Notes to the Non-Departmental Schedules

for the year ended 30 June

1 Cost Recovery Levies

2 Other Revenue

3 Major Budget Variations

The variations from the initial 2007/2008 Budget Night (Main) Estimates to Supplementary Estimates were due to:

4 Operating Expenditure

5 Cash

This comprises balances of the Crown bank accounts managed by the Ministry of Fisheries on the Crown’s behalf pursuant to section 4 of the Public Finance Act 1989.

These balances represent funds drawn down from the New Zealand Debt Management Office at the Treasury for payments to be made on behalf of the Crown but not yet paid, revenue receipts not yet transferred to the Crown and GST payable to the Department of Inland Revenue on revenue invoiced on behalf of the Crown.

6 Debtors and Other Receivables

Trade debtors are generally on 30 day terms.

As at 30 June 2008 and 2007 all debtors have been assessed for impairment and appropriate provisions applied, as detailed below:

The provision for doubtful debts has been calculated based on forecast losses for the Crown’s pool of debtors. Forecast losses have been determined based on a review of specific debtors.

Movements in the provision for doubtful debts are as follows:

7 Prepayments

8 Creditors and Other Payables

Creditors and other payables are non-interest bearing and are normally settled on 30 day terms, therefore the carrying value of creditors and other payables approximates their fair value.

9 Over and Under Recovered Costs

Section 265 of the Fisheries Act 1996 creates a mandatory obligation on the Minister of Fisheries to have regard to under and over recovery of costs of any conservation service or fisheries service in a previous financial year when recommending a cost recovery levy order for a current/ future year.

This provision reflects the balance of the net over and under recovery of cost recovery levies for the period 1 October 1995 to 30 June 2008 to be applied against future cost recovery levy orders.

10 Term Liabilities

The Mäori Commercial Aquaculture Claims Settlement Act 2004 provides for a full and final settlement of Mäori claims to commercial aquaculture since 21 September 1992. It requires iwi to be provided with 20% of all new aquaculture space created through the establishment of Aquaculture Management Areas (“AMAs’) after 1 January 2005. It also establishes the Crown’s obligation to provide iwi with the equivalent of 20% of the aquaculture space created between 21 September 1992 and 1 January 2005. If the settlement cannot be achieved through a transfer of “space,” then it must be resolved through a financial transfer to iwi.

11 Explanation of Transition to NZ IFRS

Reconciliation of assets and liabilities

There has been one adjustment to non-departmental recognised assets and equity on transition to NZ IFRS, as outlined below.

Intangible assets

Under previous NZ GAAP Crown owned quota was classified as an intangible asset. On transition to NZ IFRS Crown owned quota is considered to be internally generated and has been removed from the schedule of non-departmental assets.