Financial Statements

The accompanying notes form part of the financial statements

Statement of financial performance

for the year ended 30 June 2008

Actual 2007 $000		Note	Actual 2008 $000	Main Estimates 2008 $000	Supplementary Estimates 2008 $000
	Income
27,842	Revenue Crown		22,817	26,543	26,210
387	Revenue Department		521	395	486
43,132	Revenue Other	2	47,872	42,086	46,014
36	Gains	3	7	-	-
71,397	Total Income		71,217	69,024	72,710
	Expenditure
30,195	Personnel costs	4	32,066	29,428	29,553
1,487	Depreciation and amortisation expense	8,9	1,683	3,412	1,710
829	Capital Charge	5	850	1,032	1,032
268	Restructuring Costs		108	-	-
34,841	Other operating expenses	6	32,047	33,710	42,382
67,620	Total expenditure		66,754	67,582	74,677
3,777	Net Surplus/(deficit)		4,463	1,442	(1,967)

Statement of changes in taxpayers' funds

for the year ended 30 June 2008

Actual 2007 $000		Note	Actual 2008 $000	Main Estimates 2008 $000	Supplementary Estimates 2008 $000
	Income
10,050	Balance as at 1 July		11,220	9,244	11,220
3,777	Surplus/(deficit) for the year		4,463	1,442	(1,967)
3,777	Total recognised income and expense		4,463	1,442	(1,967)
(9,192)	Repayment of surplus to the Crown	11	(9,289)	(3,458)	(2,859)
5,541	Capital contribution to fund memorandum account deficit(s)		4,826	4,649	4,826
905	Capital contributions for fixed assets		260	1,352	260
139	Net asset transfer from the Ministry of Economic Development in 2006/07		-	-	-
11,220	Taxpayers' funds as at 30 June	14	11,480	13,229	11,480

Statement of financial position

as at 30 June 2008

Actual 2007 $000		Note	Actual 2008 $000	Main Estimates 2008 $000	Supplementary Estimates 2008 $000
	Assets
	Current assets
473	Cash and equivalents		1,770	682	230
23,167	Debtors and other receivables	7	24,032	12,030	15,912
200	Prepayments		234	-	200
67	Inventories		-	-	-
23,907	Total current assets		26,036	12,712	16,342
	Non-current assets
7,399	Property, plant and equipment	8	6,954	11,268	7,858
608	Intangible assets	9	470	1,831	1,719
8,007	Total non-current assets		7,424	13,099	9,577
31,914	Total assets		33,460	25,811	25,919
	Current Liabilities
9,532	Creditors and other payables	10	10,372	7,375	9,400
9,192	Repayment of surplus	11	9,289	3,458	2,859
306	Provisions	12	488	4	350
1,259	Employee entitlements	13	1,396	1,040	1,400
20,289	Total current liabilities		21,545	11,877	14,009
	Non-current liabilities
50	Provisions	12	29	22	30
355	Employee entitlements	13	406	683	400
405	Total non-current liabilities		435	705	430
20,694	Total liabilities		21,980	12,582	14,439
11,220	Net assets		11,480	13,229	11,480
	Taxpayers' funds
11,220	General funds	14	11,480	13,229	11,480
11,220	Total taxpayers' funds		11,480	13,229	11,480

Statement of cashflows 

for the year ended 30 June 2008

Actual 2007 $000		Note	Actual 2008 $000	Main Estimates 2008 $000	Supplementary Estimates 2008 $000
	Cash flows from operating activities
27,842	Receipts from Crown		22,817	26,543	26,210
36,948	Receipts from revenue - other		46,928	38,481	53,159
(33,119)	Payments to suppliers		(30,335)	(36,698)	(43,176)
(29,754)	Payments to employees		(31,828)	(29,428)	(29,263)
(829)	Payments for capital charge		(850)	(1,032)	-
208	Goods and services tax (net)		(227)	-	213
1,296	Net cash from operating activities	15	6,505	(2,134)	7,143
	Cash flows from investing activities
36	Receipts from sale of property, plant and equipment		11	-	-
(2,867)	Purchase of property, plant and equipment		(1,028)	(3,871)	(1,936)
-	Purchase of intangible assets		(86)	-	(1,344)
(2,831)	Net cash from investing activities		(1,103)	(3,871)	(3,280)
	Cash flows from financing activities
7,755	Capital contribution		5,086	6,001	5,086
(7,012)	Repayment of surplus		(9,191)	(64)	(9,192)
743	Net cash from financing activities		(4,105)	5,937	(4,106)
(792)	Net (decrease)/increase in cash		1,297	(68)	(243)
1,138	Cash at the beginning of the year		473	750	473
127	Transfer of cash balances from the Ministry of Economic Development (2007)		-	-	-
473	Cash at the end of the year		1,770	682	230

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

Statement of commitments

as at 30 June 2008

Non-cancellable operating lease commitments

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

Actual 2007 $000		Actual 2008 $000
	Non-cancellable operating lease commitments
2,557	Not later than one year	2,501
8,193	Later than one year and not later than five years	8,181
5,751	Later than five years	4,075
16,501	Total non-cancellable operating lease commitments	14,757
16,501	Total commitments	14,757

Statement of contingent liabilities and contingent assets

as at 30 June 2008

Actual 2007 $000		Actual 2008 $000
	Quantifiable contingent liabilities
40	Restructuring costs	-
519	Supplier disputes	-
559	Total contingent liabilities	-

Supplier disputes

Supplier disputes represent the amount claimed by a supplier in relation to the services provided to the Department in a contract.

Contingent liabilities

The Department has no contingent liabilities (2007:$559,000).

Contingent assets

The Department has no contingent assets (2007:nil).

Statement of departmental expenses and capital expenditure against appropriations

for the year ended 30 June 2008

Expenditure after remeasurements 2007 $000		Expenditure before remeasurements 2008 $000	Remeasurements 2008 $000	Expenditure after remeasurements 2008 $000	Appropriation Voted 2008* $000
	Vote Housing
5,265	Building Act 2004 Implementation	3,172	-	3172	3,296
11,851	Building Regulation and Control	12,706	-	12,706	14,428
8,812	Occupational Licensing	9,657	-	9,657	10,226
463	Purchase and Monitoring Advice - Housing New Zealand	514	-	514	533
18,222	Residential Tenancy Services	19,731	-	19,731	20,173
5,402	Sector and Regulatory Policy	4,095	-	4,095	5,144
17,605	Weathertight Homes Resolution Services	16,879	-	16,879	20,877
67,620	Total appropriation for output expenses	66,754	-	66,754	74,677
	Appropriation for capital expenditure
-	Department of Building and Housing - capital expenditure	1,115	-	1,115	3,280
-	Total	1,115	-	1,115	3,280

* This includes adjustment made in the Supplementary Estimates.

Statement of unappropriated expenditure

as at 30 June 2008

The Department of Building and Housing had no instances of unappropriated expenditure for the year ended 30 June 2008 (2007:nil)

Statement of Trust Monies

as at 30 June 2008

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 2008 are not included in the Department's own financial statements. Movements in these accounts during the year ended 30 June 2008 (as reported to the Treasury) were as follows:

	Opening Balance 1 July 2007 $000	Distributions Made $000	Capital Increase $000	Closing Balance 30 June 2008 $000
Trust Account
Certifiers Bond Trust Account	183	-	4	187
Residential Tenancies Trust Account	230,976	(115,135)	144,604	260,445

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 to 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 in Part 3.