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Introduction/overview

The following non-departmental statements and schedules record the revenue and receipts, expenses, assets and liabilities that the Ministry manages on behalf of the Crown.

The Ministry administered:

  • $1.125 billion of non-departmental revenue and receipts
  • $2.962 billion of non-departmental expenditure
  • $0.094 billion of non-departmental assets
  • $0.363 billion of non-departmental liabilities

on behalf of the Crown for the year ended 30 June 2010.

Further details of the management of these Crown assets and liabilities are provided later in this report.

Schedule of Non-departmental Revenue and Receipts for the year ended 30 June 2010

This schedule summarises non-departmental revenues and receipts that the Ministry collects on behalf of the Crown.

 

Actual 2008/09
$000
 Notes Actual 2009/10 
$000
Main Estimates 2009/10
$000 
Supplementary Estimates 2009/10
$000 
1,003,574  Indirect taxation  1,048,680  972,539  1,027,613 
124  Other 'sovereign' power 88  10  100 
70,615  Other operational revenue 75,827  63,702  72,736 
7,114  Share of net asset increase in joint venture airports 10  542  -
1,081,427  Total non-departmental revenue and receipts   1,125,137  1,036,251  1,100,449 

Schedule of Non-departmental Expenses for the year ended 30 June 2010

This schedule summarises non-departmental expenses that the Ministry administers on behalf of the Crown. Further details are provided in the Statement of Non-departmental Expenditure and Capital Expenditure Appropriations.

Actual 2008/09
$000
 Notes Actual 2009/10 
$000 
Main Estimates 2009/10
$000  
Supplementary Estimates 2009/10
$000  
1,727,599  Non-departmental output classes  1,972,573  1,514,508  1,980,393 
905,390  Purchase or development of capital assets 693,200  1,009,064  629,393 
17,813  Other expenses to be incurred by the Crown 348,591  463,009  403,802 
Write back of National Land Transport Fund balance (55,800) 
2,398  Bad debts expense   7,666  5,000  10,000 
7,125  Movement in doubtful debts provision   (4,141) 
2,660,325  Total non-departmental expenses   2,962,089  2,991,581  3,024,000 

Explanations of major variances against budget are detailed in note 15.

Schedule of Non-departmental Assets as at 30 June 2010

This schedule summarises the assets that the Ministry administers on behalf of the Crown.

 

Actual 2008/09
$000
 Notes Actual 2009/10
$000 
Main Estimates 2009/10
$000 
Supplementary Estimates 2009/10
$000 
  Current assets         
5,642  Cash and bank balances   23,853  22,720  2,608 
70,129  Receivables and advances 45,345  40,970  53,163 
  Non-current assets        
31,308  Investment in joint venture airports 10  24,450  26,581  26,245 
107,079  Total non-departmental assets   93,648  90,271  82,016 

In addition, the Ministry monitors a number of Crown entities. These are:

  • Civil Aviation Authority (which includes the Aviation Security Service)
  • Maritime New Zealand
  • NZ Transport Agency (formerly Land Transport New Zealand and Transit New Zealand)
  • Transport Accident Investigation Commission.

The investment in these entities is recorded within the Crown financial statements on a line-by-line basis. No disclosure is made in this schedule.

Schedule of Non-departmental Liabilities as at 30 June 2010

This schedule summarises the liabilities that the Ministry administers on behalf of the Crown.

Actual 2008/09
$000
 Notes Actual 2009/10
$000 
Main Estimates 2009/10
$000 
Supplementary Estimates 2009/10
$000 
  Current liabilities         
518,154  Payables 12  362,742  453,365  518,150 
518,154  Total non-departmental liabilities   362,742  453,365  518,150 

Explanations of major variances against budget are detailed in note 15.

Statement of Non-departmental Expenditure and Capital Expenditure Appropriations for the year ended 30 June 2010

This statement details expenditure and capital payments incurred against appropriations. The Ministry administers these appropriations on behalf of the Crown.

Download the table here (PDF, 68kb, 2 pages)

*Two Crown entities Land Transport New Zealand and Transit New Zealand were merged into one new entity, the NZ Transport Agency on 1 August 2008. The net assets of the two agencies at that date which totalled $20,338,535,000 were repaid to the Crown and then reinvested in the NZ Transport Agency.

** This appropriation is one of several permanent legislative authority appropriations that relate to the National Land Transport Fund. The size of the appropriation is limited by the revenue that is hypothecated to the Fund and the appropriation size in the Estimates is indicative only. The appropriation drew down $64 million more than in the Supplementary Estimates but this is not an issue as there is sufficient revenue to cover this. Thus the appropration is not unappropriated.

Details of Multi-Year Appropriations

 Auckland rail development 
$000 
Joint venture airports - Crown contribution
$000 
Rail network and rolling stock upgrade
$000 
Wellington rail development
$000 
Commences  1 July 2009  1 July 2008  1 July 2009  1 July 2009 
Expires 30 June 2013  30 June 2011  30 June 2011  30 June 2011 
Appropriation at 1 July 2009 663,875  1,773  104,851  91,478 
Adjustments for 2009/10 19,722  6,980  2,264 
Total funding 683,597  1,773  111,831  93,742 
Expenditure in prior years 820 
Expenditure in current year 178,580  422  30,923  76,572 
Total expenditure to 30 June 2010 178,580  1,242  30,923  76,572 
Balance of appropriation remaining at 30 June 2010 505,017  531  80,908  17,170 

The adjustments in the current year are the rail funding in Vote Finance that was unspent in 2008/09 and transferred to Vote Transport.

Statement of Non-departmental Commitments as at 30 June 2010

This statement records those expenditures to which the Crown is contractually committed and which will become liabilities if and when the terms of the contracts are met.

Actual 2008/09
$000
 Actual 2009/10
$000 
  Operating commitments   
74,295  Other non-cancellable contracts for the supply of goods and services 74,296 
74,295  Total operating commitments 74,296 
  Term classification of commitments  
18,573  Not later than one year 18,574 
18,574  More than one year but less than two years 18,574 
37,148  Between two and five years 37,148 
74,295  Total operating commitments 74,296 

The liability is a contract with a State-owned enterprise for the supply of outputs. The contract is for an indefinite term and can be terminated by mutual agreement between the parties. The fee is renegotiable every three years. The commitment is disclosed based on the term of four years currently within the approved Estimates.

Statement of Non-departmental Contingent Liabilities as at 30 June 2010

This statement discloses situations which exist at 30 June 2010, the ultimate outcome of which is uncertain and will be confirmed only on the occurrence of one or more future events after the date of approval of the financial statements.

 

Actual 2008/09
$000 
 Actual 2009/10
$000 
10,000  Transport Accident Investigation Commission emergency guarantee  10,000 
10,000  Total contingent liabilities 10,000 

The Minister of Finance has issued a $10 million guarantee to the Transport Accident Investigation Commission. The guarantee is to be used in the event of a major transport accident (air or rail) where the Commission would have to hire specialist recovery equipment. This is expected to be a near permanent guarantee.

In addition to the contingent liability disclosed above, an indemnity has been provided by the Crown to the Meteorological Service of New Zealand for potential third party claims in excess of arranged public liability cover. The value of the liability will depend on the circumstances of the claim (unchanged since 21 August 2000).

Statement of Non-departmental Unappropriated Expenditure for the year ended 30 June 2010

One instance of unappropriated expenditure was reported during the year.

Enhanced public transport concessions for SuperGold cardholders

The appropriation has been in place for two years and the growing demand meant that expenditure exceeded the funding available for 2009/10. Officials are currently reviewing the scheme and exploring options for the scheme’s sustainability going forward. The quantum of the unappropriated expenditure is $0.327 million.

2008/09 unappropriated expenditure

There were three instances of unappropriated expenditure in 2008/09.

Motor vehicle registration/licences and road user charges bad debt provision

The appropriation was established in 2007/08 but, in error, was created only for that year when it should have been established for out years as well. Bad debts of $0.257 million were recognised in the first quarter before the error was corrected and the appropriation re-established.

International memberships

Since 2005, the Ministry had been paying an annual subscription to the Pacific Aviation Safety Office (PASO). However PASO was not within the scope of the appropriation and so the payments were unappropriated. PASO was not paid from the appropriation in 2008/09 as the issue had been identified. The unappropriated expenditure relating to prior years amounted to $0.049 million.

NZ Transport Agency

The scope of this appropriation allowed for the transfer of the net assets of Land Transport New Zealand and Transit New Zealand to the new Crown entity, the NZ Transport Agency.

A related matter was the transfer of the Motor Vehicle Register from the Ministry of Transport to the new entity at a cost of $6.99 million. Instead of creating a new appropriation for this transfer, officials received permission to include it in this existing appropriation. The payment was outside the scope and so unappropriated expenditure of $6.99 million was incurred.

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