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Publications ~ Annual Report 2004

Notes to the financial statements
for the year ended 30 June 2004

 

Note 1: Budget composition

	Note	30.6.04 Budget Forecast $000	30.6.04 Supp Estimates Changes $000	30.6.04 Final Budget Total $000
Revenue Crown Other	2 3	12,198 48 -	2,960 - -	15,158 48 -
Total revenue		12,246	2,960	15,206
Expenditure Personnel Operating Depreciation Capital charge	4 5 6	8,485 3,272 400 71	961 2,024 (25) -	9,446 5,296 375 71
Total expenses		12,228	2,960	15,188
Net surplus		18	-	18

Note 2: Revenue-Crown

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

 

Note 3: Other revenue

 

30/6/03 Actual $000		30/6/04 Actual $000	30.6.04 Main Estimates $000	30.6.04 Supp Estimates $000
46 -	Rental income Gain on sale of fixed assets	58 2	48 -	48 -
46	Total other revenue	60	48	48

 

 

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

 

2002/03 Number of Staff	Remuneration Band	2003/04 Number of Staff
4 1 5 3 2 - - 2	$100,001-$110,000 $110,001-$120,000 $120,001-$130,000 $130,001-$140,000 $140,001-$150,000 $150,001-$160,000 $160,001-$170,000 $170,001 and above	4 2 3 3 4 1 1 2

 

(The Chief Executive's remuneration is excluded as it is reported by the State Services Commissioner)

 

Note 5: Operating expenses

 

30/6/03 Actual $000		30/6/04 Actual $000	30.6.04 Main Estimates $000	30.6.04 Supp Estimates $000
32 423 111	Audit fees for audit of    financial statements Premises rental Operating lease rental	33 401 124	30 352 108	32 387 113

 

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

 

30/6/03 Actual $000		30/6/04 Actual $000	30.6.04 Main Estimates $000	30.6.04 Supp Estimates $000
67 15 23 32 3 33 110 8 1	Fixtures & fittings Furniture Office equipment Motor vehicles Major plant & equipment Minor plant & equipment IT equipment Kitchen equipment Ground improvements	66 16 22 21 2 24 126 10 -	80 15 22 50 2 30 193 8 -	80 15 22 50 2 30 168 8 -
292	Total depreciation	287	400	375

 

 

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 2004 was 8.5% ( 8.5 % for 2003).

Note 8: Provision for repayment of surplus

 

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

 

 

Note 9: Debtors and receivables

30.6.03 Actual $000		30.6.04 Actual $000
1,872 5 8	Crown-Debtor Sundry receivable Prepayment	1,702 54 19
1,885	Total debtors and prepayment	1,775

 

Note 10: Fixed assets

30.6.03 Actual $000		30.6.04 Actual $000
729 260	Fixtures & fittings At cost Accumulated depreciation	745 327
469	Fixtures & fittings - net book value	418
219 174	Furniture At cost Accumulated depreciation	216 190
45	Furniture - net book value	26
378 334	Office equipment At cost Accumulated depreciation	398 356
44	Office equipment - net book value	42
189 119	Motor vehicles At cost Accumulated depreciation	163 120
70	Motor vehicles -net book value	43
122 118	Major plant & equipment At cost Accumulated depreciation	122 120
4	Major plant & equipment -net book value	2
332 293	Minor plant & equipment At cost Accumulated depreciation	332 317
39	Minor plant & equipment -net book value	15
2,161 1,982	IT equipment At cost Accumulated depreciation	2,340 2,102
179	IT equipment -net book value	238
97 81	Kitchen equipment At cost Accumulated depreciation	118 92
16	Kitchen equipment - net book value	26
20 20	Ground improvements At cost Accumulated depreciation	20 20
-	Ground improvements -net book value	-
4,247 3,381	Total fixed assets At cost Accumulated depreciation	4,454 3,644
866	Total fixed assets - Net book value	810

 

 

Note 11: Creditors and payables

30.6.03 Actual $000		30.6.04 Actual $000
771 6 1,246	Trade creditors Fixed assets creditors Accrued liabilities and provisions	969 88 771
2,023	Total creditors and payables	1,828

 

 

Note 12 Employee entitlements

30.6.03 Actual $000		30.6.04 Actual $000
355 63	Non-current liabilities Retirement leave Long-service leave	431 81
418		512
356 33 389	Current liabilities Annual leave Long service leave Total current portion	420 39 459
807	Total employee entitlements	971

 

 

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 ant 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 isclosed in the statement of financial position. The department is not involved in any off balance-sheet-transactions 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 market interest rate.

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 rate.

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 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 was increased by $2.960 million for the Foreshore and Seabed project.

Statement of Financial performance

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