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Download the Annual Report 2010/2011 [PDF 1 MB, 112 pages]

publication information

Published in October 2011
ISSN: 117-0503 (print)
ISSN: 117-8148 (web)

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Annual Report 2010/2011 - Part 2: Financial Statements

Statement of Comprehensive income
for the year ended 30 June 2011

Actual
2010
$ 000
  Note Actual
2011
$ 000
Main Estimates 2011
$ 000
Supplementary Estimates
2011
$ 000
  Income        
26,776 Revenue Crown   36,004 46,072 36,004
563 Revenue Department   546 590 590
41,315 Revenue other 2 41,486 52,390 43,433
- Gains 3 14 - -
68,654 Total income   78,050 99,052 80,027
           
  Expenditure        
30,320 Personnel costs 4 33,815 37,379 33,422
2,549 Depreciation and amortisation expense 9,10 2,834 4,866 2,929
1,295 Capital charge 5 1,323 1,501 1,323
11 Finance costs 6 11 - 12
131 Net loss on disposal of property, plant and equipment   - - -
28,333 Other operating expenses 7 32,791 49,666 46,863
           
62,639 Total expenditure   70,774 93,412 84,549
6,015 Net surplus/(deficit)   7,276 5,640 (4,522)
6,015 Total comprehensive income   7,276 5,640 (4,522)

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Statement of changes in taxpayers' funds
for the year ended 30 June 2011

Actual
2010
$ 000
  Note Actual
2011
$ 000
Main Estimates 2011
$ 000
Supplementary Estimates
2011
$ 000
17,272 Balance as at 1 July   17,645 17,897 17,645
6,015 Total comprehensive income   7,276  5,640 (4,522)
(8,331) Repayment of surplus to the Crown 12  (10,437)  (9,915) 4,522
2,064 Capital contributions to fund memorandum account deficits    - 6,100  -
625 Capital contributions for fixed assets   1,825  - 1,825
17,645 Taxpayers’ funds as at 30 June   16,309 19,722 19,470

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Statement of financial position
as at 30 June 2011

Actual
2010
$ 000
  Note Actual
2011
$ 000
Main
Estimates
2011
$ 000
Supplementary Estimates
2011
$ 000
  Assets        
  Current assets        
686 Cash and cash equivalents   11,023 9,597 3,281
21,022 Debtors and other receivables 8 15,521 16,000 9,000
82 Prepayments   265 133 82
21,790 Total current assets   26,809 25,730 12,363
           
  Non-current assets        
5,756 Property, plant and equipment 9 4,687 5,446 4,618
7,944 Intangible assets 10 7,287 10,533 7,415
13,700 Total non-current assets   11,974 15,979 12,033
35,490 Total assets   38,783 41,709 24,396
           
  Liabilities        
  Current liabilities        
6,935 Creditors and other payables 11 8,866 9,217 6,934
8,331 Repayment of surplus 12 10,437 9,915 (4,522)
10 Provisions 13 315 10 10
1,711 Employee entitlements 14 1,854 1,600 1,712
198 Finance leases 15 198 198 198
17,185 Total current liabilities   21,670 20,940 4,332
           
  Non-current liabilities        
29 Provisions 13 258 40 29
86 Employee entitlements 14 199 500 86
545 Finance leases 15 347 507 479
660 Total non-current liabilities   804 1,047 594
17,845 Total liabilities   22,474 21,987 4,926
17,645 Net assets   16,309 19,722 19,470
           
  Taxpayers' funds        
17,645 General funds   16,309 19,722 19,470
17,645 Total taxpayers' funds   16,309 19,722 19,470

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Statement of Cash Flows
for the year ended 30 June 2011

Actual
2010
$ 000
  Note Actual
2011
$ 000
Main
Estimates 2011
$ 000
Supplementary Estimates
2011
$ 000
  Cash flows from operating activities        
26,775 Receipts from Crown   36,004 46,072 36,004
46,920 Receipts from revenue other   46,058 53,283 53,981
(29,096) Payments to suppliers   (30,033) (50,240) (46,941)
(30,903) Payments to employees   (34,121) (36,837) (33,422)
(1,295) Payments for capital charge   (1,323) (1,501) (1,323)
123 Goods and Services Tax (net)   (445) - -
12,524 Net cash from operating activities 16 16,140 10,777 8,299
           
  Cash flows from investing activities        
26 Receipts from sale of property, plant and equipment   35 - -
(307) Purchase of property, plant and equipment   (369) (1,079) (395)
(5,549) Purchase of intangible assets   (831) (5,424) (867)
(5,830) Net cash from investing activities   (1,165) (6,503) (1,262)
           
  Cash flows from financing activities        
625 Capital contribution   3,889 6,100 3,889
(8,558) Repayment of surplus   (8,329) (6,038) (8,331)
(198) Payment of finance leases   (198) - -
(8,131) Net cash from financing activities   (4,638) 62 (4,442)
           
(1,437) Net (decrease)/increase in cash   10,337 4,336 2,595
2,123 Cash at the beginning of the year   686 5,261 686
686 Cash at the end of the year   11,023 9,597 3,281

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, a) as the gross amounts do not provide meaningful information for financial statement purposes, and b) to be consistent with the presentation basis of the other primary financial statements. 

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Statement of commitments
as at 30 June 2011

Non-cancellable operating lease commitments

The Department leases property and equipment in the normal course of its business. The majority of these leases are for premises, telecommunications equipment and photocopiers, which have a non-cancellable leasing period ranging from one to ten years.

Actual
2010
$ 000
  Actual
2011
$ 000
  Non-cancellable operating lease commitments
2,821 Not later than one year 3,165
9,900 Later than one year and not later than five years 8,016
1,587 Later than five years 978
14,308 Total non-cancellable operating lease commitments 12,159

Capital commitments

As at 30 June 2011 there were no capital commitments (2010: nil).

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Statement of contingent liabilities and contingent assets
as at 30 June 2011

Quantifiable contingent liabilities

The Department has been named as a defendant in a claim before the Weathertight Homes Tribunal. The claim of $390,000 against the Department is based on an allegation that a contracted assessor who assessed a leaky home in 2003 carried out the work negligently, failed to notice damage and, as a result, this damage was not repaired and became worse over time. This was a contingent liability at 30 June 2011 and was also a contingent liability last year.

There were three judicial reviews at 30 June 2011 totalling $45,000 relating to the Weathertight Homes Resolution Service with a potential for costs to be awarded against the Department.

Actual
2010
$ 000
  Actual
2011
$ 000
  Quantifiable contingent liabilities  
390 Legal proceedings and disputes 435
390 Total contingent liabilities 435

The accompanying notes form part of the financial statements.

Unquantifiable contingent liabilities

The Department has given indemnities in relation to the Canterbury earthquake building performance Technical Investigation to the four consultants carrying out the investigations and the 12 members of the experts' panel (including one member representing each consultant). The indemnities cover costs from claims by third parties against the contractors or their staff in relation to the reports produced, as well as media releases made by the experts' panel Chair. There is no stated limit on the amount of each indemnity. The indemnities are only available if the contractor has complied with its obligations under its contract.

Contingent assets

The Department had no contingent assets as at 30 June 2011 (2010: nil).

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Statement of Department expenditure and capital expenditure against appropriations
for the year ended 30 June 2011

Expenditure
after remeasurements
2010 $ 000
  Expenditure after
remeasurements
2011 $ 000
Appropriation
Voted
2011*
$ 000
  Vote Housing    
  Annual output expense appropriations    
15,368 Building Regulation and Control - -
7,596 Occupational Licensing - -
1,308 Performance Monitoring and Advice – Housing New Zealand Corporation 568 641
21,302 Residential Tenancy and Unit Title Services - -
4,446 Sector and Regulatory Policy 6,215 6,888
12,619 Weathertight Services** 16,674 25,559
- Canterbury Earthquakes: Arranging and Managing Emergency and Temporary Accommodation 1,559 2,207
62,639 Total annual output expense appropriations 25,016 35,295
       
  Multi-year year appropriations (after first of three years)    
- Building Regulation and Control 16,111 18,046
- Occupational Licensing 8,701 8,984
- Residential Tenancy & Unit Title Services 20,946 21,524
- Total multi-year output expense appropriations 45,758 48,554
62,639 Total output expense appropriations 70,774 83,849
       
  Annual appropriation for capital expenditure    
4,970 Department of Building and Housing - Capital Expenditure PLA 1,113 1,262
4,970 Total appropriation for capital expenditure 1,113 1,262

There were no remeasurements during the year.

* This includes adjustments made in the Supplementary Estimates.

** During the year fundsappropriated under "Weathertight Homes Resolution Services" were transferred to a new appropriation entitled "Weathertight Services". The statement above matches the figures for the previous and current appropriations for comparative purposes.

Reconciliation of multi-year appropriations 2011 - Appropriation, adjustment and use $ 000
   
Building Regulation and Control  
Original appropriation 46,898
Adjustments for 2010/11 2,965
Total adjusted appropriation 49,863
Actual expenses to 2010/11 year end (16,111)
Balance of appropriation 33,752
   
Occupational Licensing  
Original appropriation 27,341
Adjustments for 2010/11 -
Total adjusted appropriation 27,341
Actual expenses to 2010/11 year end (8,701)
Balance of appropriation 18,640
   
Residential Tenancy and Unit Titles Services  
Original appropriation 66,550
Adjustments for 2010/11 830
Total adjusted appropriation 67,380
Actual expenses to 2010/11 year end (20,946)
Balance of appropriation 46,434

Statement of unappropriated expenditure
For the year ended 30 June 2011

The Department of Building and Housing had no instances of unappropriated expenditure for the year ended 30 June 2011 (2010: nil).

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Statement of trust monies
as at 30 June 2011

The Department of Building and Housing operates trust accounts under section 66 of the Public Finance Act 1989. The transactions through these accounts and their balances at 30 June 2011 are not included in the Department's own financial statements. Movements in these accounts during the year ended 30 June 2011 (as reported to the Treasury) were as follows:

  Opening
Balance
1 July 2010
$ 000
Distributions
Made
$ 000
Capital
Increase
$ 000
Closing
Balance
30 June 2011
$ 000
         
Trust Accounts        
Certifiers Bond Trust Account 192 (5) 5 192
Residential Tenancies Trust Account 314,475 (142,935) 170,469 342,009

Certifiers Bond Trust Account

This account holds in trust deposits received from certifiers of building consents.

Residential Tenancies Trust Account

This account holds all sums paid by way of a bond in respect of any tenancy pursuant to the Residential Tenancies Act 1986.

A full set of audited financial statements for the Residential Tenancies Trust Account, prepared on an accrual accounting basis in conformity with generally accepted accounting practice, is provided on pages 90 to 96.

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