Statement of Significant Accounting Policies
Specific accounting policies
Fixed assets
Fixed assets are stated at acquisition cost less accumulated depreciation.
Cost allocation
Cost drivers employed to assign indirect costs to outputs are resource usage, where available, based on floor space, staff numbers and fixed asset values.
Accounts receivable
Accounts receivable are recorded at the amounts expected to be ultimately collected.
Goods and Services Tax (GST)
Income, expenditure, assets and liabilities are recorded exclusive of GST, with the exception of accounts payable and receivable, which are recorded inclusive of GST.
Depreciation rates
Depreciation is accrued monthly using the straight-line method for all categories of assets. Depreciation is based on the expected life of the assets. The amount to be depreciated is the historic cost.
Furniture and fittings are depreciated over 10 years, the bond database system over 8 years, other software over 3 years, other equipment over 3 to 5 years, and office renovations over 6 to 10 years. Vehicles are written down to residual value over 3 years.
Commitments
Office accommodation and most photocopiers are leased. The value of contractual lease commitments at 30 June 2006 is estimated to be $1,826,000.
The Department has contracted to update software systems and computer equipment. The estimated value of work still to be completed at 30 June 2006 is $50,000.
Changes in accounting policies
It is not expected that there will be any changes in accounting policies.
Statement of Forecast Service Performance
| Residential Tenancy Services |
| This output class involves the administration of the Residential Tenancies Act 1986. It includes the provision of information, education, advice and dispute resolution services. It also involves undertaking compliance activity and the administration of residential tenancy bond monies. |
| Outputs |
Measures |
|
Advice and Guidance - provide improved access to tenancy information and advice that meets clients' needs including public education and targeted community and industry liaison work with:
- groups who are at risk in the housing market to improve housing outcomes
- industry to raise standards of property and property management
- government and non-government agencies to achieve common client outcomes.
|
Forecast volumes per year:
- 200,000-250,000 telephone enquiries for tenancy advice.
80 percent of tenancy advice will meet or exceed quality standards.
Call abandonment rate for tenancy advice will not exceed 7 percent.
|
| Bond Management - manage bond lodgements, refunds, and investment as required under the Residential Tenancies Act 1986. |
Forecast volumes per year:
- 190,000-210,000 bond lodgements.
- 190,000-210,000 bond refund requests.
- 180,000-220,000 calls for bond advice.
100 percent of bond refunds, refunded correctly based on information held at the time of refund, completed within two days.
100 percent of bond lodgements processed within 5 working days of receipt.
Call abandonment rate for bond advice calls will not exceed 5 percent. 85 percent of bond advice will meet or exceed quality standards.
All bond investments made within the Department's investment strategy criteria and within 0.25 percent of prevailing daily rates.
|
| Compliance - investigate, and respond to, alleged breaches of the Residential Tenancies Act 1986. |
80 percent of compliance interventions result in voluntary compliance. |
| Dispute Resolution - provide timely dispute resolution services that are accessible to our clients and connect with the different communities we serve. |
Forecast volumes per year:
- 43,000-50,000 Tenancy Tribunal applications.
65-70 percent of applications for dispute resolution will be resolved out of court (excluding vacated positions).
|
| Public Information and Education - provide information and education to consumers and producers to enable them to make informed decisions. |
Survey awareness of Tenancy Services, rights and obligations and the use of quality property management practices.
Assess effectiveness of information for target groups using focus groups and surveys.
|
| Tenancy Tribunal Administration - provide administrative support for the Tenancy Tribunal. |
Forecast volumes per year:
- 22,000-27,000 Tenancy Tribunal hearings will be scheduled.
80 percent of tenancy applications proceeding to the Tribunal will have a hearing within 20 days (excluding vacated applications).
|
| Cost for Output Class (figures exclusive of GST) |
Revenue: Crown
$000 |
Revenue: Department
$000 |
Revenue: Other
$000 |
Total Expenses
$000 |
Surplus/(Deficit)
$000 |
| 7,583 |
277 |
13,426 |
17,838 |
3,448 |
State Housing Appeals Services
| State Housing Appeals Services |
| This output class involves the provision of administrative support to the State Housing Appeals Authority, an external appeals authority established to hear appeals against Housing New Zealand Corporation decisions on the assessment of income-related rents, and applicants' eligibility and need for Housing New Zealand Corporation housing. |
| Outputs |
Measures |
| State Housing Appeals Authority Administration - provide administrative support to the State Housing Appeals Authority. |
All hearings will be within 20 working days of application. |
| Cost for Output Class (figures exclusive of GST) |
Revenue: Crown
$000 |
Revenue: Department
$000 |
Revenue: Other
$000 |
Total Expenses
$000 |
Surplus/(Deficit)
$000 |
| 67 |
0 |
0 |
67 |
0 |
Purchase and monitoring Advice - Housing New Zealand Corporation
| Purchase and Monitoring Advice - Housing New Zealand Corporation |
| This output class involves the provision of purchase and monitoring advice in relation to Housing New Zealand Corporation. |
| Outputs |
Measures |
| HNZC Monitoring and Purchase Advice |
Ministerial satisfaction assessed through a structured discussion with the Minister. This will include performance on quality standards agreed with the Minister. |
| Cost for Output Class (figures exclusive of GST) |
Revenue: Crown
$000 |
Revenue: Department
$000 |
Revenue: Other
$000 |
Total Expenses
$000 |
Surplus/(Deficit)
$000 |
| 386 |
14 |
0 |
400 |
0 |
Statement of Movements in Taxpayers' Funds (Equity)
As at 30 June 2005 and 2006
| |
Estimated
Position as at
30 June 2005
$000 |
ProjectedPosition as at
30 June 2006
$000 |
| Taxpayers' funds at the start of the period |
3,301 |
7,732 |
| |
|
|
| Add |
|
|
| Net surplus/(deficit) |
(5,833) |
(1,805) |
| (Deduct) |
|
|
| Provision for payment of surplus to the Crown |
0 |
0 |
| |
|
|
| Add |
|
|
| Capital Contribution from the Crown |
10,264 |
9,576 |
| Taxpayers' funds at the end of the period |
7,732 |
15,503 |