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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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