Annual Report 2010-11: Financial performance

Last updated on 10/01/2012 3:11 p.m. 

Statement of objectives - financial performance

for the year ended 30 June 2011

Actual 2009/10    Unit %  Actual 2010/11  Main Estimates 2010/11  Supplementary Estimates 2010/11 
  Operating results         
810  Other revenue $000 834 550   922
49,712  Output expenses $000  52,472 50,755   53,937
223  Operating surplus before capital charge  $000  234 223   234
-  Net surplus -   - -   
  Working capital         
111 Net current assets   $000  541  182  239
102  Current ratio   %  111  106  106
  Resource utilisation         
4,015 Property plant and equipment and intangibles at year end   $000 3,853  3,798  3,886
 13 Additions as a percentage of property, plant and equipment and intangible assets at year end %  17  20  19
 42 Property, plant and equipment and intangibles as a percentage of total assets at year end   %  42  53  48
 3,116 Taxpayers' funds at year end   $000  3,116  2,958  3,116
  Net cash flows         
 2,441 Surplus from operating activities   $000  1,636  880  854
 (605) Surplus/(deficit) from investing activities   $000  (674)  (750)  (725)
 (26) (Deficit) from financing activities   $000  -  -  -
 1,810 Net increase in cash held   $000  962  130  129

Statement of comprehensive income

for the year ended 30 June 2011

Actual 2009/10
$000 		   Notes  Actual 2010/11
$000 		 Main Estimates 2010/11 $000  Supplementary Estimates 2010/11
$000 
  Income         
 30,129 Revenue Crown   2  32,965  31,432  33,268
 18,773 Revenue from fees   3  18,773  18,773  19,747
 810 Other revenue   4  834  550  922
 49,712 Total operating income     52,472  50,755  53,937
  Expenditure         
 20,837 Contractual payments to Crown entities   5  21,168  20,864  21,838
17,408  Personnel expenses   6  18,211  17,520  17,580
10,422 Other operating expenses   7  12,002  11,268  13,431
223 Capital charge   8  234  223  234
505 Depreciation of property, plant and equipment   11  504  592  513
 297 Amortisation of intangible assets   12  332  288  341
20 Finance cost   13  21  -  -
 49,712 Total expenditure     52,472  50,755  53,937
 - Net surplus/(deficit)     -  -  -
 158 Gain on revaluation of Milford aerodrome   11  -  -  -
 158 Total comprehensive income    -   -  -

Explanations of significant variances against budget are detailed in note 23.

Statement of movements in taxpayers' funds

for the year ended 30 June 2011

Actual 2009/10
$000 		   Notes  Actual 2010/11 $000  Main Estimates 2010/11 $000  Supplementary Estimates 2010/11
$000 
2,984  Balance at 1 July    3,116  2,958  3,116
158  Total comprehensive income     -  -  -
(26)  Capital withdrawal  9   -  -  -
 3,116 Balance at 30 June  9   3,116  2,958  3,116

Statement of financial position

as at 30 June 2011

Actual 2009/10
$000 		   Notes  Actual 2010/11 $000  Main Estimates 2010/11 
$000 		 Supplementary Estimates 2010/11
$000 
Taxpayers' funds         
 2,355 General funds     2,355  2,355  2,355
 761 Revaluation reserve - aerodrome     761  603  761
 3,116 Total taxpayers' funds   9  3,116  2,958  3,116
  Represented by:         
  Current assets         
 2,155 Cash and cash equivalents     3,117  3,141  2,284
 3,454 Debtors, prepayments and other receivables  10  2,289  263  1,953
 5,609 Total current assets     5,406  3,404  4,237
  Non-current assets         
 3,387 Property, plant and equipment   11  3,236  3,276  3,203
 540 Intangible assets 12
  555  522  683
 88 Work in progress     62  -  -
 4,015 Total non-current assets     3,853  3,798  3,886
 9,624 Total assets     9,259  7,202  8,123
  Current liabilities         
 4,342 Creditors and other payables   14  3,684  2,269  2,842
 1,156 Employee entitlements   15  1,181  953  1,156
 5,498 Total current liabilities     4,865  3,222  3,998
  Non-current liabilities         
 438 Employee entitlements   15  685  470  437
 572 Provision for lease make-good   16  593  552  572
 1,010 Total non-current liabilities     1,278  1,022  1,009
 6,508 Total liabilities     6,143  4,244  5,007
 3,116 Net assets     3,116  2,958  3,116

Statement of cash flows

for the year ended 30 June 2011

Actual 2009/10 $000    Notes  Actual 2010/11 $000  Main Estimates 2010/11 $000  Supplementary Estimates 2010/11
$000 
  Cash flows from operating activities         
 30,969 Crown     33,133  31,861  36,171
 17,294 Fees     19,610  18,344  18,344
 575 Departments     392  350  400
 88 Crown entities     194  -  192
 146 Other     338  200  330
 (17,390) Personnel costs     (17,986)  (17,412)  (17,522)
 (8,331) Operating expenses     (12,995)  (11,268)  (14,931)
 (21,159) Contractual payments to Crown entities     (20,740)  (20,972)  (21,896)
 472 Net GST paid     (76)  -  -
 (223) Capital charge     (234)  (223)  (234)
2,441 Net cash flows from operating activities   17  1,636  880  854
  Cash flows from investing activities         
 (384) Purchase of property, plant and equipment     (353)  (600)  (329)
 (221) Purchase of intangible assets     (321)  (150)  (396)
 (605) Net cash flows from investing activities     (674)  (750)  (725)
  Cash flows from financing activities         
 (26) Capital withdrawal by the Crown   9  -  -  -
 (26) Net cash flows from financing activities     -  -  -
 1,810 Net increase in cash held     962  130  129
 345 Cash at 1 July 2010     2,155  3,011  2,155
 2,155 Total cash at 30 June 2011     3,117  3,141  2,284

The net GST paid component of operating activities reflects the net GST paid to and received from the Inland Revenue Department. This component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes and to be consistent with the presentation basis of the other primary financial statements.

Statement of commitments

as at 30 June 2011

Non-cancellable operating lease commitments


The Ministry leases property in the normal course of business.  The majority of these leases are for premises, which have non-cancellable leasing periods ranging from 1 to 6 years.  The Ministry also outsources its IT support on a 3-year contract.

Actual
2009/10 $000 		   Actual
2010/11 $000 
  Non-cancellable operating lease commitments   
 1,299 Not later than 1 year   2,124
 4,837 Later than 1 year and not later than 5 years   6,308
 3,056 Later than 5 years   2,384
 9,192 Total non-cancellable lease commitments   10,816

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. Some accommodation leases are cancellable, subject to penalty. The amount disclosed is based on the current rental rates. Total operating lease cost is expensed on straight-line basis over the life of the lease.

The increase in the commitment is due to increases in rent for Wellington and Auckland following rent reviews, and a decrease in Christchurch due to a change in premises after the earthquakes, as well as the inclusion for the first time of the IT commitment. This contract expires in 2011/12.

Capital commitments

There were no capital commitments as at 30 June 2011 (2010: $nil).

Statement of contingent liabilities and contingent assets

as at 30 June

Quantifiable contingent liabilities
Actual
2009/10
$000 		   Actual
2010/11
$000 
-  Contractual dispute and related claim  161 
8  Personal grievance - 
8  161 

Contractual dispute and related claim

The Ministry is involved in a dispute regarding performance of a contract. There is also a claim for damages from an affected third party. 

Personal grievance

A former staff member took a grievance claim in 2009/10. This was settled in favour of the Ministry during 2010/11.

Contingent assets

The Ministry has no contingent assets (2010:$nil).

Statement of departmental expense and capital expenditure against appropriations

for the year ended 30 June 2011.

Actual 
Expenditure 2009/10
$000 		   Actual Expenditure 2010/11
$000 		 Voted Appropriation 2010/11
 $000 
  Vote Transport     
  Appropriations for classes of outputs     
 27,769 Policy advice   30,084  30,084
 17,344 Road user charges collection, investigation and enforcement   17,344  18,318
 1,615 Land transport revenue forecasting and strategy   1,488  1,950
 - Governance and performance advice and support   1,742  1,750
 - Search and rescue activity coordination PLA   1,134  1,136
 429 Refund of fuel excise duty   429  429
 240 Airport operation and administration   251  270
 2,315 Sector leadership and support   -  -
 49,712 Total appropriation for output expenses   52,472  53,937
  Appropriation for capital expenditure     
 605 Ministry of Transport - Capital expenditure PLA   674  725

The Voted Appropriation column includes all adjustments made in the 2010/11 Supplementary Estimates.

Statement of departmental unappropriated expenditure against appropriations

for the year ended 30 June 2011

Unappropriated Expenditure 
2009/10
$000		   Actual Expenditure 2010/11 $000  Voted Appropriation 2010/11 $000  Unappropriated Expenditure 2010/11 
$000 
  Vote Transport       
  Appropriations for classes of outputs       
 - Policy advice   30,084  30,084  -
 - Road user charges collection, investigation and enforcement   17,344  18,318  -
 - Land transport revenue forecasting and strategy   1,488  1,950  -
 - Governance and performance advice and support   1,742  1,750  -
 - Search and rescue activity coordination PLA   1,134  1,136  -
 - Refund of fuel excise duty   429  429  -
 - Airport operation and administration   251  270  -
 -    52,472  53,937  -

The Ministry did not incur any unappropriated expenditure during the year. Overall, expenditure remained within the total budget.
 
The Ministry did not incur any capital expenditure in excess of appropriation, nor breach its departmental net asset schedule during the year.

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