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These forecast financial statements for the Department of the Prime Minister
and Cabinet contain all of the statements specified in Section 34A of the
Public Finance Act 1989 as amended by the Public Finance Act 1994.
Statement Of Financial Performance
for the Year Ending 30 June 2000
|
|
1998/99 |
1999/00 |
|
|
|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Revenue Crown Other Interest |
12,359 40 70 |
12,359 40 70 |
12,383 45 60 |
|
Total Revenue |
12,469 |
12,469 |
12,488 |
|
Expenses Personnel Operating Depreciation Capital charge |
7,805 3,923 500 161 |
7,805 3,791 500 161 |
7,805 3,927 550 131 |
|
Total Expenses |
12,389 |
12,257 |
12,413 |
|
Other Expenses Profit on sale of physical assets |
160 20 |
160 20 |
- - |
|
Net Surplus/(Deficit) |
(60) |
72 |
75 |
Statement of Estimated Financial Position as at
30 June 1999 and Forecast Financial Position as at 30 June 2000
|
|
Actual Financial Position as at 30 June 1998
$000 |
Estimated Financial Position as at 30 June 1999
$000 |
Forecast Financial Position as at 30 June 2000
$000 |
|
Current Assets Cash and bank balances Short-term deposits with the Crown Prepayments Receivables and advances Inventory |
908 1,700 12 7 233 |
388 1,500 - 2 300 |
281 1,500 - 2 200 |
|
Total Current Assets |
2,860 |
2,190 |
1,983 |
| Physical Assets |
943 |
1,008 |
1,058 |
|
Total Assets |
3,803 |
3,198 |
3,041 |
|
Current Liabilities Payables and provisions Provision for payment of surplus Provision for employee entitlements |
1,288 690 359 |
1,190 232 470 |
1,190 75 470 |
|
Total Current Liabilities |
2,337 |
1,892 |
1,735 |
|
Taxpayers' Funds General funds |
1,466 |
1,306 |
1,306 |
|
Total Taxpayers' Funds |
1,466 |
1,306 |
1,306 |
|
Total Liabilities and Taxpayers' Funds |
3,803 |
3,198 |
3,041 |
Statement
of Cash Flows
for the Year Ending 30 June 2000
|
|
1998/99 |
1999/00 |
|
|
|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Cash Flows from Operating Activities Cash provided from Supply of outputs to: Crown Other Interest Cash disbursed to: Output expenses Capital charge |
12,359 40 75
(11,906) (161) |
12,359 40 75
(11,774) (161) |
12,383 45 60
(11,632) (131) |
|
Net Cash Flows from Operating Activities |
407 |
539 |
725 |
|
Cash Flows from Investing Activities Cash provided from: Sale of physical assets Cash disbursed to: Purchase of physical assets |
55
(624) |
55
(624) |
-
(600) |
|
Net Cash Flows from Investing Activities |
(569) |
(569) |
(600) |
|
Cash Flows from Financing Activities Cash disbursed to: Payment of surplus to the Crown |
(690) |
(690) |
(232) |
|
Net Cash Flows from Financing Activities |
(690) |
(690) |
(232) |
|
Net Increase/(Decrease) in Cash Held |
(852) |
(720) |
(107) |
|
Opening Total Cash Balances at 1 July 1997 |
2,608 |
2,608 |
1,888 |
|
Closing Total Cash Balances at 30 June 1998 projected |
1,756 |
1,888 |
1,781 |
Reconciliation
of Net Cash Flows from Operating Activities
to Net Surplus/(Deficit) in the Operating Statement
for the Year Ending 30 June 2000
|
|
1998/99 |
1999/00 |
|
|
|
Budgeted
$000 |
Estimated Actual $000 |
Budget
$000 |
|
Surplus/(Deficit) from Operating Statement |
(60) |
72 |
75 |
|
Add/(deduct) non-cash items Depreciation |
500 |
500 |
550 |
|
Movements in working capital items Decrease in receivables and advances Decrease in Inventories Decrease in payables and provisions |
17 (67) 37 |
17 (67) 37 |
100 - - |
|
Items classified as investing activities Net (gain)/loss on sale of physical assets |
(20) |
(20) |
- |
|
Net Cash Flows from Operating Activities |
407 |
539 |
725 |
Statement of Movements in Taxpayers' funds (Equity) as at 30 June 2000
|
|
Estimated Position as at 30 June 1999 $000 |
Forecast Position as at 30 June 2000 $000 |
|
Taxpayers' funds at start of period Prior-period adjustments |
1,466 - |
1,306 - |
|
Amended taxpayers' funds at start of period Taxpayers' funds at end of period |
1,466 1,306 |
1,306 1,306 |
|
Change in taxpayers' funds during the period Less change in taxpayers' funds through contributions from owners |
160
160 |
-
- |
|
Change in taxpayers' funds |
- |
- |
Forecast Details of Fixed Assets by Category as at 30 June 2000
|
|
30 June 1999 |
30 June 2000 Forecast Position |
||
|
|
Estimated Actual Position $000 |
Cost
$000 |
Accumulated Depreciation $000 |
Net Book Value $000 |
|
Furniture and Fittings |
184 |
592 |
300 |
292 |
|
Motor Vehicles |
161 |
300 |
136 |
164 |
|
Plant and Equipment |
663 |
3,264 |
2,662 |
602 |
|
TOTAL |
1008 |
4,156 |
3,098 |
1,058 |
Statement of Objectives Specifying the Financial Performance forecast for the Department for the Year Ending 30 June 2000
|
|
Unit |
1998/99 |
1999/00 |
|
|
|
|
Budgeted |
Estimated Actual |
Budget |
|
Operating Results Revenue: interest Output expenses Other expenses Profit on sale of assets Operating surplus before capital charge Net surplus (Deficit) |
$000 $000 $000 $000 $000 $000 |
70 12,389 160 20 101 (60) |
70 12,257 160 20 233 72 |
60 12,413 - - 206 75 |
|
Working Capital Net Current assets Current ratio Liquid ratio Average creditors outstanding |
$000 % % days |
298 117 100 50 |
298 116 100 50 |
248 114 103 50 |
|
Resource Utilisation Physical assets: Total physical assets at year end Additions as % of physical assets Taxpayers' funds: Level at year-end |
$000 %
$000 |
1008 60
1,306 |
1,008 60
1,306 |
1,058 58
1,306 |
|
Forecast Net Cash Flows Surplus/(deficit) operating activities Surplus/(deficit) investing activities Surplus/(deficit) financing activities Net increase/(decrease) in cash held |
$000 $000 $000 $000 |
407 (569) (690) (852) |
539 (569) (690) (720) |
725 (600) (232) (107) |
|
Human Resources Staff turnover Average length of service Total staff |
% years no. |
20 4.5 130 |
22 4.8 126 |
20 5.8 126 |
The department aims to provide a work environment and conditions of employment that enable it to recruit and retain staff of the calibre (e.g. with the skills and experience) it requires.
Statement Of Objectives - Specifying the Performance forecast for each Class of Outputs for the Year Ending 30 June 2000
The Department of the Prime Minister and Cabinet has committed to provide output classes in 1999/00 which meet the requirements of the Prime Minister and various purchasers in terms of their nature, timeliness, quality and quantity specifications and costs.
A1 Output Operating Statements: 1999/00
|
Departmental Output Class |
Description |
Revenue: Crown $000 |
Revenue: Depts $000 |
Revenue: Other $000 |
Total Expenses $000 |
Surplus/ (deficit) |
|
Vote Prime Minister and Cabinet |
|
|
|
|
|
|
|
D1 Policy Advice |
Frank and impartial advice to the Prime Minister. |
3,689 |
- |
- |
3,689 |
- |
|
D2 Secretariat Services
|
For Cabinet, its committees, and the Executive Council. |
1,711 |
- |
- |
1,711 |
- |
| D3 Intelligence Assessments on Developments Overseas |
Assessments provided on events and trends overseas affecting NZ interests. |
2,241 |
- |
- |
2,241 |
- |
|
D4 Communication Services |
Coordinating and monitoring the Government's Public information programmes. |
261 |
- |
- |
261 |
- |
|
D5 Maintenance of Governor-General's Residences |
General upkeep of Government House and grounds. |
1,255 |
- |
45 |
1,285 |
15 |
|
D6 Support Services to the Governor-General |
General support and personal services to the Governor-General. |
1,852 |
- |
- |
1,852 |
- |
|
D7 Policy Advice and Coordination of Crime Prevention Strategy |
Policy advice on crime prevention and supporting community crime prevention responses. |
1,374 |
- |
- |
1,374 |
- |
SERVICE PERFORMANCE OBJECTIVES - OUTPUT PERFORMANCE
D1 - POLICY ADVICE
(Provided by the Policy Advisory Group, the Domestic and External Security Secretariat (DESS) and the Cabinet Office)
Description
This class of outputs involves the provision of immediate, medium- and long-term policy advice delivered freely and frankly to the Prime Minister and, at the Prime Minister's request, to other Ministers. Advice is provided on areas such as economic development, enterprise, commerce, fiscal and social policy, Treaty issues, justice, foreign affairs, defence, primary industries, industrial relations, machinery of government issues and the provision of advice on domestic and external security issues and disaster recovery coordination.
Advice is provided on constitutional policy and procedural issues to the Governor-General, the Prime Minister and, at the Prime Minister's direction, other Ministers, and government departments. Support is also provided in the coordination of the Government's Legislation Programme.
As part of this output, the Department of the Prime Minister and Cabinet also promotes the collective interest of Government, monitors interdepartmental coordination of policy development and issues, and supports the Prime Minister in the formulation and implementation of the Government's strategic priorities.
Quantity, Quality and Timeliness
Advice provided will be professional, high quality, comprehensive, practical, timely and based on a full and impartial analysis of all key information from all relevant sources.
Advice is impartial, effective and timely and provided to the satisfaction of the Governor-General and the Prime Minister.
Briefings and other papers are prepared within the timeframe required by the Prime Minister.
The Prime Minister's satisfaction with the quality, relevance and timeliness of the advice will be assessed on a day-to-day basis through direct feedback from the Prime Minister to the Chief Executive, Director, and/or specific advisors.
Timely assessment of the strategic alignment between the Government's Strategic Priorities and key result areas (KRA) as part of the public service CEO performance management cycle, is completed within agreed timeframes.
The department will maintain the capacity to give advice by careful selection of staff in a range of disciplines from both the public and private sectors.
Feedback will be sought regularly from other agencies as to the quality of the services provided.
The quality and timeliness of the services provided to the Inspector-General and the Parliamentary Committee on Intelligence and Security will be assessed by formal feedback mechanisms.
Interdepartmental security coordination and planning for APEC 99 meetings is conceptually prepared, and the counter-terrorist aspect exercised and evaluated and prepared to meet meeting deadlines.
Appointments to intelligence oversight positions including the new Commissioner of Security Warrants, are well coordinated.
Y2K national level contingency planning is effectively coordinated.
Cost
Policy advice will be provided within the sum of $4.150 million including GST. The GST exclusive figure of $3.689 million will be funded by revenue: Crown.
D2 - SECRETARIAT SERVICES
(Provided by the Cabinet Office)
Description
This class of outputs involves the provision of impartial secretariat services to Cabinet, Cabinet committees, the Governor-General and the Executive Council, and the promulgation of their decisions. It also includes the development and promulgation of information, advice and guidelines on the nature and operations of the central processes of executive government, and the administration of Royal Honours.
Quantity, Quality and Timeliness
New procedures to reflect the decisions of the Prime Minister and Cabinet to streamline the conduct of Government business are developed to the satisfaction of the Prime Minister and Ministers.
Impartial and effective secretariat services will be provided for all meetings of Cabinet and Cabinet committees, and agendas and papers will be distributed to Ministers to enable timely receipt by Ministers.
Summaries are accurate, well judged and reflect Cabinet Office Manual Standards.
It is expected that at least 95% of all minutes distributed will not require amendment, and that at least 80% of all minutes will be distributed within two days, with 95% distributed within three days of the meeting.
The Prime Minister as Chair of Cabinet is satisfied with the impartiality and effectiveness of services provided to Cabinet and the accuracy and impartiality of minutes.
An up-to-date Cabinet Office Manual is maintained and circulars prepared as required.
Briefings to Ministers and officials on Cabinet Office procedures and requirements will be provided as required.
Secretariat services will be provided which satisfy the requirements of the Governor-General, the Prime Minister, and other Ministers. Their views will be sought as to the quality of the services provided.
The new New Zealand Royal Honours System will be implemented within agreed timeframes to the satisfaction of the Prime Minister and adequate insignia stocks will be maintained to meet all requirements.
Cost
Outputs provided to the Crown will be produced within the sum of $1.925 million, including GST. The GST exclusive figure of $1.711 million will be funded by revenue: Crown.
D3 - INTELLIGENCE ASSESSMENTS ON DEVELOPMENTS OVERSEAS
(Provided by the External Assessments Bureau)
Description
This class of outputs involves the provision of information and reports on events and trends overseas affecting New Zealand's interests. It involves the identification, collation, evaluation and analysis of information on topics likely to affect New Zealand's foreign relations and external interests and the preparation of intelligence assessments and reports on political, economic, environmental, biographic, strategic, military and scientific subjects as required.
Quantity, Quality and Timeliness
Major assessments will be prepared according to a forward work programme agreed with the National Assessments Committee (NAC) on a quarterly basis, and modified to reflect external activity and the nature of developments overseas.
All assessments provided will be accurate, comprehensive, succinct, pertinent, informative and timely.
Assessments will be provided according to a programmed deadline or at short notice, depending on the circumstances.
The number of assessments provided will be related to the amount of external activity and it is expected that at least 90% of assessments submitted to NAC will require no more than minor revision.
Regular weekly reports which summarise key overseas developments will be provided to the Prime Minister and other Ministers.
Formal feedback will be sought once a year from the Prime Minister and Ministers on the quality of reports in terms of agreed performance standards.
Senior officials will be provided with an annual report on work output, including the number of assessments and their nature and comparative historical data.
Databases will be maintained which enable the bureau to respond appropriately to both anticipated and unexpected reporting requirements.
Information will be managed appropriately to prevent its deterioration and enhance its retrieval.
Cost
D4 - COMMUNICATION SERVICES
(Provided by the Communications Unit)
Description
This class of outputs provides for services to assist with the purchase of media time and space for Government public information programmes and the monitoring of information programmes against the Government's guidelines and assisting their delivery. Outputs will also include the development of information strategies and the facilitation of public information in areas of inter-agency or strategic policy.
Quantity, Quality and Timeliness
Numbers of specific policy campaigns coordinated will be reported.
Government public information programmes are managed to a level acceptable to the Prime Minister whose views will be sought on a regular basis.
Active liaison will be maintained with key officials and key agencies.
Feedback will be sought from departments and agencies assisted by the unit and from other units within DPMC as to the effectiveness of the advice offered.
At least two 'best practice' and compliance seminars will be held for departmental communications managers by 30 June 2000.
All Government volume incentive discount media contracts are negotiated annually and Government agencies notified within 30 days of the outcome.
The volume incentive discount arrangements and other incentives available to government, to all extents possible, will be comparable to those agreed with private enterprise for similar advertising volumes.
The numbers of offers of assistance and/or guidance made will be recorded.
Cost
D5 - MAINTENANCE OF THE GOVERNOR-GENERAL'S RESIDENCES
(Provided by Government House)
Description
This class of outputs provides for the general upkeep of the two Government Houses in Wellington and Auckland, including the maintenance and security of the buildings and the landscaping, development and maintenance of the gardens and grounds. It includes the maintenance of the other residences and buildings associated with the two Government Houses.
Quantity, Quality and Timeliness
Programmes are planned and implemented for garden development, building preservation and restoration of valuable art works and that all medium term programmes are kept up to date and actioned.
The Governor-General's views on the quality and adequacy of the buildings and grounds maintenance will be sought regularly.
A capital and maintenance programme will be submitted annually for approval and management will meet regularly to assess progress against the approved programme.
All contracts let for maintenance, security and gardening meet required specifications.
All contractors meet pre-agreed contract standards.
Quarterly progress and variance reports are submitted to management.
A time line for maintenance is drawn up and regularly monitored and updated.
Cost
D6 - SUPPORT SERVICES TO THE GOVERNOR-GENERAL
(Provided by the Clerk of the Executive Council and Government House)
Description
This class of outputs includes the provision of financial, administrative, communications, travel and advisory services to the Office of the Governor-General and domestic and personal services for the Governor-General. It also includes the conducting of a range of official functions, investitures and receptions at Government House and hosting State and other dignitaries.
Quantity, Quality and Timeliness
Advice and financial, public communications, correspondence, security, travel and administrative services are made available to meet the requirements of the Office of the Governor-General.
Events including investitures, receptions, credentials ceremonies, award ceremonies, tours and charity events will be well organised, efficient and hospitable to a standard agreed with the Governor-General.
The Governor-General's 1999/00 programme will be compiled with special attention to APEC 99, associated visits by Heads of State, America's Cup regatta, and other millennium year 2000 events.
The Governor-General's programme will be well balanced and the services provided will be discreet, dignified, efficient and meet his requirements.
Personal and domestic support services will be provided to a level which preserves and supports the functions and dignity of the Office of the Governor-General.
Staff will be well prepared for responding to emergency situations.
Cost
D7 - POLICY ADVICE AND COORDINATION OF CRIME PREVENTION STRATEGY
(Provided by the Crime Prevention Unit)
Description
This class of outputs provides for the Crime Prevention Unit to advise the Government on crime prevention, to plan, coordinate and monitor the crime prevention strategy, and to build partnerships with Government agencies, local authorities and communities which will allow the development of and support for specific crime prevention responses.
Quantity, Quality and Timeliness
Inter-agency crime prevention strategy will be coordinated and key departments; crime prevention outcomes and contributing outputs will be consistent with the Government's strategic priorities
Appropriate and timely policy advice will be provided to the Prime Minister and the Cabinet on the crime prevention risks and opportunities of other (non-dedicated) Government policies.
All relevant policy contributions to strategic interagency initiatives will be delivered to the required quality and timeliness standards.
The expected number of Safer Community Councils will be operationally active and receive funding on time - subject to meeting compliance conditions.
The Prime Minister will expect that all grants are made within prescribed guidelines and financial requirements. Satisfactory monitoring and evaluation mechanisms will be implemented.
A comprehensive implementation plan and evaluation process for demonstration projects will be maintained, as appropriate to 30 June 2000.
The Crime Prevention Newsletter will be published four times per year and disseminated to SCCs, local bodies and key crime prevention agencies.
Cost
STATEMENT OF SIGNIFICANT UNDERLYING ASSUMPTIONS
These statements have been compiled on the basis of Government policies and the department's purchase agreement with the Prime Minister at the time the statements were finalised.
These forecast financial statements comply with generally accepted accounting practice. The measurement base applied is historical cost adjusted for revaluations of assets. Revaluations are made to reflect the forecast service potential or economic benefit to be obtained through the control of assets.
The accrual basis of accounting has been used for the preparation of these financial statements.
These statements have been prepared on a going-concern basis.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Specific Accounting Policies
Goods and services tax
The Statement of Unappropriated Expenditure and Statements of Departmental and Non-Departmental Expenditure and Appropriations are inclusive of GST. All other statements are GST exclusive. The Statement of Financial Position is also exclusive of GST, except for Creditors and Payables and Debtors and Receivables which are GST inclusive.
The amount of GST owing to or from the Inland Revenue Department at balance date, being the difference between Output GST and Input GST, is included in Creditors and Payables or Debtors and receivables (as appropriate).
Fixed assets
All fixed assets have been valued on historical cost basis except for Crown assets which are included at insurance indemnity value. All individual assets or groups of assets are capitalised if their historical cost is $2,000 or greater.
Gains and losses arising from the sale or disposal of assets have been included in the Statement of Financial Performance.
Depreciation of assets
All fixed assets other than land 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:
| Fixtures and fittings | 10% |
| IT equipment | 33% |
| Office equipment | 20% |
| Furniture | 20% |
| Motor vehicles | 25% |
| Kitchen equipment, e.g. domestic appliances | 20% |
| Major plant and machinery | 10% |
| Minor plant and machinery | 20% |
Taxation
The department is exempt from the payment of income tax in terms of the Income Tax Act 1976. Accordingly, no charge for income tax has been provided for.
Financial Instruments
The department is party to financial arrangements in the form of bank accounts, accounts receivable, accounts payable and accruals as part of its everyday operations. These are reflected in the Statement of Financial Position at their fair value. Revenue and expenses in relation to the financial instruments are recognised in the Statement of Financial Performance in arriving at the operating surplus.
Cost Allocation
Direct costs are expenses incurred from activities in producing outputs. These costs are charged directly to the related output classes. Direct costs represent 91 percent of total departmental appropriation for output costs.
Indirect costs are expenses incurred by the corporate services unit and the office of the chief executive. Indirect costs are allocated to each output class in proportion to the level of appropriation in relation to the total vote. Indirect costs represent 9 percent of total departmental appropriation for output costs.
Leases
The department leases office premises and photocopiers. As all risks and ownership are retained by the lessor, these leases are classified as operating leases. Operating lease costs are expensed in the period in which they are incurred.
Provision for Employee Entitlements
Annual leave is recognised as it is accrued to employees. Long service leave is determined on the basis of 20 days after 20 years service and it must be taken within five years of it falling due. Future payments are disclosed as commitments at the point where contractual obligation arises, to the extent that they are equally unperformed obligations. Commitments relating to employment contracts are not disclosed.
Contingent Liabilities
Contingent liabilities are disclosed at the point at which the contingency is evident.
Changes In Accounting Policies
Except for the change in the depreciation rate applied to EDP assets, all other policies have been applied on bases consistent with those used in the previous period.