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These non-departmental schedules and statements present financial information on public funds managed by the department on behalf of the Crown.
These non-departmental balances are consolidated into the Financial Statements of the Government of New Zealand. 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 Financial Statements of the Government of New Zealand.
The non-departmental schedules and statements have been prepared in accordance with the government's accounting policies as set out in the Financial Statements of the Government of New Zealand and in accordance with the relevant Treasury instructions and Treasury circulars.
Measurement and recognition rules applied in the preparation of these non-departmental financial statements and schedules are consistent with New Zealand generally accepted accounting practice as appropriate for public benefit entities.
The following particular accounting policies, which materially affect the measurement of financial results and financial position, have been applied:
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.
All statements are GST exclusive, with the exception of the Schedule of Non-Departmental Assets and Liabilities where the entries for creditors and payables are GST inclusive. In accordance with Treasury instructions, 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 in the financial statements.
Land and buildings are recorded at fair value, as determined by an independent registered valuer. Qv valuations revalued land and buildings in Auckland as at 30 June 2009. Fair value is determined using market-based evidence unless insufficient market-based evidence exists, in which case the land and buildings 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 revalued with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. They are recorded at this fair value, less accumulated depreciation and impairment losses.
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 property, plant and equipment is recognised in the Statement of Non-Departmental Expenses and Capital Expenditure against Appropriations in the period in which it arises.
Other items of property, plant and equipment are recorded at cost, less accumulated depreciation and impairment losses. All individual assets are capitalised if their purchase cost is $2,000 or greater.
All items of property, plant and equipment 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 property, plant and equipment for the current and comparative periods are as follows:
| 2007/08 | 2008/09 | |
|---|---|---|
| Buildings | 2% | 2%-33% |
| Fixtures and fittings | 10% | 10% |
| Furniture | 20% | 20% |
| Motor vehicles | 25% | 25% |
| Plant and equipment | 20% | 20% |
| Other assets | 2%-20% | 2%-20% |
In the 2008/09 financial year the useful life of Government House Wellington was revised during the demolition and construction project.
Future payments are disclosed as commitments at the point where a contractual obligation arises, to the extent that they are equally unperformed obligations.
All financial assets and financial liabilities are measured at amortised cost.
As at 30 June 2009, depreciation expenses on Government House wellington were $3.395 million overspent against the appropriation. This was a result of assets written down during the demolition and construction in 2008/09. It had previously been proposed to make depreciation adjustments at the conclusion of the building project, prior to Government House wellington being re-occupied.
At 30 June 2009, expenditure under permanent legislative authority (the Civil List Act 1979) was $254,000 below the appropriation because of changed or rescheduled travel arrangements.
At 30 June 2009, the department's bank balance was higher than shown in the Supplementary Estimates because of underspending in non-departmental expenses, and higher-than-expected creditor balances.
| Land1 | Building1 | Plant and equipment | Furniture and fittings | Motor vehicles | Other assets | Total | |
|---|---|---|---|---|---|---|---|
| 1 Land and buildings have been revalued to fair value as at 30 June 2009 by an independently contracted registered valuer, QV Valuations. | |||||||
| Cost | |||||||
| Balance at 1 July 2007 | 33,850 | 17,143 | 238 | 2,054 | 160 | 2,850 | 56,295 |
| Additions | – | 146 | – | – | – | – | 146 |
| Disposals | – | – | – | – | – | – | – |
| Balance at 30 June 2008 | 33,850 | 17,289 | 238 | 2,054 | 160 | 2,850 | 56,441 |
| Balance at 1 July 2008 | 33,850 | 17,289 | 238 | 2,054 | 160 | 2,850 | 56,441 |
| Additions | - | 692 | - | 411 | - | - | 1,103 |
| Revaluation increase/(decrease) | (3,630) | 86 | - | - | - | - | (3,544) |
| Disposals | - | (3,999) | (211) | (292) | - | (517) | (5,019 |
| Balance at 30 June 2009 | 30,0220 | 14,068 | 27 | 2,173 | 160 | 2,333 | 48,981 |
| Accumulated Depreciation and Impairment Losses | |||||||
| Balance at 1 July 2007 | – | 341 | 238 | 775 | 160 | 778 | 2,292 |
| Depreciation expense | – | 362 | – | 225 | – | 113 | 700 |
| Eliminate on disposal | – | – | – | – | – | – | – |
| Impairment losses | – | – | – | – | – | – | – |
| Balance at 30 June 2008 | – | 703 | 238 | 1,000 | 160 | 891 | 2,992 |
| Balance at 1 July 2008 | – | 703 | 238 | 1,000 | 160 | 891 | 2,992 |
| Depreciation expense | – | 3,775 | - | 275 | – | 110 | 4,160 |
| Eliminate on disposal | – | (3,999) | (211) | (290) | – | (480) | (4,980) |
| Impairment losses | – | – | – | – | – | – | – |
| Balance at 30 June 2009 | – | 479 | 27 | 985 | 160 | 521 | 2,172 |
| Carrying value | |||||||
| At 30 June and 1 July 2008 | 33,850 | 16,586 | – | 1,054 | – | 1,959 | 53,449 |
| At 30 June 2009 | 30,220 | 13,589 | – | 1,188 | – | 1,812 | 46,809 |
| 30.6.08 | 30.6.09 | |
|---|---|---|
| Actual $000 |
Actual $000 |
|
| 20 | Trade creditors | 22 |
| 403 | Creditors relating to capital expenditure | 1,405 |
| 76 | Accrued expenses | 68 |
| 499 | Total creditors and other payables | 1,135 |