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Year end financial statements

Summary Financial Statements of the Government of New Zealand for the Year Ended 30 June 2008

Fiscal Summary

for the year ended 30 June 2008

Fiscal Summary for the year ended 30 June 2008
Forecast Fiscal Strategy Fiscal Indicators/Financial Statements Actual

Original
Budget
$ billion

Estimated
Actuals
$ billion

30 June
2008
$ billion

30 June
2007
$ billion

31.6% 31.5% Taxes… Taxation as % of GDP 31.5% 31.7%
54.7 56.7   Core Crown taxation 56.7 53.5
5.8 4.5 … combined with other revenue… Other Core Crown operating items 4.2 7.0
(56.1) (57.4) … fund core Crown expenses… Core Crown expenses (57.0) (54.0)
2.0 (1.2) … and with the results of entities
outside the budget process…
Net surpluses/(deficits) of
SOEs and Crown entities
(1.5) 1.5
6.4 2.6 … results in a surplus or deficit…

Operating balance

2.4 8.0
(1.4) 2.6 …part of which is gains or losses set
aside for fiscal strategy purposes…
Other (gains)/losses 3.2 (2.1)
5.0 5.2 … and so we have developed an operating
indicator excluding these items.

OBEGAL

5.6 5.9
(0.1) Some of this is income retained
that is not available for fiscal purposes
Net return on NZS Fund (excl. revaluations) (0.1) 0.4
(1.7) (0.6)   Net retained surpluses of
SOEs and Crown entities
(0.8) (1.7)
1.8 2.4 ... and some is income and expenses
not impacting cash
Non-cash items and working
capital movements
2.6 4.0
5.0 7.0 The operating cash flow that results, needs
to provide sufficient funds for

Core Crown Cash flow from Operations

7.3 8.6
(2.1) (2.1) ... building up assets in NZ Superannuation Contribution to NZS Fund (2.1) (2.0)
(1.8) (1.5) ... meeting the capital expenditure budget, and Purchase of physical assets (1.4) (1.8)
(2.1) (2.5) ... making advances (eg, to students and DHBs) Advances and capital injections (1.7) (2.0)
(1.0) 0.9 with a residual impact on debt
consistent with fiscal strategy

Residual Cash

2.1 2.8
-0.6% 0.5%  

… and as a percentage of GDP

1.1% 1.7%

Summary Statement of Financial Performance

for the year ended 30 June 2008

Summary Statement of Cash Flows for the year ended 30 June 2008
Forecast   Actual

Original
Budget
$ billion

Estimated
Actuals
$ billion

30 June
2008
$ billion

30 June
2007
$ billion

   

Revenue

   
54.2 56.2 Taxation revenue 56.4 53.1
3.7 3.9 Other sovereign revenue 3.9 3.5
57.9 60.0

Total revenue levied through the Crown's sovereign power

60.3 56.6
13.3 13.7 Sales of goods and services 15.4 12.6
3.4 3.2 Interest revenue and dividends 3.2 3.0
2.4 2.9 Other revenue 2.6 2.4
19.0 19.8

Total revenue earned through operations

21.2 18.0
76.9 79.8

Total revenue (excluding gains)

81.5 74.6
   

Expenses

   
21.3 22.3 Social security and welfare 21.5 19.8
11.7 10.8 Health 10.8 10.0
10.3 10.8 Education 10.4 9.9
7.7 7.2 Transport and communications 7.4 6.9
17.9 20.7 Other functional expenses 22.6 19.2
2.7 3.0 Finance costs 3.1 2.9
0.3 (0.2) Forecasting adjustments
71.9 74.6

Total expenses (excluding losses)

75.8 68.7
5.0 5.2

Operating balance before gains and losses (OBEGAL)

5.6 5.9
1.4 (0.8) Net gains/(losses) on financial instruments (0.6) 1.6
(2.0) Net gains/(losses) on non-financial instruments (2.9) 0.5
1.4 (2.8)

Total gains/(losses)

(3.5) 2.1
0.1 0.2 Net surplus/(deficit) from associates and joint ventures 0.3 0.2
6.4 2.6

Operating balance from continuing activities

2.4 8.1
Gain/(loss) from discontinued operations (0.1)
6.4 2.6

Operating balance (including minority interest)

2.5 8.0
Operating balance attributable to minority interest in Air NZ (0.1)
6.4 2.6

Operating Balance

2.4 8.0
0.1 Total income/(expense) recognised directly in Net Worth 6.3 4.8
6.5 2.6

Total recognised income and expense

8.7 12.8

Summary Statement of Cash Flows

for the year ended 30 June 2008

Summary Statement of Cash Flows for the year ended 30 June 2008
Forecast   Actual

Original
Budget
$ billion

Estimated
Actuals
$ billion

30 June
2008
$ billion

30 June
2007
$ billion

   

Cash Flows From Operations

   
   

Cash was provided from

   
54.3 55.7 Taxation receipts 55.2 52.2
21.9 22.7 Other operating receipts 23.4 20.9
   

Cash was disbursed to

   
(19.5) (18.2) Social assistance and official development assistance (18.0) (16.3)
(44.4) (46.5) Personnel and operating payments (46.0) (41.9)
(2.5) (2.7) Interest payments (2.8) (2.4)
9.8 11.1

Net cash flows from operations

11.8 12.5
   

Cash Flows From Investing Activities

   
   

Cash was provided from

   
9.2 23.1 Sale of shares and other securities 26.2 20.0
1.4 2.5 Other capital receipts 1.7 2.6
   

Cash was disbursed to

   
(6.9) (6.2) Purchase of physical assets (5.3) (5.6)
(13.7) (28.0) Purchase of shares and other securities (32.3) (28.6)
(2.7) (3.3) Issue of advances (3.8) (2.9)
(0.3) (1.3) Purchase of other assets (0.8) (0.6)
(0.2) (0.7) Forecast adjustments
(13.2) (13.9)

Net cash flows from investing activities

(14.3) (15.0)
(3.4) (2.9)

Net cash flows from operating and investing activities

(2.6) (2.6)
   

Cash Flows From Financing Activities

   
   

Cash was provided from

   
0.2 0.3 Issues of circulating currency 0.1 0.1
3.9 3.3 Issue of  Government stock and treasury bills 2.8 2.9
2.2 2.7 Issue of other borrowing 3.4 8.5
   

Cash was disbursed to

   
(1.6) (1.0) Repayment of Government stock and treasury bills (1.1) (6.6)
(1.2) (1.3) Repayment of other borrowing (3.0) (1.8)
3.5 3.9

Net cash flows from financing activities

2.2 3.1
0.1 1.1

Net movement in cash

(0.4) 0.5
3.1 4.2 Opening Cash Balance 4.2 3.7
3.2 5.2

Closing Cash Balance

3.8

 

4.2

Summary Statement of Financial Position

as at 30 June 2008

Summary Statement of Financial Position as at 30 June 2008
Forecast   Actual

Original
Budget
$ billion

Estimated
Actuals
$ billion

30 June
2008
$ billion

30 June
2007
$ billion

   

Assets

   
3.2 5.2 Cash and cash equivalents 3.8 4.2
12.5 12.3 Receivables 14.2 12.1
35.1 36.4 Marketable securities, deposits and derivatives in gain 41.2 33.2
17.0 12.5 Share investments 13.0 13.6
12.8 13.9 Advances 12.9 10.7
96.0 98.4 Property, plant & equipment 103.3 95.6
10.7 11.6 Other assets 12.4 10.9
0.7 Forecast Adjustments
187.3 191.0

Total assets

200.8 180.3
   

Liabilities

   
3.7 3.7 Issued currency 3.5 3.4
9.0 8.4 Payables 10.9 8.1
0.8 1.0 Deferred revenue 1.3 1.0
46.4 45.5 Borrowings 46.1 41.9
19.0 20.8 Insurance liabilities 20.5 17.4
8.4 8.1 Retirement plan liabilities 8.3 7.2
3.9 4.0 Provisions 4.8 4.6
91.3 91.7

Total liabilities

95.3 83.5
96.1 99.4

Total assets less total liabilities

105.5 96.8
   

Net Worth

   
89.6 96.8 Net worth at start of year 96.8 84.0
6.4 2.6 Operating Balance excluding minority interest 2.4 8.0
0.1 Net revaluations and other movements 6.3 4.8
96.1 99.4

Total net worth

105.5 96.8

These summary financial statements comply with generally accepted accounting practice as it relates to summary financial statements.

The information in these summary statements is drawn from and is consistent with information presented in the full financial statements of the Government for the year ended 30 June 2008, which were the first NZ IFRS full financial statements. These were authorised for issue on 30 September 2008.

The Government is a public benefit entity and the full financial statements of the Government have been prepared in accordance with generally accepted accounting practice as it applies to such entities. The recognition and measurement disclosure changes resulting from the change to NZ IFRS were not significant in the context of this summary information. The full financial statements received an unqualified audit opinion.

These summary financial statements cannot be expected to provide as complete an understanding as provided by the full financial statements, which can be obtained from www.treasury.govt.nz/government/financialstatements/.