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Financial statements

This section reports on the financial performance of Statistics NZ for the year ended 30 June 2016.

Statement of comprehensive revenue and expense

For the year ended 30 June 2016

2015      2016  2016  2017 
Actual      Actual  Unaudited budget  Unaudited forecast 
$000    Note   $000 $000  $000 
 Revenue        
104,551  Revenue Crown   119,443  114,806  124,071
8,530  Revenue other  2 7,025 8,013  8,383 
113,081  Total revenue   126,468  122,819  132,454 
   Expenses        
70,584  Personnel costs  3 77,658 79,639 82,321
25,226  Other operating expenses  4 31,515  26,263  32,048 
12,226  Depreciation and amortisation expense  12–13 12,559  12,500  12,270 
4,362   Capital charge 4,831  4,417  4,865 
83   Loss on disposal of non-current assets 14  1,940 
112,521   Total expenses   128,503  122,819  131,504 
560   Surplus / (deficit)   (2,035)  950 
560   Total comprehensive revenue and expenses   (2,035)  950 

Explanation of significant variances against the original budget 2015/16 are detailed in Note 20.

The accompanying accounting policies and notes form part of these financial statements. 

Statement of financial position

As at 30 June 2016 

2015      2016  2016  2017 
Actual      Actual  Unaudited budget  Unaudited forecast 
$000    Note   $000 $000  $000 
   Assets        
   Current assets        
20,541   Cash and cash equivalents   5,005  32,474  12,197 
15,734   Debtor Crown   31,445  30,734 
531   Debtors and other receivables  6 779  440  590 
2,307   Advances and prepayments   3,024  3,000  2,700 
39,113  Total current assets   40,253 35,914  46,221 
           
   Non-current assets        
7,900   Property, plant, and equipment  12 11,788 12,179  20,022 
31,141   Intangible assets 13  27,689  38,724  30,523 
39,041   Total non-current assets   39,477  50,903  50,545 
78,154   Total assets   79,730  86,817 96,766 
           
   Liabilities        
   Current liabilities        
4,148   Creditors and other payables  7 5,587  4,700  4,600
560   Repayment of surplus to the Crown  8 950 
307   Provisions  9 1,290 
5,910  Employee entitlements 10  6,598  4,400  6,500 
651   Goods and services tax payable   1,016  1,500  950 
427   Deferred revenue 11  250 
12,003  Total current liabilities   14,741  10,600 13,000
           
   Non-current liabilities        
5,765   Employee entitlements 10  6,205  6,400  5,500 
5,765   Total non-current liabilities   6,205 6,400 5,500 
17,768   Total liabilities   20,946  17,000  18,500 
60,386   Net assets   58,784  69,817 78,266 
           
   Equity        
60,386   Taxpayers’ funds   58,784  69,817  78,266 
60,386   Total equity   58,784  69,817  78,266 

 Explanation of significant variances against the original budget 2015/16 are detailed in Note 20.

The accompanying accounting policies and notes form part of these financial statements.

Statement of changes in equity

For the year ended 30 June 2016 

2015    2016  2016  2017 
Actual    Actual  Unaudited budget  Unaudited forecast 
$000     $000 $000  $000 
53,446  Equity as at 1 July 60,386 64,487 60,819
560  Total comprehensive revenue and expense (2,035)  950 
 Owner transactions:      
 6,940  Capital injections 433 5,330 17,447
(560)   Repayment of surplus to the Crown (950) 
60,386  Equity at 30 June 58,784  69,817  78,266

Explanation of significant variances against the original budget 2015/16 are detailed in Note 20.

The accompanying accounting policies and notes form part of these financial statements.

Statement of cash flows

For the year ended 30 June 2016

2015      2016  2016  2017 
Actual      Actual  Unaudited budget  Unaudited forecast 
$000    Note   $000 $000  $000 
  Cash flows from operating activities        
88,069  Receipts from the Crown   103,732  114,806 109,071
8,296  Receipts from other revenue    6,599 8,013 8,370
 (95,255)  Payments to suppliers and employees   (105,685)  (105,902)  (114,766) 
(644)  Goods and services tax (net)   365  200 
(4,362)   Payments for capital charge    (4,831) (4,417)  (4,865) 
(3,896)  Net cash flow from operating activities  15 180  12,500 (1,990)
           
   Cash flows from investing activities        
22   Receipts from sale of property, plant, and equipment   82 
(2,784)   Purchase of property, plant, and equipment   (8,290)  (8,000)  (9,000)  
 (8,150)  Purchase of intangible assets   (7,381)  (9,000)  (8,000)  
(10,912)   Net cash flow from investing activities   (15,589)  (17,000)  (17,000) 
           
   Cash flows from financing activities        
6,940  Capital contribution   433  5,330  17,447
(3,679)   Payment of operating surplus to the Crown   (560)  (3,679)  (237) 
3,261   Net cash flow from financing activities   (127) 1,651 17,210
           
(11,547)  Net increase/(decrease) in cash and cash equivalents   (15,536)  (2,849) (1,780) 
32,088  Cash and cash equivalents as at 1 July   20,541  35,323 13,977
20,541  Cash and cash equivalents as at 30 June   5,005 32,474  12,197 

The accompanying accounting policies and notes form part of these financial statements.

Statement of commitments

As at 30 June 2016

Capital commitments

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

Non-cancellable operating lease commitments

Statistics NZ leases property, plant, and equipment in the normal course of its business. The majority of these leases are for premises, which have a non-cancellable leasing period ranging from one to 12 years.

Statistics NZ moved into its new premises in Christchurch in February 2016, with several other agencies. Statistics NZ is the head tenant in a 12-year lease, and this is reflected in the significant lease commitments from 2016 onwards.

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

2015    2016 
Actual    Actual 
$000     $000
   Capital commitments  
 Leasehold improvements 2,261
 Total capital commitments 2,261

 

2015    2016 
Actual    Actual 
$000     $000
   Non-cancellable operating lease commitments
6,588  Not later than one year 6,219 
15,576  Later than one year and not later than five years 12,891
20,958   Later than five years 19,077
43,122   Total non-cancellable operating lease commitments 38,187

The accompanying accounting policies and notes form part of these financial statements.

Statement of contingent liabilities and contingent assets

As at 30 June 2016

Contingent liabilities

2015    2016 
Actual    Actual 
$000     $000
   Contingent liabilities
20   Employment-related matters  65
20   Total contingent liabilities 65 

Contingent assets

Statistics NZ had no contingent assets as at 30 June 2016 (2015: Nil).

The accompanying accounting policies and notes form part of these financial statements.

Notes to the financial statements

1. Statement of accounting policies for the year ended 30 June 2016

Reporting entity

Statistics New Zealand (abbreviated to Statistics NZ or referred to as ‘the department’) is New Zealand’s national statistical office, and operates under the authority of the Statistics Act 1975. Statistics NZ is a government department as defined by section 2 of the Public Finance Act 1989.

Statistics NZ’s primary objective is to give New Zealand the statistical information it needs to grow and prosper. This statistical information includes economic, environmental, fiscal, population, and social statistics. The department does not operate to make a financial return.

Statistics NZ has designated itself as a public benefit entity (PBE) for financial reporting purposes.

The financial statements, which are prepared pursuant to section 45 of the Public Finance Act 1989, encompass the activities of Statistics NZ for the year ended 30 June 2016, and were approved for issue by the Government Statistician on 30 September 2016.

Basis of preparation

The financial statements have been prepared on a going concern basis, and the accounting policies have been applied consistently throughout the period.

Statement of compliance

These financial statements have been prepared in accordance with the requirements of the Public Finance Act 1989, which include the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP) and Treasury Instructions.

These financial statements, including the comparatives, have been prepared in accordance with Tier 1 Public Sector PBE Accounting Standards (PBE Standards), and have been prepared on a historical cost basis.

Presentation currency and rounding

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000) unless otherwise stated.

Standards issued and not yet effective and not early adopted

In 2015, the External Reporting Board issued Disclosure Initiative (Amendments to PBE IPSAS 1), 2015 Omnibus Amendments to PBE Standards, and Amendments to PBE Standards and Authoritative Notice as a Consequence of XRB A1 and Other Amendments. These amendments apply to PBEs with reporting periods beginning on or after 1 January 2016. Statistics NZ will apply these amendments in preparing its 30 June 2017 financial statements. Statistics NZ expects there will be no effect in applying these amendments.

Summary of significant accounting policies

Revenue

Revenue is measured at the fair value of the consideration received or receivable to the extent it is probable that the economic benefits will flow to the department and the revenue can be reliably measured. Revenue represents amounts receivable for goods and services provided in the normal course of business once significant risks and rewards of ownership have been transferred to the buyer.

Revenue Crown

The fair value of revenue from the Crown is measured based on the department’s funding entitlement for the accounting period. The funding entitlement is established by Parliament when it passes the Appropriation Acts for the financial year. The amount of revenue recognised takes into account any amendments to appropriations approved in the Appropriation (Supplementary Estimates) Act for the year and certain other unconditional funding adjustments formally approved prior to balance date.

There are no conditions attached to the funding from the Crown. However, the department can incur expenses only within the scope and limits of its appropriations.

Sale of publications/customised outputs

The sale of publications/customised outputs is recognised when the product is sold to the customer. The recorded revenue is the gross amount of the sale.

Contract surveys

Revenue from contracted surveys is recognised to the extent that the service has been completed by Statistics NZ.

Other income

Other sources of income are recognised when earned and are reported in the financial periods to which they relate.

Capital charge

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

Leases

Finance leases

Leases in which Statistics NZ assumes substantially all the risks and rewards of ownership are classified as finance leases. The assets and liabilities are recognised at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. Assets acquired by way of a finance lease are included in property, plant, and equipment, and depreciated over their useful lives. If there is no reasonable certainty that the department will obtain ownership by the end of the lease term, the asset is fully depreciated over the shorter of the lease term or its useful life.

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.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and funds on deposit with banks with a maturity period of 90 days or less and are measured at its carrying value.

The department is only permitted to expend its cash and cash equivalents within the scope and limits of its appropriations.

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 if relevant.

Impairment of a receivable is established when there is objective evidence that the department 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 receivable 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 a provision for doubtful debts account, and the amount of the loss is recognised in the surplus or deficit. Overdue receivables that are renegotiated are reclassified as current (that is, not past due).

Property, plant, and equipment

Property, plant, and equipment is recognised at the costs directly attributable to bringing the assets to the location and condition necessary to operate in the intended manner.

Property, plant, and equipment consists of computer equipment, leasehold improvements, furniture and fixtures, and office equipment. All property, plant, and equipment is shown at cost, less accumulated depreciation and impairment losses.

Individual assets, or group of assets, are capitalised if their cost is greater than $1,500. The value of an individual asset that is less than $1,500 and is part of a group of similar assets is capitalised.

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 Statistics NZ and the cost of the item can be measured reliably. Work in progress is recognised at cost less impairment and is not depreciated.

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 department and the cost of the item can be measured reliably.

The costs of day-to-day servicing of property, plant, and equipment are recognised in the surplus or deficit as they are incurred.

Derecognition

An item of property, plant, and equipment is derecognised upon sale, retirement, or disposal. Realised gains and losses arising from the derecognition of property, plant, and equipment are recognised in the surplus or deficit in the period in which the transaction occurs. The gain or loss is calculated as the difference between the carrying amount of the asset and the net disposal proceeds received (if any).

Depreciation

Depreciation is provided on a straight-line basis on all property, plant, and equipment, at rates that will write off the cost of the assets to their estimated residual values over their useful lives. In determining an asset’s useful life, consideration is given to its expected usage, its expected wear and tear, technical obsolescence, and legal or similar limits on its use.

The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:

Furniture and office equipment        5 to 7 years
Computer equipment                       3 to 5 years
Leasehold improvements                 remaining term of the lease or the estimated remaining useful lives of the improvements, but not to exceed 12 years – whichever is the shorter.

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.

Intangible assets

Software acquisition and development

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use by Statistics NZ, are recognised as an intangible asset. Direct costs include the software development, employee and directly applicable operating costs.

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 comprehensive revenue and expense. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Software – acquired and developed         3 to 8 years

Impairment of non-financial assets

Property, plant, and equipment, and intangible assets are tested 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 service amount. The recoverable service amount is the higher of an asset’s fair value less costs to sell and value in use.

Value in use is determined by the department as being the depreciated replacement cost for an asset. The non- financial assets of the department are designated as non-cash generating assets as they are not primarily dependent on the asset’s ability to generate net cash inflows.

If an asset’s carrying amount exceeds its recoverable service amount, the asset is impaired and the carrying amount is written down to the recoverable service amount. The total impairment loss is recognised in the statement of comprehensive revenue and expense.

Creditors and other payables

Short-term creditors and other payables are their face value.

Employee entitlements

Short-term employee entitlements

Employee entitlements that Statistics NZ 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, retiring and long-service leave entitlements expected to be settled within 12 months, and sick leave.

Statistics NZ recognises a liability for sick leave to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that Statistics NZ anticipates it will be used by staff to cover those future absences.

Statistics NZ 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

Employee entitlements that are due to be settled 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 using the three risk-free discount rates and a salary inflation factor as supplied by the New Zealand Treasury. The risk-free discount rates and the salary inflation factor are detailed in Note 10.
Superannuation schemes

Defined contribution schemes

Obligations for contributions to the State Sector Retirement Savings Scheme, KiwiSaver, and the Government Superannuation Fund are accounted for as defined contribution schemes and are recognised as an expense in the statement of comprehensive revenue and expense as incurred.

Provisions

Statistics NZ recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that an outflow of future economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation, using a discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as a finance cost.

Equity

Equity is the Crown’s investment in Statistics NZ and is measured as the difference between total assets and total liabilities.

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.

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, Inland Revenue is included as part of receivables or payables in the statement of financial position.

The net GST paid to, or received from Inland Revenue, 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

Statistics NZ is a government department and consequently is exempt from income tax. Accordingly, no provision has been made for income tax.

Statement of cost accounting policies

Statistics NZ has determined the cost of outputs using the cost allocation system outlined below.

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. Indirect costs are charged to outputs based on cost drivers and related activity. Personnel costs are either charged on the basis of actual time incurred using a time recording system or assigned with other indirect costs to outputs based on the proportion of direct expenditure.

There have been no material changes to the costs allocation methodology since the date of the last audited financial statements.

Critical accounting estimates and assumptions

In preparing these financial statements Statistics NZ 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 referred to below:

Useful lives of software

The useful life of software is determined at the time the software is acquired or developed, and brought into use. It is reviewed at each reporting date for appropriateness. For computer software licences, the useful life represents management’s view of the expected period over which the department will receive benefits from the software, but not exceeding the licence term. For internally generated software developed by the department, the life is based on historical experience with similar systems as well as anticipation of future events, which may impact their useful life, such as changes in technology.

Long service leave and retirement gratuities

An analysis of the exposure in relation to estimates and uncertainties surrounding long service leave and retirement gratuities liabilities is disclosed in Note 10.

Critical judgements in applying Statistics NZ’s accounting policies

Management has exercised the following critical judgements in applying Statistics NZ’s accounting policies for the period ended 30 June 2016:

Leases classification

Determining whether a lease agreement is a finance lease or an operating lease requires judgement as to whether the agreement transfers substantially all the risks and rewards to the department. Judgement is required on various aspects that include, but are not limited to, the fair value of the leased asset, the economic life of the leased asset, whether or not to include renewal options in the lease term, and determining an appropriate discount rate to calculate the present value of the minimum lease payments. Classification as a finance lease means the asset is recognised in the statement of financial position as property, plant, and equipment, whereas with an operating lease no such asset is recognised.

Statistics NZ has exercised its judgement on rental leases, and has determined them to be operating leases.

Budget and forecast figures

Basis of the budget and forecast figures

The 2016 budget figures are for the year ended 30 June 2016 and were published in the 2014/15 annual report. They are consistent with the department’s best estimate financial forecast information submitted to Treasury for the Budget Economic and Fiscal Update (BEFU) for the year ending 2015/16.

The 2017 forecast figures are for the year ending 30 June 2017, which are consistent with the best estimate financial forecast information submitted to Treasury for the BEFU for the year ending 2016/17.

The forecast financial statements have been prepared as required by the Public Finance Act to communicate forecast financial information for accountability purposes.

The budget and forecast figures are unaudited and have been prepared using the accounting policies adopted in preparing these financial statements.

The 30 June 2017 forecast figures have been prepared in accordance with PBE FRS 42 Prospective Financial Statements. The forecast financial statements were approved for issue by the Government Statistician on 5 April 2016.

The Government Statistician is responsible for the forecast financial statements, including the appropriateness of the assumptions underlying them and all other required disclosures.

While the department regularly updates its forecasts, updated forecast financial statements for the year ending 30 June 2017 will not be published.

Significant assumptions used in preparing the forecast financials

In preparing the forecast figures, estimates and assumptions have been made concerning the future based on the best information available to Statistics NZ. These estimates and assumptions may differ from the subsequent actual results. The main assumptions are as follows:

  • The forecasts have been compiled on the basis of existing government policies and Ministerial expectations. The 2016/17 actual financial statements may include changes to the baseline budget through new initiatives or technical adjustments. Any such changes will affect Revenue from the Crown and Output Expenditure.
  • Forecast sales to customers (‘Revenue other’ in the Statement of comprehensive revenue and expense) is based on the best available estimates but the actual financial result for 2016/17 is subject to demand fluctuations.
  • The forecast personnel assumptions are based on the current salaries costs adjusted for any anticipated remuneration increases for the forecast year.
  • Forecast expenditure is based on the assumption that Statistics NZ will continue to realise efficiency and effectiveness savings in 2016/17. The department is focused on improved oversight of expenditure through enhanced planning, budgeting, and prioritisation processes.

2. Revenue other

2015   2016 
Actual    Actual 
$000     $000
3,911  Sale of publications/customised outputs 3,514
1,699  Contract surveys 1,511
2,250   Insurance revenue

-

29  Rental income from sub-tenants 836 
 Other services revenue from sub-tenants 510 
25   Training
616   Other 654 
8,530  Total revenue other 7,025

Statistics NZ moved to its new premises in Christchurch in February 2016, with several other agencies. Statistics NZ is the head tenant, which has resulted in the increase in revenue from sub-tenants in 2016.

3. Personnel costs

2015    2016 
Actual    Actual 
$000     $000
67,335  Salaries and wages 71,908
2,216   Employer contributions to defined contribution plans 2,328
610   Increase/(decrease) in employee entitlements 1,128
423  Other 2,294 
70,584   Total personnel costs 77,658

4. Other operating expenses

2015    2016 
Actual    Actual 
$000     $000
5,130   Operating lease and other rentals 6,052
4,801  Software licenses 5,926
3,877  Contracted and professional services 3,725
1,004  Consultancy 3,503 
1,589   Building services 1,817
1,534   Domestic and Australia travel 1,728 
850   Training and development 1,093 
890   Telecommunications  1,074 
733   Printing and photocopying 816 
 IT outsourced services 798 
770   Interviewer travel 759 
84   Fees to Audit NZ for audit of the financial statements 93 
4,004   Other operating expenses 4,131 
25,266   Total other operating expenses 31,515

5. Capital charge

Capital charge for 2015/16 was $4,830,880 (2015: $4,361,680).

The department pays a capital charge to the Crown based on equity as at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2016 was 8 percent (2015: 8 percent).

6. Debtors and receivables

2015    2016 
Actual    Actual 
$000     $000
536  Debtors and other receivables (exchange transactions) 784 
(5)   Less: Provision for doubtful debts (5) 
531   Net debtors and other receivables 779 

The carrying value of debtors and other receivables approximates their fair value. Movements in the provision for impairment are as follows:

2015    2016 
Actual    Actual 
$000     $000
 Balance at 1 July
 Additional provisions made during the year
 Balance at 30 June 5 

The provision for impairment has been calculated based on a review of specific overdue receivables and a collective assessment. The collective impairment provision is based on an analysis of past collection history and debt write-offs.

Statistics NZ holds no collateral as security or other credit enhancements over receivables that are either past due or impaired.

  2015 2016
  Gross  Impairment  Net  Gross  Impairment  Net 
  $000  $000  $000  $000  $000  $000 
 Not past due 243 -

243

374 - 374
 Past due 1–30 days 268  (1)  267  229  (1)  228 
 Past due 31–60 days 22  (2)  20  84  (1)  83 
 Past due 61–90 days (2)  (1) 
 Past due > 90 days 93  (2)  91 
 Total 536  (5)  531  784  (5)  779 

7. Creditors and other payables

2015    2016 
Actual    Actual 
$000     $000
923  Creditors (exchange transactions) 1,555 
3,225  Accrued expenses (exchange transactions) 4,032
4,148  Total creditors and other payables 5,587

Creditors and other payables are non-interest bearing and are normally settled on 30-day terms. The carrying value of creditors and other payables approximates their fair value.

8. Repayment of surplus to the Crown

Under the Public Finance Act, no operating surplus can be retained by Statistics NZ. The return of the operating surplus to the Crown is required to be paid by 31 October each year.

There was no provision for the repayment of surplus to the Crown for 2015/16 (2015: $560,000).

9. Provisions

  Superannuation Restructuring  Onerous contract Total 
 $000  $000 $000  $000 
 2015        
 Opening balance at 1 July 2014 36 1,381  307  1,724 
 Additional provisions recognised - -
 Amounts used (36)  (1,333)  (1,369) 
 Unused amounts reversed (48)  (48) 
 Closing balance at 30 June 2015 -  - 307 307
 Analysed as:        
 Current - 307  307 
 Non-current
         
 2016        
 Opening balance at 1 July 2015 - 307  307 
 Additional provisions recognised 1,290  1,290 
 Amounts used - (307)  (307) 
 Unused amounts reversed
 Closing balance at 30 June 2016 1,290 1,290 
 Analysed as:        
 Current - 1,290 -

1,290

 Non-current  -

Restructuring provision
The restructuring provision relates to costs for organisational changes to the Digital Business Services branch.

Onerous contracts
The onerous contract arose from the decision to move the Christchurch office from Dollan House to the Christchurch Integrated Government Accommodation (CIGA). The move took place in February 2016.

10. Employee entitlements

2015    2016 
Actual    Actual 
$000     $000
   Current employee entitlements  
4,239   Annual leave 4,468
410   Sick leave 505
1,261   Retirement and long-service leave 1,625
5,910   Total current portion 6,598 
     
   Non-current employee entitlements  
5,765   Retirement and long-service leave 6,205
5,765   Total non-current portion 6,205
     
11,675  Total employee entitlements 12,803

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 include the risk-free discount rates and the salary inflation factor. Any changes in these assumptions will impact on the carrying amount of the liability.

The department has used the actuarial models provided by the Treasury including the applicable risk-free discount rates and salary inflation factor. Risk-free discount rates of 2.12 percent (year 1), 1.95 percent (year 2), and 3.13 percent (year 3 onwards), and a salary inflation factor of 3.00 percent were used. The risk-free discount rate used for  year 3 onwards is based on the average of 20 forward rates (from year 3 to 22 inclusive) taken from the published table of discount rates as at 30 June 2016. The salary inflation factor is based on using a 1.5 percent medium-term inflation assumption plus 1.5 percent for long-term labour productivity growth for the public sector.

If the risk-free discount rates were to differ by 1 percent from the department’s estimates, with all other factors held  constant, the carrying amount of the liability would be an estimated $507,105 lower (1 percent increase) or $586,251 higher (1 percent decrease).

If the salary inflation factor was to differ by 1 percent from the department’s estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $586,358 higher (1 percent increase) or $516,995 lower (1 percent decrease).

11. Deferred revenue

Deferred revenue of $250,000 (2015: $427,000) is the portion of operating revenue received that relates to the ensuing financial year. It will be recognised as income when the services are provided or performed.

12. Property, plant, and equipment

Carrying amounts at year-end are stated at cost less accumulated depreciation and include work in progress relating to leasehold improvements $507,000 (2015: $1,953,000), office equipment of $12,000 (2015: Nil) and computer hardware of $4,000 (2015: $10,000).

There are no restrictions over the title of Statistics NZ’s property, plant, and equipment. No items of property, plant, and equipment are pledged as security for liabilities.

  Furniture and fixtures Leasehold
improvements
 
Office equipment  Computer hardware Total 
 $000  $000    $000 $000  $000 
Cost          
 Balance at 1 July 2014 4,709 10,938

1,012

19,620 36,279
 Additions 14  890  910
 Disposals - - (1,194) (1,194) 
 Work in progress movement 1,953  (80)  1,873 
 Balance at 30 June 2015 4,715 12,891  1,026 19,236 37,868
           
 Balance at 1 July 2015 4,715 12,891  1,026 19,236  37,868
 Additions 1,164  6,220  50  2,126  9,560 
 Disposals (981)  (3,915)  (63)  (1,234)  (6,193) 
 Work in progress movement  - (1,446)  12  (6)  (1,440)
 Balance at 30 June 2016 4,898 13,750  1,025 20,122  39,795
           
 Accumulated depreciation and impairment losses          
 Balance at 1 July 2014 3,375  6,687  845  14,212  25,119
 Depreciation expense 333 2,059  88  3,553  6,033
 Eliminate on disposal (1,184)  (1,184) 
 Balance at 30 June 2015 3,708 8,746  933  16,581 29,968 
           
 Balance at 1 July 2015 3,708 8,746  933  16,581 29,968
 Depreciation expense 358 1,162  57  1,887  3,464
 Eliminate on disposal (614)  (3,529)  (63)  (1,219) (5,425) 
 Balance at 30 June 2016 3,452 6,379  927  17,249 28,007
           
 Carrying amounts          
 At 1 July 2014 1,334 4,251  167  5,408  11,160
 At 30 June and 1 July 2015 1,007 4,145  93  2,655  7,900
 At 30 June 2016 1,446  7,371  98  2,873 11,788

13. Intangible assets

  Software Internally generated software Total 
 $000 $000  $000 
Cost      
 Balance at 1 July 2014 11,033 61,238 72,271 
 Additions 271  8,343 8,614
 Disposals (189)  (4,339) (4,528) 
 Work in progress movement (1,929)  (1,929)
 Balance at 30 June 2015 11,115  63,313 74,428
       
 Balance at 1 July 2015 11,115 63,313 74,428
 Additions 716  2,553 3,269
 Disposals (764)  (4,514)  (5,278) 
 Work in progress movement 3,628 3,628 
 Balance at 30 June 2016 11,067 64,980 76,047
       
 Accumulated amortisation and impairment losses      
 Balance at 1 July 2014 8,321 33,206 41,527
 Amortisation expense 1,094 5,099 6,193
 Eliminate on disposal (94)  (4,339)  (4,433) 
 Balance at 30 June 2015 9,321 33,966 43,287
       
 Balance at 1 July 2015 9,321 33,966  43,287 
 Amortisation expense 595  8,500 9,095
 Eliminate on disposal (764) (3,260)  (4,024) 
 Balance at 30 June 2016 9,152 39,206 48,358
       
 Carrying amounts      
 At 1 July 2014 2,712 28,032 30,744
 At 30 June and 1 July 2015 1,794 29,347 31,141
 At 30 June 2016 1,915 25,774 27,689

Carrying amounts at year-end are stated at cost less accumulated amortisation and include work in progress relating to internally generated assets of $8,705,000 (2015: $5,077,000).

There are no restrictions over the title of the Statistics NZ’s intangible assets. No intangible assets are pledged as security for liabilities.

14. Loss on disposal of non-current assets

During the period there was a loss on the sale and disposal of property, plant, and equipment, and intangible assets of $1,940,000 (2015: $83,000).

15. Reconciliation of net surplus/(deficit) to net cash from operating activities

2015    2016 
Actual    Actual 
$000     $000
560  Net surplus / (deficit) (2,035) 
   Items classified as investing or financing activities  

1,466

 (Gain)/loss on derecognition of work in progress 654

83

 (Gain)/loss on disposal of non-financial assets 1,940 

1,549

 Total items classified as investing or financing activities 2,594
     
   Non-cash items  

12,226

 Depreciation and amortisation 12,559

477

 Movements in non-current employee entitlements 440 

(343)

 Movements in non-current provisions

12,360

 Total non-cash items 12,999 
     
   Working capital movements  
(15,734)   (Increase)/decrease in debtor Crown (15,711) 
(126)   (Increase)/decrease in debtors and other receivables (248) 

548

 (Increase)/decrease in advances and prepayments (717) 

(748)

 Increase/(decrease) in creditor Crown
(613)   Increase/(decrease) in creditors and other payables 1,439 
(644)   Increase/(decrease) in goods and services tax payable 365
(1,074)   Increase/(decrease) in current provisions 983 
133   Increase/(decrease) in employee entitlements 688 
(107)   Increase/(decrease) in deferred revenue (177) 
(18,365)   Net working capital movements (13,378) 
(3,896)  Net cash flows from operating activities 180 

16. Related-party transactions and key management personnel

Related-party transactions

Statistics NZ is a wholly-owned entity of the Crown.

Related-party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and conditions no more or less favourable than those that it is reasonable to expect the department would have adopted in dealing with the party at arm’s length in the same circumstances. Further, transactions with other government departments and Crown entities are not disclosed as related-party transactions when they are consistent with the normal operating arrangements between government agencies and undertaken on the normal terms and conditions for such transactions.

There were no related-party transactions that were not within a normal arm’s length supplier or client/recipient relationship.

Key management personnel compensation

2015    2016 
Actual    Actual 
 Executive Leadership Team(1)
1,549  Remuneration ($000) 1,658
6.0    Full-time equivalent members 6.0 
1. Executive Leadership Team includes the Government Statistician.  

There were no termination benefits and post-employment benefits paid to key management personnel for financial year ended 30 June 2016 (2015: Nil). The remuneration of any staff member permanently in a role or acting in a role within that team has been included for the period they were a member.

The above key management personnel disclosure excludes the Minister of Statistics. The Minister’s remuneration and other benefits are not received only for his role as a member of key management personnel of the department. The Minister’s remuneration and other benefits are set by the Remuneration Authority under the Civil List Act 1979 and are paid under Permanent Legislative Authority, and not paid by the department.

17. Events after the balance sheet date

There have been no significant events after the balance sheet date.

18. Financial instruments

Financial instrument categories

The carrying amounts of financial assets and financial liabilities in each of the PBE IPSAS 29 categories are as follows:

2015    2016 
Actual    Actual 
$000     $000
   Loans and receivables  
20,541   Cash and cash equivalents  5,005 
2,838    Debtors and other receivables 3,803 
23,379   Total loans and receivables 8,808 
   Financial liabilities measured at amortised cost  
4,148   Creditors and other payables 5,587 
4,148  Financial liabilities measured at amortised cost 5,587

Financial instrument risks

Statistics NZ’s activities expose it to a variety of credit and liquidity risks. The department 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

A credit risk is the risk that a third party will default on its obligation to Statistics NZ, causing the department to incur a loss. In the normal course of its business, credit risk arises from debtors and deposits with banks. 

The department is only permitted to deposit funds with Westpac, a registered bank, and enter into foreign exchange forward contracts with the New Zealand Debt Management Office (NZDMO). These entities have high credit ratings. The only concentration of credit risk is the deposits held with Westpac. For its other financial instruments, the department does not have significant concentrations of credit risk.

The department’s maximum credit risk exposure for each class of financial instrument is represented by the total carrying amount of cash and cash equivalents and net debtors and other receivables. There is no collateral held as security against these financial instruments, including those instruments that are overdue or impaired.

Liquidity risk

Liquidity risk is the risk that the department will encounter difficulty raising liquid funds to meet commitments as they fall due. In meeting its liquidity requirements, the department closely monitors its forecast cash requirements with expected cash drawdowns from the NZDMO. The department maintains a target level of available cash to meet liquidity requirements. The table below analyses the department’s financial liabilities (excluding derivatives) that will be settled based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed are undiscounted and based on the contractual cash flows, and are equal to the carrying amounts.

  Less than
6 months
Between 6 months
and 1 year
Between 1 year
and 5 years 
 $000 $000  $000 
2015      
Creditors and other payables (Note 7) 4,148 
 2016      
Creditors and other payables (Note 7)

5,587

19. Capital management

The department’s capital is its equity, which comprises the taxpayers’ funds and revaluation reserves. Equity is represented by net assets.

The department manages its revenues, expenses, assets, liabilities, and general financial dealings prudently. The department’s equity is largely managed as a by-product of managing income, expenses, assets, liabilities, and compliance with the Government budget processes, Treasury instructions, and the Public Finance Act.

The objective of managing the department’s equity is to ensure that Statistics New Zealand effectively achieves its goals and objectives for which it has been established, while remaining a going concern.

20. Explanations of major variances against budget

The following major budget variances occurred between the 2015/16 actuals and the 2015/16 budget. The budget figures for 2015/16 are those included in The Estimates of Appropriations for the year ending 30 June 2016.

Statement of comprehensive revenue and expense

Revenue Crown

Revenue Crown was greater than budgeted by $4.637 million. This was mainly due to additional funding received of:

  • $1.5 million to enable a fit-out to commence on the Wellington Statistics House building that will allow Ministry of Transport to relocate to Statistics House.
  • $1.21 million for the Data Futures Partnership, a cross-sector group of influential people who will work together to help drive change across New Zealand’s data-use ecosystem.

In addition, there was a timing variance overspend of $2.2 million in the 5-year Multi Year Appropriation programme that will deliver the 2018 Census of Population and Dwellings.

Total expenses

Total expenses were greater than budgeted due to the establishment of new appropriations for the Data Futures Partnership and the provision of shared accommodation in Christchurch. Work also commenced on the Wellington Statistics House refit and there was a timing variance overspend in the 5-year Multi Year Appropriation programme that will deliver the 2018 Census of Population and Dwellings.

Surplus/(Deficit)

The deficit of $2.035 million was mainly due to a shortfall in budgeted ‘revenue other’. The deficit has been funded from Equity.

Statement of financial position

Cash and cash equivalents and Debtor Crown

Cash and cash equivalents were lower than budgeted as cash drawdowns from the Crown have been reduced to a level that meets short term cash requirements. This is reflected in Debtor Crown, which is higher than budgeted due to underspending on intangible assets.

Non-current assets

Non-current assets were lower than budgeted due mainly to a reduction in capital expenditure during the year.

Current liabilities

Current liabilities were greater than budgeted due mainly to payables being greater than budgeted, an unbudgeted restructuring provision, and changes in the actuarial valuations for retiring and long-service leave in 2015/16.

Net assets and equity

Net assets and equity were lower than budgeted due to the deficit for the year and a timing difference in the drawdown of capital funding from the Crown.

Appropriation statements

The following statements report information about the expenses and capital expenditure incurred against each appropriation administered by Statistics NZ for the year ended 30 June 2016.

Statement of departmental budgeted and actual expenses and capital expenditure incurred against appropriations

For the year ended 30 June 2016

2015    2016  2016  2016  2016 
Expenditure after re-measurement    Expenditure before re-measurement  Re-measurement Expenditure after re-measurement Approved appropriation (1)
$000        $000 $000  $000 
Vote Statistics            

Departmental output expenses 

Data Futures Partnership 1,375  - 1,375  1,410 
 Services to Other Agencies RDA 1,175  - 1,175  1,369 
 Total departmental output expenses 2,550  - 2,550  2,779 
Departmental capital expenditure
9,468  Department of Statistics capital expenditure – Permanent Legislative Authority (PLA) under section 24(1) of the Public Finance Act 15,017 - 15,017  18,000 
9,468   Total departmental capital expenditure 15,017  - 15,017  18,000 
 Multi-category appropriation
15,548  Co-ordination of government statistical activities 17,904 - 17,904  17,350 
39,047   Population, social, and labour force statistical information services 41,301 41,301  41,824 
48,475  Economic and business statistical information services 51,424 - 51,424  51,549 
103,070   Total multi-category appropriation 110,629  - 110,629  110,723 
 Multi-year appropriation
2,427   2013 Census of Population and Dwellings - - - -
7,024   2018 Census of Population and Dwellings 15,323  - 15,323  19,226 
9,451  Total multi-year appropriation 15,323  - 15,323  19,226 
121,989   Total annual, multi-year, and permanent appropriations 143,519  - 143,519  150,728 
 1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act. End-of-year performance information on these appropriations has been reported on pages 34–54.

Reconciliation of multi-year appropriations

For the year ended 30 June 2016

The 2018 Census appropriation was established from 1 July 2014 to 30 June 2019, to provide for flexibility in planning for the 2018 Census of Population and Dwellings as a single programme over a five-year cycle and to continue the Census Transformation work programme for 18 months.

The Budget from 2015/16 to 2018/19 was approved by Cabinet in June 2014 following the submission of a focused, detailed 2018 Census business case.

2018 Census of
Population and Dwellings 
 Appropriation, adjustment, and use  $000
 Original appropriation 13,100
 Adjustment for 2014/15 97,988 
 Total adjusted appropriation 111,088 
 Actual expenses in 2014/15 (7,024) 
 Actual expenses in 2015/16 (15,323) 
 Total actual expenses (22,347) 
 Balance of appropriation 88,741 

Statement of departmental unappropriated expenditure and capital expenditure

For the year ended 30 June 2016

Statistics NZ had no unappropriated expenses or capital expenditure for the year ended 30 June 2016 (2015: Nil).

Statement of departmental capital injections

For the year ended 30 June 2016

2015  2016   2016 
Actual    Actual  Approved appropriation(1) 
$000     $000 $000  
   Vote Statistics    
6,940  Statistics New Zealand – Capital injection 433 433

1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act. 

Statement of departmental capital injections without, or in excess of, authority

For the year ended 30 June 2016

Statistics NZ has not received any capital injections during the year without, or in excess of, authority.

Statements of revenue and output expenses

The overarching purpose of the official statistics multi-category appropriation is to ensure the production and availability of the highest priority official statistical information to support decision-making.

This appropriation is intended to achieve the outcome of creating an informed society through official statistics. It comprises the following output categories:

  • Coordination of government statistical activities
  • Population, social, and labour force statistical information services
  • Economic and business statistical information services

Coordination of government statistical activities

The scope of this output category is limited to leadership of the OSS, including liaison with OSS partners, provision of ministerial services, statistical advice, and the operation of access channels.

For the year ended 30 June 2016

2015  2016   2016 
Actual    Actual  Approved appropriation(1) 
$000     $000 $000  
15,499   Revenue Crown 18,482  16,190 
986   Other revenue 315  1,160 
16,485   Total operating revenue 18,797  17,350 
15,548   Total output expenditure 17,905  17,350 
937   Net operating surplus/(deficit) 892 

 1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act. End-year performance information on the appropriation has been reported on pages 39–41, 46.

Population, social, and labour force statistical information services

The scope of this output category is limited to delivery of statistical information services relating to the population, environment, household economics, social conditions, and the labour force.

For the year ended 30 June 2016

2015  2016   2016 
Actual    Actual  Approved appropriation(1) 
$000     $000 $000  
37,802    Revenue Crown 39,174  38,881 
1,844    Other revenue 941  2,943 
39,646    Total operating revenue 40,115  41,824 
39,047    Total output expenditure 41,301  41,824 
599   Net operating surplus/(deficit) (1,186)  - 

1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act. End-year performance information on the appropriation has been reported on pages 39–41.

Economic and business statistical information services

The scope of this output category is limited to delivery of statistical information services relating to business and the economy.

For the year ended 30 June 2016

2015  2016   2016 
Actual    Actual  Approved appropriation(1) 
$000     $000 $000  
41,799   Revenue Crown 45,054  47,639 
5,700   Other revenue 4,594  3,910 
47,499   Total operating revenue 49,648  51,549 
48,475   Total output expenditure 51,424  51,549 
(976)   Net operating surplus/(deficit) (1,776)  - 

 1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act. End-year performance information on the appropriation has been reported on pages 39–41.

2018 Census of Population and Dwellings

This appropriation is limited to conducting the 2018 Census, and the administration and management of the ongoing census programme, as required under the Statistics Act 1975. This appropriation is intended to achieve the conducting of an official census of population and dwellings, to produce an accurate count of New Zealand’s population on census night, for electoral purposes, policy setting, and other decision-making.

For the year ended 30 June 2016

2015  2016   2016 
Actual    Actual  Approved appropriation(1) 
$000     $000 $000  
7,024    Revenue Crown 15,323  19,226 
 Other revenue
7,024    Total operating revenue 15,323  19,226 
7,024    Total output expenditure 15,323  19,226 
 Net operating surplus/(deficit) - 

 1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act. End-year performance information on the appropriation has been reported on page 51.

Data Futures Partnership

This appropriation is limited to enabling the activities of the Data Futures Partnership. The Data Futures Partnership is intended to achieve the establishment of a small, agile, and independent working group charged with ensuring New Zealand’s data is used effectively to create social and economic value for all New Zealanders.

For the year ended 30 June 2016

2015  2016   2016 
Actual    Actual  Approved appropriation(1) 
$000     $000 $000  
 Revenue Crown 1,410  1,410 
 Other revenue
 Total operating revenue 1,410  1,410 
 Total output expenditure 1,375  1,410 
 Net operating surplus/(deficit) 35 

 1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act. End-year performance information on the appropriation has been reported on page 46.

Services to other agencies RDA

This appropriation is limited to the provision of services by Statistics New Zealand to other agencies, where those services are not within the scope of another departmental output expense appropriation in Vote Statistics. This appropriation is intended to achieve the provision of shared services with other government agencies for the efficient and effective management of the Crown estate, such as the provision of shared accommodation in Christchurch.

For the year ended 30 June 2016

2015  2016   2016 
Actual    Actual  Approved appropriation(1) 
$000     $000 $000  
 Revenue Crown
 Other revenue 1,175  1,369 
 Total operating revenue 1,175  1,369 
 Total output expenditure 1,175  1,369 
-   Net operating surplus/(deficit) -  - 

 1. These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the Public Finance Act. End-year performance information on the appropriation has been reported on page 54.

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