Estimates of appropriations

Vote Serious Fraud - Justice Sector - Estimates 2019/20

Formats and related files

Vote Serious Fraud#

APPROPRIATION MINISTER(S): Minister of Police (M51)

APPROPRIATION ADMINISTRATOR: Serious Fraud Office

RESPONSIBLE MINISTER FOR SERIOUS FRAUD OFFICE: Minister of Police

Overview of the Vote#

The Minister of Police is responsible for appropriations in Vote Serious Fraud for the 2019/20 financial year covering the following:

  • a total of nearly $10 million for detecting, investigating and prosecuting cases of serious financial crime. This includes activities directed at making the commission of financial crimes more difficult, and its detection and prosecution more effective, and
  • a total of $100,000 for the purchase or development of assets and intangibles.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2018/19 2019/20
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Investigation and Prosecution of Serious Financial Crime (M51)

This appropriation is limited to detecting, investigating and prosecuting serious financial crimes by the Serious Fraud Office, and includes activities directed at making the commission of financial crimes more difficult, and detection and prosecution more effective.
10,742 10,592 9,619

Total Departmental Output Expenses

10,742 10,592 9,619

Departmental Capital Expenditure

     

Serious Fraud Office - Capital Expenditure PLA (M51)

This appropriation is limited to the purchase or development of assets by and for the use of the Serious Fraud Office, as authorised by section 24(1) of the Public Finance Act 1989.
250 250 100

Total Departmental Capital Expenditure

250 250 100

Total Annual Appropriations and Forecast Permanent Appropriations

10,992 10,842 9,719

Capital Injection Authorisations#

  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Serious Fraud Office - Capital Injection (M51) - - -

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy Initiative Appropriation 2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
Anti-Corruption Work Programme Investigation and Prosecution of Serious Financial Crime (M51) 490 - - - -
Total Initiatives   490        

1.2 - Trends in the Vote

Summary of Financial Activity
  2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
  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 8,945 8,853 9,418 10,099 10,742 10,592 9,619 - 9,619 9,619 9,619 9,619
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 283 204 122 825 250 250 100 - 100 100 140 140
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

9,228 9,057 9,540 10,924 10,992 10,842 9,719 - 9,719 9,719 9,759 9,759

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

Total Vote: All Appropriations

Increased Output Expenses in 2016/17 were the result of additional personnel costs of $456,000. This was due to in part to more staff vacancies being filled throughout the year and cover for staff on secondment to other government agencies. Another contributing factor was the biennial Fraud and Corruption Conference that cost $88,000.

A Budget 2017/18 initiative for a Case and Evidence Management System provided for $730,000 operating and $660,000 capital in 2017/18, with an additional $284,000 operating expenditure in each outyear thereafter.

In 2018/19, additional expenditure of $490,000 was due to the implementation of a national Anti-Corruption Work Programme. The Serious Fraud Office (SFO) hosted the biennial Fraud and Corruption Conference and an Economic Crime Agencies Network meeting with a combined cost of $133,000. The New Zealand contribution to the International Anti-Corruption Co-ordination Centre (IACCC) continued in 2018/19 costing $91,000. Other items of additional expenditure included assistance to the Vanuatu Office of Public Prosecutions and provision of a multi-agency Electronic Forensic Investigator.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Investigation and Prosecution of Serious Financial Crime (M51)
Scope of Appropriation
This appropriation is limited to detecting, investigating and prosecuting serious financial crimes by the Serious Fraud Office, and includes activities directed at making the commission of financial crimes more difficult, and detection and prosecution more effective.
Expenses and Revenue
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,742 10,592 9,619
Revenue from the Crown 10,110 10,110 9,534
Revenue from Others 632 482 85
What is Intended to be Achieved with this Appropriation

This appropriation is intended to increase business and investor confidence in the integrity of New Zealand's financial markets and increase the public and victims' confidence that those who commit financial crime are held to account in order to achieve the outcome of a confident business environment and a just society that is largely free of serious financial crime.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Timeliness: Percentage of complaints evaluated within 30 working days

80% 80%-90% 80%

Quantity: Number of Part 1 enquiries commenced

30-40 28-30 30-40

Timeliness: Percentage of enquiries completed within three months

80% 60%-80% 80%

Quantity: Number of Part 2 investigations commenced

14-16 13-14 14-16

Timeliness: Percentage of Part 2 investigations completed within targeted time (see Note 1)

Cat.A: 50% within 18mths Cat.B: 60% within 12mths Cat.A:50-60% under18mths Cat.B: 40-60% under12mths Cat.A: 50% within 18mths Cat.B: 60% within 12mths

Quality: Percentage of formal post-investigation reviews that meet SFO quality criteria

90% 90% 90%

Quantity: Number of cases brought to prosecution

10-12 8-10 10-12

Quality: Percentage of defendants convicted

80% 100% 80%

Quality: Percentage of formal post-prosecution reviews that meet SFO quality criteria

90% 90% 90%

Note 1 - Category A cases are those that involve high complexity. For example a case that may contain one or more of the following: a significant number of victims, large scale loss or a long period of alleged offending; multiple alleged suspects; inter-agency cooperation; international assistance; legal complexity.

Category B cases are all other cases.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Serious Fraud Office's 2019/20 Annual Report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
Anti-Corruption Work Programme 2018/19 490 - - - -
Case and Evidence Management System 2017/18 295 295 295 295 295
New Zealand contribution to the International Anti-Corruption Co-ordination Centre initiative 2017/18 91 - - - -
Share of costs for Budget 2015 whole-of-government initiatives 2015/16 (15) (15) (15) (15) (15)
'Right Sizing' the Serious Fraud Office 2015/16 2,030 2,030 2,030 2,030 2,030
Reasons for Change in Appropriation

The decrease in this appropriation for 2019/20 is due to a return to base operating expenditure following completion of prior year initiatives, being the Anti-Corruption Work Programme and national contribution to the International Anti-Corruption Co-ordination Centre.

2.3 - Departmental Capital Expenditure and Capital Injections

Serious Fraud Office - Capital Expenditure PLA (M51)
Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the Serious Fraud Office, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 240 240 90
Intangibles 10 10 10
Other - - -

Total Appropriation

250 250 100
What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure that assets and intangibles required to support the delivery of the SFO's services are routinely renewed and maintained. Expenditure is in accordance with the SFO's capital expenditure plan.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The capital plan developed and managed throughout year

Capital plan for implementation by 30 June 2018 Completed by 30 June 2018 Capital plan for implementation by 30 June 2019
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Serious Fraud Office's 2019/20 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2019/20 is due to the variable amount and cost of assets required to be replaced in any given year in accordance with the asset replacement programme.

Capital Injections and Movements in Departmental Net Assets

Serious Fraud Office

Details of Net Asset Schedule 2018/19
Estimated Actual
$000
2019/20
Projected
$000
Explanation of Projected Movements in 2019/20
Opening Balance 1,112 1,112  
Capital Injections - -  
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

1,112 1,112