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Financial statements for the Ministry for the Environment

Performance Indicators for the Year Ended 30 June 2010

  Unit Actual 2010 Supplementary estimates
2010
Operating results      
Revenue: Crown $000 57,133 62,338
Revenue: Departmental and other $000 2,734 6,765
Output expenses $000 59,835 69,103
Gain on sale of assets $000 12 5
Net surplus $000 44 5
Working capital      
Net current assets $000 3,685 3,386
Current ratio Ratio 1.48 1.32
Resource utilisation      
Plant and equipment      
Plant and equipment at year-end $000 1,290 1,235
Value per employee $000 4.4 4.1
Additions as % of plant and equipment % 23.2 19.6
Plant and equipment as % of total assets % 8.9 6.9
Intangible assets      
Intangible assets at year-end $000 1,938 2,407
Value per employee $000 6.6 8.0
Additions as % of intangible assets % 42.1 57.8
Intangible assets as % of total assets % 13.3 13.5
Taxpayers’ funds      
Level at year-end $000 5,992 5,992
Level per employee $000 20.4 20.0
Net cash flows      
Surplus/(deficit) from operating activities $000 (3,930) 7,070
Surplus/(deficit) from investing activities $000 (1,080) (1,628)
Surplus/(deficit) from financing activities $000 (107) (107)
Net increase/(decrease) in cash held $000 (5,117) 5,335
Human resources      
Staff turnover % 10.0 16.0
Average length of service Years 4.1 3.0
Total staff No. 294 300

Statement of Comprehensive Income for the Year Ended 30 June 2010

Actual
2009
$000
  Notes Actual
2010 $000
Main estimates
2010
$000
Supplementary estimates
2010
$000
  Income        
63,570 Crown   57,475 68,475 62,338
2,450 Other revenue 2 2,734 4,560 6,765
0 Gains 3 12 5 5
66,020 Total income   59,879 73,040 69,108
  Expenditure        
27,652 Personnel costs 4 27,263 27,526 27,526
980 Depreciation and amortisation expense 8, 9 1,278 1,501 1,275
383 Capital charge 5 278 383 383
36,007 Other operating expenses 6 31,016 43,625 39,919
65,022 Total expenditure   59,835 73,035

69,103

998 Net surplus and total comprehensive income   44 5 5

Explanations of significant variances against budget are detailed in note 20.

The notes form an integral part of, and should be read in conjunction with, these financial statements.

Statement of Financial Position as at 30 June 2010

Actual
2009
$000
  Notes Actual
2010
$000
Main estimates
2010
$000
Supplementary estimates
2010
$000
  Assets        
  Current assets        
8,197 Cash and cash equivalents   3,080 12,224 13,532
5,123 Debtors and other receivables 7 8,003 500 500
182 Prepayments   225 100 100
13,502 Total current assets   11,308 12,824 14,132
  Non-current assets        
1,557 Plant and equipment 8 1,290 1,432 1,235
1,835 Intangible assets 9 1,938 2,432 2,407
3,392 Total non-current assets   3,228 3,864 3,642
16,894 Total assets   14,536 16,688 17,774
  Liabilities        
  Current liabilities        
6,888 Creditors and other payables 10 4,906 8,340 8,340
998 Return of operating surplus 11 44 5 5
470 Provisions 12 662 0 0
2,401 Employee entitlements 13 2,011 1,522 2,401
10,757 Total current liabilities   7,623 9,867 10,746
  Non-current liabilities        
1,036 Employee entitlements 13 921 829 1,036
1,036 Total non-current liabilities   921 829 1,036
11,793 Total liabilities   8,544 10,696 11,782
5,101 Net assets   5,992 5,992 5,992
  Taxpayers’ funds        
5,101 General funds 14 5,992 5,992 5,992
5,101 Total taxpayers’ funds   5,992 5,992 5,992

Explanations of significant variances against budget are detailed in note 20.

The notes form an integral part of, and should be read in conjunction with, these financial statements.

Statement of Changes in Taxpayers’ Funds for the Year Ended 30 June 2010

Actual
2009
$000
  Actual
2010
$000
Main estimates
2010
$000
Supplementary estimates
2010
$000
3,712 Balance at 1 July 5,101 5,101 5,101
998 Total comprehensive income 44 5 5
(998) Return of operating surplus to the Crown (44) (5) (5)
1,389 Capital injections 891 891 891
5,101 Balance at 30 June 5,992 5,992 5,992

The notes form an integral part of, and should be read in conjunction with, these financial statements.

Statement of Cash Flows for the Year Ended 30 June 2010

Actual
2009
$000
  Note Actual
2010
$000
Main estimates
2010
$000
Supplementary estimates
2010
$000
  Cash flows from operating activities        
60,153 Receipts from Crown   54,844 68,475 65,755
2,740 Receipts from other revenue   2,242 4,634 7,160
(36,388) Payments to suppliers   (32,871) (42,815) (38,396)
(26,565) Payments to employees   (27,769) (27,526) (27,527)
(383) Payments for capital charge   (278) (383) (383)
(628) Goods and services tax (net)   (98) 0 461
(1,071) Net cash flow from operating activities 15 (3,930) 2,385 7,070
           
  Cash flows from investing activities        
0 Receipts from sale of plant and equipment   12 5 5
(370) Purchase of plant and equipment   (240) (375) (242)
(1,349) Purchase of intangible assets   (852) (1,111) (1,391)
(1,719) Net cash flow from investing activities   (1,080) (1,481) (1,628)
           
  Cash flows from financing activities        
1,389 Capital injections   891 891 891
(8,890) Return of operating surplus   (998) (5) (998)
(7,501) Net cash flow from financing activities   (107) 886 (107)
(10,291) Net (decrease)/increase in cash   (5,117) 1,790 5,335
18,488 Cash at the beginning of the year   8,197 10,434 8,197
8,197 Cash at the end of the year   3,080 12,224 13,532

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 and to be consistent with the presentation basis of the other primary financial statements.

The notes form an integral part of, and should be read in conjunction with, these financial statements.

Statement of Commitments as at 30 June 2010

Capital commitments

Capital commitments are the aggregate amount of capital expenditure contracted for the acquisition of plant, and equipment and intangible assets that have not been paid for or not recognised as a liability at balance date. The amounts are restated for the previous year.

Non-cancellable operating lease commitments

The Ministry leases plant and equipment in the normal course of its business. The majority of these are for premises and photocopiers in Wellington, Christchurch and Auckland, which have a non-cancellable leasing period ranging from one to seven years.

The Ministry’s non-cancellable operating leases have varying terms, escalation clauses, and renewal rights. There are no restrictions placed on the Ministry by any of its leasing arrangements.

The total amount of future sub-lease payments expected to be received under non-cancellable sub-leases at the balance date are $4,677 (2009: $7,000)

Other non-cancellable commitments

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

  2010
$000
2009
$000
Capital commitments    
Intangible assets 191 262
Total capital commitments 191 262
Non-cancellable operating lease commitments    
Not later than one year 2,183 2,205
Later than one year but not later than five years 8,307 8,451
Later than five years 3,895 5,909
Total non-cancellable operating lease commitments 14,385 16,565
     
Other non-cancellable commitments    
Not later than one year 12,384 13,840
Later than one year but not later than five years 16,371 17,699
Later than five years 9,115 11,799
Total other non-cancellable commitments 37,870 43,338
Total commitments 52,446 60,165

The notes form an integral part of, and should be read in conjunction with, these financial statements.

Statement of Contingent Liabilities and Contingent Assets as at 30 June 2010

Contingent liabilities

The Ministry has a contingent liability for legal proceedings of up to $2.0 million representing the amount claimed by the plaintiff in relation to defamation allegations. The Ministry is currently disputing the claim. The claim was heard by the Court of Appeal in June. The Ministry is awaiting the decision (2009: $1.95 million).

The Ministry may be required on expiry of its premises lease in Wellington to make-good any damage caused to the premises and to remove any fixtures and fittings installed by the Ministry. The Ministry has the option to renew the lease. The value of this contingent liability is unquantified.

There were no other contingent liabilities as at 30 June 2010 (2009: Nil).

Contingent assets

The Ministry has no contingent assets as at 30 June 2010 (2009: Nil).

Statement of Unappropriated Expenditure for the Year Ended 30 June 2010

Departmental appropriations and net asset schedule

Departmental output classes were produced within appropriation (2009: no unappropriated expenditure).

The notes form an integral part of, and should be read in conjunction with, these financial statements.

Statement of Departmental Expenses and Capital Expenditure against Appropriations
for the Year Ended 30 June 2010

Actual
2009
$000
  Expenditure before
re-measurement 2010
$000
Re-measurement 2010
$000
Expenditure after
re-measurement
2010
$000
Appropriation 7
2010
$000
  Vote Environment        
  Appropriation for departmental output expenses        
40,194 Environmental Policy Advice 35,741 61 35,802 38,442
1,100 Delivery of Environmental Management Programmes 1,093 3 1,096 1,100
815 Bioethics Council 0 0 0 0
0 Waste Minimisation Act 2,097 5 2,102 2,260
126 Environmental Assistance to the Pacific Islands 27 0 27 48
1,719 Resource Management Act Call Ins 1,393 0 1,393 4,086
0 Applications to the Environmental Protection Authority 463 0 463 2,000
43,954 Total 40,814 69 40,883 47,936
  Vote Climate Change        
  Appropriation for departmental output expenses        
70 Policy Advice – Energy Efficiency and Conservation 0 0 0 0
11,876 Policy Advice – Climate Change 10,902 20 10,922 12,344
9,122 Carbon Monitoring Programme 8,119 5 8,124 8,823
21,068 Total 19,021 25 19,046 21,167
  Appropriation for capital expenditure        
1,762 Capital expenditure 1,114 0 1,114 1,525

The notes form an integral part of, and should be read in conjunction with, these financial statements.


7  This includes adjustments made in the supplementary forecast and transfers under the Public Finance Act 1989.