|
|
Notes to the Financial Statements
for the year ended 30 June
1 Revenue Crown
|
|
2007
Main
Estimates
$000 |
2007 Supplementary Estimates
$000 |
2007
Actual
$000 |
2006
Actual
$000 |
|
Policy advice |
5,849 |
6,745 |
6,745 |
5,691 |
Fisheries information |
27,858 |
30,533 |
27,586 |
26,015 |
Fisheries operations |
22,020 |
22,924 |
22,924 |
19,365 |
Fisheries compliance |
29,334 |
29,634 |
29,634 |
31,281 |
Aquaculture settlement |
1,553 |
1,296 |
1,096 |
1,046 |
|
Total revenue Crown |
86,614 |
91,132 |
87,985 |
83,398 |
|
2 Revenue Department
|
|
2007
Main
Estimates
$000 |
2007 Supplementary Estimates
$000 |
2007
Actual
$000 |
2006
Actual
$000 |
|
Recovery of state sector retirement savings scheme costs |
664 |
804 |
768 |
709 |
Observer charges |
710 |
710 |
695 |
510 |
Fisheries expertise seconded to the FAO |
285 |
285 |
285 |
285 |
Biosecurity data management services provided to MAF |
150 1 |
7 |
0 |
150 |
Other |
0 |
0 |
0 |
34 |
|
Total revenue department |
1,809 |
1,816 |
1,748 |
1,688 |
|
3 Revenue Other
|
|
2007
Main
Estimates
$000 |
2007 Supplementary Estimates
$000 |
2007
Actual
$000 |
2006
Actual
$000 |
|
Marine farming, licence fees, transfer and lease fees |
400 |
305 |
273 |
395 |
Transhipment and observer charges |
468 |
648 |
575 |
324 |
Permit fees |
150 |
198 |
189 |
166 |
Gain on sale of property, plant and equipment (Note 4) |
0 |
0 |
62 1 |
8 |
Miscellaneous |
0 |
0 |
61 |
76 |
|
Total revenue other |
1,018 |
1,151 |
1,160 |
979 |
| 4 Gain on Sale of Property, Plant and Equipment
|
|
2007
Main
Estimates
$000 |
2007 Supplementary Estimates
$000 |
2007
Actual
$000 |
2006
Actual
$000 |
|
| Motor vehicles |
0 |
0 |
0 |
11 |
| Vessels |
0 |
0 |
60 |
7 |
| Computer equipment |
0 |
0 |
2 |
0 |
|
| Net gain on sale of property, plant and equipment |
0 |
0 |
62 1 |
8 |
| 5 Personnel Costs
|
|
2007
Main
Estimates
$000 |
2007 Supplementary Estimates
$000 |
2007
Actual
$000 |
2006
Actual
$000 |
|
Salaries and wages |
36,147 |
34,388 |
33,795 |
30,205 |
Other |
2,080 |
6,724 |
6,554 |
7,280 |
|
Total personnel costs |
38,227 |
41,112 |
40,349 |
37,485 |
|
6 Operating Costs
|
|
2007
Main
Estimates
$000 |
2007 Supplementary Estimates
$000 |
2007
Actual
$000 |
2006
Actual
$000 |
|
| Advertising, Info and Publicity |
543 |
685 |
647 |
584 |
| Asset operating costs |
3,033 |
3,047 |
3,692 |
3,652 |
| Bad debts written-off |
0 |
1 |
3 |
0 |
| Communications |
1,391 |
1,364 |
1,360 |
1,600 |
| Computer consumables |
973 |
1,567 |
1,766 |
1,055 |
| Contract for services |
28,459 |
31,643 |
28,547 |
24,589 |
| Fees for audit of the financial statements |
150 |
172 |
172 |
135 |
| Fees to auditors for other services |
0 |
20 |
14 |
12 |
| Legal |
789 |
2,123 |
1,716 |
1,272 |
| Operating lease rentals |
3,146 |
2,732 |
2,507 |
2,206 |
| Printed materials |
1,057 |
835 |
833 |
1,385 |
| Travel |
3,635 |
4,719 |
4,368 |
3,506 |
| Other operating costs |
4,775 |
624 |
1,049 |
4,088 |
|
| Total operating costs |
47,951 |
49,532 |
46,674 |
44,084 |
|
7 Depreciation Expense
|
|
2007
Main
Estimates
$000 |
2007 Supplementary Estimates
$000 |
2007
Actual
$000 |
2006
Actual
$000 |
|
| Buildings and Leasehold Improvements |
436 |
548 |
466 |
605 |
| Plant and equipment |
1,525 |
1,427 |
1,652 |
1,274 |
| Motor vehicles |
419 |
484 |
496 |
489 |
| Vessels |
120 |
101 |
108 |
78 |
|
| Total depreciation expense |
2,500 |
2,560 |
2,722 |
2,446 |
|
8 Capital ChargeThe 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 2007 was 7.5%: (2006: 8.0%).
9 Taxpayers' Funds
|
|
2007
Main
Estimates
$000 |
2007 Supplementary Estimates
$000 |
2007
Actual
$000 |
2006
Actual
$000 |
|
| Taxpayers' funds comprises two components: |
|
|
|
|
| a) General Funds |
|
|
|
|
| General funds at start of period |
12,052 |
12,062 |
12,062 |
8,027 |
| Net surplus |
0 |
0 |
189 |
1,349 |
| Capital contribution |
0 |
0 |
0 |
4,025 |
| Provision for repayment of surplus to the Crown |
0 |
0 |
(189 ) |
(1,349 ) |
| Transfer from revaluation reserve |
0 |
5 |
5 |
10 |
|
| General funds at end of period |
12,052 |
12,067 |
12,067 |
12,062 |
| b) Revaluation Reserves
|
| 2006 |
2006 |
2007 |
|
2007 |
|
Land
$000 |
Building
$000 |
Vessels
$000 |
Total
$000 |
|
Land
$000 |
Buildings
$000 |
Vessels
$000 |
Total
$000 |
|
|
|
|
|
Balance at start |
|
|
|
|
| 96 |
476 |
165 |
737 |
of period |
96 |
476 |
155 |
727 |
|
|
|
|
Transfer to |
|
|
|
|
| 0 |
0 |
(10 ) |
(10 ) |
general funds |
0 |
0 |
(5 ) |
(5 ) |
|
|
|
|
Balance at |
|
|
|
|
|
| 96 |
476 |
155 |
727 |
end of period |
96 |
476 |
150 |
722 |
|
10 Debtors and Receivables
|
|
2007
Actual
$000 |
2006
Actual
$000 |
|
| Debtors |
609 |
763 |
| Less: |
|
|
| Provision for doubtful debts |
(114 ) |
(160 ) |
|
| Net debtors |
495 |
603 |
| Receivables |
398 |
692 |
| Debtor: Crown funding |
16,753 |
17,270 |
|
| Total debtors and receivables |
17,646 |
18,565 |
|
11 Property, Plant and Equipment
|
|
2007
Actual
$000 |
2006
Actual
$000 |
|
| Land - at valuation |
147 |
147 |
|
| Buildings |
|
|
| At valuation |
2,406 |
2,368 |
| Accumulated depreciation |
(256 ) |
(167 ) |
|
| Net book value |
2,150 |
2,201 |
|
| Leasehold improvements |
|
|
| At cost |
3,992 |
4,732 |
| Accumulated depreciation |
(462 ) |
(2,716 ) |
|
| Net book value |
3,530 |
2,016 |
|
| Plant and equipment |
|
|
| At cost |
13,536 |
19,221 |
| Accumulated depreciation |
(9,635 ) |
15,118 ) |
|
| Net book value |
3,901 |
4,103 |
|
| Capital work in progress - at cost |
887 |
284 |
| Motor vehicles |
|
|
| At cost |
2,713 |
3,024 |
| Accumulated depreciation |
(1,083 ) |
(913 ) |
|
| Net book value |
1,630 |
2,111 |
|
| Vessels |
|
|
| At valuation |
770 |
734 |
| Accumulated depreciation |
(344 ) |
(237 ) |
|
| Net book value |
426 |
497 |
|
| Total property, plant and equipment |
|
|
| At cost / valuation |
24,451 |
30,510 |
| Accumulated depreciation |
(11,780 ) |
(19,151 ) |
|
| Total net book value |
12,671 |
11,359 |
|
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 recorded at cost less depreciation.
12 Creditors and Payables
|
|
2007
Actual
$000 |
2006
Actual
$000 |
|
| Creditors |
2,941 |
5 |
| Accrued expenses |
12,241 |
12,805 |
|
| Total creditors and payables |
15,182 1 |
2,810 |
|
13 Provision for Repayment of Surplus to the Crown
|
|
2007
Actual
$000 |
2006
Actual
$000 |
|
| Net surplus |
189 |
1,349 |
|
| Total provision for repayment of surplus |
189 |
1,349 |
|
14 Employee Entitlements
|
|
Annual Leave
$000 |
Other Personnel Costs
$000 |
Total
$000
|
|
| Current liabilities |
|
|
|
|
| Balance at start of period 2006 |
1,887 |
232 |
2,119 |
|
| Expenditure during the period |
(1,460 ) |
(232 ) |
(1,692 ) |
| Increase in provision |
1,695 |
124 |
1,819 |
|
| Balance at end of period 2007 |
2,122 |
124 |
2,246 |
|
Retirement Leave |
Long Service Leave |
Total |
|
$000 |
$000 |
$000 |
| Term Liabilities |
|
|
|
| Balance at start of period 2006 |
2,192 |
522 |
2,714 |
| Expenditure during the period |
(41 ) |
(51 ) |
(92 ) |
| Increase in provision |
155 |
55 |
210 |
| Balance at end of period 2007 |
2,306 |
526 |
2,832 |
|
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 service leave. A further ten working days are available after completion of twenty years’ continuous service. Long service leave must be taken within five years of qualification.
Employee entitlements to long service leave and retirement leave are valued on an actuarial basis. Mr Bernie Higgins of Aon Consulting New Zealand Limited, an independent consulting actuary, undertook this valuation at 30 June 2007. For the purpose of this valuation the following key assumptions were used:
|
|
31/12/2006 % |
30/6/2007
% |
|
| Discount Rate Projection - Year 1 |
6.41 |
7.37 |
| Discount Rate Projection - Year 2 |
6.45 |
7.21 |
| Discount Rate Projection - Year 3 |
6.39 |
7.03 |
| Discount Rate Projection - Year 4 |
6.24 |
6.92 |
| Discount Rate Projection - Year 5 |
6.13 |
6.75 |
| Discount Rate Projection - Year 6 |
5.93 |
6.55 |
| Discount Rate Projection - Year 7 |
5.80 |
6.40 |
| Discount Rate Projection - Year 8 |
5.71 |
6.29 |
| Discount Rate Projection - Year 9 |
5.67 |
6.28 |
| Discount Rate Projection - Year 10+ |
5.65 |
6.27 |
|
| Long Term Annual Rate of Salary Growth |
|
3.00 |
A promotional scale is added to the base salary growth rate of 3% p a |
|
In-Service decrements representing the probabilities of Resignation, Death, Disablement, Medical and Early Retirement have been taken from the measured experience of superannuation schemes in New Zealand.
15 Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the Year Ended 30 June
|
|
2007 Main Estimates $000 |
2007 Supplementary Estimates $000 |
2007 Actual
$000 |
2006
Actual
$000 |
|
| Net surplus |
0 |
0 |
189 |
1,349 |
| Add non-cash items: |
|
|
|
|
| Depreciation |
2,500 |
2,560 |
2,722 |
2,446 |
|
| Total non-cash items |
2,500 |
2,560 |
2,722 |
2,446 |
|
| Movements in working capital items: |
|
|
|
|
| (Increase)/decrease in |
|
|
|
|
| - debtors and receivables |
0 |
(226 ) |
919 |
3,805 |
| - prepayments |
0 |
221 |
(171 ) |
(177 ) |
| - inventories |
0 |
0 |
0 |
17 |
| Increase/(decrease) in |
|
|
|
|
| - creditors and payables |
100 |
1,886 |
2,372 |
(919 ) |
| - employee entitlements |
200 |
549 |
245 |
746 |
| - unearned revenue |
0 |
(76 ) |
(61 ) |
(106 ) |
|
| Net increase/(decrease) in working capital items |
300 |
2,354 |
3,304 |
3,366 |
|
| Add/(less) investing activity items: |
|
|
|
|
| Net (gain)/loss on sale of property, plant and equipment |
0 |
0 |
(62 ) |
(18 ) |
|
| Total investing activity items |
0 |
0 |
(62 ) |
(18 ) |
|
| Net cash inflow/(outflow) from operating activities |
2,800 |
4,914 |
6,153 |
7,143 |
|
16 Financial InstrumentsThe 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 Risk Credit 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
|
|
2007
Actual
$000 |
2006
Actual
$000 |
|
| Cash |
2,244 |
1,412 |
| Debtors and receivables |
17,646 |
18,565 |
|
| Maximum credit risk |
19,890 |
19,977 |
| 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.
17 ContingenciesThe Ministry does not have any contingent assets as at 30 June 2007 (2006: Nil). Contingent liabilities are separately disclosed in the Statement of Contingent Liabilities. 18 Related Party InformationThe Ministry is a wholly owned entity of the Crown and enters into transactions with other government departments, Crown agencies and state-owned enterprises on an ‘arm’s length’ basis. These transactions are not considered to be related party transactions. 19 Segment InformationThe Ministry undertakes fisheries management activities throughout New Zealand.
20 Major Budget VariationsStatement of Financial Performance The variations from the initial 2006/2007 Budget Night (Main) Estimates to Supplementary Estimates were due to:
|
|
|
$000 |
|
| 1 |
The carry forward of fisheries research funding from 2005/06 into 2006/07 |
3,264 |
| 2 |
A transfer from 2005/06 to fund commitments coming to charge in 2006/07 |
995 |
| 3 |
An increase in litigation costs |
800 |
| 4 |
The carry forward of aquaculture settlement funding from 2005/06 into 2006/07 |
434 |
| 5 |
Increase in funding for the State Sector Retirement Savings Scheme |
140 |
| 6 |
Funding provided from the Resource Management Act/Coastal Maritime |
|
|
Area Contingency fund for aquaculture implementation projects |
105 |
| 7 |
The cost of tendering Crown owned quota and ACE |
100 |
| 8 |
Increase in funding to support the Growth and Innovation Framework |
73 |
| 9 |
A transfer to outyears to fund the South Pacific Regional Fisheries |
|
|
Management Organisation (SPRFMO) ( |
1,000 ) |
| 10 |
The carry forward of aquaculture settlement funding from 2006/07 to 2007/08 |
(200 ) |
| 11 |
A contribution made to the National Maritime Coordination Centre |
(53 ) |
|
Total |
4,658 |
|
These movements are shown in the table below.
| ($000) |
Fisheries Policy |
Fisheries Information |
Fisheries Operations |
Fisheries Compliance |
Aquaculture |
Total |
| Main Estimates |
6,185 |
29,138 |
22,950 |
29,615 |
1,553 |
89,441 |
Cabinet approvals |
|
|
800 3 |
|
|
800 |
Fiscally neutral adjustments |
878 |
(400 ) ( |
533 ) |
544 |
(489 ) - |
|
| Transfers to/from |
73 8 |
|
105 6 |
(53 )11 |
|
125 |
| Ministry |
13 5 |
6 5 |
40 5 |
80 5 |
1 5 |
140 |
| Expense transfers |
85 2 |
3,264 1 |
785 2 1 |
25 2 |
434 4
(200 )10 |
4,693
(200 ) |
| SPRFMO |
(140 )9 ( |
9 )9 |
(533 )9 |
(316 )9 |
(2 )9 |
(1,000 ) |
| Other |
|
|
100 7 |
|
|
100 |
Total Appropriations |
7,094 |
31,999 |
23,714 |
29,995 |
1,297 |
94,099 |
Actual expenditure |
6,884 |
28,873 |
23,980 |
29,980 |
987 |
90,704 |
|
|