Supplementary estimates of appropriations

Vote Defence - Supplementary Estimates 2019/20

Publication type:
Supplementary estimates of appropriations
Status:
Current
Document (signed) date:
Issue date:
Part of:
Corporate author:
Government of New Zealand
Viewpoint:
Government
Publication category:
Budgets of the government
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
ISBN:
978-1-98-858090-6 (print), 978-1-98-858091-3 (online)
Fiscal year:
2019/20
Budget year:
2020
Budget vote:
Defence
Last updated:

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#

Titles and Scopes of Appropriations by Appropriation Type 2019/20
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.		 2,378 (287) 2,091

Management of Defence Capabilities (M22)

This appropriation is limited to the management of procurement, refurbishment and delivery of defence capabilities, on behalf of the Crown, for the New Zealand Defence Force.		 9,658 1,487 11,145

Total Departmental Output Expenses

12,036 1,200 13,236

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 Capabilities (M22)

This appropriation is limited to the purchase, modification or refurbishment of defence capabilities for the New Zealand Defence Force.		 744,376 (77,128) 667,248

Total Non-Departmental Capital Expenditure

744,376 (77,128) 667,248

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Related Outputs MCA (M22)

The single overarching purpose of this appropriation is to provide policy advice, other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.		 9,285 1,187 10,472

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.		 1,115 112 1,227

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.		 5,590 564 6,154

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.		 2,580 511 3,091

Total Multi-Category Expenses and Capital Expenditure

9,285 1,187 10,472

Total Annual Appropriations and Forecast Permanent Appropriations

766,047 (74,741) 691,306

Capital Injection Authorisations#

  2019/20
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

  2019/20
Estimates
$000		 Supplementary Estimates Total
$000
Departmental
Transactions
$000		 Non-Departmental
Transactions
$000		 Total
Transactions
$000

Appropriations

         
Output Expenses 12,036 1,200 - 1,200 13,236
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses - - - - -
Capital Expenditure 744,726 - (77,128) (77,128) 667,598
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 9,285 1,187 - 1,187 10,472
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

766,047 2,387 (77,128) (74,741) 691,306

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue - N/A - - -
Capital Receipts 744,376 N/A (77,128) (77,128) 667,248

Total Crown Revenue and Capital Receipts

744,376 N/A (77,128) (77,128) 667,248

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
  2019/20
Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 2,378 (287) 2,091
Revenue from the Crown 2,378 (329) 2,049
Revenue from Others - 42 42
Reasons for Change in Appropriation

This appropriation decreased by $287,000 to $2.091 million for 2019/20 due to:

  • a transfer of $345,000 to other departmental output expense appropriations to align resourcing with demand and activities, and
  • a transfer of $90,000 to other departmental output expense appropriations to meet changes in cost drivers in 2019/20.

These are partially offset by:

  • a transfer of $100,000 from 2018/19 to 2019/20 to reflect the timing of audits and assessments
  • a one-off increase of $42,000 from insurance proceeds for costs incurred as a result of the November 2016 Kaikoura earthquake, and
  • a transfer of $6,000 from 2018/19 to 2019/20 to reflect the timing of the Ministry's relocation to Defence House.

Management of Defence Capabilities (M22)

Scope of Appropriation
This appropriation is limited to the management of procurement, refurbishment and delivery of defence capabilities, on behalf of the Crown, for the New Zealand Defence Force.
Expenses and Revenue
  2019/20
Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Total Appropriation 9,658 1,487 11,145
Revenue from the Crown 9,658 (1,095) 8,563
Revenue from Others - 2,582 2,582
Reasons for Change in Appropriation

This appropriation increased by $1.487 million to $11.145 million for 2019/20 due to:

  • an increase of $2.487 million in cost recoveries from the New Zealand Defence Force
  • a transfer of $303,000 from other departmental output expense appropriations to meet changes in cost drivers in 2019/20
  • a transfer of $131,000 from 2018/19 to 2019/20 due to timing of capability projects capability
  • a one-off increase of $95,000 from insurance proceeds for costs incurred as a result of the November 2016 Kaikoura earthquake, and
  • a transfer of $12,000 from 2018/19 to 2019/20 to reflect the timing of the Ministry's relocation to Defence House.

These are partially offset by:

  • a transfer of $1.200 million from 2019/20 to the three following years to reflect the timing of the capability projects
  • a transfer of $277,000 to other departmental output expense appropriations to align resourcing with demand and activities, and
  • a one-off reduction of $64,000 in capital charge.

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
  2019/20
Estimates
$000		 Supplementary
Estimates
$000		 Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 250 - 250
Intangibles 100 - 100
Other - - -

Total Appropriation

350 - 350
Capital Injections and Movements in Departmental Net Assets
Ministry of Defence
Details of Net Asset Schedule 2019/20
Main
Estimates Projections
$000		 2019/20
Supplementary Estimates
Projections
$000		 Explanation of Projected Movements in 2019/20
Opening Balance 2,353 2,353 Supplementary Estimates opening balance reflects the audited results as at 30 June 2019.
Capital Injections - -  
Capital Withdrawals - (1,063) Return of capital to the Crown.
Surplus to be Retained (Deficit Incurred) - 1,063 Retention of insurance proceeds for assets damaged or destroyed as a result of the November 2016 Kaikoura earthquake.
Other Movements - -  

Closing Balance

2,353 2,353  

Part 3 - Details of Non-Departmental Appropriations#

3.5 - Non-Departmental Capital Expenditure#

Defence Capabilities (M22)

Scope of Appropriation
This appropriation is limited to the purchase, modification or refurbishment of defence capabilities for the New Zealand Defence Force.
Reasons for Change in Appropriation

This appropriation decreased by $77.128 million to $667.248 million for 2019/20 due to the rescheduling of project milestones to later years following contract negotiations of $111.975 million, offset by approval of four new defence capability projects of $34.847 million.

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 single 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
  2019/20
Estimates
$000		 Supplementary
Estimates
$000		 Total
$000

Total Appropriation

9,285 1,187 10,472

Departmental Output Expenses

     
Ministerial Services 1,115 112 1,227
Policy Advice 5,590 564 6,154
Policy Support 2,580 511 3,091

Funding for Departmental Output Expenses

     

Revenue from the Crown

9,285 441 9,726
Ministerial Services 1,115 53 1,168
Policy Advice 5,590 265 5,855
Policy Support 2,580 123 2,703

Revenue from Others

- 746 746
Ministerial Services - 59 59
Policy Advice - 299 299
Policy Support - 388 388
What is Intended to be Achieved with each Category and How Performance will be Assessed
Assessment of Performance 2019/20
Estimates
Standard		 Supplementary Estimates
Standard		 Total
Standard

Departmental Output Expenses

     

Ministerial Services

     
This category is intended to achieve the provision of quality and timely Ministerial support to the Minister.
      

Quality, as assessed by the percentage of first draft of all correspondence accepted by the Minister.

 >= 95% >= 90% >= 90%

Policy Advice

     
This category is intended to achieve the provision of accurate, timely and responsive policy advice.
      

Technical quality of policy advice, as assessed by independent review of a sample of policy papers (see Note 1).

 Under review >= 3.5 >= 3.5

Minister's satisfaction with the quality of policy advice, as assessed by survey (see Note 1).

 Under review >= 3.5 >= 3.5

Note 1 - At the time of setting the Estimates, both of these measures were being reviewed by Treasury with a view to creating an all-of-government methodology. This methodology was finalised during 2019/20 with both measures being a rating out of 5.

Reasons for Change in Appropriation

This appropriation increased by $1.187 million to $10.472 million for 2019/20 due to:

  • a transfer of $622,000 to other departmental output expense appropriations to align resourcing with demand and activities
  • an increase of $529,000 in cost recoveries from other government agencies
  • a one-off increase of $217,000 from insurance proceeds for costs incurred as a result of the November 2016 Kaikoura earthquake, and
  • a transfer of $32,000 from 2018/19 to 2019/20 to reflect the timing of the Ministry's relocation to Defence House.

These are partially offset by a transfer of $213,000 to other departmental output expense appropriations to meet changes in cost drivers in 2019/20.