Annual Report for the Year Ended 30 June 2001

• Our Vision
• Chief Executive's Overview
• Key Achievements
• 2000/2001 Financial Performance
• Key Statistics for the Year ended 30 June 2001
• Statement of Responsibility
• Report of the Audit Office
• Financial Statements
• Output Class Performance
• References

Annual Report for the Year Ended 30 June 2001

Note 13: Creditors and Payables

Note 13: Creditors and Payables.

	30/6/01 Actual $000	30/6/00 Actual $000

Trade creditors	4,315	352
Accrued expenses	7,632	10,876
GST payable	1,206	437

Total creditors and payables

13,153

11,665

Note 14: Provision for Repayment of Surplus to the Crown

Note 14: Provision for Repayment of Surplus to the Crown.

	30/6/01 Actual $000	30/6/00 Actual $000

Net surplus	2,478	2,484
Add other expenses:
departmental restructuring expenses	160	48

Total provision for repayment of surplus

2,638

2,532

Note 15: Employee Entitlements

Note 15: Employee Entitlements.

	30/6/01 Actual $000	30/6/00 Actual $000

Non-current liabilities
Retirement and long service leave	1,546	1,335

Total non-current portion

1,546

1,335

Current liabilities
Annual leave	1,138	1,059
Other personnel expenses	823	923

Total current portion

1,961

1,982

Total employee entitlements

3,507

3,317

As at 30 June 2001 employee entitlements to long service and retiring leave were valued on an actuarial basis by Aon Consulting New Zealand Limited.

Note 16: Financial Instruments

The Ministry is party to financial instrument arrangements as part of its everyday operations. These include instruments such as bank balances, investments, accounts receivable and trade creditors.

Credit Risk Credit risk is the risk that 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 its trade debtors, transactions with financial institutions and the New Zealand Debt Management Office.

The Ministry does not require any collateral or security to support financial instruments with financial institutions that the Ministry deals with, or with the NZDMO, as these entities have high credit ratings. For its other financial instruments, the Ministry does not have significant concentrations of credit risk.

Fair Value The fair value of all financial instruments is equivalent to the carrying amount disclosed in the Statement of Financial osition.

Currency Risk and Interest Rate Risk Currency risk is the risk that debtors and creditors due in foreign currency will fluctuate due to changes in foreign exchange rates. Interest rate risk is the risk that the Ministry’s return on the funds it has invested will fluctuate due to changes in market interest rates.

Under sections 46 and 47 of the Public Finance Act, the Ministry cannot raise a loan without Ministerial approval and no such loans have been raised. Accordingly there is no interest rate exposure on funds borrowed. The Ministry has no significant exposure to currency risk or interest rate risk on its financial instruments.

Note 17: Contingencies

The Ministry does not have any contingent assets as at 30 June 2001 (30 June 2000 nil).

Contingent liabilities are separately disclosed in the Statement of Contingent Liabilities.

Note 18: Related Party Information

The Ministry is a wholly owned entity of the Crown. The Government significantly influences the roles of the Ministry as well as being its major source of revenue.

The Ministry enters into numerous transactions with other government departments, Crown agencies and state-owned enterprises on an arms-length basis. These transactions are not considered to be related party transactions.

Apart from those transactions described above, the Ministry has not entered into any related party transactions.

Note 19: Major Budget Variations

Statement of Financial Performance and Statement of Financial Position Explanations for the major variations from the initial Budget Night Estimates were outlined in the Supplementary Estimates. The expenditure variations shown in Note 1 were due, in the main, to:

$000 (GST excl.)
(i)	the finalisation of fisheries research services to be provided in the 2000/2001 financial year, following consultation with fisheries stakeholders	2,055
(ii)	an increase in observer coverage	1,000
(iii)	a number of funding transfers from the 2000/2001 financial year to the 2001/2002 financial year, namely:	(500)
	- marine biodiversity	(732)
	- input and participation into fisheries management processes	(488)
	- implementation of the fisheries reform package	(300)
	- implementation of customary Maori regulations	(200)

Note 20: Segment Information

The Ministry undertakes fisheries management activities throughout New Zealand.

Statements of Service Performance for the Year Ended 30 June 2000

Statements of Service Performance for each Output Class, together with the actual and budgeted costs for each Output Class and contributing Outputs are detailed in the following pages. Achievements during the year should be read in conjunction with the performance standards set out in the Departmental Forecast Report signed in May 2000.

Consolidated Output Classes - Statement of Financial Performance

Consolidated Output Classes - Statement of Financial Performance.

	30/06/01 Actual $000	30/06/01 Budget $000	30/06/01 Actual as % of Budget

Revenue:
Crown	60,469	60,469	100
Other	2,298	3,012	76

Total revenue

62,767

63,481

99

Expenses:
Vote: Fisheries
Policy Framework	6,092	6,252	97
Fisheries Information and Monitoring	19,230	19,964	96
Regulatory Management	5,503	5,575	99
Fisheries Access and Administration	9,479	10,137	94
Enforcement of Fisheries Policies	16,307	16,650	98
Prosecution of Offences	2,465	2,651	93
Vote: Biosecurity (Fisheries)
Policy Advice	1,205	2,252	54

Total expenses

60,281

63,481

95

Surplus

2,486

0

-

Standards to be Adopted for the Provision of Policy Advice

All policy advice from the Ministry will be delivered in accordance with the following standards:

Purpose
Reports clearly state their purpose and address any questions that have been set.

Logic
Assumptions behind the advice are explicit, the argument logical and supported by facts.

Accuracy
The facts in the papers are accurate and all material facts have been included.

Options
An adequate range of options, assessed for benefits, costs and consequences to fisheries management was included in most papers.

Consultation
Evidence exists of adequate consultation with interested parties where applicable and possible objections to the proposals have been identified.

Practicality
Problems of implementation, technical feasibility, compliance costs, enforcement implications, timing and consistency with other policies have been considered.

Presentation
Material presented meets Cabinet Office requirements.

Review
The Minister's views on the quality of advice will be sought through appropriate means on a six-monthly basis.