Estimates of appropriations

Vote State Services - Finance and Government Administration Sector - Estimates 2018/19

Vote State Services#

APPROPRIATION MINISTER(S): Minister for Social Development (M63), Minister of State Services (M66)

APPROPRIATION ADMINISTRATOR: State Services Commission

RESPONSIBLE MINISTER FOR STATE SERVICES COMMISSION: Minister of State Services

Overview of the Vote#

The Minister of State Services is responsible for appropriations in Vote State Services for the 2018/19 financial year covering the following:

  • a total of nearly $30 million to support decision-making by Ministers on Government policy matters and leading the Public Management System to ensure that the State services are collectively responsible and work together
  • a total of over $16 million for the remuneration and related employment costs of chief executives employed by the State Services Commission
  • a total of $200,000 for payments associated with New Zealand's membership of the Open Government Partnership
  • a total of $100,000 for departmental capital expenditure for minor furniture replacements, and
  • a total of $7,000 for the settlement of legal liabilities in relation to disestablished government departments and other Crown Settlements.

The Minister for Social Development is responsible for appropriations in Vote State Services for the 2018/19 financial year covering the following:

  • a total of over $13 million for identifying where and how to implement a social investment approach, how well it delivers such an approach and providing tools and support to agencies to assist them implement a social investment approach, and to undertake phase two of the Data Exchange project.

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2017/18 2018/19
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Designing and Implementing Social Investment (M63)

This appropriation is limited to identifying where and how to implement a social investment approach, assessing how well a social investment approach is being delivered in these areas, and providing tools and support to agencies to assist them in implementing a social investment approach.
15,011 13,569 13,428

Place-based Initiatives - National Support (M63)

This appropriation is limited to providing support and evaluation across place-based initiatives.
1,220 1,220 -

Place-based Initiatives - South Auckland Social Investment Board (M66)

This appropriation is limited to the delivery of services as part of the Social Investment Plan for South Auckland and to the operational support of the South Auckland Social Investment Board.
2,845 2,845 -

Total Departmental Output Expenses

19,076 17,634 13,428

Departmental Capital Expenditure

     

State Services Commission - Capital Expenditure PLA (M66)

This appropriation is limited to the purchase or development of assets by and for the use of the State Services Commission, as authorised by section 24(1) of the Public Finance Act 1989.
1,033 1,140 100

Total Departmental Capital Expenditure

1,033 1,140 100

Non-Departmental Other Expenses

     

Open Government Partnership (M66)

This appropriation is limited to payments associated with New Zealand's membership of the Open Government Partnership.
200 200 200

Remuneration and Related Employment Costs of Chief Executives (M66)

This appropriation is limited to the remuneration and costs relating to the employment of chief executives employed by the State Services Commissioner.
16,015 15,242 16,460

Settlement of Legal Liabilities (M66)

The settlement of legal liabilities incurred by now-disestablished government departments and other Crown settlements.
7 - 7

Total Non-Departmental Other Expenses

16,222 15,442 16,667

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Leadership of the Public Sector MCA (M66)

The single overarching purpose of this appropriation is to support decision making by Ministers on Government policy matters and leading the Public Management System.
30,601 30,601 29,823

Departmental Output Expenses

     

Leadership of the Public Management System

This category is limited to ensuring the Public Management System has the design, capability and performance to deliver public services.
25,074 25,074 24,295

Policy Advice

This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to the Public Management System.
5,527 5,527 5,528

Total Multi-Category Expenses and Capital Expenditure

30,601 30,601 29,823

Total Annual and Permanent Appropriations

66,932 64,817 60,018

Capital Injection Authorisations#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
State Services Commission - Capital Injection (M66) 1,500 1,500 -

Supporting Information#

Part 1 - Vote as a Whole#

This part provides trend information for the vote.

Summary of Financial Activity#

  2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
  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 9,628 9,628 9,628 10,783 19,076 17,634 13,428 - 13,428 13,445 9,585 8,258
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 11,583 12,256 12,815 14,081 16,222 15,442 - 16,667 16,667 16,097 15,847 15,847
Capital Expenditure - 79 161 209 1,033 1,140 100 - 100 100 100 100
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 27,524 28,227 28,033 28,547 30,601 30,601 29,823 - 29,823 29,332 29,339 29,339
Other Expenses - 161 130 - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

48,735 50,351 50,767 53,620 66,932 64,817 43,351 16,667 60,018 58,974 54,871 53,544

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 11,719 12,294 12,710 12,347 15,766 15,568 N/A 16,211 16,211 15,641 15,391 15,391
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

11,719 12,294 12,710 12,347 15,766 15,568 N/A 16,211 16,211 15,641 15,391 15,391

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 Appropriations in the Details of Appropriations and Capital Injections.

Details of significant movements within each appropriation type are detailed below:

Appropriations#

Output Expenses

From 2013/14 to 2015/16 output expenses were relatively constant.

The increase in 2016/17 reflected time-limited funding of $1.155 million for a place-based appropriation for the South Auckland Social Investment Board.

The increase in 2017/18 reflects:

  • An increase of $1.690 million for year two funding for a time-limited place-based initiative relating to the South Auckland Social Investment Board.
  • An increase of $5.383 million in funding for the Social Investment Agency, mainly due to a drawdown of contingency funding for phase two of the Data Exchange project.
  • Funding for a time-limited place-based initiative administered by the Social Investment Agency totalling $1.220 million for 2017/18 only.

In 2018/19 there is a decrease in output expenses, as there are no longer any time-limited place-based initiatives. Funding for 2018/19 reflects the Social Investment Agency's core appropriation and phase two of the Data Exchange programme.

Other Expenses

The increase in 2017/18 from 2016/17 reflects an increase in the number of chief executives as a result of an increase in the number of agencies.

The figures in outyears reflect the level of anticipated chief executives' remuneration and other related employment costs, assuming a full complement of chief executives employed each financial year. The remuneration is based on staggered increases on appointment, reappointment or midterm reviews at a similar level to that provided for in the wider State sector; and provides for full earn-back payments and restricted exceptional performance payments.

Capital Expenditure

Capital expenditure in 2017/18 is to design and implement a workspace that supports the new operating model and provides for easy sharing of information and the ability to work in a mobile and flexible way.

Capital expenditure in 2018/19 reflects the usual levels of forecast capital expenditure.

Multi-Category Output Expenses

The increase in 2014/15 related to the inquiry into the escape of Phillip Smith while on release from Springhill Prison.

The increase in 2016/17 reflected an expense transfer from the 2015/16 financial year together with gross up of expenses relating to higher departmental revenue from secondments.

The increase in 2017/18 reflects the transition of the Leadership Development Centre functions into the State Services Commission. There are also costs associated with the new departmental agency, the Social Investment Agency, continuing work around the social investment approach.

The decrease in 2018/19 is due to the 2017/18 baseline having been inflated by an expense transfer from 2016/17.

Multi-Category Other Expenses

The decrease in 2016/17 was due to the inquiry into the escape of Phillip Smith being completed and tabled in 2015/16.

Crown Revenue and Capital Receipts#

Non-Tax Revenue

The increase in 2016/17 was due to higher recoveries of chief executives salaries as a result of a higher number of reappointments of chief executives than in 2015/16, and the associated remuneration and employment related costs.

The increase in 2017/18 is due to an increase in the number of chief executives as a result on an increase in the number of agencies.

1.4 - Reconciliation of Changes in Appropriation Structure#

    Old Structure New Structure
2017/18 Appropriations
in the 2017/18 Structure
2017/18
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2017/18 Appropriations
in the 2018/19 Structure
2017/18
(Restated)
$000
2018/19
$000

Multi-Category Expenses and Capital Expenditure

     

Multi-Category Expenses and Capital Expenditure

   
Policy Advice and Management of the Public Management System 30,601 Renamed - Policy Advice and Leadership of the Public Sector 30,601 29,823

Departmental Output Expenses

     

Departmental Output Expenses

   
Management of the Public Management System 25,074 Renamed - Leadership of the Public Management System 25,074 29,823
Public Management System Policy Advice 5,527 Renamed - Policy Advice 5,527  
Total changes in appropriations 30,601   -   30,601 29,823

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#

Designing and Implementing Social Investment (M63)

Scope of Appropriation
This appropriation is limited to identifying where and how to implement a social investment approach, assessing how well a social investment approach is being delivered in these areas, and providing tools and support to agencies to assist them in implementing a social investment approach.
Expenses and Revenue
  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,011 13,569 13,428
Revenue from the Crown 15,011 13,569 13,428
Revenue from Others - - -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of tools and infrastructure by the Social Investment Agency required to enable a collective social investment approach allowing investment in what works to improve the lives of New Zealanders, creating lasting change.

How Performance will be Assessed and End of Year Reporting Requirements
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The satisfaction rating given by the Minister for the quality and timeliness of advice

At least 70% 70% At least 70%

A survey of Social Sector agencies indicates that the advice, support and tools provided by the Social Investment Agency have been useful

Achieved Measure removed n/a

A survey of Social Sector agencies shows an improvement in the capability of agencies to implement a social investment approach with the baseline to be established in 2017/18

Achieved Measure removed n/a

The combined number of agencies and NGO's on-boarded to the Data Exchange will not be less than 80% of the number committed

80% or higher 80% 80% or higher

The percentage of key deliverables agreed with the Minister completed in accordance with organisational priorities and agreed standards will be no less than 85%

85% or higher 85% 85% or higher
End of Year Performance Reporting

Performance information for this appropriation will be reported by the State Services Commission in the 2018/19 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2018/19 is due to the 2017/18 appropriation having been inflated by the drawdown of contingency funding for phase two of the Data Exchange project.

2.3 - Departmental Capital Expenditure and Capital Injections#

State Services Commission - Capital Expenditure PLA (M66)#

Scope of Appropriation

This appropriation is limited to the purchase or development of assets by and for the use of the State Services Commission, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,033 1,140 100
Intangibles - - -
Other - - -

Total Appropriation

1,033 1,140 100

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the renewal and replacement of life-expired assets in support of the delivery of the State Services Commission's services.

How Performance will be Assessed and End of Year Reporting Requirements

Expenditure will be in accordance with the State Services Commission's capital asset management policy.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the State Services Commission in the 2018/19 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2018/19 is due to forecast expenditure reverting to its normal level, following a one-off increase in 2017/18 when the State Services Commission updated their workspace to one that supports their operating model.

Capital Injections and Movements in Departmental Net Assets

State Services Commission

Details of Net Asset Schedule 2017/18
Estimated Actual
$000
2018/19
Projected
$000
Explanation of Projected Movements in 2018/19
Opening Balance - 3,913  
Capital Injections 1,500 -  
Capital Withdrawals - (500) Transfer in 2018/19 for accumulated depreciation reserves to provide for replacement of information technology assets which have transferred to the Treasury Central Agencies Shared Services.
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

3,913 3,413  

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Open Government Partnership (M66)

Scope of Appropriation
This appropriation is limited to payments associated with New Zealand's membership of the Open Government Partnership.
Expenses
  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 200 200 200
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve supporting the delivery of New Zealand's Open Government Partnership commitments.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s.15D(2)(b)(ii) of the Public Finance Act, as additional performance reporting was unlikely to be informative. This appropriation is limited to payments associated with New Zealand's membership to the Open Government Partnership.

Scope of Appropriation#

This appropriation is limited to the remuneration and costs relating to the employment of chief executives employed by the State Services Commissioner.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,015 15,242 16,460

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve meeting remuneration and other employment costs for chief executives employed by the State Services Commissioner, who leads the Public Service.

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

An exemption was granted under s.15D(2)(b)(ii) of the Public Finance Act, as additional performance information is unlikely to be informative because this appropriation is solely for the remuneration and costs relating to the employment of chief executives employed by the State Services Commissioner.

Scope of Appropriation#

The settlement of legal liabilities incurred by now-disestablished government departments and other Crown settlements.

Expenses#

  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7 - 7

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the settlement of potential legal liabilities incurred by disestablished government departments and other Crown settlements.

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 other expense is less than $5 million.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Leadership of the Public Sector (M66)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to support decision making by Ministers on Government policy matters and leading the Public Management System.
Scope of Appropriation

Departmental Output Expenses

Leadership of the Public Management System
This category is limited to ensuring the Public Management System has the design, capability and performance to deliver public services.
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to the Public Management System.
Expenses, Revenue and Capital Expenditure
  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

30,601 30,601 29,823

Departmental Output Expenses

     
Leadership of the Public Management System 25,074 25,074 24,295
Policy Advice 5,527 5,527 5,528

Funding for Departmental Output Expenses

     

Revenue from the Crown

23,972 23,972 23,363
Leadership of the Public Management System 18,445 18,445 17,835
Policy Advice 5,527 5,527 5,528

Revenue from Others

6,629 6,629 6,460
Leadership of the Public Management System 6,629 6,629 6,460
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a higher performing State sector through delivery of policy advice and leadership of the public management system by ensuring that the State services is collectively responsible and works together, learning what works best and using it to improve performance for customers and having the people, institutions and approach to respond effectively to the needs of New Zealanders today and in the future.

How Performance will be Assessed for this Appropriation
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Respondents in the Kiwis Count survey agree or strongly agree that, based on their last service experience, they could trust public servants to do what is right

80% 80% 80%

Overall Kiwis Count service quality score

75 points 75 points 75 points
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Leadership of the Public Management System

     

This category is intended to achieve that the Public Management System has the design capability, and performance to deliver public services

     

Complete the National Action Plan Mid Term Self-Assessment

100% 100% Measure replaced

Complete the National Action Plan End of Term Self-Assessment

New Measure New Measure 100%

Development of a National Action Plan 2018-20 (NAP 3)

New Measure New Measure 100%

Recommissioning of the next phase of the reform programme with new plans in place for June 2018

100% 100% Measure removed

SSCs system leadership role in Auckland is acknowledged and supported by government agencies and demonstrated by their presence in the Auckland Policy Office (APO)

Maintaining at least 12 APO government memberships 12 Maintaining at least 12 APO government memberships

Following their agency's Performance Improvement Framework review, chief executives responded that they valued the review process

Measure removed Measure removed n/a

Agency sponsors agree that the State Services Commission's Continuous Improvement engagements deliver value

Measure removed Measure removed n/a

State Services Chief Executives agree that the State Services Commission provides the leadership required to support them in their agencies

Measure replaced Measure replaced Measure replaced

State Services Chief Executives agree that the State Services Commission provides the leadership required to support them in their collective leadership and in leading their agencies

Average score of 4 out of 5, or better 4 out of 5 Average score of 4 out of 5, or better

Development plans in place for identified successors for all Public Service chief executive roles

Measure removed Measure removed n/a

Public Service chief executives who have been in the role for one year or more meet or exceed the State Services Commissioner's performance expectations

Measure removed Measure removed n/a

Deployment of senior leaders through Career Boards and brokered with the State Services Commission

100 100 100

Policy Advice

     

This category is intended to achieve providing advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Government policy matters relating to the Public Management System

     

Technical quality of policy advice papers assessed by a survey with a methodical robustness of 90%

70% 70% 70%

Minister of State Services has satisfaction with policy advice

80% 80% 80%

The total cost per hour of producing outputs

$160 $160 $160
End of Year Performance Reporting

Performance information for this appropriation will be reported by the State Services Commission in the 2018/19 Annual Report.

Reasons for Change in the Appropriation

The decrease in this appropriation for 2018/19 is primarily due to the 2017/18 appropriation having been inflated by an expense transfer from 2016/17.