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Publications ~ Annual Report 2007

Notes to the Financial Statements
for the year ended 30 June 2007

 

Note 1: Budget composition

 

    30.06.07 30.06.07
 


Note

Budget
Forecast
$000
Supplementary
Estimates
Changes
$000
Final
Budget
Total
$000
Revenue        
Crown 2 14,417 500 14,917
Other 3 58 - 58
Total revenue   14,475 500 14,975
Expenditure        
Personnel   10,562 2 10,564
Operating 5 3,482 518 4,000
Depreciation 6 340 (20) 320
Capital charge 7 63 - 63
Total expenses   14,447 500 14,947
Net surplus   28 - 28

 

Note 2: Revenue - Crown


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

 

Note 3: Revenue - Other

 

30.06.06   30.06.07 30.06.07

Actual
$000
 
Actual
$000
Main
Estimates
$000
Supplementary
Estimates
$000
63 Rental income 49 58 58
2 Gain on sale of fixed assets 16 - -
65 Total other revenue 65 58 58

 

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

 

2005/06   2006/07
Number of
Staff

Remuneration Band1
Number of
Staff
3 $100,001 - $110,000 3
1 $110,001 - $120,000 2
3 $120,001 - $130,000 1
2 $130,001 - $140,000 5
4 $140,001 - $150,000 2
2 $150,001 - $160,000 1
1 $160,001 - $170,000 3
1 $170,001 - $180,000 2
1 $180,001-$190,000 1
2 $190,001 and above 2

1The Chief Executive’s remuneration is excluded as it is reported by the State Services Commissioner.

 

Note 5: Operating expenses

 

30.06.06   30.06.07 30.06.07

Actual
$000
 
Actual
$000
Main
Estimates
$000
Supplementary
Estimates
$000
42 Audit fees for audit of financial statements 42 46 46
400 Premises rental1 400 400 400
69 Contract for photocopying services 113 100 80

1The 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

 

30.06.06   30.06.07 30.06.07

Actual
$000
 
Actual
$000
Main
Estimates
$000
Supplementary
Estimates
$000
15 Fixtures & fittings 94 115 82
87 Furniture 21 20 20
13 Office equipment 17 15 20
14 Motor vehicles 10 13 15
42 Plant & equipment 39 30 35
120 IT equipment 102 137 138
8 Kitchen equipment 9 10 10
299 Total depreciation 292 340 320

 

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 2007 was 7.5 per cent (2005/06: 8).

 

Note 8: Provision for repayment of surplus

 

30.06.06   30.06.07
Actual
$000
  Actual
$000
106 Current year net surplus/(deficit) 46
106 Total provision for repayment of surplus 46

 

Note 9: Debtors and receivables

 

30.06.06   30.06.07
Actual
$000
  Actual
$000
16 Sundry receivable 38
13 Prepayments 12
29 Total debtors and prepayments 50

 

Note 10: Fixed assets

 

30.06.06   30.06.07
Actual
$000
  Actual
$000
  Fixtures & fittings  
886 At cost 880
400 Accumulated depreciation 488
486 Fixtures & fittings - Net book value 392
  Furniture  
263 At cost 303
212 Accumulated depreciation 231
51 Furniture - Net book value 72
  Office equipment  
450 At cost 316
383 Accumulated depreciation 259
67 Office equipment - Net book value 57
  Motor vehicles  
139 At cost 96
134 Accumulated depreciation 59
5 Motor vehicles - Net book value 37
  Plant & equipment  
623 At cost 610
503 Accumulated depreciation 520
120 Plant & equipment - Net book value 90
  IT equipment  
2,462 At cost 2,224
2,310 Accumulated depreciation 2,078
152 IT equipment - Net book value 146
  Kitchen equipment  
122 At cost 135
110 Accumulated depreciation 112
12 Kitchen equipment - Net book value 23
  Ground improvements  
20 At cost 33
20 Accumulated depreciation 22
- Ground improvements - Net book value 11
  Total fixed assets  
4,965 At cost 4,597
4,072 Accumulated depreciation 3,769
893 Total fixed assets - Net book value 828

 

Note 11: Creditors and payables

 

30.06.06   30.06.07
Actual
$000
  Actual
$000
446 Trade creditors 730
40 Fixed assets creditors 38
620 Accrued liabilities and provisions 643
1,106 Total creditors and payables 1,411

 

Note 12 Employee entitlements

 

30.06.06   30.06.07
Actual
$000
  Actual
$000
  Non-current liabilities  
410 Retirement leave 399
70 Long-service leave 68
480 TOTAL NON-CURRENT LIABILITIES 467
  Current liabilities  
387 Annual leave 381
49 Long service leave 47
49 Retirement leave 71
485 TOTAL CURRENT LIABILITIES 499
965 Total employee entitlements 966

 

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 because of changes in market interest rates.

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

 

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 Co-ordination Services

The appropriation for this output class increased by $353,000 in supplementary estimates for unexpected costs relating to professional services, personnel and IT costs.

D2 – Support services to the Governor-General and maintenance of the two Government Houses

The appropriation for this output class increased by $76,000 in supplementary estimates for additional costs relating to changeover of Governors-General.

D3 – Intelligence assessments on developments overseas

The appropriation for this output class increased by $71,000 in supplementary estimates for unexpected costs relating to personnel and IT costs.

Statement of Financial Performance for the year ended 30 June 2007

The variance between actual and budgeted personnel costs was due to management of staff vacancies in anticipation of higher operating expenses.

The variance between actual and budgeted operating costs was due to costs for legal services and IT implementation.

Statement of Non-Departmental Expenditure and Appropriations for the year ended 30 June 2007

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

During the year there was a changeover of Governors-General (a five-yearly event) which necessitated additional expenses for the salary and allowance for both Governors-General and, with additional overseas travel undertaken, the appropriation was overspent by $20,000.

 

Note 16: Progress toward adopting International Financial Reporting Standards

 

Full adoption of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) by departments will occur in the 2007/08 financial year. Therefore these financial statements are prepared under current New Zealand GAAP (Generally Accepted Accounting Practice).

Treasury is managing the adoption of NZ IFRS for the consolidated financial statements of the government reporting entity. Currently DPMC has undertaken a review of NZ IFRS accounting policies for the financial statements and the implementation guidelines developed by Treasury. The potential area of impact from adoption of NZ IFRS is minimal. At this time it is expected that the recognition requirements and classification and measurement choices in the financial instrument standard NZ IAS 39 are likely to have the greatest impact on reported results compared with current accounting policies.

 

 

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