Annual Report for the year ended 30 June 2002

Presented to the House of Representatives pursuant to Section 39 of the Public Finance Act, 1989

Contents

• Letter to Minister
• Our Vision
• Chief Executive’s Overview
• Strategic Context 2001/04
• Key Achievements
• Fisheries Research
• Ministry Performance For The Year Ended 30 June 2002
• Statement of Resources
• Terms and Definitions Used
• Legislation Administered by the Ministry of Fisheries at 30 June 2002
• Ministry Directory

Ministry Performance
for the year ended 30 June 2002

Key Statistics
for the Year Ended 30 June

The statement of accounting policies and notes should be read in conjunction with these financial statements

Statement of responsibility

In terms of sections 35 and 37 of the Public Finance Act 1989, I am responsible, as the Chief Executive of the Ministry of Fisheries, for the preparation of the Ministry’s financial statements and the judgements made in the process of producing those statements.

I have the responsibility of establishing and maintaining, and I have established and maintained, a system of internal control procedures that provide reasonable assurance as to the integrity and reliability of financial reporting.

In my opinion these financial statements fairly reflect the financial position and operations of the Ministry for the year ended 30 June 2002.

Report of the Auditor-General

To the Readers of Financial Statements of the Ministry of Fisheries For the Year Ended 30 June 2002

We have audited the financial statements on pages 25 to 61. The financial statements provide information about the past financial and service performance of the Ministry of Fisheries and its financial position as at 30 June 2002. This information is stated in accordance with the accounting policies set out on pages 25 to 28.

Responsibilities of the Chief Executive

The Public Finance Act 1989 requires the Chief Executive to prepare financial statements in accordance with generally accepted accounting practice in New Zealand that fairly reflect the financial position of the Ministry of Fisheries as at 30 June 2002, the results of its operations and cash flows and service performance achievements for the year ended on that date.

Auditor’s Responsibilities

Section 15 of the Public Audit Act 2001 and section 38(1) of the Public Finance Act 1989 require the Auditor-General to audit the financial statements presented by the Chief Executive. It is the responsibility of the Auditor-General to express an independent opinion on the financial statements and report that opinion to you.

The Auditor-General has appointed Denis J Foy, of Ernst & Young, to undertake the audit.

Basis of Opinion

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing:

• the significant estimates and judgements made by the Chief Executive in the preparation of the financial statements; and
• whether the accounting policies are appropriate to the Ministry of Fisheries’ circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with the Auditing standards, published by the Auditor-General, which incorporate the Auditing Standards issued by the Institute of Chartered Accountants of New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements.

Ernst & Young has undertaken consulting assignments of an assurance nature for the Ministry of Fisheries. Other than these assignments and in our capacity as auditor acting on behalf of the Auditor-General, we have no relationship with or interests in the Ministry of Fisheries.

Unqualified Opinion

We have obtained all the information and explanations we have required.

In our opinion the financial statements of the Ministry of Fisheries on pages 25 to 61:

• comply with generally accepted accounting practice in New Zealand; and
• fairly reflect:
• the Ministry of Fisheries’s financial position as at 30 June 2002;
• the results of its operations and cash flows for the year ended on that date; and
• its service performance achievements in relation to the performance targets and other measures set out in the forecast financial statements for the year ended on that date.

Our audit was completed on 30 August 2002 and our unqualified opinion is expressed as at that date.

D J Foy
Ernst & Young
On behalf of the Auditor-General
Wellington, New Zealand

Statement of Accounting Policies

Reporting Entity

The Ministry of Fisheries is a Government Department as defined by section 2 of the Public Finance Act 1989.

These are the financial statements of the Ministry of Fisheries prepared pursuant to section 35 of the Public Finance Act 1989. In addition, the Ministry has reported trust monies which it administers.

Measurement Basis

The general accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on an historical cost basis, modified by the revaluation of certain fixed assets, have been followed.

Specific Accounting Policies

Budget Figures

The Budget figures are those presented in the Budget Night Estimates (Main Estimates) and those amended by the Supplementary Estimates and any transfers made by Order-in-Council under section 5 of the Public Finance Act 1989.

Revenue

The Ministry derives revenue through the provision of outputs to the Crown, and for services to third parties. Such revenue is recognised when earned and is reported in the financial period to which it relates.

Cost Allocation

Direct costs assigned to outputs
Costs directly attributable to an output are charged directly to the output on the following basis:

For the year ended 30 June 2002, direct costs accounted for 80% of the Ministry’s costs (2001: 81%).

Basis for assigning indirect and corporate costs to outputs
Those costs that cannot be identified to an output in an economically feasible manner are assigned on the proportion of staff time spent on that output.

For the year ended 30 June 2002 indirect costs accounted for 20% of the Ministry’s costs (June 2001: 19%).

Debtors and Receivables

Receivables are recorded at estimated realisable value, after providing for doubtful and uncollectable debts.

Operating Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease expenses are recognised on a systematic basis over the period of the lease.

Fixed Assets

Land, buildings and vessels are stated at net current value, as established by an independent valuation for the Ministry of Fisheries, with subsequent additions at cost less depreciation. For the purpose of these financial statements, land and buildings, although owned by the Crown, are deemed to be owned by the Ministry as principal occupier or user. Land, buildings and vessels are revalued on a cyclical basis. All assets within these classes are revalued, as a minimum, every five years.

All other fixed assets are stated at net book value (NBV) - i.e. cost less depreciation. Only fixed assets with a cost in excess of $5,000 are capitalised.