Reconciliation of Net Surplus to Net Cash Flows from Operating Activities

For the year ended 30 June 2007

	2004/05 Actual $000	2005/06 Budget $000	2005/06 Estimated Actual $000	2006/07 Budget $000
Net surplus/(deficit) from operations	(4,085)	(1,045)	129	(1,746)
Add/(deduct) non-cash expenses/(revenues) from operating statement
Depreciation and amortisation	784	1,179	1,179	2,192
Add/(deduct) movements in working capital
(Increase)/decrease in receivables and advances	(3,844)	(4,924)	(4,924)	0
(Increase)/decrease in Debtor Crown	(20)	77	77	0
Increase/(decrease) in payables and provisions	4,420	6,307	6,307	(1,340)
Increase/(decrease) in deferred income	0	0	0	900
Items classified as investing activities
Net (gain)/loss on sale of physical assets	15	0	0	0
Net cash flows from operating activities	(2,730)	1,594	2,768	6

Statement of Forecast Movements in Taxpayers' Funds (Equity)

As at 30 June 2007

	2004/05 Actual $000	2005/06 Budget $000	2005/06 Estimated Actual $000	2006/07 Budget $000
Taxpayers' funds at the start of the period	3,301	4,152	4,152	10,555
Add
Net surplus/(deficit)	(4,085)	(1,045)	129	(1,746)
(Deduct)
Provision for payment of surplus to the Crown	(188)	(2,867)	(2,967)	(1,520)
Add
Capital injections from the Crown	5,124	9,241	9,241	7,132
Net asset transfer from Ministry of Economic Development	0	0	0	583
Taxpayers' funds at the end of the period	4,152	9,481	10,555	15,004

Details of Forecast Fixed Assets by Category

As at 30 June 2007

	30 June 2005 Actual Net Book Value $000	30 June 2006 Estimated Actual and Budgeted Net Book Value $000	30 June 2007 Projected Position Cost $000	30 June 2007 Projected Position Accumulated Depreciation $000	30 June 2007 Projected Position Net Book Value $000
Office equipment	119	394	737	110	627
Office renovations	340	3,795	4,233	975	3,258
Furniture and fittings	121	992	1,176	346	830
Computer hardware	737	2,100	7,712	2,978	4,734
Computer software	984	2,015	4,116	1,856	2,260
Motor vehicles	66	133	542	341	201
Transfer of fixed assets from
Ministry of Economic Development	0	0	764	543	221
Work in progress	666	0	0	0	0
Total	3,033	9,429	19,280	7,149	12,131

Estimated Capital Expenditure by Category

As at 30 June 2007 

	Forecast 2006/07 $000	Estimated Actual 2005/06 $000	Budget 2005/06 $000	Actual 2004/05 $000	Actual 2003/04 $000	Actual 2002/03 $000	Actual 2001/02 $000
Office equipment	0	318	318	169	7	22	3
Office renovations	286	3,479	3,479	666	74	269	151
Furniture and fittings	50	927	927	266	0	2	0
Computer hardware	3,435	1,306	1,306	184	555	261	322
Computer software	802	1,445	1,445	124	288	940	34
Motor vehicles	100	100	100	56	0	0	29
Total	4,673	7,575	7,575	1,465	924	1,494	539

The Department is authorised to incur capital expenditure by using the proceeds of the sale or disposal of any of its assets, together with any working capital held (section 24 of the Public Finance Act 1989).

The effective constraint on capital expenditure by the Department is the total of its net assets (section 22 of the Public Finance Act 1989). The net assets of the Department will increase by $7.715 million in 2006/07 through a transfer from the Ministry of Economic Development for the electrical workers registration system ($583,000) and capital injections from the Crown to fund a projected deficit in the occupational licensing memorandum account ($3.254 million), for the development of a licensing system for building practitioners ($905,000) and to fund essential infrastructure resources for the recently formed Department ($2.973 million).