Introduction
These forecast financial statements for the Ministry for the Environment contain the following statements pursuant to section 34A of the Public Finance Act 1989:
- an operating statement reflecting the forecast revenue and expenses for the financial year ending 30 June 2004
- a statement of the estimated financial position as at 30 June 2003 and forecast financial position as at 30 June 2004
- a statement of cash flows reflecting forecast cash flows for the year ending 30 June 2004
- a statement showing the reconciliation of the net forecast operating surplus to the net cash flow forecast from operating activities for the year ending 30 June 2004
- a statement of forecast movements in taxpayers’ funds (equity)
- a statement of forecast commitments
- a statement of forecast details of physical assets by category
- a statement of significant underlying assumptions
- a statement of accounting policies
- a statement of objectives specifying the financial performance forecast for the Ministry for the year ending 30 June 2004
- a statement of objectives specifying the performance forecast for each class of outputs for the year ending 30 June 2004.
Financial highlights
| 2002/03 Main estimates $000 |
2002/03 Supplementary estimates $000 |
2002/03 Estimated actual $000 |
2003/04 Budget $000 |
|
|---|---|---|---|---|
| Revenue: Crown | 27,269 | 30,399 | 30,399 | 36,047 |
| Revenue: Other | 25 | 10 | 10 | 25 |
| Output expenses | 27,294 | 30,409 | 28,909 | 36,072 |
| Other expenses | – | – | – | – |
| Net surplus from operations | 5 | 5 | 1,505 | 5 |
| Physical assets | 893 | 834 | 834 | 774 |
| Taxpayers’ funds | 343 | 343 | 343 | 343 |
| Net cash flows from operating activities | 470 | 491 | 491 | 431 |
| Net cash flows from investing activities | (405) | (405) | (460) | (405) |
Statement of financial performance for the year ending 30 June 2004
| 2002/03 Main estimates $000 |
2002/03 Supplementary estimates $000 |
2002/03 Estimated actual $000 |
2003/04 Budget $000 |
|
|---|---|---|---|---|
| Revenue | ||||
| Crown | 27,269 | 30,399 | 30,399 | 36,047 |
| Departments | 5 | – | – | 5 |
| Other | 20 | 10 | 10 | 20 |
| Interest | – | – | – | – |
| Total revenue | 27,294 | 30,409 | 30,409 | 36,072 |
| Expenditure | ||||
| Personnel | 9,100 | 12,100 | 12,100 | 13,100 |
| Operating | 17,715 | 17,830 | 16,330 | 22,493 |
| Depreciation | 450 | 450 | 450 | 450 |
| Capital charge | 29 | 29 | 29 | 29 |
| Total expenditure | 27,294 | 30,409 | 28,909 | 36,072 |
| Profit on sale of assets | 5 | 5 | 5 | 5 |
| Other expenses | – | – | – | – |
| Net surplus from operations | 5 | 5 | 1,505 | 5 |
Statement of estimated financial position as at 30 June 2003 and forecast financial position as at 30 June 2004
| Actual financial position as at 30 June 2002 $000 |
Estimated actual financial position as at 30 June 2003 $000 |
Forecast financial position as at 30 June 2004 $000 |
|
|---|---|---|---|
| Taxpayers’ funds | 343 | 343 | 343 |
| Total taxpayers’ funds | 343 | 343 | 343 |
| Represented by: | |||
| Current assets: | |||
| Bank | 4,493 | 4,814 | 3,157 |
| Term deposits with the Crown | – | – | – |
| Prepayments | 33 | 30 | 30 |
| Debtors and receivables | 211 | 20 | 20 |
| Total current assets | 4,737 | 4,864 | 3,209 |
| Physical assets | 894 | 834 | 774 |
| Total assets | 5,631 | 5,698 | 3,983 |
| Current liabilities: | |||
| Creditors and payables | 3,840 | 2,890 | 2,865 |
| Provision for the repayment of surplus to the Crown | 726 | 1,505 | 5 |
| Employee entitlements | 438 | 480 | 420 |
| Total current liabilities | 5,004 | 4,875 | 3,290 |
| Non-current liabilities | |||
| Employee entitlements | 284 | 480 | 350 |
| Total liabilities | 5,288 | 5,355 | 3,640 |
| Net assets | 343 | 343 | 343 |
Statement of cash flows for the year ending 30 June 2004
| 2002/03 Main estimates $000 |
2002/03 Supplementary estimates $000 |
2002/03 Estimated actual $000 |
2003/04 Budget $000 |
|
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Cash provided from: | ||||
| Supply of outputs to Crown | 27,269 | 30,399 | 30,399 | 36,047 |
| Supply of outputs to departments | 5 | 160 | 160 | 5 |
| Supply of outputs to others | 20 | 43 | 43 | 20 |
| Interest | (2) | (2) | (2) | – |
| Cash disbursed to: | ||||
| Cost of producing outputs | (26,793) | (30,779) | (29,064) | (35,573) |
| Capital charge | (29) | (29) | (29) | (29) |
| Net cash flows from operating activities | 470 | (208) | 1,507 | 470 |
| Cash flows from investing activities | ||||
| Cash provided from: | ||||
| Sale of physical assets | (5) | (5) | (5) | (5) |
| Cash disbursed to: | ||||
| Purchase of physical assets | (400) | (400) | (455) | (400) |
| Net cash flows from investing activities | (405) | (405) | (460) | (405) |
| Cash flows from financing activities | ||||
| Cash disbursed to: | ||||
| Repayment of surplus to Crown | (22) | (22) | (726) | (764) |
| Net cash flows from financing activities | (22) | (22) | (726) | (764) |
| Net decrease in cash held | 43 | (635) | 321 | (699) |
| Opening cash balance at 1 July | 2,997 | 4,493 | 4,493 | 3,858 |
| Projected closing cash and deposits at 30 June 2003 | 3,040 | 3,858 | 4,814 | 3,159 |
Reconciliation of net operating surplus to net cash flow from operating activities for the year ending 30 June 2004
| 2002/03 Main estimates $000 |
2002/03 Supplementary estimates $000 |
2002/03 Estimated actual $000 |
2003/04 Budget $000 |
|
|---|---|---|---|---|
| Net surplus from operations | 5 | 5 | 1,505 | 5 |
| Add non-cash item | ||||
| Depreciation | 450 | 450 | 450 | 450 |
| Add/(less) movements in working capital items | ||||
| Decrease in prepayments | – | 3 | 3 | – |
| Decrease in debtors and receivables | – | 191 | 191 | – |
| Decrease in payables and provisions | – | (722) | (722) | – |
| Decrease in other accrued liabilities | – | (173) | (173) | – |
| Increase in provision for employee entitlements | – | 23 | 238 | – |
| Add/(less) investing activity | ||||
| Net gain on sale of physical assets | 15 | 15 | 15 | 15 |
| Net cash flow from operating activities | 470 | (208) | 1,507 | 470 |
Statement of movement in taxpayers’ funds for the year ending 30 June 2004
| Actual financial position as at 30 June 2002 $000 |
Estimated actual financial position as at 30 June
2003 $000 |
Forecast financial position as at 30 June 2004 $000 |
|
|---|---|---|---|
| Taxpayers’ funds brought forward as at 1 July | 343 | 343 | 343 |
| Net surplus from operations | 726 | 1,505 | 5 |
| Total recognised revenues and expenses for the year | 726 | 1,505 | 5 |
| Provision for repayment of surplus to the Crown | (726) | (1,505) | (5) |
| Taxpayers’ funds as at 30 June | 343 | 343 | 343 |
Statement of commitments for the year ending 30 June 2004
| Actual financial position as at 30 June 2002 $000 |
Estimated actual financial position as at 30 June 2003 $000 |
Forecast financial position as at 30 June 2004 $000 |
|
|---|---|---|---|
| Operating and accommodation lease commitments (GST exclusive) |
|||
| Not later than 1 year | 1,154 | 927 | 915 |
| Later than 1 year but not later than 2 years | 1,050 | 915 | 910 |
| Later than 2 years but not later than 5 years | 2,155 | 983 | 73 |
| Later than 5 years | – | – | – |
| Total operating and lease commitments | 4,359 | 2,825 | 1,898 |
| Capital commitments | – | – | – |
| Total commitments | 4,359 | 2,825 | 1,898 |
Forecast details of physical assets by category as at 30 June 2004
| 30 June 2003 Estimated Actual Position $000 |
30 June 2004 Cost $000 |
30 June 2004 Accumulated Depreciation $000 |
30 June 2004 Net Book Value $000 |
|
|---|---|---|---|---|
| Furniture and fittings | 367 | 1,201 | 855 | 346 |
| Motor vehicles | – | 50 | 50 | – |
| Plant and equipment | 467 | 1,779 | 1,351 | 428 |
| Total | 834 | 3,030 | 2,256 | 774 |
Statement of significant underlying assumptions
The financial statements for the Ministry for the Environment have been prepared in accordance with section 34A of the Public Finance Act 1989.
These forecast financial statements comply with generally accepted accounting practice. The measurement base used is historic cost.
Reliance is placed on the fact that the Ministry for the Environment is a going concern.
The accrual basis of accounting has been used for the preparation of these forecast financial statements.
