A. 13 1
Annual Report 2016 - 2017 Parliamentary Service 2 Annual Report 2016 - 2017
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)
Copyright
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Contents
5 Foreword: Speaker of the House of Representatives
6 Delivering a better service
9 About Us
13 Highlights from 2016/17
15 Our achievements this year
19 Supporting our people to support members
25 Measuring our performance
32 Statement of responsibility
33 Independent Auditor’s Report
37 Financial Statements for the year ended 30 June 2017
4 Annual Report 2016 - 2017 5
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.
It has been another fulfilling and productive year for the Significant work continues Service, as it continues to enhance its ability to better to create a Parliament that support members of Parliament and make Parliament itself is safe and accessible to all. more accessible to visitors. It remains guided by its long-term From creating a new entrance vision of being recognised for excellence and innovation in to Parliament to outlawing everything it does. smoking on the parliamentary grounds, changes are The Service has focused on members of Parliament being happening to make engaging able to navigate through its services efficiently and effectively. with Parliament more Members need to have the right level of support and services appealing and accessible. available to enable them to carry out their duties as effectively as possible as elected representatives in our system of I continue to appreciate the support that the Service has representative democracy. provided my office over the last year.
Underpinning this is a smarter service delivery model and a set of consistent business processes that are delivering results. I have seen the Service work hard to deliver a working environment to support members of Parliament (and their staff) with dedicated and targeted resources. The Service is continuing to engage with and listen closely to the needs of members. The Rt Hon David Carter, MP Speaker of the House of Representatives 28 September 2017 6 Annual Report 2016 - 2017
Delivering a better service
I am delighted to present the 2016/17 annual report of the Parliamentary Service. This has been another outstanding year for the Service and we can all be proud with the progress we have made.
A compelling member experience Our intention is to ensure that Members of Parliament and supporting the House of the right level of technical Representatives are at the heart of what we do – members advice and support is available formed the essential theme for the year just gone: ‘The Year to meet our commitment of of the Member’. This saw us working consistently across providing anytime, anywhere the Service to effectively meet the needs of members. access, both now and in the future.. Members expect to be We continue to listen to what members asked for and to able to work remotely at a time respond better to their needs, this year we introduced a of their choosing and need to new service delivery model. Dedicated case managers have confidence that a solid are on hand to facilitate their requests, particularly those IT platform is in place to give that require a cross-functional response across business them the service they require. units. We have support staff managers who provide the managerial guidance and support to the staff focused on The last year has also seen a visible and concentrated providing vital backing to members across the country. effort to support the new Health and Safety at Work legislation. A new management framework has been We’ve responded to the recommendations from the sixth implemented across the Service. With members, we jointly Appropriations Review Committee, feeding these into the share responsibility for health and safety in their offices development of new Speaker’s Directions (the operating and significant work has been completed to ensure these framework for members) in time for the 52nd Parliament. offices comply with the new legislative requirements. A key thrust of the recommendations was on creating a stable and sustainable funding platform for our elected Looking forward, work has started in earnest on a representatives. This will give them certainty going forward Parliamentary Accommodation Strategy that will deliver a and allow all members to plan effectively. new built environment for Parliament for the next 100 years. The initial concept was approved by the Government and Another important element has been ensuring that work on detailed design is well underway. members are provided with the right levels of support, and that their support staff are trained and fairly remunerated. Smart Service Delivery This has led to a greater choice in support staff roles to An essential component of smart service delivery has been enable members to employ staff suited to their way of the introduction of a dedicated business process model. working. Members work long, varied hours, either here at Launched last August, we developed and are embedding Parliament or in their constituency, or on policy issues in key processes to consistently support the essential parts their community. This requires a mobile way of working of our business. Our key concern has been to embed and we endeavour to support them with a range of mobile consistency and offer transparency through the use of a devices and anytime, anywhere access to the information dedicated customer relationship management system they need. (known as Kete). This enables staff to check the progress 7
of business flows within processes and follow up any the support that the Speaker has extended to me outstanding matters in a timely fashion. This will help to personally as well as my team, and the drive, energy and drive a compelling experience for members. support of my Executive Leadership Team as we continue our transformational journey. Smarter service delivery has also been reflected in a refresh of our learning and development framework for corporate Finally, I would also like to thank the Clerk of the House, and member support staff. Where staff have the right level David Wilson, and his staff for working in a collaborative of professional development and training, this gives them partnership as all of us work to establish better outcomes the skills and tools to do their jobs more effectively. for New Zealand’s Parliament.
Community and Accessibility Our second strategic objective is to support an accessible Parliament. I am pleased to report that the Service has had a number of successes in this area in 2016/17. At Parliament we introduced free Wi-Fi for public visitors. In spite of the effects from the Kaikoura earthquake in November 2016, we have had nearly 81,000 people visit Parliament on a tour or education visit. Visiting Parliament also featured David Stevenson in the 2017 Lonely Planet New Zealand edition which is a General Manager wonderful endorsement for the experience provided. This 28 September 2017 experience is set to be enhanced with the opening of a new entrance to Parliament (expected September 2017) and improved visitor centre.
We have also maintained our Gold status with Be.Accessible and recently approved an accessibility policy for Parliament for the Service and the Office of the Clerk of the House of Representatives (Office of the Clerk). Our staff also give back to the community. In Wellington, our staff support a homework club for a local school, freely giving up their time to support the younger generation and reflect the positive ethos of the Service.
My thanks go to all staff at the Service for their continuing commitment and energy and for making the Parliamentary Service a great place to work. I would like to acknowledge 8 Annual Report 2016 - 2017 9
About Us
The Service is a group of over 730 people who are 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 exceptional service delivery and innovation. 10 Annual Report 2016 - 2017
Our structure
The Service has six business groups: • Finance • Information Systems and Technology (IST) • Organisational Strategy and Performance • Parliamentary Library • Parliamentary People and Culture • Precinct Services.
Our responsibilities and services
We are responsible for providing administrative and support services to members of Parliament and the House of Representatives. 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 • making and passing legislation • scrutinising the activities of government and holding it to account • developing policy • assisting constituents • debating public issues • as representatives in a parliamentary democracy.
We provide the tools, staff, and working environment that members need to work as effectively as possible in Parliament itself and at their out-of-Parliament offices.
Services to members
Member support staff Travel services Out-of-Parliament office administration, management Funding advice services & security Information and communications services Research and information services Financial and accounting services Health, safety, & wellbeing services Payroll and HR services 11
Services on the parliamentary precinct
We provide a range of services to other agencies and users of the parliamentary precinct.
Precinct services • Facilities and building management, including building projects, management of heritage buildings, and contract management • Information and communication services • Security and emergency response coordination • Catering • Reception services • Visitor services including education services, tours, and shop • Messenger and mail services
In addition, we deliver services to specific agencies:
Group and Service Agencies and groups Description
Department of Prime Minister Provision of the computing backbone Computing and Cabinet network (including physical infrastructure, backbone Ministerial Support firewalls, mail gateway and support), network network Office of the Clerk and telephony platform Information Parliamentary Counsel Office Strategic advice systems and Internal Joint service desk, common desktop, technology Ministerial Support networks and managed services, user training, application Office of the Clerk software systems hosting, development and maintenance Hosting of the IST infrastructure, including but Server hosting Central Agency Shared Services not limited to servers
Tailored information and research services Parliamentary Library -Information All staff and agencies on the Limited services are available to members of and research services parliamentary precinct the public.
Accounts processing, financial reporting and budgeting, Treasury interfaces , compliance Office of the Clerk Finance services with accounting regulations and audit Parliamentary Counsel Office Finance services Strategic advice Ministerial Support International and domestic travel Travel Former members arrangements
Office of the Clerk Parliamentary Parliamentary Counsel Office People and Payroll services Full payroll services For Ministers on behalf of Culture Ministerial Support 12 Annual Report 2016 - 2017
Our risk management approach
We are supported by an independent Risk and Assurance Committee – formed in 2016/17 - that provides guidance to the General Manager on the fundamental governance activities underpinning the Service. During the last year, the Executive Leadership Team (ELT) and the Risk and Assurance Committee refreshed the key strategic risks facing the organisation. These are outlined below.
Key strategic risks • Safety (on the precinct and in out-of-Parliament offices) • Information security and management • Clarity of role and purpose • People • Customer service • Continued functioning of Parliament • Change
Mitigation strategies are in place for these identified risks, and a process to monitor the effectiveness of these strategies. Updates are reported quarterly to the ELT and the Risk and Assurance Committee. 13
Highlights from 2016/17 The Year of the Member
These highlights outline how we have listened to and supported members, and they also demonstrate the depth and variety of our operating environment.
New Service Delivery model with Member Support Staff Managers and Members’ Case Nearly 81,000 Managers Security bollards visitors on a tour or installed on the education visit precinct
Security upgrades Launched across 95% of learning and Business out-of-Parliament development process flows offices introduced Designed a calendar Health and Safety strategy Financial Revised Speaker’s Intranet refresh dashboard reporting Directions for 2017 project introduced IT network refresh
Maintained 48 art Gold status from themed tours Be.Accessible Increased satisfaction Embedding our with our services from performance members of Parliament management system Developed Library strategy 2017-2021 Voice of the Customer sessions Library responded with members of to over 10,000 Parliament research requests 14 Annual Report 2016 - 2017 15
Our achievements this year
The political environment that we support is dynamic. It relies on the advice and support of the Service to ensure that members have the tools they need to represent their constituents and the country as a whole. This is how we performed against the objectives in our Strategic Intentions 2016-2020.
Outcome: The House of Representatives and members receive high quality services
We strive to provide a range of services to members The consistent use of business processes has formed a core and parties, to assist them to fulfil their role as elected component of the planning for the general election and the representatives and legislators, as set out in the Speaker’s transition to the 52nd Parliament. Testing, amending and Directions and within Appropriations. We have two goals to documenting processes are in place to facilitate a smooth achieve this outcome. transition between Parliaments. Planning for the election and new Parliament started in earnest during the second half of the Goal #1: members and other parliamentary agencies are year and covers all aspects of the Service. We need to ensure able to work flexibly and effectively wherever they are: that appropriate resourcing, processes and procedures are in place to manage the increased volume in payroll, recruitment What did we do? and reporting. We are also developing specific induction and a) Leveraging new technology to enable flexible and on-boarding resources. efficient working conditions Over the last year we have been working to migrate the Our Members’ Case Managers have portfolios based on the New Zealand Parliament website onto the Azure Public political parties and are on hand to answer and facilitate Cloud environment which will deliver better performance any request for assistance or information that comes in and resilience. Other major initiatives delivered include: from members. They are the single point of call for requests the roll out of Skype for Business – which is gradually – especially for requests that require input from across the replacing the legacy Mitel analogue platform; the upgrade Service – and are accountable for the end-to-end delivery to Windows 10 – which delivers a far more secure, touch of information to ensure that requests are answered to screen-enabled, operating environment; and the migration members’ satisfaction. to the new Blackberry Work platform, which delivers secure access to emails, shared calendars and documents to all our The Member Support Staff Managers within our new service supported mobile phone devices. The ICT training team has delivery model are responsible for the entire employee supported the roll out of these new technologies. lifecycle. This includes induction, on-boarding, learning and development, setting expectations, undertaking The IST group has been reviewing the contracts for our performance reviews and maintaining regular contact with current IT service provider and telephony services which member support staff across the country throughout the will deliver improved services and business outcomes to performance year. members and their staff. This is a more proactive approach to managing and supporting b) Continuous business improvement our member support and out-of-Parliament staff. Developing A significant achievement this year was the launch a deeper understanding of the environment in which these of Business Process Management. Business processes staff work has allowed us to better tailor our services to meet introduced include staff on-boarding, staff exit, member their needs. A number of work programmes have been on-board and member exit, as well as opening and closing developed or are in development which specifically target members’ out-of-Parliament offices. these staff and recognise more individual needs. 16 Annual Report 2016 - 2017
Already we are seeing the benefits of more regular contact Goal #2: members and other parliamentary agencies and this approach with our member support staff workforce receive high quality services who are feeling more connected and engaged with the Service. Anecdotal evidence from members and support What did we do? staff indicates enthusiasm for the model, and we will formally The Service has continued to provide a very high level of review it in 2017/18. service delivery on several fronts. We ensured that financial information was available over 80% of the time to members c) ARC recommendations reviewed and actioned. and other parliamentary agencies within four working Speaker’s Directions are reviewed and updated in a timely days of month end. All members and their staff have used manner the Parliamentary Library at least once in the last year and The report of the Sixth Triennial Appropriations Review we achieved our target of 95% in relation to dealing with Committee (ARC) was presented to Parliament in November requests for employment agreements for members’ support 2015. The ARC is convened each parliamentary term to staff within three working days of receipt. The Speaker consider the funding of the Parliamentary Service and also continues to rate the services to his office very highly members. The recommendations were considered by a – marking the Service 5 out of 5, an identical result to the working party of members—supported by the Service. Over previous four years. the course of this year new Speaker’s Directions have been drafted, consulted on, and approved in time for the 52nd Towards the end of the year we introduced a refreshed Parliament. intranet – known as ‘Our House’ - giving a fresher look and feel, and improved navigation for staff and members. Several recommendations formed the basis of successful Information has been brought up to date and there are budget initiatives in Budget 2017. These included funding better search functions. The intranet is our primary place for to cover increased security in out-of-Parliament offices information.about the Service for members and staff. and complying with new health and safety requirements; changes in funding and number of support staff roles, and To better support members, the Parliamentary Library increased funding for mobile technology. An additional organised eight sessions called ‘Voice of the Customer’ three roles have been added to create a suite of ten support where members from across the political spectrum spoke staff roles. These new roles with position descriptions reflect about their experience of the Service, both good and bad. the differing needs and expectations of members ahead of There were over 400 attendees across the sessions. the new Parliament. Our Library staff have responded to over 10,000 requests, How did we do? produced 100 debate packs, and written over 80 briefing During 2016/17 ICT services continued to be delivered papers. This is testament to the value of the service they to a high standard. Customers received network access provide. Information security is vitally important, and a 99.3% of the time and all ICT incidents in members’ out-of- formal privacy strategy and revised governance model Parliament offices were responded to within set timeframes for the Service was developed during the year. As part of (six business hours). the governance model the Principal Privacy Officer role was created. In our Strategic Intentions, we intended to measure customer satisfaction via a survey of our member support staff. The Parliamentary Library also developed a four-year However, this survey was discontinued and we replaced this strategic plan aligned with the vision and outcomes of the measure with the Net Promoter System to use directly with Service. The strategic plan reinforces the role of the Library members of Parliament but we are only able to report this at which is to serve New Zealand’s Parliament by delivering the organisational level. To supplement this, we conducted trusted information, research and analysis. We know that the a survey of whips, chiefs of staff and office managers as a information world, technology demands and our customers’ proxy for members, who ranked their satisfaction with ICT information needs continue to develop and become services as 3.2 out of 5 (64%). increasingly complex. This means the services and resources 17
we offer must change to meet these needs. The Library’s There continues to be high usage and demand for our strategic journey 2017-2021 sets out how we can position education resources. We also support a virtual tour of ourselves to do this. Parliament on the NZ Parliament website – allowing visitors to tour Parliament if they are not able to get here in person How did we do? – and in 2016/17 there were over 1,600 ‘plays’ of this tour by The satisfaction of members with our services during the online visitors. parliamentary transition will be measured following the general election and reported formally in our annual report We hosted 535 educational groups in 2016/17, down from for 2017/18. We carried out a survey with the Office of the 552 groups in 2015/16. However, 69 schools cancelled a visit Clerk and the Parliamentary Counsel Office in relation to the because of the effects of the Kaikoura earthquake so the provision of finance services. The Office of the Clerk rated potential number of group visits would have exceeded 600. us 8.4 out of 10 and the Parliamentary Counsel Office rated us 10 out of 10 for the overall financial service received in In May 2017 we produced a video to play to educational 2016/17. We also meet with whips, chiefs of staff, and other groups when they visit Parliament. The feedback on the agencies on a monthly basis to gauge how our service video was so positive that we made it available on the delivery is performing and address any issues. NZ Parliament website in August 2017 as a resource for classrooms around the country. The results of the survey conducted with whips, chiefs of staff and office managers as a proxy for members The Fijian Parliament’s education unit also adopted content (mentioned above) indicated an overall level of satisfaction from our education resources and repackaged it for use by with our services of 3.93 out of 5, or 79%. This is an increase Fijian students. This is a great endorsement for the quality compared to 2013/14 when the same survey was run. of resources that we produce and it is satisfying to be able Finance and HR services were rated 4 and 4.14 out of 5 to assist other Parliaments. respectively (80% and 83%); the Library was rated 4.69 out of 5 (94%) and Travel was rated 4.77 out of 5 (95%). All b) Engaging the public through events and activities that results were an improvement on 2013/14. interest, inform and involve the public We continue to provide high quality tours and education programmes. 98% of respondents undertaking a Outcome: An accessible Parliament parliamentary tour rated the experience as good or excellent; this is a near identical result to last year (97%). New Zealand’s Parliament is a fundamental cornerstone of New Zealand’s representative democracy. We pride ourselves Forty-eight art tours showcasing Parliament’s collection were on ensuring all New Zealanders are able to participate in, and also run for the general public and for special interest groups, have access to our Parliament. We do this by encouraging with 731 participants (up from 505 in 2015/16). Thirteen large students and the general public to visit, either in person or art exhibitions have also been hosted, up from 12 the previous online, to learn about our democracy, our history, and the year. Tours combined with high tea in Bellamy’s dining room process of developing and passing legislation. The Office of continue to be well received and have now become a regular the Clerk and the Service work together as the parliament feature on the annual events programme. sector to identify and deliver initiatives which will further enhance public knowledge and respect for Parliament. We c) Improvements in informational content about have two goals to achieve this outcome. Parliament and improved public access to it The Parliament website continues to be well used and Goal #1: the public can learn about and engage with the regarded. As mentioned above, the use of the virtual tour parliamentary process. is high and we had over 600 visits to the interactive timeline that shows the history of Parliament. We have also worked What did we do? with the Office of the Clerk to develop an additional page for a) Resources that better educate students and the public students under the ‘Visit and Learn’ section of the website; about Parliament this is designed to encourage greater use by young people. The Parliamentary Library also responded to over 1,300 public enquiries via its Parliamentary Information Service. 18 Annual Report 2016 - 2017
d) Engage with new and hard-to-reach audiences, using b) Buildings and grounds on the parliamentary precinct a variety of channels, including social media are fit-for-purpose The use of social media to engage with new and hard-to- Security on the parliamentary precinct has improved with reach audiences is something the Office of the Clerk has the installation of retractable bollards on all driveways increasingly adopted. However, the Service supports the and increased security within the parliamentary car parks. Office of the Clerk by providing content for social media, New ‘aviation quality’ scanning equipment was procured e.g. Twitter. Usage is trending upwards. and installed – another step to keep everyone safe on the parliamentary precinct. Excellent progress has been made How did we do? with bringing out-of-Parliament offices up to minimum Our target is increased public uptake and use of security standards – 96% or 130 offices out of a total of parliamentary education resources. User satisfaction 135 are now compliant. One of the policies in the new shows those resources are fit for purpose. There were over Speaker’s Directions will also ensure that all new offices will 2,700 new visitors to the education resources webpage be made compliant before opening. (compared to over 1,900 in 2015/16), and over 260 education resource packs were sent out to teachers. It is Training and education relating to security is being great that packs are still being sent as many schools have provided. New threat and risk assessment and management already received copies. And 95% of users strongly agreed processes have been implemented. And our Protective or agreed that education resources met their needs and Security section is running security awareness training and those of their students. education programmes across the precinct and all out-of- Parliament offices. Goal #2: the parliamentary precinct is accessible, safe, used, and maintained effectively. The Service has continued to maintain its Gold standard from Be.Accessible (a social change initiative dedicated What did we do? to creating a truly accessible country) for the degree a) Effective and efficient management of parliamentary of accessibility around the precinct. It has also recently assets approved an Accessibility Policy for Parliament (in Our Capital Asset Management Plan was created to assess conjunction with the Office of the Clerk) providing some the expected end-of-life date for all building assets. This key principles to ensure that Parliament is accessible to plan forms the basis for the multi-year, forward-looking New Zealanders – accessible in terms of providing both capital finance plan. Effective use of this plan should information and physical entry. ensure there are no significant unplanned plant failures and parliamentary assets remain available to support the How did we do? buildings and business of Parliament. Our target is that project and maintenance deliverables in the Capital Asset Management Plan are completed During the year, all of the Ministerial suites and floors to agreed standards; and that targets related to the occupied by the Department of Prime Minister and Cabinet management of the precincts are met. in the Executive Wing (Beehive) were re-carpeted as part of a 12 year rolling cycle of end-of-life replacement. The audio The deliverables for 2016/17 in the Capital Asset Management and transmitting system for the Chamber was replaced, Plan were met. and it now has a fully duplicated fall-over configuration which should ensure 99.99% reliable audio in the Chamber. 19
Supporting our people to support members
Earthquakes and other natural disasters across the country this year have ensured our people have had to show great resilience, and at times they have responded to a number of challenges outside those anticipated for the final year of the 51st Parliament.
Our people have also been asked to look at mapping their in 2016/17 to develop our leaders and support our business processes to ensure consistent service delivery. workforces with professional development and performance management, as well as our ongoing health, safety and Continuous improvement requires us to be prepared to wellbeing journey with staff. change and grow in order to improve the way we do things. We need to ensure that our people feel supported Developing leadership, management and workforce throughout this process and have the tools and resources capabilities and engaging our people required to be able to undertake their roles effectively now and during the 52nd Parliament. Building leadership capability continued to be a strong focus this year with many of the work programmes focusing on We continue to operate in a complex yet unique environment improving foundation frameworks and processes to support requiring a broad range of skills and expertise. We have two workforce capability. Creating positive and supportive distinct workforces: working environments right from the beginning of our • Member support staff who work directly with working relationship through to ongoing performance members both on the precinct, regionally and within reviews and feedback will contribute to a Service wide the party political offices workforce capable of delivering the strategic outcomes that • Corporate support staff who provide a range support the member. of services to members, agencies on the wider parliamentary precinct and the public. The following outlines a number of work programmes that were undertaken throughout the year which aim to support, In the Year of the Member it has been important to recognise develop and engage our people. that supporting and developing our people remains critical to ensuring the organisation can effectively meet the Leadership development framework needs of the members. However the way we do this has Work has started on building a leadership framework so we required us to think differently and across the organisation. can develop the potential of our leaders within the corporate Better understanding of all our people across both these support staff workforce. This includes emerging leaders. The workforces is the key to being able to provide better services framework will provide tools, programmes, and resources and support. to encourage key leadership behaviours and management fundamentals to further enhance the Service. A working Developing our leaders, performance management, creating group will inform the design of the framework. a capable workforce and engaging our people across both workforces allows us to deliver high quality services and Learning and development calendars resources to our customers: the members and the House of Learning and development calendars for all staff have been Representatives. developed and piloted this year. The calendars list workshops that support staff in their day-to-day work, and build their The following section outlines a variety of work undertaken capability by providing key skills and behaviours to perform 20 Annual Report 2016 - 2017
roles across the organisation. The pilot was overwhelmingly Health, safety and wellbeing successful and we will implement a calendar for the next Last year created a number of opportunities for the Service performance year. to respond to the health and safety needs of our people. Our emergency response was tested in November with the Performance management framework for member Kaikōura earthquake and its impact across the Service. In the support staff wake of this event, Grab and Go Bags were purchased and We reviewed the performance framework for member distributed to all staff nationwide. support staff this year. The review looked at how we induct member support staff, set expectations, undertake cyclical The Service has recognised the importance of embedding performance reviews, and how we keep in touch with Health and Safety into the culture of the organisation. member support staff both in and out of Parliament. We designed a Health and Safety strategy last year that underpins a work programme to deliver this objective We have developed a new framework for member support staff in the 52nd Parliament called ‘Engaging With You’. The We re-assessed the Service’s risk-profile based on a new risk framework will ensure a solid relationship is built between assessment methodology, as well as providing training to the Member Support Staff Manager and staff members key staff on security-related risks. In addition, ACC and KPMG from the outset. The Member Support Staff Manager will set audits were conducted and key outcomes factored into our expectations, undertake performance reviews, and maintain ongoing health and safety work programmes. regular contact with the staff member throughout the performance year. Last year we refreshed and implemented our health and safety management framework. It set the expectations the Network meetings Service had of its management and staff as well as explaining Regional network meetings were convened by Regional the methodology for assessing and managing health and Network Convenors for member support staff in each region safety risk. throughout the year. Our new focus is embedding health and safety into the In addition, network meetings facilitated by the Service’s culture of the Service to create a strong and vibrant culture for corporate support staff were held in the main centres our people. This means we need to consider their wellbeing for member support staff. These meetings focused on which includes a holistic approach to health, safety and preparing staff for the 2017 general election, and provided wellbeing. Work will continue on developing this concept an opportunity for staff to discuss what is working well, what into tangible outcomes. We have invested in a new structure can be improved, and how the Service can support them. and additional resource with the creation of a targeted business unit led by a new Health, Safety and Wellbeing Induction and orientation Manager. We have branded our programme Manaakitanga It is important that our people understand how their roles which reflects the principle of caring for others in a generous contribute to the institution of Parliament and that they feel and respectful way. supported to navigate the unique work environment they have entered. Our induction and orientation programmes Our aim with Manaakitanga is to create a culture in which for both corporate support staff and member support staff a commitment to health, safety and wellbeing is part of our have been expanded this year. A more robust on-boarding everyday business. This journey will continue into 2018 and programme has been developed which ensures that all staff beyond. across the organisation are exposed to a consistent and positive experience from the outset. Collective bargaining Negotiations for a new Collective Employment Agreement Resources and tools have been developed to support this (CEA2) covering member support and party political office including: induction and recruitment videos, a welcome staff were completed this year between Parliamentary box with information on getting started at the Service , a Service, PSA and E tu. The settlement reached was re-designed orientation day and a welcome book which subsequently ratified in July 2017. focuses on the wellbeing of all staff here at the Service. 21
Future focus
Looking ahead, we are committed to implementing the following programmes of work over the next two years:
developing a diversity strategy developing organisational values to support our conducting an vision and strategic organisation-wide direction culture/engagement survey
developing an employee value proposition, ensuring we can attract key Health, safety talent & wellbeing with a focus on training leaders and staff and building Manaakitanga into our workplace culture
designing a leadership development framework developing a flexible working strategy
The next section provides statistics on our workforce and our journey towards building diversity and inclusion in the Service. 22 Annual Report 2016 - 2017
Our workforce
700
600
500
400
300
200
100
0 2016 2017
Member Support Staff 378.7 376.5 Core Staff 271 267
Total FTE 649.7 643.5
As at 30 June 2017, the Service employs 733 staff, equivalent Diversity and inclusion to 643.5 full time equivalent staff (FTEs). This contrasts with The development of a diversity strategy is a goal within 748 staff, equivalent to 649.7 FTEs, as at 30 June 2016. 63% the Service’s Strategic Roadmap. The journey towards of staff are employed to support members of Parliament or diversity and inclusion begins by recognising that our future the party political offices (member support staff), while 37% workforce will need to better reflect the New Zealanders provide corporate support services and advice on behalf of that the Service ultimately serves. the General Manager of the Parliamentary Service. Building inclusive leadership capability will improve our We have seen an increase in unplanned turnover diversity profile and lead to a better overall understanding (annualised) of corporate support staff from 7.2% in 2016 to of the ways we can support all our people. Development is 9.4% in 2017.1 This still compares favourably with the public underway to include unconscious bias training as part of our sector average of 11.9%. Leadership Fundamentals programme.
1 Unplanned turnover includes resignations, retirements, dismissals and deaths and excludes all Fixed Term employees. 23
Age Jun-17 Public Service June 2018 30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0% 15-19 20-29 30-39 40-49 50-59 60-69 70-79 80+
Our current workforce spans a wide range of ages. Currently we are under-represented in the 40-49 age group with 18.9% of people falling into this category compared with the 2016 public service figure of 26%. We are over-represented in the 60-69 age group with 18% of our workforce in this category compared with 12% in the 2016 public service figure.
Flexibility
Full-time Part-time
Member Support & Political Office 52% 48%
Jun-17 Corporate 85% 15%
Member Support & Political Office 51% 49%
Jun-16 78% 22% Corporate
Member Support part-time: Female vs Male Corporate Support part-time: Female vs Male Female Male Female Male
28% 50% 50% 72% 24 Annual Report 2016 - 2017
Gender
70.00% Female 60.00% Male 50.00%
40.00%
30.00%
20.00%
10.00%
0.00% Jun-2017 Public Service June 2016
Gender pay gap is 12.8% (June 2017), up 5.1% from last year (June 2016) but in line with the public service at 13.5%. Women in senior leadership positions is 39% (June 2017), down from 41% last year.
Ethnicity All Parliamentary Service
Public Q4 14/15 movement Q4 15/16 movement Q4 16/17 Service Maori 18.99% -3.1% 15.8% -5.1% 10.7% 16.1%
Pacific 3.3% 1.9% 5.3% 0.2% 5.5% 8.1%
-2.3% Asian 6.7% 4.4% 1.1% 5.5% 8.9%
Note: Singaporean Chinese 3.33% Not all staff record their ethnicity. Malaysian Chinese 3.33% We have revised our method for calculating ethnicity figures Korean 3.33% in line with that of the State Services Commission. Indian 30.00% Our workforce is represented Filipino 20.00% by 44 different ethnicities. Chinese 16.67% Our representation for people identifying as Māori, Pacific and Cambodian 3.33% Asian is lower than that of the overall public service. Not Defined 20.00%
0% 5% 10% 15% 20% 25% 30% 35% 25
Measuring our performance
Our appropriations We achieved the majority of agreed performance standards this year against our appropriations. Each appropriation is detailed below together with an assessment of performance (both financial and non-financial).
Support Services to the Speaker The intention of this appropriation is to 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 2015-16 Result 2016-17 Result
The Speaker is satisfied with Customer satisfaction of at least 4 Achieved Achieved the provision of resources and on a scale of 1 to 5 in the annual Score of 5 overall Score of 5 overall services to his office. Speaker’s satisfaction survey. satisfaction. satisfaction.
Unaudited
Actual 2017 Budget 20172 Revised Budget 20173 Financial performance Figures are $000s and GST exclusive Total expenditure 205 225 225
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.
2 Budget 2017 figures are those numbers reported in the Estimates of Appropriation. 3 Revised Budget 2017 figures are adjustments to the Budget 2017 figures as reported in the 2017 Supplementary Estimates of Appropriation. 26 Annual Report 2016 - 2017
Measure Performance standard 2015-16 Result 2016-17 Result
Members of Parliament are satisfied with Achieved Positive NPS score Changed measure the overall quality of services 574
Supplementary measure: Achieved Whips, chiefs of staff and office managers 3.50/5 (result from Not measured 3.93/5 as a proxy for members are satisfied with 2013/14) the overall quality of services.5
Building and Operations Management The intention of this appropriation is to achieve building maintenance and operational services.
Measure Performance standard 2015-16 Result 2016-17 Result
The public has access to 75,000 – 80,000 people Achieved Achieved the parliamentary precinct via parliamentary tours and 84,502 people visited 80,925 people visited education visits. Parliament Parliament6
Visitors undertaking a 90% of visitors rate their Achieved - 97% of visitors Achieved – 98% of visitors parliamentary tour rate the parliamentary experience as rated their experience as rated their experience as parliamentary experience as good or excellent. good or excellent. good or excellent. good or excellent.
The proceedings of the House Proceedings are not Changed measure Achieved – no interruptions of Representatives are not interrupted occurred to disrupt interrupted due to incidences proceedings occurring in the public gallery
4 The Net Promoter System (NPS) score is calculated on the basis of the number of promoters an organisation has minus a number of detractors. The maximum score is either 100 or -100 depending on the proportion of promoters versus detractors. The positive score of 57 indicates that the Service has more promoters than detractors among those members who answered the survey. However, only 14 completed responses were received and used in the calculation of the NPS score and this may not be representative of the actual service levels. This led to the Service using the supplementary measure surveying whips, etc; see footnote 5 for further information. 5 Due to the low number of responses to the NPS, the Service undertook a satisfaction survey among whips, chiefs of staff and office managers as a proxy for members to supplement the NPS measure. 14 responses were received (out of a possible 15) and the average score was calculated (out of 5) for the overall quality of services and for individual service lines (Parliamentary Library, ICT, Travel, Finance and HR). Respondents were asked to rank services on a scale of 1 to 5, 1 being very dissatisfied and 5 being very satisfied. A similar survey was undertaken in 2013/14 and that year’s results have been used as the performance standard. As discussed on page 17, the Service will also survey members’ satisfaction with the parliamentary transition (to be reported in 2017/18) and it undertakes surveys with other parliamentary agencies on the provision of financial services. These help to show how satisfied customers are with our services. 6 Visitor numbers were significantly affected in November and December 2016 by the aftermath of the Kaikoura earthquake. And due to the renovations taking place with the new combined entrance to Executive Wing and Parliament House, tour sizes and the number of tours have been reduced. 27
Measure Performance standard 2015-16 Result 2016-17 Result
The condition of our heritage Planned CAMP deliverables Achieved Achieved buildings is maintained are completed. to reflect their national significance and these are Maintain ‘Be Accessible silver Changed measure Achieved – accessible to the disabled standard, or better. Be.Accessible community. Gold standard
The parliamentary precinct and 70% of targets in the PSR Changed measure Not Achieved - out-of Parliament (OOP) offices Capability Maturity Model 50% of targets were met.8 are safe and secure are met.7
90% of members’ OOP Not achieved - Achieved – 96% of offices offices meet the minimum 57% of offices which meet the minimum required required security standards. have been assessed standard.9 have the required improvements implemented.
95% of security incidents Not achieved - Substantially met – All on the precinct are resolved All incidents were resolved incidents resolved successfully with detailed successfully but 49% of successfully and 91% of accurate post-incident post-incident reports were post-incident reports were reporting submitted within not completed within 12 completed within 12 hours. 12 hours of any incident. hours.
95% of security incidents in New measure Achieved - All incidents members’ OOP offices are resolved successfully and resolved successfully with 96% of post-incident reports detailed accurate post- were completed within 24 incident reporting submitted hours. within 24 hours (working days) of any incident
Unaudited
Actual 2017 Budget 2017 Revised Budget 2017 Financial performance Figures are $000s and GST exclusive Total expenditure 27,578 27,608 27,793
7 PSR is Protective Security Requirements. 8 This result is in line with the trend in all-of-government and actually demonstrates an increased maturity within our security operation as we gain a greater appreciation of the volume of work required to meet this target. 9 Work is planned and funded in 2017/18 to bring the remaining 4% of offices up to the minimum required security standard. 28 Annual Report 2016 - 2017
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 2015-16 Result 2016-17 Result
Customers receive quality Customers receive quality network Achieved Substantially met network access to email access to email services, file and 99.8% 99.3% services, file and print services, print services, internet and intranet internet and intranet access via access via desktop or mobile desktop or mobile devices in devices in the precinct 99.8% of the the precinct. time during business hours.10
On-site incidents for members’ At least 90% of on-site incidents Achieved Achieved out-of-Parliament offices are for members’ out-of-Parliament responded to in a timely way.11 Offices with Priority 1 service status 95% 100% are responded to on-site within six business hours.
Members are satisfied with the Positive NPS score Changed measure Not applicable12 quality of ICT services.
Supplementary measure: 3.35/5 (result from 2013/14) Not measured Not achieved whips, chiefs of staff and 3.21/5 office managers as a proxy for members are satisfied with the quality of ICT services.
Unaudited
Actual 2017 Budget 2017 Revised Budget 2017 Financial performance Figures are $000s and GST exclusive Total expenditure 16,474 16,572 16,420
10 Business hours are defined as 7.30am to 11pm while the House of Representatives is sitting and 7.30am to 6pm on non-sitting days. 11 The Estimates of Appropriation 2016/17 refers to members’ offices; these are members’ out-of-Parliament offices. 12 See footnote 4. 29
Parliamentary Library The intention of this appropriation is to achieve the supply of library services.
Measure Performance standard 2015-16 Result 2016-17 Result
Members are satisfied with the Positive NPS score Changed measure Not applicable13 quality of Library services.
Supplementary measure: whips, chiefs of staff and Achieved office managers as a proxy for 4.25/5 (result from 2013/14) Not measured 4.69/5 members are satisfied with the quality of Library services.
Members and their staff use of Percentage of members or their staff Achieved Achieved Library services per year: usage of Library services per year: • once or more • 97% once or more 100% 100% • five times or more • 80% five times or more 98% 98% • ten times or more • 60% ten times or more 94% 94%
Unaudited
Actual 2017 Budget 2017 Revised Budget 2017 Financial performance Figures are $000s and GST exclusive Total expenditure 5,110 4,440 5,223
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 2015-16 Result 2016-17 Result
Provide timely reporting, Financial information is available Achieved Achieved budgeting and forecasting within four working days of month 75% 83% services. end for 75% of the financial year
Members are satisfied with the quality of financial, people & Positive NPS score Changed measure Not applicable14 culture and travel services.
13 See footnote 4. 14 See footnote 4. 30 Annual Report 2016 - 2017
Measure Performance standard 2015-16 Result 2016-17 Result
Supplementary measure: Results from 2013/14: Not measured Achieved whips, chiefs of staff and office managers as a proxy for • Finance – 3.55/5 • Finance - 4.00/5 members are satisfied with the • HR (Parliamentary People and • HR - 4.14/5 quality of financial, people & Culture) – 3.65/5 culture and travel services. • Travel – 4.65/5 • Travel - 4.77/5
Requests for employment 95% of requested employment Changed measure Achieved - agreements for members’ agreements for members’ staff are 95% completed within 3 staff are dealt with in a timely provided within 3 working days of working days of receipt. manner. receipt.
Provision of accurate and The six payroll organisations are Achieved Achieved timely payroll services to six processed with a 99.5% to 100% 99.9% 99.9% organisations15 accuracy rate.
Unaudited
Actual 2017 Budget 2017 Revised Budget 2017 Financial performance Figures are $000s and GST exclusive Total expenditure 8,945 8,617 9,220
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 2017 Budget 2017 Revised Budget 2017 $000 $000 $000 Property, Plant and Expenditure 1,765 465 1,069 Intangibles 2,914 3,885 4,165 Total departmental capital expenditure 4,679 4,350 5,234
15 The six payroll organisations are Parliamentary Service, Parliamentary Service (Crown), Members of Parliament, Ministers, Office of the Clerk of the House of Representatives and Parliamentary Counsel Office. 31
Appropriation statements
Unappropriated expenditure Parliamentary Service did not have any unappropriated expenditure or unappropriated capital expenditure in 2017 (2016: nil).
Capital injections Parliamentary Service did not receive any capital cash injections during the year without, or in excess of authority in 2017 (2016: nil).
Parliamentary Service received a $4.394 million non-cash capital injection as a result of a transfer of library assets from the Crown.
Statement of departmental expenses and capital expenditure against appropriations for the year ended 30 June 2017
Unaudited Revised Actual Actual Budget Budget 2016 2017 2017 2017 $000 $000 $000 $000 Departmental output expenses* 350 Support services to the Speaker 205 225 225 350 Total departmental output expenses 205 225 225
Multi Category Appropriations* Parliamentary information, communications & 15,403 16,474 16,572 16,420 technology services 28,099 Building & operations management 27,578 27,608 27,793 4,750 Parliamentary library 5,110 4,440 5,223 Personal, accounting and advisory services to 7,798 8,945 8,617 9,220 members and other parliamentary agencies 56,050 Total multi category appropriations 58,107 57,237 58,656
56,400 Total appropriations for output expenses 58,312 57,462 58,881
Parliamentary Service - capital expenditure 3,692 Permanent Legislative Authority 4,679 4,350 5,234
*Performance reporting on these outputs is contained in this Annual Report. 32 Annual Report 2016 - 2017
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 2017 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 2018 and its operations for the year ending on that date.
David Stevenson General Manager
28 September 2017 33
Independent Auditor’s Report To the readers of Parliamentary Service’s annual report for the year ended 30 June 2017
The Auditor-General is the auditor of Parliamentary Service Opinion (the Service). The Auditor-General has appointed me, John In our opinion: Whittal, using the staff and resources of Audit New Zealand, • the financial statements of the Service on pages 41 to 63: to carry out, on his behalf, the audit of: - present fairly, in all material respects: • the financial statements of the Service on pages • its financial position as at 30 June 2017; and 41 to 63, that comprise the statement of financial • its financial performance and cash flows for position, statement of commitments, statement of the year ended on that date; and contingent liabilities and contingent assets as at 30 - comply with generally accepted accounting June 2017, the statement of comprehensive revenue practice in New Zealand in accordance with and expense, statement of changes in taxpayers’ Public Benefit Entity Reporting Standards. funds, and statement of cash flows for the year • the performance information of the Service on pages ended on that date and the notes to the financial 15 to 18 and 25 to 30: statements that include accounting policies and - presents fairly, in all material respects, for the year other explanatory information; ended 30 June 2017: • the performance information prepared by the • what has been achieved with the Service for the year ended 30 June 2017 on pages 15 appropriation; and to 18 and 25 to 30; • the actual expenses or capital expenditure • the statements of expenses and capital expenditure incurred compared with the appropriated or of the Service for the year ended 30 June 2017 on forecast expenses or capital expenditure; and page 31; - complies with generally accepted accounting • the schedule on expenditure on travel entitlements practice in New Zealand. of former members and their spouse or partner on • the statements of expenses and capital expenditure pages 82 to 86; and of the Service on page 31 is presented fairly, in all • the schedules of non-departmental activities which material respects, in accordance with the requirements are managed by the Service on behalf of the Crown of section 45A of the Public Finance Act 1989. on pages 66 to 81 that comprise: • the schedule of expenditure on travel entitlements of - the schedules of assets; liabilities and revaluation former members and their spouse or partner on pages reserves; commitments; and contingent 82 to 86 is presented fairly, in all material respects; liabilities and assets as at 30 June 2017; in accordance with section 42 of the Members of - the schedules of expenses and revenue for the Parliament (Remuneration and Services) Act 2013. year ended 30 June 2017; and • the schedules of non-departmental activities which - the notes to the schedules that include are managed by the Service on behalf of the Crown on accounting policies and other explanatory pages 66 to 81 present fairly, in all material respects, in information. accordance with the Treasury Instructions: - the assets; liabilities; commitments; and contingent liabilities and assets as at 30 June 2017; and - expenses; and revenue for the year ended 30 June 2017. 34 Annual Report 2016 - 2017
Our audit was completed on 28 September 2017. This is the The General Manager is responsible for such internal control date at which our opinion is expressed. as is determined is necessary to enable the preparation of the information to be audited that is free from material The basis for our opinion is explained below. In addition, we misstatement, whether due to fraud or error. outline the responsibilities of the General Manager and our responsibilities relating to the information to be audited, In preparing the information to be audited, the General we comment on other information, and we explain our Manager is responsible on behalf of the Service for assessing independence. the Service’s ability to continue as a going concern. The General Manager is also responsible for disclosing, as Basis for our opinion applicable, matters related to going concern and using We carried out our audit in accordance with the Auditor- the going concern basis of accounting, unless there is General’s Auditing Standards, which incorporate the an intention to merge or to terminate the activities of the Professional and Ethical Standards and the International Service, or there is no realistic alternative but to do so. Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our The General Manager’s responsibilities arise from the Public responsibilities under those standards are further described Finance Act 1989. in the Responsibilities of the auditor section of our report. Responsibilities of the auditor for the information to be We have fulfilled our responsibilities in accordance with the audited Auditor-General’s Auditing Standards. Our objectives are to obtain reasonable assurance about whether the information we audited, as a whole, is free from We believe that the audit evidence we have obtained is material misstatement, whether due to fraud or error, and to sufficient and appropriate to provide a basis for our audit issue an auditor’s report that includes our opinion. opinion. Reasonable assurance is a high level of assurance, but is not Responsibilities of the General Manager for the a guarantee that an audit carried out in accordance with information to be audited the Auditor-General’s Auditing Standards will always detect The General Manager is responsible on behalf of the Service a material misstatement when it exists. Misstatements are for preparing: differences or omissions of amounts or disclosures, and • financial statements that present fairly the Service’s can arise from fraud or error. Misstatements are considered financial position, financial performance, and its material if, individually or in the aggregate, they could cash flows, and that comply with generally accepted reasonably be expected to influence the decisions of readers, accounting practice in New Zealand. taken on the basis of the information we audited. • performance information that presents fairly what has been achieved with each appropriation, the For the budget information reported in the information we expenditure incurred as compared with expenditure audited, our procedures were limited to checking that the expected to be incurred, and that complies with information agreed to the information on Strategic Intentions generally accepted accounting practice in New 2016-2020 and relevant Estimates and Supplementary Zealand. Estimates of Appropriations 2016/17, and the 2016/17 • statements of expenses and capital expenditure of forecast financial figures included in the Service’s 2015/16 the Service, that are presented fairly, in accordance Annual Report. with the requirements of the Public Finance Act 1989. • schedules of non departmental activities, in We did not evaluate the security and controls over the accordance with the Treasury Instructions, that electronic publication of the information we audited. present fairly those activities managed by the Service on behalf of the Crown. As part of an audit in accordance with the Auditor-General’s 35
Auditing Standards, we exercise professional judgement and among other matters, the planned scope and timing maintain professional scepticism throughout the audit. Also: of the audit and significant audit findings, including any • We identify and assess the risks of material significant deficiencies in internal control that we identify misstatement of the information we audited, during our audit. whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain Our responsibilities arise from the Public Audit Act 2001. audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not Other information detecting a material misstatement resulting from The General Manager is responsible for the other information. fraud is higher than for one resulting from error, as The other information comprises the information included fraud may involve collusion, forgery, intentional on pages 1 to 14, 19 to 24, 32, 36 to 40 and 64 to 65, but does omissions, misrepresentations, or the override of not include the information we audited, and our auditor’s internal control. report thereon. • We obtain an understanding of internal control relevant to the audit in order to design audit Our opinion on the information we audited does not cover procedures that are appropriate in the circumstances, the other information and we do not express any form of but not for the purpose of expressing an opinion on audit opinion or assurance conclusion thereon. the effectiveness of the Service’s internal control. • We evaluate the appropriateness of accounting Our responsibility is to read the other information. In doing policies used and the reasonableness of accounting so, we consider whether the other information is materially estimates and related disclosures made by the inconsistent with the information we audited or our General Manager. knowledge obtained in the audit, or otherwise appears to be • We evaluate the appropriateness of the reported materially misstated. If, based on our work, we conclude that performance information within the Service’s there is a material misstatement of this other information, framework for reporting its performance. we are required to report that fact. We have nothing to • We conclude on the appropriateness of the use report in this regard. of the going concern basis of accounting by the General Manager and, based on the audit evidence Independence obtained, whether a material uncertainty exists We are independent of the Service in accordance with related to events or conditions that may cast the independence requirements of the Auditor-General’s significant doubt on the Service’s ability to continue Auditing Standards, which incorporate the independence as a going concern. If we conclude that a material requirements of Professional and Ethical Standard 1 (Revised): uncertainty exists, we are required to draw attention Code of Ethics for Assurance Practitioners issued by the New in our auditor’s report to the related disclosures in Zealand Auditing and Assurance Standards Board. the information we audited or, if such disclosures are inadequate, to modify our opinion. Our conclusions Other than in our capacity as auditor, we have no relationship are based on the audit evidence obtained up to the with, or interests in, the Service. date of our auditor’s report. However, future events or conditions may cause the Service to cease to continue as a going concern. • We evaluate the overall presentation, structure and content of the information we audited, including the disclosures, and whether the information we audited John Whittal represents the underlying transactions and events in Audit New Zealand a manner that achieves fair presentation. On behalf of the Auditor-General We communicate with the General Manager regarding, Wellington, New Zealand 36 Annual Report 2016 - 2017 37
Parliamentary Service Annual Report Financial Statements 30 June 2017
Key to the financial statements
Additional information
Judgements and estimates
Notes to the statements
Overview
Policies and procedures
Risks 38 Annual Report 2016 - 2017
Financial Overview
Parliamentary Service’s operational review
The Service’s revenue of $59.8 million was in line with the outsourcing ICT support. A major focus has been the review revised budget of $59.7 million however this year’s revenue and re-negotiation of this contract. included an amount of $0.8 million relating to a rent overpayment adjustment as a result of arbitration between The Service spent $8.9 million on human resources the Service and the landlord of Bowen House. This amount support, finance, member services and advisory will be repaid to Treasury as part of the $1.5 million (2016: services. Particular emphasis was focussed on preparation $0.7 million) return of surplus. for the 2017 general election where multiple transitioning of members, out of Parliament offices and support staff will Expenditure was $58.3 million compared to a revised budget take place. Another key focus was the development of a set of $58.9 million resulting in a $0.6 million dollar underspend of seamless cross-function business process flows. These which was primarily as a result of delays in operational processes enable services, involving several areas of the project spend. Service, to be managed as a series of tasks using workflows contained in our customer relationship management (CRM) On a functional level, providing building and operational system (known as “Kete”) which is to ensure both timely and management of the parliamentary precinct remains the fit-for-purpose outcomes for the member. largest cost driver within the Service. $27.6 million was spent on providing these support services. A significant The Service continues to focus on its learning and portion of the support costs was for security services within development offerings for its staff – that is for the corporate and surrounding the precinct, operating on a 24/7 basis. The support staff and both on and off precinct member precinct based security team also monitor and assist with support staff. Our Parliamentary People and Culture team safety and security matters for all “out-of-Parliament” offices. have offered a number of development courses for staff to develop a variety of skills, all of which are designed to Information, communication and technology (ICT) enhance the capability of the Service’s staff to perform their services cost the Service $16.5 million. The majority of this roles in assisting our members. cost was from providing ICT services to members and support staff. This includes providing hardware, network Parliamentary Library costs totalled $5.1 million. This is infrastructure, mobile computing, software services, and the cost of providing research and information services to security and helpdesk functions. Major cost within the ICT members and their support staff. area is the contract for services from Datacom who provides 39
Budget 2017 – Submitting budget initiatives
2017 saw the Service put in a series of three year budget Our submissions also included funding requests for the initiatives to fund the Service and to adjust the appropriations Parliamentary Accommodation Strategy – initial funding supporting Parliament for the 52nd Parliament. to develop the preferred accommodation strategy for members, the Office of the Clerk and the Parliamentary The Service was successful with seven Budget 2017 Service for the next 100 years. submissions. These submissions covered both departmental and non-department appropriations that the Service We also submitted a funding request for Parliamentary administers. The seven initiatives included the 6th Service capability & capacity - adjusting the Parliamentary Appropriations Review Committee (ARC) recommendations. Service baseline for the next three years to address a The ARC met with members of Parliament at the start of number of cost pressures including additional cyber security the 51st Parliament and consulted on funding pressures capability, increased learning & development costs and members face. From this, a series of recommendations were market remuneration. made. These recommendations go through a member led committee and other analysis before being submitted to As we do every election year we also requested a new Treasury as part of the budget initiative process. appropriation for the Parliamentary Transition. This one off appropriation recognises the additional costs to the Service The recommendations that that were submitted and were involved in the transition from the 51st to 52nd Parliaments. successful included:
• Mobile ICT kit for member support staff to enable flexible working • Increased funding for ergonomic furniture and increased security for out of parliament member offices • Allowing each member to employ a senior support staff member • Increased cover for staff on leave • Adjusting two electorates to “Large” electorates allowing for additional staff to help cover the larger area • Adjusting party leadership funding after a long period of static funding 40 Annual Report 2016 - 2017
Looking ahead – forecast financial statements 2017
The 2017 budget figures are for the year ended The budget and forecast figures are unaudited and have 30 June 2017 and were published in the 2016 been prepared using the accounting policies adopted in annual report as forecast numbers. They are consistent with preparing these financial statements. the Service’s best estimate financial forecast information submitted to Treasury for the Budget Economic and Fiscal The 30 June 2018 forecast figures have been prepared Update (BEFU) for the year ending 2017. in accordance with PBE FRS 42 Prospective Financial Statements and comply with PBE FRS 42. The 2018 forecast figures are for the year ending 30 June 2018, which are consistent with the best estimate financial The General Manager is responsible for the forecast forecast information submitted to Treasury for the BEFU for financial statements, including the appropriateness of the year ending 2018. the assumptions underlying them and all other required disclosures. The forecast financial statements have been prepared as required by the Public Finance Act 1989 to communicate forecast financial information for accountability purposes.
Significant assumptions used in preparing the forecast financials
The forecast financial figures contained in these financial • Funding to cover costs incurred by the Service in statements reflect the Service’s purpose and activities and preparing for and transitioning members of Parliament are based on a number of assumptions on what may occur from the 51st to the 52nd Parliament. during the 2017/18 year. The forecast figures have been • Operating costs are based on historical experience. compiled on the basis of existing government policies The general historical pattern is expected to continue. and ministerial expectations at the time the Estimates of • Estimated year-end information for 2017 is used as Appropriation were finalised. the opening position for the 2018 forecasts.
The main assumptions adopted for the forecast were as Factors that could lead to material differences between the follows: forecast financial statements and the 2018 actual financial • The Service’s activities will remain substantially the statements include technical adjustments. The actual same as for the previous year, although additional financial results achieved for 30 June 2018 are likely to vary funding has been catered for capability to allow the from the forecast information presented and the variations Parliamentary Service to continue to provide the may be material. administrative and support services to members of Parliament. The Statement of Representation for the BEFU forecast was signed 6 April 2017 and was based on the PBE standards. 41
Statement of comprehensive revenue and expense for the year ended 30 June 2017
Unaudited Revised Actual Actual Budget1 Budget2 Forecast3 2016 2017 2017 2017 2018 $000 Notes $000 $000 $000 $000 Revenue 50,553 Crown 51,988 51,147 51,988 54,315 5,868 Departmental 2 6,174 5,716 6,052 5,906 682 Other revenue 2 1,609 599 1,639 599
57,103 Total revenue 59,771 57,462 59,679 60,820
Expenses 21,499 Personnel 3 22,527 22,643 22,691 26,957 5,283 Depreciation and amortisation 8 & 9 4,835 5,339 4,959 4,903 2,092 Capital charge 4 1,832 2,092 1,832 1,833 27,526 Other expenses 5 29,118 27,388 29,399 27,127
56,400 Total expenses 58,312 57,462 58,881 60,820
703 Surplus 1,459 - 798 -
703 Total comprehensive revenue and expense 1,459 - 798 -
1 Budget 2017 figures are those numbers reported in the 2016 Estimates of Appropriation. 2 Revised Budget 2017 figures are adjustments to the Budget 2017 figures as reported in the 2017 Supplementary Estimates of Appropriation. 3 Forecast 2018 figures are the Budget 2018 numbers as reported in the 2017 Estimates of Appropriation.
Explanations of major variances against the Budget are provided in Note 19. The notes to the accounts form part of and are to be read in conjunction with these financial statements 42 Annual Report 2016 - 2017
Statement of financial position
as at 30 June 2017
Unaudited Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 Notes $000 $000 $000 $000 Assets Current assets 3,528 Cash and cash equivalents 5,563 5,247 6,071 4,295 11,854 Debtors and other receivables 6 10,246 10,830 9,930 11,130 741 Prepayments 1,407 850 750 750 79 Inventory 7 26 45 45 45
16,202 Total current assets 17,242 16,972 16,796 16,220
Non-current assets 9,244 Property, plant & equipment 8 12,902 5,823 12,176 12,106 7,276 Intangible assets 9 7,852 10,001 9,019 9,297
16,520 Total non-current assets 20,754 15,824 21,195 21,403
32,722 Total assets 37,996 32,796 37,991 37,623
Liabilities Current liabilities 3,836 Creditors and other payables 10 3,828 4,000 3,765 3,765 703 Return of operating surplus 13 1,459 - 798 - 1,420 Employee entitlements 11 1,483 2,220 2,285 2,695 5,959 Total current liabilities 6,770 6,220 6,848 6,460
Non current liabilities 607 Employee entitlements 11 676 420 587 607 6,566 Total liabilities 7,446 6,640 7,435 7,067
26,156 Net assets 30,550 26,156 30,556 30,556
Taxpayers' funds 26,156 Taxpayer funds 14 30,550 26,156 30,556 30,556 26,156 Total taxpayers' funds 30,550 26,156 30,556 30,556
Cash and cash equivalents include all cash held in the bank accounts. All cash held in bank accounts is held in on demand accounts and no interest is payable to Parliamentary Service. The Service is only permitted to expend its cash and cash equivalents within the scope and limits of its appropriations.
Explanations of major variances against the Budget are provided in Note 19. The notes to the accounts form part of and are to be read in conjunction with these financial statements 43
Statement of changes in taxpayers’ funds for the year ended 30 June 2017
Unaudited Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 Notes $000 $000 $000 $000 26,156 Balance as at 1 July 2016 26,156 26,156 30,556 30,556 703 Total comprehensive revenue & expense 1,459 - 798 -
Owner transactions - Capital injection - non cash 4,394 - - - (703) Return of operating surplus to Crown 13 (1,459) - (798) - 26,156 Balance as at 30 June 2017 30,550 26,156 30,556 30,556
Taxpayers’ funds is the Crown’s investment in the Service and is measured as the difference between total assets and total liabilities.
Explanations of major variances against the Budget are provided in Note 19. The notes to the accounts form part of and are to be read in conjunction with these financial statements 44 Annual Report 2016 - 2017
Statement of cash flows
for the year ended 30 June 2017
Unaudited Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 Notes $000 $000 $000 $000 Cash flows from operating activities 48,592 Receipts from Revenue Crown 53,508 50,147 53,508 53,115 6,491 Receipts from other revenue 7,924 6,365 8,129 6,505 (26,821) Payments to suppliers (29,184) (27,465) (29,471) (27,125) (21,405) Payments to employees (22,827) (22,136) (21,849) (26,529) (2,092) Payments for capital charge (1,832) (2,092) (1,832) (1,833) (21) Goods and services tax (net) (172) - (5) -
4,744 Net cash flow from operating activities 7,417 4,819 8,480 4,133
Cash flows from investing activities Receipts from sale of property, plant and 4 - - - - equipment and intangibles (1,354) Purchase of property, plant and equipment (1,765) (465) (1,069) (1,756) (2,338) Purchase of intangible assets (2,914) (3,885) (4,165) (3,355)
(3,688) Net cash flow from investing activities (4,679) (4,350) (5,234) (5,111)
Cash flows from financing activities: (1,060) Return of operating surplus (703) - (703) (798)
(1,060) Net cash flow from financing activities (703) - (703) (798) (8) Net increase/(decrease) in cash held 2,035 469 2,543 (1,776) 3,536 Cash at the beginning of the year 3,528 4,778 3,528 6,071
3,528 Cash at the end of the year 5,563 5,247 6,071 4,295
Explanations of major variances against the Budget are provided in Note 19. The notes to the accounts form part of and are to be read in conjunction with these financial statements 45
Statement of cash flows (continued) as at 30 June 2017
Reconciliation of net surplus/(deficit) to net cash flow from operating activities
Unaudited Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 Notes $000 $000 $000 $000
703 Net surplus 1,459 - 798 - Add/(less) non-cash items 5,283 Depreciation and amortisation 4,835 5,339 4,959 4,903 Inc/(Dec) in non-current employee 140 69 - - - entitlements (27) Inc/(Dec) in GST payable (172) - (5) - 5,396 Total non-cash items 4,732 5,339 4,954 4,903
Add/(less)movements in deferrals and accurals (2,184) (Inc)/Dec in debtors 1,608 (950) 1,924 (1,200) 101 (Inc)/Dec in prepayments (666) - - - 63 (Inc)/Dec in inventory 53 - 34 - 675 Inc/(Dec) in creditors and other payables 166 430 770 430
Inc/(Dec) in provision for current employee (21) 63 - - - entitlements (1,366) Total net movement in working capital items 1,224 (520) 2,728 (770) Add/(Less) investing activity items Loss/(Gain) on disposal of property, plant and 11 2 - - - equipment and intangibles 4,744 Net cash flow from operating activities 7,417 4,819 8,480 4,133
Other than debtors, creditors and other payables the figures presented in these financial statements are net of GST (i.e. excludes GST).
Explanations of major variances against the Budget are provided in Note 19. The notes to the accounts form part of and are to be read in conjunction with these financial statements 46 Annual Report 2016 - 2017
Statement of commitments
as at 30 June 2017
The amount disclosed below are future commitments based on the current rental rates.
Actual Actual 2016 2017 $000 $000 Non-cancellable operating lease commitments 7,396 Not later than one year 7,221 13,471 One to five years 30,496 5,951 More than five years 9,097
26,818 Total non-cancellable operating lease commitments 46,814
Non-cancellable operating lease commitments
The Service has long-term leases on its premises in regular market-rate reviews. There are no escalation clauses Wellington. The annual lease payments are subject to three for the Bowen House, No. 1 The Terrace or Thorndon Store yearly reviews. leases.
The Service leases four properties. Bowen House is a lease Bowen House is leased to 14 December 2022 and has two covering levels ground to 21 for office accommodation, two rights of lease renewal dates for six years each thereafter residential units and car parks. No. 3 The Terrace is for select with a final expiry of 14 December 2034. committee and meeting room accommodation with a separate lease at No.1 The Terrace used for Parliament TV. The The Thorndon Store lease renewal date is 31 August 2021. Thorndon Store is used as an off-site storage facility only. The No. 3 the Terrace has no lease renewal dates; No. 1 The Terrace has a termination date of 31 December 2018. There are no contingent rents; they are all fixed term. There are no restrictions imposed by the lease arrangements and Other non-cancellable commitments only the No. 3 The Terrace lease is cancellable after 24 years The Service has entered into non-cancellable contracts for from the start of the lease. computer support, building services and other contracts for services. There is an escalation clause on No. 3 The Terrace of an annual fixed increase in rent at 3% compounding as well as
The notes to the accounts form part of and are to be read in conjunction with these financial statements 47
Operating leases as a lessor
Actual Actual 2016 2017 $000 $000 Non-cancellable operating leases 927 Not later than one year 846 1,248 Later than one year and not later than five years 366
2,175 Total non-cancellable operating leases 1,212
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.
Statement of contingent liabilities and contingent assets as at 30 June 2017
Contingent liabilities There were no quantifiable contingent liabilities in 2017 (2016: nil).
Contingent assets There are no contingent assets in 2017 (2016: nil).
The notes to the accounts form part of and are to be read in conjunction with these financial statements 48 Annual Report 2016 - 2017
Notes to the financial statements
Note 1 Statement of accounting policies
Reporting entity Standards issued and not yet effective and not early Parliamentary Service (the “Service”) is a Government adopted Department as defined by the Public Finance Act 1989 (PFA) In 2015, the External Reporting Board issued Disclosure and is domiciled and operates in New Zealand. The relevant Initiative (Amendments to PBE IPSAS 1), 2015 Omnibus legislation governing the Service’s operations includes the Amendments to PBE Standards, and Amendments to PBE PFA and the Parliamentary Service Act 2000. The Service’s Standards and Authoritative Notice as a Consequence ultimate parent is the New Zealand Crown. of XRB A1 and Other Amendments. These amendments apply to PBEs with reporting periods beginning on or In addition the Service has reported on Crown activities that after 1 January 2016. There has been no effect in applying it administers. these amendments in the preparation of the 30 June 2017 financial statements. The Service’s primary objective is to provide services to members of Parliament and other agencies rather than Presentation currency and rounding making a financial return. The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand The Service has designated itself as a public benefit entity dollars ($000). The functional currency of the Service is New (PBE) for financial reporting purposes. Zealand dollars.
The financial statements of the Service are for the year ended Significant accounting policies 30 June 2017. The financial statements were authorised for Significant accounting policies are included in the notes to issue by the General Manager on 28 September 2017. which they relate.
Basis of preparation Goods and services tax (GST) The financial statements have been prepared on a going The Financial Statements, including appropriation concern basis, and the accounting policies have been statements, are exclusive of GST, except for Creditors and applied consistently throughout the period. Debtors, which are GST inclusive. All other statements and notes are GST exclusive. Measurement base The financial statements have been prepared on a historical The amount of GST owing to or from the Inland Revenue cost basis. Department at balance date, being the difference between Output GST and Input GST, is included in Creditors or Statement of compliance Debtors, as appropriate. The financial statements of the Service have been prepared pursuant to the PFA, which include the requirement to Commitments and contingencies are disclosed excluding GST. comply with New Zealand generally accepted accounting practice (NZ GAAP), and Treasury Instructions. Income tax The Service is a public authority and consequently is exempt The financial statements have been prepared in accordance from the payment of income tax in terms of the Income Tax Act and compliance with Tier 1 PBE accounting standards. 2007. Accordingly, no provision for income tax has been made. 49
Cost allocation policy actual results. Estimates and assumptions are continually The Service has determined the cost of outputs using the evaluated based on historical experience and other factors, cost allocation system outlined below: including expectations of future events that are believed to be reasonable under the circumstances. The estimates and Direct costs are those costs directly attributed to an output. assumptions that have a significant risk of causing a material Indirect costs are those costs that cannot be identified in an adjustment to the carrying amounts of assets and liabilities economically feasible manner with a specific output. over the next financial year are referred under the relevant notes. Direct costs are charged directly to outputs. Indirect costs are charged to outputs based on key cost drivers and related Forecast policies activity or usage information. Depreciation and capital costs The forecasts have been compiled on the basis of existing are charged on the basis of asset utilisation. Personnel costs government policies and ministerial expectations at the time are charged based on actual time incurred. the statements were finalised and reflect all government decisions at the date the information was prepared. While Critical accounting estimates and assumptions the Service regularly updates its forecasts, updated forecast In preparing these financial statements, estimates and financial statements for the year ending 30 June 2016 will assumptions have been made concerning the future. These not be published. estimates and assumptions may differ from the subsequent
Note 2: Departmental and other revenue
Unaudited Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 $000 $000 $000 $000
2,805 ICT services including network support 2,691 2,600 2,600 2,600 1,962 Services to the Office of the Clerk 1,960 1,960 1,960 1,960 - Services to the Parliamentary Counsel Office 173 - - - 1,008 Rental revenue 1,307 950 1,200 950 163 Parliament shop trading 151 150 150 150 75 Services to other agencies 71 75 75 75 537 Other 1,430 580 1,706 770 6,550 Total departmental and other revenue 7,783 6,315 7,691 6,505
5,868 Department revenue 6,174 5,716 6,052 5,906 682 Other revenue 1,609 599 1,639 599 6,550 Total departmental and other revenue 7,783 6,315 7,691 6,505 50 Annual Report 2016 - 2017
Revenue Crown transactions are considered The fair value of Revenue Crown has been determined to be to be non-exchange transactions. Revenue equivalent to the funding entitlement. Crown is measured based on the Service’s funding entitlement for the reporting period. The funding Other revenues entitlement is established by Parliament when it passes the Departmental revenue: Revenue received from other Appropriation Acts for the financial year. The amount of government departments in exchange for service provided. revenue recognised takes into account any amendments to appropriations approved in the Appropriation Sale of services: The sale of services is recognised in the (Supplementary Estimates) Act for the year and certain other accounting period in which the services are provided. unconditional funding adjustments formally approved prior to balance date. Rental revenue from sub-leasing: Rental revenue under an operating sublease is recognised as revenue on a straight- There are no conditions attached to the funding from the line basis over the lease term. Crown. However, Parliamentary Service can only incur expenses within the scope and limits of its appropriations.
Note 3: Personnel expenses
Unaudited Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 $000 $000 $000 $000 20,839 Salaries and wages 22,165 22,348 22,054 26,324 Employer contribution to defined 218 203 206 186 181 contribution plans* 365 Increase/(Decrease) in employee entitlements 100 12 389 389 77 Other 59 77 62 63
21,499 Total personnel costs 22,527 22,643 22,691 26,957
*Employer contributions to defined contribution plans include contributions to the State Sector Retirement Savings Scheme, KiwiSaver, and the Government Superannuation Fund. 51
Superannuation schemes:
Defined contribution schemes: Obligations for contributions to use defined benefit accounting; as it is not possible to the State Sector Retirement Savings Scheme, Kiwi Saver to determine from the terms of the scheme the extent to and the Government Superannuation Scheme (GSF) are which the surplus or deficit will affect future contributions accounted for as defined contribution superannuation by individual employers, as there is no prescribed basis for schemes and are recognised as an expense in the surplus or allocation. The Service has employees who are members deficit as incurred. of the Government Superannuation Fund. This is a fully funded Government scheme and as a result no liability is Defined benefit schemes:The Service belongs to the GSF. GSF recognised. The scheme is therefore accounted for as a is a defined benefit plan. Insufficient information is available defined contribution scheme.
Note 4: Capital charge The capital charge for the year ended 30 June 2017 was $1.832 million (2016 $2.092 million) at the rate of 6-7% (2016:7-8%).
The capital charge is an expense based on the Crown’s investment in Parliamentary Service. The expense is recognised in the period to which the charge relates. The Service pays a capital charge to the Crown on taxpayers’ funds as at 30 June and 31 December each year.
Note 5: Other expenses Unaudited Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 $000 $000 $000 $000 115 Fees to Auditor for audit of financial statements 117 108 117 117 5,258 Operating lease rentals 4,767 5,306 4,758 4,758 1,541 Consultancy 1,553 2,652 1,702 1,422 6,662 Information technology costs 7,963 7,108 6,855 7,108 4,020 Maintenance 4,560 4,612 4,107 4,612 3,703 Premises costs & utilities 3,769 3,901 3,637 3,901 348 Restructuring Costs 245 - 65 65 Net loss on disposal or property, plant, and 11 2 - - - equipment 5,868 Other expenses 6,142 3,701 8,158 5,144
27,526 Total other expenses 29,118 27,388 29,399 27,127 52 Annual Report 2016 - 2017
Note 6: Debtors and other receivables
Unaudited Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 $000 $000 $000 $000 11,050 Debtor Crown 9,530 10,530 9,530 10,730 344 Departmental 422 50 - - 460 Other debtors 294 250 400 400
11,854 Total debtors and receivables 10,246 10,830 9,930 11,130
Debtor Crown balance reflects undrawn Revenue on behalf of Parliamentary Service Crown activity, the Crown funding and is categorised as a non- Parliamentary Counsel Office and the Office of the Clerk. exchange transaction; all other categories originate from exchange transactions. The Service had not yet been reimbursed for these payments at balance date. The carrying value of debtors Departmental receivables incorporate payments made and other receivables approximates their fair value. The aging profile of receivables at year end is detailed below:
Actual Actual 2016 2017 $000 $000 11,839 Not past due 10,201 3 Past due 1-30 days 8 12 Past due over 30 days 37
11,854 Total 10,246
Short term debtors or receivables are recorded at the amount due, less any provision for uncollectability. A receivable is considered uncollectable when there is evidence that the Service will not be able to collect the amount due. The amount that is uncollectable is the difference between the amount due and the present value of the amount expected to be collected. 53
Note 7: Inventory
Actual Actual 2016 2017 $000 $000 Held for distribution 46 Inventories held for use in the provision of goods and services 26 Commercial activities 33 Shop stock held for sale -
79 Total inventory 26
Inventory consists of items held for resale in the As at 30 June 2017, the Services’ gift shop ceased trading. Parliamentary Shop and some computer equipment. Inventory stock of $19k (2016: nil) as at that date was written off. Inventory is carried at the lower of cost or net realisable value. The Service values inventory by applying a weighted average The remaining balance of inventory is computer equipment. cost formula. Inventory is tested for impairment annually.
No inventories are pledged as security for liabilities or subject to retention of title clauses.
Inventory held for distribution or consumption in the The amount of any write-down for the loss of service potential provision of services is measured at cost adjusted, or from cost to net realisable value is recognised in the surplus when applicable, for any loss of service potential. The or deficit in the period of the write-down. Service applies the weighted average cost valuation method.
Inventory held for sale is valued at the lower of cost and net realisable value (using the weighted average cost method). 54 Annual Report 2016 - 2017
Note 8: Property, plant and equipment
Leasehold Office Property Motor Plant & Teleco Library Work in all units $000 Furniture Computers equipment improvements vehicles equipment equipment collections progress Total
Cost or valuation Balance at 1 July 2015 3,566 12,022 1,486 20,783 126 4,982 759 - 216 43,940 Additions - 129 62 278 - - - - 885 1,354 Transfers from work - 243 96 127 - 17 - - (483) - in progress Disposals - (1,006) (52) - - (208) - - - (1,266) Write Off ------
Balance at 30 June 2016 3,566 11,388 1,592 21,188 126 4,791 759 - 618 44,028
Balance at 1 July 2016 3,566 11,388 1,592 21,188 126 4,791 759 - 618 44,028 Additions ------1,765 1,765 Transfer from Crown ------4,394 - 4,394 Transfers from work in - 797 138 984 - 8 - 93 (2,020) - progress Adjustments - - - - 1 - - (1) - Disposals (2) (4,104) (73) (152) - (3) - - - (4,334)
Balance at 30 June 2017 3,564 8,081 1,657 22,020 127 4,796 759 4,486 363 45,853
Accumulated depreciation and impairment losses
Balance at 1 July 2015 (3,359) (10,399) (1,382) (12,586) (17) (4,629) (731) - - (33,103)
Depreciation expense (65) (1,235) (72) (1,355) (25) (167) (17) - - (2,936)
Eliminate on disposal - 1,006 41 - - 208 - - - 1,255
Balance at 30 June 2016 (3,424) (10,628) (1,413) (13,941) (42) (4,588) (748) - - (34,784)
Balance at 1 July 2016 (3,424) (10,628) (1,413) (13,941) (42) (4,588) (748) - - (34,784)
Depreciation expense (32) (529) (113) (1,547) (25) (145) (5) (101) - (2,497) Adjustments - (2) ------(2) Eliminate on disposal 2 4,104 71 152 - 3 - - - 4,332
Balance at 30 June 2017 (3,454) (7,055) (1,455) (15,336) (67) (4,730) (753) (101) - (32,951)
Carrying amounts At 30 June 2015 207 1,623 104 8,197 109 353 28 - 216 10,837 At 30 June 2016 142 760 179 7,247 84 203 11 - 618 9,244 At 30 June 2017 110 1,026 202 6,684 60 66 6 4,385 363 12,902 55
Property, plant and equipment (PPE) service potential associated with the item will flow to the PPE consists of furniture, plant and equipment, Service and the cost of the item can be measured reliably. office equipment, computers, motor vehicles, leasehold The costs of day to day servicing of PPE are recognised in improvements, telecommunication equipment and the statement of comprehensive revenue and expense as library collections. PPE acquired through non-exchange they are incurred. transactions are measured at fair value at the date of acquisition. PPE is measured at cost, less accumulated Depreciation depreciation and impairment losses. Depreciation is provided on a straight-line basis on all PPE at rates that will write-off the cost of the assets to their Additions estimated residual values over their useful lives. The cost of an item of PPE is recognised as an asset if it is probable that future economic benefits or service potential Impairment of property, plant, and equipment associated with the item will flow to the Service and the cost PPE that have a finite useful life are reviewed for impairment of the item can be measured reliably. whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment Work in progress is recognised at cost less impairment and is loss is recognised for the amount by which the asset’s carrying not depreciated. The total cost of this work is transferred to amount exceeds its recoverable amount. the relevant asset category on its completion. The recoverable amount is the higher of an asset’s fair value PPE costing more than $2,000 excluding GST is capitalised less costs to sell or its value in use. and recorded at historical cost. Value in use is depreciated replacement cost for an asset Disposals where the future economic benefits or service potential of Gains and losses on disposals are determined by comparing the asset are not primarily dependent on the asset’s ability the disposal proceeds with the carrying amount of the asset. to generate net cash inflows and where the Service would, if Gains and losses on disposals are included in the statement deprived of the asset, replace its remaining future economic of comprehensive revenue and expense. When a revalued benefits or service potential. asset is sold, the amount included in the revaluation reserve in respect of the disposed asset is transferred to taxpayers’ funds. If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written Subsequent costs down to the recoverable amount. The total impairment loss Costs incurred subsequent to initial acquisition are capitalised is recognised in the surplus or deficit. The reversal of an only when it is probable that future economic benefits or impairment loss is recognised in the surplus or deficit. 56 Annual Report 2016 - 2017
The useful lives and associated depreciation rates of major classes of PPE 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% Library collections 3 - 7 years 14.3% - 33.3% Library collections – rare and valuable Not depreciated -
Leasehold improvements are depreciated over the unexpired Assets are purchased on behalf of members of Parliament period of the lease or the estimated remaining useful lives of including for their out-of-parliament offices. The useful the improvements, whichever is the shorter. life and associated depreciation rates for these assets are aligned to the parliamentary term or the remainder of the The residual value and useful life of an asset is reviewed, and parliamentary term. adjusted if applicable, at each financial year-end.
A three year review of the Service’s “Crown Library’s transferred to the Service during the October baseline collections” was completed in 2016 which identified update. a large amount of material that was no longer deemed useful in providing information, research, and reference Library collections have been categorised as: services to members and Parliamentary staff. This material • Cartography was offered to suitable recipients including the National • Monographs Library and other libraries. Revaluation reserves relating to • Newspapers these items have been reversed. • NZ parliamentary publications • Overseas parliamentary publications The collection remaining under Crown ownership was • Reference collections and revalued by an independent expert valuer Webb’s as at 31 • Serial collections. May 2017. Of these, only Monographs and Serial collections have During the 2016/17 year, $4.394m of the remaining Library been classified as depreciating assets. The remaining collection in Crown (non-departmental) was identified collection items are rare and valuable and classified as non- as departmental library collections and subsequently depreciating assets. 57
Note 9: Intangibles
Internally Acquired generated Work in all units $000 software software progress Total Cost or valuation 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 progress 2,288 - (2,288) - Disposals (145) - - (145) Balance at 30 June 2016 12,840 1,480 1,864 16,184
Balance at 1 July 2016 12,840 1,480 1,864 16,184 Additions - - 2,914 2,914 Transfers from work in progress 49 1,751 (1,800) - Disposals (1,683) (25) - (1,708) Balance at 30 June 2017 11,206 3,206 2,978 17,390
Internally Acquired generated Work in all units $000 software software progress Total Accumulated amortisation and impairment losses 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)
Balance at 1 July 2016 (8,261) (647) - (8,908) Amortisation expense (1,709) (629) - (2,338) Eliminate on disposal 1,683 25 - 1,708 Balance at 30 June 2017 (8,287) (1,251) - (9,538)
Carrying amounts At 30 June 2015 4,375 1,086 1,828 7,289 At 30 June 2016 4,579 833 1,864 7,276 At 30 June 2017 2,919 1,955 2,978 7,852 58 Annual Report 2016 - 2017
Software acquisition and development: computer computer software are recognised as an expense when software licenses are capitalised based on the incurred. Costs of software updates or upgrades are only costs incurred to acquire and bring to use the specific capitalised when they increase the usefulness or value of software. the software.
Costs that are directly associated with the development Amortisation: The carrying value of an intangible asset with of software for internal use by the Service are recognised a finite life is amortised on a straight-line basis over its useful as an intangible asset. Direct costs include the software life. Amortisation begins when the asset is available for use development, employee costs, and an appropriate portion of and ceases at the date that the asset is derecognised. The relevant overheads. Staff training costs are recognised as an amortisation charge for each period is recognised in the expense when incurred. Costs associated with maintaining surplus or deficit.
The useful lives and associated amortisation rates of intangible assets have been estimated as follows
computer software 3 - 7 years 14.3% - 33.3%
Note 10: Creditors and other payables Unaudited Revised Actual Actual Budget Budget Forecast 2016 Creditors and other payables under 2017 2017 2017 2018 $000 exchange transactions $000 $000 $000 $000 156 Trade creditors 625 700 650 650 3,425 Accrued expenses 3,119 2,800 2,865 2,865
3,581 Total under exchange transactions 3,744 3,500 3,515 3,515 Creditors and other payables under non- exchange transactions - Accrued FBT expense 1 - - - 255 GST payable (receivable) 83 500 250 250
255 Total under non-exchange transactions 84 500 250 250
3,836 Total creditors and other payables 3,828 4,000 3,765 3,765 59
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 Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 $000 $000 $000 $000 Current Liabilities 367 Retirement and long service leave 324 555 927 1,337 1,021 Annual leave 1,112 1,665 1,358 1,358 32 Sick leave 47 - - -
1,420 Total current portion 1,483 2,220 2,285 2,695 Non-current liabilities 607 Retirement and long service leave 676 420 587 607
607 Total non-current portion 676 420 587 607 2,027 Total employee entitlements 2,159 2,640 2,872 3,302
Short-term employee entitlements Long-term employee entitlements Employee benefits expected to be settled within Employee benefits that are due to be settled beyond 12 12 months of balance date are measured at nominal values months after the end of the reporting period in which the based on accrued entitlements at current rates of pay. employee renders the related service, such as long service These include salaries and wages accrued up to balance leave and retiring leave, are calculated using the Treasury date, annual leave earned but not yet taken at balance date, guidance. The calculations are based on: retiring and long service leave entitlements expected to be • likely future entitlements accruing to staff, based on settled within 12 months, and sick leave. years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and A liability for sick leave is recognised to the extent that contractual entitlements information; and absences in the coming year are expected to be greater • the present value of the estimated future cash flows. than the sick leave entitlements earned in the coming year. The amount is calculated based on the history of sick leave Expected future payments are discounted using market taken by all employees for the last three years to derive the yields on government bonds at balance date with terms to average amount of accrued sick leave taken over and above maturity that match, as closely as possible, the estimated the entitlement for the year. future cash outflows for entitlements. The inflation factor is based on the expected long-term increase in remuneration for employees. 60 Annual Report 2016 - 2017
Treasury guidance was used to estimate the value of long service leave, retirement leave and sick leave as at 30 June 2017. The major economic assumptions adopted in the valuation process for long service and retirement leave were:
Salary increase rate: 2.40 – 3.00% per annum (2016: 2.00 – 3.00%) Discount Rate: 1.97 – 3.92% per annum (2016: 1.95 – 3.13%)
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: Provisions
The Service does not have any provisions as at 30 June 2017 (2016: nil).
Note 13: Return of operating surplus
Actual Actual 2016 2017 $000 $000 703 Net surplus 1,459 703 Net surplus before other expenses 1,459 703 Total return of operating surplus 1,459
The return of operating surplus to the Crown is required to be paid by 31 October 2017.
Note 14: Taxpayers’ funds
Actual Actual 2016 2017 $000 $000 26,156 Balance at 1 July 2016 26,156 703 Surplus for year 1,459 Owner transactions - Capital contribution - non cash 4,394 (703) Return of operating surplus to the Crown (1,459)
26,156 Balance at 30 June 2017 30,550 61
Note 15: Related party transactions
Key management personnel remuneration
Actual Actual 2016 2017 $000 $000 Leadership Team, including Chief Executive 1,676 Remuneration 1,642 7 Full time equivalent staff 7
Key management personnel include the General Manager and six members of the Executive Leadership Team, 7 FTE’s (2016: 7 FTE’s).
The Service is a wholly owned entity of the Crown.
Related party disclosures have not been made for Significant transactions with government-related entities transactions with related parties that are The Service has received funding from the Crown of $58m • within a normal supplier or client/recipient (2016: $51m) to provide services to the public, House of relationship; and Representatives and support services and/or accommodation • on terms and conditions no more or less favourable to other government agencies, as part of a Service Level than those that it is reasonable to expect the Service Agreement, for the year ended 30 June 2017. would have adopted in dealing with the party at arm’s length in the same circumstances. These agencies are: • Office of the Clerk of the House of Representatives Further, transactions with other government agencies (for • Parliamentary Counsel Office example, Government departments and Crown entities) are not disclosed as related party transactions when they are consistent with the normal operating arrangements between government agencies and undertaken on the normal terms and conditions for such transactions. 62 Annual Report 2016 - 2017
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 Revised Actual Actual Budget Budget Forecast 2016 2017 2017 2017 2018 $000 $000 $000 $000 $000 Financial assets measured at amortised costs Loans and receivables 3,528 Cash and cash equivalents 5,563 5,247 6,071 4,295 11,854 Receivables 10,246 10,830 9,930 11,130 15,382 Total loans and receivables 15,809 16,077 16,001 15,425
Financial liabilities measured at amortised costs 156 Creditors and other payables 625 700 650 650
16B - Financial instruments risks
The Service is party to financial instrument debtors. The maximum exposure from trade debtors is the arrangements as part of its everyday operations. value of the non-Government debtors i.e. $6k (2016: $4k). These include instruments such as bank balances, accounts Default is considered by management to be unlikely and receivable, and accounts payable. The fair value of the the probable exposure has been determined as negligible. Service’s financial instruments is the same as the carrying There were no changes in receivables or payables during the value. year that can be attributed to credit risk.
The Service does not have any gains or losses on its financial The Service is only permitted to deposit funds with Westpac instruments and no impairments have been recognised to Banking Corporation (Westpac), a registered bank, and date. enter into foreign exchange forward contracts with the New Zealand Debt Management Office (NZDMO). All financial assets and liabilities are non-derivative in form and function and are neither available for sale nor held to The Service holds cash with Westpac. Westpac is part of the maturity. Crown Retail Deposit Guarantee Scheme and so all deposits up to $1 million held with Westpac are guaranteed by the The fair value of the financial instruments is deemed not Crown. materially different from valuation at amortised cost. As a result, the carrying value of the instruments is at fair value. The Service does not require any collateral or security to support financial instruments with financial institutions Credit risk that it deals with, or with the NZDMO, as these entities have Credit risk is the risk that a third party will default on its high credit ratings. For its other financial instruments, the obligations to the Service, causing the Service to incur a loss. Service does not have significant concentrations of credit risk. The Service is not exposed to any other concentrations In the normal course of its business, credit risk arises from of credit risk. 63
Credit facilities The Service does not have bank overdraft facilities as at 30 In meeting its liquidity requirements, the Service closely June 2017. The Service has a letter of credit with Westpac monitors its forecast cash requirements with expected cash for $10,000 for the purpose of staff cashing pay and expense drawdowns from the New Zealand Debt Management reimbursement cheques. Office. The Service maintains a target level of available cash to meet liquidity requirements. Liquidity risk Liquidity risk is the risk that the Service will encounter The Service considers that it does not have a significant difficulty raising liquid funds to meet commitments as they liquidity risk as it ensures it has adequate working capital fall due. coverage at all times.
Note 17: Capital management
The Service’s capital is its equity (or taxpayers’ funds), which the government budget processes, the Public Finance Act comprise general funds. Equity is represented by net assets. 1989 and Treasury Instructions.
The Service manages its revenues, expenses, assets, liabilities, The objective of managing the Service’s equity is to ensure and general financial dealings prudently. The Service’s the Service effectively achieves its goals and objectives for equity is largely managed as a by-product of managing which it has been established, whilst remaining a going revenue, expenses, assets, liabilities and compliance with concern.
Note 18: Events after balance date There were no significant events after balance date (2016: nil).
Note 19: Explanation of major variances against budget
Statement of comprehensive revenue and expense Statement of financial position During the year the Budget expenditure of $57.462 million Total assets were higher than Budget by $5.200 million as a was revised to $58.881 million, an increase by $1.419 million result of the following items: due to: • Prepayments $0.557 million higher than budget. • Expense transfer of $0.481 million from 2016 to 2017. • Non-current assets comprising of PPE and • Increased departmental and other revenue of $0.578 Intangibles assets were higher than budget by $4.930 million million due mainly to the $4.394 million transfer of • $1.000 million conversion of non-departmental the library collections from the Crown. There was also capital to departmental to progress the Parliamentary an impact of PPE and Intangibles actual spend being Accommodation Strategy. $0.329 million above budget. • Savings in capital charge expenditure by $0.415 million due to change in rate from 8% - 6%. • $0.225 million transfer of funding to the Office of the Clerk. 64 Annual Report 2016 - 2017 65
Financial Statements Parliamentary Service Crown for the year ended 30 June 2017 66 Annual Report 2016 - 2017
Non-departmental statements and schedules
for the year ended 30 June 2017
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 2017
Unaudited Revised Actual Actual Budget1 Budget2 2016 2017 2017 2017 $000 $000 $000 $000
205 Revenue 15 - - 205 Total non-departmental revenue 15 - -
The notes to the accounts form part of and are to be read in conjunction with these financial statements For a full understanding of the Crown’s financial position and the results of its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2017.
1 Budget 2017 figures are those numbers reported in the 2016 Estimates of Appropriations. 2 Revised Budget 2017 figures are adjustments to the Budget figures and are reported in the 2017 Supplementary Estimates. 67
Schedule of non-departmental expenses for the year ended 30 June 2017
Unaudited Revised Actual Actual Budget Budget 2016 2017 2017 2017 $000 $000 $000 $000
Expenses Other expenses incurred by the Crown 20,762 Annual 17,978 22,678 23,278 59,520 Other 62,163 66,543 67,826 80,282 Sub total 80,141 89,221 91,104 3,600 GST expensed 3,699 - 5,000 83,882 Total non-departmental expenses 83,840 89,221 96,104
Schedule of non-departmental capital expenditure for the year ended 30 June 2017
Unaudited Revised Actual Actual Budget Budget 2016 2017 2017 2017 $000 $000 $000 $000
Capital Expenditure Purchases and development of capital assets by the Crown - Annual 1,400 - - 8,469 Other 5,458 5,068 6,792 8,469 Total non-departmental capital expenditure 6,858 5,068 6,792 68 Annual Report 2016 - 2017
Schedule of non-departmental assets
as at 30 June 2017
Unaudited Revised Actual Actual Budget Budget 2016 2017 2017 2017 $000 Notes $000 $000 $000
Current Assets 11,850 Cash and cash equivalents 2 17,815 29,737 15,600 14 Debtors 2 & 3 10 9 15 91 Prepayments 3 64 172 100 11,955 Total current assets 17,889 29,918 15,715 Non-current assets 471,183 Property, plant and equipment 4 468,581 420,165 458,283 483,138 Total non-departmental assets 486,470 450,083 473,998
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 2017. 69
Schedule of non-departmental liabilities and revaluation reserves as at 30 June 2017
Unaudited Revised Actual Actual Budget Budget 2016 2017 2017 2017 $000 Notes $000 $000 $000
Liabilities Current liabilities 3,151 Creditors 2 & 7 3,399 2,741 3,150 1,323 Employee entitlements 1,388 801 1,578 4,474 Total current liabilities 4,787 3,542 4,728 Non current liabilities - Employee entitlements - 20 - - Total non current liabilities - 20 - Revaluation reserve 63,000 Land revaluation reserve 4 & 5 63,000 63,000 63,000 212,769 Building revaluation reserve 4 & 5 212,769 163,375 212,769 7,366 Antique and art revaluation reserve 4 & 5 11,410 7,366 7,366 - Library collection revaluation reserve 4 & 5 - 22,519 - 283,135 Total revaluation reserve 287,179 256,260 283,135
Total non-departmental liabilities and 287,609 291,966 259,822 287,863 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 2017. 70 Annual Report 2016 - 2017
Schedule of non-departmental commitments
as at 30 June 2017
There are no non-departmental operating commitments (2016: 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 2016 2017 $000 $000
Capital commitments 1,050 Buildings 2,663 1,050 Total capital commitments 2,663
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). Schedule of non-departmental contingent liabilities and contingent assets
as at 30 June 2017
Quantifiable contingent liabilities
Actual Actual 2016 2017 $000 $000
Contingent liability 247 Members' superannuation 230 247 Total contingent liability 230
Contingent assets The Service on behalf of the Crown has no contingent assets (2016: 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 2017. 71
Notes to the non-departmental financial statements
Note 1: Statement of accounting policies
Reporting entity Accepted Accounting Practice (Tier 1 Public Sector Public These non-departmental schedules and statements present Benefit Entity Accounting Standards) as appropriate for financial information on public funds managed by the public benefit entities. Parliamentary Service on behalf of the Crown. Further details of the department’s management of these Crown assets and Significant accounting policies liabilities are provided in the output performance sections of Significant accounting policies are included in the notes to this report. These non-department balances are consolidated which they relate. into the Financial Statements of the Government for the year ended 30 June 2017. Goods and Services Tax All items in the financial statements, including appropriation For a full understanding of the Crown’s financial position, statements, are stated exclusive of Goods and Services results of operations and cash flows for the year, refer to the Tax (GST), except for receivables and payables, which are Financial Statements of the Government. stated on a GST-inclusive basis. In accordance with Treasury Instructions, GST is returned on revenue received on behalf Basis of preparation of the Crown, where applicable. However, an input tax The financial statements have been prepared on a historical deduction is not claimed on non-departmental expenditure. cost basis, modified by the revaluation of certain property, Instead, the amount of GST applicable to non-departmental plant and equipment. expenditure is recognised as a separate expense and eliminated against GST revenue on consolidation of the The non-departmental schedules and statements have Financial Statements of the Government. been prepared in accordance with the accounting policies of the Financial Statements of the Government, Treasury Critical accounting estimates Instructions, and Treasury Circulars. The estimates and assumptions that have a significant risk of causing a material misstatement to the carrying amounts Measurement and recognition rules applied in the of assets and liabilities within the next financial year are preparation of these non-departmental schedules and referred to overleaf: statements are consistent with New Zealand Generally 72 Annual Report 2016 - 2017
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 2016 2017 $000 $000
Cash and debtors 11,850 Cash and cash equivalents 17,815 14 Debtors 10 11,864 Total Cash and debtors 17,825
Financial liabilities measured at amortised cost 1,248 Creditors 1,368
The Crown does not have any gains or losses on its financial instruments and no impairments have been recognised to date. The fair value of the financial instruments is deemed not materially different from valuation at amortised cost. As a result, the carrying value of the instruments is at fair value.
2B – Financial instrument risks collateral or security to support financial instruments with The Service is party to financial instrument arrangements as financial institutions that it deals with, as this entity has high part of its everyday operations. These include instruments credit ratings. For its other financial instruments, the Service such as bank balances, accounts receivable and accounts does not have significant concentrations of credit risk. payable. The fair value of the Service’s financial instruments is the same as the carrying value. The Service is not exposed to any other concentrations of risk.
The Service does not have any gains or losses on its financial Credit facilities instruments and no impairments have been recognised to The Service does not have bank overdraft facilities as at 30 date. All financial assets and liabilities are non-derivative June 2017. in form and function and are neither available for sale nor held to maturity. The fair value of the financial instruments is Liquidity risk deemed not materially different from valuation at amortised Liquidity risk is the risk that the Service will encounter cost. As a result the carrying value of the instruments is at difficulty raising funds to meet commitments as they fall fair value. due. In meeting its liquidity requirements, the Service closely monitors its forecast cash requirements with expected cash Credit risk drawdowns from the NZDMO. The Service maintains a target Credit risk is the risk that a third party will default on its level of available cash to meet liquidity requirements. The obligations to the Service, causing the Service to incur a loss. Service considers that it does not have a significant liquidity In the normal course of its business, the Service’s credit risk risk as it ensures it has adequate working capital coverage arises from debtors however there is no exposure from non- at all times. Government debtors in trade debtors this year (2016: nil). There were no changes in receivables or payables during the Exposure to risk year that can be attributed to credit risk. The Service is not aware of any exposure to risk regarding financial instruments that would have a significant impact The Service is permitted to deposit funds only with Westpac, on operations. a registered bank. The Service is not required to provide any 73
Note 3: Debtors and prepayments
Actual Actual 2016 2017 $000 $000
Debtors and prepayments - exchange transactions 14 Debtors 10 91 Prepayments 64 105 Total debtors and prepayments - exchange transactions 74
Debtors are initially recorded at fair value, and are use of an allowance account, and the amount of the loss is subsequently measured at amortised cost using recognised in the schedule of non-departmental expenses. the effective method less any provision for impairment. A When a debtor is uncollectible, it is written off against the provision for impairment of debtors is established when allowance account for debtors. Overdue debtors that are there is evidence that the Service will not be able to collect renegotiated are reclassified as current (i.e. not past due). all amounts due according to the original terms. The amount of the impairment is the difference between the asset’s Significant financial difficulties of the debtor, probability carrying amount and the present value of estimated future that the debtor will enter into bankruptcy, and default in cash flows, discounted using the original effective interest payments, are considered indicators that the debtor is likely rate. The carrying amount of the asset is reduced through the to be impaired.
Note 4: Property plant and equipment
Antiques Plant and and art Library Work in Cost or valuation Land Buildings Furniture equipment collection collection progress Total all units $000’s Balance at 1 July 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 - Antiques and art - - - - 17 188 - 205 collection and Library collection Transfers from work in progress - 835 31 485 - - (1,351) - Revaluation increase/(decrease) - 16,501 - - - (22,519) - (6,018) Disposals - - - - (2,198) - (2,198) Balance at 30 June 2016 100,000 340,498 13,643 2,904 12,339 4,745 11,064 485,193
Balance at 1 July 2016 100,000 340,498 13,643 2,904 12,339 4,745 11,064 485,193 Additions - other ------6,856 6,856 Additions - Antiques and art - - - - 15 - - 15 collection and Library collection Transfers from work in progress - 10,704 167 3,517 - - (14,388) - Adjustments - - - - - 1 - 1 Revaluation increase/(decrease) - - - - 4,044 - - 4,044 Disposals ------Transfer to Department (4,394) - (4,394) Balance at 30 June 2017 100,000 351,202 13,810 6,421 16,398 352 3,532 491,715 74 Annual Report 2016 - 2017
Antiques Plant and and art Library Work in Cost or valuation Land Buildings Furniture equipment collection collection progress Total all units $000’s
Accumulated depreciation and impairment losses 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) Eliminated on revaluation - 32,894 - - - 14,344 - 47,238 Eliminate on disposal - - - - - 2,198 - 2,198 Balance at 30 June 2016 - - (13,493) (517) - - - (14,010)
Balance at 1 July 2016 - - (13,493) (517) - - - (14,010) Depreciation expense - (8,718) (29) (377) - - - (9,124) Eliminated on disposal ------Balance at 30 June 2017 - (8,718) (13,522) (894) - - - (23,134)
Carrying amounts At 30 June 2015 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 At 30 June 2017 100,000 342,484 288 5,527 16,398 352 3,532 468,581
Property, plant and equipment consists of the Valuation following classes of assets: Land, buildings, furniture, Revaluations are carried out for a number of classes of plant and equipment, antiques and art, and library property, plant and equipment to reflect the service collections. potential or economic benefit obtained through control of the asset. Revaluation is based on the fair value of the asset The initial cost of property, plant and equipment is the value with changes reported by class of asset. of the consideration given to acquire or create the asset and any directly attributable costs of bringing the asset to Classes of property, plant and equipment that are revalued working condition for its intended use. are revalued at least every five years or whenever the carrying amount differs materially to fair value. Unrealised gains and All property, plant and equipment costing more than $2,000 losses arising from changes in the value of property, plant are capitalised and recorded at historical cost with the and equipment are recognised as at balance date and are exception of Crown furniture where re-statement of costs debited or credited to the Revaluation Reserve. has been made to items of $5,000 or greater only. Accumulated depreciation at revaluation date is eliminated Capital work in progress against the gross carrying amount so that the carrying Capital work in progress is not depreciated. The total cost of amount after revaluation equals the revalued amount. this work is transferred to the relevant asset category on its completion. Land and buildings are valued on a three-yearly basis by independent registered valuers to ensure that the carrying Depreciation amounts do not differ materially from the assets’ fair values. Depreciation of property, plant and equipment is provided Land is valued at current market value, with reference to on a straight-line basis to allocate the cost of assets, less any its highest and best use, subject to its current zoning and estimated residual value, over their useful lives. heritage designation. Buildings are valued at depreciated 75
replacement cost less allowance for physical deterioration, Impairment of property, plant, and equipment optimisation and relevant surplus capacity. The most recent Property, plant and equipment that have a finite useful life valuation of land and buildings was undertaken as at 30 are reviewed for impairment whenever events or changes June 2016. in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the The carrying values of revalued assets are internally assessed amount by which the asset’s carrying amount exceeds its by the Service on an annual basis to ensure that they do recoverable amount. The recoverable amount is the higher not differ materially from the assets’ fair values. If there is of an asset’s fair value less costs to sell and its value in use. a material difference, then the off-cycle asset classes are revalued. Additions between revaluations are recorded at Value in use is the depreciated replacement cost for an asset cost. where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability The Service accounts for revaluations of property, plant, and to generate net cash inflows and where the Service would, if equipment on a class-of-asset basis. deprived of the asset, replace its remaining future economic benefits or service potential. The antique and art collections are valued at fair market value on a three-yearly basis by independent registered If an asset’s carrying amount exceeds its recoverable amount, valuers. The last valuation was undertaken as at 31 May 2017. the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets, the The Library collections are valued at fair market value on a impairment loss is recognised against the revaluation three yearly basis by independent registered valuers. The last reserve for that class of asset. Where that results in a debit valuation was completed as at 12 February 2016. balance in the revaluation reserve, the balance is recognised in the surplus or deficit. Additions In most instances, an item of property, plant and equipment For assets not carried at a revalued amount, the total is initially recorded at its cost. Where an asset is acquired impairment loss is recognised in the surplus or deficit. through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition. The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent Disposals that an impairment loss for that class of asset was previously Gains and losses on disposals are determined by comparing recognised in the surplus or deficit, a reversal of the the proceeds with the carrying amount of the asset. Gains impairment loss is also recognised in the surplus or deficit. and losses on disposal are included in the schedule of revenue and expenses. When revalued assets are sold, the For assets not carried at a revalued amount, the reversal of amounts included in asset revaluation reserves in respect an impairment loss is recognised in the surplus or deficit. of those assets are transferred to the schedule of non- Departmental liabilities and revaluation reserve. 76 Annual Report 2016 - 2017
The estimated economic useful lives and associated depreciation rates of major classes of assets are:
Furniture 15 years Antiques and art collection Not depreciated Buildings 3 - 100 years Plant and equipment 3 - 20 years Land Not depreciated Library collection – rare & valuable Not depreciated
There were disposals of $7.291m of Library collections in 2014, $0.570m in 2015 and a further $2.198m in 2016 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.
Note 5: Revalued assets
Revalued assets – land and buildings Antique and art collections Land and buildings were valued as at 30 June 2016 by Antique and art collections were assessed at fair value as at registered valuer, Darroch Limited. 31 May 2017 by Dunbar Sloane Limited.
The asset valuation was completed in accordance with: Library • Public Benefit Entity International Public Sector A three year review of the Library’s collections was Accounting Standard 17: Property, Plant and completed in 2016. This review identified a large amount Equipment (PBE IPSAS 17) of material that was no longer deemed useful in providing • International Valuation Standards (IVS) and Property information, research, and reference services to members Institute of New Zealand (PINZ) standard and Parliamentary staff. This material was offered to suitable locations including the National Library and other libraries. The land has been assessed at market value at its highest This resulted in the relevant revaluation reserves being and best use, subject to its current zoning and heritage written down completely. The collection remaining in designation. In assessing the market value, land sales within Crown ownership was valued by an independent expert the general area have been considered as a starting point. valuer Webb’s as at 12 February 2016. The parliamentary site comprises a large land area, and hence adjustments have been made for location and size. During the 2016/17 year, $4.394m of the remaining collection in Crown were identified as departmental collection items The basis for the fair value assessment for the buildings is and subsequently transferred to Parliamentary Service depreciated replacement cost less allowance for physical Department during the October baseline update. The deterioration, optimisation and relevant surplus capacity, remaining library collections in Crown are classified as rare as New Zealand International Accounting Standard (NZIAS and valuable and therefore not depreciated. 16) requires this for specialised assets. The buildings are considered specialised assets due to their size and scale and the absence of any directly comparable sales of similar properties as going concerns.
The notes to the accounts form part of and are to be read in conjunction with these financial statements 77
Note 6: Assets held for sale and impairment
The Crown does not have any items of property, plant and equipment classified as held for sale or impairment.
There are no restrictions on title and no assets pledged as security for liabilities.
Note 7: Creditors Actual Actual 2016 2017 $000 $000
Creditors under exchange transactions 1,248 Creditors 1,368 1,903 Accrued expenses 2,031 3,151 Total creditors - exchange transactions 3,399
Note 8: Related party transactions
Related party disclosures have not been made for circumstances. Further, transactions with other government transactions with related parties that are within a normal agencies (for example, Government departments and Crown supplier or client/recipient relationship on terms and entities) are not disclosed as related party transactions when condition no more or less favourable than those that it is they are consistent with the normal operating arrangements reasonable to expect the Service would have adopted between government agencies and undertaken on the in dealing with the party at arm’s length in the same normal terms and conditions for such transactions.
Note 9: Post-balance date events
There we no significant events after balance date (2016: nil). 78 Annual Report 2016 - 2017
Non departmental appropriation statement
Unappropriated expenditure Parliamentary Service Crown did not have any unappropriated expenditure and capital expenditure in 2017 (2016: nil).
Capital Injections Parliamentary Service Crown did not receive any non-departmental capital injections during the year without, or in excess of authority in 2017 (2016: nil).
Statement of budgeted and non- departmental actual expenses and capital expenditure incurred against appropriations
for the year ended 30 June 2017
Unaudited Revised Actual Actual Budget Budget 2016 2017 2017 2017 $000 $000 $000 $000
Appropriations for non-departmental expenses to be incurred by the Crown*1 11,915 Depreciation expense on parliamentary complex 9,125 14,000 14,000 3,307 Members' communications 3,118 2,828 3,178 1,055 Travel of former MPs 1,103 1,300 1,300 4,485 Travel of members and others 4,632 4,550 4,800 20,762 Annual appropriation 17,978 22,678 23,278
19,640 Members of the House of Representatives' salaries and allowances 19,827 22,000 22,000 2,802 Accommodation of members and travel of members' families 2,707 2,900 2,900 22,442 Appropriations under PLA 22,534 24,900 24,900
43,204 Total annual expense appropriation 40,512 47,578 48,178
*1 These appropriations are exempt from end-of-year performance information under s15D(2)(b)(ii) of the Public Finance Act 1989. 79
Unaudited Revised Actual Actual Budget Budget 2016 2017 2017 2017 $000 $000 $000 $000 Appropriations for non-departmental capital expenditure to be incurred by the Crown*2 - Parliamentary accommodation strategy 1,400 - - - Total annual capital expenditure appropriation 1,400 - -
Multi Year Appropriations - for other expenses to be incurred by the Crown
The Service has a multi-year appropriation (MYA) for other and support services to members, and, during the immediate expenses to be incurred by the Crown for parties to support post-election period, qualifying electoral candidates and their parliamentary operations during the 51st Parliament former members, as allowed under directions given by the including their Leaders’ offices, support staff, research Speaker. This appropriation commenced on 1 October 2014 operations, Whips office, communications, administrative and expires on 30 September 2017.
Unaudited Revised Actual Actual Budget Budget 2016 2017 2017 2017 $000 $000 $000 $000
Multi Year Appropriations for other expenses to be incurred by the Crown* 65 Additional support for members 39 300 79 333 Party and member support ACT 350 368 410 3,852 Party and member support Green 4,183 4,220 4,440 11,966 Party and member support Labour 11,767 12,691 12,796 680 Party and member support Maori 676 764 782 16,434 Party and member support National 18,486 18,684 19,580 3,537 Party and member support NZ First 3,858 4,135 4,289 211 Party and member support United Future 270 481 550 37,078 Total multi year expense appropriation 39,629 41,643 42,926
80,282 Total annual and multi year expense appropriations 80,141 89,221 91,104
*2 This appropriation is exempt from end-of-year performance information under s15D(2)(b)(iii) of the Public Finance Act 1989. 80 Annual Report 2016 - 2017
Details of multi-year appropriations - for other expenses to be incurred by the Crown
Party and Party and Party and Party and Party and Party and Party and Member Additional Member Member Member Member Member Member Support Support to Support Support Support Support Support Support United 2017 $000 Members ACT Green Labour Maori National NZ First Future
Appropriations
Original appropriations 900 1,349 11,655 34,984 3,300 51,097 6,563 1,025 2016/17 adjustments (600) 2 30 75 4 120 19 1 Cumulative adjustments from previous - (365) (41) 377 (1,237) (71) 3,511 (41) year(s) Total adjusted appropriations as at 30 300 986 11,644 35,436 2,067 51,146 10,093 985 June 2017
Expenditure Cumulative expenditure from previous year(s) 146 486 6,130 19,313 1,094 26,704 4,953 346 2016/17 actual expenditure* 39 350 4,183 11,767 676 18,486 3,858 270 Cumulative actual expenditure as at 30 185 836 10,313 31,080 1,770 45,190 8,811 616 June 2017
Appropriations remaining as at 30 June 115 150 1,331 4,356 297 5,956 1,282 369 2017
*Approved appropriations 79 410 4,440 12,796 782 19,580 4,289 550 (Supplementary Estimates 16/17)
Party and Party and Party and Party and Party and Party and Party and Member Additional Member Member Member Member Member Member Support Support to Support Support Suppor Support Support Support United 2016 $000 members ACT Green Labour Maori National NZ First Future
Appropriations Original appropriations 900 1,349 11,655 34,984 3,300 51,097 6,563 1,025 2015/16 adjustments - - 8 - - (901) 885 - Cumulative adjustments from previous - (365) (49) 377 (1,237) 830 2,626 (41) year(s) Total adjusted appropriations as at 900 984 11,614 35,361 2,063 51,026 10,074 984 30 June 2016
Expenditure Cumulative expenditure from previous year(s) 81 153 2,278 7,347 414 10,270 1,416 135 2015/16 actual expenditure* 65 333 3,852 11,966 680 16,434 3,537 211 Cumulative actual expenditure as at 146 486 6,130 19,313 1,094 26,704 4,953 346 30 June 2016
Appropriations remaining as at 754 498 5,484 16,048 969 24,322 5,121 638 30 June 2016
* 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 reporting under s15D(2)(b)(ii) of the Public Finance Act 1989. 81
Details of multi-year appropriations purchase or development of capital assets by the Crown
The Service has a multi-year appropriation for other expenses to be incurred by the Crown for minor capital works within the Parliamentary complex to carry out essential maintenance and minor capital improvements. This appropriation commenced on 1 July 2016 and expires on 30 June 2020.
Unaudited Revised Actual Actual Budget Budget 2016 2017 2017 2017 $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 17,012 17,012 17,012 8,567 Cumulative adjustments from previous years - - - (435) Adjusted appropriation approved 2016/17 (1,076) - (1,076) 24,132 Total adjusted appropriation 15,936 17,012 15,936
13,820 Cumulative actual expenditure at beginning of year - - - 8,469 This year's actual expenditure 5,458 5,068 5,392 22,289 Cumulative actual expenditure as at 30 June 2017 5,458 5,068 5,392
1,843 Appropriation remaining as at 30 June 2017 10,478 11,944 10,544
*This appropriation has an exemption from year end performance reporting under s15D(2)(b)(ii) of the Public Finance Act 1989. 82 Annual Report 2016 - 2017
Schedule on expenditure on travel entitlements of former members and their spouse or partner
Section 42 of the Members of Parliament (Remuneration and Services) Act 2013 requires the Crown to report on expenses for travel entitlements of former members and their spouse or partner. The details required by this section are shown in the table below. This information includes travel which commenced prior to 30 June 2017 for which reimbursement requests were received by 19 August 2017. Claims received after this date will be disclosed in the 2017/18 Annual Report.
Total expenses incurred for Total expenses incurred for Total expenses incurred for Name of former member international air travel domestic air travel rail, road and ferry travel Total Hon James Anderton 1,256 1,661 - 2,917 Philip (Shane) Ardern 1,230 208 - 1,438 Hon Margaret Austin 5,846 146 - 5,992 Hon John Banks 1,957 644 - 2,601 Hon Richard Barker 6,271 2,858 50 9,180 Timothy Barnett 7,532 706 - 8,237 Hon Dr Michael Bassett 10,945 1,242 - 12,187 Rt Hon Sir William Birch - 1,154 - 1,154 Hon Maxwell Bradford 4,756 1,049 455 6,260 Peter Brown 567 162 - 729 Hon Phillida Bunkle 967 1,515 - 2,482 Hon Philip Burdon 2,251 5,226 - 7,477 Hon Sir Thomas Burke 9,091 2,767 163 12,021 Hon Richard (Mark) Burton - 783 - 783 Hon Christopher Carter 9,121 115 - 9,236 Hon John Carter 2,765 1,956 - 4,721 Hon David Caygill 7,705 - - 7,705 Hon Warren Cooper 728 - - 728 Rt Hon Wyatt Creech 787 1,465 - 2,252 Hon Dr Sir Michael Cullen 8,097 - - 8,097 Hon Sir Roger Douglas 10,945 1,049 - 11,994 Hon Harry Duynhoven 9,751 223 - 9,974 Rt Hon Paul East 948 4,035 - 4,983 Hon Anthony Friedlander 4,055 - - 4,055 Richard (Jim) Gerard - 500 - 500 Hon Peter Gresham 1,262 951 96 2,309 Hon Marie Hasler 1,970 - - 1,970 Hon George Hawkins 6,538 - - 6,538 Hon Dame Margaret (Ann) Hercus - 661 - 661 Hon Marian Hobbs 8,679 680 - 9,359 83
Total expenses incurred for Total expenses incurred for Total expenses incurred for Name of former member international air travel domestic air travel rail, road and ferry travel Total Hon Peter Hodgson 7,362 4,685 - 12,048 Dail Jones 3,188 - - 3,188 Judith Keall - 830 - 830 Graham Kelly 4,791 1,868 - 6,658 Hon Sir Douglas Kidd 8,630 1,938 55 10,623 Warren Kyd 8,117 1,540 - 9,657 Hon Graeme Lee 10,945 - - 10,945 Hon Sandra Lee-Vercoe - 199 - 199 Hon Murray (John) Luxton 7,566 2,579 - 10,145 Hon Peter McCardle - - 90 90 Rt Hon Sir Donald McKinnon 10,162 2,091 - 12,253 Hon Sir James McLay 3,803 488 - 4,291 Hon Maurice McTigue 5,724 - - 5,724 Hon Steve Maharey 8,579 - - 8,579 Hon Cedric (Russell) Marshall - 1,291 - 1,291 Hon Denis Marshall - 1,039 - 1,039 Hon Dr Clive Matthewson - 707 - 707 Hon Roger Maxwell 2,369 1,215 - 3,584 Alan (Ross) Meurant 2,934 - - 2,934 Brian Neeson 2,829 - - 2,829 Dr Muriel Newman 454 - - 454 Richard Northey 1,131 641 - 1,772 Hon Katherine O'Regan 1,591 - - 1,591 Mark Peck - 1,603 - 1,603 Marjorie (Jill) Pettis - 342 - 342 Hon Richard Prebble 8,234 2,260 - 10,494 Hon Derek Quigley 5,014 - - 5,014 Marilyn Quigley 3,998 311 - 4,309 Ian Revell 6,724 - - 6,724 Harold (Ross) Robertson 1,638 1,480 - 3,118 Hon Matthew Robson 6,656 610 - 7,266 Hon Stanley Rodger 2,365 965 - 3,330 Hon Anthony Ryall 5,674 1,333 - 7,007 Hon Dr Ian Shearer 2,830 - - 2,830 Hon Kenneth Shirley 914 1,197 308 2,418 Hon Clement Simich - 271 - 271 Rt Hon Dr Sir Alexander 10,945 686 - 11,631 (Lockwood) Smith Hon Robert Storey - 335 - 335 Hon James Sutton 8,617 754 - 9,371 Patricia (Elizabeth) Tennet - 196 77 273 John Terris 5,555 275 - 5,830 Hon Judith Tizard 5,311 1,737 - 7,048 84 Annual Report 2016 - 2017
Dr Marilyn Waring 2,182 352 - 2,535 Hon Frances Wilde 5,102 - - 5,102 Philip Woollaston - 0 195 195 Robert (Doug) Woolerton 483 - - 483 Dianne Yates 542 - - 542
Claims relating to prior year travel -
Mark Peck - 303 - 303
Hon Richard Prebble 7,446 - - 7,446
Hon Derek Quigley 3,430 - - 3,430
Ian Revell 3,299 - - 3,299
Philip Woollaston - 285 - 285
Subtotal of former members 313,157 68,158 1,490 382,805
Name of Spouse/ Total expenses Total expenses Partner/Surviving incurred for Total expenses incurred for rail, Spouse of former international air incurred for road and ferry member Name of former member travel domestic air travel travel Total Doreen Anderson Robert Anderson 716 - - 716 Carole Anderton Hon James Anderton 3,896 1,781 - 5,677 Catherine Ardern Philip (Shane) Ardern 1,230 - - 1,230 Lady Sandra Arthur Sir Basil Arthur 889 - - 889 Barbara Bailey Hon Ronald Bailey 8,139 - - 8,139 Judith Bassett Hon Dr Michael Bassett 10,945 1,418 - 12,364 Gail Birt Hon Dr Clive Mathewson - 1,007 - 1,007 Joan Bolger Rt Hon James Bolger 7,953 - - 7,953 Rosemary Bradford Hon Maxwell Bradford 5,655 886 211 6,751 Lynley Brown Peter Brown 567 162 - 729 Rosalind Burdon Hon Philip Burdon 9,646 1,609 - 11,256 Leoni Carter Hon John Carter 3,122 2,257 - 5,379 Eileen Caygill Hon David Caygill 7,705 - - 7,705 Lowson Collins Hon Dr Sir Michael Cullen 8,097 - - 8,097 Noeline Colman Rt Hon Fraser Colman 9,789 3,091 - 12,880 Diane Comber Ken Comber 348 752 8 1,108 Lorraine Cooper Hon Warren Cooper 728 - - 728 Michael Cox Hon Katherine O'Regan 1,591 - - 1,591 Diana Creech Rt Hon Wyatt Creech 10,278 518 - 10,796 Lady Glennis Douglas Hon Sir Roger Douglas 9,391 229 - 9,620 Margaret Duynhoven Hon Harry Duynhoven 9,751 - - 9,751 Marilyn East Rt Hon Paul East 1,389 1,534 - 2,923 Bette Jo Flagler Hon Steven Maharey 9,164 - - 9,164 Pamela Friedlander Hon Anthony Friedlander 4,055 - - 4,055 John Galvin Patricia (Elizabeth) Tennet - 196 77 273 Mary Gerard Richard (Jim) Gerard - 1,291 - 1,291 Margot Gresham Hon Peter Gresham 1,262 945 96 2,303 85
Name of Spouse/ Total expenses Total expenses Partner/Surviving incurred for Total expenses incurred for rail, Spouse of former international air incurred for road and ferry member Name of former member travel domestic air travel travel Total Janice Hawkins Hon George Hawkins 6,538 - - 6,538 Katherine Hawley John Terris 1,098 - - 1,098 Hon Dame Margaret (Ann) John Hercus - 661 - 661 Hercus John Hunt Marilyn Quigley 6,332 232 - 6,564 Elaine Jones Dail Jones 2,978 - - 2,978 Peter Kaiser Hon Christopher Carter 9,121 115 - 9,236 Lady Jane Kidd Hon Sir Douglas Kidd 8,630 3,053 - 11,683 Dianne Kyd Warren Kyd 8,117 1,540 - 9,657 Daphne Lee Hon Graeme Lee 10,945 - - 10,945 John Lepper Hon Phillida Bunkle - 565 - 565 Joan MacDonell Brian MacDonell 1,158 - - 1,158 Elizabeth McAffer Hon Derek Quigley 4,253 - - 4,253 Anna McCardle Hon Peter McCardle 2,127 - 90 2,217 Nan McKenzie Hon Noel Scott - 692 - 692 Lady Marcy McLay Hon Sir James McLay 8,214 - - 8,214 Barbara McTigue Hon Maurice McTigue 3,283 - - 3,283 Ramon Maniapoto Timothy Barnett 7,532 548 - 8,080 Anne Marris Hon Peter Hodgson 8,225 4,875 - 13,101 Barbara Marshall Hon Cedric (Russell) Marshall - 1,463 - 1,463 Tui Maxwell Hon Roger Maxwell 2,369 2,096 - 4,465 Vanessa Neeson Brian Neeson 2,731 - - 2,731 Robyn Northey Richard Northey 1,127 905 - 2,032 Margaret Peck Mark Peck - 890 - 890 Warren Pettis Marjorie (Jill) Pettis - 342 - 342 Gabriele Pfaender Dr Bruce Gregory - 548 - 548 Margaret Pope Rt Hon David Lange 3,956 - - 3,956 Susan GoldfinchRevell Ian Revell 5,248 - - 5,248 Yvonne Riddiford Hon Daniel Riddiford 5,274 470 - 5,744 Grace Robertson Harold (Ross) Robertson 4,326 1,480 - 5,805 Lady Glen Rowling Rt Hon Sir Wallace Rowling 4,001 - - 4,001 Petronella Townshend Hon Matthew Robson 425 212 - 637 Anne Rodger Hon Stanley Rodger 2,365 1,364 - 3,729 Kara Ryall Hon Anthony Ryall 4,984 1,333 - 6,317 Mary Scholtens Hon Murray (John) Luxton 8,554 2,521 - 11,075 Cheryl Shearer Hon Dr Ian Shearer 2,830 - - 2,830 Nicola Shirlaw Rodney Donald 653 670 - 1,322 Jenny Shirley Hon Kenneth Shirley 3,251 2,320 308 5,879 Ann Simich Hon Clement Simich - 271 - 271 Rt Hon Dr Sir Alexander Lady Alexandra Smith 1,452 1,273 - 2,724 (Lockwood) Smith Raewyn Steel Anthony Steel - 238 - 238 86 Annual Report 2016 - 2017
Name of Spouse/ Total expenses Total expenses Partner/Surviving incurred for Total expenses incurred for rail, Spouse of former international air incurred for road and ferry member Name of former member travel domestic air travel travel Total Lorraine Storey Hon Robert Storey - 335 - 335 Hon Tini (Whetu) Tirikatene Dr Denis Sullivan 3,723 1,484 - 5,207 Sullivan Verna Sutherland Larry Sutherland 596 - - 596 Patricia Ranstead Hon James Sutton 8,617 680 - 9,298 Ngahuia Wade Hon Richard Prebble 2,157 564 - 2,721 Susannah Walker Hon Herbert Walker 8,549 - - 8,549 Helen Wellington Meryyn Wellington - 511 - 511 Beverly Woolerton Robert (Doug) Woolerton 483 - - 483 Carol Woollaston Philip Woollaston - - 195 195 Sammy Wong Hon Pansy Wong 6,582 - - 6,582
Claims relating to prior year travel - Rt Hon Sir Donald Lady Clare Delore 6,081 979 - 7,060 McKinnon Elizabeth McAffer Hon Derek Quigley 4,514 - - 4,514 Nan McKenzie Hon Noel Scott 468 865 - 1,333 Margaret Peck Mark Peck - 297 - 297 Susan GoldfinchRevell Ian Revell 1,650 - - 1,650 Nicola Shirlaw Rodney Donald - 238 - 238 Carol Woollaston Philip Woollaston - 273 - 273 Subtotal of spouse/ partner of former members 311,824 54,577 984 367,386
Subtotal of former members 313,157 68,158 1,490 382,805
Subtotal of spouse/ partner of former members 311,824 54,577 984 367,386
Fringe benefit taxes 352,647
Total 1,102,838