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Publications ~ Annual Report 2005

Notes to the financial statements
for the year ended 30 June 2005

Note 1: Budget composition

		Note	30.6.05 Budget Forecast $000	30.6.05 Supplementary Estimates Changes $000	30.6.05 Final Budget Total $000
Revenue	Crown	2	16,276	(222)	16,054
	Other	3	48	10	58
	Interest		-	-	-
	Total revenue		16,324	(212)	16,112
Expenditure	Personnel		10,231	(102)	10,129
	Operating	4	5,633	(45)	5,588
	Depreciation	5	375	(75)	300
	Capital charge	6	67	-	67
	Total expenses		16,306	(222)	16,084
Net surplus			18	10	28

Note 2: Revenue-Crown

This is revenue earned for the supply of outputs to the Crown.

 

Note 3: Other revenue

	30.6.04 Actual $000	30.6.05 Actual $000	30.6.05 Main Estimates $000	30.6.05 Supplementary Estimates $000
Rental income	58	54	48	58
Gain on sale of fixed assets	2	37	-	-
Total other revenue	60	91	48	58

Note 4: Employee remuneration of more than $100,000 per annum

Remuneration Band	30.6.04 Number of Staff	30.6.05 Number of Staff
$100,001 - $110,000	4	3
$110,001 - $120,000	2	3
$120,001 - $130,000	3	-
$130,001 - $140,000	3	3
$140,001 - $150,000	4	1
$150,001 - $160,000	1	3
$160,001 - $170,000	1	3
$170,001 and above	2	1

Note 5: Operating expenses

	30.6.04 Actual $000	30.6.05 Actual $000	30.6.05 Main Estimates $000	30.6.05 Supplementary Estimates $000
Audit fees for audit of financial statements	33	35	32	36
Premises rental	401	427	392	412
Operating lease rental	124	118	108	113

The premises rental expenses do not include accommodation costs for personnel located on two floors of the Beehive (estimated annual rental for the furnished accommodation of $350,000) which are provided by the Parliamentary Service.

 

Note 6: Depreciation

	30.6.04 Actual $000	30.6.05 Actual $000	30.6.05 Main Estimates $000	30.6.05 Supplementary Estimates $000
Fixtures & fittings	66	74	75	74
Furniture	16	16	20	10
Office equipment	22	14	15	5
Motor vehicles	21	19	50	20
Major plant & equipment	2	1	-	-
Minor plant & equipment	24	26	5	4
IT equipment	126	133	200	177
Kitchen equipment	10	10	10	10
Total depreciation	292	293	375	300

Note 7: Capital charge

The department pays a capital charge on its taxpayers’ funds at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2005 was 8.0% (8.5% for 2004).

Note 8: Provision for repayment of surplus

	30.6.04 Actual $000	30.6.05 Actual $000
Current year net surplus (deficit)	744	1,000
Add: other expenses (not for production of outputs)	-	-
Total provision for repayment of surplus	744	1,000

Note 9: Debtors and receivables

	30.6.04 Actual $000	30.6.05 Actual $000
Crown-Debtor	1,702	1,454
Sundry receivable	54	65
Prepayment	19	13
Total debtors and prepayment	1,775	1,532

Note 10: Fixed assets

		30.6.04 Actual $000	30.6.05 Actual $000
Fixtures & fittings	At cost	745	866
	Accumulated depreciation	327	314
	Net book value	418	552
Furniture	At cost	216	237
	Accumulated depreciation	190	196
	Net book value	26	41
Office equipment	At cost	398	401
	Accumulated depreciation	356	370
	Net book value	42	31
Motor vehicles	At cost	163	139
	Accumulated depreciation	120	121
	Net book value	43	18
Major plant & equipment	At cost	122	122
	Accumulated depreciation	120	120
	Net book value	2	2
Minor plant & equipment	At cost	332	495
	Accumulated depreciation	317	342
	Net book value	15	153
IT equipment	At cost	2,340	2,407
	Accumulated depreciation	2,102	2,189
	Net book value	238	218
Kitchen equipment	At cost	118	122
	Accumulated depreciation	92	102
	Net book value	26	20
Ground improvements	At cost	20	20
	Accumulated depreciation	20	20
	Net book value	-	-
Total fixed assets	At cost	4,454	4,809
	Accumulated depreciation	3,644	3,774
	Net book value	810	1,035

Note 11: Creditors and payables

	30.6.04 Actual $000	30.6.05 Actual $000
Trade creditors	969	700
Fixed assets creditors	88	118
Accrued liabilities and provisions	771	968
Total creditors and payables	1,828	1,786

Note 12 Employee entitlements

		30.6.04 Actual $000	30.6.05 Actual $000
Non-current liabilities	Retirement leave	431	419
	Long-service leave	81	90
	Total	512	509
Current liabilities	Annual leave	420	394
	Long service leave	39	45
	Retirement leave	-	26
	Total current portion	459	465
Total employee entitlements		971	974

Note 13: Financial instruments

 

The department is a party to financial arrangements as part of its everyday operations. These include instruments such as bank balance, investments, sundry receivables and trade creditors.

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. In the normal course of its operations, the department incurs credit risk from sundry debtors and transactions with financial institutions and the New Zealand Debt Management Office (NZDMO).

The department does not require any collateral or security to support financial instruments with financial institutions it deals with, or with NZDMO, as these entities have high credit ratings. For other financial instruments, the department does not have significant concentrations of credit risk.

Fair value

The fair value of all financial instruments is equivalent to the carrying amount disclosed in the Statement of Financial Position. The department is not involved in any off-balance-sheet transactions.

Currency risk and interest rate risk

Currency risk is the risk that debtors and creditors due in foreign currency will fluctuate because of changes in foreign exchange rates.

Interest rate risk is the risk that the department’s return on the funds it has invested will fluctuate due to changes in market interest rates.

The department has no significant exposure to currency risk or interest rate risk on its financial instruments.

All interest earned on short-term deposits with the NZDMO are returned to the Crown as part of the surplus repayable to the Crown.

 

Note 14: Related party information

 

The department is a wholly owned entity of the Crown. The government significantly influences the roles of the department as well as its source of revenue.

The department undertakes transactions with other departments, Crown entities and state-owned enterprises. These transactions are carried out at an arm’s length basis and are not considered to be related-party transactions.

Apart from those transactions described above, the department has not entered into any related-party transactions.

 

Note 15: Major budget variations

 

D1-Policy Advice and Secretariat and Coordination Services

The appropriation for this output class decreased by $218,000. This amount was transferred to Government House Crown development project in Auckland.

Statement of Financial Performance

The variance between actual and budgeted operating costs was due to underspending in the Foreshore and Seabed project. This is reflected in the higher bank balance and higher provision for repayment of surplus.