Vote Social Development - Economic Development and Infrastructure - Estimates 2014/2015

Summary of the Vote#

Overview#

The Minister for Social Development is responsible for the appropriations in the Vote for the 2014/15 financial year covering the following:

• a total of nearly $505 million on Child Youth and Family related services including responding to and preventing child abuse and neglect, managing adoptions and youth justice services
• a total of $639 million on Improved Employment and Social Outcomes Support
• a total of nearly $49 million on services to protect the integrity of the benefit system, including collection of debt
• a total of over $58 million on specialised services, including services for students, seniors and administration of community services and SuperGold cards
• a total of over $75 million on social policy advice and leadership and co-ordination services to support and strengthen families, communities and whanau
• a total of nearly $6 million on planning, correspondence and monitoring
• a total of over $16 million on Children's Action Plan
• a total of over $317 million purchasing services from other organisations, the Children's Commissioner and the Families Commission
• a total of over $104 million on a series of assistance programmes including Housing Support Fund and debt write-downs
• a total of over $17 million on services to support people to access accommodation
• a total of over $718 million on part payment of rent to Social Housing providers
• a total of $11,590 million on payments of New Zealand Superannuation
• a total of $4,409 million on payments for the working age benefits - Jobseeker Support, Sole Parent Support and Supported Living Payment
• a total of $1,780 million on payments for assistance with expenses related to accommodation, disability, hardship and entering or remaining in the workforce
• a total of $591 million on payments to assist people to obtain a qualification, or for youth to continue education/training or obtain work, or to support young parents
• a total of $339 million on other forms of financial assistance such as childcare, care of unsupported children, payments to Australia and special circumstances, and
• a total of $145 million on advances of benefits and other recoverable payments to assist with hardship.

The Minister of Youth Affairs is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:

• a total of nearly $3 million for the delivery of services and leadership to improve services for young people
• a total of nearly $6 million to provide programmes and services to implement the Youth Development Strategy Aotearoa, and
• a total of nearly $900,000 to provide one-off partial funding to Territorial Authorities to respond to emerging needs of young people.

The Minister of Health is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:

• a total of nearly $3 million for administration by committed individuals of the delivery of social sector services for young people in selected locations, and
• a total of over $5 million to fund delivery of social sector services for young people in selected locations where the delivery is led by a non-governmental organisation.

The Minister of Revenue is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:

• a total of over $15 million for management of student loans, and
• a total of $1,684 million on payments for student loans.

The Minister for Disability Issues is responsible for an appropriation in the Vote for the 2014/15 financial year covering the following:

• a total of over $7 million on promoting positive outcomes for disabled people.

The Minister of State Services is responsible for an appropriation in the Vote for the 2014/15 financial year covering the following:

• a total of nearly $3 million on property management centre of expertise.

The Minister of Veterans' Affairs is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:

• a total of $438,000 for processing and payment of Veterans' Pensions, and
• a total of over $156 million on payment of Veterans' Pension.

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

Estimates of Appropriations#

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations

Capital Injection Authorisations

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

1.2 - Trends in the Vote#

Summary of Financial Activity#

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.

Adjustments to the Summary of Financial Activity Table due to Vote Restructuring#

As a consequence of the 2013 Amendment to the Public Finance Act, Multi Class Output Expense Appropriations were converted to Multi-Category Appropriations from 1 July 2014 and establishment of Improved Employment and Social Outcomes Support MCA from 1 Jan 2014.

Transfer of Vote Veterans' Affairs - Social Development to Vote Social Development from 1 July 2014.

Transfer of the part payment of rent to social housing providers and the associated debt write down from Vote Housing to Vote Social Development from 14 April 2014.

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure.

1.3 - Analysis of Significant Trends#

1.3 - Analysis of Significant Trends

Source: Ministry of Social Development

The movements in departmental and non-departmental appropriations in Vote Social Development, which are detailed above, are largely driven by increases in Benefits or Related Expenses, in particular, New Zealand Superannuation. The relatively flat period between 2010/11 and 2012/13 is because reductions in Other Expenses during those years partially offset increases in benefit spending.

Departmental Output Expenses#

Departmental Output Expenses

Source: Ministry of Social Development

Departmental output expenses increased slightly between 2009/10 and 2010/11. One-off funding of $17.200 million in 2009/10 was received by Work and Income to help cope with the demand pressures caused by an increase in the unemployment clients. Child Youth and Family also received new funding of $8.700 million in 2009/10 and $22 million ongoing funding in Budget 2009 for the Fresh Start for Young Offenders programme.

In 2011/12, the expenditure decreased mainly due to a transfer of $31.200 million from Departmental appropriation to Non-departmental output expenses, to assist with the reconfiguring of the Training Opportunities programme.

The Welfare Reform phase two implementation funding of $34.800 million and $10.900 million of additional funding for expanding frontline social work capacity resulted in an increase in the total departmental expenditure in 2012/13.

The trend while relatively stable in 2013/14 and 2014/15 is then mainly decreasing from 2015/16 and future years due to Efficiency Savings.

Non-Departmental Output Expenses#

Non-Departmental Output Expenses

Source: Ministry of Social Development

Non-departmental Output Expenses had a steady increase in funding from 2009/10 with new initiatives, transfer of programmes from other votes and mergers of appropriations and votes. Pathways to Partnership, Supporting a Sustainable NGO Social Services Sector, Community Response Fund and Children's Health Camp transfer from Vote Health were the main reasons for the increase in funding.

From 2013/14 and outyears, there is a significant increase in funding mainly from the transfer of social housing needs assessment from Housing New Zealand Corporation to the Ministry of Social Development. This transfer effective from 14 April 2014 increases the Non-departmental Output Expenses by $142 million in 2013/14 and by over $720 million in the outyears.

Trends in non-departmental other expenses

Source: Ministry of Social Development

Non-departmental other expenses rose steadily in 2009/10 and 2010/11 due to increases in Student Loan initial fair value write-downs and one-off Canterbury Earthquake support subsidy of $260 million.

The expenditure then decreases in 2011/12 largely due to a partial transfer of the initial fair value write-down provision for new student loans to Vote Revenue from 1 April 2012 and the completion of the one-off Canterbury Earthquake support payments of $260 million in 2010/11.

The expenditure decreases significantly in 2012/13 as the responsibility for the initial fair value write-down provision for new student loans was fully transferred to Vote Revenue. The expenditure levels from 2013/14 and out years are relatively stable.

Non-Departmental Capital Expenditure#

Non-Departmental Capital Expenditure

Source: Ministry of Social Development

The majority (about 90%) of Non-departmental Capital Expenditure is for Student Loans. Most expenditure (about 60%) occurs in the first four months of each calendar year when course fees are paid. Expenditure grew between 2009/10 and 2011/12 as more people took up study in response to the recession. Expenditure reduced in 2012/13 as economic conditions have improved.

Growth in expenditure over the next five years is expected to be driven by a higher loan amount per borrower because of higher course fees and living costs; there is also expected to be some growth in the number of borrowers.

The Recoverable Assistance item makes up the remainder of Non-departmental Capital Expenditure. Recoverable Assistance expenditure grew in 2009/10 as the recession impacted on household budgets. Expenditure eased in 2010/11 and 2012/13, and is expected to remain between $140 million and $152 million per annum over the next five years.

Non-Departmental Benefits or Related Expenses#

Non-Departmental Benefits or Related Expenses

Source: Ministry of Social Development

Expenditure on Vote Social Development BoRE increased by $1,972.040 million from $15,989.853 million in 2009/10 to $17,961.893 million in 2012/13. This increase in expenditure was largely caused by rising expenditure on New Zealand Superannuation, which increased by $1,945.148 million over the period. New Zealand Superannuation accounts for over half of total BoRE expenditure, and this proportion has risen from 52% in 2009/10 to 57% in 2012/13. Spending on New Zealand Superannuation as a proportion of total BoRE spending is expected to rise to 65% by 2017/18.

During the period 2009/10 to 2010/11, the combined expenditure on main benefits (Unemployment Benefit and Emergency Benefit, Domestic Purposes Benefit, Sickness Benefit, Invalid's Benefit, and Widow's Benefit) rose. The increased main benefit expenditure was driven by the combined impact of the global financial crisis and a historically high population of youth studying or unable to find work. However, between 2010/11 and 2012/13 main benefit expenditure has declined as economic conditions have improved.

Over the period 2013/14 to 2017/18, spending is expected to increase by $2,740 million for New Zealand Superannuation and to decrease by $103.560 million for total BoRE (excluding New Zealand Superannuation). Of the expected growth in total BoRE spending between 2013/14 and 2017/18, about 64% is caused by cumulative inflation adjustments and adjustments for growth in average wages made each April.

New Zealand Superannuation#

New Zealand Superannuation

Source: Ministry of Social Development

Annual expenditure increased by $1,945 million from $8,290 million in 2009/10 to $10,235 million in 2012/13. It is expected to be $13,643 million in 2017/18. Annual inflation adjustments and adjustments for growth in average wages typically account for about 50% of total annual changes in spending on New Zealand Superannuation.

The number of New Zealand Superannuation recipients grew by 13% (or about 72,100 recipients) between 2009/10 and 2012/13. Annual growth in eligible recipients accelerated in line with the post-World War II increase in births and peaked in 2012/13. The number of recipients is expected to continue to grow at a declining rate to reach an average of 736,300 recipients by 2017/18.

Over the full nine year period shown in Figure 7, the number of recipients is expected to increase by 196,100 or 36%, while annual expenditure is expected to increase by nearly $5,353 million or 65%. Of the expected growth in spending between 2013/14 and 2017/18, 49% is the result of accumulated inflation and wage adjustments.

Accommodation Assistance#

Accommodation Assistance

Source: Ministry of Social Development

Annual expenditure increased by $23.705 million from $1,154 million in 2009/10 to $1,177 million in 2012/13. It is expected to fall over the next five years to reach $1,145 million in 2017/18.

The number of recipients receiving Accommodation Assistance typically follows the trends in main benefits (Jobseeker Support, Sole Parent Support and Supported Living Payment). The number of recipients peaked during 2010/11 at an average of nearly 320,000, and is expected to fall to around 296,700 in 2013/14. Numbers are expected to continue falling over the next five years, to 285,800 in 2017/18 as the number of people receiving a main benefit declines.

The average amount of Accommodation Assistance paid per recipient increased between 2009/10 and 2013/14, and is expected to continue rising over the forecast horizon as accommodation costs rise.

Jobseeker Support and Emergency Benefit#

Jobseeker Support and Emergency Benefit

Source: Ministry of Social Development

This is a new appropriation that began on 15 July 2013. This appropriation replaced the Sickness Benefit, Unemployment and Emergency Benefit, and parts of the Domestic Purposes Benefit and Widow's Benefit appropriations, which ceased on 15 July 2013. The 2014/15 year is the first full financial year. The future trends in the number of recipients are expected to be similar to the Unemployment and Emergency Benefit, which is affected by economic conditions.

Expenditure for this appropriation is expected to fall from $1,693 million in 2013/14 to $1,569 million in 2017/18, mainly reflecting an expected decline in the number of recipients over this period. The number of recipients is expected to fall from an average of 137,500 in 2013/14 to an average of 113,300 by 2017/18 as economic conditions improve.

Sole Parent Support#

Sole Parent Support

Source: Ministry of Social Development

This is a new appropriation that began on 15 July 2013. This appropriation replaced parts of Domestic Purposes Benefit and Widow's Benefit. The 2014/15 year is the first full financial year. The future trends in the number of recipients are expected to be similar to the Domestic Purposes Benefit, as this is the majority of the appropriation.

Expenditure for this appropriation is expected to rise from $1,225 million in 2013/14 to $1,285 million in 2017/18, reflecting the impact of inflation adjustments exceeding the impact of declining benefit numbers. The number of recipients is expected to decline from an average of 78,200 in 2013/14 to an average of 73,100 by 2017/18 as the labour market for sole parents improves.

Supported Living Payment#

Supported Living Payment

Source: Ministry of Social Development

This is a new appropriation that began on 15 July 2013. This appropriation replaced the Invalid's Benefit and the Caring for Sick or Infirm component of the Domestic Purposes Benefit. The 2014/15 year is the first full financial year. The future trends in the number of recipients are expected to be similar to Invalid's Benefit, as previous Invalid's Benefit recipients form the majority of the appropriation.

Expenditure for this appropriation is expected to rise from $1,422 million in 2013/14 to $1,591 million in 2017/18, reflecting the impact of inflation adjustments and an expected rise in the number of recipients over 2014/15. The number of recipients is expected to rise from an average of 96,400 in 2013/14 to an average of 97,700 in 2014/15. The number of recipients is expected to remain relatively flat from 2014/15 until 2017/18, when it is expected to reach an average of 97,000.

1.4 - Reconciliation of Changes in Appropriation Structure#

The tables below show changes in appropriation structure relating to the introduction of the Improved Employment and Social Outcomes Support MCA, transitioning MCOA's to MCA's, merging Vote Veterans' Affairs - Social Development into Vote Social Development and the transfer of Social Housing functions into Vote Social Development.

The introduction of the new Multi-Category Expenses and Capital Expenditure: Improved Employment and Social Outcomes Support MCA structure in Vote Social Development to facilitate the Investment Approach for working age benefits from 1 January 2014 has resulted in changes to the appropriation structure as noted in the table. Existing appropriations Tailored Sets of Services to Help People into Work or Achieve Independence and Employment Assistance mainly funded the new MCA from 1 January 2014 and outyears and will both cease to exist from 1 July 2014.

Transitioning multi-class output appropriations (MCOAs) to multi-category appropriations (MCAs) for Budget 2014 as a result of changes to the Public Finance Act 1989.

This table shows the disestablishment of Vote Veterans' Affairs - Social Development and the transfer into Vote Social Development from 1 July 2014.

Transfer of the part payment of rent to social housing providers and the associated debt write down from Vote Housing to Vote Social Development from 14 April 2014.

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administration of Trialling New Approaches to Social Sector Change (M36)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve new and innovative ways of tackling social issues among targeted groups.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Launched by the Minister for the Community and Voluntary Sector in October 2010, the Code of Funding Practice aims to assist government agencies and non-profit organisations when entering into government funding arrangements. It sets out seven core codes, 22 key criteria and a range of success indicators.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This appropriation increased by $1.485 million to $2.867 million in 2014/15. This increase is due to new funding of $2.042 million for extension of Social Sector Trials to 30 June 2015, partly offset by a reduction of $557,000 with one-off funding ending in 2013/14. 

Adoption Services (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the legal adoption of children by approved parents and to provide access to information on adoptions.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - Under section 9(4)(c) of the Adult Adoption Information Act 1985.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Care and Protection Services (M63)#

Scope of Appropriation#

Expenses and Revenue#

Components of the Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve safety, security and wellbeing for children who have been or are at risk of harm.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - The timeliness of Family Court planned reviews is directed by the Family Court (eg, children under seven years old have planned reviews every six months or as directed by the Court. Children and young people over seven years old have planned reviews every 12 months or as directed by the Court).

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation increased by $13.009 million to $362.315 million in 2014/15 mainly due to new funding for the Care Strategy of $13.659 million and Vulnerable Children Bill Implementation of $2.532 million. This was partly offset by a technical adjustment of $2.950 million in 2013/14 to reflect change in cost drivers used to allocate costs.

Children's Action Plan (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve fewer vulnerable children by increasing the protection of children who are at risk of maltreatment.

How Performance will be Assessed and End of Year Reporting Requirements#

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation increased by $10.660 million to $16.350 million for 2014/15. The increase mainly relates to:

• new cross-agency budget initiative of $16.350 million in 2014/15 which included a transfer of $1.500 million of funding from 2013/14.

The above offset by:

• Drawdown of funding from the Vulnerable Children's Contingency fund in 2013/14 of $7.380 million.

Collection of Balances Owed by Former Clients and Non-beneficiaries (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the timely and efficient collection of balances owed by former clients and non-beneficiaries.

How Performance will be Assessed and End of Year Reporting Requirements#

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Conditions on Use of Appropriation#

Development and Funding of Community Services (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to support non-government organisations to meet their contractual obligations.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - Level 1: Providers delivering care-based services.

Note 2 - Level 2: Providers delivering services under Level 2 are those that have high risk/vulnerable clients and require intensive support.

Note 3 - Level 3: Providers delivering services under Level 3 are those that have medium-risk clients and require short-term or early interventions (including OSCAR).

Note 4 - Level 4: Providers delivering services to low-risk client group or general population - low-level support, usually delivered in a group setting e.g. co-ordination services, training or employment services.

Note 5 - 'Review frequency' means:

• for Level 3 community service providers: every two years
• for Level 3 OSCAR providers: every two to five years depending on risk
• for Level 4 providers: every two years via provider self-assessment.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Family and Community Services (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve improved access to advice and early social support services available to communities, young people and families.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - These projects are funded through the SKIP Local Initiatives Fund. Progress reports are used to ensure projects are on track, with final reporting at the completion of the contract including whether objectives are being met.

Note 2 - This is in line with MSD's Investing in Services for Outcomes (ISO) approach which aims to streamline the contracting process to consolidate and reduce the number of contracts providers have.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation has increased by $2.059 million to $37.951 million in 2014/15. This increase mainly relates to the Community Response Fund Extension transfer of $2.700 million to the Non-departmental Output expense, Strong Families being completed in 2013/14.

Income Support and Assistance to Seniors (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the efficient and accurate assessment and payment of entitlements to older people so that the correct amount is paid to the correct person on time.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - In 2014/15 the Ministry expects to survey 2,000 clients.

Note 2 - An assessment of entitlement is deemed accurate when the correct person is receiving the correct entitlement, at the correct rate from the correct commencement date.

Note 3 - This combines timeliness measures for all activities in this output expense. Standard timeframes for each component are as follows:

• five working days for New Zealand Superannuation and Emergency Benefit (for people over 65 years of age) entitlement assessments completed for payment in New Zealand
• 20 working days for New Zealand Superannuation entitlement assessments completed for payments overseas and other New Zealand entitlements paid overseas
• 20 working days for Residential Subsidy entitlement assessments.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Management of Student Loans (M57)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to support eligible tertiary students to overcome financial barriers to undertake tertiary study.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - Students who say they are 'satisfied' or 'very satisfied' with StudyLink's service on a scale of 'very dissatisfied', 'dissatisfied', 'neither/nor', 'satisfied' or 'very satisfied'.

Note 2 - Within the previous 14 days.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation decreased by $735,000 to $15.502 million in 2014/15. This decrease relates to:

• decrease of $830,000 caused by a technical change to baselines in 2013/14 to meet cost driver changes
• reduction of $318,000 in 2014/15 for the Funding to Deliver Changes to Loan Eligibility for Entry-Level Education
• decrease of $46,000 from Efficiency Savings.

The above is offset by:

• new funding for enacting changes to Loan Eligibility for Foundation-Level Education in 2014/15 of $459,000.

Management of Student Support, excluding Student Loans (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to support eligible tertiary students to overcome financial barriers to undertake tertiary study.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - Students who say they are 'satisfied' or 'very satisfied' with StudyLink's service on a scale of 'very dissatisfied', 'dissatisfied', 'neither/nor', 'satisfied' or 'very satisfied'.

Note 2 - Within the previous 14 days.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation decreased by $1.671 million to $15.431 million in 2014/15. The decrease mainly relates to one-off funding and technical changes in 2013/14 as follows:

• Extending the Student Support Stand-Down Period for Permanent Residents $380,000
• Reducing Student Allowances Eligibility for Students Aged 40 and Over $460,000
• Removing Student Allowance Eligibility for those Aged 65 and Over $340,000
• technical adjustment to meet changes in cost drivers $280,000
• one-off funding transfer from Non-departmental Output Expense, Student Placement Services, to enhance the Students Text Messaging Service $175,000.

Planning, Correspondence and Monitoring (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to support Ministers to discharge their portfolio responsibilities.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - 'Standard met' means all the appointments identified in the report to Cabinet at the start of each calendar year are actioned as agreed with the Minister.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Prevention Services (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to raise awareness and capability in the community on how to respond to and prevent child abuse and neglect.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - This will be measured by way of an evaluation to be completed by participants in the workshops.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Processing and Payment of Veterans' Pensions (M75)#

Scope of Appropriation#

Expenses and Revenue#

Comparators for Restructured Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to support veterans to maintain their independence and social participation.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - An assessment of entitlement is deemed accurate when the right person is receiving the correct entitlement, at the correct rate from the correct commencement.

Note 2 - Five working days for Veterans' Pension entitlement assessments for payment in New Zealand, and 20 working days for Veterans' Pension entitlement assessments for payment overseas.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Reasons for Change in Appropriation#

This appropriation has been transferred from Vote Veterans' Affairs - Social Development.

Conditions on Use of Appropriation#

Promoting Positive Outcomes for Disabled People (M23)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to reduce barriers to participation in society for people with disabilities, so that disabled people experience the same rights as other New Zealanders.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - The Think Differently partners include local authorities, NGOs and charitable organisations that promote and encourage positive attitudes and behaviours towards disabled people in their communities.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation increased by $1.300 million to $7.085 million in 2014/15. This is mainly due to additional funding for the promotion and maintenance of New Zealand Sign Language

Property Management Centre of Expertise (M66)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve improved property management practices across government and support agencies to manage property in more effective and efficient ways.

How Performance will be Assessed and End of Year Reporting Requirements#

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation has decreased by $1.100 million to $2.755 million in 2014/15. This is due to a one-off technical change to the appropriation in 2013/14, to reflect increased levels of activity performed on behalf of other agencies for business cases and associated development agreements.

Services to Protect the Integrity of the Benefit System and Income Related Rent Subsidies (M63)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to protect the integrity of the benefit system and Income Related Rent subsidy payments.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - This includes the increase, reduction or cessation of entitlement to benefit as a direct result of the investigation.

Note 2 - This includes cases referred by all sources for further enquiry, for example fraud allegations and data matches. The 12-month period commences from the time that the Ministry receives information in an accessible and readable format.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Services to Support People to Access Accommodation (M63)#

Scope of Appropriation#

Expenses and Revenue#

Comparators for Restructured Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to support more people who are eligible for social housing to have their housing needs met and helping those who are capable to move towards housing independence.

How Performance will be Assessed and End of Year Reporting Requirements#

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This is a new appropriation for 2014/15.

Youth Development (M77)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve an increase in the capability and opportunities for young people to contribute positively to their communities.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - This measure accounts for the number of young people participating in programmes and activities supported by the Ministry of Youth Development that involve them engaging in decision-making aspects at local and national levels, such as funding selection panels. Whenever practicable, this measure will be assessed through feedback from youth participants.

Note 2 - Two one-off events have increased the estimated actual standard for 2013/14: Youth Parliament (which is held once in each Parliamentary Term) in July 2013 had 139 participants; and the Greater Christchurch Youth Resilience and Wellbeing Survey, which closed on 13 December 2013, had 3,377 participants.

Note 3 - Launched by the Minister for the Community and Voluntary Sector in October 2010, the Code of Funding Practice aims to assist government agencies and non-profit organisations when entering into government funding arrangements. It sets out seven core codes, 22 key criteria and a range of success indicators.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Youth Justice Services (M63)#

Scope of Appropriation#

Expenses and Revenue#

Components of the Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to address offending by children and young people and to reduce the likelihood of reoffending.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - Section 249(6) of the Children, Young Persons, and Their Families Act 1989 enables a Family Group Conference to be delayed for special reasons. A Youth Justice Co-ordinator may hold a Family Group Conference outside the normal timeframes or adjourn to a later date due to:

• the unavailability of key whanau (especially the custodial parent), the child or young person, a victim or the youth advocate
• a delay in receiving information critical for the Family Group Conference to consider, and
• the Family Group Conference requesting an adjournment to enable its members to come to an agreement.

Note 2 - Section 314 of the Children, Young Persons, and Their Families Act 1989 requires that a report be produced prior to the release of a young person serving a custodial order under section 311, to enable a Youth Court Judge to determine whether a young person should be granted remission and released from the residence before the expiry of the full Supervision with Residence Order. Where the young person was subject to 'split sentencing' (that is, the length of post-release supervision to be determined at the time of release), the conditions for the post-release Supervision Plan are also presented to the court at the time the early release report is presented.

There may be delays in presenting the requested supervision conditions if:

• it is unclear where the young person will live at the time of the report being presented
• the application for early release is granted despite a recommendation by the residence that no remission be granted.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation increased by $1.834 million to $131.380 million in 2014/15. This increase relates to:

• increase due to a technical change to baselines to meet cost driver changes resulting in a one-off reduction in funding in 2013/14 of $2.350 million.

The above offset by:

• decrease due to efficiency savings of $516,000.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Social Development - Capital Expenditure PLA (M63)#

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the replacement or upgrade of assets in support of the delivery of the Ministry's services.

How Performance will be Assessed and End of Year Reporting Requirements

Expenditure is in accordance with the Ministry's ten year capital plan.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Reasons for Change in Appropriation

This appropriation increased by $11.228 million to $80.190 million for 2014/15. This increase mainly relates to new capital funding to implement the transfer of Social Housing Needs Assessment.

Capital Injections and Movements in Departmental Net Assets

Ministry of Social Development

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Assistance to Disadvantaged Persons (M63)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve increased opportunities for disadvantaged individuals to fully participate in society.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s.15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for a non-departmental output expense is less than $5 million.

Service Providers

Children's Commissioner (M63)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to improve the wellbeing of children through the provision of independent advocacy for the interests of children, and independent monitoring, advice and assurance to Ministers about the services delivered to children under the Children, Young Persons, and Their Families Act 1989.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - This figure includes nine visits to Child, Youth and Family residences under the Children, Young Persons, and Their Families Act 1989 and inspections in the Children's Commissioner's role as the National Preventive Mechanism.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Office of the Children's Commissioner in its Annual Report. 

Current and Past Policy Initiatives#

Connected Communities (M63)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to reduce the number of vulnerable children and families.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - Mauri Ora is a practice model that uses a Maori conceptual framework to provide practitioners with the appropriate skills and tools to work proactively and positively with Maori whanau.

Note 2 - 'Other relevant training' includes training that helps practitioners working with family violence develop other work-related skills, including facilitation, supervision, management and peer support.

Note 3 - This includes providing advice, assistance, and funding to local initiatives, targeted at whanau and hapu, which foster leadership and aim to change attitudes and behaviours towards family violence. It also includes E Tu Whanau having a presence at local events.

Note 4 - A TARP is a unit of advertising based on the number of people expected to view an advertisement. An advertisement screened at peak or primetime will expend more TARPs than one screened off-peak.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister for Social Development in the Vote Social Development Non-Departmental Appropriations Report.

Service Providers#

The table presents the top five service providers who have funding arrangements with the Ministry of Social Development under this output as at 20 March 2014. The budget amounts included for 2014/15 reflect the proposed funding plans with the final contracted amounts to providers to be confirmed once the contract negotiations are complete. Funding to other providers ranged from $1,700 to $400,000.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation decreased by $6.570 million to $7.477 million in 2014/15. The decrease is due to:

• the cessation of one-off funding for the Non-Government Organisation and Christchurch Support Funding in 2013/14 of $4.900 million
• one-off funding for Marae CBD and Community Hub Demonstration sites in 2013/14 $1.100 million
• one-off funding for Expanding the Reach of Microfinance in 2013/14 $50,000
• technical change to baseline in 2014/15 with a transfer of $520,000 to Vote Internal Affairs for Settling In programme.

Counselling and Rehabilitation Services (M63)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve improved wellbeing for children, young people and families that have suffered harm or who are at risk of offending.

How Performance will be Assessed and End of Year Reporting Requirements#

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister for Social Development in the Vote Social Development Non-Departmental Appropriations Report.

Service Providers#