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Column definitions

The source of the financial information contained in each column of the tables that follow is:

  • 2016 Actual – as published in the Ministry’s Annual Report for the year ended 30 June 2016.
  • 2017 Actual – the audited actual figures for the current fiscal year
  • 2017 Budget – as published in the Ministry’s Budget Estimates Fiscal Update (BEFU) for the 2017 year and the Annual Report for the year ended 30 June 2016. This information is unaudited.
  • 2017 Forecast – as published in the Ministry’s Supplementary Estimates for the 2017 year. This information is unaudited.
  • 2018 Forecast – as published in the Ministry’s BEFU for the 2017 year. This information is unaudited.

STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSES

FOR THE YEAR ENDED 30 JUNE 2017

The Statement of Comprehensive Revenue and Expenses details the revenue and expenses relating to all outputs produced by the Ministry during the financial year.

2016
Actual
$000

  Note

2017
Actual
$000

2017
Budget
$000

2017
Forecast
$000

2018
Forecast
$000

  Revenue          
 32,223  Revenue Crown  2  34,174  32,765  34,174  36,511
 660  Other revenue  459  345  410  350
 32,883  Total Revenue   34,633  33,110  34,584  36,861
   Expenses          
 16,682  Personnel expenses  18,294  16,920  17,530  18,715
 11,719  Other operating expenses  11,739  12,358  12,793  13,920
 3,658  Contractual payments to Crown entities  4,145  3,916  4,223  3,821
 225  Capital charge  207  220  183  169
 539  Depreciation – property, plant and equipment 10  170  156  206  214
 60  Amortisation – intangible assets 10   26  (85)  24  22
 (375)  Release of provisions 14   (45)  -  -  -
 32,508  Total expenses    34,536  33,485  34,959  36,861
 375  Net surplus (deficit) 15   97  (375)  (375)  -
   Other comprehensive revenue and expense          
 505  Gain on revaluation    -  -  -
 (505)  Loss on disposal    -  -  -
 375  Total comprehensive revenue and expense    97  (375)  (375)  -

STATEMENT OF MOVEMENTS IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2017

2016
Actual
$000

  Note 2017
Actual
$000
2017
Budget
$000
2017
Forecast
$000

2018
Forecast
$000

2,810 Balance at 1 July   3,185 3,185 3,185 2,810
 375  Total comprehensive revenue and expense    97  (375)  (375)  -
 -  Release of retained surplus    (375)      
   Gain on revaluation    -  -  -  -
   Loss on disposal    -  -  -  -
   Owner transactions          
 -  Provision to repay surplus    (97)  -  -  -
 3,185  Balance at 30 June  8  2,810  2,810  2,810  2,810

The accompanying notes form part of these financial statements.

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STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

The Statement of Financial Position reports the total assets and liabilities of the Ministry as at 30 June 2017. Taxpayers’ funds are represented by the difference between the assets and liabilities.

2016
Actual
$000

  Note

2017
Actual
$000

2017
Budget
$000

2017
Forecast
$000

2018
Forecast
$000

  Equity          
2,322 Taxpayers’ funds   1,947 1,442 1,947 1,947
863 Revaluation reserve – aerodrome   863 1,368 863 863
3,185 Total equity 8 2,810 2,810 2,810 2,810
  Represented by:          
  Current assets          
2,951 Cash and cash equivalents   3,866 1,780 1,833 1,614
3,962

Debtors, prepayments and other receivables
under exchange transactions

9 3,998 3,453 3,928 3,928
6,913 Total current assets   7,864 5,233 5,761 5,542
  Non-current assets          
1,427 Property, plant and equipment 10 1,432 2,383 1,879 2,025
35 Intangible assets 10 26 459 106 179
 1,462  Total non-current assets    1,458  2,842  1,985  2,204
 8,375  Total assets    9,322  8,075  7,746  7,746
   Current liabilities          
 2,294  Creditors and other payables under exchange transactions  11  2,672  2,058  2,578  2,578
 1,194  Employee entitlements  12  1,252  1,386  1,304  1,304
 500  Provisions  13  1,500  744  -  -
 -  Provision to repay surplus    -  -  -  -
 3,988  Total current liabilities    5,424  4,188  3,882  3,882
   Non-current liabilities          
 1,202  Employee entitlements  12  1,088  1,077  1,054  1,054
 -  Provisions    -  -  -  -
 1,202  Total non-current liabilities    1,088  1,077  1,054  1,054
 5,190  Total liabilities    6,512  5,265  4,936  4,936
 3,185  Net assets    2,810  2,810  2,810  2,810

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STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2017

The Statement of Cash Flows summarises the cash movements in and out of the Ministry during the financial year.

2016
Actual
$000

  Note

2017
Actual
$000

2017
Budget
$000

2017
Forecast
$000

2018
Forecast
$000

  Cash flows from operating activities          
31,749 Crown revenue   33,671 32,765 34,174 36,511
8 Departments   - - - -
339 Crown entities   111 115 120 120
260 Other revenue   348 230 323 230
(16,875) Personnel costs   (16,668) (16,920) (17,530) (18,715)
(11,441) Operating expenses   (11,927) (12,358) (12,793) (13,920)
(3,658) Contractual payments to Crown entities   (4,145) (3,916) (4,223) (3,821)
189 Net GST paid   174 - (251) -
(225) Capital charge   (207) (220) (183) (169)
346 Net cash flows from operating activities 15 1,357 (304) (363) 236
  Cash flows from investing activities          
(130) Purchase of property, plant and equipment   (425) (660) (660) (360)
(9) Purchase of intangible assets   (17) (95) (95) (95)
(139) Net cash flows from investing activities   (442) (755) (755) (455)
  Cash flows from financing activities          
(20) Repayment of surplus   - - - -
 (20)  Net cash flows from financing activities    -
 188  Net increase/(decrease) in cash held    915  (1,059)  (1,118)  (219)
 2,763  Cash at 1 July    2,951  2,839  2,951  1,833
 2,951  Total cash at 30 June    3,866  1,780  1,833  1,614

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STATEMENT OF COMMITMENTS

AS AT 30 JUNE 2017

Non-cancellable operating lease commitments
The Ministry leases property in the normal course of business.
In Wellington, the Ministry rents space from Statistics NZ in Westpac House. There is no formal agreement and Statistics NZ is the lessee therefore the Ministry has no legal commitment.
In Auckland, the Ministry participates in a shared office arrangement with other government departments. The Ministry of Business, Innovation and Employment is the lessee. The lease expires on 30 April 2021. The commitment is disclosed below.

2016
Actual
$000

 

2017
Actual
$000

  Non-cancellable operating lease commitments  
381 Not later than 1 year 95
- Later than 1 year and not later than 5 years -
- Later than 5 years -
381 Total non-cancellable operating lease commitments 95

There are no restrictions placed on the Ministry by its leasing arrangements. The amount disclosed is based on the projected rental rate. Total operating lease cost is expensed on a straight-line basis over the life of the lease.
The decrease in commitments is because the Ministry is no longer reflecting a lease commitment in Wellington.
Capital commitments
The Ministry has no capital commitments as at 30 June 2017 (2016: nil).

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STATEMENT OF CONTINGENT LIABILITIES AND CONTINGENT ASSETS

AS AT 30 JUNE 2017

The Ministry has a contingent asset relating to earthquake-related response and recovery costs incurred by the Ministry as at 30 June 2017. The Ministry is yet to discuss the costs with insurers therefore the amount that may be recovered is not known.

 

2016
Actual
$000

   

2017
Actual
$000

 -  Earthquake related response and recovery costs  350

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Notes to the departmental financial statements and non-departmental schedules

for the year ended 30 June 2017

NOTE 1: STATEMENT OF ACCOUNTING POLICIES

Reporting entity

The Ministry of Transport is a New Zealand government department, as defined by section 2 of the Public
Finance Act 1989.

The Ministry reports on the departmental financial statements and separately on the non-departmental
schedules, which present financial information on public funds managed by the Ministry on behalf of the Crown.

The primary objective of the Ministry is to provide policy services to the Government rather than making a financial return. Accordingly, the Ministry has designated itself as a public benefit entity for the purposes of New Zealand Public Benefit Entity International Public Sector Accounting Standards (NZ PBE IPSAS).

The departmental financial statements and the financial information reported in the non-departmental schedulesare consolidated into the financial statements of the Government and therefore readers of these schedules should also refer to the Financial Statements of the Government for the year ended 30 June 2017.

The financial statements of the Ministry are for the year ended 30 June 2017. These financial statements were authorised for issue by the Chief Executive on 29 September 2017.

Basis of preparation

The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently throughout the period.

Statement of compliance

The financial statements and unaudited forecast financial statements of the Ministry have been prepared in accordance with the requirements of the Public Finance Act 1989, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practices (NZ GAAP), Treasury Instructions and Treasury Circulars. Measurement and recognition rules applied in the preparation of the non-departmental schedules are consistent with NZ GAAP and Crown accounting policies and are detailed in the Financial Statements of the Government. These financial statements have been prepared in accordance with Tier 1 NZ PBE accounting standards.

Measurement base

The financial statements have been prepared on an historical cost basis modified by the revaluation of specified assets.

Functional and Presentation currency

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000).

Standards issued that are not yet effective and have not been early adopted

Standards and amendments, issued but not yet effective that have not been early adopted, and which are relevant to the Ministry are:

Financial instruments

In January 2017, the External Reporting Board issued PBE IFRS 9 Financial Instruments. This replaces PBE IPSAS 29 Financial Instruments: Recognition and Measurement. PBE IFRS 9 is effective for annual periods beginning on or after 1 January 2021, with earlier application permitted. The main changes under the standard are:

  • New financial asset classification requirements for determining whether an asset is measured at fair value or amortised cost.

  • A new impairment model for financial assets based on expected losses, which may result in the earlier recognition of impairment losses.

The Crown and the Ministry will adopt PBE IFRS 9 in 2018/19. The Ministry has not yet assessed the effects of the new standard.

Impairment of Revalued Assets

In April 2017, the External Reporting Board issued PBE IPSAS 17 Impairment of Revalued Assets, which now clearly scopes revalued property, plant, and equipment into the impairment accounting standards. Previously, only property, plant, and equipment measured at cost were scoped into the impairment accounting standards.

Under the amendment, a revalued asset can be impaired without having to revalue the entire class of asset to which the asset belongs. The timing of the Ministry adopting this amendment will be guided by the Treasury’s decision on when the Financial Statements of Government will adopt the amendment.

Changes in accounting policies

There have been no changes in accounting policies during the financial year.

Significant accounting policies

Revenue – Crown non-exchange

The Ministry’s funding entitlement is established by Parliament when it passes the Appropriation Acts for the financial year. Revenue from the Crown is classified as non-exchange revenue and has been recognised to the level reported in the Supplementary Estimates. There are no conditions attached to the funding from the Crown beyond the requirement that the Ministry may only incur expenses within the scope and limits of is appropriations. Other revenue is recognised when earned and is reported in the financial period to which it relates. Revenue is measured at the fair value of the consideration received or receivable.

Revenue other – exchange

Other revenue is recognised when earned and is reported in the financial period to which it relates. Revenue is
measured at the fair value of the consideration received or receivable.

Equity

Equity is the Crown’s investment in the Ministry and is measured as the difference between total assets and total liabilities.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand and deposits on call with banks.

Income tax

The Ministry is a public authority and so is exempt from the payment of income tax. Accordingly, no charge for income tax has been provided.

Goods and Services Tax (GST)

All items in the financial statements, including appropriation statements, are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the Inland Revenue Department is included as part of receivables or payables in the statement of financial position.

The net GST paid to, or received from, the Inland Revenue Department, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

Statement of cost allocation policies

The Ministry has determined the cost of outputs using the following cost allocation system:
Direct costs are expenses incurred from activities specifically attributable to producing an output. These
costs are charged directly to the relevant output classes.
Indirect costs are those costs that cannot be identified with a specific output. Indirect costs are allocated to each output through a two-stage process. The costs are assigned to cost centres within the Ministry, and then the costs are allocated to outputs on the basis of the direct staff time attributable to the outputs of that cost centre.
There have been no changes in general cost accounting policies since the date of the last audited financial statements.

Forecast figures

Basis of preparation

The forecast figures, representing the Forecast Financial Statements, are those published in the BEFU for the year ended 30 June 2018, and are prepared in accordance with PBE FRS 42.

The figures have been prepared in accordance with:

  • the accounting policies expected to be used in the future for reporting historical general purpose financial statements
  • NZ PBE IPSAS,
  • the BEFU for the year ended 30 June 2017, incorporating assumptions as to future events that the Ministry reasonably expects to occur, and associated with the actions it reasonably expects to take.
  • existing government policies and ministerial expectations at the date that the information was prepared.

The main assumptions were as follows:

  • The Ministry’s activities and output expectations will remain substantially the same as the previous year focusing on government priorities.
  • Personnel costs were based on current remuneration costs, adjusted for a planned increase in the establishment of 12 full-time equivalent employees and other anticipated remuneration changes.
  • Operating costs were based on historical experience and other factors that are believed to be reasonable in the circumstances and are the Ministry’s best estimate of future costs that will be incurred.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual financial results achieved for the period covered are likely to vary from the information presented, and the variations may be material.

Authorisation statement

The Forecast Financial Statements were authorised for issue by the Chief Executive of the Ministry on 24 April 2017. The Chief Executive is responsible for the Forecast Financial Statements presented, including the appropriateness of the underlying assumptions and all other required disclosure.

Critical accounting estimates and assumptions
There are no critical accounting estimates and assumptions made in preparing these financial statements.

NOTE 2: REVENUE CROWN

2016
Actual
$000

 

2017
Actual
$000

2017
Budget
$000

2017
Forecast
$000

2018
Forecast
$000

30,477 Policy advice and related outputs MCA 31,870 30,761 31,870 33,233
1,201 Search and rescue activity co-ordination PLA 1,201 1,201 1,201 2,575
545 Fuel excise duty refund administration 1,103 803 1,103 703
32,223 Total revenue Crown 34,174 32,765 34,174 36,511

NOTE 3: OTHER REVENUE

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

368 Crown entities and other departments 111 120
270 Milford Aerodrome landing fees 329 230
22 Other recoveries 19 -
660 Total other revenue 459 350

NOTE 4: PERSONNEL EXPENSES

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

16,023 Salary and wages 17,469 17,225
 571  Employer contributions to defined contribution schemes  535  530
 193  Other personnel costs  256  780
   Changes to provisions    
 (127)  Annual leave  168  115
 (16)  Long service leave  (9)  10
 52  Retirement leave  (122)  55
 (14)  Sick leave  (3)  -
 16,682  Total personnel expenses  18,294  18,715

Employer contributions to defined contribution plans include contributions to State Sector Retirement Savings Scheme, KiwiSaver, and the Government Superannuation Fund.

NOTE 5: OTHER OPERATING EXPENSES

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

5,605 Consultant, research and legal expenses 5,861 8,936
2,351 Other operating expenses 2,620 1,568
1,980 Information technology expenses 1,864 2,000
1,553 Operating lease payments 781 1,180
129 Advertising and publicity 278 150
83 Audit NZ – the financial statement audit 85 86
- Impairment of assets 250 -
18 Loss on disposal of assets - -
11,719 Total other operating expenses 11,739 13,920

Since the November 2016 earthquake, a number of Ministry assets have been trapped at 1 The Boulevard. These assets have been impaired in 2016/17 as it appears they may not be recovered.

During 2015/16, software no longer used was written off before the end of its useful life, resulting in the loss shown above.

NOTE 6: CONTRACTUAL PAYMENTS TO CROWN ENTITIES

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

  NZ Transport Agency:    
899 For rules programme activity 903 823
660 For fuel excise duty refund activity 1,145 823
1,200 Civil Aviation Authority: for rules programme activity 1,194 1,448
899 Maritime New Zealand: for rules programme activity 903 727
3,658 Total contractual payments to Crown entities 4,145 3,821

NOTE 7: CAPITAL CHARGE

The Ministry pays a capital charge to the Crown based on its taxpayers’ funds as at 30 June and 31 December each year for the previous 6 months. The capital charge rate for the year ended 30 June 2017 was 7 percent for the 31 December payment and 6 percent for the 30 June payment (2015/16: 8 percent for both payments).

NOTE 8: EQUITY

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

  Taxpayers’ funds    
1,947 Balance at 1 July 2,322 1,947
375 Net surplus 97 -
- Provision to repay surplus (97) -
- Release of retained surplus (375) -
2,322 Balance at 30 June 1,947 1,947
  Property revaluation reserve    
863 Balance at 1 July 863 863
505 Revaluation - -
(505) Loss on transfer of assets - -
863 Balance at 30 June 863 863
3,185 Total equity 2,810 2,810

NOTE 9: DEBTORS, PREPAYMENTS AND OTHER RECEIVABLES

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

  Non-exchange    
3,880 Due from the Crown 3,912 3,880
  Exchange    
82 Other receivables 86 48
3,962 Total debtors, prepayments and other receivables 3,998 3,928

The carrying value of debtors, prepayments and other receivables approximates their fair value. Other receivables greater than 30 days in age are considered to be past due. Receivables of $2,695 were past due at 30 June 2017 (2015/16: $nil). The Ministry has assessed that no provision for impairment is required (2015/16: $nil).

NOTE 10: PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLES

   

Leasehold
improvements
$000

 

Plant and
equipment
$000

 

Kaikohe
land
$000

 

Milford
Sound/
Piopiotahi
Aerodrome
$000

 

Furniture
and
fittings
$000

 

Intangible
assets
$000

 

Total
$000

Cost or valuation               
 Balance at 1 July 2015  2,170  1,296  -  1,310  836  1,664  7,276
 Additions  -  23 107   - 139 
 Revaluations 505  505 
 Disposals (49)  (505)  (125)  (679) 
 Balance at 30 June 2016 2,170   1,270 1,417  836  1,548  7,241 
 Balance at 1 July 2016  2,170 1,270  1,417  836  1,548  7,241 
 Additions  -  421  -  4  -  17  442
 Disposals  (2,170) (979)  (836)  (37)  (4,022) 
 Balance at 30 June 2017  -  712  -  1,421  -  1,528  3,661
 Accumulated depreciation              
 Balance at 1 July 2015  1,967  1,022 780  1,560  5,336 
 Depreciation  183 276  30  50  60  599 
 Disposals  -  (49) (107)  (156) 
 Balance at 30 June 2016  2,150  1,249  -  37  830  1,513  5,779
 Balance at 1 July 2016  2,150  1,249  -  37  830  1,513  5,779
 Depreciation  20  112  - 32  26  196 
 Impairment  - 250  250 
 Disposals  (2,170)  (979)  -  -  (836)  (37)  (4,022)
Balance at 30 June 2017  -  632  -  69  -  1,502 2,203 
Carrying amounts              
At 1 July 2015 203  274 1,303  56  104  1,940 
At 30 June and 1 July 2016 20  21  1,380  35  1,462 
At 30 June 2017  - 80  1,352  26  1,458 
Unaudited forecast at 30 June 2018  - 700  1,325  179  2,204 

Additions

The cost of an item of property, plant, and equipment is recognised as an asset only when it is probable that future economic benefits or service potential associated with the item will flow to the Ministry and the cost of the item can be measured reliably.
Work in progress is recognised at cost less impairment and is not depreciated.
In most instances, an item of property, plant, and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.

Disposals

Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the surplus or deficit. When a revalued asset is sold, the amount included in the property revaluation reserve in respect of the disposed asset is transferred to taxpayers’ funds.

Depreciation

Depreciation is provided on a straight-line basis on all property, plant, and equipment, other than land.

Asset class Useful life Depreciation rate
Furniture and fittings 10 years or to August 2016 10% per annum
Leasehold improvements To August 2016 9.65 % per annum
Milford Sound/ Piopiotahi Aerodrome 3-100 years 1-33.3% per annum
Plant and equipment 2-10 years or to August 2016 10-50% per annum
Software 3-5 years 20-33.3% per annum

The Ministry relocated in August 2016. At that time, many of its assets were not suitable for the new property and therefore were disposed of.
Milford Sound / Piopiotahi Aerodrome (the aerodrome) is revalued on a five yearly cycle. The aerodrome was valued at 31 March 2015 by an independent valuer, M Gordon (BE Hons, MBA, CPEng, MIPENZ) of AECOM (NZ) Limited. The valuation was based on the aerodrome’s optimised depreciated replacement cost. Impairment of the valuation is reassessed annually.
The only intangible asset is purchased software. There are no restrictions over the title of the Ministry’s intangible assets, nor are any intangible assets pledged as security for liabilities.
There was no work in progress asset at 30 June 2017 (30 June 2016: $nil).

NOTE 11: CREDITORS AND OTHER PAYABLES

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

  Exchange    
1,791 Accrued expenses 1,739 1,800
253 Trade creditors 503 778
  Non-exchange    
250 GST payable 430 -
2,294 Total creditors and other payables 2,672 2,578

NOTE 12: EMPLOYEE ENTITLEMENTS

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

  Current liabilities    
38 Accrued salary 74 40
913 Annual leave 955 895
81 Long service leave 88 80
146 Retirement leave 122 273
16 Sick Leave 13 16
1,194 Total of current portion 1,252 1,304
  Non-current liabilities    
161 Long service leave 145 150
1,041 Retirement leave 943 904
1,202 Total of non-current portion 1,088 1,054
2,396 Total employee entitlements 2,340 2,358

The present value of the retirement and long service leave obligations depends on a number of factors. Two key factors are the discount rate and the salary-inflation factor. Any changes in these assumptions will change the carrying amount of the liability.

NOTE 13: PROVISIONS

 

Lease
make-good
$000

Restructure
$000

Total
$000

Balance at 1 July 2016 500 - 500
Transfer to the Ministry of Social Development (455) - (455)
New provision - 1,500 1,500
Release of provision (45) - (45)
Balance at 30 June 2017 - 1,500 1,500
Current liabilities - 1,500 1,500
Non-current liabilities - - -

At the expiry of the lease term for its leased premises, the Ministry was required to make good any damage caused to the premises and to remove any fixtures or fittings installed by the Ministry.
The results of an organisational review were announced in June 2017. As a result, a restructuring provision for additional personnel costs has been included in the year’s results.

NOTE 14: RELEASE OF PROVISIONS

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

244 Release of make-good provision – see note 13 45 -
71 The Ministry accrued for a rent increase at 30 June 2015 that did not eventuate - -
60 The Ministry provided for earthquake costs at 30 June 2015 that did not eventuate - -
375 Total 45 -

NOTE 15: RECONCILIATION OF THE NET SURPLUS IN THE STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE WITH NET CASH FLOWS FROM OPERATING ACTIVITIES IN THE STATEMENT OF CASH FLOWS

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

375 Net surplus 97 -
  Add non-cash items    
539 Depreciation of property, plant and equipment 170 214
60 Amortisation of intangible assets 26 22
- Impairment of assets 250 -
18 Loss on disposal of assets - -
617 Total of non-cash items 446 236
  Add/(deduct) movements in working capital items    
(508) (Increase)/decrease in debtors and other receivables (507) -
54 Increase/(decrease) in payables and provisions 1,377 -
(191) Increase/(decrease) in employee entitlements (56) -
(645) Net movements in working capital items 814 -
347 Net cash flows from operating activities 1,357 236

NOTE 16: CATEGORIES OF FINANCIAL INSTRUMENTS

2016
Actual
$000

 

2017
Actual
$000

2018
Forecast
$000

  Loans and receivables    
2,951 Cash and cash equivalents 3,866 1,614
3,962 Debtors, prepayments and other receivables (note 9) 3,998 3,928
  Financial liabilities measured at amortised cost    
2,294 Creditors and other payables (note 11) 2,672 2,578

NOTE 17: RELATED PARTY INFORMATION

The Ministry has not made related party disclosures for transactions with related parties within a normal supplier or client/ recipient relationship, on terms and conditions no more or less favourable than those it is reasonable to expect the Ministry would have adopted, in dealing with the party at arm’s length in the same circumstances. In addition, the Ministry has not disclosed as related transactions any transactions with other Government agencies (e.g., departments and Crown entities), when the transactions are consistent with the normal operating arrangements between Government agencies and undertaken on normal terms and conditions.

The Ministry received revenue from other entities controlled by the Crown to reimburse it for costs – detailed in note 3.
The Ministry also purchases transport outputs from other transport entities controlled by the Crown – detailed in note 6.

Transactions with key management personnel
The Ministry did not enter into any transactions with key management personnel or their close families in 2016/17 or 2015/16.

Key management personnel compensation

2016
Actual
$000

 

2017
Actual
$000

1,795 Salaries and other short-term employee benefits 1,656
- Termination benefits -
1,795 Total key management personnel compensation 1,656

At 30 June 2017, key management personnel comprise 6 FTE (2015/16: 6), including the Chief Executive and the members of the senior management team.

 

NOTE 18: MAJOR CHANGES TO THE DEPARTMENTAL OUTPUT BUDGETS FOR 2016/17

Changes were made to the Ministry’s departmental output budgets by way of the Supplementary Estimates for 2016/17. Explanations for the changes were outlined in that document (page 689 onwards) and the net changes are shown below.

Appropriations for departmental output expenses

2017
Budget
$000

2017
Forecast
$000

Cumulative
Vote
$000

Policy advice and related outputs MCA 31,136 1,129 32,265
Fuel excise duty refund administration 918 305 1,223
Milford Sound / Piopiotahi Aerodrome operation and administration 230 40 270
Search and rescue activity coordination PLA 1,201 - 1,201
Total departmental appropriations 33,485 1,474 34,959

The adjustments to the appropriations were:

  • Net re-prioritisation of $0.646 million to the Policy advice and related outputs MCA, $0.696 million from  on departmental Vote Transport appropriations and $0.050 million to Vote Internal Affairs
  • a carry forward of $0.500 million unspent appropriation from 2015/16 in the Policy advice and related outputs MCA
  • other changes – a reduction of $0.017 million
  • additional revenue of $0.305 million for Fuel excise duty refund administration as Ministers approved an increase in the appropriation
  • additional revenue of $0.040 million for Milford Sound / Piopiotahi Aerodrome operation and administration from landing fees.

NOTE 19: EXPLANATION OF MAJOR VARIANCES BETWEEN ACTUAL AND FORECAST 2017 FIGURES

The significant variances between the actual results and the figures included in the Supplementary Estimates of Appropriations for the year ended 30 June 2017 are:

Statement of comprehensive revenue and expense

Expenses
Total expenditure was $0.423 million below the Supplementary Estimates, because the Ministry did not
spend the full appropriation.

Statement of financial position

Assets
Cash and cash equivalents
The actual was $2.033 million more than the Supplementary Estimates. This was mainly because
less was spent on property, plant and equipment and Intangible assets than forecast, and because some
expenditure was raised as a provision, not spent as cash (as forecast).

Property, plant and equipment and Intangible assets
The actual was $0.527 million less than the Supplementary Estimates, because projects were
delayed as a result of disruption caused by the November 2016 earthquake.

Liabilities
Provisions
The actual was $1.500 million more than the Supplementary Estimates, because a provision wasraised that was not forecast.

NOTE 20: EXPLANATIONS OF MAJOR VARIANCES BETWEEN ACTUAL 2016/17 AND FORECAST 2017/18 FIGURES

The significant variances between the actual results and the forecast 2017/18 figures are as below.

Statement of comprehensive revenue and expense

Revenue Crown

The 2017/18 forecast is $2.337 million more than the 2016/17 actual. This is mainly a combination of:

  • $2.500 million increase to the Policy advice and related outputs MCA as Cabinet have approved an increase in the appropriation.
  • $1.374 million increase to the Search and rescue activity coordination PLA as Ministers have approved an increase in the appropriation.
  • $0.696 million reduction, which was an increase to the Policy advice and related outputs MCA for
  • 2016/17 only.

Expenses
The 2017/18 forecast is $2.325 million more than the 2016/17 actual. This is additional appropriation that the Ministry will spend.

Statement of financial position

Assets

Cash and cash equivalents
The actual was $2.252 million more than the 2017/18 forecast. This was mainly because less was spent on property, plant and equipment and Intangible assets than forecast, and because a provision was raised that was not forecast (see following explanations).

Property, plant and equipment and Intangible assets
The actual was $0.746 million less than the 2017/18 forecast, because 2016/17 projects were delayed as
a result of disruption caused by the November 2016 earthquake.

Liabilities
Provisions
The actual was $1.500 million more than the Supplementary Estimates, because a provision was
raised that was not forecast.

NOTE 21: EVENTS AFTER BALANCE SHEET DATE

No event has occurred since the end of the financial period (not otherwise dealt with in the financial
statements) that has affected, or may significantly affect, the Ministry’s operations or state of affairs for the year ended 30 June 2017.

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