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Parliamentary Sector Annual Report 2019/20 Pūrongo ā-Tau o te Rāngai Pāremata 2019/20

Office of the Clerk of the House of Representatives Te Tari o te Manahautū o te Whare Māngai

Parliamentary Service Te Ratonga Pāremata Parliamentary Sector Annual Report 2019/20

Presented to the House of Representatives pursuant to section 44 (1) of the Public Finance Act 1989. I whakaurua ki Te Whare Māngai hei whakatutuki i te wāhanga 44 (1) o te Ture Pūtea Tūmatanui 1989.

ISSN 2703-3155

Copyright This copyright work is licensed under the Creative Commons Attribution 4.0 International licence. To view a copy of this licence, visit https://creativecommons.org/licenses/by/4.0/ In essence, you are free to copy, distribute and adapt the work as long as you attribute the work to the Clerk of the House of Representatives or the Parliamentary Service and abide by the other licence terms. Please note that the Office of the Clerk of the House of Representatives logo, Parliamentary Service logo and the House of Representatives crest may not be used in any way that infringes any provision of the Flags, Emblems, and Names Protection Act 1981. Attribution to the Office of the Clerk of the House of Representatives and Parliamentary Service should be in written form and not by reproduction of any logo or crest. To view a copy of the text to be used for attribution, please visit https://www.parliament.nz/en/footer/copyright/

Private Bag 18041 Parliament Buildings Wellington 6160 Phone: (04) 817 9999 Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 1

Contents Ngā Kōrero

2 Foreword: Speaker of the House of Representatives 3 Clerk of the House of Representatives and Chief Executive Parliamentary Service 5 Our Shared Highlights 2019/20

7 Office of the Clerk of the House of Representatives Annual Report 2019/20

8 About us

9 Our Highlights 2019/20 10 Our Workplace 11 Our Year in Review 18 Measuring our Performance 20 Speaker’s statement of responsibility for the year ended 30 June 2020 21 Statement of responsibility for the year ended 30 June 2020 22 Independent Auditor’s Report 27 Financial Statements

47 Parliamentary Service Annual Report 2019/20 48 About us 49 Our Highlights 2019/20 50 Our Workforce 54 Our Strategic Outcomes 59 Measuring our Performance 65 Statement of responsibility for the year ended 30 June 2020 66 Independent Auditor’s Report 71 Financial Statements

99 Financial Statements Non-departmental statements and schedules

119 Appendix A 2 AnnualParliamentary Report Sector2016 - Annual2017 Report 2019/20

Speaker of the House of Representatives Te Kupu Whakataki a te Mana Whakawā

This year has seen the Office of the Clerk of the House of Representatives and the Parliamentary Service operating under extremely unusual and unlikely circumstances.

When the country went into lockdown and staff and members were required to stay at home, the agencies quickly adapted to a new way of working. Flexibility and innovation were key and were evident in the way both agencies responded and continued to provide excellent service to Parliament and its members throughout the height of the pandemic. Of particular note was the largely seamless transition to remote working that Parliamentary Service IST enabled for hundreds of staff and members, and the high quality support provided by the Office to the Epidemic Response Committee, which was made easily accessible to all New Zealanders via livestream and broadcast television.

However, despite the challenges of COVID-19, the Office and the Service have remained focused and delivered much.

I am pleased to see the progress that the agencies have made on the recommendations of the Francis Review, alongside the Department of Internal Affairs. Twenty-nine of the recommendations were completed by 30 June with another 9 completed since, and I am already noticing positive changes in the parliamentary workplace. I particularly appreciate the agencies’ involvement in the development of the behavioural statements for the parliamentary workplace and look forward to seeing these embedded in the next Parliament.

The Office and the Service also supported and enabled significant changes to be made to the Standing Orders and the Speaker’s Directions in preparation for the 53rd Parliament and I would like to take this opportunity to thank the Clerk and the Chief Executive of Parliamentary Service for their work on these important changes.

Overall I am very satisfied with the service I have received from the Office and the Service over the past 12 months and I have noticed significant improvement from Parliamentary Service, in particular. I am confident that MPs and parliamentary parties have also experienced the same high levels of support and the results from recent surveys of the party whips reflect this.

I would like to commend both agencies on a successful year and acknowledge the work they do to ensure that our Parliament, and our elected representatives, can carry out their essential functions no matter the circumstances.

Rt Hon Trevor Mallard Speaker of the House of Representatives. Te Kupu Whakataki a te Mana Whakawā

10 November 2020 Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 3

Clerk of the House of Representatives and Chief Executive Parliamentary Service Te Manahautū o te Whare Māngai me te Tumuaki o te Ratonga Pāremata

While each year inevitably brings its own surprises and challenges, twists and turns, it’s safe to say that the past year was utterly unpredictable.

The first six months saw both agencies deliver work, as planned, towards our strategic objectives. Significant progress was made in a number of areas and, importantly, this included implementing a number of recommendations of the Francis Review which has set us firmly on the path to creating a safer, healthier parliamentary workplace for all. However, the global pandemic that gripped the world from early February 2020 provided us with a new, unexpected set of additional priorities and required us to deliver our services to New Zealand’s Parliament and its members in the most unique of ways.

For us, the mission was clear – to support Parliament to operate effectively – but just how to achieve it was completely uncharted territory. While we had never before experienced a challenge like this, our ongoing commitment to innovation, and our ability to be agile and flexible, served us well at this time. Both organisations devised a variety of temporary solutions to meet the unique demands of each is indicative of the deep relationship we have developed. situation and a number of these have since been adopted While each agency remains distinct, we believe our on a permanent basis. This recognises the benefits they growing partnership and shared emphasis on customer bring, in times of crisis and beyond, along with the need for service proved valuable when responding to the crisis parliamentary operations to continue to adapt and evolve and creating a way forward that enabled Parliament to to reflect the ever-changing environment around us. perform its duties to the people of New Zealand in a time of great need. In last year’s annual report we spoke of our two agencies working together as one team to help build a strong This report shares the story of our response to COVID-19 Parliament sector and this has continued over the past and describes how we supported Parliament and its year. The Parliamentary Agencies Delegations Legislation members effectively throughout the height of the Act 2019 was an important milestone in our journey and pandemic in New Zealand. 4 AnnualParliamentary Report Sector2016 - Annual2017 Report 2019/20

Of course none of our achievements this year would pandemic lessons have been learned, and lasting changes have been possible without our team of dedicated, have been implemented that make us well placed to knowledgeable and highly skilled people. Their expertise, support Parliament now and into the future. creativity and commitment to the task at hand enabled us to consistently deliver high quality services, as the We are pleased to present the Parliament Sector Annual circumstances demanded, all while adapting to their own Report including the reports of the Office of the Clerk of lives under lockdown restrictions. We thank them, and our the House of Representatives and Parliamentary Service leadership teams, for their efforts. for the year ending 30 June 2020.

Despite the circumstances meaningful progress has been made this year towards our strategic objectives. Against the backdrop of COVID-19 and in the wake of the global

David Wilson Rafael Gonzalez-Montero Clerk of the House of Representatives Chief Executive, Parliamentary Service Te Manahautū o te Whare Māngai Tumuaki o te Ratonga Pāremata

10 November 2020 10 November 2020 Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 5

Our Shared Highlights 2019/20 Ō Mātou Whakaharaharatanga 2019/20

COMPLETED 29 OF THE FRANCIS PARLIAMENT XR APP PARLIAMENTARY AGENCIES REVIEW RECOMMENDATIONS LAUNCHED IN TE REO MĀORI DELEGATIONS LEGISLATION ACT including the introduction of the 2019 RECEIVED ROYAL ASSENT behavioural statements for New Zealand Parliament

PRESENTED 6 PUBLIC COMBINED RECORDS PARLIAMENTARY LIBRARY AND WEBINARS ABOUT PARLIAMENT MANAGEMENT FUNCTION SELECT COMMITTEE SERVICES AND ELECTRONIC CONTENT PILOT PROGRAMME MANAGEMENT SYSTEM to provide independent advice and expertise

PARLIAMENT ON DEMAND SHARED CONSULTATION ON ONSITE EDUCATION LAUNCHED CREATING A MORE FAMILY PROGRAMMES FRIENDLY PARLIAMENT were delivered to 10,875 students 6 AnnualParliamentary Report Sector2016 - Annual2017 Report 2019/20 Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 7

Office of the Clerk of the House of Representatives Annual Report 2019/20 Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 8 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

About us Mō mātou

The Office of the Clerk (the Office) is established under Our primary customers are the Speaker of the House of section 14 of the Clerk of the House of Representatives Representatives and other presiding officers, members of Act 1988. The Office supports the Clerk of the House of the House of Representatives, select committees, the public Representatives in discharging the functions of the Office. service and New Zealanders who engage with Parliament Our core functions are: and their elected members. We also work closely with • Provision of services to the House and its committees parliaments internationally, with a particular focus on the Pacific. • Advocacy for Parliament through independent advice

• Recording, broadcasting, and communicating Our strategy is aligned with the priorities of Parliament parliamentary information and focuses on enabling and supporting an accessible • Building parliamentary capability and connections Parliament. • Connecting the public to Parliament and its members

How the Office is organised Te hanga o te Tari

The Office is organised into three business groups that The Office continually reviews its operating processes to deliver services under the Office’s two departmental adapt to changes in our operating environment, to generate output expenses: Secretariat Services for the House of efficiencies through the smart use of technology, andto Representatives and Inter-Parliamentary Relations. ensure our people are deployed most effectively. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 9

Our Highlights 2019/20 Ō Mātou Whakaharaharatanga 2019/20

10,203 PAGES 392 SELECT COMMITTEE Support provided for of Hansard published REPORTS 476 SELECT COMMITTEE presented to the House and published MEETINGS

Hours of PTV broadcast: 462 E-PETITIONS OPENED TRANSCRIBED 65 HOURS 608 HOURS AND 48 MINUTES FOR SIGNATURE AND 42 MINUTES on the Parliament website of ERC meetings

53 MEMBERS’ BILLS DRAFTED HOSTED 21 Implemented the INTERNATIONAL TAI A KIWA STRONGER PARLIAMENTARY VISITS PACIFIC PARLIAMENTS PROGRAMME 10 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Our Workforce in 2019/20 Tō Mātou Hunga Mahi i te tau 2019/20

Age The Office June 2020 We employ Public Service 2019 Part-time 21%

108 staff 33% (95.68 FTE) Full-time 24% 24% 22% 79% 17% 21% 17% 16%

12% 0% 10% 3% 0% 1%

15-19 20-29 30-39 40-49 50-59 60-69 70-79

Gender

The gender pay gap is 6.1%. This is less The Office Public Service Unplanned turnover than the Public Service (10.5%). (annualised): 15% Women hold 50% of leadership positions in the Office (top three tiers). Male 37% 39%

Female 63% 61%

Public Service average: 12%

Ethnicity European The Office June 2020 Public Service 2019

92% 67% Māori Pacific Asian Other 16% 11% 6% 9% 7% 7% 1% 1%

Our people identify with 13 different ethnicities. Note, ‘New Zealander’ is not counted as part of ‘other’.

Public Service statistics source https://www.publicservice.govt.nz/our-work/workforce-data/drill-down-data-cubes/ Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 11

Our Year in Review

Supporting Parliament’s response to COVID-19

Supporting the House of Representatives and its members of measures to enable the House to sit and committees amidst the COVID-19 restrictions was a unique challenge for to meet and the Office advised on, and drafted, all the Office this year. When faced with the global pandemic sessional orders (temporary standing orders) to give effect New Zealand’s Parliament was forced to adapt and respond to the arrangements agreed by parties at the Business at pace. With significant restrictions in place throughout the Committee. On March 19, the House unanimously alert levels, including physical distancing, limited travel and supported these. requirements to stay at home, the House of Representatives made a number of changes to its procedures to enable it to When the House was recalled to put in place measures continue to carry out its functions effectively. ahead of the shift to alert level 4, the Business Committee also agreed to support resolutions to better enable the The Office played a key role during this time, supporting Parliament to function during a period when it could not Parliament to be innovative, flexible and nimble in its meet physically. This included the establishment of the response to COVID-19. Our work throughout this period Epidemic Response Committee (ERC). contributed towards the Office’s strategic objectives in a range of ways which are outlined in this report. The support provided by the Office ensured the ERC was able to meet successfully in a matter of days. A significant Our strategic objectives: amount of preparation and testing was required to achieve • Increasing public awareness of the role of Parliament this within the short timeframe and staff from a range of and members, and public participation around the areas across the Office provided important contributions. work of Parliament The new sessional orders permitted the ERC to meet virtually • Promoting a more strategic approach to enhance and, via Zoom, they heard from a large number of Ministers, parliamentary effectiveness senior public servants, business and community leaders and independent experts. An experienced committee • Delivering excellent services to support parliamentary secretariat offered high quality support and expert advice scrutiny to members of the ERC throughout the lifespan of the • Building a stronger Parliament sector through the committee. development of the joint sector outcomes and related work programme (with the Parliamentary Service) Public interest in the proceedings of the ERC was • Developing and implementing an inter-parliamentary understandably high, as they offered members of the relations strategy that is fit-for-purpose public the opportunity to hear further detail about the • Creating a work culture that is innovative and focussed Government’s response and the Opposition’s scrutiny on continuous improvement of this. With meetings of the committee taking place remotely, the Office quickly turned its attention to ensuring • Creating an engaging workplace of choice, with proceedings were easily accessible for the public and media. a workforce that is aligned to our purpose and performance challenges In order to achieve the broadest reach possible, ERC In the weeks leading up to the nationwide lockdown meetings were livestreamed through Parliament’s social on March 25, the Office recognised the potential for media channels, via the Parliament website and, in a first, the pandemic to impact the operations of Parliament were broadcast on Parliament TV. This outcome was and preparations were made to ensure the work of the significant, given the short timeframe and constraints House of Representatives could continue, as appropriate. of remote working and has set a precedent for future The Office provided a range of options and advice to broadcasting of select committee meetings. Parliament’s Business Committee (chaired by the Speaker of the House) on how the House of Representatives could Overall, between 31 March and 21 May, the Office prepare for, and respond to, a possible spread of the virus broadcast and livestreamed 68 hours and 18 minutes over in New Zealand. The committee agreed to support a range 23 meetings of the ERC1. Our statistics show that each

1 There were 24 meetings of the ERC in total. One meeting (13 May) was not broadcast on PTV due to a conflict with the House sitting under urgency from 9am – 1pm. This meeting was still livestreamed. 12 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

meeting of the ERC had an average of 133,000 live views As alert levels decreased, other temporary arrangements on official Parliament channels, which are managed by the were introduced to allow the House to sit while still adhering Office (with an average of 200,000 total views per meeting2). to travel restrictions and safety measures. Significantly, The highest number of live views for a single meeting was changes made to party voting meant that members did not 259,000 (out of a total 416,000 views). These views are only have to be on the parliamentary precinct to vote and that for Parliament channels and do not include views via media proxy votes could be exercised for the entirety of a party’s outlets, or others, who may have embedded the official membership in the House. Parliament stream into their own channels. For example, we worked with the social media teams from the parliamentary Further new sessional orders introduced a number of other parties to cross-post meetings of the ERC to their own changes in House procedures. These were advised upon Facebook pages for the first time. This has since been used and implemented by the Office, requiring wide-ranging for streaming Budget Day speeches and select committee changes to our normal processes and operations. These meetings. included changes to previously paper-based procedures such as the lodging of oral questions, urgent questions and 23 hearings of the ERC were transcribed by the Hansard notices of motion to reduce the need for members and team3, amounting to a total of 65 hours and 42 minutes staff to physically meet at Parliament. Support and advisory and a more efficient process for the publication of the services were also provided by the Office to the Regulations transcripts was used so that these could be made available Review Committee to assist with its scrutiny of secondary to the public as soon as possible. legislation made in response to the outbreak of COVID-19.

We commissioned Colmar Brunton to undertake some At alert level 3 the House returned to regular sittings. research about public awareness and viewership of select However members continued to observe 2 metre physical committees during the lockdown period. distancing with generally no more than 31 members in the chamber at any one time. Staff did not return to the chamber The results showed that the intensive broadcasting activity (other than the Clerk and Serjeant-at-Arms) which required of the Epidemic Response Committee led to a measurable the Office to be creative in how we supported members. increase in awareness of and engagement with select The rapid passage of COVID-19 related legislation during committees. this time required the Office to operate at pace, with new processes to meet the demands of each situation. Key findings include: • New Zealanders’ awareness of select committees Restrictions to combat COVID-19 limited sittings of the increased significantly (from 80% to 85%) House but also provided Parliament with the opportunity to • New Zealanders are six times more likely to have experiment with more flexible, innovative ways of operating. watched or listened to a select committee after The lockdown occurred during the middle of the triennial lockdown than before review of Standing Orders which takes place towards the end of each parliamentary term and is an opportunity for • Viewership and listenership via livestream on the Standing Orders Committee to recommend changes Facebook doubled during lockdown. to parliamentary practice and procedure to improve how A number of other temporary measures were put in place the House carries out its key functions. All temporary rule to enable other committees to continue meeting during the changes made in order for Parliament to operate under lockdown. The Speaker immediately approved committees COVID-19 restrictions were retained as permanent changes meeting remotely, by electronic means, and during alert to the Standing Orders, not only to provide flexibility while levels 3 and 4, 46 select committee meetings took place via COVID-19 remains a threat, but because the changes Zoom. proved valuable and improved Parliament’s scrutiny and engagement functions. Despite the compressed timeframe This change was formalised in August 2020 with permanent for consideration, caused by COVID-19, other substantial changes to the Standing Orders. With fully remote changes have also been made in such areas as petitions, meetings now possible, members are no longer required legislative procedures, and more effective use of House sitting to be located in one space to participate, which allows hours. We look forward to supporting the implementation of meetings to take place more easily and provides members the new Standing Orders in the 53rd Parliament. with greater flexibility in their busy schedules.

2 Total views includes later ‘on demand’ viewing on Parliament’s Facebook and Vimeo. 3 There were 24 meetings of the ERC in total. One meeting was not transcribed as it was not a hearing of evidence. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 13

The Office has a high performing, dedicated workforce We also took this opportunity to canvass employees’ and it was important that we paid extra attention to their interest in ongoing opportunities for flexible work and this wellbeing amidst COVID-19. Not only were they dealing led to the release of a refreshed flexible work policy in June with extra work-related challenges, many were also juggling 2020. A number of employees agreed alternative working additional pressures such as child care and home-schooling arrangements, including options like condensed hours, in what was an uncertain and unsettling time.Our managers remote working and alternative hours of work. responded with care and empathy, checking in with their people more frequently and ensuring opportunities for Operating through a global pandemic certainly provided the team connection and collaboration were not lost. Senior Office with challenges but also acted as a catalyst for creating management visibility increased during the lockdown, positive change. Our ongoing commitment to innovation recognising that people need clear, consistent guidance served us well during this time and we have applied the from their leaders during times of change. Fortnightly all- lessons learned to improve our practices and enhance Office meetings took place along with twice-weekly video our role as New Zealand’s champions of representative updates from members of the Senior Leadership Team. parliamentary democracy. The Office emerged from the COVID-19 lockdown period stronger as a team, and as an The Office conducted two pulse surveys of our people organisation, confident in our ability to support Parliament during lockdown so that we could better understand and its members to carry out their duties effectively, in all how they were feeling and ensure that we were providing circumstances. appropriate levels of support. The feedback showed that our people were largely feeling positive, well cared for and able Whilst the second half of the past year was dominated by to work from home effectively, despite the circumstances. responding to COVID-19, the Office also made significant Eighty-nine per cent reported feeling well supported and progress in a number of other areas during 2019/20. These connected to their team and all employees felt trusted are outlined below. to work productively while working remotely. Our people demonstrated great resilience, commitment and initiative throughout this period.

Engaging and connecting people with Parliament

Over the past year the structure of the new Parliamentary In our desire to better understand the preferences of Engagement team, comprising employees from both the teachers and to assist with future resource and programme Office and the Service was embedded. Delivery onthe development, we have also established a teacher reference Parliamentary Engagement Strategy 2018 - 2021 has group, comprising a range of experienced teachers at continued at pace with the expansion and streamlining of different levels and conducted a national survey of teachers, the shared functions. which garnered over 3,300 responses.

Building our education offerings Research into public perceptions of Parliament While onsite education visits were suspended during Research conducted in November 2019 by Colmar COVID-19 Alert Levels 2, 3 and 4 we took this opportunity to Brunton on public perceptions of Parliament showed that think more creatively about how we deliver our education while most results were stable, there had been a slight offerings. Our new webinar programme emerged as a result shift backwards on some measures. Colmar Brunton and we delivered six webinars, each focused on a different concluded that this was likely caused by a number of aspect of Parliament and presented by expert panellists. events that occurred in 2019 that were beyond the control After receiving excellent feedback from attendees, the of Parliament’s engagement strategy, such as the findings webinar programme now continues as a regular offering. of the independent review into bullying and harassment at Parliament. The time away from hands-on teaching during lockdown also saw the creation of new resources about Parliament. The resources are linked closely to the curriculum to ensure alignment with required learning outcomes and assist teachers with planning. 14 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

The research found positive gains in some areas: Youth Parliament 2019 • More New Zealanders creating or signing a petition in The Office supports the delivery of the triennial Youth the past year Parliament programme alongside the Ministry for Youth Development and others. While the entire programme spans • More New Zealanders feeling that Parliament has approximately six months, the highlight and culmination of recently dealt with an issue they care about the programme is the two-day event which took place at • Young New Zealanders feeling a greater sense of Parliament on 16 and 17 July 2019. This involved bringing ownership of Parliament, and being more committed the 120 Youth MPs and 20 Youth Press Gallery members to taking part in democratic processes in future from across New Zealand to Parliament.

A virtually accessible Parliament In 2019 we sought to increase accessibility and replicate Parliament’s virtual reality app launched successfully in parliamentary processes as much as possible. For example: November 2018 and this year we followed that up by • This was the first Youth Parliament event that was live releasing a full te reo Māori version of the app. Users can broadcast on PTV easily toggle between the te reo Māori and English versions • Submissions on the select committee inquiry topics and both versions are captioned. were opened up to the public. Some schools used this Website enhancements as an opportunity to show students how a submission is made. A number of enhancements have been made over the past year to improve performance and usability of Parliament’s • The Youth Parliament select committees reported website. back to the parallel select committees of the New Zealand Parliament. In seven instances, a Youth Parliament on Demand (launched in May 2020) provides MP spoke directly to their respective committee direct access to a livestream of Parliament TV, and on to share information that had been discussed and demand access to all televised speeches made in the House recommendations that had been made. of Representatives dating back to December 2009 – all in In a post-event survey, 80% of participants rated the Youth one place. The site showcases the rich variety of informative Parliament programme as ‘very good’. and educational videos available about Parliament, including the Spotlight, Taonga of Parliament and Looking Back series, Extending New Zealand Sign Language and videos about events at Parliament. Interpretation is already provided for set events in the House (for example, Budget Day and during New Zealand Work has also progressed on improving the speed and Sign Language Week), however over the past year we accuracy of the website’s search functionality to provide increased interpretation to include other items that were more relevant results for users. A number of areas have likely to be of high public interest such as the: already been completed and the next year will see us work • Election Access Fund Bill to cleanse the metadata used by the search function. • End of Life Choice Bill

We believe that information about Parliament and the • COVID-19 Response (Taxation and Social Assistance participation opportunities available through the website Urgent Measures) Bill (such as e-petitions and online submissions) must be • COVID-19 Response (Urgent Management Measures) equally accessible to all. Accessibility challenges had been Legislation Bill, and reported by members of the community and the Office • first reading of the Abortion Legislation Bill. embarked on a comprehensive external accessibility audit to determine areas for improvement. We now have a clear We also investigated ways of increasing NZSL interpretation understanding of what is required to increase accessibility by increasing the pool of interpreters available and this of the website and will work to address priority issues over work continues. the coming year. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 15

Delivering excellent services to support parliamentary scrutiny

COVID-19 aside, this year also saw a number of high profile Legislation Committee Facebook page was also established bills progress through Parliament including the Climate at this time to livestream meetings of the committee and Change Response (Zero Carbon) Amendment Bill, the inform its audience of important deadlines around the Abortion Legislation Bill and the Arms Legislation Bill. Abortion Legislation Bill.

The Climate Change Response (Zero Carbon) Amendment The aforementioned items of business, alongside many Bill received over 10,000 submissions, with 800 oral others over the course of the year, created a substantial submissions heard by the Environment Committee. To workload for committees, who were ably supported by the hear from a wide range of submitters, the committee split select committee services team, according to the unique into two sub-committees and travelled to seven different demands of each situation. regions throughout Aotearoa in August and September. The Māori Affairs Committee also continued its in-person Parliamentary Practice in New Zealand outreach this year, holding meetings at a range of centres In the year under review, the Office began work on updating on the Inquiry into Health Inequities for Māori, Ngāti Parliamentary Practice in New Zealand. This text is the Hinerangi Claims Settlement Bill and the Ahuriri Hapū authoritative source on how New Zealand’s Parliament Claims Settlement Bill. operates and ensuring that new editions are published in a timely way is a major undertaking. As well as capturing key A select committee was established to examine the Abortion changes to practice and procedure since the last edition, Legislation Bill. Over 25,000 submissions were received the update will have a focus of making information about and 30 hours of evidence was heard by the committee at Parliament as accessible as possible. a number of locations around the country. The Abortion

Building a stronger Parliament sector

The relationship between the Office and the Service continues Delivering higher quality services while also achieving to deepen and, over the past year, the development of greater efficiencies remained an objective for both agencies shared strategic objectives, followed by a joint business over the past year. To this end, we have continued aligning planning process, has brought the two agencies into greater a number of our corporate services functions. Not only alignment than ever before. While they retain distinct focuses, does this convergence remove duplication and streamline the two organisations aim to cooperate closely where that is our services, it also strengthens and enhances the support desirable to best support Parliament. we provide through maximising the collective skills and knowledge of our people. Parliamentary Agencies Delegations Legislation Act 2019 To allow closer working arrangements between the Office During the 2019/20 year both agencies’ information and the Service and for truly integrated, cross-agency teams management teams were co-located and what had to operate effectively, staff from one agency needed to have previously been two electronic content management the authority to delegate to employees of the other agency. systems were merged into one system with support provided by the Parliamentary Service Information To achieve this, an omnibus bill was introduced to amend Management Team. Further work is underway for the year the Parliamentary Service Act 2000 and the Clerk of the ahead to deliver information management as a service to House of Representatives Act 1988 to empower delegation the Office of the Clerk as part of the Parliamentary agencies’ between the agencies' staff. The bill was considered by commitment to resource sharing and business efficiencies. the Governance and Administration Committee and the Parliamentary Agencies Delegations Legislation Act 2019 The Parliamentary Service now also provides the full range received Royal assent on 16 November 2019. The Act was of HR services and support to the Office of the Clerk. a significant milestone in ensuring the agencies can work Significant improvements in service quality have been seamlessly together to provide excellent services, while achieved over the past year and we are increasingly satisfied retaining their distinct roles and responsibilities. with the expert advice and guidance offered to our people. Internal vacancies and secondment opportunities are also Further shared services 16 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

open to employees of both the Office and the Service, Hon Anne Tolley4. All staff and members were given multiple creating enhanced career development and knowledge opportunities to contribute to the code’s creation and their sharing opportunities. feedback was influential in shaping it. We also conducted research on codes in place for other public and private Creating a healthy parliamentary workplace culture sector organisations as well as overseas jurisdictions. The The findings of the external independent review into behavioural statements, which lay out expectations for how bullying and harassment in the parliamentary workplace we interact and work with each other at Parliament, were were released in May 2019. At that time both the Office released near the end of the 52nd Parliament. The Steering and the Service made a commitment to change and during Group did not agree to the draft mechanism for addressing the past year, working alongside Ministerial Services of misconduct by members proposed by the Clerk and further the Department of Internal Affairs (DIA), we have made work will continue to develop an appropriate mechanism in significant progress on the review’s 85 recommendations. the 53rd Parliament.

As of 30 June 2020, 29 of the recommendations have been The external independent review into bullying and implemented with another 40 underway. Since that time harassment in the parliamentary workplace contained another 9 recommendations have been addressed. few recommendations specific to the office, but we have contributed fully to any joint initiatives. Some key highlights The development and implementation of a code of conduct for us include offering increased pastoral care and for the parliamentary workplace was one of the largest and counselling support on precinct, and rolling out Vault to all most ambitious recommendations made by the reviewer. Office of the Clerk staff to enable better management of We have focused much attention on this over the past and reporting on health, safety, and wellbeing issues. It also year as we see it as a cornerstone to creating a healthy provides a confidential channel through which bullying and parliamentary workplace for staff and members alike. Work harassment concerns can be raised. to develop the code was driven by the cross-Parliament Code of Conduct Steering Group, led by the Deputy Speaker,

A fit-for-purpose inter-parliamentary relations strategy

The past year saw us continue to deliver a high-quality February 2020 and an exchange with Tongan electorate staff inter-parliamentary relations programme. We supported in March 2020. There has been renewed engagement with 22 outward delegations visiting other parliaments and the Pacific at the highest levels with Guest of Parliament visits countries, hosted 21 international parliamentary visits, to New Zealand from French Polynesia and New Caledonia and delivered four conferences. We also assisted MPs with and our Speaker leading a delegation to the Kingdom of their professional development. The COVID-19 pandemic Tonga and the Republic of Fiji. We are also pleased that we disrupted the programme in the second quarter of 2020, could move the Pacific staff study programme online in 2020, but many activities have taken place virtually including the when COVID-19 travel restrictions meant that it could no Speaker’s bilateral calls with counterparts and a range of longer be delivered in person. webinars. We provide secretariat support to the seven regional A key achievement of the year was implementing the Parliamentary Friendship Groups (PFGs). Through the PFGs, Tai a Kiwa Stronger Pacific Parliaments programme and members meet with inward parliamentary delegations and increasing our technical assistance and capacity building engage in other activities relating to the region with which work with Pacific parliaments. We have supported Pacific they are affiliated. This year we initiated a new outwards nations with procedural and professional development. We opportunity, with the New Zealand – South and South do so by regularly convening regional meetings, providing East Asia Parliamentary Friendship Group undertaking a a communications hub for regional inter-parliamentary successful visit to India and Indonesia. activities and information, and seconding technical experts to assist in-country. Highlights from this year include hosting New Zealand has again actively participated in inter- the 3rd Pacific Parliamentary Forum in November 2019, parliamentary organisations’ efforts to strengthen the Pacific Women Parliamentarians meeting with Niue in democracies globally. This year we partnered with the

4 Committee membership: Hon Anne Tolley (Chair), Barbara Kuriger (National party), Angie Warren-Clark (Labour party), Hon Tracey Martin (New Zealand First), Jan Logie (Green Party), David Wilson (Office of the Clerk of the House of Representatives), Rafael Gonzalez- Montero (Parliamentary Service), Peter Murray (Department of Internal Affairs), Lauren Hourigan (Public Service Association), Paul Tolich (E tū), Sam Sachdeva (Press Gallery), Kura Moeahu (Tumu Whakarae, Parliamentary Service) Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 17

Inter-Parliamentary Union to host a conference on security, also taken up opportunities to append professional disarmament, and nuclear non-proliferation involving the development to outwards opportunities, making valuable participation of parliamentarians and experts from the contacts and growing portfolio and policy knowledge. Pacific and beyond. The coming year’s focus is delivering the new Inter- Our MPs have continued to engage with activities to Parliamentary Relations Strategy in the new Parliament and advance sustainable development, human rights, women communicating these parliamentary diplomacy activities in leadership, and democratic governance. Many have more widely.

An engaged workforce that is aligned to our purpose and performance challenges

The Office has a committed, highly skilled workforce that • Ensuring that recruitment processes are free of consistently delivers high quality services in alignment with gender bias and providing unconscious bias training to our purpose, performance challenges and values. As in recruiting managers. previous years, this year the Office continued to focus on ensuring our people have a safe and supportive working An engaged workforce environment in which they can learn, develop their skills and The Office conducted its annual employee engagement perform to the best of their ability. Staff participated in a survey in September and it was pleasing to see that our range of professional development opportunities, including people enjoy working for the Office and are proud of the exchanges, along with several courses and seminars bringing services we provide. It also highlighted a need for us to focus together participants from Westminster parliaments around more attention on having the right technology in place to the world. support our processes and enhance our service delivery. There are multiple projects already underway to address Secondments across teams, and with the Parliamentary this. In July 2020, the Office completed its next annual Service, are also a regular opportunity and help to build engagement survey. The results showed improvements in understanding and knowledge of the wider work of the Office a number of areas from the 2019 survey and an overall six and Parliament more generally. percent increase in employee engagement.

Diversity and inclusion A new Collective Agreement The Diversity and Inclusion Committee formed in 2018 and This year the Office worked with the Public Service Association launched their strategy last year. Mental wellbeing was the (PSA) to develop a new Collective Agreement, which was committee’s focus during 2019. The committee’s idea of signed in March. Key features of the agreement include: providing a specific mental health awareness course for • Extending coverage to all staff except managers and Office staff was implemented and a two-day programme on three specialist roles that provide advice to the Clerk. mental health awareness and managing mental health was • Changes to the remuneration bands to assist also organised for Office managers. recruitment and retention.

The committee was also responsible for establishing a • Clarification of overtime and penalty rate provisions. mentoring programme, revitalising te reo Māori courses for In consultation with the PSA, the Office also undertook job Office staff and celebrating Matariki. evaluation of all positions within coverage of the Collective Agreement to ensure that all roles are placed in the The Office is pleased to report that women now occupy 50 appropriate remuneration band. per cent of leadership roles this year as well as a narrowing of the gender pay gap to 6.1%. The Office makes a conscious Increased support to manage new services effort to address the reasons behind the gender pay gap. The Office needs to be flexible in our operations in order to Steps that have been taken include: respond to the changing demands of Parliament. To this end, • Monitoring male and female salary increases to ensure the structure of the House Office team was reviewed over the equity. past year to ensure we had the right staffing levels and skills to manage the increase in work. This resulted in an increase • Encouraging female staff to apply for management in staffing and the amalgamation of the Parliamentary Officer roles internally. (Table) and Parliamentary Officer (Papers) roles into a new • Providing leadership training and opportunities to Parliamentary Officer (House) role, which encompasses a female staff who aspire to management roles. wider range of responsibilities. 18 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Measuring our Performance Te whakawā i tō mātou whanonga

This performance information on appropriations describes the two output expenses that the Office of the Clerk was funded to deliver in 2019/20. Combined, these two output expenses support the achievement of the Office’s strategic intentions set out on pages 15-21 of this annual report. Those pages provide further information on the significant progress and key achievements the Office made using expenditure from these appropriations to enhance the effectiveness of Parliament as an institution.

Impact of COVID-19 on performance standards COVID-19 did not have an impact on the achievement of the Office of the Clerk’s performance standards.

Secretariat Services for the House of Representatives

This appropriation is limited to the provision to the House of Representatives of professional advice and services designed to assist the House in the fulfilment of its constitutional functions, and enabling participation in, and understanding of, parliamentary proceedings.

Result Target Result Performance indicator 2018/19 2019/20 2019/20 Services to the House and committees All procedural advice to presiding officers, committee chairpersons and Not met on 100% 100% members is accurate, practical and politically aware one occasion Members have the information and services they require to perform the One measure legislative and scrutiny functions at each sitting of the House and meetings 100% 100% not met in two of select committee instances5 All resolutions of the House and committees, debates in the House and select committee evidence are accurately recorded, published and 100% 100% 100% maintained in accordance with the Standing Orders and practices of the House All written and oral questions are scrutinised to the Speaker’s Satisfaction 100% 100% 100% All bills are certified as being printed as passed by the House and bills are 100% 100% 100% prepared for assent in a timely basis and in the order passed by the House All committee reports are accurate and reflect the views of the committee 100% 100% 100% Public information Sittings of the House of Representatives are broadcast in accordance with 100% 100% 100% Standing Orders Specialist procedural and legal advice All legal advice complies with quality standards and is timely 100% 100% 100% All policy developments that significantly affect Parliament have the Clerk’s input 100% 100% 100% The registrar is satisfied with all advice on registration of pecuniary Not met in one 100% 100% interests and that all requests for significant advice are peer reviewed instance6

5 On two occasions the wrong version of oral questions was provided to MPs in the Chamber 6 On one occasion inaccurate advice was provided Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 19

Law drafting services Proportion of members’ bills, prepared with the assistance of the OOC, 100% 90% 100% drafted and printed are peer reviewed Proportion of members’ proposed amendments to bills, prepared with the assistance of the OOC, drafted and printed on supplementary order 100% 80% 100% papers are proofread (NZOD) The proportion of instructing members we survey that indicate satisfaction 100% 90% 100% with the quality and timeliness [of drafting]

Financial Performance Secretariat Services for the House of Representatives (Figures are $000s and GST exclusive) Unaudited

2020 2020 2020 Actual Main Estimates Supp Estimates

Total Expenditure 19,477 20,423 20,812

Inter-parliamentary Relations

This appropriation is intended to build the capability of the New Zealand Parliament and its elected members and advance New Zealand’s collective interest through engagement with international parliamentary organisations and other parliaments, contributing to parliamentary strengthening in the Pacific, and Speaker-led diplomacy.

Result Target 2019/20 Result Performance indicator 2018/19 2019/20

All advice to Speaker and members about inter-parliamentary relations 100% 100% 100% is accurate, practical and politically aware

The Speaker approves the annual inter-parliamentary programme and 100% 100% 100% it is executed to the satisfaction of the Speaker and members

The CPA and IPU Executive Committee and CPA and IPU Groups have all the information required to make decisions supporting engagement 100% 100% 100% with inter-parliamentary organisations

The Commonwealth Parliamentary Association (CPA) Pacific Regional Meetings have the information required to make decisions affecting 100% 100% 100% the region

Financial Performance Inter-parliamentary Relations (Figures are $000s and GST exclusive) Unaudited

2020 2020 2020 Actual Main Estimates Supp Estimates

Total Expenditure 949 785 1,465 20 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Speaker’s statement of responsibility for the year ended 30 June 2020 Te tauākī haepapa a te Mana Whakawā mō te tau i oti i te 30 Pipiri 2020

The work of the Office of the Clerk of the House of Representatives is largely demand driven by the House, committees and members of Parliament. The Office of the Clerk provides services for the sittings of the House and meetings of committees to facilitate the consideration of legislation and scrutiny of government activity and public participation in the legislative and scrutiny processes. In no case can the Office control the number of bills introduced, inquiries held, questions asked or submissions received from the public.

As Speaker, I am the Responsible Minister for the Office. But, more importantly, there is a constitutional relationship with the Clerk of the House in the matter of the provision of accurate and independent professional procedural advice, which aims to ensure that members are able to perform their constitutional duties and a properly functioning legislature is maintained. The role of the Clerk and the staff of his Office contribute to the maintenance of a functioning democracy.

As Speaker, I am in regular contact with the members on sitting days and members have opportunities to raise with me any matters of concern or commendation on the performance of the Office. I am therefore satisfied that I can affirm that the standards stated in this section, and the performance against them, are accurate and have been met to my satisfaction.

The Rt Hon Trevor Mallard Speaker of the House of Representatives.

10 November 2020 Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 21

Statement of responsibility for the year ended 30 June 2020 Te tauākī haepapa mō te tau i oti i te 30 Pipiri 2020

I am responsible, as Clerk of the House of Representatives, for: • The preparation of the Office of the Clerk of the House of Representatives’ financial statements, and statements of expenses and capital expenditure, and for the judgements expressed in them. • Having in place a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting. • Ensuring that end of year performance information on each appropriation administered by the Office of the Clerk is provided in accordance with sections 19A to 19C of the Public Finance Act 1989, whether or not that information is included in the Annual Report. • The accuracy of any end of year performance information prepared by the Office of the Clerk, whether or not that information is included in the Annual Report.

In my opinion: • The financial statements fairly reflect the financial position of the Office of the Clerk as at 30 June 2020 and its operations for the year ended on that date. • The forecast financial statements fairly reflect the forecast financial position of the Office of the Clerk as at 30 June 2021 and its operations for the year ending on that date.

David Wilson Clerk of the House of Representatives Te Manahautū o te Whare Māngai

10 November 2020 22 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Independent Auditor’s Report Tā te kaiarotake pūrongo

To the readers of the Office of the Clerk of the House of Representatives’ annual report for the year ended 30 June 2020 The Auditor-General is the auditor of the Office of the Clerk of the House of Representatives (the Office of the Clerk). The Auditor-General has appointed me, John Whittal, using the staff and resources of Audit New Zealand, to carry out, on his behalf, the audit of:

• the financial statements of the Office of the Clerk on pages 28 to 43, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2020, the statement of comprehensive revenue and expense, statement of changes in taxpayers’ funds, and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; • the performance information prepared by the Office of the Clerk for the year ended 30 June 2020 on pages 13 to 19 • the statements of expenses and capital expenditure of the Office of the Clerk for the year ended 30 June 2020 on pages 44 to 45.

Opinion In our opinion: • the financial statements of the Office of the Clerk on pages 28 to 43: - present fairly, in all material respects: • its financial position as at 30 June 2020; and • its financial performance and cash flows for the year ended on that date; and - comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Standards Reduced Disclosure Regime. • the performance information of the Office of the Clerk on pages 13 to 19: - presents fairly, in all material respects, for the year ended 30 June 2020: • what has been achieved with the appropriation; and • the actual expenses or capital expenditure incurred compared with the appropriated or forecast expenses or capital expenditure; and - complies with generally accepted accounting practice in New Zealand. • the statements of expenses and capital expenditure of the Office of the Clerk on pages 44 to 45 are presented fairly, in all material respects, in accordance with the requirements of section 45A of the Public Finance Act 1989.

Our audit was completed on 10 November 2020. This is the date at which our opinion is expressed.

The basis for our opinion is explained below, and we draw attention to the impact of Covid-19 on the Office of the Clerk. In addition, we outline the responsibilities of the Clerk of the House of Representatives and our responsibilities relating to the information to be audited, we comment on other information, and we explain our independence.

Emphasis of matter – Impact of Covid-19 Without modifying our opinion, we draw attention to the disclosures about the impact of Covid-19 on the Office of the Clerk as set out in note 15 to the financial statements and page 18 of the performance information. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 23

Basis for our opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of the Clerk of the House of Representatives for the information to be audited The Clerk of the House of Representatives is responsible on behalf of the Office of the Clerk for preparing:

• financial statements that present fairly the Office of the Clerk’s financial position, financial performance, and its cash flows, and that comply with generally accepted accounting practice in New Zealand.

• performance information that presents fairly what has been achieved with each appropriation, the expenditure incurred as compared with expenditure expected to be incurred, and that complies with generally accepted accounting practice in New Zealand.

• statements of expenses and capital expenditure of the Office of the Clerk, that are presented fairly, in accordance with the requirements of the Public Finance Act 1989.

• the Clerk of the House of Representatives is responsible for such internal control as is determined is necessary to enable the preparation of the information to be audited that is free from material misstatement, whether due to fraud or error.

In preparing the information to be audited, the Clerk of the House of Representatives is responsible on behalf of the Office of the Clerk for assessing the Office of the Clerk’s ability to continue as a going concern. The Clerk of the House of Representatives is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless there is an intention to merge or to terminate the activities of the Office of the Clerk, or there is no realistic alternative but to do so.

The Clerk of the House of Representatives’ responsibilities arise from the Public Finance Act 1989.

Responsibilities of the auditor for the information to be audited Our objectives are to obtain reasonable assurance about whether the information we audited, as a whole, is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers, taken on the basis of the information we audited.

For the budget information reported in the information we audited, our procedures were limited to checking that the information agreed to the relevant Estimates and Supplementary Estimates of Appropriations 2019/20 and 2019/20 forecast financial figures included in the Office of the Clerk’s 2018/19 annual report.

We did not evaluate the security and controls over the electronic publication of the information we audited. 24 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

• We identify and assess the risks of material misstatement of the information we audited, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Office of the Clerk’s internal control.

• We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Clerk of the House of Representatives.

• We evaluate the appropriateness of the reported performance information within the Office of the Clerk’s framework for reporting its performance.

• We conclude on the appropriateness of the use of the going concern basis of accounting by the Clerk of the House of Representatives and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Office of the Clerk’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the information we audited or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Office of the Clerk to cease to continue as a going concern.

• We evaluate the overall presentation, structure and content of the information we audited, including the disclosures, and whether the information we audited represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Clerk of the House of Representatives regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

Other information The Clerk of the House of Representatives is responsible for the other information. The other information comprises the information included on pages 1 to 46, but does not include the information we audited, and our auditor’s report thereon.

Our opinion on the information we audited does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

Our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the information we audited or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 25

Independence We are independent of the Office of the Clerk in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1: International Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

In addition to the audit we have carried out engagements in the area of review of the register of pecuniary and other specified interests of Members of Parliament and audit of the Broadcasting Levy Return, which are compatible with those independence requirements. Other than the audit and these engagements, we have no relationship with, or interests in, the Office of the Clerk.

John Whittal Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand 26 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020 Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 27

Office of the Clerk of the House of Representatives Annual Report Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai

Financial Statements 30 June 2020 Taukī Pūtea 30 Pipiri 2020

Key to the financial statements Ngā Whakamārama ki ngā Taukī Pūtea

Additional information

Judgements and estimates

Notes to the statements

Policies and procedures 28 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Financial Statements Taukī Pūtea

Statement of comprehensive revenue and expense For the year ended 30 June 2020

Unaudited 2019 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 Notes $000 $000 $000 $000

Revenue

20,937 Crown 21,719 20,770 21,719 21,656

122 Department 291 59 488 59

23 Other revenue 65 - 70 - 21,082 Total revenue 22,075 20,829 22,277 21,715

Expenses

8,099 Personnel 2 9,206 8,413 8,823 9,060

9,594 Operating expenses 3 9,254 10,345 11,463 10,414

1,903 Depreciation and amortisation 6/7 1,399 1,504 1,424 1,674

567 Capital charge 4 567 567 567 567 20,163 Total expenses 20,426 20,829 22,277 21,715

919 Surplus/(Deficit) 1,649 - - -

Other comprehensive revenue and expense - Other comprehensive revenue and expense - - - - - Total comprehensive revenue and expense - - - -

919 Total comprehensive revenue and expense 1,649 - - -

Explanations of major variances against budget are provided in Note 14. The accompanying notes form part of these financial statements. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 29

Statement of financial position As at 30 June 2020

Unaudited 2019 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 Notes $000 $000 $000 $000

Assets Current assets 3,671 Cash and cash equivalents 3,394 2,501 3,110 2,238

2,618 Debtors and other receivables 5 4,891 2,184 2,618 2,618

193 Prepayments 91 206 193 193 6,482 Total current assets 8,376 4,891 5,921 5,049

Non-current assets 932 Property, plant & equipment 6 820 866 821 713

4,406 Intangible assets 7 3,927 5,084 4,193 5,177

5,338 Total non-current assets 4,747 5,950 5,014 5,890

11,820 Total assets 13,123 10,841 10,935 10,939

Liabilities Current liabilities 797 Creditors and other payables 8 1,076 907 797 797 919 Provision for repayment of surplus 9 1,649 - - - 505 Employee entitlements 10 691 340 509 513 - Provision for holiday pay remediation 10 63 - - - 2,221 Total current liabilities 3,479 1,247 1,306 1,310

Non-current liabilities 144 Employee entitlements 10 189 139 174 174 144 Total non-current liabilities 189 139 174 174

2,365 Total liabilities 3,668 1,386 1,480 1,484

9,455 Net assets 9,455 9,455 9,455 9,455

Taxpayers' funds 9,455 Taxpayers’ funds 9,455 9,455 9,455 9,455 9,455 Total taxpayers' funds 9,455 9,455 9,455 9,455

Explanations of major variances against budget are provided in Note 14. The accompanying notes form part of these financial statements. 30 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Statement of changes in taxpayers’ funds For the year ended 30 June 2020

Unaudited 2019 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 Notes $000 $000 $000 $000 9,455 Opening Balance 9,455 9,455 9,455 9,455 919 Total comprehensive revenue and expense 1,649 - - -

Owner Transactions (919) Return of operating surplus to the Crown 9 (1,649) - - -

9,455 Total taxpayers' funds 9,455 9,455 9,455 9,455

Explanations of major variances against budget are provided in Note 14. The accompanying notes form part of these financial statements.

This is the Crown’s net investment in the Office and is measured as the difference between total assets and total liabilities. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 31

Statement of cash flows For the year ended 30 June 2020

Unaudited 2019 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 Notes $000 $000 $000 $000 Cash flows from operating activities 20,359 Receipts from revenue Crown 19,442 20,770 21,719 21,656 225 Receipts from other Departments 291 59 488 59 41 Receipts from other revenue 69 - 70 - (8,029) Payments to employees (8,902) (8,453) (8,778) (9,045) (9,689) Payments to suppliers (8,941) (10,364) (11,474) (10,425) (567) Payments for capital charge (567) (567) (567) (567) (20) Goods and services tax (net) 58 - - -

2,320 Net Cash flow from operating activities 1,450 1,445 1,458 1,678

Cash flows from investing activities (935) Purchase of property, plant and equipment - - - - (718) Purchase of intangible assets (808) (2,040) (1,100) (2,550)

(1,653) Net Cash flows from investing activities (808) (2,040) (1,100) (2,550)

Cash flows from financing activities (205) Return of operating surplus (919) - (919) -

(205) Net Cash flows from financing activities (919) - (919) -

462 Net increase/(decrease) in cash held (277) (595) (561) (872) 3,209 Cash at the beginning of the year 3,671 3,096 3,671 3,110 3,671 Cash at end of the year 13 3,394 2,501 3,110 2,238

The GST (net) component of operating activities reflects net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis to be consistent with the presentation basis of the other primary financial statements.

Explanations of major variances against budget are provided in Note 14. The accompanying notes form part of these financial statements. 32 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Statement of commitments As at 30 June 2020

As at 30 June 2020, there were no non-cancellable operating lease contracts (2019: Nil). There were no capital commitments (2019: Nil).

Statement of contingent liabilities and contingent assets As at 30 June 2020

Contingent liabilities As at 30 June 2020, there were no contingent liabilities for this year (2019: Nil).

As at 30 June 2020, there were no guarantees or indemnities given under sections 65ZD and 65ZE of the Public Finance Act 1989 in respect of the activities of the Office of the Clerk of the House of Representatives (2019: Nil).

Contingent assets As at 30 June 2020, the Office had no contingent assets (2019: Nil). Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 33

Notes to the Financial Statements For the year ended 30 June 2020

Note 1: Statement of accounting policies

Reporting entity between output GST and input GST, is included in creditors The Office has designated itself as a Public Benefit and payables or debtors and receivables (as appropriate). Entity (PBE) for financial reporting purposes. The Office’s primary objective is the provision of specialist advice The net GST paid to, or received from, the IRD, including the on parliamentary procedure, parliamentary law and GST relating to investing and financing activities, is classified administrative services to the Speaker and members of as a net operating cash flow in the statement of cash flows. the House of Representatives. Commitments and contingencies are disclosed exclusive The financial statements of the Office are for the year ended of GST. 30 June 2020 and were approved for issue by the Clerk of the House of Representatives on 10 November 2020. Income tax The Office is a public authority and consequently is exempt Basis of preparation from the payment of income tax in terms of the Income Tax The financial statements have been prepared on a going Act 2007. Accordingly, no provision for income tax has been concern basis and the accounting policies have been provided for. applied consistently throughout the period. Revenue Statement of compliance Revenue from the Crown is based on the Office’s funding The financial statements of the Office have been prepared entitlement for the reporting period. The funding pursuant to the Public Finance Act 1989 (PFA) which entitlement is established by Parliament when it passes includes the requirement to comply with the New Zealand the Appropriation Acts for the financial year. The amount Generally Accepted Accounting Practice (NZ GAAP) and of revenue recognised takes into account any amendments Treasury instructions. to appropriations approved in the Appropriation (Supplementary Estimates) Act for the year and certain The financial statements have been prepared in accordance other unconditional funding adjustments formally approved with and comply with Tier 2 PBE accounting standards. The prior to balance date. Office meets the criteria to report in accordance with PBE standards reduced disclosure regime as total expenditure There are no conditions attached to the funding from the is less than $30 million per annum. Crown. However, the Office can incur expenses only within the scope and limits of its appropriations. Presentation currency and rounding The financial statements are presented in New Zealand The fair value of Revenue Crown has been determined to be dollars and all values are rounded to the nearest thousand equivalent to the funding entitlement. ($000). Restructuring Significant accounting policies A provision for restructuring is recognised when an Significant accounting policies are included in the notes to approved detailed formal plan for the restructuring has which they relate. either been announced publicly to those affected or where implementation has already commenced. Goods and services tax The financial statements are exclusive of Goods and Commitments Services Tax (GST) except for creditors and payables and Commitments are future expenses and liabilities to be debtors and receivables, which are GST inclusive. Where incurred on contracts that have been entered into at GST is not recoverable as input tax, then it is recognised as balance date. Information on non-cancellable capital part of the related asset or expense. and lease commitments are reported in the statement of commitments. The amount of GST owing to or from the Inland Revenue Department (IRD) at balance date, being the difference 34 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Cancellable capital commitments that have penalty or exit The forecast financial statements have been prepared as costs explicit in the agreement on exercising that option required by the Public Finance Act 1989 to communicate to cancel are reported in the statement of commitments forecast financial information for accountability purposes. at the lower of the remaining contractual commitment and the value of those penalty or exit clauses (that is, the The budget and forecast figures are unaudited and have minimum future payments). been prepared using the accounting policies adopted in preparing these financial statements. Statement of cost accounting policies The Office has derived the costs of outputs using the cost The 30 June 2021 forecast figures have been prepared in allocation system outlined below. Direct costs are charged accordance with PBE Financial Reporting Standard (FRS) 42 directly to significant activities. Indirect costs are charged Prospective Financial Statements and comply with PBE FRS to significant activities based on cost drivers and related 42. activities/usage information. The forecast financial statements were approved for issue Criteria for direct and indirect costs: by the Clerk of the House on 24 March 2020. The Clerk is “Direct costs” are those costs directly attributed to an output. responsible for the forecast financial statements, including Direct costs are charged directly to outputs. Depreciation the appropriateness of the assumptions underlying them and capital charge are charged on the basis of asset and all other required disclosures. utilisation. Personnel costs are charged on an assessment of the time spent on functions involved in each output. While the Office regularly updates its forecasts, updated forecast financial statements for the year ending 30 June “Indirect costs” are those costs that cannot be identified 2021 will not be published. in an economically feasible manner, with a specific output. Indirect costs are expenses incurred in the Corporate Significant assumptions used in preparing the forecast Services Group and are assigned to outputs on the basis financials of a proportion of direct staff costs used for each output. The forecast financial figures contained in these financial statements reflect the Office’s purpose and activities and There have been no changes in cost allocation policies since are based on a number of assumptions on what may occur the date of the last audited financial statements. during the 2020/21 year. The forecast figures have been compiled on the basis of existing government policies and Critical accounting estimates and assumptions ministerial expectations at the time the BEFU Estimates In preparing these financial statements, the Office has were finalised. made estimates and assumptions concerning the future. These estimates and assumptions may differ from the The main assumptions are as follows: subsequent actual results. Estimates and judgements • The Office’s activities will remain substantially the same are continually evaluated and are based on historical as for the previous year. experiences and other factors, including expectations or • Personnel costs are based on approximately 100 staff future events that are believed to be reasonable under the positions. circumstances. The significant estimates and assumptions • Operating costs are based on historical experience. that have the greatest risk of causing a material adjustment The general historical pattern is expected to continue. to the carrying amounts of assets and liabilities within the next financial year are discussed below: • Estimated year-end information for 2020 is used as the opening position for the 2021 forecasts. Budget and forecast figures These assumptions were adopted as at 24 March 2020. The 2020 Mains Estimates figures are for the year ended 30 June 2020 and were published in the 2018/2019 annual Factors that could lead to material differences between the report as the 2020 forecast. They were consistent with forecast financial statements and the 2021 actual financial the Office’s best estimate financial forecast information statements include technical adjustments. The actual submitted to Treasury for the 2019 Budget Economic and financial results achieved for 30 June 2021 are likely to vary Fiscal Update (BEFU). from the forecast information presented and the variations may be material. The 2021 forecast figures are for the year ending 30 June 2021. These are consistent with the best estimate financial The Statement of Responsibility for the BEFU forecast was forecast information submitted to Treasury for the 2020 signed 24 March 2020 and was based on the PBE standards. BEFU exercise. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 35

Note 2: Personnel costs

Unaudited 2019 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 $000 $000 $000 $000 7,587 Salaries and wages 8,452 8,036 8,439 8,676

307 Employer contributions to defined contribution plans * 326 321 319 319

Increase/(decrease) in provision for employee 52 231 44 4 4 entitlements

153 Other 197 12 61 61

8,099 Total personnel costs 9,206 8,413 8,823 9,060

* Employer contributions to defined contribution plans include contributions to the State Sector Retirement Savings Scheme, KiwiSaver and the Government Superannuation Fund.

Superannuation schemes Obligations for contributions to the State Sector Retirement Savings Scheme, KiwiSaver and Government Superannuation Scheme are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit as incurred.

Note 3: Operating expenses

Unaudited 2019 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 $000 $000 $000 $000

45 Audit fee for audit of the financial statements 46 45 48 48

9 Assurance services provided by Audit New Zealand 9 9 9 9

3,648 Broadcasting costs 3,659 3,615 3,643 3,643

77 Printing costs 134 104 132 132

1,179 Travel costs 721 1,261 1,152 1,152

2,452 Information services 2,514 2,392 2,370 2,370

2,184 Other operating costs 2,171 2,919 4,109 3,060

9,594 Total operating expenses 9,254 10,345 11,463 10,414 36 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Note 4: Capital charge

The Office pays a capital charge to the Crown on its taxpayers’ funds as at 30 June and 31 December each year. The capital charge for the year ended 30 June 2020 was $567,000 (2019: $567,000) at a rate of 6% (2019: 6%).

Capital charge is an expense based on the Crown’s investment in the Office of the Clerk. The expense is recognised in the period to which the charge relates. The Office pays a capital charge to the Crown on taxpayers’ funds as at 30 June and 31 December each year.

Note 5: Debtors and other receivables

2019 2020 Actual Actual $000 $000

2,614 Debtor Crown 4,891

4 Other debtors - 2,618 Total debtors and other receivables 4,891

Debtor Crown reflects undrawn Revenue Crown funding and is categorised as a non-exchange transaction; all other categories originate from exchange transactions.

Short-term debtors or receivables are recorded at their face value, less any provision for impairment. A receivable is considered impaired when there is evidence that the Office will not be able to collect the amount due. The amount of the impairment is the difference between the carrying amount of the receivable and the present value of the amounts expected to be collected. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 37

Note 6: Property, plant and equipment

Movements for each class of property, plant and equipment are as follows:

Office Furniture Equipment Computers Telecom WIP Total

Cost or valuation

Balance at 1 July 2018 214 71 - - - 285

Balance at 1 July 2019 214 974 4 12 16 1,220

Transfer from work in progress - 16 - - (16) - Balance at 30 June 2020 214 990 4 12 - 1,220

Accumulated depreciation and impairment losses

Balance at 1 July 2018 (207) (38) - - - (245)

Balance at 1 July 2019 (214) (72) - (2) - (288)

Depreciation expense - (109) (1) (2) - (112) Balance at 30 June 2020 (214) (181) (1) (4) - (400)

Carrying amounts

At 30 June 2018 7 33 - - - 40

At 30 June 2019 - 902 4 10 16 932 At 30 June 2020 - 809 3 8 - 820

Property, plant and equipment Property, plant and equipment (PPE) consists The cost of an item of PPE is recognised as an asset only of furniture, office equipment, computers and when it is probable that future economic benefits or service telecommunication devices. The initial cost of PPE potential associated with the item will flow to the Office and is the value of the consideration given to acquire or create the cost of the item can be measured reliably. the asset and any directly attributable costs of bringing the asset to working condition for its intended use. PPE Work in progress is recognised at cost less impairment and is measured at cost less accumulated depreciation and is not depreciated. The total cost of this work is transferred impairment losses. to the relevant asset category on its completion.

Individual assets are capitalised, if their cost is greater than In most instances, an item of PPE is initially recognised at its $5,000 (exclusive of GST). cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of Additions acquisition.

Disposals 38 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Gains and losses on disposals are determined by comparing The recoverable amount is the higher of an asset’s fair value the proceeds with the carrying amount of the asset and are less costs to sell and value in use. included in the surplus or deficit. Value in use is the present value of the asset’s remaining Subsequent costs service potential. Cost incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or Value in use is determined using an approach based service potential associated with the item will flow to the on either a depreciated replacement cost approach, Office and the cost of the item can be measured reliably. restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use The costs of day-to-day servicing of PPE are recognised in the depends on the nature of the impairment and availability of surplus or deficit as they are incurred. information.

Depreciation If an asset’s carrying amount exceeds its recoverable service Depreciation of PPE begins when the asset is available for amount, the asset is regarded as impaired and the carrying use. It is provided on a straight-line basis so as to allocate amount is written-down to the recoverable amount. The the cost of assets, less any estimated residual value, over total impairment loss is recognised in the surplus or deficit. their useful lives. The charges for each financial year are recognised in the surplus or deficit for that year. The reversal of an impairment loss is recognised in the surplus or deficit in the year it occurs. Impairment The Office does not hold any cash-generating assets. The estimated economic useful lives and associated Assets are considered cash-generating where their primary depreciation and amortisation rates of major objective is to generate a commercial return. classes of assets are:

Non-cash-generating assets Furniture and fittings 5 – 10 years PPE and intangible assets that have a finite useful life are Office equipment 5 – 10 years reviewed for impairment whenever events or changes in Computers 5 years circumstances indicate that the carrying amount may not Telecommunication 7 years be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its The residual value and useful life of PPE is reviewed, and recoverable amount. adjusted if applicable, at least annually before each year end. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 39

Note 7: Intangible assets

Movements for each class of intangibles are as follows:

Internally Work in Progress Total generated Intangibles Cost or valuation Balance at 1 July 2018 13,139 581 13,720 Balance at 1 July 2019 14,334 104 14,438 Additions - 808 808 Transfers from work in progress 421 (421) - Balance at 30 June 2020 14,755 491 15,246

Accumulated amortisation Balance at 1 July 2018 (8,172) - (8,172) Balance at 1 July 2019 (10,032) - (10,032) Amortisation expense (1,287) - (1,287) Balance at 30 June 2020 (11,319) - (11,319)

Carrying amounts At 30 June 2018 4,967 581 5,548 At 30 June 2019 4,302 104 4,406 At 30 June 2020 3,436 491 3,927

There are no restrictions on title and no intangible assets pledged as security for liabilities.

Intangible assets Useful life of software Software acquisition and development: computer The useful life of software is determined at the software licences are capitalised based on the costs time the software is acquired and brought into use, incurred to acquire and bring to use the specific software. and it is reviewed at least annually before each year end for appropriateness. For computer software licences, the Costs that are directly associated with the development of useful life represents management’s view of the expected software for internal use by the Office are recognised as period over which the Office will receive benefits from the an intangible asset. Direct costs can include the software software, but not exceeding the licence term. For internally development, employee costs, and an appropriate portion generated software developed by the Office, the life is of relevant overheads. Staff training costs are recognised as based on historical experience with similar systems as well an expense when incurred. as anticipation of future events, which may impact their useful life, such as changes in technology. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs of software The estimated useful lives and associated amortisation updates or upgrades are only capitalised when they rates of intangible assets are: increase the usefulness or value of the software. Computer software 3 – 10 years Amortisation The carrying value of an intangible asset with a finite life is The residual value and useful life of intangible assets is amortised on a straight line basis over its useful life. reviewed, and adjusted if applicable, at least annually before each year end. 40 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Note 8: Creditors and other payables

2019 2020 Actual Actual $000 $000

54 Trade Creditors 157

430 Accrued expenses 547

- Accrued FBT expense 1

313 GST payable 371 797 Total creditors and other payables 1,076

Creditors and other payables Short-term payables are recorded at their face value. All creditors originate from exchange transactions with the exception of taxes collected and held pending payment to the Inland Revenue Department on due date.

Note 9: Provision for repayment of net surplus

2019 2020 Actual Actual $000 $000

919 Surplus 1,649 919 Total provision for repayment of surplus 1,649

The return of net surplus to the Crown was paid by 31 October 2020. With the exception of the provision for payment of the net surplus to the Crown, the Office does not hold any non- employee related provisions. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 41

Note 10: Employee entitlements and provisions

2019 2020 Actual Actual $000 $000

Current liabilities

44 Long service leave 53

2 Retirement leave 8

456 Annual leave 611

3 Sick leave 19 505 Total current portion 691

- Provision for holiday pay remediation 63

- Provision for Remediation 63

Non-current liabilities

58 Long service leave 72

86 Retirement leave 117 144 Total non-current portion 189

649 Total employee entitlements 943

Employee entitlements

Short-term employee entitlements Long-term employee entitlements Employee benefits expected to be settled within 12 months Employee benefits that are due to be settled beyond 12 of balance date are measured at nominal values based on months after the end of the reporting period in which the accrued entitlements at current rates of pay. These include employee renders the related service, such as long service salaries and wages accrued up to balance date, annual leave leave and retiring leave, are calculated in accordance with earned but not yet taken at balance date, retiring and long Treasury circular 2009/06. The calculations are based on: service leave entitlements expected to be settled within 12 • likely future entitlements accruing to staff, based on months, and sick leave. years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and A liability for sick leave is recognised to the extent that contractual entitlements information; and absences in the coming year are expected to be greater • the present value of the estimated future cash flows. than the sick leave entitlements earned in the coming year. The amount is calculated based on the history of sick leave Presentation of employee entitlements taken by all employees for the last three years to derive the Sick leave, annual leave, vested long service leave, and non- average amount of accrued sick leave taken over and above vested long service leave and retirement gratuities expected the entitlement for the year. to be settled within 12 months of balance date are classified as a current liability. All other employee entitlements are The Office conducted a review of payroll to assess classified as non-current liability. compliance with the requirements under the Holidays Act 2003. The provision is for terminated staff that the Office The Office has employees who are members of the has identified as outstanding. Government Superannuation Fund. This is a fully funded government scheme and, as a result, no liability is recognised. 42 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

The measurement of the long service leave and retirement The major long-term economic assumptions adopted in the gratuities obligations depend on a number of factors valuation process for long service and retirement leave were: that are determined on an actuarial basis using a set of assumptions. Treasury guidance was used to estimate the Salary increase rate: 2.72% (2019: 2.92%) value of long service leave, retirement leave and sick leave Discount rate: 1.63% (2019: 2.23%) as at 30 June 2020. For sick leave, the methodology was calculated according to the Treasury guidance and assumes that sick leave is a short- term compensated absence, as defined in PBE IPSAS 25.

Note 11: Related party transactions

Related party disclosures have not been made for are not disclosed as related party transactions when they transactions with related parties that are: are consistent with the normal operating arrangements • within a normal supplier or client/recipient between entities and undertaken on the normal terms and relationship; and conditions for such transactions. • on terms and conditions no more or less favourable The Office has received support services from the than those that it is reasonable to expect the Office Parliamentary Service, as part of a Service Level Agreement, would have adopted in dealing with the party at arm’s for the year ended 30 June 2020, as was the case in previous length in the same circumstances. years. These support services do not include precinct costs provided by the Parliamentary Service, which have been Further, transactions with other government agencies (for funded by the Crown. example, Government departments and Crown entities)

Key management personnel compensation

2019 2020 Actual Actual $000 $000

Leadership Team, including Clerk of the House

1,065 Remuneration 912

4 Full time equivalent staff 3

Remuneration includes salaries, movement in leave provisions, superannuation contributions and other employee benefits. Key management personnel include the Clerk of the House of Representatives, the Deputy Clerk of the House of Representatives and the Clerk Assistant. The Parliamentary Service Deputy Chief Executive for Customer Service and Parliamentary Engagement also attends senior leadership team meetings.

Note 12: Post-balance date events

The Office does not have any post-balance date events for 2020 (2019: Nil). Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 43

Note 13: Financial instruments

The carrying amounts of financial assets and liabilities in each financial instrument category are as follows:

2019 2020 Actual Actual $000 $000

Financial assets measured at amortised cost Loans and receivables 3,671 Cash and cash equivalents 3,394 2,618 Receivables 4,891 6,289 Total loans and receivables 8,285

Financial liabilities measured at amortised cost 54 Trade creditors 157 430 Accrued expenses 547 484 Creditors and other payables 704

Cash and cash equivalents include cash on hand and deposits held on call with banks. The Office is only permitted to expend its cash and cash equivalents within the scope and limits of its appropriations.

Note 14: Major budget variances

Statement of comprehensive revenue and expense is expected that this may continue in the foreseeable future Personnel costs are higher than the Main Estimates mainly until such point where international borders are opened. due to Annual leave not being taken, and an increase in staff requesting annual leave to be paid out as a result of Depreciation and amortisation are lower than the BEFU COVID-19. It is also the result of increased temporary staff Estimates as a consequence of the revision of the office’s costs and overtime due to COVID-19, increased house Capital Expenditure plan during 2020/21. sittings and legislation being passed. Statement of financial position Operating expenses are lower due to the COVID-19 Cash and cash equivalents, debtors and other receivables pandemic which has placed many people under immense (resulting from Crown funding not drawn-down) are higher pressure and threatened their health, their livelihoods and than the Main Estimates. This is a consequence of capital their future. The pandemic has not had a significant impact expenditure underspent and improved cash management. on Secretariat operations which have generally continued as normal. However, Inter Parliamentary Relations have Employee entitlement liability provisions have increased noticed a significant impact with events being cancelled. It significantly when compared to the Main Estimates due to employees not taking leave during the COVID-19 pandemic. Note 15 Covid-19

In March 2020, the World Health Organisation designated has minimal exposure however future economic COVID-19 to be a pandemic, threatening the health and impacts of business partners will be considered prior well-being of large numbers of people across multiple to entering into agreements. countries. The global outbreak has caused escalating levels • Increased Liquidity risk. The Office is secure in obtaining of societal uncertainty. In response, New Zealand entered funding from the Government though future economic a Government-directed ‘Alert Level 4’ lockdown on 25 impacts may reduce the capability of the Office. March 2020. The Government’s Alert Level system dictated • Increased Valuation risk. The assets of the Office have the level of business activity and societal interaction that not been impacted. can take place. • Operations of Inter Parliamentary Relations have The pandemic has had the following impacts: noticed a significant impact with events being cancelled. Future events are being held via Zoom • Increased credit risk from trade receivables. The Office conference calls. 44 AnnualOffice Report of the Clerk2016 of- 2017the House of Representatives Annual Report 2019/2020

Appropriation statements Taukī Tohatohanga Pūtea

The following statements report information about the expenses and capital expenditure incurred against each appropriation administered by the Office for the year ended 30 June 2020.

Statement of budgeted and actual expenses and capital expenditure incurred against appropriations For the year ended 30 June 2020

Unaudited 2019 2020 2020 2020 Actual Actual Main Supp Estimates Estimates $000 Vote Office of the Clerk $000 $000 $000 Departmental output expenses * 18,604 Secretariat Services for the House of Representatives 19,477 20,423 20,812 18,604 Total departmental output expenses 19,477 20,423 20,812

Departmental capital expenditure * Office of the Clerk of the House of Representatives – Permanent 1,653 808 2,040 1,100 Legislative Authority 1,653 Total departmental capital expenses 808 2,040 1,100

20,257 Total annual and permanent appropriations 20,285 22,463 21,912

* Performance reporting on these outputs is contained in this Annual Report.

Multi-year Appropriations The Office has a multi-year appropriation for Inter- individual visit programmes, assisting to build the capacity parliamentary Relations, for services to improve of the Pacific Island parliaments, supporting (including relations between the New Zealand Parliament and through travel to meetings overseas) the New Zealand other parliaments. It includes providing advice on inter- Parliament’s contribution on global issues at international parliamentary relations to the Speaker and members, parliamentary organisations and hosting international establishing and implementing an annual programme of parliamentary conferences. This appropriation commenced incoming and outgoing visits, developing and implementing on 1 July 2017 and expired on 30 June 2020. Te Pūrongo ā-Tau a Te Tari o te Manahautū o te Whare Māngai 2019/20 45

Unaudited 2019 2020 2020 2020 Actual Actual Main Supp Estimates Estimates $000 Vote Office of the Clerk $000 $000 $000

Appropriation for output expenses

3,555 Original appropriation 3,555 3,555 3,555

103 Cumulative adjustments 563 103 563 3,658 Total adjusted appropriation 4,118 3,658 4,118

- -

1,094 Opening cumulative actual expenditure 2,653 2,873 2,653

1,559 Expenses for year* 949 785 1,465

2,653 Closing cumulative actual expenditure 3,602 3,658 4,118

1,005 Accumulated appropriation underspent as at 30 June 2020 516 - -

* Performance reporting on these outputs is contained in this Annual Report.

Statement of departmental capital injections For the year ended 30 June 2020

2019 2020 2020 Actual Actual Approved appropriation $000 $000 $000

- Capital injections - - - Total Capital injections - -

Statement of departmental capital injections without, or in excess of, authority For the year ended 30 June 2020 The Office has not received any capital injections during the year without, or in excess of, authority. (2019: nil).

Statement of expenses and capital expenditure incurred without, or in excess of, appropriation or other authority For the year ended 30 June 2020 There were no expenses or capital expenditure incurred in excess of appropriation, without appropriation or outside the scope or period of appropriation (2019: nil). 46 Parliamentary Service Annual Report 2019/2020 Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 47

Parliamentary Service Annual Report 2019/20 Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 48 Parliamentary Service Annual Report 2019/2020

About us Mō mātou

Parliamentary Service (the Service) is a team of dedicated people working together across the country, in communities and on the parliamentary precinct, to provide our elected representatives and other key customers with the services they need to perform their roles effectively. We guide, protect, inform and enable, knowing our work supports a thriving democracy. Alongside members of Parliament, we also deliver services to the public, and to other agencies on the parliamentary precinct: Office of the Clerk of the House of Representatives (the Office), Parliamentary Counsel Office, Department of the Prime Minister and Cabinet, and the Department of Internal Affairs’ Ministerial Services.

How the Service is organised Te hanga o te Ratonga

This year saw us embed the new organisational structure that was introduced late in the 2018/19 year. The purpose of the re-organisation was to ensure that we are focused on delivering excellent customer service, to remove unnecessary duplication of services with the Office, and to break down existing silos, allowing us to become more nimble and pragmatic in the way we provide support. One year on, we’ve seen improvements in all these areas, with details of our progress laid out later in this report. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 49

Our Highlights 2019/20 Ō Mātou Whakaharaharatanga

Successfully devised and managed Annual Speaker’s and whip/musterer Consulted with all parties and staff health and safety protocols for the survey showed significantly increased to make Speaker’s Directions more precinct during the COVID-19 lockdown satisfaction with our services (from accessible and fit-for-purpose, to the 3 to 4.5 and from 4 to 4.5 (out of 5) satisfaction of the Speaker and the respectively Parliamentary Service Commission

Refurbished large parts of Parliamentary Significant improvements in employee Successfully completed the in-housing of Library building into contemporary office engagement survey results the IST Service Desk space

50,525 visitors to Parliament 93% of visitors who take a tour rated it as 4 additional relationship managers to good or excellent provide increased support to staff

Parliamentary Library, Research and Our IST infrastructure enabled over 1000 Professional supervision available for Information group responded to around MPs and parliamentary staff to work electorate and community office staff 9,500 research requests from members remotely during the COVID-19 lockdown of Parliament, their staff and staff from parliamentary agencies 50 Parliamentary Service Annual Report 2019/2020 Our Workforce Tō Mātou Hunga Mahi

Our strategy canvas

This year the Service developed and introduced a new strategy canvas which lays out our objectives and priorities for the coming years. It also outlines the principles and values that will guide us in our work and we look forward to reporting our progress on it next year.

A copy of the Strategy Canvas is included as appendix A.

Our people 61% supporting MPs 764 employees FTE is 645. 39% corporate support

Full time 91%

494 staff 65% Full time Part time 51% 49%

270 staff Part time 35% 9%

Working on precinct Working off precinct Member Support Corporate staff Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 51

Gender

Parliamentary Corporate Member Public Women in senior leadership Service Staff Support Staff Service (top 3 tiers of management for corporate staff): 37% 53% 27% 39% 42%

Female Male

63% 47% 73% 61%

Age Gender pay gap

Parliamentary Service June 2020 The gender pay gap in the Parliamentary Service overall is 9.8%. Public Service 2019 Corprate staff:8% Political Office staff0% : 24% 24% Member support staff:-1% 22% 22%

17% 21% Unplanned 19% 18% 15% turnover (annualised) 12% 4% 0% 1% 1% 15-19 20-29 30-39 40-49 50-59 60-69 70-79

Ethnicity

Parliamentary Service June 2020 Public Service 2019

63% 67%

30%

15% 16% 11% 9% 9% 5% 7% 1% 2%

Māori Pacific European Asian MELAA Other

Our people identify with 49 different ethnicities. Note, ‘New Zealander’ comes under ‘other’. 52 Parliamentary Service Annual Report 2019/2020

Equality, Diversity and Inclusion juggling. To support our Relationship Managers with their pastoral care, a buddy system was established which saw The Service has joined forces with the Office to create a Wellington-based staff across the Service and the Office shared Diversity and Inclusion Committee. We are excited call employees working for members around the country, to be partnering with Diversity Works who will support us many of whom work in sole-charge roles and did not have with our work in this area, commencing with training for colleagues they could connect with regularly. Wellbeing our Diversity and Inclusion Committee and progressing focused webinars with an experienced counsellor were the development of a Diversity and Inclusion Strategy for also offered to all staff. both agencies to be introduced in the 53rd Parliament. Communication from the Executive Leadership Team (ELT) Employment Relations also increased under lockdown, recognising that people The past year saw the Service continue to build on our need to hear from their leaders during times of change cooperative working relationship with both the PSA and and uncertainty. For example, video messages were E tū through regular scheduled meetings where matters produced twice a week by members of the ELT and all of mutual interest were discussed. In addition to this, the Service meetings were held fortnightly, giving people the Service and PSA have been working together to develop a opportunity to have their questions answered by the ELT. new remuneration framework for our Corporate Support employees, which is progressing very positively. To gather formal feedback on our activities, we delivered two pulse surveys over the lockdown period: one on Negotiations for our CEA2 started in this financial year, wellbeing and remote working and the second on transition and a number of significant changes were proposed and readiness. It was important that we heard from our people considered. These included narrowing the definition of regularly during this time in order to understand how they what constitutes an ‘event’, removing what was known as were feeling, the environment they were working in, and the ‘breakdown clause’ and putting in place a system for what we could do to best support them. The feedback was managing TOIL. These changes were recommendations of incredibly positive and it was heartening to see that our the Francis Review and incredibly important to the Service people felt well supported and cared for by the Service as they would significantly improve the employment and their leaders. conditions for a large number of our workforce. Flexible Work Policy We were pleased to see the agreement, which included The lockdown period demonstrated just how effectively the changes mentioned above, ratified by members of many staff could perform their roles while working both unions early in the new financial year, prior to the remotely, and the employee pulse survey told us that 53rd Parliament. there was overwhelming interest among our people in ongoing opportunities for flexible work. To this end, in Leadership Development June, we released our Flexible Working Policy to support Building leadership capability and investing in the employees who wish to consider alternative working development of our leaders is critical if the Service is arrangements, including working from home and changes to deliver on its strategic objectives. We have started to in hours of work. It was pleasing to see the popularity of the develop a workforce strategy which will include a stream policy, with many staff quickly taking up the opportunities of work around leadership development and we intend available to them. to leverage off services provided by the Leadership Development Centre arm of Te Kawa Mataaho Public Creating a healthy parliamentary workplace culture Service Commission. The findings of the external independent review into Supporting our people through COVID-19 bullying and harassment in the parliamentary workplace (also known as the Francis Review) were released in Working remotely during the COVID-19 lockdown period May 2019. At that time both the Office and the Service was a unique and sometimes challenging experience for made a commitment to change. Over the past year, we our employees, depending on their specific situation and have worked alongside Ministerial Services/Department responsibilities. Supporting our people’s wellbeing and of Internal Affairs and made significant progress on the maintaining their connection to their colleagues, teams review’s 85 recommendations. and to the wider Service during this time was a key focus. To this end, managers stepped up their regular interaction As of 30 June 2020, 29 of the recommendations have with their teams, being sure to check in with each employee been implemented with another 40 underway. At the time about how they were feeling and how they were managing their workload among the other responsibilities they were Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 53

of writing this report, the number of recommendations supervision model be developed for electorate and completed has increased to 38. community office staff, and this was launched in November 2019. Professional supervision is a formal, ongoing The development and implementation of a code of conduct process that is centred on relationship enhancement, for the parliamentary workplace was one of the largest and professional development and wellbeing, providing staff most ambitious recommendations made by the reviewer. with a professionally safe and nonthreatening environment We have focused much attention on this over the past within which they can discuss issues that relate to their year as we see it as a cornerstone to creating a healthy work. Vitae, one of New Zealand’s most experienced parliamentary workplace for staff and members alike. national providers of workplace wellbeing services, was Work to develop the code has been driven by the Office, engaged to provide this service. Feedback thus far has Service and DIA, feeding back into the cross-Parliament been very positive. Code of Conduct Steering Group, led by the Hon Anne Tolley MP. All staff and members were given multiple Our organisational values opportunities to input into the code’s creation, and their This year the Service embarked on a collaborative process feedback was hugely influential in shaping the draft code. to create a set of shared organisational values. We We also conducted extensive research on codes in place engaged with our people across the country to determine for other public and private sector organisations as well as five values that we want to live by and, collectively, selected overseas jurisdictions. Manaakitanga, Integrity, Whanaungatanga, Accountability and Empowerment. A fit-for-purpose structure These values demonstrate what is important to our people The 2018/2019 year saw high level changes in our and we aim for them to underpin everything we do. We organisational structure and, as we indicated in last year’s will continue to embed our values over the coming years, report, this year we have started to look at how we are ensuring they guide our behaviours and decision making organised at the team level to ensure we are operating at an individual, team and organisational level. with a model that allows us to provide excellent service levels while remaining nimble and adaptable. Along with An engaged workforce embedding the new, shared Parliamentary Engagement The Service completed an employee survey in May 2019 team, our focus this year turned to the member and staff which indicated that while staff enjoyed working for the services team and the security team. Further information Service, there were a number of areas we needed to focus about outcomes of these particular reviews can be found on to improve the workplace and employee experience for in this report. our people. Over the past year, we turned our attention to Greater support for Electorate and Community Office addressing the key areas highlighted by our people. The results of our full employee engagement survey in July staff 2020—a year later—showed that our efforts had made A recent review of the member and staff services team a significant difference, with a big improvement inour has expanded the team’s capacity, and established more overall engagement score and many measures increasing regionally-based relationship managers, who will be better by more than 10 points. placed to provide pastoral care to staff. The relationship managers were also required to undertake training in employee relations and coaching. We are confident that this new model of management will be more responsive to staff and member needs, and enable early resolution of low level workplace conflicts.

Professional supervision The Francis Review recommended that a professional 54 Parliamentary Service Annual Report 2019/2020

Our Strategic Outcomes Ō Mātou Putanga Rautaki

Members and other parliamentary agencies receive high- election. In September, we started a pilot where library quality services researchers assisted six select committees by attending Further shared services meetings and providing independent subject matter Delivering higher quality services while also achieving expertise. greater efficiencies remained an objective for both the Service and the Office over the past year. To this end, Staff from the Parliamentary Library, Research and we have continued aligning a number of our corporate Information group have shared knowledge and provided services functions. Not only does this convergence remove resources to the United Nations Development Programme duplication and streamline our services, it also strengthens (UNDP) floating budget offices with Pacific parliaments and enhances the support we provide through maximising in Vanuatu and Papua New Guinea, and during lockdown the collective skills and knowledge of our people. assisted Tonga in a virtual office. Staff also participated in a four-day regional workshop on budget documentation During the 2019/20 year, both agencies’ information hosted by the International Monetary Fund - Pacific Financial management teams were collocated and what had Technical Assistance Center and UNDP. previously been two electronic content management systems were merged into one system and supported for During 2019/20, the Service’s new Retention and Disposal both agencies by the Service’s Information Management Authority (covering the Service’s statutory obligations under Team. Further work is underway to deliver information the Public Records Act 2005) was approved by the Chief management as a service to the Office of the Clerk, Archivist. The Retention and Disposal Authority will help beginning in 2020/21, as part of the parliamentary agencies’ inform the ongoing management of Service information for commitment to resource sharing, creating business the coming decade. efficiencies and removing duplication of services. Enhanced IST customer support The Service now also provides a full range of HR services The past year saw us complete the in-housing of the IT and support to the Office, which ensures a consistent Service Desk, which, along with the in-house desktop support experience and level of service across both agencies. Job team, has allowed us to significantly improve the quality and and secondment opportunities are also open to employees responsiveness of service we provide to members and staff of both the Service and the Office, creating enhanced career of all agencies. The team have quickly built up specialised development and knowledge sharing opportunities. knowledge of the parliamentary environment and of the needs of our key customers which enables them to provide High-quality library, research and information services continue much more customised service. Alongside this, we have also This year the Parliamentary Library, Research and started the replacement and automation of a significant Information group responded to around 9,500 research number of support processes to speed up resolution times requests from members of Parliament, their staff and staff for customer issues. This work is feeding directly into the from parliamentary agencies, compiled 110 debate packs preparation for the upcoming election. providing background material on current Bills, produced 34 Bills Digests summarising the provisions of proposed Similarly, support for Parliament’s website transitioned in- laws, and wrote over 107 briefing papers to support inter- house this year after it was determined by the Office that parliamentary visits. more specialised support was required from a team that closely understands how Parliament works and can better Staff quickly developed an intranet page related to support integration with the other publishing systems the COVID-19, featuring national and international resources Office uses. COVID-19 delayed this process somewhat but and a timeline of events. the Office reports seeing a high standard of support and delivery. The Library continued projects to develop a database on Parliaments and members, and to update and publish 72 We also delivered a Pecuniary and Other Specified Interests Electorate Profiles with 2018 census data before the 2020 Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 55

application, which dramatically simplified the declaration • Centralised procurement and contract activities to process both for members and support staff. create consistency in approach and a one-stop shop for quality advice. Information security Keeping the information of Parliament and its members More accessible Speaker’s Directions safe has never been more critical or more challenging than In preparation for the 53rd Parliament, this year for the first it is in the current environment. To ensure we are doing our time, the Service worked alongside the Office to undertake utmost, we continued to invest in upgrading our information an extensive consultation on the Speaker’s Directions and security infrastructure, with improvements to our security associated guidance material. As part of this, we gathered monitoring and privileged user access management. feedback from many members and staff about how we Cybersecurity awareness training was also rolled out to all could make the Directions more accessible, fit-for-purpose members and staff. and family-friendly. This resulted in significant changes to the content and presentation of the Directions, to the Embedding our privacy strategy and providing OIA support satisfaction of the Speaker and the Parliamentary Service Our privacy programme continues to be embedded and Commission. This work will be released at the beginning of reinforced across the Service through the Privacy Advocate the 53rd Parliament. network. Privacy Awareness workshops are offered on a quarterly basis to both corporate staff and member support The 53rd Parliament staff to reinforce the protections in place around member Over the course of this year, the Service has been preparing information as outlined by the Parliamentary Information to support a smooth and seamless transition to the 53rd Protocol. Parliament. We have collaborated with the Office to create a comprehensive induction experience for members and The Service has also agreed a procedure with Ministerial and staff, focused on their needs and ensuring they can perform Secretariat Support (MASS) to best assist them in meeting their duties as quickly and effectively as possible following their statutory obligations under the Official Information Act the election. To address some of the issues experienced 1982 in a way that ensures that the appropriate protections with past election programmes, this year we’ve also aligned remain on member information held on the Parliamentary and worked closely with Ministerial Services to ensure that network. everyone has clear, shared expectations around service delivery and that any transitions for our staff between Completion of the Cost to Serve Model agencies are well-managed and coordinated. Delivering This year we completed a financial model that allows us to a successful transition takes significant planning, bringing identify the true cost in providing services to the agencies together teams from across the Service and we look forward we support. The model has resulted in increased visibility to seeing this come to fruition in the next year. and transparency for both the Parliamentary Service and the other agencies. It has enabled more informed A customer service space conversations and helped to foster more open and In June of this year, the Service unveiled its new customer collaborative relationships. service hub, Ātea. Named after the courtyard one would find in front of a wharenui, this centrally located area acts A more customer-centric finance service not only as a drop-in spot for IST assistance but also as Over the last year, the Finance team has been on a journey a space where teams from across the Service and Office to embed a customer centric approach. As part of that, we: can promote their services and make themselves easily • Established a finance trainer role to design and deliver accessible to members and their staff. This has been an finance specific training programmes to those with initial success and plans to develop a more comprehensive financial responsibility – the goal is to ensure that customer service hub are already underway. members’ staff and corporate staff have the knowledge and tools they need to succeed. • Increased the number of Finance Business Partners and started implementing a partnering model which sees them embedded within the business, enhancing collaboration and creating greater understanding of the business needs and the bigger picture across the organisation. This allows us to be more proactive and provide a higher quality of service. 56 Parliamentary Service Annual Report 2019/2020

Members and staff across agencies are able to work We have also embarked on a series of architectural flexibly and effectively wherever they are improvements aimed at significantly improving the speed of the website, including an initial upgrade to the website Technology to support remote working search capability. As New Zealand swiftly moved to COVID-19 Alert Level 4, nearly every user of the Parliament network was required to One integrated team work remotely, in a matter of days. This was an enormous Over the past year the structure of the new Parliamentary undertaking and the investment we had made to improve Engagement team, comprising employees from both the the reliability and quality of our remote working capability Service and the Office was embedded. This is the first proved incredibly valuable. During the lockdown period example of a completely integrated team, with those in we successfully had around 1000 users per day working leadership roles essentially employed by both agencies remotely, including our nation’s elected representatives, through secondment arrangements. who had a critical role to play at this time. Employees in the IST team worked tirelessly to ensure Parliament and its Delivery on the Parliamentary Engagement Strategy has members had the technology needed to operate effectively continued at pace with the expansion and streamlining of and staff were onsite throughout all alert levels to repair the shared functions. and replace equipment, managing the huge challenges presented by significant delays in the supply chain. We also Building our education offerings quickly rolled out Zoom video conferencing for all members The Education stream within the Parliamentary Engagement and staff, which was very well received and greatly improved team are responsible for primary, secondary and tertiary communication during the lockdown period. education programmes as well as offerings for public servants and the general population. Over the past year Electorate and Community Office security significant gains have been made, working as part ofthe A large programme of work was delivered over the past year newly integrated team. to ensure every electorate and community office across New Zealand has appropriate physical security measures While onsite education visits were suspended during (e.g. reception barriers, safe retreat rooms) in place to COVID-19 Alert Levels 2, 3 and 4 we took this opportunity manage the risks associated with the specific office. This to think more creatively about how we deliver our offerings. helps to ensure we keep members of Parliament and staff Our new webinar programme emerged as a result and we safe, while retaining an open and accessible environment delivered six public webinars, each focused on a different for constituents. aspect of Parliament and presented by expert panellists. After receiving excellent feedback from attendees, the Duress alarms webinar programme now continues as a regular feature on A rigorous procurement process was completed to identify the calendar. and select a fit for purpose duress alarm solution for members of Parliament and electorate and community The time away from hands on teaching during lockdown also office staff. The new solution addresses the key concerns saw the creation of three new resources about Parliament, with the existing offering and will be rolled out in the 53rd focused on primary, secondary and ESOL learners. The Parliament to support members and staff working from resources are linked closely to the curriculum to ensure their offices and out in their community. alignment with required learning outcomes and assist The public can learn about and engage with the teachers with planning. parliamentary process In our desire to better understand the preferences of Website enhancements teachers and to assist with future resource and programme Our IST team worked alongside the Parliamentary developments, we have also established a teacher reference Engagement team to deliver several significant features group, comprising a range of experienced teachers at and upgrades to the Parliamentary website, including different levels, and conducted a national survey of teachers, Parliament on Demand, which provides direct access to a which garnered over 3,300 responses. livestream of Parliament TV, and on demand access to all televised speeches made in the House of Representatives Despite the suspension of school visits for close to three dating back to December 2009. The site showcases the months, onsite education programmes were still delivered rich variety of informative and educational videos available to 10,875 students and the Speaker’s outreach programme about Parliament, including the Spotlight and Taonga of visited four regions, with members from all five current Parliament series, and videos about events at Parliament. parliamentary parties participating. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 57

Parliamentary Information Service the Rt Hon Jacinda Ardern, the Speaker of the House, the Rt The Parliamentary Information Service responds to Hon Trevor Mallard, individuals representing iwi from across requests from the public on all aspects of the New Zealand New Zealand and a number of members of Parliament. The parliament: its history, processes and publications. In the unveiling was streamed live via social media, so all New 2019/20 year, we responded to around 1,250 requests. Zealanders could witness this significant moment. The parliamentary precinct is accessible, safe, used and Sharing the Taonga of Parliament effectively maintained This year we have made significant progress in preparing the Parliamentary Collection for digitisation, with the aim of Maintaining Parliament’s buildings making it more accessible for all. This includes ongoing work This year we have completed or progressed a number to ensure we have copyright agreements for all items in the of projects to ensure that the precinct buildings are well Collection, which is currently a significant barrier to sharing maintained and that space is being used effectively. more of the Collection online. Our property strategy outlines our aim to make better use of There were 11 new items accessioned into the Collection Crown buildings in order to decrease the Service’s need to as well as 11 display changes. With the precinct closed to lease accommodation space. To this end, over the past year the public under Alert Levels 2, 3 and 4 we introduced our we continued redeveloping storage space no longer needed displays as online exhibitions and we have continued this to in the Parliamentary Library, into fit-for-purpose office increase access for members of the public who are unable space. Our initial plan was to use this area to accommodate to visit Parliament in person. Seven public exhibitions Parliamentary Service corporate staff however, after a full featuring artwork from New Zealand based artists were held seismic assessment of Bowen House indicated it needed in Parliament’s Bowen House Exhibition Space, including complete seismic strengthening, we were required to revisit one showcasing the art of members of Parliament and our designs and alter the plan so that the space can be used parliamentary staff. to house members and their staff, who would usually be located in Bowen House. This ensures all members and their Welcoming visitors to Parliament direct support staff continue to be located on precinct. To We continued to have a high volume of visitors to allow the strengthening work on Bowen House to take place, Parliament although tour numbers were impacted by the Parliamentary Service corporate staff and other agency staff closure of the precinct to visitors under Alert Levels 4, 3 and currently accommodated in Bowen House will be decanted 2. To encourage the return of visitors under Alert Level 1, to an alternative leased building for the duration of the we extended our offering to include evening tours. While works and the past year has seen us investigate a number this initiative is still relatively new, the numbers have been of options. Suitable offsite accommodation was identified strong with good feedback received. Throughout the year in April 2020, and a lease for the TSB building on Lambton we continued to offer regular art tours, as well as themed Quay was signed early the next financial year. tours such as the suffrage tour for International Women’s Day and New Zealand Parliament at War for Remembrance Several other major projects have been completed or have Day. A dedicated te reo Māori tour was developed while the made significant progress in the last year. These include Visitor Centre was closed and is expected to commence in the Executive Wing lift upgrades, the completion of the play the next few months. space on the lawn in front of the precinct, and the upgrade of the escalators in the linkway between the Executive Wing Work also commenced on enhancing the experience for and Bowen House. those visiting the Visitor Centre. Digital displays and touch screens have been purchased so that collections may be We have also developed a comprehensive investment accessed virtually by visitors and research and photography plan to preserve Parliament’s heritage buildings for future of the collection is underway to enable this. generations and joined the Green Buildings standards programme with a target of achieving a 4-star rating in the Remembering the New Zealand Wars next five years. On 12 September, a plaque to the New Zealand Wars was unveiled in the debating chamber. The plaque takes its place among other plaques and wreaths which commemorate those who served New Zealand in significant conflicts around the world. In this case, it acknowledges Māori and Pākehā who fought on both sides of the conflicts in the nineteenth century. The unveiling was attended by the Prime Minister, 58 Parliamentary Service Annual Report 2019/2020

Enhanced health and safety reporting for the precinct Reviewing our security services Parliamentary Service has been using Vault to record In July 2019, the Service commissioned an external and manage health, safety and security incidents and consultant to undertake a comprehensive review of near misses for some time and has this year rolled it out Parliamentary Security. The review investigated the current to both the Office and Ministerial Services. This will allow security needs of Parliament, reported on Parliament’s future them to manage and monitor their own health, safety and security needs, and recommended changes to Parliament’s security reports and will provide the Service with a more security arrangements to ensure that Parliament remains comprehensive view of any issues on precinct that require open and accessible while also being safe and secure. A action. programme of work is now underway to implement the recommendations of the review, which includes a significant Celebrating women in Parliament investment in people capability, technology enhancements, The women’s suffrage room underwent a significant refresh and policy, process and procedure improvements. and was re-opened in March 2020. The room celebrates women’s historic journey through Parliament, and the walls Fixated Threat Assessment Centre (FTAC) are adorned with portraits of former women MPs, including In 2017, the Ministry of Health and New Zealand Police, the first, Elizabeth McCombs; the first Māori woman MP, along with Parliamentary Service Security and the 3DHB Iriaka Rātana; and a portrait of New Zealand’s three women Mental Health, Addictions, and Intellectual Disability Service, Prime Ministers. They are joined by portraits of other established a small trial of the FTAC concept, based around women’s suffrage leaders, Kate Sheppard and Meri Te fixations with members of Parliament. FTACNZ has now Tai Mangakāhia. The project was a collaboration between been established on a permanent basis and serves two the Commonwealth Women Parliamentarians group and purposes: Parliamentary Service. · to allow agencies to understand a fixated person’s behaviour and the supports available to them Parliamentary precinct during COVID-19 · to ensure appropriate interventions are in place where The parliamentary precinct continued to operate during possible. all COVID-19 alert levels, supporting the essential workers who were required to be onsite (e.g. media, Ministry of FTACNZ works by sharing appropriate information to Civil Defence and Emergency Management). Security reduce the level of concern for fixated people to themselves services were provided around the clock and procedures and others. for the safe operation of the buildings were developed and implemented for each alert level. These included safety measures like increased cleaning and sanitisation, which still continue today. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 59

Measuring our Performance Te whakawā i tō mātou whanonga

Measuring our performance

We achieved the majority of agreed performance standards this year against our strategic objectives and our appropriations.

Impact of COVID-19 on performance standards The following performance standards were not achieved · Number of persons admitted to the precinct through due to the impact of COVID-19. These are marked by the security screening magnetometers who do not an asterisk in the section titled ‘Our appropriations’ and hold a parliament security access card explanations are provided. · Priority users on precinct other service incidents and · Parliamentary tours are open and accessible to the standard requests are resolved within 4 hours unless public on all but six days of the year the precinct is otherwise agreed closed · Priority users off precinct other service incidents and · Parliamentary school education visits are open and standard requests are resolved within 8 hours unless accessible in the school calendar year otherwise agreed · The public has access to the parliamentary precinct via · Incidents for priority users are responded to within 30 tours and education visits minutes

Our strategic objectives Note, this table only reports on measures not addressed in our reporting on our appropriations. Further information about our performance against the remainder of our strategic objectives can be found in the preceding pages ‘Our strategic outcomes’ and in the following tables under ‘our appropriations’.

Objective Measure 2019/20

Members and staff across Customer satisfaction survey on the In the annual survey, whips/musterers agencies are able to work flexibly provision of administrative and support rated satisfaction with administrative and and effectively wherever they are. services to the House of Representatives support services as a 4.5 out of 5. This is and members of Parliament an increase from 4 out of five in 2018/19 and 3.5 out of 5 in 2017/18.

Members and other Customer satisfaction survey on the In the annual survey, whips/musterers parliamentary agencies receive provision of administrative and support rated satisfaction with administrative and high quality services services to the House of Representatives support services as a 4.5 out of 5. This is and members of Parliament an increase from 4 out of five in 2018/19 and 3.5 out of 5 in 2017/18.

Customer satisfaction of members This could not be measured as there was following the transition between no transition between parliaments in the parliaments 2019/20 year.

The Parliamentary precinct Reviewing progress against the As of 30 June 2020, 29 of the 85 is accessible, safe, used, and recommendations of the Francis Review recommendations have been effectively maintained. implemented with another 40 underway. 60 Parliamentary Service Annual Report 2019/2020

Our appropriations Ā mātou tohatohanga pūtea

Each appropriation is detailed below together with an assessment of performance (both financial and non-financial).

Support services to the Speaker of the House of Representatives The provision of services to support the Speaker of the House of Representatives

Measure Performance standard 2018/19 2019/20

The Speaker is satisfied with the provision At least 4 on a 1-5 scale Not achieved Achieved of resources and services to his office. 3.00 4.50

Financial performance

(Figures are $000s and GST exclusive) Unaudited

2020 2020 2020 Actual Main Estimates Supp Estimates

Total Expenditure 148 243 168

Operations, Information and Advisory Services multi-category expenses and capital expenditure The provision of administrative and support services to the House of Representatives and to members of Parliament, and making Parliament publicly accessible.

Measure Performance standard 2018/19 2019/20

The Speaker is satisfied with the provision At least 4 on a 1-5 scale New measure 4.5 of administrative and support services to the House of Representatives and members of Parliament

Building and Operations Management This category is intended to achieve building maintenance and operational services.

Measure Performance standard 2018/19 2019/20

*Parliamentary tours are open and accessible to the 95% New measure Not achieved public on all but six days of the year the precinct is 77%1 closed

*Parliamentary school education visits are open and 95% New measure Not achieved accessible in the school calendar year 76%2

*The public has access to the parliamentary precinct 75,000-80,000 people Achieved Not achieved via tours and education visits 97,033 people 52,5051

Visitors undertaking a parliamentary tour rate the 90% Achieved Achieved parliamentary experience as good or excellent 90% 93%

1 This was not achieved due to the Visitor Centre closure during COVID-19 alert levels 2, 3 and 4. 2 This was not achieved due to the Education Centre closure during COVID-19 alert levels 2, 3 and 4. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 61

Measure Performance standard 2018/19 2019/20

The proceedings of the House of Representatives Proceedings are not Achieved Achieved are not interrupted due to incidents occurring in the interrupted public gallery

The condition of our heritage buildings is maintained Planned CAMP Achieved Achieved to reflect their national significance; and occupation deliverables are and use of the buildings is not negatively impacted completed by significant plant failure

*Number of persons 200,000 New measure Not achieved admitted to the precinct 187,2673 through the security The condition of our screening magnetometers heritage buildings who do not hold a parliament is maintained to security access card reflect their national significance and Gold standard or better Achieved Achieved Maintain ‘Be.Accessible’ Gold these buildings are – Platinum – Platinum standard or better accessible to the standard standard disabled community (see Note 3) Gold standard or better Achieved Achieved Maintain ‘Be.Accessible’ Gold – Platinum – Platinum standard or better standard standard

Targets in the Protective 80% Achieved Not achieved4 Security Requirements (PSR) 80% 71% Capability Maturity Model are The parliamentary met and aligned to the self- precinct and assessment to New Zealand members’ out-of- Security Intelligence Service Parliament offices dated 31 March 2018 are safe and secure Members’ existing out-of- 85% New measure Achieved (see Notes 4 and 5) Parliament offices meet the 98% 52nd Parliament Speaker’s Directions minimum security requirements

Members’ out-of-Parliament 100% New measure Not achieved offices opened since 2017 98%5 meet the 52nd Parliament Speaker’s Directions minimum security requirement

Security incidents on the 97.5% Achieved Achieved The parliamentary precinct have detailed 98% 100% precinct and accurate post-incident members’ out-of- reporting submitted within Parliament offices 12 hours of Security being are safe and secure notified of an incident (see Notes 4 and 5) Security incidents in 95% Achieved Achieved members’ out-of-Parliament 99% 100% offices have detailed accurate post-incident reporting submitted within 24 hours (working days) of Security being notified of an incident

3 This was not achieved due to the closure of the precinct to most non-cardholders during COVID-19 alert levels 2, 3 and 4. 4 A range of targets were not met. However, a comprehensive review of security was undertaken in July 2019, the recommendations of which are currently being implemented and will address the areas where targets were not met. 5 One office could not meet all of the minimum security requirements due to the size and layout of the office. Alternative measures were put in place to mitigate risk. 62 Parliamentary Service Annual Report 2019/2020

Financial performance Building and Operations Management

(Figures are $000s and GST exclusive) Unaudited

2020 2020 2020 Actual Main Estimates Supp Estimates

Total Expenditure 28,580 28,228 29,544

Parliamentary Information Communications and Technology services The category is intended to achieve the supply of information communications and technology services

Performance Measure 2018/19 2019/20 standard Achieved Network 99.5% New measure 100% Achieved Email Services 99.5% New measure 100% Achieved Blackberry Services 99.5% New measure Customers receive 100% network access Achieved SharePoint Platform 99.5% New measure to the following 100% Information Systems Achieved Publishing Services 99.5% New measure Technology (IST) 99.9% services, via desktop Achieved File Shares 99.5% New measure or mobile devices in 100% the precinct, during Telecommunications Network VPN Achieved 99.5% New measure business hours (see and Identity Services 99.7% Note 6) Achieved Core Parliamentary Data Services 99.5% New measure 100% Not achieved6 Public Website 99.5% New measure 99.3% Achieved Citrix 99% New measure 100%

6 The parliamentary website has some technical issues and performance issues which, when coupled with increased public use during peak periods resulted in a significant number of outages during the year. The Service has taken action to address the problems including in-sourcing the development and support of the website in February 2020. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 63

Performance Measure 2018/19 2019/20 standard *Incidents for priority users are Achieved Not achieved 90% responded to within thirty minutes 95% 67.5%7 Service outages, major security incidents or performance issues Achieved 90% New measure affecting multiple priority users are 100% Priority users resolved within 2 hours receive information, *Priority users on precinct other communication and service incidents and standard Not achieved 90% New measure technology services requests are resolved within 4 61%7 hours unless otherwise agreed *Priority users off precinct other service incidents and standard Not achieved 90% New measure requests are resolved within 8 67%7 hours unless otherwise agreed

Financial performance Parliamentary Information Communications and Technology services (Figures are $000s and GST exclusive)

2020 2020 2020 Actual Main Estimates Supp Estimates

Total Expenditure 19,759 18,776 19,646

Parliamentary Library Research and Information This category is intended to achieve the supply of library services.

Measure Performance standard 2018/19 2019/20

Members’ and their staff Achieved Once or more 97% 99% use of library services 100% per year: Achieved Five or more 80% 96% 95%

Achieved Ten or more 60% 91% 90%

Financial performance Parliamentary Library Research and Information (Figures are $000s and GST exclusive)

2020 2020 2020 Actual Main Estimates Supp Estimates

Total Expenditure 5,351 6,127 5,391

7 The restrictions in place under COVID-19 alert levels 2, 3 and 4 created tremendous demand on the IST Service Desk and support teams as staff and members on precinct and across the country moved to remote working. The lockdown period also complicated issue resolution processes, which increased time to resolve for all request and issue types. 64 Parliamentary Service Annual Report 2019/2020

Personnel, Accounting and Advisory Services to members and other parliamentary agencies This category is intended to achieve the supply of finance, human resource and advisory services

Measure Performance standard 2018/19 2019/20

Employment agreements Achieved Members’ staff 95% New measure for staff are produced 97.2% within three working days from the date the candidate’s application is received through the online Achieved Corporate staff 95% New measure e-recruitment system, 100% following a request from a member and receipt of a completed nomination form

Provision of accurate and timely payroll services to six Achieved 99.5% Achieved organisations 99.9%

Travel requests are responded to within Achieved 80% New measure 2 business hours of 95% receipt

Former member reimbursement Provision of timely travel requests to be services processed within the parliamentary Achieved pay cycle providing 80% New measure 98.3% all documentation is submitted and the request arrives in time to meet finance deadlines.

Provision of timely Invoices are paid within Not achieved accounting services 10 working days of 95% New measure 92.9%8 Finance receiving them

Financial reporting is Achieved Crown (working day 10) 90% New measure distributed within the 93.2% agreed timeframe with Departmental (working Not achieved parliamentary agencies 90% New measure day 5) 89.2%9

Financial performance Personnel, Accounting and Advisory Services to members and other parliamentary agencies (Figures are $000s and GST exclusive)

2020 2020 2020 Actual Main Estimates Supp Estimates

Total Expenditure 9,958 11,968 12,433

8 Prior to March 2020 payments were made fortnightly which meant if invoices came in late there was potential for payment outside the 10 working day standard. From March 2020 we have implemented weekly payment runs. 9 The June 2020 reports were sent on working day 6. This was to allow additional time to ensure the year end results were robust. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 65

Statement of responsibility Te tauākī haepapa

I am responsible, as Chief Executive of the Parliamentary Service, for: • the preparation of the Parliamentary Service’s financial statements and statements of expenses and capital expenditure, and for the judgements expressed in them; • having in place a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; • ensuring that end of year performance information on each appropriation administered by the Parliamentary Service is provided in accordance with sections 19A to 19C of the Public Finance Act 1989, whether or not that information is included in this Annual Report; and • the accuracy of any end of year performance information prepared by the Parliamentary Service, whether or not that information is included in the Annual Report.

In my opinion: • the financial statements fairly reflect the financial position of the Parliamentary Service as at 30 June 2020 and its operations for the year ended on that date; and • the forecast financial statements fairly reflect the forecast financial position of the Parliamentary Service as at 30 June 2021 and its operations for the year ending on that date.

Rafael Gonzalez-Montero Chief Executive

10 November 2020 66 Parliamentary Service Annual Report 2019/2020

Independent Auditor’s Report Tā te kaiarotake pūrongo

To the readers of Parliamentary Service’s annual report for the year ended 30 June 2020 The Auditor-General is the auditor of Parliamentary Service (the Service). The Auditor-General has appointed me, John Whittal, using the staff and resources of Audit New Zealand, to carry out, on his behalf, the audit of:

• the financial statements of the Service on pages 73 to 79 and 82 to 97, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2020, the statement of comprehensive revenue and expense, statement of changes in taxpayers’ funds, and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; • the performance information prepared by the Service for the year ended 30 June 2020 on pages 59 to 64; • the statements of expenses and capital expenditure of the Service for the year ended 30 June 2020 on pages 80 to 81 and 110 to 114; • the schedule on expenditure on travel entitlements of former members and their spouse or partner on pages 115 to 118; and • the schedules of non departmental activities which are managed by the Service on behalf of the Crown on pages 100 to 110 that comprise: - the schedules of assets; liabilities; commitments; and contingent liabilities and assets as at 30 June 2020; - the schedules of expenses; and revenue for the year ended 30 June 2020; and - the notes to the schedules that include accounting policies and other explanatory information.

Opinion In our opinion:

• the financial statements of the Service on pages 73 to 79 and 82 to 97: - present fairly, in all material respects: • its financial position as at 30 June 2020; and • its financial performance and cash flows for the year ended on that date; and - comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards. • the performance information of the Service on pages 59 to 64: - presents fairly, in all material respects, for the year ended 30 June 2020: • what has been achieved with the appropriation; and • the actual expenses or capital expenditure incurred compared with the appropriated or forecast expenses or capital expenditure; and - complies with generally accepted accounting practice in New Zealand. • the statements of expenses and capital expenditure of the Service on pages 80 to 81 and 100 to 114 are presented fairly, in all material respects, in accordance with the requirements of section 45A of the Public Finance Act 1989. • the schedule of expenditure on travel entitlements of former members and their spouse or partner on pages 115 to 118 is presented fairly, in all material respects; in accordance with section 42 of the Members of Parliament (Remuneration and Services) Act 2013. • the schedules of non departmental activities which are managed by the Service on behalf of the Crown on pages 100 to 110 present fairly, in all material respects, in accordance with the Treasury Instructions: Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 67

- the assets; liabilities; commitments; and contingent liabilities and assets as at 30 June 2020; and - expenses; and revenue for the year ended 30 June 2020. Our audit was completed on 10 November 2020. This is the date at which our opinion is expressed.

The basis for our opinion is explained below, and we draw attention to the impact of Covid-19 on the Service and the activities it manages on behalf of the Crown. In addition, we outline the responsibilities of the Chief Executive and our responsibilities relating to the information to be audited, we comment on other information, and we explain our independence.

Emphasis of matter – Impact of Covid-19 Without modifying the opinion, we draw attention to the disclosures about the impact of Covid-19 on the Service as set out in note 19 to the departmental financial statements, note 10 to the non-departmental statements and schedules and page 59 of the performance information.

Basis for our opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of the Chief Executive for the information to be audited The Chief Executive is responsible on behalf of the Service for preparing the:

• financial statements that present fairly the Service’s financial position, financial performance, and its cash flows, and that comply with generally accepted accounting practice in New Zealand. • performance information that presents fairly what has been achieved with each appropriation, the expenditure incurred as compared with expenditure expected to be incurred, and that complies with generally accepted accounting practice in New Zealand. • statements of expenses and capital expenditure of the Service, that are presented fairly, in accordance with the requirements of the Public Finance Act 1989. • schedule of expenditure on travel entitlements of former members and their spouse or partner is presented fairly, in all material respects; in accordance with section 42 of the Members of Parliament (Remuneration and Services) Act 2013. • schedules of non departmental activities, in accordance with the Treasury Instructions, that present fairly those activities managed by the Service on behalf of the Crown.

The Chief Executive is responsible for such internal control as is determined is necessary to enable the preparation of the information to be audited that is free from material misstatement, whether due to fraud or error.

In preparing the information to be audited, the Chief Executive is responsible on behalf of the Service for assessing the Service’s ability to continue as a going concern. The Chief Executive is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless there is an intention to merge or to terminate the activities of the Service, or there is no realistic alternative but to do so.

The Chief Executive’s responsibilities arise from the Public Finance Act 1989. 68 Parliamentary Service Annual Report 2019/2020

Responsibilities of the auditor for the information to be audited Our objectives are to obtain reasonable assurance about whether the information we audited, as a whole, is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers, taken on the basis of the information we audited.

For the budget information reported in the information we audited, our procedures were limited to checking that the information agreed to the Service’s Strategic Intentions 2019-2023 and relevant Estimates, Supplementary and Additions to Supplementary Estimates of Appropriations 2019/20, and the 2019/20, forecast financial figures included in the Service’s 2018/19 annual report.

We did not evaluate the security and controls over the electronic publication of the information we audited.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

• We identify and assess the risks of material misstatement of the information we audited, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Service’s internal control. • We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Chief Executive. • We evaluate the appropriateness of the reported performance information within the Service’s framework for reporting its performance. • We conclude on the appropriateness of the use of the going concern basis of accounting by the Chief Executive and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Service’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the information we audited or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Service to cease to continue as a going concern. • We evaluate the overall presentation, structure and content of the information we audited, including the disclosures, and whether the information we audited represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Chief Executive regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 69

Other information The Chief Executive is responsible for the other information. The other information comprises the information included on pages 1 to 6, and 47 to 119, but does not include the information we audited, and our auditor’s report thereon.

Our opinion on the information we audited does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

Our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the information we audited or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Independence We are independent of the Service in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1: International Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

Other than in our capacity as auditor, we have no relationship with, or interests in, the Service.

John Whittal Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand 70 Parliamentary Service Annual Report 2019/2020 Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 71

Parliamentary Service Annual Report Te Pūrongo ā-Tau a te Ratonga Pāremata

Financial Statements 30 June 2020 Taukī Pūtea 30 Pipiri 2020

Key to the Financial Statements Ngā Whakamārama ki ngā Taukī Pūtea

Additional information

Judgements and estimates

Notes to the statements

Policies and procedures 72 Parliamentary Service Annual Report 2019/2020

Financial Overview Tirohanga Whānui Ki te Pūtea

Parliamentary Service’s operational review Te arotake mahi o Te Ratonga Pāremata

The Service received Crown funding of $60.2m and third- Bowen House seismic issues party revenue of $6.6m for the provision of services to At the end of 2018, the Ministry of Business, Innovation other agencies and rental income. Operational expenditure and Employment issued a revised engineering guidance was $67.2m. for assessing buildings with precast hollow core flooring. Following this, the Service proactively embarked on a Building and operational management on the parliamentary process of evaluating Bowen House against the new precinct is the largest cost at $28.5m and includes all on guidance. The Service was not comfortable with the result precinct security, visitor services, educational tours, and and ongoing discussions are being finalised for an exit from building maintenance. An area of focus this year was the Bowen House. The Service has identified suitable alternate conversion of the library into suitable office spaces. accommodation and is in the process of finalising terms.

An area of focus this year has been on our accommodation. A decision was made that all staff and members will decant In the short term, we have been planning for the decant from Bowen House to allow the landlord to undertake to allow the earthquake strengthening of Bowen House earthquake strengthening activities. All members and to proceed. There has also been significant activity their support staff will be relocated to the Crown owned investigating future accommodation options. This work buildings. The majority of corporate staff will decant to involves working closely with the Government Property the TSB building at 149 Lambton Quay. Alongside this, Group and is ongoing. a significant amount of work has gone into the future accommodation strategy, this includes the submission Information, communication and technology (ICT) services cost of designs for the remediation/rebuild of the EW Annex $19.7m. A large portion of the costs relate to the provision (currently going through the consent process). Work on of ICT services to members and their support staff. the future accommodation is ongoing and centres around what is the next move from TSB. Human resources support, finance, member services and advisory services cost $9.9m. As a result, an onerous lease has been identified but its quantum is not yet known, the Service has taken steps to With major structural changes being made in late 2019/20, write off and impair leasehold improvements within Bowen the focus in this year was embedding new operating models. House. The move from Bowen House will commence Investment and resource in this area has been directed to November 2020. improve customer service.

Parliamentary Library cost $5.3m. The Library provides research and information services to members and their support staff. Parliamentary accommodation Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 73

Financial Statements Taukī Pūtea

Statement of comprehensive revenue and expense For the year ended 30 June 2020

Unaudited 2019 Notes 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 $000 $000 $000 $000

Revenue

56,104 Crown 60,247 58,952 58,678 63,628

6,025 Department 2 6,338 5,909 5,779 6,389

321 Other revenue 2 309 481 331 481 62,450 Total revenue 66,894 65,342 64,788 70,498

Expenses

24,771 Personnel 3 26,395 25,407 26,417 27,126

4,590 Depreciation and amortisation 8 & 9 8,379 5,146 4,857 4,598

1,893 Capital charge 4 1,633 1,893 1,633 1,633

31,184 Operating expenses 5 30,823 32,896 31,881 37,141 62,438 Total expenses 67,230 65,342 64,788 70,498

12 Surplus/(Deficit) (336) - - -

Other comprehensive revenue and expense

2,439 Asset Revaluation loss - - - -

2,439 Total other comprehensive revenue and expense - - - -

(2,427) Total comprehensive revenue and expense (336) - - -

Explanations of major variances against the Budget are provided in Note 18. The notes to the accounts form part of and are to be read in conjunction with these financial statements 74 Parliamentary Service Annual Report 2019/2020

Statement of financial position as at 30 June 2020

Unaudited 2019 Notes 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 $000 $000 $000 $000 Assets Current assets 3,992 Cash and cash equivalents 4,975 2,230 3,256 8,039 13,483 Debtors and other receivables 6 11,735 13,381 11,483 11,483 1,255 Prepayments 1,935 985 1,255 1,255 128 Inventory 7 205 57 128 128 18,858 Total current assets 18,850 16,653 16,122 20,905

Non-current assets 11,236 Property, plant & equipment 8 8,267 15,863 12,171 10,947 7,275 Intangible assets 9 6,054 7,954 6,570 7,486 18,511 Total non-current assets 14,321 23,817 18,741 18,433

37,369 Total assets 33,171 40,470 34,863 39,338

Liabilities Current liabilities 4,988 Creditors and other payables 10 3,320 3,715 4,988 4,988 12 Provision for repayment of surplus 12 3,098 - - - 1,526 Employee entitlements 11 2,036 2,175 1,893 1,893 185 Provision - Holiday Pay 280 - 185 185 6,711 Total current liabilities 8,734 5,890 7,066 7,066

Non-current liabilities 947 Employee entitlements 11 910 830 836 836 7,658 Total liabilities 9,644 6,720 7,902 7,902

29,711 Net assets 23,527 33,750 26,961 31,436

Taxpayers' funds 29,711 Taxpayer funds 13 23,527 33,750 26,961 31,436 29,711 Total taxpayers' funds 23,527 33,750 26,961 31,436

Cash and cash equivalents include all cash held in the bank accounts. All cash held in bank accounts is held in on demand accounts and no interest is payable to the Service. The Service is only permitted to expend its cash and cash equivalents within the scope and limits of its appropriations.

Explanations of major variances against the Budget are provided in Note 18. The notes to the accounts form part of and are to be read in conjunction with these financial statements Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 75

Statement of changes in taxpayers’ funds for the year ended 30 June 2020

Unaudited 2019 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 Notes $000 $000 $000 $000

31,550 Opening Balance 29,711 32,150 29,711 26,961

(2,427) Total comprehensive revenue and expense (336) - - -

Owner transactions

600 Capital injection - cash 2,250 1,600 2,250 4,475

- Capital withdrawal - noncash (5,000) - (5,000) -

(12) Return of operating surplus to Crown 12 (3,098) - - -

29,711 Total taxpayer funds 23,527 33,750 26,961 31,436

Taxpayers’ funds is the Crown’s investment in the Service and is measured as the difference between total assets and total liabilities.

Explanations of major variances against the Budget are provided in Note 18. The notes to the accounts form part of and are to be read in conjunction with these financial statements 76 Parliamentary Service Annual Report 2019/2020

Statement of cash flows for the year ended 30 June 2020

Unaudited 2019 Notes 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 $000 $000 $000 $000

Cash flows from operating activities

56,104 Receipts from revenue Crown 57,213 58,952 55,678 63,628

6,173 Receipts from other revenue 6,365 6,390 6,123 6,870

(30,205) Payments to suppliers (33,244) (32,652) (31,829) (37,089)

(24,699) Payments to employees (25,661) (25,651) (26,213) (27,178)

(1,893) Payments for capital charge (1,633) (1,893) (1,633) (1,633)

132 Goods and services tax (net) 58 - - -

5,612 Net cash flow from operating activities 3,098 5,146 2,126 4,598

Cash flows from investing activities

(2,582) Purchase of property, plant and equipment (2,877) (3,355) (3,110) (951)

(2,262) Purchase of intangible assets (1,476) (3,274) (1,990) (3,339)

(4,844) Net cash flow from investing activities (4,353) (6,629) (5,100) (4,290)

Cash flows from financing activities:

600 Capital injections 2,250 1,600 2,250 4,475

(1,398) Return of operating surplus (12) - (12) -

(798) Net cash flow from financing activities 2,238 1,600 2,238 4,475

(30) Net increase/(decrease) in cash held 983 117 (736) 4,783

4,022 Cash at the beginning of the year 3,992 2,113 3,992 3,256

3,992 Cash at the end of the year 4,975 2,230 3,256 8,039

The GST (net) component of operating activities reflects net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis to be consistent with the presentation basis of the other primary financial statements.

Explanations of major variances against the Budget are provided in Note 18. The notes to the accounts form part of and are to be read in conjunction with these financial statements Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 77

Statement of cash flows (continued) for the year ended 30 June 2020

Reconciliation of net surplus/(deficit) to net cash flow from operating activities

Unaudited 2019 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 Notes $000 $000 $000 $000

12 Net surplus/(deficit) (336) - - - Add/(less) non-cash items

4,590 Depreciation and amortisation 8,379 5,146 4,857 4,598

117 Inc/(Dec) in non-current employee entitlements (37) - - -

132 Inc/(Dec) in GST Payable 58 - - -

- Asset Write offs 151 - - -

- Non cash capital withdrawal (5000) - - -

4,839 Total non-cash items 3,551 5,146 4,857 4,598

Add/(less)movements in deferrals and accruals

(102) (Inc)/Dec in debtors 1,761 - (2,987) -

(270) (Inc)/Dec in prepayments (680) - - -

(71) (Inc)/Dec in inventory (77) - - -

1,141 Inc/(Dec) in creditors and other payables (1,726) - - -

63 Inc/(Dec) in provision for current employee entitlements 605 - 256 -

761 Total net movement in working capital items (117) - (2,731) -

5,612 Net cash flow from operating activities 3,098 5,146 2,126 4,598

The GST component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

Explanations of major variances against the Budget are provided in Note 18. The notes to the accounts form part of and are to be read in conjunction with these financial statements 78 Parliamentary Service Annual Report 2019/2020

Statement of commitments as at 30 June 2020

2019 2020 Actual Actual $000 $000

Capital Commitments

1,970 Buildings -

1,970 -

Non-cancellable operating lease commitments

7,647 Not later than one year 8,038

20,647 One to five years 13,264

4,276 More than five years 3,621 32,570 Total non-cancellable operating lease commitments 24,923

Non-cancellable operating lease commitments

The Service has long-term leases on its premises in No. 3 The Terrace Wellington which are subject to three-yearly reviews. The • Used for select committee and meeting room Service has three current property leases, all are fixed term accommodation. and there are no contingent rents. There are no restrictions • The lease has a fixed annual rent; and imposed by the lease arrangements. • Is cancellable after 24 years from the start of the lease; Bowen House and • This lease covers office accommodation, two • Has no lease renewal dates. residential units and car parks. The Thorndon Store • The current lease is to 14 December 2022 and has two rights of renewal each for six years. The final expiry • Used as an off-site storage facility; and date is 14 December 2034. • Has a lease renewal date of 31 August 2021.

• Rent will increase by 2% per annum compounding Other non-cancellable commitments each year from 2018 – 2021 inclusive. The Service has entered into non-cancellable contracts for • In 2022, the rent will undergo a market rent review. computer support, building services and other contracts for services.

Explanations of major variances against the Budget are provided in Note 18. The notes to the accounts form part of and are to be read in conjunction with these financial statements Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 79

Statement of commitments (continued) as at 30 June 2020

Operating leases as a lessor

2019 2020 Actual Actual $000 $000

Non-cancellable operating leases

869 Not later than one year 878

1,860 Later than one year and not later than five years 1,057

2,729 Total non-cancellable operating leases 1,935

The Service has three non-cancellable leases related to retail operations in Bowen House. The Service also has cancellable leases related to residential accommodation tenancies in Bowen House and office tenancies in Bowen House and Parliament House.

Statement of contingent liabilities and contingent assets as at 30 June 2020

Contingent liabilities There were no quantifiable contingent liabilities in 2020 (2019: nil).

There are two unquantifiable contingent liabilities in 2020 relating to a defamation case and a potential onerous lease (2019: nil).

Contingent assets There are no contingent assets in 2020 (2019: nil).

The notes to the accounts form part of and are to be read in conjunction with these financial statements 80 Parliamentary Service Annual Report 2019/2020

Appropriation statements Taukī Tohatohanga Pūtea

Statement of expenses and capital expenditure incurred without, or in excess of, appropriation or other authority for the year ended 30 June 2020

The Service did not have any unappropriated expenditure in 2020 (2019: nil).

Statement of departmental capital injections without, or in excess of, authority for the year ended 30 June 2020

The Service did not receive any capital cash injections during the year without, or in excess of authority in 2020 (2019: nil).

Statement of departmental expenses and capital expenditure against appropriations for the year ended 30 June 2020

Unaudited 2019 2020 2020 2020 Location of Actual Actual Main Supp end-of-year Estimates Estimates performance $000 $000 $000 $000 information

Departmental output expenses

270 Support Services to the Speaker 148 243 168 60 270 Total departmental output expenses 148 243 168

Departmental output expenses

Multi-Category Appropriation - Operations, Information and Advisory Services

Parliamentary information communications and 18,936 19,759 18,776 19,646 62-63 technology services

28,264 Building and operations management 28,580 28,228 29,544 60-63 Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 81

Unaudited 2019 2020 2020 2020 Location of Actual Actual Main Supp end-of-year Estimates Estimates performance $000 $000 $000 $000 information

5,301 Parliamentary library 5,351 6,127 5,391 63

Personnel, accounting and advisory services to 9,667 9,958 11,968 12,433 64 members and other parliamentary agencies 62,168 Total multi-category appropriation 63,648 65,099 67,014

62,438 Balance at 30 June 2020 63,796 65,342 67,182

Parliamentary Service - capital expenditure

4,844 Permanent legislative authority 4,353 6,629 5,086

Departmental other expenses

- Other - Onerous Lease and Asset Write offs 3,434 - 30,819

Statement of departmental capital injections for the year ended 30 June 2020

Unaudited 2019 2020 2020 2020 Supp Actual Actual Main Estimates Estimates $000 $000 $000 $000

Departmental capital injections

600 Departmental capital injections 2,250 1,600 2,250 600 Total departmental capital injections 2,250 1,600 2,250

Explanations of major variances against the Budget are provided in Note 18. The notes to the accounts form part of and are to be read in conjunction with these financial statements 82 Parliamentary Service Annual Report 2019/2020

Notes to the Financial Statements

Note 1 Statement of accounting policies

Reporting entity Significant accounting policies Parliamentary Service (the “Service”) is a Government Significant accounting policies are included in the notes to Department as defined by the Public Finance Act 1989 (PFA) which they relate. and is domiciled and operates in New Zealand. The relevant legislation governing the Service’s operations includes the Goods and services tax (GST) PFA and the Parliamentary Service Act 2000. The Service’s The financial statements, including appropriation ultimate parent is the New Zealand Crown. statements, are exclusive of GST, except for Creditors and Debtors, which are GST inclusive. All other statements and In addition, the Service has reported on Crown activities notes are GST exclusive. that it administers. The amount of GST owing to or from the Inland Revenue The Service’s primary objective is to provide services to Department at balance date, being the difference between members of Parliament and other agencies rather than Output GST and Input GST, is included in Creditors or making a financial return. Debtors, as appropriate.

The Service has designated itself as a public benefit entity Commitments and contingencies are disclosed excluding (PBE) for financial reporting purposes. GST.

The financial statements of the Service are for the year ended Income tax 30 June 2020. The financial statements were authorised for The Service is a public authority and consequently is issue by the Chief Executive on 30 October 2020. exempt from the payment of income tax in terms of the Income Tax Act 2007. Accordingly, no provision for income Basis of preparation tax has been made. The financial statements have been prepared on a going concern basis, and the accounting policies have been Cost allocation policy applied consistently throughout the period. The Service has determined the cost of outputs using the cost allocation system outlined below: Measurement base • Direct costs are those costs directly attributed to an The financial statements have been prepared ona output. Direct costs are charged directly to outputs. historical cost basis. • Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific Statement of compliance output. Indirect costs are charged to outputs based on The financial statements of the Service have been prepared cost drivers and related activity or usage information. pursuant to the Public Finance Act 1989, which includes • Depreciation and capital charge are charged on the the requirement to comply with New Zealand generally basis of asset utilisation. accepted accounting practice (NZ GAAP), and Treasury • Personnel costs are charged based on actual time Instructions. incurred. • Chief Executive’s Costs are considered to be indirect The financial statements have been prepared in accordance costs and are allocated to the different areas of the and compliance with Tier 1 PBE accounting standards. business based on spend patterns.

Presentation currency and rounding Critical accounting estimates and assumptions The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the Service is New Zealand dollars. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 83

In preparing these financial statements, estimates and The forecast has been compiled on the basis of existing assumptions have been made concerning the future. government policies and ministerial expectations at These estimates and assumptions may differ from the the time the statements were finalised. They reflect all subsequent actual results. Estimates and assumptions government decisions at the date the information was are continually evaluated and are based on historical prepared. Whilst the Service regularly updates its forecasts, experience and other factors, including expectations of updated forecast financial statements for the year ending future events that are believed to be reasonable under 30 June 2021 will not be published the circumstances. The 2020 main estimate figures are for the year ended 30 The estimates and assumptions that have a significant risk June 2020 and were published in the 2019 annual report of causing a material adjustment to the carrying amounts as forecast numbers. They are consistent with the Service’s of assets and liabilities within the next financial year are best estimate financial forecast information submitted to referred under the relevant notes. Treasury as part of the 2019 Budget Economic and Fiscal Update (BEFU). The forecast financial figures contained in these financial statements reflect the Service’s purpose and activities The 2021 forecast figures are for the year ending 30 June and are based on a number of assumptions on what may 2021, these are consistent with the best estimate financial occur during the 2020/21 year. The forecast figures have forecast information submitted to Treasury as part of the been compiled on the basis of existing government policies 2020 BEFU. and ministerial expectations at the time the Estimates of Appropriation were finalised. The 2020 supplementary estimate figures are adjusted 2020 main estimate figures as reported in the 2020 The main assumptions adopted for the forecast were as Supplementary Estimates of Appropriation. follows: The forecast financial statements have been prepared as • The Service’s activities will remain substantially the required by the Public Finance Act 1989 to communicate same as for the previous year. forecast financial information for accountability purposes.

• Financial year 2020/21 funding increased mainly The estimates and forecast figures are unaudited and have due to a successful budget bid to improve precinct been prepared using the accounting policies adopted in security. preparing these financial statements.

• Operating costs are based on historic experience. The The 30 June 2021 forecast figures have been prepared in general pattern is expected to continue. accordance with and comply with PBE FRS 42 Prospective Financial Statements. • Estimated year-end information for 2020 is used as the opening position for the 2021 forecasts. The Chief Executive is responsible for the forecast financial statements, including the appropriateness of • Forecast 2021 is subject to budget initiatives and the assumptions underlying them and all other required technical adjustments that may occur throughout the disclosures. financial year.

The Statement of Representation for the BEFU forecast was signed 8 April 2020.

Forecast policies 84 Parliamentary Service Annual Report 2019/2020

Note 2: Department and other revenue

Unaudited 2019 2020 2020 2020 Supp 2021 Actual Actual Main Estimates Forecast Estimates $000 $000 $000 $000 $000

2,378 ICT services including network support 2,449 2,355 2,251 2,531

2,130 Services to the Office of the Clerk 2,476 2,380 2,276 2,559

218 Services to the Parliamentary Counsel Office 218 210 200 225

1,291 Rental revenue 1,156 1,111 1,063 1,195

38 Parliament shop trading 34 33 31 35

291 Other 314 301 289 325

6,346 Total department and other revenue 6,647 6,390 6,110 6,870

6,025 Department revenue 6,338 5,909 5,779 6,389

321 Other revenue 309 481 331 481

6,346 Total department and other revenue 6,647 6,390 6,110 6,870

Revenue Crown Other Revenue Revenue Crown transactions are considered Departmental revenue: revenue received from other to be non-exchange transactions. Revenue government departments in exchange for service provided. Crown is measured based on Parliamentary Service’s funding entitlement for the reporting period. The funding Sale of services: the sale of services is recognised in the entitlement is established by Parliament when it passes accounting period in which the services are provided. the Appropriation Acts for the financial year. The amount of revenue recognised takes into account any amendments Rental revenue from sub-leasing: rental revenue under an to appropriations approved in the Appropriation operating sublease is recognised as revenue on a straight- (Supplementary Estimates) Act for the year and certain line basis over the lease term. other unconditional funding adjustments formally approved prior to balance date.

There are no conditions attached to the funding from the Crown. However, the Service can incur expenses only within the scope and limits of its appropriations.

The fair value of Revenue Crown has been determined to be equivalent to the funding entitlement. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 85

Note 3: Personnel costs

Unaudited 2019 2020 2020 2020 Supp 2021 Actual Actual Main Estimates Forecast Estimates $000 $000 $000 $000 $000

24,330 Salaries and wages 25,612 24,442 25,839 26,548

189 Employer contribution to defined contribution plans* 169 185 163 163

180 Increase/(Decrease) in employee entitlements 568 708 367 367

72 Other 46 72 48 48

24,771 Total personnel costs 26,395 25,407 26,417 27,126

* Employer contributions to defined contribution plans include contributions to the State Sector Retirement Savings Scheme, KiwiSaver, and the Government Superannuation Fund.

Superannuation Schemes: Defined contribution schemes: obligations for the Government Superannuation Fund. GSF is a defined contributions to the State Sector Retirement benefit plan. Insufficient information is available touse Savings Scheme, KiwiSaver and the Government defined benefit accounting; as it is not possible to determine Superannuation Scheme (GSF) are accounted for as defined from the terms of the scheme the extent to which the contribution superannuation schemes and are recognised surplus or deficit will affect future contributions by individual as an expense in the surplus or deficit as incurred. employers, as there is no prescribed basis for allocation. As a result, no liability is recognised. The scheme is therefore Defined benefit schemes: the Service belongs to the GSF and accounted for as a defined contribution scheme. has employees who are members of

Note 4: Capital charge

The capital charge for the year ended 30 June Capital charge is an expense based on the Crown’s 2020 was $1.6 million (2019: $1.9 million) and was investment in Parliamentary Service. The expense is charged at a rate of 6% (2019: 6%). recognised in the period to which the charge relates. The Service pays a capital charge to the Crown on taxpayers’ funds as at 30 June and 31 December each year. 86 Parliamentary Service Annual Report 2019/2020

Note 5: Operating expenses Unaudited 2019 2020 2020 2020 Supp 2021 Actual Actual Main Estimates Forecast Estimates $000 $000 $000 $000 $000

133 Fees to Auditor for audit of financial statements 135 122 135 138

5,287 Operating lease rentals 5,311 5,286 5,305 5,305

907 Consultancy 972 939 853 853

8,370 Information technology costs 7,954 8,647 7,818 7,818

5,349 Maintenance 5,429 4,885 4,426 4,426

3,704 Premises costs & utilities 3,810 3,745 3,904 3,904

183 Restructuring costs 100 316 100 100

- Net loss on disposal of property, plant, and equipment 151 - - -

7,251 Other expenses 6,961 8,956 9,340 14,597

31,184 Total operating expenses 30,823 32,896 31,881 37,141

Note 6: Debtors and other receivables

Unaudited 2019 2020 2020 2020 2021 Actual Actual Main Supp Forecast Estimates Estimates $000 $000 $000 $000 $000

13,111 Debtor Crown 11,145 13,111 11,111 11,111

107 Department 444 6 107 107

265 Other debtors 146 264 265 265 13,483 Total debtors and other receivables 11,735 13,381 11,483 11,483

Debtor Crown reflects undrawn Revenue Crown The Service had not yet been reimbursed for these funding and is categorized as a non-exchange payments at balance date. The carrying value of debtors transaction; all other categories originate from and other receivables approximates their fair value. The exchange transactions. aging profile of receivables at year end is detailed below:

Departmental receivables incorporate payments made on behalf of Parliamentary Service Crown activity, the Parliamentary Counsel Office and the Office of the Clerk. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 87

2019 2020 Actual Actual $000 $000

13,475 Not past due 11,710

3 Past due 1-30 days 25

5 Past due over 30 days -

13,483 Total 11,735

Short term debtors or receivables are recorded at the amount due, less any provision for un-collectability. A receivable is considered uncollectable when there is evidence that the Service will not be able to collect the amount due. The amount that is uncollectable is the difference between the amount due and the present value of the amount expected to be collected.

Note 7: Inventory

2019 2020 Actual Actual $000 $000 Held for distribution

128 Inventories held for use in the provision of goods and services 205

128 Total Inventory 205

Inventory consists of computer equipment. Inventory is carried at the lower of cost or net realisable value. The Service applies a weighted average cost formula. Inventory is tested for impairment annually. No inventories are pledged as security for liabilities or subject to retention of title clauses.

Inventory held for distribution or consumption The amount of any write-down for the loss of service in the provision of services are measured at cost potential or from cost to net realisable value is recognised adjusted, when applicable, for any loss of service in the surplus or deficit in the period of the write-down. potential. The Service applies the weighted average cost method.

Inventory held for sale is valued at the lower of cost and net realisable value (using the weighted average cost method). 88 Parliamentary Service Annual Report 2019/2020

Note 8: Property, plant and equipment

Leasehold Office Property Motor Plant & Teleco Library Work in all units $000 Furniture Computers Equipment Improvements Vehicles Equipment Equipment Collections Progress Total

Cost or valuation

Balance at 1 July 2018 3,656 8,267 1,584 22,207 143 5,010 1,008 4,580 994 47,449

Additions - 12 49 75 - - - - 2,445 2,581

Revaluation ------(2,771) - (2,771)

Work in progress 13 1,001 2 266 - 233 - 64 (1,579) -

Disposals (3) (1,859) (199) - - - (5) - - (2,066)

Adjustments 1 - - - (1) - (1) 2 - 1

Balance at 30 June 2019 3,667 7,421 1,436 22,548 142 5,243 1,002 1,875 1,860 45,194

Balance at 1 July 2019 3,667 7,421 1,436 22,548 142 5,243 1,002 1,875 1,860 45,194

Additions - - - 16 - - - - 2,843 2,859

Work in progress 34 847 - 2,089 - 1,368 - - (4,338) -

Disposals (69) (80) (21) (6,653) - (244) - (151) - (7,218)

Adjustments - 1 1 - - - 1 - 1 4

Balance at 30 June 2020 3,632 8,189 1,416 18,000 142 6,367 1,003 1,724 366 40,839

Accumulated depreciation and impairment losses

Balance at 1 July 2018 (3,463) (7,444) (1,444) (16,419) (16) (4,771) (797) (213) - (34,567)

Depreciation expense (31) (528) (46) (940) (28) (42) (55) (119) - (1,789)

Adjustments ------(1) - (1)

Eliminate on disposal 3 1,859 199 - - - 5 - - 2,066

Eliminate on revaluation ------333 - 333

Balance at 30 June 2019 (3,491) (6,113) (1,291) (17,359) (44) (4,813) (847) - - (33,958)

Balance at 1 July 2019 (3,491) (6,113) (1,291) (17,359) (44) (4,813) (847) - - (33,958)

Depreciation expense (33) (593) (50) (1,168) (28) (131) (55) (190) - (2,248)

Eliminate on disposal 68 80 21 6,652 - 244 - - - 7,065

Impairment losses (47) - - (3,205) - (182) - - - (3,434)

Adjustments 1 (1) 1 1 1 - - - - 3

Balance at 30 June 2020 (3,502) (6,627) (1,319) (15,079) (71) (4,882) (902) (190) - (32,572)

Carrying amounts

At 30 June 2018 193 823 140 5,788 127 239 211 4,367 994 12,882

At 30 June 2019 176 1,308 145 5,189 98 430 155 1,875 1,860 11,236

At 30 June 2020 130 1,562 97 2,921 71 1,485 101 1,534 366 8,267 Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 89

Property, plant and equipment Library collections are revalued at least every three years Property, plant, and equipment (PPE) consists or whenever the carrying amount differs materially to fair of furniture, plant and equipment, office equipment, value. Unrealised gains and losses arising from changes in computers, motor vehicles, leasehold improvements, and the value are recognised as other comprehensive revenue telecommunication equipment. PPE acquired through non- and expense. exchange transactions are measured at fair value at the date of acquisition. PPE is measured at cost, less accumulated Accumulated depreciation at revaluation date is eliminated depreciation and impairment losses. against the gross carrying amount so that the carrying amount after revaluation equals the revalued amount. All property, plant and equipment costing more than $5,000 excluding GST is capitalised and recorded at historical cost. The carrying values of revalued assets are internally assessed by the Service on an annual basis to ensure that Additions they do not differ materially from the assets’ fair values. The cost of an item of property, plant, and equipment is If there is a material difference, then the off-cycle asset recognised as an asset if it is probable that future economic classes are revalued. Additions between revaluations are benefits or service potential associated with the item will recorded at cost. flow to the Service and the cost of the item can be measured reliably. The Library collections are valued at fair market value on a three-yearly basis by independent registered valuers. The Work in progress is recognised at cost less impairment and last valuation was completed as at 30 June 2019 by Ashley is not depreciated. The total cost of this work is transferred and Associates. to the relevant asset category on its completion. The Library collection valuation was completed in Disposals accordance with: Gains and losses on disposals are determined by comparing • Public Benefit Entity International Public Sector the disposal proceeds with the carrying amount of the asset. Accounting Standard 17: Property, Plant and Gains and losses on disposals are included in the statement Equipment (PBE IPSAS 17). of comprehensive revenue and expense. When a revalued • Uniform Standards of Professional Appraisal Practice asset is sold, the amount included in the revaluation reserve (USPAP). in respect of the disposed asset is transferred to taxpayers’ funds. • International Valuation Standards Council (IVSC). High-Value Books and Maps were assessed individually, Subsequent costs while representative sampling and linear metre counts Costs incurred subsequent to initial acquisition are were used to value the remaining collections. Ashley and capitalised only when it is probable that future economic Associates conducted extensive research of 2000 database benefits or service potential associated with the item will and catalogue records for auction sales and consulted with flow to the Service and the cost of the item can be measured dealers in the subject property. reliably. The costs of day to day servicing of property, plant and equipment are recognised in the statement of The collection consists of numerous small value items which comprehensive revenue and expense as they are incurred. have been reclassified for June 2020 and will not be subject to future revaluations. Depreciation Depreciation is provided on a straight-line basis on all Impairment of property, plant, and equipment property, plant, and equipment at rates that will write-off Property, plant, and equipment that have a finite useful life the cost of the assets to their estimated residual values over are reviewed for impairment whenever events or changes their useful lives. in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the Valuation amount by which the asset’s carrying amount exceeds its Revaluations are carried out for Library collections to reflect recoverable amount. The recoverable amount is the higher the service potential or economic benefit obtained through of an asset’s fair value less costs to sell and value in use. control of the asset. Revaluation is based on the fair value of the asset with changes reported by class of asset. 90 Parliamentary Service Annual Report 2019/2020

Value in use is depreciated replacement cost for an asset If an asset’s carrying amount exceeds its recoverable where the future economic benefits or service potential of amount, the asset is impaired and the carrying amount the asset are not primarily dependent on the asset’s ability is written down to the recoverable amount. The total to generate net cash inflows and where the Service would, if impairment loss is recognised in the surplus or deficit. The deprived of the asset, replace its remaining future economic reversal of an impairment loss is recognised in the surplus benefits or service potential. or deficit.

The useful lives and associated depreciation rates of major classes of property, plant, and equipment have been estimated as follows:

Furniture 3 - 10 years

Plant and equipment 3 - 10 years

Office equipment 3 - 10 years

Computer systems 3 - 7 years

Motor vehicles 5 years

Leasehold property 1 - 34 years

Telecommunications equipment 3 – 7 years

Library Collections 3 – 7 years

Library Collections – rare and valuable Not depreciated

Leasehold improvements are depreciated over the June 2020, the Library collections have been unexpired period of the lease or the estimated remaining categorised as either depreciating or non- useful lives of the improvements, whichever is the shorter. depreciating to better represent current management’s opinion on this collection. The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year-end. Depreciating assets include the previously categorised Monographs and Serial collections. Assets are purchased on behalf of members of Parliament including for their out-of-Parliament offices. The useful The rest of the collection items are rare and valuable and life and associated depreciation rates for these assets are classified as non-depreciating assets. aligned to the Parliamentary term or the remainder of the Parliamentary term. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 91

Note 9: Intangibles

Internally Acquired generated Work in all units $000 Software software Progress Total Cost or valuation Balance at 1 July 2018 11,470 5,827 2,571 19,868 Additions - - 2,262 2,262 Transfers from work in progress - 2,715 (2,715) - Disposals (1,401) (192) - (1,593) Balance at 30 June 2019 10,069 8,350 2,118 20,537

Balance at 1 July 2019 10,069 8,350 2,118 20,537 Additions - - 1,476 1,476 Transfers from work in progress 1,633 1,547 (3,180) - Balance at 30 June 2020 11,702 9,897 414 22,013

Accumulated Amortisation and Impairment losses Balance at 1 July 2018 (9,744) (2,310) - (12,054) Amortisation expense (1,032) (1,769) - (2,801) Eliminate on disposal 1,401 192 - 1,593 Balance at 30 June 2019 (9,375) (3,887) - (13,262)

Balance at 1 July 2019 (9,375) (3,887) - (13,262) Amortisation expense (1,329) (1,368) - (2,697) Balance at 30 June 2020 (10,704) (5,255) - (15,959)

Carrying amounts At 30 June 2018 1,726 3,517 2,571 7,814 At 30 June 2019 694 4,463 2,118 7,275 At 30 June 2020 998 4,642 414 6,054

Software acquisition and development: computer Costs associated with maintaining computer software are software licences are capitalised based on the costs recognised as an expense when incurred. Costs of software incurred to acquire and bring to use the specific software. updates or upgrades are only capitalised when they Costs that are directly associated with the development of increase the usefulness or value of the software. software for internal use by the Service are recognised as Amortisation: the carrying value of an intangible asset with a an intangible asset. Direct costs can include the software finite life is amortised on a straight-line basis over its useful development, employee costs, and an appropriate portion life. Amortisation begins when the asset is available for use of relevant overheads. Staff training costs are recognised as and ceases at the date that the asset is derecognised. The an expense when incurred. amortisation charge for each period is recognised in the surplus or deficit. 92 Parliamentary Service Annual Report 2019/2020

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Computer software 3 - 7 years

Note 10: Creditors and other payables

Unaudited 2019 2020 2020 2020 Supp 2021 Actual Actual Main Estimates Forecast Estimates $000 $000 $000 $000 $000

Creditors and other payables under exchange transactions

67 Trade creditors 146 181 67 67

4,651 Accrued expenses 2,849 3,401 4,651 4,651 4,718 Total under exchange transactions 2,995 3,582 4,718 4,718

Creditors and other payables under non-exchange

transactions

5 Accrued FBT expense 2 - 5 5

265 GST payable (receivable) 323 133 265 265 270 Total under non-exchange transactions 325 133 270 270

4,988 Total creditors and other payables 3,320 3,715 4,988 4,988

2019 2020 Actual Actual $000 $000 67 Not past due 146

- Past due 1-30 days -

- Past due over 30 days -

67 Total 146

Creditors and other payables are non-interest originate from exchange transactions with the exception bearing and are normally settled on 30-day of taxes collected and held pending payment to the Inland terms. Therefore, the carrying value of creditors and Revenue Department on due date. other payables approximates their fair value. All creditors Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 93

Note 11: Employee entitlements

Unaudited 2019 2020 2020 2020 Supp 2021 Actual Actual Main Estimates Forecast Estimates $000 $000 $000 $000 $000

Current Liabilities

365 Retirement and long service leave 454 680 442 442

1,118 Annual leave 1,548 1,440 1,408 1,408

43 Sick leave 34 55 43 43

1,526 Total current portion 2,036 2,175 1,893 1,893

Non-current liabilities

947 Retirement and long service leave 910 830 836 836

947 Total non-current portion 910 830 836 836

2,473 Total employee entitlements 2,946 3,005 2,729 2,729

Short-term employee entitlements Employee benefits expected to be settled within 12 Expected future payments are discounted using market months of balance date are measured at nominal values yields on government bonds at balance date with terms to based on accrued entitlements at current rates of pay. maturity that match, as closely as possible, the estimated These include salaries and wages accrued up to balance future cash outflows for entitlements. The inflation factor is date, annual leave earned but not yet taken at balance date, based on the expected long-term increase in remuneration retiring and long service leave entitlements expected to be for employees. settled within 12 months, and sick leave. The value of long service leave, retirement leave and A liability for sick leave is recognised to the extent that sick leave as at 30 June 2020 have been calculated absences in the coming year are expected to be greater in accordance with Treasury circular 2009/06. The than the sick leave entitlements earned in the coming year. major economic long-term assumptions adopted in the The amount is calculated based on the history of sick leave valuation process for long service and retirement leave taken by all employees for the last three years to derive the were: average amount of accrued sick leave taken over and above Salary increase rate 2.72% p.a. 2019: 2.92% the entitlement for the year. Discount rate 1.63% p.a. 2019: 2.23%

Long-term employee entitlements For sick leave, the methodology was calculated according to Employee benefits that are due to be settled beyond 12 Treasury guidance and assumes that sick leave is a short- months after the end of the reporting period in which the term compensated absence, as defined in PBE IPSAS 25. employee renders the related service, such as long service leave and retiring leave, are calculated in accordance with Treasury circular 2009/06. The calculations are based on: • likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlements information; and • the present value of the estimated future cash flows. 94 Parliamentary Service Annual Report 2019/2020

Note 12: Return of operating surplus

2019 2020 Actual Actual $000 $000

12 Return of operating surplus to the Crown 3,098 12 Total return of operating surplus 3,098

The operating surplus is to be paid to the Crown by 31 October 2020.

Note 13: Taxpayers’ funds

2019 2020 Actual Actual $000 $000

31,550 Opening Taxpayers' funds 29,711

(2,427) Total comprehensive revenue and expense (336)

Owner transactions

600 Capital contribution - cash 2,250

- Capital withdrawal - noncash (5,000)

(12) Return of operating surplus to the Crown (3,098)

29,711 Closing Taxpayers’ funds 23,527

Note 14: Related party transactions Key management personnel remuneration

2019 2020 Actual Actual $000 $000

Leadership Team, including General Manager (to 30 April 2019) 1,724 Remuneration - 7 Full time equivalent staff -

Leadership Team, including Chief Executive 135 Remuneration * 1,061 4 Full time equivalent staff 4

There are no other employee benefits. Key management personnel include the Chief Executive and three members of the executive leadership team, 4 FTEs (2019: 7 FTEs). Note from 1 May 2019 the Service underwent a restructure and the executive leadership team was reduced from 7 to 4 FTEs. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 95

The Service is a wholly owned entity of the Crown. between entities and undertaken on the normal terms and conditions for such transactions. Related party disclosures have not been made for transactions with related parties that are: Significant transactions with government-related entities • within a normal supplier or client/recipient The Service has received funding from the Crown of $60m relationship; and (2019: $56m) to provide services to the public, House of Representatives and support services to members. The • on terms and conditions no more or less favourable Service also provides services to other agencies under than those that it is reasonable to expect the Service Service Level Agreements. For the year ended 30 June 2020, would have adopted in dealing with the party at arm’s services were provided to the following agencies: length in the same circumstances. • Office of the Clerk of the House of Representatives Further, transactions with other government agencies (for • Parliamentary Counsel Office example, Government departments and Crown entities) are not disclosed as related party transactions when they are consistent with the normal operating arrangements

Note 15: Financial instruments

15A – Financial instrument categories

The carrying amounts of financial assets and liabilities in each of the financial instrument categories are as follows:

Unaudited 2019 2020 2020 2020 Supp 2021 Actual Actual Main Estimates Forecast Estimates $000 $000 $000 $000 $000

Financial assets measured at amortised costs

Loans and receivables

3,992 Cash and cash equivalents 4,975 2,230 3,256 8,039

13,483 Receivables 11,735 13,381 11,483 11,483 17,475 Total loans and receivables 16,710 15,611 14,739 19,522

Financial liabilities measured at amortised costs

67 Creditors and other payables 146 0 5 5

4,651 Accrued expenses 2,849 133 265 265

4,718 Creditors and other payables 2,995 133 270 270

Note, for a maturity analysis of Receivables and Trade creditors refer to notes 6 and 10. 96 Parliamentary Service Annual Report 2019/2020

15B - Financial instruments risks

The Service is party to financial instrument The Service is only permitted to deposit funds with Westpac arrangements as part of its everyday operations. Banking Corporation (Westpac), a registered bank, and These include instruments such as bank balances, accounts enter into foreign exchange forward contracts with the New receivable, and accounts payable. The fair value of the Zealand Debt Management Office (NZDMO). Service’s financial instruments is the same as the carrying value. The Service does not require any collateral or security to support financial instruments with financial institutions that The Service does not have any gains or losses on its financial it deals with, or with the NZDMO, as these entities have instruments and no impairments have been recognised to high credit ratings. For its other financial instruments, the date. Service does not have significant concentrations of credit risk. The Service is not exposed to any other concentrations All financial assets and liabilities are non-derivative in form of credit risk. and function and are neither available for sale nor held to maturity. Credit facilities The Service does not have bank overdraft facilities as at 30 The fair value of the financial instruments are deemed not June 2020. materially different from valuation at amortised cost. As a result, the carrying value of the instruments is at fair value. Liquidity risk Liquidity risk is the risk that the Service will encounter Credit risk difficulty raising liquid funds to meet commitments as they Credit risk is the risk that a third party will default on its fall due. obligations to the Service, causing the Service to incur a loss. In meeting its liquidity requirements, the Service closely In the normal course of its business, credit risk arises from monitors its forecast cash requirements with expected debtors. The maximum exposure from trade debtors is cash drawdowns from the New Zealand Debt Management the value of the non-Government debtors i.e. $0.6 million Office. The Service maintains a target level of available cash (2019: $0.4 million). Default is considered by management to meet liquidity requirements. to be unlikely and the probable exposure has been determined as negligible. There were no changes in The Service considers that it does not have a significant receivables or payables during the year that can be liquidity risk as it ensures it has adequate working capital attributed to credit risk. coverage at all times.

Note 16: Capital management

The Service’s capital is its equity (or taxpayers’ funds), which compliance with the government budget processes, the comprise general funds. Equity is represented by net assets. Public Finance Act 1989 and Treasury Instructions.

The Service manages its revenues, expenses, assets, The objective of managing the Service’s equity is to ensure liabilities, and general financial dealings prudently. The the Service effectively achieves its goals and objectives for Service’s equity is largely managed as a by-product which it has been established, whilst remaining a going of managing revenue, expenses, assets, liabilities and concern. Te Pūrongo ā-Tau a te Ratonga Pāremata 2019/20 97

Note 17: Post-balance date events

The service signed a lease agreement commencing 1 November 2020 for the TSB building located at 149 Lambton Quay.

Note 18: Explanation of major variances against budget

Statement of comprehensive revenue and expense Statement of financial position During the year the Budget expenditure of $65.3 million Total Assets are lower than Revised Budget by $1.7 million was revised to $64.8 million, a decrease of $0.5 million. The as a result of the following key items: decrease is largely due to a reduction in capital charge and • Cash and cash equivalents are higher than revised lower depreciation as projects have been put on hold and budget due to the timing of Crown revenue draw not capitalised. downs. • Non-current assets comprising of Property, plant The deficit is due to the write-off of Bowen House leasehold and equipment and Intangibles assets: lower than improvements due to the decant of the building being revised budget due to asset write offs caused by the confirmed. Write-offs of $3.434 million were recognised identification of a potential onerous lease, delays in against a new departmental other appropriation “onerous capital projects and the disposal of part of the library lease and asset write-offs”. Excluding the write-off the Service collection. would have had a surplus of $3.098m. That surplus was due to the Service drawing down based on Appropriation as opposed to drawing down what was forecast to be spent.

Note 19: Covid-19

In March 2020, the World Health Organisation designated The pandemic has had the following impacts: COVID-19 to be a pandemic, threatening the health and • Increased credit risk from trade receivables. The well-being of large numbers of people across multiple Service has minimal exposure however future countries. The global outbreak has caused escalating levels economic impacts of business partners will be of societal uncertainty. In response, New Zealand entered considered prior to entering into agreements. a Government-directed ‘Alert Level 4’ lockdown on 25 • Increased Liquidity risk. The Service is secure in March 2020. The Government’s Alert Level system dictated obtaining funding from the Government though future the level of business activity and societal interaction that economic impacts may reduce the capability of the can take place. Service. • Increased Valuation risk. The assets of the Service that may have been impacted include Library collections, IT equipment and intangible software assets – none of which are exposed by the pandemic. 98 Parliamentary Sector Annual Report Financial Statements 30 June 2020 Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 99

Non Departmental Statements and Schedules Ngā tauākī, ngā whakamārama ō-waho tari

For the year ended 30 June 2020

Key to the statements and schedules Ngā Whakamārama ki ngā Taukī Pūtea

Additional information

Judgements and estimates

Notes to the statements

Policies and procedures 100 Parliamentary Sector Annual Report Financial Statements 30 June 2020

Non-departmental statements and schedules for year ended 30 June 2020

The following non-departmental statements and schedules record the revenue, expenses, assets, liabilities, commitments and contingent liabilities that the Service manages on behalf of the Crown.

Schedule of non-departmental revenue for year ended 30 June 2020

Unaudited 2019 2020 2020 2020 Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 - Revenue 31 - - - Total non-departmental revenue 31 - -

Schedule of non-departmental expenses for year ended 30 June 2020 Unaudited 2019 2020 2020 2020 Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 Expenses

Other expenses incurred by the Crown

17,996 Annual 23,496 21,747 26,747

61,595 Other 67,963 65,207 74,463

118 Asset revaluation loss - - -

79,709 Sub total 91,459 86,954 101,210

2,599 GST expensed 2,943 4,000 4,000 82,308 Total non-departmental expenses 94,402 90,954 105,210

The notes to the accounts form part of and are to be read in conjunction with these statements and schedules.

For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2020. Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 101

Schedule of non-departmental capital expenditure for the year ended 30 June 2020

Unaudited 2019 2020 2020 2020 Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 Capital Expenditure

Purchases and development of capital assets by the Crown

3,149 Other 4,095 2,630 12,770 3,149 Total non-departmental capital expenditure 4,095 2,630 12,770

Schedule of non-departmental assets as at 30 June 2020

Unaudited 2019 2020 2020 2020 Actual Actual Main Supp Estimates Estimates $000 Notes $000 $000 $000 Current Assets

3,537 Cash and cash equivalents 2 5,310 9,469 4,141

11 Debtors 2 & 3 25 26 11

349 Prepayments 3 214 15 349 3,897 Total current assets 5,549 9,510 4,501

Non-current assets

643,388 Property, plant and equipment 4 633,722 448,643 635,041 647,285 Total non-departmental assets 639,271 458,153 639,542

The notes to the accounts form part of and are to be read in conjunction with these statements and schedules.

For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2020. 102 Parliamentary Sector Annual Report Financial Statements 30 June 2020

Schedule of non-departmental liabilities and revaluation reserve as at 30 June 2020 Unaudited 2019 2020 2020 2020 Actual Actual Main Supp Estimates Estimates $000 Notes $000 $000 $000 Liabilities

Current liabilities

2,317 Creditors 7 3,330 3,253 2,295

1,289 Employee entitlements 1,698 811 1,364 3,606 Total current liabilities 5,028 4,064 3,659

Revaluation reserve

83,200 Land revaluation reserve 5 83,200 63,000 83,200

379,467 Building revaluation reserve 5 379,725 212,769 379,467

11,410 Antique and art revaluation reserve 5 13,346 11,410 11,410 474,077 Total revaluation reserve 476,271 287,179 474,077

477,683 Total non-departmental liabilities and revaluation reserve 481,299 291,243 477,736

Statement of non-departmental commitments for the year ended 30 June 2020

There are no non-departmental operating commitments (2019: nil).

Capital commitments Capital commitments are the aggregate amount of capital expenditure contracted for the acquisition of property, plant and equipment that has not been paid or recognised as a liability at balance date.

2019 2020 Actual Actual $000 $000

Capital commitments

1,300 Buildings 2,716 1,300 Total capital commitments 2,716

The notes to the accounts form part of and are to be read in conjunction with these statements and schedules.

For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2020. Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 103

Commitments are future expenses and liabilities to commitments that have penalty or exit costs explicit in the be incurred on contracts that have been entered agreement on exercising that option to cancel are reported into as at balance date. Information on non- in the statement of commitments at the lower of the cancellable capital and lease commitments are reported remaining contractual commitment and the value of those in the statement of commitments. Cancellable capital penalty or exit costs (i.e. the minimum future payments).

Statement of non-departmental contingent liabilities and contingent assets for the year ended 30 June 2020

Quantifiable contingent liabilities

2019 2020 Actual Actual $000 $000 Contingent liability 146 Members' superannuation 59 146 Total contingent liability 59

Contingent assets

The Service on behalf of the Crown has no contingent assets (2019: nil).

The notes to the accounts form part of and are to be read in conjunction with these statements and schedules.

For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2020. 104 Parliamentary Sector Annual Report Financial Statements 30 June 2020

Notes to the non-departmental statements and schedules

Note 1: Statement of accounting policies

Reporting entity Significant accounting policies These non-departmental schedules and statements Significant accounting policies are included in the notes to present financial information on public funds managed which they relate. by the Service on behalf of the Crown. Further details of the department’s management of these Crown assets Goods and Services Tax and liabilities are provided in the output performance All items in the statements, including appropriation sections of this report. These non-department balances statements, are stated exclusive of Goods and Services are consolidated into the Financial Statements of the Tax (GST), except for receivables and payables, which are Government for the year ended 30 June 2020. stated on a GST-inclusive basis. In accordance with Treasury Instructions, GST is returned on revenue received on behalf For a full understanding of the Crown’s financial position, of the Crown, where applicable. However, an input tax results of operations and cash flows for the year, refer to deduction is not claimed on non-departmental expenditure. the Financial Statements of the Government. Instead, the amount of GST applicable to non-departmental expenditure is recognised as a separate expense and Basis of preparation eliminated against GST revenue on consolidation of the The statements have been prepared on a historical cost Financial Statements of the Government. basis, modified by the revaluation of certain property, plant and equipment. Critical accounting estimates The estimates and assumptions that have a significant risk The non-departmental schedules and statements have of causing a material misstatement to the carrying amounts been prepared in accordance with the accounting policies of assets and liabilities within the next financial year are of the Financial Statements of the Government, Treasury referred to overleaf. Instructions, and Treasury Circulars.

Measurement and recognition rules applied in the preparation of these non-departmental schedules and statements are consistent with New Zealand Generally Accepted Accounting Practice (Tier 1 Public Sector Public Benefit Entity Accounting Standards) as appropriate for public benefit entities. Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 105

Note 2: Financial instruments

2A – Financial instrument categories The carrying amounts of financial assets and liabilities in each of the financial instrument categories are as follows:

2019 2020 Actual Actual $000 $000

Cash and debtors

3,537 Cash and cash equivalents 5,310

11 Debtors 25 3,548 Total cash and debtors 5,335

Financial liabilities measured at amortised cost

841 Creditors 1,002

1,476 Accrued expenses 2,328 2,317 Creditors and other payables 3,330

Note, for a maturity analysis of Debtors and Creditors refer to notes 3 and 7.

The Crown does not have any gains or losses on its financial The Service is permitted to deposit funds only with Westpac, instruments and no impairments have been recognised to a registered bank. The Service is not required to provide date. The fair value of the financial instruments is deemed any collateral or security to support financial instruments not materially different from valuation at amortised cost. As with financial institutions that it deals with, as this entity has a result, the carrying value of the instruments is at fair value. high credit ratings. For its other financial instruments, the Service does not have significant concentrations of credit 2B – Financial instrument risks risk. The Service is party to financial instrument arrangements as part of its everyday operations. These include instruments The Service is not exposed to any other concentrations of such as bank balances, accounts receivable and accounts risk. payable. The fair value of the Service’s financial instruments is the same as the carrying value. Credit facilities The Service does not have bank overdraft facilities as at 30 The Service does not have any gains or losses on its financial June 2020. instruments and no impairments have been recognised to date. All financial assets and liabilities are non-derivative in Liquidity risk form and function and are neither available for sale nor held Liquidity risk is the risk that the Service will encounter to maturity. The fair value of the financial instruments is difficulty raising funds to meet commitments as they fall deemed not materially different from valuation at amortised due. In meeting its liquidity requirements, the Service cost. As a result, the carrying value of the instruments is at closely monitors its forecast cash requirements with fair value. expected cash drawdowns from the NZDMO. The Service maintains a target level of available cash to meet liquidity Credit risk requirements. The Service considers that it does not have a Credit risk is the risk that a third party will default on its significant liquidity risk as it ensures it has adequate working obligations to the Service, causing the Service to incur a loss. capital coverage at all times. In the normal course of its business, the Service’s credit risk arises from debtors however there is no exposure from Exposure to risk non-Government debtors in trade debtors this year (2019: The Service is not aware of any exposure to risk regarding nil). There were no changes in receivables or payables financial instruments that would have a significant impact during the year that can be attributed to credit risk. on operations. 106 Parliamentary Sector Annual Report Financial Statements 30 June 2020

Note 3: Debtors and prepayments

2019 2020 Actual Actual $000 $000 Debtors and prepayments - exchange transactions 11 Debtors 25 349 Prepayments 214 360 Total debtors and prepayments - exchange transactions 239

2019 2020 Actual Actual $000 $000 9 Not past due 23 - Past due 1-30 days 2 2 Past due over 30 days - 11 Total 25

Debtors are initially recorded at fair value and amount of the loss is recognised in the schedule of non- are subsequently measured at amortised cost departmental expenses. When a debtor is uncollectable, using the effective method less any provision it is written off against the allowance account for debtors. for impairment. A provision for impairment of debtors is Overdue debtors that are renegotiated are reclassified as established when there is evidence that the Service will not current (i.e. not past due). be able to collect all amounts due according to the original terms. The amount of the impairment is the difference Significant financial difficulties of the debtor, probability between the asset’s carrying amount and the present value that the debtor will enter into bankruptcy, and default in of estimated future cash flows, discounted using the original payments are considered indicators that the debtor is likely effective interest rate. The carrying amount of the asset is to be impaired. reduced through the use of an allowance account, and the

Note 4: Property plant and equipment

Cost or valuation Land Buildings Furniture Plant and Antiques Library Work in Total equipment and art collection progress all units $000’s collection Balance at 1 July 2018 100,000 355,727 13,856 7,182 16,414 352 2,326 495,857 Additions - 12 - - - - 3,137 3,149 Transfers from work in progress - 2,062 105 1,849 - - (4,016) - Adjustments - 6,370 (144) (6,226) - - - -

Revaluation increase/(decrease) 20,200 138,718 - - - (118) - 158,800

Balance at 30 June 2019 120,200 502,889 13,817 2,805 16,414 234 1,447 657,806

Balance at 1 July 2019 120,200 502,889 13,817 2,805 16,414 234 1,447 657,806 Additions - 8 - (8) 14 - 4,082 4,096 Transfers from work in progress - 1,252 13 358 - - (1,623) - Adjustments ------(2) (2) Revaluation increase/(decrease) * - - - - 1,936 - - 1,936 Disposals - (1,017) - - - - - (1,017) Balance at 30 June 2020 120,200 503,132 13,830 3,155 18,364 234 3,904 662,819

* The Art collection has been valued by Dunbar Sloane as at June 2020. Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 107

Accumulated depreciation Land Buildings Furniture Plant and Antiques Library Work in Total and impairment losses equipment and art collection Progress collection all units $000’s Balance at 1 July 2018 - (17,627) (13,553) (1,476) - - - (32,656)

Depreciation expense - (9,038) (40) (664) - - - (9,742)

Adjustments - (385) 2 382 - - - (1)

Eliminated on revaluation - 26,667 43 1,271 - - - 27,981

Balance at 30 June 2019 - (383) (13,548) (487) - - - (14,418)

Balance at 1 July 2019 - (383) (13,548) (487) - - - (14,418) Depreciation expense - (14,488) (49) (205) - - - (14,742) Adjustments - - (1) (1) - - - (2) Impairment Losses - (952) - - - - - (952) Eliminated on disposal - 1,017 - - - - - 1,017 Balance at 30 June 2020 - (14,806) (13,598) (693) - - - (29,097)

Carrying amounts At 30 June 2018 100,000 338,100 303 5,706 16,414 352 2,326 463,201 At 30 June 2019 120,200 502,506 269 2,318 16,414 234 1,447 643,388 At 30 June 2020 120,200 488,326 232 2,462 18,364 234 3,904 633,722

Property, plant and equipment the asset. Revaluation is based on the fair value of the asset Property, plant and equipment consists of the with changes reported by class of asset. following classes of assets: Land, buildings, furniture, plant and equipment, antiques and art, and Classes of property, plant and equipment that are revalued library collections. are revalued at least every three years or whenever the carrying amount differs materially to fair value. Unrealised The initial cost of property, plant and equipment is the value gains and losses arising from changes in the value of of the consideration given to acquire or create the asset property, plant and equipment are recognised as at balance and any directly attributable costs of bringing the asset to date and are debited or credited to the Revaluation Reserve. working condition for its intended use. Accumulated depreciation at revaluation date is eliminated All property, plant and equipment costing more than $5,000 against the gross carrying amount so that the carrying are capitalised and recorded at historical cost. amount after revaluation equals the revalued amount.

Capital work in progress Land and buildings are valued on a three-yearly basis by Capital work in progress is not depreciated. The total cost independent registered valuers to ensure that the carrying of this work is transferred to the relevant asset category on amounts do not differ materially from the assets’ fair value. its completion. Land is valued at current market value, with reference to its highest and best use, subject to its current zoning and Depreciation heritage designation. Buildings are valued at depreciated Depreciation of property, plant and equipment is provided replacement cost less allowance for physical deterioration, on a straight-line basis to allocate the cost of assets, less optimisation and relevant surplus capacity. The most recent any estimated residual value, over their useful lives. valuation of land and buildings was undertaken as at 30 June 2020. Valuation Revaluations are carried out for a number of classes The carrying values of revalued assets are internally of property, plant and equipment to reflect the service assessed by the Service on an annual basis to ensure that potential or economic benefit obtained through control of they do not differ materially from the assets’ fair values. 108 Parliamentary Sector Annual Report Financial Statements 30 June 2020

If there is a material difference, then the off-cycle asset be recoverable. An impairment loss is recognised for the classes are revalued. Additions between revaluations are amount by which the asset’s carrying amount exceeds its recorded at cost. recoverable amount.

The antique and art collections are valued at fair market The recoverable amount is the higher of an asset’s fair value value on a three-yearly basis by independent registered less costs to sell and its value in use. valuers. The last valuation was undertaken as at 12 June 2020. Value in use is the depreciated replacement cost for an asset where the future economic benefits or service The Library collections are valued at fair market value on a potential of the asset are not primarily dependent on the three-yearly basis by independent registered valuers. The asset’s ability to generate net cash inflows and where the last valuation was completed as at 30 June 2019. The Library Service would, if deprived of the asset, replace its remaining collection consists of numerous low value items which have future economic benefits or service potential. been reclassified for June 2020. Future revaluations will continue for items that meet our capitalisation threshold. If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount Additions is written down to the recoverable amount. For revalued In most instances, an item of property, plant and equipment assets, the impairment loss is recognised against the is initially recorded at its cost. Where an asset is acquired revaluation reserve for that class of asset. Where that through a non-exchange transaction, it is recognised at its results in a debit balance in the revaluation reserve, the fair value as at the date of acquisition. balance is recognised in the surplus or deficit.

Disposals For assets not carried at a revalued amount, the total Gains and losses on disposals are determined by comparing impairment loss is recognised in the surplus or deficit. the proceeds with the carrying amount of the asset. Gains and losses on disposal are included in the schedule of The reversal of an impairment loss on a revalued asset revenue and expenses. When revalued assets are sold, the is credited to the revaluation reserve. However, to the amounts included in asset revaluation reserves in respect extent that an impairment loss for that class of asset was of those assets are transferred to the schedule of non- previously recognised in the surplus or deficit, a reversal departmental liabilities and revaluation reserve. of the impairment loss is also recognised in the surplus or deficit. Impairment of property, plant, and equipment Property, plant and equipment that have a finite useful life For assets not carried at a revalued amount, the reversal of are reviewed for impairment whenever events or changes an impairment loss is recognised in the surplus or deficit. in circumstances indicate that the carrying amount may not

The estimated economic useful lives and associated depreciation rates of major classes of assets are:

Furniture 15 years

Antiques and art collection Not depreciated

Buildings 3 - 100 years

Plant and equipment 3 - 20 years

Land Not depreciated

Library collection – rare & valuable Not depreciated Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 109

Note 5: Revalued assets

Revalued assets – land and buildings and scale and the absence of any directly comparable sales Land and buildings were valued as at 30 June 2019 by of similar properties. registered valuer, Darroch Limited. Antique and art collections The asset valuation was completed in accordance with: Antique and art collections were assessed at fair value as at • Public Benefit Entity International Public Sector 12 June 2020 by Dunbar Sloane Limited. Accounting Standard 17: Property, Plant and Library Equipment (PBE IPSAS 17) Library collections were valued by independent expert • International Valuation Standards (IVS) and Property valuer Ashley and Associates as at 30 June 2019. Institute of New Zealand (PINZ) standards

The land has been assessed at market value at its highest The Library collection valuation was completed in and best use, subject to its current zoning and heritage accordance with: designation. In assessing the market value, land sales within • PBE IPSAS 17. the general area have been considered as a starting point. • Uniform Standards of Professional Appraisal Practice The parliamentary site comprises a large land area, and (USPAP). hence adjustments have been made for location and size. • International Valuation Standards Council (IVSC). The basis for the fair value assessment for the buildings is Ashley and Associates assessed High-Value Books depreciated replacement cost less allowance for physical individually. They conducted and compared to catalogue deterioration, optimisation and relevant surplus capacity, records for auction sales and consulted with dealers in the as required by PBE IPSAS 17 for specialised assets. The subject property to determine fair market value. buildings are considered specialised assets due to their size

Note 6: Assets held for sale and impairment

The Crown does not have any items of property, plant and equipment classified as held for sale or impairment.

There are no restrictions on title and no assets pledged as security for liabilities.

Note 7: Creditors

2019 2020 Actual Actual $000 $000 Creditors under exchange transactions 841 Creditors 1,002 1,476 Accrued expenses 2,328 2,317 Total creditors - exchange transactions 3,330

2019 2020 Actual Actual $000 $000 841 Not past due 1,002 - Past due 1-30 days - - Past due over 30 days - 841 Total 1,002 110 Parliamentary Sector Annual Report Financial Statements 30 June 2020

Note 8: Related party transactions

Related party disclosures have not been made for other government agencies (for example, Government transactions with related parties that are within a departments and Crown entities) are not disclosed as normal supplier or client/recipient relationship on related party transactions when they are consistent with terms and conditions no more or less favourable than normal operating arrangements between government those that it is reasonable to expect the Service would agencies and undertaken on normal terms and conditions have adopted in dealing with the party at arm’s length for such transactions. in the same circumstances. Further, transactions with

Note 9: Post-balance date events There were no significant events after balance date (2019: nil).

Note 10: Covid-19 In March 2020, the World Health Organisation designated COVID-19 to be a pandemic, threatening the health and well- being of large numbers of people across multiple countries. The global outbreak has caused escalating levels of societal uncertainty. In response, New Zealand entered a Government-directed ‘Alert Level 4’ lockdown on 25 March 2020. The Government’s Alert Level system dictated the level of business activity and societal interaction that can take place.

The pandemic has had the following impacts: • Increased credit risk from trade receivables. There has been minimal exposure however future economic impacts of business partners will be considered prior to entering into agreements. • Increased Liquidity risk. Funding from the Government is generally stable though future economic impacts may reduce our capability. • Increased Valuation risk. The assets of the Crown that may have been impacted include land and buildings, the Library collection, and the Antique and Art collection - none of which are exposed by the pandemic. • Operational. As a result of domestic and international flights being cancelled there has been a significant decrease in expenditure for some appropriations.

Non-departmental appropriation statements

Statement of expenses and capital expenditure incurred without, or in excess of, appropriation or other authority for the year ended 30 June 2020

Parliamentary Service Crown did not incur any unappropriated operating or capital expenditure during 2020 (2019: nil). Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 111

Statement of budgeted and non-departmental actual expenses and capital expenditure incurred against appropriations for the year ended 30 June 2020

Unaudited 2019 2020 2020 2020 Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000

Appropriations for non-departmental expenses to be incurred by the Crown1

9,742 Depreciation expense on parliamentary complex 4 15,694 12,000 17,000

208 Member Support - Independent 299 299 299

2,729 Members' communications 2,974 3,348 3,348

1,067 Travel of former MPs 667 1,300 1,300

4,250 Travel of members and others 3,861 4,800 4,800

17,996 Annual appropriations 23,495 21,747 26,747

19,850 Members of the House of Representatives' salaries and allowances 20,291 22,000 22,000

2,992 Accommodation of members and travel of members' families 2,991 3,200 3,200

22,842 Appropriations under PLA 23,282 25,200 25,200

40,838 Total non-departmental expense appropriation 46,777 46,947 51,947

1 These appropriations are exempt from end-of-year performance information under s15D(2)(b)(ii) of the Public Finance Act 1989. 112 Parliamentary Sector Annual Report Financial Statements 30 June 2020

Multi-year appropriations – for other expenses to be incurred by the Crown

The Service has multi-year appropriations (MYAs) for other and support services to members, and, during the immediate expenses to be incurred by the Crown for parties to support post-election period, qualifying electoral candidates and their parliamentary operations during the 52nd Parliament. former members, as allowed under directions given by the This includes Leaders’ offices, support staff, research Speaker. The 52nd Parliament appropriations commenced operations, Whips office, communications, administrative on 1 October 2017 and will expire on 30 September 2020.

Unaudited 2019 2020 2020 2020 Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000

Multi-year appropriations for other expenses to be incurred by the Crown*

3 Additional support for members 19 300 816

481 Party and member support ACT 608 513 640

1,917 Party and member support Green 2,199 1,874 2,239

14,292 Party and member support Labour 16,588 14,308 17,282

20,311 Party and member support National 23,197 20,990 25,440

1,749 Party and member support NZ First 2,071 2,022 2,846 38,753 Total multi-year expense appropriation 44,682 40,007 49,263

*These appropriations have an exemption from year-end performance reporting under s15D(2)(b)(ii) of the Public Finance Act 1989. Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 113

Details of multi-year appropriations - for other expenses to be incurred by the Crown

Party and Additional Party and Party and Party and Party and Party and Party and Member Support Member Member Member Member Member Member Support to Support Support Support Support Support Support United 52nd Parliament MYAs $000 Members ACT Green Labour Māori National NZ First Future Appropriations

Original appropriations 900 1,116 12,773 38,973 2,307 56,445 11,605 1,116

2019/20 adjustments - - - 587 - (846) - - Cumulative adjustments from previous - 437 (6,993) 3,772 (2,307) 8,620 (5,399) (1,116) year(s) Total adjusted appropriations as at 30 900 1,553 5,780 43,332 - 64,219 6,206 - June 2020

Expenditure

Cumulative expenditure from previous 9 777 2,963 22,089 - 32,989 2,768 - year(s) 2019/20 actual expenditure* 19 608 2,199 16,588 - 23,196 2,071 - Cumulative actual expenditure as at 30 28 1,385 5,162 38,677 - 56,185 4,839 - June 2020

Appropriations remaining as at 30 June 872 168 618 4,655 - 8,034 1,367 - 2020

*Approved appropriations (2020 Supple- 816 640 2,239 17,282 - 25,440 2,846 - mentary Estimates)

Party and Party and Party and Party and Party and Party and Party and Member Additional Member Member Member Member Member Member Support Support to Support Support Support Support Support Support United 51st Parliament MYAs $000 Members ACT Green Labour Māori National NZ First Future Appropriations

Original appropriations 900 1,116 12,773 38,973 2,307 56,445 11,605 1,116

2018/19 adjustments - - - 587 - (846) - - Cumulative adjustments from previous - 437 (6,993) 3,772 (2,307) 8,620 (5,399) (1,116) year(s) Total adjusted appropriations as at 30 June 900 1,553 5,780 43,332 - 64,219 6,206 - 2019

Expenditure

Cumulative expenditure from previous 6 296 1,046 7,797 - 12,678 1,019 - year(s) 2018/19 actual expenditure* 3 481 1,917 14,292 - 20,311 1,749 - Cumulative actual expenditure as at 30 9 777 2,963 22,089 - 32,989 2,768 - June 2019

Appropriations remaining as at 891 776 2,817 21,243 - 31,230 3,438 - 30 June 2018

*Approved appropriations (2019 519 608 2,282 17,261 - 24,749 2,573 - Supplementary Estimates)

*The multi-year appropriation terms are in line with the Parliamentary term 1 October 2017 to 30 September 2020. These appropriations are exempt from end-of-year performance information reporting under s15D(2)(b)(ii) of the Public Finance Act 1989. 114 Parliamentary Sector Annual Report Financial Statements 30 June 2020

Multi-year appropriations – Crown asset management

The Service has a multi-year appropriation for capital expenses to be incurred by the Crown for capital works within the Parliamentary complex. This is to carry out essential maintenance and minor capital improvements. The appropriation commenced on 1 July 2016 and expires on 30 June 2020. A new multi-year appropriation for capital expenses has been created which commences 1 July 2020 and expires on 30 June 2024.

Future Capital Asset Accommodation Capital Expenditure Management Strategy

Original appropriations 17,012 4,232 Cumulative adjustments from previous year(s) 6,204 - 2019/20 adjustments (494) - Total adjusted appropriations as at 30 June 2020 22,722 4,232

Expenditure Cumulative expenditure from previous year(s) 12,069 - 2019/20 actual expenditure* 3,587 508 Cumulative actual expenditure as at 30 June 2020 15,656 508

Appropriations remaining as at 30 June 2020 7,066 3,724

*Approved appropriations (2020 Supplementary Estimates) 10,654 2,116

Future Capital Asset Accommodation Capital Expenditure Management Strategy Appropriations Original appropriations 17,012 - Cumulative adjustments from previous year(s) (1,076) - 2018/19 adjustments 582 - Total adjusted appropriations as at 30 June 2019 16,518 -

Expenditure Cumulative expenditure from previous year(s) 8,920 - 2018/19 actual expenditure* 3,149 - Cumulative actual expenditure as at 30 June 2019 12,069 -

Appropriations remaining as at 30 June 2019 4,449 -

*Approved appropriations (2020 Supplementary Estimates) 4,968 -

**This appropriation has an exemption from year end performance reporting under s15D(2)(b)(ii) of the Public Finance Act 1989. Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 115

Schedule of expenditure on travel entitlements of former members and their spouse or partner

Section 42 of the Members of Parliament (Remuneration and Services) Act 2013 requires the Crown to report on expenses for travel entitlements of former members and their spouse or partner. The details required by this section are shown in the table below. This information includes travel which commenced prior to 30 June 2020 for which reimbursement requests were received by 31 July 2020. Claims received after this date will be disclosed in the 2020/21 Annual Report. Former Members of Parliament travel has been affected by COVID-19, there has been less travel undertaken as a result due to cancelled flights and the country being in lockdown.

Name of Total Expenses Total expenses Total expenses incurred Total Former Member incurred for incurred for for Rail, Road and Ferry International Air Travel Domestic Air Travel Travel Hon Dame Margaret Ann Hercus 388 388 Rt Hon Sir Simon William (Bill) English 3,510 3,510 Hon Christopher Carter 823 6,298 7,121 Hon Dr Clive Matthewson 2,013 1,034 3,047 Dail Jones 764 764 Hon David Caygill 1,096 657 1,753 Hon Denis Marshall 909 909 Hon Derek Quigley 981 1,582 2,563 Rt Hon Sir Donald McKinnon 2,093 3,109 5,202 Hon George Hawkins 1,060 1,060 Graham Kelly 1835 2479 4,314 Hon Harry Duynhoven 432 432 Ian McLean 408 6,358 6,766 Hon James Sutton 1,240 1,635 2,876 Hon John Banks 1,427 1,717 3,145 Hon John Carter 3,419 168 3,588 John Terris 2,586 2,586 Marilyn (Joy) Quigley 186 3,068 3,253 Hon Kenneth Shirley 1,059 8,834 9,893 Hon Sir Thomas (Kerry) Burke 1,520 1,255 44 2,819 Patricia (Elizabeth) Tennet 203 785 82 1,070 Rt Hon Dr Sir Alexander (Lockwood) Smith 765 557 1,322 Hon Margaret Austin 1,264 279 127 1,670 Dr Marilyn Waring 123 626 749 Hon Richard (Mark) Burton 811 8,591 9,401 Mark Peck 471 471 Hon Matthew Robson 227 365 592 Hon Maxwell Bradford 241 354 595 Hon Dr Michael Bassett 427 2,714 3,142 Hon Dr Sir Michael Cullen 10,118 10,118 Hon Murray McCully 1,562 2,444 4,005 Rt Hon Paul East 1,003 1,052 2,055 116 Parliamentary Sector Annual Report Financial Statements 30 June 2020

Name of Total Expenses Total expenses Total expenses incurred Total Former Member incurred for incurred for for Rail, Road and Ferry International Air Travel Domestic Air Travel Travel Hon Paul Desmond Swain 2,563 2,563 Hon Peter Hodgson 3,618 849 4,467 Hon Peter Dunne 2,318 2,318 Hon Peter Gresham 315 315 Hon Philip Burdon 5,073 629 5,702 Hon Phillida Bunkle 1,175 1,527 2,702 Hon Richard Prebble 1,470 590 2,060 Hon Richard Barker 1,927 7,028 8,955 Robert (Douglas) Woolerton 979 979 Hon Sir Roger Douglas 4,455 4,455 Hon Roger Maxwell 2,013 1,882 3,895 Alan Ross Meurant 435 1,683 2,118 Harold (Ross) Robertson 1,114 9,022 10,137 Hon Cedric (Russell) Marshall 771 771 Hon Sandra Lee-Vercoe 234 234 Hon Stanley Rodger 674 2,899 3,573 Timothy Barnett 295 4,205 4,500 Hon Anthony Friedlander 473 1,310 1,782 Hon Anthony Ryall 1,115 7,406 8,521 Hon Warren Ernest Cooper 278 7,367 7,645 Warren Kyd 543 543 Rt Hon Sir William Birch 582 582 Rt Hon Wyatt Creech 198 8,293 8,491 Hon Maurice McTigue 417 2,781 3,198 Hon Graeme Lee 340 340 55,477 135,772 775 192,025

Claims relating to prior year travel

Hon Derek Quigley 2,478 2,478

Rt Hon Sir Donald McKinnon 326 326

Hon Sir James McLay 108 108

Hon John Banks 485 485

Hon Murray (John) Luxton 758 7684 8,442

Hon Judith Tizard 1,980 1,980

Hon Matthew Robson 642 642

Warren Kyd 10,526 10,526

Rt Hon Sir William Birch 8,754 8,754 3,657 30,084 33,741 Pūrongo ā-Tau o te Rāngai Pāremata 2019/20 117

Name of Spouse/ Name of Total expenses Total expenses Total expenses Total Partner/Surviving former member incurred for incurred for incurred for Spouse of former International Domestic Air Rail, Road and member Air Travel Travel Ferry Travel Hon Dame Margaret Ann John Hercus 265 265 Hercus Dr Lady Mary English Rt Hon Sir Simon William (Bill) English 2,607 2,607 Vanessa Neeson Brian Neeson 1,038 1,038 Peter Kaiser Hon Christopher Carter 748 6,298 7,046 Elaine Jones Dail Jones 764 764 Eileen Caygill Hon David Caygill 1,096 657 1,753 Margaret Pope Rt Hon David Lange 1,573 1,573 Elizabeth McAffer Hon Derek Quigley 516 2,786 3,303 Lady Clare Delore Rt Hon Sir Donald McKinnon 382 382 Lady Jane Kidd Hon Sir Douglas Kidd 10,118 10,118 Noeline Coleman Hon Fraser Colman 4,000 2,239 30 6,269 Janice Hawkins Hon George Hawkins 1,060 1,060 Margaret Duynhoven Hon Harry Duynhoven 1,545 1,545 Warren Pettis Marjorie Jill Pettis 211 211 Carole Anderton Hon James Anderton 1,815 519 2,334 Mary Gerard Richard James Gerard 595 595 Patricia Ranstead Hon James Sutton 1,635 1,635 Leoni Carter Hon John Carter 2,813 168 2,981 Katherine Hawley John Terris 1,178 1,178 John Hunt Marilyn (Joy) Quigley 165 3,068 3,233 Michael Cox Hon Katherine O'Regan 2,166 2,166 Jenny Shirley Hon Kenneth Shirley 1,059 8,929 9,988 Verna Budger Larry Walter Sutherland 784 784 John Galvin Patricia (Elizabeth) Tennet 297 755 54 1,106 Lady Alexandra Smith Rt Hon Dr Sir Alexander 1,190 557 1,747 (Lockwood) Smith Carol Burton Hon Richard (Mark) Burton 811 8591 9,401 Margaret Peck Mark Peck 432 432 Petronella Townshend Hon Matthew Robson 227 227 Raewyn Williamson Hon Maurice Williamson 10,118 10,118 Rosemary Bradford Hon Maxwell Bradford 757 332 210 1,299 Judith Bassett Hon Dr Michael Bassett 427 2,714 3,142 Lowson Collins Hon Dr Sir Michael Cullen 10,118 10,118 Laurie Andersen Hon Murray McCully 1,562 1,562 Nan Mckenzie Hon Noel Scott 1,017 1,017 Sammy Wong Hon Pansy Wong 3,209 3,209 Marilyn East Rt Hon Paul East 419 595 1,014 Toni Reeves-Swain Hon Paul Desmond Swain 2,563 2,563 Anne Marris Hon Peter Hodgson 4,199 1,526 5,725 Jennifer Mackrell Hon Peter Dunne 3,649 3,649 118 Parliamentary Sector Annual Report Financial Statements 30 June 2020

Name of Spouse/ Name of Total expenses Total expenses Total expenses Total Partner/Surviving former member incurred for incurred for incurred for Spouse of former International Domestic Air Rail, Road and member Air Travel Travel Ferry Travel Margot Gresham Hon Peter Gresham 315 315 Anna McCardle Hon Peter McCardle 243 243 Rosalind Burdon Hon Philip Burdon 2,538 629 3,167 John Lepper Hon Phillida Bunkle 643 643 Robyn Northey Richard Northey 4,696 4,696 Lorraine Storey Hon William (Robson) Storey 809 809 Beverly Woolerton Robert (Douglas) Woolerton 979 979 Nicola Shirlaw Rodney David Donald 295 498 793 Lady Glennis Douglas Hon Sir Roger Douglas 1,422 1,422 Tui Maxwell Hon Roger Maxwell 2,013 1,882 3,895 Barbara Bailey Hon Ronald Leslie Bailey 169 2,858 3,027 Grace Robertson Harold (Ross) Robertson 648 9,112 9,760 Barbara Marshall Hon Cedric (Russell) Marshall 1,018 1,018 Anne Rodger Hon Stanley Rodger 1,255 2,899 4,154 Ramon Maniapoto Timothy Barnett 903 451 1,353 Pamela Friedlander Hon Anthony Friedlander 192 1,310 1,502 Kara Ryall Hon Anthony Ryall 886 7,406 8,292 Lorraine Cooper Hon Warren Ernest Cooper 278 7,367 7,645 Dianne Kyd Warren Kyd 543 543 Diana Creech Rt Hon Wyatt Creech 553 1,182 1,735 Barbara McTigue Hon Maurice McTigue 505 3,364 3,869 Daphne Lee Hon Graeme Lee 340 340 Ngahuia Wade Hon Richard Prebble 590 590 47,270 132,218 462 179,950

Claims relating to prior year travel Elizabeth McAffer Hon Derek Quigley 2,186 2,186 Peter Davis Rt Hon Helen Elizabeth Clark 2,709 2,709 Mary Scholtens Hon Murray (John) Luxton 268 4,038 4,306 Patrick Shields Margaret Shields 5,652 5,652 Petronella Townshend Hon Matthew Robson 869 869 Nan Mckenzie Hon Noel Scott 357 357 Kara Ryall Hon Anthony Ryall 194 194 Dianne Kyd Warren Kyd 10,526 10,526 819 25,980 - 26,799

Subtotal of Former Members 59,134 165,856 775 225,765

Subtotal of spouse/partner of former members 48,089 158,198 462 206,748

Fringe Benefit Taxes 234,909

Total 667,423 Appendix A Tāpiritanga A

STRATEGY CANVAS Parliamentary Service August 2020

Vision: The best people supporting the best Parliament in the world Greatest challenge: Each year, more citizens will engage with Parliament and their elected members

Top performance challenges Parliament Sector Objectives Values (what we live by at work) 1. All recommendations from the 1. Embed a customer-centric service Francis review are implemented. The culture INTEGRITY culture of Parliament is amazing! 2. Improve parliamentary effectiveness 2. We are a high-performing, through the provision of quality MANAAKITANGA responsive and pragmatic advice ACCOUNTABILITY organisation, delivering excellent 3. Create a diverse, inclusive, and safe services to support Parliament. Parliament WHANAUNGATANGA 3. Staff engagement is in the top 4. Our staff feel connected to EMPOWERMENT quartile of state sector organisations. Parliament 4. Our customers rate our service 5. Our technology enables Parliament highly. to function 5. Office of the Clerk and Parliamentary 6. Our Parliament is your parliament Principles Service work together seamlessly as (what we believe in as an organisation) one Parliament Sector. 6. Information on members’ 1. We are here to support Parliament. If entitlements and services are Key customers Key partners we do not do it, no one will. accessible and easy to understand. • MPs • OOC 2. We are a small organisation which needs to be pragmatic and nimble. We • MP support staff • DIA do not overthink or over-engineer. • OOC • Party Whips Core work 3. We work in a fast-paced environment. • Ministers • PCO We act in accordance with that Services to members • Public • DPMC environment. • Employment of member support • Staff 4. We care for, trust, and value our staff • Electorate and community • PCO people, no matter their role or office administration & security • location. • DPMC Research and information services • DIA 5. We are here to provide great service • Health, safety, & wellbeing to members, stakeholders, the public services • Travel services • Funding and ourselves. administration and accounting services Resources/drivers 6. We make Parliament accessible for • Information communications and We add value to the functions of everyone to have a say. technology (ICT) services • Payroll and Parliament through our: 7. We find ways to make Parliament human resource services better. • Care Services to the parliamentary 8. We are here to advise members, not • People to police them. precinct • Communication • Facilities and building management • Knowledge of the parliamentary • Security and emergency response environment coordination • ICT services • Catering • Reception services • Education and • Capabilities Engagement • Tours • Messenger • Relationships and mail services