Forecast Financial Statements. Ministry of Defence. EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol.4 183

Transcription

1 Forecast Financial Statements Ministry of Defence EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4 183

2 Statement of Forecast Financial Performance for the year ending 30 June 2009 Note Income Crown 9,502 9,398 9,398 9,398 Department(s) Other revenue Gains Interest Total Income 9,921 9,689 9,689 9,601 Expenses Personnel 2 5,496 6,283 6,283 6,622 Operating 3 3,272 2,814 2,570 2,352 Depreciation and amortisation Capital charge Finance costs Other Total Expenses 5 9,181 9,689 9,445 9,601 Net Surplus / (Deficit) EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4

3 Statement of Forecast Changes in Taxpayers Funds for the year ending 30 June 2009 Note Balance at 1 July General funds 1,555 3,416 3,416 3,416 Revaluation reserve Other reserves Taxpayers' Funds Opening Balance 1,555 3,416 3,416 3,416 Changes in Taxpayers' Funds Income and Expense for the Period Net surplus / (deficit) for the year Total gains / (losses) taken to equity Total Income and Expense for the Period Other Changes Repayment of surplus (740) - (244) - Capital contribution 1, Capital withdrawal Other Total Changes in Taxpayers Funds 1, Balance at 30 June General funds 3,416 3,416 3,416 3,416 Revaluation reserve Other reserves Taxpayers' Funds Closing Balance 3,416 3,416 3,416 3,416 EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4 185

4 Forecast Statement of Financial Position as at 30 June 2009 Note Assets Current Assets Cash and cash equivalents 2,444 1,553 1,604 1,318 Debtors and other receivables Prepayments Inventories Other current assets Total Current Assets 2,663 1,816 1,867 1,581 Non-current Assets Property, plant and equipment 8 2,642 2,607 2,607 2,662 Intangible assets Other non-current assets Total Non-current Assets 2,776 2,718 2,718 2,805 Total Assets 5,439 4,534 4,585 4,386 Liabilities Current Liabilities Creditors and other payables Repayment of surplus Employee entitlements Other current liabilities Total Current Liabilities 1, Non-current Liabilities Provisions Employee entitlements Other non-current liabilities Total Non-current Liabilities Total Liabilities 2,023 1,118 1, Taxpayers Funds General funds 3,416 3,416 3,416 3,416 Revaluation reserve Other reserves Total Taxpayers' Funds 3,416 3,416 3,416 3,416 Total Liabilities and Taxpayers' Funds 5,439 4,534 4,585 4, EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4

5 Statement of Forecast Cash Flows for the year ending 30 June 2009 Note Cash Flows from Operating Activities Receipts from: Crown 9,502 9,398 9,398 9,398 Department(s) Other Interest Payments to: Suppliers (9,199) (3,242) (2,998) (2,759) Employees - (5,972) (5,972) (6,278) Capital charge (151) (256) (256) (256) Goods and services tax (net) - (120) (120) - Other operating activities Net Cash from Operating Activities Cash Flow from Investing Activities Receipts from: Sale of property, plant and equipment Sale of intangible assets Sale of other non-current assets Purchase of: Property, plant and equipment (1,861) (250) (443) (350) Intangible assets Other non-current assets Net Cash from Investing Activities (1,861) (250) (443) (350) Cash Flow from Financing Activities Capital contribution 1, Other financing cash inflows Repayment of surplus - (740) (740) (244) Capital withdrawal Other financing cash outflows Net Cash from Financing Activities 1,861 (740) (740) (244) Net Increase / (Decrease) in Cash 571 (891) (840) (286) Cash at the beginning of the year 1,873 2,444 2,444 1,604 Cash at the end of the year 2,444 1,553 1,604 1,318 EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4 187

6 Statement of Significant Assumptions These forecast financial statements have been compiled on the basis of existing government policies and Ministerial expectations at the time the statements were finalised. The main assumptions are as follows: The department's activities will remain substantially the same as for the previous year. Personnel costs are based on 61 staff positions. Operating costs are based on historical experience. The general historical pattern is expected to continue. year end information for is used as the opening position for the forecasts. These assumptions are adopted as at 2 April Factors that could lead to material differences between the forecast financial statements and the actual financial statements include: changes to the baseline budget through new initiatives, or technical adjustments. Department-Specific Accounting Policies The Ministry of Defence has applied the accounting policies set out in Statement of Accounting Policies Standard included in this document, except as stated below. Reporting entity These are the prospective financial statements of the Ministry of Defence, prepared in accordance with section 38 of the Public Finance Act The Ministry of Defence is a Government Department as defined by section 2 of the Public Finance Act For the purposes of financial reporting the Ministry of Defence is a public benefit entity. Authorisation statement These forecast financial statements were authorised for issue by the Secretary of Defence on 2 April The Ministry of Defence is responsible for the forecast financial statements presented, including the appropriateness of the assumptions underlying the forecast financial statements presented, including the appropriateness of the assumptions underlying the forecast financial statements and all other required disclosures. Property, plant and equipment The capitalisation threshold for property, plant and equipment is $5,000. Depreciation The estimated useful lives of property, plant and equipment are set out below: Leasehold improvements - 18 years. IT equipment / hardware years. Furniture and office equipment - 7 years. Intangible assets The capitalisation threshold for intangible assets is $5,000. The estimated useful lives of intangible assets is 3 years. 188 EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4

7 Cost allocation The Ministry derives the cost of outputs using a cost allocation system that is outlined below: Criteria for direct and indirect costs "Direct costs" are those costs directly attributable to an output. "Indirect costs" are those costs that cannot be identified in an economically feasible manner with a specific output. Direct costs assigned to outputs Direct costs are assigned to outputs by charging payments to specific job numbers. Selection of "general cost" job numbers within an output class will treat the expense as a direct cost to the output even though a specific job within the output class has not been identified. Basis for assigning indirect and corporate costs to outputs Indirect costs are assigned to outputs by charging payments to a corporate job number. The accounting system is programmed to allocate corporate job costs to three output classes on a predetermined percentage for each expense item. The percentage number is an assessment of services to be provided to each output class in the ensuing year. EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4 189

8 Notes to the Financial Statements Note 1 - Income - department(s) Employer superannuation subsidy recovery New Zealand Defence Force for initial project costs Total income department(s) Note 2 - Personnel expenses Salaries and wages 5,382 6,033 6,033 6,346 Retirement and resigning leave (43) (4) (4) 20 Superannuation contributions Total personnel expenses 5,496 6,283 6,283 6,622 Note 3 - Operating expenses Operating expenses include: Consultants' fees Overseas travel Domestic travel Other 2,587 2,136 1,892 1,877 Total operating expenses 3,272 2,814 2,570 2,352 Note 4 - Depreciation and amortisation Depreciation Leasehold improvements Office and computer equipment Office furniture Total depreciation EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4

9 Amortisation Computer software Total amortisation Total depreciation and amortisation Note 5 - Reconciliation of Departmental Expenses and Appropriations Appropriations for output expenses Total for Vote Defence 9,921 9,689 9,689 9,601 Total appropriations for output expenses 9,921 9,689 9,689 9,601 Adjustments Appropriation amounts unused Total adjustments Total departmental expenses 9,181 9,689 9,445 9,601 Note 6 - Reconciliation of net surplus to net cash flow from operating activities for the year ending 30 June 2009 Net surplus/(deficit) Add/(less) non-cash items Depreciation expense Amortisation expense Total non-cash items Add/(less) movements in working capital items (Inc)/Dec in debtors and other receivables (40) (44) (44) - (Inc)/Dec in prepayments (13) Inc/(Dec) in creditors and other payables (332) (217) (217) (108) Inc/(Dec) in employee entitlements (63) Net movements in working capital items (448) (257) (257) (83) Add/(less) movements in non-current liabilities Inc/(Dec) in employee entitlements Net movements in non current liabilities Net cash from operating activities EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4 191

10 Note 7 - Debtors and other receivables Debtor Crown Debtors others Total debtors and other receivables Note 8 - Property, plant and equipment Land Buildings Leasehold improvements Furniture/office equipment Other Total Cost or revaluation Balance as at 1 July , ,913 Additions by purchase Disposals (150) - (150) Balance as at 30 June ,378 1,760-4,138 Accumulated depreciation and impairment losses Balance as at 1 July ,090-1,306 Depreciation expense Disposals (150) - (150) Balance as at 30 June ,056-1,476 Carrying amount as at 30 June , ,662 Note 9 - Intangible assets Acquired software Internally generated software Other Total Cost Balance as at 1 July Additions by purchase Balance as at 30 June Accumulated amortisation and impairment losses Balance as at 1 July Amortisation expense Balance as at 30 June Carrying amount as at 30 June EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4

11 Note 10 - Creditors and other payables Creditors and other payables Accrued expenses GST payable Creditors and other payables Accrued expenses for property, plant and equipment Total creditors and other payables Note 11 - Employee entitlements Current Liabilities Salaries payable Annual leave Sick leave Long service, retirement and resigning leave Total current employee entitlements Non Current Liabilities Long service, retirement and resigning leave Total non current employee entitlements Total employee entitlements EXTERNAL SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.4 193