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Publications ~ Annual Report 2007

 

NON-DEPARTMENTAL ACTIVITIES

 

STATEMENT OF ACCOUNTING POLICIES
for the year ended 30 June 2007

 

Overview


The following statements and schedules record the expenses, assets and liabilities that the department manages on behalf of the Crown. These non-departmental balances are consolidated into the Financial Statements of the Government of New Zealand and therefore readers of these statements and schedules should also refer to those Financial Statements for the year ended 30 June 2007.


Accounting Policies


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.

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 estimates (main estimates) and those amended by the supplementary estimates and any transfer made by Order in Council under the Public Finance Act 1989.

Goods and services tax (GST)

All statements are GST exclusive, with the exception of the Statement of Financial Position where the entries for creditors and payables and for debtors and receivables are GST inclusive.

Property, plant and equipment valuation

QV Valuations revalued land and buildings in Wellington and Auckland as at 30 June 2006. Land and buildings are recorded at fair value. Fair value is determined using market-based evidence unless insufficient market-based evidence exists, in which case they are valued at optimised depreciated replacement cost.

Land and buildings are revalued at least every three years. Additions between revaluations are recorded at cost.

Other artwork, ornaments and some antique furniture and fittings are valued as necessary. Dunbar Sloane Ltd valued these assets in Wellington as at 30 June 2007. It is proposed to complete the Auckland valuations in the forthcoming year.

Any revaluation surplus arising on the revaluation of a class of asset is transferred directly to the asset revaluation reserve. A revaluation deficit in excess of the asset revaluation reserve balance for the class of fixed asset is recognised in the Statement of Financial Performance in the period in which it arises.

Other property, plant and equipment is initially recorded at cost. All individual assets are capitalised if their purchase cost is $2,000 or greater.

Depreciation of assets

All fixed assets have been depreciated on a straight-line basis that reflects the decline in service potential of the asset during the reporting period. Specific rates of depreciation used for the various classes of fixed assets are as follows:

Buildings 2%
Fixtures & fittings 10%
Furniture 20%
Motor vehicles 25%
Plant & equipment 20%
Ground improvements 20%
Household ornaments 20%
Artwork 2%


Commitments

Future payments are disclosed as commitments at the point where a contractual obligation arises, to the extent that they are equally unperformed obligations.

Contingent liabilities

Contingent liabilities are disclosed at the point at which the contingency is evident.

Changes in accounting policies

There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in the previous period.

Assets and liabilities

All assets and liabilities are recognised at fair value.

 

NON-DEPARTMENTAL ACTIVITIES

 

SCHEDULE OF EXPENSES
for the year ended 30 June 2007

 

The Schedule of Expenses summarises non-departmental expenses that the department administers on behalf of the Crown.

30.06.06   30.06.07 30.06.07

Actual
$000
 
Actual
$000
Main
Estimates
$000
Supplementary
Estimates
$000
  Vote: Prime Minister and Cabinet      
813 Other expenses to be incurred by the Crown 8341 828 828
396 Depreciation 423 460 460
1,209 Total non-departmental expenses 1,257 1,288 1,288

1 At 30 June 2007, expenditure under permanent legislative authority (the Civil List Act 1979) exceeded the forecast appropriation.

 

The accompanying accounting policies and notes form part of and are to be read in conjunction with these statements.

 

NON-DEPARTMENTAL ACTIVITIES

 

STATEMENT OF EXPENDITURE AND APPROPRIATIONS
for the year ended 30 June 2007

 

The Statement of Expenditure and Appropriations details expenditure and capital payments incurred against appropriations.

The department administers these appropriations on behalf of the Crown.

30.06.06   30.06.07 30.06.07

Actual
$000
 
Actual
$000
Main
Estimates
$000
Supplementary
Estimates
$000
  Vote: Prime Minister and Cabinet      
  Other expenses to be incurred by the Crown      
29 Fees for the Commissioner of Security Warrants (NZSIS Amendment (No 2) Act 1999) 16 30 30
784 Government House – other payments (Civil List Act 1979) 818 798 798
813 Total Appropriations for other expenses incurred by the Crown 834 828 828
  Purchase or development of capital assets by the Crown      
795 Government House 146 150 150
795 Total Appropriations for purchase or development of Crown assets 146 150 150

 

The accompanying accounting policies and notes form part of and are to be read in conjunction with these statements.


NON-DEPARTMENTAL ACTIVITIES

 

SCHEDULE OF ASSETS AND LIABILITIES
for the year ended 30 June 2007

 

The Schedule of Assets and Liabilities summarises the assets and liabilities that the department administers on behalf of the Crown.

30.06.06   30.06.07 30.06.07

Actual
$000
 
Actual
$000
Main Estimates
$000
Supplementary
Estimates
$000
  Vote: Prime Minister and Cabinet      
  Current assets      
644 Bank 442 272 365
  Property, plant and equipment      
33,850 Land 33,850 27,660 33,850
17,038 Buildings 16,802 16,181 16,844
- Plant and equipment - 28 -
20 Furniture and fittings 1,2791 98 -
37 Motor vehicles - - -
533 Other assets (artworks, ornaments) 2,072 386 474
52,122 Total Non-departmental assets 54,445 44,625 51,533
  Current liabilities      
136 Accounts payable 15 50 50
22 Accrued liabilities 48 - -
221 Fixed asset accruals 127 50 50
379 Total non-departmental liabilities 190 100 100

1 A revaluation was done at 30 June 2007 of furniture and fittings, artworks and ornaments at Government House Wellington resulting in an increase in value of these assets.

The accompanying accounting policies and notes form part of and are to be read in conjunction with these statements.

 

NON-DEPARTMENTAL ACTIVITIES

 

SCHEDULE OF COMMITMENTS
for the year ended 30 June 2007

 

There are no capital or operating commitments as at 30 June 2007.

(30 June 2006: Nil)

 

NON-DEPARTMENTAL ACTIVITIES

 

SCHEDULE OF CONTINGENT LIABILITIES
for the year ended 30 June 2007

 

Vote: Prime Minister and Cabinet

There are no contingent liabilities as at 30 June 2007.

(30 June 2006: Nil)





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