Estimates of appropriations

Vote State Services - Finance and Government Administration Sector - Estimates 2020/21

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 2020/21 financial year covering:

  • a total of over $31 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 Commission
  • a total of $200,000 for payments associated with New Zealand's membership of the Open Government Partnership, and
  • a total of $100,000 for departmental capital expenditure for minor furniture and IT replacements.

The Minister for Social Development is responsible for appropriations in Vote State Services for the 2020/21 financial year covering:

  • a total of over $8 million for the provision of strategic cross-system advice and support, and insights, tools, and practices in order to implement the social wellbeing approach to support and further the long term wellbeing of New Zealanders.

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

     

Leadership of the Public Management System (M66)

This appropriation is limited to ensuring the Public Management System has the design, capability and performance to deliver public services, and providing advice and services to support Ministers to discharge their portfolio responsibilities relating to the Public Management System.
- - 31,029

Supporting Implementation of a Social Wellbeing Approach (M63)

This appropriation is limited to providing strategic cross-social-system advice and supporting cross-system work, creating insights, tools, and practices to support sector-wide implementation of a social wellbeing approach.
- - 8,085

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.
13,880 10,456 -

Place-based Initiatives - National Support (M63)

This appropriation is limited to providing support and evaluation across place-based initiatives.
522 522 -

Total Departmental Output Expenses

14,402 10,978 39,114

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.
412 412 100

Total Departmental Capital Expenditure

412 412 100

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.
16,395 14,963 16,411

Total Non-Departmental Other Expenses

16,595 15,163 16,611

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.
35,491 34,749 -

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.
29,762 29,020 -

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.
5,729 5,729 -

Total Multi-Category Expenses and Capital Expenditure

35,491 34,749 -

Total Annual Appropriations and Forecast Permanent Appropriations

66,900 61,302 55,825

Capital Injection Authorisations#

  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
State Services Commission - Capital Injection (M66) 475 475 -

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
Continuing to Deliver on SSC Core Functions, System Leadership and Government Expectations

Leadership of the Public Management System

Departmental Output Expense
- - - 2,000 2,000
Re-Entry, Recovery and Examination of the Pike River Mine Drift

Remuneration and Related Employment Costs of Chief Executives

Non-Departmental Output Expense
- 266 - - -

Total Initiatives

  - 266 - 2,000 2,000

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 37,553 39,330 45,167 43,543 49,893 49,893 39,114 - 39,114 36,787 36,787 36,787
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 12,815 14,081 14,940 15,167 16,595 16,595 - 16,611 16,611 16,345 16,345 16,345
Capital Expenditure 161 209 1,553 1,867 412 412 100 - 100 100 100 100
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 319 - - - - - - - - - - -
Other Expenses 130 - - - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

50,978 53,620 61,660 60,577 66,900 66,900 39,214 16,611 55,825 53,232 53,232 53,232

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 12,710 12,347 14,430 14,574 16,146 16,146 N/A 16,162 16,162 15,896 15,896 15,896
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

12,710 12,347 14,430 14,574 16,146 16,146 N/A 16,162 16,162 15,896 15,896 15,896

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

  2015/16
Adjustments
$000
2016/17
Adjustments
$000
2017/18
Adjustments
$000
2018/19
Adjustments
$000
2019/20
Final Budgeted
Adjustments
$000
2019/20
Estimated
Actual
Adjustments
$000

Appropriations

           
Output Expenses 27,925 28,547 30,162 29,997 35,491 35,491
Benefits or Related Expenses - - - - - -
Borrowing Expenses - - - - - -
Other Expenses - - - - - -
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
Output Expenses (27,295) (28,547) (30,162) (29,997) (35,491) (35,491)
Other Expenses - - - - - -
Capital Expenditure - - - - - -

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts

- - - - - -

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

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

Appropriations

Output Expenses

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 and 2018/19 reflected a time-limited 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), and an increase of $3.500 million resulting from the transition of the Leadership Development Centre (LDC). The LDC increase was fully self-funded by revenue from other departments and third parties with no revenue received from the Crown.

The increase in 2019/20 reflected three factors:

  • a $3 million increase in new funding enabling SSC to lead New Zealand's public services to deliver transparent, transformational, and compassionate government
  • a further increase of $2.733 million in revenue from departments and other parties, and
  • a decrease of $500,000 due to a transfer to the Department of the Prime Minister and Cabinet for Social Sector Leadership and Support.

The decrease in 2020/21 and outyears reflects:

  • a decrease of $3.860 million as the Data Exchange project was given time-limited funding (reducing by a further $1.327 million in 2021/22 and outyears)
  • a decrease of $2.733 million resulting from decreases in revenue from departments and other parties, and
  • a decrease of $1 million due to a further transfer to the Department of Prime Minister and Cabinet for additional Social Sector Leadership and Support.
Other Expenses

The increases in actual spend from 2014/15 to 2018/19 reflect the increase in the number of chief executives as a result of the increasing number of agencies.

The budget in 2018/19 and outyears is higher due to a contingency component within the appropriation, allowing for prompt and timely payment of any new unplanned chief executives.

Capital Expenditure

Capital expenditure rose in 2017/18 for the design and implementation of a workspace supporting the new operating model and provides for easy sharing of information and the ability to work in a mobile and flexible way.

Capital expenditure continued at a high level in 2018/19 due to the Commission leaving the Central Agencies Shared Services arrangement and purchasing its own IT hardware and infrastructure.

Capital expenditure was much lower in 2019/20, with the bulk spent on the refresh of the Leadership and Development Centre premises and IT equipment.

Budgeted capital expenditure in 2019/20 and outyears reflects the usual levels of forecast capital expenditure.

Crown Revenue and Capital Receipts

Non-Tax Revenue

The increase in 2017/18 was due to higher recoveries of chief executive salaries as a result of a higher number of agencies (as mentioned above). The high budget in 2018/19 and in outyears is reflective of the contingency built into the appropriation for the possibility of additional chief executives (also mentioned above).

1.4 - Reconciliation of Changes in Appropriation Structure#

2019/20 Appropriations
in the 2019/20 Structure
2019/20
(Current)
$000
Old Structure New Structure
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2019/20 Appropriations
in the 2020/21 Structure
2019/20
(Restated)
$000
2020/21
$000
Part 1:            
Policy Advice and Leadership of the Public Sector MCA - Transferred from Policy Advice and Leadership of the Public Management Sector
Departmental Output Expense
35,491 Leadership of the Public Management System 35,491 31,029
Leadership of the Public Management System 29,762 Transferred to Leadership of the Public Management System
Departmental Output Expense
(29,762)      
Policy Advice 5,729 Transferred to Leadership of the Public Management System
Departmental Output Expense
(5,729)      
Total 35,491   -   35,491 31,029
Part 2:            
Designing and Implementing Social Investment 13,880 Transferred from Designing and Implementing Social Investment 13,880 Supporting Implementation of a Social Wellbeing Approach 13,880 8,085
    Transferred to Supporting Implementation of a Social Wellbeing Approach (13,880)      
Total 13,880   -   13,880 8,085
Total Changes in Appropriations 49,371   -   49,371 39,114

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#

Leadership of the Public Management System (M66)

Scope of Appropriation
This appropriation is limited to ensuring the Public Management System has the design, capability and performance to deliver public services, and providing advice and services to support Ministers to discharge their portfolio responsibilities relating to the Public Management System.
Expenses and Revenue
  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 31,029
Revenue from the Crown - - 26,379
Revenue from Others - - 4,650
Comparators for Restructured Appropriation
Vote, Type and Title of Appropriation 2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote State Services: Policy Advice and Leadership of the Public Management System Multi-Category Appropriation: Departmental Output Expense      
Leadership of the Public Management System 29,762 29,020 -
Policy Advice 5,729 5,729 -
Total 35,491 34,749 31,029
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 and End of Year Reporting Requirements
Assessment of Performance 2019/20 2020/21
Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Technical quality of policy advice papers assessed using the Policy Quality Framework

70% 70% 70%

Minister of State Services has satisfaction with policy advice

80% 80% 80%

SSC works with Public Service chief executives to agree individual development plans

100% of CE's have an agreed development plan 100% of CE's have an agreed development plan 100% of CE's have an agreed development plan

A succession plan is developed for the chief executive position of Public Service agencies

100% of CE positions have a succession plan 100% of CE positions have a succession plan 100% of CE positions have a succession plan

The Kiwis Count trust and confidence survey is run by SSC with reporting provided yearly that identifies the public's perceptions and experiences of trust and confidence in public services

Annual results are published by 30 June Published by 30 June Annual results are published by 30 June

Respondents in the Kiwis Count trust and confidence 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%

SSC strengthens Public Service leadership through all Public Service departments being members of the Leadership Development Centre (LDC)

100% membership 100% membership 100% membership

SSC strengthens Public Service leadership through promoting attendance at the annual Public Service Leaders Summit

At least 500 invitees Summit rescheduled due to COVID-19 At least 500 invitees

SSC strengthens Public Service leadership by supporting career boards

At least 90 active members 90 active members At least 90 active members

SSC collects and publishes Public Service workforce data annually

Published no later than 15 December Published by 15 December Published no later than 15 December

SSC reports the remuneration of all Public Service chief executives every financial year

100% of all CE remuneration published 100% of all CE remuneration published 100% of all CE remuneration published

SSC meets its statutory requirements for appointment, reappointment and transfer of Public Service chief executives

100% 100% 100%

SSC, in partnership with the Ministry for Women, supports all Public Service departments to publish their Gender Pay Gap action plans before 31 December 2020

100% of departments publish by 31 December 2020 80% of departments published as at 30 June 2020 100% of departments publish by 31 December 2020

SSC develops and oversees the implementation of the Open Government Partnership (OGP) National Action Plan. A National Action Plan and associated End-of-Term Self Assessment is published in accordance with OGP requirements

Achieved Achieved Achieved

SSC publishes Official Information Act (OIA) request statistics for government agencies that are subject to the Act every six months within three months of the end of the reporting period or as otherwise agreed with the Office of the Ombudsman

Achieved Achieved Achieved

SSC recognises the contribution of public servants through the coordination of annual awards and recognition events by recognising and publicising the recipients within one month of the medal's award

100% of recipients recognised within one month 100% of recipients recognised within one month 100% of recipients recognised within one month

Note that the 2019/20 performance measures above relate to the Leadership of the Public Management System Multi-Category Appropriation which has been discontinued and replaced with this appropriation. They are included here for ease of comparison.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the State Services Commission in the 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
Delivering on SSC core functions, system leadership and Government expectations 2019/20 3,000 3,000 2,000 - -
Continuing to deliver on SSC core functions, system leadership and Government expectations 2022/23 - - - 2,000 2,000
Reasons for Change in Appropriation

This is a new appropriation created to replace the Policy Advice and Leadership of the Public Sector Multi-Category Appropriation to reduce compliance costs and administration through consolidating appropriations. The budget of $31.029 million has been transferred from the old MCA. This is a decrease of $4.462 million due to:

  • a one-off increase of $2.638 million in 2019/20 in revenue from other departments, largely relating to the Public Service Fale, the Pay Equity and Gender Taskforce, and secondments
  • a decrease in 2020/21 and outyears of $790,000 in revenue from departments
  • a one-off increase of $415,000 in 2019/20 for the retention of the Leadership Development Centre's surplus from 2018/19
  • a one-off increase of $414,000 in 2019/20 for revenue from other parties, largely relating to insurance for legal fees
  • a one-off increase of $227,000 in 2019/20 for a capital to operating swap to allow the Leadership Development Centre to utilise funding on the balance sheet to pay for fellowships, and
  • a one-off increase of $200,000 in 2019/20 to support the Crown's response to the Royal Commission of Inquiry into Historical Abuse in Care.

These decreases are offset by

  • a one-off decrease of $222,000 in 2019/20 due to an operating to capital swap for the Leadership Development Centre to refresh its furniture and IT equipment.

Supporting Implementation of a Social Wellbeing Approach (M63)

Scope of Appropriation
This appropriation is limited to providing strategic cross-social-system advice and supporting cross-system work, creating insights, tools, and practices to support sector-wide implementation of a social wellbeing approach.
Expenses and Revenue
  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 8,085
Revenue from the Crown - - 8,085
Revenue from Others - - -
Comparators for Restructured Appropriation
Vote, Type and Title of Appropriation 2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote State Services: Departmental Output Expense: Designing and Implementing Social Investment 13,880 10,456 -
Total 13,880 10,456 8,085
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of strategic cross-system advice and support, and insights, tools, and practices in order to implement the social wellbeing approach to support and further the long term wellbeing of New Zealanders.

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

At least 70% 70% At least 70%

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

80% or higher 85% 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

Note that the 2019/20 performance measures above relate to the Designing and Implementing Social Investment appropriation which has been discontinued and replaced with this appropriation. They are included here for ease of comparison.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the State Services Commission in the 2020/21 Annual Report.

Reasons for Change in Appropriation

This is a new appropriation created to replace the Designing and Implementing Social Investment appropriation to better align with the new approach in social wellbeing. The budget of $8.085 million has been transferred from the Designing and Implementing Social Investment appropriation. This is a decrease of $5.795 million from 2019/20 due to:

  • a decrease of $3.860 million in 2020/21 as part of the funding profile for Phase 2 development of the Data Exchange
  • a decrease of $1 million in 2020/21 due to the ongoing transfer to the Department of Prime Minister and Cabinet for social sector leadership and support
  • a decrease of $670,000 in 2020/21 due to two one-off expense transfers from 2018/19 to 2019/20, and
  • a one-off increase in departmental revenue of $265,000 in 2019/20 from the Department of Internal Affairs innovation fund.

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
  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 412 412 100
Intangibles - - -
Other - - -

Total Appropriation

412 412 100
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 2020/21 Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2020/21 is due to forecast expenditure reverting to its normal level, following an increase in 2019/20 for the refresh of the Leadership Development Centre's offices and IT equipment.

Capital Injections and Movements in Departmental Net Assets
State Services Commission
Details of Net Asset Schedule 2019/20
Estimated Actual
$000
2020/21
Projected
$000
Explanation of Projected Movements in 2020/21
Opening Balance 6,086 5,919  
Capital Injections 475 -  
Capital Withdrawals (642) -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

5,919 5,919  

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
  2019/20 2020/21
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 has been granted under s.15D(2)(b)(ii) of the Public Finance Act, as additional performance reporting is unlikely to be informative. This appropriation is limited to payments associated with New Zealand's membership to the Open Government Partnership.

Remuneration and Related Employment Costs of Chief Executives (M66)

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
  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,395 14,963 16,411
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 has been 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.

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
Funding for the CE of the Ministry of Housing and Urban Development 2018/19 505 505 505 505 505
Re-Entry, Recovery and Examination of the Pike River Mine Drift 2020/21 - 266 - - -