Supplementary estimates of appropriations

Vote Defence - Supplementary Estimates 2018/19

Formats and related files

Vote Defence#

APPROPRIATION MINISTER(S): Minister of Defence (M22)

APPROPRIATION ADMINISTRATOR: Ministry of Defence

RESPONSIBLE MINISTER FOR MINISTRY OF DEFENCE: Minister of Defence

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2018/19
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Audit & Assessment (M22)

This appropriation is limited to audits and assessments of the New Zealand Defence Force and the Ministry of Defence.
2,294 (47) 2,247

Management of Equipment Procurement (M22)

Managing procurement or refurbishment, on behalf of the Crown, of various items of equipment contributing to a capability of the New Zealand Defence Force.
9,628 2,229 11,857

Total Departmental Output Expenses

11,922 2,182 14,104

Departmental Capital Expenditure

     

Ministry of Defence - Capital Expenditure PLA (M22)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Defence, as authorised by section 24(1) of the Public Finance Act 1989.
350 - 350

Total Departmental Capital Expenditure

350 - 350

Non-Departmental Capital Expenditure

     

Defence Equipment (M22)

This appropriation is limited to the purchase, modification or refurbishment of major items of defence equipment for the New Zealand Defence Force.
294,121 151,671 445,792

Total Non-Departmental Capital Expenditure

294,121 151,671 445,792

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Related Outputs MCA (M22)

The overarching purpose of this appropriation is to provide policy advice, other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
8,171 1,563 9,734

Departmental Output Expenses

     

Ministerial Services

This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
981 157 1,138

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 defence and national security.
4,919 791 5,710

Policy Support

This category is limited to the provision of services (other than defence policy) that support the development and procurement of military capability, and the conduct of international defence relations.
2,271 615 2,886

Total Multi-Category Expenses and Capital Expenditure

8,171 1,563 9,734

Total Annual Appropriations and Forecast Permanent Appropriations

314,564 155,416 469,980

Capital Injection Authorisations#

  2018/19
  Estimates Budget
$000
Supplementary
Estimates Budget
$000
Total Budget
$000
Ministry of Defence - Capital Injection (M22) - - -

Supporting Information#

Part 1 - Vote as a Whole#

Summary of Financial Activity
  2018/19
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 11,922 2,182 - 2,182 14,104
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses - - - - -
Capital Expenditure 294,471 - 151,671 151,671 446,142
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 8,171 1,563 - 1,563 9,734
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

314,564 3,745 151,671 155,416 469,980

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue - N/A - - -
Capital Receipts 294,121 N/A 151,671 151,671 445,792

Total Crown Revenue and Capital Receipts

294,121 N/A 151,671 151,671 445,792

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Audit & Assessment (M22)
Scope of Appropriation
This appropriation is limited to audits and assessments of the New Zealand Defence Force and the Ministry of Defence.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 2,294 (47) 2,247
Revenue from the Crown 2,294 (141) 2,153
Revenue from Others - 94 94
Reasons for Change in Appropriation

The decrease in this appropriation is due to a:

  • $116,000 reduction in the amount of the Ministry's indirect costs allocated to this output following a review of the Ministry's indirect allocation methodology, and
  • $25,000 reduction due to transfer of funding to other Ministry outputs to align resourcing with demand and activities.

These are partially offset by a $94,000 increase in costs due to the November 2016 Kaikoura earthquake, funded by Revenue from Others.

Management of Equipment Procurement (M22)
Scope of Appropriation
Managing procurement or refurbishment, on behalf of the Crown, of various items of equipment contributing to a capability of the New Zealand Defence Force.
Expenses and Revenue
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 9,628 2,229 11,857
Revenue from the Crown 9,628 (770) 8,858
Revenue from Others - 2,999 2,999
Reasons for Change in Appropriation

The increase in this appropriation is due to:

  • a $2.845 million increase in costs arising from definition-phase and pre-acquisition-stage Defence capability project costs, funded by Revenue from Others
  • a $154,000 increase due to costs incurred due to the November 2016 Kaikoura earthquake, funded by Revenue from Others, and
  • a $50,000 increase in the amount of the Ministry's indirect costs allocated to this output following a review of the Ministry's indirect allocation methodology, funded by Revenue from the Crown.

This increase is partly offset by a $820,000 reduction due to transfer of funding to other Ministry outputs to align resource requirements with demand and activities.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Defence - Capital Expenditure PLA (M22)
Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Defence, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2018/19
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 325 (75) 250
Intangibles 25 75 100
Other - - -

Total Appropriation

350 - 350
Capital Injections and Movements in Departmental Net Assets
Ministry of Defence
Details of Net Asset Schedule 2018/19
Main Estimates Projections
$000
2018/19
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2018/19
Opening Balance 2,353 2,353 Supplementary Estimates opening balance reflects the audited results as at 30 June 2018.
Capital Injections - -  
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

2,353 2,353  

Part 3 - Details of Non-Departmental Appropriations#

3.5 - Non-Departmental Capital Expenditure#

Defence Equipment (M22)
Scope of Appropriation
This appropriation is limited to the purchase, modification or refurbishment of major items of defence equipment for the New Zealand Defence Force.
Capital Expenditure
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation 294,121 151,671 445,792
Reasons for Change in Appropriation

The increase in this appropriation is due to the approval of six new Defence capability projects, totalling $235,024,000 during 2018/19, offset by $83.353 million due to the rescheduling of project milestones to later years following contract negotiations.

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

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Related Outputs (M22)
Overarching Purpose Statement
The overarching purpose of this appropriation is to provide policy advice, 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 the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
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 defence and national security.
Policy Support
This category is limited to the provision of services (other than defence policy) that support the development and procurement of military capability, and the conduct of international defence relations.
Expenses, Revenue and Capital Expenditure
  2018/19
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

8,171 1,563 9,734

Departmental Output Expenses

     
Ministerial Services 981 157 1,138
Policy Advice 4,919 791 5,710
Policy Support 2,271 615 2,886

Funding for Departmental Output Expenses

     

Revenue from the Crown

8,171 911 9,082
Ministerial Services 981 109 1,090
Policy Advice 4,919 549 5,468
Policy Support 2,271 253 2,524

Revenue from Others

- 652 652
Ministerial Services - 48 48
Policy Advice - 242 242
Policy Support - 362 362
Reasons for Change in Appropriation

The increase in this appropriation is due to a:

  • $845,000 increase due to transfer of funding from other Ministry outputs to align resource requirements with demand and activities
  • $66,000 increase in the amount of the Ministry's indirect costs allocated to this output following a review of the Ministry's indirect allocation methodology
  • $402,000 increase in costs incurred due to the November 2016 Kaikoura earthquake, funded by Revenue from Others and
  • $250,000 increase due to the Ministry incurring costs that are funded by another department, funded by Revenue from Others.