A.13
Working to our strengths
Annual Report 2015 - 2016 Parliamentary Service
Annual Report 2015 - 2016
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)
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Contents 116 49 46 44 37 15 09 23 13 06 05 Financial Information for theyear ended30June2016 Auditor’s Independent report Statement ofresponsibility Our Year ofthePeople About withgreater understanding starts Better service us Foreword: SpeakeroftheHouseRepresentatives Roadmapto Vision 2020 Measuring ourperformance Measuring from theyearHighlights Our achievements thisyear 4 Annual Report 2015 - 2016
Annual Report 5 2015 - 2016
Foreword: Speaker of the House of Representatives
The Parliamentary Service (the Service) supports the institution of Parliament by providing administrative and support services to the House of Representatives and its members of Parliament.
Every day, working in the way that the Service supports alongside other and develops its workforce to deliver agencies on the consistent, efficient and timely services. parliamentary Their ambitious journey is vitally important precinct, the to ensure members of Parliament have the Service helps guide, support and services they need to carry protect, inform out their duties as effectively as possible and support the as elected representatives in our system of country’s members representative democracy. of Parliament. Through the work During 2015/16, the Service continued to of all involved, this embed an integrated parliamentary sector country’s political system is able to work as approach with the Office of the Clerk of it should—robustly, fairly, effectively and the House of Representatives (Office of the responsively. Clerk). This work supports the achievement of common outcomes for Parliament. The Service has had another very productive year, continuing to grow and develop its I continue to appreciate the support that the capabilities as it works towards its vision Service has provided my office over the last of being recognised for excellence and year. innovation.
Listening closely to the needs of members of Parliament has led to important changes in the service delivery model (ongoing into 2016/17). The Rt Hon David Carter, MP Speaker of the House of Representatives People have been another key focus. I 30 September 2016 have seen a significant transformation
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Better service starts with greater understanding
I am delighted to present the 2015/16 annual report of the Parliamentary Service. This has been an exceptional year for the Service and everyone involved can be very proud of what we have achieved.
beyond. Such changes in the customer Our transformational experience are being supported by journey continues improvements to business processes across Parliamentary the Service, and there is huge energy among Service is our staff to make these happen. transforming the service and Rewarding and empowering our people support members Tremendous progress has been made in the of Parliament can way we develop and support our people to expect day to day. carry out their roles. This is central to the As we celebrate Service achieving excellent standards in 30 years of the service delivery. These improvements are Service, and complete year two of our in direct response to the 2014 Performance transformational journey, our ambition is Improvement Framework review that to work seamlessly across the organisation identified weaknesses in our people to deliver the services that members of management space. Parliament value, at the right time and to consistently high standards. We have a clear In 2015/16, we implemented three roadmap of the ongoing work needed to frameworks centred on remuneration, achieve our 2020 Vision of being recognised performance management, and behaviours. for excellence and innovation. These were supported by a talent programme designed to identify and During the year, we worked closely with harness the talent of our people leaders. We members of Parliament to really understand intend to roll this out to other leadership their needs and expectations. Adopting a levels in future years. We also refreshed our customer-focused approach, we instigated Code of Conduct to further help protect changes to our service delivery model in staff by making it clear what is acceptable direct response to their feedback. This and what is not in a political environment. significant piece of work lays the foundation These successes underpin our focus on for the rest of this strategic journey and fairly rewarding and empowering all our
Annual Report 7 2015 - 2016
people to grow in their roles and to deliver within Parliament and during the last year, consistent and timely services to members of the Chamber and Gallery functions were Parliament. re-organised to align with what we regard as best practice. Following the retirement of Maintaining the fabric of Parliament the previous Serjeant-at-Arms in March 2016 We have an important role in making sure after 13 years, this role and the Chamber the buildings are maintained to a team transitioned to the Office of the Clerk. high standard, reflecting their importance Our Security team took over responsibility and status as the foundation of New for the operation of the Public Gallery. Zealand’s democracy. During the year we completed a multi-million dollar upgrade to My thanks to all staff at the Service for their the exterior of Parliament House as well as continuing commitment and energy and for strengthening the physical security of the making the Parliamentary Service a great precinct. place to work. I would like to acknowledge the support that the Speaker has extended Our levels of security threats are changing. to me personally as well as the drive, energy The physical security improvements and support of my Executive Leadership undertaken this year, which form part of Team as we continue our transformational a multi-year programme, are intended journey. to strengthen the safety of those who work at and visit Parliament. In the virtual I would also like to thank the Clerk of environment, we have also made significant the House and his staff for working in a progress in strengthening the resilience collaborative partnership as all of us work to of the information communication and establish better outcomes for Parliament. technology (ICT) network on precinct as well as improving the network connectivity to the out-of-Parliament offices. This supports our philosophy of supporting members and staff to have anytime, anywhere access to their information and systems. Our thinking on how we can transition our services to David Stevenson a cloud-based environment is now well General Manager advanced. 30 September 2016
During the year, in response to the introduction of the Health and Safety at Work Act 2015, we refreshed our health and safety management framework. We are now in the process of implementing this across the organisation. One of the complicating factors here is a requirement under the new legislation for continuous shared responsibility with members of Parliament for aspects of health and safety.
Aligning with other Parliaments There are a number of significant roles
8 Annual Report 2015 - 2016
Annual Report 9 2015 - 2016 us About
10 Annual Report 2015 - 2016 About us
The Service is a group of 740 people passionate about upholding New Zealand’s democracy. Across the country, in communities and at Parliament itself, we work with the country’s members of Parliament as they interact with each other and with their constituents to ensure they have access to the services they need. We guide, protect, inform and support. We aim to be the benchmark for innovation and exceptional service delivery.
Our structure The Service has six business groups:
Finance Parliamentary Library
Information Systems and Technology People and Culture
Organisational Strategy and Performance Precinct Services
Our responsibilities and services We are responsible for providing administrative and support services to members of Parliament and the House of Representatives and we have a team responsible for facilitating this. We also administer, in accordance with directions given by the Speaker, the payment of funding entitlements for parliamentary purposes. Our empowering legislation is the Parliamentary Service Act 2000.
Members of Parliament fulfil a range of roles, including:
providing a government assisting constituents
making and passing legislation debating public issues
scrutinising the activities of government as representatives in a parliamentary and holding it to account democracy
developing policy
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To assist them to do this, we provide the tools, staff and working environment members require to work as effectively as possible, both in Parliament itself and at their out-of- Parliament offices: Services to members
Employer of member support staff Funding advice
Out-of-Parliament office administration, Information and communication services management services and security
Financial and accounting services Research and information services
Payroll and HR services Health, safety and wellbeing services
Travel services
Services on the parliamentary precinct We also provide a range of services to other agencies and users of the parliamentary precinct:
Catering Reception services
Information and communication Messenger and mail services services
Visitor services including education Security and emergency response services, tours and the Parliament shop coordination
Facilities and building management, including building projects, management of heritage buildings and contract management
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In addition, we deliver services to specific agencies:
Group and service Agencies and groups Description
Provision of the computing backbone network (including Computing physical infrastructure, backbone All firewalls, mail gateway network and support), network and telephony platform. Information Strategic advice Systems and Joint service desk, Technology Internal common desktop, (IST) networks Ministerial Support managed services, user and software Office of the Clerk training, application systems hosting, development and maintenance Hosting of the IST Server Central Agency Shared infrastructure, including hosting Services but not limited to servers Tailored information and Parliamentary Library - All staff and users of the research services. Limited Information and research parliamentary precinct services are available to services members of the public Accounts processing, financial reporting and budgeting, Treasury Finance Office of the Clerk interfaces, compliance services Parliamentary Counsel Office with accounting Finance regulations and audit services. Strategic advice International and Ministerial Support Travel domestic travel Former members arrangements Office of the Clerk People and Payroll Parliamentary Counsel Office Full payroll services Culture Services For Ministers on behalf of Ministerial Support
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achievements Our this year this
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Annual Report 15 2015 - 2016 Highlights from the year
Gold rating from Be.Accessible 81% overall customer satisfaction
Over 40% of women in senior leadership Over 11,500 information requests roles answered by Parliamentary Library
Upgraded ICT network connectivity to Completed $7m project to repair exterior 124 electorate offices of Parliament House
Redesign of ICT network infrastructure at Certificate of excellence award from Trip Parliament Advisor for quality of visitor services
Over 91,000 visitors to Parliament 10-Day Festival of Parliament in July
Developed and implemented new performance, behavioural and remuneration frameworks for Corporate Support Staff
16 Annual Report 2015 - 2016 Our achievements this year
The political environment is abuzz with ideas, debate and urgency. It’s an arena where everything happens quickly, where situations can change dramatically, where committed people work alongside and in opposition to each other for the good of everyone. For this system to work to its very best, it needs strong and assured support. Here’s how we performed against the objectives outlined in our Strategic Intentions 2014-18.
the applications stack to provide improved Outcome: The House applications availability to all users. We also of Representatives and implemented ‘Office in a Box’ (a refreshed Wide Area Network) solution for 124 members receive high members’ out-of-Parliament offices. This solution replaced the outdated network quality services connection technology with up-to-date fibre We strive to provide a range of services connections, resulting in faster connectivity to members and parties, to assist them to to the parliamentary precinct network and fulfil their role as elected representatives increased reliability. and legislators, as set out in the Speaker’s Our Information Systems and Technology Directions and within Appropriations. We team has significantly increased the training have three goals to achieve this outcome. delivered to staff in members’ out-of- Goal #1: members and agencies on the Parliament offices—up from 2% in 2015 parliamentary precinct are able to work to 19% in 2016 (as a percentage of overall flexibly and effectively wherever they are. training delivered). This complements our continued focus on supporting anytime, How did we do? anywhere access using a range of supported Our target is that satisfaction levels equal mobile devices. or exceed 80% with the services provided. In 2015/16, customer satisfaction with IST b) Continuous business improvement and service provision was above target at 82%, improved staffing model for members a 3% increase on the previous year’s result. The Service’s Financial Management Our customers also received quality access to Information System was upgraded. A portal key IST services during business hours. There for easy access to the financial reporting was a total of 312 minutes of outage for the system was rolled out in June 2016. whole year, resulting in a 99.8% average for We developed and implemented a network access. learning and development framework for What did we do? members’ support staff. This provides tools, a) Improved technology to enable flexible and resources and learning solutions to ensure efficient working conditions for members and development needs are being met and that other agencies staff are equipped to better support their We redesigned and renewed the core members. This complements the staffing network on the parliamentary precinct, model for members established at the start improving its resilience as well as updating of this parliamentary term.
Annual Report 17 2015 - 2016
Towards the end of the year, we also started Travel services were rated at 80% and 90% work on improving our business processes. respectively. The HR result was up 10% on Complementing this stream of work is a new last year. service delivery model to help members What did we do? of Parliament navigate our services easier. We implemented new remuneration, Dedicated managers now support and act performance management and behavioural as the manager of members’ support staff. frameworks for corporate support staff. A A case management capability has also new talent programme which focused on been established to assist members with identifying, developing and retaining key their service requests, particularly those that staff was also introduced, and a refreshed require a cross-functional response. Code of Conduct completed. c) New Speaker’s Directions that enable more In the finance area, we improved processes flexibility to help members perform their work and efficiencies to support the delivery of We started work on reviewing the current high quality services. We also reduced the set of Speaker’s Directions—the operating number of small value invoices. In fact, total framework for members—following the invoices processed have decreased by over report of the Sixth Triennial Appropriations 42% in the past three years. Review Committee (ARC), presented to Parliament in November 2015. The ARC Our travel services continue to be highly is convened each parliamentary term to regarded, with 90% of customers satisfied consider the funding of the Parliamentary with the services provided. Service and members. A Working Party of Goal #3: members and agencies on the members—supported by the Service—is parliamentary precinct receive quality now considering the recommendations of information, research and collection the Sixth ARC. These recommendations will services. then feed into the creation of new Speaker’s Directions, which will be in place in time for How did we do? the 52nd Parliament. Our target is that satisfaction levels equal or exceed 80% relating to these services, Goal #2: members and agencies on the and uptake of these services meets parliamentary precinct receive high quality targets. services Customer satisfaction with the Library is very How did we do? high at 94%. 100% of members and their Our target is that members’ satisfaction staff used the Parliamentary Library at least levels equal or exceed 80% relating to the once in the year, with 98% using the Library’s transition between each parliamentary services five or more times and 94% using it term, and that targets relating to key ten or more times in the year. service delivery points, e.g. HR and Finance, are met. What did we do? a) On-going access to library information and Members’ satisfaction with services provided services in a timely manner during the parliamentary transition was not The Parliamentary Library completed over measured as there was no general election 11,500 requests, an increase of 11.5% on the during 2015/16. Customer satisfaction with previous year. the provision of Finance services was below target at 75%, but up 2% on last year. HR and
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The Debate Packs Service was new to the Library in 2015/16. These packs are a Outcome: An compilation of material on bills, including: accessible Parliament a brief synopsis of the bill; statements from political parties; stakeholder commentary; New Zealand’s Parliament is a fundamental and media coverage. They are designed to cornerstone of New Zealand’s representative save time for customers writing speeches. democracy. We pride ourselves on ensuring The Library produced 110 packs this year. all New Zealanders are able to participate and have access to our Parliament. We We are continuing to obtain better statistics do this by encouraging students and the on the size and make-up of the Library’s general public to visit, either in person or physical collection, following a review. online, to learn about our democracy, our The Library holds 180,000 items including history, and the process of developing 50,000 books, 50,000 serials, and an array and passing legislation. The Office of the of parliamentary publications and maps. Clerk and the Service work together as the During the year, work focused on processing parliamentary sector to identify and deliver serials into the retained collection, and initiatives which will further enhance public working with the National Library of New knowledge and respect for Parliament. We Zealand and other institutions to review the have three goals to achieve this outcome. Library’s disposals.
The Library’s Information Management Goal #1: the public can learn about and team introduced a record keeping audit. engage with the parliamentary process. Two business systems were audited to How did we do? better understand the nature and value Our target is public uptake and use of of the business records they contained. parliamentary education resources meets This led to recommendations to relevant targets, and user satisfaction shows those senior managers within the Service on resources are fit for purpose. improvements to business processes and recordkeeping interventions. In a survey of users of online education resources, 89.5% of those surveyed said they Two of our Library staff went to Fiji to assist were fit for purpose. This was down from their Parliamentary Library with research 96% last year. There were over 1,900 new services. We assisted in preparing briefing visitors to the education resources webpage, materials ahead of their national budget as and over 500 education resource packs were well as helping to establish a research service sent out to teachers. for the Library. What did we do? a) Resources that better educate students and the public about Parliament As the survey results showed, our Education Services resources for educators and students continued to be in high demand.
Our Education Services team presented at four professional development sessions for teachers alongside other LEOTC providers (Learning Experiences Outside the Classroom) from the Wellington region.
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These sessions allow teachers to find the New Zealand Symphony Orchestra and out more about the visit options and the the New Zealand School of Music along with resources available at Parliament. a range of tours. The event culminated in an open air concert by Dave Dobbyn and the More educational groups have visited Orpheus Choir on the steps of Parliament Parliament than in previous years. We and a light and sound show projected onto hosted 552 group visits in 2015/16, up from the facade of Parliament House. 547 the previous year. Following on from the public interest in this b) Engaging the public through events and event the Parliament Sector worked together activities that interest, inform and involve the to deliver the “Festival of Parliament”—a public 10 day festival of a range of events to We increased the number and variety of engage and inform members of the public tours and education programmes. The new about aspects of Parliament. Events such historical tour “The People’s Parliament” as “Question Time Explained” and “Have along with “Parliament in Wartime” were your Say” allowed for deeper conversations both popular. More educational groups to take place. Evening tours were also have participated in “How Parliament Works” offered outside of normal operating hours to programme and other programmes on offer. encourage different people to attend. These Forty art tours showcasing Parliament’s were well subscribed. collection were also run for the general c) Improvements in informational content public and for special interest groups. Tours about Parliament and improved public access combined with High Tea in Bellamy’s dining to it room continue to be well received and have The new Parliament website was launched now become a regular feature on the annual in June 2016. This was a collaborative events programme. effort with the Office of the Clerk. The new New tours have been tested such as website replaced the previous version built “Women in Parliament” and “Portraits and in 2006, and features improved design and Personalities” and are now available for functionality, and a better overall experience groups. Tours were also offered in New for users. Zealand Sign Language and in Mandarin this d) Engage with new and hard-to-reach year. audiences, using a variety of channels, The quality of our educational service including social media continues to be recognised through the New electronic signage was erected on annual visitor survey. 97% of respondents the parliamentary precinct showcasing the rated the service good or excellent and 97% times of select committee hearings and of visitors would recommend the tour to parliamentary tours. This was designed to family and friends. The visitor experience improve the accessibility of information and is also highly rated through comments and improve the overall customer experience for the Certificate of Excellence award on Trip visitors. Advisor. Our Twitter statistics continue to trend In July 2015 Parliament participated in upwards as we make use of high the city-wide celebration of 150 years of engagement opportunities in addition to the Wellington as the capital city. Members of more day to day matters. Around 75% of our the public came to Parliament for a range of followers are in the 18 to 34 age bracket. The special events such as performances from number of followers increased by 1,961 to
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a total of 11,194, an average increase of 164 are timed to expire at the assets’ anticipated followers per month compared to 146 the end-of-life date. Effective use of this Plan previous year. The average number of tweets should ensure there are no significant sent per month was 58, up slightly from 54. unplanned plant failures and parliamentary Tweet ‘impressions’ were significantly up on assets remain available to support the the previous year, with a peak in May 2016 of buildings and business of Parliament. 178,000. For example, this year, all the expensive to Based on public response, an Android maintain and operate metal halide lights in version of the Virtual House app was created Parliament House were replaced with LED in March 2016. The app was first launched in inserts. This change takes the replacement May 2015. It allows users to: cycle from 2,500 hours to 50,000 hours, and more than halves the energy consumption of search for members and view their the lights. biography via the Parliament website b) Buildings and grounds on the parliamentary precinct are fit-for-purpose locate where an MP sits in the House The exterior repair work to Parliament House (a heritage listed building) was completed in May 2016. Work began in September use an interactive display of the seating plan 2014 to replace the aging grout between all the marble exterior panels and to apply watch or listen to Parliament TV on a wireless a new membrane roof over the top of the or a cellular connection existing roof. This required capital funding of over $7m for the two years of the project email MPs via information on the Parliament and should ensure the preservation of this website. building for another 100 years.
There is ongoing work in improving the Goal #2: the parliamentary precinct is safe, used, and maintained effectively. physical accessibility of Parliament. An audit by Be.Accessible (a social change initiative How did we do? dedicated to creating a truly accessible Our target is that project and maintenance country) resulted in the Service being deliverables in the Capital Asset recognised with a Gold award in June 2016 Management Plan are completed to for the degree of accessibility around the agreed standards. And targets related to precinct. the management of the precinct are met. Security on the parliamentary precinct has The deliverables for 2015/16 in the capital improved with upgraded exterior CCTV asset management plan were met. and a range of physical improvements to What did we do? strengthen the perimeter security. A new a) Effective and efficient management of set of contingency plans for the precinct has parliamentary assets been written and tested in live exercises. In Our Capital Asset Management Plan was June 2016, work started on the installation of created to ascertain the expected end-of-life retractable vehicle bollards to the entrances date for all building assets. This Plan forms of the precinct. Training and education the basis for the multi-year, forward-looking relating to security is being provided to all capital finance plan and serves as a tool to five agencies based on the precinct. ensure existing assets’ depreciation rates
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Outside of the parliamentary precinct, information relating to risk is being shared with members’ out-of-Parliament office staff, making their work environment safer. Security training to all members’ out-of- Parliament offices, based in their offices, is being rolled out through to November 2016.
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Annual Report 23 2015 - 2016 Measuring our Measuring performance
24 Annual Report 2015 - 2016 Measuring our performance
Alongside weekly meetings between our General Manager and the Speaker of the House of Representatives, we also report on an exceptions basis. Our standards and performance measures are set out in two key accountability documents:
Estimates of Appropriation, which set Strategic Intentions, which sets out our out key non-financial performance operating intentions and medium-term standards and measures for each output strategic priorities
Member support staff satisfaction Our annual customer satisfaction survey with member support staff was conducted in June — July 2016. It is designed to assist us to effectively measure satisfaction, understand expectations, and measure our performance against key drivers of satisfaction. The survey itself draws upon international best practice and uses the Common Measurements Tool (CMT) for the design of questions and the measurement scales1 . The 33% response rate was lower than in previous years2.
The survey asked for satisfaction ratings using a 5-point rating scale3 for the following services:
Asset Management and Maintenance Member Services
Finance Travel
People and Culture Security
Information Systems and Technology Reception
Parliamentary Library Telephony
1 The CMT underpins the Kiwi Count Survey methodology used to measure New Zealanders’ satisfaction with the provision of public services. 2 This is lower than previous iterations of the survey conducted in 2013, 2014 and 2015. The average response rate overall through the years has decreased from 44% to 41%. 3 1 = very dissatisfied and 5 = very satisfied
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We aim for an overall customer satisfaction rating of 80%4 . This year, our overall customer satisfaction index rating of 81% was identical to the previous year. Below you can see the customer satisfaction scores for each part of our organisation that was surveyed, along with a comparison to previous years.
4 Survey responses have been analysed using a weighted mean score. Weighted mean scores take into account the distribution of responses across the entire rating scale and provide a ‘truer’ result. 26 Annual Report 2015 - 2016
The red circles highlight how overall satisfaction with our People and Culture team and Information Systems and Technology team has increased from the first year the survey was conducted in 2013 by 6% and 2% respectively and achieved the 80% performance target this year. The black circles reveal that overall satisfaction with both Member Services and Telephony Services has continued to increase.
Overall, five of the ten service teams achieved our satisfaction benchmark rating of 80%. At 75%, Finance and Reception Services still have room for improvement, although, as noted earlier, Finance achieved a 2% increase on 2015.
Given the lower response rate this year, it is difficult to attribute specific factors to those scores that have declined, particularly for the Asset Management and Maintenance team. Possibly the latter is due to the timing of the survey in the parliamentary term.
While there has been consistency in the overall customer satisfaction score over the past four years (2013:79%, 2014:83%, 2015 and 2016: 81%), the lower response rate and a perception among some member support staff that they were not a suitable proxy for members has prompted us to review the effectiveness of this survey method. We are now trialling alternative approaches to measuring customer satisfaction from members.
Speaker’s satisfaction
Each year, the Speaker is asked to complete a survey rating his satisfaction with:
The provision of resources and services to his office
The timeliness, accuracy, consistency, impartiality, and solutions focus of the advice he has received
The advice on Parliamentary Service and Entitlements for the Parliamentary Service Commission.
The survey asks the Speaker to rate his satisfaction on a 5-point rating scale 5. In the May 2016 survey, the Speaker rated his satisfaction as 5 across all three areas. This was an identical result to that for the previous three years.
5 1 = very dissatisfied and 5 = very satisfied
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Privacy
Privacy of information is something we take very seriously. We are in a unique situation in that we manage information for members and are the service provider for other agencies on the precinct. However, under the Privacy Act, our legal privacy constraints relate to personal information about current or former employees. This year, we carried out a self-assessment on meeting good practice for privacy management and governance, and established a formal register for privacy breaches which is discussed regularly by the Executive Leadership Team. We also conducted an ICT security risk assessment on our online performance management system, Cornerstone, given that it’s hosted in the cloud. The news was good: a successful outcome for our privacy focus. In the next 12 months, we are looking to drive forward a privacy work programme and update our information governance strategy to reflect our changing operating environment and concurrent activities.
Strategic Risk Management
Our General Manager has overall responsibility for ensuring a risk management framework is embedded within the Service and that all our organisational risks are managed to the expectations of the Speaker. This framework provides a systematic process for the identification and evaluation of organisational risks. Our Executive Leadership Team is then responsible for identifying the key risks that may impact on the achievement of the strategic objectives, for finding mitigation strategies, and for monitoring the effectiveness of these strategies.
All our people have a responsibility to identify and manage risk. A management assurance programme, which includes internal audit and legislative compliance, ensures that the mitigation strategies for key operational risks are being managed effectively.
Our risks, set out below, could impact on our systems, processes and management practices, our wider operating environment, and thereby the reputation of the Speaker’s Office, members and Parliament:
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Risk Explanation of the risk
The Service does not have the appropriate Failure to deliver on our people culture or workforce capability/capacity to work outcomes seamlessly across groups to deliver high quality services The Service does not have the right infrastructure Technology does not deliver on our and tools to enable us and those we serve to work customer need securely whenever and wherever we / they are The Service doesn’t engage effectively with key stakeholders (including the Speaker, members and members’ support staff, parliamentary We are not customer centric agencies, public and the media) and so fails to understand the expectations of service and the public’s need for access to Parliament The Service fails to understand the service levels that are expected, and therefore fails to We don’t provide excellent services deliver core services and agreed service levels to stakeholders Precinct buildings are not maintained sufficiently to retain their integrity, appearance, and utility. A failure of physical or information security leads to a serious breach of privacy or the release of The workplace is not ‘fit-for-purpose’ sensitive/confidential information, impacts on critical functions (e.g. ICT network), disruption of physical accessibility of Parliament, disruption of operations or service delivery The Service fails to align with sector priorities. We don’t work as a parliamentary The sector fails to achieve its strategic outcomes sector leading to a loss of confidence from the Speaker
We have risk mitigation strategies in place for all these identified risks, and a process to monitor the effectiveness of these strategies.
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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 provide funding to the Speaker to run his office as well as to provide for external triennial reviews of the appropriations supporting Parliament.
Measure Performance standard 2014-15 result 2015-16 result
The Speaker is satisfied Customer satisfaction of Achieved Achieved with the provision of at least 4 on a scale of 1 to Score of Score of 5 overall resources and services 5 in the annual Speaker’s 5 overall satisfaction to his office satisfaction survey satisfaction
Financial Performance Actual Approved Appropriation (Figures are $000s and GST exclusive) 2016 2016 Total expenditure 350 366
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Operations, Information and Advisory Services multi-category expense
The intention of this appropriation is the successful operation of Parliament. The parliamentary precinct must meet the constitutional and institutional requirements of a Parliament; that is, providing accessibility and security, a forum for debate and public participation, and effective office facilities and support services.
Measure Performance standard 2014-15 result 2015-16 result
Customers are satisfied Survey respondents Achieved Achieved with the overall quality report an 80% or more of services (weighted mean) 81% 81% overall quality of service satisfaction rating
Building and Operations Management
The intention of this appropriation is to achieve building maintenance and operational services.
Measure Performance standard 2014-15 result 2015-16 result
The public has access 75,000 - 80,000 people Achieved Achieved to the parliamentary 87,392 84,502 people precinct via people visited visited Parliament parliamentary tours and Parliament education visits6 Visitors undertaking 90% of visitors rate their Achieved Achieved a parliamentary tour parliamentary experience 98% of visitors 97% of visitors rate the parliamentary as good or excellent rated their rated their experience as good or experience experience as excellent as good or good or excellent excellent The public gallery The public gallery of the Achieved Achieved of the House of House of Representatives Representatives is is available for the public available for the public to access 99% of the time to access of its sitting
6 Please note there is an inaccurate assessment of performance in the Supplementary Estimates of Appropriation 2015/16: “The public has access to the parliamentary precinct via tours, education, visits and the public gallery.” The performance standard is measured by the number of people taking a parliamentary tour and education visitors and is reflected in the wording to the measure above.
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Measure Performance standard 2014-15 result 2015-16 result
The condition of our Deliverables from the Achieved Achieved heritage buildings 2015/16 Capital Works is maintained to plan are completed. reflect their national Accessibility New measure Achieved significance and these improvements are are accessible to the delivered disabled community The parliamentary PSR action plan New measure Achieved precinct and out-of- developed with 20- 63% of Parliament (OOP) offices 30% of deliverables deliverables are safe and secure implemented7 implemented
100% of OOP offices New measure Not achieved which have been 57% of offices assessed have the which have been required improvements assessed have implemented the required improvements implemented8 95% of security incidents New measure Not achieved on the precinct resolved All incidents successfully with accurate were resolved post-incident reporting successfully submitted within 12 hours but 49% of of any incident post-incident reports were not completed within 12 hours 9
Financial Performance Actual Approved Appropriation (Figures are $000s and GST exclusive) 2016 2016 Total expenditure 28,099 27,933
7 PSR is Protective Security Requirements. 8 This result was taken at the end of a lengthy audit process resulting in a number of previously self-assessed compliant offices being found to require minor works to be truly compliant with the minimum standards. In July 2016, a rectification plan was put in place and this has achieved pleasing results. As at 23 September 2016, 78% of audited offices comply with the minimum standards. 9 Although a disappointing result, this doesn’t truly reflect the progress made within the Security team as evidenced by the result in the implementation of the PSR action plan. The process from the independent auditor confirmed that Security staff responded to every incident in a timely manner (within 7 minutes of notification) and mitigated all immediate security risks in all cases. However, it is recognised that improvements need to be made in the reporting of incidents within 12 hours of any incident. A rectification plan is in place and improvements have started to be noticed.
32 Annual Report 2015 - 2016
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 2014-15 result 2015-16 result
Customers receive Customers receive Achieved Achieved quality network access quality network access to email services, file to email services, file and 99.9% 99.8% and print services, print services, internet internet and intranet and intranet access via access via desktop or desktop or mobile devices mobile devices in the in the precinct 99.8% of precinct the time during business hours10 On-site incidents for At least 90% of on-site Achieved Achieved out-of-Parliament incidents for out-of- Offices are responded Parliament Offices with 100% 95% to in a timely way Priority 1 service status are responded to on-site within six business hours No incidents No incidents are reported Achieved Achieved are reported of of unauthorised access to No incidents No incidents unauthorised access members’ e-mail or other were reported were reported to members’ e-mail electronic data stored on of unauthorised of unauthorised or other electronic the Parliamentary network access to access to data stored on the due to PS ICT action or members’ members’ Parliamentary network inaction e-mail or other e-mail or other due to PS ICT action or electronic data electronic data inaction stored on the stored on the parliamentary parliamentary network due network due to the Service’s to the Service’s action or action or inaction inaction Customers are satisfied Survey respondents report Not achieved Achieved with the quality of ICT an 80% or more (weighted services mean) overall quality of 79% 82% service rating11
Financial Performance Actual Approved Appropriation (Figures are $000s and GST exclusive) 2016 2016 Total expenditure 15,403 15,809
10 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. 11 The customer satisfaction survey is based on the Kiwi’s Count Survey. The results of the survey are based on input from Members’ Support Staff as a proxy for MPs on advice from Audit NZ. Annual Report 33 2015 - 2016
Parliamentary Library
The intention of the appropriation is to achieve the supply of library services.
Measure Performance standard 2014-15 result 2015-16 result
Customers are satisfied Primary clients report an Achieved Achieved with the quality of 80% or more (weighted Library services. mean) overall quality of 95% 94% service satisfaction rating.
Members and their staff Percentage of members Achieved Achieved use of Library Services or their staff usage of per year: Library services per year: • once or more • 97% once or more 100% 100% • five or more • 80% five or more 98% 98% • ten or more • 60% ten or more 92% 94%
Financial Performance Actual Approved Appropriation (Figures are $000s and GST exclusive) 2016 2016 Total expenditure 4,750 4,738
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 2014-15 result 2015-16 result
Provide timely Financial information Substantially Achieved reporting, budgeting is available within four met12 and forecasting services working days of month 75% end for 75% of the financial year
12 Performance standard not met in the months of July and August 2014 due to year end, September and October impacted by the General Election period and January 2015 due to extended timeframes from Treasury.
34 Annual Report 2015 - 2016
Measure Performance standard 2014-15 result 2015-16 result
Customers are satisfied Survey respondents Finance 73% Finance with the quality of report an 80% or more Not achieved financial, HR and Travel (weighted mean) 75% services overall quality of service satisfaction rating HR 78% HR Achieved 80% Travel – New Travel measure Achieved 90% Requests for 100% of requested Not achieved Substantially met Employment Employment Agreements agreements for for Members’ staff are 90% completed 97% completed Members’ staff are dealt provided within 3 working within 3 working within 3 working with in a timely manner days of receipt days of receipt days of receipt
Provision of accurate The six payroll New measure Achieved and timely payroll organisations are services to six processed with a 99.5% to 99.9% organisations13 100% accuracy rate
Financial Performance Actual Approved Appropriation (Figures are $000s and GST exclusive) 2016 2016 Total expenditure 7,798 8,050
13 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.
Annual Report 35 2015 - 2016
Department capital expenditure
This category ensures the Service has the correct facilities and tools to enable it to fulfil its purpose to service New Zealand’s Parliament.
Unaudited Actual 2016 Main Estimates 2016 Supp Estimates 2016 $000 $000 $000 Property Plant and 1,354 1,125 396 Equipment Intangibles 2,338 3,375 3,615 Total Appropriation 3,692 4,500 4,011
The series of network outages in February 2015 highlighted that the precinct network environment was no longer capable of reliably supporting the modern demands of Parliament information needs. As a result, a reprioritisation of the planned capital work programme was required.
36 Annual Report 2015 - 2016
Annual Report 37 2015 - 2016 People Our Year of of Our Year the
38 Annual Report 2015 - 2016 Our Year of the People
Parliamentary Service is a place for people with energy and open minds. It’s for those who believe in the greater good, who enjoy being part of a diverse team and who are determined to find robust and workable answers to the myriad of problems that come our way.
We operate in a complex yet unique environment requiring a broad range of skills and expertise. We have two distinct workforces:
Members’ support staff workforce, who work Corporate support staff, who provide a directly to members and within the party range of services to members, agencies on political offices. the wider parliamentary precinct and the public.
We designated this year as our ‘Year of the People’ and successfully implemented a number of organisational initiatives to build and strengthen our people capabilities.
Growing and developing our people
Our focus as an organisation is changing. united by our wish to change what service Today, we want our teams to be thinking can mean, how it can work and who it suits. about service, teams, respect and resilience. That’s why our people have been actively To achieve such deep-seated change, we will involved in shaping the vision for the Service continue to: and forging links between what they do and our organisation’s strategic direction. While significant progress has been made develop an organisational culture that over the past twelve months, we are still on bridges the gap between what our people a journey to improve capability, leadership have identified as the preferred culture and and address concerns around how we work the current one. The preferred culture is and perform overall as a culture. one where there is open communication and people collaborate and get involved in Delivering superior customer service requires organisational initiatives. This culture will people to feel empowered to be innovative encourage higher levels of staff engagement and creative. If we are to fulfil our goal of and greater productivity as well as fostering being an employer of choice with a highly innovation. It will support the delivery of engaged and passionate workforce, then the high quality services to customers ways in which we work must orientate to finding answers, rethinking approaches, and recognising that each of us from Parliament ensure our people have the right skills and itself to the smallest electorate office are tools to perform effectively. We will focus
Annual Report 39 2015 - 2016
on providing learning and development recruiting and retaining staff. opportunities to grow our people We worked with the Public Service Association (PSA) and external remuneration employ recruitment and retention strategies specialists to develop and implement a to acquire and foster new capabilities that broad banding remuneration framework align with our overall direction and career matrix. The new framework was ratified and introduced from 1 September 2015. It will ensure we retain staff, attract implement and embed customer talent, are competitive in the market and relationship management systems that more effective in our succession planning, support decision making and make and continue to build capability across our greater use of knowledge sharing across organisation. organisational boundaries Performance and behavioural framework (completed) gather insights that allow us to anticipate We implemented a new performance customer needs and respond to management and behavioural framework for opportunities for improvement. corporate support staff, collectively known as Shaping My Future. This framework aligns our objectives with our strategic plan and Developing leadership, enables robust performance conversations management and to take place on a regular basis. The behavioural framework determines the workforce capabilities desired behaviours staff need to possess and display in their roles. Two organisational Sustainable change requires continually behaviours were identified as critical, now improving the systems and processes that form part of everyone’s performance plan, enable us to carry out our core business. and align with our vision and strategic This links directly with our business process initiatives: customer focus; and the ability to management initiative. We also need our communicate effectively. people to assume strong strategic leadership to successfully adopt and implement the Shaping My Future is supported by the changes required by our stakeholders. To readily-accessible online cloud based achieve those ends, we have successfully tool Cornerstone, which our people will developed and implemented the following use on an ongoing basis for planning, programmes of work: tracking progress, performance reviews and capturing development plans. Remuneration framework (completed) A transparent and sustainable remuneration Talent programme (completed) framework for corporate support staff was a We implemented a programme to identify, key priority. We recognised that the existing develop and retain key talent to ensure we framework was not fit for purpose, that the have a pool of talented leaders to meet the salary ranges had fallen behind the market future needs of the organisation. Based and that the remuneration framework on the talent framework developed by the we had was contributing to difficulties in State Services Commission (SSC) for use by
40 Annual Report 2015 - 2016
agencies across the state sector, our talent tailor relevant learning and development programme enables participation in the solutions for corporate support staff in Career Boards. Wellington.
Led by the SSC and Chief Executives from Induction and orientation (in progress) across the sector, the Boards review and We regularly facilitate engaging and plan the development of senior leaders informative induction and orientation and lead succession planning for key programmes for members’ support staff. The positions. Participation in these Boards programme helps staff gain clarity about provides a significant opportunity for how their role contributes to the institution leadership development. In line with the of Parliament, understand our unique and SSC talent management framework, our diverse work environment and know the talent programme is based on a nine box tools and networks available to support grid approach. This is used to evaluate them on a day to day basis. individuals on both performance and potential. We are now planning to expand these programmes with a robust on-boarding The initial focus is on Executive and senior programme targeted at corporate support leaders. In time, this will be expanded to staff in Wellington and members’ support leaders at all other levels and ultimately to staff. This will ensure that staff are exposed all other permanent staff. The programme to a positive on-boarding experience from will ensure we have the right people with the the outset. right skills and talent in the right positions. Code of conduct (completed) Leadership programme (in progress) We refreshed our Code of Conduct We are currently developing a leadership through a consultative process, involving development framework with associated representatives from across the organisation learning and development opportunities and the unions. This document sets out to support leaders to embed Shaping My the behavioural standards expected of all Future and to strengthen overall leadership Parliamentary Service employees. Launched capability across the organisation. This will in February 2016, the refreshed document be a multi-year programme to empower is more in line with the organisation today leaders and enable them to confidently and and has been well received by staff. It will be effectively lead their people. particularly important during the upcoming election periods. Learning and development framework (in progress) Health and safety (in progress) We have developed and implemented a We are committed to protecting the health learning and development framework for and safety of our staff and others accessing members’ support staff. This provides tools, facilities, both here at Parliament and at resources and learning solutions to ensure members’ out-of-Parliament offices. Driven their development needs are being met by the introduction of the Health and and they are equipped to better support Safety at Work Act 2015, we refreshed our members. health and safety management framework and are now implementing this across the As part of Shaping My Future, we are also organisation. This new framework is based using on-going performance discussions to on the Australia/New Zealand standard. It
Annual Report 41 2015 - 2016
sets the expectations the Service has of its management and staff as well as the developing a flexible working strategy methodology for assessing and managing health and safety risk. developing a diversity strategy One of the key risks we face is security associated with members’ out-of-Parliament offices. We need to balance our commitment developing organisational values to support to an accessible Parliament and democracy our vision and strategic direction with ensuring that staff and visitors to members’ offices are kept safe. We are working with members, who also have conducting an organisation-wide culture/ responsibilities for health and safety, to engagement survey jointly meet our obligations under the new Act. The focus in the coming year is on reassessing the Service’s risk profile based developing an employee value proposition on a new risk assessment methodology and providing resources and training for staff on security-related risk. refreshing the performance review framework for members’ support staff. Future focus Looking ahead, we are committed to implementing six further programmes of work over the next three years:
42 Annual Report 2015 - 2016
Our workforce
As of 30 June 2016, the Service employs 748 is reflected in the fact that over a third of staff, equivalent to 649.7 full time equivalent our workforce is part-time, of which 74% are staff (FTEs). This contrasts with 705 staff, female15. We recognise the value of flexible equivalent to 637 FTEs, as of 30 June 2015. working and diversity and are currently 62% of staff are employed to support developing a flexible working strategy and members of Parliament or the Party Political diversity strategy. offices (member support staff), while 38% provide corporate support services and advice on behalf of the General Manager of Gender profile
the Parliamentary Service. Our workforce is made up of 62% women. This is higher than the 2015 Public Service We have seen a significant reduction in un- figure of 60.5%. 41% of women are in senior planned turnover (annualised) of corporate leadership positions. support staff from 12% in 2014 to 7.2% in 201614. This compares favourably with the Public Sector average of 10.9%.
Diversity, Equal Employment Opportunities (EEO)
We pride ourselves on offering our people a flexible working and work-life balance. This
14 Unplanned turnover includes resignations, retirements, dismissals and deaths and excludes all Fixed Term employees. 15 Part-time workforce refers to staff working less than a 40 hour week.
Annual Report 43 2015 - 2016
Ethnicity profile
2016 Public Service June 2015 NZ working age 2015 Māori 14.6% 16.4% 12.9% Pacific 5.5% 8.0% 5.8% Asian 6.2% 8.5% 11.7%
Note: previous year. Our representation for people Not all staff record their ethnicity. We have identifying as Māori, Pacific and Asian is revised our method for calculating ethnicity slightly lower than that of the overall Public figures in line with that of the State Services Service. However our representation for Commission. Māori is higher than the NZ working age Our workforce is represented by 44 different population (2015) for this group. ethnicities; an increase from 35 in the
44 Annual Report 2015 - 2016 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 2016 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 2017 and its operations for the year ending on that date.
David Stevenson General Manager
30 September 2016
Annual Report 45 2015 - 2016
46 Annual Report 2015 - 2016
Independent Auditor’s Report
To the readers of Parliamentary Service’s Annual Report for the year ended 30 June 2016
The Auditor-General is the auditor of the Parliamentary Service (the Service). The Auditor- General has appointed me, Karen Young, using the staff and resources of Audit New Zealand, to carry out the audit on her behalf of: • the financial statements of the Service on pages 53 to 82 that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2016, the statement of comprehensive revenue and expense, statement of changes in equity, 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 2016 on pages 16 to 21 and 24 to 35; and • the statements of expenses and capital expenditure of the Service for the year ended 30 June 2016 on pages 83 and 84 and 104 to 109; and • the schedule of expenditure on travel entitlements of former members and their spouse or partner on pages 110 to 115; and • the schedules of non-departmental activities which are managed by the Service on behalf of the Crown on pages 86 to 103 that comprise: • the schedules of assets, liabilities and revaluation reserves, commitments, contingent liabilities and assets as at 30 June 2016; • the schedules of expenses, and revenue for the year ended 30 June 2016; and • the notes to the schedules that include accounting policies and other explanatory information.
Opinion In our opinion: • the financial statements of the Service: • present fairly, in all material respects: · its financial position as at 30 June 2016; and · its financial performance and cash flows for the year ended on that date; • comply with generally accepted accounting practice in New Zealand and have been prepared in accordance with the Public Benefit Entity Standards. • the performance information of the Service: • presents fairly, in all material respects, for the year ended 30 June 2016: · 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
Annual Report 47 2015 - 2016
• complies with generally accepted accounting practice in New Zealand. • the statements of expenses and capital expenditure of the Service on pages 83 and 84 and 104 to 109 are presented fairly, in all material respects, in accordance with the requirements of section 45A of the Public Finance Act 1989; • the schedule of expenditure on travel entitlements of former members and their spouse or partner 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 86 to 103 present fairly, in all material respects, in accordance with the Treasury Instructions: • the assets, liabilities and revaluation reserves, commitments, contingent liabilities and assets as at 30 June 2016; and • the expenses, and revenue for the year ended 30 June 2016. • the notes to the schedules that include accounting policies and other explanatory information. Our audit was completed on 30 September 2016. This is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the General Manager and our responsibilities, and we explain our independence.
Basis of opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the information we audited is free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers overall understanding of the information we audited. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the information we audited. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the information we audited, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Service’s preparation of the information we audited 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. An audit also involves evaluating: • the appropriateness of accounting policies used and whether they have been consistently applied; • the reasonableness of the significant accounting estimates and judgements made by the General Manager; • the appropriateness of the reported performance information within the Service’s framework for reporting performance; • the adequacy of the disclosures in the information we audited; and • the overall presentation of the information we audited. We did not examine every transaction, nor do we guarantee complete accuracy of the information we audited. Also, we did not evaluate the security and controls over the
48 Annual Report 2015 - 2016
electronic publication of the information we audited. We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.
Responsibilities of the General Manager The General Manager is responsible 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; • the schedule of expenditure on travel entitlements of former members and their spouse or partner; and • 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’s responsibilities arise from the Public Finance Act 1989. The General Manager is responsible for such internal control as is determined is necessary to ensure that the Annual Report is free from material misstatement, whether due to fraud or error. The General Manager is also responsible for the publication of the Annual Report, whether in printed or electronic form.
Responsibilities of the Auditor We are responsible for expressing an independent opinion on the information we are required to audit, and reporting that opinion to you based on our audit. Our responsibility arises from the Public Audit Act 2001.
Independence When carrying out the audit, we followed the independence requirements of the Auditor- General, which incorporate the independence requirements of the External Reporting Board. Other than the audit, we have no relationship with or interests in the Service.
Karen Young Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand
Annual Report 49 2015 - 2016 Information for the year ended 30 June 2016 the year for Financial
50 Annual Report 2015 - 2016
Financial overview
For the year ended 30 June 2016
The Parliamentary Service (the Service) was appropriated $56.9m in the financial year 2015/16 to administer the functions of the 51st Parliament and provide support services to members of the House of Representatives. Additional appropriations administered by the Service on behalf of the Crown include funding for party and member support, member salaries, depreciation and various travel and communications costs. Parliamentary Service Operational Expenditure:
Expenditure of $56.4m was recorded for the year against the appropriation and other revenue received by the Service leaving a surplus of $0.7m. This surplus arose due to some projects continuing into 2016/17.
On a functional level, providing building and operational management of the parliamentary precinct remains the largest cost driver within the Service. A total of $28.1m was spent on providing this service in 2015/16. This includes the significant cost of providing security services within and surrounding the precinct. Security at Parliament operates on a 24 x 7 x 365 basis so carries a significant operational cost. The precinct based security team also monitor and assist with safety and security matters for all 135 out of Parliament offices. In addition to those operational aspects, there is an ongoing programme of work to improve the security of the precinct by way of investment in technology, hardware and training. This programme of work is driven by three criteria – the need to keep all staff and visitors safe while enjoying New Zealand’s open and accessible Parliament; to meet the increased needs under new Health and Safety legislation; and to ensure Parliament is compliant with the government mandated Protective Security Requirements. Unfortunately the world continues to change, so Parliament’s security needs to be able to respond to any increase in threat and risk levels.
Information, communication and technology services cost the Service $15.4m in 2015/16. The majority of this cost was driven from providing ICT services to members and support staff. This includes providing hardware, network infrastructure, mobile computing, software services, cyber security and helpdesk functions.
The Service spent $7.8m on human resources support, finance, member services and advisory services within the 2015/16 financial year. Substantial investment within this cost has been made in enhancing the Service’s process management – with the ultimate goal of providing seamless cross-functional services to members and support staff. Particular emphasis is focussed on preparation for the next general election where multiple transitioning of members, out of Parliament offices and support staff will take place.
Parliamentary Library costs totalled $4.8m for 2015/16. This is the cost of providing research and information services to members and their support staff.
Annual Report 51 2015 - 2016
Relative Operational Spends - Parliamentary Service 2015/16
Capital Expenditure
The Service incurs capital expenditure both at a departmental level, as part of the normal course of Parliamentary Service business, as well as at a non-departmental level on behalf of the Crown.
Departmental Capital Expenditure
The Service incurred Departmental capital expenditure of $3.7m. The vast majority of this expenditure was incurred in upgrading a number of major IT systems and the network infrastructure.
Non-Departmental Multi Year Appropriation
The 2015/16 financial year was the last year in the 4 year non-departmental multi-year capital expenditure appropriation.
Total capital spend against the appropriation for the year was $8.5m. The major project and associated spend for the year was the repairs and renewal of the exterior of Parliament House. This is a once-in-25 years repairs to the exterior including the marble, grouting and waterproofing. Despite the complexity and a number of issues found during the three year work plan – the project came in within 1% of budget.
Other major projects include an enhancement of security around the precinct perimeter, replacing all light fittings within the Parliament House public areas with energy efficient
52 Annual Report 2015 - 2016
long-life LED lighting, re-carpeting four floors of the Executive Wing, re-carpeting areas within Parliament House, installation of electronic signage in the primary public interface areas of the precinct, and completing some disability accessibility initiatives which raised the Service’s Be.Accessible rating from Silver to Gold.
The 2016/17 Financial Year – looking ahead
The Parliamentary Service will face considerable cost pressures as we head into the 2016/17 financial year. A number of additional activities are required, putting strain on our established fiscal envelope.
Heightened security concerns stemming from both domestic and international events have increased the required level of protective security services the Service provides. In addition to these concerns and as part of our commitment to the health and safety of our people, work continues on upgrading the security measures within member offices across the country. Whilst some of this cost is met by party and member support funding, the Service will be contributing to this cost where more significant enhancements are deemed necessary.
The Service will continue to focus on its Business Process Management – the refining of our cross functional processes – as we head into the 2016/17 financial year as part of our preparation for the next general election.
2016/17 will also see the Service fully introduce our new remuneration framework which is designed to ensure the Service attracts and retains talent and is more effective in its succession planning.
The Service is also required to investigate the long term accommodation strategy for the parliamentary precinct as the lease on Bowen House, which houses much of the Office of the Clerk, the Service and various members and Ministers, nears its renewal date.
Annual Report 53 2015 - 2016
Statement of comprehensive revenue and expense For the year ended 30 June 2016
Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 Note $000 $000 $000 $000 Revenue 58,472 Crown 50,553 49,097 50,553 51,147 4,904 Departmental 2 5,868 5,037 5,585 5,716 581 Other revenue 2 682 1,042 758 599
63,957 Total revenue 57,103 55,176 56,896 57,462 Expenses 27,693 Personnel 3 21,499 20,973 22,318 22,643 5,096 Depreciation and amortisation 8 & 9 5,283 5,551 5,324 5,339 2,092 Capital charge 4 2,092 2,092 2,092 2,092 28,016 Other expenses 5 27,526 26,560 27,162 27,388
62,897 Total expenses 56,400 55,176 56,896 57,462
1,060 Surplus 703 - - - Other comprehensive revenue - ---- and expense Total comprehensive 1,060 703 - - - revenue and expense
Explanations of major variances against the original 2015/16 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.
54 Annual Report 2015 - 2016
Statement of financial position As at 30 June 2016
Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 Note $000 $000 $000 $000 Assets Current assets
3,536 Cash and cash equivalents 3,528 6,370 4,778 5,247 9,670 Debtors and other receivables 6 11,854 8,330 9,880 10,830
842 Prepayments 741 850 850 850 142 Inventory 7 79 45 45 45 14,190 Total current assets 16,202 15,595 15,553 16,972 Non-current assets
10,837 Property, Plant & Equipment 8 9,244 8,730 8,239 5,823 7,289 Intangible assets 9 7,276 8,471 8,574 10,001 18,126 Total non-current assets 16,520 17,201 16,813 15,824 32,316 Total assets 32,722 32,796 32,366 32,796 Liabilities Current liabilities
3,192 Creditors and other payables 10 3,836 4,000 4,000 4,000 1,060 Return of operating surplus 12 703 - - - 1,441 Employee entitlements 11 1,420 2,220 1,810 2,220 5,693 Total current liabilities 5,959 6,220 5,810 6,220 Non current liabilities 467 Employee entitlements 11 607 420 400 420 6,160 Total liabilities 6,566 6,640 6,210 6,640
26,156 Net assets 26,156 26,156 26,156 26,156 Taxpayers’ funds 26,156 Taxpayer funds 13 26,156 26,156 26,156 26,156 26,156 Total taxpayers’ funds 26,156 26,156 26,156 26,156
Explanations of major variances against the original 2015/16 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.
Annual Report 55 2015 - 2016
Statement of changes in taxpayers’ funds For the year ended 30 June 2016
Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 Note $000 $000 $000 $000
26,156 Balance as at 1 July 2015 26,156 26,156 26,156 26,156
Total comprehensive revenue and 1,060 703--- expense
Owner Transactions
Return of operating surplus to (1,060) 12 (703) - - - Crown
26,156 Balance as at 30 June 2016 26,156 26,156 26,156 26,156
Explanations of major variances against the original 2015/16 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.
56 Annual Report 2015 - 2016
Statement of cash flows For the year ended 30 June 2016
Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 Note $000 $000 $000 $000 Cash flows from operating activities 57,413 Receipts from Revenue Crown 48,592 49,097 50,112 50,147 5,495 Receipts from other revenue 6,491 6,129 6,663 6,365 (28,422) Payments to suppliers (26,821) (26,636) (26,592) (27,465)
(28,929) Payments to employees (21,405) (20,467) (21,995) (22,136) (2,092) Payments for capital charge (2,092) (2,092) (2,092) (2,092) 140 Goods and services tax (net) (21) - 217 - Net cash flow from operating 3,605 4,744 6,031 6,313 4,819 activities Cash flows from investing activities Receipts from sale of property, (77) plant and equipment and 4--- intangibles Purchase of property, plant and (1,356) (1,354) (1,125) (396) (465) equipment (3,474) Purchase of intangible assets (2,338) (3,375) (3,615) (3,885) Net cash flow from investing (4,907) (3,688) (4,500) (4,011) (4,350) activities Cash flows from financing activities: - Capital injections ---- (923) Return of operating surplus (1,060) - (1,060) - Net cash flow from financing (923) (1,060) - (1,060) - activities Net increase/(decrease) in cash (2,225) (8) 1,531 1,242 469 held Cash at the beginning of the 5,761 3,536 4,839 3,536 4,778 year 3,536 Cash at the end of the year 3,528 6,370 4,778 5,247
Explanations of major variances against the original 2015/16 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.
Annual Report 57 2015 - 2016
Statement of cash flows(continued) For the year ended 30 June 2016 Reconciliation of net surplus/(deficit) to net cash flow from operating activities
Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 Note $000 $000 $000 $000 1,060 Net surplus 703---
Add/(less) non-cash items 5,096 Depreciation and amortisation 5,283 5,551 5,324 5,339 Inc/(Dec) in non-current 78 140--- employee entitlements
23 Inc/(Dec) in GST Payable (27) (21) 217 - 5,197 Total non-cash items 5,396 5,530 5,541 5,339 Add/(less) movements in deferrals and accruals (868) (Inc)/Dec in debtors (2,184) 50 176 50
34 (Inc)/Dec in prepayments 101 - (394) (1,000)
(98) (Inc)/Dec in inventory 63 - 97 - Inc/(Dec) in creditors and other (637) 675 21 591 - payables Inc/(Dec) in provision for current (1,127) (21) 430 302 430 employee entitlements Total net movement in (2,696) (1,366) 501 772 (520) working capital items Add/(Less) investing activity items Loss/(Gain) on disposal of 44 property, plant and equipment 11--- and intangibles Net cash flow from operating 3,605 4,744 6,031 6,313 4,819 activities
The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) 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 original 2015/16 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.
58 Annual Report 2015 - 2016
Statement of commitments As at 30 June 2016
Non-cancellable operating lease commitments
The Service has long-term leases on its premises in Wellington. The annual lease payments are subject to three yearly reviews. The amount disclosed below as future commitments is based on the current rental rates.
2015 2016
$000 $000 Non-cancellable operating lease commitments
7,377 Not later than one year 7,396
19,386 One to five years 13,471
5,628 More than five years 5,951
32,391 Total non-cancellable operating lease commitments 26,818
The Service leases four properties. Bowen House is a lease covering levels Ground to 21 for office accommodation, two residential units and car parks. No. 3 the Terrace is for select committee and meeting room accommodation with a separate lease at No.1 The Terrace used for Parliamentary TV. The Thorndon Store is used as an off-site storage facility only.
There are no contingent rents; they are all fixed term. There are no restrictions imposed by the lease arrangements and only the No. 3 The Terrace lease is cancellable after 24 years from the start of the lease.
There is an escalation clause on No. 3 The Terrace of an annual fixed increase in rent at 3% compounding as well as regular market-rate reviews. There are no escalation clauses for the Bowen House, No. 1 The Terrace or Thorndon Store leases.
Bowen House has two rights of lease renewal dates every eight years with a final expiry of 14 December 2034. This lease is currently subject to rent review effective from December 2014. The rent review is currently in arbitration. The result of this arbitration may cause either a contingent liability or contingent asset as at 30 June 2016. Given the ongoing nature of the arbitration the Service is unable to reliably estimate the outcome. The Thorndon Store lease renewal date is 1 September 2021. The No. 3 the Terrace has no lease renewal dates; No. 1 The Terrace has a termination date of 31 December 2018. Other non-cancellable commitments
The Service has entered into non-cancellable contracts for computer support, building services and other contracts for services.
The notes to the accounts form part of and are to be read in conjunction with these financial statements.
Annual Report 59 2015 - 2016
Operating leases as a lessor
The Service has three non-cancellable leases related to retail operations in Bowen House. The Service also has cancellable leases related to accommodation tenancies in Bowen House and office tenancies in Bowen House and Parliament House.
2015 2016
$000 $000 Non-cancellable operating leases
494 Not later than one year 927
1,193 One to five years 1,248
- More than five years -
1,687 Total non-cancellable operating leases 2,175
Statement of contingent liabilities and contingent assets As at 30 June 2016
Contingent liabilities
There were no quantifiable contingent liabilities in 2016 (2015: nil). The Service has recently completed an audit on compliance with the Holidays Act 2003 and is currently working through recommendations. The financial impact of the recommendations is yet to be determined.
Unquantifiable contingent assets
There are no unquantifiable contingent assets in 2016 (2015: nil).
The notes to the accounts form part of and are to be read in conjunction with these financial statements.
60 Annual Report 2015 - 2016
Notes to the financial statements
Note 1 Statement of accounting policies
Reporting entity
Parliamentary Service (the “Service”) is a Government Department as defined by the Public Finance Act 1989 (PFA) and is domiciled and operates in New Zealand. The relevant legislation governing the Service’s operations includes the PFA and the Parliamentary Service Act 2000. The Service’s ultimate parent is the New Zealand Crown.
In addition the Service has reported on Crown activities that it administers.
The Service’s primary objective is to provide services to members of Parliament and other agencies rather than making a financial return.
The Service has designated itself as a public benefit entity (PBE) for financial reporting purposes.
The financial statements of the Service are for the year ended 30 June 2016. The financial statements were authorised for issue by the General Manager on 30 September 2016.
Basis of preparation
The financial statements have been prepared on a going concern basis, and the accounting policies have been applied consistently throughout the period.
Statement of compliance
The financial statements of the Service have been prepared pursuant to the Public Finance Act 1989, which include the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP), and Treasury Instructions.
The financial statements have been prepared in accordance and compliance with Tier 1 PBE accounting standards.
Standards issued and not yet effective and not early adopted
In 2015, the External Reporting Board issued Disclosure Initiative (Amendments to PBE IPSAS 1), 2015 Omnibus Amendments to PBE Standards, and Amendments to PBE Standards and Authoritative Notice as a Consequence of XRB A1 and Other Amendments. These amendments apply to PBEs with reporting periods beginning on or after 1 January 2016. The Service will apply these amendments in preparing its 30 June 2017 financial statements. The Service expects there will be no effect in applying these amendments.
Annual Report 61 2015 - 2016
Measurement base
The financial statements have been prepared on a historical cost basis.
Presentation currency and rounding
The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the Service is New Zealand dollars.
Changes in accounting policies
There have been no changes in accounting policy during the year ending 30 June 2016.
Restatement of prior year comparatives
Last year’s figures have been restated where required for comparability.
The following significant accounting policies, which materially affect the measurement of financial results and financial position, have been applied consistently to all periods presented in these financial statements.
Significant accounting policies
Revenue
Revenue Crown Revenue from the Crown is measured based on the Service’s funding entitlement for the reporting period. The funding entitlement is established by Parliament when it passes the Appropriation Acts for the financial year. The amount of revenue recognised takes into account any amendments to appropriations approved in the Appropriation (Supplementary Estimates) Act for the year and certain other unconditional funding adjustments formally approved prior to balance date.
There are no conditions attached to the funding from the Crown. However, the Service can incur expenses only within the scope and limits of its appropriations.
The fair value of Revenue Crown has been determined to be equivalent to the funding entitlement.
Departmental revenue Departmental revenue is recognised when earned.
Rental revenue Rental revenue under an operating sublease is recognised as revenue on a straight-line basis over the lease term.
62 Annual Report 2015 - 2016
Capital Charge The capital charge is recognised as an expense in the period to which the charge relates.
Foreign Currency Foreign exchange transactions (including those for which forward foreign exchange contracts are held) are translated into New Zealand dollars using the spot exchange rates at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the surplus or deficit.
Leases
Finance Leases A finance lease is a lease that transfers to the lessee substantially all of the risks and rewards incidental to ownership of an asset, whether or not title is eventually transferred.
At the commencement of the lease term, the Service recognises finance leases as assets and liabilities in the Statement of Financial Position at the lower of the fair value of the leased item and the present value of the minimum lease payments.
The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to whether the Service will obtain ownership at the end of the lease term, the asset is fully depreciated over the shorter of the lease terms and its useful life.
Operating leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset.
Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.
Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term.
Cash and cash equivalents
Cash and cash equivalents include cash on hand and deposits held at call with banks.
The Service is only permitted to expend its cash and cash equivalents within the scope and limits of its appropriations.
Debtors and other receivables
Debtors and receivables are recorded at their fair value, less any provision for impairment.
A receivable is considered impaired when there is evidence that the Service will not be able to collect the amount due. The amount of the impairment is the difference between the carrying amount of the receivable and the present value of the amounts expected to be collected.
Annual Report 63 2015 - 2016
Inventory
Inventory held for distribution or consumption in the provision of services is measured at cost adjusted, when applicable, for any loss of service potential. The Service applies the weighted average cost method.
Inventory held for sale is valued at the lower of cost and net realisable value (using the weighted average cost method).
The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the surplus or deficit in the period of the write-down.
Property, plant and equipment
Property, plant, and equipment consists of furniture, plant and equipment, office equipment, computers, motor vehicles, leasehold improvements, and telecommunication equipment.
Property, plant, and equipment acquired through non-exchange transactions is measured at fair value at the date of acquisition.
Property, plant, and equipment is measured at cost, less accumulated depreciation and impairment losses.
All property, plant and equipment costing more than $2,000 excluding GST is capitalised and recorded at historical cost.
Additions
The cost of an item of property, plant, and equipment is recognised as an asset if it is probable that future economic benefits or service potential associated with the item will flow to the Service and the cost of the item can be measured reliably.
Work in progress is recognised at cost less impairment and is not depreciated. The total cost of this work is transferred to the relevant asset category on its completion.
Disposals
Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the statement of comprehensive revenue and expense. When a revalued asset is sold, the amount included in the revaluation reserve in respect of the disposed asset is transferred to taxpayers’ funds.
Subsequent costs
Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Service and the cost of the item can be measured reliably. The costs of day to day servicing of property, plant and equipment are recognised in the statement of comprehensive revenue and expense as they are incurred.
64 Annual Report 2015 - 2016
Depreciation
Depreciation is provided on a straight-line basis on all property, plant, and equipment at rates that will write-off the cost of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of property, plant, and equipment have been estimated as follows:
Furniture 3 - 10 years 10% - 33.3% Plant and equipment 3 - 10 years 10% - 33.3% Office equipment 3 - 10 years 10% - 33.3% Computer systems 3 - 7 years 14.3% - 33.3% Motor vehicles 5 years 20% Leasehold property 3 - 34 years 2.9% - 33.3% Telecommunications equipment 3 - 7 years 14.3% - 33.3%
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated remaining useful lives of the improvements, whichever is the shorter.
The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year-end.
Assets are purchased on behalf of members of Parliament including for their out-of- Parliament offices. The useful life and associated depreciation rates for these assets are aligned to the Parliamentary term or the remainder of the Parliamentary term.
Intangible assets
Software acquisition and development Acquired computer software licenses are capitalised based on the costs incurred to acquire and bring to use the specific software.
Costs that are directly associated with the development of software for internal use by the Service are recognised as an intangible asset. Direct can costs include the software development, employee costs, and an appropriate portion of relevant overheads. Staff training costs are recognised as an expense when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs of software updates or upgrades are only capitalised when they increase the usefulness or value of the software.
Amortisation The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit.
Annual Report 65 2015 - 2016
The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:
Acquired computer software 3 - 7 years 14.3% - 33.3%
Impairment of property, plant, and equipment and intangible assets
The Service does not hold any cash-generating assets. Assets are considered cash-generating where their primary objective is to generate a commercial return.
Non-cash generating assets Intangible assets subsequently measured at cost that have an indefinite useful life, or are not yet available for use, are tested annually for impairment.
Property, plant, and equipment and intangible assets that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the Service would, if deprived of the asset, replace its remaining future economic benefits or service potential.
If an asset’s carrying amount exceeds its recoverable amount, 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.
Creditors and other payables
Creditors and other payables are initially measured at face value.
Employee entitlements
Short-term employee entitlements Employee benefits expected to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave.
A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the history of sick leave taken by all employees for the last three years to derive the average amount of accrued sick leave taken over and above the entitlement for the year.
66 Annual Report 2015 - 2016
Long-term employee entitlements Employee benefits that are due to be settled beyond 12 months after the end of the reporting period in which the employee renders the related service, such as long service leave and retiring leave, are calculated using the Treasury guidance. The calculations are based on:
likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlements information; and
the present value of the estimated future cash flows.
Expected future payments are discounted using market yields on government bonds at balance date with terms to 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.
Superannuation schemes
Defined contribution schemes Obligations for contributions to the State Sector Retirement Savings Scheme, Kiwi Saver and the Government Superannuation Scheme (GSF) are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit as incurred.
Defined benefit schemes The Service belongs to the GSF. GSF is a defined benefit plan. Insufficient information is available to use defined benefit accounting; as it is not possible to determine from the terms of the scheme the extent to which the surplus or deficit will affect future contributions by individual employers, as there is no prescribed basis for allocation. The Service has employees who are members of the Government Superannuation Fund. This is a fully funded Government scheme and as a result no liability is recognised. The scheme is therefore accounted for as a defined contribution scheme
Provisions
A provision is recognised for future expenditure of uncertain amount or timing when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
Provisions are not recognised for net deficits from future operating activities. Provisions are measured at the present value of the expenditure and are discounted using market yields on government bonds at balance date with the terms to maturity that match, as closely as possible, the estimated timing of the future cash flows. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”.
Annual Report 67 2015 - 2016
Restructuring A provision for restructuring is recognised when an approved detailed formal plan for the restructuring has either been announced to those affected, or for which implementation has already commenced.
Onerous contracts A provision for onerous contracts is recognised when the expected benefits or service potential to be derived from a contract are lower than the unavoidable cost of meeting the obligations under the contract.
The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.
Taxpayers’ funds
Taxpayers’ funds is the Crown’s investment in the Service and is measured as the difference between total assets and total liabilities.
Commitments
Commitments are future expenses and liabilities to be incurred on contracts that have been entered into as at balance date. Information on non-cancellable lease commitments is reported in the statement of commitments.
Goods and services tax (GST)
The Financial Statements, including appropriation statements, are exclusive of GST, except for Creditors and Debtors, which are GST inclusive. All other statements and notes are GST exclusive.
The amount of GST owing to or from the Inland Revenue Department at balance date, being the difference between Output GST and Input GST, is included in Creditors or Debtors, as appropriate.
Commitments and contingencies are disclosed excluding GST.
Income tax
The Service is a public authority and consequently is exempt from the payment of income tax in terms of the Income Tax Act 2007. Accordingly, no provision for income tax has been made.
Statement of cost allocation policies
The Service has determined the cost of outputs using the cost allocation system outlined below.
68 Annual Report 2015 - 2016
Direct costs are those costs directly attributed to an output. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific output.
Direct costs are charged directly to outputs. Indirect costs are charged to outputs based on cost drivers and related activity or usage information. Depreciation and capital charge are charged on the basis of asset utilisation. Personnel costs are charged based on actual time incurred.
Critical accounting estimates and assumptions
In preparing these financial statements, estimates and assumptions have been made concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are referred to below:
Useful lives of software The useful life of software is determined at the time the software is acquired and brought into use and is reviewed at each reporting date for appropriateness. For internally generated software developed by the Service, the life is based on historical experience with similar systems as well as anticipation of future events, which may impact their useful life, such as changes in technology.
Critical judgements in applying accounting policies
Management has not exercised any significant critical judgements in applying accounting policies for the year ended 30 June 2016.
Budget and forecast figures
Basis of the budget and forecast figures The 2016 budget figures are for the year ended 30 June 2016 and were published in the 2014/15 annual report. They are consistent with the Service’s best estimate financial forecast information submitted to Treasury for the Budget Economic and Fiscal Update (BEFU) for the year ending 2015/16. The 2017 forecast figures are for the year ending 30 June 2017, which are consistent with the best estimate financial forecast information submitted to Treasury for the BEFU for the year ending 30 June 2017.
The forecast financial statements have been prepared as required by the PFA to communicate forecast financial information for accountability purposes.
The budget and forecast figures are unaudited and have been prepared using the accounting policies adopted in preparing these financial statements. The 30 June 2016 forecast figures have been prepared in accordance with PBE FRS 42 Prospective Financial Statements and comply with PBE FRS 42. The forecast financial statements were approved for issue on 1 April 2016. The General Manager is responsible for the forecast financial statements,
Annual Report 69 2015 - 2016
including the appropriateness of the assumptions underlying them and all other required disclosures.
While the Service regularly updates its forecasts, updated forecast financial statements for the year ending 30 June 2017 will not be published.
The forecast financial figures contained in these financial statements reflect the Service’s purpose and activities and are based on a number of assumptions on what may occur during the 2016/17 year. The forecast figures have been compiled on the basis of existing government policies and Ministerial expectations at the time the Main Estimates were finalised.
Significant assumptions used in preparing the forecast financials
The main assumptions, which were adopted as at 1 April 2016, were as follows:
The Service’s activities and output expectations will remain substantially the same as the previous year focusing on the Government’s priorities.
Personnel costs were based on 270 full-time equivalent staff, which takes into account staff turnover.
Operating costs were based on historical experience and other factors that are believed to be reasonable in the circumstances and are the Service’s best estimate of future costs that will be incurred. Remuneration rates are based on current wages and salary costs, adjusted for anticipated remuneration changes.
Estimated year-end information for 2015/16 was used as the opening position for the 2016/17 forecasts.
70 Annual Report 2015 - 2016
Note 2: Departmental and other revenue
Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 $000 $000 $000 $000 2,958 ICT services including network support 2,805 2,564 2,600 2,600
1,168 Services to the Office of the Clerk 1,962 1,867 1,867 1,867
998 Rental revenue 1,008 888 950 950
148 Parliament shop trading 163 100 150 150
68 Services to other agencies 75 50 65 65
145 Other 537 610 711 683
5,485 Total departmental and other revenue 6,550 6,079 6,343 6,315
Note 3: Personnel costs
Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 $000 $000 $000 $000 28,345 Salaries and wages 20,839 20,660 21,753 22,348
Employer contribution to defined 286 218 225 218 206 contribution plans* Increase/(Decrease) in employee (1,049) 365 12 266 12 entitlements
111 Other 77 76 81 77
27,693 Total personnel costs 21,499 20,973 22,318 22,643
* Employer contributions to defined contribution plans include contributions to the State Sector Retirement Savings Scheme, KiwiSaver, and the Government Superannuation Fund.
Note 4: Capital charge
The Service pays a capital charge to the Crown on taxpayers’ funds as at 30 June and 31 December each year. The capital charge for the year ended 30 June 2016 was $2.092 million (2015 $2.092 million) at the rate of 8% (2015: 8%).
Annual Report 71 2015 - 2016
Note 5: Other expenses Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 $000 $000 $000 $000 Fees to Auditor for audit of financial 108 115 108 110 108 statements 11 Impairment of intangible assets - (note 9) - - - -
5,314 Operating lease rentals 5,258 5,306 5,255 8,172
1,358 Consultancy 1,541 750 1,652 2,652
7,152 Information technology costs 6,662 6,855 6,855 7,108
4,122 Maintenance 4,020 4,107 4,107 4,612
3,823 Premises costs and utilities 3,703 3,637 3,637 3,901
298 Restructuring costs 348 - 60 -
Net loss on disposal of property, plant, - 11--- and equipment
5,830 Other expenses 5,868 5,797 5,486 835
28,016 Total other expenses 27,526 26,560 27,162 27,388
Note 6: Debtors and other receivables Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 $000 $000 $000 $000 9,089 Debtor Crown 11,050 8,030 9,530 10,530
284 Departmental 344 - - -
297 Other debtors 460 300 350 300
9,670 Total debtors and receivables 11,854 8,330 9,880 10,830
Debtor Crown originates from non-exchange transactions; all the others originate from exchange transactions.
Departmental incorporates payments made on behalf of Parliamentary Service Crown activity, the Parliamentary Counsel Office and the Office of the Clerk.
72 Annual Report 2015 - 2016
The Service had not yet been reimbursed for these payments at balance date. The carrying value of debtors and other receivables approximates their fair value. The aging profile of receivables at year end is detailed below:
Actual Actual
2015 2016
$000 $000 9,670 Not past due 11,839
- Past due 1-30 days 3
- Past due over 30 days 12
9,670 Total 11,854
Note 7: Inventory
Inventory consists of items held for resale in the Parliamentary Shop and some computer equipment. Inventory is carried at the lower of cost or net realisable value. The Parliamentary Service applies a weighted average cost formula. Inventory is tested for impairment annually.
The write-down of inventories amounted to $nil (2015: $2k). No inventories are pledged as security for liabilities or subject to retention of title clauses.
Actual Actual
2015 2016
$000 $000 Held for distribution
Inventories held for use in the provision of goods and 104 46 services
Commercial activities
38 Shop stock held for sale 33
142 Total inventory 79
Annual Report 73 2015 - 2016
Note 8: Property, plant and equipment
Cost or Furniture Computers Office Leasehold Motor Plant & Teleco Work in Total valuation equipment Property Vehicles Equipment Equipment Progress Improvements
all units $000
Balance at 1 3,445 11,403 1,549 20,487 143 4,574 742 596 42,939 July 2014
Additions 5 29 24 191 77 12 17 1,023 1,378
Transfers from work in 142 688 3 161 - 407 - (1,401) - progress
Adjustments - 2 - - - - - (2) -
Disposals (26) (100) (90) (56) (94) (11) - - (377)
Write Off ------
Balance at 30 3,566 12,022 1,486 20,783 126 4,982 759 216 43,940 June 2015 Balance at 1 3,566 12,022 1,486 20,783 126 4,982 759 216 43,940 July 2015
Additions - 129 62 278 - - - 885 1,354
Transfers from work in - 243 96 127 - 17 - (483) - progress
Adjustments ------
Disposals - (1,006) (52) - - (208) - - (1,266)
Write Off ------
Balance at 30 3,566 11,388 1,592 21,188 126 4,791 759 618 44,028 June 2016
74 Annual Report 2015 - 2016
Furniture Computers Office Leasehold Motor Plant & Teleco Work in Total equipment Property Vehicles Equipment Equipment Progress Improvements
all units $000
Accumulated depreciation and impairment losses
Balance at 1 (3,274) (8,968) (1,399) (11,415) (39) (4,362) (714) - (30,171) July 2014
Depreciation (111) (1,511) (69) (1,241) (26) (278) (17) - (3,253) expense
Adjustments ------
Eliminate on 26 80 86 70 48 11 - - 321 disposal
Write Off ------
Balance at 30 (3,359) (10,399) (1,382) (12,586) (17) (4,629) (731) - (33,103) June 2015 Balance at 1 (3,359) (10,399) (1,382) (12,586) (17) (4,629) (731) - (33,103) July 2015 Depreciation (65) (1,235) (72) (1,355) (25) (167) (17) - (2,936) expense
Adjustments ------
Eliminate on - 1,006 41 - - 208 - - 1,255 Disposal
Write Off ------
Balance at 30 (3,424) (10,628) (1,413) (13,941) (42) (4,588) (748) - (34,784) June 2016
Carrying amounts
At 30 June 171 2,435 150 9,072 104 212 28 596 12,768 2014
At 30 June 207 1,623 104 8,197 109 353 28 216 10,837 2015
At 30 June 142 760 179 7,247 84 203 11 618 9,244 2016
Annual Report 75 2015 - 2016
Note 9: Intangibles
Internally Acquired generated Work in all units $000 Software software progress Total Cost or valuation
Balance at 1 July 2014 8,911 392 1,341 10,644
Additions 1,197 490 1,798 3,485
Transfers from work in 704 607 (1,311) - progress
Disposals (127) - - (127)
Impairment (11) - - (11)
Balance at 30 June 2015 10,674 1,489 1,828 13,991
Balance at 1 July 2015 10,674 1,489 1,828 13,991
Additions 14 - 2,324 2,338
Adjustments 9 (9) - -
Transfers from work in 2,288 - (2,288) - progress
Disposals (145) - - (145)
Impairment - - - -
Balance at 30 June 2016 12,840 1,480 1,864 16,184
Accumulated amortisation and impairment losses
Balance at 1 July 2014 (4,795) (141) - (4,936)
Amortisation expense (1,581) (262) - (1,843)
Eliminate on disposal 77 - - 77
Balance at 30 June 2015 (6,299) (403) - (6,702)
Balance at 1 July 2015 (6,299) (403) - (6,702)
Amortisation expense (2,103) (244) - (2,347)
Eliminate on disposal 141 - - 141
Balance at 30 June 2016 (8,261) (647) - (8,908)
Internally Acquired Work in Carrying amounts generated Total Software progress software
At 30 June 2014 4,116 251 1,341 5,708
At 30 June 2015 4,375 1,086 1,828 7,289
At 30 June 2016 4,579 833 1,864 7,276
76 Annual Report 2015 - 2016
Note 10: Creditors and other payables Unaudited
Main Supp Actual Actual Estimates Estimates Forecast 2015 2016 2016 2016 2017 $000 $000 $000 $000 $000 Creditors and other payables under exchange transactions 469 Trade creditors 156 3,500 3,500 3,500
2,440 Accrued expenses 3,425 - - -
2,909 Total under exchange transactions 3,581 3,500 3,500 3,500
Creditors and other payables under non-exchange transactions 1 Accrued FBT expense - - - -
282 GST payable (receivable) 255 500 500 500
283 Total under non-exchange transactions 255 500 500 500
3,192 Total creditors and other payables 3,836 4,000 4,000 4,000
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.
Note 11: Employee entitlements Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 $000 $000 $000 $000 Current Liabilities
352 Retirement and long service leave 367 555 452 862
1,069 Annual leave 1,021 1,665 1,358 1,358
20 Sick leave 32 - - -
1,441 Total current portion 1,420 2,220 1,810 2,220
Non-current liabilities
467 Retirement and long service leave 607 420 400 420
467 Total non-current portion 607 420 400 420
1,908 Total employee entitlements 2,027 2,640 2,210 2,640
Annual Report 77 2015 - 2016
Employee benefits
Treasury guidance was used to estimate the value of long service leave, retirement leave and sick leave as at 30 June 2016. The major economic assumptions adopted in the valuation process for long service and retirement leave were:
Salary increase rate: 2.00 – 3.00% per annum (2015: 1.4 - 2.1%)
Discount Rate: 1.95 – 3.13% per annum (2015: 2.93 – 4.39%)
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
2015 2016
$000 $000 1,060 Net surplus 703
1,060 Net surplus before other expenses 703
1,060 Total return of operating surplus 703
The return of operating surplus to the Crown is required to be paid by 31 October 2016.
Note 13: Taxpayers’ funds
Actual Actual
2015 2016
$000 Note $000 26,156 Balance at 1 July 2015 26,156
1,060 Surplus for year 703
Owner Transactions
(1,060) Return of operating surplus to the Crown 12 (703)
26,156 Balance at 30 June 2016 26,156
78 Annual Report 2015 - 2016
Note 14: Related party transactions
The Service is a wholly owned entity of the Crown.
Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and conditions no more or less favourable than those that it is reasonable to expect the Service would have adopted in dealing with the party at arm’s length in the same circumstances. Further, transactions with other government agencies (for 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.
Significant transactions with government-related entities
The Service has received funding from the Crown of $51m (2015: $58m) to provide services to the public, House of Representatives and support services and/or accommodation to other government agencies, as part of a Service Level Agreement, for the year ended 30 June 2016. These agencies are:-
Office of the Clerk of the House of Representatives
Parliamentary Counsel Office
Key management personnel remuneration
Actual Actual
2015 2016
$000 $000 Leadership Team, including Chief Executive
1,303 Remuneration 1,676
There are no other employee benefits.
Key management personnel include the General Manager and six members of the Senior Management Team, 7 FTE’s (2015: 6 FTE’s). Note 15: Events after balance date
There were no significant events after balance date (2015: nil). As at 30 June the Service was undertaking a review to the operating model for services provided to members of Parliament.
Annual Report 79 2015 - 2016
Note 16: Financial Instruments 16A - Financial instrument categories
The carrying amounts of financial assets and liabilities in each of the financial instrument categories are as follows: Unaudited Main Supp
Actual Actual Estimates Estimates Forecast
2015 2016 2016 2016 2017
$000 $000 $000 $000 $000 Financial assets measured at amortised costs Loans and receivables
3,536 Cash and cash equivalents 3,528 6,370 4,778 5,247
9,670 Receivables 11,854 8,330 9,880 10,830
13,206 Total loans and receivables 15,382 14,700 14,658 16,077
Financial liabilities measured at amortised costs
3,192 Creditors and other payables 3,836 4,000 4,000 4,000
16B - Financial instruments risks
The Service is party to financial instrument arrangements as part of its everyday operations. These include instruments such as bank balances, accounts receivable, and accounts payable. The fair value of the Service’s financial instruments is the same as the carrying value.
The Service does not have any gains or losses on its financial instruments and no impairments have been recognised to date.
All financial assets and liabilities are non-derivative in form and function and are neither available for sale nor held to maturity.
The fair value of the financial instruments is deemed notmaterially different from valuation at amortised cost. As a result, the carrying value of the instruments is at fair value.
Credit risk
Credit risk is the risk that a third party will default on its obligations to the Service, causing the Service to incur a loss.
In the normal course of its business, credit risk arises from debtors. The maximum exposure from trade debtors is the value of the non-Government debtors i.e. $460k (2015: $297k). Default is considered by management to be unlikely and the probable exposure has been determined as negligible. There were no changes in receivables or payables during the year that can be attributed to credit risk.
80 Annual Report 2015 - 2016
The Service is only permitted to deposit funds with Westpac Banking Corporation (Westpac), a registered bank, and enter into foreign exchange forward contracts with the New Zealand Debt Management Office (NZDMO).
The Service holds cash with Westpac. Westpac is part of the Crown Retail Deposit Guarantee Scheme and so all deposits up to $1 million held with Westpac are guaranteed by the Crown.
The Service does not require any collateral or security to support financial instruments with financial institutions that it deals with, or with the NZDMO, as these entities have high credit ratings. For its other financial instruments, the Service does not have significant concentrations of credit risk. The Service is not exposed to any other concentrations of credit risk.
Credit facilities
The Service does not have bank overdraft facilities as at 30 June 2016. The Service has a letter of credit with Westpac for $10,000 for the purpose of staff cashing pay and expense reimbursement cheques.
Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
The Service has no significant exposure to currency rate risk on its financial instruments.
Interest rate risk
Interest rate risk is the risk that the fair value of a financial instrument will fluctuate, or the cash flows from a financial instrument will fluctuate, due to changes in market interest rates.
The Service has no interest bearing financial instruments and, accordingly, has no exposure to interest rate risk.
Liquidity risk
Liquidity risk is the risk that the Service will encounter difficulty raising liquid funds to meet commitments as they fall due.
In meeting its liquidity requirements, the Service closely monitors its forecast cash requirements with expected cash drawdowns from the New Zealand Debt Management Office. The Service maintains a target level of available cash to meet liquidity requirements.
The Service considers that it does not have a significant liquidity risk as it ensures it has adequate working capital coverage at all times.
Annual Report 81 2015 - 2016
Exposure to risk
The Service is not aware of any exposure to risk regarding financial instruments that would have a significant impact on operations. Note 17: Capital management
The Service’s capital is its equity (or taxpayers’ funds), which comprise general funds. Equity is represented by net assets.
The Service manages its revenues, expenses, assets, liabilities, and general financial dealings prudently. The Service’s equity is largely managed as a by-product of managing revenue, expenses, assets, liabilities and compliance with the government budget processes, the Public Finance Act 1989 and Treasury Instructions.
The objective of managing the Service’s equity is to ensure the Service effectively achieves its goals and objectives for which it has been established, whilst remaining a going concern.
Note 18: Explanation of major variances against budget
Statement of comprehensive revenue and expense
The Main Estimates operating appropriation of $55.176m was revised to $56.896m due to:
Expense transfer from 2014/15 to 2015/16 - $1.056m increase
Cost recovery for providing information services to the Office of the Clerk - $0.558m increase
Transfer funding from Crown Multi Year Appropriation to Departmental to progress the Future Accommodation Strategy - $0.500m increase
Rent and other operating costs from new sublease - $0.179m increase
Expense transfer from 2015/16 to 2016/17 - $0.600m decrease
Consultancy expenses are higher due to consultants for 6th Appropriation Review Committee, the Service operating model review and the future accommodation strategy, which were not included in the Main Estimates.
82 Annual Report 2015 - 2016
Statement of financial position
Cash and cash equivalents are less than Main Estimates budgeted but debtors and other receivables (mainly Crown funding not drawn-down) are higher than Main Estimates. This resulted from active cash management and improved cash forecasting.
Employee entitlements are higher than Main Estimates. The increase aligned with the increase in personnel costs.
Annual Report 83 2015 - 2016
Appropriation statements
The following statements report information about the expenses and capital expenditure incurred against each appropriation administered by the Service for the year ended 30 June 2016. Statement of departmental expenses and capital expenditure against appropriations
For the year ended 30 June 2016
Unaudited Main Supp
Actual Actual Estimates Estimates
2015 2016 2016 2016
$000 Note $000 $000 $000 Departmental output expenses*
6,831 Services to members - - -
433 Support services to the Speaker 350 225 366
7,264 Total departmental output expenses 350 225 366
Multi Category Appropriations*
Parliamentary information, 15,093 15,403 14,073 15,809 communications & technology services
26,799 Building & operations management 28,099 27,685 27,933
4,601 Parliamentary library 4,750 4,738 4,738
Personnel, accounting and advisory 9,140 services to members and other 7,798 8,455 8,050 parliamentary agencies
55,633 Total multi category appropriations 56,050 54,951 56,530
62,897 Total appropriation for output expenses 56,400 55,176 56,896 Parliamentary Service - capital expenditure*
4,863 Permanent Legislative Authority 3,692 4,500 4,011
*Performance reporting on these outputs is contained in this Annual Report.
84 Annual Report 2015 - 2016
Statement of departmental expenses and capital expenditure incurred without appropriation or other authority or in excess of an existing appropriation or other authority
For the year ended 30 June 2016
There was no Departmental unappropriated expenditure and capital expenditure in 2016 (2015: nil).
Statement of departmental capital injections without, or in excess of, authority
For the year ended 30 June 2016
The Service did not receive any capital injections during the year without, or in excess of authority in 2016 (2015: nil).
Annual Report 85 2015 - 2016 Statements Financial Service Parliamentary Crown ended 30 June 2016 the year for
86 Annual Report 2015 - 2016
Non-departmental statements and schedules
For year ended 30 June 2016
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 2016
Unaudited Main Supp
Actual Actual Estimates Estimates
2015 2016 2016 2016
$000 $000 $000 $000
190 Revenue 205 - -
190 Total non-departmental revenue 205--
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 2016.
Annual Report 87 2015 - 2016
Schedule of non-departmental expenses
For year ended 30 June 2016
Unaudited Main Supp
Actual Actual Estimates Estimates
2015 2016 2016 2016
$000 $000 $000 $000 Expenditure
Other expenses incurred by the Crown
24,103 Annual 20,762 21,578 22,678
44,564 Other 59,520 62,905 63,839
Purchases and development of capital assets by the 5,562 8,469 9,621 9,793 Crown
2,896 GST expensed 3,600 - -
77,125 Total non-departmental expenses 92,351 94,104 96,310
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 2016.
88 Annual Report 2015 - 2016
Schedule of non-departmental assets
As at 30 June 2016
Unaudited Main Supp
Actual Actual Estimates Estimates
2015 2016 2016 2016
$000 Notes $000 $000 $000 Current Assets
16,696 Cash and cash equivalents 2 11,850 22,223 20,904
9 Debtors 2 & 3 14 15 9
172 Prepayments 3 91 50 172
16,877 Total current assets 11,955 22,288 21,085 Non-current assets
433,206 Property, plant and equipment 4 471,183 427,437 428,998
450,083 Total non-departmental assets 438,138 449,725 450,083
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 2016.
Annual Report 89 2015 - 2016
Schedule of non-departmental liabilities and revaluation reserves
As at 30 June 2016
Unaudited Main Supp
Actual Actual Estimates Estimates
2015 2016 2016 2016
$000 Notes $000 $000 $000 Liabilities Current liabilities
2,744 Creditors 5 3,151 4,065 2,741
800 Employee entitlements 1,323 - 801
3,544 Total current liabilities 4,474 4,065 3,542 Non current liabilities
17 Employee entitlements - - 20
17 Total non current liabilities --20
Revaluation reserve
63,000 Land revaluation reserve 4 & 6 63,000 63,000 63,000
163,375 Building revaluation reserve 4 & 6 212,769 163,375 163,375
7,366 Antique and art revaluation reserve 4 & 6 7,366 7,366 7,366
22,519 Library collection revaluation reserve 4 & 6 - 22,519 22,519
256,260 Total revaluation reserve 283,135 256,260 256,260
Total non-departmental liabilities and 259,821 287,609 260,325 259,822 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 2016.
90 Annual Report 2015 - 2016
Statement of non-departmental commitments
For the year ended 30 June 2016
There are no non-departmental operating commitments (2015: 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
2015 2016
$000 $000 Capital commitments
4,383 Buildings 1,050
4,383 Total commitments 1,050
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 2016.
Annual Report 91 2015 - 2016
Statement of non-departmental contingent liabilities and contingent assets
For the year ended 30 June 2016
Quantifiable contingent liabilities
Actual Actual
2015 2016
$000 $000 Contingent liability
287 Members’ Superannuation 247
287 Total contingent liability 247
Contingent assets
The Service on behalf of the Crown has no contingent assets (2015: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 2016.
92 Annual Report 2015 - 2016
Notes to the non-departmental financial statements
Note 1: Statement of accounting policies
Reporting entity
These non-departmental schedules and statements present financial information on public funds managed by the Parliamentary Service on behalf of the Crown. Further details of the department’s management of these Crown assets and liabilities are provided in the output performance sections of this report. These non-department balances are consolidated into the Financial Statements of the Government for the year ended 30 June 2016.
For a full understanding of the Crown’s financial position, results of operations and cash flows for the year, refer to the Financial Statements of the Government.
Basis of preparation
The financial statements have been prepared on a historical cost basis, modified by the revaluation of certain property, plant and equipment.
The non-departmental schedules and statements have been prepared in accordance with the accounting policies of the Financial Statements of the Government, Treasury 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.
Significant accounting policies
Foreign currency transactions
Foreign currency transactions are translated into New Zealand dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the schedules of non-departmental revenue and expenses.
Goods and Services Tax
All items in the financial statements, including appropriation statements, are stated exclusive of Goods and Services Tax (GST), except for receivables and payables, which are stated on
Annual Report 93 2015 - 2016
a GST-inclusive basis. In accordance with Treasury Instructions, GST is returned on revenue received on behalf of the Crown, where applicable. However, an input tax deduction is not claimed on non-departmental expenditure. Instead, the amount of GST applicable to non- departmental expenditure is recognised as a separate expense and eliminated against GST revenue on consolidation of the Financial Statements of the Government.
Commitments
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).
Contingent liabilities
Contingent liabilities are disclosed at the point at which the contingency is evident.
Critical accounting estimates
The estimates and assumptions that have a significant risk of causing a material misstatement to the carrying amounts of assets and liabilities within the next financial year are referred to below:
Budget figures
The 2016 budget figures are for the year ended 30 June 2016, which are consistent with the best estimate financial information submitted to Treasury for the BEFU (Budget and Economic Fiscal Update) for the year ended 2015/16. The Statement of Responsibility for the BEFU forecast was signed on 8 April 2016 and based on PBE standards.
Debtors
Debtors are initially recorded at fair value, and are subsequently measured at amortised cost using the effective method less any provision for impairment. A provision for impairment of debtors is established when there is evidence that the Service will not be able to collect all amounts due according to the original terms. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the schedule of non-departmental expenses. When a debtor is uncollectable, it is written off against the allowance account for debtors. Overdue debtors that are renegotiated are reclassified as current (i.e. not past due).
94 Annual Report 2015 - 2016
Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, and default in payments, are considered indicators that the debtor is likely to be impaired.
Employee entitlements
Short-term employee entitlements Employee entitlements that are due to be settled within 12 months after the end of the period in which the employee renders the related service are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date, long service leave and retirement gratuities expected to be settled within 12 months, and sick leave.
A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that it will be used by staff to cover those future absences.
Long-term employee entitlements Employee entitlements that are due to be settled beyond 12 months after the end of the reporting period in which the employee renders the related service, such as long service leave and retirement gratuities, are calculated on an actuarial basis. The calculations are based on:
likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlements information; and
the present value of the estimated future cash flows.
Property, plant and equipment
Property, plant and equipment consists of the following classes of assets: Land, buildings, furniture, plant and equipment, antiques and art, and library.
The initial cost of property, plant and equipment is the value of the consideration given to acquire or create the asset and any directly attributable costs of bringing the asset to working condition for its intended use.
All property, plant and equipment costing more than $2,000 are capitalised and recorded at historical cost with the exception of Crown furniture where re-statement of costs has been made to items of $5,000 or greater only.
Annual Report 95 2015 - 2016
Capital work in progress
Capital work in progress is not depreciated. The total cost of this work is transferred to the relevant asset category on its completion.
Depreciation
Depreciation of property, plant and equipment is provided on a straight-line basis to allocate the cost of assets, less any estimated residual value, over their useful lives.
The estimated economic useful lives and associated depreciation rates of major classes of assets are:
Furniture 15 years Antiques and collection Not depreciated Buildings 15 - 100 years Plant and equipment 3 - 10 years Land Not depreciated Library collection - reference 7 - 10 years Library collection - rare and valuable Not depreciated
Valuation
Revaluations are carried out for a number of classes of property, plant and equipment to reflect the service potential or economic benefit obtained through control of the asset. Revaluation is based on the fair value of the asset with changes reported by class of asset.
Classes of property, plant and equipment that are revalued are revalued at least every five years or whenever the carrying amount differs materially to fair value. Unrealised gains and losses arising from changes in the value of property, plant and equipment are recognised as at balance date and are debited or credited to the Revaluation Reserve.
Accumulated depreciation at revaluation date is eliminated against the gross carrying amount so that the carrying amount after revaluation equals the revalued amount.
Land and buildings are valued on a three-yearly basis by independent registered valuers to ensure that the carrying amounts do not differ materially from the assets’ fair values. Land is valued at current market value, with reference to its highest and best use, subject to its current zoning and heritage designation. Buildings are valued at depreciated replacement cost less allowance for physical deterioration, optimisation and relevant surplus capacity. The most recent valuation of land and buildings was undertaken as at 30 June 2016.
The carrying values of revalued assets are internally assessed 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 difference, then the off-cycle asset classes are revalued. Additions between revaluations are recorded at cost.
96 Annual Report 2015 - 2016
The Service accounts for revaluations of property, plant, and equipment on a class-of-asset basis.
The antique and art collections are valued at fair market value on a three-yearly basis by independent registered valuers. The last valuation was undertaken as at 30 June 2014.
The Library collections are valued at fair market value on a three yearly basis by independent registered valuers. The last valuation was completed as at 12 February 2016.
Additions
In most instances, an item of property, plant and equipment is initially recorded at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.
Disposals
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposal are included in the schedule of revenue and expenses. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to the schedule of non-Departmental liabilities and revaluation reserve.
Impairment of property, plant, and equipment
Property, plant and equipment that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use.
Value in use is the depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the Service would, if deprived of the asset, replace its remaining future economic benefits or service potential.
If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets, the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or deficit.
For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit.
The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss for that class of asset was previously
Annual Report 97 2015 - 2016
recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit.
For assets not carried at a revalued amount, the reversal of an impairment loss is recognised in the surplus or deficit.
98 Annual Report 2015 - 2016
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
2015 2016
$000 $000 Financial assets measured at amortised costs
Loans and receivables
16,696 Cash and cash equivalents 11,850
9 Debtors 14
16,705 Total loans and receivables 11,864
Financial liabilities measured at amortised costs
2,744 Creditors and other payables 3,151
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 amortisedcost. As a result, the carrying value of the instruments is at fair value.
2B – Financial instrument risks
The Service is party to financial instrument arrangements as part of its everyday operations. These include instruments such as bank balances, accounts receivable and accounts payable. The fair value of the Service’s financial instruments is the same as the carrying value.
The Service does not have any gains or losses on its financial instruments and no impairments have been recognised to date. All financial assets and liabilities are non- derivative in form and function and are neither available for sale nor held to maturity. 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.
Credit risk
Credit risk is the risk that a third party will default on its obligations to the Service, causing the Service to incur a loss. In the normal course of its business, the Service’s credit risk arises from debtors. The maximum exposure from trade debtors is the value of the non-
Annual Report 99 2015 - 2016
Government debtors, i.e. $nil (2015: $nil). Default is considered by management to be unlikely and the probable exposure has been determined as negligible. There were no changes in receivables or payables during the year that can be attributed to credit risk.
The Service is permitted to deposit funds only with Westpac, a registered bank. The Service is not required to provide any collateral or security to support financial instruments with financial institutions that it deals with, as this entity has a high credit ratings. For its other financial instruments, the Service does not have significant concentrations of credit risk.
The Service is not exposed to any other concentrations of risk.
Credit facilities
The Service does not have bank overdraft facilities as at 30 June 2016.
Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Service has no significant exposure to currency rate risk on its financial instruments.
Interest rate risk
Interest rate risk is the risk that the fair value of a financial instrument will fluctuate, or the cash flows from a financial instrument will fluctuate, due to changes in market interest rates. The Service has no interest bearing financial instruments and, accordingly, has no exposure to interest rate risk.
Liquidity risk
Liquidity risk is the risk that the Service will encounter difficulty raising funds to meet commitments as they fall due. In meeting its liquidity requirements, the Service closely monitors its forecast cash requirements with expected cash drawdowns from the NZDMO. The Service maintains a target level of available cash to meet liquidity requirements. The Service considers that it does not have a significant liquidity risk as it ensures it has adequate working capital coverage at all times.
Exposure to risk
The Service is not aware of any exposure to risk regarding financial instruments that would have a significant impact on operations.
100 Annual Report 2015 - 2016
Note 3: Debtors, Other Receivables and Prepayments
Actual Actual
2015 2016
$000 $000 Debtors under exchange transactions
9 Debtors 14
172 Prepayments 91
181 Total debtors - exchange 105
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Note 4: Property, plant and equipment
Cost or valuation Land Buildings Furniture Plant & Antiques Library Work in Total equipment and art collection Progress collection
all units $000’s
Balance at 1 July 2014 100,000 321,158 13,526 1,899 12,307 29,686 1,013 479,589
Additions - other ------5,561 5,561
Additions - Artworks & Library ----15158-173
Transfers from work in progress - 2,029 104 520 - - (2,653) -
Adjustments - 2-----2 Disposals - - (20) - - (570) - (590) Write Off/Impairment ------
Balance at 30 June 2015 100,000 323,189 13,610 2,419 12,322 29,274 3,921 484,735
Balance at 1 July 2015 100,000 323,189 13,610 2,419 12,322 29,274 3,921 484,735
Additions - other - (27) 2---8,494 8,469
Additions - Artworks & Library ----17188-205 Transfers from work in progress - 835 31 485 - - (1,351) -
Adjustments ------
Revaluation increase/(decrease) - 16,501---(22,519) - (6,018)
Disposals -----(2,198) - (2,198)
Write Off/Impairment ------Balance at 30 June 2016 100,000 340,498 13,643 2,904 12,339 4,745 11,064 485,193
Cost or valuation Land Buildings Furniture Plant & Antiques Library Work in Total equipment and art collection Progress collection
all units $000’s
Accumulated depreciation and impairment losses
Balance at 1 July 2014 - (10,902) (13,497) (82) - (15,458) - (39,939)
Depreciation expense - (10,945) (5) (186) - (656) - (11,792)
Eliminated on revaluation - 2-----2
Eliminate on disposal - - 20 - - 180 - 200
Write Off/Impairment ------
Balance at 30 June 2015 - (21,845) (13,482) (268) - (15,934) - (51,529)
Balance at 1 July 2015 - (21,845) (13,482) (268) - (15,934) - (51,529)
Depreciation expense - (11,047) (11) (249) - (608) - (11,915)
Adjustments - (2)-----(2)
Eliminate on revaluation - 32,894---14,344 - 47,238
Eliminate on disposal -----2,198 - 2,198
Write Off/Impairment ------Balance at 30 June 2016 - - (13,493) (517) - - - (14,010) Carrying amounts At 30 June 2014 100,000 310,256 29 1,817 12,307 14,228 1,013 439,650 At 30 June2015 100,000 301,344 128 2,151 12,322 13,340 3,921 433,206 At 30 June 2016 100,000 340,498 150 2,387 12,339 4,745 11,064 471,183
There were disposals of $7.291m of Library collections in 2014, $0.570m in 2015 and a further $2.198m in2016 as the result of the Library collections review which involved identifying material that was no longer useful. The review began in 2014 and was completed in 2016.
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Note 5: Creditors
Actual Actual
2015 2016
$000 $000 Creditors under exchange transactions
1,815 Creditors 1,248
929 Accrued expenses 1,903
2,744 Total creditors - exchange 3,151
Note 6: Revalued assets
Revalued assets – land and buildings
Land and buildings were valued as at 30 June 2016 by registered valuer, Darroch Limited.
The asset valuation was completed in accordance with:
Public Benefit Entity International Public SectorAccounting Standard 17: Property, Plant and Equipment (PBE IPSAS 17)
International Valuation Standards (IVS) and Property Institute of New Zealand (PINZ) standard
The land has been assessed at market value at its highest and best use, subject to its current zoning and heritage designation. In assessing the market value, land sales within the general area have been considered as a starting point. The parliamentary site comprises a large land area, and hence adjustments have been made for location and size.
The basis for the fair value assessment for the buildings is depreciated replacement cost less allowance for physical deterioration, optimisation and relevant surplus capacity, as New Zealand International Accounting Standard (NZIAS) 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.
Antique and art collections
Antique and art collections were assessed at fair value as at 30 June 2014 by Dunbar Sloane Limited.
Annual Report 103 2015 - 2016
Library
Additions to the Library collections during the year ending 30 June 2016 were recorded at cost.
During the year, a 3 year review of the Library’s collections was completed. This review identified a large amount of material that was no longer deemed useful in providing information, research, and reference services to members and Parliamentary staff. This resulted in the relevant revaluation reserves completely written down. This material is currently being offered to suitable locations including the National Library and other libraries. The collection remaining in Crown ownership was valued by an independent expert valuer, Webb’s, as at 12 February 2016. Note 7: 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 8: Related party transactions
Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the Service would have adopted in dealing with the party at arm’s length in the same circumstances. Further, transactions with other government agencies (for 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.
Note 9: Post-balance date events
There we no significant events after balance date (2015: nil).
104 Annual Report 2015 - 2016
Statements of expenses and capital expenditure Statement of non-departmental expenses against appropriations For the year ended 30 June 2016
Unaudited Main Supp
Actual Actual Estimates Estimates
2015 2016 2016 2016
$000 $000 $000 $000 Appropriation for Non-Departmental other expenses to be incurred by the Crown*
11,792 Depreciation expense on parliamentary complex 11,915 14,000 13,500
Members of the House of Representatives’ salaries and 19,884 19,640 22,000 22,000 allowances 2,873 Members’ communications 3,307 2,828 3,328
- Travel of members and others - - - Accommodation of members and travel of members’ 2,586 2,802 4,000 2,900 families 1,118 Travel of former MPs 1,055 1,000 1,300
4,165 Travel of members and others 4,485 3,750 4,550
- Party and member support - ACT - - -
423 Party and member support - Green - - -
12 Party and member support - Independent - - -
1,223 Party and member support - Labour - - -
51 Party and member support - Mana - - -
106 Party and member support - Maori - - -
1,583 Party and member support - National - - -
233 Party and member support - NZ First - - -
43 Party and member support - United Future - - -
481 Transitional costs - - -
46,573 43,204 47,578 47,578
*These appropriations are exempt from end-of-year performance information under s15D(2)(b)(ii) of the Public Finance Act 1989
Annual Report 105 2015 - 2016
Multi Year Appropriations - for other expenses to be incurred by the Crown
The Service has a multi-year appropriation (MYA) for other expenses to be incurred by the Crown for parties to support their parliamentary operations during the 51st Parliament including their Leaders’ offices, support staff, research operations, Whips office, communications, administrative and support services to members, and, during the immediate post-election period, qualifying electoral candidates and former members, as allowed under directions given by the Speaker. This appropriation commenced on 1 October 2014 and expires on 30 September 2017.
Unaudited Main Supp
Actual Actual Estimates Estimates
2015 2016 2016 2016
$000 $000 $000 $000 Multi Year Appropriation for other expenses to be incurred by the Crown*
81 Additional support for members 65 300 444
153 Party and member support - ACT 333 322 375
2,278 Party and member support - Green 3,852 3,793 4,064
7,347 Party and member support - Labour 11,966 11,553 12,071
414 Party and member support - Maori 680 675 698
10,270 Party and member support - National 16,434 16,936 17,316
1,416 Party and member support - NZ First 3,537 3,004 3,691
135 Party and member support - United Future 211 322 280
22,094 Sub-total 37,078 36,905 38,939
68,667 Total 80,282 84,483 86,517
* These appropriations have an exemption from year end performance reporting under s15D(2)9b)(ii) of the Public Finance Act 1989.
106 Annual Report 2015 - 2016
Details of multi-year appropriations - for other expenses 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 members ACT Green Labour Maori National NZ First Future 2016 $000 $000 $000 $000 $000 $000 $000 $000 Appropriations Original appropriations 900 1,349 11,655 34,984 3,300 51,097 6,563 1,025 2015/16 adjustments - - 8 - - (901) 885 - Cumulative adjustments - (365) (49) 377 (1,237) 830 2,626 (41) from previous year(s) Total adjusted appropriations as at 30 900 984 11,614 35,361 2,063 51,026 10,074 984 June 2016
Expenditure
Cumulative expenditure 81 153 2,278 7,347 414 10,270 1,416 135 from previous year(s) 2015/16 actual expenditure* 65 333 3,852 11,966 680 16,434 3,537 211 Cumulative actual expenditure as at 30 June 146 486 6,130 19,313 1,094 26,704 4,953 346 2016
Appropriations remaining 754 498 5,484 16,048 969 24,322 5,121 638 as at 30 June 2016
*Approved appropriations (Supplementary Estimates 444 375 4,064 12,071 698 17,316 3,691 280 15/16)
Annual Report 107 2015 - 2016
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 members ACT Green Labour Maori National NZ First Future 2015 $000 $000 $000 $000 $000 $000 $000 $000 Appropriations Original appropriations 900 1,349 11,655 34,984 3,300 51,097 6,563 1,025 2014/15 adjustments - (365) (49) 377 (1,237) 830 2,626 (41) Cumulative adjustments ------from previous year(s) Total adjusted appropriations as at 30 900 984 11,606 35,361 2,063 51,927 9,189 984 June 2015
Expenditure
Cumulative expenditure ------from previous year(s) 2014/15 actual expenditure 81 153 2,278 7,347 414 10,270 1,416 135 Cumulative actual expenditure as at 30 June 81 153 2,278 7,347 414 10,270 1,416 135 2015
Appropriations remaining 819 831 9,328 28,014 1,649 41,657 7,773 849 as at 30 June 2015
Note: The term of the multi year appropriation is for the term of the Parliament from 1 October 2014 to 30 September 2017. These appropriations are exempt from end-of-year performance information under s15D(2)(b)(ii) of the Public Finance Act 1989.
108 Annual Report 2015 - 2016
Details of multi-year appropriations
Purchase of 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 to carry out essential maintenance and minor capital improvements. This appropriation commenced on 1 July 2012 and expired on 30 June 2016.
Unaudited Main Supp
Actual Actual Estimates Estimates
2015 2016 2016 2016
$000 $000 $000 $000 Purchase or development of capital assets by the Crown*
Crown Asset Management -
Parliamentary complex - minor capital works
16,000 Original appropriation 16,000 16,000 16,000
8,567 Cumulative adjustments from previous years 8,567 8,567 8,567
- Adjusted appropriation approved 2015/16 (435) - (435)
24,567 Total adjusted appropriation 24,132 24,567 24,132
8,258 Cumulative actual expenditure at beginning of year 13,820 14,946 14,339
5,562 This year’s actual expenditure 8,469 9,621 9,793
13,820 Cumulative actual expenditure as at 30 June 2016 22,289 24,567 24,132
10,747 Appropriation remaining as at 30 June 2016 1,843 - -
* This appropriation has an exemption from year end performance reporting under s15D(2)(b)(ii) of the Public Finance Act 1989.
Annual Report 109 2015 - 2016
Statement of non-departmental expenses and capital expenditure incurred without appropriation or other authority or in excess of an existing appropriation or other authority For the year ended 30 June 2016
There was no non-departmental unappropriated expenditure and capital expenditure in 2015/16 (2014/15: $117,623).
110 Annual Report 2015 - 2016
Schedule of expenditure on travel entitlements of former members and their spouse or partner
Section 42 of the Members of Parliament (Remuneration and Services) Act 2013 requires the Crown to report on expenses for travel entitlements of former members and their spouse or partner. The details required by this section are shown in the table below. This information includes travel which commenced prior to 30 June 2016 for which reimbursement requests were received by 19 August 2016. Claims received after this date will be disclosed in the 2016/17 Annual Report.
Total expenses Total expenses Total expenses incurred for rail, incurred for incurred for road and ferry international air travel domestic air travel travel Total Name of former member $ $ $ $ Hon James Anderton - 1,426 - 1,426 Philip Ardern 3,177 - - 3,177 Hon Margaret Austin 3,848 347 94 4,288 Hon John Banks - 2,704 - 2,704 Hon Richard Barker 1,839 4,487 193 6,519 Timothy Barnett 538 878 106 1,522 Hon Dr Michael Bassett 9,402 1,142 - 10,544 Rt Hon Sir William Birch - 1,645 - 1,645 Rt Hon James Bolger 10,454 - - 10,454 Hon Maxwell Bradford 6,197 1,490 452 8,139 Hon Phillida Bunkle 3,890 946 - 4,836 Hon Philip Burdon 1,402 4,996 - 6,398 Hon Sir Thomas Burke 10,454 3,370 2,323 16,147 Hon Richard Burton 4,028 473 - 4,501 Hon Christopher Carter 8,711 402 - 9,113 Hon John Carter 1,229 3,011 91 4,331 Hon David Caygill - 545 - 545 Hon Warren Cooper 8,304 461 - 8,765 Rt Hon Wyatt Creech 9,544 - - 9,544 Hon Dr Sir Michael Cullen 6,990 - - 6,990 Hon Sir Roger Douglas 2,550 609 - 3,159 Hon Harry Duynhoven 7,044 1,865 - 8,909 Rt Hon Paul East 7,104 277 - 7,381 Jeanette Fitzsimons - 972 - 972
Annual Report 111 2015 - 2016
Total expenses Total expenses Total expenses incurred for rail, incurred for incurred for road and ferry international air travel domestic air travel travel Total Name of former member $ $ $ $ Hon Anthony Friedlander 1,389 1,053 191 2,633 Richard Gerard 758 324 - 1,082 Hon Peter Gresham 519 309 - 828 Hon Marie Hasler - 448 - 448 Hon George Hawkins 4,229 - - 4,229 Hon Dame Margaret (Ann) 6,557 1,445 - 8,002 Hercus Hon Peter Hodgson - 5,902 - 5,902 Dail Jones 1,961 - - 1,961 Graham Kelly 6,574 1,937 - 8,511 Hon Sir Douglas Kidd 5,774 1,407 - 7,180 Garry Knapp 1,025 - - 1,025 Warren Kyd 1,139 1,021 - 2,159 Hon Graeme Lee 8,469 800 - 9,269 Hon Sandra Lee-Vercoe - 703 - 703 Hon Murray Luxton 10,454 3,041 - 13,495 Brian MacDonell 3,236 - - 3,236 Hon Peter McCardle 321 - - 321 Rt Hon Sir Donald - 568 - 568 McKinnon Hon Sir James McLay 4,978 1,206 - 6,184 Ian McLean - 878 - 878 Hon Maurice McTigue 4,748 - - 4,748 Hon Anthony G Malcolm 1,228 - - 1,228 Hon Cedric Marshall - 1,030 - 1,030 Hon Denis Marshall - 2,703 - 2,703 Hon Dr Clive Matthewson 1,018 788 - 1,806 Hon Roger Maxwell 10,352 1,732 - 12,083 Alan Meurant 5,425 244 - 5,668 Brian Neeson 3,068 2,205 - 5,273 Dr Muriel Newman - 379 - 379 Richard Northey 2,682 107 - 2,789 Hon Katherine O’Regan - 435 - 435 Mark Peck - 2,962 - 2,962 Marjorie Pettis 5,166 229 - 5,395 Hon Richard Prebble 994 663 - 1,657 Hon Derek Quigley 5,281 - - 5,281 Marilyn Quigley 6,969 1,327 - 8,296 Ian Revell 1,896 93 - 1,989 Harold Robertson 2,417 1,091 - 3,508
112 Annual Report 2015 - 2016
Total expenses Total expenses Total expenses incurred for rail, incurred for incurred for road and ferry international air travel domestic air travel travel Total Name of former member $ $ $ $ Hon Matthew Robson 6,969 288 - 7,257 Hon Stanley Rodger 817 1,073 - 1,890 Hon Anthony Ryall - 1,502 - 1,502 Hon Dover Samuels 997 - - 997 Hon Dr Ian Shearer - 736 - 736 Rt Hon Dame Jennifer 10,454 - - 10,454 Shipley Hon Kenneth Shirley - 542 154 696 Rt Hon Dr Sir Alexander 10,448 436 - 10,884 (Lockwood) Smith Hon Robert Storey 7,991 - - 7,991 Hon James Sutton - 674 - 674 Patricia Tennet 571 669 - 1,240 John Terris 1,759 671 - 2,430 Rt Hon Robert Tizard - 491 - 491 (deceased 2016) Hon Judith Tizard - 3,485 - 3,485 Dr Marilyn Waring 424 - - 424 Hon Koro Wetere 7,838 - - 7,838 Hon Frances Wilde 4,650 - - 4,650 Hon Pansy Wong - 132 - 132 2014/15 travel reimbursed during 2015/16 Hon Maxwell Bradford - - 86 86 Hon Derek Quigley 1,549 - - 1,549 Subtotal of former 269,793 79,774 3,690 353,257 members
Total expenses Total expenses Total expenses Name of spouse/ incurred for incurred for incurred for partner/surviving international air domestic air rail, road and spouse of former Name of former travel travel ferry travel Total member member $ $ $ $ Doreen Anderson Robert Anderson 403 - - 403 Carole Anderton Hon James Anderton - 2,566 - 2,566 Catherine Ardern Philip Ardern 3,177 - - 3,177 Lady Sandra Arthur Sir Basil Arthur 2,842 - - 2,842 Barbara Bailey Hon Ronald Bailey 10,454 308 - 10,762 Amanda Banks Hon John Banks 3,153 1,852 - 5,005 Hon Dr Michael Judith Bassett 9,402 591 - 9,993 Bassett
Annual Report 113 2015 - 2016
Total expenses Total expenses Total expenses Name of spouse/ incurred for incurred for incurred for partner/surviving international air domestic air rail, road and spouse of former Name of former travel travel ferry travel Total member member $ $ $ $ Hon Dr Clive Gail Birt 1,018 788 - 1,806 Mathewson Joan Bolger Rt Hon James Bolger 10,454 - - 10,454 Rosemary Bradford Hon Maxwell Bradford 6,197 1,102 165 7,464 Lynley Brown Peter Brown 1,190 - - 1,190 Rosalind Burdon Hon Philip Burdon 9,999 2,273 - 12,272 Lady Fahimeh Rastar Hon Sir Thomas Burke 7,954 311 - 8,265 Burke Carol Burton Hon Richard Burton 4,824 401 - 5,225 Leoni Carter Hon John Carter 1,328 3,374 91 4,793 Hon Dr Sir Michael Lowson Collins 6,990 - - 6,990 Cullen Noeline Colman Rt Hon Fraser Colman 7,911 4,080 120 12,111 Diane Comber Ken Comber - 261 - 261 Lorraine Cooper Hon Warren Cooper 8,304 461 - 8,765 Hon Katherine Michael Cox - 435 - 435 O’Regan Diana Creech Rt Hon Wyatt Creech 8,428 347 - 8,775 Linda Donnelly Brian Donnelly 1,444 - - 1,444 Lady Glennis Hon Sir Roger Douglas 6,866 365 - 7,231 Douglas Margaret Hon Harry Duynhoven 1,089 1,597 - 2,686 Duynhoven Marilyn East Rt Hon Paul East 6,620 554 - 7,174 Hon Jonathan Judith Elworthy 541 917 - 1,458 Elworthy Harry Parke Jeanette Fitzsimons - 230 - 230 Hon Anthony Pamela Friedlander 1,389 389 191 1,969 Friedlander John Galvin Patricia Tennet 571 459 - 1,030 Mary Gerard Richard Gerard 758 177 - 935 Margot Gresham Hon Peter Gresham 519 309 - 828 Janice Hawkins Hon George Hawkins 4,229 - - 4,229 Katherine Hawley John Terris 1,759 188 - 1,947 Hon Dame Margaret John Hercus 6,557 1,235 - 7,792 (Ann) Hercus John Hunt Marilyn Quigley 3,936 1,648 - 5,584 Elaine Jones Dail Jones 1,961 929 - 2,890 Hon Christopher Peter Kaiser 8,711 372 - 9,083 Carter Janette Kelly Graham Kelly - 1,929 - 1,929 Lady Jane Kidd Hon Sir Douglas Kidd 9,899 3,960 - 13,859
114 Annual Report 2015 - 2016
Total expenses Total expenses Total expenses Name of spouse/ incurred for incurred for incurred for partner/surviving international air domestic air rail, road and spouse of former Name of former travel travel ferry travel Total member member $ $ $ $ Dianne Kyd Warren Kyd 1,139 1,021 - 2,160 Daphne Lee Hon Graeme Lee 8,469 800 - 9,269 John Lepper Hon Phillida Bunkle - 377 - 377 Joan MacDonell Brian MacDonell 3,236 - - 3,236 Elizabeth McAffer Hon Derek Quigley 733 - -733 Anna McCardle Hon Peter McCardle 321 - - 321 Nan McKenzie Hon Noel Scott - 737 - 737 Lady Marcy McLay Hon Sir James McLay 4,034 1,216 - 5,250 Barbara McTigue Hon Maurice McTigue 3,315 - - 3,315 Ramon Maniapoto Timothy Barnett 683 - - 683 Anne Marris Hon Peter Hodgson 3,313 5,729 - 9,042 Barbara Marshall Hon Cedric Marshall - 808 - 808 Tui Maxwell Hon Roger Maxwell 10,352 950 52 11,354 Vanessa Neeson Brian Neeson 3,211 2,656 - 5,867 Robyn Northey Richard Northey 2,682 107 - 2,789 Margaret Peck Mark Peck - 1,336 - 1,336 Warren Pettis Marjorie Pettis 5,166 229 - 5,395 Gabriele Pfaender Dr Bruce Gregory - 182 146 328 Nellie Rata Matiu Rata - 582 - 582 Susan Goldfinch Ian Revell 2,141 162 - 2,303 Revell Grace Robertson Harold Robertson 1,250 1,195 - 2,445 Petronella Hon Matthew Robson 4,790 - - 4,790 Townshend Anne Rodger Hon Stanley Rodger 817 1,091 - 1,908 Kara Ryall Hon Anthony Ryall - 2,060 - 2,060 Mary Scholtens Hon Murray Luxton 10,454 1,177 - 11,631 Rt Hon Dame Jennifer Burton Shipley 10,454 - - 10,454 Shipley Nicola Shirlaw Rodney Donald 1,931 242 - 2,173 Patrick Shields Margaret Shields 6,969 - - 6,969 Jenny Shirley Hon Kenneth Shirley 923 1,475 104 2,502 Lady Alexandra Rt Hon Sir Alexander 10,454 - - 10,454 Smith (Lockwood) Smith Lorraine Storey Hon Robert Storey 7,991 - - 7,991 Hon Tini (Whetu) Dr Denis Sullivan 599 - - 599 Tirikatene Sullivan Ngahuia Wade Hon Richard Prebble 6,631 771 - 7,402 Susannah Walker Hon Herbert Walker 693 349 - 1,042
Annual Report 115 2015 - 2016
Total expenses Total expenses Total expenses Name of spouse/ incurred for incurred for incurred for partner/surviving international air domestic air rail, road and spouse of former Name of former travel travel ferry travel Total member member $ $ $ $ Helen Wellington Meryyn Wellington - 430 - 430 Nedracita Wetere Hon Koro Wetere 7,838 - - 7,838 Carol Woollaston Philip Woollaston - 76 - 76 Sammy Wong Hon Pansy Wong - 462 - 462 2014/15 travel reimbursed during 2015/16 Diane Comber Ken Comber - 640 - 640 Rt Hon Sir Donald Lady Clare Delore - 936 - 936 McKinnon Elizabeth McAffer Hon Derek Quigley 3,853 - - 3,853 Rt Hon Dr Sir Lady Alexandra Alexander (Lockwood) 1,211 - - 1,211 Smith Smith Subtotal of spouse/ 286,528 62,202 870 349,600 partner of former members
Summary of totals
Subtotal of former members 269,793 79,774 3,690 353,257 Subtotal of spouse/partner of former 286,528 62,202 870 349,600 members Fringe benefit taxes 352,637 Total 1,055,494
Roadmap to Vision 2020 From...
OUR MISSION
2014/15 2015/16 2016/17
Year one Year of the Year of the
The focus is on building people member our people capability We develop our people We work consistently and establishing a joint and support members across the Service to sector outcome with with clear and consistent effectively meet the The Office of the Clerk. business processes. needs of members.
THE DESIRED OUTCOMES
...silos, broken Staff are valued The Service As an organisation and passionate provides the tools the Service communication, about providing to work securely understands its multiple hand-offs great service from wherever and customers’ needs. to support whenever people Parliament. need to – anytime, anywhere.
and secure. safemodern, is flexibleand The workplace The Speaker’s Directions general election smoothly transitioned between Parliaments.between are clearandeasy Year ofthe to implement. Members areMembers 2017/18 quality services. quality it to provide high customers trust The Service’s We deliver consistently high quality services services high quality environment Our workplace is Our workplace Year ofthe fit-for-purpose. to members. 2018/19 Parliament. outcomes for deliver on continue to the Service and the Clerk of The Office into thefuture enduring look We take an 2019/20 We are amodernorganisation is recognised for excellence that values tradition and Vision 2020 ...cross functional roles,...cross functional and innovation Realising the high collaboration, 2020/21 results oriented
To...