Prospective non-departmental financial statements
In addition to the Statement of Prospective Non-departmental Appropriations and Expenditure on page 75, schedules of forecast non-departmental revenue and receipts, assets and liabilities are provided after the following Statement of Accounting Policies.
Statement of accounting policies
Measurement system
Measurement and recognition rules applied in the preparation of these non-departmental financial forecasts are consistent with generally accepted accounting practice, our departmental Statement of Significant Accounting Policies and Crown accounting policies. These non-departmental balances are consolidated into the Crown Financial Statements and therefore readers of these financial forecasts should also refer to the Forecast Crown Financial Statements for 2007/08.
Accounting policies
The following particular accounting policies, which materially affect the measurement of financial results and financial position, have been applied.
Goods and services tax (GST)
The Statement of Prospective Non-departmental Appropriations and Expenditure is exclusive of GST (where applicable). The Schedule of Forecast Non-Departmental Assets and the Schedule of Forecast Non-Departmental Liabilities are exclusive of GST, except for payables and receivables, which are GST-inclusive.
Liabilities are exclusive of GST, except for payables and receivables, which are GST-inclusive.
Revenues and receipts
We administer revenue on behalf of the Crown. The revenue includes interest on Housing New Zealand Corporation loans. Interest is recognised in the period to which it relates.
Expenses
Expenses are recognised in the period to which they relate.
Receivables
Receivables are recorded at estimated realisable value after providing, where necessary, for doubtful and uncollectible debts.
Commitments
Future expenses and liabilities to be incurred on contracts that have been entered into at balance date are disclosed as commitments (at the point a contractual obligation arises) to the extent that there are equally unperformed obligations. Commitments relating to employment contracts are not disclosed.
Contingent liabilities
Contingent liabilities are disclosed at the point at which the contingency is evident.
Statement of prospective non-departmental appropriations and expenditure
For the year ended 30 June 2008
| |
2005/06
Actual
$000 |
2006/07
Budget
$000 |
2006/07
Estimated
Actual
$000 |
2007/08
Budget
$000 |
Non-departmental output expenses
|
|
|
|
|
| Housing policy advice |
3,128 |
2,912 |
3,320 |
2,509 |
| Contracted housing support services |
9,162 |
11,183 |
10,635 |
12,072 |
| Housing New Zealand Corporation housing support services |
8,877 |
11,491 |
10,119 |
13,913 |
| Registration regime for architects |
225 |
- |
- |
- |
| Total non-departmental output expenses |
21,392 |
25,586 |
24,074 |
28,494 |
| |
|
|
|
|
Benefits and other unrequited expenses
|
|
|
|
|
| Housing assistance |
4,511 |
8,666 |
6,724 |
9,740 |
| Income related rental subsidy |
395,491 |
417,452 |
434,367 |
465,380 |
| Total benefits and other unrequited expenses |
400,002 |
426,118 |
441,091 |
475,120 |
| |
|
|
|
|
Other expenses to be incurred by the Crown
|
|
|
|
|
| Community Housing Rent Relief Programme |
4,373 |
4,500 |
4,500 |
4,500 |
| Increase in debt provision |
460 |
3,149 |
1,645 |
1,807 |
| Total other expenses to be incurred by the Crown |
4,833 |
7,649 |
6,145 |
6,307 |
| |
|
|
|
|
Capital Expenditure
|
|
|
|
|
| Housing New Zealand Corporation - loans to refinance third party debt |
- |
259,342 |
259,342 |
131,187 |
| Capital injections to Housing New Zealand |
|
|
|
|
| Corporation for housing activities |
208,251 |
216,913 |
204,796 |
111,168 |
| Loan to Registered Architects Board |
- |
45 |
45 |
- |
| Housing New Zealand Corporation Crown loans |
- |
- |
- |
40,000 |
| Housing New Zealand Limited Crown loans |
30,000 |
- |
- |
50,000 |
| Activities for state housing purposes |
54,000 |
- |
- |
- |
| Total capital expenditure |
292,251 |
476,300 |
464,183 |
332,355 |
| Total non-departmental expenditure and approriations |
718,478 |
935,653 |
935,493 |
842,276 |
Schedule of forecast non-departmental revenue and receipts
For the year ended 30 June 2008
| |
2005/06
Actual
$000 |
2006/07
Budget
$000 |
2006/07
Estimated
Actual
$000 |
2007/08
Budget
$000 |
Non-tax revenue
|
|
|
|
|
| Interest on Housing New Zealand Corporation loans |
96,748 |
109,323 |
115,564 |
130,980 |
| Dividend from Housing New Zealand Corporation |
14,140 |
4,279 |
20,211 |
7,356 |
| Total non-tax revenue |
110,888 |
113,602 |
135,775 |
138,336 |
Schedule of forecast non-departmental assets
As at 30 June 2008
| |
2005/06
Actual
$000 |
2006/07
Budget
$000 |
2006/07
Estimated
Actual
$000 |
2007/08
Budget
$000 |
Current assets
|
|
|
|
|
| Crown bank account |
501 |
2,684 |
500 |
500 |
| Receivables and advances |
10,914 |
8,220 |
10,254 |
9,252 |
| Total current assets |
11,415 |
10,904 |
10,754 |
9,752 |
| |
|
|
|
|
Non-current assets
|
|
|
|
|
| Investments |
869,701 |
1,036,166 |
1,029,442 |
1,116,153 |
| Physical assets |
- |
- |
85,920 |
85,920 |
| Total non-current assets |
869,701 |
1,036,166 |
1,115,362 |
1,202,073 |
| Total assets |
881,116 |
1,047,070 |
1,126,116 |
1,211,825 |
Schedule of forecast non-departmental liabilities
As at 30 June 2008
| |
2005/06
Actual
$000 |
2006/07
Budget
$000 |
2006/07
Estimated
Actual
$000 |
2007/08
Budget
$000 |
Current liabilities
|
|
|
|
|
| Payables and provisions |
45,926 |
67,205 |
71,497 |
71,497 |
| |
|
|
|
|
Non-current liabilities
|
|
|
|
|
| Payables |
22,191 |
- |
22,191 |
22,191 |
| Total liabilities |
68,117 |
67,205 |
93,688 |
93,688 |