Schedules and Statements: Crown - Annual Report 2008/09

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:

• $1.081 billion of non-departmental revenue and receipts
• $2.660 billion of non-departmental payments
• $0.107 billion of non-departmental assets
• $0.518 billion of non-departmental liabilities

on behalf of the Crown for the year ended 30 June 2009.

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 2009

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

Actual 2007/08 $000		Notes	Actual 2008/09 $000	Main Estimates 2008/09 $000	Supplementary Estimates 2008/09 $000
1,042,450	Indirect taxation	2	1,003,574	1,093,672	985,686
150	Other 'sovereign power' revenue	3	124	10	10
12,908	Other operational revenue	4	70,615	10,500	65,386
4,302	Proceeds from sale of land	5	-	-	-
1,295	Share of net asset increase in joint venture airports	10	7,114	-	-
1,061,105	Total non-departmental revenue and receipts		1,081,427	1,104,182	1,051,082

 

Schedule of Non-departmental Expenses for the year ended 30 June 2009

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 2007/08 $000		Notes	Actual 2008/09 $000	Main Estimates 2008/09 $000	Supplementary Estimates 2008/09 $000
1,359,416	Non-departmental output classes	6	1,727,599	1,404,527	1,787,599
582,232	Purchase or development of capital assets	7	905,390	1,120,758	910,390
4,444	Other expenses to be incurred by the Crown	8	17,813	22,513	21,413
(7,800)	Land transport expenditure/(revenue)		-	-	-
6,156	Bad debts expense		2,398	-	5,000
(2,380)	Movement in doubtful debts provision		7,125	-	-
1,942,068	Total non-departmental expenses		2,660,325	2,547,798	2,724,402

 

Schedule of Non-departmental Assets as at 30 June 2009

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

Actual 2007/08        $000		Notes	Actual 2008/09 $000	Main Estimates 2008/09 $000	Supplementary Estimates 2008/09 $000
	Current Assets
11,920	Cash and bank balances		5,642	17,431	17,720
52,093	Receivables and advances	9	70,129	46,757	45,970
	Non-current assets
24,194	Investment in joint venture airports	10	31,308	24,797	26,092
88,207	Total non-departmental assets		107,079	88,985	89,782

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. No disclosure is made in this schedule.

Schedule of Non-departmental Liabilities as at 30 June 2009

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

Actual  2007/08        $000		Notes	Actual  2008/09 $000	Main Estimates 2008/09 $000	Supplementary Estimates 2008/09 $000
	Current liabilities
453,365	Payables	12	518,154	118,225	453,365
453,365	Total non-departmental liabilities		518,154	118,225	453,365

 

Statement of Non-departmental Expenditure and Capital Expenditure Appropriations for the year ended 30 June 2009

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

Actual          2007/08 $000		Actual          2008/09 $000	Main Estimates     2008/09 $000	Supplementary Estimates 2008/09 $000
	Appropriations for non-departmental output classes
-	Administration of the public transport concessions for SuperGold cardholders scheme	700	-	1,100
1,000	Bay of Plenty transport	-	-	-
-	Canterbury transport project	-	4,500	4,500
1,761	Civil aviation policy advice	2,261	2,261	2,261
-	Implementation of regional fuel tax	-	-	300
2,255	Licensing activities	2,095	2,475	3,275
182,226	Maintenance of local roads	240,622	193,159	240,622
209,406	Maintenance of state highways	298,524	221,971	298,524
76,063	Management of funding allocation system	74,156	73,633	74,156
5,189	Maritime safety regulation and monitoring	5,689	5,689	5,689
145	Maritime security	145	145	145
-	Motor vehicle registry	31,678	-	37,078
323,596	New and improved infrastructure for local roads	313,064	339,432	353,064
241,689	Passenger transport services	313,800	224,785	313,800
31,492	Promotion, information and education	30,545	34,948	30,545
2,000	Rail and sea freight	2,500	2,000	8,000
-	Regional development transport funding	8,000	10,000	10,000
210,000	Regional land transport	319,120	214,500	319,120
2,653	Regulatory enforcement	5,821	2,704	5,821
548	Regulatory implementation and enforcement	548	548	548
2,723	Reporting on accident or incident investigations	3,938	3,938	3,938
7,775	Research and performance monitoring	11,776	4,502	11,776
3,274	Search and rescue activities	6,772	7,078	7,078
27,524	Transport demand management, and walking and cycling	33,748	33,748	33,748
4,000	Waikato land transport	-	-	-
3,000	Waikato rail funding	4,586	5,000	5,000
17,097	Weather forecasts and warnings	17,511	17,511	17,511
4,000	Wellington land transport (Western corridor)	-	-	-
1,359,416	Sub-total	1,727,599	1,404,517	1,787,599

 

Actual 2007/08        $000		Actual 2008/09 $000	Main Estimates 2008/09 $000	Supplementary Estimates 2008/09 $000
	Appropriations for other expenses to be incurred by the Crown
-	Enhance public transport concessions for SuperGold card holders	13,300	18,000	16,900
674	International memberships	743	743	743
3,776	Motor vehicle registration/licenses and road user charges bad debt provision	2,398	-	5,000
3,270	New Zealand Railways Corporation - public policy projects	3,270	3,270	3,270
500	Railway Safety	500	500	500
8,220	Sub-total	20,211	22,513	26,413
	Appropriations for capital contributions to other organisations
95,300	ALPURT B2	24,948	-	24,948
-	Aviation Security Service	7,348	7,348	7,348
614	Crown contribution to joint venture airports	-	35	-
-	Joint venture airports - Crown contribution	820	-	1,284
2,000	Maritime New Zealand	1,000	1,000	1,000
1,236	Martime NZ	259	259	259
-	NZ Transport Agency*	20,345,525	20,540,280	20,547,270
2,667	Realignment of Buckle Street	-	5,333	-
100	Transport Accident Investigation Commission	250	250	250
101,917	Sub-total	20,380,150	20,554,505	20,582,359
	Appropriations for purchase or development of capital assets from the Crown
-	Accelerated State highway construction	30,000	-	35,000
-	New and improved infrastructure for State highways - Crown contribution	727,065	347,000	727,065
234,760	New and improved infrastructure for State highways - multi year	-	-	-
256,872	New and improved State highways infrastructure PLA	70,425	710,758	70,425
50,600	State highway construction programme guarantee	77,900	63,000	77,900
40,000	Tauranga Harbour Link project	-	-	-
582,232	Sub-total	905,390	1,120,758	910,390
2,051,785	Total non-departmental expenditure and appropriations	23,033,350	23,102,303	23,306,761

*Two existing 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 (budget $20,540,280,000 and Supplementary $20,540,280,000) were repaid to the Crown and then reinvested in the NZ Transport Agency.

Details of Multi-Year Appropriations

	Crown contribution to  joint venture airports $000	Joint venture airports -  Crown contribution $000
Commences	1 July 2005	1 July 2008
Expires	1 July 2008	30 June 2011
Appropriation at 1 July 2008	4,448	-
Adjustments for 2008/09	(4,448)	1,773
Total funding	-	1,773
Expenditure in prior years	2,675	-
Expenditure in current years	-	820
Actual expenditure to 30 June 2009	2,675	820
Appropriation remaining	-	953

 

 

 

 

 

In late 2007/08, it was noted that the scope of the existing Joint Venture Airport appropriation did not reflect the intentions of the Crown. Therefore, during 2008/09 the existing appropriation was disestablished and the balance of its funding transferred to a new appropriation with the correct scope.

Statement of Non-departmental Commitments as at 30 June 2009

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 2007/08 $000		Actual 2008/09 $000
	Operating Commitments
91,806	Other non-cancellable contracts for the supply of goods and services	74,295
91,806	Total operating commitments	74,295
	Term classification of commitments
17,511	Not later than one year	18,573
18,573	More than one year but less than two years	18,574
55,722	Between two and five years	37,148
91,806	Total operating commitments	74,295

 

 

 

 

 

The liability is a commitment to a State Owned Enterprise for the supply of outputs. 

Statement of Non-departmental Contingent Liabilities as at 30 June 2009

This statement discloses situations which exist at 30 June 2009, 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  2007/08 $000		Actual 2008/09 $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.

Further 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 30 June 2008).

Statement of Non-departmental Unappropriated Expenditure for the year ended 30 June 2009

Unappropriated expenditure was reported in three appropriations during 2008/09 (2007/08: $nil).

Motor vehicle registration/licences and road user charge bad debt provision
Unappropriated expenditure of $257,000 was incurred in this appropriation during 2008/09.

The appropriation was established in 2007/08 but, in error, was created only for that year when it should have been established for outyears as well. Bad debts of $257,000  were recognised in the first quarter before the error was corrected and the appropriation re-established.

International memberships
The scope of this appropriation allows for payments to the International Civil Aviation Organisation, the International Maritime Organisation and the World Meteorological Organisation. Since 2005, the Ministry has been paying an annual subscription to the Pacific Aviation Safety Office (PASO) as well. This expenditure is unappropriated because it is outside scope. PASO was not paid from the appropriation in 2008/09 as the issue had been identified and so the unappropriated expenditure related to prior years is shown below.

	2004/05 $000	2005/06 $000	2006/07 $000	2007/08 $000
Unappropriated expenditure	7	14	14	14

NZ Transport Agency
Unappropriated expenditure of $6.99 million was incurred in this appropriation during 2008/09.

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 out of scope and so unappropriated expenditure was incurred.


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