Annual Report 2017AnnualAnnual - 2018Annual Report Report Report 201720172017 - - 2018 2018 - 2018 Parliamentary Service ParliamentaryParliamentaryParliamentary Service Service Service 2018/10/03 10:58:47 1 Front Sheet 67134_Consult Ongee_ PS Annual Report PUR Bound CONSULT Presented to the House of Representatives pursuant to section 44 (1) of the Public Finance Act 1989.
ISSN 2324-2868 (Print) ISSN 2324-2876 (Online)
2018/10/03 10:58:47 Copyright 1
Except for images with existing copyright and the Parliamentary Service Back logo, this copyright work is licensed under the Creative Commons Attribution 4.0 International licence. In essence, you are free to copy, Sheet distribute and adapt the work, as long as you attribute the work to the Parliamentary Service and abide by other licence terms. To view a copy of this licence, visit https://creativecommons.org/licenses/by/4.0/
Note: the use of any Parliamentary logo [by any person or organisation outside of the New Zealand Parliament] is contrary to law. 67134_Consult Ongee_ PS Annual Report PUR Bound CONSULT 3
Contents
5 Foreword: Speaker of the House of Representatives 6 David Stevenson: General Manager of the Parliamentary Service 8 About us 8 Our risk management approach 9 Our year at a glance 11 Our highlights 12 Outcome: The House of Representatives and members receive high quality services 14 Outcome: An accessible Parliament 17 Our people 21 Our workforce 25 Our performance 26 Measuring our performance 31 Statement of responsibility 32 Independent Auditor's Report 37 Parliamentary Service Financial Statements 47 Appropriation statements 65 Financial Statements Parliamentary Service Crown 4 Annual Report 2016 - 2017 5
Foreword: Speaker of the House of Representatives
It has been an interesting We are continuing our work to make Parliament a more and busy year for the Service, family friendly and inclusive place. I recently announced especially given the extra plans for a children’s playground on the smaller front lawn of demands caused by a change Parliament, and opening the facilities of Parliament such as in Government. I appreciate the Copperfield’s to the public on non-sitting days. work of the Service in helping to assist with the transition of staff, The New Zealand Parliament is truly a vital democratic members and offices, including institution and is supported by the Service to carry out its my own office. essential functions.
The Service continues to work closely with members to understand their needs, and how these continue to evolve as the demands on our members change. Further changes will flow from the recommendations of the Appropriations Review Committee. The Rt Hon Trevor Mallard The Service will support members as they carry out their Speaker of the House of Representatives roles as elected representatives serving their communities and our democracy in New Zealand. 28 September 2018 6 Annual Report 2017 - 2018
David Stevenson: General Manager of the Parliamentary Service
It’s with great pride that I present the Parliamentary Service Annual Report for 2017/18.
With the general election, and the transition to a new We’re moving towards effortless service design Parliament, the Parliamentary Service (the Service) has had Our Customer Experience Programme brings together a dynamic year, and our staff have worked incredibly hard to suggestions that members made through two surveys — get the new and returning members up and running for the the post-election independent quality assurance (IQA), and 52nd Parliament. the Litmus survey — along with findings from the follow-up Performance Improvement Framework (PIF) review.
Welcoming members to the 52nd Parliament The Customer Experience Programme is a multi-year plan The Service welcomed new members to the 52nd Parliament to improve our service delivery, and move to an effortless at our expo-style hub, Te Pito. service design and delivery.
At Te Pito new members were given a personalised induction, Learning & Development Calendar for leaders and staff and connected with the resources, support, and information The Service is supporting our leaders to coach and build they need for the parliamentary term. their teams through a leadership development programme. A working group designed and developed the programme The needs of returning members are different because after discussions with leaders of other organisations. they are familiar with the parliamentary environment. We acknowledged this by letting all members know about the For our Member Support and Corporate staff we ran a changes to the Speaker’s Directions for the 52nd Parliament range of courses throughout the year for their personal before the general election. We also invited returning development, such as communication, leadership, and members to attend Te Pito, but most preferred their tailored other job specific training. The courses are being reviewed one-on-one induction that took place in the months to make sure they’re meeting the on-the-job needs of our following the election. people.
It was a huge effort to recruit, re-hire, and induct over To acknowledge the varied role of our Member Support 350 staff who support members. And let’s not forget the staff we introduced an Engaging with You performance massive logistics of moving more than 700 offices when the management programme at the start of the 52nd Parliament. new Government was formed. The programme inducts Member Support staff to the Parliamentary Service, and gives them advice on working Our team also supported our departing members who had effectively with their member of Parliament, as well as served our democracy with honour and respect. coaching and support for their day-to-day work, and career development. Our people relish the opportunity to be directly involved in the dynamic process of our democracy by helping members We’ve increased security standards of Parliament. The Service has improved security for our out-of-Parliament offices by establishing minimum security requirements, and progressively rolling out new duress alarms. Our achievements While we were focused on the election and the transition To keep our information safe, a Chief Information Security to the 52nd Parliament, we also made great progress in the Officer has been appointed. This is a must-have as we following areas. move towards protecting members’ information, and the information of organisations we provide service to. 7
We’re making great progress on our health, safety & comply with the Speaker’s Directions and appropriations, wellbeing framework towards a principle based model. A principle based model The Service is committed to making sure our team feels would take us away from complex funding rulebooks, to a safe, healthy and supported. We do this by modelling high trust and transparency model, which would mean we manaakitanga—caring for others in a generous and could focus on service and support of our members. respectful way. Our challenge —given that this won’t happen in the short As part of our commitment to manaakitanga, the Service term—is how we make a fundamental attitude shift away created a new health, safety and wellbeing strategy, and from the compliance model. introduced a Wellbeing Calendar for employees. Anticipating and adapting Information Systems and We talked to members, and our staff around the country, Technology Services (IST) for members to see how we balance having welcoming offices with the We need to anticipate the evolving technology landscape safety of our people. At the same time, the Service has been to continue to support members as their IST needs get exploring how to make it easier for members to meet their increasingly sophisticated—especially for the growing ranks obligations under the Health and Safety at Work Act 2015. of digital natives. This means increasing our use of cloud services, arming ourselves against cyber-threats, and having We take our health, safety and wellbeing responsibilities the right technical support available around the clock. very seriously, and the progress we have made is testament to this. The review of our IST services will inform the investment and funding needed to move services to the cloud, and make sure We’re creating a welcoming environment our IST team is the right size to enhance our service delivery. Our award winning remodelled entrance and Visitor Centre has improved access and facilities for our visitors. Sustainability of funding Rapid changes in technology, along with the dynamic In this remodelling we also added next-generation security nature of our environment, and the workplace in general, screening to achieve increased openness, while maintaining are a challenge to meet within the three yearly funding an appropriate level of security. cycle. We must ensure we can sustainably do everything required of us, and continue to live up to our reputation Our visitors can now dine at Parliament. Our new caterers for professionalism and integrity. It’s a major challenge —Icon, in partnership with Logan Brown—have opened up achieving all of this within existing funding. iconic Bellamys to the public.
We have also increased our schedule of special public Thanks events. We held a successful Children’s Day in partnership Our people get out of bed in the morning knowing that with the Office of the Clerk of the House of Representatives, they’re supporting New Zealand’s democracy, and are ready with over 600 children participating in a myriad of activities. to help members wherever they can. I want to recognise the We followed this up with a celebration of Matariki that had valuable contribution of all staff of the Parliamentary Service, tours, along with arts and craft activities, and story times for both here in Wellington and across the country, where every our tamariki and their whānau. day they’re supporting New Zealanders.
These events create a family friendly environment and Finally, I would like to thank the Risk and Assurance open the doors of democracy to everyone—which will be Committee for their support and guidance, and the Clerk of boosted with a playground on the lawn in the near future. the House, David Wilson, and his staff for working in partnership with us as we work to establish better outcomes for New Zealand’s Parliament. The challenges ahead Along with these exciting developments, there are ongoing challenges, which include:
Moving from a rules based approach to a principles approach for administering the Speaker’s Directions David Stevenson Our recent follow-up PIF review recommended that we General Manager explore moving our role away from making sure members 28 September 2018 8 Annual Report 2017 - 2018
About Us
We support New Zealand’s democracy by working with We also deliver services to the public, and to agencies on the members of Parliament and the House of Representatives parliamentary precinct: Office of the Clerk of the House of to make sure they have the services they need to engage Representatives, Parliamentary Counsel Office, Department with their parliamentary colleagues, and their communities. of the Prime Minister and Cabinet, and Ministerial and Secretariat Services.
Our risk management approach
The Service is supported by an independent Risk and The key strategic risks are: Assurance Committee that gives guidance to the General • Safety on the precinct and in out-of-Parliament offices Manager on the fundamental governance activities • Information security and management underpinning the Service. • Clarity of role and purpose • People The Executive Leadership Team and the Risk and Assurance • Customer service Committee review the key strategic risks facing the Service • Continued functioning of Parliament quarterly. • Change.
Mitigation strategies are in place for these identified risks, and a process to monitor the effectiveness of these strategies. 9
Our year at a glance The Year of the Election
30 new MPs 10,469 security were inducted access changes over election weekend
165 staff 700 moves completed the onboard process completed over three days following the (PS and non-PS staff) within two months formation of Government. The move team walked of the election 2,450 km (58 marathons)
300 Ministerial Services 125 cost centres accounts were disabled were allocated budgets for the three year period 128 established
Figures collected between the general election and 30 October 2017. 10 Annual Report 2017 - 2018 11
Our highlights
Welcome Kia ora
Over 600 visitors for Improved access with an award We’re modelling manaakitanga Children’s Day, Te rā o ngā winning entrance and and have developed a health, tamariki Visitor Centre safety and wellbeing strategy
Our Library has responded to We’ve developed a Customer We’ve established around 10,000 research requests Experience Programme to minimum security requirements from members of Parliament improve our service delivery to improve security for out-of-Parliament offices 12 Annual Report 2017 - 2018
Our Strategic Outcomes
Outcome: The House of Representatives and members receive high quality services
We provide a range of services to the House of Representatives, We now have a standardised out-of-Parliament office IT set- members, and their political parties to help them fulfil their up which means that our members and Member Support role as elected representatives and legislators, as set out in staff are up and running faster. legislation (the Speaker’s Directions, and Determinations). We welcomed new and returning members to We have two goals to achieve this outcome. Under each goal Parliament after the general election is a list of what the Service has achieved, and a summary of The Service welcomed new members to the 52nd Parliament our performance. at our expo-style hub, Te Pito. Te Pito was designed by the Service, in partnership with Office of the Clerk of the House of Representatives, by speaking to members and their party Goal 1: members and other parliamentary agencies are to find out what information is useful for new members able to work flexibly and effectively wherever they are. entering Parliament.
Increased funding for staff, large constituency, ICT, and At Te Pito, new members were connected with resources, and out-of-Parliament offices our people who will guide them through this parliamentary At the start of the 51st Parliament the Appropriations Review term. Committee (ARC) consulted with members to discuss the funding pressures they face. From these discussions a series All member inductions, as well as the process for exiting of recommendations to change the Speaker’s Directions members, were handled through our Business Process were made. The recommendations were then considered by Management (Kete) system to ensure members were the Parliamentary Service Commission (PSC), who formed a receiving services in a timely manner. Speaker’s Directions working party to decide on a list of the most pressing funding needs. The Navigating Our Services relationship model enabled us to be proactive in managing the employment relationship The PSC agreed on a prioritised list, and then the Service between the Service, the member, and their Member prepared the bid to secure the funding. All funding for the Support staff. This means we have built better relationships recommendations were secured in the 2017 Budget. with new and returning members.
The funding allocations related to non-staff allocations, staffing, large constituency, ICT, and out-of-Parliament offices. Our performance Our strategic measure for satisfaction levels with IST services Before the election we spoke to all members about the is 80%. changes to the Speaker’s Directions for the 52nd Parliament. During 2017/18 our customers received network access Changes to IT equipment in preparation for the general 99.96% of the time. election We refreshed the IT equipment available so members can We conducted a survey of whips, chiefs of staff and office work on modern devices securely anywhere, and at any time. managers as a proxy for members who ranked their We also upgraded to Windows 10, a secure and easy to use satisfaction with ICT services as 3.13 out of 5 (62.6%). The system, along with replacing our telephony system with Skype whips’ survey indicated that we should focus on our for Business which enables teams to work collaboratively. responsiveness, reliability, and the position of Datacom within the Service. Our move to the cloud based Federation platform means that members can use external systems, like FlexiPurchase, without needing a separate log-on. More systems will be added to the Federation platform in the future. 13
Goal 2: members and other parliamentary agencies and have taken part in international cyber exercises to ensure receive high quality services. we have a secure platform for members and our staff.
The Parliamentary Library continues to provide a high Tracking our services through dashboards quality service The IST team developed real time dashboards for our People Our Library has responded to around 10,000 research requests and Culture, and Finance teams so they can track the delivery from members of Parliament, produced 71 debate packs, and of services to members. written over 95 briefing papers. The Library team have also started a number of initiatives as part of their four year strategic Our performance plan which are focused on connecting with our customers. The target satisfaction level of 80% has been assessed by surveying members following the transition between We’re moving towards effortless service design parliaments. In addition, our services (HR, Finance, Travel and The research for our Customer Experience Programme brings Library) during the parliamentary term were assessed against together suggestions members made through two surveys an 80% satisfaction target. — the post-election independent quality assurance (IQA) as assessed by KPMG, and the Litmus survey— along with some Satisfaction with the transition of parliament was measured of the findings from the follow-up Performance Improvement by the Litmus survey. 38 members completed the survey — Framework (PIF) review. this is a similar response rate as previous Litmus surveys (used for the past four election cycles). The Customer Experience Programme is a multi-year plan to improve our service delivery. The follow-up PIF review 54% of returning members were satisfied with the information suggested the Service move away from making sure members they were given before the election, such as changes to comply with the Speaker’s Directions and appropriations, funding, and our plans for the induction programme (Te Pito). towards a principles based model. This shift would ensure the Service could focus on service and support of our members. After polling day, 77% of new members were very satisfied with the first contact from the Service, and our timeliness of We’ve launched a new privacy strategy, programme resources rated highly with 61% of respondents being very and policy satisfied. Returning members were also very satisfied (77%). The privacy strategy, programme, and policy includes a robust framework for reporting and managing privacy New members were highly satisfied with the Te Pito induction breaches, as well as introducing a Privacy Impact Assessment and found our people and material very helpful. 86% of (PIA) process. returning members were satisfied with the services provided after polling day and prior to the formation of Government. The privacy programme is supported and sustained by a network of Privacy Advocates within the Service to While there were positives from the Litmus review, ensure that we continue to improve and refine our privacy it also signalled that we need to improve our IT and protections, and work towards a privacy by design culture. telecommunications service delivery.
Agreements for better supporting the DIA’s Ministerial and The other measure of satisfaction with our services is the Secretariat Services (MaSS), who we provide IST services survey of whips, chiefs of staff and office managers as a proxy and storage, were put in place to enable them to meet their for members indicated an overall result of 3.5 out of 5. statutory obligations under the Official Information Act 1982. Finance and HR services were rated 3.67 (73.4%) and 3.93 The agreements also ensure there are safeguards to protect (78.6%) respectively, Travel was rated 4.36 (87.2%), and the member information as outlined by the Parliamentary Library 4.57 (91.4%). Information Protocol. The new Speaker is also evaluating the service his office IST have a new service delivery model receives, and believes there is room for improvement. The new service delivery model will enable us to specify what outcomes we expect from our IST contractors — Datacom We carried out a survey with the Office of the Clerk of the — while also giving them more flexibility to provide more House of Representatives and the Parliamentary Counsel people power during periods of high demand. Office in relation to the satisfaction of financial services received in 2017/18. The Office of the Clerk rated us 4 out of 5 Increasing our cyber security knowledge (80%) and the Parliamentary Counsel Office rated us 10 out of The Service has worked with other Westminster parliaments, 10 (100%) reaching the strategic target of 80%. 14 Annual Report 2017 - 2018
Outcome: An accessible Parliament
The Service is committed to providing an accessible Children’s Day, Te rā o ngā tamariki, was an exciting way for Parliament. We encourage the public and students to visit families to learn more about Parliament, and to ensure the and learn about our democracy, history, and how legislation younger generation know how to access tools to make their becomes law. voices heard in our democracy.
We work with the Office of the Clerk of the House It was a fantastic success, we had over 600 visitors, and of Representatives on initiatives to make Parliament tamariki came away knowing that our House is their house. accessible, such as, Parliament’s website, social media One child said, “It’s an inclusive place where you can go and channels, and more recently on family focused events. you might even be interested in politics and you don’t even know, like me.” Our precinct needs to be safe for visitors, and for the people who work here every day. We also need to balance the For Matariki, we helped the kids make crowns and torches, protection of our buildings with accessibility, security, and read stories, and let families know how to celebrate Matariki making sure the buildings are fit-for-purpose. at home. And our fantastic Visitor Services team took our guests on tours around the precinct. We have two goals for achieving these outcomes. Under each goal is a list of what the Service has achieved, and a Kids of all ages came away from Parliament having learnt summary of our performance. something about Matariki, and that the precinct is an open space that’s available to them and their families.
Goal 1: the public can learn about and engage with Keeping Parliament accessible the parliamentary process. The Service has maintained our Gold Be.Accessible rating, and are working towards the highest rating—platinum. Kids in the House tour Be.Accessible is a social change initiative dedicated to To engage our younger visitors, we designed a Kids in the creating a truly accessible country. House tour for children aged 5 – 12. On the tour, the children receive a ‘Passport to Parliament’ so they can track their The Parliamentary Library has answered over 1,500 enquiries progress with stickers as they make their way through the from the public via the Parliamentary Information Service. precinct.
We’ve welcomed whanau to our Children’s Day and Our performance Matariki celebrations During the 2017-2018 financial year we had 95,188 visitors to Alongside our fantastic tours of the precinct and education Parliament, and customer satisfaction surveys indicate that programmes, we’ve held two events at Parliament with the 99% of those visitors were satisfied with their visit. Office of the Clerk of the House of Representatives that focused on bringing families into the buildings to learn 14,500 students from 567 groups attended classes and tours about our democracy. with the Education Service, and 176 resource packs were sent to schools. 15
Goal 2: the parliamentary precinct is accessible, safe, Maintaining our buildings used and maintained effectively. Bowen House is being upgraded to ensure it’s fit for purpose.
Our new entrance is welcoming and secure New lifts are being installed in the Exec Wing which are It’s now more obvious where our entrance is, and the energy efficient, and will keep running for the next 25 years. number of security scanners has increased so that visitors can get in quickly, and be safe. The air conditioning units for our three buildings are being replaced. The old units were at their end of life, and It’s also clearer for people to know where to go once they get had a refrigerant which is banned from 2020. The new air inside with a separate Visitor Centre and business reception. conditioning units will be here early in the next financial year.
For members and staff who have Parliament access cards, We have a comprehensive investment plan to preserve there’s now speed lanes, separate to the visitor security Parliament’s heritage buildings for future generations. processing, which means they can get into the building quickly, and get on with their day. Our performance The deliverables for the 2017/18 in the Capital Asset We now have retractable bollards on all vehicle entry points to Management plan were met. ensure the safety of everyone on the parliamentary precinct. The Service has achieved a Gold Standard for the accessibility Our new out-of-Parliament offices meet the new safety of our buildings with Be.Accessible. and security standards Every out-of-Parliament office opened since September Out-of-Parliament offices opened during the 52nd 2017 now meets the higher safety and security standard Parliament meet the new security standards. There’s a stated in the Speaker’s Directions for the 52nd Parliament. programme of work to ensure out-of-Parliament offices that Now, our team is working on updating out-of-Parliament existed from the 51st Parliament meet the new standard by offices that were in place before the new standard. the end of the calendar year. 16 Annual Report 2016 - 2017 17
Our people
We have two workforces — those who work directly with a member either on the precinct, or in their out-of-Parliament offices, and our Corporate staff who provide professional services to members, agencies on the precinct, and the public.
While our team was focused on preparation for the election, we also worked on our induction programmes, learning and development for leaders and staff, network meetings for our out-of- Parliament colleagues, and our health and safety strategy.
48% We employ 58% women in senior leadership positions, up 693 staff 42% 62% 38% from 39% last year (643.6 FTE) Female Male Member Support staff staff Corporate 18 Annual Report 2017 - 2018
Leading our people into the 52nd Parliament
The increased investment in our people across the Service The change of Government has a direct impact on our has led to a modern and progressive transition to the 52nd Member Support staff who work in a member of Parliament’s Parliament. office. Transitioning into the nd52 Parliament created uncertainty for some Member Support staff as they went to The Navigating Our Services relationship model enabled us a new role, a new member, or left the Service. to be proactive in managing the employment relationship between the Service, the member, and their Member Over this period our Member Support Staff Managers were Support staff. Being proactive has meant we’ve built better in contact with their Member Support staff to ensure they relationships with new and returning members, as well as had the support they needed, and understood what was our Member Support staff. happening with the recruitment process.
We improved our processes for recruiting staff and The other challenge during this period is the high demand connecting them with services by using our customer on our people processes, such as payroll and recruitment, as relationship management tool. our volume dramatically increases over a short period of time.
Developing our people
We want our people to have a positive and supportive Developing our leaders working environment, along with the right skills, knowledge, Our leadership framework was developed by a working and tools to perform at their very best every day. To make group established in August 2017. The framework’s this happen we have developed and implemented the programme focuses on building teams and coaching. All following programmes and initiatives: people leaders—from emerging leaders to the Executive Leadership team—have had the opportunity to attend Essentials Skills induction programme programmes, as well as a Team Management Profile Our new Essential Skills course supports new and returning workshop. Member Support staff by giving them training in health, safety and wellbeing, security, IST, finance, and media. Our Learning and Development people find the course valuable, so we’ll continue to offer it After last year’s successful pilot, our learning and as part of our induction programme. development courses are still being offered to our Corporate and Member Support staff. We also produced a number of videos for the 52nd Parliament that covered: the Code of Conduct, health, safety A full review of the courses, in consultation with our staff, is and wellbeing, privacy, information security, introduction underway to ensure we’re building skills in the right areas. to New Zealand’s Parliament, and working in an out-of- Parliament office. Our team are also developing a capability framework for Member Support staff to assess what skills they need over We’ll continue to deliver our Orientation Day for all new the course of their career with the Service. Corporate and Member Support staff.
We’ve extended our workforce reporting
Our extended workforce reporting enables our leaders to party information, health, safety and wellbeing, along with better understand their people. This reporting now includes information about our Corporate and Member Support staff. 19
Engaging with Member Support staff
Engaging with You aims to increase the interaction between together, share information and knowledge, and connect Member Support staff, and the rest of the Service’s workforce with agencies and key contacts from their community. to ensure they feel included and engaged. Service led network meetings The programme gives an introduction to the Service, The Service facilitated a series of network meetings in and advice on how to work effectively with their member Auckland, Christchurch, Rotorua and Wellington for Member of Parliament, along with coaching and support on Support staff. These meetings provided an opportunity for performance, and development opportunities. staff to talk about what is working for them, what can be improved, and how the Service can support them. Regional Network Meetings Our Regional Network Convenors facilitate meetings in each These meetings have increased engagement between region throughout the year. These meetings enable our Member Support staff across the regions, which is one of Member Support staff in out-of-Parliament offices to come the aims of the Member Support Staff Manager relationship model.
The health, safety and wellbeing of our people
A strategy to lift our health, safety and wellbeing there are significant challenges associated with our widely performance dispersed out-of-Parliament people. Our priority is to create The Service has increased our focus on health, safety and a sustainable and meaningful forum for them to take part in wellbeing, particularly for our out-of-Parliament staff, after our programmes, given their high risk working environment. two reviews of risk. These reviews made a number of recommendations that have been incorporated into our We’re talking with our out-of-Parliament staff about the Health, Safety and Wellbeing strategy. The strategy outlines forum, and the implementation of the agreed structure will an ambitious work plan for the next three years, designed to be our focus in 2018/9. lift our performance. This calendar year, our online incident risk management Staff engagement with the Health and Safety system will be put in place. The system will help staff and Management Framework leaders manage health, safety and wellbeing. It will also We’ve worked with our people to redevelop the employee ensure our hazards, incidents, and risks are recorded, as participation elements of our Health and Safety Management well as being visible, better understood, and appropriately Framework. While precinct staff have a forum to participate, managed.
Employment relations
CEA1 Negotiations Negotiations for a new Collective Employment Agreement between Parliamentary Service and the Public Service (CEA1) covering Corporate staff began in March 2018 Association (PSA). Negotiations are ongoing. 20 Annual Report 2017 - 2018
Future focus
Our plans over the next two financial years include:
Developing a flexible work strategy to attract and retain talent as part of the diversity and inclusion work.
Creating a forum for out-of-Parliament staff to be involved in shaping health, safety and wellbeing programmes.
Surveying Corporate and Member Support staff for the employee engagement work in 2019.
Adding decision making and accountability to the Leadership Development framework, along with toolkits in health, safety and wellbeing, coaching, and management fundamentals.
Getting our online incident risk management system up and running later this year to support staff and leaders to manage their health, safety and wellbeing. 21
Our workforce
The Service employs 693 people which equates to 643.6 full of the General Manager. Due to the nature of our work, 36% time equivalent staff (FTEs). At the end of the last financial of our people work off-precinct, with the remaining 64% year (2016/17), we had an additional 40 staff members working on the parliamentary precinct. working to a similar FTE. Unplanned turnover (annualised) of Corporate staff has 58% of our workforce are Member Support staff who work increased from 9.4% in 2017 to 16% in 20181, which is above with members of Parliament, or in party political offices. The the public sector average of 11.5%. other 42% provide corporate support and service on behalf
Workforce
2016 2017 2018 Member Support 378.7 376.5 370.9 Corporate Support 271.0 267.0 272.7
Total FTE 649.7 643.5 643.6
Age 30
25
20
% 15
10
5
0 15-19 20-29 30-39 40-49 50-59 60-69 70-79 80+
Parliamentary Service June 2018 Public Service June 2017
1 Unplanned turnover includes resignation, retirements, dismissals and deaths. It excludes all fixed term employees. 22 Annual Report 2017 - 2018
Gender Female Male
70 71% 60 62% 50 60% 51% 49% 40 % 40% 30 38% 29% 20
10
Parliamentary Service Corporate Member Support Public Service*
The gender split across the organisation is similar to the The gender pay gap is 9.9%, down 2.9% from the same time public service. last year, and is less than the public service gender pay gap of 12.5% (2017).
Ethnicity
Our people have self-identified with 48 different ethnicities. 15% of employees identified as New Zealander which has been included in the Other Ethnic category in the table below.
2015/16 2016/17 2017/18 Public Service*
Māori 8.1 7.0 9.8 16.0
Pacific 3.1 3.5 3.0 8.7
Asian 3.4 3.6 4.2 9.4
% MELAA1 0.7 0.4 0.5 1.3
European 39.2 38.2 40.2 69.1
Other Ethnic 9.9 12.3 15.9 n/a
Not Stated 35.6 35.0 26.4 n/a
*As at June 2017. Numbers do not add up due to rounding. A person may identify with up to three different ethnicitites.
1 Middle Eastern, Latin American, African. 23
Flexibility
We have a mix of full and part-time staff across the Service.
Full-time Part-time
Parliamentary Service 65% 35%
Corporate 86% 14%
Member Support 51% 49%
Part-time workforce
Corporate 81% 19%
Member Support 78% 22%
Diversity and inclusion
The last 12 months have been an important first step in Diversity and inclusion has been recognised as key to developing a Diversity and Inclusion strategy for the Service. the future success of the organisation. Consequently, a Our focus has been on diagnosing our current state and dedicated role to manage diversity and inclusion at the how we are tracking as an organisation through improving Service has been introduced within the Parliamentary our reporting and insights, and considering our resources. People and Culture team. This will allow for a strategy to be developed along with introducing programmes such as flexible working and unconscious bias training. 24 Annual Report 2016 - 2017 25
Our performance 26 Annual Report 2017 - 2018
Measuring our performance
Our appropriations We achieved the majority of agreed performance standards this year against our appropriations. Each appropriation is detailed below together with an assessment of performance (both financial and non-financial).
Support Services to the Speaker The intention of this appropriation is to fund the Speaker’s office as well as to provide for external triennial reviews of the appropriations supporting Parliament.
Measure Performance standard 2016-17 Result 2017-18 Result
The Speaker is satisfied with Customer satisfaction of at least 4 Achieved Not achieved the provision of resources and on a scale of 1 to 5 in the annual services to his office. Speaker’s satisfaction survey. 5 3.31
Unaudited
Actual 2018 Budget 20182 Revised Budget 20183
Financial performance Figures are $000s and GST exclusive Total expenditure 341 425 432
Operations, Information and Advisory Services multi-category expense The intention of this appropriation is to provide administrative and support services to the House of Representatives and to members of Parliament, and making Parliament publicly accessible.
Measure Performance standard 2016-17 Result 2017-18 Result
At least 3.5 on a 1- 5 scale of overall Members of Parliament are Achieved quality of services. Measured in the satisfied with the overall New measure annual whips, chiefs of staff and office quality of services. 3.57 managers as a proxy to members.4
1 The Speaker is new to the role and is still evaluating the service provision to his office. Potential improvements have been identified with the Speaker. 2 2018 Budget figures are those numbers reported in the 2017/18 Estimates of Appropriations. 3 Revised Budget 2018 figures are adjustments to the Budget figures and are reported in the 2018 Supplementary Estimates. 4 Due to the low number of responses to the NPS in 2016/17, and after consultation with Audit New Zealand, the Service undertook a satisfaction survey among whips, chiefs of staff and office managers as a proxy for member’s measure. 15/17 responses were received and the average score was calculated (out of 5) for the overall quality of services and for individual service lines (Parliamentary Library, ICT, Travel, Finance and HR). Respondents were asked to rank services on a scale of 1 to 5, 1 being very dissatisfied and 5 being very satisfied. 27
Measure Performance standard 2016-17 Result 2017-18 Result
80% overall satisfaction rating in an Not achieved New members are satisfied independent survey of new members with services provided over New measure of Parliament following the general 73%5 the election period. election of 2017.
80% overall satisfaction rating in an Not achieved Returning members are independent survey of returning satisfied with services provided New measure members of Parliament following the 62%6 over the election period. general election of 2017.
Building and Operations Management The intention of this appropriation is to achieve building maintenance and operational services.
Measure Performance standard 2016-17 Result 2017-18 Result
The public has access to the 75,000 – 80,000 visitors Achieved Achieved parliamentary precinct via parliamentary tours and education 80,925 visitors to 95,188 visitors to visits. Parliament Parliament
Visitors undertaking a parliamentary 90% of visitors rate their Achieved Achieved tour rate the parliamentary parliamentary experience experience as good or excellent. as good or excellent. 98% 99%
The proceedings of the House of Proceedings are not Achieved Achieved Representatives are not interrupted interrupted due to incidences occurring in the public gallery.
The condition of our heritage Planned CAMP Achieved Achieved buildings is maintained to reflect deliverables are their national significance and completed. these are accessible to the disabled community. Maintain ‘Be Accessible’ Achieved Achieved silver standard, or better. Gold standard Gold standard
5 Although 80% target was not met new members were satisfied with; first contact (95%), initial contact and quality/timeliness of resources in response to their queries (100%) and responding to queries in a timely manner (95%). 6 Although 80% target was not met, this has increased since the 2014 election. The survey was undertaken 5-6 months after the election which may have impacted members’ recall of events. 28 Annual Report 2017 - 2018
80% of targets in the PSR7 Not achieved Not achieved Capability Maturity Model - 50% of targets were met. - 58% of targets were are met.8 met. 9
100% of members’ OOP 96% of offices meet Not achieved offices meet the minimum the minimum required - 56% of offices meet required security standard.10 the minimum required standards. standard. 11
97.5% of security incidents All incidents resolved Not achieved on the precinct are successfully and 91% of - all incidents resolved The parliamentary precinct and out- resolved successfully post-incident reports successfully and 95% of of-Parliament (OOP) offices are safe with detailed accurate were completed within post-incident reports and secure post-incident reporting 12 hours. were completed within submitted within 12 hours 12 hours.12 of any incident.
95% of security incidents All incidents resolved All incidents resolved in members’ OOP offices successfully and 96% of successfully and 95% of are resolved successfully post-incident reports post-incident reports with detailed accurate were completed within were completed within post-incident reporting 24 hours. 24 hours. submitted within 24 hours (working days) of any incident.
Unaudited
Actual 2018 Budget 2018 Revised Budget 2018 Financial performance Figures are $000s and GST exclusive Total expenditure 26,497 28,731 27,146
7 PSR is Protective Security Requirements. 8 The Protective Security Requirements Capability Maturity Model (CMM) is a self-assessment tool and the maturity ratings were used by the Service to calculate the maturity improvement percentage. The CMM raw data was collated during an internal workshop by a representative group of senior organisational members from within the Service representing the different functioning elements (physical security / personnel security / information security / health & safety / privacy / risk management) of the PSR. The final percentage result is achieved by taking the “March 2018 ratings (29)” and measuring them against the “optimal targets established in March 2017 (50)”, i.e. 29/50x100=58%. Note: the PSR CMM is an internal self-assessment. 9 The annual PSR self-assessment was submitted in March 2018 and this resulted in a recalibration of targets within the Capability Maturity Model. The achieved targets are a reflection of the organisations security maturity level and a programme of work is underway to achieve the 80% target by the next PSR annual self-assessment in March 2019. These results align with the trend in all-of-government, and it aligns with our optimal goal and journey to demonstrate exemplary practice under the PSR. 10 The measure for 2016/17 was 90% and therefore achieved the measure for that reporting year. 11 All new offices opened during the 52nd Parliament meet 100% of the enhanced minimum security requirements, and a programme of work is underway to retrospectively bring existing offices up to the enhanced requirements by the end of this calendar year. The minimum security requirements for out-of-Parliament offices were changed and enhanced mid-way through the reporting year as we transitioned to the 52nd Parliament. 12 The target increased this reporting year from 95% to 97.5% and it is evident this may be too ambitious. The Service has a programme of work underway to improve reporting of incidents, in particular the introduction of an online incident reporting system. This will ensure our people can report incidents in an easy and timely manner, and we can achieve the step change to grow the safety and security culture across the precinct. 29
Parliamentary Information, Communication and Technology Services The intention of this appropriation is to achieve the supply of information, communications and technology services.
Measure Performance standard 2016-17 Result 2017-18 Result
Customers receive quality Customers receive quality network Achieved Achieved network access to email access to email services, file and 99.87% 99.96% services, file and print services, print services, internet and intranet internet and intranet access via access via desktop or mobile desktop or mobile devices in devices in the precinct 99.8% of the the precinct. time during business hours.13
On-site incidents for members’ At least 90% of on-site incidents for Achieved Not achieved offices that have priority service members’ offices that have priority status are responded to on-site service status are responded to on- 100% 82%14 within six business hours. site within six business hours.
Members are satisfied with the At least 3.5 on a 1-5 scale of overall Not achieved Not achieved quality of ICT services. quality of services. Measured in the annual whips, chiefs of staff 3.21 3.1316 and office managers as a proxy to members.15
Unaudited
Actual 2018 Budget 2018 Revised Budget 2018 Financial performance Figures are $000s and GST exclusive Total expenditure 17,820 17,456 17,645
13 Business hours are defined as 7.30am to 11.00pm while the House of Representatives is sitting and 7.30am to 6.00pm on non-sitting days. 14 The planning for the 2017 general election was based on the likely outcome as predicted by most of the polls, with additional capacity to ensure new members arriving at Parliament were appropriately supported. However, the number of new members (33), and a change in government combined, had a significant impact on the 2nd and 3rd quarter service results, resulting in the metrics established to ascertain an appropriate service level during business as usual were not met. 15 See footnote 4. 16 See footnote 13. The survey results show potential areas of improvement in responsiveness, reliability and repositioning of our contracted provider (Datacom) within the Service. 30 Annual Report 2017 - 2018
Parliamentary Library The intention of this appropriation is to achieve the supply of Library services.
Measure Performance standard 2016-17 Result 2017-18 Result
Members are satisfied with the At least 3.5 on a 1-5 scale of overall Achieved Achieved quality of Library services. quality of services. Measured in the annual whips, chiefs of staff and office 4.69 4.57 managers as a proxy to members.17
Members and their staff use Percentage of members or their staff Achieved Achieved Library Services per year: usage of Library services per year: • once or more • 97% once or more 100% 98% • five or more • 80% five or more 98% 88% • ten or more • 60% ten or more 94% 82%
Unaudited Actual 2018 Budget 2018 Revised Budget 2018 Financial performance Figures are $000s and GST exclusive Total expenditure 5,513 4,916 5,543
Personnel, accounting and advisory services to members and other parliamentary agencies The intention of this appropriation is to achieve the supply of finance, HR and advisory services.
Measure Performance standard 2016-17 Result 2017-18 Result
Members are satisfied with the Achieved Achieved At least 3.5 on a 1-5 scale of overall quality of services: quality of services. Measured in the • Financial • 4.00 • 3.67 annual whips,chiefs of staff and office • People & Culture (HR) • 4.14 • 3.93 managers as a proxy to members.18 • Travel • 4.77 • 4.36
Employment Agreements for 95% of requested Employment Achieved Achieved members’ staff are produced Agreements for members’ staff are within three working days of provided within three working days of 95% 99% receipt. receipt.
Provision of accurate and Achieved Achieved Processed with a 99.5% to 100% timely payroll services to six accuracy rate. organisations.19 99.9% 99.5%
Unaudited Actual 2018 Budget 2018 Revised Budget 2018 Financial performance Figures are $000s and GST exclusive Total expenditure 9,721 9,292 10,510
17 See footnote 4. 18 See footnote 4. 19 The six payroll organisations are Parliamentary Service, Parliamentary Service (Crown), Members of Parliament, Ministers, Office of the Clerk of the House of Representatives, and Parliamentary Counsel Office. 31
Statement of responsibility
I am responsible, as General Manager 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 2018 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 2019 and its operations for the year ending on that date.
David Stevenson General Manager
28 September 2018 32 Annual Report 2017 - 2018
Independent Auditor’s Report
To the readers of Parliamentary Service’s annual report for the year ended 30 June 2018
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 40 to 64, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2018, 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 2018 on pages 12 to 15 and 25 to 30; • the statements of expenses and capital expenditure of the Service for the year ended 30 June 2018 on page 47; • the schedule on expenditure on travel entitlements of former members and their spouse or partner on pages 82 to 86; and • the schedules of non-departmental activities which are managed by the Service on behalf of the Crown on pages 65 to 81 that comprise: - the schedules of assets; liabilities; commitments; and contingent liabilities and assets as at 30 June 2018; - the schedules of expenses; and revenue for the year ended 30 June 2018; - the statement of trust monies for the year ended 30 June 2018; 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 40 to 64: - present fairly, in all material respects: • its financial position as at 30 June 2018; 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 12 to 15 and 25 to 30: - presents fairly, in all material respects, for the year ended 30 June 2018: • 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 page 47 are presented fairly, in all material respects, in accordance with the requirements of section 45A of the Public Finance Act 1989. 33
• the schedule of expenditure on travel entitlements of former members and their spouse or partner on pages 82 to 86 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 65 to 81 present fairly, in all material respects, in accordance with the Treasury Instructions: - the assets; liabilities; commitments; and contingent liabilities and assets as at 30 June 2018; and - expenses; and revenue for the year ended 30 June 2018; and - the statement of trust monies for the year ended 30 June 2018. Our audit was completed on 28 September 2018. This is the date at which our opinion is expressed. The basis for our opinion is explained below. In addition, we outline the responsibilities of the General Manager and our responsibilities relating to the information to be audited, we comment on other information, and we explain our independence.
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 General Manager for the information to be audited The General Manager is responsible on behalf of the Service for preparing: • 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. • 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 General Manager 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 General Manager is responsible on behalf of the Service for assessing the Service’s ability to continue as a going concern. The General Manager 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 General Manager’s responsibilities arise from the Public Finance Act 1989. 34 Annual Report 2017 - 2018
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 2016-2020 and relevant Estimates and Supplementary Estimates of Appropriations 2017/18, and the 2017/18 forecast financial figures included in the Service’s 2017/18 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 General Manager. • 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 General Manager and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Services’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 General Manager 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. 35
Other information The General Manager is responsible for the other information. The other information comprises the information included on pages 1 to 11, 7 to 24, 31 and 36 to 39, 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 (Revised): 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 36 Annual Report 2017 - 2018 37
Parliamentary Service Annual Report Financial Statements 30 June 2018
Key to the financial statements
Additional information
Judgements and estimates
Notes to the statements
Overview
Policies and procedures
Risks 38 Parliamentary Service Annual Report Financial Statements 30 June 2018
Financial Overview Parliamentary Service’s operational review
The Service’s revenue was in line with our revised budget of The 2017/18 financial year saw significant time spent on $61.3m. Expenditure was $59.9m with the $1.4m underspend ensuring all members and support staff were operating on primarily a result of delays in operational projects. fit-for-purpose ICT equipment, upgrading all devices across the organisation to Windows 10, and planning the Service’s The Minister of Finance agreed that in cases where project Cloud migration strategy. delays were due to external circumstances the Service may carry forward unspent funds. The total value of funds to be Human resources support, finance, member services carried forward to the 2018/19 financial year is $1.3m. and advisory services cost $9.7m. All Member Support staff are employed by the Service on events based contracts. An Crown revenue for the 2017/18 financial year included election and the transition to the new parliamentary term $1.7m to transition from the 51st to the 52nd Parliament. sees all contracts come to an end, and members having to Key drivers of the increased workload were the use of re-hire staff. events based contracts, significant personnel and office movement, training and induction costs, the development, All 51st member and party support funding was closed, and design and printing of all 52nd Parliament documentation, 52nd Parliament funding under the new Speaker’s Directions which included the Speaker’s Directions and related policies. were created. This generated a significant additional workload for our Corporate staff. Building and operational management on the parliamentary precinct is the largest cost driver with $26.5m, The Parliamentary Library costs $5.5m. The Library and includes the cost of all on-precinct security, visitor provides research and information services to members and services, educational tours, and building maintenance. A their support staff. significant focus during this financial year was bringing all new member out-of-Parliament offices up to the new minimum The development of business process flows within our security standards established for the 52nd Parliament. Business Process Management (Kete) system in previous financial years enabled the Service to handle significant Information, communication and technology (ICT) volumes of service requests, before and during the transition services cost $17.8m. The majority of this cost was incurred to the 52nd Parliament, with a high degree of accuracy and in providing ICT services to members and their support staff. in tight deadlines.
The Parliamentary Accommodation Strategy
The Coalition Agreement creating the Government of the the majority of the floors, as well as a complete refurbishment 52nd Parliament did not include any new buildings on the of the escalators and lift in the tunnel that connects Bowen parliamentary precinct during this parliamentary term. At House to the Executive Wing. A budget initiative was the time of this agreement the Service was utilising a $9.9m approved during 2017/18 to transfer the $7.8m unspent appropriation established to proceed with the detailed portion of the $9.9m PAS appropriation into a departmental design and consent work on a proposed new Ministers’ capital injection and operational appropriation to assist with and members’ building to be constructed at the rear of the this refurbishment. parliamentary precinct. This refurbishment programme will bring Bowen House up As an alternative the Service extended the lease of Bowen to a fit-for-purpose standard for the remainder of our lease House. As part of extending the tenancy the Service has period. begun the development of a renovation programme across 39
Looking ahead – forecast financial statements 2018
The 2018 budget figures for the year ended 30 June 2018 The budget and forecast figures are unaudited and have were published in the 2017 annual report as forecast been prepared using the accounting policies adopted in numbers. They are consistent with the Service’s best estimate preparing these financial statements. financial forecast information submitted to Treasury for the 2018 Budget Economic and Fiscal Update (BEFU). The 30 June 2019 forecast figures have been prepared in accordance with and comply with PBE FRS 42 Prospective The 2019 forecast figures are for the year ending 30 June 2019, Financial Statements. these are consistent with the best estimate financial forecast information submitted to Treasury for the 2019 BEFU. The General Manager is responsible for the forecast financial statements, including the appropriateness of The forecast financial statements have been prepared as the assumptions underlying them and all other required required by the Public Finance Act 1989 to communicate disclosures. forecast financial information for accountability purposes.
Significant assumptions used in preparing the forecast financials
The forecast financial figures contained in these financial • Operating costs are based on historic experience. The statements reflect the Service’s purpose and activities and general pattern is expected to continue. are based on a number of assumptions on what may occur • Estimated year-end information for 2018 is used as the during the 2018/19 year. The forecast figures have been opening position for the 2019 forecasts. compiled on the basis of existing government policies • Forecast 2019 is subject to budget initiatives and and ministerial expectations at the time the Estimates of technical adjustments that may occur throughout the Appropriation were finalised. financial year.
The main assumptions adopted for the forecast were as The Statement of Representation for the BEFU forecast was follows: signed 29 March 2018 and was based on the PBE standards. • The Service’s activities will remain substantially the same as for the previous year. • Financial year 2018/19 funding was reduced due to it not being an election year. 40 Parliamentary Service Annual Report Financial Statements 30 June 2018
Statement of comprehensive revenue and expense For the year ended 30 June 2018
Unaudited Revised Actual Actual Budget1 Budget2 Forecast3 2017 2018 2018 2018 2019 $000 Notes $000 $000 $000 $000 Revenue 51,988 Crown 54,864 54,315 54,864 53,799 6,174 Departmental 2 6,055 5,906 6,006 5,834 1,609 Other revenue 2 401 599 406 406
59,771 Total revenue 61,320 60,820 61,276 60,039
Expenses 22,527 Personnel 3 23,622 18,063 23,591 23,594 4,835 Depreciation and amortisation 8 & 9 4,639 4,903 4,918 4,802 1,832 Capital charge 4 1,833 1,833 1,833 1,833 29,118 Other expenses 5 29,828 36,021 30,934 29,810
58,312 Total expenses 59,922 60,820 61,276 60,039
1,459 Surplus 1,398 - - - Other comprehensive revenue and expense
1,459 Total comprehensive revenue and expense 1,398 - - -
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
1 Budget 2018 figures are those numbers reported in the 2017 Estimates of Appropriation. 2 Revised Budget 2018 figures are adjusted Budget 2018 figures as reported in the 2018 Supplementary Estimates of Appropriation. 3 Forecast 2019 figures are as reported in the 2018 Estimates of Appropriation. 41
Statement of financial position as at 30 June 2018
Unaudited Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 Notes $000 $000 $000 $000 Assets Current assets 5,563 Cash and cash equivalents 4,022 4,295 4,443 9,240 10,246 Debtors and other receivables 6 13,381 11,130 10,246 10,246 1,407 Prepayments 985 750 1,407 1,407 26 Inventory 7 57 45 30 30 17,242 Total current assets 18,445 16,220 16,126 20,923
Non-current assets 12,902 Property, plant & equipment 8 12,882 12,106 13,453 12,217 7,852 Intangible assets 9 7,814 9,297 8,056 8,445 20,754 Total non-current assets 20,696 21,403 21,509 20,662
37,996 Total assets 39,141 37,623 37,635 41,585
Liabilities Current liabilities 3,828 Creditors and other payables 10 3,715 3,765 3,876 3,876 1,459 Return of operating surplus 12 1,398 - - - 1,483 Employee entitlements 11 1,648 2,695 1,521 1,521 6,770 Total current liabilities 6,761 6,460 5,397 5,397
Non current liabilities 676 Employee entitlements 11 830 607 688 688 7,446 Total liabilities 7,591 7,067 6,085 6,085
30,550 Net assets 31,550 30,556 31,550 35,500
Taxpayers' funds 30,550 Taxpayer funds 13 31,550 30,556 31,550 35,500 30,550 Total taxpayers' funds 31,550 30,556 31,550 35,500
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 Parliamentary 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 42 Parliamentary Service Annual Report Financial Statements 30 June 2018
Statement of changes in taxpayers’ funds for the year ended 30 June 2018
Unaudited Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 Notes $000 $000 $000 $000 26,156 Balance at 1 July 2017 30,550 30,556 30,550 31,550 1,459 Total comprehensive revenue & expense 12 1,398 - - -
Owner transactions 4,394 Capital injection - cash 1,000 - 1,000 3,950 (1,459) Return of operating surplus to Crown (1,398) - - - 30,550 Balance as at 30 June 2018 31,550 30,556 31,550 35,500
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 43
Statement of cash flows for the year ended 30 June 2018
Unaudited Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 $000 $000 $000 $000 Cash flows from operating activities 53,508 Receipts from revenue Crown 51,283 53,115 54,864 53,799 7,924 Receipts from other revenue 6,922 6,505 6,408 6,240 (29,184) Payments to suppliers (29,605) (36,019) (30,964) (29,874) (22,827) Payments to employees (23,292) (17,635) (23,478) (23,530) (1,832) Payments for capital charge (1,833) (1,833) (1,833) (1,833) (172) Goods and services tax (net) 50 - 13 -
7,417 Net cash flow from operating activities 3,525 4,133 5,010 4,802
Cash flows from investing activities Receipts from sale of property, plant and - 87 - - - equipment and intangibles (1,765) Purchase of property, plant and equipment (2,046) (1,756) (2,726) (706) (2,914) Purchase of intangible assets (2,648) (3,355) (2,945) (3,130)
(4,679) Net cash flow from investing activities (4,607) (5,111) (5,671) (3,836)
Cash flows from financing activities: - Capital injections 1,000 - 1,000 3,950 (703) Return of operating surplus (1,459) (798) (1,459) -
(703) Net cash flow from financing activities (459) (798) (459) 3,950 2,035 Net increase/(decrease) in cash held (1,541) (1,776) (1,120) 4,916 3,528 Cash at the beginning of the year 5,563 6,071 5,563 4,324
5,563 Cash at the end of the year 4,022 4,295 4,443 9,240
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 44 Parliamentary Service Annual Report Financial Statements 30 June 2018
Statement of cash flows (continued) as at 30 June 2018
Reconciliation of net surplus/(deficit) to net cash flow from operating activities
Unaudited Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 $000 $000 $000 $000
1,459 Net surplus 1,398 - - - Add/(less) non-cash items 4,835 Depreciation and amortisation 4,639 4,903 4,918 4,802 69 Inc/(Dec) in non-current employee entitlements 154 - - - (172) Inc/(Dec) in GST Payable 50 - 13 - 4,732 Total non-cash items 4,843 4,903 4,931 4,802
Add/(less)movements in deferrals and accurals 1,608 (Inc)/Dec in debtors (3,135) (1,200) - - (666) (Inc)/Dec in prepayments 422 - - - 53 (Inc)/Dec in inventory (31) - (4) - 166 Inc/(Dec) in creditors and other payables (165) 430 83 - Inc/(Dec) in provision for current employee 63 165 - - - entitlements 1,224 Total net movement in working capital items (2,744) (770) 79 - Add/(Less) investing activity items Loss/(Gain) on disposal of property, plant and 2 28 - - - equipment and intangibles 7,417 Net cash flow from operating activities 3,525 4,133 5,010 4,802
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 45
Statement of commitments as at 30 June 2018
The amount disclosed below are future commitments based on the current rental rates.
Actual Actual 2017 2018 $000 $000 Non-cancellable operating lease commitments 7,221 Not later than one year 7,610 30,496 One to five years 27,621 9,097 More than five years 4,949
46,814 Total non-cancellable operating lease commitments 40,180
Non-cancellable operating lease commitments
The Service has long-term leases on its premises in • The lease has a fixed annual rent; and Wellington which are subject to three yearly reviews. The • Is cancellable after 24 years from the start of the Service leases four properties, all are fixed term and there are lease; and no contingent rents. There are no restrictions imposed by • Has no lease renewal dates. the lease arrangements. No.1 The Terrace Bowen House • Used for Parliamentary TV; and • This lease covers office accommodation, two residential • Has a termination date of 31 December 2018. units and car parks. • The current lease is to 14 December 2022 and has two The Thorndon Store rights of renewal each for six years. The final expiry date • Used as an off-site storage facility; and is 14 December 2034. • Has a lease renewal date of 31 August 2021. • Rent will increase by 2% per annum compounding each year from 2018 – 2021 inclusive. • In 2022, the rent will undergo a market rent review. Other non-cancellable commitments The Service has entered into non-cancellable contracts for No. 3 The Terrace computer support, building services and other contracts for • Used for select committee and meeting room services. accommodation.
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 46 Parliamentary Service Annual Report Financial Statements 30 June 2018
Operating leases as a lessor
Actual Actual 2017 2018 $000 $000 Non-cancellable operating leases 846 Not later than one year 392 366 Later than one year and not later than five years 16
1,212 Total non-cancellable operating leases 408
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 2018
Contingent liabilities There were no quantifiable contingent liabilities in 2018 (2017: nil).
Contingent assets There are no contingent assets in 2018 (2017: nil).
The notes to the accounts form part of and are to be read in conjunction with these financial statements 47
Appropriation statements
Unappropriated Expenditure Capital Injections Parliamentary Service did not have any unappropriated Parliamentary Service did not receive any capital cash capital, or expenditure in 2018 (2017: nil). injections during the year without, or in excess of authority in 2018 (2017: nil).
Parliamentary Service received a $4.4 million non-cash capital injection as a result of a transfer of library assets from the Crown in 2017.
Statement of departmental expenses and capital expenditure against appropriations as at 30 June 2018
Unaudited Revised Actual Actual Budget Budget 2017 2018 2018 2018 $000 $000 $000 $000 Departmental output expenses 205 Support Services to the Speaker 341 425 432 205 Total departmental output expenses 341 425 432
Multi-Category Appropriations Parliamentary information communications 16,474 17,820 17,456 17,645 and technology services 27,578 Building and operations management 26,504 28,731 27,146 5,110 Parliamentary library 5,513 4,916 5,543 Personnel, accounting and advisory services to members 8,945 9,715 9,292 10,510 and other parliamentary agencies 58,107 Total multi-category appropriations 59,552 60,395 60,844
58,312 Balance at 30 June 2018 59,893 60,820 61,276
Parliamentary Service - capital expenditure 4,679 Permanent legislative authority 4,694 5,111 5,671 48 Parliamentary Service Annual Report Financial Statements 30 June 2018
Notes to the financial statements
Note 1 Statement of accounting policies
Reporting entity Impairment of revalued assets Parliamentary Service (the “Service”) is a Government In April 2017, the XRB issued Impairment of Revalued Department as defined by the Public Finance Act 1989 Assets, which now clearly scopes revalued property, plant, (PFA) and is domiciled and operates in New Zealand. The and equipment into the impairment accounting standards. relevant legislation governing the Service’s operations Previously, only property, plant, and equipment measured at includes the PFA and the Parliamentary Service Act 2000. cost were scoped into the impairment accounting standards. The Service’s ultimate parent is the New Zealand Crown. Under the amendment, a revalued asset can be impaired In addition, the Service has reported on Crown activities without having to revalue the entire class-of-asset to which that it administers. the asset belongs. This amendment is effective for the 30 June 2020 financial statements, with early adoption permitted. The Service’s primary objective is to provide services to The timing of the Service adopting this amendment will members of Parliament and other agencies rather than be guided by the Treasury’s decision on when the Financial making a financial return. Statements of the Government will adopt the amendment.
The Service has designated itself as a public benefit entity Financial instruments (PBE) for financial reporting purposes. In January 2017, the XRB issued PBE IFRS 9 Financial Instruments. This replaces PBE IPSAS 29 Financial Instruments: The financial statements of the Service are for the year ended Recognition and Measurement. PBE IFRS 9 is effective for 30 June 2018. The financial statements were authorised for financial years beginning on or after 1 January 2021, with issue by the General Manager on 28 September 2018. earlier application permitted. The main changes under the standard relevant to the Service are: Basis of preparation The financial statements have been prepared on a going • New financial asset classification requirements for concern basis, and the accounting policies have been determining whether an asset is measured at fair value applied consistently throughout the period. or amortised cost. • A new impairment model for financial assets based Measurement base on expected losses, which might result in the earlier The financial statements have been prepared on a historical recognition of impairment losses. cost basis. The Treasury has decided that the Financial Statements of Statement of compliance the Government will early adopt PBE IFRS 9 for the 30 June The financial statements of the Service have been prepared 2019 financial year. The Service will also early adopt PBE pursuant to the Public Finance Act 1989, which include IFRS 9 for the 30 June 2019 financial year to be consistent the requirement to comply with New Zealand generally with Crown’s accounting policy for financial instruments. accepted accounting practice (NZ GAAP), and Treasury The Service has not yet assessed in detail the impact of the Instructions. new standard. Based on an initial assessment, the Service anticipates that the standard will not have a material effect The financial statements have been prepared in accordance on the Service’s financial statements. and compliance with Tier 1 PBE accounting standards. Interests in other entities Standards issued and not yet effective and not early In January 2017, the XRB issued new standards for interests adopted in other entities (PBE IPSAS 34 - 38). These new standards Standards and amendments, issued but not yet effective replace the existing standards for interests in other entities that have not been early adopted, and which are relevant (PBE IPSAS 6 - 8). The new standards are effective for annual to the Service are: periods beginning on or after 1 January 2019, with early application permitted. 49
The Service plans to apply the new standards in preparing Cost allocation policy the 30 June 2020 financial statements. The Service has not The Service has determined the cost of outputs using the yet assessed the effects of these new standards. cost allocation system outlined below:
Presentation currency and rounding • Direct costs are those costs directly attributed to an The financial statements are presented in New Zealand output. Direct costs are charged directly to outputs. dollars and all values are rounded to the nearest thousand • Indirect costs are those costs that cannot be identified dollars ($000). The functional currency of the Service is in an economically feasible manner with a specific New Zealand dollars. output. Indirect costs are charged to outputs based on cost drivers and related activity or usage information. Significant accounting policies • Depreciation and capital charge are charged on the Significant Accounting policies are included in the notes to basis of asset utilisation. which they relate. • Personnel costs are charged based on actual time incurred. Goods and services tax (GST) • General Manager’s Costs are considered to be The Financial Statements, including appropriation indirect costs and are allocated to the different areas of statements, are exclusive of GST, except for Creditors and the business based on spend patterns. Debtors, which are GST inclusive. All other statements and notes are GST exclusive. Critical accounting estimates and assumptions In preparing these financial statements, estimates and The amount of GST owing to or from the Inland Revenue assumptions have been made concerning the future. These Department at balance date, being the difference between estimates and assumptions may differ from the subsequent Output GST and Input GST, is included in Creditors or actual results. Estimates and assumptions are continually Debtors, as appropriate. evaluated and are based on historical experience and other factors, including expectations of future events that are Commitments and contingencies are disclosed excluding believed to be reasonable under the circumstances. GST. The estimates and assumptions that have a significant risk Income tax of causing a material adjustment to the carrying amounts The Service is a public authority and consequently is of assets and liabilities within the next financial year are exempt from the payment of income tax in terms of the referred under the relevant notes. Income Tax Act 2007. Accordingly, no provision for income tax has been made. Forecast policies The forecast has been compiled on the basis of existing government policies and ministerial expectations at the time the statements were finalised. They reflect all government decisions at the date the information was prepared. Whilst Parliamentary Service regularly updates its forecasts, updated forecast financial statements for the year ending 30 June 2019 will not be published. 50 Parliamentary Service Annual Report Financial Statements 30 June 2018
Note 2: Departmental and other revenue
Unaudited Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 $000 $000 $000 $000
2,691 ICT services including network support 2,445 2,465 2,427 2,362 1,960 Services to the Office of the Clerk 2,076 2,092 2,062 2,007 173 Services to the Parliamentary Counsel Office 219 221 218 212 1,307 Rental revenue 1,467 1,478 1,457 1,418 151 Parliament shop trading 35 35 35 34 71 Services to other agencies 51 51 51 49 1,430 Other 163 163 162 158 7,783 Total departmental and other revenue 6,456 6,505 6,412 6,240
6,174 Departmental revenue 6,055 5,906 6,006 5,834 1,609 Other revenue 401 599 406 406 7,783 Total departmental and other revenue 6,456 6,505 6,412 6,240
Revenue Crown transactions are considered to Other revenues be non-exchange transactions. Revenue Crown Departmental revenue: revenue received from other is measured based on Parliamentary Service’s government departments in exchange for service provided. funding entitlement for the reporting period. The funding entitlement is established by Parliament when it passes the Sale of services: the sale of services is recognised in the Appropriation Acts for the financial year. The amount of accounting period in which the services are provided. revenue recognised takes into account any amendments to appropriations approved in the Appropriation Rental revenue from sub-leasing: rental revenue under an (Supplementary Estimates) Act for the year and certain other operating sublease is recognised as revenue on a straight- unconditional funding adjustments formally approved prior line basis over the lease term. to balance date.
There are no conditions attached to the funding from the Crown. However, Parliamentary 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. 51
Note 3: Personnel costs
Unaudited Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 $000 $000 $000 $000 22,165 Salaries and wages 23,070 17,430 23,173 23,175 Employer contribution to defined 203 197 181 205 205 contribution plans* 100 Increase/(Decrease) in employee entitlements 319 389 150 150 59 Other 36 63 63 64
22,527 Total personnel costs 23,622 18,063 23,591 23,594
* 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 contributions to determine from the terms of the scheme the extent to to the State Sector Retirement Savings Scheme, Kiwi Saver which the surplus or deficit will affect future contributions and the Government Superannuation Scheme (GSF) are by individual employers, as there is no prescribed basis for accounted for as defined contribution superannuation allocation. The Service has employees who are members schemes and are recognised as an expense in the surplus or of the Government Superannuation Fund. This is a fully deficit as incurred. funded Government scheme and as a result no liability is recognised. The scheme is therefore accounted for as a Defined benefit schemes: the Service belongs to the GSF. GSF defined contribution scheme. is a defined benefit plan. Insufficient information is available to use defined benefit accounting; as it is not possible 52 Parliamentary Service Annual Report Financial Statements 30 June 2018
Note 4: Capital charge The capital charge for the year ended 30 June 2018 was $1.8 million (2017 $1.8 million) at the rate of 6% (2017: 7% from 1 July 2016 to 31 December 2016, then 6% from 1 January 2017 to 30 June 2017).
Capital charge is an expense based on the Crown’s investment in Parliamentary Service. The expense is 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.
Note 5: Other expenses Unaudited Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 $000 $000 $000 $000 117 Fees to Auditor for audit of financial statements 118 117 118 118 4,767 Operating lease rentals 5,059 4,758 5,000 5,000 1,553 Consultancy 1,074 1,422 1,550 1,550 7,963 Information technology costs 8,421 7,849 7,849 7,849 4,560 Maintenance 4,481 4,162 3,585 3,585 3,769 Premises costs & utilities 3,640 3,560 3,560 3,560 245 Restructuring costs 25 65 - - Net loss on disposal or property, plant, and 2 28 - - - equipment 6,142 Other expenses 6,982 14,088 9,272 8,148
29,118 Total other expenses 29,828 36,021 30,934 29,810
Note 6: Debtors and other receivables
Unaudited Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 $000 $000 $000 $000 9,530 Debtor Crown 13,111 10,730 9,530 9,530 422 Departmental 6 - 422 422 294 Other debtors 264 400 294 294
10,246 Total debtors and receivables 13,381 11,130 10,246 10,246 53
Debtor Crown reflects undrawn Revenue Crown Parliamentary Counsel Office and the Office of the Clerk. funding and is categorized as a non-exchange transaction; all other categories originate from The Service had not yet been reimbursed for these exchange transactions. payments at balance date. The carrying value of debtors and other receivables approximates their fair value. The Departmental receivables incorporate payments made aging profile of receivables at year end is detailed below: on behalf of Parliamentary Service Crown activity, the
Actual Actual 2017 2018 $000 $000 10,201 Not past due 13,368 8 Past due 1-30 days 7 37 Past due over 30 days 6
10,246 Total 13,381
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
Actual Actual 2017 2018 $000 $000 Held for distribution 26 Inventories held for use in the provision of goods and services 57
26 Total inventory 57
Inventory consists of computer equipment. Inventory No inventories are pledged as security for liabilities or subject is carried at the lower of cost or net realisable value. to retention of title clauses. The Parliamentary Service applies a weighted average cost formula. Inventory is tested for impairment annually.
Inventory held for distribution or consumption in the The amount of any write-down for the loss of service potential provision of services are measured at cost adjusted, or from cost to net realisable value is recognised in the surplus when applicable, for any loss of service potential. The or deficit in the period of the write-down 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). 54 Parliamentary Service Annual Report Financial Statements 30 June 2018
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 2016 3,566 11,388 1,592 21,188 126 4,791 759 - 618 44,028 Additions ------1,765 1,765 Transfers from Crown ------4,394 - 4,394 Work in progress - 797 138 984 - 8 - 93 (2,020) - Adjustments - - - - 1 - - (1) - - Disposals (2) (4,104) (73) (152) - (3) - - - (4,334)
Balance at 30 June 2017 3,564 8,081 1,657 22,020 127 4,796 759 4,486 363 45,853
Balance at 1 July 2017 3,564 8,081 1,657 22,020 127 4,796 759 4,486 363 45,853 Additions - 30 5 65 164 - 18 - 1,764 2,046 Work in progress 106 239 - 241 - 214 239 94 (1,133) - Disposals (14) (83) (78) (119) (148) - (8) (450)
Balance at 30 June 2018 3,656 8,267 1,584 22,207 143 5,010 1,008 4,580 994 47,449
Accumulated depreciation and impairment losses
Balance at 1 July 2016 (3,424) (10,628) (1,413) (13,941) (42) (4,588) (748) - - (34,784)
Depreciation expense (32) (529) (113) (1,547) (145) (5) (101) - (2,497) (25) Adjustments - (2) ------(2)
Eliminate on disposal 2 4,104 71 152 - 3 - - - 4,332
Balance at 30 June 2017 (3,454) (7,055) (1,455) (15,336) (67) (4,730) (753) (101) - (32,951)
Balance at 1 July 2017 (3,454) (7,055) (1,455) (15,336) (67) (4,730) (753) (101) - (32,951)
Depreciation expense (22) (475) (66) (1,203) (28) (41) (52) (113) - (2,000) Adjustments (1) 3 (1) 1 (1) - - 1 - 2 Eliminate on disposal 14 83 78 119 80 - 8 - - 382
Balance at 30 June 2018 (3,463) (7,444) (1,444) (16,419) (16) (4,771) (797) (213) - (34,567)
Carrying amounts At 30 June 2016 142 760 179 7,247 84 203 11 - 618 9,244 At 30 June 2017 110 1,026 202 6,684 60 66 6 4,385 363 12,902 At 30 June 2018 193 823 140 5,788 127 239 211 4,367 994 12,882 55
Property, plant and equipment Valuation Property, plant, and equipment (PPE) consists of Revaluations are carried out for Library collections to reflect furniture, plant and equipment, office equipment, the service potential or economic benefit obtained through computers, motor vehicles, leasehold improvements, and control of the asset. Revaluation is based on the fair value of telecommunication equipment. PPE acquired through non- the asset with changes reported by class of asset. exchange transactions are measured at fair value at the date of acquisition. PPE is measured at cost, less accumulated Library collections are revalued at least every three years or depreciation and impairment losses. whenever the carrying amount differs materially to fair value. Unrealised gains and losses arising from changes in the value All property, plant and equipment costing more than $2,000 are recognised as at balance date and are debited or credited excluding GST is capitalised and recorded at historical cost. to the Revaluation Reserve.
Additions Accumulated depreciation at revaluation date is eliminated The cost of an item of property, plant, and equipment is against the gross carrying amount so that the carrying recognised as an asset if it is probable that future economic amount after revaluation equals the revalued amount. benefits or service potential associated with the item will flow to the Service and the cost of the item can be measured The carrying values of revalued assets are internally assessed reliably. by the Service on an annual basis to ensure that they do not differ materially from the assets’ fair values. If there is a material Work in progress is recognised at cost less impairment and is difference, then the off-cycle asset classes are revalued. not depreciated. The total cost of this work is transferred to Additions between revaluations are recorded at cost. the relevant asset category on its completion. The Library collections are valued at fair market value on a Disposals three yearly basis by independent registered valuers. The last Gains and losses on disposals are determined by comparing valuation was completed as at 12 February 2016 when these the disposal proceeds with the carrying amount of the asset. assets resided in Crown. Gains and losses on disposals are included in the statement of comprehensive revenue and expense. When a revalued Impairment of property, plant, and equipment asset is sold, the amount included in the revaluation reserve in Property, plant, and equipment that have a finite useful life respect of the disposed asset is transferred to taxpayers’ funds. are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be Subsequent costs recoverable. An impairment loss is recognised for the amount Costs incurred subsequent to initial acquisition are capitalised by which the asset’s carrying amount exceeds its recoverable only when it is probable that future economic benefits or amount. The recoverable amount is the higher of an asset’s service potential associated with the item will flow to the fair value less costs to sell and value in use. Service and the cost of the item can be measured reliably. The costs of day to day servicing of property, plant and equipment Value in use is depreciated replacement cost for an asset are recognised in the statement of comprehensive revenue where the future economic benefits or service potential of and expense as they are incurred. the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the Service would, if Depreciation deprived of the asset, replace its remaining future economic Depreciation is provided on a straight-line basis on all benefits or service potential. property, plant, and equipment at rates that will write-off the cost of the assets to their estimated residual values over their If an asset’s carrying amount exceeds its recoverable amount, useful lives. the asset is impaired and the carrying amount is written down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss is recognised in the surplus or deficit. 56 Parliamentary Service Annual Report Financial Statements 30 June 2018
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 3 - 34 years property improvements 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 unexpired Assets are purchased on behalf of members of Parliament period of the lease or the estimated remaining useful lives of including for their out-of-Parliament offices. The useful the improvements, whichever is the shorter. life and associated depreciation rates for these assets are aligned to the Parliamentary term or the remainder of the The residual value and useful life of an asset is reviewed, and Parliamentary term. adjusted if applicable, at each financial year-end.
A three year review of the Parliamentary Service’s Library collections have been categorised as: Crown Library’s collections was completed in 2016. This review identified a large amount of • Cartography material that was no longer deemed useful in providing • Monographs information, research, and reference services to members • Newspapers and parliamentary staff. This material was being offered to • NZ Parliamentary Publications suitable locations including the National Library and other • Overseas Parliamentary publications libraries. This resulted in the relevant revaluation reserves • Reference collections and to written down completely. The collection remaining in • Serial collections. Crown ownership was valued by an independent expert valuer Webb’s as at 12 February 2016. Of these, only Monographs and Serial collections have been classified as depreciating assets. The rest of the During the 2016/17 year, $4.4m of the remaining Library collection items are rare and valuable and classified as non- collection in Crown were identified as Departmental depreciating assets. collection items and subsequently transferred to Parliamentary Service Department during the October baseline update. 57
Note 9: Intangibles
Internally Acquired generated Work in all units $000 Software software Progress Total Cost or valuation Balance at 1 July 2016 12,840 1,480 1,864 16,184 Additions - - 2,914 2,914 Transfers from work in progress 49 1,751 (1,800) - Disposals (1,683) (25) - (1,708) Balance at 30 June 2017 11,206 3,206 2,978 17,390
Balance at 1 July 2017 11,206 3,206 2,978 17,390 Additions - - 2,649 2,649 Transfers from work in progress 265 2,791 (3,056) - Disposals (1) (170) - (171) Balance at 30 June 2018 11,470 5,827 2,571 19,868
Accumulated Amortisation and Impairment losses Balance at 1 July 2016 (8,261) (647) - (8,908) Amortisation expense (1,709) (629) - (2,338) Eliminate on disposal 1,683 25 - 1,708 Balance at 30 June 2017 (8,287) (1,251) - (9,538)
Balance at 1 July 2017 (8,287) (1,251) - (9,538) Amortisation expense (1,458) (1,181) - (2,639) Eliminate on disposal 1 122 - 123 Balance at 30 June 2018 (9,744) (2,310) - (12,054)
Carrying amounts At 30 June 2016 4,579 833 1,864 7,276 At 30 June 2017 2,919 1,955 2,978 7,852 At 30 June 2018 1,726 3,517 2,571 7,814 58 Parliamentary Service Annual Report Financial Statements 30 June 2018
Software acquisition and development: computer Costs associated with maintaining computer software are software licenses are capitalised based on the costs recognised as an expense when incurred. Costs of software incurred to acquire and bring to use the specific updates or upgrades are only capitalised when they increase software. the usefulness or value of the software.
Costs that are directly associated with the development of Amortisation: the carrying value of an intangible asset with a software for internal use by the Service are recognised as finite life is amortised on a straight-line basis over its useful an intangible asset. Direct costs can include the software life. Amortisation begins when the asset is available for use development, employee costs, and an appropriate portion and ceases at the date that the asset is derecognised. The of relevant overheads. Staff training costs are recognised as amortisation charge for each period is recognised in the an expense when incurred. surplus or deficit.
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 Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 $000 $000 $000 $000 Creditors and other payables under exchange transactions 625 Trade creditors 181 220 660 660 3,119 Accrued expenses 3,401 3,295 3,120 3,120
3,744 Total under exchange transactions 3,582 3,515 3,780 3,780 Creditors and other payables under non- exchange transactions 1 Accrued FBT expense - - - - 83 GST payable (receivable) 133 250 96 96
84 Total under non-exchange transactions 133 250 96 96 3,828 Total creditors and other payables 3,715 3,765 3,876 3,876
Creditors and other payables are non-interest bearing and are normally settled on 30-day terms. Therefore, the carrying value of creditors and other payables approximates their fair 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. 59
Note 11: Provisions Employee entitlements
Unaudited Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 $000 $000 $000 $000 Current Liabilities 324 Retirement and long service leave 362 355 329 329 1,112 Annual leave 1,231 2,300 1,145 1,145 47 Sick leave 55 40 47 47
1,483 Total current portion 1,648 2,695 1,521 1,521 Non-current liabilities 676 Retirement and long service leave 830 607 688 688
676 Total non-current portion 830 607 688 688 2,159 Total employee entitlements 2,478 3,302 2,209 2,209
Short-term employee entitlements Long-term employee entitlements Employee benefits expected to be settled within 12 Employee benefits that are due to be settled beyond 12 months of balance date are measured at nominal months after the end of the reporting period in which the values based on accrued entitlements at current rates of employee renders the related service, such as long service pay. These include salaries and wages accrued up to balance leave and retiring leave, are calculated in accordance with date, annual leave earned but not yet taken at balance date, Treasury circular 2009/06. The calculations are based on: retiring and long service leave entitlements expected to be settled within 12 months, and sick leave. • likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that A liability for sick leave is recognised to the extent that staff will reach the point of entitlement, and contractual absences in the coming year are expected to be greater entitlements information; and than the sick leave entitlements earned in the coming year. • the present value of the estimated future cash flows. The amount is calculated based on the history of sick leave taken by all employees for the last three years to derive the Expected future payments are discounted using market average amount of accrued sick leave taken over and above yields on government bonds at balance date with terms to the entitlement for the year. maturity that match, as closely as possible, the estimated future cash outflows for entitlements. The inflation factor is based on the expected long-term increase in remuneration for employees. 60 Parliamentary Service Annual Report Financial Statements 30 June 2018
The value of long service leave, retirement leave and sick leave as at 30 June 2018 have been calculated in accordance with Treasury circular 2009/06. The major economic long term assumptions adopted in the valuation process for long service and retirement leave were:
Salary increase rate 3.10% p.a. 2017: 3.00% Discount rate 3.55% p.a. 2017: 3.92%
For sick leave, the methodology was calculated according to Treasury guidance and assumes that sick leave is a short-term compensated absence, as defined in PBE IPSAS 25.
Note 12: Return of operating surplus
Actual Actual 2017 2018 $000 $000 1,459 Net surplus 1,398 1,459 Total return of operating surplus 1,398
The operating surplus is to be paid to the Crown by 31 October 2018.
Note 13: Taxpayers’ funds
Actual Actual 2017 2018 $000 $000 26,156 Balance at 1 July 2017 30,550 1,459 Surplus for year 1,398 Owner transactions - Capital contribution - cash 1,000 4,394 Capital contribution - non cash - (1,459) Return of operating surplus to the Crown (1,398)
30,550 Balance at 30 June 2018 31,550 61
Note 14: Related party transactions
Key management personnel remuneration
Actual Actual 2017 2018 $000 $000 Leadership Team, including Chief Executive 1,642 Remuneration 1,706 7 Full time equivalent staff 7
There are no other employee benefits. Key management personnel include the General Manager and six members of the Senior Management Team, 7 FTE’s (2017: 7 FTE’s).
The Service is a wholly owned entity of the Crown.
Related party disclosures have not been made for Significant transactions with government-related transactions with related parties that are: entities The Service has received funding from the Crown of • within a normal supplier or client/recipient $61m (2017: $58m) to provide services to the public, relationship; and House of Representatives and support services and/or • on terms and conditions no more or less favourable accommodation to other government agencies, as part of than those that it is reasonable to expect the Service a Service Level Agreement, for the year ended 30 June 2018. would have adopted in dealing with the party at arm’s These agencies are:- 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 between government agencies and undertaken on the normal terms and conditions for such transactions. 62 Parliamentary Service Annual Report Financial Statements 30 June 2018
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 Revised Actual Actual Budget Budget Forecast 2017 2018 2018 2018 2019 $000 $000 $000 $000 $000 Financial assets measured at amortised costs Loans and receivables 5,563 Cash and cash equivalents 4,022 4,295 4,443 9,240 10,246 Receivables 13,381 11,130 10,246 10,246 15,809 Total loans and receivables 17,403 15,425 14,689 19,486
Financial liabilities measured at amortised costs 625 Creditors and other payables 181 220 660 660
15B - Financial instruments risks
The Service is party to financial instrument value of the non-Government debtors i.e. $0.3m (2017: arrangements as part of its everyday operations. $0.3m). Default is considered by management to be These include instruments such as bank balances, unlikely and the probable exposure has been determined as accounts receivable, and accounts payable. The fair value of negligible. There were no changes in receivables or payables the Service’s financial instruments is the same as the carrying during the year that can be attributed to credit risk. value. The Service is only permitted to deposit funds with Westpac The Service does not have any gains or losses on its financial Banking Corporation (Westpac), a registered bank, and instruments and no impairments have been recognised to enter into foreign exchange forward contracts with the New date. Zealand Debt Management Office (NZDMO).
All financial assets and liabilities are non-derivative in form and The Service does not require any collateral or security to function and are neither available for sale nor held to maturity. support financial instruments with financial institutions that it deals with, or with the NZDMO, as these entities have The fair value of the financial instruments are deemed not high credit ratings. For its other financial instruments, the materially different from valuation at amortised cost. As a Service does not have significant concentrations of credit result, the carrying value of the instruments is at fair value. risk. The Service is not exposed to any other concentrations of credit risk. Credit risk Credit risk is the risk that a third party will default on its Credit facilities obligations to the Service, causing the Service to incur a loss. The Service does not have bank overdraft facilities as at 30 June 2018. In the normal course of its business, credit risk arises from debtors. The maximum exposure from trade debtors is the 63
Liquidity risk Liquidity risk is the risk that the Service will encounter Office. The Service maintains a target level of available cash difficulty raising liquid funds to meet commitments as they to meet liquidity requirements. fall due. The Service considers that it does not have a significant In meeting its liquidity requirements, the Service closely liquidity risk as it ensures it has adequate working capital monitors its forecast cash requirements with expected cash coverage at all times. drawdowns from the New Zealand Debt Management
Note 16: Capital management
The Service’s capital is its equity (or taxpayers’ funds), which the Government budget processes, the Public Finance Act comprise general funds. Equity is represented by net assets. 1989 and Treasury Instructions.
The Service manages its revenues, expenses, assets, liabilities, The objective of managing the Service’s equity is to ensure and general financial dealings prudently. The Service’s the Service effectively achieves its goals and objectives for equity is largely managed as a by-product of managing which it has been established, whilst remaining a going revenue, expenses, assets, liabilities and compliance with concern.
Note 17: Events after balance date There were no significant events after balance date (2017: nil).
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 $60.8 million Total Assets are higher than Budget by $1.5 million as a was revised to $61.3 million, an increase by $0.5 million. The result of the following key items: increase is largely due to an in-principle expense transfer moving funding from 2016/17 to 2017/18. This related to • Debtor Crown: increased significantly when compared delays in the projects outside of the Service’s control. to revised budget. This is due to delays in projects outside the Service’s control. An in-principle expense Actual expenditure is $1.4 million below the revised budget. transfer has been approved to transfer underspend This is due to delays in programmes of work outside of the from 2017/18 to 2018/19. Service’s control relating to: • Non-current assets comprising of property, plant and • Depreciation and amortisation expense due to delays equipment and intangibles assets: lower than revised in capital projects. budget due to delays in capital projects. • Out-of-Parliament office security • Members of Parliament (Remuneration and Services) Act review • Migration to the cloud • Cyber security 64 Parliamentary Service Annual Report Financial Statements 30 June 2018 65
Financial Statements Parliamentary Service Crown For the year ended 30 June 2018 66 Parliamentary Service Annual Report Financial Statements 30 June 2018
Non-departmental statements and schedules for year ended 30 June 2018
The following non-departmental statements and schedules record the revenue, expenses, assets, liabilities, commitments and contingent liabilities that the Parliamentary Service manages on behalf of the Crown.
Schedule of non-departmental revenue for year ended 30 June 2018
Unaudited Revised Actual Actual Budget1 Budget2 2017 2018 2018 2018 $000 $000 $000 $000
15 Revenue 15 - - 15 Total non-departmental revenue 15 - -
The notes to the accounts form part of and are to be read in conjunction with these financial statements.
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 2018.
1 Budget 2018 figures are those numbers reported in the 2017 Estimates of Appropriations. 2 Revised Budget 2018 figures are adjusted Budget 2018 figures as reported in the 2018 Supplementary Estimates of Appropriation. 67
Non-departmental statements and schedules Schedule of non-departmental expenses for year ended 30 June 2018 for the year ended 30 June 2018
Unaudited Revised Actual Actual Budget Budget 2017 2018 2018 2018 $000 $000 $000 $000
Expenses Other expenses incurred by the Crown 17,978 Annual 23,127 24,675 28,229 62,163 Other 58,877 67,746 69,743 80,141 Sub total 82,004 92,421 97,972 3,699 GST expensed 3,105 5,000 5,000 83,840 Total non-departmental expenses 85,109 97,421 102,972
Schedule of non-departmental capital expenditure for the year ended 30 June 2018
Unaudited Revised Actual Actual Budget Budget 2017 2018 2018 2018 $000 $000 $000 $000
Capital Expenditure Purchases and development of capital assets by the Crown 1,400 Annual 2,080 9,900 2,140 5,458 Other 3,462 6,578 5,264 6,858 Total non-departmental capital expenditure 5,542 16,478 7,404
The notes to the accounts form part of and are to be read in conjunction with these financial statements.
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 2018. 68 Parliamentary Service Annual Report Financial Statements 30 June 2018
Schedule of non-departmental assets as at 30 June 2018
Unaudited Revised Actual Actual Budget Budget 2017 2018 2018 2018 $000 Notes $000 $000 $000
Current Assets 17,815 Cash and cash equivalents 2 6,911 7,837 27,951 10 Debtors 2 & 3 26 15 10 64 Prepayments 3 15 100 64 17,889 Total current assets 6,952 7,952 28,025 Non-current assets 468,581 Property, plant and equipment 4 463,201 461,306 458,445 486,470 Total non-departmental assets 470,153 469,258 486,470
The notes to the accounts form part of and are to be read in conjunction with these financial statements.
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 2018. 69
Schedule of non-departmental assets Schedule of non-departmental liabilities and as at 30 June 2018 revaluation reserves as at 30 June 2018
Unaudited Revised Actual Actual Budget Budget 2017 2018 2018 2018 $000 Notes $000 $000 $000
Liabilities Current liabilities 3,399 Creditors 2 & 7 3,253 3,150 3,399 1,388 Employee entitlements 811 1,838 1,388 4,787 Total current liabilities 4,064 4,988 4,787 Revaluation reserve
63,000 Land revaluation reserve 5 63,000 63,000 63,000 212,769 Building revaluation reserve 5 212,769 212,769 212,769 11,410 Antique and art revaluation reserve 5 11,410 7,366 11,410 287,179 Total revaluation reserve 287,179 283,135 287,179
Total non-departmental liabilities and 291,966 291,243 288,123 291,966 revaluation reserve
The notes to the accounts form part of and are to be read in conjunction with these financial statements.
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 2018. 70 Parliamentary Service Annual Report Financial Statements 30 June 2018
Statement of non-departmental commitments for the year ended 30 June 2018
There are no non-departmental operating commitments (2017: 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.
Actual Actual 2017 2018 $000 $000
Capital commitments 2,663 Buildings 7,294 2,663 Total capital commitments 7,294
Commitments are future expenses and liabilities to be incurred on contracts that have been entered into as at balance date. Information on non-cancellable capital and lease commitments are reported in the statement of commitments. Cancellable capital commitments that have penalty or exit costs explicit in the agreement on exercising that option to cancel are reported in the statement of commitments at the lower of the remaining contractual commitment and the value of those 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 2018
Quantifiable contingent liabilities
Actual Actual 2017 2018 $000 $000
Contingent liability 230 Members' superannuation 200 230 Total contingent liability 200
Contingent assets The Service on behalf of the Crown has no contingent assets (2017: nil
The notes to the accounts form part of and are to be read in conjunction with these financial statements.
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 2018. 71
Notes to the non-departmental financial statements
Note 1: Statement of accounting policies
Reporting entity Significant accounting policies These non-departmental schedules and statements present Significant accounting policies are included in the notes to financial information on public funds managed by the which they relate. Parliamentary Service on behalf of the Crown. Further details of the department’s management of these Crown assets and Goods and Services Tax liabilities are provided in the output performance sections of All items in the financial statements, including appropriation this report. These non-department balances are consolidated statements, are stated exclusive of Goods and Services into the Financial Statements of the Government for the year Tax (GST), except for receivables and payables, which are ended 30 June 2018. 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 the deduction is not claimed on non-departmental expenditure. 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 financial statements have been prepared on a historical Financial Statements of the Government. cost 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. 72 Parliamentary Service Annual Report Financial Statements 30 June 2018
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:
Actual Actual 2017 2018 $000 $000
Cash and debtors 17,815 Cash and cash equivalents 6,911 10 Debtors 26 17,825 Total Cash and debtors 6,937
Financial liabilities measured at amortised cost 1,368 Creditors 1,315
The Crown does not have any gains or losses on its financial instruments and no impairments have been recognised to date. The fair value of the financial instruments is deemed not materially different from valuation at amortised cost. As a result, the carrying value of the instruments is at fair value.
2B – Financial instrument risks collateral or security to support financial instruments with The Service is party to financial instrument arrangements as financial institutions that it deals with, as this entity has high part of its everyday operations. These include instruments credit ratings. For its other financial instruments, the Service such as bank balances, accounts receivable and accounts does not have significant concentrations of credit risk. payable. The fair value of the Service’s financial instruments is the same as the carrying value. The Service is not exposed to any other concentrations of risk. The Service does not have any gains or losses on its financial instruments and no impairments have been recognised to Credit facilities date. All financial assets and liabilities are non-derivative in The Service does not have bank overdraft facilities as at 30 form and function and are neither available for sale nor held June 2018. to maturity. The fair value of the financial instruments is deemed not materially different from valuation at amortised Liquidity risk cost. As a result the carrying value of the instruments is at Liquidity risk is the risk that the Service will encounter fair value. difficulty raising funds to meet commitments as they fall due. In meeting its liquidity requirements, the Service closely Credit risk monitors its forecast cash requirements with expected cash Credit risk is the risk that a third party will default on its drawdowns from the NZDMO. The Service maintains a target obligations to the Service, causing the Service to incur a loss. level of available cash to meet liquidity requirements. The In the normal course of its business, the Service’s credit risk Service considers that it does not have a significant liquidity arises from debtors however there is no exposure from non- risk as it ensures it has adequate working capital coverage Government debtors in trade debtors this year (2017: nil). at all times. There were no changes in receivables or payables during the year that can be attributed to credit risk. Exposure to risk The Service is not aware of any exposure to risk regarding The Service is permitted to deposit funds only with Westpac, financial instruments that would have a significant impact a registered bank. The Service is not required to provide any on operations. 73
Note 3: Debtors and prepayments
Actual Actual 2017 2018 $000 $000
Debtors and prepayments - exchange transactions 10 Debtors 26 64 Prepayments 15 74 Total debtors and prepayments - exchange transactions 41
Debtors are initially recorded at fair value, and are use of an allowance account, and the amount of the loss is subsequently measured at amortised cost using the recognised in the schedule of non-departmental expenses. effective method less any provision for impairment. When a debtor is uncollectible, it is written off against the A provision for impairment of debtors is established when allowance account for debtors. Overdue debtors that are there is evidence that the Service will not be able to collect renegotiated are reclassified as current (i.e. not past due). all amounts due according to the original terms. The amount of the impairment is the difference between the asset’s Significant financial difficulties of the debtor, probability carrying amount and the present value of estimated future that the debtor will enter into bankruptcy, and default in cash flows, discounted using the original effective interest payments, are considered indicators that the debtor is likely rate. The carrying amount of the asset is reduced through the to be impaired.
Note 4: Property plant and equipment
Antiques Plant and and art Library Work in Cost or valuation Land Buildings Furniture equipment collection collection progress Total all units $000’s Balance at 1 July 2016 100,000 340,498 13,643 2,904 12,339 4,745 11,064 485,193
Additions - - - - 15 - 6,856 6,871
Transfers from work in progress - 10,704 167 3,517 - - (14,388) -
Adjustments - - - - - 1 - 1
Revaluation increase/(decrease) - - - - 4,044 - - 4,044
Transfers to Department - - - - - (4,394) - (4,394)
Balance at 30 June 2017 100,000 351,202 13,810 6,421 16,398 352 3,532 491,715
Balance at 1 July 2017 100,000 351,202 13,810 6,421 16,398 352 3,532 491,715
Additions - - - - 15 - 4,127 4,142
Transfers from work in progress - 4,525 47 761 - - (5,333) -
Adjustments - - (1) - 1 - - -
Balance at 30 June 2018 100,000 355,727 13,856 7,182 16,414 352 2,326 495,857 74 Parliamentary Service Annual Report Financial Statements 30 June 2018
Antiques Plant and and art Library Work in Cost or valuation Land Buildings Furniture equipment collection collection progress Total all units $000’s Balance at 1 July 2016 - - (13,493) (517) - - - (14,010)
Depreciation expense - (8,718) (29) (377) - - - (9,124)
Balance at 30 June 2017 - (8,718) (13,522) (894) - - - (23,134)
Balance at 1 July 2017 (8,718) (13,522) (894) - - - (23,134)
Depreciation expense - (8,909) (31) (582) - - - (9,522)
Balance at 30 June 2018 - (17,627) (13,553) (1,476) - - - (32,656)
Carrying amounts At 30 June 2016 100,000 340,498 150 2,387 12,339 4,745 11,064 471,183 At 30 June 2017 100,000 342,484 288 5,527 16,398 352 3,532 468,581 At 30 June 2018 100,000 338,100 303 5,706 16,414 352 2,326 463,201
Property, plant and equipment consists of the Classes of property, plant and equipment that are revalued following classes of assets: land, buildings, furniture, are revalued at least every three years or whenever the plant and equipment, antiques and art, and Library carrying amount differs materially to fair value. Unrealised collections. gains and losses arising from changes in the value of property, plant and equipment are recognised as at balance The initial cost of property, plant and equipment is the value date and are debited or credited to the Revaluation Reserve. of the consideration given to acquire or create the asset and any directly attributable costs of bringing the asset to Accumulated depreciation at revaluation date is eliminated working condition for its intended use. against the gross carrying amount so that the carrying amount after revaluation equals the revalued amount. All property, plant and equipment costing more than $2,000 are capitalised and recorded at historical cost. Land and buildings are valued on a three-yearly basis by independent registered valuers to ensure that the carrying Capital work in progress amounts do not differ materially from the assets’ fair value. Capital work in progress is not depreciated. The total cost of Land is valued at current market value, with reference to this work is transferred to the relevant asset category on its its highest and best use, subject to its current zoning and completion. heritage designation. Buildings are valued at depreciated replacement cost less allowance for physical deterioration, Depreciation optimisation and relevant surplus capacity. The most recent Depreciation of property, plant and equipment is provided valuation of land and buildings was undertaken as at 30 on a straight-line basis to allocate the cost of assets, less any June 2016. estimated residual value, over their useful lives. The carrying values of revalued assets are internally Valuation assessed by the Service on an annual basis to ensure that Revaluations are carried out for a number of classes of they do not differ materially from the assets’ fair values. property, plant and equipment to reflect the service If there is a material difference, then the off-cycle asset potential or economic benefit obtained through control of classes are revalued. Additions between revaluations are the asset. Revaluation is based on the fair value of the asset recorded at cost. with changes reported by class of asset. 75
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 31 May 2017. Value in use is the depreciated replacement cost for an asset The Library collections are valued at fair market value on a where the future economic benefits or service potential of three yearly basis by independent registered valuers. The last the asset are not primarily dependent on the asset’s ability valuation was completed as at 12 February 2016. to generate net cash inflows and where the Service would, if deprived of the asset, replace its remaining future economic Additions benefits or service potential. In most instances, an item of property, plant and equipment is initially recorded at its cost. Where an asset is acquired If an asset’s carrying amount exceeds its recoverable amount, through a non-exchange transaction, it is recognised at its the asset is impaired and the carrying amount is written fair value as at the date of acquisition. down to the recoverable amount. For revalued assets, the impairment loss is recognised against the revaluation Disposals reserve for that class of asset. Where that results in a debit Gains and losses on disposals are determined by comparing balance in the revaluation reserve, the balance is recognised the proceeds with the carrying amount of the asset. Gains in the surplus or deficit. and losses on disposal are included in the schedule of revenue and expenses. When revalued assets are sold, the For assets not carried at a revalued amount, the total amounts included in asset revaluation reserves in respect impairment loss is recognised in the surplus or deficit. of those assets are transferred to the schedule of non- Departmental liabilities and revaluation reserve. The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent Impairment of property, plant, and equipment that an impairment loss for that class of asset was previously Property, plant and equipment that have a finite useful life recognised in the surplus or deficit, a reversal of the are reviewed for impairment whenever events or changes impairment loss is also recognised in the surplus or deficit. in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the For assets not carried at a revalued amount, the reversal of amount by which the asset’s carrying amount exceeds its an impairment loss is recognised in the surplus or deficit. recoverable amount.
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 76 Parliamentary Service Annual Report Financial Statements 30 June 2018
Note 5: Revalued assets
Revalued assets – land and buildings Antique and art collections Land and buildings were valued as at 30 June 2016 by Antique and art collections were assessed at fair value as at registered valuer, Darroch Limited. 31 May 2017 by Dunbar Sloane Limited.
The asset valuation was completed in accordance with: Library • Public Benefit Entity International Public Sector A three year review of the Library’s collections was Accounting Standard 17: Property, Plant and Equipment completed in 2016. This review identified a large amount (PBE IPSAS 17) of material that was no longer deemed useful in providing • International Valuation Standards (IVS) and Property information, research, and reference services to members Institute of New Zealand (PINZ) standard and Parliamentary staff. This material was offered to suitable locations including the National Library and other libraries. The land has been assessed at market value at its highest This resulted in the relevant revaluation reserves being and best use, subject to its current zoning and heritage written down completely. The collection remaining in designation. In assessing the market value, land sales within Crown ownership was valued by an independent expert the general area have been considered as a starting point. valuer Webb’s as at 12 February 2016. The parliamentary site comprises a large land area, and hence adjustments have been made for location and size. During the 2016/17 year, $4.4m of the remaining collection in Crown were identified as departmental collection items The basis for the fair value assessment for the buildings is and subsequently transferred to Parliamentary Service depreciated replacement cost less allowance for physical Department during the October baseline update. The deterioration, optimisation and relevant surplus capacity, remaining Library collections in Crown are classified as rare as New Zealand International Accounting Standard (NZIAS and valuable and therefore not depreciated. 16) requires this for specialised assets. The buildings are considered specialised assets due to their size and scale and the absence of any directly comparable sales of similar properties as going concerns.
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
Actual Actual 2017 2018 $000 $000
Creditors under exchange transactions 1,368 Creditors 1,314 2,031 Accrued expenses 1,939 3,399 Total creditors - exchange transactions 3,253 77
Note 8: Related party transactions
Related party disclosures have not been made for agencies (for example, Government departments and Crown transactions with related parties that are within a normal entities) are not disclosed as related party transactions when supplier or client/recipient relationship on terms and they are consistent with the normal operating arrangements condition no more or less favourable than those that it is between government agencies and undertaken on the reasonable to expect the Service would have adopted normal terms and conditions for such transactions. in dealing with the party at arm’s length in the same circumstances. Further, transactions with other Government
Note 9: Post-balance date events
There we no significant events after balance date (2017: nil).
Non departmental appropriation statement
Unappropriated expenditure Capital Injections Parliamentary Service Crown did not incur any Parliamentary Service Crown did not receive any non- unappropriated operating or capital expenditure during departmental capital injections during the year without, or 2018 (2017: nil). in excess of authority in 2018 (2017: nil). 78 Parliamentary Service Annual Report Financial Statements 30 June 2018
Statement of budgeted and non-departmental actual expenses and capital expenditure incurred against appropriations for the year ended 30 June 2018
Unaudited Revised Actual Actual Budget Budget 2017 2018 2018 2018 $000 $000 $000 $000
Appropriations for non-departmental expenses to be incurred by the Crown3 9,125 Depreciation expense on parliamentary complex 9,522 14,000 14,000 3,118 Members' communications 3,393 3,380 3,394 1,103 Travel of former MPs 1,114 1,300 1,300 4,632 Travel of members and others 4,364 4,800 4,800 - Transitional Costs 1,194 1,195 1,195 - Write-off of capitalised expenditure 3,540 - 3,540
17,978 Annual appropriation 23,127 24,675 28,229
19,827 Members of the House of Representatives' salaries and allowances 21,018 22,000 22,000 2,707 Accommodation of members and travel of members' families 2,780 2,900 3,200
22,534 Appropriations under PLA 23,798 24,900 25,200
40,512 Total non-departmental expense appropriation 46,925 49,575 53,429
Appropriations for non-departmental capital expenditure to be incurred by the Crown4
1,400 Parliamentary Accommodation Strategy 2,080 9,900 2,140
1,400 Total annual capital expenditure appropriation 2,080 9,900 2,140
3 These appropriations are exempt from end-of-year performance information under s15D(2)(b)(ii) of the Public Finance Act 1989. 4 This appropriation is exempt from end-of-year performance information under s15D(2)(b)(iii) of the Public Finance Act 1989. 79
Multi Year Appropriations - for other expenses to be incurred by the Crown
The Service has multi-year appropriations (MYAs) for the immediate post-election period, qualifying electoral other expenses to be incurred by the Crown for parties candidates and former members, as allowed under directions to support their parliamentary operations during the 51st given by the Speaker. These appropriations commenced on 1 and 52nd Parliaments. This includes leaders’ offices, support October 2014 and expires on 30 September 2017 for the 51st staff, research operations, whips office, communications, Parliament. The 52nd Parliament appropriations commenced administrative and support services to members, and, during on 1 October 2017 and expire on 30 September 2020.
Unaudited Revised Actual Actual Budget Budget 2017 2018 2018 2018 $000 $000 $000 $000
Multi Year Appropriations for other expenses to be incurred by the Crown5 39 Additional support for members 15 300 340 350 Party and member support ACT 409 379 541 4,183 Party and member support Green 2,296 4,356 2,780 11,767 Party and member support Labour 11,959 13,330 15,122 676 Party and member support Maori 286 786 297 18,486 Party and member support National 17,839 19,354 22,247 3,858 Party and member support NZ First 2,167 3,962 2,846 270 Party and member support United Future 108 379 370 39,629 Total multi year expense appropriation 35,079 42,846 44,543
5These appropriations are exempt from end of year performance information under s15D(2)(b)(ii) of the Public Finance Act 1989. 80 Parliamentary Service Annual Report Financial Statements 30 June 2018
Details of multi-year appropriations - for other expenses to be incurred by the Crown
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 52nd Parliament MYAs $000 Members ACT Green Labour Maori National NZ First Future Appropriations Original appropriations 900 1,116 12,773 38,973 2,307 56,445 11,605 1,116 2017/18 adjustments - 437 (6,993) 3,772 (2,307) 8,620 (5,399) (1,116) Cumulative adjustments from previous year(s) ------Total adjusted appropriations as at 900 1,553 5,780 42,745 - 65,065 6,206 - 30 June 2018
Expenditure Cumulative expenditure from previous year(s) ------2017/18 actual expenditure 6 296 1,046 7,797 - 12,678 1,019 - Cumulative actual expenditure as at 6 296 1,046 7,797 - 12,678 1,019 - 30 June 2018
Appropriations remaining as at 894 1,257 4,734 34,948 - 52,387 5,187 - 30 June 2018
6Approved appropriations 225 391 1,449 10,789 - 16,401 1,564 - (Supplementary Estimates 17/18)
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 Suppor Support Support Support United 51st Parliament MYAs $000 members ACT Green Labour Maori National NZ First Future
Appropriations Original appropriations 900 1,349 11,655 34,984 3,300 51,097 6,563 1,025 2017/18 adjustments - - - (22) - (110) - - Cumulative adjustments from previous year(s) (600) (363) (11) 452 (1,233) 49 3,530 (40) Total adjusted appropriations as at 300 986 11,644 35,414 2,067 51,036 10,093 985 30 June 2018
Expenditure Cumulative expenditure from previous year(s) 185 836 10,313 31,080 1,770 45,190 8,811 616 2017/18 actual expenditure 9 113 1,250 4,162 286 5,161 1,148 108 Cumulative actual expenditure as at 194 949 11,563 35,242 2,056 50,351 9,959 724 30 June 2018
Appropriations remaining as at 106 37 81 172 11 685 134 261 30 June 2018
Approved appropriations (Supplementary 115 150 1,331 4,333 297 5,846 1,282 370 Estimates 17/18)
6 The term of the multi-year appropriation is for the term of the Parliament from 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. 81
Details of multi-year appropriations purchase or development of capital assets by the Crown
The Service has a multi-year appropriation for other expenses to be incurred by the Crown for minor 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.
Unaudited Revised Actual Actual Budget Budget 2017 2018 2018 2018 $000 $000 $000 $000
Purchase or development of capital assets by the Crown7 Crown Asset Management - Parliamentary complex - minor capital works 17,012 Original appropriation 17,012 17,012 17,012 - Cumulative adjustments from previous years (1,076) (1,076) (1,076) (1,076) Adjusted appropriation - - - 15,936 Total adjusted appropriation 15,936 15,936 15,936
- Cumulative actual expenditure at beginning of year 5,458 5,392 5,458 5,458 This year's actual expenditure 3,462 6,578 5,264 5,458 Cumulative actual expenditure 8,920 11,970 10,722
10,478 Appropriation remaining 7,016 3,966 5,214
7This appropriation has an exemption from year end performance reporting under s15D(2)(b)(ii) of the Public Finance Act 1989. 82 Parliamentary Service Annual Report Financial Statements 30 June 2018
Schedule on 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 2018 for which reimbursement requests were received by 8 August 2018. Claims received after this date will be disclosed in the 2018/19 Annual Report.
Total Expenses incurred for Total expenses incurred for Total expenses incurred for Name of Former Member International Air Travel Domestic Air Travel Rail, Road and Ferry Travel Total Hon Dame Margaret Ann Hercus 107 690 168 965 Hon Dame Annette King 1,184 1,289 2,472 Rt Hon Simon William (Bill) English 2,465 2,465 Brian MacDonell 3,882 3,882 Brian Neeson 2,440 2,440 Hon Christopher Carter 9,022 642 9,664 Hon Clive Matthewson 689 689 Dail Jones 1,825 297 2,123 Hon David Caygill 572 572 Hon Denis Marshall 909 909 Hon Derek Quigley 5,114 5,114 Rt Hon Sir Donald McKinnon 1,231 505 1,736 Hon Sir Douglas Kidd 5,171 730 56 5,957 Hon Dover Samuels 2,695 596 3,291 Hon Frances Wilde 5,817 5,817 Rt Hon Sir Geoffrey Palmer 4,559 4,559 Hon George Hawkins 581 581 Hon Graeme Lee 1,796 933 2,728 Graham Kelly 990 2,090 3,080 Hon Harry Duynhoven 8,487 701 9,189 Hon Hugh Templeton 220 220 Ian McLean 773 773 Ian Revell 5,389 5,389 Jeanette Fitzsimons 366 366 Marjorie Jill Pettis 1,299 275 1,575 Richard James Gerard 4,133 443 4,575 Hon Sir James McLay 4,427 200 4,626 Hon James Sutton 590 590 Hon John Banks 6,463 1,554 8,017 Hon John Carter 8,992 1,042 10,033 Hon Murray (John) Luxton 1,999 3,382 5,381 John Terris 1,924 680 2,604 Marilyn (Joy) Quigley 7,217 73 7,290 83
Total Expenses incurred for Total expenses incurred for Total expenses incurred for Name of Former Member International Air Travel Domestic Air Travel Rail, Road and Ferry Travel Total Hon Judith Tizard 8,014 443 8,457 Hon Kenneth Shirley 387 - 387 Hon Sir Thomas (Kerry) Burke 10,397 1,954 228 12,580 Hon Koro Wetere 3,533 3,533 Patricia (Elizabeth) Tennet 805 558 182 1,545 Rt Hon Dr Sir Alexander (Lockwood) Smith 7,457 2,489 9,946 Hon Margaret Austin 8,034 589 8,623 Hon Marian Hobbs 9,022 9,022 Hon Marie Hasler 191 191 Dr Marilyn Waring 1,202 1,202 Total Expenses incurred for Total expenses incurred for Total expenses incurred for Hon Richard (Mark) Burton 2,300 1,039 3,338 Name of Former Member International Air Travel Domestic Air Travel Rail, Road and Ferry Travel Total Hon Mark James Gosche 226 226 Hon Dame Margaret Ann Hercus 107 690 168 965 Mark Peck 3,152 1,229 4,381 Hon Dame Annette King 1,184 1,289 2,472 Hon Matthew Robson 7,217 348 7,565 Rt Hon Simon William (Bill) English 2,465 2,465 Hon Maurice McTigue 3,785 3,785 Brian MacDonell 3,882 3,882 Hon Maurice Williamson 5,222 5,222 Brian Neeson 2,440 2,440 Hon Maxwell Bradford 857 2,158 446 3,461 Hon Christopher Carter 9,022 642 9,664 Hon Dr Michael Bassett 3,208 771 3,979 Hon Clive Matthewson 689 689 Hon Dr Sir Michael Cullen 8,433 8,433 Dail Jones 1,825 297 2,123 Hon Murray McCully 6,567 416 6,983 Hon David Caygill 572 572 Rt Hon Paul East 1,429 1,823 3,253 Hon Denis Marshall 909 909 Hon Peter Hodgson 5,108 5,108 Hon Derek Quigley 5,114 5,114 Peter Brown 9,022 9,022 Rt Hon Sir Donald McKinnon 1,231 505 1,736 Hon Peter Dunne 6,509 2,009 8,518 Hon Sir Douglas Kidd 5,171 730 56 5,957 Hon Peter Gresham 856 856 Hon Dover Samuels 2,695 596 3,291 Hon Philip Burdon 3,896 3,896 Hon Frances Wilde 5,817 5,817 Philip Woollaston 2,230 2,230 Rt Hon Sir Geoffrey Palmer 4,559 4,559 Hon Phillida Bunkle 910 910 Hon George Hawkins 581 581 Richard Northey 268 268 Hon Graeme Lee 1,796 933 2,728 Hon Richard Prebble 5,172 1,768 6,940 Graham Kelly 990 2,090 3,080 Hon Richard Barker 5,085 3,499 153 8,736 Hon Harry Duynhoven 8,487 701 9,189 Hon William (Robson) Storey 726 726 Hon Hugh Templeton 220 220 Robert (Douglas) Woolerton 480 480 Ian McLean 773 773 Hon Sir Roger Douglas 5,284 725 6,009 Ian Revell 5,389 5,389 Hon Roger Maxwell 10,826 264 11,090 Jeanette Fitzsimons 366 366 Alan Ross Meurant 3,976 3,976 Marjorie Jill Pettis 1,299 275 1,575 Harold (Ross) Robertson 2,089 2,089 Richard James Gerard 4,133 443 4,575 Hon Cedric (Russell) Marshall 7,211 646 7,857 Hon Sir James McLay 4,427 200 4,626 Hon Sandra Lee-Vercoe 530 530 Hon James Sutton 590 590 Philip (Shane) Ardern 1,891 - 1,891 Hon John Banks 6,463 1,554 8,017 Hon Stanley Rodger - 1,312 1,312 Hon John Carter 8,992 1,042 10,033 Hon Steven Maharey 10,826 10,826 Hon Murray (John) Luxton 1,999 3,382 5,381 Timothy Barnett 2,470 780 3,250 John Terris 1,924 680 2,604 Hon Anthony Friedlander 3,098 3,098 Marilyn (Joy) Quigley 7,217 73 7,290 Hon Anthony Ryall 1,299 2,402 3,700 84 Parliamentary Service Annual Report Financial Statements 30 June 2018
Hon Warren Ernest Cooper 1,102 271 1,373
Warren Kyd 9,771 536 10,307
Dr Wayne Mapp 1,533 1,533
Rt Hon Sir William Birch 1,782 1,782
Rt Hon Wyatt Creech 8,310 763 9,073
282,407 69,527 1,234 353,169
Claims relating to prior year(s) travel
Ian McLean 552 350 902
552 350 - 902
Name of Spouse/ Total expenses Total expenses Partner/Surviving incurred for Total expenses incurred for Rail, Spouse of former International Air incurred for Road and Ferry member Name of former member Travel Domestic Air Travel Travel Total John Hercus Hon Dame Margaret Ann Hercus 107 543 168 818 Ray Lind Hon Dame Annette King 1,184 449 1,633 Lady Sandra Arthur Rt Hon Sir Basil Arthur 761 761 Dr Mary English Rt Hon Simon William (Bill) English 1,062 1,062 Joan MacDonell Brian MacDonell 2,069 2,069 Vanessa Neeson Brian Neeson 1,547 224 1,770 Gabriele Pfander Dr Bruce Gregory 286 286 Peter Kaiser Hon Christopher Carter 7,412 642 8,054 Gail Birt Hon Dr Clive Mathewson 556 556 Elaine Jones Dail Jones 2,701 297 2,999 Elizabeth McAffer Hon Derek Quigley 5,114 5,114 Doreen Anderson Robert Anderson 538 137 676 Lady Jane Kidd Hon Sir Douglas Kidd 9,171 1,022 10,193 Noeline Colman Hon Fraser Colman 9,856 2,902 12,758 Lady Margaret Palmer Rt Hon Sir Geoffrey Palmer 4,559 4,559 Janice Hawkins Hon George Hawkins 581 581 Daphne Lee Hon Graeme Lee 1,796 933 2,728 Margaret Duynhoven Hon Harry Duynhoven 1,666 439 2,105 Natasha Templeton Hon Hugh Templeton 220 220 Susan Goldfinch Revell Ian Revell 5,568 5,568 Warren Pettis Marjorie Jill Pettis 609 275 885 Carole Anderton Hon James Anderton 574 959 1,533 Joan Bolger Rt Hon James Bolger 6,885 6,885 Mary Gerard Richard James Gerard 4,133 443 4,575 Leoni Carter Hon John Carter 8,992 553 9,544 Mary Scholtens Hon Murray (John) Luxton 10,329 2,062 12,391 85
Katherine Hawley John Terris 2,000 2,000 John Hunt Marilyn (Joy) Quigley 7,217 254 7,471 Diane Comber Kenneth Mark Comber 408 408 Jenny Shirley Hon Kenneth Shirley 2,380 - 2,380 Nedracita Wetere Hon Koro Wetere 3,533 3,533 Verna Sutherland Larry Walter Sutherland 533 142 675 John Galvin Patricia (Elizabeth) Tennet 805 668 182 1,655 Lady Alexandra Smith Rt Hon Dr Sir Alexander (Lockwood) Smith 7,938 2,179 10,118 Carol Burton Hon Richard (Mark) Burton 2,300 581 2,881 Margaret Peck Mark Peck 3,118 1,160 4,278 Petronella Townshend Hon Matthew Robson 5,038 183 5,221 Barbara McTigue Hon Maurice McTigue 3,099 3,099 Raewyn Williamson Hon Maurice Williamson 5,963 5,963 Rosemary Bradford Hon Maxwell Bradford 1,283 1,039 106 2,427 Judith Bassett Hon Dr Michael Bassett 3,208 430 3,638 Lowson Collins Hon Dr Sir Michael Cullen 8,433 8,433 Laurie Andersen Hon Murray McCully 6,567 6,567 Nan Mckenzie Hon Noel Scott 827 1,142 1,969 Marilyn East Rt Hon Paul East 1,429 759 2,189 Anne Marris Hon Peter Hodgson 759 5,269 6,028 Lynley Brown Peter Brown 9,022 9,022 Jennifer Mackrell Hon Peter Dunne 6,509 2,717 9,226 Margot Gresham Hon Peter Gresham 856 856 Rosalind Burdon Hon Philip Burdon 8,433 2,196 10,629 Carol Woollaston Philip Woollaston 2,230 2,230 John Lepper Hon Phillida Bunkle 1,170 1,170 Frances Maxwell Hon Ralph Maxwell 5,258 5,258 Robyn Northey Richard Northey 7,217 268 7,486 Ngahuia Wade Hon Richard Prebble 8,820 1,526 10,347 Lorraine Storey Hon William (Robson) Storey 726 726 Nicola Shirlaw Rodney David Donald 527 680 1,207 Lady Glennis Douglas Hon Sir Roger Douglas 9,464 204 9,669 Tui Maxwell Hon Roger Maxwell 10,826 264 11,090 Barbara Bailey Hon Ronald Leslie Bailey - 114 114 Grace Robertson Harold (Ross) Robertson 1,634 1,634 Barbara Marshall Hon Cedric (Russell) Marshall 7,211 756 7,967 Catherine Ardern Philip (Shane) Ardern 1,920 1,920 Anne Rodger Hon Stanley Rodger - 1,494 1,494 Bette Jo Flagler Hon Steven Maharey 10,826 10,826 Ngaire Henare Hon Tau Henare 481 481 Ramon Maniapoto Timothy Barnett 2,470 468 2,938 Pamela Friedlander Hon Anthony Friedlander 3,098 3,098 Kara Ryall Hon Anthony Ryall 9,295 1,924 11,220 Lorraine Cooper Hon Warren Ernest Cooper 1,102 271 1,373 86 Parliamentary Service Annual Report Financial Statements 30 June 2018
Dianne Kyd Warren Kyd 9,771 536 10,307 Dr Denis Sullivan Hon Tini Whetu Tirikatene-Sullivan 1,016 139 1,155 Diana Creech Rt Hon Wyatt Creech 7,589 7,589 272,704 49,124 456 322,284
Claims relating to prior year(s) travel Rosalind Burdon Hon Philip Burdon 2,372 2,372 2,372 - 2,372
Subtotal of Former Members 282,960 69,877 1,234 354,071
Subtotal of spouse/partner of former members 272,704 51,496 456 324,656
Fringe Benefit Taxes 435,253
Total 1,113,979