 | – | – | – | 6,163 |
| Total Cost or Valuation of Property, Plant and Equipment | 22,481 | 1,025 | – | – | – | 23,506 |
| Heritage Collections | ||||||
| Archives Heritage Collection | 445,845 | 2,717 | – | – | – | 448,562 |
| Total Archives Heritage Collection | 445,845 | 2,717 | – | – | – | 448,562 |
| Alexander Turnbull Library Heritage Collections | ||||||
| Cartographic | 24,726 | 30 | – | – | – | 24,756 |
| Children’s Historical | 1,569 | 215 | – | – | – | 1,784 |
| Digital | – | – | – | – | – | – |
| Drawings and Prints | 63,525 | 270 | – | – | – | 63,795 |
| Ephemera | 4,672 | 78 | – | – | – | 4,750 |
| Formed | 446 | – | – | – | – | 446 |
| General | 99,181 | 16 | – | – | – | 99,197 |
| Manuscripts/Archives | 72,798 | 831 | – | – | – | 73,629 |
| Music | 1,604 | 28 | – | – | – | 1,632 |
| Newspapers | 44,803 | 42 | – | – | – | 44,845 |
| New Zealand and Pacific | 29,624 | 397 | – | – | – | 30,021 |
| Oral History | 12,763 | 112 | – | – | – | 12,875 |
| Others | 429 | – | – | – | – | 429 |
| Photographic | 66,067 | 312 | – | – | – | 66,379 |
| Serials | 39,567 | 295 | – | – | – | 39,862 |
| Short Title | 4,617 | 19 | – | – | – | 4,636 |
| Rare Books and Fine Prints | 379,782 | 307 | – | – | – | 380,089 |
| Total Alexander Turnbull Library Heritage Collections | 846,173 | 2,952 | – | – | – | 849,125 |
| Total Cost of Heritage Collections | 1,292,018 | 5,669 | – | – | – | 1,297,687 |
| Total Cost | 1,314,499 | 6,694 | – | – | – | 1,321,193 |
| Accumulated Depreciation | ||||||
| Property, Plant and Equipment | ||||||
| Buildings – Residential | 198 | 198 | – | – | – | 396 |
| Buildings – Commercial | 451 | 138 | – | – | – | 589 |
| Total Accumulated Depreciation | 649 | 336 | – | – | – | 985 |
| Net Book Value | ||||||
| Property, Plant and Equipment | 21,832 | 689 | – | – | – | 22,521 |
| Heritage Collections | 1,292,018 | 5,669 | – | – | – | 1,297,687 |
| Total Net Book Value | 1,313,850 | 6,358 | – | – | – | 1,320,208 |
* Transfers between Government Departments and reclassification between asset categories.
Capital Work in Progress
The total amount of property, plant and equipment in the course of construction is $235,000 (2012/13: $1,338,000).
Revaluation Movement
Details of valuations and revaluation movements are contained in note 8.
5. Financial Instruments
| 2013 $000 |
2014 $000 |
|
|---|---|---|
| Financial assets at Fair Value Through Profit or Loss | ||
| 4,687 | Shares | 5,770 |
| 4,687 | Total Financial assets at Fair Value Through Profit or Loss | 5,770 |
| Loans and Receivables | ||
| 26,115 | Cash and Cash Equivalents | 17,921 |
| 372 | Debtors and Other Receivables | 209 |
| 26,487 | Total Loans and Receivables | 18,130 |
| Financial Liabilities Measured at Amortised Cost | ||
| 6,856 | Creditors and Other Payables | 5,227 |
| 6,856 | Total Financial Liabilities Measured at Amortised Cost | 5,227 |
The Department is party to financial instrument arrangements as part of its daily operations. These include cash and cash equivalents, accounts receivable, accounts payable and provisions, accrued expenses, and foreign currency forward contracts.
The Department’s activities expose it to a variety of financial instrument risks, including market risk, credit risk and liquidity risk. The Department has a series of policies to manage the risks associated with financial instruments and seeks to minimise exposure from financial instruments. These policies do not allow any transactions that are speculative in nature to be entered into.
Credit Risk
Credit risk is the risk that a third party will default on its obligations, causing a loss to be incurred. Credit risk arises from debtors and deposits with banks. Funds must be deposited with Westpac, a registered bank.
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.
| ACTUAL 2013 $000 |
ACTUAL 2014 $000 |
|
|---|---|---|
| 26,115 | Cash and Cash Equivalents | 17,921 |
| 372 | Debtors and Other Receivables | 209 |
| 4,687 | Shares | 5,770 |
| 31,174 | Total Exposure to Credit Risk | 23,900 |
Cash and cash equivalents excludes any cash physically held including as petty cash as cash is not exposed to credit risk.
Liquidity Risk
Liquidity risk is the risk that the Department will encounter difficulty raising liquid funds to meet commitments as they fall due.
In meeting its liquidity requirements, the Department closely monitors its forecast cash requirements with expected drawdowns from the New Zealand Debt Management Office. The Department maintains a target level of available cash to meet liquidity requirements.
| Total $000 |
Less Than 6 Months $000 |
Between 6 Months and 1 Year $000 |
Between 1 Year and 5 Years $000 |
Over 5 Years $000 |
|
|---|---|---|---|---|---|
| 2014 | |||||
| Creditors and Other Payables | 5,227 | 5,227 | – | – | – |
| 2013 | |||||
| Creditors and Other Payables | 6,856 | 6,856 | – | – | – |
6. Creditors and Other Payables
| ACTUAL 2013 $000 |
ACTUAL 2014 $000 |
|
|---|---|---|
| 6,329 | Accrued Expenses | 4,951 |
| 148 | Accrued Canterbury Earthquake Expenses | – |
| 379 | Accrued Heritage Collection Purchases | 276 |
| 6,856 | Total Creditors and Other Payables | 5,227 |
The carrying value of creditors and other payables approximates their fair value. Other payables and Accrued Heritage Collection purchases are non-interest bearing and are normally settled on 30 day terms.
7. Provisions
The balance of the provisions account represents the estimated value of future benefits payable to Former Governors-General and Prime Ministers over their expected lives payable under the Members of Parliament (Remuneration and Services) Act 2013 and Governor-General Act 2010 as at balance date.
Actuarial services were provided by Mercer Human Resource Consulting Ltd and were prepared by Mark Channon, Fellow of the New Zealand Society of Actuaries.
The measurement of the estimated future benefits depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liability include the discount rate and the consumer price index. Any changes in these assumptions will affect the carrying value of the liability.
| 2014 | 2013 | |
|---|---|---|
| Discount Rate | 4.47% | 3.91% |
| Consumer Price Index | 2.50% | 2.50% |
8. Revaluation of Property, Plant and Equipment
| 2014 | Balance 1 July $000 |
Revaluation Movement $000 |
Balance 30 June $000 |
|---|---|---|---|
| Land and Buildings | 10,735 | 1,730 | 12,465 |
| Archives Heritage Collection | – | 59,955 | 59,955 |
| Alexander Turnbull Library Heritage Collections | 285,388 | 152,998 | 438,386 |
| Total Revaluation Reserves | 296,123 | 214,683 | 510,806 |
| 2013 | Balance 1 July $000 |
Revaluation Movement $000 |
Balance 30 June $000 |
|---|---|---|---|
| Land and Buildings | 10,735 | – | 10,735 |
| Archives Heritage Collection | – | – | – |
| Alexander Turnbull Library Heritage Collections | 285,388 | – | 285,388 |
| Total Revaluation Reserves | 296,123 | – | 296,123 |
Land and Buildings
Ministerial Properties
Based on the advice of independent third parties and Department management that there have been no material changes to the carrying value of the Non-Departmental Ministerial Properties during the accounting period, full valuations as at 30 June 2014 have not been sought.
Darroch Ltd, a Licensed Real Estate Agent (REAA 2008), a registered independent valuer, conducted a valuation of Non-Departmental Ministerial Properties land and buildings during May 2011 with valuations effective 30 June 2011.
The Ministerial Properties comprising Premier House, Vogel House and Bolton Street are restricted for Government use. The carrying value of the restricted use land and buildings is $14.666 million (2012/13: $14.844 million).
Lake Taupo Boating and Building Facilities
Building Facilities
Building facilities were valued by Darroch Ltd, a Licensed Real Estate Agent (REAA 2008), registered independent valuer, who conducted a valuation during May 2014 with valuations effective 30 June 2014.
Boating Facilities
Boating facilities were valued by DTZ New Zealand Ltd (MREINZ), a registered independent valuer, in May 2014 with valuations effective 30 June 2014.
National Archives Collection
The National Archives Collection was revalued as at 30 June 2014 by an independent valuer, Dunbar Sloane, through market assessments and from other collections of a similar nature to government archives.
The Treaty of Waitangi and other exceptional items were revalued as at 30 June 2014 by an independent valuer, Dunbar Sloane. These valuations were based on market assessments and from other collections of a similar nature.
Alexander Turnbull Library Heritage Collections
The Alexander Turnbull Library Heritage Collections were revalued as at 30 June 2014 by an independent valuer, Webb’s. These valuations were based on thorough market assessments and from other collections of a similar nature to the government collection.
9. Explanation of Significant Variances against Budget
Variance between the Main Estimates and the Supplementary Estimates
Non-Departmental Appropriations
The significant variances for Appropriated Expenditure are explained below:
Chatham Islands Council
The increase in the budget between the Main Estimates and the Supplementary Estimates of $987,000 was due to an expense transfer from 2012/13 to 2013/14 for the Chatham Islands Solid Waste Management Programme.
Community Development Scheme
The decrease in the budget between the Main Estimates and the Supplementary Estimates of $1.895 million was due to the establishment of the Community Funding Schemes Multi-Category Expenses and Capital Expenditure Appropriation with effect from 1 November 2013 (decrease $2.752 million). The decrease was partially offset by an expense transfer from 2012/13 to 2013/14 to reflect the timing of the implementation of specific projects within the community-led initiatives (increase of $857,000).
Community Internship Programme
The decrease in the budget between the Main Estimates and the Supplementary Estimates of $204,000 was due to the establishment of the Community Funding Schemes Multi-Category Expenses and Capital Expenditure Appropriation with effect from 1 November 2013.
Community Organisation Grants Scheme
The decrease in the budget between the Main Estimates and the Supplementary Estimates of $10.897 million was due to the establishment of the Community Funding Schemes Multi-Category Expenses and Capital Expenditure Appropriation with effect from 1 November 2013.
Crown-owned Assets at Lake Taupo – Maintenance Costs
The decrease in the budget between the Main Estimates and the Supplementary Estimates of $831,000 was due to an expense transfer from 2013/14 to 2014/15 due to delays in the completion of the multi-year project to remedy deferred maintenance of Crown-owned Lake Taupo boating facilities (decrease of $1.050 million). The decrease is partially offset by depreciation associated with capitalisation of Crown-owned assets at Lake Taupo (increase of $190,000) and an expense transfer from 2012/13 to 2013/14 due to delays in the completion of the multi-year programme to remedy the deferred maintenance of Crown-owned Lake Taupo boating facilities (increase of $29,000).
Debt Write-down
This previously existing appropriation was re-established in 2013/14 to write down unrecoverable non-departmental debts relating to the Community Organisation Grants Scheme (increase of $42,000).
Digital Literacy and Connection
The increase in the budget between the Main Estimates and the Supplementary Estimates of $1.600 million was due to a fiscal transfer from Vote Education to provide additional funding for the Computers in Homes programme.
Disarmament Education Grants
The decrease in the budget between the Main Estimates and the Supplementary Estimates of $7,000 was due to the establishment of the Community Funding Schemes Multi-Category Expenses and Capital Expenditure Appropriation with effect from 1 November 2013.
Emergency Expenses
The decrease in the budget between the Main Estimates and the Supplementary Estimates of $195,000 was due to the transfer of Ministry of Civil Defence and Emergency Management functions and associated funding to Vote Prime Minister and Cabinet with effect from 1 April 2014 (decrease of $2.822 million). The decrease was partially offset by expense transfers from 2012/13 to 2013/14 to reimburse local authorities for response and recovery costs incurred as a result of the 2012 Nelson-Tasman flood events (increase of $2.000 million) and to provide assistance to Environment Bay of Plenty for hazard mitigation work (increase of $627,000).
Executive Council and Members of the Executive – Salaries and Allowances PLA
The increase in the budget between the Main Estimates and the Supplementary Estimates of $345,000 was due to an increase in costs pursuant to the Parliamentary Salaries and Allowances Determination 2013 and Fringe Benefit Tax associated with accommodation provided to Ministers.
February 2011 Christchurch Earthquake National Controller Costs
This previously existing appropriation was re-established in 2013/14 due to an expense transfer from 2012/13 to 2013/14 for the costs incurred at the direction of the National Controller Civil Defence for response costs after 21 March 2011 as part of the response to the 22 February 2011 Christchurch earthquake (increase of $240,000). The increase was partially offset by the transfer of Ministry of Civil Defence and Emergency Management functions and associated funding to Vote Prime Minister and Cabinet with effect from 1 April 2014 (decrease of $219,000).
Former Prime Ministers – Annuities PLA
The increase in the budget between the Main Estimates and the Supplementary Estimates of $3,000 was due to an increase in costs pursuant to the Parliamentary Annuities Determination 2014.
Pitt Island Wharf Reconstruction Project
This appropriation was created in 2013/14 to provide a grant to the Chatham Islands Enterprise Trust for reconstruction of the Pitt Island Wharf in the Chatham Islands (increase of $5.000 million).
Public Inquiries
This previously existing appropriation was re-established in 2013/14 due to the Government Inquiry into the Whey Protein Concentrate Contamination Incident (increase of $486,000).
Subsidies to Local Government
The decrease in the budget between the Main Estimates and the Supplementary Estimates of $830,000 was due to the transfer of Ministry of Civil Defence and Emergency Management functions and associated funding to Vote Prime Minister and Cabinet with effect from 1 April 2014 (decrease of $875,000). The decrease was partially offset by an expense transfer from 2012/13 to 2013/14 for the Civil Defence and Emergency Management Resilience Fund (increase of $45,000).
Te Oneroa a Tohe Beach Management
This previously existing appropriation was re-established in 2013/14 due to an expense transfer from 2012/13 to 2013/14 for the development of the Te Hiku Beach Management Plan (increase of $400,000).
Youth Workers Training Scheme
The decrease in the budget between the Main Estimates and the Supplementary Estimates of $33,000 was due to the establishment of the Community Funding Schemes Multi-Category Expenses and Capital Expenditure Appropriation with effect from 1 November 2013.
Multi-Category Expenses and Capital Expenditure
Community Funding Schemes
The Community Funding Schemes Multi-Category Expenses and Capital Expenditure Appropriation was established with effect from 1 November 2013 following the changes to the Public Finance Act 1989. This appropriation provides greater flexibility for allocating resources, while contributing to an overarching purpose and retaining transparency at the category level on expenditure and performance. Previously, the seven appropriations were non-departmental other expenses.
Schedule of Non-Departmental Assets and Liabilities
The significant variances within the Schedule of Non-Departmental Assets and Liabilities are explained below:
The increase in the budget between the Main Estimates and the Supplementary Estimates reflects the closing balances as at 30 June 2013.
Variance between the Actual 2013/14 and the Supplementary Estimates
Actual expenditure was 7.0 percent lower than the Supplementary Estimates. The overall under-expenditure of $8.492 million is primarily attributable to the following factors as outlined in the vote commentary below.
Non-Departmental Appropriations
The significant variances for Appropriated Expenditure are explained below:
Community Development Scheme
Actual expenditure was lower than Supplementary Estimates by $1.858 million due to the timing of the implementation of the Community-led Development pilot in the communities for which an in-principle expense transfer up to a maximum of $1.876 million from 2013/14 to 2014/15 was approved.
Crown-owned Assets at Lake Taupo – Maintenance Costs
Actual expenditure was lower than Supplementary Estimates by $0.999 million resulting from delays in the completion of the multiyear project to remedy deferred maintenance of Crown-owned Lake Taupo boating facilities. An in-principle expense transfer up to a maximum of $0.960 million from 2013/14 to 2014/15 was approved.
Former Governors-General – Annuities and Other Payments PLA
Actual expenditure was lower than Supplementary Estimates by $27,000 mainly due to lower than anticipated demand for travel.
Former Prime Ministers – Domestic Travel
Actual expenditure was lower than Supplementary Estimates by $72,000 mainly due to lower than anticipated demand for travel.
Public Inquiries
Actual expenditure was lower than Supplementary Estimates by $91,000 due to delays in the commencement of Stage Two of the Government Inquiry into the Whey Protein Concentrate Contamination Incident. An in-principle expense transfer up to a maximum of $120,000 was approved.
Racing Safety Development Fund
Actual expenditure was lower than Supplementary Estimates by $54,000 due to lower contributions towards improving the safety and facilities at racecourses.
Rates Rebate Scheme
Actual expenditure was lower than Supplementary Estimates by $4.761 million mainly due to lower than anticipated demand for the rates rebates scheme in 2013/14.
Te Oneroa a Tohe Beach Management
Actual expenditure was lower than Supplementary Estimates by $400,000 as a result of the timing of the payment to the Northland Regional Council associated with development of the Ninety Mile Beach Management Plan with Te Hiku iwi, due to delays in the passing of the enabling legislation. An in-principle expense transfer from 2013/14 to 2014/15 up to a maximum of $400,000 was approved.
Schedule of Non-Departmental Revenue
Actual operating revenue was $32.132 million higher than Supplementary Estimates primarily resulting from the value of accession of documents, including a significant accession of maps from NIWA, received by Archives New Zealand during the 2013/14 year.
Schedule of Non-Departmental Assets and Liabilities
The significant variances within the Schedule of Non-Departmental Assets and Liabilities are explained below:
Cash and Cash Equivalents
The actual cash balance as at 30 June 2014 was $7.537 million lower than Supplementary Estimates, primarily due to the high level of grants paid during the year.
Heritage Collections
The increase in the value of the Heritage Collections reflects the revaluation of the Archives Heritage Collection and the Alexander Turnbull Library Heritage Collections undertaken in 2013/14 and significant accessions received by Archives New Zealand in 2013/14 including maps from NIWA.
10. Payments to or in respect of benefits and privileges of former Governors General
The terms of the appointment of a person as Governor-General may include an agreement for that person and his or her spouse or partner to be provided with specified benefits or privileges by way of payments in respect of domestic travel and the use of chauffeured cars when he or she no longer holds office as Governor-General.
This statement sets out the details of any benefits or privileges paid to or in respect of any former Governor-General under an agreement made under section 11(1) or section 28(1)(d) of the Governor-General Act 2010.
| 2013/14 | FBT $ |
Airfares $ |
Surface Travel $ |
Total $ |
|---|---|---|---|---|
| Lady Norma Beattie | 1,385 | 2,212 | 3,295 | 6,892 |
| Lady Jane Blundell | – | – | – | – |
| Lady Beverley Reeves | 1,088 | 2,058 | 6,255 | 9,401 |
| Dame Catherine Tizard | 1,000 | 1,403 | 11,436 | 13,839 |
| The Rt Hon Sir Michael Hardie-Boyes | – | 395 | 4,581 | 4,976 |
| Dame Sylvia Cartwright | 2,265 | 3,617 | 4,450 | 10,332 |
| The Rt Hon Sir Anand Satyanand | 6,713 | 11,899 | 1,344 | 19,956 |
| Total | 12,451 | 21,584 | 31,361 | 65,396 |
| 2012/13 | FBT $ |
Airfares $ |
Surface Travel $ |
Total $ |
|---|---|---|---|---|
| Lady Norma Beattie | 1,831 | 2,424 | 3,820 | 8,075 |
| Lady Jane Blundell | 273 | – | – | 273 |
| Lady Beverley Reeves | 1,327 | 2,395 | 4,834 | 8,556 |
| Dame Catherine Tizard | 1,741 | 2,692 | 9,707 | 14,140 |
| The Rt Hon Sir Michael Hardie-Boyes | – | – | 3,957 | 3,957 |
| Dame Sylvia Cartwright | 1,043 | 1,622 | 2,933 | 5,598 |
| The Rt Hon Sir Anand Satyanand | 12,193 | 16,253 | 2,522 | 30,968 |
| Total | 18,408 | 25,386 | 27,773 | 71,567 |
11. Emergency Expenditure for Canterbury Earthquakes
The Canterbury region was significantly affected by two major earthquakes and a number of aftershocks during the 2010/11 and 2011/12 financial years, resulting in significant damage to property and infrastructure. The two major earthquakes were a magnitude 7.1 on 4 September 2010 and a magnitude 6.3 on 22 February 2011. Significant aftershocks that caused further damage occurred on 26 December 2010 and on 13 June 2011.
These Non-Departmental financial statements include expenses incurred in relation to these earthquakes, under Non-Departmental Other Expenses.
| Actual 2011 $000 |
Actual 2012 $000 |
Actual 2013 $000 |
Actual 2014 $000 |
Actual Since Feb 2011 $000 |
|
|---|---|---|---|---|---|
| National Controller Direct Response Expenses | |||||
| February 2011 Christchurch Earthquake National Controller Costs | 3,324 | 362 | 41 | 21 | 3,748 |
| Section 25 Public Finance Act | 19,281 | – | – | – | 19,281 |
| Total National Controller Direct Response Expenses | 22,605 | 362 | 41 | 21 | 23,029 |
| Canterbury Local Authorities’ Response and Recovery Expenses | |||||
| Expenses recognised in respect of Indemnity for Response and Recovery Costs – Section 65ZG Public Finance Act | 108,457 | 80,539 | – | – | 188,996 |
| Emergency Expenses | 15,849 | 46 | 9,840 | – | 25,735 |
| Section 25 Public Finance Act | 8,696 | – | – | – | 8,696 |
| Total Canterbury Local Authorities’ Response and Recovery Expenses | 133,002 | 80,585 | 9,840 | – | 223,427 |
| Total Canterbury Earthquake Expenses | 155,607 | 80,947 | 9,881 | 21 | 246,456 |
National Controller Direct Response Expenses
Following the 22 February earthquake, and declaration of a State of National Emergency, the National Controller incurred necessary expenses in response to the emergency during 2010/11. These included expenses for freighting in emergency supplies and teams, chemical toilets, emergency fences and specialist equipment. The bulk of this expenditure was approved when the Minister of Finance invoked Section 25 of the Public Finance Act 1989 (expenses may be incurred in emergencies) immediately following the February earthquake.
National Controller Direct Response Expenses incurred in 2013/14 totalling $0.021 million (2012/13: $0.041 million, 2011/12: $0.362 million, 2010/11: $3.324 million) have arisen as a result of claims against the Crown for actions incurred during the State of National Emergency.
Local Authorities’ Response and Recovery Expenses
Under current Government policy settings, outlined in the National Civil Defence Emergency Management Plan (‘the Plan’) and Guide to the National Civil Defence Emergency Management Plan[54] (‘the Guide’), the four affected Canterbury local authorities will be reimbursed, in whole or part, for certain types of response and recovery costs incurred as a result of the earthquakes. Under the Plan and the Guide, primary responsibility for managing these claims rests with the Department.
The Government provided an indemnity in favour of the four affected Canterbury authorities under 65ZD of the Public Finance Act 1989 for these costs. The indemnity formalises the implicit guarantee under the Guide.
In March 2012 the indemnity was extended to include CERA for recovery costs, along with transfer of the responsibility for assessment and management of these claims. The indemnity enables both the Department and CERA to recognise their respective obligations in respect of response and recovery costs without further appropriation.
The Department therefore did not record any liability for recovery costs at 30 June 2012.
Response Costs – Four Affected Canterbury Authorities
Under the Guide the standard financial support policy is for the Government to:
- fully reimburse response costs associated with caring for displaced people; and
- reimburse 60% of response costs associated with precautionary measures to reduce immediate danger and temporary repairs to essential infrastructure.
The Government subsequently decided to fully reimburse Christchurch City Council for costs associated with temporary repairs to essential infrastructure because of the earthquakes.
Response Costs – Other Councils Assisting
The Government has also agreed to reimburse costs totalling $0.035 million for other councils that provided assistance to the four affected Canterbury authorities in the immediate aftermath of the September 2010 and February 2011 earthquakes. The other Councils assisting were reimbursed for travel, accommodation, food and minor incidental costs for staff and volunteers who provided on-the-ground support during the immediate post-quake response periods.
Recovery Costs
Recovery costs shown by the Department are those that were settled with the affected Councils prior to transfer of responsibility to CERA. Following transfer of responsibility for the recovery cost claims process to CERA, the Department no longer records any liability for recovery cost claims.
| Christchurch City Council $000 |
Waimakariri District Council $000 |
Environment Canterbury $000 |
Selwyn District Council $000 |
Other Councils Assisting $000 |
Total $000 |
|
|---|---|---|---|---|---|---|
| 2010/11 | ||||||
| Claims From Councils | ||||||
| Emergency expenses | 11,712 | 3,774 | 182 | 181 | – | 15,849 |
| Response costs claims lodged | 107,652 | 714 | 1,584 | 2,267 | – | 112,217 |
| Estimated response costs | – | – | 4,936 | – | – | 4,936 |
| Total Claims | 119,364 | 4,488 | 6,702 | 2,448 | – | 133,002 |
| Payments made to Councils | ||||||
| Emergency expenses | (11,712) | (3,774) | (182) | (181) | – | (15,849) |
| Response costs | (8,696) | – | – | – | – | (8,696) |
| Total Payments | (20,408) | (3,774) | (182) | (181) | – | (24,545) |
| Claims accrued at 30 June 2011 | 98,956 | 714 | 6,520 | 2,267 | – | 108,457 |
| 2011/12 | ||||||
| Accrued Claims carried forward | 98,956 | 714 | 6,520 | 2,267 | – | 108,457 |
| Claims From Councils | ||||||
| Emergency expenses | – | – | 11 | – | 35 | 46 |
| Response costs claims lodged | 81,156 | 588 | – | – | – | 81,744 |
| Estimated response costs | 22,236 | – | – | – | – | 22,236 |
| Total Claims | 103,392 | 588 | 11 | – | 35 | 104,026 |
| Less claims declined or requiring special policy decisions | (17,516) | – | (3,703) | (2,222) | – | (23,441) |
| Payments made to Councils | ||||||
| Emergency expenses | – | – | (11) | – | (35) | (46) |
| Payments made to Councils | (94,471) | (1,302) | (2,817) | (45) | – | (98,635) |
| Total Payments | (94,471) | (1,302) | (2,828) | (45) | (35) | (98,681) |
| Claims accrued at 30 June 2012 | 90,361 | – | – | – | – | 90,361 |
| 2012/13 | ||||||
| Accrued Claims carried forward | 90,361 | – | – | – | – | 90,361 |
| Claims From Councils | ||||||
| Emergency expenses | 8,340 | – | 129 | – | – | 8,469 |
| Total Claims | 8,340 | – | 129 | – | – | 8,469 |
| Less claims declined and accruals reversed | (6,376) | – | – | – | – | (6,376) |
| Payments made to Councils | ||||||
| Emergency expenses | (92,325) | – | – | – | – | (92,325) |
| Total Payments | (92,325) | – | – | – | – | (92,325) |
| Claims accrued at 30 June 2013 | – | – | 129 | – | – | 129 |
| 2013/14 | ||||||
| Accrued Claims carried forward | – | – | 129 | – | – | 129 |
| Claims From Councils | ||||||
| Emergency expenses | – | – | – | – | – | – |
| Total Claims | – | – | – | – | – | – |
| Less claims declined and accruals reversed | – | – | (64) | – | – | (64) |
| Payments made to Councils | ||||||
| Emergency expenses | – | – | (65) | – | – | (65) |
| Total Payments | – | – | (65) | – | – | (65) |
| Claims accrued at 30 June 2014 | – | – | – | – | – | – |
Trust Money Administered on Behalf of the Crown
Schedule of Trust Money Administered on Behalf of the Crown for the year ended 30 June 2014
The following trust money is administered on behalf of the Crown under Part VII of the Public Finance Act 1989.
Description of Trusts
Vogel House Trust:
This trust was established to hold bonds for the hire of Vogel House and Premier House.
Christchurch Earthquake Appeal Fund:
This trust was established by Government as a result of the Canterbury Earthquake of 22 February 2011. It is a registered charity and administers donations and grants made to affected people in Canterbury.
New Zealand 1990 Scholarships:
The New Zealand 1990 Scholarship Trust was established to provide scholarships for top overall students in University Bursaries examinations.
Macklin Bequest Fund:
The Macklin Bequest Fund is used to fund special projects relating to the National Library and may include collaborative projects between the National Library and other institutions in the galleries, libraries, archives and museum sector or between the National Library and other libraries, that, supplement and further the work of other libraries in New Zealand.
Interloans Billing System Fund:
The Interloans Billing System Fund is administered by the National Library. The trust manages the on-charging of fees for national inter-lending of books between participating New Zealand libraries and fees for Trans-Tasman inter-lending between participating New Zealand and Australian libraries.
Schedule of Trust Money
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.
These figures are subject to audit.
| Trust | Opening Balance 2013 $000 |
Contributions $000 |
Distributions $000 |
Revenue $000 |
Expenses $000 |
Closing Balance 2014 $000 |
|---|---|---|---|---|---|---|
| Vogel House | – | – | – | – | – | – |
| Christchurch Earthquake Appeal Trust | 22,916 | 1,867 | (15,817) | 1,991 | (1,762) | 9,195 |
| New Zealand 1990 Scholarships | 743 | – | – | 20 | – | 763 |
| Macklin Bequest Fund | 290 | 13 | – | 11 | (28) | 286 |
| Interloans Billing System Fund | 58 | – | – | 404 | (422) | 40 |
| Total Trusts | 24,007 | 1,880 | (15,817) | 2,426 | (2,212) | 10,284 |
Footnotes
[54] The Guide is issued by the Director of Civil Defence Emergency Management (CDEM) under Section 9 of the Civil Defence Emergency Management Act 2002.