|
|
Notes to the Financial Statements
For the Year Ended 30 June
revenue crown | revenue department | revenue other | gain on sale of property, plant and equipment | personnel costs | operating costs | depreciation expense | capital charge | taxpayers' funds | debtors and receivables | property, plant and equipment | creditors and payables | provision for repayment of surplus to the crown | employee entitlements | finance lease liability | reconciliation of net surplus to net cash flows | financial instruments | contingencies | related party information | segment information | major budget variations
Revenue crown.
1) REVENUE CROWN |
|
2004
Actual |
|
2005
Actual |
2005
Main
Estimates |
2005
Supplementary
Estimates |
$000 |
|
$000 |
$000 |
$000 |
|
|
Vote: Fisheries |
|
|
|
5,161 |
Policy framework |
5,208 |
4,127 |
5,723 |
21,597 |
Fisheries information and monitoring |
29,141
|
29,186
|
32,457 |
9,604 |
Regulatory management |
10,597 |
10,866 |
11,097 |
7,630 |
Fisheries access and administration |
7,336 |
7,168 |
7,336 |
18,518 |
Enforcement of fisheries policies |
23,137 |
21,236 |
23,137 |
4,067 |
Prosecution of offences |
4,711 |
3,967 |
4,711 |
0 |
Aquaculture settlement |
517 |
0 |
667 |
|
Vote: Biosecurity - Fisheries |
|
|
|
2,442 |
Marine biosecurity advice |
605 |
5,782 |
605 |
|
69,019 |
Total revenue Crown |
81,252 |
82,332 |
85,733 |
|
Revenue department.
2) REVENUE DEPARTMENT |
|
804 |
Observer Charges |
411 |
102 |
425 |
0 |
Recovery of State Sector Retirement Savings Scheme costs |
391 |
194 |
380 |
0 |
Other |
23 |
0 |
63 |
|
804 |
Total revenue other |
825 |
296 |
868 |
| <><>
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Revenue other.
3) REVENUE OTHER |
|
476 |
Transhipment and observer charges |
363 |
586 |
200 |
515 |
Marine farming, licence fees, transfer and lease fees |
90 |
1,488 |
1,436 |
166 |
Boat registration and permit fees |
148 |
180 |
143 |
29 |
Gain on sale of property, plant and equipment (Note 4) |
36 |
0 |
0 |
275 |
Miscellaneous |
180 |
102 |
196 |
|
1,461 |
Total revenue other |
817 |
2,356 |
1,975 |
| <><>
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Gain on sale of property,plant and equipment.
4) GAIN ON SALE OF PROPERTY, PLANT AND EQUIPMENT |
|
29 |
Motor vehicles |
36 |
0 |
0 |
|
29 |
Net gain on sale of property, plant and equipment |
36 |
0 |
0 |
| <><>
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Personnel costs.
5) PERSONNEL COSTS |
|
23659 |
Salaries and wages |
26585 |
27829 |
27481 |
4476 |
Other |
7178 |
3764 |
6940 |
|
28135 |
Total personnel costs |
33763 |
31593 |
34421 |
| <><>
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Operating costs.
6) OPERATING COSTS |
|
2004
Actual |
|
2005
Actual |
2005
Main
Estimates |
2005
Supplementary
Estimates |
$000 |
|
$000 |
$000 |
$000 |
|
2,479 |
Asset operating costs |
2,541 |
2,811 |
2,530 |
13 |
Bad debts written-off |
1 |
0 |
0 |
1,610 |
Communications |
1,500 |
1,512 |
1,564 |
787 |
Computer consumables |
1,075 |
594 |
741 |
21,528 |
Contracts for services |
23,174 |
26,782 |
30,385 |
130 |
Fees for audit of the financial statements |
132 |
130 |
133 |
4 |
Fees to auditors for other services |
15 |
0 |
0 |
1,695 |
Legal |
923 |
720 |
2,082 |
1,882 |
Operating lease rentals |
2,326 |
1,878 |
1,948 |
1,330 |
Printed materials |
1,345 |
1,345 |
1,435 |
2,106 |
Travel |
2,887 |
2,476 |
2,787 |
3,765 |
Other operating costs |
3,688 |
11,628 |
7,349 |
|
37,329 |
Total operating costs |
39,607 |
49,876 |
50,954 |
| <><>
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Depreciation expense.
7) DEPRECIATION EXPENSE |
|
47 |
Buildings |
46 |
46 |
46 |
348 |
Leasehold improvements |
369 |
154 |
395 |
1,433 |
Plant and equipment |
1,246 |
2,182 |
1,490 |
111 |
Vessels |
82 |
136 |
120 |
411 |
Motor vehicles |
466 |
286 |
449 |
|
2,350 |
Total depreciation expense |
2,209 |
2,804 |
2,500 |
| <><>
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Taxpayers' funds.
| 9) TAXPAYERS' FUNDS |
|
| Taxpayers' funds comprises two components: |
| |
| a) General Funds |
7,466 |
General funds at start of period |
7,466 |
7,566 |
7,566 |
2,759 |
Net surplus |
6,638 |
0 |
0 |
100 |
Capital contribution |
300 |
538 |
300 |
(2,759) |
Provision for repayment of surplus to the Crown |
(6,638) |
0 |
0 |
0 |
Transfer from revaluation reserve |
161 |
0 |
161 |
|
7,566 |
General funds at end of period |
8,027 |
8,104 |
8,027 |
| <><>The Ministry paid a capital charge to the Crown on its net taxpayers' funds as at 30 June and 31 December. The capital charge rate for the year ended 30 June 2005 was 8.0% (2004: 8.5%).
Revaluation reserves.
| b) Revaluation Reserves |
2004 |
|
2005 |
| Land |
Buildings |
Vessels |
Total |
|
Land |
Buildings |
Vessels |
Total |
| |
|
|
|
|
$000 |
$000 |
$000 |
$000 |
|
96 |
476 |
326 |
898 |
Balance at start of period 2004 |
96 |
476 |
326 |
898 |
0 |
0 |
0 |
0 |
Transfer to general funds |
0 |
0 |
(161) |
(161) |
|
96 |
476 |
326 |
898 |
Balance at end of
period |
96 |
476 |
165 |
737 |
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Debtors and recievables.
| 10) DEBTORS AND RECEIVABLES |
|
2004
Actual |
|
2005
Actual |
$000 |
|
$000 |
|
436 |
Debtors |
96 |
|
Less: |
|
(93) |
Provision for doubtful debts |
(10) |
343 |
Net debtors |
86 |
487 |
Receivables |
744 |
13,932 |
Debtor: Crown funding |
21,540 |
|
14,762 |
Total debtors and receivables |
22,370 |
| <><>
Property,plant and equipment.
| 11) PROPERTY, PLANT AND EQUIPMENT |
|
147 |
Land - at valuation |
147 |
|
|
Buildings |
|
1,142 |
At valuation |
1,137 |
(74) |
Accumulated depreciation |
(120) |
|
1,068 |
Net book value |
1,017 |
|
|
Leasehold improvements |
|
| 2,713 |
At cost |
2,959 |
| (1,789) |
Accumulated depreciation |
(2,158) |
|
| 924 |
Net book value |
801 |
|
| |
Plant and equipment |
|
| 17,052 |
At cost |
16,999 |
| (14,256) |
Accumulated depreciation |
(14,015) |
|
| 2,796 |
Net book value |
2,984 |
|
| 933 |
Capital work in progress - at cost |
237 |
|
| |
Vessels |
|
| 904 |
At valuation |
768 |
| (146) |
Accumulated depreciation |
(173) |
|
| 758 |
Net book value |
595 |
|
| |
Motor vehicles |
|
| 2,600 |
At cost |
3,126 |
| (769) |
Accumulated depreciation |
(875) |
|
| 1,831 |
Net book value |
2,251 |
|
| |
Total property, plant and equipment |
|
| 25,491 |
At cost/valuation |
25,373 |
| (17,034) |
Accumulated depreciation |
(17,341) |
|
| 8,457 |
Total net book value |
8,032 |
| <><>
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Creditors and payables.
| 12) CREDITORS AND PAYABLES |
|
2004
Actual |
|
2005
Actual |
$000 |
|
$000 |
|
535 |
Creditors |
802 |
9,600 |
Accrued expenses |
12,927 |
|
10,135 |
Total creditors and payables |
13,729 |
| <><>
Valuation information
Land and buildings were revalued in January 2003 at fair value as established by Mr William Bunt of CB Ellis Limited,an independent registered valuer. Vessels were revalued in April 2003 by a marine consultant. Subsequent additions have been recordedat cost less depreciation.
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Land and buildings were revalued in January 2003 at fair value as established by Mr William Bunt of CB Ellis Limited,an independent registered valuer. Vessels were revalued in April 2003 by a marine consultant. Subsequent additions have been recordedat cost less depreciation.
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Land and buildings were revalued in January 2003 at fair value as established by Mr William Bunt of CB Ellis Limited,an independent registered valuer. Vessels were revalued in April 2003 by a marine consultant. Subsequent additions have been recordedat cost less depreciation.
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Provision for repayment of surplus to the crown.
| 13) PROVISION FOR REPAYMENT OF SURPLUS TO THE CROWN |
|
2,759 |
Net surplus |
6,638 |
|
2,759 |
Total provision for repayment of surplus |
6,638 |
| <><>
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Employee entitlements.
| 14) EMPLOYEE ENTITLEMENTS |
|
|
Annual
Leave |
Other
Personnel
Costs |
Total |
| |
$000 |
$000 |
$000 |
|
| Current liabilities |
|
|
|
| Balance at start of period 2004 |
1,465 |
424 |
1,892 |
| Expenditure during the period |
(1,794) |
(424) |
(2,173) |
| Increase in provision |
1,954 |
97 |
1,770 |
|
| Balance at end of period |
1,673 |
97 |
1,770 |
|
|
Retirement
Leave |
Long Service
Leave |
Total |
| |
$000 |
$000 |
$000 |
|
| Term Liabilities |
|
|
|
| Balance at start of period |
1,750 |
415 |
2,165 |
| Expenditure during the period |
(25) |
(36) |
(61) |
| Increase in provision |
143 |
70 |
213 |
|
| Balance at end of period |
1,868 |
449 |
2,317 |
| <><>
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Finance lease liability.
| 15) FINANCE LEASE LIABILITY |
|
2004
Actual |
|
2005
Actual |
$000 |
|
$000 |
|
|
Total minimum lease payments due: |
|
15 |
Not later than one year |
0 |
3 |
Later than one year, not later than two years |
0 |
0 |
Later than two years, not later than five years |
0 |
0 |
More than five years |
0 |
|
18 |
Total finance lease obligations |
0 |
|
| |
Less: |
|
(1) |
Future finance lease charges |
0 |
|
17 |
Net finance lease liability |
0 |
|
|
Net finance lease liabilities are classified as follows: |
|
14 |
Current finance lease liability |
0 |
3 |
Non-current finance lease liability |
0 |
|
17 |
Net finance lease obligations |
0 |
| <><>
Retirement Leave
Employees are entitled to retirement leave or approved early retirement, providing they have completed ten or more years of service and the retirement is the permanent cessation of regular paid employment with the Ministry. Long Service
Leave Employees who have completed ten years' continuous government service may be granted ten working days' long serviceleave. A further ten working days are available after completion of twenty years' continuous service. Long service leave must be taken withinfive years of qualification. Employee entitlements to long service leave and retirement leave are valued on an actuarial basis. Mr Bernie Higgins of Aon ConsultingNew Zealand Limited, an independent consulting actuary, undertook this valuation at 30 June 2005.
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Employees are entitled to retirement leave or approved early retirement, providing they have completed ten or more years of service and the retirement is the permanent cessation of regular paid employment with the Ministry. Long Service
Leave Employees who have completed ten years' continuous government service may be granted ten working days' long serviceleave. A further ten working days are available after completion of twenty years' continuous service. Long service leave must be taken withinfive years of qualification. Employee entitlements to long service leave and retirement leave are valued on an actuarial basis. Mr Bernie Higgins of Aon ConsultingNew Zealand Limited, an independent consulting actuary, undertook this valuation at 30 June 2005.
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Employees are entitled to retirement leave or approved early retirement, providing they have completed ten or more years of service and the retirement is the permanent cessation of regular paid employment with the Ministry. Long Service
Leave Employees who have completed ten years' continuous government service may be granted ten working days' long serviceleave. A further ten working days are available after completion of twenty years' continuous service. Long service leave must be taken withinfive years of qualification. Employee entitlements to long service leave and retirement leave are valued on an actuarial basis. Mr Bernie Higgins of Aon ConsultingNew Zealand Limited, an independent consulting actuary, undertook this valuation at 30 June 2005.
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Reconciliation of net surplus to net cash flows from operating activities for the year ended 30 June.
| 16) RECONCILIATION OF NET SURPLUS TO NET CASH FLOWS FROM OPERATING ACTIVITIES FOR THE YEAR ENDED 30 JUNE |
|
2004
Actual |
|
2005
Actual |
2005
Main
Estimates |
2005
Supplementary
Estimates |
$000 |
|
$000 |
$000 |
$000 |
|
2,759 |
Net surplus |
6,638 |
0 |
0 |
|
Add non-cash items: |
|
|
|
2,350 |
Depreciation |
2,209 |
2,804 |
2,500 |
|
2,350 |
Total non-cash items |
2,209 |
2,804 |
2,500 |
|
|
Movements in working capital items: |
|
|
|
|
(Increase)/decrease in |
|
|
|
2,871 |
- debtors and receivables |
(7,608) |
0 |
3,017 |
111 |
- prepayments |
(150) |
0 |
(106) |
(2) |
- inventories |
(3) |
0 |
(32) |
|
Increase/(decrease) in |
|
|
|
(5,439) |
- creditors and payables |
3,594 |
(948) |
1,326 |
444 |
- employee entitlements |
30 |
300 |
493 |
134 |
- unearned revenue |
48 |
0 |
(134) |
17 |
- finance lease liability |
(17) |
0 |
0 |
|
(1,864) |
Net increase/(decrease) in working capital movements |
(4,106) |
(648) |
4,564 |
|
| |
Add/(less) investing activity items: |
|
|
|
(29) |
Net (gain)/loss on sale of property, plant and equipment |
1 |
0 |
0 |
|
(29) |
Total investing activity items |
1 |
0 |
0 |
|
3,216 |
Net cash inflow/(outflow) from operating activities |
4,742 |
2,156 |
7,064 |
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17) FINANCIAL INSTRUMENTS |
|
The Ministry is party to financial instrument arrangements as part of its everyday operations. These include instruments such as bank balances, accounts receivable and creditors. Credit RiskCredit risk is the risk a third party will default on its obligations to the Ministry, causing the Ministry to incur a loss. In the normal course of its business, the Ministry incurs credit risk from debtors and transactions with financial institutions. The Ministry does not require any collateral or security to support financial instruments with financial institutions the Ministry deals with, as these entities have high credit ratings. For its other financial instruments, the Ministry does not have significant concentrations of credit risk.
| MAXIMUM CREDIT RISK AT 30 JUNE |
|
2004
Actual |
|
2005
Actual |
$000 |
|
$000 |
|
2,139 |
Cash |
2,637 |
14,762 |
Debtors and receivables |
22,370 |
|
16,901 |
Maximum credit risk |
25,007 |
| Fair Value
The fair value of all financial instruments is equivalent to the carrying amount disclosed in the Statement of Financial Position. Currency Risk and Interest Rate Risk
Currency risk is the risk the amounts recorded as debtors and creditors may fluctuate as a result of changes in foreign exchange rates. Interest rate risk is the risk the value of a financial instrument will fluctuate due to changes in market interest rates. The Ministry has no significant exposure to either currency risk or interest rate risk. back to top >>
The Ministry does not have any contingent assets as at 30 June 2005 (2004: Nil). Contingent liabilities are separately disclosedin the Statement of Contingent Liabilities. back to top >>
19) RELATED PARTY INFORMATION |
|
The Ministry is a wholly owned entity of the Crown and enters into transactions with other government departments, Crownagencies and state-owned enterprises. These transactions are not considered to be related party transactions. back to top >>
The Ministry undertakes fisheries management activities throughout New Zealand. back to top >>
21) MAJOR BUDGET VARIATIONS |
|
Statement of Financial Performance The variations from the initial 2004/05 Budget Night (Main) Estimates to Supplementary Estimates were due to:
|
$000 |
|
| Finalisation of funding to be carried forward from 2003/04 to 2004/05 for fisheries research and marine biodiversity activities |
6,674 |
| Additional compliance costs |
1,901 |
| An increase in legal expenses |
800 |
| An increase in prosecution costs |
744 |
| Implementation of the aquaculture settlement as provided by the Ma-ori Commercial Aquaculture Claims Settlement Act 2004 |
667 |
| Additional work related to aquaculture, foreshore and seabed, and Ma-ori fisheries law reforms |
641 |
| Finalisation of funding to be carried forward from 2003/04 to 2004/05 for processing of aquaculture applications |
166 |
| Provision of database management services to the Ministry of Agriculture and Forestry |
87 |
| Provision of systems support to the Maritime Safety Authority |
68 |
| State Sector Retirement Savings Scheme costs |
52 |
| Cost of tendering Crown-owned quota and ACE |
45 |
| A reduction in departmental activity costs |
(163) |
| A reduction in fisheries research costs |
(2,006) |
| The transfer of biosecurity activities to the Ministry of Agriculture and Forestry |
(6,084) |
|
| Total |
3,592 |
| <><>back to top >>
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