Report of the Ministry for the Environment

1 Overview

2 Statement of Service Performance for the Year Ended 30 June 2008

3 Financial Statements for the Ministry for the Environment

4 Non-Departmental Statement and Schedules for the Year Ended 30 June 2008

5 Strengthening our Capability

6 Development Goals for the State Services

7 Environmental Report

8 Management of the Ministry

9 Contact Information

4. Non-Departmental Statement and Schedules for the Year Ended 30 June 2008

The following non-departmental statements and schedules record the income, expenses, assets and liabilities the Ministry manages on behalf of the Crown. The Ministry for the Environment administered approximately $283 million of non-departmental payments, $369 million of non-departmental revenue and receipts, $31 million of assets, and $574 million of liabilities on behalf of the Crown for the year ended 30 June 2008.

Statement of Non-Departmental Expenditure and Capital Expenditure Against Appropriations for the Year Ended 30 June 2008⁸

Actual 30/06/2007 $000		Actual 30/06/2008 $000	Appropriation* 30/06/2008 $000
	Vote: Environment
	Appropriations for non-departmental output classes
3,132	Clean up of orphan Crown contaminated sites	2,657	3,278
3,738	Development and implementation of sustainable management	2,893	3,294
9,397	Hazardous substances and new organisms assessment and management	9,012	9,012
400	Sustainable land management: promotion and training	400	400
16,667	Subtotal	14,962	15,984
	Appropriations for other expenses to be incurred by the Crown
0	Recycling in Public Places	500	500
(6)	Montreal Protocol on Ozone Protection	0	0
9	Subscription to Basel Convention	0	0
333	United Nations Environment Programme	208	216
1,270	Legal and Environment Centre Grants	923	1,128
24	International subscriptions	59	117
0	Warm Home Grants and Assistance	873	1,100
1,630	Subtotal	2,563	3,061
18,297	Total for Vote: Environment	17,525	19,045
	Vote: Climate Change and Energy Efficiency
	Appropriations for non-departmental output classes
15,515	Energy Efficiency and Conservation Authority	20,582	20,582
15,515	Subtotal	20,582	20,582
	Appropriations for other expenses to be incurred by the Crown
5,740	Energy efficiency and renewable energy grants and assistance	10,100	15,476
93	Framework Convention on Climate Change	93	102
48,440	Kyoto Protocol liability	226,088	-
299	Contribution to Climate Change Development Fund	300	300
54,572	Subtotal	236,581	15,878
	Capital investment in organisations other than departments
1,221	Crown Energy Efficiency	2,000	2,000
1,221	Subtotal	2,000	2,000
71,308	Total for Vote: Climate Change and Energy Efficiency	259,163	38,460

* This includes adjustments made in the Supplementary Estimates and transfers under the Public Finance Act 1989.

The movement in the Kyoto Protocol liability reflects a re-measurement in the provision for the Crown’s liability under the Kyoto Protocol. The re-measurement in the provision takes account of the revision in the price for Kyoto-compliant emission units, the re-estimation of the net emission position, and movements in the EURO/NZ exchange rate.

In accordance with Section 4(2)(a) of Part One of the Public Finance Amendment Act 2004, changes in assets and liabilities due to re-measurement do not require appropriations.⁹

Statement of Non-Departmental Expenditure and Capital Expenditure Against Appropriations
for the Year Ended 30 June 2008 (continued) ¹⁰

Details of multi-year appropriations

The Ministry has a multi-year appropriation for Non-Departmental output expenses for the provision of grants to assist regional councils and unitary authorities in aquaculture planning. This appropriation began on 1 July 2006 and expires on 30 June 2011.

	Actual 2008 $000	Actual 2007 $000
Vote: Environment
Appropriation: Contestable Aquaculture Planning Fund
Original appropriations	2,000	2,000
Cumulative adjustments	0	0
Total appropriations	2,000	2,000
Opening cumulative actual	0	0
Current year supplementary estimates	500	0
Current year spend	388	0
Closing cumulative actual	388	0
Unspent	1,612	2,000

Details of indemnity payments

The Ministry has a liability on behalf of the Crown for the indemnity payments in relation to the Projects to Reduce Emissions and this is authorised under section 65ZG of the Public Finance Act 1989.

Actual 30/06/2007 $000		Actual 30/06/2008 $000	Appropriation 30/06/2008 $000
	Vote: Climate Change and Energy Efficiency
	Appropriations for non-departmental output classes
0	Indemnity payments	210	N/A
0	Total for indemnity payments	210	N/A

Statement of Non-Departmental Unappropriated Expenditure and Capital Expenditure
for the Year Ended 30 June 2008¹¹

Unappropriated expenditure 2007 $000		Expenditure after remeasurements 2008 $000	Appropriation Voted 2008 $000	Unappropriated expenditure 2008 $000
0	Vote: Environment			Nil
0	Vote: Climate Change and Energy Efficiency			Nil
0	Total			0

 

There has been no unappropriated expenditure for the year ended 30 June 2008 (2007: nil). The difference in Vote: Climate Change and Energy Efficiency represents a remeasurement of the Kyoto Protocol Liability.

Schedule of Non-Departmental Income
for the Year Ended 30 June 2008

Actual 30/06/2007 $000		Actual 30/06/2008 $000	Main estimates 30/06/2008 $000	Supplementary forecast 30/06/2008 $000
	Vote: Environment
	Income
727	Coastal royalties	676	400	400
727	Total non-departmental income: Vote: Environment	676	400	400
	Vote: Climate Change and Energy Efficiency
	Income
0	Revision in Carbon Units	368,103	0	368,103
0	Total non-departmental income: Vote: Climate Change and Energy Efficiency	368,103	0	368,103

Explanations of significant variances against budget are detailed in note 6.

Schedule of Non-Departmental Capital Receipts for the Year ended 30 June 2008¹²

Actual 30/06/2007 $000		Actual 30/06/2008 $000	Main estimates 30/06/2008 $000	Supplementary forecast 30/06/2008 $000
	Capital receipts
643	Catchment Works Loans – principal	642	642	642
1,254	Crown Energy Efficiency Loans	1,377	1,749	1,749
1,897	Total non-departmental capital receipts	2,019	2,391	2,391

¹² Explanations of significant variances against budget are detailed in note 6.

Schedule of Non-Departmental Expenses
for the Year ended 30 June 2008

Actual 30/06/2007 $000		Actual 30/06/2008 $000	Main estimates 30/06/2008 $000	Supplementary forecast 30/06/2008 $000
	Vote: Environment
16,667	Non-departmental output classes	14,962	20,284	15,984
1,630	Other expenses to be incurred by the Crown	2,563	2,781	3,061
0	Other non-departmental multi-year output class	388	0	500
2,131	GST input tax credit expense	2,131	2,827	2,252
20,428	Total non-departmental expenses: Vote: Environment	20,044	25,892	21,797
	Vote: Climate Change and Energy Efficiency
15,515	Non-departmental output classes	20,582	17,322	20,582
54,572	Other expenses to be incurred by the Crown	236,581	9,178	15,878
0	Indemnity liability payments	210	N/A	N/A
2,963	GST input tax credit expense	3,573	3,262	4,507
1,221	Capital investment in organisations other than departments	2,000	2,000	2,000
74,271	Total non-departmental expenses: Vote: Climate Change and Energy Efficiency	262,946	31,762	42,967

Explanations of significant variances against budget are detailed in note 6.

Schedule of Non-Departmental Assets
as at 30 June 2008¹³

The schedule of assets summarises the assets that the Ministry administers on behalf of the Crown.

Actual 30/06/2007 $000		Notes	Actual 30/06/2008 $000	Main estimates 30/06/2008 $000	Supplementary forecast 30/06/2008 $000
	Assets
	Current assets
14,740	Cash and cash equivalents		20,572	14,093	15,952
2,172	Debtors and other receivables	2	1,392	688	0
16,912	Total current assets		21,964	14,781	15,952
	Non-current assets
2,734	Debtors and other receivables	2	2,507	4,104	3,783
6,813	Crown land		6,813	6,813	6,813
9,547	Total non-current assets		9,320	10,917	10,596
26,459	Total non-departmental assets		31,284	25,698	26,548

In addition, the Ministry monitors two Crown entities. These are the Environmental Risk Management Authority and Energy Efficiency and Conservation Authority. 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.

Schedule of Non-Departmental Liabilities
as at 30 June 2008

The schedule of liabilities summarises the liabilities the Ministry administers on behalf of the Crown.

Actual 30/06/2007 $000		Notes	Actual 30/06/2008 $000	Main estimates 30/06/2008 $000	Supplementary forecast 30/06/2008 $000
	Liabilities
7,150	Creditors and other payables	3	11,252	8,200	8,200
0	Provision for indemnity payment		210	N/A	N/A
704,188	Kyoto Protocol provision	4	562,173	578,130	481,560
711,338	Total non-departmental liabilities		573,635	586,330	489,760

Statement of Non-Departmental Commitments
as at 30 June 2008¹⁴

The schedule sets out the level of commitments made against out-year appropriations and funding baseline for non-departmental expenditure. The Ministry has entered into non-cancellable deeds of funding that it administers on behalf of the Crown.

	30/06/2008 $000	30/06/2007 $000
Non-cancellable deeds (GST exclusive)
Not later than one year	4,877	0
Later than one year but not later than five years	2,721	0
Later than five years	0	0
Total non-cancellable deeds	7,598	0

Statement of Non-Departmental Contingencies
as at 30 June 2008

Contingent Liabilities

Guarantees and indemnities

The Ministry has a liability on behalf of the Crown for the indemnity payments as authorised under section 65ZG of the Public Finance Act 1989 for the Projects to Reduce Emissions (second) Agreement. However, the contingency for the indemnity payment is not able to be quantified as at 30 June 2008 (2007: nil).

Other unquantifiable contingent liabilities

Environment liabilities

Under common law and various statutes, the Crown may have responsibility to remedy adverse effects on the environment arising from Crown activities.

Departments managing significant Crown properties have implemented systems to identify, monitor and assess potential contaminated sites.

In accordance with IAS 37: Provisions, Contingent Liabilities any contaminated sites for which costs can be reliably measured have been included in the Schedule of Non-Departmental Liabilities.

Contingent Assets

The Ministry on behalf of the Crown has one contingent asset in respect of the Mapua contaminated site clean up project. The amount owed to the Crown is potentially around $2.5m and has not been included in the Schedule of Non-Departmental Assets. (2007: Nil).

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