Formats and related files
Vote Audit#
APPROPRIATION MINISTER(S): Speaker of the House of Representatives (M78)
APPROPRIATION ADMINISTRATOR: Controller and Auditor-General
RESPONSIBLE MINISTER FOR CONTROLLER AND AUDITOR-GENERAL: Speaker of the House of Representatives
Overview of the Vote#
The Speaker of the House of Representatives is responsible for appropriations in the Vote for 2020/21 covering the following:
- a total of $16.676 million for the Controller and Auditor-General supporting Parliament in ensuring accountability for the use of public resources. This includes providing advice to select committees and other stakeholders, carrying out the Controller function, and carrying out and reporting on performance audits and inquiries relating to public entities
- a total of $94.579 million for providing audit services to public entities, and other audit-related assurance services. This is largely funded by fee revenue, but includes $150,000 funded by revenue from the Crown for audits of smaller entities such as cemetery trusts and reserve boards
- a total of $1.099 million for remuneration expenses for both the Auditor-General and the Deputy Auditor-General, and
- a total of $2.525 million for the purchase or development of assets for the use of the Controller and Auditor-General.
Details of these appropriations are set out in Parts 2-4.
Details of Appropriations and Capital Injections#
Annual Appropriations and Forecast Permanent Appropriations#
Titles and Scopes of Appropriations by Appropriation Type | 2019/20 | 2020/21 | |
---|---|---|---|
Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Departmental Output Expenses |
|||
Audit and Assurance Services RDA (M78) This appropriation is limited to audit and related assurance services as required or authorised by statute. |
85,573 | 85,573 | 94,429 |
Audit and Assurance Services (M78) This appropriation is limited to audit and related assurance services as required or authorised by statute. |
2,450 | 2,450 | 150 |
Total Departmental Output Expenses |
88,023 | 88,023 | 94,579 |
Departmental Other Expenses |
|||
Remuneration of Auditor-General and Deputy Auditor-General PLA (M78) This appropriation is limited to remuneration expenses for both the Auditor-General and the Deputy Auditor-General as authorised by clause 5 of the Third Schedule of the Public Audit Act 2001. |
1,099 | 1,099 | 1,099 |
Total Departmental Other Expenses |
1,099 | 1,099 | 1,099 |
Departmental Capital Expenditure |
|||
Controller and Auditor-General - Capital Expenditure PLA (M78) This appropriation is limited to the purchase or development of assets by and for the use of the Controller and Auditor-General, as authorised by section 24(1) of the Public Finance Act 1989. |
1,926 | 1,926 | 2,525 |
Total Departmental Capital Expenditure |
1,926 | 1,926 | 2,525 |
Multi-Category Expenses and Capital Expenditure |
|||
Statutory Auditor Function MCA (M78) The single overarching purpose of this appropriation is to support Parliament in ensuring accountability for the use of public resources. |
15,421 | 15,421 | 16,676 |
Departmental Output Expenses |
|||
Performance Audits, Inquiries, and other studies This category is limited to undertaking and reporting on performance audits, inquiries, and other studies relating to public entities under the Public Audit Act 2001 and responding to requests for approvals in relation to pecuniary interest questions regulated by the Local Authorities (Members' Interests) Act 1968. |
9,939 | 9,939 | 11,040 |
Supporting Accountability to Parliament This category is limited to reporting to Parliament and others as appropriate on matters arising from audits, inquiries, and other studies, reporting to and advising select committees, and advising other agencies in New Zealand and abroad to support Parliament and governing bodies in holding their executives to account for the use of public resources. |
5,482 | 5,482 | 5,636 |
Total Multi-Category Expenses and Capital Expenditure |
15,421 | 15,421 | 16,676 |
Total Annual Appropriations and Forecast Permanent Appropriations |
106,469 | 106,469 | 114,879 |
Capital Injection Authorisations#
2019/20 | 2020/21 | ||
---|---|---|---|
Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Controller and Auditor-General - Capital Injection (M78) | - | - | 1,508 |
Supporting Information#
Part 1 - Vote as a Whole#
1.1 - New Policy Initiatives#
Policy Initiative | Appropriation | 2019/20 Final Budgeted $000 |
2020/21 Budget $000 |
2021/22 Estimated $000 |
2022/23 Estimated $000 |
2023/24 Estimated $000 |
---|---|---|---|---|---|---|
Information Systems Strategy | Statutory Auditor Function MCA - Performance Audits and Inquiries Departmental Output Expenses |
- | 423 | 850 | 937 | 1,168 |
Statutory Auditor Function MCA - Supporting Accountability to Parliament Departmental Output Expenses |
- | 333 | 668 | 736 | 917 | |
Controller and Auditor-General - Capital Expenditure PLA Departmental Capital Expenditure |
- | 1,508 | 1,800 | 1,904 | 738 | |
Total Initiatives |
- |
2,264 |
3,318 |
3,577 |
2,823 |
1.2 - Trends in the Vote#
Summary of Financial Activity
2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | ||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Actual $000 |
Actual $000 |
Actual $000 |
Actual $000 |
Final Budgeted $000 |
Estimated Actual $000 |
Departmental Transactions Budget $000 |
Non- Departmental Transactions Budget $000 |
Total Budget $000 |
Estimated $000 |
Estimated $000 |
Estimated $000 |
|
Appropriations |
||||||||||||
Output Expenses | 77,586 | 78,915 | 83,764 | 82,720 | 88,023 | 88,023 | 94,579 | - | 94,579 | 94,923 | 97,744 | 105,376 |
Benefits or Related Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Other Expenses | 972 | 1,052 | 739 | 1,064 | 1,099 | 1,099 | 1,099 | - | 1,099 | 1,099 | 1,099 | 1,099 |
Capital Expenditure | 1,100 | 1,432 | 968 | 1,090 | 1,926 | 1,926 | 2,525 | - | 2,525 | 3,035 | 3,533 | 2,028 |
Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
Multi-Category Expenses and Capital Expenditure (MCA) | ||||||||||||
Output Expenses | 9,758 | 9,524 | 9,425 | 9,670 | 15,421 | 15,421 | 16,676 | - | 16,676 | 17,365 | 17,530 | 17,932 |
Other Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Capital Expenditure | - | - | - | - | - | - | N/A | - | - | - | - | - |
Total Appropriations |
89,416 | 90,923 | 94,896 | 94,544 | 106,469 | 106,469 | 114,879 | - | 114,879 | 116,422 | 119,906 | 126,435 |
Crown Revenue and Capital Receipts |
||||||||||||
Tax Revenue | - | - | - | - | - | - | N/A | - | - | - | - | - |
Non-Tax Revenue | - | - | - | - | - | - | N/A | - | - | - | - | - |
Capital Receipts | - | - | - | - | - | - | N/A | - | - | - | - | - |
Total Crown Revenue and Capital Receipts |
- | - | - | - | - | - | N/A | - | - | - | - | - |
Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations in the Details of Appropriations and Capital Injections.
Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring
There have been no restructuring adjustments to prior year information in the Summary of Financial Activity table.
1.3 - Analysis of Significant Trends#
Forecast increases in capital expenditure and operating expenses reflect future investment in technology to support the Office's work. Costs also vary with fluctuations in the amount of audit work completed each year. The financial years ended June 2018 and 2021 include the triennial audits of Local Authorities' long-term plans, which drives higher costs.
1.5 - Relationship between Individual Appropriations and the Work Programmes#
Programme of work | Appropriations |
---|---|
Audit information reported by public entities about their performance | Audit and Assurance Services RDA Audit and Assurance Services |
Assess public sector performance and accountability Carry out inquiries into matters of public interest Provide advice and support for effective Parliamentary scrutiny Monitor spending against Parliamentary appropriations |
Statutory Auditor Function MCA
|
Reflected across all output classes | Remuneration of Auditor-General and Deputy Auditor-General PLA |
Reflected across all output classes | Controller and Auditor-General - Capital Expenditure PLA |
Part 2 - Details of Departmental Appropriations#
2.1 - Departmental Output Expenses#
Audit and Assurance Services RDA (M78)
Scope of Appropriation
Expenses and Revenue
2019/20 | 2020/21 | ||
---|---|---|---|
Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 85,573 | 85,573 | 94,429 |
Revenue from the Crown | - | - | - |
Revenue from Others | 85,573 | 85,573 | 94,429 |
Estimated actual results do not take into account the effect of Coronavirus disease (COVID-19) on audit fee revenue. The amount of audit work completed to 30 June 2020 is likely to be reduced, which will impact revenue for the year.
What is Intended to be Achieved with this Appropriation
This appropriation is intended to deliver audit services and other audit-related services to all public entities to provide Parliament and the public with independent assurance that public entities are accounting for their performance, in keeping with Parliament's intentions.
How Performance will be Assessed and End of Year Reporting Requirements
Assessment of Performance | 2019/20 | 2020/21 | |
---|---|---|---|
Final Budgeted Standard |
Estimated Actual |
Budget Standard |
|
Percentage of audit files subject to quality assurance review during the year that achieve a rating of at least "satisfactory" |
100% | New measure | 100% |
Percentage of appointed auditors with a quality assurance grade of at least "satisfactory", based on the most recent quality assurance review |
100% | 95% | 100% |
Number of audit opinions withdrawn |
No audit opinions withdrawn | New measure | No audit opinions withdrawn |
Percentage of public entities that are "satisfied" with the overall quality of their audit service (as determined by responses to our satisfaction survey) |
At least 85% | 82% | At least 85% |
Percentage of Ministers who rate our Ministerial letters (reports to them on our annual audits) as at least satisfactory |
At least 85% | New measure | At least 85% |
Percentage of audit reports that are signed by the applicable statutory deadline |
At least 80% | 82% (see Note 1) | At least 80% |
Percentage of entities with audit reports in arrears as at 30 June |
Less than 10% | 10% (see Note 1) | Less than 10% |
Percentage of finalised reports to governors about the audit (which incorporate responses from management) that are provided within 6 weeks of signing the audit report |
100% | 96% (see Note 1) | 100% |
Percentage of Ministerial letters on annual audits that are issued to Ministers and Parliamentary select committees within the expected time period: - where the audit report statutory deadline is 31 October, within 15 weeks of signing the audit report - for all other audits, within 10 weeks of the signing of the audit report |
100% | 92% | 100% |
Annual independent review confirms the probity and objectivity of the methods and processes we use to allocate and tender audits and to monitor the reasonableness of audit fees |
Confirmed | Confirmed | Confirmed |
Note 1 - These results do not take into account the potential effect of COVID-19 on the timeliness of annual audits.
Performance for this appropriation will be assessed by the performance measures listed above. The measures need to be considered in the context of the high-level outcomes outlined in The Auditor-General's strategic intentions to 2025 and in the context of the Auditor-General's Annual Plan 2020/21.
End of Year Performance Reporting
Performance information for this appropriation will be reported in the Auditor-General's 2020/21 Annual Report.
Reasons for Change in Appropriation
The increase in this appropriation for 2020/21 is mainly due to additional fee revenue for the triennial audits of Local Authorities' long term plans which are due to be completed in 2021. 2020/21 budgets also allow for costs associated with investment in technology to support the Office's operations.
Memorandum Account
2019/20 | 2020/21 | ||
---|---|---|---|
Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Name of Memorandum Account |
|||
Opening Balance at 1 July | 1,820 | 1,820 | 199 |
Revenue | 85,573 | 85,573 | 94,429 |
Expenses | 87,194 | 87,194 | 93,133 |
Transfers and Adjustments | - | - | - |
Closing Balance at 30 June |
199 | 199 | 1,495 |
Estimated actual results do not take into account the effect of COVID-19 on audit fee revenue. The amount of audit work completed to 30 June 2020 is likely to be reduced, which will impact the financial results for the year.
Audit and Assurance Services (M78)
Scope of Appropriation
Expenses and Revenue
2019/20 | 2020/21 | ||
---|---|---|---|
Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 2,450 | 2,450 | 150 |
Revenue from the Crown | 150 | 150 | 150 |
Revenue from Others | - | - | - |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to provide for audit and related assurance services. Audits of smaller entities such as cemetery trusts and reserve boards are funded by the Crown.
How Performance will be Assessed and End of Year Reporting Requirements
Performance for this appropriation will be assessed through the performance measures listed under Audit and Assurance Services RDA.
End of Year Performance Reporting
Performance information for this appropriation will be reported in the Auditor-General's 2020/21 Annual Report.
Reasons for Change in Appropriation
The decrease in this appropriation for 2020/21 is due to the appropriation reverting to the level of Crown funding for small entities. In 2019/20, the portion of this appropriation that was not funded by the Crown related to the use of Audit and Assurance Services memorandum account funds.
2.2 - Departmental Other Expenses#
Remuneration of Auditor-General and Deputy Auditor-General PLA (M78)
Scope of Appropriation
Expenses
2019/20 | 2020/21 | ||
---|---|---|---|
Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation | 1,099 | 1,099 | 1,099 |
What is Intended to be Achieved with this Appropriation
This permanent appropriation provides payment to the Auditor-General and Deputy Auditor-General as determined by the Remuneration Authority.
How Performance will be Assessed and End of Year Reporting Requirements
The Auditor-General and Deputy Auditor-General lead the performance of the Office. The performance of the Office's activities, including the above payment, is reflected in the information for departmental output and multi-category appropriations.
End of Year Performance Reporting
Performance information for the Office will be reported in the Auditor-General's 2020/21 Annual Report.
2.3 - Departmental Capital Expenditure and Capital Injections#
Controller and Auditor-General - Capital Expenditure PLA (M78)
Scope of Appropriation
Capital Expenditure
2019/20 | 2020/21 | ||
---|---|---|---|
Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Forests/Agricultural | - | - | - |
Land | - | - | - |
Property, Plant and Equipment | 1,127 | 1,127 | 685 |
Intangibles | 419 | 419 | 1,688 |
Other | 380 | 380 | 152 |
Total Appropriation |
1,926 | 1,926 | 2,525 |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to achieve the renewal of assets that support the delivery of the Controller and Auditor-General's operations.
How Performance will be Assessed and End of Year Reporting Requirements
Expenditure is in accordance with the Controller and Auditor-General's capital asset management plan.
End of Year Performance Reporting
Performance information for this appropriation will be reported in the Auditor-General's 2020/21 Annual Report.
Reasons for Change in Appropriation
The increase in this appropriation for 2020/21 is due to the planned investment in technology to support the Office's work.
Capital Injections and Movements in Departmental Net Assets
Controller and Auditor-General
Details of Net Asset Schedule | 2019/20 Estimated Actual $000 |
2020/21 Projected $000 |
Explanation of Projected Movements in 2020/21 |
---|---|---|---|
Opening Balance | 8,047 | 6,427 | |
Capital Injections | - | 1,508 | This capital injection will fund capital expenditure relating to the Office's investment in technology to support its work. |
Capital Withdrawals | - | - | |
Surplus to be Retained (Deficit Incurred) | (1,620) | 1,296 | These amounts reflect the forecast movements in the Audit and Assurance Services memorandum account. |
Other Movements | - | - | |
Closing Balance |
6,427 | 9,231 |
Part 4 - Details of Multi-Category Expenses and Capital Expenditure#
Multi-Category Expenses and Capital Expenditure#
Statutory Auditor Function (M78)
Overarching Purpose Statement
Scope of Appropriation
Departmental Output Expenses
Performance Audits, Inquiries, and other studies
This category is limited to undertaking and reporting on performance audits, inquiries, and other studies relating to public entities under the Public Audit Act 2001 and responding to requests for approvals in relation to pecuniary interest questions regulated by the Local Authorities (Members' Interests) Act 1968.
Supporting Accountability to Parliament
This category is limited to reporting to Parliament and others as appropriate on matters arising from audits, inquiries, and other studies, reporting to and advising select committees, and advising other agencies in New Zealand and abroad to support Parliament and governing bodies in holding their executives to account for the use of public resources.
Expenses, Revenue and Capital Expenditure
2019/20 | 2020/21 | ||
---|---|---|---|
Final Budgeted $000 |
Estimated Actual $000 |
Budget $000 |
|
Total Appropriation |
15,421 | 15,421 | 16,676 |
Departmental Output Expenses |
|||
Performance Audits, Inquiries, and other studies | 9,939 | 9,939 | 11,040 |
Supporting Accountability to Parliament | 5,482 | 5,482 | 5,636 |
Funding for Departmental Output Expenses |
|||
Revenue from the Crown |
14,633 | 14,633 | 16,233 |
Performance Audits, Inquiries, and other studies | 9,939 | 9,939 | 11,040 |
Supporting Accountability to Parliament | 4,694 | 4,694 | 5,193 |
Revenue from Others |
788 | 788 | 443 |
Supporting Accountability to Parliament | 788 | 788 | 443 |
Estimated actual results do not take into account the effect of COVID-19 on the Office's work programme. This is likely to result in lower costs for the year.
What is Intended to be Achieved with this Appropriation
This appropriation is intended to support Parliament in ensuring accountability for the use of public resources through:
- Services to Parliament - assistance and assurance to select committees and other stakeholders.
- Controller function - assurance to Parliament that government spending has been properly authorised by Parliament.
- Reports, Studies and Inquiries - reporting on the results of annual audits, performance audits and other studies and inquiring into a public entity's use of resources.
How Performance will be Assessed for this Appropriation
Performance for this appropriation will be assessed through the performance measures listed below. The measures need to be considered in the context of The Auditor-General's strategic intentions 2025, and the Auditor-General's Annual Plan 2020/21.
Our estimated actual results for the Statutory Auditor Function performance measures do not take into account the potential impact of COVID-19.
What is Intended to be Achieved with each Category and How Performance will be Assessed
Assessment of Performance | 2019/20 | 2020/21 | |
---|---|---|---|
Final Budgeted Standard |
Estimated Actual |
Budget Standard |
|
Departmental Output Expenses |
|||
Performance Audits, Inquiries, and other studies |
|||
This category is intended to achieve: |
|||
Percentage of Parliamentary select committees that rate our reports on inquiries, performance audits, and other studies as at least "satisfactory" |
New measure | New measure | 100% |
Percentage of performance audits that substantially meet the Auditor-General's process and reporting quality criteria (as determined by quality assurance review) |
100% | 100% | 100% |
Percentage of audited entities that rate our performance audits as at least "satisfactory" |
At least 85% | 89% | At least 85% |
Percentage of performance audits that are concluded and their findings reported within the expected time period |
At least 75% | 42% | At least 75% |
Percentage of inquiries that meet the Auditor-General's process and reporting quality criteria (as determined by quality assurance review) |
100% | 100% | 100% |
Percentage of requests for inquiries or self-initiated issues which are considered and a view is reached within 4 weeks |
New measure | New measure | At least 90% |
Percentage of pieces of inquiry work (except major inquiries) that are concluded within 6 months |
100% | 80% | At least 90% |
Percentage of major inquiries that are concluded and their findings reported within the expected time period |
At least 75% | 66% | At least 75% |
Percentage of requests under the Local Authorities (Members' Interests) Act 1968 for approval of contracts that are responded to within the expected time period (see Note 1) |
At least 90% | 96% | At least 90% |
Supporting Accountability to Parliament |
|||
This category is intended to achieve: |
|||
Percentage of Parliamentary select committees that rate our advice as at least "satisfactory" |
100% | 100% | 100% |
Percentage of briefing papers that are submitted to select committees by the agreed deadline |
100% | 97% | 100% |
The monthly Controller reports are provided to the Treasury within 5 working days of receiving the Treasury's monthly reports and statements (for September to June) |
All 9 reports | All 9 reports | All 9 reports |
We issue a report to Parliament and the public on the Auditor-General's exercise of the Controller function for each financial year |
At least annually | 3 reports issued | At least annually |
Note 1 - At least 90% within 15 working days from when we receive the necessary information.
End of Year Performance Reporting
Performance information for this appropriation will be reported in the Auditor-General's 2020/21 Annual Report.
Current and Past Policy Initiatives
Policy Initiative | Year of First Impact |
2019/20 Final Budgeted $000 |
2020/21 Budget $000 |
2021/22 Estimated $000 |
2022/23 Estimated $000 |
2023/24 Estimated $000 |
---|---|---|---|---|---|---|
Current Parliament |
||||||
Supporting Accountability to Parliament |
||||||
Investing in technology to support our work | 2020/21 | - | 333 | 668 | 736 | 917 |
Investing in our strategy - increasing impact | 2019/20 | 1,169 | 1,402 | 1,402 | 1,402 | 1,402 |
Investing in our capability | 2019/20 | 491 | 422 | 422 | 422 | 422 |
Performance Audits and Inquiries |
||||||
Investing in technology to support our work | 2020/21 | - | 423 | 850 | 937 | 1,168 |
Addressing demand and improving timeliness | 2019/20 | 1,368 | 2,042 | 2,042 | 2,042 | 2,042 |
Investing in our strategy - increasing impact | 2019/20 | 258 | 310 | 310 | 310 | 310 |
Investing in our capability | 2019/20 | 1,736 | 1,690 | 1,690 | 1,690 | 1,690 |
Reasons for Change in Appropriation
The increase in this appropriation for 2020/21 is due to the policy initiatives listed above.
For the initiatives that commenced in 2019/20, the increases in 2020/21 represent the new ongoing funding levels which will enable the Office to deliver on its strategy in to the future.
The initiatives relating to investment in technology represent the Crown funded part of the Office's information systems strategic plan which will enable the implementation of systems and tools to support the work of the Office.