Annual Report 2009

• Chief Executive
• Background
• Part One – Our Strategy and Performance in 2008/09
• Part Two – Legislation and Expenditure

• Part Three – Financial Statements

• Part Four – Standards and Service Performance, Audit Report

Part Three – Financial Statements

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In this section

Statement of Responsibility

In terms of the Public Finance Act 1989, I am responsible, as Chief Executive of the Ministry for Culture and Heritage, for the preparation of the Ministry’s financial statements and statement of service performance, and for the judgments 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 designed to provide reasonable assurance as to the integrity and reliability of financial and non-financial reporting.
In my opinion, these financial statements and statement of service performance fairly reflect the financial position and operations of the Ministry for the year ended 30 June 2009.

 

Signed                                     Countersigned

Lewis Holden                          Brett Banner
Chief Executive                      Chief Financial Officer
30 September 2009                30 September 2009

 

Statement of Accounting Policies for the Year Ended 30 June 2009

Reporting Entity    

The Ministry for Culture and Heritage (the Ministry) is a government department as defined by section 2 of the Public Finance Act 1989 and is domiciled in New Zealand.
In addition, the Ministry has reported on Crown activities and trust monies which it administers.
The primary objective of the Ministry is to provide services to the public rather than making a financial return. Accordingly, the Ministry has designated itself as a public benefit entity for the purposes of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS).

Reporting Period

The financial statements of the Ministry are for the year ended 30 June 2009. The financial statements were authorised for issue by the Chief Executive of the Ministry on 30 September 2009.

Basis of Preparation

The financial statements of the Ministry have been prepared in accordance with the requirements of the Public Finance Act 1989, which includes the requirements to comply with New Zealand generally accepted accounting practices (NZ GAAP).
These financial statements have been prepared in accordance with, and comply with, NZ IFRS as appropriate for public benefit entities.
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
The financial statements have been prepared on a historical cost basis, modified by the revaluation of certain assets and liabilities as identified in this statement of accounting policies.
The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the Ministry is New Zealand dollars.
Standards, amendments and interpretations issued but not yet effective that have not been early adopted, and which are relevant to the Ministry include:

• NZ IAS 1 Presentation of Financial Statements (revised 2007) replaces NZ IAS 1 Presentation of Financial Statements (issued 2004) and is effective for reporting periods beginning on or after 1 January 2009. The revised standard requires information in financial statements to be aggregated on the basis of shared characteristics and to introduce a statement of comprehensive income. This will enable readers to analyse changes in equity resulting from transactions with the Crown in its capacity as ‘owner’ separately from ‘non-owner’ changes. The revised standard gives the Ministry the option of presenting items of income and expense and components of other comprehensive income either in a single statement of comprehensive income with subtotals, or in two separate statements (a separate income statement followed by a statement of comprehensive income). The Ministry expects it will apply the revised standard for the first time for the year ended 30 June 2010, and is yet to decide whether it will prepare a single statement of comprehensive income or a separate income statement followed by a statement of comprehensive income.
• NZ IAS 23 Borrowing Costs (revised 2007) replaces NZ IAS 23 Borrowing Costs (issued 2004) and is effective for reporting periods commencing on or after 1 January 2009. The revised standard requires all borrowing costs to be capitalised if they are directly attributable to the acquisition, construction or production of a qualifying asset. The Ministry intends to adopt this standard for the year ending 30 June 2010 and has not determined the potential impact of the new standard.

Revenue

Revenue is measured at the fair value of consideration received.

Revenue Crown
Revenue earned from the supply of outputs to the Crown is recognised as revenue when earned.

Other Revenue
Other departmental and third party revenue is predominantly derived through the undertaking of historical projects on a full cost-recovery basis and from the State Services Commission which funds the State Sector Superannuation Retirement Savings Scheme and Kiwisaver. Revenue is recognised when earned and is reported in the financial period to which it relates.

Capital Charge

The capital charge is recognised as an expense in the period to which the charge relates.

Leases
Operating Leases
An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight line basis over the lease term. The Ministry leases office premises. As the lessor retains all the risks and rewards of ownership, these leases are classified as operating leases.

Financial Instruments

The Ministry is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, debtors and creditors. Revenue and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance. All financial instruments are recognised in the Statement of Financial Position at their estimated fair value.

Cash and Cash Equivalents

Cash includes cash on hand and held in bank accounts.

Debtors and Other Receivables

Debtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest rate, less impairment changes.
Impairment of a receivable is established when there is objective evidence that the Ministry will not be able to collect amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, and default in payments are considered indicators that the debtor is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the statement of financial performance. Overdue receivables that are renegotiated are reclassified as current (i.e. not past due).

Property, Plant and Equipment

Property, plant and equipment consist of leasehold improvements, furniture and fittings and office equipment.
Property, plant and equipment are shown at cost or valuation, less accumulated depreciation and impairment losses.
Individual assets or groups of assets are capitalised if their cost is greater than $2,000 and recorded at historical cost less accumulated depreciation. The initial cost of an asset is the value of the consideration given to acquire or create the asset and any directly attributable costs of bringing the asset to working condition for its intended use, less accumulated depreciation and accumulated impairment losses. Leasehold improvement costs include significant project management and related fees.

Additions

The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Ministry and the cost of the item can be measured reliably.
In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition.

Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the statement of financial performance. When revalued assets are sold, the amounts included in the property, plant and equipment revaluation reserves in respect of those assets are transferred to general funds.

Subsequent Costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Ministry and the cost of the item can be measured reliably.

Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment, at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:

Office Furniture	5 years	20%
Personal Computers	3 years	33%
Other Computer Equipment	4 years	25%
Office Equipment	5 years	20%
Works of Art	100 years	1%

 

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated remaining useful lives of the improvements, whichever is shorter. Consequently, the depreciation rate for each asset will vary depending upon the lease period or useful life of the improvements when the work is completed.
The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.
Items under construction are not depreciated. The total cost of a capital project is transferred to the appropriate asset class on its completion and then depreciated.

Revaluation

Asset classes are carried at depreciated historical cost. The carrying values of revalued items are reviewed at each balance date to ensure that those values are not materially different to fair value. Additions between revaluations are recorded at cost.

Accounting for Revaluations

The Ministry accounts for revaluations of property, plant and equipment on a class of asset basis.
The results of revaluing are credited or debited to an asset revaluation reserve for that class of asset. Where this results in a debit balance in the asset revaluation reserve, this balance is expensed in the statement of financial performance. Any subsequent increase on revaluation that offsets a previous decrease in value recognised in the statement of financial performance will be recognised first in the statement of financial performance up to the amount previously expensed, and then credited to the revaluation reserve for that class of asset.

Intangible Assets

Software Acquisition
Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Software is capitalised if its cost is greater than $5,000.
Costs associated with maintaining computer software are recognised as an expense when incurred.
Staff training costs are recognised as an expense when incurred.

Amortisation
The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the statement of financial performance.
The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Acquired Computer Software	3 years	33%
Annual software licences	1 year	100%

 

Impairment of non-financial assets

Property, plant and equipment and intangible assets that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits or service potential.
If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. The total impairment loss is recognised in the statement of financial performance.
The reversal of an impairment loss is recognised in the statement of financial performance.

Creditors and Other Payables

Creditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.

Employee Entitlements

Short-term Employee Entitlements
Employee entitlements that the Ministry expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay.
These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date, and retiring and long service leave entitlements expected to be settled within 12 months.

The Ministry recognises a liability and an expense for bonuses where it is contractually obliged to pay them, or where there is a past practice that has created a constructive obligation.

Long-term Employee Entitlements
Entitlements that are payable beyond 12 months, such as long service leave and retiring leave have been calculated on an actuarial basis. The calculations are based on:
likely future entitlements based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement and contractual entitlements information; and
the present value of the estimated future cash flows. Discount rates of 3.01%(year 1), 3.82% (year 2), and 5.96% (year 3) and a long term salary inflation factor of 3.5% were used. The discount rate is based on the weighted average of government bonds with terms to maturity similar to those of the relevant liabilities. The inflation factor is based on the expected long-term increase in remuneration for employees.

Superannuation Schemes

Defined Contribution Schemes
Obligations for contributions to the State Sector Retirement Savings Scheme, Kiwisaver, the Government Superannuation Fund, and Global Retirement Trust Superannuation are accounted for as defined contribution schemes and are recognised as an expense in the statement of financial performance as incurred.

Taxpayers’ Funds

Taxpayers’ funds is the Crown’s investment in the Ministry and is measured as the difference between total assets and total liabilities. Taxpayers’ funds is disaggregated and classified as general funds and property, plant and equipment revaluation reserves.

Commitments

Expenses yet to be incurred on non-cancellable contracts that have been entered into on or before balance date are disclosed as commitments to the extent that there are equally unperformed obligations. Commitments relating to employment contracts are not disclosed.
Cancellable commitments that have penalty or exit costs explicit in the agreement on exercising that option to cancel are included in the statement of commitments at the value of that penalty or exit cost.

Goods and Services Tax (GST)

All items in the financial statements, including appropriation statements, are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense.
The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the statement of financial position.
The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.
Commitments and contingencies are disclosed exclusive of GST.

Income Tax 

Government Departments are exempt from income tax as public authorities. Accordingly, no charge for income tax has been provided for.

Budget Figures

The budget figures are those included in the Ministry’s Statement of Intent for the year ended 30 June 2009, which are consistent with the financial information in the Main Estimates. In addition, the financial statements also present the updated budget information from the Supplementary Estimates.

Foreign Currency

Foreign currency transactions are converted at the New Zealand dollar exchange rate at the date of the transaction.

Statement of Cost Accounting Policies

The Ministry has determined the cost of outputs using the cost allocation system outlined below.
Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities based on cost drivers and related activity/usage information.
Direct costs are those costs directly attributed to an output. Indirect costs are those costs that cannot be identified, in an economically feasible manner, with a specific output.
Direct costs are charged directly to outputs. Personnel costs are charged directly to the business unit within the output to which they belong.
For the year ended 30 June 2009, direct costs accounted for 68% of the Ministry’s costs (2008: 70%).
Indirect costs are assigned to business units based on the proportion of staff in the unit.
For the year ended 30 June 2009, indirect costs accounted for 32% of the Ministry’s costs (2008: 30%).

Changes in Accounting Policies

Accounting policies are changed only if the change is required by a standard or interpretation or otherwise provides more reliable and more relevant information.
There have been no significant changes in cost accounting policies, since the date of the last audited financial statements.

Use of Critical Accounting Estimates, Judgments and Assumptions

In preparing these financial statements the Ministry has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

 

Retirement and Long Service Leave
Note 10 provides an analysis of the exposure in relation to estimates and uncertainties surrounding retirement and long service leave liabilities.

Statement of Financial Performance for the Year Ended 30 June 2009

		2008/09	2008/09	2008/09	2007/08
	Note	Actual	Main Estimates	Supp. Estimates	Actual
		$000	$000	$000	$000
Income
Revenue Crown		14,713	15,900	14,713	15,056
Revenue other – departments	1	407	166	432	348
Revenue other – third parties	1	17	–	20	136
Total income		15,137	16,066	15,165	15,540
Expenditure
Personnel costs	2	8,452	8,215	8,642	7,899
Other operating expense	3	4,668	7,386	6,075	5,987
Depreciation and amortisation expense	4	438	380	363	318
Capital charge	5	85	85	85	91
Loss on disposal of property, plant and equipment		–	–	–	4
Total expenses		13,643	16,066	15,165	14,299
Net Surplus		1,494	–	–	1,241

 

This statement is to be read in conjunction with the accompanying Statement of Accounting Policies and Notes to the Financial Statements. For information on major budget variances refer to Note 14 in the Notes to the Financial Statements (page 57).

 

 

Statement of Financial Position as at 30 June 2009

		2008/09	2008/09	2008/09	2007/08
	Note	Actual	Main Estimates	Supp. Estimates	Actual
		$000	$000	$000	$000
Assets
Current assets
Cash and cash equivalents		3,112	1,093	1,265	1,893
Debtors and other receivables	6	241	150	240	1,258
Prepayments		33	80	75	53
Total current assets		3,386	1,323	1,580	3,204
Non-current assets
Property, plant and equipment	7	913	1,098	1,037	1,086
Intangible assets	8	17	41	0	32
Total non-current assets		930	1,139	1,037	1,118
Total Assets		4,316	2,462	2,617	4,322
Liabilities
Current liabilities
Creditors and other payables	9	1,139	845	960	1,440
Repayment of surplus to the Crown		1,494	–	–	1,241
Employee entitlements	10	458	395	395	393
Total current liabilities		3,091	1,240	1,355	3,074
Non-current liabilities
Employee entitlements	10	93	90	130	116
Total non-current liabilities		93	90	130	116
Total Liabilities		3,184	1,330	1,485	3,190
Taxpayers’ funds		1,132	1,132	1,132	1,132

 

The repayment of surplus is required to be paid by 31 October of each year.
This statement is to be read in conjunction with the accompanying Statement of Accounting Policies and Notes to the Financial Statements. For information on major budget variances refer to Note 14 in the Notes to the Financial Statements (page 57).

Signed                                       Countersigned

Lewis Holden                            Brett Banner
Chief Executive                        Chief Financial Officer
30 September 2009                  30 September 2009

Statement of Changes in Taxpayers’ Funds for the Year Ended 30 June 2009

	2008/09	2008/09	2008/09	2007/08
	Actual	Main Estimates	Supp. Estimates	Actual
	$000	$000	$000	$000
Taxpayers’ funds as at 1 July	1,132	1,132	1,132	882
Net surplus	1,494	–	–	1,241
Total recognised revenues and expenses for the year	1,494	–	–	1,241
Repayment of surplus to the Crown	(1,494)	–	–	(1,241)
Capital contribution	–	–	–	250
Taxpayers’ funds as at 30 June	1,132	1,132	1,132	1,132

 

This statement is to be read in conjunction with the accompanying Statement of Accounting Policies and Notes to the Financial Statements.

 

Statement of Cash Flows for the Year Ended 30 June 2009

	2008/09	2008/09	2008/09	2007/08
	Actual	Main Estimates	Supp. Estimates	Actual
	$000	$000	$000	$000
Cash flows from operating activities
Receipts from Crown	15,713	16,900	16,480	15,665
Receipts from revenue department/other	424	166	470	427
Payments to employees	(8,339)	(8,174)	(8,642)	(7,801)
Payments to suppliers	(4,930)	(7,427)	(7,320)	(5,263)
Goods and services tax (net)	(73)	–	87	(72)
Payments for capital charge	(85)	(85)	(85)	(91)
Net cash flows from operating activities	2,710	1,380	990	2,865
Purchase of property, plant and equipment	(207)	(350)	(314)	(501)
Purchase of intangible assets	(43)	(30)	(63)	(52)
Net cash flows from investing activities	(250)	(380)	(377)	(553)
Cash flows from financing activities
Capital contribution	–	–	–	250
Repayment of surplus	(1,241)	(735)	(1,241)	(1,176)
Net cash flows from financing activities	(1,241)	(735)	(1,241)	(926)
Net increase/(decrease) in cash held	1,219	265	(628)	1,386
Cash at beginning of year	1,893	828	1,893	507
Cash at the end of the year	3,112	1,093	1,265	1,893

 

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department.
The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

This statement is to be read in conjunction with the accompanying Statement of Accounting Policies and Notes to the Financial Statements.
For information on major budget variances refer to Note 14 in the Notes to the Financial Statements (page 57).

 

Statement of Commitments as at 30 June 2009

Non-cancellable operating lease commitments
The Ministry leases property, plant and equipment in the normal course of its business; with the main commitment relating to the premises. The Ministry occupies Level Five (1,223.3sqm), part of Level One (424sqm) and part of the Ground Floor (158sqm) in Radio New Zealand (RNZ) House.

Other non-cancellable commitments
The Ministry has entered into non-cancellable contracts for computer maintenance, cleaning services, consulting services and other contracts for service.

	2008/09	2007/08
	Actual	Actual
	$000	$000
Non-cancellable operating lease commitments:
Less than one year	457	457
One to two years	457	457
Two to five years	343	800
More than five years	–	–
Total non-cancellable operating lease commitments	1,257	1,714
Other non-cancellable commitments:
Less than one year	304	–
One to two years	–	–
Two to five years	141	–
More than five years	–	–
Total non-cancellable operating lease commitments	445	–
Total non-cancellable commitments	1,702	1,714

 

The total cost incurred in rental and leasing costs in 2008/09 is $472,000. This figure includes the cost of renting two additional car parks under non-cancellable operating lease agreements. The space allocation per person on Ministry office space at balance date is approximately 18 square meters.

This statement is to be read in conjunction with the accompanying Statement of Accounting Policies and Notes to the Financial Statements.

Statement of Contingent Liabilities and Contingent Assets as at 30 June 2009

Quantifiable contingent liabilities and assets are as follows:

	2008/09	2007/08
	Actual	Actual
	$000	$000
Departmental	–	–
Non-Departmental	–	–

 

Statement of Departmental Expenditure Against Appropriations for the Year Ended 30 June 2009

	2008/09	2008/09	2008/09	2007/08
	Expenditure Actual	Appropriation Main Estimates	Appropriation Supp. Estimates	Expenditure Actual
	$000	$000	$000	$000
Vote Arts, Culture and Heritage - Appropriations for output expenses
Heritage Services	5,805	6,352	6,038	5,605
International Cultural Diplomacy	1,520	2,089	1,880	2,030
Policy Advice and Grants Administration	6,220	7,527	7,149	6,566
Total Vote Arts, Culture and Heritage	13,545	15,968	15,067	14,201
Vote Sport and Recreation - Appropriations for output expenses
Purchase Advice and Monitoring of Sport and Recreation Crown Entities	98	98	98	98
Total Vote Sport and Recreation	98	98	98	98
Total	13,643	16,066	15,165	14,299

 

Appropriations provide each Vote Minister with the authority to spend public money or incur expenses or liabilities on behalf of the Crown.

This statement is to be read in conjunction with the accompanying Statement of Accounting Policies and Notes to the Financial Statements.

Changes to Appropriations in 2008/09 Supplementary Estimates
The Ministry’s 2008/09 departmental output appropriations were decreased by $901,000 in the 2008/09 Supplementary Estimates. A brief explanation for the changes to the three Vote Arts, Culture and Heritage departmental outputs is as follows.

Heritage Services:
This appropriation was decreased by $314,000 due to:

• a number of funding transfers from 2007/08 to 2008/09 for ongoing projects and subsequent funding transfers from 2008/09 to 2009/10;
• savings identified as part of the line by line budget review; and
• an adjustment to overhead allocation; and
• changes in departmental and third-party revenue.

International Cultural Diplomacy:
This appropriation was decreased by $209,000 due to:

• savings identified as part of the line by line budget review

Policy Advice and Grants Administration:
This appropriation was decreased by $378,000 due to:

• a number of funding transfers from 2007/08 to 2008/09 for ongoing projects and subsequent funding transfers from 2008/09 to 2009/10;
• savings identified as part of the line by line budget review; and
• an adjustment to overhead allocation; and
• changes in departmental and third-party revenue.

Statement of Unappropriated Expenditure for the Year Ended 30 June 2009

	2008/09	2008/09	2008/09	2007/08
	Actual	Main Estimates	Supp. Estimates	Unappropriated Expenditure
	$000	$000	$000	$000
Vote Arts, Culture and Heritage	–	–	–	–
Vote Sport and Recreation	–	–	–	–

 

This statement is to be read in conjunction with the accompanying Statement of Accounting Policies and Notes to the Financial Statements.

Statement of Trust Money Administered on Behalf of the Crown for the Year Ended 30 June 2009

 

The following trust money was administered on behalf of the Crown under Part VII of the Public Finance Act 1989. The statement shows the opening and closing net assets and the movements during the year.

	Opening Net Assets 2008/09	Capital Contributions	Capital Distributions (Awards)	Revenue	Expenses	Closing Net Assets 2008/09
	$000	$000	$000	$000	$000	$000
New Zealand Encyclopedia	1	–	–	–	(1)	–
New Zealand Historical Atlas	106	–	–	7	–	113
New Zealand History Research	1,448	–	(100)	123	–	1,471
Australian Trust for Oral History	1,626	–	(35)	137	(1)	1,727
Dictionary of New Zealand Biography	262	–	–	19	(78)	203
War History	515	337	–	31	(3)	880
Total	3,958	337	(135)	317	(83)	4,394

 

Under the Public Finance Act 1989 and by delegation from the Secretary to the Treasury, trust money can only be invested on deposit with New Zealand registered banks or in New Zealand Government Stock. Trust money is also managed so there is no significant concentration of credit risk. Interest rate risk is managed by investing across a wide range of maturity dates, but subject to liquidity requirements.

New Zealand Encyclopedia Trust

This trust was established to hold New Zealand Lottery Grants Board funds to be used for the feasibility study on the production of the Encyclopedia of New Zealand. The purpose for the trust has now been satisfied and consequently the trust was disestablished in 2008/09. Remaining funds ($259.63) will be returned to the Treasury in October along with the Ministry’s surplus.

New Zealand Historical Atlas Trust

This trust was established to hold New Zealand Lottery Grants Board funds, donations and royalties from sales to be used for the production of the New Zealand Historical Atlas and subsidiary volumes.
New Zealand History Research Trust
This trust was established to hold New Zealand Lottery Grants Board funds to make awards to individuals and groups for historical research and writing projects. During the 2008/09 financial year 10 awards in history were made totalling $100,000 and ranging in value from $6,000 to $12,000 (2007/08: 11 awards; $100,000; $4,000 to $25,000).

Australian Sesquicentennial Gift Trust for Awards in Oral History

This trust was established to hold funds from the Government of the Commonwealth of Australia, gifted to New Zealand in 1990 specifically to gather oral histories of importance to New Zealand. The income from these funds is used for the promotion of oral history in New Zealand. During the 2008/09 financial year ten awards in oral history were made totalling $34,500 and ranging in value from $1,500 to $35,000 (2007/08: 11 awards; $60,500; $2,000 to $12,000).

Dictionary of New Zealand Biography Trust

This trust was established to hold funds from the New Zealand Lottery Grants Board, funds from publication sales, and funds raised by private sponsorship or fundraising for the production of the Dictionary of New Zealand Biography and subsidiary volumes.

War History Trust

This trust was established to hold funds bequeathed to the Ministry for Culture and Heritage by Mr Watson, a long-time supporter of research into New Zealand’s military history. The funds and any interest income are to be used for the researching and writing of works on New Zealand’s involvement in overseas conflicts.

Notes to the Financial Statements for the Year Ended 30 June 2009

Note 1: Revenue Other
Revenue Other was derived from the following sources:

	2008/09		2007/08
	Other Government Departments $000	Other Sources $000	Other Government Departments $000	Other Sources $000
Contract history projects	175	–	102	–
Seconded staff	49	–	83	50
State Sector Retirement Savings Scheme (SSRSS) –recovery from State Services Commission	169	–	161	–
Contribution towards Digital Broadcasting Strategy project	–	–	–	60
Publication sales/royalties	–	15	–	25
Kiwisaver recoveries	13	–	–	–
Antiquities dealers’ licences	–	2	2	1
Total revenue other	406	17	348	136

 

Note 2: Personnel Costs

	2008/09	2007/08
	Actual	Actual
	$000	$000
Salaries and wages	7,869	7,305
Training and development	183	174
Employer contributions to superannuation funds*	246	218
Other personnel costs	154	202
Total personnel costs	8,452	7,899

 

* Employer contributions to defined contribution plans include contributions to the State Sector Retirement Savings Scheme, Kiwisaver, Government Superannuation Fund and the Global Retirement Trust Superannuation.

Note 3: Other Operating Expenses

	2008/09	2007/08
	Actual	Actual
	$000	$000
Administration costs	1,782	2,582
Rental and leasing costs	472	476
Other occupancy costs	214	237
Publicity and research	194	248
Information communication technology	741	725
Transfers to International Cultural Diplomacy Programme agencies	1,223	1,675
Audit fees for financial statement audit (Audit New Zealand)	42	38
Audit fees for NZ IFRS transition (Audit New Zealand)	–	6
Total operating costs	4,668	5,987

 

Note 4: Depreciation and Amortisation

	2008/09	2007/08
	Actual	Actual
	$000	$000
Depreciation – Property, Plant and Equipment
Computer equipment	93	83
Office equipment	19	21
Office furniture	52	17
Leasehold improvements	216	143
Works of Art	–	–
Amortisation – Intangible Assets
Computer software	58	54
Total depreciation and amortisation	438	318

 

 

Note 5: Capital Charge
The Ministry pays a capital charge to the Crown on its taxpayers’ funds as at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2009 was 7.5% (2008: 7.5%).

Note 6: Debtors and Other Receivables

	2008/09	2007/08
	Actual	Actual
	$000	$000
Debtor Crown	–	1,000
Trade debtors	181	258
GST receivables	60	–
Total debtors and other receivables	241	1,258

 

The carrying value of debtors and other receivables approximates their fair value.

As at 30 June 2009 all overdue trade debtors have been assessed for impairment as detailed below (a provision is not required):

	2008			2009
	Gross	Impairment	Net	Gross	Impairment	Net
	$000	$000	$000	$000	$000	$000
Not past due	241	–	241	181	–	181
Past due 1–30 days	–	–	–	–	–	–
Past due 31–60 days	–	–	–	–	–	–
Past due 61–90 days	–	–	–	–	–	–
Past due > 91 days	17	–	17	–	–	–
Total	258	–	258	181	–	181

 

A provision for doubtful debts has not been calculated. No losses are expected for the Ministry’s pool of debtors.

 

Note 7: Property, Plant and Equipment

	Computer Equipment	Office Equipment		Office Furniture	Leasehold Improvements	Works of Art	Total
	$000	$000	$000		$000	$000	$000
Cost or Valuation
Balance at 1 July 2007	562	170	365		1,084	20	2,201
Additions	83	16	173		229	–	501
Disposals	(25)	(18)	(158)		–	–	(201)
Other asset adjustment (rounding)	–	(1)	–		–	–	(1)
Balance at 30 June and 1 July 2008	620	167	380		1,313	20	2,500
Additions	90	14	29		71	–	204
Disposals	(29)	(17)	–		–	–	(46)
Other asset adjustment (rounding)	–	1	–		1	1	3
Balance at 30 June 2009	681	165	409		1,385	21	2,661
Accumulated Depreciation and Impairment Losses
Balance at 1 July 2007	414	110	301		523	–	1,348
Depreciation expense	83	21	17		143	–	264
Elimination on disposal	(25)	(17)	(156)		–	–	(198)
Impairment losses	–	–	–		–	–	–
Balance at 30 June and 1 July 2008	472	114	162		666	–	1,414
Depreciation expense	93	19	52		216	–	380
Elimination on disposal	(29)	(17)	–		–	–	(46)
Impairment losses	–	–	–		–	–	–
Balance at 30 June 2009	536	116	214		882	–	1,748
Carrying Amounts
At 1 July 2007	148	60	64		561	20	853
At 30 June and 1 July 2008	148	53	218		647	20	1,086

 

Note 8: Intangible Assets

	Acquired Software
	$000
Cost or Valuation
Balance at 1 July 2007	280
Additions	52
Disposals	(167)
Other asset adjustment (rounding)	(1)
Balance at 30 June and 1 July 2008	164
Additions	43
Disposals	–
Balance at 30 June 2009	207
Accumulated Amortisation and Impairment Losses
Balance at 1 July 2007	245
Depreciation expense	54
Elimination on disposal	(167)
Impairment losses	–
Balance at 30 June and 1 July 2008	132
Amortisation expense	58
Elimination on disposal	–
Impairment losses	–
Balance at 30 June 2009	190
Carrying Amounts
At 1 July 2007	35
At 30 June and 1 July 2008	32
At 30 June 2009	17

There are no restrictions over the title of the Ministry’s intangible assets, nor are any intangible assets pledged as security for liabilities.

Note 9: Creditors and Other Payables

	2008/09	2007/08
	Actual	Actual
	$000	$000
Trade creditors	213	943
PAYE payable	88	87
GST payable	-	13
Accrued expenses	838	397
Total creditors and payables	1,139	1,440

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.

Note 10: Employee Entitlements

	2008/09	2007/08
	Actual	Actual
	$000	$000
Current employee entitlements are represented by:
Annual leave	385	341
Long-service leave	73	52
Total current portion	458	393
Non-current employee entitlements are represented by:
Long-service leave	39	22
Retirement leave	54	94
Total non-current portion	93	116
Total employee entitlements	551	509

The present value of the retirement and long service leave obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liability are the discount rate and the salary inflation factor. Any changes in these assumptions will impact on the carrying amount of the liability.
In determining the appropriate discount rate the Ministry considered the interest rates on NZ Government Bonds which have terms to maturity that match, as closely as possible, the estimated future cash outflows. The salary inflation factor has been determined after considering historical salary inflation patterns and after obtaining advice from an independent actuary.
If the discount rate were to differ by 1% from the Ministry’s estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $4,000 higher/lower.
If the salary inflation factor were to differ by 1% from the Ministry’s estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $4,000 higher/lower.

Note 11: Reconciliation of Net Surplus to Net Cash Flow from Operating Activities for the Year Ended 30 June 2009

	2008/09	2007/08
	Actual	Actual
	$000	$000
Net surplus/(deficit)	1,494	1,241
Add/(less) non-cash items:
Depreciation and amortisation	438	318
Inc/(decrease) in non-current employee entitlements	(23)	26
Total non-cash items	415	344
Add/(less) items classified as investing or financing activities:
(Gains)/losses on disposal of property, plant and equipment	–	4
Add/(less) movements in working capital items:
(Inc)/decrease in debtors and other receivables	1,017	552
(Inc)/decrease in prepayments	20	37
Inc/(decrease) in creditors and other payables	(301)	655
Inc/(decrease) in current employee entitlements	65	32
Net movements in working capital items	801	1,276
Net cash flows from operating activities	2,710	2,865

This statement is to be read in conjunction with the accompanying Statement of Accounting Policies and Notes to the Financial Statements.

Note 12: Financial Instruments
The Ministry’s activities expose it to a variety of financial instrument risks, including credit risk, currency risk, interest rate risk and liquidity rate risk. The Ministry has a series of policies to manage the risks associated with financial instruments and seeks to minimise exposure from financial instruments. These policies do not allow any transactions that are speculative in nature to be entered into.

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 trade debtors and transactions with financial institutions.
The Ministry does not require any collateral or security to support financial instruments with financial institutions that 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.

Currency Risk
Currency risk is the risk that debtors and creditors due in foreign currency will fluctuate because of changes in foreign exchange rates. Owing to the nature and limited number of foreign exchange transactions undertaken, the Ministry has no significant exposure to currency risk.

Interest Rate Risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. This could impact on the return on investments or the cost of borrowing. The Ministry has no significant exposure to interest rate risk on its financial instruments.
Under section 46 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 for funds borrowed (30 June 2008: Nil).

Liquidity risk

Liquidity risk is the risk that the Ministry will encounter difficulty raising liquid funds to meet commitments as they fall due.
In meeting its liquidity requirements, the Ministry closely monitors its forecast cash requirements with expected cash drawdown’s from the New Zealand Debt Management Office. The Ministry maintains a target level of available cash to meet liquidity requirements.
The Ministry’s financial liabilities will be settled in less than six months. The amounts disclosed are the contractual undiscounted cash flows.

Note 13: 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 entities and state-owned enterprises on an arm’s length basis. Those transactions that occur within a normal supplier or client relationship on terms and conditions no more or less favourable than those which it is reasonable to expect the Ministry would have adopted if dealing with that entity at arm’s length in the same circumstance are not disclosed.
There were two close family members of the senior management team employed briefly by the Ministry during the year at a combined cost of $5,500. The terms and conditions of their employment were no more favourable than the Ministry would have implemented in any other circumstances.
No provision has been required, nor any expense recognised, for impairment of receivables from related parties.

Note 14: Variance Explanations
Explanations for major variances from the Ministry’s estimated figures in the Statement of Intent are as follows.
Statement of Financial Performance

Personnel costs

Personnel costs are $278,000 higher than budgeted due to higher than expected increases in remuneration (than at the time of preparing the 2008/09 main estimates).

Operating costs
Operating costs are $2.759 million lower than budgeted in the Statement of Intent mainly due to timing differences for various projects which span a number of financial years, and savings returned as part of the line by line budget review. Approval in-principle was obtained to carry forward unspent operating funding in the 2008/9 financial year to 2009/10 for:

• First World War Centenary Project $20,000
• NZLive.com $230,000
• Public Education Initiative and the Monitoring of Digital TV Take-up $80,000
• Vietnam War Oral History Project $70,000

The above in-principle expense transfers total $400,000 and account for some of the variance between the 2008/09 total expenses (Actual) and total revenue (Supplementary Estimates) recognised in the Statement of Financial Performance. The actual amount of expense transfers is restricted to the amount of unspent appropriation available under the outputs to which the above activities relate (refer Statement of Departmental Expenditure Against Appropriations).
The Ministry returned a total of $730,000 as part of the line by line budget review, and this is the other significant factor reducing total revenue. During 2008/09 a total of $1.6 million was expense transferred from 2008/09 to 2009/10. The projects are as follows:

• NZLive.com $300,000
• Various Departmental projects $1,300,000

The $1.494 million operating surplus was primarily generated from the timing differences mentioned above. This surplus will be returned to the Crown as required under the Public Finance Act 1989.

Statements of Financial Position and Cash Flows

Debtors and Other Receivables
Debtors and other receivables are $91,000 higher than budgeted mainly due to the $60,000 balance for GST, which arose because of the May 2009 revenue Crown drawn downs from the NZDMO.

Creditors and Payables
Creditors and other payables are $294,000 higher than budgeted due to creditors submitting final invoices for work that was not finalised until late June 2009. In particular a significant invoice associated with the Ministry’s International Cultural Diplomacy Programme. When preparing the budget figures for the Statement of Intent it was envisaged that this project would be completed well before June 2009. The increase in total employee entitlements is mainly due to an increase in untaken annual leave, and milestone anniversaries being reached by some of the employees who are entitled to retirement leave.

Property, Plant and Equipment
Capital expenditure is $209,000 lower than budgeted due to expenditure on computer equipment. The Ministry revised it’s computer equipment plans during 2008/09, and this expenditure will now occur during 2009/10.

Working Capital                       
The Ministry’s working capital position in 2008/09 ($295,000) improved by $165,000 compared to 2007/08 ($130,000). Contributing factors include: capital expenditure was only $208,000 in 2008/09, and the residual capital expenditure was less than the depreciation and amortisation expense incurred.

Statement of Cash Flows

Cash outflows for payments to suppliers was less than budgeted due to the timing differences and late submission of invoices mentioned above, and the expense and in principle expense transfers previously mentioned.

Note 15: Key Management Personnel Compensation

Total Remuneration	30 June 2009	30 June 2008
Salaries and other short-term employee benefits	1,390	1,461
Post-employment benefits	–	–
Other long-term benefits	2	30
Termination benefits	–	–
Total key management personnel compensation	1,392	1,491

 

Key management personnel include the Chief Executive and the nine senior managers
(2008: the Chief Executive and nine senior managers).

Note 16: Post Balance Date Events
There are no significant post balance date events to report (2008: nil).

Non-departmental Schedules and Statements:

Vote Arts, Culture and Heritage and Vote Sport and Recreation for the Year Ended 30 June 2009

Reporting Entity

These non-departmental schedules and statements present financial information on public funds managed by the Ministry on behalf of the Crown.
These non-departmental balances are consolidated into the Financial Statements of the Government. For a full understanding of the Crown’s financial position, results of operations and cash flows for the year, reference should also be made to the Financial Statements of the Government for the year ended 30 June 2009.

Statement of Accounting Policies: Non-Departmental

The non-departmental schedules and statements have been prepared in accordance with the Government’s accounting policies as set out in the Financial Statements of the Government, and in accordance with relevant Treasury Instructions and Treasury Circulars.
Measurement and recognition rules applied in the preparation of these non-departmental schedules and statements are consistent with New Zealand generally accepted accounting practice, as appropriate for public benefit entities.
The accounting policies set out below have been applied consistently to all periods presented in these financial statements. The following particular accounting policies have been applied:

Budget Figures

The budget figures are those included in the Ministry’s Statement of Intent for the year ended 30 June 2009, which are consistent with the financial information in the Main Estimates. In addition, these financial statements also present the updated budget information from the Supplementary Estimates.

Foreign Exchange

Foreign currency transactions are translated into New Zealand dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the schedule of non-departmental income or expenses.
The Crown uses a foreign exchange forward contract to manage a foreign exchange exposure. The notional principal amount outstanding at balance date on the hedged purchase commitment with respect to the annual payment made to the Commonwealth War Graves Commission to maintain overseas war graves and memorials was $2.883 million (30 June 2008: 2.643 million).

Revenue

Revenue from fines and other receipts are recognised when received.

Grant Expenditure

Non-discretionary grants are those grants awarded if the grant application meets the specified criteria and are recognised as expenditure when an application that meets the specified criteria for the grant has been received.
Discretionary grants are those grants where the Ministry has no obligation to award on receipt of the grant application and are recognised as expenditure when approved by the grants approvals committee and the approval has been communicated to the applicant.

Goods and Services Tax

All items in the financial statements, including appropriation statements, are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. In accordance with Treasury instructions, GST is returned on revenue received on behalf of the Crown, where applicable. However, an input tax deduction is not claimed on non-departmental expenditure. Instead, the amount of GST applicable to non-departmental expenditure is recognised as a separate expense and eliminated against GST revenue on consolidation of the government’s financial statements.

Property, Plant and Equipment

Property, plant and equipment assets comprise the National War Memorial and the Massey War Memorial, administered on behalf of the Crown. These assets are carried at fair value less subsequent impairment losses and, for non-land assets, less subsequent accumulated depreciation. These assets are revalued at least every three years. In the intervening period between the scheduled revaluations if it is established that the memorial’s carrying value may be materially different from its fair value a revaluation will be sought.
Depreciation is charged on a straight-line basis at rates calculated to allocate the cost or valuation of an item of property, plant and equipment, less any estimated residual value, over its estimated useful life, as follows:

Buildings

2%

 

Schedule of Non-departmental Revenue and Receipts for the Year Ended 30 June 2009

The schedule of revenue and receipts summarises non-departmental revenue that the Ministry collects on behalf of the Crown.

	2008/09	2008/09	2007/08
	Actual	Forecast*	Actual
	$000	$000	$000
Vote Arts, Culture and Heritage
Broadcasting Standards Authority – fines	14	13	24
London Memorial – return of funds	196	–	–
Total Arts, Culture and Heritage	210	13	24
Vote Sport and Recreation
SPARC – Return of funds held on behalf of the Crown – Prime Minister’s Sport Scholarships	–	–	6,490
Total Sport and Recreation	–	–	6,490
Total non-departmental revenue and receipts	210	13	6,514

 

These schedules are to be read in conjunction with the accompanying Statement of Accounting Polices.
For a full understanding of the Crown’s financial position and the results of its operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2009.
* This includes adjustments made in the Supplementary Estimates.

Schedule of Non-departmental Expenses for the Year Ended 30 June 2009

The schedule of expenses summarises non-departmental expenses that the Ministry administers on behalf of the Crown.

Further details are provided in the Statement of Non-departmental Expenditure and Appropriations on page 57.

	2008/09	2008/09	2007/08
	Expenditure	Appropriation	Expenditure
	Actual	Voted *	Actual
	$000	$000	$000
Grants, subsidy and benefit expenses	33,839	34,129	12,282
Other operating expenses	304,232	307,019	302,876
Depreciation – buildings	185	185	185
GST input expense	42,020	42,836	38,460
Total non-departmental expenditure	380,276	384,156	353,803

These schedules are to be read in conjunction with the accompanying Statement of Accounting Polices.
For a full understanding of the Crown’s financial position and the results of its operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2009.
* This includes adjustments made in the Supplementary Estimates.

 

Statement of Non-departmental Expenditure and Capital Expenditure against Appropriations for the Year Ended 30 June 2009

The Statement of Non-departmental Expenditure and Appropriations details expenditure incurred against each appropriation administered by the Ministry on behalf of the Crown.

	2008/09	2008/09	2007/08
	Expenditure	Appropriation	Expenditure
	Actual	Voted *	Actual
	$000	$000	$000
Vote Arts, Culture and Heritage
Appropriation for non-departmental output expenses
Management of Historic Places	12,514	12,514	10,859
Museum Services	24,644	24,644	21,744
Performing Arts Services	19,606	19,606	18,283
Promotion and Support of the Arts and Film	19,548	19,548	25,563
Protection of Taonga Tūturu	115	116	79
Public Broadcasting Services	151,534	151,534	156,919
Total appropriations for output expenses	227,961	227,962	233,447

	2008/09	2008/09	2007/08
	Expenditure	Appropriation	Expenditure
	Actual	Voted *	Actual
	$000	$000	$000
Stabilisation of the Nurses’ Hostel at Hamner Springs	–	1,500	–
Gallipoli Memorial Projects	–	–	–
Kerikeri Heritage Bypass	287	588	2,556
Regional Museums	29,547	29,547	7,989
Treaty of Waitangi Commemorations	287	288	288
Total appropriations for other expenses to be incurred by the Crown	33,008	34,813	13,992
Appropriation for capital expenditure
Museum of New Zealand Te Papa Tongarewa	10,000	10,000	10,000
New Zealand Historic Places Trust	500	500	2,000
New Zealand Film Commission	–	–	946
Radio New Zealand	–	–	521
National War Memorial	28	160	–
Total appropriations for capital expenditure	10,528	10,660	13,467
Total Vote Arts, Culture and Heritage	271,497	273,435	260,906
Vote Sport and Recreation
Appropriation for non-departmental output expenses
Sports Anti-Doping	2,085	2,085	1,691
Sport, Fitness and Leisure Programmes	53,177	53,177	52,288
Children and Young People’s Lifestyles	15,733	15,733	9,632
Total appropriations for output expenses	70,995	70,995	63,611
Appropriation for benefits and other unrequited expenses
Sport Education Scholarships	4,250	4,250	4,250
Total appropriations for benefits and other unrequited expenses	4,250	4,250	4,250
Appropriation for other expenses to be incurred by the Crown
Miscellaneous Grants	42	44	43
Total appropriations for other expenses to be incurred by the Crown	42	44	43
Total Vote Sport and Recreation	75,287	75,289	67,904

This statement is to be read in conjunction with the accompanying Statement of Accounting Policies.
For a full understanding of the Crown’s financial position and the results of its operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2009.
* This includes adjustments made in the Supplementary Estimates.

Details of Multi-Year Appropriation (MYA) for the Year Ended 30 June 2009

Appropriation	2008/09
	$000
New Zealand Screen Production Incentive Fund Multi-Year Appropriation	68,500
Commencement Date	July 2008
Expiry Date	June 2013
Opening Balance	–
Actual Expenditure 2008/09	2,000
Total Accumulated Expenditure	2,000
Appropriation Remaining	66,500

Explanation of major budget variances

Explanations for major variances from the Ministry’s non-departmental estimated figures in the Main Estimates are as follows:

Schedule of Non-departmental Revenue and Receipts

• $196,000 was returned to the Crown for unspent funding associated with the London Memorial project. It was anticipated this funding would be required for warranty and completion during 208/09. However, the expenditure did not eventuate.

Schedule of Non-departmental expenditure and capital expenditure against appropriations

• Approval was obtained in-principle to carry forward to 2009/10 the remaining $301,000 towards the construction of the Kerikeri Heritage Bypass, to protect the nationally significant heritage buildings Kemp House and the Stone Store. Delays have occurred during the consultation and consent processes and the construction of the footbridge is whether dependant.
• The National War Memorial was $132,000 underspent due to unanticipated delays late in the 2008/09 financial year. The remaining capital work will now be completed during 2009/10.
• Stabilisation of the Heritage Nurses’ Hostel at Hamner Springs was $1.5million underspent and will now be spent in 2009/10 on earthquake strengthening and stabilization of the heritage buildings.
• This statement is to be read in conjunction with the accompanying Statement of Accounting Policies.
• For a full understanding of the Crown’s financial position and the results of its operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2009.

Schedule of Recipients of Non-departmental Outputs Funding for the Year Ended 30 June 2009

Recipient	$000
Vote Arts, Culture and Heritage
Management of Historic Places
Antarctic Heritage Trust	526
New Zealand Historic Places Trust	11,988
	12,514
Museum Services
Museum of New Zealand Te Papa Tongarewa	23,574
New Zealand Film Archive	1,070
	24,644

Recipient	$000
Performing Arts Services
New Zealand Symphony Orchestra	13,446
Royal New Zealand Ballet	3,534
Aotearoa Traditional Māori Performing Arts Society	1,248
New Zealand Music Commission	1,378
	19,606
Promotion and Support of the Arts and Film
Arts Council of New Zealand Toi Aotearoa (Creative New Zealand)	15,937
New Zealand Film Commission	3,611
	19,548
Protection of Taonga Tūturu
Museums and conservation service providers	115
	115
Public Broadcasting Services
Broadcasting Commission (NZ On Air)	127,568
Television New Zealand	13,757
National Pacific Radio Trust	2,700
Radio New Zealand International	1,900
Broadcasting Standards Authority	609
Freeview	5,000
	151,534
Total Vote Arts Culture and Heritage	227,961
Vote Sport and Recreation
Sports Anti-Doping
Drug Free Sport New Zealand	2,085
	2,085
Sport, Fitness and Leisure Programmes
Sport and Recreation New Zealand	53,177
	53,177
Children and Young People’s Lifestyles
Sport and Recreation New Zealand	15,733
	15,733
Total Vote Sport and Recreation	70,995

This schedule is to be read in conjunction with the accompanying Statement of Accounting Policies.
For a full understanding of the Crown’s financial position and the results of its operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2009.

Schedule of Non-departmental Assets as at 30 June 2009

	2008/09	2008/09	2007/08
	Actual	Forecast	Actual
	$000	$000	$000
Assets
Current assets
Cash at bank and at hand	5,254	5,072	2,304
Total current assets	5,254	5,072	2,304
Non-current assets
Property, plant and equipment:
Land
– Massey Memorial (at valuation 30 June 2009)	550	580	580
– National War Memorial (at valuation 30 June 2009)	5,530	5,300	5,300
– New Zealand Memorial Park (at cost)	4,967	4,967	4,967
Total land	11,047	10,847	10,847
Buildings
– Massey Memorial (at valuation 30 June 2009)	1,250	980	980
Accumulated depreciation	–	(60)	(40)
– National War Memorial (at valuation 30 June 2009)	8,530	8,440	8,280
Accumulated depreciation	–	(495)	(330)
Buildings carrying value	9,780	8,865	8,890
Total non-current assets	20,827	19,712	19,737
Total assets	26,081	24,784	22,041

 

The following points should be noted in addition to the above asset disclosures:

• In addition the Ministry monitors a number of Crown Entities. The investment in those entities is recorded within the financial statements of the Government on a line-by-line basis. No disclosure is made in this schedule.
• The National War Memorial and Massey War Memorial were revalued as at 30 June 2009. This revaluation resulted in an increment to the buildings revaluation reserve of $250,000 for the National War Memorial and $270,000 for the Massey Memorial, and an increment to the land revaluation reserve of $230,000 for the National War Memorial and $30,000 decrease for the Massey Memorial. The valuation was completed by Beca Valuations (independent valuer) using market-based evidence (land) and depreciated replacement cost (buildings) in accordance with accounting standard IAS 16. Both Memorials will be revalued to fair value as at 30 June 2012. Balance of revaluation reserve at 30 June 2009 for land ($4.770million) and buildings ($1.675million). Buildings are depreciated at 2% per annum on a straight-line basis.

This schedule is to be read in conjunction with the accompanying Statement of Accounting Policies.

Schedule of Non-departmental Liabilities as at 30 June 2009

	2008/09	2008/09	2007/08
	Actual	Forecast	Actual
	$000	$000	$000
Current Liabilities
Creditors and other payables	172	950	1,023
Total liabilities	172	950	1,023

 

This schedule is to be read in conjunction with the accompanying Statement of Accounting Policies.

 

Schedule of Non-departmental Commitments as at 30 June 2009

The schedule sets out the level of commitment made against out-year appropriations and funding baselines for Non-departmental expenditure. These commitments are established through formalised agreements.

	2008/09	2007/08
	Actual	Actual
	$000	$000
Non-cancellable operating commitments:
Less than one year	154,063	168,567
One to two years	–	–
Two to five years	–	–
More than five years	–	–
Total non-cancellable operating commitments	159,063	168,567
Non-cancellable capital commitments:
Less than one year	9,000	500
One to two years	–	–
Two to five years	–	–
More than five years	–	–
Total non-cancellable capital commitments	9,000	500
Total Non-departmental commitments	168,063	169,067

The 2007/08 Crown commitments were not disclosed in last year’s Annual Report, but have been included in the above table for comparative purposes.

Schedule of Non-departmental Contingent Liabilities and Contingent Assets as at 30 June 2009

The Ministry on behalf of the Crown has no contingent liabilities or contingent assets (2008: nil).

This schedule is to be read in conjunction with the accompanying Statement of Accounting Policies.
For a full understanding of the Crown’s financial position and the results of its operations for the period, reference should be made to the consolidated Financial Statements of the Government for the year ended 30 June 2009.

 

Page last updated: November 3, 2009

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