Vote Internal Affairs - Supplementary Estimates 2016/17

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Multi-Year Appropriations#

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administration of Grants (M15)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $53,000 to $3.589 million for 2016/17 due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $52,000), and

• a reduction in the capital rate charge (decrease of $1,000).

Local Government Services (M49)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation decreased by $112,000 to $2.584 million for 2016/17 due to a reduction in expenditure as a result of the change in timing from 2016/17 to 2017/18 associated with the tendering process for the National Dog Control Information Database operation and support contract.

Memorandum Account#

A review of fees is expected to be completed during 2017 after the completion of the redevelopment of Motuoapa Marina at Lake Taupo.

A period of higher expenditure is expected in 2017/18 associated with reviewing and renewing the National Dog Control Information Database operation and support contract. This expenditure is expected to utilise the accumulated surplus.

2.3 - Departmental Capital Expenditure and Capital Injections#

Department of Internal Affairs - Capital Expenditure PLA (M41)#

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

This appropriation decreased by $6 million to $50.675 million for 2016/17 mainly due to delays associated with the construction of the new Archives New Zealand building in Christchurch.

Capital Injections and Movements in Departmental Net Assets

Department of Internal Affairs

Part 3 - Details of Non-Departmental Appropriations#

3.2 - Non-Departmental Benefits or Related Expenses#

Rates Rebate Scheme (M49)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $4.500 million to $52 million for 2016/17 due to the forecast lower uptake of the Rates Rebate Scheme in 2016/17.

3.4 - Non-Departmental Other Expenses#

Crown-owned Assets at Lake Taupo - Maintenance Costs (M49)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $1.184 million to $2.221 million for 2016/17 due to:

• an expense transfer from 2015/16 to 2016/17 to reflect the expected timing of the delivery of sediment relocation work at Motuoapa Marina at Lake Taupo as a result of the delays associated with the resource consent process (increase of $784,000), and

• funding for the operating costs associated with the redevelopment of Motuoapa Marina at Lake Taupo (increase of $400,000).

Depreciation on Official Residences (M47)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $60,000 to $253,000 for 2016/17 due to the additional depreciation associated with the revaluation of official residences owned by the Crown.

Former Governors-General - Annuities and Other Payments PLA (M47)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $50,000 to $516,000 for 2016/17 due to an increase in costs pursuant to the Governor-General (Annuities) Determination 2016 and an additional former Governor-General.

Former Prime Ministers - Annuities PLA (M47)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $20,000 to $194,000 for 2016/17 due to an increase in costs pursuant to the Parliamentary Annuities Determination 2016 and an additional former Prime Minister.

Members of the Executive - Travel (M47)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $514,000 to $12.568 million for 2016/17 due to an increase in costs for Ministerial travel.

Miscellaneous Grants - Internal Affairs (M41)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $700,000 to $749,000 for 2016/17 due to:

• central government agencies club funding contributions for Wellington resilience modelling (increase of $600,000), and

• funding for a one-off allocation to the promotional fund established by the Hastings District Council to support recovery from the Havelock North water contamination incident (increase of $100,000).

Neutering of High-Risk Menacing Dogs (M49)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve improved protection of New Zealanders from high-risk menacing dogs by providing a nationwide subsidy of neutering fees for these dogs and the associated promulgation costs.

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

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act as the amount of this annual non-departmental other expense appropriation is less than $5 million.

Service Providers#

Reasons for Change in Appropriation#

This appropriation was established in 2016/17 to provide funding for a nationwide subsidy of neutering fees for high-risk menacing dogs and the associated promulgation (increase of $850,000).

Conditions on Use of Appropriation#

Official Residences - Maintenance Costs (M47)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $200,000 to $576,000 for 2016/17 due to a reallocation of funding for the maintenance costs associated with official residences owned by the Crown.

Pitt Island Wharf (M41)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve improved resilience and functionality of the Pitt Island Wharf in the Chatham Islands.

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

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Internal Affairs in a report appended to the Department of Internal Affairs' Annual Report.

Service Providers#

Reasons for Change in Appropriation#

This appropriation was established in 2016/17 to provide funding for stage one of the costs associated with improving the resilience and functionality of Pitt Island Wharf (increase of $1.785 million).

Public Inquiries (M41)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the timely and efficient payment of fees for the Inquiry Chair and two members related to the Government Inquiry into Havelock North Drinking-Water.

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

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act as the amount of this annual non-departmental other expense appropriation is less than $5 million.

Reasons for Change in Appropriation#

This appropriation was re-established in 2016/17 to provide funding for the fees for the Government Inquiry into Havelock North Drinking-Water chair and two members (increase of $520,000).

Supporting Local Authorities' Post-Earthquake Statutory Activities (M49)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve support for delivering effective local government services by affected local authorities following the November 2016 Hurunui/Kaikoura earthquake.

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

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Internal Affairs in a report appended to the Department of Internal Affairs' Annual Report.

Reasons for Change in Appropriation#

This appropriation was established in 2016/17 to provide funding to local authorities to support their increased activities resulting from the November 2016 Hurunui/Kaikoura earthquake (increase of $500,000).

3.5 - Non-Departmental Capital Expenditure#

Capital Investments - Lake Taupo (M49)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $2.752 million to $6.086 million for 2016/17 due to:

• funding brought forward to 2016/17 from 2017/18 to 2029/30 for the redevelopment of Motuoapa Marina at Lake Taupo (increase of $2.570 million), and

• a capital transfer from 2015/16 to 2016/17 to reflect the expected timing of the redevelopment of Motuoapa Marina at Lake Taupo, as a result of the delays associated with the resource consent process (increase of $582,000).

These increases were partially offset by:

• a swap of capital funding to operating to fund the operating costs associated with the redevelopment of Motuoapa Marina at Lake Taupo (decrease of $400,000).

Fire Service Reform - Capital Injection (M41)#

Scope of Appropriation and Expenses#

Components of the Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve financial support for the amalgamation of rural and urban fire services into a new unified organisation.

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

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Internal Affairs in a report appended to the Department of Internal Affairs' Annual Report.

Reasons for Change in Appropriation#

This appropriation was established in 2016/17 to provide a repayable capital injection to the New Zealand Fire Service Commission for the transition project costs to amalgamate rural and urban fire services into a new unified organisation, Fire and Emergency New Zealand.

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

Multi-Category Expenses and Capital Expenditure#

Civic Information Services (M41)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Components of the Appropriation

How Performance will be Assessed for this Appropriation

Note 1 - Satisfaction performance measure involves a five point scale, either numerical (1-5, with '5' the highest rating) or qualitative: Very Satisfied, Good, Satisfied, Poor, Very Unsatisfied.

Reasons for Change in Appropriation

The appropriation increased by $1.520 million to $235.590 million for 2016/17.

The increase in the Managing and Accessing Identity Information category was due to:

• an increase in expenditure for Identity Products due to demand and expenditure associated with the Transforming the System of Service Delivery programme (increase of $7.797 million).

This increase was partially offset by:

• a decrease in expenditure associated with the uptake of RealMe Services (decrease of $1.962 million)

• a reduction in the capital charge rate (decrease of $755,000)

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $361,000), and

• a reallocation of funding to the non-departmental appropriation Official Residences - Maintenance Costs for costs associated with official residences owned by the Crown (decrease of $200,000).

The decrease in the Managing and Accessing Knowledge Information category was due to:

• a reduction in the capital charge rate (decrease of $2.923 million)

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $1.099 million)

• a realignment of the revenue and expenditure baseline associated with the provision of services provided by the National Library of New Zealand to third parties (decrease of $267,000), and

• a transfer of funding to the non-departmental appropriation Miscellaneous Grants - Internal Affairs to reflect the Department of Internal Affairs' contribution for Wellington resilience modelling (decrease of $200,000).

These decreases were partially offset by:

• expenditure associated with demand for the Kotui shared library and resource discovery service (increase of $876,000) and Electronic Purchasing in Collaboration services (increase of $879,000).

The decrease in the Publishing Civic Information category was due to:

• a reduction in expenditure due to lower demand for the New Zealand Gazette (decrease of $265,000).

Memorandum Accounts

New fees were implemented for the New Zealand Gazette in February 2016. The new fees will support the reduction of the current deficit. Future periodic fee reviews are scheduled to ensure full cost recovery.

The change to 10 year validity for adult passports has resulted in increased demand for passport products. It is expected that this behaviour will continue for the next five years until 2021. This has resulted in higher revenue and expenses with the net result being an overall increase in the memorandum account surplus. After 2021, there is a significant decrease in forecast adult volumes at which point the memorandum account will return to a deficit. A report to Cabinet is due in 2018 on options to address the projected deficit from 2021.

A higher number of Citizenship applications have been received than in previous years resulting in an increased surplus. This surplus is expected to contribute to the costs of replacing ageing technology. Following approval from Cabinet, the Department will undertake work as part of the Transforming the System of Service Delivery programme to modernise systems for Identity-related products. Citizenship fees will be reviewed following the completion of this programme of work.

Analysis of costs to provide Marriage and Civil Union products has shown that an increase in fees is required. Following approval from Cabinet, the Department will undertake work as part of the Transforming the System of Service Delivery programme to modernise systems for Identity-related products. The new fees will support reducing the deficit and contribute to the replacement of ageing technology.

Analysis of costs associated with the issue of Birth, Death and Marriage certifications and other products has shown that an increase in fees is required. Following approval from Cabinet, the Department will undertake work as part of the Transforming the System of Service Delivery programme to modernise systems for Identity-related products. The new fees will support reducing the deficit and contribute to the replacement of ageing technology.

The increase in revenue and expenses for the Kotui shared library and resource discovery service is due to growth in the number of libraries who have joined the service during 2016/17. Subscription costs will be reviewed periodically to ensure full cost recovery.

Community Funding Schemes (M15)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This appropriation increased by $149,000 to $17.792 million for 2016/17.

The increase in the Community Development Scheme category was due to:

• a reallocation of funding between grant schemes (increase of $500,000), and

• an expense transfer from 2015/16 to 2016/17 to provide flexibility to maximise community outcomes of resilience and sustainability (increase of $149,000).

The decrease in the Community Organisation Grants Scheme category was due to:

• a reallocation of funding between grant schemes (decrease of $500,000).

Community Information and Advisory Services (M41)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

How Performance will be Assessed for this Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $653,000 to $11.270 million for 2016/17.

The increase in the Advisory and Information Services to Ethnic Communities category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $354,000), and

• an increase in expenditure associated with an increase in SERCO costs for Language Line (increase of $283,000).

These increases were partially offset by:

• a reduction in the capital charge rate (decrease of $8,000).

The increase in the Community Archives Support category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $25,000).

The decrease in the Community Development and Engagement Advice category was due to:

• a reduction in the capital charge rate (decrease of $1,000).

Information and Technology Services (M41)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This appropriation increased by $3.134 million to $34.163 million for 2016/17.

The increase in the Cross-Government ICT Strategy and Planning, Service Delivery and Investment Proposals category was due to:

• expense transfers from 2015/16 to 2016/17 to enable the continuation and completion of various significant initiatives within the Result 10 Work Programme in 2016/17 ($750,000) and to enable the successful completion of the Result 9: Common Delegations and Information Sharing initiatives in 2016/17 due to the recommendations of the Result 9 panel endorsed by Ministers ($504,000).

This increase was partially offset by:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $769,000), and

• a reduction in the capital charge rate (decrease of $29,000).

The decrease in the Government Chief Privacy Officer category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $121,000).

The increase in the Government Information and Technology Services category was due to:

• an increase in expenditure associated with All-of-Government Common Capability Products due to demand, project expenditure for the ICT Market Place and Telecommunications as a Service and an increase in security related expenditure for existing products (increase of $2.029 million)

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $450,000), and

• funding for the ICT Market Place (increase of $400,000).

These increases were partially offset by:

• a reduction in the capital charge rate (decrease of $80,000).

Memorandum Account#

The forecasted increase in expenditure for 2016/17 reflects the continuing investment in ensuring the sustained value of current and new common capability products which will deliver greater system-wide benefits and choice to government agencies. The rate of recovery from deficit will depend on the uptake rate by government agencies and the fees applied.

Ministerial Support Services (M41)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

How Performance will be Assessed for this Appropriation#

Note 1 - Satisfaction performance measures involves using a five point scale, either numerical (1-5, with '5' the highest rating) or qualitative: Very Satisfied, Good, Satisfied, Poor, Very Unsatisfied.

Reasons for Change in Appropriation#

This appropriation increased by $131,000 to $2.624 million for 2016/17.

The increase in the Ministerial Support Services - Internal Affairs category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $131,000).

Policy Advice (M41)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

What is Intended to be Achieved with this Appropriation#

Note 1 -Satisfaction performance measures involves using a five point scale, either numerical (1-5, with '5' the highest rating) or qualitative: Very Satisfied, Good, Satisfied, Poor, Very Unsatisfied.

Reasons for Change in Appropriation#

This appropriation decreased by $270,000 to $11.443 million for 2016/17.

The decrease in the Policy Advice - Ethnic Communities category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $409,000).

The decrease in the Policy Advice - Internal Affairs category was due to:

• a reduction in the capital charge rate (decrease of $36,000), and

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $10,000).

The increase in the Policy Advice - Local Government category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $185,000).

Regulatory Services (M41)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This appropriation increased by $2.444 million to $43.008 million for 2016/17.

The increase in the Charities Regulation category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $499,000).

This increase was partially offset by:

• a reduction in the capital charge rate (decrease of $33,000).

The increase in the Regulatory Services category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (increase of $1.202 million)

• expenditure associated with gaming activities (increase of $649,000), and

• funding for the implementation of Phase II of the Anti-Money Laundering and Countering the Financing of Terrorism reforms (increase of $393,000).

These increases were partially offset by:

• a reduction in the capital charge rate (decrease of $266,000).

Memorandum Account#

Fees were reviewed and subsequently increased in 2016. The fees review is expected to result in a declining deficit balance. Fees are expected to be reviewed every three years to ensure full cost recovery and reduction of the deficit balance.

Services Supporting the Executive (M47)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This appropriation increased by $3.579 million to $43.487 million for 2016/17.

The increase in the Coordination of Official Visits and Events category was due to:

• funding for additional costs associated with a larger than anticipated programme of official visits and events (increase of $1.991 million).

This increase was partially offset by:

• a realignment of the revenue and expenditure baseline associated with the provision of services to third parties (decrease of $5,000), and

• a reduction in the capital charge rate (decrease of $3,000).

The increase in the Support Services to Members of the Executive category was due to:

• funding for fiscal pressures associated with new obligations under the Remuneration Authority's Members of Parliament (Accommodation Services and Travel Services for Family Members and Former Prime Ministers) Determination 2016 and changes to Ministerial portfolios following the resignation of the previous Prime Minister (increase of $648,000).

This increase was partially offset by:

• a reduction in the capital charge rate (decrease of $103,000), and

• a realignment of the revenue and expenditure baseline associated with the provision of services to third parties (decrease of $35,000).

The increase in the VIP Transport Services category was due to:

• a realignment of the revenue and expenditure baseline associated with an increase in demand and an increase in expenditure associated with the provision of VIP Transport (increase of $1.086 million).

Support for Statutory and Other Bodies (M41)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

What is Intended to be Achieved with each Category and How Performance will be Assessed#

Note 1 - Satisfaction performance measures involves using a five point scale, either numerical (1-5, with '5' the highest rating) or qualitative: Very Good, Good, Satisfied, Poor and Very Poor.

Reasons for Change in Appropriation#

This appropriation increased by $2.082 million to $18.140 million for 2016/17.

The increase in the Commissions of Inquiry & Similar Bodies category was due to:

• funding for the staff, travel, accommodation, professional fees and other operating costs associated with the Government Inquiry into Havelock North Drinking-Water (increase of $2.107 million).

The decrease in the Support for Grant Funding Bodies - Internal Affairs category was due to:

• a transfer of funding between departmental appropriations based on the provision of services across the portfolios within Vote Internal Affairs (decrease of $25,000).