Annual Report 30 June 2012

Financial Statements

For the year ended 30 June 2012

Statement of Comprehensive Income

For the year ended 30 June 2012

30/06/11 Actual $000		Notes	30/06/12 Actual $000	30/06/12 Main Estimates $000	30/06/12 Supp* Estimates $000
	REVENUE
365,623	Crown		364,415	400,845	383,415
15,323	Other	Note 2	15,416	15,109	15,150
34	Interest		22	100	100
170	Gain on sale of assets		230	-	-
381,150	Total Revenue		380,083	416,054	398,665
	EXPENDITURE
163,689	Personnel	Note 3	160,006	167,539	168,869
78,808	Operating	Note 4	79,466	127,814	100,672
55,470	Accommodation	Note 5	48,046	53,056	52,111
25,476	Depreciation	Note 6	23,465	22,918	23,112
2,796	Amortisation on intangible assets	Note 7	2,520	4,334	2,369
37,772	Capital charge	Note 8	40,182	40,293	40,182
6,118	Net loss on foreign exchange	Note 19	7,581	-	-
370,129	Total Output Expenses		361,266	415,954	387,315
	RE-MEASUREMENT
3,514	Net loss/(gain) on derivative financial instruments	Note 20	(1,372)	-	-
107	Movement in discount rate for Long Service Leave and Retirement Leave	Note 17	936	-	-
3,621	Total Re-measurement		(436)	-	-
373,750	Total Expenses		360,830	415,954	387,315
7,400	Net operating surplus/(deficit)		19,253	100	11,350
	OTHER COMPREHENSIVE INCOME
-	Gain on property revaluations		60,038	-	60,038
7,400	Total Comprehensive Income		79,291	100	71,388

* These are the estimated actuals according to the 2011/12 Supplementary Estimates as shown in the 2012/13 Main Estimates. The individual output statements disclosed with the Statements of Service Performance reflect the appropriations for the 2011/12 Supplementary Estimates. The accompanying accounting policies and notes form part of these financial statements. For information on major variances against budget refer to Note 23 (page 113).

Statement of Changes in Taxpayers’ Funds

For the year ended 30 June 2012

30/06/11 Actual $000		Notes	30/06/12 Actual $000	30/06/12 Main Estimates $000	30/06/12 Supp* Estimates $000
505,521	Taxpayers’ Funds Brought Forward as at 1 July		501,825	505,446	501,825
7,400	Total comprehensive income		79,291	100	71,388
(11,021)	Return of operating surplus to the Crown	Note 15	(18,817)	(100)	(11,350)
-	Capital injections		-	20,000	-
(75)	Capital withdrawals		-		-
(3,696)	Movement in Taxpayers’ Funds for the Year		60,474	20,000	60,038
501,825	Taxpayers’ Funds as at 30 June	Note 9	562,299	525,446	561,863

* These are the estimated actuals according to the 2011/12 Supplementary Estimates as shown in the 2012/13 Main Estimates. The accompanying accounting policies and notes form part of these financial statements. For information on major variances against budget refer to Note 23 (page 113).

Statement of Financial Position

As at 30 June 2012

30/06/11 Actual $000		Notes	30/06/12 Actual $000	30/06/12 Main Estimates $000	30/06/12 Supp* Estimates $000
	TAXPAYERS’ FUNDS
403,759	General funds	Note 9	404,195	427,380	403,759
98,066	Property revaluation reserve	Note 9	158,104	98,066	158,104
501,825	Total Taxpayers’ Funds		562,299	525,446	561,863
	Represented by:
	CURRENT ASSETS
49,416	Cash and cash equivalents		66,342	30,185	32,833
100,875	Debtor Crown		102,451	81,779	112,630
2,281	Debtors and other receivables	Note 10	2,673	2,146	2,281
9,001	Prepayments	Note 11	6,693	6,023	9,001
151	Derivative financial instruments	Note 20	112	1,156	151
161,724	Total Current Assets		178,271	121,289	156,896
	NON-CURRENT ASSETS
3,271	Debtors and receivables	Note 10	3,192	3,279	3,271
3,921	Prepayments - leased land	Note 11	3,773	3,995	3,921
395,375	Property, plant, and equipment	Note 12	447,475	433,802	451,297
6,433	Intangible assets	Note 13	5,412	14,455	15,706
409,000	Total Non-Current Assets		459,852	455,531	474,195
570,724	Total Assets		638,123	576,820	631,091
	CURRENT LIABILITIES
16,453	Creditors and other payables	Note 14	12,547	17,022	16,453
11,021	Return of operating surplus	Note 15	18,817	100	11,350
427	Provisions for other costs	Note 16	6,531	213	427
17,574	Provision for employee entitlements	Note 17	17,781	16,282	17,497
6,200	Derivative financial instruments	Note 20	4,790	3,690	6,200
51,675	Total Current Liabilities		60,466	37,307	51,927
	NON-CURRENT LIABILITIES
6,279	Provisions for other costs	Note 16	3,550	2,536	6,832
10,945	Provision for employee entitlements	Note 17	11,808	11,531	10,469
17,224	Total Non-Current Liabilities		15,358	14,067	17,301
68,899	Total Liabilities		75,824	51,374	69,228
501,825	NET ASSETS		562,299	525,446	561,863
570,724	Total Liabilities and Taxpayers' Funds		638,123	576,820	631,091

* These are the estimated actuals according to the 2011/12 Supplementary Estimates. The accompanying accounting policies and notes form part of these financial statements. For information on major variances against budget refer to Note 23 (page 113).

Statement of Cash Flows

For the year ended 30 June 2012

30/06/11 Actual $000		Notes	30/06/12 Actual $000	30/06/12 Main Estimates $000	30/06/12 Supp* Estimates $000
	OPERATING ACTIVITIES
	Cash provided from:
328,549	Receipts from Crown		362,839	395,291	371,660
14,658	Receipts from Departments and other		15,236	15,209	15,150
-	Interest		22	-	100
967	Goods and services tax (net)		-	-	-
344,174			378,097	410,500	386,910
	Cash disbursed to:
(163,649)	Payments to employees		(155,253)	(166,946)	(168,335)
(139,793)	Payments to suppliers		(137,375)	(181,463)	(153,317)
(37,772)	Payments for capital charge		(40,182)	(40,293)	(40,182)
-	Goods and services tax (net)		(528)	-	-
(341,214)			(333,338)	(388,702)	(361,834)
2,960	Net cash flow from operating activities	Note 18	44,759	21,798	25,076
	INVESTING ACTIVITIES
	Cash provided from:
1,735	Sale of property, plant , equipment		416	37,986	300
	Cash disbursed for:
(18,088)	Purchase of property, plant, equipment		(15,729)	(72,998)	(19,296)
(2,234)	Purchase of intangible assets		(1,499)	(7,000)	(11,642)
(18,587)	Net cash flow from investing activities		(16,812)	(42,012)	(30,638)
	FINANCING ACTIVITIES
	Cash provided from:
-	Capital injections		-	20,000	-
	Cash disbursed for:
(3,084)	Return of operating surplus		(11,021)	(10,100)	(11,021)
(3,084)	Net cash flow from financing activities		(11,021)	9,900	(11,021)
(18,711)	Net increase/(decrease) in cash		16,926	(10,314)	(16,583)
68,127	Add cash at the beginning of the year		49,416	40,499	49,416
49,416	Closing cash at the end of the year		66,342	30,185	32,833

The GST (net) component of operating activities reflects the net GST paid and received to/from the Inland Revenue Department. The GST component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

* These are the estimated actuals according to the 2011/12 Supplementary Estimates. The accompanying accounting policies
and notes form part of these financial statements.

Statement of Commitments

As at 30 June 2012

30/06/11 Actual $000		30/06/12 Actual $000
	CAPITAL COMMITMENTS
	Land and buildings
5,411	Less than one year	4,880
5,411	Total capital commitments	4,880
	NON-CANCELLABLE OPERATING LEASES
	Accommodation
30,554	Less than one year	32,291
59,661	One to five years	55,603
26,547	More than five years	40,985
116,762	Total non-cancellable operating lease commitments	128,879
122,173	Total Commitments	133,759

Capital commitments

Capital commitments are the aggregate amount of capital expenditure contracted for the acquisition
of property, plant, and equipment and intangible assets that have not been recognised as a liability
as at 30 June 2012.

Non-cancellable operating leases

The Ministry leases property, plant and equipment in the normal course of its business. The majority
of these leases are for premises which have a non-cancellable leasing period.

The Ministry’s non-cancellable operating leases have varying terms, escalation clauses and renewal rights. There are no restrictions placed on the Ministry by any of its leasing arrangements.

The accompanying accounting policies and notes form part of these financial statements.

Statement of Contingent Liabilities and Contingent Assets

As at 30 June 2012

The Ministry has a contingent liability in the form of an indemnity as at 30 June 2012 to HSBC
for $0.788 million (30 June 2011: $0.749 million).

The Ministry has other contingent liabilities relating to employment disputes and property disputes
as at 30 June 2012 for $0.462 million (30 June 2011: $0.508 million).

The Ministry has one contingent asset relating to a refund receivable due to a property dispute for
$4,550 as at 30 June 2012 (30 June 2011: $13,000).

Statement of Departmental Unappropriated Expenditure and Capital Expenditure

For the year ended 30 June 2012

The Ministry had no departmental unappropriated expenditure as at 30 June 2012 (30 June 2011: nil).

Departmental Net Asset Schedule

The Ministry had no breaches of projected departmental net asset schedules as at 30 June 2012
(30 June 2011: nil).

The accompanying accounting policies and notes form part of these financial statements.

Statement of Departmental Expenditure and Capital Expenditure against Appropriations

For the year ended 30 June 2012

30/06/11 Actual $000		30/06/12 $000	30/06/12 Appropriation Voted* $000
	VOTE: FOREIGN AFFAIRS AND TRADE
	Appropriations for Output Expenses
1,474	Administration of Diplomatic Privileges and Immunities	1,440	1,720
19,831	Consular Services	19,366	21,737
1,460	Pacific Security Fund	1,088	2,143
58,892	Policy Advice and Representation: International Institutions	67,212	73,729
211,399	Policy Advice and Representation: Other Countries	196,606	216,042
638	Policy Advice and Representation: Other Countries (Permanent Legislative Authority)	18	20
148	Promotional Activities: Other Countries	145	225
14,253	Services for Other New Zealand Agencies Overseas	14,277	14,485
18	Rugby World Cup Guests of Government	3,276	3,455
68	Hosting of the Pacific Islands Forum 2011	3,587	3,650
308,181	Sub-total	307,015	337,206
	VOTE: OFFICIAL DEVELOPMENT ASSISTANCE
	Appropriations for Output Expenses
-	Management of New Zealand Official Development Assistance	54,251	61,359
50,863	Management of Official Development Assistance Programme	-	-
11,085	Strategic Advice and Evaluation	-	-
61,948	Sub-total	54,251	61,359
370,129	Total Expenditure and Appropriations Before re-measurement	361,266	398,565
	Re-measurements
3,514	Unrealised loss/(gain) on the re-measurement of foreign exchange contracts	(1,372)	-
107	Movement in discount rate for Long Service Leave and Retirement Leave	936	-
3,621	Total re-measurements	(436)	-
373,750	Total Expenditure after re-measurement	360,830	398,565
	Appropriations for Departmental Capital Expenditure
20,322	Capital expenditure (Permanent Legislative Authority)	17,228	30,938
20,322	Total Capital Expenditure	17,228	30,938

* This includes adjustments made in the Supplementary Estimates. The accompanying accounting policies and notes form
part of these financial statements.

Statement of Trust Monies

For the year ended 30 June 2012

Account	As at 30/06/11 $000	Contribution $000	Distribution $000	Revenue $000	As at 30/06/12 $000
NZ/France Friendship Trust Fund	230	31	(240)	1	22
Niue Admin Building Trust Fund	276	-	-	4	280
Cook Islands Trust Fund	20	2,200	(2,200)	3	23
Fred Hollows Foundation Trust	574	-	(583)	10	1
Kiribati Sustainable Towns Programme Trust Account	4	-	-	1	5
Niue Primary School Infrastructure Project Trust	-	2,738	-	-	2,738
Tuvalu Ship to Shore Transport Project Trust	-	-	-	-	-
Afghanistan New Zealand Aid Programme Trust	-	-	-	-	-
Total	1,104	4,969	(3,023)	19	3,069

 

Purpose of Trust Accounts

New Zealand/France Friendship Fund

The New Zealand/France Friendship Fund was established to manage the distribution of income from funds held in France as part of the Rainbow Warrior dispute. Funds are used for projects promoting relations between France and New Zealand.

Niue Admin Building Trust Fund

The Niue Admin Building Trust was established to receive funds held on behalf of the French Government, committed to the construction of a new government administration building in Niue to replace the temporary structures used since most of the government buildings on the island were damaged/destroyed in a cyclone several years ago.

Cook Islands Trust Fund

The Cook Islands Trust account was opened to hold funds provided by AusAID. The Trust was established following the decision by AusAID and New Zealand Aid Programme to harmonise
the aid programmes for the Cook Islands under the New Zealand Aid Programme’s management.

Fred Hollows Trust Fund

The Fred Hollows Trust account was opened to hold funds received from AusAID and to be managed as part of the New Zealand Aid Programme for a jointly funded programme to address vision impairment in the Pacific.

Kiribati Sustainable Towns Programme Trust

The Kiribati Sustainable Towns Programme Trust account was opened to hold and manage funds received from the Cities Alliance Secretariat – the World Bank; and to be managed as part of the
New Zealand Aid Programme.

Niue Primary School Infrastructure Project Trust

The Niue Primary School Infrastructure Project Trust account was set up in May 2012 to hold and manage funds on behalf of AusAID to undertake oversight of the construction of the Niue Primary School through the Niue Primary School Infrastructure project.

Tuvalu Ship to Shore Transport Project Trust

The Tuvalu Ship to Shore Transport Project Trust account was set up in May 2012 to hold and manage funds on behalf of AusAID to undertake oversight and management of the Tuvalu Ship to Shore Transport project. No transactions had flowed through this new trust account as at 30 June 2012.

Afghanistan New Zealand Aid Programme Trust

The Afghanistan New Zealand Aid Programme Trust account was set up in May 2012 to hold and manage donor funds relating to the New Zealand Aid Programme in Afghanistan for the purpose specified within each donor co-operation agreement for (a) Agricultural Support Programme and
(b) Renewable Energy Programme. No transactions had flowed through this new trust account
as at 30 June 2012.

The accompanying accounting policies and notes form part of these financial statements.

 

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