Statement of Objectives Specifying the Forecast Financial Performance

For the year ended 30 June 2007

	2005/06 Budgeted $000	2005/06 Estimated Actual $000	2006/07 Budget $000
Operating expenses
Revenue: other	32,885	32,885	36,233
Output expenses	59,243	57,882	71,843
Operating surplus/(deficit) before capital charge	(713)	461	(866)
Surplus/(deficit) from operations	(1,045)	129	(1,746)
Working capital
Net current assets	352	1,426	3,223
Resource use
Physical assets:
Total physical assets at year end	9,429	9,429	12,131
Taxpayers' funds:
Level at year end	9,481	10,555	15,004
Forecast net cash flows
Surplus/(deficit) operating activities	1,594	2,768	6
Surplus/(deficit) investing activities	(7,575)	(7,575)	(4,673)
Surplus/(deficit) financing activities	9,053	9,053	4,165
Net increase/(decrease) in cash held	3,072	4,246	(502)

Reconciliation of Output Expense Appropriations to Total Operating Expenses 

For the year ended 30 June 2007

	Appropriation $000	Expenses $000
Output Expense
Residential Tenancy Services	17,876	17,876
Purchase and Monitoring - Housing New Zealand Corporation	404	404
Sector and Regulatory Policy	5,258	5,258
Building Act 2004 Implementation	4,288	4,288
Occupational Licensing	7,535	7,535
Building Regulation and Controls	12,640	12,640
Weathertight Homes Resolution Service	23,842	23,842
Total Operating Expenses	71,843	71,843

Statement of Forecast Commitments

As at 30 June 2007

	2005/06 Budget Actual $000	2006/07 Estimated $000	2006/07 Budget $000
Capital commitments	0	0	0
Operating commitments:
Less than 1 year	2,538	2,538	0
1 to 2 years	2,052	2,052	4,590
2 to 5 years	4,823	4,823	4,823
More than 5 years	6,065	6,065	6,065
Total operating commitments	15,478	15,478	15,478
Total commitments	15,478	15,478	15,478

Memorandum Accounts

Memorandum accounts are notional accounts to record the accumulated balance of surpluses and deficits incurred for outputs operating on a full cost recovery basis. They are intended to provide a long-run perspective to the pricing of outputs.

	2004/05 Actual $000	2005/06 Budget $000	2005/06 Estimated Actual $000	2006/07 Budget $000
Building Controls
Opening balance at 1 July	0	(2,996)	(2,996)	(29)
Revenue	0	17,971	17,971	18,072
Expenses	2,996	15,104	15,004	16,552
Closing balance at 30 June	(2,996)	(129)	(29)	1,491
Occupational Licensing - Building Practitioners
Opening balance at 1 July	0	(1,537)	(1,537)	(4,375)
Transfer deficit from Ministry of Economic Development	(260)	0	0	0
Revenue	1	0	0	1,399
Expenses	1,278	3,912	2,838	4,678
Closing balance at 30 June	(1,537)	(5,449)	(4,375)	(7,654)

During 2006/07, approval from the Minister of Housing and Minister of Finance will be sought to open a new memorandum account 'Occupational Licensing - Electrical Workers' and for the transfer of the balance of the former memorandum account from the Ministry of Economic Development. The Electrical Workers Licensing Group transfers to the Department from the Ministry of Economic Development on 1 September 2006.