Estimates of appropriations

Vote Serious Fraud - Justice Sector - Estimates 2020/21

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 2020/21 financial year covering the following:

  • a total of nearly $13 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.

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

     

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.
10,164 10,164 12,509

Total Departmental Output Expenses

10,164 10,164 12,509

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.
175 175 226

Total Departmental Capital Expenditure

175 175 226

Total Annual Appropriations and Forecast Permanent Appropriations

10,339 10,339 12,735

Capital Injection Authorisations#

  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Serious Fraud Office - Capital Injection (M51) - - 126

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
'Protecting New Zealand as a Safe Place to Do Business' initiative Investigation and Prosecution of Serious Financial Crime (M51) - 2,320 2,376 2,435 2,522
Anti-Corruption Work Programme Investigation and Prosecution of Serious Financial Crime (M51) 285 570 579 - -
Total Initiatives   285 2,890 2,955 2,435 2,522

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 8,853 9,418 10,099 10,185 10,164 10,164 12,509 - 12,509 12,574 12,054 12,141
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 204 122 825 205 175 175 226 - 226 140 140 140
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

9,057 9,540 10,924 10,390 10,339 10,339 12,735 - 12,735 12,714 12,194 12,281

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 years information in the Summary of Financial Activity table.

Total Vote: All Appropriations

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

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

Additional expenditure of $490,000 in 2018/19 was due to the implementation of a national Anti-Corruption Work Programme. The Serious Fraud Office 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) cost $91,000. Other items of additional expenditure included assistance to the Vanuatu Office of Public Prosecutors and provision of a multi-agency Electronic Forensic Investigator.

In 2019/20, multi-agency commitments to a national Anti-Corruption Work Programme and an Electronic Forensic investigation service were continued. Assistance was provided to the Vanuatu Office of Public Prosecutors.

An increase in expenditure from 2020/21 will allow the Serious Fraud Office to meet existing demand for increasingly complex financial crime investigations and facilitate organisational resilience. The national Anti-Corruption Work Programme will continue for the next two years to 2021/22 at a cost of less than $600,000 per annum.

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
  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10,164 10,164 12,509
Revenue from the Crown 9,819 9,819 12,424
Revenue from Others 345 345 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
Assessment of Performance 2019/20 2020/21
Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Timeliness: Percentage of complaints evaluated within 30 working days

80% 90%-95% 80%

Quantity: Number of Part 1 enquiries commenced

30-40 26-30 28-32

Timeliness: Percentage of enquiries completed within three months

80% 50%-70% 80%

Quantity: Number of Part 2 investigations commenced

14-16 10-11 10-14

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 6-7 8-10

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 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
'Protecting New Zealand as a Safe Place to Invest and Do Business' initiative 2020/21 - 2,320 2,376 2,435 2,522
Anti-Corruption Work Programme 2018/19 285 570 579 - -
Case and Evidence Management System 2017/18 295 295 295 295 295
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 increase in this appropriation from 2020/21 will enable the Serious Fraud Office to meet existing demand for increasingly complex financial crime investigations, together with building organisational resilience. The Anti-Corruption Work Programme also continues through to the conclusion of 2021/22.

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
  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 129 129 164
Intangibles 46 46 62
Other - - -

Total Appropriation

175 175 226
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 Serious Fraud Office'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
Assessment of Performance 2019/20 2020/21
Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The capital plan developed and managed throughout year

Capital plan for implementation by 30 June 2019 Completed by 30 June 2019 Capital plan for implementation by 30 June 2020
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Serious Fraud Office's 2021 Annual Report that will cover the 2020/21 financial year.

Reasons for Change in Appropriation

The increase in this appropriation for 2020/21 is due to IT infrastructure and forensics tools to meet existing demand for increasingly complex financial crime investigations.

Capital Injections and Movements in Departmental Net Assets
Serious Fraud Office
Details of Net Asset Schedule 2019/20
Estimated Actual
$000
2020/21
Projected
$000
Explanation of Projected Movements in 2020/21
Opening Balance 1,112 1,112  
Capital Injections - 126 Purchase of equipment to meet existing demand for increasingly complex financial crime investigations.
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

1,112 1,238