Introduction
These forecast financial statements for the Ministry for the Environment contain the following statements pursuant to section 41 of the Public Finance Act (1989):
- a statement of financial performance reflecting the forecast revenue and expenses for the financial year ending 30 June 2007
- a statement of the estimated financial position as at 30 June 2006 and forecast financial position as at 30 June 2007
- a statement of cash flows reflecting forecast cash flows for the year ending 30 June 2007
- 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 2007
- 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 departmental capital expenditure
- 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 2007
- a statement of objectives specifying the performance forecast for each class of outputs for the year ending 30 June 2007.
Financial highlights
| 2005/06 Main estimates $000 |
2005/06 Supplementary estimates $000 |
2005/06 Estimated actual $000 |
2006/07 Budget $000 |
|
|---|---|---|---|---|
| Revenue: Crown | 51,593 | 48,949 | 48,949 | 54,817 |
| Revenue: Departmental and Other | 438 | 774 | 774 | 438 |
| Output expenses | 52,026 | 49,517 | 47,217 | 55,250 |
| Other expenses | - | - | - | - |
| Net surplus from operations | 5 | 206 | 2,506 | 5 |
| Physical assets | 2,580 | 2,014 | 2,014 | 3,165 |
| Taxpayers’ funds | 2,693 | 2,043 | 2,043 | 3,543 |
| Net cash flows from operating activities | 671 | (2,056) | 244 | 819 |
| Net cash flows from investing activities | (1,245) | (1,147) | (1,147) | (1,895) |
Statement of financial performance for the year ending 30 June 2007
| 2005/06 Main estimates $000 |
2005/06 Supplementary estimates $000 |
2005/06 Estimated actual $000 |
2006/07 Budget $000 |
|
|---|---|---|---|---|
| Revenue | ||||
| Crown | 51,593 | 48,949 | 48,949 | 54,817 |
| Departments | 428 | 428 | 428 | 428 |
| Other | 5 | 341 | 341 | 5 |
| Interest | - | - | - | - |
| Total revenue | 52,026 | 49,718 | 49,718 | 55,250 |
| Expenditure | ||||
| Personnel | 19,740 | 19,740 | 19,740 | 19,785 |
| Operating | 31,468 | 29,041 | 26,741 | 34,563 |
| Depreciation | 671 |
589 | 589 | 749 |
| Capital charge | 147 | 147 | 147 | 153 |
| Total expenditure | 52,026 | 49,517 | 47,217 | 55,250 |
| Profit on sale of assets | 5 | 5 | 5 | 5 |
| Other expenses | - | - | - | - |
| Net surplus from operations | 5 | 206 | 2,506 | 5 |
Statement of estimated financial position as at 30 June 2006 and forecast financial position as at 30 June 2007
| Actual financial position as at 30 June 2005 $000 |
Estimated actual financial position as at 30 June 2006 $000 |
Forecast financial position as at 30 June 2007 $000 |
|
|---|---|---|---|
| Taxpayers’ funds | 1,843 | 2,043 | 3,543 |
| Total taxpayers’ funds | 1,843 | 2,043 | 3,543 |
| Represented by: | |||
| Current assets: | |||
| Bank | 7,423 | 5,745 | 3,663 |
| Pre-payments | 59 | 100 | 100 |
| Debtors and receivables | 2,329 | - | - |
| Total current assets | 9,811 | 5,845 | 3,763 |
| Physical assets | 2,003 | 2,014 | 3,165 |
| Total assets | 11,814 | 7,859 | 6,928 |
| Current liabilities | |||
| Creditors and payables | 7,571 | 2,010 | 2,080 |
| Provision for the repayment of surplus to the Crown | 975 | 2,506 | 5 |
| Employee entitlements | 763 | 650 | 650 |
| Total current liabilities | 9,309 | 5,166 | 2,735 |
| Non-current liabilities | |||
| Employee entitlements | 662 | 650 | 650 |
| Total liabilities | 9,971 | 5,816 | 3,385 |
| Net assets | 1,843 | 2,043 | 3,543 |
Statement of cash flows for the year ending 30 June 2007
| 2005/06 Main estimates $000 |
2005/06 Supplementary estimates $000 |
2005/06 Estimated actual $000 |
2006/07 Budget $000 |
|
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Cash provided from: | ||||
| Supply of outputs to Crown | 51,593 | 48,949 | 48,949 | 54,817 |
| Supply of outputs to Departments | 428 | 533 | 533 | 428 |
| Supply of outputs to others | 5 | 2,565 | 2,565 | 5 |
| Cash disbursed to: | ||||
| Cost of producing outputs | (51,208) | (53,956) | (51,656) | (54,278) |
| Capital charge | (147) | (147) | (147) | (153) |
| Net cash flows from operating activities | 671 | (2,056) | 244 | 819 |
| Cash flows from investing activities | ||||
| Cash provided from: | ||||
| Sale of physical assets | 5 | 5 | 5 | 5 |
| Cash disbursed to: | ||||
| Purchase of physical assets | (1,250) | (1,152) | (1,152) | (1,900) |
| Net cash flows from investing activities | (1,245) | (1,147) | (1,147) | (1,895) |
| Cash flows from financing activities | ||||
| Cash provided from: | ||||
| Capital contribution | 850 | 200 | 200 | 1,500 |
| Cash disbursed to: | ||||
| Repayment of surplus to Crown | (5) | (975) | (975) | (2,506) |
| Net cash flows from financing activities | 845 | (775) | (775) | (1,006) |
| Net decrease in cash held | 271 | (3,978) | (1,678) | (2,082) |
| Opening cash balance at 1 July | 3,057 | 7,423 | 7,423 | 5,745 |
| Projected closing cash and deposits at 30 June | 3,328 | 3,445 | 5,745 | 3,663 |
Reconciliation of net operating surplus to net cash flow from operating activities for the year ending 30 June 2007
| 2005/06 Main estimates $000 |
2005/06 Supplementary estimates $000 |
2005/06 Estimated actual $000 |
2006/07 Budget $000 |
|
|---|---|---|---|---|
| Net surplus from operations | 5 | 206 | 2,506 | 5 |
| Add non-cash item | ||||
| Depreciation | 671 | 589 | 589 | 749 |
| Add/(less) movements in working capital items | ||||
| Increase in pre-payments | - | (41) | (41) | - |
| Decrease in debtors and receivables | - | 117 | 117 | - |
| Decrease in payables and provisions | - | (1,479) | (1,479) | - |
| Increase / (decrease) in other accrued liabilities | - | (3,730) | (3,730) | 70 |
| Decrease in provision for employee entitlements | - | (125) | (125) | - |
| Decrease in GST receivable | - | 2,412 | 2,412 | - |
| Add/(less) investing activity | ||||
| Net gain on sale of physical assets | (5) | (5) | (5) | (5) |
| Net cash flow from operating activities | 671 | (2,056) | 244 | 819 |
Statement of the forecast movement in taxpayers' funds for the year ending 30 June 2007
| Actual financial position as at 30 June 2005 $000 |
Estimated actual financial position as at 30 June 2006 $000 |
Forecast financial position as at 30 June 2007 $000 |
|
|---|---|---|---|
| Taxpayers’ funds brought forward as at 1 July | 343 | 1,843 | 2,043 |
| Net surplus from operations | 975 | 2,506 | 5 |
| Total recognised revenues and expenses for the year | 975 | 2,506 | 5 |
| Provision for repayment of surplus to the Crown | (975) | (2,506) | (5) |
| Capital contribution | 1,500 | 200 | 1,500 |
| Taxpayers’ funds as at 30 June | 1,843 | 2,043 | 3,543 |
Statement of forecast commitments for the year ending 30 June 2007
| Actual financial position as at 30 June 2005 $000 |
Estimated actual financial position as at 30 June 2006 $000 |
Forecast financial position as at 30 June 2007 $000 |
|
|---|---|---|---|
| Operating and accommodation lease commitments (GST exclusive) | |||
| Not later than 1 year | 7,387 | 901 | 901 |
| More than 1 year but not later than 2 years | 2,919 | 2,282 | 2,282 |
| More than 2 years but not later than 5 years | 6,353 | 3,860 | 3,860 |
| More than 5 years | 6,060 | 9,231 | 9,231 |
| Total operating and lease commitments | 22,719 | 16,274 | 16,274 |
| Capital commitments | - | - | - |
| Total commitments | 22,719 | 16,274 | 16,274 |
Forecast details of physical assets by category as at 30 June 2007
| Estimated actual position as at 30 June 2006 $000 |
Cost as at 30 June 2007 $000 |
Accumulated depreciation as at 30 June 2007 $000 |
Net book value as at 30 June 2007 $000 |
|
|---|---|---|---|---|
| Furniture and fittings | 1,433 | 1,887 | 564 | 1,323 |
| Computer software | 229 | 1,832 | 278 | 1,554 |
| Computer hardware | 263 | 1,183 | 1,007 | 176 |
| Office equipment | 89 | 359 | 247 | 112 |
| Total | 2,014 | 5,261 | 2,096 | 3,165 |
Departmental capital expenditure
Capital expenditure is incurred in accordance with section 24 of the Public Finance Act (1989).
| Departmental Capital Expenditure ($000) |
2006/07 Forecast |
2005/06 Estimated actual |
2005/06 Budget |
2004/05 Actual |
2003/04 Actual |
2002/03 Actual |
2001/02 Actual |
|---|---|---|---|---|---|---|---|
| Furniture and fittings | 152 | 152 | 152 | 1,500 | 7 | 15 | 55 |
| Office equipment | 62 | 62 | 62 | 3 | 21 | 32 | 57 |
| Computer software | 1,534 | 234 | 234 | 0 | 38 | 9 | 20 |
| Computer hardware | 152 | 152 | 152 | 260 | 231 | 325 | 261 |
| Total | 1,900 | 600 | 600 | 1,763 | 297 | 381 | 393 |
The furniture and fittings expenditure for the 2004/05 financial year is related to the fit out of the Ministry’s new head office (Environment House). Other expenditure is for the routine replacement and upgrade of the Ministry’s information technology and office equipment, to help our staff efficiently deliver the services set out in this Statement of Intent.
