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Supplementary estimates of appropriations

Vote Corrections - Supplementary Estimates 2017/2018

Vote Corrections

APPROPRIATION MINISTER(S): Minister of Corrections (M18)

APPROPRIATION ADMINISTRATOR: Department of Corrections

RESPONSIBLE MINISTER FOR DEPARTMENT OF CORRECTIONS: Minister of Corrections

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

  2017/18
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Re-offending is Reduced (M18)

This appropriation is limited to the provision of rehabilitation interventions and reintegration services to offenders serving custodial and community-based sentences that address the underlying causes of criminal offending and reduce re-offending.
201,545 20,870 222,415

Total Departmental Output Expenses

201,545 20,870 222,415

Departmental Capital Expenditure

     

Department of Corrections - Capital Expenditure PLA (M18)

This appropriation is limited to the purchase or development of assets by and for the use of the Department of Corrections, as authorised by section 24(1) of the Public Finance Act 1989.
252,076 39,334 291,410

Total Departmental Capital Expenditure

252,076 39,334 291,410

Non-Departmental Other Expenses

     

Waikeria Corrections and Treatment Facility (M18)

This appropriation is limited to infrastructure improvements that are either a condition of the designation or otherwise necessary to enable the development of the Waikeria Corrections and Treatment Facility.
- 7,500 7,500

Total Non-Departmental Other Expenses

- 7,500 7,500

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Ministerial Services MCA (M18)

The single overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
3,631 915 4,546

Departmental Output Expenses

     

Ministerial Services

This category is limited to Department responses to ministerial correspondence and parliamentary questions.
1,985 3 1,988

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.
1,646 912 2,558

Public Safety is Improved MCA (M18)

The single overarching purpose of this appropriation is to manage offenders serving custodial and community-based sentences in a manner so as to improve the safety of offenders, staff, victims and the public.
1,216,552 60,815 1,277,367

Departmental Output Expenses

     

Information and administrative services to the judiciary and New Zealand Parole Board

This category is limited to the provision of information about offenders to victims of crime, the Judiciary and the New Zealand Parole Board and the provision of administrative, financial and secretariat services to the New Zealand Parole Board.
61,393 320 61,713

Prison-based Custodial Services

This category is limited to the provision of custodial services including under long-term service contracts and Public Private Partnerships for offenders lawfully required to be detained in custody. This includes remand prisoners (people awaiting trial and offenders convicted but not yet sentenced), those offenders sentenced to imprisonment, and any other offenders required to be lawfully detained in custody.
937,872 56,515 994,387

Sentences and orders served in the community

This category is limited to the management and delivery of sentences and orders served in the community, and electronic monitoring of people on bail.
217,287 3,980 221,267

Total Multi-Category Expenses and Capital Expenditure

1,220,183 61,730 1,281,913

Total Annual and Permanent Appropriations

1,673,804 129,434 1,803,238

Capital Injection Authorisations

  2017/18
  Estimates Budget
$000
Supplementary
Estimates Budget
$000
Total Budget
$000
Department of Corrections - Capital Injection (M18) 64,900 17,000 81,900

Supporting Information

Part 1 - Vote as a Whole

1.2 - Trends in the Vote

Summary of Financial Activity
  2017/18
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 201,545 20,870 - 20,870 222,415
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses - - 7,500 7,500 7,500
Capital Expenditure 252,076 39,334 - 39,334 291,410
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 1,220,183 61,730 - 61,730 1,281,913
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

1,673,804 121,934 7,500 129,434 1,803,238

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue - N/A - - -
Capital Receipts - N/A - - -

Total Crown Revenue and Capital Receipts

- N/A - - -

Part 2 - Details of Departmental Appropriations

2.1 - Departmental Output Expenses

Re-offending is Reduced (M18)

Scope of Appropriation
This appropriation is limited to the provision of rehabilitation interventions and reintegration services to offenders serving custodial and community-based sentences that address the underlying causes of criminal offending and reduce re-offending.
Expenses and Revenue
  2017/18
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 201,545 20,870 222,415
Revenue from the Crown 171,851 16,530 188,381
Revenue from Others 29,694 (809) 28,885
Reasons for Change in Appropriation

This appropriation increased by $20.870 million to $222.415 million for 2017/18 due to:

  • an increase of $1.752 million in funding relating to burglary prevention activity
  • a transfer of $2.557 million from 2016/17 to 2017/18 mainly relating to Enhanced Mental Health and Out of Gate Initiatives
  • $15.700 million relating to fiscally neutral adjustments for the following:
    • transfer of $8.100 million from the Public Safety is Improved MCA to realign the resource requirements with demand and activities
    • transfer of $8.100 million from the Public Safety is Improved MCA to realign the resource requirements with demand and activities
    • an increase of $2.400 million received in revenue other from canteen supply sales
  • an increase of $673,000 to reflect the increase capital charge and depreciation following the fair value adjustments to assets as at 30 June 2017, and
  • $188,000 funding mainly related to inter-departmental secondments.

2.3 - Departmental Capital Expenditure and Capital Injections

Department of Corrections - Capital Expenditure PLA (M18)

Scope of Appropriation

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

Capital Expenditure

  2017/18
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 219,038 (240) 218,798
Intangibles 18,000 742 18,742
Other 15,038 38,832 53,870

Total Appropriation

252,076 39,334 291,410

Reasons for Change in Appropriation

This appropriation increased by $39.334 million to $291.410 million due to the projected completion of the Public Private Partnership (PPP) project for Auckland East Corrections Facility.

Capital Injections and Movements in Departmental Net Assets

Department of Corrections

Details of Net Asset Schedule 2017/18
Main Estimates Projections
$000
2017/18
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2017/18
Opening Balance 2,371,737 2,446,992 Supplementary Estimates opening balance reflects the audited results as at 30 June 2017.
Capital Injections 64,900 81,900 Additional funding to increase prison capacity and to put the public-private partnership (PPP) procurement process for the Waikeria Corrections and Treatment Facility into a state of managed delay.
Capital Withdrawals - (5,135) The Capital withdrawal relates to capital to operating swap of $5 million for Waikeria Treatment facility and $135,000 return of surplus Justice sector funds to the Crown.
Surplus to be Retained (Deficit Incurred) - (19,449) The forecasted loss largely relates to the un-realised year to date fair value movement on the Departments interest rate swap entered into with New Zealand Debt Management Office to manage the risk relating to public private partnership transactions.
Other Movements - -  

Closing Balance

2,436,637 2,504,308  

Part 3 - Details of Non-Departmental Appropriations

3.4 - Non-Departmental Other Expenses

Waikeria Corrections and Treatment Facility (M18)

Scope of Appropriation
This appropriation is limited to infrastructure improvements that are either a condition of the designation or otherwise necessary to enable the development of the Waikeria Corrections and Treatment Facility.
Expenses
  2017/18
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 7,500 7,500
What is Intended to be Achieved with the Appropriation

This appropriation is intended to achieve safety and access improvements on the local road leading to Waikeria Corrections and treatment Facility and continuation of design of infrastructure improvements required to enable the development of the Waikeria Corrections and Treatment Facility.

How Performance will be Assessed and End of year Reporting Requirements
  • Completion of safety and access improvements on the local road leading to Waikeria Corrections and Treatment Facility
  • Continuation of design of infrastructure improvements required to enable the development of the Waikeria Corrections and Treatment Facility.
End of Year Performance Reporting

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

Reasons for Change in Appropriation

This appropriation increased by $7.500 million to $7.500 million to facilitate infrastructure improvements relating to the Waikeria Corrections and Treatment Facility and to provide safety and access improvements on the local road.

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

Multi-Category Expenses and Capital Expenditure

Policy Advice and Ministerial Services (M18)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
Scope of Appropriation

Departmental Output Expenses

Ministerial Services
This category is limited to Department responses to ministerial correspondence and parliamentary questions.
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.
Expenses, Revenue and Capital Expenditure
  2017/18
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

3,631 915 4,546

Departmental Output Expenses

     
Ministerial Services 1,985 3 1,988
Policy Advice 1,646 912 2,558

Funding for Departmental Output Expenses

     

Revenue from the Crown

3,631 910 4,541
Ministerial Services 1,985 - 1,985
Policy Advice 1,646 910 2,556

Revenue from Others

- 5 5
Ministerial Services - 3 3
Policy Advice - 2 2
Reasons for Change in Appropriation

This appropriation increased by $915,000 to $4.546 million due to:

  • transfer of $910,000 from Public Safety is Improved MCA to support higher resources, thereby reducing previous open vacancies, combined with higher provision of advice and support
  • $4,000 for Health and Safety Leadership programme
  • $1,000 for Inter-departmental secondments.

Public Safety is Improved (M18)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to manage offenders serving custodial and community-based sentences in a manner so as to improve the safety of offenders, staff, victims and the public.

Scope of Appropriation

Departmental Output Expenses

Information and administrative services to the judiciary and New Zealand Parole Board
This category is limited to the provision of information about offenders to victims of crime, the Judiciary and the New Zealand Parole Board and the provision of administrative, financial and secretariat services to the New Zealand Parole Board.
Prison-based Custodial Services
This category is limited to the provision of custodial services including under long-term service contracts and Public Private Partnerships for offenders lawfully required to be detained in custody. This includes remand prisoners (people awaiting trial and offenders convicted but not yet sentenced), those offenders sentenced to imprisonment, and any other offenders required to be lawfully detained in custody.
Sentences and orders served in the community
This category is limited to the management and delivery of sentences and orders served in the community, and electronic monitoring of people on bail.

Expenses, Revenue and Capital Expenditure

  2017/18
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

1,216,552 60,815 1,277,367

Departmental Output Expenses

     
Information and administrative services to the judiciary and New Zealand Parole Board 61,393 320 61,713
Prison-based Custodial Services 937,872 56,515 994,387
Sentences and orders served in the community 217,287 3,980 221,267

Funding for Departmental Output Expenses

     

Revenue from the Crown

1,213,358 58,109 1,271,467
Information and administrative services to the judiciary and New Zealand Parole Board 61,393 174 61,567
Prison-based Custodial Services 934,678 54,392 989,070
Sentences and orders served in the community 217,287 3,543 220,830

Revenue from Others

3,194 2,706 5,900
Information and administrative services to the judiciary and New Zealand Parole Board - 146 146
Prison-based Custodial Services 3,194 2,123 5,317
Sentences and orders served in the community - 437 437

Reasons for Change in Appropriation

This appropriation increased by $60.815 million to $1,277.367 million for 2017/18 due to:

  • $33 million in additional funding to enable the Department of Corrections to meet the costs of managing a growing prison population and to maintain the safety and security of the prison network
  • $16 million in new funding to enable Corrections comply with the Holidays Act 2003
  • $800,000 in new funding relating to the investment to support a more effective criminal justice system
  • an increase of $22.519 million for increased capital charge and depreciation following the fair value adjustments to assets as at 30 June 2017
  • $1.120 million relating to liquidated damages to offset the additional costs
  • $14.210 million decrease relating to fiscally neutral adjustments for the following:
    • transfer of $9.010 million, mainly to the Re-offending is Reduced appropriation, to realign the resource requirements with demand and activities, and
    • transfer of $5.200 million to Re-offending is Reduced appropriation to alleviate capacity pressures, and correct financial recommendations
  • $686,000 for the Inter-departmental secondments
  • $429,000 for the Health and Safety Functional Leadership programme
  • $219,000 Secondment to the Government of Pitcairn Islands
  • $200,000 for the Auckland Custody unit Reimbursement
  • $52,000 Insurance claim for damage to roller doors.
Last updated: 
Thursday, 17 May 2018